By Craig Ford9 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited July 22, 2014.
What The Government Can Teach You About Personal Finances
When it comes to the government and money there are a lot of diverse opinions. No matter what you think about the government’s fiscal responsibility, one thing is for certain. Many Americans could learn at least one lesson from the government that will transform their personal finances.
What the Government Knows About Taxes
In the book, The Automatic Millionaire, David Bach spurs the question, How does the government always get their taxes?
The government takes their tax payments off the top before you even have access to it. This is true unless you are self employed and the government then requires you to make a quarterly tax payment.
The government wants to have access to the money first. They don’t trust you with the money because you might just blow it all before you get it. So they make you to complete a W-4 and they take their money before you get your money.
Sometimes we even get generous and pay more income tax than we should.
Do you trust yourself with money? If the government takes taxes out as soon as you get paid and you have paid all your taxes, don’t you think that would be a good strategy for saving?
Almost every banks and investment broker have some automatic savings features.
6 Advantages of Automatic Savings
Simplicity – Many great financial plans fail because they are too complicated. It is far better to have a financial plan that works than one that just looks good on paper. If you are not disciplined enough to maintain the plan, it is too complicated. As an example, many people fail at budgeting because the budget is too complex. A simple budget is the solution.
Compensates for a lack of discipline – Many people acknowledge that saving money requires discipline. Discipline that too many openly admit they do not have. When it comes to automatic savings you only need to be disciplined enough to initiate the process. From there, the less attention you pay to your savings the better. Once you have set up your budget all you need to is cruise.
Emotional benefits – Some people find it emotionally burdensome to save. They think about how they could have got this or that. They then feel bad that they are saving so much for tomorrow without the chance to live it up today. However, when you ‘forget’ you are saving money you can mentally disconnect from the process. In addition, when it comes to saving with the stock market you’ll have less worrying, analyzing, and fretting about the right time. When that predetermined day for your deposit arrives, it will be the right time.
Better for smaller accounts – If you are trying to save into something like a mutual fund or index fund, then smaller frequent payments actually give you access to funds that you might not otherwise have been able to buy. Many funds decrease their minimum amount required when you set up an automatic purchase plan.
Results – Don’t argue with results. This is a proven and effective method for saving money. Since it has worked for generations there is no reason to think it is going to stop working now.
Time savings – Time is becoming an increasingly valuable commodity. Automatic savings help you have a larger rate of return and saves you time, energy, and effort in the process. Just think about it like a ball at the top of the mountain. You just need to give it a little push and it will do the rest by itself. All you need to do is organize your finances and then you no longer have any additional time investment.
Do you do automatic saving or investing? Why or why not?
Getting life insurance is an important part of most any good – and complete – financial plan. By having this important coverage, you can help to ensure that your loved ones won’t need to face financial hardship in the event of the unexpected.
These proceeds may be used for a variety of situations, including the payment of funeral and final expenses, the payment of large debt obligations such as a mortgage balance, and / or for paying ongoing living expenses. This can be especially beneficial if your loved ones count on you for some or all of their financial support.
When applying for a life insurance policy, it is essential to understand what type of coverage you are purchasing. The amount of life insurance protection is also paramount so that you can ensure that loved ones will have enough to provide for their needs. However, another key factor to be aware of is the insurance carrier that you are obtaining the policy through.
In this case, you will want to know that the insurance carrier is strong and stable financially, as well as that it has a positive reputation for paying out its claims to its policyholders. One company that ranks highly in this area is Allianz.
The History of Allianz Life Insurance Company
Allianz Life Insurance Company is a leading provider of life insurance, as well as income-producing products and overall retirement solutions. This company has been in the business of offering products to its customers for more than 115 years.
This company has held strong through both bull and bear markets – and it consistently has received high ratings from the insurer rating agencies. Because of this, customers who own insurance and financial products from Allianz can be more assured that the company will be there if or when the time comes for filing a claim.
Allianz has a conservative investment philosophy that is diversified across a variety of different asset classes. The company, when investing for its portfolio, seeks long-term financial results.
A Review of Allianz Life Insurance Company
Today, Allianz Life Insurance Company has more than 85 million customers around the world. The company is considered to be the 31st largest company worldwide, and it is the world’s third-largest money manager. It is also the second largest company in the diversified insurance industry, based on both market value, as well as on assets. In 2015, Alliance Life collected more than $11 billion in life insurance premiums.
It is the company’s overall cash reserves that allow it to back its insurance guarantees. As of year-end 2015, Allianz held more than $7.5 billion in equity. Therefore, the company can help to ensure that the funds and the policies that are entrusted with it will be there when the money is needed the most.
Allianz Life Insurance Company’s Ratings and BBB Grade
Due to its strong financial backing, Allianz has been given high marks in terms of its overall financial strength ratings. These include the following:
A+ (Superior) from A.M. Best
A2 (Good) from Moody’s
AA (Very Strong) from Standard and Poor’s
Allianz is not presently an accredited company of the Better Business Bureau (BBB). However, the BBB has provided Allianz Life Insurance Company of North America with a grade of A+. This is on an overall grade scale of A+ through F. The company, over the past three years, has closed no complaints via the Better Business Bureau. And, there are no customer reviews for Allianz that are posted on the BBB’s website.
Life Insurance Products Offered By Allianz
Allianz Life Insurance Company offers a wide variety of life insurance products. Because of that, its customers are able to find the type of coverage that can best fit their need – and policyholders can also revise their coverage should their ongoing needs change.
There are numerous benefits to owning life insurance coverage. The funds that are received by the policy’s beneficiary are income tax-free. This means that, instead of having to pay a large portion of the proceeds to Uncle Sam, 100 percent of these funds can be put to work by your loved ones for paying off debt, paying ongoing living expenses, or any other potential need that they may have.
With permanent life insurance coverage, there is both death benefit protection, as well as the ability to build up a nice amount of savings through the cash-value component of the policy. Here, funds are allowed to grow on a tax-deferred basis. This means that there will be no taxes due unless or until the money is withdrawn. Money may be either borrowed or withdrawn from the cash component of a life insurance policy for any reason – including the supplementing of retirement income, the payoff of debt, and / or for taking a nice vacation.
One of the primary forms of life insurance coverage that is offered via Allianz Life Insurance Company of North America is fixed index universal life. This type of coverage offers a flexible death benefit option, as well as the ability to earn interest in the cash component that is based on a variety of crediting methods and index allocation options. These policies also offer additional riders that may be added. Doing so may help to provide more customized life insurance protection to policyholders. The life insurance plans that are offered by Allianz include the following:
Allianz Life Pro+ Fixed Indexed Universal Life Insurance Policy
This policy begins with an income tax-free death benefit. It also provides the opportunity to accumulate cash value based on positive changes in the underlying market index of the policy. Riders are available to help policyholders with meeting specific needs.
Those who are age 80 and younger are eligible to apply for this policy. Although there are several different risk classes. These include:
Juvenile – For age 0 to 17
Tobacco – For ages 18 to 75
Non-tobacco – For ages 18 to 80
The minimum amount of death benefit on this policy is $100,000, and proceeds may be applied for up to $65 million. There are also several different ways in which the death benefit on this policy is structured. For example:
Level – With the level death benefit option, the amount of coverage will remain the same throughout the life of the policy.
Increasing – With the increased death benefit option, the death benefit amount will be equal to a specified amount, plus the accumulation value.
Return of Premium Option – There is also a return of premium option available. With this option, the death benefit will be equal to a specified amount, plus the amount that the policy holder paid into the policy.
If the insured lives to age 120, the death benefit amount will equal the amount of the policy’s accumulation value. At this time, no additional premiums will be accepted by Allianz, unless they are deemed as necessary for keeping the policy in force.
There are some indexes that may be selected with this policy. These include the Barclay’s U.S. Dynamic Balance Index ll, the S&P 500 Index, or a blended index that includes the Dow Jones Industrial Average (DJIA), the Barclay’s Capital U.S. Aggregate Bond Index, the Russell 2000 Index, and the EURO STOXX 50 Index.
There are also several additional riders that may be placed on this policy to help with customizing the plan to best fit a policy holder’s specific needs. These are:
Waiver of Specified Premium Rider
Convertible Term Rider
Enhanced Liquidity Rider
Loan Protection Rider
Child Term Rider
Additional Term Rider
Other Insured Term Rider
Allianz Life Pro+ Survivor Fixed Index Universal Life Insurance Policy
The Allianz Life Pro+ Survivor Fixed Index Universal Life Insurance policy is a good and cost effective way to insure two individuals at the same time. The proceeds of this policy will be paid out upon the death of the second insured. This type of plan can be more cost effective than the purchase of two individual life insurance policies. Also, in the event that an insured is diagnosed with a terminal or a chronic illness, a portion of the policy’s benefits may then be accessed.
Those who are between the age of 30 and 80 are eligible to apply for this particular plan. The death benefit amount starts at $100,000 and can go to $65 million, within certain guidelines. There are different options for how the death benefit will be structured, which include level, increasing, or a return of premium option. There are also optional riders available, including:
Chronic Illness Accelerated Benefit Rider
Terminal Illness Accelerated Benefit
Other Products Offered
In addition to just life insurance coverage, Allianz also provide other types of financial and income tools. These include:
Annuities
Allianz provides retirement annuities to its customers, as these products can help to ensure that they can receive ongoing income – regardless of how long they may live. The company offers several different types of annuities so that clients may choose the one that will be best for their goals. The types of annuities that are offered are:
Fixed Index Annuities – A fixed index annuity offers returns that are based on an underlying market index. If for example, the index performs well during a given period, then the value of the account will rise, up to a stated cap or percentage. If, however, the underlying index performs poorly in a given period, then the value of the account will not endure a loss, but rather will typically be credited with a 0% for that period. These annuities also allow for tax-deferred growth inside of the account, meaning that there is no tax due each year on the gain until the funds are withdrawn. When the annuity is converted over to income, annuity holders will have several options for how – and how long – they wish to receive the payout. One of these is the lifetime option, which will pay out an income for the remainder of the individual’s life, regardless of how long that may be. In many cases, another individual such as a spouse or partner may also be able to receive lifetime income from the annuity as well.
Variable Annuities – A variable annuity has its funds invested in sub-accounts, which can typically include equity options such as mutual funds. Here, the opportunity to earn a nice return is available. However, due to potential market volatility, there is also more risk with this type of annuity.
Index Variable Annuities – An index variable annuity will also allow its holder to participate in potential market gains, yet with a level of protection against market downturns.
Allianz also offers a myriad of retirement planning tools. These include materials that can help individuals and couples to plan for the future, as well as financial calculators to help determine if you are on track.
How to Get the Best Life Insurance Premium Quotes
When shopping for a life insurance policy quote, it is typically best to work with either a company or an agency that has access to more than just one single life insurance carrier. This way, you will be able to more directly compare the benefits, the companies, and the premium prices that are available to you.
If you are ready to move forward, we can help. We work with many of the best life insurance companies in the marketplace today, and we can provide you with the details that you need. All you have to do in order to get started fill out the form on the side of this page.
We understand that purchasing life insurance can seem a bit confusing. But we can help you to ensure that you are going in the right direction with the type of plan that you choose, and the premium that is charged. So, contact us today – we’re here to help.
In today’s highly competitive financial climate, with thousands of banks and neobanks nationwide, rewards checking accounts are growing more common.
If you have to keep your money someplace, you may as well earn cash back rewards on debit card purchases or a high interest rate.
Best of all, most rewards checking accounts have no overdraft or monthly service fees. After all, if you have to pay any monthly fees or maintenance fees, it will reduce the overall amount you can earn in cash back.
Rewards checking accounts come in two forms: Those that offer cash back rewards and those that let you earn interest on your money, even if it’s in your checking rather than savings.
Regardless of what you’re looking for in a financial institution, you can find it in one of these rewards checking accounts.
11 Best Rewards Checking Accounts
We’ve read consumer reviews, evaluated bonus offers, and read all the fine print to find 11 of the best rewards checking accounts available online or at local branches today.
1. LendingClub Rewards Checking: Best for High Balances
LendingClub offers an online Rewards Checking account with a straightforward 1% cash back on all signature-based debit card purchases. Ranked on Newsweek’s America’s Best Banks list in 2022, the checking account has many desirable features.
First, earn an unlimited 1% cash back on all signature-based debit card purchases and on transactions processed online as a credit purchase once you meet requirements.
You also earn 0.10% interest on your checking account balance of $2,500 to $99,999.99 and 0.15% annual percentage yield APY on balances of $100,000 or more.
LendingClub provides account holders with access to fee-free ATMs within the MoneyPass or SUM networks and unlimited reimbursement for out-of-network ATMs fees. LendingClub says that account holders save more than $180 annually thanks to ATM fee reimbursement.
Like many of the best rewards checking accounts on this list, LendingClub has no monthly fees, no overdraft fees, and no fees for incoming wire transfers.
