Lets be honest, many of us do not read through all of the fine print before we sign a contract. It just doesn’t seem logical. There are pages and pages of fine print writing that they expect us to read. BUT, if you were to read all that fine print…you may be surprised…

Five Bizarre Entries in Banking Fine Print
By: Jack Karp at BankingMyWay.com

Consumer-banking legalese is usually about as boring as you can get.

But lawyers occasionally throw in a catchy phrase, seemingly to relieve the monotony.

About 30 pages deep into an account rules and regulations contract, any consumer who has had the stamina to read that far is asked to “Please Read This Provision Carefully.” Or a promotion will state the obvious: “Repayment terms and payment amounts … may change, if, for example: we change your APR.”

Repayment terms change if they are changed? Thanks for the heads-up.

Here are five of the wackiest clauses in banking:

1. Wisconsinites Need to Shop Responsibly.

“Notice to Married Wisconsin Residents: all obligations on this account will be incurred in the interest of your marriage or family,” says the Chase Freedom Visa Signature Card’s Pricing & Terms provision.

So, Wisconsin cardholders: You are legally bound to behave responsibly when racking up debt.

Where does that leave the rest of the country?

2. Relax guys. Your interest rate won’t vary based on some index. It’ll be changed at the whim of the guy who’s collecting payments.

Even better, “this is not a variable rate tied to an index, such as the Prime Rate,” says Bank of America’s application for a $30,000 personal loan. “It’s a comfort to know your rate won’t automatically fluctuate every time the index changes.”

A predictable interest rate? I’m all for it. But wait, there’s more…

“By ‘non-variable rates’ we mean that the APR will not automatically vary with an index, such as the prime rate. We reserve the rate to change your APR, fees, or other credit terms at our discretion.”

A comfort? That the interest rate will no longer be based on the bank’s cost of borrowing, but rather, on whether it would like to get more money out of the deal?

That’s a favor I can do without.

3. We really want you to know what’s written in the second column of page 32 of your Account Rules and Regulations. Really. It says so right there.

If you — for some reason — happen to have suffered through 32 pages of account descriptions and legalese in Chase’s “Account Rules and Regulations” you’ll be rewarded.

In the second paragraph of the second column (no “Beware of the Leopard” sign, though) consumers are advised — in all caps — to “PLEASE READ THIS PROVISION CAREFULLY.”

The buried provision advices clients that they’ve given up their first amendment right to a day in court: Instead they must go through arbitration.

Think Judge Judy with closed proceedings. The arbitration administrators are dependent on the bank for business, depending on the administrator they may or may not be bound to follow the law and decisions are subject to minimal judicial oversight.

You can guess which party wins the vast majority of the time.

Plus the arbitration administrators forbid class action suits, which means banks have carte blanche to nickel and dime you without fear of legal reprisal.

But that’s not all: In previous clauses Chase also eschewed any responsibility for determining whether a court has any authority over your account before freezing your money. They have a freeze-first-let-you-work-it-out-with-the-unauthorized-entity-later policy. And you’re responsible for any costs the bank incurs in the process.

And if they make a mistake and accept a forged check, any problems you have as a result — even if you warned them of the risk beforehand — are your problem. You might get the money put back into your account, but you can’t go after Chase for resulting damages.

All of these clauses are standard banking practice. Perhaps the only thing that makes Chase unique is that the three provisions all occur in a cluster on page 32.

Continue reading the other 2 crazy clauses at BankingMyWay.com…

Photo: Kevin Rosseel

Other Fun Things to Check Out:
98 Years…All The Wiser
Demetri Martin - Credit Card Tips
Isn’t it Their Turn to Pick Up the Check?

Most us tend to laugh at the idea of keeping significant cash at home. To do so seems to fall somewhere between acting like a Granny or wilderness-living, manifesto-writing weirdo. Still, this article presents some compelling reasons why keeping cash at home isn’t such a bad idea after all.
—

Why You Should Stash Cash at Home
By Jeffrey Strain | MainStreet.com

When the unexpected happens, it’s always good to be prepared with some extra cash.

