SavvySugar

Helpful Banking Tips For 20-Somethings

Anna Monette Roberts — Fri, 14 Oct 2011 03:05:52 PDT

I remember receiving my first paycheck postcollege – along with my first checking account fee. While you're a student, many banks will prompt you to sign up with a free checking account, but things change when you graduate. I was startled and annoyed at this fee, but little did I know the few years preceding college, I would rack up several others. Here are five important things you should be aware of when banking in your 20s.

Know the fees associated with your account. Ask what types of fees to expect and how you can avoid them. They creep up, and your bank might not prepare you for new fees either. For instance, large banks like Bank of America are instating monthly fees for debit card usage. While charges are between $3-$5, it's still a pretty significant fee for debit card users.
Your purchasing habits are stored. In the ever-connected modern day world, purchases made by debit and credit cards are stored and analyzed. This might not mean a whole lot to you in terms of your debit card usage, but companies could use the data to determine your interest rates for credit cards. Keep that in mind if you tend to make not-so responsible choices like purchasing huge items spontaneously or blowing your paycheck in a 24-hour period. Otherwise, opt to make more cash purchases.

Watch Out: Bank Fees at an All-Time High

Emily Co — Mon, 25 Oct 2010 13:30:27 PDT

Fees are going up, up, and away, according to a Bankrate study that was released today. Consumers need to be aware of these fees, especially during the holiday season, a time when there is an increased amount of spending. Managing your money is going to be even pricier, so users will have to be more aware of their budgeting practices and keep an eye on the sneaky bank fees. Here are some of the increases you should watch out for:

ATM fees: The ATM fees have risen to $2.33 from the previous year, an increase of five percent. If you're using an out-of-network ATM, you'll be charged an average of $1.41. That's seven percent higher than last year.
Minimum balance requirement: Note: This applies to accounts that require minimum balances. This year, the average minimum balance requirement to avoid monthly fees in a noninterest checking account has risen to $249.50 from $185.75 last year. For the case of interest-bearing checking accounts, it has increased to $3,883.40 from $511.22.
Bounced checks: If you bounce a check this year, you might be paying the average of $30.47. This compares with last year's average bounced-check fee of $29.58.

Last year, American banks made over $20 billion on debit and ATM overdraft fees alone. Remember a good way to avoiding some of these bank fees is to check out online accounts such as ING or SmartyPig. As for ATM fees, make sure you have enough cash on hand, and withdraw money only at your bank's ATM machines or get cash back at grocery stores. Stay alert, Savvy readers!

New Trojan Empties Your Bank Accounts on the Sly

GeekSugar — Thu, 12 Aug 2010 05:47:49 PDT

There's a new trojan virus on the block, and instead of infecting your computer with malware or copying your data, it's actually stealing your money. Over 3,000 people in the UK have already been emptied of nearly $1 million dollars to date from the Zeus3 trojan, and while this sounds like the perfect time to panic, the only "silver lining" for the rest of us is that the trojan has affected customers from just one online banking system . . . so far.

There is one major problem, though. Find out what it is, and how the trojan works when you read more.

How Many Days Have You Taken Off This Summer?

SavvySugar — Tue, 03 Aug 2010 06:00:38 PDT

I know a sad and shameful secret about SavvySugar readers. Like me, most of you don't take enough vacation. Last year, 44 percent of polled readers said they only took five to 10 vacation days in 2009, while eight percent didn't take any days off the whole year. Considering most salaried jobs offer PTO that stat is upsetting. You earned the time. You should take it. Check yourself: How many Summer days have you seized for yourself thus far?

Citibank iPhone App Users: Update Now

GeekSugar — Tue, 27 Jul 2010 03:47:05 PDT

Attention Citibank iPhone app users: Citigroup announced that its iPhone app contains a security flaw that could store some user data and compromise account security. The information was saved to a hidden file within the app, and includes account numbers, bill payments, and security access codes. Additionally, if you synced your iPhone with your computer at all after using the app, this data may be stored on your computer as well. According to Citi, they don't believe the data was breached by anyone, but is urging users to update the app to the latest version, which corrects the problem.

To learn more, just keep reading.

Do You Do Paperless?

SavvySugar — Mon, 08 Mar 2010 08:00:24 PST

It's hard to keep track of which papers to keep around - bills, credit card statements, investment updates - there's a lot to keep track of. But, there is a way to lighten the load that helps benefit banks, the environment, and you. Going paperless and receiving online statements is an easy way to save trees, save banks some cash, and help you stay organized online without the clutter of excess documents at home.

Still, according to SmartMoney, only two percent of checking account users and 16 percent of credit card users have gone paperless, while most consumers stick to the paper route. Even while going paperless can protect against identity theft, as long as you're using secure Internet connections and virus-protected computer software, most are resistant to change up their routines. To help get customers on board, banks may be offering reward incentives, or on the flip side, charging a small statement fee for users who won't get online. For me, paperless means a lot less mess and tracking online is easy, so I'm on board. What about you?

Money Tip: Give Out Your Passwords

SavvySugar — Tue, 21 Jul 2009 12:00:54 PDT

If something terrible happened to you, would your loved ones have to jump through hoops to access your various online accounts? Mine would. I hadn't considered coming up with an online estate plan until a Wall Street Journal article suggested it.

The article recommends a few solutions for making sure your login information is kept safe but is also accessible should you get into trouble, an accident, or worse. The suggestions include giving a lawyer or trusted relative all the information; dividing up different accounts to different people; or storing the information in a safety-deposit box or home safe.

Do you have an online estate plan? How would you go about ensuring your usernames and passwords are safe but accessible?

Avoid These Silly Bank Fees and Save

SavvySugar — Tue, 07 Jul 2009 12:00:23 PDT

You're a pro at avoiding ATM fees and finding free checking, but banks are slapping fees on everything from your standard withdrawal at another bank to helping its customers. Yes, that customer service call could come with a charge. Banks are relying on fee income more than ever, so don't be surprised if your institution starts sticking you with a tab for checking your balance.

The Wall Street Journal identifies 10 fees you should keep an eye on, and while it mentions that you might have some luck asking your bank to waive a fee you catch on your account, wouldn't it just be easier to avoid them in the first place? Two of the fees listed by the WSJ stand out as particularly silly - $2 to $4 fees for visiting a bank teller more than a couple times a month, and $0.50 to $5 for making account inquiries or reordering checks over the phone.

Find out if your bank charges for any of these services; it's relatively easy to dodge them once you're aware. You can take care of most banking business online and make deposits through your bank's ATM.

Do You Know the Exact Balance in Your Bank Account?

SavvySugar — Wed, 17 Sep 2008 06:30:17 PDT

The majority of you check your online account every day and should be pretty familiar with the balance in your bank account. Sometimes it can be painful to look at, but we all need to face the facts sooner or later! Do you know the exact balance or do you have a general estimate of how much cash is available?

Source

Five Reasons People Don't Automate Bill Payments

SavvySugar — Tue, 02 Sep 2008 12:30:35 PDT

Online banking is something most of us couldn't imagine living without, and more than half of Internet users pay at least one monthly bill online. Some of those people pay each bill online by manually entering payment information every month, and the New York Times explored five reasons why these consumers are hesitant to automate their bills.

Errors: Some people worry their bank will make costly mistakes when removing funds from their account, but banks will automatically credit your account for a mistake as long as you inform them within 15 days of receiving a statement showing the error.
Service that won't end.: If you cancel a service and the provider continues accepting automatic payments, it can be difficult to get those funds back. It can be easier to stop automated payments if they're set up through the bank rather than authorizing a biller to withdraw funds from your account.

See three more reasons why people avoid automated bill-pay when you

Expired credit cards.: Expired cards can lead to unpaid bills without a customer noticing immediately, so be sure to call your billers with the new expiration date when you receive your new card in the mail.
Security: Some people are concerned that granting too many companies access to payment information can compromise security. On the other hand, some think nonautomated payments create more security issues.
Complacency: Don't just set it and forget it. Monitor your monthly payments to ensure you're not paying too much for one service and to be sure all your bills are paid.

Source