Car Insurance Tips for Younger Drivers

The day young people gain their driver’s licence is a big day, a license means increased independence, more freedom, and for many it’s the first major step on the road to the rest of their lives. But gaining a driver’s license also brings with it a large measure of responsibility, both to the driver and to other motorists. Being a licensed driver means adhering to road rules that protect lives. It means maintaining your vehicle so that it’s always in a safe state to travel. And it means having the right car insurance in case the worst should happen.



However, the issue of car insurance can be daunting for many younger drivers as there are many factors involved in insurance companies determining the type and level of cover they will provide you. So here is a quick guide to some key things young drivers should take notice of when seeking car insurance. Following these tips will help you get the lowest premium and the right cover for you.

First, ALWAYS tell insurance companies the truth about the state of your vehicle. If you have made any modifications to the engine or body that are likely to impact the roadworthiness or performance of the car then tell them from the outset. You may end up paying more in the short term via your insurance premiums, but it could save you thousands in the long term if you have an accident and your policy becomes void because you didn't inform them of the changes to your vehicle.

Second, many young people try to put someone else’s name (usually an older drivers) details down as the primary driver of their vehicle in order to gain insurance or to lower their insurance premium. However, as with the modifications issue mentioned above, this isn't a great idea as, if discovered, it can make your insurance void. So always put yourself down as the primary driver, but consider adding a second responsible driver to your policy as this may help your case.

Third, never forget that vehicle type impacts on insurance cost, so when you’re out and about shopping for your first car, put your ego aside and look for cars that insurance companies will favour. Cars with large engines driven by younger drivers pose a greater insurance risk than vehicles with smaller engines, as do high performance cars and older vehicles. Smaller cars can equal smaller risk.

Fourth and final point is to take the time to shop around when looking for car insurance. By comparing insurance provider’s policies side by side you can find the right level of cover that suits your budget and driving needs whilst also minimising your risk. A few quick tips when considering a car insurance provider are to not assume that third party insurance is cheaper than comprehensive insurance, to check carefully how much you'd really be paying when you make a claim, and to consider the difference it would make to park your car in a secure location rather than on the street.

Image Credit
Image courtesy slgckgc / flickr.com

Tips for Saving for your Dream Holiday

Have you been delaying your dream family holiday due to a lack of funds? Are you in need of a vacation but don't want to risk racking up any debt? Taking family holidays are important because it gives the family time to relax and enjoy time together. What could be better than creating precious shared moments with loved ones safe in the knowledge that you're not breaking the bank to do so. With some personal budgeting and a plan to save up, your wait for a dream family holiday may be over sooner than you think.



Plan Out Your Vacation
Having a clear idea of the costs of a vacation is imperative. You will have to consider the costs of lodging, airfares, petrol, rental cars, food and drinks and any extra excursions. List out all the major items and think about a number of alternatives as well. Maybe to free up some money for fun family activities you can use your credit card award points or instead of staying at a hotel you could stay at a friend or relatives house or rent an apartment. Be thorough and list all the activities you want to do, assigning a cost to each. If you buy ticket passes online for places such as Dream World, look out for special discounts and reduced prices. Also, use aggregator websites to compare prices for flights and hotels.

Set Up a Regular Saving Schedule
Once you know the cost of your vacation and the time of year that you want to go, you can figure out how much per month you need to save towards your dream holiday. It is also a good idea to set up a separate savings account to collect the travel funds. This will allow you to save rain or shine if you have an automated transfer into this account. Should the monthly saving amount seem too much, you can delay your vacation or find more ingenuous ways to cut back on your expenses.

How to Save on Daily Expenses
To reach your monthly saving target, you will have to scrutinize your spending habits and probably make some sacrifices. Tell the family that everyone will need to chip in to pay to help save for the family holiday. Here are a few simple tips to save up:

• Cook your meals and avoid grabbing a coffee on the go. This is probably the most effective way to save money. Pack simple but healthy lunches for your kids rather than have them eat at the school cafeteria – you probably don’t like the ingredients the school uses anyway! Avoid the temptation of a coffee from your local barista and make your own.
• Plan your meals ahead. Try to plan out your meals a week ahead and if you can, match your meal plan with the items on the supermarket weekly specials. Buy seasonal fruits and vegetables and buy dry goods in bulk. Cut out and use your newspaper coupons even if they look crumpled.
• Cut down on some monthly luxuries. Look through your monthly bills and see if there is a recurring cost you can eliminate: For example, cut out your cable TV subscription and stream videos online instead. Limit yourself to eating out once a month instead of once a week.
• Have a yard sale. You must have a few lovely items in your closets you don’t need any more. Clothes, books, DVDs, and old toys can easily be sold at a local yard sale
• Stop buying for 6 months. What about necessities? Of course, buy those but nothing extra. Do not be tempted by sales and consider swapping items you need with friends and neighbours.

