The Best Credit Cards and Financial Services

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

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.

 

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.

 

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.