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  • Bank of America Review 2023: Big Bank, Big Advantages

    Bank of America Review 2023: Big Bank, Big Advantages

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    As one of the largest financial institutions in the United States, Bank of America has a lot to offer. The range of personal and business account options is impressive, and the availability of bank branches makes it extremely convenient.

    BofA has had its share of controversies and its sheer size can sometimes make service inconsistent. In 2014, it was fined $16.65 billion for its role in the 2008 financial crisis. Additionally, some of the accounts are a bit lacking in features.

    In 2021, a number of banks and fintech platforms eliminated overdraft fees and Bank of America joined them in 2022, though not completely. It announced in January 2022 that it would drop its overdraft fee from $35 to $10 beginning in May. Other banks, most notably Capital One, have eliminated overdraft fees totally.

    Starting in February 2022, Bank of America eliminated insufficient funds fees and will also no longer allow customers to take out more than they have at the ATM. The $12 that it charged customers to move money from another account to cover a withdrawal will also be stopped.

    If you need overdraft protection in general, we’ve got some handy tips on how to keep from overdrawing your accounts.

    All that said, is Bank of America the right place for you to do your banking? Our deeper dive on what the bank offers will help you decide.

    This Bank of America review looks at the bank’s checking and savings features for individuals and small businesses, as well as its overall convenience and mobile banking features. Note that Bank of America’s credit cards and lending products are not included in this review.

    Checking Accounts

    Bank of America offers three checking accounts, each with its own attributes.

    Advantage SafeBalance Checking

    Best for Customers with Simple Needs

    Key Features

    • Low opening balance required
    • Multiple ways to waive the $8 monthly fee
    • No overdraft fees

    You can open Bank of America’s most basic checking account, Advantage SafeBalance Checking, with a pretty standard $25 minimum opening deposit.

    Advantage SafeBalance Checking

    Monthly fee

    $4.95 per month, but can be waived

    Interest

    None

    Minimum balance

    None

    ATM fees

    None at Bank of America ATMs.

    The AdvantageSafe Balance Checking account comes with $4.95 in monthly fees. Bank of America will waive this fee if you can check one of the following boxes:

    • You enroll in the Preferred Rewards program. To qualify as a Bank of America Preferred Rewards client, you need a three-month combined average of $20,000 in your Bank of America and Merrill Edge/Merrill Lynch accounts. That can be a tall order for a lot of customers.
    • You’re under 24 years old and in school.

    Two More Checking Accounts

    The next step up in BofA’s checking account offerings is Advantage Plus Checking. It comes with $12 in monthly fees, but it also has a couple more ways to avoid it. Besides enrolling in Preferred Rewards or qualifying as a student, you can avoid the monthly fee if you:

    • Have at least one qualifying direct deposit of $250 or more, or
    • Maintain a $1,500 minimum daily balance.

    Even part-time employees are likely to make a direct deposit of at least $250, so the fee shouldn’t be a major nuisance. Unfortunately, neither the AdvantageSafe Balance Checking account nor the Advantage Plus checking account offers interest on your money.

    AdvantageSafe Balance Checking does, however, offer Balance Connect, which allows account holders to connect accounts in order to prevent overdraft of the checking account. It also offers the opportunity to buy paper checks.

    To earn interest with a Bank of America checking account, you need to bump up to the Advantage Relationship checking account. This account offers up to 0.02% APY on your money, which is below the national average for interest checking accounts. You can get that increased if you join the Preferred Rewards program.

    Advantage Relationship bank accounts have a hefty $25 in monthly fees attached, but it can be waived with a combined balance of at least $10,000 in eligible linked accounts. However, Advantage Relationship offers no-fee banking services the other accounts do not offer, and free paper checks (of limited styles).

    Savings Accounts

    Bank of America’s basic savings account is a good beginner account and you can bump up to another level to receive more perks. There is also a savings account for minors.

    Advantage Savings Account

    Best for Customers Opening First Savings Account

    Key Features

    • Low opening deposit
    • No minimum daily balance
    • Cash back deals

    You won’t make any great gains on your money by way of interest with the Bank of America Advantage Savings account. You’ll earn just 0.01% APY, well below the national average for savings accounts. The only way to earn more is to become a Preferred Rewards member. There are three other tiers of savings accounts – Gold, Platinum and Platinum Honors, and each step up adds 0.01% to your APY.

    Advantage Savings Account

    Opening deposit

    $100

    Interest

    0.01% APY

    Minimum daily balance

    None, but if your balance is $500 your monthly service fee waived

    Bank of America’s basic savings account has a $100 minimum opening deposit. There’s also an $8 monthly fee that’s waived if:

    • You maintain a minimum daily balance of $500.
    • You’re a Preferred Rewards Member.
    • You link your savings account to your Bank of America Advantage Relationship Banking account (waiver applies to first four savings accounts).

    More About Savings

    If you’re looking to open a savings account for a minor, you’re in luck. BofA has a Minor Savings account. It only requires a $25 opening deposit, but there is no minimum balance requirement after that and no monthly maintenance fee. The interest rates are the same as for the Bank of America Advantage Savings account (0.01%), making it a perfect starter account to help get children in the habit of saving.

    Other Bank of America Features

    Because of its size — it has more than 200,000 employees and annual revenue in excess of $85 billion — Bank of America has many more features than smaller financial institutions. Here are some that we think you’d want to know about:

    Credit Cards

    Bank of America offers a (very) large number of credit card options. Some are Bank of America-branded cards, and some are third-party cards backed by Bank of America, like the Alaska Airlines Visa.

    These cards generally come with no annual fees and offer some type of reward, whether that’s cash back, travel rewards, or points. There are also options specifically geared towards students and people building credit.

    Credit cards (and credit in general) is a tricky subject—even the best card can get an unwise user in trouble. However, the Bank of America cards make decent options if you want, or need, a new credit card and want to keep things with the same financial institution.

    Loans

    Bank of America also offers a variety of loan options. These include mortgages, mortgage refinancing, home equity lines of credit, and various auto loans.

    For the most part, the advantages of using Bank of America over other lenders for these types of loans is to keep things in-house. For example, existing customers might be able to get discounts on various mortgage fees.

    Keep the Change

    We like the Keep the Change program. If you opt in to this feature, your debit card purchases will automatically be rounded up, and the leftover change is deposited into your Bank of America savings account. It’s a simple way to add to your savings without having to think about it, and the money can add up quickly.

    Certificate of Deposit

    If you’re looking for a certificate of deposit, you can start out with a minimum of $1,000. You can also choose your term from as little as 28 days up to 10 years. CD rates begin at  0.05% at the time of this writing.

    Small Business Banking

    Bank of America has a dedicated site just for small business banking. The site makes it easy to track your account and keep on top of things. That said, there are some shortcomings to its services.

    The Business Fundamentals Checking account isn’t interest-bearing and doesn’t list a minimum opening deposit amount. However, there is a $16 monthly service fee. This can be waived if you:

    • Spend $250 in net new purchases on a business debit or credit card.
    • Maintain an average monthly balance of $5,000 or more.
    • Maintain a minimum daily balance of $3,000.
    • Maintain a combined average monthly balance of $15,000 or more in your linked Bank of America accounts.
    • Qualify and enroll in the Preferred Rewards for Business program (waiver applies on up to four eligible business checking accounts.)

    You’ll get 200 free transactions per billing cycle and $7,500 worth of free cash deposits.

    Bank of America’s next-level account for small business checking is called the Business Advantage Checking. This account comes with a $29.95 monthly fee. To get this waived, you need to:

    • Spend $2,500 in net new purchases on a business credit card.
    • Maintain an average monthly balance of $15,000 or more.
    • Maintain a combined average monthly balance in your linked Bank of America accounts of at least $35,000.
    • Actively use one or both of these business services: Bank of America Merchant Services or Payroll Services.
    • Qualify for and enroll in the Preferred Rewards for Business program (first four checking accounts per enrolled business)

    This account comes with 500 free transactions and no fees for the first $20,000 of cash deposits. As you can see, the Business Advantage Checking is designed for businesses with a little heavier cash flow.

    Here is a comparison of the two business checking accounts.

    Convenience

    BoA has 3,900 bank locations. That number has been decreasing in recent years, though. It’s not hard to find a BoA ATM either as there are 16,000 in existence, though that number is less than half what is available for many of the nation’s growing online banks.

    As you would expect, Bank of America offers many modern-day banking conveniences like a phone app, online banking, and mobile deposits. It’s easy to forget just how powerful these features are until you have to go without them — particularly mobile deposits. Since paper checks are being used less and less these days, having to go to the bank to deposit one is a nuisance. Mobile deposit spares you that inconvenience.

    As with most bigger banks, you can do a lot more than just checking and savings with Bank of America. You can get a mortgage, car loan, credit cards and even some investment accounts linked with Merrill Lynch. They even have a Better Money Habits web page that provides financial wellness tips for consumers.

    The convenience is one of the best aspects of Bank of America, and one of the big reasons it gets picked over competitors. It’s everywhere, and offers nearly everything, so you don’t need to worry about maintaining accounts at multiple banks. That said, with the relatively poor interest rates on savings accounts, you may want to.

    Mobile Banking

    The BofA mobile banking app gets rave reviews. With a 4.8 out of 5 score in the Apple App Store and 4.6 of 5 in the Google Play Store, it doesn’t get much better.

    Users comment on its ease of use, as well as features like money transfers, mobile alerts for low funds, and the ability to deactivate a lost or stolen card. Its fingerprint and face recognition features make it easy to log in and keep your account safe, as well.

    Have you ever had your card declined because you are traveling? Bank of America’s phone app has a feature that you can turn on that will compare the location of your phone to where the transaction takes place. If your phone is nearby, they can assume it’s you and approve the transaction. That’s pretty slick and could save an enormous amount of hassle (unless the crook steals your phone and your card).

    If you like to feel a personal connection to your banking app, you can even tap into Erica, BofA’s virtual assistant to walk you through your banking tasks. It’s not the most creative name for a virtual assistant, but she gets the job done.

    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.

    Bank of America Review: The Pros and Cons

    We’ve rounded up pros and cons for one of the nation’s largest banks.


    Pros

    • The Keep the Change feature lets you add to your savings without thinking about it because it rounds up each debit card transaction and deposits the change into your savings account.
    • BoA’s mobile app is easy to use with some pretty advanced features you don’t find with a lot of banks, such as the ability to approve transactions as long as your phone is nearby.
    • There are 16,000 ATMS and almost 4,000 brick-and-mortar branches.
    • Between the plentiful physical locations, solid mobile app, and the generally great Bank of America customer service, it’s easy to bank with BoA.
    • Although a number of BoA accounts come with monthly fees, there are generally multiple ways to avoid them, such as by keeping a certain minimum balance.
    • In February 2022, BofA eliminated insufficient funds charges and will not allow customers to take out more than they have at the ATM.


    Cons

    • Bank of America continues to charge overdraft fees but in May 2022, the fees dropped from $35 to $10 per incident.
    • The APY rates for checking and savings accounts are well under average.
    • There’s an $8 monthly fee for savings accounts that do not keep a minimum balance of $500.

    Frequently Asked Questions (FAQs) About Bank of America

    Here are the answers to some of the most frequently asked questions about Bank of America, including a discussion of its reputation.

    Is Bank of America a Good Bank?

    Bank of America is an excellent bank if you value convenient branch locations and keeping all your money under one roof. It offers a wide range of checking account and savings account options, solid small business bank accounts, and a stronger customer experience than many other banks.

    What is the Reputation of Bank of America?

    Bank of America has a decidedly average reputation. Since it’s a large national bank, it’s possible to have an outstanding experience at one branch and a terrible experience at another just up the road. You may not get the same level of direct care that you’d find at a smaller institution, but the sheer availability may make up for it.

    Is Bank of America Better than Chase?

    That really depends on what you need from your bank. They’re both part of the Big Four: Chase, Bank of America, Wells Fargo, and Citigroup. As such, they each offer a wide variety of products, from checking and savings accounts to small business tools. To choose between the two, determine exactly what you need from your bank and then compare offerings. You may even want to mix and match, with checking accounts at one and savings at the other.

    Why is Bank of America the Best Bank?

    If we were to name Bank of America the best bank, it would be for convenience. Between the enormous number of physical locations, the wide range of bank accounts and products, and the sheer number of different ways to access those accounts and waive the various fees involved all add up to make BoA a fantastic option compared to other banks.

    Is Bank of America FDIC Insured?

    Yes. All bank of America accounts are FDIC insured. Coverage is offered for up to $250,000 per depositor, per insured bank, for each account. This covers checking accounts, savings accounts, money market savings accounts, and CDs — essentially all the personal finance options.

    Does Bank of America Offer Loans?

    Yes! Bank of America offers auto loans, mortgages, small business loans, and a single personal finance loan option called Balance Assist. Balance Assist is the only personal loan option and is capped at $500, so if you need a larger personal loan, you’ll have to look elsewhere.

    Penny Hoarder contributor Dave Schafer has been writing professionally for nearly a decade, covering topics ranging from personal finance to software and consumer tech. Information from contributor Kent McDill h is included in this report.


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    dave@dschaferwrites.com (Dave Schafer)

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  • Ellevest Review 2023: Pros and Cons

    Ellevest Review 2023: Pros and Cons

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    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.


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    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

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    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.


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  • The 7 Best Money Transfer Apps of 2023

    The 7 Best Money Transfer Apps of 2023

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    Money transfer apps have changed how we pay each other. Also called peer-to-peer (P2P) payment apps, money transfer apps allow users to send and receive money using their smartphones or an online platform, simply by linking their checking account or credit card.

    Transferring money via smartphone app is safe, easy and convenient, but not all apps are created equal. The best money transfer apps of 2023 set themselves apart with low (or no) fees to transfer cash, immediate transfers, heightened security measures and strong customer service. You can also rely on ratings in the Apple App Store and Google Play to determine if a money transfer service is up to snuff.

    How Money Transfer Apps Work

    Money transfer apps are an easy, secure way to exchange money between friends and family. They also make it easy to manage payments as a freelancer, independent contractor or someone earning extra cash from a hobby.

    So how do money transfer apps work? By downloading an app on your phone, or in some cases going to a website, you can send money to people. All you need is their mobile phone number or email address.

    The apps are linked to bank accounts, debit cards or credit cards, which is how they access your funds and transfer money with just a few taps. Some payments are free, but others have fees, which often depends on how you fund the transfer.

    When someone sends you money through the app, you can get access to the money by initiating a transfer to your bank account. Some apps allow you to store money with their service for easy access.

    These types of apps are not the same as the payment-processing apps businesses use for transactions, but some companies do offer both.

    All of the apps are available wherever you usually get apps for your phone. In the case of platforms like PayPal, you can also create online via a web browser.

    What to Look for With Money Transfer Apps

    When looking at the different apps, here are some things to look for.

    • Fees: Some apps charge a fee for paying someone by credit card or sending money internationally.
    • Transfer time: How long does it take to get your money? Some are instant while some take several days.
    • Security: Is the transaction encrypted on both ends?
    • Limits: Some apps limit the number of transactions you can do in a set period of time. Others limit the amount of money you can send.
    • Customer service: How can you contact someone if there is a mistake with a transfer or a transfer happens that you didn’t authorize?
    • Protection: Unlike bank accounts, many balances in money transfer apps are not insured against loss or fraud.
    Pro Tip

    Always double-check the recipient’s information before you confirm a payment. Once you send a payment, is it often impossible to get it back unless the recipient refuses it.

    The 7 Best Money Transfer Apps of 2023

    • PayPal: Best for freelancers and business owners
    • Venmo: Best for everyday users
    • Zelle: Best for fee-free transfers
    • Cash App: Best for cryptocurrency investors
    • Meta Pay: Best for Facebook users
    • Apple Pay: Best for Apple users
    • Google Pay: Best for Android users

    How the Best Money Transfer Apps Stack Up

    The best app for you might not be the best for someone else. It all depends how you plan to use them. Chances are, you’ll use different ones for different purposes.

    Money Transfer Apps at a Glance

    App Top Feature Best For
    PayPal Widely used Freelancers/biz owners GET DETAILS
    Venmo Social media feel Everyday users GET DETAILS
    Zelle Built into bank apps Fee-free transfers GET DETAILS
    Cash App Special in-app offers Cryptocurrency investors GET DETAILS
    Meta Pay No fees Facebook users GET DETAILS
    Apple Pay Retail shopping Apple users GET DETAILS
    Google Pay Retail shopping Android users GET DETAILS

    Zelle

    Most Accommodating Money Transfer App

    Key Features

    • Free instant transfers
    • Built into banking apps
    • Strong security measures

    Zelle is part of most banking apps and allows you to securely send money almost instantly between bank accounts. It works with more than 1,700 U.S. banks and credit unions. Each bank determines the types of accounts that are eligible to be part of Zelle. You cannot link credit cards, international debit cards or international bank accounts to Zelle.

    Fees for domestic transfers

    n/a

    Fees for instant bank transfers

    n/a

    Apple App Store rating

    4.8 stars

    Google Play rating

    4.1 stars

    More Information About Zelle

    How it works: You need an email address or a phone number to send money. The sender and recipient don’t need to be customers of the same bank; they only need to both be enrolled in Zelle.

    In most cases, you’ll need your regular online banking user name and password to enroll and link accounts within Zelle. However, if you want to use the Zelle app — instead of initiating transfers using your bank’s app — you’ll need a separate login.

    If you don’t have a smartphone, you can also send money using Zelle through your bank’s website.

    Fees: Zelle charges no fees for sending or receiving money. However, individual banks might have a fee.

    Because Zelle is built into your mobile banking app, there’s no wait time to transfer the money you receive via Zelle to your bank account — and thus no fee for an instant transfer.

    Pros/Cons: The fact you probably already have the capability of using Zelle within your online or mobile banking app or online is a definite plus. The only thing you need to do is to sign up using an email or mobile phone number and you can start sending and receiving money right away. The fact that transfers are also almost immediate is a good thing because you get paid quickly; just make sure you’re sending money to the right person. It is not possible to use a credit card with Zelle, just linked bank accounts.

    Cash App

    Most Global-Friendly Money Transfer App

    Key Features

    • Free tax filing
    • Cryptocurrency options
    • Strong security measures

    Cash App sets itself apart in a couple of ways. For one, it not only handles regular currencies; it also handles cryptocurrency. You can also get special offers called “cash boosts,” which can include discounts when you shop. Cash App has increasingly evolved into a true fintech company, offering banking services, investment options and even 100% free tax filing.

    Fees for domestic transfers

    n/a

    Fees for instant bank transfers

    0.5% to 1.75%

    Apple App Store rating

    4.8 stars

    Google Play rating

    4.7 stars

    More Information About Cash App

    How it works: To send money, you need to know the recipient’s email address, phone number or unique ID the app calls a $Cashtag. 

    When you sign up, you can link a bank account to the app, but it’s not required. (You can also fund the app by routing direct deposits to the app or transferring funds — since Cash App comes with its own account and routing numbers.)

    You can also store funds in the app and treat it like a traditional bank account, with a fee-free debit card and early access to direct deposits. Plus, you can invest in stocks and Bitcoin, all within the app.

    Fees: There are no fees to send or receive money on Cash App even internationally (UK and the EU). Most transfers take only minutes.

    There is a 3% fee to send money using a credit card, however. 

    Like the other apps, Cash App is secure, and transferring your money to your bank account is free but can take a few days. Instant cash outs will cost 0.5% to 1.75%.

    Cash App allows you to use your money to buy stocks or convert dollars to Bitcoin. While Cash App doesn’t ch

    International transfers: Cash App is mostly used within the United States, but it can also be used to facilitate transfers between the US and the United Kingdom and European Union.

    Pros/Cons: Cash App markets itself as more than just a money transfer app. The app also has a banking feature that allows users to receive their paychecks and other direct deposits earlier than most banks. But be aware, because transactions are fast, it’s almost impossible to get your money back if you send it to the wrong person — unless that person is nice enough to return it. While Cash App is growing in popularity, you won’t find as many users with the app as you would with competitors like Venmo. And while Cash App bills itself as a replacement for a true bank, the app misses too many hallmarks of an actual bank account, like interest on “deposits.”

    PayPal

    Most Experienced Money Transfer App

    Key Features

    • Free domestic transfers
    • Great tools for freelancers
    • Strong security measures

    PayPal is the grandparent of money transfer apps, as it’s been around the longest and is probably the most familiar to many people. It’s ideal for anyone with a side hustle, as it’s simple to send invoices.

    PayPal Money Transfer App

    Fees for domestic transfers

    n/a

    Fees for instant bank transfers

    1.75% (up to $25)

    Apple App Store rating

    4.8 stars

    Google Play rating

    4.3 stars

    More Information About PayPal

    How it works: PayPal is secure, and you can send money domestically and internationally, although fees apply for international transfers. You can use PayPal online and through the phone app. To send money via PayPal, you’ll need to know the email address or mobile number of the person you’re sending money to. Both the payer and the recipient will need PayPal accounts to transfer money. People can also request payments through PayPal.

    Fees: The fee structure for PayPal can get confusing. You won’t pay any fees if you’re sending money from a linked bank account or through the app (domestically). However, if you want to use a credit or debit card, you’ll pay a 2.9% fee (plus a transaction fee if you’re using a currency other than the U.S.). Those transaction fees vary.

    Transferring your PayPal balance to a linked bank account is free, but can take a few days. Instant transfers are available for a 1.75% fee. You can also have PayPal mail a paper check to you for $1.50.

    International transfers: You can transfer money internationally, but if you’re sending money to someone outside of the U.S., be aware that you’ll be subject to a different fee structure. PayPal also offers business accounts for different fees.

    Pros/Cons: PayPal has protections in place to keep you from losing money. If either the sender or recipient has an issue, PayPal will put a hold on funds. PayPal’s fees are on the higher end, especially for business users.

    Venmo

    Most Like Social Media Money Transfer App

    Key Features

    • Free domestic transfers
    • Widely used service
    • Strong security measures

    Venmo has a social media feel, including a feed that allows you to share who you paid and what you paid them for. (You can even use emojis!) Venmo is among the most popular money transfer apps, meaning it’s likely your friends and family also use it. It’s a secure way to pay while also connecting you with the people you pay. (Venmo’s parent company is PayPal.) If you’re not interested in publicizing your financial transactions with friends and family, you can turn this option off.

    Fees for domestic transfers

    n/a

    Fees for instant bank transfers

    1.75% (up to $25)

    Apple App Store rating

    4.9 stars

    Google Play rating

    4.2 stars

    More Information About Venmo

    How it works: You can send money to anyone, as long as they also have a Venmo account; due to its popularity, you’re more likely to find Venmo users than users of other P2P cash transfer apps. To transfer, you just need their mobile number, email address or handle. Users can also request payments.

    Fees: Venmo is secure and is free to send money using a balance within the Venmo app, linked bank account, debit card or prepaid card. You’ll pay a 3% fee when you use a credit card to send money. 

    Transferring money from Venmo to your linked bank account is free with a standard transfer. This could take some time, usually 1-3 business days. 

    If you’re short on time, you can initiate instant transfers, which carry a 1.75% fee or a minimum of $0.25 and a maximum of $25. Venmo users can also buy or sell cryptocurrencies with fees attached.

    International transfers: Both sender and receiver need to have U.S. bank accounts, so sending money abroad isn’t possible.

    Pros/Cons: The fact that Venmo feels like social media can be good or bad, depending how you look at it. Others you are connected to will know who you’re conducting business with and when. For those of us who are bad at math, a function of the app will help you split bills. It’s also easy to request money from people within the app. The major downside is the instant transfer fee.

    Meta Pay

    Best for Facebook Fans

    Key Features

    • Built into Facebook (Meta) properties
    • No fees
    • Good customer service

    If you want to send money to people you’re already connected with on Facebook, Messenger and Instagram, Meta Pay might work for you. You can also use Meta Pay to buy many items you see in Facebook or Instagram ads or from Facebook Marketplace or Facebook Shops. You can even use it to donate to a cause or make in-game purchases. One big difference between Meta Pay and other money transfer apps is you cannot link it directly to a bank account. Instead, you connect the service to a credit card, debit card or PayPal account.

    Facebook Pay Money Transfer

    Fees for domestic transfers

    n/a

    Fees for instant bank transfers

    n/a

    Apple App Store rating

    n/a

    Google Play rating

    n/a

    More Information About Meta Pay

    How it works: Meta Pay (formerly Facebook Pay) isn’t a standalone app, but rather an enhancement to those primary social media apps, so you’ll need to set it up in each app.

    To set up Meta Pay:

    Instagram: You can first set things up on Facebook or Messenger and then connect the payment info through the Instagram app, or you can set it up directly in the Instagram app.

    Messenger: You can connect your Meta Pay information to Messenger or set it up in the Messenger app. Once everything is working, you just attach a payment like you attach a photo.  

    Meta Pay is secure, but if you want added security, you can create a PIN or use your device’s biometrics security every time you make a payment.

    Fees: There is no fee to send or receive money through Meta Pay.

    International transfers: Meta Pay is expanding to other countries outside of the United States. 

    Pros/Cons: It’s super-convenient to be able to send money, donate money, and buy things from whatever app you might be using and familiar with. You might want to set up extra security features just in case someone gets a hold of your accounts. Customer support is available 24/7 via chat or email. Meta continues to face controversy for how it handles private information; carefully consider adding banking information to your account. Though money sent to friends transfers instantly, it may take up to five days to post to their bank account.

    Google Pay

    Best for Google Fans

    Key Features

    • Widely accepted at retailers
    • Strong security measures
    • Available on Google and Apple devices

    Google Pay isn’t just for Android — Apple users can also download the Google Pay app, if they like its features enough. As a spending platform, Google Play is great, with in-app cashback rewards that you can claim when making everyday purchases. But Google Play is also an easy way to send and receive money.

    Fees for domestic transfers

    n/a

    Fees for instant bank transfers

    1.5%

    Apple App Store rating

    4.2 stars

    Google Play rating

    n/a

    More Information about Google Pay

    How they work: The evolution of Google Pay has been a roller coaster. At various times in the last decade-plus, we’ve had Google Wallet, Android Pay, Google Wallet (again), Google Pay (and briefly Google Pay Send), Google Wallet (again again) and now a world where both Google Wallet and Google Pay coexist. You’ll be forgiven if you aren’t a little confused.

    But fans of Google may find Google Pay relatively straightforward. You can fund the account with a debit card or bank account, then use the app to pay friends, split bills and make purchases wherever Google Pay is accepted.

    The app also has cool features that help you track your spending. The built-in cashback rewards program is also a homerun for shoppers who remember to check what deals are available.

    Fees: No fees for transfer of money to family or friends and also no payment when you use the app to pay for purchases. However, if you want to transfer your balance back to your debit card, you’ll pay a 1.5% fee (minimum $0.31, weirdly). There isn’t a fee to transfer to your bank account.

    Pros and Cons: Google Pay is widely accepted and makes it easy to send money and split bills. Security is top-notch, and the cashback rewards are a nice touch. It’s been challenging to keep up with the constant changes to the Google Pay/Google Wallet family, however. 

    How Long Does It Take to Transfer Money With an App?

    Peer-to-peer money transfers in apps generally take just a few minutes. However, as the recipient of money, you may want to move the funds out of the app and into your bank account. That can take much longer, typically 1 to 3 days. Many apps allow you to use an instant transfer service but charge a fee to do so, usually a percentage of the transaction.

    Transferring Money Internationally

    While some of the above money transfer apps can be used to transfer internationally, other apps and websites focus primarily on transferring large sums of money internationally. Check exchange rates in each app when you send money internationally.

    Beware: Fees for international money transfers can be high. However, popular apps for international money transfers are:

    • WorldRemit: People in more than 50 countries can send money in more than 70 currencies to recipients in more than 130 countries using a phone or computer. Many of the transfers happen instantly. Fees vary. One recent change is WorldRemit no longer accepts Google Pay.
    • Western Union: Has been around for years and works in more than 200 countries and territories.
    • OFX: Competitive rates compared to banks and has a minimum of $1,000.
    • Remitly: This app adds the possibility of physically delivering the money to the recipient’s home instead of just a cash pickup or depositing it into a bank account. The rates vary by country.

    Money Transfer Etiquette

    In today’s world of instant gratification and constant connections, what is proper money transfer etiquette?

    In July 2019, Venmo surveyed 1,000 users and then partnered with an etiquette expert to help create some modern money manners.

    Here are a few of the survey’s findings:

    • 75% said it’s appropriate to wait 24 hours before issuing a request for payment.
    • 24 hours is the longest you should wait before paying someone.
    • 42% said the person who pays for dinner when the check comes back for the entire group should be paid immediately — before anyone leaves the table.
    • 24% said no amount is too small to ask for, even $1 to $5.

