New home sales in the US dropped in November as mortgage rates slowly retreated from their highest levels this year.
Sales of newly constructed homes dropped 12.2% in November to a seasonally adjusted annual rate of 590,000 from a revised rate of 672,000 in October, according to a joint report from the US Department of Housing and Urban Development and the Census Bureau. Sales were up just 1.4% from a year ago.
Affordability challenges, particularly with high mortgage rates, likely kept buyers on the sidelines. Typical mortgage rates reached their highest levels in 23 years – hitting 7.79% for a 30-year, fixed-rate loan – and have been coming down since.
At a the prevailing 6.5% interest rate, a family would need an income of nearly $130,000 to be able to afford to purchase the median-priced new home in the U.S., according to calculations from Sturtevant. The median household income in the U.S. is about $75,000.
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Check out these charts to see where home sales are trending in Madison.
November home sales dropped from October levels, posting the lowest median sales price in eight months, according to the RE/MAX National Housing Report for November 2023. The report revealed the number of homes for sale also fell slightly.
Indicative of the usual year-end slowdown, home sales in November dropped by 9.8% compared to October and declined 6.5% versus the same period last year. This decline can also be attributed to rising interest rates most of this year and last. Interest rates have decreased over the last two months, which could result in more activity in the market.
The number of homes for sale changed slightly – dropping 1.6% from October and declining 2.6% compared to November 2022.
Across the 52 metro areas surveyed, homes sold for a median price of $405,000, which was $5,000 less than in October but $13,000 higher than in November 2022. New listings, though up 1.5% year over year, were down 19.1% from October.
Key Findings:
Homes sold were on the market an average of 40 days–four days longer than in October and one day more than in November 2022.
Homes sold in November for an average of 99% of the listing price–the same as in October and up from 98% in November 2022.
Months’ supply of inventory in November was 2.6, larger than 2.3 in October and 2.5 in November 2022.
“Although November results are in line with trends we’ve seen this year, there’s reason to think 2024 could be more active, especially with prices and interest rates coming down a bit recently,” said Nick Bailey, President and CEO of RE/MAX, LLC. “When we look at the national picture, it’s a collection of local snapshots, each with different conditions. As the report shows, new listings in a few markets, including Omaha and Orlando, were up more than 25% year over year, while they decreased in others. So, while the results tell an overall story, the key for homebuyers and sellers is to work with a local real estate agent who can speak to the unique local conditions.”
Steve Silcock, Broker/Owner of RE/MAX Heritage in Clermont, FL, said, “November inventory in the Orlando area increased for the sixth month in a row to bump up months’ supply to a level not seen since January 2019. But we are still well below what many consider to be a balanced market, and median home prices are down slightly. However, December activity to date looks promising, especially in our retirement markets, and considering the recent drop in interest rates and the change in tone from the Federal Reserve, we are really looking forward to what we hope will be a strong and exciting 2024.”
New Listings
Of the 52 metro areas surveyed in November 2023, the number of newly listed homes was down 19.1% compared to October 2023 and up 1.5% compared to November 2022. The markets with the biggest decrease in year-over-year new listing percentage were Anchorage, AK, at -20.3%, Birmingham, AL, at -12.7%, and Honolulu at -11.5%. The markets with the biggest year-over-year increase in new listings percentage were Omaha, NE, at +33.2%, Burlington, VT, at +25.9%, and Orlando, FL, at +25.2%.
Closed Transactions
Of the 52 metro areas surveyed in November 2023, the overall number of home sales is down 9.8% compared to October 2023 and down 6.5% compared to November 2022. The markets with the biggest decrease in year-over-year sales percentage were Burlington, VT, at -19.1%, Portland, OR, at -17.1%, and Seattle at -15.9%. The markets with the biggest increase in year-over-year sales percentage were Manchester, NH, at +9.2%, Omaha, NE, at +6.5%, and Orlando, FL, at +4.9%.
Median Sales Price
In November 2023, the median of all 52 metro area sales prices was $405,000, down 1.2% compared to October 2023 and up 3.3% from November 2022. The markets with the biggest year-over-year decrease in median sales price were San Antonio, TX, at -5.7%, Coeur d’Alene, ID, at -3.7%, and New Orleans at -3.6%. The markets with the biggest year-over-year increase in median sales price were Trenton, NJ, at +15.5%, Des Moines, IA, at +15.1%, and San Diego at +12.7%.
Close-to-List Price Ratio
In November 2023, the average close-to-list price ratio of all 52 metro areas in the report was 99%, flat compared to October 2023, and up from 98% in November 2022. The close-to-list price ratio is calculated by the average value of the sales price divided by the list price for each transaction. When the number is above 100%, the home closed for more than the list price. If it’s less than 100%, the home sold for less than the list price. The metro areas with the lowest close-to-list price ratio had a three-way tie between Bozeman, MT, Coeur d’Alene, ID, and Miami at 95%. The metro areas with the highest close-to-list price ratios were Hartford, CT, at 103%, followed by a tie between San Francisco and Trenton, NJ, at 102%.
Days on Market
The average days on market for homes sold in November 2023 were 40, up four days compared to the average in October 2023 and up one day compared to November 2022. The metro areas with the lowest days on market were Baltimore at 13, Washington, DC, at 15, followed by a tie between Philadelphia and Trenton, NJ, at 16. The highest days on market averages were in Fayetteville, AR, at 86, Coeur d’Alene, ID, at 80, and Bozeman, MT, at 71. Days on market is the number of days between when a home is first listed in an MLS and a sales contract is signed.
Months’ Supply of Inventory
The number of homes for sale in November 2023 was down 1.6% from October 2023 and down 2.6% from November 2022. Based on the rate of home sales in November 2023, the month’s supply of inventory was 2.6, up compared to 2.3 in October 2023 and 2.5 in November 2022. In November 2023, the markets with the lowest months’ supply of inventory were Trenton, NJ, at 0.8 and Hartford, CT, at 1.0, followed by a tie between Manchester, NH, and Seattle at 1.1. The markets with the highest months’ supply of inventory were San Antonio at 5.3, followed by a tie between Bozeman, MT, and Miami at 4.8.
To read the full report, including more data, charts, and methodology, click here.
The astonishing pace of the recent drop in interest rates has raised some questions regarding sustainability and justification, but we can clear them up with a single chart.
The Federal Reserve doesn’t ultimately dictate rate levels, but it has a huge impact on how rates move. The Fed has been credited with fueling the improvements of the past 2 months, but it’s important to remember that credit couldn’t be given without justification from economic data.
Inflation is the most important part of the Fed’s “mandate” (a fancy word for job description). Before we get to the chart that explains it all, let’s take a look at a chart that adds to the confusion. It’s often repeated that Core year-over-year PCE is the Fed’s preferred metric for tracking the 2% inflation target. Here’s how it looks after the most recent update this week:
If this were the only way to view inflation, certainly the Fed would not yet be justified in cutting rates. To be fair, the Fed is not cutting rates. They are merely beginning to discuss what rate cut timing might look like if that line continues to fall as expected.
Still, some pundits say it’s too soon. The counterpoint is that year-over-year inflation numbers include many past months with much higher inflation, and those months are no longer indicative of current price patterns. Fortunately, we have month-over-month charts as well, and they tell a different story.
