Money,Mortgages,Stocks,Taxes,Debt

How To Respond To Unauthorized Transactions In Your Bank Account

Erik Folgate — Thu, 02 Sep 2010 12:00:23 +0000

This past weekend, for the first time in my adult life, I was the victim of identity theft. We were talking into the movie theater about to sit down for a movie, and I got a phone call from a weird phone number. I listened to the message as we sat down in our seats and it was Bank of America saying there was suspicious activity in my bank account. My first reaction was that it was a scam, some kind of phishing attempt to get me to call them back and give them personal information acting like they were Bank of America. I have an iPhone, so I logged into my online banking from the BOA iPhone app, and sure enough, there were two $1,000 purchases and about a dozen smaller charges. My heart sank to my stomach. I couldn’t freakin’ believe it. Someone hijacked my account or one of our debit card numbers and was buying crap online. I couldn’t sit through that movie knowing what I now knew, so we left the theater, got rain check passes to see the movie another time, and I quickly called Bank of America. Call The Bank As Soon As Possible The theft occurred on Saturday, so Bank of America was on top of their game. I had just checked my account online on Friday, but if they hadn’t called me, I probably wouldn’t have checked it again until Monday or Tuesday. After doing some research, I’ve found that the quicker you report unauthorized transactions, the less suspicious the bank is that it was actually you that made the purchases. There may be a specific time period that you have to claim unauthorized transactions, but call and notify them ASAP! Speak With The Bank’s Fraud Division All large banks and even regional banks/credit unions more than likely have a specific identity theft/fraud division. Those are the people you need to talk to. Make sure you write down all of the purchases that are unauthorized and the amounts, because they’ll ask you to name all of the ones that were unauthorized. They’ll start claims for all of those charges to be reversed, but for Bank of America, they couldn’t begin the claim process until those charges had cleared out of my account. The only way they can reverse them before they clear is by contacting the merchant to try to get them to stop the payment from going through. The merchant in this case was some shady looking website from Germany. It was probably run by the thieves. Don’t Forget To Fill Out The Affidavits and Send Back Certified Mail I was so flipping mad, that I put the obligatory rant on my Facebook status, and not surprisingly, a lot of people in my friend circle had this happen to them in the past. Once Bank of America puts the money back in your account, it’s a “temporary credit”. This temporary credit is made permanent ONLY when you fill out the affidavit that they send you and you send it back AND they receive it. I had a friend who sent the affidavit back to Bank of America, but it got lost in the mess of Bank of America stuff, and they didn’t get any kind of tracking or signature confirmation on the mail, so they had no way of proving they sent it back within the specified time period, so Bank of America took the “temporary credit” back out of their account, and they were out $200. Some Quick Tips About Unauthorized Purchases If you truly didn’t authorize the purchase with your signature or by entering your pin number, you have ZERO liability for those purchases, no matter what bank it is or what state you’re in. That’s federal law. Don’t let anyone tell you otherwise. The way that banks legally pin you down is by the affidavit you sign. If, for some reason, they find out you were lying and you signed that form, you could get in a lot of criminal trouble. ALWAYS send back the affidavit via certified mail with return receipt requested. Immediately file a fraud alert with all three credit reporting agencies. You can do it on all three of their websites. The agencies are Equifax, Transunion, and Experian . This will alert anyone who runs your credit that they need to verify your identity before loaning you money or doing any kind of financial transaction using your social security number. If all they did was take your debit card number, you can usually keep your bank account. The bank will know if the purchases came from a debit card or drafted from the bank account number and routing number. What Happened Even though I’m not a big fan of mega banks, we have Bank of America because I’ve had it for so long, and there are so many bills and direct deposits hooked up to it, that it’d be a royal pain to switch to another account. I think it was to my advantage in this instance because BOA deals with so much fraud that they were on top of this very quickly. It happened on Saturday, I filed the claims on Saturday, the transactions cleared on Tuesday, and the money was back in our accounts on Wednesday, so that’s a pretty good turn around time. We were only without the money for four days. I have no clue how they got my debit card number. I am going to do a follow up post about how to protect your debit card number from getting stolen. My conspiracy theory is that it was a credit card skimmer , like someone got it from a gas pump or a server at a restaurant wrote it down and passed it off to someone who sold it to the black market. Who knows, but I’m kind of glad that it happened, because it’ll make me a lot more protective of my debit card, how I use it, and where it’s being used. Related Posts: Watch Out For Sneaky Overdraft and Bank Fees How To Avoid Banking Overdraft Fees Is It Time To Pull Your Money Out of Bank Of America? A Envelope System That Will Help Keep You From Overdrafting Your Checking Account debunking the claim that debit cards cannot be used everywhere Protect Yourself From Identity Theft – Use Your Debit Card How To Respond To Unauthorized Transactions In Your Bank Account is a post from: Money Crashers

