Banks are offering very little in the way of interest and yet are still vying for the consumers money through the way of fees. One way of inciting people to save would be to offer a greater interest rate. To get the best interest rates for certificates of deposit, you must have large deposits. If you are saving for a long term goal such as a down payment, college savings or other life event, then look at savings bonds, especially if you have more than five years until your goal. Five year CDs all pay less than the current amount that I bonds pay and the minimum for an I bond is $25 for an online investment and $50 for a paper bond. The drawback to this is that the limit for savings is $5,000 per savings account per year. This helps if people want to accrue a laddered approach to savings.

To get Americans to save, raising the interest rates would be a good start – not everyone likes the risk of the stock market and by saving money this would add some security to the money that people have. When your money will only earn 2% (at the most) on a $10,000 deposit it really isn’t a great encouragement to save, if you weren’t in the saving mode. Where do people put money if earning a tiny amount of interest isn’t incentive enough to save?

This could be where we are now savers, those who are truly interested in saving will save but those who need that extra push or want a secure investment for their liquid assets would like to know that saving is really worth it and not just a waste of time.

“Coupon clipping for the millennium isn’t just for detergent and cereal. Retailers of all stripes, from Walgreens to Neiman Marcus, have latched onto the coupon to entice consumers to spend. And the Internet and mobile devices are making coupons more widely available.”

Coupons to some have seemed gauche as though by using one they couldn’t afford an item without it. What if someone couldn’t afford an item without a coupon. IF it’s a big ticket item then that makes a difference. For something that is less expensive, such as personal hygiene products and household goods why not save money on items you regularly buy.

The coupon curmudgeons will say that they don’t have enough time to clip coupons, but ask the same person if he/she would pass by a $10 bill lying on the ground. Most wouldn’t pass by a 10 dollars. Using multiple coupons could save you that much if not more depending on the type of purchase you are making.

If you don’t have to spend an extraordinary amount of time getting coupons or are searching hours and hours finding a usable coupon then it is definitely worth it. I scan through neighborhood mailers and see if there are coupons for places that I would actually use, otherwise, if it is something that I definitely won’t use, the coupon is deleted or goes into the recycling bin.

Though coupons had fallen out of favor over the past decade and a half, for some truly frugal, using coupons has been a part of their regular shopping and money management.

Lawmakers are finally listening to their constituents about overdraft fees.

Social Networking and other forms of new media are definitely speaking to those who are making laws.

On Capitol Hill, lawmakers are working on bills that would force banks to curb and better disclose those fees. FDIC chief Sheila Bair has lately become a more vocal critic of overdraft fees, calling them “usurious” during a speech last month.

Separately, the Federal Reserve is working on new rules, which could be ready by year’s end, to prevent banks from automatically enrolling customers in overdraft protection programs without their knowledge.

Anyone who has ever tried to use a gift card with less money on it than they thought understands the concept of not having enough money to pay for their purchase. Why consumers should be charged a fee to pay for an item that they “can’t afford” is beyond me.

When overdraft fees are being called “usurious fees” which is what check cashing fees have also been referred to, lawmakers have actually taken notice.

Consider how much people can make in unregulated fees – consider the as seen on tv products that you can now find at hardware stores instead of ordering from television. The same product which might cost $19.99 plus shipping and handling will cost less if you just pay the tax at the store. Occasionally, the item might be on sale and you will save even more. Handling fees are often subjective. Just as overdraft fees are subjective and allowing consumers to opt out of overdraft protection programs really gives consumers freedom to choose.

“Consumers remain quite apprehensive about the short-term outlook and their incomes,” said Lynn Franco, director of the Conference Board Consumer Research Center. “With the holiday season quickly approaching, this is not very encouraging news.”

So the question is… How are you feeling about spending money for Christmas?

Last Christmas there were fewer new “hot” toys and gadgets and this has also trickled down to this year. People are still concerned about employment and also the tightened credit market.

The majority of retailers go into the black during the Christmas season. Since people  have less to spend and tighter credit restrictions, this consumer might end up being royalty again.

How will your spending habits differ this year?

If you haven’t been working or have had a salary cut then you are definitely in the low consumer confidence area. Even if you have a steady job and haven’t had a pay cut, this doesn’t mean that this is the time to spend recklessly. Start budgeting now and if you can, start making Christmas gifts.

Consumer confidence had increased, but that was short lived and due to cash for clunkers. As the holidays roll around, people may spend a little more than usual, but they may not spend as much as they did two or three years ago.

At a time when people are paying down their credit, some consumers are turning to their debit cards. When they overspend on their debit cards, banks make money from overdraft fees.

This year alone, banks are expected to bring in $27 billion by covering overdrafts on checking accounts, typically on debit card purchases or checks that exceed a customer’s balance.

When you hit your limit on a credit card, your charge may be denied. When you hit your limit on a debit card, you are hit with fees for spending more than is in your account.

To avoid fees, if you bank doesn’t enforce a minimum amount, create your own minimum, so instead of your actual balance at zero, consider your minimum balance as $200 or so, just enough to make some small purchases and won’t have to pay a fee.

Overdraft protection fees are great sources of income for banks. When ATMs and debit cards were first created, users who didn’t have enough money had their requests denied. Now since some cards are associated with Visa and MasterCard there is the option to charge something using the same card.

According to the F.D.I.C. study, a $27 overdraft fee that a customer repays in two weeks on a $20 debit purchase would incur an annual percentage rate of 3,520 percent. By contrast, penalty interest rates on credit cards generally run about 30 percent.

Thirty percent! No one would want to pay 30% for a charge, but overdraft fees may be as high as $35 for each charge.

Ideally, if you don’t have the money in the account, then a bank should not allow the transaction to go through. This isn’t what happens. Have a debit card? Find out about your bank’s overdraft policy. Ask whether or not you will be automatically charged if your balance falls below a certain amount. If so, then start using cash for small purchases if they are the ones that make you spend then don’t make any small purchases. Knowing that the overdraft fee annual percentage rate exceeds 3000% makes it more difficult to just use a debit card with reckless abandon. A credit card would be better in some instances, especially if you know you can pay the amount within a month.