Your Money_ The Missing Manual Part 10

Posting items on Craigslist The final step in selling Stuff is to list it on www.Craigslist.org, a free cla.s.sified-ad site. Craigslist doesn't reach as many people as eBay because it's limited to your local area, but that means you don't have to deal with s.h.i.+pping. Also, Craigslist doesn't have any built-in protections; people can and do get scammed, so be careful. Despite these caveats, Craigslist is a great way to get cold, hard cash for your dusty old Stuff.

Though posting an ad on Craigslist is fairly straightforward, there are things you can do to increase your chances of success: - Write detailed descriptions. Provide all the info-like size, color, style, and so on-that buyers need to make a decision.

- Be honest. Don't try to fool anyone. If you say something is "like new" and a potential buyer shows up to discover it's well-worn, you won't make the sale-and you'll have a cranky customer on your hands.

- Post photos. You don't have to include photos in your ad, but you'll have better luck if you do. Even if you write well, you can't describe that old dining room table as well as a picture can show it.

- Ask a reasonable price. If you're not sure how much to ask, check Craigslist and eBay to see how much similar items fetch. And remember: No matter how much an item cost you, you won't get near what you paid for it.

- Be patient. You'll get lots of responses, but few people will follow through. Don't let it bother you-that's just how Craigslist works. Be grateful for the folks who do follow up.

- Stand firm. Don't let buyers talk you into alternate forms of payment. For example, if you're asking $250 for something, don't accept a trade for it instead. Folks who want to trade are sometimes trying to pull a fast one.

TipIf you're new to the site, check out Dayana Yochim's article on how to speak Craigslist: http://tinyurl.com/MFcraigslist.

Donating to Charity After you've sold your expensive items on eBay, held a yard sale, and sold things on Craigslist, you'll still have Stuff left over. Fortunately, there are better ways to get rid of it than throwing it in the trash.

Try giving your Stuff to charity: Donate it to a local church or school, or take it to a thrift shop. And ask your friends and coworkers if they know of any specialized charities. For example, your town may have an organization like Free Geek (www.freegeek.org), a Portland-based nonprofit that accepts computers and refurbishes them for local schools and charities.

If you can't find a charity that wants your Stuff, check out Freecycle (www.freecycle.org), a gra.s.sroots nonprofit made up of thousands of people who give and get items for free. Their goal is to reduce waste by re-using items that others no longer want or need. Best of all, members.h.i.+p is free.

TipAny time you make a donation, keep a detailed record of what you donated where. If you itemize enough deductions on your tax return, you can pay less to Uncle Sam.

Earning Extra Cash in Your Spare Time Maybe you don't have a productive hobby or an attic full of Stuff to sell, but that doesn't mean you can't make a little money on the side. Here are a handful of ways to add to your cash flow: Research studies You can earn quick cash by partic.i.p.ating in medical research and marketing studies. I once earned $120 for spending an hour inside an MRI scanner while answering questions about money. Other folks have earned $150 for giving opinions on food packaging, $50 to record 40 minutes of audio for a speech-recognition program-and even $35 for watching p.o.r.n!

Colleges and companies are always looking for people to join their experiments and focus groups. To find studies in your area, check Craigslist.org's "miscellaneous jobs" section or scope out college newspapers and bulletin boards. Here's a short video from MSN Money that describes one study: http://tinyurl.com/MSNmoneystudies.

Tutoring Are you good at math? A piano prodigy? A computer whiz? Consider offering your services as a private tutor. For more info, check out http://tinyurl.com/GRStutoring and and http://tinyurl.com/st-tutor.

Mystery shopping Market-research companies use mystery shoppers to gather info on products and services. These people get paid a nominal fee to pose as regular customers, and then report on their experiences. Mystery shopping won't replace your day job, but you can have a good time while earning a bit of extra money. Here are sources for more info: - Be sure to read the FTC's consumer alert on mystery shopping: http://tinyurl.com/FTCmystery-shop. (Summary: Watch out for scams; you don't have to pay to become a mystery shopper.) - For the lowdown on mystery shoppers and how to become one, visit the Mystery Shopping Providers a.s.sociation at www.mysteryshop.org.