FNBO Direct: A One Stop Shop For Banking

David Bakke — Wed, 01 Sep 2010 22:05:58 +0000

I have reviewed quite a few banking sites in the recent past and the first thing that struck me about FNBO Direct is that it is about as close to a “one stop shop” for banking that I’ve been able to find. One of their most attractive feature is their 1.1% APR for their online savings account. While this isn’t anything drastically out of the ordinary, you need to also consider all the other great services that they have to offer. The Basics First, let’s get through the basics. FNBO Direct offers an online savings account which can earn up to 1.1% APR. The rate is a variable one of sorts, and although they say there is no minimum for your account, you do need to carry a minimum of $500 to get this rate. And you do need a minimum of $500 to open the account. They offer a variety of companion accounts as well, such as checking and others. They also offer a BillPay service. Additionally, they offer certificates of deposit and even have a credit card with a pretty decent “teaser” rewards program for the first 12 billing cycles. You can double your rewards in the first year. Calculators FNBO Direct offers a drop down menu which includes a variety of “calculators” which can help you determine anything from how important an interest rate is on a new credit card to helping you decide whether to buy a new or used vehicle. Savings Finder They offer another very appealing concept, based on the “pay yourself first” premise. They call it a Savings Finder. Basically, it outlines for you the importance of paying yourself first. I love this feature of FNBO Direct. Basically, you can set up a savings account with them. Then, you can also set up a BillPay account or a checking account. You would then set up a direct deposit to transfer your income into the savings account. Then, FNBO takes care of transferring only the amount you need to pay your bills each month to either your BillPay or checking account. By doing so, this will maximize the interest you earn on your “leftover” money in your savings account. I can certainly attest to the fact of leaving some money on the table in this respect. The account I pay my bills out of earns no interest, and I could certainly make some extra change each month if I had a setup like this. Popmoney They also offer an interesting service called “Popmoney” that I can best describe as a mini-PayPal. You can send money to anybody with an email address, mobile number, or bank account directly from your FNBO accounts. It is a great service; however, keep in mind that fees do apply. FNBO’s History In case you’ve never heard of FNBO Direct, it stands for First National Bank Omaha. They are a subsidiary of First National of Nebraska. They’ve been around for about 150 years, and according to their site they’re the largest privately owned banking company in the United States. Fees, Oh Those Pesky Fees FNBO Direct has the same cryptic phrase as many other websites do now; they claim to have no “monthly fees.” Of course, they do have a variety of non-monthly ones. Honestly, when I dig into the fine print of these websites as I am researching them, it is almost comical the way they disguise some of their fees and how hard it is to find them. This is not directed squarely at FNBO Direct, but more the banking industry in general. Regardless, FNBO does have its share of fees, and they make it as difficult as other places to even find them. My eyes hurt by the time I was done digging through all of their fine print. They have the typical inactivity fee that you find everywhere although they choose to call it a “dormant account fee.” They also hit you with $25 the first month your account is dormant and $5 for each additional month. I guess this is the latest twist in the “fees” game. They also have the standard fees for using “foreign” ATMs as well. Keep in mind that “foreign” doesn’t mean out of the country; it means any machine without their logo on it. They have fees for different types of domestic wire transfers as well. Popmoney Fees Also, as stated, keep in mind that fees do apply for their Popmoney services. It is $2 for standard deliveries and $10 for next day deliveries. This may be worth it though because keep in mind that in most cases, either the sender or receiver is charged money when using PayPal. If you use Popmoney in place of PayPal in certain instances, you could save yourself some money. The funniest fee that I’ve found in awhile is one I found at FNBO called a Copy Request fee. It is $5 per request. All I can say is that I’d love to see the copier they use or the paper those copies come out on. Must be some pretty expensive stuff! A lot of these fees are probably ones you’ll never run into, but I still think it’s worth mentioning upfront. Transfer Limitations FNBO Direct offers a variety of accounts, but keep in mind that the number of transfers you are granted for each billing cycle is limited. I believe they are limited to six per month. It doesn’t say there is a fee if you go over that, just a limit. So I’d imagine if you try to do more than six, then the transfer simply isn’t processed. Their Blog They don’t really have a blog per se, but rather a quarterly newsletter. And it doesn’t just contain bank-related articles, but also a variety of savings topics, security advice, and college savings ideas. Pretty good stuff to read. The Last Word I think that FNBO Direct has some great attributes and is well worth checking out if you are in need of an online savings account. They truly do offer that, and a whole lot more. Their rate of 1.1% APR is pretty competitive compared to other online savings accounts, but where they really set themselves apart is all the other awesome services they offer. Their “Pay Yourself First” service is truly directed at helping their customers, and it crystallizes a concept that should be key to any long-term savings plan—paying yourself first. They also offer checking and BillPay accounts, so you can really just about do it all here on one site. Their Popmoney service is great for those that need to make money transfers. And the fees associated with it may actually be a little less than PayPal in some instances, so there are some possible savings and convenience here as well. They offer customer service via email or by phone, 24/7, which is another nice touch. All in all, I’d say give them a shot. Read the fine print as with anything, but they sure can offer you a lot of services all in one place. Have you had any experience with FNBO Direct? Feel free to share below. Related Posts: ING Direct Review: Online Banking Leader ($50 Bonus Offer) Updated Online Savings Account Rates Say Goodbye To Free Checking Accounts The Way2Save Savings Plan By Wachovia Organize Your Savings With The ING Direct Orange Savings Account WTDirect Review – Designed For Savers in Control FNBO Direct: A One Stop Shop For Banking is a post from: Money Crashers

