Here are five reasons you should be paying more attention to your receipts:

Overpayment

To be a savvy consumer you need to ensure you are never overcharged for anything. You should check through your receipt before leaving the store so you can head back to customer service and report the errors to get a refund. Some stores promote other perks like double refunds if pricing is wrong.

Expense Tracking

You may think you can estimate how much you spend in different financial categories but you should utilize receipts to confirm exactly what you spend from month to month for budgeting purposes.

Deductible Proof

In addition to expense tracking, you will also need to hang on to those receipts for income tax time as proof of your spending. This is also true for independent business owners.

Spending Habits

By using your receipts to track expenses, you can use more accurate data to figure out your spending habits. Until you face the reality of how much you spend and how you spend it. This is the only way you will be able to establish an accurate budget and plan for savings to stabilize your financial future.

Receipt Cautions

Saving receipts for your financial planning is important but disposing of those receipts is also something you need to consider. Receipts often give away too much vital information that can compromise your personal and financial information. While many receipts are somewhat discreet, anyone picking up one of your tossed receipts may be able to use the information to rip you off.

Any receipts you are not saving for expense tracking or bank/credit card reconciliations should be properly destroyed using a document shredder. It can be easy to toss the paper into the nearest trash can wherever you are but that will give the public access to your information.

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More banks have imposed new fees or increased existing fees that customers happily pay because they just don’t realize what has happened. Federal regulations on banks have caused the institutions to lose a tremendous amount of profits and as a result, higher costs have been passed on to customers. Banks are hoping to recoup their major loss in profits but are offering little in the way of incentives to the customer.

Here are some tips for reconsidering your business of banking that you can use to evaluate and make the necessary transitions:

Read Disclosures

Banks that make changes to customer accounts must give written notice of their intent. Unfortunately, many consumers fail to properly review or even read any correspondence from their bank, including their regular monthly statements. Disclosures contain a lot of fine print but it does provide an updated and accurate look at how your bank account is changing.

Review Your Statements

Luckily most banks now give customers online access to previous monthly statements. Take the time to log in and review these statements. You may be surprised at the new or increased fees you have been paying for services you often use. These increased fees many include ATM usage, checking account fees, and higher overdraft charges. Keep track of these new fees and add them up over a year’s time. You may find you can not afford to bank with your present institution.

Check Your Reliance

You may be surprise at how many times during the month you utilized bank services that cost you money. You may also find that you do not rely on your bank in a way that justifies the higher cost. Check how much you are paying and decide if it’s really worth it to stay where you are.

Speak with the Branch Manager

Brick and mortar banks have a manager on duty to help you clarify the changes taking place at your bank. If you are not aware of how recent federal regulations have affected your account, seek out the manager and discuss the issues you have or the questions you want to ask. Another recent to speak to a manager is to air out your complaints about recent changes to your account. Some banks may be willing to hang on to loyal customers are will offer a better deal or waive costs in order to keep you happy.

Go Elsewhere

If you have reviewed your banking services and decide that another bank may be in order, it is wise to research all of your options. Outside of the other large banks, consumers may receive better, more cost-efficient service from a local community bank or a credit union. Do your homework to find a better facility to handle your money. If your present bank is not willing to compromise, don’t hesitate to transfer your finds elsewhere.

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The move will take checks out of the equation and replace the archaic system with direct deposit. Currently 85% of beneficiaries get Social Security monies through bank direct deposits. The measure was introduced to prevent check fraud as a consequence of stolen checks. It will also help the government reduce the cost associated with issuing replacement checks.

It is estimated that the Treasury department will save over $1 billion within a ten year time frame by eliminating the paper check system. Additionally benefit recipients will receive their monthly payments in a safer, more efficient manner. It is also estimated that 12 million pounds of paper will be saved in the first five years which is good news for the environment as a whole.

For those still eligible to receive checks (about 10 million), they will have a two year window to make the change from paper checks to electronic deposits and all accounts will receive direct deposits effective March 1, 2013. The monies being deposited will be accessible on the payment date of each month with no wait for the US postal service to deliver their checks.

In light of the various identification scams and check cashing frauds, the direct deposit method may be the ideal tactic to keep benefit recipients safe from identity theft and other fraudulent hassles.

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In the emails from Balboa, the Anonymous poster claimed over Twitter that fraud is alleged due to the bank hiding foreclosure information from federal auditors. There were also other allegations of wrongdoing by the bank made but no specifics were provided.

A former Balboa employee has stated that certain documents were approved to be removed from the internal system because of errors pertaining to flood insurance. The employee stated the bank had approved the file removal so that the mistakes would not be detected by federal auditors. In the emails, employees were apparently discussing the reasoning behind the documentation deletion.

Bank of America did not deny the emails existed but they did take issue with wrongdoing implications. They claim the former employee of Balboa stole the documents and was essentially trying to get press over allegations that were not true. The employee contests he did not steal the documents.

The bank also said they did not send out the letters with the errors. However, another employee of Balboa insists they were sent out with the erroneous information and a subsequent letter was sent to clear up the mistakes.

Bank of America is still waiting for the damaging documents said to be coming from WikiLeaks. Founder Julian Assange has promised these would be available early in the year and would cause much damage to the bank.