- Here's a first-hand account of life as a mystery shopper: http://tinyurl.com/freedmanMS. (The box below has more about the author, Donna Freedman.) - One popular hangout for mystery shoppers is www.volition.com/mystery.html.

Your Money And Your Life: Making Ends Meet with Odd JobsDonna Freedman has a history of odd jobs. She's found creative ways to make money since she was young, and at 52 she still draws income from a variety of sources. Since moving to Seattle in 2004, she's babysat, dogsat, partic.i.p.ated in medical research studies, mystery-shopped, done light housework, run an Internet message board, and been an apartment manager."Simply put, I needed the money," Donna says. "I was at that point a freelance writer and, starting in September 2005, a full-time student. Neither of those gigs guarantees a lot of income, if you know what I mean. Any extra $10 or $20 I could pick up was a tremendous help."Donna's most memorable gig was earning $35 for watching a short p.o.r.n film in a study on female s.e.xual response. The biggest boost to her budget has been her apartment management job, which for a long time meant she didn't have to pay rent. She now pays some rent to the new owners, but it's less than other tenants pay-plus she gets a monthly salary and an hourly wage for doing ch.o.r.es around the complex."I've scaled back on the odd-jobbery since getting a regular writing gig at MSN Money, but I haven't given it up entirely," Donna says. Since resolving to walk every day for exercise, for example, she's thought about doing a stint as a dog-walker. "I also plan to pick up more mystery-shopping gigs when I graduate."You can read more about Donna's adventures in her "Living with Less" column at MSN Money: http://tinyurl.com/DFreedman.

Renting out a spare room If you have s.p.a.ce in your bas.e.m.e.nt or garage, consider renting it out. If you choose your tenants carefully, this can be a win-win situation: You give them a cheap, safe place to live and you make a bit of extra money. (Plus it may help with your tax bill!) But before you do this, be sure to check your local laws and homeowners insurance policy to make sure it's allowed. Here's a Get Rich Slowly article where readers shared their tips on renting spare rooms: http://tinyurl.com/GRSrental.

Unclaimed property The National a.s.sociation of Unclaimed Property Administrators is a nonprofit organization that a.s.sists in "reuniting owners with their property". The group sponsors the site www.missingmoney.com, which lets you search unclaimed property records from partic.i.p.ating states.

Common types of unclaimed property include bank accounts and safe deposit boxes; stocks, mutual funds, bonds, and dividends; uncashed checks and wages; insurance policies, certificates of deposit, and trust funds; and utility deposits and escrow accounts.

The Missing Money database includes 40 states and one Canadian province (Alberta). For other unclaimed property resources, check out the U.S. government's "Government May Owe You Money" page (http://tinyurl.com/GovtOwes) or contact your state's unclaimed property office.

Blogging Let's get one thing straight: Blogging won't make you rich. But if you have something to say that people want to hear, you can put $50 or $500 a month in your pocket. (And some lucky folks are able to make blogging a full-time gig.) Blogs don't have to be intimidating-my mother blogs. Sites like www.blogger.com and and www.wordpress.org make setting one up a breeze. Pick a topic you're pa.s.sionate about, start writing, and share the blog with folks you know. If you're able to build an audience-which might take a year or two-add a bit of tasteful advertising through Google Adsense ( make setting one up a breeze. Pick a topic you're pa.s.sionate about, start writing, and share the blog with folks you know. If you're able to build an audience-which might take a year or two-add a bit of tasteful advertising through Google Adsense (www.adsense.com) or Blogads (www.blogads.com) and you'll have some extra pocket money.