You will need a $25 minimum deposit to open an account. There are no minimum balance requirements after that. However, to earn interest, you need to deposit cash to maintain at least $2,500 in your account.
To qualify for cash rewards, you must keep your account open for at least 30 days and receive at least $2,500 in recurring monthly direct deposits or maintain a $2,500 or more average monthly balance.
You may also receive direct deposits from your employer as soon as two days earlier than with many other banks.
2. Axos Bank Rewards Checking: Best for High APY and Cash Back Rewards
Axos Bank is a nationally chartered online bank in business since 2000. The bank offers three checking accounts, all with no monthly maintenance fees, unlimited ATM fee reimbursements domestically, and no overdraft fees.
Axos Bank Rewards Checking is the financial institution’s most popular checking account. It pays up to 3.30% APY when you meet certain requirements.
If you receive monthly direct deposits of $1,500 or more, you’ll earn 0.40% APY to start.
You can increase that interest rate with other activities, such as:
Using your Axos Bank debit card 10X a month or sign up for Axos Bank’s free Personal Finance Manager “Account Aggregation” in online banking
Maintaining minimum average daily balances of $2,500 or more in an Axos Invest Managed Portfolios account or an Axos Invest Self Directed Trading Account
Making Axos Bank loan payments (such as mortgage, auto loans, or personal loans)
Plus, you can earn a $100 cash bonus when you open your Axos Bank Rewards checking before June 30, 2023, and have qualifying direct deposits of at least $1,500 each month in the first three months of opening your account.
If you’re willing to sacrifice the $100 cash bonus – or you don’t meet the requirements to earn the maximum APY with an Axos Bank Rewards checking account– you might consider the Axos Bank Cashback Checking account.
This cash back account gives you a straight 1% cash back on all signature-based eligible debit card purchases up to $2,000 per month.
You’ll need to maintain a $1,500 average daily balance to earn this amount. Otherwise, you’ll earn 0.50% of the average daily balance for that month.
You will need a $50 minimum opening deposit to open your Axos Bank Rewards Checking or Axos Bank Cashback checking account.
3. Consumers Credit Union: Best High Interest Checking Account
Consumers Credit Union is one of two excellent credit unions on our list offering checking accounts with rewards or high yield interest rates.
Of the two, Consumers Credit Union is free for virtually anyone to join. As such, it also earned a place on our list of best free checking accounts.
New members will need to pay a one-time $5 membership fee to the Consumers Cooperative Association. But you’ll get that cash back when you fund your account.
The main attraction to a Consumers Credit Union checking account is the 5% annual percentage yield APY on balances up to $10,000 when you meet minimum deposit requirements and make a minimum number of debit card purchases.
To earn the maximum 5% APY, you must have qualifying direct deposits, mobile check deposits or ACH deposits of at least $500 monthly and make $1000 or more in purchases with your Consumers Credit Union Visa credit card each month.
In addition to the high annual percentage yield APY, CCU also offers early direct deposit up to two days before many other banks, and out-of-network ATM fee reimbursement with no limits each month.
CCU works with a network of 30,000 ATMs and more than 5,000 shared branches that are part of the CU Service Center Network co-op.
Convenient, affordable, and profitable with checking account interest rates ranging from 3% to 5% APY, Consumers Credit Union could be an excellent choice.
If you are considering banking with a credit union instead of a traditional or online bank, this may be the best rewards checking account for you.
4. Discover Cashback Checking Account: Best for No Fee Checking
Discover Bank has a cashback debit account with no monthly fees and a host of other benefits. The program is straightforward and there are no minimum deposit requirements or other qualification requirements to earn cash back.
Simply earn 1% cash back on up to $3,000 in debit card purchases each month for up to $360 in extra cash back each year.
Your Discover Cashback Debit account has no fees of any kind, except $30 for an outgoing wire transfer. You will receive free overdraft protection with automatic transfers from your linked Discover Savings. You will not pay a fee at any of 60,000+ ATMs in the network.
You don’t even have to pay fees for bank checks, check reorders, or expedited shipping of a replacement debit card if you lose yours. If you do lose your card, you can easily “lock” it in the app to prevent unauthorized charges.
Like many online checking accounts, Discover offers early direct deposit, mobile check deposit, and an intuitive and user-friendly mobile app.
5. Schwab Bank Investor Checking: Best for Investors
It’s not always easy to find a rewards checking account with no fees and a high yield on your checking account balance. The Schwab Bank Investor Checking account was rated highest in customer satisfaction from J.D. Power and Associates for four years running.
This account is ideal for those who already have a brokerage account with Charles Schwab or who are thinking of opening one. When you open your High Yield Investor Checking account, you will also receive a brokerage account if you don’t already have one.
You can access both accounts online or in the mobile app with a single log in, and transfer money between both accounts with no fees. There is also no monthly maintenance fee.
Schwab pays interest at the rate of 0.45% APY. You must have a minimum deposit of just one penny in your account to earn interest.
When you fund your account with an opening deposit of $100 within 7 to 10 business days, you will receive free checks, deposit slips, mailing labels, and pre-addressed, postage-paid envelopes for depositing checks through the mail into your Investor checking account. You can also use the app for mobile check deposits or deposit money at an ATM.
When you open your high yield checking account, you will receive a Schwab Bank Visa Platinum Debit Card. The debit card provides unlimited ATM fee reimbursements, even in foreign countries, and no fees when you use a Schwab Bank ATM.
There are also no foreign transaction fees when you use your debit card for purchases outside the U.S.
6. Quontic Bank: Best for Fee Free ATM Access
Quontic offers three choices of the best rewards checking accounts, all with no monthly maintenance fees:
High Interest checking with an interest rate of 1.10% APY
Cash Rewards checking
Bitcoin Rewards checking
Plus, you can earn a 4.25% APY with linked Quontic savings accounts. You won’t pay any ATM fees when you use your Quontic debit card at any of 90,000+ ATMs in the AllPoint, MoneyPass, SUM Program, or Citibank networks nationwide.
Quontic’s High Interest checking delivers up to 1.10% APY when you make at least 10 qualifying debit card purchases of $10 or more per statement cycle. Otherwise, you’ll earn 0.01% APY for that month.
The High Interest checking account has no monthly maintenance fees and no overdraft fees. You will need a $100 minimum deposit to open your account.
Quontic’s Cash Rewards Checking has the same features, including no monthly maintenance fees and no overdraft charges. It is a cash back checking account that delivers 1% on all debit card purchases.
Quontic’s Bitcoin Rewards checking offers 1.5% back in Bitcoin on all qualifying debit card purchases. Like the other Quontic rewards checking accounts, the Bitcoin Rewards checking account has no monthly service fees or maintenance fees and no overdraft fees.
You will need a minimum opening deposit of $500 to open your account. This account is not available to residents of North Carolina or Hawaii.
7. SoFi Plus: Best for Perks
SoFi is an online only bank offering cash management accounts providing you with easy access to your money and generous rewards.
One area where SoFi stands out is the additional perks and the variety of services it offers to account holders. It is also one of the few banks offering both cash back and high yield checking and savings.
Your basic SoFi bank account is a free account with no monthly fee, no minimum balance requirements, no ATMs fees when you bank through any of the 55,000+ ATMs in the Allpoint Network nationwide.
Through a partnership with SoFi Stadium in Los Angeles, California, members also get 25% cash back on stadium purchases with their SoFi debit card, express entry and VIP access to concerts, Rams, and Chargers games.
SoFi also gives members access to savings “Vaults,” where you can set aside money for specific purposes – from emergency savings to a family vacation.
Your deposit account is insured for up to $2 million through SoFi’s partner banks. Each bank offers FDIC coverage up to the $250,000 federal limit, but deposits may be split between financial institutions to increase coverage limits.
If you want to upgrade to SoFi Plus, you’ll unlock a host of other benefits. SoFi Plus is the online bank’s premium offering, but there’s no monthly fee when you establish direct deposit of any amount, with no other minimum balance requirement or deposit requirements.
Your SoFi Plus rewards checking account offers 15% cash back when you use your SoFi debit card at select local retailers. Plus, earn 1.20% on checking and 4.20% on savings and Vault balances.
You’ll also get a personal loan rate discount of 0.25%. SoFi Plus members also get 2X rewards points, which you can redeem for cash, special member events, and experiences within the SoFi mobile app.
SoFi has a referral program, allowing you to earn cash or Rewards points when friends and family sign up for SoFi cash management accounts using your link.
Plus, right now, new SoFi customers receive up to $250 in cash when they open an account and set up a qualifying direct deposit. If your direct deposit is $1000 to $4,999.99, you’ll get $50 in cash. If you deposit $5,000 or more, you’ll earn $250.
Few banks offer so many perks or financial services under one umbrella, which is why SoFi consistently earns “Best Online Bank” accolades from top personal finance sites.
8. Connexus Credit Union: Best Credit Union
Connexus is one of two credit unions on our list of best rewards checking accounts. The Connexus Xtraordinary account offers a 1.75% APY when you meet certain requirements, which include signing up for e-statements and making 15 qualifying debit card purchases or spending $400 in debit card transactions monthly.
Connexus has a vast network of more than 67,000 fee free ATMs, partnered with co-op and MoneyPass networks.
You will also receive $25 in ATM fee rebates monthly. When you link your Connexus savings account to your Xtraordinary checking, you can also take advantage of free overdraft protection.
Connexus also has a similar rewards checking account for teens. With no direct deposit requirements or debit card purchase requirements, teens can earn 2% APY on the funds in their Connexus rewards checking account.
To qualify for membership in Connexus credit union, you must reside in certain cities in Illinois, Wisconsin, Ohio, or Minnesota.
You can also qualify if you work at one of dozens of Midwest companies, institutions, or organizations, or simply pay a $5 one-time donation to join the Connexus Association.
Connexus Teen and Connexus Xtraordinary checking accounts have no monthly service fees and no minimum account balances required to earn interest.
You must make a minimum opening deposit of $5 into your linked Connexus savings account to become a member.
9. TD Bank Beyond Checking: Best for Sign-up Bonus
If you are looking for the convenience of a traditional bank and the money-saving benefits of online banking, a TD Bank Beyond Checking account could be the best rewards checking account for you.
The TD Bank Beyond Checking account pays an interest rate of 0.01% APY on all balances. This is lower than the national average, but you’ll also get other perks with your account. First, let’s discuss the generous sign-on bonus of $300 and how you can earn it.
When you open your account and make $2,500 in qualifying direct deposits within 60 days, you’ll earn $300 cash back.
Keep in mind, there is a $25 monthly maintenance fee associated with the account, but it’s fairly easy to waive, especially if you have other TD deposit accounts.
You can waive the monthly maintenance fee by:
Receiving monthly direct deposits of $5,000 or more or
Maintaining a $2,500 minimum daily balance or
Having $25,000 or more in combined balances across eligible TD accounts, which includes deposit accounts, mortgages, home equity loans, and home equity lines of credit.
In addition to the sign-on bonus and interest on your checking balance, TD offers a free linked Simple Savings account, overdraft protection, easy mobile and online bill pay, and 24/7 fraud monitoring on your TD accounts.
The bank also reimburses numerous common fees, including fees for non-TD ATM transactions, outgoing wire transfer fees, rush bill payments, and up to two overdraft fees waived per year.
The TD Overdraft Relief service allows you more time to get your account out of the negative and also allows you to link your TD Savings account for overdraft protection through automatic transfers.
10. Aspiration Plus: Best for Helping the Planet
Crediful’s rating
Aspiration is a neobank with a straightforward cash management account called Aspiration Spend Save and a premium account called Aspiration Plus.
Aspiration Spend Save account holders can choose to pay monthly fees as low as zero. Each month, you can pay whatever amount you feel is fair for your bank account.
If you want to upgrade to Aspiration Plus, you will pay $7.99 per month. If you pay upfront, annually, you’ll save $2 each month for a total of $71.88 for the year.
Your Aspiration Spend Save account offers 3% to 5% in cash back rewards when you shop with a network of preferred, eco-friendly and socially conscious companies known as the Conscience Coalition.
Some of the retailers in the Conscience Coalition include Warby Parker, Blue Apron, Imperfect Foods, Toms, Brightly, Got Bag, and more.
Aspiration Plus members earn 10% back at Conscience Coalition retailers. Aspiration Plus members also receive one out-of-network ATM fee reimbursement each month and Purchase Assurance on items bought with their Aspiration debit card if they are lost or stolen within 90 days.
Aspiration Plus members also help to fund carbon offsets with each fuel purchase. For every gallon of fuel purchased with your card, Aspiration buys carbon offsets equal to the CO2 emissions generated by that gasoline.
Your Aspiration Plus account also pays 3% interest on money in the Save portion of your account. Regular Aspiration members only earn 1% interest on savings. In both cases, you’ll need at least $500 worth of qualifying debit card purchases in a month to earn interest.
