online banking

6 Ways Millennials Have Changed Money (So Far)

Mikey Rox — Fri, 02 Dec 2016 11:00:10 +0000

Every generation of Americans have changed the face of this nation in its own way.

In the 1990s, our country was very different from it was in the '70s, which, itself, was a far cry from the 1950s. Today, Millennials are overhauling our political, social, and financial landscape so much that it's barely recognizable from just 10 years ago, and that's not necessarily a bad thing (depending on where you stand on certain issues.)

As far as money is concerned at least, the "Me Generation" is making it easier to earn money and more efficient to spend it, while reinventing entire aspects of personal finance, like investing. They're living up to the old idiom of putting their money where their mouth is — and here's how.

1. Cash Back Is Growing While Coupons Fall Behind

I used to be a major coupon clipper, once saving more than $80 on my grocery bill on double-coupon day at my local supermarket. My couponing prowess (and interest) has consistently waned over the years. Instead, substituting my savings with cash back deals through my bank and grocery apps, like Ibotta, Checkout 51, and SavingStar, has skyrocketed.

I'm not alone. Millennials are hopping aboard the rebate train in droves.

If you're not familiar with the concept of the cash back service, it's basically the opposite of the upfront savings that coupons provide. Instead, these rebate providers pay out the consumer on the back-end, after the shopping trip is complete.

SavingStar, for instance, offers deals from popular grocery brands like Cheerios, Yoplait, Dove, and more. For some chains, it'll link deals directly to shoppers' loyalty cards. For other stores, shoppers can submit a picture of their receipt through the app or website. In either case, shoppers earn cash back into their SavingStar accounts, which can be paid out to a bank or PayPal account, or as gift cards from Starbucks, iTunes, and AMC Theatres.

Of course, cash-back-adopting Millennials would maximize their savings by using both coupons and the rebate services, but, ya know — kids these days.

2. Investing Is Being Completely Reinvented

As an investor myself, I've avoided putting money in stocks (I just don't trust that market), preferring to invest in real estate or other entrepreneurs' business ideas. Michael Banks, founder of investing and personal finance blog Fortunate Investor, says I'm in good company. Millennials are turning the investment industry on its head by rethinking long-held strategies, perhaps out of necessity.

"As the generation with the largest student debt and toughest-looking future, traditional investing is out of the picture," Banks says. "Instead, more Millennials are relying on micro-investing — investing small amounts of money frequently — to accomplish their savings goals."

Micro-investing allows would-be investors with little starting capital to bypass the roadblocks that usually keep them out of the game — minimum investment levels, trading costs, market research, and really just not having a ton of money.

"Investing has always had a high buy-in value, which you would think eliminates the generation that is doing everything they can to save whatever they have — but a handful of apps are changing that, and opening the doors for Millennials to try their hands at creating their own investment portfolios," adds Banks.

3. Hardly Anyone Under Age 35 Walks Into a Bank Anymore

Your grandma probably still goes to the brick-and-mortar bank. Heck, maybe even your dad likes to roll in from time to time for a withdrawal and a lollipop, but you'll be hard-pressed to find a Millennial in a bank, unless it's to grab cash from an ATM for after-work drinks (or working there). Rather, they prefer the easy-breezy mobile banking that accommodates their fast-paced lifestyle.

According to a recent study, 75% of Millennials are at least somewhat reliant on a mobile banking app to interact with their bank for tasks such as depositing or sending checks, checking their balance, and paying bills.

"This seems like somewhat of a no-brainer, but the power of convenience and control often goes overlooked," writes creative media agency Brokaw. "Within mobile interactions, there are multiple avenues in which banks can increase their influence and exposure, including text messages and push notifications. Take FirstMerit Bank's text banking and alerts, for example: It allows their customers to request activity alerts for different aspects of their account right from their phone."

Legit, though — mobile depositing is one of the best inventions of the 21st century. I will stand by that until my retinas are replaced with laser scanners that do all my banking for me. Which is totally gonna happen, ya know.

4. The Monetization of Ideas

Think you need to push product to turn a profit? Old school. Millennials' intellectual property is their bread and butter — and they're fiercely protective of it.

"The increasing monetization of ideas is one trend Millennials are driving, which doesn't look to be slowing down anytime soon." explains Monica Mizzi, editor of LegalTemplates.net, a website that equips people with the tools to be their own legal advocates. "The boom in startup culture can be largely attributed to the throng of Millennials who are taking the plunge to make their 'one in a million' idea come to life."

Successive studies highlight that a growing number of Millennials are bucking the trend of traditional employment to try their hand at entrepreneurship. With this has come an increasing interest in using nondisclosure agreements to protect their business ideas.

"While using an NDA to protect business ideas is not a novel concept, growing market competition has led Millennials to become more proactive in legally protecting their ideas — even before they have come to fruition," Mizzi continues. "It's not uncommon to hear reports of big companies pinching ideas or being 'inspired' by their competitors' ideas, so Millennials wanting to become entrepreneurs are more conscious of ensuring their ideas are never compromised."

5. Instant Financial Transactions Are Becoming More Common

When do Millennials want their money? Now!

