Latest news with #cash
CNET
6 days ago
- Business
- CNET
Bracing for a Recession? These Accounts Can Keep Your Money Safe
The best place for your cash depends on what you're using it for.A recession may not be as likely as it seemed earlier this year, at least according to some forecasts. But economic uncertainty is still forcing us to be cautious about our finances. From high prices to layoffs, the big financial struggles are out of our control. However, one thing we can do to help ourselves weather the ups and downs is to make sure our money is in the right place. Keeping your cash safe can help you preserve your savings and maximize your returns, regardless of an economic downturn. But not every account is the same, and some savings strategies make more sense in the long term than in the short term. Read more: Your Recession FAQs Answered: 5 Tips to Help You Prepare, Not Panic 💵 Where to keep your spending money Rewards checking account Even if your paycheck is directly deposited into your checking account, you shouldn't keep all your money there. Your checking account funds should cover everyday spending and bills, plus a cushion for other expenses. The rest of your cash should be in an account that earns a high interest rate so it can grow. Plus, when you keep money earmarked for savings in a separate account, you're not tempted to dip into it. You can still get returns with the right checking account. Some top high-yield checking accounts offer annual percentage yields of 1% or more, far better than the near 0% you'll get with a typical checking account. Why not earn some interest on your spending money if you can? With prices high across the board, every little bit helps. 🚨 Where to keep your emergency fund High-yield savings account An emergency fund is a must-have at any time but especially when the economy is shaky. Whether you're hit with a layoff or a sudden medical bill, your emergency fund can help you avoid going into debt to cover your expenses. The best place to keep an emergency fund is in a high-yield savings account where your money is easily accessible when you need it. Unlike traditional savings accounts, top HYSAs earn annual percentage yields more than 10 times the national average, with some topping 4% APY. With a higher yield, you'll benefit from compounding interest. That's when you're not just earning interest on your initial deposit but accumulating interest on top of the interest you already earned. Your money grows faster, giving you a bigger balance to draw from when the time comes. ⏲️ Where to keep savings for short-term goals Certificate of deposit If you're saving for a goal in the near future -- like buying a car or paying for home repairs -- a certificate of deposit is a smart option. Unlike savings accounts, which have variable rates, CDs offer a fixed rate that's locked in when you open the account. That means your earnings will never drop and your returns are guaranteed, regardless of what's happening in the economy. You must keep your money in the CD for the full term to avoid early withdrawal penalties. But with terms ranging from a few months to several years, it's easy to find a CD that fits your timeline. In fact, the early withdrawal fee can discourage you from tapping into your funds before you really need them. 🗓️ Where to keep savings for long-term goals It depends The best place for long-term savings goals depends on the goal. Retirement savings are best in tax-advantaged retirement accounts (more on that below) but you have plenty of options for other goals. For example, if you're saving for your child's college fund, consider a 529 plan. These state-sponsored savings plans allow relatives and other individuals to put aside money for a child's education and come with tax benefits like tax-free withdrawals if the money is used for educational expenses. You could also consider a low-risk government-backed investment like an I bond, which can preserve your purchasing power in the face of inflation. If you're saving for a down payment on a house, consider the pros and cons of accounts like homebuyer savings accounts, high-yield savings accounts and CDs. 🧑🦳 Where to keep your retirement savings Tax-advantaged retirement funds Retirement accounts like 401(k)s and IRAs are designed to help you maximize your tax advantages. Depending on the account you choose, you'll either pay taxes now or when you withdraw the funds, allowing you to account for a potentially lower income in retirement. If your employer offers contribution matching on a retirement savings plan, it's essentially free money to boost your nest egg. While brief stock market swings can cause panic, investing is still critical for long-term financial stability. The S&P 500 has historically delivered an annual return of about 10% for investors who stick it out over decades. Instead of trying to beat the market, focus more on your ideal investing strategy. A robo-advisor can help. If you're nearing retirement age, you may want to rebalance and diversify your portfolio so more of your retirement fund is in low-risk assets like CDs or bonds.
