By Jason Topp4 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited June 27, 2010.
Everyone should be saving into a Roth IRA for retirement!
Have you heard those words before?
I’ve seen them strewn about the web here ‘n there on various blogs or in comments on other personal finance sites.
Is that true? – Should everyone be saving into a Roth IRA?
Not exactly.
Although Roth IRA’s have become a very popular retirement account over the last 10 years, and have contributed greatly to the whole “Tax Diversification” conversation, there are still some scenarios where they don’t make sense.
Let’s take a look at three reasons why you should NOT use a Roth IRA for retirement savings.
You Make Too Much Money
We all wish we had this problem right? Uncle Sam doesn’t want you to put money away that will be completely tax free if you are a high-income earner. They will actually phase you out of your contributions beginning at a certain income.
What exactly is a high-income earner?
Well, here is the breakdown for Roth retirement savings:
If you are a single filer and you earn between $105,000 and $120,000 you start getting phased out. Anything above $120,000 you cannot contribute to a Roth IRA.
If you are married filing jointly and make between $167,000 and $177,000 you get phased out. Anything above $177,000 you cannot contribute to a Roth!
So, here’s how this would apply – let’s say you are married and you’re knocking down$165,000 and you think your income is going up – do you really want to open a Roth IRA for possibly one year and then get phased out? Probably not, but at the very least you want to double check your figures and do what’s best for you.
So, if you make too much money – a Roth IRA may not make sense for you – or may not even be allowed.
Your Tax Bracket Will Be Lower in Retirement
Tax rates are at an all time low! What are the odds they’ll be going up soon? I’d say good to very good!
That being said, we generally don’t know for sure what tax rates will be when we retire.
Most folks do assume their brackets will be lower – and for good reason. If you’re making decent money through your peak earning years and expect your income to decrease drastically in retirement then there is a good chance you’ll have a lower bracket.
The reason you may not want to contribute to a Roth IRA in this case is because Roth IRAs use after-tax money for contributions. That means you’ve already paid the tax on it (in a higher bracket mind you) and will be pulling it out in a lower tax bracket.
The tax savings would not be legitimized if you are in a higher bracket now and a lower one later.
The difficult part is that we don’t know for sure what our brackets will be and also most folks want to maintain standard of living and might need the same amount of income in retirement, which means you need to carefully consider some numbers and figure out what the best route would be for you.
You Are Already Maxing Out a Traditional IRA for Retirement Savings
Let’s say that for whatever reason (you don’t have a 401k through work or you are using a Non-deductible IRA and then converting to a Roth) you are contributing to a Traditional IRA and are thinking about starting a Roth IRA – you need to be aware of the IRA contributions limits.
In other words, Uncle Sam only allows you to contribute a certain amount to all IRA’s no matter what kind.
So, if you are under 50 years of age, you can contribute up to $5,000 per year into an IRA. If you are over 50 – you can contribute up to $6,000.
If you are contributing the full $5,000 to a Traditional IRA, you cannot contribute another $5,000 to a Roth. It’s only $5,000 total!
So, where a Roth IRA would not make sense is if you really need the Traditional IRA to help lower your taxable income now rather than caring so much about tax-free down the road.
In that case you may want to max fund your Traditional IRA to reap tax benefits now.
If you are not max funding your Traditional IRA, you could split the difference (i.e. $2,500 to a Traditional and $2,500 to a Roth), but only if it makes sense for you from a tax standpoint after running some numbers.
Financial success can be due to making good decisions or avoiding big mistakes. In many cases, the biggest mistakes happen after good decisions, because the stakes have become higher.
As an example, let’s consider the dilemma of Motley Fool reader Jim, who emailed us this question: “Did I make a substantial error when taking money out of my IRA?”
To help answer that question, Jim sent along some details:
He’s retired.
His IRA was worth $325,000.
He couldn’t get a mortgage.
He used $150,000 of his IRA to buy a house.
He receives $24,000 annually from Social Security.
Now, that’s not all the information we’d need to determine whether he treated his IRA with TLC. But from what he told us, I’m going to make an initial diagnosis: He made a few mistakes.
As a cautionary tale for all us retiree wannabes, let’s take a look at some important lessons from Jim.
Lesson #1: Crunch your numbers before you retire
The good thing that Jim did was save for retirement. In fact, he had a bigger nest egg than most retirees, according to the Employee Benefit Research Institute’s 2012 Retirement Confidence Survey. Only 15 percent of the participating retirees reported having more than $250,000 saved up.
Unfortunately, being significantly above average still may not be good enough, especially since it’s my opinion — based on studies and anecdotal evidence — that too many people retire too early. (NPR’s series about Americans working longer mentioned a woman in her 90s who had to go back to work.) Having more than most retirees may be like being one of the best players on the practice squad.
Determining whether you have enough to retire can be a complicated analysis, perhaps best done by paying a fee-only financial planner who charges by the hour or by the project — such as many of the folks in the Garrett Planning Network — to help with the ‘rithmetic. However, for the purposes of this article, we’ll use the 4 percent withdrawal rate rule: a rule of thumb that says retirees should withdraw no more than 4 percent of their portfolio in the first year of retirement, and then adjust that amount every subsequent year for inflation. (There’s plenty of debate about whether 4 percent is actually best number, but it’s good enough for this discussion.) So, 4 percent of Jim’s $325,000 IRA is $13,000. Add it to Social Security, and he has income of $37,000.
But wait! He no longer has $325,000. That’s because he didn’t know about Lesson #2, which is…
Lesson #2: Get a mortgage before you retire
Ideally, you kill your mortgage (after all, “mort” is “death” in Latin, and the “gage” part means “pledge”) before you quit your job. However, if you’re in the position of needing a mortgage in your 60s, you’ll be more likely to get one while you’re still working because you’re still earning a paycheck and likely have a higher income. Also, it’s against IRS rules to use an IRA as collateral for a loan.
Lesson #3: Avoid large traditional IRA distributions
Unfortunately for Jim, he didn’t get a mortgage, so he made a $150,000 withdrawal from his IRA. Assuming this is a traditional tax-deferred IRA, that withdrawal was taxed as ordinary income — likely vaulting him from the 15 percent tax bracket to the 28 percent tax bracket. Thus, to have $150,000 to spend on a house, he likely would have withdrawn something closer to $180,000 to cover both the price tag and tax tag.
All still may not be lost
Assuming Jim has $145,000 left in his IRA (i.e., he withdrew $180,000 from the $325,000 he had), applying the 4 percent rule of thumb to that amount (resulting in $5,800), and adding that to his Social Security ($24,000) gives Jim an estimated annual income of approximately $29,800. According to the Department of Labor’s 2010 Consumer Expenditure Survey, the average household led by someone age 65 or older has annual expenditures of $36,802. Jim might be OK if he keeps his retirement modest; he doesn’t have a mortgage, so he just needs to worry about maintenance as well as food, utilities, transportation, taxes (which will be low for him going forward), and health care (not so low, and growing). Also, if he needs extra funds, he can get a reverse mortgage, which could add another few thousand dollars of annual income, depending on his age. However, this doesn’t leave much room for unexpected big-ticket home repairs or health repairs.
Even though he’s retired, it’s not too late for Jim to crunch his numbers to determine whether he can be reasonably sure that his portfolio will last the rest of his life. If it looks like that isn’t likely, then he has to change one of the key variables – income (i.e., go back to work), expenses (lower them further), or life (shorten it — the least-attractive option). Even working for a few more years, even part-time, can have a powerful impact on your retirement security. And it’s better to do it now rather than wait until your 90s.
If you’re wondering whether a travel rewards credit card is right for you, consider your travel goals and determine which card fits your lifestyle the best and whether it’s worth paying the annual fee.
If your end goal is to save on travel, the Capital One Venture Rewards Credit Card might be the perfect pick since you can redeem your rewards directly for travel or transfer them to over a dozen airline and hotel partners. Its annual fee is $95, which is affordable, but still a consideration.
Here’s what makes the Capital One Venture worth it.
Welcome offer
For starters, the Capital One Venture is currently offering new applicants 75,000 bonus miles after making $4,000 in purchases during the first three months.
Those bonus miles are worth $750 when redeemed toward travel, but potentially much more if you’re able to leverage the Capital One program’s various airline and hotel partners, easily offsetting the $95 annual fee. As such, we value this sign-up bonus at $1,388.
Earning Capital One miles
One of the top reasons many people love the Capital One Venture is its straightforward earning structure of 2 Capital One miles per dollar on virtually anything you buy. You also don’t have to worry about miles expiring as long as you keep your account open, and there’s no limit to how many miles you can earn.
A big factor as to why the card is so attractive is that there are no categories to memorize or quarterly bonus categories to activate — it’s an ideal card for busy people who want to simplify their earning strategy and redemption options.
Related: How (and why) you should be earning lots of Capital One miles
Redeeming Capital One miles
This is where the card truly distinguishes itself. The two foremost ways to redeem your Capital One miles are at a fixed value or by transferring them to airline and hotel partners.
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You can redeem miles at 1 cent apiece with the fixed-value option toward eligible travel expenses charged to the card. For example, say you reserved an Airbnb home for $750 for an upcoming vacation. You could redeem the 75,000 miles earned from the sign-up bonus to offset the Airbnb purchase and cover the entire stay from the miles earned on your Capital One Venture.
This particular redemption option comes in handy when you don’t want to jump through hoops to find award availability, or if you like to stay at non-chain hotels. This is also a popular redemption approach when you find cheap airfare and prefer to save your other valuable transferable points for more aspirational redemptions.
Another way to redeem your hard-earned Capital One miles is to transfer them to partner airlines or hotels. This can be a great choice when you are ready to maximize some award chart sweet spots and stretch your miles.
Related: How to use your Capital One miles at a fixed value
Other perks & benefits
The Capital One Venture proves its worth with other ongoing benefits, too. They include:
Although you hopefully won’t have to use some of these benefits, like the travel accident insurance, others, like the Global Entry and lounge perks, can save you money on a regular basis.
Bottom line
The Capital One Venture is a favorite among travelers for a few reasons.
Its simple earning structure of 2 miles per dollar makes it easy to maximize on almost every purchase. The ability to redeem miles both directly for travel at a fixed rate as well as transferring to various airline and hotel partners makes it extra versatile. And then there are the value-added benefits like statement credits for Global Entry and relatively robust travel and purchase protections.
In short, it’s a strong all-around choice for travelers, both frequent and otherwise, and well worth the $95 annual fee.
Related: Capital One Venture card review
Official application link: Capital One Venture Rewards Credit Card
Additional reporting by Ryan Wilcox and Juan Ruiz.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply
Inside: Many jobs are available in the early morning hours. This is an opportunity to make a bit of extra money before your 9-5 or when kids are at school with early morning jobs.
It’s a commonly held belief that working the early shift is not worth it. If you’re waking up at 4 am every day for work, your earnings will be drastically lower than if you worked a regular 8-hour day.
The idea of this article is to show why it could actually be worth waking up before sunrise and trying to earn more money by doing these “early” jobs in earnest.
For me, many of my jobs have always followed the non-traditional hours of a 9-5 job. Personally, that works great for me as it frees up my day for other things, pursuits, and kids.
The funniest part is I’m not a morning person by any stretch of the imagination! Yet, I make my money early in the day consistently.
