Where do you go to find the best interest rates? With the Occupy Wall Street and Bank Transfer Day movements in the news, I lot of folks have moved from big banks to credit unions. And that raises an important question–do banks or credit unions have the best interest rates?

Now in some ways it’s a silly question. Depending on what type of account or loan you need, sometimes a bank will be your best bet, and sometimes a credit union will be the better choice. But I did find one source that claims to survey financial institutions for the best rates. The resource is the National Credit Union Administration, an independent federal agency.

NCUA publishes a quarterly report comparing the average savings and loan rates at credit unions and banks. The most recent report generally showed CU’s as have the best rates on savings products and loans, with the exception of mortgages. Banks offered lower mortgage rates than CU’s. Here’s a snapshot of the findings:

The best rates above are in bold, and you can find the full report here (.pdf).

When I first looked at these rates, something didn’t seem right to me. In the course of writing for the Dough Roller since 2007, I’ve looked at a lot of interest rates from both banks and credit unions. And I know for a fact that some of the best rates come from banks. And then it hit me.

I never look at averages. Averages are great for an academic study, but absolutely useless when it comes to actually finding a financial institution. And my bias is always towards the best rates, regardless of whether they come from a big or small bank or a credit union.

But here’s the real kicker. Much of the time the best rates with the lowest fees come from online banks. So I went to some of my favorites to see how they compared to the above interest rates. Here’s what I found (Rates are as of December 16, 2011, except for CU average rates, which are based on the NCUA’s 2011 3rd Quarter Report):

• 5 Year CD Rates: CU: 1.93, Discover Bank: 1.90–CUs win
• 1 Year CD Rates: CU: .67, Ally Bank: 1.00–Ally wins
• Money Market: CU: 0.28, American Express Bank: 0.90–Amex wins
• Interest Checking: CU: 0.17, FNBO: 0.70–FNBO wins

The only thing that surprised me in the above comparison is that online banks didn’t take every category. I guess credit unions have cornered the market on 5-year certificates of deposit.

Turning to credit cards for just a moment, I’ve never been a fan of truly low interest cards. That may seem crazy, but here’s why. You can find cards that charge less than 10% interest (forget the averages listed above, some credit cards have much lower rates). For example, IberiaBank cards offer rates as low as 7.25%. The problem is that you need to have truly excellent credit to qualify. the vast majority of consumers can’t get these cards, and those that do probably don’t carry a balance on the card from month to month anyway.

Now none of this is intended to cut down credit unions. If you doubt that, check out my article on how to find the best credit unions. Rather, the key to shopping for any financial product is to find the best rates available. If they come from a credit union, that’s great; if they come from a small bank, terrific; and if the come from a super-humongous behemoth of a bank, so be it.

There’s only one thing that should be influencing your decision when it comes to banking–”Show me the money!”

Banks are robbing us blind. As we mentioned last week in our article about how to order checks online, ordering check refills from your bank can be a costly mistake. All banks do is pass the order off to another company, and then mark up the costs to consumers. Instead, there are several websites that offer checks by mail for a lot less than what your bank charges.

To help you find the best deal, we put together this side-by-side comparison of websites that offer cheap checks online. All the prices we have listed are for the basic blue check style. There are numerous check designs available, however, if you are willing to pay a little more.

Check SuperStore

At Checks SuperStore you will find checks for you personal account or business account at a reasonable price. It offers thousands of designs from which to choose, including sports, flowers, stripes, solids, animals, and cartoons. They offer online promotions, and you can sign up to receive special email offers. The standard shipping is 3 to 5 business days and the cost is calculated based on the product you are ordering, the quantity, and shipping zip code.

