savings accounts http://www.wisebread.com/taxonomy/term/10302/all en-US 5 Sales Strategies Your Bank Uses to Make Money http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-sales-strategies-your-bank-uses-to-make-money" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-482043394.jpg" alt="Woman learning sales strategies her bank is using" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Many people fail to realize that their banking institution is, in fact, a business. And as such, they're using a wide range of marketing and sales strategies on you, whether you realize it or not. It's up to you to be the smart customer. Let's review five of the sales strategies you should keep an eye on.</p> <h2>1. Cash or Gift Card Offer for Opening an Account</h2> <p>When a new bank branch opens in your neighborhood, you may receive a mailer informing you that you could receive a hefty cash bonus or gift card for opening a new account. Free money may sound great, until you realize that there is a catch. Very often you have to meet a minimum balance deposit for a required period of time, effectively locking you into doing business with the bank. Think about it: How often do you switch banks? Consider whether you really want to deal with having a new bank account before you jump at the offer.</p> <h2>2. Free Checking Account</h2> <p>There's no such thing as a free lunch, and some <a href="http://www.wisebread.com/banks-still-offering-free-checking-and-great-interest-rates?ref=internal" target="_blank">free checking accounts</a> are no exception. Common requirements that banks impose on their customers include:</p> <ul> <li>Maintaining a minimum balance. Some banks require a minimum daily balance per statement cycle to have a $0 monthly maintenance fee;<br /> &nbsp;</li> <li>Meeting a minimum number of transactions. Some banks may require you to use your debit card a minimum of 10 to 12 times per month; or<br /> &nbsp;</li> <li>Making at least one monthly deposit. Often, that monthly deposit must be a direct deposit from your employer.</li> </ul> <p>Banks may set only one of these requirements or a combination of them. If you were to fall short on any of these requirements &mdash; such as making only 11 out of 12 required monthly transactions, or having an account balance below the required minimum for even just one day &mdash; you would get charged a fee for using your &quot;free&quot; checking account. Make sure you can easily meet their requirements before signing up.</p> <h2>3. Higher Interest Rate on Savings</h2> <p>A bank may offer what sounds like a very high savings rate, but the bank will use language such as &quot;up to 2% APY.&quot; To get the promised 2%, you'd have to keep a very high balance. Depending on the amount of money you actually have to put into the savings account, you might end up with a lower rate than you already have &mdash; 0.20% or 0.25% APY, for example. (See also: <a href="http://www.wisebread.com/5-best-online-savings-accounts?ref=seealso" target="_blank">Best Online Savings Accounts</a>)</p> <h2>4. ATM Fees Refund</h2> <p>Let's face it: ATM fees are annoying, and some banks will offer to reimburse all or some of the ATM fees to make up for the inconvenience. However, the limit of the ATM fee reimbursement varies widely per banks. Some banks offer $10, $15, or $20 per statement cycle or month. With the average ATM fee at $2.90 in 2016, you could easily eat up any of those refunds in just a few trips to the ATM. Consider your ATM needs and options in your area before you sign up with a bank with limited network ATMs. (See also: <a href="http://www.wisebread.com/8-ways-to-make-sure-you-never-pay-an-atm-fee?ref=seealso" target="_blank">8 Ways to Avoid ATM Fees</a>)</p> <h2>5. Mobile Check Deposit</h2> <p>You've seen the TV ads: a busy Millennial, mom, or retiree totally ecstatic about how they can save time by depositing checks on the go with their smartphone. Snap, click, deposit! It's great for the average person with a few checks for small amounts, but if you're a freelancer or small business owner who thinks this will save you trips to the bank, think again. There are all sorts of limits on the amount per check (and even amount per 30 days) that you can deposit this way. Some banks offer special equipment that allows higher limits, but still, it may not be as convenient as you think. (See also: <a href="http://www.wisebread.com/7-modern-ways-to-send-money-to-your-kid?ref=seealso" target="_blank">Modern Ways to Send Money Instead of Using a Check</a>)</p> <h2>The Bottom Line: Know Your Bank Fees!</h2> <p>When you're unhappy with your current financial institution, the promise of better banking through a higher savings interest rate, lack of fees, or refund of all ATM fees may sound enticing. While some of these selling points can indeed improve your financial situation, make sure to thoroughly review the requirements, if any, to gain access to the promised features. (See also: <a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps?ref=seealso" target="_blank">Switch to a Better Bank in 5 Easy Steps</a>)</p> <p>When facing a list of potential requirements, do a cost-benefit analysis. For example, can I leave a $5,000 deposit to get a 1.5% APY without putting any pressure on my monthly budget? If so, then take advantage of that higher savings rate. Be a smart bank user, shop around, and evaluate all of your options.</p> <h2 style="text-align: center;">Like this article? Pin it!&nbsp;</h2> <p>&nbsp;</p> <p style="text-align: center;"><a href="//www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2F5-sales-strategies-your-bank-uses-to-make-money&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2F5%20Sales%20Strategies%20Your%20Bank%20Uses%20to%20Make%20Money.jpg&amp;description=5%20Sales%20Strategies%20Your%20Bank%20Uses%20to%20Make%20Money" data-pin-do="buttonPin" data-pin-config="above" data-pin-color="red" data-pin-height="28"><img src="//assets.pinterest.com/images/pidgets/pinit_fg_en_rect_red_28.png" alt="" /></a> </p> <!-- Please call pinit.js only once per page --><!-- Please call pinit.js only once per page --><script type="text/javascript" async defer src="//assets.pinterest.com/js/pinit.js"></script></p> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/5%20Sales%20Strategies%20Your%20Bank%20Uses%20to%20Make%20Money.jpg" alt="5 Sales Strategies Your Bank Uses to Make Money" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/damian-davila">Damian Davila</a> of <a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps">Switch to a Better Bank in 5 Easy Steps</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-earn-a-good-interest-rate-in-a-low-rate-environment">How to Earn a Good Interest Rate in a Low-Rate Environment</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-signs-its-time-to-find-a-new-bank">5 Signs It&#039;s Time to Find a New Bank</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/why-savings-account-interest-rates-are-so-low">Why Savings Account Interest Rates Are So Low</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking atm fees atms cash incentives credit unions interest rates mobile deposits sales strategies savings accounts Tue, 21 Feb 2017 10:31:29 +0000 Damian Davila 1893288 at http://www.wisebread.com How to Help Your Kid Build Their First Budget http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-to-help-your-kid-build-their-first-budget" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/iStock-185090450.jpg" alt="" title="" class="imagecache imagecache-250w" width="250" height="142" /></a> </div> </div> </div> <p>Teenagers need guidance to build their first budget. But with sporting events, extracurriculars, and homework to worry about, it can be easy for parents to let budgeting skills fall through the cracks. And if you were never taught how to budget by your own parents, you might not know how to teach your children this skill.</p> <p>Helping your teenage child create a budget does not have to be overwhelming or time consuming. The important thing is to be proactive and consistent as you teach your teen how to handle money in the real world.</p> <h2>Offer a Monthly Allowance<strong> </strong></h2> <p>Providing a monthly allowance will help your child recognize the importance of long-term money planning. If they blow the entire month's worth of allowance in the first weekend, they'll learn an important lesson in delaying gratification. The most important thing you can do is be consistent about paying the allowance each month, and refuse to bail your child out of a problem if they use up their money before the month is over.</p> <p>If your teenager also decides to take a job, consider that a supplement to their allowance, rather than a substitute. Just as you would hate to see your initiative at work penalized by a reduction in pay, your child would hate to see their allowance docked just because they're showing initiative in getting a job.</p> <h2>Require Them to Take Over Some Necessary Spending</h2> <p>Many parents allow their teens to use their allowance and salary as pocket money. While there's nothing wrong with letting your kid have fun money, a big part of budgeting is making sure you have enough money to cover fixed bills. You can help your teenager learn to do this by asking them to take over a necessary bill.</p> <p>For example, you could ask them to cover a portion of the family cell phone plan, or their portion of the automobile insurance. Learning to pay these bills on time will give your teen an important first taste of what it will be like to pay their own way as an adult.</p> <h2>Create Targeted Savings Accounts<strong> </strong></h2> <p>It's likely that your child has some big goals for the future, whether that's going to a private college or buying a car. You can show them that they can achieve these financial goals through targeted savings accounts.</p> <p>Many banks allow you to create several targeted accounts, each with its own nickname. You can help your teen set up a few of these targeted savings accounts and encourage them to transfer some of their allowance or salary into the accounts when they get paid. They'll learn the importance of paying themselves first, and that consistent savings adds up. (See also: <a href="http://www.wisebread.com/build-savings-faster-with-a-multiple-account-strategy?ref=seealso" target="_blank">Build Savings Faster With a Multiple Account Strategy</a>)</p> <h2>Help Them Track Their Spending</h2> <p>Financial tracking is a necessary part of creating a healthy budget. They should know where their money is going each month, and whether those expenses were worthwhile. If they discover they're spending a good portion of their allowance on going to the movies, introduce options to them, like discounted movie passes or skipping the popcorn, soda, and snacks while there. Remind them to spend their money consciously.</p> <h2>Have Regular Budget Meetings</h2> <p>Plan on checking in at least once every two or three months to see how their finances are faring. They should get into the habit of reviewing how they've spent their money and whether those expenditures align with their goals. This will set your teen up to regularly review their budget on their own, and one day have regular budget meetings with their spouse.</p> <h2>Teach Your Children Well</h2> <p>Budgeting is the cornerstone of financial health, but knowing how to budget is hardly intuitive. Spending can easily become automatic and savings be pushed to the back burner. By getting your teen used to reviewing their finances and planning for their future, you're creating a powerful habit that will guide them wisely for the rest of their lives.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/emily-guy-birken">Emily Guy Birken</a> of <a href="http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-fun-books-that-will-get-your-kids-excited-about-money">10 Fun Books That Will Get Your Kids Excited About Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/7-unexpected-ways-stay-at-home-parents-save-big">7 Unexpected Ways Stay-at-Home Parents Save Big</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-use-new-toys-to-teach-kids-about-money">How to Use New Toys to Teach Kids About Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-frugal-living-skills-i-wish-my-parents-would-have-taught-me">8 Frugal Living Skills I Wish My Parents Would Have Taught Me</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/24-tips-for-having-a-baby-without-going-broke">24 Tips for Having a Baby Without Going Broke</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Budgeting Family allowances budget meetings family kids saving money savings accounts teenagers tracking spending Thu, 16 Feb 2017 11:00:09 +0000 Emily Guy Birken 1889843 at http://www.wisebread.com 8 Personal Finance Resolutions Anyone Can Master http://www.wisebread.com/8-personal-finance-resolutions-anyone-can-master <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-personal-finance-resolutions-anyone-can-master" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/friends_new_years_498059820.jpg" alt="Friends making personal finance resolutions they can master" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Working on your New Year's resolutions? Unfortunately, an incredible <a href="https://blog.bufferapp.com/the-science-of-new-years-resolutions-why-88-fail-and-how-to-make-them-work">88% of New Year's resolutions fail</a>. The big problem is that most people's resolutions aren't specific enough, or they're too ambitious.