Startup America Partnership helps smaller businesses grow

A three month old private entity, started by the White House, is aiming to make owning a small business easier. Over a dozen new businesses have pledged $400 million to help entrepreneurs grow their companies. Article source – Startup America Partnership helps small businesses grow by MoneyBlogNewz.

The Startup America Partnership

The United States government works in a partnership with Startup America which is privately funded. The Startup America Partnership is privately managed and funded. Nevertheless, it is a White House initiative technically. The point of Startup America is to give discounts to entrepreneurs. This will help them start new companies of their own. The partnership provides preferred pricing and discounts to members of Startup America as well as workshops, classes and business information that could otherwise cost thousands of dollars. Small Businesses account for 44 percent or more of U.S. payroll and generate more than 60 percent of new jobs in the United States. Part of the partnership is to encourage hiring in small businesses. This will help them grow.

$400 million in new funding

Startup America made an announcement on April 20. Big-name businesses donated over $400 million to the organization. American Express has committed $125 million in preferred pricing for Startup America companies. There was a Google donation as well. It came in the form of Google Ad credits worth $100 million. Even Facebook has gotten involved. It will host May’s “Startup Days” this year. HP is offering $100 million in discounts on products for startup corporations. Cisco, Ernst and Young, First Data, LinkedIn, The National center for Women & Information Technology and Palindrome Advisors have also signed up to provide services and discounts. Several partnerships with companies already existed. Included in this list are The Pearson Foundation, American Association of Community Colleges, Causecast, Intel, FirstData, Google, Intuit, Microsoft, Atisa, Cisco, Mass Challenge, IBM and Artists & Instigators.

Make an effort to sign up

Do you have a business idea or already own a small business? The Startup America Partnership can help you. You may have already gotten a personal loan to start your business. Either way, it is quite simple. Go to Startupamericaparternship.org, register, and start looking at deals. All the programs will be listed there, even though there are different requirements for the various Startup America Partnership programs. The business will determine how much money the Startup America Partnership program will save you. It could be thousands though.

Articles cited

Startup America Partnership Website

startupamericapartnership.org/

SBA.gov

sba.gov/advocacy/7495/8420

Lansing says no to payday advance lending as Michigan economy flails

The Payday Pundit states that kicking a legal, lucrative business like pay day loans out of town are a poor choice – so zoning them out is a poor choice. NWI.com reports that the Lansing, Mich., Planning and Zoning Board are looking for ways to revise ordinances to phase bad credit loans out of town. Couple this move with Michigan’s HB 4214 and impending financial martial law, and you have a bad scene for Lansing and the entire state. Article resource – Lansing says no to payday lending as Michigan economy flails by MoneyBlogNewz.

All the ’special use’ provisions to change

To see if changes are necessary, the “special use” zoning provisions are being looked at. Lansing’s Planning and Zoning Board of Appeals has been in charge of this. The suggestions that targeted payday lenders are not a coincidence. Parking near churches in residential neighborhoods and limiting the number of in-home day care centers may have its civic import, however the business of bad credit loans boosts both credit-constrained consumers’ ability to keep away from insolvency through credit default and a city’s economy as a whole.

While the proposed zoning change would only prevent new payday loans outlets from locating in Lansing, critics see such a move as the typical first step against an enterprise lawmakers want to covertly torpedo. Passing it off as encouraging “more variety in the types of companies” that call Lansing home, which is how Trustee Mikal Stole explained the proposal to NWI, is a smokescreen.

The anger

There have already been difficulties with Michigan House Bill 4214 as state AFL-CIO president Mark Gaffney said it was “an assault on democracy” while Detroit Rep. John Conyers said the government in the state would end up with a “financial czar” (EFM) with the power to “force a municipality” such as putting Lansing into bankruptcy. A new EFM will start to have control as the Benton Harbor, Mich., official’s powers have been superseded . HB 4214 gives the power for dissolution to the EFM appointed.

The per capita income in Benton Harbor is the lowest in Michigan at $8,965, the Rachel Maddow Blog states. Local “Twin City” St. Joseph is at $24,949 just across the St. Joseph River from Benton Harbor. This is significant because Benton Harbor is the home of the Whirlpool company, which is celebrating its 100th anniversary this year. This is being celebrated on the “other side of the tracks” though. It is happening in St. Joseph instead.

The business staying at home is something the Benton Harbor business people would like. When it comes to payday loans, Lansing should be concerned about keeping its moneymakers around because a financial czar could possibly be waiting in the wings.