Monthly inflation numbers are already back at target levels. In fact, even if we use the last 6 months of core PCE, the annualized inflation rate would be right in line with the 2.0% target. Point being: as long as inflation doesn’t move quickly higher, the year-over-year numbers will fall to target levels as time passes.
Combine all of the above with the fact that the Fed wants to facilitate a soft landing for the economy and it’s hard to argue against a mere conversation about rate cuts in 2024. To be sure, several sectors are looking like they might appreciate a more moderate interest rate environment. Several monthly reports came out this week that speak to that fact.
Will the housing market respond to lower rates? Weekly data from the Mortgage Bankers Association holds clues. Both purchase and refi applications are back to their highest levels in months.
To get an idea of how much room we have for improvement, we can examine the exact same two metrics in a broader context.
From a market movement standpoint, this week was very uneventful. Mortgage rates held a very narrow range that was right in line with the lowest levels in 7 months. Whereas the Mortgage News Daily Index may have seemed low earlier in the week, Freddie Mac’s weekly rate index matched it almost perfectly when Thursday’s update came out. As always, keep in mind that an index level represents perfection and most loan scenarios are imperfect.
Looking ahead, the bond market is closed on Monday for Christmas and it closes early next Friday for New Years Weekend (following Monday is also closed). Collectively, this represents a slow, weird time of year for bonds that can generally be disregarded as “noise.” We won’t have a clean signal until the end of the first week of January after the big jobs report comes out and after bond traders are all back in the office.
Inside: Doordash is a popular side hustle that offers drivers the opportunity to make money by delivering food orders. This guide will teach you how to maximize your earnings by knowing the best times to Doordash.
If you’re seeking a way to increase your earnings using DoorDash, you’re in the right place, and I’m here to guide you every step of the way.
After joining DoorDash, my friend Susan transformed her spare time into a thriving side hustle, earning an extra $500 a week by delivering delectable meals. Her dedication not only boosted her income but also made her a favorite among customers, ensuring a steady stream of orders and generous tips.
But I’ll have you know that it’s not just about delivering food, it’s about understanding when and where to do it. Saturdays are a hotspot for orders, especially during dinner and late-night rushes. The good news doesn’t stop there! Thursday to Sunday are consistently reliable days for dashing.
Let’s talk about this exciting opportunity! Your DoorDash adventure awaits – let’s make it a prosperous one!
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Why is it Important to Choose the Best Times to DoorDash
Ever wondered why choosing the perfect time to dash can turbocharge your earnings as a Dasher? Well, let me spill the beans!
Picking those sweet spots when the demand is buzzing can lead to more generous tips and bonuses heading your way. It’s not just about the clock; it’s about tuning in to the rhythm of customer cravings and using that knowledge to your advantage.
This is such a hot topic DoorDash even released a guide to help you. 1
When is the Best Time to Doordash?
Alright, so, when’s the absolute best time to kick off your DoorDash adventure? From around 11 AM to 2 PM and 5 PM to 9 PM, the orders just keep pouring in. 1
And the icing on the cake? Customers tend to be more generous with their tips during these peak hours.
Also, don’t underestimate the magic of late-night deliveries, especially on those weekends when the town is buzzing. Those late-night munchies will easily become your new best friend.
Just remember… this will vary by city. So, plan your time where you spend 20% of your driving hours to test new times and track your cash.
DoorDash
Sign up in minutes and start earning within days.
Once your application is approved, you can start dashing right away and you can start dashing right away and cash out instantly.
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How much can I make working as a dasher during peak hours?
So, you’re eager to boost your income, right? Well, let me tell you, the key to that extra cash lies in peak pay. It’s the bonus you snag for dashing during those high-demand hours. And trust me, those peak pay dollars can stack up faster than you’d think.
Also, according to my friend, Susan, look for bonuses that can help you boost your earnings! These are known as “Peak Pay offers” or added Challenges, which provide opportunities to increase your earnings.
Many Reddit users report making between $100 for 4-5 hour shift up to $1400 a week by DoorDashing. 2
So, if you’re ready to prove your prowess in peak times, get set to dial up your income stream and watch those dollars roll in.
The Best Days vs. Times: A Comparative Study
Is it better to DoorDash on weekdays or weekends?
Weekends are the clear champs. That’s when folks unwind, and have a good time, and yes, the demand for food deliveries goes through the roof.
On the flip side, there are less Dashers during the week. So, you can possibly earn more if you know the right area.
Morning, lunch, dinner, or late night: Which is the prime time for dashing?
Lunch and dinner reign as king and queen of prime dash times. But don’t dismiss late-night dashes.
Specifically, in areas buzzing with nightlife or universities, late-night can bring a healthy influx of orders. Morning can be hit or miss, largely dependent on your local market. Thus, a great side hustle for college students.
What is the slowest day for DoorDash?
Mondays top the charts as the slowest day of the week for DoorDash. Folk are just shaking off their weekend mood and are less prone to order in.
Some tout Tuesday and Wednesday as the slowest DoorDash days too, so keep that in mind when planning your shifts.
Are there any specific days in the week that offer higher earnings than others?
Absolutely! When it comes to higher earning potential, Saturday and Sunday are the clear winners. Weekends are like a magnet for order activities, which means more opportunities for you to boost your earnings. And if you happen to catch a long weekend, that’s even better!
But here’s the deal – these are general trends. Keep in mind that some towns might have their own unique quirks, like a Taco Tuesday tradition that can make all the difference in your earnings. So, stay open to local insights and adapt your strategy accordingly!
Maximizing earnings during peak hours
To maximize your DoorDash earnings during peak hours, you’ve got to stay in sync with local demand. Pay attention to special events, holidays, and weekends when people prefer ordering in, and keep an eye on weather changes, as rain and snow tend to increase order frequency.
For a winning strategy, position yourself strategically near restaurant partners to receive orders swiftly. Be selective with the orders you accept during peak times to make the most of high demand, and always remember to deliver with a friendly smile, because exceptional service goes a long way in building customer loyalty and boosting your income!
How can I maximize my earnings when doordashing?
Boost your income by merging savvy strategies with exceptional service. Dive into these success tips:
First things first, get your radar on and gravitate towards bustling areas – that’s where the magic happens. More orders, more opportunities, more cash in your pocket.
Now, speaking of timing, don’t miss the chance to dash during peak hours. Schedule your time in advance that you want to dash. That’s when the demand kicks into high gear, and you might just snag some sweet peak pay bonuses.
Keep those eyes peeled for bonuses and promotions – they’re like little surprises that boost your earnings.
Here’s a golden nugget of advice: build connections with the restaurant staff. It’s a secret shortcut to quicker order handling, and less waiting means more dashing!
Lastly, never underestimate the power of professionalism. Deliver with a big smile, go the extra mile, and watch those top ratings and generous tips roll in. It’s all about creating an experience that keeps the customers coming back for more.
Strategic Planning Tips: Key is the Busiest Time to Doordash
Analyzing Location for the Best Times to Doordash in My Area
Your location is a game-changer for your Dashing journey. Consider this: urban areas are bustling with customers, while suburbs might yield bigger orders. So, explore your turf, identify areas teeming with DoorDash restaurant partners, and stick around.