</p> <p>Ready to get 2017 off to a good money start? Try out these eight financial resolutions. They're simple enough so that anyone can accomplish them in the new year.</p> <h2>1. Build a Household Budget</h2> <p>We know it doesn't sound like fun, but crafting a household budget is the best financial move that you can make in 2017. Why? A budget tells you how much money you should be spending each month on everything from groceries to eating out to streaming movies on Amazon. Without a budget, your odds of overspending will soar. Fortunately, <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps">making a budget</a> isn't nearly as challenging as you might think.</p> <h2>2. Pay Down Your Credit Card Debt</h2> <p>Your credit card debt might look overwhelming, but paying down this expensive debt in 2017 is actually a fairly easy task &mdash; if you commit. There are several different ways you can <a href="http://www.wisebread.com/the-7-best-credit-card-debt-elimination-strategies">attack your credit card debt</a>, from paying off the cards with the lowest balance first to prioritizing those with the highest interest rates. (See also: <a href="http://www.wisebread.com/fastest-way-to-pay-off-10000-in-credit-card-debt?ref=seealso">The Fastest Way to Pay Down $10,000 in Credit Card Debt</a>)</p> <h2>3. Build an Emergency Fund</h2> <p>What happens if your home furnace conks out? What if your car's transmission dies? Can you cover these unexpected expenses with cash? Or would you have to charge the repairs? If you have an emergency fund, you'll always have cash on hand to cover life's unexpected disasters. Financial experts say you should have at least six months' worth of daily living expenses saved in an emergency fund at all times. That might sound like a difficult goal, but you can <a href="http://www.wisebread.com/change-jars-and-8-other-clever-ways-to-build-an-emergency-fund">build this fund</a> as slowly as you'd like.</p> <h2>4. Cut Out One Unnecessary Expense</h2> <p>Vowing to cut your spending isn't the easiest New Year's resolution to keep; it's simply too vague. Instead, vow to <a href="http://www.wisebread.com/7-unnecessary-household-expenses-you-can-cut-today">cut one unnecessary expense</a> from your routine. For instance, you might vow to stop buying coffee on the way to work, and instead brew your own java at home.</p> <h2>5. Boost Your Life Insurance Coverage</h2> <p>If you were to unexpectedly die, would you have enough of a life insurance payout to provide financial protection for your loved ones? If not, it might be time to boost your <a href="http://www.wisebread.com/term-vs-whole-life-insurance-heres-how-to-choose">life insurance coverage</a>. Fortunately, this is an especially easy New Year's resolution to keep: Just call an insurance agent.</p> <h2>6. Protect Your Things</h2> <p>Whether you're a renter or a homeowner, you need to make sure that you have enough insurance to replace the items in your home, should they be stolen or destroyed. Resolve in 2017 to meet with an insurance agent to discuss either homeowners' or <a href="http://www.wisebread.com/5-reasons-you-definitely-need-renters-insurance">renters' insurance</a>.</p> <h2>7. Pay Your Bills on Time Every Month</h2> <p>Want a <a href="http://www.wisebread.com/7-ways-to-increase-your-credit-score-quickly">sky-high credit score</a>? Then pay your bills on time every month. Doing this will slowly, but steadily, cause your FICO credit score to rise. And a higher credit score will mean lower interest rates when you're borrowing money later.</p> <h2>8. Find a Better Savings Account</h2> <p>You might think savings accounts are a fairly boring place to stash your dollars. The truth, though, is that some savings accounts are better than others, and some provide far better interest. Make a resolution this year to <a href="http://www.wisebread.com/the-types-of-savings-accounts-which-is-right-for-you">find a savings account</a> that will help you build your savings at a faster clip.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/8-personal-finance-resolutions-anyone-can-master">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/its-never-too-late-to-fix-these-5-money-mistakes-from-your-past">It&#039;s Never Too Late to Fix These 5 Money Mistakes From Your Past</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-to-make-before-moving-out-on-your-own">5 Money Moves to Make Before Moving Out on Your Own</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/youve-been-saving-money-all-wrong-heres-why">You&#039;ve Been Saving Money All Wrong. Here&#039;s Why</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-new-year-budget-resolutions-you-should-make-now">4 New Year Budget Resolutions You Should Make Now</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-money-moments-that-should-be-on-everyones-bucket-list">8 Money Moments That Should Be On Everyone&#039;s Bucket List</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance budgeting debt emergency funds goals life insurance money resolutions new year's resolutions saving money savings accounts Wed, 28 Dec 2016 10:00:11 +0000 Dan Rafter 1863676 at http://www.wisebread.com You've Been Saving Money All Wrong. Here's Why http://www.wisebread.com/youve-been-saving-money-all-wrong-heres-why <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/youve-been-saving-money-all-wrong-heres-why" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_holding_cash_514781336.jpg" alt="Woman learning she&#039;s been saving money all wrong" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If your savings account is not as big as you'd like it to be, it turns out that you're not alone. Americans are notoriously bad at saving for retirement &mdash; and one in three have nothing saved for retirement at all.</p> <p>While Social Security may still factor into your savings, it's not enough to cover the cost of retirement, let alone the other expenses you're trying to save for before even reaching retirement.</p> <p>But don't let the statistics get you down. There are some easy ways to change your savings habits. You'll be surprised by how quickly little tweaks can make a big difference in your accounts.</p> <h2>1. Wrong: An All or Nothing Attitude to Saving</h2> <p>When you come up with a savings plan, you may be tempted to cut out <em>all </em>of your discretionary expenditures. On paper, this looks reasonable enough. You can eliminate all of your nonessential costs and put that money right into your savings account. Perfect, right? However, an all or nothing approach is going to set you up for failure down the road.</p> <p>Just as with dieting, if the adjustments you make are not sustainable, you're not going to make real change in the long run. Instead, you're likely to get frustrated and give up altogether. When you deny yourself any and all expenses, whether it's getting a coffee at your favorite cafe or going out for drinks with friends, you're likely to feel deprived. Plus, this mentality doesn't allow for you to slip up or make exceptions.</p> <h3>Right: Be Reasonable</h3> <p>It's better to consistently save a dollar every day and be successful at it than to aim to save $100 a week, realize that's impossible, and then give up. Set a goal that is realistic and stick to it. Write down your plan and check in consistently to see how you are doing.</p> <p>The name of the game is moderation. Your savings isn't all or nothing. Don't get discouraged if you slip up. If you spend more on Wednesday, spend less on Thursday, but keep it realistic. Take another look at your budget and see if you can make up for the slip somewhere else.</p> <h2>2. Wrong: Cutting Out Activities or Socializing</h2> <p>You may think an easy way to save money is by cutting out activities entirely. Since there can be a hefty price tag that comes along with social activities, like going out for drinks or other entertainment, you may conclude that cutting out socializing completely is another way to save. However, these strategies are going to leave you feeling isolated and lacking the supportive environment you need to achieve your savings goals.</p> <p>See also: <a href="http://www.wisebread.com/73-easy-ways-to-save-money-today?ref=seealso">73 Easy Ways to Save Money Today</a></p> <h3>Right: Find Inexpensive Ways to Keep in Touch</h3> <p>Instead of cutting out social activities entirely, why not find free or inexpensive alternatives?</p> <p>Rather than meeting friends at a pricey restaurant, invite them over for a home-cooked meal or a pot luck. Plan a game or movie night, or look up free events in your town to attend together.</p> <p>Exercise is also a great, inexpensive way to spend time with friends. Organize a game of Frisbee or flag football, or go for a run with friends. Do it often enough, and you could save on an expensive gym membership, too.</p> <p>In fact, your friends can be great allies in your fitness and savings endeavors. You don't have to choose between your relationships and your budget. Let your friends and family know what your goals are and ask them to help you stay on track. That way they can be a support system, instead of a roadblock.</p> <h2>3. Wrong: Focusing All of Your Attention on Cutting Costs</h2> <p>It seems foolproof to focus on decreasing your expenses so that you can save more money. But rather than putting all your energy into cutting your expenses to the bone, spend some of that energy <em>earning </em>extra income.</p> <p>If you're spending too much time calculating your budget, you'll end up feeling too limited. Your mindset will always be &quot;I don't have enough.&quot;</p> <p>The budget mindset is restrictive &mdash; and taxing on your stores of energy. Maintaining discipline is hard. Instead, use that energy to help you earn more money to put toward your savings goals.</p> <h3>Right: Work More, Spend Less</h3> <p>Taking on a second job can make a huge difference to your savings account, mostly because you're earning more &mdash; and, hopefully, saving more.</p> <p>Plus, since you're spending more time at work, you'll have less time to spend on frivolous things &mdash; or to worry about sticking to your budget.</p> <p>See also: <a href="http://www.wisebread.com/100-ways-to-make-more-money-this-year?ref=seealso2">100+ Ways to Make More Money This Year</a></p> <h2>4. Wrong: You Never Carry Cash, So You Don't Spend It</h2> <p>You may be under the impression that if you don't have cash with you, you will automatically spend less money. However, if you're mindlessly putting little expenditures on your credit or debit card, you're actually much less likely to be keeping track of how you are spending money.</p> <p>Cash can be your best friend when you're trying to save money, especially for those of us who are a bit less disciplined and aware of our spending habits.</p> <h3>Right: Use Cash and Cards Wisely</h3> <p>Allocate yourself a daily budget and leave home with that amount of cash in your wallet. This makes money feel real in a way that mindlessly swiping your card can't. It can help you to stay accountable to yourself. Once you run out of cash for the day, you are done spending.</p> <p>Of course, using a credit card does still hold advantages for people with more self control. You may want to consider applying for the <a href="http://www.wisebread.com/5-best-cash-back-credit-cards?ref=internal">best rewards credit card</a> for your lifestyle, and then strategically using that card so you can earn points or miles on your purchases. Plus, you'll have a digital record of your expenses to look back on at the end of the month and see how you did. You can set up email or phone alerts, too, to help remind you of just how much you're spending on a daily basis.</p> <h2>5. Wrong: Ignoring Budgeting or Not Making a Budget at All</h2> <p>Unfortunately, saving doesn't just happen without making a real, concerted effort. It is crucial to your success that you have a concrete plan in place to make sure you're spending where you need to and saving where you can. (See also: <a href="http://www.wisebread.com/build-your-first-budget-in-5-easy-steps?ref=seealso">Build Your First Budget in 5 Easy Steps</a>)</p> <h3>Right: Make a Comprehensive Budget</h3> <p>Make a clear and realistic plan. Write it down and revise it every month or so to check if you're staying on track. After paying your expenses for the month, put the rest of your money into savings. It may be a small amount at first, but you can increase it later, once your new habits have settled in.