Airbnb’s CEO Brian Chesky has gone full Willy Wonka.
I was watching him at a live press event, describing the company’s over-the-top new “Icon” experiences. This program includes a full-scale replica of the colorful house from the Pixar film “Up,” which his team lifted over the New Mexico desert with an enormous crane.
Chesky explained that regular houses can’t be lifted like that, so a special team of structural engineers had been hired to make sure the replica wouldn’t break apart on liftoff.
The flying “Up” house won’t make money for Airbnb or its shareholders anytime soon. It can be booked for $0 by fans who write the most compelling notes for why they want to stay there. All eligible entrants will be placed into a drawing, with up to 20% chosen at random as finalists.
From there, Airbnb has partnered with a third-party company to review answers. The “winners” will be notified of their successful booking with — you guessed it — a golden ticket.
I was ready to dismiss Chesky’s Wonka-ish stunts as the fever dream of a billionaire who had grown profoundly tired of dealing with his platform’s real-world problems, including restrictive local regulations, guest horror stories and the proliferation of corporate megahosts.
But then he said something that struck a nerve in my cold, cynical heart.
“As life becomes increasingly digital, what we’re focused on is creating more magic in the real world,” Chesky said. “The best way to experience Icons is not on a screen, it’s not even in a presentation — it’s in real life.”
It’s true. The best thing about Airbnbs is that they are real things in the real world — not images or reels shared by strangers in the digital swamp. At its best, Airbnb offers an antidote to social media: meaningful in-person connections with family and friends.
And that’s why we get so annoyed when it falls short of its potential.
My rom-com relationship with Airbnb
Yet, like the protagonist in a romantic comedy, all my complaining about Chesky’s short-term rental platform veils an obvious truth: I actually love it.
I’m not alone. The short-term rental industry, which Airbnb dominates, nearly doubled its share of the lodging market between 2018 and 2023, according to a 2023 report from AirDNA, a short-term rental analytics company, and STR, a hospitality industry analytics service.
Far from the “Airbnbust” some predicted, vacation rentals are more popular than ever.
As Chesky explained his reasons for meticulously re-creating a computer-generated movie in the real world, it became clear why we’re all so invested in the platform and harbor such strong feelings about it.
We yearn to connect with real people in real houses.
Reflecting on my favorite memories with family and friends over the last decade, so many stories begin with, “Remember that time at the Airbnb when …” Even my not-so-great Airbnb rental experiences — like when my friends and I cowered in the basement all night to avoid a loose bat — become treasured tales of mutual hardship.
Lost in the media hoopla around Chesky’s flying house was a quieter product launch: new tools to help groups find and book properties together, including shared wishlists and trip invitations. It’s clear that Chesky’s heart is in the right place, and he knows what Airbnb can be at its best. But the pressure of earning profits has clouded that vision.
The profit pickle
Less than two decades ago, Chesky and his co-founders created Airbnb as a way to solve two parallel problems:
Many people had guest bedrooms and vacation homes that, much of the time, went unused.
Many travelers were looking for affordable lodging options beyond hotels.
By setting adventurous travelers up with otherwise unused spaces, the platform was creating a win-win situation. Guests got what they wanted and hosts earned some extra money to pay their mortgages.
Then, an unfortunate thing happened: Airbnb became extraordinarily popular.
More than 1.5 billion guests have now checked into Airbnb properties, according to the company — more than 18% of the entire world population. This success has bred a new kind of Airbnb host, one who wasn’t interested in sharing a basement room for a few bucks: institutional investors.
More than 30% of short-term rental listings in the U.S. are now listed by hosts with 21 or more properties, according to May 2023 data provided by AirDNA. That’s compared with 26% of listings from single-property hosts.
From a business standpoint, this all makes sense. There’s money to be made in buying single-family homes and converting them into short-term rentals, so that’s what has (and will continue) to happen. But for those of us who see Airbnb as a way to connect with friends and family, it’s a catastrophe.
“Saturday Night Live” recently skewered the “bland, generic, downright uninviting” interior design of these megahost properties, but it’s about more than uninspired wall art. It’s hard to make meaningful memories in a home that doesn’t feel like a home.
Holding out hope
At some level, I think Chesky wishes he could put the Airbnb genie back in the bottle (though probably not his fortune) and go back to the days when it was making life more enjoyable for backpacking cheapskates.
That won’t happen anytime soon, so he has turned his attention to more interesting projects, like making houses fly.
I still think Airbnb can be better.
By regulating itself (rather than putting the onus on local governments), the platform could limit how many properties a host can run and give preferential treatment to real hosts listing real homes. It could also do more to build and support local communities rather than extract maximum profit from them.
Chesky may have moved on to shinier toys, but I’m still rooting for Airbnb.
(Top photo courtesy of Airbnb)
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
Everybody loves a relaxing vacation, but the chaotic nature of an airport terminal can induce anxiety in even the most zen of travelers. Loudspeaker announcements, beeping golf carts and crying children create a cacophony — wouldn’t it be nice to wait for your flight in a peaceful environment instead? Enter airport lounges.
Hanging out in an airport lounge before a trip or on a long layover can enhance your travel experience by a mile. And these havens aren’t just for those flying in fancy cabins.
What are airport lounges?
Airport lounges are quiet areas inside the terminal where passengers can relax before a flight or during a layover, eat snacks, work using the lounge’s Wi-Fi network, and sometimes even shower. Typically only paying members, passengers flying in business or first class, or cardholders of certain travel cards are allowed access. Here’s how to get in to airport lounges.
How to get in to airport lounges
There are six ways to get access to airport lounges.
1. Fly in a premium cabin
One of the most reliable ways to get airport lounge access is to fly in first or business class (typically on international routes and select transcontinental flights). This may sound like an expensive way to access a lounge, but if you purchase your flight with airline miles, your ticket still grants you entry to a lounge — either the one for your carrier or for one of its partners.
2. Reach elite status with an airline loyalty program
Frequent flyers are typically rewarded for their loyalty, and if you fly enough with one carrier or multiple carriers in the same alliance, you can enter airline lounges when flying on select routes.
For example, Executive Platinum, Platinum Pro or Platinum elite members of the American Airlines AAdvantage program can enter an Admirals Club on departure or arrival on qualifying international flights operated by American or Oneworld partners, even if they fly economy — and they can bring one guest with them.
Additionally, if you reach status with an alliance, which usually requires earning status with a specific airline, you’re able to get free airport lounge access when flying on a member airline.
3. Purchase a day pass
Another option for accessing an airport lounge is to pay for it.
United Airlines sells one-time passes that allow you to enter a United Club a single time, either before your flight or on a layover. Alaska Airlines also sells single-entry passes to passengers wishing to enter an Alaska Lounge. American Airlines sells day passes that are valid for 24 hours and allow you to enter multiple Admirals Clubs within that period.
Here’s how much airline lounge access will cost you with the following carriers:
Alaska — $60.
American — $79 or 7,900 AAdvantage miles.
United — $59.
