It sounds like a kind of financial self-help book for Millenials: The 90-Day Savings Account: Save Enough For Retirement in Just Three Months and Have Fun Doing It!
Actually, the ninety-day savings account is a short-term investment vehicle that kind of splits the difference between a regular checking account and other short-term savings vehicles, such as certificates of deposit. Passbook bank accounts, like checking accounts or savings accounts, don't offer much interest. Some don't offer any interest at all, or they more than cancel out any interest with offsetting fees. However, these accounts have advantages that outweigh the lack of return. You can withdraw funds as needed, keeping your assets liquid.
As an alternative landing spot for your short-time savings needs, you can put your money in investments like certificates of deposit, or CDs. These short-term vehicles offer (slightly) higher interest rates than bank accounts. However, you have to tie up your money for a certain period of time.
The ninety-day savings account provides liquidity like a passbook account. However, you typically receive a higher rate of interest compared to the nearly nothing that a common back account usually offers. It's called a ninety-day account because it exists for that length of time, locking in your interest rate. At the end of that period, you usually have the option to roll your money over into a new ninety-day account, with the interest rate resetting to whatever the new going rate is at that time.
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Finance: What is a Coverdell Education S...11 Views
Finance a la shmoop what is a Coverdell education savings account? Coverdell...[Man using a red umbrella]
nope not an umbrella for the farmer in the well what is a Dell anyway? uh no
different Dell remember farmer in the Dell? all right moving on
Coverdell was the senator who named this type of tax deferred savings account and
note it's tax deferred not tax free maybe that is you might put two grand a
year in this account and you don't pay tax on it this year it just gets
invested and it grows just like a 401k account and an IRA and a Roth more or
less but then when you withdraw the money you don't pay tax on it if you use [Cash withdrawn from ATM]
the dough for school that is for like private school fifth grade books and
uniforms or that no athletic scholarship in the Ivy League tuition at Princeton [Man walking towards college building and football hits his head]
Or the iPad app suite from shmoop yeah
you could spend it on us we'd appreciate it thank you if you don't spend the
money on education well then you get taxed in the normal way as if it's
ordinary income there are all kinds of restrictions in this plan like there's a [Restrictions appear]
max of two grand contributed per kid who benefits from it the dough has to be
distributed fully by the time the kid is thirty or go to others in the family for
education and if your family makes too much money like you work too hard you're
too successful well you might have to cover your own Dell yeah so yeah it's a [Man walking along with a Dell laptop]
great option for some and an excellent way to attend the school of your dreams
while temporarily staving off the taxes of your nightmares if you're really lost
or something to spend it on you know think of your friends here at shmoop...
we're happy to take your dough
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