This often hidden fact can be a surprise to some when they reach their 7th withdrawal in a month and get dinged with a $10 fee and a tisk-tisk e-mail from their bank.

So what’s the deal with this restriction? What do banks gain and what exactly is considered a withdrawal?

The good news is that deposits to a savings account are unlimited, but any withdrawal from the account is considered a transaction. This includes transferring within different savings accounts or transferring to a linked account.

Each savings account receives 6 transaction per billing cycle and the 7th transaction results in a fee. If the transactions keep occurring, the bank may even shut down your account.

The Actual Rule

According to Ally’s site: “The limit is actually set by federal law for electronic and telephone transactions from all U.S. savings and money market accounts.”

The legislation for the 6 transaction limit rule is referred to as Federal Reserve board Regulation D.

In layman’s terms: your bank doesn’t need to legally keep any of your savings account money in reserve. They can loan it out and because you can only make 6 transactions per statement cycle, they can be pretty sure that at least some of your money will remain in the account in case they need to tap your funds. The rule is a little confusing, but it makes sense from a business standpoint.

If you’ve read FF you know why I’m pro-online savings account so here’s the fees for online banks if you break this rule:

Online bank’s fee for each transaction after 6 in a billing cycle:

Ally: $10

ING: No fee, but may close account if withdrawals continue

Everbank: $10

FNBO Direct: No fee, but may close account if withdrawals continue

WT Direct: $10

HSBC: No fee, but if the transaction limits are exceeded for any 3 months during any twelve 12 month period, the Bank may be required to close the account or the account type be changed.

Emigrant Direct:No fee, but if you exceed the limit of six withdrawals for several months, your account will be closed.

Has any one ever had a problem with this rule with their bank?

Photo: CarbonNYC

————————————————————-

Subscribe Follow us on Twitter Get email updates

Running a personal finance site doesn’t allow me to write about current events all too often so allow me to hop on the LeBron to Miami train and throw a personal finance twist on it.

We’ve heard multiple reasons for LeBron’s final decision to head to Miami – playing with some of his best friends, living in South Beach, warm weather, being around Pat Riley, a team that has won recently won a championship – and an unusual one: no state income tax.

So what exactly does Florida not having state income tax do for LeBron?

The answer is surprisingly huge.

What Is State Income Tax?

It’s exactly as the name sounds – a tax on your income from the state you reside in. Currently, there are 7 states in the U.S. that have no income tax – including Florida, Alasaka, Texas, Wyoming, Nevada, South Dakota, and Washington. States differ on the amount of income tax they charge their residents, but it’s anywhere from the lowest – Illinois (3%) to Hawaii (a whopping 11%). States make up for the loss by usually raising the sales tax.

So how does this affect LeBron going to Miami?

Well, here’s the state income taxes of the other teams LeBron was considering playing for:

• If he went to the Bulls in Illinois he’d pay 3%
• If he went to the Knicks in New York he’d pay 7.85%
• And if he stayed in Ohio with the Cavaliers he’d pay 5.9%

By playing for Miami, LeBron’s contract – which will be near $100 million – will avoid any state income taxation in Florida. He will still have to pay a jock tax when he travels to other states to play. This tax started in California in the ’90s as a way for states to benefit from opposing player’s large contracts. LeBron would’ve paid $436,818 in jock taxes last year if he would have been in Miami.

There’s a lot of different taxes and situations to consider, but according to the Miami Herald, “when Cleveland city taxes also are factored in, LeBron would make $1.014 million more in Miami than in Cleveland over the first five years of a contract.” LeBron paid almost $900,000 in state income tax as a member of the Cavaliers and that number would head towards $1.5 million if he would’ve been in New York.

Take From the Rich

One final note. Many lambasted LeBron for agreeing to the 1-hour primetime special, titled “The Decision.” We’ve never seen anything like it, and of course, people came from far and wide to rip LeBron and his king-size ego to shreds. I’m not going to say LeBron was selfless in this venture, but his actions did do a lot of good for the Boys & Girls Club of America.