There is a $10 minimum deposit to open an account. There are no ATM fees with Aspiration when you use one of the 55,000+ ATMs in the AllPoint network, plus you get one ATM fee reimbursement each month.
In addition to unlimited cash-back and high yield savings, your Aspiration account also has many other perks and benefits.
When you use the “Plant the Change” program, you can round up your debit card transactions to be deposited into your Save account and Aspiration plants a tree each time you do.
You can read our full Aspiration review here.
11. Truist Bank: Best for Younger Savers
Crediful’s rating
In May 2022, Truist Bank acquired Long Game, an award-winning gamification savings app. The partnership gives Truist bank account holders access to one of the most unique rewards programs in personal finance.
Long Game makes setting savings goals – and reaching them – fun by allowing you to play phone games similar to Fruit Ninja and Candy Crush based on cash deposits you make into your Truist Savings Account.
You can earn extra cash each time you play, as well as earning interest of 0.01% APY on your savings balance. You can also earn coins to play games by answering trivia questions.
Your Truist One checking account delivers rewards of its own when you open select Truist credit cards. Your bonus rewards, which can be 10% to 50% more cash back or miles than you’d normally receive, depend on your Truist One checking account monthly average balance.
Your Truist One checking account comes with a debit card, but you can upgrade to a Delta SkyMiles Debit Card if you pay the $95 annual fee. Truist One checking accounts also include linked Truist One savings accounts with no monthly maintenance fee and a $100 negative balance buffer.
To qualify for overdraft forgiveness, you’ll need to have your account open for at least 35 days with a positive balance, and have a qualifying direct deposit of at least $100 for two consecutive months. Truist Bank never charges overdraft fees, but without negative balance protection, transactions may be declined.
Your Truist One checking account has a $12 monthly service fee, but there are five easy ways to waive that monthly service fee.
To waive the monthly fee, you must meet one of the following requirements:
Make $500 or more in qualifying direct deposits monthly
Maintain a combined balance of at least $500 in Truist deposit accounts
Have a Truist credit card, mortgage or consumer loan
Have a linked Small Business checking account
Be a student under the age of 25
Methodology: How We Select the Best Rewards Checking Accounts
When we evaluated the best rewards checking accounts, we took many features, benefits, and costs into consideration. We also recognized that people’s needs vary. Some may want an online only bank, while others prefer a credit union or even a traditional, brick-and-mortar financial institution.
Rewards on Debit Card Purchases
When most people think of a rewards checking account, they imagine receiving cash back on debit card purchases. Banks that offer cash back on everyday purchases gained favor and a spot on our list.
Account Yield
Some rewards come in the form of a high interest rate on money held in a checking account. Several interest bearing checking accounts with an interest rate of 1% or higher made our list. It is even better if you don’t have to maintain a minimum account balance to receive the highest interest rate.
Fees
On our list of the best rewards checking accounts, we gave preference to accounts with no monthly fees. We also considered other fees, such as overdraft fees, transfer fees, and ATM fees. Banks that offer unlimited ATM fee rebates or even some ATM fee reimbursements each statement cycle were considered favorably.
Minimum Requirements
You should be rewarded by your bank whether you have a large balance or small. For that reason, we gave preference to banks with no minimum deposit requirements and no minimum balance requirements to earn rewards. In some cases, you may need to receive a direct deposit each statement cycle to earn rewards or to receive the highest annual percentage yield APY.
Account Opening Bonus
Some banks offer a generous account opening bonus or even referral rewards when you share your referral link with friends who open an account. It’s nice to start your new bank account with a cash back from a sign-up bonus.
Overdraft Protection
Bank accounts that offer overdraft protection, either through linked savings accounts or by providing a grace period to bring your account back into the positive, earned points on our list.
ATM Network
One way to avoid fees is to find a bank with a large ATM network. Many of the banks on this list use the Allpoint or MoneyPass ATM network with more than 60,000 machines nationwide. We also looked for banks that provide ATM fee reimbursements for using teller machines out of the bank’s ATM network.
Nationwide Availability
We made sure that consumers nationwide could open an account online or in person. We didn’t choose regional banks or credit unions with limited availability, although a small, local bank might meet your needs.
One credit union that made our list, Consumers Credit Union, is available to anyone over the age of 18 willing to pay a $5 membership fee to join the Consumers Cooperative Association. The other credit union we chose also has similarly broad membership requirements. Anyone can join if they make a $5 donation to the Connexus Association or meet certain membership requirements based on city of residence or occupation.
Customer Service
Whether you choose an online only bank or one of the traditional financial institutions on this list, you want to make sure you have access to the best customer service. We chose banks that generally received high marks for customer service on consumer review websites and offered multiple ways to reach customer service reps by phone, email, or online chat.
Tips for Finding the Best Rewards Checking Account
Before you open a rewards account, ask about minimum deposit requirements. Also find out if you need to maintain a minimum balance or set up direct deposits to avoid fees. Look for a bank with a large ATM network and ATM fee reimbursements for using machines outside the network.
Rewards Checking FAQs
Find out what people are asking about the best rewards checking accounts.
How does a rewards checking account work?
Rewards checking accounts pay you money for banking with them. In some cases, you will receive cash back on debit card purchases. Other rewards checking accounts pay interest on your balance. Some also offer additional perks, such as loan rate discounts, access to special events, ATM fee reimbursements and money management tools.
Should you apply for a rewards checking account?
If you are looking to put extra cash in your pocket, a rewards bank account is one way to do so. Most rewards checking accounts do not require a credit check or an application fee to apply. If you are opening a new bank account or considering switching banks, it’s worth considering how you can earn checking account rewards for things you do daily, such as using your debit card or depositing money.
How much does rewards checking cost?
Most of the top rewards checking accounts have no monthly fee, fee-free ATMs, and at least some ATM fee refunds each statement cycle.
Editor’s note: TPG’s Erica Silverstein accepted a free trip from Oceania Cruises to attend the unveiling of Vista. The opinions expressed below are entirely hers and weren’t subject to review by the line.
“Is this a luxury cruise ship?” That was the question on everyone’s lips during the maiden sailing of Oceania Cruises’ Vista, the first new Allura-class vessel to debut for the upscale cruise brand.
We gawked at the beautifully designed public spaces, with their detail-oriented accents, eye-catching light fixtures and highly textured materials. (Yes, I petted the walls of the elevators and stroked every chair.) We luxuriated in enormous standard cabin bathrooms and sumptuous Tranquility Beds. We dined on exquisite freshly made pasta, perfectly cooked fish and decadent desserts. We ordered smoked, bubbled, herbed and ice-balled cocktails at the ship’s craft cocktail bar and took photos of each creative concoction.
Vista is clearly a ship for travelers who love to explore new destinations, prioritize fine dining and premium beverages and immerse themselves in chic surroundings. However, in the cruise space, this ship is clearly in the upscale category and not true luxury.
Then again, when you’re curled up on a circular day bed, drink in hand, on a resort-style pool deck in the Mediterranean, Vista might just provide all the luxury you need.
Overview of Vista
Vista debuted in May 2023, the first new ship for Oceania Cruises in a decade and the flagship of the line’s new Allura class. It carries 1,200 passengers in cabins and suites that all have either a true balcony or a French veranda (meaning you can open doors to the fresh air but can’t step outside).
The ship’s target demographic is well-off, mature couples who are looking for destination-focused itineraries on a ship with elevated dining. For a small, 67,000-ton ship, Vista wows with eight restaurants, plus a bakery and private dining rooms for wine-paired meals. It also stands out for its expanded Culinary Center, for cooking classes and demos, and Artist Loft, where passengers can get crafty under the tutelage of resident artists.
For cruise news, reviews and tips, sign up for TPG’s cruise newsletter.
Fans of the line will appreciate that Vista is modeled from sister ships Marina and Riviera, and the layout is strikingly similar.
Sign up for our daily newsletter
Vista is not an all-inclusive ship, but it’s more inclusive than lines such as Celebrity Cruises or Holland America. Its fares cover all dining (except for private, wine-paired dinners), fitness classes, nonalcoholic beverages and in-port shuttles. Its booking promotions may offer additional inclusions, like free Wi-Fi, airfare, excursions, beverage package or shipboard credit.
What I loved about Vista
Dining choice
Some people love to return again and again to their favorite restaurants; others prefer to try a new venue every time. I fall into the latter category, so I loved that I could eat at a different restaurant each night of my cruise on Vista.
I could get dolled up and go to a steakhouse or Italian restaurant, or I could play it casual and eat on the buffet’s outdoor terrace or at the pizzeria. I could enjoy a multi-course sit-down lunch or take my pick of eight burgers at the grill. Vista also had plenty of options for between-meal grazing – a quiche from the Bakery, a scone at Horizons’ afternoon tea, or a cookie from the Concierge Lounge.
Not only did Vista’s large selection of eateries keep my meals interesting, but there wasn’t a bad option in the bunch. Sure, sometimes I didn’t order the right dish, but I enjoyed every meal I ate on board.
Design
Vista will wow you with its gorgeous looks from the moment you step on board. The atrium gives a knockout first impression with its stunning floor-to-ceiling sculpture with a changing light display.
The bold center archway of the Grand Dining Room will immediately catch your eye, as will the ceiling design of the intimate Privee dining room. Each specialty restaurant has been designed with care, from the brick oven-inspired ceilings of Ember to the pagoda-style floor lamps in Red Ginger.
The noteworthy Grand Lounge sports geometric chandeliers and glass shelves of vases and glass sculptures, while the faux wood paneling on the pool deck sets it apart from any cruise ship Lido you’ve ever seen. The glam settings make you feel like you’re a movie star and add to the decadent feeling of being on vacation.
Cocktails and mixology program
The new mixology program on Vista is one of its standout features. I happily ordered cocktail after craft cocktail at the Founders Bar in the name of research, trying drinks with smoke bubbles on top, frozen fruit balls in their center and unique ingredients (like tea) in their centers. The concept turns your standard pre-dinner drink into a playful and exciting event. It also makes a ship carrying mainly retirees feel hip and trendy.
Vista also carries a line of nonalcoholic “liquors” to make zero-proof cocktails that taste like the real deal, as well as nonalcoholic beer. It’s a fabulous option for sober cruisers or travelers who need to rest their livers after a lively evening. Unfortunately, not all bars carry nonalcoholic cocktails. On my cruise, I found them on the menu at the new Aquamar restaurant and Horizons observation lounge.
What I didn’t love about Vista
Nightlife
I failed to find anything serious to critique about Vista, so what I didn’t love about the ship is more about my personality than any real failing of the cruise line.
Evenings on Vista do not offer a variety of pursuits. You can go to a bar, with or without music. You can try your luck at the casino. You can attend the one show each evening, but only if your dinner time allows for it. That’s pretty much it.
My cruise did not offer karaoke night, evening trivia and games, or a pool deck party. I missed the two special-guest acts, a pianist and a guitarist, and the song-and-dance performances by the onboard cast failed to impress. The ship didn’t offer any secondary shows at night — no comedians or musical acts you came to listen to and not talk over.
To be fair, small-ship upscale cruising isn’t about nightlife, and most travelers on Oceania are perfectly content with a long dinner, an evening dancing or drinking in Horizons and an early bedtime. The library does have some board games you can borrow, so consider that as an alternative activity.
Service
One should never judge a ship’s service based on its first sailings when the crew is still getting used to each other and the layout and procedures of a new ship. I mention service solely to answer the question of why Vista isn’t considered a luxury ship.
In terms of hardware, Vista is one fine ship, which rivals the vessels belonging to luxury lines like Silversea Cruises and Seabourn, even nipping at the heels of over-the-top sister line Regent Seven Seas Cruises. It’s in the “software,” so to speak, where the line relegates itself to the upscale sector. And that’s fine.
In addition to not offering truly all-inclusive fares, Vista doesn’t offer the personal, often fawning service you find on true luxury lines. I barely met my room steward. No one offered to carry my plate at the buffet. The chefs weren’t offering to make me dishes off-menu, and on occasion, I had to work to flag down a waiter to bring me a drink. Personally, I’m fine with this level of service, but it does not put Vista in competition with ultra-luxury ships.
The few service issues will improve over time. But Vista, by nature, will never offer the crew-to-guest ratio or over-the-top service levels you’d expect to find on a more expensive cruise line.
Vista cabins and suites
Vista has only eight major cabin and suite types, making cabin selection a relatively straightforward process. Its three main non-suite cabin types – French Veranda, Veranda and Concierge Level staterooms – have identical interior layouts, so you’re really only choosing between perks and exterior space.
New and noteworthy on Vista are Oceania’s first dedicated solo cabins, 270-square-foot balcony cabins with a twin bed, smaller bathroom and slightly narrower design than a regular veranda room. They’re Concierge Level rooms, so solo travelers get extra benefits, such as access to the Concierge Lounge and Aquamar Spa Terrace.
My cabin was a regular Concierge Level room with a private veranda. At 291 square feet, it was the same size as a Veranda room, but with a slightly nicer interior design. (French Veranda rooms are identical to Veranda rooms in design, but where the Veranda cabins have a private balcony, French Veranda rooms have floor-to-ceiling glass doors that open to a railing; you can get fresh air but you can’t step out.)
I was very happy in my Concierge Level room on Vista. Oceania’s Tranquility Beds are some of the best in the business, and I loved falling asleep between a snuggly duvet and 1,000-thread-count sheets. Even better, the bed is flanked by three-drawer nightstands, 100V plugs and USB ports and reading lights.
Storage is decent with a two-door closet, two deep drawers in the desk, two coat hooks on the wall and a few additional shelves. It was the perfect amount of space for me, but I could see how a couple might fight over the drawer space.
The room had a mostly forgettable love seat, other than it looked nice and pulled out into an extra bed. The oval marble table was a perfect size for room service breakfast.
The highlight of the room, in my opinion, was the spacious, marble-tiled bathroom. Here, there was storage in spades: two glass shelves in the large shower, one large drawer and shelf space in the vanity and a corner unit with four deep drawers and three shelves in a mirrored cabinet. The shower had a rain head and a wand on an adjustable mount. The large no-fog mirror lit up at the touch of a button, perfect for putting on makeup.
I also appreciated the comfortable, padded balcony furniture. Standard balconies on Vista come with two upright chairs and a round drinks table, but the cushions made the seating comfier than the mesh-and-metal versions you find on many big-ship cruise lines.
Other thoughtful touches in the room include an electronic thermometer and do not disturb sign touchpad, quiet-close drawers, wooden hangers and carafes of Vero water, plus reusable water bottles to take on tour (to reduce single-use plastic water bottles). The mini fridge was stocked with soft drinks, though my cabin attendant didn’t seem to notice that I was drinking exclusively club soda. You’ll also find the requisite safe and hair dryer (neither of which I used), an umbrella and a shoehorn.
Concierge Level rooms come with extra perks, most of which are useful but not necessary. You get access to the lovely Aquamar Spa Terrace, with its hot tubs, day beds and thalassotherapy pool. You also get access to the Concierge Lounge on Deck 9; I don’t know why you’d want to watch TV in this windowless lounge, but I appreciated the 24/7 drinks and snacks and access to a concierge.
Other amenities include a welcome bottle of Champagne, pashmina-style cashmere lap blankets for use in your cabin and a tote bag. Perks include priority embarkation, lunch and dinner room service from the Grand Dining Room menu (I totally missed this one), priority specialty restaurant reservations, and complimentary laundry (up to three bags), pressing (on embarkation day) and shoeshine service.
1 of 7
Penthouse Suite on Vista. ERICA SILVERSTEIN/THE POINTS GUY
For those with an urge to splurge, Oceania has four additional suite categories, each with butler service and access to an Executive Lounge. The Penthouse Suites are simply an expanded version of the balcony rooms, with additional closet and seating areas. The Oceania Suites have a full living and dining room, a separate guest or TV room, large balcony, guest bathroom and marble-clad master bath and dressing area. They are mostly found on Deck 12, but two on Deck 11 aft have wraparound corner balconies.
The eight Vista Suites, which I didn’t see, are even bigger than the Oceania Suites and located at the front of the ship, so they have extra-long wraparound balconies. The three Owner’s Suites span the entire aft width of the ship, with two balconies, and are designed by Ralph Lauren Home. A light-filled grand foyer opens onto the living, dining and bar area on one side and the enormous master bedroom with king-sized bed, walk-in closet and generous bathroom with soaking tub and ocean-view shower.
Vista restaurants and bars
Oceania prides itself on being a foodie cruise line, and Vista carries on the line’s tradition with six major dining venues included in the cruise fare, over-the-top extra-fee wine-paired private dinners and a new mixology program that goes above and beyond what its competitors are offering.
It’s hard not to nitpick a line that brags it has “the finest cuisine at sea” (and has even trademarked that tagline). Each meal may not be the best you’ve ever had on a cruise ship, but each meal you have will be solid, with plenty of choice of both where to dine and what to select from the menu. Vista is certainly a ship foodies will appreciate.
Restaurants
I made a point to try every restaurant on board during my weeklong cruise, and it actually took some scheduling to make it happen. It’s a good thing most of Vista’s sailings are 10 days or longer, so you have ample time to sample all the dining venues and even make repeat visits to your favorites.
You are allowed to make at least one advance reservation for each of Vista’s four specialty restaurants — possibly more depending on the length of the cruise and the type of cabin or suite you book. Once on board, you can ask if there’s walk-in availability for additional meals.
The Grand Dining Room is perhaps the most gorgeous main restaurant I’ve ever seen on a cruise ship. The design, with white archways in the center of the room, is also functional; it separates the giant venue into nooks, so it doesn’t have that hotel ballroom feel.
At breakfast, you can order everything from grilled lamb chops and broiled kippers to omelets, pancakes and lighter fare, such as yogurt parfaits. The highlight of the lunch menu is the “Taste of the World” sampler platter themed around a different country each day.
The dinner menu makes three suggestions for themed meals: selections from Jacques Pepin’s namesake French restaurant on Vista’s sister ships, global cuisine and Aquamar Vitality cuisine (ie lighter dishes). Don’t miss the creative Humphry Slocombe ice cream for dessert, with flavors like Elvis the Fat Years and Harvey Milk & Honey Graham.
1 of 10
Terrace Cafe on Oceania’s Vista. ERICA SILVERSTEIN/THE POINTS GUY
0
1
2
3
4
5
6
7
8
9
The Terrace Café is Vista’s buffet venue with indoor and outdoor seating. The stunning wall mosaics set the tone for the sophisticated spread you can sample here. Think daily sushi, an array of fine cheeses, made-to-order omelets, pasta and steaks and premium ice cream (including one Humphry Slocombe flavor at lunch and dinner). The vegetarian options weren’t always the best at the Terrace Café, though it often had gluten-free pasta.
On either side of the Terrace Café are several new and returning casual dining venues that should not be overlooked.
Waves Grill has always been one of my favorite grill venues at sea. Midday, it serves sandwiches, hot dogs, grilled entrees (mahi mahi, cajun chicken) and a huge selection of burgers, including Wagyu, veggie and salmon, in addition to the classic cheeseburger.
In the morning, it offers a downsized breakfast buffet with made-to-order omelets. At night, it transforms into a pizzeria with Italian-style pizza, a burrata menu (do not miss the burrata and tartufo dish) and a sinful Nutella pizza dessert. Pro tip: You can place an order at Waves and ask for your dish to be delivered to your table at the Terrace Café, so you don’t have to choose between the options.
Past Oceania cruisers might wonder where Waves’ famous smoothies and power bowls got to. The answer is Vista’s new “healthy” dining venue, Aquamar, set up on the opposite side of the Terrace Café from the Waves Grill.
In the morning, don’t miss Aquamar’s selection of avocado toast or its freshly made juices, unusual lattes and smoothies. (You haven’t lived until you’ve spiked your morning OJ with turmeric and cayenne pepper.) Energy bowls, banana pancakes and omelets round out the breakfast menu.
The lunch menu at Aquamar is vast. You can order poke-style bowls or compose your own, do a breakfast repeat with omelets and avocado toast, or order sandwiches from around the world, including tuna tacos, falafel pita, a Mexican chicken wrap or an Impossible burger. Wash it all down with a nonalcoholic cocktail that will have you convinced you’re drinking the real thing.
All the previously mentioned restaurants allow you to dine at will, but Vista has four reservations-required dinner spots that are the stars of the show. Three return from sister ships Marina and Riviera, while one is new, replacing French restaurant Jacques.
1 of 4
Ember restaurant on Oceania’s Vista. ERICA SILVERSTEIN/THE POINTS GUY
The new entrant to Oceania’s food scene is Ember, serving inventive American fare. Though the venue is one of Vista’s signature restaurants, it has a more casual vibe than the others, and meals here don’t take quite as long. Consensus on my sailing is the standout dishes are the spinach and artichoke dip, lobster mac and cheese (with an actual hunk of lobster-in-the-shell on top) and the triple chocolate brownie sundae.
On the opposite end of the spectrum is Polo Grill, Vista’s fanciest restaurant, where dinners can take hours. It’s a classic steakhouse in a dimly lit setting with an enormous menu where protein is the star.
While it was perhaps not my favorite dining venue on board, the salmon I ordered was cooked perfectly, so moist and tender that I raved about it for the rest of the cruise. Folks at my table ordered everything from filet mignon to a whole Maine lobster, and everyone was satisfied with their choices.
Also, you may be understandably tempted to order the Polo Quartet of four desserts to finish your meal. I will save you the trouble by telling you the key lime pie is hands down the best of the bunch, and you should order the full-size version and skip the tasting plate.
1 of 6
Polo Grill on Oceania’s Vista. ERICA SILVERSTEIN/THE POINTS GUY
Toscana is Oceania’s long-standing Italian restaurant, but on Vista, it’s newly enhanced with dishes created by the ship’s godmother, Italian food star Giada De Laurentiis. If you enjoy veal, this is your spot; nearly half of the secondi menu consists of veal dishes (you can also order lamb and roast suckling pig here). I tried Giada’s branzino and wasn’t wowed.
Whatever you order, make sure to order at least one pasta dish with Toscana’s incredible ship-made pasta. You can’t go wrong with Giada’s lemon spaghetti or the pesto gnocchi. If you need to skip dessert at one specialty restaurant, this is where I’d pass … unless you are a die-hard tiramisu fan.
The final specialty restaurant is Red Ginger, a pan-Asian dining experience. Perhaps it’s because I love Asian food, but I have a hard time choosing what to eat at Red Ginger because everything looks so good. You could make a meal on appetizers alone.
To start, try the sushi, duck and watermelon salad or summer rolls. For your main, consider the miso-glazed sea bass, lobster pad thai, bulgogi ribeye steak or red curry chicken. You might think dessert is a non-starter, but the caramel tapioca was tasty, and the soft ice cream with Japanese togarashi is a fun mix of sweet and spicy.
1 of 3
Red Ginger on Oceania’s Vista. ERICA SILVERSTEIN/THE POINTS GUY
Vista also offers multiple options for intimate or private wine-pairing lunches and dinners on board. They include a wine-pairing lunch at Ember and wine-themed dinners in private dining rooms attached to Toscana and Polo Grill. Hidden between those two restaurants is Privee, another intimate dining room where two special dinners are held: Odyssey (described as a “gustatory journey for the senses”) and the Dom Perignon Experience that pairs special Champagnes with equally special dishes.
But the food options don’t end with the restaurants. The Bakery by Baristas was a popular spot for daily beignets, quiches and pastries. Afternoon tea in Horizons is an Oceania specialty, with your choice of Twinings tea, scones with jam and clotted cream, tea sandwiches and cakes and petits fours all wheeled around in glass carts by formally dressed waiters.
Bars
Vista’s bars are hopping before and after dinner because there’s not much else to do on board at night.
The Martini Bar is the most happening lounge, located near the Grand Dining Room, several specialty restaurants and the casino. A pianist performs here on and off throughout the evening. You can find all your standard mixed drinks here, as well as a special martini menu. At peak times, you might not be able to find a seat.
On the other side of the casino is the Founders Bar, a new concept for Oceania, dedicated to creative craft cocktails. If you like your drinks topped with smoke bubbles, frozen balls of fruit or sprigs of herb or dried fruit slices, this is your spot. Seating is limited, but you can request your drink be delivered around the corner to the Grand Lounge, a stunning scenery area where a classical string quartet plays in the evening.
1 of 3
Founder Bars on Oceania’s Vista. ERICA SILVERSTEIN/THE POINTS GUY
Be careful — it’s so fun trying out all the crazy concoctions that you might bust your drink budget if you haven’t upgraded to the premium beverage package.
Horizons is the observation lounge at the top of the ship, looking forward. We heard rave reviews of the live band here and some choice words about the resident DJ, but if you want to watch the sunset or get your groove on after deck, Horizons is the bar for you.
Baristas is the coffee bar by day and aperitif bar by night. Get your daytime caffeine fix with Illy espresso, macchiatos, cremas and more, including coffees spiked with booze. After 6 p.m., you’ll find an Italian-influenced list of aperitifs and digestifs (amaretto, Campari, limoncello), as well as wines and cocktails (such as an Aperol spritz or negroni).
The pool bar serves all the daiquiris and coladas you can drink while lounging on Vista’s gorgeous, resort-style pool deck. You can also order drinks at any of the restaurants. Aquamar has a lovely menu of nonalcoholic cocktails, fresh juices, lattes and smoothies.
Vista is also introducing new immersive cocktail experiences for the cruise line, which unfortunately had not yet debuted on my sailing. These will include a customizable Bubbly Bar in Baristas, a Bloody Mary Bar at lunch in the Terrace Café, a Macallan whisky and chocolate pairing, and cocktail-making seminars pairing Brugal 1888 rum with ice cream or tea.
Vista activities and shows
An Oceania cruise is a destination-focused trip, so onboard activities are kept to a minimum. You’ll find trivia contests, spa seminars, casino tournaments and technology classes at the LYNC Digital Center, such as travel photography and photo editing for social media.
Where Oceania excels in onboard activities are with cooking classes and demos in the Culinary Center and art classes at the Artist Loft. Oceania brings on real chefs and working artists to lead the workshops. Sign up as soon as you get on board because these popular classes fill up quickly.
I tried a “drip technique” painting class where we decorated glass plates, and it was a far cry from the watercolor or needlepoint classes you might find on other ships. The two-part class explored a unique technique, and even though I’m not experienced in crafting and my plate looked pretty bad after the first class, the artist knew what he was doing, and my final product was surprisingly good. It’s also a fun way to socialize with other passengers and the artists in residence.
Vista’s culinary center is three times larger than the versions found on sister ships Marina and Riviera. In addition to the test kitchen with 24 individual cooking stations, a second room can be arranged for lectures or even dinners. Classes are themed, often related to the ship’s destination, and yes, you can eat what you cook. They do cost extra; fees start at $79.
On a warm, sunny day, Oceania’s gorgeous resort-style pool deck is the place to be with padded loungers and day beds, a main pool with a wading area around it and a couple of hot tubs. Sporty types should head to the ship’s topmost half decks for an outdoor running track, shuffleboard, croquet/bocce, pickleball, mini-golf and a golf-driving cage.
The Aquamar Spa on Deck 15 offers a barber shop, salon, fitness center with aerobics studio and sauna and steam rooms in the men’s and women’s locker rooms. Concierge Level and suite guests receive complimentary access to the Aquamar Spa Terrace at the front of the ship, with two hot tubs and a thalassotherapy pool.
If it’s cool and rainy, consider decamping to the nook- and book-filled library, where you can borrow games, settle in with your laptop or peruse guidebooks. Baristas is right around the corner. The ship also has the requisite shops selling fine jewelry and logo items.
In the evenings, you can find a singer-pianist in Martinis, a string quartet in the Grand Lounge and a band followed by a DJ in Horizons. I heard great things about Vista’s Music Station Band, but somehow I was always eating dinner when they were performing.
Each night, there’s a show in the Vista Lounge, either a guest performer or a typical cruise ship song and dance show by the onboard performers. One of the new shows on Vista was choreographed by Britt Stewart, a professional dancer who’s worked with “Dancing with the Stars.”
Vista itineraries and pricing
Vista will spend its summers in the Mediterranean and winters in the Caribbean. In fall 2023, the ship will also visit Canada and New England and transit the Panama Canal twice. Cruises range in length from seven to 90 days, but most are one to three weeks in length.
Cruise-only prices start from $1,799 for a French Veranda cabin or $2,049 for the lowest-category balcony room on a seven-night Caribbean cruise. Alternatively, you can choose Oceania’s more inclusive and expensive OLife fares; these start from $2,599 for the French Veranda cabin or $2,849 for a regular balcony room.
The current OLife promotion runs through June 30 and includes round-trip airfare and transfers, plus your choice of four shore excursions, a beverage package or $400 onboard credit per cabin. Starting in July, the line will offer a set of included perks, without the need to choose, but the actual inclusions may change during promotional periods.
What to know before you go
Required documents
The travel documents you need for your Vista cruise are determined by your itinerary and homeports. For most cruises, you will need a passport that is valid for six months after your trip ends. For round-trip sailings out of U.S. homeports, a birth certificate and government photo ID will suffice. It’s up to each passenger to determine if any of the ports of call require additional visas.
When you finish checking in online for your cruise, Oceania will email you a boarding pass that you should print out and bring with you to the terminal.
Gratuities
Crew gratuities are added to your onboard bill and amount to $18 per person, per day, in Concierge-class rooms and below, or $23 per person, per day, in upper-level suites. Gratuities can be prepaid. You are always welcome to tip above the auto-gratuity for exceptional service. All tour guides should be tipped in cash at the end of a tour.
A 20% gratuity is added to onboard bar and spa bills.
Wi-Fi
Vista is one of the first Oceania cruise ships to use Starlink high-speed internet. I can attest to the speed of Oceania’s premium plan after attending a 90-minute Zoom meeting with only the slightest of lag.
Every cabin comes with one free Wi-Fi login (for one device at a time), or you can pay to add additional devices or for the premium plan that accommodates music and video streaming.
Carry-on drinks policy
Passengers can bring up to six bottles of wine per cabin for consumption in their room. If you wish to drink your own wine in a restaurant or public area of the ship, you will need to pay a $25 per bottle corkage fee.
Smoking policy
Vista offers designated areas on the Deck 12 pool deck (forward, starboard corner) and in the smoking lounge on Deck 14 forward, outside Horizons. The latter is a gorgeous space with forest-green walls, but it is entirely indoors. This policy applies to e-cigarettes, pipes and cigars, in addition to regular cigarettes.
Smoking is forbidden everywhere else on board, including in cabins and on private balconies. Passengers who are caught in violation of the smoking policy will be disembarked at the next port of call and may also be required to pay additional fees to cover costs for cleaning or replacing damaged furniture or decking.
Laundry
Vista has complimentary self-service launderettes on decks 7, 8, 9, 10 and 11. Each is outfitted with a detergent dispenser, washers and dryers, an ironing board and a seating area with a TV if you choose to wait for your load to finish. You can walk away while your load runs, but set a timer because folks will remove your clothes if you don’t pick them up in a timely fashion.
Alternatively, you can pay to send out your clothes to have them washed and/or pressed.
Electrical outlets
Vista’s cabins and suites offer electrical outlets and USB ports on both sides of the bed and by the desk. You’ll find both U.S. 110V and European 220V outlets. Americans may want to bring an adapter for charging devices in public rooms where the outlets are all European-style.
Currency
The onboard currency is the U.S. dollar. The reception desk can change dollars for the local currency.
Drinking age
You must be 21+ to drink alcohol onboard all Oceania cruises. When the ship is in international waters, young adults ages 18 to 20 may purchase and drink beer or wine (as well as the House Select beverage package).
Dress code
Oceania does not have a complicated dress code with specific attire required on certain evenings. Instead, the line suggests “elegant casual resort wear” for evenings and requests that guests do not wear casual jeans, shorts, T-shirts, baseball caps, casual sandals or sneakers in the restaurants after 6 p.m.
For casual dining, choose the Pizzeria or Terrace Café for your evening meal. Shorts and baseball caps are allowed; athletic wear is not.
Elegant casual resort wear translates into date-night dresses (but not full-on cocktail attire), skirts and blouses or dressy pants and tops for women, and collared shirts and slacks for men. Jackets and ties are not required.
During the day, casual attire is fine, but please don’t wear swimwear, bathrobes or pajamas in public areas. You’ll need footwear if you leave the pool deck.
Bottom line
Vista is an elegant mid-size cruise ship that’s the perfect home base for travelers who appreciate dining variety, enjoy interesting cocktails and fine wines and wish to explore the Mediterranean and the Caribbean.
Cabins and suites are thoughtfully designed, though, for longer voyages, you might need to take advantage of onboard launderettes as cabin storage might be tight.
Vista offers a high-end experience on a beautifully designed ship, but you’ll have a choice in how you spend your vacation budget rather than paying upfront for all-inclusive fares.
Finding the right insurance or any insurance at all can be a daunting task when there are pre-existing medical conditions present. It is oftentimes frustrating to find term life insurance as companies tend to flat out deny those with pre-existing conditions or is there is not denial they are placed in a high-risk policy which is oftentimes more costly. Despite these challenges and frustrations, finding insurance with pre-existing conditions is not impossible.
In fact, in just about every case, there are plenty of affordable life insurance options. Even applicants with pre-existing conditions are surprised to see how affordable their policy can be.
What is Your Pre-existing Condition?
The type of pre-existing condition is perhaps the biggest consideration when shopping for new life insurance. From one insurer to the next, the types of policies for people with certain conditions will vary. Life insurance companies rate conditions differently based on the level of risk they believe are associated with it.
When considering conditions such as cancer, many insurance companies may not accept that level of risk since there is not a long life expectancy associated with these types of conditions. Although this is the case, other considerations are factored in such as whether or not it is in remission.
The main thing that insurance underwriters are considering is how threatening the condition is to the life of the policyholder so obviously, there are usually multiple variables at play. The good news is that insurance companies are adapting and changing with medical advancements. When it may have been impossible in the past to receive insurance with pre-existing conditions, insurance companies recognize that certain conditions can be treated or slowed due to new research and technology.
Avoid The Fuss With No Medical Exam Life Insurance
Another great option is a no medical exam life insurance policy. If you have not been previously diagnosed with a condition, this may be a great option. Although these types of policies usually run at a higher premium, the coverage is usually guaranteed and the policy coverage varies slightly from a standard term life policy. Despite the guaranteed coverage it is a good idea to disclose any medical conditions you may have.
In today’s market, there is far more competition in terms of top-rated life insurance companies. Because of this, they are oftentimes aggressive in the risks that they take. For this reason, you need to shop around or even work with a professional who can point you in the right direction.
These policies of course usually come at a higher rate but it is a good option still for those who may have been denied by a more traditional life insurance provider.
Ads by Money. We may be compensated if you click this ad.Ad
It’s Best to Compare Between Different Insurance Companies
Perhaps the biggest factor related to a pre-existing condition that there is no way around is the higher cost. Insurance companies need a way to compensate for the additional risk. However, many companies will treat certain conditions differently than other. For example, there are some companies that view conditions like diabetes more favorably than others. With some companies, if you have well-controlled type 2 diabetes, you could get great rates, but other companies are automatically going to skyrocket your rates because of the diabetes diagnosis.
The best course of action is to be proactive with your condition and try to manage it the best way that you can. Insurance companies have been known to consider these types of things and reduce your premium over time as it is demonstrated that you are getting your condition under control.
Thankfully for advances in the medical community it is no longer the case that pre-existing means denial. It is still a good idea to shop around and find the best fit for your particular condition. Spending the extra time up front can save you a lot of money in the long run and the peace of mind that comes with knowing you are insured is invaluable.
The benefits of finding the perfect company are obvious, lower insurance rates. But finding the right company isn’t as easy as that. This is why you need an expert, like our independent agents. Not only can they represent several different companies, but they are also knowledgeable about the different companies and which one will view your pre-existing condition more favorably.
Getting the Lowest Rates Possible
We just mentioned a great way to get lower monthly rates, by working with an independent agent, but that isn’t the only way.
The first thing is to do is improve your health. Sure, you have a health problem, it’s going to impact your monthly rates, but there are still some health factors that you can improve to get a better classification from the insurance company.
The best thing you can do is to shed a couple of pounds. The majority of life insurance applicants are keeping a few more pounds than they should, and losing that weight could have an extremely beneficial impact on your insurance plan. Start a healthy diet and exercise program, it will save you money.
Deciding how much Life Insurance you need
The next most important decision is determining how my life insurance coverage you’re going to need. The bigger your policy, the more you’re going to pay for your coverage.
If you don’t have enough coverage, you could leave your loved ones paying for all of those debts you would leave behind. How are you supposed to know if you have enough coverage? There are several different questions that you can ask yourself to ensure that you’ve bought a large enough life insurance policy.
The first question is, “how much debt would I leave behind?” Before you buy a plan, make sure the policy will provide enough protection. Make sure that you add up your mortgage, car payments, credit card bills, student loans, and anything else your loved ones would be responsible for paying.
The other questions that you have to ask is, “how would my family suffer if they lost my salary?” the other main purpose of life insurance is to help your family find a way to replace your annual income. Your family could have a difficult time finding a way to permanently replace that income without experiencing serious financial strain.
I remember starting my career as a young adult, I had a lot on my plate, working my 9 to 5, paying off my student loans, and hoping to find my future spouse.
One of the last things on my mind was buying life insurance. I could almost guarantee that for all young adults buying life insurance is the last thing on our minds.
So the question remains, “Should young adults consider buying life insurance?”
The cop out answer is: it depends.
A lot depends on where you are in your life and what where you plan to be in the next few years. If you are a young adult considering buying life insurance, here are some things to consider.
Remember the Hand That Feeds You
In retrospect, I regret not buying life insurance when I was a young adult. Sure, I was single and I didn’t have any dependents, but my parents didn’t have a lot of income and a lot of financial stability. If something happened to me and they had to pay for my funeral expenses, it would have affected them greatly.
In fact, it would have been so great that I honestly don’t know how they would paid for it. Getting a cheap term policy would have cost me less than $10/month and my parents would have been unscathed financially if something happened to me.
If you are single, you might not think that you need life insurance but don’t forget about the ones that raised you.
Life insurance is very inexpensive and even if you took out a small $50,000 to $100,000 policy, you would be paying less than 2 values meals at McDonald’s a month for coverage. It is the responsible thing to do and it won’t drain your checking account like one would think.
If you’re in the same boat that I was in, single with no dependents, you probably think the same thing I did, that life insurance would be a waste of time.
But before you automatically discount it, talk to your parents about the possibility of something tragic happening and what kind of financial suffering they would experience if you were to pass away.
What About Debts?
It seems nowadays that parents are helping their kids more and more getting through school and getting their career started. I wasn’t one of those lucky ones, but my wife was.
Her parents sacrificed funding their retirement fully to pay for their daughters tuition and cost of living while at school. Imagine if something happened to her and now all that money on books and fees is literally flushed down the toilet.
If she would have had bought cheap life insurance, her parents would have been replenished all the money they had invested into her college education.
But, just because you’re a young adult doesn’t mean that student loans are your only debt. This is the stage of life when you’re going to start looking to buy a house, right? Even if you don’t have a mortgage right now, look a few years in to the future.
A couple years down the road you could buy your first house, which means that you’re responsible for your first mortgage. If you were to pass away with that mortgage, guess where it’s going? Straight to your family.
Ads by Money. We may be compensated if you click this ad.Ad
When Shouldn’t Young Adults Buy Life Insurance?
If you are debt free, your parents haven’t handed you the silver spoon and you are not married, then buying life insurance isn’t necessary. At least not yet. When you do start your family, that’s when life insurance should become a priority.
Also, don’t buy your life insurance through your employer (unless you have a pre-existing condition). The price is usually about the same buying it through a third party, plus you won’t have to worry about getting life insurance again if you change jobs.
Life Insurance Is NOT Expensive
Some of the major benefits of buying life insurance when you are young is that it is super, super cheap, as mentioned above. The younger you are, the lower your costs are going to be in paying for your life insurance.
Going from your 20’s to your 30’s or 40’s, you can generally see a 20% to 25% increase in premium.
Compound this with the fact that when you are younger, you are super healthy and probably still find time to work out five days a week, which further increases your changes of locking in a low rate.
Getting The Best Life Insurance Rates
Yes, as a young adult, life insurance is going to be cheap. Very cheap. But this is the premium that you’re going to be paying for many years to come, so you want to get the best rates that you can.
You have one of the biggest advantages of finding cheap life insurance, your age. Your age is the biggest factor in determining how much you’re going to pay for your coverage, buying coverage at 20 is much more affordable than purchasing life insurance over 50 years old, but it’s not the only one.
You can’t do anything about how old you are (trust me, you can’t stop it), but there are some factors that you can change and save money on your insurance plan.
The next biggest factor that the insurance company is going to look at is your health. They will look for any pre-existing conditions and your overall health to determine how much of a risk you are.
The higher your risk level may be, the more they’re going to charge you for insurance coverage. If you want to save money on your monthly premiums, spend a couple months improving your health.
After you complete the initial paperwork for your policy, the insurance company is going to send a paramedic out to complete a simple medical exam to determine what kind of health you are in.
During this exam, the paramedic is going to take your blood pressure, cholesterol, take a blood sample, and also a urine sample. These results are going to play a role in what kind of ratings you get.
If you have are carrying a few more pounds than you should, it’s time to trim down that waistline. Being overweight increases your chances of having health problems later in life, like diabetes or heart complications. It’s time to actually use that gym membership that you’ve been paying for.
Additionally, if you’re a smoker or tobacco user, it’s time to kick those bad habits once and for all. If you’re listed as a smoker on your life insurance application, you’re going to be looking at double or triple the monthly premiums of a non-smoker.
Sure, that could only raise your premiums by $20 or $30, but once you calculate that out through the course of the insurance policy, it adds of to some serious cash.
The best way to ensure that you get the best rates is by comparing dozens of companies before you choose the plan that works best for you. Each company is different and is going to view your applications differently. It’s vital that you receive quotes from several different companies before you choose the one that works best for you.
Digital nomads enjoy the freedom and flexibility of being able to work from anywhere with an internet connection, allowing them to balance work and leisure in a way that suits their lifestyle. They travel frequently, often staying in one place for a few weeks or months before moving on to the next destination.
However, expats and digital nomads face unique challenges when it comes to managing their finances. They need a bank that understands their lifestyle and offers services that cater to their needs.
For example, digital nomads require a bank that offers low fees and transaction charges since they frequently move money across borders. They also need a bank that provides easy access to their accounts from anywhere in the world, with mobile banking features that allow them to make transactions on the go.
10 Best Banks for Digital Nomads
Without further ado, here’s our lineup of the best bank accounts for digital nomads.
1. Revolut
Revolut is a digital bank that’s headquartered in London. While it doesn’t offer a traditional bank account, its money management app can be a great option. Once you download it, you can make global exchanges with more than 30 currencies and transfer money abroad instantly. Revolut will give you 10 free international transfers per month plus a debit card with cash back rewards.
Also, if you invest in a Premium or Metal plan, you can enjoy additional perks, like travel insurance and access to airport lounges while you wait for your flights. In addition, you’ll get to use 55,000 fee-free ATMs and be able to withdraw up to $1,200 from out-of-network ATMs each month. If you’re interested in a Revolut account, you’ll need to provide a name, address, and ID. The bank does not require a credit check or proof of address.
2. Chime
When most people think of international financial accounts, Chime doesn’t typically come to mind first as it’s a financial technology or fintech company in the U.S. Even though it doesn’t provide a multi-currency account, its cards don’t charge foreign transaction fees and offers free cash withdrawals at ATMs across the globe.
This is great news if you’re looking for an affordable way to cover your international purchases. Chime’s main offerings you might want to consider include the Chime Checking Account, the Chime High Yield Savings Account, and the Secured Chime Credit Builder Visa® Credit Card.
It’s important to note that Chime is designed to be used as a mobile app so it could be a solid pick if you like the idea of mobile banking. The app will send you daily notifications on your account balance and international transactions. Rest assured you can disable them at any time.
3. Capital One
Capital One is one of the largest banks in the U.S. but we had to include it in this list because of its primary checking account, the Capital One 360 Checking. If you consider yourself an expat, often make online purchases from different countries, and would like to avoid a monthly fee or foreign transaction fee, this account can make sense.
You won’t have to pay any transaction fees if you use your card overseas, plus you may open the account without a minimum opening deposit requirement or monthly fees. To reap the benefits of the Capital One 360 Checking, you must be a U.S. resident with a U.S. mailing address and Social Security number.
4. Wise
Wise, which was formerly known as Transferwise, should be on your radar if you do business abroad. The UK-based fintech company will let you create a local bank account that accepts multiple currencies, making it a breeze to meet your digital nomad banking needs. Wise also integrates with popular payment platforms, such as Amazon Payments and Stripe for easy direct deposits.
We can’t forget to mention the Wise borderless account that may be worthwhile whether you’re studying abroad, an expat, or a freelancer with international clients. It comes with low fees and can be accessed by just about anyone. However, Wise is not an actual bank account so you may have trouble receiving direct deposit payments. For this reason, it might be a good supplement to an existing bank account.
To take advantage of Wise, you’ll need a bank or credit card statement, tax bill, proof of address, driver’s license, or government document.
5. Chase
Chase is an excellent choice for digital nomads and expats living abroad due to its global presence and user-friendly digital banking platform. Chase’s online banking system is user-friendly and provides a range of features, including bill pay, mobile check deposit, and international money transfers.
For those living abroad, Chase’s credit and debit cards also offer no foreign transaction fees, making it an affordable option for international travelers. In particular, the Chase Sapphire Preferred and Chase Sapphire Reserve are widely considered to be among the best credit cards available.
Furthermore, Chase Bank provides 24/7 customer service support, ensuring that its customers can get assistance with any issues they may encounter, regardless of their time zone.
6. HSBC
HSBC serves about 40 million customers across 63 countries in Europe, Asia, the Middle East and Africa, North America and Latin America. If you’re an international traveler, you can’t go wrong with the HSBC Everyday Global Account, which makes it easy to make purchases in 10 different foreign currencies with no transaction fees or monthly service fees. It truly offers a fee-free banking experience.
In addition, there are no ATM fees so you can enjoy fee free ATM withdrawals and many promotions throughout the year. HSBC also offers Visa Zero Liability, which can protect you from fraud and give you some much-needed peace of mind. We can’t forget that HSBC offers over 55,000 ATMs, many of which are in the Allpoint network, as well as 24/7 customer support via phone and Twitter.
7. Citibank
There’s a good chance you’ve heard of Citibank as it’s a well-known bank in the U.S. It has a presence in 97 markets and supports clients in more than 160 countries. With the Citibank Plus account, you can manage your money in up to 21 different currencies.
Citibank will waive your maintenance fee as long as you maintain a certain balance and reimburse you for foreign ATM withdrawals when you use ATMs outside its network. Additionally, you may send money abroad quickly and won’t have to pay a penny if you’re sending the funds to another Citibank account. Another great perk is the handy mobile app that offers convenient banking while on the go.
8. Monzo
Monzo is a challenger bank in the UK that’s recently increased in popularity. You can open an account for free, divide it into “pots” to better manage and save your money, and get a free debit card, which can be sent to any address in the UK. You can use it for a variety of debit card transactions and ATM withdrawals abroad.
You won’t pay any fees when you make purchases on your card and can receive a limited amount of free ATM withdrawals every month. Monzo is also compatible with Apple Pay and Google Pay. Plus, there’s a convenient mobile app with useful budgeting tools that may help you take control of your spending. Note that Monzo is fully digital so you can’t count on it for in-person support or local branches.
9. Charles Schwab Bank
You can open a U.S. bank account through Charles Schwab and won’t have to worry about foreign transaction fees or opening fees. Plus, you can enjoy unlimited rebates on international withdrawals.
In the event you move to a different country, you can open another Charles Schwab account but you may have to meet a high minimum deposit threshold. If you need assistance while you’re traveling, you’ll be thrilled to know you can receive it via phone or email.
10. Bank of America
Despite the word America in its name, Bank of America can be a smart option if you’re looking for a digital nomad bank account. In fact, it attracts many frequent travelers.
It serves more than 35 countries and has locations throughout Europe, Asia, and the Middle Each so you shouldn’t have an issue finding a branch near you. Bank of America offers a variety of bank accounts you may find appealing as well as a well-designed mobile app.
Features to Consider When Choosing the Best Bank for Digital Nomads
When exploring different digital nomad banks, consider these features.
Banking Experience
Every financial institution provides its own unique experience. First, think about whether you’d like an online-only bank or one with branches you can visit. Then, think about the size of the bank that would be best for you.
A smaller bank might be a better fit if you prefer personal service as well as better rates and lower fees. A larger bank, however, might make more sense if you’d like access to a wider range of products and resources.
Account Types
Some banks offer a few accounts and banking services while others pride themselves on a long list of offerings, like checking accounts, savings accounts, investment accounts, and many others. To determine the account types you need, think about your goals.
Are you looking for someone to park your cash so you can access it while you’re abroad? If so, you might be in the market for a basic checking account or high yield investor checking account with no foreign transaction fees and ATM fee reimbursement.
If you’re a business owner, you may require additional services like international wire transfers between accounts and countries without paying costly fees.
ATMs and Debit Cards
Chances are you can benefit from a digital nomad bank account with ATM access. If you need to make purchases abroad frequently or every once in a while, you should opt for an account with debit cards that are compatible everywhere. This usually means you’re in the market for a Visa, Mastercard, Discover, or American Express debit card.
Keep in mind that many countries don’t accept cards with magnetic strips so you will need a card with an EMV chip. Ideally, it would also allow for contactless payments, which are quite popular abroad.
Note that while debit card purchases may make sense in some situations, credit cards come with greater protections, which can be helpful if your card gets lost or stolen. If possible, use your debit card at ATMs and credit card every time you make a purchase.
Fees
At the end of the day, you don’t want to be stuck with sky-high fees that deter you from your financial goals. Here are some fees to be aware of as you search for the best banks for digital nomads.
Foreign transaction fees: These fees can kick in whenever you make a withdrawal or purchase in a foreign currency. Your bank might charge them all the time, in certain situations, or not at all.
ATM fees: If you need to withdraw money from an ATM, you may be on the hook for ATM fees. The chances of this are higher if you opt for an out-of-network ATM. The good news is some banks offer free withdrawals or will reimburse you for ATM fees while you’re abroad.
Monthly maintenance fees: You may face a monthly maintenance fee or service fee to keep your account open. Typically, the more features your account has, the more expensive this fee will be. Fortunately, some banks pride themselves on low banking costs and zero monthly fees.
Interest Rates
Depending on what you plan to do with the bank account you open, interest rates may or may not be important. If your sole purpose is to get easy access to cash while you’re traveling to a different country, interest rates probably aren’t a big deal. But if you’d like to use your account for saving or investment purposes, a higher rate is ideal. The higher the rate, the easier it will be for you to meet your goals.
Security
Security should be a top priority when you explore digital nomad bank accounts. Reputable banks have certain account holders protections in place for if your debit or credit card gets lost or stolen, for example. They also make it a breeze to report fraudulent activity from anywhere.
Some banks also have a security feature known as two-factor authentication. This requires you to use your password and a special code you receive via call or text every time you log in. It provides extra security in the event your device gets lost or stolen.
Customer Service
In a perfect world, you’d never have any questions or issues with your bank account. Since this is unlikely, you shouldn’t overlook the importance of customer service. The bank you choose will determine how easy or difficult it is to receive assistance.
If you can, opt for a digital bank with 24/7 customer service. Otherwise, you may get stuck if you have an urgent need and customer service is only available during select business hours.
Reviews
If you visit a bank’s website, you’ll find no shortage of information on its benefits and why you should become a customer. However, one of the best ways to determine whether a bank account is worth it is through customer reviews. Do your due diligence and read real reviews on reputable, third-party websites.
Also, look at ratings on websites like the Better Business Bureau (BBB) to get a better idea of a bank’s reputation. If you notice a lot of negative reviews and poor ratings, you may want to look elsewhere.
Online Banking Features
As a digital nomad, you’ll likely be doing a lot of your banking online. Look for a bank that offers robust online banking features, such as the ability to view account balances and transaction histories, transfer funds, and pay bills online.
Bottom Line
Choosing a good bank is essential for digital nomads who need access to their money while traveling the world. With the right bank, you can manage your finances easily and efficiently while enjoying the freedom of a location-independent lifestyle.
Frequently Asked Questions
What is a digital nomad?
A digital nomad is someone who works remotely and has the ability to work from anywhere in the world as long as they have an internet connection. They often travel frequently and have a location-independent lifestyle.
Why do digital nomads need a specific bank?
As a digital nomad, you’ll need to find a bank that caters to your specific financial needs; one that offers easy online access, enables low-fee transactions, and facilitates international transfers without hefty costs. Traditional banks may not be able to provide you with these services, which is why it’s important to investigate other options.
What is the best bank for digital nomads and expats?
There is not one bank that checks off everyone’s boxes. The right option for you depends on your goals. You may choose an account that allows for easy money transfer abroad. Or you may prefer one that eliminates foreign transaction fees. It’s up to you and what you hope to accomplish.
How can I avoid transaction fees when banking as a digital nomad?
To avoid transaction fees when banking as a digital nomad, you should look for a bank that offers fee-free ATM withdrawals and has low foreign transaction fees. You may also want to consider using a debit or credit card that doesn’t charge foreign transaction fees.
Do I need to have a permanent address to open a bank account as a digital nomad?
You do not necessarily need a permanent address to open a bank account as a digital nomad. Some banks allow you to use a post office box or a friend’s address as your mailing address. You may also be able to use a virtual mailbox service.
Can I open a bank account in a foreign country as a digital nomad?
Most countries prohibit non-residents from opening bank accounts. You’ll find that you’ll likely need a local mailing address. Unfortunately, financial institutions don’t typically accept hotel or short-term rental addresses.
Can I use my digital nomad bank account for personal transactions?
Yes, you can use your digital nomad bank account for personal transactions. However, it’s best to keep your business and personal finances separate to make accounting and tax reporting easier.
Will my digital nomad bank account have all the features of a traditional bank account?
Your digital nomad bank account may not have all the features of a traditional bank account, but it should have the features that are most important for your lifestyle, such as online banking and low transaction fees. Be sure to research the banks you’re considering to ensure they offer the services you need.
What should I do if I lose my debit card while traveling?
If you lose your debit card while traveling, you should contact your bank immediately to report the loss and request a replacement card. You should also carry a backup debit card or credit card in case of emergencies.
What are the best banks for international wire transfers?
If you’d like to make many international wire transfers, there are certain banks with solid bank transfer rules you should explore. Several examples are Bank of America, Chase, Citibank, Wells Fargo, Citibank, PNC, and U.S. Bank.
Boasting a magical blend of culture, history and academia, Wisconsin is home to some of the finest college towns in the country.
From bustling city centers to quaint rural communities, these towns brim with youthful energy and a passion for learning. Let’s embark on a journey to explore some of the best college towns in Wisconsin, where we’ll discover Madison, Appleton, De Pere, Milwaukee and Eau Claire.
As Wisconsin’s capital city, Madison is also home to the University of Wisconsin-Madison, making it the epicenter of collegiate life in the state. This picturesque city benefits from a stunning location nestled between two sparkling lakes and is home to a diverse community teeming with creativity and innovation. As one of the best college towns in Wisconsin, Madison caters to the needs of students, residents and visitors alike, with an abundance of restaurants, shops and entertainment options. From biking and kayaking along the miles of shoreline to perusing the eclectic shops and eateries on State Street, there’s always something to do in this bustling city.
The heart and soul of Madison’s college scene is the iconic Memorial Union Terrace (pictured above), a lakeside gathering spot where students and locals alike can enjoy live music, outdoor movies and delicious local fare. If art and culture are more your speed, don’t miss the Chazen Museum of Art or the Wisconsin Historical Museum. Madison’s rich history and progressive atmosphere make it one of the top college towns in Wisconsin and is perfect for students seeking a well-rounded college experience.
Home to Lawrence University, Appleton is a charming city that harmoniously blends its history with a modern atmosphere. This college town is nestled along the Fox River, where the abundant natural beauty provides a serene backdrop for the city’s bustling downtown area. Appleton’s arts scene, supplemented by the Fox Cities Performing Arts Center and Trout Museum of Art, makes it one of the best college towns in Wisconsin for students with an appreciation for culture and creativity.
Appleton’s picturesque downtown is lined with unique shops, delicious dining options and lively entertainment venues, ensuring there’s never a dull moment. In addition to its thriving downtown, the city’s historic sites, such as the Hearthstone Historic House Museum and the Atlas Science Center, offer a fascinating glimpse into the area’s past. Appleton’s commitment to preserving its heritage while embracing the future makes it a standout among college towns in Wisconsin, perfect for students seeking a blend of old-world charm and contemporary activity.
Located just south of Green Bay, De Pere is a quaint and idyllic college town that’s home to St. Norbert College, a private liberal arts institution. The Fox River meanders through the heart of this cozy community, providing a picturesque setting for students and locals to enjoy outdoor activities like walking, biking and fishing. De Pere’s small-town charm and friendly atmosphere undoubtedly make it one of the most inviting college towns in Wisconsin.
De Pere’s historic downtown district is a treasure trove of boutique shops, cozy cafes and unique eateries, where seasonal students and year-round locals alike can indulge in unique flavors and discover one-of-a-kind finds. The De Pere Riverwalk and Wildlife Viewing Area offers a peaceful retreat from the hustle and bustle and the community’s commitment to the arts is evident in the events and performances hosted at the charming St. Norbert College. If you’re looking for a college town in Wisconsin that offers a tight-knit community and a serene environment, De Pere is the perfect fit.
Affectionately known as ‘Brew City,’ Milwaukee is Wisconsin’s largest city and home to several higher education institutions, including the University of Wisconsin-Milwaukee, Marquette University and Milwaukee School of Engineering. This bustling metropolis is a diverse environment that caters to students seeking an exciting, city-based college experience. Milwaukee’s lively arts and culture, combined with its beautiful lakefront location, make it one of the best college towns in Wisconsin for students craving a dynamic atmosphere while they pursue their degrees.
Milwaukee has a plethora of entertainment options, from the iconic Harley-Davidson Museum to the historic Pabst Theater and so much more. Foodies will find no shortage of delectable dining options, as the city boasts a wide variety of restaurants, breweries and food trucks, serving up everything from traditional Wisconsin fare to global cuisines. Milwaukee’s unique blend of urban excitement and Midwestern charm makes it a standout among college towns in Wisconsin, perfect for students eager to experience city life during their college years.
As a bonus, we’ll introduce you to Eau Claire, a vibrant city that’s home to the University of Wisconsin-Eau Claire. Known for its strong arts and music scene, Eau Claire boasts a rich cultural heritage that permeates the entire community. From the stunning Pablo Center at the Confluence to the numerous music festivals held throughout the year, Eau Claire’s creative spirit makes it a standout among Wisconsin college towns.
The city’s lively downtown area offers a wide variety of shopping, dining and entertainment options for students and locals alike. Outdoor enthusiasts will appreciate the city’s extensive network of parks and trails, including the beautiful Chippewa River State Trail and Putnam Park. Eau Claire’s thriving arts scene, coupled with its commitment to sustainability and community engagement, make it a top choice for students seeking a well-rounded college experience in Wisconsin.
Welcome to your Wisconsin college town
With their rich histories, youthful communities and top-notch educational institutions, these college towns in Wisconsin offer an unforgettable college experience. From bustling cities like Milwaukee to charming small towns like De Pere, there’s a perfect fit for every student in the Badger State.
One of the biggest wealth transfers in history is about to unfold.
That is, it’s estimated that more than $68 trillion in wealth – involving 45 million households across the U.S. – will be transferred through inheritance in the next 25 years.
Will you be one of them?
If you’re a Millennial or a Gen Zer, chances are you may be in the group of Americans most likely to benefit from this massive transfer.
If so, you’ll need to know how to plan for an anticipated inheritance, even if you’re not sure of the details.
What’s Ahead:
1. Have a rough idea of the amount that you are set to inherit
Source: shurkin_son/Shutterstock.com
Though this seems like a simple step, it often isn’t.
Not all parents or grandparents are open about their personal net worth (it’s a generational thing). And asking how much you can expect to inherit – or, if you’ll be inheriting anything at all – can seem presumptuous at best, and greedy at worst.
Some parents and grandparents will be open to this question. Some may even provide the information without you asking. But if that’s not your situation, you’ll need to proceed carefully and delicately.
How do I find out how much I will inherit?
You probably already have an idea of your parents’ approximate net worth, but if you don’t, don’t beat yourself up. After all, it isn’t always that obvious on the surface.
The best way to find out?
Just ask.
If your parents aren’t forthcoming about their finances, you’ll need to step back. That doesn’t mean giving up, however. You can let some time pass, then approach the subject later. Just be sure to frame it in such a way that you’re interested in protecting all they’ve worked so hard to accumulate.
2. Learn what makes up the inheritance
Some estates are very simple, while others can be incredibly complicated. The best scenario is a parent who rents his or her home (no house to sell) and has nearly all wealth sitting in financial assets, like bank and brokerage accounts.
Things get way more complicated when a large share of the estate is held in real estate, and especially investment real estate. More complicated still is business equity.
Collectibles, like jewelry and artwork, can also be problematic. You’ll first need to get a ballpark estimate of the value. But before they can be sold, they may need to be formally appraised.
Just as important, your parents may prefer to pass real estate, business interests, or collectibles to specific individuals. That may or may not include you, which is something you need to know before you plan to inherit them.
3. Know if there are other beneficiaries
Source: Motortion Films/Shutterstock.com
This is as delicate an issue as requesting the value of your parents’ estate. If you are the sole beneficiary, it’s a non-problem. But if there are siblings, or others your parents may want to distribute assets to, the waters can get a bit muddy.
In a perfect world, your parents will set up an equal distribution for you and your siblings. But real life isn’t always so simple.
For reasons known or unknown to you, your parents may choose unequal distributions. This can be due to family politics, like one sibling being favored over the others, or one sibling being closer to your parents than others. In some situations, parents may choose to give a larger share to a child who provides for their direct care in their later years.
There may still be other situations where your parents want to make special provisions for one of your siblings or even a grandchild.
Yes, it can get worse!
But those aren’t even the most complicated beneficiary situations.
Given that divorce is common, and often involves a second set of children, there may be issues and limitations.
In some extreme situations, parents may disown one or more children, and exclude them from the inheritance. If that might be you, you’ll need to know.
Finally, complicated family situations can result in probate. That’s where the estate has to go before a judge prior to distribution. This can happen because of the nature of the family situation, or because one or more potential beneficiaries (or even an excluded party) challenge the distribution of the estate proceeds.
If that situation seems likely, it’s one that should be discussed with your parents. They may need to set up a trust to ensure each beneficiary gets the intended distribution so the estate can avoid probate.
4. Understand the intended distribution process
This primarily has to do with the timing of inheritance distributions. While the conventional distribution method is to distribute all beneficiary shares on a common date when the estate is settled, that’s not always the case.
Parents sometimes arrange to have estate assets distributed gradually.
For example: if one or more beneficiaries is considered to be irresponsible with money, the parents may set up a staggered distribution over a period of several years.
A staggered distribution is often accomplished through a trust. If your parents have set up a trust, either for part or all of the estate, you’ll need to know of its existence, as well as the intended distribution.
Some trusts are even more specific
For example, they may include provisions that will distribute funds based on certain milestones. Common examples include holding distributions until the beneficiary turns 30 (or some other age), or gets married (or divorced, if the marriage is shaky).
Trusts can be amazingly specific, which is why people set them up. That’s also why you’ll need to know any distribution method that will be used.
Some estates may also have provisions to make staggered distributions based on asset types.
For example: cash-type assets may be distributed early in the estate process. But real estate and business interests may not be distributed until they have been liquidated.
5. Estimate your personal finances at the anticipated time the inheritance happen
Source: Prostock-studio/Shutterstock.com
A big part of how you handle an inheritance will be determined by your own financial situation.
If you already have a sizable personal estate, you may be able to simply fold the inheritance into your existing plan. But if your finances are limited, you may need to be more intentional and figure out what you’re going to do with the inheritance when it arrives (ya know, so you don’t blow it all on a bright red Mustang).
The point is, only when you have a clear picture of your own finances can you make the best use of an inheritance. And to get the greatest benefit, it can help to improve your finances before you receive the money. The better positioned you will be when the inheritance comes in, the more flexibility you’ll have in choosing where to allocate the money.
If you’ve not been investing up to this point, you may want to begin before the inheritance comes in. It’s best to get investment experience with a small amount of money, so you don’t risk losing your windfall through poor investment choices.
Read more: Best Investment Accounts For Young Investors
6. Design a plan (aka what to do with the inheritance)
If you already have your own personal financial plan, planning for an inheritance will be much easier. But even if you do, you should have at least a loose plan for what to do with the new money. The worst choice is holding off until the inheritance is received. Without a solid plan, you may quickly draw down the new money, financing a series of wants.
Having a plan for the inheritance will ensure the money will provide for a better future. To learn how to set up a financial plan, check out our article: What Is A Financial Plan And Why Do You Need One?
Decide what your priorities are
The main purpose of a plan is to set up a series of priorities.
For example: if your retirement planning isn’t where you want to be, you can make it a priority to fix that with the inheritance. You can either use the new money to enable you to make larger retirement plan contributions or plan to set up an annuity specifically for retirement.
Take advantage of annuities
One of the advantages ofannuitiesis that they can be used to shore up an adequate retirement plan.
Read more: What Is An Annuity And Should You Consider One?
The investment earnings on annuities accumulate on a tax-deferred basis, like retirement plans. But the major advantage is that there are no limits to your contributions. You can make a single, large lump sum contribution to an annuity and let it grow tax-free until retirement. You can set a date that distributions will begin, which can even cover the rest of your life.
In addition, Dr. Guy Baker, CFP and founder of Wealth Teams Alliance, also points out:
“Annuities are a fixed-income alternative. The opportunity to get a market return with no downside risk can be dramatically better than the income from an investment-grade bond of comparable risk. The amount to put into an annuity should coordinate with the age of the beneficiary and the investment objectives. In general, an indexed annuity can provide significant benefits for no additional risk.”
However, since annuities are complicated instruments themselves, you’ll need time to do research and evaluate the best one to take. That’s best done in advance of receiving an inheritance.
Consider starting your own business
In a different direction, maybe you’ve been dreaming of starting your own business. If you lack the capital to do that up to this point, the inheritance can make it happen.
In the meantime, you can make preliminary plans for the business, andeven get it up and running as a side hustle. When the inheritance arrives, you’ll have an established business to grow, rather than starting a new one from the ground up.
Starting a business is always risky, though, so make sure you carefully consider such a big move if/when you do receive an inheritance.
Read more: How To Start Your Own Business – A Complete Step-By-Step Guide
7. Find out if there will be tax consequences
Source: Southworks/Shutterstock.com
You’ve undoubtedly heard the saying,
“the only things certain in life are death and taxes.”
Well, guess what? Sometimes the two happen at the same time.
Officially, they’re called inheritance taxes. Because estates can contain a lot of money, governments view them as rich revenue sources. Just like they tax your income, your home, your utility bills, and even your purchases, there are taxes designed to snatch a part of an inheritance before you receive it.
There’s good news and bad news here.
Let’s start with the good news…
There is a federal inheritance tax, but the good news is that it only applies to very large estates.
Under current IRS regulations, estates that transfer from one spouse to another are generally tax exempt. But even when they pass to other beneficiaries, like children and grandchildren, there’s a federal estate tax exemption of $11.7 million, for 2021.
That means if the total value of the estate (before distribution) doesn’t exceed $11.7 million, there’ll be no federal tax on the inheritance.
Now for the bad news…
18 states impose some type of state-level inheritance tax. And while some of those states match the federal estate exemption, there are no fewer than 13 with lower exemptions.
On the low-end, Massachusetts and Oregon can tax estates as low as $1 million. Rhode Island sets the threshold at $1,595,156.
Not many Americans have a net worth of over $11.7 million. But there are many millions with estates of $1 million or more. Even if you’re not affected by the federal estate tax, you may be subject to it at the state level.
If any of the estate tax thresholds may apply in your situation, whether at the state or federal level, you’ll need to be prepared for this outcome.
So make sure you estimate for a lower inheritance
The best strategy is to estimate a lower inheritance, based on applicable estate tax rates. Fortunately, the estate will pay the inheritance tax before the money is distributed. But you still need to be prepared for a lower distribution amount.
If your parents are open about your inheritance, you may even be able to discuss the tax consequences with them. That way they’ll be in a position to take action to minimize them before the fact.
8. Decide if you’ll need a financial planner
If you believe your net worth is too small to justify a financial planner right now, you may change your mind when you receive a large inheritance. But you don’t have to wait until the inheritance arrives to at least consult a financial planner.
If you know the approximate size of your inheritance, paying for a meeting with a financial planner may be money well spent. The financial planner can help you to make decisions to both set up your current finances in anticipation of the inheritance, as well as to make intelligent decisions when it actually comes.
The financial planner may also provide ideas you may want to convey to your parents. They’re often unaware of strategies that will minimize inheritance taxes, or create a strategic plan for a more successful distribution of the estate.
In addition, if there may be questions surrounding the estate, perhaps involving the children of a previous or subsequent marriage, the financial planner may recommend consulting with an estate attorney.
The more you can do in advance, the less likely it is you’ll be blindsided when the inheritance arrives and the stakes are higher.
Read more: Are Certified Financial Planners Worth The Money?
9. Decide if you’ll need a trust
Source: Alla Aramyan/Shutterstock.com
If you don’t have one now, receiving a large inheritance might make a trust advisable. It may even be completely necessary if the inheritance is particularly large, or if you yourself have children from a previous marriage.
A trust is a way to protect your assets, and to ensure the money is distributed as you wish upon your death.
Shawn Plummer, CEO of The Annuity Expert, explains further:
“You may need a trust if you want to specify how your assets will be distributed without a probate court getting involved. While a will can achieve a similar purpose, wills have to be authenticated by a probate court and can require more time and money.”
Just as important, a trust has the potential to protect your assets from seizure by creditors, or from litigation. With the larger personal estate the inheritance will create, you may need just that kind of protection.
And don’t worry, you won’t need to pay an arm and a leg to get these documents drawn up. Trust & Will offers estate planning help with plans starting at just $39. This can help you avoid racking up a high bill with an estate planner.
Summary
You’ve probably known of situations where someone came into a large windfall, only to be broke a few short years later. Unfortunately, it’s not an uncommon outcome.
The sudden arrival of a large amount of money can cause an unprepared recipient to blow what could be a life-changing opportunity. It could have the potential to dramatically improve your finances and your life.
You’ll need a plan to make that happen, and it’s never too early to start drawing one up.
Lately, my dad’s been praising the benefits of having a health savings account. This year, he had the opportunity to get the most of his HSA — bad news for his health, but good news for his wallet (side note: Dad is now doing OK health-wise). If you have one or are considering one, here are all the HSA pros and cons to consider.
But first, if you are looking for the 2016 and 2017 annual contribution limits for HSAs, here you go:
2016: $3,350 if you’re an individual and $6,750 if you’re saving for a family.
2017: $3,400 if you’re an individual and remains unchanged at $6,750 for families.
I’ve spent time researching, calculating and mulling over whether an HSA is the best option for me. After a few conversations with Dad, I decided to put together a pro and con list to help me both understand HSAs and decide if I should open one.
First, the basics:
What is an HSA?
An HSA is a highly tax-advantaged account that lets you save money for health-related expenses. It’s essentially like an IRA or a savings account for your health. And, after you turn 65, it’s even more similar to an IRA, because you can take out money for non-health expenses.
Who Can Get an HSA?
An HSA is always tied to a High Deductible Health Plan, or HDHP, and many will get them through work. A survey by the Kaiser Family Foundation revealed its mostly larger employers that offer HSAs: Fifty-two percent of firms with 1,000 or more workers offered this type of plan while only 25% of firms with 3 to 199 workers did. What’s most important to know here is that you can’t have an HSA if your health care comes from an HMO or a PPO — it has to be a high-deductible health plan. The IRS defines HDHPs this way:
“For calendar year 2016, a ‘high deductible health plan’ is … a health plan with an annual deductible that is not less than $1,300 for self-only coverage or $2,600 for family coverage, and the annual out-of-pocket expenses (deductibles, co-payments, and other amounts, but not premiums) do not exceed $6,550 for self-only coverage or $13,100 for family coverage.”
This should not be confused with a flexible spending account or FSA which can be used in conjunction with a traditional HMO or PPO.
Related >> Readers share their experiences with HSAs
Pros of Opening an HSA
Flexibility of Uses
You can use money from your HSA to pay for a slew of health expenses, from contact lenses to acupuncture, mental healthcare or a midwife. You might be surprised at some of the things you can buy with your HSA money. HSA Center has a complete list of eligible purchases.
Tax Incentives
The money you put in the HSA is tax-deductible. Also, the money you withdraw isn’t federally taxed, as long as you spend it on approved, health-related stuff. The HSA’s interest income isn’t federally taxed, either.
No ‘Use-It-or-Lose-It”
Unlike a Flexible Spending Arrangement or FSA, dollars in your HSA can rollover year to year.
You can Earn Interest
I think the amount of interest I earned recently was something like six bucks. So my initial reaction is whoop de do, but my frugal side reminds me that every little bit helps.
Responsible Planning
The most obvious benefit of the HSA is that you’re funding the future. You’re being responsible. The HSA is an emergency fund for your health.
You Can Take It With You
With an HSA, you can take your balance with you if you leave a company. And if you really hit tough times, you can even withdraw the HSA money to pay for non-health expenses. Of course, you’ll be taxed on that — plus, you’ll pay a penalty.
Related >> Health insurance options for the self employed
Retirement Advantage
After age 65, you can use your HSA savings as retirement money. You’re free to spend it, penalty free, on non-health expenses.
Free Preventive Procedures
Wellness procedures — breast exams, cancer screenings — are usually not subject to the HSA-compatible plan’s deductible. Those office visits are covered before the deductible, and often, they’re free. Of course, many traditional insurance plans have that same benefit.
Cons of Opening an HSA
Restrictions
There are limits to how much you can save. For 2016, you can only sock away $3,350 if you’re an individual and $6,750 if you’re saving for a family. In 2017, the contribution limit rise to $3,400 if you’re an individual and remains unchanged at $6,750 for families. Also, you can’t use money from your HSA to pay for your health insurance premium — unless you’re unemployed.
Cost of Office Visits and Prescriptions
I compared my traditional Blue Shield plan with their HSA-compatible plan, an HDHP. With the HSA, I’d be responsible for paying the full amount of doctors’ visits and prescriptions — until I met the deductible. But the deductible is $6,000 — I’m probably not going to reach that. If I have a couple of non-preventive office visits and prescription expenses a year, the HSA plan would end up costing me several hundred bucks.
Compared to my traditional plan, which requires that I pay $35/visit and $10/prescription (before the deductible), I could actually be spending more for the HSA plan — even considering the tax savings. I suppose it depends on what health issues arise and how much I’m willing to contribute.
Fees
Unsurprisingly, like any other bank account, an HSA comes with its share of fees. They vary, but from my research, most seem to have a start-up fee, transaction fee, debit fee, and in some cases, a monthly maintenance fee. Some may even have a minimum account balance fee.
State Tax
Even though the federal government allows deductions of HSA contributions, a few states don’t follow suit. Please check on your state’s policy before making any decisions on the tax merits of an HSA. Here’s one list of HSA policies by state to consider.
Not Meeting the Deductible
In all, the health expenses you may have to pay with an HSA plan could outweigh the tax savings. For example, one reader mentioned that the amount he pays in his prescriptions for the year makes the HSA not worth it. If the deductible isn’t being met, I can understand that. This seems to be one of those “it depends on the situation” scenarios.
But of course, it’s not just about tax incentives — the point of the HSA is also to save for the future. In the end, that seems to be what it comes down to, whether you’re using an emergency fund or an account with tax incentives. In my dad’s simple but shrewd words: “The bottom line is: save, save, save — as much as possible. Trust me, you will need it .”
If you’ve passed on an HSA, why wasn’t it worth it to you?