Save more, spend smarter, and make your money go further
Entering the real world is exciting. For young professionals this often means getting your first career-track job, moving into your own place and taking full control of your finances.
While everyone wants to get started on the right foot, there are some common mistakes young professionals make that can have long-lasting impact.
Figuring It Out Later
This is a time in your life when you may find yourself making many big decisions in a small amount of time.
Don’t say yes and figure it out later. Before you sign a lease or mortgage, determine whether you can afford it.
The easiest way to do this is to create a budget.
You may think you need to wait a while until your expenses “normalize” since when you first move into a place, there can be one-time costs like furniture and security deposits.
But if you wait a few months, you may find yourself already in some serious debt.
[Read: Can You Get Your Student Loans Forgiven?]
Do some research and make a budget immediately.
Then adjust your budget when you see how much money you are bringing home and how much you are really spending.
It’s best to start out tracking your spending right away, instead of playing catch-up later.
Assuming You Will Make More
You may be disappointed by your first salary. You may work in an industry where big bonuses are normal.
Regardless, plan your finances around the salary you are guaranteed right now. This gives you the freedom to make choices in the future.
If you are living beyond your means now, that raise or bonus will only go to paying off debts.
[Read: Can Your Job Hurt Your Credit?]
If you budget for your current salary, you can use that raise or bonus to boost your emergency fund, increase your retirement savings, or treat yourself.
Don’t spend your future self into a corner.
Not Asking Questions
Young professionals are covering a lot of new territory — making decisions we haven’t made before.
Don’t be afraid to do some research or ask for help. Read the fine print before you sign documents and if you don’t understand something, stop.
[Read: Your First Credit Card: What You Need to Know]
Before you accept a job, sign a lease or accept a credit card, ask a few questions.
Being financially independent doesn’t mean you have to be totally alone in the decision-making process.
There are others who have done these things before, so seek out a mentor to help guide you through the process.
There’s nothing more grown up than knowing when you need help.
“Top 3 Financial Mistakes Young People Make” was provided by Credit.com.
Save more, spend smarter, and make your money go further
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It might sound easy enough to do, but many parents actually don’t know the best way to save money for kids or, at the very least, where to start.
I am not saying my ways are the best, but they certainly work for me and my little ones. Depending on your current financial situation, they might help you figure out the best way to save money for your kids.
Using these tips has helped me come up with a way to secure a better financial future for my kids without overstretching or causing unnecessary financial strain in the now.
Why Is It Important to Save Money for Our Kids?
Healthy savings will get them off on the right foot when they leave home to start a life of their own, increasing their potential for a successful future.
The money savings process provides a platform to impart financial literacy, teach financial responsibility from a tender age, and teach discipline when it comes to things like budgeting and delayed gratification.
The savings also functions as an emergency fund should anything happen to us or our kids while they are still growing up. You will enjoy the peace of mind of knowing they are cared for in the case of almost any eventuality. A will or inheritance fund ensures the savings will be spent wisely for the benefit of your kids.
Your Best Practice Guide to Saving Money for Kids
Here are some excellent tips on the best way to save money for kids.
Define Your Savings Goal
The ideal savings option will vary for different parents based on their financial goals and circumstances. Motivation ranges from emergency funds to specific stages of the child’s future, like higher education, buying their first car, or even jump-starting retirement savings. Define what you are saving for, set targets, and draw up a plan.
Set Up a Savings Account(s) for the Kid(s)
Approach your preferred financial institution and set up an account designed for the savings you settled on. Similar solutions are structured differently across each financial institution.
Budgeting
As parents, we budget all the time. Budgeting is a great way to improve money management, ensuring you always leave something for your kid’s savings account (and your own fun fund for date night or vacation). Many sources of funds can be included in the savings plan.
You can set it up so that an amount is transferred from your own bank account to the kid’s account. Some parents, myself included, also deposit their work bonuses in their kids’ savings accounts up to a predetermined date.
Alternatively, you can agree to collect all the money the children earn from chores, lawn mowing, babysitting, or other side jobs they do on their own and then set that money aside in their savings accounts after giving them a weekly stipend for their hard work, of course.
Financial Education
All this planning and investment can be undone if your kid grows up without the financial education to develop positive money habits. Involve them in your financial planning at a young age so they grasp the concept of money. Teach them your ways, one might say.
Financial literacy involves more than what children learn from listening and observation. It involves practicing positive money management habits like restrained spending, taming the urge for instant gratification and budgeting.
Add a checking account to their savings account so they get used to financial tools like a debit card for younger kids and banking apps for teens. Most of these allow the parents to keep an eye on the child’s spending habits, too, so we can easily reign things in if they start running wild.
What Is the Best Way to Save Money for a Child?
Now that you are familiar with the territory, let’s look at the options available as our kids outgrow the piggy bank we have been filling with spare change since they were babies.
College Savings Plans
College is quite expensive, and it pays to have a head start on your child’s college savings so there is adequate time to accumulate funds gradually. A good education increases your child’s earning potential and job security, leading them to financial success.
The 529 Investment Plan
A 529 Investment Plan is a tax-advantaged investment account designed to encourage saving toward future education expenses. It’s named after Section 529 of the Federal Tax Code and is sponsored by the state or a state agency.
Savings are tax-deferred, and you can withdraw the funds tax-free to pay for qualified education expenses like tuition, books, and accommodation. It lets you save for your child’s future attendance at designated colleges or universities at prevailing rates.
Custodial Accounts
A custodial account offers another opportunity to save on your child’s behalf or gift them when you get a bonus or any other windfall. One party, the custodian (typically the parent), controls the funds on behalf of the minor (the beneficiary), who will gain access to the account when they come of age (this ranges from 18 to 21, depending on the state).
As a custodian, you are free to spend the funds on anything, provided it is for the benefit of the minor. While they don’t come with the tax benefits of a 529 plan, they cover a wider scope of expenses. Once your child attains the required age, you will relinquish control of the account to them, and they can claim full use of the funds.
Uniform Transfers to Minors Act (UTMA) Accounts and Uniform Gifts for Minors Act (UGMA)
UTMA and UGMA accounts are popular examples of custodial accounts. They are set up to hold gifts that a minor has received. Once the gift is granted or transferred to the account, it can’t be revoked and becomes the minor’s asset. It is held under their social security number and taxed as their income.
Custodial Brokerage Account
A custodial brokerage account refers to when the custodial account is used as an investment account to increase savings. Savings and gifts can be channeled to a mutual fund, invested in stocks or bonds, transferred to money market accounts or any other credible investment. You will manage these investments until your child comes of age. And then it is up to them to take over.
Creating a Trust Fund for Your Child
You can always get a lawyer, an accountant, or a team with both professions to set up a trust fund for your kid(s). Besides savings, the trust fund can incorporate assets you want to transfer to the kids as they age. The trust will dictate the process and ensure your assets are transferred to the right beneficiaries when the time comes.
How to Save Money for Kids in a Nutshell
There is no limit to the number of savings accounts you can have for your child. It is actually encouraged to spread your eggs in different baskets so that you can optimize them.
One might have competitive interest rates, while another allows you to invest in assets. You can also save for a particular item that requires a separate account without locking out subsequent gifts.
Just identify the combination that works for you and make sure you teach them about other aspects of financial health as they grow, and you can cross one more thing off your list of worries as a parent. Happy savings!
It might sound easy enough to do, but many parents actually don’t know the best way to save money for kids or, at the very least, where to start.
I am not saying my ways are the best, but they certainly work for me and my little ones. Depending on your current financial situation, they might help you figure out the best way to save money for your kids.
Using these tips has helped me come up with a way to secure a better financial future for my kids without overstretching or causing unnecessary financial strain in the now.
Why Is It Important to Save Money for Our Kids?
Healthy savings will get them off on the right foot when they leave home to start a life of their own, increasing their potential for a successful future.
The money savings process provides a platform to impart financial literacy, teach financial responsibility from a tender age, and teach discipline when it comes to things like budgeting and delayed gratification.
The savings also functions as an emergency fund should anything happen to us or our kids while they are still growing up. You will enjoy the peace of mind of knowing they are cared for in the case of almost any eventuality. A will or inheritance fund ensures the savings will be spent wisely for the benefit of your kids.
Your Best Practice Guide to Saving Money for Kids
Here are some excellent tips on the best way to save money for kids.
Define Your Savings Goal
The ideal savings option will vary for different parents based on their financial goals and circumstances. Motivation ranges from emergency funds to specific stages of the child’s future, like higher education, buying their first car, or even jump-starting retirement savings. Define what you are saving for, set targets, and draw up a plan.
Set Up a Savings Account(s) for the Kid(s)
Approach your preferred financial institution and set up an account designed for the savings you settled on. Similar solutions are structured differently across each financial institution.
Budgeting
As parents, we budget all the time. Budgeting is a great way to improve money management, ensuring you always leave something for your kid’s savings account (and your own fun fund for date night or vacation). Many sources of funds can be included in the savings plan.
You can set it up so that an amount is transferred from your own bank account to the kid’s account. Some parents, myself included, also deposit their work bonuses in their kids’ savings accounts up to a predetermined date.
Alternatively, you can agree to collect all the money the children earn from chores, lawn mowing, babysitting, or other side jobs they do on their own and then set that money aside in their savings accounts after giving them a weekly stipend for their hard work, of course.
Financial Education
All this planning and investment can be undone if your kid grows up without the financial education to develop positive money habits. Involve them in your financial planning at a young age so they grasp the concept of money. Teach them your ways, one might say.
Financial literacy involves more than what children learn from listening and observation. It involves practicing positive money management habits like restrained spending, taming the urge for instant gratification and budgeting.
Add a checking account to their savings account so they get used to financial tools like a debit card for younger kids and banking apps for teens. Most of these allow the parents to keep an eye on the child’s spending habits, too, so we can easily reign things in if they start running wild.
What Is the Best Way to Save Money for a Child?
Now that you are familiar with the territory, let’s look at the options available as our kids outgrow the piggy bank we have been filling with spare change since they were babies.
College Savings Plans
College is quite expensive, and it pays to have a head start on your child’s college savings so there is adequate time to accumulate funds gradually. A good education increases your child’s earning potential and job security, leading them to financial success.
The 529 Investment Plan
A 529 Investment Plan is a tax-advantaged investment account designed to encourage saving toward future education expenses. It’s named after Section 529 of the Federal Tax Code and is sponsored by the state or a state agency.
