It’s surprisingly easy to get a lower interest rate on your credit card. My husband had an American Express card with a fairly high interest rate and, last week, he decided to ask for a lower rate. Yep, all he had to do was ask and American Express gave him a better deal.

There were a few small complications in the matter: he had a credit card with rewards points and there simply wasn’t a lower interest rate that American Express could give him on that card. But the company was more than happy to switch my husband over to another card with a much lower interest rate if he was willing to give up his rewards points. He thought it over and, yes, it was definitely a better proposition.

Credit card companies don’t ever offer to lower your interest rate out of the blue. Even if you improve your credit significantly, they’ll leave your interest rate alone because they make more money if that interest rate is higher. But that doesn’t mean that American Express, Visa and all the rest aren’t willing to make you a better deal. You just have to step up and ask.

It is easier if you have a little bit of leverage, of course. The best leverage is being able to tell your card’s representative that you’ve been on time with every payment. Being able to tell your credit card company about a great deal you’ve just received from one of their competitors doesn’t hurt, either. If you’re considering taking your business elsewhere, most credit card companies will do what it takes to keep your account. Occasionally, they might call your bluff though — but there are plenty of offers out there with zero-interest transfers if you decide to go through with changing cards.

The important thing to do is call up your credit card company and ask. Ask for a lower interest rate, ask to have a fee refunded, ask for a better deal. After all, the worse they can do is say, ‘no.’ The best they can do is significantly reduce the money you’ll end up paying them. This tactic can be applied (with varying degrees of success) to other credit situations. Your mortgage lender may not be willing to negotiate on the amount you pay but if you’re having trouble, as so many people are, they might be able to find some sort of solution. But if you don’t ask, all you have to look forward to is struggling quietly; if you don’t talk to the representative in charge of your account, you can’t take advantage of policies that afford companies a little leniency when it comes to good customers.

People looking to build and grow their money are finding it a bit difficult in the current American market. The stock market is more volatile than ever, and the impacts of those ups and downs don’t just affect our investment portfolios, but how much we pay for bread, milk, and gas every day. Investing the money we work so hard to earn in something like that is a frightening prospect, not to mention hard to do in the first place. Saving up enough money to buy stocks might take people a lot of time and effort, and when they finally have enough to buy a stock, it might plummet overnight and lose that person all their money.

While investments in stocks and international markets might be an option for people with a bit more “extra” cash lying about, most of us are saving a few dollars at a time, if at all. For people like us, these funds need to stay at least partially liquid (meaning we can spend it if we need to). We can’t wait for our CD to mature when emergencies occur suddenly and without warning. What then, is the solution?

A good ol’ savings account.

But not just any savings account. Online savings accounts, FDIC insured and high yield with limited to no prerequisites. These accounts are usually with large banks that can afford to give you much higher interest rates than so called “brick-and-mortar” institutions. But how do they work, are they safe, and where do you find them?

Is This a Scam?

Usually the first assumption made by jaded and cynical people like myself is that this is too good to be true. How can banks offer such high yield accounts with almost no minimums, and do it online? There’s a catch right? Upon further investigation, I learned there was nothing to fear. As a matter of fact, the more fine print I read, the more excited I got.

The banks that are offering these kinds of accounts are large banks, usually with very diversified interests in American markets. ING, HSBC, and Capital One to name a few. These banks have such a large asset base, they can afford to offer such high interest rates. Here is the current rundown of some online savings accounts:

• HSBC - 3.05%, no minimum balance, no fees
• E*Trade - 3.01%, no minimum balance, no fees
• ING Direct - 3.00%, no minimum balance, no fees
• Emigrant Direct - 2.75%, no minimum balance, no fees
• Countrywide Bank - 4.05%, $10,000 minimum balance, no fees
• Capitol One - 3.75%, $10,000 minimum balance, no fees

Is It Safe?

One of the first things you should look for when shopping for online savings accounts is the FDIC seal on the website. This is extremely important, as this delineates a real bank from an uninsured investment firm, or even worse, an outright scam. FDIC is insurance for your money, backed by the Federal Government. It gives you insurance on up to $100,000 for a deposit account in your name. More on FDIC insurance later.

You might ask, what about security? Most of these websites are very secure, with a lot of different password requirements. Also, in order to open one of these accounts, you will need an existing checking account at an existing brick and mortar bank. The online banks assume that your identity has been verified at your existing bank already, otherwise you wouldn’t have a checking account. In order to verify your checking account, the online bank will make two small deposits into it (a few cents each). You then need to respond back to the online bank with the exact amounts of the deposits. This is how they know your account is active and in your control (don’t get excited, they take the money back).

Sign Me Up!

Sound good to you? Shop around and see which account works best for your needs. Keep in mind the rates are variable, which means that as the markets change, so can your interest rate. Keep up to date on the latest offers so you don’t miss out.