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  • Robinhood Review 2023: Pros and Cons

    Robinhood Review 2023: Pros and Cons

    Did the movie “The Big Short” go right over your head? Does Nasdaq sound more like a foreign country than a stock market index? When you hear about bear markets and bull markets, do you envision adorable cartoon mammals browsing for fresh produce at a local farmers market?

    You’re not alone.

    The stock market can be confusing, and if you’re not a financial wizard in the Wall Street inner circle, you might be tempted not to bother with stock and options trading at all. But you’d be missing out.

    That’s where apps like Robinhood come in. In this Robinhood review, we’ll discuss how Penny Hoarders can go from novice traders to expert stock market gurus, no matter how much or how little they have to invest.

    What Is Robinhood?

    Robinhood offers a unique brokerage account with commission-free investing from your smartphone. Robinhood has been around for the better part of a decade — the company launched April 18, 2013. Its two founders, Vladimir Tenev and Baiju Bhatt, met at Stanford University as roommates and eventually moved to New York City to build finance companies. 

    Upon seeing firsthand how Wall Street insiders and powerhouse firms paid almost nothing when trading stocks while average Americans had to pay a commission fee for every trade, they instead headed to California to develop a financial product that allowed everyone to trade easily and affordably.

    The resulting financial product, of course, was Robinhood. The company today is headquartered in Menlo Park, California.

    Robinhood has not been without its challenges. It’s famous for serious outages during market surges in 2020 and its role in the early 2021 market chaos related to the Reddit forum called r/wallstreetbets, where it restricted member access to securities like GameStop, Nokia and AMC. More recently, Robinhood laid off 23% of its staff, just one example of the massive tech industry layoffs in 2022, and also has been in the news for questionable trades. 

    However, Robinhood’s overall mission to make stock market trading accessible for everyone is admirable, and it is one of many investment and trading tools that seeks to put power back in consumers’ hands to elevate the financial status of the average American.

    That’s a product that, even with its flaws, we can get behind.

     

    What Tradable Securities Does Robinhood Offer?

    The Robinhood platform is a great solution for free(!) trading of stocks, options, ETFs (exchange-traded funds) and ADRs (American Depositary Receipts), as well as cryptocurrency trading. The trading platform requires no minimum balance, offers fractional shares and includes plenty of educational resources. While Robinhood is most known for trading stocks and crypto, you can also use it for cash management. 

    Robinhood does not, however, offer access to mutual funds and bonds..

    In 2021, Robinhood began to offer IPO access, meaning investors could purchase shares of stock in new companies at the IPO price before they go public. And in 2022, it introduced individual retirement accounts, or IRAs.

    What Can You Trade on Robinhood?

    • U.S. exchange-listed stocks
    • U.S. exchange-listed ETFs
    • Options contracts for U.S. exchange-listed stocks and ETFs
    • ADRs for more than 650 globally listed companies
    • Cryptocurrency

    What Can’t You Trade on Robinhood?

    • Foreign-domiciled stocks
    • Select OTC equities
    • Preferred stocks
    • Tracking stocks
    • Stocks that trade on foreign exchanges
    • Royalty trusts
    • Units
    • Closed-end funds
    • Mutual funds
    • Bonds
    • Fixed-income trading
    • New York registry shares
    • Limited partnerships
    • Chinese securities affected by the Nov. 2020 executive order
    • Spanish ADRs

    How to Get Started with Robinhood

    To sign up with a Robinhood brokerage account, simply visit the website and press the black “sign up” button.

    Hot Tip: Robinhood is currently offering one free fractional share upon signup. There are 20 fractional shares available to choose from. To generate its 20 offers, Robinhood chose the two largest S&P 500 companies within each of the top 10 sectors based on market cap.

    To open an account with Robinhood, you have to meet a few individual requirements:

    • You must be 18 or older.
    • You need a valid Social Security Number (Note: You may not use a Taxpayer Identification Number).
    • You must be a legal U.S. citizen, U.S. permanent resident or have a valid U.S. visa and have an address in the 50 states or Puerto Rico (exceptions made for members of the U.S. military stationed outside the country).

    The Robinhood trading platform is accessible via the web or app (iOS and Android).

    The process of activating your account can take some time. You’ll start by submitting an application. While Robinhood reviews the application, you can queue one deposit to fund your account, but you won’t be able to use that money to make trades until account approval.

    Typically, Robinhood will take a few days to either approve your application or request more information. If they request more information or documentation, be prepared to allow five to seven days for review.

    How Much Does Robinhood Cost?

    Trading with Robinhood is free. That’s the whole reason its founders launched the company: free stock trading for regular people. That means you won’t pay commissions on equity trades or options trades. However, you could wind up having to pay account transfer fees, wire fees, check fees and live broker fees, among others.

    In addition, Robinhood Gold allows you to trade on margin at a 7.25% annual rate. It also allows you to make bigger deposits with faster fund access. This fee for the margin account is $5 per month.

    Robinhood Gold, Explained

    Margin trading means trading with borrowed money. If you invest in a bad stock and lose money on the investment, you’ll owe that money back.

    For example, say you borrow $500 to invest in a stock worth $500. But that stock plummets to $100. You will still owe the remaining $400 back to Robinhood. That’s what makes margin trading a little too risky for novice traders.

    Not only that, but if you borrow more than $1,000 to trade on margin, you’ll owe 2.5% yearly interest on that borrowed money above that $1,000.

    Because Robinhood is targeted at new investors — and margin trading is a risky practice that can break even the savviest stock market gurus — we recommend that you invest with your own money, and make sure it’s money that, if lost, will not financially ruin you.

    In fact, one of our biggest stock trading tips for beginners is to stay away from margin trading.

    So How Else Does Robinhood Make Money?

    If Robinhood is commission-free and not everyone uses Robinhood Gold, how does Robinhood make money off you? Robinhood spells this out transparently on its website:

    • Rebates from market makers and trading venues: Robinhood has developed relationships with market makers and trading venues that pay Robinhood rebates for directing orders to those makers and venues. In the industry, this is known as payment for order flow (PFOF).
    • Stock loans: Robinhood can loan stocks held in your account to traders and hedge funds for short selling. Robinhood gets to keep the money it makes from this; you as the investor do not share in the wealth.
    • Income from cash: If you have idle cash sitting uninvested but haven’t moved it into a cash management account, Robinhood earns interest on that cash.
    • Cash management account: Every time you use the debit card for your cash management account, Sutton Bank (the card issuer) earns a fee, which it shares with Robinhood.
    • Robinhood Gold: Robinhood makes money off every Gold subscription, both from the monthly fee and from margin interest.

    Robinhood Review: Key Features

    In this section, we will break down some of the hallmark features of Robinhood.

    Robinhood: At a Glance

    Feature Details More Details
    Trading fees $0 n/a
    Account minimum $0 n/a
    Tradable securities Stock options ETFs ADRs; crypto
    Mobile app rating 4.2 on App Store 4 on Google Play
    Customer support Talk to a live agent 24 hours a day, 7 days a week 30-minute guarantee
    Other key features Fractional shares IPO access
    Beginner perks Educational resources Free stock at sign-up

    Commission-Free

    Robinhood’s schtick has long been that it offers commission-free trading. That means you will spend $0 for stock trading and $0 for options trading. ETFs also are commission-free.

    This was the original mission of the founders, but in the time since launching their revolutionary idea, some of the bigger, traditional players, like Fidelity and Charles Schwab, have latched onto the same idea — and are backed by a better customer support system and a better-supported platform.

    That has meant the Robinhood trading platform has had to find new ways to differentiate, like cryptocurrency and fractional shares. More on these below.

    No Account Minimum

    Of course, you will need to put money in your account to invest, but Robinhood does not have an account minimum, nor does it charge you for having a low or zero balance. And with fractional shares being an option, you can get started investing with as little as a dollar in your account.

    Note: To purchase a security on margin (through Robinhood Gold), you need to have at least $2,000 in your account. This is not a Robinhood requirement but rather a regulation set by the Financial Industry Regulatory Authority (FINRA).

    Cryptocurrency Trading

    Cryptocurrency is still a foreign concept to many investors, but just because something is new and scary (also, it’s been around since 2009, so it’s hardly new anymore) doesn’t mean you shouldn’t invest. Not all brokers allow you to buy and sell cryptocurrency, but Robinhood offers support for multiple cryptocurrencies, including Bitcoin, Dogecoin and Ethereum, with Robinhood Crypto (open 24/7).

    In keeping with the whole “Robinhood is free” theme, Robinhood charges 0% for crypto exchanges. Some competitors charge up to 4%.

    Fees

    Not only does Robinhood offer free trades on stocks, options, ETFs and ADRs, it also has no account fees, inactivity fees or ACH transfer fees. Robinhood Gold, as mentioned, currently costs $5 a month.

    Mobile App

    Robinhood was created in the heart of Silicon Valley in Menlo Park, so, unsurprisingly, its mobile app is streamlined and easy to use. At the time of writing, the Robinhood app had 4.2 stars in the App Store based on more than 4 million reviews.

    Its website, too, is streamlined. It doesn’t have a lot of extras, which is great if you are a novice trader. A more senior investor may find the site lacking, however.

    Customer Support

    While Robinhood offers customer support, this seems to be the biggest issue raised by members. Customer review sites often are littered with complaints that customer service is virtually nonexistent, especially pre- and post-market.

    In an effort to improve its relatively low-rated customer support options, Robinhood rolled out a new customer service feature in 2021. This allows customers to request a call back, 24/7. Robinhood promises an agent should call within 30 minutes.

    No Mutual Funds and Bonds

    While commission-free stocks, options, ETFs and even crypto are a big pro of Robinhood, its lack of mutual funds and bonds can be frustrating for traders who want to diversify. As far as retirement accounts go, mutual funds are a key part of a retirement investment strategy.

    Fractional Shares

    True to its goal of making growing financial wealth more accessible to average Americans, Robinhood released fractional share options in late 2019. This means, if you can’t afford an expensive stock valued at, say, $1,000, you could instead buy a fraction of the stock, maybe $100 worth of it, or even just $10.

    Right now, Robinhood allows you to buy as small as one-millionth of a share. Just like full shares, trading of fractional shares can be done in real time and is commission-free.

    Recurring Investments

    Another tool that Robinhood has introduced in recent years is recurring investments, which is a nice pairing with a fractional share investment strategy. For example, if Company X’s stock hovers around $200, you can set up a recurring investment in a fractional share at $25/week. Within roughly eight weeks, you could own a full share.

    Most brokers structure recurring investments as buying by the share, which typically leaves your account funded with some uninvested cash. But Robinhood’s recurring investments are structured as buying by a dollar amount, which makes the best use of all your invested cash.

    IPO Access

    New in 2021, Robinhood gave customers access to purchase stocks in upcoming IPOs (initial public offerings) at the IPO price. No minimum account balances or special status requirements are necessary.

    Cash Management Account

    Another cool feature of Robinhood is the associated cash management account. You can have your paycheck deposited here, use it to pay bills and deposit checks, and, of course, fund your account. Like a proper bank account, this account gives you access to more than 75,000 fee-free ATMs (pretty much everywhere Mastercard is accepted) and comes with a debit card. And the best part: It earns 1.5% APY. For reference, the FDIC says the average interest rate for a savings account is 0.33% APY. And because the account is operated through a network of banks, you’ll get more than the typical $250,000 FDIC insurance; instead, the account is insured up to $1.25 million.

    Educational Resources

    A lot of now-outdated Robinhood reviews mention the lack of educational resources. We couldn’t find anything to be less true of Robinhood. Perhaps in response to some of those reviews, Robinhood has stepped up its game, with plenty of online resources on the website as well as a daily financial newsletter called Robinhood Snacks. Robinhood markets it as a “3-minute newsletter with fresh takes on the financial news.”

    Pro Tip

    Serious investors keep up with this kinds of news. It may not have the same appeal as celebrity gossip, but it will help you make wise decisions investments decisions.

    Robinhood makes it easy to access news from Reuters, Cheddar, WSJ Markets, etc. Upgrading to Robinhood Gold gets you access to Morningstar, Nasdaq and Nasdaq Totalview Level 2 Market Data.

    What Customers Are Saying About Robinhood

    Because of Robinhood’s role in the recent GameStop market chaos and following layoffs in 2022, many angry investors and emboldened Redditors spoke their minds online, meaning Robinhood’s current ranking on sites like the Better Business Bureau (BBB) and Google Play is suffering. This is more a reflection of reviewers’ overall criticisms of capitalism, hedge fund managers and the 1% than it is on Robinhood, which, if you take a step back, is really trying to help the average investor.

    Pros and Cons of Robinhood

    There’s a lot to love about Robinhood, especially if you are a new trader. More experienced traders may prefer a different approach to trading, however. Weigh these pros and cons before deciding on a Robinhood brokerage account.


    Pros

    • The educational content is great if you are new to the stock market and want to learn the language.
    • The cash management account makes it easy to fund your investments and earns a decent APY.
    • You can strategize by combining fractional shares and recurring investments to diversify your assets and minimize uninvested cash, no matter how much you have to invest.
    • The commission-free trading and no account minimum truly make this accessible to anyone who wants to invest.
    • Robinhood gives you the option of investing in cryptocurrency and access to IPOs.
    • The mobile app and online trading platform are known for their ease of use.
    • There are no account or trading fees, nor are there account inactivity or ACH transfer fees
    • Robinhood is running a promotion wherein you get free fractional share upon signing up.


    Cons

    • The role Robinhood played in limiting investments in squeeze stocks (like GameStop) in early 2021 brought the original mission of the company into question. The 2022 layoffs didn’t help.
    • Customer support is lacking, especially compared to larger brokers. Robinhood customers complain that customer service is especially challenging pre- and post-market.
    • Robinhood lacks mutual funds and bonds.
    • By not charging investors commission, Robinhood instead makes money through the payment for order flow, a common standard among online brokers. Some critics say this is a conflict of interest.

    Are There Alternatives to Robinhood?

    If you want to stay away from major players like TD Ameritrade and Charles Schwab, Robinhood is arguably the most popular trading tool.

    Its most notable competitor is Webull. Both Robinhood and Webull have their advantages; it truly comes down to your personal preferences. But Robinhood and Webull aren’t your only options. In fact, we’ve rounded up the best investment apps currently offered; choosing the right app depends on your own specific needs and investment strategy.

    Frequently Asked Questions (FAQs) About Robinhood

    Still have questions about opening a Robinhood account? We’ve provided answers to some of the questions our readers are most commonly asking.

    Yes, Robinhood is a safe platform for investing. Robinhood is a member of the SIPC (Securities Investor Protection Corporation), meaning your funds are insured up to $500,000. Robinhood also is regulated by the Securities and Exchange Commission (SEC).

    Is Robinhood a Brokerage Account?

    Yes, Robinhood offers a brokerage account as its key offering, but you can also open a cash management account with Robinhood.

    Does Robinhood Pay Dividends?

    Robinhood processes your dividends automatically, crediting cash to your account by default.

    Is Robinhood Gold Worth It?

    Most investors will be fine with Robinhood’s free investing accounts. Being a Robinhood Gold member is ideal for margin trading, but we don’t recommend this unless you are a more seasoned investor.

    Timothy Moore covers banking and investing for The Penny Hoarder from his home base in Cincinnati. He has worked in editing and graphic design for a marketing agency, a global research firm and a major print publication. He covers a variety of other topics, including insurance, taxes, retirement and budgeting and has worked in the field since 2012. Freelancer Lauren Richardson contributed to this post. 


    tmoorefreelance@gmail.com (Timothy Moore)

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  • Don’t Sleep on That Tax Refund — 5 Reasons Tax Experts Say to File Early

    Don’t Sleep on That Tax Refund — 5 Reasons Tax Experts Say to File Early

    Believe it or not, tax season has already begun. Amid the flurry of tax forms flooding inboxes and mailboxes, you might wonder about filing taxes early this year. If you’re expecting an IRS refund, it’s tempting to run out and try to get your return in now. Less enticing is rushing to submit tax documents if you owe money.

    However, early birds in a few states might catch some unappetizing worms this year when it comes to tax returns. The Internal Revenue Service (IRS) finally issued guidance late last week saying most taxpayers who received state payments related to general welfare and disaster relief won’t have to report that income for tax purposes.

    The exceptions to this rule are taxpayers from Georgia, Massachusetts, South Carolina, Virginia and Alaska who will have to consult the IRS and state officials for more nuanced rules about the taxability of relief payments.

    Given this unexpected road bump, we spoke to several tax experts about the best time to pay taxes this year. Should you file earlier if you’re expecting a big return or can you skate along until right before the filing deadline to make an IRS payment? Here’s what they had to say about whether early filers are smart to beat the crowds and any potential risks in filing early.

    When Does Tax Season Begin?

    If it seems like everyone becomes a procrastinator during tax season, you’re not wrong. Technically, the 2023 tax season kicked off Jan. 23, when the IRS website opened to the submission of 2022 taxes electronically. This year’s Tax Day, or the last day to submit online or mail paper returns before incurring late penalties, is Monday, April 18.

    That means Americans have three months to gather tax documents and work with a tax professional or tax software to ensure an accurate tax return. Despite this generous window and a slew of free tax help resources, analysis of IRS data indicates about 30% of Americans still waited until April to file during the most recent tax year. The same data shows only about 12% of Americans are early filers, meaning they file electronically in late January as soon as the window opens.

    Pro Tip

    If you are worried about making mistakes when filing, we highly recommend using tax software like TurboTax, H&R Block or TaxAct.

    How Early Can I File My Federal Tax Return?

    Although the IRS has advised caution to taxpayers in five states to clarify the taxability of state payments before they file, it’s full steam ahead for most taxpayers across the country.

    However, it’s advisable to wait until you receive all your tax documents, including any 1099-Ks from payment platforms like Venmo and PayPal. Because gig workers and self-employed contractors rely on a patchwork of tax documents to ensure a complete and accurate return, this can be a tricky waiting game.

    Robert Persichitte, a certified public accountant and founder of Delagify Financial, likes to remind taxpayers who owe money that they can still file early and pay later.

    “You don’t have to pay when you file,” Persichitte clarifies. “Even if you can’t pay your taxes, you should still file. There are late-filing penalties that you’ll have to add t

    What if you can’t pay your taxes? First, don’t panic. Second, read this article on what steps you should take.

    Do You Get a Bigger Tax Refund if You File Early?

    There’s no evidence that filing early means bigger tax refunds. However, there’s plenty of proof that taking the time to file an accurate return provides a better chance of a larger kickback from Uncle Sam.

    Rushing at the last minute to file means you could overlook eligibility for certain tax credits, like the child tax credit or the earned income credit. And if you don’t wait for all your tax paperwork to arrive, you might miss sources of income you should report such as unemployment income or interest from a savings account.

    One myth we can definitely debunk is whether when you file increases your chances of being audited. Barbara Weltman, an attorney, nationally recognized tax expert and author of “J.K. Lasser’s 1001 Deductions and Tax Breaks 2023,” says when you file has no bearing on whether you’ll be audited. “Filing early or late has no impact on the chances of being audited,” Weltman confirms. “Though some may believe otherwise.”

    5 Reasons to File an Early Tax Return

    1. Avoids processing delays
    2. Limits stress over tax deadlines
    3. Decreases risk of tax identity theft
    4. Provides time to put a payment plan in place
    5. Makes connecting with a tax preparer easier

    1. Filing early avoids processing delays.

    The 2022 tax season was filled with delays. While two-thirds of taxpayers were entitled to an IRS refund that averaged $3,200, those refunds took much longer to process. And for unfortunate taxpayers who had to adjust returns, those adjustments took the IRS an average of 197 days to process.

    Persichitte advises his clients to file as early as they can. “Filing early helps you avoid the rush, fix any issues and understand your taxes. If there is an issue like misspelling a name, the IRS rejects the return. Filing early allows extra time to fix those kinds of problems as they arise.”

    2. Filing early limits stress over tax deadlines.

    Having a deadline hanging over your head is never pleasant. Knowing not only when you’ll get your return back but how much you can expect takes much of the stress out of the tax process. When everyone else is scrambling in April, you can be sailing away to somewhere tropical courtesy of your generous tax return.

    Pro Tip

    Got your filing squared away and looking toward next year’s taxes? Use our guide to 2023 tax brackets to understand how your taxes might change.

    3. Filing early decreases the risk of tax identity theft.

    Tax experts say one of the biggest reasons to file early is that it reduces the risk of someone stealing your tax return. “Early filing is a way to thwart tax identity theft,” Weltman explains. “If you file early, it prevents an identity thief from filing under your Social Security number.”

    Tax refund fraud happens a lot more than you might think. The U.S. Justice Department has an entire task force devoted to this kind of tax fraud and reports millions of Americans have their tax returns stolen every year.

    4. Filing early provides time to put a payment plan in place.

    The longer you wait to file, the less time you’ll have to determine if you owe money. Before that tax bill comes knocking, give yourself a few weeks to devise a plan.

    Persichitte says gig workers are notorious procrastinators. “Typically, they will owe taxes and put it off because they don’t want to pay the bill. Oftentimes, they are shocked by how much they owe in taxes. If they started in February, they’d have more time to prepare, save up the money for the tax bill and have the time they need to gather their documents.”

    5. Filing early makes connecting with a tax preparer easier.

    If you think you’re busy during tax season, wait until you see your accountant’s schedule. Advice from a tax professional on preparing your return is invaluable, but their time comes at a premium in March and April.

    Adjusted gross income. The additional child tax credit. Earned income tax credit. Taxes can be a lot to manage. Seeking out tax tips early this tax season can save money and maximize the return that hits your bank account.

    Preparing returns yourself and need a little tax help? We’ve got you! Check out our complete guide to how to file taxes and maximize your return.

    Are There Any Reasons Not to File Early During Tax Season?

    Unless you live in a state where you need to clarify the taxability of state payments, there’s no good reason not to file early. Weltman says you might need to hit pause if you’re waiting for more tax information, are making a 2022 contribution to an IRA or health savings account, or you’re trying to work with a tax professional on your return.

    Persichitte echoes this advice. “I would only wait to file if you are still waiting on a document. Some documents, like K-1s, might not be available until after the filing deadline. The best action is to file an extension right when you know your documents will be late.”

    Frequently Asked Questions About Filing Taxes Early

    Does Filing Early Affect the Child Tax Credit?

    Weltman says filing early can present a problem for those who qualify for refunds from the earned income credit or the refundable child tax credit. “By law, the IRS cannot issue them before Feb. 15. For returns filed earlier, the IRS says to expect refunds this year by Feb. 28, although it could be earlier.” 

    I Don’t Have All My Tax Documents Yet. What Should I Do?

    Whether you’re missing a 1099 or a W-2, wait until mid-February before you panic. While employers are required to provide these forms by Jan. 31, they can get delayed in the mail. If nothing turns up, you can contact the employer or the IRS (call 1-800-829-1040), and they’ll resolve it. In the meantime, you may be able to estimate your income using your own records.

    How Quickly Will I Get My IRS Refund Through Direct Deposit?

    Good news. If you file electronically, the IRS says 9 out of 10 taxpayers can expect their return to be processed within 21 days. The IRS says to use e-file and choose direct deposit to speed up the refund process. If you prefer to submit a paper return, note that the IRS says you could face delays of up to six months. Within 24 hours of filing online, you should be able to check the status of your refund using the IRS Where’s My Refund? tool.

    Kaz Weida is a senior staff writer at The Penny Hoarder covering saving money and budgeting. As a journalist, she has written about a wide array of topics, including finance, health, politics, education and technology, for the last decade.


    kaz.Weida@thepennyhoarder.com (Kaz Weida)

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  • This Tax Credit You’ve Never Heard of Could Reduce Your Tax Bill By $2,000

    This Tax Credit You’ve Never Heard of Could Reduce Your Tax Bill By $2,000

    Believe it or not, the government will pay you to save.

    Seriously. Check this out.

    It’s called the Saver’s Credit, and it’s a valuable — but often overlooked — way to save money on your taxes.

    Saver’s Credits totaling more than $1.7 billion were claimed on about 9.4 million tax returns in tax year 2020, according to the Internal Revenue Service. That’s an average credit of about $186 per return.

    Keep reading to learn who is eligible for the Saver’s Credit and how it works.

    What Is the Saver’s Credit?