Savings are tax-deferred, and you can withdraw the funds tax-free to pay for qualified education expenses like tuition, books, and accommodation. It lets you save for your child’s future attendance at designated colleges or universities at prevailing rates.
Custodial Accounts
A custodial account offers another opportunity to save on your child’s behalf or gift them when you get a bonus or any other windfall. One party, the custodian (typically the parent), controls the funds on behalf of the minor (the beneficiary), who will gain access to the account when they come of age (this ranges from 18 to 21, depending on the state).
As a custodian, you are free to spend the funds on anything, provided it is for the benefit of the minor. While they don’t come with the tax benefits of a 529 plan, they cover a wider scope of expenses. Once your child attains the required age, you will relinquish control of the account to them, and they can claim full use of the funds.
Uniform Transfers to Minors Act (UTMA) Accounts and Uniform Gifts for Minors Act (UGMA)
UTMA and UGMA accounts are popular examples of custodial accounts. They are set up to hold gifts that a minor has received. Once the gift is granted or transferred to the account, it can’t be revoked and becomes the minor’s asset. It is held under their social security number and taxed as their income.
Custodial Brokerage Account
A custodial brokerage account refers to when the custodial account is used as an investment account to increase savings. Savings and gifts can be channeled to a mutual fund, invested in stocks or bonds, transferred to money market accounts or any other credible investment. You will manage these investments until your child comes of age. And then it is up to them to take over.
Creating a Trust Fund for Your Child
You can always get a lawyer, an accountant, or a team with both professions to set up a trust fund for your kid(s). Besides savings, the trust fund can incorporate assets you want to transfer to the kids as they age. The trust will dictate the process and ensure your assets are transferred to the right beneficiaries when the time comes.
How to Save Money for Kids in a Nutshell
There is no limit to the number of savings accounts you can have for your child. It is actually encouraged to spread your eggs in different baskets so that you can optimize them.
One might have competitive interest rates, while another allows you to invest in assets. You can also save for a particular item that requires a separate account without locking out subsequent gifts.
Just identify the combination that works for you and make sure you teach them about other aspects of financial health as they grow, and you can cross one more thing off your list of worries as a parent. Happy savings!
With the start of summer upon us, now may be a great time to evaluate your credit card portfolio. Credit card sign-up bonuses and welcome offers are the quickest and easiest way to rake in lots of points and miles, so we regularly update the roundup of our favorite current offers in our best credit cards guide.
But to help you keep up with an ever-changing list of bonuses, we’ve also compiled a list of the best card offers currently available — especially the ones that are worth an extra look right now because they are at all-time highs or may end soon.
Since many issuers have restrictions on how often you can earn a bonus on a card, it’s important to time your application for when there’s a good offer. Also, higher bonuses don’t always stick around for long, so if you’re considering one of these offers, you’ll want to hop on it sooner rather than later.
Finally, if you’re not ready to jump on a higher-end card, consider these great starter cards or even one with a 0% introductory annual percentage rate (APR) offer.
The best credit card offers for June 2023
Card
Sign-up bonus/welcome offer
Welcome offer value*
Annual fee
The Business Platinum Card® from American Express
120,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
$2,400.
$695 (see rates and fees).
Ink Business Preferred Credit Card
100,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
$2,000.
$95.
The Platinum Card® from American Express
80,000 points after you spend $6,000 in the first six months, though you may be able to get a higher bonus through the CardMatch tool (terms apply).
$1,600.
$695 (see rates and fees).
American Express® Green Card
60,000 points after you spend $3,000 on purchases in their first six months of card membership. Also, get 20% back on eligible travel and transit purchases in your first six months to earn up to $200 back.
$1,400 ($1,200 in points plus up to $200 in cash back).
$150 (see rates and fees).
Capital One Venture X Rewards Credit Card
75,000 miles after you spend $4,000 on purchases in the first three months of account opening.
$1,388.
$395.
Capital One Venture Rewards Credit Card
75,000 miles after you spend $4,000 on purchases in the first three months of account opening.
$1,388.
$95.
Chase Sapphire Reserve
60,000 bonus points after you spend $4,000 on purchases in the first three months of account opening.
$1,200.
$550.
Chase Sapphire Preferred Card
60,000 bonus points after you spend $4,000 on purchases in the first three months of account opening.
$1,200.
$95.
American Express® Gold Card
60,000 points after you spend $4,000 in the first six months of card membership, though you may be able to get a higher bonus through the CardMatch tool (terms apply).
$1,200.
$250 (see rates and fees).
Southwest Rapid Rewards Plus Credit Card, Southwest Rapid Rewards Premier Credit Card, and Southwest Rapid Rewards Priority Credit Card
60,000 bonus points plus a 30% off promo code after spending $3,000 on purchases in the first three months from account opening.
$900.
$69 (Plus), $99 (Premier) and $149 (Priority).
United Club Infinite Card
80,000 bonus miles and 1,000 Premier qualifying points (PQP) after you spend $5,000 on purchases in the first three months from account opening. Offer ends Aug. 9.
$880.
$525.
IHG Rewards Premier Business Card
165,000 points after spending $3,000 on purchases in the first three months from account opening.
$825.
$99.
Hilton Honors American Express Surpass® Card
130,000 Hilton Honors bonus points and a free night reward after spending $2,000 in purchases on the card in the first three months of cardmembership. Offer ends July 19.
$780.
$95 (see rates and fees).
* Welcome offer value is determined using TPG valuations and is not provided by nor reviewed by the issuer.
The Business Platinum Card from American Express
This business card stands out not only for its 120,000-point welcome offer but thanks to added travel perks that can easily cover the card’s $695 annual fee (see rates and fees). Cardholders enjoy automatic Gold status in both the Hilton Honors and Marriott Bonvoy loyalty programs, along with access to a wide variety of airport lounges — including Amex Centurion, Priority Pass and Delta Sky Club (when traveling on same-day Delta flights). Enrollment is required for select benefits.
Cardholders also enjoy 5 points per dollar on flights and prepaid hotels booked at American Express Travel, along with 1.5 points per dollar on eligible purchases in select business categories and eligible purchases of $5,000 or more (on up to $2 million of these purchases per calendar year).
Related: Amex refreshes Business Platinum Card with new perks, higher annual fee and a 120,000-point bonus
On top of that, the card comes with up to $200 in annual airline fee statement credits and a 35% points rebate for flights booked through Amex Travel in first or business class on any airline (up to 1 million points back per calendar year), or in any class on the U.S. airline of your choice each year. Non-travel benefits include up to $400 in annual statement credits toward U.S. Dell purchases, up to $360 in credits toward Indeed, up to $150 toward select Adobe purchases and up to $120 toward wireless telephone services.
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Enrollment is required for select benefits.
Read our review of the American Express Business Platinum Card for more information.
Official application link: The Business Platinum Card® from American Expresswith 120,000 points after you spend $15,000 on eligible purchases with the card within the first three months of card membership.
Ink Business Preferred Credit Card
Then there’s the Ink Business Preferred. According to TPG’s valuations, this card’s welcome bonus alone is worth $2,000 since you can take advantage of Chase’s excellent collection of airline and hotel transfer partners. Points redeemed through the Chase travel portal are worth 1.25 cents each, which isn’t bad, either.
Another factor in this card’s favor? Its tremendous earning rates. You’ll earn 3 points per dollar across the following categories on up to $150,000 in combined purchases (1 point per dollar thereafter):
Travel.
Shipping purchases.
Internet, cable and phone services.
Advertising on social media sites and search engines.
Depending on which categories you spend in, you could earn a whopping 450,000 bonus points per year if you maxed out that $150,000 cap.
Among the Ink Business Preferred’s unsung benefits are cellphone protection, primary rental car coverage (when renting for business purposes) and other travel and purchase protections. You can also add employee cards to your account for free.
Read our full review of the Ink Business Preferred Credit Card for more information.
Official application link: Ink Business Preferred Credit Card with 100,000 bonus points after you spend $15,000 on eligible purchases with the card within the first three months of account opening.
The Platinum Card from American Express
Often referred to as the king of the premium travel rewards cards, the Amex Platinum offers a slew of benefits — along with a $695 annual fee (see rates and fees). Cardholders enjoy perks such as automatic Gold status with both Hilton Honors and Marriott Bonvoy plus access to a wide range of airport lounges, including Amex Centurion, Priority Pass and Delta Sky Club (on same-day Delta flights). On top of that, you’ll get up to $200 in annual airline fee statement credits, an up-to-$200 hotel statement credit to use toward prepaid Amex Fine Hotels + Resorts or The Hotel Collection bookings (the latter of which requires a minimum two-night stay) via Amex Travel, and an up-to-$189 Clear Plus membership statement credit — along with numerous other perks. Enrollment is required for select benefits.
Related: It’s a ‘lifestyle’ card now: A closer look at the Amex Platinum’s 6 new benefits
Non-travel benefits include an up-to-$240 digital entertainment statement credit (split into monthly $20 credits) for Audible, The New York Times, SiriusXM, Peacock, The Wall Street Journal and services under the Disney umbrella — including Disney+, ESPN+ and Hulu.
Cardholders also receive an up-to-$155 Walmart+ credit (subject to auto-renewal; Plus Ups are excluded), an up-to-$300 SoulCycle bike credit and an up-to-$300 Equinox statement credit for eligible Equinox memberships (now available as an annual benefit rather than monthly credits). You also receive Uber VIP status and up to $200 in annual Uber Cash (split into monthly $15 credits for U.S. rides and Uber Eats orders plus a $20 bonus in December).
Enrollment is required for select benefits.
Finally, cardholders will enjoy enhanced earning rates on many travel purchases:
5 points per dollar on flights booked directly with airlines or with Amex Travel (on up to $500,000 on these purchases per calendar year).
5 points per dollar on prepaid hotels booked with Amex Travel.
1 point per dollar on other eligible purchases.
And while the current welcome offer provides solid value, be sure to check the CardMatch Tool to see if you can receive an even higher one (offers are targeted and subject to change at any time).
Read our review of the American Express Platinum Card for more information.
Official application link: The Platinum Card® from American Express with 80,000 points after you spend $6,000 on purchases in the first six months of card membership.
The American Express Green Card
The American Express Green Card provides a compelling offering in the mid-tier travel category. With 3 points per dollar on broader travel, restaurants and transit as well as annual statement credits for Clear and LoungeBuddy that more than cover its annual fee, the Green from Amex is a card that modern travelers should consider.