So, if you are thinking, early morning jobs are not for me – wait until you actually give it a try.
In this article, you will find a list of jobs that are available for people who love working early hours as I do and want more money!
Hint, hint… It is the allure of making money that gets me motivated and out of bed!
How can I make money early in the morning?
There are a variety of early morning jobs that you can do in order to make some extra money.
You just need to find one that is a good fit for your lifestyle and personality. It’s important to pick an early morning job that you feel comfortable doing so that you don’t dread waking up early every day.
Additionally, many employers are willing to pay a premium for employees who are willing to work the early shift.
Making money early in the morning is easy if you put your mind to it.
How early is an early morning shift?
An early morning shift jobs start between 3 and 6 am and typically ends late morning or early afternoon.
This gives people the opportunity to work during the daytime and still have time for other activities in the evening.
Most start work at 5 am.
Why morning jobs are better?
Working the early shift has its perks.
For one, you’re done working by the afternoon and can run errands, schedule appointments, and socialize. Secondly, many employers are willing to pay a higher wage for employees who are willing to work during the morning hours.
Additionally, many people opt for an earlier start who want to avoid the rush hour traffic or those who have children they need to care for once the school day is over.
Plus some people work early morning hours because they want a flexible schedule, while others do it because they need the extra money. No matter your reason, there are plenty of opportunities to make money in the early hours of the day.
The 10 Best Early Morning Jobs
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The most common are shift work jobs, which require employees to work during hours that are not typically considered “normal” working hours. This can include the night shift, early morning shift, or swing shift.
There are many different types of early morning jobs. The most popular type is a full-time job, but there is also part-time, temporary, and freelance work available. Each type of job has its own advantages and disadvantages.
1. Warehouse Worker
Warehouse workers are responsible for ensuring that goods are unloaded from trucks, inspected for any damage or defects, and sorted and placed in the correct locations in warehouses or stores. They may also be responsible for preparing goods for shipment to customers.
Most of these positions are for early morning hours.
This can be a great opportunity for people who are looking for work and would prefer to work during the earlier hours of the day.
2. Barista
Barista is the term used to describe a person who performs coffee-related tasks, such as preparing and serving espresso drinks. Ideally, baristas serve beverages in establishments that offer coffee or other hot beverages.
Baristas are in high demand and typically have flexible hours. They can earn up to $15 per hour, depending on their level of experience.
Plus you have the flexibility of afternoons off after the morning rush.
3. Stock Trader
For those who want to work from their own home and have flexibility in their schedule, then you want to learn how to become a successful stock trader. Someone who buys and sells stocks to make income.
This is a highly lucrative side hustle for many people. In fact, how fast can you make money in stocks?
Personally, this is what I choose for my early morning job.
Stock Trading can be a full-time career opportunity if you have the ambition and patience to make it through the ups and downs.
Many people start trading with the hope of generating supplemental income, but it can become more than that with hard work and consistent effort.
Nowadays, the barrier of entry is very low to start trading stocks. However, you need to take the best online investing classes first.
4. Personal Trainer
Personal trainers typically offer their services at early morning hours, before most people go to work.
They help people achieve their fitness goals, whether it be weight loss, toning up, or building muscle. Personal trainers are responsible for creating workout routines and helping their clients stay on track.
Personal trainers are in high demand and the median salary is around $40,000 per year. If you have the time and availability, you can build a client base and the earning potential is endless.
5. Package Delivery
Another morning job hiring near me is package delivery drivers. These workers are responsible for the delivery of a shipment of goods from one place to another.
This position offers consistent and part-time morning hours. You will be responsible for package delivery in the area. Pay normally starts at $21 an hour plus.
6. Online Seller/Flipper
Side hustles are becoming more and more popular as people look for ways to make extra money.
One way to make some extra cash is by selling items online.
You could also get these items at local yardsales, estate sales, or donation stores and sell your items on Etsy, eBay, or Facebook Marketplace.
If this is something you are serious about, then check out Flea Market Flippers.
7. Freelancing
Freelancing is a great option for people who want to work on their own schedule. You can choose when you want to work and how much you want to work, which is great for people who want to get an early start on their day.
Freelancing can be a great way to utilize your skills and make some extra money on the side, but it’s important to keep in mind that freelancing is a business.
In fact, many people start freelancing as a side hustle in order to make some extra money but it may turn into a full-time career. In fact, according to recent studies, 1 in 3 Americans are now freelancing. This number is only going to grow in the years to come so don’t be afraid to start freelancing yourself. It may just lead to a more fulfilling career.
Learn how to earn money writing.
8. Baker
Bakers are often some of the first people to arrive at a bakery or shop. This is because many bakeries and shops open early in the morning.
Bakers are responsible for baking bread, pastries, and other items. They are required to have a fundamental understanding of baking as well as the ability to work in early morning shifts and afternoon shifts. They must also be able to handle flexible hours.
Bakers typically earn an hourly wage of around $14 an hour, but with experience and additional skills (like cake decoration), that number can go up to $20 an hour or more.
9. Online English Tutor
There are many opportunities for online English teachers to make money. One great opportunity is for early risers who want to work from home in the morning. There are many students looking for online classes at this time of day.
There are a number of companies that offer English teaching jobs to those who are certified in teaching English as a second language. The majority of these positions have you teaching students in China, Korea, or Taiwan. However, there are also opportunities to teach business professionals and executives in other countries.
If you’re looking for a way to make some extra money, becoming an English tutor for international students is a great option. You can typically expect to earn around $14-$22 per hour, depending on your experience and qualifications.
10. Flight Attendant
Flight attendants are responsible for the safety and comfort of passengers on an airplane. They must attend to passengers’ needs, provide information about flights, and ensure that all safety regulations are followed.
Flight attendants typically work long hours, often including overnight shifts, and earn an average salary of over $75,000 per year.
However, with more experience, they can make more money. Some ticket counters open as early as 4 am in order to prepare for morning departures.
Other Types of Early Morning Jobs
Those are not the only type of early morning jobs. There are plenty more morning jobs near me. You can find both part-time and full-time.
Here are more jobs to pursue.
1. Store Stocker
A store stocker is a person who stocks shelves in a grocery store. The stores they work at are typically open 24 hours and the job entails cleaning, restocking items that run out of stock, and making sure the shelves are neat.
This is typically an entry-level position in a grocery store or department store.
2. Childcare Related Jobs
Have you ever asked what are morning jobs hiring near me, then consider working with children. There are always plenty of open jobs to look after kids.
Here are some positional childcare related jobs:
Preschool teacher
Paraeducator
Substitute teacher
Daycare teacher
Nanny
Before and after-school programs
In all honestly, this can be one of the most rewarding morning jobs because kids will always make sure you laugh and smile.
3. Rideshare Driver
Yes, driving for Uber or Lyft can be a great way to make some extra money early in the morning. The hours are flexible and you can often make good money during those times.
The most popular route is heading to the airport.
Since many people book these types of rides in advance, you can earn a steady stream of income.
4. School Bus Driver
School bus drivers are responsible for transporting children to and from school. They ensure the safety of students on their bus as well as have a number of other responsibilities such as making sure all students are wearing their seatbelts and that the bus is clean.
Right now, we are facing a severe school bus driver shortage, which is affecting how children must get to school.
In many areas, you can find starting hourly wages for school bus drivers at $19 an hour.
5. Dog Walker
There are many ways to make money through Rover. You can provide pet care, pet sitting, dog walking, and more. You can also choose to offer services like delivery or house sitting. The options are endless!
This is one of the easiest ways to make money.
6. Truck Driver
A truck driver drives a semi-trailer truck loaded with freight. They drive the freight to its destination and unload it when they arrive.
For truck drivers who want to save money on fuel or have good mileage, the best time to drive is during the early morning hours. This is when there is less traffic and you can avoid rush hour.
Truck drivers can make a lot of money. In fact, they can earn up to $35 an hour. That’s a lot of money for early morning work.
Don’t want to drive? Then, become the middleman. Learn the exact freight broker salary.
7. Landscaper (Yard Work)
If you’re an early riser and you’re looking for a job that gets you outside, landscaping is a great option. It’s hard work, but it can be very rewarding.
It might be hard to get your services as there are already established landscapers in the area. If you don’t have a business, see if there is a business that needs lawn work done and if so, offer your services. You can also go door-to-door asking people if they need their yards done; just make sure you have a good sales pitch ready!
This seasonal job is great to do in the morning because it tends to be cooler and there’s more daylight. The pay usually ranges from $10 to $20 an hour, so it’s a good way to make some extra money.
8. Chef
Chefs are some of the most hard-working professionals in the culinary industry.
They often start their day at 4 am, preparing for the onslaught of orders and tasks that come with a busy kitchen.
While many chefs have formal training from culinary schools, there are also many ways to learn the trade. Some chefs start out as dishwashers and work their way up the ladder, while others may take online courses or watch cooking shows to learn new techniques.
The average salary for a chef is just over $50,000 a year.
9. Mail Carrier
Mail carrier and other postal worker jobs are excellent for early risers because there is a lot of work that goes on behind the scenes before delivering mail.
These types of jobs offer some excellent benefits that can be harder to find these days.
Mail carriers are nearly always employed by the United States Postal Service, but they can also be hired independently.
10. Factory Worker
Factory work can be a great option for people who are looking for full-time or part-time work. The hours are usually regular, and the job doesn’t require many if any formal qualifications. However, you may need some experience in the field and a high school diploma.
However, if you have practical skills such as forklift driving, you can earn more by picking up shifts in the mornings, nights, or weekends. The work is physically demanding so you’ll need to be in shape and stand or sit in one position all day long.
Working the early shift at a factory can be tough, but it also has its benefits. The pay can vary a great deal depending on the company, so it’s important to do your research. However, if you’re looking for work and don’t mind getting up early, then this might be the perfect opportunity for you.
11. Part-time Retail Employee – Early Morning
Part-time Retail employees working early morning shifts will be paid for their time. There are always companies looking to hire for early morning jobs.
These are great for stay-at-home moms. In fact, the employee discount can be a nice bonus for working there.
This is a perfect low stress job after retirement.
12. Gig Worker
Gig work is a term used for short-term, contract-based work. It can be a great way to have more control over your schedule and to make some extra money on the side. There are many different types of gig work available, so you’re sure to find something that suits your skills and interests.
Those who need to run errands or get an early start on their day may use gig work apps like Grubhub, Postmates, DoorDash, and Uber Eats. Additionally, you can increase your chances of getting gigs by downloading all the relevant apps and clicking on the one that seems to produce the best results.
13. Farm Worker
As you can imagine, farm work can be difficult, but if you’re someone who loves working outdoors and enjoys physical labor, then this may be a great career for you.
Farm workers are typically hired based on their qualifications and experience.
If you can offer the help local farmers need, you should be a great fit for the position. Farm work is often physical labor, so make sure you’re physically prepared for the job before applying.
14. Morning Radio DJ
Morning radio DJs reflect the lives of their listeners, who may be early risers or working professionals. The job involves playing music and talking about topics that are important to the listener in order to help them wake up and start the day.
The main goal of morning show DJs is to keep listeners tuned into their station while providing a fair amount of entertainment.
