How Does a Money Market Account Work?

If you’ve made your cash reserves and simply have saved in a traditional savings account, maybe you need to reconsider how you’re storing your cash. Opening a money market account is an advanced step from a savings account once you’ve stored a certain amount of cash.

However, this type of account comes with certain pros and cons, therefore, it’s necessary to understand what it is and how it works. Let’s explore more with Mehul Mathrani.

What does a money market account do?

The most interesting aspect of opening a money market account, mainly compared to a savings account, is that it normally offers a higher rate of interest. Also, it offers you the flexibility to access your cash as you need it.

Money market accounts considered a low-risk way to accumulate your money, similarly like a regular savings account, as it offers FDIC-insured up to $250,000. In case you choose a credit union to open an account, your funds are correspondingly insured by the National Credit Union Administration.

Your interest can accrue day-to-day, monthly, quarterly, or annually, it all depends on your financial institution. The more regular the accrual, the more money you’ll make over time, and all thanks to the compounded interest.

To credit cash into your money market account, you can choose any method you use with other savings accounts, which includes electronic transfer. In case your account is with a financial institution that has physical branches nearby, you can also choose check and cash deposits.

Another benefit in comparison to a savings account is that you will get both a debit card and a chequebook that is associated with your account, letting you make withdrawals at your convenience.

This preserves your funds enormously liquid so you can easily use them during a financial emergency. However, it comes with some limitations on how frequently you can make withdrawals, so make sure to keep yourself updated with the restrictions that occur when you choose a money market account.

Check Out the best money market accounts for 2019

Let’s explore 2019’s best money market accounts. You will find a huge variety of banks offering diverse minimum deposits and a few of the most competitive APYs on the market. Here is a brief overview of Mehul Mathrani top picks to help get you started.

BBVA Compass

BBVA Compass at present offers an APY of 1.80%. You can get your account open online with a $25 minimum opening deposit. They permit you up to 6 withdrawals per month charges free. You can also take the benefit of their award-winning mobile banking app and can do 24/7 access. It’s a great option for those who are just beginning to start their longer-term savings.

CIT Bank

CIT Bank is considered one of the lowest minimum balances as compared to other online money market leaders. It allows you to open your account with at least $100 and enjoy the benefit of a 1.85% APY. And above, there are no charges at opening or for monthly servicing.

AbleBanking

This is a money market account with allowing a low minimum deposit of $250 only. Combined with a 1.0% APY, it’s ideal for new savers. An added advantage is that you get same day transfers if you have one more AbleBanking account.

Ally Bank

Ally allow a money market account with 0.90% APY and everyday compounding interest. And not like most MMA, there’s no monthly fee, no minimum deposit, and the APY applies to all balance tiers.

TIAA Bank

The money market account holders at TIAA Bank (formerly EverBank) earn the benefit of 1.5% for the first year as one of the higher APYs. To be eligible, you required a $1,500 initial deposit from a non-TIAA Bank account. After the completion of the first year, your interest rate decline to 1.05% only.

Capital One 360

Your APY differs here as per your deposit amount. You’ll get a rate of 0.85% APY up to $10,000. Once you hit that edge, it increases to 1.60%.

Final Words

So, are you interested in opening a money market account? If yes then do not forget to consider these to top picks from Mehul Mathrani to get started as a beginner.

Originally Posted: https://www.allperfectstories.com/money-market-account-work/

How to Get a Business Loan

A business loan can be really convenient for the self-employed as these can be used for several purposes which include business expansion, meeting operational expenses, providing fresh working capital, purchasing inventory, etc. However, getting a loan is quite harder for the self-employed as compare to a salaried professional, as it involves higher risks.

Let’s explore a list of factors to keep in mind while applying for a business loan with Mehul Mathrani.

Prepare a good business plan

A well-framed business plan is advisable as it will help you in convincing the lender to grant you the funds. Your business plan should clearly define your project’s objective, marketing and development strategies, revenue generation plans, etc. Since lenders consider your revenue generation plans to analyze your business’ viability and repayment capacity, so make sure you have a strong revenue model that explains how you would be repaying the loan on time and your anticipated use of the funds.

