The financial regulatory reform bill passed in Congress last week and is expected to make some significant changes in how banks do business. Some of the changes that banks and other businesses can expect are:

• Caps on interchange fees, also called “swipe fees.”  These are the fees merchants must pay to networks such as Visa or MasterCard when they process debit and credit card transactions. The cap will also apply to debit card transactions.
• Banks and other mortgage lenders must fully document income and assets of people applying for mortgage loans. The change is aimed at protecting borrowers from being hit with high fees and risky loan terms.
• Banks won’t be able to charge prepayment penalties on most mortgage loans.
• New rules aimed at stopping some of the problems that have lead to bank failures.
• A newly formed Consumer Financial Protection Bureau to regulate lending  at banks and other institutions.
• The ban on business checking accounts that pay interest would be lifted.

The bill  is a massive piece of legislation and it is tough to detail all the changes that are included. However, one of the areas that may directly impact consumers is the creation of an Office of Financial Literacy to help Americans learn more about savings, loans, and other financial issues.

Are free checking accounts on the endangered species list? Maybe. More banks and credit unions have added fees to cope with federal laws regarding overdraft charges and restrictions on interchange fees, which are paid by merchants when accepting cards that use networks such as Visa or MasterCard.

Free checking accounts have no monthly maintenance fees and usually have no minimum balance requirements. Banks were able to offer free checking because they earned fees from other services, such as bounced checks and customer use of ATMs that were out of their networks. According to NorthJersey.com:

Overdraft fees on ATM withdrawals and debit-card purchases have been particularly lucrative for banks, generating $18 billion to $23 billion, according to a study by Novantas LLC, a New York consulting firm, and Informa Research Services. These fees typically range from $20 to $35 per transaction.

So what can you do if your bank decides to start charging for a checking account that was previously free? Shop around to compare the features of several checking accounts to decide it you should remain loyal to your current bank. Also, exercise your right to opt out of overdraft protection on your current checking account. Banks can automatically sign you up for overdraft services if you don’t opt out.

Have you been saving money like crazy to buy a home? The good news is that mortgage interest rates are near historical lows, making this a great time to purchase a home. It may be time to crunch some numbers to determine if you have enough for a down payment to make your dreams of home ownership a reality.

Mortgage lenders are offering an average interest rate of 4.75% for fixed 30-year mortgages, according to Freddie Mac. Keep in mind that only borrowers with the best credit scores are going to qualify for the best interest rates.

The amount of savings you have can also influence the type of mortgage deal you are offered by banks. The more money you have in savings to make a down payment, the lower your monthly payments are going to be.

When running the numbers on home ownership, use a mortgage calculator that lets you play with the numbers. You can determine whether your current savings is sufficient, or if you need to keep adding money to a savings account a while longer. A mortgage calculator can also help you determine whether paying points can help lower the mortgage rate you are offered by banks.

You need to make a decision about whether or not you are willing to pay overdraft fees–charges made by banks when you attempt to take more money out of a checking account that you actually have available. Checking account overdrafts can occur whether you use a check or debit card.

Beginning July 1, new customers at banks must agree whether or not to opt in to overdraft protection. People with existing bank accounts have until Aug. 15, to decide. Do not ignore mailings from banks because one of them may have the notice informing you about how to opt out of overdraft protection.

If you opt out of overdraft protection, you can do away with expensive fees that can add up quickly. Many banking customers have stories about being charged a $35 overdraft fee after spending a few bucks on a coffee or other small purchase. Often the overdraft fees were charged without their knowledge or consent.

Instead of opting in to overdraft protection, you may be better off linking a savings account to your checking. Funds in your savings account are used anytime you attempt to withdraw more than is available in a checking account.  Generally, the fee for using a savings account if you overdraw is less than the charge for an overdraft fee.

Government data show that U.S. consumers chose to put more money in savings in April rather than spend it. Although incomes rose 0.4%, many households avoided spending the money and instead added it to savings accounts. As a result, the savings rate rose to 3.6%.

Many people are concerned about whether or not the economy is recovering fast enough. But many economist believe the economy is on track and expect it to grow.

In addition to an increase in incomes, some people could ultimately increase their savings if they take advantage of low mortgage rates and refinance home loans. Mortgage rates are averaging 4.78% for 30-year loans and 4.21% on 15-year loans, the lowest level in almost 20 years.

While savings rates are pretty low right now, it still makes sense to put away as much money as possible for your future. Building savings can give you a financial cushion in case of a job layoff or other emergency. Keep in mind that the unemployment rate is at 9.9%, and many people are still having a tough time finding jobs. It’s important to stash away as much money as possible even if you don’t earn much interest on savings accounts.

Shop for savings accounts, money markets, and certificates of deposit.