The earning rates and benefits of the American Express Green Card will be most attractive to young professionals and millennials (or millennials at heart) who travel for work, pleasure or both. The card earns 3 Membership Rewards points per dollar on travel, restaurants and transit, so you’ll want to consider this card if a large chunk of your budget goes toward these categories.
The Amex Green also offers annual up to $189 Clear Plus and up to $100 LoungeBuddy statement credits that can more than offset the $150 annual fee (see rates and fees) while making your time in the airport more efficient and relaxing. If you can utilize these statement credits, the card can easily be a worthwhile addition to your purse or wallet.
Read our review of the Amex Green for more information.
Official application link: Amex Green with 60,000 Membership Rewards points after you spend $3,000 on purchases in your first six months of card membership. Also, get 20% back on eligible travel and transit purchases in your first six months to earn up to $200 back.
Capital One Venture X Rewards Credit Card
The Venture X card is Capital One’s premium rewards card and offers great earning rates and incredible perks.
Aside from a hefty welcome bonus of 75,000 miles after spending $4,000 on purchases in the first three months – worth about $1,388 according to our valuations thanks to Capital One’s excellent airline and hotel transfer partners – the card gives members up to $300 back in statement credits annually for bookings made through Capital One Travel and 10,000 bonus miles every account anniversary, starting on their first anniversary (worth $100 toward travel, or $185 by our valuations).
As for earning rates, the Venture X racks up 10 miles per dollar on hotels and car rentals booked via Capital One Travel, 5 miles per dollar on flights booked via Capital One Travel, and an unlimited 2 miles per dollar on everything else.
Frequent travelers will also enjoy taking advantage of access to Capital One’s developing network of airport lounges as well as the ability to enroll for Priority Pass membership for entry into more than 1,300 lounge locations worldwide (though this no longer includes participating restaurants). It also added the ability to access Plaza Premium lounges worldwide in 2022 and launched The Premier Collection in 2023, giving cardmembers on-property perks at a curated set of luxury hotels.
Read our review of the Capital One Venture X card for more information.
Official application link: Capital One Venture X Rewards Credit Card with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
Capital One Venture Rewards Credit Card
The Venture Rewards packs a pretty good punch for a mid-tier credit card. It earns a flat 2 miles per dollar spent on all purchases worldwide, but you can earn 5 miles per dollar on hotels and car rentals booked through Capital One Travel. The miles you earn with this card can be transferred to Capital One’s 17 airline and three hotel partners or redeemed through the Capital One Travel portal.
The card stands out for offering an application fee credit for Global Entry or TSA PreCheck every four years; many other cards that offer this benefit have annual fees of $400 or more. This TSA PreCheck/Global Entry application fee credit alone is worth up to $100. When making everyday purchases, you may also get Warranty Manager Service which can be used for extended warranty protection. The Venture Rewards card doesn’t impose foreign transaction fees, so you can use the card overseas without accumulating extra charges.
Read our review of the Capital One Venture Rewards Card for more information.
Official application link: Capital One Venture Rewards Credit Card with 75,000 bonus miles after you spend $4,000 on purchases in the first three months from account opening.
Chase Sapphire Reserve
This is one of the best premium credit cards available.
It earns a whopping 10 points per dollar on Lyft (through March 2025), Chase Dining booked through Ultimate Rewards, and hotel and car rental purchases through the Ultimate Rewards Travel portal. Cardholders also earn 5 points per dollar on airline travel booked through the Ultimate Rewards Travel portal, 3 points per dollar on travel (after using the $300 travel credit) and dining, and 1 point per dollar on everything else.
Chase defines travel and dining quite broadly, including everything from parking fees to Airbnb stays and food delivery orders. Perks of the card include a $300 annual travel credit, Priority Pass membership, a $5 monthly DoorDash in-app credit (through December 2024), a complimentary DashPass membership and an impressive array of travel protections.
Read our review of the Chase Sapphire Reserve for more information.
Official application link: Chase Sapphire Reserve with 60,000 points after you spend $4,000 on purchases in the first three months of card membership.
Chase Sapphire Preferred Card
If you can’t justify a high annual fee or want a solid card with an appealing set of perks, the Chase Sapphire Preferred is an ideal fit. It earns 5 points per dollar on all travel purchased through Chase Ultimate Rewards; 3 points per dollar on dining, including eligible delivery services, takeout and dining out; 3 points per dollar on select streaming services; 3 points per dollar on online grocery purchases (excluding Target, Walmart and wholesale clubs); 2 points per dollar on all other travel; and 1 point per dollar on all other purchases.
The points you earn with this card can be transferred to Chase’s airline and hotel partners or redeemed for 1.25 cents each through the Chase Ultimate Rewards portal. Benefits include a $50 annual credit on hotel stays purchased through Ultimate Rewards, at least 12 months of DashPass membership (when activated by Dec. 31, 2024), primary rental car coverage, up to $500 in trip delay reimbursement if you’re delayed more than 12 hours or overnight, up to $10,000 in trip cancellation and interruption insurance and up to $100 per day for up to five days in baggage delay reimbursement if your bag is delayed more than six hours.
Read our review of the Chase Sapphire Preferred for more information.
Official application link: Chase Sapphire Preferred with 60,000 points after you spend $4,000 on purchases in the first three months from account opening.
American Express® Gold Card
The Amex Gold card is a favorite of many TPG staffers thanks (in large part) to its terrific earning rates:
4 points per dollar on dining at restaurants (including takeout and delivery in the U.S.)
4 points per dollar at U.S. supermarkets on up to $25,000 in purchases per calendar year (1 point per dollar after that).
3 points per dollar on flights booked directly with airlines or through Amex Travel.
1 point per dollar on all other eligible purchases.
The card also offers up to $120 in annual credit for Uber rides and Uber Eats purchases and up to $120 in statement credits for select dining purchases (enrollment is required for select benefits) — all for a manageable annual fee of $250 (see rates and fees)
And while it’s not providing a limited-time bonus for new cardmembers, you can often find elevated welcome offers through the CardMatch tool. The card currently features a public welcome offer of 60,000 points after you spend $4,000 on eligible purchases within the first six months of card membership. However, some new customers can earn a 75,000-point or even 90,000-point welcome offer via the CardMatch tool after meeting the same minimum spending requirements. Note that these elevated offers are targeted and subject to change at any time.
Alternatively, you can refer a friend through the Amex referral program — and when your friend applies for a new account by June 7, you can earn an additional +5 rewards per dollar (as either points or cash back, depending on the card) on eligible U.S. supermarket purchases for three months after they’re approved (starting from the first date the referred friend’s account is opened), on up to $25,000.
Additionally, new applicants for the Amex Gold through a referral link will be eligible for an up to $200 statement credit after reaching minimum spending requirements, on top of that card’s usual welcome offer.
Read our review of the American Express Gold Card for more information.
Official application link: American Express® Gold Card with 60,000 points after you spend $4,000 in the first six months of card membership.
Southwest personal cards
All three personal of Southwest’s personal credit cards — the Rapid Rewards Plus, Rapid Rewards Premier and Rapid Rewards Priority — are currently sporting identical welcome offers: 60,000 bonus points plus a 30% off promo code after spending $3,000 on purchases in the first three months from account opening. This is the first time Southwest has offered a promo code as part of a sign-up bonus on a credit card.
The code will appear directly in your Southwest.com account within eight weeks of meeting the spending requirement. It can be used — only once — on a single one-way or round-trip Wanna Get Away, Wanna Get Away Plus, Anytime and Business Select fare, and is available for use until October 31, 2024.
Given it is a single-use promo code, it would be best to save this for a more expensive ticket. You’ll get the biggest savings when using the code for round-trip travel and/or during peak travel periods like the summer or the holidays.
Read more about the three cards and this limited-time offer.
Official application link: Southwest Rapid Rewards Plus
Official application link: Southwest Rapid Rewards Premier
Official application link: Southwest Rapid Rewards Priority
United Club Infinite Card
The United Club Infinite Card is the ideal card for United lounge access — bar none.
The United Club Infinite Card’s $525 annual fee sounds high until you factor in the United Club membership included with the card. Membership normally costs $650 per year for non-elite members.
In addition, one of the primary disadvantages of many airline credit cards is a low return on spending, even on branded purchases, as most airline cards only offer 2 or 3 points per dollar on airline purchases. But the United Club Infinite Card sets a new standard with an impressive 4 points per dollar on United purchases.
If you spend thousands of dollars on United flights each year, the United Club Infinite Card is worth considering.
Read our review of the United Club Infinite for more information.
Official application link: United Club Infinite with 80,000 bonus miles and 1,000 Premier qualifying points (PQP) after you spend $5,000 on purchases in the first three months from account opening. Offer ends Aug. 9.
IHG Rewards Premier Business Card
New applicants for the IHG Rewards Premier Business card can earn 165,000 bonus points after spending $3,000 on purchases within three months from account opening.
Your bonus will come in the form of IHG points, which TPG values at half a cent each. Thus, this bonus is worth $825.
Generally speaking, you won’t get fantastic earning rates on most hotel credit cards — especially on broad categories like dining and groceries. That said, the IHG Premier Business card could be a solid option, especially at participating IHG properties.
When you use your card at IHG hotels and resorts, you’ll earn 10 points per dollar spent on your stay. This is in addition to the 10 base points that all IHG One Rewards members accrue at most participating brands. And since you have automatic Platinum Elite status with the card, that’ll give you another 60% bonus on top of the base points. When combined, that translates to a total of 26 points per dollar spent on most IHG stays — or a 13% return on spending, based on TPG’s valuations.
Beyond IHG purchases, cardholders of the IHG Premier Business will earn points at the following rates:
5 points per dollar spent on travel, dining and gas purchases.
5 points per dollar in select business categories, such as social media and search engine advertising and at office supply stores.
3 points per dollar spent on all other purchases.
You’ll also receive a free night certificate (worth up to 40,000 points) every year when you renew your card and enjoy your fourth night free on award stays of four nights (or longer)
Read our full review of the IHG Rewards Premier Business for more information.
Official application link: IHG Rewards Premier Business card with 165,000 bonus points after spending $3,000 on purchases within three months from account opening.
Hilton Honors American Express Surpass® Card
The Hilton Honors American Express Surpass® Card provides solid earnings at Hilton properties and automatic Hilton Gold elite status, which offers complimentary breakfast, increased earnings and space-available upgrades when you stay at Hilton properties.