The 1-hour special with sponsorships from Bing, Nike, and Sprite will allow more than $2 million to be donated to the Boys & Girls Club.

Can you blame him for taking advantage of his prosperous position and doing some good?

I can’t.

Long live the King.

Photo: Craig Hatfield

————————————————————-

Subscribe Follow us on Twitter Get email updates

Have you ever read a Yahoo! article about personal finance and looked at the comments? There’s usually one crazy person who swears off everything about banking or investing and claims the world is ending so they’ve strapped their life savings to the floorboards in their kitchen.

Banks that are FDIC insured provide security up to $250,000 so it’s a good idea to hold your money in a bank, but people are often surprised to learn there are alternatives to using banks. They’re called credit unions.

Credit unions get a bad rap because the name has two words with negative connotations – credit and union. In reality, credit unions are one of the most pro-consumer entities in the community today. A credit union is owned by its member and exists to supply reasonable credit, banking services, and customer service to its members.

Let’s look at the pros and cons of joining a credit union for your banking needs.

Pros

- Not-for-profits

Have you ever had a bank try to sell you a mortgage when you just wanted to deposit your paycheck? It’s slimy. Big banks are in it for the bottom line and will go to any lengths to get you to give them more money.

Credit unions, on the other hand, are owned by its own members and provide adequate and moral banking to its members. They take a cut to make the bank grow, but any other surplus is given back to the customer in the form of better rates or service. The tricks and games aren’t a part of a credit unions agenda – they have the needs of the consumer in mind at all times.

- Based in your community

The world’s getting smaller, but credit unions are one of the few organizations out there that still hold ties to your local community. Many credit unions are restricted to a certain geographical location which means you can become a part of a group of like-minded people – your neighbors. This usually leads to…

- Superior customer service

This is the #1 reason a lot of people join credit unions. They exist because you – the customer – exists and will do their best to please you.

The members, employees, and board members are going to be people you know and live near so they’ll be a level of togetherness and trust when you join a credit union. No one will try to sell you a loan you can’t pay, instead, you’ll feel safe with your bank because the way they approach customer service and the organization/customer relationship is totally different than that of a big bank like Chase or Bank of America.

- Same bank services as your big bank

Auto loans, mortgages, savings accounts, retirement accounts, and checking accounts are all available at credit unions. They may have a slightly different name for an account, but credit unions offer almost all of the accounts your normal bank does.

A vast majority of them are also insured – 95% of state chartered credit unions are insured and any federal credit union is insured up to $100,000 per account and $250,000 for retirement accounts. Side note: always make sure you’re bank or credit union is insured before doing business with them.

Last, credit unions provide equal or better savings rates and better loan rates because they don’t have the bottom line to constantly worry about like big banks. If you’re a bare bones banker – like 97% of the world is – then credit unions are more than sufficient for your needs.

Cons

- Limited to certain areas and communities

Credit unions are either centered around a community or certain group – like veterans. Therefore, if a branch isn’t located near you, you’re out of luck. Shopping around is also difficult or impossible since you must belong to the certain community to join. This means if you’re local credit union is subpar, you’re out of choices.

- Web interfaces are lacking

Online banks are so popular because they understand that today’s banking customer uses the internet to bank and rarely visits a branch. Because of this, they center their business around their online presentation. Easy transfers, customization, and interest tracking are just some of the options my online banks offers.

I don’t belong to a credit union, but the ones I looked up had pretty dismal web interfaces. They often don’t invest a lot of money in to web design and may not even provide online banking. This may not be something that worries you, but if you do a majority of your banking online you may tire of the lack of options.

- Lack of funds

Because credit unions are small they avoided a lot of the bad loans that brought down the financial industry 2 years ago. In a time where a record amount of banks were closing, credit unions were holding their own. Big banks have an advantage though – large amount of funds and the abilitiy to get credit. According to Credit Union National Association in 2009, credit unions held $885 billion in assets, compared to $13.4 trillion for big banks.