Delta Air Lines no longer sells single-visit passes to Delta Sky Clubs, and annual membership is available to Medallion members only, meaning holding certain credit cards is the only way to access Delta lounges for general SkyMiles members (more on that later).
4. Purchase an annual membership
If you’re a frequent traveler, buying an annual lounge membership instead of repeatedly buying day passes can make sense. Of course, the value will depend on how often you fly with that specific airline.
Let’s take a look at how much an annual airline lounge membership will cost for individual, non-elite status flyers.
Alaska — $550.
American — $850 or 85,000 AAdvantage miles.
Delta — $695 or 69,500 SkyMiles.
United — $650 or 85,000 MileagePlus miles.
So, for example, if you’re going to fly round-trip with United six times in a year (12 individual flights), buying a day pass to the lounge each time would cost you $708 total ($59 x 12); an annual membership at $650 would be a better deal.
5. Present your military ID
Sometimes, being a military member can get you access to airport lounges. For example, the USO airport lounges are designed for active-duty service members and their families who are stationed around the globe.
Additionally, some airline lounges, like Admirals Clubs, offer complimentary access to U.S. military personnel in uniform traveling on American Airlines flights. United also provides complimentary access to U.S. military personnel at its United Club locations.
6. Open a credit card with airport lounge access
Many premium cards on the market offer some kind of lounge access to cardmembers. Premium co-branded airline cards typically offer access to the respective airlines’ lounges, and bank cards typically offer access to their own lounges and to lounges in the Priority Pass network.
Travel cards that give you lounge access
Let’s take a look at some of the best credit cards with lounge access.
Co-branded airline credit cards
Citi® / AAdvantage® Executive World Elite Mastercard®
By paying the $595 annual fee for the Citi® / AAdvantage® Executive World Elite Mastercard®, you get access to the Admirals Club without having to pay the annual membership (a $255 savings), plus you get all of the other cardmember perks.
Standout perks include getting the first checked bag free for up to nine passengers booked on the same reservation, Global Entry or TSA PreCheck credit of up to $100 every four years, a 25% savings on in-flight purchases, and the opportunity to earn AAdvantage miles on purchases made with the card.
Delta SkyMiles® Reserve American Express Card
The Delta SkyMiles® Reserve American Express Card offers access to Delta Sky Clubs for primary cardmembers and holders of four annual one-time guest passes (in conjunction with a same-day Delta ticket). As of Feb. 1, 2025, Delta SkyMiles® Reserve American Express Card holders will get a total of 15 Sky Club Passes per year. Terms apply.
Additionally, the card offers access to The Centurion Lounges by American Express, but access comes with restrictions. First, you must be flying that day with Delta, and second, you must have paid for the flight with an American Express card. A cardmember may bring up to two guests to The Centurion Lounges for $50 per person ($30 per child ages 2-17). Terms apply.
United Club℠ Infinite Card
The United Club℠ Infinite Card is a premium co-branded United card that comes with United Club membership for the primary cardholder and eligible guests (two adult guests, or one adult and dependent children under the age of 21).
You must be flying United or a Star Alliance partner to access United Clubs.
United Club℠ Infinite Card
NerdWallet Rating
Annual fee
$525
General travel cards
The Platinum Card® from American Express
As a cardmember, you can access the following airport lounges:
Airspace Lounge.
Delta Sky Club (when flying Delta).
Escape Lounge.
Lufthansa Business Lounge (regardless of ticket class when flying with Lufthansa, Swiss International Air Lines or Austrian Airlines).
Lufthansa Senator Lounge (when flying business class with Lufthansa, Swiss International Air Lines or Austrian Airlines).
Plaza Premium Lounge.
Priority Pass Select (enrollment required).
The Centurion Lounge.
As of Feb. 1, 2025, Sky Club access for The Platinum Card® from American Express members will be reduced to 10 visits per year, unless your yearly purchases on the card total $75,000 or more. And if you do spend that much on The Platinum Card® from American Express, you’ll receive complimentary access for up to two guests to Centurion Lounges. Otherwise, the Centurion Lounges charge a guest fee of $50 per adult and $30 per child ages 2-17. Terms apply.
Chase Sapphire Reserve®
When it comes to free airport lounge access, travelers who hold the Chase Sapphire Reserve® card have fewer options than those who hold other cards, but there are still a couple of options. With this credit card, you can enter the following lounges at no extra cost:
Chase Sapphire Lounge by The Club.
Priority Pass Select.
Although only four Chase Sapphire Airport Lounges are currently open, the network is expanding. To gain access to these lounges, you must activate your Priority Pass Select membership, which includes access to more than 1,500 airport lounges around the world. Up to two guests are allowed for free.
Capital One Venture X Rewards Credit Card
Capital One Lounge.
Plaza Premium Lounge.
Priority Pass Select lounges.
Capital One Lounge locations are at just a few U.S. airports at the moment. Primary cardholders have unlimited access and can bring up to two guests. Entry for additional guests costs $45 each.
How the cards compare
The Platinum Card® from American Express
Chase Sapphire Reserve®
on Chase’s website
Capital One Venture X Rewards Credit Card
Annual fee
Welcome offer
Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Terms Apply.
Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,125 toward travel when you redeem through Chase Travel℠.
Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.
Still not sure?
Which banks offer airport lounge access?
Several banks offer card options with airport lounge access. If you’re looking for a card that includes lounge access as one of the benefits, consider the following credit card issuers.
American Express
As mentioned, The Platinum Card® from American Express offers lots of lounge options for travelers seeking some peace and quiet. However, if you don’t want to pay a high annual fee, we recommend the American Express® Green Card. It comes with an up-to-$100 statement credit for LoungeBuddy purchases. Terms apply.
LoungeBuddy, a lounge booking platform, sells limited-time access to select lounges in airports around the world. Depending on the airport, you might be able to get a couple of one-times passes with your annual credit.
Capital One
Capital One offers lounge access with its premium Capital One Venture X Rewards Credit Card. Cardholders receive complimentary Priority Pass Select membership, Plaza Premium Lounge access, and unlimited access to Capital One’s own Capital One Lounges.
Chase
For general travelers, the Chase Sapphire Reserve® card is going to offer the most convenient lounge access with its Priority Pass Select membership and access to the Chase Sapphire Lounges.
United flyers will find what they need with co-branded United cards. As we’ve discussed, the United Club℠ Infinite Card offers unlimited United Club access to primary cardholders, but if you’re a casual traveler, the United℠ Explorer Card will do the job. It comes with two one-time United Club passes every card membership year, so you can use it twice or enter once with a guest.
United℠ Explorer Card
NerdWallet Rating
Annual fee
$0 intro for the first year, then $95
Citibank
Though the Citi Prestige® Card is no longer open for new applications, those who currently hold it can take advantage of Priority Pass Select perks.
American Airlines flyers will enjoy unlimited Admirals Club access with the Citi® / AAdvantage® Executive World Elite Mastercard®.