</p> <p>Even if you're just saving a little bit, if you're committed to putting it away every month, it will add up &mdash; and faster than you expect.</p> <h2>6. Wrong: Setting up a Traditional Savings Account at Your Local Bank</h2> <p>Traditional savings accounts do not offer the interest rates they used to. If you're keeping all of your money in a regular savings account, you're basically giving away money that you could be earning in interest.</p> <h3>Right: Open an Online Account</h3> <p>By <a href="http://www.wisebread.com/banks-still-offering-free-checking-and-great-interest-rates?ref=internal">moving your savings to an online account</a>, you can earn 1%&ndash;2%. That's not much, but it's more than a traditional bank and enough to add a few additional dollars a year to your savings, depending on how much money you have in your account. Other options, like CDs, pay a bit more interest, but don't offer easy access to your funds.</p> <p>Decide how much you want to put into your savings account, and set up an automatic transfer so you're committed to saving that money every month.</p> <p>Saving money doesn't have to be a drudge, and the good news is that a few small changes can make a big difference. You may even find that you are quickly becoming the exception to the discouraging savings trends nationwide.</p> <h2 style="text-align: center;">Like this article? Pin it!</h2> <p>&nbsp;</p> <p style="text-align: center;"><a href="//www.pinterest.com/pin/create/button/?url=http%3A%2F%2Fwww.wisebread.com%2Fyouve-been-saving-money-all-wrong-heres-why&amp;media=http%3A%2F%2Fwww.wisebread.com%2Ffiles%2Ffruganomics%2Fu5180%2FYouve%20Been%20Saving%20Money%20All%20Wrong.%20Heres%20Why.jpg&amp;description=Youve%20Been%20Saving%20Money%20All%20Wrong.%20Heres%20Why" data-pin-do="buttonPin" data-pin-config="above" data-pin-color="red" data-pin-height="28"><img src="//assets.pinterest.com/images/pidgets/pinit_fg_en_rect_red_28.png" alt="" /></a> </p> <!-- Please call pinit.js only once per page --><!-- Please call pinit.js only once per page --><script type="text/javascript" async defer src="//assets.pinterest.com/js/pinit.js"></script></p> <p style="text-align: center;"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/u5180/Youve%20Been%20Saving%20Money%20All%20Wrong.%20Heres%20Why.jpg" alt="You've Been Saving Money All Wrong. Here's Why" width="250" height="374" /></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/nick-wharton">Nick Wharton</a> of <a href="http://www.wisebread.com/youve-been-saving-money-all-wrong-heres-why">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-come-up-with-1000-in-the-next-30-days">How to Come Up With $1,000 in the Next 30 Days</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-personal-finance-resolutions-anyone-can-master">8 Personal Finance Resolutions Anyone Can Master</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/reach-your-money-goals-faster-with-a-simple-naming-trick">Reach Your Money Goals Faster With a Simple Naming Trick</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-easy-way-to-save-up-a-big-travel-budget">The Easy Way to Save Up a Big Travel Budget</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/forget-saving25-place-to-look-for-spare-change">Forget Saving...25 Places to Look for Spare Change</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance bank accounts budgeting cash cutting costs expenses Mistakes saving money savings accounts Fri, 16 Dec 2016 10:30:28 +0000 Nick Wharton 1853984 at http://www.wisebread.com Switch to a Better Bank in 5 Easy Steps http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/switch-to-a-better-bank-in-5-easy-steps" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_phone_check_78686861.jpg" alt="Woman switching to a new bank in 5 easy steps" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Switching banks is a pain. You have to close accounts, research new banks, and rework all those automatic bill payments you've set up at the financial institution you'd like to leave.</p> <p>But sometimes making the switch is the right move. Maybe your bank has raised its fees. Maybe it's closed the branches that operated near your home or work. And if you're moving, you might have no choice but to make the switch.</p> <p>Yes, switching banks does take a bit of work. But it's relatively simple work.</p> <p>If you need or want to switch to a new bank, follow this simple step-by-step guide. Doing so will ease any stress from jumping to a new financial institution.</p> <h2>1. Research a New Bank</h2> <p>Before closing any accounts at your current bank, make sure that you spend some time researching a new home for your money. Choose a bank that offers online bill pay and direct deposit, of course. You also want one that offers free checking and higher interest rates on savings accounts &mdash; relatively speaking, since interest rates are still near historic lows.</p> <p>Customer service matters, too. Search for a bank that has plenty of ATMs near you and that still operates branches within a short drive of your home or office. You might also consider investigating a credit union or an online bank, both solid alternatives to traditional banks.</p> <p>The key in this search is the checking account. Make sure you know exactly how your new checking account will operate. Is there a minimum-balance requirement? Are there fees if you make too many withdrawals during a month? How large of an initial deposit do you need to set up your new account? These are all key questions that you should answer during your research.</p> <h2>2. Open Your New Checking Account</h2> <p>Once you select a new bank, start the switching process by opening a checking account there. Do this before you close the checking account at the bank you are leaving. You might still need money in your old account to cover payments that haven't yet cleared.</p> <p>To open a checking account, you'll need some basic information. You'll need to provide, of course, your name, address, and date of birth. But you'll also need to provide your Social Security number and one official piece of photo identification. Usually, this will be your driver's license. But banks will also accept an official state ID card or your passport.</p> <p>Your bank will then require you to make an initial deposit into your new account. How big this deposit must be will vary by bank.</p> <h2>3. Cancel Automatic Payments at the Bank You Are Leaving</h2> <p>Once you've established a checking account at your new bank, it's time to cancel any automatic payments that you've set up at the bank you are leaving. Do this right away, so that your creditors don't try to take money out of an account that is either empty or has been officially closed.</p> <p>Then set up the same automatic payments with your new bank. You'll need your bank's routing number and address and your checking account number to do this.</p> <p>If you had signed up to have your paycheck deposited directly into your old account, cancel that direct-deposit arrangement, too. Then contact your company's human resources department to move your direct deposits to your new checking account.</p> <h2>4. Close Your Old Account &mdash; When the Time Is Right</h2> <p>You can now close your old account, if all of the checks you've written against it have cleared. Compare your check register against your online account to make sure.</p> <p>If you don't do this? Any checks that have not yet cleared will bounce if your old account is closed. The companies that you were paying might charge you late fees if this happens. This danger is why it usually makes sense to wait at least a month after opening your new checking account before closing your old one.</p> <h2>5. Get It in Writing</h2> <p>When you're sure that all your checks and payments have cleared, you can officially close that old account. Doing this in person might be the best choice. That way you can instantly receive written verification that your account has been closed. You'll want this documentation in case your former bank reopens your account or claims that it was never shut down in the first place.</p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">5 Sales Strategies Your Bank Uses to Make Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/think-twice-before-ditching-your-current-bank">Think Twice Before Ditching Your Current Bank</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-earn-a-good-interest-rate-in-a-low-rate-environment">How to Earn a Good Interest Rate in a Low-Rate Environment</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-to-love-your-bank">6 Reasons to Love Your Bank</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-things-your-teen-needs-or-doesn-t-need-in-a-bank-account">5 Things Your Teen Needs (or Doesn’t Need) in a Bank Account</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking automatic payments checking accounts credit unions customer service interest rates savings accounts switching banks Fri, 04 Nov 2016 10:00:06 +0000 Dan Rafter 1826531 at http://www.wisebread.com Build Savings Faster With a Multiple Account Strategy http://www.wisebread.com/build-savings-faster-with-a-multiple-account-strategy <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/build-savings-faster-with-a-multiple-account-strategy" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_saving_money_000056328212.jpg" alt="Woman building savings faster with multiple accounts" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Americans are not exactly world-class savers. According to an Associated Press survey, two-thirds of U.S. adults would have <a href="http://bigstory.ap.org/article/965e48ed609245539ed315f83e01b6a2">difficulty coming up with $1,000</a> to cover an emergency.</p> <p>If that's you, a great first step would be opening a dedicated savings account especially earmarked for emergencies. That's because mingled money leaks. When cash isn't in a separate, dedicated savings account, it tends to get spent.</p> <p>And if you really want to take your savings to the next level, open <em>three </em>accounts. At first, that may sound crazy. But there are three distinct uses for savings, and you'll find it more effective to build savings if you use a dedicated account for each one. (See also: <a href="http://www.wisebread.com/5-best-online-savings-accounts?utm_source=wisebread&amp;utm_medium=seealso&amp;utm_campaign=article">Best Online Savings Accounts</a>)</p> <h2>1. Emergencies</h2> <p>In life, stuff happens. Unexpected stuff. Expensive stuff. For some of that, there's insurance, but for everything else, you need money in an emergency fund. Aim for building a fund that contains three to six months' worth of necessary living expenses.</p> <p>What counts as &quot;necessary?&quot; Well, imagine losing your job tomorrow. Your thoughts probably wouldn't run toward planning your next vacation. They would be focused on the essentials, such as your mortgage or rent payment, food, utilities, gasoline, and insurance. Add up how much all of your necessary expenses would cost for one month. Then multiply that figure by three and six. That's the range you're shooting for.</p> <p>The low end might be sufficient if you have relatively few movable breaking parts in your life. For example, you're single, rent an apartment, and have a fairly stable job &mdash; or at least in-demand job skills.</p> <p>If you're married, have kids, and own a home, you have much more at stake. In that situation, aim for six months' worth of essential living expenses.</p> <p>If you don't have a fully stocked emergency fund, aim for putting 10%&ndash;15% of your monthly gross income into savings each month via automatic transfer from your checking account. You'll be surprised at how quickly this adds up.</p> <h2>2. Big-Ticket Items</h2> <p>How old is your home's furnace, air conditioner, and roof? When are you likely to need to replace your car? What other expensive items will you need &mdash; or do you <em>want &mdash; </em>to buy in the next five to 10 years? It would be ideal if you could pay cash, and that calls for a big-ticket item fund. Here's how to build it.</p> <p>Once your emergency fund is built, redirect most of the money you had been depositing in emergency savings toward investing for your retirement or your kids' college, instead, and then redirect any remaining funds toward a big-ticket item savings account.</p> <p>For example, if you were putting 10% into savings, redirect 8% toward investing and 2% toward this second savings account. If you had been saving 15%, redirect 10% toward investing and 5% toward big-ticket items.