Also, pay attention to where you’re making those drop-offs. Do residential areas bring in better tips, or does corporate tip higher? The sweet spots in different cities can vary, so it’s all about finding where your golden opportunities lie and making them your own.
Experimenting with different shifts to identify the most profitable times
Each time frame reveals its own unique potential for lucrative orders. So, switch things up, and you might just uncover unexpected opportunities and generous tips along the way!
Just make sure to log your earnings to compare.
Professionalism and Customer Service Matter
Your earnings and your ratings go hand in hand, making professionalism an absolute must. Following customer instructions, and ensuring a positive interaction all contribute to your review. Don’t forget to dress the part, maintain a friendly demeanor, and be responsive.
But here’s the secret sauce – infuse your interactions with a personal touch. Small gestures, like including extra cutlery or offering a weather-friendly greeting, can set your service apart and earn you those coveted 5-star ratings.
It’s all about going the extra mile for customer satisfaction!
Why delivering during promotions, bonuses, and streaks is beneficial
So to sum it up, what would really light up your earnings are promotions, bonuses, and those streaks that make the game interesting. My friend, Susan, said to pay attention to: Peak Pay or Challenges.
Peak Pay is your chance to pocket extra cash for every delivery when things are buzzing. The best part is, DoorDash rolls out these goodies during high-demand periods to give you that extra push to hit the road.
Well, they’re like your roadmap to earning bonuses by hitting a specific number of deliveries within a set timeframe. Typically $1-3 dollars extra per delivery. 3
Which Peak Times will You Choose to Doordash?
In conclusion, the optimal times to make the most out of your DoorDash side gig are during lunch, dinner, and late-night shifts.
Experimentation though, is key to understanding what works best in your particular market.
You could further optimize your earnings by utilizing other gig apps such as Uber Eats and Instacart, or by capitalizing on specific types of orders, such as alcohol deliveries, which may provide higher earnings. Remember factors such as tips, peak pay, and other incentives can impact your earnings, so keep an open mind and always look for new strategies to maximize your income.
Whether you’re a morning person fueling the coffee rush or a night owl catering to late-night snackers, the choice is yours.
Find your rhythm and make the most of those high-earning hours. With a smart strategy in your back pocket, you’re all set to Dash your way to success!
So, why wait? Start your DoorDash journey today and let that extra income flow in. It’s time to take that leap and embrace a more financially stable fulfilling tomorrow!
More Side Hustle Ideas:
Source
DoorDash. “The New Dasher Guide.” https://help.doordash.com/dashers/s/article/New-Dasher-Roadmap?language=en_US#:~:text=Peak%20times%3A%20Lunch%20and%20dinner,to%205%20days%20in%20advance. Accessed December 14, 2023.
Reddit. “How much do you make doing doordash weekly?” https://www.reddit.com/r/doordash/comments/xfii0s/how_much_do_you_make_doing_doordash_weekly/. Accessed December 14, 2023.
DoorDash. “Peak Pay.” https://help.doordash.com/dashers/s/article/Peak-Pay?language=en_US. Accessed December 14, 2023.
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Increase in urbanization and rise in consumer interests for home decor drive the growth of the home decor market.
WILMINGTON, Del., Dec. 5, 2023 /PRNewswire/ — Allied Market Research published a report, titled, “Home Decor Market By Product Type (Home Textile, Floor Covering, and Furniture), Price (Premium and Mass), Distribution Channel (Supermarkets And Hypermarkets, Specialty Stores, E-Commerce, and Others), and Income Group (Lower-Middle Income, Upper-Middle Income, and Higher Income): Global Opportunity Analysis and Industry Forecast, 2023-2032”. According to the report, the global home decor market size was valued at $647.4 million in 2022, and is projected to reach $1.1 billion by 2032, growing at a CAGR of 4.9% from 2023 to 2032.
Request Sample Copy of Report: https://www.alliedmarketresearch.com/request-sample/751
Prime determinants of growth
The home decor market is a dynamic and ever-evolving industry, shaped by a blend of prevailing trends, growth factors, and industry obstacles. Notably, the industry is witnessing surge in sustainability practices and environmentally conscious product choices as a prominent trend. Consumers are increasingly seeking eco-friendly solutions, further increasing the shift towards responsible consumption. Furthermore, technological innovations, particularly the integration of smart home solutions, are driving transformative changes in the sector. The digital sector has emerged as a crucial platform for businesses as consumers increasingly opt for online shopping. The COVID-19 pandemic accelerated this transition, emphasizing the need for a strong online presence in the home decor sector.
Nevertheless, tariffs and trade restrictions limit the supply chain, affecting the cost and availability of raw materials, and subsequently, influencing pricing and profit margins. Economic fluctuations and shifting consumer tastes are projected to introduce volatility into the market. Despite these limitations, the home decor market offers different business opportunities. Collaborations with local artisans and the innovative use of eco-friendly materials can open up niche markets.
Report coverage & details:
Report Coverage
Details
Forecast Period
2023–2032
Base Year
2022
Market Size in 2023
$647.4 Million
Market Size in 2032
$1.1 billion
CAGR
4.9 %
No. of Pages in Report
444
Segments Covered
Product Type, Price, Distribution Channel, Income Group, and Region
Drivers
Increase in consumer interest toward home décor
Increase in urbanization worldwide
Opportunities
Improvement in lifestyle
Smart home decor
Restraints
Increase in cost of raw materials
Procure Complete Report (444 Pages PDF with Insights, Charts, Tables, and Figures): https://www.alliedmarketresearch.com/checkout-final/5a77b1796e54e7c753f05351508016bf
The floor covering segment to maintain its leadership status during the forecast period
By product type, the floor covering segment held the highest market share in 2022, accounting for less than half of the global home decor market revenue, and is estimated to maintain its leadership status during the forecast period. Floor covering products are made from materials such as tiles, wood & laminate, vinyl, and rubber. Awareness regarding wastage and recycling has increased significantly. Thus, recycled flooring materials such as wood & laminate and tiles had an impact on the market for flooring products. Consumers have shown high acceptance for stylish floor covering products, which are cost-effective and eco-friendly. However, the home textile segment is projected to attain the highest CAGR of 4.9% from 2023 to 2032.
The mass segment to maintain its leadership status during the forecast period
By price, the mass segment held the highest market share in 2022, accounting for more than three-fifths of the global home decor market revenue, and is estimated to maintain its leadership status during the forecast period Increase in consumption of mass pricing products by lower-middle and upper-middle class consumers significantly contributes toward the growth of the market. The cost of these products does not include the security or insurance charge. In addition, the premium segment is projected to attain the highest CAGR of 5.3% from 2023 to 2032. Luxury brands are intended to have symbolic and experiential benefits in terms of prestige and social status. The ingredients used in luxury confections are of premium quality and naturally sourced.
The specialty stores segment to maintain its leadership status during the forecast period.
By distribution channel, the specialty stores segment held the highest market share in 2022, accounting for less than half of the global home decor market revenue, and is estimated to maintain its leadership status during the forecast period. Consumers prefer to analyze and evaluate products before purchase, thereby boosting the retail sales of home décor products through specialty store. In addition, the e-commerce segment is projected to attain the highest CAGR of 5.3% from 2023 to 2032.
