Latest news with #UniversalSavingsAccount
Newsweek
12-05-2025
- Business
- Newsweek
'Universal Savings Account' Proposed for All Americans: What to Know
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A new legislative proposal could soon give every American access to a flexible, tax-free way to build financial security. The Universal Savings Account (USA) Act, introduced this month in both chambers of Congress, aims to create a new class of savings account that combines the tax advantages of a Roth individual retirement account (IRA) with the unrestricted access of a traditional savings account. The bill, spearheaded by Texas Senator Ted Cruz and Representative Diana Harshbarger of Tennessee, both Republicans, would establish savings accounts that allow individuals to contribute up to $10,000 annually and withdraw their savings without taxation or penalties. Why It Matters The USA Act proposes a solution to what lawmakers say is an overly complex and punitive savings environment. "A simple and accessible incentive savings plan will provide families with a way to establish financial security and prosperity," Cruz said. Harshbarger called the bill a "commonsense" reform that "cuts through red tape and gives every American a flexible, tax-free way to save, invest, and spend—without government interference or penalties." Stock image of U.S. dollars of varying value. Stock image of U.S. dollars of varying value. GETTY What is a 'Universal Savings Account?' According to the bill, a USA is a trust account where contributions are made in cash, and withdrawals can be made at any time for any purpose—with no age limits, penalties, or usage restrictions. Money held in the account is not subject to federal taxation when withdrawn. According to the bill text, accounts could be opened with a maximum initial contribution of $10,000, which increases by $500 every year, before capping at $25,000. There would be no contribution limits based on income. How Do USA Accounts Compare? Like Roth IRAs, USAs feature post-tax contributions and tax-free growth. However, they offer a degree of more flexibility: Roth IRAs impose early withdrawal penalties and income eligibility caps, while USAs have none. Contribution limits also differ—$10,000 per year initially under the USA Act versus $7,000 for Roth IRAs in 2025. Like a Roth, you can also choose to invest your savings with a USA account. You would not be able to invest it in life insurance contracts, according to the bill text, like with Roth accounts. Compared to high-yield savings accounts, which offer taxed returns around 4–5 percent, a USA's untaxed growth offers a better net yield. For instance, a 4 percent return taxed at 22 percent yields just 3.12 percent, whereas the same return in a USA would remain at 4 percent. What People Are Saying Senator Ted Cruz said: "A simple and accessible incentive savings plan will provide families with a way to establish financial security and prosperity. This bill provides a straightforward solution to those challenges. I strongly urge my colleagues to pass this bill for the future generations of Americans." Representative Diana Harshbarger: "The Universal Savings Account Act cuts through red tape and gives every American a flexible, tax-free way to save, invest, and spend—without government interference or penalties. Washington shouldn't be in the business of micromanaging how people use their own money. This bill is a win for working families, a win for personal freedom, and a win for financial independence." The Tax Foundation said in a report: "Current tax-advantaged savings options are overly complex and restrictive." The new accounts "are tax-advantaged savings vehicles with unrestricted use of funds, allowing participants to save for any reason without penalty or excessive paperwork." What Happens Next The act has been introduced in both the House and the Senate and referred to the House and Ways Committee and the Finance Committee respectively.
Yahoo
16-04-2025
- Business
- Yahoo
Barclays Bank review (2025)
Summary: Barclays Bank's history began more than 300 years ago in London and has since expanded to serve 48 million customers across the globe. It offers retail banking, credit cards, and investment and wealth management services. The U.S. division of Barclays Bank offers online savings accounts and a wide range of CD terms. Barclays offers several deposit products for online customers. Some of the most noteable include: Barclays Universal Savings: The Barclays Universal Savings Account is a high-yield savings account with an interest rate that's nearly 10 times the national average. This account doesn't charge monthly maintenance fees or pose any minimum balance requirements. Barclays also offers a free savings assistant tool to help customers figure out how much they need to save each month to reach their goals. In fact, this account was selected as one of the 10 best high-yield savings accounts by our team of experts. Barclays Tiered Savings: This savings account allows you to earn higher rates with higher balances, up to a maximum 4.30% APY. Barclays Online CDs: Barclays online CDs come in terms that range from six months to 60 months, and rates as high as 4.00% APY. Interest on these CDs compounds daily and there are no hidden monthly fees or minimum balance requirements. This embedded content is not available in your region. Here are some of the fees you can expect to pay as a Barclays customer: Read more: What are bank fees, and how do I avoid them? Here's a closer look at some of the major pros and cons of banking with Barclays: Pros: Competitive rates: Barclays' savings accounts and CDs offer competitive rates that are far above industry averages. Low fees: Barclays doesn't charge annual fees or monthly maintenance fees for its accounts. It also doesn't require a minimum balance to open an account. Cons: Limited account offerings: Barclays' online account options only include savings accounts and CDs. Customers who want a checking account option will need to explore other banks. No physical branches in the U.S.: Barclays does not have any physical branch locations in the U.S. for customers to visit. Those who frequent their bank's branch or prefer to resolve banking issues in person will have to rely on online support instead. For banking-related questions, customers can contact a Barclays representative seven days a week between 8:00 a.m. and 8:00 p.m. ET. Barclays customers can access their accounts 24/7 via the bank's mobile app to view account balances, transfer money between accounts, and deposit checks remotely. The app is available for download on the App Store and Google Play, though neither is highly rated, with an average rating of 3.2 and 1.9, respectively. Barclays is committed to addressing climate change and becoming a net zero bank by 2050. It is also working on aligning its financing with the goals and timelines of the Paris Agreement and plans to invest up to £500 million of its own capital into climate tech companies by the end of 2027, among other climate goals. Barclays also actively gives back to the communities it serves by empowering entrepreneurs to connect with one another and scale their businesses and investing in sustainability-focused startups. Yes. Barclays Bank is a member of the FDIC. Barclays' routing number is 031101321. No. Barclays does not charge any monthly maintenance or annual fees for its accounts. Although Barclays has a U.S. banking division, it operates solely online with no physical branches. Barclays is a major global financial services provider that offers retail banking, credit cards, and more. Barclays Bank, specifically, is known for high-yield, fee-free online deposit accounts. Barclays' U.S. online banking division is one of the best banks for savings accounts and CDs with high interest rates and no fees.
