Posts Tagged account
Check the Rules on Your Rewards Programs
Posted by Tetyana Matychak in Budget on May 25th, 2010
For those of us who play the rewards game — collecting miles and points from airlines and card companies and others — our earned perks have real economic value. So much so that years ago, Yodlee, which provides the guts for many online banking and brokerage Web sites, started allowing people to update their frequent flier balances automatically right alongside their investment portfolios.
To protect these earnings, however, you need to keep up with the rules of your various programs. Here are four reasons why:
1) The rules may change.
Programs tweak the fine print almost every year, though the story of the old Chase 5 percent cash rebate card illustrates how big the changes can be. As we mentioned in a Bucks post not long ago, Chase took away the once rich rebate only to restore it later in an arguably more limited form.
2) Partners may be added (or taken away).
If you’re earning points in, say, American Express’s Membership Rewards program, where can you redeem them? Those of us banking the points who live near New York City rejoiced several years back when it became possible to redeem them for JetBlue points. Read the rest of this entry »
Maximize savings through bank-account awareness
Posted by Tetyana Matychak in Banks, Favourites on July 29th, 2009
How to save money? Here are some views from Richard Barrington, the primary spokesman and personal finance expert for MoneyRates.com, which examines rates on bank accounts. A freelance writer and novelist, Barrington spent more than 20 years as an investment industry executive. Here’s what he had to say:
Yes, the recession is dragging on, the stock market is sputtering again, and interest rates are low. It’s an era of diminished expectations, one in which we must return to the basics like saving more money — which is about as fun as being told to eat your vegetables.
Feeding your savings account can help you build a little more financial muscle than you might think.
Let’s talk about those low interest rates on your accounts. A 2 percent interest rate with 1 percent deflation these days is worth as much as a 6 or 7 percent interest rate was under normal inflation conditions. You wouldn’t say no to 6 or 7 percent, would you? Because most of us have never seen deflation before, we have to readjust our thinking. Do the math and you’ll see it’s true: 2 percent is the new 6 percent.
Also, because the limit on FDIC deposit insurance has been raised to $250,000 through the end of 2013, it gives you more opportunity for pooling your deposits with one bank. Why is this important? Because banks often offer fee waivers and/or higher interest rates to large depositors. So, as you accumulate money, make sure you use that additional financial muscle to get better deposit terms. Read the rest of this entry »
Can a Credit-Card Company Cancel Your Card and Not Tell You?
Posted by Tetyana Matychak in Banks, Favourites on July 17th, 2009
In the last few months, we’ve heard from plenty of readers that not only are their cards being canceled, but they’re also finding out the hard way: At the cash register while trying to make a purchase.
Over at Consumerist is the tale of Joey, who saw four (yes, four) of his Chase cards canceled. Plus, his Chase Freedom rewards are no more.
From Joey’s letter:
The rep told me my card had been canceled. Not only my Freedom card, but also my 3 other Chase credit cards (I use them for different rewards). I told him it was outrageous that I hadn’t received any early notification, and all he could say was that I would be getting something in the mail soon. I asked why my cards were canceled, and his response was that I had too many loans out so Chase considered me a risk. For the record, I do have loans that I’m paying off – my student loans and the loan on a recently purchased house. However, I’ve always paid the balance on my Chase credit cards in full every month and rarely ever am I late (the last time was at least 6 months ago). Nothing in my history with them would cause them to think I would not pay my bills. The rep couldn’t do anything for me so I asked to speak to a supervisor. I was told they were busy and that one would call me back. No one has since. Read the rest of this entry »
The Bite of Bank Fees
Posted by Tetyana Matychak in Banks, Favourites on June 30th, 2009
Customers Pay More as Institutions Seek Ways to Cope With Revenue Squeeze.
Your bank wants more of your money, and it’s found a way to get it: by jacking up the fees on your account.
Customers are paying more to maintain a checking account and withdraw cash from an out-of-system ATM, and when they bounce a check. To make up for declining revenue, many banks are boosting fees and are requiring higher minimum balances for many accounts.
The institutions also have made it easier for customers to spend more than is in their accounts — and then hit them with substantial fees, a practice so vexing to consumer advocates that the Federal Reserve is thinking of regulating it.
Bank revenue has plummeted on the back of foreclosures and rising credit card delinquencies. Now Congress has passed a law cracking down on arbitrary and excessive credit card fees. So the banks have been fighting back.
“There is an economic storm that has made revenue fall,” said Michael Moebs, an economist and chief executive of Moebs Services, an economic research firm in Lake Bluff, Ill. “Fee income is basically where banks and credit unions can offset both loan- and investment-related losses.” Read the rest of this entry »
Obama’s top 10 stocks
Posted by Tetyana Matychak in Favourites, Fund Markets on May 18th, 2009
According to the latest disclosure from the White House, President Obama is a fan of index-fund investing. See the stocks in his main holding.
When it comes to policy, President Obama is moving like lightning. But when it comes to his investments, he’s playing it cool.
Obama holds the bulk of his investing assets in U.S. Treasury bonds, with a range of between $1 million and more than $5 million, according to a disclosure of personal financial interests released Friday.
He also has between $101,000 and $265,000 in two checking accounts.
To save for his kids’ college tuition, he has between $100,000 and $200,000 in two 529 savings plans from Bright Directions: One for children up to 8 years old and one for those between 9 and 12.
The vast majority of his mutual fund holdings are in the Vanguard FTSE Social Index fund (VFTSX), with a range of between $115,000 and $250,000. Read the rest of this entry »
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