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7 Tips for Finding a New Bank

By WTOP Staff

If overdraft fees and ATM charges have become a routine part of your financial life or the place where you keep your cash just isn’t meeting your needs for other reasons, it might be time to look elsewhere. Take a step back and identify where things are falling apart. Your current institution may no longer be a fit. Here are seven tips to consider when you’re making a move:

1. Think like Peter Brady.

There was an episode from the classic 1970s show when all of the kids in the Brady family were recording a song and Peter Brady’s voice started to crack. The song they sang was called, “When it’s time to change you have to rearrange.” A fitting title and theme for this episode where his voice starts to change due to puberty. That same advice the song title suggests bodes well for where you put your money. You may have to see if you need to rearrange where you keep it. Look into sites where you can compare your options such as Bankrate.com or GoBankingRates.com.

2. Make a beeline to streamline.

When it comes to banking, financial writer Kate Horell of KateHorrell.com believes simplicity is key. She chooses convenience and streamlining over getting the absolute best deal. “One $30 overdraft fee because you got confused can easily wipe out the extra interest from keeping your savings in a higher interest account,” she says. She points out that keeping your money all in one well-chosen institution can be more valuable than chasing pennies here and there.

3. Know thyself.

Personal finance writer Mario Bonifacio of DebtBlag.com explains that one aspect of his banking habits that has saved him the most money over the years has been using USAA, which offered special benefits for veterans like himself. “The customer service reps really work with me to pick the account types that are best for me and both charge no fees for using other ATMs — and reimburse any fees charge,” he says.

4. Benefits can go the distance for you.

If you’re in the habit of traveling, online banks can offer benefits when it comes to travel. Harry Campbell of yourpfpro.com says because traveling is a priority for him, he always looks for how his bank can help him out while he’s on the road. When traveling abroad, he advises people to be aware of your bank’s international ATM fees. Unlike in the United States, a lot of foreign ATMs don’t charge fees to take your money out but your U.S. bank might.

5. Write a laundry list.

The busyness of life may keep you on a hamster wheel of apathy even when it comes to your money. Consider writing concrete examples about what you don’t like about where you currently bank. Be specific and succinct about why it’s not a fit. When you stop to analyze things a bit, you might discover certain aspects about your banking that could be the main cause of your financial woes. Write down a wish list as well to explain what you envision from your new institution. You’ll be equipped to ask the right questions when you shop around and be better able to weigh the pros and cons when deciding.

6. Ditch the sunk cost fallacy.

Just like ending a romantic relationship, leaving your bank doesn’t have to mean a dramatic breakup. Though it may not always be easy to switch when you have a deeply rooted relationship, it isn’t a reason to avoid doing so. Think of it as if you’re ripping off a Band-Aid. It may hurt a bit but you just have to endure the momentary discomfort and then it’s over. Remember loyalty to any relationship that has gone sour can continue to cost you money if you don’t do anything about it.

7. Give credit where credit is due.

When it comes to stashing cash, Jackie Lam of Cheapsters.org opts for a credit union all the way. “Banks are for-profit financial corporations, while credit unions are non-profit institutions offering discounts to their members.” She explains that you can work with a local credit union that limits membership to affinity groups like community residents or certain occupations, or you could join a national credit union offering membership to everyone.

If the financial institution you use is no longer meeting your needs, locating the best place to put your money might seem like an arduous task. It’s important to take your likes and dislikes into consideration before making a switch. Consider some of the tips listed above to point you in the right direction.

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7 Tips for Finding a New Bank originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
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