Be ready with documentation

Even if you have a perfect business plan with well-explained goals, lack of proper documentation can lead to a complete rejection of your business loan application. Before applying for the loan, make sure that you carry all the required documents which the bank may ask for. Documents needed to complete the process include last few years’ KYC documents, entity’s proof, income tax returns, audit reports, bank statements, etc.

Check your cash flows

Your businesses’ cash flow forecasts play a great role in your business loan approval. A solid history of high revenue generation increases the company’s chances of getting the loan approved. In case your business has a weak history including irregular or low cash flows, you may either have to pay a higher interest or your loan application might get rejected. Therefore, before you apply for the loan, double-check the cash flow statements and forecasts to make sure that your cash flow statement would be enough to repay your loan along with the interest levied.

Look at other borrowing options

As different lenders have variable parameters to assess your business’ creditworthiness. Therefore, do not limit your loan applications to specific lenders. NBFCs, and Digital lenders along with banks, also offer a platform to compare and choose the right business loan and also the suitable lender.

Assess your creditworthiness

Banks and financial institutions consider personal as well as your business credit history while assessing a loan application. A lower credit score shows you as more likely to default and can prove to be unfavorable to your loan approval chances. Hence, it is advisable to evaluate both your and your business credit report to ensure that your loan application isn’t rejected due to lack of credibility.

Identify risks that lenders assess

When you apply for a business loan, make yourself aware of various traits which may be risky for you. Possibly, it includes weak accounting system, low vintage, repetitive defaults in credit history or irregular revenue. Ensure that your business is not considered risky due to the presence of any such traits.

Final Words

So, these are the few useful tips from Mehul Mathrani, to make your business loan application win-win.

What Things You Should Consider Before Investing?

Are you worried where to put money? Is it worth to invest in mutual funds, stocks, real estate etc.? Wherever you invest, it always make your money grow at a faster rate than it in a savings account. Actually, investing is the best way to save dough for something further onward in future says, Mehul Mathrani. However, every investment contains some risks. But not to worry. In this article, you will get some things that you should consider before investing in order to make your investment worthy.

Let’s have a look:

Are You Financially Fit?

This is actually important to know where you are financially. Fact is, it does not worth to invest money when you have a lot of debt and no saving for emergencies. Therefore, you should first focus on clearing up debt and saving for crises. Moreover, if your job is unstable, you have to think about six months to a year of saving. It is crucial to allow investment to grow.

Draw a financial roadmap:

The next step is to figure out your investing goals as well as risk tolerance. You can create financial roadmap either on your own or also take help of a financial advisor. In reality, there is no assurance that you will make money from your investment.

You should follow through an intellectual plan to gain monetary security after knowing the fact about saving and investment. And also enjoy the profits of handling your money.

Assess comfort zone in taking on risk:

Every kind of investment involve some degree of risk emphasis Mehul Mathrani. So, if you want to purchase securities like bonds, mutual funds, and stocks, it is vital to understand before you invest that you can lose some or all of your money. The reward for taking on risk is the possibility for the better investment return.

Understanding your investment options:

It is significant to comprehend that you will make more cash by leaving your money in a good mutual fund. While you can make money that way, it takes a good understanding of the stock market, a lot of time and real talent.

You may have somebody who wants to do this trading for you but continue with carefulness. Because it is too easy to lose it all. You can also consider different accessible choices including real estate.

Hire a financial planner:

Seeking the help of a financial planner is also a great option. A monetary advisor can help you figure out how much you need to save to reach your goals such as early retirement. He/she can also help you recognize the best type of accounts for the particular goals. For instance, 529 accounts for college savings or a basic investment account is options if you want to retire early.

These are some things given by Mehul Mathrani that investors must take into account. Considering these factors help you make the best investment decisions and grow your money.

Originally Posted: https://mehulmathraniofficial.wordpress.com/2018/07/09/what-things-you-should-consider-before-investing/