Many people no longer feel it’s necessary to keep any significant amount of cash at home or in their wallet because it’s just as easy to use credit cards at most establishments. If cash is needed, there are ATMs around virtually every corner.

Even though it can be quite easy to access money in these ways most of the time, there are still compelling reasons to store some extra cash under your mattress.

Here’s a list of some events that would make you glad you had a bit of money at home.

Bank Closures

The collapse of California Indymac Bank on Friday left many people unable to get into branches or perform online or phone banking transactions over the weekend, although ATM withdrawals were working.

The problem with banks shutting down and being taken over by the Federal Deposit Insurance Corporation isn’t likely to stop there. This was already the fifth bank to fail this year and as of the end of March, the FDIC has been closely watching an additional 90 banking institutions on its “problem list.”

The FDIC guarantees traditional bank accounts up to $100,000 per person and IRAs up to $250,000.

If a bank fails, your money is insured if your account stays under these limits. Even when banks close, you should eventually have all the money in your bank account returned to you, but there may be a few days when you won’t be able to access the money that is in the bank.

Having a cash fund at home can be of a great help for the short period when you may not have access to your bank money.

Natural Disasters

Large-scale natural disasters such as hurricanes, earthquakes and tidal waves can mean that there is widespread damage to the power infrastructure.

If this happens, all the retailer machines that accept credit cards will be down as well as ATM machines to get money out. People selling supplies will rarely take credit cards during these times and having a stash of money can make it a lot easier to find someone willing to help you escape the predicament. During a natural disaster, cash is often king and another reason you should always have some at home.

Stolen or Lost Wallet

If you wallet gets lost or stolen it will take time for your credit cards and bank cards to be reissued. If it happens to be during nonbanking hours, you may not have any way to gain access to money.

Credit Card Troubles

With more and more people defaulting on their credit card debts and banks already reeling from the mortgage meltdown, banks have been reigning in the limits that they offer on credit cards. While not likely, there also can be instances when your credit cards get frozen.

If you count exclusively on your credit card for purchasing, any trouble can quickly find you without a money source until the issues are worked out. Having money at home can help you get by while these issues are being resolved.

Frozen Bank Accounts

Similar to the troubles with credit cards, bank accounts can get frozen with little warning and may not even be your fault. If your debit card gets stolen, your entire account can be drained and it can takes days, if not weeks, for the issues to get resolved during which you won’t have access to your money in the bank.

ATM Reliance

Another benefit of having cash at home is that you aren’t reliant on ATMs when you need some extra cash. ATM fees can cost several dollars for each withdrawal if the ATM is not part of your bank network.

Add in the rising cost of driving your car to the ATM to get your money, and the cost of not having money at home can quickly add up. While some may argue that having cash at home means you’re not earning interest on it, the savings from avoiding ATM fees and travel costs will end up being more for most people. If you have to pay an ATM fee more than a couple of times, you’ll wipe out any interest that the money in the bank would have earned.

When you decide to keep money at home, it’s important to remember to keep it in smaller-denomination bills which aren’t larger than a $20.

When disasters strike, there usually isn’t an option to receive change for large denomination bills. An emergency cash fund of several hundred dollars at a minimum is advisable.

It takes only one incident when you wish you had cash on hand to convince you to keep some extra money hidden in your house. If that hasn’t happened to you yet, feel fortunate — but be prepared on the chance that it does.

Related:

* What You Need to Know About Medicare
* GM Cuts Retiree Health Care; Whats Next?
* 5 Ways To Score Affordable Insurance When Work Won’t Pay

An acquaintance of mine just lost her job at IndyMac. This is a timely article that provides tips for safeguarding your bank accounts. From our partners at MainStreet.com

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IndyMac Lesson: Check for FDIC Insurance
By Terry Savage

Are your bank deposits insured?

If your account is under the $100,000 FDIC insurance limit, even headlines like the failure of IndyMac Bank, one of the largest bank failures in history, shouldn’t make you lose any sleep. But if your deposits are above the $100,000-per-person insured limit, this latest bank failure should be a wake-up call.

