By Peter Anderson11 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 December 15, 2011.
The Roth IRA is a wonderful investment option that many people take advantage of every year mainly because of it’s tax free growth and because it allows you to diversify your tax situation at retirement if you also invest in some pre-tax investment types like a 401k or IRA.
While the ideal situation is to max out your contributions to your Roth IRA every year, and then not take any money out until retirement, sometimes you might find yourself in a situation where you need money now – before the usual distribution age of 59 1/2. Luckily the Roth IRA is one of the more flexible retirement account types and withdrawing your contributions (or the money you put in) can be done tax and penalty free at any time.
You do need to be careful, however, that you understand when and how you are allowed to withdraw your earnings (the interest you earn on your contributions) – before your retirement age, because if you’re not careful you could be subject to a 10% early withdrawal penalty by the IRS, and be taxed at your normal tax rate.
When Can You Make A Roth IRA Withdrawal?
Again, as mentioned above you can usually make a withdrawal of your principle contributions at any time. The earnings off of your principle can’t be withdrawn until you reach the age of 59 1/2 without paying a 10% early withdrawal penalty. No one wants to pay that. There is also one proviso on being able to withdraw your earnings after 59 1/2 – it’s called the 5 year rule.
Roth IRA 5 Year Rule
You can only withdraw your earnings from your Roth IRA at 59 1/2 and have them count as qualified distributions if it has been at least 5 years since your Roth IRA account was opened. For example, if you opened your account at 56, you would need to wait until you were 61 with withdraw any earnings on your principle.
Qualified Reasons For Roth IRA Distribution
Here are the main reasons you can receive a distribution from your Roth IRA without taxes or penalties:
You are age 59½ or older.
The distribution was made to your beneficiary after your death. (too bad for you – you’re dead!)
You are using the money to buy a home, and are a first-time homebuyer ($10,000 lifetime maximum per account)
You’re disabled.
Other Exceptions to 10% Penalty
Sometimes you may still need to take a distribution from your Roth IRA for a non-qualifying reason. You can still get around the 10% early withdrawal penalty (while still paying income taxes) if you find yourself in any of these situations:
You have un-reimbursed medical expenses that exceed 7.5% of your adjusted gross income.
You are paying medical insurance premiums after losing your job.
The distributions are not more than your qualified higher education expenses. (pay for schooling!)
The distribution is due to an IRS levy of the qualified plan.
The distribution is a qualified reservist distribution.
The distribution is a qualified disaster recovery assistance distribution.
The distribution is a qualified recovery assistance distribution.
Order Of Roth IRA Distributions
When withdrawing your money the distributions come out in this order according to IRS publication 590
Regular contributions.
Conversion and rollover contributions, on a first-in-first-out basis (generally, total conversions and rollovers from the earliest year first). Take these conversion and rollover contributions into account as follows:
Taxable portion (the amount required to be included in gross income because of the conversion or rollover) first, and then the
Nontaxable portion.
Earnings on contributions.
So as you can see the order of distributions is setup in order to help you avoid paying fees or penalties. Your contributions (tax and penalty free) come out first. Next come conversion or rollover amounts followed by earnings on your contributions – which could be assessed penalties if not a qualified distribution.
Conclusion – Don’t Withdraw Until Retirement
So as you can see there are ways that you can withdraw money from your Roth IRA without having to worry about paying taxes or penalties on your money. The question remains, however, as to whether or not it’s a good idea. The whole point of a retirement account is to have the money going in, growing tax free using the power of compound interest – and withdrawing the money short circuits that whole process. My suggestion? Do your best not to take any money out, but if you do, make sure it’s for a qualified reason.
Good luck!
Have you taken an early withdrawals from your Roth IRA? Have you had to pay any penalties or taxes on that money? Have you considered using it to buy your first home or pay for your or your children’s education? Tell us your thoughts in the comments.
Generally speaking, value stocks are shares of companies that have fallen out of favor and are valued less than their actual worth. Growth stocks are shares of companies that demonstrate a strong potential to increase revenue or earnings thereby ramping up their stock price. The terms value and growth refer to both two categories of stocks and two investment “styles” or approaches of investing in stock.
Each style has pros and cons. When value investing, investors can buy shares or fractional shares of a company that has strong fundamentals at bargain prices. However, investors must be careful not to fall in a “value trap”—buying stocks that appear cheap, but are actually trading at a discount due to poor fundamentals.
What Are Value Stocks?
When investors hunt for value stocks, they are looking for stocks that are relatively cheap, unfashionable, or that they believe aren’t receiving a fair market valuation. Value investors try to identify value stocks by examining quarterly and annual financial statements and comparing what they see to the price the stock is getting on the market.
Investors will also look at a number of valuation metrics to determine whether the stock is cheap relative to its own trading history, its industry, and other benchmarks, such as the S&P 500 index.
For example, investors often look at price-to-earnings (P/E) ratio, which is the ratio of price per share over earnings per share. Some experts say that a value stock’s P/E should be 40% less than the stock’s highest P/E in the previous five years.
Investors may also look at price-to-book, which is the price per share over book value per share. A stock’s book value is a company’s total assets minus its liability and provides an estimate of a company’s value if it were liquidated.
Value investors are hoping to buy a quality stock when its price is in a temporary lull, holding it until the market corrects and the stock price goes up to a point that better reflects the underlying value of the company.
What Could Make a Stock Undervalued?
There are a number of reasons that a stock could be undervalued.
• A stock could be cyclical, meaning it’s tied to the movements of the market. While the company itself might be strong, market fluctuations may temporarily cause its price to dip.
Recommended: Cyclical vs Non Cyclical Stocks
• An entire sector of the market could be out of favor, causing the price of a specific stock to dip. For example, a pharmaceutical company with an effective new drug might be priced low if the health care sector is generally on the outs with investors.
• Bad press could cause share prices to drop.
• Companies can simply be overlooked by investors looking in a different direction.
What Are Growth Stocks?
Growth stocks are shares of companies that demonstrate the potential for high earnings or sales, often rising faster than the rest of the market. These companies tend to reinvest their earnings back into their business to continue their company’s growth spurt, as opposed to paying out dividends to shareholders. Growth investors are betting that a company that’s growing fast now, will continue to grow quickly in the future.
To spot growth stocks, investors look for companies that are not only expanding rapidly but may be leaders in their industry. For example, a company may have developed a new technology that gives it a competitive edge over similar companies.
There are also a number of metrics growth investors may examine to help them identify growth stocks. First, investors may look at price-to-sales (P/S), or price per share over sales per share. Not all growth companies are profitable, and P/S allows investors to see how quickly a company is expanding without factoring in its costs.
Investors may also look at price-to-earnings growth (PEG), which is P/E over projected earnings growth. A PEG of 1 or more typically suggests that investors are overvaluing a stock, while PEG of less than one may mean the stock is relatively cheap. PEG is a useful metric for investors who want to consider both value and growth investing.
Investors jumping into growth stocks may be buying a stock that is already valued relatively high. In doing so, they run the risk of losing a potentially significant amount of money if an unforeseen event causes prices to tumble in the future.
How Are Growth and Value Strategies Similar?
While growth and value investing are two different investment strategies, distinctions between the two are not hard and fast — there can be quite a bit of overlap. Investors may see that stocks listed in a growth fund are also listed in a value fund depending on the criteria used to choose the stock.
What’s more, growth stocks may evolve into value stocks, and value stocks can become growth stocks. For example, say a small technology company develops a new product that attracts a lot of investor attention and it starts to use that capital to grow its business more quickly, shifting from value to growth.
Investors practicing growth and value strategies also have the same end goal in mind: They want to buy stocks when they are relatively cheap and sell them again when prices have gone up. Value investors are simply looking to do this with companies that are already on solid financial footing, and hopefully, see stock price appreciation should rise as a result. And growth investors are looking for companies with a lot of potential whose stock price will hopefully jump in the future.
Using Growth and Value Strategies Together
The stock market goes through natural cycles during which either growth or value stocks will be up. Investors who want to capture the potential benefits of each may choose to employ both strategies over the long term. Doing so may add diversity to an investor’s portfolio and head off the temptation to chase trends if one style pulls ahead of the other.
Investors who don’t want to analyze individual stocks for growth or value potential can access these strategies through growth or value funds. Because of the cyclical nature of growth and value investing, investors may want to keep a close eye on their portfolios to ensure they stay balanced — and consider rebalancing their portfolio if market cycles shift their asset allocation.
The Takeaway
Growth and value are different strategies for investing in stocks. Investing in growth stocks is considered a bit riskier, though it also may provide potentially higher returns than value investing. That said, growth stocks have not always outperformed value stocks.
As a result, some investors may choose to build a diversified portfolio that includes each style so they have a better chance of reaping benefits when one is outperforming the other.
Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi Invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here).
For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
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3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. SOIN0523037
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.
Elite airline status can deliver frequent flyers a lot of perks, including free checked baggage, priority boarding access and even complimentary upgrades.
United Airlines has four published elite status levels. Of these, Premier Platinum is the second-highest tier. Here’s a look at United Platinum benefits, how to earn this status and how much it’s worth.
United Premier Platinum perks
United’s MileagePlus program provides those with elite status a variety of benefits intended to make flying simpler and more lucrative. Here’s what you get once you reach Premier Platinum status:
9x miles on flights. For every eligible dollar spent on airfare, members will earn 9 United miles.
Free checked bags. Premier Platinum members get three complimentary checked bags weighing up to 70 pounds each.
Priority check-in. Take advantage of the Premier Access check-in desk, where it’s available.
Priority boarding. Members and their companions receive Group 1 boarding.
Priority security. In airports with priority screening, Premier Platinum members have access to faster security.
Free same-day changes. Free confirmed changes to other eligible flights within 24 hours of boarding.
Better seating. Complimentary access to Economy Plus or preferred seating for the member and up to eight companions when booking.
