Capital One Travel was initially only available on certain Capital One cards and, beginning today, is available for all Capital One Venture, Spark, Miles, Quicksilver, and Savor cardholders.
Savor, Quicksilver, Spark Cash, and Student cardholders will have access to Capital One Travel and now earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
Venture, VentureOne, Spark Miles, and Spark Miles Select cardholders will continue to earn unlimited 5X miles on hotels and rental cars booked through Capital One Travel.
Venture X cardholders will continue to earn unlimited 10X miles on hotels and rental cars and unlimited 5X miles on flights booked through Capital One Travel.
Signup for the Capital One Venture and get 75,000 miles when you spend $4,000 within the 3 months from card opening.
Note that the referral offer is showing the same offer. If you know someone with the card, ask them for a referral and get them credit. (No referrals or requests in the comments below.)
Card Details
$95 annual fee; fee is not waived the first year
Card earns 2x points everywhere (the equivalent of 2% everywhere)
Card earns 5x points on hotels and rental cars booked through Capital One Travel
Card earns 5x points per dollar on Turo car rentals through 5/16/23
No foreign transaction fees
Visa Signature benefits
Receive up to a $100 credit for Global Entry or TSA PreCheck
Our Verdict
We’ve seen increased signup offers of 60,000 or even 100,000, though the latter had a high $20,000 spend bonus and most people will consider this 75,000 offer easier/better, I think.
Points can be redeemed either as a travel credit to offset $750 in travel costs or you can get gift card redemptions in that amount. You can also transfer the miles to 12 travel partners that Capital One has. The Venture might also be interesting to some people as an everyday card.
We’ll add this offer to our list of best credit card signup bonuses. If you’re going to apply, it’s worth checking out these Things to Know about Capital One Credit Cards first. Notably, Capital One is known to pull all three credit bureaus for each application. Keep in mind, you can freeze your Experian or Transunion and limit the pulls to just two. Another issue is that they seem to be stricter with approvals than other card issuers, and they may also have a rule to only approve one card per six months (hard pull won’t even be done beyond that).
Capital One announced today a new partnership with Turo car rental service.
Venture X and Venture cardholders will earn bonus points when booking through the Turo app or on Turo.com. Valid May 17 2022 through May 16, 2023.
Venture X cardholders will earn 10X miles
Venture cardholders will earn 5X miles
Our Verdict
Nice additional perk for the Venture cards, especially Venture X. Capital One often releases these kinds of bonus points partnership offers. Hopefully this one ends up staying around for the long haul.
From the Mint team: Mint may be compensated if you click on the links to our issuer partners’ offers that appear in this article, including Chase. Our partners do not endorse, review or approve the content. Any links to Mint Partners were added after the creation of the posting. Mint Partners had no influence on the creation, direction or focus of this article unless otherwise specifically stated.
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Credit cards can be a great way to manage your cash flow and earn rewards for everyday purchases you already make. However, it only takes a few late or missed payments to drop your score from the top tiers down to the “average” or “fair” categories of credit scores.
Card issuers recognize that not everyone has stellar credit. Below, you can find a list of cards designed just for people with average credit. With one of these in your wallet and the right habits, including paying your card off in full every month by the due date, you could find yourself with an improved credit score! If you can commit to managing your cards well, consider one of these top cards.
QuicksilverOne from Capital One
Arguably the best card for people with average credit is the QuicksilverOne card from Capital One. This card offers unlimited 1.5% cash back on every purchase with a modest $39 annual fee. It takes just $2,600 in annual purchases to break-even on that fee, or $216.67 per month.
In addition to cash back, the card has some valuable benefits for purchases and travel. Those include an extended warranty on all eligible purchases, rental car damage coverage, and travel accident insurance. It also charges no foreign transaction fees.
Between the cash back and the benefits, this card offers big benefits over buying with cash or a debit card. Rewards are redeemable for a statement credit, gift cards, or by check.
USAA Rate Advantage Visa Platinum
USAA is one of the best financial institutions for military and veteran households. The USAA Rate Advantage Visa Platinum card is great for its low fees. It has no annual fee, no foreign transaction fee, and comes with the lowest interest rate available from USAA.
Active military families have unique needs and some special financial protections by law. USAA is an expert at dealing with those needs. For example, active duty customers get a special 4% SCRA rate. You can also pick a design that shows off your branch of the armed forces.
The card also features valuable purchase and travel benefits sometimes reserved for more premium cards. Those include rental car insurance, price protection, extended warranty protection, satisfaction guarantee coverage, travel accident insurance, baggage delay insurance, and more.
Capital One Platinum
The Platinum credit card from Capital One is a no-annual-fee card that automatically increases your credit line after making the first five monthly payments on time. It doesn’t offer cash back or travel rewards, but it does make for a low-cost credit card option.
Benefits include rental car coverage, travel accident insurance, and an automatic extended manufacturer’s warranty. These benefits are pretty good for a card with no annual fee.