America has $6.881 trillion dollars in deposit institutions, but only $4.241 trillion of those deposits are insured, according to the latest FDIC year-end statement. That leaves a staggering gap of more than $2.6 trillion sitting in uninsured bank accounts.

In the IndyMac takeover, it has been estimated that around $1 billion of deposits in the bank were uninsured, impacting 10,000 depositors.

Some of those depositors may have been lured to jumbo CDs because of above-market rates being offered by the struggling bank. That’s a reminder of the old saying: “I’m not so concerned about the return on my money as I am about the return of my money!”

How FDIC Insurance Works

Now is the time to examine your bank accounts to make sure that you remain under the insurance limits, especially if you have multiple accounts in one bank. Here’s how the insurance works, using excerpts from the FDIC Web site, where you can read the details.

Single Accounts: These are deposit accounts owned by one person and titled in that person’s name only. All of your single accounts at the same insured bank are added together and the total is insured up to $100,000. For example, if you have a checking account and a CD at the same insured bank, and both accounts are in your name only, the two accounts are added together and the total is insured up to $100,000.

Note: this category does not include retirement accounts, such as IRAs and Keogh accounts. Those accounts have a separate $250,000 insurance limit — and that limit is based on the total of all retirement accounts for that person added together. (You cannot increase that insurance amount by adding different beneficiaries for the retirement accounts.)

Joint Accounts: These are deposit accounts owned by two or more people. If both owners have equal rights to withdraw money from a joint account, each person’s shares of all joint accounts at the same insured bank are added together, and the total is insured up to $100,000.

If a couple has a joint checking account and a joint savings account at the same insured bank, each co-owner’s shares of the two accounts are added together and insured up to $100,000, providing up to $200,000 in coverage for the couple’s joint accounts.

Under FDIC rules, each person’s share of each joint account is considered equal unless otherwise stated in the bank’s records.

Revocable Living Trusts: These are formal revocable trusts created for estate planning purposes. The owner of a living trust controls the deposits in the trust during his or her lifetime.

Deposit insurance coverage for revocable trust accounts is based on each owner’s trust relationship with each qualifying beneficiary. While the trust owner is the insured party, coverage is provided for the interests of each beneficiary in the account. The FDIC insures the interests of each beneficiary up to $100,000 for each owner, subject to certain restrictions on how the account is titled and who is named as beneficiary.

Coverage is provided for the interest of each qualifying beneficiary named by each owner. Additional coverage is not provided to the owners for naming themselves as owners.

Note: There are complex exceptions to this rule for certain trusts, so if you are planning to keep large amounts on deposit for a trust, you should speak with a bank officer to confirm your deposit insurance.

What Should You Do Now?

1.Make Sure Your Bank Accounts are Insured Deposits!
Banks offer many types of investments these days, and some of those look like insured deposits, but may not be. Now is the time to make sure that products purchased inside your bank are actually insured deposit accounts. Ask that question directly, and ask your banker to show you the language of your account agreement that confirms the deposit insurance.

2.Check Your Insurance Limits
If you have amounts above $100,000 in your bank, you may want to move money by wire transfer to another insured deposit institution. That could mean having the interest earned on your jumbo CD sent to you each month, instead of accruing to your account. Don’t forget that balances in your checking account will be added to your other deposit accounts.

3.Use Alternative, Safe Investments
You can purchase Treasury bills, the world’s safest and most liquid investments, directly from the government. The minimum investment is now only $100, but you can purchase much larger amounts, in effect getting the government’s IOU for money that is far above the deposit insurance limits.

The process of buying Treasuries online is simple, and transactions are done by direct debit from your bank account. Interest is automatically paid out to your bank account. For larger investments, you can stagger maturity dates. Plan to hold those securities to maturity — typically 13 or 26 weeks — before getting access to your money by having it deposited to your bank account.

Bottom Line: You can sleep well with “money in the bank,” but only if you know the FDIC-insurance status of those funds.

If you’ve been smart or lucky enough to accumulate savings above the insured limits, you should take the time to evaluate your banking situation and take appropriate steps to give your money maximum safety.

