Inside: Are you confused about how gross pay and net pay are calculated? This guide will clear everything up. Learn about the different deductions that are taken from your paycheck, as well as the tax rates that apply to your gross pay.
This is one of the most confusing questions for many people.
So, if you are wondering what the difference between gross pay and net pay, you are in the right place.
In order to become financially stable, you need to have a tiny amount of financial literacy.
If you’re like most people, you probably think of your “gross pay” as the amount of money you make before taxes are taken out. But in reality, gross pay is your total compensation from your employer before any deductions are made.
So what is “net pay,” then? Net pay is the amount of money that actually goes into your bank account or paycheck after all of those deductions are made.
Now you want to which one is more important between gross pay and net pay.
The answer is: it depends! If you’re trying to save money or make a budget, then net pay is probably more important to you. But if you’re trying to figure out how much taxes you’ll owe at the
We will dive into all of the details, you will not ever be confused again.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is gross pay?
Gross pay is the total amount of money earned by an employee before any taxes or deductions are taken out. It’s important to know your gross pay as it determines your overall income and can impact your taxes and benefits.
This is the total amount paid by your employer.
Knowing your gross pay is crucial for financial planning and paying taxes.
How can I calculate my gross pay?
To calculate gross pay, you need to know your hourly wage or salary, any overtime pay, bonuses, and additional reimbursements for work-related expenses.
For hourly workers, multiply the hourly wage by the number of regular hours worked within a pay period and include the overtime pay rate for any extra hours.
For salaried workers, multiply the gross monthly income by 12 to find the annual gross salary.
To calculate a paycheck, start with the annual salary amount and divide it by the number of pay periods in the year.
Find out 5000 a month is how much a year.
What deductions are taken out of gross pay?
Gross pay refers to the total amount of money an employee earns before any deductions are taken out.
As such, there are no deductions.
Learn what is annual income.
How are taxes calculated on gross pay?
Gross pay is the amount an employee earns before taxes and deductions are taken out by their employer.
Understanding taxes on gross pay is essential, as it affects an employee’s take-home pay and tax liability.
Taxes that are deducted from gross pay include FICA payroll taxes, federal and state income tax withholding, along with any state-mandated programs like this Colorado Paid Sick Leave.
To calculate taxes on gross pay, an employer uses a formula that subtracts all taxes and deductions from the gross pay amount. Learn how much you should withhold on your taxes.
Common issues that may arise during tax calculation include incorrect tax withholding and not considering voluntary pre-tax deductions. Understand why do I owe taxes this year.
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For U.S. taxpayers, you will find helpful tips in this new edition to help you apply the new tax incentives to your situation.
Tax breaks are not only for the rich. It is for everybody! You just have to take time and learn it.
What is net pay?
Net pay refers to the amount of money an employee takes home after all deductions and taxes have been taken out of their gross pay.
This is the money left over that you can spend, save, and invest.
Thus, you will be able to budget by paycheck like a pro!
How to calculate net pay?
Calculating net pay is crucial for accurate and compliant payroll management.
Here is a step-by-step guide on how to calculate net pay:
Determine the gross pay based on hours worked or salary divided by the number of pay periods in the year.
Subtract mandatory deductions, including health insurance premiums, federal, state, and local income taxes, payroll taxes, and court-ordered wage attachments.
Subtract voluntary deductions, such as employee contributions to a 401(k) or other retirement plan as well as any flexible spending account.
The resulting amount is the employee’s net pay.
Learn about annual net income.
What deductions are taken out of net pay?
Net pay refers to the amount of money an individual receives after taxes and other necessary deductions have been subtracted from their gross pay.
It is a crucial factor in determining an individual’s income, as it represents the actual amount of money they take home.
There are various deductions that are commonly taken out of net pay, including mandatory and voluntary deductions.
Mandatory deductions are made in accordance with the law, while voluntary deductions are ones that employees have the freedom to opt out of.
The mandatory deductions include:
Federal, state, and local income taxes
Social security taxes
Medicare taxes
Local state or municipal taxes
Other common voluntary deductions from gross pay include:
Health insurance premiums (if signed up on a company plan)
Retirement contributions
Health savings account contributions
Flexible spending account contributions
Dependent Care FSA
Is gross before or after taxes?
Gross pay is BEFORE taxes.
Gross pay is the amount earned before taxes and other deductions are taken out. Taxes are then calculated based on the gross pay amount and deducted to arrive at the net pay. This means that gross pay is always before taxes.
Understanding the difference between gross pay and net pay is important to effectively manage finances.
Gross pay may seem like a large amount, but it is important to consider the impact of taxes and other deductions on the final amount received.
What is the difference between gross pay and net pay?
Gross pay and net pay are two important terms that employers and employees should understand.
Gross pay refers to an employee’s total earnings before any deductions are taken out, while net pay is the amount an employee takes home after deductions such as taxes, benefits, and garnishments have been subtracted.
Here are some key differences between gross pay and net pay:
Gross pay includes all earnings, such as wages, salary, reimbursements, commissions, and bonuses, while net pay is the actual amount of the paycheck after deductions.
Employers are responsible for deducting necessary expenses from an employee’s paycheck and making payments to the appropriate accounts before issuing the check or depositing the net pay into the employee’s bank account.
Gross income determines an individual’s federal income tax bracket and borrowing capacity, while net pay presents disposable income.
When budgeting for the year, starting with gross wages requires subtracting the total of taxes and other deductions to compute the actual amount left to spend from each paycheck.
Understanding the difference between gross pay and net pay is crucial for effective budgeting and financial planning.
Employers must ensure proper employee taxes are collected and paid to the government, while employees need to know their take-home pay to manage their expenses.
How do gross pay and net pay work?
Gross pay and net pay are two important terms in the payroll world that employees should understand to manage their finances effectively.
Gross pay is the total amount of pay while net pay is the amount of money you have to spend each month.
Understanding the difference between gross and net pay can help employees and employers avoid confusion and manage their finances better.
What is better gross pay or net pay?
One term is not “better” than the other as they each have different meanings.
When you increase your gross pay, your net pay will rise as well.
Here is how to use gross pay to your advantage:
Provides a clear understanding of the employee’s total compensation
Helps employees plan for future expenses
Can be used as a basis for negotiating salary increases
Figure out the amount of taxes you are required to pay.
Here is how to use net pay to your advantage:
Reflects the employee’s actual take-home pay
Helps employees budget for their expenses
Provides a clear understanding of the impact of deductions on their pay
Can be difficult to compare with other job offers that list gross pay
Overall, net pay is better for employees as it reflects their actual take-home pay and helps them budget for their expenses.
However, it’s important for employees to understand both gross pay and net pay to make informed decisions about their compensation.
Why do you receive more gross pay than net pay in your paycheck?
Employees receive more gross pay than net pay in their paychecks because gross pay is the total amount of money an employee earns before any deductions are taken out.
This includes an employee’s salary, wages, commissions, and bonuses.
On the other hand, net pay is the actual amount of money an employee takes home after taxes, benefits, and other mandatory deductions have been subtracted from their gross pay. These deductions can include federal and state taxes, Social Security contributions, health insurance premiums, and retirement plan contributions.
Therefore, employees receive more gross pay than net pay.
Learn is social security disability income taxable.
FAQs
Overtime wages are included in gross pay when an employee works more than their regular hours and earns additional compensation for the extra hours worked.
This is the case for nonexempt employees who are entitled to overtime pay under federal or state law.
Net income is the take-home pay or the money that you earn on payday, which is why it may be best to focus on that number when creating a budget.
This number helps you determine how much you have to spend, save, or invest.
By tracking your expenses and using budgeting techniques like budgeting with percentages or the 50/30/20 rule, you can manage your finances effectively and make the most out of your net income.
Remember, creating a budget is about being realistic and disciplined with your spending habits, so make sure to adjust your budget accordingly as your income or expenses change.
The tax rates for gross pay depend on the specific taxes being withheld, such as federal income tax, Social Security tax, and Medicare tax.
Federal income tax rates vary depending on the employee’s income level and filing status, with higher earners generally paying a higher percentage of their gross pay in taxes. Click here for the latest federal income tax brackets.
Social Security tax is a flat rate of 6.2% for the employee on the first $$160,200 of gross pay earned. Your employer must match the same contribution. (source)
Medicare tax is a flat rate of 1.45% on all gross pay with the employer matching the same percentage, with an additional 0.9% tax for high earners. (source)
Employees need to understand their tax liability based on their gross pay to accurately calculate their net pay and avoid any surprises come tax time.
Now, you Know the Difference between Gross and Net Pay
Understanding deductions and their impact on net pay is crucial for employees to accurately budget and plan their finances.
Since you know the difference between gross and net pay, you can make sure that you are getting the right amount of money in your paycheck.
Be sure to check your pay stubs carefully to make sure that all of the deductions are correct. If you have any questions, be sure to ask your human resources department.
Know someone else that needs this, too? Then, please share!!
If you’re considering refinancing some or all of your student loans, you may wonder what comes next on your financial to-do list.
On June 3, President Biden signed the debt ceiling bill into law, ending the three-year federal student payment pause. Payments are expected to resume in October.
Refinancing student loans can often result in a lower monthly student debt payment, either due to a lower interest rate, a longer loan term, or both. A lower monthly payment can be a big relief to borrowers who are still reeling financially from the effects of Covid-19 and higher inflation.
Lower payments can also free up some of your income for other key financial goals. That’s what we’ll look at here.
What Happens When You Refi Student Loans?
Understanding what happens after a refinance is key to planning your next steps.
As mentioned above, when you refinance, you may find a more favorable interest rate or more flexible loan terms that will help reduce your monthly payment. The SoFi Student Loan Refinancing Calculator can help determine how much refinancing could save you.
Keep in mind, when you refinance a federal student loan into a private loan, you lose the benefits and protections that come with a federal loan, like deferment and public service-based loan forgiveness (PSLF).
What Is Your Next Financial Goal?
As you consider refinancing, it’s a good idea to keep your other financial goals in mind. How can refinancing student debt — and perhaps lowering the percentage of income dedicated to repayment — help you achieve those goals? Take a look at the following scenarios that might apply to you.
1. Pay Down High Interest Debt
Once your student loan debt is under control, turn your attention to any high-interest debt you may be carrying on credit cards. There are two common ways people approach paying down debt. Which one you choose depends on your financial situation.
• The Debt Avalanche. With this system, you start by paying your highest interest rate card first, with payments above the monthly minimum. You do this while still keeping up with minimum payments on any other debt. When you eliminate your highest rate debt first, you can more quickly lower your overall debt picture.
• The Debt Snowball. In this scenario, you pay off your debt in order of the smallest to the largest balances, regardless of interest rate. This way you see some of your smallest debts paid off quickly and get a psychological boost from doing so. As you pay off each debt, you assign the amount of the payment you were making on that balance to the next debt. Your debt repayment builds momentum, known as “the snowball effect.”
Recommended: Which Debt to Pay Off First: Student Loan or Credit Card?
2. Start an Emergency Fund
Having money saved for unexpected expenses is a vital part of financial wellness.
But saving for emergencies is a challenge for many Americans. According to Bankrate’s 2023 annual emergency fund report, less than half (43%) of U.S. adults could pay for an unexpected emergency expense from their savings.
Starting or boosting your emergency fund with money saved on student loan payments is a great way to help keep your budget intact and stay out of debt.
How much should you save in your emergency fund? At least three to six months of living expenses (or take-home pay) is the rule of thumb. That way, if you lose your job, have an accident, or get sick, you’re likely to have enough to see you through until your situation improves.
3. Increase Retirement Contributions
Are you putting as much as you can away for retirement? Starting early can pay off big down the line, thanks to the magic of compound interest — and the fact that earnings grow tax-free in most retirement accounts such as IRAs and 401(k)s.
If your employer offers a matching contribution benefit, upping your game may be even more important. This is free money. Whenever possible, contribute the amount necessary to qualify for the full match so you take the best advantage of this key benefit.
4. Save for the Next Stage of Life
Life goes on well after student loans. Now with less student debt burden, you’re probably looking at what’s next. That may mean buying a car, saving for a down payment on a home, starting a family, or expanding a business.
Careful budgeting means you can put the difference between your old student loan payment and your new one toward other important life goals.
Once you establish the goal you’re saving for, consider opening a high-yield savings account dedicated to that purpose. You’ll earn interest while your nest egg accumulates but still have liquidity so your money is available when you’re ready to pursue your goal.
5. Invest
Starting an investment account outside of retirement savings can be an important financial goal in and of itself. The reason? Long-term stock market returns consistently outperform many other types of investments. Over the past decade through March 2022, the average annual return for the Standard & Poor’s 500 Stock Index was 14.5%.
Returns vary, of course, depending on the years you are invested and the economic environment. But over the long haul, investing in stocks early — even small amounts — can pay off in the future.
Mutual funds and exchange traded funds (ETFs) are two easy ways to start investing. A mutual fund is a collective investment which pools funds from many investors to invest in stocks, bonds or other securities. ETFs work much the same way but unlike mutual funds, ETFs can be bought and sold like a stock as the price goes up or down during the day.
How to Pay Off Student Loans Ahead of Schedule
As we’ve seen, a refinance can help lower your monthly payments and perhaps bring some much-needed wiggle room to the rest of your finances.
That may motivate you to keep the momentum going and look at ways you can repay your remaining student debt faster. Here are two tried and true strategies.
Pay More Than the Monthly Amount
Your monthly payment amount isn’t set in stone. You can always pay more than the minimum amount, and in most cases you probably should. Payments over the minimum monthly amount owed are applied directly to the principal. So even a little bit extra can lower the amount of your loan and help you save on interest over the life of the loan.
