Then, the latest economic data released shows that new jobless claims drop to the lowest level for this year, while the retail industry saw its second straight monthly sales gain after a year-long decline. Could consumers perhaps be opening their wallets again, finally ushering in much anticipated economic activity?

Increased economic activity is certainly something that we hope will come soon enough. Because only then would we be able to expect deposit interest rates to rise again. And this is the bit of not-so-pleasant news that prudent savers will have to deal with: the Federal Reserve announced after its policy meeting last Wednesday that it is standing by its decision to keep benchmark interest rates at near-zero levels while the economy remains weak. Nothing surprising in that, but still disappointing for those who are hoping to get more out of their extra funds.

Let’s check out how much further down banks cut their CD rates in response to the Fed’s pronouncement:

6-month CDs

CD rate averages for 6-month CDs dropped the lowest this week, although fortunately not that substantially. Inching down from 0.95% to 0.93%, the 6-month CD rate fell by 2 basis points and slid farther from the 1.00% mark.

12-month, 36-month, 48-month, and 60-month CDs

Averages for 1-year, 2-year, 4-year, and 5-year CD rates also fell, each by a single basis point. If you think that a 0.01% decrease in CD rate average isn’t that much, you are quite right in that, but bear in mind too that these are some of the lowest rate levels seen in years.

24-month CDs

Only the 2-year CD rate was able to hold its own this week with the average maintained at 1.72% APY.

Bank CD Rate Cuts

In response to the recent flurry of developments, not too few banks made CD rate cuts this week and while banks lowering their CD yields are not uncommon, what could be cause for worry for savers looking to maximize their deposit yields is that the banks that made substantial rate cuts this week are those banks which offer some of the most competitive, if not the top, CD rates such as Ascencia (best 6-month CD rate), UmbrellaBank.com (best 1-year CD rate), Discover Bank, Ally, and American Express Bank.

To check if your bank has perhaps bucked the trend and instead, raised their CD yields for this week, visit our CD rates page.

Here are the 8 programs that in our opinion offer the best tax filing services:

Turbo Tax
Rated: 4.5/5

This is one of the better know tax return programs out there, and offers a whole line of products from the Basic ($24.95) to the Business ($109.95) models. Each offers 5 free federal e-files and unlimited federal returns. Turbo Tax also guarantees that you will get the biggest refund you can get with them, or your money back, and will automatically collect your tax information for you and fill it out in the appropriate places in your tax return form. The feature that makes Turbo Tax our winner, however, is that you only pay when printing or filing the return, meaning you can test the product as much as you’d like before having to enter your billing information.

Prices Starts at: $24.95 and up

H&R Block TaxCut
Rated: 4.2/5

H&R Block also offers a full line of tax return software, available both online and for download. It is also free for online federal e-files, and offers a free audit protection guarantee. However, due to the fact that it is such a large company with many other aspects of its business, it is not as easy to quickly get answers to your questions from H&R Block as it is with some of the other programs offered.

Prices Starts at: $29.95 and up

TaxACT
Rated: 4/5

TaxACT’s prices are much lower than other tax software we reviewed ($17.95 for the Online Ultimate Bundle and only $39.95 for the Business Edition), but they also offered fewer products. In addition to free federal e-files, which was offered by the other programs, TaxACT also offered free state tax returns.

Prices Starts at: $12.95 and up

CompleteTax
Rated: 3.4/5

This program had a competitive rate for its Basic kit, at $14.95. Like the others, it offers free federal e-file, but only offers an online version, with no option for download or an in-the-box order. One nice feature is the chat service, that provides instant advice for users, but unfortunately, can only be accessed for a fee.

Prices Starts at: $9.95 and up

TaxSlayer
Rated: 3/5

TaxSlayer only seems to offer one product, and its website isn’t the easiest to navigate, only really providing information on the product after you start your return. That being said, it does seem to be a solid inexpensive program, and offers some great online help features such as a Help Center and a Videos section that provides instructions for the first time tax filer.

Prices Starts at: $9.95 and up

TaxBrain 1040
Rated: 2.2/5

This program emphasized that it was geared towards building you a custom tax package that suited your exact tax preparation needs, by requiring you to fill out a questionnaire before you start your return. While we aren’t sure if people will want to fill out more forms while doing their taxes, especially when they are purchasing a program designed to make it easier for them to file returns, this software offers high-quality, low-cost products and free online chat for users with questions.