Related:
* Mortgage Rates Still Far Below Year- Ago Levels
* Housing Bubble’s Pop Could Doom Boomers
* Where To Find The Best Health Info Online

A few weeks ago I received an e-mail from a close family friend in England. The subject read…“A seniors revenge!…Make sure you read this!” Obviously I was intrigued but then again, thought maybe it was just a forward. Either way this e-mail was pretty fun! Still not sure or not if it is true…but check it out…

A 98 year old woman in the UK wrote this to her bank. The bank manager thought it amusing enough to have it published in The Times.

Dear Sir,

I am writing to thank you for bouncing my cheque with which I endeavoured to pay my plumber last month. By my calculations, three ‘nanoseconds’ must have elapsed between his presenting the cheque and the arrival in my account of the funds needed to honor it. I refer, of course, to the automatic monthly deposit of my Pension, an arrangement, which, I admit, has been in place for only thirty eight years. You are to be commended for seizing that brief window of opportunity, and also for debiting my account £30 by way of penalty for the inconvenience caused to your bank.

My thankfulness springs from the manner in which this incident has caused me to re-think my errant financial ways. I noticed that whereas I personally attend to your telephone calls and letters, when I try to contact you, I am confronted by the impersonal, overcharging, pre-recorded, faceless entity which your bank has become. From now on, I, like you, choose only to deal with a flesh-and-blood person.

My mortgage and loan payments will therefore and hereafter no longer be automatic, but will arrive at your bank by cheque, addressed personally and confidentially to an employee at your bank whom you must nominate. Be aware that it is an offence under the Postal Act for any other person to open such envelope. Please find attached an Application Contact Status which I require your chosen employee to complete. I am sorry it runs to eight pages, but in order that I know as much about him or her as your bank knows about me, there is no alternative. Please note that all copies of his or her medical history must be countersigned by a Solicitor, and the mandatory details of his/her financial situation (income, debts, assets and liabilities) must be accompanied by documented proof.

In due course, I will issue your employee with a PIN number which he/she must quote in dealings with me. I regret that it cannot be shorter than 28 digits but, again, I have modeled it on the number of button presses required of me to access my account balance on your phone bank service. As they say, imitation is the sincerest form of flattery.

Let me level the playing field even further. When you call me, press buttons as follows:

1 - To make an appointment to see me.
2 - To query a missing payment.
3 - To transfer the call to my living room in case I am there.
4 - To transfer the call to my bedroom in case I am sleeping.
5 - To transfer the call to my toilet in case I am attending to nature.
6 - To transfer the call to my mobile phone if I am not at home.
7 - To leave a message on my computer (A password to access my computer is required. A password will be communicated to you at a later date to the Authorized Contact).
8 - To return to the main menu and listen to options 1 through 8.
9 - To make a general complaint or inquiry, the contact will then be put on hold, pending the attention of my automated answering service. While this may, on occasion, involve a lengthy wait, uplifting music will play for the duration of the call.

Regrettably, but again following your example, I must also levy an establishment fee to cover the setting up of this new arrangement.

May I wish you a happy, if ever so slightly less prosperous, New Year.

Your Humble Client

Again I’m not sure if this is true, but I feel as though all of us would love to do this every once and a while when our banks drive us crazy!

Photo: Mike - England

Can you Zagat your financial life?

The New York Times writer and editor Ron Lieber proposes a weekly review of financial service products. Think of it like a Zagat review of your favorite restaurant or a Times review of the latest film. Click here to read his great article, “Five Basics for Building a Solid Financial Future”.

Psst — and here’s another little something you can use. Geezeo is compiling user reviews on every financial product and service. Make sure you rank your financial products and services by logging into your Dashboard. Click on any of your accounts and tell us what you think!

Is there any alternative to Quicken? Quicken Online does just about everything Geezeo does with one key exception. Quicken charges you money to manage your money!

Why choose Geezeo, the Quicken Online alternative?