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Beginning later in 2011, the checking account fees on customer accounts will be introduced in Massachusetts, Georgia, and Arizona. The checking fees will progressively be activated nationwide at a later date but the initial states are a pilot program for the bank as it tries to maneuver the implementation of various fees.

Bank of America is just one of the banks in the US trying to make up for lost profits thanks to the new legislation that limited how and how much banks could charge customers for a variety of transactions. One of the main focuses banks had was to reintroduce fees for basic accounts which in the past had been free for customers as an incentive for banking with a specific institution.

It is getting increasingly difficult for consumers to access free bank accounts in any capacity as much revenue was lost with the changes in the banking industry in the last year. Banks are finding more creative ways to assess charges and fees on customer accounts and have been changing up the rules. They are focusing on benefitting from their existing customers to bring up their revenue totals. Because of the many changes occurring, it is important for consumers to stay up to date with account changes or risk losing money from unnecessary fees.

Bank of America has been working on various plans that essentially require customers to use more of the banks products and services as a way of avoiding fees. For instance, customers that opt to receive e-statements and do much of their banking online will have to pay less monthly fees.

There will now be four different types of checking accounts for Bank of America customers. The basic checking account known as Essentials will include a debit card and require a monthly fee. eBanking accounts will not require a fee if customers choose to receive statements online as well as perform transactions either through an ATM or the Internet. Enhanced checking accounts will require a fee be paid if a minimum balance of $2,000 is not met. For the Premium account, there will be a required minimum balance of $20,000 and incentives for customers include free check printing and free money orders.

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The bonus for Moynihan was give as restricted stock from the North Carolina-based bank. His salary of $950,000 stayed the same. Thomas K. Montag received $14.3 million in restricted stock and cash awards of $900,000 for his job as leader of the global banking and markets. His salary also increased from $800,000 to $850,000. Montag’s division earned the bank $6.3 billion in 2010 while Moynihan carried $12.4 billion in impairments which were purchased by his predecessor. Bank of America’s shares were reported to underperform during 2010 after dropping 11% after losses were tallied from faulty mortgages from investors which included Freddie Mac and Fannie Mae.

Rival banks have been known to increase base salaries for executives due to the regulations on company bonuses. Bank of America set approximately 10% less on the side for compensation funds for the end of the year due to the decrease in revenue.  Regulators are working on a draft of rules that will help to limit what is considered risky practices by banking institutions.

There were concerns expressed about the awarding of the big bonuses despite such a poor year. Some felt the top execs should not be rewarded for the events of 2010. However, the board of directors for Bank of America reported in their filing that the increase in salaries and the cash bonuses were awarded based on stock price and future performance. End of the year compensation was deferred and tied to the measure of stockholder value.

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Now the bank will impose stipulations on basic checking accounts including minimum balance requirements and out-of-branch-only banking. The move by Bank of America may be a sign of things to come across the board at other banks. Free accounts may soon become a thing of the past. Wells Fargo was the first bank to stop free checking.

Bank of America launched the eBanking account service in August. This service allowed customers who banked solely online to have a free checking account. The stipulations with this banking program is the free account would require a $8.95 if they needed to access assistance from a branch teller or wanted to obtain paper statements.

Other changes have been instituted by Bank of America. An Emergency Cash option was made available to customers who wanted to make ATM withdrawals which exceed their current account balance. The charge for the service is $35 and the customer must directly except the charge before accessing the cash, unlike with a overdraft fee.

Not all banks have ceased their free checking options as of now. There are still banking institutions trying to keep up with free checking account offers including but with the need to make up profits since the recent changes made in the banking industry, it is likely consumers will have a harder time finding a new checking account provider totally free of charges.

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The Home Affordable Modification program fell short of its initial expectation. The program was created to help three million homeowners who could no longer afford mortgage payments. However, more than half of the 1.3 million applicants of the Home Affordable Program were dropped from the program because they were not eligible for the assistance. In order to qualify for a permanent modification on a mortgage loan, a borrower must participate in a trial modification which requires three consecutive mortgage payments and the completion of the necessary documents.

Rebecca Mairone, default servicing executive at Bank of America Home Loans stated “Our HAMP results in recent months show a reduced number of customers starting new trial modifications, due mainly to the implementation of a full-documentation requirement. As a result, we are seeing a smaller increase in completed HAMP modifications month-over-month at this time.”

When a homeowner is not eligible for the government’s help, the bank looks for alternative foreclosure prevention initiatives. Bank of America offers homeowners second-look modifications for those who do not qualify for HAMP but who are still able to prove their ability and intent to make mortgage payments if they were more affordable.

Bank of America has also developed a streamlined cooperative short sale options who do not qualify for any home mortgage modification plan. In some circumstances, Bank of America may provide a cash allowance to assist a homeowner with transitional expenses, including the costs of moving and rental deposits in exchange for the deed to the property

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Citigroup froze Mayo out in late Auguest after he essentially pointed the finger at the bank for using deferred tax assets against the rules of accounting. Mayo’s complaint contends that Citigroup is using the tax assets to boost the bank’s net income, making it seem more profitable than it may actually be.

While the bank has undergone worst scandals, this one suggests a larger problem within the bank. Banking executives are aware of what is happening but it is likely the problem is an impossible one to resolve because of its status after its recent financial crisis.