Asia-Pacific to maintain its dominance by 2032
Region-wise, Asia-Pacific held the highest market share in terms of revenue in 2022, accounting for nearly one-third of the global home decor market revenue. Changes in lifestyles of the people in the region have influenced buying trends of consumers. Young families mostly spend on floor covering and furniture. Consumers in the region prefer buying home décor products from specialty stores and departmental stores. Online buying trend is emerging in the region, which significantly contributes toward the growth of the market. In addition, the LAMEA region is also expected to witness the fastest CAGR of 5.6% from 2023 to 2032 and is likely to dominate the market during the forecast period.
Enquire before buying: https://www.alliedmarketresearch.com/purchase-enquiry/751
Leading Market Players: –
Mannington Mills Inc.
Mohawk Industries Inc.
Shaw Industries Group, Inc.
Ashley Furniture Industries Ltd.
Inter IKEA Systems BV
Forbo International SA
Herman Miller Inc.
Duresta Upholstery Ltd.
Kimball International
Armstrong World Industries, Inc.
The report provides a detailed analysis of these key players in the global home decor market. These players have adopted different strategies such as new Distribution Channel launches, collaborations, expansion, joint ventures, agreements, and others to increase their market share and maintain dominant shares in different regions. The report is valuable in highlighting business performance, operating segments, Distribution Channel portfolio, and strategic moves of market players to showcase the competitive scenario.
Read More Trending “AMR Exclusive Insights:
• DIY Home Decor Market Opportunity Analysis and Industry Forecast, 2021-2031 • Sustainable Home Decor Market Opportunity Analysis and Industry Forecast, 2021-2031 • Home Decor And Accessories Market Opportunity Analysis and Industry Forecast, 2023-2032 • Textile Home Decor Market Opportunity Analysis and Industry Forecast, 2023-2032 • U.S. Home Decor Market Opportunity Analysis and Industry Forecast, 2020-2027
About Us:
Allied Market Research (AMR) is a full-service market research and business-consulting wing of Allied Analytics LLP based in Wilmington, Delaware. Allied Market Research provides global enterprises as well as medium and small businesses with unmatched quality of “Market Research Reports” and “Business Intelligence Solutions.” AMR has a targeted view to provide business insights and consulting to assist its clients to make strategic business decisions and achieve sustainable growth in their respective market domain.
Pawan Kumar, the CEO of Allied Market Research, is leading the organization toward providing high-quality data and insights. We are in professional corporate relations with various companies and this helps us in digging out market data that helps us generate accurate research data tables and confirms utmost accuracy in our market forecasting. Each and every data presented in the reports published by us is extracted through primary interviews with top officials from leading companies of domain concerned. Our secondary data procurement methodology includes deep online and offline research and discussion with knowledgeable professionals and analysts in the industry.
Contact:
David Correa 1209 Orange Street, Corporation Trust Center, Wilmington, New Castle, Delaware 19801 USA. USA/Canada (Toll Free): +1-800-792-5285 UK: +44-845-528-1300 Hong Kong: +852-301-84916 India (Pune): +91-20-66346060 Fax: +1-800-792-5285 [email protected]: www.alliedmarketresearch.comAllied Market Research Blog: https://blog.alliedmarketresearch.com/consumer-goods
View original content:https://www.prnewswire.com/news-releases/home-decor-market-to-reach-1-1-billion-globally-by-2032-at-4-9-cagr-allied-market-research-302005707.html
In the past, investing was thought of as something only wealthy people did. And unfortunately, many people used this as an excuse to put off saving for retirement, saying they would do it when they earned more money.
But if you wait to start investing, you lose out on the benefits of compound interest and shortchange your retirement savings. So, it’s best to get started as soon as possible, even if you only have a bit of money to tuck away every month.
One of the easiest ways to invest money is by using micro-investment apps. This article will explain what micro-investing is, how it works, and six micro-investing apps we recommend trying out.
10 Best Micro Investing Apps
Micro-investing apps make it easy to get started with small amounts of money and learn the basics of investing. We’ve compiled a list of the best micro-investing apps on the market today. Whether you’re a beginner or a seasoned investor, you’re sure to find an app that fits your needs and investment goals.
1. Robinhood
Account minimum
Margin accounts, ETF’s, crypto
Great for beginners!
Robinhood aims to make investing accessible to everyone, which is evident in the fact that the company doesn’t charge any commission or management fees.
In addition, there’s no charge to open a brokerage account, and bank transfers are free as well.
The app is designed for beginners, so there is no confusing terminology, and the interface is easy to use.
Unlike other micro-investing apps, Robinhood lets you trade full stocks and cryptocurrencies like Bitcoin. However, it doesn’t offer mutual funds and bonds.
Check out our in-depth review of Robinhood.
2. Axos Invest (Formerly WiseBanyan)
Account minimum
New investors
or goal-based investing
You can get started with Axos Invest (formerly known as WiseBanyan) for just $1. The company doesn’t charge any trading fees for the most basic version. But if you upgrade to one of the premium versions, the company does charge fees.
Axos Invest focuses on goal-based investing, so once you sign up, you’ll be prompted to create your first “Milestone.”
Then, you’ll enter how much you want to save and by what date. From there, Axos Invest recommends how much you should save to reach your goal.
3. SoFi Invest
Account minimum
$0 for Automated Investing
$1 for Active Investing
Active and Hands-Off Investors
SoFi is a well known brand in the personal finance space, and their investing app is another high quality product.
This investment service provides users with the ability to either trade actively or opt for automated trading tools to take care of your account.
SoFi is geared towards trading in fractional shares, which they refer to as “stock bits”. This means the app is a solid choice for those wanting to invest their spare change.
You can also tap into savings accounts or make larger deposits to add more to your investment accounts.
4. Plynk
Account minimum
$2 per month
New investors
Plynk is designed to guide your learning while you begin to invest. The Plynk app offers investors access to a selection of stocks, ETFs, mutual funds and four cryptocurrencies. And you can start investing with just $1.
One of the best things about Plynk’s platform is the straightforward, easy-to-understand language. You won’t find technical jargon or complex charts and tables.
The Plynk app also allows investors to easily set up dollar-cost averaging, which is an ideal investing technique for many new and experienced investors.
5. Webull
Account minimum
Active traders and investors
Webull is a stock trading app offering free stock trading as well as free trades on ETFs, options and cryptocurrencies.
Webull also allows users to trade fractional shares, making it a great choice for micro investing.
Webull provides users with plenty of powerful tools to assist with in-depth trading analysis, making it a solid option for active and experienced traders. Plus, setting up a Webull account is free and there are no account minimums to worry about.
6. Stash
Account minimum
$1 per month
New investors
or tax-advantaged retirement accounts
Stash is another hands-off micro-investing app designed for beginner investors. After you sign up, Stash will ask you a series of questions to determine your tolerance for investment risks. You will be labeled as a conservative, moderate, or aggressive investor.
One of the unique things about Stash is that you can choose the types of companies you want to invest in. So if there is a particular cause or type of company that you’re interested in, you can set that in your investing preferences.