Even without rewards, most people are better off buying with a credit card if they can pay it off in full each month. Like most cards, this one has $0 liability for fraud and can help you manage your cash flow by letting you choose when you pay it off, as long as it is before that monthly due date of course.
Credit One Bank Platinum Visa
CreditOne Bank offers two different versions of its Platinum card. Depending on your credit, you may qualify for the Rebuild Credit version or the standard Cash Back Rewards version. In either case, you have an opportunity to earn at least some cash back among other benefits.
If your credit fares on the better side of the average category, you may be approved for the version that offers 1% cash back on all purchases. If your credit qualifies you for the rebuilding credit version, you’ll earn 1% back on eligible purchases in categories like dining (1.1% back for some reason), gas, groceries, mobile phone, internet, and cable/satellite TV service. You find out which rewards you get when approved.
The card’s benefits are mostly around tracking and improving your credit score. While it leaves purchase and travel protections to be desired, it may be a good choice for people looking to improve their credit while earning rewards on eligible purchases
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Eric Rosenberg is a finance, travel, and technology writer in Ventura, California. He is a former bank manager and corporate finance and accounting professional who left his day job in 2016 to take his online side hustle full-time. He has in-depth experience writing about banking, credit cards, investing, and other financial topics. You can connect with him at Personal Profitability or EricRosenberg.com. More from Eric Rosenberg
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If you have bad credit, there is a light at the end of the tunnel. Rebuilding your credit doesn’t have to be hard. And, surprising to some, a credit card may be the perfect way to get started. It takes credit to build credit.
Opening a new credit card and building a perfect on-time payment history while keeping your balance low is the best way to rebuild credit for most people. The trick is always paying on-time and never spending more than you can afford to pay in full each month. If you can do stick to that plan, one of these credit cards is likely the best choice.
If you pay off a credit card in full by the due date, you won’t have to pay any interest, so I’m not adding interest rates below! You don’t have to use a card every month to build credit. If you want, you can use it just a few times a year for lunch or for a small subscription. Set it up for automatic payments and you’ll never miss a due date!
Capital One Secured Mastercard
The Secured Mastercard from Capital One is great for its low costs and ability to get access to a bigger credit line after just five months. The card requires a $49, $99, or $200 refundable deposit based on your credit score and the size of your credit line. If you make the first five monthly payments on time, you’ll get an automatic upgrade to a higher credit limit.
The card charges no annual fee. The card lets you pick your monthly due date to help you get back on track with a perfect payment history on a new account. Setting up automatic payments can help too.
It offers some great benefits including rental car coverage, travel accident insurance, automatic extended warranty for eligible purchases, and no foreign transaction fees. Those are excellent for a card with no annual fee.
Navy Federal Credit Union nRewards Secured Credit Card
If you are a military household or veteran, Navy Federal Credit Union is a great financial institution worth considering for a range of products. Those include the nRewards Secured card. This credit card has no annual fee, no balance transfer fee, no foreign transaction fee, and no cash advance fee. That no-fee combo is almost unheard of in the world of credit cards.
Cardholders earn 1 point per dollar spent. Points can be redeemed for cash back at a rate of 1 point = 1 cent. You can redeem points for a statement credit or transfer to a linked savings account. That’s like getting 1% cash back.
Navy Federal specializes in dealing with issues common for military families, such as interest rate limits that may apply for active duty and deployed members of the armed forces. It can be a great choice to get your credit going with the right foot forward.
OpenSky Secured Visa
The OpenSky Secured Visa is available with no credit check required. Even most cards for people with bad credit take a peek at that number before issuing a card. This one doesn’t pull your credit and offers credit lines from $200 to $3,000 with some non-credit factors used for approval.
The biggest downside is a $35 annual fee. With that cost in mind, it’s best to use this card if you can’t qualify for a card that doesn’t charge a fee and you want to get to work fixing that credit score right away. After a couple of years, it may be a good idea to replace it with another card that doesn’t charge an annual fee or offers rewards or better benefits with an annual fee. It also charges inactive account fees after 12 months.
If your credit is solidly in the bad credit range, OpenSky Secured Visa could be a good option to turn things around. It also offers high credit limits if you qualify. Just be careful with that annual fee while rebuilding your credit score.
Honorable mention: SelfLender
SelfLender isn’t a credit card, but it is a great service worth mentioning for people looking to rebuild their credit or establish credit for the first time. SelfLender is an online loan where you make a monthly payment that builds your credit, but it isn’t a traditional loan.
SelfLender does charge interest, but the bulk of your monthly payment is deposited into a savings account while payments are reported to all three credit bureaus. At the maturity date for your loan, you get the cash back. Accounts start with monthly payments of $25+ for 12 or 24 months. SelfLender charges a one-time $15 fee. It’s a fun and non-traditional path to fix your credit with no credit check required.
