Many people believe that searching endlessly for a small percentage increase in a savings account of some sort, or a bank CD, is the key to building up your wealth in a significant manner. This is unfortunately not true, and depending on your income bracket, isn’t worth the time doing so.

When I mention not being worth your time, by that I mean when people move their money in and out of accounts as soon as a better deal arises, making it a time-consuming effort to track all the changes, as well as making the new deposit and transaction.

By far the most important part of any savings strategy is to make a simple plan, work the plan, and make few adjustments along the way.

This breaks down to finding the best interest rate and looking at the fee structure which could eat into your capital if you don’t manage your account well.

Once you find a solid interest rate, then it’s a matter of working your plan over and over again on a monthly basis. That usually means putting money faithfully into an account to build up a financial safety net, and/or build up a nest egg for retirement.

Just like people who think they’re players in the stock market when they attempt to time the market and in fact, make it look like “they’re a player in the stock market.” In other words, they are trying to impress people, not really build their wealth.

The truth is the majority of savings and other investing strategies should be fairly boring, with nothing much happening over a period of time, other than general fluctuation which don’t mean that much one way or another.

As far as the time factor, if you’re not making some serious money when you spend time transferring funds to a new account because of a better interest rate or introductory offer, it’s just not worth the time. You would need many thousands of dollars to justify it, and even then it would have to be significant enough to pay you for the time you’re spending doing it. Only you can determine if it’s worth it or not.

I’m not saying there won’t be an occasional time to do this, but it should be a higer enough rate to make a difference in your savings, and of course there shouldn’t be any fees for early withdrawal or some other penalty if you’re hunting for the highest interest rates at all times.

When it comes right down to it, consistency concerning making your deposits over a long period of time will outperform those moving in and out of the market, no matter what the investment is.

An even stronger benefit is the mindset you’re developing which will be your strongest financial asset as you work the best ways to build your wealth within your risk tolerance. Sticking to a well thought out plan is by far the best and safest way to save and build up your capital.

Now that economic reality has hit many of us, and we’re scrambling for places to put our money which offer good interest rates and rewards, banks and financial institutions like U.S. Bancorp are responding to the new trend of cutting back on spending and putting more of our money into savings.

To that end U.S. Banccorp is offering an incentive of $50 in the form of a Visa gift card for customers to deposit a minimum of $1,000 into a special savings account created for that purpose. Another part of the deal is customers must agree to transfer funds to their savings from their checking account on a monthly basis.

Customers who participate in the savings account with U.S. Bancorp, which launches in December 2009, will also receive another $50 if they maintain a balance of at least $1,000 for a twelve-month period.

This is of course a great deal. No matter what the actual interest rates offered in the program are, you already receive a 10 percent return on your money guaranteed if you keep the $1,000 in the account for a year. Not bad at all. Add to that the interest you get and it’s a super deal in these difficult times, even if the 10 percent is offered in the form of two $50 gift cards.

Another good service being offered to help us save by U.S. Bancorp, along with other banks, it to give customers the option of having an automatic transer fo $1 from their checking to their savings each time they use their debit card; a very good service for those who have trouble putting money away for savings, or always forget about it.

This is a win/win for everyone involved, as consumers want to put away more money, and offering reward programs is a good incentive to get people to participate in that. Automating the process is also another proven method to help us save, and that should be a great service to offer while consumers continue to focus on the need to build up a nest egg to financially defend against the tough economic conditons that exist now, and in preparation for the long haul and the uncertainty concerning keeping a job will continue for some time.

Keep your eyes open for deals like the one offered by U.S. Bancorp, as not only does it help you build up a good nest egg to protect in times of trouble, but pays you a significant amount that is definitely worth the time and effort to take advantage of.

WTDirect is among the top five percent of U.S. banks for savings rates, and they even give you a chance to test drive the account with no risk to yourself.

At the time of this writing, opening a savings account with WTDirect gives you a return of 1.66 APY for the first two months no matter how much you put in the account to begin with. Once that two-month period is over, you then must maintain a minimum of $10,000 in the account to get the highest savings rate.

That’s a nice feature because a number of banks bring down the interest rate in a savings account as the account gets bigger.

There is also no restrictions on needing have a checking account with the company in order to have a savings account with a higher interest rate. Another nice feature is there is no minimum amount needed to open or maintain an account, and no fees regardless of how much money you have in it.

Also included is the current FDIC guarantee of up to $250,000 for your savings. As with all U.S. FDIC-guaranteed accounts, that will revert back to $100,000 as of January 1, 2014.

What’s nice about this for savers, depending on how you like to do your banking business, is this is one of those built-in savings accounts which can work good for those not concerned over moving their money in and out of an account. For two months you can get a good return with no minimum amount in the account, and no fees.

And if you like your experience, and have $10,000 available, you can always just keep your money in the WTDirect savings account if you choose to in order to get the higher interest rate.

You are also allowed to transfer any of your funds between your WTDirect savings account and other financial institutions you use; something not all banks allow.

With the names sounding so similar, a money market account and a money market fund can be confusing at times to many people, and considered a different name for the same investment vehicle, when in reality they’re very different in spite of similar sounding names.

