Cash is going extinct, and at the very least we can hope that means the end of annoying coins and, maybe, just maybe, the end of $x.99 prices. Just charge me $4 so I'm not stuck with that penny, okay?
But we diverge.
Mobile payments have taken over transactions everywhere and now mobile banking wants to make the other side of money—saving it—just as easy.
According to the American Bankers Association, 1 in 3 Americans deposited a check with a mobile device in 2016. And many of those users reported doing it frequently.
Mobile check deposits are a big part of the mobile banking boom that's escalating with the increasing security of mobile phones. Without having to visit a bank or ATM, you can take a picture of both sides of your check and securely deposit it into your bank account through their mobile app.
With only a few short steps, you can deposit that check from your couch, even on a Sunday, even at midnight, in as many steps as it takes to Snap a selfie with dog whiskers.
The possible drawbacks to mobile deposits are basically the same as when you deposit at a bank. You'll still have to deal with the usual delays if your bank holds funds for a day or two. Some banks hold funds longer after a mobile deposit, but at this point, most of the most popular banks follow the standard regulations that you're already used to.
Banks have faced pretty rare instances of fraud where, because you can keep the check after you've deposited it, people have tried to deposit it again. In some of those instances, a different person deposited the check, causing the bank to remove the money from the legitimate depositor's account. But banks have generally solved these problems. One recommendation is to sign the check with "for mobile deposit only," to reduce the chances of this happening.
Santander's website suggests that you write "Deposited" and the date on your check after you've sent pictures of it as added precaution. They also advise that you keep it for two weeks for reference and then destroy it. Shredding is a safe way to prevent a lucky snooper from getting any ideas, and it's also a great stress-reliever! (Side recommendation: shred everything if you have the opportunity! It's just fun).
Mobile device security is higher than ever, so a secure connection to your bank is not something to worry about. They store the images on their end, anyway, so losing your phone or falling victim to a hack won't make any of your deposits vulnerable.
Every bank has its own suggestions for mobile deposit. If you follow their guidelines and use the same precautions you always have, the process should be smooth and as stunningly simple as it is on paper. So go ahead, cash that check with your phone. Just make sure you're on your bank's app and not Snapchat when you take the pictures.
Whether you are looking for a new job or trying to grow in your current one, getting a certification can be a great way to improve your skills.
Anyone can put that they are proficient in a computer program on their resume but having a certificate can help you stand out amongst the competition and give credence to the strength of your skills.
But what's the best way to invest in yourself without breaking the bank? Some certification programs can cost hundreds if not thousands of dollars. We are going to walk through six of the best certifications you can get for $100 or less.
Who is it best for: Those who work with analyzing and presenting data.
Cost: $100 for Tableau Desktop Specialist; additional certifications are available for a larger fee.
More companies than ever see themselves as data companies. Being able to understand data and use it to guide decisions at your company is often critical to taking on a leadership role. Not to mention, being able to present the data in a clean, attractive, and compelling way can help get buy-in from others in your organization or clients. That's why Tableau is a great tool to have in your toolbox.
Tableau allows you to create interactive visual analytics dashboards. In layman's terms, you can take data; create graphs, maps, or charts; and then allow end-users to interact with these graphics to better understand the information. It's a fantastic tool allowing non-technical users to gain insights for data-driven decision-making.
Tableau Desktop Specialist certification starts at $100 and has no expiration date. There are many videos on Tableau's site to prepare for your exam as well as Tableau Starter Kits allowing you to play around and learn the different capabilities of the program. Tableau offers a 14-day free trial as well as free license for one year for students.
Additional certifications after Desktop Specialist are Desktop Associate and Desktop Professional. Those working with a Tableau server may also be interested in a separate certification as a Server Associate or Server Professional.
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When you take out a loan for a car, charge something to your credit card, or get a personal line of credit, there is going to be an interest rate that applies to your loan.
A lot of different factors go into what you will be charged, including your own personal credit score. But even those with flawless credit still see a minimum charge that they can't get around. That all goes back to the Federal Funds Rate.
One thing consumers rarely realize is that all of our banks are lending money to each other every night. Banks are legally required to maintain a certain percentage of their deposits in non-interest-bearing accounts at the Federal Reserve to ensure they have enough money to cover any withdrawals that may unexpectedly come up. However, deposits can fluctuate and it's very common for some banks to exceed the requirement on certain days while some fall short. In cases like this, banks actually lend each other money to ensure they meet the minimum balance. It's a bit hard to imagine these multibillion-dollar financial institutions needing to borrow money to tide them over for a bit, but it happens every single night at the Federal Reserve. It's also a nice deal for those with balances above the reserve balance requirement to earn a bit of money with cash that would normally just be sitting there.
The Federal Reserve
The exact interest rate the banks will charge each other is a matter of negotiation between them, but the Federal Open Market Committee (FOMC) (the arm of the Federal Reserve that sets monetary policy) meets eight times a year to set a target rate. They evaluate a multitude of economic indicators including unemployment, inflation, and consumer confidence to decide the best rate to keep the country in business. The weighted average of all interest rates across these interbank loans is the effective federal funds rate.
This rate has a huge impact on the economy overall as well as your personal finances. The federal funds rate is essentially the cheapest money available to a bank and that feeds into all of the other loans they make. Banks will add a slight upcharge to the rate set by the Fed to determine what is the lowest interest that they will announce for their most creditworthy customers, also known as the prime rate. If you have a variable interest rate loan (very common with credit cards and some student loans), it's likely that the interest rate you pay is a set percentage on top of that prime rate that your lender is paying. That's why in times of low interest rates (it was set at 0% during the Great Recession), a lot of borrowers should go for fixed interest rate loans that won't increase. However, if the federal funds rate was relatively high (it went up to 20% in the early 1980's), a variable interest rate loan may be a better decision as you would be charged less interest should the rate drop without the need to refinance.
The federal funds rate also has a major impact on your investment portfolio. The stock market reacts very strongly to any changes in interest rates from the Federal Reserve, as a lower rate makes it cheaper for companies to borrow and reinvest while a higher rate may restrict capital and slow short-term growth. If you have a significant portion of your investments in equities, a small change in the federal funds rate can have a large impact on your net worth.
Whether you're leaving a job involuntarily, departing for something new, or just want to prepare for the unknown, it is smart to understand all your options regarding your 401k.