    As for advice from the etiquette expert, Venmo suggests:

    • Practice social awareness: When using apps that have a social component, be careful of emojis and inside jokes that could embarrass someone. You never know who might see it.
    • Respond quickly: If you can’t pay someone within 24 hours, send the person a text or email saying why you can’t pay them back.
    • Stay in contact: Don’t just ghost someone and make your friends and family track you down. It isn’t fun.
    • Discuss: If you’re going to split payments, discuss this plan before an event. Don’t surprise someone with a money request. Also, if you pick up the check and say something like “I got this,” don’t expect people to pay you back.
    • Correct mistakes: If a money request has the wrong amount, politely point out the discrepancy, and decline the transaction. Send back money if someone sends you more than you were expecting.

    The survey also found 65% of people say it’s more stressful to owe someone money than to be owed money. The money transfer apps make it easy to relieve that stress — by paying up.

    Frequently Asked Questions (FAQs) About Money Transfer Apps

    We’ve rounded up answers to some of the most popular questions about money transfer apps so that you can decide which one is right for you.

    What is the Safest App to Transfer Money?

    All of the apps mentioned have several security features in place to keep your account numbers and personal information private. Just make sure you send money to the right person. Once you tap send, it’s sometimes difficult to get the money back.

    What is the Best Money Transfer App?

    Each of the money transfer apps on our list is a strong performer. Deciding which app is right for you comes down to your preferences, including smartphone operating system, security protocols and fees for instant transfers.

    What Money Transfer App Is the Fastest?

    Zelle provides instant transfers between bank accounts for free. Most of the other apps will do instant transfers, but there is a cost associated with them.

    What Happens If I Send Money to the Wrong Person?

    Sadly, that depends on the app. In some cases, you can contact customer service and they can help reverse the process. In others, you have to rely on the honesty of the wrong recipient to decline the transfer.

    Do I Need a Smartphone to Use Money Transfer Apps?

    It depends. If your bank or credit union uses Zelle, you can often send and receive money from the financial institution’s website. It’s similar for PayPal. Venmo has some services available online, but not all.

    What Is the Cheapest Money Transfer App?

    All the apps on our list offer free transfers. However, if you need money right away, most apps charge a fee to transfer funds to your bank instantly.

    Tiffani Sherman is a Florida-based freelance reporter with more than 25 years of experience writing about finance, health, travel and other topics. Contributor Timothy Moore covers banking and investing topics for The Penny Hoarder.


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  • The 7 Best Savings Accounts for Kids of 2023

    The 7 Best Savings Accounts for Kids of 2023

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    Do you remember how old you were when you had your first bank account? I opened my first account alongside my mom (who was listed as the joint owner) at a nearby credit union when I was in the third grade. For years, that account served as a savings vehicle where I put money from holidays, eighth-grade graduation and — at 15 years old  — my first job.

    That’s actually not too outside the norm: In 2022, 39% of American children had a savings account, according to Statista.

    And money management should start early for kids. Parents should make trips to the bank with them — and make them a big deal — beginning around age 6. You can help them open a savings account, and use that experience to introduce different money concepts, like how they’ll earn interest by leaving their money in the bank.

    Good news: Many big-name banks offer accounts for minors, and lots of them are low- or no-fee. Here’s what you need to know about the best savings accounts for kids and other bank products.

    Why You Should Open a Bank Account for a Minor

    It may be tempting to hold on to your children’s money for them in your own savings account or let them keep it in a piggy bank. But it’s a good idea to open a bank account for them for several reasons.

    Opening a bank account can:

    1. Help kids learn the value of money, from saving to spending it.
    2. Help them understand compound interest and how it makes their money grow.
    3. Help them learn to delay instant gratification by saving toward a goal.

    Opening an account is also a great way to teach, or reinforce, good budgeting habits. Your child can start learning about saving for college, put money in a high-yield savings account or create a sinking fund (typically, money outside of a traditional savings account or emergency fund) for a summer vacation. By starting early, they’ll have a better understanding of how money can be a tool to help them achieve their goals and learn about financial responsibility.

    How to Open a Bank Account for Someone Under 18

    While a minor can have a bank account in their name, an adult must open the account. So, a parent or guardian can open a joint checking or savings account with their child, thereby becoming the joint account holder. An immediate family member other than a parent or guardian, like an older sibling, can usually open an account with a minor, too.

    Some accounts cater to young children, while others focus on teens. Different banks and states may also have rules about the age of a minor on an account, so you’ll want to do your due diligence.=

    For the most part, you can open accounts online or in person. Bank requirements will vary, but you typically need:

    • Your child’s Social Security Number (SSN).
    • Their passport or birth certificate.
    • Your (the parent or guardian) own identifying information.

    What You Should Look for in Savings Accounts for Minors

    Before deciding on an account, you’ll want to consider the following and make a checklist of the most important features for you and your family:

    • Is there a minimum deposit required?
    • Is there a monthly fee?
    • What’s the annual percentage yield (APY) of an account?
    • Is there a daily balance requirement?
    • Is there a service fee?

    And some additional questions you may want to consider:

    • Do you get a free debit account?
    • Is there a mobile banking app?
    • Are there add-ons — financial education materials, the opportunity to meet with a financial advisor etc. — available?

    Other features may be important to you — say, the ability to transfer money into your child’s account as often as you want. Or the ability to have multiple accounts within the bank or credit union to take advantage of more than just a checking or savings account.

    Keep in mind that if a brick-and-mortar bank isn’t for you and your kid, an online bank or other financial institution is worth looking into for an account. For this assessment, we focused on large banks with physical locations who also have strong online offerings and mobile apps.

    7 of the Best Savings Accounts for Kids

    Bank Min. Initial Deposit Min. Daily or Avg. Monthly Balance Monthly Service Fee APY
    Bank of America Advantage Savings Account $100 N/A if you’re younger than 18 $0 if you’re younger than 18 0.01% GET DETAILS
    Chase Savings Account $0 N/A $0 if you’re younger than 18 N/A GET DETAILS
    PNC Bank “S” is for Savings Account $0 N/A if you’re younger than 18 $0 or $5 0.01% GET DETAILS
    Wells Fargo Way2Save Savings Account $25 N/A if primary account holder is under 24 $0 or $5 0.15% GET DETAILS
    TD Simple Savings Account $0 $0 if you’re younger than 18 $0 if you’re younger than 18 0.02% GET DETAILS
    Capital One Kids Savings Account $0 N/A N/A 0.30% GET DETAILS
    Alliant Credit Union Kids Savings Account $5 (Alliant will cover) $100 average daily balance to earn interest $0 (if you choose e-statements) 2.70% GET DETAILS

    Bank of America Advantage Savings

    Best for Easy Account Access

    Key Features

    • 24/7 access online
    • $100 required opening deposit
    • ots of branches and ATMs around the U.S.

    Bank of America is a well-known investment bank and financial services holding company. BofA exists outside of the U.S. — it’s the second-largest bank in the world — and has 4,600 branches and over 16,000 ATMs. On top of checking and savings accounts, Bank of America offers a host of financial products such as auto loans, credit cards and IRAs.

    Bank of America Advantage Savings

    APY

    0.01%

    Opening balance required

    $100

    Monthly maintenance fee

    $8/month (can be waived)

    Mobile app

    Yes

    More Information About Bank of America Advantage Savings

    BofA used to have a couple of account options set up for minors, but has seemingly rolled them into a general savings account. Just about anyone can open a Bank of America Advantage Savings account, but there are special considerations for the under-18 crowd. For example, the monthly fee is waived if the account holder is a minor. If you’re looking for a checking account — and you’re a student under 25 — Bank of America also offers an Advantage SafeBalance Banking account with no monthly or overdraft fees.

    Chase Savings Account

    Best for Physical Branches

    Key Features

    • Companion checking account for minors
    • Autosave feature through Chase checking
    • 5,000 branches

    JP Morgan Chase Bank, typically referred to as just Chase or Chase Bank, is one of the “big four banks” in the U.S. The financial giant has over 4,700 physical branches and around 16,000 ATMs in the country. Founded more than 200 years ago, today, Chase is one of the biggest banks worldwide and has a variety of banking services.

    Chase Savings Account

    APY

    n/a

    Opening balance required

    $0

    Monthly maintenance fee

    $5/month (can be waived)

    Mobile app

    Yes

    More Information About Chase Savings

    While the Chase Savings account is relatively low-frills (no interest is a bummer, for sure), Chase has a large number of brick-and-mortar branches and ATMs for members who prefer easy access to their money and in-person support. Looking for other minor-friendly banking options? Chase also has a fee-free debit card for kids. Additionally, if your minor is at least 17 and heading to college, Chase is offering a $100 bonus for opening a new Chase College Checking account. Your teen can redeem the offer online and they’ll receive the money after following a couple of easy steps. (Psst, mom and dad — this is another teachable moment for your teens since they have to be organized and follow the required steps to earn this money.)

    PNC Bank “S” is for Savings

    Best for Financial Literacy

    Key Features

    • A particularly kid-friendly account
    • Interest on balances as low as $1
    • Offers an interactive online experience

    PNC is a bank and financial services company based in Pittsburgh, PA. It was founded over 170 years ago and has nearly 2,700 locations throughout the U.S. Whether you want to take out a student loan or manage your financial life through its Virtual Wallet account, PNC offers a number of different services for its members.

    PNC Bank “S” is for Savings

    APY

    0.01%

    Opening balance required

    $0

    Monthly maintenance fee

    $5/month (can be waived)

    Mobile app

    Yes

    More Information About PNC Bank ‘S’ Account

    This PNC savings account aims to help children learn about finances through its interactive online platform. The “Sesame Street”-themed learning center is an interactive experience for kids, who can learn about goal-setting; saving, sharing and spending; and even receive money tips from Elmo and gang.

    Wells Fargo Way2Save Savings

    Best for Fee-Free Banking

    Key Features

    • You can set up automatic transfers
    • No monthly fee for members under 24
    • Approximately 12,000 ATMs

    Wells Fargo is another large financial services company with locations around the globe (in 35 countries, to be exact). Founded over 90 years ago, Wells Fargo has over 5,000 retail branches and 13,000 ATMs. The institution offers a variety of banking services and products for members to manage money.

    Wells Fargo Way2Save Savings

    APY

    0.15%

    Opening balance required

    $25

    Monthly maintenance fee

    $5/month (can be waived)

    Mobile app

    Yes

    More Information about Wells Fargo Way2Save Account

    The Way2Save Savings account offers free online transfers between Wells Fargo accounts and free online statements to help teach minors about money management. Unlike some savings accounts for minors that charge a monthly fee once a member turns 18, this account waives fees for those 24 and younger — one less thing to worry about paying for.

    TD Simple Savings

    Best for No Minimum Balance Requirements

    Key Features

    • No fee or daily balance requirement
    • Companion checking account
    • Bonus for checking account users

    TD Bank has many branches in states in the northeast and on the east coast. With roughly 1,200 locations, TD Bank offers loans, various types of bank accounts, small business banking and more. The chain also offers mobile and online banking, and typically has new-member monetary bonuses.

    TD Simple Savings

    APY

    0.02%

    Opening balance required

    $0

    Monthly maintenance fee

    $5/month (can be waived)

    Mobile app

    yes

    More Information About TD Simple Savings

    The TD Simple Savings account waives monthly maintenance fees and the daily minimum balance requirement for all savers 18 and under. Members can take advantage of instant-issue debit cards, and TD also offers a number of online guides for personal finance education. Need a checking account, too? Right now, the TD Convenience Checking account is offering new members up to a $300 bonus when they follow certain guidelines.

    Capital One Kids Savings

    Best for Fee-Free, Interest-Earning Saving

    Key Features

    • Top-rated app
    • High APY
    • 70,000 ATMs

    Capital One is a bank holding company that offers everything from credit cards to savings accounts. Beyond commercial and consumer banking, Capital One does a lot of business with its credit card division (you’ve likely seen commercials with celebrities promoting these popular cards). Capital One boasts over 700 branch locations and 70K ATMs nationwide.

    Capital One Kids Savings

    APY

    0.30%

    Opening balance required

    $0

    Monthly maintenance fee

    $0

    Mobile app

    Yes

    More Information About Capital One Kids Savings

    This straightforward, no-fee account from Capital One offers a solid 0.30% APY. You can establish automatic savings plans and savings goals so your kids can watch their balance grow — fee-free. Teens will also appreciate its easy-to-use mobile app and tons of ATM access.

    Alliant Kids Savings Account

    Best for High APY

    Key Features

    • APY 12x higher than most competitors
    • Geared toward kids under 13
    • Alliant will cover required opening balance

    Alliant is a credit union based out of Chicago. While located in Illinois, prospective members across the U.S. can join if they meet certain requirements (such as being a member of a qualifying organization or related to a current member). Alliant Credit Union offers 24/7 account services, and has checking and savings accounts, auto loans and more.

    Alliant Kids Savings Account

    APY

    2.70%

    Opening balance required

    $5 (Alliant will cover it)

    Monthly maintenance fee

    $0 (if you choose e-statements)

    Mobile app

    Yes

    More Information About Alliant Savings

    The Alliant Kids Savings Account offers an APY 12x higher than most banks, so your child will earn some extra money on their savings in no time. While there are fees associated with the account, they’re easy enough to avoid. And once your child turns 13, they can move to an Alliant High-Rate Savings account to continue saving.

    Check Out Your Local Credit Union

    It’s always worth checking in on your neighborhood credit union to see what, if anything, they offer in terms of a youth savings account . Or, they may be able to offer more personalized service, an account with a higher APY or other perks.

    A quick note: There are money accounts for children outside of traditional bank accounts that are known as UTMAs, which stands for Uniform Transfers to Minors Act. In these types of accounts, gifts of high value (money, real estate, etc.) “can be transferred to a custodian for the benefit of a minor,” according to the U.S. Social Security Administration, until the child becomes a legal adult. The savings are tax-free for the minor until they assume the account. But the assets are considered part of the custodian’s estate and are taxed accordingly.

    Roth IRAs, Uniform Gifts to Minors Act (UGMA) and 529 College Savings Plans are other examples of savings vehicles for the under-18 set.

    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.

    Frequently Asked Questions (FAQs) About Savings Accounts for Kids

    We know you have a lot of questions about savings accounts for kids. We’ve rounded up the answers to some of the most commonly asked questions.

    What’s the Youngest Age a Child Can Be to Have a Bank Account?

    You have to be 18 to open a bank account on your own. However, a parent or guardian can open an account for their child at any age if they choose to have their name on it and help manage (or jointly own) the account. Sometimes an older sibling can be a joint owner of an account for a younger sibling, too.

    If you’re under 18 or shopping around for an account for a minor, make sure to look for bank accounts that cater to children. A variety of big and small banks have accounts that offer special incentives for the under-18 crowd, such as targeted educational material or a reprieve from monthly fees, usually for kids 17 and younger. However, some institutions extend these incentives until a member has graduated from college.

    What Are the Best Savings Accounts for Kids?

    Capital One offers a comprehensive savings account for minors — decent APY, no fees, etc. But ultimately, the best savings account for kids will be any account that lets them save money for low or no fees. From there, you can seek out specifics that will help them meet their savings goals.

    The best children’s savings account will depend on several factors. For instance, your kid might respond best to a teen checking and savings account that offers a mobile app and online banking. Or, they might prefer an account with a competitive interest rate, even if it means they have to adhere to a particular average monthly balance to earn it.

    What is the Best Kind of Account to Open for a Child?

    Look for a savings account with low or no fees, that has savings tools and that offers opportunities to open other banking products (like a checking account) for further saving and earning. And don’t forget, you can always switch accounts: If one falls out of favor with you or your child, it can pay (quite literally) to open an account elsewhere.

    There are a few items you want to prioritize when shopping around for a kid’s savings account for children. For instance, a bank account that requires a high minimum balance or charges a two-digit monthly fee, likely wouldn’t be ideal. Especially for a child who might be opening their first account with the proceeds of a lemonade stand or some birthday cash — money that isn’t regularly coming in.

    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. Freelancer Larissa Runkle contributed to this report. 


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  • How to Plan for Retirement From Your 20s to Your 60s

    How to Plan for Retirement From Your 20s to Your 60s

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    You probably don’t need us to tell you that the earlier you start saving for retirement, the better. But let’s face it: For a lot of people, the problem isn’t that they don’t understand how compounding works. They start saving late because their paychecks will only stretch so far.

    Whether you’re in your 20s or your golden years are fast-approaching, saving and investing whatever you can will help make your retirement more comfortable. We’ll discuss how to save for retirement during each decade, along with the hurdles you may face at different stages of life.

    How Much Should You Save for Retirement?

    A good rule of thumb is to save between 10% and 20% of pre-tax income for retirement. But the truth is, the actual amount you need to save for retirement depends on a lot of factors, including:

    • Your age. If you get a late start, you’ll need to save more.
    • Whether your employer matches contributions. The 10% to 20% guideline includes your employer’s match. So if your employer matches your contributions dollar-for-dollar, you may be able to get away with less.
    • How aggressively you invest. Taking more risk usually leads to larger returns, but your losses will be steeper if the stock market tanks.
    • How long you plan to spend in retirement. It’s impossible to predict how long you’ll be able to work or how long you’ll live. But if you plan to retire early or people in your family often live into their mid-90s, you’ll want to save more.

    How to Save for Retirement at Every Age

    Now that you’re ready to start saving, here’s a decade-by-decade breakdown of savings strategies and how to make your retirement a priority.

    Saving for Retirement in Your 20s

    A dollar invested in your 20s is worth more than a dollar invested in your 30s or 40s. The problem: When you’re living on an entry-level salary, you just don’t have that many dollars to invest, particularly if you have student loan debt.

    Prioritize Your 401(k) Match

    If your company offers a 401(k) plan, a 403(b) plan or any retirement account with matching contributions, contribute enough to get the full match — unless of course you wouldn’t be able to pay bills as a result. The stock market delivers annual returns of about 8% on average. But if your employer gives you a 50% match, you’re getting a 50% return on your contribution before your money is even invested. That’s free money no investor would ever pass up.

    Pro Tip

    If you have a child under 18 who earns money from working, they can contribute to a Roth IRA as long as an adult serves as the account’s custodian.

    Pay off High-Interest Debt

    After getting that employer match, focus on tackling any high-interest debt. Those 10% average annual stock market returns pale in comparison to the average interest rate for people who have credit card debt — nearly 20% in early 2023. In a typical year, you’d expect a $100 investment could earn you $10. Put that $100 toward your balance? You’re guaranteed to save $20.

    If you have federal student loans that have been in automatic forbearance since March 2020, you’ll need to make a budget that includes the minimum payment. Though forbearance remains in effect as of this writing, mandatory payments are likely to resume in 2023.

    Take More Risks

    Look, we’re not telling you to throw your money into risky investments like bitcoin or the penny stock your cousin won’t shut up about. But when you start investing, you’ll probably answer some questions to assess your risk tolerance. Take on as much risk as you can mentally handle, which means you’ll invest mostly in stocks with a small percentage in bonds. Don’t worry too much about a stock market crash. Missing out on growth is a bigger concern right now.

    Build Your Emergency Fund

    Building an emergency fund that could cover your expenses for three to six months is a great way to safeguard your retirement savings. That way you won’t need to tap your growing nest egg in a cash crunch. This isn’t money you should have invested, though. Some options include:

    Tame Lifestyle Inflation

    We want you to enjoy those much-deserved raises ahead of you — but keep lifestyle inflation in check. Don’t spend every dollar each time your paycheck gets higher. Commit to investing a certain percentage of each raise and then use the rest as you please.

    Getty Images

    Saving for Retirement in Your 30s

    If you’re just starting to save in your 30s, the picture isn’t too dire. You still have about three decades left until retirement, but it’s essential not to delay any further. Saving may be a challenge now, though, if you’ve added kids and homeownership to the mix.

    Invest in an IRA

    Opening a Roth IRA is a great way to supplement your savings if you’ve only been investing in your 401(k) thus far. A Roth IRA is a solid bet because you’ll get tax-free money in retirement.

    In 2023, you can contribute up to $6,500 if you’re younger than 50. The deadline to contribute isn’t until tax day for any given year, so you can still make contributions for 2022 (the limit is $6.000) until April 18, 2023. If you earn too much to fund a Roth IRA, or you want the tax break now (even though it means paying taxes in retirement), you can contribute to a traditional IRA.

    Your investment options with a 401(k) are limited. But with an IRA, you can invest in whatever stocks, bonds, mutual funds or exchange-traded funds (ETFs) you choose.

    Pro Tip

    If you or your spouse isn’t working but you can afford to save for retirement, consider a spousal IRA. It’s a regular IRA, but the working spouse funds it for the non-earning spouse.

    Avoid Mixing Retirement Money With Other Savings

    You’re allowed to take a 401(k) loan for a home purchase. The Roth IRA rules give you the flexibility to use your investment money for a first-time home purchase or college tuition. You’re also allowed to withdraw your contributions whenever you want. Wait, though. That doesn’t mean you should.

    The obvious drawback is that you’re taking money out of the market before it’s had time to compound. But there’s another downside. It’s hard to figure out if you’re on track for your retirement goals when your Roth IRA is doing double duty as a college savings account or down payment fund.

    Start a 529 Plan While Your Kids Are Young

    Saving for your own future takes higher priority than saving for your kids’ college. But if your retirement funds are in shipshape, opening a 529 plan to save for your children’s education is a smart move. Not only will you keep the money separate from your nest egg, but by planning for their education early, you’ll avoid having to tap your savings for their needs later on.

    Keep Investing When the Stock Market Crashes

    The S&P 500 index, which represents about 80% of the U.S. stock market, finished out 2022 with losses around 19%. The stock market has a major meltdown like the March 2020 COVID-19 crash about once a decade.

    But when a prolonged bear market or crash happens in your 30s, it’s often the first time you have enough invested to see your net worth take a hit. Don’t let panic take over. No cashing out. Commit to dollar-cost averaging and keep investing as usual, even when you’re terrified.

    Two women walk and laugh.
    Getty Images

    Saving for Retirement in Your 40s

    If you’re in your 40s and started saving early, you may have a healthy nest egg by now. But if you’re behind on your retirement goals, now is the time to ramp things up. You still have plenty of time to save, but you’ve missed out on those early years of compounding.

    Continue Taking Enough Risk

    You may feel like you can afford less investment risk in your 40s, but you still realistically have another two decades left until retirement. Your money still has — and needs — plenty of time to grow. Stay invested mostly in stocks, even if it’s more unnerving than ever when you see the stock market tank.

    Put Your Retirement Above Your Kids’ College Fund

    You can only afford to pay for your kids’ college if you’re on track for retirement. Talk to your kids early on about what you can afford, as well their options for avoiding massive student loan debt, including attending a cheaper school, getting financial aid, and working while going to school. Your options for funding your retirement are much more limited.

    Keep Your Mortgage

    Mortgage rates vary from week to week, but they’re expected to stay low for most of 2021. Your potential returns are much higher for investing, so you’re better off putting extra money into your retirement accounts. If you haven’t already done so, consider refinancing your mortgage to get the lowest rate.

    Invest Even More

    Now is the time to invest even more if you can afford to. Keep getting that full employer 401(k) match. Beyond that, try to max out your IRA contributions. If you have extra money to invest on top of that, consider allocating more to your 401(k). Or you could invest in a taxable brokerage account if you want more flexibility on how to invest.

    Meet With a Financial Adviser

    You’re about halfway through your working years when you’re in your 40s. Now is a good time to meet with a financial adviser. If you can’t afford one, a financial counselor is typically less expensive. They’ll focus on fundamentals like budgeting and paying off debt, rather than giving investment advice.

    A woman waves her hands in the air as she overlooks a mountainous view in Alaska.
    Tina Russell/The Penny Hoarder

    Saving for Retirement in Your 50s

    By your 50s, those retirement years that once seemed like they were an eternity away are getting closer. Maybe that’s an exciting prospect — or perhaps it fills you with dread. Whether you want to keep working forever or retirement can’t come soon enough, now is the perfect time to start setting goals for when you want to retire and what you want your retirement to look like.

    Review Your Asset Allocation

    In your 50s, you may want to start shifting more into safe assets, like bonds or CDs. Your money has less time to recover from a stock market crash. Be careful, though. You still want to be invested in stocks so you can earn returns that will keep your money growing. With interest rates likely to stay low through 2023, bonds and CDs probably won’t earn enough to keep pace with inflation.

    Take Advantage of Catch-up Contributions

    If you’re behind on retirement savings, give your funds a boost using catch-up contributions. In 2023, you can contribute:

    • $1,000 extra to a Roth or traditional IRA (or split the money between the two) once you’re 50
    • $7,500 extra to your 401(k) and most other workplace accounts once you’re 50
    • $1,000 extra to a health savings account (HSA) once you’re 55.

    The Secure Act 2.0, which passed in December 2022, will increase catch-up contributions to employer-sponsored accounts workers between ages 60 and 63 beginning in 2025.

    Work More if You’re Behind

    Your window for catching up on retirement savings is getting smaller now. So if you’re behind, consider your options for earning extra money to put into your nest egg. You could take on a side hustle, take on freelance work or work overtime if that’s a possibility to bring in extra cash. Even if you intend to work for another decade or two, many people are forced to retire earlier than they planned. It’s essential that you earn as much as possible while you can.

    Pay off Your Remaining Debt

    Since your 50s is often when you start shifting away from high-growth mode and into safer investments, now is a good time to use extra money to pay off lower-interest debt, including your mortgage. Retirement will be much more relaxing if you can enjoy it debt-free.

    A couple in their 60s walk on the beach.
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    Saving for Retirement in Your 60s

    Hooray, you’ve made it! Hopefully your retirement goals are looking attainable by now after working for decades to get here. But you still have some big decisions to make. Someone in their 60s in 2021 could easily spend another two to three decades in retirement. Your challenge now is to make that hard-earned money last as long as possible.

    Make a Retirement Budget

    Start planning your retirement budget at least a couple years before you actually retire. Financial planners generally recommend replacing about 70% to 80% of your pre-retirement income. Common income sources for seniors include:

    • Social Security benefits. Monthly benefits replace about 40% of pre-retirement income for the average senior.
    • Retirement account withdrawals. Money you take out from your retirement accounts, like your 401(k) and IRA.
    • Defined-benefit pensions. These are increasingly rare in the private sector, but still somewhat common for those retiring from a career in public service.
    • Annuities. Though controversial in the personal finance world, an annuity could make sense if you’re worried about outliving your savings.
    • Other investment income. Some seniors supplement their retirement and Social Security income with earnings from real estate investments or dividend stocks, for example.
    • Part-time work. A part-time job can help you delay dipping into your retirement savings account, giving your money more time to grow.
    • Reverse mortgages: If you’ve paid off your home or have significant equity, a reverse mortgage can provide extra income.

    You can plan on some expenses going away. You won’t be paying payroll taxes or making retirement contributions, for example, and maybe your mortgage will be paid off. But you generally don’t want to plan for any budget cuts that are too drastic.

    Even though some of your expenses will decrease, health care costs eat up a large chunk of senior income, even once you’re eligible for Medicare coverage — and they usually increase much faster than inflation.

    Develop Your Social Security Strategy

    You can take your Social Security benefits as early as 62 or as late as age 70. But the earlier you take benefits, the lower your monthly benefits will be. If your retirement funds are lacking, delaying as long as you can is usually the best solution. Taking your benefit at 70 vs. 62 will result in monthly checks that are about 76% higher. However, if you have significant health problems, taking benefits earlier may pay off.

    Figure Out How Much You Can Afford to Withdraw

    Once you’ve made your retirement budget and estimated how much Social Security you’ll receive, you can estimate how much you’ll be able to safely withdraw from your retirement accounts. A common retirement planning guideline is the 4% rule: You withdraw no more than 4% of your retirement savings in the first year, then adjust the amount for inflation.

    If you have a Roth IRA, you can let that money grow as long as you want and then enjoy it tax-free. But you’ll have to take required minimum distributions, or RMDs, beginning at age 73 (previously age 72) if you have a 401(k) or a traditional IRA. These are mandatory distributions based on your life expectancy.

    The penalties for not taking them are stiff: You’ll owe the IRS 50% of the amount you were supposed to withdraw for tax years 2022 and prior, though the penalty drops to 25% for 2023 and subsequent years.

    Pro Tip

    Beginning in 2024, Roth-designated employer-sponsored accounts will no longer have RMDs.

    Keep Investing While You’re Working

    Avoid taking money out of your retirement accounts while you’re still working. Once you’re over age 59 ½, you won’t pay an early withdrawal penalty, but you want to avoid touching your retirement funds for as long as possible.

    Instead, continue to invest in your retirement plans as long as you’re still earning money. But do so cautiously. Keep money out of the stock market if you’ll need it in the next five years or so, since your money doesn’t have much time to recover from a stock market crash in your 60s.

    A Final Thought: Make Your Retirement About You

    Whether you’re still working or you’re already enjoying your golden years, this part is essential: You need to prioritize you. That means your retirement savings goals need to come before bailing out family members, or paying for college for your children and grandchildren. After all, no one else is going to come to the rescue if you get to retirement with no savings.