</p> <h2>3. Periodic Bills and Expenses</h2> <p>Some bills and expenses need to be paid every month, such as your mortgage or rent, utilities, and groceries. Others need to be paid at <em>some</em> point each year, but not every month. Examples include a semi-annual auto insurance premium, an annual homeowner's or life insurance premium, vacations, and end-of-year holiday gifts.</p> <p>For all such periodic bills and expenses, make sure one-twelfth of the total annual amount is in your monthly budget. Transfer that amount to a dedicated savings account each month. When those expenses need to be paid, the money will be available.</p> <h2>Practical Applications</h2> <p>In our household, we use an online bank for our savings accounts. It pays a decent interest rate, but what I really like about it is it allows account holders to maintain multiple accounts and to even give them unique names.</p> <p>When I login, I can see the balance in each of <em>nine</em> savings accounts: our emergency fund, two big-ticket item funds (one for the replacement of our furnace and air conditioner, which are 17 years old, and a second one for a trip to Paris my wife and I want to take in three years), and six periodic expense accounts (our regular vacations account, four different insurance policy accounts, and our Christmas gifts account).</p> <p>They all add up to one very big benefit: peace of mind.</p> <p>Remember, mingled money leaks. To build savings for emergencies, big-ticket purchases, and periodic bills and expenses, use multiple savings accounts.</p> <p><em>Do you have more than one savings account? How do you manage them?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/matt-bell">Matt Bell</a> of <a href="http://www.wisebread.com/build-savings-faster-with-a-multiple-account-strategy">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-easy-way-to-save-up-a-big-travel-budget">The Easy Way to Save Up a Big Travel Budget</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/stop-making-these-7-basic-budget-mistakes">Stop Making These 7 Basic Budget Mistakes</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-types-of-savings-accounts-which-is-right-for-you">The Types of Savings Accounts: Which Is Right For You?</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-money-moves-to-make-before-moving-out-on-your-own">5 Money Moves to Make Before Moving Out on Your Own</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-personal-finance-resolutions-anyone-can-master">8 Personal Finance Resolutions Anyone Can Master</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking big ticket items bills emergency funds expenses savings accounts vacations Fri, 03 Jun 2016 09:30:23 +0000 Matt Bell 1721737 at http://www.wisebread.com 7 Investment Accounts All 30-Somethings Should Have http://www.wisebread.com/7-investment-accounts-all-30-somethings-should-have <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/7-investment-accounts-all-30-somethings-should-have" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_tablet_000065136353.jpg" alt="30-something learning which investment accounts she should have" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>You're in your 30s now. If you're finally looking to get settled in your financial life, you may want to consider ways to build wealth over the long term. But that checking account alone isn't gonna cut it. It's time to examine the options out there for someone in their 30s who finally has a little bit of money to invest.</p> <p>Here are seven essential investment accounts all 30-somethings should have.</p> <h2>1. 401K, If Available to You</h2> <p>If you're employed full-time, your company may offer a retirement plan that gives you access to a number of mutual funds and other investments, plus the great tax advantages that come with it. Under a 401K, 403B, or similar plan, contributions are deducted from your pre-tax income, and most employers will match a certain percentage of what you put in. Now that fewer employers are offering pensions, the 401K has become the primary vehicle for saving for retirement. Pumping cash into this account while you're still relatively young gives your investments plenty of time to rise in value and give you a sizable nest egg. Even better, your investment is tax-deferred until you begin making withdrawals.</p> <h2>2. Traditional IRA</h2> <p>You don't necessarily need a traditional Individual Retirement Account if you have a 401K with an employer match. But if you have 401K from an old employer, it might make sense to roll it into an IRA, because you have a much broader choice of investments to choose from &mdash; many with lower fees. With an IRA, you can invest in practically anything, including individual stocks, mutual funds, bonds, and even commodities. Traditional IRAs are also great for people who are self-employed or otherwise don't have access to a 401K. Like a 401K, your contributions are deducted from your taxable income. You can open an IRA at most discount brokers such as Fidelity, TD Ameritrade, and E*TRADE.</p> <h2>3. Roth IRA</h2> <p>This account is a little bit like a 401K in reverse. The tax advantage is on the back end, when you can withdraw money upon retirement without paying tax on the earnings. That's because contributions to a Roth IRA come from earnings after tax, unlike 401Ks, which draw on pre-tax income. Under a Roth IRA, you can contribute up to $5,500 annually, and you can withdraw contributions (but not your gains) before retirement age without paying a penalty.</p> <h2>4. Taxable Brokerage Account</h2> <p>While your main focus should be investing in tax-advantaged accounts that are designed for retirement, it's good to have some investments available in this type of account due to the flexibility. You don't need to wait until retirement age to access funds in this account, for one thing. That means you can use it to boost your income now, through the sale of stock or the gain of dividends. If you hold on to investments in a taxable account for a long time (generally over a year), you'll pay only the long-term capital gains tax (mostly likely 15%) when you sell.</p> <h2>5. 529 College Savings Plan (If You Have Kids)</h2> <p>College is pricey, so nearly every state enables people to save for college by investing money for education in a tax-advantaged way. A 529 plan is similar to a Roth IRA, in that investments will grow tax-free until they're withdrawn, as long as they are spent on higher education. In many states, you also get a tax break from the contributions. It's possible to open a 529 for your child as soon as they have a social security number. Even if you don't have kids yet, you can designate a beneficiary now &mdash; such as a niece or nephew &mdash; and change it to your own child later. (See also: <a href="http://www.wisebread.com/the-9-best-state-529-college-savings-plans?ref=seealso">The 9 Best State 529 College Savings Plans</a>)</p> <h2>6. High-Interest Savings Account</h2> <p>Everyone knows you need a basic bank account, but if you want to boost your savings, it's helpful to have a savings account with a higher-than-average interest rate. These days, interest rates are extremely low, but you can still find returns of above 1% in money market accounts and online banks such as <a href="http://www.wisebread.com/capital-one-360-review">Capital One 360</a>. (See also: <a href="http://www.wisebread.com/5-best-online-checking-accounts?ref=seealso">Best Online Checking Accounts</a>)</p> <h2>7. Peer-to-Peer Lending Account</h2> <p>In addition to making it easier to invest in stocks, the Internet age has also made it possible for individuals to invest in other people's debt. There are thousands of people who have hopped onto sites such as <a href="https://www.lendingclub.com/">Lending Club</a> and <a href="http://prosper.evyy.net/c/27771/27132/994">Prosper</a> and report consistently solid returns. These sites generally work in the same way as banks, except that those in need of money are borrowing from individuals, who are seeking to make money on the interest. In most cases, people can invest based on the risk level of each borrower; those who aren't as creditworthy promise a potentially higher return &mdash; but more risk &mdash; to the investor. Popular personal finance blogger Mr. Money Moustache has reported more than an 11% annualized return since 2012, and many others report similar gains. (See also: <a href="http://www.wisebread.com/how-to-make-money-with-peer-to-peer-lending-service-prosper?ref=seealso">How to Make Money with Prosper</a>)</p> <p><em>How many of these accounts do you have?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/7-investment-accounts-all-30-somethings-should-have">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-only-8-rules-of-investing-you-need-to-know">The Only 8 Rules of Investing You Need to Know</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/best-online-sites-for-building-wealth">Best Online Sites for Building Wealth</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-to-invest-when-youre-in-debt">6 Ways to Invest When You&#039;re In Debt</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-investing-tips-you-wish-you-could-tell-your-younger-self">11 Investing Tips You Wish You Could Tell Your Younger Self</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/9-financial-moves-you-will-always-regret">9 Financial Moves You Will Always Regret</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Investment 30s 401k IRAs lending mutual funds retirement Roth savings accounts stocks Thu, 03 Mar 2016 10:30:34 +0000 Tim Lemke 1665768 at http://www.wisebread.com 5 Signs It's Time to Find a New Bank http://www.wisebread.com/5-signs-its-time-to-find-a-new-bank <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-signs-its-time-to-find-a-new-bank" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_frowning_smartphone_000047173988.jpg" alt="Woman learning signs it&#039;s time to find a new bank" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>No one likes switching to a new bank. After all, it takes effort to close one account and create another. But if your bank is nickel-and-diming you with fees, or if it's closing so many locations that banking is becoming inconvenient, it might be time to make the switch.</p> <p>&quot;To me, it's all about convenience when it comes to switching banks,&quot; said Wade Barnes, senior vice president and director of retail banking with Baltimore-based 1st Mariner Bank. &quot;Maybe just 10 years ago, we'd be talking about how many brick-and-mortar locations a bank has near you. Now, it's more about online banking and having connectivity to your bank 24 hours a day. But you want your banking relationship to be an easy, convenient one. If it's not, then you might consider making a move.&quot;</p> <p>Here are five signs that it's time to find a new bank.</p> <h2>1. Maintenance Fees</h2> <p>Some banks will charge your checking account a monthly fee if you don't make a certain number of payments or withdrawals per month. That fee might only be $10. But if you don't use your checking account often, you could pay $100 or more each year in fees.</p> <p>The better choice? Find a bank that doesn't charge such a fee. You want your free checking account to be <em>really</em> free. (See also: <a href="http://www.wisebread.com/banks-still-offering-free-checking-and-great-interest-rates">Banks Still Offering Free Checking</a>)</p> <h2>2. ATM Fees</h2> <p>Using an out-of-network ATM can add up, with the fees charged by these cash machines coming in at $2, $3, or more. You can avoid these fees by only withdrawing cash from ATMs affiliated with your bank. But if you do take out money from an out-of-network ATM, your bank should refund you this fee.</p> <p>Many banks reimburse customers for all the out-of-network ATM withdrawals they make, basically making all ATMs free. If your bank doesn't offer this service, it's time to make a move.</p> <h2>3. Paper Statement Fees</h2> <p>Most banks will provide your banking statements online. It's a great way to reduce paper. But maybe you're old-fashioned, and you want your bank to send you a paper statement each month. That's fine. Just make sure that your bank doesn't charge you for this service.</p> <p>Many banks, in an effort to persuade consumers to receive their statements online, are charging customers $1 or $2 every time they send them a paper statement. If you insist on a paper statement, there's no reason to pay this fee. Find a bank that doesn't charge you for this service.</p> <h2>4. Inconvenience</h2> <p>Maybe your bank was just bought up by another financial institution. That's usually fine, unless the new bank institutes changes that make being a customer there less convenient for you.