Citigroup find it’s difficult to define its identity because it is now a mix of executives and other businesses acquired under Sanford Weill. The mix includes the bank, Citibank. There is also the brokerage firm, Smith Barney and the investment bank, Salomon Brothers. There are also lesser names included in the mix such as Golden State Bancorp, Associates First Capital, and Banamex.

Citigroup has worked to streamline business and has cut nonessential divisions and assets but the turnover and controversy among the executive branch has been disastrous. As the Wall Street Journal reports ‘It’s a melting pot that never melted’.

The bank has stated that the turnover at the senior management has been stabilized and 23 of the 25 managers from 2009 are still in their same positions, adding stability within Citigroup. The company is working towards reestablishing its corporate culture which it has long been absent.

Chief executive of Citigroup, Vikram Pandit, is suspected to be the force behind Mayo’s ban though the bank denies the insinuation. Pandit is not exactly comfortable in the role as a leader of one of the country’s largest banks. Rarely does he do interviews and has a propensity for overreacting to criticism from any source.

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Lending is still slow for banks in the US. Banks are trying to ease up on their standards for lending for select loans but banks note that lending will not begin to increase until consumers and businesses regain confidence. Companies need to hire and consumers need to spend. There are some good signs that efforts by the federal government to stabilize bank lending is working. For the first time since 2006, there has been a decline in the number of loans that have gone three months or more passed due. Additionally, the amount of loans being charged off by banking institutions has been on the decline for most of the major loan types.

Banking profits totaled $21.6 billion in the second quarter, which hare the highest quarterly earnings since the crisis in the industry began. The FDIC is reporting that two-thirds of the banks in the US are reporting improvement each quarter.

Right now the list of troubled banks stands at 829 which is the highest since 1993.  Previously only 53 banks were at risk of failure during the previous quarter. One year ago, the FDIC’s list included 416 banks on the watch list. Banks on the list are considered to be at risk of failure but most of the lenders have actually hit a point of failure.

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Bank of America, based in Charlotte, NC, did not give specifics about the problem, only citing a ‘temporary system’ error. The glitch only affected the consumer online banking services and not the bank’s ATM or branch services. The company said online users may still have trouble logging in as of today. Service did come back for customers about 5:15pm EST on Friday.

As the company is working to get more customers signed up for online account management, a web glitch like Friday’s could be bad news for both the bank and its customers. Customers get used to the convenience of access to banking services at home but when problems arise, doubts increase as well. Many consumers still shy away from high-tech banking and prefer the brick and mortar banking experience. However, in an effort to keep up with the competition, more banks are offering online incentives to entice customers to make the switch.

Bank of America, no stranger to customer service problems in the past, have many customers already disgruntled with the bank over the last few years. But while complaints are on the rise, it seems the company’s stock is staying steady. Bank of America is still pegged as one of the country’s top banking institutions.

It is not immediately known what the four hour glitch on the website will bring but doubts will likely remain about the reliability of Bank of America’s online banking services. Customers who have grown tired of the lack of service satisfaction may consider moving on to other financial institutions with stable online services and less fees for banking.

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Having account numbers, bill payment methods and security access PINs and codes available on the app is making banking easier for most consumers. The problem arises when a hacker can easily access this information. Any hacker who can gain access to the phone could ultimately gain access to the information. The way the app has been coded has made its use easy for consumers but the ease of use will also make it a walk in the park for any savvy hacker.

According to the Wall Street Journal,  the Citi iPhone app saves information such as account numbers, bills and access codes, in a hidden file in the iPhone. If someone gains access to the iPhone they would have access to the hidden file and all the sensitive banking information that it holds.

The problem was discovered in a routine security sweep conducted by Citi staff. Citi immediately identified the flaw to its users and acknowledged that other mobile apps such as the credit card app are unaffected. To stem the outrage, Citi advises its approximately 117,600 iPhone app users to upgrade with a newer version that has corrected the problem. The bank maintains that no personal data has been compromised as a result of the flaw.

The mobile app phenomenon is booming and some experts are concerned that security measures are not keeping pace with their development. Whenever there is a positive feature someone will find a way to develop a malicious way in which to use it. When supplying personal information ensure that it is in a secure fashion to prevent the sensitive information from getting into the wrong hands.

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Wells Fargo (NYSE: WFC) took over Wachovia Bank in December 2008 and the move to phase out the name is going forward. Evidence is cropping up around the country where Wachovia signs on buildings are being replaced by Wells Fargo signs. This is one of the more obvious moves the bank has made since the take over.

Most banks still possess Wachovia signs except for locations in Colorado, Arizona, Illinois, and Nevada. California is set to change by April 24 with Kansas and Texas to follow in July. Brokerage and advisory offices are looking to replace the name within the year. The Wachovia brokerage headquarters was moved from Richmond, Virginia to St. Louis back in 2008 and the name was changed last ear. Most international locations are reported to have changed to Wells Fargo as of March 20.

In other areas of the company including banking services, the company continues to use the Wachovia name but also adds in bright red letters ‘A Wells Fargo Company’. Phone messages announce both the Wells Fargo and Wachovia monikers.

“Since announcing the Wachovia and Wells Fargo merger, we’ve been building on each other’s strengths and expanding our capabilities to better help our customers,” said Dave Zuercher, executive vice president and group head of Wells Fargo’s International Group. “We’re proud to serve our global customers as one team. Providing our customers with the same high level of service and helping them succeed financially remains our number one priority.”

