The Best Credit Cards and Financial Services
Our picks for excellence from credit cards to checking accounts to college-savings plans.
From Kiplinger's Personal Finance magazine, November 2007
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Credit cards
BEST CASH-REBATE CARD
American Express Blue Cash
Earn 1% on everyday spending -- gas, grocery and drugstore purchases -- until you reach $6,500, after which you earn 5%.
BEST LOW-RATE CARD
Simmons First National Bank
For consumers with excellent credit, Simmons's no-fee Platinum Visa comes with a fixed rate of 7.25%.
BEST AIRLINE-MILES CARD
Citi Premier Pass Elite
The card costs $75 per year, but it takes only 20,000 points to earn a domestic ticket. And points are easy to acquire.
BEST TRAVEL CARD
Capital One Platinum Plus Mastercard
Capital One doesn't pass on the 1% currency-conversion fee from MasterCard.
GASOLINE CARD
BP Rewards Visa
Earn 5% on gas you buy at BP stations, plus 2% on airline tickets, lodging and rental cars.
Financial services
BEST CHECKING ACCOUNT
ING's Electric Orange
This account pays a minimum 3.5% interest rate and gives you a MasterCard debit card plus free online bill-paying. Send an electronic check or fill out a paper check online that ING will send for you. Bonus: no minimum balance and no fees except for special services, such as stopping a payment.
BEST COLLEGE-SAVINGS FUND
State 529 plans
These plans give you a choice of investments and let your savings grow tax-deferred. You avoid federal tax on distributions if you use the money for college expenses. More than half the states also give you a state-tax deduction or other tax benefit. Plus, 529s set a high ceiling on contributions and let families of any income level participate. If your state offers an income-tax deduction for 529 contributions, go with an in-state plan.
OUR FAVORITE 529 PLANS
If your state does not offer an income-tax deduction, choose one of Kiplinger's top five.
Utah Educational Savings Plan Trust for rock-bottom fees
- Maryland College Investment Plan for best fund portfolios
- Michigan Educational Savings Program for conservative investments
- College Savings Plan of Nebraska for diversified investment choices
- Virginia CollegeAmerica for the best adviser-sold plan
Learn more about the best 529 college-savings plans.
STUDENT LOANS
Federal Stafford Loans
Available to any student who applies for financial aid, these loans carry a fixed interest rate of 6.8% (less after July 2008 if you have financial need) and let students borrow up to $3,500 for their freshman year, $4,500 for their sophomore year, and up to $5,500 a year as juniors and seniors. A student can defer repayment until six months after graduation. If he or she qualifies for financial aid, the feds will subsidize the interest until the loans come due.
Learn more about getting the best deals on your student loans.
BEST ID-THEFT PREVENTION
Cut down junk mail
Thwart mail snatchers by cutting the flow of junk mail. For a $1 fee, the Direct Marketing Association (www.dmaconsumers.org) will remove your name from its national mailing list. Go to www.optoutprescreen.com or call 888-567-8688 to opt out of preapproved credit offers. Seal your defenses with a shredder, such as the Fellowes Powershred DS-2. We like its chomping power, sleek design and $60 price.
Find out how to protect your identity and what to do if your indentity is stolen.
BEST HEALTH SAVINGS ACCOUNT FOR INVESTORS
Health Savings Administrators
HSA Resources Bank
With an account from Health Savings Administrators, you can build a portfolio with 21 low-cost Vanguard mutual funds. And you can invest immediately, instead of waiting to accumulate a large balance. For a broader investment menu, there's HSA Resources Bank, which lets you buy stocks, bonds and funds through a brokerage account with OptionsXpress.
Get more information about HSAs and how they work.
SEE ALSO:
The 25 Best Web Sites
The Best Travel & Consumer Deals
The Best Tech Buys
The Best Stocks & Mutual Funds
The Best Tools to Maximize Your Retirement