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One of the ways to add a little stability and safety to your investment portfolio is to create a CD ladder that can help you keep your money in an investment that offers safety and relative liquidity. However, that safety and liquidity come with a couple of downsides.The guaranteed returns mean that banks want to ensure that you will keep your money with them, and returns are generally fairly low.

There are two main problems that many have with investing in CDs:

1. “Relative liquidity” doesn’t mean “total liquidity”: Most CDs have penalties for early withdrawal.
2. Low rate of return: Because cash is safer, it has a lower rate of return, meaning that you won’t get very high yields.

There are ways you can get around these particular problems. But you might have to do a little shopping around.

Penalty free CDs

There are some banks (but not very many) that offer penalty free CDs. These CDs allow you to withdraw some or all of your money without paying a penalty. If you are concerned about the liquidity of your money, especially if you are planning on using a CD ladder as part of an emergency savings fund, a penalty free CD can be a good way to ensure access to your money.

However, you should only do this if liquidity is your main concern. This is because some banks offer lower yields on penalty free CDs than they do on those with penalties attached. Another concern is the fine print. Some penalty free CDs are only penalty free for a limited period of time, and there are other conditions that might need to be met. Be sure that you understand the real story behind “penalty free” at the bank you are working with.

Brokered CDs

Another way to get more from your CDs is to purchase through a broker. A broker can help you find the best rates and choose from a wider range of options. In many cases, you can actually find higher yields when you get a brokered CD. However, it is important to note that many brokered CDs do not have set rates, so it is possible that the yield fluctuates as interest rates do.

You can also get around the penalties charged on some CDs when you go with a brokerage CD. This is because there is a secondary market for CDs. In some cases, you can sell your CD and avoid the penalty. You might not get as much back for the CD as you would like, but it is often still more than you would get if you paid the penalty for an early withdrawal. Plus, if you are interested in buying CDs on the secondary market, as investments, your broker can help with that as well. Just remember that you will have to pay the broker.

Be careful with brokered CDs, though. While many of them are FDIC insured, not all of them are. Some brokerage CDs do not come with FDIC insurance, and it is up to you to double check to make sure that you protected. After all, one of the main reasons for investing in CDs is for their safety, and the guaranty that you will at least get your principal back. (Of course, you have to be aware that amounts of more than $250,000 — and $100,000 after December 31, 2013 — aren’t insured by the FDIC.)

Bottom line: CDs can be a great part of your investment portfolio. They provide a way to help you maximize your cash rate of return, while still offering a degree of liquidity and safety. You can get even more from your CDs if you shop around, looking for penalty free options, or by using a broker. Just make sure you understand the fine print.

Here at Peak Personal Finance, we know that online banking is a matter of convenience and, for many, a necessity. So we like to look at how online banking performs at banks across the country.

JP Morgan Chase Bank is one of the “big four” banks in the United States and perhaps the only one that has weathered the worst financial crisis with minimal losses. Chase Online banking is the epitome of the company’s financial prowess. Chase maintains a highly active and elaborate website where it offers almost all of its financial products through paperless online procedures.

Chase bank online banking has three main sub-sectors or areas of business that are covered on its website. The main sector is that of general banking and savings. Chase electronic banking and related features include money transactions besides general features including bill payment, account statements and other features. Current and saving accounts and other banking features are available in this section.

Chase internet banking offered on the company website offers the loans and insurance services as the second main feature of the website. Customers can go through all the procedures to apply for loans and insurance policies.

The third section of online banking is related to brokerage and other stock-related features. The company website offers complete services and assistance to customers that are looking for brokerage and stock trading services of JP Morgan.

Online help is available 24/7 through chatting features along with a conventional phone helpline. Detailed guidelines, accounts guides and informational materials are neatly displayed on the company website. JP Morgan has also started mobile banking with a slew of services that customers can access on their mobile phones.

Here at Peak Personal Finance, we like to look at what’s going on in savings plans, including CD rates, so today we’re going to look at the latest from ING Direct.

ING Direct CD rates are relatively lower than the market average but the company enjoys customer trust and many prefer to deposit their money with this premium bank.

ING Direct offers a complete online solution to customers, through its main website, where they can open their accounts by following simple procedures. Following are ING Direct CD rates as of February 18, 2010.

ING Orange CD Rates for an investment of six months returns an APY of 1.00%. A 9-month CD also offers the same rates at 1.00%. A 1-year CD at ING Direct returns an APY of 1.25%. An 18-month CD also returns an APY of 1.25% for a basic investment of $1,000.