See the original post here:
FNBO Direct: A One Stop Shop For Banking

How To Save Money At The Dentist’s Office

David Bakke — Wed, 01 Sep 2010 22:03:12 +0000

I recently had a dentist’s appointment to have my teeth cleaned. For the most part, I am terrible with keeping up with regular dentist appointments. This was the first time I had been in a few years. Regardless, this latest trip helped me to realize that, yes, you can save money at the dentist’s office. Of course, the first line of defense against saving money on dental visits is to take great care of your teeth. But beyond that, here are 5 more great tips: 1. Choose the Right One If you don’t already have a regular dentist, I would not just pick one out of the phone book. I actually picked out three that accepted my insurance carrier, and called their offices. I requested price lists from them. Surprisingly, the prices at all three had some differences. I also found out that you can request a “usual, customary and reasonable” list (USR) from your insurance provider. Policies with a USR clause will not pay more than what is on their sheet. So it’s a great idea to compare the USR list with the dentist’s pricing list. 2. Go! The first thing that I realized is that I am wasting money by not going to the dentist at least once per year. Wasting money? How could that be? Well, I think I pay roughly $12 per month for my dental insurance. Cleanings are free. Therefore I am leaving money on the table by not going to the dentist at least once a year to get my “free” cleanings. I am spending about $150 on dental insurance whether I go or not. This motivated me to schedule at the very least, annual visits. Even if you don’t have insurance, I’d still suggest at least going for at least 1 visit per year (if not two) to maintain your teeth. The last thing you want is decaying teeth and gums once you get a bit older. I promise you you’ll regret it! 3. Know Your Policy Second, I would get a pretty firm grip on what my policy does and does not cover before going. It didn’t happen with me, but last year, my wife went to the dentist and had about $1000 worth of work done. As it turned out, over $700 of it was uncovered. Know your policy . 4. Beware of the Sales Pitch The point of my dentist appointment was to have my teeth cleaned and nothing more. Of course, having not gone in the past few years, it would not have surprised me to hear about a cavity or two. I do take good care of my teeth, but not great care. While I did not hear about any cavities, I did hear about a host of other things that I supposedly “needed” done. This guy came back into the office like someone who had just done a diagnostic on a car. He started in about things like caps and crowns. He then talked about whitening procedures and something called a “veneer’ which I still never really understood except for that it sound like a paint job for your teeth. He even mentioned something about having my teeth straightened. I’ve had my same teeth my whole life and they’ve always looked pretty straight to me! 5. Tread Lightly, but Stand Your Ground I want to be very careful before I say what I am about to say. I am by no means suggesting that you should second guess your dentist. However, had I agreed to all of the procedures that he recommended, it would have cost me over $2000. One thing we did talk about before I left was how much of this stuff was strictly cosmetic and how much would have a direct effect on my long-term dental health. After a little fast-talking, it seemed to me that most if not all of it was cosmetic in nature even though he tried to present the procedures as being fully necessary. If your dentist tells you that you need to have something done and you are unsure, get a second opinion. As I said, I wouldn’t just blow off your dentists’ recommendations, but at least take the time to question them. Maybe I just had the luck of visiting a dentist who was out to sell me stuff I didn’t need. I am by no means saying that this is the norm. What I am saying is that by doing a little research on the front end and being cautious during your visit, you could potentially save yourself a significant amount of money. Anybody have a good or bad experience at the dentist office recently? I’d love to hear some stories! (photo credit: emrank ) Related Posts: Ways to Spend Less on Dental Costs The Danger Of Discount Cards Sticking to a Budget is Harder Than I Thought How I Pay $85 A Month For My Health Insurance Policy Your Guide to Health Insurance Are You Paying Too Much For Life Insurance? How To Save Money At The Dentist’s Office is a post from: Money Crashers