Unlimited, space-available complimentary upgrades. Upgrades to first class begin clearing at 72 hours before your flight.
Instant upgrades on eligible fares. Those purchasing a Y or B fare class will receive an instant upgrade to first class if space is available.
United Club membership discount. A $50 discount off the regular annual cost of a United Club membership.
Access to sold-out flights. Ability to purchase Y-fare-class flights up to two hours before departure.
PlusPoints. Platinum members receive 40 PlusPoints per year, which can be used to confirm upgrades to premium cabins starting when you book.
More award availability. Those with Platinum status and above have access to better award availability for premium cabins.
Waived fees. Fees charged for booking by phone are waived.
Star Alliance Gold status. Includes benefits such as free checked bags, lounge access, priority check-in and more on eligible partner alliance bookings.
Avis elite status. Complimentary Avis President’s Club elite status.
How to earn Premier Platinum elite status
To earn Premier Platinum status with United, you’ll need to complete the following requirements within a calendar year:
Fly at least four segments with United or United Express.
Complete 36 premier qualifying flights (PQFs) and earn 12,000 premier qualifying points (PQPs). If you don’t meet the PQF threshold, you can qualify by earning 15,000 PQPs instead.
A PQF is determined by the number of flights you’ve taken with United or a partner airline. Each segment within an itinerary counts as a flight, so if you have a layover on a one-way trip you’ll receive two PQFs, whereas a nonstop flight would earn you one PQF.
The amount of PQPs you’ll earn is determined by the cost of your ticket (base fare plus carrier-imposed surcharges), along with certain eligible upgrades you can purchase.
Award flights are eligible to earn PQFs and PQPs. Each flight segment is worth one PQF, and you’ll earn one PQP per 100 miles redeemed for your itinerary.
How much is United Premier Platinum status worth?
How much is United status worth? In general, airline elite status relies pretty heavily on luxury benefits such as priority check-in and faster access to phone agents that don’t have a price tag attached to them.
However, there are quite a few included perks you would otherwise generally have to pay for, such as checked bags, an upgraded seat and lounge access.
In our analysis of major U.S. airlines, NerdWallet ranks United Platinum second among similar high-tier statuses. It trails behind Alaska’s MVP Gold 75K, which provides a 63% return on spend in our calculations.
Premier Platinum status, meanwhile, provides a 49% return on your investment.
According to our analysis, it costs an estimated $12,658 to earn Platinum status. For that investment, you’ll receive perks worth roughly 49% of that amount, or $6,235.
What else you need to know
PlusPoints upgrades can be incredibly valuable. Upon earning status, Platinum members receive 40 PlusPoints, which can be used to confirm upgrades on flights ahead of time.
Although it’s possible to use those 40 PlusPoints to upgrade two domestic flights to first class (they cost 20 PlusPoints apiece), it’s generally a far better value to use these for a long-haul international flight.
It costs as few as 40 PlusPoints to upgrade from an economy class long-haul flight to United’s Polaris business class, which features a lie-flat bed, superior food and drink options, and even pajamas.
Even better, there’s no limit to which flights are eligible, which means those 40 PlusPoints could be used on the longest, most expensive flights, where the price difference between economy and business class can be thousands of dollars.
United Platinum status is valuable
Although it takes work to earn elite status with an airline, it can often be worth it, especially if you travel often. This is the case with United’s Premier Platinum status, which provides a bevy of benefits to those who invest.
Along with perks such as free checked bags, better seating and complimentary elite status with other partners, Platinum members receive 40 PlusPoints, which can be used for incredibly valuable international business class upgrades.
(Top photo courtesy of United Airlines)
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:
Inside: Trade and Travel is a legitimate investing course to learn how to make money in the stock market. See my personal view as a student.
I have been in the personal finance industry for a long time and have watched gurus with CFP and many more designations struggle to make money consistently in the stock market.
There are many concepts on how to trade the stock market.
Teri’s IWT system works.
It’s legit.
I’m a part of her investing course. I have seen the results. $1000 a day club in my LIVE account. Yes.
So, you get to read my Invest with Teri review first.
Teri is able to break down investing into the stock market like no one else I have seen.
You can read a book or blog and find many different concepts that work for them. Then, walk away with your head spinning and quit on the idea of trading and lose a bunch of money along the way. This is why most people leave it to professionals (which is a mistake with that pesky 1% asset management fee).
The Invest with Teri Method is a 7 Step Process that simplifies how to invest in the stock market.
She goes into detail on each of the seven steps to make sure you pick the right companies, limit your risk, know when to buy, and when to take profit.
Plus you have access to a private Facebook group and countless hours of coaching calls to really understand the IWT method.
This is how I am choosing to finance the life I want.
Okay, now that we got that out of the way… let’s dig into the details of the Invest with Teri review and learn how to travel and travel.
This is what you want? Right?
Make more money and have more time freedom.
Enough sitting on the sidelines… read this IWT review and then sign up today.
Honestly, if you have any money in the stock market, you need to take this course to understand the fundamentals.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What Are Online Stock Trading Classes?
If you’re interested in taking stock trading classes, there are a few things to consider before jumping into the world of investing. Stock trading is an investment that can be profitable if done correctly and is a way to grow your money.
Stock trading courses are a great way for newcomers to learn about the stock market. Also, courses are fantastic for those who want to refine their investing skills or maybe stop the bleed of money from trying on their own.
The Invest with Teri Ijeoma course provides a more structured learning path and can help you avoid some of the common mistakes made by novice traders.
In order to get the most out of a stock trading course, it is important to find one that matches your individual needs and goals. Plus one that can offer support and guidance because learning to trade is a learning curve.
Who Should Take Stock Trading Classes?
It is possible to learn the ins and outs of stock trading on your own without taking any classes.
However, for those who want a more structured learning experience, or for those who want to have access to a community of traders, stock trading classes can be a great option.
Taking stock trading classes can be a great idea for people who are interested in getting into the industry. The stock market is one of the most popular industries to get involved with, so it is likely that you’ll want to pursue a side hustle that may lead to a career in this field.
There are many different types of stock trading classes available, so it is important to do your research and find the one that best suits your needs.
Even if you are an index fund investor doing it on your own, this investing class is great knowledge to understand how the market works beyond “I hope it keeps going up.”
Must Read: How To Invest In Stocks For Beginners: Investing Made Easy
Trade and Travel 2.0
Right now, Teri and the rest of her coaches are doing a MAJOR overhaul on the signature course.
Her design team is currently working really hard to create an updated look and feel so you can experience Trade and Travel even better than before.
However, there will be changes – some we know about and some we don’t.
What we Know Today:
A significant Price increase happened (like double to $10k)
Shorting and gaps will be included in the main Trade and Travel course.
Limited time support on coaching calls. (However, a subscription model for additional coaching will be available.)
What You’ll Learn in the Trade and Travel 1.0 Course
The Trade and Travel course is an online course that will teach you everything you need to know about the world of trading, and more!
First of all, Invest with Teri along with Trade and Travel are used interchangeably. They are both the same AMAZING course that will teach you to make money in the stock market.
You will learn the Teri Ijeoma trading strategy.
The Invest with Teri 1.0 course is divided into two sections:
Travel & Travel – This is the basic course to understand fundamentals and to learn how to make money as the stock market goes up.
VIP Program – This is an advanced course that covers shorting, gaps, and options.
The great news… you can start with the basic Trade & Travel program and upgrade to VIP at a later date.
If any of this sounds foreign to you, Teri is one of the best teachers I have ever met. She breaks break down investing in the stock market like no one else I have seen. She is able to take difficult concepts and make them easy.
Simply put, Teri offers a course that teaches you everything you need to know about investing.
Later, in this Invest with Teri review, I will detail the difference between the two courses and what you will learn.
Teri’s Purpose of Trade and Travel – Financial Independence
The purpose of the course is to help students learn how to generate wealth.
Students can use the extra income earned from the course to supplement their income, pay off debt, or save so they can solidify their financial independence.
There is no doubt that in order to achieve financial independence, you need to invest in yourself. This means learning new skills, working on your mindset, and making smart choices with your money.
With a positive attitude and a determined spirit, anything is possible!
Want to Learn More about Investing?
How do you trade with Teri?
The privilege to have one-on-one coaching with Teri herself is very rare. However, she is known to offer group mastermind sessions for her VIP students.
So, in order to trade with Teri, you must enroll in the full $5000 course and wait for the next opportunity to trade with her.
Trade And Travel Program
The Trade and Travel program is the fundamental part of the investing course. This section will teach you the basics of the stock market and how to make money on the way up.
Teri’s trading strategies focus on risk management and she has seen many of her students achieve success with trading.
To be upfront in this Trade and Travel review, you will learn:
Learn how to pick stocks
Understand how the stock market works and how you can make money off it
Recognize why risk management is the most important aspect of trading
Understanding how to read charts
Learn the best places to buy and sell a stock could be
Be able to tell the story of the candles
Understand if your stock trade has a strong likelihood of being profitable
Determine how many stocks to buy based on your risk tolerance
How to place a trade at your brokerage
Manage your trade and exit based on your trading plan
That is a highlight of what you will learn in the basic Trade and Travel program.
Trade And Travel VIP Investor Program
The VIP program is the advanced piece of the course once you learn the fundamentals of the Trade and Travel program.
For those looking to upgrade to the VIP program, you will learn:
Make money when the market goes down.
How does shorting the stock work
When to look for gaps and what they mean
What is globex?
Options! This is everyone’s favorite part of the course!
Understand how to make money with option contracts
Risk management with options
Plus so much more!
Plus you can rewatch all of the curriculum and coaching calls over and over until you get it. That aha moment!
Both Travel & Travel and VIP offer live zoom training each week. Plus there is a vault of recording coaching calls to review.
Supportive Trading Community
Teri has built a supportive trading community of fellow students who have gone through the course.
Each trade cuzzin offers encouragement, advice, moral support, and feedback to each other.