ING certificate of deposit rates for a 2-year CD are currently accrued at 1.50%. They are the same for a 30-month CD at 1.50%. Three year CD also offers an APY of 1.50%. A 4-year CD offers an APY of 1.75% and a 5-year CD also offers an APY of 1.75%.

Maximum APY at ING is available for the four and five years CDs. ING Direct does not offer the highest rates in CD investment but still have managed to gain currency with customers. CD rates are subject to change and the bank may increase or decrease these rates. New rates will be applicable on new CDs only though penalties remain uniform in case of user violation irrespective of the date of purchase of these certificates of deposit.

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One of the most basic ways to save money is to invest in cash through some sort of savings account. This is considered a rule of personal finance, and many of us save money this way, using a traditional savings account or an online high yield savings account to house our emergency funds and even to help build our retirement savings. Because cash is relatively safe and liquid, it is often considered a cornerstone of a portfolio that needs a little protection. And, of course, cash is ideal for emergency funds since it is easily accessible.

However, cash earns a very small return as a result of its safety and liquidity. Even a high yield savings account — especially right now with the low rates — is hard pressed to beat inflation. You can earn a little more, though, if you consider CD rates. And you increase the liquidity of these investments through the strategy of CD laddering.

CDs: Higher cash returns

You can get higher cash returns when you use certificates of deposit. These cash investments often return between 2% and 6% annually, depending on how much you put into the CD, and how long you have the CD for. Some CDs might still be unable to beat inflation, but your returns will be eroded less than if you went with a straight savings account.

It is important to be aware of possible penalties, though. Most CDs come with high fees if you withdraw your money before the term expires. So as you put together your CD investing plan, make sure that you are careful to consider this option.

CD laddering

One of the most popular ways to use CDs is through laddering. In this strategy, you carefully stagger the CD terms so that you regularly have access to your money. How you do this can be done based on your goals for the cash you are using:

1. Long-term savings CD ladder: If you have a longer period of time, you can set up a five-year (or seven-year) CD ladder. Divide the money you have in your savings account into equal amounts. If you are concerned about have access to immediate funds, leave a couple thousand in your savings account. If you have $10,000, and you decide to leave $2,000 in your account, that leaves $8,000 for your CD ladder. Put $1,600 ($8,000/5) into each CD. One CD should have a maturity of one year, the next should have a maturity of two years, and so forth. Your five-year CD will probably earn the highest return. After the first CD matures in one year, roll that money (and any extra you might have) into a new five year CD, to mature in year six of your plan. As you can see, every year, a CD matures, and you can get access to the money if you need it, or you can put it in a longer term CD with the higher yield.
2. Short-term emergency CD ladder: If you want more immediate access to your money, you can apply the same principle on a shorter time scale. Get CDs in three-month, six-month, nine-month and 12-month intervals. The yields won’t be as high as when you do a long-term ladder, but most of them will likely beat your savings account yield (at least for now). After the three month CD matures, roll it into a 12-month CD, and you can keep the ladder going. And you know that every three months you will have access to that money if an emergency situation arise.

A CD ladder can be a good way to organize your cash savings. Just remember that in order to truly overcome the ravages of inflation, you will have to have other investments; you can’t rely solely on cash. But a good CD laddering strategy can help you get a little more out of what cash you do have.

We here at Peak Personal Finance are happy to present Volume 13 of the Personal Finance News Carnival.  Also, since the Carnival has now been active for over one year, in the world of the internet that makes us one of the ten or so oldest finance blog carnivals that is still active.  We hope that you enjoy the personal finance articles below as much as we did.

Credit and Debt

CreditCardAssist presents Card Issuers Step Up for Haitian Relief Efforts posted at Credit Card Assist, saying, “Credit card issuers have stepped in to assist with Haitian relief efforts by waiving interchange fees on relief donations and donating money to international relief organizations.”

oneadvice presents Single Parents Debt Advice posted at One Advice, saying, “Sometime money can be a struggle for single parents. But knowing how to make the most of single parents debt advice means that you can be back in control of yoru finances…”

JJF presents IRS Imputed Interest Rules | IRS Tax Advice posted at The Personal Finance Blog.

Keith Morris presents What the Credit Card Changes Mean to You posted at LifeTuner, saying, “In 2009, Congress passed a new credit card law with much fanfare. Consumer protection groups generally praised the legislation as helping consumers. But what does that mean for you and me on a practical level?”

