Best checking and savings move: Ask questions
By Dana Dratch • Bankrate.com

Want to get the most out of your bank or credit union while paying the least? Stay vigilant and never stop asking questions.

With a financial landscape that features frequent bank mergers, changing rules, offerings, and rates, this is not the time to hit the snooze button on your money. Here's how to look out for No. 1 when it comes to checking and savings accounts:

The 411 on mergers
Banks have been merging and consolidating this year. Industry experts expect it to continue into 2007.

The 411 on mergers:

• If your bank is merging, treat it like you're dealing with a whole new institution. "Consumers need to be concerned about all the mergers because their banks are changing, says Linda Sherry, spokeswoman for Consumer Action. Watch for different services, different fees and different rules. "That can be confusing for consumers," she says. Start at zero and take a new look at all the services you use. Ask about pricing, fees and anything else that might be an issue for you. • Be ready to walk if you don't like what you hear. "Don't assume that specific bank is still the best place for your money," says Mark Oleson, director of the Office of Financial Success at the University of Missouri. "Shop around to confirm it will still meet your money needs."

The guess-my-rate game
Some experts believe that rates next year will be pretty much where they are this year. Others believe that normalcy will return to CDs and long-term rates will again be better than short-term rates, if you're worried your savings will be in the wrong place at the wrong time.

The guess-my-rate game:

• Keep an eye on the interest rates your money is earning. "If you're not making a good rate of return, be looking around," says Sherry. "Even though interest rates are changing so dramatically, it seems like a lot of people are making only a couple of percent on their savings." Rate watching is especially important with CDs. "You really can't go on auto-pilot in this environment," says Larry Fuschino, director of deposit pricing at Wachovia. • With savings accounts, recognize that rates can go up and down. Get a good deal, but don't let rate-swapping impair your savings. Understand "that rates are going to fluctuate," says Oleson. • Don't simply accept what you're offered, especially if you have some money in a particular institution. Shopping for a good rate on CDs? "It's not necessarily one-size-fits-all," says Fritz Elmendorf, vice president of communications for the Consumer Bankers Association. "With your own bank, if you have other relationships with the bank, it's not out of the question that you could get a rate that's better than the rack rate." • Don't park large sums of money in accounts that offer a rate of return that's less than inflation. With the exception of your emergency fund, which needs to be available at a moment's notice, you want savings vehicles that offer interest rates that beat the rate of inflation. Otherwise, "you're actually losing purchasing power," says Steven Rick, senior economist for the Credit Union National Association. • Investigate all your options. When people shop rates and accounts, they often include large and small banks. But many forget to include credit unions on their list. One big reason is they may not realize that they could qualify for membership. But, "if you live in a medium to large city, probably everyone can be a member," says Rick. So when you compare, make sure you have looked at all the places you could store that money.

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