At one point during the first and, possibly, only debate between the two presidential hopefuls, Vice President Kamala Harris said to former President Donald Trump, “You’re not running against Joe Biden. You’re running against me.”
That statement was clear to anyone watching.
The energy of Tuesday night’s debate, which was hosted by ABC News in Philadelphia, starkly contrasted the June debate in which Trump faced off against President Joe Biden. The one that led to Biden stepping down and Harris stepping up to be the democratic candidate.
Harris and Trump clashed over a number of policy proposals including the economy, abortion, climate change, energy, immigration and foreign policy.
Unlike during the CNN-hosted debate in June, ABC News hosts David Muir and Linsey Davis fact checked statements live — including refuting Trump’s false claim that in some states, parents can elect to kill their baby after birth; a false conspiracy theory that immigrants in Springfield, Ohio are eating people’s pets; and another false claim that Democrats favor abortion in the ninth month of pregnancy. Muir and Davis weren’t actively fact checking Kamala Harris much, but they did question why she has changed her positions on fracking and health care — Harris denied that her views have substantially changed.
Speaking of policy positions, the candidates’ plans for the economy were first up, but didn’t get much consistent airtime thereafter. Trump attacked the Biden-Harris administration on inflation before repeatedly bringing the focus to his views on immigration. Meanwhile, Harris doubled down on much of what she’s said on the campaign trail about being raised “a middle class kid”; her Opportunity Economy; and the multiple economic assessments that project Trump’s plans would ignite inflation.
Here are some other takeaways from the debate:
Harris said Trump would impose a sales tax (that she’s calling a “Trump sales tax”) on everyday goods. Trump said it was an incorrect statement. What Harris is likely referring to is Trump’s proposal to impose across-the-board tariffs, which would likely increase the cost of imported goods to America. Trump defended his proposals.
Harris didn’t respond when Trump pressed her on why the Biden Administration did not remove the tariffs he put in place during his presidency.
Trump has long tried to get rid of the Affordable Care Act, but said he doesn’t have a health care plan to replace it. However, he does have “concepts of a plan.”
Harris slammed Trump on his views on abortion and that Roe v. Wade was overturned while he was president. Trump said abortion was best left up to the states. Harris said, as president, she would sign a bill that Congress passes to restore abortion rights.
It was the debate the Harris campaign needed after recent polling: The New York Times/Siena College that was released on Sunday showed Trump leads Harris 48% to 47% nationally (Sept. 3-6). In most swing states (Arizona, Georgia, Nevada and North Carolina), the candidates are tied at 48% each. In Pennsylvania, Harris leads Trump 49% to 48%.
By midnight on the east coast, the Polymarket, a prediction market platform, projected a 96% chance that upcoming polls will show Harris won the debate.
A spousal IRA gives a non-working spouse a way to build wealth for retirement, even if they don’t have earned income of their own.
Spousal IRAs can be traditional or Roth accounts. What distinguishes a spousal IRA is simply that it’s opened by an income-earning spouse in the name of a non-working or lower-earning spouse.
If you’re married and thinking about your financial plan as a couple, it’s helpful to understand spousal IRA rules and how you can use these accounts to fund your goals.
What Is a Spousal IRA?
A spousal IRA is an IRA that’s funded by one spouse on behalf of another. This is a notable exception to the rule that IRAs must be funded with earned income. In this case, the working spouse can make contributions to an IRA for the non-working spouse, even if that person doesn’t have earned income.
The couple must be married, filing jointly, in order for the working spouse to be able to fund a spousal IRA. For example, say that you’re the primary breadwinner for your family, and perhaps your spouse is a stay-at-home parent or the primary caregiver for their aging parents, and doesn’t have earned income. As long as you have taxable compensation for the year, you could open a spousal IRA and make contributions to it on your spouse’s behalf.
Saving in a spousal IRA doesn’t affect your ability to save in an IRA of your own. You can fund an IRA for yourself and an IRA for your spouse, as long as the total contributions for that year don’t exceed IRA contribution limits (more on that below), or your total earnings for the year.
Recommended: Understanding Individual Retirement Accounts (IRAs): A Beginner’s Guide
How Do Spousal IRAs Work?
Spousal IRAs work much the same as investing in other IRAs, in that they make it possible to save for retirement in a tax-advantaged way. The rules for each type of IRA, traditional and Roth, also apply to spousal IRAs.
What’s different about a spousal IRA is who makes the contributions. If you were to open an IRA for yourself, you’d fund it from your taxable income. When you open an IRA for your spouse, contributions come from you, not them.
It’s also important to note that these are not joint retirement accounts. Your spouse owns the money in their IRA, even if you made contributions to it on their behalf.
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Spousal IRA Rules
The IRS sets the rules for IRAs, which also govern spousal IRAs. These rules determine who can contribute to a spousal IRA, how much you can contribute, how long you have to make those contributions, and when you can make withdrawals.
Eligibility
Married couples who file a joint tax return are eligible to open a spousal IRA for the non-working spouse. As long as one spouse has taxable compensation and, in the case of a Roth IRA, they meet income restrictions, they can open an IRA on behalf of the other spouse.
Taxable compensation includes money earned from working, such as wages, salaries, tips, or bonuses. Generally, any amount included in your income is taxable and must be reported on your tax return unless it’s excluded by law.
That said, a traditional IRA does not have income requirements; a Roth IRA does.
Maximum Annual Contributions
One of the most common IRA questions is how much you can contribute each year. Spousal IRAs have the same contribution limits as ordinary traditional or Roth IRAs. These limits include annual contribution limits, income caps for Roth IRAs, and catch-up contributions for savers 50 or older.
For tax-year 2024, you can contribute up to $7,000 to a traditional or Roth IRA; if you’re 50 or older you can add another $1,000 (the catch-up contribution) for a total maximum of $8,000.
Remember, you can fund a spousal contribution as well as your own IRA up to the limit each year, assuming you’re eligible. That means for the 2024 tax year, a 35-year-old couple could save up to $14,000 in an individual and a spousal IRA.
A 50-year-old couple can take advantage of the catch-up provision and save up to $16,000.
Contribution Limits for Traditional and Roth IRAs
There are a couple of rules regarding contribution limits; these apply to ordinary IRAs and spousal IRAs alike.
• First, the total contributions you can make to an individual IRA and/or spousal IRA cannot exceed the total taxable compensation you report on your joint tax return for the year.
• If neither spouse is covered by a workplace retirement account, contributions to a traditional spousal IRA would be deductible. If one spouse is covered by a workplace retirement account, please go to IRS.gov for details on how to calculate the amount of your contribution that would be deductible, if any.
There is an additional restriction when it comes to Roth IRAs. Whether you can make the full contribution to a spousal Roth IRA depends on your modified adjusted gross income (MAGI).
• Married couples filing jointly can contribute the maximum amount to a spousal Roth IRA for tax year 2024 if their MAGI is less than $230,000.
• They can contribute a partial amount if their income is between $230,000 and $240,000.
• If a couple’s income is $240,000 or higher, they are not eligible to contribute to a Roth or spousal Roth IRA.
Contribution Deadlines
The annual deadline for making an IRA contribution for yourself or a spouse is the same as the federal tax filing deadline. For example, the federal tax deadline for the 2024 tax year is April 15, 2025. You’d have until then to open and fund a spousal IRA for the 2024 tax year.
Filing a tax extension does not allow you to extend the time frame for making IRA contributions.
Withdrawal Rules
Spousal IRAs follow the same withdrawal rules as other IRAs. How withdrawals are taxed depends on the type of IRA and when withdrawals are made.
Here are a few key spousal IRA withdrawal rules to know:
• Qualified withdrawals from a traditional spousal IRA are subject to ordinary income tax.
• Early withdrawals made before age 59 ½ may be subject to a 10% early withdrawal penalty, unless an exception applies (see IRS rules).
• Spouses who have a traditional IRA must begin taking required minimum distributions (RMDs) at age 72, or 73 if they turned 72 after Dec. 31, 2022. Roth IRAs are not subject to RMDs, unless it’s an inherited Roth IRA.
• Roth IRA distributions are tax-free after age 59 ½, as long as the account has been open for five years, and original Roth contributions (i.e., your principal) can always be withdrawn tax free.
• A tax penalty may apply to the earnings portion of Roth IRA withdrawals from accounts that are less than five years old.
Whether it makes more sense to open a traditional or Roth IRA for a spouse can depend on where you are taxwise now, and where you expect to be in retirement.
Deducting contributions may help reduce your taxable income, which is a good reason to consider a traditional IRA. On the other hand, you might prefer a Roth IRA if you anticipate being in a higher tax bracket when you retire, as tax-free withdrawals would be desirable in that instance.
Recommended: Inherited IRA Distribution Rules Explained
Pros and Cons of Spousal IRAs
Spousal IRAs can help married couples to get ahead with saving for retirement and planning long-term goals, but there are limitations to keep in mind.
Pros of Spousal IRAs
• Non-working spouses can save for retirement even if they don’t have income.
• Because they’re filing jointly, couples would mutually benefit from the associated tax breaks of traditional or Roth spousal IRAs.
