The “Perfect” Time To Save

Everyone has an excuse to put off saving. You’re waiting until after the holidays, or until you pay off your credit card, or until the economy improves. Does this sound like you? The article, There’s No Perfect Time to Start Saving on Banks.com, states what I’ve been telling people for years. So many individuals of every age and income level are waiting for that “perfect” time to save, but the truth is, the perfect time to save is NOW. No matter what your income level I bet you can put a few dollars into an interest-bearing account each month.

Waiting for interest rates to rise again? Don’t hold your breath. I’ve only seen mine go down in the last few years. While interest is a wonderful way to make your money work for you, the main point is to get in the habit of saving. The “perfect” time to save will most likely never arrive. While financial experts recommend saving 10% of your income, every bit helps. Make a goal to put something into savings every month and you’ll be well on your way to a healthier financial future.

Read the full article here.

Interest Rates Drop for the First Quarter of 2009

According to their newest press release, the IRS is announced earlier today that interest rates for the first quarter of 2009 (beginning January 1, 2009) will drop by one percentage.

The new rates will be:

• Five (5) percent for overpayments [four (4) percent in the case of a corporation];
• Five (5) percent for underpayments;
• Seven (7) percent for large corporate underpayments; and
• Two and one-half (2.5) percent for the portion of a corporate overpayment exceeding $10,000.

“Under the Internal Revenue Code, the rate of interest is determined on a quarterly basis. For taxpayers other than corporations, the overpayment and underpayment rate is the federal short-term rate plus 3 percentage points. Generally, in the case of a corporation, the underpayment rate is the federal short-term rate plus 3 percentage points and the overpayment rate is the federal short-term rate plus 2 percentage points. The rate for large corporate underpayments is the federal short-term rate plus 5 percentage points. The rate on the portion of a corporate overpayment of tax exceeding $10,000 for a taxable period is the federal short-term rate plus one-half (0.5) of a percentage point.”

IRS Drops First Quarter 2008 Interest Rates

Recently, the IRS announced that they would be lowering interest rates for the first quarter of 2008, beginning on January 1, 2008. According to IRS codes the interest rate is determined on a quarterly basis and can either be changed or kept the same. This upcoming quarter the rates will drop by 1% and be set as follows:

• seven (7) percent for overpayments [six (6) percent in the case of a corporation]
• seven (7) percent for underpayments
• nine (9) percent for large corporate underpayments, and
• four and one-half (4.5) percent for the portion of a corporate overpayment exceeding $10,000.