With a budget, a saving plan, some self-control and support from each family member, you can easily achieve your dream holiday. You can fully enjoy your holiday and be proud of the fact that you have not incurred any extra debt. The family not only shares some great holiday memories but also learns to save more regularly, helping you save towards your next vacation!

Image Credit
Image courtesy of phalinn / flickr.com

Win an iPad or Amazon GC

PFStock is giving away your choice of an Apple iPad mini or $300 Amazon gift card. Over the years, PFStock has given away coupons, Coke Rewards codes, USB flash drives, books, financial software, gift certificates, and copies of tax software. Now in order to thank my loyal readers, PFStock is holding its biggest giveaway ever: your choice of a new Apple iPad mini (16GB, WiFi version) or a $300 Amazon gift card!

Update: This giveaway is now over. A winner was selected and notified by Email. Please click on iPad Giveaway above for the latest contests. Thank you for your interest in PFStock.

If you have a problem leaving a comment or any other question, please Email me. Good luck to everyone!

DC

The Fiscal Cliff

The PR folks over at TurboTax (Intuit) recently sent me a message with information about the upcoming "Fiscal Cliff". I know that a lot of readers are concerned about how potential tax law changes will affect their taxes in the future. I have heard reports of people selling their stocks now (in 2012), so that they can "lock in" any gains they have at the current tax rates. The news is filled with stories about the "Fiscal Cliff" or of "Taxmaggedon".

But, the tax experts advise us not to panic. They have broken it down for you to understand how these tax law changes will affect your taxes. Here is an excerpt of what the experts at TurboTax have to say about the topic:

Let’s start with the facts.

Every year, a small portion of the IRS tax code expires, requiring Congress to pass laws to extend them.   This year is no exception. There are a handful of tax laws that will expire if they are not extended by December 31.

So what’s on the table?

Alternative Minimum Tax (AMT) Patch

The AMT was originally created as a special tax for the wealthiest taxpayers.  Today the AMT usually hits taxpayers who have a household income over $75K and are married with more than two kids.

This is where a lot of the hubbub is coming from because unless the AMT is patched by Congress by the end of the year, an estimated 26 million households will, for the first time, face the AMT, which threatens to add an average of $3,700 onto taxpayers’ bills for the current tax year.

But the reality is that, historically, Congress has patched the AMT every year, since 1969, without fail.

Tax Extenders

The “Tax Extenders” refer to a broad set of temporary tax laws.  Here is a short list of the higher-impact tax deductions and credits that are included in the “Tax Extenders” package currently on the table:

Tuition and Fees Deduction:  This tax deduction allowed some college students or parents to deduct education expenses related to schooling, including tuition, books and other supplies.   TurboTax data shows that about only 2% of our taxpayers claim this tax deduction.

Residential Energy Property Credit:  This tax credit increased the energy tax credit for homeowners who made certain energy efficient improvements to their existing homes.  TurboTax data reveals that only an estimated 4% of our taxpayers claim this tax credit.

Educator Expense Deduction:  This is a $250 tax deduction available to teachers K-12, who purchase classroom supplies.  TurboTax data shows that only about 3% of our taxpayers claim the Educator Expense Deduction.

While only a small percentage of TurboTax customers claim these tax deductions and credits, be assured that no matter what is decided, TurboTax will be fully up to date with the latest tax laws shortly after decisions are made.

Bush-era Tax Cuts

As the name implies, the “Bush Tax Cuts” were tax cuts first passed in 2001 under George W. Bush and then extended in December 2010 by President Obama

The tax deductions and credits included in the Bush Tax Cuts do not impact your 2012 taxes.  They won’t come into play for another year, when you file your 2013 taxes. What you could see next year is changes to your paycheck, starting in Jan. 2013, due to changes in 2013 tax brackets.

