Consumer Tips On Organizing and Simplifying Finances by the FDIC

Consumers who organize and simplify their financial life can eliminate clutter, save time, reduce stress and save money on fees, interest or other charges. The Winter 2010/2011 issue of FDIC Consumer News, published by the Federal Deposit Insurance Corporation, features tips for streamlining money management. Other timely topics include strategies for getting asmall business loan, a warning about new financial frauds on the Internet, an explanation of the unlimited FDIC insurance coverage for noninterest-bearing transaction accounts, options for boosting college savings, and ideas for positioning personal finances for changing interest rates.

Here’s an overview of the topics, tips and other information in the latest newsletter.

  • Organize and simplify your financial life: The newsletter offers basic strategies in areas such as automating many banking and bill-paying chores and putting important papers in order, including guidance on how long to keep bank statements, credit card bills, canceled checks and other financial records. Also covered are mobile banking by smartphone (a hand-held device used to access the Internet, run applications and make phone calls), managing a mortgage in good times and bad, and preventive measures for reducing the chances of becoming an identity theft victim if a wallet is lost or stolen.
  • Strategies for getting a small business loan: Small businesses are critical to the American economy, and for these companies to survive and generate new jobs, they need credit on affordable terms. The newsletter offers tips for getting a loan, starting with the importance of preparing or updating a business plan. The FDIC also has two new resources that can help small business owners who have questions or concerns about borrowing money: a toll-free hotline (1-855-FDIC-BIZ or 1-855-334-2249) and a Web site (www.fdic.gov/smallbusiness).
  • Fraud alert: text messages, pop-ups and downloads to avoid: The FDIC warns consumers to be on guard against “urgent” text messages, unexpected pop-up windows on Web sites and unsolicited “deals” on downloads that have tricked consumers into divulging valuable personal information to financial criminals. Consumers also should be careful when disclosing information and clicking on videos, pictures and links on social networking sites because computer hackers visit these sites to install malicious software on network members’ computers and gain access to online bank accounts.
  • A closer look at the unlimited FDIC insurance coverage for noninterest-bearing transaction accounts: Under the Dodd-Frank financial reform law enacted last July, certain checking accounts that pay no interest will benefit from full deposit insurance coverage during the two years from December 31, 2010, through December 31, 2012. Because the FDIC continues to get questions about this new program, important information is highlighted.
  • Saving for college: As states tighten their belts and higher-education budgets are squeezed, the FDIC provides tips on saving for college and minimizing the sticker shock of higher education. The most important recommendation is to start planning and saving for college as early as possible, preferably soon after a child is born.
  • Why interest rates matter: Rates will head up as the economy gains steam, but exactly when is still uncertain. Now is a good time for consumers to assess how interest rate changes may affect their savings and borrowing plans.

The goal of FDIC Consumer News is to deliver timely, reliable and innovative tips and information about financial matters, free of charge. The Winter 2010/11 edition can be read or printed at www.fdic.gov/consumers/consumer/news/cnwin1011.

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