Small banks are now trying something to get depositors from the big names that have been decimated in the current economic crisis. They are offering something called Rewards Checking. Basically the promotion is, if you open an account and follow certain guidelines they will pay between 5% to 6% interest. In addition other banks are offering a sign up bonus. The amount varies but is roughly anywhere from $25 to $200 in cash or bonds.

    This can obviously be a good way to take advantage of the current environment to earn yourself a little extra cash. Remeber these two important things before signing up for any of these promotions. One, you must follow their requirements exactly or forfeit all the perks. Two, these are PROMOTIONS and in the fine print they remind you that they can change at anytime. What does this mean? As soon as things start improving and the big guys stop hogging the cash, these banks will have to turn your promotional account into a normal checking account to stay competitive. This of course is my opinion but please be aware these deals are not guaranteed for any amount of time. As always, I am constantly looking for ways for motivated people like myself to earn that little bit extra on our hard earned cash.

   You will also see that they all have a cap on the amount that can earn the Rewards rate. The cap for all of the banks mentioned in this post is $25,000. If your account exceeds that amount you will be paid whatever pitance they offer on the balance in excess of the cap. I provide the rates as of March 9th and the links for the aformentioned banks below. To see who is offering the sign up bonuses follow this link, Cash Bonus, and scroll down to the Cash Bonuses table.

Southern Missouri Bank   6.01%

Rocky Mountian Bank       6.01%

First Robinson Savings Bank    6.01 %

First Bank Des Moines  6.00%

Bank Of Blue Valley       5.51%

*Data from Money-Rates.com as of March 9th

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   The stock market ends the day almost up 380 points. I know most of us out there , including myself look at this with very little to no confidence. However, at the same time I would like the bleeding to stop.  I am young but the punishment that my 401(k) and investment accounts of friends has taken has been just as painful.

   Why did the stock market rally today? One big reason noted was the CEO of Citigroup, Vikram Pandit, announced that Citi has seen profits in the first two months of this New Year. Now I choose to take this with a grain of salt, but at the same time I would like to think the amount of money thrown at them is finally making a difference.

   AT&T announced that they are going to add 3,000 jobs to their broadband and wireless service. They also said they are on track to maintain last years budget of approximately 18 billion in spending. As a side note if you are looking for a stock still paying a solid dividend, AT&T is yielding 6.90% pay $1.64 per share. ( Note, for those investing, Verizon is yielding 6.40% with a $1.84 per share dividend. They continue to maintain a stronger balance sheet as well. I would not buy both and am not saying to purchase either without doing your own due diligence. )

   Finally, it has been leaked that the Fed may be reinstating the Uptick Rule. This is important as it was allowed to expire in 2007. Since then shorts have punished the financials and anyone else they could throw in their net. I am all for making money but since the SEC has proven itself mostly incapable of regulation speed bumps need to remain in place to slow these guys down.

   Just for your information, gold is down and oil is up. Take from this what you may. I am still investing, and learning. This lesson has been more painful than most but I know I cannot time the market. The current circumstances are more of an anomaly than the norm. I think if I could do it again I would hold more in cash. Unfortunately, cash offers such horrible rates now. Ironic, people are finally saving and the interest rates are so low. Any ways , fingers cross we have more positive news tomorrow. Take my poll at the end of this post

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   Credit card companies continue to make managing credit even more difficult. Never had an industry been so self massaging. They sue Bill Gates of Microsoft for bundling Internet Explorer with Windows saying it is antitrust but the credit card company and related benefactors basically run a racketeering scheme.

   Keeping a good credit score has some basic components. Once of these is that constant balancing act of credit used to credit available. There are many opinions on what the ideal ratio should be, zero obviously being ideal. However, that may not even matter as credit card companies continue to change the game.

   The banks are now closing credit lines that lay dormant as a way of protecting themselves from potential loses. As if it were not difficult enough to qualify for a mortgage, now your credit score is being reduced on your behalf. They are also reducing credit limits but this should not be a problem if you are responsible with your credit use.

   Obviously being smart and living within your means will keep your credit score high and none of this would be an issue. However, most of us work so hard to live check to check its nice to treat ourselves on occasion. Plus, if there was an emergency the current practices by the banks of closing or lowering credit lines strips away a major fall back for most people.

   It is recommended dormant credit cards be used once a month for a small purchase, paid off every month,  to keep the credit line open. Especially if it is a card you have had for a long time. Credit history is a major part of your credit score so you want to keep your oldest credit lines from being closed. If these unused cards have no balance they should help decrease your total credit use percentage. If you have any tips on keeping a good credit score, leave a comment or create a post.

~Matt