Queercents

Last week I compared CDs to online savings accounts and pointed out that the interest rates on CDs at brick and mortar banks are about the same as the interest rates for an online savings account. So for the short answer, in terms of interest rates, no they’re not really worth it.

CD’s, by the way, are Certificates of Deposit. Unlike savings accounts, where you can access your money at any point, you can only withdraw from a CD during a certain time period without a penalty. HowStuffWorks has a good rundown of just what a CD is, and if you should consider opening one, saying:

A CD is good idea when:

* You have money you won’t need for a while
* You can get a better interest rate than with other types of savings
* You don’t want the risk of other types of investments

Comparing the rates of online savings accounts, and even online CD’s, to brick-and-mortar bank CDs generally give interest rates within a half a percentage point. (To see if that makes a difference in terms of what you’re depositing, you can use The Simple Dollar’s Guide to Calculating APR and APY ) The question then is does the added interest make up for the inconvenience of a CD? Read the rest of this entry »

At long last, the weekend is here. Time to work on projects, do some cleaning, sleep in, or all of the above.

• Right on the heels of Ellen and Portia’s wedding, Hallmark is now selling gay marriage cards. On a foray into the store, I also noticed that there are congrulatory coming out cards as well. (Read it at The Advoctate)
• I always love little reminders to find happiness in every day. No matter how stressful or lousy your day has been, little tips like those found on Leo’s list go a long way to improving it. (Read it at Zen Habits)
• Here’s a follow up on my recent post about NSF fees. Consumerist has a breakdown on sneaky ways your bank can hit you with overdraft charges. (Read it at Consumerist)
• Summer is my favorite time to pick up a new hobby, and it takes a lot of discipline to not go overboard with getting accessories for that hobby. Sometimes it can be handy (purchasing a set of bike gloves saved my left hand from some really nasty road rash that my elbow wasn’t so lucky on) and sometimes it can be a money pit. JD offers some thoughts on not getting too caught up in spending money on hobbies. (Read it at Get Rich Slowly)
• Despite the notorious difficulties of working on a Beckett play, particularly with the elaborate stage directions, Beckett felt that people were most creative when they worked within a set of constraints. Steve at Brazeen Careerist agrees. What do you think? (Read it at Brazen Careerist)

Queercents flashback: As is often the case, what is needed tends to appear when it is needed most. So of course as I’m clicking through archives, I discovered Paula’s series “Career and Money” while endlessly debating the question of whether or not to apply for graduate school. Paula advice is great, particularly for those worried about impending career choices.

From my post on budgets, you would think the answer is yes, and you’d be right. Partly. I certainly wouldn’t be the first to point out the most attractive feature of online banks: better interest rates. Over the past two years, the main trend I’ve seen is that most online savings accounts have interest rates that for the most part rival CDs.

Two years ago, interest rates for a CD were in the low fives (mine was a special rate of 5.25 APY) and online savings accounts were high fours and low fives as well. Now CDs are in the three percent range and so are online savings accounts. Of course, the question here isn’t between the two types of accounts (CDs or online savings) but is the monetary return in interest from internet banking enough to make it worthwhile?

A friend of mine once joked that you’ve mastered the liberal arts education when you answer questions by responding “Well, it could be this but it could also be that and the only answer is there is no right answer” at which point you throw up your hands in surrender. And I have to say that, as unhelpful as it may be, my answer to the question of internet banking is something along those lines. Yes, your money should be working for you, but there’s also something to be said for the price of piece of mind. Read the rest of this entry »

I will definitely admit to having Olympic fever hardcore. All of my free time has been devoted to watching, and I’ve even tried to arrange my list of things to do so I could multi-task while watching.