Credit unions are not-for-profit and tax-exempt which means they must turn a surplus in order to prosper and survive. Many do becuase they’re managed so well, but having limited funds to pull from can be troublesome. If your credit union is insured, this doesn’t matter much, but it could cause a minor headache if the credit union goes under.

- Expenses still high

They remain small and conservative, but they still spend money on workers and the building. Therefore, their overhead will probably be considerably more than an online bank that exists solely online. Online banks return this money in the form of higher interest rates on savings and checking accounts. This isn’t the strong point of credit unions, so a lot of people are more than willing to give up extra interest in return for superior customer service and trust in their banking situation.

::::

If you’re interested in joining a credit union or just researching the topic more, search Google for “credit union” and it’ll return the credit unions in your area.

What do you think of credit unions? Would you join one? Are you currently a member?

Photo: nnecapa

What would you do if you lost your job and only had $500 in your checking account and 3 credit cards to pay your bills? What would you do if you broke your arm hiking and couldn’t afford the hospital expenses?

These are grave situations that people don’t like to think about, but emergencies happen. People often rely on credit cards in dire situations to fund any unexpected large expenses. The problem with using a credit card and paying off the expense over time is that the interest will end up making the emergency cost 2-3 times more than it would’ve if you paid out of pocket.

Life Pre-Emergency Fund

For example, you have to buy a last minute plane ticket to go to a funeral across the country and the entire trip costs $2,000. If you put it on your credit card with 17% interest and pay the $50 minimum, it’ll take 5 years to pay off and end up costing $972 in interest.

Funding large expenses with a credit card puts you in a hole and it’ll always be difficult to save money when your buried in credit card debt.

The Ingredients

This is why every one should have an emergency fund. Last week, I showed how to open a multiple savings accounts at your online bank. One of these multiple savings accounts should be your emergency fund.

This account will hold money you will only tap in case of emergency. An emergency is not a last-minute vacation or the iPhone 4. An emergency is an unexpected death in the family, an injury, a last-minute surgery, a loss of a job, a broken down car, or a theft.

Having money in this account will allow you to fund these unexpected events and remain above water without a) going in to credit card debt or b) worrying about maxing our your credit card limit when you should be concentrating on your emergency.

Size of Emergency Fund

There’s differing opinions about how much money you should have in your emergency fund, but it’s best to have anywhere from 3-6 months of living expenses if you’re single, and 6-12 months if you have a family.

That’s a lot of money, but don’t be discouraged by it. Right now, consider these numbers are goals. This isn’t something you need to have tomorrow or next Thursday, but it’s important you start funding this account ASAP.

What exactly are living expenses? Simply, it’s the cost of your day-to-day life. This includes rent, mortgage, household bills, internet, phone, food, car payment and insurance. Right now in Japan, my living expenses are very low so I’m fortunate that 3 months of living expenses is only around $2,000.

The emergency fund is your security blanket that allows you to sleep calmly at night and not have to wonder “what it?”

What if your car breaks down and you’ve already maxed out your credit card? What if there’s an unexpected death in the family and you need to fly cross-country? Having a sizable emergency fund will calm these worries because you’ll know you have money put aside for those events in a time of need.

It’s always important to have an emergency fund, but right now is no exception. Jobless rates are still near 10% and layoffs occur every day. The job hunt can last months so start the emergency fund today to insure yourself and your loved ones will be able to get by while you look for new work.

How much do you keep in your emergency fund?

Photo: Lomo-Cam

————————————————————-

Subscribe Follow us on Twitter Get email updates

Today, I’ll show you how easy it is to 0pen multiple savings accounts by opening a “House Fund” at my bank, Ally. Someday I’d like to own my home so I’m going to start a defined savings account just for that savings goal.

The process takes less than 5 minutes so let’s check it out.

Opening the New Savings Account

- Once you’re signed in to your account, you should be at your account list. Below your accounts there’s a little blurb and a link that reads: “Add another account.” Click that link.

