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Khaleej Times
15 hours ago
- Business
- Khaleej Times
Credit card spending: Is your plastic really that fantastic?
Every day we pull out a piece of plastic and pay for food, drinks and shopping without even thinking twice about it. Nowadays, it's more likely that we pull out a phone or use our smart watch to pay – but they are still linked to our credit card. And a surprising number of people don't fully understand how interest on their credit card is charged and the associated fees. Here are some of the basic details you need to know. Interest rates Do you know how much interest your credit card company charges you? Monthly interest rates on credit cards in the UAE typically range from two per cent to four per cent, translating to annual rates of between 24 per cent and 48 per cent. That's pretty high when you consider the top rate of interest you'd earn on a UAE savings account is about five per cent. One misconception is when you actually pay interest on your card. In an ideal world, you will pay off your balance in full each month. That way, you avoid paying any interest. But we are not all so financially disciplined. Sometimes, you can't pay the full amount and instead end up paying half of it or just the minimum balance. That's often when the confusion begins as some people think if they pay the minimum amount due, then they won't be charged interest. Sadly, that's not the case. Grace periods A grace period is the time between your statement date and the due date of your payment, which is normally about 21 to 25 days. It does vary among credit card issuers. This grace period applies as long as you pay your full statement balance on time. But if you don't pay the full amount you are charged interest, which is often backdated to the date of the original purchase. Cash advances It's hard to think of a scenario where taking a cash advance on your credit card is a good idea. You will be charged interest the second you take the cash as grace periods don't apply to cash advances. Plus, you are usually charged a higher interest rate than for normal spending on the card. On top of that, you will pay a fee for the cash advance. Instead, consider a small personal loan or overdraft with lower rates. However, some banks are improving their offerings for those who really need the cash – Wio bank lets you borrow from your credit limit with Easy Cash, and charges one dirham per day for every Dh1,000 borrowed. Checking statements Be honest, how often do you look at your credit card statement in detail? Most people dread it coming and quickly move onto something else. But it could pay to go through it properly. Sometimes, transactions get added by mistake or the card has been used fraudulently. Look at what you paid for and make sure you recognise all the merchants. You can also see any penalties and fees you may have incurred, which should encourage you to manage the card better. The wrong card There are hundreds of credit cards out there, all offering different perks. How do you know you are using the right one? Research by comparison site Daleel found that only half of the people they surveyed are confident they have the right credit card for them. A look at Emirates NBD 's website will show you all sorts of card partners including Emirates, Etihad, Dnata, Noon, Lulu, Emaar, Marriott Bonvoy and one called Webshopper. They all offer cashback, air miles or discounts. To choose the right card, you have to match your spending habits with cards that reward those categories. For example, some cards reward certain types of purchases like online shopping, so make sure you only take out this card if you actually do a lot of your shopping online. The same is true for the airlines' cards. Foreign transaction fees Some cards may say they are ideal for travel but then charge you 2-3 per cent per transaction abroad. Look for cards that say 'no FX fees' or 'zero per cent foreign transaction fees' if you travel often. But even if they don't charge a fee, you may not always get the best currency conversion rates. When you get the option, always pay in the local currency as the bank will use the more competitive conversion rates used by Visa and Mastercard. Promotions We all love a good promotion or discount. For credit cards, it could be 'No Annual Fee'. But this might only be for the first year, and then a huge fee kicks in after 12 months. Zero per cent interest deals are always worth double checking. Are they really not charging any interest? Once the introductory offer ends you may then be charged interest if you don't pay off the full balance. T&Cs It would be unrealistic to advise people to read all the literature that comes with a credit card – the small print. But you should get a Key Facts or an 'At a Glance' summary from your bank, while others are turning to videos and other formats to clearly explain the terms and conditions. The more time you can spend reading them, the more informed a decision you can make. For example, while researching this article I browsed a lot of credit cards and landed on the RAKBank World credit card which offers up to 10 per cent on a variety of spending which sounds very generous. But after digging around, I saw that to start earning cashback you need to spend a minimum of Dh10,000 per month on your World Credit Card. That amount might not suit everybody so this is when reading as much of the small print as possible really helps.
