Your Money_ The Missing Manual - J. D. Roth [70]
How important is online access? Do you want to download your transactions to Quicken or Excel? Do you need online billpay? Some accounts (and banks) offer more advanced online features than others.
Your answers to these questions will direct your search: If you need constant access to your money, a CD isn't the best choice. If you intend to keep a high balance, look into a money market account. By putting in a little time and doing some research, you can pick the best accounts for your situation.
Making the Most of Your Accounts
You'll have more fun banking—and earn more money—if you do more than just accept the accounts you get by default. When you open an account, find out everything about it; read the fine print to learn what you can and can't do. And remember that accounts aren't just places to stash money—use them to pursue your goals! Here are some easy ways to make the most of your accounts.
Finding the Best Rates
If you're shopping for the best interest rates, check out online banks (Online banks). In general, they offer better rates than traditional banks and credit unions.
Many websites have tables listing current interest rates. I keep one at Get Rich Slowly (http://tinyurl.com/GRSrates), and you can find others at sites like MoneyRates (www.money-rates.com) and BankRate (www.bankrate.com).
Keeping Your Accounts Optimized
If you use a traditional bank or a credit union, you should ask a teller once or twice a year if there are any improvements you could make to your accounts. Ask about:
Better interest rates. Is there a similar account that might give you a better return?
Lower fees. It's a shame to throw money away on service charges and other fees, so ask about free checking or to have fees reduced.
Automation. Does the bank have a new website? Do they now offer free billpay? Can they help you set up a direct deposit of your paycheck?
Special offers. Is the bank running any promotions?
Banks often introduce new products and services to meet customer demand. They're perfectly content, however, to let you keep your old low-interest, high-fee accounts. It's up to you to take the initiative to ask for better deals!
Tip
It can pay to develop a relationship with a banker. When she gets to know you and your circumstances, she can make suggestions based on your needs and goals. Such advice may not matter if you have only $100 in the bank, but it becomes more valuable as you grow older—and wealthier.
Getting Fees Waived
Banks make a lot of money from fees. According to a report in the Financial Times, U.S. banks were set to earn over $38 billion in overdraft fees alone in 2009. And there are plenty of other kinds of fees: stop payment fees, billpay fees, monthly service charges, returned check fees, and so on.
Banks get away with charging for this stuff because few people challenge them—folks just accept the fees as a matter of course. But it doesn't have to be that way. You may be able to get fees waived simply by asking. For best results:
Know what you want—and why. Banks are more likely to waive fees if you give them reasons to. Point out things like how long you've been a customer, how you've never had trouble before, and that you generally have a lot of money in your accounts.
Ask in person. You'll typically have better luck speaking to a real human being—face-to-face, if possible. It's easier to say "no" to an email than to a customer you see all the time.
Ask to speak with a manager if the person you're dealing with can't help you.
Be polite. Remember: You have the right to ask for lower fees, but you're not entitled to them. Be calm and considerate.
For more tips on asking for things, flip back to the box on Frugal Tactics Anyone Can Use.
Tip
The best way to deal with bank fees is to avoid them in the first place. To do this, read all the paperwork about your account and all the new stuff