Many often wonder that when they see a CD rate that seems too high compared to industry standards, they just assume it’s a scam or too good to be true.  While sometimes this can be the truth, it necessarily isn’t always true.  When it comes to higher CD rates, there are a few things you should look out for before you submit your application.

Check the terms and conditions

Every legit bank online or in person will have a set of terms and conditions when it comes down to the CD you want to apply for.  If the rate sounds too good to be true, there are a few things you’re going to have to note.

Does the bank require that you do something each month?

In order to make money on your CD, the bank may require that you sign up for direct deposit or a debit card and make at least x amount of purchases each month to keep that rate in tack.  If you don’t keep these minimum requirements, they will drop you down to the default rate.  Keep in mind that the banks rarely give you a warning; instead they just drop you without further notice, so it’s important that you remember to make those minimum requirements each month.

How do I know it’s legit?

In order to make sure it’s legit, make sure you check for the FDIC insurance logo and also check the FDIC’s main website at fdic.gov.  If the bank is listed, the bank is legit.  If it isn’t, I would highly suggest you stay way or invest at your own risk.  If the bank isn’t FDIC insured and the bank goes under, you’re out of luck!  If the bank is insured, go back to step one and see what the requirements are.

Sometimes the banks will offer a nice promotional rate with no strings attached just to draw in new customers or receive a hefty set of money for other ventures.  Even though it sounds too good to be true, it isn’t!  The next time you see an unbelievable rate, jump on it, it may be the last time you see it!

M+T Bank is making a big impact this week offering some very nice CD rates.  Some of their rates are among the #1 in the industry.

M+T Bank aka Manufacturers and Traders Trust Company is located in the state of New York and has been doing banking for over 150 years.  All of M+T Bank’s CDs are open to everyone.  The rates are listed below –

For more information, visit M+T’s main website.

The past few weeks we have seen a few increases in CD rates but the money market has been consistently going down or staying still.  For the first time in nine months, WTDirect raised their rate from a 3.16% APY to a 3.26% APY.  Is this a sign that the market is making a turn?  Let’s hear your thoughts.

For the week of June 17, 2008, Discover Bank has been offering some pretty spectacular deals.  Right now, Discover bank is holding the #1 industry spot for the 18 month, 2 year, 3 year, and 5 year CD charts.  All of Discover Bank’s certificates of deposit require a minimum of $2,500.

Below are the rates that are accurate as of 6/17/08 –

All of Discover Bank’s CDs are FDIC insured and for more information or to apply, visit Discover Bank’s website or call 1-800-347-7000

Right now, if you act quickly, Bank of America is giving all new customers who open up a new checking account $50.  In order to receive the $50 bonus, you must open up your account with at least $100.

This offer will expire on September 30, 2008.

When you apply on the website, make sure use offer code AOU260608

To apply, please visit Bank of America’s website.

We all know that the internet is filled with so much information and while it’s hard to find all the information you’re looking for, we try our best to find informative sites that can help your financial needs.  Today, I’m going to tell you a little bit about a cool website I found, checkingfinder.com.

Checking Finder is a fairly new website that has been endorsed countless times by the radio show host, Dave Ramsey who focuses on getting consumers out of debt.  Checking Finder is a website dedicated to anyone looking for a high yield checking account.  It’s a website that requires little to no work to find the best bank in your area.

Here’s how the website works –

When you approach the site, you will put in your zip code.  From there, a list of banks in your area will pop up with the interest rates they are currently offer.  Once you find a bank that looks interesting, you can click on the bank icon and view more terms and rates along with reviews.  Right now, the website doesn’t have a lot of banks listed on the website but it looks like it very great potential, it’s worth checking out if you’re looking for a great checking rate.

Pentagon Federal Credit Union is offering a deal you might not want to pass up.  Right now if you sign up for their credit card, you will be able to get a 2.99% APY on the life of any balance transfer.  You can apply for the credit card on their website and do all of your transfers straight online.

A balance transfer fee of 1% will apply to the transaction.  The minimum amount will be $10 and the maximum will be $100.

Discuss this card on FatWallet or apply for the card on their main website.

Whether you’re looking to open up a new CD or a savings account with a bank, the bank has to make their money somehow and it usually comes from those pesky fees that are located in the fine print of your application.  To make it easier for you and me, I’m going to break down the top three fees that people generally overlook.

The overdraft fee

Ah yes, the overdraft fee.  This is the fee that all the banks love because this is where they can get a lot of money from you.  An overdraft fee is generally when you over spend on your checking account.  Let’s say you have $100 in your checking account.  You go out and blow $110 of it thinking that the other $100 check cleared making it a total of $200.  Well, if that check hasn’t cleared, your balance will be -$10.  On top of the -$10, the bank is going to charge you anywhere from $20 for the overdraft fee.

Lesson:  Always make sure you have money in your checking account.  Keep track of your spending!  The best place to do this generally is online.

Paper fees

The less work the bank has the do, the happier they are.  With the internet and the computer age, no one should be getting paper statements anymore.  Did you know that some banks actually charge you if you still want a paper bill?  Make sure your bank isn’t charging you for this service.  This will generally range anywhere from $5 and on.

Lesson:  Make sure you receive you statements electronically via e-mail or your bank account.

The last minute bill pay

Did you forget that you had to pay a bill and it was due tomorrow?  Don’t worry; the bank will be happy to send it tomorrow for an extra $15 or so.  Check and see what the bank charges if you need to get your money somewhere overnight.  You may find that sometimes it’s cheaper to send it yourself rather than the bank.

Lesson:  Don’t wait till the last minute to pay your bills.

If you’re anything like me when you opened up your first brokerage account, you were probably confused on what was out there that would make the most for your money when it came to investing.  Learn about investing was one thing but the next question was, ‘Where do I do the investing?”.  There are a ton of places online and in house that can help you invest but the first things you’re going to have to ask yourself are a few questions.  The reason I’m writing this today is to help you better understand how brokerage firms work and how you can get the most for your investing portfolio.

What are the costs?

The first thing you’re going to want to do are look at the costs of your firm.  How much are they going to charge you for trading, etc.  Since all the prices are going to vary, make sure you look at the firm’s price list.  The best thing to do is to simply print out or save the price list from each firm and compare.  If you only intend on using the firm for stocks, then compare the stock prices.  You’ll find that some places are cheaper in some areas.

The selection of stocks, mutual funds, etc.

Some firms only allow you to trade in certain markets.  If you’re going to be a heavy investor, make sure you find out how many mutual funds they offer and what markets you can trade on.  Services such as E*Trade allow to trade on more than six global markets.  If you’re going to be an aggressive day trader in the future, this will be very important to you.

The customer service

Just like a store you shop in, you don’t want to deal with a place that doesn’t care about their customers.  The best way to see if the firm you’re looking at has great customer service is by checking the reviews online or asking around to friends and family.  You’ll usually get a great idea of how good the customer service is just by reading reviews online.  Another great way to find out also is by calling the number on their website.  This alone will sometimes give you a great idea on how good the company will treat you.

These are the top three things that you should be aware of when you’re looking for your first brokerage firm.  Remember, a brokerage firm is just like a bank.  If you’re unhappy with the service, you can simply run away to another one.  Make sure that you do your research and know what you’re doing with investing before you open an account.  The more knowledge you have, the better off you’ll be.

E*Trade is at it again offering yet another industry leading high yield savings account.  Now, don’t get confused with this and a money market account because both of them are very different when it comes to fees and transactions.

As of June 2008, E*Trade is offering a 3.15% APY savings account with no fees and no minimum balance required to open.  I think the no minimum balance alone is worth signing up.   E*Trade is a very reputable company and has received a lot of positive reviews over the years.  E*Trade is FDIC insured.

One of the nice things about E*Trade’s savings account is that you’re able to tie your bank account to their account and you can receive your transfers within minutes.  The account also allows you to transfer money to your other E*Trade accounts as well.

For more information and all the fine print, please visit E*Trade’s official website where you can sign up for an account within minutes!