Other ideas None of those options sound appealing? Let your imagination run wild: Do yard work for the neighbors (just like when you were a kid). Collect cans and bottles for the deposit. Babysit or petsit. Haul stuff. (I once met a man who earned $250 a week using his van to haul stuff for people he met on Craigslist!) Get a paper route.

There are tons of ways to make extra money in your spare time. But in order to make them work, you've got to be willing to put in some effort. So instead of sitting around watching TV or playing World of Warcraft, get out there and make some money!

A Pep Talk After reading this chapter, some people will come up with all kinds of reasons they can't make more money. They'll think, "That's easy for you to say, but I can't because..." To be successful, you have to overcome this sort of negative thinking.

The truth is, there are no shortcuts. Despite some companies' promises, you won't get rich quickly stuffing envelopes or peddling vitamin pills. If you want to earn more, you have to put in time and effort.

Every aspect of personal finance has its naysayers (see Coping with Mistakes and Setbacks Coping with Mistakes and Setbacks). Some people believe that being frugal is the same as being cheap. Others think that building wealth means you're a greedy capitalist. Of these limiting beliefs, the most common is, "I can't make more money." Lots of folks think people with high-paying jobs have something they lack, or that those people are lucky. There's no question that luck and talent play a role, but by far the most important factor in career success is perseverance.

Henry Ford supposedly said, "Whether you believe you can or can't, you're probably right." If you don't think you can spend a year working 60-hour weeks to earn enough to pay off your debt, then you'll probably never reach that goal. But if you truly believe that you can make a go of it, you'll likely succeed.

So get out there and do the work-and stick with it when others won't.

Chapter7.Banking for Fun and Profit.

"A penny saved is a penny earned."-Benjamin Franklin Banking is the cornerstone of our financial lives, yet few people give it much thought. If you're like most folks, you'll shop around for a good deal on toilet paper, but you pick a bank simply because it's close to you, your parents banked there, or they're giving out free coffee mugs. But choosing the right bank and the right accounts can make your life easier and help you save (and possibly earn) some moolah.

In this chapter, you'll learn how to find a bank and accounts that match your lifestyle. You'll also get tips for reducing fees and making the most of your accounts.

Choosing a Bank Finding ways to increase your income can be exciting (see Chapter6 Chapter6). You can even have fun looking for ways to cut your everyday expenses (Chapter5), especially when you see the results in your bank account. But selecting the bank account itself? Boring, boring, boring. At least that's the conventional view. Actually, you can have fun banking.

Consider two things when choosing a financial inst.i.tution: the bank itself and the accounts it offers. Banks are tools for building positive cash flow, and bank accounts can help guide you toward your financial goals (some are better suited for the job than others). This section covers the different types of banks out there, and the next section (Finding Accounts That Meet Your Needs) explains the various kinds of accounts you can choose from.

Types of Banks People use the word "bank" to mean lots of different things, including commercial banks, retail banks, and investment banks (which are a different kind of bank entirely). When deciding where to open basic accounts like checking and savings, you only need to worry about three broad categories of banks: traditional banks, credit unions, and online banks. Keep reading to learn about each option.

Traditional banks When most people think of a bank, they imagine a huge company with hundreds (or thousands) of branches spread across the country. Because these large banks have locations everywhere, having an account with one is convenient. And big banks generally offer a wider variety of products and services than smaller banks: They're one-stop shopping centers for your financial needs. Big banks have their place, but you have other options.

Lots of small, local banks have only a handful of branches (sometimes only one branch). These inst.i.tutions don't offer the same convenience as the big boys, but they often make up for it in lower costs and better service. Small banks have other benefits, too. Many are active in their communities, and some are built on religious or political philosophies that appeal to certain customers. Community development banks, for example, are designed to serve residents and spur economic development in low- to moderate-income areas.

NoteFor more on community development banks, visit www.communityinvest.org, which lets you search for organizations that share your values.

If you travel a lot and need access to branches across the country, a big bank may be right for you. On the other hand, if you stick close to home and there's a local bank with great service and values similar to yours, it may be your best bet. But be sure to check out your other options, explained next.

