Savings accounts - nest egg builders or wastes of time?

By Peter Andrew

You say tomatoes...

Do you think the Federal Reserve should be more like the Bank of England? No, I'm not suggesting it should employ people with funny accents or lose most of its international influence. But perhaps its people could learn something from their opposite numbers in London about plain speaking. The Daily Telegraph, a UK-based newspaper, reported at the end of September 2010 some remarks by the deputy governor of the Bank of England. He told British savers to, "stop moaning and start spending."

Well, that's blunt, and you can't imagine a senior Fed official coming out with anything like it. However, if you look at what the Fed does, rather than what it says, it's hard to escape the conclusion that it's trying to send a similar message to Americans. Perhaps it should just come clean like the Brits.

Saving accounts that lose you money

Partly thanks to the Fed, interest rates right now are generally at or near historic lows. That's great if you need a mortgage, but bad news if you're saving up for the down payment you'll need to get that home loan - or for anything else for that matter. Indeed, if you factor in fees and inflation, you can actually come out at a loss by keeping your money in some savings accounts.

But don't despair. It may be a long time before we again see the sorts of high rates for savers that

By MoneyBlueBook

Usually when I open my credit card statements, my eye goes right to the line that tells me how much I made during the past month in cash back and credit card rewards points. Recently, though, something else caught my eye when I opened my monthly statement: the brand-spanking-new statement format mandated by the Federal Reserve.

As of July 1, credit card issuers were required to conform with new rules approved by the Federal Reserve Board to protect consumers from what many have seen as unfair (or at least unclear) practices by the card issuers.

The new statement does a lot of things right--it's now abundantly clear, for example, just how long it'll take you to pay off even a small balance if you just send in the minimum payment required (and how much interest you'll rack up in the process). Closing one of the classic traps of card usage that have ensnared many, the new statements must tell cardholders up-front just how much their credit card rates will jump and how much the late fee will be if you're late with your payment. And interest fees and fee charges of all types are now labeled clearly--you'll be able to see at a glance whether that zero percent balance transfer transaction was correctly implemented.

FiveCentNickel.com has a nifty infographic with mouseover highlights of the new changes:

Credit Card Statement Changes from Five Cent Nickel

By MoneyBlueBook

If you're searching for a list of the best online banks for your savings, then you've arrived at the right place. One of the most common, if not the most often asked question I get as a personal finance blogger is which bank I would recommend to those looking to get the best interest rate on their money.

While some of us plow our personal savings into home mortgage payments or invest them into stocks, most of us invariably keep a certain stash in more accessible bank accounts for emergency fund purposes. Some like myself also use high interest savings accounts to save up money for specific purposes -- in my case, I'm saving up for a future down payment on a house.

So, if you're keeping money in a bank account anyway, why not try to get the highest interest rate possible? To address this need, I've compiled below a list of what I believe to be the best online banks available today -- banks that offer the best deals for high yield savings accounts. Many of the recommended firms are also very competitive in the areas of certificates of deposit (CDs) and checking accounts as well.

By MoneyBlueBook

Updated List Of The Best Nationally Available Bank CD Rates Below

Below, I've included a list of the best CD (certificate of deposit) rates presently found online - periodically updated by yours truly whenever I am alerted to major changes in the rates. All of the bank CD rates listed below are nationally available and not restricted to residents of any particular state(s). While national annual percentage yield (APY) rates for banks have fluctuated and dropped across the board due to the economic troubles we've been experiencing, the interest rates offered by CD's still remain consistently higher than that offered by other forms of FDIC insured deposits such as savings accounts and money markets.

For many years now, I've kept my short term cash and emergency fund money saved in a variety of online savings accounts and online CD's - jumping from one bank to another in pursuit of the highest interest rate yields. To maximize my money to its highest passive income potential, I never keep my short term cash idle for too long. At the very least I always ensure that they are properly invested in the best interest bearing accounts offering me the most competitive yields based on what I'm willing to give up in terms of account accessibility and liquidity. While I keep my most short term emergency funds stored in ultra accessible savings accounts, I store the bulk of my regular cash savings into certificate of deposits, neatly arranged into CD ladder setups for maximization of return and liquidity.

Contrary to

By MoneyBlueBook

Update: New FDIC and NCUA Insured Limits Extended Until January 1, 2014

After months of bank failures and gloomy economic news, we finally have some good tidings from our federal government. No, it's not another round of stimulus checks for those of you who have been hoping and waiting with bated breath, but rather, it pertains to the FDIC insurance that guarantees the safety and security of bank deposits.

The current increased FDIC insurance limits of $250,000 were scheduled to be rolled back to the previous $100,000 limits on the last day of 2009. However just recently, Congress voted to extend the deadline for four more years - through December 31, 2013. Those of us who have significant amounts of money in the bank or sizable funds invested into long term certificates of deposit (CD rates) undoubtedly have been nervously eyeing the impending December 31 expiration date of the $250,000 threshold. Thus this news ought to come as a tremendous welcomed relief. Those of us who have been considering renewing our certificates of deposit can now consider maturities with a longer time horizon without fear of falling outside of federally protected limits.

Avoid Banks That Are Not FDIC Insured, Or Credit Unions That Are Not NCUA Protected

As many of you may know, if you have money in a bank account, your bank deposits are generally insured by the Federal Deposit Insurance Corporation (FDIC) up to the maximum current limit of $250,000. Similarly, if you have money saved in a credit union account, your deposits are

By MoneyBlueBook

Review Of Ally Bank.com's High Yield Money Markets, Savings, and CD Offers

After a rather bumpy ride over the last few years, the financial institution formerly known as GMAC Bank is now Ally Bank. In mid-May 2009, the former financial lending and banking arm of General Motors took the first of what it hopes to be a series of reinvigorating steps towards distancing itself from the much criticized and tainted image of the now bankrupt auto maker.

Since then, many of you may haven noticed their recent aggressive purple-themed advertising blitz on TV spots and online ads. With the launch of Ally Bank, the company is undertaking a massive promotional effort to differentiate itself from the collectively damaged reputations of other struggling online banks in the hopes of positioning itself as a commercial advocate of honesty, transparency, and accountability. Though the former bank has been struggling mightily in the midst of the worst economic recession and subprime mortgage crisis in decades, now that it's flush with bailout funds courtesy of the federal government's Troubled Asset Relief Program (TARP), the new Ally Bank is now sufficiently stabilized to concentrate on growing its depositor base and rebuilding its image.

Currently, Ally Bank's interest rate offers are extraordinarily competitive and have been consistently dominating the high end of the bank rate spectrum. If you are willing to accept the view and belief (as you perhaps ought to) that the government's FDIC insurance protections are more than adequate to guarantee the safety and security of your banking