Wells Fargo’s International Group serves individuals, businesses, corporations, financial institutions, and multilateral and international agencies. Wells Fargo is currently ranked number No. 1 in overall institutional customer satisfaction and No. 2 in the world in worldwide market share for primary global correspondent banking relationships by FImetrix. The company boasts 27 overseas representative offices and branches in Hong Kong, London, Seoul, Shanghai, Singapore, Taipei, Tokyo and the Cayman Islands.

The company is reported as having $1.2 trillion in assets and provide customers with banking, investments, mortgage, insurance, and consumer finances services in more that 10,000 stores and over 12,000 ATM in North America and Internationally.

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Experts feel that while Bank of American is making the effort, they are indeed behind in priorities overseas as many of the major competition have long been established in China or are on the cusp of doing so.  Chinese regulators must approve foreign banks before they can set up a major retail banking presence in the country. Citigroup (NYSE: C) has gone through the approval process some time ago, as have Goldman Sachs (NYSE: GS). Currently, JPMorgan Chase (NYSE: JPM) is working on forming a joint venture to expand its investment banking operations in China.

Bank of America did not choose to take the same route before the financial crisis they underwent. Instead, Bank of America acquired a minority stake and a seat on the board at China Construction Bank. They also opened a Shanghai banking branch but did little else to take advantage of opportunities in China, the fastest growing global market. Bank of America targeted America and expanded its franchise for the East Coast to the West, becoming number one in almost every category of retail banking. They led in mortgages, deposits, and credit cards. This achievement was of little merit during a time of economic suffering and consumer credit defaults.

Moynihan stated ‘”In the past our consumer strategy was to be a sales machine and to measure success mainly on a number of products sold. This served us well. But as our market share rose and the economy fell, the strategies resulted in … too many products sold to customers which weren’t working for them.”

Bank of America has benefited from the government-incentivized refinancing options and its shares have increased tremendously from where they were just over a year ago. Its shares have traded up 12% from the beginning of 2010. The company realizes the need for a real strategy that will help build relationships with wealthy Americans and new partnerships overseas. Time will be needed to build these relationships as well as proof of performance.

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In the past, consumers who used debit cards to make a purchase but didn’t have enough funds to cover the total amount were still approved for the charge at the time of purchase. However, after the purchase, an overdraft fee would be charged to the account. If more than one purchase was made on a given day, each subsequent purchase would result in an additional overdraft fee. About 60% of the bank’s overdraft fees were collected from debit card transactions. Bank of America is the nation’s largest debit card issuer.

Bank of America now states that effective in the summer of 2010, customers who do not have sufficient funds in their accounts for a purchase will have their card declined at the time of the sale. This decision comes to light as banks await the new federal ruling that will require them to get permission from accountholders before providing overdraft protection services on ATM withdrawals and debit card purchases. Bank of America customers who try to withdraw cash from an ATM without the appropriate funds are already being warned they may proceed with the transaction but will face a $35 overdraft fee for doing so.

The bank will continue to provide overdraft services for checking accounts and automated payments for a fee but made the decision based on the need for trust. Since the disruption in the banking industry has caused many consumers to distrust financial institutions, Bank of America hopes to win back trust from old and new customers. Executives of the company say a common theme heard from customers is they want the bank to let them know when they don’t have the money to spend.

Many consumers found themselves falling into deep debt after they racked up hundreds or thousands of dollars in overdraft fees making small, everyday purchases like a cup of coffee. The Federal Reserve finally stepped in and starting in July 2010, will require that all banks get account owners consent for overdraft fees before they can be charged. Most banks automatically enroll customers in the overdraft programs without approval so customers are not expecting the fees.

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Experts now are saying that while it is true there has been trouble in the banking industry, consumers typically have not much to worry about. They say the banks on the troubled list were small and only held about 3% of the total banking assets. It is also notable that the trouble list held by the FDIC has been longer in the past than in recent times. For instance, 1987 saw more than 2,000 financial institutions having problems and the current list should not be of great concern. Of the 8,000 insured banks in the nation, more than 95% of them are doing well and meeting regulatory standards. In 2010, 20 banks have failed and the FDIC does predict more will fail throughout the rest of the year.

While the list has been established for sometime, history shows that the majority do not fail. However, as the economy recovers in general, it may take the banking industry longer to deal with problems. Banks that deal with commercial real estate may be more susceptible to problems because of the state of the housing market.

If you are worried your bank may be having problems, you should be aware of the facts surrounding what constitutes a safe bank. One thing is to ensure the exact amount of money you have in the bank as the FDIC only insures deposits up to $250,000 per depositor. At the end of 2013, that insurance figure is expected to come down to $100,000. Consumers should also steer clear of banks that work largely in commercial real estate and development loans for the time being.

On the whole, consumers can do research online about the safety of banking institutions rather easily and can also review the annual statements of your bank. On the off chance your bank does fail, customers will still be able to access their cash and no one needs to go in panic mode.

If you are not happy with your current bank due to rising costs and fees, it may be the time to shop for something new. Like many financial obligations, consumers tend to get stuck in a rut and forget that there may be better deals out there if only they step outside and explore what’s new. If you have had the same account for a long time, you may be missing an opportunity to save more and get more by not shopping around at what other banks have to offer.

