Everyone has a checking account. It’s an easy way to manage your money. However, these accounts generally don’t pay an interest on your money. Saving accounts are bank deposit accounts that pay you an interest on the money that you deposit.
Savings Accounts
There are a few different types of savings accounts you can choose from:
Regular Savings Accounts
These are deposit accounts that you can set up in banks, They are insured by the FDIC so your money is quite safe. Savings accounts have minimum balance requirements. they don’t let you withdraw money from them as easily as a checking account. These accounts are meant to be your savings, after all, not fund your regular expenses.
Some accounts might let you write checks a few times a month. Interest paid on savings accounts are generally low, around 0.06%.
Online Savings Account
These accounts are offered by traditional brick & mortar banks and online only banks. Generally, online banks offer a higher rate of interest than traditional banks, since they don’t have the large overheads that are involved in operating a traditional bank. These accounts are more flexible about minimum balance requirements. You can operate these accounts online or through the phone.
The interest rates on online savings accounts can be above 1%, especially if the balance is high. Some savings accounts, both regular and online, can offer higher interest rates based on how much you deposit into the account.
Money Market Deposit Accounts
These are different from regular savings accounts from the perspective of the bank. Usually, banks can only loan money in savings accounts to their customers. With Money Market Deposit Accounts, banks can invest these deposits in debt instruments like treasury notes, municipal bonds, certificates of deposits, and other securities with short maturity periods. The minimum balance requirement tends to be higher on these accounts when compared to normal savings accounts. Your money is safe since the deposit is backed by the FDIC. These investments yield higher returns, so the interest rates on these deposits are higher than regular savings deposits. But they’re not as high as the interest on online savings accounts. As of March 2017, the highest interest rate on a money market deposit account stands at 0.85%.
Certificates of Deposits(CD)
These are deposits made for a fixed term, and the interest accrues on the deposit until maturity. These deposits are generally made for periods that range from one month to five years. There’s a penalty for early withdrawal of money from a CD. Interest rates on these deposits can be a lot higher than regular savings accounts. The current average being 0.79% APY. One online bank, Capital One 360, offers a rate as high as 2.30% APY on 60 month deposits.
Automatic Savings Plans
These facilitate regular savings. You decide how much you’ll transfer each month from your checking account to the savings account. Then you’ll set up automatic transfers of a fixed amount to the savings account each month. These accounts help you save funds for vacations, buy appliances etc. Savings accounts may not yield as high a return as other investments, but they’re a good way to provide security. You can build cash reserves for leisure and emergency requirements through this method.
There are companies that work on collecting and maintaining credit information of consumers. These are known as credit reporting agencies (CRAs). There are three such major CRAs in the country, namely Equifax, Experian, and TransUnion. Apart from these, there are other smaller-scale agencies too that specialize at the job. If you’re worried about “where to get my credit score?,” the larger CRAs are the most reliable bets.
These major CRAs obtain information from companies that you hold business and transactions with. People or companies that lend you money regularly report to these CRAs on your repaying status. There is also detailed information on the amount you are indebted and whether you have ever defaulted on your payments. Aside from the reports obtained from lenders, these companies also tally your general records based on certain other aspects. Some of these aspects are your public records from the local and state judiciary. These include your tax records and bankruptcy information. This information makes up an important chunk of your credit score and its report.
Equifax
Present in 24 countries, Equifax is an agency that offers consumers protection against identity theft and credit fraudulence. They also sell credit reports and credit monitoring assistance to businesses.
Experian
Experian started off in London and is now a trusted agency in 39 different countries. It provides you with a credit score, credit report, and even credit tracker on subscription. The agency uses FICO 8 system of credit score calculation. Experian was a part of Forbes’ “World’s Most Innovative Companies” in 2018.
TransUnion
Based across 30 countries with a database of over 1 billion consumers, TransUnion is another CRA giant. The agency, like the other ones, will provide you with your credit score and your credit reports. In case you decide to freeze your TransUnion credit report, it will also go the extra mile to notify Equifax and Experian, which frankly is a big help especially in case of identity theft and credit fraud.
So, the next time you are sat wondering “where to get my credit score?,” think of these three giants that provide you with an annual credit score and credit report for free once each year. However, if you are looking for more frequent updates, you can subscribe to their services and receive your monthly updates.
Did you know that you have more than a single credit score? Agencies calculate your credit score based on the data in your credit reports. If you are wondering, “where to get my credit score?,” there are three main credit reporting agencies. These can have different credit scores for you if your information on each of their credit reports is different. Also, these agencies charge a fee to reveal your credit score.
Recently, it has become easier to track and get hold of your credit score without paying any fees. You can get it from your credit card company, your loan provider, and even from a non-profit counselor. Here are a few tips you can use to check your score.