</p> <p>Maybe your newly acquired bank is closing all the brick-and-mortar branches near you. That can be a hassle, even if you do most of your banking online. Maybe the bank is reconfiguring its ATMs, making it so you can only withdraw cash from them but can't make deposits into them. Or maybe your bank decides to reduce some of the services it offers online.</p> <p>Banking shouldn't be a hassle. If your bank is becoming one, you need to start looking for a replacement.</p> <h2>5. Bad Customer Service</h2> <p>What if you have questions about your mortgage loan, but your bank's home loan experts are never available to speak with you by phone? What if you call your bank and the phone just rings forever, with no one picking up? Maybe your bank doesn't hire enough tellers, and every time you need to see one, you have to wait in line 20 minutes?</p> <p>These are all examples of the bad customer service some banks provide. If you're not satisfied with the service your bank is providing you, you're ready to move on to a new financial institution.</p> <p><em>Have you switched banks recently? Tell us why in the comments section below.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/5-signs-its-time-to-find-a-new-bank">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">5 Sales Strategies Your Bank Uses to Make Money</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps">Switch to a Better Bank in 5 Easy Steps</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/think-twice-before-ditching-your-current-bank">Think Twice Before Ditching Your Current Bank</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-your-savings-account-may-be-costing-you">8 Ways Your Savings Account May Be Costing You</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/avoid-bank-fees">Avoid Bank Fees</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking atms customer service fees mobile banking savings accounts statements Wed, 02 Dec 2015 14:00:28 +0000 Dan Rafter 1617391 at http://www.wisebread.com Score $240 a Year Doing This One Thing http://www.wisebread.com/score-240-a-year-doing-this-one-thing <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/score-240-a-year-doing-this-one-thing" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_holding_cash_000023736258.jpg" alt="Learning how to score $240 a year doing one thing" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>Zzzzzz. Oh, excuse me. I just made $240 in my sleep. What did I do &mdash; and what do <em>you </em>have to do? Here's the deal and my official disclaimer:</p> <p>Deal: Open up an account with Santander Bank and they will pay you $20 a month ($240 a year).</p> <p>Disclaimer: I am NOT an employee or a paid shill for Santander Bank. Just a frugalista who likes a good deal.</p> <h2>Get Your $20 a Month Bonus</h2> <h3>1. Open an extra20 Account</h3> <p>Santander Bank has a lot of account options, so be sure that you choose the&nbsp;<a href="https://www.santanderbank.com/us/personal/banking/checking/extra20-checking">extra20 account</a> to be eligible for the $20 monthly bonus. You'll be opening a checking account with just the necessary $25 deposit, and you get the bonus by enrolling in their direct deposit and BillPay options each month.</p> <h3>2. Use Their Automatic Direct Deposit and BillPay Feature Each Month</h3> <p>This is the core of the program &mdash; the reason you'll be earning your $20 bonus each month. You will receive $10 when you receive employer direct deposits totaling $1500 or more a month, and an additional $10 a month when you pay two monthly bills using their BillPay &mdash; for a total of $20 in passive income every month, or $240 a year. What counts as a direct deposit? From their website:</p> <p>&quot;Direct deposits include deposits made by the customer's employer or a federal or state government agency or retirement benefits administrator and generally payments made by corporations or other organizations. Direct deposits do not include deposits to an account that are made by an individual using online banking or an Internet payment provider such as PayPal.&quot;</p> <h3>3. Link an extra20 Savings Account to Your Checking Account</h3> <p>This actually happens automatically when you open your extra20 checking account because this is where Santander will deposit your bonus each month. The good news is that the amount to open and maintain it is low. All you need to open an extra20 savings account is $10 dollars.</p> <h2>Is It a Good Deal?</h2> <p>Personally, I think it's an awesome deal because my husband and I can fulfill the requirements without stressing about it, but everyone needs to examine their own situation to decide. If you can do it, I say go for it because where else can you basically get what amounts to $240 in interest a year from a bank? Not only that, while there is only one account allowed per person, there can be more than one account per household. That could mean $480 a year. Or if one person doesn't meet the deposit requirement, move it the other way. Open a joint account and have direct deposits going in from two people to get the bonus. It'll take a little bit of effort to set everything up initially, but either way, after that it's easy money.</p> <h2>Can It Really Be That Simple?</h2> <p>One person's simple can be another person's complicated, so having gone through the process, what I can say is that I found it to be straightforward. As long as you understand the bonus requirements, can follow directions (and keep all of the paperwork), and follow through on the requirements, you shouldn't have any problems. Here are some things to keep in mind.</p> <h3>1. You Can Open the Account Online or at a Physical Branch</h3> <p>I've opened accounts online before, but because I wasn't familiar with this bank, I appreciated being able to walk into a local branch and talk with someone about this deal. They have physical locations in Connecticut, Delaware, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island.</p> <h3>2. Know Your Fees and Penalties</h3> <p>There is a $10 monthly fee which is waived as long as you direct deposit the minimum $1500 a month. There is no ATM fee as long as you use a Santander machine within the 50 states, D.C., and Puerto Rico. Non Santander ATM usage will cost you $3 per transaction. If you close your account within the first 90 days you will be charged a $25 early termination fee.</p> <h3>3. Know What Level of Customer Service You Want and Need</h3> <p>I've read some comments about poor <a href="http://www.wisebread.com/5-customer-service-battles-you-just-cant-win">customer service</a>, but no more or less than the other big banks. If you need or want a lot of attention, maybe this isn't the ideal bank for you. For me it's fine as it is not my primary financial institution and it's easy to move money between the two, but each person has to decide.</p> <h3>4. It's Not a Limited Time Offer</h3> <p>Though I'm just getting around to it, this offer has been available for a few years and is not one of those limited time deals. This made me feel more comfortable finally pulling the trigger and going for it.</p> <p>So there you have it, one easy way to make $240 a year in your sleep.</p> <p><strong>Disclosure</strong>: This is an honest review and recommendation. Neither I nor Wise Bread was paid for this placement &mdash; the link provided to Santander Bank is not an affiliate link.</p> <p><em>Have you signed up for an account? If so, are you glad you did? Let me know about your experience in the comments.</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/kim-owens">Kim Owens</a> of <a href="http://www.wisebread.com/score-240-a-year-doing-this-one-thing">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-ways-your-savings-account-may-be-costing-you">8 Ways Your Savings Account May Be Costing You</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-types-of-savings-accounts-which-is-right-for-you">The Types of Savings Accounts: Which Is Right For You?</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-things-to-consider-before-you-open-an-online-savings-account">4 Things to Consider Before You Open an Online Savings Account</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/build-savings-faster-with-a-multiple-account-strategy">Build Savings Faster With a Multiple Account Strategy</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">5 Sales Strategies Your Bank Uses to Make Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Extra Income bonuses direct deposit incentives interest santander bank savings accounts Wed, 14 Oct 2015 11:00:40 +0000 Kim Owens 1586507 at http://www.wisebread.com How Long Can You Really Live on Unemployment? http://www.wisebread.com/how-long-can-you-really-live-on-unemployment <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/how-long-can-you-really-live-on-unemployment" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_financial_stress_000031119668.jpg" alt="Woman learning how long she can live on unemployment" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>If you lost your job today, how long could you and your household survive on your unemployment income? How much of an emergency fund do you need to help you bridge the gap between your unemployment benefits and the full-time income that you'd no longer have? Most people don't know the answer to this question, says Kirk Cassidy, president of Senior Planning Advisors in Farmington Hills, Michigan.</p> <p>&quot;No matter if you have a full-time job or you are already in retirement, you need to set aside a certain amount of money each month for emergencies,&quot; Cassidy says. &quot;You might think that your income is stable. But it isn't. Your income is unpredictable. Something can happen, and you need to be ready for it.&quot;</p> <p>Sudden unemployment ranks as one of those unpredictable events. But losing your job is something you should plan for, even if you feel secure at your place of employment. You need to know how replacing your full-time income with unemployment benefits will impact your household budget. You need to know how long it would take for the money in your savings to run out, and how long it might take before making your mortgage and auto payments becomes a financial burden.</p> <h2>How Much Unemployment Will You Get?</h2> <p>Each state has its own formula for determining the amount of unemployment benefits available to individuals who are out of work or between jobs through no fault of their own. The maximum amount of money that you will receive each week depends on how much you were earning before you lost your job. But no matter where you live, don't expect to receive unemployment benefits that equal what you used to earn on your job.</p> <p>For example, in New Jersey as of 2015, you could receive a maximum of $646 each week in unemployment benefits. But if you live in Tennessee, that weekly maximum was only $275 as of 2015.</p> <p>In most states, you'll be able to receive unemployment benefits for a maximum of 26 weeks, or six months. Two states provide unemployment benefits for longer &mdash; Montana, at 28 weeks, and Maine, which provides benefits for 30 weeks.</p> <p>Eight states as of 2015 provide unemployment benefits for less than 26 weeks: Arkansas (25); Michigan, Missouri, and South Carolina (20); Kansas (16); Florida and Georgia (14); and North Carolina (12).</p> <p>The formula for how much you will receive each week varies according to state. As an example, in Massachusetts, the state looks at the last four quarters in which you worked. It adds your total wages from the two quarters in which you earned the highest amount of money and then divides that amount by 26, the number of weeks in the two combined quarters, to determine your average weekly wage. The state then divides that average weekly wage in half to determine your weekly benefit amount.</p> <p>Here's an example from the website of Massachusetts' state government: Say you earned a total of $18,840 during your two highest-paid quarters in the last four. Divide that figure by 26 and you get $724.61. Divide that in half to get $362.30. Round to the nearest dollar to leave you with $362 in unemployment benefits each week.</p> <p>That's just one example. But you can see that even with unemployment insurance, your weekly income is going to take a big hit. So how long can you survive on this reduced income?</p> <h2>Other Factors to Consider</h2> <p>To determine this, you must consider a host of factors. What are your current monthly expenses? What can you cut &mdash; the usual suspects such as cable TV, healthclub memberships, magazine subscriptions &mdash; to reduce this amount?</p> <p>You must also look at the income coming into your household each month. Add your unemployment insurance benefits to this while removing the money you formerly brought home each month from your full-time job. Maybe your spouse or partner works. This extra income can buy you more time to survive on unemployment benefits.