Starting out your career in radio can be a great way to get started in the industry. Many DJs start their careers at small community or college radio stations and then move on to bigger stations as they gain more experience. The morning time slot is from 6 AM to Noon, which is a great opportunity to reach a large audience.
15. Cleaner
There is a high demand for cleaning services and cleaners can earn up to $22 per hour, plus tips. Some of the highest earners are making over $1000 a week.
This is one type of service that is not going away and the barriers to entry are extremely low. The average cost a house cleaner charges are $50-90 for two hours of work.
16. Online Surveys
That’s the beauty of online surveys – you can do them at any time of the day that works for you.
You don’t need to focus too much on taking them, either; in most cases, you can do other things while completing the survey. This means that they’re a great way to make some extra money without having to put in a lot of effort.
The best surveys are normally released first thing in the morning and only available for a limited time. That’s why it’s important to do online surveys as soon as they’re available. This will give you the best chance of getting rewarded for your efforts.
Best Online Survey Companies:
Where to find morning jobs near me?
Some tips for finding early morning jobs include using job search engines, checking job boards, and networking with friends and family. It is also important to be prepared for the interview and to have a strong resume.
If you’re looking for a job that starts early in the morning, you’re in luck! There are many jobs available that start at 5 am, 6 am, 7 am or 8 am. You can find these jobs by searching online or by going to your local job center.
It’s never too early to start looking for a job.
In fact, many people start their job search well before they’re actually ready to start working. This is because it can take some time to find the right job for you. And remember, it’s important to keep learning and earning money so you can be happy!
The best way to find an early morning job is to search online.
What to do when you land an early morning job
So you’ve landed an early morning job. Congratulations! This can be a challenging but rewarding experience when you first start out.
Prepare what your days will look like with your early morning job.
If you are adding a second job, make sure you are fully rested to take on both jobs.
Tips for surviving the early shift
When you start your early morning job, the most important thing is to get a good night’s sleep.
In fact, most of the early birds actually follow the billionaire morning routine to get in their flow.
Here are a few tips to help make the most of it:
Get plenty of rest the night before. It’s important to be well-rested for those early morning shifts.
Arrive on time. Punctuality is key in any profession, especially so when working the early shift.
Stay focused and work hard. Those early hours can be tough, but it’s important to stay productive and get the job done right.
Take breaks as needed. It’s important to stay hydrated and quick breaks to recharge your batteries.
Enjoy your free time wisely. The evening hours are precious, so make sure to use them wisely and enjoy your time off responsibly.
What morning time jobs interest You?
Early morning jobs are a great opportunity for those looking to make a bit of extra money.
They are also a great way to get your foot in the door with a company you are interested in working for.
Plus you don’t have to debate is a business degree worth it as many of these jobs don’t require one. In fact, find low-stress jobs that pay well without a degree now.
In the post, we detailed plenty of early morning jobs. Since you are getting up earlier than most people prefer, make sure you pick an interest that can become a life-long career.
You want to be passionate about what you are doing early in the morning!
Especially because you don’t want to start only to say… “I don’t want to work anymore.”
Be sure to dress for success, be punctual, and be prepared to work hard and you will be sure to land an early morning job.
Know someone else that needs this, too? Then, please share!!
By Mike Piper8 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited January 10, 2014.
People often ask me to point them to a decent online retirement planning calculator. I never do.
You see, I don’t trust such calculators.
It’s not that their math is wrong. (At least, not usually.) The problem is that their calculations are often based on shoddy assumptions and unknowable variables.
You Know What They Say about Assuming…
For example, what rate of return does the calculator assume for your portfolio? Is it reasonable? Or, perhaps, was the calculator programmed to assume that future returns will equal past returns (thereby ignoring the possibility that the U.S. economy won’t have the same explosive growth over the next century that it did over the last)?
And what assumptions does the calculator make about future tax rates? From what I’ve seen, most calculators assume that either:
All income will be taxed at a flat rate (usually 25% or 28%), or
Tax brackets will continue to look the same as the 2013 tax brackets all the way into the future.
While I certainly don’t know what tax rates will look like three decades from now, I doubt that either of one of those assumptions will turn out to be correct.
And does the calculator account for sequence of returns risk? A portfolio averaging a 5% annual return is very different from earning a 5% return every year. If the calculator doesn’t account for that fact, it’s going to significantly underestimate the amount of money you’ll need to retire safely.
What’s Better than an Online Calculator?
If you’ve taken the time to educate yourself about investing, then you probably don’t need an online calculator. A simple excel spreadsheet will function at least as well. (And you get to choose your own assumptions!)
Alternatively, if you haven’t taken the time to learn about investing, there’s no way for you to judge whether the assumptions that went into the calculator’s projections are reasonable.
In other words, there are two routes you can take:
If you want to be a do-it-yourself investor, super. But rather than rely on online calculators, you’ll need a deeper level of understanding if you want to be successful.
If you don’t want to go it alone, that’s fine too. But in that case, an online calculator isn’t what you need. What you need is a qualified financial advisor.
In my opinion, such calculators are only useful for young investors who are so far away from retirement that none of the relevant variables are known yet. In other words, a completely blind guess from a calculator is almost as good as one from an advisor.
About the Author: Mike Piper writes at Oblivious Investor, where he provides plain-English explanations of topics like Roth IRA rules and 401k rollovers.
Man, this card looks amazing! 4x cash back, $100 in annual hotel credit, and…
Oh, wait – there’s a $95 annual fee.
Bummer.
Well, hang on – maybe it’s still worth it? How can you tell? Will the perks and benefits justify the fee? Or is a no-fee card always the way to go?
To find out, let’s investigate paid rewards cards – why some cost $95 and others cost $695 (yeah…I know) – what you get for your money, and how much you really need to spend for a paid card to make sense.
What’s Ahead:
What are annual fee credit cards?
Source: fizkes/Shutterstock.com
As the name implies, annual fee credit cards are rewards cards that typically cost anywhere from $50 to $695 a year to use.
Why do credit card issuers charge annual fees for some cards and not others?
Credit card issuers typically charge an annual fee to help cover the costs of the perks included with the card. Despite the gobs of money these banks and card issuers make, even they can’t afford to offer every single cardholder free lounge access and $300 in travel credit each year.
Annual fee credit cards usually include some combination of the following over no-fee cards:
Higher cash back.
Higher redemption bonuses (e.g. points are worth 1.5x when redeemed for travel).
Better welcome bonuses ($500 versus $200).
Statement credits (e.g. $300 annual hotel credit).
Perks and bonuses (VIP lounge access, 24/7 travel concierge, etc.).
Why are some fees so low ($35-$95) while others are insanely high ($695)?
A $500 card will typically include more statement credits than a $100 card.
Let’s look at two, seemingly identical travel cards:
The Chase Sapphire Preferred® Card costs $95 a year, offers 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 when you redeem through Chase Ultimate Rewards®., up to 5x points back on travel-related expenses, and more.
The Chase Sapphire Reserve® Card costs an eye-watering $550 per year, offers a 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $900 toward travel when you redeem through Chase Ultimate Rewards®., and up to 10x points back on travel-related expenses, and more.
Sure, the fancy-schmancy Chase Sapphire Reserve® Card has more cash back (10x) and a higher redemption bonus within Chase Ultimate Rewards® (1.5x vs. 1.25x) than its sibling, but neither of those justifies a $455 price difference.
That is, until you consider the former’s annual cash bonuses. The Chase Sapphire Reserve® Card includes the following credits:
$300 Annual Travel Credit.
$100 Global Entry or TSA PreCheck® Fee Credit (every four years).
So even though the Chase Sapphire Reserve® Card costs more than a new mountain bike, it starts to make a little more sense if you plan to use all of the included credits. $550 – $300 – $100 = $150, which is just $55 more than the Chase Sapphire Preferred® Card.
In short, most cards with fees over $100 should come with ample bonus credits to offset the fees.
Can you ever get an annual fee waived?
It may surprise you to hear that yes, even credit card annual fees are negotiable. You may not always negotiate successfully, but you can always try.
Here are some tips for getting your card’s annual fee waived.
Negotiate with your existing card company
If you already have a no-fee card and are considering upgrading to one of your card issuer’s paid annual cards, ring them up and just ask nicely. They may be willing to waive your annual fee for the first year.
Ask them to price-match with another card
Let’s say the annual fee credit card you really want costs $295 for the year, and you notice that it offers similar benefits to a competing no-fee or low-fee card. Call the card issuer and ask if they’d be willing to price match with the lower fee card – or better yet, waive the fee entirely.
Chat with the retention department
If you already have an annual fee credit card and are trying to get your fee waived or reduced, and the agent on the phone isn’t playing ball, you can always ask to just cancel the card.
At that point, one of two things will happen:
You’ll be routed to the retention department, which is much more likely to bend to your requests.
The agent on the phone will proceed to cancel your card.
If you don’t want to cancel your card, you may then have to suffer a moment of awkwardness when you tell the agent “actually, NVM” – so keep that in mind if you don’t like having your bluffs called!
When is it maybe worth paying a credit card annual fee?
Source: Victor Josan/Shutterstock.com
You’ll earn more cash back than with a no-fee card – accounting for your annual fee
Let’s say you’re considering a card that charges a $95 annual fee but offers 3x cash back.
Your first inclination may be to calculate how much you need to spend to offset your fee with cash back. So that’s:
$95 / 0.03 = $3,167
You easily spend that much in a year, so it seems like a good deal.
But hang on – remember, you’re not just trying to offset your fee – you’re trying to earn more than you would with a no-fee card.
By the time you’ve spent $3,167 with a no-fee card with 1.5x cash back, you’ve already earned:
$3,167 x 0.015 = $47.50
Not until you spend twice that – $6,333 – does the annual fee credit card “catch up” to the no-fee card and start earning you more.
In short, keep in mind that once your cash back covers your fee, you still have a lot more spending ahead of you to catch up to a garden variety 1.5x card.
The card offers a steep welcome bonus to cover its fees
Thankfully, many annual fee credit cards have big, juicy welcome bonuses to cover their annual fees – oftentimes for several years over.
Take, for example, the American Express® Gold Card. Sure, it charges a $250 credit card fee – but it also has a welcome bonus of 60,000 Membership Rewards® Points worth between 0.6 and 2 cents a pop when applied to travel through certain partners.
You’ll get a statement credit for things you’re already paying for
The first time I saw the credit card fee for The Platinum Card® by Amex, I could hardly believe it. $695 a year? Who’s falling for this?
But then, the little Amex fairy told me to keep reading, and amazingly, The Platinum Card® started to make sense.
In addition to up to a 100k welcome bonus and up to 10x Membership Rewards® Points on select purchases, The Platinum Card® offers:
$200 Hotel Credit.
$200 Airline Fee Credit.
$200 Uber Cash.
$240 Digital Entertainment Credit.
$100 Global Entry or $85 TSA PreCheck®.
And more.
Before talking points and perks, the statement credits alone account for $940 worth of bonus cash back.
If you’re already spending $940 within those areas, then The Platinum Card®’s $695 annual fee doesn’t just make sense – it’s a discount.
The card has perks and bonuses that make your life easier
In most cases, a credit card’s perks alone probably aren’t worth paying an annual fee – but if you’re seeking a tiebreaker between a fee card and a no-fee card, they may just tip the scales.
Annual fee credit card perks often include:
Travel insurance.
Lounge access.
