Results tagged “banks” from iVillage - House Calls
If you're shopping around for a bank, you may be wondering how to decide which one is the best place for your money. The good news is that as long as the bank or credit union you choose is backed by the FDIC or National Credit Union Administration, your money will be safe even if the bank fails. The bad news, however, is that rates and fees can vary widely from bank to bank, so you'll need to shop carefully to get the best return. CNBC personal finance expert Carmen Wong Ulrich has some tips for finding the right bank for you.
Find more information on coping with the economy with our Bail Yourself Out resources.
You may have heard rumors that your mortgage lender will lower your interest rate if you can prove your home is worth less than you owe. Carmen Wong Ulrich explains this urban myth.
If you have a financial question you'd like Carmen to tackle, post it here in the comments or email us directly at ivcommunity@mail.ivillage.com
Watch Carmen Wong Ulrich's 'On The Money' Weeknights at 10PM ET on CNBC! Find more information on coping with the economy with our Bail Yourself Out resources.
Banks offer so many different types of accounts, it can sometimes be hard to decide which one is the right one for you. Before you choose a checking account, Carmen Wong Ulrich has some advice.
Watch what our expert has to say:
Have a question for Carmen? Post it on our message board.
For more advice watch Carmen Wong Ulrich on 'On The Money'.
Watch what our expert has to say:
Have a question for Carmen? Post it on our message board.
For more advice watch Carmen Wong Ulrich on 'On The Money'.
My bank just got bought by another, larger bank. Of course, my first thought was "What does that mean for my money?" Fortunately, Carmen Wong Ulrich, host of CNBC's 'On The Money', answered that very question from iVillager misshelms:
"I still have a job, DH (dear husband) still has a job; we pay our mortgage and all other bills. We've been trying for years to get ahead with our credit cards. We're finally there. We now can put away money because we have no more credit card payments. I'm just not sure if it's really a good idea to keep using our bank because it's going to be bought out by another bigger one."
Watch Carmen's answer:
Have a question for Carmen? Post it on our message board.
For more advice watch Carmen Wong Ulrich on ' On The Money', weeknights at 8 pm ET.
More tips for Bailing Yourself Out
"I still have a job, DH (dear husband) still has a job; we pay our mortgage and all other bills. We've been trying for years to get ahead with our credit cards. We're finally there. We now can put away money because we have no more credit card payments. I'm just not sure if it's really a good idea to keep using our bank because it's going to be bought out by another bigger one."
Watch Carmen's answer:
Have a question for Carmen? Post it on our message board.
For more advice watch Carmen Wong Ulrich on ' On The Money', weeknights at 8 pm ET.
More tips for Bailing Yourself Out
Every time I turn on the news they're talking about the economy. But even with all this coverage, it's easy to get confused. Should I stay with my bank? Is my 401k safe? All these questions keep swirling around in my mind and in the minds of many other iVillagers. That's why I'm so happy to welcome a new guest blogger. Each week, Carmen Wong Ulrich, host of CNBC's 'On The Money', will be answering questions from the iVillage community.
This week Carmen answers iVillager huffjoann's question: "Turning on the news is uber-depressing lately... yet so necessary to figure out what the heck is going on. So has this made you more concerned with the state of affairs at your primary financial institution? Are you diversifying more? Consolidating? Sitting tight?"
Watch Carmen's answer:
Have a question for Carmen? Post it on our message board.
For more advice watch Carmen Wong Ulrich on ' On The Money', weeknights at 8 pm ET.
More tips for Bailing Yourself Out
This week Carmen answers iVillager huffjoann's question: "Turning on the news is uber-depressing lately... yet so necessary to figure out what the heck is going on. So has this made you more concerned with the state of affairs at your primary financial institution? Are you diversifying more? Consolidating? Sitting tight?"
Watch Carmen's answer:
Have a question for Carmen? Post it on our message board.
For more advice watch Carmen Wong Ulrich on ' On The Money', weeknights at 8 pm ET.
More tips for Bailing Yourself Out
This week, Tracy Davidson, consumer reporter for WCAU in Philadelphia, answers the question of whether your money is safe in the bank and in your 401(k).