    The Saver’s Credit is a way to put money back in your pocket when you save for retirement.

    If you’re a low- or middle-income worker, you can claim the Saver’s Credit — also known as the retirement savings contributions credit — by adding money to a 401(k) or individual retirement account (IRA).

    You may also be eligible for the credit for contributions to an Achieving a Better Life Experience (ABLE) account, if you’re the designated beneficiary.

    The Saver’s Credit is worth up to $1,000 for single filers, or $2,000 for married couples filing jointly.

    Depending on your adjusted gross income and tax filing status, you can claim the credit for 50%, 20% or 10% of the first $2,000 you contribute to a retirement account within a tax year.

    Not only do a lot of people forget about this credit, many low-income workers miss out on the sweet tax benefits of saving for retirement because they worry doing so will strain their tight budgets.

    It’s worth checking to see if you qualify for the Saver’s Credit, especially if you or your spouse were unemployed or experienced a reduction of income in 2022.

    How Do You Qualify for the Saver’s Credit?

    First, you’ll need to meet some basic requirements.

    To be eligible for the Saver’s Credit, you must:

    • Be 18 years or older and file a tax return.
    • Not be claimed as a dependent on someone else’s tax return.
    • Not be a full-time student. (However, you’re still eligible for the Saver’s Credit if you’re enrolled in an online-only school or participating in on-the-job training.)
    • Save some money in a retirement account, like an employer-sponsored 401(k).

    The Saver’s Credit can be claimed by any filing status: married filing jointly, head of household, single, married filing separately or qualifying widow(er).

    The Internal Revenue Service sets maximum adjusted gross income caps for the retirement savings contribution credit each year.

    When you file your 2023 taxes for the 2022 tax year, your adjusted gross income (AGI) must fall below the following thresholds to qualify for the Saver’s Credit:

    • $68,000 for married filing jointly.
    • $51,000 for head of household.
    • $34,000 for a single filer or any other filing status.
    If you earn too much to qualify for the Saver’s Credit, you can still receive a tax deduction by contributing to a traditional IRA.

    How Much Is the Saver’s Tax Credit Worth?

    How much the Saver’s Credit is worth depends on how much you contribute to your retirement account, your filing status and your AGI.

    Pro Tip

    The maximum amount of the Saver’s Credit cannot exceed $1,000 for single filers or $2,000 for joint filers in 2023.

    Your income determines the percentage of your retirement savings that will be credited to your tax bill.

    You might be eligible for 50%, 20% or 10% of the maximum contribution amount.

    Keep in mind that the percentage of your retirement contribution you can receive as a credit decreases as your income increases.

    Saver’s Credit Rate for 2023

    Filing status 50% of contribution 20% of contribution 10% of contribution
    Single Filers, Married Filing Separately or Qualifying Widow(er) AGI of $20,500 or below AGI of $20,501 – $22,000 AGI of $22,001 – $34,000
    Married Filing Jointly AGI of $41,000 or below AGI of $41,001 – $44,000 AGI of $44,001 – $68,000
    Head of Household AGI of $30,750 or below AGI of $30,751 – $33,000 AGI of $33,001 – $51,000

    For example, a single filer with an adjusted gross income of $20,000 who invests $2,000 in a Roth IRA would receive a maximum credit for 50% of their contribution, or $1,000.

    But a single filer earning $33,000 who contributed $2,000 to a Roth IRA would receive a credit of just 10% of the amount they invested, or $200.

    As you can see, people with the lowest income benefit most from the Saver’s Tax Credit.

    How Do I Claim the Saver’s Credit?

    Here’s what eligible taxpayers need to do to take advantage of the Saver’s Credit.

    First, you’ll need to open a retirement account if you don’t have one already. You can open one with any brokerage firm or robo-advisor. Or, you can start contributing money to your workplace 401(k).

    Contributions to the following retirement accounts qualify for the Saver’s Credit:

    • Traditional or Roth IRA
    • Traditional or Roth 401(k)
    • SIMPLE IRA
    • SEP IRA
    • ABLE account (if you’re the designated beneficiary)
    • 403(b) plan
    • 457(b) plan
    • A federal Thrift Savings Plan

    Next, make your deposit.

    The IRS actually gives taxpayers until April 18, 2023, to make contributions to individual retirement accounts and include those investments on their 2022 taxes. Pretty cool, huh?

    Lastly, you need to file Form 8880: Credit for Qualified Retirement Savings Contributions with the IRS. If you’re using online tax software, like TurboTax, then it’s even easier to file this form with your tax return.

    Other Information About the Saver’s Tax Credit

    It’s important to note that this government tax benefit is not a deduction, but a credit.

    On the scale of great tax breaks, tax credits are the best. While deductions merely lower your taxable income, a tax credit reduces your actual tax bill dollar for dollar.

    Let’s say you do your taxes and discover you owe $1,000. If you paid $1,000 out of your paycheck to your retirement accounts over the course of the year and received a $500 Saver’s Credit, your tax bill would shrink to $500.

    It’s also worth noting that the Saver’s Credit can be claimed in addition to any tax deduction you receive by making qualified retirement savings contributions.

    So if you contribute to a traditional IRA or traditional 401(k), you could receive double tax savings: a reduction in your taxable income equal to the amount you kicked into your retirement account plus the Saver’s Credit (if you qualify).

    One potential drawback about the Saver’s Credit is it’s nonrefundable. Usually that means it can only be used to lower your tax bill.

    But a nonrefundable credit can also boost your refund if you had taxes withheld from your paycheck throughout the year, according to Robert Persichitte, a certified public accountant at Delagify Financial in Colorado.

    Here’s how that can work:

    1. You had taxes withheld from your paycheck.
    2. You used a nonrefundable credit to erase your tax liability.
    3.  You get your money back as a refund.

    Finally, you must contribute new money to a retirement plan: Rollover contributions from an existing account — like a 401(k) rollover into an IRA — don’t count.

    Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder. She focuses on retirement, investing, taxes and life insurance. 


    rachel.christian@thepennyhoarder.com (Rachel Christian, CEPF®)

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  • Watch TV for Free With These Top Digital TV Antennas

    Watch TV for Free With These Top Digital TV Antennas

    In a world where we have gotten used to paying for every bit of streaming content that we watch, you may be surprised to learn that free television still exists. Using a digital TV antenna, you can pick up free channels in your area and enjoy local news, sports and additional programming without paying any recurring fees.

    We’ll be looking at the best digital TV antennas you can hang up inside, connect to the outside of your home or attach to your boat or RV. Of course, we’ll take price into account, selecting the best TV antennas that cost the least.

    With this year’s Super Bowl being aired on Fox, you can enjoy the game live using a digital TV antenna. No need to pay for a streaming service to witness every touchdown; save that extra money for wings and beer.

    Best Digital TV Antennas Compared

    Antenna Range Environment Price
    Gesobyte Amplified HD Digital 250 miles Indoor only $29.90
    QLZLLF TV Antenna 350 miles Indoor and outdoor $32.99
    PBD WA-2608 Digital Amplified 150 miles Outdoor $50.98
    1byone 360° Omni-Directional 100 miles Outdoor $69.99
    ANTAN Indoor Window 45 miles Indoor $13.99

    What Can I Watch With a TV Antenna?

    You might be surprised by the amount of free television content you can obtain using a digital TV antenna. You won’t be able to pick up paid cable channels, but a large part of network television is available from CBS, ION, ABC, Fox, PBS, CW, ABC and NBC. You can enjoy network television stations as long as you can pick up a signal with your TV antenna.

    Before purchasing a TV antenna, we recommend using an online tool to identify what TV signals and stations you can pick up from your location. The official FCC DTV Reception Maps webpage is the best pick for identifying signal strength. Any strong or moderate signals shouldn’t be a problem to pick up with a TV antenna, while weak signals will require a more robust solution.

    Pro Tip

    Your TV must have a built-in HD tuner to utilize a digital antenna. Check your TV’s manual to confirm this feature before ordering a TV antenna. Otherwise, you will need a digital converter box.

    Gesobyte Amplified HD Digital

    Best Indoor TV Antenna

    Key Features

    • Easy mounting on walls or windows
    • A range of up to 250 miles
    • Includes an 18-foot cable

    Gesobyte Amplified HD Digital

    Range

    250 miles

    Environment

    Indoor only

    Price

    $29.90

    TV antennas have come a long way from the days of rabbit ears on top of a wooden box. Our favorite designs for TV antennas are those that sport a flat wall or window mountable design (aka flat antennas). The Gesobyte Amplified HD digital TV antenna offers such a compact design, making it easy to hang on your wall or stick to a window.

    The setup is effortless, with only two plugs needed for the TV antenna. Use the provided USB power brick to plug your indoor antenna into a power source, then use the traditional coaxial connection to connect it to your HD or 4K television to begin watching.

    The TV antenna’s power source allows the unit to amplify its reach, picking signals up over a 250-mile range.

    The Gesobyte is available in white or black, so you can pick the TV antenna color that best matches your interior.

    QLZLLF TV Antenna

    Best Runner-Up TV Antenna

    Key Features

    • Large tower design for an increased signal range
    • Includes tools for mounting to wall
    • Can be mounted indoors or outdoors

    Range

    350 miles

    Environment

    Indoor and outdoor

    Price

    $32.99

    At less than $35, this digital TV antenna from QLZLLF (no, we don’t know how to pronounce that) offers excellent reception with a 350-mile signal pickup. Due to its tower design, this TV antenna might not be the first choice for those who want a more minimal option, but the extra space it takes will give you a better chance of picking up weak TV signals.

    The TV antenna tower can be placed on a TV stand or mounted high up on a wall for increased reception. We like that QLZLLF includes screws and wall studs with your purchase to help you with setup, but you will still need a power drill for wall installation. Alternatively, you can mount TV antennas outside for the best possible reception.

    We don’t see anyone mounting these TV antennas on their roof; instead, you can install it outside of your house if your walls prevent strong reception. For those with older homes or those lined with brick, you likely already know how walls can block out your signals.

    PBD WA-2608 Digital Amplified

    Best Outdoor TV Antenna

    Key Features

    • Includes mounting pole and 40 ft of coax cable
    • Includes remote rotation for best signal pickup
    • Supports simultaneous watching with 2 TVs

    PBD WA-2608 Digital Amplified

    Range

    150 miles

    Environment

    Outdoor

    Price

    $50.98

    So, you’re ready to go up on the roof and install one of the TV antennas you are eyeing. That’s dedication.

    Installing the PBD WA-2608 as high as possible will result in the best signal pickup. Don’t be fooled by the 150-mile rating of this antenna; you’ll pick up solid signals to enjoy your favorite channels.

    To help you with the installation, PBD has included a mounting pole and a 40-foot coaxial cable with your purchase. The antenna can be rotated upon its pole using an included remote, allowing you to face it in the direction of the station you wish to pick up for the greatest possible reception and reduced interference.

    If you have multiple televisions in your home, the WA-2608 might be a solid consideration, as the antenna can output two separate signals, allowing two televisions to watch different channels simultaneously. Watch sports in one room and the news in another.

    You won’t need to worry about TV antennas like these, which were designed for outdoor usage, being affected by the weather. The WA-2608 outdoor antenna features a weather-resistant design and is lightning protected. This outdoor antenna option from PBD is perfect for rural environments.

    1byone 360° Omni-Directional

    Best TV Antenna for Boats and RVs

    Key Features

    • Compact omnidirectional design
    • Shield protects against 4G/LTE interference
    • Includes 39-foot coax cable

    1byone 360° Omni-Directional

    Range

    100 miles

    Environment

    Outdoor

    Price

    $69.99

    If you plan to watch television using a digital antenna in a boat or RV, you should consider the 1byone 360° Omni-Directional antenna. The compact design allows the antenna to be mounted on your boat or RV without the worry of it being struck.

    The omnidirectional design of this 1byone outdoor TV antenna also helps to ensure that you pick up a signal no matter the direction your boat or RV is facing. Some antennas are directional, meaning you could lose the signal if you aren’t facing toward the transmitting tower — no worries about that here.

    The 1byone 360° Omni-Directional outdoor antenna is designed for harsh weather conditions and can withstand water, snow and lightning. A built-in amplifier helps the antenna pick up signals further, and an integrated 4G/LTE filter stops cellular signals from interfering.

    While we recommend this particular outdoor antenna for RVs and boats, it can also be used outside your home. No tools are needed for the installation, but 1byone does include a plastic wrench (spanner) with the antenna for ease.

    If you’re seeking content after cutting the cord, check out the best free TV apps that provide loads of content at no cost.

    ANTAN Indoor Window

    Best TV Antenna for Tight Budgets

    Key Features

    • Under $15 for those on a tight budget
    • Great for picking up local TV stations
    • Easy installation on wall or window

    Range

    45 miles

    Environment

    Indoor

    Price

    $13.99

    If you’re on a tight budget but still want to pick up a digital TV antenna, we’ve got an option that won’t make your wallet or purse cry. This indoor antenna from ANTAN comes in at less than $15 but still delivers a strong enough signal to pick up stations in your area.

    What makes this TV antenna cheaper is its lack of a built-in amplifier. As a result, the range of the ANTAN indoor antenna is only about 45 miles. We highly recommend checking out stations local to you using the FCC DTV Reception Maps webpage. With a short-range antenna such as this, plan to pick up only stations with excellent signal.

    If the limited range doesn’t bother you, you should enjoy the ANTAN antenna, which is flat and can be hung up on any wall or window. Included is a 16.5-foot coaxial cable — great for placing indoor TV antennas in the best possible spot while still reaching your television.

    Our Methodology

    To select the best digital TV antennas for our readers, we began by researching the available options on the market and their features. We found the essential details for each antenna: their overall range, mounting options and ability to withstand specific environments (outdoor vs. indoor antennas), such as the outdoors or on a moving vehicle.

    The criteria we established ensured we selected only amplified antennas with a pickup range of at least 100 miles, except for our budget pick. Even then, we ensured that the antenna could be easily mounted and pick up broadcast TV within an approximate 50-mile radius.

    We also provided antenna options for different situations, such as indoor or outdoor mounting and using a moving boat or RV. Our selection of digital TV antennas shows you the best options for each situation without overwhelming you with the rest.

    Frequently Asked Questions (FAQ)

    Which Antenna Works Best?

    Do More Expensive Antennas Work Better?

    For the most part, cheaper antennas work just as well as their more expensive counterparts. We found that amplification is the most crucial feature when selecting an antenna. Any amplified antenna will work much better than non-amplified ones when attempting to pick up television signals.

    Does a Higher Antenna Get Better Reception?

    Yes, in general, antennas that are placed higher do receive better reception. We recommend mounting any indoor antennas on the wall as high as possible or at the top of a window. Outdoor antennas are an even better solution, as they can be mounted on the roof for the best possible reception.

    Michael Archambault is a senior writer for The Penny Hoarder specializing in technology.


    michael.archambault@thepennyhoarder.com (Michael Archambault)

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  • Credit Card Debt Just Jumped to a Record High. Here’s How to Pay Off Yours

    Credit Card Debt Just Jumped to a Record High. Here’s How to Pay Off Yours

    The siren song of the credit card is music to our ears lately. When it comes time to pay the bills, we Americans are reaching for the plastic more than ever.

    With more people using credit cards to pay for food and rent, Americans’ total credit card debt reached a record $930 billion at the end of 2022, according to a new report from TransUnion. That’s a whopping 18.5% increase from the year before.

    (We’ve seen headlines in the past that put Americans’ total credit card debt at $1 trillion, but apparently TransUnion calculates it differently. TransUnion says this is a record. Anyway, credit card debt is way, way up.)

    Not only that, but the average credit card balance rose to $5,805, TransUnion says.

    This comes at a time when swiping your card has become more expensive than ever because credit card interest rates are rising crazy fast. The average APR on a credit card has climbed above 19% — the highest it’s ever been! It’s the most expensive kind of debt you can have.

    What can you do to cut your credit card debt? We’ve got some good ideas for that.

    But first…

    Maybe Bigger Changes Are Needed

    Hey, we’ve all been there with the credit card debt. There’s no shame. We’ve all gone through it.

    But if you’re using a credit card to afford groceries and make rent, that’s obviously a problem. That’s not sustainable. It might be time to make some significant changes.

    You could:

    • Look for cheaper digs. We know that’s easier said than done.
    • Shop at a cheaper grocery store. When we went looking for the cheapest groceries, we found that Aldi is even cheaper than Walmart. Also, here are our favorite tricks to save money on groceries.
    • Do some meal planning to eat healthy and save money. Here’s our guide on how to start meal planning so that you’ll actually stick to it.
    • Get a side gig. Here’s The Penny Hoarder’s continually updated page on work-from-home jobs.

    5 Ways to Eliminate Credit Card Debt

    Here’s our ultimate guide to paying off credit card debt. We’ll summarize five methods here:

    1. Debt Avalanche

    Pay off your credit cards that have the highest interest rates first. Doing that can save you a lot of money over time because you’ll be paying less interest. Learn more about the debt avalanche method here.

    2. Debt Snowball

    Pay off your credit cards that have the smallest balances first. This allows you to eliminate credit card balances faster, which can motivate you to keep going. Here’s how to use the debt snowball method.

    3. The Balance Transfer

    If you have good to excellent credit (typically a FICO score of 670 or above) and can feasibly pay off your debt within a year, a balance transfer credit card is a good option. Balance transfer credit cards can save you money on interest charges by letting you transfer the balance of a card with a high interest rate to a card with 0% interest. Most of these cards offer 0% interest for 12 to 18 months with no annual fee.

    Pro Tip

    Think a balance transfer card is the right move for your finances? We’ve put together a list of the best balance transfer cards currently available.

    4. Take Out a Loan

    You might look at getting a loan to consolidate and refinance your debts. If you get a loan with a lower interest rate and pay off your credit cards, that lower rate could potentially save you thousands of dollars in interest.

    This is a realistic way to pay off credit card debt if you currently have little or no money to put toward it. You could look into getting a personal loan or a home equity loan.

    Here’s our step-by-step guide to getting a personal loan. And here’s our guide to home equity loans and home equity lines of credit.

    A website called Fiona can match you with a low-interest loan you can use to pay off all your credit card balances.

    5. Debt Settlement

    The world of debt collections and creditors can be confusing. If you’re being harassed by creditors, don’t give up before finding out your options for assistance.

    Debt Management Program: With a debt management program, a credit counseling company will handle your consolidation in hopes of getting you a better interest rate and lower fees. Here’s an article comparing debt management to the strategy of debt consolidation.

    Pro Tip

    If you owe at least $10,000 in unsecured debt, a company called National Debt Relief will create a customized plan just for you. They’ll negotiate with your creditors to reduce the amount you owe.

    Credit Card Debt Settlement: If you’re in more than just a temporary season of financial instability, and you can’t see yourself affording the amount of credit card debt you owe, debt settlement is an option — although we regard it as a last resort before bankruptcy.

    Most people seek the help of a debt settlement company to do this. Debt settlement reduces the amount of debt you owe, but it will significantly lower your credit score and negatively impact your credit report.

    For more information about these options, check out our ultimate guide to paying off credit card debt.

    A final note of caution: Be careful when seeking help with debt settlement. While some companies are legitimately there to assist you, others take your money and do very little to help your situation.

    Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. He knows about credit card debt from personal experience.


    mike@thepennyhoarder.com (Mike Brassfield)

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  • You Shouldn’t Pay One Lousy Cent to File Your Taxes

    You Shouldn’t Pay One Lousy Cent to File Your Taxes

    Filing taxes in the United States could be free and simple for everyone — if only tax prep companies weren’t lobbying to keep it so complicated.

    The Internal Revenue Service and your state tax collectors already have access to most of the information you painstakingly report in a tax return because your employers and banks are required to provide it.

    We could, in theory, have a return-free system, where the IRS sends you that information and how much it believes you owe, and you don’t have to file anything unless you disagree with it.

    But we like a challenge, don’t we?

    Instead of this straightforward public service, we have the next best thing: A private system that helps the majority of Americans file a federal tax return for free.

    Except most of us don’t use it … because we don’t know it exists.

    The Free File Alliance MUST Let You File Taxes for Free

    The Free File Alliance is a public-private partnership between a group of tax software companies and the IRS. Seven companies are part of this agreement as of January 2023, according to its recent press release.

    The agreement says these companies have to provide the majority of Americans with a free way to prepare and file their taxes online. It also bars the IRS from providing its own free filing system — like that dreamy no-return scenario mentioned above.

    The problem, predictably, is that no one advertises the free services.

    The government has no budget to market it, and the for-profit tax preparers have no incentive to let you know about their free options — and every incentive to funnel you toward a paid option. And they use every opportunity, as ProPublica has reported repeatedly.

    The result is that most filers have no idea the option exists, and hardly anyone takes advantage of it.

    (BTW, we are happy to tell you all about those free tax filing services.)

    In 2020, the Alliance touted “soaring” participation — a 28% “jump” from 2.3 million filers in 2019 to 2.9 million in 2020. Sounds great, except more than 130 million taxpayers qualified for free filing through the program. That’s a participation rate of about 2% of eligible filers.

    How to Get Free Tax Filing Through the Free File Alliance

    This part is, in fact, easy once you know about it.

    To qualify, you have to earn below a certain income limit, which changes each year.

    For tax year 2022 (what you’ll file starting in 2023), anyone with an adjusted gross income of $73,000 or less qualifies for free filing through an IRS partner.

    The most popular services, TurboTax and H&R Block, have left the Alliance in recent years, and this year’s participating companies are a collection of mostly lesser-known online tax preparers:

    • 1040Now Corp.
    • ezTaxReturn.com (English and Spanish)
    • FileYourTaxes.com
    • OnLine Taxes
    • TaxAct
    • TaxHawk Inc.
    • TaxSlayer (English and Spanish)

    Choose a filing service through the IRS browsing tool to make sure you access the actually free versions of these services and avoid upsells to paid services. It’ll ask you some questions to help you determine which service is a good fit for your tax situation.

    Before you choose a service, read through the requirements for free filing. Some of them cap incomes as low as $39,000, or tack on an age requirement or state limitations. A few, but not many, throw in free state filing so you can avoid that surprise charge at the end of the process.

    Most importantly: Assume you can find a way to file for free. The agreement aims to make free filing available to 70% of Americans, so the odds are in your favor.

    Tax companies will make plenty of offers that tempt you to upgrade to a paid option — or make you believe you have no choice. But you do. They’ve barred our government from offering us that choice, and in return, they’re required to provide it themselves.

    We just have to make sure we can find it.

    Frequently Asked Questions (FAQ) About the Free File Alliance

    Here are our answers to some common questions about the Free File Alliance.

    Is Free File Alliance Legit?

    Yes, the Free File Alliance is a legitimate partnership between private tax prep companies and the IRS to provide free federal tax filing. It can be accessed through the IRS Free File Options page to ensure you get a tax preparer’s free version and can see any additional fees upfront.

    Which Companies Are Part of the Free File Alliance?

    Companies participating in the Free File Alliance change from year to year. In 2023, seven companies are participating: 1040Now, ezTaxReturn.com, FileYourTaxes.com, OnLine Taxes, TaxAct, TaxHawk Inc. and TaxSlayer.

    Is IRS Free File Really Free?

    Yes. If you qualify, you’ll pay nothing to file your federal tax return through a participating Free File company. For tax season 2022, you must have earned $73,000 or less to qualify, and you might face additional requirements or restrictions from individual tax companies. You’ll likely pay a fee to file a state return. Companies are required to list all non-qualifying fees on the landing page you access through the IRS Free File browsing tool.

    Is TurboTax Part of the Free File Alliance?

    As of 2021, TurboTax is no longer a member of the Free File Alliance. The company offers a free edition for filing simple returns, but read the details of TurboTax’s offers to see what’s included for free before filling out your return and facing surprise fees.

    What Is the Best Free Tax Filing Online?

    Most free online tax software companies are comparable in their offerings and requirements. Few of them offer only free filing, so you might not qualify for their free services. United Way’s MyFreeTaxes service lets anyone file online for free as long as you earned $73,000 or less (for tax year 2022), and you don’t have income from rental property or a farm. Cash App Taxes offers only free filing, so you can file through the app without worrying about being upsold.