Articles cited

The Maddow Blog

maddowblog.msnbc.msn.com/_news/2011/04/18/6489195-whats-at-stake-in-benton-harbor

NWI Times

nwitimes.com/news/local/govt-and-politics/article_61f251e3-379e-5576-adde-8954a51e9131.html

Payday Pundit

paydaypundit.org/2011/04/18/too-prominent/

Misguided attempts to blame poverty on payday lending

Jobs fight poverty. Having a job empowers consumers to provide. Yet groups like the Anti-Poverty Coalition of Greater Dallas seem to have missed the memo, suggests the Payday Pundit. Fighting poverty is the coalition’s intended reason for attacking payday lending, reports the Dallas Observer. Article source – Killing payday lending does not fight poverty by MoneyBlogNewz.

What Larry James has to say

The coalition is hoping to create ways out of poverty. This is what CitySquare CEO Larry James said in a press release to the media:

“The Anti-Poverty Coalition of Greater Dallas is a new coalition that seeks to move 250,000 people out of poverty permanently by 2020 by coordinating efforts to keep people from falling into poverty and increasing pathways out of poverty,” writes James.

'A treadmill of debt’ is there

James says that, individuals fall into poverty in “a treadmill of debt” when getting personal loans and private loans, which is why they’re being attacked. All zoning ordinances would be challenged with legislation like SB 253 and Texas HB 410 that would keep personal loan companies out of the credit service organization category. The poor would be much better off with a “strong zoning ordinance to decrease the clustering of payday and auto title lending stores.” This is why the Poverty Coalition of Greater Dallas is attempting to get it put together. It believes that many would be better off with payday lending taken from them. There is nothing that speaks to Wall Street or bad spending habits being involved. In truth, eliminating payday loan lenders limits consumer choice and costs Texas jobs, both dire consequences in light of the recession-ravaged economy.

Better attack could have been prepared

Instituting zoning ordinances via HB 410 and SB 253 that would require personal unsecured loan and installment loan outlets to be at least 1,000 feet apart would only be the beginning, industry experts believe. When it comes to getting poverty fixed, it doesn’t really make sense to attack personal loan companies with 36 percent Annual Percentage Rate caps which would end up shutting down the corporations and putting more individuals out of work.

What “anti-poverty” coalitions really want is not shown in the zoning attacks. Communities without access have a higher poverty level in reality according to extant independent research. The Anti-Poverty Coalition of Greater Dallas and other charitable groups should take the time to review this research before putting all this effort into something that may really hurt the end goal.

Citations

Dallas Observer

blogs.dallasobserver.com/unfairpark/2011/04/new_anti-poverty_coalition_to.php

Payday Pundit

paydaypundit.org/2011/04/12/flawed-plan/

Texas HB 410

capitol.state.tx.us/BillLookup/History.aspx?LegSess=82R&Bill=HB410

Texas SB 253

capitol.state.tx.us/BillLookup/History.aspx?LegSess=82R&Bill=SB253

Texas Secretary of State

sos.state.tx.us/statdoc/faqs2800.shtml

Jobs fight poverty

youtu.be/w0v7OMt3vio

Inflation in China creates global ripple effect

The central bank of China declared over the weekend that its biggest banks must hold more cash in reserve, the fourth time in 2011 the reserve ratio has been increased. China’s financial leaders are struggling to keep inflation in check. A world addicted to cheap manufactured goods from China could be in for a shock. A 25 percent tariff on Chinese imports is the solution floated by Donald Trump, whose attempt to score points with such a canard has inspired laughter among the cognoscenti.

Economy is not growing the way the government wants

By requiring that banks once again raise their deposit reserve ratio, China’s central bank has been trying to cool down the nation’s overheating economy by raising interest rates and reducing the amount of cash accessible for loans. The announcement came on the heels of a government report that China’s economy has been growing at an annual rate of 9.7 percent, the most rapid pace in the world. The government is very unsure about the rising prices which this growing economy has brought on. The price for food or for gas went up a lot. Also, the home costs have become too high. Chinese businesses were told not to raise costs by Beijing while agricultural subsidies increased to stop the price increases. Citizens in China also got wage raises. That means the inflation program is just going up.