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Eric Rosenberg is a finance, travel, and technology writer in Ventura, California. He is a former bank manager and corporate finance and accounting professional who left his day job in 2016 to take his online side hustle full-time. He has in-depth experience writing about banking, credit cards, investing, and other financial topics. You can connect with him at Personal Profitability or EricRosenberg.com. More from Eric Rosenberg
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Banks make over $15 billion dollars a year in overdraft or non-sufficient funds fees for when customers try to withdraw more money than they have in their account. While these fees can be a big moneymaker for many banks, critics say that they are a regressive fee that targets lower-income consumers disproportionately. While there’s no denying that these types of fees can be big moneymakers for banks, some banks are starting to reduce or eliminate overdraft fees.
What Are Overdraft Fees?
Overdraft fees, also called non-sufficient funds (NSF) fees, happen when you try to make a purchase with your debit card for more than your available balance. If you have chosen to have overdraft coverage, the bank may allow the purchase to go through but then charge an overdraft fee. The amount of these fees vary by bank but is often in the $30-$40 range.
And keep in mind that you’ll get one of these overdraft fees for EVERY purchase that you make where your balance is less than the attempted charge. So if you don’t realize that your bank balance is lower than you think it is and make a series of small charges, you could be facing a $40 overdraft fee for each and every one of those charges. The fees can add up really quickly.
Why Do Banks Charge Overdraft Fees?
So why do banks charge these overdraft fees? The simple answer is that they charge them because they can. While it is often possible to choose not to sign up for your bank’s overdraft protection program, banks usually ask about that as part of the wave of documents that you have to fill out when you open your account. It can be easy to miss in the slew of paperwork that comes with opening an account.
Thankfully, more and more banks are starting to rethink their position on charging overdraft and NSF fees. Bank of America has announced that they are dropping their overdraft fee from $35 to $10, and Capital One has stated that they plan to remove overdraft fees entirely in 2022.
How to Avoid Overdraft Fees
One of the best ways to avoid overdraft fees is to opt out of your bank’s overdraft coverage. Most banks ask whether you want to sign up for overdraft coverage when you open your account. While it can be easy to miss in the mountains of paperwork that come with opening a new account, if you’re looking for it, it should be easy to decline. If you already have an account, contact your bank to see how you can opt out of overdraft coverage. You can also consider switching banks to one that doesn’t charge overdraft fees.
While it is a bit overly simplistic to say that another way to avoid overdraft fees is to not attempt to make purchases for more than your available balance, it is a good practice to be aware of your balance at all times. If you are not in the habit of regularly checking on your total balance, you can download Mint app and set up alerts to notify you when funds are low.
What To Do If You Get an Overdraft Fee on Your Account
If you do get an overdraft fee on your account, don’t despair — they aren’t always permanent. If this is the first overdraft fee that you’ve gotten, call up your bank and see if they will waive or reverse the fee. Many banks are willing to credit the amount of the fee back to your account, especially if you’ve been a longstanding customer and/or this is the first time it’s happened to you.
Depending on your bank, you may have better luck calling your local branch rather than the toll-free general customer service number. While it may be a bit embarrassing to have to mention to the teller that this happened to you, it can definitely be worth your time. Getting $40 back into your account for a 5 minute call is an hourly rate that’s worth doing!
The Bottom Line
If you’re looking to avoid overdraft fees, you have a couple of tools at your disposal. First of all, consider opting out of your bank’s overdraft protection program. That may mean that a charge you try to make will be declined, but in most cases that would be better than being hit with a $40 overdraft fee. Another option you have is to choose a bank that doesn’t charge these fees — it’s becoming more and more common. If you do get an overdraft fee, make sure to call up your bank and see if they will waive it as a courtesy. Most banks will do that for customers, especially if it’s your first one.
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Dan Miller is a freelance writer and founder of PointsWithACrew.com, a site that helps families to travel for free / cheap. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 kids. More from Dan Miller
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8 Ways to Avoid Overdraft Fees
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(Reposting 3/30/22 as the Virgin Red partner is now live)
A few bits of news out of Capital One today which we heard from our contact there:
The Venture X signup bonus of 100,000 + $200 will be valid until March 14th. We don’t know what will be beyond that.
In the coming weeks Virgin Red will be added as a new 1:1 miles transfer partner. Capital One is the first US credit card issuer to partner with Virgin Red, the new loyalty program for the Virgin family of brands. This move will bring the number of 1:1 transfer partners up to 16.
Additionally, Capital One is launching 20% bonus promotions with AeroMexico (Club Premier), Avianca (LifeMiles) and Wyndham Hotels & Resorts (Wyndham Rewards). These promotions begin March 1 and will be available through March 31.
Over the next few weeks, Capital One Travel will be rolling out the option to cancel a flight for any reason up to 24 hours before first scheduled departure. This option will have a small upfront fee and will get you back most of the ticket cost. Canceling only takes a few clicks, with no questions asked. We don’t have exact details on what the cost will be.
Forget making it Facebook official. Opening a joint bank account is the true way to show you’re committed.
OK, so not really. But for many married couples, long-term domestic partners, families and even roommates, joint bank accounts make budgeting and sharing bills easier to manage.
What Is a Joint Bank Account?