So when will we know for sure? No one knows. But it’s not uncommon for tax laws like these to not be extended until midnight on Dec. 31.

You can read the entire article on the TurboTax blog here:

Don’t Fear the “Fiscal Cliff”: TurboTax Gives You the Tax Law Facts

Note to Commenters: If you represent a company such as Intuit, H&R Block, Microsoft, etc., please leave your contact information or send me an Email (my Email address is listed in the sidebar) to let me know that you left a comment. If I cannot determine that your comment is authentic, it will be deleted.

The information in this article was provided by TurboTax (Intuit). PFStock does not provide tax or investment advice. I encourage readers to consult with a tax adviser if they have specific questions about their taxes.

PFS

The Golden Rules of Investing

Earlier this year some folks from the U.K. came to our house to make videos in which I pontificated about passive investing. Some of the material will be included in longer pieces on their site but short snippets are also available there.

Here is one on my views of the two most important rules of investing:

The Golden Rules of Investing (Video)

The Capital Asset Pricing Model in Brief

Here is a very short video made at our home by the folks at sensibleinvesting.tv. In it, I explain the essence of the Capital Asset Pricing Model. As one can imagine, I have said more (much more) elsewhere.

Here is the link:

What is the Capital Asset Pricing Model?

Magical Thinking about Pension Plans

This year I was fortunate enough to be awarded the Lillywhite Award for extraordinary lifetime contributions to Americans' economic security. Dallas Salisbury, President of the Employee Benefit Research Institute which sponsors the award, presented it to me at the Pensions and Investments Defined Contribution Conference in San Francisco, California. The following is a slightly edited version of my invited remarks thereafter.

I started studying pension funds when most people had defined benefit plans. No decisions. You worked, you got paychecks. You retired, you got smaller paychecks, You died, your partner got even smaller paychecks. He or she died, the paychecks stopped.

Now defined benefit plans survive mainly in the government sector. Social Security of course. And pension plans for government employees. But they can teach us something about defined contribution plans.

Take CalPERS. It covers non-teaching state and many local government employees in California. And, officially, it is substantially underfunded. This is based on the assumption made for funding by the CalPERS actuaries that their portfolio of bonds, stocks and exotica will return exactly 7.5% every single year. Moreover, they value assets at an average of past values.

Magical thinking. Bad economics.

Almost every economist who has looked at similar pension funds concludes that assets should be valued at market and that liabilities should be valued by determining the cost of a low-risk government bond portfolio that could provide the funds to pay the benefits already earned. For CalPERS this portfolio would be primarily in TIPS since their benefits are mostly indexed for inflation.

When the liabilities are valued with good economics, the extent to which CalPERS is underfunded is not just substantial – it is woeful.

But this is a Defined Contribution conference. Employers in the DC world have no liabilities and mark assets to market – in some cases every day. No magical thinking. Good economics.

Yes, but...

Sometimes in projecting the amount that should be contributed to a defined contribution plan there is magical thinking. We or our employees may assume the portfolio will earn 7.5% or so per year for sure. The market may go down, but if so it will feel sorry for us and go back up in short order.

But the good news is that we are getting better in helping employees get a sense of both expected return and risk in the accumulation phase.

But not always in the decumulation phase.

As the baby boomers enter retirement, every part of the financial industry is lusting after their money. Financial advisors have strategies for managing investments and spending. Insurance companies have traditional annuities and guaranteed withdrawal plans. Mutual funds have retirement income products. Employers have extensions of 401(k) plans. Everyone wants a piece of the action.

For good or bad reasons, left to their own devices, retirees invest relatively little in traditional annuities, foregoing the significant advantages of pooling mortality risk.

Moreover, thanks to Chairman Bernanke and his counterparts around the world, low-risk investments currently offer paltry nominal returns and negative real returns for all but the very longest horizons.

What's an investor to do? A frequent answer is this. Invest in risky securities, which should provide higher returns. Spend on the assumption that returns will be 7.5% (or so) per year. Not to worry, returns may vary, but they will average out in the long run. Once again, magical thinking and bad economics.

