Latest news with #Discover
Forbes
an hour ago
- Business
- Forbes
Discover To Increase CD Rates For A Limited Time: How You Can Take Advantage
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations. If you have a purchase looming on the horizon, it's time to take advantage of a hot new offer from Discover. The bank has announced a limited-time interest rate increase on its six-month certificate of deposit (CD) accounts, allowing customers to earn 4.20% annual percentage yield (APY). Discover has announced an increase in interest rate on its six-month CD account, raising it from 3.70% to 4.20% for a limited time. While the exact end date of the offer is unknown, consumers would be smart to take advantage of the offer before it ends. Discover CDs are more flexible than most, requiring no minimum deposit to open an account. Interest also compounds daily and gets added to the account monthly. In comparison, some of the best CDs on the market require minimums of hundreds to thousands of dollars to lock in a favorable rate. That said, the more money you put in, the more interest you'll earn. Six months is a short-term commitment, so to get the most bang for your buck, we'd frontload the account with as much as your budget allows. Remember that there are penalties for touching the funds before your CD matures; Discover charges three months' simple interest for early CD withdrawals with terms of less than a year. A CD is a savings account that allows consumers to earn interest at a fixed rate over a predetermined period. The tradeoff is that users have limited access to their funds, unlike most savings accounts where withdrawals are easy and do not incur a penalty. CDs are lucrative for those saving for a big-ticket purchase, like a home or a car, or those with disposable funds they'd like to grow. When choosing a CD , note its compounding schedule, which is the key to your profit. Some CDs compound interest daily, while others compound monthly. The more frequent the interest compounds, the more you stand to earn. Consumers may opt for a CD over a high-yield savings account if they do not require access to their funds for a foreseeable period. While both accounts typically offer higher interest rates than traditional savings accounts, high-yield accounts come with interest rates that fluctuate based on market conditions and the Federal Reserve's benchmark rate. CDs, however, lock in an interest rate over a fixed term, which can guarantee a higher return when saving for a goal with a specific timeline. High-yield savings accounts are better used for building an emergency fund or saving toward goals without a fixed deadline. Some banks may offer more lenient or stringent terms if you anticipate emergency withdrawals, but we'd advise opening a CD only if you're sure the funds can stay put and grow. When picking a CD, make sure it is federally insured. The Federal Deposit Insurance Corporation (FDIC) insures up to $250,000 per depositor, bank and ownership category, while the National Credit Union Administration (NCUA) insures individual accounts at credit unions for up to $250,000. When you invest in a CD, how much you earn depends on how much you deposit upfront, since you typically can't add more money during the term. If you have a long-term savings goal and want to earn a specific amount of interest from a CD, use Forbes Advisor's CD calculator to run the numbers in advance. It will help you estimate how much you'll receive when the CD matures. For example, if you deposit $10,000 into a six-month CD with a 4.00% APY compounded monthly, you'll earn $198.04 in interest by the end of the term. Now say you deposit $20,000 into a CD with the same terms. You'd earn $396.08, or double the interest thanks to double the deposit. No matter how much you choose to invest, make sure it's an amount you can afford to set aside for the entire term. Many banks charge penalties for early withdrawals, and the goal is to earn interest, not lose money from your deposit. Read more: 10 Best CD Rates Of July 2025: Up To 4.50% APY
Forbes
4 hours ago
- Business
- Forbes
Will Capital One Stock Beat Upcoming Earnings?
