On August 20, 2009, two provisions of the recent Credit Card Accountability, Responsibility, and Disclosure Act aka Credit CARD act, will take effect.  Most of the remaining provisions of the Act will take effect in February, 2010.

First, credit card providers must give card holders 45 days notice (increased from 15 days) before changing a customer's fixed interest rate.  Since no advance notice is required for variable rates tied to an index, providers are canceling fixed rates and replacing them with variable rates.  Watch your mail carefully for any changes to your interest rate.

Second, the period between mailing the monthly statement and the payment due date has been increased from 14 to 21 days, thus permitting consumers more time to pay their bills without incurring finance charges.
 
For more money coaching tips and ideas regarding credit cards, make an appointment with Diane Nissen Friedman by phone (201)447-1137 or email today.

Money market accounts and money market funds are two different types of accounts.

Money market accounts or high yield money market accounts are savings accounts offered by financial institutions and are FDIC insured (see July's newsletter for a discussion of the FDIC and its insurance program).  There are usually restrictions on the account, such as a limited number of withdrawals per month and minimum opening balance.

Money market funds are mutual funds and are not FDIC insured. Restrictions, like those mentioned above, may apply on the account, and a consumer can potentially lose a portion of their principle. They may generate a higher interest rate than a money market account. Their perceived safety was tested last September, when the net assets of the Reserve Primary Fund, a money market mutual fund, fell below a $1 per share.

Visit: Securities and Exchange for details.