    Dana Sitar (@danasitar) has been writing and editing since 2011, covering personal finance, careers and digital media. She was ticked off she didn’t know about the Free File Alliance and wants to make sure you don’t face the same fate. Freelancer Lauren Richardson contributed to this post. 


    dana@danamedia.co (Dana Miranda, CEPF®)

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  • The 20 Best Bank Promotions of February 2023

    The 20 Best Bank Promotions of February 2023

    So, you’re looking for a new bank account.

    You’ve got several factors to consider — ATM access, interest rates, monthly account fees, minimum balances, online bill payments and more.

    Another factor: sign-up bonuses. Banks and credit unions frequently run promotions to entice prospective customers to open a new account — and they often come with cash. You have to meet specific criteria, such as making a minimum opening deposit, and generally the account must remain open for a certain amount of time — at least long enough to earn the cash bonus.

    Many banks offer such sign-up bonuses, but often, they aren’t advertised. We did some digging to find the best bank promotions currently on offer.

    Best Bank Account Bonuses of February 2023

    Keep an eye on what each promotion requires, as well as any limitations. Recurring direct deposits and maintaining a minimum balance are common requirements in securing bank bonuses. Also pay attention to monthly maintenance fees; over time, these could easily exceed a one-time cash bonus.

    20 Bank Promotions That Give You Cash

    Bank Promo Payoffs Up to $600

    BANK TOP FEATURE BONUS
    Chime Referral Bonus No monthly fees $100 SEE DETAILS
    Alliant Credit Union Ultimate Opportunity Savings High yields $100 SEE DETAILS
    Huntington Perks Checking Quick cash bonus payout $200 SEE DETAILS
    Huntington Platinum Perks Checking Account Interest on checking $300 SEE DETAILS
    Albert Up to 20% cash back $150 SEE DETAILS
    Chase Total Checking Account Fees may be waived $200 SEE DETAILS
    Fifth Third Momentum Checking No hidden fees $325 SEE DETAILS
    TD Convenience Checking Basic checking account $200 or $400 SEE DETAILS
    TD Beyond Checking Free checks $300 or $500 SEE DETAILS
    Discover Bank Online Savings HIgh APY $150 or $200 SEE DETAILS
    M&T Bank EZChoice Checking Account No monthly fees $200 SEE DETAILS
    M&T Bank MyChoice Plus Checking Account Discounted loan rates $200 SEE DETAILS
    M&T Bank MyChoice Premium Checking Account Premium CD rates $200 SEE DETAILS
    Bank of America Advantage Banking Fees can be waived $100 SEE DETAILS
    SoFi Checking and Savings High APY Up to $250 SEE DETAILS
    BMO Harris Smart Advantage Account No fee for paperless $200 SEE DETAILS
    BMO Harris Smart Money Account No overdraft fees $200 SEE DETAILS
    BMO Harris Premier Account Unlimited ATM use $350 SEE DETAILS
    PNC Virtual Wallet Combination checking and savings Up to $400 SEE DETAILS
    Axos Rewards Checking High APY $100 SEE DETAILS

    Chime Referral Bonus

    Best for Helping Out a Friend

    Key Features

    • Must be current Chime account holder
    • No minimum daily balance
    • Good for first-time banking clients

    If you refer a friend and they open a new account and receive a direct deposit of at least $200 in the first 45 days, you will each receive $100. Make sure to use the referral link from your account to get the cash bonus. Referral bonuses are capped at $1,000 each calendar year.

    Chime Referral Bonus Account

    Bonus amount

    $100 per referral, plus $100 to the friend you refer

    How to get it

    Referred friend receives $200 direct deposit.

    When you get it

    Upon completion of requirements

    The fine print

    Be sure to use a unique referral link from your own account.

    Expiration

    None

    More Information About Chime Referral Bonus Account

    Though not technically a bank, Chime is becoming increasingly popular as an online financial institution for banking customers of all ages. Top features include early access to direct deposit, fee-free overdraft, 60,000+ ATMs, a 2.00% APY for the high-yield savings and plenty of features to automatically grow your savings.

    Alliant Ultimate Opportunity Savings

    Best for Fans of Suze Orman

    Key Features

    • $0 monthly fees with eStatements
    • High-yield savings account
    • Easy-to-track bonus criteria

    Not only does Alliant Credit Union’s Ultimate Opportunity Savings Account (in partnership with Suze Orman) have one of the best APYs currently available (2.95%), it pays out its bonus pretty easily. No massive balances or monthly direct deposits to think about.

    Alliant Opportunity Savings

    Bonus amount

    $100

    How to get it

    Deposit at least $100 a month for 12 months.

    When you get it

    Within four weeks of completion.

    More information

    Balance must be $1,200 at the end of 12 months.

    Expiration

    December 31, 2023

    More About Alliant Ultimate Opportunity Savings Account

    The Ultimate Opportunity Savings Account from Alliant Credit Union has a lot to like: 80,000+ fee-free ATMs, no monthly fees if you opt in to online statements, a leading mobile app, and a strong APY at 2.95%.

    Huntington Perks Checking

    Best for Quick Bonus Payout

    Key Features

    • Easily waivable monthly fee
    • Only available in certain states
    • Quick cash bonus payout

    This offer is only available to customers who live in CO, IL, IN, KY, MI, MN, OH, PA, SD, WV or WI. The Huntington Perks Checking account earns interest (but only 0.02%) and charges a $10 monthly fee. That fee is easy to waive, however, as long as you receive $1,000 in monthly deposits or maintain $5,000 total across all your Huntington accounts

    Huntington Perks Checking

    Bonus amount

    $200

    How to get it

    Open a new account and make cumulative new deposits totaling $1,000 within the first 60 days.

    When you get it

    Within 14 days of meeting bonus criteria.

    More information

    Account must remain open for at least 90 days.

    Expiration

    June 7, 2023

    More Information About Huntington Perks

    Huntington’s Perks Checking account pays out nominal interest (0.02%), but the easily waivable monthly maintenance fee makes it appealing for an easy checking account. Key features include mobile banking, five fee-free out-of-network ATM withdrawals, the No Overdraft Fee $50 Safety Zone and the 24-Hour Grace Overdraft and Return Fee Relief.

    “New account” is defined as money not currently in another Huntington account; money transferred from one account to another does not qualify. The bonus offer cannot be combined with any other checking offer.

    Huntington Platinum Perks Checking

    Largest Bonus Payout

    Key Features

    • $25 monthly fee (can be waived)
    • Interest-earning checking
    • Quick cash bonus payout

    This offer is only available to customers who live in CO, IL, IN, KY, MI, MN, OH, PA, SD, WV or WI. This account earns interest (currently a 0.03% APY, which is quite low). It also has a monthly maintenance fee of $25, which is waived if you have at least $25,000 across every Huntington bank account.

    Huntington Platinum Perks Checking

    Bonus amount

    $300

    How to get it

    Open a new account and make deposits totaling $25,000 within the first 60 days.

    When you get it

    Within 14 days of meeting bonus criteria.

    More information

    Account must remain open for at least 90 days.

    Expiration

    June 7, 2023

    More Information About Huntington Platinum Perks Checking

    While the Huntington Platinum Perks account does have a monthly $25 fee, you can waive it by having $25,000 across accounts with Huntington. By upgrading to this account, you’ll get a higher bonus, get unlimited fee-free ATM withdrawals and earn 0.03% interest on your balance.

    “New account” is defined as money not currently in another Huntington account; money transferred from one account to another does not qualify. The bonus offer cannot be combined with any other checking offer.

    Albert Accounts

    Best for Cash Back

    Key Features

    • Up to 20% cash back
    • Geniuses for personal finance questions
    • No fees or investment commissions

    Albert is an all-purpose personal finance app that lets you spend, save and invest your money. There are no monthly maintenance fees, no minimum balances and no commissions (if you choose to invest). While you won’t earn a traditional APY, Albert gives users a 0.10% annual cash bonus on funds in savings, plus up to 20% cash back. New members are eligible for a $150 bonus.

    Albert Accounts

    Bonus

    $150

    How you get it

    Receive a qualifying direct deposit of at least $500 within 45 days and then every 30 days for 90 days

    When you get it

    Upon meeting requirements over a 90-day period

    More information

    Must be new to Albert

    Expiration

    None

    More Information About Albert Accounts

    Members of Albert don’t have to worry about monthly fees or minimum balances, and they can take advantage of several cool features, like 55,000+ fee-free ATMs, early paycheck access, cashback rewards, Smart Savings (automatically analyzes your money and helps you to save), unlimited transfers, annual cash bonuses, the ability to invest, and a cash advance up to $250 (no interest, no credit check) instead of overdraft fees. Perhaps the coolest part is daily access to finance experts called Geniuses; pay what you think is fair for their advice. Just keep in mind that Albert is not a bank but an app (banking services are provided by Sutton Bank, Member FDIC).F

    Chase Total Checking

    Best for Basic Checking

    Key Features

    • $12 monthly fee
    • Fee waived by meeting conditions
    • Basic checking

    The Total Checking account carries a $12 monthly service fee, but you can have it waived if you receive monthly direct deposits totaling $500 or more, keep a daily minimum balance of at least $1,500 in your new checking account, or keep a daily minimum balance across all your Chase bank accounts of at least $5,000. Direct deposit via person-to-person payment apps do not qualify. Chase offers access to 16,000 ATMs and more than 4,700 branches.

    Chase Total Checking Account

    Bonus amount

    $200

    How to get it

    Receive a qualifying direct deposit within 90 days of account opening.

    When you get it

    Within 15 days of meeting requirements

    More information

    $12 monthly fee, which can be waived.

    Expiration

    April 19, 2023

    More Information About Chase Total Checking Account

    The Chase Total Checking account gets you access to more than 4,700 branches nationwide, plus 16,000 ATMs. The easy-to-use mobile app is highly rated. While Chase does charge a $12 monthly service fee, you can waive it by earning $500+ in monthly direct deposits, maintaining a daily balance of $1,500+ or having $5,000 across all your Chase accounts at the start of each day.

    Fifth Third Momentum Checking

    Best for Early Paycheck Access

    Key Features

    • No monthly or hidden fees
    • Early access to paycheck
    • Overdraft avoidance feature

    Fifth Third Bank is a regional bank with a decent checking account. Its lack of fees, Extra Time overdraft fee avoidance feature, fraud protection, early access to paychecks and physical branches are all highlights, but its lack of APY (you can upgrade to Preferred Checking to earn interest, but it’s only 0.01% APY) and limited branch network (FL, GA, IL, IN, KY, , MI, NC, OH, SC, TN, and WV) work against the bank.

    Fifth Third Checking Account

    Bonus amount

    $325

    How to get it

    Open a new account and make direct deposits totaling $500 or more within the first 90 days.

    When you get it

    Within 10 days of meeting bonus criteria

    More information

    Must apply online or visit website to generate unique offer code to apply in person

    Expiration

    March 31, 2023

    More About Fifth Third Checking Account

    Fifth Third’s checking account boasts immediate funds for all check deposits, Extra Time for overdraft fee avoidance, early paycheck access, no minimum balance and no hidden fees. The account also offers basic fraud protection services and unlimited check writing.

    TD Bank Convenience Checking

    Best for Young Customers

    Key Features

    • Easy to waive monthly fee
    • Easy-to-use mobile app
    • No overdraft fees for 17 to 23 year olds

    TD Convenience Checking is not a glamorous checking account. It doesn’t earn interest, and there aren’t any cash back rewards. However, it’s easy to waive the $15 monthly maintenance fee: Just maintain a $100 minimum balance. Customers who are 17 to 23 years of age automatically have the fee waived and don’t have to pay fees for overdrafts. New customers earn $200 by receiving $500 in qualifying direct deposits within 60 days; earn an additional $200 when you open a linked savings account (Beyond Savings or Simple Savings) and deposit $10,000+ in the first 20 days.

    TD Bank Convenience Checking Account

    Bonus amount

    $200 or $400

    How to get it

    Meet direct deposit qualifications ($500 within 60 days) to earn $200; add savings account for additional $200

    When you get it

    No later than 180 days after account opening.

    More information

    For savings bonus, you must maintain a daily balance of $10,000+ for 90 days.

    Expiration

    February 28, 2023

    More Information about TD Bank Convenience Checking

    The TD Convenience Checking account is a great account for first-time banking customers. There are no monthly fees or overdraft fees for members who are 17 to 23. However, you cannot earn interest on this account. If you are over 23, there is a $15 fee, which you can waive by maintaining a $100 daily balance.

    TD Bank Beyond Checking

    Best for Overdrafters

    Key Features

    • Two overdraft fee forgivenesses
    • Free checks
    • Fee reimbursement for out-of-network ATMs

    TD Beyond Checking offers more perks than the Convenience Checking, including two fee-free overdrafts per year, out-of-network ATM fee reimbursements, and free checks. The account does earn interest, but the monthly fee is higher ($25) and harder to waive. Bonus terms for the TD Beyond Checking are similar; coupled with the savings promotion, you could earn $500.

    TD Bank Beyond Checking Account

    Bonus amount

    $300 or $500

    How to get it

    Meet direct deposit qualifications ($2,500/60 days) to earn $300; add a savings account for additional $200.

    When you get it

    Within 180 days of opening.

    More information

    For savings bonus, you must maintain a daily balance of $10,000+ for 90 days.

    Expiration

    February 28, 2023

    More Information About TD Bank Beyond Checking

    The TD Beyond Checking account is great for unique perks, like free checks, ATM fee reimbursement, and overdraft fee coverage (two a year). To waive the monthly $25 fee, you’ll need to earn $5,000 in direct deposits each month, maintain a $2,500 minimum balance in the checking account or maintain a $25,000 balance across all TD accounts.

    Discover Bank Online Savings

    Best for Big Savers

    Key Features

    • High-yield savings account (3.30% APY)
    • No monthly fees or minimum opening deposit
    • No insufficient funds fees

    Discover Bank’s Online Savings Account offers one of the highest APYs on our list. You can also pair the account with the Discover Bank Cashback Debit account (one of the best online checking accounts of 2022). However, the deposit amounts to earn the bonus are quite high, making the bonus offer far less achievable for most.

    Discover Bank Online Savings Account

    Bonus amount

    $150 or $200

    How to get it

    Open an account using code CY323 and deposit at least $15,000 for $150 or $25,000 or $200 within 30 days

    When you get it

    Within 30 days of meeting bonus criteria

    More information

    Must be a first-time Discover savings account customer; current and prior customers are not eligible.

    Expiration

    March 15, 2023

    More Information About Discover Bank Online Savings Account

    The Discover Bank Online Savings Account offers a competitive APY (3.30%) with interest compounded daily instead of monthly. There’s no monthly fee with Discover, no minimum deposit and no insufficient funds fee. All in all, not a bad offer.

    M&T Bank EZChoice Checking

    Best for Beginners

    Key Features

    • No monthly maintenance fees
    • Unlimited check writing
    • Physical branches

    The EZChoice Checking account from M&T Bank is the most basic package offered. It’s great for beginners because it has no monthly maintenance charge and no monthly minimum balance requirement. Plus, there’s unlimited check writing. You will need $25 to open the account and have qualifying direct deposits totaling at least $500 within the first 90 days to earn the bonus. This offer is only valid in select states.

    M&T Bank EZChoice Checking

    Bonus amount

    $200

    How you get it

    Make qualifying direct deposits totaling at least $500 within 90 days of opening the account.

    Whey you get it

    Within 90 days after the direct deposit.

    The fine print

    There’s a $50 early close-out fee if you close the account within 180 days of opening.

    Expiration

    April 30, 2023

    More Information About M&T Bank EZChoice Checking

    M&T Bank has more than 700 branches and 1,800 ATMs with operations in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virgina, West Virginia, Vermont, Massachusetts and Washington, DC, but you can also do your banking entirely online.

    M&T Bank MyChoice Plus Checking

    Best for Loan Seekers

    Key Features

    • Discounted loan rates
    • ATM fee reimbursement
    • Interest-bearing options

    The MyChoice Plus Checking account from M&T Bank requires extra work to avoid a monthly fee ($14.95): Either maintain an average daily balance of $2,500 or receive $1,500 in direct deposits each month. With this account, you qualify for discounted loan rates with M&T. You will need $25 to open the account and have qualifying direct deposits totaling at least $500 within the first 90 days to earn the bonus. This offer is only valid in select states.

    M&T Bank MyChoice Plus Checking

    Bonus amount

    $200

    How you get it

    Make qualifying direct deposits totaling at least $500 within 90 days of opening the account.

    When you get it

    Within 90 days after the direct deposit.

    The fine print

    There’s a $50 early close-out fee if you close the account within 180 days of opening.

    Expiration

    March 31, 2023

    More Information About M&T Bank MyChoice Plus Checking Account

    M&T Bank has more than 700 branches and 1,800 ATMs with operations in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virgina, West Virginia, Vermont, Massachusetts and Washington, DC, but you can also do your banking entirely online.

    M&T Bank MyChoice Premium Checking

    Best for CD Rates

    Key Features

    • Discounted loan and premium CD rates
    • ATM fee reimbursement
    • Interest-bearing checking

    The MyChoice Plus Checking account from M&T Bank requires extra work to avoid a monthly fee ($24.95): Either maintain an average daily balance of $7,500 or $25,500 across all M&T accounts. With this account, you qualify for discounted loan rates and premium CD rates with M&T. You will need $25 to open the account and have qualifying direct deposits totaling at least $500 within the first 90 days to earn the bonus. This offer is only valid in select states.

    M&T Bank MyChoice Premium Checking

    Bonus amount

    $250

    How to get it

    Make qualifying direct deposits totaling at least $500 within 90 days of opening the account.

    When you get it

    Within 90 days after the direct deposit.

    More information

    There’s a $50 early close-out fee if you close the account within 180 days of opening.

    Expiration

    April 30, 2023

    More Information About M&T Bank MyChoice Premium Checking

    M&T Bank has more than 700 branches and 1,800 ATMs with operations in New York, Maryland, New Jersey, Pennsylvania, Delaware, Connecticut, Virgina, West Virginia, Vermont, Massachusetts and Washington, DC, but you can also do your banking entirely online.

    Bank of America Advantage Banking

    Best for Standard Checking

    Key Features

    • Monthly maintenance fees (very by account)
    • Standard checking accounts
    • Fees can be waived

    Open your new checking account online using the promo code DMF100CIS. Qualifying direct deposit must be regular monthly income, such as salary or pension payments. Advantage Banking checking accounts come in three levels: SafeBalance, Plus and Relationship. All three carry monthly maintenance fees that can be waived by meeting direct deposit and minimum balance requirements.

    Bank of America Advantage

    Bonus amount

    $100

    How to get it

    Receive direct deposits of at least $1,000 within 90 days.

    When you get it

    Within 60 days of completing requirements.

    More information

    Monthly fees can be waived

    Expiration

    June 30, 2023

    More Information About Bank of America Advantage

     

    Bank of America’s Advantage account is broken into three tiers: SafeBalance Banking, Plus Banking, and Relationship Banking. SafeBalance boasts no overdraft fees or non-sufficient funds fees; Plus offers multiple ways to waive the monthly service fee; and Relationship earns interest (though the percentage is quite low).

    SoFi Checking and Savings Account

    Best for High APY

    Key Features

    • Up to 3.75% APY
    • Fee-free overdraft coverage
    • Early access to paycheck

    The SoFi bank account currently has the highest APY of any account on our list. Plus, it has one of the highest new customer bank bonus offers: up to $250. Other highlights of this account include early access to your paycheck with direct deposit, no-fee overdraft coverage, automatic saving features and up to 15% cash back when you shop local. Plus, there are no monthly account fees.

    SoFi Checking and Savings Account

    Bonus amount

    Up to $250

    How to get it

    Earn qualifying direct deposits totaling $5,000+ within 25 days.

    When you get it

    Within 14 days of the end of the 25-day evaluation period.

    The fine print

    Direct deposits totaling $1,000 to $4,999 for $250 bonus; $1,000 to $1,999 for $50 bonus.

    Expiration

    March 31, 2023

    More Information About SoFi Checkings and Savings

    SoFi’s online bank account certainly rewards members for spending and saving. The account, which doubles as a checking and savings account, allows you to organize your savings into vaults so you can work toward your goals. You’ll earn 3.75% APY on money in savings and 2.50% on checking funds, and when you shop local, you can earn up to 15% cash back. The bonus is tiered; to get the full $250 bonus, make sure your qualifying direct deposits total $5,000 or more.

    BMO Harris Smart Advantage Account

    Best for Fee-Free ATM Network

    Key Features

    • No monthly fee if you go paperless
    • Standard checking account
    • Fee-free transactions at 40,000+ ATMs

    Get a $200 bonus for opening a new BMO Harris Smart Advantage account and earning at least $4,000 in qualifying direct deposits within 90 days. This entry-level account grants you unlimited fee-free transactions at over 40,000 in-network Allpoint ATMs and 1,400 BMO Harris ATMs in the US. The bank has physical branches in IN, IL, AZ, MO, MN, KS, FL and WI, though you can open an account online.

    BMO Harris Smart Advantage Account

    Bonus amount

    $200

    How you get it

    Receive direct deposits of at least $4,000 within 90 days.

    When you get it

    Approximately 100 days after opening.

    More information

    Monthly fees can be waived with paperless statements.

    Expiration

    May 12, 2023

    More Information About BMO Harris Smart Advantage

    Smart Advantage is BMO Harris’ most popular checking account. It requires no minimum balance, charges no monthly fees when you opt for paperless statements and gets you fee-free access to 40,000+ ATMs nationwide with the Allpoint network.

    BMO Harris Smart Money Account

    Best for No Minimum Balance

    Key Features

    • No monthly maintenance fees if under 25
    • Standard checking account
    • No overdraft or NSF fees

    Get a $200 bonus for opening a new BMO Harris Smart Money account and earning at least $4,000 in qualifying direct deposits within 90 days. This standard account grants you unlimited fee-free transactions at over 40,000 in-network Allpoint ATMs and 1,400 BMO Harris ATMs in the US. The bank has physical branches in IN, IL, AZ, MO, MN, KS, FL and WI, though you can open an account online.

    BMO Harris Smart Money Account

    Bonus amount

    $200

    How to get it

    Receive direct deposits of at least $4,000 within 90 days.

    When you get it

    Approximately 100 days after opening.

    More information

    There is a monthly fee if you’re over 25.

    Expiration

    May 12, 2023

    More Information About BMO Harris Smart Money Account

    Like Smart Advantage, BMO Harris’ Smart Money has no minimum balance required. It’s also noteworthy for having no overdraft or NSF fees. With this account, you will get unlimited fee-free transactions at in-network ATMs (40,000+ nationwide). However, you’ll pay a monthly fee if you’re 25 or older.

    BMO Harris Premier Account

    Best for High Interest Possibility

    Key Features

    • Interest tied to balance
    • High-yield checking account
    • Unlimited ATM transactions

    Get a $350 bonus for opening a BMO Harris Premier account and earning at least $7,500 in qualifying direct deposits within 90 days. The more you have in the account, the more interest you earn. Monthly maintenance fees can be waived if certain requirements are met. The bank has physical branches in IN, IL, AZ, MO, MN, KS, FL and WI, though you can open an account online.

    BMO Harris Premier Account

    Bonus amount

    $350

    How to get it

    Receive direct deposits of at least $7,500 within 90 days.

    When you get it

    Approximately 100 days after opening.

    More information

    There is a monthly fee.

    Expiration

    May 12, 2023

    More Information About BMO Harris Premier

    The highest bonus at BMO Harris comes from the Premier Account with Relationship Packages that reward you with more perks for banking more with BMO. The account earns interest, and the amount you earn increases with the amount of funds in the account. You also get unlimited access to any ATMs, in-network or not.

    PNC Virtual Wallet

    Best for ATM Power Users

    Key Features

    • Geographic based
    • No minimum balance to open
    • Digital financial tools

    The PNC Virtual Wallet includes three different Spend accounts: the baseline account, Performance Spend and Performance Select. All three require no minimum balance to open and get access to 60,000 ATMs nationwide; the premium Performance Select account also reimburses fees at out-of-network ATMs.

    PNC Virtual Wallet

    Bonus amount

    Up to $400

    How to get it

    Qualifying direct deposits must be received within 60 days of account opening

    When you get it

    60 to 90 days after meeting bonus conditions

    The fine print

    Monthly service fees ranging from $7 to $25 if conditions aren’t met

    Expiration

    Jan. 2, 2023

    More Information About PNC Virtual Wallet

    PNC bonus offers are based on the type of account you open and receipt of qualifying direct deposit. This offer is good in specific states throughout the country. Your ZIP Code will be used to determine if you are in a participating state.

    You’ll earn:

    • $50 when you open and use a base Virtual Wallet account.
    • $200 when you open and use Virtual Wallet with Performance Spend.
    • $400 when you open and use Virtual Wallet with Performance Select.

    To waive the Virtual Wallet monthly maintenance fee ($7), earn $500+ in monthly direct deposits to the Spend account or maintain a $500+ monthly balance across the Spend + Reserve accounts. If you’re 62 or older, the fee is automatically waived. Waiving fees on Performance Spend and Performance Select is also possible, if you meet specific criteria.

    Axos Rewards Checking Account

    Best for Unlimited ATM Reimbursements

    Key Features

    • No monthly balance requirements
    • No overdraft or NSF fees
    • Up to 1.25% APY

    Axos continues to land on our roundup of best online checking accounts because of the high APY (up to 1.25% APY), lack of overdraft fees and unlimited domestic ATM fee reimbursement. With Axos, you’ll have zero monthly maintenance fees, and it only takes $50 to open.

    Axos Rewards Checking Account

    Bonus amount

    $100

    How to get it

    Open new account with code RC100 and set up direct deposits of at least $1,500.

    When you get it

    Within 30 days of the 90-day waiting period

    The fine print

    The full 1.25% APY requires additional accounts (loan and investment).

    Expiration

    March 31, 2023

    More Information About Axos Reward Checking

    The Axos Reward Checking is one of the accounts on this list that is so good that we would recommend considering it even without the bonus. In fact, it’s ranked one of the best online banks for 2023.

    If you are tired of overdraft fees, want real earning potential from your checking account and frequently utilize an ATM, this is the bank to go with, as long as you’re OK with an online-only experience.

    How to Search for Bank Account Bonuses on Your Own

    Instead of listing approximately 193 bank promotions, we kept this list short and sweet — only highlighting the best bank promotions for checking and savings accounts.

    But maybe you’re interested in banking with your local credit union, opening a small business checking account or exploring what investment accounts are available. There are often cash bonuses attached to these accounts too.

    Banks don’t always make finding these promotions easy, so here are a few tips to help you get your hands on that cash bonus.

    • Check the bank website first. Sometimes it’ll advertise its offers with a blaring promo code. This is rare, but it’s worth a quick check — it could save you a ton of time.
    • Reach out to customer service. Let them know you’re shopping for a new account, and you’d like to know if the bank is running any promotions. More often than not, the nice representative will send you a special link.
    • Google the best bank account bonuses. You’ll likely dig up some offers from third-party sites, so make sure the offer:
    • Hasn’t expired.
    • Is legitimate. Make sure the bank is FDIC-insured and has a positive Better Business Bureau rating. Read some online reviews.
    • Doesn’t require outrageous qualifying activities. For example, it might not be realistic for you to maintain an average daily balance of $50,000.
    • Reach out to your own network to crowdsource bank recommendations. Sometimes banks have impressive referral programs, so both you and your friend could benefit from you signing up.

    Overall, be smart. Don’t let the promise of a cash bonus blind you. Read the fine print so you don’t get stuck paying high monthly fees, interest rates or closing penalties.

    Will Opening a Bank Account Hurt Your Credit Score?

    If you’re worried that opening a new bank account or closing an old one will hurt your credit score, don’t be. Your bank accounts are not included in your credit report and therefore have no effect on your credit score, unless you have an outstanding negative balance that the bank turns over to a collection agency.

    Sometimes when you go to open a new bank account, banks will do a soft credit check. However, that won’t affect your credit score.

    Timothy Moore covers bank accounts for The Penny Hoarder from his home base in Cincinnati. He has worked in editing and graphic design for a marketing agency, a global research firm and a major print publication. He covers a variety of other topics, including insurance, taxes, retirement and budgeting and has worked in the field since 2012.

    Editorial Disclosure: This content is not provided by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.


    tmoorefreelance@gmail.com (Timothy Moore)

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  • Switch From Google to Bing and Start Earning Free Gift Cards

    Switch From Google to Bing and Start Earning Free Gift Cards

    When it’s time to search the web, approximately 85% of users turn to Google. It’s such a prevalent search engine that we’ve turned its usage into a verb — Googling. But other options are available, and some will pay you to use them.

    Microsoft’s search competitor, Bing, holds a bit under 10% of the market, but if you decide to switch, you’ll find fantastic benefits. Thanks to Microsoft Rewards, you can earn points to redeem gift cards every time you search.

    Let’s take a break from Google and dive into Bing to see how you can reap the rewards from some of your favorite companies, including the Microsoft Store, Starbucks, Amazon and Grubhub.

    What Is the Microsoft Rewards Program?

    Microsoft Rewards is the software giant’s loyalty program, which offers benefits in exchange for using services such as Bing or Microsoft Edge. As you use specific Microsoft products, you’ll earn points that can then be redeemed for select rewards. Gift cards are our favorite offering and are available for a wide selection of places such as:

    • Microsoft Store
    • Xbox Games
    • Starbucks
    • Burger King
    • Domino’s
    • Sephora
    • Target
    • Walmart
    • Hulu
    • Dunkin’ Donuts
    • Amazon.com
    • REI
    • Taco Bell
    • Grubhub
    • DoorDash
    • Uber Eats
    • Spotify

    If gift cards aren’t your thing, you can enter sweepstakes for more elaborate prizes, such as a brand-new Xbox Series X, a Microsoft Surface Pro tablet, a $5,000 Amazon gift card or even a chance to meet WNBA star Rhyne Howard. Charitable donations are also an option if you feel generous with your reward points.

    How to Earn Microsoft Rewards Points

    Earning points with Microsoft Rewards is simple. Visit Bing.com and ensure that you are logged in with a Microsoft account — you can do so by clicking on the profile icon in the upper right corner.

    Once logged in, you will notice an award icon at the top of the Bing homepage; your profile and a notification icon flank it. The award icon will notify you of how many points you have earned and how close you are to your goal.

    Click on the award icon to see a breakdown of how many points you earned and additional activities you can take part in to earn points. You can earn 150 points a day using Bing on your PC, 100 points a day using Bing on your smartphone and 20 points for utilizing the Microsoft Edge web browser.

    In our testing, we found that every web search we performed awarded us an additional five points. If you’re a student or someone who frequently conducts research using a search engine, you’ll earn points quite rapidly.

    We also recommend participating in those additional daily activities that we mentioned are accessible by clicking on the award icon. To see a complete list of daily tasks that you can complete, click on your dashboard for all the details. We found it easy to earn points (nearly 150 extra) by clicking on links and taking short quizzes — no email address required.

    How to Redeem Microsoft Rewards Points

    There is no point in earning Microsoft Rewards points if you aren’t going to use them. By heading to your Rewards Dashboard (aka the rewards page) and clicking on the Redeem tab at the top of the page, you can “cash in” your points for prizes — it’s just like being at the arcade!

    We found three primary rewards available from the program: gift cards, sweepstakes and donations. With gift cards, you are cashing in a voucher to one of your favorite companies or services (what could be better than free coffee?). We found that most $5 gift cards (5,000 points) can be acquired after only a few weeks of searching the net as you normally might.

    Alternatively, you can enter a sweepstakes to win a more elaborate prize.

    Donating to charity is a third option for those with a heart of gold. You can donate your points, which Microsoft will convert into a cash donation, to a charitable organization. Some notable organizations available include Teach for America, the Nature Conservancy, the Trevor Project and St. Jude Children’s Research Hospital.

    Want to give to your favorite charities automatically? By visiting the Give with Bing page, you can set your account up to automatically have earned rewards points donated. If you want to promote your cause, Bing can even help you create free promotional material.

    Is Bing Better Than Google?

    If you’ve seen an ad for Bing, you may have taken a moment to wonder whether it’s a viable alternative to Google. Microsoft Rewards is a compelling way to move Googlers over into the world of Microsoft, but users won’t stay long unless the search engine delivers results.

    We’ve tested Google and Bing for quite some time and have found that both search engines perform about equally with general searches. Google tends to have an advantage in our testing when it comes to surfacing answers for more niche topics. Still, both offer a solid everyday search experience for the typical user.

    Microsoft Rewards may be a tempting offer to switch over to Bing and earn points; we don’t think you’ll have many regrets if you do. We especially enjoy the daily Bing image, which is an aesthetically pleasing alternative to Google’s plain homepage.

    If you wish to compare Google vs. Bing side by side, check out a website like bvsg.org, which lets you see precisely what each search engine will surface for a query. The results might surprise you.

    Pro Tip

    If you prefer to use an app on your smartphone to carry out web searches and earn Microsoft Rewards, Bing provides options for Android and iOS devices.

    Frequently Asked Questions (FAQ)

    How Do I Get Microsoft Rewards With Bing?

    Searching with Bing is the easiest way to earn Microsoft Rewards points. Make sure that you are logged into your Microsoft account on the Bing homepage and begin searching. You can earn up to 150 points per day when searching on your computer and up to 100 points per day on mobile.

    Does Microsoft Rewards Actually Give You Stuff?

    Microsoft Rewards does, indeed, give you free stuff, including gift cards to popular retailers, restaurants, the Microsoft Store and more. When you use Bing, Microsoft can monetize your searches (in the same way Google does) and produce a profit. Microsoft Rewards passes on some of this money to you in exchange for using the service.

    How Do I Check My Bing Rewards?

    While signed into your Microsoft account, check your rewards points by visiting the Bing homepage and looking for the rewards icon. Next to the icon will be a number representing your current point balance. You can also visit the Microsoft Rewards Dashboard (aka the rewards page).

    Are Bing Rewards Worth It?

    Microsoft Rewards, which offers points and gifts in exchange for using Bing, can be worth it. We found Bing’s search engine results to be on par with Google’s. The best way to see if Bing is worth it is to use the service yourself and earn points.

    Can You Get Robux With Microsoft Rewards?

    Yes, you can earn Robux for the popular Roblox game platform. Microsoft is currently offering a special promotion in which you can get a 100 Robux digital card by signing up for Microsoft Rewards and searching with Bing using Microsoft Edge for five days.

    Is There a Microsoft Rewards App?

    There is no dedicated Microsoft Rewards app, but you can earn points and check your program status using the Bing app for Android and iOS. If you are serious about earning Microsoft Rewards points fast, it’s not a bad idea to keep it on hand.

    Michael Archambault is a senior writer with The Penny Hoarder specializing in technology.


    michael.archambault@thepennyhoarder.com (Michael Archambault)

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  • 9 Tax Breaks Parents Can Get for Claiming Kids on Taxes

    9 Tax Breaks Parents Can Get for Claiming Kids on Taxes

    Does the thought of doing your taxes on top of caring for your kids make your head spin?

    Take a deep breath: We found nine tax breaks for parents.

    Whether your children are swaddled newborns or seeking college degrees or whether you’re single, married with kids or adopted this year, you’re eligible to get some money back on tax day.

    9 Benefits and Tax Credits for Parents

    Here are the top tax credits and deductions for parents to keep in mind.

    1. Out-of-Pocket Medical Expenses Related to Pregnancy

    If you had a baby last year, paid out of pocket for medical expenses during your pregnancy and were never reimbursed, you’ll be able to itemize those amounts as deductions.

    As of 2022, this tax code requires the expenses exceed 7.5% of your adjusted gross income. That might seem unreachable, but since you’ll be billed item by item for prenatal care and childbirth, it can start to add up.

    2. Child Tax Credit

    As soon as your child is born, you’re eligible for the Child Tax Credit, which pays up to $3,600 for every child under the age of 17, depending on your income.

    This might seem obvious, but it’s important to note: Even if your child is born on Dec. 31, you can still claim them for that year.

    The credit is between $2,000 to $3,000 per child for children between the age of 6 and 17, and from $2,000 to $3,600 for children under the age of 6. All working families will get the full credit if they make up to $150,000 per couple or $112,500 for a single-parent family.

    3. Adoption Tax Credit

    The adoption process is notorious for being lengthy and expensive.

    The Adoption Tax Credit is worth up to $14,890 per child to help you alleviate that financial strain. This credit covers adoption fees, court costs and attorney fees, travel expenses and related expenses.

    4. Earned Income Tax Credit

    If you earned income last year but didn’t exceed certain thresholds, you may qualify for the Earned Income Tax Credit, which can significantly reduce your tax bill.

    The income limits depend on your filing status and how many children you have. For example, if you’re filing as single or head of household and have one qualifying child, you must have earned less than $43,492. If you’re filing jointly with your spouse and have three qualifying children, you must have earned less than $59,187.

    The maximum amounts of credit vary slightly each year. For the 2022 tax year, the maximum amounts of credit were:

    • $6,935 for three or more qualifying children
    • $6,164 with two qualifying children
    • $3,733 with one qualifying child

    Note: You can also qualify for the Earned Income Tax Credit without having a child.

    5. Child Care Tax Credit

    The cost for center-based daycare for one child can range anywhere between $221 per week for a family care center to $226 per week for a daycare or child care center, according to a 2021 survey by Care.com.

    If you’re paying for child care, you may be able to get a chunk of that back on your taxes.

    If your child is younger than 13 years old and you pay for child care while you’re either working or looking for work, you qualify for the Child and Dependent Care Tax Credit. According to the IRS, the amount of the credit varies. It is a percentage based on the amount of work-related expenses you paid to a care provider for the care of a qualifying individual.

    In 2022, the amount of expenses you can use to calculate the credit can be no more than $3,000 for one qualifying individual and no more than $6,000 for two or more qualifying individuals.

    Pro Tip

    If you are worried about making mistakes when filing, we highly recommend using tax software like TurboTax or H&R Block.

    6. Head-of-Household Status

    If you’re single and have a child, don’t overlook this crucial item: your status.

    If you file as a head of household, you’re automatically eligible for a lower tax rate than if you file as single.

    To be considered the head of household, you must:

    • Be unmarried or considered unmarried on Dec. 31.
    • Contribute more than 50% of the financial support of the household.
    • Have a dependent who lives with you for more than six months of the year.

    We have more details about head-of-household status affects plus answers to frequently asked questions

    7. American Opportunity Tax Credit

    During the first four years of your child’s college education, you can claim up to $2,500 for tuition and related expenses under the American Opportunity Tax Credit.

    Your child must attend college at least part time. The income threshold for individual parents is $80,000; married couples must earn no more than $160,000.

    8. Lifetime Learning Credit

    Unlike the American Opportunity Tax Credit, there is no limit to the number of times you can claim the Lifetime Learning Credit for education costs to lower your tax bill.

    Worth up to $2,000, the LLC covers tuition and related expenses.

    To qualify, your modified adjusted gross income must be less than $90,000 (or $180,000 if you’re filing jointly with your spouse).

    Note: You can’t claim the AOTC and the LLC for the same person in a single year. Also, the AOTC is per student, while the LLC is per family.

    9. State Tax Credits for Parents With Kids in Elementary or High School

    Some states offer benefits for certain items or activities during the school year.

    In Arizona, for example, if your kids attend public school, you’re eligible for a tax credit for any fees related to extracurricular activities, including sports equipment or uniforms. You can even qualify for the credit if you spent money on their SAT/ACT tests or prep classes.

    While it won’t affect your federal return, you should check to see if your state offers any tax credits, before filing your state taxes.

    Other Parent-Child Tax Items to Consider

    Ask yourself two more questions before filing your return, putting up your feet and enjoying a well-deserved break.

    Which Parent Should Claim the Child?

    A tricky part of being separated or divorced is figuring out who is supposed to claim the child on their tax return.

    To make the call, the IRS typically looks at where the child sleeps for more than half the year, but there are some special exemptions as to who can claim the child and when.

    It gets a bit tricky, but this IRS chart answers a variety of questions you might have.

    Does Your Child Work?

    If your child has a job, make sure they file their own tax return.

    Teens who work while in school usually don’t make enough money to have a liability. So, even though their employers have likely withheld taxes throughout the year, they’ll get them back in a refund check, which is a nice incentive.

    Plus, it’s a great way to continue teaching them about money.

    Contributor Michele Becker is a Boston-based writer who specializes in food, as well as Italian travel and history.


    beckermi29@gmail.com (Michele Becker)

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  • Working From Home? 7 Rules for Deducting Your Home Office for Taxes

    Working From Home? 7 Rules for Deducting Your Home Office for Taxes

    If you’re one of the millions of people who worked remotely in 2022, you may be wondering whether that means a sweet deduction at tax time. Hold up, though: The IRS has strict rules about taking the home office deduction — and they changed drastically under the Tax Cuts and Jobs Act, which passed in late 2017.

    7 Essential Rules for Claiming a Work-From-Home Tax Deduction

    Thinking about claiming a home office deduction on your tax return? Follow these tips to avoid raising any eyebrows at the IRS when you file your 2022 tax return, which is due on April 18, 2023.

    1. You can’t claim it if you’re a regular employee, even if your company requires you to work from home.

    If you’re employed by a company and you work from home, you can’t deduct home office space from your taxes. This applies whether you’re a permanent remote worker or if your office still hasn’t returned to in-person operations because of COVID-19. The rule of thumb is that if you’re a W-2 employee, you’re not eligible for a work-from-home tax deduction.

    This wasn’t always the case, though. The Tax Cuts and Jobs Act suspended the deduction for miscellaneous unreimbursed employee business expenses, which allowed you to claim a home office if you worked from home for the convenience of your employer, provided that you itemized your tax deductions. The law nearly doubled the standard deduction. As a result, many people who once saved money by itemizing now have a lower tax bill when they take the standard deduction.

    2. If you have a regular job but you also have self-employment income, you can qualify.

    If you’re self-employed — whether you own a business or you’re a freelancer, gig worker or independent contractor — you probably can take the deduction, even if you’re also a full-time employee of a company you don’t own. It doesn’t matter if you work from home at that full-time job or work from an office, as long as you meet the other criteria that we’ll discuss shortly.

    You’re allowed to deduct only the gross income you earn from self-employment, though. That means if you earned $1,000 from your side hustle plus a $50,000 salary from your regular job that you do remotely, $1,000 is the most you can deduct.

    3. It needs to be a separate space that you use exclusively for business.

    The IRS requires that you have a space that you use “exclusively and regularly” for business purposes. If you have an extra bedroom and you use it solely as your office space, you’re allowed to deduct the space — and that space alone. So if your house is 1,000 square feet and the home office is 200 square feet, you’re allowed to deduct 20% of your home expenses.

    But if that home office also doubles as a guest bedroom, it wouldn’t qualify. Same goes for if you’re using that space to do your day job. The IRS takes the word “exclusively” pretty seriously here when it says you need to use the space exclusively for your business purposes.

    To avoid running afoul of the rules, be cautious about what you keep in your home office. Photos, posters and other decorations are fine. But if you move your gaming console, exercise equipment or a TV into your office, that’s probably not. Even mixing professional books with personal books could technically cross the line.

    Getty Images

    4. You don’t need a separate room.

    There needs to be a clear division between your home office space and your personal space. That doesn’t mean you have to have an entire room that you use as an office to take the deduction, though. Suppose you have a desk area in that extra bedroom. You can still claim a portion of the room as long as there’s a marker between your office space and the rest of the room.

    Pro Tip

    An easy way to separate your home office from your personal space, courtesy of TurboTax Intuit: Mark it with duct tape.

    5. The space needs to be your principal place of business.

    To deduct your home office, it needs to be your principal place of business. But that doesn’t mean you have to conduct all your business activities in the space. If you’re a handyman and you get paid to fix things at other people’s houses, but you handle the bulk of your paperwork, billing and phone calls in your home office, that’s allowed.

    There are some exceptions if you operate a day care center or you store inventory. If either of these scenarios apply, check out the IRS rules.

    6. Mortgage and rent aren’t the only expenses you can deduct. 

    If you use 20% of your home as an office, you can deduct 20% of your mortgage or rent. But that’s not all you can deduct. You’re also allowed to deduct expenses like real estate taxes, homeowners insurance and utilities, though in this example, you’d be allowed to deduct only 20% of any of these expenses.

    Be careful here, though. You can deduct expenses only for the part of the home you use for business purposes. So using the example above, if you pay someone to mow your lawn or you’re painting your kitchen, you don’t get to deduct 20% of the expenses.

    You’ll also need to account for depreciation if you own the home. That can get complicated. Consider consulting with a tax professional in this situation. If you sell your home for a profit, you’ll owe capital gains taxes on the depreciation. Whenever you’re claiming deductions, it’s essential to keep good records so you can provide them to the IRS if necessary.

    If you don’t want to deal with extensive record-keeping or deducting depreciation, the IRS offers a simplified option: You can take a deduction of $5 per square foot, up to a maximum of 300 square feet. This method will probably result in a smaller deduction, but it’s less complicated than the regular method.

    7. Relax. You probably won’t get audited if you follow the rules.

    The home office deduction has a notorious reputation as an audit trigger, but it’s mostly undeserved. Deducting your home office expenses is perfectly legal, provided that you follow the IRS guidelines. A more likely audit trigger: You deduct a huge amount of expenses relative to the income you report, regardless of whether they’re related to a home office.

    It’s essential to be ready in case you are audited, though. Make sure you can provide a copy of your mortgage or lease, insurance policies, tax records, utility bills, etc., so you can prove your deductions were warranted. You’ll also want to take pictures and be prepared to provide a diagram of your setup to the IRS if necessary.

    As always, consult with a tax adviser or consider using tax prep software like TurboTax or H&R Block if you’re not sure whether the expense you’re deducting is allowable. It’s best to shell out a little extra money now to avoid the headache of an audit later.

    Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to [email protected].


    robin@thepennyhoarder.com (Robin Hartill, CFP®)

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  • Driving an Uber Has Been All Fun and Games Up until Tax Time

    Driving an Uber Has Been All Fun and Games Up until Tax Time

    Tax Day 2023 is closing in, and the burden for gig workers is a little heavier because you’re considered independent contractors — not employees — of the popular app-based companies you work for.

    After years of filing extensions because of the pandemic, last year marked the return to a more familiar April deadline. Similarly, this year’s deadline to file your federal taxes is April 18.

    While seasoned freelancers and gig workers likely know the drill when it comes to the process of filing your own taxes, it can be a daunting task for anyone new to the industry. The key thing to remember is that you’re responsible for reporting your gig work income for every client or company that paid you more than $600 in 2022.

    One reason for all the confusion? Your tax documents may not have arrived via snail mail (the way they typically would with a full-time employer) — especially as more and more companies start offering digital copies of tax filing documents.

    Regardless, you should have received everything you need (on paper, digitally, or both) from any companies you contracted with by Jan. 31. In any year, if you haven’t gotten anything by late February, reach out ASAP.

    Here’s a rundown of the tax forms you’ll need to use as a gig worker – plus a look at the tax policies of five of the most popular gig app companies: Instacart, DoorDash, Grubhub, Lyft and Uber.

    Common Tax Forms for Gig Workers

    In the eyes of the IRS, you’re a self-employed worker. That means it’s up to you to compile the appropriate tax forms and accurately report your income.

    Common Income Forms Sent to You 

    Companies that paid you more than $600 in a calendar year should send you a 1099 (either digitally or in the mail), as required by law. If you work across multiple apps, it’s possible you will receive a 1099 from each company. And depending on what companies you work for, you may receive up to three different types of 1099 per company.

    The 1099-NEC was introduced in 2020 and is the main tax form that’s now used to report nonemployee compensation of $600 or more. Many companies previously used the 1099 MISC (Box 7) to report this income, and if you’re an independent contractor who used to receive that form, you’ll likely now receive this one instead. On this new form, you’ll use the amount in Box 1 to report your self-employment income.

    Line 1 of the 1099-NEC form is where you should see your compensation. Chris Zuppa/The Penny Hoarder

    The 1099-K form is another common form sent to gig workers. Previously, workers had to meet certain thresholds to receive this form (ie. offer a certain number of rides via Lyft or Uber or earn a certain amount in a calendar year). Beginning in 2022, anyone receiving payments exceeding $600 via a third party network or debit/credit card transactions will get this form, regardless of the number of transactions they completed.

    A graphic highlights the field Gig workers will see their income on a 1099 k form.
    Line 1a on the 1099-K form is where you will find the gross amount made from card and third party transactions. Chris Zuppa/The Penny Hoarder

    NOTE: On December 23, 2022 the IRS announced it would treat the 2022 tax year as a transition year for this new policy. Translation? You may or may not get this form from any company you worked for depending on how much you earned and whether or not they followed the initially proposed 2022 guidelines.

    If you own a business that accepts credit or debit card payments, drive for a rideshare company, or sell stuff on various online platforms— you may receive this form. Self-employed workers should use this form (along with the NEC) to report gross income earnings for the year. Pay special attention to Box 1a (your net income) as well as Boxes 5a-5l (your net income month-by-month) to understand how much money you received via third party networks.

    The 1099-MISC, short for miscellaneous income, has undergone a lot of changes over the past years  in order to accommodate the creation of the new 1099 NEC tax form. Like we mentioned up top, this form used to be the number one tax form for gig workers and independent contractors. But in 2023? Not so much.

    While you may still receive this form as a gig worker, it won’t necessarily be because of your job. Those receiving the 1099-MISC nowadays are often getting it for reasons like collecting at least $600 or more in rent, medical payments, or prizes and awards. If you do happen to get one of these forms, just remember that the amounts listed on it will need to be reported as income.

    Tax Return Forms You Send to the IRS

    After you’ve tracked down all your 1099s and tallied up your net income, your next step is to get that number as low as possible by subtracting any and all applicable business expenses and deductions.

    Pro Tip

    Most Uber and Lyft drivers don’t meet the 1099-K threshold and won’t receive this form. Again, even if they don’t send you the form, you are still responsible for reporting your earnings.

    As a gig worker, you may need to file the following tax forms with the IRS:

    • Form 1040: This is now the main form used by all U.S. taxpayers to file an annual income tax return. (Forms 1040S and 1040EZ are no longer available.)
    • Schedule C: is a sub-form of the 1040 used to tally up your profit and loss as an independent contractor. Line No. 1 is where you report gross income from all 1099s or from the income summary provided in your gig app. The subsequent boxes are examples of business expenses you may use to lower your taxable income. Line No. 31 is your net profit, a number you’ll need for the Schedule SE.
    • Schedule SE: This is another 1040 sub-form for self-employed (gig) workers. Use it to calculate your self-employment tax.
    • Schedule 2: is an “additional tax form,” i.e. where you provide the amount you owe in self-employment taxes from the SE form above. Put that figure on line No. 4 and the grand total on line No. 21.
    • Form 1040-ES: Use this form, instead of the standard 1040 if you need to file quarterly taxes.

    You must file a tax return if you have net earnings from self-employment of $600 or more from gig work, even if it’s a side job, part-time or temporary.

    Tax Policies and Resources of 5 Popular Apps

    What forms you receive and what tax service you choose to file with depends on the company you’re working for. Each company has slightly different tax policies and may offer discounts for different tax-filing software services. Here’s how they stack up.

    Pro Tip

    Feeling overwhelmed? If you’re worried about making mistakes, we recommend using tax software like H&R Block, TurboTax or TaxAct.

    DoorDash

    DoorDash partners with Stripe. According to the company, you have received a 1099-NEC via Stripe e-delivery by December 31, 2022. The company no longer sends contractors details on their mileage, but instead recommends signing up with a mileage tracking app like Everlance to track your miles throughout the tax year and see if you qualify for any exemptions. Review DoorDash’s tax FAQ for more information. If you haven’t received your 1099-NEC or your mileage information, contact DoorDash customer support.

    Primary tax form: 1099-NEC.

    Who: Dashers who earned more than $600 the previous calendar year.

    How: Electronic form (unless you opted for paper delivery instead).

    Instacart

    Much like DoorDash, Instacart has partnered with Stripe to provide tax forms to its contractors. If you earned $600 or more with the company in 2022, you should expect to receive an email containing tax information from Stripe or Instacart by early January 2023—at which point you will be able to download your forms from Stripe Express. If you have any issues receiving your forms, or have questions, you can reach out to the company by logging into the Shopper Helping Center.

    Primary tax form: 1099-NEC.

    Who: Instacart shoppers who earned more than $600 the previous calendar year.

    How:  Electronic form.

    Grubhub

    If you’re a Grubhub driver who earned more than $600 in 2022, and are enrolled in electronic communications, then you should have received your 1099-NEC via email by the end of January 2023. If you opted out of electronic tax communications, then you likely received a mailed copy of the form around the same time.

    Visit Grubhub’s taxes FAQ for more information. If you haven’t received your form by Feb. 15, Grubhub recommends contacting the driver care team at [email protected] or at 866-834-3963.

    Primary tax form: 1099-NEC.

    Who: Grubhub drivers who earned more than $600 the previous calendar year.

    How: Electronic and paper form.

    Lyft

    According to Lyft’s tax site for drivers, the company partners with TurboTax to provide discounted self-employed tax-filing services. All Lyft drivers receive 25% off TurboTax Self-Employed and TurboTax Self-Employed Live Federal filing.

    Platinum drivers receive 50% off. To access your tax documents online (which may include the 1099-K as well as the 1099-NET), log in to your driver dashboard and click the “Tax Information” tab. There, you’ll be able to view your 1099-NEC, 1099-K and an unofficial tax summary document compiled by Lyft. The tax summary displays your net earnings and is especially useful if you don’t meet the earning threshold for either 1099 form. All tax documents will be available in your dashboard by January 31, 2022.

    Primary tax forms: 1099-K and 1099-NET.

    Who: Lyft drivers who earned more than $600 the previous calendar year.

    How: Electronic and paper form.

    Uber

    Like Lyft, Uber partners with TurboTax to provide free self-employed tax-filing services – plus a 50% discount for live chats with TurboTax’s CPAs.

    You can view your tax summary on or after Jan. 31 (which may include the 1099-K as well as the 1099-NET), via the tax information tab of your partner dashboard. You should have access to Uber’s tax summary even if you haven’t met the income thresholds for either 1099 forms. For more information on tax documents provided by Uber, visit their Tax Support page.

    Primary tax forms: 1099-NET and 1099-K.

    Who: Uber drivers who earned more than $600 the previous calendar year.

    How: Electronic and paper form.

    Contributor Larissa Runkle specializes in finance, real estate and lifestyle topics. She is a regular contributor to The Penny Hoarder. Contributor Matt Mastasci contributed to this report. 


    larissa.runkle@gmail.com (Larissa Runkle)

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  • Buy Now, Pay Later: Good Alternative to Credit Cards or Dangerous Debt Trap?

    Buy Now, Pay Later: Good Alternative to Credit Cards or Dangerous Debt Trap?

    Buy now, pay later apps are an increasingly popular way to finance purchases.

    Companies like Affirm, AfterPay and Klarna let you split the cost of everyday purchases — from running shoes to groceries — into several installment payments.

    Pay-in-four loans are the most common model. You’re required to make a small down payment, usually 25%, then enroll in auto-pay with a credit or debit card for the remaining three payments, often spread out two weeks apart.

    It may seem like an attractive alternative to credit cards since pay-in-four plans don’t charge interest.

    Pretty tempting, right? That’s the whole idea.

    But buy now, pay later isn’t free money. It’s a short-term loan, and the business model is sounding alarms from regulators and consumer protection advocates.

    “BNPL isn’t the life preserver it pretends to be to keep consumers from drowning,” said Ed Mierzwinski, senior director of the federal consumer program at U.S. PIRG, a consumer advocacy group. “It’s a come-on to spend more.”

    Here are seven pitfalls to keep in mind with buy now, pay later services, along with tips to avoid a debt trap.

    7 Dangers of Buy Now, Pay Later

    It may be convenient to delay paying off a purchase up front, but be wary of these risks that come with using buy now, pay later services.

     1. Buy Now, Pay Later Isn’t Building Your Credit — But It Could Hurt Your Credit

    Applying for a buy now, pay later service won’t hurt your credit score because these companies don’t run a hard credit check on your history.

    However, BNPL loans impact your credit in other ways.

    Unlike credit cards, most BNPL companies don’t send all their data to the three major credit reporting bureaus — TransUnion, Equifax and Experian.

    That means on-time payments don’t help boost or build your credit score.

    Current credit reporting conventions aren’t designed for short-term revolving lines of credit, like buy now, pay later loans. Credit reporting agencies are attempting to reconcile this with BNPL companies, but it’s a work in progress.

    If BNPL companies reported all their data to credit reporting bureaus under the current system, it could actually hurt consumers’ credit scores, even if they made timely payments.

    “That’s because each BNPL loan is a new line of credit, which can significantly reduce a person’s average length of credit history,” said Summer Red, an accredited financial counselor and director of education at the Association for Financial Counseling & Planning Education.

    On the other hand, missing a BNPL payment can still hurt your credit.

    If you start missing payments, your debt could be turned over to a debt collection agency and could be sent to a credit reporting company, which can ultimately damage your credit scores.

    2. You Could Also Overextend Yourself

    Because buy now, pay later companies don’t report information to the credit bureaus in a consistent fashion, traditional lenders can’t see how much debt you’re really carrying.

    “This could result in someone being approved for additional credit that they can’t afford to pay,” Red told The Penny Hoarder.

    If you apply for a car loan, mortgage or a new credit card, for example, the lender won’t see you have $1,000 in BNPL loans coming due next month. You could get saddled with a big car payment while still paying off BNPL loans.

    And since BNPL companies only conduct soft credit inquiries, one BNPL lender has no idea how much you’re borrowing from other BNPL companies.

    Buy now, pay later providers won’t let you take out another loan until you catch up with late payments. But there’s nothing to stop you from splitting up another purchase with a different provider, a practice known as loan stacking.

    People juggling four or more buy now, pay later loans at once were twice as likely to have missed a payment, according to a November 2022 Consumer Reports survey.

    “It can be easy to miss a payment when you have a lot of individual bills,” Red said.

    If you suspect an error on your credit report, a website called Credit Sesame can help you detect them — for free. If you find any, it will even help you dispute them.

    3. You Could Face Late Fees

    Each buy now, pay later company has different terms and conditions on what happens if you fall behind on payments.

    Some might not charge a late fee at all, like Affirm and PayPal’s Pay in 4. Others do: Afterpay, for example, charges up to $8, and Zip charges up to $10.

    Late fees from buy now, pay later apps are becoming more common, according to a September report from the Consumer Financial Protection Bureau. It found 10.5% of unique users were charged at least one late fee in 2021, up from 7.8% in 2020.

     4. You’re Also More Likely to Overdraft With Multiple BNPL Loans

    Nearly 90% of buy now, pay later users in 2021 linked a debit card to autopay their loans, according to the CFPB. Recent academic research shows that BNPL users are more likely to face overdraft fees from their bank than non-users.

    Overdraft fees can be costly, averaging about $30.

    All five of the major BNPL companies attempt to reauthorize failed payments, in some cases, up to eight times for a single installment, according to the CFPB.

    That means you could get hit with multiple overdraft fees from your bank in a short time if the BNPL company keeps running a linked debit card with insufficient funds.

     5. Buy Now, Pay Later Encourages You to Overspend

    By design, BNPL services encourage you to buy more and borrow more. This makes it easy — dangerously easy — to overspend.

    “It’s so easy to think ‘Oh, it’s just this small payment,’” said Kate Mielitz, an accredited financial counselor and special programs manager at AFCPE. “But those small payments add up to very large payments very quickly.”

    Nearly one-third — 30% — of surveyed users spent more than they would have if BNPL hadn’t been available, according to a March 2022 report from the Financial Health Network.

    Similarly, 45% of people who used a buy now, pay later service said they couldn’t have afforded the purchase otherwise, the Consumer Reports survey found.

    “BNPL makes it easy to make impulse purchases,” Red said. “That can quickly spiral into spending more than you can afford.”

     6. BNPL Companies Push Products Directly to Consumers

    Buy now, pay later companies have been tempting shoppers to split up their purchase at online checkout for years.

    Now, these companies are targeting consumers in other ways, including pushing an app-driven model to directly engage with potential shoppers.

    “In the app-driven model, (BNPL) lenders’ primary role is as a marketing platform to ‘push’ customers to retailers via referral clicks,” according to the September 2022 CFPB report.

    BNPL lenders often collect your data, too, which they use to deploy product features and marketing campaigns targeted specifically to your buying preferences, the report found.

    So even when you’re trying to save money and stick to your budget, these companies are making it harder.

    “The vast data collection and monetization engines run by Big Tech firms are designed to fuel an explosion of buying and an increase in consumer debt for stuff we don’t need … and, too often, end up throwing away,” Mierzwinski noted in a response to the CFPB report.

    7. Buy Now, Pay Later Doesn’t Offer The Same Protections and Regulations as Credit Cards

    A patchwork of consumer protections oversee buy now, pay later companies.

    This can cause headaches for consumers, including:

    • A lack of standardized fees, interest rates and payment terms disclosures.
    • Little if any dispute resolution rights for consumers.
    • A forced opt-in to autopay.
    • Companies that charge multiple late fees on the same missed payment.

    Consumer complaints to the Consumer Financial Protection Bureau about returns and disputes are common, according to the agency’s September report. Some consumers, for example, were still billed for their installment payment during the refund process or during a dispute.

    The Fair Credit Billing Act gives consumers the right to dispute credit card charges if there’s a quality issue with the product or a billing mistake. BNPL plans don’t qualify for this, so each provider plays by its own rules.

    4 Tips to Help You Avoid a Buy Now, Pay Later Debt Spiral

    Buy now, pay later services can help spread out the cost of big purchases over time, but they also make it easy to impulse buy items.

    Here are a few tips to prevent you from getting overwhelmed with buy now, pay later bills.

    1. Only take out one BNPL loan at a time. Juggling multiple loans from several lenders makes it easier to miss a payment, incur late fees and overdraft your bank account.
    2. Write down your due dates. BNPL companies don’t always notify you before they withdraw money from your account. Jotting down due dates or setting a reminder on your phone a couple days beforehand can help ensure you have sufficient funds in your bank account before you get charged.
    3. Change your payment due date. Some BNPL companies like Klarna and Afterpay let you extend your due date. This can give you some breathing room to adjust your budget and come up with the money before you fall behind on payments.
    4. Decide if you really need it. Is this a need or a want? Chances are it’s the latter. If you don’t have the money to buy the item outright, kicking the can down the road won’t make it more affordable.

    Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder. She focuses on retirement, credit, investing and life insurance. 


    rachel.christian@thepennyhoarder.com (Rachel Christian, CEPF®)

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  • Yes, Your Unemployment Is Taxable. But You Shouldn’t Panic if You Owe

    Yes, Your Unemployment Is Taxable. But You Shouldn’t Panic if You Owe

    Unemployment benefits can help cushion the blow when you lose your job. But if you received unemployment compensation in 2022, you may be in for a surprise when you prepare your tax return. That’s because you could owe taxes on your jobless benefits.

    How Are Unemployment Benefits Taxed?

    Let’s back up: Is unemployment taxable? Unfortunately, the answer is yes — and that can seem like Uncle Sam kicking you when you’re already down.

    If you received unemployment compensation in the past, that may come as a surprise. Back in 2021, the American Rescue Plan provided a small measure of relief for people who received benefits in 2020 at the peak of the COVID-19 crisis: The first $10,200 of unemployment compensation was shielded from taxes for households with incomes under $150,000 in 2020.

    But that relief measure applied only to 2020. Expect to pay ordinary income taxes on unemployment when you file your 2022 tax return (due April 18, 2023) and in future tax years.

    Still, many people are surprised to learn that they have to pay taxes on their jobless benefits. A Jackson Hewitt survey found that 39% of adults weren’t aware that unemployment is taxable.

    Here’s a breakdown of how taxes on unemployment benefits work.

    Federal Income Taxes

    When you receive unemployment benefits, they’re taxed at the federal level as ordinary income.

    That means if you got $10,000 from unemployment during a typical year, it would be taxed in the same income tax brackets as it would if you’d earned $10,000 from a job. But you wouldn’t owe payroll taxes, i.e., Social Security and Medicare taxes, on your benefits.

    State Income Taxes

    At the state level, it looks a little different. You won’t owe state taxes on your unemployment if you live in one of the following nine states that don’t have state income taxes:

    • Alaska
    • Florida
    • Nevada
    • New Hampshire (taxes dividends and interest income, but not wages or unemployment benefits)
    • South Dakota
    • Tennessee
    • Texas
    • Washington
    • Wyoming

    Of the remaining 41 states, the following seven plus the District of Columbia exempt unemployment from taxes:

    • Alabama
    • California
    • Montana
    • New Jersey
    • Oregon
    • Pennsylvania
    • Virginia

    A few others partially tax unemployment, but in most states, your unemployment is fully taxable.

    How Do I Pay Taxes on My Unemployment?

    There are two basic ways to pay federal taxes on your unemployment. Because the U.S. has a pay-as-you-go tax system, neither answer is “pay it all next year” — though as we’ll discuss shortly, the consequences for doing so aren’t too harsh.

    1. Have your state unemployment office withhold it. This is how it works when you’re employed and your employer automatically takes out a portion of your check for taxes. You can opt to have 10% of your benefits automatically withheld, but you don’t get the choice of having more or less withheld. When you first apply for benefits, you’ll have the option of filling out IRS Form W-4V for voluntary withholding. If you’re already receiving benefits, you can still submit Form W-4V to your state office to change your withholding.
    2. Pay unemployment taxes quarterly. The IRS says you should make quarterly estimated payments if you expect to owe at least $1,000 in taxes from all your income sources and you haven’t had at least 90% of what you’ll owe for the year withheld. Alternatively, you’re in the clear if you had 100% of the prior year’s tax bill withheld if your adjusted gross income is under $150,000, or 110% if your AGI is over $150,000.

    What if I Haven’t Had Taxes Withheld?

    There’s no need to panic if you haven’t had taxes withheld on your unemployment compensation.

    A lot of people are in that situation. Either they haven’t had taxes withheld because they’ve needed their entire check to survive, or they just didn’t know they had to pay taxes on their benefits.

    If you’re still receiving benefits and the 10% withholding wouldn’t threaten your ability to pay for your basic needs, we suggest submitting Form W4-V to your state unemployment office ASAP.

    The worst-case scenario: You owe money on Tax Day and can’t afford the bill.

    While the IRS may have a reputation for making grown-ups cry, owing money at tax time isn’t as terrifying as it sounds, so long as you file a tax return on time. (You can get more time to submit your return if you file for an extension, but the tax bill is still due on April 18, 2023.)

    Pro Tip

    Feeling overwhelmed? If you’re worried about making mistakes, we recommend using tax software like H&R Block, TurboTax or TaxAct.

    In most situations, you can automatically get approved for a payment plan that will cost you just 0.5% in interest per month, up to 25% of your overall bill. If you can afford to pay the entire bill within 120 days, you won’t incur additional fees. Otherwise, you’ll pay $31 to set up a direct deposit payment plan online or $107 to set it up by phone or email, or in person.

    Of course, the IRS will encourage you to pay as much as you can afford, but you can select a monthly payment that’s as low as the total amount you owe divided by 72.

    Fees aside, 0.5% per month works out to 6% per year. By comparison, the average credit card interest rate is over 17%, which makes the IRS look like a pretty generous creditor. For that reason, we’d suggest going with a payment plan when you can’t afford a tax bill, rather than charging it to a credit card.

    You may also qualify for certain tax credits that will offset the amount you owe.

    Just make sure you file a tax return next year, even if you can’t afford to pay. The failure to file penalty is pretty steep at 5% per month up to 25% of your tax bill.

    The bottom line: You will pay taxes on your unemployment compensation. Pay them upfront either automatically or quarterly if you can. But know that if you owe taxes on your benefits next year, that doesn’t spell doomsday for your finances.

    Robin Hartill is a certified financial planner and a senior writer at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to [email protected]


    robin@thepennyhoarder.com (Robin Hartill, CFP®)

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  • Best Checking Accounts – Our 10 Recommendations

    Best Checking Accounts – Our 10 Recommendations

    Do you remember why you chose your current checking account?

    If you got started early, your parents might have helped you open a kids’ checking or savings account at their bank’s branch. Or maybe you went with the credit union down the street from your work after getting your first W2 job.

    Whatever the reason, location likely played a big part. Thankfully, you’re no longer confined to a financial institution for a checking account because of its proximity to you — or a brick-and-mortar site altogether, for that matter.

    From higher interest rates to better benefits, it pays to expand your search beyond your local bank or credit union these days. Here’s how to choose the right checking account for you.

    10 Best Checking Accounts for February 2023

    Is it Time to Change Checking Accounts?

    Account APY ATM Access Fees
    Chime Checking Account None 60K+ fee-free ATMs No monthly fees GET DETAILS
    Varo Bank Account None 55,000+ Allpoint ATMs Out-of-network ATM GET DETAILS
    Chase Total Checking None 16,000 ATMs Yes, but may be waived GET DETAILS
    Chase College checking None 16,000 ATMs None GET DETAILS
    TD Bank Convenience Checking None 700 ATMs Yes, but may be waived GET DETAILS
    Axos Bank Essential Checking None Fee reimbursements None GET DETAILS
    Ally Interest Checking Up to 0.25% 55,000+ Allpoint ATMs None GET DETAILS
    Consumers Credit Union Free Rewards 2.09% Over 30,000 ATMs Overdraft fees GET DETAILS
    Schwab Bank High Yield Investor Checking 0.45% Unlimited ATM fee-reimbursements None GET DETAILS
    Montgomery Bank New Start Checking None Bank & MoneyPass ATMs None GET DETAILS

    Chime Checking Account

    Best for Digital Features

    Key Features

    • No monthly maintenance fees
    • Free access to in-network ATMs
    • A “Pay Friends” feature to give money to friends

    Chime is an online checking account that truly embraces the digital banking space* — consider that its app has over 550,000 positive reviews. The company’s tagline is “banking that has your back” and it aims to do that through its Early Payday function (where you get access to direct deposit funds up to two days early), fee-free overdraft services and more.

    Chime Checking Account

    Fees

    No monthly fees

    APY

    None

    ATM access

    60K+ fee-free ATMs*

    Promotions

    None

    Prime perk

    “Pay friends” feature

    More information About Chime Checking Account

    Chime doesn’t charge overdraft fees or for overdraft protection, a monthly maintenance fee, foreign transaction fees or minimum balance fees. You can also open an easy-to-access connected savings account — it allows you to automate your savings with features like the round-up tool, which will round up your transactions to the nearest dollar and dump the change into savings. Bonus: Chime has a “Pay Friends” feature, so you don’t have to mess with cash, math or other apps to split the bill.

    For a full run down of fees and services, check out our complete Chime Bank review.

    Varo Bank Account

    Best for Cash Back

    Key Features

    • No hidden fees
    • Early access to your paycheck
    • Tool to project your cash flow

    Varo has combined traditional banking tools with modern technology to help its customers become financially healthy. Its big selling points include Varo Perks — get up to 15% cash back with in-app purchases — no hidden fees and early access to your paycheck. You can also earn up to a whopping 5.00% APY with a Varo high-yield savings account.

    Varo Bank Account

    Fees

    Out-of-network ATM and cash deposit fees

    APY

    None

    ATM access

    More than 55,000 Allpoint ATMs

    Promotions

    Earn money by referring friends

    Prime perk

    Up to 15% cash back

    More information About Varo Bank Account

    With Varo, you’ll pay no monthly service fees, no extra fees for minimum balance requirements, no foreign transaction fees and no cash replacement fees. For money transfers, Varo Bank works with Zelle® so you can send money to folks who user other banks for free. You’ll just pay out-of-network ATM fees and cash deposit fees if you deposit cash in-store through Green Dot®. Varo keeps tabs on how much you spend across all your accounts, too, so you can better analyze and project your cash flow. It also allows you to set spending caps so you have a better handle on your money.

    For a full run down of fees and services, check out our complete Varo Bank review.

    Chase Total Checking Account

    Best for Promotional Offers

    Key Features

    • A hefty sign-on bonus for new customers
    • Offers online, mobile and text banking
    • Lots of branch locations in the U.S.

