The advent of Internet technology has revolutionized the way we live. We order food, buy presents, communicate, make travel arrangements, search for information, read the newspapers, and even find love and friendship because of what it can do. Its become such a staple of modern life that it’s hard to imagine how we ever lived without it. One area which has been transformed by the Internet is banking and money management. Many people do their banking online exclusively, making a trip to the bank a thing of the past, and writing an actual, physical check a novel experience.

When you open up an online savings account, for example, you can manage your money very easily and conveniently, 24 hours a day. You can check your balance, see how much interest you’ve earned, check on all of your deposits and withdrawals, move money from one account to another, get email alerts from your bank or credit union regarding specific transactions and events, and even get extra money by referring people to your bank as fellow customers. You can also review your bank statements online, thereby avoiding wasteful paper. Banks will also post frequently asked questions – “FAQs” – online next to your account so that you can find out what’s what should their information line be closed for the day. Also, when you make a withdrawal from your online savings account, you no longer need to get a paper receipt for it, since the transaction will be recorded online. This cuts down on paper waste that can accumulate in pockets and drawers and just about any other surface. That in itself is a great benefit to having an online savings account.

If you’re thinking about opening an online savings account, be sure to sit down or speak to a qualified bank representative to get all the information you need. Once you commit to online banking you’ll find it hard to go back to the old-fashioned ways of managing your money.

Earning interest writing checks. The current instability in the financial and credit markets is leading many banks to entice consumers with something most of us don’t really think about: interest-bearing checking accounts. They’ve been around for years, but now they’re attracting more interest from investors because some are offering rates that beat the national money market average. Didn’t someone famous – or smart, at least – say that every crisis bears within in it the seeds of opportunity?

Interest-bearing checking accounts are, you guessed it, checking accounts which pay an interest dividend. They come with strings attached, of course – you’ll almost always be required to maintain a minimum balance in order to avoid monthly fees, for example, and if you end up paying those fees, it could erase the earnings you were just overjoyed to see on your balance. Not only that, but as banks scramble to increase their profit margins, the price of ATM, overdraft and monthly service fees have all spiked. Another important consideration for many people will be the fact that the best rates will be offered for those with the biggest deposits. ING, for example, needs $100,000 in order for you to qualify for their 3.05% rate. Most of us deal in smaller sums than that. (OK, a lot smaller.)

Like we said, however, banks are looking for more customers and more money, and some have begun offering very attractive rates for their interest accounts. One, First Federal Bank of California, is offering a 4.16% rate on its interest-bearing accounts to California customers. Another in the New York City area, E Trade Bank, offers a 2.9% rate. Who knew you could save money – come to think of it, who knew you could make money – on a checking account?

Interest-bearing checking accounts just might turn out to be an unexpected growth area resulting from the current financial uncertainty.

A 10 point Declaration of Financial Independence by ING Direct.

A perfect message for these financial times. ING Direct has authored a new declaration titled “We, The Savers” which speaks to being in control of your financial life. We can’t individually solve the huge financial issues our nation is facing, but if more people took a few simple steps forward towards additional financial responsibility we are all collectively better off. The ING Direct Declaration of Financial Independence is a great start.

Here is the list:
1. We will spend less than we earn.
2. We will use our home as a savings account.
3. We will take care of our money.
4. We will defend our credit worthiness.
5. We will ignore unsolicited credit card marketing.
6. We will know the cost of borrowing.
7. We will invest for the long term.
8. We will take care of the things we have.
9. We will remember what matters.
10. We will be heard.

You can read more about each of the declarations at WetheSavers.com, even sign it and see others that are participating. If you agree, sign it and pass it on. A great touch is the free bumper sticker signers qualify for at the bank’s online store. We all need a new bumper sticker to cover the “I love my SUV” one, and it’s a great way to start a conversation about taking more control of your personal finances.

Time limit on ETrade’s online savings account bonus.

