Recession Survival Guide - Part 1

We should always be looking for ways to save money or make the best use of our money, though most of us never really look until it becomes a necessity. Take for instance your checking account. Why not move your money over to an interest earning checking account? Get paid for your deposits!

Typically, the strictly online banks such as E*Trade offer a much higher interest rate than typical brick and mortar banks. (E*Trade boasts that their rates are 4 times higher than the average) Lately, however, the local and regional banks have gotten into the mix. This recession has given them an opportunity to steal away customers from their larger competitors. First Federal (one of our local banks) is offering 2.51% APY. Just compare the rates at your local bank with the rates among the online banks to see who offers you the highest interest rate.

Don't forget to compare the savings account rate as well. Try and get both the highest interest checking rate and the highest savings account rate if possible. Also, check to see if the bank offers free transfers from your savings account. You can save yourself a ton of money by using a savings account as your automatic overdraft protection instead of the conventional overdraft account that charges you interest. Our bank gives us 6 free transfers a month so not only do we avoid the high interest but we save on the NSF fees as well.

Another alternative is to join a credit union. The major advantage here is that credit union is non-profit so all the profits are returned to the members of the credit union in the form of lower interest rates on loans and higher yields on savings. Even if the savings rate is better elsewhere, it's still a great idea to join because the loan rates are so low. (you have to be a member to get these rates) We joined our local credit union for this very reason. All it took was a $50 deposit to get a full percentage discount on a home loan!