Hilton Honors Gold status is one of the best mid-tier hotel loyalty statuses you can obtain. As a Hilton Gold elite member, you’ll get complimentary breakfast, space-available room upgrades and improved earnings when staying at Hilton brands. Luckily, you can easily earn and maintain Hilton Gold status since it is an automatic perk of the Hilton Honors American Express Surpass Card.
The Hilton Surpass card is an ideal choice for those who stay at Hilton properties often and want a cobranded credit card with a modest annual fee and valuable perks.
Read our full review of the Hilton Surpass for more information.
Official application link: Hilton Surpass with 130,000 bonus points and a free night reward after spending $2,000 in purchases on the card in the first three months of cardmembership. Offer ends July 19.
*Bonus offer value is based on TPG valuations and not provided by issuers.
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
For rates and fees of the Amex Platinum card, click here. For rates and fees of the Amex Business Platinum card, click here. For rates and fees of the Amex Gold card, click here.
For rates and fees of the Amex Green card, click here.
For rates and fees of the Hilton Honors Amex Surpass, click here.
Additional reporting by Ryan Wilcox and Eric Rosen.
Memorial Day weekend has passed, and the summer travel season is here. The Transportation Security Administration screened nearly 10 million passengers over the four-day holiday weekend, including a post-pandemic daily record of more than 2.7 million travelers on Friday, May 26.
As millions of travelers take trips by plane, cruise ship or road this summer, we’ve gathered some essential travel tips on how best to book and enjoy your journeys.
Whether you’re an occasional road-tripper or a frequent globe-trotter, these TPG-backed top travel tips can help you avoid unnecessary headaches when you spend time away from home.
WESTEND61/GETTY IMAGES
How to find travel deals
Flexibility is key when it comes to finding cheap airfare any time of year.
Changing your arrival or departure date by a single day can save you hundreds of dollars on airfare. If you don’t mind altering your family’s plans slightly, consider booking travel directly on major holidays like the Fourth of July, Thanksgiving and Christmas for cheaper prices and thinner airport crowds.
One of our favorite tools at TPG for finding deals is Google Flights. You can use the search field to find the cheapest (or best) flights. Google will also give you a historical view of how prices have ranged and will even send you email alerts if fares jump or drop on specific routes you’ve selected.
It also has some fun tools you can use to find a cheap destination. By clicking the “Explore” button on the sidebar and putting your departure airport, Google will give you a map or list view of the most wallet-friendly destinations.
However, Google isn’t the only place to find deals: TPG publishes regular deal alerts. You can sign up for Twitter alerts and subscribe to our daily newsletter for the latest deals news.
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Don’t sleep on mileage awards, either. If you’ve been hoarding miles during the pandemic, it’s time to spend them. Cash prices are high, so it can be a good time to burn those miles.
No matter how much you think you know about redeeming miles for flights, there are always new tips and tricks for turning those earnings into dream trips. Turn to TPG for guidance on sweet spots for redemptions. Sites like ExpertFlyer (part of Red Ventures, like TPG) supply additional redemption ideas or even business class upgrade inventory.
You may even want to consult a travel agent to get access to special deals that aren’t available anywhere else. Travel agents can sometimes get you extra perks at hotels or even cheaper business-class airfare to your dream destination.
Be your own best advocate
Since there are air traffic controller and pilot shortages, airports struggling with staffing in some areas and little room for error in the system these days, travelers have to be their own best advocates.
There are ways to get ahead of any possible travel nightmares.
First, be smart when booking. Try to find a nonstop flight rather than one with connections, even if it costs a little more. You’ll eliminate the risk of missing connections and lessen the chance of having your luggage go in a different direction than you during a transfer.
You could also take one of the first flights of the day, as those are least likely to face afternoon thunderstorms and most likely to depart on time. Read our article 5 reasons to book the first flight of the day for all the data.
Related: Your flight is canceled or delayed – here’s what you should do next
Download your airline’s mobile app to keep track of potential flight delays in real time. The airline app is a secret weapon in case things go wrong. Not only will you know when boarding starts, but you’ll also learn of any delays first. Some airlines allow you to even rebook yourself in the app.
If your flight is canceled, you’ll want to beat everyone else on your flight who is also looking to get rebooked.
We recommend heading for the customer service desk (or lounge desk if you have access). You could also get on the phone with the airline or contact them via social media if there’s a delay. Sometimes, an airline’s Twitter representative will help you faster than a phone or in-person agent can. You have to use every tool at your disposal when things go south.
Many airlines also now have live chat capabilities to help navigate delays and cancellations.
I always have an alternate plan (or two) in the back of my mind in case a flight gets canceled or delayed. I also look to see what other airlines are flying the route I’m booked in case something goes awry. This way, I’ll know what to ask for if I need to be rebooked.
Also, save all the receipts for the expenses you incur during delays or cancellations. You’ll want excellent documentation in the case of meltdowns like the one Southwest passengers experienced during the holidays.
If you’re stuck at an airport for an extended period, seek out your airport’s secret quiet spaces for a brief escape from the travel chaos.
Get Global Entry and/or TSA PreCheck
One of our favorite ways to speed through the airport and avoid those summertime mega lines is via Trusted Traveler programs like TSA PreCheck and Global Entry.
Essentially, the government pre-screens you for security and thus you save a bit of time during your travels. You’ll need to apply ahead of time and pay a fee. The great news, however, is that many credit cards will give you a statement credit for these fees. TSA PreCheck is a $78 application fee for five years, and Global Entry is $100.
Related: 7 ways to get Global Entry, TSA PreCheck and/or Clear for free
TSA PreCheck allows you to speed through airport security without removing your shoes, laptops or liquids. With Global Entry, you can breeze through customs when you return from an international trip.
If you have the time, going for Global Entry rather than simply TSA PreCheck makes sense. Global Entry requires an interview with Customs and Border Patrol ahead of time, but once you’re approved, TSA PreCheck will be included.
Get Clear for the ultimate security trifecta
The other security tool we recommend you have in your travel toolbelt is Clear.
Related: Why you should get TSA PreCheck and Clear
The expedited security program allows you to bypass long security lines by using a separate lane at many airports. You’ll approach a kiosk where your identity is confirmed via an iris scan or fingerprint. A Clear employee will then escort you to the front of the security screening line.
A Clear membership combined with TSA PreCheck will enable you to go to even shorter lines at some airports with designated Clear/PreCheck lines. Clear isn’t perfect at all airports where it’s so popular, and there are now long lines (cough, Atlanta). However, it will still generally lead to shorter lines overall.
Related: Guide to using the Amex Platinum Clear benefit
Make copies of your important documents
Make digital and hard copies of all your important travel-related documents. Start by photographing your driver’s license, your state ID and/or your passport.
You should have copies of your IDs in your phone’s library in case you get separated from the actual document. Sometimes, it also helps in a pinch if you are asked for ID and didn’t bring the hard copy. For example, I was recently asked for my ID to enter One Vanderbilt to have dinner at the new American Express Centurion Lounge in New York. The receptionist would have accepted a photograph of the ID if I didn’t have the physical document.
TPG also recommends having an actual photocopy in a separate place. Editor Kristy Tolley says she stores a hard copy in a separate place from where she keeps her passport in case she loses a bag. “I also leave a copy of it at home if I’m traveling alone,” she said.
Check expiration dates
If you aren’t 100% certain of the expiration date of your passport and other travel documents, go check them now. Renewing passports takes time and some countries require six months of future passport validity to allow entry. Remember that child passports expire every five years, which can sneak up on you.
Related: How and when to renew your passport
Double-checking the expiration dates for your driver’s licenses and state IDs is also a good idea. Remember that TSA checks the expiration dates on your documents when they screen you for security. Don’t forget to check the expiration dates for your Trusted Traveler programs like Global Entry, Clear and TSA PreCheck, too. It can take a while to get a Global Entry interview appointment if you need one to renew.
Few things are worse than getting to the front of the security line and realizing the PreCheck mark is gone from your boarding pass.
Finally, check the entry requirements if you are traveling internationally. Some countries require visas that you must acquire before arrival.
Consider travel protection
When booking your travel, try to use a credit card that offers some built-in travel protection. Many credit cards, including TPG favorites like the Chase Sapphire Reserve or The Platinum Card® from American Express, offer this when you use those cards to purchase your airfare and similar.
Related: Best credit cards for trip delays and cancellations
If the coverage offered by your credit card isn’t enough, you might also want to purchase travel insurance. These policies can sometimes go beyond trip cancellations to cover things like medical evacuations. Warning: Read the fine print on any extra policies very carefully to ensure it covers the situations that matter the most to you.
Those who frequently travel abroad may want to consider purchasing an annual travel insurance policy instead of buying one on a trip-by-trip basis. Some TPG staffers purchase annual policies because of the cost savings for multiple trips. Some will find having an annual policy is easier than juggling separate policies or various credit card coverage terms and conditions.
Tips for your luggage
TPG has a ton of tips when it comes to luggage.
First and foremost, try to be on “team carry-on” whenever possible. If you don’t check baggage, you are much less likely to become separated from it. Many of us at TPG refuse to check luggage except under extreme circumstances.
Of course, other folks with families or those embarking on long journeys may still want to check bags. If that’s the case for you, you can still do many things to lessen the chance you get separated from your stuff. For example, make sure your luggage is in good working order, your contact info is attached, the bag is within the weight limits, you get to the airport early (but not too early) to check it and confirm your luggage is tagged to the right destination or connection.
Related: 7 tips to keep the airline from losing your luggage
After last year’s baggage delays and luggage disasters, we strongly suggest you put Apple AirTags (or the Android equivalent) into your luggage so you can track your items if they go missing.
If you check a bag, keep extra medicine or medical supplies in your carry-on bag in case your luggage goes missing or gets delayed. “As a diabetic, I keep a tiny emergency kit in my backpack with enough supplies to keep me going in an emergency,” TPG writer Tanner Saunders said.
Former TPG credit card writer Ryan Smith also offered words of advice regarding luggage. “The last items you pack in your carry-on will be most accessible, so use this for your passport, ID, ticket, headphones or whatever else you need during the trip,” he said. By making sure those items you’ll use most are easiest to reach, you’ll save yourself the hassle of having to dig around (or partially unpack) your bag to grab what you need.
Finally, be sure and get compensated if your bags are late or lost. Many airlines will give you points or even cash for delayed bags, and the government has rules on compensation if your bags are lost.
Staying safe on your journeys
From potentially getting robbed while on the road to experiencing bad weather or natural disasters while traveling, there are many scenarios that could arise when you’re away from home.