Singles – 125 Checks Per Box
1 Box Of Singles $12.99
2 Boxes Of Singles $24.99
3 Boxes Of Singles $37.99
4 Boxes Of Singles $49.99

Duplicates – 100 Checks Per Box
1 Box Of Duplicates $15.99
2 Boxes Of Duplicates $29.99
3 Boxes Of Duplicates $46.99
4 Boxes Of Duplicates $59.99

Checks Unlimited

Checks Unlimited was the first major direct retailer to specialize in checks. Today, they have grown to offer over 70 personal check designs — plus a full line of address labels, checkbook covers, check-related accessories, and a complete line of business checks. Checks Unlimited has a variety of special deals, and you can sign up for emails receiving discounts. With standard delivery your checks will arrive in 5 to 10 business days and this delivery option is free. If you choose UPS the cost is $8.95 and it’s 3-5 business days. Here’s a look at the pricing for Checks Unlimited:

Singles – 125 Checks Per Box
1 Box $19.99
2 Boxes $29.98
4 Boxes $48.92

Duplicates – 100 Checks Per Box
1 Box $23.99
2 Boxes $37.98
4 Boxes $60.92

Carousel Checks

At Carousel Checks they focus on specialty items that you will not find with other check printers. All of their designs are copyrighted and/or licensed from the particular artist, amusement park, or company. You can choose from their many designs or even have your own photo printed on the check. The shipping charges are based on the size of your order and it takes about 5-7 business days to receive your order. For standard shipping it ranges from about $6 to $20.

Singles – 126 Checks Per Box
1 Box of Singles $6.99
2 Boxes of Singles $13.98
4 Boxes of Singles $27.96
8 Boxes of Singles $55.92

Duplicates – 102 Checks Per Box
1 Box of Duplicates $9.99
2 Boxes of Duplicates $19.98
4 Boxes of Duplicates $39.96
8 Boxes of Duplicates $79.92

4 Checks

4Checks.com specializes in check printing and offers a variety of fun designs. They have all sort of design options from adding your own photo to your favorite organization. Plus, 4 Checks frequently offers discounts. You will often find a special promotional code featured on its homepage giving a percentage off your order or free shipping. The standard shipping charge is $6.50 for the 1st box of checks and an additional $1.75 for every box thereafter. Orders are typically received within 5 to 12 business days. Here’s what some of their current prices look like:

Singles – 125 Checks Per Box
1 Box $14.95
2 Boxes $21.90
4 Boxes $36.80

Duplicates – 100 Checks Per Box
1 Box $18.95
2 Boxes $29.90
4 Boxes $49.80

VistaPrint

Just recently I used Vista Print for my business card order and I am very pleased with its product. VistaPrint offers just about everything you need for home or your small business. They have a nice selection of check designs and you can even add your own logo to your check if you desire. They also offer high-quality printed marketing materials, promotional products and marketing services such as copywriting, design, websites and postcard mailing. The shipping rates are based on the weight of your order and how fast you want it delivered. For a basic order of checks that are delivered by the postal service it can take up to 21 days and it will cost you between $5 and $20, again based on the size of your order. They price their checks a little different and it’s based on the number of checks you want. Here’s the breakdown:

Single Checks
25 checks $2.49
150 checks $4.99
300 checks $9.99
450 checks $14.74
600 checks $19.74

If you’ve ordered from these or other check companies, please share your experience in the comments below.

Rather than spend a lot of money this Black Friday weekend, ING Direct is offering up a different suggestion.  For three days only, ING Direct is enticing new customers to save money (instead of spending it) by giving cash bonuses for new deposit accounts.  Not all deposit accounts qualify for this promotion and it’s available for a very limited time (November 25th – November 27th).

In order to qualify for the cash bonus, you must sign up for one of the three following accounts:

• Electric Orange Checking Account
• Kids Savings Account
• MONEY Account

ING Direct Electric Orange Checking Account

The ING Direct Electric Orange checking account is a fee free account which many consumers have turned to in the wake of minimum balance and debit card fee charges.  During this promo, all new account holders will earn a $107 cash bonus after following one important rule:

1. Open Electric Orange November 25^th – 27^th and make a total of 5 purchases (either signature or PIN-based) using your Electric Orange Card or Person2Person Payments (or any combination of the two) within 45 days

Your cash bonus will appear in the account on day 50, at which point the terms of the bonus are concluded.  You can use that money for anything you’d like and all money saved within an Electric Orange checking account will receive interest according to the below tier structure.

Cash Balance	Interest Rate
$0 - $49,999	0.20%
$50,000 - $99,999	0.85%
$100,000+	0.90%

ING Direct Kids Savings Account

Somewhat new to the list of ING Direct products is their kids savings account.  Parents of young children have the option to get their kids excited about saving money by opening one of these accounts, and for three days only a cash bonus of $27 will be offered.  In order to qualify, certain criteria must be met.