- It’ll feel like you’ve been logged out and they want you to open an entirely new account. If you notice in the top right though, you’re still signed in. They don’t advertise multiple accounts, but you can open them. Choose “online savings” and click “open account.”

- You’re brought to the application process.

- In Step 1 choose the “start a new application” option.

- in Step 2 choose “online savings account” and decide if you’d like to fund the account. You can do this via your original account or at a later time.

- In Step 3 choose “individual” unless you are opening the account with a spouse, then choose “joint.”

- You’ve already added an owner when you first signed up for the account, so they should have your information automatically filled in once you choose individual or joint. Below is what my screen looked like.

- Step 4 requires your electronic signature. Read the Agreements and check the box. Click “Submit Application.”

- After about 20 seconds, the new account is opened. I chose to make a $5 deposit and Step 5 asks if I want to transfer from within my other Ally accounts, make an online transfer from another bank, or make an opening deposit later. Choose whatever options suits you and click “next step.”

- Step 6 is already complete because you’re already a member and set up online banking. Click “next step.”

- Congratulations! The account is officially open and available to access.

You’re now free to do as you please. If you’d like to name the account, click “go to my accounts” and click on your new account named “online savings.” Once there, look at the right sidebar and at the bottom it reads “Edit Nickname”. At the new screen you can easily edit all of the account names as well as the external accounts (accounts you transfer to/from).

Your new savings account has its own account number and is a separate entity from your initial savings account.

You can now transfer money between the accounts instantly so if you get paid and want to send $500 to your “Emergency Fund”, $200 to your “Brazil Vacation Fund”, and $50 to your “Charity Fund” you can in 5 seconds. You can do it one-time or set automatic transfers with options for weekly, every 2 weeks, monthly, every 2 months, quarterly, every 4 months, or twice a year.

It’s a little odd that Ally doesn’t advertise the multiple savings accounts, but once you get through the awkward “am I doing this right?” stage, you’re in the clear and enjoying your new account.

Do you use Ally? What do you think so far?

————————————————————-

Subscribe Follow us on Twitter Get email updates

Opening a multiple accounts allows you to create defined saving goals for things like “new laptop” or “vacation to Hawaii”. You can also create barriers within your money to help you visualize your savings progress.

These accounts act the same as your primary savings account; they still pay the same interest, they’re still attached to your bank, and they take less than 90 seconds to open.

Let’s take a closer look at the benefits of multiple savings accounts.

1) Create defined savings goals with easy transfers between accounts

Look at it this way. When you were twelve and you wanted to save money over time for a video game, you would store extra cash in a piggy bank or in a special place for that goal.

Multiple savings accounts are separate piggy banks for your savings goals. They allow you to see your savings grow over time as you save up for those big purchases. With the new accounts you don’t have to empty your savings or pay for an item over time on a credit card.

If you’re saving up for a car, you can create a new account called “Car Fund” or “OMG I want a Civic sooooo bad”. Whatever you like.

Transfers between your accounts are instant for most online banks and you can schedule transfers weekly, bi-weekly, or monthly which helps you easily grow your savings. You can create automatic transfers to your “Car Fund” account from your savings account.

For example, here’s how I would set up a transfer:

$2,500 paycheck deposited to checking on 1st of the month —–> transfer $1,000 monthly to savings on the 3rd ——>transfer $300 every month for 6 months to Car Fund on the 5th

Set this up once and it’s done. Your savings will grow with interest why you watch Glee or take a nap.

Your savings goal could be as small as a new phone or as big as a house. Whatever it is, it’s important to work towards the goal instead of funding it with a credit card and worrying about the consequences later.

2) Create an emergency fund

We’ll talk more about this later this week, but an emergency fund is an account with 3-6 months of living expenses that you only use for emergencies (job loss, accident,medical, etc.) I have one sub-savings account labeled “Emergency Fund” and every now and then I transfer money into this account. I never touch this money and treat it like I don’t have it. That way I’m not tempted to dip into it for a vacation or new laptop.