    Chase Bank is a well-known entity in the financial world, and we had to include its Total Checking Account on our list. The account comes with a $12 monthly service fee, but it’ll be waived if you have monthly direct deposits of at least $500. If you don’t have direct deposit, you can also have the fee waived with a minimum daily balance of $1,500 (or $5,000 across multiple Chase accounts).

    Chase Total Checking Account

    Fees

    Yes, but may be waived

    APY

    None

    ATM access

    16,000 ATMs

    Promotions

    Yes

    Prime perk

    Branches in 33 states to avoid fees

    More information About Chase Total Checking

    This Chase account has other fees. For example, you can use a Chase ATM for free, but you’ll pay a $3 fee for non-Chase ATMs in the U.S., Puerto Rico and the U.S. Virgin Islands and $5 outside of those locations — so, this account isn’t the best for frequent international travelers. Thankfully, the bank has branches and 16,000 fee-free ATMs in 33 states around the U.S., so you can avoid the fees if you’ve got one nearby.

    Bonus (literally): You can get $200 when you open a new checking account. Getting it is pretty simple, too, compared with similar offers — open a new Chase Total Checking account* with $0, and set up direct deposit within 90 days of opening. Keep your account open for at least six months, or you’ll lose the bonus at closing.

    For a full run down of fees and services, check out our complete Chase Bank review.

    Chase College Checking Account

    Best for Responsible Students

    Key Features

    • New applicants can qualify for a bonus
    • Lots of branches and ATMs in the U.S.
    • No monthly service fee

    The Chase College Checking Account is designed with the college student in mind. For anyone ages 17 to 24 with proof of college enrollment, there is no monthly service fee. However, it does come with some hefty insufficient-funds fees and fees for using non-Chase ATMs.

    Chase College Checking Account

    Fees

    None

    APY

    None

    ATM access

    16,000 ATMs

    Promotions

    Yes

    Prime perk

    $100 for signing up

    More Information About Chase College Checking Account

    New applicants can get a $100 bonus in their account just for signing up for paperless statements and making 10 qualifying transactions within the first 60 days. Debit card transactions count, so that should be easy.

    No other rewards are a part of this account, but that’s typical with a student checking account. Beyond that, the account comes with the accessibility of one of the nation’s largest financial institutions, so ATMs are plentiful and online and mobile banking is available.

    For a full run down of fees and services, check out our complete Chase Bank review.

    TD Bank Convenience Checking

    Best for Mobile Banking

    Key Features

    • Free online and mobile banking
    • No maintenance fee for students 17-23 years old
    • Monthly fee that can be waived easily

    TTD Bank is another big name on our list. All TD accounts include free online and mobile banking, including mobile check deposit. The $15 monthly maintenance fee on this account sounds hefty at first, but it’s waived if you maintain a $100 minimum daily balance. However, if you tend to keep a low account balance, that fee — and the account’s $35 overdraft fee — could pinch your wallet.

    TD Bank Convenience Checking

    Fees

    Yes, but may be waived

    APY

    None

    ATM access

    700 ATMs

    Promotions

    Yes

    Prime perk

    No monthly maintenance fees for students

    More Information About TD Bank Convenience Checking

    Anyone can open an online checking account, but TD’s brick-and-mortar banks (and ATMs) are mostly located on the East Coast. With a $3 fee for using an out-of-network ATM, you might want to have a physical location nearby.
    The best thing about this financial institution is it’ll pay you — just for opening an account. For a $300 bonus and an interest-yielding account, consider TD Bank’s higher-tier Beyond Checking account. You must meet certain criteria (and be a new customer) to earn this bonus. (And double-check when the offer ends.)

    Axos Bank Essential Checking

    Best for Online Customers

    Key Features

    • Up to 1.00% APY on certain accounts
    • Requires balance of only $1
    • Unlimited ATM-fee reimbursement in the U.S.

    Axos’ Essential Checking account comes with no monthly, annual or overdraft fees. An Axos representative told TPH all its checking accounts require a $100 minimum opening deposit — but, after that, you only need a minimum balance of $1. Despite the low minimum balance, this bank rewards its customers with up to 1.25% APY on their balance (though Essential Checking accounts are not eligible).

    Axos Bank Essential Checking Account

    Fees

    None

    APY

    Up to 1.25% on certain accounts

    ATM access

    Unlimited domestic ATM reimbursements

    Promotions

    $150 welcome bonus

    Prime perk

    Online bankers valued

    More Information about Axos Bank Essential Checking

    Axos offers a lot if you’re in the market for an online-only checking account. On top of no fees, Axos will also reimburse you by the end of the next business day for unlimited ATM fees within the U.S.
    Regarding spending abroad — per a rep via live chat, you’ll pay a 1% service transaction charge on purchases made in other countries. So, even though this online bank account is flexible, it isn’t ideal for international travelers.

    For a full run down of fees and services, check out our complete .

    Ally Interest Checking Account

    Best for No Fee Perks

    Key Features

    • Use any Allpoint ATM in the U.S. free of charge
    • No overdraft fees
    • Up to 0.25% APY

    With Ally’s online Interest Checking account, you can take advantage of no minimum required deposit and use any Allpoint ATMs in the U.S. for free. Plus, Ally will reimburse you up to $10 per statement cycle for other ATM fees within the U.S. As for no fees, there’s more good news: Last year, Ally permanently suspended overdraft fees for checking accounts and all others.

    Ally Interest Checking Account

    Fees

    None

    APY

    Up to 0.25%

    ATM access

    More than 55,000 Allpoint ATMs

    Promotions

    None

    Prime perk

    Account accessible online or through app

    More Information About Ally Interest Checking

    With a daily balance of $15,000 or more, this checking account yields 0.25% interest. Below $15,000, it’s 0.10%. That tops a lot of bank accounts, but it’s not as impressive as we’d expect for an account with “interest” in the name — and that balance requirement is a beast. We expect more when checking accounts earn interest.

    You can access Ally Interest Checking online or through the Ally app, so it’s an accessible choice for anyone within the U.S.

    For a full run down of fees and services, check out our complete Ally Bank review.

    Consumers Credit Free Rewards

    Best for High Balance Benefits

    Key Features

    • Earn 2.09% interest
    • All ATM fees in the U.S. are reimbursed
    • Branches in IL; anyone in U.S. can bank online

    Prefer to bank at a credit union? Check out the Consumers Credit Union Free Rewards Checking Account. The interest is solid and the rewards are pretty sweet — no monthly maintenance fees, good APY, early direct deposit and more — but the requirements are a bit hefty.

    Consumers Credit Union Free Rewards

    Fees

    Overdraft fees

    APY

    2.09% (but up to 4.09% for all accounts)

    ATM access

    Over 30,000 ATMs

    Promotions

    None

    Prime perk

    Solid interest offers

    More Information About Consumers Credit Union Free Rewards Checking

    With this Consumers Credit Union plant, account holders will earn 2.09% interest on your balance up to $10,000. You’ll also have all ATM fees reimbursed, as long as you:

    • Make 12 debit card purchases each month without using the PIN (as a credit transaction).
    • Have at least one direct deposit or ACH credit of $500 or more each month.
    • Enroll in e-documents.

    In addition to that, you can earn 3.09% or 4.09% APY (annual percentage yield) on balances up to $10,000 if you meet CCU Visa credit card spending requirements: $500 and $1,000, respectively.
    All CCU branches are in Illinois, but anyone can open and manage an account online and through the mobile app.

    Schwab Bank High Yield Investor

    Best for International Travelers

    Key Features

    • Easy-to-use app
    • ATM-fee reimbursements around the world
    • No fees or minimum deposit required

    Schwab Bank is loved by international travelers. The account offers unlimited ATM fee rebates for cash withdrawals at ATMs anywhere in the world. You can manage your account online or through the Schwab app for iPhone, and make deposits through the app, so this account keeps up with jet-setters.

    Schwab Bank High Yield Investor Checking

    Fees

    None

    APY

    0.45%

    ATM access

    Unlimited ATM-fee reimbursements

    Promotions

    None

    Prime perk

    Free ATM rebates worldwide

    More Information About Schwab Bank High Yield Investor Checking

    The downside? Schwab’s online-only High Yield Investor Checking account must be linked to a Schwab One brokerage account. Luckily, there are no fees or minimum deposits to open either account, as long as you open them together.
    Neither account comes with monthly fees or a minimum balance, but “other account fees, fund expenses and brokerage commissions may apply” to the brokerage account once you begin investing, according to the Schwab site.
    The checking account offers a variable interest rate. If you want to grow your savings through Schwab, you’ll want to invest through the brokerage account.

    Montgomery Bank New Start

    Best for No-Frills Banking

    Key Features

    • Low minimum deposit to open an account
    • No service fees or required monthly balance
    • Free debit card

    The Montgomery Bank New Start Checking account is what you want in a second chance banking account. No frills, but no unnecessary fees, either. All it takes is a $20 minimum deposit to open the account. While this is a no-frills account, it offers a lot of benefits for those who are looking to get back on their financial feet again.

    Montgomery Bank New Start Checking

    Fees

    $20 to open, and then none

    APY

    None

    ATM access

    Montgomery Bank & MoneyPass ATMs

    Promotions

    None

    Prime perk

    Lots of freebies

    More Information About Montgomery Bank New Start Checking Account

    This account is loaded with freebies and other extras, such as free direct deposit, unlimited check writing and a free debit card. You can also open interest-bearing accounts with the bank if you’re interested in other options. Additionally, Montgomery Bank offers a business checking account, too.

    Pro Tip

    Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

    What Is a Checking Account?

    A checking account is a place to store money at a bank, credit union or other financial institution. The money in a checking account is typically reserved for regular, everyday expenses, as opposed to a savings account. Checking accounts usually distribute paper checks and a debit card to members as well.

    How to Choose a Checking Account

    You probably already know that you need a checking account and if it comes with a free debit card, that’s even better. A checking plan serves as the primary hub for your money. It’s where your paychecks and direct deposits land, and, from there, you use the money to pay bills, buy the stuff you need and hopefully slide some of it into a savings account. Maintaining a savings account is a smart personal finance decision.

    Picking a bank account is a personal choice. What makes checking accounts “good” depends largely on your financial situation and goals. Checking accounts come in a lot of varieties these days, each with different features and benefits. You can pick from online-only banks to those with physical branches, and from those that pay interest to those that offer free checking accounts and no fees for out-of-network ATM use. It’s up to you to do the research and find the one that will benefit you and your lifestyle the most.

    But we can tell you a few things that make certain checking accounts worth opening. Here are a few important features to keep in mind when looking for the best checking accounts:

    • Fees: How much will it cost you to manage your money with this account? Make sure you know the monthly fee — or fees — to maintain the account. Also, understand the account’s overdraft fee protection.
    • Safety: If something happens to the institution where you hold your account, will your money be protected? Make sure your checking account is NCUA- or FDIC-insured.
    • Interest rates and APY: Does a particular checking account offer interest on your money to keep it in an account? (These types of accounts tend to offer no or low interest rates and APY, but there are high-interest checking accounts out there.)
    • Rewards: What do you earn in return for using the account? Are you rewarded for making regular direct deposits or keeping a high balance, for example?
    • Minimum balance:: Is there a minimum or average daily balance needed to maintain the account? Or to open the account? Minimum balance requirements can range for $1 to thousands of dollars (to earn a particular rate) and you’ll want to know this before you open an account, be it at a branch or through online banking.
    • Accessibility: What are the requirements to open this account (again, minimum balance requirements, and earn the rewards?
    • Mobility: Can this account travel and move with you? How are the online banking features? Do direct deposits make your banking life easier? How good is the financial institution’s app in making mobile check deposits easier? Are you considering online banks or only those with physical branches?

    Types of Checking Accounts

    There are a few varieties of checking accounts out there that offer different benefits. You just need to figure out which kind will work best for you. Some of your options for traditional and online checking accounts are:

    • Student Checking: These accounts usually feature minimal fees and no minimum balance. They also don’t offer a lot of perks. They’re bare-bones accounts designed for cash-strapped students who just need the basics.
    • Express Checking: This is the checking account for today’s digital person. If you don’t like going to the bank, this could be for you. These accounts are designed for use on computers, phone apps, ATMs or by telephone. You may actually get a fee for going to a live teller. The upside is fees are minimal as long as you keep banking digitally.
    • Joint Checking: Need to share a checking account with a spouse or another person? A joint account lets you both put money in and take money out as needed.
    • Fresh Start or Second Chance Checking: If you’ve run into financial trouble and have had your accounts closed, it can be tough to get a new account. These accounts are designed to minimize the bank’s risk, but they allow you to open a new account. If you maintain it well for an extended period of time, it may open opportunities for you to upgrade.
    • Rewards Checking: Rewards checking offers the highest perks, such as annual percentage yield (APY) interest on the account balance. Debit card purchases could also receive cashback bonuses or earn points for things like airline travel or gift cards. Some, however, will come with an annual fee.
    Pro Tip

    Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

    Checking Account vs. Savings Account

    financial setup. You want to have one location for more regular, everyday expenses (checking) and one for longer-term savings and goals (savings).

    Checking Account Pros and Cons

    There are advantages and disadvantages to checking accounts and below are the most common.


    Pros

    • Relatively easy and quick to open
    • Low- or no-fee account options
    • Typically offer a free checkbook and debit card


    Cons

    • Usually don’t earn interest
    • Certain accounts have fees (like overdraft and minimum balance requirements) that can add up quickly if you’re not vigilant

    Savings Account Pros and Cons

    The following pros and cons of savings accounts can help you decide how to use them.


    Pros

    • Relatively easy and quick to open
    • Offers interest
    • Easy to access your money in times of need (versus a CD, for example)


    Cons

    • Interest rates can vary over time
    • Certain accounts have fees or requirements (like a particular monthly balance to earn a higher interest rate)

    When it comes to checking and savings accounts, don’t think of it as an either-or situation — it’s a good idea to have both. You can also mix and match. For instance, you might go for an online checking account and a local credit union for a savings account.

    You can have multiple checking accounts, too; perhaps one offers a new-member bonus for an influx of free cash, while another offers free overdraft protection for regular spending. Alternatively, when it comes to savings accounts, one might offer a higher annual percentage yield, while another offers other saving products like a money market account.

    Regardless of the checking account or savings account you choose, it’s a good move to keep your money in a secure place

    Choosing a Bank vs. a Credit Union vs. a FinTech Company for Your Checking Account

    Similarly, opening a checking account, period, is generally a good move, regardless of where you do it.

    Keep your own habits and preferences in mind, especially when it comes to choosing between a brick-and-mortar (bank or credit union) and online-only setup. Consider fees, from initial to ongoing, as well to make sure the account doesn’t end up costing you.

    Ultimately, though, don’t get hung up on too many details: When it comes to personal finance, it ultimately comes down to what works for you and your situation.

    Methodology

    We graded 10 of our favorite bank and credit union accounts on the factors that we like to see in any checking account — no fees, free ATMs, good rewards, easy setup and accessibility.

    If an account has a monthly fee or out-of-network ATM charges, we highlighted some more positive qualities (think: a low minimum balance requirement, interest checking account offering or a free debit card). With that said, we prioritized those checking accounts that nixed monthly maintenance fees, featured savings accounts and had no-charge or reimbursed out-of-network network ATM fees.

    Here are the best checking accounts we found across (online) banks, credit unions and other financial institutions.

    Recapping the 10 Best Checking Accounts of February 2023

    • Chime Checking Account: Best for Digital Features
    • Varo Bank Account: Best for cash back
    • Chase Total Checking Account: Best for Promotional Offers
    • TD Bank Convenience Checking Account: Best for Free Mobile Banking
    • Axos Bank Essential Checking Account: Best for Online Customers
    • Ally Interest Checking Account: Best for No Fee Perks
    • Consumers Credit Union Free Rewards Checking: Best for High Balance Benefits
    • Schwab Bank High Yield Investor Checking: Best for International Travelers
    • Chase College Checking Account: Best for Responsible Students
    • Montgomery Bank New Start Checking Account: Best for No-Frills Banking

    Frequently Asked Questions (FAQ) About Checking Accounts

    When it comes to choosing the best checking accounts, there’s a lot of information out there. Here, we’re answering some of the most popular questions about checking accounts.

    What is a Checking Account?

    A checking account is where you hold money at a bank, credit union or other financial institution. You typically use this account to pay for everyday expenses or bills. Depending on where you have you bank, you can access your cash in person, or via an ATM or debit card. Unlike a savings account — which you use for an emergency fund or other financial goal — checking accounts should be fairly accessible for regular spending usually with a debit card. They don’t normally accrue interest.

    How Can I Open a Checking Account?

    Every checking account — whether it’s through a physical or online bank, credit union or other fintech setup — will have its own requirements. Generally, to open a checking account, you need to be at least 18 years old (though guardians can sometimes co-sign an account for a minor) and have a government ID (such as a passport or driver’s license). You’ll likely also need to supply contact information and possibly an opening deposit.

    Which is the Best Bank to Open an Account In?

    The best bank to open an account will depend on your needs. If you prioritize banking at a physical institution with plenty of locations where you can interact with staff in person, you might choose to go with a big-name chain. If you prefer a bank where you might qualify for higher interest rates in lieu of having access to brick-and-mortar locations, an online setup might work best for you. No matter your choice, it’s a good idea to evaluate it over time; if a bank ends up not being over time.

    What is the Best Free Checking Account?

    The best free checking account will vary based on your wants and needs in a banking account. You’ll want to look for an account that has no or a low monthly fee, a free debit card and easy access to your money — whether that is an ATM, a physical branch, an app or all of the above. Bonus: look for a free checking account that also offers a new-user bonus. Right now, Chime, Varo and Axos are overall solid free options for checking. Shop around and look for a checking account that’s best for you.

    Is Wells Fargo or Chase Better?

    Wells Fargo and Chase each offer online checking accounts, among other banking products. But they also have monthly fees, too. Good news: Well Fargo eliminated non-sufficient fees funds (NSF) fees in 2022 and started giving customers early access to eligible direct deposits.

    Each have online and in-person banking; so, one could be a better fit depending on branch locations in your area. Chase often offers significant new-user sign-on bonuses.

    What Bank is Good for a Checking Account?

    What makes a bank good for a checking account weighs largely on what you prioritize in both a bank and an account. As a whole, you want to consider fees (how much does it cost you to keep your money there?), rewards (do you earn anything for banking with them?), accessibility (what are the requirements to open and keep your account open?) and mobility (does the bank charge foreign transaction fees?). Bonus points if they give out a… bonus, too, for being a new account holder.

    How is Interest Taxed on a Checking Account?

    The interest earned on checking accounts is considered taxable income. So, your bank, credit union or financial institution will send you a 1099-INT form each year your account earns interest over $10. You file this paperwork along with your yearly taxes. And don’t let this income being  taxed deter you from saving money; a traditional or high-yield savings account is still a worthwhile tool for your money. 

    Contributor Kathleen Garvin (@itskgarvin) is a personal finance writer based in St. Petersburg, Florida, and former editor and marketer at The Penny Hoarder. She owns a content-writing business and her work has appeared in U.S. News, Clark.com and Well Kept Wallet.

    *Chime disclosure:
    Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.

    Out-of-network ATM withdrawal fees may apply except at MoneyPass ATMs in a 7-Eleven, or
    any Allpoint or Visa Plus Alliance ATM.

    *Chase fine print:

    “Checking offer is not available to existing Chase checking customers, those with fiduciary accounts, or those whose accounts have been closed within 90 days or closed with a negative balance. To receive the $200 checking bonus: 1) Open a new Chase Total Checking account, which is subject to approval AND 2) Have your direct deposit made to this account within 60 days of account opening. Your direct deposit needs to be an electronic deposit of your paycheck, pension or government benefits (such as Social Security) from your employer or the government. After you have completed all the above requirements, we’ll deposit the bonus in your new account within 10 business days. You can only receive one new checking account-related bonus per calendar year. Bonus is considered interest and will be reported on IRS Form 1099-INT.

    “Account Closing: If your checking account is closed within six months after opening, we will deduct the bonus amount at closing.”

    Editorial Disclosure

    This content is not provided by the bank advertiser. Opinions expressed here are the author’s alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.


    kathleen@thepennyhoarder.com (Kathleen Garvin)

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  • Extra SNAP Benefits End Soon — 9 Ways to Make Your Food Dollars Stretch

    Extra SNAP Benefits End Soon — 9 Ways to Make Your Food Dollars Stretch

    Millions of Americans who rely on Supplemental Nutrition Assistance Program, or SNAP benefits, will receive less money for food starting in March.

    SNAP benefits, commonly known as food stamps, received a boost three years ago as part of a pandemic-era emergency allotment.

    But these extra benefits — which gave recipients an average of $95 or more a month to buy groceries — are set to expire in March under a new government spending bill.

    How Are SNAP Benefits Changing?

    For nearly three years, emergency allotments allowed all SNAP households to receive an additional $95 per month, or the maximum benefit amount for their household size, whichever was greater.

    Residents in some states have already seen their benefits cut. Thirty-two states plus the District of Columbia are still providing the boost, but only until March, according to the U.S. Department of Agriculture. In South Carolina, benefits return to normal this month.

    Bigger benefits have already expired in these states: Alaska, Arizona, Arkansas, Florida, Georgia, Idaho, Indiana, Iowa, Kentucky, Mississippi, Missouri, Montana, Nebraska, North Dakota, South Dakota, Tennessee and Wyoming.

    Impact of Smaller SNAP Benefits on the Most Vulnerable

    About 41 million Americans with low-incomes received SNAP benefits in 2021, according to the Center on Budget and Policy Priorities.

    More than 80% of SNAP recipients are part of a working family, a person with a severe disability or a senior citizen living on a fixed income.

    Seniors on Social Security will be hit hardest by the pull back in SNAP benefits. Social Security gave recipients a record 8.7% increase this year due to inflation — but it’s a double-edged sword.

    Social Security counts as income when determining SNAP eligibility, so bigger checks means seniors can expect further reductions in their SNAP benefits by March.

    The news comes amid rising food prices and the end of other pandemic-era measures, including the child tax credit and universal free school meals.

    “It feels like yet another example of our society punishing people for being poor,” said Mary Lee Downey, founder and CEO of The Hope Partnership, a nonprofit providing poverty alleviation services in Kissimmee, Florida.

    “As these benefits disappear, we can expect to see drastic increases in families seeking services just to feed their children and keep a roof over their heads,” Downey said.

    9 Ways to Save Money on Food as SNAP Benefits Expire

    For the millions of Americans impacted by a drop in SNAP benefits, affording groceries is about to get even harder.

    Here are 12 ways to save money on food to help stretch your budget.

    1. Reach Out to a Food Pantry

    Asking for help isn’t easy, but food pantries provide a legitimate way to get food for free. It may be your best option if there simply isn’t enough money in your budget anymore.

    You can use this food pantry locator tool from Feeding America to find food banks in your area.

    You can also call United Way’s 211 service to find other local resources.

    2. Master the Art of Meal Prep

    Meal prep is the best way to save money on groceries while reducing food waste at the same time. But finding time to do it can be tough.

    Our tips for budget meal planning include keeping an eye on sales, shopping for specific recipes or dishes, buying what’s in season and more.

    3. Get Creative With Your Food Pantry Haul

    Food pantries usually provide enough food to last a week, but there’s a few ways to make it stretch longer.

    You can pair cheap produce with food pantry staples like black beans and rice to create a filling meal for less than $2.

    When it comes to keeping your kitchen stocked with those supplementary meal-enhancing ingredients, pick up a few items here and there when you go grocery shopping instead of buying in bulk.

    4. Make Entrees That Do Double Duty

    Eating the same thing for lunch and dinner isn’t exciting, but it’s a proven way to save money on food.

    Check out Taste of Home’s 150 freezer casserole recipes to find meals for your family that you can use for at least two meals.

    5. Find Out What Day Your Grocery Store Marks Down Items

    Grocery stores usually discount items that are close to expiring on a specific day of the week. Asking a store associate what day and time they mark down items is a smart way to score discounts you won’t find in your weekly grocery store ad.

    6. Get Super Cheap Food With These 2 Apps

    Two apps are working to reduce food waste — and pass the savings on to you.

    Too Good To Go and Flashfood connect businesses with consumers willing to purchase food near its expiration date at a steep discount.

