The Savings Investor

EverBank offers Savings Products linked to Gold, Silver, Foreign Currencies, US Dollar and more

Moderator — Thu, 13 Mar 2008 16:53:00 +0000

EverBank is a prominent online bank which has been offering a wide variety of investing options not found from your typical online bank. Listed below are many of the products currently available at EverBank, although investors should read carefully the disclosures and fine print of each product to fully understand the nature of the bank products.

EverBank WorldCurrency CDs

The EverBank WorldCurrency CDs pay a fixed rate of interest for the lifetime of the CD in local currency. All of the below listed CDs are subject to appreciation or depreciation of the local currency if converted back to US dollars.

Australian Dollar 90-day CD 5.09% yield

Australian Dollar 1-year CD 5.25% yield

British Pound 90-day CD 4.71% yield

New Zealand Dollar 90-day CD 6.14% yield

New Zealand Dollar 1-year CD 6.13% yield

South African Rand 90-day CD 8.24% yield

Swiss Franc 90-day CD 0.50% yield

Swiss Franc 1-year CD 0.75% yield

Click here for more information.

EverBank DollarBull CDs

The Everbank Dollar CDs are similar to the WorldCurrency CD except in reverse. You "borrow" money from a foreign country and benefit if the U.S. dollar appreciates against the currency. DollarBull CDs are available in all major currencies. Again, investors can lose money when converting funds back to US dollars. Click here for more information.

EverBankMarketSafe CDs

The EverBank MarketSafe CDs allow investors to earn a percentage of the upside return on Gold or Silver, while funds are protected from losses if gold and silver depreciate during the lifetime of the CD. The return is determined by an average of the spot price of gold or silver during the lifetime of the CD compared to the spot price at the time of purchase of the CD. Click here for more information. Click here for more information.

EverBank WorldCurrency Index CDs

The Everbank WorldCurrency Index CDs offer a multi-currency CD with returns weighted. Everbank offers a variety of types of WorldCurrency Index CDs which are strategically designed to focus on a specific regional strength, and/or geopolitical and economic development like Commodities, Petrol, or Pacific Rim countries. The returns are subject to the weighted appreciation or depreciation of the underlying currencies when converted back to US dollars. Click here for more information.

EverBank WorldCurrency Access Deposit Accounts Allow investors to earn return in a money market denominated in the currency of their choice. The returns are subject to the weighted appreciation or depreciation of the underlying currencies when converted back to US dollars. Click here for more information.

Chicago-area Bank and New York-area Bank Offering $200 Cash for New Checking Accounts

Moderator — Wed, 12 Mar 2008 14:53:00 +0000

Metropolitan National Bank, located in New York City with three Manhattan branches, is offering $200 free cash for new customers who open up a checking account and establish a minimum $500 direct deposit linked to the account. The bonus is considered interest and will be reported at the end of the year on a 1099 tax form. Account features includes free direct deposit, free online banking, and free online bill payments as well as no ATM fees for worldwide ATM access. The Metropolitan Bank checking account can be opened in person at a branch or online at metropolitanbankny.com.

A Chicago-area bank, MB Financial, is also offering a $200 signing-up bonus for new checking account customers. To earn the $200 bonus customers must have recurring monthly direct deposits to the account. $50 will be credited each month for four months that a direct deposit occurs. The cash bonus will be 1099-reportable at the end of the calendar year. The MB Financial checking account comes with a free MB Debit Mastercard, free online bill payments, and free internet banking. Offer is available only to Chicago residents. Apply at a branch or online at mbfinancial.com.

New Banking Site Mixes High Yield Savings with Social Networking

Moderator — Mon, 10 Mar 2008 22:00:00 +0000

This week marks the launch of Smartypig an online savings account program which uses West Bank for maintaining deposits and the Smartypig.com social network site to allow friends and family to contribute to either public or private savings goals of accountholders. The annual percentage yield on the Smartypig savings account is currently 4.30% with no fees except a $4.95 processing fee for contributing to someone else's savings goal. There is a minimum $25 deposit to start and a maximum $10,000 deposit limit for any 24-hour period. After a savings goal is reached funds can be withdrawn by check ($25 fee), via gift cards from participating retailers, or through a Smartypig Mastercard Debit card.

West Bank, the issuing bank for the savings accounts, is FDIC-insured so the same banking and FDIC rules and regulations apply for the Smartypig account as would any other bank savings account. The 4.30 APY is very high on the list of best savings rates posted at money-rates.com. although depositors can certainly expect the yield to drop if the Federal Reserve continues to lower rates as expected.

As far as security the Smartypig website makes this comment,

"SmartyPig.com is tested and certified daily to pass the HACKER SAFE® Security Scan. HACKER SAFE® is the world’s leading provider of website security services and probes SmartyPig.com daily for known vulnerabilities. SmartyPig.com utilizes the most trusted and secure option for SSL, VeriSign® True 128-bit Extended Validation SSL. This provides the strongest encryption available. SmartyPig also undergoes regular financial and security audits."

The Savings Investor will post more detailed reporting of this savings program after a few months of operation.

5.00% Bank Rate Deal from National City Bank

Moderator — Mon, 10 Mar 2008 14:38:00 +0000

5.00% is looking like a fantastic investment return in this environment of falling interest rates and shaky stock markets. Locking in the 5% return for 4 years might even allow for the funds to be reinvested in an economy that is stronger with more attractive investment options. We don't know how many more 5.00% rate deals we are going to see in 2008 (if any), but National City Bank has extended their 4-year CD 5.00% rate special another few weeks.

National City Bank is a large multi-state bank (branches located in Indiana, Illinois, Kentucky, Michigan, Missouri, Ohio, Pennsylvania and Wisconsin) which has been offering deposit products consistently among the highest yielding in the nation . National City Bank is running a promotion until at least March 22, 2008 in which they are offering three different deposit rate specials as listed below:

Certificate of Deposit Special

Choose your term: 5.00% 48-month CD or 4.00% 24-month CD

Minimum Deposit: $10,000

To qualify for this offer, you must have an existing National City personal checking or savings account (except CDs and IRAs), or open a new personal checking account (except Free Checking) or a Money Market Savings account with $1,500

For more information or to apply call (800) 622-4036 or visit nationalcity.com.

Money Market Savings Special

3.05% Promotional APY guaranteed for 180 days

Offer good for balances of $5,000 or more (with funds not currently on deposit at National City)
Offer good for customers with an existing National City personal checking account or open a new personal checking account (except Free Checking) with a minimum of $1,500.
Easy access to your money at ATMs, online, by phone, or at any of our convenient locations.

For more information or to apply call (800) 622-4036 or visit nationalcity.com.

For more online bank rates visit money-rates.com.

iGOBanking, Capital One Bank, KeyDirect Increase Deposit Rates - Best CD Rates Over 4.25%

Moderator — Thu, 06 Mar 2008 18:39:00 +0000

A number of banks including Acacia Federal Savings Bank, Greystone Bank, National City Bank, iGObanking, KeyDirect, and Capital One Bank have increased their longer-term CD rates. Either the banks are responding to the higher yield on longer term Treasuries or are trying to become more competitive in bringing in more deposits, but either way savings investors can lock-in higher rates than they could one week ago. Rates available today include:

2-year CD rates as high as 4.10% APY

2.5-year CD rates as high as 4.00% APY

3-year CD rates as high as 4.01% APY

4-year CD rates as high as 5.00% APY

5-year CD rates as high as 4.25% APY

7-year CD rates as high as 5.05% APY

10-year CD rates as high as 5.05% APY

Answers about the Government's Stimulus Package Payments

Moderator — Wed, 05 Mar 2008 18:12:00 +0000

There have been a lot of questions about the Who? What? Where? and Why? of the government's stimulus package payment to US taxpayers recently approved by Congress. Here are all the answers provided directly by the Internal Revenue Service on their website:

Starting in May, the Treasury will begin sending economic stimulus payments to more than 130 million individuals. The stimulus payments will go out through the late spring and summer.

The vast majority of Americans who qualify for an economic stimulus payment will not have to do anything other than file their 2007 individual income tax return to receive their payment this year. They will not have to complete applications, file any extra forms or call the Internal Revenue Service to request the payment, which is automatic. The IRS will determine eligibility, figure the amount and issue the payment.

Stimulus payments will be direct deposited for taxpayers selecting that option when filing their 2007 tax returns. Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. For taxpayers who haven't filed their 2007 returns yet, the IRS reminds them that direct deposit is the fastest way to get both regular refunds and stimulus payments.

Basic Eligibility

The IRS will use the 2007 tax return to determine eligibility and calculate the basic amount of the payment. In most cases, the payment will equal the amount of tax liability on the return with a maximum amount of $600 for individuals ($1,200 for taxpayers who file a joint return) and a minimum of $300 for individuals ($600 for taxpayers who file a joint return).

Even those who have little or no tax liability may qualify for a minimum payment of $300 ($600 if filing a joint return) if their tax return reflects $3,000 or more in qualifying income. For the purpose of the stimulus payments, qualifying income consists of earned income such as wages and net self-employment income as well as Social Security or certain Railroad Retirement benefits and veterans’ disability compensation, pension or survivors’ benefits received from the Department of Veterans Affairs in 2007. However, Supplemental Security Income (SSI) does not count as qualifying income for the stimulus payment.

Low-income workers who have earned income above $3,000 but do not have a regular filing requirement must file a 2007 tax return to receive the minimum stimulus payment. Similarly, Social Security recipients, certain Railroad retirees, and those who receive the veterans’ benefits mentioned above must file a 2007 return in order to notify the IRS of their qualifying income.

The IRS emphasized that people with no filing requirement who turn in a tax return to qualify for the economic stimulus payment will not get a tax bill. People in this category will not owe money because of the stimulus payment.

Additional Payments for Parents and Others with Qualifying Children

Parents and anyone else eligible for a stimulus payment will also receive an additional $300 for each qualifying child. To qualify, a child must be eligible under the Child Tax Credit and have a valid Social Security number.

Limitation

To be eligible for a stimulus payment, taxpayers must have valid Social Security numbers. Anyone who does not have a valid Social Security number, including those who file using an Individual Taxpayer Identification Number (ITIN), an Adoption Taxpayer Identification Number (ATIN) or any other identification number issued by the IRS is not eligible for this payment.

Both individuals listed on a married filing jointly return must have valid Social Security numbers to qualify for a stimulus payment.

Eligibility for the stimulus payment is subject to maximum income limits. The payment, including the basic amount and the amount for qualifying children, will be reduced by 5 percent of the amount of income in excess of $75,000 for individuals and $150,000 for those with a Married Filing Jointly filing status.

Individuals who pay no tax and who have less than $3,000 of qualifying income will not be eligible for the stimulus payment.

Wachovia Bank's Way2Save Savings Program with a 5.00% APY

Moderator — Tue, 04 Mar 2008 20:47:00 +0000

Wachovia Bank has a savings program called Way2Save that links a Wachovia checking account to a Way2Save account and credits the account $1 for each check card purchase, automatic debits from your checking account, and online bill payments. To build balances even faster, you can set up an automatic transfer, up to $100 each month, from your checking to your Way2Save account. During the first 3 years of the Program, a special interest rate and Annual Percentage Yield (APY) will be offered and will be: 5.00% APY Year 1 and 2.00% APY Years 2 and 3. The APY on your Way2Save account will change 12 months from the date the first transfer was credited to your account and each 12 months thereafter, during the first 3 years. At the start of year 4, the APY will be the same as the Premium Savings rate in effect at that time. The Way2Save account is a variable-rate account and the rate is subject to change.

Click here to view the Way2Save Calculator and see how much this program can save you. Wachovia Bank has branch offices in over 15 states where the account can be opened or apply online.

Find more Savings Account rates here.
Find more Online Bank Deals here.

Best Sites for Finding Money Market Rates

Moderator — Mon, 03 Mar 2008 04:02:00 +0000

The best sites for finding bank money market rates are those sites that keep it simple and include comprehensive up-to-date information. Surprisingly, Bankrate.com fails both test miserably. Bankrate.com forces the user to go through menu after menu to finally find a money market rate table that is not sorted by the highest rates and worse of all does not include all the banks listed on other sites. Sites where a savings investor can find a high yielding bank money market account include:

Money-rates.com

Bankcd.com

Bankaholic.com

Other sites that are not as comprehensive but with good information on bank money market rates include:

Emoneycentral.com

Gotalkmoney.com

Banx.com

Post your comments and revisions to this below.

Money Market Mutual Fund Safety from AARP, Vanguard, Fidelity, and TIAA-CREF

Moderator — Mon, 03 Mar 2008 03:21:00 +0000

Wells Fargo & Company announced that it has taken a $39 million loss on Structured Investment Vehicles (SIVs) which were used in the portfolios of a number of their money funds. The $39 million is not devastating to company who holds over $106 billion in money market mutual funds, but is another example of money fund managers extending their risk tolerance to grab extra yield in an investment that most investors consider completely safe.

Investors have relied on the historically-stable $1 net asset value that all money market mutual funds quote without much thought of their mutual fund company "breaking the buck". However, when companies like Well Fargo, Bank of America, and State Street Boston are forced to infuse cash into their money funds to stablize the returns then investors need to consider just who is standing behind the $1 price on their money fund as the higher yielding money funds may hold riskier more volatile holdings than those funds yielding less. Fund managers have a lot more discretion than investors may expect in a conservative money fund and have been tempted by the lure of higher yields into mortgage securities and complex investments like the SIVs that have lost value and liquidity. With interest rates falling and competition for cash always intense, fund managers may continue this trend despite the negative publicity generated by companies who have propped up their money funds. Investors with a money fund backed by a large financially strong company may be in a better position to expect their mutual fund to hold a $1 net asset value through any financial catastrophe. The four funds listed below are from large respected companies:

AARP Money Market Fund (3.43% effective yield)

Fidelity Money Market Fund (3.47% effective yield)

TIAA-CREF Money Market Fund (3.65% effective yield)

Vanguard Money Market Fund (3.77% effective yield)

These four companies are not at the top of a list of the highest yielding money funds, but AARP, Fidelity, TIAA-CREF, and Vanguard are four blue-chip companies very likely to stand behind their money funds in the event of financial turmoil.

Government Bond Funds and Inflation-Protected Funds Outperform

Moderator — Fri, 29 Feb 2008 15:53:00 +0000

Government bond funds are a favorite of investors due to the safety of the underlying holdings which are primarily securities issued by the Treasury Department or government-sponsored entities. While normal bond fund managers can buy riskier lower-rated bonds to boost yields, the government bond fund manager is heavily restricted to the type of holdings in their funds. Interest-rate risk is always a factor with bond funds, but in general the shorter the duration of the holdings in the fund the less volatile the returns of the fund will be. Below are some funds which have been identified by Morningstar as out-performing funds:

Short-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturies less than five years.

JP Morgan Treasury and Agency Select (OMBAX) - yield 4.51%, YTD return 2.34%, 2007 return 6.56%, expense ratio 0.65%, minimum investment $10,000
Vanguard Short Term Treasury (VFISX) - yield 4.11%, YTD return 2.63%, 2007 return 7.62%, expense ratio 0.26%, minimum investment $3,000
Vanguard Short Term Treasury (VSGBX) - yield 4.34%, YTD return 2.11%, expense ratio 0.20%, minimum investment $3,000
Fidelity Spartan Short (FSBIX) - yield 4.17%, holds 97% securities rated AAA primarily US Treasuries, average maturity of holdings 2.40 years, 2007 return 7.71%, minimum investment $10,000

Intermediate-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturities typically between five and ten years.

Morgan Stanley U.S. Government (USGAX) - yield 4.48%, holds 100% securities rated AAA primarily U.S. Treasuries and government mortgages securities, average maturity of holdings 6.30 years, 2007 return 6.50%, minimum investment $1,000
Vanguard GNMA (VFIIX) - yield 5.09%, YTD return 1.50%, expense ratio 0.21%, minimum investment $3,000
Fidelity Government Income (FGOVX) - yield 4.34%, YTD return 2.11%, expense ratio 0.20%, minimum investment $3,000

Long-term Government Bond Funds

Funds that primarily invest in U.S. government securities which may include Treasury bills, notes, bonds, mortgage-backed securities issued by government lending agencies and other Treasury securities with maturities typically ten years and longer.

Vanguard Long-Term US Treasury (VUSTX) - yield 4.50%, YTD return 1.58%, expense ratio 0.26%, minimum investment $3,000
T Rowe Price US Treasury Long Term (PRULX) - yield 4.28%, YTD return 1.85%, expense ratio 0.55%, minimum investment $2,500

Another type of fund which has performed well in the last year are inflation-protected funds. These funds are heavily invested in Treasury Department securities and are designed to match the rate of inflation in the US economy.

Inflation-Protection Funds

Fund which specifically target offering a return that exceeds or matches inflation are available for investors who might need inflation protection in their portfolio.

Franklin Real Return A (FRRAX) - yield 3.81%, 2007 return 9.83%, $1,000 minimum investment
DWS Inflation Protected Plus (TIPIX) - yield 4.71%, 2007 return 11.57%, $1,000,000 minimum investment
State Farm Interim (SFITX) - yield 4.39%, 2007 return 7.41%, $250 minimum investment
Hartford Inflation Plus A (HIPAX) - yield 3.83%, 2007 return 11.58%, $1,000 minimum investment
Schwab Inflation Protected Select (SWRSX) - yield 4.26%, YTD return 6.90%, $50,000 minimum investment

Interest Rates and the Fed Inflation Target

Moderator — Thu, 28 Feb 2008 14:58:00 +0000

Fed Chairman Ben Bernanke, a long-time proponent of inflation-targeting, has set a specific inflation target of 1.5% to 2% over three years in a semi-annual FOMC report to Congress. Bernanke and the Fed were thought to have set a target as low as 1% to 2% so the "new" target range gives the Fed a little more leeway on the side of interest rate cuts in the risk of inflation vs the risk of growth debate. The subtle announcement by the Fed of a specific inflation target has been overshadowed by the release of 4th quarter GDP which shows the US economy growing at a 0.6% pace. Overall the economy grew at a pace of 2.2% in 2007 vs the 2.6% rate in 2006. The language of recent statements by Fed officials indicates that the 50-point rate cuts expected at the March meeting of the FOMC can still be expected, although Fed watchers are now predicting and trading on Fed Funds futures contracts at the Chicago Board of Trade is now indicating an expected floor of 2.00% on the Fed Funds rate (currently at 3.00%) before the Fed reverses its trend of lowering interest rates.

Investors looking to park their cash during this cycle of economic slowdown and low interest rates can expect to find more diminishing rates on bond funds, money markets, money funds, CDs, savings accounts, and other fixed-income investments. For the savings-oriented investor, there are many bank deals posted at money-rates.com where investors who open an online bank account can still find 4.00%, 5.00%, and even 6.00% rates and the rates offered on US Savings Bonds have become more attractive when compared to US Treasury yields.

Credit Card Review

Moderator — Tue, 26 Feb 2008 15:50:00 +0000

Online Bank Deals and Reward Programs

Moderator — Mon, 25 Feb 2008 17:21:00 +0000

The days of banks paying below 1.00% on a checking account and are back in force as The Savings Investor found out when polling 100 banks nationwide and finding an average of just 0.88% as the annual percentage yield paid out on a basic low-minimum checking account. However, online banking customers who are willing to shop online for the best bank deals can find:

...Yields as high as 6.26% on Reward Checking accounts

...Yields as high as 5.00% on Long-term Bank CDs

...Yields as high as 4.60% on Bank Savings Accounts

...Yields as high as 4.51% on Bank Money Market Accounts

...Yields as high a 4.51% on Bank Checking Accounts

...Yields as high as 4.30% on Short-term Bank CDs

In addition to the rates offered above by FDIC-insured banks there are a number of local bank deals, special bank offerings, and credit union deals (insured separetely by the NCUA) that can be found online including:

10.00% APY from Shore Bank on their Grand Slam checking account for balances from $.01 to $1,000.

10.00% APY from Affinity Bank on their savings account for kids only (applies to balances up to $500 and only California residents are eligible).

7.00% APY from Patelco Credit Union on their 1-year certificate for new members in the San Francisco area. Federally insured by NCUA not FDIC.

7.00% APY from Premier America Credit Union on their 5-6-7 Certificate for balances between $1,000 and $5,000. A minimum of $20/per week or $80/per month direct deposit is required. Credit union membership requires purchasing $5 Credit Union share and $5 membership fee. Federally insured by NCUA not FDIC.

5.50% intro APY from Amboy Direct on their money market for new customers. Rate valid for 3 months. Offer only applies to New Jersey residents.

5.23% APY from Deseret Credit Union on their 5-year certificate with a minimum deposit of $75,000 and a 5.02% APY for deposits of $500 and over. Credit union membership only open to members of the Church of Jesus Christ Latter-Day Saints. Federally insured by NCUA not FDIC.

5.10% APY from New Frontier Bank on their 9-month CD for Colorado residents. ($95,000 maximum, $1,000 minimum)

5.00% APY from Pentagon Federal Credit Union on their 7-year certificate. Membership includes members (and family members) of the United States Army, Air Force, Coast Guard, Navy, Marines, National Guard, Reserves, Cadets, ROTC as well as employees of the Department of Homeland Security (DHS), Department of Defense, Department of the Army, and the Department of the Air Force. Federally insured by NCUA not FDIC.

5.00% APY from Integrity Bank on their 6-month CD for Georgia residents. ($1,000 minimum)

Interesting reward programs offered by online banks include:

Wachovia Bank's Way2Save Program is a savings progam in which Wachovia Bank will pay up to $300 to customers for Wachovia Bank check card purchases, paying bills online, or seting up automatic debits. Each transaction earns $1 which is transferred into the savings account. Wachovia Bank is listing a 5.00% APY on their site as a first-year bonus for the savings account.

FirstBank is offering new customers at one of their branches in California, Missouri, Florida, Illinois, and Texas a free ipod Shuffle to all customers who open a new checking account with recurring direct deposit before March 1, 2008. The checking account requires a $100 minimum deposit.

LaSalle Bank is offering a $100 bonus to customer who open both a checking account and a savings account and use a new LaSalle Money Card debit card.

OneUnited Bank will award a $50 cash bonus to customers who set up a recurring direct deposit or make recurring purchases with their VISA debit card. Offer expires June 30, 2008.

Flagstar Bank will give new customers a $100 gas card for opening a new checking account. Requries activation of direct deposit of at least $250 a month. Requires bracnh visit in Michigan, Georgia, or Indiana.

Bank of America is offering a $75 bonus to new customers who open a checking with a minimum deposit of $100. Use offer code AOU260108 at a Bank of America branch or online before March 31, 2008 to be eligible for the $75 bonus.

PNC Bank is running a sweepstakes contest with a grand prize of $5,000 and ten first prizes of $1,000. Customers receive one entry per $100 balance increase in their savings account between February 1, 2008 and April 30, 2008. The current rate on the savings account is 0.20%.

Washington Mutual's Savings for Success program is a limited offering in which new customers can sweep a pre-set amount ($25 to $500) from a Wamu Free Checking Account to a Savings for Success account which pays investors a 6.50% APY. Call 866-808-1396 or visit wamu.com to determine eligibility.

Salem Five Bank is offering a $50 bonus for opening a Star Checking or Gold Star Checking account with direct deposit.

More online bank rate deals here
More online bank rewards here

Mortgage Rates Increase

Moderator — Sun, 24 Feb 2008 19:40:00 +0000

A big jump in mortgage rates last week occured after more fears of inflation in the economy persist. The national average on the 30-year Fixed Mortgage rose over 40 points and the national average on the 15-year Fixed Mortgage increased over 20 points. Any sustained increase in inflation could lead to higher US Treasury yields and increases by the Federal Reserve of benchmark interest rates, although at this point economists are forecasting inflation as more of a concern in the third quarter or fourth quarter of 2008. So while we are expecting inflation down the road the US economy is still in a no-growth or negative-growth environment. The chart below provided by HSH Associates shows the historic relationship between the Fed Funds rate and mortgage rates.

The interesting aspect of the chart is the relatively narrow range of 30-year fixed rate mortgage rates when compared to the Fed Funds rate. Market watchers are still convinced that the Fed will lowering rates another 25 or 50 basis points in March, but as we see in the chart even within a upward or downward trend in interest rates - mortgage rates can drift in the opposite direction. This seems to be the consensus of economists who are warning of a steepening yield curve with lower short-term rates and higher long-term rates. Mortages consequently would be expected to drift higher or stay level despite the Fed's intervention.

Revolution MoneyExchange Provides an Alternative to PayPal

Moderator — Thu, 21 Feb 2008 03:56:00 +0000

MoneyExchange is an online money transfer service that allows members to transfer funds among themselves via e-mail. The account balances are held in a FDIC-insured bank, First Bank and Trust in Brookings, South Dakota, that can be linked to other banks accounts. Of course this service is a direct competitor to PayPal, and MoneyExchange even allows users to sell items off their website to other MoneyExchange members similar to the E-Bay/PayPal model.

MoneyExchange Pros:

(1) $25 bonus for signing up
(2) 2-minute sign-up process
(3) free to send money, request money, or receive money
(4) account balances are FDIC-insured
(5) tools to accept MoneyExchange payments off your commerce website

MoneyExchange Cons:

(1) You can only transfer money to other members
(2) $2.50 check withdrawal fee
(3) $35.00 overdraft fee
(4) No immediate withdrawals of funds via wire transfer, both deposits and withdrawals are subject to a delay of a few days
(5) No interest on funds on deposit
(6) Difficulty tracking funds for tax-reporting purposes

MoneyExchange has set-up a great alternative to PayPal with an easier interface and additional features, the question is can you convince your family, friends, or customers to sign-up with you and make this a viable way to transfer funds.

What is the Government Sending to You? Find out with the 2008 Tax Rebate Calculator

Moderator — Tue, 19 Feb 2008 00:53:00 +0000

Online Bank Rates Increase at a Few Banks

Moderator — Mon, 18 Feb 2008 03:07:00 +0000

Online bank deposit rates have been reset upwards at a few select banks in the last week in a surprise move because of the growing expectations that the Fed will lower interest rates another quarter-point or half-point at the March meeting. The vast majority of banks have revised their deposit rates to below 4.00% and even perennial online bank rate leaders, Countrywide Bank and IndyMac Bank, are below 3.50% on many of their deposit rates. T-Bank and Acacia Federal Savings Bank are two of the banks who increased their rates late last week after initially dropping their rates below 4.00% on many terms. Other banks like Evergreen Private Bank and OneUnited Bank have not increased their rates, but have dropped their money market rates and savings rates at a very slow and measured pace. The motivation of the banks to stay at the top of the rate lists posted at money-rates.com is probably the same as in 2006 and 2007 (new accounts and net profit for the bank), but in 2008 bank investors may appreciate the rate boost just a little bit more. Online bank rate deals this week include:

OneUnited Bank Savings Account
5.15% APY, $1,000 minimum

T Bank 2-year CD
4.15% APY, $1,000 minimum

Westsound Bank 2-year CD
4.10% APY, $500 minimum

EverBank checking and money market accounts
4.51% intro APY, $1,500 minimum

Millenium Bank 3-year CD
4.25% APY, $1,000 minimum

Acacia Federal Savings Bank 4-year CD
4.15% APY, $500 minimum

KeyDirect 5-year CD
4.50% APY, $50,000 minimum

more money market account rates here

more checking account rates here

more savings account rates here

more CD rates here

Banks Remain Committed to Reward Checking Accounts

Moderator — Fri, 15 Feb 2008 20:22:00 +0000

The 175-point rate cut in 2008 has wreaked havoc on bank deposit rates with 5.50% and 5.75% online bank rate deals evaporating into 4.25% and 4.50% rate deals. Lost in the shuffle has been that the rates on the nation's top paying Reward Checking Accounts have not fallen by as much. Money-rates.com has a list of banks from over 20 states offering from 4.41% to 6.25% on reward checking accounts. The monthly requirements to be paid the top yield vary from bank-to-bank, but in general include online statements, auto-debit or direct deposit activity, and debit or check card activity.

Reward checking accounts require some work to set up and maintain, but the yields earned can more than pay off for the extra work, especially for large-balance checking accounts where the interest rate differential can be hundreds or even thousands of dollars a year when compared to a local bank's checking account.

Dallas Bank Making A Splash Online

Moderator — Thu, 14 Feb 2008 22:18:00 +0000

T Bank a FDIC-insured bank based in Dallas Texas has increased deposit rates in an aggressive move to match its wide variety of loans available to consumers and make it one of a select number online banks with a full menu of attractive bank rates for online banking consumers on both rates and loans. Beyond the online presence, T Bank is a full service commercial bank in the Dallas-area and offers a broad range of commercial and consumer banking services to small and medium sized businesses, business owners, professionals and individuals. The bank is relatively new having received its charter from the FDIC in 2004. View the bank's financial report from the FDIC here.

Deposit rates include:

T Plus Checking: 3.50% on balances over $1,000,000
T Market Savings: 3.25% on balances over $2,500

1-year CD: 4.12% APY
2-year CD :4.15% APY
3-year CD: 4.15% APY
4-year CD: 4.25% APY
5-year CD: 4.25% APY

T-Bank also offers competitive rates on auto loans, boat loans, recreational vehicles loans, and home improvement loans a variety of loans not available at most online banks. Visit T-Bank for more information.

Warren Buffett helps Interest Rates

Moderator — Tue, 12 Feb 2008 16:04:00 +0000

Bond yields moved sharply higher today after news that Warren Buffett's firm Berkshire Hathaway has offered to assume liability for the municipal bonds of troubled bond insurers. US Treasuries have been a safe haven for investors since last summer when the credit and mortgage markets began to experience serious setbacks. So any news, like today's announcment by Warren Buffett, which is perceived as a partial solution to the nation's credit market woes is likely to fuel a selloff out of Treasuries into other fixed-income securities. The increase in yields in US Treasuries then ripples through the banking and investing world increasing yields on investments tied to US Treasuries and loan rates tied to US Treasuries. Today's yield on US Treasuries vs last week's yields:

90-day: 2.19% vs 2.08%

180-day: 2.06% vs 2.00%

2-year: 1.99% vs 1.89%

5-year: 2.75% vs 2.63%

10-year: 3.70% vs 3.53%

If this trend were to continue we might see some better rates on mid-term and long-term deposit rates as banks reset vs current Treasury yields. Short-term rates are likely to stay low or go even lower as they are more likely to move lock-step with mvoes by the Federal Reserve.

Recession? Americans, economists, itrade.com say yes! Bush and his Administration say No.

Moderator — Mon, 11 Feb 2008 21:07:00 +0000

The US economy will grow in 2008 and avoid a recession despite a lingering housing slump and a related credit crunch, White House economists said Monday. The annual "Economic Report of the President" is claiming that the US economy will avoid recession and grow in 2008 contrary to what a consensus of economists believe. Citing the resiliency of the US economy and the well-publicized stimulus package passed by Congrss the report paints a rosier picture of the economy than that witnessed in a recent AP poll where 61% of Americans believed that the US was already in a recession or the trading at the online predictions market, intrade.com, where futures trading at the site are pricing in a 67% probability of a recession in 2008. The Bush administration's report stated:

"Economic growth is expected to continue in 2008. Most market forecasts suggest a slower pace in the first half of 2008, followed by strengthened growth in the second half of the year"

The report also forecasts that US gross domestic product growth (GDP) would remain at 2.7 percent in 2008 and would be 3.00% or higher in 2009. Treasury Secretary Paulson along for the ride said recently,

"I believe that we are going to keep growing. If you are growing, you are not in recession, right? We all know that"

The question here is can the happy-talk from the Bush administration and the Stimulus package save the day and hold back the tidal wave of consumer skepticism along with the slowdown in the housing and labor market. Any bets?

Capital One's Rewards Money Market Account

Moderator — Mon, 11 Feb 2008 15:33:00 +0000

The Capital One Rewards Money Market Account is a money market account which offers an attractive yield of 3.00% and a program in which airline miles and other rewards can be earned through account activity. The 3.00% yield applies to all balances between $0.01 and $100,000 and higher. The account has no minimum balance fees or monthly maintenance charges and has check-writing privileges for easy trasfer of funds. Account information is online at capitalone.com.

How to Earn Rewards through the Capital One Rewards Money Market

You earn rewards for saving your money. Every month, you'll accumulate 1 mile for each $20 of your average balance for the month. For example, if your average balance for the month is $10,000, you'll get 500 miles for that month. Rewards miles will be posted to your account within 60 days after the end of each month. Also, deposit at least $500 within the first month and receive 2,500 bonus miles. If you already have a Capital One No Hassle Miles Rewards credit card, let Capital One know and the miles from your Rewards Money Market Account are added to your Capital One credit card miles. Redeem miles for cash, travel, merchandise and more either by calling or going online—Capital One will send you more information after you open your account. There's no limit to the number of miles you can earn. Miles never expire for the life of your account, and there are no blackout dates.

source: capitalone.com

Banks Rates on Health Savings Accounts

Moderator — Thu, 07 Feb 2008 19:05:00 +0000

What Are Health Savings Accounts?

Health Savings Accounts (HSAs) were created by Public Law 108-173, the "Medicare Prescription Drug, Improvement and Modernization Act of 2003," signed into law by President Bush on December 8, 2003. Health Savings Accounts will change the way millions meet their health care needs because they are designed to help individuals save for qualified medical and retiree health expenses on a tax-advantaged basis.

Any adult who is covered by a high-deductible health plan (and has no other first-dollar coverage) may establish an HSA. Tax-advantaged contributions can be made in three ways:

(1) the individual or family can make tax deductible contributions to the HSA even if they do not itemize deductions;

(2) the individual’s employer can make contributions that are not taxed to either the employer or the employee; and,

(3) employers sponsoring cafeteria plans can allow employees to contribute untaxed salary through salary reduction.

To encourage saving for health expenses after retirement, individuals age 55 and older are allowed to make additional catch-up contributions to their HSAs. Once an individual enrolls in Medicare they are no longer eligible to contribute to their HSA. Amounts contributed to an HSA belong to the account holder and are completely portable. Funds in the account can grow tax-free through investment earnings, just like an IRA. Funds distributed from the HSA are not taxed if they are used to pay qualified medical expenses. Unlike amounts in Flexible Spending Arrangements that are forfeited if not used by the end of the year, unused funds remain available for use in later years.

source: United States Treasury Department

Banks Paying Good Rates on Health Savings Accounts

For investors not looking to invest their Health Savings Account balances in brokerage accounts, the following banks offer HSA accounts which pay a variable rate of interest. Principal is FDIC-insured up to $100,000.

State Farm Bank - 2.90% APY on balances over $10,000

Principal Bank - 3.17% APY on balances over $50,000 and 3.01% on balances between $25,000 and $49,999

HSA Bank - 3.50% APY on balances over $15,000 and 2.50% on balances between $5,000 and $14,999

First Banking Center - 4.18% APY on balances over $100,000 and tiered yields down to 3.82% APY on balances of between $7,500 and $24,999.

Online Bank and Credit Union Rate Deals

Moderator — Thu, 07 Feb 2008 16:21:00 +0000

Online banks and credit unions are offering deals with with good rates including specials between 3.60% APY and 10.00% APY for online investors. Listed below are some of these Credit Union and Bank rate deals available today. Each deal has it's own restrictions and limitations including balance requirements and geographic requierements. Check with the issuing bank or credit union for further information:

10.00% APY from Shore Bank on their Grand Slam checking account for balances from $.01 to $1,000.

10.00% APY from Affinity Bank on their savings account for kids only (applies to balances up to $500 and only California residents are eligible).

7.00% APY from Patelco Credit Union on their 1-year certificate for new members in the San Francisco area. Federally insured by NCUA not FDIC.

7.00% APY from Premier America Credit Union on their 5-6-7 Certificate for balances between $1,000 and $5,000. A minimum of $20/per week or $80/per month direct deposit is required. Credit union membership requires purchasing $5 Credit Union share and $5 membership fee. Federally insured by NCUA not FDIC.

6.00% APY - 6.25% APY from various banks who are offering Reward Checking programs. Certain monthly requirements must be met to earn APY. See a list of partcipating banks here.

5.50% intro APY from Amboy Direct on their money market for new customers. Rate valid for 3 months. Offer only applies to New Jersey residents.

5.25% APY from Pentagon Federal Credit Union on their 7-year certificate. Membership includes members (and family members) of the United States Army, Air Force, Coast Guard, Navy, Marines, National Guard, Reserves, Cadets, ROTC as well as employees of the Department of Homeland Security (DHS), Department of Defense, Department of the Army, and the Department of the Air Force. Federally insured by NCUA not FDIC.

5.23% APY from Deseret Credit Union on their 5-year certificate with a minimum deposit of $75,000 and a 5.02% APY for deposits of $500 and over. Credit union membership only open to members of the Church of Jesus Christ Latter-Day Saints. Federally insured by NCUA not FDIC.

5.10% APY from Countrywide Bank on their 90-day CD for California residents. Apply online indicate California residency. ($5,000 minimum)

5.05% APY from KeyDirect on their 10-year CD. ($50,000 minimum)

4.90% APY from Countrywide Bank on their 90-day CD all United States residents. ($5,000 minimum)

4.80% APY from ING Direct on their ING Direct Electric Orange checking account with tiered yields of 4.90% (+$100,000), 4.65% ($50,000-$99,999), and 3.15% ($0-$49,999). This checking account from ING Direct is paperless with ING providing a platform to send money to any person or business via electric checks.

4.75% APY from Millenium Bank on their 6-month CD and 5-year CD. Requires branch visit in Chicago area. ($1,000 minimum)

4.51% APY from Everbank on their introductory offer checking account or money market account. ($1,500 minimum)

4.50% APY from Evergreen Private Bank on their 5-month CD. ($10,000 minimum)

4.50% APY from IndyMac Bank on their 90-day CD. ($5,000 minimum)

4.50% APY on Bank of America's 9-month Risk Free CD. This CD includes the ability to withdraw funds without penalty prior to maturity date. ($5,000 minimum)

4.47% APY from Gloucester County Federal Savings Bank on savings accounts balances of $100,000 and over. 90-day rate guarantee.

4.44% APY from Blue Ridge Savings Bank on their 13-month CD. Branch visit in North Carolina required. ($1,000 minimum)

4.40% APY on savings account at E*Trade Bank which can be linked to your brokerage account. ($1 minimum, no fees)

4.39% APY from Blue Ridge Savings Bank on their 3-year CD. Branch visit in North Carolina required. ($1,000 minimum)

4.30% APY from Academy Bank on their 9-month CD. ($500 minimum)

4.30% APY from Kaiser Federal Bank on their 15-month CD. ($10,000 minimum)

4.30% APY from Equity Bank on their 5-month CD. ($1,000 minimum)

4.30% APY from FNBO Direct on their online savings account. (no minimum balance)

4.30% APY from American Bank on their 4-year Flex CD for residents of Iowa, Nebraska, and South Dakota. The Flex CD comes with an option to twice exchange the interest rate for a higher rate on a CD with the same original term should it come available at the bank.

4.25% APY from Superior Savings on their 7-month CD. ($500 minimum)

4.25% APY from Independence Bank on their 5-month CD ($1,000 minimum)

4.25% APY from LaSalle Bank on their online manager's special 4-month CD ($10,000 minimum)

4.21% APY from Century Bank Direct on their 5-month CD. ($1,000 minimum)

4.20% APY from Principal Bank on their 7-month CD term. ($1,000 minimum)

4.20% APY from Armed Forces Bank on their 9-month CD. ($500 minimum)

4.15% APY from Armed Forces Bank on their 18-month CD. ($500 minimum)

4.00% APY from Country Bank on their 5-month CD. ($500 minimum)

3.60% APY from on their 4-month CD. ($5,000 minimum)
3.60% APY from

Zions Direct's Live Auctions on E-Bay

Moderator — Tue, 05 Feb 2008 19:12:00 +0000

The live CD auctions at Zions Direct have been around for a whole and allow visitors to bid on CDs offered by member banks of the Zions Direct progrma. The current issuers are Zions Fist National Bank, Amegy Bank of Texas, National Bank of Arizona, Vectra Bank Colorado, and Nevada State Bank. Recent results have been less than thrilling with market-clearing yields of 3.90% on 1-year CDs, 3.80% on 6-month CDs, and 3.90% on 90-day CDs. While these yields are better than local bank rates and comparable yields on U.S. Treasuries, they are well-below the top CD yields posted at money-rates.com. Still The Savings Investor has noted more than one closing yield which was very competitive so these auctions are worth monitoring.

Zions Direct has also opened up a new E-Bay store at Zions Direct Live Auctions where E-Bay users can bid on a $1,000 Investment Account Voucher. This one a little bit of a head scratcher as the users are bidding the vouchers close to the $1,000 value and in some cases over the $1,000 voucher amount. Zions Direct is trying to open up new brokerage accounts and this may be a good marketing tool as a $1,000 voucher sounds great, but you have to wonder about those winning bids at $995 and higher giving the "winner" in effect a $5 voucher with their new broker. If bidding slows down a bit with this E-Bay store investors may be able to steal a voucher or two at a reasonable price, just don't tell too many people about this promotion!!