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Credit cards have traditionally offered rewards programs as an incentive for users. Those programs have been on the decline for the last several years. It should be no surprise that debit cards offering similar rewards programs have increased significantly in the last year. Banks are hoping to attract new business because they need the revenue. Recent regulations will change the way banks due business. Since they are no longer able to collect excessive fees for things like overdrafts, banks need a way to make up for these changes. Banks also have the added benefit based on how the debit card works. The cards are linked directly to a checking account so the bank has a good chance of successful cross-promotion of other goods including savings accounts and loans.

Generating revenue from the debit card incentive programs isn’t easy and it doesn’t come cheap. Most banks shell out up to $25 for reward program members each year when you factor in the costs of technology, advertising, and the cash rewards or other items of redemption. Similar credit card rewards programs cost more – on average $30 per member each year. But banks know they have to maintain consumer interest for the programs to work. Otherwise they risk having consumers go back to the traditional credit card. Debit cards reward programs are also a bit more limited than their credit card counterparts because it can be difficult to develop an intriguing rewards program based solely on the use of checking account funds.

What To Expect Now?
Most debit card rewards involved earning points for each dollar or two dollars spent. Now many banks are upping the ante and creating more credit card-like incentives for an annual fee. Enrolled members can potentially earn 3-4 points for each dollar spent. Points are redeemable for cash and other reward items depending on the bank. Consumers who use debit cards very frequently may be able to recoup the membership fee as well as earn additional incentives throughout the year. Many banks are allowing rewards points to be earned for simple, everyday banking procedures. Opening a new savings account can earn customers cash back or extra reward points.

Many banks are hooking up with retailers to offer special discounts or exclusive rewards. In the past, these retail affiliates were online based but now customers can also expect rewards and discounts at local locations and not just on a website. Expect community banks and local credit unions to also begin offering rewards based on checking accounts if you use your debit card actively and agree to direct deposit your pay to your bank account.

If you are a regular debit card user, it may be worth your while to check out what incentive programs mean to you. There may be special offers that you are not yet aware of and you could be missing out on those incentives. Check with your bank if you have a debit card and find out what you can be doing to earn more cash back and points simply for doing what you normally do.

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The FBI’s press releases states “Within the last several months, the FBI has seen a significant increase in fraud involving the exploitation of valid online banking credentials belonging to small and medium businesses, municipal governments, and school districts. In a typical scenario, the targeted entity receives a “spear phishing” e-mail which either contains an infected attachment, or directs the recipient to an infected website. Once the recipient opens the attachment or visits the website, malware is installed on their computer. The malware contains a key logger which will harvest each recipient’s business or corporate bank account login information. Shortly thereafter, the perpetrator either creates another user account with the stolen login information or directly initiates funds transfers by masquerading as the legitimate user. These transfers have occurred as both traditional wire transfers and as ACH transfers.”

The money that is transferred from one account is typically then moved into the accounts of others in the know but often into the accounts of the unsuspecting. Criminals who are looking to transfer funds into an account will often use work-at-home propositions to lure individuals into doing the crime for them. The job advertisements are often planted on respected job boards. The general idea of the job entails processing payments for a company. The job seekers agree to receive wire transfers into their own bank accounts and then forward the stolen money to accounts oversees using services like Western Union.

The FBI advises consumers to keep their computers updates with anti-virus software and install a personal firewall. Consumers can visit this website to learn more about the proper software and prevention measures that can be taken to prevent risk. It may also be beneficial to speak directly with your bank about precautions and security measures needed when conducting banking online.

Consumers are also advised to report suspicious activities involving their bank accounts to the Internet Crime Complaint Center. Consumers who have been solicited to work at home on jobs that require transferring funds or sending money overseas should also file a complaint with the center.

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In fact, many banks who used to offer options for keeping fees at bay will now be dissolving those incentives. Some will maintain some level of free services options. Bank of America who maintained fees on checking accounts will be raising its price in June by $3 from the original $5.95; however, Bank of America will continue to waive fees for customers who keep a $1500 balance, open an account online, or for those who set up direct deposits.

Congress is currently mulling over legislation that would put a limit on a bank’s overdraft fees for customer checking accounts. The banking industry has essentially been enrolling people in overdraft protection programs without clear information of opt-out procedures.  Plus, many bank overdrafts can run customers a fee of $35 or more. The profit made on these program fees are an important source of revenue for banks (about $29 million in 2007) . If legislation should cut into that revenue, banks will need to reinstitute fees back into most services. In addition to this legislation, banks as a whole are being looked at more closely because of all the other fees that are being imposed on customers.

There are plans for many banks to begin announcing their intention to add additional fees to previously free services as well as make the necessary adjustments to their overdraft protection programs in the next few months. Customers who do not regularly monitor their monthly bank statements should make a concerted effort to check for changes in their accounts. It is also advisable that consumers not discard mailed communication from their bank, as what many perceive to be junk , is actually important information for consumers about imminent changes being made to their account or valuable opt-out information for bank-sponsored services or programs.