After you’ve chosen the types of companies you’d like to invest in, you’ll set up your “Auto-Stash.” You choose how much you want to invest and how often.
7. Public
Account minimum
(1-2% markup on crypto)
Young investors
Public.com is a blend of both investment and social media platforms. It’s designed for younger and socially oriented investors who would like to own fractional shares of stocks and ETFs.
You can share ideas within a community of like-minded investors. You might think of it as a kind of investing social network.
The aim of Public.com is to create an inclusive and educational community focused on stock market trading and investment.
For young investors who wish to align their social and investing preferences, as well as learn from other investors, Public.com is a great option.
8. Betterment
Account minimum
Low balance investors
Goal-based investing
If you’re looking for something a little more hands-on, then Betterment might be a suitable option for you. Betterment gives you the option to work with a financial advisor who can make investing recommendations.
There are two different plans to choose from, and the most basic plan doesn’t require any upfront balance to get started.
Betterment is a great option for anyone who wants an easy investing option while still maintaining a bit of control over their investment portfolio.
9. M1 Finance
Account minimum
Experienced Investors
M1 Finance might be the best micro investing app for more experienced investors. It is ideal for those looking for customized investment portfolios with some automated options, as well as those looking to set up commission free retirement accounts.
Purchasing fractional shares, setting up recurring deposits and extensive portfolio management options is easy with M1 Finance’s quality app. M1 Finance aims to be a singular personal finance app for building wealth and establishing a diversified portfolio.
Above all, M1 Finance makes investing easy. Simply deposit your funds, set your stock and index selections and use their automated service for commission free trading.
M1 Finance will also automatically rebalance your portfolio in accordance with your stated asset targets, to improve the overall performance of individual stocks.
10. Acorns
Account minimum
$1 per month
Hands-off investors
(e.g., College Students)
If you want a hands-off approach to investing, Acorns will be your best bet. After you sign up, you’ll connect your credit card or debit card to Acorns.
Then, whenever you make a purchase, Acorn rounds it up to the nearest dollar and deposits that “spare change” into your investment account.
For instance, if you make a purchase of $9.67, Acorns will save the additional 33 cents for you. Once your Acorns account reaches $5, the company will invest the money for you.
Acorns also gives you access to a robo-advisor, IRAs, and even a checking account.
What is micro-investing?
According to one survey, more than 47% of Americans are not saving for retirement. When pressed about their decision not to invest, over 34% said they don’t have enough money to invest.
The basic premise behind micro-investing is that you only need a few dollars to start investing. When you use a micro-investing app, you invest in very small increments by buying fractional shares.
With a micro-investing app, you can invest as little as $5. And with micro-investing, you don’t have to know anything about the stock market. The money you save is put in a portfolio of stocks that the company creates for you.
Is micro-investing even worth it?
Micro-investing will not get you rich, and it’s not going to help you fund your retirement goals. For that reason, it’s easy to write micro-investment apps off as not being worth your time.
But every day you put off investing is one less day that your money can grow in the market. So, you can wait until you feel like you have “enough money,” or you can work with what you have today.
Here are just a few benefits of using a micro-investing app:
Invest with very little money: Micro-investing platforms allow you to invest, even if you only have $5 to spare. So if you can skip your morning latte, then you have enough money to give micro-investing a try.
Save it and forget about it: It’s hard to set aside money in a savings account. You know it’s there, and it’s easy to access and spend. With a micro-investing app, it’s easy to save your money and forget about it.
Build positive habits over time: Anytime you’re trying to build a new habit, it’s best to start small. Micro investing allows you to ease into investing, and you can start saving more money when you’re ready.
See also: How to Invest: A Basic Guide to Making Your Money Grow
Pros and Cons of Micro-Investing Apps
While it’s true that micro-investing provides many benefits, they’re not necessarily the right choice for everyone. It’s worthwhile taking the time to understand the all nuances before committing financially.
Pros
24/7 Access
Using a micro investing app allows you full access to your investment account around-the-clock. You won’t ever have to worry about opening hours or holidays getting in the way of your ability to monitor and manage your funds.
Easy Fractional Investment
Traditional investment in stocks and ETFs requires large amounts of funding, but micro investment means you purchase fractional shares quickly and easily. This means you can begin your investment portfolio with your spare change, rather than hundreds or thousands of dollars.
Low Account Minimums
Another factor which makes micro investment apps attractive are the low account minimums. Most micro-investing apps have $0 minimum balance requirements, so you can begin investing with as little as you wish.
Safety
As with traditional investment accounts, legitimate micro-investing platforms will be registered with the U.S. Securities and Exchange Commission. On top of that, all savings and checking accounts with micro investing companies are FDIC insured.
Cons
Fees Can Be High
Account fees can vary, so it’s important to watch out for this. Don’t assume that an account with low minimums will also have low fees. If you’re only investing small amounts, paying high fees might not seem like a good deal in the long term.
Limited Investment Choice
Most micro investment apps won’t allow you to handpick the stocks inside your portfolio. While you will have choice regarding which set portfolios you invest in, you’re less likely to be able to pick and choose specific stocks.
Won’t Change Your Retirement Plans
One thing to keep in mind is that using a micro investment app won’t do much to affect your retirement on its own. It’s more about learning good investment habits, and getting familiar with maintaining and growing a portfolio.
Features of the Best Micro-Investing Apps
So, how do you decide which micro investing app is the right one for you? We’ve compiled a list of the most important features below to help you know what to look for. The best micro investment apps will have the following qualities:
Ease of Use
Fundamentally, the best micro investment apps will be easy and intuitive to use. They are often free of the usual clutter and jargon of some traditional brokerage accounts. With simple, easy to navigate interfaces these apps should provide an enjoyable user experience for all.
Low Minimum Investments
Good investing apps should allow you to access the market with just a few dollars. This is possible because they’re designed to allow you to purchase fractional shares of ETFs and other assets. Not all investing apps will come with a low minimum investment, however, so be sure to check if you’re a low budget investor.
Diversified Investment
The best investing apps will provide users with the chance to invest in diverse portfolios which are automatically generated. Asset allocation and diversification can be challenging even for experienced investors, so this is a great feature of these apps.
When you’re starting out as an investor, the sooner you can learn about diversification the better. And these apps should make it relatively easy for you to both practice and learn about asset diversity.
Educational Tools
As most micro investing apps will be marketed to newcomers, education is an important factor. If you’re just starting out with investing, then the best micro investment app for you will likely provide a wealth of educational resources and advice.
Keep in mind, however, that most micro-investing apps won’t offer access to a professional financial advisor.
Recurring Transfers
The best investing apps allow you to easily set up automatic transfers from your bank account to fund your investment account. A recurring transfer can remove some of the human error involved in managing your account and allow you to quickly build up a habit of funding your account.
Additional Services
While some apps are minimalist and simple, others come with the option of additional financial services. In addition to brokerage accounts, some offer access to a savings or checking account, as well as IRA and custodian accounts. Depending on your own financial goals, an app with additional services might be worth the extra fees.
Final Thoughts
Micro-investing apps make it simple for anyone, even those with just $5 to spare, to begin investing in the stock market. The apps we’ve covered in this article provide a great starting point.