Prices Starts at: $14.95 and up

OLT Online Taxes
MBT Rating: 2/5

OLT offers a pretty bare bones tax software program, with one base price for each return, which could be good for someone who just wants to do one part of their return with an online program. Otherwise, the fee can add up to more than other programs, and with less features.

Prices Starts at: $7.95 and up

Express Tax Refund
Rated: 1.8/5

This tax service may appear to have a low basic price, but for the amount of features you get with it, it could be worth it for you to spend the extra for a different program. There are also a lot f hidden fees, that are tacked on to the price as you go. This can be very annoying if you are halfway through a tax filing and then are forced to pay more for a certain feature or start over.

Prices Starts at: $29.95 and up

Find Tax Return Software That’s Right for You

While there are a variety of other programs out there, these 8 seemed to offer the most features and the most streamlined process, for the least amount of money. Of course, depending on your preferences, different programs may offer more specific features to your needs, so make sure you understand the features offered by each before you make a choice. One thing is fr certain, is any of these programs will make your life easier come tax time. Best of luck, and enjoy your rebate!

Chase Blink

Now, wait, its not quite as easy as it seems; a “blink” is the term used to describe any contactless purchase made by holding your Chase Debit Card up to a secure reader instead of swiping your card.  Blinking makes it just that much easier to use your Chase Debit, and the capability has been popping up in more and more places lately.  To qualify for the $10 cash award promotion, your card must first be enrolled in blink purchasing at chase.com/Debitblink or at a Chase branch.

To earn the $10 award you need to complete the following:

• Complete 3 blink purchases, of at least $5 per purchase

• Purchases must be made using the enrolled Chase Debit Card by December 31, 2009.

A few establishments that currently accept blink transactions are: McDonald’s, CVS, Best Buy, Duane Reade, Jack in the Box. For the full list of merchants and FAQ around blink technology click here.

Note: This offer is by invitation only so MyBankTracker.com cannot guarantee you will be excepted.

Closed for Holiday

Here is a brief list of the upcoming holiday dates on which the majority of banks most likely will be closed. This list could also be useful if you are wondering why your relatives seem to be calling you an awful lot on certain days these next few months.

• Veteran’s Day – November 11th, 2009

• Thanksgiving Day – Thursday, November 26th, 2009

• Christmas Day – December 25th, 2009

• New Year’s Day – Friday, January 1st, 2010

• Birthday of Martin Luther King, Jr. – Monday, January 18th, 2010

• “Washington’s Birthday” – Monday, February 15th, 2010

Fortunately, with advances in modern banking, having a closed branch doesn’t affect our banking plans as much as usual; for basic banking services, we can simply do our banking online from home. However, there are some services that banks will be unable to preform due to the fact that there will be no employees available; please be sure to contact your local branch if you are unsure about what services will be available on these holidays.

by 1Flatworld

Necessary Changes

However, it may be about to get even harder because there is now a 10% increase in the withholding tax rate that will last through 2010. Now this is technically not a tax increase, it just withholds more money from your paycheck while keeping your annual tax amount the same. You can think about it this way; if you were already going to receive a tax refund in California this April, then this year you will be getting a bigger one. This is something that the state will plan to do for a few years so that they can have an additional $1.7 billion in available tax revenue, “just in case.”

The state will also have the option of trying to slash that amount off their budget, but that will not be easy or likely. There will always be stiff opposition to such cuts. For example, in September, thousands of students, faculty members and employees at the 10 University of California campuses recently rallied to voice their outrage at proposed budget cuts and tuition increases.

Extra Tax Withheld by Income

* Note: This table is only for a single filing with no dependents; other situations may vary.

Holiday Spending

This new withholding rate increase could have an adverse effect on the already weakened holiday spending, so you can imagine the dismay of some retailers and consumers in the Golden State. However, it will be interesting to see the actual outcomes based on estimated increases for each person individually. For example, someone with a taxable income of $51,000 and no dependents will see about an extra $18 withheld per month. That may not seem like a drastic decrease, but that monthly amount can add up to a big pressure on spending for some, as well as a potential decrease in sales for California businesses over the important holiday season.

If you are a California resident, you should note that this change is not a tax increase and if you are not on a tight budget, it may not pose much of a problem. If you’re not a California resident, hopefully these sort of increases don’t become common practice for other states who can’t balance their budget. Nobody, especially after a year like the one we’ve just been through, want Uncle Sam dipping deeper into his or her pockets.

by word artist

Before you rush to cancel your card, however, you may want to consider a few things first:

• You can actually call your card company if your rate has been raised and speak with a customer service representative or a customer- retention specialist to find out why there was an increase.