U.S. Bank
How to get airport lounge access recapped
Leave the crowded gates behind you and head to an airport lounge to wait out the layover. There are many ways to gain entry, even for passengers sitting in economy cabins — and you might be able to treat your travel companions to some peace and quiet as well.
Credit card memberships, elite status and lounge passes can transport you from a chaotic airport terminal to a serene lounge, making your next connection less stressful.
To view rates and fees of The Platinum Card® from American Express, see this page.
To view rates and fees of the Delta SkyMiles® Reserve American Express Card, see this page.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
If you trust us with anything, let it be the fact that a simple bouquet (fresh or faux) has the ability to brighten any room. This acrylic vase will perfectly accentuate your florals and is the coolest addition to any desk or shelf.
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2
this squiggly tray
BIGPIPI Ceramic Jewelry Tray Dish
If your desk is littered with earrings, hair ties, and any other miscellaneous items (relatable), then this tray = the answer to all your problems. It also comes in other bold colorways like red and metallic silver.
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3
this vase duo
puthiac White Ceramic Vase
Now 21% Off
A circular vase is an unfailing decor piece, and these two are super cool (and super affordable). Your fave stems or feathers will look v cute sitting in these.
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4
this sleek lamp
ONEWISH Touch Bedside Table Lamp
Some added light is always a good idea, and this touch-activated lamp is the perf way to incorporate some extra brightness into your space—no switches or buttons needed!
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5
this candlestick holder trio
Vixdonos Pink Candlestick Holders
Eclectic candlesticks are all the rage, and your dining room/dinner parties/overall vibe would be extra fab with these glass ones displaying your fav candles. Plus, they basically come in every colorway imaginable.
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6
this elegant tray
Hanobe Decorative Serving Tray
Now 23% Off
All your new decor is gonna need a place to sit, so how about this circular tray? IMO, it would be the ideal finishing touch for your vases, candles, and whatever else your heart desires.
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7
this asymmetrical mirror
TRAHOME Wall Mirror
Why settle for a plain ole mirror when you can see your beautiful reflection in this funky one?!
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8
this throw blanket
CozeCube Checkered Blanket
Calling all maximalists! Anything checkered is a furnishing go-to, and I love this throw blanket for all the cozy vibes.
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9
this mosaic vase
COVEGE Pink Vase
Okay, is this not the prettiest vase you’ve ever laid eyes on?! It literally embodies all the ~spring has sprung~ vibes, and the mosaic tiles are to die for.
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10
this cloud-like comforter
Lush Decor Reyna Ruffle Comforter Set
Your bed def deserves an upgrade, and this ruffled blanket set would add a lil feminine flare to any bedroom. Because who wouldn’t wanna fall asleep in a fluffy white cloud every night!?
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11
these rounded shelves
VASAGLE Corner Shelf Wall Mount
Unsure what to do with your empty corner? This meandering shelf unit would look amazing filled with all your fave candles, pictures, and such.
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this pink lamp
Simple Designs Shades of Pink Ceramic Lamp
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If you feel like your room is lacking something, it just might be this anything-but-basic lamp.
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this wooden table
Bamworld Rattan Side Table
Need some extra space for your food, drinks, and even a magazine or two!? This side table combines a sleek glass design with rattan for a modern twist on the wooden aesthetic.
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these adorable bowls
Batitie Colorful Ceramic Bowls
Because who wouldn’t want to eat snacks or salads out of these precious floral bowls?!
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these beaded coasters
Folkulture Boho Coasters
If you’re the type of person who constantly needs a bev in hand (same here) then these cute beaded coasters are a must-have for your surfaces.
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these colorful glasses
Bella Vino Colored Wine Glasses
Now 38% Off
Need a wine glass upgrade? The answer is always yes. These oversized ones would look so good housing your fave wines or spritzes.
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17
this bougie bar cart
PAUKIN Gold Bar Cart
This isn’t just your basic bar cart. It boasts racks for your glasses, a sleek marble design, and the round shelf even has a 360-rotating design for easy access to your bottles and such. Say no more.
Like your grandma’s needlepoints, but make them super funny and *slightly* offensive.
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19
these floating shelves
Kazai Wall Shelves
Give your walls a major leg up with these wood shelves. Plus, they can hold up to 22 pounds of stuff!
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20
these wool coasters
Woolygon Square Felt Ball Coasters
These funky coasters are exactly what your coffee table/bar cart/glass of wine needs. Plus, they come in a bunch of different colorways, so you’re sure to find one that matches your ~aesthetic~.
Jasmine Hyman is the assistant shopping editor at Cosmopolitan where she covers all the best things you can add to your cart. She loves writing about everything from fashion to politics, and you can definitely find her listening to Harry Styles’ entire discography on loop while doing so. She’s also probably in bed either reading or endlessly scrolling through TikTok (most likely the latter). Feel free to follow her on Insta to be inundated with pictures of her meals.
Fannie Mae says home prices could drop as inventory builds and if borrowing rates stay higher for longer. (iStock)
There’s no relief in sight for high borrowing costs as interest rate cuts are pushed further into the distance. Still, a surge in housing inventory could give buyers more options, Fannie Mae said in a report.
Mortgage rates have ticked above 7% in recent weeks and that, combined with high home prices, has rendered housing unaffordable for many. Fannie Mae is still forecasting for mortgage rates to decrease later this year to 6.6%, but borrowing costs will only drop meaningfully once the Fed dials back interest rates. That won’t come until the central bank is confident that inflation will reach a 2% target rate.
The inflation data registered this year has been higher than the Fed expected. The latest reading of the personal consumption expenditures (PCE) price index, excluding food and energy prices—a key metric the Federal Reserve tracks to measure inflation—increased by 3.7% after rising to 2% in the fourth quarter, raising concerns that inflation may be headed in the wrong direction. Fannie Mae has readjusted its expectations on inflation and now expects the Consumer Price Index to end 2024 at a 3.1% annual rate, compared to the previously projected 2.5%.
“While we still expect economic growth and inflation to moderate going forward – and, thus, for mortgage rates to drift downward – interest rates existing in a ‘higher for longer’ state seems to be an increasingly real possibility in the eyes of market participants, as well as some homebuyers and sellers,” Fannie Mae Vice President, Economic and Strategic Research Hamilton Fout said. “While we’ve recently seen evidence that some potential home sellers are becoming more acclimated to the higher mortgage rate environment and putting their homes on the market, the recent move upward in rates is yet another headwind to the recovery of home sales, and it intensifies long-standing affordability challenges for consumers.”
The silver lining for the housing market is that supply is expected to build as home sales lag, which “should help gradually thaw housing inventory and contribute to decelerating home price growth,” Fannie Mae said.
Homebuyers can find the best mortgage rate by shopping around and comparing your options. You can visit an online marketplace like Credible to compare rates, choose your loan term and get preapproved with multiple lenders at once.