This supportive community can help people overcome their anxiety and doubts when trading and investing.
You can find this supportive community on Facebook groups, Telegram groups, Clubhouse clubs, local meetups in your city, and people have connected to create a mastermind group. Honestly, there are plenty of people available to make sure you are successful on your journey.
Don’t forget… There are weekly live calls and chart parties.
This is how many people have turned 10k into 100k.
My Personal Trade and Travel Reviews
This is one of the best educations I have received.
My biggest regret is that I did not enroll in the course sooner (same as the time before I upgraded to VIP).
In all honesty, this course is a better education than spending hundreds of thousands on a college degree.
Personally, I meet Teri during FINCON, a huge conference for personal finance content creators and brands.
I loved how Teri spoke during her presentation and quickly reached out to learn more about her Invest with Teri course. Also, I was intrigued by the $1000 in a day club.
As always, I investigate every single company or platform that I recommend.
Obviously, this course has an eye-shocking price tag when you first see it. However, once you start earning your money back, you quickly realize how undervalued her course is.
As I always tell my readers… if I wouldn’t put my time, energy, or money on the line, then I am not going to tell you about it. I will only recommend products, services, and courses only that I truly know that work.
My View as a Trade and Travel Student
After a few months of debate if I could afford to spend the money on this investment course…
I became a Trade and Travel student in February 2021.
As outlined above, the course is jam-packed with information. I thought with my background in personal finance I would have a leg up over the others. However, I quickly learned that I need to view the stock market from Teri’s point of view and put blinders on to others’ opinions or styles of trading.
There are a ton of ways to make money in the stock market. This is one of them.
You can google and probably find many more investment courses and rabbit holes to follow. Investing is one of the most popular Reddit Personal finance topics. People want to learn to trade and most are looking to be fed information.
You have heard that saying, “teach a man to fish and he will never go hungry.”
The same holds true for completing this course, “Teach a trader to make money and you will be more profitable than your dreams.”
The best thing about life is you get to decide what you want to do, spend your time, and budget your money. Investing in this course is a big pill to swallow and I get it. However, I would not be so adamant about telling others about this course since I see a path for people to stop the stress with money.
I am successful with trading. Now, it is your turn to become successful.
This is by far the best investing course I have ever seen. 1000% recommended by me personally.
$1,000 In A Day Club
Here is proof. I made the $1k club in my live account and $10K in SIM.
I am a part of the trading community.
What exactly is the $1000 in a day club?
This exclusive club is for those traders who have made over $1k in a day.
Many IWT traders have received this plaque and part of this $1000 in a day club.
If you want to invest money and make $1000 a day this is how to start.
This is how I am choosing to finance the life I want.
Get one step closer to reaching your dreams and financing your life!
How Long Does It Take to Learn to Trade Stocks?
The time it takes to learn how to trade stocks depends on your personal learning style.
It typically takes 2 to 3 years to learn how to trade stocks.
By taking an in-depth course, you can shorten your learning curve.
Teri’s Approach to Learning to Trade Stocks
More importantly, the results you see trading stocks will depend on the effort put in to learn the curriculum, manage the trade, minimize your risk, and prepare your mindset.
Teri’s goal for her student is to earn 1% of our capital consistently.
This is not a get-rich-quick scheme. You have to put in the hard work to reap the benefits (aka profit).
For example, some people learn better by reading and others prefer watching videos. Some people may find that they learn best by following an instructor in a live trading room.
Who is Teri Ijeoma?
How many years of trading experience does Teri have?
Teri Ijeoma has over 10 years of trading experience.
Once she left her job as an elementary school assistant principal, she took off to travel the world. Those around her started asking questions and she taught her first group of students in Thailand.
Teri enjoys enlightening people on investing strategies and is passionate about building wealth.
Combining her trading experience with her teacher background, Teri is a talented educator in the investing world.
Teri has been featured on Forbes, NBC, CBS, ABC, Black Enterprise, Yahoo Finance, Business Insider, Fox News, Comcast – just to name a few!
She thrives by teaching others how to invest, so they can afford the life of their dreams.
Teri has made significant amounts of money through trading and is motivated by helping others achieve success.
Check out Teri discussing her $1,000,000 in a day profit. Yes, one million dollars in a day!
I’m scared to lose my real money trading. Can I still take the course?
Don’t want to risk your money, but are curious?
You can practice in a simulated account before you move to real money. Then, you can make mistakes. Learn from those mistakes. Understand how the stock market moves. Make wins.
The bottom line you can make real money in the stock market. You just have to be armed with knowledge and a trading system that works.
That is why most people lose money in the stock market! They don’t understand how the stock market works. They have poor risk management strategies and tend to select the wrong companies to trade with.
In the Trade and Travel course, you will walk away with so much investment knowledge and support from other people in the course to be successful.
Afraid to trade individual stocks? Teri’s process works with ETFs too!
Is Invest with Teri Reviews Reddit? Is this a scam?
As with any popular r/personalfinance thread, this is one that comes up often…is Invest with Teri legit?
There is a lot of mixed information on the web when it comes to Invest with Teri.
Some people have had great experiences and made a lot of money, while others have had negative experiences and lost money.
Since I have been forthcoming that I am a student of her course, I would recommend active trading as a way to supplement your income.
However, you must be willing to put in the time and effort to see the results.
And honestly, that is where most people give up because you must put in the effort.
At Invest With Teri, they believe anyone can learn how to invest and generate income through investment. They offer a variety of courses on how to invest, as well as a community of support to help you get started.
Their program has helped people from all backgrounds achieve their financial goals.
Did this Trade and Travel Review Convince You?
Teri Ijeoma is a millionaire trader and coach who shares her tips and tricks for success.
Trading is a skill that can be learned, and with the right education, anyone can do it successfully.
Trading is not a get-rich-quick scheme – it takes time and effort to learn.
Don’t waste your time or money on being a self-taught trader. Take a course from an expert.
I am part of this trading community and so excited to be a trade cuz!
Start building another income stream for yourself.
Invest with Teri Ijeoma teaches you how to make a lot more money than you currently are. Very possibly, trading can help you replace your current income or even exceed it
To be successful, you need to invest in this investing course, develop a solid trading plan and stick to it.
Get one step closer to reaching your dreams and financing your life!
Be the first to know when Teri releases a coupon code for her Invest with Teri course.
Do you have an Invest with Teri Coupon?
It is VERY rare that Teri puts out a coupon code.
However, if she does, I always notify my email list who have been on the fence about enrolling.
Typically, these coupon codes are valid for a limited time only.
Trade and Travel FAQs
Obviously, you are doing your due diligence before enrolling in this course, which I completely understand. I did too! I spent a lot of time researching prior to enrolling in this course.
Here are answers to the most asked questions about Invest with Teri, Trade and Travel, VIP program, as well as Teri Ijeoma.
Is the Trade and Travel course for new investors?
Yes, the Trade and Travel course is for both new investors and experienced investors.
Honestly, you are more likely to lose money in the stock market by trading on your own rather than spending money on the best investing course available.
The course is designed for everyone, regardless of experience level.
There are different courses available within the program for more advanced students (like shorting and options).
How long does the program take to complete?
You can complete the course within a weekend if you binged watch everything.
However, it takes 8 weeks to thoroughly go through the curriculum.
The main Trade and Travel course is broken down into sections, and modules include videos, tutorials, pdf worksheets, quizzes, and more.
The course instructor, Teri Ijeoma, estimates that it will take 8 weeks to complete the online course material before you begin trading.
In addition, there are plenty of coaching calls, which are filled with gems of information that you can watch.
This investing course is much like obtaining a college degree. The more you study, the better results you will have.
What will I learn in Invest with Teri course?
You will learn how to trade stocks and options based on her Invest with Teri method.
This is a solid, effective investing strategy.
Learning how to effectively trade stocks and make 1% consistently is the goal. This is higher than the market returns on any given day.
How much does Teri ijeoma course cost?
The cost of the Trade and Travel 2.0 course is $10000.
In addition, there is a payment plan available that allows you to pay in installments which is a great option without interest or hidden fees.
Honestly, this investing course is undervalued given the amount of knowledge you will gain.
Is there a payment plan?
Yes, there is a payment plan.
This is a great way to invest in the program with an affordable payment plan based on what you can pay today.
Right now, you can start the course with Payment Plans as LOW as $208/Month.
Can I purchase the Trade and Travel course and upgrade to the VIP program later?
Yes, you can always upgrade to VIP and pay the $2,500 difference. This is something you can do at any time.
I purchased the course to learn the basics and when I made money to pay for the VIP course I upgraded. Many students have done the same.
My gem of advice… eventually, you need to upgrade to VIP to fully understand the chart analysis as well as make money on the way down.
How much money do I need to start trading?
Many students start with $500.
This question is very difficult to answer because it depends on your personal finance situation and the type of trading you want to do.
The best advice is to start small and grow your account.
Trading stocks and options come with risk as such you must recognize that it is possible to lose all of your trading money.
Personally, I recommend starting with the amount you are comfortable losing. For me, I started with $3000.
Again, you do not need a lot of money to start trading. Check out this interview with Chris Calvin (aka Trade with Coach). He started with $500 and quickly grew it to 5 figures!
What trading platform does Teri Ijeoma use?
In her Trade and Travel course, she reveals which brokerages she has used in the past.
Right now, she is known to use Tradestation.
Recently, in her 5 Day Take the Trade Live Challenge, she set up a brokerage account with TD Ameritrade.
Do I have to attend coaching calls live?
You don’t have to attend coaching calls live. Also, all of the live trainings are recorded except the weekly Trade and Travel Q&A.
By attending a live coaching call, you have the opportunity to ask questions and get help from the instructor.
You can access the class recordings at your convenience once the coaching call is uploaded.
Personally, I attend the VIP coaching calls live to get the best out of the experience.
