Overview of APR
An Annual Percentage Rate, or APR, is a measure of the amount of interest that you must pay on a loan or credit card. Unfortunately, the amount that clients are forced to pay comprises many different aspects beyond just annual interest. The interest is generally compounded over many months. This is especially true if the client fails to pay off the entire balance at the end of each month. If these expenses continue to pile on as the months continue, not only will the client owe a lot of money, but his credit score will drop.
The borrower's history of this is measured as a number, called a credit score. This allows lenders to judge what APR to charge to clients. The lower a person's credit score, the higher her APR interest rate will be. This acts as a good motivation to pay off bills on time.
There are two different types of APR: Fixed and Variable. An unsecured loan generally is introduced as a fixed rate loan, meaning that your reimbursements stay the same for the entire life of the credit. Conversely, a secured loan runs at a variable rate. This rate allows borrowers to take advantage of low interest rates to pay off loans at their own pace. However, it also gives the lender the advantage of raising the APR and payments at any point in the life of the loan.
Lenders or credit agencies often compete through offering the lowest interest rate. This is the best way for customers to compare their available options. These numbers tend to represent the lowest possible APR rate that customers can be capable to receive. Most clients looking to borrow money have credit scores that aren't perfect. In these cases, people are often declined from receiving offers, and left to receive unsecured loans from another source offering a slightly higher APR.
Overview of EE Savings Bonds
EE savings bonds are government-supported products that can be purchased by individuals at given rates. They are low-risk investments that can be used to fund many customer objectives. They can be written off on taxes under things like retirement, charity and education. Bonds purchased after May 1, 2005, compound interest at a fixed rate. This allows customers who purchased to get an exact idea of its financial status or worth at any point in time. Ones purchased between May 2007 and April 30, 2005 earn a variable rate of interest that is base on the Treasury Department's security earnings over the given 5 year period. EE Bonds that are purchased before May 1997 are subject to earnings at varying rates based on current semiannual yields. These bonds can be purchased, regulated, and controlled through two different means: Electronic and Paper
Electronic EE Bonds
Almost any type of organization or individual can own these electronic bonds. Recipients such as individuals, partnerships, companies, estates, and trusts are also allowed to have electronic savings bond accounts. However, these entity accounts must be managed as an individual account. This means that they must be held and regulated by one individual within a corporation or group. They must act as the legal guardian over the company and the company's account. An account can be filled out to attain this electronic entity account and submit it to receive an online access account. The account's data can then be checked, regulated, and even transferred via electronic means. The security of these practices is of the upmost importance and requires high regulations to be met by the individual representative of the bond. This protects both the company and the state from improper handling of an investment.
Paper EE Bonds
Paper bonds are purchased at half their face value; however that bond is not worth its face vale until it has reached its maturity date. The face values of these bonds consist of amounts of $50, $75, $100, $200, $500, $1,000, and $5,000, and $10,000. Since the purchase price is half of the face value, the highest price that can be paid by a customer each year is $5000. This is also the maximum amount of money that can used to purchase a bond each year. These bonds are kept by the government and a notification of the account's information are given to the holder in the form of physical bond certificates printed on paper.