China inflation a global threat

Too much of China’s economic growth, according to analysts, is due to inflationary government spending on real estate development and multi-billion dollar infrastructure projects for instance roads and railways. Some predict that in spite of the government’s tries to douse the flames, China faces a rate of inflation approaching 5 percent for the next decade. With this inflation rate like this, China may have some difficulties. It might not end up dominating manufactured goods anymore. As Chinese wages and production costs rise, companies are asking higher costs for goods shipped overseas. Other economies may start to sell cheaper goods to big consumers for instance the U.S. and Europe. A contracting Chinese economy could hurt lots of businesses that count on China. This would consist of both General Motors and General Electric.

All the pressure

China has failed to stop the economy from overheating. Now, the pressure to have the yuan to rise in value is coming down even harder than ever on Beijing. It was suggested by Donald Trump that a tariff be put in place. This would be on Chinese imports at 25 percent. However experts say tariffs are a flawed response to China’s currency manipulation. A trade war between the United States and China would likely begin if there was a tariff started by Trump. A 25 percent tariff would make Chinese goods American consumers depend on more expensive, feeding United States rising prices. The United States is probably not able to trade with the United States anymore if China got angry over it. A Chinese appeal to the World Trade Organization would get rid of the tariff quickly anymore.

Articles cited

New York Times

nytimes.com/2011/04/18/business/global/18yuan.html?_r=1&emc=eta1

Associated Press

money.msn.com/business-news/article.aspx?feed=AP&date=20110418&id=13322016

CNN Money

money.cnn.com/2011/04/17/news/economy/trump_china_trade_war/index.htm

Pay up on your first-time homebuyer tax credit

Taxpayers who claimed the $7,500 first-time homebuyer tax credit two years back need to get ready to pay come tax day 2011, reports the Philadelphia Inquirer. Come Monday, April 18, the tax day blue will set in as the first of 15 annual payments come due. Source of article – First-time homebuyer tax credit: Get ready to pay by MoneyBlogNewz.

Using the first time home buyer credit

A tax credit close to 10 percent of a home price, for a total of $7,500 maximum, was given to homebuyers. The tax credit might be divided by unmarried homebuyers or married individuals filing separately could get $3,750 each, according to the House and Economic Recovery Act of 2008. The credit applied to homes purchased after April 8, 2008, however before January 1, 2009.

Many people were looking forward to the tax credit. It was popular. It was really just an interest-free loan, not “credit” as it was called. For the next fifteen years, first-time homebuyers who claimed the tax credit can be repaying the government in equal installments each year. Somebody who gets a credit of $7,500 will end up paying $500 a year. This isn’t charged if the house is sold right away though. When selling the home, the balance is due instantly. It is not paid over time anymore.

The homebuyer tax breaks given

Congress made two other tax credits extended on top of the first-time home buyer tax credit. There was an $8,000 credit given to first time home-buyers. Between January 1, 2009 and April 30, 2010 was when this credit was valid. As long as the contract had been signed by April 30, the sale could be completed by September 30, 2010, and the taxpayer could qualify for the credit. The second (for $6,500) applied to long-term homeowners who purchased a new or existing home between Nov 7, 2009, and April 30, 2010.

The tax credits, whether it be for $8,000 or $6,500, had to be repaid by the homeowners if the home is sold within three years of purchase or if it is a secondary residence. However, there’s a bit of an escape hatch if the property is sold within three years. If the profit on the sale (when in contrast to the original purchase price) is less than the amount of the tax credit, then homebuyers only need repay the amount of the profit.

IRS having trouble processing returns

The Inquirer reports that there are many issues the Internal Revenue Service is having with tax refunds for married couples filing jointly. Working class individuals who submitted Form 5405: “First-Time Homebuyer Credit and Repayment of the Credit” before February 22, 2011, forced the IRS to process their returns manually, creating slowdowns.

The $7,500 first-time home buyer tax credit can be repaid by 1 million U.S. households, according to the IRS. Those working class individuals who haven’t gotten their refunds yet can check IRS.gov and click the “Where’s My Refund?” link for more information.

Articles cited

Housing and Economic Recovery Act

frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=110_cong_bills&docid=f:h3221enr.txt.pdf

IRS

irs.gov/newsroom/article/0,,id=204671,00.html

Philadelphia Inquirer

philly.com/philly/phillywomen/119915874.html

How Canada helps first-time home buyers

youtube.com/watch?v=lg_i8SRhMO0

Military pay day loans not necessary as troops will still get paid

Congress has gotten its act together and approved the federal budget for fiscal year 2011. If it had not been passed or another emergency measure made, there would have been a government shutdown. Among the concerns concerning the shutdown, military service personnel would have to work without being paid and could have possibly had to turn to payday cash advance loans to keep the bills paid. The next quibble in government waits, though the federal shutdown was thankfully avoided.

