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Edited November 14, 2022
at 12:37 PM
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CIT Bank, our partner, offers the following benefits with their
13-Month Term CD.- No account opening or maintenance fees
- Daily compounding interest to maximize your earning potential
- FDIC insured
- See site for details
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$920 - ($920 x (25% + 9%)) = $607.2
You can use above example to plug in your real tax bracket percentages to get your own number. It's a bit difficult to show the calculation of interest on here but you can find interest calculator on web.
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It seems to me that the Tbills through fidelity are the best route, as they'll avoid federal/income taxes, right?
My only question. Is there a way to 'separate' their purchases? KidA has 5 tbills, KidB has 4. I don't; want to mix their earnings. Or do I just do some math at the end of things?
It seems to me that the Tbills through fidelity are the best route, as they'll avoid federal/income taxes, right?
My only question. Is there a way to 'separate' their purchases? KidA has 5 tbills, KidB has 4. I don't; want to mix their earnings. Or do I just do some math at the end of things?
T-Bills are taxable for Federal, tax free on the State level.
Best option for splitting up and tracking is opening a separate Fidelity account for each kid. If you want to retain full control, can set up as UGMA so you retain control until child is of age. Each kid will be the owner, but you will manage. Accounts will be in their SSN, so they will receive 1099s specific to their accounts.
Best option for splitting up and tracking is opening a separate Fidelity account for each kid. If you want to retain full control, can set up as UGMA so you retain control until child is of age. Each kid will be the owner, but you will manage. Accounts will be in their SSN, so they will receive 1099s specific to their accounts.
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250000
I opened one last week.
It takes one minute to open account, very minimal info is needed and 2-3 days to transfer funds.
Go on...
NON CALLABLE CDs: TODAY'S RATES
5.30% 3 months Non-callable CDs
5.30% 6 months Non-callable CDs
5.25% 9 months Non-callable CDs
5.25% 1 year Non-callable CDs
5.25% 3 years Non-callable CDs
4.60% 5 years Non-callable CDs
4.45% 5plus years Non-callable CDs
These rates were copied and pasted from Merrill Edge Website. And all agency bonds are FDIC insured.
What I like about Agency bonds is that you buy them from inception and you can always sell them when you want based on the market price and if you keep it to term you get what you signed up for. In addition, there is nothing to sign up for. It is the same way I buy stocks... I just got to my brooker account (Merrill Edge) and transfer money from my bank account... INSTANT and then buy the agency bond... INSTANT. No waiting, no credit check, no hit on your social and no opening another bank account. Everything is in one place.
I opened one last week.
It takes one minute to open account, very minimal info is needed and 2-3 days to transfer funds.
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