The banking industry has undergone numerous changes over the years making it important for consumers to stay abreast of changes to manage their accounts well.

The consequences of making mistakes while managing your checking account can not only be embarrassing in the case of returned checks but also very costly.

Banks have been criticized for charging excessive penalty fees as well as failing to conspicuously disclose important information for various accounts. Wasting money on fees and penalties is not necessary and can be avoided by practicing the following tips.

• Find the right bank. Not all banks are created equal. Each institution has unique accounts, terms and policies making some better than others. Take the time to compare banks – both local branches and virtual banks which operate online. Understand your own banking needs and spending habits to find a bank and account that is best suited for your personal habits.

• Play by the rules. Before you open an account, carefully read the terms and conditions as well as individual policies to ensure you know how to manage your account. By becoming familiar with these rules you are in a better position to actually manage your account accordingly. Just because the banks don’t always draw attention to their policies, it is your responsibility to seek out this information and follow the rules to avoid mistakes which can lead to fees and loss of money that could be used elsewhere in your budget. Specifically you should understand policies regarding how long your bank will hold deposits, how your bank handles an overdrawn account and what protection is offered in the event of fraudulent use of your account.

• Track all transactions. The key to managing your checking account is simply paying attention and tracking all transactions. This may become increasingly difficult in an era where consumers frequently use debit cards for day-to-day transactions as well as electronic deposits and payments. It is imperative that each and every check, debit card purchase, electronic payment, automatic payment and deposit is logged in your check register.

• Take advantage of online features. Most banks today offer customers the option of managing their account online. This can include online bill pay, transferring money between various accounts or simply logging on to balance your check book. The advantage of routinely checking your account online is the opportunity to spot and in some cases correct errors before they result in an overdrawn account.

• Money management tools. Another benefit offered by technology is the ability to sign up for free money management tools via the Internet. There are dozens of websites that help consumers create a budget, track spending and many even link to your bank account and other accounts to automatically update financial information. This can be very useful for people who juggle several credit card, savings, investment and other accounts by providing a “one stop shop” to manage their accounts.

More consumers are paying attention to their personal finances and the need to carefully manage various accounts to save money. Debt reduction, building savings and establishing long term financial security begins with making the best use of each and every dollar available. Checking accounts are not a new concept however the way in which you manage your checking account has certainly changed from just a few years ago.

Advances in technology not only make it easier to manage your account but also easier for mistakes to be made by both consumers and banking institutions. Avoid paying costly fees and penalties and protect your hard earned cash by implementing these tips to manage your account with ease.

Trisha Wagner is a freelance writer for DepositAccounts.com, where you can compare rates of checking accountsfrom dozens of banks in one place. Trisha writes regularly on the topics of personal finance and savings accounts.

For those of you that are planning a getaway this spring or summer, I am going to talk a little bit about the dos and don’ts of travel to help save ourselves some money and some hassle.

Check All Options

When you do your booking, especially for air tickets, check all the possible ticketing sites and compare the offers that each one has so you can pick the lowest one or the one that suits you best in terms of travel date, time, kind of carrier etc.

A lot of you may be aware that you get better deal on weekdays rather than weekends. Also there is this site which claims to do all the hard work for you by comparing a combined total of 500 travel sites and some 600 airlines to find you the cheapest deals, so you may want to check that one out.

Having said this, don’t ignore the option of visiting a travel agent completely, because the internet may not always be the cheapest place to buy. Sometimes sitting across from someone who will plan out and book your itinerary makes more sense. What travel agents can sometimes do is give you the benefit of bulk booking.

Check Yahoo Message Boards

Message boards are a great place to find out what travel deals people are talking about, what bad experiences they have had so that you know what or where to avoid and you may find some links to pages that you may have been looking for!

Last Minute Deals

Sometimes waiting till the last moment can get you the best possible deal, because hotel rooms can go on ’sale’ too! The only problem with waiting for the last minute deals is that you run the risk of not finding any deals and having to pay a price that might be higher than had you planned ahead.

This approach can work well if you have some flexibility in your schedule.

Flying is Cheaper Than Driving

I love driving, but on a long distance trip flying is usually cheaper and obviously a time saver as well. If you notice, fuel prices these days are just sky-rocketing so filling your tank keeps costing more and more, whereas air ticket prices have not increased that much. And if you are flying, remember a round trip is cheaper than a one-way ticket.

If you are driving and opt for a rental car, remember that most of the time you may not require travel insurance because your current car insurance policy may cover you, just be sure to check with your insurance agent. If not, you can pay by credit card as many cards now offer coverage when renting a car.

Tips Traveling With Kids

Notice how excited a kid is at the thought of taking a trip, but once you are on your way that same cheerful, excited kid becomes whiny, bad tempered and perilously close to a tantrum?

