Five Bank Offers Everyone Should Try

We may not be having another Great Depression, but everyone seems to agree that we are in need of some financial help from the banks while working our way out of the mire. Banks and financial institutions are taking hits just as much as we are, although you would not know it from the slick promotions and public relations we see every day. Since recent changes in banking practices appear to have yielded nothing in the way of relief for those who still incur late fees, return check fees and fickle finance charges, here are five things banks appear to be doing right for their customers that all of us should be taking advantage of when possible.

1. Bonuses for opening a new account. If you have the extra funds and can adhere to the bare minimum requirements required of the bank such as length of time to hold the account, use of debit card for purchases and/or automatic deposits (not necessarily payroll), then you may want to ask what kind of incentive a bank is currently offering for new accounts. Unlike the old days when credit unions offered "friendship and a toaster", many financial institutions can now offer up to $100 or more in the way of a bonus to open the account - ING and Chase are just two such banks. The bonuss appear as "interest" on your taxes. If you did not receive this offer in the mail, just ask at the branch or look on line for special deals. Long-time customers with a personal account should be able to establish a business or other type of account with similar incentives. Minimum balances are only required with certain kinds of accounts. Do not trust any bank that will not allow you to withdraw your own money anytime or choose the account that is right for you.

2. Rewards Cards for applying for a line of credit. Banks are so eager to have new customers with cash, they may be willing to pay you for even asking about a credit card. When you go to the branch be sure to ask if the reward applies whether or not you are accepted and/or open the line of credit. You still get the reward which is usually in the form of a Visa Gift Card or deposit into your existing account.

3. Waiver of Fees. Banks can do whatever they choose to do and since times are tough for everyone, they are more apt to reverse a penalty fee for you if you ask. The key is knowing when and how to ask. Do not ask until you are ready and able to make a substantial payment into the account. Tell the customer service agent that you are less apt to make a bigger payment unless they DO reverse the fee, otherwise you may simply be able to afford the minimum due. Be honest but ask for the moon. If you have more than one fee, be ready to accept whatever they can reasonably reverse, for example the over credit limit fee that will drop anyway when the payment is made on time or within a day or two of the fee being incurred. If the customer service agent will not help, ask for their supervisor. This might give them incentive to 1) reconsider or 2) get someone who does have the authority to reverse what the CSR cannot.

4. Put a Block On the Account for Overages and Do Not Use Checks. Under the new law, you can opt to put a block on the bank allowing you to take out more money than you have in the account at the ATM or at point of purchase store. If you have a debit card, you do not need a check and if you set up an automatic bill pay it should be drawing the money after your pay-day date ask the bank to set up withdrawal of funds convenient to you personally, if possible. Remember that online bill pays take a few days to register. Ask the creditor or person you are paying what different options are available to pay and how quickly the money goes into their account. Banks are notorious for holding funds these days and you need to know that information. Many utilities and other agencies take Western Union, Money Gram or Wire Transfer, which may be quicker or a better option fee-wise than what the utility charges by way of electronic transfer.

5. Insurance. If your bank or credit card offers free Life Insurance or a Disability Credit-Life type of policy that is free of charge then by all means sign up. Some places let you increase that coverage for pennies on the dollar and this would most likely be charged in addition to the account (they pay for the coverage for you up front) or based by percentage upon what you currently owe on a credit card. If you pay off your balance each month, there is no charge. If your balance is low the cost is low. Coverage which states "replacement cost" for items you purchased using the card is also a good deal in addition to your home owner/rental insurance. The line of credit statement shows what items you have bought recently and what the exact replacement cost would be if God forbid your residence was robbed or caught on fire. This should be considered supplemental only to your current policies and avoid anyone who offers quirky auto, specific health (like cancer) or long-term care coverages which would be covered by Medicare or Medicaid anyway.

Banks and financial institutions can only help you if you ask about what services they offer and many times they can design their own program. For example, there is always wiggle room in the subjective finance charge area. Those on debt management plans are already getting the lowest rates available, why not the best customers? The best thing you can do is read the fine print and follow the rules they have laid out for the account. If there are too many rules, go to another bank with less restrictions who reverse ATM fees and do not charge for every little thing. I once had a bank that charged for calling the automated teller!. Perhaps you simply need to move into a different kind of account that pays cash-back, interest, personal service and who listen and care.