Banks/Credit Unions
Why You Need Two Savings Accounts
Monday, January 4th, 2010
A very common New Year’s resolution is to save more money. That’s a worthy goal, but I recommend that you maintain two savings accounts—an “If” savings account and a near-term “When” savings account. “If” savings is your emergency fund. It’s for all of life’s if’s—if you incur significant medical or house repair expenses that are ... [Read more]
The Credit Card Game is Changing
Monday, December 21st, 2009
Sweeping changes are coming to the credit card world, with issuers facing many new rules and regulations starting February 22nd. The Credit CARD Act will restrict issuers’ ability to raise interest rates, prohibit them from charging various fees, and more. As a result, according to an article in The Wall Street Journal, issuers are quick ... [Read more]
Becoming a Nation of Savers
Monday, December 21st, 2009
After many years of declines in our household savings rate, the recession seems to have sparked a savings revival. The rate even hit a high of 6.4 percent of disposable income in May, the highest since 1993. It was 4.4 percent in the most recently reported month of October, whereas it had been hovering around ... [Read more]
Money Market Funds Lose Insurance Protection
Wednesday, September 23rd, 2009
A temporary program insuring money market funds has expired. However, according to an article in on Kiplinger.com, there’s not much reason to worry about the safety of money invested in such funds. The insurance program was put in place last fall after the Reserve Primary Fund “broke the buck” – that is, the fund’s investment ... [Read more]
Don’t Get Taken for a Fee Ride
Thursday, July 23rd, 2009
It wasn’t long ago that banks would not allow debit card transactions to go through if you didn’t have enough money in your checking account. But then they discovered how profitable it could be to allow such transactions and then hit you with an overdraft fee. Such fees will total an estimated $38.5 billion this ... [Read more]
Don’t Get Taken for a Fee Ride
Thursday, July 9th, 2009
It wasn’t long ago that banks would not allow debit card transactions to go through if you didn’t have enough money in your checking account. But then they discovered how profitable it could be to allow such transactions and then hit you with an overdraft fee. Such fees will total an estimated $38.5 billion this ... [Read more]
Amish Money Management
Tuesday, June 9th, 2009
There was an interesting post on the Houston Chronicle’s web site about the money management habits of the Amish. According to the story, Amish children all learn a trade such as farming, welding, or woodworking. Money earned through apprenticeships goes to their parents, who give the child 10 percent for spending and put the rest ... [Read more]
Overdraft Protection For Less
Wednesday, December 10th, 2008
More than three-quarters of all banks automatically enroll their customers in the most expensive form of overdraft protection. That’s a key finding from a new FDIC survey, as reported by MarketWatch. If you are among the 25 percent of people who spend more than is in your checking account at some point in a given ... [Read more]
More Savings Now Insured
Wednesday, October 8th, 2008
Previously, I mentioned that the federal government is now insuring money saved in money market mutual funds. The move was made in response to a rare dip below a dollar for the value of shares in the Reserve Primary Fund. Two points of clarification are warranted. First, as reported by ABC News, the insurance only ... [Read more]
Money Market Funds Now (Temporarily) Insured
Wednesday, September 24th, 2008
Whereas money market accounts are a type of insured savings account offered by banks and credit unions, money market funds are mutual funds, which until last week were not insured against investment loss. Historically, money market funds have been widely viewed as extremely safe. However, within the mix of bad news last week came word ... [Read more]
Making Sure Your Money Is Safe
Wednesday, September 24th, 2008
The news of the past couple of weeks has been unsettling for many people, with Lehman Brothers filing for bankruptcy, Merrill Lynch being sold, and AIG getting a government bailout. Even if you don’t have money in these institutions it can make you wonder how safe your money is. In the midst of all the ... [Read more]
Protect Yourself From Overdraft Protection
Monday, August 18th, 2008
If you use your debit card to make a purchase but don’t have enough money in your account, chances are good that your bank will allow the transaction to go through, helping you avoid the embarrassment of a checkout line rejection. However, as pointed out in a recent CNNMoney.com article, there’s a cost to the ... [Read more]
Too Few Playing the Savings Game
Wednesday, March 12th, 2008
Just 28 percent of all Americans say they save at least 10 percent of their income. That’s one of the findings from a new survey by the American Savings Education Council. What percentage of your monthly gross income do you save each month? For most people, 10 percent should be the absolute minimum. Do you ... [Read more]
Savings Momentum
Sunday, February 10th, 2008
A hot topic among “consumer behavior” researchers is “shopping momentum.” The idea is that once a shopper makes a purchase they cross an important threshold making it much more likely that they’ll make other purchases on the same trip. While marketers work at spurring faster first purchases, I wonder if the same concept might apply ... [Read more]
