Global economic fears fuel bid for safety as the yield curve flattens.

The latest U.S. economic data heightened concerns that the United States will head back into recession at the same time the country’s rising debt load and record deficit leave the government and the Federal Reserve with fewer options to stimulate growth.

The data sparked a frenzy of buying that sent benchmark 10-year note yields as low as 1.97 percent, the lowest in official Federal Reserve and Treasury records, though private records indicate that yields fell below 2 percent at times during World War Two and the Great Depression.

Thirty-year bond yields also plunged as low as 3.34 percent, the lowest since January 2009.

Some economists and policymakers have been reducing growth estimates on weakening data and persistently high unemployment, leading investors to flee riskier assets.

These fears have overcome concern over rising inflation.

The U.S. yield curve flattened again on Thursday as near-zero short-term interest rates pushed investors to buy longer-dated bonds for a higher return.

The difference between 2- and 30-year yields narrowed to 324 basis points on Thursday from 337 basis points on Wednesday and the difference between 10- and 30-year yields shrank to 136 basis points on Thursday from 140 basis points on Thursday.

10-year Treasury Yield Falls Below 2 Percent is a post from: RateNerd - unadvertised deals from banks.

                          

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Kids rule when it comes to saving.

Piggy banks are great, but an online savings account — even better.

Kids love having money in the bank, and they’ll love feeling in charge of it, too.  ING DIRECT’s  new Kids Savings Account will help teach kids to be good savers.

The ING DIRECT Kids Savings Account is a kid-friendly bank account that teaches kids how to save their money the safe and responsible way. And like the Orange Savings Account, there are no fees, no minimums and the money is FDIC-insured.

The ING DIRECT Kids Savings Account pays a kid-friendly 1.00% variable Annual Percentage Yield (effective 02/23/2011), and has no fees, and no minimums.  By setting up a Kids Savings Account, you can have the “money talk” early – Show youngsters that stashing cash away is not only easy, it’s fun.

Teach kids to be Savers with an ING DIRECT Kids Savings Account℠. No fees. No minimums. Open online.

Kids can sign in to view their account(s) by entering their Customer Number or Saver ID and the Sign In PIN (Personal Identification Number) they created when opening their Kids Savings Account.

With the ING DIRECT Kids Savings Account, kids will be able to:

• Check their balance
• Change their personal info
• Change their PIN
• Change their account nickname
• Create a personalized ‘Saver ID’
• Download their account history, tax forms and eStatements

When the kid on your Kids Savings Account turns 18, the account will automatically convert to an Orange Savings Account. ING will send instructions to the new adult on how to set up a link so they can begin to contribute to their savings.

About ING DIRECT

Since launching in the U.S. in 2000, ING DIRECT – the operating name of ING Bank, fsb, a federally chartered savings bank – has become the largest direct bank in the United States.

ING DIRECT is a part of Netherlands-based ING (NYSE: ING), one of the largest financial services companies in the world, with employees operating in 50 countries. You can check ING out on the NYSE under the symbol ING.

Headquartered in Wilmington, Delaware, ING DIRECT does business online, over the phone and by mail. Without the overhead and high operational costs of other banks, ING can pass the savings onto Customers. Over 7 million Americans have entrusted their savings with ING DIRECT.

New ING DIRECT Kids Savings Account is a post from: RateNerd - unadvertised deals from banks.

                          

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3. WOW – 4.00% APY Rewards Checking Account Offer – Daily Deal
4. $100 Checking Account Offer From TCF Bank – Daily Deal

As inflation worries rise, act now for retirement security.

Americans are worried what inflation might do to their retirement finances.

According to a recent Thrivent Financial for Lutherans survey of 2,000 American adults, 93 percent of all respondents reported they worried at least “a little” about inflation’s impact on their retirement finances, and a majority, 53 percent, said they worried “a lot.”

Most likely to worry about inflation in retirement were those ages 45 to 54 and those with incomes of $25,000 to $49,999. Still, this fear wasn’t confined by age or income. Nearly half of respondents ages 18 to 34 as well as those with incomes above $75,000 say they worried a lot that inflation would negatively affect their finances during their retirement years.