    There are tons of stories online of frugal folks finding dealssteep discounts from restaurants, bakeries and grocery stores by checking these apps, which often provide bundles of food for less than $15.

    The biggest drawback about these food waste apps is they’re only available in select U.S. cities. Still, it is worth downloading them (they’re both free) to see if you can score discounted food.

    7. Check High and Low on the Grocery Shelves

    Next time you go to the grocery store, check the top and bottom shelves first. Grocery stores know that most people only look at the middle area, so that’s where more expensive items tend to be.

    Pro Tip

    Before your next grocery run, sign up to be on the Nielsen Consumer Panel. If selected, you’ll use their app to scan grocery items’ barcodes, which earn you points you can redeem for gift cards.

    8. Consider A Meatless Monday

    With meat prices higher than ever, picking just one day a week to go meat-free can cut your costs.

    Try these 10 meatless Monday recipes to replace chicken, pork, beef and fish once a week, save money and stretch your meat supply.

    9. Learn New Recipes That Fit Your Budget

    We all need a little inspiration sometimes.

    Glossy cookbooks and celebrity cooking shows are nice. But where can you actually learn to cook, in your own kitchen, on a budget?

    Check out this list of seven budget food bloggers who can teach you how to cook cheap, delicious meals at home.

    A chef named Frankie Celenza hosts a series called “Struggle Meals” which teaches you how to cook dishes for $2 or less per serving along with ways to save money on groceries and practical meal planning advice.

    Looking for even more ways to save money on food? Check out these 334 tips from our best food articles. 

    Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder. She focuses on retirement, investing, taxes and life insurance. 


    rachel.christian@thepennyhoarder.com (Rachel Christian, CEPF®)

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  • 3 Surprisingly Easy Ways to Make Money on Audible

    3 Surprisingly Easy Ways to Make Money on Audible

    Over its nearly 30-year run, Audible has become a household name for online audiobooks. It’s nearly impossible to listen to a podcast these days without the host advertising an Audible subscription.

    There is a good reason why all your favorite online services seem to advertise Audible: They can make good money doing so, and so can you. We’ll dive into how to make money on Audible and why it can be a solid side gig for extra cash.

    What Is Audible?

    Audible is an online audiobook service where book lovers can purchase their favorite published works in audio form. The service launched in 1995 and today offers its vast library to individuals either a la carte or via a variable subscription model. Audible has also expanded into the world of podcasts.

    For those who subscribe to Audible, the service offers multiple subscription tiers, each providing you with a specific number of credits. The credits either replenish monthly or annually and can be exchanged for audiobooks.

    Listeners can then enjoy their selected spoken word entertainment via Audible apps on smartphones and other smart devices.

    3 Simple Ways to Make Money on Audible

    While not always the first thought of those looking to pick up a side gig, Audible can be a lucrative offering for those willing to put in the work. Whether you want to dig into your creative side, write and narrate a book, or become an Audible affiliate, we’ll showcase a few ways to increase your bank balance with the service.

    Join the Audible Affiliate Program

    One of the easiest ways to earn money with the Audible platform is to engage in affiliate marketing using the company’s tools. Your favorite podcasts and YouTubers have done it, and now you can, too, with some work. Affiliate marketing is a perfect option for influencers looking to monetize their reach on social media.

    To get started, all you need to do is become a member of the Audible Creator Program (Audible Affiliate Program). Once signed up, you’ll be able to promote a custom URL to others in hopes that they sign up for an Audible 30-day free trial. Not only will your listeners get a free trial to Audible with a free audiobook, but you’ll receive a $15 commission for each trial you generate.

    If you’re already a member of the Amazon Associate Program, you can choose to promote Audible within your existing agreement with Amazon. For an Audible free trial sign-up, you’ll earn $5, while a Gold Digital Membership will net you $10. You can also earn money for a la carte purchases, with each audiobook worth 50 cents.

    Create Your Own Audiobook

    Ready to get your creative juices flowing? Consider creating your own audiobook for Audible. If you’ve got a story that you’ve been working on or even a book that you’ve already independently created, you may want to sell audio versions of it.

    Turning your written word into an audiobook is easier than you think, thanks to the ACX platform. Brought to you by Audible and Amazon, ACX, also known as the Audiobook Creation Exchange, is a marketplace that enables professional narrators, authors and publishers to work together to create audiobooks.

    Pro Tip

    If you aren’t up to writing your own book to be converted into an audio masterpiece, consider hiring a freelance writer to craft the book for you — all you need is an intriguing subject matter.

    If you already have an audio version of your book (audio files), ACX helps you easily upload your content to multiple retail channels, including Audible, Amazon and iTunes. ACX offers numerous production earnings and cost models, so you can select what fits you best. Resources are also provided for those who want assistance promoting their books once available.

    Become an Audiobook Narrator

    Do you have the golden voice? Then you should consider narrating audiobooks to make some extra income on the side. All you need to get started with your audiobook narrator side gig is a good-quality microphone, a working computer and a quiet place to record. There are plenty of places where you can get started with voice work, one being the ACX platform.

    In addition to offering a way for writers and publishers to have their written works turned into audiobooks, ACX provides a platform for voice artists to further their careers. ACX currently has nearly 800 titles open for voice auditions. Of course, other websites exist for selling your voice, including Voices.com and platforms such as Fiverr.

    If you aren’t having any luck with voice auditions, you can consider voicing a public domain book, even though it likely won’t net you any money. But the process will allow you to familiarize yourself with the steps involved in producing a free audiobook and give you voice material to provide in future auditions. LibriVox is an excellent platform to get started.

    Frequently Asked Questions (FAQ)

    Can You Actually Make Money From Audible?

    Yes, you can make money using the Audible platform. There are three primary methods: becoming an affiliate, producing your audiobook or narrating audiobooks via the ACX platform.

    How Much Do Audible Narrators Get Paid?

    Not all Audible narrators get paid the same. If you are starting out, you may make only about $10 an hour for your time. However, a more experienced narrator may drive hundreds of dollars per hour.

    How Do I Start Making Money on Audible?

    Suppose you’re looking at how to make money on Audible. In that case, we suggest you either begin by signing up for the Audible Creator Program, in which you can earn commissions on 30-day trial sign-ups, or using the Audible ACX platform to make money narrating titles.

    How Do I Get Paid to Read Audiobooks?

    We recommend that you start with the ACX platform. Designed by Audible and Amazon, ACX enables voice narrators (such as yourself) to connect with authors and publishers. You can try out for audiobook auditions and, if selected, earn money reading books for the platform.

    Michael Archambault is a senior writer for The Penny Hoarder specializing in technology.


    michael.archambault@thepennyhoarder.com (Michael Archambault)

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  • Bookmark These Black Financial Influencers

    Bookmark These Black Financial Influencers

    This photo is comprised of three different photos of black people who are black financial experts everyone should know about.


    Kevin L. Matthews II, left, is a former financial adviser turned investment educator. Bola Sokunbi, middle, empowers women with financial knowledge to make good changes in their lives. Amon and Christina Browning retired young, moved overseas and now share smart advice on how to do the same on their blog. Photo courtesy of Kevin Matthews, Caroline Beffa Photography and Amon Browning 

    Learning from a diverse set of people helps to expand your viewpoints, sharpen your empathy and increase your knowledge base. Being able to finally achieve financial wellness is just a bonus.

    Likewise, the personal finance gurus you follow online and on social media should ideally represent different cultural backgrounds.

    We’ve created this list of eight Black financial influencers who are enriching the personal finance space with their unique perspectives and expert advice on everything from eliminating student loan debt to surviving a competitive housing market. Whether you’re looking for a new podcast to listen to, a personal finance book to read or a course to improve your financial literacy, check out these money gurus.

    8 Black Financial Influencers to Follow

    Expand your financial literacy with these Black personal finance gurus who work to bridge the wealth gap through financial education.

    1. Tiffany ‘The Budgetnista’ Aliche

    Tiffany Aliche — better known as “The Budgetnista” — knows a thing or two about how to achieve financial wellness. She is a former preschool teacher who used her financial know-how to bounce back from job loss, foreclosure and debt to grow a multimillion-dollar business based on personal finance education.

    Aliche created an online school, the Live Richer Academy, and has over 485,000 members in her Dream Catchers community group on Facebook. She’s an author whose latest book, “Get Good With Money,” came out in March 2021.

    Aliche was also the driving force behind getting a law passed in her home state of New Jersey to make financial education mandatory for all middle school students.

    2. Mandi Woodruff-Santos of MandiMoney

    Looking to get advice from an inclusive wealth-building advocate? MandiMoney founder Mandi Woodruff-Santos and her community of MandiMoney Makers are a great place to start. As a career and money expert, Woodruff-Santos regularly lends her personal finance know-how to national outlets such as CNN, Business Insider and more.

    In addition to her Makers Academy and the “Just Quit” toolkit, Woodruff-Santos also co-hosts the “Brown Ambition” podcast, which was nominated for best business and finance podcast at the 2022 iHeartRadio Podcast Awards. Operating as a “judgment-free zone” for ambitious Black and brown women since 2016, podcast guests have included Stacey Abrams, Imani Walker and other first-generation wealth builders.

    3. Amon and Christina Browning of Our Rich Journey

    Amon and Christina Browning of Our Rich Journey are former government employees who retired at age 39 and 41, moved overseas and now share smart advice on how to do the same.

    The Brownings offer courses in investing, relocating to Portugal and pursuing F.I.R.E. (which stands for Financial Independence Retire Early). You can also check out their videos on investing, financial habits, early retirement and more on the Our Rich Journey YouTube channel.

    4. Kiersten and Julien Saunders of Rich and Regular

    Kiersten and Julien Saunders want to shatter the notion that talking about money is taboo. With their platform Rich and Regular, this couple’s mission is to inspire better conversations about money.

    Watch the Saunderses’ web series “Money on the Table” on YouTube. In the second season of the series, they chat with a variety of special guests on topics like entrepreneurship, estate planning and investing. Or keep up with their blog for updates on their financial journey.

    5. Michelle Singletary

    Michelle Singletary is an award-winning financial journalist and author. She pens “The Color of Money” personal finance column for The Washington Post, which is syndicated in newspapers nationwide.

    Singletary is also the author of several personal finance books, including “What to Do With Your Money When Crisis Hits: A Survival Guide.” She has made numerous television and radio appearances, sharing her financial expertise with the masses.

    6. Kevin L. Matthews II of BuildingBread

    Kevin L. Matthews II is a former financial adviser turned investment educator. He has taken what he learned helping clients manage multimillion-dollar portfolios and created a platform, BuildingBread, where he helps beginners start investing and building generational wealth.

    Sign up for the Breadwinner’s Circle — a free weekly newsletter with tips for new investors — or check out one of Matthews’ courses on investing. Matthews is also the author of “From Burning to Blueprint: Rebuilding Black Wall Street After a Century of Silence.”

    7. Rianka Dorsainvil

    As a certified financial planner and a thought leader in the financial planning profession, Rianka Dorsainvil likes to lead by example. Dorsainvil is also the co-CEO of 2050 Wealth Partners, a virtual, fee-only comprehensive financial planning firm.

    Dorsainvil’s podcast, “2050 Trailblazers,” speaks to her passion for diversifying the financial planning industry. She hosts professionals from advisory or brokerage services as well as financial literacy experts to share insights on how to achieve long-term financial goals.

    8. Bola Sokunbi of Clever Girl Finance

    Bola Sokunbi is a certified financial education instructor (CFEI), and she’s all about empowering women with the financial knowledge they need to make positive changes in their lives. One of Sokunbi’s inspiring accomplishments: She was able to save her first $100,000 in a little over three years without a six-figure annual salary.

    Sokunbi’s Clever Girl Finance brand is more than just a blog. Clever Girl Finance offers free financial courses on topics like saving, budgeting, investing and building multiple streams of income. You can subscribe to the “Clever Girls Know” podcast, watch the Clever Girl Finance YouTube channel or read one of Sokunbi’s Clever Girl Finance books.

    Kaz Weida is a senior writer at the Penny Hoarder. Nicole Dow is a former senior writer at The Penny Hoarder. 


    kaz.Weida@thepennyhoarder.com (Kaz Weida)

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  • Ellevest Review 2023: Pros and Cons

    Ellevest Review 2023: Pros and Cons

    Women have fought for a place at the proverbial table, and now they’re showing up strong. During the pandemic, more businesses have been started by female founders, and more women than men have entered higher education.

    Even so, fewer investors are female, and the gender pay gap persists. That’s where Ellevest comes in.

    Ellevest is an investing service aimed at tackling women’s unique financial burdens, taking into account things like reduced wages growths, career breaks and longevity. We love this focus but also like that Ellevest is open to all users, regardless of gender or identity.

    In fact, whether these gender burdens apply to you or not, Ellevest’s personalized advice for banking and investing makes Ellevest a good investing choice. Plus, with two membership plans, you can tailor the service to find your financial fit.

    In our Ellevest review, we’ll start with a quick rundown on how investing with Ellevest works, then walk you through the membership options, and finally flesh out each of the important features Ellevest offers so that you can get all the information you need to decide how best to start growing your money your way.

    How Does Investing With Ellevest Work?

    Ellevest uses a robo-advisor to develop an investing portfolio that matches your targeted goals and timeline. You simply download the app, enter some basic information like your age, gender, income, etc, and then set a financial goal.

    Do you want to buy a house in five years? Start a family? Create an emergency fund? Or build wealth in general? Ellevest will take specific goals into account and create a mix of ETFs (exchange traded funds) and mutual funds for you to invest in.

    Before moving onto the portfolio specifics, however, you have to sign up for the specific Ellevest membership that you want. Starting at $5 a month, Ellevest offers two membership tiers with different costs and perks for each. Jump to the next section if you’re curious which one will work best for you.

    Once you’ve signed up for your membership, you’re ready to invest. With Ellevest, you don’t get to choose individual stocks or bonds; instead, you simply pick between their two portfolio offerings:

    While both are created with your particular risk tolerance and financial goals in mind, the Ellevest Impact Portfolios are focused on furthering positive social impacts and advancing women’s leadership positions.

    Because Ellevest’s first priority is helping you meet your financial goal, not all of your funds will be placed in impact investments if you choose the Impact Portfolio, but Ellevest will find the best way to balance your financial needs with positive social change. Socially conscious and fiscally responsible, we love it!

    This specialization and impact does come with slightly higher fund fees (between .13% to .19%), so if you’re strictly looking for financial gains, the Ellevest Core Portfolio is a good option. Like the Impact Portfolio, it’s diversified and personalized for you with slightly lower fund fees of .05% to .10%.

    Once you’ve picked your portfolio, then you’re done–you’re officially an investor.

    While the investing is done, Ellevest doesn’t stop trying to help you grow your wealth–and financial knowledge–with perks like automatic paycheck direct deposit that allows a set amount to be deposited into your investment each month or free financial workshops and articles. If there’s anything we love, it’s a no-stress way to grow wealth and stay well-informed. Well done, Ellevest.

    Ellevest Membership Choices

    In order to invest with Ellevest, you have to pick a membership. Most other investment options have a percentage-based fee that charges more the more money you put into your investment; Ellevest, on the other hand, has flat fee memberships. Basically, you can put in a dollar or a million and your fee doesn’t change.

    Ellevest offers two different membership plans:

    • Ellevest Plus
    • Ellevest Executive

    Both of these plans include discounted access to financial planners and career coaches, retirement services, and  free educational resources. The differences come down to the discount on one-on-one help and the number of accounts you can set up.

    Ellevest Plus

    Best for Retirement Savers

    Key Features

    • 30% off financial planners and career coaches
    • Access to retirement accounts

    Ellevest Plus gets you investing and offers you access to a personal retirement plan and discounted financial planners and coaches. At $5 a month, we like the specialized help to start saving for retirement.

    Ellevest Plus

    Minimum opening deposit

    n/a

    Management or advisory fees

    $5 a month

    Accounts offered

    Ind. taxable, traditional, Roth, and SEP IRAs

    More Information about Ellevest Plus

    Ellevest Plus members get all the learning perks Ellevest offers to help you expand your financial know-how, plus  you also get access to a retirement account to help you build a bigger nest egg. We love the personalized retirement planning and guidance on things like the IRA transfer process or how to invest a 401(k). 

    At $5 a month, it’s perfectly reasonable, but it’s worth noting that you’ll need to invest a decent amount to keep it affordable. Basically, if you’re only investing $100, then $5 is a higher fee than most percentage-based fees that other robo advisor services offer on the market. If you’re looking to invest several thousand or more, however, then Ellevest’s affordability checks out.

    Ellevest Executive

    Best for Bigger Financial Goals

    Key Features

    • 50% off financial planners and career coaches
    • Same features as Ellevest Plus
    • Five customized investing accounts

    Ellevest Executive is perfect for those with bigger financial goals. You get all the benefits of the previous membership — retirement accounts and learning resources— and now five customizable investing accounts.

    Ellevest Executive

    Minimum opening deposit

    n/a

    Management or advisory fees

    $9 a month

    Accounts offered

    Ind. taxable, traditional, Roth, and SEP IRAs

    More Information about Ellevest Executive

    Ellevest Executive allows for more customization with the ability to save for multiple goals with different levels of risk at the same time. For $9 a month, you can now create high risk accounts and low risk accounts for different goals based on your timeline and risk tolerance. Plus, the added benefit of 50% off financial planners and career coaches lets you take advantage of more of these services, so you can build your wealth or reach your goals faster. 

    We love Ellevest memberships options because of their straightforward and simple membership-based model. You know exactly what you’ll be paying and what you’ll be getting. Just pick and start investing.

    Ellevest Account Offerings

    Ellevest offers individual taxable accounts, and traditional, Roth, and SEP IRAs. At first, we were a little disappointed in the simplicity of portfolio offerings. Ellevest doesn’t offer specialized accounts like 529 educational accounts or joint or custodial funds. While this is a bummer, it’s this simplicity that makes investing with Ellevest easy.

    Basically, if you’re looking for every financial vehicle on the market, look elsewhere, but if you’re looking for an easy start, Ellevest is a good investing choice.

    Private Wealth Management

    Ellevest offers Private Wealth Management for high and ultra-high net worth individuals, families, and institutions. Again, Ellevest approaches private wealth management with personalization in mind. They work as a fiduciary with straightforward fees and well-published services that start with your financial goals.

    Ellevest also brings its belief that every dollar can have an impact to its private wealth management services by allowing you to share your values with your advisors and helping develop an intentional strategy for your wealth.

    Other Important Features

    Coaching

    Ellevest offers coaching in an a-la-carte fashion that allows you to get exactly what you need. There are special coaching sessions for all your financial needs: how to find a job, negotiate your salary, create a budget, prepare for retirement, etc.

    Packages range from $20 for group workshops to several thousand for a full financial planning package. Remember, you get discounts on these packages depending on your Ellevest membership. You get anywhere from 30% off with Ellevest Plusto 50% off with Ellevest Executive.

    Taxes Optimization

    It’s aggravating to earn money through investments and then watch it all disappear to capital gains taxes. Ellevest does its best to develop the best strategy to leave your money in your own hands through Ellevest Tax Minimization Methodology (TMM). Through TMM, Ellevest strategically reduces your taxes, when possible, through a combination of taxable and tax-deferred investments.

    Most robo-advisor services do automatic tax loss harvesting. Ellevest, however, believes that the benefit of tax loss harvesting depends on your specific tax situation, investments, and tax rate, so they don’t automatically apply tax loss harvesting. For some, this will be beneficial and for some this will be a loss. It just depends on your personal situation, so Ellevest does not apply it to your portfolio.

    There are different perspectives on tax loss harvesting, but for Ellevest, it’s always about doing what’s right for each investor’s situation.

    Pros and Cons of Ellevest

    We know that’s a lot of information, so here’s the breakdown of how we think each feature and aspect of Ellevest stacks up.


    Pros

    • Straight-forward fees
    • Goal-focused investing
    • Takes into account previously ignored gendered issues
    • Impact portfolio options
    • Discounted access to career/financial coaches
    • A la carte one-on-one sessions with career and financial coaches and CFPs
    • Private wealth management


    Cons

    • No tax-loss harvesting automatically
    • Can’t trade yourself — no active management
    • No joint or custodial accounts
    • Membership fees can be high if not investing a lot of money

    So Is Ellevest Worth It?

    In all honesty, we love Ellevest. With goal-focused investing, Ellevest makes investing manageable and achievable. We do wish they’d have more options for account types, missing joint, custodial, and 529s, but we applaud the simplicity.

    On the flipside, while Ellevest’s flat-fee structure is simple, it can also be more expensive than other robo-advisor fee structures. It all depends on how much you’re planning on investing.

    Overall, however, we love that Ellevest tackles sometimes ignored gendered issues like longevity and career breaks and makes gaining wealth approachable, achievable, and – with the impact portfolio option – socially responsible.

    Frequently Asked Questions (FAQs) About Ellevest

    Still have questions? We’ve gathered up all of the most common questions to help you make your decision.

    Is My Money Safe with Ellevest?

    Your money is safe with Ellevest. Ellevest uses Goldman Sachs Custody Solutions, a SEC-registered broker-dealer and custodian, to safeguard the securities and cash in your account. Because of this, in the unlikely event that the brokerage fails, the Security Investment Protection Corporation (SIPC) will cover losses up to $500,000. 

    Is There Risk with Ellevest?

    There is always risk to your money when it comes to investing. Investing definitely follows the no risk, no reward way of life, but we think Ellevest does a good job navigating that risk.

    Who Is Ellevest Owned By?

    Sallie L Krawcheck is the CEO and co-founder of Ellevest. She formerly led Merrill Lynch Wealth Management and Smith Barney and was the CFO of Citigroup. Her co-founder is company president Charlie Kroll. Kross was the architect of the start-up Andera, an online banking software company.

    What Broker Does Ellevest Use?

    Ellevest uses Goldman Sachs Custody Solutions, an SEC-registered broker-dealer and custodian.

    Who Are Ellevest’s Competitors?

    Ellevest’s top competitors include Betterment, Wealthfront, and SoFi Automated Investing.

    Contributor Whitney Hansen writes for The Penny Hoarder on personal finance topics including banking and investing.


    whit.hansen130@gmail.com (Whitney Hansen)

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  • 17 Legit Ways to Get Paid to Write

    17 Legit Ways to Get Paid to Write

    Getting paid to write may sound easy, but the reality is a little more complicated. Freelance writing can be hard to break into, and the pay can be low (or nonexistent) for beginners.

    The trick is to get your first few articles or creative pieces published and then use them to score bigger clients and better pay. And even if long-term freelancing isn’t your goal, building a portfolio that showcases your published work can bolster your career as a writer or subject-matter expert.

    However, publishing those first few pieces is typically the hardest part of your writing journey. To help, we’ve compiled several places where you can get paid to write now. We’ve also included tried-and-true techniques to allow you to grow as a writer and, ideally, make more money writing in the long-term.

    Get Paid to Write for Flat-Rate Websites, Blogs and More

    If you’re new to freelance writing, one of the first things you may notice is how opaque the whole process is. Websites, blogs and publications often rely on armies of freelancers, but their contributor guidelines and pay are often nowhere to be found.

    Instead of diving straight into negotiations with editors about assignments and pay, first try to find a site or publication that has a straightforward process for contributors so that you know exactly what they’re looking for and how much they’re paying. (We’ll cover pitching and negotiating further below.)

    Ready to make money writing online? Here are 20 sites to try pitching:

    1. Copyhackers

    Copyhackers is a content company based in Canada. It provides educational materials to help new copywriters as well as paid opportunities for writers to publish lengthy articles on Copyhackers’ blog.

    Its submission guidelines are clear: You should be well versed in the topic that you’re pitching. And you should expect to be writing blog posts that are 2,000 words or more “unless it’s extremely wonderfully amazingly readable reading.”

    Pay: $300 to $1,000 per blog post

    Categories/Topics: Advertising, branding, UX (User Experience) or marketing concepts; freelance lifestyle or advice; entrepreneurship

    2. Listverse

    As its name implies, Listverse specializes in listicles aka list posts. These are highly clickable posts where each main point is part of a numbered list (sort of like the article you’re reading right now!).

    The contributor guidelines mention that you can write articles related to “any topic you like” — sports, self-help, personal stories, or gaming excluded — so long as it’s interesting, well-researched and in the form of a list of at least 10 with two paragraphs per listing.