Is Your Money Safe?
by Tracy Davidson
iVillage user thegymmom asks: Are we truly in trouble? Should we take our money out of the bank and hide it? Is it as scary and dire as the media is predicting? Or is it all hype, just another way to help the rich keep their money?
Are We In Trouble?
First, we truly are in trouble, for a number of reasons. Fortunately or unfortunately, our economy runs on credit. The credit markets are frozen, which basically means that banks have stopped lending money to each other and to major customers. And that trickles down. Small businesses depend on credit; some use it to make payroll. Consumers need credit to buy homes, cars and make purchases. We are all impacted by this crisis, so it needs to be solved.
Should We Take Our Money Out of the Bank?
But I really want to address your second question about taking your money out of the bank and hiding it. No, no, no! Here's why:
The money in your bank is safe! If your bank is FDIC insured, your money is insured. What does that mean? The FDIC insures accounts up to $100,000 per depositor, per insured bank. So if the bank fails, your money is still safe. If you have more than $100,000 in the bank, the bill that passed the senate Wednesday night would raise that insurance to $250,000.
What About Your 401(k)
You also shouldn't stop contributing to your 401(k). The markets are volatile right now and I know people are panicking, but don't. Your 401(k) money could be your greatest retirement asset, so it's important to keep it intact. The match of money provided by your company more than makes up for any hits you're taking right now in the market. It's free money!
When it comes to your 401(k), the best thing you can do is make sure your asset allocation is right for your financial plan. Do you have the right amount in stocks versus mutual funds and bonds? If you're not sure, ask your HR department to explain it.
Finally, whatever you do, don't take money out of your 401(k), because you'll be penalized for it. If you really need money, find another way to get it. If you think there is no other way, seek professional financial advice before you touch your 401(k).
Lessons Learned?
What can we, as individuals, learn from all of this? That it is dangerous to live on credit. We live in a world—or we did—where we could buy a house bigger than we could really afford, where we could buy a car that was nicer than we could afford, or where if we didn't save, we just said, "credit card." It's a dangerous way to live. Remember the days when, if we wanted something, we actually planned and saved until we had enough money? That's what we need to get back to.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
Is Your Money Safe?
by Tracy Davidson
iVillage user thegymmom asks: Are we truly in trouble? Should we take our money out of the bank and hide it? Is it as scary and dire as the media is predicting? Or is it all hype, just another way to help the rich keep their money?
Are We In Trouble?
First, we truly are in trouble, for a number of reasons. Fortunately or unfortunately, our economy runs on credit. The credit markets are frozen, which basically means that banks have stopped lending money to each other and to major customers. And that trickles down. Small businesses depend on credit; some use it to make payroll. Consumers need credit to buy homes, cars and make purchases. We are all impacted by this crisis, so it needs to be solved.
Should We Take Our Money Out of the Bank?
But I really want to address your second question about taking your money out of the bank and hiding it. No, no, no! Here's why:
The money in your bank is safe! If your bank is FDIC insured, your money is insured. What does that mean? The FDIC insures accounts up to $100,000 per depositor, per insured bank. So if the bank fails, your money is still safe. If you have more than $100,000 in the bank, the bill that passed the senate Wednesday night would raise that insurance to $250,000.
What About Your 401(k)
You also shouldn't stop contributing to your 401(k). The markets are volatile right now and I know people are panicking, but don't. Your 401(k) money could be your greatest retirement asset, so it's important to keep it intact. The match of money provided by your company more than makes up for any hits you're taking right now in the market. It's free money!
When it comes to your 401(k), the best thing you can do is make sure your asset allocation is right for your financial plan. Do you have the right amount in stocks versus mutual funds and bonds? If you're not sure, ask your HR department to explain it.
Finally, whatever you do, don't take money out of your 401(k), because you'll be penalized for it. If you really need money, find another way to get it. If you think there is no other way, seek professional financial advice before you touch your 401(k).
Lessons Learned?
What can we, as individuals, learn from all of this? That it is dangerous to live on credit. We live in a world—or we did—where we could buy a house bigger than we could really afford, where we could buy a car that was nicer than we could afford, or where if we didn't save, we just said, "credit card." It's a dangerous way to live. Remember the days when, if we wanted something, we actually planned and saved until we had enough money? That's what we need to get back to.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
The economic news lately has been a little frightening. It seems like banks are failing all over. This week, Tracy Davidson, consumer reporter for WCAU in Philadelphia, talks about what you can do to protect your money.