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Overdrafts and Fees
Banks are used to charging overdraft fees (also called Non-Sufficient Funds – NSF fees), they have been doing it for years.  But what is particularly bothersome about this is that the overdraft fees are very expensive.  In fact, they usually top $30.00.  Then, in addition to that retailers add on their own fees which can be as much as $25.00.  Also, a common practice is to try to re-submit the charge again by the retailer.  That results in another fee.  You can have charges of around $100 real quick in this scenario.

Also, banks have begun to offer automatic overdraft protection.  But what this does is prevents them from just rejecting the transaction, and instead allowing it so that they can charge the fees.

Lining Bank’s Coffers
This practice by banks has them raking in more in overdraft fees than they collect on credit card fees.  It has become a big profit center for them and there is nothing that you can do about it.  Most banks will not renegotiate these fees down.  They stand behind their written policies while you drown in a sea of charges that straps you financially.

Security Concerns
Another concern for debit card use is the inherent security risks involved.  This is because debit cards do not have the security protections that credit cards provide.  If you have unauthorized charges on your debit card, then you are out that money unless you can discover who used your card and retrieve the money through legal means.  And the chances of that happening are slim to none.

Consumers are using debit cards more frequently than credit cards these days, so the need to understand the risks and then avoid them is real and necessary.
The federal government is looking at enacting legislation that protects against the usurious nature of the banks practices.  Until then, it is more than likely that you will experience an event such as these on your accounts.  At least knowing the risks should help you be more vigilant with your accounts.

Consumer Debit Card Use Getting Expensive was created by and is property of American Consumer News.

In the last year, banks have been sending out more direct mailings that intend to cross-sell additional products and services than they did during the previous year, while the amount of mail that went to non-customers rose only a slight percentage. Banks have also stepped up their offers for renewing services and upgrading accounts. Typically direct mailers are used to attract the business of new customers, no already associated with the bank. This is still true but banks have come to understand that selling to those who are already clients that have a loyalty can increase profits.

What To Do With The Offers
If you notice that you have been receiving an unusually large amount of mail from your bank, announcing new services and products, you should by all means look at what the offer entails before discarding the information. While a consumer certainly should not feel obligated to renew or upgrade to services they do not need, there can be advantages to the special offers sent exclusively to current customers.

One issue many people fail to stay current on and end up spending cash for no reason is that people tend to use the same bank for years, without much thought to what better may be out there or how much money they are losing in service fees and charges. People tend to get and stay comfortable with their bank unless some big changes are being made. But it is the seemingly small fees that can hurt your finances. Small fees can add up quickly and often go unnoticed by customers who trust their bank with their money. You should start evaluating some of the offers you have coming to you from your banking institution as well as competitors. You may find that you can actually save a good chunk of money by taking advantage of new services or by switching your bank altogether. While junk mail may be frustrating and seem wasteful, there may be a few beneficial new programs or services that you should look into to improve your finances.

Notice Your Junk Mail Pile Getting Bigger? was created by and is property of American Consumer News.

In Case of Emergency

The urgency became apparent after the executives at Wachovia realized that after the failure of Washington mutual, many of the larger corporate clients made an unusual number of withdrawals on their account. The majority of the withdrawal came from account containing more than $100,000. This severally paralyzed Wachovia’s access to operating capital.

Wachovia was approached by Citigroup, who offered a deal with assistance from the FDIC. The original agreement involved Citigroup purchasing Wachovia’s operations and the majority of the assets. The FDIC planned to aid the sale. The wheels were set in motion but never fulfilled. Wachovia has since changed tactics and made the agreement to be acquired by Wells Fargo. One of the main reasons this current action was taken was due to the ability of Wells Fargo to seal the deal without the help of the federal government. Wachovia reportedly is pleased with the arrangements because without the involvement of the government, Wachovia Bank can stay primarily intact and taxpayers would not have to help pick up the tab.

Making the Deal

The official bid was approved by the Wachovia Board on Thursday evening and must still be cleared by the shareholders of the bank. Wells Fargo does anticipate that government regulators will approve the deal and everything will be completed before 2009.

Forget Citigroup – Wachovia Acquired by Wells Fargo was created by and is property of American Consumer News.

Wachovia Bank customers may not know how close they came to not having a banking institution. Last week, Wachovia Bank was running but with strong concerns that the bank would not be open for this week. Before any deals were being worked out, Wachovia did not have a source of liquidity and under those circumstances, the banks could not have opened their doors for business. Wachovia Bank has been working on a merger prior to the most recent events. Over the weekend, the Federal Deposit Insurance Corporation, otherwise known as the FDIC, put pressure on the bank to make a deal.

Close To Collapse from Withdrawals 

The urgency became apparent after the executives at Wachovia realized that after the failure of Washington mutual, many of the larger corporate clients made an unusual number of withdrawals on their account. The majority of the withdrawal came from account containing more than $100,000. This severally paralyzed Wachovia’s access to operating capital.

Several Deals on the Table

Wachovia was approached by Citigroup, who offered a deal with assistance from the FDIC. The original agreement involved Citigroup purchasing Wachovia’s operations and the majority of the assets. The FDIC planned to aid the sale. The wheels were set in motion but never fulfilled. Wachovia has since changed tactics and made the agreement to be acquired by Wells Fargo. One of the main reasons this current action was taken was due to the ability of Wells Fargo to seal the deal without the help of the federal government. Wachovia reportedly is pleased with the arrangements because without the involvement of the government, Wachovia Bank can stay primarily intact and taxpayers would not have to help pick up the tab.