Read the original here:
How To Save Money At The Dentist’s Office

Groupon Review – The Best Daily Deals In Your City

Kira Botkin — Tue, 31 Aug 2010 17:53:37 +0000

If you’re a deal hunter, you’ll love Groupon . Each day, Groupon, which is a free service, offers a different deal on something fun to do, good food, a new experience, or something you’ve always wanted to try. It’s basically a gift certificate at a discount. Groupon has coupons available in dozens of metropolitan areas including multiple ares in some larger cities like Los Angeles or Washington, DC. It is also available in several Canadian cities and many countries outside the United States as it continues to expand and gain a huge following. How Groupon Works When you sign up for Groupon , each day they’ll email you the daily deal. It outlines the terms of the deal and what the Groupon is good for. For example, you might pay $15 and receive a $30 gift certificate at a local store. However, you only get your Groupon if a certain number of other people also sign up (hence, the “group” part). It will tell you if the deal has “tipped,” meaning if enough people have signed up. Once the required number of people have bought the day’s Groupon, everyone who has already bought one will receive it, and after that anyone else who purchases one will get their Groupon immediately. The Groupon almost ways “tips” in my experience, and if it doesn’t, you don’t get a charged a penny. Advantages of Groupon: You can get some fantastic deals on this site that you couldn’t get anywhere else. Recent deals included: $50 for $100 worth of apparel at an upscale clothing store $25 for 30 days of unlimited tanning plus two spray tans ($100 value) $50 for a catered buffet for a party of 10 people $10 for $25 worth of food and drinks at a nice family restaurant $99 for an introductory flight lesson ($225 value) $40 for $80 worth of services at a high end salon These are not deals to sneeze at! Groupons generally stay valid for a long time (the shortest I have seen is three months, and it’s frequently a year) and they can be given as gifts by email or by printing it out. On many deals, you can purchase multiple Groupons to use over time or sometimes all at once! Groupons only sell out in a given day if the participant set a maximum number of Groupons and that max has reached – once the deal has ‘tipped’ everyone can buy one for the rest of the day up until the max. As I mentioned, it is pretty rare that the Groupon does NOT ‘tip’ – I have never seen it in my city – so you’re almost certain to get it even if you buy early in the morning. The sale of each Groupon runs for 24 hours and stops at midnight except for certain weekend deals which are available Friday morning to Sunday night. Deals featured on Groupon are also generally things you’d like to do if you could afford it – such as nice restaurants, upscale salons, teeth whitening, car detailing, artisan foods, or great experiences like golf, skydiving, or dance classes. If you think of something you’d like to do, you can keep an eye out and pounce on it if it arrives. Even better, if you live close to multiple cities or visit another city frequently, you can subscribe to multiple Groupon city alerts. Disadvantages of Groupon You have literally no idea whether the deals are going to be useful to you or not. I go weeks without seeing anything good, and then buy three Groupons in one week. It’s very random. Some deals also look good on the surface but have restrictions that mean I can’t use them for what I want. With this said, the only inconvenience of being a Groupon member is getting an email every day. There is no fee or anything involved. Just say diligent and read the fine print and you are sure to find some great deals. Businesses who sell Groupons are frequently swamped right after the deal tips and people start getting their Groupons. On one deal I saw recently, people were complaining that they couldn’t get through on the provided phone number – the owner came on to the questions section to let people know that their phones were ringing constantly all day, and asked that people leave a message and they would try to get to everyone within an hour. A local upscale grocery by my house who had a Groupon for sale months ago still has a Groupon checkout line. So if you see something that you want to do this weekend, you might be out of luck unless you’re the first one on it as soon as the Groupon is announced in the morning. Deals are sometimes good by percentage but not by dollar. I really enjoy eating out but have a near allergy to doing so at full price, so I snap up Groupons to good restaurants. Unfortunately, some places offer a deal like $5 for a $10 certificate – which is 50% off, true, but only $5 off in total, which makes it less worthwhile than perhaps $15 off $30. Check the fine print. Many Groupons can only be used for specific services – for instance, the Groupon I bought for car detailing can only be used on the “silver” package, and you can’t apply its worth towards a higher cost package. Others on the Groupon message board have shared experiences of being told something would cost more if they were using a Groupon, or of being shut out due to unexpectedly high demand. If you know what you want to use the Groupon for and it isn’t clear whether that’s okay, call the location and confirm before purchasing. Groupon does have a great customer service team who will give refunds in circumstances like that if you are unable to use it. Most Groupons are location-specific. Groupon tends to run items for local businesses, so you won’t be able to use it anywhere but the exact location that they specify. Even if it’s for a restaurant or shop that has locations elsewhere, you are unlikely to be able to use it there. Would I Use It? Absolutely. I have already purchased a number of Groupons for local restaurants, stores, and service providers. I like to keep a mental list going of things I want to do but don’t want to pay full price for, so I can keep an eye out and jump on the opportunity when it arrives. It’s also good for gifts; since some Groupons are good for a full year, you can buy many months ahead of someone’s birthday or Christmas and the recipient still has plenty of time to redeem it. The caveats are that you shouldn’t buy anything you aren’t certain you’ll use and to always read the whole description. Overall, Groupon is an unbelievable way to participate in those activities you never thought you had the money for. It’s a great way to experience some fun and new adventures and tasting some delicious food and drinks. Do you have any experiences, good or bad, with Groupon? I would love to get your feedback on this service! I’ve got a 60% off appointment with a salon, so I’ll catch you later! Happy hunting! Related Posts: Get a $10 Flight On SkyBus.com Share Your Black Friday Experience How To Save Money In the Big City Craigslist Will Soon Replace Ebay As The New Website To Find a Good Deal One Big Way to Save Money On Valentine’s Day How to Travel Cheap On Bus and Train Groupon Review – The Best Daily Deals In Your City is a post from: Money Crashers