For a money market account, this is a savings account banks or credit unions will offer to their customers, where the difference is it’ll have a higher interest rate based on higher minimum balance requirements than a passbook savings account would, which usually has no minimum balance requirements.

A money market account’s funds will also be backed up by the Federal Deposit Insurance Corporation (FDIC), for up to $250,000 at this time, which could be brought back down to the normal $100,000, once the temporary higher protection may be lifted.

Another element of the money market account is you can only make up to six withdrawals a month, and in some cases also have check writing privileges of three a month for the account. Fees can be applied if you go beyond the limitations of the terms of agreement, so they should be read and understood so you aren’t charged unnecessary fees.

If you belong to a credit union, your capital in a money market account would be protected by the National Credit Union Administration, which is also a federal agency.

A money market fund on the other hand is a mutual fund which invests in short-term securities like U.S.Treasuries, commercial paper and CDs, among a number of others.

Although a money market fund has no guarantees for you capital, they rarely fall below their net asset value, although a recent case happened when it did, when Lehman Brothers collapsed last year and people lost money in their money market fund accounts. This is extremely rare, but it can happen.

Of course the slightly higher risk comes from slightly better returns.

Either one of these accounts should be used to place your backup capital for emergencies, where you can get almost immediate access to your money.

The trade-off between the two is a little less interest with absolute guarantee for your money in a money market bank account, while the money market fund will normally give you a better return with a little more risk, and no guarantee of your money.

After declaring bankruptcy, GMAC has re-branded itself as Ally bank, and in efforts to generate new customers, is offering high yield savings account with a rate of 1.73 percent, and an APY of 1.75 percent, as of this writing.

There are several other features of the High Yield Savings Account at Ally Bank which also make it attractive:

• You can open an account with $0
• There are no minimum balances required
• Interest is compounded daily
• All accounts are insured by the FDIC
• No monthly fees

Do remember that the no monthly fees is based on usual practices. If you exceed 6 withdrawals or transfers within a statement cycle, you would be charged $10, and if a deposit item is returned, there is a $7.50 fee. Don’t be put off by the 6 withdrawal or transfer rule, that’s actually mandated by federal law, and all savings accounts have it.

But as far as minimum balances and normal use of the savings account, there are no hidden fees, which can give you peace of mind in contrast to other banks’ High Yield Savings Accounts which many times penalize if you drop below a required amount.

In contrast to most other large banks, this is a great interest rate and deal, as I couldn’t find a better savings rate for a no-minimum bank in America.

Several decades ago saving money was a bit more simple than it is today. At one time people simply worked to pay their bills and save money for ….well whatever. While it is certainly necessary to save money for any and all expenses, the strategy you use to save money can make the difference between financial security and just getting by. In today’s world it is not only recommended but almost necessary to have several different savings accounts to fund various expenses. You should have a well padded emergency fund, retirement savings and maybe even a rainy day fund. In addition to these standard savings accounts, you should also consider having an account for reoccurring expenses. Here is how to get started.

• Determine what reoccurring expenses you have- Most people budget for monthly expenses with “extra” money going into savings. Unfortunately we all have regular reoccurring expenses that we end up paying out of savings that could have been budgeted for throughout the year. Sit down and make a list of things like car insurance, homeowners insurance, taxes, annual vacations and gifts for special events such as birthdays, anniversaries and holidays. These expenses may come once a year, semi annually or quarterly.

• Make a plan- Once you know what reoccurring expenses you have including the amount and when they are due you can then determine how much money you have to set aside each month to cover these expenses. With that number in mind you now know how much you have to save each month in order to pay your reoccurring expenses when they are due.

• Open a separate account for reoccurring expenses- The whole point of saving for reoccurring expenses is to avoid using your other savings to cover the expense. With that in mind it is a good idea to open and maintain a separate account to avoid using this money for other expenses that pop up throughout the year. Many people find that online savings accounts are convenient for reoccurring expenses due to the convenience and availability of funds. You can easily set up a direct deposit into your savings account to avoid the hassle of manually depositing money (thus avoiding the temptation to use that money for other expenses) while reaping the benefits of a FDIC insured bank that offers a higher than normal interest rate. Many online savings accounts do not require a minimum deposit and while they are accessible they are not too accessible where you would have instant access to the cash should you want to use it for something else.

Some people may think that multiple savings accounts is simply a waste of time and requires more energy than it is worth to maintain. In reality by having separate accounts for specific goals you are better able to stay organized and track your progress to ensure you are on target for financial goals.

Savings accounts can be used for both short term and long term savings goals, although you may need to have more than one account in order to benefit most from interest rates and account features. Before shopping for a savings account, it’s important that you consider how often you’ll need to access the money in the account.

Certificate of Deposit: If you can commit to saving the money for a long period of time, you should choose a high interest certificate of deposit. CDs offer higher interest rates the longer you commit to saving, but most will charge you a penalty if you withdraw the money before the savings term has been reached. If you think you will need some or all of your money before the CD reaches maturity, you should not tie up all of your money into a certificate of deposit.