For the next couple of weeks, E*Trade is offering a $25 bonus to new customers who open an online savings account by October 27 with a $5,000 minimum balance by November 10. If you meet the qualifications, you will receive the bonus by November 24. Deposits of funds from existing E*TRADE Bank and E*TRADE Securities accounts are not eligible for this offer.

More important, the 3.30% APY the online savings account is paying is very competitive. You can link external accounts to E*Trade in order to transfer your funds quickly to and from another bank and the transfer process is reportedly quick; you won’t lose any interest while your ACH deposit is in transit.

I now pronounce you…..what?

A few weeks ago Citigroup, with a little help from the Fed, had agreed to support and marry Wachovia. Yesterday, the Federal Reserve Board approved the sale of Wachovia to Wells Fargo in a transaction that would not require the government’s involvement and would create the largest bank branch network in the US. Banking giant Citigroup said Thursday it had ended talks with Wells Fargo about reaching an agreement to acquire parts of the struggling bank Wachovia and is no longer looking to buy any of Wachovia’s assets.

If you thought your new savings passbook would read Citi, it will probably look like a Wells Fargo one by year-end. Shareholders of Wachovia still must approve the sale.

E-LOAN is not just loans.

From the radically simple lender comes a good rate on a 6 month Certificate of Deposit. Lock a minimum $10,000 and you will earn 4.15% APY for 6 months – penalty for early withdrawal. All deposit products offered through E-LOAN will be opened through Banco Popular North America (BPNA), a New York state chartered bank insured by the FDIC that is the direct parent company of E-LOAN

Bank customers will see a temporary increase in FDIC coverage to $250,000 per depositor.

Included in the Emergency Economic Stabilization Act of 2008 was the provision for increasing Federal Deposit Insurance Corp. protection per depositor to $250,000 through December 31, 2009. The previous limit of $100,000 has been around since 1980 and was probably long overdue for an increase. The legislation provides that the coverage return to the lower limits at the end of next year, an unlikely event.

The bill will make it easier for savers to keep their money at one bank instead of spreading it around to keep the deposits fully protected. We wouldn’t expect this to have a positive effect on savings rates, probably the opposite in that banks pay the premiums for the FDIC coverage.

The expectation is that confidence in banks will increase and limit the kind of bank runs that hobbled Wachovia, WaMu and Indymac. It also increases the liability at the FDIC where $45 billion in funds protects $4.5 trillion in bank deposits.

HSBC Direct is offering a 4.00%APY Certificate of Deposit for a 6 month term, only available online.

HSBC have recently been increasing their efforts and ease at which you can transact online with them.
Some details; APY is only good online and qualifying deposits must be new money. New Money means funds not previously held by any member of HSBC Group within the past consecutive six months. A penalty may be imposed for early withdrawal and is equal to 30 days of simple interest. Minimum balance to open and obtain APY is $1,000.

HSBC Direct is part of one of the largest banking groups in the world and is FDIC insured.

Another bank bites the dust. Citigroup agreed to a takeover of the troubled Wachovia in yet another government engineered rescue.

With huge losses in its mortgage portfolio, the nation’s sixth largest bank is now the latest to fail – sort of. “Wachovia did not fail; rather, it is to be acquired by Citigroup Inc. on an open bank basis with assistance from the FDIC,” the Federal Deposit Insurance Corp. (FDIC), the banking industry regulator, said.

Citigroup will buy the majority of Wachovia’s operations, including the bulk of its assets and liabilities. Citi will only assume up to $42B of losses from a pool of $312B of loans held by Wachovia; the FDIC will absorb losses beyond that and take a stake in Citigroup for the guarantee.

The takeover will create a retail bank with almost 10% share of the US market deposit sector in the continuing consolidation of US banks. Its business as usual if you have an account with the bank and no word on keeping the Wachovia name and brand.

As discussions heat up at WaMu over a possible sale, cash infusion or government-assisted transaction, so is their savings account rate. WaMu increased their online savings account rate to 4.00%APY, as they say – “sweeter savings”.

Just keep an eye on your FDIC limits.