SOCIAL SECURITY: COLA INCREASING BUT MEDICARE COSTS RISING TOO IN 2024
Home prices forecasted to keep rising
Fannie Mae has readjusted its home price projection and forecasts upwards, but there are signs that gains are slowing. Home prices are forecasted to increase 4.8% annually in 2024 and 1.5% in 2025.
Home prices are now 6.4% above their level this time last year, up from the 6% increase registered in January, according to the latest S&P CoreLogic Case-Shiller national home price index report. Across the nation, home prices increased 0.6% month-over-month after dipping the previous month. This annual and monthly growth in home prices comes as homebuyers struggle with affordability issues caused by high mortgage rates and a lack of housing supply.
“Home price growth pivoted in February, as the impact of the January 2023 Home Price Index bottom finally faded,” CoreLogic Chief Economist Selma Hepp said in a statement. “As a result, the U.S. should begin to see slowing annual home price gains moving forward.”
If you’re looking to become a homeowner, you could still find the best mortgage rates by shopping around. Visit Credible to compare your options without affecting your credit score.
MILLENNIALS ARE DESPERATE TO BUY A HOME, MOST WILLING TO PAY A MORTGAGE RATE ABOVE 7%: SURVEY
Here’s how much homebuyers need to earn
Homebuyers need to earn more today to afford a home. Based on the current interest rate of 7.22% over a 30-year mortgage, buyers today would need to earn an annual income of roughly $120,000, plus a 10% down payment, to afford a home, according to the Clever Real Estate report. However, the average American household earns about $45,000 less than that, and most first-time buyers can’t afford a 10% down payment.
Based on the median annual salary and a 10% down payment, most first-time buyers can afford a home priced at about $207,529 — 38% less than the current median-priced home. Increasing the down payment to 20% lowers the salary threshold to $98,202, but saving that amount could take years, the Clever report said.
Moreover, higher mortgage rates and home prices mean that 20% of Americans spend roughly 30% of their paychecks on monthly home loan payments, and 10% spend more than half of their pay, according to a recent NewHomesMates.com survey. Homeownership is considered affordable if households spend at most 28% of their monthly income on housing costs. The survey said those ready to take the plunge have had to sink a larger portion of their paychecks into mortgage payments and make significant cuts to everyday spending.
If you’re considering becoming a homeowner, it could help to shop around to find the best mortgage rate. Visit Credible to compare options from different lenders and choose the one with the best rate for you.
THIS IS THE #1 CITY FOR FIRST-TIME HOMEBUYERS, AND OTHER HOT US HOUSING MARKETS
Have a finance-related question, but don’t know who to ask? Email The Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.
I spoke to a friend the other day who is selling their home and moving up to a bigger one.
Crazy I know! What with home prices where they are the mortgage rates more than double their early 2022 levels.
Despite this, they needed more space (and wanted a new locale) and were ready to move on from their old home.
Sure, it might not be the best time to buy a home, but it’s not always about the financials.
And even so, they’ve got a plan to offset the big jump in interest expense.
They’ve Currently Got a 30-Year Fixed Mortgage Set at 2.75%
First some background on the deal. They purchased their existing home around 2012, which was basically the housing market bottom post-GFC.
This was one of the very best times to purchase a home in recent memory. Aside from seeing their home nearly triple in value, they also snagged a crazy low mortgage rate.
A 30-year fixed at 2.75%. Pretty hard to beat. The purchase price of the home was around $400,000, and is expected to sell for around $1 million today. Also pretty hard to beat!
Problem is, mortgage rates are now closer to 7% and home prices on replacement homes are comparatively high as well.
In short, if you sell today you take on a much higher mortgage rate and sales price. This means a significantly higher payment.
They can actually absorb the higher payment, but they know swapping a 2.75% mortgage for a 7.25% mortgage isn’t a great trade-off.
So here’s the plan to offset that much higher interest expense.
Using Sales Proceeds to Prepay the New Mortgage
Now this might not be for everyone, but many home sellers today are flush with home equity.
They purchased their homes either decades ago and have no mortgage, or they purchased in the early 2010s and have seen property values skyrocket.
If we consider my friend’s $400,000 home purchase in 2012 with a 20% down payment and 2.75% mortgage rate, the loan balance would be around $222,000 today.
Assuming a sales price of $1 million, they might walk with $650,000 or more. They have elected to use some of those proceeds to put a dent in the new mortgage.
Not all of it mind you, to save for an emergency fund. But a good chunk of it.
Once their old home sells, they’ll apply a large lump sum payment to the new loan. Let’s pretend the new home was $1.2 million and they put 20% down again.
The loan amount is $960,000 and the monthly payment at 7.25% is about $6,550. Obviously, a huge jump from their old payment of about $1,300.
But they’re able to make the higher monthly payment, perhaps due to higher wages. Or maybe because they could always afford more.
Regardless, they don’t need a lower payment to make it work. And their plan is to knock down that loan balance in short order.
They Can Pay Off the New Loan in Less Than 15 Years
A Lump Sum Payment Comparison
$960k loan amount
No extra payment
$300k lump sum payment
Interest Rate
7.25%
7.25%
Monthly Payment
$6,548.89
$6,548.89
Loan Term
30 years
13 years
Interest Savings
n/a
$1,018,498
Now let’s imagine that once their old home sells, they apply $300,000 in sales proceeds to the new mortgage.
That knocks down the balance to around $657,000 just a few months into their new loan term.
Importantly, this extra mortgage payment does not lower their future mortgage payments, since that’s not how mortgages work.
They’d still have to continue making that payment of about $6,550 unless they asked the lender for a loan recast.
However, and this is a biggie, they’d save about $1 million in interest if they kept the loan to maturity.
And speaking of maturity, their loan would be paid off in about 13 years instead of 30 years.
This would effectively turn their 7.25% mortgage rate into something comparable to their original interest rate. All thanks to sending those sales proceeds toward the new mortgage.
A Mortgage Refinance Still Remains an Option
In the meantime, they can also keep an eye on mortgage rates and if they fall enough, a rate and term refinance could be an option as well.
So they’re not necessarily stuck with the new 7.25% rate. And if rates do come down, they’ll have a much smaller outstanding loan balance.
This means their loan-to-value ratio (LTV) will be much lower, which equates to fewer pricing adjustments.
For example, their LTV might be closer to 50% instead of 80% when it comes time to refinance. Generally speaking, this means a lower mortgage rate too.
Aside from a refinance, a loan recast is also typically an option, assuming they want a lower payment.
This won’t save them as much money, nor will the mortgage be paid off early, but it brings monthly payments down by re-amortizing the loan based on the smaller balance.
But if you’re more interested in paying less interest, perhaps because you were used to holding a 2-3% mortgage, this is one way to do it. Assuming you can afford the higher monthly payment.
And it’s one way an existing homeowner with mortgage rate lock-in can free themselves without feeling bad about losing their old, cheap home loan.
Do you want to learn how to get free PayPal money? Yes, there are actually many ways to get cash straight in your own PayPal account. Receiving PayPal cash for the extra income you make is great because PayPal cash can be used for almost all online shopping. If you want to increase your budget…
Do you want to learn how to get free PayPal money?