Yahoo
3 days ago
- Business
- Yahoo
Best CD rates today, June 1, 2025 (lock in up to 4.25% APY)
Find out how much you could earn by locking in a high CD rate today. A certificate of deposit (CD) allows you to lock in a competitive rate on your savings and help your balance grow. However, rates vary widely across financial institutions, so it's important to ensure you're getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers. Historically, longer-term CDs offered higher interest rates than shorter-term CDs. Generally, this is because banks would pay better rates to encourage savers to keep their money on deposit longer. However, in today's economic climate, the opposite is true. Today, the highest CD rate 4.25% APY, offered by Langley Federal Credit Union on its 10-month CD. There is a $500 minimum opening deposit required. Here is a look at some of the best CD rates available today from our verified partners: This embedded content is not available in your region. The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly). Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,018.25 — your initial $1,000 deposit, plus $18.25 in interest. Now let's say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest. The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you'd earn $407.42 in interest. Read more: What is a good CD rate? When choosing a CD, the interest rate is usually top of mind. However, the rate isn't the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here's a look at some of the common types of CDs you can consider beyond traditional CDs: Bump-up CD: This type of CD allows you to request a higher interest rate if your bank's rates go up during the account's term. However, you're usually allowed to "bump up" your rate just once. No-penalty CD: Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty. Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today's CD rate environment, however, the difference between traditional and jumbo CD rates may not be much. Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured. This embedded content is not available in your region.
RNZ News
3 days ago
- Business
- RNZ News
Money in transaction accounts costing New Zealanders billions
Experts are reminding New Zealanders to consider whether cash they have stored in the bank could be be earning them interest. Photo: 123RF New Zealanders may be leaving money on the table by keeping their cash in transaction accounts. David Cunningham, chief executive of mortgage broking firm Squirrel, said there was significantly more money in transaction accounts now than before Covid. Most banks do not pay interest on transaction accounts. Cunningham said transaction account balances had peaked at $53 billion when interest rates were close to zero, and people could see little reason to change. It had fallen to a recent low of $37b but had now lifted again to $39b. "Almost all of this earns 0 percent [interest]." If that money was shifted into an account paying 3 percent, it would give savers just under $1.2 billion in interest a year. Cunningham said before Covid hit, there was about $28 billion in transaction accounts. "You're always going to need some float in your transaction accounts but a lot of this is lazy money." He said it was customer inertia that also delivered higher profits to the banks, because they could make money from the cash sitting in the accounts. But he said banks should be encouraging customers to check that they had their money in the right accounts. "Every time you log in they could remind you that you've got say $20,000 in a transaction account earning nothing and if you moved it to savings you could earn x… that would be a way to make sure people were better off," Cunningham said. Claire Matthews, a banking expert from Massey University, said some people kept their money in transaction accounts because of the ease of access. "They may have concerns about fees to access it if it's in a savings account. Partly I think it's because they don't think the interest will be worth it - but they may not have actually looked at the numbers, because depending on the amount it may be very worthwhile over time. Partly, however, it is probably just not getting around to doing it." Banks have been cutting rates for term deposits and some savings this week, after the official cash rate reduction . Westpac said on Thursday it was cutting the rate offered on a number of term deposits by 10 basis points. ASB said it was cutting the rate offered on its Savings On Call, ASB Cash Fund, Savings Plus and Headstart accounts by 20 basis points. That took the Headstart rate to 2.7 percent. Sign up for Ngā Pitopito Kōrero, a daily newsletter curated by our editors and delivered straight to your inbox every weekday.