Photo illustration byCapital One Financial (NYSE:COF) is scheduled to announce its Q2 2025 results on Tuesday, July 22, representing its first earnings report since finalizing the significant acquisition of Discover in May. This all-stock agreement established the largest U.S. credit card issuer by outstanding balances and has positioned Capital One as a vertically integrated payments giant with its own network. Although the effects of the merger may not be immediately reflected in this quarter's results, we will be attentive to any updates regarding integration progress, realization of synergies, and direction of strategy. The company has projected approximately $2.7 billion in annual synergies by 2027. Revenue for the quarter is expected to be around $12.7 billion according to consensus estimates, with earnings anticipated to be $3.56 per share. This projection is supported by increased net interest income from higher card balances as well as escalating interchange fees. We will also be looking for updates on the company's outlook. While the credit card sector has performed well in the post-pandemic landscape, recent tariffs enacted by President Donald Trump are impacting global trade and may affect consumer spending and travel. The company holds a current market capitalization of $140 billion. Revenue over the past twelve months (before the Discover acquisition) was $40 billion, resulting in a net income of $4.9 billion. The outcome will largely depend on how the results compare to consensus expectations; however, understanding historical trends can tip the odds in your favor if you are an event-driven trader. There are two approaches to achieve this: either grasp the historical trends and position yourself ahead of the earnings announcement, or analyze the correlation between immediate and medium-term returns after earnings and adjust your position accordingly post-release. With that in mind, if you are looking for upside with less volatility than that of individual stocks, the Trefis High Quality portfolio offers an alternative – it has outperformed the S&P 500 and generated returns exceeding 91% since its inception. See earnings reaction history of all stocks Capital One Financial's Historical Odds of a Positive Post-Earnings Return Here are some observations regarding one-day (1D) post-earnings returns: Further information on 5-Day (5D), and 21-Day (21D) returns post earnings is summarized along with the statistics in the table below. 5-Day (5D), and 21-Day (21D) returns post earnings Correlation Between 1D, 5D, and 21D Historical Returns A relatively lower-risk strategy (although not effective if the correlation is minimal) is to understand the correlation between short-term and medium-term returns following earnings, identify the pair that has the strongest correlation, and carry out the appropriate trade. For instance, if 1D and 5D demonstrate the highest correlation, a trader can position themselves 'long' for the subsequent 5 days if the 1D post-earnings return is positive. Here is some correlation data based on both 5-year and 3-year (more recent) histories. Please note that the correlation 1D_5D refers to the relationship between 1D post-earnings returns and subsequent 5D returns. Correlation Between 1D, 5D, and 21D Historical Returns Learn more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all three: the S&P 500, S&P mid-cap, and Russell 2000), generating strong returns for investors. Separately, if you seek upside with a steadier ride than an individual stock like Capital One Financial, consider the High Quality portfolio, which has outperformed the S&P and achieved returns exceeding 91% since its inception. Invest with Trefis Market-Beating Portfolios See all Trefis Price Estimates
Yahoo
a day ago
- Business
- Yahoo
Ramit Sethi: 7 Signs You're More Financially Successful Than You Think
According to a Discover Personal Loans survey, 86% of respondents reported being at least occasionally concerned about their finances in 2025. Many felt that expenses and inflation got in the way of their financial success in areas like paying off debt and preparing for the unexpected. Trending Now: Check Out: If you're living with this uncertainty or feeling like others are doing much better, look at where you really stand, since you might be pleasantly surprised. In a YouTube video, money expert Ramit Sethi shared these seven indicators that you're more financially successful than you think you are. Having a Six-Month Emergency Fund A 2025 Vanguard study found that a $2,000 emergency fund boosts your financial well-being by 21% and you get another 13% gain with at least three months of expenses saved. That's no surprise given the financial safety net and peace of mind that having substantial savings provides. Sethi said you're in good shape with six months of expenses saved, though he recommended 12 months in very unstable times, such as during the recent tariff confusion. This money will help in times of crisis, such as a job loss or big expense and give you some margin for decisions. Discover Next: Being Free of Credit Card Debt 'If you have paid off all your credit cards or, frankly, you never let a balance accumulate, you are in very good company,' Sethi said. He discussed how this shows you know how to control your spending and not get stuck racking up interest while you only make minimum payments. Being free of credit card debt also makes it easier to invest in your future. Sethi recommended a debt payoff plan if you haven't achieved this goal yet. Regularly Investing 10% of Income According to Sethi, you've reached a major wealth-building milestone if you automatically put at least 10% of your pay toward investments. Ideally, you developed this habit while young so that the contributions and compound interest can pile up over the decades before retirement. Even if you don't feel like you're accomplishing much yet with investing, Sethi explained that the long-term results are key. For example, you might be 25 years old and contribute just $300 per month. While this sounds like little progress, if you're getting a 10% return and keep up contributing that amount through age 65, you'd have about $1.6 million. Making Last-Minute Decisions Without Panic While saving for big expenses is smart, opportunities and surprise costs often still pop up. Whether you have the chance to travel with friends at the last minute or need a sudden car repair, being able to calmly make the decision and afford the cost indicates being financially successful and having options. 'You have created enough financial slack in your life that one surprise expense is not going to throw you off plan and that is a powerful place to be,' Sethi explained. Spending 15% of Income Without Guilt Sethi described joyful spending as one of the signs of financial success that you often don't hear about from traditional financial experts. He explained that intentionally (not recklessly) spending 15% or more of what you make on things you enjoy has its place in a healthy financial plan. Otherwise, you might feel tempted to hoard your money and feel like you don't have much control over it. By working out a budget that lets you buy things without guilt, you'll be able to live with more balance and enjoy what Sethi called your 'rich life' now and later. Having Healthy Money Conversations 'If you can talk about money clearly and calmly with yourself, with a partner, you have built one of the most overlooked forms of wealth: communication,' Sethi said. Money can be an uncomfortable topic that leads to arguments or makes you feel bad or secretive about your situation. So, you're doing well if you keep communication open and regularly meet with others to talk about your financial goals and ideas. Doing so also gives you chances to gain support and increase trust. Not Relying on Money Apps S&P Global's 2024 U.S. Consumer Insights survey found that 83% of Americans used financial apps. While money apps make it easier to monitor your finances, make budgets and even invest, some people become too attached to these tools, leading to wasted time and even anxiety. Sethi gave an example of someone who makes it a habit to check their money apps daily and look at their account balances so they feel some security. He explained that you're doing well if you've automated your finances and don't have to rely on money apps or spreadsheets in this way. He also recommended a clear, simple money management system over a complex one. More From GOBankingRates The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on Ramit Sethi: 7 Signs You're More Financially Successful Than You Think Sign in to access your portfolio
Yahoo
a day ago
- Business
- Yahoo
Ramit Sethi: 7 Signs You're More Financially Successful Than You Think
According to a Discover Personal Loans survey, 86% of respondents reported being at least occasionally concerned about their finances in 2025. Many felt that expenses and inflation got in the way of their financial success in areas like paying off debt and preparing for the unexpected. Trending Now: Check Out: If you're living with this uncertainty or feeling like others are doing much better, look at where you really stand, since you might be pleasantly surprised. In a YouTube video, money expert Ramit Sethi shared these seven indicators that you're more financially successful than you think you are. Having a Six-Month Emergency Fund A 2025 Vanguard study found that a $2,000 emergency fund boosts your financial well-being by 21% and you get another 13% gain with at least three months of expenses saved. That's no surprise given the financial safety net and peace of mind that having substantial savings provides. Sethi said you're in good shape with six months of expenses saved, though he recommended 12 months in very unstable times, such as during the recent tariff confusion. This money will help in times of crisis, such as a job loss or big expense and give you some margin for decisions. Discover Next: Being Free of Credit Card Debt 'If you have paid off all your credit cards or, frankly, you never let a balance accumulate, you are in very good company,' Sethi said. He discussed how this shows you know how to control your spending and not get stuck racking up interest while you only make minimum payments. Being free of credit card debt also makes it easier to invest in your future. Sethi recommended a debt payoff plan if you haven't achieved this goal yet. Regularly Investing 10% of Income According to Sethi, you've reached