While micro-investing might not cover all your retirement needs, it’s a smart way to begin saving, especially if your budget is tight. The crucial thing is to start investing and gradually increase your contributions over time. This way, you’re setting yourself up for a better financial future.
Frequently Asked Questions
Which micro investing app has the lowest fees?
Among the micro-investing apps listed, Robinhood, Axos Invest, SoFi Invest, Webull, Public, and M1 Finance all offer commission-free trading, which means they do not charge fees for buying or selling stocks and ETFs. So, you can consider any of these apps if you’re looking for a platform with low fees for micro-investing.
Which app is best for small investments?
Choosing the best app depends on your own budget, needs and goals. The market for micro investment apps has grown rapidly, and there are a lot of different options out there.
The list we’ve compiled in this article are our top picks, and are among the best micro investing apps available. These apps make it easy and convenient to begin investing. They also provide various unique features, low fees, good customer support and educational resources.
Who should use micro investing apps?
Micro investing apps are a fantastic way to begin investing small amounts while you learn the ins and outs. But who will benefit the most from using these apps?
Beginner investors: These apps are perfect for young investors and newcomers because you only need a small amount of money to start.
Passive investors: Most of them are actually robo-advisors which invest on your behalf based on your needs and budget. This automated investing allows you to establish a diversified portfolio based on your goals that you can simply set up and forget about, letting it work away in the background.
Emotional investors: Automated investing means you can’t make rash emotional decisions based on market swings. Instead of constantly worrying about market performance, you just invest small amounts and build your portfolio slowly over time.
Can you get rich from micro investing?
Micro investing is primarily a strategy for saving and building wealth gradually over time. While it’s a valuable tool for starting your investment journey with small amounts of money, it’s important to have realistic expectations. It’s unlikely to lead to rapid wealth accumulation or “getting rich” in a short period.
How do I start micro investing?
Investing today is more accessible than ever before. Nevertheless, it still seems an intimidating world for those who have no experience or education. If you don’t know where to start, you can follow these steps to begin investing with confidence:
1. Decide Between DIY or Automated Investing
If you’re not yet comfortable choosing your own investments, and managing your own portfolio, you’ll want to start with robo-advisor investing. It’s totally normal for beginners to feel uncomfortable choosing stock to invest in, and automated investing is the safer option in any case.
2. Identify Your Investment Goals
This is often the hardest step for new investors, but it’s one of the most important. Figuring out your short and long term financial goals will help bring purpose and structure to your investment decisions.
Generally speaking, investing is successful when considered a long term project. You’re much more likely to find success with investments by holding stock long term, rather than trying to figure out when the best time to buy or sell is.
3. Determine Your Monthly Investment
The traditional advice is to save and invest 20% of your monthly income. With the rise of micro investing, however, you don’t even need to invest much to begin with.
It’s important to pick an amount you can reasonably commit to. Of course, you can always change your automatic investment amount, or just add on extra when necessary, but it’s always better to set it and forget it. Even if it’s a small amount, consistency and time and the key ingredients to good investing.
4. Choose an Account That Fits Your Goals
Once you’ve got your budget and goals determined, it’s time to choose a platform to begin investing with.
Keep in mind that you can always switch the platform you use for micro investing, use more than one, or even open a brokerage account. Just make sure to take all fees into account before you sign up and get committed.
Are there any limitations on the types of investments I can make with these apps?
Micro-investing apps typically focus on stocks, ETFs, and sometimes cryptocurrencies. While they offer a wide range of investment options within these categories, they may not provide access to more complex financial instruments like options, futures, or mutual funds.
Let’s chat about the stock market. Specifically, let’s think about average investors like me and you. And let’s ask: how much money do we need to invest to become a millionaire?
First, we need to set some ground rules. It’d be easy to say, “If you invested in Apple stock in 2002, you could have 1000x‘d your money…boom, you’re a millionaire.”
But that’s not how reality pans out. In fact, we need to apply logical rules to our investing framework. The rules that I espouse on The Best Interest (and that matter for today’s article) include…
Dollar-cost averaging. It’s too hard to determine when the market is overvalued or undervalued. Instead, the long-term investor should commit to a consistent investing schedule (e.g. $300 every month, or 10% of every paycheck, or $10,000 yearly). In fact, waiting to “buy the dip” is demonstrably dumb.
Investing (in stocks) for decades. Simply put, stocks are not a short-term investment. They’re decades-plus. The data shows why.
Diversifying, a.k.a. buying the whole market. History proves how challenging it is to find the “needle in the haystack” in the stock market. This article dives into further detail.
Buy-and-Hold’ing. We don’t sell our investments when the headlines get scary. We hold. The past month has provided a terrific real-life example of why that is, as did the transition from 2022 to 2023.
We reinvest our dividends. This rule is a bit in the weeds but a complete no-brainer.
Make sense? Let’s now put these rules to work. I went back to 1950 and grabbed all the S&P 500 data (which will act as our proxy for “the stock market”) through today.
Then I asked, “If an investor followed our rules, how much would they have needed to save and invest to become a millionaire?”
***Important note: I’m also inflation-adjusting all this data to 2023 values. Being a millionaire in 1950 was drastically different than being a millionaire today. Hence, everything you see below is adjusted to modern terms to make our understanding easier.
We know compound interest is a powerful tool, so we expect millionaire status to get progressively easier over longer investing periods. But we also know the market can be volatile. Two 20-year periods can provide drastically different investment returns.
So let’s compare 10-year periods against 20-, 30-, and 40-year periods. And we’ll look at all 10-year periods from 1950 to today (same for 20-, 30-, and 40-year periods) to show how much variability/volatility exists.
The Data: Becoming a Millionaire in the Stock Market
This chart shows every 10-year period from 1950 to today.
We label each period by its first year; the X-axis shows that.
We then look at the stock market returns for each period to ask, “What annual investment would have gotten us to $1 million over this period?” The Y-axis shows that dollar amount.
e.g. the left-most bar represents the period from 1950 to 1959. Over that period, a $42,463 annual investment would have grown to a $1M portfolio.
For these 10-year periods, the average investor (the dotted red line) needed to invest $71,595 yearly to reach $1 million.
But the data that sticks out to me is the number of periods with a required investment above $100,000 annually. The 1965 and 1999 starting years are prime examples.
This is a glaring problem! If you’re investing ~$150,000 for 10 years (for a $1.5M total investment) and only end up with $1 million, you lost significant capital. Not good.
My takeaway: even over 10 years, the stock market can be volatile. We need to zoom out further. Let’s look at the 20-year data.
The average investor (in red) must commit $27,203 annually to become a millionaire. For those keeping track, that’s a $544,069 outlay over 20 years that grows into $1,000,000.
This data shows a few periods at or above the $50,000-per-year mark ($50K times 20 years = $1M). In other words, these periods showed near-zero, outright zero, or negative returns over 20 years. Examples include the period starting 1955, ’58-’60, ’62
But most periods provided legitimate, absolute returns. That’s great.
But can the average person save $27,203 per year? Then repeat that for 20 years? And this begs a bigger question that we won’t chase down today: is $1M the right goal in the first place. This is good food for thought.
