Never pay a phone bill again .... ever!

I heart Ooma.  Ooma is a VoIP based phone service that allows you to make free phone calls from home for a one-time fee to purchase the device.  You need a telephone and cable internet to make it happen.

My husband stumbled upon this little gem a few months ago and I thought it was too good to be true because the product offers you:

• Unlimited U.S. local and long distance calls (to all 50 states)
• Impeccable voice quality sound
• Super easy set up
• Ridiculously cheap international rates (If you buy a bulk package it's only 0.5 cents per minute to China and 3 cents per minute to Mexico).
• Caller ID
• Call Waiting
• Online voicemail playback
• Online call logs
• MANY more features

... all for the one time purchase of their device.  Today you can get the Ooma Telo on the website for $229.99.  Scott found the older version, the Hub, on woot.com for $122 in late November.  Most people prefer the Ooma Hub as a lot more technology is in the hardware, therefore more features are free.  For example, with the Telo you would have to shell out $12/year for incoming caller ID.  Not like that's a bad price, but given that is free with wireless plans, we're not accustomed to paying extra for those frills.

I don't know how these guys are making money which leads to my only fear, that they would go out of business and this Utopia of talking to friends and family for free would abruptly end.  These guys appear to be growing, which hopefully is a sign of their profitability and strength - they appeared in this weeks Costco weekly email advertisement!

This product may not be incredibly useful to everyone.  There are a couple of reasons it is a Godsend to me:

• Bad cellphone service.  I don't get service in my condo because I have an iPhone and if you live in New York City or San Francisco, you can't make a call on AT&T's network to save your life.
• Buzz my friends in.  One of the new updates recognizes DTMF touch tones.  I need a 415 phone number to easily buzz people in to our building.  I don't want to change the cell phone number I've head for years just so I can buzz people in the building so this has been a great solution for that.
• Pump up the volume.  If I am out running errands and want to get in touch with Scott who is playing video games in the living room, but left his cell phone in the bedroom.... chances are he won't hear it.  Having a home phone makes it easier to get in touch with him quickly!

 
I've had it for the last few months.  It works flawlessly.  I don't know why anyone would ever pay for a phone bill again.

1.3% Online Savings Account from American Express

American Express entered the online savings market in September 2009.  I currently use EmigrantDirect and their interest rate has fallen from around 6.125% when I first opened it in 2006 to 1.0% five today.

I haven't been very proactive about my online savings hygiene so I decided to poke around and see what was out there that could improve my current situation.  Below is a summary of what I found.  These accounts, other than when noted, have no minimum balance, no monthly fee, and minimum to open an account.

1. American Express Personal Savings - 1.3%
2. EverBank - 3 month introductory rate of 2.01%.  After that it is 1.0%, but if you're only keeping your money in there for a year, it averages out to 1.3%.  (requires $1500 minimum to open)
3. Discover 1.25% (but requires $500 minimum to open)
4. ING Orange Savings 1.1%
5. Ally 1.05%
6. EmigrantDirect 1.0% (minimum $1000 to open)

There are other accounts out there such as Capital One and Zions, but they require a minimum balance and/or minimum to open an account.  However, none of them (as of today) have a higher APY than American Express Personal Savings.  A great summary that compares account rates, minimums, fees etc. can be found on Google - compare savings accounts.

My recommendation would be to open up the American Express Personal Savings account.  It has no minimum to open an account, no monthly fees, and no minimum balance but still gives you the highest rate of return.    It is FDIC insured for all of those skeptics out there, is easy to get money in an out of, and has 24/7 customer service.

Happy Saving!