• Open a Kids Savings Account November 25^th – 27^th
• Only available when you open a new account with at least one new Customer (either you or the kiddo)
• $27 bonus starts earning interest upon account opening, and is available for withdrawal after 30 days

ING Direct MONEY Account

Finally, the newest of all accounts offered by ING Direct; MONEY is designed for teenage account holders.  Parents have control over the limits and uses of their teen’s debit card and just like the ING Direct savings account, all money deposited earns interest.   In order to receive the $32 cash bonus, you must:

• Open MONEY November 25^th – 27^th and make 1 Card transaction (either signature, PIN-based or with PayPass^TM) using your MONEY Card within 30 days

I don’t know where ING Direct comes up with their quirky cash bonus amounts but I know I’ll finally be signing up for an Electric Orange checking account to take advantage of the $107 bonus.  Time to move away from my $6 a month Chase checking account fees and give these guys a try.  No promo code is needed to take advantage of any cash bonus; ING Direct will do all the work.

Checks are evil. I’m serious. In a world of electronic transactions, debit and credit cards, direct deposit, PayPal, and online payments, shouldn’t physical checks be a thing of the past?

Yet, I’m amazed at how many checks my wife and I go through. From charitable contributions to school lunches, we write about ten to 15 checks a month. Recently we ordered new checks online, and in the process saved a lot of money on our order. The trick to saving money with replacement checks is simple–don’t order from your bank.

It may seem odd to get checks from somewhere other than your bank. It’s as if your bank has some magical printing press, and the checks will only work if they come from the same financial institution that holds your money. But here’s a little secret–your bank doesn’t print your checks. When you order checks from your bank, they forward the order to a printer like Deluxe or Carousel Checks. They then mark up the cost of the checks to make a profit, even though the only thing your bank has done is to play the middleman.

I’ve found that my bank will charge me nearly double what I’ll pay if I order checks online. So the last box of checks my wife and I ordered came directly from Deluxe (although there are many other options).

Ordering checks online is really simple. All you need are four pieces of information (apart from the name and address you want on the check, of course):

Routing Number: The first piece of information you’ll need is your bank’s routing number. The routing number is a 9-digit number unique to your bank. Each bank in the United States has a routing number that is listed on your check and deposit slip. As you’ll see in the image below, the routing number generally appears on the bottom left of your checks and deposit slips.

If you are unsure of your routing number, call your bank and they will provide it to you.

Checking Account Number: The second thing you’ll need is your checking account number. Your account number is also located on your check and is directly to the right of the routing number. You can call your bank if you are uncertain of this number as well.

Check Number: Third, you will need to know the starting check number. If this is an existing account, you’ll want the check numbers to start where your last check left off (although this isn’t actually required). Keeping your checks sequentially numbered makes record keeping a lot easier. If it’s a new account, I like to start with check 1001. It makes the account look older, and there is no rule requiring you to start at 101.

Check Style: Finally, you’ll need to know whether you want regular or duplicate checks, and what style of check you want. Many of the online check printing companies offer hundreds of styles ranging from football themes to Winnie the Pooh. I stick with plain checks, but having worked at a grocery store as a kid, I can attest to the fact that people have very strong feelings about check design.

In addition to ordering checks online, there are various other banking products you can order online. Such products include check envelopes, check starter kits, continuous checks, and deposit tickets. Some of these items you may actually get for free from your bank, so double check before spending money. But if you have to spend money, it’s a sure bet that your bank is not the cheapest option.

With the revolt against bank fees in the news, I thought it was a good time to highlight some no fee online checking account options. The great thing about online banks is that not only are their checking accounts free, but many of them even pay interest. For those that pay interest, online banks can generally beat traditional financial institutions big or small with higher rates because of lower costs. Online banks don’t need to maintain an expensive network of branches, and they can pass those savings on to consumers in the form of higher interest rates and lower fees.

To give you an idea of what’s available, I’ve put together this list of free and low cost online checking accounts. I’ll be adding to the list as interesting offers become available. What I like about these options, however, are the diversity in what is offered. As you’ll see below, for example, PerkStreet doesn’t pay any interest, but offers a cash back debit card and $50 sign-up bonus. EverBank pays one of the highest yields available for a checking account. Its rate is so high, it competes with rates for savings accounts and CDs. And ING Direct has no fees, pays interest, and offers a sign-up bonus.

