Latest news with #FDIC-insured
Yahoo
16 hours ago
- Business
- Yahoo
The Safest Place To Park Your Funds Short-Term in Every Major 401(k) Plan
The recent stock market volatility may have spooked some investors and prompted them to seek safer assets. While risk tolerance is personal, it's important to not make any rash decisions when it comes to investing, especially when dealing with long-term investing for retirement, like within your 401(k). Check Out: For You: That said, if you are looking for a short-term, safe place to park your funds for any reason, such as if you changed jobs and need time to decide where to invest or you're nearing retirement and want to reduce volatility, essentially every major 401(k) plan offers at least one stable option to store cash. Below is the safest place to park your funds short-term in every major 401(k) plan. 'The safest place to park cash in a 401(k) is typically a money market fund or any fund that is designed to preserve capital,' said Amber Schiffert, co-founder of Tara Wealth. A money market fund generally invests in high-quality, liquid assets such as short-term Treasuries, enabling you to earn a small return without taking on much risk, as the price of the fund is always meant to stay at $1 per share, with only the yield fluctuating. Note that these funds might not be directly available within a 401(k), but instead, many retirement plans offer what are known as cash sweep accounts. These accounts move your uninvested cash into money market funds or other low-risk, interest-bearing vehicles, like an FDIC-insured bank account. Read Next: 'This said, we generally wouldn't recommend strategically parking cash in your 401(k),' Schiffert said. While it's not necessarily a bad choice in terms of losing money, inflation could eat into your cash, not to mention missing out on potential long-term gains. 'The job of a 401(k) is to support your long-term retirement goals, not act as an emergency fund or a source for short-term purchases. Your financial plan should align your accounts with their intended purpose. If you're risk-averse or have a shorter time horizon, we'd recommend adjusting your overall asset allocation rather than moving to cash without a clear strategy,' Schiffert added. Keep in mind, however, that you might already have more funds parked in cash-like accounts than you realize. 'Most plans also offer target date funds in their lineup, which generally hold a small allocation to cash or cash equivalents, usually between 1% and 5%, depending on the target retirement year. For example, if you have $1 million in a target date fund, that could mean you already have $10,000 to $50,000 sitting in cash inside your portfolio,' Schiffert said. That cash buffer can provide some flexibility to these funds and might reduce the temptation for you to try de-risk on your own. Although putting money into a relatively safe vehicle like a money market fund typically isn't advisable for a long-term retirement strategy, there are situations where it could make sense to move some money there. For example, 'if someone is a year or two from retirement, with little or no cash reserves outside their 401(k), it might make sense to move a portion of their portfolio into cash or a cash equivalent. How long your money lasts in retirement can be greatly impacted by sequence of returns risk, so having one to two years of expenses in cash before retirement can be smart,' Schiffert said. 'This serves as an emergency reserve and as a buffer against market volatility, especially if you retire during a period of heightened uncertainty like we're seeing today,' she added. Still, this cash buffer would ideally be in a high-yield savings account while your retirement assets can stay invested, 'but if that's not the case, increasing your cash allocation within a traditional pre-tax 401(k) might make sense,' Schiffert said. 'If your plan includes traditional/pre-tax and Roth contributions, it's generally better to keep the Roth portion fully invested. Roth dollars grow tax-free, distributions are generally tax-free and they aren't subject to required minimum distributions, so you want them compounding as long as possible,' Schiffert said. For others, though, especially those with a long time until retirement, parking cash in a 401(k), such as within a money market fund or cash sweep account, probably isn't advisable unless it's simply part of a transfer and you'll invest those funds as soon as possible. But if you're considering the move because you're fearing what will happen in the stock market, for example, that probably isn't the way to go. 'We usually see people tempted to move to cash when there's heightened market uncertainty. We encourage people to remember, there's always going to be market volatility. That's just the nature of the stock market. It's best not to make decisions in a vacuum and instead, zoom out and think big picture,' Schiffert said. 'At the end of the day, the market is resilient. If your portfolio is already aligned with your risk tolerance, time horizon and goals, then there's usually no real reason to make sweeping changes,' she added. More From GOBankingRates Here's the Minimum Salary Required To Be Considered Upper Class in 2025 The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on The Safest Place To Park Your Funds Short-Term in Every Major 401(k) Plan
Yahoo
2 days ago
- Business
- Yahoo
Klarna and Visa Launch Pilot of New Debit Card with Increased Flexibility at Money 2020 Europe