Credit unions Unlike banks, credit unions are not-for-profit inst.i.tutions. Because of that, they usually have better interest rates and lower fees than traditional banks. According to the National Credit Union a.s.sociation (NCUA)-which is probably a bit biased-credit unions offer better rates on nearly every product, from credit cards to car loans to mortgages to savings accounts.

NoteDon't a.s.sume that a small bank or credit union will give you a less-polished experience than a bigger organization. When I switched to a local, four-branch credit union, I found it had better online features than the huge national bank I'd been using for years!

Another difference is that credit unions are member owned. In other words, if you have an account there, you're one of the owners. Members elect the board of directors, which sets interest rates and makes other important decisions.

Also, credit unions are more selective than banks-you can't just join any ol' one. Each credit union limits members.h.i.+p to a specific region, job, or a.s.sociation. For example, some are only for teachers and their families, and others limit members.h.i.+p to people living in specific counties. So make sure you can actually join your local credit union before getting your heart set on opening an account there. Use the Credit Union Locator (http://tinyurl.com/CU-locator) to find one near you.

TipYour money is safe in a credit union. It's insured by the NCUA in much the same way the FDIC insures bank deposits (see the box on Online banks Online banks).

Credit unions typically have strong ties to the communities they serve. They also tend to cooperate with each other instead of compete. In fact, many provide "shared branching," which means that if you bank at a credit union in Delaware, you may be able to make deposits, withdrawals, and loan payments at an unrelated credit union in Montana. It's as if they're all members of one gigantic banking network. (For more on shared branching, check out www.cuservicecenter.com.) If there's a credit union in your area that you qualify to join, it's definitely worth considering. Just be sure to check out the types of accounts (Finding Accounts That Meet Your Needs) and interest rates it offers.

Frequently Asked Question: How Safe Is My Money?You've probably heard the phrase "member FDIC" before, but what does that actually mean mean?During the Great Depression, the U.S. government created the Federal Deposit Insurance Corporation in response to all the bank failures that were happening. The FDIC's job is to watch banks to make sure they're treating customers well, and to insure customer deposits so that even if your bank goes belly up, your money is safe.The FDIC insures up to $250,000 per depositor depositor per bank, but you can have more than this insured at a single bank if you have accounts that fall into different categories of legal owners.h.i.+p. For example, you can have an individual account insured for $250,000 and a joint account (with your spouse, say) insured for that amount, too. For more info, talk to your bank or check out the FDIC's website, per bank, but you can have more than this insured at a single bank if you have accounts that fall into different categories of legal owners.h.i.+p. For example, you can have an individual account insured for $250,000 and a joint account (with your spouse, say) insured for that amount, too. For more info, talk to your bank or check out the FDIC's website, www.fdic.gov, which includes a deposit insurance estimator.Bear in mind that FDIC insurance covers only checking, savings, money market, and CD accounts (all of which you'll learn about later in this chapter). And note that the insurance limit is scheduled to drop to $100,000 per depositor on January 1, 2014.As long as you keep your money in an FDIC-insured bank, you should be fine. If you're worried about your bank's health, do a little research using tools like the BauerFinancial star ratings (http://tinyurl.com/BCstar) or BankRate's Safe & Sound ratings (http://tinyurl.com/BRsafe).

Online banks Online banks offer the same sorts of products and services as traditional banks. The big difference is that online banks don't have storefronts, so you can't walk in and talk to a teller. That means you have to make all your transactions online, by phone, or via snail mail. But for many people, these drawbacks aren't drawbacks at all-they're advantages.

In its July 2009 issue, the Consumer Reports Money Adviser stated, "Online banking, despite a rocky start, is becoming the rule rather than the exception." The newsletter cites research by Forrester a.s.sociates that predicts that 76% of American households with Internet access will bank online by 2011.