A joint bank account is much like any other account you open with your bank or credit union. You can use it to save money and earn interest, write checks and swipe a debit card to make payments, and even set it up for direct deposit and automatic bill pay.
So what’s different? You aren’t the only account holder. A joint account lets multiple people (typically two, though some banks allow up to four) act as account holders. That means they have equal rights to deposit — and withdraw — funds and will be held just as responsible as you for overdraft fees.
Joint accounts include checking and savings accounts. You might open a joint checking account to manage shared bills while a joint savings account makes sense for shared goals, like a house down payment, vacation or emergency fund.
Advantages of a Joint Bank Account
The main reason people open a joint bank account is because they are married or domestic partners with shared expenses and shared savings goals. Sharing a bank account might make you a little more disciplined with your own spending and can help you form a team mentality toward saving for specific goals.
But romantic partners aren’t the only ones who open joint bank accounts. Sometimes parents will add children, like college students or young teens just learning the ropes of money management, to their accounts. Those with aging parents might be added to their parents’ accounts to make it easier to take care of medical expenses, other bills or trips to the grocery store. If you trust your roommates enough to open an account just to pay bills like rent and utilities, it’s an easy way to take care of shared household expenses.
A huge pro of joint accounts is the financial power of combined money. Often, certain accounts will pay higher interest rates when you have more money in them. Reaching that total is easier with more than one contributor.
Finally, a typical account is insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. But each depositor in a joint account receives that insurance, so an account with two depositors is insured up to $500,000.
Disadvantages of Joint Bank Accounts
Bankers beware: Joint accounts have a lot of downsides, so be sure you trust your co-account owner on a personal level and a financial level before opening.
For starters, if a relationship or friendship ends poorly, the other co-account owner can drain the account before you are able to freeze the funds (or withdraw them yourself). If your relationship is on rocky ground, a joint bank account is not a good idea because a breakup could affect your credit score.
Some partners who do not see eye to eye on spending and saving should consider separate accounts to avoid fighting.
Pro Tip
Instead of combining all your savings into one account, create an account for monthly contributions toward shared bills and keep the rest of your finances separate.
Another major con of joint bank accounts is what can happen if your co-account owner mismanages the funds. They may be solely responsible for the act of overspending, but the bank will hold both of you responsible for the resulting overdraft fees — and you’ll also be out all that spent money.
And if your account is drained by the other person and you miss an important payment for a bill in your name (like rent or utilities) that is auto withdrawn from the account, this will affect your credit score, even if it wasn’t your fault.
Further, any funds in a joint bank account count toward both of your assets. That means, if one of the account holders files for bankruptcy, the money in the joint bank account is fair game for their creditors, even if you actually contributed most of that money.
Just as frustrating, shared funds with your child in college could count against them in terms of financial aid while an account held jointly with someone on Medicaid could disqualify them from receiving benefits.
Finally, joint bank accounts can get messy when one of the owners passes away. Because of “right of survivorship,” all that money goes to the other co-owner, even if you had intended for some of it to be distributed to other family, friends or organizations via your will.
Note: While most joint accounts have “right of survivorship,” you can find some with “tenants in common,” which allows you to get more specific with what should happen to funds if one person passes away.
And even if your intention is to pass on the money to the co-owner after death, the joint account owner will still potentially have to deal with inheritance taxes, depending on the amount in the bank account.
Pro Tip
Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.
How to Open a Joint Bank Account
If a joint bank account makes sense for you and your partner, parent, child or roommate, apply online or visit a branch of your chosen bank in person to open the account. The process is typically easy. Just be sure to bring:
Proof of identity, like your driver’s license or passport
Proof of address, like a utility bill
Your initial deposit (this can also be electronically procured from an existing account at another institution, if necessary)
You will need to fill out an application, and voila! You now co-own a joint bank account. You should receive a debit card, a checkbook and information regarding how the account works.
But before signing on the dotted line, ask a few important questions:
What happens if the relationship with the joint account holder ends? How do you freeze funds?
Can one person take out all the funds at once? Is it possible to limit withdrawals unless both/all parties are present?
Who is responsible for paying overdraft fees?
Considering online banking for your new joint bank account? Check out our favorite online savings and online checking accounts for 2022.
Alternatives to a Joint Bank Account
A joint account is not the only way to share funds with someone else. Consider one of these joint bank account alternatives if you’re on the fence:
Teen Checking Accounts
Some banks offer special accounts for teens. These often have no monthly maintenance fees and give parents a lot of oversight. Depending on the financial institution, you may be able to monitor the teen checking account online, place restrictions on ATM usage and debit card spending and connect it to your own online banking account for easy funding.
Just be sure to read the fine print about what happens when your teen ages out of the account.
Linked Accounts
Couples who want to share money easily but still keep finances their own may benefit from linking their accounts. As long as you bank at the same institution, you should be able to connect your accounts the same way you link your own checking and savings. This makes sending money back and forth easy and safe.