To mitigate those risks, pay attention to U.S. Department of State warnings about a destination you plan to visit and check local sources for the latest news from that country or region for additional context. Although the State Department tends to err on the side of caution with its warnings, it’s still best to be aware of what you may face during your trip.
Also, know the local number in case of emergencies. In many places, including Mexico and much of Europe, if you dial 9-1-1 on your cellphone, you will be connected to emergency services just like in the U.S. However, you should know the local emergency numbers of whichever country you visit.
Let people at home know your itinerary and stay in touch with them throughout your trip. If something goes amiss, at least someone will know where you’re supposed to be or the last place you visited.
If you’re arriving at night, contact your hotel or home-share host to ask about the best way to get there at the time you’re arriving and the safest ways to travel at night in that area.
Also, be strategic about how you check into a hotel. Some solo travelers request two keycards to imply someone else is on the trip. Giving thought to the hotel room’s security swing bar can also make sense, with some taking steps like placing a hand towel over it to make it harder to dislodge from the outside.
Some final tips
For cruisers, TPG principal cruise writer Gene Sloan suggests arriving in port at least a day in advance (if not several days ahead of time). This will eliminate the risk of missing your ship’s departure time and help you get acclimated to the local time zone.
When taking road trips to out-of-the-way destinations, go old school and bring paper maps with you or download offline maps from Google. Using a paper map or an offline version means you always have a way to navigate around your chosen destination, even if you lose cellular service.
One other note, you should reserve airport parking ahead of time during peak travel times. Some airport parking areas fill up fast around holidays, so reserving your spot ahead of time will save you from wasting time looking for a space when you need to catch a flight. You can also sometimes save by booking online in advance, too.
Bottom line
Whether you’re fresh to the world of traveling or a seasoned expert, you can always learn new tips to maximize your time away from home. The more research and preparation you do before your trip, the better your experience will be — especially if things go wrong, as they sometimes do.
Some of our favorite tools are deal alerts, Google Flights, sign-up bonuses and credit card rewards. Learn those tools and use them for better travel every time.
Remember that these days when things go wrong, you have to be your own best advocate. For more travel tips and tricks, read the stories below.
The average family carries a lot of financial stress. Most people have student loans, credit card debt, a mortgage, car loans, and sometimes even other forms of debt.
However, not many people have a budget.
According to a survey done by Gallup, 68% of households in the U.S. do not prepare a budget.
I believe budgets are extremely important and nearly everyone should have one. Rich, poor, middle-class, whatever you are, a budget will likely help improve your financial situation.
Some people think budgets are only for people living paycheck to paycheck, or those with no money.
WRONG!
Budgets are for everyone.
Yes, that means no matter how much money you make, you should probably have a budget. I recently read something that said couples who make $50,000 a month, on average, only save 4% of their income. FOUR PERCENT on a $50,000 monthly income? The majority of that monthly income went towards clothing, food, cars, and homes. I can’t even imagine how someone could blow through so much money each month.
This just proves my point, more people need a budget.
Budgeting may not be the most fun thing in the world, but it needs to be done. Budgeting can help you take control of your financial life, which can help reduce stress and let you reach your dreams.
Other budgeting-related articles you need to read:
Below are my tips on how to make a budget and creating a budget.
The positives of creating a budget.
Budgets help people manage their money better. It’s that simple.
Budgets are great, because they keep you mindful of your income and expenses. With a monthly budget, you will know exactly how much you can spend in a category each month, how much you have to work with, what spending areas need to be evaluated, among other things.
Budgets have helped people reach their goals, pay off debt, make more money, retire, and more.
Should a budget be electronic or on a piece of paper?
Everyone has a preference, so this depends on what will work best for you.
Pencil and paper can be great, but an electronic version (such as a spreadsheet, Mint, or Personal Capital) can help you easily make changes.
I suggest choosing whatever you are most comfortable with. It doesn’t matter how you keep your budget; it’s just important that you stick to it.
Side note: I recommend you check out Personal Capital. Personal Capital is similar to Mint.com, but much better. Personal Capital allows you to aggregate your financial accounts to easily see your financial situation. You can connect accounts; such as, your mortgage, bank accounts, credit card accounts, investment accounts, retirement accounts, and more. And it’s FREE.
You MUST track your income and spending.
What you want is to create a realistic budget. To show you where your money is coming from and where it is going, you need to gather all of your receipts, bank and credit card transactions, and so on.
Or, you could even take it a step further by tracking everything for the next month or two, this way you know you’re not missing any expenses. This means recording every single transaction with a note that tells you exactly what you bought (if a receipt is not itemized). Then, at the end of the month, you can evaluate your spending.
After one month of closely tracking your spending, I’m sure you’ll be shocked by your results. This is the best way to create a realistic budget, as you will truly see where your money is going, and this will help show you how much should be dedicated towards each category in your budget.
Plus, the shock from seeing exactly where your money is going will encourage you to be wiser with your spending.
Budget category: Income.
For the income part of your budget, it can be from varying sources. You can include income from your day job, rental properties, side jobs, passive income sources, and so on.
One common mistake is that many don’t realize their income can drastically fluctuate from month to month, even when you work the same hours every month or if you are paid salary. Due to this, you will want to be mindful of whether you are paid twice a month, every two weeks, once a week, etc. The difference of when you are paid can change the amount you make each month. Budgeting with a fluctuating income can be difficult, and in a future blog post I will go over it in more detail.
Also, I don’t think bonuses should be included in a person’s budget. Including them in your budget is not usually the best thing to do unless you are 100% certain you are receiving the bonus. I have heard of far too many people who have counted on bonuses only to be let down when it was less than anticipated. Your budget should be realistic, not a fairytale.
Related:
Budget category: Expenses.
Have you ever truly totaled your expenses?
When making a budget, many people only estimate their expenses. However, you actually should be taking your realistic expenses and putting them in your budget as your estimations may be way off.
Here are expenses you may include when creating a budget:
Home – House payment, rent, maintenance, utilities, insurance, property taxes, etc.
Car – This includes all car expenses such as your monthly car payment, gas, maintenance, insurance, license plate fees, and so on.
Television, cable, Netflix, Hulu, etc.
Cell phone.
Internet.
Food – This includes all groceries, eating out, snacks, etc. Seriously, sit down one day and add up your food expenses for the month before.
Clothing.
Entertainment – Entertainment can include many things, such as going to the movies, going out for drinks, concert tickets, sports, and so on.
Charity – If you regularly donate to charity, then this should be an area you budget for.
Savings funds – This can be for your retirement fund, wedding, travel, etc.
Taxes – If you are self-employed, then taxes will make up a large part of your budget.
Health insurance.
Miscellaneous – Pet expenses, fees, childcare, school, gifts, etc.
Related posts on creating a budget:
Keep your loved ones involved when creating a budget.
Even if only one person manages the family’s finances, the other person in the relationship should, at least, have somewhat of a clue. Conducting regular family money meetings is crucial to having a successful budget and meeting financial goals.
A budget doesn’t work if the other person doesn’t even know it exists!
Make changes when/if needed when creating a budget.
I recommend going over your budget on a regular basis. This may mean once a week, once a month, or something else. Do what feels right for you and what you think your situation calls for.
Many things can change in your budget. Your income may change, your expenses may change, or your goals may change. When something changes, you should adjust your budget to reflect that.
You may have noticed a recurring theme in this budget post, that you should be realistic about everything. Be realistic about what you make, what you spend, and if things need to be changed.
Do you believe in the power of creating a budget? Why or why not?
While they often don’t get the same hype as some of our favorite travel rewards cards, cash-back cards can hold their own when it comes to deserving a spot in your wallet. If you’ve skipped over them in the past, here’s why you should give them a chance.
Simple redemptions
Valuable travel redemptions are great, but finding them can take a lot of research.
With cash-back cards, you simply decide whether you want to receive your cash rewards through a statement credit or bank deposit, depending on the card issuer.
Related: Best cash-back cards
Flexible rewards
There’s no beating cash, which can cover expenses points and miles don’t (i.e., bills, food or tour tickets). And beyond travel, you can use your cash-back rewards to cover Christmas presents, a bridesmaid dress or a snazzy new suitcase.
Related: How to redeem cash-back rewards
Competitive earning
A commonly cited drawback of cash-back cards is that they don’t earn as much as travel rewards cards. That’s generally true, but the disparity isn’t as great as you may think.
Consider the earning potential of the Citi® Double Cash Card (see rates and fees)and the Capital One Venture Rewards Card. The Double Cash Card earns 2% back on purchases (1% when you buy and 1% when you pay), or 2 points per dollar spent on all purchases. Meanwhile, the Capital One Venture Rewards Card earns 2 miles per dollar on most purchases (with select bonuses via Capital One Travel). If you think travel rewards are always more valuable, you may assume it’s better to earn 2 Capital One miles than 2% cash back on your dollar.
But if you want to redeem your Capital One miles as a statement credit to cover your travel expenses, you’ll redeem them at a flat rate of 1 cent per mile. So the 2 miles you earn per dollar with your Venture are worth 2 cents, which is the same return you’ll get with the Citi Double Cash.
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Plus, the Citi® Double Cash doesn’t carry an annual fee, nor does it have restrictions around your redemption options. However, the Capital One Venture card has a $95 annual fee and a lower redemption rate (half a cent per mile) if you want to redeem your rewards for general cash back instead of travel.
It’s true that Capital One miles can be worth more when you maximize the program’s airline and hotel transfer partners. However, it takes time to find these high-value redemptions, and you may want to focus on a simpler rewards structure.
In this case, you’re much better off earning and redeeming cash back with your Double Cash and simply using it to cover anything you want.
Related: Cash back vs. travel rewards points
Bottom line
Don’t mistake cash-back cards’ simplicity for mediocrity. Your new favorite card may be the one that earns you cold hard cash.
Some of the largest banks call America home. These banks are backed by the Federal Deposit Insurance Corporation (FDIC) and offer a variety of products and services. If you prefer a big bank over regional banks or a smaller, community bank, you’ve come to the right place.
Below we’ve compiled a list of the largest banks in the U.S. Once you read through it and perform some of your own research, you should be able to choose a bank or two that meets your needs.
How to Measure Bank Size
First, let’s discuss how to measure the size of a bank. We can do so by looking at the number of customers, number of branches, and number of employees.