24/7 travel concierge assistance.
And more.
For example, among other things, the Delta SkyMiles Gold American Express Card always gives you Main Cabin 1 Priority Boarding, so you can stash your stuff and just relax sooner on every flight. That perk alone may not be worth $250 a year, but anything that lowers your stress is worth something!
When is it not worth paying a credit card annual fee?
You won’t earn enough cash back to cover the fee
Remember, most no-fee cards these days offer 1.5x cash back. The Citi® Double Cash Card actually offers 2x cash back (plus a host of other benefits).
For that reason, it’s becoming harder for annual fee credit cards to compete with their pro bono brethren. The annual fee card likely won’t justify itself on cash back rewards points alone, unless you spend a lot.
You’ll need to also consider the perks and bonuses attached.
The perks and bonuses aren’t worth the annual fee
The Luxury Card™ Mastercard® Black Card™ is a textbook example of a paid card that just isn’t worth anywhere near its annual fee. Its chief bonus – a $100 airline credit – doesn’t come close to covering the outrageous $495 sticker price.
Keep in mind, too, that the perks, bonuses, and statement credit provided by an annual fee rewards card are only worth cash if you use them. I myself have forgotten to use my statement credit in the past, which is just leaving money on the table.
Your credit score isn’t high enough
This one’s simple – if your credit score is below 690, you may not even qualify for an annual fee rewards card in the first place.
But wait a second – if you’re trying to pay for a credit card, why would the credit card company stop you from giving them money?
Annual fee rewards cards are designed to attract big spenders – specifically, big spenders who have a track record of paying their bills on time. That’s why credit card companies require a higher credit score for paid cards – around 690, compared to 660 for a regular, no-fee rewards card (though numbers vary by card issuer).
If you’d like to learn more about your credit score, check out How Credit Works: Understand The Credit History Reporting System. And if you’re trying to bump your numbers so you can successfully apply for a fancy paid card, we can help you there, too – check out How To Improve Your Credit Score, Step By Step.
You need 0% APR on purchases or balance transfers
You should know that annual fee rewards cards rarely, if ever, offer 0% APR incentives.
Again, that’s because these cards are designed to attract big spenders – not big savers or debt consolidators. In fact, most annual fee credit cards hammer you with the industry’s maximum APR right out the gate – usually around 29.99% – meaning there’s zero forgiveness for missing a payment.
If you think you might need some help with old debt, new debt, or simply may miss a payment in the next year or so, you should absolutely stay away from a paid rewards card. Instead, consider our list of the Best 0% APR Credit Cards and Best Balance Transfer Cards.
The card fits the lifestyle you want – not the one you have
Don’t make the same goober mistake I did!
From 2013 to 2015 I had a certain travel rewards card for work that commanded a $95 annual fee. And boy, was it worth it – my company required us to put all travel and dining charges on our own card (to be reimbursed later), so I was racking up the points.
Then, when I left my job in 2015… I decided to keep my card a little longer, assuming I’d keep traveling.
Instead, I settled in, wrote my book, and forgot to cancel my card. Basically, $95 down the drain.
Once I realized my mistake, I learned a valuable lesson in money management:
Pick the credit card that fits the lifestyle you have – not the one you think you’ll have.
Questions to ask yourself before paying a credit card’s annual fee
Source: alexialex/Shutterstock.com
To consolidate the two previous sections, here’s a “gut check” questionnaire to see if a paid card is right for you:
Is my credit score high enough to apply for this card? Or do I need to bump my numbers?
Do I need 0% APR on purchases or a balance transfer? If so, a paid card typically doesn’t offer these and isn’t a fit – I should check out the top-ranked 0% APR cards for new purchases or balance transfers instead.
Why am I considering this card? Does it fit my existing spending habits? Or will it encourage me to spend more when I should be saving?
Will the welcome bonus offset its annual fee? Are the points worth a penny each, or less? And will I spend enough to trigger the welcome bonus in time (e.g. $4,000 in 3 months)?
Is it really better than a no-fee card?Now that no-fee cards offer up to 2% cash back on all purchases, is this paid card really worth it?
What is the combined statement credit worth?And will I even use it?
Will I really use this card for longer than a year?Or should I set a calendar note in 11 months to cancel it before paying the fee again?
When in doubt, stick with a no-fee rewards card. Like Mazdas and Toyotas, they truly are catching up to their “luxury” counterparts in terms of value and benefits for way less money.
For a list of the top-ranked no-fee rewards cards, check out Best No Annual Fee Credit Cards – Don’t Pay A Dime To Get Another Credit Card.
Tips for getting the most out of your no-fee card
They say that before you spend $35,000 on a shiny new car, you should spend $35 washing and waxing your old car first. Oftentimes, a good spit-shine is all you need to appreciate the car you already have.
Similarly, if you’re considering upgrading from a no-fee card to a paid card, try spending a little time with your no-fee card first.
Maximize your cash back rewards – Does your card offer rotating 5x cash back rewards categories like the Chase Freedom Flex℠? If so, be sure to both activate and maximize those rewards.
See what hidden perks your card has – Even no-fee cards offer a surprising amount of perks these days. Capital One VentureOne Rewards, for example, offers a free Auto Rental Collision Damage Waiver, free Travel Accident Insurance, automatic Extended Warranty Protection, and even lounge access – all for $0.
Consider another no-fee card first –If you still feel that your no-fee card isn’t meeting all of your needs or maximizing your cash back, consider another no-fee card before you invest in a paid card. As illustrated above, the Capital One VentureOne Rewards Credit Card is an excellent travel card with no fee that you can use specifically for booking flights and hotels without worrying about covering your annual fee.
Summary
So, should you pay for a rewards credit card?
Probably not. No-fee cards are just so generous with cash back and perks these days that most paid cards just aren’t worth it unless you’re spending gobs of money.
But if that’s you, do the math – calculate how much you’ll spend on a no-fee card and its equivalent paid card, and determine how much money you’ll save and cash back you’ll earn. If a paid card truly pays you back in spades, it might be worth it.
But for most of us, a no-fee rewards card will make us plenty happy.
For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
The information related to the United Gateway Credit Card has been collected by Money Crashers and has not been reviewed or provided by the issuer of this card.
Earning frequent flyer miles from your credit card usually requires paying for a premium product, and there aren’t too many airline credit cards that have no annual fee.
The United Gateway Credit Card is one of those rare airline cards that has no annual fee. But as you might expect, it comes with fewer benefits than its more expensive competitors. That may or may not be a dealbreaker for you — read on to find out.
What Is the United Gateway Credit Card?
The United Gateway Card is offered by Chase as a way to earn United Airlines MileagePlus frequent flier miles, with no annual fee.
You start out with a modest sign-up bonus: Earn 20,000 bonus miles after you spend $1,000 on purchases in the first 3 months your account is open.
From there, you earn 2x miles on United purchases, at gas stations and on local transit and commuting expenses. Those expenses include rideshare services, taxicabs, train tickets, tolls, and mass transit. As with most cards, you only earn one mile per dollar spent on other transactions.
Beyond the rewards program, the United Gateway Card has few benefits, but they can be valuable.
First, you receive additional access to award seats at the lowest, “Saver” level, an important benefit reserved for United MileagePlus cardholders and United customers with elite status. You also receive 25% back on food, beverages, and Wi-Fi on board United-operated flights. And you get up to $1,500 in trip cancellation and trip interruption coverage, an auto rental collision damage waiver policy, extended warranties on select items, and purchase protection coverage on select purchases.
There’s no annual fee for this card and no foreign transaction fees. This makes it a great choice for international travel. Finally, you enjoy a 0% intro APR for 12 months on new purchases after account opening.
What Sets the United Gateway Credit Card Apart?
The United Gateway Credit Card is different not just because it has no annual fee, but also because it provides a few significant benefits and multiple opportunities to earn bonus miles.
Double miles. You earn 2x miles on United purchases, at gas stations, and on local transit and commuting expenses.
Travel insurance protections. These include rental car insurance, trip cancellation and interruption coverage.
Purchase protections. These include theft and damage coverage and extended warranty protection.
Low fees. This card has no annual fee and no foreign transaction fees.
Introductory financing. You enjoy a 0% intro APR for 12 months on purchases, though not balance transfers.
Key Features of the United Gateway Credit Card
The most important features of this card are low fees, bonus miles and cardholder benefits.
Sign-Up Bonus
Earn 20,000 bonus miles after you spend $1,000 on purchases in the first 3 months your account is open.
Earning Rewards
This card offers plenty of opportunities to earn bonus miles:
2x miles for United purchases
2x miles at gas stations
2x miles on local transit and commuting expenses
1x mile on all other eligible purchases.
“Local transit and commuting expenses” covers a wide range of purchases, including:
Rideshare services
Taxicabs
Train tickets
Tolls
Mass transit
Redeeming Rewards
You can redeem your accumulated miles for award flights operated by United and its partners.
Exactly how much value you get from them is a moving target. That’s because United no longer publishes an award chart and has been known to change how much it charges for particular flights without notifying anyone. But in general, you need 80,000 to 100,000 miles for a one-way, business class ticket to Europe. You can get by with about half that if you travel in economy.
0% Intro APR Promotion
This card offers 12 months of 0% APR introductory financing on new purchases. After that, variable regular APR applies.
Important Fees
There’s no annual fee for this card and no foreign transaction fees imposed on charges processed outside of the United States.
Credit Required
This card requires good or better credit to qualify. If your FICO score is much below 700, then you’ll likely have trouble being approved.
Advantages
This card’s advantages are designed for occasional United flyers rather than frequent travelers who care about high-end perks.
Expanded access to the United Saver award level. This is a key benefit that allows you to get much more from your miles when you redeem for award flights.
No annual fee an foreign transaction fees. This card’s biggest claim to fame is that it has neither of these fees.
Good bonus categories. There’s a lot of ways to earn double miles with this card. That isn’t what you’d normally expect from a no-fee card.
Good travel insurance and purchase protection benefits. Many credit card issuers aren’t offering benefits any more, so this is especially nice to see.
MileagePlus partners and policies. You can redeem your United miles for flights on its numerous Star Alliance and non-alliance partners. United also eliminated change and cancellation fees on awards, so you’re free to book a ticket when you find a good deal and cancel it later if it doesn’t work out.
0% APR introductory financing on purchases. Very few airline cards come with 0% intro APR financing, so this counts as a win for those planning big purchases (including vacations) soon after account opening.
Disadvantages
This card lacks many of the features that you might expect from a rewards card.
United devalues its miles. United eliminated its award charts several years ago, which means that it can always charge more miles for awards whenever it feels like it. For example, United recently started charging up to 50% more miles for many of its award flights to Europe without any prior notice. Unfortunately, you can’t count on the price you see now being available when it comes time to redeem your miles.
No free checked bags. Pretty much all airline credit cards with an annual fee offer a free checked bag, but not this one.
Low sign-up bonus. Most airline credit cards with an annual fee offer at least 50,000 miles as a sign-up bonus. The Gateway Card’s bonus is worth less than half that amount.
How the United Gateway Credit Card Stacks Up
The closest competitor to the United Gateway Card is the American Airlines AAdvantage MileUp Card from Citi. See how they compare before you apply for either.
United Gateway Credit Card
American Airlines AAdvantage® MileUp® Mastercard®
Annual Fee
$0
$0
Sign-Up Bonus
20,000 miles
10,000 miles
Rewards Rate
Up to 2x miles
Up to 2x miles
0% Intro APR
12 months on purchases
None
Foreign Transaction Fee
None
3%
Credit Needed
Good or better
Good or better
Final Word
The United Gateway Card is a basic airline credit card, but it still manages to give you more than you would expect from a stripped down version of the more premium cards. It does this by offering expanded award availability, decent travel insurance and purchase protection and many opportunities to earn bonus points. And if you can take advantage of the 0% APR offer, then it’s really worth considering.
At the same time, you’ll get a less valuable sign-up bonus and no free checked bags. Both of those are perks you should reasonably expect from any airline credit card with an annual fee.
What you’re left with is a card that’s well suited for someone who flies United a few times a year. But if you find yourself flying the friendly skies more often than that, then you should look into the United Explorer, Quest, or Club Cards, all of which have annual fees.
The Verdict
Our rating
United Gateway℠ Credit Card
The United Gateway Card is a frequent flyer credit card with no annual fee and fewer perks than more expensive airline cards. However, it does have a few strong bonus categories, and some valuable cardmember benefits. That makes it a competitive card for occasional travelers.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Jason has been writing about personal finance, travel, and other topics on blogs across the Internet. When he is not writing, he has a career in information technology and is also a commercially rated pilot. Jason lives in Colorado with his wife and young daughter where he enjoys parenting, cycling, and other extreme sports.
One important distinction between advanced award travelers and those newer to the world of points and miles is how each group searches for award space.
Those with experience earning and burning points and miles will carefully study various partner award charts, looking at where to transfer their flexible points and what sweet spots they can utilize. Meanwhile, beginners may log into their United MileagePlus or American Airlines AAdvantage account, search for the destination they want to visit and book the first award they see regardless of price or convenience.
While anyone can accrue a good amount of points by earning welcome bonuses on top travel credit cards, this difference in redemption strategies is huge. Using the right partner program to book your award could save you as much as 50%, depending on the carrier and route.
With major programs switching to dynamic pricing and 500,000 miles for one-way business-class flights to Europe becoming increasingly common, it’s more important than ever to know the best ways to maximize your points and miles.
Today, we’ll look at some of the best value sweet spot award redemptions. While this list is not exhaustive, if you plan to travel to one of these destinations and have points at your disposal, these are surefire ways to get an excellent redemption value every time. If you’re new to the world of points and miles and any of these destinations interest you, you can use this as a road map to instant success.
ANA premium cabins to Japan with Virgin Atlantic points
Virgin Atlantic’s partner award chart for ANA is one of the best sweet spots out there. While availability can be hard to come by, and the first-class rates recently increased, this remains an incredible use of Virgin points.
The sweet spot
For this sweet spot, it’s important to know that the prices differ if you’re flying from the West Coast versus the central and eastern U.S. You can also book one-way flights for half the round-trip prices noted below.
ANA’s new business class is called “The Room,” and its new first class is referred to as “The Suite.” Both are excellent products that we are big fans of here at TPG — and flying in either means you can visit the always-popular Japan.
You’re allowed an open-jaw routing as long as you stay within the same region of the U.S. (West or Central/East). This means you can mix and match airports wherever you find award space.
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For example, flying from Washington, D.C.’s Dulles International Airport (IAD) to Tokyo’s Narita International Airport (NRT) and then returning from Tokyo’s Haneda Airport (HND) to New York’s John F. Kennedy International Airport (JFK) would be a valid itinerary, costing only 95,000 points in business or 170,000 points in first class.
Availability can be scarce — you will have the best luck booking 12 months in advance (as soon as the seats are loaded) or last minute (less than 14 days before departure when unsold seats are often loaded for awards). Your best bet for finding availability is to search for it using the United MileagePlus website and call Virgin’s Flying Club to book.
Related: Feels like first class: Flying ANA The Room business class from LA-Tokyo
Earning Virgin Atlantic miles
Virgin Atlantic miles are among the easiest to earn. You can transfer points from Chase Ultimate Rewards, American Express Membership Rewards, Citi ThankYou Rewards, Capital One, Bilt Rewards and Marriott Bonvoy to Flying Club. Keep an eye out for transfer bonuses from Amex or Citi that could drop your costs even further.
Related: How to redeem Chase Ultimate Rewards points for maximum value
Iberia business class to Spain with Avios
Iberia Avios can unlock one of the cheapest ways to fly to Europe in business class.
The sweet spot
The key to this sweet spot is to fly a nonstop, Iberia-operated flight of 3,001 to 4,000 miles on off-peak dates (check Iberia’s peak and off-peak calendar). This is because Iberia uses a distance-based award chart for its flights.
Iberia operates several transatlantic flights that fall into the 3,001- to 4,000-mile distance band. As such, you can book Iberia flights between the following city pairs for just 34,000 Avios, plus modest taxes and fees:
Boston Logan International Airport (BOS) to Adolfo Suárez Madrid-Barajas Airport (MAD).
BOS to Josep Tarradellas Barcelona-El Prat Airport (BCN).
JFK to MAD.
JFK to BCN.
IAD to MAD.
While flights from Chicago’s O’Hare International Airport (ORD) to MAD are slightly outside this range, they also price at 34,000 Avios one-way in business class.
Earning Avios
There are three primary ways for U.S.-based travelers to earn Iberia Avios:
Related: 4 versions of Avios: When to use Aer Lingus, Qatar Airways, Iberia and British Airways
Qatar Airways Qsuite business class to the Middle East or Africa with AAdvantage miles
Qatar Airways has won numerous awards for its innovative Qsuite business-class product, regarded as one of the world’s best business-class experiences.
The sweet spot
If you don’t live near a Qatar Airways gateway, you may be able to find an itinerary that allows you to connect domestically in the U.S. for the same cost.
You can search for award availability online, even if you don’t have the necessary miles. Just note that award space may be difficult to come by, so check back regularly if you can’t find flights on your desired route.
Earning AAdvantage miles
There are a few American Airlines cobranded cards you can use to quickly accrue AAdvantage miles.
The information for the CitiBusiness AAdvantage Platinum Select Mastercard and AAdvantage® Aviator® Red World Elite Mastercard® has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
You can also transfer Marriott Bonvoy points to American Airlines AAdvantage at a 3:1 transfer ratio. Additionally, if you pay your rent with Bilt Rewards or spend on the Bilt Mastercard® (see rates and fees), you can transfer your points 1:1 to AAdvantage. Points transfer from Bilt to AAdvantage instantly.
Related: Best uses of American Airlines miles
Cathay Pacific business class to Asia or Africa with Alaska miles
The Alaska Airlines Mileage Plan used to be one of our favorite airline programs, as the program once offered some incredible award flight sweet spots. Sadly, Alaska has removed many of its award deals, but Cathay Pacific is one of the remaining Mileage Plan sweet spots that you should book before it disappears.
The sweet spot
Flying with Cathay Pacific from the West Coast to its Hong Kong International Airport (HKG) hub will cost 30,000 miles each way in economy. If you can find available seats in premium cabins (which is difficult), you’ll pay 50,000 miles per person in business class and 70,000 miles per person in first class.
You can also continue on to several points in Asia, such as various destinations in India and Dubai International Airport (DXB), paying just 50,000 miles per person for a one-way flight in economy. Expect to pay 62,500 miles for a one-way business-class ticket and 70,000 miles for a first-class ticket.
Unfortunately, Cathay Pacific’s premium cabin seats are extremely tough to find. If you find availability, we recommend booking immediately. If you need to cancel your ticket later, Alaska will redeposit the miles and refund the taxes and fees without penalty.
Earning Alaska miles
Alaska miles aren’t the easiest to earn, as they are not linked to any major transferable program. Thankfully, Alaska’s broad list of airline partners means you can earn when flying with many different airlines.
Alaska Airlines also has two cobranded credit cards with Bank of America.
Alaska Airlines Visa® credit card: Get a $100 statement credit, 50,000 bonus miles and Alaska’s Famous Companion Fare from $122 ($99 fare, plus taxes and fees from $23) with this offer. To qualify, make $2,000 or more in purchases within the first 90 days of opening your account.
Alaska Airlines Visa® Business card: Get 50,000 bonus miles, a $100 statement credit and Alaska’s Famous Companion Fare from $122 ($99 fare, plus taxes and fees from $23) with this offer. To qualify, make $3,000 or more in purchases within the first 90 days of opening your account.
Related: Which credit card should you use for Alaska Airlines flights?
Short-haul flights on British Airways with Avios
With dynamic pricing in some programs showing up to 100,000 miles for a single flight in economy, British Airways is a good alternative. The Executive Club program offers low prices on short flights.
The sweet spot
British Airways only charges 4,750 Avios each way for off-peak flights it operates from London to destinations up to 600 miles away. This includes destinations in Ireland, Scotland, Denmark, France, Germany, Austria and Italy. Taxes will set you back just $31 (this can vary depending on current exchange rates), though you also have the option to reduce this to $1 by redeeming 9,250 Avios.
Award flights include full-size cabin baggage and checked baggage.
Earning British Airways Avios
The easiest way to earn a meaningful number of Avios for everyday spending is by applying for the British Airways Visa Signature Card. You’ll earn 75,000 Avios after you spend $5,000 on purchases within the first three months of account opening. TPG values Avios at 1.5 cents each, making the full bonus worth $1,125.
The British Airways Visa Signature has a $95 annual fee and earns 3 Avios per dollar spent on purchases with British Airways, Aer Lingus, Iberia, and Level. Plus, you can earn 2 Avios per dollar spent on hotel accommodations when purchased directly with the hotel. All other purchases earn 1 Avios per dollar spent.
British Airways is also a transfer partner of Capital One, Chase Ultimate Rewards, American Express Membership Rewards, Bilt Rewards and Marriott Bonvoy, making Avios one of the easiest currencies to earn.
Points transfer from Capital One, Chase, Bilt and Amex at a 1:1 ratio (in addition to occasional transfer bonuses of up to 40%), while Marriott Bonvoy points transfer to Avios at a 3:1 ratio. Plus, you’ll get a 5,000-Avios bonus for every 60,000 Marriott points transferred.
Related: 5 reasons why you should care about British Airways Avios
Air France-KLM Flying Blue promo awards
From paid ticket sales to redemption promotions, there are endless opportunities to book travel at a discount. However, few sales are as reliable as the Promo Rewards we see each month from Air France-KLM Flying Blue.
With Flying Blue adopting dynamic pricing with highly variable rates in all classes, this monthly offer is an excellent way to save on award travel.
The sweet spot
These monthly Promo Rewards regularly appear on the Flying Blue website and offer discounts on flights to and from select cities or region pairs. All discounts are only bookable through the end of the month, and there’s a set travel window.
Each month, the destinations, discounts and classes change, so keep an eye out for what is currently available. In the past, we have seen deals like:
39,000 miles in business class from Miami International Airport (MIA) to London’s Heathrow Airport (LHR), flying KLM.
22,500 miles in premium economy class from IAD to Munich Airport (MUC), flying Air France.
11,250 miles in economy from ORD to Stockholm Arlanda Airport (ARN), flying Air France.
Earning Flying Blue miles
Boosting your Flying Blue balance is easy since the program partners with all major transferable points currencies.