Money Transfer Apps
If you and your partner, friend or child do your banking with institutions that offer Zelle (even if they’re two different banks or credit unions), you can securely request and send money back and forth. Even if you don’t have Zelle through your bank, you can consider one of several popular money transfer apps to send and receive money. Just be cautious of fees.
Frequently Asked Questions (FAQs) About Joint Bank Accounts
Still have questions about opening a joint checking or savings account with a loved one? We’ve rounded up the answers to the questions our readers are most commonly asking.
Can You Have a Joint Bank Account If You’re Not Married?
While being married is the most common reason for opening a joint bank account, you can open a joint account with anyone. Roommates often open a joint account for shared expenses while parents might open a joint checking account or joint savings account to teach their children the basics of personal finance.
What Banks Let You Open a Joint Account Online?
Most major banks let you open an account online, including Chase, Wells Fargo, Bank of America and Capital One. If you prefer online banking, many top online banks, with no brick-and-mortar locations, also allow you to open a joint account.
Which Bank Is Best for a Joint Account?
In general, our recommendations for the best checking and savings accounts stand when opening a joint account. Because APYs and fees can change on a dime, our recommendations may change at times too. However, Ally, Capital One, Alliant and SoFi are consistent favorites for joint accounts.
How Do Taxes Work on a Joint Account?
If you and the other account holder are married and filing together, your taxes won’t be anymore complicated. Interest earned on the joint account is reported on your tax return. But if you’re filing separately or aren’t married, your tax situation becomes a little more complicated and can vary by state. It’s best to speak to a tax professional if you aren’t sure.
How Do You Open a Joint Account?
Opening a joint account is just as straightforward as opening your own checking or savings account. Any information you would typically need, like proof of identification and address, will just be required of every person on the account. You will also need to determine how you will fund the account initially.
How Do You Close a Joint Account?
Closing a joint bank account varies by financial institution. While some may require both joint account holders to be present, many others allow just one account holder to close it out. Keep this in mind when deciding if opening a joint account with someone makes sense.
Check with your specific financial institution regarding account closure.
Do Joint Accounts Affect Your Credit Score?
According to Experian, having joint checking accounts or joint savings accounts will not affect your credit score, even if the other person on the account has poor credit. Sharing a credit card in both your names, however, has a direct impact on your credit score.
Contributor Timothy Moore is a writer and editor in Cincinnati, Ohio. He focuses on banks, loans and insurance for The Penny Hoarder. His work has been featured on Debt.com, The Ladders, Glassdoor, WDW Magazine, Angi and The News Wheel.
Yes, we highly recommend using Two-Factor Authentication for your accounts. The Two-Factor Authentication process dramatically increases the security of your account by requiring more information than a standard password, such as verification codes.
Let’s look at how this two-factor authentication process works in practice. Here is a scenario in which we are logging into ‘Big Money Bank’, and our account is set up with Two-Factor Authentication security to keep out the baddies.
What Is Two-Factor Authentication (and Why Is It Important)?
How do I turn off Two-Factor Authentication?
Types of Authentication
Some banks take automatic control of Two-Factor Authentication, enabling it for you without requiring a request. Furthermore, some banks may not allow you to disable Two-Factor Authentication as it is necessary to protect your account integrity.
Something you have, such as a physical object that you possess. The most common example of this would be a key that you might use to unlock the front door of your home. Another example is a debit or credit card that has unique numbers—it is a physical object.
Something you know, such as a password, security key, or PIN. This is what we are most familiar with regarding online authentication. You may want to log into your bank account, so you will be required to enter a password—it is something within your brain.
Something you are, such as a fingerprint or facial scan. We are most familiar with this form of authentication when unlocking a mobile phone. If you have an iPhone or Android device, you have likely used your fingerprint to open it—it is something that is part of you.
Somewhere you are, such as within a specific WiFi network or GPS location. Businesses may use these methods to help authenticate you. If you are using your laptop on an internal business WiFi network, this may be used to establish your actions—it is a location.
If you followed our above example, you may have noticed something about the Two-Factor Authentication process. Even if a hacker was to figure out our password, they would be unable to log into our bank account because they don’t have access to our smartphone—this is the magical security of Two-Factor Authentication.
Two-Factor Authentication
With the feature enabled, it is more difficult for malicious users to gain access to your online accounts thanks to the improved authentication methods employed.
A password is one form of authentication. Two-Factor Authentication takes it one step further, requiring you to provide both a password and one other bit of information, such as a verification code texted to your smartphone. Two-Factor Authentication helps to increase overall account security.
How Does Two-Factor Authentication Work?
Generally, one of two things will happen, either a security key will be texted to your device, or an app on your smartphone will generate a unique code that you will be prompted to enter. Either way, physical access to your smartphone is needed to access your account. Source: thepennyhoarder.com
While we recommend prioritizing getting Two-Factor Authentication set up for your financial accounts, you’ll ideally want to set it up on any website that offers the extra security.
A Two-Factor Authentication Example
For example, you may be required to enter a password (something you know) and provide a fingerprint scan (something you are). This is a form of Two-Factor Authentication, and we’ll dive into exactly how it works in the next section.
