5 New Financial Products for the New Year
Interest rates are historically low and depositing money into savings is a breeze these days. That’s why more financial institutions and loan apps than ever are jumping on the cash machine bandwagon and offering consumers more ways to save. From savings accounts with high-interest rates to home loans, you can now find a plethora of services that cater specifically to your financial needs.
So, if you’re looking for new ways to take instant personal loans, grow your investment portfolio, and manage your savings, this article is for you. With that said, let’s take a look at 5 new financial products that will help you retire early or build an emergency fund.
1. High-Interest Savings Account
If you’re looking to put extra money towards your retirement fund, then high-interest savings accounts are a great option for you. Some banks and credit unions offer savings accounts with rates as high as 6%. You can use this money to make large lump sum payments towards your future. If you’re planning to buy a house or take your kids to college, high-interest savings accounts are the way to go.
2. Debt Consolidation Loan
If you have an existing credit card debt and are looking to consolidate it into a single loan with a single monthly payment, a debt consolidation loan is the way to go. Some lenders will even allow you to combine all of your existing debts into one loan. A debt consolidation loan only works in your favor if its interest rate is lower than that of your other outstanding loans. This way, you get one monthly payment that covers all of your debts. You can also use this loan to pay off a high-interest credit card.
3. Instant Personal Loan
It’s no secret that the best time to get a loan is right after the new year because most banks and lenders will offer you better rates. That’s exactly why a lot of online lenders, loan apps, and banks offer competitive interest rates to customers looking to borrow money. If you have a specific goal in mind, you can go as high as a few lakhs and pay back the loan within a few months to a year. Personal loan apps like CASHe help borrowers get instant personal loans in a day or two. All you need to do is download the app, create an account, submit minimal documentation, and apply for a specific amount. If approved, the cash is disbursed to your account almost instantly. You can use an instant personal loan to pay for several expenses such as electronics, healthcare etc.
4. Home Equity Loan
A home equity loan is a loan that you get against your home. The loan amount will usually be based on the remaining balance of your home as well as the current value of the house. With a home equity loan, you have the option to either leave the loan unpaid or pay it back within a certain amount of time. You can also use this loan to pay for a large purchase, like a new car or a vacation home.
5. Reverse Mortgages
If you have a good credit score and are looking to borrow money against your home, then go for a reverse mortgage. A reverse mortgage is a type of loan that allows you to access your home’s equity as a source of funding. You can use this loan to pay off your mortgage, pay off a high-interest credit card, or fund your kids’ college fund. With a reverse mortgage, you don’t have to make monthly payments or pay any interest. And the loan amount will stay the same until you die or sell your home.
Financial planning is a process that starts today. If you don’t have a goal in mind, your savings will remain stagnant and out of reach. With that said, the best way to start is to make a list of your financial goals and see which ones can be helped by one of these new financial products.