Wall Street Woes! What Should I Do?
by Tracy Davidson
Lehman Brothers filed for bankruptcy. Bank of America acquired Merrill Lynch. And the market is taking a dive.
In such situations, what's the best financial advice for average folks like you and me? Actually, financial planners are giving the same advice now as they did when the crisis began. And for the sake of saving your money, it's worth shouting from the rooftops!
Be smart, don't panic
Smart financial planning is always long range. Don't react with your emotions.
If your bank is FDIC insured, don't worry
FDIC insures up to $100,000 per depositor, per insured bank. If you have more than that, FDIC provides separate insurance coverage for deposit accounts held in different categories. Meaning: If you have single accounts in your name, your joint accounts are looked at separately. If you have questions about that or want to see if your bank is FDIC insured, check online or call 877-275-3342.
The best thing you can do
Protecting your house should be your number-one priority in tough economic times, so take care that you are making responsible moves with your money. Are you borrowing too much? Carrying too much debt? Really take a good, hard look at how you manage your money. How do you spend and save? If a domino collapsed in your world, would you still be able to pay the mortgage or make your car payment? Or are you extended to the max? Are you saving as part of a personal financial plan with goals and objectives (the kids' college education, your retirement, etc.)? If there's anything you should do in the wake of all this—this is it!
If you have money invested
As always—not just when the market is tanking—make sure your portfolio is well diversified. Review your investments on a regular basis, even your 401(k) allocations. And seek professional help. I can't possibly pretend that I know everything there is to know about investing. That's not what I do for a living. So what do I do? I seek out experts who can help me make the best decisions for my family in the long term—not just not gut-reactions. Does it cost a lot of money to seek professional help? No. There are plenty of free financial planning seminars. Ask your local bank or call your local Consumer Credit Counseling Service office and ask.
Have faith
If you're like me, you get overwhelmed and panicked when you feel helpless. You are not helpless. Take control of what you can: your finances. Even if you just take one small step, like paying more than the minimum of your credit card bills, that's something. That's a first step toward being more responsible with your money and your future. Take a deep breath and start. You have more control than you think.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
Wall Street Woes! What Should I Do?
by Tracy Davidson
Lehman Brothers filed for bankruptcy. Bank of America acquired Merrill Lynch. And the market is taking a dive.
In such situations, what's the best financial advice for average folks like you and me? Actually, financial planners are giving the same advice now as they did when the crisis began. And for the sake of saving your money, it's worth shouting from the rooftops!
Be smart, don't panic
Smart financial planning is always long range. Don't react with your emotions.
If your bank is FDIC insured, don't worry
FDIC insures up to $100,000 per depositor, per insured bank. If you have more than that, FDIC provides separate insurance coverage for deposit accounts held in different categories. Meaning: If you have single accounts in your name, your joint accounts are looked at separately. If you have questions about that or want to see if your bank is FDIC insured, check online or call 877-275-3342.
The best thing you can do
Protecting your house should be your number-one priority in tough economic times, so take care that you are making responsible moves with your money. Are you borrowing too much? Carrying too much debt? Really take a good, hard look at how you manage your money. How do you spend and save? If a domino collapsed in your world, would you still be able to pay the mortgage or make your car payment? Or are you extended to the max? Are you saving as part of a personal financial plan with goals and objectives (the kids' college education, your retirement, etc.)? If there's anything you should do in the wake of all this—this is it!
If you have money invested
As always—not just when the market is tanking—make sure your portfolio is well diversified. Review your investments on a regular basis, even your 401(k) allocations. And seek professional help. I can't possibly pretend that I know everything there is to know about investing. That's not what I do for a living. So what do I do? I seek out experts who can help me make the best decisions for my family in the long term—not just not gut-reactions. Does it cost a lot of money to seek professional help? No. There are plenty of free financial planning seminars. Ask your local bank or call your local Consumer Credit Counseling Service office and ask.
