High yielding savings accounts are a great way to save some money for purchase goals and investment which require a small or a moderate sum of money. There are several companies that offer 5% interest savings account, which is an extremely lucrative deal for someone who is trying to build a concrete financial portfolio. But such high yielding accounts require high amount of minimum balance. This means that you need to cleverly balance your overall finances so that it doesn’t affect your day to day spending activities.
It is obvious that a high yielding savings account is a worthwhile deal, but before you make any major financial commitments there are certain things that require your serious consideration.
Reputation of the financial institution
Firstly, research about the financial institution’s legal validity and image. Before you hand over your hard-earned money to them see if have they lived up to the consumer expectations in the past. Check online reviews or have a word with a fellow investor who has already had an experience with the high interest savings program. If you have a financial adviser, please consult them to gain more clarity on your potential investments.
FDIC Insurance
When you are investing in a high interest savings account, your required minimum balance would be higher than usual. Therefore, make sure that the institution you’re dealing with is insured by Federal Deposit Insurance Corporation. The FDIC in simple words covers the depositor’s money in the banks. This safeguards your financial interests in the long run if something unfortunate were to happen.
Fiscal stability
You need to make sure that your overall financial health is sound. For example, if you are going to be needing this money frequently you should opt for a regular savings account. Withdrawal procedure for high yielding accounts can get restricted. So, think twice before investing in a high interest savings account as your accessibility to some extent will be limited. Ultimately it shouldn’t affect your daily essential spending.
Miscellaneous charges
Depending the financial institution, there can be other charges for monthly maintenance and for inactivity. It is imperative that you thoroughly inquire about such expenses so that they don’t cause any inconvenience later.
Purpose
Some high yielding accounts might provide you with an ATM card, this can expand your spending capacity. But try and opt out from this feature as it can hamper your savings habit. Try to accommodate this account for your future investments like college tuition, home renovation, vehicle purchase, health reserve, etc. or for emergencies purposes.
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.