First make sure the child has plenty to keep him or herself occupied. Toys, books, puzzles, some favorite music etc. I found this very useful and comprehensive list, full of suggestions for babies and older kids.

When you sense that your child’s about to lose it, divert him or her. Distract them with a game, engage them in some activity such as looking for something that isn’t really lost, or even read out a favorite story. These are good to keep in mind because a happy child is the difference between a good holiday and awful one!

If you are tallying up your expenses every month, you may be shocked at how much you are spending on groceries.

Obviously, groceries aren’t a luxury you can do without and perhaps that is why so many of us are lenient with our grocery budget.

However, there are many ways to reduce this monthly expense.

Here are 12 simple ways to save money on groceries:

1. Buy a few Sunday papers each week and clip coupons. However, you should only save coupons of items you really enjoy. Never buy something solely because it is on sale.
2. Before you go to the store, carefully plan a sensible list. Do not stray from the list once you are in the store, no matter what is dangled in front of you in the checkout line.
3. Always buy at least a week’s worth of groceries. The more trips you take to the store, the more you risk “impulse buying.”
4. Always shop on a full stomach. You will likely buy more food when you are hungry.
5. Where applicable, you should opt for poultry instead of the much pricier red meat.
6. If possible, go to the store without your children. They have a tendency to help you fill the shopping cart.
7. Don’t be a name brand snob. Generic store brands are often just as good and will save you a lot of money in the long run.
8. Foods like pasta, rice and beans are filling and inexpensive. They make good staples in a frugal diet.
9. Items with the highest markup are often placed at chest and eye level. Don’t forget to check out foods that are stored lower on the shelves, as they may offer the best deals.
10. Shop early in the morning or late at night to avoid crowds. The faster you zip through the store, the less likely you are to stray from your list.
11. Watch your cashier ring up your items and then carefully review your receipt. Mistakes are more common than you realize and they will cost you unnecessary expenses.
12. Two words: ramen noodles.

One of the least flexible expenses in your household budget is the grocery bill. However, the tips above should help you be a little more diligent and creative when trying to reduce the cost.

By-line:
Heather Johnson is a freelance writer as well as a feature article contributor for Reward Programs, a site which helps consumers pick the best rewards program to best meet their needs. Heather welcomes your comments and emails related to job inquiries at her email, heatherjohnson2323@gmail.com.

Shopping online presents a great opportunity for good deals and comparison shopping, but it can often be time consuming and confusing.

Fortunately, there are simple Firefox add-ons that can make your online shopping experience a little easier.

Whether you want to know where to get the best deals on electronics, compare prices, or limit the amount of time you’re allowed to spend shopping, there’s an add-on out there for you.

Check out these five extensions that were designed for frugal online shoppers like you.

1. Pronto Shopping Messenger – This add-on is a great way to effortlessly comparison shop online. Pronto draws from over 60,000 merchants to look for the best price on millions of items sold online. Moreover, downloading the add-on can also provide you with exclusive coupons.

2. Biet-O-Zilla – Biet-O-Zilla is a must for every eBay addict. It links to your eBay account to let you make last minute bids even if you’re not on the eBay site. You’ll also be able to easily track your watched items.

3. Buy It Online – Buy It Online uses Google Product Search to help you find the best bargains on the web. If you see something you’d like on a website, but aren’t sure where you can pick it up online, simply highlight the product name, and the add-on will generate a list of sites that offer the product.

4. Ultimate Pricechecker – Ultimate Pricechecker is a utility that goes through the namesake website to find the best prices on any item you’re interested in, drawing results from eBay, Amazon, Shopping.com, and Shopzilla.com. The utility will open a new tab for each site, giving you the price of what you’d like to purchase at hundreds of stores so you know you are getting the best deal out there.

5. FareFirst – FareFirst is an important tool for getting the cheapest rates for online travel. You simply select the type of flight you’re interested in, and FareFirst can help you monitor the prices for these flights. Fares are updated regularly and are subject to a rating system. The more stars a flight has, the better the deal you’re getting.

About the Guest Blogger:

Heather Johnson is a freelance business, finance and credit writer, as well as a regular contributor for BusinessCreditCards.com a site for comparing business credit card offers. She welcomes questions, comments, and freelancing job inquiries at her email address heatherjohnson2323@gmail.com

While this should not come as any surprise due to the recent rate decrease by the Federal Reserve, HSBC Direct has officially adjusted their Online Savings Account interest rate to 3.80% APY.

This is a far cry from the 6.00% APY that was being offered last year at this time on all new deposits but is understandable given the current conditions.

Even with this decrease, HSBC Direct is still offering a more competitive rate than ING Direct – who decreased their rate to 3.65% APY just last week.

