Got No Dough - Saving Money in Slim Times

As I was checking my bank account online this morning (yahoo, it’s payday!), I glanced down through my account information. It listed the rewards and benefits of our particular account and that’s when I realized what a great decision we made in choosing our bank. Being frugal doesn’t always mean finding ways to save money, it can also deal with ways to make money.

I believe the benefits vary by state, but I would seriously like to recommend Washington Mutual’s Free Checking Account. Some of the key benefits include:

• Free Checks for Life
• Free Wire Transfers
• Free ATMs
• Free Online Banking
• Free Check Safekeeping
• No Monthly Fees
• Free Identity Theft Services
• Free Account Alerts

Here in California (not sure which other states offer this), we also get:

• Free ATM Withdrawals Worldwide
• Free Gold Debit Mastercard with Rewards (I’ll come back to this later)
• One Free Overdraft or Bounced Check Refund Per Year
• Free Outgoing Wire Transfers

At first glance you may not see anything special, but there are three particular things about this account that stick out to me.

1. Free Checks For Life - Unless you can get a promotional offer, checks can be a little pricey. They cost about $20 a box and depending on how many checks you write, it can add up. Hypothetically, let’s say you write about 15 checks a month. At that rate you will use about a box a year. Savings: $20 a year
2. Free Gold Debit Mastercard with Rewards - Every time I use my debit card, I earn .03¢. I LOVE to earn money by doing things that I normally do anyhow. We opened our account in May and so far I have accrued $11.46. The rewards will be deposited on our account anniversary date, so we still have 6 months. Earnings: $23.00 a year
3. One Free Overdraft Charge Refund Per Year - I’ll confess - I don’t make it a habit of bouncing checks, but life happens. I’ve already used my free overdraft this year. Savings: $30.00 a year

If you do wire transfers or use ATMs you can save more money, but these were the three that apply to me most often. Based on that, when May 2008 rolls around, I will have $73 more in my pocket than if I had gone with another bank. Sounds like a pretty smart decision to me.

Typically, when people think of opening a savings account, they think of sitting in a bank waiting for a representative to help them.  Well, welcome to the 21st century!  You can now open a savings account from the comfort of home (and you can wear your PJs if you’d like).

One of the easiest, and most well know online savings banks is ING Direct.  Some of the features/benefits of this account are:

• No minimum balances (I can attest to this.  I have exactly $1.11 in my account)
• No fees or service charges
• Direct deposit is not required
• High interest (4.30%!)
• Automatic savings (It can come straight out of your current bank account)
• Access your account online 24/7
• FDIC insured

To get started, you just have to fill in an application that contains personal information about yourself.  Next you will have to agree to the terms and conditions.    Then you’ll make a transfer from your current bank account to fund the opening balance.  And lastly, you review your information and finalize your account.

It’s super easy!

Make sure to have your checkbook handy during the process (or memorize your routing number).  You’ll need the routing number to make the initial transfer of money.  ING will also make two small deposits in order to verify that the account belongs to you.  Once your initial deposit has been made, it will take a few days to link to your current checking account.  Then, your account will be frozen for 10 days before any withdrawals can be made.

All in all, I think this is a wonderful service and obviously I highly recommend it.