Well, for starters we share most of the features Quicken Online offers, but without fees:

A dashboard where you can see all your financial data from a number of different banking institutions.
Budgeting tools to effortlessly see where your money goes
Mobile phone TXT/SMS messaging to track your accounts using your cell phone
Like Quicken we’ve got robust and formidable security and privacy guards. In fact, we use CashEdge, the same security used by top financial institutions worldwide.

But wait — there are more reasons we’re the Quicken alternative.

Here at Geezeo we also have a bunch of cool stuff that Quicken doesn’t:

Money Confessions… where you can take a peek at how others handle their money
Groups… so you can find and connect with other people who share your interests or background. Your money is always private and secure but you can personalize a Geezeo profile to interact with others (here’s an example of my Geezeo profile).
Goals… so you can track your financial goals and be held “accountable” in a supportive environment
Peer Reviews…so you can voice your opinion on every financial product you use
Facebook integration… so you can share your financial and philanthropic goals with others
Or write our resident cranky expert, D.Expert, for personalized Dear Abby-like advice on your specific financial situation (if you’re brave enough!)
Don’t forget to check out the Geezeo buzz, too!

Finally, you’ve also got instant access to our entire team, including the co-founders! You have questions or suggestions? Hit us! (We’re guessing Quicken isn’t too quick to talk directly to you).

Is there a Quicken alternative? Yes — you’ve found it with Geezeo!

Bank of America is my basic bank account for savings and checking. But I realized, that every month in my checking account I was getting nothing on interest. If I was lucky, I got over a dollar in interest a month…I figured that it just wasn’t worth it. I still have money in this account just in case I need money right away, but I also opened and ING Direct Savings account.

This account has worked out really well for me…at first it was a little bit strange that all of my money was online and there was no physical building to go to, but I got used to that. Although the interest rate has gone down from 4.5% to 4.2% it is still great to be bringing in money every month. Also, this has helped me to have an incentive to save my money! I put my money in this account and try to “forget” that I have it…that way I’m not depending on this money when I go out and it is out of my mind! Its great to get about $25 per month in interest…I mean $25 isn’t that much, but compared to the little $1 that I was getting before from my regular savings…its a jackpot!

Check out ING @ www.ingdirect.com — they have several accounts that you can open! I just stuck with the Orange Savings Account.

Credit Cards by Hannah Waters from the Boston University Geezeo Facebook group!

Being home at my house for the summer is interesting, I get at least 3 offers from credit cards every single day. When Im at school, I obviously dont see these…my mum just automatically rips them up!

But with all these credit card offers coming to students on a daily basis, its no wonder that people get into trouble and a huge amount of debt!

Dont fall into this trap. I understand that sometimes big purchases (i.e. spring break, furniture, books, etc.) need to be purchased, and so having a credit card for those reasons is really beneficial. But why swamp yourself with 6 or so credit cards!?

Make sure you can pay off whatever money you are putting on the card within the month. Otherwise you’re just digging yourself into a never-ending hole.

Stick to one credit card…its that simple! You dont need to be paying several bills every month, that will never work out. Just dont fall into the trap of signing up for a new card everytime you get an offer, just throw the offer away instead.

53 Billion dollars. That is how much US financial service firms are expecting to rake in in overdraft fees this year. Repeat that number - 53 Billion dollars!

Why? 80% of consumers purchase items with a debit card that is linked to a checking or savings account. Unfortunately very few of us actually balance a check book or account for debit transactions.

What can be done? We are proud to launch Geezeo mobile which aims to put an end to overdraft fees.

The biggest problem is we typically do not have access to our accounts when we need them most - when we are out on a shopping spree or out for a big night on the town. Being that we are all eternal optimists we will gingerly hand our debit or credit cards over to a cashier… wait anxiously… and if the cashier accepts it… Yahoo! - we feel we are free and clear. There MUST have been enough money in the account. Unfortunately, the next day comes in - and bam… overdraft fees… for 3 different charges… $100 in fees down the drain.

With our free service you can send a text message to your Geezeo account and check ALL your financial account balances -in real-time- before you buy. BAM! no more overdraft fees. Only buy what you can afford and only use the cards and accounts that have enough money to cover it.

Sounds simple, huh?