Americans Believe They Will Need $1.27 Million to Retire Comfortably, According to Northwestern Mutual Planning & Progress Study High-net-worth individuals expect to need $3 million to retire Gen Z aims to retire at age 60 – and expects to live to age 100 Expected retirement age climbs significantly in two years to 65 from 62.6 … [Read more…]
If you haven’t started your children or teens off with a kids checking account optimized for their needs, you’ll want to help your college student open a checking account before they begin school.
Opening a checking account for your child can teach them about money management and financial responsibility, along with providing them an easy way to make debit card purchases. It’s never too late to get started.
One advantage to helping your young adult open their first student checking account is they have more options than they might have when they were 16 or younger. Students over 18 can open a bank account with few restrictions.
But choosing a student checking account may give them access to higher interest rates and added features and benefits, along with fee-free checking, no monthly maintenance fees, and no minimum deposit to open an account.
12 Best Student Checking Accounts
Not surprisingly, many of the best student checking accounts come from banks that also offer some of the best checking accounts for any age. However, the products below – in most cases – are tailored for young adults from the ages of 18 to 24, with the features this age group desires most, including an intuitive mobile app and low or non-existent minimum deposit requirements.
1. Best for Students under 18: Capital One MONEY Teen
Most of the student bank accounts on our list exclude children under the age of 17 or 18. Capital One MONEY Teen checking is available to children ages 8 and up. It comes with all the benefits and security of a big bank, providing peace-of-mind. This includes access to Capital One branches and Capital One Cafes for in-person service. This account also serves as a great tool to teach your young adult the basics of banking.
Capital One MONEY Teen checking is a joint account with no monthly fee, no overdraft fees, and access to 70,000 ATMs with no fees. Plus, earn 0.10% on all balances, including those in checking.
You can link Capital One MONEY Teen checking to any other bank account through any bank or neobank, making it easy to transfer money to your teen while they are away at college. Plus, you can keep tabs on their spending with their linked account in the Capital One mobile app.
When they graduate, your teen can hold onto their MONEY account or transfer the funds into a top-rated Capital One 360 Checking account of their own.
2. Best for Working Students: Chime
Chime is not a bank. It’s a financial technology company and mobile app backed by Stride Bank, NA, and The Bancorp Bank. Many features make it perfect for working students. First, you can receive your paycheck up to two days earlier than you might at other banks with ACH deposit.
Plus, you can set up automatic transfers to your linked Chime Savings account, helping you to establish good financial habits early on. Simply set up Chime to transfer a percentage of your paycheck into your Savings Account every time you receive a direct deposit.
When you use your debit card for purchases, the “Save When You Spend” program rounds up your purchase and transfers the difference directly into savings. That small change can really add up, whether you’re saving for your first apartment after college, a new car, or your next tuition bill.
For working students looking to build their credit, Chime gives account holders access to a Credit Builder Secured Visa, with no annual fee, no credit check, and no security deposit required. Instead, the credit account is secured by your Chime checking account with monthly direct deposits.
Like many of the best student bank accounts on this list, Chime has no overdraft fee, no monthly service fee, no ATM fee for in-network ATMs, and no minimum balance requirements.
3. Best Account Opening Bonus: Chase College Checking
Chase Bank has been handing out student account opening bonuses like they hand out lollipops at their branches lately. College students ages 17 to 24 can snag a $100 bonus when they open an account online or at a local branch (students age 17 will need to visit a branch). You’ll just need to make 10 qualifying transactions within the first 60 days of opening the student bank account.
What’s a qualifying transaction? Virtually anything, according to the Chase website, including debit card purchases, online bill payments, Chase QuickDeposits, Zelle transfers, and ACH credits. Bank as you normally would, and you should easily earn that $100.
In addition to the generous sign-up bonus, Chase College Checking has no monthly fees for college students for up to five years, access to 16,000 ATMs and 4,700 branches across the U.S., and zero liability protection for unauthorized debit card purchases.
Chase Overdraft Assist covers purchases that exceed your account balance. You’ll pay no overdraft fee if you’re overdrawn by $50 or less at the end of the next business day.
4. Best for Yield: Ally Interest Checking
Ally Bank is the first bank on our list not designed specifically for students, but the vast array of features in this interest bearing checking account makes it ideal for young adults.
Ally Bank offers an APY of 0.25% on checking account balances and 4.00% APY on balances in a linked Ally Bank savings account. Neither account has any monthly fees.
Ally offers several features to help those on a tight budget manage their money. You can organize your money into spending and saving buckets, which can help you see exactly where your money goes each month. Ally will also review your bank accounts and help you find opportunities to save, and shuttle that extra money into your high yield Ally savings account.
Customers who have deposited $100 or more into their Ally checking account, or $250 via direct deposit, gain access to Ally’s CoverDraft service after 30 days. This protection covers up to $100 or $250 in charges that would overwise overdraft your account. Some purchases, including Zelle transfers, or ATM withdrawals, may be declined if they would put your account into overdraft.
Ally has no monthly maintenance fee, no overdraft fees, no ATM fee for in-network ATM transactions and no minimum balance requirement.
5. Best for Referrals to Earn Extra Cash: GO2bank
GO2bank, the digital bank associated with the top financial technology company Green Dot, offers an easy, straightforward money account with overdraft protection up to $200 with eligible direct deposits. The linked savings account pays a high 4.5% APY, with no fees for qualifying customers and no minimum balance requirement.
You can get regular ACH deposits from your job or side gigs up to two days earlier than most traditional banks. If you receive government benefits, such as Social Security, you can receive those deposits up to four days early.
Your GO2bank account will have a monthly service fee that costs $5 per month, unless you have a qualifying direct deposit that month. You will also pay fees for transfers from a linked debit card from another bank or fintech, mobile check deposits, and cash deposits.
If you are the type of person with friends who come to you for advice, you can earn $50 for each friend you refer to GO2bank who signs up with direct deposit. Your friend will also earn $50. You can use this offer for up to 30 friends, yielding $1,500 annually. This makes a GO2bank account great for social media influencers or college students with a large friend group.
6. Best for Full-Service Banking: Bank of America Advantage SafeBalance Banking
Bank of America Advantage checking accounts offer options for people in various stages of their financial life. College students might be best to start out with Bank of America Advantage SafeBalance banking, a straightforward money account with no overdraft fee and no checks.
The account has no monthly fee for students under the age of 25 or customers under the age of 18. Preferred Rewards customers also receive free checking. There is a $25 minimum deposit to open an account.
New Bank of America customers can earn a $100 account opening bonus when they open an account and set up direct deposits of $1,000 or more within 90 days.
7. Best for Comprehensive Money Management: PNC Virtual Wallet Student
Money Magazine named the PNC Virtual Wallet on its best banks for students list three years running. PNC Bank divides this mobile account into three separate accounts for everyday spending, “reserve,” or short-term savings, and “growth” for long-term savings.
The account has no monthly service fee for students for up to six years, along with all the benefits of a regular PNC Virtual Wallet. Additionally, students receive a courtesy refund of your first overdraft fee on your Spend account, one free incoming domestic or international wire transfer per statement period, and free paper statements if you opt in to receive them.
Once six years have passed or you are no longer a student, your account converts into a regular PNC Virtual Wallet, which may have associated monthly fees. Check the PNC website at that time to determine the fees and how you can waive them.
Your PNC Virtual Student Wallet pays a 0.01% APY on money in your Reserve account, and .02% on account balances up to $2,499 in your Growth account, with .03% APY on balances over $2,500. These may not be the best rates available, but the reputation of PNC Bank, along with the money management features in a Virtual Wallet Student account, make this an account worth considering for students just learning to budget.
8. Best for Establishing Savings Habits.: Wells Fargo Clear Access Banking
As one of the Big Four banks in the U.S., Wells Fargo offers a reliable and safe place to store your money, plus access to thousands of branches nationwide.
The Wells Fargo Clear Access banking account is great for teens and college students, since it’s available for account holders ages 13 to 24. Anyone under the age of 18 will need to open their account in a branch and anyone younger than 17 must have an adult aged 18+ as a joint account holder. The account has no monthly maintenance fee for anyone 24 or younger. A $25 minimum opening deposit is required.
Wells Fargo Clear Access banking is a simple, straightforward money account with no checks and personalized service at Wells Fargo branches. There are no overdraft fees with the account, but also no overdraft protection. Transactions that exceed the account or minimum balance amount will be declined, which helps put teens and young adults in charge of their money.
You can link your Clear Access bank account to a Way2Save Savings account and earn a 0.15% APY. You can establish good money habits by setting up automatic savings. Wells Fargo will transfer $1 from your Clear Access account into your checking account each time you use online bill pay or use your debit card for a one-time purchase. You can also transfer as little as $25 per month or $1 per day into your account to see your savings grow even faster.
9. Best for Cash Back: Discover Cashback Debit
The Discover Cashback Debit account may not be marketed to teens and students, by name. But, it’s enticing to anyone looking for a standard checking account with no monthly service fees and 1% cashback on debit card purchases, up to $3,000 per month. It’s highly unlikely for most college students to max out that free money (unless they are putting housing, tuition, and car expenses on their card).
Discover Cashback! debit card offers many of the benefits you’d expect from these top-rated money accounts, including early direct deposit, 60,000+ no-fee ATMs, and overdraft protection from your linked Discover Savings with no fees. Discover charges no fees for insufficient funds, bank checks, regular checks, or expedited delivery of a replacement debit card.
These features make it one of the most convenient accounts you can hold. Plus, you don’t have to worry about “aging out” of the account and facing fees for a non-student bank account. Your Discover Cashback Debit account will be free no matter your age. Link it to a Discover Savings Account to earn 4.0% APY with no minimum deposit required.
10. Best for Unlimited Out-of-Network ATM Fee Reimbursement – Axos Bank Rewards Checking
Another bank account not marketed to students but meeting all their needs is the Axos Bank Rewards Checking account. This account has no monthly fees. It also reimburses ATM fees for out-of-network ATMs nationwide, which is great for students who travel domestically or who don’t have ATMs in their network on campus.
Pay no overdraft fee or non-sufficient funds fees with this account. Best of all, earn an APY of 0.40% on your checking balance if you receive monthly direct deposits of $1,500-plus. Young investors can ramp up their interest rate by 1% with an average daily balance of $2,500 in an Axos Invest Managed Portfolio Account, plus another 1% by holding $2,500 in a self-directed trading account. If you take out a loan through Axos, you can add another 0.60% to your APY.
College students likely won’t regret opening an Axos Bank account to take them through adulthood, especially with options for investing, low mortgage rates, car loans, and more.
Plus, earn a welcome bonus when you open an account and have direct deposits of at least $1,500 within a single calendar month during the first three months of account opening.
11. Best Credit Union: Alliant Credit Union Teen Checking
Alliant Credit Union offers a teen checking account for minors ages 13 to 17. The account is insured up to $250,000 per account holder by the National Credit Union Administration (NCUA). The adult account holder must be an Alliant Credit Union member. But it’s easy to join by depositing $5 into an Alliant Credit Union saving account. Alliant Savings earns an APY of 0.25%.
The teen checking account has no overdraft fees or non-sufficient funds fee. It also has no monthly fees or minimum balance requirements. Account holders gain access to 80,000+ fee free ATMs nationwide plus $20 per month in ATM fee reimbursement for out-of-network ATM use. This is an interest earning checking account which also pays 0.25% APY on all balances as long as you have at least one deposit, via ACH direct deposit, mobile check deposit, or transfer from another bank or credit union, each month.
12. Best for Young Shoppers: Varo Bank
Varo Bank is another account not necessarily marketed to college students but definitely optimized for their needs. The Varo Bank debit card delivers up to 6% cash back, with money deposited into your Varo account as soon as you accrue $5 in rewards.
Like many of the best student accounts on this list, Varo has no monthly fee, no minimum balance requirements, and no overdraft fee. If you need money before payday, you can use Varo Advance, an interest-fee program that allows you to borrow up to $250 and pay it back within 30 days. You will not pay fees to borrow less than $20. Borrowing up to $250 comes with fees that can be as high as $15, depending on the amount of cash advance you need.
Varo Bank uses the Allpoint network of ATMs, with fee free access to 55,000+ ATMs nationwide. Using other bank ATMs could result in charges up to $3 from Varo and fees charged by the other banks, as well.
It pays to open a linked Varo Bank savings to take advantage of a high 3% APY. Account holders with direct deposits equal to $1,000 per month and a positive balance in their Varo checking and savings can earn up to 4% APY.
One of the best things about a Varo account is it can grow with you. You won’t pay additional fees as an adult out of college, so you can keep the same bank account you started with for your entire life if you want.
