Aura, like other identity theft protection services, pledges to keep your personal and financial information safe with capabilities like credit report monitoring — for a price.
While there are things you can do yourself to protect your credit and identity, often for free, the Aura app may be valuable if you prefer a hands-off approach or are looking for additional features like antivirus software.
Here’s what to know about Aura and how much the service costs.
What does Aura do?
Aura’s long list of features covers basics like credit monitoring, data breach alerts and identity theft insurance. The app — available for mobile and desktop devices — also scans the web for uses of your financial and personal information and includes other security features like a U.S.-based virtual private network, or VPN, an Experian credit lock and access to an expert fraud resolution team.
The credit lock doesn’t block others from accessing your credit files at the other two major credit bureaus, Equifax and TransUnion.
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How much does Aura cost?
Aura currently offers three plans with identity and fraud protection, starting at $15 per month or $144 per year (you choose whether to be billed monthly or annually). Aura offers a free 14-day trial for all plans and a 60-day money back guarantee on annual plans.
Here’s how the cost breaks down for Aura’s plans:
Individual
$144 annually ($12 per month).
$15 monthly.
$264 annually ($22 per month).
$29 monthly.
$384 annually ($32 per month).
$50 monthly.
Is Aura worth the price?
As with other services, Aura’s approach to identity theft is more reactive than proactive. You may consider paying for an Aura plan if you’ve already been the victim of identity theft and want to monitor how your information is being used. It can also be helpful if you want to step up online protection for a large number of family members. The family plan supports an unlimited number of children and devices, something many competitors don’t match.
Aura’s individual plans are less expensive than similar plans from competitors like LifeLock and IdentityForce. And if you were already considering paying for a credit lock with Experian’s CreditLock service, which costs $24.99 a month, Aura’s individual plan would save you money.
But freezing your credit and monitoring your reports on your own is free. You may also have identity theft protection or restoration services available through your bank or insurance company, or as a result of a previous data breach. See if you’re already entitled to cheaper or free resources before purchasing a separate service like Aura.
Aura pros
Aura offers insurance up to $1 million per adult to cover losses and expenses related to identity theft. Highlights also include:
Monitors credit data at all three major credit bureaus, Equifax, Experian and TransUnion, and offers an Experian credit lock.
Provides VPN, antivirus software, safe web browsing and a password manager for multiple devices.
Monitors your financial accounts, home and auto titles, and the dark web.
The family plan allows up to five adults, plus an unlimited number of kids and devices. Competitor plans typically have more restrictions.
Aura’s family plan also adds benefits like online parental controls, video game monitoring and local sex offender alerts.
Aura cons
Aura’s insurance coverage doesn’t apply to preexisting identity theft. Other potential drawbacks:
Does not monitor social media accounts.
Some features aren’t compatible with all devices.
Some users have reported difficulties using the app or staying connected to the VPN.
If you decide to cancel an annual plan after 60 days, you’ll still have to pay for the rest of the year.
Weigh the pros and cons carefully. Signing up for a free 14-day trial is a good way to test whether Aura is right for you.
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Your 40s can be a pivotal decade in your life. It’s typically a time of peak earnings, growing family responsibilities, and an increased focus on long-term financial stability. You may have a house, kids, and a busy job. College expenses may be looming. Maybe you’re hatching a plan to start your own business or buy a beach house that’ll one day be your empty-nester home.
To navigate these years successfully, it’s essential to make strategic financial moves that can secure your future and make your plans and dreams a reality. Here are some critical financial planning tips to consider as you move through your 40s.
7 Financial Moves to Make During Your 40s
In your 40s, you’re old enough to know what you want and likely have enough earning years ahead to achieve your goals — if you manage your money right. The following strategies can help you build wealth in your 40s.
1. Maintain or Replenish Emergency Funds
Life is full of unexpected twists and turns. Not all of them are fun, such an expensive car or home repair, a medical emergency, or losing your job. An emergency fund offers financial stability during a stressful time. It also saves you from running up expensive debt that could derail your financial goals.
A general rule of thumb is to have six to 12 months’ worth of living expenses stashed away for the unexpected. If you already have an emergency fund but it has been partly or fully depleted, you’ll want to prioritize replenishing it to maintain financial security.
Consider setting up automatic transfers into savings to build your emergency fund consistently. Keep these funds in a liquid, easily accessible account, such as a high-yield savings account, to ensure you can access the money quickly when needed.
2. Manage Your Debt
Debt management is a crucial aspect of financial planning at any age, but it becomes even more critical in your 40s. Since high-interest debts, like credit card balances, can significantly hinder your ability to save and invest for the future, you’ll want to prioritize paying them off as quickly as possible.
One strategy that can help is the avalanche payoff method. Here, you list your debts in order of interest rate from highest to lowest, then put extra money toward the highest-interest debt, while continuing to pay the minimum on the others. Once that debt is paid off, you put your extra funds toward the debt with the next-highest rate, and so on.
Alternative approaches to paying down high-interest debt include getting a low- or no- interest balance transfer credit card or taking out a personal loan for debt consolidation with a lower rate than you are paying on your cards.
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3. Revisit Retirement Saving
In your 40s, you’re roughly at the midpoint between entering the workforce and traditional retirement age. How you invest and save for retirement at this point in your career can strongly impact your future assets and ability to one day retire comfortably.
If you’re not currently contributing to a retirement plan, such as a 401(k) or individual retirement account (IRA), now’s a good time to start. If you have been, it’s time to assess your progress. Consider how much of a nest egg you will need to retire and, using an online retirement calculator, whether your current plan will get you there.
If you’re behind on your savings, consider stepping up your contributions or, if you’re already contributing the max allowed, making “catch-up” contributions down the road. Starting at age 50, the IRS allows higher maximums designed to help people catch up on their retirement savings goals.
4. Plan for Childrens’ College Expenses
If you have kids, planning for their future education expenses may be top of mind. College costs continue to rise, and early planning can alleviate future financial stress. If you haven’t started saving for college expenses, you may want to explore opening a 529 college savings plan, which offers tax advantages and can be a flexible way to save for educational expenses.
An online college cost estimator can help you determine how much you need to stash away each month or year, based on the year your child will likely attend college and the type of school they might choose.
Just keep in mind that it’s important to balance college savings with other financial goals, like retirement. As kids get closer to leaving the nest, you may also want to encourage them to apply for scholarships and grants, and explore financial aid options.
5. Choose or Reevaluate Insurance Coverage
Insurance is an important component of financial planning in your 40s. You’ll want to evaluate your current insurance coverage and make sure it’s adequate to meet your family’s needs. This includes not only health and home insurance, but also life and disability insurance.
Life insurance provides financial security for your family should you die prematurely. If you don’t currently have a life insurance policy, consider purchasing one. If you do have one, you’ll want to make sure your policy’s coverage amount is sufficient to cover your family’s current living expenses, outstanding debts, and future financial needs, such as college tuition for your children.
It’s also a good idea to review your disability insurance, which protects your income if you’re unable to work due to illness or injury. Many companies provide a policy through work. However, you may want to consider supplementing employer-provided coverage or, if you’re self-employed, getting your own policy. This offers a different, but equally important, safety net for you and your family.