Recommended: Why Making Minimum Student Loan Payments Isn’t Enough
Dedicate a Windfall to Student Loans
Another strategy for paying student debt faster: Whenever you get a windfall, use some or all of it to make a lump sum payment toward your student loan principal. Think tax refunds, cash gifts, work bonuses, or income from a side gig or inheritance.
What to Avoid After Refinancing Student Loans
After refinancing student loans, be careful not to fall into a common trap: It’s called “lifestyle creep,” and it happens when you spend all of your discretionary income instead of directing some of it to financial goals.
To avoid creep, mindfully adjust your budget to account for any increase in income — such as lower student loan payments. That way the money will be put to good use instead of being frittered away.
Recommended: Living Below Your Means: Tips and Benefits
The Takeaway
Refinancing your student loans may help you lower your monthly payments, freeing up funds to put toward other financial goals. You might choose to pay down high-interest credit card debt, boost your emergency fund or retirement account, or even pay off your student loans faster. With the end of the federal student loan payment pause in sight, now may be a good time to consider refinancing all or part of your student debt.
Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.
With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.
Photo credit: iStock/RossHelen
SoFi Student Loan Refinance If you are looking to refinance federal student loans, please be aware that the White House has announced up to $20,000 of student loan forgiveness for Pell Grant recipients and $10,000 for qualifying borrowers whose student loans are federally held. Additionally, the federal student loan payment pause and interest holiday has been extended beyond December 31, 2022. Please carefully consider these changes before refinancing federally held loans with SoFi, since the amount or portion of your federal student debt that you refinance will no longer qualify for the federal loan payment suspension, interest waiver, or any other current or future benefits applicable to federal loans. If you qualify for federal student loan forgiveness and still wish to refinance, leave unrefinanced the amount you expect to be forgiven to receive your federal benefit.
CLICK HERE for more information.
Notice: SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income-Driven Repayment plans, including Income-Contingent Repayment or PAYE. SoFi always recommends that you consult a qualified financial advisor to discuss what is best for your unique situation.
SoFi Loan Products SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.
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.
New Mexico’s rich, fascinating history makes it popular with both visitors and new residents. Whether you work for the federal government or one of the state’s many small businesses, banking services are an essential part of life. That’s why we’ve pulled together a list of the best banks in New Mexico to help you find the right bank to fit your needs.
10 Best Banks in New Mexico
From online and mobile banking to traditional banks with branches across the country, there’s a bit of everything in New Mexico. It’s important to take a look at the closest bank branch to your house, but you should also pay attention to which banks charge monthly maintenance fees to make sure you’re getting the best deal. The below list can help you kick off your search for the best bank.
1. U.S. Bank
With its vast array of branches and ATMs, U.S. Bank is a major player in the banking sector of the state.
Of particular interest to residents of New Mexico is the Bank Smartly® Checking account. This account provides the opportunity to gain up to $300, provided certain criteria are met. Specifically, within a span of 90 days from creating your new Bank Smartly® Checking account online, you are required to:
Successfully process two or more direct deposits that cumulatively total $6,000 or more
Sign up for either online banking or the U.S. Bank Mobile App
This promotional offer, valid until July 11, 2023, comes with particular terms and conditions. U.S. Bank is an FDIC member.
In addition to these enticing offers, U.S. Bank provides a broad spectrum of financial services, which include checking and savings accounts, loans, investments, and more. These services can be easily accessed through their user-friendly online and mobile banking platforms.
Fees:
$6.95 monthly service fee (waived with direct deposits or balance minimums)
No-fee overdraft protection transfers from a linked deposit account
Balance requirements:
$25 opening deposit
$1,500 minimum daily balance or $1,000 in direct deposits to waive service fee
ATMs:
Fee-free at U.S. Bank, MoneyPass, and Cardtronics locations nationwide
$2.50 charge per transaction at out-of-network ATMs
Interest on balance:
Up to 4.50% APY on money market accounts
Up to 4.75% APY on CDs
Additional perks:
Extensive mobile banking features
Money management tools available
2. New Mexico Bank & Trust
New Mexico Bank & Trust is a traditional bank with locations across New Mexico. This free checking account has no minimum balance, but if you frequently access cash, you’ll want to consider upgrading to a New Mexico Bank & Trust higher-tier account.
With direct deposit, both the Platinum and Signature Series checking accounts refund up to $20 in non-New Mexico Bank & Trust ATM fees each month. Currently, you can earn a $300 bonus on a new free checking account as long as you receive at least two monthly $300 direct deposits.
Fees:
No monthly service fees
$35 overdraft fee
Balance requirements:
$25 minimum deposit to open
No minimum daily balance requirements
ATMs:
Fee-free at New Mexico Bank & Trust ATMs
No out-of-network ATM fees
Interest on balance:
Up to 1.25% APY on savings account
Up to 4.75% APY on CDs
0.10% APY on money market savings account
Additional perks:
Up to $600 bonus with new checking account
New Mexico Bank & Trust cash-back rewards credit card comes with no annual fee
3. Chime
If online banking is how you get banking services, Chime is worth considering. The basic checking account is fee-free and includes all the features you need. Although Chime doesn’t feature the in-person service you get with brick-and-mortar banks, you can withdraw cash for free at more than 60,000 ATMs nationwide.
Fees:
No monthly maintenance fees
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 60,000 ATMs nationwide
$2.50 for each out-of-network ATM transaction
Interest on balance:
2.00% APY on savings accounts
Additional perks:
Secured credit card helps you build credit with no credit check required
SpotMe covers up to $200 in overdrafts
4. Bank of Albuquerque
If you live in Albuquerque, the Bank of Albuquerque has bank branches throughout the area. You’ll find a fee-free checking account with nationwide access to cash at more than 32,000 locations in the MoneyPass ATM network.
One standout feature of this traditional bank is its youth account. Designed for those under the age of 18, this account features a Visa debit card, online and mobile banking tools (for ages 13+ only), and a savings account that pays 0.25% APY.
Fees:
No monthly maintenance fees
$34.50 overdraft fee
Balance requirements:
$50 minimum deposit to open
No minimum balance requirements
ATMs:
Fee-free at Bank of Albuquerque ATMs
Fee-free at 32,000+ MoneyPass locations nationwide
$2 fee for each out-of-network ATM transaction
Interest on balance:
Up to 0.20% APY on savings account
Up to 4.85% APY on CDs
Up to 1.50% APY on money market accounts
Additional perks:
Same-day credit for deposits at any Bank of Albuquerque ATM
Wealth management services available
5. GO2bank
Another online bank available to New Mexico residents is GO2bank. For those who regularly deal with cash, GO2bank is a great option. You can not only withdraw money at any Allpoint ATM, but you can deposit cash at more than 90,000 retailers nationwide. GO2bank will waive monthly fees on your checking account as long as you set up a qualifying direct deposit.
Fees:
$5 monthly fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum balance required
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 fee for each out-of-network ATM withdrawal
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Deposit cash at 90,000+ partner retailers nationwide
Up to 7% cash back on gift card purchases
6. WaFd
If you’re looking for the expanded services of a national bank with the personal touch of a local bank, Washington Federal Bank is worth considering. With bank branches across New Mexico, WaFd Bank makes an effort to connect with each community it serves. But if you’re in the market for a new CD, WaFd is currently offering up to 5.00% APY on 3-month CDs and up to 4.45% APY on 7-month CDs.
Fees:
No monthly service charges
$30 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at WaFd Bank ATMs
Fee-free at 40,000+ MoneyPass ATMs nationwide
Interest on balance:
0.10% APY on savings accounts
Up to 5.00% APY on CDs
Up to 2.00% APY on money market accounts
Additional perks:
Three debit card style options available
Budgeting tools available in mobile banking app
7. Wells Fargo
With bank branches in 33 states and the District of Columbia, Wells Fargo is a national bank with plenty to offer. Currently, you can open a free checking account as long as you maintain a $500 daily balance, receive at least $500 in direct deposits each month, are 17-24 years old, or have a Wells Fargo campus ATM card linked to your checking account.
New checking customers can earn $300 by receiving at least $1,000 in qualifying deposits in the first 90 days.
Fees:
$10 monthly fee (waived with requirements)
$35 overdraft fee
Balance requirements:
$25 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at Wells Fargo ATMs nationwide
$2.50 out-of-network ATM fee
Interest on balance:
Up to 2.51% APY on savings accounts
Up to 4.51% APY on CDs
Additional perks:
$300 bonus on new checking accounts
Robust mobile banking services
8. Century Bank
If you prefer banks in New Mexico with a long history in the state, consider Century Bank. The bank has served New Mexico since 1887. Century Bank has a wealth of financial products, including personal loans, business accounts, and retirement savings options. Currently, Century Bank is offering higher-than average rates on CDs, including 7-month CDs that earn interest at a rate of 5.00% APY.
Fees:
No monthly fees
Balance requirements:
$25 opening deposit
No minimum balance required
ATMs:
Fee-free at Century Bank ATMs
Fee-free at MoneyPass ATMs nationwide
$2 fee for each out-of-network ATM withdrawal
Interest on balance:
Up to 0.03% APY on savings accounts
Up to 5.00% APY on CDs
Up to 3.50% APY on money market accounts
Additional perks:
Multiple account options for small businesses
Great rates on personal and auto loans
9. Bank of America
One of the best traditional banks is Bank of America, which has branches throughout New Mexico. What sets Bank of America apart from other banks is its top-rated mobile banking options. You’ll get features like budgeting tools, debit card lock/unlock, and custom alerts. Frequent travelers appreciate Bank of America’s nationwide network of branches and ATMs.
Fees:
$12 monthly service fee (waived with requirements)
$10 overdraft fee
Balance requirements:
$100 minimum opening deposit
No minimum balance required
ATMs:
Fee-free at 15,000+ Bank of America ATMs nationwide
$5 out-of-network ATM fee
Interest on balance:
Up to 0.04% APY on savings accounts
Up to 4.75% APY on CDs
Additional perks:
Generous credit card bonuses and rewards
Wealth management services available
10. Nusenda Credit Union
Credit unions offer benefits like low interest rates on loans and high interest rates on savings accounts. With Nusenda Credit Union, you can not only get service at a bank branch bearing the credit union’s name, but at credit unions across the country that are part of the Co-Op Network. This network also includes more than 30,000 ATMs nationwide.
Fees:
$5 monthly service fee (waived with requirements)
$29 overdraft fee
ATMs:
Fee-free at Nusenda Credit Union ATMs
Fee-free at 30,000+ Co-Op ATMs nationwide
Interest on balance:
Up to 4.50% APY on CDs
Additional perks:
More flexible membership requirements than other credit unions
Competitive rates on loans
How We Picked: Methodology
It can be tough to choose the best bank in New Mexico since needs vary from one person to the next. That’s why we made every attempt to choose a variety of banks, from online banking providers to local banks and credit unions.
We also looked at the banking products each bank offers to make sure you’re getting the best variety. Here are a few criteria we considered when putting together this list of banks.
Interest Rates
A bank keeps your money safe, but it’s also a way to build on what you already have. If you’re going to save money, why not earn a little interest on that balance?
In building the above list, we looked at which savings account paid the most, finding that often the best bank for that was an online-only bank. We also looked at which bank offers the best rates on CD accounts and found many local banks had the best deal on those.
We also paid attention to the interest rates that banks charge on loans and credit cards. Smaller financial institutions like credit unions often compete with large banks by offering reduced rates on these products as an account holder perk.
Large Branch Network
You might never need in-person help with your account, but when you do, it’s important to be able to find a branch. You don’t need a large bank to get a national network of branches, though. Many online banks and credit unions are part of a partner agreement that offers branches across the country, both in major cities and more rural areas.
Large ATM Network
While you’re looking into coverage areas, withdrawing money should also be a priority. Make sure your bank has an ATM network that will cover you even when you’re away from home. Online or mobile banking can take care of services like online bill pay and mobile check deposit, but mobile services can’t handle banking transactions like cash deposits and withdrawals.
New Mexico residents have no shortage of banking options, from big banks to small community banks. Whether your priority is to earn interest on your balance or enjoy low fees on your checking account, you can easily find a bank that fits your needs.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
The ripple effect of a financial mindset can be seen in every aspect of your life.
Think about it: If you are not mindful of how you spend and save money, then you will be in a constant struggle each and every month.
If you are simply someone who is struggling to make ends meet, there are many things we can do to save money. If you are trying desperately to reach financial freedom sooner, then you need these best money hacks to make it happen sooner.
Around here at Money Bliss, we spend a lot of time on our money mindset and setting goals.
Everyone is in a different season with their finances.
But, one thing is true… Most of us never learned proper money management.
Do you find yourself in a constant cycle of financial struggle? Do you feel like you are constantly trying to live up to unrealistic standards?
It is easy for people to feel that they are constantly broke, and in some cases this is true. But, it is also important to remember that there are ways in which you can make more money and start saving for your future.
Since changing money habits does not always come easy and often requires some serious changes in our mindset, we are here to support you to find the top money hacks.
Read on as we share 50+ ways you can start saving more money as well as making more money while also saving your sanity!
What are Money Hacks?
Money hacks are the ways in which people stretch their money.
These money hacks can come from a variety of sources, such as personal experience, family members or friends, and other individuals on social media.
Money hacks can come in many forms such as:
Simple money saving hacks
Ways to make money on the side
Strategies to make every dollar count
Thrifty ideas to be more frugal
Ideas to be more conscious of our waste
All in all, money hacks will help you to spend less money. Thus, saving more money.
As you will learn at Money Bliss, saving money opens up doors of opportunities
Best Money Hacks
Money hacks are ways to build long-term wealth.
Even though most of the hacks for money include quick saving wins, over the long term, you will actually start a snowball effect of more money in your bank account.
Sometimes, it can be difficult to find the motivation to save money, but these 7 best real money hacks will help you reset your financial mindset and start saving!
The best money hacks are the overarching big picture concepts that you must master for long-term success.
1. Think Big
Open up your mind.
One way to reset your financial mindset is by opening yourself up to new ways of thinking about spending and saving.
Too often, we are focused on what is directly in front of us instead of thinking about the big picture.
A great way to think big with your finances is to decide how you want to live life with intention.
2. Habit of Saving Money
Get back in the habit of saving.
If you have been beyond your means or barely scraping by, the best way to get back on track is by saving at least 20% of your income.
This may seem a little ludicrous. However, by prioritizing saving first, you will be pleasantly surprised how well you live off the rest.
In this post, there will be so many simple and easy ways to start saving today.
3. Make a Plan for Your Money
Create a spending plan (aka that dreaded word budget).
Creating an outline for what you want and need will help you to make smarter decisions about your spending.
This concept has been made too difficult over the years.
The bottom line is you want to spend less than you make. So, make a plan for that to happen today.
4. Make Money on the Side
This one is huge!
Personally, making extra money has been a priority for the last 5 years. We spent many years trying to cut our expenses and hating our inability to actually spend less as a growing family. So, we changed our focus to finding ways to make more money instead.
Start a side hustle. If you are not making enough to live comfortably, start a side hustle! Use your unique skill set to make extra cash.
Pick up a second job or ask for more hours.
There are plenty of ways to make money fast.
5. Invest in Stock Market
This means a way to make money or increase your net worth. AKA make your money work for you.
Too many times, the concept of investing is big and scary. The thought of starting is way too overwhelming. So you put it off until next week or next month. Then, a couple of years go by and you have not invested your money.
That is the biggest financial mistake you can make.
Start small by investing in an index fund. Each month consistently add more money.
If you want to learn to trade stocks, then you must enroll in the best investing course I have found.
Read my in-depth investing course review.
6. Pay Off Debt
Ugh… debt is the cash flow killer.
You are unable to make forward progress if you are straddled by debt.
Figure out how to pay off debt ASAP.
When calculating how long it will take to pay off high-interest debt, you should consider paying the highest interest rate first. Here is the best debt payoff app available.
7. Watch Your Spending
Be mindful of your spending.
This is a great practice that many people need to start doing again, regardless of how much money or how little money they have.
Every few months, you need to evaluate your spending to see if it matches up with your values.
As you can imagine there are many money hacks that can help you save, but the list above is the money hacks that will make the biggest difference the quickest. Below we have many more money hacks for you to explore.
Hacks for Saving Money
Money app hacks are small, quick, and easy ways to improve your finances.
They can range from things like automating your budget or creating a money jar that pays for itself, to more complex solutions like changing your tax withholding or moving money around to get a higher return.
Honestly, there are so many life hacks for saving money.
8. Automatic Savings
This is a practice of automatically transferring money from your checking account into your savings account on a regular basis.
It is best to set a transfer amount and stick to it.
Since it is easier to save your money before you spend it, you must save as much money as possible in order for this strategy to be effective.
9. Financial goals
A financial goal is a long-term, quantifiable expectation for how much money you want to have, or what you plan on doing with your money. Your goals can be as simple as saving for the down payment on a house or as involved as saving for retirement.
Our financial goals allow us to set specific, numerical targets that help us achieve our desired lifestyle in a more concrete way.
You must set smart financial goals.
10. What brings you joy?
At the end of the day, it is important to remember that life is all about finding what brings you joy.
The question is open-ended, but your money must line up with what brings you joy.
Spend a few minutes and stew on the question.
11. Build an emergency savings fund
Building an emergency savings fund is a great idea if you are in the habit of saving money and want to make sure that you have some money saved up when times get rough.
If you are struggling to save, there are a few ways you can increase your savings.
For example, you might be able to set up automatic transfers from your checking account into an investment account. You should also make sure that you have a way to save money outside of your checking account.
Saving cash in a jar or saving up coins are ideas for some people.
12. Invest spare change
If you go shopping and buy something, most stores will give you change. If you use a debit or credit card, you can do the same thing with help of a popular app!
Simple money hack: investing your spare change.
In order to invest your spare change in an account, you can open one for as little as $5. Acorns then automatically invest the money from your checking account and into a savings acorn account.
As the round-up feature continues to add upon each purchase, it is a good idea to invest in this app so that you can save more dollars!
13. Challenge Yourself to Save
If you are looking to save money, it is best to set up a budget that includes challenging yourself.
A great way to do this is with the no spend challenge.
A no-buy is when you decide to simply not make any purchases for a certain amount of time.
A no-spend is when someone decides to not spend any money in a certain period of time.
When you are struggling with spending too much money and want to reset your wallet, then give up spending money. Period.
14. Join a buy nothing group
The buy nothing groups are a growing movement that started in order to help people cut their ecological footprint, save money, and break free of consumerism.
This is a great way to find things you need as well as declutter your house.
15. Negotiate everything
The key to successful negotiation is preparation.
Research the company’s past sales, price changes, and discounts offered in order to get a better understanding of what you’re negotiating for.
Don’t be afraid to negotiate.
What is the worst thing that can happen when someone says no!?!
16. Refinance Your Mortgage
It is never too late to refinance your mortgage.
In fact, it might be a good idea if you’re in the market for a new home or refinancing your loan on an existing property.
You must weigh the costs of refinancing to how much you will save over the time period of the loan.
Ask around for mortgage broker recommendations and get at least two quotes.
17. Downsize your Home
Downsize your home is the term for reducing a residence in size. This can be done by either moving to an apartment or buying a smaller house. There are many benefits of downsizing, including living a more affordable lifestyle and having less upkeep.
Downsizers use their homes as investments and save money on rent or mortgage payments.
18. Cut the cord
With the internet becoming accessible to everyone, people have started cutting their cable and watching shows online. People can save up to $500 a year by cutting cable from their bills.
Cut the cable & stop watching TV!
19. Learn about Finances
Ask for help.
If you are struggling, there is no shame in asking for assistance from your friends or family members.
The goal is to get ahead with money and not keep digging further into a hole.
Check out any of our courses to help you.
20. Save for What You Want
Decide what you want most and work towards it with the money you have now, instead of waiting for a windfall or a large inheritance.
This may mean setting aside $200 a month.
For example, as a reminder of your long-term goal of buying a beach property, you may buy something you would hang in the new place. Every time you see it, you will be reminded of what you are saving towards.
Budget Hacks
Financial hacks are not unusual.
Since it is so easy to overspend, you must know a few budgeting hacks ahead of time.
21. Need vs Want
A want is a desire for something, while a need is something that fulfills the requirement of your body like food or shelter.
When you think about buying something, ask yourself if it is a want or a need.
By uncovering needs vs wants, you are quickly able to find ways to spend less and save more.
22. Avoid Temptation
To avoid temptation, it is important to maintain a healthy amount of physical and emotional distance from the things that tempt you.
Sometimes, spending triggers are easy to avoid but other times they’re not.
However, people should always be aware of their temptations and try to stay away from them because it will lead to unnecessary debt or stress in the long run.
23. Practice the 30-day rule
Many people wonder what’s the 30 day rule with money…
The 30-day rule is the principle that states that you should practice a new habit or stop an old habit for at least thirty days before expecting success.
When it comes to your money, it means to wait thirty days before making big purchases or changes.
24. Keep a Budget Binder
A budget binder is an important tool that helps people keep track of their finances.
The binder can help people plan out their finances by providing a place to record expenses and income.
Keeping a budget binder is an effective way to track your spending and keep yourself accountable.
By keeping it, you can easily plan for future expenses in advance as well as see what money could be saved or spent on different items over time.
25. Get a spend tracker and use it regularly
Track your spending for 30 days. It can be a good idea to track your spending for at least a month to get an idea of what you’re spending and where.
A spending tracker is a tool that helps people keep track of how much they are spending on a certain item. It is important to use this tool regularly in order to be able to see patterns in your spending.
Then, review your spending. Share it with a trusted friend or family member to come up with some goals to reduce expenses in order to save money.
26. Create a budget
Create a budget, and follow it.
When you schedule your spending, make sure to leave room for savings. This is the easiest way to ensure that you can stick to your budget.
Find more budgeting resources on our site.
27. Pay Bills on Time
This should be a simple statement that we all know. However, life can throw curveballs.
Try to pay your bills on time and in full every month, and make sure all of your bills are paid each month.
This will show lenders that you are responsible and that you are taking care of your credit. Plus you don’t rack up those pesky late fees and high interest rates.
28. Avoid Missed Payments
Don’t miss any payments, and pay off your balances each month to avoid paying high interest rates or fees on late or missed payments.
Read again… do not miss paying your bills.
29. Reconcile Your Checking Account
Balance your checkbook monthly. Okay, no one really uses a checkbook anymore, but you can still do this with pen and paper.
Even better, use Quicken as a simple way to balance your checking account. Read my Quicken review.
This is a great way to check for being charged too much or find a subscription you don’t use anymore.
30. Avoid Summer Budget Busters
Avoid spending money for the summer by just being conscious of your spending and reviewing what is different than the norm.
It is too easy to get into the trap of spending money because the weather is warm.
31. Review your Credit Card Statements
If you’re like most people, you probably review your credit card statements once every six months.
What’s the best way to go about reviewing them?
It depends on how often you use your credit card, how much debt you have, and what your credit score is. You should review your statements at least once a year if you’re carrying a balance on your credit cards.
If you use your credit card, then you should review your statements at least monthly.
32. Use the Cents Plan Formula
While the 50/30/20 budgeting rule is popular, our method of budgeting your money will be more helpful.
Learn how to divide your income into various categories.
Check out the Cents Plan Formula.
33. Use Cash
Use cash instead of credit cards to spend, which will make it easier to limit yourself to how much you can spend.
The envelope system helps you save money by only spending from one designated cash stash each month and withdrawing a set amount for different types of expenses (like groceries).
34. Spending Freeze
Implement a spending freeze, which helps you get used to not buying things for an allotted time so that when the freeze is over, it’s easier to buy what you want.
You will be surprised how much random online shopping you do.
Begin your spending freeze now.
35. Use a Budgeting App
Use your bank’s budgeting tools, like Quicken, which can help you track how much money is coming in and out of your account.
This is the simplest way to manage your money wisely.
Using a money app or a personal finance website can help you to stay organized and get more creative about your budgeting.
Check out this list of the best budgeting apps available.
Hacks to Make Money
Hacks to make money are a list of ways to generate income for yourself. Many ways to make money include blogging, affiliate marketing, or day trading. These money making hacks are great, but they can take more time and energy invested.
36. Use cash back apps
Cash back reward apps like Ibotta are a way to get extra money for your purchases.
They take some time getting used to and you only have access to partner stores that offer cash-back offers. It only takes a few seconds to make some extra cash.
Check out the best cash back apps available.
37. Ask for a Raise
A raise is an increase in pay for a job, labor, or service.
If you are concerned about asking for a raise, then you are missing out on lost money.
Your boss may be receptive to it, then try negotiating more money. Not only will this be good for your career, but also the relationship between you two can improve as well.
38. Get a side hustle
A side hustle is an additional job or career, usually, one that requires only a small amount of time and effort.
For example, someone who wants to work on the weekends might start a side hustle as a bartender.
Side hustles are a form of entrepreneurship that allows you to earn money and do little tasks. They are not difficult or time-consuming, but they can still help you make extra cash on the side.
Pick one of the best gig economy jobs.
39. Rent out a part of your home
A part of your home is often a room, which can be rented out on Airbnb.
Airbnb is the largest and most successful company in the world that lets people rent their extra space or properties. They are a well-known company that provides an easy way for people to make money from their extra space.
Use Neighbor to lend out your space in your home.
40. Declutter: sell your junk for cash
Decluttering is the act of getting rid of excess or unnecessary items.
In order to declutter, you must be willing to give up something that has been a part of your life for a long time. It is important to remember that decluttering does not have to be a quick or easy process.
Then, sell your stuff on Facebook Marketplace, Nextdoor, eBay, etc.
Learn more at Flea Market Flippers.
41. Earn Money While Watching TV
Although it is not a fast way to get rich, this can be used as a side hustle.
It’s better to use the money earned from watching TV or something else that takes up your time for other things like bills and groceries.
Survey platforms are online sites that allow people to earn money while watching TV.
The survey platform will send surveys through the mail or email, and then they can choose whether they want to take the survey for a set reward amount or if they would like cash back on their purchase.
One of these options is MyPoints, which allows users to earn points by completing tasks such as taking surveys and shopping online at specific retailers.
Others include:
42. Maximize Your Income
Find ways to increase the amount of money you bring in, whether that’s through a side hustle, increasing hours at work, or asking for a raise.
In today’s society, there are plenty of ways to make more money.
Only you put a limit on what you are capable of earning.
43. Build Your Credit
Building your credit can be a long process, but it’s worth the effort. If you’re trying to establish or improve your credit score, here are some tips that might help:
Try to keep your credit utilization rate below 30% at all times.
Do not open too many new lines of credit in a short period of time.
Pay your bills on time.
This will help you avoid damaging your credit score.
Hacks for Free Money
Hacks for free money are a form of fraud wherein the perpetrator solicits payment via PayPal, credit card, or other methods in exchange for access to what they promise will be a legitimate business opportunity.
Hacking free money is a way to make more cash, fund your financial goals, or help you pay off debt. There are lots of ways that people hack their finances and use cash back apps for some extra income.
Other options include signing up for bank bonuses or credit card bonuses.
Honestly, real free money hacks are more likely to be scams. So, beware when searching online.
Money Hacks in the Kitchen
You can save the most money by looking at what you eat.
Typically, people waste over 25% of their grocery budget and throw out food. Would you willingly throw out $250 a month? Probably not.
So, learn how to stretch your money for food.
44. Start meal planning
Meal planning is a money-saving strategy that can help in the long run. It’s also important to eat healthily and reduce food waste when meal planning.
But planning ahead will help save on the grocery budget, and it’s not too late to start now.
Start meal planning by deciding what you want to eat for each day. Then, make a list.
45. Say no to prepackaged foods
Packing your lunch for work or school can be time-consuming, especially if you have a family.
Some people prefer to buy prepackaged foods because they save time, but this is not always the best option.
A better choice is to make your own food at home and pack it for lunch, which you can then eat in peace without worrying about what other people might be saying about the food you packed.
46. Eat at home
Eating at home is a way to save money. It may be uncomfortable for those who do not enjoy cooking as it requires extra effort and time.
Instead of getting food at restaurants, consider cooking your favorite meals at home.
You can save money and time by eating the same meal over and over again.
Learn about the frugal home must haves.
47. Grow your own herbs and food
The most common methods of gardening include container gardening, hydroponics, and both indoor and outdoor gardening.
Many people are growing their own herbs and food for the satisfaction of being able to eat something that was grown with their hands.
48. Take your lunch
If you are interested in saving money, consider taking your lunch. This will save you up to $1,000 a year on work lunches and make it easier to meet the recommended daily intake of fruits and vegetables as well.
“Take your lunch” is an invitation to eat at home. There are many benefits of eating out less often, such as saving money and gaining more control over food choices.
Travel Hacks to Save Money
The following are travel hacks that can help you save money on your next trip.
Some of these hacks include traveling during weekdays, using public transportation, staying at hostels and Airbnb instead of hotels, and using a travel credit card.
49. Use foreign websites for lower prices abroad
Foreign websites are websites that have been created by people from other countries, and they sell products in the language of their country. These websites often offer lower prices on products than what is offered in the United States.
If you’re traveling abroad and need to find a place to stay, there are plenty of websites that can help. A few websites have deals on places where travelers often stay while they travel internationally.
50. Stay for free or get paid to house sit abroad
A house sitter is someone who looks after someone’s property for a certain amount of time in exchange for the promise of payment.
House sitting is typically offered by homeowners to travelers and others who are looking to stay in a particular location for an extended period of time.
The main types of house sitting include:
– full-time house sitters, who are responsible for all aspects of the house and who are typically paid a monthly salary,
– part-time house sitters, who may be responsible for taking care of one or more specific tasks such as gardening or handling the mail
51. Hide your search
To avoid being taken advantage of by airlines, it is best to open a new incognito or private window between searches.
This will make sure that you are not tricked into buying tickets that may be significantly more expensive than they need to be.
Airlines use cookies in your browser to make you believe the prices are going up and up.
Money App Hacks
Money app hacks are ways that people have figured out to make their money work for them in terms of saving and spending. These apps offer different features, such as budgeting, tracking your spending, and saving money.
If you want a simple way to save money, then any of these money apps are designed to find excessive spending.
52. Billshark
This is a legitimate way to save money on monthly bills. Billshark offers you the opportunity to save up to 25% each month (when compared with regular bill payments).
All of this can be done for you by BillShark team, and there are no fees involved!
Try Billshark for free!
53. Trim
Review your spending habits to find what you can cut out, like subscriptions.
Find other ways to save by looking for ways to reduce costly bank fees or getting a discount on your cell phone plan. By using Trim, you are saving money and improving your financial health.
Sign up with Trim now.
54. Truebill
Truebill can help you to track your spending, save money and get a clear picture of your financial life.
This helps you identify services that you are no longer using but continue to pay for. It will help save money by automatically negotiating prices with your service providers and receiving a refund of the money going to waste, which is free money.
Get started with Truebill.
Which Life Money Hacks Can You Start?
This is a lot to take in, but don’t worry.
Take the time to read through each suggestion and consider how you can implement it into your life.
The more hacks you try out, the closer you’ll get to a healthy financial mindset.
These are the life hacks to save money I have found to work for me and my family in order to reset our financial mindsets and grow our net worth.
Everyone will find their niche and what will work best for them.
Personally, you need to figure out how do I make more money. That will make the biggest impact the fastest.
What have you done with your money lately?
Know someone else that needs this, too? Then, please share!!
With its discount fares, a fleet of new Airbus jets and a robust frequent flyer program, Frontier Miles can be a great value for Frontier Airlines travelers. As a Frontier Miles member, you can earn miles and elite status. Frontier elite status has many perks to make your travels more enjoyable and less expensive, including complimentary carry-on luggage, advance seat assignments and the ability to pool your miles. You can then redeem your miles for award travel.
Surprisingly, despite being one of the top low-cost carrier loyalty programs, the program often flies under the radar. You can quickly earn enough miles for a free trip even after just a few flights. And recently, the airline launched a limited-time promotion where eligible Frontier Miles members with a travel rewards credit card can secure Elite 20K status for as little as $199.
Here’s an overview of how the program works.
How to earn Frontier Miles
The Frontier Miles program is free to join. You can earn Frontier Miles by flying, through its cobranded credit card and transacting with Frontier partners.
Earn Frontier Miles by flying
Unlike many loyalty programs nowadays, you earn Frontier Miles on the length of your flight (rather than the price of your ticket). You earn 1 mile per mile flown regardless of your fare type. For example, if you fly from Orlando International Airport (MCO) to New York’s LaGuardia Airport (LGA), you’d earn 950 miles.
Mid and upper-tier elite members earn the following bonuses on their flights:
Elite 20K: No bonus
Elite 50K: 1.25 miles per dollar bonus
Elite 100K: 1.5 miles per dollar bonus
Earn miles with the Frontier Airlines credit card
Frontier Airlines partners with Barclays to offer the Frontier Airlines World Mastercard®.
New card members earn 50,000 bonus miles after spending $500 on purchases and paying the annual fee in full within the first three months of cardmembership.
With this card, you’ll earn 5 miles for every dollar spent directly with Frontier (including airfare, fees and onboard purchases), 3 miles per dollar spent at restaurants and 1 mile per dollar spent everywhere else. The miles you earn on this card count toward elite status.
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The card also offers valuable benefits like Zone 2 boarding on all Frontier flights and family pooling. You also earn a $100 flight voucher after spending $2,500 or more on purchases with your card during your cardmembership year (terms apply). Cardholders also get waived award redemption fees. We’ll discuss redemption fees later, but Frontier charges between $15 and $75 for close-in reservations.
Unless you place a high value on Frontier Airlines miles and elite status, we generally don’t recommend this card. Most travelers are better off with a transferable points credit card like the American Express® Green Card.
The information for the Frontier card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Earn points with Frontier’s partners
Frontier has relationships with several major rental car companies, so you can earn bonus miles and access negotiated rates when booking through their transportation partner page. While earning rates depend on the rental car company, you can generally earn between 50 and 100 miles per rental day or 1,000 miles per rental.
Frontier Airlines also partners with Marriott Bonvoy, Radisson Rewards and Wyndham Rewards. You can transfer Marriott points at a 3:1 ratio (with 5,000 bonus miles for every 60,000 points you transfer), while Radisson Rewards transfer 10:1. You can’t transfer Wyndham points to Frontier.
These are not favorable ratios; you’re probably better off redeeming those points for hotel stays. However, it’s an option worth knowing about if you ever need to top off your Frontier Miles account.
Depending on the Marriott brand, you’ll generally earn either 1 or 2 Frontier Miles for every qualifying dollar spent. You must update your Marriott account preferences to earn Frontier miles instead of Marriott points. We don’t recommend doing this since you’ll get a maximum of 2.2% back in Frontier Miles instead of at least 4.2% back in Marriott Bonvoy points for your Marriott stays, based on our valuations.
Like Marriott, you can also opt to earn Frontier Miles instead of Wyndham points on your eligible stays:
Wyndham Blue (standard): 1 mile per dollar spent on all stays
Wyndham Gold: 1 mile per dollar spent
Wyndham Platinum: 2 miles per dollar spent
Wyndham Diamond: 2 miles per dollar spent
Again, we generally recommend earning hotel points instead of Frontier Miles.
You can also buy or gift Frontier Miles and earn on eligible Vinesse Wine and Teleflora purchases. Finally, you can book a cruise through Frontier Cruises and earn miles at a preset rate. Often, you can earn more miles by booking through other cruise programs.
One- to five-night cruise: 1,500 miles
Six to nine-night cruise: 3,000 miles
Nine to 12-night cruise: 5,000 miles
Cruises 13 nights and longer: 10,000 miles
Related: What it’s like to fly Frontier Airlines from Miami to Newark on the Airbus A320neo
How to redeem Frontier Miles
You can redeem Frontier Miles for two things: flights and magazines. As you’d expect, the best use of Frontier Miles is redeeming them for award flights. The airline publishes an award chart with starting award rates, but there are a few added fees that you should be aware of before booking. Here’s a look at the specifics.
Frontier offers three different redemption tiers: Value, Standard and Last Seat.
Value: This is the lowest redemption rate for all Frontier redemptions and can be compared to a “Saver” ticket on a traditional carrier. These are generally offered during off-peak dates and less desirable flights, but we’ve also found Value tickets when there’s low demand.
Standard: Standard awards are generally priced out at twice the cost of a Value ticket. These awards are available on more (but not all) dates.
Last Seat: As the name suggests, Last Seat awards are available for booking until the last seat on the plane is booked. Unfortunately, these awards are only bookable to Frontier elites and cost 2,500 more miles each way than Standard awards. This can be a good option if you’re booking at the last minute and paid fares are high.
Here’s a look at Frontier’s current award chart, with starting award rates:
Travel within the U.S. and Puerto Rico
Value
Standard
Last Seat
10,000
20,000
22,500
Award tickets to or from Mexico, Dominican Republic, Jamaica, El Salvador, Guatemala, the Bahamas, Costa Rica and Antigua
Value
Standard
Last Seat
15,000
25,000
27,500
Fees associated with Frontier award tickets
Unfortunately, Frontier adds a booking fee to most award tickets. You’ll pay this fee when you book an award flight within 180 days of departure; the closer you get to departure, the higher the fee is.
Here’s a look at the fee structure — note that these fees are charged in addition to other taxes and fees:
At least 180 days before departure: $0
21-179 days before departure: $15
7-20 days before departure: $50
Six days or less before departure: $75
These fees are waived for Frontier elite status members and those with a Frontier Airlines credit card. If you frequently book award tickets close to departure, you may find applying for a Frontier credit card worthwhile, as this can save you considerable money. Additionally, companions booked on the same reservation as a Frontier cardmember or elite member receive waived redemption fees.
Be sure to factor these fees into the cost of your ticket when booking travel on Frontier Airlines. In some cases, booking a paid ticket instead of an award ticket may make more sense if you’re subject to a booking fee. Frontier often offers low-cost tickets at the last minute, making the cent-per-point redemption value extremely low.
Related: 7 takeaways from my first Frontier Airlines flight in over 4 years
Discount Den membership
Frontier Airlines offers a subscription service called Discount Den. While not the same as elite status, the program gives members access to discounted fares for $59.99 annually. New members have to pay a $40 enrollment fee.
Children under 15 fly for free when accompanied by the Discount Den member on select flights, offering excellent savings on certain routes.
We’ve found that Discount Den can offer pretty excellent deals, too. On a given flight from San Francisco International Airport (SFO) to Las Vegas’ Harry Reid International Airport (LAS), a Discount Den member would save $20-$30 per ticket over the standard price.
These discounts also apply to international flights. For example, you can score a $10 discount per person when flying from Hartsfield-Jackson Atlanta International Airport (ATL) to Cancun International Airport (CUN).
We recommend that frequent Frontier flyers consider a Discount Den membership if they’ll get more than $59.99 annually in savings from the service. That said, a family of four may recoup the cost of a Discount Den membership from just one family vacation a year.
Related: Should you join Frontier’s Discount Den or the new Spirit Saver$ Club?
Go Wild! Pass
Frontier Airlines also offers an all-you-can-fly pass, which it calls Go Wild!
TPG tested the pass and found unexpectedly high fees and limited availability. Additionally, while it’s advertised as an all-you-can-fly pass, it doesn’t provide unlimited free travel after you buy it.
You generally can get the most value from the pass by booking last-minute flights. Here’s an example from Houston’s George Bush Intercontinental Airport (IAH) to Las Vegas.
Go Wild! Pass customers can get confirmed bookings the day before flight departure for domestic travel and starting 10 days before flight departure for international travel.
The annual pass costs $1,999, but you might be able to find limited-time promotions here.
Related: I bought an all-you-can-fly pass — here’s what it was like to use it
Frontier elite status
Frontier elite status has three tiers: Elite 20K, 50K and 100K. You can achieve these elite status tiers by earning 20,000, 50,000 and 100,000 Frontier miles from flying on Frontier or spending on the cobranded credit card. Frontier Airlines also has a promotion where eligible cardholders can secure Elite 20K status for as little as $199.
Let’s look at each of these status tiers and their respective benefits.
Benefits
Elite 20k
Elite 50k
Elite 100k
Qualification
20,000 qualifying miles or 25 flight segments annually
50,000 qualifying miles or 50 flight segments annually
100,000 qualifying miles or 100 flight segments annually
Redeemable mileage earning on Frontier flights
1 mile per mile flown
1.25 miles per mile flown
1.5 miles per mile flown
Carry-on
✓
✓
✓
Seat assignment
✓
✓
✓
Family pooling
✓
✓
✓
Priority boarding
✓
✓
✓
Waived redemption fees
✓
✓
✓
Waived travel fees
✓
✓
✓
Last Seat availability
✓
✓
✓
Stretch seating
At check-in
✓
✓
Family seating
✓
✓
Discount Den membership
50% off
✓
Checked bag
✓
Family status (the Works bundle)
✓
Family status (the Works bundle) is the key benefit here. When you reach Elite 100K, you and your family get free checked bags, carry-on bags, priority boarding and seat selection. Plus, you can change or refund your flight for free, giving you the utmost flexibility when flying with Frontier. This can save your family hundreds of dollars per flight, making the Works one of the most impressive Frontier elite status benefits.
Related: How to get airline elite status
Bottom line
Frontier may not be the most exciting airline, but its loyalty program is worthwhile for those who fly on the airline often. Its award chart is extremely easy to understand and can provide excellent value if you avoid pesky booking fees. Furthermore, Frontier Airlines’ elite status is great for families and those who want to avoid fees when flying on a low-cost carrier.
Now, you have the background to decide if Frontier Miles is the right program for you.
In-depth reviews of the best travel rewards credit cards
Capital One Venture X Rewards Credit Card
Pros:
Elevated earn rate on everyday spending
High welcome bonus for a reasonable spending requirement
Excellent travel perks and recurring benefits
Cons:
Travel bonuses are limited to Capital One bookings
High annual fee
Capital One pulls your credit from all three credit bureaus
The Capital One Venture X Rewards Credit Card is a relatively new travel credit card but has quickly distinguished itself as one of the best. See Rates & Fees.
The card offers a substantial welcome bonus and elevated earn rate that makes racking up points fast and easy. Even if you don’t take advantage of the 5-10x travel bonus, you’ll earn 2x miles on all spending. This earning structure is ideal for people who don’t want to deal with tracking category bonuses. If you want a single credit card in your wallet that earns more than one mile per dollar spent, this is the card for you.
The card’s $395 annual fee is high but still lower than most premium credit cards. However, the recurring benefits offset it — think things like a $300 annual travel statement credit for Capital One Travel bookings and a Global Entry/TSA PreCheck® credit every four years. Best of all, the card offers a yearly 10,000-mile bonus worth $100 towards travel.
The card’s lounge benefits are also worth noting. Members get unlimited visits to Capital One Lounges. While the Capital One lounge network is still developing, members also get Priority Pass Select membership, valid at over 1,300 lounges worldwide.
The only downside about Capital One is that the bank pulls your credit from all three bureaus rather than just one, making for a sure hard hit on your credit score. However, if you keep this card long-term, it’s worth it.
Annual fee: $395
Welcome bonus: Earn 75,000 bonus miles once you spend $4,000 on purchases within the first 3 months from account opening
Rewards: 10x miles on hotels and rental cars booked through Capital One Travel; 5x miles on flights booked with Capital One Travel; 2x miles on all other purchases
Travel benefits: $300 annual travel statement credit on Capital One Travel bookings; up to $100 Global Entry or TSA PreCheck® credit every four years; 10,000 anniversary bonus miles (worth $100 towards travel); unlimited Capital One lounge access (plus two complimentary guests); Priority Pass™ membership; Hertz President’s Circle® status*, and; no foreign transaction fees
Travel insurance: Travel accident insurance, auto rental coverage (See Rates & Fees.)
Read our full review of the Capital One Venture X Rewards Card.
The Platinum Card® from American Express
Pros:
Loaded with travel and dining credits that help offset the annual fee
Automatic elite status with Hilton and Marriott
Substantial welcome bonus that will cover at least one round-trip international business class fare
Transfer your points to 20 airline and hotel partners
Cons:
High annual fee
Lack of meaningful category bonuses
Requires excellent credit
The Platinum Card® from American Express has one of the highest annual fees at $695, but it also comes packed with travel credits and benefits galore. Taking advantage of them would get you well over $1,500 in value every year. Between the elite status perks, travel credits, digital entertainment credits, and lounge membership, it offers the most comprehensive travel perks of any credit card.
The Amex Platinum also offers best-in-class travel insurance. All you have to do is charge your travel bookings to the Platinum card, and you’ll be protected in case of cancellations and delays.
With a 80,000-point welcome bonus, you can book an off-peak round-trip business class ticket to Europe with All Nippon Airways miles. Or you can opt for economy class and cover up to four round-trip tickets to Europe using Flying Blue rewards.
The Amex Platinum is an excellent travel rewards card if you want a large welcome bonus and tons of travel perks. But the annual fee is hefty, and the card lacks any meaningful category bonuses beyond direct travel bookings. If you don’t think you’ll be able to get your money’s worth through the various credits every year, you might want to consider a different card.
Annual fee: $695
Welcome bonus: Earn 80,000 Membership Rewards® points after spending $6,000 within the first six months
Rewards: 5x points on flights and prepaid hotels; 1x point on all other purchases
Travel benefits: $300 annual Equinox credit (issued monthly); $200 annual credit on prepaid hotels booked through Amex Travel; $200 in annual Uber Cash (distributed monthly); $200 annual airline fee credit; $155 Walmart+ credit; $20 monthly digital entertainment credit; access to the Amex Global Lounge Collection; $189 CLEAR credit; Global Entry/TSA PreCheck® credit every five years; $100 Saks credit issued semi-annually; Hilton and Marriott Gold status; access to Amex Fine Hotels & Resorts; premium car rental status; no foreign transaction fees
Travel insurance: Primary rental car coverage; trip delay insurance (up to $500 per trip); trip cancellation & interruption insurance (up to $10,000 per trip)
Read more: Are Amex cards worth it?
Chase Sapphire Preferred®
Pros:
Generous earn rate on common spending categories
Flexible loyalty program with good transfer partner selection and ability to redeem for direct bookings through Chase Ultimate Rewards® at a rate of 1.25 cents per point
Generous travel benefits and protections for a mid-tier card
Cons:
Limitations on the highest spending categories
Bookings made with the $50 hotel credit don’t earn 5x points
The Chase Sapphire Preferred® Card has had the distinction of being one of the best travel credit cards for over a decade. The card is popular because it offers a generous welcome bonus, which is fairly simple to redeem. You can transfer points to one of 14 airlines or hotels. Or you can redeem points through Ultimate Rewards® Travel at just 1.25 cents each. This flexibility makes Ultimate Rewards® points (and the Sapphire Preferred® Card) incredibly valuable.
If one loyalty program devalues, you can transfer your points to a different partner. Just keep in mind that point transfers are not reversible, so don’t do it unless you’re ready to redeem the points.
The Chase Sapphire Preferred® Card is a great starter travel card, and its $95 annual fee is typical for a mid-tier card. However, if you don’t use the $50 annual hotel credit or earn at least 9,500 points per year to justify the annual fee, then it’s not worth it.
Annual fee: $95
Welcome bonus:60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®.
Rewards: 5x points on travel booked with Chase Ultimate Rewards®; 3x points on dining (including eligible delivery services), select streaming services, and online grocery store purchases; 2x on other travel purchases; 1x on all other spending
Travel benefits: Up to $50 in annual credits towards Ultimate Rewards® hotel bookings; no foreign transaction fees
Travel insurance: Primary rental car collision waiver; up to $10,000 in trip cancellation/interruption coverage; purchase protection for 120 days; extended warranty protection
Read our full review of the Chase Sapphire Preferred® Card.
Citi Premier® Card
Pros:
High welcome bonus that transfers to 16 airline and hotel programs
$100 hotel credit on Citi ThankYou® Travel bookings of $500 or more
Reasonable annual fee
Cons:
No travel protections
$100 hotel credit excludes taxes and fees
At first sight, the Citi Premier® Card shouldn’t be on this list. The card has no travel protections, which is not ideal when booking thousands of dollars in travel. However, if you buy travel insurance anyway, then the Citi Premier® isn’t so bad. It’s a great card for maximizing spending on everyday purchases.
The card earns 3x points on select travel and common spending categories like dining, gas, and groceries. Cardmembers also get a $100 annual hotel credit valid on Citi Travel bookings of $500 or more. Considering the annual fee, this perk is pretty generous.
The Citi ThankYou® program is also one of the best, allowing you to transfer the card’s substantial bonus to 16 airline and hotel programs.
If you want a travel rewards card that really rewards you in your everyday life, this is a great card. Just think twice about charging expensive travel bookings to it, since they won’t be protected.
Annual fee:
Welcome bonus:Earn 60,000 bonus ThankYou(R) Points after you spend $4,000 in purchases within the first 3 months of account opening. Plus, for a limited time, earn a total of 10 ThankYou(R) Points per $1 spent on hotel, car rentals, and attractions (excluding air travel) booked on the Citi Travel(SM) portal through June 30, 2024.
Rewards: 3x points at restaurants, supermarkets, gas stations, air travel, and hotels; 1x on all other purchases
Benefits: Annual $100 hotel savings on a booking of $500 or more (excluding taxes and fees); no foreign transaction fees
Travel insurance: None
Read our full review of the Citi Premier® Card.
Card info has been independently collected by MoneyUnder30 to help consumers better compare cards. The financial institution did not provide or approve card details.
AAdvantage® Aviator® Red World Elite Mastercard®
Pros:
Easy welcome bonus
Free checked bags and priority boarding when flying American Airlines
Ability to earn a Companion Certificate every year
Cons:
$99 annual fee
Airline miles are more limited in use than transferable rewards
The best airline credit card is a tough one because it really comes down to your airline loyalty and whether you live near a hub city. But there’s a good reason we’ve chosen the AAdvantage® Aviator® Red World Elite Mastercard® for this category. The card offers one of the easiest spending requirements to complete and includes several ongoing perks that provide value beyond the $99 annual fee.
The Aviator Red card’s 50,000-mile welcome bonus is easy to earn. You only need to use the card once (for any purchase), and you’ll earn 50,000 bonus miles.
The card also offers a free checked bag on American Airlines flights, discounts on in-flight purchases and Wi-Fi credits, and a $99 Companion Certificate when you spend $20,000 in a year. Best of all: every dollar spent on this card counts towards elite status with American Airlines.
Annual fee: $99
Welcome bonus: 50,000 bonus miles after the first purchase and paying the $99 annual fee
Rewards: 2x miles on all American Airlines purchases; 1x mile on everything else
Travel benefits: $25 in statement credits towards in-flight Wi-Fi purchases; 25% discount on inflight food and beverage purchases; free first checked bag; preferred boarding; $99 Companion Certificate every year you spend $20,000 on the card; no foreign transaction fees
Annual free weekend night and resort credits help offset the annual fee
Generous category bonuses, with an additional spending incentive
Cons:
$450 annual fee
Priority Pass membership from American Express cards does not include access to airport restaurants
Hilton points have limited use
The Hilton Honors American Express Aspire Card is arguably the best hotel credit card. If you’re looking to earn Hilton points and make your next stay more rewarding, look no further.
Cardmembers get automatic top-tier Diamond status, which normally requires 42 nights, 21 stays, or 84,000 base points. Diamond members get free complimentary breakfast (or a dining credit at U.S. properties), club lounge access, space-available room upgrades, and 100% bonus points on paid stays.
Cardmembers also receive an annual free weekend night award, plus the ability to earn a second free night after spending $60,000 in a calendar year.
A $250 airline fee credit makes the $450 annual fee more palatable, along with the Priority Pass membership.
The only downside? American Express cards don’t get restaurant access with their Priority Pass membership, and some airports have restaurants that are part of the Priority Pass network. Members receive a credit of $28-$35 per person at these restaurants, which is handy when airline lounges are full or closed.
The Hilton Aspire Card offers a ton of value beyond the welcome bonus. Even if you just stay at one Hilton hotel a year, you can get your money’s worth. The card’s category bonuses make it easy to earn Hilton points. The only negative side to this is that you’re earning Hilton points rather than a transferable currency with more flexible use.
Annual fee: $450
Welcome bonus: 150,000 Hilton Honors bonus points after spending $4,000 within your first three months of card membership
Rewards: 14x points on hotels and resorts; 7x points on travel (flights booked directly with airlines or Amex Travel, cars booked with select companies); 7x points at U.S. restaurants; 3x points on all other purchases
Travel benefits: Annual free weekend night reward; $250 annual Hilton resort credit; annual $250 airline fee credit; $100 property credit at select hotels booked for two nights minimum; top-tier Hilton Diamond elite status; Priority Pass Select membership; no foreign transaction fees
Travel insurance: Secondary rental car collision coverage; up to $3,000 baggage insurance plan
Read more: The best hotel credit cards
Bilt Rewards Mastercard®
Pros:
Earn fee-free points on rent
Transfer points to 14 airline and hotel partners, most of which overlap with Chase Ultimate Rewards®
No annual fee
Cons:
Must make five transactions per billing period to earn points
Limited category bonuses
No welcome bonus
The Bilt Rewards Mastercard® is a relative newcomer to the travel credit card scene but has already shaken things up. The card has no welcome bonus, but it has one very lucrative feature: cardmembers can earn points on rent payments without paying fees. Services like Plastiq charge a 2.8% fee when you use a credit card for rent payments. Bilt lets you earn points without a fee if you make at least five transactions per billing period.
Bilt makes other purchases rewarding too. Cardmembers earn 3x points on dining, 2x on travel, and 1x everywhere else. In addition, cardmembers earn double points on the first of every month (except on rent payments). But what can you do with the rewards?
Bilt has 14 airline and hotel transfer partners, including Hyatt – which only partners with one other program (Chase Ultimate Rewards®). Bilt Rewards has 10 transfer partners in common with Chase, making this an excellent option if you want a no-annual-fee rewards card.
Annual fee: $0
Welcome bonus: None
Rewards: 3x points on dining; 2x on travel; 1x on rent payments without the transaction fee
Benefits: $5 Lyft credit when you take three rides per month; 3-month DashPass membership; travel perks on Rent Day (i.e., two-for-one Virgin Voyages sailings); no foreign transaction fees
Travel insurance: Trip cancellation and interruption coverage (up to $5,000); trip delay reimbursement (up to $1,800 per trip); auto rental collision coverage
Read our full review of the Bilt Rewards Mastercard®.
Chase Sapphire Reserve®
Pros:
The current welcome bonus is valid for up to $900 in direct travel bookings through Chase Ultimate Rewards® or can be transferred to 14 airline and hotel partners
The $300 annual travel credit offsets most of the annual fee
Excellent travel protections and benefits
Cons:
High annual fee
$75 fee per authorized user
The Chase Sapphire Reserve® Card is a great choice if you want a premium credit card that earns Ultimate Rewards®. The card currently has an elevated welcome bonus of 60,000 bonus points after spending $4,000 within the first three months of account opening. It also offers plenty of category bonuses to help you keep earning points beyond the initial bonus.
The $300 annual travel credit partially offsets the $550 fee. Cardmembers also get Priority Pass membership, up to $100 towards TSA PreCheck®, Global Entry or NEXUS application fees. The card also has plenty of travel protections, so you can charge your travel expenses with peace of mind.
Chase Ultimate Rewards® is a great program, whether you want to maximize its transfer partners or use it for direct travel bookings. Sapphire Reserve® cardholders can redeem their points for 1.5 cents each towards Ultimate Rewards® travel bookings. This flexibility is great for folks looking for simple redemption options.
Annual fee: $550 and $75 per authorized user
Welcome bonus:60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Ultimate Rewards®.
Rewards: 10x points on Chase Dining and hotel and car rental bookings through Chase Ultimate Rewards®; 5x points on Chase Ultimate Rewards® flight bookings; 3x points on travel worldwide; 3x points on other dining purchases (including eligible delivery services; 1x points on all other purchases
Travel benefits: $300 annual travel credit; Priority Pass Select membership; up to $100 Global Entry, TSA Precheck or NEXUS fee credit every four years; Luxury Hotel & Resort Collection perks
Travel Insurance: Trip cancellation and interruption insurance (up to $20,000 per trip); trip delay reimbursement (up to $500 per ticket); primary rental car coverage (up to $75,000); lost luggage reimbursement (up to $3,000 per passenger); emergency evacuation and transportation coverage (up to $100,000)
Read our full review of the Chase Sapphire Reserve®.
Capital One Venture Rewards Credit Card
Pros:
High welcome bonus and simple rewards structure for maximizing mileage earnings
Excellent transfer partners
Generous travel perks for a low-annual-fee card
Cons:
Capital One pulls your credit from all three credit bureaus
Limited lounge network
The Capital One Venture Rewards Credit Card has it all: an excellent welcome bonus, a top-notch rewards program, and generous travel perks for a low annual fee. Cardmembers get up to $100 Global Entry or TSA PreCheck® credit and two complimentary annual visits to Capital One Lounges. These perks are highly unusual for a mid-tier card, making Capital One Venture Reward’s $95 annual fee an excellent value. See Rates & Fees.
The welcome bonus is the same as the Venture X Rewards Card. So if you don’t want to shell out the $395 annual fee, the Venture Rewards card is a cheaper alternative. The 2x earn rate on all purchases is especially significant if you want to elevate the rewards you earn on everyday spending without tracking category bonuses across multiple cards. This can be your one-and-done rewards card.
Annual fee: $95
Welcome bonus: Earn 75,000 miles once you spend $4,000 on purchases within 3 months from account opening
Rewards: 5x miles on hotels and rental cars booked through Capital One Travel; 2x miles on all other purchases
Travel benefits: Two free Capital One Lounge visits per year; Hertz Five Star status*; up to $100 Global Entry/TSA PreCheck® credit; no foreign transaction fees
Travel insurance: Travel & Emergency Assistance Services and Auto Rental Insurance (See Rates & Fees.)
Read our full review of the Capital One Venture Rewards Card.
American Express® Gold Card
Pros:
Category bonuses are great for maximizing everyday spending
Amex has 17 airline and hotel partners, with periodic transfer bonuses
Statement credits can offset the annual fee
Cons:
Car rental coverage is secondary — upgrade to primary coverage costs $12.25-$24.95 per rental through Premium Car Rental Protection
$250 annual fee is high
Statement credits are limited to select merchants
The Amex Gold Card is an excellent travel card for everyday use. It offers generous category bonuses to help you maximize everyday purchases. Plus, the card provides monthly statement credits at select restaurants and Uber Cash that can make dining out (and transportation) easier. The Uber credits are valid on both UberEats and Uber rides, making them great for travelers and homebodies alike.
The 4x bonus on dining applies to restaurants worldwide, so you can continue maximizing this bonus even while out of the country. The card also has several travel protections, so you have peace of mind when booking your trips.
The downside? The $250 annual fee is steep; not everyone will find value in the statement credits. Amex’s once-per-lifetime rule can also make the welcome bonus less attainable. My advice? Wait for a higher offer. Not too long ago, the card was offering 90,000 bonus points. Since you’re limited to one bonus, you might as well hold out for the highest one possible.
Annual fee: $250
Welcome bonus: 60,000 bonus points after spending $4,000 within the first six months of card membership.
Rewards: 4x points at restaurants worldwide; 4x points at U.S. supermarkets (up to $25,000 per year); 3x on flights; 1x on all other purchases
Travel benefits: $10 monthly credit valid at Cheesecake Factory, Gold Belly, GrubHub, Milk Bar, Wine.com, and select Shake Shack locations; $10 monthly Uber cash; no foreign transaction fees
Travel Insurance: Baggage insurance plan (up to $1,250); secondary car rental coverage
Read more: Amex Gold vs. Chase Sapphire Preferred® Card: Which travel rewards card is right for you?
How do travel credit cards work?
Travel credit cards offer rewards that you can redeem for nearly-free flights and hotel nights. There are generally three types of travel credit cards: ones that earn transferable points, that earn hotel points, or that earn airline miles.
A diverse points portfolio is part of a good travel hacking strategy, so you should aim for at least one credit card that earns transferrable rewards. This way, you’re not stuck with one currency and have flexibility in redeeming points. If one loyalty program devalues, you can transfer your points to another one. If one program limits award space, you can transfer points to one with the seats or rooms you need.
Travel credit cards go beyond points. Many offer recurring travel perks like free hotel nights, airline credits, lounge membership, elite status perks, and more. If you play your cards right, travel credit cards can improve your travel experience substantially and help you save money.
The only downside is that most travel cards carry annual fees. Some of these fees go as high as $695. You’ll want to evaluate the card’s features and recurring perks before choosing one. The last thing you want is to shell out thousands of dollars in credit card annual fees and not get your money’s worth.
What’s the difference between points and miles?
Points and miles are two different types of currencies that can be used for travel. Points are generally issued by hotel loyalty programs or banks, while airlines issue miles. Of course, there are exceptions. For example, JetBlue, Southwest and Air Canada all call their rewards currencies “points” rather than miles.
Most banks have transferrable rewards they call points — these rewards can be used towards travel or cash back at a fixed cost. Their best use is transferring them to participating airline or hotel loyalty programs. Most transfers are 1:1 and nearly instant.
Airline miles are ideal for flights, while hotel points are best for free nights. Some hotel chains let you convert your points to airline miles, though the transfer ratio isn’t ideal. For example, Marriott points transfer to most airlines 3:1, with a 5,000-point bonus for every 60,000 points transferred.
For the best points strategy, you should have credit cards that earn points and miles. However, consider getting a transferrable rewards card like the Capital One Venture if you want to narrow it down to one card. You’ll earn 2x miles on every dollar spent and have access to 15+ airline and hotel transfer partners.
And if you don’t want to figure out where to transfer your points, you can redeem them towards travel purchases at one cent each.
How to choose a travel card
With so many great options, choosing a travel credit card can seem overwhelming. Everyone has different goals and spending habits, so there is no “best credit card” that meets every need. But if you’re in the market for a travel card, there are a few factors to consider that will help you make the best choice:
1. Know the (credit card application) rules
Most banks require good credit for travel cards, but did you know they also have various rules that impact approvals? Before you apply for a credit card, you should familiarize yourself with these rules to avoid unnecessary rejection. Here are some credit card application rules from different banks:
American Express
Once-per-lifetime rule
Five card limit
No more than two cards within 90 days
American Express has three credit card application rules you should be aware of. The first is the once-per-lifetime rule, which applies to most credit cards. If you’ve received a welcome bonus for an Amex card, you generally will not receive it again. There are, of course, exceptions, especially on targeted offers sent via mail and email. Be sure to read the terms and conditions of any such offers you receive.
The five-card limit restricts you to no more than five Amex charge cards open at a time. This rule does not apply to business cards. You also won’t be approved for more than two Amex cards in 90 days.
Capital One
Welcome bonuses are restricted for existing cardholders
Many Capital One cards have language on the marketing page prohibiting the welcome bonus for anyone who has had the card before. The Capital One Venture X, Venture, and VentureOne have this restrictive language.
The Spark Cards are vaguer, stating, “The bonus may not be available for existing or previous Spark cardholders.”
Keep this in mind if you’re applying for a Capital One credit card you’ve had before.
Chase
5/24 rule
24 and 48-month rule
No more than two cards within 30 days
Chase’s 5/24 rule is perhaps the most well-known credit card application rule. If you’ve applied for five or more credit cards from any bank in the last 24 months, you won’t be approved for a Chase card.
The 24-month rule applies to the Chase Freedom Flex℠ and Chase Freedom Unlimited®. If you’ve had the bonus in the last 24 months, you won’t qualify for another one.
Similarly, if you’ve had a Chase Sapphire Reserve® in the previous 48 months, you’re not eligible for another one.
Lastly, Chase won’t approve you for more than two cards within 30 days. Keep these rules in mind and time your applications accordingly.
Citi
24 and 48-month rule
No more than one card every eight days
No more than two cards every 65 days
Citi won’t approve you for a Citi Premier® Card or Citi Rewards+® Card if you’ve had it in the last 24 months. Meanwhile, the CitiBusiness® / AAdvantage® Platinum Select® World Elite Mastercard is off-limits if you earned the welcome bonus or closed the card within the previous 48 months.
Lastly, Citi will only approve you for one card every eight days or more than two every 65 days.
2. Get a card that suits your goals
When choosing a travel credit card, you should consider your spending habits and redemption goals.
Are you primarily a budget traveler looking to get the family to Disney World next summer? Or perhaps you want to experience the thrill of flying international first class with your significant other.
Your travel goals matter because they determine the rewards you should be earning and card perks that will suit your needs.
3. Decide on co-brand vs. transferrable rewards
As we’ve established, there are three types of cards: co-branded airline cards, co-branded hotel cards, and transferrable rewards. Think about which type of card will meet your travel goals. Generally, you’re better off with a transferrable rewards card because of the flexibility you have in using the points.
However, a hotel credit card might be handy if you’re planning a trip with hotel stays. You’ll get elite status and maybe even annual free nights. Meanwhile, you might consider getting an airline credit card for elite-type perks like free checked bags and priority boarding.
4. Go for a big welcome bonus
When it comes to welcome bonuses, you should aim for at least 50,000 points or higher. That’s pretty standard nowadays and enough to cover at least two round-trip domestic flights.
When you apply for a credit card, you incur a 2-5 point credit score hit, so make it count by getting a substantial bonus in exchange.
Read more: Best credit card sign-up bonuses
5. Evaluate your spending habits
Think about which categories you spend the most on and find a card that offers bonus points on that spending.
Similarly, if you’re not a big spender, you might want to steer clear of credit cards with large spending requirements. There’s no sense in applying for a card if you can’t meet the spend to secure the welcome bonus. Or even worse, if you have to go into debt to meet the requirement.
6. Pick a card with purchase and travel protections
Most people ignore this, but it’s crucial. Purchase protection can cover expensive items in case of damage or loss. The same goes for travel protection — if your trip is canceled for unforeseeable reasons, your credit card’s travel insurance can save you a lot of money.
So take travel and purchase protection into account when choosing a credit card. You’ll be glad if you ever have to use it.
7. Check the fees
Most travel credit cards have annual fees, ranging from $95 to $695. When choosing a card, be sure to take credit card annual fees into account. If you can’t afford the premium version of a card, downgrade to the mid-tier version.
Another type of fee that can add up is foreign transaction fees. Most travel credit cards waive these fees, but no-annual-fee cards like the Chase Freedom Unlimited® still carry them. You’ll pay an extra 3% just to use your card abroad. If you plan on traveling internationally, get a card with no foreign transaction fees.
Read more: Best credit cards with no foreign transaction fees
The bottom line: Should you get a travel credit card?
Travel credit cards are great if you want to earn or redeem points for cheaper travel. They can also save you money with perks like airline fee credits, free hotel nights, elite status, and waived foreign transaction fees. A travel credit card can be an excellent tool in your travel hacking arsenal.
However, it can also be costly if you don’t take advantage of their various perks and add more cards to your wallet without a strategy. Think through the steps we’ve outlined above and make your decision wisely.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
*Upon enrollment, accessible through the Capital One website or mobile app, eligible cardholders will remain at upgraded status level through December 31, 2024. Please note, enrolling through the normal Hertz Gold Plus Rewards enrollment process (e.g. at Hertz.com) will not automatically detect a cardholder as being eligible for the program and cardholders will not be automatically upgraded to the applicable status tier. Additional terms apply.
It’s not very common for mortgage lenders to offer cash back or some other sort of reward for taking out a mortgage.
Generally, you might get some sort of closing cost guarantee or some assurance that if they screw up, you’ll be compensated. Really, that’s just making you whole.
But Chase is looking to change that by offering a very healthy 100,000 Ultimate Rewards points (their own rewards currency) for those who apply for a mortgage (and close the sucker).
Update: They have lowered the bonus to 75,000 Ultimate Rewards points, but now offer a bonus across multiple different credit cards.
Chase Is Targeting Sapphire and Other Credit Card Customers
Get 75,000 UR points if you have Chase Sapphire Reserve
50,000 UR points if you have Chase Sapphire Preferred
25,000 UR points if you have Chase Sapphire (no fee version)
25,000 UR points if you have Chase Freedom or Freedom Unlimited
75,000 United Miles if you have Chase Mileage Plus Club
50000 United Miles if you have Chase Mileage Plus Explorer
In order to be eligible for this rather handsome bonus, you need to be an existing Chase credit card customer with either the Chase Sapphire Preferred card or the Chase Sapphire Reserve.
It has since been opened up to those with a Chase Sapphire (no fee version), a Freedom or Freedom Unlimited card, and those with Chase co-branded United credit cards.
Assuming you’ve got one of those, you need to take out a “new, residential first mortgage” with the bank. In other words, a purchase loan. You can’t just refinance your existing mortgage to snag the big bonus.
This appears to be a push to capture more purchase-money business, an emerging trend in the industry ever since mortgage rates began to increase and shrink the eligible pool of borrowers.
The loan application must also be submitted to Chase between March 19th and August 31st 2018, and as noted earlier, must actually fund and close.
Within 10 weeks of closing, Chase will deposit the bonus Ultimate Rewards to the primary cardholder’s account. In practice, they tend to credit these bonuses a lot quicker.
Is This Chase Mortgage Bonus a Good Deal?
It depends on how you value the UR points
And how low the rate and closing costs are with Chase
As opposed to using a different mortgage lender
That might offer a better rate/fee combination
Well, that all depends. Many value Ultimate Rewards points at nearly 2 cents apiece, which equates to $2,000. But their value is dependent on how they are used.
If you simply cash them in, which you’re more than welcome to do, you’ll only get as much as $750. Still, nothing to sneeze at.
Alternatively, if you use them for business class airfare, you might be able to get thousands of dollars in value out of them.
But then you have to ask yourself if acquiring frequent flyer miles is your goal when taking out a mortgage.
For me, if Chase happens to offer the best pricing and service, or close to it, the 75k bonus points could be enough to sway your decision.
On the other hand, if you can get a better mortgage rate elsewhere, with lower closing costs, the benefit of those points could evaporate quickly.
It should also be noted that the bonus might result in a 1099 (be taxed), whereas traditional credit card rewards aren’t taxed because they’re considered a rebate. That reduces the perceived benefit even more.
The good news is the mortgage market seems to be getting more competitive as lenders fight over less business. That sounds like a positive trend for prospective borrowers.
Chase has been working on revamping its mortgage business of late, promising a digital mortgage experience to keep up with the likes of SoFi and Quicken’s Rocket Mortgage.
They also recently announced the hiring of HGTV’s Property Brothers to promote their home loan lending business. It seems to be an attempt to make mortgages cool, or perhaps more appealing to Millennials, given the many new startups in the space.
As always, be sure to comparison shop before deciding on one lender to get perspective, otherwise you won’t know if you’re sitting on a good deal or a bad deal.
Love throwing down your credit card at dinner and regaling your friends with all the details of its perks?
Many credit card issuers have their own version of a referral program that allows current cardholders to recommend, or refer, a credit card to someone else. If the other person is approved for the recommended card, both parties stand to benefit, usually in the form of credit card points or cash.
Chase’s program — aptly named Refer-A-Friend — encompasses cash-back, travel, airline, hotel and business credit cards. Referring friends to one of Chase’s cards can be a pretty easy way to rack up thousands of extra rewards points without spending a dime. However, Chase imposes limits on the number of points or cash you can earn from referrals in a year, and a referral isn’t always the right move for all involved.
Here’s how Chase’s Refer-A-Friend program works.
How to Refer-A-Friend with Chase
The process of referring a friend to a Chase credit card is straightforward: You can send out the referral from Chase’s website or in the app.
To navigate from the website:
Go to https://creditcards.chase.com/refer-a-friend.
Select the “Refer friends now” button for the card that you’d like to recommend.
When prompted, enter your last name, zip code, and the last four digits of your own credit card.
Copy the unique URL, and send it to your friend by email, text or social media.
To navigate from the app:
Log in and select the account for the card that you want to refer.
Select “Refer a friend.”
Copy the unique URL, and send it to your friend by email, text or social media.
What to consider when you’re referring
As with many things in life, just because you can — doesn’t mean you should. When each successful referral results in a windfall of credit card points, it can be tempting to hand out referral links like candy on Halloween, but there are a few considerations to keep in mind.
Is the card a good fit for your friend?
Consider whether the card fits the other person’s lifestyle. For example, if your friend isn’t a frequent traveler, a Southwest card may not make sense. Suggesting a flashy new rewards card may be the wrong move when it comes to friends who are struggling with credit card debt, too.
There are limits
The maximum amount you can earn in referrals is limited per card you hold: The more Chase cards in your wallet, the more potential referral bonuses you can earn. These limits reset each calendar year. Here’s what’s offered as of June 2023.
Chase credit cards with Refer-A-Friend bonuses
Any Disney Visa card. (100 Disney Rewards Dollars for each approved friend up to 500 Rewards Dollars per year.)
Any Chase Ink card. (40,000 points for each approved business up to 200,000 points per year.)
A bonus isn’t a sure thing
It sounds simple enough, but you won’t get the referral bonus if your friend doesn’t apply for the card using your link. Even if you’ve taken the time to patiently explain all the ins and outs of the card’s rewards, if your friend forgets and applies on the Chase website instead of your link, you won’t get the credit. You also won’t earn a referral bonus if your friend’s application isn’t approved, or if you’ve reached the referral limits already.
You may have to pay taxes
In most cases, the rewards you earn from your credit card aren’t taxable — they’re viewed as rebates on spending, not as income. But rewards earned from referral bonuses are treated differently. The credit card issuer may issue a 1099 for the cash value of any rewards you earned for referrals.
How to apply with a Refer-A-Friend link
The process to apply for a card using a referral link is simple. But before you do, quickly compare credit card offers to make sure you’re actually getting the best deal. The value of sign-up bonuses can vary, so check Chase’s website and others like NerdWallet to see how the referral offer stacks up.
Then, if you decide to apply for the card using the referral, you’ll just need to visit the link that your friend sent you. If you’re approved, you may receive a response within minutes of submission. However, it can take up to a couple of weeks to get the physical card in the mail.
While applying for a new credit card is typically the fastest and easiest way to rack up a meaningful number of points and miles, sometimes the first bonus offer you see for a given card isn’t always the best.
Before applying for a new credit card, it makes sense to take a few minutes ensuring you’re getting the best deal possible.
This is important because you can often only get card welcome bonuses once — or at least only once for several years. Sometimes, targeted offers are available to lucky individuals who can get a higher sign-up bonus than just by going with the publicly-available link.
Targeted offers can be sent in the mail, via email, might be lurking in your online bank or loyalty account, can be sent to you by friends who make referrals or might sometimes even live in the CardMatch Tool. It’s important to say upfront that we’ll never know the full answer to how to get a better credit card bonus offer as companies spend a lot of money developing proprietary methods for generating and targeting these offers.
Still, we’ve been around card offers enough to make a few educated guesses on how this works — and how to improve the chances you find and notice these offers.
Related: These credit card offers are worth $1,000 or more
Use the CardMatch tool
Let’s start with a tool that is an obvious first stop when seeing if you have special offers available to you.
By using the CardMatch Tool (offers subject to change at anytime), you sometimes gain access to enhanced welcome offers on cards like The Platinum Card® from American Express or the American Express® Gold Card that’s available to a select group of individuals. In the past, we’ve seen CardMatch include an up to 125,000-point welcome offer for the Platinum Card and up to 75,000 points on the Gold Card after meeting minimum spend requirements.
The CardMatch website explains that after you input your information, a soft credit check will be performed.
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This means CardMatch accesses the information on your credit report, but this won’t show up on your credit report or affect your score in any way (i.e. it’s not a new inquiry on your report). Of course, if you go ahead and actually apply for one of these cards, then that will be a regular new account on your report.
CardMatch partners with several banks, including Chase, Amex and Capital One, and based on the information they obtain from your credit report, they use a proprietary algorithm specific to each card issuer to generate offers for you.
Anecdotally, we’ve seen some of the best CardMatch offers with American Express, specifically often available to those who don’t have any other open accounts with that bank. And while we didn’t find an especially high offer today in our searches, it has happened and is a place worth checking.
Related: How to use CardMatch to potentially get better offers
Check your pre-approval offers
Sometimes, you have better offers — or perhaps even better eligibility terms — available to you via some pre-approval offers.
These offers may arrive in your email inbox or physical mailbox, but you can also go looking for them. While a pre-approved offer doesn’t guarantee you’ll get approved, you likely have solid odds — and potentially access to better offers.
When logged into your Chase account, you can scroll to the top and select “Open an account” and then click on the “Just for you” option to see if there are any special terms or offers available for you based on your existing Chase relationship. While it’s not an exact science, the more accounts you already have open with Chase, the smaller chance a new account will be dangled in front of your face.
Related: All about the Chase 5/24 rule
Refer a friend
Sometimes, a bank decides that the best way to find cardholders similar to the ones they already have is to let their current cardholders do the ‘work’ in referring their friends. There’s usually a set number of bonus points or miles given to the one who makes the referral if someone gets approved with their links, making it a potential win-win.
These friend referral links can be the same, better or occasionally worse than the common public offer.
However, on the flip side, there are sometimes referrals that are better than the public offers either on their own or at least once you factor in bonus points you’ll get for referring someone like your partner to the card.
AMEX
Ask in person
There are some increased card offers that you can only get in person at the physical bank. For example, we’ve seen the Chase Sapphire Preferred have a 10,000-point higher bonus in the physical Chase bank than online.
Pay attention to your inbox
Sometimes the best offers will come directly to you and aren’t available via shareable links. When you get a credit card mailer in the mail or in your email, it’s certainly worth taking a look at it and comparing it to the publicly available offers, which you can often see on this page.
We’ve seen individually targeted offers as high as 200,000 points for some cards when public offers are just at 100,000 or less, so always keep your ears and eyes peeled when something is addressed directly to you and don’t opt out of marketing emails and sends from banks unless you really don’t want to receive anything.
Bottom line
While we’ll never know exactly why one person receives a targeted offer and the next person doesn’t, it helps to put yourself in the mind of the companies sending out these offers and think about what they’re trying to achieve: new business.
When it comes to new card openings, banks are looking for responsible and valuable long-term customers, while airlines and hotels are simply looking to attract new customers away from their rivals. If a targeted offer succeeds in getting even a few years of loyalty, it’s likely done its job perfectly.
Once you see an offer, it’s worth comparing it to the offer history for that card in one of the guides below so that you can be confident that you are maximizing your points and miles:
Additional reporting by Ethan Steinberg and Summer Hull.
For rates and fees of the American Express Platinum Card, please click here. For rates and fees of the American Express Gold Card, please click here .
If you haven’t started your children or teens off with a kids checking account optimized for their needs, you’ll want to help your college student open a checking account before they begin school.
Opening a checking account for your child can teach them about money management and financial responsibility, along with providing them an easy way to make debit card purchases. It’s never too late to get started.
One advantage to helping your young adult open their first student checking account is they have more options than they might have when they were 16 or younger. Students over 18 can open a bank account with few restrictions.
But choosing a student checking account may give them access to higher interest rates and added features and benefits, along with fee-free checking, no monthly maintenance fees, and no minimum deposit to open an account.
12 Best Student Checking Accounts
Not surprisingly, many of the best student checking accounts come from banks that also offer some of the best checking accounts for any age. However, the products below – in most cases – are tailored for young adults from the ages of 18 to 24, with the features this age group desires most, including an intuitive mobile app and low or non-existent minimum deposit requirements.
1. Best for Students under 18: Capital One MONEY Teen
Most of the student bank accounts on our list exclude children under the age of 17 or 18. Capital One MONEY Teen checking is available to children ages 8 and up. It comes with all the benefits and security of a big bank, providing peace-of-mind. This includes access to Capital One branches and Capital One Cafes for in-person service. This account also serves as a great tool to teach your young adult the basics of banking.
Capital One MONEY Teen checking is a joint account with no monthly fee, no overdraft fees, and access to 70,000 ATMs with no fees. Plus, earn 0.10% on all balances, including those in checking.
You can link Capital One MONEY Teen checking to any other bank account through any bank or neobank, making it easy to transfer money to your teen while they are away at college. Plus, you can keep tabs on their spending with their linked account in the Capital One mobile app.
When they graduate, your teen can hold onto their MONEY account or transfer the funds into a top-rated Capital One 360 Checking account of their own.
2. Best for Working Students: Chime
Chime is not a bank. It’s a financial technology company and mobile app backed by Stride Bank, NA, and The Bancorp Bank. Many features make it perfect for working students. First, you can receive your paycheck up to two days earlier than you might at other banks with ACH deposit.
Plus, you can set up automatic transfers to your linked Chime Savings account, helping you to establish good financial habits early on. Simply set up Chime to transfer a percentage of your paycheck into your Savings Account every time you receive a direct deposit.
When you use your debit card for purchases, the “Save When You Spend” program rounds up your purchase and transfers the difference directly into savings. That small change can really add up, whether you’re saving for your first apartment after college, a new car, or your next tuition bill.
For working students looking to build their credit, Chime gives account holders access to a Credit Builder Secured Visa, with no annual fee, no credit check, and no security deposit required. Instead, the credit account is secured by your Chime checking account with monthly direct deposits.
Like many of the best student bank accounts on this list, Chime has no overdraft fee, no monthly service fee, no ATM fee for in-network ATMs, and no minimum balance requirements.
3. Best Account Opening Bonus: Chase College Checking
Chase Bank has been handing out student account opening bonuses like they hand out lollipops at their branches lately. College students ages 17 to 24 can snag a $100 bonus when they open an account online or at a local branch (students age 17 will need to visit a branch). You’ll just need to make 10 qualifying transactions within the first 60 days of opening the student bank account.
What’s a qualifying transaction? Virtually anything, according to the Chase website, including debit card purchases, online bill payments, Chase QuickDeposits, Zelle transfers, and ACH credits. Bank as you normally would, and you should easily earn that $100.
In addition to the generous sign-up bonus, Chase College Checking has no monthly fees for college students for up to five years, access to 16,000 ATMs and 4,700 branches across the U.S., and zero liability protection for unauthorized debit card purchases.
Chase Overdraft Assist covers purchases that exceed your account balance. You’ll pay no overdraft fee if you’re overdrawn by $50 or less at the end of the next business day.
4. Best for Yield: Ally Interest Checking
Ally Bank is the first bank on our list not designed specifically for students, but the vast array of features in this interest bearing checking account makes it ideal for young adults.
Ally Bank offers an APY of 0.25% on checking account balances and 4.00% APY on balances in a linked Ally Bank savings account. Neither account has any monthly fees.
Ally offers several features to help those on a tight budget manage their money. You can organize your money into spending and saving buckets, which can help you see exactly where your money goes each month. Ally will also review your bank accounts and help you find opportunities to save, and shuttle that extra money into your high yield Ally savings account.
Customers who have deposited $100 or more into their Ally checking account, or $250 via direct deposit, gain access to Ally’s CoverDraft service after 30 days. This protection covers up to $100 or $250 in charges that would overwise overdraft your account. Some purchases, including Zelle transfers, or ATM withdrawals, may be declined if they would put your account into overdraft.
Ally has no monthly maintenance fee, no overdraft fees, no ATM fee for in-network ATM transactions and no minimum balance requirement.
5. Best for Referrals to Earn Extra Cash: GO2bank
GO2bank, the digital bank associated with the top financial technology company Green Dot, offers an easy, straightforward money account with overdraft protection up to $200 with eligible direct deposits. The linked savings account pays a high 4.5% APY, with no fees for qualifying customers and no minimum balance requirement.
You can get regular ACH deposits from your job or side gigs up to two days earlier than most traditional banks. If you receive government benefits, such as Social Security, you can receive those deposits up to four days early.
Your GO2bank account will have a monthly service fee that costs $5 per month, unless you have a qualifying direct deposit that month. You will also pay fees for transfers from a linked debit card from another bank or fintech, mobile check deposits, and cash deposits.
If you are the type of person with friends who come to you for advice, you can earn $50 for each friend you refer to GO2bank who signs up with direct deposit. Your friend will also earn $50. You can use this offer for up to 30 friends, yielding $1,500 annually. This makes a GO2bank account great for social media influencers or college students with a large friend group.
6. Best for Full-Service Banking: Bank of America Advantage SafeBalance Banking
Bank of America Advantage checking accounts offer options for people in various stages of their financial life. College students might be best to start out with Bank of America Advantage SafeBalance banking, a straightforward money account with no overdraft fee and no checks.
The account has no monthly fee for students under the age of 25 or customers under the age of 18. Preferred Rewards customers also receive free checking. There is a $25 minimum deposit to open an account.
New Bank of America customers can earn a $100 account opening bonus when they open an account and set up direct deposits of $1,000 or more within 90 days.
7. Best for Comprehensive Money Management: PNC Virtual Wallet Student
Money Magazine named the PNC Virtual Wallet on its best banks for students list three years running. PNC Bank divides this mobile account into three separate accounts for everyday spending, “reserve,” or short-term savings, and “growth” for long-term savings.
The account has no monthly service fee for students for up to six years, along with all the benefits of a regular PNC Virtual Wallet. Additionally, students receive a courtesy refund of your first overdraft fee on your Spend account, one free incoming domestic or international wire transfer per statement period, and free paper statements if you opt in to receive them.
Once six years have passed or you are no longer a student, your account converts into a regular PNC Virtual Wallet, which may have associated monthly fees. Check the PNC website at that time to determine the fees and how you can waive them.
Your PNC Virtual Student Wallet pays a 0.01% APY on money in your Reserve account, and .02% on account balances up to $2,499 in your Growth account, with .03% APY on balances over $2,500. These may not be the best rates available, but the reputation of PNC Bank, along with the money management features in a Virtual Wallet Student account, make this an account worth considering for students just learning to budget.
8. Best for Establishing Savings Habits.: Wells Fargo Clear Access Banking
As one of the Big Four banks in the U.S., Wells Fargo offers a reliable and safe place to store your money, plus access to thousands of branches nationwide.
The Wells Fargo Clear Access banking account is great for teens and college students, since it’s available for account holders ages 13 to 24. Anyone under the age of 18 will need to open their account in a branch and anyone younger than 17 must have an adult aged 18+ as a joint account holder. The account has no monthly maintenance fee for anyone 24 or younger. A $25 minimum opening deposit is required.
Wells Fargo Clear Access banking is a simple, straightforward money account with no checks and personalized service at Wells Fargo branches. There are no overdraft fees with the account, but also no overdraft protection. Transactions that exceed the account or minimum balance amount will be declined, which helps put teens and young adults in charge of their money.
You can link your Clear Access bank account to a Way2Save Savings account and earn a 0.15% APY. You can establish good money habits by setting up automatic savings. Wells Fargo will transfer $1 from your Clear Access account into your checking account each time you use online bill pay or use your debit card for a one-time purchase. You can also transfer as little as $25 per month or $1 per day into your account to see your savings grow even faster.
9. Best for Cash Back: Discover Cashback Debit
The Discover Cashback Debit account may not be marketed to teens and students, by name. But, it’s enticing to anyone looking for a standard checking account with no monthly service fees and 1% cashback on debit card purchases, up to $3,000 per month. It’s highly unlikely for most college students to max out that free money (unless they are putting housing, tuition, and car expenses on their card).
Discover Cashback! debit card offers many of the benefits you’d expect from these top-rated money accounts, including early direct deposit, 60,000+ no-fee ATMs, and overdraft protection from your linked Discover Savings with no fees. Discover charges no fees for insufficient funds, bank checks, regular checks, or expedited delivery of a replacement debit card.
These features make it one of the most convenient accounts you can hold. Plus, you don’t have to worry about “aging out” of the account and facing fees for a non-student bank account. Your Discover Cashback Debit account will be free no matter your age. Link it to a Discover Savings Account to earn 4.0% APY with no minimum deposit required.
10. Best for Unlimited Out-of-Network ATM Fee Reimbursement – Axos Bank Rewards Checking
Another bank account not marketed to students but meeting all their needs is the Axos Bank Rewards Checking account. This account has no monthly fees. It also reimburses ATM fees for out-of-network ATMs nationwide, which is great for students who travel domestically or who don’t have ATMs in their network on campus.
Pay no overdraft fee or non-sufficient funds fees with this account. Best of all, earn an APY of 0.40% on your checking balance if you receive monthly direct deposits of $1,500-plus. Young investors can ramp up their interest rate by 1% with an average daily balance of $2,500 in an Axos Invest Managed Portfolio Account, plus another 1% by holding $2,500 in a self-directed trading account. If you take out a loan through Axos, you can add another 0.60% to your APY.
College students likely won’t regret opening an Axos Bank account to take them through adulthood, especially with options for investing, low mortgage rates, car loans, and more.
Plus, earn a welcome bonus when you open an account and have direct deposits of at least $1,500 within a single calendar month during the first three months of account opening.
11. Best Credit Union: Alliant Credit Union Teen Checking
Alliant Credit Union offers a teen checking account for minors ages 13 to 17. The account is insured up to $250,000 per account holder by the National Credit Union Administration (NCUA). The adult account holder must be an Alliant Credit Union member. But it’s easy to join by depositing $5 into an Alliant Credit Union saving account. Alliant Savings earns an APY of 0.25%.
The teen checking account has no overdraft fees or non-sufficient funds fee. It also has no monthly fees or minimum balance requirements. Account holders gain access to 80,000+ fee free ATMs nationwide plus $20 per month in ATM fee reimbursement for out-of-network ATM use. This is an interest earning checking account which also pays 0.25% APY on all balances as long as you have at least one deposit, via ACH direct deposit, mobile check deposit, or transfer from another bank or credit union, each month.
12. Best for Young Shoppers: Varo Bank
Varo Bank is another account not necessarily marketed to college students but definitely optimized for their needs. The Varo Bank debit card delivers up to 6% cash back, with money deposited into your Varo account as soon as you accrue $5 in rewards.
Like many of the best student accounts on this list, Varo has no monthly fee, no minimum balance requirements, and no overdraft fee. If you need money before payday, you can use Varo Advance, an interest-fee program that allows you to borrow up to $250 and pay it back within 30 days. You will not pay fees to borrow less than $20. Borrowing up to $250 comes with fees that can be as high as $15, depending on the amount of cash advance you need.
Varo Bank uses the Allpoint network of ATMs, with fee free access to 55,000+ ATMs nationwide. Using other bank ATMs could result in charges up to $3 from Varo and fees charged by the other banks, as well.
It pays to open a linked Varo Bank savings to take advantage of a high 3% APY. Account holders with direct deposits equal to $1,000 per month and a positive balance in their Varo checking and savings can earn up to 4% APY.
One of the best things about a Varo account is it can grow with you. You won’t pay additional fees as an adult out of college, so you can keep the same bank account you started with for your entire life if you want.
Methodology: How We Select the Best Student Checking Accounts
To find the best student checking accounts, we evaluated the monthly maintenance fees, ATM fees, minimum deposit requirements, features, benefits, banking services provided, along with customer service and mobile app access at several of the biggest and most well-known banks and credit unions.
ATM Network
Most banks have ATM networks or partner ATM networks of 20,000 or more ATMs nationwide where you can use your debit card with no ATM fees. You might be surprised to learn that even online banks and financial technology companies that are not a bank provide access to thousands of ATMs nationwide through partner programs.
Nationwide availability (physical locations or mobile access)
College students often split time between their college campus and the home where they grew up. Finding a bank with physical locations in the areas they live or an online bank that provides a mobile banking app with fee free mobile banking from anywhere is important.
Fees and minimum requirements
Bank fees no longer have to be a way of life for today’s young adults. We chose financial institutions with no monthly maintenance fees or easy ways to waive maintenance fees.
Benefits such as high APY, cash-back rewards, or other additional perks
Student checking accounts today are more than just “bare bones” places to store your cash. Many student bank accounts offer perks, benefits, and high-yield savings or an interest bearing checking account to provide added value.
Overdraft fees
Cash management mistakes happen, especially when young adults first start learning to budget and manage their finances. Many banks have no overdraft fees and some offer overdraft protection to help out in a pinch.
How to Choose the Best Bank for College Students
We’ve offered 12 solid options to help you choose the best student checking account. Before you open a student bank account, it’s a good idea to think about what you need in your primary checking account and a linked savings.
The list below makes it easy to review your must-haves and nice-to-haves when you choose your first bank account as a college student.
Best student checking account interest rates
If you’re looking to earn interest on your standard checking account, many banks offer this feature. Review annual percentage yield (APY) figures for your top choices.
Remember, a higher savings interest rate might benefit you more, since money in your checking account tends to fluctuate based on paychecks, bills, and expenses. The best checking account may not pay interest, but can save you money in other ways.
Annual Percentage Yield (APY)
Likewise, you can put money in your pocket with an account with linked savings offering a high annual percentage yield (APY).
Mobile Check Deposit
If you get paid via paper checks, you’ll want to find an account with a mobile app that offers mobile check deposit. Find out how fast deposits clear, and if mobile banking services are fee free.
No Monthly Maintenance Fees
Many banks today make it easy to find a free checking account with no maintenance fees. If you have to pay a monthly maintenance fee, find out exactly what you’re getting for your money. Find out if the perks and benefits, such as a cash back debit card or reimbursement of ATM fees make the maintenance fees worthwhile.
Minimum Deposit and Minimum Balance Requirements
When you’re just getting started, cash may be tight. It’s important to find an account with no minimum deposit to open.
Banking Services Provided
Accounts should have customer service online, by phone or in branches, plus an easy-to-use mobile app and a debit card with no ATM fees.
FAQs About Student Checking Accounts
Read what people are asking about the best student checking accounts, including minimum deposit requirements and benefits of a student checking account.
What are the benefits of a student bank account?
A bank account tailored for students gives young adults a head start on their financial future and learning how to manage money. For students who work, they can receive direct deposits in their student account, pay bills online, and send money to friends and family using Zelle.
How to get a student checking account bonus?
Several student checking accounts, including Chase, provide sign-up bonuses. Make sure to read the fine print and complete the requirements, which may include setting up direct deposit or making a minimum opening deposit, to collect the bonus.
Can I open a student checking account without a deposit?
To open a student checking account without a minimum deposit amount, simply look for a bank account, like Varo, that has no minimum opening deposit.
Are there any downsides to opening a student checking account?
When you open a student checking account, you’ll want to make sure you won’t pay monthly maintenance fees. Some student checking accounts convert to a regular account once the student graduates, and there may be fees associated with the regular account.
Is there an age limit on a student checking account?
Most student checking accounts are open to students from the age of 18 to 24 without a joint account holder. Customers under the age of 18 may be able to open an account with a joint owner.
Can minors open student checking accounts?
Accounts like Capital One Money Teen are available to children ages 8 and up with a joint account holder. Some other accounts require students to be 18 or older.
What happens to your student checking account when you graduate?
Many of the student bank accounts on this list won’t change when you graduate college. Others offer the option to convert your account to one of the bank’s regular checking products. A Chase College Checking Account has no monthly fees for your first five years in college, but if you graduate or exceed that time frame, you might pay a $6 monthly maintenance fee unless you meet other requirements.