Telegraph
7 days ago
- Business
- Telegraph
High street bank ‘wages war on cash' after raising deposit charges
NatWest is pushing up charges for business customers who use cash, putting thousands of small business owners at risk of greater costs. Business customers will have to pay extra for cash deposits, cheque transactions and some online transfers from next month, when the changes come into force. Critics accused the bank of waging a war on cash and said businesses were being 'held to ransom with such high transaction costs'. From August 30, fees for cash payments will rise from 70p per £100 to 95p per £100. Meanwhile, cheque payments will increase from 70p to 75p per cheque. Cash is still the most trusted payment method in the UK, according to LINK, which manages the majority of Britain's cash machines. There was a 10pc rise in the use of cash last year, compared to 2023 according to Nationwide's analysis of withdrawals from its ATMs. Customers told the payment provider that cash gave them more control over their spending, and two thirds said it better protected them from fraud. Martin Quinn, of the campaign group Campaign for Cash, said: 'This is not great news for small businesses that rely on taking cash payments and need to bank their cash takings. 'This is a further example of the war on cash. It's like the big banks are slowly trying to kill off cash as a payment method, and businesses shouldn't be held to ransom with such high transaction costs. The only winners will be the likes of Visa and Mastercard rubbing their hands with glee.' It is the latest blow for businesses after Santander revealed it would start charging for accounts which were previously promised as 'free forever'. From October, thousands of small business owners will have to pay £9.99 in monthly charges. NatWest is also increasing the fee for processing BACS payments from 18p to 21p. The BACS system is a payment network for transfers such as direct debits. The charges will remain fixed until at least September 2027. Sarah Coles, of Hargreaves Lansdown, said the increases in NatWest fees mean they 'compare poorly' to other accounts. Banks such as HSBC and Monzo provide business banking with no monthly fees. Andrew Hagger, of Moneycomms, said: 'Unfortunately for businesses, the banks simply don't like cash transactions as it costs them money to collect, store and move around, and also requires them to continue staffing their branch counters/tills. 'The increase in costs brings in extra cash for the bank but at the same time the banks hope that by making the charges prohibitive it will discourage businesses from accepting as much cash and move more customers on to card and online payments.' The taxpayer was dragged into an 84pc stake in NatWest in 2008 under former Labour prime minister Gordon Brown. Since then, successive UK governments have been progressively selling the shares, recovering just £35bn from share sales and dividends. The last of the shares were sold in May, with an overall loss to the taxpayer of £10.5bn. A spokesman for NatWest said: 'It's been seven years since day-to-day banking charges have changed for our business customers. 'The cost of providing services has gone up, so we've had to review our charges.'
Daily Mail
23-07-2025
- Daily Mail
Shocking discovery during luggage check at Perth Airport
An Aussie mum was found to be carrying nearly $200,000 in cash hidden in her luggage after she was stopped at an airport in Western Australia. Footage published by the Australian Federal Police (AFP) on Wednesday, shows the moment security staff found the wads of cash in the 65-year-old woman's bag. The woman, who has not been identified, was stopped by staff at Perth Airport when 'irregularities' were spotted during a luggage screening in October, 2023. After searching her clothes and bag, staff allegedly discovered $191,850 in Australian dollars, along with a small amount of Euros and other currency. The AFP alleges the woman failed to declare the money in her luggage and had told officers it was savings. She also claimed some of it had been given to her by family, including her son and daughter-in-law, authorities said. An investigation by the Criminal Assets Confiscation Taskforce (CACT) found her son and daughter-in-law had purchased six properties in Western Australia. Their value averaged up to about $4.5million in the past six years. The investigation found the couple's spending and asset portfolio did not seem to align with the earnings they had declared to the Australian Taxation Office (ATO). Police alleged the couple 'hid their true earnings' to pay less tax than required. During the investigation, the couple also allegedly purchased a property in Gnangara, in Perth's northern suburbs, worth just over $2million. The taskforce applied to the Perth District Court to have multiple assets belonging to the woman and the couple restrained on June 24, 2025. This included seven properties in Western Australia collectively worth about $6.5million, including the Gnangara property, the almost $192,000 in cash seized at Perth Airport and a bank account containing about $236,000. There is no limit to the amount of cash travellers can bring in or take out of Australia but if it is more than $10,000 it must be declared. Under Commonwealth laws, the AFP can apply to restrain assets or money even when there is no related criminal investigation or prosecution. If legal proceedings are successful, the assets are liquidated and the proceeds placed in the Commonwealth Confiscated Assets Account (CAA).