If you're considering an online bank, keep two things in mind: First, though many traditional banks (like Bank of America and Wells Fargo) have a growing online presence, they generally offer lower interest rates and have higher fees than online-only banks like ING Direct and HSBC Direct. And second, the biggest thing that holds people back from banking online is security concerns. But Consumer Reports Money Adviser claims that online banking may actually be safer than traditional banking because there's less of a paper trail and your transactions are digitally encrypted.

Here are some online banks to consider: - Ally Bank: www.ally.com or 1-877-247-2559 or 1-877-247-2559 - Capital One: www.capitalone.com or 1-866-871-7932 or 1-866-871-7932 - Citibank: www.citibank.com or 1-800-374-9700 or 1-800-374-9700 - EverBank: www.everbank.com or 1-888-882-3837 or 1-888-882-3837 - HSBC Direct: www.hsbcdirect.com or 1-888-404-4050 or 1-888-404-4050 - ING Direct: www.ingdirect.com or 1-800-ING-DIRECT or 1-800-ING-DIRECT For a more complete list, check out MoneyRates (www.money-rates.com) or BankRate (www.bankrate.com). At Get Rich Slowly, I've compiled a list of online banks that offer high interest rates and good security: http://tinyurl.com/GRSbanks.

It's easy to try an online bank-you're not stuck with the first bank you choose. Sign up for an account at one, give it a spin for a few weeks, and if it doesn't meet your needs, then move on to something else. Take the time to find a bank that works for you.

The Right Bank for You I opened my first bank account the day I started college. I had two options: a bank that offered free checking and a bank that was handing out Frisbees. I chose the Frisbee, as did many of my cla.s.smates. The bank knew college kids couldn't resist free toys.

My new checking account came with a $5 monthly service charge. I didn't think much about it; after all, my parents had always paid a monthly service charge. No big deal, right?

I paid that "no big deal" for more than 15 years, even after the bank upped the charge to $8 a month. I asked them to waive it a couple of times, but they wouldn't. Eventually I wised up and switched to a credit union that didn't charge a monthly fee-but not before I'd paid that first bank about $1,500 for the "privilege" of banking with them. And all because I wanted a "free" Frisbee.

I'm not the only sucker out there. Banks give away all sorts of stuff to bring in new customers: iPods, gift cards-you name it. But as I learned the hard way, you should never choose a bank just because it's giving something away. Instead, pick a bank based on things that matter, like: - Convenience. How convenient is the bank? What are its hours? Where are its branches? How easy is it to find an ATM?

- Fees. What sorts of fees does the bank charge? What's its policy on overdrafts? Does it offer free checking? Free online billpay? Free access to canceled checks?

- Service. How's the customer service? Ask your friends and family, and check for reviews online.

- Internet banking. Is the website easy to use? You may have to hunt around online to get info on this or go into a branch and ask someone to give you a demo.

- Rates. What kinds of interest rates does it offer on savings accounts and CDs? (If you'll soon be shopping for a mortgage or other loan, check those rates, too.) - Values. What about the intangibles? For example, many folks are willing to sacrifice a few percentage points or pay extra fees to put their money in a community development bank (Choosing a Bank). Make sure the bank's philosophy matches yours.

And remember: You're not stuck with a bank forever. Shop around. Don't stay with a bank simply because it's the one you've always had if other banks are offering better rates or lower fees. There's no reason to settle for c.r.a.ppy service at a c.r.a.ppy bank.

TipIf you serve (or have served) in the U.S. military, be sure to check out USAA (www.usaa.com), a sort of financial clearinghouse for veterans. USAA has excellent customer service and offers banking, insurance, and investment products at compet.i.tive rates.

After you've figured out what kind of bank would work best for you, there's one other important factor to consider: What kinds of accounts the inst.i.tution offers. The next few pages explain what to look for.

Finding Accounts That Meet Your Needs The other half of the banking equation is accounts. Even if you find what seems like the best bank in the world-one with convenient locations, long hours, and a wonderful website-if its account options don't meet your needs, you're better off somewhere else. This section gives you an overview of the most common offerings and explains the pros and cons of each.

