Parent Hack: Open CDs for your children and gift them at graduation. 10-15 years of growth will be substantial, even if you don’t contribute a dollar more from your initial deposit.
3) The math is simple - Take your initial deposit and multiply by the interest rate offered. If you open a $5,000 CD at 4.50% by the end of the 12 months, you’ll have $5,225.
The compounding interest will yield so much more than a savings account when you decide to cash out.
1) First, find a bank with competitive rates. It may not be your bank and that’s ok.
2 ) The longer the CD term, the more you can earn. So if you have funds to tie up for 6-12 months, consider opening a CD.
Certificates of deposits (CDs) are offering interest rates north of 4% right now. If you can afford to tie up some funds for a period of time, you can earn a little more than the monthly $.01 interest in a standard savings account.
As I’ve said before - this is a great opportunity to do a lot of things with those funds:
1) Build up your emergency fund
2) Invest in something or in yourself
3) Pay down your loans with no interest accruing
In. That. Order.
“I'm never going to apologize for helping working-class and middle-class families recover from the economic crisis created by the pandemic.” - President Biden (THIS!)
The pause is set to end June 30, 2023 and depending on the outcome, borrowers would be expected to begin payments 60 days later. (A little buffer to get your mind and money ready lol)
Next steps - 1) Check with your servicer for any changes and confirm your payment date and how much you owe. 2) Adjust your budget to accommodate payments and avoid making late payments.
Since this legal process could take weeks even months, borrowers should prepare to begin making payments towards the full amount owed come January 2023.
24 MILLION people signed up for loan forgiveness but a federal judge in Texas blocked the program leaving the Biden Administration to appeal the ruling. (Haters gon hate 🤷🏽♀️)