But perhaps the best way to measure bank size is by focusing on the total assets under management. This figure shows the actual size of a bank, regardless of how many employees, branches, or ATMs it has.
In our list of the largest banks in the U.S. below, you’ll find that we include each bank’s total assets so you can get a better idea of just how large it is.
Bank Services
We also thought it would be a great idea to briefly discuss how banks work and what they can do for you as a customer. Banks have been around since at least the 14th century. They offer a safe place for individuals and business owners to park their cash and work on various financial goals.
While every bank has their own unique lineup of services, most of them provide checking accounts, savings accounts, and loan services. Some go the extra mile with credit cards, wealth management services, and other conveniences.
Types of Banks
In addition, it’s wise to go over the types of banks at your disposal. The most common types of banks you’ll find include:
Retail banks: Retail banks serve the public and typically have branches and main offices. They provide a wide range of services, like checking and savings accounts, mortgage and loan services, auto financing, CDs, and individual retirement accounts (IRAs). Retail banks may be regional banks operating in various states.
Commercial banks: Also known as corporate banks, commercial banks gear their offerings to small business owners and larger corporate entities. In addition to the usual banking services, they may offer cash management, employer services, and commercial real estate services.
Investment banks: Investment banks are designed for corporate clients with complex needs, like mergers and acquisitions. These clients are large corporations, governments, and hedge funds.
Central banks: Central banks are not available to the public. Instead, they’re an independent institution that oversees the money supply and monetary policy in the country. The Federal Reserve Bank is the central bank in the U.S.
Banks vs. Credit Unions
While banks are quite popular, some customers use credit unions instead. While credit unions also offer banking services, like checking and savings accounts, they’re not for profit institutions that are managed by their customers or members.
Compared to banks, credit unions tend to deliver more personalized service. But they also provide fewer services and have fewer branches and ATMs. A credit union can make sense, depending on your unique goals.
20 Biggest Banks In The U.S.
Here’s an overview of the largest banks in the U.S.
1. JPMorgan Chase & Co.
Total Assets: $3.381 Trillion
Headquarters: New York City, New York
If you focus on consolidated assets, JPMorgan Chase earns the spot as the largest bank in the U.S. This investment bank is also a holding company for subsidiaries, including Chase Bank. Chase, which is J.P. Morgan’s consumer banking division, has more than 4,700 branches in the U.S. plus more than 30 branch locations abroad.
According to Chase, almost half of the households in the U.S. are Chase customers. It attracts digital savvy customers that value online banking and products with artificial intelligence (AI). In addition to consumer banking, JPMorgan Chase is a combined bank that offers commercial banking, asset and wealth management, and investment banking.
Chase offers some of the most popular cash back and travel credit cards that can earn you valuable rewards through their program, Chase Ultimate Rewards. Using these credit cards for everyday purchases can earn you travel points, cash back, and other benefits.
2. Bank of America Corp.
Total Assets: $2.440 Trillion
Headquarters: Charlotte, North Carolina
Bank of America is a multinational bank with nearly 66 million customers and small business clients across the globe. It has a few divisions, including Merrill, Bank of America Securities, and Bank of America Private Bank.
As a Bank of America customer, you can enjoy access to a wide variety of products and services as well as access to more than 4,000 branches and more than 17,000 ATMs.
Just like most big banks, Bank of America prides itself on a robust mobile app, the Zelle payment solution, and other intuitive digital tools. Its various service lines include consumer banking, corporate banking, credit cards, insurance, investment banking services, institutional banking, mortgage loans, private banking, private equity, and wealth management.
3. Citigroup
Total Assets: $1.720 Trillion
Headquarters: New York City, New York
Citigroup, which is widely known as Citi, is an investment bank and financial services firm. When Citigroup merged with Travelers Group in 1998, it became a major player in the financial space. Citibank, Citigroup’s retail banking division has more than 700 branches in the U.S. and over 1,800 branches outside the U.S.
Most of the U.S. bank branches are in Florida, California, New York, and Washington DC. Citibank manages over 138 million bank accounts and has 65,000 fee-free ATMs across the country. Over the years, it has earned high rankings for its digital money management tools, including one that shows customers a financial wellness score.
4. U.S. Bancorp
Total Assets: $582.25 Billion
Headquarters: Minneapolis, Minnesota
The parent company of U.S. Bank, Bancorp’s locations are mainly in the Midwest. It offers personal and business banking with more than 3,000 branches and 5,000 ATMs. Over the years, Bancorp has worked to become a responsible financial provider and earn a spot on the Ethisphere Institute’s World’s Most Ethical Companies list.
As a Bancorp customer, you can access information about your accounts through Google Home and Amazon Alexa. You may also download the handy mobile app to make mobile deposits and perform other services, like transactions via Zelle.
5. PNC Financial Services Group
Total Assets: $534.35 Billion
Headquarters: Pittsburgh, Pennsylvania
PNC is short for Pittsburgh National Corporation. PNC Financial Services is the bank holding company of PNC Bank, which has more than 2,000 branches across 21 states. It stands out among other large banks for its unique customer perks and products for individuals and business owners. The Virtual Wallet tool, for example, lets you manage your money online or on your mobile device.
You can keep your checking and savings accounts together or just stick to one type of account, depending on your particular needs. In addition to traditional banking services, PNC offers mortgages, home equity lines of credit, auto loans, personal loans and personal lines of credit, student loans, and student loan refinancing.
6. Wells Fargo
Total Assets: $1.71 Trillion
Headquarters: San Francisco, California
Wells Fargo made its debut in 1852 when it was first opened by investing partners, Henry Wells and William Fargo. It was initially designed as a bank and express delivery service for gold. Eventually, Wells Fargo expanded as a consumer bank to serve all types of customers with various banking needs. It is admired for its long list of offerings and the Wells Fargo mobile app that helps customers track their spending and simplify their bills.
While Wells Fargo has focused on consolidating and prioritizing digital banking services in recent years, it still has about 4,700 locations and more than 12,000 ATMs around the U.S.
In addition to personal and small business banking, Wells Fargo supports commercial banking, investing and wealth management, and investment banking.
7. Truist Financial Corporation
Total Assets: $532.08 Billion
Headquarters: Charlotte, North Carolina
Compared to the other large commercial banks on this list, Truist is fairly new. It was formed in 2019 as the result of one of the largest bank merger between BB&T and SunTrust.
Truist is made up of three major divisions, including Truist Bank, Truist Securities, and Truist Insurance Holdings. These divisions employ over 37,000 people that work in consumer and commercial banking, investment banking, mortgages, and insurance.
It offers a variety of noteworthy perks, such as no overdraft fees, a $100 negative balance buffer, and automatic upgrades. The bank also places a lot of emphasis on community involvement and giving back.
8. Goldman Sachs Group, Inc.
Total Assets: $501.91 Billion
Headquarters: New York City, New York
Goldman Sachs was founded in 1869 by Marcus Goldman, a German American shopkeeper. Its original purpose was to help merchants and small businesses with short-term funding. Eventually, Samuel Sachs joined Goldman in 1882. Today, Goldman Sachs has a reputation as a leading global investment banking, management, and securities firm.
In the fall of 2016, Marcus by Goldman Sachs, its online banking division made its debut and began to offer numerous financial products, like savings accounts, certificates of deposit, credit cards, and loans.
In addition to these offerings, Goldman Sachs provides asset management services, mutual funds, investment banking and management, prime brokerage, commodities, and commercial banking.
9. Charles Schwab Corporation
Total Assets: $407.90 Billion
Headquarters: San Francisco, California
Charles Schwab is a multinational financial services firm with a focus on investment accounts, such as individual retirement accounts (IRAs) and brokerage accounts.
You’ll find an extensive selection of funds with low expense ratios as well as commission-free stock and ETF trades. While there are over 360 Charles Schwab branches with financial consultants, you can take advantage of its services online.
Schwab also offers a high-yield checking account. Whether you’re new to investing or consider yourself a veteran, you can benefit from Charles Schwab.
10. TD Group U.S. Holdings
Total Assets: $405.22 Billion
Headquarters: Wilmington, Delaware
While TD Bank has roots in Canada, it’s been in the U.S. market since 2007 when it acquired Commerce Bancorp. There are more than 1,100 branches and 700 ATMs across fifteen U.S. states and Washington D.C.
TD Bank offers the typical lineup of banking products and services but is known for its branch convenience. Most branches have long hours, are open on the weekends, and provide curbside pickup for new debit cards.
If you prefer in-person banking, TD Bank is certainly worth exploring. Many of its accounts come with generous sign up bonuses and access to comprehensive online banking features, such as online bill pay, Zelle, and remote check deposit.
11. Capital One Financial
Total Assets: $388.44 Billion
Headquarters: McLean, Virginia
Since it was established in 1988, Capital One bank is one of the newer large banks on our list. In only a few decades, the bank has grown significantly, thanks to its credit card offerings in the early 90s.
Once 2016 came around, Capital One was named the third-largest credit card issuer in the U.S. These days, Capital One continues to offer credit cards as well as digital services through Capital One 360.
Capital One 360 stands out for its Capital One’s 360 Performance Savings account, which comes with no minimum opening deposit and no minimum balance requirements.
It also has a mobile banking app with mobile check deposit, customized alerts and notifications, Zelle, free credit score monitoring via CreditWise, and more. There are about 775 branches, 2,000 ATMs, and nearly 30 Capital One cafes.
12. Bank of New York Mellon
Total Assets: $365.10 Billion
Headquarters: New York City, New York
Bank of New York Mellon came about after a 2006 merger between Mellon Financial Corporation and The Bank of New York. The Bank of New York was originally founded in 1784 by Alexander Hamilton, the first Secretary of the Treasury of the U.S. Bank of New York Mellon is now one of the largest securities firms in the word.
It specializes in a number of solutions and services for corporations, insurance companies, banks, brokers, dealers, and other reputable clients in the financial industry. In addition, the bank offers private investment and wealth management services for wealthy clients.
13. State Street Corporation
Total Assets: $296.43 Billion
Headquarters: Boston, Massachusetts
State Street Corporation was founded in 1792 as a financial services and asset management company. It has more than 40,000 employees and a global presence in over 100 markets.
Its offerings include investment research and trading, investment management, and securities lending for clients, such as insurance companies, pension funds, and asset owners.
14. Citizens Financial Group
Total Assets: $226.53 Billion
Headquarters: Providence, Rhode Island
Citizens Financial Group, Inc. has been around since 1828. It owns Citizens Bank, its retail division and offers credit cards, deposit accounts, personal loans, student loans, refinancing, and a number of other financial services. Citizen Bank mainly operates in the Northeast and Midwest.