Recommended: Which Insurance Types Do You Really Need? Here Are 6 to Consider
6. Invest Outside of Retirement
While retirement accounts are crucial, investing outside of retirement can diversify your portfolio and help you achieve goals that may be five or 10 or more years away, such as a downpayment on a vacation home or a child’s wedding.
Though investing carries risk and can be volatile in the short term (which is why you generally don’t want to invest funds you’ll need in the next few years), an investment account has the potential to grow more than other types of accounts over the long term. Consider taxable investment accounts that align with your risk tolerance and financial objectives.
7. Meet with a Financial Professional
Getting expert advice on managing your finances can be invaluable at this stage of life. Whether you opt for regular meetings or simply go for a one-time consultation, a financial professional can provide valuable insights and help you navigate complex financial decisions.
An advisor will typically look at your whole financial picture and assist you with creating a comprehensive financial plan. This may include optimizing your investment strategy and ensuring you’re on track to meet your goals, including retirement, investments, and college savings.
The Takeaway
It’s never too late to take control of your finances. In your 40s, you are likely entering your prime earning years, so it’s a good time to focus on paying down debt, preparing for the next chapter of your children’s lives, and saving and investing for your future retirement. With some wise money moves, you’ll be set to make the most of this decade and beyond.
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FAQ
What financial goals should a 40-year-old have?
Ideally, a 40-year-old will want to focus on several financial goals. These include:
• Establish or maintain an emergency fund with three to six months’ worth of essential living expenses.
• Reduce financial burdens by paying off high-interest debt.
• Ensure you’re on track with retirement savings by maximizing contributions to retirement accounts.
• Start or continue saving for children’s college expenses through plans like 529s.
• Consider investing outside of retirement to diversify your portfolio and build wealth.
How much should a 40-year-old have saved?
By age 40, financial advisors often recommend having three times your annual salary saved for retirement. This benchmark ensures you’re on track to meet long-term financial goals and maintain your desired lifestyle in retirement.
In addition, you’ll want to maintain an emergency fund with three to six months’ worth of living expenses.
Savings outside of emergency and retirement, such as investments in taxable accounts, can further enhance financial security. The exact amount can vary based on individual circumstances, income, lifestyle, and future goals.
How can I build my wealth in my 40s?
To build wealth in your 40s, you’ll want to focus on several strategies:
• Maximize retirement account contributions, taking full advantage of employer matches.
• Pay off high-interest debts to free up resources for savings and investments.
• Establish or maintain an emergency fund to cover unexpected expenses without derailing financial goals.
• Consider additional income streams, such as side businesses or rental properties.
• Diversify investments across stocks, bonds, real estate, and other assets to balance risk and growth potential.
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SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
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Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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A prime credit score typically refers to a high credit score, usually above 720. It shows lenders that you have a history of responsibly managing credit and can qualify you for better loan terms and lower interest rates.
Few numbers are as important as your credit scores. Lenders use them to determine if you qualify for auto loans, home loans, credit cards and other products. In some states, insurance companies use credit scores to calculate your premiums. You may even have to undergo a credit check to qualify for some jobs.
Whether you just got your first credit card or have more than a decade of experience managing credit, it’s important to understand the score ranges and how they’re used. Keep reading to learn more about prime credit scores in particular.
What Is a Prime Credit Score?
A prime credit score is any score that falls into the “prime” category, and according to the Consumer Financial Protection Bureau, prime scores range from 660 to 719. Some lenders may have slightly different ideas of what is classified as a prime score. Although a prime score isn’t the highest credit score you can have—credit scores generally range from 300 to 850—it’s high enough to help you qualify for many loans and credit cards.
Additional Score Categories
Prime is just one of the five categories used to classify consumer credit scores in the context of lending. The others are deep subprime, subprime, near-prime, and super-prime. Here’s what they mean:
Deep subprime (579 or lower): If you have a deep subprime score, banks view you as highly likely to default on your financial obligations. In other words, there’s a good chance you won’t repay loans and credit cards as agreed. With scores in the subprime category, you’ll find it difficult to qualify for credit. Even if you do qualify, you’ll pay the highest interest rates, making it more expensive to borrow money.
Subprime (580 to 619): Subprime scores are a little better than deep subprime scores, but you’ll still find it tough to qualify for loans and credit cards. People with subprime scores also pay higher interest rates than people with scores in the prime and super-prime categories.
Near-prime (620 to 659): If you have a near-prime score, you’re getting closer to qualifying for the lowest interest rates. With a little effort, you can make the leap from near-prime to prime, making it easier to reach your financial goals.
Super-prime (720+): If you have a score of 720 or higher, you pose the lowest amount of risk to lenders. As a result, super-prime borrowers qualify for the most favorable interest rates and loan terms.
Note that these score ranges are slightly different from the official FICO® score ranges:
Poor: 579 or less
Fair: 580 – 669
Good: 670 – 739
Very good: 740 – 799
Exceptional: 800+
Factors Used to Calculate Your Credit Scores
FICO scoring models use the following factors to calculate your scores.
Payment History
One of the best ways to boost your score is to make on-time payments, as payment history accounts for a whopping 35% of your FICO scores. If you borrow money, the lender expects to be repaid as agreed. A history of on-time payments shows that you follow through on your financial commitments.
Amounts Owed
Another major factor, accounting for 30% of your credit score, is the amount of available credit you are using on a regular basis. To maintain a prime credit score or super-prime credit score, avoid using a high percentage of your available credit. Maxing out your credit cards affects your utilization rate, which is a comparison of how much credit you have available versus how much you’re using.
For example, if you have balances totaling $5,000 against credit limits totaling $10,000, you have a 50% utilization rate. Lenders typically like to see utilization rates below 30%, so paying down debt and requesting credit limit increases can help you optimize your scores.
Length of Credit History
FICO’s models also consider your average age of accounts, along with the age of your oldest and newest accounts, when determining your scores. You don’t need a long history to achieve a high credit score, but it can help. This determines 15% of your credit score.
Credit Mix
The term credit mix refers to how many types of credit accounts you have. Some people have one or two credit cards, while others have a full portfolio of credit cards, personal loans, and auto loans. Credit mix doesn’t make up a huge percentage of your score (10%), but it’s one of the factors used to assess your creditworthiness.
New Credit
Every time you apply for a loan or a credit card, the lender checks your credit report. This is known as a “hard inquiry” on your report. There’s nothing wrong with an inquiry or two, but applying for multiple lines of credit in a short amount of time is a red flag for lenders. If a lender sees four or five inquiries in a matter of weeks, they may wonder if you’re running out of money and relying on credit to pay your bills. New credit accounts for 10% of your FICO credit score.
Benefits of Having Good Credit
Having a prime credit score opens many doors for borrowers. For example, you’re likely to qualify for the best interest rates, reducing the total cost of borrowing money. Lenders may also be willing to offer more favorable loan terms, such as more time to pay or reduced fees.
Good credit also gives you more freedom. If your car breaks down, a prime credit score makes it easier to qualify for a vehicle loan. Without a good score, you might have to rely on an unsafe vehicle or take out a loan with an extremely high interest rate. Prime credit scores may even help you secure lower rates on your auto insurance, homeowners insurance or renters insurance coverage.
Maintaining a Prime Credit Score
Once you have a prime credit score, it’s important to maintain it. You can maintain good scores by making on-time payments, keeping your credit utilization rate as low as possible and applying for credit only when you truly need it. Over time, these good financial habits may help you jump from a lower credit to higher credit.
Get your free credit score from Credit.com today to see where your credit currently lies and determine what you can do to maintain or improve it.
Are you wondering what the best passive income apps are? The best passive income apps can help you make money and build wealth while sleeping, on vacation, and more. With passive income apps, you can make money using just your phone or computer. These apps help you earn money in different ways, like investing in…
Are you wondering what the best passive income apps are? The best passive income apps can help you make money and build wealth while sleeping, on vacation, and more.
With passive income apps, you can make money using just your phone or computer. These apps help you earn money in different ways, like investing in stocks, getting cash back when you shop automatically, or renting out your things.
Passive income is money you earn without having to work all the time. You might need to do some work at the start, but after that, the money keeps coming in with little effort.
You don’t need to spend hours every day to see results. Many of these apps are easy to use and free, so they are a great way to improve your finances with little effort.
Using the right mix of passive income apps can help you make extra money regularly or even make a full-time income.
Recommended reading: 18 Passive Income Ideas To Earn $1,000+ Each Month
Best Passive Income Apps
Below are the best passive income apps:
1. Freecash
Freecash is a popular passive income app that helps you make some extra money with little effort. You can earn by completing tasks, such as taking surveys or downloading apps.
Another way that you can earn passive income with this app is by referring people to the app. You can earn up to 30% of your referral’s earnings for as long as they are a member. Your referral earnings start at 5% and can go up from there, all dependent on your affiliate earnings.
I have personally earned over $300 in passive income referral earnings from this platform (in addition to affiliate income), so I know that this is real.
Click here to sign up for Freecash.
2. RVshare
RVshare is a money making app where you can rent out your RV to others. This can help you make extra money every month. Many people use RVshare to turn their RV into a good source of passive income.
If you have an RV that you’re not using, you could make $100 to $300 a day, or more, by renting it out to others through RVshare.
RVshare is a great app for making money because it helps travelers save by renting RVs directly from owners, without a middleman. It’s like Airbnb, but for RVs.
You can rent many types of RVs on RVshare, such as:
Class B camper vans
Travel trailers
Pop-ups
Class C Motorhome
Class A Motorhome
Toy hauler
RVshare handles all payments securely and sends money to your bank account one business day after each rental starts.
You can learn more about RVshare here.
3. Neighbor
Neighbor is a self-storage app that lets you rent out extra space in your home. You can make money by offering spots like your garage, driveway, or even a spare room.
You can use this website to rent out your unused space and make up to $15,000 a year. With Neighbor, you can rent out your garage, driveway, basement, parking lot, shed, warehouse, carport, attic, street parking, or even a closet.
You can choose your own prices and decide which reservations you want to accept and host.
Neighbor provides $1,000,000 in host liability protection for your peace of mind. You also receive automatic monthly deposits directly to your bank account for fast payment.
Here’s how Neighbor works:
List your space: Describe your space and set your earning goals on Neighbor.
Respond to renters: Review requests from renters interested in your ad. You can see what they want to store and when, and decide whether to approve or decline.
Schedule move-in: Once you approve a renter, schedule their move-in date.
You can sign up for Neighbor for free here.
You can also learn more about Neighbor at Neighbor Review: How To Make Money Renting Your Storage Space.
4. Swagbucks
Swagbucks is a popular app that lets you earn money for doing simple tasks online. You can use it on both your phone and computer.
You earn points, called Swagbucks (also known as SB), for activities like taking surveys, watching videos, and browsing the web. These points can be redeemed for gift cards or cash via PayPal.
I have personally received over 110 gift cards from Swagbucks (I like to redeem my points personally for free Amazon gift cards).
Here are some ways to earn on Swagbucks:
Surveys – Share your opinions on various topics and earn points.
Videos – Watch short video clips and earn a few points for each one.
Shopping – Do your usual online shopping through the app’s links and get cash back.
Web browsing – Use the Swagbucks search engine and earn points just for searching.
Referral program – You can refer friends and family to Swagbucks and earn points.
Swagbucks is free to join and use, making it a great choice for anyone looking to make some extra money with little effort.
You can join Swagbucks through my referral link, and receive a $10 bonus.
5. Fundrise
Fundrise is one of the highest-paying passive income apps that lets you invest in real estate with income generating assets. You can start with as little as $10 and get started in around 5 minutes.
Fundrise pools your money with other investors to buy properties, such as single family homes, apartments, and industrial properties. You earn money from rent and property sales.
Investing in real estate can be risky, so make sure you understand what you’re getting into. Fundrise has an easy-to-use app and detailed updates on your investments.
Remember, your money is tied up for a while, so this is for long-term goals. Fundrise makes real estate investing simple and accessible.
You can sign up for Fundrise here.
6. Honeygain
Honeygain is a popular passive income app that lets you earn money effortlessly just by sharing your unused internet bandwidth and your internet connection. You can install it on your desktop or mobile device.
Here’s how Honeygain works:
You keep the app running in the background.
The app uses your unused internet resources.
You get paid for the data shared.
You earn money based on the amount of internet traffic routed through your connection. Honeygain pays $1 for every 10 GB of traffic.
7. Ibotta
Ibotta is a free cash-back app that helps you save money when you shop. You get rewards from shopping both in-store and online.
With the Ibotta app, you sign up for an account, unlock rebates and rewards, shop at stores like Walmart, Target, Kroger, and more, verify your purchases, and then earn cash. You can redeem rebates from hundreds of stores, and it doesn’t cost you anything – it’s free money!
Plus, Ibotta lets you earn cash back both online and in-store, setting it apart from other companies.
Ibotta stands out as one of the easiest passive income apps because you earn money while shopping as usual. It pays you in cash or gift cards for stores like Amazon and Starbucks.
Please click here to join Ibotta.
8. Airbnb
Airbnb can be a great way to earn passive income with minimal effort. By renting out properties short-term, you can make extra cash without much day-to-day work.
Whether you have an extra room, a vacation home, or even just a spare couch, Airbnb lets you list your space for short-term rentals, transforming unused real estate into a regular income source.
Airbnb manages bookings, payments, and provides insurance coverage, making it convenient for hosts once everything is set up. With its worldwide presence and easy-to-use platform, Airbnb continues to be a leading choice for earning passive income through property rentals.
9. Acorns
Acorns is a popular app that helps you save and invest your money without effort. It rounds up your everyday purchases to the nearest dollar. Then it invests the spare change into a diversified portfolio.
For example, if you buy a coffee for $3.50, Acorns rounds it up to $4.00. The extra $0.50 is invested.
You can click here to sign up for Acorns.
10. Rakuten
Rakuten is an easy-to-use app that helps you earn cash back from your shopping. You don’t need to do anything special. Just shop at over 2,500 stores and retailers through the app, the Rakuten website, or by downloading the Rakuten browser extension, and you can earn payouts.
Simply choose a store from their extensive list (including Kohl’s, REI, Toys”R”Us, and more), shop online as usual, and earn cash back effortlessly.
Rakuten earns a commission for directing you to the store where you shop, and they share a portion of that commission with you as a reward.
You can join Rakuten here.
11. Capital One Shopping
Capital One Shopping is an app that helps you save money while you shop online.
You don’t need to be a Capital One customer to use it. Just download the browser extension and start using it right away.
This automatic savings app stands out because it requires no extra effort on your part. The Capital One Shopping app automatically searches for and applies the best coupon codes as you check out, making sure that you get the most savings possible on your purchases.
You can learn more about Capital One Shopping here.
12. Fetch Rewards
Fetch Rewards is a fun way to earn rewards from your shopping receipts. You just take pictures of your receipts using the app and you get points.
I use Fetch Rewards all the time and it takes less than one minute to earn points. This mobile app is incredibly user-friendly and one of my favorites. I’ve been using it for a while now, and it’s super easy to earn rewards on the shopping you’re already doing.
With Fetch Rewards, you earn points by scanning receipts from any store – whether it’s a grocery store, clothing store, restaurant, or gas station. Then, you can redeem your points for gift cards to places like Target or Amazon, as well as other rewards.
Here’s how Fetch Rewards works:
Shop like you normally would.
Scan your receipt after you’re done.
Earn points on Fetch Rewards.
You can sign up for Fetch Rewards here.
You can also read my review at My Honest Fetch Rewards Review.
13. Robinhood
Robinhood is a popular app for investing in stocks, cryptocurrency, options, and exchange-traded funds (ETFs). It’s easy to use and has no fees or commissions, which makes it great for beginners.
Plus, Robinhood’s app is simple and clean. You can see your investments and track their performance easily.
Robinhood also allows you to buy fractional shares. This means you can invest in expensive stocks with just a few dollars.
You can even invest in dividend-paying stocks on Robinhood.
When you invest in dividend-paying stocks, you’re buying a piece of a company that gives you money regularly. Think of it like getting a small thank you for holding on to the company’s stock. These payments usually come from the company’s profits and they’re called dividends.
Here’s a vehicle I rented on Turo when I was visiting Hawaii. The person I rented from had many, many vehicles listed on the site and it seemed to be a good passive income stream for them.
14. Turo
Turo is an app that lets you rent out your car to make extra money. It is a peer-to-peer program where you cut out the middle person and rent out your car.
With Turo, you can earn about $500 or more per month with just one car. If you own a couple of cars, you might make over $2,000 per month. Your earnings depend on the type of car and how often it’s rented.
Just like renting out your RV when you’re not using it, you can also rent out your car!
It’s a cost-effective option compared to traditional rental car companies for customers, and it’s a great way to earn extra money if you’re working from home and your car isn’t in use or if you have a two-car household.
I have rented cars a few times on Turo and I have always had a good experience. It looks like a possibly good way for a person to make money.
15. M1 Finance
M1 Finance is an app where you can earn passive income.
Some of the ways you can earn passive income through this app are by investing your money in the stock market (you can customize your investment portfolio with over 6,000 stocks and ETFs) as well as saving your money in their high-yield account (at the time of this writing, their high-yield savings account rate was 5.00%).
16. Masterworks
Masterworks is an app that lets you invest in fine art.
You don’t need to be wealthy to own a piece of famous art. Masterworks purchases valuable paintings and you can buy shares in these artworks. When the painting is eventually sold, you receive a portion of the profit.
Frequently Asked Questions
Below are answers to common questions about passive income apps.
How can I make $1000 a month passively?
There are many ways to make $1,000 a month passively, such as by renting out a space on Airbnb or Neighbor, renting out a car or RV, investing in an investment app such as Masterworks or Robinhood, and more.
Can you make passive income from an app?
Yes, you can make passive income from an app. Some passive income apps include Neighbor, RVshare, Freecash, and M1 Finance.
How can I make passive income from my phone?
You can make passive income from your phone by installing apps that pay you for different things, such as renting out your stuff, getting cash back, or investing your money. For instance, Honeygain pays you for sharing your internet data, while Rakuten gives you cash back for shopping. These apps run in the background, requiring minimal effort from you once set up.
How to make $5,000 a month passively?
You can make $5,000 a month passively by investing more of your money in different kinds of investments, such as stocks and rentals. It may take some time to get to $5,000 a month in passive income, but it is possible.
What are the highest-paying passive income apps?
The highest-paying passive income apps depend on how much time, effort, and money you put into it. But, generally, passive income apps where you are investing your money (such as in the stock market) or renting out things you own (like a property rental or vehicle rental) typically pay the most.
What are some free passive income apps?
Free passive income apps include Freecash, RVshare, Neighbor, Airbnb, Honeygain, Rakuten, and Acorns.
Best Passive Income Apps – Summary
I hope you enjoyed this article on the best passive income apps.
As you can see, there are many ways to make money with passive income apps. Some will allow you to earn simply some spare cash, whereas others you may be able to build up and eventually earn a full-time income.
Some may require you to invest your money up front (like Fundrise), and some of them are free passive income apps (like Honeygain or Fetch Rewards).
The best passive income app depends on what you are looking for, the amount of time you have, and the amount of risk that you want to take on.
Enjoy complimentary access to top ideas and insights — selected by our editors.
Trinity Public Utilities District’s power lines snake through the lower reaches of the Cascade Range, a rugged, remote and densely forested terrain in Northern California that has some of the highest wildfire risk in the country. But for several years, the company has been without insurance to protect it from such a threat.
Trinity’s equipment was blamed for causing a 2017 wildfire that destroyed 72 homes and three years later its insurer, a California public agency called the Special District Risk Management Authority, told the utility that it would no longer cover it for fires started by its electrical lines. Trinity could find no other takers.
The utility’s exposure comes as wildfires are already flaring up across the U.S. West in what could be a dangerous and prolonged fire season.
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“If a fire were to start now that involved one of our power lines, it would likely bankrupt the utility,” said Paul Hauser, general manager of the local government-owned utility that serves about 13,000 rural customers in Trinity County, 200 miles (322 kilometers) north of Sacramento. That’s because without insurance, a lawsuit could put the utility on the hook to pay for damages to private homes and businesses, which could easily top the utility’s annual revenue of about $16 million.
Western utilities and beyond are finding it prohibitively expensive, if not impossible, to insure against potential fire-related claims. The trouble comes after power companies from Hawaii to Texas have collectively faced tens of billions of dollars in damages from wind-driven wildfires linked to their equipment. The issue will become more pressing as climate change makes droughts more intense and frequent, heightening the chances of more destructive infernos.
“Wildfire risk is the number one issue for utilities,” said Michael Kolodner, the practice leader for the U.S. power and renewables industry at Marsh & McLennan Companies Inc., a US insurance broker. “This is impacting every single utility in North America.”
READ MORE: Treat home insurance costs like a 1-year ARM, climate risk experts say
The insurance companies set up by the utilities are now limiting how much coverage they will provide to power companies exposed to wildfire risk, leaving them at the whim of the commercial marketplace where premiums are rising.
Overall, commercial wildfire insurance rates have gone up as much as 30% this year with premiums also increasing the past several years, according to Marsh. Portland General Electric, based in Oregon, said their fire insurance premiums doubled.
The insurance challenges are now making it more expensive and difficult for some utilities to attract the capital required to harden their grids against climate risks and build out the infrastructure needed to meet President Joe Biden’s goal of a carbon-free grid by 2035.
“If utilities can’t get insurance or if the insurance is really expensive, it’s harder for them to construct new facilities they need to build like transmission lines and distribution lines,” said Michael Wara, an expert on utility wildfire risks who serves as director of the Climate and Energy Policy Program at Stanford University. The problem is akin to potential homeowner being unable to secure a mortgage to buy a house because they can’t get property insurance, Wara said.
Randy Howard, general manager of the Northern California Power Agency, which has 16 public power utility members including Trinity, says the lack of commercial insurance is making it hard for some his utilities to attract financing to build high-voltage transmission lines that the state wants to connect to renewable energy projects.
“It’s impacting investors’ willingness to invest in these projects that we need to build,” Howard said.
READ MORE: Home insurance woes threaten mortgage lending, experts warn
The utility industry is openly discussing the need to set up a federal program that could provide a type of insurance backstop for smaller power companies that have limited financial resources. Such a fund would cover claims for utilities that have agreed to meet certain fire risk reduction standards. The fund could be modeled after one set by California after PG&E Corp. filed for bankruptcy in 2019 in the wake of starting some of the worst wildfires in state history.
As it stands now, utilities have become the “insurer of last resort” when it comes to damage claims from wildfires tied to their equipment, said Emily Fisher, general counsel at the Edison Electric Institute, an investor-owned utility trade group. The industry has become difficult to insure because there isn’t a limit to their potential wildfire liabilities, Fisher added.
Power companies also need to spend billions of dollars to make their infrastructure less prone to start fires, funding fixes such as installing weather monitoring equipment, burying power lines and replacing old poles. “It’s not a sustainable regime,” Fisher said.
Warren Buffett agrees. In the billionaire investor’s recent annual letter to Berkshire Hathaway shareholders, Buffett said he’s reconsidering his utility investments due to the heightened wildfire risk in the West. Berkshire’s PacifiCorp utility, which operates in six Western states, was found liable in 2023 for destruction caused by the 2020 Labor Day fires in Oregon. PacifiCorp is appealing the decision. The utility faces wildfire claims estimated to be as much as $8 billion, according to a regulatory filing.
“We are basically in the position of being the insurer of last resort because we cannot get enough commercial insurance,” PacifiCorp Chief Executive Officer Cindy Crane said at a S&P power markets conference in April. “We had a pretty good volume of wildfire insurance and we blew through that.”
PacifiCorp has obtained wildfire insurance, but its premiums have increased more than 400% from 2019 through 2022, a spokeswoman said.
Utilities also have been turning to state governments for help. PacifiCorp backed legislation passed earlier this year in Utah that sets up a catastrophic fire insurance fund for utilities and caps non-economic damage claims arising from utility-linked fires.
In 2019, California set up a $21 billion wildfire insurance fund to prevent additional investor-owned utility bankruptcies after PG&E was driven into Chapter 11 for sparking fires in 2017 and 2018 that killed more than 100 people and destroyed thousands of homes.
California investor-owned utilities, which contributed to half of the fund, can qualify for the coverage if they meet certain fire safety standards. The fund covers claims above $1 billion, with the utilities having to find insurance up to that amount.
Even that has proven to be difficult. PG&E decided to self-insure against wildfire risk in 2023 after the utility saw its cost for commercial wildfire insurance as a percentage of coverage jump from 4.6% in 2015 to nearly 80% in 2022, when the utility paid about $746 million for $940 million in coverage, according to regulatory filings.
PG&E estimates its self-insurance program, which works by putting aside money collected from bills for possible claims, will save customers up to $1.8 billion over the next four years compared to commercial insurance coverage. Southern California Edison has also opted to self-insure after seeing its commercial coverage rates skyrocket.
However, publicly owned, government-run utilities like Trinity aren’t part of California’s wildfire insurance fund, leaving them entirely exposed. The state’s legal regime holds utilities responsible for damage claims from fires started by their equipment — whether they were negligent or not. (While the liability standard is looser in other states, it hasn’t gotten utilities off the hook in places like Oregon).
Trinity Public Utilities District is stuck in a problematic cycle where it can’t do the work required to make its own property safer from fire. The utility wants to widen the clearing around its existing lines on federal land from 20 feet to up to 130 feet to reduce fire risk, but it cannot start that work without a new federal permit. And it cannot get a new permit unless it has wildfire insurance.
“We are kind of the poster child for this issue,” Hauser, the general manager, said. “No one will insure us.”
Extended term insurance is a way to use the cash value of a permanent life insurance policy to buy a term policy that lasts for a set number of years and has the same death benefit
. It can be useful if you can no longer afford your life insurance premiums but you still need the coverage.
Most permanent life insurance policies, like whole life insurance, charge higher premiums than term life and use part of this money to build cash value over time. These policies typically contain a “nonforfeiture” clause, which means you won’t lose the cash value that’s accumulated if you cancel the policy or allow it to lapse.
Extended term insurance is a nonforfeiture option that lets you keep your life insurance coverage for some amount of time, even though your permanent policy ends. It replaces your permanent policy with a term policy, typically of the same face amount, paid for by your accumulated cash value.
The length of the term depends on how much cash value the policy has, as well as your age when you stopped making payments. If you have an outstanding policy loan, your insurance company will deduct the amount from its cash value first. The insurer will use the remaining amount to determine how much term life insurance you qualify for
.
Pros and cons of extended term life insurance
The advantage of extended term insurance is that you can stop paying premiums and keep some coverage in place. If you die during the policy’s term, your loved ones will still receive a death benefit, which is the payout from a life insurance policy.
The downside is that you’re replacing permanent life coverage — which is typically meant to last your entire lifetime or until an advanced age — with short-term coverage. If you outlive the policy’s term, the policy will expire and your survivors won’t get a payout when you die.
If you decide you no longer need coverage or you can no longer afford premiums on a permanent policy, you’ll also typically have the option of trading in the policy for its cash surrender value.
This year’s Atlantic hurricane season might be one for the books. The National Oceanic and Atmospheric Administration (NOAA) forecasts up to 13 hurricanes between June 1 and Nov. 30, with as many as seven reaching at least Category 3 status. If the prediction is accurate, this year will be one of the most active Atlantic hurricane seasons on record.
For coastal homeowners, this could mean home damage — even if they live inland.
“You can still see wind damage, even if you’re not experiencing those maximum winds,” says Sarah Dillingham, senior meteorologist at the Insurance Institute for Business and Home Safety, which researches structure safety. With slower-moving storms, homeowners who live farther inland might have roof and soffit damage or lose some trees, Dillingham says.
Many homeowners who live in hurricane zones tend to wait until a storm is tracking toward them to get ready, but that can cause expensive mistakes.
“Being well-prepared for hurricane season is a process that takes time and thought,” says Mellanee Roberts, deputy emergency management coordinator for the City of Pearland in Texas, by email.
Here are seven tips to put you ahead of the weather.
1. Trim or remove trees near your home
“Homeowners should be sure to trim away any tree branches and landscaping that would hit the house in heavy wind,” Roberts said.
According to NOAA, a Category 1 hurricane (the weakest category) is strong enough to break large tree branches. When combined with rain-saturated soil, the winds can also uproot entire trees.
Branches that are weak or dead are the most vulnerable to high winds and can take out your roof or guttering on their way down.
Signs that a tree is in bad shape may include cracking in the trunk, loss of leaves before the appropriate season, abnormally soft roots or a hollow sound when knocking on the trunk.
If you need help removing large branches or taking down an entire tree, Dillingham says, consider calling a licensed arborist.
2. Look for loose or damaged fence boards
Winds over 39 mph are enough to turn items into projectiles, according to the National Weather Service. That means loose or damaged fence boards will be more susceptible to high winds than their secured counterparts.
To give your fence its best chance, fix or replace pieces that won’t stay attached or that show signs of damage.
Securing your fence can also protect your home. If fencing comes loose during a hurricane, the boards can become projectiles that hit your house. By ensuring your fence is prepared for high winds, you are also reducing the chance that storm debris will damage your home.
3. Inspect your roof for loose or damaged shingles
Your roof takes the brunt of hurricane winds, which can exceed 157 mph, according to the National Weather Service. That can lead to missing shingles or tiles, holes from debris and damage where the wind rips away solar panels, satellite dishes or other attachments.
If you see sections of your roof that are discolored after rain, loose or damaged shingles, loose or bent flashing that connects your chimney to the shingles, or cracked vents, it might be time to call in a professional.
Leaks in your attic after a heavy storm are also a sign that your roof could use some professional attention.
4. Clean out your gutters
Slow-moving hurricanes that sit over areas for a long time can dump several inches of rain an hour, as Hurricane Harvey did in Texas in 2017. That means gutters need to be ready to divert the water.
“Making sure that that water can easily be transported off your roof and away from your home — that’s going to be helpful,” Dillingham says.
Removing debris from your gutters will allow water to drain quickly from your roof, and clearing out downspouts will help it flow away from your home, Dillingham says. Also look for signs of damage, such as cracks or loose sections, and call a gutter company for a repair if you notice any potential problems.
5. Check your windows and doors
Hurricane-force winds can drive rain into your home through small gaps in windows and doors.
“If you’ve got a vulnerable opening, your water’s going to try to find a way in,” Dillingham says.
For windows and doors, check that the flashing — a strip of special material installed around the exterior of the openings — isn’t damaged or pulling away from the house. Look for spots where sunlight is coming through and close them with weatherstripping. Add caulking to fill spots along the windowsill that have worn away, Dillingham says.
Dillingham also recommends paying special attention to access points that open inward, such as French doors, which can fail more easily in high winds.
6. Clean out space in your garage
Although bringing loose items indoors is essential before a hurricane arrives — think of all the YouTube videos of trampolines going airborne, Dillingham says — many homeowners don’t think of this step until a storm is on its way.
To get a head start, set aside space now in your garage or shed to store patio furniture, yard decor and kids’ toys so you can quickly clear your property.
Not only does this make things easier when a hurricane is on its way, but also you’ll have space to store items during other weather events, such as strong thunderstorms (and you won’t have to buy another trampoline).
7. Don’t forget the insurance
Learn about the flood risks in your area, even if you don’t think you’re in a floodplain. Make sure you have sufficient insurance coverage to cover hurricane damage.
“Homeowners insurance is not going to cover any losses from storm surge or inland flooding due to rainfall,” Dillingham says. Also, don’t count on a home warranty to help with repairs after a hurricane. Most plans don’t cover any damage related to wind, rain, floods or fire. That includes roof damage from strong winds.
If you need flood or wind insurance, make sure you buy it in time. Most insurers stop issuing insurance policies once a storm is imminent, Roberts said.
If you have a significant amount of money in a bank or brokerage account, you may crave reassurance that your funds would be covered in the rare instance of a financial institution failing. The United States government has a couple of programs in place that help to protect savers and investors in the case of a bank failure. These programs help to ensure overall consumer confidence in the U.S. financial sector.
Two of these programs are run by government corporations known as the FDIC and SIPC. The Federal Deposit Insurance Corporation (FDIC) protects money that is held in a checking, savings, certificate of deposit (CD), or other deposit account at an insured bank. The Securities Investor Protection Corporation (SIPC) protects customers of SIPC-member broker-dealers if the firm fails financially.
While these two insurance programs have a lot of similarities, they also have a few key differences that you’ll want to be aware of.
What Is FDIC?
The Federal Deposit Insurance Corporation (FDIC) is an independent agency that was created by an act of Congress passed in 1933. During the Great Depression of the 1930s, many local and regional banks failed. Congress created the FDIC to help ensure that people would not lose their hard-earned money in the case of future bank failures.
The FDIC insures $250,000 per depositor, per insured bank, for each account category (such as single, trust, or joint accounts). Since FDIC insurance first went into effect in 1934, no depositor has lost any insured money that was held in an eligible bank.
While the FDIC offers insurance for deposits held at participating banks, the National Credit Union Administration (NCUA) insures deposits held at credit unions. It’s important to understand that key difference between the FDIC and NCUA.
Also worth noting is that some financial institutions offer programs which can insure excess deposits for more than the $250,000 limit with extended insurance coverage.1 This is typically accomplished by bank partnerships which ensure that no single financial institution holds more than the $250,000 FDIC limit for a client.
If you want to keep more than $250,000 on deposit, it can be worthwhile to look into these expanded FDIC insurance coverage offers.
What Is SIPC?
In addition to the FDIC and the NCUA, the SIPC is a nonprofit organization that is set up to protect U.S. consumers. The Securities Investor Protection Corporation (SIPC) was started when Congress passed the Securities Investor Protection Act of 1970. The SIPC protects the securities and cash in a brokerage account, up to a total amount of $500,000.
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SIPC vs FDIC
When comparing the SIPC to the. FDIC, you will learn that they are two different organizations. They share the goal of protecting accounts held in U.S. financial institutions and instilling consumer confidence.
Here’s a look at how the SIPC and FDIC are similar and different:
Securities Investor Protection Corporation (SIPC)
Federal Deposit Insurance Corporation (FDIC)
Protects money invested in brokerage accounts
Protects money invested in bank accounts
Protects the securities and cash in your brokerage account up to $500,000
Protects up to $250,000 per depositor, per ownership category, per bank
Founded in 1970
Founded in 1934
Applies if a brokerage firm becomes insolvent and/or goes bankrupt
Applies when a bank fails
Similarities
The SIPC and FDIC share the same goal — ensuring that money and investments held in U.S. accounts remain in the hands of consumers. One isn’t necessarily better than the other, since they apply to different kinds of financial holdings. No matter where you are holding your money and/or investments, you’ll want to make sure that your investments are insured by either the FDIC, NCUA, or SIPC.
Differences
The biggest difference between the FDIC and the SIPC is when they apply. The FDIC covers deposits held at certain banks. The SIPC applies to investments at brokerage accounts.
Another difference is the amount of coverage. The FDIC protects up to $250,000 in a bank account, while the SIPC covers up to $500,000 in a brokerage account, including up to $250,000 protection for cash in your brokerage account.
Pros and Cons of FDIC vs SIPC
There aren’t really pros and cons when comparing the insurance offered by the FDIC and SIPC. It’s not a matter of, say, SIPC insurance vs. FDIC: They are not competitors. Each organization works in a slightly different way.
In terms of upsides, the FDIC covers deposits held by FDIC-insured banks. That means if you have money in a checking, savings, CD, or other kind of depositor account, held at an insured bank, you would be covered against loss in the very rare instance of the bank failing. The downside, if you want to look at it that way, is that this insurance doesn’t extend to brokerage accounts.
The SIPC covers the value of investments held in a brokerage account. As for positives, the reassurance of knowing your funds are covered is an excellent feature. However, the downsides could be seen as the limits of this coverage: up to $500,000 and only for funds held per SIPC guidelines.
Because they work in different ways, the FDIC and SIPC complement each other to work towards strengthening consumer confidence.
💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.
Is Your Bank Account Insured?
No matter where you keep your money, you’ll want to make sure that the money in your account is insured by a program such as the FDIC or SIPC. Being insured by the FDIC is a component that can be used to rate banks against each other.
It is usually fairly straightforward to find out if your bank is insured by the FDIC. To find out if your bank is FDIC-insured, go to the BankFind Suite on the FDIC website.
It may be more complicated to find out if your brokerage account is held in an account covered by the SIPC. If you cannot find the answer on the broker’s website, contact them to make sure.
Opening a SoFi Savings Account
Are you looking for a new home for your money? See what a SoFi Checking and Savings account can offer.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
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FAQ
Is SIPC as good as FDIC?
The Securities Investor Protection Corporation (SIPC) and Federal Deposit Insurance Corporation (FDIC) are not direct competitors. They insure investments and deposits at brokerage firms and banks, respectively.
Is it safe to keep more than $500,000 in a brokerage account?
Whether it’s safe to keep that much money in a brokerage account depends on your individual risk tolerance. Just keep in mind that the SIPC will only cover up to $500,000 in a brokerage account, which includes $250,000 in cash in your brokerage account.
What does SIPC not cover?
The SIPC covers what it defines as “securities” — stocks, bonds, Treasury securities, certificates of deposit, mutual funds, money market mutual funds, and certain other investments. SIPC does not protect most commodity futures contracts, foreign exchange trades, investment contracts and fixed annuity contracts that are not registered with the U.S. Securities and Exchange Commission under the Securities Act of 1933.
Photo credit: iStock/AlexSecret
1SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by banks in the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms. See list of participating banks at SoFi.com/banking/fdic/receivingbanks.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
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The Priority Pass airport lounge program allows members access to over 1,500 airport lounges and restaurants worldwide. Two of those Priority Pass locations are at Harry Reid International Airport in Las Vegas.
The airport has two separate terminal buildings, Terminal 1 and Terminal 3. There’s one Priority Pass lounge in each terminal, and you can move between the two terminals post-security by tram if you want.
The Club, which runs nearly two dozen airports around the U.S. (as well as a few in the U.K.) operates both lounges.
Whether you’ve got a flight delay, a long layover or just need to kill time before your flight, these two Priority Pass lounges in Las Vegas can be a nice place to hang out. There, you’ll find complimentary refreshments and a comfier seat than you’d likely find in the general terminal.
Here’s a guide to those two LAS Priority Pass lounges.
Where to find LAS Priority Pass lounges
The entrance to the lounge at Terminal 1. (Photo by Sally French)
The Club LAS, Terminal 1 (near Gate D33): This lounge is located after security on Level 2 of Terminal 1 near Gate D33.
You can also get to this lounge from Terminal 3, though you’ll have to first hop on the Red Line train. Budget 15-20 minutes of commute time (one-way) if you’re coming from Terminal 3.
The Club LAS, Terminal 3 (across from Gate E2): This lounge is located after security in Terminal 3 by Gate E2.
Just as you’d ride the Red Line train to get from Terminal 3 to Terminal 1, you’d board the same train in the opposite direction to get to this lounge from Terminal 1. Again, account for that same commute time.
What to expect inside the LAS Priority Pass lounges
Since The Club runs both Priority Pass lounges, expect similar quality furnishings, snacks and other amenities. Here’s a look inside the Terminal 1 version of the lounge:
Food
(Photo by Sally French)
Food at The Club is a mix of self-service buffet and made-to-order dishes. All the food inside is complimentary.
Crispy breaded cauliflower is served with a chimichurri aioli dipping sauce. (Photo by Sally French)
To order, you scan a QR code at your table or counter seat, which takes you to a website where you can choose from a variety of menu items. Choose as many dishes as you want — and order as many times as you want.
The Protein Bowl consists of roasted veggies topped with chicken, black beans, corn, pico de gallo and avocado. (Photo by Sally French)
Portion sizes are relatively small, so count on ordering at least a few plates if you’re seeking a full meal. Menu items include chicken tacos, soup, breaded cauliflower and a protein bowl.
Besides the made-to-order items, you can access a self-service buffet anytime.
(Photo by Sally French)
There, you’ll find tea and an espresso maker that whips up coffee beverages, including lattes and mochas.
(Photo by Sally French)
There’s also a salad bar and fruit.
Seating
The seating is varied, providing options for your lounge activity of choice — whether that’s snoozing, dining or getting work done. One room, which is separated from the food, features couches and chairs with footrests that might accommodate a more comfortable nap.
(Photo by Sally French)
Counter seating makes it possible to get work done. There are a good number of power outlets. Plus, Wi-Fi is free.
(Photo by Sally French)
There’s a good amount of seating, but this lounge can sometimes get packed. Occasionally, there’s even a waitlist to get in.
Accessing Priority Pass lounges in Las Vegas
You could theoretically get in to both Las Vegas Priority Pass locations in a single day, and you could bring a friend. Here’s what you need to know about admission and guest policies.
How to get in to the LAS Priority Pass lounges
Many people access these two lounges by purchasing Priority Pass membership, which typically costs from $99 to $469 a year. That said, you can score complimentary membership through many premium travel credit cards.
10 complimentary Priority Pass lounge visits per year. Enrollment required.
Terms apply.
Eight free Priority Pass lounge visits per year.
Learn more
Both LAS Priority Pass lounges are located airside (past the security checkpoint); you’ll need your membership, a same-day boarding pass and a valid ID to get past security and in to a lounge.
Can I bring a friend?
Children under age two are admitted free. For everyone else, the ability to bring a guest depends on the terms of your Priority Pass membership.
Membership: If you purchased membership through Priority Pass, you’ll typically need to pay $35 to bring a guest with you.
Card perks: If you have membership through a credit card, you might be able to bring a guest or two for free. For example, Chase Sapphire Reserve® members can bring up to two guests for free. Check the terms of your credit card so see if guests are included.
Day passes: Anyone can purchase a day pass for either of the two lounges, which typically costs $50. With a day pass, you can enter up to three hours before your scheduled flight departure.
Other Las Vegas airport lounges to know
The Club LAS lounges aren’t the only lounges at the Las Vegas airport. And in fact, they’re far from the best.
But The Club lounges rank among the easiest to get in to — especially if you have a credit card that offers Priority Pass.
Travel credit cards can offer all sorts of value, ranging from the ability to earn bonus points to travel insurance coverage for purchases made on the card. And given the complimentary food and drinks you can nosh on at Priority Pass lounges like these, premium travel credit cards can make waiting in airports just a little bit better.
To view rates and fees of The Platinum Card® from American Express, see this page.
To view rates and fees of the Marriott Bonvoy Brilliant® American Express® Card, see this page.
To view rates and fees of the Hilton Honors American Express Card, see this page.
How to maximize your rewards
You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:
With flight disruptions, natural disasters, and other issues, travel insurance has become a popular option for travelers. While you can purchase travel insurance through third-party providers (and get specific insurance when booking flights, hotels, and rental cars), you may already have credit card travel insurance at your disposal.
So, should you choose a credit card specifically because it offers travel insurance? Below, we’ll take a closer look at what credit card travel insurance is, how it works, what it covers, and why you might want a credit card with travel insurance ahead of your next adventure.
What Is Travel Insurance?
Travel insurance protects consumers against financial losses when traveling domestically or internationally. It can cover everything from lost luggage to new hotel arrangements because of canceled flights to medical emergencies while on vacation.
Travel insurance can also protect you before your trip. If something changes, like a family emergency, that will keep you from traveling as planned, travel insurance might get you a refund for your expenses.
You can find travel insurance through insurance companies, travel agents, and insurance comparison sites. Your car insurance policy may insure you even in a rental car, and certain hotel booking sites may allow you to make refundable accommodations for a fee. But did you know that your credit card may also already cover portions of your trip?
How Does Credit Card Travel Insurance Work?
Credit card travel insurance is a set of coverages offered by select credit cards to protect you when traveling on qualified trips. How credit card travel insurance works varies by card, however. It’s important to read the fine print of your credit card to understand what may and may not be covered.
The main thing to remember is that you typically need to use the credit card when booking your major travel expenses (airfare, lodging, and transportation) for those costs to be covered should something happen.
Recommended: Tips for Using a Credit Card Responsibly
Types of Travel Covered by Travel Insurance
Each travel credit card will have its own inclusions and exclusions for travel insurance. But generally, credit cards with travel insurance may offer trip protection and coverage for unexpected medical expenses.
Trip Protection
Trip protection covers a wide range of potential insurances your credit card might offer when traveling:
• Trip cancellation and interruption insurance: If you prepaid for a trip and have to cancel it, or are on a trip and need to end it early, your credit card may cover this. Read your credit card’s policy closely to understand how your credit card works and what qualifies as a covered trip cancellation or trip interruption. Unexpected injuries or illness, inclement weather, terrorist action, a change in military orders, and jury duty are examples of reasons a trip may be canceled or end early — and be covered by credit card travel insurance.
• Trip delay insurance: If your flight, bus, cruise, or other transportation (called a common carrier) is delayed or canceled and you miss activities or lodgings that you’ve already paid for, your credit card may cover this. In addition, such policies might cover your expenses as you scramble to find new lodging, meals, and transportation.
• Rental car insurance: Check with your car insurance provider before booking a rental to understand if your coverage extends to rentals. If it does not (or if you do not want to make a claim with your car insurance provider), your credit card might also serve as an insurance option in the event of an accident. Read the fine print carefully; many credit cards require that you decline the insurance from the rental company for the credit card travel insurance to apply. Some credit cards only offer secondary car insurance, meaning they require you to file a claim through your personal car insurance first.
• Delayed or lost baggage insurance: If an airline loses or damages your baggage, you can make a claim for the (depreciated) contents of the bag. Some credit cards may even cover delayed baggage since it can put a dent in your plans. Just check your policy: You may have to put in a claim with the airline before your travel credit card will step in.
Medical Coverage
Travel insurance through credit cards may cover medical expenses as well, including:
• Medical insurance: If your health insurance doesn’t cover medical costs incurred abroad, travel medical insurance might cover qualified expenses. In most cases, Medicare does not cover health costs incurred outside of the U.S., so travel insurance can be helpful for seniors relying on a government health plan.
• Accident insurance: While we don’t want to assume the worst can happen, this insurance sometimes offered through credit cards offers a payout if you are killed or seriously injured (such as dismemberment or loss of sight, hearing, or speech). This applies while traveling on a common carrier or on a covered trip paid for with the card. In this way, accident insurance can operate like life insurance while traveling.
• Emergency evacuation: If you fall ill or are injured while traveling and need to be evacuated, including through emergency airlift, this coverage will pay for associated expenses. This also may cover emergency evacuations due to extreme weather or political unrest.
Recommended: Preparing Financially for Travel
Benefits of Credit Card Travel Insurance
Credit cards offering travel insurance have multiple benefits. Not all credit cards offer travel insurance, however, so it’s a good idea for consumers to weigh these benefits against benefits of other credit cards to determine which card is right for them.
Among the benefits of credit card insurance are:
• Financial security: Travel can be a big expense. When unplanned events cut trips short or leave you stranded, travel insurance can protect the money you have spent.
• Emergency coverage: Whether you encounter dangerous weather, a terrorist incident, or a medical emergency during travel, having travel insurance can make it easier to deal with crises while on vacation.
• A sense of comfort: Ultimately, insurance policies can ease consumers’ worries when traveling. Knowing that there is a Plan B when your best-laid travel plans go awry can be comforting, especially when facing an emergency in an unfamiliar place.
Recommended: Tips for Finding Travel Deals
Picking a Credit Card for Travel Insurance
When looking for a new credit card, you can search specifically for cards that offer travel insurance among different credit card rewards. Note that many of these can have annual fees, so they might only be a good choice if you’re a frequent traveler.
Before applying for a credit card, check your credit score to ensure you can qualify.
If travel insurance is not your top priority for choosing a credit card, you can consider other incentives, like credit card bonuses for new customers or cash back rewards.
Recommended: What Is a Charge Card?
Filing a Travel Insurance Claim
If you experience an unexpected event, like a delayed flight, during your trip, calling your credit card company to ensure your emergency expenses will be covered can be a smart idea. This might keep you incurring credit card payments for meals or lodging that won’t actually be covered.
Look at the back of your credit card to find the phone number for a benefits administrator. They can help you as you begin your claim process.
As explained previously, certain credit cards may require you to file a claim with another entity before they get involved. For example, a credit card offering secondary auto insurance requires that you file with your personal car insurance company first. Likewise, if an airline loses your luggage, a credit card’s travel insurance policy may stipulate that you file first with the airline.
When you know you will be filing a claim, saving your receipts (and taking photos of them as you go) can be a smart way to stay organized. Filing as soon as you’re home (or even while still traveling) may expedite the process. In fact, some credit card insurance policies might have deadlines for filing claims.
The Takeaway
Some credit cards include travel insurance among their perks. Insurance coverage can vary, but it might cover delayed flights, trip cancellations, emergency medical expenses, and lost luggage. Travel cards with such coverage often have annual fees, so it’s a good idea for consumers to weigh multiple options when selecting a credit card and insurance policies.
Whether you’re looking to build credit, apply for a new credit card, or save money with the cards you have, it’s important to understand the options that are best for you.
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FAQ
How do I know if my trip is covered?
Not every credit card offers travel insurance. Always read the fine print of your credit card before making travel insurance decisions ahead of and during your trip. If the legal jargon is confusing, you can typically contact a benefits administrator for clarification. Look at the back of your credit card to find the number.
What does travel insurance cover?
Every credit card travel insurance policy is different. Common coverages include trip cancellation or interruption, accident and medical, lost luggage, and even rental car insurance. Research your card’s policy ahead of your next vacation.
Will the expenses not charged to my card be covered?
Some credit cards with travel insurance require that you use those cards on travel expenses for the insurance to apply. Others may automatically apply certain types of coverage, like medical coverage, regardless of what card you used to book your trip. Reach out to your card’s benefits administrator before travel if you need help interpreting the travel insurance policy.
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