• You might want to remember that because of how your credit score is calculated, canceling your card means you then have a higher utilization of your available credit. This would lower your score a bit and taking into account the fact that credit is harder to get, you may be put at a disadvantage if you are seeking a car loan or mortgage in the near future.

• Furthermore, there may even be the possibility that you cancel or change your card company to one that is not accepted at some of the stores where you shop.

Rewards, Balance Transfers and Fees

Sometimes you may want the rewards but just do not want to pay a fee. If you have a card that offers rewards but has an annual fee, you can try to get the fee waived. You should also look at the rewards that you do get. You may want to keep your card and accumulate miles or the one that gives you cash back. Remember that you most likely will pay annual fees for cards that give back the most. Also, you may want to transfer your balance to another card so you should be a bit careful and consider your balance transfer fee before you do this.

Now of course the major factor in your decision should be the interest rate you are paying. As noted before, there are fees for transferring a balance but there may also be a different rate for those transfers as well. There may also be different rates for cash advances if you do get them. Interestingly, when considering interest rates and fees you may find that many big credit unions are lower when compared to big banks. You should note that you would have to join the credit union first and there may not be a variety of them to choose from (there may not even be any in your area) because only a few credit unions do offer credit cards.

sfgi Promotion

SFGI message on their homepage: “On Friday, November 6th SFGI Direct will again remove the “Apply Now” button from our website. As many of you noticed in July we removed the ‘Apply Now’ button for approximately 2 months. It is our philosophy to deliver a competitive product to our clients; SFGI Direct has chosen a strategy to slow account growth by limiting the application process of new clients instead of dramatically cutting rates to loyal customers.”

Click here if you would like to open an account.

Longer Unemployment Aid

In a 98-0 vote, Senators passed H.R. 3548 which extends jobless benefits by another 14 weeks, and up to 20 weeks in areas where the unemployment rate is above 8.5%. The current unemployment rate across the country is 9.8%.

Such assistance will go a long way in states like Michigan, Nevada, Rhode Island, and California which have been hardest hit by unemployment at rates of 15.3%, 13.3%, 13.0% and 12.2% respectively as of September 2009. In these states, jobless individuals could enjoy up to 99 weeks of benefits, which average about $300 per week.

The proposed measure will apply to those whose jobless benefits will be exhausted by the end of this year, although those who have already stopped receiving checks may apply for another round.

“We did the right thing today by passing this bill and doing it in a fiscally responsible way,” said Democratic Sen. Max Baucus, who was one of the authors of the bill. “Today, we gave unemployed Americans the chance they need to get back on their feet, get through this tough time and get working again,” he added.

Tax Credit for First Time Home Buyers Extended

As an added provision to the unemployment benefits extension bill, the $8,000 tax credit for first-time home buyers has also been extended and expanded to include other groups of people other than new homeowners, as an added boost to the slowly recovering housing market.

Although previously set to expire by the end of this month, the passage of the legislation effectively extends the $8,000 tax break for first-time home buyers program to April 2010. More significantly, the newly-passed bill grants a $6,500 tax refund for homeowners who want to own a new home, provided they have lived in their current residence for five consecutive years within the past eight years.

The $10 billion program however, is limited to homes with purchase prices below $800,000. In addition, individuals who earn more than $125,000 per year, and couples who make at least $225,000 annually, are not qualified to avail of the tax credit.

Long Way to Success

These developments come after weeks of debate in the Senate which started last September, when the initial version of the proposed legislation extended benefits only to the 27 states with unemployment rates above 8.5%. Senators of states with lower unemployment rates rallied that the extension should cover all jobless workers in all states. Then Republican senators also held up the extension bill over negotiations on amendments of other bills.

But while it may have taken them quite some time, the US Senate finally pulled through in its overwhelming approval of the proposed measure. The bill now moves to the House, where it is also expected to be passed, then on to the White House for the President’s signature.

Warren Buffett Book

Low Income Housing Tax Credits: A Primer

The tax credits that Goldman Sachs and Berkshire Hathaway would receive from Fannie Mae if they win the bid are Low Income Housing Tax Credits (LIHTC), which are an incentivized subsidy by the government for companies to offer affordable housing to low income Americans. The LIHTC program was developed in 1986 as part of the Tax Reform Act (TRA86), in order to provide funding for developers who propose low-income housing projects. However, for a company like Fannie Mae, which has experienced such drastic declines in their value over the last year, these tax credits are worthless, and in fact have contributed to the companies losses each quarter as they are obligated to comply with costly, below-market rents as long as they hold the LIHTCs.

Due to these considerations, Fannie Mae has been looking for a buyer of these credits, but the US Treasury Department is loathe to authorize such as sale as it would not benefit the taxpayers who financed the huge bailout for the company earlier this year. Any increase in revenue to Fannie Mae that getting rid of these tax credits might create would be more than cancelled out by the loss in tax revenue to the federal government.

An Unlikely Alliance

The reluctance of the Treasury to allow the tax credit sale shows how a transaction that a few years ago might have never even been mentioned, in today’s economy, with so much government involvement in Wall Street, is rife with political calculations. In the past, it has been pretty standard for developers to sell off their tax credits to financial institutions that are interested in tax breaks. However, by allowing Fannie Mae to get rid of its now burdensome tax credits to Goldman Sachs, many investor are saying that this seems to show political favoritism and special treatment of one of the Wall Street giants.

This perception may be one reason why Goldman Sachs is welcoming the the involvement of Mr. Buffet, who is well respected both in Washington and on Wall Street, and will perhaps offset the bad reputation the bank has gained over the last few years. The two companies hope to buy a combined $3 billion dollars in tax credits of the deal is approved, which would be a wise investment for the companies, as LIHTCs are selling at a low of 65 cents to the dollar compared to the 95 cents to the dollar that was being offered back in 2007.

by virtualart

For retailers, business has been slow and still is. If you are a regular employee (or were, for that matter) you may have had to make do with less hours at work or worse, been laid off altogether. The value of your home or property may have plunged to unimaginable depths, that is, if you haven’t lost one to foreclosure yet. We also saw our savings interest dwindle into almost nothing. As far as this economic crisis is concerned, everyone’s got their own story to tell. The recession has become the villain in what had previously been a comfortable existence.

But guess what? Not everything about this recession has been all that bad. In fact, we may even have benefited from it in more ways than we can imagine or think of. Here are some reasons why the recession can also be viewed from a positive angle:

Mortgage Rates Went Way Down

Coupled with low real estate prices, record-low mortgage rates made it possible for home buyers to realize their goal of home ownership. Or, for those who already own a property, refinancing their mortgage and locking in to the current low rates has allowed them to take advantage of huge savings, and stash away some extra funds.

Consumers Pay More Attention to Credit Card Debt

With banks trying to generate more revenue from credit cards by raising interest rates and imposing stricter penalties, cardholders woke up and took notice of how credit card interest fees and other charges were slowly burying them in a mountain of debt. Some had to resort to debt consolidation and debt help, but that is still better than maintaining that devil-may-care attitude that consumers usually had when shopping with the plastic.

Americans have Become Better Savers

Deposit account rates may have dipped to lows previously unseen but that certainly didn’t stop individuals from realizing that spending less and saving more is vital as things will not always be as rosy as they were. Individuals have shut their wallets and have instead gone on a saving spree. From a zero percent savings rate in April 2008, it has gone up to 6.9% as of last May 2009.

Families Were able to Make do with Leaner Paychecks

In the midst of dismal economic activity, companies and business owners cancelled bonuses, cut employees’ work hours, mandated worker furloughs, or completely left them out of jobs. Whatever the case is with your household, the fact is, many have had to cope with one less paycheck or a much smaller budget. Making lifestyle changes however, while not easy, has been doable. What’s more, we’ve also discovered that special home-cooked meals can be just as appetizing as restaurant dinners, and cable TV may be overrated.

Bank Customers are More Savvy in Shopping for Rates

Where before a rate difference of 0.50% wouldn’t have mattered all that much when rates were in the vicinity of 5% to 6%, these days that would amount to a lot, considering how low interest rates have slid down to. Its a good thing that consumers have become more adept at finding better savings deals, CD rates, and account opening bonuses.

If there’s anything good that can be said about the recession, it’s that it has helped us develop good savings habits, sensible spending practices, and positive attitudes. If we can somehow maintain all these changes long after this economic downturn is over, we would continue getting the most out of our savings, and building up a decent nest egg for the future.