You can transfer points at a 1:1 ratio from American Express Membership Rewards, Bilt Rewards, Capital One, Chase Ultimate Rewards and Citi ThankYou Rewards. You can also transfer Marriott points at a 3:1 ratio, with a 5,000-mile bonus for every 60,000 points you transfer.
Based on our tests, Amex, Bilt, Capital One, Chase and Citi transfers should post almost instantly. However, that wasn’t the case with our test transfer from Marriott, which took three days to arrive in our Flying Blue account.
Related: Is KLM premium economy worth it on the 787 Dreamliner?
Domestic United flights with Turkish Airlines’ Miles&Smiles
United’s dynamic pricing means you won’t find a set price for flights booked via the MileagePlus program. However, when there is saver-level inventory (the X fare class for economy or the I fare class for business), Turkish Airlines’ Miles&Smiles becomes one of the best options available.
The sweet spot
For any domestic flight in the U.S., including to or from Hawaii, Turkish requires just 7,500 miles each way in economy. If you’re lucky enough to find domestic first class, those award tickets only cost 12,500 miles each way.
For example, we found a round-trip ticket in economy from San Francisco International Airport (SFO) to Hawaii’s Ellison Onizuka Kona International Airport at Keahole (KOA) that only requires 15,000 Turkish miles plus $11.20 in taxes and fees.
This exact same flight would be 25,800 United miles.
The key to this sweet spot is finding saver-level inventory. You can search for these fares on United.com, though note that award tickets in any fare class other than X for economy and I for business class are not bookable through partner programs.
Earning Turkish miles
Miles&Smiles partners with a trio of programs: Capital One, Citi ThankYou Rewards and Bilt Rewards. You can transfer rewards from any of these programs at a 1:1 ratio, and our tests indicate that transfers should process instantly.
Related: The ultimate guide to Citi ThankYou Rewards
Bottom line
When it comes to making award reservations, you need certain stars to align. A little bit of flexibility is required to make the process run smoothly, and that might mean changing the dates of your trip a bit or opting for a destination with more plentiful award space. If these three things fall into place, you’ll have a solid award flight.
However, there’s a fourth element to the equation: value. If you can score one of the above sweet spots, you’re essentially guaranteed to get incredible value from your redemption.
Additional reporting by Andrew Kunesh and Ethan Steinberg.
California Democrats carved out the Dream for All money to help first-time buyers. The funds ran out after just 11 days with the average loan hitting $112,000.
Lea este artículo en español.
California lawmakers marketed its new loan program for first-time home buyers as a “Dream For All.”
But just 11 days after applications opened, the initial pot of money is tapped out, sucked dry by eager house hunters. It turns out the dream was only for a lucky couple thousand borrowers — a disproportionate number of them white, non-Latino and living in the Sacramento area.
The Dream for All program was paused on April 6, less than two weeks after the California Housing Finance Agency said it would make the program available to lenders. About $288 million in initial funding will be provided to 2,564 homebuyers, according to an internal document obtained by CalMatters.
exchange for a share in the home’s value when it is sold, refinanced or transferred. If the home appreciates in value, those gains to the state would then be used to fund the next borrowers.
The program was meant, in part, to help address California’s ethnic and racial wealth gap, with Black and Latino families having fewer net assetsthan the national average. Participation in the program was limited to households earning less than 150% of median earnings in their county. According to the initial characteristics shown in the agency document obtained by CalMatters, roughly two-thirds of the beneficiaries went to those making less than $125,000. The average loan was a little more than $112,000.
But those figures also show that the program was disproportionately used by white homebuyers. Senate President pro Tempore Toni G. Atkins, of San Diego, said in a statement Monday that the program was intended to reach those historically shut out of the housing market.
“While this program has been immensely successful in getting new homebuyers into the market quickly and in places with low homeownership rates like the Central Valley, clearly more work needs to be done to make sure that there is statewide awareness, particularly in communities of color,” Atkins said.
Learn more about legislators mentioned in this story
Toni Atkins
State Senate, District 39 (San Diego)
Expand for more about this legislator
State Senate, District 39 (San Diego)
Time in office
2016—present
Background
Small Businesswoman
How she voted 2021-2022
Liberal Conservative
District 39 Demographics
Voter Registration
No party
24%
Campaign Contributions
Sen. Toni Atkins has taken at least $29,015
from the Health
sector since she was elected to the legislature. That represents 9%
of her total campaign contributions.
The fact that the program ran out of cash in a two week spree speaks to just how voracious demand is for housing in California. It also suggests that some of the people who made use of the program were already well into the house hunting process.
That raises an important question: How many of the people who benefited from the loan program actually needed the help and how many would have purchased a home anyway?
“I would guess that 30 to 50% of the people who are using it could qualify or buy without it because I had plenty like that,” said Matt Gougé, a Sacramento loan officer, referring to his own clients.
Ryan Lundquist, a Sacramento appraiser and real estate analyst, said the demographics and current price trends across the region make Sacramento County “a prime target for first time buyers” and therefore a natural beneficiary of the program.
Gougé, the local loan officer, said news of the program spread by word-of-mouth throughout the capital community in the days before the state officially launched the program on March 27. The regional rumor mill may have been churning especially quickly given how much more plugged-in locals are to matters of state bureaucracy.
“Sacramento and the surrounding area’s loan officers and Realtors probably got a jump start,” he said.
While the initial funding for the program might be tapped out, the size and scope of the Dream for All program will likely be a subject of negotiations between Gov. Gavin Newsom and the overwhelmingly Democratic Legislature. In January, Newsom proposed a significantly smaller version of the 10-year, $10 billion program originally envisioned by Sen. Atkins. The governor proposed spending an initial $300 million on the program, a cut from the $500 million compromise signed last year.
Atkins, in her statement, told CalMatters that she was seeking to get more funding for the program in upcoming budget negotiations. The governor is expected to offer a revised state spending plan and a new financial forecast in May. Lawmakers must pass a balanced budget by June 15 in order to get paid.
If you’re looking for a free checking account, you have multiple options in both traditional and online banks. With more than 4,100 banks in the U.S., according to the FDIC, the choices can be downright overwhelming.
It can help if you get clear on what you want in a checking account, narrow down your options, and then read reviews like the one below to find the best free checking account to meet all your needs.
12 Best Free Checking Accounts
When you’re ready to open a new checking account, consider the no fee checking accounts on this list. We’ve evaluated the fees, minimum deposit requirements, annual percentage yield APY on those that earn interest, and more.
Most of the best checking accounts offer features like overdraft protection, mobile banking and the ability to get paid up to two days early with your direct deposit. But financial institutions that let you earn interest on your checking balance or deliver cash back also gained our favor.
1. Chime Checking
Chime boasts truly fee-free checking and a host of advantages for those seeking an online-only banking solution. The bank has no monthly service fees, no overdraft fees, no transaction fees, and no minimum daily balance fees. If you lose your debit card, you don’t even have to pay to replace it!
Chime has a few features that can help you manage cash flow. First, if you sign up for direct deposit you can receive your paycheck up to two days earlier than you might with a conventional bank.
Second, Chime’s SpotMe program covers overdrafts up to $200 (depending on your qualifications). To take advantage, you must have a monthly direct deposit of at least $200. If your debit card purchase exceeds your overdraft limit, it will be declined, so you won’t ever pay overdraft fees.
Your Chime debit card is linked to a nationwide network of 60,000+ fee-free ATMs. The only fee you might pay is if you withdraw money from an out-of-network ATM or use your debit card to withdraw funds from your account during an over-the-counter debit card purchase.
Chime is an online financial services company, not a bank. It provides $250,000 worth of FDIC insurance per account holder, per account, through Stride Bank and The Bancorp Bank, both members FDIC.
Unlike some neobanks, Chime offers multiple means to reach their customer service representatives. You can reach out on live chat through the app or website 24/7/365.
Best for: Free Overdraft Coverage
Minimum Deposit: None
Monthly Fee: None
2. Bank of America Advantage Plus Banking®
Bank of America offers three Advantage checking accounts:
SafeBalance
Advantage Plus
Advantage Relationship
All three allow you to waive the monthly maintenance fee in a few different ways. Preferred Rewards members, who hold at least $20,000 in a Bank of America account or Merrill investment account enjoy free checking from Bank of America.
Otherwise, to waive the fee for your Advantage Plus checking account, you’ll need a qualifying direct deposit of $250 or more per month, or maintain a $1,500 minimum daily balance.
If you don’t qualify to have fees waived, your Bank of America Advantage Plus account will cost a reasonable $12 per month.
As the “middle-of-the-road” account which would fit the needs of the average customer, we chose Advantage Plus as the best free checking account from the big bank. It is also the most popular of the three.
You’ll want to be aware that your BOA account may have additional fees, including an overdraft fee of $10 for each item paid. You can avoid this fee by linking another eligible Bank of America account to your Advantage Plus checking account to cover overdraft transactions with no transfer fees.
Other Bank of America fees include a $15 replacement fee for a lost debit card, an international transaction fee equal to 3% of the transaction in U.S. dollars, and ATM fees of $2.50 for using an out-of-network ATM. With roughly 16,000 ATMs, nationwide, however, it should be easy to avoid out-of-network ATM fees.
Bank of America offers some features you won’t find at other banks. For instance, you’ll gain access to “Erica,” Bank of America’s virtual financial assistant to easily manage your accounts.
You can also enroll in Bank of America’s Keep The Change program, which allows you to round up debit card purchases and have the extra money deposited into your BOA savings account or your child’s linked BOA account.
Keep the Change is an easy way to sneak some extra savings into your budget. Preferred Rewards members can earn more than 5% interest on money in their linked Bank of American Advantage Savings account.
Best for: Preferred Rewards members
Minimum Deposit to Open: $100
Monthly Fee: $0 or $12
3. Quontic High Interest Checking
While it doesn’t compare to Wealthfront’s 4.55% APY for a Cash Account, Quontic offers what qualifies as a high interest checking account with a 1.10% APY.
Be aware that to earn that rate, you’ll need to make at least 10 qualifying debit card purchases of $10 or more in each statement cycle. Otherwise, your money will earn just 0.01% APY.
Quontic’s free checking account with no monthly maintenance fees, no overdraft fees, and no minimum account balance is straightforward, FDIC insured, and socially responsible. The online bank is one of fewer than 3% of all banks designated as a Community Development Financial Institution.
That means Quontic uses your money with fiscal responsibility for social good, depositing it into accounts to help serve lower income families, under-served demographics and small business owners obtain affordable mortgages.
But opening an account with Quontic doesn’t just help others. Account holders enjoy a host of benefits. You’ll gain access to online bill pay and a “roundup program” to shuffle extra “change” from your debit card purchases into your linked high yield Quontic savings account with a 4.25% APY.
You’ll also get a Quontic Pay Ring, a wearable that replaces your debit card for point-of-sale purchases.
Enjoy access to 90,000+ fee free ATMs through the AllPoint, MoneyPass, or SUM program ATMs, as well as Citibank ATMs nationwide. You’ll find these ATMs at popular stores like Target, Speedway, Walgreens, CVS, Kroger, Safeway, Winn Dixie, and Circle K.