Card combines debit and pay over time flexibility in one product using Visa Flexible Credential with FDIC-insured wallet and access to 150M+ global merchants NEW YORK, June 03, 2025--(BUSINESS WIRE)--Klarna, the AI-powered payments and commerce network, unveiled the pilot launch of Klarna Card: a new debit product combined with access to built-in flexible payment options, powered by Visa Flexible Credential and issued by WebBank. Unlike traditional credit cards that can see consumers incur additional debt and interest charges, the Klarna Card will allow consumers to pay immediately or pay later when needed - online or in-store - at more than 150 million Visa-accepting merchants worldwide. The Klarna Card is currently in a trial phase in the U.S., gathering feedback to refine the experience before a broader rollout in the U.S. and Europe expected later this year. This phased approach supports feature refinements, performance optimization, and ensures the product delivers a smarter, more flexible spending tool. With over 5 million consumers already on the waitlist, the Klarna Card is the boldest step yet toward Klarna becoming an everyday spending solution in the U.S. The card comes with an FDIC-insured wallet, which allows consumers to store money and make real-time transfers, and deposits, and integrates directly with the Klarna Pay in 4 and Pay Later options—all in one seamless experience. "We consistently hear from consumers that they want the freedom to choose how and when to pay - whether that's paying now with debit or spreading the cost over time," said David Sandström, Chief Marketing Officer at Klarna. "They want simplicity, flexibility, and transparency - all in one place. That's exactly what has made Klarna payment methods so popular online, and now that same experience is coming to a physical card. The Klarna Card is the future of everyday banking - creating smart payments, to empower smarter shoppers." By combining access to spending, saving, and borrowing tools in one intuitive platform, Klarna is becoming a modern day global neobank for the digital-first consumer. The Klarna Card is a key step in this evolution - a transparent, tech-driven alternative to the products of traditional banks. "Millions of people around the world have embraced the choice and control offered by Visa's Flexible Credential, and we're delighted to extend this to even more U.S. consumers, as well as bringing it to Europe for the first time," added Mathieu Altwegg, SVP Product and Solutions, for Visa in Europe. "This is a pioneering example of a future where consumers will only need one card in order to have access to their preferred ways to pay, no matter where they are, or what they're purchasing." *Klarna Card is issued by WebBank. Klarna balance account provided by WebBank, Member FDIC. Notes to editors: Flexible payment options: Pay up front in debit mode, or activate Klarna payment options and features, such as Pay in 4 and Pay Later, while also offering all the great features in the Klarna app including budgets, track spending reminders, among others. Option to upgrade Tiers: Once available, customers will be able to choose between one free, or two paid tiers which include merchant discounts and improved cashback rates. The card will come in three colors: aubergine, black and bright green. Available to all Klarna customers: Debit functionality is available to all; credit is granted on a case-by-case basis following a credit check. Klarna Card availability: The Klarna Card is currently in testing in the U.S. as work is done with early users to evolve the final product. This test phase marks an important milestone in building financial solutions that meet real consumer needs. It will be available to all consumers in the U.S. in the coming months, with rollout in Europe expected to follow. About Visa Flexible Credential: Visa Flexible Credential is a network capability that allows multiple payment experiences - such as debit, prepaid, credit, installments and rewards - to be accessed from a single card. About Klarna Klarna is on a mission to be available everywhere for everything. With over 100 million global active Klarna users and 2.9 million transactions per day, Klarna's AI-powered payments and commerce network is empowering people to pay smarter — online, in-store and through Apple Pay in the U.S., UK and Canada. More than 724,000 retailers trust Klarna's innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. For more information, visit About Visa Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at View source version on Contacts Isobel Bradshaweuropeanmedia@ +44 20 7795 5336 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
Business Upturn
2 days ago
- Business
- Business Upturn
Klarna and Visa Launch Pilot of New Debit Card with Increased Flexibility at Money 2020 Europe
By Business Wire India Published on June 3, 2025, 17:26 IST New York, United States: Klarna, the AI-powered payments and commerce network, unveiled the pilot launch of Klarna Card: a new debit product combined with access to built-in flexible payment options, powered by Visa Flexible Credential and issued by WebBank. Unlike traditional credit cards that can see consumers incur additional debt and interest charges, the Klarna Card will allow consumers to pay immediately or pay later when needed – online or in-store – at more than 150 million Visa-accepting merchants worldwide. The Klarna Card is currently in a trial phase in the U.S., gathering feedback to refine the experience before a broader rollout in the U.S. and Europe expected later this year. This phased approach supports feature refinements, performance optimization, and ensures the product delivers a smarter, more flexible spending tool. With over 5 million consumers already on the waitlist, the Klarna Card is the boldest step yet toward Klarna becoming an everyday spending solution in the U.S. The card comes with an FDIC-insured wallet, which allows consumers to store money and make real-time transfers, and deposits, and integrates directly with the Klarna Pay in 4 and Pay Later options—all in one seamless experience. 'We consistently hear from consumers that they want the freedom to choose how and when to pay – whether that's paying now with debit or spreading the cost over time,' said David Sandström, Chief Marketing Officer at Klarna. 'They want simplicity, flexibility, and transparency – all in one place. That's exactly what has made Klarna payment methods so popular online, and now that same experience is coming to a physical card. The Klarna Card is the future of everyday banking – creating smart payments, to empower smarter shoppers.' By combining access to spending, saving, and borrowing tools in one intuitive platform, Klarna is becoming a modern day global neobank for the digital-first consumer. The Klarna Card is a key step in this evolution – a transparent, tech-driven alternative to the products of traditional banks. 'Millions of people around the world have embraced the choice and control offered by Visa's Flexible Credential, and we're delighted to extend this to even more U.S. consumers, as well as bringing it to Europe for the first time,' added Mathieu Altwegg, SVP Product and Solutions, for Visa in Europe. 'This is a pioneering example of a future where consumers will only need one card in order to have access to their preferred ways to pay, no matter where they are, or what they're purchasing.' *Klarna Card is issued by WebBank. Klarna balance account provided by WebBank, Member FDIC. Notes to editors: Flexible payment options: Pay up front in debit mode, or activate Klarna payment options and features, such as Pay in 4 and Pay Later, while also offering all the great features in the Klarna app including budgets, track spending reminders, among others. Pay up front in debit mode, or activate Klarna payment options and features, such as Pay in 4 and Pay Later, while also offering all the great features in the Klarna app including budgets, track spending reminders, among others. Option to upgrade Tiers: Once available, customers will be able to choose between one free, or two paid tiers which include merchant discounts and improved cashback rates. The card will come in three colors: aubergine, black and bright green. Once available, customers will be able to choose between one free, or two paid tiers which include merchant discounts and improved cashback rates. The card will come in three colors: aubergine, black and bright green. Available to all Klarna customers: Debit functionality is available to all; credit is granted on a case-by-case basis following a credit check. Debit functionality is available to all; credit is granted on a case-by-case basis following a credit check. Klarna Card availability: The Klarna Card is currently in testing in the U.S. as work is done with early users to evolve the final product. This test phase marks an important milestone in building financial solutions that meet real consumer needs. It will be available to all consumers in the U.S. in the coming months, with rollout in Europe expected to follow. The Klarna Card is currently in testing in the U.S. as work is done with early users to evolve the final product. This test phase marks an important milestone in building financial solutions that meet real consumer needs. It will be available to all consumers in the U.S. in the coming months, with rollout in Europe expected to follow. About Visa Flexible Credential: Visa Flexible Credential is a network capability that allows multiple payment experiences – such as debit, prepaid, credit, installments and rewards – to be accessed from a single card. About Klarna Klarna is on a mission to be available everywhere for everything. With over 100 million global active Klarna users and 2.9 million transactions per day, Klarna's AI-powered payments and commerce network is empowering people to pay smarter — online, in-store and through Apple Pay in the U.S., UK and Canada. More than 724,000 retailers trust Klarna's innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. For more information, visit About Visa Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at View source version on Disclaimer: The above press release comes to you under an arrangement with Business Wire. Business Upturn takes no editorial responsibility for the same. Business Wire India, established in 2002, India's premier media distribution company ensures guaranteed media coverage through its network of 30+ cities and top news agencies.
Business Wire
2 days ago
- Business
- Business Wire
Klarna and Visa Launch Pilot of New Debit Card with Increased Flexibility at Money 2020 Europe
NEW YORK--(BUSINESS WIRE)--Klarna, the AI-powered payments and commerce network, unveiled the pilot launch of Klarna Card: a new debit product combined with access to built-in flexible payment options, powered by Visa Flexible Credential and issued by WebBank. Unlike traditional credit cards that can see consumers incur additional debt and interest charges, the Klarna Card will allow consumers to pay immediately or pay later when needed - online or in-store - at more than 150 million Visa-accepting merchants worldwide. The Klarna Card is currently in a trial phase in the U.S., gathering feedback to refine the experience before a broader rollout in the U.S. and Europe expected later this year. This phased approach supports feature refinements, performance optimization, and ensures the product delivers a smarter, more flexible spending tool. With over 5 million consumers already on the waitlist, the Klarna Card is the boldest step yet toward Klarna becoming an everyday spending solution in the U.S. The card comes with an FDIC-insured wallet, which allows consumers to store money and make real-time transfers, and deposits, and integrates directly with the Klarna Pay in 4 and Pay Later options—all in one seamless experience. 'We consistently hear from consumers that they want the freedom to choose how and when to pay - whether that's paying now with debit or spreading the cost over time,' said David Sandström, Chief Marketing Officer at Klarna. 