So here’s the list, and if you know of other free checking account options, be sure to leave a comment.

Online Checking Accounts

FNBO Direct – The top pick for free checking accounts goes to FNBO Direct. With its Online BillPay Account, you not only get a free account, but one that pays interest. The interest rate is currently 0.70% APY. The account comes with a free Visa debit card. And you can even transfer money with a cell phone or e-mail account.

ING Direct – Well known for its Orange accounts, ING Direct offers an online interest bearing checking account. While its yields aren’t as high as EverBank (ING currently pays 0.20% APY for accounts under $50,000), it comes with an ATM MasterCard debit card, free ATM use and free bill pay. Having used an Orange savings account for years, I can personally attest to how easy it is to navigate around the ING Direct website.

PerkStreet Financial – This online checking account gets high marks for innovation. PerkStreet offers a no fee checking account, including free checks. It takes only $25 to open an account, and after that, there are no minimum balance requirements. So long as you use your account, there are no monthly maintenance fees. PerkStreet offers a large network of surcharge-free ATMs, free online banking and bill pay, and customer service 24/7.

One of the most unique features PerkStreet offers is a debit card with up to 5% cash back. Cash back rewards are typically reserved for credit cards. The PerkStreet Financial Visa® Debit Card is the only one we are aware of that offers cash back. Here are the details of the cash back offer:

• You’ll get up to 5% cash back when you make non-PIN purchases in popular categories. Each month we’ll announce these categories at http://blog.perkstreet.com and via our Facebook and Twitter pages.
• 2% cash back on all other non-PIN purchases on days when your Current Account Balance is $5,000 or more.
• 1% cash back on all other non PIN purchases on days when your Current Account Balance is less than $5,000.

You can find more details about this offer in our PerkStreet Review.

EverBank – If you are looking for a checking account that pays interest, EverBank is the answer. The EverBank interest rate on it’s checking account can go as high as 0.66% for big balances but you can see a full table of interest rates below. These rates are higher than many savings or money market accounts. You can also check out our EverBank Review.

Balance	Interest Rate (APY)
$100,000+	0.76%
$50,000 - $99,999	0.71%
$25,000 - $49,999	0.61%
$10,000 - $24,999	0.56%
$9,999 or less	0.46%

EverBank’s interest rate also has another nice feature – the Yield Pledge guarantee. EverBank pledges that its checking account will yield within the top 5% of competitive accounts.

Ally Bank – Ally Bank has won award after award for low fees and customer service. With its checking account, there is no minimum balance required to open an account, no monthly maintenance fees, and free online banking and bill pay. And while some banks are charging to use their debit card, Ally’s debit MasterCard is still free. And there are no ATM fees at any ATM nationwide.

Note that all of the online checking accounts listed above are FDIC insured.

Saturday was ‘Bank Transfer Day.’ Spurred by the $5 debit card fee Bank of American planned to charge customers, a movement was born to get banking customers to switch from big banks to credit unions. Why they planned it on a Saturday when most credit unions are closed is anybody’s guess.

Today in the Washington Post, Ian Shapira writes about the young women supposedly behind the mass exodus from banks. Her name is Molly Katchpole, who is described as a “22-year-old underemployed college grad who ignited a nationwide movement against Bank of America. . . .” Katchpole penned a petition titled, Tell Bank of America: No $5 Debit Card Fees.” Now, I knew this petition and I were not going to get along right from the first few sentences: “When the recession first hit, we gave Bank of America billions of dollars in bailout money. Our reward is higher fees for the same services.”

Actually, our “reward” was $4,571,516,269. That was the profit the country made on our investment (we didn’t “give” B of A anything) into Bank of America as part of the bailout. To be specific, the government purchased preferred stock with warrants.

Now I can just envision the emails I’ll receive–”DR, why are you defending big banks? They must have paid you to write this crap!” As an aside, I can’t tell you how many people have accused me of being paid to write articles about big banks. Apparently, if you don’t join the “movement,” you must have been paid off. Nope. Full disclosure–I don’t bank with BofA, I don’t use its credit or debit cards. And I have absolutely no affiliation with the bank at all.