    To narrow that down ever so slightly, the website is broken into several topics: bizarre, entertainment, general knowledge, lifestyle, science, society and more. Your articles should roughly pertain to those areas.

    Note: Listverse will only pay freelance writers via PayPal.

    Pay: $100 per list post

    Categories/Topics:  Bizarre, entertainment, general knowledge, lifestyle, science, society and more

    Need a banking service that’s built for freelancers, helping you save for taxes and keep track of your expenses? Check out Lili. (It’s free!)

    3. Narratively

    To understand what type of articles Narratively publishes, look no further than its tagline: “Human stories, boldly told.” All sections of the website are open to submissions. Just be sure that your story is longform, gripping and has strong narrative elements.

    For an in-depth breakdown of the different sections and story types, read Narratively’s submission guidelines. You’ll need a Submittable account to send in your draft.

    Pay: $300 to $400 per article

    Categories/Topics:  Personal essays, extraordinary high school sports stories, unexpected family businesses, hidden history, and reported articles with a narrative, human-interest approach

    4. Reader’s Digest

    Reader’s Digest needs no introduction. But what you probably didn’t know is that it offers one of the funnest and low-risk ways to get paid to write.

    But instead of swinging straight for the big leagues with a front-cover feature story, you can submit jokes and micro-stories to Reader’s Digest, which will publish them online and in the print magazine. If your submission is selected, you’ll get $100 a pop. (That’s among the highest per-word rates in the industry.)

    Be sure to follow the appropriate guidelines for jokes and 100-word true stories.

    Pay: $100

    Categories/Topics: Jokes or true personal stories (100 words or fewer)

    5. Unemploymentville

    According to its website, Unemploymentville is “a place for anyone who has felt the sting of being out of work.”

    It also happens to be a place you can write guest blog posts if you have interesting small-business ideas, helpful job-searching techniques or personal stories about dealing with job loss.

    Unemploymentville accepts submissions every other month. You can only submit stories in January, March, May, July, September, and November.

    Pay: $25 to $75 per blog post

    Categories/Topics:  Unemployment, job hunting, side hustles, personal essays related to finding work

    6. Writer’s Digest

    Writer’s Digest is a century-old magazine dedicated to publishing “everything writers need to stay inspired, to improve their craft, to understand the unique challenges of publishing today, and to get their work noticed.”

    According to the submission guidelines, Writer’s Digest accepts submissions for a variety of sections of the magazine, and it occasionally accepts cold pitches for guest posts online.

    Pay: 30 to 50 cents per word (print); or $50 to $100 (online)

    Categories/Topics: Personal essays, memoirs manuscripts and feature stories of interest to the writing community

    7. RankPay

    RankPay specializes in providing business solutions with services like PPC, content marketing, and website design.

    According to the Blogger Program submission guidelines, RankPay accepts article submissions that are useful, well-written, actionable, and of course 100% original content. It takes about 2 weeks for a response once you submit an article; not all submissions will receive a response.

    Pay: $50 per blog post

    Categories/Topics: SEO, content marketing, small business

    8. B. Michelle Pippin

    Michelle Pippin is the founder and CEO of Women Who WOW, an organization of women entrepreneurs. Writers with first-hand business experience can earn money by being published on the company blog or through a private newsletter.

    Pippin requires hires writers with actual first-hand business experience, particularly on topics relating to women entrepreneurs. You’ll earn more money if your article is published in the members-only print newsletter, though it can never be republished elsewhere.

    Pay: $50-$150 per blog post

    Categories/Topics: First-hand business experience, marketing and profit “hacks”

    Chris Zuppa/The Penny Hoarder

    Get Paid to Write Using Freelance Websites

    To diversify your income as a freelance writer, you can also sign up for freelance marketplaces, sometimes referred to as content mills. For these types of freelance websites, there’s typically some kind of screening process involved before you start working with clients.

    Sometimes the companies will feed freelance gigs to you, and you can accept or decline them. Other times clients will reach out to you personally through the marketplace’s messaging system. Payment varies by marketplace, but it is always funneled through the marketplace instead of coming directly from the client.

    Pro Tip

    Freelance marketplaces are a low-risk way to test the waters as a freelance writer, but they aren’t the most lucrative long-term option.

    9. CopyPress

    CopyPress is a content-marketing agency that provides its own content management system that freelancers can use to connect with projects from CopyPress’ clients.

    While it offers some freelance gigs for designers, developers and influencers, content writing and editing is CopyPress’ bread and butter.

    Sign up for free and start your training.

    Pay: About 6 to 10 cents per word (writer); 1 to 2 cents per word (editor)

    Categories/Topics: Varies by project

    10. Fiverr

    Started in 2010, Fiverr is a freelance-service marketplace that has grown to become almost synonymous with freelancing. You can offer almost any professional service imaginable on the site, but freelance writing services are especially popular.

    You need to create a freelancer profile to start bidding on and accepting freelance gigs.

    And contrary to its name, you are allowed to charge whatever amount you want — not just $5. However, Fiverr takes 20% of the cut.

    Pay: Your rate minus 20%

    Categories/Topics: Varies by project

    11. iWriter

    With iWriter, you can earn a fixed rate for every article. The rate largely depends on your star rating, which you receive based on a trial article and subsequent projects with clients.

    According to the site’s FAQ section, you earn 65% of the price that clients pay for typical assignments, which will translate into very low rates as you’re starting out.

    For example, the lowest tier of assignment is 150 words and would earn you 91 cents. Becoming an “elite plus” writer (4.85 rating or higher) will drastically increase your earnings. Complete a writer application to get started.

    Pay: 91 cents to $282.75 per project

    Categories/Topics: Varies by project

    12. nDash

    Founded in 2014 as a one-person operation, nDash now boasts a network of more than 10,000 freelance writers, which it connects with its clients, some of whom are household brand names.

    To get started with nDash, you need to sign up, create a free profile that highlights your expertise and past experience, and set up an account with Stripe so that you can get paid.

    You’ll be able to set your rates based on project type (blog, whitepaper, email, article, etc.). nDash does not take a cut of pay like other marketplaces. It charges its clients instead.

    Pay: 100% of your set rate ($150 to $450 on average, according to nDash)

    Categories/Topics: Varies by project

    13. Upwork

    Upwork is another massive online freelance marketplace. It caters to all kinds of industries, including and especially writing services.

    Before you accept gigs, you’ll need to register for free and set up a freelancer profile. With Upwork, you set your own rates and find work by pitching clients directly, accepting work from clients who reached out to you or by bidding on projects that clients posted.

    While Upwork is free to sign up, it charges you a fee based on your lifetime earnings with a client, between 5% and 20% of your set rate.

    Pay: Set rate minus 5% to 20%

    Categories/Topics: Varies by project

    A woman types on a keyboard as her pages fly around her in this photo illustration.
    Getty Images

    Get Paid to Write Poetry, Fiction and Other Creative Works

    To get paid to write creative work, forget almost everything you know about freelance writing. Getting your creative writing published is an entirely different beast, and very few people make a living writing poetry or fiction alone.

    Still, seeing your name in a literary journal can be a gratifying experience, and that experience is only heightened when you get paid for your creative masterpiece.

    Not all creative writing publishers pay. In fact, it’s common to see “submission fees,” meaning you are paying them to review your work. In those cases, publication isn’t guaranteed. You want to avoid those scenarios entirely when you’re just getting started.

    Below, we’ve included several publications that do not charge any such fees and will pay you a modest sum to boot.

    14. Blue Mountain Arts

    If your poetry has a more lyrical, feel-good vibe, consider writing for greeting cards. (Literary journals are notoriously snobbish toward this type of writing.)

    Blue Mountain Arts, a greeting card and gift company, accepts season poetry submissions online and by mail.

    First place receives $350. Second place receives $200. And third place receives $100. Winning poems are published in greeting cards and online. Outside of the poetry contest, you may also submit seasonal poems that follow these guidelines.

    Pay: $100 to $350 per poem

    Categories/Topics: Feel-good poetry related to special occasions

    15. Rattle

    Rattle is an online and print journal that publishes only poetry, and it offers poets weekly opportunities to get paid to write.

    While the print magazine publishes quarterly, Rattle also holds a weekly “Poets Respond” contest online that asks poets to write about a current event that has happened within the past week.

    Pay for acceptance into the print issue is $200 per poem, and online publication pays $100 per poem. Reference the appropriate submission guidelines before sending in your work.

    Pay: $100 to $200 per poem

    Categories/Topics: Poetry

    16. The Threepenny Review

    A quarterly literary magazine, The Threepenny Review publishes nonfiction essays, memoirs and reviews, fiction stories and poetry in print.

    Depending on the type of piece, you can expect between $200 and $400 per published work.

    According to the writer guidelines, The Threepenny Review doesn’t accept email submissions and doesn’t accept any submissions between May 1 and Dec. 31.

    Pay: $200 to $400

    Categories/Topics: Reviews, criticisms, memoirs and other nonfiction works; poetry and fiction

    17. Poetry Nook

    Poetry Nook is a website and forum for poets and poetry lovers. It’s operated by the literary magazine Plum White Press.

    Each week, Poetry Nook holds a free-entry poetry contest (for 350 weeks and counting). Multiple winners and honorable mentions may be chosen. Winners receive a $20 payment via PayPal, and honorable mentions receive $10.

    Poetry Nook’s competition is a great way for budding poets to get paid to write. There are no theme or length requirements for the poems, it’s “organic impression and memorability that matters,” according to the entry guidelines.

    Ensure you’re entering the correct contest, as the link changes each week. You can find the latest contest on Poetry Nook’s homepage.

    Pay: $10 to $20 per poem

    Categories/Topics: Poetry

    Getty Images

    Other Strategies to Get Paid to Write

    There’s much more to writing than freelance websites and open-calls for submissions. Once you feel comfortable (and perhaps after you have a few successful projects under your belt), you can start to implement some longer-term strategies to build your reputation as a successful writer.

    They might not be as clear cut as the options above, but they’re nonetheless important.

    Pitch to Your Favorite Publications

    Pitching unsolicited article ideas is a tricky and vague process. But pitching is a crucial skill for freelance writers, especially freelance journalists and content writers. There are untold opportunities to get published by your favorite alt-weekly, local newspaper, magazine or online publication, and they’re rarely (if ever) advertised.

    In our insider guide to pitching your article ideas, we lay out exactly how to find the right person to pitch and what to include in your pitch email.

    Here are some key takeaways:

    • Pitch the correct editor or your email will never get read.
    • Have a deep understanding of what the publication has already published on the topic.
    • Craft a short and sweet email that shows a busy editor that No. 1, your pitch is a good idea and No. 2 that you are the best person to write it.
    Pro Tip

    Finding an editor’s email can be difficult. Scour the publication’s masthead or staff page and use tools like Hunter.io to guess and verify specific editors’ email addresses.

    Even if the editor likes your idea, the work doesn’t stop there. You then need to be ready to negotiate your pay — another vague and informal process. Our guide will help you figure exactly out how much to charge for your freelance work.

    Start Your Own Blog

    If you’re interested in freelance writing or launching a freelance writing business, chances are you either already created a blog or you’re considering it. Blogging is incredibly popular among writing hobbyists, and it’s one of the first steps many new freelance writers take when they want to get paid to write.

    The truth is, blogging is tough to monetize. It’s certainly not a quick way to get paid to write, but it’s not obsolete either. It will take sustained effort to become a successful blogger. Luckily, we have a plethora of resources to help you.

    First, you’ll need to learn how to start a blog, if you haven’t already. This includes:

    • Choosing a writing niche
    • Selecting a catchy domain name and finding a web host for your site
    • Building a user-friendly blog

    Once the basics are set up, you’ll want to make a dedicated plan to monetize your blog. Successful monetization strategies often include:

    • Writing informative and authoritative blog posts that are optimized for search engines
    • Writing for other blogs and publications that allow you to link back to your own site
    • Signing up for affiliate partnerships with brands related to the topic you cover, so that you can earn a commission on sponsored links in your blog posts
    • Allowing advertisements on your pages, usually via Google AdSense, so that you can get paid when people visit your page and interact with the ads

    Due to the time investment of blogging, we recommend that you simultaneously write for some of the publications mentioned above so that you get some money coming in while you build your website. And don’t fret if it doesn’t take off. At the very least, your blog can double as a portfolio site to help you land other clients and gigs.

    Launch a Career as a Writer

    The freelance writing business isn’t for everyone. There are a lot of unpaid hours and late nights involved in getting things set up. (And that’s not mentioning additional tax burdens and lack of benefits.)

    The good news is that you can break into a career in writing by temporarily freelancing to build up a portfolio. Then you can use that portfolio to land a full-time job with health bennies and paid time off.

    What writing jobs are out there? Plenty — and aside from the obvious journalist and author jobs, too.

    Everywhere you look, there are words. Words on book covers. Words in your vehicle’s manual that teach you what that dang squiggly exclamation point symbol on your dashboard means. Words that entice you to buy stuff.

    You get the idea. There’s a person (or maybe even a team of people) behind all of those words, and they’re getting paid. Their titles include copywriter, UX writer, product writer, technical writer, content marketing writer and more.

    Even more good news: These types of jobs were already remote friendly before the pandemic. In fact, writing jobs are among the most commonly listed openings in The Penny Hoarder’s Work-From-Home Jobs Portal.

    So whether or not freelancing was your end goal, the published clips you rack up along the way can help you build an impressive portfolio, establish yourself as an expert on a certain topic and even launch your career as a full-time writer. The options are endless.

    Frequently Asked Questions (FAQs) About Writing for Money

    Here are answers to some of the most frequently asked questions about getting paid to write.

    Who Will Pay Me to Write?

    Plenty of people and publications will pay you to write articles, blog posts and more. If you’re freelancing, it all depends on how you find your client. Many companies hire writers as employees. Advertising agencies, online publications and marketing firms are among the most popular types of companies that directly hire writers.

    If you’re using a freelance website like Upwork, the pay will come from Upwork — not directly from the client, since Upwork operates like a matchmaker. 

    If you’re submitting your article or creative writing directly to a publication, it will pay you usually by direct deposit, check, PayPal or some other established payment method.

    Where Can I Submit Writing for Money?

    The easiest places to submit writing for money are publications that have clearly stated submission guidelines. Some websites, including content mills, online magazines and literary journals may accept submissions year-round and have their rates publicly displayed. We cover several such places to submit your writing in this article. 

    Alternatively, you can cold pitch magazines, newspapers and some blogs with your story idea and then negotiate your pay if they like your idea.

    How Can I Make Money Writing Online?

    Blogging and freelance websites like Fiverr and Upwork are among the most popular options for making money online by writing. But they’re not always the fastest and most lucrative options.

    In addition to those popular methods, you should also consider writing articles for blogs as well as more traditional types of publications like magazines, newspapers and literary journals — all of which are very likely to publish online.

    No one method is a cash cow, but if you combine them, it’s possible to make a living writing.

    Where Do I Find Freelance Writing Jobs?

    Finding freelance writing gigs is much easier if you diversify your sources. In addition to pitching publications directly and signing up for freelance websites, you should set up email alerts for a job board or two.

    Mediabistro, The Penny Hoarder Work-From-Home jobs portal, FlexJobs and sometimes even the standard job boards like Indeed and Glassdoor can be useful tools in hunting down quality writing jobs.

    And instead of waiting for the gig to be posted on a job board, you can go directly to the source. Big online publishers such as DotDash (which owns Verywell, Investopedia, The Spruce and several other online publications) and Vox Media (which owns The Verge, Vox, Eater, Polygon and others) post freelance writer openings on their own job boards all the time.

    How Do I Start a Writing Career?

    Writing careers don’t always start by getting a degree in journalism or English, either (though a related degree certainly helps). Lots of writers find success by falling in love with writing later in life, choosing to freelance and slowly building up expertise and a portfolio before finally applying for a full-time job as a bonafide writer or journalist.

    One thing is for sure, whether by credentials or previously published work, you must be able to demonstrate your writing skills to land a job.

    Matt Matasci is a Southern California freelance writer who writes on technology and business, plus travel and lifestyle topics.


    mmatasc@gmail.com (Matt Matasci)

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  • Love to Read But Short on Time? 11 Places to Find Cheap Audiobooks

    Love to Read But Short on Time? 11 Places to Find Cheap Audiobooks

    The convenience and portability of audiobooks let you enjoy your love of reading on the go. But how do you save money on the audiobooks you want?

    There are a number of audiobook services available, but the options can be overwhelming. Finding the right audiobook service is a matter of finding the best one for how you like to read.

    11 Services for Cheap Audiobooks

    Here’s our rundown of some of the best audiobook services where you can grab a book for your ears.

    1. Audible

    Audible is a big name in audiobooks. As a part of Amazon, it’s heavily marketed and easily available, but it has its pros and cons.

    Pros

    • Audible boasts one of the largest audiobook libraries out there with more than 500,000  titles and around 100,000 podcasts, according to a company spokesperson. Whatever you like to read, you can probably find it on Audible.
    • You get to keep any titles you read even if you cancel your subscription.
    • You also get daily deals and an extra 30% discount on additional book purchases.
    • You can download the books you choose and listen offline.
    • You can try Audible out with a no-cost, 30-day trial period.
    • Amazon Prime members can try Audible free for 30 days while also receiving 2 credits (1 credit = 1 title) per month.

    Cons

    • Audible is a subscription service with five different subscription plans, the cheapest being $7.95 per month. At that lowest tier, though, you are unable to earn extra credits and you won’t get discounts on premium selection titles or access to exclusive sales.
    • The other membership plans are pricey. They include monthly subscriptions of $14.95 for one credit per month or $22.95 for two credits per month. Annual plans are also available; they cost $149.50 for 12 credits per year or $229.50 for 24 credits per year.
    • Unused credits expire after one year. They also expire when you cancel your membership.

    2. Audiobooks.com

    Audiobooks.com is another subscription service, much like Audible.

    Pros

    • Very large selection with more than 350,000 titles plus more than 10,000 free audiobooks.
    • Access to more than 100 million podcast episodes for free.
    • Your subscription includes one book per month.
    • You can buy extra credits as needed. One credit equals one book.
    • You get free extra VIP books each month with no additional charge. VIP titles are older, less popular books, but they aren’t all obscure. For example, one book currently on the list is Robert Louis Stevenson’s “Treasure Island.”
    • With a free 30-day trial you get one book free and can also select two books from the VIP collection that changes monthly.
    • You can stream books or download so you can listen offline.

    Cons

    • It’s more expensive than many options at $14.95 per month.

    3. Scribd

    Scribd is a subscription service that allows you to access “unlimited” audiobooks and also offers features like ebooks, podcasts and even sheet music.

    Pros

    • At $11.99 it’s cheaper than Audiobooks.com and you get to listen to as many books as you want.
    • There are a lot of extras like Kindle books, magazines and even sheet music available with your subscription.
    • You can choose from more than 2 million ebooks, 300,000 audiobooks and 1 million magazine and news articles.
    • It includes a 30-day free trial.

    Cons

    • The term “unlimited” isn’t 100% accurate. Users in the iPhone app store complain that after two or three popular books, your ability to read new and popular titles becomes very limited for the rest of the month.
    • You’re renting rather than buying the books, so you cannot keep them.
    • The platform is not loaded with extras like some of the other services.
    Getty Images

    4. Downpour

    For $12.99, subscription service Downpour gives you one credit (good for any one book) per month. You can spend them as you go or save them up. Or you can simply rent or buy books without a subscription, but you’ll pay a little more for each title.

    Pros

    • Less expensive than Audiobooks.com.
    • You own the books and can keep them even if you cancel.
    • You can download and listen offline.
    • You have the option to buy or rent books outside of the membership. Rentals are less expensive. But, if you buy the book, you’ll pay more than you would with a membership.

    Cons

    • Smaller selection with just 80,000 titles (and counting).
    • Each credit expires after 12 months.
    • Books for purchase are pricey, though there is a tab for “Daily Deals” with sections for downloads under $10, $5 and even 99 cents.

    5. Chirp

    Chirp is a sister site of Bookbub, an e-book site. When you sign up for the service, you get a daily email featuring special deals. Many of the deals are $3.99 or less for each book.

    Pros

    • No subscription needed, so you only pay for what you buy.
    • You buy rather than rent the books, so they’re yours to keep.
    • You can purchase from a wide selection of books at regular price.
    • There is a “my wishlist” section where you can list out the books you want to listen to and get alerts if they go on sale.

    Cons

    • The featured deals are random and aren’t catered to your taste, so you may or may not see books on sale that you actually want to read.

    6. Apple Books

    Apple Books is a store for Apple users to purchase audiobooks. It’s not a subscription site, just a pay-for-what-you-want store.

    Pros

    • New and popular books are available, as well as classics.
    • Apple editors curate general lists to help readers find new books.
    • You keep your audiobooks right on your phone or iPad.
    • You can download books and listen to them from your Apple Watch while you workout.
    • No pressure to download books to justify a monthly expense.

    Cons

    • Individual books can be expensive.

    7. Google Play Books

    Google Play Books is much like Apple Books, but for Android and PC users, and with a few more perks.

    Pros

    • No subscription, just buy what you like.
    • Listen to previews before committing.
    • Good sales and prices overall.
    • Can be used on iPhones and Macs.
    • Large selection of audiobooks.
    • Offers some free books.

    Cons

    •  Some users complain that the app is clunky.
    A couple listen to an audiobook from one of their devices.
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    8. Libro.fm

    Libro.fm is the independent bookstore of audiobook services — the anti-Audible if you will.

    Pros

    • Libro.fm donates a portion of every purchase you make to the locally owned bookstore of your choice.
    • No membership required.
    • However, you have an option to become a member for $14.99 per month, which gives you two audiobook credits initially, then one per month after and 30% off individual purchases.
    • More than 275,000 audiobooks are available, including 99% of all New York Times bestsellers.
    • You own the books you buy, meaning you keep them if you ever cancel your membership.
    • Offers free iOS and Android listening apps.

    Cons

    • Similarly priced plans through Audible and Audiobooks.com offer a larger catalog of books to choose from.

    9. Blinkist

    Blinkist is a unique service in that it offers condensed versions of popular nonfiction books for people who don’t feel like they have time to listen to entire books.

    Pros

    • It’s fairly inexpensive at only $8.34 per month.
    • You can try the service out for free for seven days.
    • Includes access to more than 5,500 nonfiction books in dozens of categories.
    • Most audiobooks can be listened to in 15 minutes or less.
    • Subscription includes unlimited access to all books.
    • If you like the condensed book, you can upgrade to the full version.

    Cons

    • Nonfiction only.
    • Good for a quick overview but not for in-depth knowledge.

    10. Librivox

    The Librivox audiobooks website declares “acoustical liberation of books in the public domain.” So what does that mean? Basically, it’s a free library of audiobooks that are old enough to have outlasted their copyright. They are read by volunteers.

    Pros

    • Completely free to use.
    • Lots of great classics like “Moby Dick,” “Frankenstein” and “The Life and Times of Frederick Douglas.”
    • Available in the Apple app store.

    Cons

    • Limited selection (40,000) with no recent titles.
    • No extras, such as podcasts.
    Curious about a career or side hustle as an audiobook narrator? Check out our guide that covers everything you need to know.

    11. Your Public Library System

    To find free audiobooks, you can always go to your local library and check out audiobooks on CD, but that’s so 2005. These days most library systems are hooked up with apps like OverDrive or Hoopla so you can check out audiobooks digitally on your phone, tablet or reader.

    Pros

    • With a library card, it’s completely free.
    • Not limited to your local library but connected to a large network of libraries, so there are many titles available.
    • You can place holds on titles you want if they are not currently available.

    Cons

    • You may not find every book you want.
    • Books are checked out just like non-digital copies, so they are limited and you may have to wait for certain books.
    • New and popular books frequently have a very long waiting list.
    • You do not keep the titles, just borrow.
    Pro Tip

    Public libraries lend so much more than books, audiobooks and movies. Depending on the library, you can borrow museum passes, tools, puzzles, cake pans, games and more

    Tyler Omoth is a contributor to The Penny Hoarder. Robert Bruce, a senior writer with The Penny Hoarder, also worked on this story.


    tyler@thepennyhoarder.com (Tyler Omoth)

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