• In case you were wondering, here’s a list of all of the out Olympians. (Read it at OutSports)
• Well, Ellen and Portia are just too darn adorable. (Read it at After Ellen)
• Bank failure and hypnotists? Two things I never thought I’d read in the same article. (Read it at Slate)
• Fundamental money skills everyone should know. (Read it at Kiplinger)
• Tyler Durden’s dad in Fight Club said the first thing he should do is graduate college, then a job and then marriage. Now joining Trent of The Simple Dolar is suggesting that college may not be necessary. (Read it at The Simple Dollar)

Queercents flashback: And since right now my one track mind is focused on the Olympics, in case you weren’t paying attention this week, Paula did a really interesting article about the cost of being an Olympian.

NSF fees. Also known as Not Sufficient Funds fees, they’re the fee that the bank takes out of your account when you try and take out more money than you actually have. Overdrafting or overdrawing your account is the technical term for when the withdrawal exceeds the available balance. If that sounds complex, Wikipedia has a breakdown of what that means.

As a bank teller, NSF fees are one of the worst ways I’ve seen money leaving peoples’ accounts. Your money should be working for you, rather than increasing your bank’s profit margins. From service charges, to account maintenance fees, to NSF fees, fees are one of the ways a bank makes money. And NSF fees aren’t small either; they’re approximately 20 to 40 dollars, depending on your bank. They also can add up quickly. Fortunately, there are ways of avoiding them.

The Nitty Gritty Bank Policies Explained
Here’s a checking account primer on check holds, because even if you’re good about balancing your check book, you may not remember to account for the holds. It’s pretty tedious, and even though banks are required to disclose this information, not everyone is aware of it. So here’s the breakdown: Whenever you’re depositing money, the bank can put a hold on your account, depending on what you’re depositing. (Don’t worry though, banks can’t lock up all of your money, no more than deposit amount.) This is to protect the bank in case there’s something wrong with the deposit. Read the rest of this entry »

Recently I talked about how to try and save money while going out, but if hitting up clubs and pubs isn’t your thing, I love picking up new hobbies as a way to keep busy and learn valuable skills. For instance, I’m working on learning to sew so I can customize my apparel and learning to tune bikes. With that in mind, here’s a round up with a hobby inclination.

I discovered this watching a video feed called Crank My Chain! on Miro, a free program that essentially turns your computer into a tv. It uses “upcycling,” to create an awesome looking messenger bag out of those plastic bags that collect everywhere. (Be warned, it takes a while to get the ironing bit down.) (Read it at 5.)

Trent has fifty ways to entertain yourself, with links to a few more. Excercise caution though if trying #2! (Read it at The Simple Dollar)

If you’re just looking to get in shape without spending the money on a gym membership or equipment, Leo has the answer for you. (Read it at Zen Habits)

This survey by Mr. Credit Card is absolutely fascinating, and illuminating for anyone who has a credit card. It even has graphs. (Read it at Ask Mr. Credit Card)

Chris Schonberger and Stuart Schultz over at Brazen Careerist have some good advice if you’re just starting a new job. (Read it at Brazen Careerist)

In the continuing trend of FDIC concerns, fivecentnickel, attempts to answer the question of what happens to your CDs when a bank fails? (Read it at FiveCentNickel)

Other items of note: If you’re in New York City, The Frugal Duchess will be chatting up her new book at a Sip ‘n Save book party at Starbucks on Park Avenue.

Queercents flashback: If you have an old hobby you’re no longer into (in this case, comic book collecting), Dawn has suggestions for making money from it.

Since becoming single again, one of the things I’ve noticed is that most writers posting on about saving money on evening entertainment celebrate staying in. A night at home may be a great way to relax and recharge–I love cooking dinner and watching a movie or reading a book as a way to unwind– but I also love getting out and meeting people. A night at home watching movies or reading books you own (or have borrowed from the library) and eating a home cooked meal is much cheaper than a night on the town, but there’s definitely something to be said for having a great evening socializing.

I love Gretchen Rubin’s blog The Happiness Project, and her commandment to “Spend Out” is both profound and simple. One reading of this commandment is that money spent on social activities is like an investment in your happiness: spending an evening in the presence of people whose company you enjoy is difficult to beat. Done sensibly, in my opinion going out is definitely money well spent, particularly if you’re looking to meet girls (or boys).

