When shopping for electronics and big-ticket items such as cameras, TVs and other appliances, we are often faced with strong and seemingly sensible encouragement from the salesman to take out an extended warranty on the product. After all, you’re paying a lot for this advanced technological gadget – don’t you want to protect your investment?

According to Consumer Reports extended warranties are not only not necessary, they are probably money wasted. Most of the products they have tracked have not needed major repairs in the two years since they were purchased and often the cost of the extended warranty is more than paying for a repair, if one is ever needed.

Retailers advise you to take the warranties because they get a large percentage of the price of the warranty. In fact, they make more money on extended warranties than they do on the products they are selling the warranties on.

According to Consumer Reports:

For the consumer, extended warranties are notoriously bad deals because:

* Products seldom break within the extended-warranty window (typically around three years), our data show.

* When electronics and appliances do break, the repair often costs about the same as the cost of the warranty.

Read the rest of the article at Consumer Reports

With the Christmas shopping season nearly upon us, we will be out and about, scrambling to buy gifts for loved ones. According to Amar Cheema, assistant professor of marketing at the Olin School of Business, Washington University in St. Louis, it’s also the season when people are mostly likely to buy self-indulgent gifts for themselves.

Christmas sales, rebate offers and easy credit (sometimes with no money down and 0% interest for a specified term) all give the shopper incentives to buy that big ticket item he or she has been longing for. But only 40% of consumers actually send in those rebate forms and easy credit can encourage consumers to spend more than they can afford.

But according to Cheema, these discounts are not as money-saving as they seem and you are often better off waiting until the post-holiday sales when retailers cut prices to reduce inventories to buy yourself that large-screen plasma TV.

Read the article at NEWSWISE

Acording to Kelli B. Grant, there is a best time to buy everything. For instance, we all know that buying clothing at the end of the season when it goes on clearance will save you money and buying holiday items after the holiday allows you to take advantage of dramatic price slashes (as long as you are the kind of consumer who can plan a year in advance).

In addition to these types of savings, there are also best times to get better prices on airfares, appliances, cars, computers, even tickets for Broadway shows and baby clothes.

For the absolute best time to buy everything, see the article at Smart Money.

The Best Time to Buy Everything

Bank fees related to ATMs and checking accounts continue to rise and cost consumers billions of dollars per year.

Since banks started imposing fees on ATM transactions the fees have risen and now stand at an average of $1.64 per transaction. Similarly, banks have increased punitive fees for bounced checks.

The blame is being put on consumers’ reluctance to take out new loans in a period of high interest rates. The slowdown in investing leaves banks to find new ways to make money.

Banks are expected to reap $55 billion this year from bank fees alone.

Don’t let them make that money off you. Minimize use of ATMs, or at least ones belonging to other banks or networks. Most banks don’t charge a fee if you use the ATM at your own bank. If you need cash consider cashing a check at the teller window (although, there are a few banks that charge for using teller services too). Taking cash back during a debit card purchase at the store is another way to get pocket money out of your account without paying a fee. Guard against bounced check fees by paying scrupulous attention to your account balance and recording every debit card purchase and ATM withdrawal. Often it is one of those forgotten transactions that can cause the miscalculation that leads to a bounced check.

There are still banks that offer transactions without fees or lower fees. Check around and be prepared to change accounts if you find a better deal.