The official bid was approved by the Wachovia Board on Thursday evening and must still be cleared by the shareholders of the bank. Wells Fargo does anticipate that government regulators will approve the deal and everything will be completed before 2009.

Forget Citigroup – Wachovia Acquired by Wells Fargo was created by and is property of American Consumer News.

1. Do you always go to the same supermarket?

If you do, you could be missing out on some big savings from the competition. Grocery stores, especially local types, typically offer higher prices in order to stay in business against the bigger chains. While it is good to support your local businesses, sometimes budget-conscious families need to look for the best deals and stay current on the sales at each store within a reasonable driving distance. Signing up for frequent shopper cards are a good way to get extra discounts and stay in the loop about what’s on special each week.

2. Do you always go to the same place for a “night out”?

If you are lucky enough to get out of the house once a week, it may be worth your while to break the habit of eating at the same restaurant, going to the same movie theater, or whatever activity you find you do time after time. Try checking out the local newspaper calendar or local visitor’s bureau. Not only will you find something new to do, you may find something free to do.

3. Do you stop each morning for a convenience store coffee?

While a buck or two may not seem like a big deal for a cup of coffee, sit down with a calculator and let the numbers do the talking. Getting a $2 cup of coffee 5 days a week can cost you over $500 a year. Instead, spend $40 on a good coffee maker that has a timer and wake up to fresh brew each morning for pennies.

4. Do you have the same bank account since you were a teenager or first married?

You may want to take a second look at what else is out there if you haven’t changed banks in awhile. There is a bit of competition between banking institutions and the fees and charges you pay at one place may not exist at another. Call around and see if you can get a better deal by switching banks. Make sure you still have access to comparable services that you have now and get rid of the services you never use.

5. Do you struggle making rent or your mortgage payment?

For those in a particularly hard cash crisis, it may be beneficial to look at other housing alternatives instead of banging your head against the wall each month trying to come up with the cash. Consider any lifestyle changes that have taken place since you moved in. Maybe the kids are out of the house and downsizing your home wouldn’t be a bad idea.

Do Something New…and Save a Few $$$ was created by and is property of American Consumer News.

When looking for a new bank, take the time to consider what aspects of banking mean the most to you, Write down a list of important items and any corresponding questions you may have for the manager. Schedule an appointment if necessary to go over your concerns. Cover everything from ATM fees to the cost of an account, ask questions about direct deposits and any other service you are already used to having and see how it compares to your current bank. Check out the interest rates as well. The banking industry is competing for your business so it is in your best interest to see which bank will best fulfill all of your needs.

If you find a new bank that undeniably beats out your bank for services and fees, do not jump right in. It may be worth your time to approach the manger at your current bank and discuss your concerns, as well as the terms of the competition. They may be will to work with you and give you comparable service, saving you the hassle of transferring your money and information to a new bank.

Re-Evaluating Your Bank May Save You Money was created by and is property of American Consumer News.

Currently UnivestDirect is offering a 4.50% APY on any money in one of their online savings accounts. The minimum to open the account is $1.00 and your money is FDIC insured. Interest is compounded daily and credited monthly. Unlike many banks that have limitations on how much money you can transfer in and out of the account, UnivestDirect has no limitations on their online checking and savings for transfers. There are no monthly fees to speak of and they offer free online banking.

A great feature of the UnivestDirect online savings account is that you can get a free ATM card with your account, so you can withdraw money at any ATM machine. UnivestDirect has a deal with the Allpoint network so that you can use ATM machines on the Allpoint network without paying any sort of usage fee. Since Allpoint has ATMs just about anywhere, it’s very easy to get money out of your account.

UnivestDirect is also offering a very competitive online checking account. It’s not the best we’ve seen, but it’s definitely up there. The current annual percentage yield is 3.55% and your money is FDIC insured. You need $100.00 to open the account and need to maintain a balance of $1.00 to accrue interest. Interest is compounded monthly and credited monthly. You’ll receive $500 in overdraft protection and a free debit card with the same functionality as the ATM card provided with their savings account. Online banking and online bill-pay is completely free as well. The one downside of the account is that they do not offer free checks. They cost $18.85 for 120 checks, but you can get cheaper checks elsewhere from places such as Current and get a good deal that way.

Overall UnivestDirect has a very competitive offering in a market that’s been flooded by all sorts of banks who want to get in on the online savings market. It’s definitely worth taking a look at if you want to open an online savings account in the near future.

Banking Reviews: UnivestDirect Offering Amazing Deals on Online Checking and Online Savings was created by and is property of American Consumer News.

As part of our advertising strategy, American Consumer News has the option to advertise some of E-Loan’s products. We recently receive a message from them which stated the following, “In order to stay ahead of the current mortgage cycle and enable E-LOAN to maintain its leadership position in the industry, E-LOAN will begin scaling back some operations/programs to reduce its cost structure.” The program they were mentioning in the e-mail was its internet affiliate advertising program.

E-Loan made no statement as to what other divisions and programs they would be scaling back. E-Loan will likely also be laying off a number of employees as they stated there will be a “resizing of E-LOAN’s work force and reduction in cost.” The cost cutting measures seems to be of quite a significant size and a company-wide activity. These actions indicate a clear lack of capital, and in order to be able to remain profitable, E-Loan will significantly need to cut-back on their business expenses.