Money Market Account: Money markets offer higher interest savings than a traditional savings account and allow you to write a few checks each month or quarter. If you write more checks, there are fees associated with using the money. A money market is a good idea for savings that you only plan to access once in awhile, rather than a savings account that simply holds your money until you need it for every other purchase or expense.

Savings Accounts: Typically a savings account allows unlimited, fee-free access to the money deposited, and you earn interest based on how much you have saved.

There are 5 questions you should ask before opening a savings account to ensure you are selecting the right account:

1. How much interest is paid and how is it compounded? Find out what the annual percentage yield (APY) is. You want to find an account with the highest possible APY so you can compare accounts accurately between different banks.

2. Can I withdraw money whenever I want or is there a penalty for withdrawing money before a certain period?

3. Am I limited to making a certain number of withdrawals per month? How many can I make and what are the fees if I need to make more withdrawals than allowed?

4. Where are the local bank branches located? This is important to know if you plan on using your ATM card to withdraw money from your bank account. Find out what fees are associated with using your ATM card at other bank ATMs.

5. Are their any special deals or offers for opening an account right now? Banks regularly offer bonuses or rewards or incentives to encourage people to open accounts with their institution. Find out if the bank is offering anything at the moment and compare to what other banks are offering to determine which is the better deal.

IRAs were created in 1974. They were established to give individuals the ability to save money in retirement accounts or trusts in order to benefit themselves or a chosen beneficiary. There are strict guidelines for operating an IRA, as well as who can serve as a custodian of an IRA which are governed by Sec. 408. Self-directed IRA’s are accounts that the custodian agrees to give the taxpayer greater control over their investment decisions. Sometimes, self-directed IRAs are referred to as “real estate IRAs”, but they can contain any investment allowed under Sec 408, including real estate, options on real estate, private placements, operating businesses, notes, and investment partnerships. The percentage of self-directed IRAs is small compared to the total number of IRAs existing.

Why Go With a Self-Directed IRA?

IRAs have always appealed to individuals who are not as comfortable with the common ups and downs of the stock market. Both Traditional and Roth IRAs are usually invested in a combination of stocks, bonds and mutual funds – so the self-directed IRA gives individuals another option to avoid the ups and downs of stock market investing and provides more control in how their IRA is invested. You can hold a self-directed IRA as either a Traditional or Roth IRA, which means the tax laws of the savings option you select will apply to your self-directed IRA. There are rules governing how assets are purchased (must be considered arm’s length transactions) and what can be purchased in order to qualify a self-directed IRA for IRA treatment – refer to Sec. 4975 to be sure the stipulations and requirements are met to avoid tax penalties.

With the ability to choose your own investment options in a self-directed IRA, you can clearly diversify your IRA investment. When setting up a self-directed IRA as a Roth IRA, you are allowed tax-free growth of the assets, which gives potentially larger returns than what is traditionally possible with retirement assets.

What Challenges Do Self-Directed IRA’s present?

Whenever you make a transaction, you must consider whether or not the transaction meets the requirements of a self-directed IRA. A custodian is also not allowed to give advice regarding investments. Setting up and managing a self-directed IRA requires more energy and is more complicated than other types of retirement investments.

If you are considering a self-directed IRA, you can minimize your risk by transferring a portion of another IRA fund into the new self-directed IRA. The risk is then limited to just that money. If investing in a business through a self-directed IRA, someone other than the owner of the IRA must run the business.

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When you open an Ultimate Savings Account through Citibank with a minimum deposit of $1000, you’ll receive $25. This promotional offer is available until January 31, 2009. You do have to maintain the $1,000 minimum balance for 3 consecutive months to earn the $25 bonus. You can apply online or by calling 1-877-695-9400 (mention code CYA8 to get the promotion) and it is only available for first-time Citibank deposit account customers.

While $25 is not that much, if you’re looking for a reasonable yield interest savings anyway, the Citibank Ultimate Savings Account is a good option with a current yield of 2.75% APY – and the $25 is a nice bonus. There are no monthly maintenance fees, which helps you keep more of the money you earn through interest and your own deposit amounts.

The Ultimate Savings Account has what some people consider to be a low ACH outbound transfer limit of $2,000 per day and $10,000 per month. If this is a problem for you, you can work around it by opening another Citibank savings or money market account and moving money through internal transfers before doing the ACH transfer. Alternatively, if you initiate the ACH transfer from the other bank you’re looking to move the money to – you are not bound by Citibank limitations for ACH transfers.

It’s possible that opening a Citibank account will result in a hard pull of your credit report – although some people have reported a new policy by Citi that does not require hard credit pulls on deposit accounts without overdraft protection. If a hard credit pull is something that concerns you, verify the policy with Citibank before filling out the account application.

The Small Print:

• $25 offer available only to first-time Citibank deposit account customers
• $25 credited to account 120 days from the date you satisfy the offer terms (maintaining a $1,000 minimum for 3 consecutive months upon opening the account)
• $25 bonus payment will be included in the report to IRS regarding amount of interest earned in the year that it is earned.