Types of Accounts Picking a bank account is like choosing the right tool for a job: Sure, you can pound a nail into the wall with a screwdriver if that's all you have, but you'll get the work done faster and more precisely if you use a hammer. The same is true with money: Find the right account and you'll get better results. The next four sections cover common types of accounts so you can pick the best ones to help you reach your goals.

Checking accounts Most people use their checking accounts as the hubs of their financial lives. This is where they stash their paychecks and pay their bills. n.o.body expects much more than that from checking accounts. But believe it or not, under certain circ.u.mstances, checking accounts can actually offer better interest rates than savings accounts.

Many small community banks and credit unions offer rewards checking accounts, which they provide in partners.h.i.+p with a company called BancVue (www.bancvue.com). Different banks have different names for rewards checking accounts, but they all share similar features. These accounts offer high interest rates-if you meet certain requirements. You have to: - Get your monthly statement online-not via snail mail.

- Log into your account at least once a month.

- Make a certain number of debit-card purchases each month (usually around 12-and ATM withdrawals don't count).

- Make at least one electronic transaction per month, like an automatic payment to your electric company.

If you use your debit card often, a rewards checking account makes a lot of sense. The biggest catch is that the high interest rate only applies to a certain portion of the money in your account. (At some banks, this amount is $10,000; at others, it's $100,000.) Any money above that cap earns only a tiny return.

You can read more about these accounts at My Money Blog (http://tinyurl.com/MMBchecking), or check out the huge list of such accounts at http://tinyurl.com/HYchecking.

NoteBanks pay interest on many accounts, but they don't do it out of the kindness of their hearts. It's good business. The bank takes your money and lends it out to other folks at higher interest rates, or invests it to earn better returns. In exchange for using your money, the bank pays you interest-but much less than they expect to make themselves.

Savings accounts You use your checking account for day-to-day stuff, but your savings account helps you meet your long-term goals. It's also the best place to tuck your emergency fund (Establish an Emergency Fund). Because you'll eventually end up with a ton of money there, the number-one feature to look for in a savings account is a high interest rate.

A lot of folks have their checking and savings accounts at the same bank. But you're usually better off with your checking account at a local bank and your savings account at an online bank because: - Traditional banks generally offer a pittance on their savings accounts (my credit union's "high-yield" savings account is currently paying 0.10% interest). Online banks can offer higher rates because they tend to have lower operating costs.

- It's easy to connect your checking account to an online savings account, but it's slightly tougher to transfer money from an online account to your checking account (it usually takes a couple of days for the money to move from one back to the other). This is generally a good thing because it keeps you from spending the money on impulse-you can't simply pull your money from savings to checking and spend it that same day.

Online saving isn't your only option. Some traditional banks actually offer decent interest rates, so check rates in your neighborhood. When you do, don't forget to ask about unadvertised specials; they might offer great deals you won't know about otherwise.

Be sure to keep an eye on your savings account's interest rate. Rates fluctuate from time to time, and an account that once had a high rate may eventually offer next to nothing. It usually doesn't make sense to chase after higher rates every time your bank makes an adjustment, but you don't want to get stuck in an account paying 0.25% when others are paying 2.5%!

Money market accounts Money market accounts are basically souped-up savings accounts that sport higher interest rates and higher minimum balances. My credit union, for example, requires me to have at least $10,000 in my money market account, though not all banks have minimums this high. With some money market accounts, you can write a few checks every month, too.

Because money market accounts have higher minimum balances, banks have more leeway to use the funds in your account (see the Note on Savings accounts Savings accounts), so they're able to pay more interest. Other than that, there's not a lot of difference between money market accounts and regular savings accounts. Still, it's important to know the term because it's one you'll hear often.