It’s no surprise that more of the major banks are being hit by financial problems because of the sub-prime loan debacle. Almost all of the major nation-wide banks are hurting because they over-extended credit to people who in all honesty could not afford to pay them back. E*Trade, Bank of America and E-Loan are the first banks to reveal how public their financial problems are, but there is no doubt that more banks will come forward and make drastic changes in order to remain profitable.

Late breaking rumors even indicate that there may be massive lay-offs at Citibank in the near future. Upwards of 45,000 people could be laid off, possibly even today. We’ll be sure to keep you informed about any major announcements the company makes.

Featured Link: Using a secured loan can save a homeowner hundreds in interest when compared to an unsecured loan, due to the fact that secured loans are secured against a property means that lenders are willing to reduce the APR on a loan due to the reduced risk.

Falling Like Dominoes: E-Loan Next Major Bank to Get Hit By Sub-Prime Mortgage Woes was created by and is property of American Consumer News.

The US House recently voted to enact the “Mortgage Reform and Anti-Predatory Lending” act which would do a number of things to make sure that consumers know what they’re getting into when they take out a mortgage and ensure that they can only take out loans that they can reasonably afford to pay back.

The bi-partisan legislation passed on a 291-127 vote and would establish a federal licensing and registration system for mortgage lenders. In addition it would establish a new department in HUD called the office of “Housing Counseling” which would assist consumers in avoiding a foreclosure. The legislation would also make it illegal for banks to give loans to consumers that there’s no reasonable way for the consumer to repay and prevent lenders from pushing predatory loans on to consumers. The legislation will now move onto the senate and then the desk of the president.

Banks and other mortgage lenders have been fighting tooth and nail to prevent this legislation from being passed. They have absolutely refused to work with congress in coming up with some sort of reasonable compromise and have nothing to say on the legislation but “No Way, No How!” Major banks’ lobbies spent several weeks trying to derail the legislation while it was in committee and are now trying to prevent it from passing in the US Senate.

These large financial institutions have shown that they have not policed themselves properly. Banks which lend mortgages to people believe they have no responsibility to sell you the product that makes the most financial sense, but rather the one that makes them the most money. They have put people into mortgages which they simply cannot afford to repay by qualifying them on low teaser rates rather than what they would actually be repaying over the long haul.

Banks hate this legislation because they do not want to have what’s called as “fiduciary responsibility” to their customers, meaning that they would have to give them the product which is the best deal for the consumer, not the banks pocketbook. They’re also opposed to the bill because it would make it so that people had to qualify based on the actual payment, not the teaser rate. Mortgage companies are unhappy with the legislation because it would require them to spell out in plain English what the true cost of the mortgage is on a monthly basis as well as the costs and fees of the loan to the consumer.

By working against this legislation, banks are showing that they have little concern as to what’s in the best interest of the consumer and are rather only concerned about increasing the number of mortgages they originate and their short term quarterly profits.

Major Banks At it Again, Fighting Against “Truth in Mortgage Lending” Legislation Which Would Decrease Foreclosures! was created by and is property of American Consumer News.

For the last five years or so, many of the nation’s major banks and financial institutions have been originating all sorts of non-traditional mortgages such as interest only loans, adjustable rate mortgages, mortgages with balloons, fifty year mortgages, and a whole slew of other financial products that no consumer should ever buy. Unsurprisingly, many consumers could not continue to afford their mortgages as they adjusted upward and the home-buying market is very weak right now, leading to all sorts of delinquencies and foreclosures and now it’s starting to catch up with Bank of America and E*Trade.

All sorts of rumors are flying about a potential bankruptcy over at E*Trade. Said rumors actually dropped their stock price by 60% after the news hit. After news of a potential buyout or takeover hit, it rebounded slightly. Unfortunately there are 60,000 individuals who will be out of luck if E*Trade were to file bankruptcy. These people have more than $100,000 invested into FDIC insured accounts through E*Trade and would be out of a lot of money if the company were to go bankrupt. If you fit into this category, drop your savings inside of E*Trade to less than $100,000, that way you won’t lose your money if the bank goes under.

The exotic mortgages that Bank of America were giving out are starting to catch up with them as well. The financial institution had to provide $600 million dollars to avoid having the share-price of their money market funds dip below $1.00. Traditionally money markets are designed to keep at exactly a price of $1.00 per share, and it’s considered very bad if the price ever drops below that. Bank of America had used money from their investors in money market funds and invested that money by loaning it out to people in all sorts of exotic mortgages. When the real estate market collapsed in on itself, the price was dangerously close to “breaking the buck.” BOA did the smart thing to replenish its money market fund, because if the share price had dropped below $1.00, most investors most likely would have taken their money elsewhere.

Banks made a major mistake by offering mortgages to people who cannot afford to pay them back. One of the major financial magazine’s covers this week features a number of major bank presidents and the headline, “What Were They Smoking?” in regards to the sub-prime mortgage mess. Chances are we will see other banks hit hard times because of woes in the real estate market. Make sure that your money is at a solid and performing bank and that you do not have more than $100,000 at any particular financial institution.

E*Trade and Bank of America Get What’s Coming to Them for Offering Exotic Mortgages was created by and is property of American Consumer News.