The Financial Blogger presents A Car Insurance Story posted at The Financial Blogger, saying, “I am often the first one to step up and tell the world how bad customer service was at one place or another (remember my Roger’s Story, my friend’s fight with Bell or my Baton Rouge’s friend story?… go see them, you’ll have a good laugh ). But when it is the time to recognize a company is going above what we can reasonably expect, I will also step up and tell everyone.”

Patrick @ Military Money presents Should You Use a HELOC to Consolidate Credit Card Debt? posted at Military Finance Network, saying, “Should you trade unsecured debt for secured debt? The risks are big, but the potential savings could be huge. Find out the best way t consolidate your credit card debt and save money on interest rates.”

Education

David de Souza presents Tax Rebate Forms ? Tips and Advice posted at UK Tax Blog, saying, “Some tips and advice for when you complete your tax rebate forms this year.”

BWL presents Financial Peace University Review posted at Christian Personal Finance, saying, “A look at week one of Dave Ramsey’s Financial Peace University”

Investing

Rob presents Roth IRA Rates posted at Stock Tips.

The Investor presents How to run your portfolio like a hedge fund posted at Monevator.com, saying, “People pay a fortune to hedge funds that claim to reduce the risks of investing – but can you do it yourself?”

stockman presents Chart Base Patterns posted at Learning Stocks, saying, “A key to being a succesful stock trader is learning how to spot chart base patterns and when to buy a stock. A chart base often acts as a foundation for stocks to “jump” off of; to begin a large share price increase.”

Hoven Keith presents Ultimate Guide To Biotech ETFs posted at ETFdb, saying, “ETF investors looking to gain exposure to the biotech sector have a number of options to consider–five to be exact. While there are some similarities between these funds, there are also some significant differences that result in unique risk and return profiles and diverging returns. In this article, we profile each of the ETF options, highlighting the pros and cons of each.”

Intelligent Speculator presents Hell has frozen over posted at Intelligent Speculator, saying, “Eric Schmidt, the Google CEO had hinted on his Twitter page that “Can’t wait to watch the Superbowl tomorrow. Be sure to watch the ads in the 3rd quarter (someone said “Hell has indeed frozen over.“). Why? Because Google is not a company known for spending money on advertising, very far from it.”

FIRE Getters presents Want To Be A Millionaire? Follow the YAWN Philosophy posted at FIRE Finance.

Real Estate

lifestyles presents How 15 Rent Houses Can Retire You Faster than a $1 Million 401k posted at Lifestyles Unlimited Real Estate Investing and Mentoring, saying, “Brian Lee of Lifestyles Unlimited determines wealth by “how long a person can live on their passive income.” He compares real estate investing to the “conventional wisdom” plan of conservative investments and 401ks.”

Braudis Lee Pegram presents How To Purchase Commercial Real Estate-Revisited posted at The koH Resources Blog.

Ki Gray presents Determining Whether to Refinance Your Mortgage posted at National Real Estate Blog.

The Financial Blogger presents Canadian Mortgage Rules To Change Says Flaherty posted at The Financial Blogger, saying, “The explanation is quite straight forward: while the interest rates are not going to jump from 2.25% to 5% shortly and the housing market keeps reaching new high from months to months, the Canadian government had to find a solution to slow down the housing market.”

Saving

BankShout presents 1-Year CD Rates Slide Again posted at BankShout.

jim presents How to Build a Zero-based Budget posted at Blueprint for Financial Prosperity.

Debt Hawk presents Chase Bank Business Checking Account Bonus $100 posted at Online Banks Blog, saying, “The previous Chase Bank Business Checking Account Bonus $100 expire on January 15, 2010. The offer was only dead for 15 days when Chase reinitialized the bonus offer on February 1, 2010. This offer is not advertised on the Chase home website for some reason.”

Joe Johnson presents How to Be Fashionable on a Budget posted at Fashion Merchandising, saying, “Easy to follow tips about saving money and preventing impulse buying.”

That concludes this edition. Submit your blog article to the next edition of personal finance news carnival using our carnival submission form. Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: personal finance news carnival, blog carnival.

That’s it for this edition of the carnival.   Be sure to submit your blog’s personal finance articles to the next edition of the Personal Finance News carnival using our carnival submission form.  Past posts and future hosts can be found on our blog carnival index page.

Technorati tags: personal finance news carnival, blog carnival.