Here’s the deal. For some reason Bank of America’s $5 debit card fee struck a nerve in our country. In some ways it reminds me of the reaction to Netflix’s price hike. And I think it’s absolutely ridiculous. We pay $5 for a cup of coffee, $15 per ticket to go to the movies (not including snacks), and upwards of $100 or more per month for cable. But even think about a $5 monthly debit card fee, and all hell breaks loose.

On top of that, our representatives in Washington have proven totally ineffective. President Obama has shown a stunning lack of leadership on economic issues, pitting the “rich” against the rest of us rather than uniting the country to solve our financial problems. And both the Republicans and Democrats in the House and Senate are no better.

So what do we do? Start a movement over a $5 monthly fee. Really? That was the best we could come up with? That’s like a passenger on the Titanic complaining about the tea service. I don’t like fees of any kind. But if I were to create a list of the most ridiculous fees and costs many of us face every day, a $5 monthly debit card fee wouldn’t make the top 25. The funny thing is the movement worked. Bank of America announced it won’t be charging the $5 fee.

And that brings me to Bank Transfer Day. Sparked by the $5 fee, organizations like moveon.org are passing out the pitch forks and torches in an effort to get folks to switch to credit unions. Apparently, more than 650,000 have already switched, according to Martha C. White of Time’s MoneyLand blog. I suspect many will regret their move.

Credit unions can be a great banking option. Recently, I published an article about great credit unions based on input from readers of the Dough Roller Newsletter. And in college I kept my money with a credit union. But this could be a case of the grass is always greener on the other side.

Many credit unions have some significant limitations. Most have very few branches, so getting to the bank may prove difficult. Unlike a big bank with 24/7 customer service, credit unions can be impossible to reach during the evenings and weekends. And contrary to popular belief, credit unions do charge fees. In 2010 alone, for example, credit unions charged consumers $13 billion (yes, billion with a b) in fees.

I’m not switching. As I’ve said before, I bank at Citi. I’ve banked with Citi for 20 years. I don’t pay any fees for my checking account and get free ATM transactions at every 7-eleven. Why would I switch?

But more importantly, do what’s best for you. If switching to a credit union is the best option, do it. If staying with Bank of America is your best option, do it. And if moving to an online bank is the best way to meet your financial needs, go that route. But for goodness sake don’t make a switch because it happens to be “Bank Transfer Day.” And don’t believe that a credit union is your best option without carefully weighing the pros and cons.

In a previous post, I quoted a portion of an email I received from a reader about his credit union. Here’s the entire text of his email:

This is my response on the banking newsletter recently published. You requested feedback; here is my experiece with our local Credit Union. Recently they underwent a system upgrade and were closed for 4 days. We were unable to reach anyone or do online banking during this time. Now mind you, we were given fair warning, but money needs always arise at the worst time. When finally able to bank online again, I tried to access the transfer funds tab that had always been available since we set it up after joining to send money into my daughters account. Well, both of her account numbers had disappeared, and to make matters worse, I am out of the country and unable to call them directly due to phone unavailability and time difference. I sent a plea via email as this was a most urgent matter. What do they do, they change my password, making it impossible to even access my account. Oh, this whole ordeal began on Sunday and by today, Thursday, it still is not resolved. Sadly, this has not been the first issue with them either.

Since they are small, there are only a few offices. They are not easy to travel to, I could not get there and back on my lunch hour, so I have to go on Saturday morning. Once the day ends there is no way to contact anyone at the bank. Too bad if you have a problem – you will just have to wait until the next day to resolve it. For what it is worth, my experience with our local Credit Union has been terrible. As soon as I get back home I feel I can find a bank that gives me less headaches. The negative outweighs the positive by far with this institution.

My point isn’t to bash credit unions. Instead, I’m trying to bash the notion that credit unions are always better than big banks. They’re not. You have to do your homework and make the best choice for you.

And if you decide to make a change, check out how to Change Banks in 5 Easy Steps.

Photo Credit: alyceobvious

Bank of America has taken it on the chin the past few weeks after announcing it would charge a $5 monthly fee to all customers using a debit card. The sad reality is that Bank of America is not the first or the last bank to charge customers a debit card fee. And it seems to be getting harder and harder to find a no fee checking or savings account. Swooping in to take a share of the business Bank of America will lose is EverBank, which is currently offering a $60 cash bonus on new checking accounts.

