MONEY AND PERSONAL FINANCE

Moneywise

High-return CDs

In spite of the Fed's rate cuts, interest rates on CDs haven't changed as much as they might have. Still, you could do better with one of these. All are federally insured:

Countrywide Bank, (866) 846-4480, 5.65 percent for one year, 5.41 percent for six months, and 5.25 for five years.

UmbrellaBank.com, (866) 242-0065, 5.20 for a six-month CD.

Mutual Bank, (877) 637-3111, 5.20 percent on a two-year CD.

Eastern Savings Bank (800) 787-7372, 5.35 percent interest for five years.

New ways to save your tax refund

When the average income tax refund for 2007 is calculated, it will be about $2,500. Whether you file online or on paper, you now have the opportunity to split your refund so it will automatically be sent to three different places, like an investment or checking account.

When a big deposit shows up in a checking account balance, most of it will probably be spent, often not wisely.

You can designate an amount to be sent to a savings account, an IRA, education savings, or a health savings account. To deposit to more than one account, fill out Form 8888, available at www.irs.gov.

Finance: Nixing stocks

One professor of finance has this controversial advice: Unless you are wealthy and changes in the stock market won't affect your future standard of living, stay away from stocks. Zvi Bodie, professor of finance at Boston University, says risk-free investments are better.

He recommends U.S. Treasury inflation-protected securities (TIPS), which can protect your money from inflation for 20 years. Series I bonds protect from inflation for 30 years.

He puts Series I bonds in his taxable accounts because taxes are deferred until they are cashed in. With TIPS in your retirement account, you steer clear of paying taxes on accrued interest.

Credit cards that offer rewards have an upside, downside

Credit-card companies are offering rewards for your loyalty. You can get 1 percent, 3 percent, and in some cases a 5 percent reward for certain kinds of purchases.

Cards that offer more rewards points have higher interest rates and may have annual fees. But using them means you can get closer to earning your airplane ticket or TV. That's the upside. If you don't pay the entire bill each month, however, you'll be charged interest at 15 percent or more. If you pay late, you will be charged a $35 late fee, and your interest rate could skyrocket. That's the downside.

Those who are sure they can pay in full each month and who are willing to study various card offers can still do very well. By knowing which types of retail outlets are partnered with a certain credit card, they can buy for less or get maximum points.

One card user has notes on each of four cards which say things like gas, groceries, and home improvement.

Some cards have limits. The Discover Gas Card pays 5 percent cash back on gas and car maintenance, but only on purchases worth $1,200 a year. If you buy something else with the card, they pay 1 percent but the purchase still counts against the $1,200 limit.

The Citi Driver's Edge card rebates 6 percent of any purchases you make. The rebate is good toward a new car, but only on purchases made within the last 12 months.

Many kinds of cards are available, but customers need to read and understand the terms of card agreements.

Creating your personal cash flow plan

Here are a few tips for keeping your financial world on track. Check them out so you won't run short before the new money comes in.

• Make a master list of expenses that don't occur monthly. Example: January, pay off Christmas bills; February, two kids' birthdays; March, car insurance; April, income tax; May, property tax; July, vacation; August, fire insurance. Don't let seasonal bills come as an unpleasant surprise. Add up annual and semi-annual expenses and deposit one-twelfth of the total into a special savings account each month.
  
  
• Keep required payments low. If you buy a car, get a simple interest loan for a longer period of time. When cash flow is tight, pay the minimum. When it isn't, pay more or make an extra payment.
  
  
• Avoid charging to credit cards for big-ticket items such as furniture. Save something each month toward the purchase and buy for cash.
  
  
• Keep your emergency fund intact and with enough money for several months expenses. If it's absolutely necessary to borrow from it, make an agreement with yourself to pay back a certain part of the borrowed money each month.

Inside secrets:

Getting Past Computer Prompts to Talk to a Person

If you are anxious to talk to a human being instead of working your way through a call center, visit gethuman.com/us/. It gives shortcuts for bypassing automated operators.

The Web site offers specific phone numbers and instructions on how to reach a person. It's updated weekly, but numbers can change without notice.

© 2015 TLC Magazine Online, Inc.