    If you’re like most people, you’ll work for decades to get to retirement. The earlier you start planning for it, the more stress-free it will be.

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


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

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  • Best Personal Loans of 2023

    Best Personal Loans of 2023

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    A personal loan is a type of installment loan in which money is borrowed in a lump sum and repaid over time in fixed monthly payments.

    Borrowers commonly use personal loans to consolidate debt, because a single loan can replace multiple monthly payments and potentially give you a lower interest rate than you pay on high-interest debts like credit cards.

    Other than a couple of restrictions, including buying a home or paying for education costs, you can get pretty creative with how you use a personal loan. It could give you a leg up to start a business if you can’t get approved for a dedicated business loan. Plus, a personal loan can give you a lifeline if your financial situation changes unexpectedly or help you shoulder big expenses without the high interest of credit cards.

    Personal loans offered by online lenders and traditional financial institutions share a lot of standard features. They tend to come in amounts between $5,000 to $40,000, with interest rates between 5% and 36%, and repayment periods between two and seven years (though there are outliers for all of these parameters). Most lenders offer a discounted interest rate if you sign up for automatic payments, typically 0.25 or 0.5 percentage points.

    Typically, you need good to excellent credit — a score of at least 670 — but you can find lenders, especially through online platforms, that cater to borrowers with lower scores. A few lenders offer perks, like repayment benefits or a free FICO score, that could make one more attractive for you than another.

    But the biggest selling point will likely be the cost of your loan — check your prequalified rates with lenders (it doesn’t affect your credit score) to find the loan with the best interest rate, monthly payment and repayment period for your situation.

    Personal Loans at a Glance

    Company APR with Autopay Min/Max Loan Amounts Loan Terms
    LightStream 5.99% – 23.99% $5,000 – $100,000 Up to 7 years SEE DETAILS
    Credible Personal Loans 5.40% – 35.99% $600 – $100,000 1 – 7 years SEE DETAILS
    Upstart 6.50% – 35.99% $1,000 – $50,000 3 or 5 years SEE DETAILS
    SoFi 7.99% – 23.43% $5,000 – $100,000 2 – 7 years SEE DETAILS
    PenFed $600 – $50,000 $5,000 – $50,000 1 – 5 years SEE DETAILS
    Upgrade 7.96% – 35.97% $1,000 – $50,000 24 – 84 months SEE DETAILS
    Rocket Loans 8.416% – 29.99% $2,000 – $45,000 36 or 60 months SEE DETAILS
    Happy Money 8.99% – 29.99% $5,000 – $40,000 2 – 5 years SEE DETAILS
    Discover 6.99% – 24.99% $2,500 – $35,000 36, 48, 60, 72 or 84 months SEE DETAILS
    Marcus 8.99% – 24.74% $3,500 – $40,000 36 – 72 months SEE DETAILS
    LendingClub 8.05% – 36.00% $1,000 – $40,000 3 or 5 years SEE DETAILS
    Prosper 6.99% – 35.99% $2,000 – $40,000 3 or 5 years SEE DETAILS
    Avant 9.95% – 35.95% $2,000 – $35,000 24 – 60 months SEE DETAILS
    LendingPoint 7.99% – 35.99% $2,000 – $36,500, 24 – 60 months SEE DETAILS

    LightStream

    Best for Good to Excellent Credit

    Key Features

    • Same-day funding
    • No fees
    • Loans available for low credit scores

    LightStream offers fixed-rate personal loans up to $100,000, with funding as soon as the same day you’re approved. Its Rate Beat Program guarantees it’ll offer you the lowest rate you can find — just submit a request with information about a lower rate offered by a competitor, and it’ll offer you that rate minus 0.10 percentage points.

    LightStream

    APR

    5.99% – 23.99%

    Loan amounts

    $5,000 – $100,000

    Minimum credit score

    600

    Credible

    Best Loan Marketplace

    Key Features

    • Compare rates from top lenders
    • Loans for poor credit available
    • Loan amounts as low as $600

    Use Credible’s search engine to find personal loans for as little as $600. Unlike other marketplaces, Credible only gets paid when you accept a loan offer, so it doesn’t sell your information to lenders to pester you. You’ll see prequalified offers and compare lenders side by side, then click through from your Credible dashboard to a lender’s site to apply.

    Credible

    APR

    5.40% – 35.99%

    Loan amounts

    $600 – $100,000

    Minimum credit score

    640

    Upstart

    Best for Borrowers Without a Traditional Credit History

    Key Features

    • AI-powered lending for partner banks
    • Considers more than your credit history
    • Potential for one-day funding
    Upstart isn’t technically a lender, but it’s not a marketplace, either. You’ll see prequalified rates from partner lenders and apply right through its platform. Upstart’s proprietary AI uses more than the traditional credit score to assess a borrower’s creditworthiness, so you might have a higher chance of approval on the platform if you have no credit score but other positive factors, like education and income.

    Upstart

    APR

    6.50% – 35.99%

    Loan amounts

    $1,000 – $50,000

    Minimum credit score

    300

    SoFi

    Best for Same-Day Funding

    Key Features

    • No fees
    • Unemployment protection
    • Potential for same-day funding

    SoFi is a tech platform-turned bank that offers a range of financial services from the convenience of an app. Its personal loans come with no origination fees, prepayment penalties or other hidden fees. Funding is usually available the same day as approval, and SoFi includes unemployment protection: If you lose your job, SoFi works with you to modify your payments temporarily.

    SoFi

    APR

    7.99% – 23.43%

    Loan amounts

    $5,000 – $100,000

    Minimum credit score

    650

    PenFed

    Best Credit Union for Personal Loans

    Key Features

    • No hidden fees
    • Loan amounts as low as $600
    • Flexible terms

    PenFed Credit Union is the best credit union for personal loans. Terms are flexible (12 to 60 months), and you can get a loan for as low as $600. Don’t sweat the fees (because there aren’t any); you won’t pay an origination fee, and there’s no early payoff penalty. The only downside? You have to be a member of the credit union to apply.

    PenFed

    APR

    7.74% – 17.99%

    Loan amounts

    $600 – $50,000

    Minimum credit score

    650

    Upgrade

    Best for Raising your Credit Score

    Key Features

    • Checking, credit and loans in one platform
    • No prepayment penalties
    • Next day funding

    Upgrade is a financial tech company that offers rewards checking, an innovative-payment credit card, credit monitoring and personal loans. The platform is an all-in-one debt payoff and management solution — its personal loans and credit cards are designed with quick repayment in mind, you get free credit monitoring, and you may be able to qualify for a loan with a fair or poor credit score.

    Upgrade

    APR

    7.96% – 35.97%

    Loan amounts

    $1,000 – $50,000

    Minimum credit score

    560

    Rocket Loans

    Best for Transparent Process

    Key Features

    • Same day funding
    • No prepayment penalties
    • All-online application

    Apply online for a personal loan from Rocket Loans to see prequalified offers in less than a minute. You can complete your application entirely online, including income and identity verification, so no phone calls or snail mail from lenders. Funding could come within a couple of business days — if not the same day. A major pitfall? The 7% origination fee

    Rocket Loans

    APR

    8.416% – 29.99%

    Loan amounts

    $2,000 – $45,000

    Minimum credit score

    640

    Happy Money

    Best for Debt Consolidation

    Key Features

    • Specially designed for credit card payoff
    • Borrow from community-based lenders
    • Origination fee between 0% and 5%

    Happy Money is a financial tech company that works with community based lenders — credit unions and mission-driven institutions — to provide The Payoff Loan, a personal loan designed for credit card debt consolidation. See loan offers and choose among the lowest monthly payment, lowest interest rate or quickest payoff date to align with your financial goals.

    Happy Money

    APR

    8.99% – 29.99%

    Loan amounts

    $5,000 – $40,000

    Minimum credit requirement

    600

    Discover

    Best for Flexible Repayment Options

    Key Features

    • No fees (except late fees)
    • Repayment assistance options
    • Free FICO credit score

    Discover personal loans are straightforward, fee-free loans up to $35,000 with a minimum credit score of 660. Discover offers flexible terms and a 30-day guarantee in case you change your mind. The lack of fees, including origination and prepayment, is a huge selling point for Discover — as is the low potential APR.

    Discover

    APR

    6.99% – 24.99%

    Loan amounts

    $2,500 – $35,000

    Minimum credit score

    660

    Marcus

    Best for On-Time Payment Rewards

    Key Features

    • No fees
    • Skip-a-payment reward for on-time repayment
    • Customize your monthly payment

    Marcus is the personal banking arm of Goldman Sachs, offering individual savings, investing, credit cards and loans. Its personal loans are available to borrowers with good credit for up to $40,000, with no fees — not even late fees. And it rewards you for on-time payment: Make your monthly payment on time for 12 months in a row, and you can defer payment for a month with no additional interest accrued.

    Marcus

    APR

    8.99% – 24.74%

    Loan amounts

    $3,500 – $40,000

    Minimum credit score

    660

    LendingClub

    Best for Joint Loans

    Key Features

    • Borrow up to $40,000
    • Funding within 48 hours
    • No prepayment penalty

    LendingClub is an online marketplace bank offering checking accounts and personal loans for consumers. Take out personal loans up to $40,000 for terms of three to five years — you can even do joint loans. (You might know the platform for peer-to-peer lending, which is how it started, but as of 2020, LendingClub only offers traditional personal loans.)

    LendingClub

    APR

    8.05% – 36.00%

    Loan amounts

    $1,000 – $40,000

    Minimum credit score

    600

    Prosper

    Best for Peer-to-Peer Borrowing

    Key Features

    • Peer-to-peer lending
    • Next-day funding
    • No prepayment penalty

    Prosper is an online peer-to-peer lending company that lets individuals and institutions invest in personal loans to support borrowers and earn returns through debt securities. Prosper handles the loan application, origination and management, so you don’t work directly with funders, but you can rest assured that the interest you pay goes back to real people, not just banks.

    Prosper

    APR

    6.99% – 35.99%

    Loan amounts

    $2,000 – $50,000

    Minimum credit score

    600

    Avant

    Best for Fair Credit Loans

    Key Features

    • Next-day funding
    • Low minimum credit score
    • Easy-to-use app

    Avant offers personal loans up to $35,000 as soon as the next business day after you’re approved. Most Avant borrowers have FICO credit scores between 600 and 700, but Avant sometimes awards loans to borrowers whose score is as low as 580. If you have fair credit, Avant is worth a shot.

    Avant

    APR

    9.95% – 35.95%

    Loan amounts

    $2,000 – $35,000

    Minimum credit score

    580

    LendingPoint

    Best for Fair Credit Borrowers

    Key Features

    • Next-day funding
    • No co-sign loans
    • AI technology that considers more than just cred

    LendingPoint uses proprietary algorithms to assess creditworthiness using factors that go beyond the traditional FICO score. It offers unsecured personal loans as well as e-commerce and point-of-sale financing. With a minimum credit score of 600, this could be a good option for borrowers with fair credit scores, though it doesn’t offer co-signed loans, which can be useful for low-credit borrowers.

    LendingPoint

    APR

    7.99% – 35.99%

    Loan amounts

    $2,000 – $36,500

    Minimum credit score

    600

    Types of Personal Loans

    “Personal loan” is a broad category of lending that you can apply to almost any financial need. Lenders often advertise things like home improvement loans, wedding loans, timeshare loans or adoption loans — but these are all technically just personal loans, structured the same way.

    A few key differences to look out for are:

    • Debt consolidation loans: Many people use personal loans for credit card debt consolidation or refinancing — replacing one or many debts with another. It can simplify  repayment and reduce your interest rate. When you take out a personal loan for this purpose, the lender usually sends the money directly to your other creditors, instead of to you.
    • Secured loan: A secured loan of any kind is one backed by collateral — that’s an asset you put on the line to turn over to the lender in case you can’t repay the loan. For mortgages, the collateral is your home; for auto loans, it’s the vehicle. Secured personal loans are also available, and you could put up anything of value as collateral, like a boat, jewelry, fine art or investment funds.
    • Unsecured loan: Unsecured loans are those without any collateral backing them. This increases the risk for the lender, so you usually have to have excellent credit and income to qualify.

    Personal Loan Costs to Consider

    When you evaluate personal loan offers, you’ll probably focus on the interest rate, because that has a significant impact on the long-term cost of the loan. But there are other costs to consider.

    Before accepting any loan offer or signing the agreement, make sure you know how much you’ll pay (if anything) in these common costs:

    • APR: Annual percentage rate is what’s often referred to as your interest rate and usually the most prominently advertised feature of your loan. Personal loan interest rates tend to fall between 5% and 36%. A higher credit score and shorter repayment period can lower the interest rate, while a lower credit score and longer repayment period can increase it.
    • Origination fee: Many lenders take a bite out of your loan upfront, so you won’t receive 100% of the loan amount. Origination fees are usually around 2% or 3% of your loan amount, and lenders subtract them from the original loan amount you receive.
    • Late fee: Your loan agreement will likely come with a fee for late payments, usually a percentage of the payment due or sometimes a flat fee. Those fees are added to your loan balance when you’re late making a monthly payment.
    • Prepayment penalties: They’re becoming less common, but some lenders still include prepayment fees in loan agreements. If you pay off part or all of the loan early, usually within a determined period after receiving it, the lender could charge you an additional fee. The prepayment fee is usually a percentage of the total loan balance at the time you pay it off.

    The other thing that’ll help you determine whether a loan offer is right for you are the repayment terms. Along with any additional costs, look for the basics, including how long you have to repay and how much your monthly payments will be.

    Who Can Take out a Personal Loan?

    Any individual can apply for a personal loan for just about any purpose.

    Many lenders advertise loans for specific purposes, like vacation, weddings or home improvements — but those are usually marketing details. You can use personal loan funds almost any way you want, except for some uses that are restricted to dedicated types of loans, including buying a home and paying for education.

    Unsecured personal loans tend to be tougher to qualify for than those dedicated loans, because they aren’t attached to any collateral or government backing.

    A few companies look into alternative factors to forecast your ability to repay a loan, but most are looking for traditional creditworthiness, including:

    • Credit score and credit history: Lenders usually want to see a credit score of at least 720 for personal loans, though some “bad credit loans” might be accessible for borrowers with scores as low as 600.
    • Debt-to-income ratio: Your debt-to-income ratio (DTI) is the difference between how much you make each month and how much you owe in mortgage and other debt payments, like credit card debt and existing loans. Lenders typically want to see a DTI no higher than 43%, but the lower the better.
    • Income: Lenders typically require you to prove a regular source of income that shows your likely ability to make monthly payments. You can show this through pay stubs if you’re employed, or a recent tax return if you’re self-employed. If you don’t have either of those (or they don’t accurately reflect your expected income), contact a lender before submitting your application to make sure you can work out an alternative way to prove your income.

    Where to Get a Personal Loan

    You can find personal loans through several types of platforms, including:

    • Banks and credit unions, where you could keep all of your banking, credit cards, investing and insurance under one financial institution.
    • Online lenders, meaning companies that only offer loans, but not other banking or financial services.
    • Marketplaces, like Fiona, AmOne or OppLoans, which aggregate offers from multiple lenders and let you see pre-approved rates with a soft credit check. Some marketplaces also let you handle the entire loan application and origination process through their platform, while others simply connect you with lenders to complete the process on their site or over the phone.

    How to Get a Personal Loan

    Follow these steps to get a personal loan:

    1.Consider your financial options. Is a personal loan the best way to meet your needs? You might have alternatives, like delaying a purchase and saving the money.

    2. Review your finances. Figure out a monthly payment you can comfortably fit into your life for the next few years, and use that as a guide when reviewing loan offers.

    3. Check your credit score. Personal loan lenders generally look for borrowers with good or excellent credit scores — about 700 or higher. Even those that accept borrowers with lower scores use your credit history to determine your repayment terms and interest rate. Know where you stand before applying by checking your credit score.

    4. Compare lenders. You’re off to a good start! Checking reviews like this and comparing loan offers through marketplaces can help you see lenders side by side easily. Check lender requirements and options for loan terms before applying and dinging your credit history.

    5. Get pre-qualified. Either through a marketplace or directly on a lender’s site, you can give a little information to go through a soft credit check (that won’t affect your credit score) and get pre-qualified for a loan. You’ll see an interest rate and repayment terms a lender could offer you based on the credit check, so you can decide whether it’s worth putting in a full application.

    6. Review the loan details. Look over offers carefully to make sure the terms, including the monthly payment, repayment period and any fees, fit with your financial plan.

    7. Complete an application. Choose a loan you want, and fill out an application with the lender. You’ll go through a hard credit check (which shows up on your credit report as a request for credit and could lower your score temporarily), and likely be officially approved for the loan.

    8. Receive the funds. Personal loan funds typically go straight into your bank account (unless you’re using them for debt consolidation), and many online lenders fund loans within the same day or the next day after you’re approved.

    9. Set up a payment plan. Most lenders offer better interest rates if you set up automatic payments, which you can do through the lender’s website if you’re comfortable with it. If you’re paying back other debts at the same time, use a repayment method like the debt snowball or avalanche to determine where to direct your money whenever you’ve got extra to put toward your financial goals.

    Frequently Asked Questions (FAQs) About Personal Loans

    There are a lot of questions about how to acquire personal loans and which ones are the best. We’ve rounded up the answers to the most commonly asked questions.

    Which Bank is Best for Personal Loans?

    The offer you get for a personal loan from any institution depends on your credit history, income and existing debt. Shop online or use a lending marketplace to compare options before applying and dinging your credit report. If you have a low credit score (below 700), look for online lending platforms that use innovative algorithms to assess creditworthiness with factors beyond your credit report, like education and bill payments. If you have a stellar credit and debt payment history, look for lenders that offer rewards like on-time payment bonuses and auto-pay discounts on interest.

    Which Bank Has the Easiest Personal Loan Approval?

    While they’re steadily improving, most traditional banks have lengthier personal loan approval processes than online lenders. With a traditional bank, you might have to connect with a loan officer on the phone, mail in or drop off paper application materials and wait several days for approval. Online lending companies use technology to assess your application quickly and make loan offers almost instantly. Funding typically comes within one business day, and some even offer same-day funding.

    What is the Easiest Loan to be Approved For?

    Unsecured personal loans can be harder to qualify for than other types of loans, because they aren’t backed by collateral, like mortgages and auto loans; or supported by future potential earnings, like student loans. Secured personal loans can be easier to qualify for, even with a low credit score, because you put up collateral, like jewelry, a boat or investment funds, to mitigate the lender’s risk in case you don’t repay. Auto loans tend to be the easiest types of loans to qualify for, even with low income or credit scores, because they’re relatively small and are backed by collateral (a vehicle).

    How Much Will a Bank Lend for a Personal Loan?

    Most personal loan lenders offer loans up to around $40,000, but some offer personal loans as high as $100,000. Banks typically make minimum personal loans of around $5,000, while online lenders often lend as little as $1,000 or less. Repayment terms range between two and seven years, so you can work with a lender to land on a repayment plan that gives you a monthly payment you can accommodate.

    What Is the Minimum Income for a Personal Loan?

    How much income you need to qualify for a loan depends on the amount you want to take out, how much debt you already have and how long you’ll have to repay the loan. Lenders might set their own minimum income to qualify for a personal loan, or they might just want to see that you have regular income every month. Generally what’s more important than a minimum income amount is your debt-to-income ratio, the amount of debt payments you owe each month compared with your monthly income. Lenders want to see this to assess whether you can accommodate another loan payment.

    What is the Monthly Payment on a $10,000 Loan?

    Your monthly payment for a personal loan depends on your repayment period (how many months or years you have to repay the loan) and your interest rate. You should be able to see your estimated monthly payment in a loan offer before you apply, so you can figure out whether it’s a fit for you. A couple of examples: A $10,000 loan with a fixed 7% APY and three-year repayment term would come with a $309 monthly payment. A $10,000 loan with 17% interest and a seven-year term would come with a $204 monthly payment.

    Contributor Timothy Moore has written about personal finance with specialities in banking and insurance since 2012. His work has appeared in publications such as Debt.com, Ladders, WDW Magazine, Glassdoor and The News Wheel. The Penny Hoarder staff contributed to this report.


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    tmoorefreelance@gmail.com (Timothy Moore)

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  • 8 of the Best, Cheapest Meal Delivery Services

    8 of the Best, Cheapest Meal Delivery Services

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    Meal delivery services, or meal kits, have been around for more than a decade but have grown in number in recent years.

    You’ve seen the commercials and likely received the direct mailers to your door. And if you live in an apartment building, you might have almost tripped over the 30-plus-pound boxes in the hallway outside your neighbor’s door (the weight from ice packs and filler packaging add up quickly).

    The direct-to-door business has grown from one or two big-name players and expanded to include many different companies, food options and plans for any budget. The pandemic helped exacerbate the trend when people grew weary of heading out to the supermarket. And there are no signs of slowing down: Meal kits are expected to become a $10.2 billion market in the United States by the year 2024.

    If you’re looking to take a break from trips to the store or grocery delivery, take a chance on a cheap meal kit service.

    What Is a Meal Kit?

    A meal kit is a box or other container that holds items you need to create meals. Depending on the the plan you choose — most offer a set amount of meals for each week for a certain amount of people — you’ll receive meals weekly, unless you choose another delivery option.

    Typically, a meal kit is made up of:

    • Ingredients (vegetables, meat and spices, etc.).
    • A recipe for each meal.

    Meal kits usually come with ice packs and insulation to help keep meals frozen until you can put them in your freezer. (The effect of this wrapping and packaging on the environment has been an increasing topic of conversation.) Depending on the freshness or best-by dates, they might also come with directions on which meals you should make and eat sooner.

    For a regular, set price, you can have meals ready-to-make delivered to your doorstep.

    Meal Kits vs. Prepared Meal Kits

    Before we proceed, it’s important to make a distinction between meal subscription services: Meal kits and prepared meal kits.

    Most companies tend to specialize in one type or the other. At a glance, here’s the difference:

    1. Meal Kit: This kit comes with all of the necessary ingredients you need to make the meal from scratch. You’ll need to do the prep work yourself (chopping veggies, defrosting any meat) and use a stove and/or oven to finish preparing the meals.
    2. Prepared Meal Kit: This kit comes with meals already prepared and nearly ready-to-serve. Think: A fancier TV dinner. Simply unpack the meal, heat it in the microwave or oven, and you’re good to go.

    Community entrepreneurs in large cities have also created hyper-local food subscription delivery (or pickup) services.

    Many companies offer deals, especially for new subscribers. For example, you might get a certain number of meals or deliveries for free before you have to start paying.

    Note: The prices in the chart below are based on two to four meals or recipes per delivery. The price of each meal or recipe typically decreases if you order more at one time.

    8 of the Cheapest Meal Delivery Service at a Glance

    Company Starting Price Shipping Best For Promos
    Blue Apron $7.99 $9.99 Wine and buying products $200 off across six boxes GET DETAILS
    Hello Fresh $9.49 $9.99 Fresh food and promos 22 free meals and free shipping GET DETAILS
    Dinnerly $4.99 $9.99 Budget meals made fast Check website GET DETAILS
    Freshly $9.58 Varies Quality quick options None GET DETAILS
    EveryPlate $5.49 $9.99 Easy recipes on a budget First box for $1.49/meal GET DETAILS
    Home Chef $8.99 Varies Special diets Check website GET DETAILS
    Green Chef $11.99 $9.99 Organic ingredients $4.79/meal and free shipping GET DETAILS
    Purple Carrot $11 Varies Vegans and veggie lovers $20 off GET DETAILS
    Getty Images

    1. Blue Apron: Best Choice for Foodies and Wine Lovers

    Blue Apron

    was founded 10 years ago and is one of the most recognized brands in the meal delivery game. The company went public in 2017 and, as of 2020, had over 350,000 customers. (Fun fact: The name “Blue Apron” pays homage to chefs who wear blue aprons when learning how to cook.)

    Users can choose between two and four recipes per week (each serves two). There are lots of food options, ranging from health-conscious to diabetes-friendly recipes. Blue Apron also offers wine delivery, gift cards and an impressive inventory of kitchen items, from an herb stripper to a handcrafted Japanese utility knife.

    Cost: Prices start at $7.99, plus $9.99 shipping.
    Membership fees? No
    Availability: Contiguous United States
    Meal kit or prepared meal kit? Meal kit
    Vegetarian options? Yes
    Current promotions: New users can get $200 off across their first six boxes.

    Hello Fresh meals are displayed on a kitchen counter.
    Photo courtesy of HelloFresh

    2. HelloFresh: Best for Fresh Food and Good Promotions

    HelloFresh is another OG in the meal-kit industry, founded more than a decade ago. Users can choose between two and six recipes per week and choose two or four people to serve. Unlike Blue Apron, HelloFresh has doubled down on food only. The service offers options ranging from meat and pescatarian to calorie-smart and quick-and-easy meals.

    Cost: Prices start at $9.49, plus $9.99 shipping.
    Membership fees? No.
    Availability: Contiguous United States.
    Meal kit or prepared meal kit? Meal kit.
    Vegetarian options? Yes.
    Current promotions: New users get 22 free meals and free shipping. Healthcare workers, military members and veterans are also eligible for a special promotion.

    Food and vegetables sit outside of a Dinnerly box.
    Photo courtesy of Dinnerly

    3. Dinnerly: Best for Families on a Time Crunch

    Dinnerly is one of the more affordable meal kits on the market. Instead of investing in splashy marketing campaigns, Dinnerly passes on these savings to subscribers. Unlike its competitors, the company also uses digital recipe cards, fewer ingredients per dish and less packaging to increase savings, shorten cooking time and reduce carbon emissions.

    Users can choose between a two-person or family box, and between three and six meals. Dinnerly offers 16 different meals a week, and has options from dairy-free to low carb.

    Cost: Prices start at $4.99, plus $9.99 shipping.
    Membership fees? No
    Availability: Delivers to most of the contiguous United States (you can enter your zip code on the homepage to find out if it’s available in your area).
    Meal kit or prepared meal kit? Meal kit
    Vegetarian options? Yes
    Current promotions: New users can regularly check the website and Dinnerly social media channels for promotions.

    People eat a prepared meal from Freshly.
    Photo courtesy of Freshly

    4. Freshly: Best for Singles Who Want a Ready-Made Meal Option

    Freshly was founded in 2012. This meal service promotes chef-prepared meals you can “heat and eat” in only three minutes. That means no frying pan needed for this service — these are fully prepared, fresh meals. But don’t let that fool you when it comes to variety. Recipes range from white bean turkey chili bowl to honey-peach barbecue chicken. And unlike others on the market, you order one meal per person.

    Users can choose between four and 12 meals each week. There are gluten- and peanut-free options, though the company only has a handful of vegetarian meals at this time. It’s recommended that you eat meals within three to five days. Best-by dates are also printed on the meals so you can plan them accordingly.

    Cost: Prices start at $9.58, plus shipping (varies)
    Membership fees? No
    Availability: Contiguous United States
    Meal kit or prepared meal kit? Prepared meal kit
    Vegetarian options? Limited options
    Current promotions: None.

    5. EveryPlate: Best for Subscribers on a Strict Budget

    EveryPlate has, by far, one of the cheapest price-per-serving subscriptions. Similar to Dinnerly, EveryPlate makes adjustments to packaging and menu options to keep prices affordable for subscribers. Picky eaters will appreciate recipes like gravy-lover’s meatballs, while other palates can go for premium meals like lemon parsley scallops.

    Users can choose a ClassicPlate, VeggiePlate or FamilyPlate meal. Meals serve two or four people, and you can get between three to five meals per week. It’s worth noting that the menu is also more restrictive than its competitors — no dedicated vegetarian, keto, vegan, gluten-free, low-carb or paleo options at this time.

    A box with the EveryPlate logo sits on a backdrop with sweet potatoes, a sandwich and condiments.
    Photo courtesy of EveryPlate

    Cost: Prices start at $5.49, plus $9.99 shipping.
    Membership fees? No
    Availability: Delivers to most of the contiguous United States. Enter your ZIP code on the homepage to find out if it’s available in your area.
    Meal kit or prepared meal kit? Meal kit
    Vegetarian options? Limited
    Current promotions: New users can get their first box for $1.49/meal.

    A prepared meal from Home Chef meal delivery service sits on a plate.
    Photo courtesy of Home Chef

    6. Home Chef: Best for Users With Special Dietary Needs

    Home Chef is one of the highest-rated meal-delivery services today. Founded in 2013, Home Chef meal kits are available via mail delivery and in some brick-and-mortar stores (at various price points) as well.

    There’s Home Chef, which is a traditional meal kit, and Home Chef: Fresh and Easy, which has low- or no-prep meals. Home Chef offers oven- and grill-ready quick dishes, as well as dessert options. (Lemon cake slice? Yes, please.) This service also boasts an extremely wide array of recipes, especially if you have particular dietary needs. Whether you need to avoid nuts, wheat, soy or dairy, there are plenty of meal options for you.