Let’s move on to the 30-year chart.
The average investor (in red) must commit $11,347 annually to become a millionaire. That’s a $340,432 outlay over 30 years that grows into $1,000,000.
None of these periods flirt with zero or negative returns. The “worst” period was 1952 – 1981, which required a ~$23K annual investment (or ~$695K total) to grow into $1M.
And finally, the 40-year data…
The average investor (in red) must commit $4725 annually to become a millionaire. That’s a $189K outlay over 40 years that grows into $1,000,000.
Again, none of these periods flirt with zero or negative returns. The “worst” period was 1969 – 2008, which required a $7500 annual investment (or $299K total) to grow into $1M.
The Power of Long-Term Investing
The 30-year and 40-year charts are particularly encouraging if you break them down into monthly terms.
$1000 per month is powerful.
For most 30-year periods, $1000-per-month made you a millionaire.
For all but three 40-year periods, $1000-per-month made you a multi-millionaire.
“But $1000 per month is a lot!”
I hear you. But between 401(k) contributions, employer matching, IRA contributions, after-tax investing, etc…$1000 per month is a reasonable goal.
If you’re in your 20s or 30s, set your baseline investing goal at $1000 per month. You’ll be setting yourself up for terrific long-term success.
What If You Don’t Have 3+ Decades?
If you’re reading this at age 50, you might not have 3 or 4 decades to wait for the stock market’s compound magic. What to do?
Let’s consult our trusty bucket method. Think about your current assets and savings based on when you’ll need them in the future…
The money you need in your 50s –> Avoid the stock market. Too risky.
The money you’ll need from age 60-65 –> you can introduce some stocks, but as we’ve seen today, positive returns aren’t guaranteed.
The money you’ll need from age 66-70 –> stocks arebecoming increasingly enticing…
The money you’ll need from age 70+ –> 100% stocks is reasonable.
In summary, a fair portion of this 50-year-old’s assets should not be exposed to the stock market. Bonds, for example, are more appropriate.
Despite that, some of their money still has a 20-30+ year timeline. That money should be exposed to a risk asset like stocks.
Financial planning provides the backbone for these types of allocation decisions.
Just Start…
My investing journey started at age 22 with my first employer’s 401(k). Unsure what I was doing, I decided to learn.
11 years later, here I am.
There’s no guarantee the stock market will make me a millionaire. But history is on my side, and I’m controlling what I can (e.g. my monthly savings rate) to make it happen.
I encourage you to do the same.
Thank you for reading! If you enjoyed this article, join 7000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
Want to learn more about The Best Interest’s back story? Read here.
Looking for a great personal finance book, podcast, or other recommendation? Check out my favorites.
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You’ve heard it before, especially if you regularly read or listen to The Best Interest:
Stocks are volatile in the short run and rewarding in the long run
Bonds are less volatile (good) but less rewarding (bad)
It’s a perfect example of investing’s golden relationship between risk and reward.
The two charts we’ll look at today wonderfully present stock and bond behavior. First, let’s baseline ourselves in bonds.
The chart below shows bond data (the Bloomberg U.S. Aggregate bond index) from 1976 through 2022. The gray bars show full calendar year returns in the bond index. The red dots, however, show the largest intra-year decline (“peak to trough”) each year. For example, let’s look at 1997. The bond index finished the year up 10%. But the index was down 2% from its previous high at one point during the year.
Most years have had single-digit returns – the average is +6.6%. And the average intra-year decline has been (-3.4%). 2022 is quite the outlier.
For what it’s worth, this data set syncs up pretty closely with the last ~40 years of declining interest rates (see below). Asrates fall,the values of existing bonds increase. When rates rise, the values of existing bonds decrease (see 2022). Multiple decades of steady interest rate declines (e.g. 1980 to 2021) lead to multiple decades of positive bond returns. The future might not be so steady.
Stock data looks much choppier than bond data. The chart below again shows annual returns (in gray bars) against intra-year draw downs (red dots), but this time for the S&P 500 stock index.
The average annual return is +8.6%. But the average intra-year decline is (-14.3%)!
**Important note – JP Morgan does not include dividends in this chart, which I think is a mistake. Including those dividends, the average annual return is more like ~11% during this period, while the intra-year decline would remain the same.
A year like 2003 serves as a perfect example. Down (-14%) at one point during the year. That feels pretty bad. Yet, at year-end, the S&P was up +26%. Amazing!
Stocks provided significantly better returns than bonds over this period. In total, stocks returned ~6500% (65x), whereas bonds returned ~2000% (20x). A triple-up win for stocks.
But at what cost? Stocks saw an average of (-14.3%) annual drawdowns. That’s roughly the same as bonds’ worst year (-15%).
And stocks had 5 unique annual drawdowns of 30% or more. To put that in dollar terms, 30% of a $500K stock allocation is $150,000. Imagine, once per decade, watching $500K become $350K?!
Granted, investors would be utterly unharmed if they followed conventional wisdom and stayed the course. But that’s much harder done than said. As we’ve discussed countless times, it’s one thing to say, “Stay the course when you’re down $150,000”…and it’s another thing to actually do it.
Our brains hate hanging on for dear life, so we’re tempted to cut bait and “sell to survive.” Literally. Selling our wounded stock position so our mental health can survive. It’s logical human behavior. And terrible investor behavior.
So like a broken record player, we revolve back around to topics like diversification, goals-based investing, etc. Today’s data show why most investors should own stocks and bonds(and possibly other uncorrelated assets). Some assets to grow (even if volatile), and other assets to provide stable near-term spending.
That brings us to the final chart: the same presentation as before, but now for a 60% stock, 40% bond portfolio (through 2022). And, in this chart, JP Morgan does assume dividends in the stock portion of the portfolio.
This 60/40 data shows an average annual return of +9.9%, and an average drawdown of (-7.7%). Solid returns and not too much pain along the way. Maybe there’s something to this diversification after all?
I hope your drawdowns are small, swift, and occur only when you’re not paying attention. But don’t bet your portfolio on it!
Thank you for reading! If you enjoyed this article, join 7000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
Want to learn more about The Best Interest’s back story? Read here.
Looking for a great personal finance book, podcast, or other recommendation? Check out my favorites.
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Getting a home loan may turn out to be an onerous task. Any wealth advisor worth their salt would advise you to weigh all the available options before you can zero in on the ‘right’ lender that can offer the best deal to you.
Although different banks offer home loans at different rates of interest, the borrowers with a high credit score are usually offered loans at a lower rate of interest, and those with a lower score are given loans at a higher interest rate.
Here we give a lowdown on the home loans given by top lenders, and the rates of interest they offer:
State Bank of India: As of now the State Bank of India (SBI) — under a special campaign — is offering home loans for a rate of interest that ranges between 8.6 percent to 9.65 percent per annum.
Borrowers with CIBIL score of 750 plus are entitled to 8.6 percent effective rate and those with CIBIL score between 700-749 are entitled to a home loan for an interest rate of 8.7 percent per annum. This is relatively cheaper than the normal rate of interest (known as card rate) by 55-65 basis points. Higher the CIBIL score, lower the rate of interest and lower the score, higher the interest rate.