Methodology: How We Select the Best Student Checking Accounts
To find the best student checking accounts, we evaluated the monthly maintenance fees, ATM fees, minimum deposit requirements, features, benefits, banking services provided, along with customer service and mobile app access at several of the biggest and most well-known banks and credit unions.
ATM Network
Most banks have ATM networks or partner ATM networks of 20,000 or more ATMs nationwide where you can use your debit card with no ATM fees. You might be surprised to learn that even online banks and financial technology companies that are not a bank provide access to thousands of ATMs nationwide through partner programs.
Nationwide availability (physical locations or mobile access)
College students often split time between their college campus and the home where they grew up. Finding a bank with physical locations in the areas they live or an online bank that provides a mobile banking app with fee free mobile banking from anywhere is important.
Fees and minimum requirements
Bank fees no longer have to be a way of life for today’s young adults. We chose financial institutions with no monthly maintenance fees or easy ways to waive maintenance fees.
Benefits such as high APY, cash-back rewards, or other additional perks
Student checking accounts today are more than just “bare bones” places to store your cash. Many student bank accounts offer perks, benefits, and high-yield savings or an interest bearing checking account to provide added value.
Overdraft fees
Cash management mistakes happen, especially when young adults first start learning to budget and manage their finances. Many banks have no overdraft fees and some offer overdraft protection to help out in a pinch.
How to Choose the Best Bank for College Students
We’ve offered 12 solid options to help you choose the best student checking account. Before you open a student bank account, it’s a good idea to think about what you need in your primary checking account and a linked savings.
The list below makes it easy to review your must-haves and nice-to-haves when you choose your first bank account as a college student.
Best student checking account interest rates
If you’re looking to earn interest on your standard checking account, many banks offer this feature. Review annual percentage yield (APY) figures for your top choices.
Remember, a higher savings interest rate might benefit you more, since money in your checking account tends to fluctuate based on paychecks, bills, and expenses. The best checking account may not pay interest, but can save you money in other ways.
Annual Percentage Yield (APY)
Likewise, you can put money in your pocket with an account with linked savings offering a high annual percentage yield (APY).
Mobile Check Deposit
If you get paid via paper checks, you’ll want to find an account with a mobile app that offers mobile check deposit. Find out how fast deposits clear, and if mobile banking services are fee free.
No Monthly Maintenance Fees
Many banks today make it easy to find a free checking account with no maintenance fees. If you have to pay a monthly maintenance fee, find out exactly what you’re getting for your money. Find out if the perks and benefits, such as a cash back debit card or reimbursement of ATM fees make the maintenance fees worthwhile.
Minimum Deposit and Minimum Balance Requirements
When you’re just getting started, cash may be tight. It’s important to find an account with no minimum deposit to open.
Banking Services Provided
Accounts should have customer service online, by phone or in branches, plus an easy-to-use mobile app and a debit card with no ATM fees.
FAQs About Student Checking Accounts
Read what people are asking about the best student checking accounts, including minimum deposit requirements and benefits of a student checking account.
What are the benefits of a student bank account?
A bank account tailored for students gives young adults a head start on their financial future and learning how to manage money. For students who work, they can receive direct deposits in their student account, pay bills online, and send money to friends and family using Zelle.
How to get a student checking account bonus?
Several student checking accounts, including Chase, provide sign-up bonuses. Make sure to read the fine print and complete the requirements, which may include setting up direct deposit or making a minimum opening deposit, to collect the bonus.
Can I open a student checking account without a deposit?
To open a student checking account without a minimum deposit amount, simply look for a bank account, like Varo, that has no minimum opening deposit.
Are there any downsides to opening a student checking account?
When you open a student checking account, you’ll want to make sure you won’t pay monthly maintenance fees. Some student checking accounts convert to a regular account once the student graduates, and there may be fees associated with the regular account.
Is there an age limit on a student checking account?
Most student checking accounts are open to students from the age of 18 to 24 without a joint account holder. Customers under the age of 18 may be able to open an account with a joint owner.
Can minors open student checking accounts?
Accounts like Capital One Money Teen are available to children ages 8 and up with a joint account holder. Some other accounts require students to be 18 or older.
What happens to your student checking account when you graduate?
Many of the student bank accounts on this list won’t change when you graduate college. Others offer the option to convert your account to one of the bank’s regular checking products. A Chase College Checking Account has no monthly fees for your first five years in college, but if you graduate or exceed that time frame, you might pay a $6 monthly maintenance fee unless you meet other requirements.
Opening a bank account online has not only become an effortless task but also a smart move towards managing your finances with ease. This guide will help you understand the benefits, requirements, and steps to transition your banking experience into the digital realm.
This will give you control and accessibility like never before. Embrace the future of banking today and discover how opening a bank account online can be a game-changer for your financial journey.
Understand Your Banking Needs
Determining your banking needs is a crucial first step in choosing the right account. Are you looking for a secure place to deposit your paycheck, withdraw cash, and manage your bills? A checking account could be your answer. It’s an excellent tool for everyday transactions, providing features like check writing, debit card access, and often, the ability to set up direct deposits.
Alternatively, if you have a financial goal in mind, such as saving for a down payment or creating an emergency fund, a savings account could be more suitable. These accounts typically offer higher interest rates compared to checking accounts, allowing your money to grow over time.
It’s worth noting that many people maintain both checking and savings accounts. The checking account serves as a hub for daily transactions, while the savings account functions as a reservoir for longer-term savings and investment goals. Your specific mix will depend on your personal financial needs and goals.
Choosing the Right Bank
Finding the right bank depends on your individual needs and preferences. There are three main types of banks to consider: traditional banks, credit unions, and online banks.
Traditional banks offer a wide array of services like various types of accounts, credit cards, and loans. They are great if you prefer having in-person access to services and a large network of ATMs.
Credit unions are member-owned and often excel in customer service. They generally offer better interest rates on savings accounts but may have less online and physical accessibility than traditional banks.
Online banks operate purely online, which often allows them to offer lower fees and higher interest rates. They’re a good choice if you’re comfortable doing all your banking digitally.
No matter which type of bank you choose, make sure it’s FDIC insured to protect your money. Also, consider the bank’s fees, such as monthly service and ATM fees, as they can add up over time. A bank with fewer fees or options to waive them could save you money.
Requirements for Opening a Bank Account Online
Once you’ve decided on your banking needs and the financial institution, it’s time to gather the necessary information to open your bank account online.
Most financial institutions will require:
Personal Information: Your legal name, date of birth, and Social Security number.
Contact Information: A valid mailing address and phone number. Banks typically require these to verify your identity and as part of their communication and security protocols.
Identification: A valid form of identification such as a driver’s license, state ID, or passport. You may need to provide the ID number and expiration date.
Initial Deposit: Some banks may require an initial deposit to open the account. You can usually fund this by transferring money from an existing account or using a credit or debit card.
Before starting, it’s helpful to check the specific requirements of your chosen bank, as requirements may vary from one financial institution to another.
Step-by-Step Guide on How to Open a Bank Account Online
Taking your banking experience online might seem intimidating initially. However, the process is typically straightforward, taking just a few minutes. Follow this step-by-step guide to set up your bank account online.
Visit the bank’s website: Begin by visiting the official website of your chosen bank or credit union. Look for the “Open an Account” or “Apply Now” option, typically found in the main navigation or home page.
Fill out the application form: The bank will prompt you to fill out an application form requiring your personal information. This includes your full name, mailing address, and Social Security number. You may also need to provide a valid form of identification and employment information.
Verify your identity: As part of the process, you’ll be asked to verify your identity. This could involve answering security questions based on your credit history or providing a valid ID. This step is crucial to protect against identity theft and fraud.
Fund your account: Most banks require an initial deposit when opening a new account. You can fund your account via a transfer from an existing bank account, a credit or debit card, or even a check. The required deposit varies from bank to bank, with some online banks allowing you to open an account with no initial deposit.
Confirm and finalize your account setup: Once you’ve completed these steps, you’ll receive a confirmation email or message from the bank. This message usually contains instructions on how to set up online banking, including setting up your username and password.
What to Do After Opening Your Account
With your bank account online set up, it’s vital to get acquainted with all its features and maximize them for your convenience and financial growth.
Set up direct deposit: Direct deposit is a crucial feature to set up as soon as your account is active. It allows your paycheck to be automatically deposited into your account, saving you from manual deposits and giving you quicker access to your money.
Learn to use online banking features:Familiarize yourself with key online banking features. Bill pay, for instance, can automate your monthly payments, ensuring timely transactions without manual intervention. Mobile check deposit lets you deposit checks without the need to visit a bank branch, and the money transfer feature enables seamless transfer of funds between accounts or to friends and family, making your banking experience both quick and hassle-free.
Regularly review your account statements: Regular monitoring of your account statements is a good financial habit. It helps track your spending, review any account fees, and promptly detect any suspicious activity or discrepancies. This practice keeps you aware of your financial status and ensures the security of your account.
The Importance of Regularly Reviewing Your Banking Needs
As life unfolds and your circumstances evolve, so too do your banking needs. Major life events – a career shift, marriage, welcoming a child, or even retirement, could alter your financial landscape significantly.
Perhaps a job change comes with a pay increase, necessitating a better savings strategy, or marriage might call for a joint account. A new child could lead you to start a college savings account. These changes underscore the importance of regularly reassessing your banking arrangements.
Every few years, or at the occurrence of significant life events, it’s beneficial to review your banking needs. This regular review ensures your financial arrangements align with your life’s dynamics, ensuring your money is working for you at every stage.
Bottom Line
Opening a savings or checking account online is an easy and efficient process, offering you the freedom to manage your finances at your fingertips. But remember, the process doesn’t stop with opening an account.
Make sure to fully utilize the features of your online account, keep a close eye on your statements, and adjust your banking needs as your life changes. Stay informed and proactive in your approach to banking – this way, you ensure that your online bank account serves you effectively in every phase of your financial journey.
Frequently Asked Questions
Can I open a bank account online without a deposit?
Yes, certain banks allow you to open an account with no opening deposit. However, they may require you to fund the account within a specific time frame to keep it active.
What should I do if I don’t have a Social Security number?
If you’re an international resident without a Social Security number, you might still open a bank account using an Individual Taxpayer Identification Number (ITIN), passport, or other forms of identification. It’s advisable to contact the bank directly for their specific requirements.
How old do I need to be to open a bank account online?
Typically, the minimum age to open a bank account online is 18. For those under 18, many banks offer the option of joint accounts with a parent or guardian, or specific accounts designed for minors.
Can I open multiple bank accounts online?
Yes, you can open multiple bank accounts online, including a mix of checking and savings accounts, depending on your financial needs. It’s important to consider potential monthly fees and the ease of managing multiple accounts.
Is it safe to open a bank account online?
Opening a bank account online is generally safe as long as you’re using a secure network and are applying through the official website of a reputable bank or credit union. Always look for indications of security, like the “https” at the beginning of the web address.
What should I do if I face issues while opening a bank account online?
If you encounter any issues while opening a bank account online, the best course of action is to contact the bank’s customer service for assistance. They can guide you through the process or resolve any technical glitches you might be facing.
I made my last credit card payment this week! That final payment ends more than ten years and $20,000 of credit card debt.
Getting out of credit card debt is a familiar story to readers of Get Rich Slowly. You wake up to that fact that your finances are a sinking ship, so you learn to track your spending, and that helps you figure out where your money goes. From there, you scale back your expenses and spending. You look for ways to boost your income. You start a debt snowball. Pretty soon, you’re paying off debt like it’s going out of style.
And then one day you make the last payment. What next?
Beyond credit card debt For me — and probably for a lot of people — that answer is simple: keep that debt snowball rolling. Many perpetual debtors have managed to pick up loans as well as credit cards. I’ve paid off my credit cards, but I still have a car loan, student loans and a family loan to repay.
Even though I’m still in debt, this is a milestone for me. It represents a huge emotional step, and freedom from high, variable interest rates. I’m delighted. Paying off that last credit card has loosened a lot of emotional energy. I’m making progress in areas of my life where I’d been stalled. I’m going running almost daily, cleaning my house and tending my garden. Kissing that credit card balance good-bye didn’t free up any time or money, but the weight it lifted has energized me.
“Keep the debt snowball going” seems so straightforward I almost expected this moment to pass by unnoticed, with simply a change of address to where I was sending my money each month.
In fact, it needed a little more deliberation. Which debt do I pay off now? How quickly? The standard approach is pay off the debt with the highest interest first, or the debt with the smallest balance. In my case, I put the student loans last because the interest on those is tax deductible.