Banking today is about more than just having a reliable place to put your money. It’s also about convenience and easy access. Today at Peak Personal Finance, we’re going to talk about online banking at Wells Fargo Bank.

Wells Fargo is one of the four major banks in the United States and offers a diverse range of financial products. Wells Fargo Bank online banking has become a major part of the company; it is in fact the main resource center for people that are interested in using the services of the company.

Wells Fargo online banking is done through the website of the company. Wells Fargo has created a massive website with easy-to-use features and crisp and clear Graphic User Interface.

Wells Fargo banking online offers a variety of services that are provided over the internet. Some of the most popular ones are described below.

Online account opening is an important feature of Wells Fargo Bank. Under this feature, customers can open all types of accounts including general checking, savings, certificates of deposit and money market accounts. The procedure of account opening is simple as the customer has to complete a basic online form with his/her address, zip code, phone numbers and other details. Payment can be easily made through credit cards.

Wells Fargo interest rates are determined after taking into account the general market conditions and other factors, including federal regulations and global economic situation. Wells Fargo post all of its interest rates on its online banking sites and also elaborates the rates for CDs, savings accounts, checking accounts, money markets and other investment options. Wells Fargo maintain an active online chatting feature along with 24/7 helpline.

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When you are in financial trouble, it can be difficult to decide which obligations to pay, and which to let slide. In a perfect world, of course, you wouldn’t have to make this decision. But many are finding themselves in this heart-wrenching situation — even if they made all the right moves before buying a home. The economic climate has led to a lot of reductions in income due to fewer hours, fewer benefits and even outright job loss. As emergency funds (for those who have them) run low, and as the bills pile up, which of those bills to pay becomes a matter of serious thought. One thing to consider, though, is that you should put your mortgage payment near the top of that list.

Do you want to keep your home?

One of the first questions you need to ask yourself before you make your bill payment priorities is whether you plan to fight to keep your home. This is a very serious consideration. But an important one. Do you think that you have the resources to keep your home? If you have an emergency fund, and some income, and can maybe even get some through one of the loan modification programs available, and you want to keep your house, it becomes your main priority.

You will need to decide what you are willing to do to keep your home, and focus your payment priorities around that. Talk to your lender to see what you can work out, and then look for opportunities to earn income that can help you in your goal to keep your house. If you decide that strategic default is out of the question, deciding against foreclosure and even deciding against trying for a short sale, your efforts should focus on keeping your home.

Setting up payment priorities

One of the first things you need to do when setting up payment priorities is to consider your needs vs. your wants. The obligations you pay should hinge first on your needs: mortgage payment (shelter), groceries (food) and the necessities of life, like electricity and heat. You should practice frugality in these areas, such as buying food ideal for preparing homecooked meals and conserving energy where you can. Items that are wants should be moved toward the bottom of the list. Entertainment, unnecessary clothing and even some activities need to be cut.

Another concern many have is their credit card debt. Should credit card payments be made instead of mortgage payments? Actually, no. If it comes down to a decision on making your mortgage payment or making the credit card payment, make the mortgage payment. Your credit card debt is unsecured, so companies can’t take your home in order to recoup some of their losses. They can sue for the amount you owe down the road, but they can’t take your house. If you miss a mortgage payment, though, the bank can take your home. If you have decided that you want to do what you can to keep your house, that means that when a payment decision has to be made, you make your mortgage payment. And you make it in full.

A general rule of thumb is this: If you have to make the decision, pay the secured debt first. Secured debt can lead to the loss of property that you rely on, so your obligation to it should be discharged first. Unsecured debt is not so attached to property, and if you have to let something slide, that’s what it should be. (But, of course, it’s always best to try to avoid debt — and to pay all of your obligations.)

Today at Peak Personal Finance, we’re going to continue looking at certificate of deposit rates for your savings plans.

CD rates, especially with higher Annual Percentage Yields, are considered as the basic factor in determining the health of a financial institution. Customers like to do business with banks and financial institutions that offer the best rates and have other perks and benefits. The current cd rates offered by HSBC are quite the lucrative ones, especially if compared with other products.

HSBC CD Rates for 3 months investment are currently estimated at 0.15% with a minimum investment of $1,000. HSBC certificate of deposit rates for 6 months certificate are priced at 0.50%. A 9-month investment in these certificates yields 0.75% APY.