In addition to more than 2,700 ATMs, there are over 1,100 branches in New England states as well as Delaware, Michigan, Ohio, Pennsylvania, New York, and New Jersey. The bank provides extended call center hours, a streamlined online experience, and a highly rated mobile app.
15. Silicon Valley Bank
Total Assets: $211.82 Billion
Headquarters: Santa Clara, California
Silicon Valley Bank made its debut in 1983. Today, it serves as a full-service commercial bank for technology and life sciences companies. Aside from traditional banking services, Silicon Valley Bank offers foreign exchange, venture capital, and treasury management services.
It has supported innovation for several well-known tech companies, including Google and Facebook. Many people give it credit for establishing Silicon Valley.
16. Fifth Third Bank
Total Assets: $205.55 Billion
Headquarters: Cincinnati, Ohio
Fifth Third Bank is a subsidiary of Fifth Third Bancorp and known as one of the largest banks in the Midwest. It has approximately 1,100 branches that span across Ohio, Florida, Georgia, Kentucky, Illinois, Indiana, Michigan, North Carolina, Tennessee, and West Virginia.
As a customer, you can enjoy access to more than 50,000 ATMs across the country and no opening deposit requirements for checking and savings accounts.
In addition to deposit accounts, Fifth Third Bank financial institutions offer mortgages, auto financing, personal loans, insurance, and investing products. Products and services are available to business customers as well.
17. First Republic Bank
Total Assets: $197.91 Billion
Headquarters: San Francisco, California
First Republic Bank is a premier private bank with more than 80 branches across the country. Its vast lineup of products and services includes checking accounts, savings accounts, money market accounts, IRAs, CDs, and wealth management.
Business customers can take advantage of business loans, business lines of credit, commercial real estate loans, and small business loans. The bank focuses on philanthropy and constantly supports programs related to art and education.
18. Morgan Stanley
Total Assets: $191.35 Billion
Headquarters: New York City, New York
Morgan Stanley’s roots date back to 1935. Today, the bank is a reputable, multinational investment management and financial services company. It has over 700 locations in every state as well as Washington D.C.
Its investing division includes three portfolios, including the impact portfolio, market-tracking portfolio, and performance-seeking portfolio. Whether you’re a beginner investor or wealthy client, Morgan Stanley may be a solid pick.
19. KeyBank
Total Assets: $184.67 Billion
Headquarters: Cleveland, Ohio
KeyBank was founded in 1825 and is now considered a community bank with a presence in 15 states. It has more than 40,000 ATMs in its network and 1,000 full-service branches. The bank also partners with the AllPoint Network of over 40,000 ATMs nationwide.
Its standard services include checking accounts, savings accounts, home loans and mortgages, lines of credit, credit cards, investing, insurance, and debt consolidation. In 2021, KeyBank acquired several digital businesses including digital platform XUP Payments and GradFin, a student loan counseling fintech.
20. Ally Bank
Total Assets: $182.2 Billion
Headquarters: Sandy, UT
While it’s based in Utah, Ally Bank is an online only bank with a long list of digital banking solutions. Its deposit accounts come with no monthly maintenance fees or minimum balance requirements.
The bank also pays high yields on CDs and savings accounts than traditional banks with brick-and-mortar banks. As a customer, you can enjoy 24/7 customer services and access to more than 43,000 ATMs through the Allpoint network.
Bottom Line
As you can see, there are many large banks in the United States. Each one has its own unique perks and priorities. To choose the right bank, consider your location, needs, and preferences.
If you’re looking for personal banking services and prefer a digital platform, Goldman Sachs and its Marcus division may be the way to go. But if private wealth management is your top priority, you may be better off with Bank of New York Mellon. Best of luck in your search for the perfect large bank.
Largest Banks in the U.S. FAQs
What is a bank?
Put simply, a bank is a financial institution that can legally accept checking and savings deposits and distribute loans. Some banks also offer additional services like certificates of deposit (CDs), individual retirement accounts (IRAs) and wealth management.
What is the largest bank in the world?
The Industrial and Commercial Bank of China is the largest bank in the world. The bank’s assets add up to $4.324 Trillion.
What are the ten largest banks in the U.S.?
Ranked in total asset value, the ten largest banks in the U.S. include JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, U.S. Bancorp, PNC, Truist Bank, Goldman Sachs, Charles Schwab, and TD Group.
How do I choose a bank?
To choose the right bank, focus on what you’re looking for. For more personalized service, you might want to explore a community bank. But if you prefer branch locations across the country and a long list of offerings, one of the large banks on this list might be a better fit.
Is my money safe in a bank?
Your money is safe as long as the bank is insured by the Federal Deposit Insurance Corporation (FDIC). An FDIC-insured bank typically insures up to $250,000 per depositor. Note that you don’t have to purchase FDIC insurance. As long as you’re a customer at a bank that offers it, you’ll receive it automatically.
How does a commercial bank differ from a retail bank?
A commercial bank offers a variety of products and services to both individuals and businesses. Retail banks, on the other hand, focus their offerings to individual customers. If you own a business, you’d be better off with a commercial bank that can serve the financial needs of your organization.
Do online banks exist?
Absolutely! In today’s day and age, online banking is more popular than ever before, among larger banks and smaller banks. While some banks offer in-person and online services, other banks, like Ally Bank, solely operate online with no branch locations.
What are some other large banks not on this list?
Other big banks you might want to consider include First National Bank, Huntington Bank, Provident National Corporation, America Bank, and HSBC Bank USA.
Are you a Millennial or Gen-Xer that has contemplated investing but doesn’t know where to begin? Micro-investing apps are a way to get your feet wet and are designed to encourage the younger generation to start investing.
If you are new to or know little about micro-investing, this guide will give you the information you need to get started. It will cover the best micro-investing apps for Millennials and everything you should know about micro-investing including what it is, how it works, and how to choose an app.
What’s Ahead:
Overview of the best micro-investing apps for Millennials
Acorns
This is one of the first and most popular micro-investing apps around. Account portfolios range from conservative to aggressive. This app will recommend portfolios based on your age, the risk you are willing to take, and what age you anticipate you will retire. Acorns takes the hassle out of investing by providing a micro-investing service. With one click, you can get started with any amount and automatically invest it according to your risk tolerance level–no more worrying about saving up money for each separate investment.
And if that’s not enough, Acorns also rewards its customers while shopping at partner stores through their Found Money program; they offer cash back without all the work because you’ll have an extra boost in your portfolio every time you shop online or offline. Acorns makes it easy for anyone to start investing – even kids. You can open accounts on behalf of those under 18 years old and build them up as parents monitor progress from afar via their family plan option.
Acorns has some really fun and interactive educational resources for those who are new to micro-investing, too. No minimum deposit is needed, so you can start investing with just $5. You’ll also get a referral bonus when you refer someone else or find a job offer — Acorns will match your investments up to the first year in which they work there. In other words, it’s free money.
The fees for micro-investing with Acorns are based on the level of account that you sign up for. The monthly fees can be as low as $3 per month or as high as $5 per month. You can choose between Personal and Family account levels:
Personal – $3 per month gives you the benefits from personal services such as a checking account with a debit card and no account fees or ATM fees and the ability to earn up to 10% bonus investments.
Family – $5 a month, and the entire family can invest. You can add any number of kids with no extra fees and access exclusive offers, in addition to the benefits from the Personal account type.
You can sign up for this micro-investing app through their website or by downloading their app on a device that uses iOS or Android operating systems. As with other micro-investing apps, you provide information about yourself, create a username and password, pick the type of account you want to sign up for, fund your account, and begin investing. One drawback of Acorns is that fees can add up for a low-balance account (the relative expense ratio gets smaller as you invest more), and transferring to another provider will cost $50 per ETF.
Learn more about Acorns or read our full review.
Robinhood
Robinhood is a micro-investing app that lets you buy and sell stocks, ETFs, options, and cryptocurrencies with zero trading fees. It’s the best place to start investing online because it’s the only free investment app on the market.
Robinhood was created by a couple of engineers who wanted to make stock trading more accessible for everyone. They had no idea that their little side project would eventually become one of America’s most popular financial apps.
The app is available for iOS or Android devices as well as through a web browser. To sign up for an account, you must be 18, with a valid ID to pass the company’s Know Your Customer (KYC) process. Robinhood also provides $3 – $225 in free stock when you sign up through their mobile app on iOS or Android device or their website.
Robinhood does not offer multiple account types to choose from but doesn’t charge any commission fees. Hence, trades are always at a flat rate of $0 per trade, making it a viable option for newer investors. Note that if you decide to transfer out of Robinhood, you’ll pay $75 – otherwise, there are no fees.
Learn more about Robinhood or read our full review.
Betterment
This app is designed for hands-off Millennial investors. Betterment works similar to other apps, with multiple portfolio options and automatic rebalancing of your portfolio. Betterment is a low-cost, automated investing service that takes care of everything for you. You can invest with as little as $25 and get the help of a financial advisor when you want it. It’s a robo-advisor that offers many different types of investments including index funds and exchange traded funds (ETFs) so your money will be diversified across multiple asset classes to reduce risk.
Betterment was founded in 2008 by Jon Stein who wanted to make investing easy and accessible for everyone. He created an automated system where users could set up their account, choose what type of portfolio they wanted, and then let Betterment take care of the rest – automatically rebalancing every day to keep things evened out.
There are two types of Betterment accounts:
Betterment Digital – 0.25% annually of assets managed featuring no minimum requirements, with the option to purchase a financial advisor package. You receive free automatic rebalancing of your portfolio when it drifts 3% or higher.
Betterment Premium – 0.40% annually of assets managed, and you must maintain a balance of $100,000. In addition to Betterment Digital features, you receive unlimited access to certified financial planners by phone or email.
You can purchase a consultation with financial advisors with packages ranging from $199 to $299 for individuals with a Betterment Premium account.
Betterment makes it easy to get started with your investing. Signing up is quick and accessible through the mobile app or web-based browser, you can link an account for deposits via bank transfer, wire transfers are also available but not recommended due to fees (for example $25 on top of any other charges).
Once signed up Betterment will set up a portfolio that reflects your goals based on questions asked when signing in such as what level of risk do I want? Based on these responses they’ll design a personalized investment plan just for you.
Learn more about Betterment or read our full review.