Remember, if you miss a class, you can always watch the recording later. You will have lifetime access to the coaching call recordings.
How long do you have access to the curriculum?
LIFETIME ACCESS!
You will have lifetime access to the curriculum.
That is pretty amazing to have these resources available forever.
You can review the curriculum as many times as you like.
Personally, I have gone back and reviewed many modules and coaching calls again (and again).
Is there a Facebook group? How long do you have access?
In fact, there are two Facebook groups for students that are run by the IWT coaching staff.
One Facebook group focuses on the general IWT method and the other is specific to VIP strategies.
In addition, there is a Trade and Travel sponsored Telegram group.
These Facebook groups are a great way to connect with other students and to learn from each other.
You have access to the group for as long as you are enrolled in the course.
What’s Teri’s Instagram handle?
First of all, there are so many fake accounts for Teri Ijeoma, Invest with Teri and the Trade and Travel Course.
Teri’s real account is @teriijeoma
Beware of imposters accounts and scams.
Can I share my course log-in information with others?
No, this is not allowed.
Each person should purchase the course separately.
The only exception is you can share with your spouse.
What is the refund policy?
According to their policy, refunds are not available for any of their courses. (You can read that here).
However, they do not want unhappy students or I don’t want unhappy trading cuz.
So, if you need additional assistance, reach out to their support team at [email protected] and one of the fabulous coaches will assist you.
Honestly, this makes 100% sense as a student. There is so much knowledge and information in the course that it is not surprising.
If you truly put in the time and effort, you will see success. You have to put in the work though.
Just a reminder… trading is a risky investment if you don’t know what you are doing. You can lose money in the stock market.
Know someone else that needs this, too? Then, please share!!
Okay – your flight’s booked, you’ve requested time off from work, and your family knows you’re going. The bare essentials for going on your trip are done.
Even so, you have this nagging feeling like there’s some more… adulting to do before you leave.
Indeed, there are definitely a few additional steps you’ll want to take before your big trip to ensure your personal finances stay taught and tidy while you’re adventuring abroad.
(P.S. I traveled to 41 countries in my 20s, so please enjoy learning from my mistakes!)
What’s Ahead:
1. Let your bank and credit card company know that you’re traveling
Setting a “travel notice” with your bank is a quick win and can be done in a single phone call. Some banks will even let you do it from your online dashboard.
When you set a travel notice, you’re essentially telling your bank: “hey, I’ll be in Bolivia in August – so if you see a charge from a hostel in La Paz, that’s not fraud – that’s just me.”
Without a travel notice, your bank will typically block your account until they hear confirmation that it’s just you. This could leave you in a sticky situation – you may be unable to withdraw cash, buy food, or check into your accommodations until you call your bank.
So, be sure to set a travel notice so your bank doesn’t flip out when you try to buy your first cuñape.
2. Download banking and payment apps
After visiting 41 countries, I’ve learned one universal truth about group travel: money changes hands between you like the trading floor of the New York Stock Exchange.
Restaurant tabs and outdoor market negotiations quickly devolve into a humbling frenzy of open wallets, wads of cash, and grown adults counting on their fingers.
“Oh, shoot – can anyone spot me twenty Euros?”
“I’ve got plenty of pesos if anyone needs any.”
“Does anyone have an extra 5,000 Yen for the tip?”
At the end of the day, sipping Sopporo at the hostel, you’ll need to settle your tab with your cohorts – and that’s when having your banking and payment apps pre-installed is a godsend. Not only do Zelle and PayPal automatically convert to the recipient’s currency, but they also save you a nighttime trip to the ATM – which can be expensive and dangerous.
Read more: Make Paying Easier With The 10 Best Payment Apps
3. Get a budgeting app to help you stay on track
In addition to a payment app, it’s helpful to have a budgeting app while you travel so you can stay on track with your financial goals.
On a more personal note, establishing a budget before your trip and sticking to it takes a ton of the stress and guilt out of travel. Take it from me, when you’re traveling on a budget, without a budget, every nonessential expense can come with a heaping side of guilt.
Another five euro beer in Bavaria? I probably shouldn’t.
This beautiful painting of Ha Long Bay that’s only $30? Ehhh…. not when I’m between jobs.
Not knowing how much you’re allowed to spend when you’re traveling can be a huge buzzkill. But conversely, once you set a budget, your mindset shifts and you feel much more confident and relaxed in your spending:
I can safely afford three craft beers tonight.
Even if I buy this beautiful painting, I’ll still have $220 left in my art budget!
So I passionately suggest establishing a budget before you head overseas – it’s low-key the #1 stress reliever before a big journey!
Read more:9 Best Budgeting Apps To Take Control Of Your Finances
4. See what travel perks and insurance you already get with your rewards card
Sure, 2% cash back rewards are great – but did you know that your credit card might also include up to $25,000 worth of trip insurance?
It’s a lesser-known perk of many rewards cards, but yes – many credit cards these days include travel-related insurance and coverage including:
Trip Delay Reimbursement. Delay coverage would reimburse you for extra expenses due to a delay, like hotels/meals after a canceled flight.
Trip Cancellation/Interruption. This is the big one; if you or even just someone in your family misses a trip due to sickness, a death in the family, severe weather, or even jury duty, your card could cover your trip for up to $25,000.
Baggage Delay.If your bag is delayed by at least 12 hours, your credit card company will actually reimburse you for typically around $150 of clothes and toiletries to get through the day.
Lost Luggage Reimbursement.If your bag never arrives, your card company could cover the replacement cost of your luggage plus contents, usually up to $500 or $1,000. You should know, however, that by law airlines are required to reimburse you for up to $3,500 for lost, damaged, or delayed luggage.
Travel and Emergency Assistance Services.Stuck in a foreign country with a canceled flight? It may not be your first impulse, but calling your card issuer can actually save the day. Many credit card companies have 24/7 travel concierges that can help you make emergency travel plans.
Emergency Evacuation and Transportation Coverage.Finally, and this one became more common during the pandemic, if you incur hotel/transportation costs during an emergency evacuation, your credit card may cover it.
Head online and read your credit card’s cardholder agreement, top to bottom. That’ll give you an idea of the perks included, which could save you tens of thousands of dollars under the right (unfortunate) circumstances.
5. Get traveler’s insurance
Whether or not your card includes some trip insurance, you’ll still want to consider plugging any sensitive gaps. Travel insurance is cheap, relieves a ton of stress, and some consider it to be essential.
There are three types of travel insurance:
Financial travel insurance covers your trip itself, and may already be covered by your credit card. It includes trip cancellation/interruption coverage, baggage delay reimbursement, and more.
Medical travel insurance covers you during your trip and includes your medical bills for emergency evacuation, basic healthcare, etc. Even if you’re traveling to a country with affordable out-of-pocket healthcare, the U.S. State Department reminds us that medical transportation costs can reach $100,000 alone.
Comprehensive travel insurance quite simply includes both Financial and Medical travel insurance.
I know, when you’re budgeting for a trip, purchasing $50 to $300 or so worth of insurance that you might not even use feels like a frustrating tax.
But think of it this way – even if you never end up using it, travel insurance still has a tangible benefit – every day, it removes stress from your trip. For a couple of hundred bucks, it prevents any interruption in your goal to achieve financial freedom.
6. Bring a travel rewards card
Depending on where you’re going and for how long, you might consider applying for a travel rewards card to bring with you.
Now, the credit card companies would have you believe that getting a new credit card is as simple and straightforward as ordering a burrito.
It’s not, and there are some hidden caveats/drawbacks for you to seriously consider before applying:
Credit card applications hurt your credit score. When you apply for a new credit card, the company will make a hard pull of your credit, causing an immediate drop of five to seven points.
Travel rewards cards typically require excellent credit. Because travel cards are “lifestyle cards” that encourage high spending, the card companies want to know that they can trust you to pay your bill when you’re back home. Therefore, they typically require a credit score of 750 or higher
The best travel cards charge an annual fee.The best travel cards almost always charge a $95 annual fee (or higher). Granted, they also tend to have generous signup bonuses ($500+) if you spend enough within your first three months.
The best time to get a travel rewards card is before you book your trip. That way, you can put your trip on your new card for extra cash back and to make progress on earning your signup bonus.
Aside from getting trip insurance, better cash back on travel expenses, and a signup bonus, the final perk to bring a travel rewards card is zero foreign transaction fees. Most non-travel cards will charge a 3% fee on every purchase you make overseas, making your cash back rewards null and void.
If you plan to go shopping abroad, a travel card (or at least one with no foreign transaction fees) is an excellent companion.
Read more: Best Travel Rewards Credit Cards
7. Turn on notifications for every single transaction
Circling back to my very first point, you definitely should still give your bank a travel notice so they don’t immediately freeze your account as soon as you try to make a purchase overseas.
That being said, I recommend you still set up alerts for every single transaction made on your card while you’re traveling.
What if you’re in Bolivia, but that charge at the hostel in La Paz wasn’t you? Now, the roles have reversed – your bank probably thinks it’s OK, but you obviously don’t.
That’s why it’s a good idea to have your bank ping a notification to your phone every time there’s a transaction on your account. Yes, you may get eleven pings a day, but I promise – it’s all worth it for that one ping that makes you go: hol’ up.
8. Prepare to use card lock
Let’s say you do get an alert for a fraudulent charge. Or maybe, you’ve simply lost your credit card and want to prevent any bad guys from using it.
What now? Do you call up Chase and cancel your card?
Hold the phone, because canceling a credit card could have seriously negative consequences on your personal finances. To start, every merchant you have on autopay will experience a missed payment, which could lead to a disruption in subscription services and even a dip in your credit score.
Plus, and I’m pulling from personal experience here, canceling a credit card abroad means that card is donezo. Six feet under. In most circumstances, your card issuer won’t be able to get you another physical card until you’re back home.
Besides, what if you find your card behind the hostel bar right after you cancel it?