Having an account labeled “Emergency Fund” makes it more difficult to justify spending on a new iPhone or a trip to Vegas. Sometimes guilt is the best savings motivator.

How to Open Multiple Savings Accounts

On Sunday I’ll post a detailed write-up with screen captures showing how easy it is to open a sub-savings account at my online bank, Ally, but today I’ll give you a rough overview that will hopefully guide you through the process at your respective bank.

1) Sign in to your online bank.

2) Find the “Open new account” button and choose savings account. I’ve done this multiple times. It feels like you’re doing something wrong, but it’s fine. You’ll receive a new account number.

3) Fill in your information and name the account.

4) Fund the account if you wish.

5) You’re done. Set up a transfer, leave it be, or play around with it. Transfers between accounts are instantaneous for most online banks so test out how easy it is to transfer money.

You can also close the account at any time. Just transfer out any money in the account and they will ask you if you’d like to close the account. This may differ depending on the bank.

Won’t this Affect How Much Interest I Receive?

No. If you split up $3,000 into three accounts of $1,000, you’ll still receive the same interest.

Don’t believe me?

$3,000 in an account for 10 years that pays 3% will have $4,031.75

$1,000 in an account for 10 years that pays 3% will have 1,343.92 – exactly 1/3 of the above amount

Your money will still return the same amount so get those multiple savings accounts opened today and start working towards your goals.

Photo: annia316

————————————————————-

Subscribe Follow us on Twitter Get email updates

Let me retrace my steps.

The Beginning

It started on May 4th. I was giving myself a refresher on how to open an online savings account for a blog post. Obviously, I was doing my research through ING Direct (my online bank at the time).

I wanted the post to calm any fears of soon-to-be online bankers. I wanted to provide an easy step-by-step guide for opening an account. To make the post reader friendly, I also included screenshots of the application process so that people could follow along and understand my explanations better.

ING’s online application for a savings account is spread across 4 different steps and each one has a different page. In order to get from one to the other, I had to fill in some information. I quickly went along and used my name, a fake address, and other random fill-ins just to get to the next step; with the intent of canceling the application before officially applying.

Unfortunately, to get past a certain page within the application, some of my information had to be correct. First mistake: I used a falsified social security number – most of my number, and then a random 4 digits, once again, with no intent to actually apply.

I also linked my actual checking account so I could continue on the process. I needed to finish the post and I wanted the information and screenshots of the different pages to help the readers.

Second mistake: it’s been over 2 years since I applied for my account, and I accidentally went too far and officially applied for the account. I rushed through the process, using the application as a guide as I wrote the post and created the pictures. When I saw that I had received a new customer number, I grimaced, because I knew I’d have to get the mistake canceled. At the time I thought it would be nothing more than an email from me saying “Sorry, didn’t mean to do that, can you cancel this account?”

2 days later I received an email from ING’s “Investigations Team” with the subject line: “We need to speak with you.” I called when I got home that night.

The Phone Call

I explained my odd situation to the customer service rep and apologized profusely for my mistake (I wasn’t BS’ing him – it was dumb of me). For some reason, the rep ignored my apologies about the accidental account and instead kept mentioning that I lived in Japan, which he said was a problem.

He claimed that ING would have to shut down my account because I couldn’t live abroad and have an account with them. The idea that they would shut my account down was never a possibly to me. I stammered about trying to understand why this would be. I asked for some clarification and he put me on hold.

While he had me on hold I looked up the specifics behind international people having accounts. I still maintain an address in America (my mom’s house), have a social security number, and pay taxes so I’m officially eligible to maintain my account while in Japan (nice try, customer service rep).

He had me on hold while he asked someone about this, but came back with worse news. Apparently, the problem with me creating a new account using falsified information was a bigger problem than he originally thought. My mistake had caused a red flag in their system and he stated that I would have to “end my relationship with ING.” They would be closing my accounts and sending my money back to my checking account because I had accidentally created the false account.