Yes, there are actually many ways to get cash straight in your own PayPal account.
Receiving PayPal cash for the extra income you make is great because PayPal cash can be used for almost all online shopping.
If you want to increase your budget without working extra hours, earning free PayPal money could be the solution. Many legitimate platforms offer tasks like surveys, watching videos, or trying new apps in exchange for cash directly deposited into your PayPal account.
I have personally used many of the apps below on a regular basis and have earned a lot of free PayPal money over the years.
Recommended reading: How To Get $20 PayPal Now
How To Get Free PayPal Money
Here are some places where you can start earning free PayPal money:
Below is more detailed information about each method for getting free PayPal cash in your PayPal account.
1. Swagbucks
Swagbucks is a well-known rewards website that gives you PayPal cash as a reward. It has been downloaded over 5 million times and has paid out over $500 million in rewards.
On Swagbucks, you can earn points called “SB” by answering surveys, getting cash back when you shop through their platform, and watching short videos.
With the points you earn on Swagbucks, you can put money directly into your PayPal account. You can redeem your points starting at $5 (this is 500 points) all the way up to $250 (25,000 points).
I began using Swagbucks about 10 years ago, and since then, I’ve earned over 110 free gift cards for myself, including a lot of PayPal cash. I don’t spend a lot of time on it – just every now and then.
Sign up for Swagbucks here and get up to a free $10 bonus.
2. User Interviews
User Interviews is a company that pays for online studies. These are more in depth than paid online surveys, and you can earn around $50 to $100 per hour or more for sharing your opinions and feedback.
They launch over 2,000 studies monthly, and they have paid over 85,000 people in the last year.
These are typically completed over the phone or in a video call where an interviewer is asking you questions.
The average study pays over $60. When you participate in User Interviews, you can receive payments in various forms such as cash, a check, PayPal, Amazon gift cards, Visa gift cards, and more.
You can click here to sign up for User Interviews.
Recommended reading: User Interviews Review – Make $50 To $100 An Hour Sharing Your Opinion
3. KashKick
KashKick is a rewards platform where you can get rewards for doing things like answering questions and playing games online. You can then turn these rewards into free PayPal money.
They have games like Monopoly GO, Yahtzee, Bingo Blitz, Scrabble Go, and others where you can earn $100 or more per game.
You need just $10 to cash out.
Sign up for KashKick here.
4. Ibotta
Ibotta is an app that gives you money back when you buy groceries. Just upload your receipts after you shop to earn cash that you can use as free PayPal cash.
Here’s how Ibotta works:
Browse offers – Check the Ibotta app to see what cash back offers are available before you go shopping (like for granola bars or toothpaste).
Shop in store – Go to the store and make your purchases.
Upload your receipt – Take a picture of your grocery receipt using the Ibotta app on your phone to earn cash back.
Some examples of the cash back you might be able to earn include: $0.50 cash back for buying body wash, $3.00 cash back for buying laundry detergent, and $1.00 cash back for buying cereal.
You need $20.00 to cash out to PayPal in the Ibotta app.
You can join Ibotta here.
5. Upside
Upside is an app that gives you cash back when you buy gas at certain gas stations. You can earn about $150 per year in cash back. Not all gas stations nearby are part of the app, but many are, so you’ll likely find some that qualify near you.
When you use the app for the first time, you can get a higher cash back amount to help you get familiar with it. In my first experience with the app, I received $0.74 back per gallon. I bought 12.62 gallons of gas and saved $9.33 just by using the app for the first time. It’s super easy and was a no-brainer to use.
Getting cash back on your gas is nice, especially with how expensive gas is these days!
To complete a PayPal cash-out on Upside, you need just $1.00 in your account.
You can sign up for Upside here.
6. Sell your old phones on Decluttr
Decluttr is a website where you can sell your old phones, CDs, DVDs, books, video game consoles, and more. It’s one of the most popular places to buy and sell electronics and tech items because they pay well and quickly.
Here’s how Decluttr works:
Open the Decluttr app and get a free valuation for the items you want to sell. It takes just a few moments to see what your item is worth.
Tell them the make, model, and condition of what you are selling. If you’re selling DVDs, CDs, or games, then you just enter your barcode or take a picture of the barcode with the Decluttr cell phone app.
If you’re satisfied with the offer for your item from Decluttr, just find a box that will keep it safe during shipping. Pack the item in the box, and Decluttr will provide a free shipping label. Simply print out the label and tape it to your box to send it off.
Finally, once Decluttr receives and checks your item, you’ll get paid the next day through direct deposit to your bank account or PayPal.
You can check out Decluttr here.
7. American Consumer Opinion
American Consumer Opinion is a site where you can take online surveys and earn points.
Their surveys pay around $1 to $5 each and once you earn enough points, you can redeem them for free PayPal money.
You need at least 1,000 points before you can withdraw and get free PayPal cash.
Click here to join American Consumer Opinion.
8. Survey Junkie
Survey Junkie is a paid online survey site where you can earn free PayPal cash for answering paid online surveys.
You can earn around $40 in free PayPal cash each month by completing around three short surveys each day.
You can redeem your points for free PayPal money starting at just $5 or 500 points.
Please click here to sign up for Survey Junkie.
9. Branded Surveys
Branded Surveys rewards you with points for answering survey questions. Surveys typically take 5 to 15 minutes and pay between $0.50 and $5.00 each. You can redeem these points for free PayPal cash.
You might have noticed there are several survey sites listed here. Companies pay you to answer questions because they want to improve their products and advertising. By understanding more about you, they can make better decisions. The best part is that these surveys are simple to answer, and you can join as many survey sites as you like.
You can click here to join Branded Surveys for free.
10. PrizeRebel
PrizeRebel is a website where you earn points by taking surveys, watching videos, and referring new members. You can redeem these points for free PayPal cash.
Just a few days ago I logged in to PrizeRebel, and I realized that I had enough points for around $150 in free PayPal cash. I redeemed them all at once, and now I have some nice extra spending money!
On PrizeRebel, you can get free $5 PayPal cash for 500 points. You can also choose any custom amount to redeem as well in PayPal cash.
Click here to sign up for PrizeRebel.
11. PayPal Honey
PayPal Honey is a free browser extension that automatically finds and applies coupon codes for you when you shop online. By using it, you earn points that you can redeem for extra money.
You can redeem your points for cash, gift cards, or free PayPal shopping credits.
Sign up for PayPal Honey by clicking here.
12. Rakuten
Rakuten lets you earn cash back on your everyday purchases from over 3,500 stores like Target, Walmart, Lululemon, Macy’s, Lowe’s, and Best Buy. When you make a purchase, you get a percentage of your spending back in cash.
When you shop through Rakuten, you get cash back as a percentage of what you spend. For example, if a store offers 5% cash back and you spend $200 there, you’d earn $10.00 in rewards in your Rakuten account.
You can receive your earnings via a check or PayPal once every quarter.