Using the debt snowball spreadsheet available through this site, I’ve ordered my remaining debts in a custom priority that works for me. Applying the money I was using to pay off credit cards to extra payments on my loans will get me clear of debt in another two years. I have a confidence I never had before that I will do this. I’ll be facing a debt-free life.
Then what? This is the real “beyond debt” question. The answer is as simple and complicated as my questions about what to do next with my debt payments.
A debt-free future Roughly, following Dave Ramsey‘s roadmap for financial success, my debt-free future looks like this:
Build up an Emergency Fund. You should have the beginnings of an emergency fund already, wherever you are in your financial journey. Emergencies will always happen, and having a cushion to help you deal with them can get you off the hamster wheel of debt. Once those debts are paid, it’s time to bulk up the emergency fund. I have my starter emergency fund sitting in an ING account, but almost any high interest savings account will do. Ramsey suggests saving $1,000 before mercilessly attacking your debts. I’ve put by about $5,000 because I’m freelancing for most of my income these days. I want a bigger cushion since I have less job security. Ultimately, every household should have three to six months of living expenses in savings, available to help you weather any financial storm.
Save for Retirement. We all need retirement savings, and the sooner we begin saving for our retirements, the harder those dollars saved can work at building wealth for us. Depending on how long it’s taken you to get to this stage, you may have some catching up to do. Figuring out what to save for retirement is complex. There are plenty of good retirement calculators that will tell you how much to save given the particulars of your situation. It’s an important and confusing enough issue, though, that it’s probably also worth seeking the advice of a seasoned professional financial advisor.
Save for College. If you have kids, your next priority will be their educations. Saving for college is like saving for retirement: the sooner you do it, the more bang you’ll get from your saved bucks. Most parents won’t be able to save all the money they’ll need for their kids tuition. Try to save a third of the cost before they start, expect to pay a third out of pocket while they’re in school, and let your children pick up a third of the tab through their own work, scholarships or loans.
Save for Fun. Now comes the fun part. You’re an expert saver, and you’re financially secure. Save for that vacation you’ve always wanted to take. Save for the custom built road bike of your dreams. Save for a vacation home. This might be a long way off for those of us, like me, still swimming upstream against debt, but it’s the light at the end of the tunnel. On days when living on a tight budget feels like a burden, it’s nice to remember that way off on the horizon is not only freedom, but a whole lot of fun.
I’m speaking here of things I’ve read about but never lived. I’d love to hear from readers on this topic, since a lot of you are doing these steps, or have done them already. How has moving beyond debt changed your life? What do you do with the money that used to go to interest payments?
J.D.’s note: I gave up my coveted Monday spot in order to publish Sierra’s article today instead. Why? Because I think today’s discussion will be a natural lead-in to the post I was going to share. Tomorrow, I’ll reveal my answer to Sierra’s questions. I’ll share what I call “the rewards of frugality and thrift”, the reasons I’ve been scrimping and saving. I’ll show what I’ve been doing with my money since I became debt-free.
Cash advance apps have become a vital financial tool, offering a lifeline to those needing early access to earned wages. These apps allow users to borrow money ahead of their pay period, helping them bridge financial gaps and avoid costly overdraft fees or high-interest payday loans.
These apps function by connecting to a user’s bank account, tracking income, and spending patterns. Some require setting up direct deposit through the app. Once connected, users can request an advance on their paycheck, which typically lands in their bank account instantly or within a few business days.
Cash advance apps provide several benefits, including saving users from costly bank charges and providing budgeting tools and savings accounts. However, potential drawbacks include the possibility of falling into a cycle of debt and privacy concerns.
Despite these risks, cash advance apps, when used responsibly, can serve as a valuable financial management tool.
12 Best Cash Advance Apps
We’ve reviewed some of the best cash advance apps available, highlighting key features and who they might be best suited for.
1. Dave – Best for Small Cash Advances
Borrow up to $500 with no interest.
Dave checking account: No fees at 37K MoneyPass ATMs
Tools to help manage spending and anticipate upcoming expenses.
Automated savings: Automatically plans for future financial goals.
Bill alerts: Gives heads up on upcoming bills to prevent overdrafts.
Dave is a financial app well-suited for individuals who occasionally need a small, quick paycheck advance to tide them over until the next paycheck. It’s a reliable tool for managing finances and avoiding overdraft fees.
Dave allows users to borrow up to $500 as a cash advance to cover small expenses or to prevent an account from going negative.
Advances are provided without interest and are automatically repaid on your next payday. Funds are typically available within one to three days, though instant access is available if you choose to pay an express fee.
The Dave app also offers a checking account with no minimum balance, budgeting tools, and an automated savings feature.
The app also alerts users about upcoming bills, helping them better manage their finances and avoid unexpected charges.
2. Brigit – Best for Budgeting Features
Borrow up to $250 with no interest.
Credit builder loans to build credit
Auto-advance: Automatic cash infusion when your balance is low.
Expense forecasting: Predicts future expenses and warns against overspending.
No late fees or penalties: Offers a flexible repayment policy.
Brigit is a cash advance app that stands out due to its strong emphasis on financial tools, making it ideal for individuals who want to better manage their finances while having access to cash.
With Brigit, users can access cash advances up to $250 when their balance is low. The app features an auto-advance option, providing an automatic cash infusion when the user’s bank balance is in danger of dipping below zero.
Brigit also offers a free tool called ‘Finance Helper’ that provides a financial health snapshot and tracks your spending. The app’s algorithm also predicts future expenses and warns users if they’re at risk of overspending.
3. EarnIn – Best for Low Fees
Tip-based fee structure: Pay what you believe is fair.
Daily cash outs: Borrow up to $100 per day based on hours worked.
Balance Shield: Prevents overdrafts with automatic cash infusions.
No credit check: Your credit score isn’t affected by using the app.
Direct deposits: Pay is received directly into your checking account.
EarnIn stands out among cash advance apps for its low-cost structure, making it an ideal choice for those looking to avoid high fees.
Rather than charging a standard fee or interest, EarnIn operates on a tip-based system. This means that users can pay what they believe is fair for the service, even if that amount is zero.
This app works by allowing users to cash out up to $100 per day (up to $750 per pay period) based on the hours they’ve already worked. It’s a great tool to help avoid overdraft fees or cover unexpected expenses between paychecks.
EarnIn also integrates a Balance Shield feature that prevents overdrafts by offering a $100 cash infusion when the user’s bank account falls below a specific amount.
4. Chime – Best for Banking
SpotMe: Allows overdrafts up to $200 without overdraft fees.
Full-service banking: Includes checking and savings accounts with no monthly fees.
Early Direct Deposit: Access your paycheck up to 2 days early with direct deposit.
Automated Savings: Automatic rounding up of transactions to the nearest dollar with transfer to savings.
Secured credit card: Helps build credit score over time.
Chime is a full-service financial technology company that provides users with a banking platform.
Chime’s SpotMe feature allows eligible account holders to overdraft their accounts by up to $200 on debit card purchases without incurring an overdraft fee.
Additionally, Chime offers banking services provided by The Bancorp Bank and Stride Bank, including a no-fee checking account, an automatic savings account, and secured card offerings.
These services, combined with all of Chime’s other features, make it a well-rounded choice for individuals looking to streamline their banking experiences.
5. Current – Best for Quick Cash Advance Processing
Overdraft up to $200 with no fees.
Full-service banking: Provides checking accounts and savings tools.
Spending insights: Offers personalized breakdowns of spending habits.
Teen banking: Offers accounts for teens managed by parents.
No hidden fees: Current is upfront about all its charges.
Current is a comprehensive banking app that stands out due to its impressive speed in processing cash advances.
With Current, you can overdraft up to $200 without incurring overdraft fees. It also provides a checking account, savings tools, and personalized insights into spending patterns.
The lightning-fast processing times and user-friendly platform make Current a reliable choice for individuals who need speedy access to cash.
6. MoneyLion – Best for Comprehensive Financial Services
Instacash: Get up to $1,000 instantly with 0% APR.
Full-service banking: Offers a RoarMoney account for seamless banking.
Credit Builder Plus: Access to a secured credit card to help build credit.
Investment accounts: Provides an opportunity to grow your savings.
Credit monitoring: Keeps an eye on your credit score and provides advice.
MoneyLion sets itself apart as a financial technology company that provides a wide array of services, making it a standout for those seeking comprehensive financial tools in addition to cash advances.
MoneyLion offers a feature known as Instacash, which allows users to borrow up to $1,000 with 0% APR. The requested funds are transferred instantly to the user’s MoneyLion checking account, providing immediate financial relief.
MoneyLion also offers banking services, including a RoarMoney account and a secured card to help build credit.
Investment accounts are also part of its suite of services, making MoneyLion a one-stop solution for numerous financial needs.
7. Albert – Best for Personal Finance Management
Access up to $250 from your next paycheck.
Automated transfers to help you save money effortlessly.
Albert Geniuses: Subscribers can get personalized financial advice.
Keep track of your spending and set budget goals.
Invest in stocks and funds
Albert shines as a financial app focused on overall personal finance management while also offering a cash advance feature. This makes it an excellent choice for users who seek to enhance their financial literacy and stability.
Albert’s cash advance feature, Albert Instant, allows users to advance up to $250 from their next paycheck. This provides a handy buffer against unexpected expenses or potential overdraft fees.
Albert also offers an array of tools, including an automatic savings feature, budgeting help, and a subscription service that provides access to financial advisors for personalized advice.
Furthermore, Albert Geniuses, the app’s text-based financial advice feature, is a unique tool that helps users make more informed financial decisions.
8. Empower – Best for High Cash Advance Limits
Borrow up to $250* with no interest or late fees.
Free credit monitoring
Sets aside savings automatically based on your spending habits.
Spending tracking: Monitors spending to provide insights and alerts.
Personalized tips: Provides suggestions tailored to the user’s spending patterns.
Empower is an app that caters to those who might need larger cash advances, standing out with its high cash advance limits.
Empower offers qualified users advances up to $250* with no late fees or interest. The Cash Advance feature can be a lifesaver for individuals facing unexpected expenses or dealing with high living costs, providing a buffer until the next payday.
In addition, Empower provides a host of banking and financial services. It offers automated saving features and spending tracking to help users manage their finances more effectively.
* Eligibility requirements apply. Minimum direct deposits to an Empower checking account, among other conditions, may be required.
9. Payactiv – Best for Direct Deposit Advances
Direct deposit advances: Access up to 50% of earned wages before payday.
Financial counseling: Offers assistance to help manage finances.
Budgeting tools: Provides tools to monitor spending and set budget goals.
Discounts: Offers discounts on healthcare, retail, and commuting services.
Payactiv is a standout cash advance app for those seeking direct deposit advances, offering a unique system for accessing earned but unpaid income.
With Payactiv, users can access up to 50% of their earned income before payday, providing flexibility and a safety net for those with unpredictable expenses. This advance is automatically repaid from the user’s next paycheck, making it a seamless solution.
Payactiv also offers financial counseling, a Visa debit card, and a savings program. It also provides discounts for healthcare, retail, and commuting services.
Its comprehensive approach to financial wellness makes Payactiv a robust tool for managing personal finance.
10. Vola – Best for Students
Cash advances for students: Offers advances up to $300.
Financial learning resources: Provides educational content to enhance financial literacy.
Budgeting insights: Helps manage finances and plan for future expenses.
Overdraft prediction: Alerts users if they’re at risk of overdrawing their account.
Subscription model: Flat monthly fee provides access to all features.
Vola is a financial app specifically tailored to meet the needs of students, making it the ideal choice for students seeking cash advances.
The app understands the unique financial challenges faced by students and offers solutions to help them navigate their financial journey.
With Vola, students can borrow up to $300. It uses a subscription-based model, which also provides access to various financial tools and learning resources that are especially beneficial for students.
Vola also offers a suite of financial learning resources, money management tools, and an overdraft prediction feature.
These resources empower students to learn about personal finance management while providing a financial safety net when needed.
11. Kora – Best for User Experience
User-friendly: Simple and intuitive interface for ease of use.
Cash advances: Provides advances up to $500 to cover unexpected expenses.
Budgeting tool: Helps users manage their spending and save money.
Bill tracker: Helps users keep track of upcoming bill payments.
No hidden fees: Kora offers transparency in its fee structure.
Kora sets itself apart with its user-friendly interface and experience, making it the best choice for individuals who prioritize a seamless and intuitive user experience when it comes to cash advance apps.
With Kora, students can get up to $3,000, or as little as $25 to start building their credit history. The app’s interface is designed to be straightforward and easy to navigate, allowing users to request an advance with just a few taps.