The Independent
22-07-2025
- The Independent
Money experts warn of the costly mistake holidaymakers fall victim to
Holidaymakers risk unexpected expenses by relying solely on card payments abroad, with new research revealing that more than a third have found themselves caught out needing physical cash. Specifically, 39 per cent of those surveyed by the website Be Clever With Your Cash reported encountering unexpected situations where physical money was essential during their travels. The research highlighted that the most frequent instances requiring cash involved tipping, paying for taxi journeys, and shopping at smaller, independent retailers. Prepaid and specialist travel cards can make it easier to rely less on physical cash while travelling overseas. But those suddenly needing that cash could end up paying extra costs, the survey carried out by Opinium, among 2,000 people across the UK who have travelled abroad, indicates. The research found some people who had to make an emergency cash machine withdrawal on their last trip overseas were charged an ATM fee. Some people also said they turned to airport exchange desks for last-minute cash, even though they may potentially be getting a worse deal than if they had shopped around for their travel money and planned ahead. The website said that stepping outside major cities can also present challenges, as rural and remote areas in some countries could be less likely to accept cards. Amelia Murray, a money expert at Be Clever With Your Cash, said: 'There's still a blind spot when it comes to cash. Many people assume that having a fee-free card is enough, but that can be a false economy if you end up using an ATM abroad that charges or get stung by poor exchange rates. 'It's not about carrying wads of cash, it's about being prepared for those moments when a card simply won't cut it.' Ms Murray suggested packing a 'cash cushion' – a small amount of local currency that could be useful for tipping, local travel, or if holidaymakers end up somewhere that does not accept cards. She also suggested that holidaymakers make sure they understand their card's policy on fees and currency conversion before they travel. People may also want to check how much they would be covered for by their travel insurer if their cash is lost or stolen while they are abroad. Research released by financial information business Defaqto in May indicated that 91 per cent of annual and 86 per cent of single trip policies included cash cover as standard. Just over a third (35 per cent) of single trip travel insurance policies covered as much as £200 to £299, while a quarter (24 per cent) covered between £300 to £399, according to Defaqto 's analysis.
Yahoo
22-07-2025
- Business
- Yahoo
Some 52% of people ‘have recently been somewhere refusing or discouraging cash'
More than three-quarters (76%) of people believe it is important to have the option to pay with cash and four-fifths (82%) think all shops should accept it, a survey has found. More than half (52%) of people said they had been somewhere during the previous two months that had not accepted or had discouraged the use of cash – and 56% said this was an inconvenience to them. The research was commissioned by cash access and ATM network Link. It found that contactless via cards was the most preferred payment method among people surveyed, with 40% choosing this option. But nearly two-thirds (65%) of people said that physical coins and banknotes gave them confidence that 'nothing would go wrong', such as a payment outage. Cash remains particularly popular among people aged 55 and over, with 25% preferring cash compared with 8% of 25 to 34-year-olds, the survey indicated. Supermarkets and convenience stores are the most popular places where people have spent cash, the research indicated. Nearly seven in 10 (69%) people surveyed said they had used cash to pay for something in the previous two weeks. Three-quarters (75%) of people surveyed said they could easily make their day-to-day payments by phone or card. But 85% said they worry that a cashless society could exclude vulnerable groups, and 71% see cash as vital for personal freedom. Nearly two-thirds (63%) of people said they are unlikely to go completely cashless in the next 12 months. One in 12 (8%) said they lead 'cashless' lives. Graham Mott, Link director of strategy said: 'Cash remains a critical part of the UK's payment landscape. This research shows that, while digital payments are growing, cash continues to play a vital role in financial inclusion, budgeting and consumer choice.' YouGov carried out the survey among more than 2,200 people across the UK in June. Earlier this month, it emerged that the Bank of England will monitor cash acceptance on an ongoing basis, following a Treasury Committee report which raised concerns about the future of coins and banknotes. In its response to the report, the Government said the Bank had committed to continuing to include an additional question on cash acceptance in its survey of consumers, after it was introduced in January. The committee has highlighted how UK businesses and organisations can choose to refuse cash with no legal duty to accommodate customers' varying needs. Its report, published earlier this year, warned that a lack of action to tackle declining cash acceptance could lead to a two-tier society with the most vulnerable bearing the cost. MPs called for improved monitoring. The committee highlighted that vulnerable groups, such as people with learning disabilities, domestic abuse victims and the elderly, could be particularly affected.