    Meals serve from two to six people, and users can choose between two and six recipes a week.

    Cost: Prices start at $8.99, plus shipping (varies).
    Membership fees? No.
    Availability: Delivers to most of the contiguous United States. Enter your ZIP code on the homepage to find out if it’s available in your area.
    Meal kit or prepared meal kit? Meal kit.
    Vegetarian options? Yes.
    Current promotions: New users can check the website for promotions in their area.

    7. Green Chef: Best for Customers Who Want Organic Ingredients

    If you’re looking for fresh ingredients and nourishing meals you can cook in about 30 minutes, Green Chef could be the meal-plan option for you. This service skews toward healthier recipes, with an emphasis on clean ingredients and sustainable packaging (truly putting the *green* in Green Chef, eh?).

    The company offers a range of food options, from keto and paleo to gluten-free boxes. Compared to its contemporaries, though, there may not be as many meals to choose from each week (a quick glance at one menu shows nine options). However, if you’re someone who gets hung up by analysis paralysis, a tighter menu might be just what you’re looking for.

    Customers can choose plans for between two and six people, and three or four meals per week.

    Cost: Prices start at $11.99, plus $9.99 shipping
    Membership fees? No
    Availability: Most of the continental United States, aside from some parts of Louisiana.
    Meal kit or prepared meal kit? Meal kit
    Vegetarian options? Yes
    Current promotions: New subscribers pay $4.79/meal and get free shipping on their first order.

    A purple carrot box is photographed with prepared vegan meals sprouting from the box.
    Photo courtesy of Purple Carrot

    8. Purple Carrot: Best for Vegan Subscribers and Veggie Lovers

    When it comes to some meal kits, vegan options can feel like an afterthought. Purple Carrot is here to change that.

    PC calls itself “pro-plant,” offering veggie-laden, plant-based meals. Unlike other services, it also offers both meal kits and prepared-meal plans, so you can choose what best fits your lifestyle. Currently, you can only belong to one plan, though — that is, you can’t mix-and-match kits and already-prepared meals in one order. Subscribers can whip up Tuscan-stuffed zucchini or heat up some creamy mac n’ cheese with buffalo-roasted chickpeas. Purple Carrot also has fun merch (so, you can pick out a meal plan and a pair of embroidered carrot socks).

    For the meal kit, you can choose between two and four servings, and three or four meals per week. For the prepared-meals plan, there’s only one serving; however, you can choose between six and 10 dinners a week.

    Cost: Meals start at $11, and shipping costs vary
    Membership fees? No
    Availability: Contiguous United States only, though you’ll also want to use the website chat feature to confirm Purple Carrot serves your location.
    Meal kit or prepared meal kit? Both
    Vegetarian options? Yes
    Current promotions: Get $20 off your first order..

    How Do You Order and Choose Meals?

    You usually need to select meals (or defer or cancel that week’s delivery) by a certain date the week before you’re due to receive your next package. You also have the option to choose which meals you’d like to receive; if you elect not to pick them, options will be chosen for you.

    Whether you’re looking for low carb, gluten-free or other menu options, there’s likely a meal plan and kit for you. Bonus: Some of their offerings taste better than takeout or a dish at your favorite restaurant.

    Why Choose a Meal Kit?

    It’s fun to play chef and make meals you wouldn’t normally make yourself. If you want to make Thai chicken coconut curry, but can’t track down coconut milk in your area market, it’s nice to select that meal from a service that will give you everything you need to make it (in just the right quantity, to boot). Also, if you don’t like it, you aren’t stuck with a full spice or dried herb container that you aren’t likely to use again since you only got enough to make that one dish.

    Whether you want a break from grocery shopping, need help with meal planning or just want to try new, delicious food, meal kits can be an affordable option for you.

    Making Your Own Meals vs. Ordering a Meal Kit

    Meal kits can be an affordable, alternative option. But if you’re faced with sticker shock, remember that you’re paying for the convenience factor.

    If you’d like to make your own meals at home, be savvier about where your funds go and what you buy. And if you find yourself over-purchasing groceries and contributing to the nation’s food waste problem — which accounts for 30 to 40% of the food supply, per the USDA — know that there are ways to be smarter about how you shop.

    Know which items (think: non-perishables) are best to buy in bulk. You can also use online tools and store-specific guides to get the best deals and save on groceries.

    Bottom line: With a plan in place, there are endless ways to save money on groceries and food shopping.

    Frequently Asked Questions (FAQs) About Food Delivery Services

    Here are our answers to some of the most popular questions when it comes to cheap meal kits.

    ​​What is the Cheapest Meal Plan Delivery?

    EveryPlate is one of the overall cheapest meal kit services. With that said, the most affordable meal kit for you might depend on where you live and your dietary preferences. Also, if you’re a new subscriber, you could qualify for big first-time-customer specials.

    Prices fluctuate, so check out different (and new-to-the-market) services regularly.

    What is the Cheapest Healthy Meal Delivery Service?

    Home Chef offers specialty meals at good prices. However, most meal delivery services offer a range of food options. Whether you’re looking for fresh produce or low-calorie eats, there are many options for nutritious meals.

    What is the Cheapest Food Delivery Service in 2023?

    Prices have shifted a bit in the last couple of years to accommodate more users and account for pandemic-caused production issues. Right now, EveryPlate and Dinnerly are two of the cheapest meal delivery services.

    What is the Cheaper Version of HelloFresh?

    HelloFresh offers many promotions and new-customer deals. If you’re looking for a slightly cheaper option, check out Dinnerly or Home Chef. Both offer healthy ingredients and vast menu preferences.

    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.


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  • The Bank of America Fees Customers Will Pay for Having a Low Balance

    The Bank of America Fees Customers Will Pay for Having a Low Balance

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    Almost every one of us has a checking account. And if you don’t have one, get on it — it’s a place to safely store your money and you could be eligible for a new-account bonus, free checks and other perks.

    For many of us, checking is the way we pay our bills and budget for our lives. It’s not where we store an abundance of money, like a savings account. Instead it holds enough to cover regular expenditures, and ideally, a little buffer cash.

    Often, banks with business checking accounts charge users a fee monthly to maintain this service. However, most banks offer general checking for free to everyday customers who use it for personal expenses, with certain stipulations.

    The hope is that — once they have you as a checking account customer — you’ll stick around for other services, such as savings accounts and loans. Perhaps you’ll refer family members and friends to open savings accounts and other type of accounts with this business, as well.

    How Bank of America’s Fees Work

    Here are the results of our survey of BofA fees:

    Bank of America’s Account Fees

    Bank of America used to be one of those institutions that offered a fee-free checking to customers. This one account was available to users without maintenance or ATM fees.

    Then, a couple years ago, some BofA customers who’d previously enjoyed a free eBanking (online banking) account got an unwelcome surprise.

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    Bank of America and its Monthly Maintenance Fee

    For years, BofA offered an eBanking checking account that allowed consumers to keep a free checking account — if they agreed to go paperless and handle most transactions via ATM or online transfer. This was a simple way for people to avoid monthly charges.

    Then, in 2018, the bank changed course.

    Bank of America eliminated its eBanking checking account and moved those customers to what it called a Core Checking Account. Members who didn’t fit certain criteria for this account could be charged $12 a month.

    Avoiding Monthly Maintenance Fees

    Back then, to avoid monthly maintenance fees, customers with a Core Checking Account would need to meet one of two guidelines:

    1. They’d need to have at least one directly deposited $250 or more each month, or
    2. Maintain a balance of at least $1,500.

    In other words, BofA wanted to charge customers money for not keeping a the minimum required with stiff overdraft penalties.

    Students under 24 years old who were enrolled in high school, college or a vocational program were exempt from these new fees. Still, that left many people susceptible to paying this monthly charge.

    How Customers Reacted to Bank of America’s Monthly Maintenance Fees

    To be fair, checking programs are expensive to maintain for banks. And more banks started charging monthly maintenance fees to customers who didn’t maintain a minimum daily balance.

    But not everyone took this news lying down. There was a petition on Change.org asking Bank of America not to end its free checking. After it launched, the petition garnered more than a whopping 380,000 signatures.

    The decision wasn’t popular, to say the least.

    So, what will BofA customers pay to maintain a checking account with the bank in 2023? It depends on a couple factors.

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    3 Types of Bank of America Checking Accounts in 2023

    In the years since 2018, BofA has altered its account offerings. (And there’s no longer a Core Checking account.) Today, the company has three primary checking accounts: Bank of America Advantage SafeBalance Banking®, Bank of America Advantage Plus Banking® and Bank of America Advantage Relationship Banking®.

    Here’s a breakdown of each one:

    Bank of America Advantage SafeBalance Banking®

    Required opening deposit: $25
    Interest-bearing account: No
    Option to add overdraft protection: No
    Overdraft fees: No overdraft or insufficient funds fees
    Monthly maintenance fee: $4.95 or $0

    Bank of America Advantage Plus Banking®

    Required opening deposit: $100
    Interest-bearing account: No
    Option to add overdraft protection: Yes
    Overdraft fees: No overdraft or insufficient funds fees
    Monthly maintenance fee: $12 or $0

    Bank of America Advantage Relationship Banking®

    Required opening deposit: $100
    Interest-bearing account: Yes (The annual percentage yield, or APY, will vary based on the amount in your account. For example, an account with less than $2,500 in it in West Central Florida will generate a 0.01% APY. This may vary based on location, as well.)
    Option to add overdraft protection: Yes
    Overdraft fees: No overdraft or insufficient funds fees
    Monthly maintenance fee: $25 or $0

    BofA also offers a savings account — Bank of America Advantage Savings — though it requires an opening deposit of $100.

    Here’s a table so you can view the different details and fees for BofA checking accounts at a glance.

      Bank of America Advantage SafeBalance Banking Bank of America Advantage Plus Banking Bank of America Advantage Relationship Banking
    Required opening deposit $25 $100 $100
    Interest-bearing account No No Yes (APY varies on your location and amount in the account)
    Option to add overdraft protection No Yes Yes
    Overdraft fees No No No
    Monthly maintenance fee $4.95 (can be waived) $12 (can be waived) $25 (can be waived)

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    How to Avoid Maintenance Fees for Your Checking Account

    Depending on the type of account you choose, here’s how you can avoid the recurring fees:

    Bank of America Advantage SafeBalance Banking

    The fee is waived for each statement cycle in which you’re enrolled in Preferred Rewards.

    What is Bank of America Preferred Rewards?

    It’s BofA’s rewards program, and there are three tiers: Gold, Platinum and Platinum Honors.

    To be a Preferred Rewards client, you must have an active and eligible BoA personal checking account and maintain a three-month combined average of $20,000, $50,000 or $100,000, depending on your tier.

    Bank of America Advantage Plus Banking

    Monthly maintenance fees are waived for each statement cycle in which you are enrolled in Preferred Rewards, have a qualifying direct deposit ($250 or more) or maintain the daily balance requirement ($1,500).

    Bank of America Advantage Relationship Banking

    The fee is waived for each monthly statement cycle in which you are enrolled in Preferred Rewards or maintain the combined minimum balance ($10,000) in eligible linked accounts.

    Bank of America Student Waiver

    Like before, there is a student waiver for bank fees, too. To be eligible, the customer must:

    1. Be enrolled in high school or college, or a university or vocational program, and
    2. Be under 24 years old.

    Note: Students may be asked to show proof of enrollment. They will also no longer be entitled to this waiver once they turn 24, if they leave school or are no longer the account owner.

    So unless you’re an eligible student, you will need to be a Preferred Rewards program member or meet other qualifying balance or deposit requirements to avoid account fees.

    To recap, here’s how you can avoid these fees, by account.

    Bank of America Advantage SafeBalance Banking Bank of America Advantage Plus Banking Bank of America Advantage Relationship Banking
    The $4.95 fee can be waived each statement cycle if you’re enrolled in Preferred Rewards. The fee is also nixed if you qualify for a student waiver. The $12 fee can be waived each statement cycle if you’re enrolled in Preferred Rewards, have a qualifying minimum direct deposit ($250) or maintain the minimum daily balance requirement ($1,500). The fee is also nixed if you qualify for a student waiver. The $25 fee can be waived each statement cycle if you’re enrolled in Preferred Rewards or maintain the combined minimum balance ($10,000) in eligible linked accounts. The fee is also nixed if you qualify for a student waiver.

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    How to Avoid All Bank of America Fees, By Category

    Here’s all the Bank of America fees and all the ways you can get around paying for them.

    Checking Account Fees

    It bears repeating, especially if it means saving you money: You can avoid BofA’s checking account fees in a few ways. Depending on the account, here’s how you can circumvent paying the monthly fee:

    • Bank of America Advantage SafeBalance Banking: Be a Preferred Rewards client or qualify for a student waiver.
    • Bank of America Advantage Plus Banking: Be a Preferred Rewards client, have at least one qualifying deposit of $250, maintain a daily balance of $1,500 or more, or qualify for a student waiver.
    • Bank of America Advantage Relationship Banking: Be a Preferred Rewards client, maintain a combined balance of $10K in eligible linked accounts or qualify for a student waiver.

    Savings Account Fees

    BofA offers a standard savings account to members: Advantage Savings. It has a $8 monthly fee that can be waived if you:

    • Maintain a daily balance of $500 or more,
    • Link your BoA Advantage Savings account and BoA Advantage Relationship Banking accounts,
    • Become a Preferred Rewards member, or
    • Qualify for a student waiver.

    The $8 fee is also waived for new account holders for the first six months.

    Wire Transfer Fees

    Wire transfers offer a secure way to send money within and outside the U.S. Fees will vary depending on a number of factors, like the fees you may incur from other banks.

    You can view a list of some fees here. While you may not be able to avoid a charge completely, you can plan accordingly for them.

    Overdraft Charges

    In May 2022, Bank of America began charging a $10 fee — lowered from $35 — for every overdraft item over $1. The best way to avoid this fee is to stay on top of how much money you have in your account. If your account is eligible, you can also sign up for protection from overdrafts.

    ATM Fees (Out of Network, International, etc.)

    Bank of America charges users $2.50 domestically and $5 internationally for using non-branded ATMs. You might also incur other ATM operator and international fees.

    You can avoid fees entirely by only using Bank of America ATMs. Also, Preferred Rewards program members are entitled to a certain amount (or even unlimited) usage of non-BoA ATMs at no charge.

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    Bank of America vs. Other Banks: Comparing Fees

    To give you an idea of how BofA compares to other big-name institutions, we compared fees. This information applies to checking accounts.

      Bank of America Chase U.S. Bank Wells Fargo
    Required Opening Deposit $25 and up $0 and up $25 $25
    Interest-Bearing Account Yes, for higher-tier accounts Yes, for higher-tier accounts Yes, for higher-tier accounts Yes, for higher-tier accounts
    Option to Add Overdraft Protection Yes, for select accounts Yes, for select accounts Yes Yes, for select accounts
    Overdraft Fees $35 $34 $36 $35
    Monthly Maintenance Fees $4.95 and up (can be waived) $4.95 and up (you can waive maintenance fees for certain accounts) $6.95 and up (can be waived) $5 and up (the $5 fee can be waived for members 24 and younger)

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    How Lower-Tier Bank of America Accounts Compare

    First, if you don’t want to switch banks, dig into your financial situation. For instance, does your employer offer direct salary payment into your account? If so, that’s a qualifying requirement, and a Bank of America Advantage Plus Banking account may work for you. Otherwise, you might want to consider the Bank of America Advantage SafeBalance Banking account.

    Here’s a glance at the pros and cons of each account:

    Bank of America Advantage SafeBalance Banking Checking Account

    Pros:

    • Low opening deposit
    • No overdraft or insufficient funds fees
    • Lowest monthly maintenance fee of all three accounts

    Cons:

    • No checks
    • No option to add overdraft protection
    • You need a lot of funds in your account to become a Preferred Rewards program member and get the monthly service fee waived

    Bank of America Advantage Plus Banking Checking Account

    Pros:

    • No overdraft or insufficient funds fees
    • Option to add overdraft protection
    • Multiple ways to waive the monthly service fee

    Cons:

    • $100 to open an account
    • $12 monthly maintenance fee if you don’t qualify for a waiver

    Again, if you’re an eligible student under 24, you won’t pay monthly maintenance on any account.

    If you’re not exempt from Bank of America’s monthly fees — or looking to avoid monthly service fees altogether — it might be time to consider other options.

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    What to Consider When Choosing a Checking Account

    Whether you have a BofA or an account at another bank, switching banks can be a pain. But it’s worth it if it will save you cash — and headaches.

    Not sure which bank is right for you? We graded 10 checking accounts so you don’t have to do the legwork to find a new place to store your money. You can choose from a variety of online-only and traditional banks. Bonus: Some banks can even help you get your paycheck faster.

    Keeping in line with the theme of this article, you save money with this list of several free checking accounts. Most of these accounts take five minutes or less to sign up and some of these banks offer nice perks like a high-interest or a rewards savings account. Just peep the fine print to make sure you’re aware of any ancillary costs. Other account fees or requirements might include:

    • Paying to replace or personalize your debit card,
    • Non-bank ATM or other banks’ ATM fees
    • A minimum daily balance and
    • Various other account fees

    Whatever you do, don’t stand back and simply let your bank take nearly $60+ of your hard-earned money away from you every year. There are other banks, and far too many better, easier-to-manage options out there.

    Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013. He is a contributor to The Penny Hoarder.


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  • Here Are the 10 Most Affordable Electric Cars for 2023

    Here Are the 10 Most Affordable Electric Cars for 2023

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    Electric vehicles are becoming increasingly popular as gas prices skyrocket. In fact, automakers plan to pivot to largely electric lineups in the coming decade, in response to ongoing climate concerns.

    For more than a decade, brands like Nissan and Chevrolet have offered affordable electric cars like the Nissan Leaf and Chevy Spark EV, but their gas-powered subcompact and compact counterparts were always more affordable.

    While that’s still true today — especially as brands like Tesla market electric vehicles (EVs) like the Tesla Model S starting in the six-figure range — the price gap between gas cars and electric cars has become much narrower. Federal tax credits can even make an electric car cheaper than a similar gas-powered model.

    Still driving a gas-powered car? You can save money on gas if you join one of these six fuel rewards programs.

    At the same time, automakers have made tremendous strides to address range anxiety; most of the electric cars featured below can go at least 200 miles on a single charge.

    But what’s the most affordable electric vehicle, and how do tax credits affect the price? Check out our list of the cheapest electric cars below.

     

    10 Cheapest Electric Cars in 2023

    We’ve rounded up the most affordable EVs in the U.S. based solely on their MSRP (manufacturer’s suggested retail price).

    Some new electric vehicles are eligible for a $7,500 tax credit, but the Inflation Reduction Act of 2022 changed the guidelines. As we approached the end of 2022, the IRS revised guidance (temporarily) because it was simply not ready to roll out some of the new provisions.

    The short version? Some new EVs may qualify for the full electric car tax credit, some may qualify for a partial credit and some may not qualify at all — and this may change later in 2023 (and again in future years). Once you’ve narrowed down your list of affordable EVs, do some research to determine if each vehicle you’re considering qualifies (and if you qualify) for the tax credit.

    Without further ado, here are the 10 most affordable electric cars of 2023:

    1. 2023 Chevrolet Bolt EV

    Starting MSRP: $26,595

    EPA-estimated range: 259 miles

    With changes to the federal EV tax credit law, the Chevrolet Bolt EV may be eligible for a rebate once again. (Chevy had previously been eliminated for consideration because its EV sales had surpassed the now-removed 200,000 sale threshold).

    That means the 2023 Chevrolet Bolt EV, which is the cheapest electric vehicle for 2023, may be even more affordable after tax credits. And it’s cheaper than the outgoing 2022 model by several thousands of dollars.

    Tax credits aside, the Bolt EV is reasonably priced and has great range. The entry-level trim (1LT) that starts at $26,595 promises up to 259 miles of range, wireless smartphone integration and advanced Chevy Safety Assist features. If you spring for the 2023 Bolt EV 2LT (starting at $29,795), you’ll get leather-appointed seats and additional safety tech.

    The 2023 Chevy Bolt EV seats five but suffers from the same crowded feeling in the back. That said, the Bolt is a great find: standard safety tech, wireless phone capability and a 0-to-60 sprint in 6.5 seconds. Plus, Chevy foots the bill for your home charging setup.

    2. 2023 Nissan Leaf

    Starting MSRP: $28,040

    EPA-estimated range: 149 to 226 miles

    The Nissan Leaf was the world’s first mass-market electric vehicle and has been around since 2010. While it hasn’t topped the list of the cheapest electric cars every year, it’s always been among the most affordable electric vehicles. This year, it yields first place to Chevrolet, but it still comes in under $30K before any potential tax credits.

    For the low price of $28,040 (a slight increase over the 2022 model), you’ll get a compact hatchback offering 123 MPGe (miles per gallon equivalent) with a 149-mile range. If you want that max 212-mile range (a decrease from 2022), you’ll need to get the Leaf S Plus with the long-range battery. The Leaf S Plus starts at $36,040 before tax credits.

    While you can fit five passengers in the Leaf, the rear seat is a little tight for adults (but it can be done!). Up front, passengers have access to a wide range of amenities, like Apple CarPlay and Android Auto smartphone integration. And don’t let its status as an economy car fool you; the Leaf comes standard with the Nissan Safety Shield 360, which includes active safety tech like Lane Departure Warning and Automatic Emergency Braking with Pedestrian Detection.

    3. 2023 Chevrolet Bolt EUV

    Starting MSRP: $28,195

    EPA-estimated range: 247 miles

    The Chevrolet Bolt EUV is in its second year and builds upon the work done by the Bolt EV, one of the world’s most popular electric cars. You’ve got more options with the Bolt EUV — four trims instead of two, from the standard LT to the premium Premier Redline with sporty red accents and luxury features.

    What we like about the EUV over the EV is the more spacious cabin — we tall people appreciate every extra inch of legroom an automaker will throw at us. The Chevy EUV is also available with the GM Super Cruise system (the hands-free autonomous driving system that gets us one step closer to the inevitable robot takeover).

    4. 2023 Hyundai Kona Electric

    Starting MSRP: $33,550

    EPA-estimated range: 258 miles

    The 2023 Hyundai Kona may have the fiercest styling of any vehicle on our list — that wheel design is especially attractive, and on base-level trim models, you can go with a two-tone paint job. Inside, wireless connectivity and comfy seating make the Kona a standout.

    And at 258 miles of range on all three trims, the Kona Electric is one of the better options for longer trips; Level 3 quick charging isn’t so quick, however. It’ll take you 47 to 64 minutes, depending on the DC fast charging equipment.

    For those keeping score, the price of the Kona Electric actually went down for 2023 by $450.

    5. 2023 Mini Cooper SE Electric Hardtop 2 Door

    Starting MSRP: $34,225

    EPA-estimated range: 114 miles

    If you’re drawn to the iconic styling of Mini Coopers, you won’t be disappointed by the SE Electric. But it also gets just enough personality of its own that differentiates it from other Coopers (look at those wheels).

    Where you will be disappointed by the new hardtop model is in the range. At 114 miles per charge, the 2023 Mini Cooper SE Electric Hardtop 2 Door has the one of the lowest ranges of any of the 10 most affordable electric cars on our list.

    With all these new electric cars on the market, there’s bound to be some good deals on used ones. Check out our tips for snagging the best used electric cars.

    6. 2023 Volkswagen ID.4

    Starting MSRP: $38,995

    EPA-estimated range: 275 miles

    In 2022, the Volkswagen ID.4 claimed the 10th spot on our most affordable EVs list. This year, a considerable price drop (from more than $41,000) has bumped it up.

    But that’s not all that dropped: Range for the 2023 model is 275 miles — not bad at all, but the 2022 model managed 280. Even so, with fast charging, you can get 220 miles of range in roughly 30 minutes.

    Last year, waiting lists abounded for new cars, especially electric vehicles. And while many EVs on this list took a while to get, the Volkswagen ID.4 was a standout, at times commanding more than four-month waits from order to delivery.

    7. 2023 Kia Niro EV

    Starting MSRP: $39,450

    EPA-estimated range: 253 miles

    Sleek crossovers are a dime a dozen, but add the electrification of the Kia Niro EV and its impressive range of 253 miles, and you’ve got something truly special. For 2023, its range climbed 14 miles per charge, yet its price dropped by roughly $500.

    Despite its single electric motor, the Niro EV is no slouch, cranking out 201 horsepower and 188 lb-ft of torque and launching from 0 to 60 in 7.1 seconds. Plus, the electrified crossover offers standard driver-assist safety tech, a premium sound system, and DC fast charging that adds more than 200 miles of range in just 45 minutes.

    8. 2023 Hyundai IONIQ 5

    Starting MSRP: $41,450

    EPA-estimated range: 220 to 303 miles

    A new entry on our list this year, the 2023 Hyundai IONIQ 5 is an EV to watch. MotorTrend named it the 2023 SUV of the Year, and its premium trim level earns up to 303 miles of driving range — but costs $52,600.

    For the $41,450 price point, you’ll get the base IONIQ 5 model, which still offers an impressive 220 miles of range. The base model sits on sporty 19-inch alloy wheels and offers ultra-fast charging.

    On the other end of the trim spectrum are features like the Blind-Spot View Monitor, vision roof, and Premium Head-Up Display with Augmented Reality.

    9. 2023 Toyota bZ4X

    Starting MSRP: $42,000
    EPA-estimated range: 242 to 252 miles

    Another new entrant on our list of the 10 cheapest EVs this year is the 2023 Toyota bZ4X — as uniquely named as it is styled. But this electric SUV offers more than funky styling.

    For starters, the sporty engine promises 201 horsepower and 196 lb-ft of torque. If you opt for the available all-wheel drive, those numbers jump to 214 and 248, respectively.

    Toyota has also outfitted its bZ4X with a plethora of safety technologies (under the Toyota Safety Sense 3.0 umbrella), including the Pre-Collision System with Pedestrian Detection, Full-Speed Range Dynamic Radar Cruise Control, and Lane Departure Alert with Steering Assist.

    10. 2023 Subaru Solterra

    Starting MSRP: $44,995

    EPA-estimated range: 111 to 114 miles

    Subaru has entered the world of full electrification with its 2023 Solterra. Despite this being its first fully electric model, Subaru has already joined the ranks of the most affordable EVs — even with its legendary symmetrical all-wheel drive system.

    That doesn’t mean the Solterra is cheap. You’ll still have to spend, at a minimum, $44,995, though the top trim (Touring) starts at $51,995.

    While there’s a lot to like about this new EV, Subaru has a long way to go in perfecting its electrified lineup. The 111-mile range is the lowest on our list, and its potential 114-mile range (for the base trim) only ties with Mini Cooper, which has the second-lowest range.

    And it’s roughly just a third of the range you can get from the (more affordable) Hyundai IONIQ 5.

    A Note on the Most Affordable EVs of 2023

    Our list of the 10 cheapest electric cars for 2023 only includes the 2023 model year. In the first half of 2023, you may be able to find cheaper EVs on dealer lots by looking for remaining 2022 inventory.

    Finally, note that some models on our list have limited availability, meaning you may only be able to purchase them in select states.

    Getty Images

    How Electric Car Tax Credits Work

    Back in 2010, the federal government introduced a program awarding customers $7,500 in tax credits for purchasing electric vehicles. The goal was to incentivize buyers — whose major hesitations were price and range — to give EVs a shot.

    So if a new electric vehicle cost $50,000 and came with a $7,500 tax credit, EV buyers could think of it as a $42,500 purchase.

    Of course, customers had to pony up (or finance) the whole $50K when making the purchase, but when filing taxes, drivers could add a one-time tax credit to their return.

    Previous federal tax credit legislation limited automakers to 200,000 EVs before their tax credits went away. The Inflation Reduction Act eliminated that threshold — but added a lot more (confusing) eligibility requirements, some of which were implemented at the start of 2023.

    To be eligible, you’ll need to fall below certain adjusted gross income thresholds (based on your filing status). Vehicles have even more hoops to jump through to qualify, including having critical battery materials sourced in specific locations (i.e., the U.S. or countries with which we have free trade agreements).

    The IRS was not able to implement all the revisions to the tax credit on Jan. 1, 2023, as originally anticipated, so you’ll need to keep up with tax credit updates as you plan to purchase a new electric vehicle.

    Military Discounts on Electric Cars

    Many automakers offer military discounts on their entire lineup, including EVs, which makes it easier for active duty members of the military, veterans and their immediate family to find affordable fully electric vehicles.

    Though the programs vary, they typically entail a $500 rebate or bonus cash.

    If you’re a member of the military exploring electric mobility, check out one of these automotive military discount programs:

    How Much Does It Cost to Own an Electric Car?

    New electric vehicles are about $10,000 more than gas cars if you just look at sticker price. But that’s comparing apples to oranges. For a better comparison, factor in the full cost of ownership, from maintenance and insurance costs to federal tax rebates

    When calculating how much you’ll spend on — and how much you’ll save with — an electric car, include these considerations:

    Federal Tax Credits

    Some EVs are eligible for up to $7,500 in tax credits, though new restrictions imposed as part of the Inflation Reduction Act may actually make it more challenging for EVs to qualify.