Have faith
If you're like me, you get overwhelmed and panicked when you feel helpless. You are not helpless. Take control of what you can: your finances. Even if you just take one small step, like paying more than the minimum of your credit card bills, that's something. That's a first step toward being more responsible with your money and your future. Take a deep breath and start. You have more control than you think.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
With gas prices as high as they are, everyone is looking for a way to save at the pump. This week, Tracy Davidson, consumer reporter for WCAU in Philadelphia, explains how using your debit card can actually cost you and what you can do to avoid this added expense.
How Using Your Debit Card Can Cost You at the Pump
by Tracy Davidson
As if paying for gas doesn't hurt enough, if you use your debit card it can hurt even more. That's because of something called a "hold." One of our viewers, "Fred," told me he put 15 dollars of gas into his tank using his debit card. When he looked at his bank account online he was overdrawn because of an unexpected charge of $37.50. For three days that money was not available. "How could this be?" he asked? "And who's got my money?"
"Holds" usually happen when the total amount to be debited is not known at the time the debit card is swiped. When you swipe at the gas station before you pump, they don't know what the final amount will be. (It happens at restaurants too, because you haven't added your tip at the time the card is swiped, so they don't know the total amount.)
So here's what happens at the gas station: The gas station sends through a pre-authorization to your financial institution to make sure the card is valid and that you have enough money in your account to cover the purchase. These days the cost of filling up could be $75 or more because that's how much it might cost to fill a tank. Then the bank decides to hold a certain percentage of that pre-authorization and it also decides for how long to hold it.
How Long Are They Holding Your Money?
Even though Fred ultimately put only $15 of gas into his tank, the bank "held" $37.50 for three days. How do they decide how long to "hold" the money? It makes sense that it should be for as long as it takes the charge to actually clear. But in some cases it's longer and in some cases the bank may keep the hold longer for people who have lower balances, which, of course, sends overdraft and check bouncing charges spiraling.
How to Avoid a Hold
In October 2008, gas retailers will be able to use a RTC or "Real Time Clearing" procedure offered by Visa that is supposed to allow Visa debit card transactions to clear in two hours or less. Until then, here's how to avoid those dreaded "holds":
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
How Using Your Debit Card Can Cost You at the Pump
by Tracy Davidson
As if paying for gas doesn't hurt enough, if you use your debit card it can hurt even more. That's because of something called a "hold." One of our viewers, "Fred," told me he put 15 dollars of gas into his tank using his debit card. When he looked at his bank account online he was overdrawn because of an unexpected charge of $37.50. For three days that money was not available. "How could this be?" he asked? "And who's got my money?"
"Holds" usually happen when the total amount to be debited is not known at the time the debit card is swiped. When you swipe at the gas station before you pump, they don't know what the final amount will be. (It happens at restaurants too, because you haven't added your tip at the time the card is swiped, so they don't know the total amount.)
So here's what happens at the gas station: The gas station sends through a pre-authorization to your financial institution to make sure the card is valid and that you have enough money in your account to cover the purchase. These days the cost of filling up could be $75 or more because that's how much it might cost to fill a tank. Then the bank decides to hold a certain percentage of that pre-authorization and it also decides for how long to hold it.
How Long Are They Holding Your Money?
Even though Fred ultimately put only $15 of gas into his tank, the bank "held" $37.50 for three days. How do they decide how long to "hold" the money? It makes sense that it should be for as long as it takes the charge to actually clear. But in some cases it's longer and in some cases the bank may keep the hold longer for people who have lower balances, which, of course, sends overdraft and check bouncing charges spiraling.
How to Avoid a Hold
In October 2008, gas retailers will be able to use a RTC or "Real Time Clearing" procedure offered by Visa that is supposed to allow Visa debit card transactions to clear in two hours or less. Until then, here's how to avoid those dreaded "holds":
- First, ask your bank what their policy is, so you'll know.
- Use your credit card. Now, some people will say, "That'll cost me more because gas retailers are charging a lower price for cash purchases and a higher price when you use your credit card, and using your debit card is same as cash right?" Wrong. Stations still pay a fee for the transaction, so for them, it's not the same as cash, and most will charge you the "credit card" rate.
- Pay with cash. I know it's hard but it can save you a lot of money.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
We have an exciting new guest blogger joining us on House Calls. Tracy Davidson, consumer reporter for WCAU in Philadelphia, is going to be blogging weekly about your money and smart ways to both save and spend it. If you live in the Philadelphia area you may have seen Tracy on All That & More with Tracy Davidson. This week: Tracy tells you how to find out if your bank accounts are safe.
Are Your Bank Accounts Safe?
by Tracy Davidson
The video of people lined up to get their money out of Indymac made me think of the "run on the bank" in the movie It's a Wonderful Life. Unfortunately it's real life for more and more customers. Estimates are that this "crisis" could take down many more banks. So what should you do? Don't panic! And don't think that stuffing your mattress is the answer!
Is your bank FDIC insured?
First: Make sure your financial institution is FDIC insured. How do you do that? Banks and financial institutions post FDIC signs at their locations. Or you can call 877-275-3342 or check online to see if your bank is FDIC insured.
What exactly does it mean if a bank is FDIC insured? The Federal Deposit Insurance Corporation is an independent agency of the federal government. It was created in 1933 to address the problem of failed banks. The key fact in this history lesson: Since January 1934 no depositor has lost a single cent of insured funds as a result of a bank failure.
How much are you "insured" for? Basically you're insured up to $100,000 per depositor, per insured bank, which includes principal and accrued interest. So ask yourself which types of accounts you have with your bank—checking, savings, trust CDs? You'd be covered for up to $100,000 for all of those accounts, combined. Now, could you be insured for more? Yes, for instance if you have a checking account in your name and another checking or savings account that is in both your and your husband's names. Different ownership categories are separately insured. IRAs are insured separately for up to $250,000, but other investment products like stocks, mutual funds, bonds or annuities are not covered, even if purchased at an insured institution.
Check up on your bank
Still curious about whether your bank will be the next one in the headlines? The FDIC has a list of 90 banks that could be in danger of failing but, unfortunately, that list is not available to the public. You can, however, check Bankrate.com. It has a rating system where you can plug in your bank's name and check out its relative financial strength.
Bottom line: If your bank is insured, you can rest easy. The FDIC guarantee is a direct obligation of the United States Government. So as long as the government is in business, your FDIC-insured money is safe.
Added note: Have your money in a credit union? They are insured by the National Credit Union Administration.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
Are Your Bank Accounts Safe?
by Tracy Davidson
The video of people lined up to get their money out of Indymac made me think of the "run on the bank" in the movie It's a Wonderful Life. Unfortunately it's real life for more and more customers. Estimates are that this "crisis" could take down many more banks. So what should you do? Don't panic! And don't think that stuffing your mattress is the answer!
Is your bank FDIC insured?
First: Make sure your financial institution is FDIC insured. How do you do that? Banks and financial institutions post FDIC signs at their locations. Or you can call 877-275-3342 or check online to see if your bank is FDIC insured.
What exactly does it mean if a bank is FDIC insured? The Federal Deposit Insurance Corporation is an independent agency of the federal government. It was created in 1933 to address the problem of failed banks. The key fact in this history lesson: Since January 1934 no depositor has lost a single cent of insured funds as a result of a bank failure.
How much are you "insured" for? Basically you're insured up to $100,000 per depositor, per insured bank, which includes principal and accrued interest. So ask yourself which types of accounts you have with your bank—checking, savings, trust CDs? You'd be covered for up to $100,000 for all of those accounts, combined. Now, could you be insured for more? Yes, for instance if you have a checking account in your name and another checking or savings account that is in both your and your husband's names. Different ownership categories are separately insured. IRAs are insured separately for up to $250,000, but other investment products like stocks, mutual funds, bonds or annuities are not covered, even if purchased at an insured institution.
Check up on your bank
Still curious about whether your bank will be the next one in the headlines? The FDIC has a list of 90 banks that could be in danger of failing but, unfortunately, that list is not available to the public. You can, however, check Bankrate.com. It has a rating system where you can plug in your bank's name and check out its relative financial strength.
Bottom line: If your bank is insured, you can rest easy. The FDIC guarantee is a direct obligation of the United States Government. So as long as the government is in business, your FDIC-insured money is safe.
Added note: Have your money in a credit union? They are insured by the National Credit Union Administration.
Check out All That & More with Tracy Davidson.
Read more of Tracy's blog posts.