If you compute the quick math, a $60 cash bonus is provided because that’s the amount consumers will lose each year by using their BOA debit cards.  In addition to the cash back bonus, EverBank offers a pretty solid interest rate (when compared to other banks) for keeping your money in their FreeNet checking account.  Current interest rates are as follows:

Balance	Interest Rate (APY)
$100,000+	0.76%
$50,000 - $99,999	0.71%
$25,000 - $49,999	0.61%
$10,000 - $24,999	0.56%
$9,999 or less	0.46%

In order to receive the $60 bonus from EverBank, you must abide by the following rules:

• Make an initial deposit of $1,500 before November 30th, 2011
• Have an average daily balance of at least $1,500 until the end of this year
• Make one direct deposit of at least $500 before January 31st 2012
• Keep the account open until February 29th, 2012

So what makes an EverBank checking account better than others you ask?  Well for starters, they won’t charge you a monthly maintenance fee, and if you keep a balance of at least $5,000, you won’t be charged for online bill pay either (otherwise $8.95 a month).  Perhaps the coolest feature this account has is that unlimited ATM fees are reimbursed for accounts over $5,000.  This means if you need cash and you use an ATM which charges a fee, EverBank will refund that fee no matter the cost.  Depending on how often you use an ATM, this could mean a savings of a few hundred dollars annually.

You may not be familiar with EverBank, but they’ve been one of the strongest online banks for the last five years. And they currently offer a wide variety of deposit products.  This current $60 bonus is scheduled to expire the last day of November.

With bank fees on the rise, many are looking to take their business to smaller financial institutions. One popular option are credit unions. A credit union is a cooperative financial institution owned by its members. As a result, these smaller institutions often offer banking services at lower costs and with better rates.

In the Daily Dough, our email newsletter that goes out each week day (click here to sign up!), I asked readers to tell me about their experience with credit unions. The result was overwhelming. We got a lot of positive recommendations, which I’ll share below.

Finding a credit union is a two-step process. First, you have to find a credit union near you that you can join. Credit Unions have different membership requirements, often based on your job, military service, or membership in another organization.

Once you find options that you can join, you then need to evaluate fees, banking services, interest rates, and the like. You can’t assume that all credit unions are good deals. In fact, one reader emailed me to complain about his credit union:

Since they are small, there are only a few offices. They are not easy to travel to, I could not get there and back on my lunch hour, so I have to go on Saturday morning. Once the day ends there is no way to contact anyone at the bank. Too bad if you have a problem – you will just have to wait until the next day to resolve it. For what it is worth, my experience with our local Credit Union has been terrible. As soon as I get back home I feel I can find a bank that gives me less headaches. The negative outweighs the positive by far with this institution.

Furthermore, credit unions do charge fees. In fact, in 2010 credit unions earned $13 billion in fees, and fee income as a percentage of total revenue has doubled since 2000. Why? With lower interest rates, financial institutions are making less and less on rate spreads.

The key is to do your homework. So let’s look at a few tools that can help you do just that.

How to Find a Credit Union

There are several websites that focus exclusively on credit unions. These sites can make finding a CU much easier and faster.

FindACreditUnions.com: This site has a very easy to use search function. Simply put in your address, and it returns a list of credit unions in your area. I was surprised to see about 30 credit unions within 5 miles of my home.

The search results usually indicate membership requirements. They also provide links to a review of the credit union and a link that takes you directly to the financial institution’s website.

America’s Credit Unions: This site also has a search function, but with a twist. In addition to entering your zip code to find locations near you, you can also enter an organization your associated with. This allows you to search for credit unions based on local governments, businesses, charitable organizations, and so on. I entered our school district and found a credit union we could join based on where our kids attend school.

ASmarterChoice.org: In addition to a database of credit unions, this site also offers some great resources and news about the CU industry.

Credit Unions Online: The last resource in our list offers a directory of credit unions, as well as calculators and news about the industry.

Reader Recommended Credit Unions

In response to a newsletter last week, several readers replied to share with us their favorite credit unions:

Eastern New York Federal Credit Union (Napanoch, New York)–ENY offers an excellent rewards checking account:

• ATM fee refunds, up to $15 each month, on any ATM you use nationwide
• 2.5% APY* returns on your balances of up to $15,000
• 0.25% APY* paid on balances over $15,000
• Free checking no matter what, and a base rate of 0.10% APY* even if you don’t meet the requirements in a given month. No monthly service charges, no per-check fees ever.