How military personnel would have been effect

For Fiscal Year 2011, Congress upheld a bill. There was lots of stress about a government shutdown during all of this. Thankfully, the shutdown was averted, however it was well known that Congress would have continued to receive their pay while thousands of government employees would have gone on a forced furlough. Thousands more would have been forced to work without pay. Members of the military, for instance, wouldn’t be paid for their work during a shutdown. MSNBC states that military families may have had a really hard time though with this shutdown, especially since service personnel are not allowed to get subprime credit goods for instance payday advance.

Military personnel salaries

Nearly three of every four individuals in the armed services are in the six lowest ranks and are paid $31,000 a year or less. Mean earnings in the United States was estimated at $44,901 while median earnings were at $36,587, according to the Bureau of Labor Statistics. Military personal are making less than the average person no matter which scale you take. Service families tend to have debt issues, the Washington Post reported a 2008 Department of Defense survey saying. There are also issues with bankruptcy as shown in a 2004 study the Government Accountability Office did. It showed that bankruptcy was filed by 1.2 percent of military members that are on active duty. Last year, over 1.5 million people filed bankruptcy, which when compared to the U.S. population is only 0.5 percent.

Dire straits for those in harm’s way

The people who elect to serve this country do not get rewarded much for their efforts. There are also incentives to not go into debt; service members can lose their security clearance if they fall into unmanageable debts. Granted, had the shutdown occurred, there would have been options for a lot of people. The Naval Federal Member Bank offered low interest personal loans to members in case of a shutdown, like other credit unions and banks for federal employees have done in previous shutdowns.

Articles cited

MSNBC

msnbc.msn.com/id/42559366/ns/business-your_retirement/?gt1=43001

Washington Post

washingtonpost.com/blogs/blogpost/post/military-pay-faces-uncertain-future-troubling-for-financially-strapped-families/2011/04/08/AFHV311C_blog.html

Bureau of Labor Statistics

bls.gov/ncs/ocs/sp/nctb1346.pdf

U.S. Courts

uscourts.gov/uscourts/Statistics/BankruptcyStatistics/BankruptcyFilings/2010/0310_f2.pdf

Government Accountability Office

gao.gov/new.items/d04465r.pdf

Government Accountability Office

gao.gov/new.items/d04465r.pdf

Twitter obtains tax holiday windfall from City of San Francisco

In an 8-to-3 vote, the San Francisco Board of Supervisors has decided in favor of an ordinance that will grant local company Twitter among others a tax break from the city’s corporate payroll tax on brand new hires, reports the Los Angeles Times. Twitter will benefit from a 1.5 percent payroll tax shield over the next six years. While San Francisco Mayor Lee sees this as a positive step toward keeping Twitter around and revitalizing sagging business districts within the city, critics view the ordinance as a major misstep toward allowing corporations to hold cities as economic hostages. Article resource – City of San Francisco grants Twitter a payroll tax break by MoneyBlogNewz.

It is ‘rejuvenation’ for Twitter to be there

Lee says that keeping Twitter in San Francisco could only have happened with the payroll tax break.

“This moment represents a real step forward in the effort to revitalize and transform the Central Market area,” he said. “Central Market and the Tenderloin have been burdened with high vacancies and blight for decades.”

Lee said that he appreciated Twitter's help in those districts to the San Francisco Chronicle although Twitter officials did not make a statement about the Wednesday tax exclusion. Those areas need some job creation. It would help out San Francisco a lot.

“There is great synergy between Twitter and the arts organizations and small retail businesses who are looking to expand in the area," said Lee. "The city can work collaboratively with businesses, community-based organizations, property owners and area residents to catalyze meaningful change.”

Some upset about a tax holiday occurring

Over the next six years, the Twitter payroll tax break is projected to conserve the business about $22 million on its taxes, the Chronicle reports. That’s $22 million that San Francisco needs, said city supervisor John Avalos.

“I don’t believe giving an exception to our payroll tax is the way to go,” he said. “I believe that businesses in San Francisco and around the country should be socially responsible. … If we allow a company to threaten to leave, then give them a tax break so they don’t, we’re setting a bad precedent."