Standard investment of one year offers an APY of 1.25%, currently one of the best CD rates, while the minimum deposit remains the same at $1,000. A 2-year investment offers a lower return at 1.10% APY. HSBC offers a complete online solution for the opening of CD accounts. The bank offers a simple registration form that is necessary to be completed before the opening of accounts. Usernames and passwords are generated through this form that is later used for gaining entry into the secure features of HSBC website.

HSBC also offers branch and telephone deposit CD accounts but they offer lower rates. A 1-year investment only yields 0.55% whereas two to four year investments returns 0.75% APY. CD rates for investments of four years to 10 years are slightly higher at 1.01%. Customers with Premium checking accounts will receive higher APY for these certificates. They will receive an APY of 2.00% for an investment of 4-10 years whereas 2-4 year investment certificates will return 1.05%.

Here at Peak Personal Finance, we like to keep you up to date on the latest information for maximizing your financial life. Targeted savings plans, like a certificate of deposit account, are a part of that. Let’s look at E-Loan CD rates today.

CD rates at E-Loan are divided into two categories. The company offers better APY for investments greater than $10,000 while rates are lower for investments below this benchmark. E-Loan also offers the standard CD rates on investments that are tenure-based, ranging from one month to six years.

The best CD rates at E-Loan are currently available for a 6-year CD; it returns an APY of 2.60% if the investment is at least $10,000. A 5-year CD returns an APY of 2.50% whereas a 4-year CD returns 2.05%.

E-Loan CD rates for an investment of three years return an APY of 1.75% whereas a 2-year investment returns an APY of 1.50%. An 18-month CD returns an APY of 1.25%.

E-Loan certificate of deposit rates for an investment of one year return an APY of 1.00%. A 9-month CD returns an APY of 0.85% and an investment in 6-month CD will yield 0.75%. A 3-month CD at E-Loan will return an APY of 0.40%. An investment of two months will yield 0.30% whereas a one month CD returns an APY of 0.25%.

Minimum investment required for E-Loan CD is $10,000. This is relatively a higher amount as compared to other companies that do not ask for thousands of dollars. Nevertheless, E-Loan offers some of the best CD rates in the market. The bank applies penalties and deductions in case of early withdrawals and other rules of banking are also applicable on these certificates.

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You are probably getting your taxes together, trying to figure out how much you owe for 2009. However, you might not be aware of these 5 tax breaks. While you don’t want to get too carried away with deductions and credits, there are some little-known tax breaks that you might be eligible for. Here are 5 tax breaks that you might be able to take advantage of on your 2009 return:

1. Making work pay: Remember earlier in 2009 when Congress passed that economic stimulus package and President Obama signed it into law? One of the provisions was that workers would get a tax credit, up to $400 for individuals and $800 for married filing jointly. While most people have it automatically taken out of their 9-5 paychecks, the credit is also available for those who are self-employed. Double check withholdings from traditional jobs to make sure that everything is in train, and see if you have a tax credit coming when you fill out Schedule M.
2. 2010 Haiti donations: Even if you have donated to the Haiti relief effort this year, between January 12 and February 28, you can actually deduct it on your 2009 taxes. If you donate less than $250, you need bank records, and if you donate more than that, you will need a receipt from the charity. Just hurry; you are running out of time to deduct it from 2009. Of course, even if you don’t donate by the end of this month, you will be able to make donations for deductions on your 2010 taxes.
3. Expanded standard deductions: There are a host of new deductions that extend standard deductions, so you might end up with more deductions than you thought — without having to itemize. Some of these include state and local property takes, sales and excise taxes on new vehicles and certain deductions for disabilities.
4. Job search expenses: If you racked up expenses related to a job search in 2009, you might be deduct some of them. You can deduct some travel expenses, fees paid to job search services and other expenses. You do need to be looking for a job in the same field. If you have been taking unemployment, you are exempt from paying income taxes on the first $2,400 in benefits that you collect.
5. Supporting struggling relatives: Maybe you are doing okay financially, but your relatives are not. If you are helping struggling relatives, providing enough support that they are considered dependents, you might get some tax breaks.

There is also a one-time tax credit for retired government employees who did not have Social Security taxes taken out. There are also new tax benefits for education expenses and extensions of tax credits for energy efficiency upgrades to your home. And, of course, nearly everyone knows about the home buyer tax credit. All of these can add up to significant tax savings if you qualify.

2009 saw around 300 changes to tax law, so there are a number of opportunities to save a little money and reduce your tax liabilities. You can visit the IRS web site for more information, or consult a tax professional who can help you figure out what tax breaks you have coming to you.