Original post:
Groupon Review – The Best Daily Deals In Your City

Now Is The Best Time To Start Saving For Big Purchases

Mark Riddix — Tue, 31 Aug 2010 12:00:59 +0000

There is no time like the present to start on things that you have been putting off. Getting a jump on your to-do list will reduce your stress levels and give you a sense of accomplishment. In addition, there is no better time than now to start saving for some big future purchases. By saving ahead of time, you will be more financially prepared to make some of these big purchases without having to take on massive amounts of debt. So, without further adieu, here are some ideas for purchases you should get started on now as well as tips on beginning to save for some future big-time purchases: 1. Start saving for next year’s summer vacation. You may have just come off of this year’s summer vacation which makes it the perfect time to start saving for next year’s vacation. Starting early will help you get a jump on planning your dream vacation for 2011. You could start small with a savings goal of $25 a week. Place this money in a high yielding savings account like ING Direct . By next year, you would have saved $1,300 plus the interest earned. It’s an easy way to save without really trying. 2. Start your holiday shopping. The holiday season is fast approaching. It’s time to start thinking about Christmas, Hanukkah, or whatever holiday you celebrate. One of the advantages of shopping now is that you may get a better deal than waiting until the last minute to start Christmas shopping. Another plus is that you have ample time to locate the must-have toy or video game for the holiday season. The closer it gets to Christmas, the more likely a product is to be sold out. So, start now and get your shopping over with. You can avoid pushing your way through packed malls on December 24 th trying to locate that game for little Bobby. Imagine all the stress you can save by getting this shopping out of the way ahead of time. 3. Buy a car. Don’t rush out and buy a car if you don’t need one. But, if your car is smoking when you pull up to your house, this might be a sign that you need a new automobile. This is a great time to buy a new car. The 2011 models are out and dealers have to get rid of old inventory. Dealers have no choice but to heavily discount older models. You can buy a used car and get a great deal since dealer lots will be loaded with 2010’s and 2011’s. If you are in the market for a new car, buy a 2010. You will get a brand new car with no miles on it for substantially cheaper than other buyers paid. 4. Upgrade your technology Technology is constantly changing. By the time you receive one product, it may already be outdated. So, why pay top dollar for any tech product? You can wait and save some dough. The end of the year is a great time to save on any technological gadget that you want. Laptops, cell phones, and software programs are all discounted heavily the closer that you get to 2011. For example, programs like QuickBooks are already discounting their 2010 products by 20%. Products like these will go for 50% off before the year is over. Who knew that you could upgrade and save money too? Have you begun the process of looking into any of these purchases? Have you started to prepare for some future, large purchases by beginning to save now? As always, any other great tips you have to add would be great appreciated! (Photo credit: epsos.de ) Related Posts: what are you thankful for on this thanksgiving holiday? Important Holiday Shopping Dates To Remember 7 Tips For Saving Money This Thanksgiving Holiday Need To Make Some Extra Holiday Cash? The Best Time Of Year To Buy Large Appliances Ring In Your New Year With a Financial Transformation Now Is The Best Time To Start Saving For Big Purchases is a post from: Money Crashers

Original post:
Now Is The Best Time To Start Saving For Big Purchases

Finding The Best Online Bank

Mark Riddix — Mon, 30 Aug 2010 14:00:26 +0000

Online banks are the place to bank these days. Everyone is looking for the bank that is paying the absolute highest interest rate on savings accounts. However, finding the best online bank is not just a matter of determining who is paying the highest interest rate. While a high interest rate is important, there are a number of different factors to take into consideration. For example, you have to look at the operations of the entire bank and see if it is the best place for your money. Here are 5 things to look for when opening your new savings account: Financial Soundness A bank’s ability to pay interest is only as good as the bank’s capital reserves. It’s important to place your money with a bank that has excess capital. You want to be sure that when you deposit your money in the bank that you will be able to get it out. The FDIC may guarantee deposits up to $250,000, but no one wants to go through the process of waiting to get their funds because their bank went under. You can check out the soundness of your bank on websites like Bankrate.com. Banks with 5 star ratings are the best capitalized and banks with 1 star ratings are headed for receivership. Years in Operation There are a lot of sound financial institutions that are good places to put your money. There are also a lot of fly-by-night banking organizations that appear every day. They pop on the scene offering high interest rates to new customers. These rates are unsustainable and the bank is forced to cut the rate substantially or go out of business. Look for online banks that have been around for a while and have a good long-term track record. Interest Rate The interest rate paid on your savings account is a critical factor. You want a bank that gives you the most bang for your buck. Look for banks that rank in the top 10 in terms of APR. Your bank should be competitive with other banks in terms of its interest rate. However, don’t just abandon your bank because another bank pays more interest. For example, it is not worth leaving your bank for an extra 0.1% from another bank, especially if your current bank has other advantages over its competitors. On the other hand, it is definitely worth leaving your current financial institution for an extra 1% if it passes the other tests discussed here. Ease of Withdrawal There is no point in placing your money in a bank if it is a hassle trying to get your money back out. Some banks require that customers call first to request a withdrawal. Other banks may take up to a week to distribute your funds. That is absolutely ridiculous. Withdrawing your money should not be a pain. It should be an easy process that can be done electronically and takes 1 or 2 business days max. Customer Service What’s the point of a company having customer service agents if you can never reach them? Whenever it comes to your money, customer service should be of the utmost importance. Responses to your phone calls and email should never take longer than 24 hours. Find a banking institution that is prompt and helpful whenever you have a question. If you feel mistreated by your banking institution, then look elsewhere. That’s a bank that obviously does not value your business. Here are a few of my favorite online banks who satisfy the above criteria and pass these tests with flying colors: ING Direct Capital One Bank Emigrant Direct What do you take into consideration when looking for the best place to put your money? (Photo credit: TheChristianAlert.org ) Related Posts: Why We Bank At Commercial Banks Ally Bank Review: Your Friendly Online Bank Say Goodbye To Free Checking Accounts ING Direct Review: Online Banking Leader ($50 Bonus Offer) Best Banking Promotions For The Month of June 4 Reasons Why Credit Unions Are Better Than Banks Finding The Best Online Bank is a post from: Money Crashers