So what should financial professionals, do? One answer is to use Monte Carlo analysis with a sensible market model to generate possible scenarios for future investment returns, then use the results to help investors understand the true implications of alternative decumulation investment and spending strategies.

Admittedly, neither the creation or the communication of such ranges of outcomes is easy. But investors need to understand that if they take market risk, someone will be exposed to that risk. If something bad happens, it is going to happen to someone. It might be them or it might be their beneficiaries. Their financial advisor, investment company or employer may get smaller fees, but won't bear the majority of the impact. And if insurance companies take market risk, they do so at their peril or, worse yet that of the taxpayers who might have to bail them out.

Pooling can't help – when the market crashes it takes almost all the players with it.

If your investments are subject to market risk, so are the prospects for your spending and/or that of your beneficiaries. Even the cleverest financial strategy can't magically make market risk disappear.

So, I implore all those who help people save and invest for retirement and then use their savings sensibly in retirement. Please avoid magical thinking and bad economics. Employees and retirees deserve better.

Money Market Rates 10/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.95% Ally Bank Online Savings
0.90% American Express High Yield Savings
0.80% Discover Bank Online Savings
0.75% ING Direct Orange Savings
0.65% Urban Partnership Bank Online Savings
0.65% FNBO Direct Online Savings
0.40% HSBC Advance Online Savings
0.25% Western FCU Money Market
0.15% Chase Plus Savings
0.10% Citibank Savings Plus

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 10/11/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

It seems the Ally Bank Online Savings is still at the top position on this list while increasing their interest rate to 0.95%. This month, I am dropping Travis CU, Patelco CU, and E*TRADE from my list. These three institutions have been at the bottom of the list for several months, and I don't feel it is worthwhile to track them anymore.

The frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Money Market Rates 9/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.95% Ally Bank Online Savings
0.90% American Express High Yield Savings
0.80% Discover Bank Online Savings
0.80% ING Direct Orange Savings
0.70% Urban Partnership Bank Online Savings
0.65% FNBO Direct Online Savings
0.40% HSBC Advance Online Savings
0.25% Western FCU Money Market
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account
0.05% E*TRADE Complete Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 9/3/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

It seems the Ally Bank Online Savings has regained the top position on this list while increasing their interest rate to 0.95%. Rounding out the bottom of this list are two credit unions, Travis CU, and Patelco CU, and E*TRADE. It seems that I've proven my point about these credit unions, and will likely drop them from future posts. I also wanted to comment on how far E*TRADE had fallen in the past few years. In January 2009, E*TRADE Complete Savings was at the very top of the list with a 3.01% rate. It has now fallen to the very bottom.

These frequent changes show how changeable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

8 Ways to Save Money on Things You Use Every Day

No one wants to spend more money than they have to on anything, but everyone wants to have enough money to spend on non-essentials every once in a while--or perhaps they're a little short of making a car payment or putting money down on that cool home security system. Paying the list price for anything should not be acceptable to today's consumer, and there is always a way to cut costs.