</p> <p>You also need to consider your savings. Financial experts recommend that you build up enough money in an emergency fund &mdash; for most people this will be a standard savings account &mdash; to cover six months of your household's typical expenses. The problem is that most U.S. households have not done this.</p> <p>In May, the Chain Store Guide released a report saying that 40% of U.S. adults said that if they lost their incomes, they could only maintain their current lifestyles for one to three months. The report found that 21% of adults wouldn't be able to do this for even one month. (See also: <a href="http://www.wisebread.com/is-your-emergency-fund-big-enough-to-keep-you-afloat?ref=seealso">Is Your Emergency Fund Big Enough to Keep You Afloat?</a>)</p> <p>This means that plenty of U.S. households haven't been saving up for an emergency fund.</p> <p>Paul Metler, co-president of Senior Planning Advisors, says that this is a big mistake. A well-stocked emergency fund can be an important safety net for households trying to live partly on unemployment benefits.</p> <p>&quot;I don't know how many people have saved up enough in their emergency funds to provide them with a healthy cushion should they lose their jobs,&quot; Metler says. &quot;It does take planning. It does require you to live within your means and not overspend. There is no book that can magically tell you how to do it. You have to look at your own situation and budget accordingly.&quot;</p> <p><em>If you've ever been unemployed for a stretch, how'd you manage?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/dan-rafter">Dan Rafter</a> of <a href="http://www.wisebread.com/how-long-can-you-really-live-on-unemployment">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-4"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/10-money-moves-to-make-when-a-layoff-is-coming">10 Money Moves to Make When a Layoff Is Coming</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/8-personal-finance-resolutions-anyone-can-master">8 Personal Finance Resolutions Anyone Can Master</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/11-financial-moves-to-make-the-moment-you-get-fired">11 Financial Moves to Make the Moment You Get Fired</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-first-5-things-you-must-do-after-getting-laid-off">The First 5 Things You Must Do After Getting Laid Off</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/seven-tips-for-the-newly-unemployed">Seven Tips for the Newly Unemployed</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Personal Finance Career and Income emergency funds fired laid off out of work savings accounts unemployment Thu, 24 Sep 2015 13:00:19 +0000 Dan Rafter 1567512 at http://www.wisebread.com 8 Ways Your Savings Account May Be Costing You http://www.wisebread.com/8-ways-your-savings-account-may-be-costing-you <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/8-ways-your-savings-account-may-be-costing-you" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/woman_stressed_bills_000039190056.jpg" alt="Woman learning ways her savings account is costing her" title="" class="imagecache imagecache-250w" width="250" height="140" /></a> </div> </div> </div> <p>A savings account is an essential tool of money management. It'll enable you to save for emergencies and financial goals, and you might even get a little bit of interest income along the way. But not all savings accounts are the same. Some are extra-stingy on interest. Some have high fees. And some are just terrible all around.</p> <p>Here's a look at some ways your savings account may actually be making your financial situation worse, and how to find the best savings account for you.</p> <h2>1. Terrible Interest Rates</h2> <p>No bank has high rates these days. But some are offering practically no interest at all. Don't hesitate to shop around for higher rates; it's still possible to get rates higher than 1%, especially on the Internet. Online savings accounts such as Discover Bank&nbsp;and <a href="http://www.wisebread.com/capital-one-360-review?ref=internal">CapitalOne360</a> offer some of the best rates around, so look there first. (See also: <a href="http://www.wisebread.com/5-best-online-savings-accounts?ref=seealso">5 Best Online Savings Accounts</a>)</p> <h2>2. Fees</h2> <p>Many banks charge fees for a wide range of things, from low balances and overdrafts, to frequent deposits or withdrawals. You might even get dinged if you want a paper statement, or want to use an ATM from another bank. If your bank seems to be bleeding you dry with fees, find a different place to put your money. Many online savings accounts offer no fees or minimums.</p> <h2>3. You're Putting Too Much Into It</h2> <p>Let's be clear: There's nothing wrong with saving. We love saving! But if you are placing virtually every dollar of surplus cash in a normal savings account, you're hurting your future self financially. That's because it's also important to put as much money as you can retirement accounts, such as your 401(k) or Roth IRA. Putting some money in stocks and other investments will lead to higher returns and more cash in the long run, and these accounts have great tax advantages. Even taxable brokerage accounts are fine if you're investing in things that generate a higher return than your savings account.</p> <h2>4. A Lack of Sub-Accounts</h2> <p>A savings account is good, but when it's just a pile of money without a designated purpose, it's not as effective as it could be in helping you reach your goals. If you have the ability to open sub-accounts for specific purposes, such as a new car, home repairs, or vacation, you'll find that it's much easier to be disciplined. If you have an account labeled &quot;new car fund,&quot; for example, you'll be less tempted to dip into that account until absolutely necessary. Many online savings accounts offer sub-accounts free of charge, so take advantage of them if you can.</p> <h2>5. The Online Security Stinks</h2> <p>It seems like every day, we're hearing about a company suffering from a major data breach, potentially placing customers' personal and financial information at risk. Credit card users are often the most vulnerable, but be aware if your bank has also had issues protecting the information of account holders. Be sure you're comfortable with the security measures in place to prevent criminals from logging in to your accounts. Loyalty to a bank isn't going to mean much if you spend thousands of dollars getting a case of identity theft resolved.</p> <h2>6. Poor Access to Good CDs</h2> <p>CDs offer terms of varying lengths; the longer the term, the better the rate. But not all banks allow you to easily move cash from a savings account to CDs. And many that do offer them don't have a great selection. When researching a savings account, also research the CD offerings from the same bank.</p> <h2>7. A Dearth of Online and Mobile Services</h2> <p>In this day and age, you need a bank that allows you to save and manage your money in the same way you live your life. This means having access to online banking and mobile apps that let you check balances, pay bills, and move money around when necessary. It means mobile check cashing. It may even mean the ability to make payments to other people from your account, when necessary. If you are still relying on visits to physical banks and monthly paper statements, you're wasting time and money.</p> <h2>8. It's Not Even Your Account</h2> <p>Imagine having an account in which a bank takes your money and places it in its own savings account. Imagine having to ask the bank to transfer money back to you when you need it. Seems absurd, right? But that's exactly what happens if you sign on with the online banking service known as Digit. The service is designed to move money from your checking account to savings when money is available, theoretically encouraging people to save. But the customer doesn't actually own the savings account, and worst of all, Digit offers absolutely no interest to customers, but it makes money by generating interest on your savings. Get it? Me neither. Stay away from banks and services like this one.</p> <p><em>How is your savings account holding you back?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tim-lemke">Tim Lemke</a> of <a href="http://www.wisebread.com/8-ways-your-savings-account-may-be-costing-you">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-1"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-types-of-savings-accounts-which-is-right-for-you">The Types of Savings Accounts: Which Is Right For You?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-things-to-consider-before-you-open-an-online-savings-account">4 Things to Consider Before You Open an Online Savings Account</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-to-love-your-bank">6 Reasons to Love Your Bank</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/score-240-a-year-doing-this-one-thing">Score $240 a Year Doing This One Thing</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-signs-its-time-to-find-a-new-bank">5 Signs It&#039;s Time to Find a New Bank</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking CDs fees interest online banking savings accounts Mon, 17 Aug 2015 09:00:17 +0000 Tim Lemke 1523215 at http://www.wisebread.com Online Savings Account Face-Off: Ally Bank vs Capital One 360 http://www.wisebread.com/online-savings-account-face-off-ally-bank-vs-capital-one-360 <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/online-savings-account-face-off-ally-bank-vs-capital-one-360" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/piggy-bank-133898315.jpg" alt="piggy banks" title="piggy banks" class="imagecache imagecache-250w" width="250" height="206" /></a> </div> </div> </div> <p>Most personal finance experts &mdash; including Dave Ramsey, Ramit Sethi, and Suze Orman &mdash; talk about the importance of saving money. Whether it's for an emergency fund in case you lose your job, or you're saving for a specific purchase so that you don't get into debt &mdash; a savings account will definitely keep you out of trouble.</p> <p>But with the myriad banks that exist today, it can be a daunting task to find one that has a savings account that meets your needs.</p> <p>Luckily, you don't have to compare the features offered from every single bank. Two of the most well-known banks today are <a href="http://www.wisebread.com/redir/10839262" target="_blank" rel="nofollow" onClick="_gaq.push(['_trackEvent', 'afclick', 'contenttext', 'bank_ally']);">Ally Bank</a> and <a href="http://www.wisebread.com/redir/10839261" target="_blank" rel="nofollow" onClick="_gaq.push(['_trackEvent', 'afclick', 'contenttext', 'bank_capone360']);">Capital One 360</a>. So I'm going to weigh the pros and cons of each of their savings accounts.</p> <h2>Interest Rate</h2> <p>Ally Bank's rate is currently 0.86 percent. Capital One 360's rate is currently <a href="http://www.kqzyfj.com/click-2822544-11665596" target="_top"><script src="https://home.capitalone360.com/js/accounttype.js"></script> <script>document.write(type_3000_apy);</script></a> percent<img src="http://www.lduhtrp.net/image-2822544-11665596" width="1" height="1" border="0"/>. Since both of these rates are so low right now, it doesn't make a huge difference in making your money grow.</p> <p><strong>Winner:</strong> Ally Bank</p> <h2>Compounding Frequency</h2> <p>This refers to how often your money grows and earns interest. The interest you earn is reinvested in your account, which gives you even more interest in the future. In other words, you earn interest on your interest.</p> <p>So the more often your interest compounds, the more money you'll make.</p> <p>With Ally Bank, your interest is compounded every day. With Capital One 360, your interest is compounded on a monthly basis.</p> <p><strong>Winner:</strong> Ally Bank</p> <h2>Bonus Sign-up Offers</h2> <p>Sometimes, banks will offer you a bonus to entice you to open up for an account. Capital One 360 often offers sign up bonuses during <a href="http://www.wisebread.com/capital-one-360-black-friday-sale-get-100-when-you-open-an-account">special sales</a>. (Right now there aren't any promotions.) Ally Bank doesn't offer a bonus at this time, either.</p> <p><strong>Winner:</strong> Capital One 360 (if you can catch one of their promotions)</p> <h2>Sub-Savings Accounts</h2> <p>Saving for the specific things you want &mdash; such as a vacation to Hawaii, Christmas gifts, or a new outfit &mdash; will help you stay focused on your goals. Having sub-savings accounts at the same bank lets you do this easily.</p> <p>Both banks allow you to open sub-savings accounts, and even name them after the things you're saving for.</p> <p><strong>Winner:</strong> Tie</p> <h2>Fees</h2> <p>Nowadays, there's no need to open an account with a bank that charges fees just to hold and use your money. Luckily, both banks come with zero monthly maintenance fees, and no minimum balance requirements.