I have received over $1,000 in PayPal cash from Rakuten over the years. It’s a no-brainer if you want to easily save money when shopping online.
You can sign up for a free account on Rakuten here.
13. Find free PayPal money giveaways
If you’re looking to earn free PayPal money, entering sweepstakes and giveaways can be a fun way to try your luck. Companies host giveaways to attract new followers and keep existing followers and customers excited about their brand.
You can find free PayPal money giveaways by searching and/or following related hashtags on social media, such as #freepaypalmoney, #giveaway, #giveawayalert, and #freebie.
You can also follow online sweepstakes websites that list current giveaways.
Entering giveaways doesn’t guarantee free PayPal cash since they’re contests, but it’s quick and easy. I used to spend about an hour a week entering giveaways and have won gift cards and cash prizes.
14. Honeygain
The Honeygain app pays you up to $30 a month to share your internet connection with companies that use it as a tower.
You’re paid based on the amount of traffic that goes through your connection, earning $1 for every 10 GB of traffic.
Please click here to sign up for the Honeygain app.
15. Prime Opinion
If you want to learn how to get free money on PayPal, then Prime Opinion makes that possible with easy minimum threshold payout amounts to reach. You can get free PayPal cash starting at just 500 points, which is $5.
Prime Opinion is a survey website where you can earn money by sharing your opinions from home. They have lots of surveys available, and when I logged in recently, I had almost 50 surveys that I could take right away.
Please click here to join Prime Opinion and get up to a $5 free bonus.
16. Five Surveys
Five Surveys is a market research company that pays you to complete surveys. You just need to complete five surveys and then you can earn $5.
I signed up for Five Surveys myself to test it out for you. One thing I really like about Five Surveys is the number of available surveys. On the first day, there were 42 surveys I could start with, and more are being added all the time.
To withdraw from your Five Surveys account, just choose your preferred method. Options include PayPal cash, bank transfer, Venmo, and gift cards.
Please click here to sign up for Five Surveys.
17. Dosh
Dosh is a quick and simple app that automatically gives you cash back when you shop at certain stores like Costco, Sam’s Club, AT&T, American Eagle, and over 10,000 other companies.
Just link your debit or credit card (or even your Venmo or bank account) to the app, and everything else is handled for you. When you shop and pay with your linked card, you’ll automatically receive cash back into your Dosh account, which you can then transfer to your bank or PayPal account.
Once you accumulate $15 in your Dosh account (this is the minimum payout threshold), you can transfer it to your bank, PayPal, or Venmo. Alternatively, you can choose to donate your cash back to charity.
Recommended reading: 14 Best Apps To Scan Receipts for Money
Frequently Asked Questions
Below are answers to common questions about how to get free PayPal money.
How do I get money from PayPal for free?
You can earn free money on PayPal by completing online surveys, watching videos, selling your old stuff, and getting cash back when shopping online.
How do gamers receive PayPal funds by playing online games?
Apps like KashKick will pay you in points to play their online games. The points that you earn can then be redeemed for free PayPal funds straight in your personal PayPal account. YouTubers can also get paid to play online games and stream what they are doing.
What methods are available to secure a quick $10 on PayPal?
You can quickly earn $10 on PayPal by completing tasks such as taking surveys, reading emails, or shopping online through websites like Rakuten. These sites allow you to cash out once you reach a minimum amount. You can also become a freelancer on Fiverr and get paid in PayPal cash for hard or simple tasks. This wouldn’t be free money because you would have to work for it, but it is another option.
How do I check my PayPal balance?
To check your PayPal balance, you will have to log in to your PayPal account. Right after you log in, your PayPal balance will be listed for you to easily see.
Can you get PayPal money right away?
Some platforms may pay instant payouts to your PayPal account, while others may have a processing time or a minimum threshold before you can cash out. Always check the payout terms of the website or app you’re using to understand how and when you can access your earnings. Sometimes, it may take a couple of days before it lands in your personal PayPal account.
If you really need money right away, then another option may be to ask someone that you know for help or to ask for donations.
Best Ways To Get Free PayPal Money
I hope you enjoyed this article on how to get free money on PayPal.
Getting free PayPal money is great because it is just like extra cash. You can pay for your online purchases with it at almost all stores, and PayPal also has the PayPal Debit Card (so, this is kind of like getting a free PayPal gift card), so that you can buy things in-store too. Or you can also transfer it to your bank account and withdraw it just like cash.
Now, there are PayPal cash scams out there, so I do recommend that you be careful. If you are ever suspicious, do as much research as you can.
I have personally used many of the sites above and have earned well over $1,000 in free PayPal money over the years for doing things just in my spare time.
Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate mortgages to write unbiased product reviews.
We may get some more clarity on how mortgage rates will trend this year when the Bureau of Labor Statistics releases April’s Consumer Price Index data on Wednesday.
Over the last week, 30-year mortgage rates have hovered in the upper 6% range, according to Zillow data. But if this latest inflation report shows that prices rose faster than expected last month, rates could jump back up above 7%. Rates have been very sensitive to economic data this year, so however the report turns out, be prepared for rates to move up or down.
Most forecasters expect mortgage rates to go down this year, but they’re unlikely to fall until inflation slows further and the Federal Reserve starts lowering the federal funds rate.
According to the Federal Reserve Bank of Cleveland’s inflation nowcast, core CPI may show some signs of slowing in April’s report, which would be good news for mortgage rates.
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Mortgage Calculator
Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.
Mortgage Calculator
$1,161 Your estimated monthly payment
Total paid$418,177
Principal paid$275,520
Interest paid$42,657
Paying a 25% higher down payment would save you $8,916.08 on interest charges
Lowering the interest rate by 1% would save you $51,562.03
Paying an additional $500 each month would reduce the loan length by 146 months
By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.
30-Year Fixed Mortgage Rates
The average 30-year fixed mortgage rate was 7.09% last week, according to Freddie Mac. This is 13 basis points lower than it was the week before.
The 30-year fixed-rate mortgage is the most common type of home loan. With this type of mortgage, you’ll pay back what you borrowed over 30 years, and your interest rate won’t change for the life of the loan.
The lengthy 30-year term allows you to spread out your payments over a long period of time, meaning you can keep your monthly payments lower and more manageable. The trade-off is that you’ll have a higher rate than you would with shorter terms or adjustable rates.
15-Year Fixed Mortgage Rates
Average 15-year mortgage rates were 6.38% last week, according to Freddie Mac data, which is a nine-basis-point decrease from the previous week.
If you want the predictability that comes with a fixed rate but are looking to spend less on interest over the life of your loan, a 15-year fixed-rate mortgage might be a good fit for you. Because these terms are shorter and have lower rates than 30-year fixed-rate mortgages, you could potentially save tens of thousands of dollars in interest. However, you’ll have a higher monthly payment than you would with a longer term.
Are Mortgage Rates Going Down?
Mortgage rates increased throughout most of 2023. But mortgage rates are expected to trend down in the coming months and years.
In the last 12 months, the Consumer Price Index rose by 3.5%. As inflation comes down and the Federal Reserve is able to start cutting the federal funds rate, mortgage rates should fall further as well.
For homeowners looking to leverage their home’s value to cover a big purchase — such as a home renovation — a home equity line of credit (HELOC) may be a good option while we wait for mortgage rates to ease. Check out some of our best HELOC lenders to start your search for the right loan for you.
A HELOC is a line of credit that lets you borrow against the equity in your home. It works similarly to a credit card in that you borrow what you need rather than getting the full amount you’re borrowing in a lump sum. It also lets you tap into the money you have in your home without replacing your entire mortgage, like you’d do with a cash-out refinance.
Current HELOC rates are relatively low compared to other loan options, including credit cards and personal loans.
How Do Fed Rate Hikes Affect Mortgages?
The Fed aggressively raised the federal funds rate in 2022 and 2023 to slow economic growth and get inflation under control. As a result, mortgage rates spiked.
Mortgage rates aren’t directly impacted by changes to the federal funds rate, but they often trend up or down ahead of Fed policy moves. This is because mortgage rates change based on investor demand for mortgage-backed securities, and this demand is often impacted by how investors expect Fed hikes to affect the broader economy.
Now that the Fed has paused hiking rates, mortgage rates have come down a bit. Once the Fed starts cutting rates, which is likely to happen this year, mortgage rates should fall even further.
Online and mobile banking are now woven into many people’s daily lives. With just a few clicks or taps, you can check your balances, pay bills, and make other financial transactions from virtually anywhere, at any time.
Banks are not only convenient, they also implement numerous security measures to help safeguard your accounts. With hackers finding increasingly sophisticated ways to try to access your information, however, it’s also important to be aware of steps you can take on your own to keep your financial and personal details out of the hands of cyber thieves and hackers. Here’s what you need to know.
Tips on Securing Your Bank Account from Hackers
These days cyber thieves are getting increasingly savvy, even setting up fake bank websites and banking apps designed to steal your personal information — and, in turn, the contents of your checking or savings account.
There are a few simple things you can do, however, to help secure your accounts. What follows are six easy strategies that can help you stay ahead of scammers and hackers and protect your hard-earned cash. 💡 Quick Tip: Are you paying pointless bank fees? Open a checking account with no account fees and avoid monthly charges (and likely earn a higher rate, too).
Choose Trustworthy Financial Apps
Whether it’s your bank’s mobile app or any other type of financial app (like a budgeting app), be sure to only download verified apps from a trusted platform, like the App Store for iPhone or iOS users or the Google Play Store for Android users. Fraudulent activity can often occur through fake apps or those downloaded from unofficial sources.
Before downloading a third-party money management app, it’s also a good idea to look up online reviews of the providers from reliable sources, research the app’s security policies, and look for any past data breaches.
Recommended: 50/30/20 Budget Rule: What It Is and Tips On Using It
Choose Strong and Unique Passwords
It’s wise to choose a unique password for every bank account, and avoid repeating any ones you use for other online accounts, even non-financial ones. That way, if a fraudster is able to uncover your Facebook password, they won’t be able to access your savings account.
To create a secure password, try to combine uppercase and lowercase letters, numbers, and special characters. You generally want to avoid using easily guessable information such as birthdates, kids’ names, or sequential numbers. To keep the login information for all of your accounts organized, you might want to use a physical or online password manager.
Use Multi-Factor ID
Whenever possible, it’s a good idea to enable two- or multi-factor authentication. This adds another layer of security by requiring one or more forms of verification in addition to a password, such as a pin sent to your mobile device via email or SMS. If hackers are able to access your bank account login credentials, it would be difficult for them to log in without your second verification.
You may also want to take advantage of biometric authentication methods, such as fingerprint or facial recognition, if offered by your bank. Biometrics protect your account by using unique physical characteristics to verify your identity, making it harder for hackers to gain unauthorized access.
Recommended: Avoiding Mobile Deposit Scams, Fakes, and Hacks
Set Up Account Alerts
You can typically set up banking alerts via email, text, or your bank’s app to monitor unusual activity, such as large withdrawals, a profile/password update, new linked external account, or an unusual login attempt. This allows you to identify suspicious activity quickly and report any unusual or unauthorized transactions to your bank right away. You can then work with the bank to swiftly resolve the issue. 💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.
Watch Out for Phishing Attempts
Phishing scams are ever more prevalent and sophisticated. These scams trick you into providing your personal and banking information that can then be used for fraudulent activity.
For example, you could receive an email, supposedly from your bank, saying there’s been a problem with your account and sharing a link where you are asked to login and update your information. The website you are led to could look just like your bank’s website. If you input your details, hackers will have access to your login information. A few ways to avoid online bank scams:
• If you get a communication that says it’s from your bank and asks you to click a link, don’t. Log into your banking website or app, and check messages there to see what’s going on. Or call your bank to ask if the message is legitimate.
• Hover over the email sender’s address. You may be surprised to see the message is coming from a different identity than the one it’s pretending to be. If that’s the case, don’t click on anything; mark the email as spam.
• Never download attachments from unknown sources, as they may contain malware designed to steal your login credentials.
Recommended: Are Online Savings Accounts Safe?
Be Wary When Using Public Wifi
The public wifi at your favorite coffee shop or local library can help you stay connected when you’re out and about, but you can’t count on it to be entirely secure. While it’s generally fine to use public wifi for browsing the web, it’s best to avoid using it for any activities that require login information, such as signing in to your bank account. The open connection could potentially give cyber thieves a chance to grab your username and password as they move between you and your bank’s website.
To make public wifi more secure, consider putting a virtual private network (VPN) app on your device. A VPN encrypts your data as it passes to and from your device and acts as a protective pathway so that your data is not visible as it passes through a network.
Recommended: What Do You Need to Open a Bank Account?
The Takeaway
Online banking is generally safe and convenient, but it’s also important to take precautions to minimize the risk of getting hacked or scammed. Luckily, there are steps you can take to reduce the risk of your bank account being compromised. These include using strong passwords and multi-factor authentication, only downloading apps from reputable platforms, never clicking on links in communications that are (supposedly) from your bank, and never logging into your bank account using public wifi.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
Can hackers steal money from a bank account?
Hackers may be able to steal money from a bank account if they gain access to your account credentials. They might be able to do this by using deceptive emails and websites to trick you into revealing your bank details or exploiting vulnerabilities in a bank’s security systems to access sensitive data.
Fortunately, banks implement numerous security measures to safeguard your accounts. You can also help keep your accounts safe by using strong passwords, enabling multi-factor identification, and being wise to phishing scams.
Who pays if your bank account is hacked?
If your bank account is hacked and unauthorized transactions occur, the bank will likely reimburse the stolen funds, provided you report the incident quickly.
As soon as you see something suspicious, you’ll want to call the number on the back of your bank card and go through the fraud department’s recovery process.
Am I protected if my bank account is hacked?
Yes, you are usually protected if your bank account is hacked, as long as you let the bank know about the fraudulent transaction in a timely manner.
Generally, if you report an unauthorized bank transaction within 48 hours, your liability will be limited to no more than $50. However, if you wait months to report an incident, you might have difficulty recovering any of your lost funds.
Can someone hack your bank account with a routing number and an account number?
Having access to your routing number and account number can potentially lead to some negative outcomes, such as fraudulent payments, the creation of checks for your account, and possibly online shopping with retailers that only require bank account information.
However, a routing number and account number is typically not sufficient on its own for hackers to gain direct access to your bank account. Most banks employ multiple layers of security measures, including authentication protocols and monitoring systems, to prevent unauthorized access to customer accounts.
Photo credit: iStock/insjoy
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Our account fee policy is subject to change at any time. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
The AAA credit card portfolio requires a little history lesson.
After Bread Financial formally partnered with AAA in 2022, the companies launched two co-branded credit cards: the AAA Travel Advantage Visa Signature Credit Card and the AAA Daily Advantage Visa Signature Credit Card. Both are issued by Bread Financial, formerly Comenity Bank, and offer solid rewards rates, although earnings are capped.
A third co-branded card, the AAA Cashback credit card, is issued by U.S. Bank.
The Travel Advantage and Daily Advantage credit cards have similar features, but they differ from their Cashback cousin when it comes to eligibility requirements, rewards and sign-up bonus.
Here’s what you need to know about the three AAA credit cards to help you decide the best fit for your lifestyle.
1. There are 3 AAA credit cards
Before applying for one of the AAA credit cards, make sure you’re filling out an application for the card you really want. The three AAA credit cards have different rewards structures:
AAA Daily Advantage credit card.
AAA Travel Advantage credit card.
AAA Cashback credit card.
AAA Daily Advantage credit card
AAA Daily Advantage is billed as a card for everyday spending. And for many cardholders, the rewards categories do represent common spending categories. The Daily Advantage card earns:
5% cash back at grocery stores.
3% cash back on gas and EV charging, wholesale clubs, streaming services, pharmacy and AAA purchases.
1% cash back on all other purchases.
There’s a $500 annual cash-back cap on rewards earned at grocery stores, wholesale clubs and gas stations combined. After hitting the cap, purchases in those categories earn 1% back for the rest of the year. A $500 rewards limit may seem high, but some families will easily exceed it. If you spend $10,000 annually at grocery stores alone, you’d hit the $500 cash-back cap.
AAA Travel Advantage credit card
As the name suggests, AAA Travel Advantage is a travel-centric card, and its rewards categories bear that out. The Travel Advantage card earns:
5% cash back on gas and EV charging.
3% cash back on travel, restaurants, grocery stores and AAA purchases.
1% cash back on all other purchases.
Rewards earned on gas and EV charging are capped at $350 per calendar year. The rewards rate drops to 1% once you’ve hit the limit. Given the 5% rate, cardholders would need to spend $7,000 a year (or about $583.30 per month) on gas and EV charging to reach the $350 rewards cap.
AAA Cashback credit card
The rewards rates are less impressive on the AAA Cashback card compared to the other two cards; however, there’s no cap on rewards. This card earns:
3% cash back at grocery stores, gas stations and dining.
2% cash back on AAA memberships, travel and insurance.
1% on everything else.
🤓Nerdy Tip
Bread Financial doesn’t allow consumers to have both the Daily Advantage and Travel Advantage cards.
2. You may need AAA membership to get one of the cards
AAA membership is required to get the AAA Cashback credit card. Pricing depends on where you live, but in general, a membership can cost from $38-$164 a year for one person.
However, you don’t have to be a member of AAA to apply for the Daily Advantage or the Travel Advantage credit cards.
3. Reward redemption options vary slightly by card
If you have the AAA Cashback Visa, rewards may be redeemed for the following:
AAA gift cards.
Merchandise.
Statement credit ($25 minimum to redeem).
Direct deposit ($25 minimum to redeem).
Gift cards.
The redemption options for the Daily Advantage and Travel Advantage cards include everything listed above plus Apple products and AAA merchandise, services and travel. Cardholders must have at least $5 to redeem if they opt for cash back or a statement credit.
For all three AAA cards, rewards expire after five years.
4. Sign-up bonuses vary by card, too
Currently, the Travel Advantage and Daily Advantage credit cards have the same sign-up bonus: a $100 statement credit for new cardholders who spend $1,000 on their AAA Visa Signature card in the first 90 days of account opening.
As of this writing, the welcome offer for the AAA Cashback card is potentially more valuable, depending on your spending. Instead of the standard 2% rate, new AAA Cashback cardholders will earn 4% on AAA memberships, travel and insurance for the first six months, up to $6,000. Were you to hit the $6,000 spending cap, you’d get $240 cash back.
5. Fees are minimal
For the Daily Advantage and Travel Advantage cards, the combination of a $0 annual fee and a fixed 5% rewards category is especially notable. Other credit cards that feature a 5% rate often come with an annual fee or require you to actively track and opt in to bonus categories that rotate every quarter.
The newest addition to PNC Bank’s credit card portfolio may already be the best of the bunch.
Launched on May 7, 2024, the PNC Cash Unlimited Visa Signature Credit Card has no annual fee and earns an unlimited 2% cash back on all eligible purchases. Other highlights include cell phone insurance, a 0% intro APR, and no foreign transaction fees. That combination of perks in a $0-annual-fee card makes the PNC Cash Unlimited card one of the best credit cards that earn 2% on all purchases.
Who doesn’t want to be rewarded?
Create a NerdWallet account for personalized recommendations, and find the card that rewards you the most for your spending.
Note that you must be a member of PNC Bank to apply for any PNC Bank-issued card.
Rewards earned with the PNC Cash Unlimited card never expire and may be redeemed for:
Direct deposit into an eligible PNC Bank consumer checking or savings account or a PNC investment account.
Statement credit to the PNC Cash Unlimited card account.
Gift cards.
Travel booked through PNC’s Travel Catalog.
There’s no minimum redemption amount required to redeem for a direct deposit or statement credit, but cardholders must have at least 5,000 points to book travel. One point is worth 1 cent, the industry standard, when redeemed for direct deposit, statement credit and travel. Point values vary for gift card redemptions.
The cell phone insurance offered by the PNC Cash Unlimited is highly competitive with other cards in its class. As long as you use your PNC card to pay your cell phone bill, you can receive up to $800 worth of coverage per claim. (Two claims are allowed every 12 months.) For comparison, another 2% rewards credit card, the Wells Fargo Active Cash® Card, pays out up to $600 per claim.
If the PNC Cash Unlimited card has a weakness, it’s the lack of a sign-up bonus in which new cardholders can get a huge chunk of rewards by spending a certain amount within a specified time frame. However, new cardholders do get an introductory 0% APR for 12 months on purchases and on balance transfers made within 90 days of account opening. For those looking for a break on interest charges, that feature can be a true money saver.