1. Cut down on prescription costs. Medications don't necessarily cost the same at every pharmacy. Big box stores like Costco and BJs have discounted pharmacy services that don't require membership. If you are uninsured or don't have enough to cover your prescription costs, ask your doctor about samples or coupons (many drug companies hand these out, especially for new drugs), or check to see if you qualify for prescription assistance.
2. Put coupons on your card. Many grocery stores post coupons on their websites. Sign up for an account using your store rewards card number, select the coupons you want to use, and when you check out at the brick and mortar store, the coupons will be applied when the cashier scans your card. Kroger is a major retailer that uses this system that also lets you accumulate points to save on gas.
3. Put coupons on your smartphone. If your keychain is getting crowded with store savings cards, there are apps to lighten the load. With an app like Cardstar, simply select the store from a list and enter your card number and redeem those digital coupons by having the cashier scan the card barcode from your smartphone's screen. To go beyond what the store offers, there are many coupon apps available. Be aware that some store scanners don't do a good job of reading barcodes on phones, so you may end up being more of an inconvenience to the people behind you in line than that shopper with the sack full of crumbled paper coupons.
4. Sign up for Amazon's Subscribe & Save. With discounts on Amazon's listed prices off of a long list of popular household items and free scheduled delivery, it's a no-brainer…except that you will need to use your brain when there is a need to change the schedule date or anything else about your order. Bonus: Save on gas and avoid impulse purchases (who can pass up a ShamWow and the latest Enquirer?) Fresh Direct and Peapod offer similar services.
5. Time your T.P. purchases. Most major grocery chains discount paper goods up to 40% around the 1st and 15th of each month. Time it right--you don't want to run out on the 2nd or 16th!
6. Make your own cleaning products. Makers of kitchen and bathroom cleaning sprays now brag that their products contain lemon or vinegar, and there is good reason to brag: Those two common household items have excellent cleaning and disinfecting properties. So why pay $6.99 for a bottle of water, vinegar, and blue coloring when you can make it yourself? A simple search for DIY cleaning products will save you money and keep even your most germ phobic guests happy.
7. Be persistent. Discount clothing stores like Marshall's and TJ Maxx are excellent places for finding genuine brand-name goods at deep discounts. If you don't see what you like, find out when new shipments come in and shop on those days, before the other savvy shoppers grab up all the good stuff.
8. Skimp only when necessary. For many essentials, a discount is always a good thing. There are some things in life, though, that should not be compromised. For example, getting the grain-heavy store-brand dog food will save you money at the grocery store, but it could cost you much more in veterinary bills. The cheapest toilet paper might seem like a bargain at checkout, but once your family starts complaining, you'll wish you'd spent those extra few dollars. Fresh produce that is grown locally and in-season is more nutritious than produce that has been treated with chemicals so that it merely survives shipping. Above all, don't cut back on your health and mortgage insurance; the money you put into those bills is always well-spent.

When making a shopping list, always keep the big picture in mind: A healthy, happy family is always your number one priority.

About the Guest Author
Al Natanagara is a writer, journalist, and blogger whose career includes stints with ZDNet, CNet, CBS, LexisNexis, and law enforcement. He is a husband and father who can't bring himself to pay full price for anything.
(image credit: Stock.xchng user ba1969)

7 Investing Mistakes That Make You Look Dumb

When you watch the anchors and analysts on TV business channels, you may tell yourself that you can be as smart as they are when it comes to investing. In truth, you should probably set a more modest goal: investing without doing anything really stupid. Because it's a lot easier to lose your fortune with a few ill-advised trades than it is to earn it back.



What is the best strategy? Keep your wits about you, stick to fundamentals, and avoid these seven dumb investing mistakes.

1. Putting all of your eggs in one basket. The first three rules of investing are diversify, diversify, and…oh yeah. Diversify! You'd think everyone would follow this advice, but you'd be wrong. Remember: Don't hold an inordinate amount of stock in your company or industry. And aim for between ten and twenty stocks in your portfolio.
2. Being impatient. Another rule that non-day trading investors tend to forget is to take the long view. In other words, patience tends to reward investors more so than reacting to every hiccup, feint, and swerve shown by the market. Resign yourself to the fact that you will probably have a bad day, week, month, or year - but panicking and making knee-jerk changes will hurt you in the long run.
3. Placing more importance on your losses than your gains. This one is actually a perfectly natural thing to do. Studies have shown that individuals tend to react more strongly to a loss of a certain amount of money than when they gain the same amount. This makes us "loss averse" investors, which isn't always a good thing. Be sure assign the same weight to your portfolio's ups as you do its downs.
4. Placing too much importance on weird market events. This one could also be called "Letting the specter of the 2008 market crash color your every investing decision." Though that was an unusual event, it's not likely to happen again anytime soon (especially across all sectors). So avoid the temptation to yank your money out at the first sign of bad economic news.
5. Ignoring "small" fees. You know all those tiny little expense ratios on your investments? Pay attention to them. Even a small difference can suck out thousands from your portfolio over a lifetime. So monitor your expense ratios constantly, do a few background checks on how much you're actually paying in fees, and don't be afraid to change funds or investment houses to keep costs low.
6. Thinking that you can consistently beat the market. It's okay to trade on a hunch once in a blue moon. But unless you're a data-intensive expert in a given type of fund or investment, you should probably stick to portfolios that follow market averages. The best investors are the ones who realize that they don't know everything
7. Getting greedy. Sure, a 15% to 20% rate of return sounds fabulous. If it were easy and risk-free, everyone would be doing it. But more often than not, you're shooting yourself in the foot if you try to achieve an ROI greater than the market average. That's because there's no such thing as a sure thing.

