SavvySugar

Washington Mutual Raises Online Savings Account Rates

SavvySugar — Tue, 23 Sep 2008 15:30:18 -0700

Because so many of you bank with Washington Mutual, I wanted to give you a heads up about its most recent promotion. Today the bank raised its online savings rate to four percent, which is higher than most interest rates I've seen lately. Most of you who use WaMu are sticking with the bank despite its troubles, so why not take this opportunity to start that savings account you've been putting off? As long as your account is less than $100,000, your funds are insured by the FDIC.

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Do You Bank With Washington Mutual?

SavvySugar — Fri, 19 Sep 2008 14:00:41 -0700

Whoo hoo is probably not the best way to express the present sentiments of Washington Mutual's customers and employees. The troubled bank has been looking for a buyer all week and there's a possibility that WaMu could go under.

If your accounts with WaMu are worth less than $100,000 than the FDIC will insure that you don't lose a cent, so transferring your money to another bank wouldn't do much to protect your cash further. Do you bank with Washington Mutual?

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Tips for Using Your Debit Card

SavvySugar — Thu, 21 Feb 2008 09:58:20 -0800

Everyone I know uses a debit card, and it's been that way for quite some time. I've heard tales of some people who are still holding out and using personal checks and cash only, but debit cards have definitely caught on for the most part.

Here are a few handy tips and things to consider that will make you feel more informed and confident at the cash register.

PIN-based transactions: As the name suggests, you have to enter your PIN to make a purchase. The amount of your purchase is immediately debited from your account.
Signature-based transactions: Again, the name gives this one away. Your signature is required to complete a purchase. It can take up to two or three, occasionally more, days for the amount of your purchase to be debited from your account.
Transactions requiring your PIN are generally more difficult for fraudsters to conduct than those asking for your signature since only you should know your PIN and anyone can sign your name.
Before you even activate your debit card, ask your bank if it charges any fees for using the card. Note that some merchants charge a fee when you make a purchase, be sure to check.
Choose a PIN that’s not obvious, so avoid using numbers like your date of birth or address.
Keep your PIN in a safe place and do not share it with anyone.

Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.
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Do You Know How to Get Your Save on?

SavvySugar — Fri, 08 Feb 2008 09:50:00 -0800

This often underutilized element of saving has been called the eighth wonder of the world. Albert Einstein is rumored to have said it's one of the most powerful forces in the universe. Can you guess what type of interest this praise is describing?

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Make a Savvier Savings Strategy

SavvySugar — Fri, 01 Feb 2008 09:59:37 -0800

Saving money is a means to getting the things you want in life - whether it be a tropical vacation, a new lust-worthy bag, or maybe even early retirement! Developing a savings plan takes the burden off of saving and turns the seemingly impossible into possibilities. Here are some tips to get you started.

Factor splurges into your budget to prevent any guilt from indulging.
Make a budget that reflects the way you actually - not ideally - spend money.
Create lists to help you stick to your budget when shopping.
Keep track of your spending for at least a week to see where you're spending your money. Then, use your spending journal to find ways to save.
Pay yourself first by setting aside five to 10 percent of each paycheck in your savings account.

Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.

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Let Your Savings Do the Work

SavvySugar — Tue, 29 Jan 2008 10:27:41 -0800

You work hard for your money. Did you know your money can work hard for you, too? Your savings can grow with a savings account with a great interest rate, so you can afford to pile on a few fancy accessories?! How can you let your savings do most of the work for you?

I suggest you take a look at the rate and yield you’re getting with your bank to make sure you’re not missing out on extra savings. Some banks offer high-yield savings, while other banks offer little more than tiny one-percent savings yield.

We all know we should save, but sometimes other things get in the way and we have racks of shoes to prove it. Paying yourself first means you won't be tempted to spend the money you need to be saving. Tricky, eh? Saving now ensures you're never caught in a sticky situation without the cash to help you through it. Think of it like that umbrella you keep in your trunk for a rainy day - you hardly realize it's there until you really need it.

Your savings can really grow with one of WaMu's high-interest savings accounts. Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.

Do You Use Online Banking?

SavvySugar — Thu, 10 Jan 2008 10:31:32 -0800

I bank online because waiting in line just isn't my thing. I need the ability to access my account whenever I want and from whatever computer happens to be in front of me.

Our friends at WaMu know your time is precious and make online banking as easy as store-bought pie. Most applications to open a checking and high-yield savings account online take only seven minutes, which means you can get started on organizing your finances in the same time it takes to shower, and do it all while wearing your comfy robe and fuzzy slippers! If questions come up, customer service is always around to help.

When you bank online, all of your latest balances, statements, and transactions are available for your viewing pleasure. Worried about your privacy? Many banks will send you email alerts to keep you informed about your account activity.

One of the biggest benefits is the option to pay bills online; you can pay all of your bills in one place and even have the ability to set up your account for automatic payments. That leaves more time for yourself, something all of us could use. Tell me: Do you bank online or visit your local branch?

Thank you to WaMu for sponsoring this post.

Total Deposits at Washington Mutual are FDIC insured.
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Tough Stuff: Buy vs. Rent

SavvySugar — Mon, 18 Feb 2008 09:50:41 -0800

If home ownership is a personal goal for you, then you and I have something in common! I'm excited for the day that I have a home sweet home, and I am constantly thinking about what it will take financially to get there. Here are some questions we should all ask ourselves and steps we should take in deciding to take the leap from renters to owners.

How long would you plan to live in your new home? The general consensus is that if the answer is three years or fewer, keep your renter identity until you're ready to settle in a bit longer. It takes some time to break even on the closing expenses.
Are you ready to give up the flexibility of renting? When my washing machine broke a few months ago, it was replaced with a new one free of charge. You will have higher maintenance fees when you own a home.
How much do I need to save for a down payment and closing costs? If you put a minimal down payment, you may need to get private mortgage insurance until you have sufficient equity in the home. Closing expenses generally range from three to eight percent of the house price, depending on various factors.
Will I have enough money each month to pay the mortgage, insurance, maintenance costs, and property taxes? Suze Orman wrote about an exercise that I think is worthwhile. She noted that, on average, you need to add another 40 to 45 percent to your monthly mortgage payment to get a more accurate total monthly cost. Assuming that your mortgage payment is similar in cost to your rent, open up a savings account and deposit the equivalent of the 40 to 45 percent to get an idea if you could handle the extra expenses.

Using a buy vs. rent calculator can be a helpful when figuring out if you should rent or buy your abode.

For informational purposes only. Consult your financial adviser regarding the benefits of buying or renting. Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.

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Savvy Solution: How Much Should You Save For Retirement?

SavvySugar — Tue, 12 Feb 2008 09:50:46 -0800

As fabulous Savvy readers, you probably know by now that retirement is one of my most talked about topics. Maybe you even have dreams about retirement accounts like I do (sad, but true). Exactly how much should you be aiming to save to be golden in your golden years?

It's a highly personal calculation because of a variety of factors, like the cost of living in your area, whether you have any dependents, and your lifestyle and health. Because we can't predict everything in life and have to consider that inflation will take its toll, right now we can only monitor if you're on the right track with your savings plan.

The general rule is that you save 10 percent of your salary to be financially secure in retirement, but that won't necessarily be enough for everybody. The amount you need to save each year primarily depends on three things: your current age, your income, and how much you've already saved. Assume that you'll need about 80 percent of your pre-retirement income for expenses during retirement.

Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.

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Should Marriage Mean Combining Finances?

SavvySugar — Mon, 04 Feb 2008 10:01:12 -0800

There are two questions I hear most when people find out I’m engaged: Am I going to take his last name, and how are we going to handle our finances? The second question is an important one for couples to consider when getting married, though don’t you think it’s funny that this is one of the only times other people don’t consider money talk to be taboo?

There’s no right answer in terms of whether or not a couple should combine their finances; the real answer is to do what’s right for you and your unique situation. Some people feel like there’s no need to combine any money and think it’s easier to leave things be, others struggle with letting go of the independence of controlling their individual money, and some have zero gripes about creating one big love and money pot. Then, of course, there’s everyone in between. To see my solution just read more.

I think a good solution is to pool most of your money while maintaining small, separate checking accounts for personal expenses. That way, you can pay all joint expenses out of the joint account and use your personal account for things like girls’ nights and pedicures. The important thing is finding what works for your relationship and being open in discussing finances with your new husband. Also, it's okay if you need to let the whole “husband” thing sink in before diving right into the serious stuff.

Total Deposits at Washington Mutual are FDIC insured. Thank you to WaMu for sponsoring this post.

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