I was stunned.

I had expected it to be a 2 minute phone call with an apology. Third mistake: not keeping my cool. I wasn’t mean, I was just jolted and couldn’t put my words together correctly. I stated how I valued their service and constantly was trying to get them new customers. I told him I had been with them for 2 years and had referred my mom, dad, girlfriend, personal friends, and many readers to their service.

He didn’t care. He said there was nothing he could do and we ended the call.

Irony

1) I was doing something pro-ING, trying to help them, promote them, and get them new customers. My (misguided) actions ended up getting me canned. A little funny, right?

2) When the rep was telling me they would be transferring my money out of ING, he mentioned I had 1 withstanding deposit. It was a $10 thank you from ING for referring a reader to open an account.

The Aftermath

Back to reality, I was angry. I thought it was an honest mistake with absolutely zero intention of causing any harm. They were so cold and bitter about it – I was truthfully hurt. I love their bank, constantly write about them, and refer anyone to them who is looking for an online bank. Regardless, they canned me and said I wasn’t worth the hassle.

I asked some fellow bloggers for advice on the situation. I got an array of responses such as: “leave it be, they’re bigger than you”, “ING’s known to cut their losses”, “fight it on your site”, “not a huge loss”, and “call again and ask for a superior”.

Based on how quickly the pushed the “terminate” button, I thought my chances of getting the account back were pretty slim. Regardless, I called again on Tuesday night to see if a new face would treat me differently.

Unfortunately, I ran into the female version of the Grim Reaper. She must be the one who delivers the pink slips around the office. I pleaded my case again, but she wasn’t having it. I had used someone’s social and it was causing that person and ING problems. She made me feel even worse about my mistake and at this point in the conversation I was just brainstorming new online banks I could go to.

The reason I didn’t choose to turn this into an Austin Morgan v. ING Direct battle on this site, other personal finance sites, and the Consumerist is that I made a mistake – and I still like ING. I’ll still refer them to friends (unless my new online bank blows them away – which I hope they do), I’ll still talk highly of them, and I’ll still pepper my girlfriend for updates on any new ING happenings.

The one overbearing, bad-taste in my mouth problem, was Ms. Grim Reaper. I admitted I had made a mistake, I apologized for creating a problem, but I told her I thought the amount of people I referred to ING – and would continue to refer to ING – would make up for this mistake and allow me to be reinstated. I was doing them a lot of good by bringing in new customers.

Instead of thanking me or saying how much they appreciate their users bringing in new customers, she completely brushed the referral system off and said that “the majority of our new users come from advertising.” She was so snarky and cold-blooded that it made me feel content that I was heading to a new online bank. It felt very two-faced of ING to promote this vast referral system of “Tell Your Friends We’re Great and We’ll Hook You Up With Free Money!!!” and then for her to brush it off that it doesn’t matter and their advertising works the best. (End of mini-rant).

The Farewell

Anyway, I’m sorry, ING. I didn’t mean to cause you any harm. You’re still my favorite bank.

I wish the situation could be fixed and that ING and I could grow old together, but we can’t. I’ll move on to live another day with a new online banking partner (the revealing and review of this bank coming next week!).

No hard feelings, ING. You broke my heart, but I’ll never stop telling my friends you’re the one who got away.

::::

Here’s the post that ended it all: How to Open an Online Savings Account.

Please leave your condolences in the comments below, thanks.

Photo: Bird Eye

————————————————————-

Subscribe Follow us on Twitter Get email updates

Today, I’ll show you step-by-step how to open up an online savings account at ING Direct.

Before we get into the steps, let’s answer the question: what is an online savings account?

Well, it’s an account where you keep your money, much like a checking account at your local bank. Thanks to the internet, a lot of online savings accounts have popped up which is great for consumers.

Here are some of the positives of an online savings account:

- You can link your checking account to your online savings account and transfer money between the two for free.

- Online savings accounts offers higher interest because they don’t have physical bank locations – they exist solely online. Read more about why your money needs an online savings account.