    Maintenance Costs

    EVs are famously less expensive to maintain because they don’t require oil changes or air filter replacements. In a given year, you could save hundreds or thousands on routine car maintenance.

    That said, when electric cars need to be repaired (or the battery needs to be replaced), the work is considerably more expensive. Battery replacements can cost several thousand dollars, even more than $20K. That said, most new EVs come with an extended battery warranty that may cover your first replacement, depending on the timing.

    Insurance Costs

    Because electric cars are more expensive to repair, car insurance premiums tend to be more expensive. According to ValuePenguin, EV insurance policies typically cost 25% more.

    Charging Costs

    Gas cars require, well, gas — and it isn’t cheap. Electric cars, on the other hand, are powered by, well, an electric motor. And recharging that electric motor at home is much more affordable than buying a tank of gas. Sure, your monthly utility bill will go up, but the cost is negligible compared to what drivers are spending each month on fuel.

    You should, however, factor in the installation of a charging station at your home when considering a new or used EV purchase. Depending on your setup, expect to spend $1,000 to $2,000 on your at-home charging station — but some automakers (like Chevy) will pay the cost for you.

    Contributor Timothy Moore is a writer and editor in Cincinnati, Ohio. He focuses on banks, loans and insurance for The Penny Hoarder. His work has been featured INSIDER, Sound Dollar, Forbes, HomeAdvisor, WDW Magazine, Chime and SoFi.


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    tmoorefreelance@gmail.com (Timothy Moore)

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  • Your Car Insurance Is Going Up — Again. Here Are 12 Ways to Lower Your Bill

    Your Car Insurance Is Going Up — Again. Here Are 12 Ways to Lower Your Bill

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    Consider this a friendly heads-up: Your car insurance bill is about to go up.

    Well, that’s not fair, you’re thinking. What can I do about it?

    We’ve got a dozen ideas for what you can do about it.

    Rising Car Insurance Prices

    We just saw two separate reports forecasting that 2023 will bring a noticeable jump in car insurance prices:

    • Rates are expected to increase by 8.4% across the U.S. this year — the biggest jump in six years — according to a study from financial data website ValuePenguin. It puts the average cost of full coverage car insurance at $1,780 per year.
    • Meanwhile, the virtual insurance agency Insurify is predicting that rates will rise by 7% in 2023. It puts the average cost of car insurance at $1,777.

    Why? A number of reasons, namely inflation and a nationwide increase in fatal auto accidents.

    12 Simple Ways to Lower Your Car Insurance Bill

    I recently had the “pleasure” of signing up for a new car insurance policy. While I shopped around for a policy that didn’t break my budget — but still offered insurance coverage that thoroughly protected my car, me and other motorists — I researched some tips to help save money.

    And no, I’m not going to suggest anything that requires a drastic life change. Sure, buying a new type of car with high safety ratings, moving to Maine, maintaining a clean driving record or never driving again will all help. But that’s not realistic for most of us.

    Here you’ll find the simplest, most practical ways to lower your auto insurance premiums:

    1. Shop Around for the Best Rates

    Comparing rates sounds like a given, but here’s the thing: Too many people stick with the same auto insurance company and same insurance agent because that’s easy. There’s something to be said for brand loyalty, but it’s also important to shop.

    Why? Car insurance companies use different algorithms to determine costs. Additionally, many offer first-year deals to new customers.

    The easiest way to compare rates is to use an online car insurance search engine. There are a  number of these, like EverQuote, where you can see all your options at once.

    EverQuote is the largest online insurance marketplace in the U.S., so you’ll get options from more than 175 carriers handed right to you.

    Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you recommendations for car insurance. In just a few minutes, you could save up to $610 a year.

    2. Continue to Shop for a Lower Rate Every 6 Months

    Comparing rates once won’t cut it. They can change month to month — even day to day.

    There are a number of fluctuating personal factors that can affect your insurance rates, including your age, location, marital status and credit score. But consider external factors, too, like natural disasters, crime rates and the economy.

    Pro Tip

    Experts encourage consumers to compare rates at least once a year — ideally every six months. Set a reminder on your calendar.

    3. Increase Your Deductible

    Car insurance deductibles are typically $500 or $1,000 — you choose. This is simply the amount you’ll have to cover out of pocket before your insurance kicks in and covers the rest.

    Now, you’re thinking the lower deductible is best, right? In some cases, yes, because if you need to file an insurance claim, you’d rather fork over $500 than $1,000. But opting for a higher deductible can actually save you money on your insurance premium, which could save you money over time.

    You’ll have to consider what happens if you get into an accident and have to file a claim. Can you cover that $1,000 deductible? Do some math, and make sure the money you’re saving on your premium is worth the higher deductible.

    And drive safely!

    4. Pay Your Policy Online, in Full and Early

    The online insurance company The Zebra looked at how much money you can save by adjusting your payment plan. Here’s what it found:

    • Save 1.5% with auto-pay.
    • Save 4.7% by paying in full.
    • Save 3.1% with a seven-day advanced payment.
    • Save 3.8% with a 10-day advanced payment.

    And if you pay online, in full and early, you could lower your rate by 10%. It might not sound like a ton of money, but if your premium is $1,500, this simple move could result in $150 in savings each year.

    5. Maintain Good Credit

    Did you know your credit score can have a hefty impact on your car insurance premiums? Drivers with poor credit tend to pay more than twice as much as those with exceptional credit, according to The Zebra.

    If your credit score is veering toward the “poor” end of the spectrum, there are some simple steps you can take to increase it. We recommend signing up for Credit Sesame, a free credit monitoring service that breaks down exactly what’s on your credit report in layman’s terms, how it affects your score and how to address it.

    James Cooper, a motivational speaker, raised his credit score 277 points in six months using Credit Sesame. Cooper’s favorite part about Credit Sesame is its personalization. It suggested concrete steps, based on his situation, to better manage his credit score.

    Pro Tip

    Some states have outlawed the use of credit in determining car insurance costs. These include California, Hawaii and Massachusetts.

    Getty Images

    6. Bundle Your Insurance Policies

    You’re probably paying for additional insurance policies, right? Like homeowners insurance or renters insurance? Once you find a company you like and trust, consider bundling your policies to save some money.

    The Zebra found that bundling policies could save you up to 10%.

    7. Take a Defensive Driving Course

    OK, so maybe you recently got a speeding ticket. Or you didn’t see that stop sign and received a moving violation. Whatever the case, taking a defensive driving course can be a great way to wipe the points from your driving record and help offset an increase in insurance costs.

    And guess what? You don’t have to sit through a weekend of classes. There’s this thing called the internet, and you can take online defensive driving courses through AARP, the National Safety Council or your state’s DMV. The cost of the course will vary by state, but you shouldn’t pay more than about $40.

    Even if you’re a safe driver with a good driving record, you can still take the course for an insurance discount — just be sure to check with your insurance agent to make sure the discount applies (and that it’s worth the cost of the course).

    8. Brag About Your Community Involvement

    When signing up for car insurance, ask your agent if you can tap into discounts for organizational involvement. For example, when I signed up for my new insurance policy, the company asked if I was involved in a sorority or fraternity, or an alumni organization.

    You can also get discounts if you’re involved in an educational, business or military organization.

    9. Know Your State’s Minimum Requirements

    Each state requires different liability coverage amounts, so study up on your state’s minimum requirements.

    For example, in Maryland, motorists are required to have insurance that covers at least $30,000 in bodily injury per person, $60,000 in bodily injury per accident and $15,000 in property damage. (This is often referred to as 30/60/15.)

    The minimum coverage is the cheapest, but you’ll likely want more.

    A good rule of thumb? Secure coverage that equals the total value of your assets (think: car, home, investments, savings), suggests the Wall Street Journal. Why? If your insurance doesn’t adequately cover an accident, your assets could be seized to help cover car repairs and medical costs.

    To find out your state’s required minimums, visit your DMV online.

    10. Understand Collision and Comprehensive Coverage

    In addition to the state minimums, you’ll also need to consider adding collision and comprehensive coverage to your auto insurance policy.

    Comprehensive insurance will cover any non-accident related damage. Think: hail, theft, flooding, vandalism, fire, falling objects, animals — anything that doesn’t involve another car. Some states call this “other than collision” coverage.

    Then there’s collision coverage, which pays for damage done to your car. If you own an older car that’s not worth a lot, collision coverage might not be worth the increase in your insurance bill.

    Both of these add-ons are optional, but they could benefit you, so consider your circumstances carefully.

    11. Ask About Additional Discounts

    We’ve covered a couple of discounts, but it never hurts to ask your auto insurer about any additional discounts you might qualify for. Some of the most common ones include:

    • Senior
    • Good student
    • Low-income
    • Multi-car (include more than one car on your policy)
    • Safe driver
    • New car
    • Anti-lock brakes
    • Airbag (usually for older cars made before 1990)
    • Anti-theft devices
    • Paperless (view your bill online)

    Honestly, there are too many to list, so it never hurts to inquire. Chances are, your agent will be able to dig up something to help you out.

    12. Use Your Negotiation Skills

    When in doubt, hop on the phone. Yup, for this final tip we’re getting back to the basics. It’s time to negotiate!

    You can negotiate just about any of your monthly bills, including your car insurance. Contact your agent or a company representative and let them know you need to find additional ways to save money… or else.

    (Just kidding. Don’t say that last part.)

    Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder. Carson Kohler is a former staff writer at The Penny Hoarder.


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    mike@thepennyhoarder.com (Mike Brassfield)

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  • The 5 Best Mystery Shopper Side Gigs for Retail Sleuths

    The 5 Best Mystery Shopper Side Gigs for Retail Sleuths

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    Want to become a mystery shopper? If so, we’ve found the five best mystery shopper companies to work for.

    Mystery shoppers go by a couple different names – evaluators, secret shoppers — but, regardless of the name, the job’s the same: mystery shoppers document their experiences to help businesses who deal with the public a lot.

    Workers can score everything from free food to extra money when they work for a mystery shopping company.

    Mystery shopping jobs are pretty plentiful, too. The mystery shopping industry has been around since the 1940s and is a nearly $2-billion-dollar-a-year industry.

    Ready to learn how to get paid to shop? This post includes information about the best mystery shopping firms around (and what makes a reputable company), average pay, how to avoid mystery shopping scams and more.

    What Is Mystery Shopping?

    Mystery shopping is a job where a company pays you to pose like a regular customer. You’ll provide valuable feedback to the company — from how clean the store was to how the employees interacted with you. In exchange for your feedback, they pay you a fee, and in most cases, you’ll be asked to buy something and then be reimbursed up to a set amount. You will know that amount before you buy.

    Many mystery shopping trips entail visits to retail stores, food markets or phone shops. However, for some gigs, you might visit local restaurants (free food!) or even theme parks. There are also phone mystery shopping companies where you interact with call centers and gauge the setup.

    Typically, you’ll write up a report on your experience from the customer’s point of view and submit it to the client by a deadline. From there, you’ll get paid.

    How Do You Get Started as a Mystery Shopper?

    You can look up mystery shopping gigs on dedicated company websites (we’ll get to that soon) or via a job board, like Indeed.com.

    After you apply and your application is approved, you simply log in to the company’s website and select the jobs you want to do. These firms will provide you with all the instructions, and after you’ve completed the shop, you’ll need to enter your feedback into their websites. Some pay via direct deposit, but most will mail you a check at the end of the month.

    It varies by company, but you typically need to be 18 or older to be hired by a mystery shopping company. For assignments around liquor or alcohol, you’ll need to be at least 21 years old. Some gigs also have ranges. For example, a company might request someone between the ages of 18 and 30 so they can appear to be a college student. Some mystery shopping jobs also require you to have reliable transportation.

    Qualities of a Good Mystery Shopper

    To be a successful mystery shopper, you’ll need to:

    • Read thoroughly. Make sure you read the job description completely and understand the requirements.
    • Be detail-oriented. Watch and listen closely when mystery shopping plus take notes and photos. Successful secret shoppers are meticulous with their data.
    • Stay organized. Hold on to any receipts, business cards and other items you need to submit to get reimbursed and paid for the gig. Adhere to deadlines, too (put a reminder on your calendar!).

    Mystery shopping can be a great way to earn pocket cash, but you’ll want to treat this gig like any other job. Especially since not following the rules means you won’t get paid.

    How Much Money Can You Get Paid for a Mystery Shopping Job?

    It varies based on the company and assignment. Across the U.S., mystery shoppers make approximately $970 a week. Gigs run the gamut, from $12 and a free meal to $100 as a flat rate and beyond.

    It’s important to note that, as a mystery shopper, you’ll be an independent contractor. That means you’re responsible for paying your own taxes. You can keep tabs on deductions (like paying for gas to get to a gig) to help with your tax burden at the end of the year. Many companies require shoppers to sign an independent contractor agreement (versus signing them on as a W2 worker), so keep that in mind if you’re looking for a full-time situation that offers health insurance and other benefits.

    On the plus side — since you’re not an employee — you should be able to mystery-shop for multiple companies at one time.

    How Do You Get Paid?

    Similarly, it depends on the company hiring for the assignment — each one has its own rules surrounding payment, from how it’s issued to how often you’ll see your money.

    Many mystery shopping companies pay via PayPal, though some do direct debit and physical checks, too. Some offer gift cards in lieu of cash payment, as well.

    5 of the Best Mystery Shopping Companies

    • Sinclair Customer Metrics
    • Market Force Information
    • IntelliShop
    • Elite CXS
    • Mystery Shopping Service

    Here are some of the companies where you can find mystery shopper jobs. Also, all of them are free to join:

    1. Sinclair Customer Metrics

    Sinclair Customer Metrics has been in the mystery shopping game since 1987. It specializes in the banking, retail, grocery store, (quick-service) restaurant and convenience store spaces. And on top of in-person gigs, Sinclair offers video mystery shopping to clients, too, complete with a hidden camera.

    People looking for a mystery shopping assignment can sign up here.

    Better Business Bureau rating: A+.

    How payment is distributed: Check.

    When payment is sent: You’ll be paid once a month, the last week of the following month after your last completed assignment.

    What you need to get paid: Submit completed assignments on time and adhere to all specifications.

    2. Market Force Information

    Market Force Information works with clients in a variety of industries, from health and wellness and movie studios to specialty retail and alcohol and tobacco. The firm has offices in the U.S., Canada and the United Kingdom, and provides gigs in thousands of locations. Market Force also has an app, Eyes:On, which allows mystery shoppers to complete assignments on the go.

    People looking for mystery shopping gigs can sign up here.

    Better Business Bureau rating: A+.

    How payment is distributed: Direct deposit.

    When payment is sent: Monthly, on the 15th.

    What you need to get paid: Submit completed assignments on time and adhere to all specifications.

    3. IntelliShop

    IntelliShop is a customer experience research and improvement firm. The firm’s specialties are in the customer experience, online reputation management, and loss prevention and compliance sectors. IntelliShop provides coverage in more than 18K cities in the U.S. and Canada and 180 countries.

    Prospective shoppers seeking a mystery shopping assignment can sign up here.

    Better Business Bureau rating: A+.

    How payment is distributed: PayPal.

    When payment is sent: Approximately 30 days after the last day of the month in which your mystery shopping trips were completed.

    What you need to get paid: All shop documentation (a business card, receipt, etc. — anything required for a particular task) must be submitted to receive payment for the shopper challenge.

    4.Elite CXS

    Elite CXS is a veteran-owned, award-winning mystery-shopping operation based in Hudson, Florida. The company has partnered with major brands, such as Porsche, T-Mobile and Gold’s Gym. Jobs vary by region across the U.S, but Elite CXS places evaluators in video, phone and in-person shopping gigs in a variety of industries.

    Interested mystery shoppers can sign up here.

    Better Business Bureau rating: A+.

    How payment is distributed: PayPal.

    When payment is sent: Once a month.

    What you need to get paid: Submit completed assignments on time.

    5. Mystery Shopping Service

    Mystery Shopping Service has been around for more than 20 years. The company serves the real estate, senior living and healthcare, retail, and hospitality industries across the U.S. Mystery shoppers could be tasked with calling a business and reporting on the conversation or touring an apartment building under the guise of a potential renter.

    Prospective mystery shoppers can get more information on available gigs and apply here.

    Better Business Bureau rating: A+.

    How payment is distributed: PayPal or check.

    When payment is sent: End of the month.

    What you need to get paid: Submit completed assignments on time as outlined in the assignment instructions.

    What’s Life Like for a Secret Shopper?

    You can become a mystery shopper in a number of ways. In fact, our CEO started mystery shopping as a teenager. (He’s also completed more than 5,000 mystery shops to date!)

    He got his start mystery shopping at local grocery stores, an Ikea, fast-food establishments, restaurants and liquor stores. On another assignment, he was asked to pretend he was shopping for a car — he took a test drive and everything — and earned a cool $60 for each dealership he went to that day.

    He’s since hung up his mystery-shopping boots. But back in the day, he was usually paid between $8 and $25 per secret-shopping trip. There were months where he earned more than $5,000, but most months, he earned $400-$500 in extra money for mystery shopping.

    Your mileage may vary, of course. But it can be a semi-lucrative and fun gig for the right person.

    Warning: Be Careful of Mystery Shopper Scams

    Unfortunately, if you’ve looked into mystery shopping before, you know there are a lot of scammers trying to take advantage of this industry’s growing popularity.

    A few rules of thumb:

    • Never pay to join a mystery shopping company. The real ones never ask for a payment from you.
    • Never pay money to a company to see their list of jobs. Legitimate mystery shopping companies are always short of shoppers, so they never ask for you to pay to see a list of their jobs.
    • Also, legit mystery shopping companies shouldn’t force you to take a certain number of jobs.

    Still confused about an opportunity? The Mystery Shopping Providers Association (MSPA) is a trade organization that offers resources for secret shopping companies and guidelines for individuals who are interested in this type of work. Also, check out online reviews for any company before you work for them.

    There are a ton of real mystery shopping companies, so do your due diligence to stay away from the scams.

    Frequently Asked Questions (FAQs) About Mystery Shopping

    Here are some FAQs when it comes to mystery shopping companies and gigs.

    Which Mystery Shopping Company Pays the Best?

    BestMark is one of the largest mystery shopping companies, so you’ll have a wide variety of jobs to pick through and choose based on pay.

    Overall, though, it’s worthwhile to sign up for a couple different companies and see what’s out there. Also, consider that the types of gigs you go after (visiting three grocery stores in one day vs. answering a 10-minute survey, for example) will have an effect on your pay. If you choose more involved tasks, the pay tends to go up with the workload.

    Which Mystery Shopping Companies Are Legitimate?

    The five companies listed in this article are all legitimate mystery shopping companies. However, it’s worth looking at recent online reviews so you can learn from other evaluators’ experiences. (Also, note that BBB ratings do not necessarily mean that a business is BBB accredited.)

    Always do some research before taking a gig and revisit the section on scams so you know what to avoid.

    How Much do Professional Mystery Shoppers Make?

    Mystery shoppers can make anywhere from a few bucks to several hundred a week. Depending on your availability and the job pay, you have some control over how much you can make. Remember, though, that it will typically take a couple of weeks (minimum) before you will receive the pay for your work.

    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.


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    kathleen@thepennyhoarder.com (Kathleen Garvin)

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  • Scared of Trading Bitcoin? Cash App Isn’t

    Scared of Trading Bitcoin? Cash App Isn’t

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    The way people bank, invest and manage money has changed rapidly over the past few years and Cash App is one of few platforms that has been nimble enough to adapt to the digital financial world and continue to serve customers’ needs.

    The app by Block, Inc. (formerly Square, Inc.) — previously called Square Cash — started as a money transfer app. The app had a particular appeal to communities who are traditionally unbanked or underbanked because of its ease of use, lack of fees and almost exclusively mobile design.

    Cash App has continued to expand since its inception in 2013 to include more ways to uniquely serve this customer base and broaden the app’s appeal. Now the app supports money transfers, banking, stock and ETF investing, Bitcoin trading and tax filing.

    In our Cash App review, we’ll cover everything you need to know to figure out whether Cash App is the right place for your money — including its banking features, fees, perks and customer service.

    Cash App Review: Accounts

    Account Minimum Deposit Best for Ease of Use
    Cash App Account $0 Money transfers Very easy GET DETAILS
    Cash Card $0 Direct deposit Very easy GET DETAILS

    Cash App Account

    Best for Peer-to-Peer Payments

    Key Features

    • Send and receive money with friends
    • Send as cash, stock or Bitcoin
    • Pay with your Cash App balance

    Use your basic Cash App account to send and receive money with friends, family and merchants who use Cash App. Send payments using a recipient’s email, phone number, $Cashtag or QR code, and see payments you’ve received in an activity feed with notes from the sender. You can use your balance to send payments as cash (USD), stock or Bitcoin (BTC).

    Minimum deposit

    $0

    Send payments

    In cash, stock or bitcoin

    Pay merchants

    Directly

    Prime perk

    Easy-to-use QR code

    More Information About the Cash App Account

    More Information About the Cash App Account

    Everyone who signs up for Cash App starts with a basic Cash App account, which you use to send and receive money. This peer-to-peer payment function is Cash App’s bread and butter, and is the app’s original purpose and reason most people download the app.

    When you create an account, you’ll choose a username called a $Cashtag. Friends can use your $Cashtag, email address or phone number to send you money through the app, or they scan a unique QR code that links to your Cash App account.

    Cash App is available for users in the U.S. and UK, and you can only send and receive payments with users in these countries. The app supports USD and GBP currencies.

    Other Features of the Cash App Account

    The following features can help you decide if the Cash App Account is right for you.

    Cash App Payments

    As soon as you sign up for a Cash App account you can receive money. You can send money as long as you have a balance in the app — you are not required to connect a bank account to use Cash App.

    Before you can transfer money to friends, you must enter your name, birthdate and last four digits of your Social Security number to verify your identity, which is a common practice with any financial institution.

    To “cash out” (i.e. transfer your Cash App money to a bank account) or send more money than you have in your Cash App in-app balance, you can connect a bank account using your debit card information or your bank’s online login details. Cash outs instantly send money to the bank account you connected to Cash App.

    Send Cash, Stocks or Bitcoin

    With Cash App, you can send funds as cash, stock, or Bitcoin. You do not need to own stock, Bitcoin, or have an investing account for either to send them as funds through Cash App app. Instead, Cash App pulls the USD (or GBP if you’re in the UK) from your account balance and gives the recipient the option to use it to buy the stock or Bitcoin you “send.”

    Others can send you money as stock or Bitcoin, too, and you have the option to accept or decline it.

    To accept stock, you have to have or open a brokerage account in the app. To accept Bitcoin, you have to verify your identity in the app, but you don’t need a separate crypto wallet. If you decline stock or Bitcoin payments, you will get the sent money as cash instead.

    Cash App Pay

    You can use your Cash App account directly to pay merchants who use Square for payments — for example, at markets, small businesses and online stores. This feature is called Cash App Pay. To do so, scan the vendor’s QR code with your phone and follow the prompts to complete the payment from your balance. You can also use Cash App Pay at participating vendors’ websites. Select “Cash App Pay” at checkout, either scan the Cash App QR code if on desktop (or if you are on mobile, you will automatically be redirected to the app itself), and follow the prompts to complete your online transaction.

    A Cash App account on its own doesn’t work with other online or mobile payment systems; you need a Cash Card to do that.

    Banking With Cash Card

    Best for Basic Checking Account Needs

    Key Features

    • No minimums and no service fees
    • Early payday with paycheck direct deposit
    • Pay with your Cash App balance anywhere

    Signing up for a Cash Card turns your Cash App account into a full-on bank account. You can receive direct deposits, get paid up to two days early, pay with your Cash App balance anywhere Visa is accepted and get unlimited free ATM withdrawals when you have at least $300 deposited each month. Plus, you can personalize your card with a doodle right in the app.

    FDIC insured

    Lincoln Savings Bank

    Direct deposit

    Get two days early

    ATM withdrawals

    Unlimited with at least $300 deposit each month

    Prime perk

    Deposit cash through retailers such as Walgreens, 7-Eleven, Family Dollar and Speedway

    More Information About the Cash Card

    To get more functionality out of your Cash App account, sign up for the Cash App debit card called Cash Card, a debit card that turns your Cash App account into a fully-fledged bank account.

    With a Cash Card, your Cash App account becomes an FDIC-insured direct deposit account backed by Lincoln Savings Bank.

    Other Features of the Cash Card

    The following features can help you decide if the Cash Card is right for you.

    Funding the Account

    You can use your routing and account number to set up direct deposit for your paycheck and other payments. You can get paid up to two days ahead of the scheduled payday depending on when the payer initiates a direct deposit.

    The Cash App account can only be funded through electronic payments: direct deposit, transfers from a linked bank account or payments from other Cash App users. As of 2022, Cash App users can deposit checks through the app. To do so, tap the “$” icon to see your Cash App balance. Then, tap on the “Deposit a Check” option, enter the amount of the check you are depositing, then follow the prompts to take photos of the front and back of the check. You cannot use Cash App for wire transfers, though.

    You can deposit cash into your account through retailers including Walmart Customer Service Desk/ Money Centers, Walgreens, 7-Eleven, Family Dollar, Sheetz, KwikTrip, Speedway, StopNGo and Dollar General.

    Withdrawing Cash

    You can withdraw cash from ATMs with your debit card, and Cash App will reimburse up to three ATM  fees each month as long as you receive at least $300 in direct deposits each month. Otherwise, you’re responsible for a $2 ATM fee charged by Cash App, plus any fees the ATM operator charges.

    You can also use your bank account to pay bills and credit card payments by giving the payee your Cash App routing and account number to schedule a payment or set up auto pay.

    You can use your Cash Card for purchases anywhere Visa is accepted. The fun part? When you order a Cash Card, you can add a custom doodle or emojis to the card’s design from right in the app; you will be the only one to own that unique Cash Card.

    Debit Card Rewards

    When you pay with your Cash Card, you have access to special deals from retailers with Cash Boost discounts.

    Find Boosts from the Cash Card section in the app, and select a Boost you want to use. The Boost will be added to your account and applied when you buy from that retailer.

    A Bitcoin Boost is an offer that rewards you in Bitcoin for a purchase with your Cash Card. Those rewards go straight to your Bitcoin balance.

    Investing and Cryptocurrency

    Cash App seamlessly integrates investing and Bitcoin collecting into the app alongside banking and payments.

    Stock Investing With Cash App

    You can use Cash App to open a brokerage account and trade stocks and mutual funds. The app shares stock market news and lets you see the recent performance of stocks before you buy.

    The app is set up for active, self-directed stock trading, so it’s not a good fit if you prefer a robo-advisor to create a portfolio for you. You can set up daily, weekly or bi-weekly auto-invest on particular securities. You can buy fractional shares of any stock or ETF with as little as $1 ($10 for auto-invest).

    Cash App doesn’t make every stock or fund available, though it’s constantly expanding what you can access through the app.

    For now, you can buy or sell stocks or ETFs listed on the New York Stock Exchange (NYSE) or Nasdaq that have more than $1 billion in market capitalization or more than $5 million average daily trade volume, as long as they’re supported by DriveWealth, the broker behind Cash App Investing.

    Buy and Sell Bitcoin on Cash App

    You can use your Cash App funds to buy Bitcoin through the app without setting up a separate crypto wallet or an account on a crypto exchange.

    You can always deposit Bitcoin into your Cash App Bitcoin account (a crypto wallet within your account) by sharing your wallet address with an external wallet. Don’t send any other cryptocurrencies to Cash App — the app only supports Bitcoin and all other currencies will simply be lost in the transaction.

    Withdraw Bitcoin to an external wallet by entering the wallet’s address in Cash App to make the transfer.

    Pay With Bitcoin

    You can make payments in Bitcoin to friends, family or merchants using the option to pay with Bitcoin during the transaction. These transactions come out of your Cash App account balance, not your Bitcoin wallet balance. Technically, you send the recipient cash they can use to buy Bitcoin.

    To send and receive Bitcoin directly between your wallet and another, you have to enter the other wallet address or scan their QR code in the Bitcoin section of the app. That way you can make an actual decentralized transaction on the blockchain. (This feature is available everywhere in the U.S. except New York state.)

    Cash App Taxes

    Starting in 2022 (for the 2021 tax year), Cash App has taken over Credit Karma Tax to let you file your taxes for free from the app or online.

    Cash App Taxes supports most common tax situations, including some for more complex filers, like business income and itemizing deductions. You can file a federal and state tax return for free and have the option to get your refund deposited directly into your Cash App account.

    Like other tax software, Cash App Taxes comes with an accuracy and maximum refund guarantee.

    Cash for Business

    If you want to use Cash App to get paid for products or services you sell in your business, you need a business account in the app. It is easy to change your account type via your in-app profile.