However, be wary of transferring all of your funds over to a new bank that may still have a slightly higher interest rate.

As you can see with the timing between the rate adjustment from ING Direct and HSBC Direct, some banks will delay their adjustment in order to encourage new deposits. Just remember that the rates on online savings accounts are variable and subject to change at any time.

If you’re looking for something with slightly more stability in terms of the interest rate, you might want to consider setting up laddered certificates.

After the Federal Reserve cut short-term rates by 0.75 points on Tuesday, ING DIRECT wasted little time in adjusting their rates to reflect the recent rate cut.

The interest rate on the ING DIRECT Orange Savings Account has been changed to 3.65% APY.

In addition to the changes on the savings account, ING DIRECT has announced that the rates on the Electric Orange Checking Account have changed as well. Here are the updated rate tiers:

* $0-49,999.99 earns a 2.50% APY
* $50,000.00-$99,999.99 earns a 4.00% APY
* $100,000.00 or more earns a 4.25% APY

There is no doubt that ING DIRECT will not be the last of the banks to be dropping their rates due to the short-term rate cut by the Federal Reserve.

This decrease in rates is certainly cause to take a step back and evaluate all of your options regarding your savings. It is important to ensure that you are maximizing your dollar and that your savings are earning you more than you are paying in interest on any debt.

How will this impact your savings strategy?

If you always stick to your budget and save a few dollars a day, then you are on your way to a debt free life.

Keeping a budget log where you jot down your expenses would help you in saving more money.

Take a look at your monthly expenses. Mark the things that you spend less money on and find a way to cut down on them even more. After doing so, make your way up the list and do the same thing.

A few dollar savings can effectively help you save big in the long run. For instance, if you normally buy a large coffee switch to a small coffee and you will be surprised on how much you can save over time. Just imagine how much you can save if you cut down on the more expensive things that you usually purchase. If you want to add more funds to your savings account, try these tips today:

• Always categorize your purchase. Does it fall under wants or needs? Prioritize buying what you need more than what you want. Needs are necessities like food, clothing and household stuff, among others. Wants are the things that you enjoy and enhance your being.

• Do not be an impulsive buyer. Before doing the groceries, list the things that you need to buy and stick to the list as much as you can. When shopping, try clothes or shoes on before you buy it. Make sure that you spend money on the things that you would use for a number of times. Be a budget shopper. Go for discounts and sales. If you are meaning to buy something expensive, give yourself the entire day to think about it.

• Avoid late fees as much as you can. You can save big if you can avoid late fees and penalties on your credit cards, loans, mortgages and other monthly bills. You can always change the due date of your credit card bills so you can pay them at the same time you pay your monthly bills.

• If you have some loose change in your pocket, save it! It will pile up and before you know it, you already have created funds for emergency use.

• If you are taking prescription medicine, ask your doctor if he can prescribe to you generic drugs. Buying generic drugs can help you save hundreds of dollars every month. You can buy store brands over commercially advertised brands that can cost you so much more.

• Avoid bounced checks and save about $30 a month. Use a debit card instead of credit cards if you do not have enough cash with you. Avoid using your ATM from other banks that would charge you a certain amount for withdrawal.

• Shop for the cheapest gas around your area. Make sure that you maintain a good engine so that you do not spend more on gas. If you have to commute, try using public transportation instead of taking a cab. If you have to fly out of town or outside the country, book in advance so you can get the cheapest rate.

With these tips above, you are sure to add more dollars to your piggy bank!

The Illinois 529 College Savings Program, named Bright Start, is currently in the process of transitioning to a new program administrator.

For plan participants, this looks to be a very positive change and should provide a few new attractive options for your investments including the introduction of index fund options from Vanguard.

The new administrator will be OFI Private Investments Inc., a subsidiary of OppenheimerFunds, Inc. and there will be lower annual fees, enhanced online account management and a wider selection of investment options. The transition will not require any action on the part of participants and account balances will be moved to similar investments in the new plan.

Beginning July 23rd, Bright Start investors will be able to choose between an actively managed strategy or an index strategy. The active investments will be managed by OppenheimerFunds while the index investments will be managed by Vanguard. Further, there will be a choice between an age-based portfolio or a static portfolio.

The static portfolios will include an equity portfolio, balanced portfolio, fixed income portfolio, and principal protection income portfolio. There will be 6 different age-based portfolios with the asset allocation becoming more conservative as the child gets older.

One of the most attractive changes will be the lower account fees. The previous plan administrators had fees that were on the high side so this will be a welcome change. For investors that select the index strategies, they will have plan fees that range from 0.20% to 0.23% although there will be an annual account fee of $10 per index portfolio. The active strategies come with plan fees between 0.38% and 0.63% which is still a nice improvement.

