Tag: savings

Real Interest Rate definition explanation

What is Real Interest Rate?
An interest rate that has been adjusted to remove the effects of inflation to reflect the real cost of funds to the borrower, and the real yield to the lender. The real interest rate of an investment is calculated as the amount by which the nominal interest rate is higher than the inflation rate.

Real Interest Rate = Nominal Interest Rate – Inflation (Expected or Actual) Read more for examples and further explanation including related video clips and also comments
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Value Date definition explanation

What is Value Date?
A future date used in determining the value of a product that fluctuates in price. Typically, you will see the use of value dates in determining the payment of products and accounts where there is a possibility for discrepancies due to differences in the timing of valuation. Such products include forward currency contracts, option contracts, and the interest payable or receivable on personal accounts. Also referred to as “”valuta””. Read more for examples and further explanation including related video clips and also comments
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Transaction Deposit definition explanation

What is Transaction Deposit?
A banking deposit that has immediate and full liquidity, with no delays or waiting periods. Transaction deposits can be transferred into other cash instruments, have electronic payments authorized against them, or otherwise be transacted by the financial institution solely at the request of the account holder. Read more for examples and further explanation including related video clips and also comments
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Money Market Account definition explanation

What is Money Market Account?
A savings account that offers the competitive rate of interest (real rate) in exchange for larger-than-normal deposits.

Also known by the acronym “”MMDA””, which stands for “”money market demand account”” or “”money market deposit account””. Read more for examples and further explanation including related video clips and also comments
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Bank Rate Monitor Index definition explanation

What is Bank Rate Monitor Index?
An index of money market interest rates paid on deposits at 100 banks in the United States. The index is comprised of the average of interest rates paid on different types of consumer savings on deposit. Read more for examples and further explanation including related video clips and also comments
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Pension Plan Administrator definition explanation

What is Pension Plan Administrator?
An individual responsible for managing the day-to-day affairs and the strategic decisions involved with a group’s pension fund/plan. More specifically, the plan administrator ensures that money is being contributed into the fund, the proper asset allocation decisions are made and that payouts are promptly distributed among all qualified plan participants or beneficiaries. Read more for examples and further explanation including related video clips and also comments
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Post-Retirement Risk definition explanation

What is Post-Retirement Risk?
The potential risks to financial security that a retired individual could encounter. Post-retirement risks can result in unexpected costs and expenses or lower income, which can jeopardize even the best-laid retirement plans. Read more for examples and further explanation including related video clips and also comments
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Deferred Annuity definition explanation

What is Deferred Annuity?
A type of annuity contract that delays payments of income, installments or a lump sum until the investor elects to receive them. This type of annuity has two main phases, the savings phase in which you invest money into the account, and the income phase in which the plan is converted into an annuity and payments are received.

A deferred annuity can be either variable or fixed. Read more for examples and further explanation including related video clips and also comments
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Married Filing Separately definition explanation

What is Married Filing Separately?
A filing status for married couples who choose to record their respective incomes, exemptions and deductions on separate tax returns. In most cases, married filing jointly offers the most tax savings, especially when the spouses have different income levels. However, there is a potential tax advantage to filing separately when one spouse has significant medical expenses or miscellaneous itemized deductions. Read more for examples and further explanation including related video clips and also comments
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