</p> <p><strong>Winner:</strong> Tie</p> <h2>Depositing Checks</h2> <p>Since both bank accounts are online accounts, do you wonder what you'd do if you received a paper check? How would you deposit it?</p> <p>Well, the good news is that both banks allow you to conveniently deposit a check from anywhere, using either a smartphone app, or by scanning it through your computer.</p> <p>What if you prefer mailing your checks instead? Both banks will also let you mail your checks for deposit. But Ally Bank provides postage-paid envelopes, so that you can mail them for free.</p> <p><strong>Winner:</strong> Ally Bank</p> <h2>Accessing Your Money After You're Gone</h2> <p>Lastly, if you're going to open an account, you'll want to be sure that your loved ones are able to get to your money easily if anything happens to you.</p> <p>Payable on Death accounts let you do this without any hassle. Ally Bank offers this benefit with their accounts, but Capital One 360 doesn't.</p> <p><strong>Winner:</strong> Ally Bank</p> <h2>My Thoughts and Recommendation</h2> <p>The thing I like best about <a href="http://www.wisebread.com/redir/10839261" target="_blank" rel="nofollow" onClick="_gaq.push(['_trackEvent', 'afclick', 'contenttext', 'bank_capone360']);">Capital One 360's account</a> is the sign-up bonus. And the thing I really love about <a href="http://www.wisebread.com/redir/10839262" target="_blank" rel="nofollow" onClick="_gaq.push(['_trackEvent', 'afclick', 'contenttext', 'bank_ally']);">Ally Bank's account</a> is the Payable on Death feature.</p> <p>But honestly? You can't go wrong with either.</p> <p><em>Which online savings account do you like best?</em></p> <p><strong><a href="http://www.wisebread.com/redir/10839261" target="_blank" rel="nofollow" onClick="_gaq.push(['_trackEvent', 'afclick', 'applytext', 'bank_capone360']);">Click here to apply at Capital One 360</a></strong></p><br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/darren-wu">Darren Wu</a> of <a href="http://www.wisebread.com/online-savings-account-face-off-ally-bank-vs-capital-one-360">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-2"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-types-of-savings-accounts-which-is-right-for-you">The Types of Savings Accounts: Which Is Right For You?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-things-to-consider-before-you-open-an-online-savings-account">4 Things to Consider Before You Open an Online Savings Account</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/5-sales-strategies-your-bank-uses-to-make-money">5 Sales Strategies Your Bank Uses to Make Money</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/discover-bank-review-you-know-the-card-but-what-about-the-bank">Discover Bank Review: You Know the Card, but What About the Bank?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-ways-to-get-paid-for-saving-money">6 Ways to Get Paid for Saving Money</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking ally bank bank reviews capital one 360 savings accounts Wed, 13 Nov 2013 09:48:04 +0000 Darren Wu 1083926 at http://www.wisebread.com 5 Things Your Teen Needs (or Doesn’t Need) in a Bank Account http://www.wisebread.com/5-things-your-teen-needs-or-doesn-t-need-in-a-bank-account <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/5-things-your-teen-needs-or-doesn-t-need-in-a-bank-account" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/teen-5247562-small.jpg" alt="teen" title="teen" class="imagecache imagecache-250w" width="250" height="167" /></a> </div> </div> </div> <p>Teens taught to save from an early age may gain an advantage over kids with no parental direction concerning finances. How you handle your money matters will have a <a href="http://www.kiplinger.com/article/saving/T065-C000-S001-teach-kids-the-value-of-money.html">strong impact on your child's view of money</a> and the values they hold into adulthood. While many people across the county are still struggling to put away cash from each paycheck they receive, teens that learn healthy financial habits will likely struggle less with their money management. (See also: <a href="http://www.wisebread.com/the-first-payday-helping-your-teen-understand-money">Helping Your Teen Understand Money</a>)</p> <p>In addition to prioritizing savings, teens also should start learning the basic fundamentals of personal money management such as being responsible for balancing their checkbook and paying any financial responsibilities on time. As a teen's financial responsibilities increase, they will need to establish a savings account and a checking account. (See also: <a href="http://www.wisebread.com/5-best-prepaid-debit-cards">Top 5 Prepaid Debit Cards</a>)</p> <p>Here are 5 things every teen needs in a bank account.</p> <h2>1. Money, Money, and More Money</h2> <p>Opening a bank account with or for your teen isn't enough to teach a savings lesson. Parents would be wise to sit down with their child and talk about the benefits of savings and the best methods for hanging on to their cash.</p> <p>Ideally, establishing a <em>must-follow</em> rule of savings, such as 10% of all money they earn or receive, will help a teen get into the habit of heading to the bank first rather than the mall. The savings account should never be touched for any purpose so it can be allowed to grow and earn interest for long-term financial stability. Checking accounts will need to have sufficient amounts of cash for checks written. (See also: <a href="http://www.wisebread.com/10-tips-from-a-financially-savvy-teen">Advice From a Financially Savvy Teen</a>)</p> <h2>2. More Benefits Than Fees</h2> <p>Banks have been <a href="http://www.consumersdigest.com/special-reports/license-to-steal">capitalizing on the many fees</a> they are creating to keep making huge profits. When it comes to a new account for teens, it is best to shop around at different banks rather than just head to your preferred branch. Your teen should have a bank account that doesn&rsquo;t charge a ton of excessive fees for administration or transactions. Be sure to review the associated fees with your teenager.</p> <h2>3. Avoid Flashy Incentives</h2> <p>There is still a lot of competition in the banking industry, so it is important for teens to understand what makes an account suitable for them. Banks often offer incentives that seem great on the surface but could leave the customer dissatisfied with the other account terms. Teach your teen to look past the <a href="http://www.cnbc.com/id/100774142">free stuff and focus on the bank's conditions</a>, fees, and limitations. They should find a bank that offers low-cost or free accounts that do not limit transactions including at the ATM and through checking accounts.Take time to read the fine print with your teenager and if you don't understand the terms, visit with the bank's manager for an explanation.</p> <h2>4. Accessible Banking</h2> <p>There is a good mix of brick and mortar banks and online banks offering great deals on bank accounts. However, some online banks or smaller institutions are not as accessible as a teen needs them to be. If they plan to use an ATM card for withdrawals or need to make cash deposits, they will need to be able to access a bank in person. Consider the accessibility of both the bank and its ATM locations when helping teens make a decision. If you anticipate in-person visits to the bank to cash or deposit checks, an online bank may not make as much sense as opting for a bank with a local branch.</p> <h2>5. Seek Out Banks With Educational Resources</h2> <p>Since your teen is just entering the world of personal finance, finding a bank that also offers free resources for financial education is a wise move. Many of the major banks offer online tools and guides for learning the basics of money. As parents can find it difficult to get lessons across to their kids, online tutorials can help close the gap in learning. Phone apps and other technologies offered by banks can be a very effective teaching tool for today's teens. (See also: <a href="http://www.wisebread.com/the-best-money-tools-and-toys-for-every-age-group">Money Tools and Toys for Every Age Group</a>)</p> <ul> <li>Wells Fargo offers <a href="https://www.wellsfargo.com/checking/teen/">Teen Checking (SM)</a> that include parents in alert messages and account management.<br /> &nbsp;</li> <li>Bank of America offers a lot of free information on their <a href="https://www.bankofamerica.com/student-banking/solutions-for-students.go">Student Bank Accounts and Solutions</a> page.<br /> &nbsp;</li> <li>Chase also offers a <a href="https://www.chase.com/checking/student-checking">High School Checking Accounts</a> program for teens to help them manage their money.</li> </ul> <p><em>Have you set up a savings or checking account for your teen (or younger child)? Has it been educational?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/tisha-tolar">Tisha Tolar</a> of <a href="http://www.wisebread.com/5-things-your-teen-needs-or-doesn-t-need-in-a-bank-account">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-5"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/6-reasons-to-love-your-bank">6 Reasons to Love Your Bank</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/switch-to-a-better-bank-in-5-easy-steps">Switch to a Better Bank in 5 Easy Steps</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/think-twice-before-ditching-your-current-bank">Think Twice Before Ditching Your Current Bank</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/capital-one-360-review">Capital One 360: A Competitive Banking Option</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-benefits-and-drawbacks-of-credit-unions">The Benefits and Drawbacks of Credit Unions</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking banks checking accounts savings accounts teen saving Wed, 18 Sep 2013 09:36:07 +0000 Tisha Tolar 986755 at http://www.wisebread.com Discover Bank Review: You Know the Card, but What About the Bank? http://www.wisebread.com/discover-bank-review-you-know-the-card-but-what-about-the-bank <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/discover-bank-review-you-know-the-card-but-what-about-the-bank" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/piggy-bank-4063970-small.jpg" alt="piggy bank" title="piggy bank" class="imagecache imagecache-250w" width="250" height="167" /></a> </div> </div> </div> <p>When many of us think of Discover, we think of credit cards (including the new <a href="http://www.wisebread.com/the-discover-it-card-attractive-cash-back-awards-for-shoppers">Discover it card</a>). However, Discover offers standard banking services as well as credit cards. In fact, <a href="http://www.dpbolvw.net/click-2822544-11035571" rel="nofollow" target="_blank">Discover Bank</a> features competitive yields on savings products and some loan products.</p> <p>Discover markets is its savings account as &quot;over 5X the National Savings Average,&quot; although the yields aren't the highest available. But they are high enough to justify considering an account with Discover Bank.</p> <h2>A Little History Behind Discover Bank</h2> <p>The Discover card was launched in 1986, but the bank is a more recent invention. The company likes to push that fact that the Brand Keys Customer Loyalty Engagement Index has ranked Discover (the card) #1 in customer loyalty for 17 years in a row.</p> <p>Discover Bank cropped up during the boom in online banking that occurred a few years ago. The online aspect provides Discover with the ability to offer savings products to consumers, in addition to credit cards.</p> <p>For the first quarter of 2013, Bankrate gave Discover Bank its 5-Star Safe &amp; Sound rating. Even though Discover Bank is FDIC-insured, many consumers still like to see that their bank has good health.</p> <h2>Features and Benefits of Discover Bank</h2> <p>As you might expect, Discover offers credit cards, including the Discover it card, a version of the Discover it for students, and business credit card options. All of these credit cards are considered reasonably competitive and offer access to Discover's cash back program. In addition to the well-known credit card offerings, Discover Bank offers a range of savings products, as well as three loan products.</p> <p><strong>Online Savings</strong></p> <p>As of June 2015, Discover Bank offers <a href="http://www.dpbolvw.net/click-2822544-11035571" rel="nofollow" target="_blank">0.95% APY on its online savings account</a>. This is one of the highest yields you'll find out there. There is no minimum balance requirement and no monthly fee.