We visit the website for Big Money Bank to access our account.
We enter our username and password (something we know) as usual.
Upon hitting enter, as long as our information is correct, Big Money Bank then texts a secret code to our smartphone.
We enter the secret code texted to our smartphone (something we have) on the website.
After entering the correct code, we are now logged into our account and we can access our information.
Improved Security With Two-Factor Authentication
If you have Two-Factor Authentication enabled for your online accounts, you will be prompted to enter a unique verification code upon login after your password. This code is generally sent via text message, email, or generated by a third-party authenticator app, such as Authy, on your smartphone or computer.
Utilizing Two-Factor Authentication is something that you should consider for all of your online accounts and important applications. However, protecting your financial information should be at the top of your priority list due to its intrinsically delicate nature.
Getty Images
Two-Factor Authentication for Online Banking
Online services and applications that utilize Two-Factor Authentication tend to have you use a password (something you know) and your smartphone (something you have).
To get you started, we want to provide you with instructions on setting up Two-Factor Authentication for Apple and Google accounts. With our Android and iOS smartphones and tablets revolving around these two platforms, it is essential to keep them secure.
We highly recommend that you enable Two-Factor Authentication for any of your online accounts that may support the feature. Some systems will text you an access code, email you an access code, or require you to use a mobile app that generates the security key. Either way, you are making it more difficult for malicious users to access your accounts.
Bank of America Two-Factor Authentication
Visit the Bank of America website and log in to your account.
In the top left corner of your screen, select Profile & Settings.
Under the Security heading, select Manage SafePass.
Next, click Add SafePass.
Check the box next to Add a Mobile Device and click Continue.
Follow the prompts to verify your mobile device.
Once completed, Two-Factor Authentication is set up for your account.
Chase Two-Factor Authentication
Visit the Chase website and log in to your account.
At the top of the screen, click on the Security & Privacy heading.
Under the Resources heading, there is a box entitled Ways You Can Be More Secure; within this box, select Add Extra Security When You Sign in Using a Browser.
Toggle the Extra Security at Sign-In option to On.
Once completed, Two-Factor Authentication is set up for your account.
Capital One Two-Factor Authentication
Capital One requires you to enable Two-Factor Authentication from within the bank’s mobile app for Android or iOS, so start by ensuring it is downloaded on your device.
Next, open and log in to the Capital One app using your account information.
In the bottom right corner, tap the Profile icon.
Under the AdditionalSecurity heading, tap on VerificationMethod.
Toggle the Mobile App Verification option to On.
Once completed, Two-Factor Authentication is set up for your account.
SoFi Two-Factor Authentication
Visit the SoFi website and log in to your account.
Next, select the My Preferences option.
Check the box next to Opt in to Two-Factor Authentication.
Follow the prompts to verify your mobile phone.
Once completed, Two-Factor Authentication is set up for your account.
What About Other Banks?
There are four types of authentication in practice, and we call these authentication factors. The authentication factors that we may use are as follows:
We are pretty familiar with the idea of ‘something you know’ as we use passwords all the time to access our accounts, but passwords can have their faults. We recommend looking at our guide on creating strong passwords to beef up your security.
Two-Factor Authentication for Other Accounts
To make things easier, we’ve briefly outlined how to enable Two-Factor Authentication with some of the most popular banks that offer the additional security feature. Simply follow the steps below to enable Two-Factor Authentication for your bank.
Pro Tip Michael Archambault is a senior writer with The Penny Hoarder specializing in technology.
For more information and assistance with Two-Factor Authentication, we recommend contacting your bank or institution using the phone number on the back of your credit or debit card. You can also visit your bank’s website and help section for more information.
Apple Two-Factor Authentication
The easiest way to set up Two-Factor Authentication for your Apple account is by using an iPhone or iPad.
Begin by opening the Settings app on your device.
Next, tap your name at the top of the screen, then Password & Security.
Tap Turn On Two-Factor Authentication, then tap Continue. If your device already says Two-Factor Authentication On, then you are already set up.
Enter your smartphone’s phone number, then tap Next.
Verify the code sent to your smartphone to complete the process.
Once completed, Two-Factor Authentication is set up for your account.
Google Two-Factor Authentication
Visit the Google website.
Click on your user icon or profile photo in the upper right corner.
Select Manage Your Google Account from the drop-down menu.
On the right, choose Security.
Scroll down under the Signing in to Google heading and click on 2-Step Verification. If it already says On, then you are already set up.
Verify your password if prompted.
Click the Get Started button and follow the on-screen prompts.
Once completed, Two-Factor Authentication is set up for your account.
Frequently Asked Questions (FAQs)
If you are unsure whether the security feature is set up for your account, it is best to contact the company your account is with and enquire about Two-Factor Authentication.
Going one step further, after we discuss what exactly Two-Factor Authentication is and why it’s essential, we’ll highlight how to enable it for some of your online accounts. Especially when it comes to online banking, Two-Factor Authentication can be a life-saver that helps increase account security, and protect your finances.
