Does your bank want you off their books?

By Justin Boyle

When I moved to Texas, I needed a new checking account. I had previously lived in Phoenix, Arizona, and had almost exclusively used a local credit union to store and borrow money. Wells Fargo was the only option I could find that offered a no-fee account (at the time, in 2004, they did), so I entered the world of the national bank customer.

I harbor no regrets about opening that account, especially since it served to establish in-state residency and made it possible for me to afford to go back to school the following year. Now, though, some Wells Fargo customers might begin to have second thoughts about their choice of banking institution. Let's take a look at why.

By Richard Barrington

Were you taught the facts of life by your parents, or did you have to pick them up here and there and by experience?

No, this isn't referring to those facts of life, but to some of the basic financial skills just about everyone needs as they go out into the world. Here are five financial facts you should make sure your children understand before you help them open their first bank accounts:

1. Smart shopping makes a huge difference in banking

Your children may think of smart shopping as a way to occasionally save a few dollars, but there is a whole new world waiting for them when it comes time to find a bank account. Because a bank account is there every day, either earning interest or incurring fees, the right choices add up to big bucks over the course of a year.

For example, many banks, led by some of the biggest names in the business, have been raising fees on checking accounts. At the same time, free checking does still exist at some banks. The difference between a $12 monthly fee and no fee comes to $144 a year--a huge chunk of what the typical student is likely to have in a checking account.

Similarly, shopping for a high interest savings account means making more money each and every day. "High interest savings account" might seem like a contradiction of terms these days, but everything is relative. With average savings account rates at 0.15 percent, a Read the full article »

By Beth Orenstein

When was the last time you were in your bank? It was probably when you opened your accounts. Thanks to ATMs, online banking and your smart phone app, who needs a teller? You know the money is there when bills are due.

Because we're all so busy--with work and family and friends--it's easy to pay such little attention to our bank accounts. But you really shouldn't take a cavalier attitude about banking. Doing so could be costing you a lot of money.

Here are four of the most common mistakes when it comes to banking - and how to avoid them so that you're not losing money at a time when every penny counts.

1. Not checking your statements

Checking your accounts daily would be ideal, but since we don't live in a perfect world, the least you can do is check your monthly statements. These days, you probably get them via email--who doesn't want to help save paper and trees--but do you actually open the email and look at the statement?

It's a good idea to make sure all the deposits you made show up. Also, check that the withdrawals you made are for the correct amounts. Were you charged any fees on your savings account or checking account that you shouldn't have been? If you find a mistake, call it to your bank's attention immediately. If there's a mistake, it could be quite costly.

By law (Regulation E), banks are required to pay for any losses greater than $50 caused by Read the full article »

By Jim Sloan

With more than six companies being victimized by cyber attacks in recent months, it may seem like hackers are enjoying free access to our credit cards and bank account numbers. These security breaches, such as the one that compromised 200,000 Citigroup credit card customers and up to 100 million Sony Playstation customers, make many of us leery of doing any kind of online banking or shopping with valid credit card numbers.

But the truth is that there are many actions banks and companies are already doing to keep our valid credit card numbers safe. Consumers also have plenty of tools available to ensure that their accounts--from zero interest credit cards to 0 balance transfer credit cards--remain safe.

The size of the problem

Although the Citigroup hackers were able to get valid credit card numbers and contact information, the cyber crooks were not able to get those customers' Social Security numbers, birthdays and credit card security codes. That means the hackers won't be able to make direct charges...

By Jim Sloan

Banks used to make a lot of money off your mistakes--your overdrafts, your late fees and the penalties you paid for skipping a monthly credit card payment. But since Congress decided that many of those revenue-raising practices had to stop, the banks are back at your doorstep with a whole slew of new fees.

While the new charges might be less underhanded than the ones banned by Congress, they are just as annoying to consumers, and have sent many running from their brick-and-mortar banks to online savings banks.

But those of you staying with a traditional bank may find that the new fees being proposed require that you be more vigilant than ever to keep the banks from siphoning off your savings to help their bottom line.

Why banks need money

Banks have been stung in recent years by federal reforms that limit how they collect fees for overdrafts and credit cards...

By Jim Sloan

Although the interest rates banks are paying these days are painfully low, students and others just out of college should consider opening a rewards checking account. Rewards checking accounts offer some of the highest rates around, and the little extra you can earn in interest with one of these accounts can go a long way when you're just starting out.

Rewards and returns

Rewards checking accounts pay interest on your balances up to a certain level but require that you meet certain levels of account activity.

According to USA Today, rewards checking accounts are often a better investment than certificates of deposit, which lock up your money for a set term. Also, these checking accounts often give you better access to your cash than even the best savings accounts or money market accounts. Interest checking accounts provide an incentive to save and are a great way to get established and handle most of your day-to-day financial needs.

Good interest checking accounts can be found with many of the best online banks. But in addition there are often excellent interest rates paid for rewards checking accounts with smaller local banks and credit unions.

Terms to be aware of when comparing rewards checking accounts

One of the best checking offers available these days comes from Consumers Credit Union...