Lowest interest rates offered by lenders
Bank
Lowest Interest rate (%)
State Bank of India
8.6
ICICI Bank
9.25
HDFC Bank
8.5
Kotak Mahindra Bank
8.7
Bank of Baroda
8.4
IDFC First Bank
8.75
(Source: Various bank websites)
ICICI Bank: This private bank offers home loans for anywhere between 9.25 to 9.65 percent (for salaried persons) and 9.40 percent to 9.80 percent (for self-employed) for houses costing up to ₹35 lakh. For the home loans ranging between ₹35 to 75 lakh, the rate of interest ranges between 9.5-9.8 percent (salaried employees), and 9.65 – 9.95 percent for self-employed.
For the loans above ₹75 lakh, the rate of interest ranges between 9.6 – 9.9 percent (for salaried employees) and 9.75 – 10.05 percent (for self-employed persons).
HDFC Bank: The largest private bank offers home loans at a standard rate of interest that ranges between 8.75 to 9.40 percent per annum. The special home loan rate ranges between 8.5 to 9.15 percent.
Bank of Baroda:
Kotak Mahindra Bank: This private lender offers home loans for a rate of interest that starts from 8.7 percent for salaried persons and 8.75 percent for self-employed persons.
Bank of Baroda: The public lender offers home loans at a rate of interest that ranges between 8.4 to 10.60 percent to both salaried as well as non-salaried persons.
IDFC First Bank: The private lender offers home loans for a rate of interest that starts from 8.75 percent for salaried persons and 8.85 percent for self-employed persons.
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With flights getting more expensive around Thanksgiving and the winter holidays, you may be inclined to use accumulated points and miles to try to save some money. About 30% of holiday travelers plan to use points and miles to pay for travel expenses in 2023, according to a NerdWallet survey conducted by The Harris Poll of more than 2,000 adults.
That might have been a dependable money-saving strategy five or 10 years ago, back when airlines published award charts that clearly showed how many points or miles you’d need to book a flight. But most U.S. airlines have switched to dynamic award pricing, meaning the cost in points can fluctuate as much as cash prices do.
So in many cases, holiday flights on points are no longer the deal they once were — and can be high enough to make your jaw drop. In fact, you might get a lower cent-per-point value than usual if you’re not careful.
What the data says about holiday travel on miles
NerdWallet does an annual analysis of the value of airline miles. Conducted in August, the analysis looks at redeeming miles for flights 15 days in advance, for flights 180 days in advance, and for holiday flights. (For the latter, NerdWallet looked at flights departing Dec. 22, one of the busiest days to fly around the winter holidays, and returning Dec. 29.) The results show that airline miles are generally worth less around the last week of December.
If you’re flying domestically, there are two ways to think about getting maximum value for miles.
One would be to use the airline miles that are worth the most around the holidays, so you’ll need fewer miles than you would if you booked a similarly priced flight on another airline. In that case, your best bet would be to fly American Airlines or Southwest Airlines, because both airlines’ miles are worth 1.5 cents, the highest holiday valuation of the domestic airlines in the analysis.
The alternative is to use airline miles that have the greatest value at the holidays relative to other times of the year. The analysis found that miles on Frontier Airlines are actually worth more at the holidays, although that comes with some caveats. Meanwhile, miles on Southwest, Delta Air Lines and Spirit Airlines had the same value on holiday redemptions as on nonholiday flights.
If you’re flying internationally, you have other options to maximize your miles.
1.5 cents per mile is good for holiday travel
Among U.S. airlines, American and Southwest have the highest-valued miles when redeemed for holiday flights. Their miles are worth about 1.5 cents per dollar during the holidays. For American, this is slightly lower than its usual valuation at 1.7 cents per dollar. For Southwest, the 1.5 cents per point is the same as nonholiday travel redemptions.
To determine the redemption value of miles, divide the cash price of the flight by the number of miles required to get it.
Holiday travel valuation (per mile)
Nonholiday travel valuation (per mile)
Difference between holiday travel and nonholiday travel valuation (per mile)
Alaska Airlines
1.3 cents.
1.4 cents.
-0.1 cent.
American Airlines
1.5 cents.
1.7 cents.
-0.2 cent.
Delta Air Lines
1.2 cents.
1.2 cents.
No difference.
Frontier Airlines
1.3 cents.
1.1 cents.
-0.2 cent.
Hawaiian Airlines
1.2 cents.
-0.2 cent.
JetBlue Airways
1.3 cents.
1.5 cents.
-0.2 cent.
Southwest Airlines
1.5 cents.
1.5 cents.
No difference.
Spirit Airlines
No difference.
United Airlines
1.1 cents.
1.2 cents.
-0.1 cent.
Frontier Airlines is the only airline that fared better in the analysis than usual. Its holiday valuation of 1.3 cents per point is slightly higher than its normal baseline of 1.1 cent. However, this cost considers only the base fare — added fees for seat selection or baggage might decrease your value per point.
To maximize your points, consider international airlines
The highest-valued miles during the holidays don’t come from U.S.-based airlines. If you’re planning on vacationing during the holidays and aren’t tied to a specific location, you could blow the 1.5-cents-per-point mark out of the water if you were to fly, say, ANA (All Nippon Airways) or Singapore Airlines to Asia.
Not only do both airlines consistently rank as the world’s best in Skytrax’s rankings, but they also still have award charts, so their award flight prices generally don’t go up as much as the dynamic prices in other programs. ANA’s miles are worth 2.8 cents per mile during the holidays, the same as usual. Singapore’s miles are worth 2.1 cents per mile during the holidays, up from 1.5 cents usually.
If you haven’t flown these airlines recently (or ever), you might still be able to book with miles if you have a travel credit card that transfers to either of these airlines’ loyalty programs. ANA is a transfer partner of American Express Membership Rewards, and Singapore Airlines is a transfer partner of both AmEx and Chase Ultimate Rewards.
Use the same strategies to save as you would on flights booked with cash
If the price in miles makes your head spin, remember that the principles for saving are the same for flights booked in cash and points. To reduce the cost of holiday flights, you can try:
Flying on less popular days. Less demand equals lower cash prices. And less expensive flights mean they usually cost less in miles, too. According to Transportation Security Administration data, you’ll want to avoid days like the Sunday after Thanksgiving, which is generally the busiest single travel day in U.S. airports all year.
Use a combination of miles and cash. Delta and United offer the choice of paying for your fare partially in miles and partially in cash, which is a nice option if you don’t have sufficient miles for the fare you’re booking. Booking through your credit card’s travel portal also yields a miles and cash option. Lastly, consider other ways to unbundle your travel like paying cash for a one-way flight and miles for the way back.
Go international when everyone else is going domestic. Thanksgiving week can be a cheaper time to travel abroad because it’s not a holiday in other countries. If you’re thinking about going abroad around the end of December, consider Thanksgiving instead.
You may be feeling the squeeze on holiday travel because it seems too expensive right now. Flight cash prices can still feel high, even though data from the consumer price index actually indicates that they are lower than they were before the pandemic (September 2023 airfares were about 6.5% lower than airfares in September 2019.) Redeeming miles can be a good way to lower your travel costs, but make sure you’re not spending more miles than it’s worth.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for: