I am probably late to the game, but I just realized that Capital One has purchased ING Direct. Cue the sad violins. I have loved ING for years, and my hope with Capital One coming in and buying ING is that they leave everything exactly the same. I love the fact that there is no minimum balance on the savings accounts, you can have multiple accounts, and it’s just so easy to use. I love being able to log in and see all of my accounts right there, all displayed in one screen. I can transfer money between accounts and from my external bank.

If Capital One starts changing things, I’ll have to look for a new bank. I’ve thought about just consolidating all of my accounts into one so I’d be able to meet a required minimum balance, but I don’t think that would work for me. I like it when they are separated on the screen and all have individual nicknames.

I’ve banked with ING for many years now, and I’ve never had a problem. Whenever I’ve called, the representatives have been very helpful and friendly. It’s been an awesome experience!

Do you bank with ING? Do you think Capital One taking over will change things?

Last year, the goals I set were purely financial. It was hit or miss on whether or not we actually met them, but overall I’m happy with our finances and we’re debt free so that’s pretty much all that matters. This year, instead of making the goals all about money, I decided that I would set some different goals that included life experiences. After all, that’s the real reason we spend our money wisely: to enjoy life. With that said, here are some goals I’d like to work toward this year.

1. Keep up with the clutter and declutter 365 items from our house this year. I won’t be alone in this challenge, so that’s good to know! I’m a little intimidated by the number, but I am thinking once I get started it really won’t be too bad.

2. Pay at least $3,000 down on the principal of our mortgage. The mortgage is a debt that doesn’t hang over my head quite like the student loans did, but it’s still debt nonetheless. It feels really good to see the principal balance go down, so this is something I would like to do.

3. Travel to somewhere fun and exciting. Even though it will cost us money, I think it’s money well spent. We value going to new places and exploring more so than we enjoy new Stuff, so I think the hardest part of this will be deciding where to go (and then parting with the money!) I’d love to be able to take a couple trips with Mr. Money, but I think one big trip will have to be all that we take this year. Who knows, this may be the last kid free vacation we’ll be able to take!

4. Get knocked up. Self explanatory. I’m hoping this year we finally get pregnant. If it doesn’t happen in 2011, we’ll probably look into other ways to become parents, and maybe even through adoption. I hope that we can have at least one child of our own. Keep your fingers crossed for me if you will!

5. Live on one salary. I think living on Mr. Money’s salary alone will be good practice for what will happen if goal #4 finally is accomplished. When we have a baby, I plan on staying at home to raise the baby, so living on one salary will be good practice. With my salary, we can save it for the future and maybe even tackle some fun home improvement projects.

6. Make more money from side hustles. Whether it be that I actually start making soap and selling it, or I pick up some freelance writing, I would like to increase my income aside from my 9-5 job. It would be awesome if I could increase my side hustle income enough to go part time at my 9-5 job!

7. Stay debt free! After paying off credit card debt, student loan debt, and a car loan, I’m over having debt! It feels amazing each month to not have the worry of all those different payments coming out of our checking account each month. I love having fewer and fewer bills!

Those are the things I’d like to tackle this year. I think they are all goals that will make me happy when they are finally accomplished.

Here’s to a happy and successful 2011!

Since the Regulation E went into effect in August, Banks have taken a huge hit to their fee income. While the regulation is great for the consumers’ wallet, it hasn’t helped the banking industry. Before the regulation, banks were making a lot of money with fee income, and that went away when banks stopped allowing customers to overdraw their account without their consent. As an effect of the regulation and the drop in fee income, I’m betting that free checking accounts will soon become a thing of the past. I’ve got a couple theories of what will happen to free checking accounts.

Current Checking Accounts

Currently banks offer many different types of checking accounts. The most popular type is the free checking, which normally doesn’t require a minimum balance. Other checking accounts may provide benefits, such as free checks, free cashier’s checks and money orders, and bonus rates on certificates of deposit. While these type of checking accounts provide additional benefits that the free checking accounts don’t, they also normally require minimum balances.

“Free” Checking Accounts in the future

As it’s been in the past, free checking accounts have had no stipulations, and many came with a package of benefits. Free online banking, online bill pay, a free check card, no minimum balance, and no monthly maintenance fees. In the future, I think banks will start charging for some or all of these items. My guess is that banks will either require minimum balances or charge for items ala carte. For instance, if you want online banking, it may cost you $1 a month. Add on bill pay, and that may be another $1 a month.

As it is currently stands, we have two checking accounts. I use one as our “secret account” that I transfer half the mortgage payment into each time my husband gets paid. If it does change where they require a minimum balance, I’ll probably end up opening an Electric Orange checking account with ING. I’m hoping there will always be free checking accounts, because fees are not something I want to pay each month!

I’m probably going to look into other banks’ checking accounts.  Of course, they could change their stipulations too, so I may be in the same boat as if I just stay with our current bank, so who knows if that will do me any good.  I may just go ahead and open the ING Electric Orange checking so I’ve got that account established in the event that I want to make that our main account.  The only drawbacks are that the ATMs for ING are not close to our house at all, so I’d have to do weird things to avoid ATM fees.