Image credit: articles.businessinsider.com

About the Guest Author
Chris Martin is a freelance writer who writes about topics ranging from auto insurance to consumer finance to home improvement.

Money Market Rates 6/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.85% American Express High Yield Savings
0.84% Ally Bank Online Savings
0.80% Discover Bank Online Savings
0.80% ING Direct Orange Savings
0.80% HSBC Advance Online Savings
0.70% Urban Partnership Bank Online Savings
0.65% FNBO Direct Online Savings
0.25% Western FCU Money Market
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account
0.05% E*TRADE Complete Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 6/12/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

At the top of the list is now American Express High Yield, which has beat out Ally Bank Online Savings by only 0.01%. Rounding out the bottom of this list are two credit unions, Travis CU, and Patelco CU. I've questioned the motives of those who have encouraged others to transfer their money from banks to credit unions during Bank Transfer Day. The credit unions on my list are on par with Citibank, which is really the bottom of the heap, as far as banks are concerned.

While it seems that interest rates are still continuing to trend downward, all of the these interest rates have stayed the same since last month. I think that it is a good time for people to consider moving their money around if they are not happy with their current banking institution. But, based on this analysis, I won't be transferring my funds to a credit union.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Money Market Rates 5/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.84% Ally Bank Online Savings
0.80% Discover Bank Online Savings
0.80% ING Direct Orange Savings
0.80% HSBC Advance Online Savings
0.75% American Express High Yield Savings
0.70% Urban Partnership Bank Online Savings
0.65% FNBO Direct Online Savings
0.35% Western FCU Money Market
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account
0.05% E*TRADE Complete Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 5/13/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

The current favorite, Ally Bank Online Savings, has stayed at the at the top of the list. This is mainly because banks like Discover Bank and American Express have lowered their interest rates in recent months, while Ally has remained the same since my last update. Rounding out the bottom of this list are two credit unions, Travis CU, and Patelco CU. I've questioned the motives of those who have encouraged others to transfer their money from banks to credit unions during Bank Transfer Day. The credit unions on my list are on par with Citibank, which is really the bottom of the heap, as far as banks are concerned.

While it seems that interest rates are still continuing to trend downward, all of the these interest rates have stayed the same since last month. I think that it is a good time for people to consider moving their money around if they are not happy with their current banking institution. But, based on this analysis, I won't be transferring my funds to a credit union.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Comparing Brokerages

I haven't written about online brokerages in a while now. The landscape for online brokers is constantly changing. Nevertheless, I wanted to present to my readers a comparison of some of the major online brokers out there.

Since I am mostly interested in stock trades (as opposed to options, mutual funds, or bonds), I have compiled a list of brokers sorted by the commission that they charge for stock trades. Using this handy table, readers can see the comparison, as well as any bonus offers that are currently being offered for new accounts:

Brokerage	Stock Trade Commission	Special Offers and Bonuses
Options House	$3.95	Free Dell Monitor, Free Morningstar Investing Newsletters, free one-year subscription to FT.com
Zecco	$4.95	Zecco
Scottrade	$7.00	Scottrade.com
tradeMonster	$7.50	tradeMONSTER
Options Xpress	$8.95	get $100 when you open an optionsXpress account
E*TRADE	$9.99
TD Ameritrade	$9.99

I have confirmed the commissions with each brokerage (as of 4/23/12). Personally, I have accounts with TD Ameritrade, E*TRADE, and OptionsHouse. A while back, I got a free Dell Monitor by opening an OptionsHouse account. The OptionsHouse Free Kindle Fire offer also looks good to me, but is no longer available.

I also requested information from Scottrade, but never opened an account at Scottrade.com. If anybody has their opinions on these brokers, please share them here.

DC

Allurez Jewelry Review

How familiar are you with the idea of online jewelry shopping? Comparison shopping and bargain price blowouts are only some of the perks associated with shopping online for jewelry. Let's not forget that when you buy online, you never have to deal with pushy salesmen. You can even design your own fine jewelry items from the comfort of your own home. But there are a few things that you must consider before shopping online for things like diamond jewelry.

