Winter 2009 USAA Magazine - USAA.com

FAuto 101Smart FinancingYIBuying a new car?Visit USAA.COM(Search: Car BuyingService) and run thenumbers. If you needto finance, considerthe loan termscarefully. It’s no funto be upside-down,owing more thanyour car is worth.CashDownLoanTermsOption 120%3YR@9%Option 210%5YR@9%Option 30%7YR@9%AFTER After2 YEARS 2 yearsCarValueYouOwe$17,000$7,069$17,000$14,429$17,000$19,376Example for illustrative purposes only to show how a borrower can end up owing more thanthe value of the car purchased.Rainy-Day Funds Drying Up?Sprinkle in some CDs.A variable-rate certificate of deposit may bea good place to sock away emergency fundsthese days. Unlike a fixed-rate CD, the variable-rateCD works like a savings account.You can deposit more money into it over timein minimum increments of $50. Interest rateson these accounts are generally higher thanthose of traditional savings accounts, and canfluctuate based on market changes. So if ratesincrease after you’ve invested, you won’t belocked into a lower rate.USAA’s variable-rate CDs are available insix- and 12-month terms, with a $250 minimumdeposit. For details, go to USAA.COM(Search: Certificate of Deposit).ILLUSTRATION BY Miguel Davilla12usaa magazine WINTER 2009 (800) 531-USAA (8722)