Massage & Bodywork

January/February 2011

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10 BANKING TIPS 1. AVOID BANK CHARGES One of the techniques many banks are using to beef up their bottom lines is increased service charges. The average ATM service charge doubled between 1998 and 2007, and overdraft fees brought in $17.5 billion in revenue in 2006, up from $10.3 billion in 2004, according to the Center for Responsible Lending. If you ever get careless and bounce a check, you'll likely get hit with an overdraft fee, one of their most profitable ploys. Most banks now automatically enroll their checking account customers in an overdraft program that allows them to hit you with an overdraft charge of as much as $35 every time you write a check for more than your account balance. According to a study by the Consumer Federation of America, 16 of America's largest banks charge tiered overdraft fees that go higher after the first one. Some banks set no limit on the number of overdraft charges in a single day, so a little carelessness on your part could cost you a bundle. To minimize your chances of getting caught in this trap, watch that checking account balance with an eagle eye. 2. ANALYZE BANK STATEMENTS Those monthly bank statements may not make for exciting reading, but they could make for profitable reading. Banks can and do make mistakes, so you need to make sure you're not being hit with incorrect charges. It will only take a few minutes to examine each charge on your monthly statement. The more familiar you become with your statements, the easier it will be to see errors and overcharges. 3. ERASE THE PAPER TRAIL Identity thieves and scam artists are everywhere these days, and people who are careless with banking documents are their favorite targets. Leaving old bank statements, voided checks, or other banking documents where others may find them makes you an easy target. Every one of your old or discarded bank documents should be shredded. 4. USE A STRONG ONLINE PASSWORD Online banking is so convenient and easy these days that more consumers (25 percent) now prefer the speed and convenience of conducting banking transactions on the Internet rather than visiting their local branch, according to a survey by the American Bankers Association. The preference for online banking was followed by branch visits (21 percent) and ATM use (17 percent). While experts agree that online banking is as safe—perhaps even safer—than conventional banking, it's important not to be complacent about your online password. Resist the temptation to use something as simple as your birth date. Use a combination of letters and numbers chosen at random, and avoid doing your online banking from a public computer. 5. DEPOSIT INTO A MONEY MARKET ACCOUNT While the interest rate on virtually all banking accounts is sickly these days, it's practically nonexistent on checking accounts. That's why you should never make your deposits into your checking account. Open up a money market account at your bank and ask to have it linked to your checking account. Then, make all of your deposits into the money market account where your money will draw a better interest rate (rates will likely be going up soon, making this step worthwhile). Then, transfer money from your money market account to your checking account as needed to cover checks. 78 massage & bodywork january/february 2011

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