The most important thing to consider is the reputation of the company. A company that has created a good name for itself will usually have people who have good things to say about it. This is why it's important to check out online forums and see what people are saying about the online jewelry stores at which you want to shop. In regards to this, I was always surprised to find that Allurez Jewelers had such great reviews. Whenever I search through Allurez jewelry reviews that I find online, people always report that the customer service was friendly and the entire process of buying a fine jewelry item is smooth. Allurez even has reps that will help you place an order online.

But here are some more reasons why buying jewelry online can be a very rewarding experience. Allurez has a jewelry education section. This is very important. I find that I need to be as informed as I can about anything that I purchase. This is especially true when it comes to buying diamond jewelry or precious metal items. Any reputable online jeweler must offer a jewelry education section. In one way, it suggests that you are getting quality items, since you are already informed about the item you want to purchase.



Some sites offer free shipping, easy returns, and secure online shopping. This is something that Allurez offers as well. Free shipping is altogether convenient, but the easy returns and secure online shopping are a must. This is because you need to be able to return an item if you order the wrong size. I've done this a few times, hassle free. Also, secure online shopping ensures that your credit card number and other personal information are safely processed.

There's one more thing I like about Allurez jewelers. They offer conflict-free diamonds. This is important to me. I don't want to wear a diamond around my finger knowing that it was obtained by harming someone.

Overall, Allurez is a great place to shop online. Their website is easy to navigate. Plus, their diamonds are of exceptional quality and come at unbelievable prices. So with a wide selection of items to choose from, high customer satisfaction and BBB accreditation, don’t wait another moment. Go to Allurez.com today.

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Disclaimer:
This is a sponsored post. The sponsor, Allurez, is solely responsible for its content.

Money Market Rates 4/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.84% Ally Bank Online Savings
0.80% Discover Bank Online Savings
0.80% ING Direct Orange Savings
0.80% HSBC Advance Online Savings
0.75% American Express High Yield Savings
0.70% Urban Partnership Bank Online Savings
0.65% FNBO Direct Online Savings
0.35% Western FCU Money Market
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account
0.05% E*TRADE Complete Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 4/10/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

A one-time favorite, Ally Bank Online Savings, has regained its position at the top of the list. This is mainly because banks like Discover Bank and American Express have lowered their interest rates, while Ally has remained the same since my last update. Rounding out the bottom of this list are two credit unions, Travis CU, and Patelco CU. I've questioned the motives of those who have encouraged others to transfer their money from banks to credit unions during Bank Transfer Day. The credit unions on my list are on par with Citibank, which is really the bottom of the heap, as far as banks are concerned. But at least Citibank will offer you up to a $400 bonus for opening a Citi Checking account.

It seems that interest rates are still continuing to trend downward. While the majority of these interest rates have stayed the same since last month, none of them has increased. I think that it is a good time for people to consider moving their money around if they are not happy with their current banking institution. But, based on this analysis, I won't be transferring my funds to a credit union.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

The Benefits and Disadvantages of Credit Unions vs. Big Banks

As the economy continues to struggle during these harsh times, big name banks have been losing credibility and customers. More and more people are leaving large corporate banks for the appeal of a more personal experience and more individualized handling of their finances. Big name banks have been under the spotlight off and on for many years now with charges of unscrupulous business ethics. Choosing the right bank for your financial needs is extremely important in today's society. Before putting your money and trust into any old banking system, you should carefully examine and research your choices so that you can make the most appropriate selection for your lifestyle. With credit unions steadily on the rise among the general public, it is important to know both the pros and the cons of these banking organizations.

The Pros of Credit Unions
1. Member Owned: This is one of the major ploys that smaller credit unions have. Every member that has an account with a credit union is a partial owner of the organization. This means that you are better able to have some say in the business proceedings of a credit union. As a member of the credit union, you get to vote on who you want to serve on the Board of Directors for the union. This means that you have some control of over the way in which your bank runs.

2. Nonprofit: Big name banks are businesses. They are run on the principle of making a profit. In this way, there are times that "big banks" may consider their need to make a profit before they consider their customers best interests. Credit unions are nonprofit organizations that are community oriented. Because they are not in search of making a profit, credit unions can often offer services at lower costs.

3. Better Interest Rates and Loans: For the most part, credit unions are able to offer higher interest rates on savings accounts, lower interest rates on loans and mortgages, and better loan services overall. These better rates are available to members because the credit union is nonprofit. The profits that the bank does make are applied back to the member through better interest rates and loan services.

Cons of Credit Unions
1. Accessibility: The biggest drawback to using a credit union over a small bank can be accessibility. In general, there are fewer branches, ATMs, and online options for credit union users compared to corporate banks. This is not always the case where many smaller credit unions offer ATM access at numerous non-affiliated credit union ATMs. Because credit unions are community owned and operated, they are not as easily accessed nationwide. Also, due to their smaller size, 24 hour service is not often available and the online accessibility of these credit unions can be of lower quality that with big banks.

2. Less Horsepower: Another drawback to small credit unions has to do with needing the "horsepower" of the big name banks for your portfolio. So, if you have a high-powered portfolio that may require some of the ploy that big banks have in the financial world, you should keep that in mind. Small credit unions are great choices for the average person looking to open a checking and savings account, make a few money market investments, and take out a simple loan or two. However, if you have a portfolio that requires a high-yield savings and money market account, the big name corporate banks may be your best option.

About the Guest Author:
This is a guest post by Nadia Jones who blogs at accredited online colleges about education, college, student, teacher, money saving, movie related topics. You can reach her at nadia.jones5 @ gmail.com. The opinion expressed is that of the guest author. If you are interested in writing a guest post, please contact PF Stock at the Email address listed in the sidebar.

Money Market Rates 2/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.90% Discover Bank Online Savings
0.90% American Express High Yield Savings
0.85% Urban Partnership Bank Online Savings
0.84% Ally Bank Online Savings
0.80% ING Direct Orange Savings
0.80% HSBC Advance Online Savings
0.70% FNBO Direct Online Savings
0.35% Western FCU Money Market
0.15% E*TRADE Complete Savings
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 2/10/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

Discover Bank and American Express are currently tied for the highest interest rate of 0.90% among the banks that I'm tracking. A one-time favorite, Ally Bank Online Savings has dropped a few positions in my list. Rounding out the bottom of this list are two credit unions, Travis CU, and Patelco CU. I question the motives of those who have encouraged others to transfer their money from banks to credit unions during Bank Transfer Day last month. The credit unions on my list are on par with Citibank, which is really the bottom of the heap, as far as banks are concerned.

It seems that interest rates are still continuing to trend downward. The majority of these interest rates have stayed the same since last month, but none of them has increased. I think that it is a good time for people to consider moving their money around if they are not happy with their current banking institution. But, based on this analysis, I won't be transferring my funds to a credit union.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

DC

Money Market Rates 1/12

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

0.90% Discover Bank Online Savings
0.90% American Express High Yield Savings
0.85% Urban Partnership Bank Online Savings
0.84% Ally Bank Online Savings
0.80% ING Direct Orange Savings
0.80% HSBC Advance Online Savings
0.70% FNBO Direct Online Savings
0.40% Western FCU Money Market
0.15% E*TRADE Complete Savings
0.15% Chase Plus Savings
0.10% Citibank Savings Plus
0.10% Travis CU Flexible Money Market
0.06% Patelco CU Money Market Account

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates.

Rates are believed to be accurate as of 1/16/12. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included a few credit unions in the list so that readers have a comparison point with banks.

Discover Bank and American Express are currently tied for the highest interest rate of 0.90% among the banks that I'm tracking. A one-time favorite, Ally Bank Online Savings has dropped a few positions in my list. Rounding out the bottom of this list are two credit unions, Travis CU, and Patelco CU. I question the motives of those who have encouraged others to transfer their money from banks to credit unions during Bank Transfer Day last month. The credit unions on my list are on par with Citibank, which is really the bottom of the heap, as far as banks are concerned.

It seems that the general interest rate trend is down. I was especially disappointed that the interest rates for Citibank and Chase were so low. Since I still have significant funds in these institutions, I think that it is time for me to consider moving some money around to other institutions, but I won't be transferring the funds to a credit union.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

PF Stock writes on many different financial topics and for many publications and specializes in personal finance, especially bank loans.