“Fear of inflation in retirement runs deep and broad,” says Ann Koplin, of Thrivent Financial. “Given that people’s retirements can span 20 to 30 years or more, individuals really need to consider the impact that inflation may have on their long-term financial security.”

What’s the best way to confront this potential financial menace? Koplin says the first key is the obvious one: building a substantial retirement nest egg during one’s working years. “The more you can set aside for retirement, the more you’ll have available to deal with inflation,” Koplin observes. “Unfortunately, many people consider their nest egg the ‘finish line’ for their retirement finances, when it really represents the new ‘starting line.’”

How Much Should You Save For Your Retirement?

Workers often use tools like calculators like Discover Bank’s IRA Calculator to determine how much money they need to save to live a comfortable retirement. Especially in light of the changing economy, you may find it valuable to update your long term savings goals.

Most workers have experienced a setback in their retirement plans, due to the wild swings in the stock market. Going forward, you may have to save a larger percentage of your income to help achieve your original goals. Planners say your age will be the biggest factor in determining what your new retirement savings goals should be, and how much you need to put away.

“If you’re just starting to save and you’re in your 40s, you’ll need to save 15 percent of your annual income,” says Brent Kessel, CFP, author of “It’s Not About the Money” and co-founder of Abacus Wealth Partners. “And if you’re in your 50s and just starting to save for retirement, start saving 20 percent of your annual income.”

“At 45, 50 and 55, the essence is figuring out what they want to achieve,” Mattia says. “We’re not telling them to change their goals, but they might need to plan differently to reach them.”

Inflation and Retirement

While inflation may be low in any given year, it’s the cumulative effect that can really add up. “We’ve experienced low inflation in recent years, but even the constant nibble of 2 or 3 percent inflation over an extended period of time can take a big bite out of one’s purchasing power over the long haul. For example, in 1990, the average cost of a gallon of gas was $1.34 per gallon, and a loaf of bread was just 70 cents,” Koplin says.

The U.S. Bureau of Labor Statistics supports Koplin’s assertion. One dollar in 2001 had the same buying power as $1.25 today (2011), according to the bureau’s “CPI Inflation Calculator.” Twenty years ago that dollar had the buying power of $1.62 today, and 30 years ago it had the buying power of $2.43 today.

Given inflation’s constricting effect, Koplin says it may be wise for some retirees to keep a portion of their investments in assets that have the potential for growth, like stocks, or equity mutual funds. While these types of securities have historically shown the most volatility – the largest ups and downs – they also have historically fared well in relation to inflation.

This step alone, however, is not sufficient. Koplin suggests that retirees explore options to balance growth investments with products, like annuities, offering a guaranteed income or return. She says many retirees may benefit by periodically adding to this income base by converting a portion of their investment gains to their guaranteed income.

The final key to financial security in retirement is to carefully monitor and adjust one’s spending. Koplin says that some financial services organizations offer programs and services that help individuals align spending, growth and guarantees so that they can have increased confidence that they will not outlive their retirement assets.

“Having a financial strategy that is flexible enough to adapt to a person’s changing needs and circumstances is a must,” notes Koplin. “Inflation can be detrimental to one’s retirement finances, but carefully managing your money throughout your golden years can help counter inflation’s bite.”

Inflation’s Impact On Your Retirement Savings Account is a post from: RateNerd - unadvertised deals from banks.

                          

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We’ve found the best high interest savings accounts online for you to start 2011.

High interest savings accounts are often paying a premium interest rate when you sign up online.  We’ve compiled a list of the best savings accounts for you to consider in the new year.

Savings account rates online are very competitive, but with a little work you can find a low cost, low minimum savings account that is right for you.   We focus here on the biggest online savings account players, and an interesting auction bid system from Money Aisle.  So start savings now!

1.25% APY High Interest Savings Account from Discover Bank

Make up to six fast and free online money transfers per statement cycle with this savings account. The APY for the Online Savings Account as of December 28, 2010 is more than 5 times the national average APY for interest-bearing savings accounts with balances of $500 as reported by Informa Research Services, Inc as of December 28, 2010.  Discover Bank High Interest Savings Accounts

1.10% APY Online Savings Account from ING Direct

No Fees, No Minimums. No need to change banks – Your checking account will be automatically linked to your Orange Savings Account. Access your account quickly and easily online. Join over 8 million Savers using ING Direct. ING DIRECT USA Savings Account Online.

1.00% APY Online Savings Account from HSBC Advance

Only need $1 to start, and you don’t have to open a checking account with HSBC.   No monthly fees and no minimum balance requirement.  Just manage your account on HSBCadvanceUSA.com instead of at a branch. HSBC Advance Online Savings Account.

$100 Bonus With New U.S. Bank Savings Account

Open a savings account and get a $50 Visa Card. Then earn another $50 U.S. Bank Rewards Visa Card just by keeping a balance of $1,000 or more for a year. U.S. Bank Savings Account Offer.

Have Over 100 Banks Bid For Your Savings Account Business

At MoneyAisle, the banks and credit unions in their network compete in live auctions for your deposits. Certificates of deposit offered by banks in our network return up to 120% the national average. High-yield savings accounts yield up to 7x higher returns than the national average. MoneyAisle savings rates from FDIC insured banks.

1.21% APY High Interest Savings Account with WT Direct.

There is no minimum deposit required to open the account. For the first 60 days fromthe date the account is opened, regardless of the account balance, the account will earn 1.21% APY . After the first 60 days, the APY for the account will have two tiers: (a) a higher APY for accounts with balances of $10,000 or more (currently 1.21% APY); and (b) a lower APY for accounts with balances of less than $10,000 (currently 0.15% APY). WTDirect Online Savings Account Offer

Best Savings Accounts for 2011 is a post from: RateNerd - unadvertised deals from banks.

                          

Set long-term savings goals for your retirement to avoid making early, costly withdrawals.

Taking money out of tax-deferred retirement accounts like a 401(k) or an Individual Retirement Account (IRA) will cost you dearly—both in taxes and other penalties.  But a lot of  people are doing it,  creating a frightening trend.

You’ve worked for more than 20 years and you’re looking to retire in the next 20, but you’re worried about the struggling economy, fluctuating stock market and your shrinking investments-especially your 401(k). What should you do? Financial planners caution there’s one thing you shouldn’t do: Pull money out of your tax-deferred retirement accounts.

“More workers who are 45 and older have stopped putting money into 401(k)s and IRAs and are making withdrawals, which is extremely concerning,” says Laura Mattia, CFP, a wealth management principal with Baron Financial Group in Fairlawn, NJ. “At 45, you’re not planning to access that cash for another 20 to 25 years. If you take the money out now, you don’t give the market a chance to rebound, and you’ll lose a significant part of your investment.”

So, what should you do? Continue to contribute to your tax-deductible retirement accounts. If you’re uncomfortable with stocks and mutual funds, consider buying certificates of deposit (CDs) in an IRA account.

How Much Should You Save For Your Retirement?

Workers often use tools like calculators like Discover Bank’s IRA Calculator to determine how much money they need to save to live a comfortable retirement. Especially in light of the changing economy, you may find it valuable to update your long term savings goals.

Most workers have experienced a setback in their retirement plans, due to the wild swings in the stock market. Going forward, you may have to save a larger percentage of your income to help achieve your original goals. Planners say your age will be the biggest factor in determining what your new retirement savings goals should be, and how much you need to put away.

“If you’re just starting to save and you’re in your 40s, you’ll need to save 15 percent of your annual income,” says Brent Kessel, CFP, author of “It’s Not About the Money” and co-founder of Abacus Wealth Partners. “And if you’re in your 50s and just starting to save for retirement, start saving 20 percent of your annual income.”

“At 45, 50 and 55, the essence is figuring out what they want to achieve,” Mattia says. “We’re not telling them to change their goals, but they might need to plan differently to reach them.”

It’s Never Too Late To Start Saving

Mattia asks her clients two things: at what age they want to retire and how much spending money they anticipate needing each month to live. Then she works with clients to create a plan to meet those goals, or helps clients adjust them in case they are not realistic.

“Their goal may be to retire at 60 and have $8,000 a month to spend,” Mattia says. “I [try to] find out if 60 is a hard number. How about 62 or 64? Then I’ll ask if they really need $8,000 in spending. Usually there’s a range they’re willing to work within.”

Besides cutting back on spending, the easiest way to reach these goals is to have money taken out of your paycheck or checking account and deposit it automatically into your company’s 401(k), a Roth IRA or an FDIC-insured high yield deposit account.

Where You Should Put Your Retirement Funds

While you’ll probably want to have at least some of your money in the stock market, you may want to put a large portion in FDIC-insured assets at a bank, such as CDs, money market accounts and IRAs. These are extremely safe investments that generally offer good returns.

Currently, the FDIC insures up to $250,000 per person, per bank, per deposit category. (But certain assets held in an IRA will be insured up to $500,000 per person.) For current insurance limits on savings accounts, money market accounts, IRAs and CDs, check out www.fdic.gov.

If you’re looking to add CDs to your portfolio, there are a wide variety of term lengths, from three months to 10 years. With a fixed-rate CD, you won’t have to worry about how your investment is performing.

Life Changes May Reset Your Long Term Retirement Goals

The global financial crisis, coupled with the reality of a recession and brutal bear market, has wreaked havoc on the retirement savings of millions of Americans. Add this to the fact that each year over the next twenty-five years, a growing portion of America’s population will reach retirement age—with fewer resources for them to draw from—and you can see the potential problem we face.  You may find that the amount of money you need for retirement has increased and so you may need to find a way to earn more income or delay your retirement until you’re eligible for other benefits, such as Medicare. Don’t worry—you’ll have plenty of company.

“People are working longer,” Kessel says, “but not just for financial reasons. We’ve seen that people get depressed if they don’t contribute to society in some way. The best thing to do is find a post-retirement career—a job that will make you happy even into your 80′s—be it selling real estate part-time or working at your local beach club.”

How Costly 401(k) and IRA Withdrawals Can Derail Your Plans is a post from: RateNerd - unadvertised deals from banks.

                          

Get $50 when you open a new account, and $50 more in a year.

U.S. Bank’s S.T.A.R.T. account makes it simple for you to “start” a savings plan, stay on track to meet your savings goals and earn rewards along the way.

To earn a $50 U.S. Bank Rewards Visa Card, just keep a balance of $1,000 or more for a year and earn another $50 Rewards Card.  All you need to do is set up recurring transfers from your U.S. Bank Package Checking account into your U.S. Bank Package Money Market Savings account. You can save a little every week, with every paycheck, or with every credit or check card purchase. And without even thinking, you can save $1,000!

How To Earn $100 from U.S. Bank

• Step 1 - Visit a participating branch, call toll-free at 800-593-6087 or enroll now and choose the U.S. Bank Package that works best for you.
• Step 2 - Enroll in S.T.A.R.T. and create your savings plan. Set up one or more of the following qualifying transfer options from your Package Checking account to your Package Money Market Savings account:

• • Transfer an amount you choose on a specific day of the month, OR
  • Transfer an amount you choose for each U.S. Bank Check Card purchase, OR
  • Transfer an amount you choose for each U.S. Bank Credit Card purchase.

When your savings balance reaches $1,000, you get a $50 U.S. Bank Rewards Visa® Card.

Maintain a balance of $1,000 or more in your account for one year, and earn another $50 U.S. Bank Rewards Visa Card.  Click here for more on this U.S. Bank promotion.

About U.S. Bancorp

U.S. Bancorp, with $291 billion in assets as of Sept. 30, 2010, is the parent company of U.S. Bank, the fifth-largest commercial bank in the United States. The company operates 3,013 banking offices in 24 states and 5,323 ATMs and provides a comprehensive line of banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.

$100 Savings Account Bonus With U.S. Bank – Daily Deal is a post from: RateNerd - unadvertised deals from banks.

                          

Saving for retirement is more important than ever, especially amid the current economic crisis.

Opening an Individual Retirement Account (IRA) or contributing the maximum amount allowed to an existing IRA account is vital to your future financial well-being.

“Think of it as retirement insurance,” says Jennifer Hartman, CFP, a financial planner for Greenleaf Financial Group in Los Angeles. “We have every other type of insurance—life, health, car—we should also have insurance for our future.”

Hartman suggests everyone begin contributing to an IRA as early as possible throughout their years of employment.

Financial planners also emphasize that an optimal savings plan would be to add money each year to an IRA as well as contribute funds designated to a company-sponsored plan such as a 401(k) or 403(b).

The two go hand-in-hand, says Russ Francis, CFP, a financial planner with Portland Financial Advisors in Beaverton, OR.

“I advise my clients to maximize their contributions to their Roth-because of the tax-free nature of the plan—then put at least enough into their company plan to get any matching funds,” Francis says. “That’s an important strategy.”

Traditional IRA Accounts

A traditional IRA is a tax-deferred account in which you can take pretax earnings and invest in certificates of deposit (CDs), stocks, mutual funds or money market accounts (MMAs). Because your contributions to a traditional IRA are pretax, they reduce your overall taxable income. That means you pay less taxes today. Once you’re at least 59½, you’ll be able to withdraw funds from your traditional IRA. If you withdraw funds before you’ve reached 59½, you may be subject to a 10 percent tax penalty on the withdrawn amount.

Depending on how much you earn and whether you’re covered by a traditional retirement plan at work, such as a 401(k) plan, you can put away up to $5,000 into a traditional IRA (up to $6,000 if you’re age 50 or older).

If you are under the age of 70½, and your 2009 adjusted gross income (AGI) is less than $65,000 if you’re single (or $109,000 if you’re married and filing jointly), you can make a tax-deductible contribution to a traditional IRA.

If your employer does not offer a traditional IRA, you may make a contribution of up to $5,000 for the 2009 tax year (up to $6,000 if you’re age 50 or older) no matter how much income you earn.

Roth IRA Accounts

A Roth IRA is a retirement account funded with after-tax income. For instance, as long as your income in 2009 was less than $120,000 as an individual (or less than $176,000 if you’re married and filing jointly), you can contribute up to $5,000 to a Roth IRA (up to $6,000 if you’re age 50 or over). If you’re married and your income is below the $176,000 threshold, you and your spouse are each entitled to open up a Roth IRA and make the maximum allowable contributions.

The big benefit to a Roth IRA is that under current IRS rules, your contributions grow tax-free forever.

You may only contribute to a Roth IRA if you have earned income, as opposed to income from dividends, royalties or capital gains. But anyone can open up a Roth IRA as long as you earn less than the IRS-specified amounts.

You can withdraw your contributions to a Roth IRA at any time. To withdraw earnings tax-free, you must be at least 59½ and have held the account for at least five years. If you withdraw funds before you’re 59½, and they are not a qualified distribution, your earnings may be subject to income tax and a 10 percent penalty.

Compare Roth IRA Accounts vs. Traditional IRA Accounts

If you can’t afford to contribute to a Roth IRA and a traditional IRA at the same time, you should think about where your retirement income is going to come from and which type of account will serve you better over the long haul.

Many financial planners counsel their clients to open up a Roth IRA, especially if they expect clients to have the same tax rate after they retire or when they are ready to make withdrawals. Roth IRAs give you flexibility to fund your retirement without triggering an additional tax bill.

“The Roth is the best option out there right now,” Francis adds. “The only downside would be if you were going to be in a lower tax bracket when you withdraw [money]. Most people tend to have more money in the future. I don’t see where lower income taxes would be the case, unless the laws are changed.”

Roth IRA Conversions

If you earn less than $100,000 per year, current tax law allows you to convert a traditional IRA to a Roth IRA. While you’ll have to pay income tax when you convert your tax-deductible, tax-deferred traditional IRA to a Roth IRA, the assets in your new Roth IRA will then grow tax-free forever.

“This is a great conversion opportunity because the markets have fallen so much,” Francis says. “If you can afford the tax bite now, why not let the money grow in a tax-free vehicle in the future?”

In 2010, the income limits on traditional IRA to Roth IRA conversions will be eliminated, allowing anyone to convert their IRA funds to a Roth IRA.

IRA CD Rates

CD Rates for IRA’s tend to be higher than for traditional CD’s.

In reality, IRA CDs are just plain old CDs. Financial institutions might label them as “IRA CDs”, but they have the same characteristics as other CDs. You agree to let the financial institution use your money however it would like for a set period of time. Early withdrawal penalties apply. (With CDs held in your IRA taking that money out of your IRA as part of your withdrawal can trigger penalties related to your retirement account.) Because the institution is using your money, you are paid interest. There are CDs with variable rates, but most CDs come with fixed yields.

Some financial institutions do try to make IRA CDs more attractive by offering higher yields, especially since many CDs marketed as good choices for an IRA have longer terms, usually between three and seven years. There are IRA CDs that have terms as long as 10 years. Many minimum deposits vary from $500 to $10,000, although you can almost always find CDs that allow you to put in more or less. As with any other CD, you are more likely to get higher yields with an IRA CD that has a longer term and a higher deposit.  Compare IRA CD Rates from Discover Bank and you will see the yields are higher – giving you an opportunity to earn even more money for your retirement.

How to Make Your IRA Contribution Count is a post from: RateNerd - unadvertised deals from banks.

                          

Join WTDirect now and earn a cash bonus when you open an account and maintain a balance of $10,000 or more.

Do the math on this deal – if you annualize the return, the $100 bonus on a $10,000 account is worth 4.00% APY, plus the 1.21% APY the account was already paying.

This bank deal is pretty simple. Here’s how it works:

• Open and fund your savings account with $10,000 or more by October 31st
• Maintain your balance for three months
• Receive a cash bonus directly in your WTDirect account
  • $10,000 balance receives  $100 Bonus
  • $25,000 balance receives $150 Bonus
  • $50,000 balance receives $300 Bonus

Need a high yield savings account AND personal service? WTDirect offers both. Open a WTDirect Savings account today.

This offer is available to new WTDirect clients only. First account holder must NOT have held a WTDirect account in the past 12 months. WTDirect account must be opened and funded via electronic (ACH) transfer received by 10/31/10. Eligibility for bonus is based upon maintaining a minimum daily balance of $10,000 during the promotional period of 10/31/10 – 1/31/11. Bonuses will be paid approximately 2 weeks after the end of the promotional period to clients whose accounts remain open and in good standing.

There is no minimum deposit required to open the account. For the first 60 days from the date the account is opened, regardless of the account balance, the account will earn 1.21% APY . After the first 60 days, the APY for the account will have two tiers: (a) a higher APY for accounts with balances of $10,000 or more (currently 1.21% APY); and (b) a lower APY for accounts with balances of less than $10,000 (currently 0.15% APY).

Click here for the WT Direct promo page for this deal.

About WT Direct

WTDirect is a division of Wilmington Trust FSB, Baltimore, Maryland. Member FDIC.  WTDirect’s signature product, an online high-yield savings account, features a consistently high interest rate, personalized service with “human touch,” and greater protection when it comes to online saving. WTDirect and Wilmington Trust FSB are part of the Wilmington Trust family of companies, which is one of the largest personal trust providers in the United States and includes the leading retail and commercial bank in Delaware, founded in 1903. For more information, call 1-800-WTDIRECT.

Savings Account Deposit Bonus Up To $300 – Daily Deal is a post from: RateNerd - unadvertised deals from banks.

                          

If you’re tired of getting nickeled and dimed by your bank, it’s time to switch.

Irritation with unnecessary fees is the No. 1 reason consumers switch banks, according to a recent survey by Javelin Strategy and Research.

“Stopping useless fees forever is a smart way to make your money go further,” says J.J. Montanaro, a certified financial planner with USAA. “The savings can add up to hundreds of dollars a year, which can be used to pay your bills instead of your bank.”

To get a grip on what fees your bank is charging, Montanaro suggests carefully reviewing your most recent checking and savings account statement.

If you’re paying these five fees, it’s time to look for a bank that doesn’t charge them.

1. Overdraft fees

While the new overdraft rules that went into effect on July 1 requires financial institutions to notify customers of their options to opt-in to overdraft fees, finding a bank that chooses to opt-out of the “opt-in” legislation can save you cash. Some banks – like USAA Federal Savings Bank – have eliminated overdraft fees on ATM and debit transactions entirely.

However, if you’ve decided to opt-in to overdraft fees, you’re not out of luck. Many banks provide overdraft protection – allowing purchases exceeding your account balance to be pulled from your savings account or put on your credit card. Check with your bank to see if this service is free. If so you’ll avoid overdrafts and avoid having your purchase declined.

If you choose a credit card as your back-up payment option, be sure to pay off your balance immediately to avoid paying interest, Montanaro adds.

2. ATM fees

If the ATM you use is not affiliated with your bank, that ATM’s bank may charge you for ATM/debit card withdrawals or other transactions. While a $1.50 to $3 ATM fees may seem nominal when you really need to access your cash, they can add up quickly.

Some banks allow you to use any ATM without charging fees. If your bank doesn’t, plan ahead and only withdraw money from ATMs affiliated with your bank. Or you could take advantage of fee-free, cash-back options now offered at some local grocery or convenience store chains when making a purchase.

Better yet, switch to a bank that reimburses you those fees. For example, USAA rebates up to $15 a month in ATM fees – a perk that could add up to $180 a year in savings.  Many of the best checking accounts featured on RateNerd.com refund ATM fees each month.

3. Check fees

Cut fees by quitting checks, or at least using less of them. Unless your bank offers free checks, switch to paying bills electronically. This usually fee-free service allows you to pay bills anytime and anywhere you have access to a secure Internet connection.  Paying electronically can also save on postage – if you have 15 bills a month that can save you up to $80 a year.

4. Minimum balance fees

Your bank may expect you to keep a minimum balance in your account and charge you a fee if you slip below. You can side-step these fees by carefully matching your situation with the account requirements. For instance, look for an account that waives the fee for direct deposit of your paycheck, or find an account with no minimum balance requirement.

“In addition, take advantage of helpful tools such as free online financial management tools, account alerts sent via e-mail or text messages that are triggered when your account runs low,” Montanaro says.

5. Fine print fees

Are you charged a fee for monthly account maintenance, or does that bill you receive in the mail each month cost extra? “It pays to sweat the small stuff and fully understand what your bank is charging you,” Montanaro says. “Instead of paying your bank to send you a paper bill each month, see if you can sign up to receive it electronically for free. This option will save you money and can make it easier to keep track of your statements.”

Montanaro adds that investing time to manage banking needs and find a bank that doesn’t overwhelm you with fees can add up to real savings of potentially hundreds of dollars each year. “In times like these, it’s important to make every dollar count and ensure it’s working for you – not your bank.”

– Article Courtesy of ARAcontent

Five Bank Fees You Should Never Pay is a post from: RateNerd - unadvertised deals from banks.

                          

Make sure you understand the basics of CD and Money Market Accounts.

Lately, anyone who’s been watching the stock market or reading the headlines may be asking themselves, “So where’s the safest place for me to save my money?”

Stashing your cash in your mattress may seem like the simplest and safest solution. But the money in your mattress isn’t protected by the Federal Deposit Insurance Corporation (FDIC) the way that bank deposit accounts are.

FDIC-insured bank deposit accounts are a safe way to protect your assets-while you grow your savings. And there are some great rates and high-yield accounts out there to help maximize your savings.

Whether your financial strategy is primarily a savings account you opened in high school-or you’re rebalancing a high-risk portfolio-FDIC insured bank deposit accounts can be an important part of your overall financial savings planning. What types of bank accounts are FDIC insured?

There are 4 types of bank deposit accounts.

If you’re looking for low risk and high yield investments, checking, savings, Money market deposit accounts and CDs are popular types of FDIC-insured bank deposit accounts.

These bank deposit accounts are insured for up to $250,000 for each depositor per institution.

Non-FDIC insured investment accounts include mutual funds, annuities, life insurance policies, stocks and bonds. These investments have generally higher risk than traditional deposit products-which means you could lose some of the money you invested or not gain as much profit as you expected, states the FDIC.

First, start with a goal in mind with an investment strategy

It’s important to have a clear understanding of what you are saving for. The shorter your investment horizon, the more liquid the investment should be.

Will you need ready access to your funds and move funds quickly? Then a shorter term CD may suit you best. Consider a 6-month CD or 12-month bank CD that you can quickly convert to cash.

If you’re saving for a car or that dream vacation, you may want to leave these funds untouched for a few years. In that case, putting your money in a 2-year certificate of deposit makes sense.

If you’re able to lock in your money for a longer time-a 5-year bank CD with a higher yield and longer term may suit you best.

If your goal is to save for retirement consider a longer term CD offering the highest interest rate, such as a 7-year CD or a 10-year IRA retirement CD. You can find high yield investments for both Roth IRA CDs as well as Traditional IRA CDs.  You can check CD rates from Discover Bank here, or check the CD rate tables at RateNerd.com.

Your investment strategy will depend on your goal, the length of time you hold your investments and where you put your money. Once you are clear on what you’re saving for and how soon you will need your money, you’ll have a better idea of what types of investments are best for you.

Figure out how much you need to save to reach your goal and how much you can save each month toward that amount. “Laddering” your CDs can help you optimize both cash liquidity and interest. For example, you may consider putting part of your funds in a 6-month CD, another amount in 12-month CD, a 2-year CD, 3-year CD, 4-year CD and finally a 5-year CD. In effect, laddering your investment from short to long term. As time goes by and your CDs mature, you then reinvest them in a longer-term, high yield CD.

Understand the basics of Money Market Accounts – Higher rates for higher balances

Money Market Accounts are great ways to invest money for the short-term. If you need a quick turnaround, these are stable ways to secure a return on your investment.

Money Market Accounts (not to be confused with money market funds) are simple, flexible and secure. Most money market accounts provide higher interest rates than a savings account-with greater access to your funds than a CD.

Money Market Accounts will earn about twice the interest of a savings account, according to Bankrate.com4. A minimum balance is usually required, which may be more than a savings account requires.

A Money Market Account works like a checking account with a variable rate. When you need cash, you can quickly transfer funds without penalty. You can access your money using a bank debit card, check, wire transfer, online transfer of funds-and even arrange free bill payment from your money market account.

You can deposit money as you’re able and can also set up automatic transfers to your money market account from a checking or savings account.

If you only need to dip into your account a few times a month, a Money Market Account with a competitive rate may be the best investment for you.

Money Market Accounts are a simple way to save. Best of all, there’s no market risk-the money you deposit will never decrease in value.

Know how Certificate of Deposits (CDs) work – Rates increase as the term length increases

A CD is a low-risk bank deposit account with fixed interest rates that increase the longer the term of the CD. You purchase a CD for a specified length of time-from three months to several years-and the bank guarantees you a fixed return. These returns are usually substantially more than what you could earn with a checking or savings account.

The bank pays you interest periodically and when you redeem your CD you receive your principal plus accrued interest. If you need a dependable return on your money, but don’t need to tap into your money for a specific period of time, consider a certificate of deposit.

Make sure you understand the terms-and the penalties for withdrawing your money before the CD maturity date.

Look for the best bank ratings and find a safe haven for your money

In addition to looking at the low risk and high returns of bank deposit accounts, check out the bank rating. Moody’s, S&P and Bankrate.com offer ratings of a bank’s financial strength and performance. Look for the best bank rating available (AAA rated or 5 star), which indicates a strong bank that’s a safe haven for your money.

Now that you have a basic understanding of two types of FDIC-insured bank deposit accounts, you’re ready to put your money to work for you in a high yield deposit account with a top rated bank.

Money Market and CD bank deposit accounts are a very simple-and very secure way-to save. Be sure you know the different types of accounts available, the pros and cons of each type, how easily you can access your funds in case you have cash flow problems (the liquidity), and the terms and fees involved.

Some other questions to consider when shopping for Money Market or CD accounts:

• What types of bank deposits accounts are offered?
• Where can I get the best rates?
• How long do I want to invest this money?
• What are the transaction limits?
• When is the interest credited?
• What are the terms?
• What services are offered?
• What is the minimum investment/balance?
• How easy is it for me to bank there?

TIP: Most people who open a financial account online are having that experience for the very first time. If you’re just starting out, get information on how to budget in tough times and find helpful tips on saving for today, tomorrow and beyond.

TIP: FDIC-insured deposit accounts include: Checking and Money Market Accounts, savings accounts including passbook accounts and Certificates of Deposit (CDs).

Non FDIC insured investments include mutual funds (stock, bond or money market mutual funds), annuities, stocks, bonds and Treasury securities. Source: FDIC.gov

How To Use CD’s and Money Market Accounts Now is a post from: RateNerd - unadvertised deals from banks.