Yahoo
4 days ago
- Business
- Yahoo
Best CD rates today, May 31, 2025 (best account provides 4.25% APY)
Find out how much you could earn by locking in a high CD rate today. The Federal Reserve cut its federal funds rate three times in 2024, so now could be your last chance to lock in a competitive CD rate before rates fall further. CD rates vary widely across financial institutions, so it's important to ensure you're getting the best rate possible when shopping around for a CD. The following is a breakdown of CD rates today and where to find the best offers. Generally, the best CD rates today are offered on shorter terms of around one year or less. Online banks and credit unions, in particular, offer the top CD rates. Today, the highest CD rate 4.25% APY, offered by Langley Federal Credit Union on its 10-month CD. There is a $500 minimum opening deposit required. Here is a look at some of the best CD rates available today: Ce contenu intégré n'est pas disponible dans votre région. The amount of interest you can earn from a CD depends on the annual percentage rate (APY). This is a measure of your total earnings after one year when considering the base interest rate and how often interest compounds (CD interest typically compounds daily or monthly). Say you invest $1,000 in a one-year CD with 1.81% APY, and interest compounds monthly. At the end of that year, your balance would grow to $1,018.25 — your initial $1,000 deposit, plus $18.25 in interest. Now let's say you choose a one-year CD that offers 4% APY instead. In this case, your balance would grow to $1,040.74 over the same period, which includes $40.74 in interest. The more you deposit in a CD, the more you stand to earn. If we took our same example of a one-year CD at 4% APY, but deposit $10,000, your total balance when the CD matures would be $10,407.42, meaning you'd earn $407.42 in interest. Read more: What is a good CD rate? When choosing a CD, the interest rate is usually top of mind. However, the rate isn't the only factor you should consider. There are several types of CDs that offer different benefits, though you may need to accept a slightly lower interest rate in exchange for more flexibility. Here's a look at some of the common types of CDs you can consider beyond traditional CDs: Bump-up CD: This type of CD allows you to request a higher interest rate if your bank's rates go up during the account's term. However, you're usually allowed to "bump up" your rate just once. No-penalty CD: Also known as a liquid CD, type of CD gives you the option to withdraw your funds before maturity without paying a penalty. Jumbo CD: These CDs require a higher minimum deposit (usually $100,000 or more), and often offer higher interest rate in return. In today's CD rate environment, however, the difference between traditional and jumbo CD rates may not be much. Brokered CD: As the name suggests, these CDs are purchased through a brokerage rather than directly from a bank. Brokered CDs can sometimes offer higher rates or more flexible terms, but they also carry more risk and might not be FDIC-insured. Ce contenu intégré n'est pas disponible dans votre région.
Daily Mail
6 days ago
- Business
- Daily Mail
Nationwide launches new savings account with a top interest rate: Here's who can get it
Nationwide Building Society has launched an 18 month fixed-rate savings account paying 5 per cent interest. The new 'Member Exclusive Bond' is only available to existing Nationwide customers. The account was unveiled alongside Nationwide's £100 'Fairer Share' payment and a £200 member switching bonus. This is now the best rate available for a fixed-rate savings bond, beating both the top 18-month and one-year fixed-rate accounts on a deposit of £10,000. Around 16million people will be able to get this savings account as it is only available to those who are already members of the society. The account can be opened online, using internet banking, in the Nationwide mobile app or in a branch. What are the account's rules? To get the account, members needed to have held a Nationwide current account, savings account or mortgage account on 29 May 2025 and at the time of applying. However, there is a catch. The maximum amount a saver can put in this account is £10,000. Members saving the maximum £10,000 would receive £762.50 in interest after 18 months, £150 more than they would receive over the same period in Nationwide's next highest-rate bond, a one year fix that pays 4 per cent. This account now takes the top spot for an 18-month fixed-rate account on This is Money's best buy savings rate tables. For members who want to stash more than the £10,000 cap in a fixed-rate bond, the next best deal is Oxbury Bank's 18-month bond which pays 4.45 per cent. While the best one year-fixed rate bond pays 4.44 per cent and is offered by Castle Trust Bank. A saver putting £10,000 in this account would earn £453 at the end of the term. Savers won't be able to withdraw money from the Nationwide account until the 18-month term ends. Interest is paid annually on the anniversary of account opening and at maturity. One savings expert thinks the 18-month bond looks attractive despite the catch of £10,000 being the maximum deposit limit. Andrew Hagger, personal finance expert and founder of Money Comms said: 'Eighteen months at 5 per cent is an excellent deal it's 0.55 per cent higher than the current best buy from Oxbury Bank at 4.45 per cent. 'As a Nationwide member I would seriously consider this, even though the maximum you can save in this exclusive bond is £10,000. 'Despite this I'm sure there will be no shortage of takers.'