Articles cited

Los Angeles Times

latimesblogs.latimes.com/technology/2011/04/twitter-gets-6-year-payroll-tax-break-from-san-francisco-board-of-supervisors.html

San Francisco Chronicles

sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/04/05/BA7R1IQM9D.DTL

San Francisco Mayor's Office

sfmayor.org/index.aspx?page=330

Minnesota Gov. Tim Pawlenty on corporate tax holidays and offshoring

youtube.com/watch?v=MIRncAiu9Vw

Microsoft contributes grievance to European Union antitrust investigation of Google

Last fall Google found itself being investigated in an antitrust probe by European Union authorities. Smaller European web corporations, some owned by Microsoft, accused Google of shutting them out of search engine outcomes, as well as other anti-competitive techniques. On Thurs Microsoft stood behind some of its subsidiaries and filed its own complaint towards Google with the EU.

Google dealing with Microsoft complaint

Alleging that Google is limiting its access to critical data it needs to compete using YouTube and other Google services to the detriment of European customers, Microsoft filed a formal antitrust complaint in Europe against Google. The European Union Competitive Commission is doing an antitrust investigation towards Google already that Microsoft is now behind. Google controls about 95 percent of the Internet search market in Europe while Microsoft’s search engine, Bing, swims with the other minnows. There have, in the past, been a lot of antitrust complaints that Google has been used to dealing with about competition as it is Europe's center place for advertisers to go. After fighting antitrust investigations into Windows and billions in fines from the European Commission for years, Microsoft has reversed roles with its complaint towards Google.

Clear fights between Google and Bing

Microsoft’s European antitrust grievance towards Google is about background technologies such as “application programming interfaces” that unlock access to Google products and services. The Microsoft criticism states that Google makes it extremely hard for Bing and other search engines to have access to YouTube due to the application programming interfaces used. Google then becomes the primary search engine used. The Windows Phones cannot work with YouTube very well due to Google's programming, Microsoft suggests; which isn’t an issue on the iPhone or Android. Microsoft suspects that Windows Phones are getting the short shrift because of Bing because Apple doesn’t compete with Google in the search engine industry. The European Union antitrust is already looking into the idea that Google blocks advertisers needed for optimization which is another claim Microsoft has.

Google's chance to explain

Google can give its side of the story as EU Commissioner allowed. To be able to keep a consistency with Google ads, Google said the third-party software restraint is necessary. Advertisers are allowed to access any data that is available; there are no restraints. The stakes go up when Microsoft is involved though. Over $29 billion in 2010, or up to 10 percent of annual global revenues could be charged to Google has a fine. It could also be forced to change the way it does business in Europe. Before Microsoft threw its hat to the ring, the European Union commission said it would give Google a chance to stay away from a fine or conviction of wrongdoing by changing the way it does business in Europe.

Information from

Associated Press

finance.yahoo.com/news/Microsoft-throws-weight-apf-1337664829.html?x=0&sec=topStories&pos=6&asset=&ccode=

Los Angeles Times

latimesblogs.latimes.com/technology/2011/03/microsoft-files-european-antitrust-complaint-against-google.html

New York Times

nytimes.com/2011/04/01/technology/01google.html?src=busln

Anheuser Busch buys Goose Island in pursuit of world domination

Megabrewer Anheuser Busch has just completed purchasing Goose Island, a Chicago based microbrewery. Anheuser has been purchasing stakes in microbreweries for years. The chief rivals of the Budweiser brands, SAB Miller and Molson Coors, have been doing likewise. Macrobrewers take up well over 50 percent of the industry, and craft brews are thought to comprise less than 10 percent of all beer sales in The United States. Cynics contend macrobrewers like Budweiser do not want consumers to have the freedom of choice.

Microbrewery in Chicago not on the market long

About $38 million will be paid by Anheuser-Busch to get the Chicago Goose Island brewery, reports USA Today. Anheuser-Busch is the Budweiser beer macrobrewing family. Now, Goose Island will be an in-house brewery for Anheuser. Previously, Anheuser was already partnering with Fulton Street Brewery, maker of Goose Island beers, in a partnership. Anheuser purchased 52 percent of Goose Island’s shares outright, and the remaining 42 percent from Craft Brewers Alliance. BizJournals states that in 2008, Redhook and Widmer Brothers merged to create Craft Brewers Alliance Inc. as a small brew house conglomerate. About 32.5 percent of craft Brewers Alliance Inc. is owned by Anheuser-Busch which was bought by InBev a few years back.