</p> <p><strong>Money Market Account</strong></p> <p>Discover Bank also offers a <a href="http://www.anrdoezrs.net/click-2822544-10739533" target="_blank" rel="nofollow">money market account</a>. As of this writing, the APY on a money market account is 0.80% on deposits of between $1,000 and $99,999. Balances of over $100,000 pay a yield of 0.85%. You need $2,500 to open a money market account, and there is a $10 fee for months in which your average daily balance dips below $2,500. You can access funds via check, debit card, or online. However, this is still considered a savings account, so you are limited to six withdrawals a month.</p> <p><strong>CDs</strong></p> <p>Discover Bank offers competitive CD rates, with a <a href="http://www.anrdoezrs.net/click-2822544-10753918" rel="nofollow" target="_blank">one-year CD at 1.25%</a> as of this writing. If you are willing to lock up the money for a longer period of time, the rates are higher. You need a minimum of $2,500 to open a CD account. There are also renewal options that make it easy <a href="http://www.wisebread.com/the-basics-of-cd-laddering">to build CD ladders</a> and renew your CD when the term is up.</p> <p><strong>Retirement</strong></p> <p>You can include your retirement planning with Discover Bank. Discover Bank can help you rollover your 401(k) to an IRA, or to transfer your IRA. You can also include CDs in an IRA, and Discover Bank can help you do that, too. Although Discover Bank touts its IRA CD, the reality is that the virtually the same APYs are offered, and you don't get any truly special perks; you just hold the CD account in an IRA.</p> <p><strong>Loan Products</strong></p> <p>You can choose from three different types of loans with Discover Bank:</p> <ol> <li>Mortgages</li> <li>Student Loans</li> <li>Personal Loans</li> </ol> <p>Discover Bank touts its personal loan as one that can be used to consolidate debt as well as to finance larger purchases. There are also a variety of student loans to choose from, including those intended for graduate students as well as undergraduate students. It's even possible to get a bar exam loan designed to help law students pay for prep and the cost of the exam.</p> <p><strong>Mobile Banking</strong></p> <p>Discover Bank offers a mobile banking app that makes it easy to access your account from anywhere. You can manage your account from your mobile app, including taking a look at how much interest each account has earned. The mobile banking app from Discover also includes remote deposit. This is a convenient feature that many banks are adopting. It's also possible for you to schedule your bill payments using this app. There is a handy ATM locator that can help you access your money in the &quot;real world&quot; &mdash; no matter where you are.</p> <p>It's also worth noting that Discover is compatible with Google Wallet, so you can add your credit card information to your digital wallet without too much trouble.</p> <h2>Educational Resources and Customer Service</h2> <p>You will find a number of educational resources on the Discover Bank website. There is a retirement planning center, as well as a number of helpful articles on financial management. You can also find an extensive help center that features FAQs related to various products and services. You can find contact information as well, including online contact, phone contact, and even snail mail contact information. Discover claims that it offers 24/7 assistance, so you can call anytime.</p> <h2>ShopDiscover</h2> <p>Discover offers its own shopping portal, which you can access from the Discover Bank website. If you have a credit card, you can get &quot;super-charged&quot; cash back at more than 200 retailers. For frequent shoppers, this can be a way to build up cash back even faster.</p> <h2>Bottom Line</h2> <p>Discover Bank isn't particularly outstanding when it comes to online banking, but it is a solid choice. On savings products, you receive yields that are considered top tier. You can also get access to a different loan products that provide you with a range of options.</p> <p>Hard-core rate chasers will probably find Discover Bank a bit tame. However, if you are looking for a reliable online bank with easy-to-use features and a mobile app, Discover Bank is a reasonably good choice.</p> <p><strong><a href="http://www.dpbolvw.net/click-2822544-11035571" target="_blank" rel="nofollow">Click here to apply now.</a></strong></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/miranda-marquit">Miranda Marquit</a> of <a href="http://www.wisebread.com/discover-bank-review-you-know-the-card-but-what-about-the-bank">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-6"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/capital-one-360-review">Capital One 360: A Competitive Banking Option</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/12-places-to-keep-your-money-safe-and-growing">12 Places to Keep Your Money Safe — And Growing</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/a-new-bank-on-the-block-fee-free-banking-with-simple">A New Bank On The Block: Fee Free Banking with Simple</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/zen-and-the-art-of-hiding-money">Zen and the Art of Hiding Money</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/are-you-paying-these-6-unfair-banking-fees">Are You Paying These 6 Unfair Banking Fees?</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking banking CD credit cards IRA online bank savings accounts Fri, 02 Aug 2013 10:36:38 +0000 Miranda Marquit 980983 at http://www.wisebread.com Save More by Avoiding Multiple Bank Accounts http://www.wisebread.com/save-more-by-avoiding-multiple-bank-accounts <div class="field field-type-filefield field-field-blog-image"> <div class="field-items"> <div class="field-item odd"> <a href="/save-more-by-avoiding-multiple-bank-accounts" class="imagecache imagecache-250w imagecache-linked imagecache-250w_linked"><img src="http://wisebread.killeracesmedia.netdna-cdn.com/files/fruganomics/imagecache/250w/blog-images/piggy-bank-4562214-small.jpg" alt="piggy bank" title="piggy bank" class="imagecache imagecache-250w" width="250" height="167" /></a> </div> </div> </div> <p>Want to save more? Keep it simple.</p> <p>Conventional wisdom holds that people should spread savings across different accounts, and the typical American has multiple checking and savings and other types of financial accounts. However, they're more likely to save more with just one savings account, according to a new study by a University of Kansas researcher. (See also: <a href="http://www.wisebread.com/zen-and-the-art-of-hiding-money" target="_blank">Zen and the Art of Hiding Money</a>)</p> <p>People save more if they have just one account compared to multiple checking and savings accounts, according to Kansas University assistant professor Promothesh Chatterjee.</p> <p>&quot;Nowadays, the average American has multiple liquid accounts, typically a combination of checking and savings accounts,&quot; he said in a <a href="http://www.news.ku.edu/2013/04/17/trying-save-more-consolidate-your-bank-accounts-researcher-says" target="_blank">press release</a>. &quot;But our research finds this is the wrong strategy to encourage saving. We find that individuals are more likely to save if they have only one primary account, rather than many accounts.&quot;</p> <h2>Banking Implications</h2> <p>His research has implications for accepted banking practices and national policies. Banks frequently offer several accounts to new clients, but the findings argue against that practice.</p> <p>Americans save next to nothing &mdash; the current national savings rate is estimated at 5%. And the inability to save cuts across income and educational levels.</p> <p>&quot;Given that context, this type of research is important to lots of people,&quot; Chatterjee said.</p> <p>Why does having several accounts encourage people to save less?</p> <blockquote><p>Utilizing work on motivated reasoning and fuzzy-trace theory, we suggest that multiple accounts engender fuzzy gist representations, making it easier for people to generate justifications to support their desired spending decisions. However, a single account reduces the latitude for distortion and hinders generation of justifications to support desirable spending decisions.</p> </blockquote> <h2>Fuzzy Savings</h2> <p>In other words, people with <a href="http://www.wisebread.com/financial-iq-test-how-healthy-are-your-bank-accounts" target="_blank">more accounts lack a clear idea</a> of how much they have saved and use that muddled picture to rationalize their spending decisions. We feel good about ourselves over the long-term when we save, but we feel good right away when we spend, which prompts us to find justifications to spend.</p> <p>Simply put, if you have different savings accounts, it's easy to convince yourself that you have a ton of savings. If you have it all in one place, you can plainly see what you have &mdash; or don't have.</p> <p>Those who are opposed to consolidating accounts, according to the research, can at least try using <a href="http://www.wisebread.com/beyond-budgeting-pocketsmith-helps-you-forecast" target="_blank">software programs that add up different accounts</a>, allowing users to see the total in one place.</p> <p>His research used four separate studies with a total of 566 participants who had the opportunity to earn, spend, and save money. The results were published in the May 2013 issue of the journal &quot;Organizational Behavior and Human Decision Processes.&quot;</p> <p>The students participating in the study earned money for doing tasks on a computer, and then had chances to buy items, such as university T-shirts, notebooks, and a computer mouse, or add money to their savings, according to a <a href="http://bucks.blogs.nytimes.com/2013/04/18/fewer-bank-accounts-may-result-in-more-savings/" target="_blank">New York Times story</a> on the research. Those who kept earnings in a single account saved more than those with multiple accounts. The issue was not their mathematical abilities, but rather their motivation, Chatterjee said.</p> <h2>Targeted Accounts for Saving?</h2> <p>Others disagree and argue that using <a href="http://www.wisebread.com/a-comprehensive-guide-to-the-envelope-system" target="_blank">targeted savings accounts</a> is the best way to accumulate savings.</p> <p>Different savings accounts &mdash; for example for emergencies, a new car, and a vacation &mdash; offer a motivational tool for saving for specific goals, writes one proponent of <a href="http://business.time.com/2011/08/23/use-targeted-saving-to-achieve-your-goals" target="_blank">targeted savings accounts</a>, J.D. Roth, founder of website Get Rich Slowly and author of &quot;Your Money: The Missing Manual.&quot;</p> <p>When savings are combined, it's easy to lose track of how much you've saved for each goal and use money for one goal to pay for another use, he says, adding that online savings accounts offer higher yields and let customers split their funds into subaccounts and even name them.</p> <p><em>Do you use multiple accounts to manage your savings or just one? What works best for you in terms of reaching your savings goals?</em></p> <br /><div id="custom_wisebread_footer"><div id="rss_tagline">This article is from <a href="http://www.wisebread.com/michael-kling">Michael Kling</a> of <a href="http://www.wisebread.com/save-more-by-avoiding-multiple-bank-accounts">Wise Bread</a>, an award-winning personal finance and <a href="http://www.wisebread.com/credit-cards">credit card comparison</a> website. Read more great articles from Wise Bread:</div><div class="view view-similarterms view-id-similarterms view-display-id-block_2 view-dom-id-3"> <div class="view-content"> <div class="item-list"> <ul> <li class="views-row views-row-1 views-row-odd views-row-first"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/financial-iq-test-how-healthy-are-your-bank-accounts">Financial IQ Test: How Healthy Are Your Bank Accounts?</a></span> </div> </li> <li class="views-row views-row-2 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-quirky-ways-to-spend-less-and-kick-start-saving">4 Quirky Ways to Spend Less and Kick-Start Saving</a></span> </div> </li> <li class="views-row views-row-3 views-row-odd"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/how-to-help-your-kid-build-their-first-budget">How to Help Your Kid Build Their First Budget</a></span> </div> </li> <li class="views-row views-row-4 views-row-even"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/the-types-of-savings-accounts-which-is-right-for-you">The Types of Savings Accounts: Which Is Right For You?</a></span> </div> </li> <li class="views-row views-row-5 views-row-odd views-row-last"> <div class="views-field-title"> <span class="field-content"><a href="http://www.wisebread.com/4-things-to-consider-before-you-open-an-online-savings-account">4 Things to Consider Before You Open an Online Savings Account</a></span> </div> </li> </ul> </div> </div> </div> </div><br/></br> Banking Budgeting Financial News bank accounts saving strategies savings accounts Mon, 17 Jun 2013 09:48:33 +0000 Michael Kling 977910 at http://www.wisebread.com