In addition to its High Interest Checking Account, Quontic offers a Bitcoin Rewards checking, which rewards you in cryptocurrency for debit card purchases, and a Cash Rewards checking account, which pays 1% cash back on all eligible debit card purchases.
Both accounts offer the same features as the High Interest checking account, except you’ll receive rewards instead of interest on your checking balance.
For a higher APY, you can open a Quontic Savings account with no monthly service fee and a high 4.25% APY.
Best for: Socially conscious banking
Minimum Balance to Open: $100
Monthly Fee: None
4. Wealthfront Cash Account
Like Chime, Wealthfront is not a bank. But some would argue that, with no monthly maintenance fee, FDIC insurance of up to $5 million through partner banks, and a high 4.55% annual percentage yield APY on the Wealthfront Cash Account, it’s even better.
Your Wealthfront Cash Account offers many of the same features as a traditional or an online bank. You’ll receive a free debit card and can withdraw cash with no ATM fees at a network of 19,000 ATMs nationwide.
Most consumers will choose the Individual Cash Account, with features such as early direct deposit, online bill pay, mobile check deposit through the app, and fraud protection. Wealthfront also offers a joint account, with up to $10 million FDIC insurance, and a Trust Cash account.
Best of all, Wealthfront charges no overdraft fees, no transfer fees from external accounts, and no fees if your account dips below a minimum balance. It requires just $1 to open an account.
If you are interested in retail investing, Wealthfront makes it easy with virtually instant transfers between your Wealthfront Cash Account and linked Wealthfront Investment accounts.
As you build your portfolio, you can take advantage of Wealthfront’s vast array of financial services, including automated investing, stock investments with zero commissions, and tax loss harvesting services.
As your Wealthfront investment portfolio grows, you can borrow up to 30% of your portfolio’s value at an interest rate as low as 7.40% APR.
For consumers looking for a one-stop shop for investments, fee-free checking, and savings with a high annual percentage yield, Wealthfront represents a solid choice in online financial service companies or neobanks.
Best for: High Annual Percentage Yield APY
Minimum Deposit to Open: $1
Monthly Fee: None
5. Capital One 360
A Capital One 360 checking account combines the security and convenience of one of the nation’s largest banks with no monthly maintenance fees and no minimum opening deposits.
Account holders also earn 0.10% APY on all checking account balances in their Capital One 360 account.
You can open your account online or in a branch. If you want in-person assistance, you can visit a Capital One branch or Capital One Café for help.
Capital One 360 gives you access to your money through more than 70,000 fee free ATMs in the Allpoint, MoneyPass or Capital One networks.
Capital One 360 has no overdraft fees, but you can decide how you want the bank to handle transactions that exceed your account balance.
You can set it up so that a transaction that would cause an overdraft is declined. Or you can transfer funds from a linked savings or money market account to cover an overdraft.
Alternatively, Capital One may accept certain transactions that put your account into overdraft. You’ll need to deposit money to cover the overdraft or additional transactions will be declined.
Capital One offers direct deposit up to two days sooner than many banks.
Capital One’s robust mobile app allows for bill payments online, mobile check deposits, and Zelle person-to-person transfers. If you want to add cash to your account, you can do it in person at a CVS store. If you have other Capital One accounts or credit cards, you can manage them all through one login.
Your Capital One 360 account has no foreign transaction fees, but keep in mind there may be fees for using out-of-network ATMs, cashier’s checks, outgoing wire transfers, or paper checkbooks.
Best for: Capital One Credit Card customers
Minimum Balance to Open: None
Monthly Fee: None
6. Consumers Credit Union
The only credit union on our list of the best free checking accounts, this checking account is open to virtually all U.S. residents over the age of 18.
You’ll just need to pay a one-time, $5 membership fee to the Consumers Cooperative Association. Consumers Credit Union even reimburses this fee after you open your free checking account. Children as young as age 12 can join as the second member on a joint account.
Your Consumers Credit Union Rewards checking account offers many of the same benefits as top rated online banks with no monthly fees and no fees of any kind.
You will even be reimbursed for fees incurred while using out-of-network ATMs. CCU has a network of 30,000+ ATMs nationwide.
Enjoy early direct deposit, mobile banking, and even the ability to write unlimited checks with no fees. Plus, you’ll earn up to 5% APY on your balance, depending on certain actions you take. Here’s how the tiered checking account interest works for balances up to $10,000:
Earn 3% APY if you make at least 12 debit card purchases a month and have direct deposits, mobile check deposits, or ACH credits of at least $500 each month
Earn 4% APY if you meet the above requirements plus spend $500 or more on your CCU Visa credit card each month
Earn 5% APY if you meet the requirements to earn 3% plus make $1,000 or more in purchases on your CCU Visa card monthly
Balances of $10,000.01 to $25,000 earn 0.20% APY and balances over $25,000 earn 0.10% APY.
If you don’t meet the requirements in a given month, you will still have free checking and free online bill payments and you will receive a 0.01% APY on all checking account balances. You also won’t qualify for ATM fee reimbursement.
You can reach Consumers Credit Union customer service online, by phone, or at CCU branches across Illinois. You can also bank at shared branches across the U.S. that are part of the CU Service Center Network, a co-op of credit unions.
Best for: Those who prefer to bank at a credit union
Minimum Balance to Open: $5
Monthly Fees: None
7. Ally Bank Interest Checking
Ally is not just a robust fin-tech; it is a nationally chartered bank with $196 billion in assets and 11 million customers. The bank offers an interest earning checking account with no monthly fee and no overdraft fees, high-yield savings, money market account and CDs. Plus, it provides investment services, loans, and credit cards.
The Ally Bank free checking account lets you earn interest of 0.25% annual percentage yield APY on all balances.
You’ll pay no monthly service fees, no overdraft fees, and no ATM fees at more than 43,000 Allpoint ATMs nationwide. Ally also reimburses you up to $10 on out-of-network fees charged at other ATMs.
Your Ally checking account makes money management easy. You can put money in specific “spending” buckets allocated for different purchases. This can help you track your spending and stick to your budget. You can also get paid up to two days early with direct deposit.
Many of the best free checking accounts offer overdraft protection. Ally offers two choices to help you avoid overdraft fees. With the Overdraft Transfer Service, you can link your Ally Bank online savings or money market account to your Interest Checking account.
Ally will automatically transfer funds to your checking account to cover your purchase. If you make more than six withdrawals in a statement period, you may be charged “excessive transaction fees,” but Ally Bank reimburses those fees.
The CoverDraft service will cover purchases up to $100 as long as you have deposited at least $100 into your Interest checking account in the past 30 days. You can extend that coverage up to $250 if you receive a qualifying direct deposit of at least $250 for two months in a row.
You’ll need a direct deposit every 45 days to maintain your expanded coverage. You will have 14 days to bring your balance out of the negative.
Best for: Online only banking
Minimum Balance to Open: None
Monthly Fee: None
8. Axos Bank Rewards Checking
Axos Bank offers three different checking accounts with no monthly maintenance fee.
The Essential Checking online account has no overdraft fees, no monthly account fees, and unlimited reimbursement for out-of-network ATM use within the U.S.
The Rewards Checking has all the benefits of the Essential checking account and adds up to 3.30% APY in interest on qualifying balances.
Now until June 30, 2023, you can earn a sign-up bonus of $100 when you open an Axos Bank Rewards checking account and receive direct deposits totaling $1,500 or more each month for the first three months your account is open.
The Axos Bank Rewards checking account has complicated requirements to qualify for the highest annual percentage yield. Here’s how it works:
Direct deposits of $1,500 per month or more earn 0.40% APY
Once you fulfill that requirement, you’ll need 10 point-of-sale signature transactions with your debit card (minimum $3 purchase) or enrollment in account aggregation/personal finance manager account to earn an additional 0.30% APY.
Maintain an average daily balance of $2,500 in an Axos self-directed trading invest account to earn 1%
Maintain an average daily balance of $2500 in an Axos Managed Portfolio Invest account to earn another 1%
Make a monthly payment to an open Axos Bank consumer loan from your Rewards checking account to earn up to 0.60%
Together, this results in a 3.30% APY.
A Cashback Checking account offers the same benefits as the other checking accounts, except instead of earning interest you will receive 1% cash back on eligible debit card purchases.
Keep in mind that to earn the full 1% cash back, you’ll need to maintain an average daily balance of $1,500 in your checking account. If the balance falls below $1,500, you’ll earn .50% for that month.
Best for: Sign-up bonus
Minimum opening balance: $50
Monthly fee: None
9. SoFi Checking and Savings
Another excellent option in online banking, SoFi offers a wide range of financial services, including investments and loans. The bank provides a combination Checking and Savings account with a high yield APY of 4.20% for balances in your savings or Vault, and 1.20% APY on checking balances.
You will need to set up direct deposit to qualify for the high interest rates and other benefits, such as 2-Day Early Paycheck and no-fee overdraft coverage. But there is no minimum balance required.
Right now, the bank is offering new customers who open a free account up to $250 in cash. To receive your bonus, simply open your account and set up direct deposit. Deposits of $1,000 to $4,999.99 qualify for $50 cash back, while a deposit greater than $5,000 will net you $250.
There are no account fees when you bank with SoFi. Account holders with qualifying direct deposits receive fee-free overdraft protection for up to $50 per purchase.
You can even keep the money in your SoFi online savings to collect the high annual percentage yield APY of 4.20% and the bank will automatically transfer funds to checking to cover certain purchases. It will not, however, transfer money from Vaults, which are designed to help you reach specific savings goals.
Your SoFi debit card gives you access to your money for free at more than 55,000 ATMs in the AllPoint network. Plus, when you use your debit card for point-of-sale transactions at many local businesses, you can earn 15% cash back.
SoFi is a nationally chartered back with FDIC coverage. Thanks to a partnership with other banks, SoFi’s FDIC insurance exceeds the $250,000 maximum.
Your deposits are insured up to $2 million per account holder, per account, with SoFi. That makes SoFi an excellent choice in online banking for those with high savings, money market, or CD balances.
Best for: Money management and saving
Minimum Opening Balance: None
Monthly Service Fees: None
10. Varo Bank
Varo Bank has the distinction of being the first financial technology company to become a nationally chartered, online only bank. While most of the banks on our list of best free checking accounts have important features in common, Varo has a few perks that are harder to find in a free account.
First, your Varo debit card offers up to 6% cash back at select online retailers and brick-and-mortar stores. Each time your cashback balance reaches $5, you’ll see the funds deposited directly into your Varo bank account.
When you open a Varo checking account, it pays to open Varo savings at the same time. You’ll gain access to features like “Save Your Change,” which allows you to round up debit card purchases and put the difference in savings.
You can also use Save Your Pay, which deposits a portion of every paycheck you receive via ACH transfer directly into savings. You can set up these features in the mobile app.
Varo also offers a cash advance feature called “Varo Advance,” which allows you to borrow up to $250 and pay it back within 30 days.
You’ll pay nothing for advances less than $20, but there are fees up to $15 associated with borrowing larger amounts. As with many other banks, Varo also lets you get paid via direct deposit up to two days early.
Varo makes it easy to deposit cash into your account by purchasing a Green Dot MoneyPak at stores like Walmart, CVS, Rite Aid, Walgreens, 7-11, Dollar General, and others. You can also deposit cash at the register in any of these stores. You might pay a fee of up to $4.95 for this service.
Varo has no minimum balance requirements, no overdraft fee, no monthly fee, no foreign transaction fees, and fee-free access to 55,000+ ATMs in the Allpoint network.
If you use an out-of-network ATM, you will be charged a $3 fee by Varo, plus any charges incurred from the other bank. If you withdraw money using your Varo debit card at the point-of-sale in a store, you’ll pay $2.50 for the convenience.
You can reach Varo customer support via chat on the app every day from 8 AM to 4:30 PM, Mountain Time, except on Thanksgiving, Christmas, and New Year’s Day.
Varo phone support is also available Monday through Friday during the same hours for help logging into your account, filing a dispute if you suspect fraudulent charges, or to receive help adding your Varo card to a digital wallet.
Best for: Cashback debit
Minimum Opening Balance: None
Monthly Fee: None
11. Discover Cashback Debit
In the world of finance, Discover is best known for offering a straightforward cashback rewards credit card. Discover’s free online checking account also offers cash back rewards of 1% for up to $3,000 worth of debit card purchases monthly.
That could equal up to $30 in free money every month. You can even choose to have that Cashback Bonus deposited directly into your Discover Online savings account, where it can earn up to 3.90% APY.
Discover has no fees for anything. This includes overdraft protection through your linked Discover savings, no insufficient funds fee, no fee for official bank checks, no fee to receive expedited delivery of a new debit card, and no fees for paper checks. The only service that incurs a fee is an outgoing wire transfer. That will cost $30.
You can use your Discover debit with no fees at any of 60,000+ ATMs nationwide. Like many other financial institutions on this list, Discover allows you to receive ACH deposits from your employer up to two days early through the Discover “Early Pay” program.
Unlike many other online only banks, Discover offers 24/7 U.S.-based customer service by phone at 800-347-7000. If you prefer the convenience and cost savings of an online only bank account but want access to 24/7 phone service, Discover Bank could be the best choice for you.
Best for: 24/7 customer service by phone
Minimum Opening Balance: None
Monthly Fee: None
12. Chase Total Checking®
JPMorgan Chase & Co. is not just one of the “big four” banks in the U.S. It is the biggest bank in the U.S. and the world’s largest financial institution based on market cap. For that reason, many people choose Chase Bank for its convenience and 4,700 branches nationwide.
Chase Total Checking is the bank’s most popular checking account, requiring no minimum opening deposit, and a low monthly fee of $12 that’s fairly easy to waive. To waive the fee, you’ll need to do one of the following each month:
Have at least $500 in direct deposits
Maintain a beginning daily balance of $1,500 or more
Maintain an average beginning day balance of $5,000 or more in any combination of your Chase checking account plus other qualifying accounts
Chase offers overdraft protection in the form of its Overdraft Assist program. You won’t pay an overdraft fee if you’re overdrawn by $50 or less at the end of the business day.
If you are overdrawn by more than $50 but bring the account current or bring your overdraft to $50 or less by the next business day, you also won’t pay any fees.
Chase offers access to Zelle for person-to-person payments and has an intuitive and user-friendly app for online and mobile banking.
You can also take advantage of Chase Autosave features to automatically have a portion of deposits transferred into your Chase savings account, or set up automatic transfers on a schedule, such as weekly or monthly.
Set savings goals and have money deposited into specific buckets or transfer funds into your general savings account to build your emergency savings. You can even pause automatic savings if your checking account drops below an amount you set.
Chase Premier Plus Checking offers even more benefits, including free money orders and cashier’s checks, ATM fee reimbursement for out-of-network ATMs four times per statement cycle, and free checks.
Your Chase Premier Plus Checking account earns a 0.01% APY on all account balances, which is the same as a Chase Savings account.
You can avoid the fees on your Chase Premier Plus Checking account if you have an average beginning day balance of $15,000 in any combination of Chase checking, savings, and other deposit accounts.
Another option is if you have a linked qualifying Chase mortgage enrolled in automatic payments, or if you are a member of the U.S. military or a veteran.
When you are a Chase checking customer, you can refer friends to open a Chase account and receive a $50 bonus, up to $500 per year. Like most financial institutions on this list, Chase has a robust and easy to use mobile app.
Best for: 4,700 branches nationwide
Minimum Opening Balance: None
Monthly Fee: $12.95 (for Chase Total Checking) or free if you meet requirements
Methodology: How We Select the Best Free Checking Accounts
We evaluated multiple factors to find the best free checking accounts for consumers across the U.S. Whether you have large monthly direct deposits or have been “unbanked” until now, you’ll find the best free checking accounts for any need or any budget here.
ATM network or generous ATM-fee reimbursement program
You shouldn’t have to pay extra money to access your money. After all, that’s the opposite of a “free checking account,” isn’t it? You want to find a bank with a large, fee-free ATM network to conveniently withdraw cash or make deposits. If the bank reimburses out of network ATM fees, that’s a bonus.
Nationwide availability (Physical locations or mobile access)
If you’re looking for a traditional bank, you want to make sure it has branches near you. Otherwise, an online bank might be the best choice. For this list of free checking accounts, we eliminated credit unions that don’t serve customers nationwide or have strict membership requirements.
Credit unions are often a solid choice for banking, and often have low fees and high interest rates. For instance, Navy Federal Credit Union is a highly ranked financial institution backed by the National Credit Union Administration. But it’s only open to members of any branch of the U.S. Armed Forces, U.S. veterans, their families, and Department of Defense personnel.
We tailored this list around banks with national appeal, with means they serve customers nationwide, with no residency requirements or specific occupational requirements. The one outstanding credit union on the list, Consumers Credit Union, is open to virtually anyone in the U.S. over the age of 18.
No Monthly Maintenance Fee
When most people think of a free checking account, they think of one with no monthly maintenance fees. You’ll see a few banks with monthly maintenance fees on this list because the benefits outweigh the fees. But any monthly service fees are easy to waive by meeting direct deposit or minimum balance requirements.
Low Minimum Deposit and Balance Requirements
Truly free checking accounts should be accessible to most consumers. That means having low or no minimum deposit or minimum balance requirements.
No or Low Foreign Transaction Fees
If you travel abroad or make international transactions, you don’t want to pay fees. This may not be important to everyone, but foreign transaction fees may be a point to consider.
No Account Closure Fee
This was a deal-breaker for us. If you choose to close your account, you should be allowed to do so with no account closure fee. All the banks on this list make it as easy to close your checking account as it is to open it.
No Overdraft Fees
Likewise, if you accidentally spend more money than you have in your account, you shouldn’t be punished. Sometimes we forget that an automatic payment cleared or sometimes, you just need a helping hand to make it to your next paycheck. We gave preference to account with no overdraft fees, overdraft protection, or generous overdraft forgiveness.
Benefits such as high APY, cash-back rewards, or other additional perks
From cash back debit cards to interest bearing checking accounts, generous perks can make it easy to choose one fee-free checking account over another. Other nice-to-have features include:
The ability to pay bills online
Early direct deposit
Mobile check deposit
These account features make it easy to manage your money. We evaluated all these aspects when compiling our list of the best free checking accounts.
Customer Service
Whether you opt for a neobank or a traditional bank with brick-and-mortar branches, you want fast and responsive customer service. We took branch hours or phone hours into consideration, as well as a responsive chat or email for those who prefer automated service without speaking directly to a person.
Other Products and Services
Many people want to use the bank that holds their primary checking account as a one-stop shop for all their financial needs. They don’t want to download another mobile app, remember another password, or keep their money in different places.
For this reason, we considered the availability of high yield savings or money market accounts, CDs and other financial services when choosing the top free checking accounts. Chase, Capital One, and a few others got bonus points from us for the ability to link a child’s account to teach money management at a young age.
How to Choose the Best Free Checking Account
Before you choose a free account, decide what features are most important to you. Do you want a bank with brick-and-mortar branches or are you comfortable banking online only? If you choose an online financial institution, find out if there is a way to deposit cash, since some only allow mobile deposits and ACH transfers from other accounts.
Most of the checking accounts on this list offer similar features, including an easy to use mobile app, no monthly fees, direct deposit capabilities, and overdraft protection. Some have no minimum deposit to open the account, which is convenient since you can set up the account and then fund it within a few days or when you receive your next paycheck.
If you’re looking for interest bearing checking accounts, you’ll find a few on this list. Others provide debit rewards, which isn’t a common feature in a free deposit account. These benefits can help put extra cash in your pocket to help you reach your financial goals.
Determine if you want a linked savings. If so, do you want the capability to transfer funds into multiple savings buckets to help with budgeting?
All the banks on this list are FDIC insured for up to $250,000 per account holder for each type of deposit account. CCU is insured for the same amount by the National Credit Union Administration. That means your money is safe, which is important in today’s climate of economic uncertainty.
Ultimately, your checking account becomes a hub for your financial life. Whether you’re opening your first account or thinking about switching banks to get free checking and more perks, this list provides a good place to start your search.
Free Checking Account FAQs
See what people are asking about the best free checking accounts.
What are monthly maintenance fees?
Monthly maintenance fees are service charges imposed by a bank simply for holding an account. The free checking accounts on this list have fee free checking or it is easy to waive the monthly maintenance fee by having monthly direct deposits or meeting minimum balance requirements.
Do free checking accounts have any fees?
When people think of fee-free checking, they often think of an account with no monthly maintenance fees. However, some free checking accounts may have a monthly fee that can be easily waived with a monthly direct deposit or by meeting minimum balance requirements within a statement cycle.
So-called free checking accounts may have over fees besides the monthly fee. Read the fine print closely to find truly free checking accounts.
What fees do I need to watch out for?
Some banks who advertise free checking accounts may forego a monthly maintenance fee, but charge overdraft fees, ATM fees, withdrawal fees (typically only for savings or money market accounts), fees for paper checks, fees for paper statements, foreign transaction fees, and wire transfer fees. If you lose your debit card, you might have to pay a fee to have it replaced, as well as covering mailing costs.
Can I open a free checking account without a deposit?
Some banks allow you to open a checking account with no minimum deposit required. Of course, if there are any perks, benefits, or sign-up bonuses, you’ll want to fund the account to earn interest or take advantage of special offers.
How do banks make money on free checking accounts?
Banks might make some money from monthly maintenance fees and other customer service charges. But the bulk of their revenue comes from the interest rate they earn on your money when they invest it in other securities, as well as interest collected on loans they make.
Banks don’t necessarily keep the money you deposit in your account. They hold cash withdraws to allow customers to withdraw their money. But they also invest the money and earn revenue on those funds.
They may also earn money on loan services, financial advisory services, investment services with fees, and other services they provide to customers.
These other revenue streams allow banks to offer free checking accounts without losing money.
What’s the difference between a checking and a savings account?
A checking account is where you keep cash for everyday spending. Typically, you can make debit card purchases and withdraw funds from an ATM easily, without fees. Most checking accounts don’t pay interest on your deposits, but some do.
A savings account, on the other hand, holds money you are saving either for a specific events – such as vacation or large purchase – or for an emergency. Financial experts recommend keeping as much as three to six months of living expenses in an easy-to-access savings account.
Savings accounts pay interest ranging from .01% annual percentage yield APY up to 4% or 5% APY. Be aware that some savings accounts charge fees for monthly withdrawals exceeding a limit of six per month.