Mid-Hudson Valley Federal Credit Union (Kingston, NY)–The reader who mentioned Mid-Hudson Valley expressed some concern with its fees. It does offer a free checking account, but it’s not a rewards account.

Security Service Federal Credit Union (Texas, Colorado, and Utah)–Offers free checking and a 7.9% fixed rate balance transfer for life. One thing I’ve noticed is that credit unions generally don’t have the best balance transfer offers you can find. But if you plan to take years to pay off your credit card debt, a fixed rate for life offer can be a reasonable approach.

Wright Patt Credit Union (Dayton, OH)–Wright–Patt offers what it calls “totally fair checking,” which is basically a free checking account. It also offers a credit card with rates as low as 6.25%. One thing that was a bit disappointing was a low 0.15% on savings accounts.
The best online banks offer about 1%.

First Bank of Greenwich and Greenwich Bank & Trust (Greenwich, CT)–Finally, one reader recommended these two local banks. While not credit unions, I’ve included them in the list as options to consider.

If you know of other credit unions you think should be added to the list, please leave a comment below.

A few years ago, a small outfit named PerkStreet launched a free online checking account that offers amazing debit card rewards.  Rather than offer an interest rate, PerkStreet decided to provide cash back on all debit card purchases, sometimes in the amount of 5%.  The amount of cash back that you can earn as an account holder depends on the type of purchase you make and how much money you have in your account to start the day.  For the month of February 2012, PerkStreet will be providing 5% cash back on all purchases made at the following merchants:

• Tax Preparation, Accounting, Auditing, and Bookkeeping:
• H&R Block®
• Liberty Tax Service®
• Tax Slayer®
• Tax Hawk®
• TurboTax®
• Tax Club®
• Kohl’s.com®
• Dick’s Sporting Goods®

In addition to great 5% cash back opportunities, all PerkStreet checking account holders will receive 2% cash back on ALL purchases as long as the day’s starting balance is $5,000 or more.  If the balance is under, a respectable 1% cash back is earned.  To my knowledge, this is the only checking account available today that offers such a high cash back percentage and when compared to credit cards, it’s the only card available to offer 2% cash back on all purchases.

Even though I’m a big fan of credit cards, I cannot ignore the amazing savings PerkStreet offers.  And, with interest rates as low as they are, using money to save money (rather than to make money) may be the way to go right now.  Visit the official PerkStreet.com website for more information or to read up on how you can save up to 5% cash back on select purchases every month.

When in rains, it pours. Last week Bank of America announced a $5 fee to use its debit card. This week the Occupy Wall Street protesters are fanning out across the country, looking to unseat the bonus marchers in the history books. And now my own bank, Citi, has gone and raised fees on its checking accounts.

Beginning in December, Citibank’s mid-level checking account will cost $20 a month. And to avoid this fee, you’ll need to keep a minimum balance of $15,000 in your combined Citi accounts. Before this increase, the minimum balance to avoid the fee was just $6,000.

Citi will also assess a $15 monthly fee on its EZ checking account unless you maintain a minimum balance of $6,000. And Citi is apparently phasing out its EZ checking product, which was the first checking account I got from Citi nearly 20 years ago. And all of these fee increases are on top of a $2 fee hike (from $8 to $10) on its basic checking package announced last month. If you can meet the minimum balance requirements, however, Citi does offer up to a $400 gift card bonus on new checking accounts.

If you miss the days of no fee checking, don’t dispair. There are still plenty of banks that offer free checking accounts. Three of my favorite options are PerkStreet, Ally Bank, and ING Direct.

All three banks offer no fee checking accounts. PerkStreet comes with cash back rewards of up to 2%. And Ally Bank offers a checking account with absolutely no fees, not even ATM fees. So at least for now, we have some options.

Here is what others are saying about the onslaught of new fees:

Larger Checking Account Fees at Citi, But Bonuses Continue (via Deposit Accounts)

Citibank Jacks Up Monthly Fees On Checking Accounts (via the Consumerist)

Photo Credit: Nearest Neighbor