Twine
This micro-investing app allows you to invest and reach financial goals with a spouse, partner, or friend. Unlike other micro-investing apps, the focus is placed on low-cost ETFs instead of micro shares. Funding your account is done through recurring or one-time deposits, and you need $100 in your account to begin investing, though you can start an investment account with $5.
Twine was founded with the mission of making small, smart investments in people’s futures. They’re a micro-investing company that allows you to set up financial goals and an expected timeframe for these goals so they can reach them quicker than if it were on your own.
To do this, Twine has created three portfolio types: conservative, aggressive and moderate; which are designed specifically based on how much money is needed when investing as well as what time frame someone needs their goal met by.
There are two ways to get started: one being merely setting up a user account online or through an iPhone app (iOS). You can also invite another person to invest alongside you via email invitation – meaning not only will both of your funds grow together but Twine will help you reach your goals faster.
Twine micro-investment accounts are charged either $0.25 per month for every $500 invested or 0.60% annually with no minimum.
The process of signing up is similar to other apps. You provide your information, set a financial goal, invite someone else to invest with you, and begin funding and investing while monitoring your progress along the way.
On the downside, the mobile app is only for iOS operating systems only. It is more costly than other micro-investing apps and lacks the features that most of these apps offer, such as funding options and the option of fractional shares.
Learn more about Twine or read our full review.
Stash
Stash makes it easy and affordable for anyone to utilize and open an account. With Stash, you have more freedom and flexibility than other micro-investing apps.
Stash lets you invest in as little or much as you want and pick the companies, organizations, or causes that you trust. As your holdings grow, so does your potential to invest in what you believe in.
Stash eliminates any fees, commissions, or transaction charges–and they’re always working on adding more stocks to their portfolio for even more possibilities. With the new Stock-Back debit card featuring rewards in stocks opposed to store credit points (which can be converted into cash), it’s just a smarter way to use money every day.
There are two tiers of accounts with Stash:
Stash Growth – $3 a month gives you access to the benefits of Stash Beginner plus Smart portfolio and additional personal features. Smart Portfolio is a Stash feature that builds a custom portfolio for you based on research and risk level.
Stash+ – $9 a month allows you to enjoy the benefits of Stash Growth with bonuses. You can open accounts for your kids (max two kids), receive $10,000 in life insurance, and access additional and exclusive Stock-Back card bonuses.
There are three options you can choose from to add money to your Stash account.
Set recurring deposits to your Stash account.
Round-up purchases are made with your linked debit card, and the difference is invested.
Smart-Stash is a feature where your spending and earnings are analyzed, and money is stashed based on this information. You can then set transfer amounts to $5, $10, or $25 max.
The signup process is easy and straight-forward. You answer a few questions, pick a plan, add money to your account, sign up for the banking services offered to receive the Stock-Back debit card, and begin investing. You have the option to create and track your goals using the Stash app.
One minor drawback is the fees, as with any micro-investing app, are the biggest drawback of Stash. The subscription fees per month can add up if you have a low balance. The annual average expense ratio is roughly .25%.
Learn more about Stash or read our full review.
Public
This is a micro-investing app that incorporates the use of the social networking community with investing. It uses social networking as the basis for swapping strategies and learning from others.
Public is the easiest way to invest. You can invest in stocks, ETFs, and crypto-all in one place with any company and get their take on new money, wrapping up your earnings neatly at monthly intervals so that you don’t have to worry about throwing away all of your cash on material things.
It’s like an investment buffet where all of your favorite individual stocks are united in one easy-to-manage account with no minimum balance requirements and commission fees. All you need is a slice of Public, some greasy fries (tip not included), and the best TV binge ever.
You only pay fees when purchasing shares. There are no membership levels, no account fees, and you can begin using your account when you sign up.
The signup process is easy and convenient. You can sign up through the mobile app available from the Apple Store or Google Play Store.
The biggest drawback of the app is the risk of following advice from strangers about strategy and investing.
Learn more about Public or read our full review.
SoFi Invest
No account minimum and you can start investing with $1? Sign me up!
SoFi (social finance) is a financial planning company formed in 2011 and offers various products, including micro-investing. SoFi allows you to trade online through their app when you want and what you want. This micro-investing app is designed for Millennials looking for a lot of perks.
SoFi Invest is perfect for newbies who want to be hands off without sacrificing returns. You’ll still have plenty of options though – if you’re more adventurous and want control, go ahead and customize how your fund performs by adjusting frequency, risk tolerance, investment view, holdings duration, and cash flow strategy.
With this money-saving feature the only thing that will cost you is an ACAT transfer fee when transferring outside funds into your share class account through an ACH bank-to-bank or wire payment method – seriously easy stuff for any price-sensitive investor out there.
There are no account or asset management fees, and you do not need a minimum account balance to get started.
There are two options for signing up with SoFi Investing:
SoFi Active Investing – Allows you to control what you invest in based on your preferences, including the risk level you are comfortable with. You have access to a community of micro investors like yourself, certified financial planners, and other valuable resources at no cost.
SoFi Automated Investing – This is a more hands-off approach allowing you to use an automated platform to build and manage your portfolio. You receive the same perks offered with SoFi Active without investing time in researching and managing your portfolio.
You can sign up for SoFi Investing using a desktop or their mobile app. You will be asked for basic information. The signup process, including creating your account and scheduling a deposit, takes about 2-5 minutes to complete. It takes 1-2 business days for funds from your deposit to post to your account after your account is approved.
On the downside, SoFi does not offer tax-loss harvesting, and it has a limited track record compared to other micro-investing providers.
Learn more about SoFi Invest or read our full review.
Stockpile
This is a micro-investing app designed for young beginner investors who need something simple to get started with investing. You can access this app through a web-based browser or a device using iOS or Android operating systems.
Stock options can be complicated, but Stockpile makes it easy. With their fractional shares, you’ll have an easier time growing your investment portfolio and don’t have to worry about commissions.
It’s a great option for kids who want to get started early with their own investing or do so on behalf of others as well. When you’re ready to buy the gift that every investor loves, they offer physical stocks in addition to gift cards plus support from their customer service team if you need any assistance along the way.
There are different ways to fund a Stockpile account, link your bank account, and redeem a gift card. You can connect your checking account to move money in and out of your Stockpile account free of charge or use your debit card for a 1.5% convenience fee. If you use your debit card to fund your account, it is done instantly. Using your checking account takes 3-5 business days.
Gift cards cost $2.99 for the first stock. Additional stocks are $.99 each. Purchasing gift cards with credit or debit have an additional fee of 3% of the gift card’s value. Physical plastic cards cost an additional fee ranging from $4.95 – $7.95, depending on the card’s value.
The cost to trade on Stockpile is $0.99 per buying/selling trade. There are no annual or account management fees associated with the account.
The process for opening a Stockpile micro-investing brokerage account is simple. You create an account by providing basic information, fund your account, and begin choosing from the available stocks and ETFs.
Despite the user-friendly interface and simplicity of this app, there are drawbacks. This includes limited account and investment options and minimal tools available to analyze and research stocks.
Learn more about Stockpile.
Summary of the best micro-investing apps for Millennials
App
Minimum to start
Unique features
Acorns
$0
Family plan includes a checking account, retirement account, and custodial accounts for children
Robinhood
$0
Invest in cryptocurrency
Betterment
$0
Tax-loss harvesting
Twine
$0
Shared savings and investment goals for couples
Stash
$0
Get “stock-back” on debit card purchases
Public
$0
Follow and engage with others a la social media, only with investments
SoFi Invest
$0
Ability to connect with Certified Financial Planners
Stockpile
$0
Buy stocks with any dollar amount
How we came up with our list of the best micro-investing apps for Millennials
When we were looking for apps to include on this list, there were a few things we wanted to focus on. Before you decide on an app, you need to compare different brokerages and what they have to offer. That said, we looked at apps that had strong reviews, were easy to navigate, and most of all, had little to no fees, including:
Withdrawal fees.
Cancellation fees.
Transaction or investment fees.
Account opening fees.
Monthly or annual fees.
Expense ratio fees.
You want to make sure that you know the actual cost of micro-investing apps and how fees are charged. This includes a flat rate or percentage of transactions.
What is a micro-investing app?
Micro-investing is a way to invest without needing a lot of money to get started. These apps are designed to get the younger generation involved with investing and overcome barriers that prevent Millennials from investing. The funds placed in these accounts are used to invest in fractional shares or ETFs.
Depending on the micro-investing app you select, you can link your debit card and have purchases that you make with the card rounded up to the next dollar then deposited into your account. You can also have automatic transfers of a specific amount placed in the account. A few apps will monitor and analyze your spending and earnings and set money aside that can be transferred to your account to purchase micro shares of ETFs or fractional shares of stock.
Why should you use a micro-investing app?
Micro-investing is a new platform when it comes to investing. However, it is gaining popularity among Millennials that don’t have a lot of money to invest. The main feature of this type of platform can invest micro amounts of cash. Other features are considered bonuses.
Here are other benefits of micro-investing:
Automated process including rebalancing portfolio and transfers of funds to a portfolio account.
Minimal management fees.
No minimum requirements to begin investing.
Some providers have an option for purchasing fractional shares.
Most apps allow you to manage your account from an iOS or Android device.
Why shouldn’t you use a micro-investing app?
If you’re a more advanced investor and you want more control over the individual stocks you invest in, a micro-investing app may not be the right option for you. Micro-investing apps are designed to make investing easy and accessible to newer investors (or investors who don’t want to deal with the hassle). That often comes at the cost of lacking some features more advanced investors would enjoy – like stock charts and the ability to do intense analysis.
Most important features of a micro-investing app
When you’re looking for an excellent micro-investing app, there a few key features you need to be aware of:
Good reviews
The first thing you’ll notice when you download the app is the number of customer reviews and how well the app is rated. It helps to look through what other customers are saying about the app before you decide on one. For example, some apps get buggy with new versions or newer phones.
Clean interface
The last thing you want when you’re trying to simplify your investing experience is a cluttered interface that makes investing confusing. Look at the screenshots of the app. Download it to play around with it. Watch videos of it on YouTube. Get a sense as to whether it will be easy for you to use before deciding.
Little to no cost
Most micro-investing apps make their money in ways that aren’t hitting you. Meaning, they might not pay an interest rate on your balance (and instead take that for themselves), or they might collect interchange fees when you use your debit card. Either way, micro-investing apps shouldn’t cost you an arm and a leg, so be sure to understand the pricing structure before you sign up.