GOtalkmoney Blog

AloStar Bank of Commerce has a 1-year CD rate of 1.27 percent annual percentage yield (APY). The CD rate is above the average rate of 0.66 percent APY for a 1-year certificate of deposit. The interest rate is current as of July 11, 2011. Other CD rates and terms include:

• 0.26 percent APY for 30 days
• 0.81 percent APY for 90 days
• 1.12 percent APY for 6 months
• 1.08 percent APY for 9 months
• 1.17 percent APY for 17 months

You need a minimum opening deposit of $1,000 to open a certificate of deposit at Alostar. Interest is compounded daily. For CDs of 12 months or less any interest earned is paid at maturity. For CDs with terms over 12 months interest earned is paid annually. There is a substantial penalty for withdrawing funds early.
The bank also has a money market account that earns 1.06 percent APY on balances of $50,000 and up. Balances below that amount earn 0.5 percent APY. The money market offer is good for new customers who deposit at least $50,000 and for existing bank customers who transfer at least $25,000 from an external account. AloStar Bank of Commerce is based in Birmingham, Ala.

Employers added almost no new net jobs last month, and the unemployment rate was little changed at 9.2 percent, up slightly from 9.1 percent. The latest report from the Labor Department was disappointing and has many people concerned about the economic recovery.

The number of long-term unemployed, or those without jobs for at least 27 weeks, was mostly the same at 6.3 million. The long-term unemployed account for 44.4 percent of those who are jobless. The number of people unemployed for less than five weeks rose by 412,000 in June.

For many jobless folks, it is impossible to even think about building a savings and planning for the future. In fact, people who are counted as long-term unemployed are more likely to dip into any savings accounts, or even retirement funds, to pay for basic living expenses.

Some people are able to find part-time employment to help pay bills even if that isn’t their preference. These involuntary part-time workers, who numbered 8.6 million in June, either had their hours cut or were unable to find a full-time job. There also were 2.7 million people marginally attached to the labor force. They wanted and were available for work and had job hunted sometime in the previous 12 months, but were not counted as unemployed because they hadn’t looked for work in the four weeks preceding the survey.

Some banks are using customers’ shopping habits to generate a new revenue stream. According to CNN, some retailers are using data supplied by banks to send out targeted offers to potential customers. The messages may come via emails, texts or in bank statements. Should you be worried?

According to CNN, “The banks don’t actually hand over your data to retailers. Instead, retailers describe what type of customer they’d like to target and the bank then sends the deal to customers who fit the profile. When the customer cashes in on the deal, the bank gets paid a commission.”

If you are uncomfortable with your data being used in this way, you have the right to opt out. But more banks are using this approach to generate funds, since they get a cut of successful transactions. In fact, such deals are expected to bring in about $1.7 billion to banks by 2015, forecasts research firm Aite Group.

But you may also view these types of programs as incentives for doing business with certain banks. Many people look for credit card offers with rewards programs, and these type of targeted discounts may become more popular with consumers looking for shopping deals.

Open a Chase Freedom credit card and you could get up to $200 cash back. The deal allows you to earn $100 after spending $500 within the first three months. Spend an additional $1,000 within six months and you could earn another $100.

The Chase Freedom card has no annual fee and a zero percent introductory rate. If you are late with a payment, the bank will end the introductory interest rate. After that period your interest rate will be based on your credit. The credit card offers from Chase also allow you to earn 5 percent cash back on purchases up to $1,500. The purchases must be made on bonus categories that change each quarter. There also is a 1 percent cash back bonus on all other purchases.

Among the fees you may have to pay with the card is one for $5 or 3 percent of the amount of any balance transfers. The bank also charges a $10 or 3 percent fee for cash advances and 3 percent for foreign transactions. Late payments, going over your credit limit and returned payments each result in a penalty fee of $35.

ING Direct is offering some special deals to celebrate Independence Day. The deals can help you save money but are only good until tomorrow, July 2, at 11:59 p.m. ET.

Open an Electric Orange checking account and you could earn a cash bonus up to $126 dollars. You must make three purchases using an Electric Orange Card of Person2Person Payments within 45 days to receive a $50 bonus. The bonus will automaticaly be deposited on Aug. 21. You could earn another $76 for setting up and making two direct deposits of at least $250 each by Aug. 31. If you meet the qualifications, the $76 bonus will be deposited into your account on Sept. 8. The checking account has no monthly or overdraft fees.

Other offers at ING Direct include:

• Earn a $76 bonus for opening a Sharebuilder investment account
• Get up to $1,776 off closing costs when you apply for a mortgage
• Get a $76 bonus for opening a savings IRA with at least $1,000
• Get a $76 bonus for referring two friends who successfully open an account; each friends earns $25
• Get 17.76 percent off purchases at shopingdirect.com when using coupon code 1776

Accounts at ING Direct are insured by the Federal Deposit Insurance Corp.