If you’re currently enrolled in the Illinois Bright Start College Savings Plan, you should be seeing these changes in the next week and it appears that the plan will be much more competitive with other state plans. Please stop by and share your thoughts regarding the new plan and investment options.

Earlier in the year, I finally took the plunge and moved my emergency fund from ING over to a new account at HSBCdirect. The motivating factor for that switch was the 6.00% APY promotion that HSBC is running until the end of April.

As the end of April is quickly approaching, I’ve been kicking around ideas for my emergency savings. Traditionally, I have simply left my entire eFund in an online savings account. Until a few months ago that had been ING even though their rates had been lagging those of HSBCdirect and EmigrantDirect.

One alternative that I have read about a few times is to stash a portion of your emergency savings in T-Bills. It is possible to invest in T-Bills directly from the Treasury Direct website, which makes it very easy to automate the process.

As I am thinking about this idea, I came across a post at The Sun’s Financial Diary on How to Invest in 4-Week T-Bills that walks through the entire process from account creation to setting up a T-Bill ladder. While there are some potential drawbacks, I like the idea of maximizing the earning potential of my emergency savings.

However, I tend to be a creature of habit and it took me quite some time to finally make the change away from my ING account so I am not sure how quickly I will act on this idea for an alternative destination for my eFund.

Have you investigated the use of T-Bills for a portion of your emergency savings? Or have you come up with any other alternatives to the standard online savings account? I’d be very interested in hearing your experiences and any problems that you may have encountered along the way, as well as the joy you’ve had in earning more on your savings.

In the discussion on my post about the PayPal money market fund, Pakdamek posted a question about short-term CD options and asked for assistance.

My recommendation was to review the current high yield rates for 6-month CDs at Bank Rate, but that Pakdamek might also want to consider an online savings account.

6-Month CD
Looking at the current rates across the country, you will see that the high end for the 6-month CD is right around 5.40-5.45% APY which is higher than many of the standard rates with the online savings accounts. However, the current national average for a 6-month CD is lower, around 4.60% APY.

Looking a little further, many of the CDs offering the higher rates have a higher minimum deposit, often in the range of $1000-$10,000. Depending on your scenario, this may be in the ballpark for you but you might have a smaller amount that you are looking to set aside. If you don’t meet the minimum deposit, you will not be eligible for the high yield CD at many of these institutions.

If you do meet the minimums and find a competitive rate, one of the potential rewards with a short-term CD is that it locks in your interest rate for the defined period of time. Obviously if the rates decrease during that time, this will work to your advantage but it can work against you just as easy if the rates actually increase.

Online Savings Accounts
The key players in the online savings accounts (INGDirect, HSBCdirect, EmigrantDirect) all offer accounts that are quite competitive with the 6-month CD. In some cases, the rates with the online savings account beat those of the short-term CD. For instance, HSBCdirect has been running a promotion that all new deposits earn 6.00% APY until April 30th.

One of the key advantages to an online savings account is the lack of a minimum deposit. This opens the door to virtually everyone as you do not need $10,000 or more to take advantage of the high rates. In addition, you have the flexibility to add or remove funds over time as your needs change. With the short-term CD, you are locked in with that CD until maturation and you will face penalties if you need to cash out the CD before the expiration.

Contrary to the CD, an online savings account is open to rate fluctuations based on the current market conditions. If this is a concern to you then you might be more comfortable with the short-term CD. However, rates have been fairly consistent for some time now and this has been a benefit to the online savings accounts.

Other Options
Other options for short-term savings would include vehicles such as a money market account or t-bills, which can be purchased directly at TreasuryDirect.gov without much hassle. The rates here are quite similar to the online savings accounts and offer similar advantages versus the short-term CD.

The Winner Is…
For my money, the winner is the online savings accounts. As I mentioned, I’ve been taking advantage of the 6.00% APY promotion being run by HSBCdirect and also maintain an account with INGDirect. Once the promotional period at HSBCdirect expires, my account will revert back to the standard 5.05% APY and that is still better than many short-term CDs.

In my opinion, the short-term CDs just do not have enough advantage in the current market to warrant using them over these other options. With the CD, you lose the liquidity of your money and the spread in interest rate (if one even exists) is not great enough to justify the potential drawbacks to a CD.

If you haven’t done so already, I highly recommend that you take a few minutes to explore an online savings account today. You can open an account with a $1 deposit and then experiment with the site to determine if it will work for you. For the best rates, I would recommend either HSBCdirect or EmigrantDirect. For the best user experience, I would recommend INGDirect.

As a note, you can receive a $25 account bonus with an initial deposit of $250 at INGDirect if you are referred by an existing account holder. If you’re interested, please leave a comment on this thread or contact me to ask for a referral (disclosure: I will receive $10 for each referral).