Certificates of Deposit Certificates of Deposit (CDs) are time deposits: You give your money to a bank and promise not to touch it for a specific amount of time. A CD is basically a loan that you make to your bank, which can invest the money however it wants during period you agreed to. In general, the longer you let the bank keep your money, the higher the interest rate you get.

Unlike a savings account, once you put money into a CD, the interest rate doesn't change. If you open a 12-month CD at 3.50%, say, and then interest rates drop to 1.00% (as they did in 20082009), you still earn 3.50% over the whole year.

The catch is that CDs are less liquid than other accounts, meaning you can't move money in and out of them any ol' time without paying penalties. If you take your money out of a CD before it matures (that is, before the agreed upon amount of time), you'll be docked interest. In some cases, you may even lose part of your princ.i.p.al.

NoteUnlike savings accounts, CDs end-or mature-after a set period. What happens then depends on the arrangements you've made with the bank. Many CDs renew automatically, which may not be what you want. So make sure you know what will happen when yours mature.

Here's a screenshot showing info about an actual CD that I opened recently at ING Direct to set aside money for a trip to France and Italy: [image]Figure7-1.The Anatomy of a Certificate of Deposit This CD started out at $14,000, earns 1.75% interest, and has a term (lifespan) of 12 months. If I decide to redeem this CD early, I'll sacrifice 3 months' interest, regardless of whether I've already earned that interest. In other words, if I had taken my money out of the CD during the second month, the bank would have taken part of my princ.i.p.al because I'd have only earned 2 months' interest at that point.

When my CD matures on November 12, 2010, I'll have $14,244.99-almost $250 more than I started with, which is enough to pay for quite a few nice meals in Europe! That's not a huge return, but your goal with CDs isn't to get rich-it's to earn a decent return in a safe account, and CDs are super safe. This account is a great way for me to earn a little extra money for my trip without worrying about losing money in the stock market. (There's more about risk in Chapter12 Chapter12.) Choosing Accounts As you can see, certain accounts are better for certain situations, so you want to make sure you're using the right tool for each job. When you choose an account, ask yourself: - What do you need the account for? Long-term savings? Business? Personal? Everyday use?

- How much will you keep in the account? Remember that some accounts require minimum deposits to get the best interest rate. (To get the top rate with my credit union's money market account, I need to have $50,000 in the account.) - How liquid does the money need to be? If you need quick, easy access to your cash, choose accounts at a local, traditional bank. If you don't mind a small delay in getting to your dinero, an account with an online bank will work fine. And if you can let your money sit for months (or years) at a time, a CD might be your best option.

- Do you need easy access to the money? If you need frequent access to your account, make sure to open one with a bank that has ATMs all over the place. If you'd rather create a sort of barrier so it's tougher to spend your money, choose an account that isn't tied to an ATM card.

- How important is online access? Do you want to download your transactions to Quicken or Excel? Do you need online billpay? Some accounts (and banks) offer more advanced online features than others.

Your answers to these questions will direct your search: If you need constant access to your money, a CD isn't the best choice. If you intend to keep a high balance, look into a money market account. By putting in a little time and doing some research, you can pick the best accounts for your situation.

Making the Most of Your Accounts You'll have more fun banking-and earn more money-if you do more than just accept the accounts you get by default. When you open an account, find out everything about it; read the fine print to learn what you can and can't do. And remember that accounts aren't just places to stash money-use them to pursue your goals! Here are some easy ways to make the most of your accounts.

Finding the Best Rates If you're shopping for the best interest rates, check out online banks (Online banks). In general, they offer better rates than traditional banks and credit unions.

Many websites have tables listing current interest rates. I keep one at Get Rich Slowly (http://tinyurl.com/GRSrates), and you can find others at sites like MoneyRates (www.money-rates.com) and BankRate (www.bankrate.com).

Keeping Your Accounts Optimized If you use a traditional bank or a credit union, you should ask a teller once or twice a year if there are any improvements you could make to your accounts. Ask about: - Better interest rates. Is there a similar account that might give you a better return?