That’s why card lock is such an essential feature for travelers. Card lock is a simple toggle in your banking app that lets you block any new transactions on your card. Pre-authorized transactions are allowed, but the bad guys won’t be able to charge anything new. They’ll probably assume you already canceled it and toss it in the trash.
Card lock is also a no-brainer if you’re searching for a lost card, or you do know where it is and just need a few hours to retrieve it.
9. Automate your bills
Speaking of pre-authorized transactions, another key step in ensuring a smooth trip (financially speaking) is to ensure that you won’t come home to any delinquent bills.
You’ll be glad you set up autopay for your rent, utilities, etc. if you haven’t already. It’s not just decidedly unfun to return from Bali to a pile of bills – it can also be expensive and hurt your credit score.
Some less patient merchants (notably utility providers) keep their fingers on the trigger, and as soon as you miss a payment they’ll ambush you with late fees and report your delinquent payment to the credit bureaus.
So, be sure that all of your bills, rent, etc. are set on autopay so you don’t get in trouble while you’re gone. And TBH, just keep everything on autopay so you don’t miss any payments in the future!
Read more:Automatic Payments Explained – Everything You Need To Know About AutoPay
10. Suspend your paid subscriptions
Conversely, if you’ll be gone for more than a month, you might even consider canceling some of your subscriptions until you’re back. This is a frugal life hack that I’ve used to save hundreds during my overseas adventures.
For example, you may want to consider canceling the following services (and more) if you won’t be using them while overseas:
Hulu.
Disney+.
Peloton.
HBO Max.
Spotify.
Netflix.
After all, these services let you reactivate on a whim, so you might as well suspend your subscription and save $20, $40, even $100 during each month you’re gone.
Not only is it effortless to re-subscribe – they’ll often give you promos for it (e.g. reactivate now to save 20% off your next three months).
Now, if it’s a subscription to a small business, like a local gym or a life coach, I’d encourage you to continue supporting them even while you’re overseas.
But Disney? They’ll be fine.
11. Remember to skip your meal deliveries
I’m giving this one its own header because it caused me a surprising amount of stress on my recent jaunt to the Bahamas.
While I was checking my email in Nassau, I got a notification that my Freshly box was out for delivery.
Oops.
Now, if it were just a regular package I could’ve rolled the dice and let it sit on my porch. If I were feeling paranoid, I probably could’ve gotten a pal to swing by within a few days and hide it.
But fresh meals? They had hours before they expired and I lost $100 worth of meal prep (and created tons of food waste).
For an undisclosed amount of bribery, I finally got my up-the-street neighbor to rescue my meals and keep them in her fridge for five days, but lesson learned – skip any fresh meal deliveries while you’re overseas.
12. Have a plan for your mail and packages
On a similar note, it pays (literally) to have your mail and packages taken care of while you’re gone.
If you go online, you can typically redirect UPS and FedEx packages for delivery to the nearest brick-and-mortar store for complimentary safe-keeping – even if the package is already in transit.
USPS offers a service called USPS Hold Mail® that, as the name subtly implies, will hold your mail at the nearest post office for up to 30 days. You can set it up online by creating a USPS account.
(Fun fact – you can also opt-out of junk mail for $2).
13. Freeze your credit report
This is a newer travel tip that some would consider extreme, while others consider it 100% necessary. I’ll let you be the judge.
Remember card lock, which prevents your credit card from being used? Well, there’s a more intense version of that where you can actually prevent your entire credit report from being used.
When you travel abroad and use your credit card in more places, the threat of identity theft naturally rises. Then, the usual first step in identity theft is that the bad guy will start applying for loans in your name.
At this stage, the lender sends a request to the credit bureaus to release your credit report, and when they see you have good credit, they give the bad guy whatever he wants.
But if you freeze your credit report, it stops the bad guy right in his tracks.
To freeze your credit report, you have to call up each of the three credit bureaus:
Equifax (1-800-349-9960).
TransUnion (1-888-909-8872).
Experian (1-888-397-3742).
They’ll ask you for a password to release it again – be sure to get it tattooed on your arm (or your friend’s arm) because you won’t want to lose it. Then, all you have to do is unfreeze it again when you apply for your next loan or line of credit.
14. Sublet your apartment
If your lease allows it, subletting your apartment while you’re gone could cover the cost of your trip!
When you sublet, you’re essentially letting a renter stay in your space while you’re gone. You’re effectively a landlord for a few weeks/months during your trip, and you’ll have to issue a lease of your own and collect rent.
You’ll likely want to collect a security deposit, too, to cover any potential theft or damages to your property.
Subletting makes the most sense if your renter is someone you trust – a friend, colleague, family member, etc. A total stranger might squat in your space, refuse to pay rent, and simply disappear before you return (with your stuff).
For that reason, subletting isn’t for everyone; but if you have a renter in mind and could get a lot for your space, it’s definitely worth investigating!
Read more: How to Sublet Your Apartment Safely
15. Make sure you don’t pay for data roaming
There’s a scene from An Idiot Abroad where Ricky Gervais knows Karl gets charged 70 pence every time he receives a text message in Egypt so he keeps texting him this:
Even if your data carrier says they include data roaming in your monthly bill, don’t believe them. T-Mobile claims they include unlimited data roaming and a “low rate ceiling” for global travelers, and yet felt justified charged a family $13,470.19 while they traveled – $1 per megabyte.
Here’s the crazy thing – the family’s phones were on airplane mode the entire time – but apparently, certain apps these days can shrug off airplane mode and vampire data regardless.
So, the key to avoiding roaming charges is to either:
Go into Airplane Mode Settings and ensure that Cellular Data is disabled.
Prepay for roaming data, if it’s essential.
Only then will you ensure that you never pay 70p for a text from Ricky Gervais again (actually, that might be worth it).
Read more: Should You Buy An International SIM Card For Your Next Trip?
16. Download a VPN
My final travel tip for safeguarding your finances is to download and start using a virtual private network, or VPN.
VPNs are essential travel tools because, among other things, they scramble your data while you browse the web. You’re going to be using a lot of public WiFi while you’re traveling, especially in airports, and that’s precisely when you’re the most vulnerable to having your data stolen (ID, bank passcodes, etc.)
Thankfully, even the cheapest VPN (~$3 a month) can protect you and ensure your sensitive financial data stays invisible.
Plus, VPNs can also help you circumvent national firewalls and download region-locked content. Want to download a movie only available on Netflix Canada? Want to visit Western social media while you’re in China? VPN.
Even if you’re unfamiliar with VPNs, they’re super easy to download and use – so be sure to pick one and tinker with it before you depart!
Summary
Money is a serious consideration for every big trip, but if you plan it well and implement a few key travel hacks, I guarantee you’ll have a less stressful (and more lucrative) adventure overseas.
Timeshares may be a fun vacation option for a while, but sometimes people want to end the arrangement. Those time share contracts, however, can seem pretty ironclad.
Whether you want out due to buyer’s remorse, a shift in your financial situation or health, or any other reason, here’s some good news: You’re not necessarily stuck.
If you change your mind soon after the purchase, for instance, you might be able to opt out during the “rescission period.”
Those who have had their timeshare for years can have alternatives, including having the resort take it back or perhaps re-selling it.
There are also what are known as “exit” companies that help timeshare owners get released from their agreements (though it’s important to vet those companies before signing an agreement).
If you’re ready to say goodbye to your vacation place, read on to learn steps for legally getting out of a timeshare contract.
5 Steps to Escaping a Timeshare
If you’re thinking about getting out of a timeshare or know you’re ready to make a change, here are five options to consider.
1. Checking the Rescission Period
If your second thoughts occur within several days of your purchase, you may be able to rescind the transaction if you’re still within the “rescission period.”
If you are, you should be able to get your money back and go on your merry way.
Keep in mind, however, that the rules vary from one state to the next.
Depending on the state where the timeshare is located, rescission periods can be anywhere from three days (the minimum required by the Federal Trade Commission) to two weeks.
In some cases, the rescission period may kick in as soon as you buy the timeshare. In others, it might start when you receive the public offering statement that includes general information about the timeshare.
For a timeshare on an exotic isle somewhere outside the U.S., you’ll need to find out what the laws are there.
If you’re eligible for rescission, you’ll want to follow the instructions in the documents you received when you purchased your timeshare.
Most likely you’ll need to send the resort a letter telling them you want out via rescission for a full refund.
It’s a good idea to send this letter using certified or registered mail.
💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.
2. Contacting the Timeshare Resort
If rescission isn’t possible because too much time has passed, another option you may be able to take advantage of is a “deed back” program.
Also known as “take-back” and “surrender” programs, these programs allow distressed owners to give their timeshares back to the resort developer, often for a fee of a couple of hundred dollars or so.
To find out if your developer offers this type of program, you may want to contact them directly and ask to speak with someone who handles “deed-backs” or “surrenders.”
You can also check online resources like ResponsibleExit.com for information about return programs.
Generally, developers will only go for this if the timeshare is fully paid for, and you’re up to date on your maintenance fees.
Some developers that accept returns may require owners to pay annual fees for a year or two while the resort finds another buyer.
In some cases, you may have to prove financial or medical hardship in order to qualify for a take-back program.
Even if your resort doesn’t have an official take-back program, you have nothing to lose by asking. Who knows; they might go for it.
Recommended: How to Automate Your Finances
3. Reselling The Timeshare Yourself
If you’re considering reselling your timeshare, it’s probably best if you don’t go into it with hopes of making a killing.
There are typically many people looking to unload their timeshares and demand isn’t generally high, unless your property is in a hot destination.
As a result, reselling can often be a losing proposition.
The best approach might be to think of reselling as someone taking the timeshare off your hands and becoming responsible for the fees moving forward, rather than making a profit.
You can list your timeshare on a general resale marketplace site, such as eBay and Craigslist. There are also sites just for timeshares, such as TUG (the website for the Timeshare Users Group) and RedWeek .
💡 Quick Tip: When you feel the urge to buy something that isn’t in your budget, try the 30-day rule. Make a note of the item in your calendar for 30 days into the future. When the date rolls around, there’s a good chance the “gotta have it” feeling will have subsided.
4. Reselling the Timeshare Through a Broker
If you opt to resell your timeshare, another option is to hire a real estate broker or agent who specializes in reselling timeshares.
If you choose this route, however, you’ll want to pick your broker carefully, cautions the Federal Trade Commission (FTC) .
Some real estate brokers and agents who specialize in reselling timeshares may falsely claim the market in your area is hot and that they’re overwhelmed with buyer requests.
They may even tell you that they already have buyers ready to purchase your timeshare, or promise to sell your timeshare within a specific time.
It’s wise to be skeptical of all such claims, says the FTC, and also to vet the reseller before agreeing to anything on the phone or in writing.
A good safeguard is to contact the state Attorney General and local consumer protection agencies in the state where the reseller is located, and ask if any complaints are on file. You also can search online for complaints.
You may also want to ask the reselling agency if their agents are licensed to sell real estate where your timeshare is located. If they say they are, you may want to verify it with the state’s Real Estate Commission.
Recommended: How to Manage Your Money Better
Other questions you may want to ask before hiring a reselling agent:
• How do you plan to advertise and promote the timeshare unit?
• Will I get progress reports and, if so, how often?
• What fees do you charge, and when do they have to be paid?
It’s generally preferable to do business with a reseller that takes its fee (or commission) only after the timeshare is sold.
If you must pay a fee in advance, however, it’s wise to ask about refunds, and to get all refund policies and promises in writing.
💡 Quick Tip: If you’re creating a budget, try the 50/30/20 budget rule. Allocate 50% of your after-tax income to the “needs” of life, like living expenses and debt. Spend 30% on wants, and then save the remaining 20% towards saving for your long-term goals.
5. Hiring a Timeshare Exit Company
The concept is good. With a timeshare exit company you often get a small army to handle your business.
A good one knows the inner workings of the timeshare industry, which could be advantageous to you.
One major caveat is that these services generally don’t come cheap–prices vary considerably, but can be as high as $4,500.
It’s also important to be aware that there are many bad apples out there. There have been numerous lawsuits against timeshare exit companies that backed out of their payment agreements with customers.
To help ensure that an exit company you’re thinking about hiring is reputable, you may want to check with the Better Business Bureau, and also search online, to see if there have been complaints about the company and (most importantly) how they have handled those complaints.
You can also protect yourself by refusing to make any payments before a contract has been signed by both parties.
Recommended: 5 Reasons to Switch Banks
The Takeaway
Unloading a timeshare property isn’t always easy, but some of your exit options include: backing out during the “rescission period,” reselling it yourself, hiring a broker to resell it for you, and hiring a timeshare exit company to take care of the whole separation process.
It’s important to understand all of your options (and the potential pitfalls of each) in order to choose the best solution for your situation.
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SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. This article is not intended to be legal advice. Please consult an attorney for advice. SOBK0523039U
Are you a new home buyer looking for a home loan provider that offers the cheapest loan? A cheap home loan might be one that offers low rates and fees, but it isn’t the only thing you should be looking for.
For instance, some home loan features can actually help you with your interest rate as much as or more than a lower rate. Here at Mozo, we’ve made a handy little explainer on what features you should look out for when it comes to finding a cheap home loan.
Which home loan features to keep in mind
There are a lot of moving parts when it comes to home loans, so it can be difficult to know what to look out for. However, when hunting for a cheap home loan, a good idea is to keep in mind a couple of key features.
One that’s particularly useful for a borrower to have is free extra repayments. Basically, by being able to make extra contributions to your loan, you’ll reduce the amount of interest you pay and the length of your loan—thereby making it cheaper over the long term too!
Another helpful feature to have alongside free extra repayments is a redraw facility. Basically, any extra contributions you make above the minimum are available for you to redraw from the loan amount.
However, do keep in mind that redraw facilities will usually have a minimum and sometimes maximum redraw amount. You may also be restricted to a set period of time you can actually redraw your extra repayments.
Similar in function to redraw facilities, offset accounts are one feature that you should also consider when getting a low-cost home loan. Offset accounts work a lot like savings accounts, except that they reduce the interest on your home loan rather than earning you interest on your savings.
Unlike a redraw facility, an offset account also acts like an everyday banking account—so you can deposit and withdraw money whenever you need it. Just keep in mind that whenever you take money out of your account, your interest owed on your loan will also rise.
So, now that you know some of the features to look out for in cheap home loans, there’s one last thing to consider—how do you make sure that you’re actually getting a cheap home loan?
Utilising a comparison site like Mozo is one way you can compare cheap home loans so that you know you’re getting the loan with the lowest rates and fees. At Mozo, our database lets you compare hundreds of home loan providers so that you can get the loan that works best for you.
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WARNING: This comparison rate applies only to the example or examples given. Different amounts and terms will result in different comparison rates. Costs such as redraw fees or early repayment fees, and cost savings such as fee waivers, are not included in the comparison rate but may influence the cost of the loan. The comparison rate displayed is for a secured loan with monthly principal and interest repayments for $150,000 over 25 years.
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Initial monthly repayment figures are estimates only, based on the advertised rate. You can change the loan amount and term in the input boxes at the top of this table. Rates, fees and charges and therefore the total cost of the loan may vary depending on your loan amount, loan term, and credit history. Actual repayments will depend on your individual circumstances and interest rate changes.
^See information about the Mozo Experts Choice Home Loan Awards
Mozo provides general product information. We don’t consider your personal objectives, financial situation or needs and we aren’t recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.
While we pride ourselves on covering a wide range of products, we don’t cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.
Compared to banks, credit unions offer more individualized service. Plus, many of them also provide lower fees and higher rates on certain accounts. However, you must become a member of a credit union to utilize its services. In most cases, credit union membership is reserved for people who live, work, and worship in a certain area.
Some credit unions are also geared toward those in specific professions, like education or law or anyone who makes a donation or joins an organization. You’ll be pleased to learn that most credit unions have made their membership criteria more lenient and opened up their offerings to more types of people. In fact, many of them are quite easy to join.
14 Best Nationwide Credit Unions
While many credit unions are small and can only be found in select local areas, there are quite a few that are nationwide. If you travel frequently for work or pleasure, you might be in the market for nationwide credit unions.
Fortunately, most credit unions that have a nationwide presence are easy to join and offer a variety of benefits. To make your search for the best federal credit unions a bit easier, we’ve compiled this handy list.
1. Connexus Credit Union
Headquartered in Wisconsin, Connexus Credit Union is known as one of the largest credit unions in the U.S. It has over 400,000 credit union members across all 50 states. This is no surprise as it partners with well-known companies, such as Liberty Mutual Insurance, Kraft, Honeywell, and BMW.
To join, you’ll need to qualify through your employer that’s one of the credit union’s partner companies or donate at least $5 and open an account. As a credit union member, you can enjoy high APYs on checking accounts and other deposit accounts as well as low rates on mortgages, personal loans, and car loans.
The Xtraordinary Checking Account offers an APY of up to 1.75% on certain balances so you can make the most out of your hard earned money. White you don’t have to pay any fees, Connexus does require that you spend a certain amount on your debit card and sign up for eStatements to take advantage of the interest.
Furthermore, if you don’t use your checking account for more than 90 days and have a balance of $100 or less, you may have to pay an inactivity fee. Connexus has more than 5,600 shared branches and over 67,000 fee-free ATMs. Plus, the credit union offers higher rates and exclusive discounts throughout the year.
2. Navy Federal Credit Union
If you’re part of the military community, Navy Federal Credit Union should be on your radar. You can become a member if you have an active duty or reservist military member, worked for the Department of Defense, or are the immediate family member of someone eligible for membership. You’ll also be required to open a Navy Federal savings account and make a minimum deposit of $5.
The credit union has about 350 physical branches worldwide and many of them are near military bases in Maryland, Virginia, and California. There are also more than 30,000 fee-free ATMs. If you like to do your banking on your mobile device, you’ll be pleased to know that there is a highly rated app.
If you join Navy Federal Credit Union, you can enjoy no monthly fees or minimal fees on basic savings or youth savings accounts. NFCU also offers several checking accounts as well as competitive rates for share certificates, which are basically certificates of deposits (CDs).
3. Consumers Credit Union
Based in Illinois, Consumers Credit Union has 11 branches in the Chicago suburbs but opens its membership to anyone in the country. All members get access to more than 5,000 shared credit union branches and over 30,000 ATMs.
To join, simply pay $5 and fill out a short application form. Consumers offers some of the highest annual percentage yields or APYs on its rewards checking accounts. However, it requires that you make at least 12 debit card purchases per month, enroll in eDocuments, and have a monthly minimum of $500 in ACH deposits, direct deposits, and mobile check deposits.
If you prefer, you can choose from a no-frills checking account that doesn’t earn any interest. Other product offerings include four savings accounts, IRA certificates, and money market accounts.
4. Pentagon Federal Credit Union
Founded in 1935, PenFed Credit Union is known as one of the largest credit unions in the country. It serves more than 2.8 million members and has over $36.6 billion in assets. While this best credit union was originally only available to military members and their families, it eventually opened the doors to anyone. You can join as long as you deposit $5 into a savings account.
As a PenFed member, you can reap numerous benefits, including great rates on checking accounts, savings accounts, and money market certificates. In addition, you can sign up for early direct deposit and access more than 85,000 fee – free ATMs across the nation.
Even though PenFed is not part of a shared branch network, like other credit unions, it pays high rates, and has about 40 of its own branches throughout the U.S. There’s also a solid mobile app and customer phone support with evening and weekend hours.
5. SkyOne Federal Credit Union
SkyOne Federal Credit Union is one of the best credit unions and has a mission to help families become financially stable. It serves more than 40,000 members with $600 million in assets. Since its inception in 1949, SkyOne has offered a robust lineup of financial products, like interest-bearing checking accounts, money market accounts, credit cards, mortgages, and car loans.
Its share certificates come with exceptional rates that you might not find at other credit unions. SkyOne also has a free mobile banking app, a plethora of free educational tools, and a network of thousands of credit union branches for easy access.
The main downfall of this credit union is that it’s geared toward those who work in the air transportation industry so you might have a difficult time qualifying. Fortunately, membership has recently become a bit more lenient to accommodate more people.
6. Alliant Credit Union
Illinois-based Alliant Credit Union has more than 700,000 members across the country. Unlike other credit unions on this list, Alliant operates strictly online. If you like the idea of online and mobile banking, this credit union should definitely be on your radar. Its online accounts pay highly competitive interest rates that can be as much as 22X the national average.
Plus, you don’t have to worry about overdraft or ATM fees. You can also score up to $200 per month in ATM rebates. While its checking and savings accounts are the most popular products, Alliant also provides mortgages, auto loans, personal loans, and credit cards. At this time, Alliant does not offer any no-penalty or specialty CDs.
Customer service is available 24/7 and there’s also an online contact form you can use for less pressing questions or concerns. To become a member, join Foster Care to Success (FC2S). Once you do, Alliant will pay the $5 membership fee to the organization for you.
7. First Tech Federal Credit Union
First Tech Federal Credit Union made its debut in 1952 when it was first founded by employees of Hewlett-Packard and Tektronix. Today, the credit union partners with large companies, like Hewlett-Packard, Amazon, Microsoft, and Nike. You can join as long as you work at one of its partner firms or become a member of the Computer History Museum or Financial Fitness Association.
There are 33 branches, mainly in California, Washington and Oregon, but with several locations across Colorado, Georgia, Idaho, Massachusetts and Texas. As a member, you can enjoy in-person service at more than 5,600 Co-op Shared Branch locations in the U.S.and access your money at over 30,000 free ATMs.
It offers a long list of financial products, like checking accounts, savings accounts, credit cards, loans and investment accounts. Most of these offerings come with low minimum opening balance requirements and no monthly maintenance fees. First Tech Federal Credit Union is unique in that there are many business banking services that are rarely seen at other credit unions.
9. Bethpage Credit Union
While it is located in New York, Bethpage Credit Union opens its membership to anyone who makes a $5 payment, regardless of where they live. The credit union partners with hundreds of other credit unions to offer access to more than 5,000 branches and over 30,000 fee free ATMs. Virtual visits by phone and video appointment are also available.
Bethpage’s product lineup includes three checking accounts, four savings accounts, share certificates, and money market accounts. Believe it or not, even the free checking accounts pay interest. In addition to deposit accounts, the credit union provides mortgages, home equity lines of credit (HELOCs), car loans, auto refinancing, personal loans, retirement planning, health savings accounts, IRAs, and insurance.
You can access your accounts on the go with the handy mobile app, which includes convenient features, such as budgeting tools, online bill pay, and budgeting tools. Bethpage also offers access to a digital wallet and Zelle money transfers.
10. Latino Community Credit Union
Headquartered in North Carolina, Latino Community Credit Union has 15 branches in the state as well as 1,300 free ATMs through the CashPoints network. While it was originally built for the Latino community, you don’t have to be Hispanic or live in North Carolina to join. All you have to do is submit an application and pay a $10 membership fee.
Latino Community Credit Union is federally insured by the National Credit Union Administration (NCUA) and offers 24/7 customer service via phone. Compared to brick-and-mortar banks, it provides competitive interest rates and accounts with low minimum opening balance requirements.
If you’re part of the Hispanic community, you may also benefit from services in both Spanish and English as well as a financial literacy education program that’s focused on low-income Latino families and immigrants.
11. Boeing Employees’ Credit Union
If you’re a Boeing employee or live or work in Washington, Boeing Employees’ Credit Union can be a good fit. Just keep in mind that you’ll be required to open the Member Advantage Savings account, Member Share Savings account or Early Saver account.
You can enjoy nationwide access to more than 30,000 free ATMs, discounts on local events, such as sporting games and fairs and impressive rates on CDs, money markets and IRAs. Plus, there are no monthly service fees or minimum balance requirements.
Other noteworthy perks include free credit score monitoring, Zelle payments, online bill pay, and budgeting tools. You can find more than 50 physical branches in Washington as well as one location in North Charleston, South Carolina, for in-person banking.
12. Blue Federal Credit Union
Blue Federal Credit Union began as Warren Federal Credit Union and has been in business for more than 70 years. It offers more products than most credit unions, including checking accounts, savings accounts, credit cards, home loans, personal loans, and investment banking. This is great news if you’d like the diverse offerings that are widely seen at banks at lower price points.
In addition to a vast selection of financial products, Blue Federal Credit Union provides rates as high as 2x to 5x higher than the national average and access to thousands of partner credit unions across the nation. Thanks to the tiered membership rewards program, you can earn great rewards.
To join, donate to the Blue Foundation and open a Blue FCU Membership Share Savings account. Once you’re a member, you can bank online, visit branches in Colorado or Wyoming, or go to shared branches across the U.S.
13. Wings Financial Credit Union
Wings Financial Credit Union is worth exploring, even if you don’t work in the aviation industry. It has more than 26 branches in Minnesota, Michigan, Florida, Georgia, and Washington. Not only is it NCUA insured, it’s part of the Allpoint, CO-Op, and MoneyPass ATM networks that offer access to more than 80,000 free ATMs.
To become a member, you should live in work in an eligible location, work in the aviation industry, or make a $5 donation to Wings Financial Foundation, a non-profit organization that offers financial education programs and college scholarships.
The credit union pays high interest rates on many of its accounts and doesn’t charge monthly service fees. Depending on your goals, you can open the Wings Financial High-Yield Savings Account, Wings Financial Credit Union High-Yield Checking Account, Wings Financial Investment Money Market Account.
14. NASA Federal Credit Union
NASA Federal Credit Union dates back to 1949 when it first launched to serve NASA employees. Over time, the credit union has expanded and has more than 140,000 members to date. You can join even if you’re not affiliated with NASA as long as you become a member of the National Space Society.
Popular product offerings at NASA Federal Credit Union include the Premier Checking, Premier eChecking, Premier Preferred Checking, Shared and Special Savings account or Education Savings Account.
We can’t forget the Star Trek credit cards which offer 2x points for gas station purchases, and 3x points for purchases at StarTrek.com. Furthermore, if you spend $3,000 in the first 90 days, you get a bonus of 30,000 points. You may redeem your points for merchandise, gift cards, and more.
Credit Unions vs. Banks
If you’re used to banks or unfamiliar with credit unions, you might wonder how credit unions and banks compare. The truth is both types of financial institutions offers similar products, but there are several differences between them, including:
Financial Products
In general, banks offer more financial products and services than credit unions, especially large banks with a national presence. Credit unions primarily focus on checking accounts, savings accounts, and credit accounts. While loans and investment products are less common, they can still be found at some credit unions.
Rates and Fees
Banks tend to charge higher rates and fees than credit unions. However, online banks are usually more affordable and comparable to credit unions as they have lower overhead costs. It’s a good idea to shop around so you can compare rates and fees at a variety of financial institutions and hone in on the best option.
Technology
Credit unions typically are less technologically advanced than banks. The good news is more and more credit unions, especially those with a nationwide presence, are improving their technical offerings. Many of them offer mobile apps, online bill pay, and other advanced banking tools that were unheard of in the past.
Bottom Line
With this list of the best credit unions nationwide, you’re sure to find a credit union or two that checks all your boxes. Whether you’re new to credit unions or have used them for a while, these types of financial institutions can help you meet (or even exceed) your personal finance goals.
Credit Union FAQs
What is the difference between a bank and a credit union?
While a credit union is a member-owned, non-profit institution, a bank is a for-profit financial institution that is owned by shareholders or individuals. Credit unions are known for more personal service and flexibility. Whether you use a bank or credit union depends on your unique goals and priorities.
Do I have to join a credit union?
All credit unions may have certain membership requirements. Fortunately, many are lenient and let you join if you make a donation or pay a fee. Some credit unions will pay for you once you make a deposit into an account. Of course, some credit unions limit membership to people in certain geographical locations or professions.
Do credit unions have ATMs?
Yes! In many cases, credit unions partner with a large network of ATMs. This makes it easy for you to access your money regardless of where you are.
Are credit unions insured?
Reputable credit unions are insured by the National Credit Union Administration or NCUA, which is similar to the Federal Deposit Insurance Corporation or Federal Deposit Insurance Corp of traditional banks. This means if the credit union fails because of bankruptcy, for example, you’ll get your money back.
Are credit unions online?
While credit unions have a reputation for in-person branches with individualized service, online credit unions do exist. Several examples include Alliant Credit Union, Connexus Credit Union, and Quorum Federal Credit Union. If you like the idea of online banking, an online credit union might make sense.
What is the best nationwide credit union?
Not all nationwide credit unions are created equal. In fact, there are many options available with various pros and cons. To pinpoint the ideal online or local credit union for you, explore the institutions on this list and consider your priorities. Remember, you can join multiple credit unions if you’d like.
According to a new survey from NerdWallet, 84% of Americans with a monthly budget say they’ve sometimes exceeded their budget. The survey, conducted online by The Harris Poll on March 31-April 4, 2023, among more than 2,000 U.S. adults ages 18 and older, found that around three-quarters (74%) of Americans have a monthly budget.
Key findings
Most Americans overspend, and many use credit cards to cover it. The survey found that 83% of Americans say they overspend, and a similar proportion who have a monthly budget (84%) say they exceed it. Of those who’ve ever gone over their monthly budget, 44% say they usually use a credit card to pay for the additional purchases they make when going over budget.
Youngest U.S. adults are more likely to say their generation has it worse. Nearly 1 in 5 Americans (18%) think their generation is bad at managing money and nearly 3 in 5 Americans (57%) think their generation has had a harder time making ends meet than any other generation, the survey finds. Younger Americans are more likely to make each of these assertions.
Emergency savings is a financial priority for many. Close to half of Americans (48%) say they want to prioritize emergency savings, according to the survey. Other popular financial priorities for Americans are investments (36%) and retirement planning (35%).
“Savings accounts offer a buffer against life’s unexpected twists, from job loss to unplanned expenses,” says Kimberly Palmer, a personal finance expert at NerdWallet. “Funding one can make the difference between relative financial stability or being unable to pay for everyday essentials.”
An emergency fund is a top priority for nearly half of Americans
Most Americans (92%) have one or more financial areas they want to prioritize. The most common of these priorities is emergency savings (48%), followed by investments (36%) and retirement planning (35%).
Millennials (ages 27-42) and Generation Xers (ages 43-58) are the most likely to say they want to prioritize emergency savings, with 56% and 52%, respectively, saying it is a desired area of focus. That’s compared with 38% of Generation Zers (ages 18-26) and 44% of baby boomers (ages 59-77).
Many Americans have very little emergency savings socked away. According to 2022 Consumer Financial Protection Bureau data, 24% of Americans have no emergency savings, and an additional 39% have less than one month’s income saved.
After emergency savings, investments (36%), retirement planning (35%), budgeting (34%) and travel savings (34%) rounded out the top five financial priorities. Americans with an annual household income of $100,000 or more want to prioritize investments (48%) and retirement planning (47%) at a much higher rate.
For parents of children under 18, priorities vary, perhaps to account for their children. For instance, holiday savings is a focus for 37% of those parents, compared with 18% of those without children under 18. Similar differences appeared for saving for a home (38% versus 17%) and saving for education expenses (29% versus 8%).
Many common educational savings plans can help savers by giving them some tax advantage. Parents and grandparents can make their educational dollars go further by taking advantage of these plans.
Millennials (36%) and Gen Xers (37%) are more likely to say they want to prioritize paying off credit card debt. Just 29% of boomers and 22% of Gen Zers want to prioritize credit card payments.
What you can do: Set a financial goal or priority if you haven’t yet
If you’re in the 8% of Americans who don’t have a financial area they want to prioritize, now is the time to set your financial goals. Think of it as a spring cleaning for your finances and a way to get yourself set up not just for the rest of the year, but also for the rest of your life.
“Setting clear financial goals makes it easier to determine the small action steps we need to take in order to make them a reality. That could include opening up a new savings account or contributing more to retirement,” Palmer says.
Overspending is common, despite monthly budgeting
Nearly three-quarters of Americans (74%) have a monthly budget. Millennials are most likely to say this — 83%, versus 76% of Gen Zers, 74% of Gen Xers and 67% of baby boomers.
Some Americans are willing to go without a budget. Just 23% of Americans say they feel like they need a budget to get by every month. Boomers are the least likely to need that support. Only 13% feel they need a budget to get by compared with 32% of Gen Zers, 29% of millennials, and 26% of Gen Xers.
A budget isn’t necessarily the solution to overspending. While close to a third of Americans (32%) say they review their budget and spending on a regular basis, 16% say they often spend more than they budget for each month. And when the money isn’t in the budget, it still has to come from somewhere.
Going over budget is nearly universal
According to the survey, of Americans who have a monthly budget, 84% say they’ve gone over budget at some point. More than 2 in 5 of those who have gone over budget (44%) say they usually pay for additional purchases they make with a credit card.
A majority of Americans (83%) say they overspend, at least sometimes. Food is a major reason for overspending — nearly half of Americans (47%) say groceries are among the spending categories they find themselves overspending on most often each month, while 34% say the same about dining out.
Inflation is likely a contributing factor. Over the past year, the cost of food at home has increased by 8.4% and food away from home has increased by 8.8%, as of March 2023, according to the U.S. Bureau of Labor Statistics.
Holding on to the budgetary reins
About 1 in 6 Americans (17%) say they don’t overspend on any products or services each month. Baby boomers are most likely to make this assertion — 31%, versus 14% of Gen Xers and 7% each of millennials and Gen Zers. Interestingly, baby boomers (67%) are least likely to have a monthly budget, and millennials (83%), who are in their peak earning years, are the most likely to have a budget (compared with 76% of Gen Zers and 74% of Gen Xers).
There’s also a subset of Americans who plan to overspend and set savings aside for it. One in 5 Americans (20%) who have gone over their monthly budget say they’ve dipped into savings specifically earmarked for overspending to pay for additional expenses.
What you can do: Take steps to avoid overspending
There are expenses where many could find themselves with no choice but to overspend, such as for medical costs, food when prices jump, or any number of necessities when a breadwinner gets laid off or switches jobs.
That just means it’s even more important to plan for the things you can control. Almost 1 in 4 Americans (24%) say they’ve often overspent on entertainment streaming services. There are plenty of ways to resist the urge to overspend on those products and services, which will hopefully leave more in the bank for unavoidable events.
Generational beliefs about finances differ
Every generation has its challenges, but not every generation agrees on what those challenges are. Just over half of Americans (57%) say their generation has had a harder time making ends meet compared with any other. Millennials (72%) and Gen Zers (68%) are more likely to agree with that sentiment compared with Gen Xers (56%) and boomers (39%).
About a third of Gen Zers (36%) also say their generation is bad at managing money (compared with 25% of millennials, 14% of Gen Xers and 10% of boomers). Education may play a role in that outlook. Roughly 1 in 5 Gen Zers (21%) think they learned all they needed to know about budgeting when they were a kid. (Millennials, at 18%, feel similarly.)
Baby boomers keep income details to themselves
Overall, 69% of Americans say it’s rude for a person to talk about how much money they make. Baby boomers are the most likely to agree with that sentiment. About 8 in 10 (81%) are put off by the idea of talking about income. Just about half of Gen Zers (47%) think talking about income is rude, and 65% of millennials and 71% of Gen Xers feel the same.
Boomers are also less likely to say they feel societal pressure to spend money. Just about 1 in 5 boomers (18%) say they often spend more than they budget for because of societal pressure from, for example, family, friends or social media. Conversely, 57% of Gen Zers and half of millennials (50%) say the same thing. Gen Xers fall between the poles at 35%.
Thoughts on tipping and fees
About a third of Americans (32%) say sellers’ fees have gone up in the past year. These are the fees companies or individuals add to a purchase that often aren’t reflected in the base price. Fuel surcharges at the airport, airport fees for a ride-sharing app and order processing fees from ticketing companies are examples.
When it comes to tipping, the generations are in agreement. Overall, about a third of Americans (34%) say tipping, when the option is present, is mandatory (35% of Gen Z, 35% of millennials, 31% of Gen X and 35% of baby boomers). About the same proportion of Americans (29%) feel like the pressure to tip more has increased for them over the past year.
Boomers are most likely to want the option to tip as opposed to facing increased fixed costs. About 2 in 5 boomers (41%) say, when dining out, they would prefer to tip versus seeing restaurants increase menu prices so tipping isn’t required (compared with 25% of Gen Zers, 31% of millennials, and 29% of Gen Xers).
Baby boomers (4%) are also the least likely to say they judge their friends based on how much they tip. Gen Zers (11%), millennials (15%) and Gen Xers (7%) are all more likely to be judgmental of friends when it comes to tipping.
Baby boomers feeling pinched
Boomers may be more likely to feel the pinch of inflation. Just 5% of baby boomers say their dollar goes farther now than it did a year ago. About 1 in 5 Gen Zers (19%) say the same thing, followed by 16% of millennials and 10% of Gen Xers.
Baby boomers and Gen Xers are also more likely to say portions at restaurants are getting smaller (42% and 39%, respectively) compared with Gen Zers (29%) and millennials (33%).
Part of that may be boomers having a better understanding of the realities of inflation. When we asked Americans if the annual U.S. inflation rate was above 10% (at the time it was 5%), 44% of boomers correctly identified that it wasn’t. Just about 1 in 5 Gen Zers (19%) and millennials (18%), and roughly 1 in 4 Gen Xers (24%), got it right.
What you can do: Find ways to save, even when times are tight
Managing your money is much more difficult when you don’t have a buffer. Finding a way to save, no matter what generation you belong to, can help you cope when prices increase or attitudes toward costs shift.
“Cutting back on recurring costs such as subscriptions, shopping around when insurance and phone contracts come up for renewal, and timing necessary big-ticket purchases to sales can all help free up money for additional savings,” Palmer says.
You can also take a look at your tipping to better understand what you can and should control. Tipping often feels mandatory because some people rely on tips for a living wage. Knowing what you’re providing and what it means to opt out can help you make better-informed decisions, and can have a positive impact on your spending.
Methodology
This survey was conducted online within the U.S. by The Harris Poll on behalf of NerdWallet from March 31-April 4, 2023, among 2,070 U.S. adults ages 18 and older. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this survey, the sample data is accurate to within +/- 2.8 percentage points using a 95% confidence level. For complete survey methodology, including weighting variables and subgroup sample sizes, contact Sarah Borland at [email protected]
Disclaimer
NerdWallet disclaims, expressly and impliedly, all warranties of any kind, including those of merchantability and fitness for a particular purpose or whether the article’s information is accurate, reliable or free of errors. Use or reliance on this information is at your own risk, and its completeness and accuracy are not guaranteed. The contents in this article should not be relied upon or associated with the future performance of NerdWallet or any of its affiliates or subsidiaries. Statements that are not historical facts are forward-looking statements that involve risks and uncertainties as indicated by words such as “believes,” “expects,” “estimates,” “may,” “will,” “should” or “anticipates” or similar expressions. These forward-looking statements may materially differ from NerdWallet’s presentation of information to analysts and its actual operational and financial results.