'They want simplicity, flexibility, and transparency - all in one place. That's exactly what has made Klarna payment methods so popular online, and now that same experience is coming to a physical card. The Klarna Card is the future of everyday banking - creating smart payments, to empower smarter shoppers.' By combining access to spending, saving, and borrowing tools in one intuitive platform, Klarna is becoming a modern day global neobank for the digital-first consumer. The Klarna Card is a key step in this evolution - a transparent, tech-driven alternative to the products of traditional banks. 'Millions of people around the world have embraced the choice and control offered by Visa's Flexible Credential, and we're delighted to extend this to even more U.S. consumers, as well as bringing it to Europe for the first time,' added Mathieu Altwegg, SVP Product and Solutions, for Visa in Europe. 'This is a pioneering example of a future where consumers will only need one card in order to have access to their preferred ways to pay, no matter where they are, or what they're purchasing.' *Klarna Card is issued by WebBank. Klarna balance account provided by WebBank, Member FDIC. Notes to editors: Flexible payment options: Pay up front in debit mode, or activate Klarna payment options and features, such as Pay in 4 and Pay Later, while also offering all the great features in the Klarna app including budgets, track spending reminders, among others. Option to upgrade Tiers: Once available, customers will be able to choose between one free, or two paid tiers which include merchant discounts and improved cashback rates. The card will come in three colors: aubergine, black and bright green. Available to all Klarna customers: Debit functionality is available to all; credit is granted on a case-by-case basis following a credit check. Klarna Card availability: The Klarna Card is currently in testing in the U.S. as work is done with early users to evolve the final product. This test phase marks an important milestone in building financial solutions that meet real consumer needs. It will be available to all consumers in the U.S. in the coming months, with rollout in Europe expected to follow. About Visa Flexible Credential: Visa Flexible Credential is a network capability that allows multiple payment experiences - such as debit, prepaid, credit, installments and rewards - to be accessed from a single card. About Klarna Klarna is on a mission to be available everywhere for everything. With over 100 million global active Klarna users and 2.9 million transactions per day, Klarna's AI-powered payments and commerce network is empowering people to pay smarter — online, in-store and through Apple Pay in the U.S., UK and Canada. More than 724,000 retailers trust Klarna's innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy's, Ikea, Expedia Group, Nike and Airbnb. For more information, visit About Visa Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, merchants, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at
Yahoo
2 days ago
- Business
- Yahoo
Savings calculator: How to grow your emergency fund
(NewsNation) — With the economy on shaky ground, more Americans may focus on saving, but many aren't making the most of their money. A recent Vanguard survey found that nearly 60% of Americans earn less than 3% interest on their savings, and about a quarter earn under 1% — well below the 4%+ rates offered by top high-yield savings accounts. Regular vs. high-yield savings account: What's the difference? A few percentage points may not seem like much, but over time, the higher returns from a HYSA can add up to thousands of extra dollars, without any added risk. Experts typically recommend setting aside three to six months' worth of essential living expenses in an emergency fund. A high-yield savings account lets that money grow essentially Earned: Total Contributions: Initial Deposit: Total Savings: The calculators on this website are provided for educational purposes only and are not a substitute for, nor should be construed as financial, legal, tax or other advice. All calculator results are estimates based on information you provide and may not reflect actual results based on all relevant information and factors. NewsNation is not responsible for the results or accuracy of information available via the calculators, and users should consult their own financial, tax, legal or other advisers regarding their individual needs. From Your Money on NewsNation Traditional savings accounts currently offer an average interest rate of just 0.42%, according to the Federal Deposit Insurance Corporation. In contrast, some HYSAs offer rates about ten times higher, above 4%, per Bankrate. That extra interest comes with no added risk as long as you're using an FDIC-insured bank, which protects your deposits up to $250,000. Here's how much more money you could save: Traditional savings account Savings: $10,000 Annual interest rate: 0.42% Balance after 1 year: $10,042 Opening a savings account? Here's what to know High-yield savings account Savings: $10,000 Annual interest rate: 4.0% Balance after 1 year: $10,400 There are a few things to keep in mind before opening a HYSA: Interest rates can change: While a 4% rate can help grow your savings, it's not guaranteed. Rates may go up or down depending on decisions by the Federal Reserve. Don't think of it like investing: Emergency funds are meant to be safe and easy to access. If you're looking to grow your money over the long run, there are better options for investing. Watch out for fees and minimum deposits: Some HYSA accounts require a minimum deposit to earn the advertised interest rate. Others may charge monthly maintenance or withdrawal fees. No brick-and-mortar locations: Many HYSA accounts are online-only, so if you prefer visiting a physical bank, that might not be an option. Remember: The Internal Revenue Service treats the interest earned on a savings account as ordinary income, so it's taxed at the same rate as your regular earnings. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
