Many of our clients ask about the best way to protect their personal information and prevent identity theft. 

We tell them to use CASH.  

Yes, the old fashioned way of using paper money really is the most secure way to keep your information safe.  No worries about fake machines capturing your credit card information or an unscrupulous employee snapping pictures of your credit card with their cell phone.  It doesn’t matter if the businesses you frequent don’t have adequate customer data protection because nobody can trace your cash.

Well, as you can imagine, most people respond with, “I never carry cash” or “It’s just not convenient”.  So we recommend consistent credit report monitoring along with ID theft prevention tips that include being extremely cautious in giving out your personal information.

And now there is another reason to consider good, old cash.  Saving money.

A new survey released Monday by Bankrate.com shows that it is costing consumers more for the convenience of their banking services.  The fees for out-of-network ATMs and for bounced checks both rose this year.  The 13% increase in using another bank’s ATM makes the average fee now $3.43.  The average cost of a bounced check is now $28.95, up 2.5% in the past year.

WHAT TO DO TO SAVE MONEY
1) If you still pay monthly maintenance or account fees for your checking account, ask your bank about free checking.  Most banks now offer some type of no-fee checking account and you may be able to switch yours.

2) If you must use an ATM, be sure it is part of your own bank’s network of affiliated machines.  Your bank can provide you with a list of affiliates that you can use at no charge.  You can also check the back of your debit card to determine which network it is part of; these can be researched online for machines in your area.

3) You can monitor your checking accounts online with 24/7 access to keep on top of your account balance and avoid those dreaded bounced checks and their fees.  Some accounts can be set up to send you electronic alerts if your balances fall below a predetermined limit that you set.

4) Link your checking account to your savings account for overdraft protection.  Most banks charge little if anything for this service and money is automatically transferred from savings into checking if there is not enough money to cover the check.  Beware of linking the checking account to a credit card for overdraft protection as it may be more expensive, not only with fees, but with the subsequent interest on unpaid credit card balances.

5) Check with your banker on credit monitoring programs they offer.  Many financial institutions include some sort of identity theft protection and/or credit report monitoring at no charge to certain account holders.  If you qualify for this free service, sign up and use it.

For more money saving and credit building information, order your Credit Analysis today.  It’s a great way to improve your Financial Fitness.