Changes to distribution based on large companies

Goose Island, in accordance with the Chicago Sun Times, is selling control to Anheuser to expand the company’s ability to distribute its beer to customers in the face of growing demand. This is not uncommon, as it is not often advertised to the public that brewers, distillers and vintners all depend on distribution businesses to sell the beer, wine and spirits they produce to bars, restaurants and stores. Since large beverage corporations for instance Anheuser Busch/InBev, SABMiller and Molson-Coors have controlling interests in the distribution industry, small brewers such as Goose Island often have to sell themselves or partner with companies like Anheuser-Busch InBev and SABMiller in order to keep up with consumer demand, as the current distribution system is mandated by law. Microbrewers, in accordance with Reuters, accounted for 5 percent of beer sales in 2009.

Helping out the small brewers

The United States Senate currently has a bill before it called the Brewer’s Employment and Excise Relief Act, which would cut the excise tax on the first 60,000 barrels of beer produced by breweries in half, in accordance with Reuters. Breweries that make less than six million barrels a year would not have to pay as much of an excise tax. While producing beer, the first 60,000 barrels have a $7 excise tax currently. It jumps to $18 a barrel if more than that is made. Companies that stay under 6 million barrels a year will only have to pay $16 a barrel. This will benefit small businesses however not corporations. A version for the House of Representatives is supposedly in the works. The price of craft beer would go down with this helping out those that want to purchase craft beer.

Citations

USA Today

usatoday.com/money/industries/food/2011-03-28-anheuser-busch-goose-island.htm

Chicago Sun Times

newssun.suntimes.com/business/4552383-420/goose-island-brewery-sold-to-anheuser-busch.html

Biz journals

bizjournals.com/portland/news/2011/03/28/craft-brewers-sells-goose-island-stake.html

Reuters

reuters.com/article/2011/03/19/us-breweries-idUSTRE72I3E620110319?pageNumber=1

Deciding on the CD that meets your needs

A certificate of deposit (CD) resembles a savings account, in that a customer makes a federally insured, interest-accruing financial institution or credit union deposit. Unlike a savings account, however, a CD doesn’t allow early withdrawal without penalty. With some basic information, deciding on the CD that’s right for you is simple and pain-free. Resource for this article – Choosing the certificate of deposit that is right for you by MoneyBlogNewz.

Certificate of deposit

The certificate of deposit is a simple concept. It’s simple to get. The customer deposits a fixed amount of money for a specified term (from three months to five years) at a predetermined interest rate. Once the CD comes to maturity, the customer can either cash out the money with interest or roll it into another CD term. Most banks and credit unions allow customers to add funds to a CD at any time. There is an early withdrawal penalty. This usually eliminates interest and is taken from the principal balance. There is federal regulation for minimum penalty levels. There is no maximum level regulation though. Financial institutions can charge more if they want to.

What a bump-up CD is

For added flexibility, a bump-up CD enables you to opt for a higher rate on return, even mid-term. You are able to get the bank bump-up as long as you know the going market rate for CD interest rates. There is one problem with it though. The traditional CD has a trade-off rate lower than that of a regular CD at first. Every term, only one bump-up is allowed.

Go with the flow and stay away from withdrawal penalty

A liquid certificate of deposit enables you to withdraw money from your account, so long as the money invested at account inception remains untouched for at least seven days (the federal minimum; banks’ rules vary) and a minimum balance is maintained. Typically the liquid CD will allow penalty free withdrawals. You will find a maximum number of withdrawals per term in the agreement though. Generally, the liquid CD can have a lower rate of interest because of convenience. A traditional one may work better for interest. If you need the professional management of a liquid CD, try a Brokerage CD. It could have a higher rate of interest than a CD that is standard at banks.

There is the zero-coupon choice

A long-term CD option is the zero-coupon CD. At least 10 years are needed on a zero-coupon CD. The term does not have payments that occur directly. There is an investment done with all the money. At maturity, it’s all back-loaded. At 6 percent interest, you may get a 12 year, $100,000 CD, says Bankrate.com. The balance will end up at $100,000 by the end of it even though it could only cost $50,000 to open the zero-coupon CD.

Even though you do not have access to any zero-coupon CD funds, you may end up paying phantom tax on it yearly. For the most up-to-date information on the top yields for CDs; have a look at Bankrate.com.

Citations

Bankrate

bankrate.com/finance/cd/what-type-of-cd-is-best-1.aspx

Bankrate

bankrate.com/cd.aspx

What is a Certificate of Deposit

whatisacertificateofdeposit.com/

Wikipedia

en.wikipedia.org/wiki/Certificate_of_deposit

How to calculate a CD

youtube.com/watch?v=V1kYrm7MgYs