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In a previous post, we discussed staying out of debt and maximizing your savings by staying aware of the terms, fees, and features your bank offers and, most importantly, moving to a new one if you discover terms that suit you better. This time, we’re going to share a few more resources to help you locate those deals in your region and compare what’s available. Your bank is immensely important in your financial world, and a little part of it goes with you everywhere in the form of your debit card, so it’s worth getting the most out of it. Even if there weren’t many other options when you first started banking, there probably are now — and lots of people are hunting for the best ones.

There’s a name for this phenomenon: “Move Your Money.” Though it started among a widely dispersed group of taxpayers dissatisfied with big banks and bailouts, it has since generated a number of useful, grass-roots sources for getting and comparing information about practical banking matters. As with any “crowdsourced” movement, be sure to corroborate your data with official sources, and don’t be afraid to check several outlets before making a decision. Information is power: use it wisely and your budget will thank you!

The original home of the movement is the website MoveYourMoney. The top contributors here are opposed to the bank bailouts and make no secret of their desire to inform consumers about alternatives to big banks using taxpayer funds. They offer a variety of ways to search for smaller, community-oriented banks and credit unions by area. There’s also a network of supporters you can contact to get more information, and a helpful FAQ to give you context on why “moving your money” makes a difference in the bigger financial picture. With the latest news on Goldman Sachs just starting to make waves, don’t expect this to quiet down any time soon.

Not finding exactly what you want in your local area? All is not lost. Bargaineering has an article on Top Online Banks offering thorough comparisons of interest rates and other crucial factors at a variety of banks with complete online servicing. There are also detailed reviews of a handful of the “best” online banks with links to official information. Remember that, though the trend is toward expanded online features pretty much everywhere, not every small bank or credit union has a full suite of online services just yet. If online banking is important to you, this might provide the answer.

Last, but not least, don’t forget that a credible financial advisor can help you: not only with choosing a new bank, but a whole range of other crucial tasks, including dealing with creditors and reducing credit card balances. They may provide insight into a savings or investment strategy that will color your opinion on the best bank for you.

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Household savings is one of your first lines of defense against debt, but most people have more experience with credit than they do with saving cash. If you’re having trouble putting money away, use a little psychology and your bank account to help you out. Remember: it takes longer than a day or two to settle into new habits, and though resolving to save more and spend less is a good start, you’ll have to find a way to endure after enthusiasm starts to dry up. That’s where “Keep the Change” comes in.

Out of Sight, Out of Mind – And Into Your Bank Account

Several banks offer programs like “Keep the Change” which allow you to save an extra few cents from every purchase on your debit card; that is, the leftover “change”, rounded up. This amount is deposited into a savings account and you’re never aware of it; some banks even match it to some extent or offer extra incentives over time for leaving that money where it lies. Over a few months, this can amount to hundreds of dollars: enough to reach a small savings goal every year or find “extra” money for a vacation.

Big Things Come in Small Packages

Though this is only one savings tool, it is a powerful one. Since you never “see” that money, you can’t miss it, and it starts working for you right away. It may not seem like much, but think about this: every year the Treasury Department spends millions of dollars minting pennies and nickels – for, on average, more than their face value. Every time a coin is minted, that money adds up; and as taxpayers, we’re well aware of it. You won’t be making millions of debit transactions, of course, but there’s no reason the same principle shouldn’t help you reduce your debt.

Is Your Bank Working For You?

In a world of mounting bills and rabid debt collectors, this might seem like a strange question. But if you want to start saving from scratch, it’s an important one to ask. Take time to re-assess your bank and what it has to offer you. Value-added features like “Keep the Change” are useful, but they’re only one part of ensuring that a bank is really right for you. Look at your account features and things like overdraft fees, maintenance fees, and the quality of customer service. At a time when big banks are often re-instating monthly maintenance fees, smaller regional and local banks, as well as credit unions, are hunting for more business. You’re always entitled to move your money.

A Journey of a Thousand Miles …

Big, sudden changes in spending habits are like New Year’s resolutions: they start with a bang, but they’re not likely to stick. If saving is new to you, look for small things that add up to reasonable, but valuable goals. Most importantly, take action. Reading this blog is a good start, and there are two other things you can do right now: take a hard look at your bank, and take a hard look at the “other guy.” You might be glad you did.

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Since living through the 1990s economic collapse back home in Russia, I have always preferred using cash instead of credit cards – or even debit cards. I think I just got used to cash.

Since there was no equivalent of the US Federal Deposit Insurance Corporation (FDIC), many people lost all their savings when banks crashed. Forget credit – almost no one could obtain that.

The result? Most of us just came to accept that cash was the only option. The upside is that using cash made it very difficult to run up excessive debt.

Without getting into a discussion about the complexities of post-Soviet banking, I’m feeling a bit of dé ja vu these days. Bank collapses and difficulty getting credit and economic hardships..it’s all so familiar. The time has come to take a closer look at the merits of using cash.

It’s not just the parallels between Russia’s collapse and the one we’re living through now. There are also timeless reasons to use cash instead of a credit or debit card.

The first advantage of using cash is that you know where you stand financially. You don’t have to look at a bank ledger or a checkbook balance or a web page. When you need money, you know right where it is and how much you have. You also don’t have to write down how much you’ve spent in order to know much is left because it’s right there to count. You don’t have to worry about any fees caused by usage, as you might with credit or debit cards. Cash is also pretty much universally accepted; you don’t have to worry what bank’s name is written on it.

The second advantage of cash is that it can help keep you out of debt. There are so many ways that credit and debit cards encourage you to rack up fees, and I’ve seen people get into trouble with too much debt or with overdraft fees. With banks seeing lower profits on their traditional services, they are coming up with new and more complicated ways to recoup those loses through some rather creative fee strategies.

You can avoid those new tricks of the trade by sticking to cash. It reduces the need to consult the fine print in the latest correspondence from your credit card company. And watch out for new rules on checking accounts and debit cards. Cash also keeps you from overdrawing your account, avoiding interest charges and possibly other hidden fees.

Another smart move is to have an emergency fund in cash. While it is not a bad idea to have an emergency credit card, keeping out of debt if you can is a better idea. In Russia, we called cash emergency money “black day’ funds.” A black day is a day when everything seems to go wrong at once. One Sunday morning, a tire blows out and the fridge breaks down. With an emergency cash fund you don’t have to reach for a credit card or worry about whether the bank is open or if you have enough money in your account. Your can pay the car mechanic and the appliance repair person from your emergency fund.

There are some drawbacks to cash. Recovering stolen cash is very difficult so you have to worry a lot more about security. You also can’t do much shopping over the internet. And you need to budget your expenditures well as the only amount you have is the amount that’s in your pocket. If you can’t cover the groceries with what you have, you need to make another trip to the bank and then to the store. But these are obstacles that be overcome. After all, people used cash for centuries, when there was no such thing as a credit or debit card. And, as I said, I’ve gotten used to it myself. And the benefits of using cash for most transactions, having an emergency cash fund, and tossing out the credit or debit card except in case of emergencies.