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What Is a SIMPLE 401(k) Plan & How Do You Utilize It?
https://www.sofi.com/learn/content/simple-401k/
The Savings Incentive Match Plan for Employees 401(k), or SIMPLE 401(k), is a type of retirement account that can be offered by companies with 100 employees or less. SIMPLE plans were created so that small businesses could have a cost-efficient way to offer retirement plans to their workers. Unlike many other workplace retirement plans, SIMPLE […]
APR vs. APY: What’s the Difference?
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Annual percentage rate (APR) and annual percentage yield (APY) are finance terms that describe how interest accrues, but they don’t mean the same thing. APR represents the yearly borrowing cost of loans or lines of credit, while APY measures how much interest you could earn from savings or investments. Understanding the difference between APR vs. […]
Guide To Understanding Layaway Plans
https://www.sofi.com/learn/content/how-does-layaway-work/
If you’ve heard of layaway, you may think it’s an old-fashioned concept, but it’s still available and can help people afford an item without breaking out their credit card. Here’s how layaway works in a nutshell: You buy an item over time via installment payments. When you’ve paid the full price, you get to take […]
What Is a Treasury Security? Treasury Bonds, Bills, and Notes
https://www.sofi.com/learn/content/treasury-security-bonds-bills-notes/
Treasury securities are like the rock-solid foundation of the financial world. In essence, they are IOUs that the U.S. government offers to investors in order to borrow money. There are various types, each with unique characteristics, including Treasury bonds, bills, and notes. Since they are seen as extremely safe investments, those seeking financial stability frequently […]
What Is Accrued Interest? Everything You Should Know
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Accrued interest represents the interest that accumulates in between payments on a financial product. Accrued interest can apply to both lending and investment products, ranging from home loans and credit cards to bonds or savings accounts. Accrued interest is different from regular interest, and it’s an important concept to understand. What Is Accrued Interest? When […]