Kora also offers financial planning tools, including a budgeting feature and a bill payment tracker. The simple, user-friendly layout makes it easy for users to manage their financial activity and plan ahead.
12. Varo – Best for No Overdraft Fees
Overdraft fee-free: Users are not charged for overdrafts.
Cash advances: Provides advances up to $250 to cover unexpected expenses.
Savings Account: Earn 5% APY on up to $5,000.
No hidden fees: Transparent about all charges and costs.
All-in-one banking: Combines a range of banking services in one app.
Varo is a standout for those who wish to avoid overdraft fees while getting cash advances. As a financial technology company that offers online banking, Varo’s cash advance app is an excellent choice for users seeking straightforward, cost-effective solutions.
With Varo, users can access a cash advance of up to $250. It’s also worth noting that Varo, unlike most cash advance apps, does not charge overdraft fees, making it a great option for those who are concerned about accruing extra charges.
Varo also offers a 5% APY savings account, allowing users to manage all their banking needs in one place.
Criteria for Evaluating Cash Advance Apps
When evaluating the best cash advance apps, several critical factors were considered to ensure a comprehensive and accurate review. These apps were assessed based on the following criteria:
Fees: The cost to use the app is a significant factor. This includes any charges for cash advances, subscription fees, late fees, or any other additional costs that could be incurred by the user.
User Experience: The design and functionality of the loan app plays a pivotal role in its effectiveness. A well-designed app should be easy to navigate, intuitive, and user-friendly. This includes the process of requesting a cash advance, accessing available features, and obtaining customer support.
Cash Advance Features: The primary function of these apps is to offer cash advances. Key considerations when assessing these features include maximum advance amounts, fees, repayment terms, and speed of delivery.
Additional Features: Many cash advance apps offer extra features, such as credit building tools, financial guidance, and more. These were evaluated based on their usefulness and how well they integrate with the cash advance function.
Customer Service: Good customer service is essential for any app. The availability, responsiveness, and helpfulness of the customer service team were considered.
Customer Reviews and Reputation: Online reviews and the overall reputation of the app provide insight into user satisfaction and potential issues.
Security: As these apps handle sensitive financial data, the security measures in place were evaluated to ensure they protect user information effectively.
By assessing each app based on these criteria, we aimed to provide a comprehensive overview to help you select the cash advance app that best suits your needs.
How to Choose the Right Cash Advance App for You
As you consider which cash advance app is right for you, it’s important to note a key difference between these apps and traditional payday lenders. Most cash advance apps do not charge interest, unlike payday lenders.
This makes cash apps typically a more cost-effective solution for short-term cash needs. Choosing the right cash advance app requires understanding your financial needs, habits, and goals. Here are a few steps to guide you:
Identify Your Needs: The first step is to define what you need from a cash advance app. Do you need a large advance, or will a small amount suffice? How quickly do you need access to the funds? Are you interested in the other features they offer?
Evaluate the Costs: Understanding the cost structure of the loan app is essential. Some apps might have high fees that can add up over time. Remember to consider both the upfront costs.
Assess the Features: Look beyond the cash advance function. Many apps offer useful features that can help you manage your finances better. Some have financial planning tools, bank accounts, and even financial education resources. If these features are important to you, they should be a significant factor in your decision.
Consider User Experience: The app should be easy to use and navigate. Read online reviews or try out the app to see if you find it user-friendly.
Check the Customer Service: Good customer service is crucial, especially when dealing with financial services. Check if the app provides timely and effective support when needed.
Think About Your Financial Future: Consider whether the app can grow with you. Some cash advance apps include features that can help you improve your financial health in the long term, such as bank accounts, credit building tools, or investment options.
By taking the time to consider these factors, you’ll be well-positioned to choose an app that fits your personal needs and helps enhance your financial situation. Remember, while cash advance apps can provide quick relief in times of need, they’re not a sustainable solution for financial difficulties. If you frequently find yourself needing to borrow money, it may be worth seeking advice from a financial advisor.
Bottom Line
Cash advance apps like Earning, Chime, and Current offer a variety of features and services to meet different financial needs. From low fees and banking features to high cash advance limits and user-friendly experiences, these apps provide convenient solutions for those in need of quick cash access.
The right app for you depends on your individual financial needs, habits, and goals. It’s crucial to consider the costs, available features, user experience, and customer service when choosing an app.
However, it’s important to remember that while these apps can provide immediate financial relief, they should be used responsibly. Cash advances are a temporary solution and not a replacement for sound financial management or long-term financial planning. Frequent reliance on money loan apps may indicate deeper financial issues that need to be addressed.
Lastly, remember to carefully read and understand all terms and conditions before using a cash advance app. Make sure you fully understand the app’s features, fees, and repayment terms can prevent unpleasant surprises down the line.
Learning how to manage your money is a huge part of “adulting,” but it’s not something most of us were taught in school. Luckily, TikTok is here to bring you up to speed. If you’ve been sleeping on TikTok like I have, let me fill you in. There’s an entire subgenre of TikTok dedicated to … [Read more…]
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MetLife could be a good choice for various life, health or other medical insurance policies. However, its options are only sold as employer-provided group insurance plans. Additionally, MetLife no longer sells auto or home insurance policies; those products are now provided by Farmers Insurance.
Extra benefits, including financial planning and grief counseling, are available
Numerous other types of medical coverage available
General customer service: 1-800-638-5433
Individual life insurance (existing customers only): 1-800-638-5000
Group universal life insurance: 1-800-523-2894
Group variable life insurance: 1-800-756-0124
Group term life insurance: 1-866-492-6983
Additional contact details by product line are available on MetLife’s website
Info
What’s new with MetLife?
In April 2021, Farmers Insurance finalized the acquisition of MetLife’s home and auto insurance divisions. Going forward, MetLife Insurance will focus on life, health and pet insurance, as well as financial products like Health Savings Accounts (HSAs) and employer-sponsored retirement plans.
MetLife life insurance
MetLife life insurance could be a good choice if the company provides your employer’s group life or health offerings. MetLife got its start in 1863 and has grown tremendously in the time since. Although Farmers Insurance purchased MetLife’s auto and home business, Metropolitan Life Insurance Company continues to operate independently. The company provides life insurance through employer-sponsored plans and groups.
However, the life insurance coverage types are relatively limited. Additionally, MetLife uses numerous underwriting companies, so your coverage may not actually come directly from MetLife. Our MetLife life insurance review breaks down the company’s offerings, to help you choose the right type of life insurance for your needs:
Term: MetLife offers basic, supplemental and dependent term life coverage. Some types of coverage are employer-paid, while others are paid by the employee. Term life insurance may be especially popular with young families or for those who only need coverage for a short period of time, usually 10, 20 or 30 years.
Permanent: MetLife offers two types of permanent life insurance coverage: group universal and group variable universal life. There is no whole life insurance. Permanent policies may be a better choice for older adults who need the coverage to last the rest of their lifetimes.
Group universal: Universal life insurance offers flexible options, allowing you to adjust your death benefit and premium as your needs change. MetLife’s universal life insurance offering is only available as a group plan.
Group variable universal: Variable universal life is similar to a standard universal life policy, but it includes an investment component that makes it a more complex financial product. To learn more about MetLife’s group variable universal life policy, contact the company directly.
MetLife life insurance endorsements
If you’re searching for the best life insurance, you may want to consider adding endorsements to your policy to more closely align your coverage with your needs. Unfortunately, MetLife does not list any information about riders on its website. This may be because MetLife focuses on employer-sponsored plans; different endorsement options might be available based on the agreement with each employer. To learn about life insurance riders from MetLife, contact the company directly or discuss your options with your employer (if MetLife provides your group life insurance options).
Keep in mind that riders will likely increase the cost of your life insurance, so you may not get the cheapest life insurance policy if you add them. However, the added protection may be well worth the extra cost, depending on your situation.
MetLife life tools and benefits
In addition to life insurance, MetLife also offers additional services to its members. Beneficiaries may be able to take advantage of the company’s grief counseling and checklists to help foster a sense of stability when a loved one passes. The company also offers funeral discounts, funeral planning services, will preparation services and transition planning.
MetLife customer satisfaction
If you’re shopping around and comparing life insurance quotes, customer satisfaction is an important area to consider. Life insurance rates may not vary between companies as much as home or auto insurance rates do — rates mostly depend on your age, health, the policy type you choose and how much life insurance you need — so looking at other aspects of each company can help you find the right option.
J.D. Power is a consumer data analytics company that puts out several service-oriented studies each year. MetLife has an above-average score in the 2022 J.D. Power U.S. Individual Life Insurance Study. Remember that MetLife no longer sells individual life insurance policies, so this score reflects its service to the customers who already own individual policies. However, it could still be a helpful metric, knowing that individual life customers seem to be generally satisfied with the service experience.
The National Association of Insurance Commissioner (NAIC) does give MetLife a complaint index for group life policies, which may be more helpful. A complaint index of 1.00 represents a normal or average number of complaints. MetLife’s group life insurance product has a score of 0.61. This means that the NAIC received fewer complaints about MetLife than average, which indicates a high level of service.
Finally, a company’s financial strength can be a useful tool, as it showcases a company’s historical ability to pay claims. MetLife has several different AM Best financial strength ratings, based on the underwriting companies it uses. Two of its companies, Metropolitan Life Insurance Company and Metropolitan Tower Life Insurance Company, have A+ (Superior) AM Best financial strength ratings. American Life Insurance Company and MetLife Insurance K.K. (which operates in Japan) are not rated by AM Best.
How to file a claim with MetLife
Filing a life insurance claim is an emotional endeavor, but MetLife seeks to make it as seamless as possible. If you are the beneficiary of a MetLife life insurance policy and need to file a claim, you can:
If you call for help, you’ll likely still have to fill out a claim form, but you may be guided by a licensed agent to ensure you choose the correct one. You may also need to provide additional documentation, such as a death certificate.
MetLife availability
MetLife is available in all 50 states and Washington, D.C. Product offerings may vary by state and MetLife’s agreement with your employer.
Other MetLife perks worth considering
MetLife’s product offerings are more limited as it no longer sells personal lines insurance coverage, but you may be interested in a few of its additional offerings:
Dental insurance: MetLife offers a number of dental insurance plans, including PPO plans, HMO/managed care plans and plans for veterans.
Vision insurance: MetLife’s various vision insurance options may help you save on exams, glasses and contacts. Some plans even offer discounts on LASIK eye surgery.
Pet insurance: Pet insurance is like healthcare coverage for your animal. This is one of the few plans that MetLife sells both individually and through employers.
Retirement solutions: In addition to insurance products, you might be able to use MetLife for your retirement plan too, if your employer offers this perk.
Keep in mind that MetLife doesn’t sell individual policies any longer. If your employer offers group life insurance through MetLife, you’ll need to work with your employer to gain access to these products.
MetLife corporate sustainability
MetLife could be a great option for consumers who are looking for companies with strong social responsibility programs. Since 1976, the MetLife Foundation has donated nearly $1 billion to help strengthen communities. The company is also focused on sustainability and has won numerous awards for its sustainability program. Finally, MetLife is focused heavily on diversity, equity and inclusion (DEI), outlining priorities to help foster a more diverse environment.
Not sure if MetLife is right for you?
Finding the right life insurance company for your needs involves doing some research to see which carriers closely align with your situation. One of the first steps is figuring out how much coverage you need, which you can do with the help of a licensed agent or even a life insurance calculator. Next, take a look at your needs and decide what policy type is best for you. Then you can start to look at carriers to see if they offer what you need. If you’re not sure if MetLife is right for you, these companies could be good options:
MetLife vs. Nationwide
If you’re looking for universal life coverage, Nationwide could be a good fit. The carrier offers high coverage limits and highly customizable policies that could fit a wide range of needs. Nationwide also offers auto and home insurance, along with numerous other insurance and financial products, and its life insurance products are available to individuals.
Learn more: Nationwide Insurance review
MetLife vs. MassMutual
If you need whole life insurance, which MetLife does not offer, MassMutual could be worth a look. The company has the highest AM Best financial strength rating possible and a long list of whole life insurance riders for personalization. MassMutual also offers universal and variable universal life, if you’re looking for those options without having to be part of a group plan like you would with MetLife.
Learn more: MassMutual Life Insurance review
MetLife vs. State Farm
The insurance behemoth could be a great choice for those seeking the best term life insurance. Additionally, the availability of local offices may be appealing to those who like to handle their insurance needs in person. State Farm offers numerous other insurance products and banking products, too, so it could be a good choice if you want to keep all your financial products in one place.
Learn more: State Farm Insurance review
Is MetLife a good insurance company?
MetLife might be a good life insurance company if your employer offers coverage for you. The company has generally high customer satisfaction reviews and offers helpful tools to beneficiaries, like funeral planning services and grief counseling. However, MetLife no longer sells individual policies like many of the other life insurance carriers we’ve reviewed, so it won’t be an option unless you can purchase coverage through your employer.
Hello! Today, I have a great debt payoff story from Heather O’Donnell of HappyHumbleHome.com. Enjoy!
These days, I’m a frugal living blogger at Happy Humble Home and I provide money saving advice and encouragement to others.
But there was a point in my life, not that long ago, when I thought I would be in debt forever.
When my husband and I got married in August of 2015, we had $105,000 of debt. Since then, we have worked very hard towards our goal becoming debt free and we have crushed $95,000 of our debt.
Along the way, we’ve used 2 different debt payoff strategies and we’ve learned 3 essential habits that have helped us be successful along the way. In this post, I’m going to give you an inside look at how I overcame my giant mountain of debt because I know without a doubt that if I can do this, you absolutely can too.
More debt payoff stories:
I brought most of the debt into my marriage
My husband was debt-free except for his car payment. I had a giant student loan and a car payment of my own. Here’s a breakdown of exactly what our debt looked like:
Student Loan – $68,000
My Car Loan – $20,000
His Car Loan – $17,000
If you’re wondering about those numbers, let me give you a quick backstory.
My giant student loan was consolidated from my undergraduate and masters degrees. I went to school to be a elementary school teacher and was working as a kindergarten teacher in an inner city when we got married. Obviously, this was not a very high paying career choice.
It was just pure bad luck that my husband and I had to buy cars at the same time.
A few months before our wedding, his old car was starting to have problems and it would have been expensive to fix. We decided together that instead of fixing his old car, it would make more sense to trade it in and get a new one. So, he did.
We expected the little Honda Civic that I was driving at the time to last us at least another 5 years and we didn’t think his one car payment would be that bad.
But just a few weeks after my husband bought his new car, my car was totaled in a hit and run accident. Thankfully, I wasn’t injured. On the other hand, my poor little car was destroyed.
Clearly, I was going to need a new one. And of course, I could have bought something used and affordable. But instead I did a rushed month of research and decided to invest in a new car that would last us 10 years, barring another horrible accident.
So, that’s how we ended up with 2 car payments at the same time on top of my student loan.
We paid for our wedding in full with cash that we had saved up during our 18 month engagement. But this also meant that we were only paying the minimums on our debt during this time.
It was right after we were married that we decided to get serious about paying off our debt.
Emotionally, it was hard to be the one to bringing so much debt into my marriage. I felt really guilty about it and it took several long conversations with my husband before I was ready to tackle or debt together.
We started by learning everything we could about debt payoff strategies.
We decided that because we were already highly motivated, we should use the debt avalanche and focus on paying off my student loan first since it had a much higher interest rate.
For the next 18 months we devoted every spare dollar that we could to paying my student loan. We paid off $38,000 of the $68,000 total during that time.
The debt avalanche was serving us well. We’d paid off more than half of our biggest and highest interest rate debt. But our life situation was changing. I was pregnant and planning to leave my job to stay home with our baby. We knew this would drastically decrease our income and affect our debt payoff.
So, we decided to reevaluate our strategy.
After looking at our debts, we decided the best thing for us would be to eliminate our highest monthly payment. That would free up more money each month and would make life easier when I wasn’t working.
My husband’s car loan was our smallest debt, with our smallest interest rate, but it was our highest monthly payment at $505.
We set our sights on that small car loan and started devoting all the extra money that had been going to my student loan each month to the car loan instead.
We had his car paid off in 6 months.
This put a lot more breathing room in our monthly budget.
Then, we turned our attention to my car payment. The minimum monthly payment for my car was only $297, but it was a much smaller total amount than my student loan and we wanted to remove that monthly payment too.
We put everything we could toward paying off my car, including our 2017 tax return, and we had it paid off 7 months later.
By this time, our son was here and I had left my job. Our income was much less than when we were both working and our expenses were a little higher since we had another person in our family.
So, our debt payoff slowed.
There were several months that we could only pay the minimum monthly payment towards the student loan.
Whenever we had a little extra, we would pay more.
Even though our progress had slowed, our motivation was still high. We had built so much momentum when we were paying off our debts quickly and that carried us through those harder months.
Since I left my job in August of 2017, we have paid off $21,000 of my student loan on one income.
So at the time that I’m writing this we still have about $10,000 of debt left. I have this new, life changing ability to see the light at the end of the tunnel. I know we will be debt-free soon, and once we are, we’re never going back.
I want to share with you 3 essential habits that we used to pay off our $95,000 of debt so far.
These strategies worked for me even as someone who was horrible with money in the beginning. And they’ve kept me motivated through the hard times when I felt like giving up. I know these strategies can work for you too.
1. Monthly Debt Check-In
Every month during the last weekend of the month, my husband and I spend an hour planning out our budget for the month ahead and checking in on our debt payoff progress.
We talk about how much debt we’ve paid off and how much further we have left to go.
Sometimes we play with an online debt calculator on Unbury.us. The calculator tells us when our debt will be paid off based on how much extra we can pay each month. For example, if we pay an extra $600 a month, we’ll have our debt paid off my February 2020. It just gives us a rough idea of how close we’re getting.
Talking about it is powerful gets us excited and motivates us to continue.
2. Cutting Expenses for Extra Debt Payments
We did everything we could think of to lowering our expenses so we would have more money to devote to paying off our debts. This wasn’t fun to think about at first, but it was fun to see all that extra money going toward paying off debt.
Here are some of the expenses we cut to free up money for extra debt payments.
Food
We completely stopped going out to eat at restaurants. During the 3.5 years that we’ve been married and working on our debt, my husband and I have only been in a restaurant on our anniversary or birthdays.
We also stopped getting take-out food on the busy (or lazy) nights that we didn’t feel like cooking. Instead we had some supplies on hand for super simples meals that we both liked and that would be easy to prepare when we didn’t want to cook. These were mostly things like tuna, cartons of soup, or frozen chicken fried rice.
I made an effort to meal plan and once I learned a system that worked for me, I worked on stretching the same ingredients out for several different dinners in a week. For example, shredded beef would work for beef and broccoli, beef tacos, and stew.
Then, I started getting serious about saving money on groceries. I started looking for sales, comparing prices, using some coupons, and shopping with a grocery budget. I was able to lower our grocery costs by $40 a week with just a little bit of work and thinking ahead.
Household Costs
After we got our food costs under control, we focused our attention on our household costs.
We seriously cut down on our electric bill just by unplugging things and intentionally turning off what we weren’t using.
We negotiated our cell phone bill and saved $15 a month.
We made an effort to use a little less of everything – less paper towels, less detergent, less shampoo.
We’ve even tried to do some simple home repairs ourselves without calling (and paying) a professional. My husband was able to fix the ice maker in our freezer, replace our doorbell, and even do a simple repair on our toilet.
It was easier than I thought it would be.
I expected cutting our expenses to be a grueling process but it was so much easier than I ever expected. We would just try something, and if it worked we’d get really excited about the money we saved.
My success with cutting our expenses is one of the main reasons I wanted to start my blog, Happy Humble Home. I was excited to share simple, actionable ideas that other people could use in their own lives, with their own families, to save money.
3. Keeping the Future Front of Mind
The biggest change that helped me while paying off debt was actually a mindset shift.
I stopped thinking about what I wanted right now, and instead started focusing on what I want in the long run.
I knew that I didn’t want to still be paying off my student loan when my kids were in college. And during the times that I was struggling, that’s what I would remind myself.
And my husband and I are always talking about how much more money we will have once we don’t have to make any debt payments. We’ll actually be able to save money for things that we really want, like remodeling our bathrooms.
This isn’t an easy mindset shift to make.
There were so many times that I wanted the instant gratification that came from take-out food or going out with friends or buying a cute new outfit.
I had to keep reminding myself that 5 years from now I wouldn’t remember that meal, or event, or outfit. But if I made the right choices, in 5 years I could be debt free. And that would have a profound impact on my family forever.
With practice, those hard choices became easier to make.
And now that I’m so close to being debt-free, it’s very easy to turn down temptation.
$93,000 in 3.5 Years
It’s a little scary to put all my real life numbers out there into the world. But It’s pretty amazing to take a step back and think about how far I’ve come. And It’s even more amazing to think about how close I am to the finish line.
My husband and I expect to be 100% debt free by the end of 2019. And once we are, we are never going back. Also, there will be a party.
In the meantime, I’m going to keep sharing my money saving tips and debt insights over on my blog, Happy Humble Home. I’m doing my best to empower everyone I can reach to fix their financial situation, just like I have. I’d be honored to be a part of your financial journey. You can join me here to get access to all of my best money saving tips and tools (including a printable debt payoff tracker!)
If your debt feels overwhelming like mine once did, I want you to know that this is not impossible. With a little intentionality, some smart choices, and healthy money habits you can pay off your debt and change your future. I know that if I can do this, you can too.
Do you have debt? What are you doing to pay off your debt?
In the past decade, we’ve seen a major transformation in the banking sector. As the world continues to digitize, the financial landscape has shifted in response, giving birth to a plethora of online banking services. One such innovation that has garnered widespread adoption is online checking accounts.
As a key financial tool, a checking account serves as a lifeline for day-to-day transactions, paying bills, and generally managing one’s finances. But with online checking accounts, convenience, accessibility, and often better rates and lower fees have made them an attractive alternative to traditional banks.
10 Best Online Checking Accounts
These best online checking accounts offer a range of features, from high annual percentage yield (APY) to robust mobile apps, all designed to meet the varying financial needs of users. Here are our top 10 picks for 2023.
1. Chime Checking Account
Chime, a financial technology company that offers online banking services, is revolutionizing the banking industry with its online checking account that pairs both convenience and value into a single offering.
With Chime, you can access banking services without the constraints of physical branches and enjoy a plethora of services, from direct deposits to earning savings interest and more.
It’s essential to note that Chime isn’t a bank but rather a financial technology company providing banking services through Bancorp Bank, N.A., and Stride Bank, N.A., Members FDIC.
Key Features
No monthly maintenance fees or minimum balance: The Chime Checking Account comes with no monthly maintenance fees or minimum balance requirements, making it a cost-effective option for those looking to maximize their financial resources.
Early direct deposit: With Chime, you can receive your direct deposits up to two days early, providing you with quicker access to your funds compared to many traditional banks.
SpotMe® feature: This innovative feature allows you to overdraw your account up to $200 on debit card purchases without a fee, provided that you have $200 or more in qualifying direct deposits each month. The SpotMe® limit can be increased based on account history, direct deposit amounts and frequency, spending activity, and other factors.
Automated savings features: Chime allows you to save effortlessly with its Round Ups feature. Each time you use your Chime Visa® Debit Card, the transaction is rounded up to the nearest dollar, and the difference is transferred to your savings account. The Save When I Get Paid feature lets you set up a recurring transfer of 10% of your direct deposit paycheck of $500 or more from your checking account to your savings account each time you get paid.
Extensive ATM network: With Chime, you get access to over 60,000+ fee-free ATMs nationwide, giving you the flexibility to withdraw cash without worrying about ATM fees.
The Chime Checking Account is a stellar example of how online banks are providing value-packed offerings that rival traditional banks.
The account is particularly beneficial for those who receive direct deposits and don’t need to deposit cash often.
2. Axos Bank Rewards Checking
Axos Bank is an online-based bank that’s shaking up the banking industry with its online Rewards Checking account, a unique blend of convenience and value.
Axos allows you to utilize banking services without the constraints of physical branches and offers numerous benefits, from earning high APY to ATM fee reimbursements and more.
It’s important to note that Axos Bank is a completely online bank without in-person customer service options.
Key Features
High APY: The Axos Bank Rewards Checking account can earn an APY of up to 3.30% on balances up to $50,000, given certain conditions are met. You can earn this high APY by fulfilling certain requirements. These include maintaining a monthly direct deposit totaling at least $1,500 or making qualifying debit card purchases. Additionally, maintaining certain balances in Axos investment accounts, or making a monthly Axos consumer loan payment using Rewards Checking.
No Overdraft Fees: Rewards Checking doesn’t charge overdraft or nonsufficient funds fees. Transactions are simply declined unless you enroll in one of the bank’s overdraft programs, which include the option to set up free automatic transfers from a savings account to your checking account if your balance goes negative.
ATM Fee Reimbursement: Axos Bank offers unlimited ATM fee reimbursements, which gives you the flexibility to withdraw cash from any ATM without worrying about the fees.
Cash Deposits: Axos Bank uses a third-party service, Green Dot, to let customers add cash to their accounts or reload debit cards at retailers such as 7-Eleven and CVS Pharmacy. However, it costs up to $4.95 per deposit. You can also make deposits at some of Axos Bank’s 91,000 in-network ATMs.
Remote Customer Service Options: Axos Bank offers a variety of remote customer service options, including a 24/7 phone line, automated online chat, secure online messaging, and Twitter support.
The Axos Bank Rewards Checking account is a prime example of how online banks are delivering offerings that compete with traditional banks.
The account is particularly beneficial for those who can meet the requirements to earn the high APY and are comfortable with online-only customer service.
3. Current Account
Current, a pioneering financial technology company, delivers cutting-edge banking solutions with its Current Account.
While not a traditional bank, Current collaborates with Choice Financial Group to provide banking services, assuring member FDIC protections up to $250,000.
Key Features
Up to 2-day early direct deposit: With Current, customers can receive their paycheck up to two days earlier with direct deposit, offering superior control over their finances.
Fee-free overdraft protection: Current Account users can take advantage of fee-free overdraft protection, a feature that can safeguard against unexpected charges.
Points earned on debit card swipes for cash back: The Current Account provides added incentives for daily spending, as customers can earn points on debit card swipes that can be redeemed for cash back.
Access to over 40,000 fee-free ATMs: Ensuring easy access to cash nationwide, Current provides its users with over 40,000 fee-free ATMs.
Mobile check deposit: The innovative mobile check deposit feature from Current allows for effortless banking directly from a smartphone.
Current doesn’t just stop at basic features, it goes beyond by offering a range of options that simplify and amplify the banking experience.
Free from minimum balance fees, overdraft fees, bank transfer fees, and in-network ATM withdrawal fees, Current is committed to delivering an uncomplicated and seamless banking experience.
The “Current Pay” feature further enhances the user experience by facilitating instant money transfers among friends and family, simplifying payments or reimbursements.
4. SoFi Checking and Savings Account
SoFi, a modern financial platform offering a suite of financial services, is setting new standards in the world of banking with its online bank account that combines remarkable earning potential and considerable convenience.
Remember that SoFi isn’t a traditional bank but a financial technology company that provides banking services in association with a network of participating banks, all of which are FDIC insured.
Key Features
No account or overdraft fees and no minimum balance: The SoFi Online Bank Account is cost-friendly, with no account fees, overdraft fees, or minimum balance requirements. This makes it an excellent choice for those who want to keep their banking expenses to a minimum.
Potential 2-day early direct deposit: If you set up a direct deposit, SoFi provides the possibility of getting your paycheck up to two days earlier, offering faster access to your money compared to traditional banking establishments.
High-interest earnings: As a SoFi member, you have the opportunity to earn up to 4.20% APY on your savings and Vaults balances, and 1.20% APY on your checking balances. This earning rate is significantly higher than the national average, making your money work harder for you.
No-fee overdraft coverage: SoFi introduces a user-friendly feature covering accidental overspending up to $50 with no fees, given that you have qualifying direct deposits.
Cash back at local establishments: SoFi users can enjoy up to 15% cash back at local establishments when they pay with their SoFi debit card, combining savings with everyday spending.
Increased FDIC insurance: SoFi deposits are insured up to $2M, a feature that provides extra peace of mind when it comes to the security of your funds.
The SoFi Checking and Savings Account is an excellent example of how FinTech firms are providing robust banking solutions that rival and even surpass traditional banks.
The account is particularly attractive to those who frequently use direct deposits and prefer banking digitally, offering superior returns on their balances and protection from various fees.
5. Ally Bank Interest Checking Account
Ally Bank, renowned for its customer-centric digital banking services, provides a comprehensive offering through its Ally Bank Interest Checking Account.
While being an entirely online institution, Ally Bank ensures FDIC insurances up to the maximum allowed by law, bolstering financial security for its customers.
Key Features
Fee-free banking: Ally Bank champions transparency and affordability with no monthly maintenance or overdraft fees, supporting customers in maximizing their financial resources.
Access to 43,000+ no-fee Allpoint® ATMs: With a network of over 43,000 no-fee Allpoint® ATMs, customers enjoy widespread cash access. Plus, Ally reimburses up to $10 per statement cycle for fees charged at other ATMs nationwide.
Spending buckets: This innovative feature helps customers manage their money effectively by setting funds aside for ongoing expenses such as rent and groceries, much like digital envelopes. This encourages better spending habits and gives a clearer picture of personal finances.
Up to 2-day early direct deposit: Offering greater financial flexibility, Ally Bank allows customers to receive their paycheck up to two days sooner with early direct deposit.
Overdraft protection: With the Overdraft Transfer Service and CoverDraft℠ service, Ally provides a dual protection mechanism against accidental overspending, adding to its customer-friendly features.
Manage your debit card: Within Ally’s mobile app, customers can lock their card, set notifications, and limit spending, offering enhanced control over their banking.
Remote check deposit: With Ally eCheck DepositSM, depositing checks is as simple as snapping a photo with your smartphone.
Send and receive money: Through Zelle®, customers can send and receive money quickly, securely, and without the need for an extra app.
The Ally Bank Interest Checking Account provides a robust banking experience, packed with unique features that suit the needs of today’s digitally savvy customers.
It combines the convenience of online banking with the benefits of a comprehensive checking account, delivering unparalleled value.
Furthermore, Ally Bank’s commitment to keeping fees minimal, coupled with its transparent approach, ensures customers can bank confidently and efficiently.
6. Consumers Credit Union Serious Interest Checking
Consumers Credit Union, committed to enhancing its members’ financial prosperity, offers an appealing solution with its Serious Interest Checking®, a high yield checking account.
Despite being a credit union, it combines the benefits of a checking account with an attractive interest rate, making banking rewarding for its members.
Key Features
High-yield earnings: This checking account stands out by offering a whopping 4.00% APY on balances up to $15,000. To qualify for this interest rate, account holders must have 12 posted debit card transactions per month, maintain a $1,000 average daily balance, and establish a minimum recurring monthly direct deposit of $1,000, along with eStatements.
Instant-issue debit card: With the Serious Interest Checking® account, members receive an instant-issue debit card, providing immediate access to their funds.
No debit card usage fees or check deposit fees: In alignment with its member-friendly approach, Consumers Credit Union does not charge fees for debit card usage or for each check deposited.
24-hour online banking and mobile banking app: Offering a seamless digital banking experience, account holders have 24-hour access to online banking and a convenient mobile banking app.
Free online check copies and unlimited check writing: As part of its comprehensive offering, Consumers Credit Union provides free online check copies and allows unlimited check writing, adding to its array of cost-effective features.
Access to 30,000+ fee-free ATMs nationwide: Customers can withdraw cash from over 30,000 fee-free ATMs nationwide, ensuring easy access to their funds.
Competitive interest rates and custom alerts: Apart from competitive interest rates, the account also offers custom alerts for balance and activity, promoting active financial management.
Free eStatements and mobile check deposit: This high yield checking account also features free eStatements and mobile check deposit, further simplifying the banking experience for customers.
The Consumers Credit Union Serious Interest Checking® account blends the convenience of a checking account with the high-yield earnings usually associated with a savings account.
Its feature-rich, value-packed offering makes it a compelling choice for those seeking to elevate their banking experience and maximize their earnings.
7. Quontic High Interest Checking
Quontic Bank, committed to maximizing customer earnings and supporting financial inclusivity, offers a high interest checking account that combines convenience, high-yield potential, and an innovative digital banking experience.
Highly rated by multiple platforms, this account is perfect for those seeking to earn more from their deposits.
Key Features
Earn up to 1.10% APY: The Quontic High Interest Checking account allows you to earn up to 1.10% APY on all balance tiers. To qualify, make at least 10 qualifying debit card point of sale transactions of $10 or more per statement cycle. Failure to meet these requirements results in a 0.01% interest and APY. A minimum opening deposit of $100 is required.
Quontic Pay Ring: In a bid to revolutionize banking, Quontic offers a payment wearable called the Quontic Pay Ring. This innovative feature allows you to make payments effortlessly without needing to carry your debit card.
Access to 90,000+ ATMs nationwide: Enjoy surcharge-free withdrawals at any participating AllPoint® Network ATMs, MoneyPass® Network ATMs, SUM® program ATMs, or Citibank® ATMs located in various retailers across the nation.
Fully mobile & online banking: Quontic offers a dynamic online banking platform and mobile app equipped with features like remote check deposit, bill pay, account transfers, and receipt tracking, providing a seamless banking experience on your terms.
Wide range of pay options: With compatibility for Apple Pay, Google Pay, Samsung Pay, and Zelle, Quontic ensures you have plenty of options to facilitate your payments.
No monthly or overdraft fees: Quontic is committed to transparency and affordability, promising no hidden monthly or overdraft fees.
Member FDIC and advanced security monitoring: As a FDIC-insured institution, Quontic offers robust security features including the ability to lock and unlock your debit card online and protection against unauthorized transactions.
Banking with a purpose: Quontic stands apart by being a Community Development Financial Institution (CDFI), striving to bring the dream of homeownership to low-income families, immigrants, people of color, small business owners, and others who are unable to obtain mortgage financing through traditional lenders.
The Quontic High Interest Checking account combines innovative features, high yield potential, and an inclusive mission, making it a compelling choice for socially conscious individuals seeking to earn more on their deposits.
8. Alliant Credit Union High-Rate Checking
Simplicity and high yields are the cornerstone of Alliant Credit Union’s High-Rate Checking account, a solution tailored to meet the needs of modern-day banking customers, whether they’re on-the-go or prefer traditional banking methods.
Recognized by multiple platforms for its service excellence, this account is designed for customers who desire a seamless and rewarding banking experience.
Key Features
No monthly fee or minimum balance requirement: Alliant Credit Union ensures hassle-free banking with no monthly service fee or monthly minimum balance requirement.
No overdraft fees: Mistakes happen, and Alliant understands this by not charging its customers overdraft fees. However, some standard fees such as stop payment do apply.
Access to 80,000+ fee-free ATMs: Get access to more than 80,000 fee-free ATMs, eliminating the need for ATM hunting. Plus, enjoy up to $20/month in ATM fee rebates for out-of-network ATMs.
Contactless payments and digital wallet compatibility: Pay quickly and securely with your free Visa® contactless debit card or through digital wallets such as Apple Pay™, Samsung Pay™, and Google Pay™, and other payment apps like PayPal, Venmo, and Cash App.
Mobile banking and remote deposit: Manage your finances anywhere, anytime with the Alliant Mobile Banking app, which also allows you to deposit checks remotely.
Free overdraft protection and courtesy pay: Avoid accidental overdrafts with free overdraft protection, and opt-in for Courtesy Pay to cover checks, electronic payments, and transfers beyond your overdraft protection.
Account alerts and card management: Receive alerts for large transactions or unusual account activity, and manage your debit card on-the-go with options to activate or replace a lost/stolen card via Alliant online or mobile banking.
Federally insured and $0 liability on fraudulent charges: Rest assured knowing your deposits are federally insured up to $250,000 by the NCUA, and enjoy Visa’s $0 fraud liability feature, offering protection against unauthorized charges.
To earn interest on your checking account, simply opt for free eStatements and ensure at least one monthly electronic deposit to your Alliant High-Rate Checking account.
The Alliant Credit Union High-Rate Checking account offers simplicity, flexibility, and competitive interest rates, making it a smart choice for your everyday banking needs.
9. Schwab Bank Investor Checking
Charles Schwab brings its robust reputation in the investment sector to banking with its Schwab Bank Investor Checking account, designed for those seeking seamless integration of banking and investing.
This account ensures that your financial management is hassle-free and efficient, encouraging more financial freedom and effective investment.
Key Features
No fees or minimums: Experience the freedom of no maintenance fees or account minimums. This account enables you to focus more on your finances without the worry of hidden charges or minimum balance requirements.
Competitive APY: Enjoy a competitive 0.45% APY on your checking account balance, providing an added benefit of earning interest on your deposited funds.
Unlimited ATM fee rebates worldwide: Travel or live abroad without worrying about ATM fees. Charles Schwab offers unlimited ATM fee rebates worldwide, making accessing your money easier and more affordable.
No foreign transaction fees: Schwab’s account is designed with the international traveler in mind, eliminating foreign transaction fees and making it more convenient and cost-effective for you to use your debit card abroad.
Security and peace of mind: Feel secure with features like card lock/unlock, bank and transaction alerts, and travel notices. These features, combined with the Schwab Security Guarantee, ensure maximum security and control over your financial transactions.
Robust mobile app: Manage all your Schwab banking needs from one place with a feature-rich mobile app. Make deposits, transfer money, and more, with just a few taps on your smartphone.
Mobile payments: Enjoy a secure, convenient, and easy way to pay with your mobile wallet or contactless debit card. This allows for quick and hassle-free transactions, whether you’re shopping online or in-store.
The Schwab Bank Investor Checking account integrates banking and investing, offering convenience, ease, and attractive benefits for the modern user.
Whether you’re an avid traveler or looking for a no-fee, high-yield checking account that also offers excellent digital banking capabilities, this account could be a great fit.
10. Navy Federal Credit Union Free EveryDay Checking
Navy Federal Credit Union’s Free EveryDay Checking is an easy-to-use, accessible banking solution for everyone.
It is ideally suited for those seeking a basic, straightforward account for everyday banking needs, particularly individuals with lower account balances.
Key Features
No monthly service fee or minimums: This account demands no monthly service fees, no opening deposit requirement, and no minimum balance requirement, offering a flexible, low-maintenance banking experience for all users.
Interest-earning: With a 0.01% APY and Dividend Rate, your balance isn’t just sitting—it’s working for you, accumulating dividends over time.
Free debit card with zero liability protection: Your account includes a Navy Federal Debit Card, which is accepted at millions of locations worldwide and comes with zero liability protection for added security.
Digital banking: Navy Federal’s account offers a wide range of digital banking capabilities. This includes Mobile Deposits and Bill Pay, enabling you to manage your finances on the go, securely, and conveniently.
Checking protection options: Protect your checking account from overdrafts and denied transactions with Navy Federal’s Checking Protection Options, ensuring peace of mind and financial stability.
Additional benefits: The Free EveryDay Checking Account also offers free traditional name-only checks, an easy-to-use online ordering system, and automatic notifications to track account activity.
Highly rated: With a 4.7 out of 5 rating based on 142 reviews, Navy Federal’s checking account is highly rated by its customers for its user-friendly features and excellent service.
In addition to these standard features, Navy Federal Credit Union offers comprehensive digital banking tools like mobile banking apps, bill pay services, and convenient transfer and deposit options.
Plus, all members enjoy access to 24/7 customer service and more than 350 branches worldwide. The Free EveryDay Checking Account is a simple, straightforward, and user-friendly option that makes everyday banking a breeze.
What is an online checking account?
An online checking account operates much like the checking accounts you’re accustomed to at traditional brick and mortar banks, with the primary difference being that it’s mostly or entirely digital. They are provided by online banks, credit unions, and even financial technology companies that are not banks themselves.
Online checking accounts have surged in popularity for a variety of reasons. Their major draw is the convenience and flexibility they offer. With these accounts, you can deposit cash, pay bills, transfer money, make debit card purchases, and even deposit checks digitally using the bank’s mobile app. This means that all your transactions can be completed without visiting a physical branch location.
Additionally, online only banks typically offer higher annual percentage yields (APY) than traditional banks, meaning your money grows faster. The absence of physical branches translates into reduced overhead costs for these financial institutions, enabling them to pass on the savings to customers in the form of higher interest rates and lower fees. These accounts also often have lower minimum balance requirements and monthly maintenance fees compared to their brick-and-mortar counterparts.
Lastly, many online banks are insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA), providing the same level of safety for your deposits as traditional banks.
Criteria for Evaluation
Selecting the best online checking accounts was not a task taken lightly. We’ve considered a variety of factors in our analysis to ensure that our picks provide a mix of the most advantageous features for diverse financial needs. Here are the key criteria we used in our evaluation:
Annual percentage yield (APY): We considered the APY offered on the checking accounts. Higher APY means your money grows faster, making it a key feature to look for in an account.
Monthly fees and other costs: Monthly maintenance fees can eat into your savings. We favored accounts with low or no monthly fees. We also looked at other potential costs like overdraft fees, out of network ATM fees, and foreign transaction fees.
ATM access: Easy and wide-ranging access to ATMs is crucial. We considered online banks with large ATM networks and those that offer ATM fee reimbursements.
Customer service: Exceptional customer service is important, especially for an online only bank where in-person assistance is not an option. We assessed the quality of customer service provided by each bank.
Mobile app experience: A great mobile app can make managing your money a breeze. We evaluated the usability, functionality, and reliability of each bank’s mobile app.
Additional features: Other features like early direct deposit, mobile check deposits, cash back rewards, and savings tools can add value to online checking accounts. We considered these additional features in our review.
How to Choose the Right Online Checking Account for You
Choosing the right online checking account is crucial. It can simplify your financial management, enhance your monetary gains, and align with your lifestyle needs. Below are key factors to consider in making an informed decision:
Financial Habits: Evaluate your typical financial behaviors. Do you frequently use ATMs, and will you need access to an extensive, fee-free ATM network? If you regularly maintain a high balance in your checking account, an interest-earning account could be beneficial. Conversely, if you tend to keep a low balance, consider an account with no minimum balance requirement to avoid potential fees.
Goals: What are your financial goals? If you’re aiming to save, consider an account that earns interest. If you’re focused on investing, select an institution that offers seamless integration between checking and investment accounts.
Lifestyle: Assess your lifestyle and daily needs. Do you travel often and need an account that doesn’t charge foreign transaction fees? If you prefer digital banking, look for accounts with robust online platforms and mobile apps that allow for easy money management on the go.
Fees: Examine the fee structure carefully. Consider potential monthly maintenance fees, overdraft fees, and ATM fees. Look for accounts offering fee waivers or reimbursements.
Customer Service: Exceptional customer service is crucial, particularly for an online bank. Look for 24/7 customer support, availability of live chat, and timely response to queries.
Security: Ensure that the bank employs stringent security measures to protect your account from fraud or unauthorized transactions. Features like two-factor authentication, alerts for suspicious activity, and FDIC insurance are vital.
Bottom Line
In today’s fast-paced, digital age, online checking accounts provide a convenient, accessible, and often more financially rewarding alternative to traditional banking. However, the key to making the most of these benefits is to choose the right account based on your individual needs, lifestyle, and financial goals.
By carefully considering factors like your financial habits, goals, lifestyle, potential fees, customer service, and security measures, you can find an online checking account that not only meets but exceeds your expectations. Remember, your checking account is at the heart of your financial life – choose wisely.
Frequently Asked Questions
Are online checking accounts safe?
Yes, online checking accounts are safe as long as they’re offered by a reputable bank or credit union that has FDIC or NCUA insurance. This insurance protects your money up to $250,000 per depositor.
Can I deposit cash into an online checking account?
Depositing cash into an online checking account can be more challenging than with a traditional bank. Some online banks have agreements with certain ATM networks or retail outlets where you can deposit cash. You can also deposit cash into a traditional bank account and then transfer it to your online account.
What should I do if I need to write a check?
Many online banks offer free or low-cost checkbooks. However, if you seldom write checks, you may not need a physical checkbook. Instead, you can use the bank’s online bill pay service, which sends a check or electronic payment to the recipient on your behalf.
Do online banks offer customer service?
Yes, most online banks offer robust customer service options, including phone support, live chat, email, and often extensive FAQ sections on their websites. Some even offer 24/7 support.
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At a glance
3.5
Rating: 3.5 stars out of 5
Bankrate Score
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Auto
Rating: 3.8 stars out of 5
3.8
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Cost & ratings
Rating: 4 stars out of 5
4.0
Coverage
Rating: 3.5 stars out of 5
3.5
Support
Rating: 3.5 stars out of 5
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Home
Rating: 3.1 stars out of 5
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Cost & ratings
Rating: 2.8 stars out of 5
2.8
Coverage
Rating: 4 stars out of 5
4.0
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Rating: 2.3 stars out of 5
2.3
About Bankrate Score
Bottom Line
If you live in Erie’s 12-state service area, the company could be a great choice for robust coverage and affordable premiums. Erie’s digital tools are lacking compared to its competitors, though, so it may not be the best choice for tech-focused customers.
Affordable average premiums for both homeowners and car insurance policies compared to the national average
Strong customer satisfaction rankings from J.D. Power
Erie’s home insurance offers guaranteed replacement for dwelling coverage in most states
Erie auto and home insurance is only available in 12 states and Washington D.C.
No usage-based auto insurance program available
Only a few homeowners endorsements available
Avg. annual auto insurance premium for full coverage: $1,356
Avg. annual auto insurance premium for min coverage: $486
Avg. annual home insurance premium for $250k dwelling coverage: $957
Answer a few questions to see personalized rates from top carriers
Info
What’s new with Erie?
In August 2022, Erie Insurance established Erie Strategic Ventures to help fund entrepreneurs who create innovative products and services for customers and Erie’s independent agents. The company also recently announced the addition of optional extended water coverage for homeowners policies.
Erie car insurance
Founded in 1925, Erie Insurance Group started in Pennsylvania but has since expanded to 12 states and Washington D.C. The company offers coverage options that may be difficult to find among its competitors. Its standard auto insurance policies feature a diminishing deductible, first accident forgiveness for eligible policyholders and Erie Rate Lock, depending on the state. Additional coverage options include roadside assistance, auto glass repair and personal item coverage.
Erie car insurance earned a Bankrate Score of 3.8 out of 5. This Score reflects the company’s coverage options, financial strength, customer satisfaction and available discounts. Erie lost points due to its regional availability and limited digital tools (for example, the mobile app doesn’t have a claims filing option). Erie earned an A+ (Superior) AM Best financial strength rating and placed third in J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study.
Pros and cons of Erie car insurance
Erie’s coverage options and customer satisfaction scores make it one of the best car insurance companies in states where it writes policies. Comparing pros and cons of Erie auto insurance may help you decide if the company could be a good fit for your needs.
PROS
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Roadside assistance and rental car reimbursement available
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Erie Rate Lock may help keep rates stable over time
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Auto policies include pet coverage
CONS
Close X
Available in just 12 states and the District of Columbia
Close X
No telematics or usage-based insurance program available
Close X
Mobile app does not enable policyholders to file a claim from their mobile devices
Erie car insurance cost
Erie is one of the cheapest car insurance companies based on our research of average premiums analyzed from Quadrant Information Services. Erie’s full coverage car insurance costs an average of $1,356 per year, while minimum coverage averages $486 per year.
Comparatively, the national average cost of car insurance for both coverage levels is higher, at $2,014 per year for full coverage and $622 per year for minimum coverage. Actual rates may vary based on car insurance rating factors, but the premium data below may be a useful comparison tool.
Erie car insurance rates by driving history
Bankrate bases the following average rates on data provided by Quadrant Information Services. This may not represent the price you will pay for car insurance. We do not include average rates for drivers with a history of driving under the influence (DUI) because some insurers may not write policies for motorists with a DUI conviction. If you have a DUI conviction, you may contact your insurance agent to find out how it could impact your car insurance premium.
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Erie average monthly full coverage premium
Erie average annual full coverage premium
National average annual full coverage premium
Clean driving history
$113
$1,356
$2,014
Speeding ticket conviction
$123
$1,476
$2,427
At-fault accident
$134
$1,607
$2,854
Erie average monthly minimum coverage premium
Erie average annual minimum coverage premium
National average annual minimum coverage premium
Clean driving history
$41
$486
$622
Speeding ticket conviction
$44
$527
$748
At-fault accident
$49
$592
$892
Erie car insurance quotes by age
Young drivers typically pay some of the highest average car insurance rates. Teens and other young drivers may save by remaining on their parents’ auto insurance policy until they’ve established their own households. The following average rates are based on a motorist on their parents’ policy with a clean driving record, as well as drivers listed on their own policies.
Average cost of car insurance for drivers on their parent’s policy
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Erie average monthly full coverage premium
Erie average annual full coverage premium
National average annual full coverage premium
Age 16
$240
$2,876
$4,392
Age 17
$225
$2,700
$4,102
Age 18
$219
$2,630
$3,837
Age 19
$209
$2,512
$3,345
Age 20
$205
$2,456
$3,149
Erie average monthly minimum coverage premium
Erie average annual minimum coverage premium
National average annual minimum coverage premium
Age 16
$86
$1,035
$1,470
Age 17
$81
$970
$1,362
Age 18
$79
$944
$1,261
Age 19
$74
$892
$1,070
Age 20
$73
$876
$995
Average cost of car insurance for drivers on their own policy
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Erie average monthly full coverage premium
Erie average annual full coverage premium
National average annual full coverage premium
Age 18
$249
$2,988
$6,110
Age 25
$136
$1,630
$2,473
Age 30
$122
$1,461
$2,125
Age 40
$113
$1,356
$2,014
Age 60
$107
$1,279
$1,824
Erie average monthly minimum coverage premium
Erie average annual minimum coverage premium
National average annual minimum coverage premium
Age 18
$90
$1,081
$1,967
Age 25
$48
$579
$747
Age 30
$43
$520
$647
Age 40
$41
$486
$622
Age 60
$39
$462
$578
Your deductible may be reduced by $100 for each claim-free policy year, up to a $500 maximum. This discount is only available to policyholders who purchase the Auto Plus endorsement, and its availability may vary by state.
Erie may extend both bundling and multi-policy discounts to policyholders who carry more than one insurance policy with the company.
Vehicles equipped with safety and security devices, such as airbags, anti-lock brakes and anti-theft devices, may qualify for a discount.
Erie may extend a discount to policyholders who pay their annual car insurance premium in one lump sum, rather than monthly installments.
Erie car tools and benefits
Erie extends a coverage option for non-owned autos including cars, moving vans and trailers that you use but do not own. This may be ideal for Erie drivers who do not own a vehicle but do drive on occasion.
Erie also sells boat, class car and motorcycle insurance, along with coverage for ATVs, golf carts and snowmobiles.
Erie home insurance
Erie home insurance receives high customer satisfaction scores from J.D. Power as well as 24/7 support for policyholders and a variety of coverage options. Erie offers guaranteed replacement cost coverage as part of its standard homeowners policies as well as additional living expenses.
Although Erie does not allow policyholders to file a claim through their mobile app, the company has more than 13,000 local agents and advertises a 90 percent customer retention rate year over year.
Pros and cons of Erie homeowners insurance
If you’re considering Erie for your homeowners insurance needs, it may be helpful to compare perks and drawbacks you may experience with the carrier. Here are a few of the key pros and cons Bankrate’s editorial team identified:
PROS
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Guaranteed dwelling replacement cost coverage included in standard homeowners policies
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Ranked 7th in J.D. Power’s 2022 U.S. Home Insurance Study
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Standard home insurance policies include up to $500 in pet coverage
CONS
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Only a few discounts available
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Few optional coverages available
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Not available in all states
Dwelling coverage limit
Erie average annual premium
National average annual premium
$150,000
$659
$975
$250,000
$957
$1,428
$350,000
$1,269
$1,879
$450,000
$1,601
$2,343
$750,000
$2,597
$3,761
Erie home insurance discounts
Home insurance discounts may help you save on your premium. Advertised home insurance discounts with Erie include:
You may earn a discount if your home is equipped with safety features like smoke alarms, security systems and an automatic sprinkler system.
Obtain an Erie homeowners insurance quote seven to 60 days before your current policy’s renewal date and you might earn a discount.
Customers who purchase a life insurance policy in addition to a car or homeowners insurance policy with Erie could earn a multi-policy discount.
Erie home tools and benefits
Erie’s home insurance coverage comes with unique options not found with other carriers. Its home insurance pet coverage extends coverage to up to $500 for animals, including birds and fish.
Erie offers gift card and gift certificate reimbursement coverage for its ErieSecure Home policies. Customers may receive reimbursement for up to $250 per gift card purchased from businesses within 100 miles of their home, with a maximum of $500 per policy period.
Erie life insurance
Erie offers four life insurance products: term life, whole life, universal life and Erie’s exclusive ERIExpress Life. Erie’s term life insurance may be a good option for those who want a fixed coverage term and intend for the policy to pay for expenses that may be burdensome to loved ones, such as funeral costs and mortgage or credit card debt. Whole and universal life have no fixed terms, but universal life offers the most flexible death benefit. Erie’s unique ERIExpress Life policy may be ideal for people looking for a simplified application and fast approval.
Pros and cons of Erie life insurance
The best life insurance company may be different for everyone, and each policy type serves a different purpose. The following pros and cons may help you decide if Erie life insurance is right for you.
PROS
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Multi-policy discounts available for policyholders with a life and home or auto policy.
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ERIExpress may be available without a medical exam.
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Variety of policy types to choose from
CONS
Close X
Only one rider advertised to customize coverage.
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Online quoting is not available
Close X
Only writes policies in 12 states and the District of Columbia
Erie life insurance endorsements
Life insurance endorsements, also called riders, may modify and extend your life insurance coverage. Erie’s life insurance coverage only offers one rider, a long-term care rider. Erie’s long-term care rider is only available for universal and whole life insurance policies. The long-term care rider provides an accelerated death benefit, which pays a portion of your policy’s death benefit to help pay medical expenses incurred following a covered accident or illness that requires long-term care.
Erie life tools and benefits
Erie provides a life insurance calculator on its website to help customers decide which type of policy may best fit their needs. From there, customers can request to be paired with an independent Erie agent to get a quote.
Erie customer satisfaction
Researching third-party ratings may help you decide which insurer best fits your needs. J.D. Power produces annual car insurance and home insurance studies that rate and rank insurers based on their customer satisfaction. These include the national U.S. Auto Claims Satisfaction Study and more regional U.S. Auto Insurance Study.
Agencies such as AM Best, Moody’s and Standard and Poor’s analyze the financial strength of insurers and produce ratings that may indicate the financial strength of individual companies. Erie has earned an A+ (Superior) AM Best financial strength rating.
Lastly, the National Association of Insurance Commissioners (NAIC) produces an annual complaint index report to track the prevalence of complaints lodged against insurance companies. The index employs a baseline of 1.0. Scores below 1.0 indicate that a provider had fewer complaints than expected for a company its size and vice versa.
Erie auto satisfaction
In J.D. Power’s 2022 U.S. Auto Claims Satisfaction Study, Erie ranked third in the market, with an overall customer satisfaction score of 893 out of 1,000. More regionally, Erie came in first for overall customer satisfaction in the mid-Atlantic and North Central regions. Erie has an NAIC Complaint Index of 0.56 for its private passenger policies, indicating fewer customer complaints than expected for a company its size.
Erie homeowners satisfaction
Erie ranked above average in J.D. Power’s 2022 U.S. Home Insurance Study, earning an overall customer satisfaction score of 827 out of 1,000. Erie’s homeowner policies have an impressive NAIC Complaint Index of 0.09, indicating very few complaints from policyholders.
Erie life satisfaction
Erie wasn’t rated in the annual life insurance study conducted by J.D. Power, potentially due to the company’s small size when compared to national life insurance carriers. However, the Erie Family Life company, which underwrites Erie’s life insurance products, has an NAIC Complaint Index of 0.46, which is less than half of the 1.00 baseline. Based on this data, Erie’s life insurance customers may be satisfied with the service they receive, since fewer-than-average complaints were filed.
How to file a claim with Erie
Erie gives auto and home insurance policyholders two ways to file a claim. They can contact their Erie agent or call the 24/7 claims center at 800-367-3743. Life insurance customers can file a claim by contacting their Erie agent or by calling 800-458-0811.
Erie availability
Erie writes car and home insurance policies in the District of Columbia and the following states:
Illinois
Indiana
Kentucky
Maryland
New York
North Carolina
Ohio
Pennsylvania
Tennessee
Virginia
West Virginia
Wisconsin
Erie sells life insurance in the District of Columbia and all of the aforementioned states, except New York.
Other Erie perks worth considering
Erie also offers business insurance including business automobile insurance. Business policies may protect a variety of businesses, including breweries, contractors, religious organizations, retailers and veterinarians.
Erie also offers a long list of other insurance and financial products for customers, including:
Financial services: Erie offers Medicare supplemental coverage (Medigap) and retirement accounts, including annuities and individual retirement accounts (IRAs).
Renters, condo and mobile home insurance: Erie offers a variety of insurance policies for other dwellings and living situations.
Flood insurance: Erie sells standalone flood insurance policies for homeowners and business owners.
Personal valuables insurance: This coverage may be purchased to financially protect jewelry, art, sports equipment, collections, musical instruments and more.
Erie corporate sustainability
Through The Giving Network, Erie and its employees volunteer time and money with organizations focussed on community building, environmental responsibility and safety. These initiatives include partnering with United Way and American Red Cross, as well as supporting other culture and arts organizations, entrepreneurship, education and environmental responsibility. In November 2022, the provider’s The Giving Network awarded $50,000 in grants to 10 northwest Pennsylvania environmental organizations.
With the company’s ERIE Service Corps, employees are encouraged to use a full work-day volunteering in their local community. The Corps also has a matching donation program and established the H.O. Hirt Scholarship Fund and the F.W. Hirt Employee Emergency Fund to more immediately meet the financial needs of their community.
Not sure if Erie is right for you?
Erie offers a variety of auto, home and life insurance products, but it does not write policies in all states. If you live outside Erie’s service area or need an insurer that offers a more diverse portfolio of products, you might consider one of these carriers:
Erie vs. Allstate
Allstate sells car and homeowners policies in the District of Columbia, Puerto Rico and all states except New Jersey. While Erie extends a multi-policy discount to policyholders, Allstate offers more ways to potentially reduce your premium. For instance, if you switch to Allstate, you might earn up to a 10 percent discount, plus an additional 10 percent savings each time you renew your policy. Allstate also offers a robust mobile app that allows policyholders to file claims virtually.
Learn more: Allstate insurance review
Erie vs. Travelers
Unlike Erie, Travelers offers optional rideshare coverage and gap insurance. Travelers extends many potential home insurance discounts including potential discounts for purchasing a new home and owning a LEED-certified green home. However, Travelers ranks lower than Erie in the 2022 U.S. Home Insurance Study and does not sell life insurance products.
Learn more: Travelers Insurance review
Erie vs. AAA
AAA Life Insurance Company sells term life, universal life and whole life insurance policies. AAA’s traditional term life policies offer coverage up to $5 million and give you the option to add a child term endorsement, which provides up to $20,000 in coverage for each eligible child. AAA’s roadside assistance program is robust and enables you to request battery, flat tire, emergency fuel delivery, locksmith, mechanical first aid and towing services from the convenience of the AAA mobile app. Bear in mind that AAA coverages, discounts and optional coverages may vary by location.
Learn more: AAA insurance review
Is Erie a good insurance company?
Erie has excellent financial strength ratings and earned high marks in J.D. Power’s customer and claims satisfaction studies. Additionally, the provider has NAIC Complaint Indexes that are far lower than baseline.
While Erie includes some perks in its standard auto insurance policies, like roadside assistance and rental car reimbursement, the carrier falls behind in the market by not offering a comprehensive mobile app or telematics program.
Erie’s standard homeowners policies feature guaranteed dwelling replacement cost coverage, which most insurers only offer as an endorsement, but they extend few optional coverages and discounts. Overall, Erie offers a solid portfolio of auto, home and life insurance products, but the provider only writes policies in a handful of states.
Clock Wait
46
years of industry expertise
122
carriers reviewed
20.7K
ZIP codes examined
Dollar Coin
1.2M
quotes analyzed
Methodology
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
Auto
$100,000 bodily injury liability per person
$300,000 bodily injury liability per accident
$50,000 property damage liability per accident
$100,000 uninsured motorist bodily injury per person
$300,000 uninsured motorist bodily injury per accident
$500 collision deductible
$500 comprehensive deductible
To determine minimum coverage limits, Bankrate used minimum coverage that meets each state’s requirements. Our sample drivers own a 2021 Toyota Camry, commute five days a week and drive 12,000 miles annually.
Age: Rates were calculated by evaluating our base profile with the ages 16-60 (base: 40 years) applied. Depending on age, drivers may be a renter or homeowner. Age is not a contributing rating factor in Hawaii and Massachusetts.
The rates for drivers ages 16–20 added to their parent’s policy reflect the good student and driver’s training discounts applied. The rates for drivers aged 16-20 on their own policy do not include the good student and driver’s training discounts. Additionally, 25-year-old rates are based on the driver as a renter and 30+ on the driver as a homeowner.
Incidents: Rates were calculated by evaluating our base profile with the following incidents applied: clean record (base), single speeding ticket and single at-fault accident.
Homeowners
Coverage A, Dwelling: $150,000, $250,000, $350,000, $450,000, $750,000
Coverage B, Other Structures: $15,000, $25,000, $35,000, $45,000, $75,000
Coverage C, Personal Property: $75,000, $125,000, $175,000, $225,000, $375,000
Coverage D, Loss of Use: $30,000, $50,000, $70,000, $90,000, $150,000
Coverage E, Liability: $300,000, $300,000, $300,000, $300,000, $500,000
Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required).
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Bankrate Scores
Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
Tier 3 (Support): To encompass the many ways an auto and home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Tier scores are unweighted to show the company’s true score in each category out of a possible five points.