a major wealth-building milestone if you automatically put at least 10% of your pay toward investments. Ideally, you developed this habit while young so that the contributions and compound interest can pile up over the decades before retirement. Even if you don't feel like you're accomplishing much yet with investing, Sethi explained that the long-term results are key. For example, you might be 25 years old and contribute just $300 per month. While this sounds like little progress, if you're getting a 10% return and keep up contributing that amount through age 65, you'd have about $1.6 million. Making Last-Minute Decisions Without Panic While saving for big expenses is smart, opportunities and surprise costs often still pop up. Whether you have the chance to travel with friends at the last minute or need a sudden car repair, being able to calmly make the decision and afford the cost indicates being financially successful and having options. 'You have created enough financial slack in your life that one surprise expense is not going to throw you off plan and that is a powerful place to be,' Sethi explained. Spending 15% of Income Without Guilt Sethi described joyful spending as one of the signs of financial success that you often don't hear about from traditional financial experts. He explained that intentionally (not recklessly) spending 15% or more of what you make on things you enjoy has its place in a healthy financial plan. Otherwise, you might feel tempted to hoard your money and feel like you don't have much control over it. By working out a budget that lets you buy things without guilt, you'll be able to live with more balance and enjoy what Sethi called your 'rich life' now and later. Having Healthy Money Conversations 'If you can talk about money clearly and calmly with yourself, with a partner, you have built one of the most overlooked forms of wealth: communication,' Sethi said. Money can be an uncomfortable topic that leads to arguments or makes you feel bad or secretive about your situation. So, you're doing well if you keep communication open and regularly meet with others to talk about your financial goals and ideas. Doing so also gives you chances to gain support and increase trust. Not Relying on Money Apps S&P Global's 2024 U.S. Consumer Insights survey found that 83% of Americans used financial apps. While money apps make it easier to monitor your finances, make budgets and even invest, some people become too attached to these tools, leading to wasted time and even anxiety. Sethi gave an example of someone who makes it a habit to check their money apps daily and look at their account balances so they feel some security. He explained that you're doing well if you've automated your finances and don't have to rely on money apps or spreadsheets in this way. He also recommended a clear, simple money management system over a complex one. More From GOBankingRates 10 Cars That Outlast the Average Vehicle This article originally appeared on Ramit Sethi: 7 Signs You're More Financially Successful Than You Think Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Ammon
5 days ago
- Business
- Ammon
Google's Discover page now summarizes news with AI
Ammon News - Google is rolling out AI-generated summaries directly within Discover, its personalized news feed nestled within the Google Search app. TechCrunch reports that some users in the US are seeing Discover cards on iOS and Android that provide the new summaries in place of a headline and logo from a single publisher, similar to how AI Overviews appear at the top of results in Search. It acts to further obscure news sources at a time when search traffic to publishers is disappearing. The AI summaries in Discover display overlapping icons in the top-left corner, indicating the number of cited stories. Tapping the icons reveals a 'More' sheet with all the contributing articles. Users get a quick three-line preview before needing to tap 'See more' to expand the summary. A prominent warning is displayed underneath the text disclosing that the summaries are generated with AI, 'which can make mistakes.' This feature appears to have been in development for a while. Google bug hunter AndellDam found that trending cards with AI Overview-like summaries were being tested on Google Discover in June. A Google spokesperson confirmed to TechCrunch that this is not a test, but a US launch on iOS and Android. Google told the publication that the feature will focus on trending lifestyle topics like sports and entertainment, and aims to make it easier for people to decide what pages they want to visit. This is the latest of several AI features Google has been toying with that discourage users from clicking on web links, following AI Overviews, Audio Overviews, and AI Mode being tested in Search. This is cause for concern across the publishing industry, which has seen a dramatic fall in website traffic and referrals now that AI is pulling information out of articles and negating the need for readers to click through to original sources. That loss of traffic and revenue from Google Zero has already contributed to killing sites like AnandTech, Giant Freakin Robot, Laptop Mag, and Buzzfeed News — reducing the pool that Google can feed to its AI. The Verge