• Spousal IRAs can add to your total retirement savings if you’re also saving in a 401(k) or similar plan at work.
• The non-working spouse can decide when to withdraw money from their IRA, since they’re the account owner.
Cons of Spousal IRAs
• Couples must file a joint return to contribute to a spousal IRA, which could be a drawback if you typically file separately.
• Deductions to a spousal IRA may be limited, depending on your income and whether you’re covered by a retirement plan at work.
• Income restrictions can limit your ability to contribute to a spousal Roth IRA.
• Should you decide to divorce, that may raise questions about who should get to keep spousal IRA assets (although the spousal IRA itself is owned by the non-working spouse).
Spousal IRAs, Traditional IRAs, Roth IRAs
Because you can open a spousal IRA that’s either a traditional or a Roth style IRA, it helps to see the terms of each. Remember, spouses have some flexibility when it comes to IRAs, because the working spouse can have their own IRA and also open a spousal IRA for their non-working spouse. To recap:
• Each spouse can open a traditional IRA
• If eligible, each spouse can open a Roth IRA
• One spouse can open a Roth IRA while the other opens a traditional IRA.
Bear in mind that the terms detailed below apply to each spouse’s IRA.
Spousal IRA
Traditional IRA
Roth IRA
Who Can Contribute
Spouses may contribute to a traditional or Roth spousal IRA, if eligible.
Roth spousal IRA eligibility is determined by filing status and income (see column at right).
Anyone with taxable compensation.
Eligibility to contribute determined by tax status and income. Married couples filing jointly must earn less than $240,000 to contribute to a Roth.
2024 Annual Contribution Limits
$7,000; $8,000 for those 50 and up (note that each spouse can have an IRA and contribute up to the annual limit)
$7,000; $8,000 for those 50 and up
$7,000; $8,000 for those 50 and up.
Tax-Deductible Contributions
Yes, for traditional spousal IRAs*
Yes*
No
Withdrawals
Withdrawal rules for both types of spousal IRAs are the same as for ordinary IRAs (see columns at right).
Qualified distributions are taxed as ordinary income.
Taxes and a penalty apply to withdrawals made before age 59 ½ , unless an exception applies, per IRS.gov.
Original contributions can be withdrawn tax free at any time (but not earnings).
Distributions of earnings are tax free at 59 ½ as long as the account has been open for 5 years.
Required Minimum Distributions
Yes, for traditional spousal IRAs. RMDs begin at age 72**
Yes, RMDs begin at age 72**
RMD rules don’t apply to Roth IRAs.
* Deduction may be limited, depending on your income and whether you or your spouse are covered by a workplace retirement plan. ** You must take withdrawals from a traditional IRA once you reach 72 (or 73, if you turn 72 in 2023 or later).
Dive deeper: Roth IRA vs. Traditional IRA: Which IRA is the right choice for you?
Creating a Spousal IRA
Opening a spousal IRA is similar to opening any other type of IRA. Here’s what the process involves:
• Find a brokerage. You’ll first need to find a brokerage that offers IRAs; most will offer spousal IRAs. When comparing brokerages, pay attention to the investment options offered and the fees you’ll pay.
• Open the account. To open a spousal IRA, you’ll need to set it up in the non-working spouse’s name. Some of the information you’ll need to provide includes the non-working spouse’s name, date of birth, and Social Security number. Be sure to check eligibility rules.
• Fund the IRA. If you normally max out your IRA early in the year, you could do the same with a spousal IRA. Or you might prefer to space out contributions with monthly, automated deposits. Be sure to contribute within eligible limits.
• Choose your investments. Once the spousal IRA is open, you’ll need to decide how to invest the money you’re contributing. You may do this with your spouse or allow them complete freedom to decide how they wish to invest.
As long as you file a joint tax return, you can open a spousal IRA and fund it. It doesn’t necessarily matter whether the money comes from your bank account, your spouse’s, or a joint account you share. If you’re setting up a spousal IRA, you can continue contributing to your own account and to your workplace retirement plan if you have one.
Start Your IRA With SoFi
Spousal IRAs can make it easier for couples to map out their financial futures even if one spouse doesn’t work. The sooner you get started with retirement saving, the more time your money has to grow through compounding returns.
Ready to invest for your retirement? It’s easy to get started when you open a traditional or Roth IRA with SoFi. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
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FAQ
What are the rules for a spousal IRA?
Spousal IRA rules allow a spouse with taxable compensation to make contributions to an IRA on behalf of a non-working spouse. The non-working spouse owns the spousal IRA and can decide how and when to withdraw the money. Spousal IRA withdrawals are subject to the same withdrawal rules as traditional or Roth IRAs, depending on which type of account has been established.
Is a spousal IRA a good idea?
A spousal IRA could be a good idea for married couples who want to ensure that they’re investing as much money as possible for retirement on a tax-advantaged basis. In theory, a working spouse can fund their own IRA as well as a spousal IRA, and contribute up to the maximum amount for each.
Can I contribute to my spouse’s traditional IRA if they don’t work?
Yes, that’s the idea behind the spousal IRA option. When a wife or husband doesn’t have taxable income, the other spouse can make contributions to a spousal traditional IRA or Roth IRA for them. The contributing spouse must have taxable compensation, and the amount they contribute each year can’t exceed their annual income amount or IRA contribution limits.
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Individual customer accounts may be subject to the terms applicable to one or more of these platforms.
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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.
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A debit card offers an easy way to make purchases, pay bills, and withdraw cash at automatic teller machines (ATMs). These cards are issued by banks and credit unions and offer a direct link to your checking account. While they look like credit cards, and offer some of the same benefits, they don’t involve accumulating any debt. If you don’t yet have a debit card, here’s information on what they do and how to get one.
What Do Debit Cards Do?
A debit card, also known as a bank card, is a physical card that replaces the need to carry cash. You can use a debit card to make purchases both in person or online using the funds in your bank account. Debit cards are typically associated with checking accounts, though some types of savings accounts (such as money market accounts) offer debit cards. You can also use a debit card to withdraw or deposit cash at ATMs.
When you make a transaction using a debit card, the money is immediately deducted (or debited) from your bank account balance. This makes a debit card different from a credit card, which involves borrowing funds from your card issuer to make purchases. With a debit card, you generally can’t spend more than you have in your bank account, and won’t get a bill at the end of the month.
Every debit card has a unique (typically) 16-digit number and expiration date, which are usually on the front of the card. Your card should also have a three-digit debit card security code, or CSC (also sometimes called a CVV or CVC), which you typically need to enter when making debit card purchases online. Your CSC code is different from your personal identification number (PIN), which you usually need to use to complete purchases at the checkout or withdraw cash at ATMs.
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What Do You Need Before You Get a Debit Card?
To get a debit card, you generally need to open a checking account. The application process varies by institution, but you will likely need to provide:
• Your name, date of birth, and Social Security number
• Proof of address (such as a lease, mortgage statement, or utility bill)
• A government-issued photo ID (such as a driver’s license or passport)
• An initial deposit is required by some, but not all, banks
If you’re applying for a new bank account with a joint owner, they’ll need to provide their personal information and identification as well.
How to Get a New Debit Card
Once your account is open, here are the steps for how to get a debit card.
1. Request a Debit Card
If the bank doesn’t automatically issue you a new debit card when you open your account, you may need to request one. The bank will typically mail you your card, which can take anywhere from a few days to two weeks. If you need a card sooner you can request expedited delivery (but there may be a fee).
2. Activate Your Card
Once you receive your debit card, you’ll need to follow the instructions provided to activate it. This usually involves calling a phone number, going online, or visiting an ATM. Whatever method you choose, you will likely need to verify the card number, expiration date, and three-digit security code.
3. Set Your PIN
Either during the activation process or at a later date, you’ll need to set up a PIN, which is a (typically) four-digit numeric code used to verify your identity when making transactions. It acts as a password, ensuring that only you can access your funds. You’ll want to choose a PIN that you’ll remember but others can’t easily guess. If you ever forget your PIN, many banks allow customers to change or reset their debit card PIN via their website or mobile app’s debit help center.
The Benefits of Getting a Debit Card
There are several advantages to having a debit card. If you’re not using a debit card yet, here are some of the benefits you might be missing out on.
• Convenience: Debit cards allow easy access to funds for everyday transactions and online purchases. You can also link debit cards to mobile wallet apps for quick contactless payments when shopping in stores.
• No debt: With a debit card, you can generally only spend what you have in your account, avoiding credit card debt and interest.
• Quick access to cash: When you do need cash for payments, debit cards can be used at ATMs to withdraw money. In addition, some retailers allow you to get cash back at the checkout counter when making a purchase.
• Safe transactions: Debit card technology mirrors that of traditional credit cards and comes with features like chips, PINs, and other safety measures.
• Manage spending: Using a debit card for purchases and paying bills makes it easy to track your spending. By logging into your bank’s website or app, you can get an overview of what purchases were made, which can help with budgeting and money management.
• Rewards programs: Some debit cards offer rewards or cashback on purchases.
• Bill payments: You can often store your debit card information inside payment accounts for recurring monthly bill payments, which can simplify paying bills.
Debit Card Fees
While a debit card may be furnished by your bank at no charge to you, there are some potential fees to be aware of.
• ATM fees: ATM fees may apply when you use a machine that’s outside of your bank’s approved network. Your bank may charge you an out-of-network ATM fee and the owner of the ATM may also hit you with a fee.
• Monthly maintenance fees: Some banks charge a monthly fee for maintaining a checking account. This can often be waived with a minimum balance or direct deposit.
• Foreign transaction fees: If you use your debit card at an ATM or store outside of the U.S., you may need to pay a foreign transaction fee.
• Overdraft fees: If you have overdraft coverage and use your debit card to spend more than your account balance, your bank may cover the overage and charge you an overdraft fee.
• Replacement card fees: Losing your card or needing a replacement might result in a fee.
• Inactivity fees: Some banks charge a fee if your account remains inactive for a certain period.
Can You Get Denied for a Debit Card?
It’s possible to be denied a checking account and, subsequently, a debit card, if you have a negative banking history. While banks don’t typically report your checking and saving account activity to the consumer credit bureaus, any history of bounced checks, unpaid fees, and involuntary account closures may be accessible through ChexSystems, which is a reporting agency for the banking industry.
If you have negative information in your ChexSystems report, such as involuntary bank account closures, frequent overdrafts, or unpaid negative balances, you may get denied for a new bank account.
You may, however, be able to get a debit card with a second chance checking account. Second chance bank accounts are designed for people who may have had trouble with banking in the past and are trying to get back on track. These accounts may have limited features and benefits compared to traditional checking accounts, but they can be a good stepping stone for rebuilding banking history.
The Takeaway
Debit cards provide a convenient and secure way to manage your finances, offering benefits like eliminating the need to carry cash, secure transactions, and budgeting assistance.
Getting a debit card is a relatively simple process that begins with opening a checking account. You can improve your chances of getting approved for a debit card by maintaining a positive banking history, clearing any outstanding issues with previous banks, and ensuring your identification documents are in order.
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.
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FAQ
What things can’t you do with a debit card?
While debit cards are versatile, they come with some limitations. You generally can’t use a debit card for activities that require a hold larger than your available balance, such as renting a car or booking a hotel room. In addition, some online subscriptions and services may only accept credit cards. Also keep in mind that credit cards usually offer greater consumer protections on purchases related to fraud than debit cards.
What things can’t you do without a debit card?
Without a debit card, you may face difficulties accessing cash quickly. In addition, you won’t be able to make cashless in-store purchases using the funds in your checking account. Your only option for digital payment will be a credit card, which entails borrowing funds and, if you don’t pay your balance in full, paying interest.
Is the process of getting a debit card hard?
No, the process of getting a debit card is relatively simple. It involves opening a checking account with a bank or credit union. Depending on the institution, you may be able to open an account online or may need to visit a branch. Once your checking account is open, the bank or credit union will typically issue and mail your debit card to your address, which you then need to activate.
If you have a credit card, do you need a debit card?
While a credit card can cover many of your financial needs, it’s still a good idea to have a debit card. Debit cards provide direct access to your funds without incurring debt, which helps with budgeting and avoiding interest charges. You can use a debit card to withdraw cash from ATMs, make everyday purchases in person and online, and manage your expenses in real time. In addition, some merchants and service providers may prefer or require a debit card.
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.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit 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, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. SoFi members with direct deposit are eligible for other SoFi Plus benefits.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.50% 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 members with Qualifying Deposits are not eligible for other SoFi Plus benefits.
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 4.50% 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 8/27/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
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.
Finding and applying for low-income senior housing can feel like a daunting task, but it doesn’t have to be. There are various low-income senior housing options available through both government programs and the private market. This ApartmentGuide article will guide you on how to find these housing options, the qualifications needed, how to apply, and the different types of housing available for low-income seniors.
Whether you’re retiring in a downsized house for rent in Scottsdale, AZ, exploring senior living apartments in Naples, FL, or considering smaller rental communities in Asheville, NC, we’ll help you navigate the process.
What is low-income senior housing?
Low-income senior housing is a type of housing specifically designed to be affordable for seniors who have limited financial resources. These housing options are often subsidized by government programs, which helps to reduce rent costs to levels that are manageable based on a tenant’s income. Eligibility for low-income senior housing typically depends on both age (usually 62 or older) and income level, with specific income limits varying by location and program.
Types of low-income senior housing options
There are several types of low-income senior housing options available, each offering different levels of affordability and services:
Public housing
Managed by local housing authorities, public housing can provide rental assistance for eligible low-income seniors. Rent is typically set at 30% of the tenant’s adjusted gross income, making it an affordable option for those with very limited means.
Section 8 housing
This federal program, also known as the Housing Choice Voucher Program, helps low-income seniors afford private rental housing by subsidizing a portion of their rent. Seniors with Section 8 vouchers can choose their housing from the private market, as long as the landlord accepts the voucher and the rent meets the program’s limits.
Senior apartments with income-based rent
Senior living apartments based on income are apartment communities specifically for seniors, where rent is calculated based on income. These apartments often include senior-friendly amenities and services, creating a supportive living environment. Eligibility criteria and rent calculations vary, so it’s important to research each option.
Benefits of low-income senior housing
Low-income senior housing offers several benefits:
Affordable rent: The primary benefit of low-income senior housing is the reduced cost, which can make it easier for seniors on fixed incomes to manage their finances without sacrificing other essentials like healthcare or groceries.
Access to senior-specific amenities: Many low-income senior housing communities offer amenities tailored to older adults, such as on-site healthcare services, recreational activities, and transportation options.
Community environment: These housing options often foster a sense of community among residents, providing opportunities for social interaction and support from neighbors who are in similar stages of life.
Safety and security: These housing options often provide enhanced security features, such as emergency call systems, secure entrances, and regular wellness checks, giving residents and their families peace of mind.
Independence: These housing options allow seniors to maintain a level of independence while still receiving support when needed.
How to find low-income senior housing
When beginning your search for low-income senior housing, it’s essential to know where to look. Here are some key resources to help you get started:
Government housing websites: Websites like the U.S. Department of Housing and Urban Development (HUD) provide valuable information on low-income housing options and eligibility requirements, including Section 202 Supportive Housing for the Elderly, which is specifically designed for low-income seniors.
Local housing authorities: Your local or state housing authority can be a valuable resource for finding low-income senior housing. They manage public housing programs and often have information on other affordable housing options in your community.
Non-profit organizations: Many non-profits focus on providing housing assistance to seniors. Organizations like the National Council on Aging (NCOA) or local community groups can offer guidance and support in finding suitable housing. Also, AARP’s website has resources and articles discussing low-income senior housing options, including subsidized housing programs like Section 8 and public housing.
Online apartment search tools: Websites dedicated to apartment searches often have filters that allow you to search specifically for low-income or senior housing in a location of your choice. These tools can help you compare options and find available units that meet your needs.
Research and compare your housing options
Once you’ve identified potential housing options, the next step is to research and compare them:
Check for availability: Contact each housing option to verify availability, as waitlists are common in low-income senior housing. Understanding current availability will help you manage expectations and plan accordingly.
Understand the application process: Each housing option may have a different application process. Take the time to understand what documentation is required, deadlines, and any fees associated with applying.
Visit potential housing communities: If possible, visit the housing communities you’re interested in. This will give you a better sense of the living environment, amenities, and the community atmosphere, helping you make an informed decision.
What to consider when choosing a location
Choosing the right location is crucial for your comfort and well-being. Consider the following factors:
Proximity to family, healthcare, and essential services: Being close to loved ones can provide emotional support and practical assistance. Access to healthcare facilities and essential services like grocery stores and pharmacies is also important.
The neighborhood environment: Evaluate your potential neighborhood and the overall environment. Also think about what amenities are important to you, such as parks, libraries, community centers, or places of worship. Being close to these resources can enhance your daily life and provide opportunities for social interaction and recreation.
Availability of transportation: Consider the availability of public transportation or other reliable transit options. This can be especially important if you don’t drive or prefer not to rely on personal vehicles.
Cost of living: While the housing itself may be affordable, consider the overall cost of living in the area, including groceries, utilities, and other necessities. Some areas may be more expensive than others, which could impact your budget.
Availability of support services: If you anticipate needing additional support, such as home care or meal delivery services, check whether these are readily available in the area. Some locations may offer more comprehensive support services than others.
How to apply for low-income senior housing
Preparing your application
Getting ready to apply for low-income senior housing requires careful preparation. Here’s how to ensure you’re fully prepared:
Gather necessary documentation: Collect all required documents, such as proof of income (e.g., Social Security statements, pension information), identification (driver’s license, birth certificate), and any other documentation specified by the housing provider. Having these ready in advance will streamline the application process.
Understanding the application requirements: Each housing option may have specific requirements. Carefully review the application instructions to ensure you meet all the criteria, such as income limits and age requirements. If you’re unsure about any part of the application, reach out to the housing provider for clarification.
Navigating the application process
Once you’ve prepared your documents and understood the requirements, it’s time to actually apply:
Fill out the application form: Complete the application form thoroughly and accurately. Pay close attention to detail, as errors or omissions can delay processing or result in a rejected application.
Submit additional documents as needed: In addition to the application form, you may need to submit extra documents, such as bank statements or medical records. Ensure all additional paperwork is included and correctly labeled.
Follow up on your application status: After submitting your application, it’s important to follow up with the housing provider to check the status. Regular follow-ups demonstrate your interest and can help keep your application moving through the process.
What to do if you’re put on the waitlist
It’s common to be placed on a waitlist for low-income senior housing. Here’s how to handle that situation:
How waitlists work: Waitlists are often based on a first-come, first-served basis, but some housing providers may prioritize certain applicants, such as those with urgent needs. Understanding how the waitlist operates for the specific housing you’re applying to can help you manage expectations.
Tips for managing wait times and exploring alternative options: While on the waitlist, continue exploring other housing options. Applying to multiple locations can increase your chances of securing a place sooner. Additionally, keep in touch with the housing provider to stay informed about your position on the waitlist and any changes.
4 tips to improve your chances of approval
To enhance your chances of securing low-income senior housing, consider these strategies:
Ensure all paperwork is complete and accurate: Before submitting your application, review all paperwork to ensure accuracy and completeness. Simple mistakes can lead to delays or disqualification, so it’s crucial to be thorough.
Get recommendations and references: Secure letters from previous landlords or community leaders. Strong references can bolster your application. Ask previous landlords, community leaders, or social workers to provide a letter of recommendation that speaks to your reliability as a tenant.
Be proactive and persistent: Follow up regularly with housing authorities. Demonstrating your commitment by checking in with housing authorities or landlords can keep your application top of mind. Persistence can sometimes make the difference in a competitive housing market.
Consider applying to multiple housing options: Expand your search to increase your chances of finding a place. Don’t limit yourself to one or two options. Apply to multiple low-income senior housing communities to broaden your opportunities. The more places you apply to, the better your chances of finding a suitable home.
The information contained in this article does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional financial or legal advice as they may deem it necessary.
Whether you’re looking to rent in Baltimore or searching for an apartment in Annapolis, Maryland has something for everyone. Known for its rich history and coastal beauty, living in the Old Line State comes with plenty of surprises. Here are 15 fun facts about Maryland that make the state so unique.
1. Maryland has the oldest state capitol still in legislative use
The Maryland State House in Annapolis has been in continuous use since 1772. It served as the U.S. Capitol from 1783 to 1784. The iconic wooden dome, completed in 1797, is held together without nails. Today, it’s still the active capitol building of Maryland.
2. Maryland gave birth to the national anthem
Francis Scott Key wrote “The Star-Spangled Banner” during the War of 1812. He penned it while watching the British bombard Fort McHenry in Baltimore. The flag that inspired him had 15 stars and 15 stripes. His poem became the national anthem in 1931
3. The first American railroad began in Maryland
The Baltimore and Ohio Railroad was chartered in 1827. It was the first U.S. railroad to offer both freight and passenger service. The original route connected Baltimore to the Ohio River and cities like Chicago and Cleveland. Though it’s no longer active, this railroad revolutionized American transportation and commerce.
4. Maryland is known for its delicious blue crabs
Chesapeake Bay is famous for its blue crabs, a Maryland delicacy. Locals celebrate the crab season with crab feasts and festivals like the Maryland Seafood Festival. Crab cakes, made from lump crab meat, are a regional specialty. Marylanders take their crab dishes seriously.
5. The first dental school in the world opened in Baltimore
The Baltimore College of Dental Surgery was established in 1840. It was the first school to offer a Doctor of Dental Surgery degree. The school set the standard for dental education globally. It later became part of the University of Maryland.
6. Maryland’s state sport is jousting
While other states opted for more modern options, Maryland chose to go the vintage route. Jousting became Maryland’s official state sport in 1962. This medieval competition involves knights on horseback trying to spear rings. Maryland hosts jousting tournaments annually, continuing the tradition. If you’re looking for unique things to do in Maryland, you might consider giving this old-school sport a try.
7. The U.S. Naval Academy is in Annapolis
Founded in 1845, the U.S. Naval Academy prepares officers for the Navy and Marine Corps. Its campus is located along the Severn River. The Academy is known for its rigorous training and prestigious reputation. Many notable leaders have graduated from this institution.
8. Maryland was home to the first successful manned balloon launch in the U.S.
In 1784, a Frenchman named Jean-Pierre Blanchard launched a hot air balloon in Baltimore. The event attracted thousands of spectators. Blanchard later became known as a pioneering balloonist in Europe.
9. Maryland has one of the most unique state flags
Maryland’s flag is the only state flag based on English heraldry. It features the family crests of George Calvert, 1st Baron Baltimore. The flag’s bold design includes gold, black, red, and white. It stands out as one of the most distinctive flags in the United States.
10. Harriet Tubman was born in Maryland
Tubman, a famed abolitionist, was born into slavery in Dorchester County. She escaped and led hundreds to freedom via the Underground Railroad. Her bravery and leadership are celebrated nationwide. Maryland honors her legacy with the Harriet Tubman Underground Railroad National Historical Park.
11. Maryland is home to the oldest continuously published newspaper
The Maryland Gazette, first published in 1727, is the oldest continuously published newspaper in the United States. The paper played a vital role in colonial and revolutionary America.
12. Maryland was the seventh state to join the Union
One of the original 13 colonies, Maryland ratified the U.S. Constitution on April 28, 1788. It played a crucial role in the formation of the nation. The state’s strategic location was vital during the Revolutionary War.
13. The Baltimore Basilica is the oldest Catholic cathedral in the U.S.
Completed in 1821, the Basilica of the National Shrine of the Assumption of the Blessed Virgin Mary is an architectural gem. It was the first Roman Catholic cathedral built in America. Its design reflects neoclassical style, inspired by America’s ideals.
14. The first umbrella factory in the U.S. opened in Baltimore
In 1828, the Beehler Umbrella Factory began operations. It became a major producer of umbrellas, setting industry standards. The factory’s success marked Baltimore as a center of manufacturing. Umbrellas became more affordable and accessible nationwide.
15. Maryland hosts the Preakness Stakes, a famous horse race
The Preakness Stakes, held at Pimlico Race Course, is the second leg of the Triple Crown. It began in 1873, attracting top thoroughbreds. The race is an iconic Maryland tradition, drawing large crowds every May. Winning the Preakness is a prestigious honor in horse racing.
Living in Hawaii offers unique experiences, from stunning landscapes to fascinating culture. Whether you’re looking to rent in Honolulu or searching for an apartment in Hilo, these fun facts about the Aloha State will give you more reasons to appreciate this island paradise.
1. Hawaii is the only U.S. state composed entirely of islands.
Hawaii consists of 137 islands, but only eight are considered the main islands. The largest island, Hawai’i (also known simply as the Big Island) is more than twice the size of all the other islands combined. Oahu, home to the capital city Honolulu, is the third-largest island.
2. The Hawaiian language has only 13 letters.
The Hawaiian alphabet includes five vowels (A, E, I, O, U) and eight consonants (H, K, L, M, N, P, W, and the ʻokina). The ʻokina, a glottal stop, acts as a letter in the language. Many place names in Hawaii include repetitive sounds, reflecting the language’s simplicity.
3. Hawaii has its own time zone with no daylight saving time.
Hawaii follows Hawaii-Aleutian Standard Time (HST), which is 10 hours behind Coordinated Universal Time (UTC-10). The state does not observe daylight saving time, so the time difference with the mainland changes throughout the year. In the winter, Hawaii is two hours behind the West Coast, but during the summer, it’s three hours.
4. Hawaii is the only state that grows coffee commercially.
While most states have to import their coffee, Hawaiians can enjoy it fresh from the source. The rich volcanic soil and ideal climate make Hawaii perfect for coffee farming. Kona coffee, grown on the Big Island, is famous worldwide for its smooth, rich flavor. Coffee farms can also be found on Maui, Oahu, and Kauai. The industry plays a significant role in the local economy, attracting many tourists. Living in Hawaii means you can enjoy fresh, locally grown coffee daily.
5. The islands of Hawaii are still growing.
The Hawaiian Islands were formed by volcanic activity, and this process continues today. Kīlauea, one of the world’s most active volcanoes, constantly adds new land to the Big Island. The island’s southeastern coast has seen significant changes in recent years due to lava flows. Volcanic activity also creates black sand beaches, which are unique to the area..
6. Hawaii was once an independent kingdom.
Before becoming a U.S. state, Hawaii was an independent kingdom with its own monarchy. King Kamehameha I united the islands in 1810, establishing the Kingdom of Hawaii. The monarchy lasted until 1893, when it was overthrown by American and European settlers. In 1898, Hawaii was annexed by the United States, and it became the 50th state in 1959.
7. Surfing was invented in Hawaii.
Surfing, a sport now enjoyed worldwide, originated in Hawaii. Ancient Hawaiians viewed surfing as more than a sport; it was a spiritual experience. The chiefs, or ali‘i, often competed in surfing, showcasing their strength and skill. Today, Hawaii remains a global surfing destination, with famous spots like Waimea Bay (near Pupukea) and the Banzai Pipeline. Living in Hawaii, you can embrace this sport’s deep cultural roots.
8. Hawaii is home to the world’s largest dormant volcano.
Mauna Kea, located on the Big Island, is the world’s largest dormant volcano. Standing over 13,800 feet above sea level, it is taller than Mount Everest when measured from its oceanic base. The summit often receives snowfall in winter, making it a unique spot in tropical Hawaii. The clear skies above Mauna Kea make it a prime location for astronomical observatories.
9. Hawaii has no snakes.
Due to strict laws and natural barriers, Hawaii remains snake-free. The state takes this seriously, as introducing snakes could harm the delicate ecosystem. The only snakes you might see are in zoos or brought illegally, with severe penalties for smuggling them.
10. Hawaii celebrates its own holidays.
Beyond the usual U.S. holidays, Hawaii celebrates several unique ones. King Kamehameha Day on June 11 honors the first king of the Hawaiian Islands. Prince Kuhio Day on March 26 commemorates the birth of Prince Jonah Kūhiō Kalanianaʻole, a Hawaiian royal. The Aloha Festivals, held annually in September, celebrate Hawaiian culture with parades, music, and hula.
11. Hawaii has the highest life expectancy in the United States.
Hawaii consistently ranks as the U.S. state with the highest life expectancy. The combination of a healthy diet, active lifestyle, and strong community ties contributes to this longevity. The state’s natural beauty and relaxed pace also reduce stress, promoting well-being. Residents often enjoy fresh seafood, tropical fruits, and outdoor activities year-round. Living in Hawaii seems to be a key to a long and healthy life.
12. Rainbows are a common sight in Hawaii.
Hawaii’s unique climate and topography create prime conditions for rainbows. The islands’ frequent rain showers and abundant sunshine result in vibrant rainbows, often visible across the sky. Double rainbows are also a regular occurrence, adding to the islands’ natural beauty. The state is also nicknamed the “Rainbow State” for this reason.
13. Hawaii has the most isolated population center on earth.
Hawaii lies over 2,000 miles from the nearest mainland, making it the most isolated population center on the planet. This remoteness creates a unique culture and lifestyle distinct from the rest of the U.S. Unfortunately, this isolation also affects the cost of living, as many goods must be imported. However, it also fosters a strong sense of community among residents.
14. Hawaii is home to the world’s most active volcano.
Kīlauea, located on the Big Island, is the world’s most active volcano. It has been erupting almost continuously since 1983, creating new land and reshaping the island’s landscape. The eruptions often draw visitors, eager to witness the molten lava flows. Despite the dangers, many people live nearby, drawn by the fertile land and stunning scenery.
15. Hawaii has a ban on billboards.
To preserve its natural beauty, Hawaii has banned billboards across the state. This law, enacted in 1927, ensures that the islands’ stunning landscapes remain unobstructed. Instead of advertisements, the scenery takes center stage as you travel through the islands. This absence of billboards contributes to the state’s peaceful, unspoiled atmosphere.
Finding affordable housing can be a challenging journey, but Section 8 housing offers a vital lifeline for many low-income families and individuals.
Whether you’re looking for a rental in Portland, an apartment in Pittsburgh, or a house for rent in Bellevue, WA , this ApartmentGuide article will help you navigate the qualifications and application process. Our goal is to make it easier for you to secure a Section 8 voucher and find suitable affordable housing, providing you with the support and information you need every step of the way.
What is section 8 housing?
Section 8 housing, also known as the Housing Choice Voucher Program, is a federal program administered by the Department of Housing and Urban Development (HUD) that provides rental assistance to low-income individuals and families. The program aims to help these households afford decent, safe, and sanitary housing in the private market. Unlike other forms of public housing, Section 8 allows participants to choose their housing, provided the unit meets HUD’s health and safety standards and the landlord agrees to accept the Section 8 voucher.
There are two main types of Section 8 housing assistance:
Project-based section 8: This assistance is tied to specific housing units or apartment complexes. Tenants who qualify for project-based Section 8 live in designated properties where the rental subsidy is directly attached to the property.
Housing Choice Voucher Program: This program provides eligible participants with a voucher that they can use to rent housing in the private market. The voucher covers a portion of the rent, and the tenant is responsible for paying the remaining amount. The flexibility of this program allows participants to choose their housing location, provided it meets program requirements.
How to qualify for Section 8 apartments
Qualifying for Section 8 housing involves meeting specific eligibility criteria set by HUD and local Public Housing Agencies (PHAs). Because Housing Choice Vouchers are administered locally, there isn’t a single defined national standard for how Section 8 voucher recipients are chosen. Generally, eligibility is based on local median income levels and housing costs. However, there are some overarching guidelines that can help determine eligibility.
Here are the main steps and criteria to qualify:
Income limits: The primary qualification for Section 8 housing is based on income. Applicants must have a household income below 50% of the median income for their area, adjusted for family size. PHAs may also prioritize applicants with incomes below 30% of the median income.
The HUD sets income limits annually. They’re segmented in three categories: extremely low income, very low income and low income. The income levels depend on the area’s median income level. Here’s what that breakdown looks like:
Extremely Low Income: 30 percent of the area’s median income level
Very Low Income: 50 percent of the area’s median income level
Low Income: 80 percent of the area’s median income level
Family composition: Section 8 housing is only available to households that meet the Public Housing Agency (PHA)’s requirements for each individual. The program defines a household as any group of people living together who meet these criteria.
Citizenship status: Applicants must be U.S. citizens or eligible non-citizens. Verification of citizenship or immigration status is required during the application process.
Background check: PHAs may conduct background checks to review applicants’ histories and ensure compliance with program guidelines. Certain findings in the background check may affect eligibility, for example if there are evictions on your record you may not be eligible for Section 8.
Application process: To apply for Section 8 housing, individuals must contact their local PHA. The application process typically involves filling out a pre-application form, providing documentation of income and family composition, and attending an interview. Due to high demand, there may be waiting lists, and some PHAs use a lottery system to manage applications.
Housing quality standards: Once approved, applicants receive a voucher and can begin searching for housing. The chosen unit must meet HUD’s Housing Quality Standards (HQS) to ensure it is safe and habitable. PHAs will inspect the unit before finalizing the rental agreement.
Rent calculation: The amount of rental assistance provided is based on the household’s income. Generally, participants are required to pay 30% of their adjusted monthly income towards rent and utilities, while the voucher covers the remaining cost up to a predetermined limit.
By meeting these criteria and successfully navigating the application process, eligible individuals and families can receive the rental assistance they need to secure affordable housing through the Section 8 program.
How to apply for Section 8 apartments in 10 steps
Applying for Section 8 apartments involves several steps. Here is a straightforward guide to help you through the process:
Find your local Public Housing Agency (PHA): Start by locating the PHA in your area. You can find a list of PHAs on the HUD website or by doing a quick online search.
Check eligibility requirements: Ensure you meet the eligibility criteria, which generally include income limits, family composition, and citizenship status. Each PHA may have slightly different requirements.
Obtain and complete the application: Request an application form from your local PHA. Some PHAs allow you to apply online, while others may require you to submit a paper application. Fill out the application form with accurate and complete information. You will need to provide details about your household income, family size, and current living situation.
Submit required documentation: Along with your application, you will need to submit various documents, such as proof of income (pay stubs, tax returns), identification (birth certificates, Social Security cards), and proof of residency or citizenship.
Attend an interview: After submitting your application, you may be invited to an interview with a PHA representative. A local agency will review your application and take a look at your finances. During this interview, you will discuss your application and provide any additional information or documentation requested.
Wait for approval: Once your application is complete, it will be placed on a waiting list. Due to high demand, there may be a long waiting period before you receive assistance, some people wait months to years for approval. Some PHAs use a lottery system to manage their waiting lists.
Receive your voucher: If approved, you will receive a housing choice voucher. This voucher allows you to search for suitable housing in the private market that meets program requirements.
Find a housing unit: Look for rental units that accept Section 8 vouchers. The unit must meet HUD’s Housing Quality Standards (HQS), and the landlord must agree to participate in the program.
PHA inspection and approval: Once you find a unit, the PHA will conduct an inspection to ensure it meets HQS. If the unit passes inspection, the PHA will approve the rental agreement.
Sign the lease: After the unit is approved, you will sign a lease with the landlord and begin paying your share of the rent. The PHA will pay the remaining portion directly to the landlord.
How to calculate Section 8 rent
Remember, Section 8 housing assistance is calculated based on your household’s income. The goal is to ensure you pay no more than 30% of your adjusted monthly income on rent and utilities. Here’s a simple breakdown of how it works:
Determine gross income: Calculate the total income of all household members before taxes and other deductions.
Adjustments and deductions: Apply any allowable deductions, such as for dependents, specific family members, or medical expenses, to get the adjusted income.
Calculate tenant’s share: You will generally pay 30% of your adjusted monthly income toward rent and utilities.
Voucher payment: The Section 8 voucher covers the remaining portion of the rent, up to a specified limit based on local fair market rents.
Example:
Gross monthly income: $2,000
Allowable deductions: $200
Adjusted monthly income: $1,800
Tenant’s share: 30% of $1,800 = $540
If the rent and utilities for the chosen unit total $1,200, the voucher would cover the difference:
Voucher payment: $1,200 – $540 = $660
This ensures the rent is affordable based on your income.
What to do if you don’t qualify for Section 8 housing
If you find that you don’t qualify for Section 8 housing, there are several alternative steps you can take to secure affordable housing and financial assistance:
Explore other housing assistance programs: Look into other federal, state, and local housing programs. Programs like Public Housing, USDA Rural Development housing, and state-specific housing assistance might have different eligibility requirements.
Apply for Low-Income Housing Tax Credit (LIHTC) properties: These properties are privately owned, but offer reduced rents to low-income tenants. Check with your local housing authority for a list of LIHTC properties.
Seek emergency rental assistance: Various nonprofit organizations, charities, and local government programs offer emergency rental assistance to help with immediate housing needs. Organizations like the Salvation Army, United Way, and local charities can be valuable resources.
Consider subsidized housing: Some apartment complexes offer their own rent subsidies for low-income tenants. Contact property management companies directly to inquire about subsidized units.
Utilize housing counseling services: HUD-approved housing counseling agencies can provide advice and assistance in finding affordable housing options, budgeting, and understanding your rights as a tenant.
Look for affordable market-rate housing: Search for market-rate housing options within your budget. Websites and local classifieds can help you find affordable rental units. Negotiating with landlords or seeking roommate arrangements might also reduce housing costs.
Reapply when circumstances change: If your situation changes, such as a reduction in income or changes in family composition, you may become eligible for Section 8. Keep updated with your local PHA and reapply if your circumstances align with eligibility criteria in the future.
Useful links to get you going on your application
The process to apply and get approved for a Section 8 housing voucher is a process that requires research and diligent follow-through.
Make sure you have all of your paperwork ready. Write down any questions you may have and reach out to your local PHA to get them answered.
Here are useful links to bookmark, in the process:
The information contained in this article is for educational purposes only and does not, and is not intended to, constitute legal or financial advice. Readers are encouraged to seek professional financial or legal advice as they may deem it necessary.
If you’re on TikTok or Reddit, it’s likely you’ve come across a tenacious rumor: That it’s better to invest in life insurance than a 401(k) for retirement. So, is it true?
Life insurance vs. 401(k)
Life insurance isn’t an investment, while a 401(k) is a type of investment account offered through your employer. Permanent life insurance (which offers lifelong coverage) isn’t an investment, and its exorbitant fees erode the money you pay into your policy and any earnings you might make for the first decade.
“It was very strange to me that there were so many life insurance salespeople all over TikTok, basically soapboxing about life insurance, like it was the next big thing like it was the most amazing investment on Earth,” says Vivian Tu, founder of Your Rich Bff, a TikTok channel that focuses on financial education, based in Miami Beach, Florida.
Can life insurance grow like an investment account?
In some cases, yes. There are some types of life insurance, such as whole life insurance or universal life insurance, that have the ability to increase in cash value. But how do some of those policies earn money like an investment return? By tracking market indexes.
One of the features touted by TikTok influencers is that returns made on insurance policies aren’t affected by the overall stock market, but that isn’t necessarily true. The insurance companies may invest in the stock market with part of their portfolio, which is technically a portion of a policy owner’s premium. Though some policies provide fixed returns, some depend on current interest rates and investments. Some policies have you pick the stock or bond indexes for your policy to mirror, such as the S&P 500, and the insurance company pays you interest based on how those indexes perform.
Life insurance vs. 401(k): Fees
If life insurance can earn stock market interest in a way similar to that of a 401(k), what’s the issue?
The issue is that, depending on the policy, the staggering fees insurance policies charge often wipe out the amount you would get back from those premiums and any investment returns.
For example, if you pay the premium for seven to 10 years, most of those premiums go toward the cost of providing that insurance. In addition, there are administrative fees and the agent’s commission, though you may not see a commission listed on a statement and it may be difficult to figure out exactly how much those commissions are. Those commissions aren’t a one-time payment: You may continue to pay them for seven to 10 years, or as long as the policy is active.
The premiums you pay that cover fees don’t sit in an account waiting for you to cash them in. If you pay into a 401(k) for a decade, you get to keep all that money less any fees and investment losses. With an insurance product, it’s only after a decade (again, depending on your policy) of monthly payments that you actually start accruing premium money and interest in a cash value account the insurance company holds for you.
That interest percentage is less than you can get in a high-yield savings account and far less than the stock market’s long-term average of 10% (not accounting for inflation).
Insurance policies also have significant surrender charges, which are fees you have to pay if you withdraw money from your policy early. These charges are often so large that they can dramatically reduce the net value of your policy until the first few years pass.
For example, if you wanted to take money out of your policy after the first two years, your surrender charge would likely be so high that there would be little to no money to take out. These charges eventually reduce to zero, but it can take 10 to 16 years.
While 401(k)s do charge a 10% penalty if you want to take money out of your account before you’re 59½, that 10% is likely to be far less than a surrender charge. Plus, there are lots of exceptions to the 401(k)’s 10% penalty, including disabilities, the birth of a child, medical expenses and emergency personal expenses.
If you were to invest in the stock market through a 401(k), you wouldn’t lose 10 years’ worth of investment dollars to the cost of insurance, and your management fee would likely be less than 1%.
“The idea that 401(k) fees are higher than an insurance product that would be serving as an investment, I don’t even know how you support that idea,” says Georgia Lee Hussey, a certified financial planner and founder of Modernist Financial, a wealth management firm in Portland, Oregon.
Insurance fees are complex
In addition to paying commissions and exceptionally high fees, you may not even know how much you’re paying because insurance fee structures are so complicated.
“Whole life policies are basically called the black box of insurance policies. You can’t really see what’s happening inside them,” Hussey says. “You can understand the internal expense ratio sometimes but you usually have to go deep into the disclosure documents to understand what the insurance company is really getting paid.”
If you purchase insurance through an agent or broker (or a TikTok influencer), it’s possible that that person will be making a commission, and that’s on you to figure out.
“When you actually look into it, you realize that all of these people are, in fact, life insurance brokers. They don’t even work at life insurance companies that provide the policies,” Tu says. “The vast majority of them are not fiduciaries, so they are not legally obligated to do right by you financially.”
On the topic of using insurance to invest, it’s good to remember two cardinal rules of investing: If it sounds too good to be true, it probably is. And if you can’t explain it clearly to a friend, you probably don’t understand it, which could be a sign to steer clear.
As Tu says: “It’s insurance. It’s not an investment.”
Looking for the best ways to get free money from the government? Getting free money from the government might sound too good to be true, but there are actually several ways you can receive financial assistance. From helping with monthly expenses to finding unclaimed funds, these programs and resources can be a big help. The…
Looking for the best ways to get free money from the government?
Getting free money from the government might sound too good to be true, but there are actually several ways you can receive financial assistance. From helping with monthly expenses to finding unclaimed funds, these programs and resources can be a big help. The key is knowing where to look and meeting eligibility requirements.
This article will show you different ways to get extra money from the government. Whether you need help with your bills or want to get back money that belongs to you, there are many options for you.
Best Ways To Get Free Money From the Government
Below are the best ways to get free money from the government – for housing, children, health insurance, food, and more.
1. Apply for unemployment benefits
If you lose your job, you might be eligible for unemployment benefits. These benefits can help you cover some of your expenses while you look for a new job.
To qualify, you usually need to have worked a certain amount of time in the past year. Each state has its own rules, so you should check your state’s specific requirements.
You can apply for unemployment benefits online or by phone, and be ready to provide details about your recent jobs and earnings. This will help determine how much you can get each week.
The benefit amount is based on a percentage of your earnings from your previous job. It can range from about 40% to 60% of your past earnings. This money can be a helpful bridge while you search for new work.
Each week, you’ll need to report if you’re still unemployed and looking for a job. Some states may also ask you to document your job search activities so it’s important to follow these rules to keep receiving benefits.
Unemployment benefits probably won’t cover all your expenses, but they can make a tough time a little easier. Remember to apply as soon as you lose your job to start getting support right away.
2. Check for child tax credits
Child tax credits can be a big help for families.
You might be able to get money back from the government if you have kids such as for childcare or for just having children. The amount you can get depends on your income and the number of kids you have.
The Child Tax Credit now gives up to $2,000 for each child.
Make sure you check if you qualify for these credits. You can find out more by visiting the IRS website or talking to a tax expert.
3. Women, Infants, and Children (WIC)
The Women, Infants, and Children (WIC) program helps pregnant women, new mothers, and young children get healthy foods. This program is a great way to get extra help when you need it the most, and this is free government money for low-income families. It’s focused on keeping you and your little ones healthy and well-fed.
If you’re pregnant, you can get help right away and continue to receive it for up to six months after giving birth. If you have children, they have to be under the age of 5.