If you’ve taken even just a single moment to consider your online security, you have likely heard of the term Two-Factor Authentication (2FA) or perhaps Multi-Factor Authentication (MFA). While these two ideas may sound complex or even intimidating, we promise you that they aren’t, and we’ll break down exactly what they mean.
Quite simply, Two-Factor Authentication requires two forms of user authentication rather than a single form to allow you to access a digital system. By requiring two forms of authentication, account providers create more secure systems that aren’t easy to breach.
Let’s break down the term ‘Two-Factor Authentication.’ For starters, you already know what authentication is, and you’ve likely used a password to log into your online accounts. When we authenticate something, we provide information that helps prove that we should have legitimate access to something, such as an online bank account. How do I know if I have Two-Factor Authentication?
But, you may ask, how is my smartphone utilized as a second form of authentication? What is the difference between a password and Two-Factor Authentication?
Check out the 2FA Directory, which keeps a running record of what websites and apps currently support Two-Factor Authentication.
Most banks automatically enable Two-Factor Authentication, but some do not, so it is always best to manually check. Additionally, you may be able to enable more robust versions of Two-Factor Authentication to keep your account even more secure. Should I use Two-Factor Authentication? We highly recommend against turning off Two-Factor Authentication (seriously, don’t do it); it is a critical security feature that adds security to your accounts. If you need to turn off the feature, you’ll want to reach out to the company your account is with and inquire about the process.
Opening a savings account is a great way to protect your money and build your financial foundation.
You can use a savings account to achieve different financial goals, like creating an emergency fund or buying a home.
The best savings accounts feature higher-than-average interest rates and no monthly service fees. They also offer low or no minimum balance requirements.
According to the Federal Deposit Insurance Corporation (FDIC), 7.1 million Americans were “unbanked” in 2019, meaning no one in the household had a checking or savings account at a bank or credit union.
Whether this is your first time opening an account or maybe it’s just been a while, here is everything you need about how to open a savings account.
How to Open a Savings Account in Six Easy Steps
Each bank or credit union shares a few basic steps you need to follow to open your new account.
1. Choose a Financial Institution
Nearly every bank and credit union in the U.S. offers a savings account. You want to find one that meets your specific needs and financial goals.
Every savings account lets you make deposits and withdrawals. Any savings account you open at an FDIC-insured bank is protected for up to $250,000.
The average annual percentage yield (APY) for traditional savings accounts is about 0.06%. Some high-yield savings accounts offer APYs between 0.5% and 1.5%. But keep in mind that interest rates change depending on economic conditions.
The APY is how much interest you earn on your money each year.
A $5,000 account balance with a 0.05% APY earns $2.50 a year.
A $5,000 account balance with a 0.5% APY earns $25 a year.
A $5,000 account balance with a 1.5% APY earns $75 a year.
Some financial institutions may require you to meet a minimum balance requirement to qualify for a particular interest rate or avoid a fee.
If you already have a checking account, it’s usually easiest to open a savings account at the same financial institution.
Still, it pays to shop around and explore your options. You might find an online savings account with a higher interest rate than your current bank provides.
2. Decide How to Apply
Once you choose your bank or credit union, you need to decide how to apply for your new savings account.
The three most common ways to apply for an account are:
Online
Over the phone
In person
You might be able to submit an application by mail as well.
It generally takes 10 to 20 minutes to open a savings account online.
If this is your first time opening a savings account, you might want to apply in-person at a local branch.
3. Gather Your Identification and Documentation
Each banking institution requires personal identification and documentation to open a savings account.
Gather this information now to save time during the application process.
To open a savings account, you’ll need to provide your:
Driver’s license, government-issued identification or passport
Social Security number
Date of birth
Contact information, like your email address and phone number
Bank account number and routing number (if you’re using money from an existing account to fund your new account)
You usually need to reside in the U.S. to open a U.S. bank account.
A parent or guardian must accompany a person under 18 (19 in Nebraska) to open a bank account. You generally must bring two current forms of identification for the child.
Example of identification for a minor:
Birth certificate
Immunization record
Student ID
Social Security card
Be sure to ask your bank which forms of ID they accept for people under 18.
4. Choose a Single or Joint Account
Nearly all banks offer both individual accounts and joint accounts.
A joint account can be a good idea if you’re a parent opening an account for your child, or a married couple saving toward a common goal.
You’ll need the same documentation and information listed above for anyone else listed on the joint account.
5. Fund Your Account
Some banks require you to deposit a certain amount of money to get started. This minimum opening deposit can be as low as $1 or as much as $100 to $5,000.
Other banks don’t require a minimum opening deposit at all.
Accounts offering higher interest rates tend to have higher opening balance requirements.
If you open your account in person, you can use cash or a check to satisfy the minimum initial deposit.
If you open an account over the phone or online, you can use the routing and account number from an existing bank account to transfer funds.
Some banks may also let you fund your account by mailing a check or scheduling a wire transfer.
6. Submit Your Application
All set? It’s time to submit your application.
It can take two to five business days for a bank to verify your identity and give you access to your new account.
Once your account is established, you can set up online banking and download the bank’s mobile app. This on-the-go access makes it easy to check your balance, transfer money and monitor your account.
You can also set up direct deposit and schedule automatic recurring transfers.
Putting your savings on auto-pilot is the best way to save money consistently over time. It helps make saving money a habit instead of an afterthought.
Common Savings Account Fees and Expenses
Many banks offer savings accounts with low monthly fees, but the best accounts don’t charge any recurring fees at all.
If your savings account charges a monthly maintenance fee, it usually ranges between $4 to $5.
Many banks waive this fee if you meet certain criteria, such as setting up direct deposit or maintaining a minimum balance.
Pro Tip
Ask your bank or credit union if it offers special programs for students, veterans or other groups. These programs often waive initial deposit and minimum balance requirements on savings accounts.
You may also avoid monthly maintenance fees by holding your savings account and checking account at the same institution.
Avoiding a monthly fee is important because most savings accounts earn very low interest rates. A $4 to $5 monthly maintenance fee will completely wipe out any potential interest and erode the value of your money.
High-yield savings accounts tend to charge higher monthly fees than standard accounts. You can usually get this fee waived by maintaining a high account balance.
Some online-only savings accounts don’t charge recurring maintenance fees or minimum balances. However, they still carry excessive withdrawal fees like traditional banks.
Excessive Withdrawal Penalties and Fees
Until recently, a federal law known as Regulation D capped withdrawals from savings accounts to six per month.
This didn’t include withdrawals made in person, at ATMs or by mail. But it did include transfers to other accounts (including accounts at the same institution) and automatic transfers to pay bills.
In April 2020, the Federal Reserve issued a final rule to suspend the limit on savings account withdrawals.
However, some banks and credit unions still choose to impose a penalty for exceeding the usual six-withdrawals-per-month limit.
Some banks charge a fee for each withdrawal that exceeds the limit. These fees can range $5 to $15 for each additional transaction.
Other companies, such as Capital One and Citibank, won’t charge you a fee, but instead will deny any additional withdrawals for the month.
Make sure you understand any withdrawal penalties at your bank so you can avoid unexpected fees.
Incidental Fees
Banks and credit unions may charge account holders other fees, known as incidental fees. These fees are often used as a penalty to discourage certain consumer behaviors.
Make sure to read the terms and conditions of your account to see if your bank charges any of these fees, and if so, how much.
Here are some common incidental fees to look out for:
Overdraft fee
Stop payment fee
Paper statement fee
Inactivity fee
Wire transfer fee
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How to Pick the Best Savings Account
Not all savings accounts are created equal.
You want to find an account with few fees, easy access and a competitive interest rate.
A traditional savings account typically earns an APY between 0.01% and 0.06%.
Some high-yield online savings accounts earn interest rates between 0.5% and 1.5%. This can help your savings grow faster.
Of course, interest rates aren’t everything. You also want to consider what you’re saving for.
For example, if you want to build an emergency fund, it makes sense to open a savings account at the same bank where you have your checking account. This way you can quickly access your money if you get hit with an unexpected bill.
Linking your savings and checking account is also a good way to avoid overdraft fees. Another benefit is simplicity: You won’t have multiple accounts spread across different banks.
On the other hand, if you’re saving for the down payment on a house or a dream vacation, you might consider opening a high-yield savings account with an online bank. This way you can earn as much money as possible over time.
Questions to Ask Before Opening a Savings Account
It’s important to do your research if you want to find a good savings account.
Here are some important questions to consider before opening an account:
What are you saving for?
Does the account have a monthly fee?
Is there a way to avoid or reduce the monthly fee?
Is this an FDIC-insured bank or NCUA-insured credit union?
How much interest will you earn (what’s the APY)?
What is the opening deposit amount?
Do you want access to physical brick-and-mortar branch locations?
What online banking options are available?
How much money do you plan to keep in the account?
Frequently Asked Questions
How Much Money Do You Need to Open a Savings Account?
It depends.
Some banks don’t require any minimum deposit to open an account. Others charge as little as $1.
A high-yield savings account usually requires a bigger initial deposit. This can range from $100 to as much as $5,000.
Can You Open a Savings Account Online?
Yes. Brick-and-mortar banks let you open a new savings account on their website. This is often faster and easier than going to a physical bank or opening an account over the phone.
There’s also plenty of online-only banks to choose from.
Many online banks offer higher APYs and low fees. They tend to have accessible mobile apps that make it easy to manage your finances.
Online banks also carry the same FDIC deposit insurance as regular banks, so your money is protected up to $250,000.
What Is a Money Market Account?
Money market accounts and savings accounts share many similarities. For example, money market accounts offer the interest-earning power of a high-yield savings account.
The biggest difference between the two is a money market account usually comes with its own debit card and/or checkbook.
But unlike a checking account, it isn’t intended for everyday purchases.
You’re capped at six transactions a month, just like a savings account.
You can open a money market account at many traditional and online banks.
Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.