    A Cash for Business account gives you unlimited daily transfers, while a personal account limits them, so you can accommodate the higher volume of transactions you’re likely to have as a business. Cash for Business accounts let you receive payments from customers using credit or debit cards by sending them a payment link.

    Cash for Business is a good option for new and very small businesses, but its features are limited to sending and receiving cash. As your business grows, you can switch to Square or another payment processor to access more features.

    Business owners accrue a 2.75% transaction fee to receive money through Cash for Business. This fee is automatically deducted from each sale. Sending money is always free.

    Cash App Fees

    Fees in Cash App are minimal. The app does away with common financial services costs, including:

    • There’s no minimum deposit to open an account and no minimum balance.
    • Cash App has no monthly fees
    • There are no overdraft fees — if you have insufficient funds, transactions will be declined.
    • Cash App does not charge commissions for investing.
    • Cash App does not charge foreign transaction fees for using your Cash Card for purchases in or from other countries.
    • Up to three ATM fees per month are reimbursed so long as you have at least $300 per month in direct deposits.

    You can expect to pay these fees:

    • ATM withdrawal: Cash App charges $2, and you must pay any fee charged by the ATM operator outside of the Visa network. Cash App reimburses up to three ATM fees per month so long as you have at least $300 per month in direct deposits.
    • Investing fees: Cash App will alert you before a buy if your investment comes with any regulatory or government fees.
    • ETF expense ratios: ETFs and mutual funds usually come with fees of around 0.5% to 2%, which come out of your investment account balance (i.e. no upfront fees). Those fees go to the fund managers, not Cash App or its broker.
    • Bitcoin fees: Cash App may charge a fee when you buy or sell Bitcoin, which varies with the market price of the cryptocurrency. You must also pay a fee for an expedited Bitcoin withdrawal, but standard-speed withdrawals are free.

    Cash App Customer Experience

    Cash App has a pared-down, intuitive and user-friendly design with an interface that makes it easy to set up in seconds and simple for anyone to figure out how to use it. You can easily flow between banking, sending and receiving money, stock investing and Bitcoin collecting from one screen.

    The app is highly rated: 4.7 stars in the Google Play Store and 4.8 stars in the iOS App Store.

    You can contact customer support for Cash App primarily through the app, and you can also reach them:

    • Online at cash.app/help.
    • Over the phone at 800-969-1940.
    • On social media @CashApp on Instagram, Twitter, TikTok and Twitch; u//CashAppAndi on Reddit; and SquareCash on Facebook.

    Avoid Cash App Scams

    The biggest consumer complaint about Cash App is less about the app or company itself and more about how scammers have used the app to steal users’ information or money.

    To avoid scams, Cash App recommends:

    • Only send payments to people you know and trust. Do not respond to transfer requests from accounts you don’t recognize.
    • Double-check recipient information like their email address, phone number or $Cashtag before sending money to make sure the funds are going to the right person.
    • Check the recipient’s profile to make sure it is the person you’re looking for. Do not make a guess or assumption based on a $Cashtag.
    • Do not send money to anyone who sends a request and promises something in the future (like free money in return).
    • Do not give your Cash App password, PIN or other sensitive information to someone who asks for it, even if they claim to be from Cash App. The company says it will never ask you to share sensitive information, even for Cash App sweepstakes and giveaways.
    • Do not ever send a “test” transaction to someone claiming to be from Cash App. The company says it will never ask for this.

    If you get scammed through the app, you can report an issue with the payment through the app and report or block the account. Cash App notes most transfers cannot be canceled, though you can file a dispute for a fraudulent Cash Card transaction.

    Is Cash App Right for You?

    Cash App is a straightforward banking, payments and investing app for individuals with uncomplicated financial circumstances.

    Some people wonder how safe Cash App is. Most popular money transfer apps keep your money safe by encrypting your data, requiring security measures and offering bank-backed protection for your account balances. To learn more about Cash App’s major competitors, check out our comparison of Venmo versus PayPal.

    Cash App might be right for you if you:

    • Live in the U.S. or UK.
    • Have trouble opening traditional bank accounts because of bad history on ChexSystems.
    • Use a bank account for yourself and do not need a joint account.
    • Frequently exchange money with friends or family.
    • Want to dip your toe into stock or crypto trading without a major investment.
    • Get paid primarily through direct deposit.
    • Own a small business that needs a simple, affordable and mobile POS.

    Cash App probably isn’t a fit for you if you:

    • Live outside of the U.S. or UK.
    • Need a joint bank account with a partner.
    • Need a business bank account.
    • Want other financial products, including savings, loans, credit cards and other services in one place.
    • Want a robo-advisor for passive investing.
    • Are interested in cryptocurrency other than Bitcoin.

    Pros and Cons of Cash App

    This list will help you understand the great and not-so-great attributes of Cash App.


    Pros

    • Send and receive cash, stock and Bitcoin with friends and family for free
    • Invest in stocks and ETFs with as little as $1
    • Pay with your Cash App balance at Square merchants
    • Use your Cash Card for in-store payments anywhere Visa is accepted
    • No minimums and no service fees for banking
    • Early payday with direct deposit if you get a Cash Card
    • Up to three free ATM withdrawals per month with a Cash Card
    • Mobile banking with cash deposits
    • Commission-free investing


    Cons

    • Only available in the UK or U.S.
    • You cannot order or write paper checks
    • No joint accounts
    • You will not earn interest on your account balance

    Frequently Asked Questions (FAQs) About Cash App

    Here are our answers to common questions about Cash App.

    Yes. While users have reported scams to watch out for, you can trust that Cash App keeps your money safe. Cash App’s parent company, Block, Inc. (formerly Square, Inc.) was founded in 2009 by former Twitter CEO Jack Dorsey and entrepreneur and venture capitalist Jim Mckelvey. Cash App encrypts your data and offers security measures and fraud protection to keep your identity and money safe from thieves. FDIC and SIPC insurance through partner banks protects your account balances.

    Can Cash App Take Your Money?

    No. The money in your Cash App account, Bitcoin wallet and brokerage account are yours. Cash App does not charge any service fees or commissions for investing. If you have been defrauded by someone claiming to be from Cash App, immediately report and block the account and contact Cash App customer service.

    What Are the Disadvantages of Cash App?

    Cash App’s simple banking and investing platform is not a good fit for everyone. If you have complex banking needs, like loans, credit cards, insurance or a business account, a more traditional bank account is a better fit. Cash App is best if your financial needs revolve on moving money around between friends and family.

    Is Cash App Better Than PayPal?

    Cash App and PayPal offer many of the same services, but Cash App focuses on consumers while PayPal is better suited for businesses. Both apps offer limited personal and business services, but Cash App is a better choice if you want to use a simple bank account and send and request money with friends and family.

    Yes. You can open a Cash App account with no minimum balance, and there is no service fee. The app does not charge commissions for trading stocks, though you may pay occasional fees for trading Bitcoin and some regulatory fees for trading stocks. With a Cash Card, you pay a $2 ATM fee, but Cash App reimburses up to three ATM fees per month as long as you have at least $300 in direct deposits per month.

    Contributor Dana Miranda is a Certified Educator in Personal Finance® who has written about work and money for publications including Forbes, The New York Times, CNBC, Insider, NextAdvisor and Inc. Magazine. Freelancer Kristin Jenny contributed to this report. 


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

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  • 16 Best Debt Consolidations Loans of 2023

    16 Best Debt Consolidations Loans of 2023

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    A debt consolidation loan is a path to relief for a lot of people struggling to manage credit cards and other high-interest debt.

    Debt consolidation replaces your existing debts with a single loan, usually with more favorable terms, like a lower interest rate that’ll save you money, or a lower monthly payment and longer repayment period that gives you more breathing room.

    These loans are a common part of savvy debt payoff strategies, because they can often help you save money, pay off debt faster or both. If you feel like you’re drowning in debt, they could extend the time it takes you to pay and take the stress off of keeping up with monthly payments.

    Debt consolidation loans are available from lenders as personal loans, sometimes marketed specifically as “debt consolidation loans” and sometimes simply as personal loans.

    We’ve reviewed some of the top personal loan lenders online to help you find the best debt consolidation loans available for your financial situation and goals.

    Note: Loan terms accurate as of January 6, 2023 and subject to change. See lenders for most up-to-date information.

    Best Debt Consolidation Loans at a Glance

    Company APR with Autopay Min. and Max. Loan Amounts Loan Terms
    Universal Credit 11.69% – 35.93% $1,000 – $50,000 36 to 60 months SEE DETAILS
    Happy Money 7.99% – 29.99% $5,000 – $40,000 2 – 5 years SEE DETAILS
    LightStream 7.99% – 24.49% $5,000 – $100,000 Up to 12 years SEE DETAILS
    Credible Personal Loans 5.40% – 35.99% $600 – $100,000 2 – 7 years SEE DETAILS
    Upstart 6.5% – 35.99% $1,000 – $50,000 3 or 5 years SEE DETAILS
    SoFi 7.99% – 23.43% $5,000 – $100,000 3 – 7 years SEE DETAILS
    Figure 5.75% – 31.44% $5,000 – $50,000 3 years SEE DETAILS
    Upgrade 7.96% – 35.97% $1,000 – $50,000 24 – 84 months SEE DETAILS
    Rocket Loans 8.416% – 29.99% $2,000 – $45,000 36 or 60 months SEE DETAILS
    Discover 6.99% – 24.99% $2,500 – $35,000 36, 48, 60, 72 or 84 months SEE DETAILS
    Marcus 6.99% – 24.99% $3,500 – $40,000 36 – 72 months SEE DETAILS
    LendingClub 6.34% – 35.89% $1,000 – $250,000 6 or 144 months SEE DETAILS
    Prosper 6.99% – 35.99% $2,000 – $50,000 2 or 5 years SEE DETAILS
    Avant 9.95% – 35.99% $2,000 – $35,000 24 – 60 months SEE DETAILS
    LendingPoint 7.99% – 35.99% $2,000 – $36,500 24 – 72 months SEE DETAILS

    Universal Credit

    Best for Credit Scores below 600

    Key Features

    • Funding within one day
    • Fixed interest rate
    • Rate discounts for debt pay off

    Universal Credit is designed especially for debt consolidation and pay off. It offers rate discounts of between one and two percentage points — pretty significant! — for borrowers who use a Universal Credit personal loan to directly pay off credit card debt. Loans are available for borrowers with fair or bad credit.

    Universal Credit

    APR

    11.69% – 35.93%

    Loan amounts

    $1,000 – $50,000

    Minimum credit score

    560

    Happy Money

    Best for Community-Based Lenders

    Key Features

    • Designed for credit card payoff
    • Borrow from community-based lenders
    • Loans up to $40,000

    Happy Money’s Payoff Loan is designed specially for credit card debt consolidation. The financial tech company works with community credit unions and mission-driven community banks to provide personal loans to pay off your debt directly. Choose the plan that works best for you, whether it’s a lower monthly payment, lower interest rate or earlier payoff date.

    Happy Money

    APR

    7.99% – 29.99%

    Loan amounts

    $5,000 – $40,000

    Minimum credit score

    640

    LightStream

    Best for Good to Excellent Credit

    Key Features

    • Same-day funding
    • No fees
    • Loans available for low credit scores

    LightStream’s personal loans for borrowers with good or excellent credit can help you get hold of up to $100,000 as soon as the same day you’re approved. It also eschews fees and offers to beat the rate of any competitor — just submit information about a lower rate you’re offered elsewhere, and LightStream will offer you a rate 0.10 percentage points lower through its Rate Beat program.

    LightStream

    APR

    7.99% – 23.99%

    Loan amounts

    $5,000 – $100,000

    Minimum credit score

    660

    Credible

    Best for Low Loan Amounts

    Key Features

    • Compare rates from top lenders
    • Loans for poor credit available
    • Loan amounts as low as $600

    Credible is a lending marketplace that can help you find debt consolidation loans as low as $600. You don’t have to worry about Credible selling your information like other comparison sites — it only gets paid when you accept a loan offer, so it won’t help lenders pester you. You can use the site to compare loan offers side by side and click through to the lender’s site to officially apply.

    Credible

    APR

    5.40% – 35.99%

    Loan amounts

    $600 – $100,000

    Minimum credit store

    560

    Upstart

    Best for Non-Traditional Credit History

    Key Features

    • AI-powered lending for partner banks
    • Considers more than your credit history
    • Loan amounts as low as $1,000

    Upstart is technically a technology company, not a lender or a marketplace. Its platform uses proprietary AI to connect you with partner lenders, and you manage the loan entirely through the platform. Upstart uses more than a traditional credit score to assess your creditworthiness, so factors like your education and income could help you get a loan even if you have a low or no credit score.

    Upstart

    APR

    6.5% – 35.99%

    Loan amounts

    $1,000 – $50,000

    Minimum credit score

    580

    SoFi

    Best for SoFi Customers

    Key Features

    • No fees
    • Access to events and perks
    • Discounts for SoFi clients

    SoFi is an online bank that offers financial services ranging from banking to student loans to investing. It offers debt consolidation loans with no fees, and you can apply and manage your account right from its convenient app. You can qualify for a discounted interest rate if you’re an existing SoFi member with a free SoFi bank account or other product in the app.

    SoFi

    APR

    7.99% – 23.43%

    Loan amounts

    $5,000 – $100,000

    Minimum credit score

    600

    Figure

    Best for Crypto-Backed Loans

    Key Features

    • Next-day funding
    • Powered by Provenance blockchain
    • 0% to 5% origination fee

    Figure is an innovative online lender that offers personal loans, with blockchain technology adding efficiency and transparency to its application and loan origination processes. It offers traditional and crypto-backed loans. Figure doesn’t offer direct debt payoff, but you can take out a personal loan up to $50,000 and use the funds to pay off your debts.

    Figure

    APR

    5.75% – 31.44%

    Loan amounts

    $5,000 – $50,000

    Minimum credit score

    680

    Upgrade

    Best for Raising Credit Score

    Key Features

    • Checking, credit and loans in one platform
    • No prepayment penalties
    • Next day funding

    Upgrade is a financial tech platform designed to help you raise your credit score through checking, credit cards, credit monitoring and personal loans. It offers debt management and payoff in one platform, and you may qualify for a debt consolidation loan with a fair or bad credit score as low as 580.

    Upgrade

    APR

    7.96% – 35.97%

    Loan amounts

    $1,000 – $50,000

    Minimum Credit Score

    580

    Rocket Loans

    Best for Transparent Process

    Key Features

    • Same day funding
    • No prepayment penalties
    • All-online application

    Rocket Loans lets you apply online for a debt consolidation personal loan in minutes. The online application starts with a transparent overview of the process, so you know what to expect at each step as you await your loan. You can verify your income and identity entirely online, so you don’t have to worry about phone calls or snail mail slowing down the process.

    Rocket Loans

    APR

    8.416% – 29.99%

    Loan amounts

    $2,000 – $45,000

    Minimum credit score

    610

    Discover

    Best for Flexible Repayment Options

    Key Features

    • No fees (except late fees)
    • Repayment assistance options
    • Free FICO credit score

    Discover’s debt consolidation loans are fee-free and available to borrowers with a credit score as low as 660. Its repayment assistance options are robust compared to many competitors: If your financial situation changes, you could apply for payment deferral, a short-term shift to interest-only payments or extend your repayment period for lower monthly payments.

    Discover

    APR

    6.99% – 24.99%

    Loan amounts

    $2,500 – $35,000

    Minimum credit score

    660

    Marcus

    Best for On-Time Payment Rewards

    Key Features

    • No fees
    • Skip-a-payment reward for on-time repayment
    • Customize your monthly payment

    Marcus is the personal banking arm of Goldman Sachs, offering individual savings, investing, credit cards and loans. Its personal loans are available to borrowers with good credit for up to $40,000, with no fees — not even late fees. And it rewards you for on-time payment: Make your monthly payment on time for 12 months in a row, and you can defer payment for a month with no additional interest accrued.

    Marcus

    APR

    6.99% – 24.99%

    Loan amounts

    $3,500 – $40,000

    Minimum credit score

    660

    LendingClub

    Best for Bad Credit Loans

    Key Features

    • Borrow up to $250,000
    • Funding within 48 hours
    • No prepayment penalty

    LendingClub calls itself an “online marketplace bank.” It offers checking accounts and personal loans, including loans for debt consolidation, up to $250,000 for terms of three to five years. LendingClub can be a good option if you have a low credit score; loans may be available for lenders with scores as low as 600.

    LendingClub

    APR

    5.99% – 35.89%

    Loan amounts

    $1,000 – $40,000

    Minimum credit score

    600

    Prosper

    Best for Peer-to-Peer Borrowing

    Key Features

    • Peer-to-peer lending
    • Next-day funding
    • No prepayment penalty

    Prosper is one of few peer-to-peer lending platforms left — individuals and financial institutions can invest in personal loans to support borrowers and earn a little bit of a return. You don’t have to deal with investors directly; Prosper manages the application and loan origination. Loans are available from $2,000 to $50,000 with a credit score as low as 600.

    Prosper

    APR

    6.99% – 35.99%

    Loan amounts

    $2,000 – $50,000

    Minimum credit score

    600

    Avant

    Best for Fair Credit Loans

    Key Features

    • Next-day funding
    • Minimum credit score 580
    • Not available in New York

    Avant offers personal loans up to $35,000, with funding as soon as the next business day after approval. The lender’s minimum credit score is just 580; most borrowers have FICO scores between 600 and 700.

    Avant

    APR

    9.95% – 35.99%

    Loan amounts

    $2,000 – $35,000

    Miminum credit score

    580

    LendingPoint

    Best for Fair Credit Borrowers

    Key Features

    • Next-day funding
    • No co-sign loans
    • Not available in Nevada or West Virginia

    LendingPoint assesses creditworthiness with a proprietary algorithm that looks beyond traditional FICO scores, so it’s able to lend to borrowers with scores as low as 600. LendingPoint loans are available in every state except Nevada and West Virginia.

    LendingPoint

    APR

    7.99% – 35.99%

    Loan amount

    $2,000 – $36,500

    Minimum credit score

    600

    How Does a Debt Consolidation Loan Work?

    A debt consolidation loan is a type of personal loan you take out to pay off existing debts, and it’s most commonly used to pay off high-interest credit card debt.

    The reason this is beneficial, even though you still have to repay the same amount of debt, is that personal loans come with much lower interest rates than most credit cards. You might have a few credit card balances accumulating interest at around 16% to 25%, while personal loans usually come with interest rates closer to 5% to 12%.

    A “debt consolidation loan” is just a personal loan marketed specifically for debt payoff. They work exactly like personal loans on paper, except that many lenders send loan funds directly to creditors for you. If they don’t, you could still take out a personal loan and use the funds to pay off debts yourself.

    To make a debt consolidation loan worth it, you should receive at least one of these benefits:

    • A lower interest rate (lower than the average of the debts you’re paying off).
    • A lower monthly payment than the total of what you pay now. This could come with a higher interest rate and/or longer repayment period, but it might be what you need for now to stay above water. You can always refinance in the future for a better rate.
    • Quicker payoff. A debt consolidation loan might come with a higher monthly payment, but if you can manage it, that could simplify your debt management, save you on interest and get you out of debt faster.
    • Longer repayment. If you’re consolidating or refinancing existing loans with short repayment terms, a new loan could extend the time you have to repay by lowering your monthly payment. You’ll likely pay more in interest this way, but it could ease your monthly commitments.

    How to Choose a Debt Consolidation Loan

    Before you commit to any debt consolidation option, shop around to see what lenders can offer you. Your available terms could vary quite a bit from lender to lender because of how they evaluate your credit history and what kind of borrowers they’re targeting.

    Online lending marketplaces like Credible or Fiona make it easy to quickly see and compare pre-qualified offers from lenders side-by-side, so they could save you some time.

    To choose the loan that fits your financial goals, consider these features:

    • Interest rate: If your main goal is to save money, look for a debt consolidation loan with an interest rate that’s lower than the average rate on your existing debts. Lenders typically offer lower interest rates with shorter repayment periods, so play with those factors to land on a rate that works for you.
    • Monthly payment: Primarily, you need a monthly payment you can pay comfortably every month, considering your existing commitments. If you’re overwhelmed by your current debt payment, refinancing or consolidating into a loan with a lower monthly payment could offer some relief. It’ll probably come with a later payoff date, which could mean you pay more in interest over time — but that lower bill could make the difference between paying on time or not.
    • Repayment term: This is the number of months or years to repay the loan. A longer term (or period) means lower monthly payments, but often comes with a higher interest rate and will mean more time for interest to accumulate. A shorter repayment term means a quicker payoff date, so if your goal is fast debt elimination, look for lenders that offer one- or two-year terms.
    • Fees: Many of the lenders we’ve listed charge no fees, but some still charge an origination fee, which lops off a small percentage of your loan up front. Some companies also charge late payment fees and a few companies even charge a prepayment penalty, which means you could pay extra if you pay off the loan early.

    Debt Consolidation Loan Costs to Consider

    Debt consolidation loans come with the typical costs included with any personal loan, including:

    • Interest: This is the extra you’ll repay on top of the amount you borrow. Debt consolidation loan rates could be as low as 3.5% or as high as 35.99%, depending mostly on your credit. Avoid loans with a higher interest rate than your existing debt unless consolidation feels like your only option to meet your financial goals.
    • Origination fees: A lot of lenders charge a fee up front just for making you the loan. It’s usually charged as a percentage of the loan amount, around 2% or 3%, and it’s deducted from the initial funds you receive. If your lender charges an origination fee, take that into account to make sure you get the funds you need to cover your debt balances.
    • Late fees: Some lenders charge a late fee if you make a payment past the monthly due date. The fee is typically a percentage of the payment due or a flat fee. Take note of these in your loan agreement if your financial situation changes and you’re unable to make payments on time. You might be able to avoid them by working with the lender to move your due date or ask for a deferment period.
    • Prepayment penalties: Few lenders of debt consolidation loans charge these anymore, but double-check before you sign an agreement. Prepayment penalties are fees you owe if you repay ahead of schedule — either paying your loan balance off early or getting too far ahead on your monthly payments.

    Debt Management vs. Consolidation vs. Refinancing

    As you seek options to tackle your debt, you’ll probably come across information and services for debt management, debt consolidation and debt refinancing. They all have similar aims, but they’re not the same things.

    • Debt management is a service offered by nonprofit organizations to get difficult debt under control. You work with a debt counselor to make arrangements with creditors, like adjusted repayment plans or reduced balances, and you make a single monthly payment to the organization, which pays creditors on your behalf.
    • Debt consolidation is a personal loan or balance transfer credit card that replaces existing debt. You use a debt consolidation loan to pay outstanding balances, so you only owe money to a single lender each month, ideally with a lower interest rate or lower monthly payment.
    • Debt refinancing is a way to take an existing loan and repackage it with different terms. Like consolidation, you basically replace one loan with another, but refinancing focuses on just one loan, rather than a plethora of debt accounts. You can often go back to your existing lender to ask for better terms — because, say, your credit has improved or the prime rate has gone down — or shop around for other offers.

    Alternatives to Debt Consolidation Loans

    Debt consolidation loans aren’t the only avenue for tackling your debt. Consider these other options and their effect on your credit score and financial goals before committing to a loan:

    • Balance transfer cards: These credit cards let you transfer the outstanding balance of an existing card or several, so you pay it off to the new creditor. It’s a way for a credit card company to entice you away from a competitor. Balance transfer cards usually offer an interest-free period of about a year. If you expect to be able to repay your credit card debt within that period, this is a great way to save on interest. If you don’t repay within that period, though, back interest usually comes due, and your balance could become less manageable than you expected.
    • Refinancing: If you have a single loan with unfavorable terms, you could return to the lender and ask to refinance. This could get you a lower interest rate or different monthly payment, depending on your financial situation and needs.
    • Debt forgiveness: A debt management plan usually comes with some amount of forgiven debt, which could offer a tremendous amount of relief. You might also be able to negotiate a reduced repayment amount on your own directly with your creditors. This kind of settlement usually shows up on your credit report as a negative mark.
    • Deferment: Check the terms of your existing debt to see if your lender offers deferment or other flexible repayment options. You may just need a month or two off of monthly payments or interest to get back on track, and that could save you the trouble of applying for a whole new loan.

    What Is the Smartest Way to Consolidate Debt?

    Two main options exist to consolidate credit card debt: a debt consolidation loan or a balance transfer card. Each has pros and cons, and which is best for you depends on your financial situation and goals.

    A debt consolidation loan usually comes with a longer repayment period and a lower interest rate than a balance transfer card. The loan pays off your existing debts, and you just owe one monthly payment to the new lender. Ideally, you’ll lower your interest rate or monthly payment, depending on your goal.

    A balance transfer card absorbs the balance of other credit cards and lets you continue to spend on the new balance. They often come with a year or so of no interest for the transferred balance, so this could be a strategic way to save money if you’re paying off debt fast. Back interest usually comes due at the end of the introductory period, though, so this becomes a costly option if you don’t pay your debt down fast.

    A debt consolidation loan is probably a better option in most cases, because it sets you up for slower, steady debt payoff at a monthly payment you can manage and an interest rate that hopefully saves you money.

    A balance transfer card is a smart strategy if you’re focused on quick debt payoff and are pretty certain you’ll eliminate your balance within the next 12 months. It can, however, be a risky move if you don’t have that solid plan in place to prioritize debt payoff for the near future.

    How Does Debt Consolidation Affect Your Credit Score?

    Debt consolidation could lower your credit utilization and create a positive line on your credit report, which could improve your credit score over time.

    Here’s how it works:

    • Credit utilization: Paying off your credit card debt — even if you take on a loan to do it — lowers the amount of your available credit you’re using, called your credit utilization. Lower utilization is better for your credit score.
    • Credit report: Making your loan payments on time or ahead of time throughout the life of the loan creates a positive line on your credit report, which can help to balance any negative marks you’ve accumulated with unpaid credit card debt.

    Debt consolidation could also impact your credit score negatively in these ways:

    • New credit inquiry: When you apply for a loan, the lender does a hard credit inquiry, which shows up on your credit report as a request for credit. Your credit score will probably take a temporary dip because of that, but that effect doesn’t tend to last beyond a few months.
    • Payment history: Paying your loan on time will be good for your credit score — but if you don’t make payments on time or you default on the debt consolidation loan, it’ll hang out on your credit report for about seven years and hurt your score.

    How to Protect Your Credit When You Consolidate Debt

    Debt consolidation can be a smart strategy as part of a plan to pay off your debt and improve your credit score. Replacing high-interest balances with a lower-interest loan is a smart step toward eliminating debt, which is good for your credit score.

    But be careful not to make these common mistakes when you consolidate debt — they could end up hurting your credit score:

    • Don’t close your paid accounts. Leave your credit card accounts open even after you pay off the balances. If you want to avoid using the cards again, cut up the physical cards, remove the virtual cards from your digital wallet and erase the card numbers from your browser. Keeping old accounts open ensures you have mature accounts in your credit history, and the unused balances help reduce your credit utilization.
    • Don’t skip monthly payments. Plan ahead to take out a loan with monthly payments you expect to be able to absorb. If you’re coming up on a monthly payment you won’t make on time, contact the lender ASAP to negotiate a different due date, deferment or other flexible repayment option. Missing monthly payments dings your credit report and will certainly lower your score, in addition to racking you up more debt in fees and interest.
    • Don’t add more credit card debt. If you can avoid it, don’t use credit cards while you repay your debt consolidation loan. Or use them with careful intention, and repay your purchases frequently (like, daily) to avoid carrying a new balance. This lets you concentrate on paying off just the one debt, so you can work toward financial relief.

    Keep on Refinancing

    You don’t have to stop after one debt consolidation loan.

    After you’ve made on-time payments for a year or so, check your options again to see if you could refinance to even more favorable terms. Your positive payment history and reduced credit card debt can very likely improve your credit score and expand your options for better loans.

    Knowing this is an option down the road could give you some relief now, too: You may need to take out a high-interest loan with a long repayment term because you have bad credit now. Consolidating your debt this way might be your best path to getting out from under a mountain of stressful and confusing debt. But you don’t have to stick with those terms forever.

    As your credit score improves and your debt balance goes down, consider refinancing the loan in the future to get better terms that’ll save you money and help you reach your goals even faster.

    Frequently Asked Questions (FAQs) About Debt Consolidation Loans

    We’ve rounded up answers to some of the most commonly asked questions about debt consolidation loans.

    What Credit Score Do You Need for a Consolidation Loan?

    Plenty of lenders make loans available for borrowers with bad or fair credit scores in the high 500s to mid 600s. Just watch out for the interest rate. It doesn’t usually help you to replace your existing debt with a loan with a higher interest rate. And a monthly payment you can’t pay won’t improve your situation, either.

    The higher your credit score, the better odds you’ll always have for landing a loan and getting favorable terms. But you don’t necessarily need a good or excellent credit score to get a debt consolidation loan.

    Does Consolidation Affect Credit Score?