- With an online savings account (at least at ING Direct) you can create sub-accounts to split up goals. These accounts look like separate accounts, but they’re actually all within your savings account. For example, I have a “Savings”, “Emergency Fund” and “House Down payment” categories.

- They offer great user interfaces. These sites exist solely online so they’re very clean and easy to navigate. It’s easy to transfer money, link accounts, and it makes savings easier. They also promote savings and it’s fun to follow along as your earned interest rises from day-to-day.

Now let’s take a look at how to open up one of these accounts.

1) Go to ING Direct’s homepage.

2) On the left side, click “Open an Account”.

3) Under Orange Savings, click “Open Now”.

4) A window will pop up; this is the start of the application process.

The first dropdown asks: “What type of Orange Savings Account would you like to open?” You’ll probably just choose “Orange Savings Account”, but choose “Orange Savings Account – Joint” if you’ll be sharing the account with a spouse.

Fill out this part of the application. You’ll need to know generic information about yourself including address, e-mail, and social security number. You’ll also name your account under “Give Your Account a Nickname”. I went ahead and named mine “My Savings” but you can do anything you want here.

When you’re done, push “Continue”.

5) Now you’ll create a Pin number that you’ll use to sign in to your account.

This is just like the Pin number you use when you get money from the ATM. Choose one that’s between 6 and 10 numbers and write it down and keep it somewhere safe.

Click “Submit”.

6) Next is “Personal Account Disclosures”.

This is the legal jargon they need to provide you in regards to your personal information and the specifics of them holding your money. This isn’t vital to read, but go ahead if you’d feel safe. Check both boxes and click “Continue”.

7) Next you’ll need a check from your bank to fund your new online savings account.

This way you’ll be able to transfer money between the 2, for example, when you get a paycheck, you can send $1,500 to your savings account.

They make it pretty easy to figure out; you need your bank’s name, account number, and routing number (number assigned to your bank). They’ll ask for a 1st deposit; you can send as much as you’d like. For the example, I sent $50, but once your account is set up transfers are free.

They also ask if you’d like to start an Automatic Savings Plan. This is a place where ING Direct shines because they’re pro-savings and pro-consumer. You can set up automatic transfers from your checking account to your savings account. So say you get paid on the 5th of every month. You could set up a transfer on the 8th for $1,000 to be sent to your online savings account. This makes savings easy and worry-free because it does it for you. You can set up weekly, bi-weekly, or monthly transfers; and they’re easy to start and cancel. It’s something to consider, but it’s not vital to open today.

When you’ve filled in the information, click “Continue”. They’ll ask you to verify your checking account number and routing number – go ahead and fill those in again.

8) Step 4 of the application process asks you to verify your information.

If everything is correct, press “Continue”.

9) Next they ask you some identity verification questions to make sure you are who you say you are.

Answer these questions now.

10) Congratulations! You now have an online savings account.

The window should provide your new account number. Write this down, memorize it, and keep it safe. You’ll need it to log in to your account.

ING will now deposit 2 small amounts into your checking account and you’ll need to verify these when they do. This is to check if your account is correct and the transfers work. Check this in 2-4 days and then sign in and verify the numbers.

The first time you sign into your account, you’ll need to create some security questions and a picture. This is to keep your account safe so go ahead and do that.

Your application process is finished and now you can reap the benefits of an online savings account!

::::

I used ING because it’s what I use and a lot of people in the personal finance community use. Most online savings accounts will offer a similar sign-up process so you should be good to go if you feel comfortable with the steps above.

ING is truly a consumer’s bank and they offer some great bonuses. If you’d like a $25 bonus for signing up, email me at austin @ foreignersfinances (dot) com and I’ll send you a referral link. If you deposit at least $250 into your account, you’ll receive a free $25 – no strings attached (and you’ll hook me up with a $10 bonus).

Good luck and I hope you enjoy your new savings account!

