Can a Checking Account Pay a Higher Interest Rate than a Savings Account?
Most people think of a checking account as an account that does not earn interest. You would assume that to earn any interest, you must put your money into a savings account. However, this ABC news story indicates the contrary. They found some checking accounts that actually pay you interest – some as high as 4.25%.
However, there is a catch. There are requirements for the accounts such as these:
(a) you must make 10-15 debit card purchases per month
(b) you must pay bills online
(c) you must receive online statements instead of paper statements
No More Free Checking Accounts?
Liberals argue that the Credit Card reform that President Obama passed is a good thing. However, there is another side to the story. Specifically, banks will be forced to find a way around the legislation. Even though they can no longer simply charge overdraft fees and have limits on interest rate changes, banks have found and will find ways to make up for lost profits.
Specifically, Donald Griffith of AmericasNewsOnline.com foresees the following changes:
(1) banks will begin charging for checking accounts. Everybody has gotten accustomed to getting free checking accounts. In fact, it isn’t really even a point of differentiation when a bank advertises “Free Checking Account!”
Donald believes that banks will now be forced to charge customers a monthly fee to manage their money in a checking account.
(2) Interest Rate Increases – secondly, banks will be forced to increase interest rates on credit cards and loans. Even those people with above average credit will suffer. Those who were used to being rewarded with low interest rates because they managed their money well, are going to suffer along with all the other consumers who use credit cards.
President Obama’s Credit Card Reform Goals – for years the credit card companies had a field day with creative lending practices. Often hidden in fine print were methods and tactics that credit card companies used to drastically increase your interest rates and other methods to get the most money out of customers.
Some President Obama’s goal of ending “predatory lending” practices have been accomplished. CNN reveals three other goals yet to be accomplished.
Can you thrive in a bad economy? Carmen Ulrich tends to think so. Carmen appeared on the Today Show to discuss ways that anybody can thrive in the down economy. She has also written the “Recession Thrival Guide.”
YouTube video on How to Thrive in a Recession
The first tip is to pay your mortgage before your credit cards. Surprisingly, people who are struggling to make their payments pay their credit cards first!
The second tip is to try to negotiate with your lender if you cannot make the payments. Stubborn lenders? Contact the National Federation of Credit Counseling. Even though going through credit counseling will put a ‘black mark’ on your credit report, it is better than having a foreclosure on your credit history.
Third, get a fixed rate mortgage.
Fourth, dump the gas guzzler. Even buying a Hybrid may not be a smart decision since the technology is new and the prices are still at a premium. Finally, never pay retail for a new car. She says get a CPO (a certified pre-owned card).