FINANCIAL SERVICES >> FINANCIAL SERVICES HOT TIPS

Financial Services Hot Tips

Whether you're buying a car or a house, or looking for the right place to put your money, there are numerous options to choose from. How can you be sure that you're getting what you need? How can you be sure that you're getting a good deal? Follow the links below for some tips.

Checking Accounts

When looking for a new checking account, consider the following:

• Is there a minimum balance required and what happens if your balance drops below that minimum)?
• Is there a charge for writing checks? Is there a maximum number of checks you can write in a month free of charge?
• Does the checking account earn interest?
• Can you check your account balance on the Internet or over the phone? Is there a cost to do this? How often is that information updated?
• How much do the checks cost? When you open the account do you get any free checks
• Can your savings account be used to automatically cover checks which may exceed your current checking account balance? This is often called overdraft protection. If it is available, how much does it cost?
• What are the overdraft charges if you write a check that bounces?
• Does the checking account have debit cards?

Savings Accounts

When looking for a savings account, consider the following:

• What is the interest rate on the account?
• Is there a minimum balance?
• Is there a time frame connected to it? If so, it's probably a CD
• Is there a transaction fee, such as when you deposit or withdraw money?
• What other fees are associated with the account?
• How often is the interest added?

Credit Cards

Credit cards allow you to buy now and pay later. They are basically short-term loans at high interest rates (the credit card issuer views them as high-risk, and therefore charges high interest). When choosing a credit card, consider the following:

• What is the interest rate?
• What is the minimum monthly payment? Remember, however, that if you always pay the minimum monthly payment, it may take years for you to pay the debt off.
• Is there a grace period before the issuer starts charging interest on a purchase?
• Is there an annual fee?
• What is the penalty for a late payment?
• What is the limit on the card? Does it meet your needs?
• What security measures are included in the card to ensure no one but you can use it?
• What perks come with the card? For example, with each purchase made with the card, do you get points toward airline flights? Can you earn other gifts by using the card?
• Does the card have an introductory period? If so, how long is it? What is it's rate? What is the interest rate when the period is over?

Debit Cards

Debit cards look like credit cards but are more like checkbooks. At the time of purchase, debit cards deduct money from a checking account, just like a checkbook. There are no interest charges because you are in essence paying "cash."

In these cases, its better to use a credit card instead of a debit card. If someone were to get your debit card number and information, and start using it, money would immediately be taken out of your checking account. With a credit card, you would see on your bill if someone was using your card before any money went out of your pocket.

Loans

There are many types financial institutions that offer many different loans with many different terms and time frames. It's important to find the best one for you and that will probably mean that you need to do some research. It's easy and tempting to accept the first loan offer you get, especially when you're looking at something like a mortgage or car loan. But you should be cautious. Make sure you shop around to fin the best deal for you. When getting a loan, consider the following:

• What is the interest rate?
• How much will your monthly payments be?
• Are there any penalties for paying off the loan early?
• What closing fees (often called garbage fees) are there?
• What other fees are associated with the loan?
• What is the overall cost of the loan? (how much interest will you pay over the loan's life?)
• Once again, with loans it is important to shop around and find something that best fits your needs.

Money Market Accounts

A money market account is similar to a savings account, however there are some differences. First, the interest rates of a money market are tiered. That means that as the amount in the account surpasses pre-determined levels, it earns greater interest. Second, many money market accounts provide the access that is more restricted than a regular savings account. There may be withdrawal limitations.

CDs and Bonds

Certificates of deposit (CDs) and bonds are very similar. Both are long-term investments, and their rates of return are generally close each other. When you buy a bond or put money into a CD, you commit that money for a particular period of time, for a certain return at the end. If you take the money out of the CD or cash the bond before the period is over, you suffer a financial penalty. The primary difference between CDs and bonds is that you can sell a bond if you need cash, whereas CDs are generally not transferable to another person. CDs, however, may be more convenient for the average consumer to open or close.

If you need more information or assistance with your financial services decisions, our team of professionals are standing by to be of service to you.

There are many misconceptions about finances. The average American spends more time planning their family vacation than they do their family’s finances.