To qualify, you need to meet income guidelines and show that you are at nutritional risk. This can include being underweight or having a diet low in essential nutrients. WIC then provides monthly benefits that can be used to buy specific foods like milk, eggs, and fruits.
To apply, you need to contact your state or local WIC office (you can start by Googling “WIC + your state name”). They will tell you what documents to bring and where to go for your appointment.
4. Use SNAP for food assistance
SNAP stands for Supplemental Nutrition Assistance Program. It’s a government program that helps low-income families buy healthy food. If you qualify, you get an EBT card loaded with funds every month.
Using SNAP is easy. You can use your EBT card at most grocery stores and it works just like a debit card.
To qualify for SNAP, you need to meet certain income and other eligibility requirements. These can include having a low income based on your household size.
SNAP can be a huge help if you’re struggling to afford groceries. It allows you to buy essential foods like fruits, vegetables, meats, and dairy products.
5. Free and reduced breakfast and lunch at school
Your child may be able to get free or reduced-price meals at school through several programs, and these programs make sure kids have healthy meals every day.
The most well-known program is the National School Lunch Program (NSLP). It provides low-cost or free lunches to millions of children in public and nonprofit private schools.
Schools many times also have the School Breakfast Program. This is similar to the lunch program but focuses on providing a nutritious morning meal.
In addition to these programs, there is the Special Milk Program. This program provides milk to children who do not participate in other meal programs.
Some schools offer the Community Eligibility Provision (CEP). This allows schools in high-need areas to serve breakfast and lunch at no cost.
To find out if your child is eligible, check with your school. They can guide you through the application process and let you know what your child qualifies for.
6. Seek Temporary Assistance for Needy Families (TANF)
Temporary Assistance for Needy Families (TANF) is a government program that can help you if you’re facing hard times. It provides financial aid to families with children who are struggling to make ends meet and can help with childcare, job training, and finding work.
To apply for TANF, you need to contact your local TANF office. They will help you through the application process and let you know what documents you need.
It’s important to know that each state runs its own TANF program, so the benefits and services might vary. Be sure to ask your local office (you can also reach out to the U.S. Department of Health and Human Services) what specific help they can offer.
7. Low-Income Home Energy Assistance Program (LIHEAP)
If you need help paying your energy bills, you might qualify for the Low-Income Home Energy Assistance Program (LIHEAP). This program helps low-income households with their heating and cooling costs.
LIHEAP provides federal funds to reduce energy costs. This can include help with your energy bills and dealing with energy crises.
You can also get help making your home more energy-efficient. This is known as weatherization and might include things like adding insulation or fixing drafty windows.
8. Early Intervention and Head Start
Early Intervention services are great for families with young children who have special needs. These services help kids from birth to age three. They offer things like speech therapy, occupational therapy, and more. Most services are free, and others have a sliding scale fee. They make sure your child gets the help they need, even if you can’t pay.
Head Start programs are for kids aged three to five. They help with early learning and development. Head Start also supports families with health and dental services.
Both Early Intervention and Head Start focus on getting kids ready for school. They help children learn and grow in important ways and also support families by connecting them to resources they may need.
You can usually self-refer your child to these programs (each state has its own), or ask your pediatrician for a referral.
9. Apply for college grants
College grants are a great way to get free money for school. Unlike loans, you don’t have to pay back grants. They can help cover your tuition, books, and other school expenses.
One of the most well-known grants is the Pell Grant. For the 2023-24 school year, the maximum Pell Grant is $7,395. This grant is for students with financial need.
Another option is the Federal Supplemental Educational Opportunity Grant (FSEOG). This is for students with exceptional financial need. The amount you can get depends on your school and your financial situation.
To apply for these grants, you’ll need to complete the Free Application for Federal Student Aid (FAFSA). The FAFSA helps the government determine how much aid you qualify for.
Many states and schools also offer their own grants. Check with your school’s financial aid office to see what you might be eligible for. It’s a good idea to apply for as many grants as you can.
Grants can make a big difference in paying for college, so it’s worth the effort to apply. Make sure to look for scholarships too!
10. Public Student Loan Forgiveness (PSLF) program
The Public Student Loan Forgiveness (PSLF) program can help if you work in public service. This includes jobs like teaching, nursing, firefighting, and more. If you work in these fields and have federal student loans, you may be able to get your remaining loan balance forgiven after ten years of payments.
To qualify, you must work full-time for a qualified government or nonprofit organization. You also need to make 120 qualifying monthly payments under a qualifying repayment plan. Only payments made after October 1, 2007, count toward the 120 payments required.
The program mainly benefits people who work in low-paying, but important, public service jobs. It’s a way to give back while also getting financial relief. Though the application process can be long and require careful tracking, many find the effort worth it when their loans are wiped out.
11. Claim Earned Income Tax Credit (EITC)
The Earned Income Tax Credit (EITC) gives low- to moderate-income workers and families a tax break.
If your income is under a certain amount, you might qualify. This credit can either reduce the taxes you owe or increase your refund. For 2024, the EITC amounts can go up to $3,995, based on your income and family size.
To claim the EITC, you need to file a tax return, even if you do not owe any taxes. You should fill out Form 1040 and a Schedule EIC if you have qualifying children.
12. Get housing vouchers
Housing vouchers are a great way to get help with rent. They are commonly known as Section 8. These vouchers help low-income families, seniors, and people with disabilities afford safe and decent housing.
To get a voucher, your income must be below a certain level and this varies by location and family size.
With a voucher, you can choose any housing that meets program requirements. This gives you some freedom to pick a home that suits your needs best. The government will pay part of the rent, making it more affordable for you.
13. See if you qualify for down payment assistance
Buying a home can be tough, especially when it comes to saving for a down payment. That’s where down payment assistance programs can help prospective homeowners.
These programs come in many forms. You might find grants, loans, or other types of aid to help you with the down payment. Each state offers different programs and some are more generous than others.
To qualify, you’ll need to meet certain requirements. These can include income limits or being a first-time homebuyer.
14. Apply for Supplemental Security Income (SSI)
Supplemental Security Income (SSI) is a program that gives monthly payments to people who are disabled, blind, or over 65 and have limited income. You may get help with food, rent, and medical bills.
To apply for SSI, visit the Social Security Administration (SSA) website. There, you can find the application forms and details about the process. You may need to provide information about your finances and living situation.
The application can be done online, by phone, or in person. If you’re under 18 or applying for someone under 18, there are special forms for children.
15. Look for health insurance in the marketplace
We all know that health insurance can be very expensive. Before you skip it, I highly recommend comparing pricing of health insurance on the Health Insurance Marketplace to see if you can find something more affordable for you and your family.
It’s a great way to get coverage and possibly save money. Sometimes, if you qualify, you can get free or low-cost health insurance plans.
Go to Healthcare.gov to start, and each state has its own Marketplace, so follow the specific steps for your state. It can be a little confusing, so make sure you have no distractions and can spend some time doing this.
During the open enrollment period, you can choose a new plan or keep your current one. If you’ve had a big life event, like losing your job, you might qualify to sign up outside the usual enrollment times.
16. Medicaid
Medicaid is a state and federal program that helps people with low incomes get health care. If you qualify, you can receive free or low-cost medical services, like doctor visits, hospital stays, and even prescription drugs.
Medicaid is especially helpful for families, pregnant women, seniors, and people with disabilities.
One of the best parts is that Medicaid covers a wide range of services – you can get help with dental care, mental health services, and even long-term care.
Your income and family size usually determine if you can get Medicaid.
17. Search for unclaimed money
You might have unclaimed money waiting for you. This money comes from many sources like unpaid wages, forgotten bank accounts, or unclaimed insurance benefits.
You can check by going to unclaimed.org, the website managed by the National Association of Unclaimed Property Administrators (NAUPA).
Each state has its own database for unclaimed property. Check your state’s website to see if there is money owed to you.
Frequently Asked Questions
There are several ways you can get money from the government to help with different needs, like paying for food or getting extra support if you don’t make a lot of money.
What ways can I get money from the government?
There are many ways to get free government money. You can apply for unemployment benefits if you lose your job. Families can also check for child tax credits, which give extra money for children. Programs like WIC and SNAP can help with paying for food, and students can get free and reduced breakfast and lunch at school.
How can I get help from the government if I don’t make a lot of money?
Low-income families can use programs like WIC (Women, Infants, and Children), SNAP (Supplemental Nutrition Assistance Program), TANF (Temporary Assistance for Needy Families), LIHEAP (Low-Income Home Energy Assistance Program), and more to get help from the government if they don’t make a lot of money.
How can I borrow money from the government?
The government offers student loans for education through programs like FAFSA. Small businesses can apply for loans from the Small Business Administration (SBA). There are also some loan programs based on specific needs like starting a farm or buying a home.
What is FAFSA?
FAFSA stands for Free Application for Federal Student Aid. It’s a form that students fill out to get financial aid for college. It can help you get grants, loans, and work-study opportunities to pay for your education.
Can I borrow money from my social security benefits?
No, you cannot borrow money from your Social Security benefits. Social Security is designed to provide income during retirement or if you become disabled, so it’s not a source of loans or advance cash.