I’m really hoping that banks don’t start charging outrageous fees just to have checking accounts.  It’s necessary for so many people to have a checking account, and I know that no one wants to pay just to keep an account at a bank.  Bank fees are no fun at all!

Have you heard anything about free checking accounts changing?

The other day I was talking to my mother about how all of our savings and emergency fund is at ING.  I have been an ING customer for years, and have had nothing but good experiences with them.  They offer a really competitive rate on their high yield savings accounts- of course it’s not much now, but what savings accounts are paying a good rate now?  I really like banking with ING because they don’t require a minimum balance and no monthly fees.  I’ve also got a few accounts set up with them for specific purposes, like car insurance, escrow, and our emergency fund.  It helps me keep those expenses separate and make sure I have enough money for each event.

My mother was concerned about the safety of using an online bank.  She doesn’t do online banking at all and I don’t think she ever will.  That’s fine.  She just said I may want to think about moving my money to a brick and mortar bank because it’s safer.  With all the bank failures over the past couple years, I don’t know if I trust a brick and mortar bank over an online only bank like ING.

Of course, after she mentioned it I got worried.  What if my information got stolen and someone logged in and added a new bank account that wasn’t actually mine?  They could steal all my money.  Of course, I’m not too worried about someone transferring money to my main checking account, as I would notice a large deposit in my checking account right away.

I know that online banks work hard at keeping their software updated to prevent stolen identities and hacked accounts.  I truly hope no one I know ever has a bad experience with the safety of online banks.  With ING when you log in you have to enter your customer number, wait for your special image and phrase to show up, and then enter your pin using the keyboard numbers.  It’s just a 4 digit pin versus a regular password, and that concerns me.  I haven’t had any problems for over 5 years, so I don’t think I should be so concerned.

I guess my generation is used to online banking and doing things online that involve money.  Pretty much everyone I know that’s my age uses online banking, paypal, and other means to move money online.  It’s just the norm, so there really isn’t much apprehension about the safety of online banking.  I know that people are concerned about the safety of online banking but they trust that the banks are doing everything they can to protect their clients’ identities and account information.

I hadn’t really given it a second thought to banking strictly with ING as far as our savings accounts go.  I haven’t had any problems with security, so why worry now?  I have to admit that I have been considering switching our account (or at least part of it) to a brick and mortar bank in town.

Do you use an online only bank like ING? Are you concerned about the safety of online banks?

Working at the bank provides many benefits, and one of them is that it’s really easy to keep an eye on my bank accounts.  I can just pull up our checking accounts, credit card, and mortgage all with the click of a button.  We keep our savings account at ING so I have to log on to another site to be able to check our savings accounts.  I noticed that I check our bank accounts with our main bank a lot more than I do our savings accounts because it’s much more convenient.  After I checked our checking accounts for the sixth time today, I realized that maybe that was a little obsessive.

When I didn’t work at the bank, I checked our checking account about once a day.  I would check off the transactions that posted to the account and then check the balance.  It worked very well for me!  Now I check our checking accounts at least a few times a day.  I think I probably could cut that down to once a day!

With our savings accounts, I check them roughly once a week.  We have a few different accounts at ING with different purposes, so some of the accounts don’t change as much (emergency fund) as some of the others (car insurance fund).  I think that checking the savings accounts once a week is reasonable.

With our mortgage, I check that online about once a month to make sure that the payments have been posted correctly.  Of course, the mortgage doesn’t change as frequently as the other accounts so it’s nice to not have to keep close tabs on that account.

When you have more bank accounts it’s more to keep track of.  I think as long as you work out a system that works for you, that’s the most important part.

How often do you check your bank accounts?

There’s a new law going into effect on August 15, 2010.  It’s called Regulation E (Reg E), and deals specifically with overdrafts.  Basically now you have to choose to Opt In or Opt Out of overdraft protection.

Currently many banks will approve your debit card even though there is not enough money in your account.  Effective August 15, every banking client will be opted out of overdraft protection unless they choose to opt in. Should you opt in or opt out?

Opt In for Overdraft

If you choose to opt in for overdrafts, your card may get approved even though the funds are not available in your checking account.  This may be good in the event of an emergency where you are stuck with absolutely no cash and your car has broken down, or even to avoid embarrassment when you’re out to dinner with a date and your card would normally be declined.  On the other hand, opting in to overdraft protection would not be a good idea for someone who doesn’t balance their checkbook.  I definitely wouldn’t recommend opting in if you don’t keep up with your balance.  There’s no sense in risking overdraft fees!

Opt Out of Overdrafts

Opting out is just what it sounds like: no overdrawing your checking account with the debit card.  Don’t be overly confident, though: recurring debit card transactions are an exception. If you’ve let your car insurance company charge your debit card, the transaction may be approved even though the funds are not available.  Otherwise, if you don’t have the money in your account, your card won’t get approved to cover the transaction. This is definitely helpful in the fact that you’re less likely to get overdraft fees.

If you don’t do anything, you’ll automatically be opted out of overdraft protection.

Are you going to opt in or opt out of overdraft protection?  Why?

I’m always looking for new high yield savings accounts as part of my job working at the bank. I think it’s always good to know where the competition stands. I’ve decided I’m going to start sharing some of my findings here, in hopes that someone can benefit from my research. Here’s my EverBank Review:

EverBank Review

EverBank is a bank that I hadn’t heard of, but decided I’d like to check out. EverBank is headquartered in Jacksonville, Florida and is FDIC insured, and carries a wide array of financial products, from checking accounts, money market accounts, high yield savings accounts, and even certificates of deposit.

If you’ve got a decent emergency fund build, you want to look into EverBank.  In 2007, EverBank was named “Best of the Breed” by Money Magazine.  They continue to thrive even in today’s volatile market.

Yield Pledge Money Market Account

EverBank does have a $1,500 minimum opening requirement and if you don’t keep $5,000 in the account, you may be assessed a fee (around $9).  You could use this account to stash your emergency fund or even saving for a house or car.

EverBank does have a three month introductory rate on its money market account, and it’s higher than almost any other high yield savings account I’ve seen currently.

You can direct deposit into an EverBank account.  EverBank’s routing number is 063092110.

You can learn more or open an Everbank account.

That’s my EverBank Review

Awhile back, I talked about switching our main bank account to ING. I didn’t end up switching. After thinking about it and the steps I’d have to go to switch everything over, I chickened out. Then I heard that they do a credit check for the Electric Orange account, and I didn’t want my credit run, so that sealed the deal.  Recently I received a postcard in the mail for a $50 ING Electric Orange bonus and that made me question my decision.

The deciding factor was that the check credit before they open an account.  I’ve got good credit, so what’s the problem?  Like many people, I don’t like the idea of having my credit checked more times than absolutely necessary.  I’m so fickle I don’t know when I’ll need to use my credit so I like to keep the credit checks down.

Another factor of why I haven’t switched is because my hubby’s employer doesn’t offer direct deposit, so I’d still have to keep my accounts at my current bank open.  Not only would I have to keep up with those accounts, I’d have another checking account to keep up with!

I don’t know if I’m being reasonable or being silly.  I don’t foresee any instances in the very near future where we’ll need to use our credit, so should I even worry about that? *knock on wood* Is it really that big of a deal for a hit on your credit score when they run credit?  I don’t know.

Do you think I should switch? Am I worrying about the credit check for nothing?

photo credit: mynameisharsha

One of the most important pieces a banking relationship is funds availability. I know it may sound pretty basic, but there are many, many people out there that don’t understand funds availability. Funds availability impacts everyone with a banking relationship. Funds availability is when you can use the money that you deposit.  Funds availability can greatly differ from bank to bank, so I encourage you to check with your bank to find out what their policy is.  I’m going to give you a few examples of how it can work.

-A cash deposit is made into a checking account.  The funds are available immediately, and can be withdrawn, checks can be written, and the debit card may be used.

-A deposit is made with a check from another bank.  The bank is local, so the money will be available to use the next day.

-A deposit is made with a check from a non-local bank.  The funds take a few days to clear.

-Large deposits may be subject to a Regulation CC Hold (Reg CC Hold).  It can take up to 7 days to clear.

-Electronic payments and direct deposits normally act as cash deposits.

-Money orders and official checks/cashier’s checks are NOT the same as cash and will be treated as a check.

-Some banks have what they call “cutover” during the day, say at 3PM.  Any deposits made after 3 PM will be credited on the next business day.

One of the most prevalent reasons people go overdrawn is due to not understanding their bank’s funds availability policy.  At my bank, if you make a deposit and the same day write a check that exceeds your “available balance”, you’ll get an overdraft fee.  Being aware of the policy can save you money and trouble in the long run.

What is your bank’s funds availability policy?

photo credit: Hello Turkey Toe

Have you ever deposited a check and it’s been returned, or the amount has been altered in your checking account? You can avoid this hassle by ensuring the checks you are depositing have been correctly filled out with a process known as “DDAMP-ing” the checks.  It’s a process that tellers use before they accept a check for deposit to an account.

Here’s what it stands for:

D: Date- Ensure that the date on the check is no older than six months old.  After that, many banks consider the checks stale dated and will not accept them for deposit.  Some business checks have certain restrictions on the front such as “Must be cashed within 90 days”.  Make sure you negotiate these checks fairly quickly.

D: Drawee Bank- Make sure that it looks like a legitimate bank.  If you are ever unsure of the bank, check with a quick Google search to make sure the bank is real.  You can also call to verify funds if you are worried about the check bouncing.

A: Amount- Make sure that the amount in the small box on the right matches the written amount under the payee line.  The legal amount of the check is the amount that is written out in words.

M: Maker- Make sure that the maker has signed the check.  You wouldn’t believe how many checks we receive that are not signed by the maker!  Of course these should notbe accepted for deposit by a teller.

P:Payee- Make sure that the check is payable to the correct person.  For instance, if the check is supposed to be payable to you as a person for some plumbing work you did for a friend, make sure they didn’t make it out to “Bobby John Plumbing” because it cannot be deposited into a personal checking account.

Do you check your checks before depositing?  What are some errors you have caught lately?