    Your credit score can be hurt temporarily by a debt consolidation loan. It can also hurt your credit utilization score. However, meeting the payment deadline on the consolidation loan will help your score over time.

    Do Debt Consolidation Loans Typically Work?

    Debt consolidation loans are most helpful for people with credit card debt. The consolidation loans often have a lower interest rate than credit cards which means more of your money is going to pay down the loan amount. They also work if you meet the payment deadline.

    Contributor Dana Miranda is a Certified Educator in Personal Finance® who has written about work and money for publications including Forbes, The New York Times, CNBC, Insider, NextAdvisor and Inc. Magazine. Freelancer Veronica Matthews contributed to this post. 


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

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  • Best CD Rates of 2023

    Best CD Rates of 2023

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    A certificate of deposit — CD for short — is a low-risk savings account that holds a fixed amount of money for a certain time, such as six months, one year or five years.

    During that time, your deposit earns a fixed interest rate. Usually, the longer the term, the higher the interest rate.

    When the CD term is up, you receive your initial deposit back plus the interest earned.

    Unlike a savings account, CDs typically don’t let you withdraw money whenever you want. CD accounts require you to leave funds untouched for a fixed period or else face an early withdrawal penalty.

    These penalties usually range from three months of interest to one year worth of interest, depending on the term length.

    You can buy a certificate of deposit from a bank or credit union. Bank CD accounts are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 — just like savings accounts and money market accounts.

    Credit unions issue share certificates, which are the credit union equivalent of CDs. These are also insured for up to $250,000, but by the National Credit Union Administration (NCUA) instead of the FDIC.

    CD vs. Savings Account: Which Is Better?

    If you’re debating between a certificate of deposit or a savings account, ask yourself this question: Do you care more about interest rates or access to your money?

    A CD account usually earns a higher annual percentage yield (APY) than what you usually find in a high-yield savings account — but your money is harder to access.

    If you need easier access to your funds, a savings account is a better option.

    But a traditional savings account doesn’t earn much interest. In fact, the national APY for savings accounts is just 0.33%.

    So if you’re saving for a short-term goal and want to earn as much interest as possible, a certificate of deposit is likely a better choice than a savings account.

    Opening a CD makes sense when you are free of credit card debt and already have an emergency fund built up in your savings account.

    Best CD Rates Compared

    Bank Best for APY Minimum Opening Deposit Term Length
    Marcus by Goldman Sachs No-penalty CDs 3.75%- 4.40% $500 6 months to 6 years SEE DETAILS
    Discover Bank CD laddering 1.50% – 4.40% $2,500 3 months to 10 years SEE DETAILS
    Ally Bank Bump rate CDs 2% – 4.35% $0 3 months to 5 years SEE DETAILS
    Synchrony Bank Rate guarantee 2.25% – 4.60% $0 3 months to 5 years SEE DETAILS
    Capital One No minimum balance requirement 3.30% – 4.40% $0 6 months to 5 years SEE DETAILS
    PenFed Credit Union 18-month and 2-year CDs 2.0% – 4.35% $1,000 6 months to 7 years SEE DETAILS
    Bread Savings High APYs 1.75% – 2.55% $1,500 1 year to 5 years SEE DETAILS
    Quontic Bank 6-month CDs 3.50% – 4.45% $500 6 months to 5 years SEE DETAILS

    Marcus by Goldman Sachs

    Best for no-penalty CDs

    Key Features

    • Above-average CD rates
    • $500 minimum deposit
    • Various term lengths

    Marcus by Goldman Sachs consistently offers some of the best CD rates on the market. It’s one of the few online banks that offers a no-penalty CD option, including seven-month, 11-month and 13-month CD accounts. Term lengths for high-yield CDs range from six months to six years. Marcus by Goldman Sachs also offers a 10-day rate guarantee on CDs.

    Marcus by Goldman Sachs

    Annual Percentage Yield (APY)

    3.75% – 4.40%

    Term Length

    6 months to 6 years

    Minimum Deposit

    $500

    Additional Details

    Marcus by Goldman Sachs offers competitive CD interest rates with terms ranging from six months to six years. 

    CD rates range from 3.75% for a 6-month CD to 4.40% APY for an 18 month CD. The $500 minimum deposit requirement is lower than some other banks and credit unions. 

    The company offers two types of certificates of deposit: a high-yield CD and a no-penalty CD. Term lengths for no-penalty CDs range from seven months to 13 months with 0.45% to 3.50% APY. 

    Unlike traditional CDs, no-penalty CDs let you withdraw money at any time without paying a fee or losing interest. 

    Early withdrawal penalties from a standard high-yield CD are as follows: Loss of three months worth of interest on CDs with a maturity date of less than a year, nine months of interest for CD terms of one to five years and a year’s worth of interest for six-year CDs. 

    Marcus by Goldman Sachs is also well-known for its high-yield savings accounts, which consistently offer above-average interest rates. 

    Discover Bank

    Best for CD laddering

    Key Features

    • 12 different term lengths
    • Competitive CD rates
    • IRA CD

    Discover Bank offers 12 different CD term lengths — more than many of its competitors. This variety of maturity dates gives customers multiple options for CD laddering. Bank CD terms range from three months to 10 years. The minimum deposit of $2,500 is somewhat high but Discover Bank CD rates are competitive.

    Discover Bank

    Annual Percentage Yield (APY)

    1.50% – 4.40%

    Term Length

    3 months to 10 years

    Minimum Deposit

    $2,500

    Additional Details

    Discover, best known as a credit card company, boasts a strong selection of financial products — including CDs. 

    Discover Bank CDs are available in 12 term lengths, from three months to 10 years and with APYs ranging from 1.50% to 4.40%. 

    Numerous CD terms makes it easy for consumers to explore CD laddering options. A CD ladder involves opening multiple CDs with staggered maturity dates. Doing so lets you earn interest while providing easier access to your money. 

    Another perk: Discover offers CDs for individual retirement accounts (IRA CDs). 

    We’re not in love with Discover’s $2,500 minimum deposit requirement, which is higher than other online banks and credit unions on this list. 

    The early withdrawal penalty for Discover CDs ranges from three months of interest for term lengths of one year or less all the way up to two years of interest for CD terms of seven to 10 years. 

    Like all CDs on this list, there are no monthly fees or opening fees. 

    Aside from CDs and credit cards, Discover also offers an online savings account and checking account.

    Ally Bank

    Best for bump rate CDs

    Key Features

    • No minimum deposit requirements
    • Interest compounds daily
    • 24/7 customer service

    With no minimum deposit requirements, Ally Bank CDs are a great option for new investors. You can also open a CD account in the name of a trust. In addition to several no-penalty CDs and high-yield CDs, Ally offers Raise Your Rate CDs, which give you the option to bump up your CD interest rate if the APY increases during the term without having to wait for the maturity date.

    Ally Bank

    Annual Percentage Yield (APY)

    2%-4.35%

    Term Length

    3 months to 5 years

    Minimum Deposit

    $0

    Additional Details

    Ally Bank, a popular online financial institution, offers a wide variety of online CD types and term lengths. Like many of their financial services, there’s no minimum deposit requirement to open a bank CD. 

    In addition to its standard high-yield CDs, Ally offers two bump-up CDs, or what the company calls Raise Your Rate CDs. 

    The APY is a little lower, but you can request one to two rate increases if Ally raises the rate for new CDs with the same term and balance tier as your CD. 

    That could be appealing as the Federal Reserve increases interest rates throughout 2023. 

    Ally also offers a no-penalty CD with an 11-month term and a 3.85% annual percentage yield. You can withdraw your full balance and interest any time beginning six days after you fund your account. 

    Ally is a full-service bank that boasts many financial products including an online savings account, checking account, investment account and more.

    Synchrony Bank

    Best for rate guarantee

    Key Features

    • 15-day rate guarantee
    • 9 term lengths
    • No minimum deposit requirement

    Synchrony Bank’s nine online CD term options coupled with a $0 minimum deposit make it ideal for short-term CD laddering. In addition to competitive CD interest rates, Synchrony Bank offers a 15-day rate guarantee — more generous than the 10-day guarantee offered by most banks and credit unions. During this time, you can claim the highest interest rate if the published rate increases.

    Synchrony Bank

    Annual Percentage Yield (APY)

    0.50%-2.6%

    Term Length

    3 months to 5 years

    Minimum Deposit

    $0

    Additional Details

    Synchrony Bank is a financial institution with nine different online CD term lengths ranging from three months to five years. It offers competitive rates on certificates of deposit, from 2.25% for a 3-month term to 4.60% APY for a 14-month term. 

    There is no minimum deposit requirement, and the company also offers IRA CDs. 

    Another perk: You get the option of withdrawing the interest earned before the CD’s maturity date without penalty. 

    Synchrony Bank offers a 15-day rate guarantee on any certificate of deposit, which is longer than the standard 10-day guarantee offered by most banks and credit unions. 

    During this time, you can claim the highest available fixed interest rate if the published rate increases. 

    Early withdrawal penalties are as follows: Loss of three months of interest for bank CD term lengths of one year or less, six months of interest for CDs with one- to four-year terms, and one year worth of interest for 5-year CDs. 

    Synchrony offers other useful tools for savers, including a money market account and a high-yield savings account. However, it doesn’t offer a checking account.

    Capital One

    Best for no minimum balance requirement

    Key Features

    • Easy to open
    • No minimum deposit
    • Competitive rates

    Capital One is another credit card company that offers CDs. There’s no minimum deposit and various term lengths are available. You can decide when your bank CD account interest is paid out — either at the end of the term, monthly or annually. If you withdraw money early, you’ll pay between three months to six months worth of interest, which is less than some other banks.

    Capital One

    Annual Percentage Yield (APY)

    3.30%-4.40%

    Term Length

    6 months to 5 years

    Minimum Deposit

    $0

    Additional Details

    Capital One’s $0 minimum deposit requirement and competitive rates on online CDs makes the company an attractive option, especially for customers who already bank with Capital One. 

    The company offers nine bank CD term lengths, from six months to five years. APYs range from 3.30% to 4.40%. 

    Early withdrawal penalties are lower than some other online banks and credit unions: Three months of interest for terms of one year or less and six months worth of interest for longer terms. 

    Aside from CDs and credit cards, Capital One offers checking accounts and savings accounts.

    PenFed Credit Union

    Best for mid-term CDs

    Key Features

    • High APYs for 18-month and 2-year terms
    • Competitive rates
    • Education Savings Certificates

    Pentagon Federal Credit Union offers money market certificates — the credit union equivalent of CDs — with high APYs. Its rates for 18-month and 2-year certificates are its highest rates, though early withdrawal penalties can be steep. The credit union also offers Education Savings Certificates. Like most credit unions, you must become a member of PenFed before you can buy a CD.

    PenFed Credit Union

    Annual Percentage Yield (APY)

    2% – 4.35%

    Term Length

    6 months to 7 years

    Minimum Deposit

    $1,000

    Additional Details

    Pentagon Federal Credit Union — PenFed for short — once exclusively served people affiliated with the military. In 2019, the credit union opened its services up to the general public. 

    PenFed’s money market certificates — the credit union equivalent of CDs — have terms ranging from six months to seven years with annual percentage yields from 2% to 4.35%. 

    The credit union really stands out for its 3% APY on a seven-year CD — the highest rate of any bank or credit union on this list. 

    PenFed’s $1,000 minimum deposit requirement is pretty standard for money market certificates with high APYs.

    Just to be clear on some credit union jargon: a money market certificate isn’t the same as a money market account. Yields earned on credit union accounts are called dividends instead of interest. 

    Early withdrawal penalties can be steep. The early withdrawal penalty for its 6-month certificates equals 90 days of dividends earned. 

    For all other certificate term dates, the early withdrawal penalty means losing one year of dividends or 30% of total dividends that would have been earned if the certificate reached its maturity date. 

    Aside from CDs, Pentagon Federal Credit Union offers a checking account that earns dividends as well as high-yield savings accounts.

    Bread Savings

    Best for high APYs

    Key Features

    • Above average APYs
    • Limited term length options
    • Interest accrued and compounded daily

    Bread Savings is an online bank formerly known as Comenity Direct. It offers five different CDs with term lengths ranging from one to five years. It fetches above average APYs but lacks shorter-term online CD options. CDs are offered through Comenity Capital Bank, which started using the Bread Savings name in April 2022.

    Bread Savings

    Annual Percentage Yield (APY)

    4.5%

    Term Length

    1 year to 5 years

    Minimum Deposit

    $1,500

    Additional Details

    Bread Savings offers competitive online CD rates of 4.50% for each of its terms, which range from one to five years. 

    It offers fewer term lengths than many of its competitors and its $1,500 minimum opening deposit is higher than most banks or credit unions on this list. 

    Early withdrawal penalties are as follows: Loss of five months of interest for 1- to 3-year CDs and loss of one year of interest for 4-year CD terms and longer. 

    Interest for Bread Savings CDs is compounded daily and credited on a monthly basis.

    Like most banks and credit unions on our list, this company offers a 10-day grace period once its term matures. During this grace period, you can cash out your certificate of deposit, renew it or change your term.

    Bread Savings also offers a high-yield savings account.

    Quontic Bank

    Best for 6-month CD rates

    Key Features

    • Above average 6-month CD rate
    • Easy to open
    • Online tools

    Quantic Bank offers CDs with term lengths ranging from six months to five years. Its six month interest rate is above average compared to other online banks and credit unions, which can make these CDs a good way to save for short-term goals. Its opening minimum balance of $500 is competitive with other big names in the industry, including Goldman Sachs.

    Quontic Bank

    Annual Percentage Yield (APY)

    3.50% – 4.45%

    Term Length

    6 months to 5 years

    Minimum Deposit

    $500

    Additional Details

    Quontic Bank offers everything you’d expect from a highly-rated online bank: competitive CD rates, innovative online tools and a user-friendly mobile app. 

    Quontic Bank really shines for its 6-month CD rates: 3.50% APY as of Jan. 18, 2023 — above average compared to other banks and credit unions. 

    In total, the company offers five different bank CD term lengths, from six months to five years. 

    Once a bank CD matures, Quontic gives you a 10-day grace period to withdraw funds. Otherwise, the online CD automatically renews. Early withdrawal penalties vary by CD term. 

    Quontic Bank offers a range of other financial products, including online savings accounts, checking accounts and money market accounts. 

    What Are CD Rates?

    A CD’s rate is how much interest you’ll earn on your initial deposit. A CD rate is expressed as an annual percentage yield (APY).

    CDs earn higher interest rates than traditional savings accounts, and may earn more than a high-yield savings account.

    ​​Online banks and credit unions tend to offer the best CD rates.

    Most CD rates are fixed: They won’t go up or down after you open your account.

    That can be great if you lock in a high rate because the bank can’t give you a lower rate down the road.

    On the other hand, a fixed rate can prevent you from earning more money on your deposit if rates later rise.

    Credit unions tend to have higher interest rates than banks, so CD rates will likely be higher at those institutions. However, a credit union can restrict membership, so make sure to check eligibility requirements first.

    The best CDs offer a competitive rate and APY. They also feature reasonable minimum deposit requirements and attractive compounding schedules.

    Are CD Rates Increasing in 2023?

    CD rates are increasing as the Federal Reserve embarks on a series of interest rate hikes to fight inflation. These federal actions are likely to result in the best CD interest rates we’ve seen in years.

    One-year CD rates on this list averaged 1.38% in April 2022. Now they’re averaging 4.25% in January 2023 — three times higher less than one year later.

    But before you rush to buy a CD, keep this in mind: Interest rates will likely be higher a year from now. It might make sense to wait for higher CD rates before locking your money up for a year or more.

    Or look for a bump-up or step-up CD that lets you take advantage of higher interest rates down the road.

    Banks and credit unions are always adjusting CD rates, so it’s important to shop around to find the best APY.

    What Are The Different Types Of CDs?

    Most CDs offer a fixed rate for a fixed duration — but that’s not always the case.

    Here are a few specialty CDs with unique terms.

    No-Penalty CDs

    These CDs — sometimes called liquid CDs — give you access to your money without an early withdrawal penalty. The catch? Terms usually require a higher opening deposit and earn a lower APY.

    Most financial institutions still impose some restrictions on no-penalty CDs. For example, you may not be able to withdraw money from a liquid CD penalty-free for at least a week after you open the account.

    Bump-Up CDs

    With this CD,  you can request a rate increase if interest rates rise during the CD term.

    For example, if you bought a 5-year CD, and after two years the bank or credit union increases the rate offered on that product, you can opt into that higher rate for the remaining three years of your term.

    You’ll likely earn a lower rate and need to put down a larger opening deposit. Most financial institutions with bump-up CDs limit you to one or two rate increases per term.

    Step-Up CDs

    These CDs include predictable rate increases at specified times throughout the term of the CD.

    Unlike a bump-up CD, the bank automatically increases your APY to the new, higher rate so you don’t need to ask the bank to let you opt into the higher rate.

    Jumbo CDs

    Jumbo CDs carry a high minimum balance requirement (think $100,000 and up).

    Surprisingly, you might not earn much more interest with a jumbo CD than you would with a traditional CD.

    Frequently Asked Questions

    CDs are considered a low-risk investment. 

    You’re guaranteed a specific fixed rate of return, so you assume less risk by placing your money in an FDIC-insured CD or NCUA-insured certificate.

    In this way, a CD is as safe as any other FDIC-insured account, like a money market account or a savings account.

    Most CDs have no monthly fees or ongoing costs. 

    However, taking money out of your CD before the maturity date usually results in an early withdrawal penalty. 

    Early withdrawal penalties vary based on the term of your online CD, but they typically equal the loss of 60 to 365 days worth of accrued interest earnings.

    The amount you pay to buy a CD generally is not taxable, even when you cash it in. However, you will be responsible for paying taxes on any interest you earned from the CD before it matured. This interest must be reported to the IRS as taxable income. 

    According to the IRS, interest is taxable in the year it is paid. 

    If your CD earns more than $10 of interest in a year, the bank or credit union should send you a 1099-INT statement. You can see how much interest you earned that year in box 1. 

    An IRA CD is simply an individual retirement account full of certificates of deposit. Many banks and credit unions offer IRA CDs.  

    You get the tax-advantages of an IRA along with the fixed term and rate of a certificate of deposit. 

    Some people choose to invest part of their retirement savings in an IRA CD to provide stable, dependable income in their portfolio.

    A CD ladder is a savings strategy where you stagger certificates of deposit with different maturity dates. It can help you take advantage of higher rates on longer-term CDs while still keeping some liquidity short-term. 

    Here’s an example of a CD ladder. 

    You split your deposit into fifths and spread it across multiple CDs: a one-year, two-year, three-year, four-year and five-year CD.

    When the one-year CD matures, you can pocket the interest and invest the initial amount in a five-year CD. You can do the same when the two-year CD matures a year later. Eventually, you will have five five-year certificates of deposit so one CD matures each year. 

    This helps make your money more accessible while still achieving the overall higher interest rate of a five-year CD versus a one-year CD.

    Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.


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

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  • LendingClub Bank Review 2023: Checking and Savings Accounts

    LendingClub Bank Review 2023: Checking and Savings Accounts

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    LendingClub is one of the more interesting online banks we’ve reviewed lately. First up — it is an online bank, which means no physical branches, though that’s not necessarily unusual anymore. What makes LendingClub Bank unique is that it’s the first proper mix of fintech and online banking.

    LendingClub Bank actually started life as Radius Bank in 1987 and transitioned to online-only banking in 2012, closing its brick-and-mortar locations. LendingClub is also a fintech — financial technology — company that offers personal loans online. In 2020, LendingClub acquired Radius and renamed it LendingClub Bank. This acquisition marked the first time a fintech company had purchased a U.S. bank, and the promise was that LendingClub Bank would be able to offer the best of both worlds.

    Today, LendingClub Bank offers an array of competitive online banking accounts and services, including a very compelling checking account option.

    Is LendingClub Bank right for you? Read on to find out.

    LendingClub Bank Checking Accounts

    LendingClub offers one of our favorite checking accounts right now: Rewards Checking. Unfortunately, if you don’t qualify for it, you don’t have many other options.

    LendingClub Rewards Checking

    Best for Earning Cash Back

    Key Features

    • No monthly fees or ATM fees
    • Ability to earn interest on checking account
    • 1.00% cash back on debit card purchases

    The LendingClub Bank Rewards Checking account is a unique checking account that enables you to earn both interest and cash back on purchases — provided you meet certain balance requirements.

    LendingClub Rewards Checking

    APY

    0.10% APY on balances between $2,500 and $99,999.99 and 0.15% APY on balances $100,000 and up.

    Monthly fees

    None

    ATM access

    37,000 ATMs with no charges

    Minimum starting balance

    $25

    More Information About LendingClub Checking

    The LendingClub Bank Rewards Checking account offers account holders a fee-free checking experience with a $25 minimum starting balance and no monthly minimum balance requirement. The account earns a reasonable interest rate of between 0.10% and 0.15% (depending on balance), which is a nice bonus that many checking accounts don’t offer.

    Even more interesting is the cash back available on this account — as long as you maintain an average balance of $2,500 or more each month, or receive at least that much in direct deposits each month, you can earn 1.00% cash back on your debit card purchases. While maintaining a $2,500 average balance may be a stretch for some, the direct deposit criteria is much more achievable and makes this a compelling checking account option.

    LendingClub Bank Savings Accounts

    LendingClub Bank’s single savings account option offers a very competitive interest rate, provided you meet the minimum balance requirement of $2,500. Below that, it’s less interesting.

    LendingClub High-Yield Savings

    Best for Fee-Free Savings

    Key Features

    • Up to 3.60% APY
    • No-fee ATM access
    • Low-starting balance

    The LendingClub High-Yield Savings account combines an extremely competitive interest rate with no monthly fee and a low starting balance. The result is a savings account that’s really hard to fault.

    LendingClub High-Yield Savings

    APY

    3.60% APY on all balances

    Monthly fees

    None

    ATM access

    37,000 ATMs with no charges

    Minimum starting balance

    $100

    More Information About LendingClub Savings

    The LendingClub High-Yield Savings account is frankly fantastic. The balance does not matter, you will earn an excellent 3.60% APY, and you only need a minimum deposit of $100 to get started. On top of that, you get a free ATM card with no fees, so your funds are easily accessible.

    Previously, the only real issue we spotted was that accounts with balances below $2,500 earned a much lower interest rate. That has since changed, with LendingClub’s High-Yield Savings Account now providing the same interest rate no matter the balance. That said, the more money you have saved, the more interest you earn, so here’s some smart savings strategies that will help you get that balance up in no time.

    Other LendingClub Bank Offerings

    LendingClub’s other offerings are fairly standard. There’s a CD option with a wide range of term lengths, as well as the expected array of personal loans. Most interesting are the personal finance options available through partnerships with other institutions.

    Certificates of Deposit (CDs)

    LendingClub Bank offers an array of CDs for longer-term investments. Terms run the gamut from 6 months to five years and offer interest rates of between 3.25% to 4.10% APY depending on the term.

    LendingClub CD Account

    Best for Medium-Term Savings

    Key Features

    • Moderate minimum balance
    • Great interest rates
    • Choice of term lengths

    The LendingClub CDs all offer different interest rates, depending on the term.The balance does not affect the rates as well, however the different CD accounts require a moderate minimum deposit amount of $2,500 all across the board.

    LendingClub CD Account

    APY

    : 3.25% for 6 months, 4.00% for 1 year, 4.05% for 18 months, and 4.10% for 2, 3, and 5 year CDs

    Monthly fees

    None

    Minimum starting balance

    $2,500

    More Information About LendingClub CDs

    CDs differ from standard savings accounts in a couple of ways:

    • A CD locks your funds into the account for the length of the term.
    • There is almost always a penalty for withdrawing funds early.
    • The interest rate on a CD account is fixed for the length of the term.

    For these reasons, they don’t necessarily make the best general-purpose savings accounts. They’re better-suited to situations where you know your money will have time to mature and earn.

    The LendingClub CD options are decent, though we think they’d be best as an additional savings account if you’re already using LendingClub Bank, rather than as a standalone product.

    Personal Loans

    LendingClub also offers personal loans — in fact, that’s how the company got its name. LendingClub offers loans up to $40,000 for credit card consolidation, balance transfers, debt consolidation, and more. The rates are fixed, and funding can be available in just a few days. Additionally, they now provide small business loans between $5,000 and $500,000 thanks to partnering with Accion Opportunity Fund.

    If you’re already using LendingClub Bank and need to take out a personal loan, it may make sense to keep things under one roof. At any rate, it certainly doesn’t hurt to have the option.

    Mobile Banking

    The mobile experience is important with any bank, but for online banks it can make or break the experience. We’re happy to report that LendingClub Bank’s suite of apps is outstanding.

    The standard mobile app is easy to use and offers all the features you’d expect, including:

    • Check deposits.
    • Available balances.
    • Transaction history and search.
    • Fund transfers.

    There are also features available to help you better manage your finances, set a budget, and keep track of trends in your income or spending. Finally, the LendingClub Marketplace is a tool built into the app that helps customers find financial products from LendingClub partners, including life insurance, student loan refinancing, and more.

    LendingClub Bank Review: The Pros and Cons

    Wondering if LendingClub Bank is right for you? Our list of pros and cons could help you decide.


    Pros

    • Earn cash back with the Rewards Checking account — 1.00% on all debit card purchases, provided you meet the minimum balance requirement.
    • Highly competitive interest rate on the High-Yield Savings account (with a reasonable minimum balance).
    • No monthly fees on any accounts.
    • No ATM fees at in-network ATMs, and ATM fee rebates for any out-of-network fees incurred, which helps offset the lack of branches.
    • Excellent mobile app and 24/7 online access.


    Cons

    • No physical branch locations, like most online banks.
    • CDs have a moderately high minimum balance to open ($2500 across the board).
    • No IRAs or other savings options beyond the High-Yield Savings and CD accounts.
    • The High-Yield Savings account is less attractive if your minimum balance dips below $2,500.

    Frequently Asked Questions (FAQs) About LendingClub Bank

    Have questions about LendingClub Bank? We have answers.

    Is LendingClub Legitimate?

    Absolutely! LendingClub has built a solid reputation for its online personal loan products. The company has reasonable requirements for new accounts and loan applications, and is transparent with fees and other charges. In our searching, we couldn’t find anything that threw up any red flags. Additionally, LendingClub Bank was originally Radius Bank, which was a regulated, brick and mortar bank.

    Is LendingClub FDIC Insured?

    Yes, LendingClub is an FDIC insured online bank. That means that any money you deposit with LendingClub is insured for up to $250,000 per depositor. This is important in the event that the bank fails for any reason, as it prevents the money in your checking or savings account from disappearing due to no fault of your own.

    What is the History of LendingClub Bank?

    LendingClub Bank started life as Radius Bank in 1987 and transitioned to online-only banking in 2012, closing its brick-and-mortar locations. LendingClub is also a fintech — financial technology — company that offers personal loans online. In 2020, LendingClub acquired Radius and renamed it LendingClub Bank. This acquisition marked the first time a fintech company had purchased a U.S. bank.

    Penny Hoarder contributor Dave Schafer has been writing professionally for nearly a decade, covering topics ranging from personal finance to software and consumer tech. Freelancer Dennis Lynch contributed to this report. 


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  • 5 Simple SEO Strategies to Improve Your Rankings

    5 Simple SEO Strategies to Improve Your Rankings

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    Opinions expressed by Entrepreneur contributors are their own.

    Search engine optimization (SEO) affects your website’s visibility online. Good SEO means more page traffic and higher chances of selling your products and services to a broader audience. No matter how great your products are or how well-designed your website is, without an SEO strategy, your chances of ranking on Google or any other search engine are slim.

    How important is SEO?

    Sure, you’re already making other marketing efforts to lead your audience to your website. You’re spending on ads and perhaps partnering with content creators to post links to your page. But that’s not enough.

    If you’re getting traffic from other sources, that’s great! But did you know that organic search is five times more valuable than Google ads? This is because over 90% of website traffic comes from search engines.

    Users who land on your page from a search engine have higher chances of converting because they specifically searched for your brand, products, or services. On the flip side, someone who ended up on your page after coming across your ad may not have had any prior intentions to check out your website.

    Unlike organic search, that’s intentional, paid marketing efforts may disrupt someone’s experience. Besides, any website that’s too deep into the Google search page may lose its credibility.

    Related: 7 Reasons Why SEO Matters for Every Startup

    What is an SEO strategy?

    An SEO strategy improves your website’s search engine ranking to improve your organic traffic. A complete SEO strategy should tackle three types of SEO:

    • On-page SEO: Focuses on content that’s on your website and ensures that it addresses your specific search query. Some critical factors that affect on-site SEO are content quality and uniqueness.
    • Off-page SEO: Focuses on strategies done outside your website to improve its credibility and ranking. Link-building is the backbone of off-page SEO strategies.
    • Technical SEO: Technical SEO deals with the backend aspects of your website to help increase your ranking. Good technical SEO means your page load time is fast, all your pages work, and it has structured data.

    Related: This Is What Makes SEO Important For Every Business

    Easy SEO strategies to improve your ranking:

    1. Content is everything

    While Google has made significant changes in its algorithm in the past year, content has long been a priority. Consistent publication of engaging content is the number one factor that affects your ranking. This means your website shouldn’t just have a bunch of keywords, but you should also produce high-quality content that’s unique and provides value to your readers.

    Google looks at the quality of your copy — beyond any SEO technique. You have to go beyond regular calls to action and stand out from other similar pages.

    If you have an e-commerce business, creating a blog to supplement your main page can answer your audience’s questions and help you rank higher on search engines.

    One of the factors that Google looks at is whether your content is up to date. Updating your website with fresh content with a blog will be much simpler. Plus, a blog can help you reach a broader range of search queries and increase the average visit duration.

    There has been debate on the ideal length of a blog, but according to a HubSpot study from 2021, the ideal blog post length for SEO should be 2,100-2,400 words.

    2. Make a list of keywords

    Keywords are no longer the essence of an SEO strategy but are still essential in optimizing your page. Use a keyword search tool to help you find a list of keywords related to your niche.

    If you’re a new business, targeting low-competition keywords would be a good idea for a higher chance of ranking, and getting more organic traffic to your website would be a good idea. Of course, these keywords have to make sense for the type of content on your page.

    3. Know what your audience is searching for

    Many will make the mistake of creating content to increase page rankings — this technique will backfire. Ultimately, you’ll have a page filled with keywords that aren’t relevant to your business. Consider creating an accurate buyer persona to understand what your audience wants. After that, you’ll know what motivates your audience and what content can address their needs.

    4. Build high-quality links

    A backlink is when another website links to yours. It is one of the most significant factors that affect your ranking and is a great way to get organic page visits. This means you can’t rank with on-page efforts alone.

    Top websites may get backlinks organically, and building connections with reputable websites is essential. One of the best ways to get backlinks is by sending a genuine outreach email to websites you have linked to.

    Email blasts do work but are becoming less effective as many marketers have overused them. That said, there are plenty of resources on the web to get your creative juices flowing and develop creative ideas to set up an outreach campaign. Make sure that if you do conduct an outreach campaign, you are polite and genuine and always try to provide value first.

    5. Don’t upload large files to your page

    Images and videos undoubtedly add value to your content and can help attract more visitors to your page. However, these files can be large and, as a result, affect your page’s load time.

    Page load time is one of the factors that affect your page’s ranking, and it also affects your mobile friendliness. Look at these factors and what managers can do to stay on top of them.

    Many plugins and tools can help you reduce your file size without losing quality. Never upload high-resolution images. As a best practice, stay within 500 KB.

    Related: 10 Essential SEO Strategies For Entrepreneurs to Increase Their Traffic

    Summing up

    Like any business strategy, it will take time to see results. And instead of reaching for the stars, always make your SEO goals more specific to address your business needs. This way, it will be easier to track and measure your progress.

    Since the algorithm is constantly changing, you also have to stay up to date with the latest changes to ensure that you’re familiar with the best practices.

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    Nick Brogden

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  • Citibank Review 2023: Checking and Savings Accounts

    Citibank Review 2023: Checking and Savings Accounts

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    As one of the largest banks in the world, Citibank has a lot to offer its customers — from useful online features to thousands of free ATMs. It’s also a global bank, with thousands of overseas branches to complement the 700+ in the United States. That gives Citi a definite edge over online banks that have no local presence at all.

    That said, Citibank falls short in a few areas — namely, the interest rates on some of its accounts are less than stellar. Additionally, Citi has been heavy on the monthly fees, and while there are ways to waive them, we’d prefer to not deal with them at all.

    In February 2022, Citibank became the largest bank in the country to announce it was dumping all overdraft fees, returned item fees and overdraft protection fees by summer 2022.

    At the end of the day, Citi is a solid bank that gets a lot right. But is a Citibank account right for you? Read on to find out.

    Citibank Checking Accounts

    Citi offers a variety of checking account options, ranging from basic digital accounts to high-yield interest checking. There are also several premium tiers available.

    Citi Basic Banking

    Best for Everyday Checking Needs

    Key Features

    • Multiple tiers of checking accounts available
    • No minimum starting balance
    • Earn interest on checking account balance

    Citi’s basic checking account, the aptly named Basic Banking Package, offers everything you’d expect from a standard checking account. It’s a no-frills option that makes a fantastic starter account. All overdraft fees, returned item fees and overdraft protection fees have been eliminated.

    Citi Basic Banking

    Monthly fees

    $12 (can be waived)

    ATM fee

    2.50 for non-Citi ATMs (can be waived if account holder is over 62 years old)

    Minimum starting balance

    None

    APY

    n/a

    More About Citi Basic Checking Accounts

    Citibank offers multiple checking account options. While you can open one up by itself, most of the Citi accounts make more sense when opened as part of a package. These packages include a linked savings account and a handful of other perks, and we recommend going this route if you choose to bank with Citi.

    There are three Everyday Banking packages and three Premium Banking packages available.

    Everyday Banking:

    • Access Account Package
    • Basic Banking Package
    • The Citibank Account Package

    Premium Banking:

    • Citi Priority Account Package
    • Citigold Account Package
    • Citigold Private Client

    Most of the Citi checking account packages have a monthly fee, and in some cases it’s rather steep. However, there’s nearly always a simple way to waive that fee. For example, the Basic Banking Package has a $12 monthly service fee, but you can waive it in a number of ways:

    • Make one qualifying direct deposit and one qualifying bill payment each statement period.
    • Maintain a combined average of $1,500 in eligible linked accounts.
    • The first-listed account owner is over 62 years old and opened their account before July 18th, 2022.
    • It’s a joint account that includes a minor and the account was opened before July 18th, 2022.

    Every account has at least one way to waive the monthly service fee, even if it’s just maintaining a certain minimum balance. That said, we’d still prefer no fees at all — which many of Citi’s competitors offer.

    It’s also worth noting that the Access Account package doesn’t have an option for paper checks. If you need to write checks, you’ll have to go with a different Citibank account.

    Speaking of all the account options — normally, we’re not a fan of too many choices. However, the various Citi checking accounts offer a reasonable progression from basic starter accounts through to the premium offerings, and it’s relatively clear when you’d choose which account. In this case, we’d actually say the variety works in Citi’s favor.

    Citibank Savings Accounts

    Unlike the checking account variety, Citi really only offers a single savings account option: Citi Accelerate Savings. However, this account is actually an outstanding option with a very competitive interest rate — you really don’t need much more.

    Citi Accelerate Savings

    Best for High-Yield Savings

    Key Features

    • Excellent interest rate — up to 3.40% APY
    • No minimum opening balance required
    • Multiple ways to waive monthly fees

    The Citi Accelerate Savings account offers a competitive 3.40% APY, making it an attractive option for anyone looking to keep their checking and savings accounts under one roof.

    Citi Accelerate Savings

    APY

    3.40%

    Monthly fees

    Starts at $4.50, but can be waived

    ATM access

    2,300 Citibank ATMS; 60,000 others fee free

    Minimum starting balance

    None

    More About Citi Accelerate Savings Accounts

    A Citi savings account makes an excellent companion to one of the Citi checking accounts. The 3.40% APY rate is quite good, and there really aren’t any fees attached to the account — it’s generally very easy to meet the requirements to waive the monthly service fee.

    Add in the benefits of a Citi banking package to your Citi savings account, plus the huge nationwide ATM network, and you’ve got a solid savings account option that’s easy to recommend. That said, if you’re only looking for a savings account, we think you can probably do better with another bank.

    Other Citibank Offerings

    Being a large global financial institution, Citibank offers a variety of other products besides checking and savings accounts. These include CDs, IRAs, and a variety of small business offerings.

    Certificates of Deposit (CDs)

    Certificates of Deposit accounts, or CDs, are a specific type of savings account that has a fixed interest rate and fixed terms. In practice, this means that CDs are safe investments, but that once your money is in one, you can’t access it (without penalties) until those terms are up. They’re ideal for holding money that you know you want to save for a certain date, or for a safe and guaranteed return on investment without much risk.

    Citibank offers an array of CD accounts to meet your longer-term savings goals. There are three choices: a Fixed Rate CD, a Step-Up CD, and a No Penalty CD.

    Citibank Fixed Rate CD

    Best for Safe Investments

    Key Features

    • Variety of term lengths available
    • Stable interest rates that won’t change on you
    • Low minimum starting deposit

    The Citibank Fixed Rate CD is Citi’s version of a “standard” CD account. It offers a range of term lengths and interest rates for those wanting to save with purpose.

    Citibank Fixed Rate CD

    APY

    Up to 4.15%

    Term length

    3 months to 5 years

    Minimum starting balance

    $500

    More About Citi Fixed Rate CD

    The Citi CD accounts offer a solid option for people that have specific savings goals in mind. The Fixed Rate CD is a standard CD account and offers a range of terms and interest rates, from 3 months to 5 years.

    The Step-Up CD is a slightly different option to most CDs. This account is on a 30-month term and the interest rate increases every 10 months over that term, from 0.05% to 0.15% APY.

    Finally, Citibank offers a No Penalty CD, which is a little more flexible than a typical CD account. The No Penalty CD has a 12-month term and enables you to withdraw your full balance without the usual penalties associated with a CD account. As a tradeoff, the interest rate on the No Penalty CD is fixed at 3.40% APY.

    Other Citibank Features

    Citibank’s size also helps make available a full-slate of banking features. Here are two that you would expect to have at a large bank. And when it comes to mobile banking, any bank really.

    Credit Cards

    Citi offers a wide variety of credit cards, from travel and rewards-based cards to cash back and business. Interest rates and cash back amounts are pretty standard for bank-issued credit cards. In other words, expect around 17%–29% interest and around 2% cash back for the best options. These cards make good options for people that want to keep all their accounts under one roof.

    Loans

    Citi also offers a number of loan products, including small business loans, home loans, and personal lines of credit. Personal loans are limited to a max of $30,000 and offer repayment terms of one to five years. Like the credit card products, these are nice if you need a little extra cash and want to keep everything in the same financial institution. There’s nothing inherently special about them compared to offerings from other banks, though.

    IRAs

    If you prefer a more long-term option for saving — say, to fund your retirement — Citi offers Individual Retirement Accounts (IRAs) with no annual fees. IRA stands for Individual Retirement Account, and it’s a type of long-term savings and investment account that is intended specifically for retirement savings.

    Citi’s IRA options include both traditional IRAs and Roth IRAs, and the accounts earn between 0.05% and 4.97% APY, depending on the type of IRA you choose. Options include an Insured Money Market account, Variable CD, and Day-to-Day Savings accounts.

    Generally, the money market account is going to be the best option for a long-term retirement account like this. A money market account won’t earn as high of an interest rate as a CD, but you can leave the money in the account much longer, so it will accrue much more over time.

    Mobile Banking

    The Citibank mobile app is extremely well-rated. It offers all the expected features of an online banking mobile app, from account management and check deposits to customer service and even a place to view your FICO credit score.

    While there’s not necessarily anything groundbreaking about the app, it’s easy to use and well-designed. That means it excels at exactly what you’d want your banking app to do. Combined with physical branches, this makes Citibank a very convenient option for personal banking.

    As for online banking, you can do everything you’d expect using Citi’s website, from transfers to paying bills. Plus, unlike even the best online banks, Citi actually has physical locations, so you can go get cash in hand if you need.

    Pros and Cons About Citibank

    Below is a list of pros and cons about Citibank to help you decide if this bank is right for you.


    Pros

    • Lots of choices for checking accounts. It’s very easy to find one that matches your personal financial needs.
    • A high-yield savings account with an excellent interest rate. The Citi Accelerate Savings account is a fantastic Citibank account option for standard savings.
    • Useful packages that combine checking and savings accounts. These packages help reduce fees and costs and simplify the banking experience.
    • Large network of ATMs — thousands are available nationwide, and you can also use any out-of-network ATM for a small fee.
    • Unique CD account options — the Step-Up CD and No Penalty CD are available in addition to the standard Fixed Rate CD.
    • All overdraft fees, returned item fees and overdraft protection fees were eliminated in summer 2022.


    Cons

    • High monthly fees. While most accounts have a method to waive the fees, they are almost universally higher than other banks.
    • Less than one thousand physical locations in the United States. This will either be a non-issue or a deal-breaker, depending on where you stand.
    • Interest rates are middle-of-the-road at best. CD accounts, in particular, earn lacklustre interest compared to many competitors.

    Frequently Asked Questions (FAQs) About Citibank

    Have questions about Citibank? We have answers.

    Is Citibank FDIC Insured?

    Yes. Every Citibank account, including checking, savings, and CD accounts, are FDIC insured. What that means is that each account is automatically insured for up to $250,000 per depositor. This is meant to protect your money in the event the bank fails — you won’t lose the funds you’ve deposited in a Citibank account.

    Citibank is owned by Citigroup, Inc. Citigroup is a global financial services company that serves over 200 million customers around the world.

    Citibank is a reputable bank with a number of positives going for it. It offers a number of packages that combine checking and savings accounts into an easy-to-manage bundle, and the combined balance contributes to the threshold to waive monthly service fees. Plus, the Citi savings account interest rates are excellent.

    Citibank isn’t perfect, of course — the interest rates are middle-of-the-road, and there aren’t as many local branches in the U.S. as some of its competitors. However, if you wan

    Does Citibank Offer a Credit Card?

    Yes, Citibank offers several different credit card accounts in addition to the usual bank options. Citibank credit card options include cash back rewards cards to balance transfer and low-interest options.

    Penny Hoarder contributor Dave Schafer has been writing professionally for nearly a decade, covering topics ranging from personal finance to software and consumer tech.


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  • How to Get a Share of a $2M 1940 Batman Comic Book

    How to Get a Share of a $2M 1940 Batman Comic Book

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    Ever wanted to cash in on nostalgia?

    Vintage and cultural collectibles have long been a pastime and earning opportunity for hobbyists and folks with quirky interests and cash to spare. In recent years, collectibles have become an attractive asset class for creative investors, as well.

    But it’s always been a tough market to break into — collectibles tend to be pricy to acquire because of the resources needed to find and store them, on top of their high asking prices.

    Now anyone can take advantage of alternative investments through an app called Rally Rd., which lets you buy and sell shares of everything from Pokemon cards to Ford Mustangs to even shares of a first edition 1940 DC Comics Batman comic book. These days, the app is going by just Rally, though Rally Rd. is the official name.

    Rally Rd. Investment App

    Best for Active Traders

    Key Features

    • Commission-free alternative investing
    • Buy shares of collectible assets and NFTs
    • Live secondary trading

    Rally is an app that lets you buy shares in alternative assets like comic books, cars, trading cards and other collectibles. Through the app, you can browse collections and see each asset’s value, share price and number of shares, plus specs about what makes it valuable. You can invest with no commissions and no hidden fees, then sell shares or buy more through registered brokers.

    Rally Rd. Investment App

    Opening an account

    $0

    When assets can be resold

    Five days after purchase

    Fees

    No commissions or fees

    Trading times

    Monday through Friday, excluding standard stock market holidays, from 10:30 a.m. to 4:30 p.m. eastern time.

    What Is the Rally Investment App?

    Rally is a platform for the web, iOS and Android that lets you buy and sell equity shares of collectible items, including sports memorabilia, books, comics, classic cars, NFTs — even Pokemon cards.

    Launched in 2016 as Rally Rd., the app initially focused on buying and selling equity shares in classic cars and has since expanded to offer collectibles from wine to guitars.

    Buying and trading collectibles is a way to add diversity to your investment portfolio and operate outside of the fluctuations of public stock exchanges. By trading equity shares through an app like Rally, you may be able to tap into this market with significantly less risk, because investments are SEC-regulated and you don’t have to put up as much money to get started.

    Collectibles tend to act differently than the stock market, so they’re attractive for active investors during times of market volatility, inflation or recession. However, collectibles — by definition — tend to be rare or one-of-a-kind assets, so it’s difficult to determine trends in their value and safely predict whether they’ll make or lose money.

    How Does Rally Work?

    Rally acquires collectible assets and makes them available for investors and traders through the app.

    You don’t have to scour auctions to nab rare finds or fork over thousands of dollars to own valuable collectibles. Rally handles sourcing, authentication and acquisition from collections around the world. It securitizes the assets and splits them into equity shares, so you can incorporate these collectibles into your portfolio for just a few dollars a share.

    You can also sell your shares to other buyers through live trading in the app by making them available with partner broker-dealers. Other buyers can place bids, and the app’s algorithm matches your offer with the best deal to sell your share.

    Rally occasionally sells assets, and you’ll get paid for your shares if that happens. But, in general, Rally holds onto assets for the long term, and your best way to make money through the app is through live trading.

    Your investments through Rally are funded by a connected bank account, and you can withdraw earnings into the same account anytime.

    3 Steps to Investing With Rally

    1. Create an account through the iOS or Android app or online.
    2. Invest in an asset during its initial offering and/or make bids on the secondary market.
    3. List your shares for sale as “ASKs” to be matched with buyers.

    Rally requires active trading, so it’s not a good fit if you’re looking for an automated or passive investment app. It doesn’t include options to automate deposits or investments, so this isn’t a set-it-and-forget-it platform for your long-term savings.

    How Rally Invests Your Money

    Rally sources assets poised to rise in value by considering rarity, significance, history, originality, value, condition and other data-driven factors. It doesn’t lean on any single aesthetic but instead purchases a variety of collectibles to offer assets that’ll appeal to various tastes and financial goals.

    Through the app, you’re in control of where your money goes and when to buy or sell assets.

    You can invest in an assets initial offering or make bids to purchase shares on the secondary market 90 days or more after an initial offering. You don’t have to wait for Rally to sell an asset; you can cash in or reduce your exposure anytime by listing your shares for sale through an ask.

    Rally Fees

    Rally doesn’t charge commissions on trades or management fees on your holdings in the app. Instead, it makes money by taking a sourcing fee that’s included in an asset’s initial offering price — which means no additional fees for you. You’ll be aware of the sourcing fee for any offering you invest in, but you won’t pay a fee on top of your investment price.

    Rally Customer Service

    You can contact Rally anytime via email at [email protected] or via text at 347-952-8058. You might also get your questions answered by browsing  the platform’s FAQ page.

    Pros and Cons


    Pros

    • Diversify your portfolio with alternative investments in collectibles.
    • Benefit from valuable collectibles without the huge upfront cost or work.
    • No commissions on trades or account management fees.


    Cons

    • No automated investment opportunities.
    • The company doesn’t sell assets; you earn primarily through active trading.
    • Investing in real assets comes with inherent risk.

    Frequently Asked Questions (FAQs) About Rally

    There are a lot of questions about this interesting investment app and we’ve got the answers to the most commonly asked questions.

    Is Rally Rd. a Good Investment?

    Rally lets you invest in collectible assets, from classic cars to trading cards. The company doesn’t make any claims about returns you can expect by trading on the app, and investing in real assets comes with unique risks you won’t face in the stock market. However, it can add diversity to your portfolio and reduce your exposure to the volatility of the stock market during times of recession or inflation that could hurt traditional investments.

    Rally is an investment platform where you can buy, sell and trade equity shares of collectible assets, like classic cars, wine, trading cards and comic books. The company’s purpose is to source collectibles and facilitate trading by securitizing and splitting assets into equity shares you can buy and sell on its platform. It carries similar risk to any collectible investing, but you can mitigate risk by spreading your investments across assets instead of betting a lot on a single item.

    Can You Make Money on the Rally App?

    Investing of any kind comes with the possibility of earning money and the risk of losing money. Rally facilitates trading so you can invest in initial offerings of collectible assets and sell or buy more on the secondary market through the platform. You earn money by selling shares worth more than you paid for them; Rally doesn’t typically liquidate assets in the short term.

    How Do You Trade on Rally?

    In the app, you can buy and sell shares of collectibles that Rally has acquired. Anyone can purchase shares during an asset’s initial offering. After 90 days, sellers can make those shares available through “ASKs,” and buyers can place a “BID” for assets they want to purchase. The app matches sellers and buyers and executes sales daily.

    Contributor Dana Miranda is a Certified Educator in Personal Finance® who has written about work and money for publications including Forbes, The New York Times, CNBC, Insider, NextAdvisor and Inc. Magazine. Freelancer Larissa Runkle contributed to this report. 


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

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  • These 5 Sites Will Let You Sell Gift Cards Online to Make Extra Cash

    These 5 Sites Will Let You Sell Gift Cards Online to Make Extra Cash

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    Ah, gift cards: The go-to present from someone who has good intentions, but doesn’t know you well enough to get you something you’d actually like.

    This holiday season, you’re likely to end up with a stack of them — some of which you probably can’t use or don’t want.

    Maybe your boss gave you a Starbucks gift card, but you aren’t a coffee drinker. Or your Aunt Rita gave you a generous $75 for a steakhouse, but you’re a vegetarian.

    There is no reason for the gift to go to waste. Instead of letting them languish in a junk drawer or unopened email somewhere, sell those gift cards for cash.

    5 Best Places to Sell Gift Cards for Cash and Discounts

    Ready to start selling gift cards? Start with these five sites.

    1. CardCash

    Founded in 2009, CardCash is a no-frills marketplace to buy and sell gift cards. It accepts cards from more than 1,100 different retailers — all types of popular department stores, restaurants, grocers and more. While the website states that you can earn up to 92% of a gift card’s value, each card is given a unique quote that could be lower. CardCash pays you directly if your card is accepted.

    Use CardCash’s quote tool to see how much cash your gift card is worth and to find out if you need to physically mail it in. You also have the option to swap the gift card for one at another store, possibly exceeding the value of your current gift card. Gift cards must have a balance of at least $10.

    Get started: www.cardcash.com

    2. ClipKard

    According to its website, ClipKard accepts physical gift cards from more than 100 retailers – including partially used ones. Fast food restaurants and department stores are especially popular.

    ClipKard’s quote tool will let you know if your card is currently being accepted and, if so, how much it’s worth in cash. If you like the quote, you can ship your gift card to ClipKard using the prepaid USPS shipping label provided to you. If you’re in a rush, you can choose to upgrade to priority shipping, and the price will be deducted from your payout.

    If you don’t see your gift card brand on the list, you can email [email protected] for an evaluation. All cards must have a value of at least $15.

    Get started: www.clipkard.com

    3. Gameflip

    Gameflip is a unique way to get rid of your unwanted digital gift cards and other items. The e-commerce site is a blend of eBay and Upwork for gamers. When selling gift cards, like any other product or service on the site, you’ll have to make a listing, which requires you to first make a Gameflip profile.

    You can sell any unused prepaid and non-reloadable gift card for gaming platforms or other retailers. Popular gift cards include Steam, PlayStation, Xbox, iTunes, Google Play and more. With Gameflip, you have full control over the price, though it’s recommended you list your card at a discount of 2% to 15% of its value.

    When someone buys your gift card, Gameflip transfers the funds into your Gameflip wallet, which you can withdraw from using Wise, Payoneer, Skrill or Bitcoin. (PayPal is no longer supported.) Gameflip takes an 8% cut of all listings and a further 2% cut of digital-only listings. Each wallet withdrawal method has its own associated fees.

    Get started: www.gameflip.com

    4. GiftCash

    GiftCash is a straightforward way to sell digital and physical gift cards from more than 150 accepted brands. And you can earn up to 92% of the value for in-demand brands.

    As with other gift card exchange sites, you can get a quote from GiftCash before you choose to sell it. However, GiftCash does not allow gift-card swapping.

    All gift cards must have a value of at least $25. Some brands require a higher minimum value, such as $100 for Air Canada, Apple, iTunes and Petco. Maximum value for all gift cards is $2,000.

    Get started: www.giftcash.com

    5. Raise

    Raise is a mobile payment app and e-commerce platform launched in 2013. Among many things, Raise allows you to sell your unwanted gift cards with a balance of at least $5 on its marketplace. That means you’ll need to create a Raise account and a listing for your gift card.

    As with any product, the more demand, the more you can ask for it. Gift cards for major retailers like Walmart, Target and Best Buy tend to sell on the marketplace for about 95% of their value.

    You also maintain control over your listing. If your card doesn’t sell in the first couple of days, you can always adjust the price to attract more buyers. Or you can unlist it if you change your mind. Once it sells, Raise charges a 15% seller fee, and for physical cards, it charges an additional $2.75 or 1% fee for shipping — whichever is greater.

    If you lost track, that means the maximum you can earn on a digital gift card is 85% of its value, if it sells for 100% of its value.

    Get started: www.raise.com

    To help you determine the best place to sell your unwanted gift cards, we’ve compared several price estimates from popular stores in fall 2022. Here’s how the five gift-card sites stack up.

    How Much Cash Your Gift Cards Could Earn

    Sites $25 Walmart Gift Card $25 Target Gift Card $25 Starbucks Gift Card
    CardCash $21.50 $21.13 $19.75 GET DETAILS
    ClipKard $17.84 $17.33 $15.29 GET DETAILS
    Gameflip* $22.50 $20.61 $14.40 GET DETAILS
    GiftCash $21.00 $20.75 $17.50 GET DETAILS
    Raise* $21.25 $20.82 $20.30 GET DETAILS

    *Note: Estimated exchange prices for Gameflip were based on the rates of digital gift cards currently listed and selling on their marketplace, minus the applicable 10% seller fee.

    Tips to Sell Gift Cards Online

    There are plenty of websites to sell your gift cards, and each one is a little different. Some will let users bid on your gift card, while others will purchase it from you and then sell it themselves.

    Here’s what to keep in mind as you find a buyer for that unwanted present.

    Consider Ways to Get Paid

    Depending on the service you choose, when you sell a gift card, you can receive a check in the mail, a PayPal or other digital payment, or a more useful gift card.

    Payment apps might be quick, but keep those pesky transaction fees in mind if you want to maximize your payout. Checks may take a little longer, but they’re as good as cold, hard cash. And depending on your spending habits, another gift card might be the best choice, as the conversion rate is going to be the highest.

    Each selection has its own perks, so choose whichever best fits your needs.

    Don’t Sell Gift Cards on eBay

    EBay has always been a popular place for buying and selling things online — but it might be the worst way to sell gift cards.

    First, an eBay buyer isn’t likely to buy your gift card for more than 80% to 90% of its value. For a $100 gift card, you can count on a loss of between $10 and $20 right off the bat.

    On top of that, you may be responsible for eBay’s insertion fees, a final value fee and a performance fee if your eBay seller account isn’t in good shape. These fees eat further into your earnings.

    You may be thinking, hey, don’t Raise and Gameflip also have seller fees? They do. But these marketplaces specialize in selling gift cards, so the base value of your gift card is likely to be higher on Raise or Gameflip than on eBay. Also with eBay, there’s no built-in way to verify your gift card’s code or balance — making the selling and shipment process much more of a hassle.

    In short, stick with one of the five gift-card selling websites above to get the most money for that well-meaning Applebee’s gift card that will fuse together with your wallet before you ever use it.

    Frequently Asked Questions (FAQs) About Selling Gift Cards Online

    Here are our answers to some common questions about selling gift cards online.

    How Can I Exchange Gift Cards for Cash?

    You can exchange gift cards for cash easily by selling the unused card directly to a gift card site like CardCash, CardKlip or GiftCash. They will buy the card from you directly. Or you could list your gift card on marketplaces like Gameflip or Raise, where people can bid on your card and buy it from you. You’ll give up a little bit of the gift card’s value, but you’ll have money you can use anywhere.

    How Can I Get Cash for Gift Cards Immediately?

    When you sell your gift cards online, it’s possible to get a quote immediately. That is, you can easily and quickly check how much your gift card is worth. But the entire process of selling the gift card online will take much longer, especially if you have to mail a physical card.

    One option for faster cash is through GiftCardBin, which partners with more than 600 businesses nationwide to buy gift cards — in person. Use its store locator tool to see if a partner is nearby. Then you can sell your gift cards for fast cash. However, you should expect a quote much lower than the online exchanges.

    Where Can I Sell Unused Gift Cards?

    You can sell gift cards for cash online and in person. Selling your gift card in person is the fastest way to get cash, but it’s not the most lucrative. GiftCardBin has hundreds of partners around the U.S. that offer cash for gift cards at a steep discount. The slower and more lucrative way to sell gift cards is online, and you can earn up to 95% of the gift card’s value in cash by using one of the gift card exchanges mentioned above.

    How Much Do You Get for Gift Cards at Coinstar?

    Coinstar discontinued its gift-card-buying services at all Coinstar terminals. However, if you’re using Coinstar to count your change, you can maximize your payout by choosing to accept payment by gift card. This option allows you to skirt the fees associated with cash payout.

    Adam Hardy is a former staff writer for The Penny Hoarder. Freelancers Dana Miranda and Cassidy Alexander contributed to this report.


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    hardyjournalism@gmail.com (Adam Hardy)

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