Read more from the original source:
Finding The Best Online Bank

What Is Umbrella Insurance And Do You Need It?

David Bakke — Mon, 30 Aug 2010 12:00:09 +0000

I have never professed to know everything there is to know about money and finances, and I am reminded of that on a fairly regular basis. Recently, I came across the term “umbrella insurance” and realized that I basically knew nothing about it. I had heard of it before but really had no idea what it was, what it covered, and most importantly, not knowing if I should have it. We typically think of buying and paying for insurance as a nuisance until it really comes in need. I know that a lot of people have had horror stories with rejected insurance claims and bad experiences with adjusters and agents, but for the most part, insurance DOES save you from big financial disaster. Umbrella insurance is not a “necessity” when it comes to your portfolio of insurance, but for some people, it might make sense to have it. The following is a synopsis of what I found out: What is it? By definition, umbrella insurance is a liability-type policy that will protect the assets and future income of the policy holder above and beyond the standard limits on their primary policies. The term “umbrella” refers to how the policy covers one’s assets more broadly than their primary coverage. At the risk of sounding ignorant, I had to read that three or of our times to myself before it even began to make sense, and even then I was still a little confused. So, after I really dug into this thing, here is a layman’s definition for umbrella insurance. The most basic definition that I could come up with for it is “lawsuit insurance.” What Does It Cover? What an umbrella insurance policy will do is give you added protection against lawsuits that arise from damage to someone else’s property or injuries from an accident. It also covers a variety of other things including false claims, false arrest, invasion of privacy and so on. There are some things that it won’t cover, though, so get the details before moving forward. It can also provide what is considered “fill in the gap” coverage, where some of you other policies may not be adequate. Policies are usually written in increments of one million dollars. What Does It Cost? Of course, the actual costs of the policy will vary depending on your needs and so forth, but it looks like a ball park figure for a $1 million dollar policy for two people, cars, and a house will run you about $200-$250 annually. I was quoted $240 by my insurance agent. This works out to about ten bucks a month per person per year. In the grand scheme of things, it is not that expensive at all. What Is It Really For? Twenty years ago, I would have said that umbrella insurance would be better called “paranoia insurance.” What this insurance covers you on are catastrophic accident type things. A tree on your property falls down on your neighbor’s house in a storm. You dog bites somebody. You are found to be at-fault in a major car accident. However, in this lawsuit-happy society that we live in today, getting sued at some point in your life is less about paranoia and more about reality. I’m not saying that the percentages say that you will be sued at some point it your life; lawsuits are just much more prevalent these days. Even if some idiot out there decides to sue you for some ridiculous reason, remember, you still have to defend yourself. An umbrella insurance policy would help defray the costs of this defense. Do You Need It? This is really a personal choice that you have to make for yourself, but you can base it on some facts. The biggest thing that I would look at is your own net worth. If your overall net worth is less than one million dollars, is there any sense in covering yourself for an additional million over and above your regular policies? I would think not. Another factor to consider is your daily routine and lifestyle. Does your job, hobbies, or your place of residence put you at any increased risk for a catastrophe? Lastly, consider what level of peace of mind you feel that you need? If this is important to you, then maybe you’d want to consider getting a policy. Personally, at this point in my life, I doubt that an umbrella insurance policy would be right for me. My net worth is not at a level where having one would be prudent, and I just don’t think I have some of the liability factors needed to warrant a policy. If I had a pool in the backyard, or a small business doing something like construction, or teenaged children, I might consider it. But, at least it’s good to know what the policy is and what it covers. What are your thoughts? Do you think it’s right for you? (photo credit: protectorr ) Related Posts: Should You Buy Liability Umbrella Insurance? To Buy or Not To Buy Rental Car Insurance Money Crasher’s Quick Guide to Insurance Four Types of Insurance You MUST Have At All Times When Is The Right Time To Drop Collision Coverage On Your Car? How To Save Money When Buying Life Insurance What Is Umbrella Insurance And Do You Need It? is a post from: Money Crashers

Continued here:
What Is Umbrella Insurance And Do You Need It?