Domestic instant transaction service has become commonplace for this demographic — I get paid instantly via Venmo when I deposit money from my Lyft earnings (like a boss!) — and its expansion to international exchanges is inevitable. The problem is, sending money internationally is a bit trickier with more complex compliance and regulations needs. But at least one service right now, Remitly, has built compliance and regulation rules into their app making it possible to meet Millennials' need for speed and convenience.

6. Digital Currency Has Real Value

Digital, or cryptocurrency as it's formally known, went mainstream with the runaway success of Bitcoin — a digital asset designed to work as a medium of exchange using cryptography to secure the transactions and to control the creation of additional units of the currency (as explained by Wikipedia). In layman's terms, it's cyber money that you can spend wherever cyber money is accepted, which is a real thing in this day and age.

But Bitcoin isn't the be-all or end-all of digital currency. Imitators have popped up, relevant in their own rights. Using a digital currency called Steem, for example, users of brand-new social network Steemit (which looks a lot like Reddit) get paid for posting and curating content. And it's become wildly popular. After launching this past May, Steemit (which has a 26-year-old CEO) already has nearly 120,000 registered users and posts nearly 1,000,000 unique visitors per month. They've also paid out more than $4,000,000 in rewards to users to date.

While digital currency is still in its infancy despite these successes, you can expect to see more and more of it infiltrating sectors of industry. Will it ever replace cash or credit? Probably not. But it's certainly an interesting concept as a new form of legitimate currency as we've move forward with Millennials at the helm.

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This article is from Mikey Rox of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

The Pros and Cons of Autopay

Dr Penny Pincher — Wed, 25 Nov 2015 14:00:37 +0000

Autopay is a powerful tool that enables automatic withdrawals from your bank account to pay bills — you don’t even need to look at them anymore! But autopay can save or cost you money, depending on how you use it. Consider these pros and cons of autopay.

Pros of Autopay

Wise Bread writers often advise readers to take advantage of autopay — and for plenty of good reasons.

1. No Late Payments

When you turn on autopay for a bill, you will never have a late payment on that bill again — unless your bank account has insufficient funds, of course. That’s huge, because even one late payment can result in a drop of your credit score, making it more difficult and expensive to borrow money. Autopay helps protect your credit rating by removing the risk of late payments.

2. No Late Fees

If your payment arrives even a day late, this can cost you $25 or more in late payment fees. Additionally, your interest rate can be increased, which can cost hundreds of dollars per year. With autopay, you will never need to pay late fees, since your payment will never be late.

3. No Postage Expense

You will never need to put a stamp on an envelope to mail in a payment. Your payment will come out of your account electronically, with no need for postage. Why pay 49 cents for a stamp when you can sign up for autopay for free or use electronic bill payment?

4. No Checks to Write

Since autopay uses electronic funds transfer, you will not need to write checks, either. I used to write about 20 checks every month to pay bills. Now, with autopay and electronic bill payment, I almost never write checks anymore.

5. Save Time

Saving time is probably the biggest advantage of autopay. You don’t need to find time to sit down and pay your bills — the bills will get paid without any time or effort required. I haven’t manually paid my electric bill for over four years.

Cons of Autopay

Despite the convenience, autopay is not without its risks.

6. Lose Touch With Your Bills

If you have bills on autopay, it is easier to lose touch with how much you owe, or how much you are paying. This is especially important when you’re able to make extra payments and pay down debt such as student loans, credit cards, or mortgages faster. The missed cost savings from not following your balances closely can be significant. Avoid this blunder by making a point of checking balances regularly.

7. Unexpected Fees

With automatic payments, you may not actually review your bill before the payment is made. This means you may not notice hidden fees, increases in interest rates, or other changes or mistakes. Again, regularly reviewing your bill side-steps this concern.

8. Bills for Unused Subscriptions

It is easy to sign up for autopay for magazines, cable TV packages, satellite radio, health club memberships, and other subscription services — but then forget to unsubscribe if you stop using them. This can result in a lot of wasted money.

9. Remaining Manual Payment Bills Get Lost

If most of your bills are on autopay, it is easier for the few bills that you do pay manually to get lost in the shuffle. I have a few bills that I pay using electronic billpayer that are not automatic, and I sometimes set these aside until I get around to them. I have come close to missing due dates on these a few times. The solution: “Automate” the payment of manual bills, too, by setting payment reminders in your calendar.

Autopay is a phenomenal convenience, but over-relying on automation can cause you to miss important details, and potentially overpay in the process. Set reminders to look at your statements regularly in order to get the maximum cost savings and benefits from autopay.

Are you pro- or anti-autopay?

This article is from Dr Penny Pincher of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

These 5 Apps Will Help You Finally Organize Your Money

Andrea Cannon — Tue, 15 Sep 2015 13:00:19 +0000

Organizing your personal finances is the first step toward solid budgeting and savings habits. Fortunately, there are plenty of free apps that can help keep your finances and bills organized, right from your smartphone, tablet, or computer.

With the right app, you can keep track of where your money is going, maintain a steady budget every month, and make sure your bills are paid on time. Best of all, these apps are free, so it will cost you nothing to get your financial life on track.

1. Mint

Mint is a popular personal finance app that is easy to use and understand, and offers a complete picture of your financial life. It can show your cashflow in real time, so you know exactly how much you have and how much you owe. It will help you keep track of spending, create budgets, monitor your accounts, receive bill reminders, and even get your free credit score. You can also set spending limits for different categories and Mint will alert you if you are coming close to your limit. There is no easier way to track your checking and saving accounts, credit cards, and other debt and credit accounts in one central location.

Mint can also give you customized suggestions on ways to reduce fees, cut spending, and save even more money every month. The more financial and personal information you enter, the more accurate analysis and recommendations it can make. The app offers cross-platform syncing and during tax time, services like TurboTax can even download your financial information directly from Mint to save you time.

2. Empower

Empower can give you a complete view of your assets, liabilities, and investment holdings. In fact, Macworld named this the best free finance tracking app available. Similar to Mint, this award-winning finance app can help you track your spending, create budgets, and also includes your investments. You can even pair with an adviser to create a personalized portfolio plan through the app. Empower is ideal for anyone who currently invests, wants to invest more, or wants to include retirement planning. It takes less than a minute to sign up and can help you get control of your finances for good..

3. Goodbudget Budget Planner

Goodbudget (formerly EEBA, the Easy Envelope Budget Aid) is frequently recommended online because it makes it easier than ever to actually stick to a budget. The app can help you create a budget, save for expenses, and make sure you're meeting your goals. There are also charts available to help you visualize your spending. The cloud sync-enabled app allows you to share your budgets with other people in your household so that everyone is on the same page. Your transactions will also be instantly synced thanks to the cloud.

4. Quicken

Quicken is one of the most comprehensive tools for personal finance management. It can provide a complete picture of all your accounts by helping you track your spending habits, set a budget, get bill reminders, find your free credit score, and even save receipts. It is easy to use, set up, and link to all your financial accounts. You can connect the app to your Quicken desktop software and it also automatically syncs data from your computer to your phone to your tablet, so you can have a complete grasp of your financial accounts, no matter where you are. The app also offers convenient spending graphs so you can see where you are spending and where you could be saving.

5. Spending Tracker

What better way to track your spending and budget than with a Spending Tracker? The app is user-friendly and easy to set up. You can easily record expenses and income, pull reports on spending, view interactive bar and pie charts, and more. You can also set a fixed budget amount make sure you are remaining under budget every month.

What are your favorite apps and online tools to help organize your personal finances? Please share your thoughts in the comments!

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This article is from Andrea Cannon of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Ways Your Savings Account May Be Costing You

Tim Lemke — Mon, 17 Aug 2015 09:00:17 +0000

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.

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.

1. Terrible Interest Rates

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 and CapitalOne360 offer some of the best rates around, so look there first. (See also: 5 Best Online Savings Accounts)

2. Fees

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.

3. You're Putting Too Much Into It

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.

4. A Lack of Sub-Accounts

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 "new car fund," 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.

5. The Online Security Stinks

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.

6. Poor Access to Good CDs

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.

7. A Dearth of Online and Mobile Services

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.

8. It's Not Even Your Account

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.

How is your savings account holding you back?

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This article is from Tim Lemke of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

15 Modern Life Skills Everyone Should Master

Amanda Meadows — Tue, 21 Apr 2015 13:00:21 +0000

It's 2015, people! That means there's no excuse not to learn these 15 basic tech skills that will save you money, time, and embarrassment when talking to more tech-savvy know-it-alls.

1. Use Uber and Lyft

Taxis are expensive, and not every city has a fast and expansive public transit system. That's why Uber and Lyft are great alternatives, especially when you plan to drink.

2. Make a Basic Website

You never know when you might need to have your own website, and if you're a freelancer, it's a must. With platforms like Squarespace and Wix, it's never been easier (or cheaper) to make your own website.

3. Set-Up Online Banking

Are you still going to the bank to check balances and move money around? That's insane. It's about time you enrolled in online banking at your institution. It's as easy as going to your bank's website, clicking on "online banking," and following the instructions.

4. Update Your Facebook Privacy Settings

Don't want just anyone to see your private posts? It's time to learn how to edit your privacy settings on social networks, especially Facebook.

5. Transfer Money Instantly

At this point, Western Union and other traditional money wire companies are useless. Every bank offers transfers within their banking app, and it's instant when transferring within the same bank. Failing that, PayPal's new app is simpler than ever.

6. Operate Bluetooth Accessories

Want to use all the cool new speakers, keyboards, mouses, headphones, and more? You will need to master the Bluetooth connection. Here's how to do it for Windows, Mac, Android, and iPhone.

7. Edit a Smartphone Photo

Are you one of those people who uploads your photos sideways or too dark? There's no excuse! Most mobile phones allow for you to crop, rotate, adjust brightness or contrast, and more, all with a couple finger taps. Want to get creative? Try some cool photo editing apps.

8. Comparison Shop With Barcodes

Out shopping and want to check prices elsewhere? A great cheat is to use the Amazon app, which uses your phone's camera to scan barcodes. It will show you the same product and its Amazon price. Google Shopping is also helpful when on a computer.

9. Crowdsource Information

Learn the art of the ask. Sometimes you don't have the time or enough prior knowledge of something to Google it, and that's when asking your friends comes in. Being able to ask your social network for their expertise is clutch in this modern age.

10. Invest Your Own Money

Why hire someone to take over your money management when you can day trade and manage your investments online? If you're putting off saving for retirement, it has never been easier to start. Learn more about how to start saving.

11. Upgrade Your Email

Email is still a very important part of work and personal communication, but issues like cluttered inboxes, unsynced calendars, non-replies, and copious newsletters make email frustrating. There are plenty of extremely useful email plug-ins to increase your productivity!

12. Google Better

Everyone knows about using quotes and the plus and minus while searching, but did you know about the tip calculator? What about reverse image search? Polish your Google prowess with these key search hacks to get the results you're looking for.

13. Use Siri

"Siri" (or "Cortana," or "Google") as a tool can seem silly and time consuming, so many people don't use her. However, there are some instances in which she's indispensable, such as sending text messages and making calls in the car. There are tons of other cool things Siri can do, too.

14. Use GPS Apps

If you're still printing out maps before you leave the house, it's time to stop. GPS has come a long way. (Remember those old Garmin GPS machines you had to buy back in the 00s that worked poorly?) Google Maps is the best, but Waze is excellent for those looking to snake their way out of traffic or avoid highways. You can save locations, pre-plan trips, and add new locations with voice-control while driving.

15. Troubleshoot Your Wi-Fi

You don't need an IT person to fix your Wi-Fi. Computers have made it extra easy to troubleshoot a connection. Check your laptop's network settings and troubleshoot your Wi-Fi on your own. When all else fails, you can always reset your router! Another hack: many smartphones can be used as a Wi-Fi hotspot. Simply go to your phone's general settings, to networks, then tap "use as hotspot" and follow the password directions.

What modern life skill do you think everyone should master?

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This article is from Amanda Meadows of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Ask the Readers: Do You Use an Online Bank?

Ashley Jacobs — Tue, 30 Sep 2014 15:00:08 +0000

We have more banking options today than ever before. If you don't like traditional banks, you can opt for a credit union. While most banks give allow you to manage your money online, many people are attracted by the rates and convenience of purely online banks, like Ally and Everbank.

Do you use an online bank? What were your reasons for choosing an online bank — or for using a bank (or credit union) with physical locations? Are you happy with your bank?

Tell us whether you use an online bank and we'll enter you in a drawing to win a $20 Amazon Gift Card!

Win 1 of 3 $20 Amazon Gift Cards

We're doing three giveaways — here's how you can win!

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Post your answer in the comments below. One commenter will be randomly selected to win a $20 Amazon Gift Card!

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You can tweet about our giveaway for an extra entry. Also, our Facebook fans can get an extra entry too! Use our Rafflecopter widget for your chance to win one of the other two Amazon Gift Cards:

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Contest ends Monday, October 6th at 11:59 p.m. Pacific. Winners will be announced after October 6th on the original post. Winners will also be contacted via email.
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Good Luck!

Tell us whether you use an online bank and we'll enter you in a drawing to win a $20 Amazon Gift Card!

This article is from Ashley Jacobs of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Reasons to Love Your Bank

Elizabeth Lang — Mon, 27 May 2013 10:24:33 +0000

No one likes banks these days. The media is telling us that they are charging more fees and are to blame for the financial crisis. But the reality is that now is the time to love your bank more than ever.

Imagine that a security company guarded your house around the clock. If a burglar ever broke in and stole something valuable, like the family silver or your TV, your security company would replace them, no questions asked. You can come and go into your house as you please and even contact the company guarding your house around the clock — in person, by email, by phone. And sometimes, the company will even pay you for the privilege of guarding your house. (See also: Think Twice Before Ditching Your Current Bank)

This is similar to what a bank does for your money.

1. Your Bank Keeps Your Money Completely Safe

The nuts and bolts of banks, as the average consumer uses them, is that you give your money to your bank, and your bank protects it. The very best reason to use a bank is that you don't have to worry about your money getting lost or stolen. Keeping it under the mattress is not the best bet. In the unlikely event your bank fails, the government insures your deposits up to $250,000. If you like any other company that provides similar services (insurance, for instance), then you should like your bank.

2. Your Bank Provides Amazing Services

Besides just protecting your money, your bank also provides amazing services. Your bank gives you the ability to pay for something nearly anywhere you want by using a debit card. You don't have to carry around cash (and risk it getting lost or stolen). If you need or prefer cash, you can use an ATM to retrieve your money on nearly any street corner. And with ATMs you can even deposit checks, so you don't have to go to the hassle of waiting in line.

But let's say you want to talk with a real person about your money. You can go to a bank branch and get personal service. You can sit down with a banker and have them help you customize your accounts. Just today, I walked into a branch of my bank, and within two minutes a banker helped me close a business account that I no longer needed. He was extremely friendly and asked me if there was anything else he could do to help me. Previously a banker set me up with a permanent fee-waiver for my ATM card. That's great service.

Your bank likely allows you to transfer money online, get your account balance from anywhere, and track your spending and savings. Depending on the type of account you may even earn interest on the money you keep at your bank. And these are just the basic services your bank likely provides. Every day banks are rolling out more features — like banking apps — all for free.

3. You Can Often Get All of a Bank's Services for Free

All of the services I listed above? Many banks will give these services to you for free. Even if your account is listed as having a fee, walk into your bank and ask a banker if there is a way to waive it. Often, if you "bundle" services, your bank will waive the monthly charge. For example, see about opening a deposit account, setting up recurring transfers, or enabling direct deposit. Or maybe it's worth refinancing your home with a mortgage from your bank.

4. If You're Paying a Fee, You're Likely Getting Great Side Benefits

If you are paying a fee on your account, you are likely getting some additional benefits. Some fee checking accounts pay interest, provide free checks, or give you a cash rebate for the amount spent on your debit card. (If you're paying a fee and aren't getting any benefits, ask how to get a fee waiver or see point six below.)

5. Banks Are Subject to More and More Governmental Scrutiny

Every day, banks become subject to more and more governmental scrutiny. Some of these regulations may be warranted, but for the most part they are harming the community bank down your street. (That's the bank where not only will they be more likely to know your name, but you're most likely to get a loan if you want to start a business.) And these regulations are costing banks money to comply with. But banks are still passing very few of these costs onto the average consumer. And that's another great reason to love your bank.

6. You Can Change Banks

If you don't love your bank, you should switch. It's that simple. Every other bank wants you as a customer and you should make the most of that situation. If you don't feel that your bank is giving you the services and support you need, find another bank. Consider an online-only bank or the community bank down the street. There are thousands of banks. Think of the services you need, and find a bank that meets your criteria. If you were trusting the safety and security of your home to a company, you'd spend some time ensuring that it's the best fit for you. Do the same with your money and find a bank that you love.

What's great about your bank?

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This article is from Elizabeth Lang of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

How to Set Up Automatic Payments

Debbie Dragon — Tue, 15 Nov 2011 10:36:34 +0000

Using automatic payments allows you to pay your bills on auto-pilot. You don't have to sit down and write out checks to mail to your creditors each month, and you don't even have to log into your various online accounts to pay your bills online, either. When set up correctly, automatic payments will simply pay your bills at the frequency you indicate, with no further action required on your part. (See also: 6 Tips to Shrink Your Bills Every Year)

There are two basic methods for setting up automatic payments: through your own bank or through each individual creditor's website. Here is what you need to know.

Automatic Payment Options Through a Bank's Online Bill Pay

Most every bank offers online bill pay. This allows account holders to send money from their checking or savings accounts to whoever they want, at whatever frequency they want. Some banks physically print checks and mail them to your creditors, while others will transfer money electronically.

You can set up your automatic payments by logging in to your bank's bill pay website, setting up a new payee, and entering the account number of the creditor or utility you want to pay in the appropriate fields. Most banks allow you to set up recurring payment frequencies — which means you can schedule your credit card payments, for example, to send each month before they're due and not have to worry about sending the payment on time. Some banks will not allow you to create recurring payments, in which case you will still need to sit down at the computer every time you need to make a payment.

The benefit of using a bank's online bill pay service over individual creditors' websites is that you can log in to one account and view all your scheduled payments in one place rather than logging in to multiple accounts.

If your current bank does not have automatic payments or doesn't allow you to set up recurring payments, then you can use a service like MyBankTracker.com to compare banks and find checking and savings accounts that do offer online bill pay services.

Automatic Payment Options Through Your Creditors' Websites

The other option you have for setting up automatic payments is through each of your creditor's and utility account's websites. Most credit card companies and utilities have online account management systems that allow account holders to log in and schedule payments. Many also offer options for setting up recurring payments — for example, you can set up most credit card accounts to pull money from your bank account each week, biweekly, or monthly.

Many utility companies allow you to set up automatic payments that will pull your payment from your bank account when it's due without any further action from you to make sure it gets paid on time.

Automatic Payment Pitfalls to Watch Out For

With all of the benefits offered through automatic payments, there are some pitfalls and potential problems to watch out for. The biggest pitfall people sometimes experience with automatic payments is a little mistake that can add up to hundreds of dollars. Let's say you set all of your accounts to get paid automatically, but then have an unexpected change in your income. If your income fluctuates, or a paycheck isn't deposited on time for any reason, you may find yourself with a bank account balance that isn't high enough to cover all of your automatic payments. This results in overdrafts that can quickly add up. If you had not been using automatic payments, a change in your income or delayed deposit isn't as big of a deal, since you could just hold off making your bill payment until the deposit clears.

If you are using your bank's online bill pay feature, make sure you know whether or not there is a fee for this service. Some banks offer online bill pay through savings accounts or checking accounts for free, while others charge a monthly service fee for access. Most online banks offer online bill payment for free.

When you use an individual creditor's website for automatic payments, sometimes there is a limit to how many payments will be made automatically before you need to log back into your account and schedule more. Thus, you might set everything up to make your payments on time and then realize three months later your automatic payments have stopped. Since you had been expecting your payments to get sent automatically, there's a good chance everything will be late before you realize the automatic payments ceased. Double check each of your creditor's and utilities' websites for details on the frequency of payments, and if you have accounts that only allow you to schedule a limited amount of payments at a time before you need to set it up again, make sure you mark it on your calendar or set an alert on your phone so you remember to log in and set it up again.

This article is from Debbie Dragon of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Ask the Readers: Do You Use Online Banking?

Ashley Jacobs — Tue, 18 Oct 2011 10:36:16 +0000

Editor's Note: Congratulations to windkey, Verl, and jenn for winning this week's contest!

Technology makes it possible to do almost everything online. From ordering groceries to buying books to paying your bills, you can rely on the Internet for almost anything. While most people have switched over to online banking, there are still people out there who opt to continue getting bank statements in the mail.

Do you use online banking? Why or why not?

Tell us if you use online banking and we'll enter you in a drawing to win a $20 Amazon Gift Card!

Win 1 of 3 $20 Amazon Gift Cards

We're doing three giveaways — one for random comments, one for random Facebook "Likes", and another one for random tweets.

Mandatory Entry:

Post your answer in the comments below

For extra entries (1 per action):

Go to our Facebook page, "Like" us, and leave a comment telling us you did, or
Tweet your answer. You have to be a follower of our @wisebread account. Include both "@wisebread" and "#WBAsk" in your tweet so we'll see it and count it. Leave a link to your tweet (click the timestamp for the individual URL) in a separate comment.

If you're inspired to write a whole blog post OR you have a photo on flickr to share, please link to it in the comments or tweet it.

Giveaway Rules:

Contest ends Monday, October 24th at 11:59 pm Pacific. Winners will be announced after October 24th on the original post. Winners will also be contacted via email.
You can enter all three drawings — once by leaving a comment, once by liking our Facebook update, and once by tweeting.
This promotion is in no way sponsored, endorsed or administered, or associated with Facebook.
You must be 18 and US resident to enter. Void where prohibited.

Note: Due to recent changes in Facebook's promotions guidelines, we have restructured the entry format of our giveaways.

Good Luck!

Tell us if you use online banking and we'll enter you in a drawing to win a $20 Amazon Gift Card!

This article is from Ashley Jacobs of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

8 Ways Technology Can Streamline Financial Management

David Ning — Thu, 27 Jan 2011 14:36:32 +0000

There are so many financial tools we take for granted today that weren't possible just 10 short years ago. Here are a few features many people use daily that, if you haven't tried yet, you should.

1. Bill Pay

I still remember my mom showing me how she paid her bills by writing a check, putting it in an envelope, adding a stamp, and mailing it off. These days, you can have all this done for you with a few clicks online. If you really want to save time, you can even have everything automatically deducted from your account. There's no mess, and you're saving yourself from buying all those stamps too.

2. Receipt Storage and Tracking

If you are a business that needs to keep track of your receipts, then it's time to scan everything with a receipt scanner and store it online with a service such as Evernote. It's much more organized, it saves a ton of space, and in the event that you need to access the information, you can actually find something!

3. Online Savings Accounts

When even the bank employees secretly tell you that they use online savings accounts instead of using their own bank's saving products, you know you should follow. Yields are terrible everywhere, but it doesn't mean you should accept a rate of 0.11% when you can get 10 times the interest online!

4. Direct Deposit

I take comfort in knowing that almost everybody in the United States receives pay through direct deposit, but if you still haven't switched for whatever reason, please do. You can even get your company to deposit it into a savings account, earning you more precious interest while you have money sitting there.

5. Up-to-Date Financial Pictures

Most people know that they can get up-to-the second account balances these days, but few people actually them to manage their finances. There should not be any reason for people to overdraft their accounts or spend too much on their credit cards. Use your access, and you will find that many of the careless fees that you regularly accumulate will magically go away.

6. Financial Management Anytime

All right, I'm not advocating that you should do everything late at night. But if you are one of those people who always remembers items on your to-do list at the worst times (while driving, at work, when out with friends, late at night, etc.), then you absolutely need to try using new technology to your advantage. Whether it's asset allocation, logging your expenses, or looking for online coupons, you can do it anywhere, anytime. Even with investment decisions, you can plan your strategy in advance and have the computer schedule the whole execution without your supervision. No more excuses.

7. Researching Products, Services, and Ideas

Before you make any decisions these days, the standard procedure should be to research online and see what others have said. This works with deciding on a financial planner, a brokerage account, or even an investment strategy. Chances are good that after you read a bunch of reviews on other people's experiences, you will get a much better feel of which direction to take.

8. Reading About Common Investor Mistakes

With the increased exposure to free information, we can better deal with our emotions when it comes to investing. After the 99th time of hearing about people paying through the nose with load funds, I'm sure anyone will start look for low-cost alternatives.

Technology can be a curse, but it also opens doors for you to radically improve and streamline money matters, saving you a ton of time and helping you make, save, and keep more money.

This article is from David Ning of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

Paper Checks: Going, Going...Gone?

Tisha Tolar — Fri, 14 Jan 2011 13:00:12 +0000

Many Americans still retain a checking account for the purpose of writing actual paper checks. Consumers continue to use paper checks out of habit, convenience, security, or having no other option with a vendor. But there are big changes on the horizon that may cancel the use of personal checks or paper checks in general. Are you ready to go paperless? (See also: Why I Still Write Paper Checks)

Who’s Changing and Why?

Many creditors, lenders, utility services, and even federal and state government agencies are shying away from issuing or receiving paper checks. For instance, those who receive child support payments now do so through a debit card and direct deposits. Banks and other vendors are offering incentives for customers to go electronic. Paper statements and paper checks are becoming a thing of the past.

The move to electronic payments and direct deposits essentially all comes down to the cost factor. In order to save money and cut expenses, state and federal agencies especially are making the switch. There is more cooperation between banks and government agencies to keep programs moving forward and organized.

While some feel the move is not such a great idea, there are benefits for both sides. Vendors benefit because their overhead is lowered. For consumers, the receipt of child support payments or unemployment benefits is seamless. No more waiting for the mailman or worrying over lost or stolen checks. Payments are now being made via direct deposit onto a debit card issued by the agency responsible for payment. For each payment, cards are reloaded automatically.

What to Watch For

While cost and convenience are certainly pluses to both vendors and consumers, this changes the rules. Without understanding the changes, consumers will likely end up making mistakes that will cost them cash because they didn’t know any better. Here are some essential things you need to know about going electronic:

Unexpected Fees

Most governmental agencies do not charge a fee for money being reloaded onto a card. This may be the case now but not always. In the case where you receive a refund or a rebate from a retail store or other entity, funds issued through a debit/credit card may not be fee-free. You may have to pay fees for each transaction you make or for reloading a card with new funds. There may also be additional fees for use at an ATM or for maintaining an inactive card. Check with the terms and conditions of the card in refund situations. It may be better to ask for a store credit rather than getting stuck with fees and losing your access to the full amount you are owed.

Balance Checks

With some cards you may incur a fee for using your card in any capacity at an ATM, including for a simple balance transfer. Find out if you are going to be charged for balance checks done over the phone or the Internet. If fees are incurred, it would be smart to keep tabs on your expenditures on a piece of paper rather than lose cash to a series of fees. This is also key because if you go over the amount of funds on the card when making a purchase, your card will either be declined or you’ll be hit with a pretty significant overdraft fee for each transaction you make over your limit. Not only will you be out of funds, you’ll be responsible for paying the overage charges.

Keeping Your Card Safe

While a plastic card may be much more convenient than a paper check, there is still a risk of having it stolen or losing it. A lost card may cost you up to $25 to replace, so make sure you keep your card in a safe place at all times. Not only do you face fees, you’ll also lose access to your funds during the processing time.

Online Security

If you are making payments to vendors such as your utility companies, mortgage lenders, or loan providers, be very careful about your online security measures. While most banks and legitimate vendors will have established a thoroughly secure system for accepting payments online, you must make sure your own computer is safe. It is not advisable to store passwords online or on your mobile phone because of the potential for identity theft.

Card Rules

Federal assistance programs and refunds issued through debit cards may also come with special use rules that you need to understand. There may be limitations to what you can use the card for, and you need to be prepared to follow such rules. For instance, government programs such as food assistance programs will only allow for certain purchases to be made on the card. You may also only be able to use your card for a certain amount of transactions within a month’s time period.

This article is from Tisha Tolar of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

6 Simple Ways to Safeguard Against Bank Bullying

David Ning — Thu, 02 Dec 2010 13:00:10 +0000

Reports showed that banks made $38 billion last year, which sounds beyond ridiculous. But there also hasn't been an easier time for us to eliminate all these fees either. Instead of being upset about an overdraft fee, why not just try to avoid the fees all together? After all, not losing money to a corporate giant is even better than making that same amount when you consider taxes and everything. And the joy of using the system against the banks? Priceless. Here are a six suggestions:

Make Everything Electronic

One of the reasons people get dinged with fees is because they try to manage their finances in their heads. All the bills, income, cash flow, charges, budgeting, and savings are done as they come. If you can make everything electronic, where you can schedule all payments via online bill pay (or better yet, pay them as soon as they come in). Then there's a much smaller chance that you will forget and incur late fees. (See also: How to Set Up Automatic Payments)

Simplify Your Accounts

Another gotcha is all the accounts that people have. If you have one account where every payment originates, and if that account is also where your paycheck is going, then it's much easier to keep track of. If you want to be even more on top of your finances, try to use the same method to pay all your bills. If you like to use your credit card, then use it to pay all your bills. If you like the online bill pay method, then use that. You might lose out on some credit card rewards if some of your bills don't accept credit cards as a payment method and you have to switch everything to bill pay, but if you can't keep track of your expenses, any benefits from those rewards are lost anyway.

Keep More Money in Your Checking Account

Or to put another way, know how much money you have and don't spend money you don't. No matter how much money you have (or want to keep in that account), you need to be aware of your balance when you make a withdrawal. It sounds obvious, but the only way someone gets charged an overdraft fee is if a withdrawal is made for money they don't have in the account. Many people actually get charged these fees not because they don't have enough money, but because they move too much to other accounts. If this is you, consider that the 1.5% interest you most likely get from that $1,000 in your savings account is only $15 a year, and after taxes, it is even less. Is it really worth the hassle?

Avoid Monthly (or Maintenance) Fees

I truly believe that the reason why banks have so many different types of accounts is to confuse us and make more money. If you are still paying monthly fees for just having an account, you can go to your branch and ask them for ways to eliminate them. It might require a different account or getting your statement electronically. If you are told there is no way to eliminate your fees, just find another bank! (Here are 3 more reasons to switch banks.)

Schedule Your ATM Withdraws

I would tell you to use your credit card for everything, but as statistics show, most people can't be trusted with one! If you are the cash type, a little planning ahead can help you avoid withdrawing from an ATM that's out of network, incurring charges. Doing so might even help you manage your money better and help you save. But if you are adamant about getting cash anytime and anywhere, why not find one of the checking accounts out there that will refund your ATM fees? ING, Charles Schwab and E*Trade all have one.

Seriously Consider an Online Savings Account

You won't be reducing your fees with this one, but you are probably wasting too much money by having your money sitting in your traditional saving account. If you haven't looked into savings accounts that are available only online, you are missing out on some guaranteed higher interest rates. Here are some of the best high-yield online savings account rates.

Smack yourself on the head if you don't add any of these five bank-related items to your to-do list today.

This article is from David Ning of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread:

3 Ways Technology Makes Personal Finances Easier

Greg Go — Tue, 17 Nov 2009 14:00:01 +0000

This article is Wise Bread's contribution to Life Scoop, where ordinary people learn how to make surprising things happen with technology.

From saving money to staying on budget, technology has made it easier than ever to stay on top of my personal finances. Here are 3 ways technology has helped me save money and time.

1. Banking, budgeting, and investment tracking always within reach.

iPhone apps from Bank of America and Bloomberg

Smartphones (and even regular cellphones) puts control of my finances in my pocket.

Banking has become much easier since I got my iPhone. I can check balances, transfer money between accounts, and look for the nearest ATM just by pulling out my phone. Even folks with regular cellphones can check bank balances and/or get low balance alerts via text messages.

Budgeting -- really, sticking to a budget -- is now 10 times easier with my iPhone. One of the problems I had with sticking to a budget was keeping track of my spending. At first, I was good about keeping receipts and entering the totals into a spreadsheet at the end of the day. But as the days went by, I got lazier about entering receipts each day. Eventually, I stopped tracking my spending altogether.

These days, I can enter amounts I've spent into my phone right away. Even when I didn't have a smartphone, my regular cellphone had a way to store simple notes. This made it easier to keep track of my spending on a day to day basis.

Once I started using Mint.com (and their great iPhone app), the process got even simpler. If I use a debit or credit card, the transaction is added to my Mint account automatically. Even better, Mint does a good job of automatically categorizing expenditures, which makes analyzing my spending at the end of the month easier and more accurate.

Finally, keeping track of how my favorite stocks are doing is now a breeze with the Bloomberg iPhone app. I can now easily check my portfolio daily, and make trades as soon as I notice trends or hear interesting news. Rather than waiting until the end of the month to look over statements or meeting with my broker once every quarter, I can now stay on top of my investment portfolio while waiting in line or when I'm having lunch. The iPhone has made me a faster and smarter investor.

2. Crowdsourcing my way to better buying decisions.

Making smarter buys with consumer reviews on Yelp and Amazon.

Between local business review site Yelp and Amazon's customer reviews, I now buy with a lot more confidence. No more wasting money on restaurants or products that disappoint. Nowadays, I hardly ever walk into a new restaurant before checking out what fellow foodies have to say about the place on Yelp. And I almost never buy something without checking Amazon's user reviews. Thanks for the recommendations, world!

By the way, both Amazon and Yelp have iPhone apps so I can look up reviews while standing in front of a new restaurant or walking around a big box store.

3. More data than ever available to consumers.

Zillow provides info previously only available to real estate agents.

The Internet has been a boon to consumers hungry for information. Not just product reviews, but large scale trending data that helps them make big purchases. I'm looking to buy a home in the next year or so, and I've been a frequent visitor to Zillow. I haven't even contacted a real estate broker yet, but I feel like I already know more about the real estate market in my area than my parents ever did when they were house shopping.

Rather than depend on an agent to feed me limited information, I can use Zillow to get a list of all houses on sale in my neighborhood, details about each home (including nearby schools, lots of photos, and a bird's eye view of the neighborhood), and even historical charts of the home and neighborhood's value. Technology has given us home shoppers unparalleled information that was previously only available to professional real estate agents.

Once I am ready to make an offer, I can use another site, SmartHippo, to shop for mortgages. SmartHippo is Yelp-for-mortgages. Consumers review their lending institutions and even individual agents. Again, leveraging the power of the crowd to make smarter buying decisions!

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For more ways to do everyday tasks better, faster, and smarter, check out these great tips from Life Scoop:

This article is from Greg Go of Wise Bread, an award-winning personal finance and credit card comparison website. Read more great articles from Wise Bread: