The CEO of USAA Bank (Josue Robles Jr.) is paying a $100 bonus (payable December 2009) for opening a checking account. USAA Bank offers free checking, free checks, free rewards, free Internet bill pay, free online and mobile banking, and free ATM use worldwide.

USAA membership is only for military personal and their children.  To open an account, you must be:

• Active duty officers and enlisted personnel.
• Children whose eligible parents have or had a USAA auto or property insurance product.
• National Guard and Selected Reserve officers and enlisted personnel.
• Officer candidates in commissioning programs (Academy, ROTC, OCS/OTS).
• Former military personnel:
  • Retired officers and enlisted personnel.
  • Former officers and enlisted personnel who separated from the military on or after Jan. 1, 1996.
• Former USAA members who had USAA auto or property insurance.

To take advantage of this offer, click HERE to open a USAA Free Checking account with direct deposit or call (800) 531-8132 and mention CEO 100.  The offer expires May 31, 2009.

My father always tells told me I should get a government job.  I guess he is right! According to a report from CNN’s “Lou Dobbs Tonight”, the pay gap between pubic and private workers is exploding.  (See video below)

The average compensation for federal workers has reached $116,450 vs. $57,615 a year for the average private worker.  The main reason being federal workers continue to receive pensions and retiree health care benefits while private employers have reduced these benefits. Additionally, the difference in average compensation, which includes wages and benefits, between federal and private workers grew from 68% in 2000 to 102% in 2007.

The gap in pay is expected to continue to widen.  Federal workers just received a 3.9% pay raise while private employers are freezing pay, cutting pay or laying off employees.

It’s ironic that the private companies pay the majority of taxes that pays federal employees.  The federal government is not in the business of turning a profit so the pressure isn’t there to perform.  When more money is required for federal agencies, the federal government can just raise taxes.

CNN: Pay Gap Between Federal and Private Workers

I’m in the process of refinancing our mortgage.  I’ve debated whether or not to refinance to a 15 vs. a 30 year fixed loan or keep my existing loan.  I ran the numbers and it was hard making a final decision.  There are pros and cons with all three scenarios.  

Fortunately, I’m able to refinance because I have a Freddie Mac loan.  My mortgage company is able to refinance the loan without a formal appraisal, which would have caused problems due to current market value my home.

After some careful analysis I decided to go with a 15 year fixed rate at 4.25%.  I just couldn’t pass on the rate.  My existing loan is a 30 year fixed at 5.625%. My out of pocket cost to refinance the loan will cost approximately $1,187. My mortgage will increase by $147 per month which isn’t too bad.  I expect my property taxes to drop due the value of my home falling which will offset the additional $147 per month.

When I initially purchased the house if I had went with a 15 year fixed it would have increased my mortgage by approximately $350 per month, which I didn’t want to pay at the time.  I have paid 6 years of my existing 30 year mortgage, so now I will have 15 years left.  I suspect we may live in the house for at least an additional 5 years but you just never know what may happen in the next 5 years.

The answer to the question of whether to choose a 15 year fixed, a 30 year fixed or keeping your existing loan is “it all depends”.   Below are some of the things I considered to making my decision:

• Current personal financial situation
• Current mortgage interest rates
• Interest rates falling vs. increasing
• How long we plan to keep the house
• Home equity after 3, 5, 10 years
• Loan interest savings after 3, 5, 10 years
• Investing/saving the difference in mortgage payments of 30 vs. 15 year loan
• Interest left on existing loan vs. interest cost on new loan
• Extra payments on a new or existing 30 year loan (to reduce life of loan and build equity) vs. 15 year loan

When I finally looked at the extra cost per month, the interest rate, money saved in loan interest cost, equity built in 3, 5, 10 years, etc., the new 15 year fixed loan at 4.25% is a great deal.

Related Articles: Is it Time to Buy or Refinance Your Home?

Progressive has a program called “MyRate” that offers safe and/or occasional drivers to chance to lower their car insurance. MyRate is a one-of-a kind, behavior-based car insurance program that lets drivers save money based on how they drive. Drivers who choose to sign up for MyRate receive a small wireless device that plugs into a port in their car and measures how, how much and when the car is being driven.

Cars driven less often, in less risky ways and at less risky times of day could receive a lower premium.  Progressive’s MyRate Program lets drivers pay based on how, how much and when their car is driven.  The service is available in several sates that purchase policies from Progressive online, by phone, or through its more than 1,100 independent insurance agencies in the state.  The MyRate program will continue to be rolled out to more states in 2009, pending state regulatory approval.

So how does it work? When you enroll a vehicle in the MyRate, Progressive will send you a MyRate device that plugs into your car.
Drive as you normally would. The MyRate device wirelessly and securely sends information about when, how much and how you drive your car to help determine your rate at renewal. You can log into your account and see how well you’re driving.  You can also track your projected renewal rate based on your driving behavior by logging also logging into your account at progressive.com.

For more information visit Progressive.com/MyRate.

Related Article: 8 Ways to Save Money on Auto Insurance

Pfizer Inc announced today that it will launch a program to help eligible unemployed Americans and their families who have lost their health insurance maintain access to their Pfizer medicines for free. The inspiration for the new program, called MAINTAIN (Medicines Assistance for Those who Are in Need), was generated by Pfizer employees who were witnessing friends, family and neighbors struggle to make ends meet after losing their jobs.

The program, which applies regardless of prior family income, will be open for enrollment through December 31, 2009 and applies to eligible Americans who have become unemployed since January 1, 2009. It is designed to help recently unemployed Americans and their families who have lost their insurance and who are taking Pfizer medicines to continue treatment for free for up to one year. Nearly 46 million Americans lack health insurance coverage, and that number is increasing as unemployment rates reach their highest levels in 25 years.

Pfizer employees proposed the idea of MAINTAIN to the company’s senior leadership team just within the last month. Pfizer employees also asked to be able to do their part by donating their own money to the program, and the Pfizer Foundation will match their donations.

Eligibility requirements of the new program include:

• Loss of employment since January 1, 2009
• Prescribed and taking a Pfizer medicine for at least 3 months prior to becoming unemployed and enrolling in the program
• Lack of prescription drug coverage
• Can attest to financial hardship

People who qualify will receive their Pfizer medicines for free for up to 12 months or until they become re-insured (whichever comes first). More than 70 Pfizer primary care medicines will be available through the program.

To make it easy for people to apply, the program will be integrated into Pfizer’s existing family of patient assistance programs called Pfizer Helpful Answers. A single point of entry makes it easy to get help:

• All of Pfizer’s patient assistance programs, including the new program, can be reached by calling a single phone number (1-866-706-2400) or by visiting www.PfizerHelpfulAnswers.com
• Those who contact Pfizer Helpful Answers in need of medicines made by another company will be directed to the Partnership for Prescription Assistance, a pharmaceutical industry initiative that serves to raise awareness of, and boost enrollment in, more than 475 public and private patient assistance programs.

The new program will be fully operational on July 1, 2009. However, people in need now can call 1-866-706-2400 for help. MAINTAIN is a part of Pfizer Helpful Answers, a joint program of Pfizer Inc and the Pfizer Patient Assistance Foundation.

Below is part of a documentary by FRONTLINE titled, “The Madoff Affair.“  The video is of Michael Bienes, who was one of Madoff first two accounts hired in the early 1960s at Madoff’s small investment advisory business.

In the interview with FRONTLINE, Mr. Bienes describes the money making early years. It was “easy, easy-peasy, like a money machine.” When asked if he had ever questioned Madoff about his approach, Bienes answers, “Never. Why would I ask him? I wouldn’t understand it if he explained it.”

FRONTLINE: The Madoff Affair | Michael Bienes Exclusive Interview

Download Audio:  Behind the scene interview with the producers.

Watch video at PBS.com.

Check out these five free Microsoft Applications that many people don’t know exists or are overlooked.   Some of these apps can save you hundreds of dollars because you don’t have to purchase their desktop versions by allowing you to easily use them online.   Some of these applications are also offered by Google, Yahoo and other smaller companies, however, these apps by Microsoft match or beat them.

The free Microsoft applications are as follows:

1. Windows Live SkyDrive – Offers 25GB of online storage free.  You can create folders online and upload files to it. You can also share folders with others.
2. Windows Live Sync – Allows multiple PCs to keep their files and folders synchronized.  You will have to download and run a small app on each PC, then use Windows Live Sync and specify which folders on which PCs should be synchronized.
3. Live Mesh – Allows you to keep your files in the cloud.  Instead of synchronizing files and folders from PC to PC, your create folders in Live Mesh. And then have your PCs sync with those folders.
4. Virtual Earth 3D – A better app that Google Earth that gives you a dramatic 3D views of places around the world.  The downloadable app uses simple controls, allowing you to fly in and out of cities in full 3D.  You can get guided tours that other people have created or make a tour your self and sharing them with others.
5. Office Live Workspace – This service is similar to Google Documents and Zoho that allows you to create and share documents, schedules and to-do lists, etc.  Applications you can use are Office Word, PowerPoint, and Excel.  You can view documents from almost any computer with a Web browser.  No need for flash drives; files are there when and where you need them.  Your files are password-protected.