Is the McMansion Dead?

Darwin — Mon, 30 Aug 2010 11:33:54 +0000

Over the past few weeks, there have been several headlines declaring the death of the McMansion. Depending on how you define the “McMansion”, there may be some merit to the argument, but other aspects of the American desire to have things that are “big” are alive and well. I mean, didn’t we declare the death of SUVs when oil prices hit $140/barrel only to see sales come roaring back when oil then dropped 70% the following year? What is a McMansion? To some, a McMansion is just a large home. Anything exceeding 2500 square feet or so probably qualifies to them. To others, there are some more discerning criteria. When a developer comes in a clears a 5 acre lot and plops as many 3000 square foot homes as possible into the development leaving little room for anything other than a driveway, that’s another story. In these cases, the lots are often .2 acre or less, there’s no yard and no trees as far as the eye can see. Then, to others, even estate-type developments with 2+ acre lots qualify. I guess it depends on your perspective. You probably consider other peoples’ homes to be a McMansion, but not yours. Is the McMansion Dead? It probably depends on your personal perspective on what a McMansion is. Let’s focus on the key criteria then, to answer this question. Size. According to CNN , the median new home size fell to 2,135 square feet in 2009 after peaking at over 2,300 earlier in the decade. So, to me, (and I’m glad they used median instead of mean ), it does sound as though people are settling for smaller new homes. But is this really because that’s what they want? Many articles go on to say that people’s attitudes have somehow changed, as if they’re now repulsed by large homes. I don’t think this is the case at all - it’s the economy stupid! The economy is so uncertain right now, that a) people aren’t able to use their existing home as a piggybank to pull out unlimited equity, b) people don’t have a lot of liquid cash since they’re paying down debt and other obligations and c) they are afraid to take on a larger monthly cost in the form of mortgage and taxes than they may have been 3 years ago. Therefore, let’s say (totally unrealistic but bear with me) that the economy miraculously recovers over the next year, business is booming, and incomes are up. People are feeling better about their current and future financial outlook. Under these circumstances, I would fully expect to see the median home size start to increase again. Americans like big things. We had to have big SUVs with the seat very high off the ground. Big, flashy engagement rings, designer clothes and bags, anything to show your neighbor and friends and family how well-off you are. This is the American way. Personally, I view this phenomena as solely an economy issue and not a change in attitudes toward larger homes. Whenever the economy does actually recover, come back and let me know if I was right. What do you think? Are Americans really content in smaller homes? Or scared of the economy? ©2010 Darwin's Finance . All Rights Reserved. . Related posts: Bragging Rights – Have You Considered the Context? Dogs of the Dow Stock Trade is Dead – Don’t Fall for the Hype USDA Home Loan Program – The 0% Down Bonanza You’ve Never Heard About Gold Hype? You’re Being Taken for a Ride 3 Painless Tips to Save Up for Something Special

Read the original here:
Is the McMansion Dead?

Personal Finance Round-Up: Paying Off Your Credit Card Debt Once And For All

Erik Folgate — Mon, 30 Aug 2010 01:25:47 +0000

Eliminating your credit card debt and all of your debt is the single most important thing you can do to help you start winning with money. But, it’s one thing to just pay off your credit card debt and get right back into debt. When you decide to eliminate your debt and achieve the goal, your next goal should be to never get back INTO debt. Wallet Pop has a great article about how to pay off your credit card debt once and for all. So, are you ready to cut up your credit cards? It’ll be a HUGE weight off of your shoulders, I promise! Here’s a look at some other great articles from around the personal finance community: Must-Have Qualities To Ensure Long-Term Job Security : What’s the secret to keeping a job for a long time? Here are some good tips on how to be a really good employee, enjoy what you do, and be a great co-worker. [WiseBread] How To Beat Inflation: With all of the funny money flying around in our economy because the government has been printing money like it’s water, inflation is bound to be inevitable in the near future. We must prepare for it, especially with our investments. Here are some good tips on how to beat it. [Cash Money Life] Why I Don’t Chase The High Interest Rate : Interesting article from Flexo on why he doesn’t just chase the highest interest rate when it comes to picking a savings account. [Consumerism Commentary] Why I Buy Local : Good article from JD Roth on why he buys local. There are so many advantages, including supporting your local farmers, which is very eco-friendly! [Get Rich Slowly] 22 Signs Your College Degree Might Not Be Worth the Money : Some good insight from Len on how making sure you’re getting the full value out of your college degree! [Len Penzo] Boomers versus their children : Pretty interesting thoughts on the different generations and who truly has it best. Check it out. It’s very though-provoking. [Monevator] Tuesday Tips, Week 24 : Here are some great tips for keeping that heat out during these hot summers! Some of these tips are great investments. [Little House in the Valley] Five Budgeting Myths: Good, straight-forward article on some budgeting myths that you should be aware of when you’re creating your own budget. [Five Cent Nickel] Bonding Relationships : Unsure what qualities you need to build strong relationships? Check out the 4 qualities key to building long-term relationships. [Live Real, Now] Win a Pair of Ugg Boots : Want a new pair of Uggs? Check out this Ugg Giveaway competition! Good luck. [Miss Thrifty] Free Bike Repair Bliss : There are still some things in life that are free, including things you might not expect. Check out this post on getting a free bike repair. [Money Beagle] Don’t forget to follow us on Twitter and become our fan on Facebook ! Related Posts: Adjusting Your Portfolio for Inflation Check Out This Article About The Entrepreneurial Spirit Tips for Those Starting Their First Real Job 5 Safest Investments For Your Money Earn $100 For Signing Up To A New Chase Personal Checking Account Question: Where Should I Park My Short-Term investments? Personal Finance Round-Up: Paying Off Your Credit Card Debt Once And For All is a post from: Money Crashers

See the original post here:
Personal Finance Round-Up: Paying Off Your Credit Card Debt Once And For All

The First (And Most Important) Step To Fixing Your Finances

David Bakke — Fri, 27 Aug 2010 23:54:34 +0000

I have had many conversations with many people in the past who have inquired about how to get out of debt. Most of these people realize that they are in debt and that they do need to do something about it. Realization of the problem and desire for a solution is one of the all-important first steps, but there’s still a lot of work to do. With that said, some people out there don’t even realize that they will be “wallowing” financially for the rest of their lives if they don’t do something. For them, they need to start off by admitting the problem. However, for those that have made the realization, their biggest question is: Where do I start? What do I do first? What’s the best way to get going? The Answer Is Simple Most are pretty surprised by my answer . Of course, I usually throw the question right back at them and say “Well, what do you think the first step should be?” The answers are varied. Some say organize their bills, some say cut up their credit cards, some say eliminate all the spending that they can. And the answer that I give to all of those responses is: Yes, Yes, and Yes! Act! That is because to me the most important first step that you need to take to fix your finances is that you need to do something. You need to act. For the most part, it doesn’t necessarily matter what that first action is; you just need to do it. You need to stop asking questions of yourself, stop pondering the mystery of getting out of debt, and start doing. I’ll say it again…you need to act! Baby Steps But of course, most people want more direction than that, and what I usually follow up with is this. Depending on your degree of debt, your first action could be one of many things. If you simply have a lot of credit card debt but really don’t have many expenses to speak of, then obviously you just need to focus on your credit card debt. However, most people that I speak to are in the same boat that I was. They are in some serious debt, and just have no idea where to begin. In that case, I usually suggest baby steps. The phrase “Rome wasn’t built in a day” comes to mind. Baby steps are what I did in the beginning. Look at it this way. If you are in serious debt, it probably did not happen overnight. There are probably some pretty serious behavioral and spending issues that need to be addressed, and trying to do it all at once is probably not going to be effective. Therefore, I suggest starting small. Comfort Zone I’m sure you’ve heard of a “comfort zone” and if you’re going to get yourself out of debt, you most certainly need to get out of your comfort zone. And once again, trying to institute massive overhauls in your finances all at once will probably lead to nothing more than you giving up and staying in your current situation. Honestly, I think the very first thing that I did was give up drinking Coke. I decided that this was an unnecessary expense and that I could do without it. Well, considering that Coke has caffeine in it, it wasn’t the easiest thing to do in the beginning. However, I stuck with it, gave them, up and before long, I had taken my first baby step which in this case happened to have a health benefit in addition to the financial benefit. Momentum From there, momentum builds kind of like a debt snowball . After I saw that I could actually take a step in the right direction, I took a few more. Later, I decided I needed to stop going out to eat so much. I didn’t eliminate it, but I curtailed it quite a bit. Then, I decided I didn’t need any new clothes for a year. Before you knew it, I had some pretty good momentum going. Contagious Before long, it got contagious. I started taking a long hard look at my “spending habits” and I eliminated a lot more stuff that I deemed unnecessary. I didn’t tell myself “forever,” I just told myself no more until I was out of debt. This thought process became contagious and soon after, I began to look at my bills and figure out ways that I could save on each of those. Then, how to save as much money as I could on the things that I still needed to spend money on. And the momentum continued to build. Act The first thing you need to do to get out of debt is to act! Do something. Eliminate one thing from your life that you know that you can do without. Take one little step in the right direction towards financial freedom. More than likely you’ll see that this will lead to a second baby step, a third baby step, and more. Then, you might throw in there a few leaps and bounds and before you know it, you may just find yourself with a little extra in the bank at the end of the month. As always, your comments and suggestions are greatly appreciated. (photo credit: marisag ) Related Posts: Budget Tip: Car Pool to Work The 11 Principles Series: Get Out of Debt and Stay Out of Debt Five Steps To Getting and Staying Out of Debt (Step 1) How To Reverse The Debt Cycle An Analysis on the Seven Baby Steps for Obtaining Wealth by Dave Ramsey Five Steps to Getting and Staying Out of Debt (Step 3) The First (And Most Important) Step To Fixing Your Finances is a post from: Money Crashers

Original post:
The First (And Most Important) Step To Fixing Your Finances