Going Out on Less
Even though I love to go out, and think it’s worthwhile, sometimes a night out can feel like you’re hemorrhaging money. I love going out, and I love going out often. But there’s the food, and the drinks, and the gas for the round trip….it all adds up quickly. So then what to do? One quick and easy way to shave money off your nightly bill is to plan to avoid establishments with cover charges, but I also use two other methods to keep my costs down so I can afford to go out more. Read the rest of this entry »

I love, love, love summer. Biking, rock climbing, and frisbee are bike sources of happiness in my life right now, but the best part is definitely the extended hours of daylight. It may be overcast where I live right now, but that doesn’t seem like enough to bring me down off the high that is running around barefoot in the grass.

• With the heat though has come an oppressive humidity. Fortunately, the internet offers up some ways to save the day with recipes for delicious frozen drinks. (Read it at Good Housekeeping via Lifehacker)
• The Olympics are coming up, bringing an out Olympian. (Read it at Edge New York)
• Sort of like the time my friends and I protested Starbucks forcing out a local coffee shop by same-sex couples PDAing in a conservative town, this woman is using an unconventional way to express her dissatisfaction with the local Wal-Mart. She’s got some series ovaries… (Read it at Bike Forums via Consumerist)
• Always good for analyses and graphs, fivecentnickel has offered up some interesting information about the recent raise in minimum wage. (Read it at fivecentnickel)
• For some people, when it comes to picking their bank, the rates are more important than anything. J.D weighs in on the importance of “rate chasing.” (Read it at Get Rich Slowly) Read the rest of this entry »

One of the things my mother always told me about savings is that your money should be working for you. This means that if you have a sizable account balance, it shouldn’t just be sitting in a checking account earning a tenth of a percent interest. Even if you have the FDIC maximum balance, you’re only making around hundred dollars a year, depending on your banks interest rates. Clearly, your money isn’t working for you. With a little time invested in setting up and organizing your accounts though, you can get more return on your money.

Checking:
Even though they don’t have great yields, if they offer any interest at all, checking accounts are something of a necessary evil–especially since I associate them almost exclusively with paying bills. There are some better options though: online checking accounts offer substantially better interest rates, typically around 1-2%. And because online banking is a free service linked to accounts, you can set up online bill pay where checks will be made for you for free (since my bank charges for books of checks, that’s a minimum of twenty dollars saving a year). If you’re not willing to switch to internet banking, it can be worthwhile to ask if there are better interest rates available. If you’re bringing a modest balance and are “new money” (meaning you don’t have any previous accounts at the institution), banks may be willing to get a higher interest rates for you. (Though this is particularly true of CD’s, there may be good rates that aren’t being advertised, and some banks may match competitor’s banks if they want to retain customers.) There are also higher interest rates for maintaining higher balances, if your lifestyle permits you to do that. Read the rest of this entry »

I’m about to head off to Maryland to meet with my Dad and help him move into his new apartment. After being given early retirement from his job, he took a mini retirement and was then able to get a new job working in pollution control. Before I go though, a roundup.

• The other week I was just talking about the benefit of libraries, and it turns out there were a couple of points I missed. (Read it at Consumerist)
• A customer at our bank makes weekly deposits into what he calls “The Slush Fund,” an account he deposits the weeks change and a few bills. After a few years he’s built up a solid emergency fund. Using a similar method, one woman, mentioned in the Boston Globe managed to save thousands of dollars. (Read it at Get Rich Slowly)
• Philip Brewer also has some thoughts to contribute about whether or not you track your expenses. (Read it at WiseBread)
• Buried in the middle of the article are three fantastic tips for leading a more fulfilling life. I’ve been working on them myself, and I have to say that it’s led to the best summer I’ve had. (Read it at The Happiness Project)
• Trying to keep on top of everything you’ll be doing though if you decide to follow those general goals means you’ll be fitting a lot into a day. Fortunately, there are some tips over at Zen Habits that will help you out. (Read it at Zen Habits)

Queercents flashback: Speaking of career changes, careers may not be all they’re cracked up to be.