————————————————————-

Subscribe Follow us on Twitter Get email updates

On Friday I wrote a guest post for PT Money about copy-cat recipe blogs. Corinne recently introduced me to these gems which post duplicate recipes for your favorite restaurant’s dishes. For example, this site hosts 75 different recipes for different Chili’s dishes. Pretty cool stuff.

Corinne’s been very creative in the kitchen as of late in order to fill our cravings for American-style food and she recently created an Olive Garden substitute dish for Chicken Scampi.

These substitute dishes are easy to make and cost a fraction of the price of the restaurant. I documented the process last week and Corinne was nice enough to add her comments to help you along with the process. I hope this will persuade you to try out your own copy-cat recipe for your favorite restaurant.

Here are the ingredients for the dish. We found all of this stuff in rural Japan so you should be able to easily locate these.

This recipe makes 2 servings.

Here’s the ingredients you’ll need:

- Flour: 2 tablespoons

- Milk: 3/4 cup

- Butter: 4 tablespoons

- White wine: 1/2 cup

- Salt, pepper, and other Italian seasonings: a dash of each

- Chicken broth: 1 cup

- Pasta of your choice: 2 heaping cups dry pasta

- Vegetable or olive oil for cooking: 1 tablespoon

- Chicken: 1 or 2 chicken breasts

- Broccoli: 1 cup

- Onion: 1/4 large onion

- Garlic: 2 cloves minced

- Other vegetables of your choice, I like bell peppers or cherry tomatoes, too

Here’s the directions for the recipe:

Begin by starting the scampi sauce. In a large pan, melt 3 tablespoons of butter and mix with wine and chicken broth. Let it cook on a low heat for about 25 minutes while you prepare the rest of the meal. Stir occasionally. After about 15 minutes, add garlic, vegetables, and seasoning.

Scampi sauce after 15 minutes

In another pan, heat cooking oil and cook chicken breasts for about 8 minutes on each side or until they are no longer pink in the middle. I like to cook the chicken then cut it up in cubes so the meal is easier to eat, but you could just as easily leave them whole. Once the chicken is done, add it to the scampi sauce so it can stay warm.

While everything is cooking, start your pasta according to the directions on the package of your particular pasta.

Lastly, you will need to prepare a white sauce to thicken the scampi sauce. In a small pan, melt 1 tablespoon of butter and add flour. When they mix together it should look like a thick, yellow paste. Add warm milk and stir continuously until it thickens into a white sauce. This should take about 5 minutes. When it’s done, add it to the scampi sauce and stir until thoroughly mixed. You can add the white sauce with vegetables and chicken still in the scampi sauce, just make sure everything mixes well.

Scampi sauce with white sauce added

Once the pasta is finished, drain and place in pasta bowls or large plates. Use a large spoon to dish out the scampi sauce onto the pasta. I like to serve it with white wine and fruit.

An average meal at Olive Garden costs about $12, but I would estimate that we spent less than $4 per person on this meal. The major cost is going to be determined by the vegetables and chicken you use. We usually use fresh peppers, onions, and chicken, but get frozen broccoli. You could cut costs but using all frozen vegetables and chicken.

Thanks to Corinne for all of the hard work and I hope you guys enjoy this dish!

Have you tried any copy-cat recipes for your favorite dishes? Let us know what you’ve tried and how it went in the comments!

Photo: Tyla

————————————————————-

Subscribe Follow us on Twitter Get email updates

Since I’ve been traveling a little bit more than usual within Japan, I posted a video about my favorite travel hacking personal finance tip that I think people tons of people could use in their lives to save hundreds of dollars every year: simply traveling with a water bottle.

Enjoy and feel free to share your favorite travel hacking money tips in the comments!

[If you can't view the video, click here to go to the page]

[:18] –  My favorite travel companion: the water bottle.

[:30] –  Savings of $250/year by avoiding buying drinks.

[1:00] –  I saved over $25 in 1 weekend in Osaka thanks to my water bottle.

————————————————————-

Subscribe Follow us on Twitter Get email updates