Is there free grant money for bills and personal use?
Yes, there can be grants for specific needs like paying utility bills or home repairs. You might also find grants for education, food, and health care. Check with local and federal agencies to see if you qualify for any of these grants.
How do I find out if I qualify for any government assistance?
You can visit government websites or contact local agencies. Many state and local governments have online tools to check your eligibility. It’s also helpful to reach out to community organizations that can guide you through the application process.
How To Get Free Money From the Government – Summary
I hope you enjoyed this article on the best ways to get free money from the government.
There are many ways to get free money from the government, such as for housing, to help pay for your children’s expenses, to afford health insurance, to buy food, and more.
Note: There may be changes or updates to the free government programs above. I recommend contacting the program to learn more. Also, please be sure to stay safe with your sensitive information and only use official websites (look for .gov websites and official government organization websites to start with to avoid scams).
What do you think of these free government programs? Have you ever used any of the ways above to get free money from the government?
Credit card scams have been well publicized in recent years, but you may not be aware of the uptick in debit card scams. According to FICO®, the total number of compromised debit cards in 2023 was up 96% over the last year surveyed, and more than 315,000 cards were impacted.
Whether swiping your debit card in person or while shopping online, you’ll want to be vigilant. Here, learn the ins and outs of debit card fraud, plus how to protect yourself.
What Is Debit Card Fraud?
Debit card fraud occurs when an unauthorized third-party or individual uses your debit card to take out cash or make purchases without your permission. Scammers can use sensitive financial details — your card number, PIN, CVV code, and expiration date — to make purchases that drain your bank account.
If left undetected, debit card fraud could potentially wipe out your bank balance. You’ll need to go through a process to dispute the charges and/or withdrawals to try to get your money back.
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Common Debit Card Fraud Tactics
Debit card scams can take many forms. Here are some of the most common types of debit card fraud.
Skimming Devices
Fraudsters install skimming devices on ATMs and payment terminals. These devices can look as if they are simply part of the machine; they fit over the slot where your card usually goes. If you unwittingly insert your debit card, the skimmer can scan the microchip on your card. Your card’s details can then be downloaded, stored, and used without authorization. Skimming can happen at any payment terminal, but it tends to be most common at gas station pumps and ATMs.
Phishing Scams
A phishing scam occurs when scammers create fake sites, and/or send bogus emails or text messages in hopes of luring you to reveal your debit card details. Then, your financial credentials can be used by criminals.
These fraudsters often pretend to be an individual or company with a too-good-to-be-true offer or an urgent situation that spurs you to take action. For instance, they might offer a new laptop at a remarkably low price, or they could tell you your bank account has been compromised and you need to update your credentials immediately.
The goal is to get you to click on a fake site and input your debit card information. While less common, you might get a phone call with an offer that requires your card info on the spot.
Card Theft
Another common way fraudsters can use your debit card to make purchases or take out cash is to steal your physical card. Once they have their hands on your card, they might try to guess your PIN by taking a stab at what your PIN might be — for instance, your birth year. (This information may also be gleaned from social media accounts or the dark web once they have your name.)
Scammers might also figure out your PIN by “shoulder surfing” or subtly peering over your shoulder as you punch in your PIN at an ATM. Once they have that information, they could steal your card and use it to empty your checking account.
Recommended: When Were Debit Cards Invented?
Preventing Debit Card Fraud
Here are steps you can take to safeguard your personal and financial card data from would-be thieves:
Secure Your Card
You can secure your card by signing the back of your debit card, keeping your PIN private, and changing your PIN regularly.
You might also want to consider using a credit card for online purchases and when paying for gas at the pump. Credit cards typically have greater fraud protection than debit cards.
Monitor Accounts Regularly
By monitoring your accounts, you can spot any suspicious debit card activity more quickly. For instance, set text or email alerts for debit card transactions and aim to check recent activity through your bank’s mobile app.
Many people find checking their bank accounts once or even a few times a week is a wise move. It’s also a good idea to comb through your recent banking statements for anything that seems out-of-the-ordinary, such as:
• Purchases you didn’t make, including micro payments of a dollar or so
• Unauthorized big-ticket transactions
• Multiple purchases from the same store you didn’t authorize
Use Chip Cards and Digital Wallets
Chip cards use EMV technology, which involves a tiny embedded computer chip that makes it harder for fraudsters to skim and access your debit card’s details. They can be less susceptible to fraudulent activity than those with the standard magnetic strip.
Digital wallets have greater protections, too. They employ security features such as encryption and tokenization, which add a wall of protection against fraudsters trying to access your card data. Additionally, because digital wallets are stored on your phone, they’re usually safeguarded by biometric screening, multi-factor authentication, and passwords.
What To Do if Fraud Occurs
Should you fall victim to hackers, know that it can (and does) happen to anyone. With more sophisticated tactics and greater technology, fraudsters are getting better at finding ways to snag your debit card data. Here’s what to do should you find yourself a victim of debit card fraud.
Report It Immediately
If your debit card has been lost or stolen or you suspect fraud, the first step is to report it to your bank immediately. Reporting the fraud as soon as possible limits your financial responsibility and can halt the damage the scammer can do. Contact your bank ASAP if you notice unusual activity and request guidance. Depending on your particular situation, you may also have to take steps to report identity theft.
Dispute Fraudulent Charges
If the issue is a fraudulent charge on your debit card, try contacting the merchant to see if you can resolve the issue on their end.
At the same time, you’ll also want to dispute fraudulent charges by contacting the bank or credit union, as mentioned above. It’s important to do this ASAP (and no more than 60 days after the problem occurs). Once you dispute a charge, the financial institution can take up to 90 days to investigate and resolve your dispute.
You can also request a “chargeback” on debit card transactions. Essentially, a chargeback occurs when you dispute a transaction and reverse it. The money that got charged goes back into your account as the financial institution investigates the issue. When it’s resolved, you either keep the credit or, if the bank decides there wasn’t fraud, the funds are taken out of your account.
Get a New Debit Card
When you report fraudulent charges, the bank or credit union can freeze your account, which blocks anyone — including yourself — from using it. If they aren’t already sending you a new debit card, ask for one. Your old card is compromised, so you’ll want a new one.
Also, if you lose your debit card, that’s another reason to call your bank about freezing your account and getting a new one sent to you. Your missing card could be in the hands of a criminal.
Recommended: What Is An ATM Card?
Debit Card Fraud Protections
Under the Electronic Fund Transfer Act (EFTA), if you let your financial institution know within two business days after you notice suspicious activity, you are typically only liable for up to $50. If you inform them after that 48-hour period but within 60 days, you could be liable for up to $500. If you don’t notify them until more than 60 days has passed since the incident, you could face unlimited losses.
Tips for Safer Debit Card Use
Next, delve into best practices to keep your debit card and its details secure.
Avoid Unsecured Wifi
Hackers will go to great lengths to try to tap unsecured networks and steal private information, including personal details, passwords, and data about your checking and savings accounts, plus other financial intel.
To avoid making your banking data vulnerable to thieves, don’t use public or unsecured wifi. Instead, make sure you’re on a secure network. Secure networks have protective measures in place to ward off unauthorized access and theft.
Update PINs and Passwords
Make it a habit to update your debit card and app PIN and banking passwords regularly. Make sure you use unique, strong passwords. In other words, alphanumeric passwords that also contain special symbols. You’ll also want to steer clear of using weak passwords that can be easily guessed, like your date of birth.
Use Credit Cards for More Protection
Credit cards can offer greater protection than debit cards. When a hacker uses your credit card for fraudulent purchases, they’re not using your money but your credit. So you won’t risk having your bank account wiped out.
Plus, most credit cards provide zero liability protection for unauthorized charges. And, if you notice any suspicious activity, you can likely freeze your card to prevent any additional credit card scams from occurring.
The Takeaway
While debit card fraud is on the rise and scammers are more sophisticated in their tactics, you can take steps to prevent debit card fraud from happening. Monitoring your accounts regularly, keeping your credentials private, and being wary of skimmers are among those moves that can help you keep your bank account secure.
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FAQ
What are common debit card fraud red flags?
Red flags for credit card debt include multiple transactions from the same retailer, unusually large purchases, or purchases made in a place you haven’t visited. It’s always a good idea to check your transactions and monitor your banking activity regularly, at least once a week.
Are debit or credit cards safer?
Credit cards offer greater fraud protection and are generally safer to use than debit cards. Many major card issuers offer zero liability fraud protection. However, you can accrue interest on your purchases, while debit cards simply tap funds you have on deposit.
Can a bank reverse fraudulent debit charges?
Yes, a bank may be able to reverse fraudulent debit card charges. You can request a chargeback, for example, when a transaction goes awry. If your card was lost or stolen and there has been suspicious activity, let your financial institution know ASAP. If you alert them within two business days after discovering the fraudulent charges, you generally won’t be held accountable for more than $50. If it’s been more than two days but less than 60 days, you can be liable for $500. If you wait more than 60 days, you could endure unlimited losses.
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.
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 recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit 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, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, 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.
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