Brendan’s Blog

Most financial experts recommend keeping some quantity of cash savings available for emergencies. Up until a few months ago I kept my cash savings in standard Certificates of Deposit with my credit union. CDs provide a modest interest return, but make quick access to the funds painful with early withdrawal fees. I did a little research for a good alternative and found GMAC Bank. Its interest rate returns are better than CDs and there are no “early withdrawal” penalties.

GMAC Bank offers a “Money Market Savings” account which earns a very competitive interest rate, currently 5.30% APY. Deposits are FDIC insured and can be made via mail (postage-paid envelopes are provided at no cost), ACH, or wire transfer.

After opening your account you will receive a small order of checks and a VISA Debit/ATM card. ACH transfers of funds from GMAC to your normal bank account are free and take ~24-48 hours.

There are a few minor catches (of course) but I could easily live with all of them.

• Minimum balance of $500 to avoid monthly charges
• Maximum of 3 check/debit card transactions per month
• Maximum of 6 withdrawals, or transfers to other accounts, per month
• No local bank branches you can go visit

The GMAC Bank web site is simple and secure. From the web site you can do basic account management such as reviewing transactions or initiating a deposit or withdrawal (via ACH.) GMAC Bank will also download transactions to Quicken or MS Money.

You can open an account online or by phone.

• Open an account online
• Open an account by phone: 1-866-2GMBANK (1-866-246-2265)

One of the things that both my wife and I do on the Internet is shop. I tend to buy consumer electronics, she tends to buy clothes for our daughters. We both have found techniques that work for us. I can only speak for me, so if you’re looking for how/where to buy clothes, this article isn’t going to help you much.

1. Look for product reviews. Before a purchase, I use Google to find product reviews of the items I am interested in. A simple search such as “review netgear wpn824” will locate several useful sites.
2. Check the manufacturer’s web site. Frequently it will contain feature overviews, suggested retail pricing, information about a newer models/versions, and perhaps even an electronic copy of the user guide.
3. Compare prices. Once I have selected a specific product to buy, I use two web sites to look for price comparisons. The first is http://shopper.cnet.com/ which specializes in consumer electronics and frequenty includes product ratings and review. The second is http://www.pricegrabber.com which has a wider variety of items, but doesn’t contain product reviews. Both sites allow you to compare total price after shipping by entering your zip code.
4. Purchase with a Credit Card. I make nearly all of my on-line purchases with an American Express charge card. The credit card adds several types of protections such as a purchase protection, return protection, extended warranty, fraud protection, and dispute resolution. While debit cards or PayPal may provide some of these features, I prefer the convenience and features of my American Express card. Your preferences may vary of course, as credit cards are not for everyone.
5. Use Low-Cost Shipping. If you really need a product quickly, you are often best-off buying it at a store. The premium cost of overnight or two-day shipping is rarely worth the cost to me. So what if the new CD/Book/Mouse gets here in 5 days instead of 2. I’ve obviously lived just fine without it so far…. what’s an extra three days?
6. Consider Used. People tend to either love or hate eBay. I have purchased many used items so far, and only gotten ripped off once (on an original XBox.) Usually new products are more expensive (after shipping) on eBay than they are at other places, but used products can be much cheaper. If you are buying CDs, movies, or books consider using Half.com. I have had nothing but great experiences here.
7. Check for rebates and coupons. I have found that the Hot Deals forum at FatWallet.com has great information on some items. I frequently perform a search here for my item before I buy it elsewhere.