We’re expecting mortgage rates to remain in a tight range this week but we could see some slight movement as the economic reports roll out. The most important report for investors will be the monthly jobs report on Friday morning. That report always has the potential to influence where mortgage rates go. Read on for more details.
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Market Outlook 7.2.18 from Total Mortgage on Vimeo.
Where are mortgage rates going?
Rates inch lower to start holiday shortened week
Here we go with another week. U.S. financial markets are closed for July 4th on Wednesday, but we still have several economic reports out that could influence mortgage rates, including the monthly jobs report for June on Friday morning.
That report is always one of the biggest market moving pieces of economic data each month, and there’s no reason to believe that this time around will be different. Analysts are calling for an increase of 191,000 jobs to the U.S. economy.
That’s a solid reading that would likely put some upward pressure on mortgage rates. Typically, positive economic data signals to investors that they can take on more risk, pushing money out of bonds and into stocks.
Mortgage rates are largely tied to long-term government bond yields, such as the 10-year Treasury yield. When demand for these bonds lessens, yields rise and bring mortgage rates with them.
Rate/Float Recommendation
Lock before rates rise
What happens this week largely depends on the monthly jobs report on Friday. If the numbers come in as expected, it would signal to the Fed that the U.S. economy is strong enough to follow through with the two more rate increase projected for this year.
That would likely cause investors to move out of bonds and into stocks, bringing mortgage rates higher.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
PMI Manufacturing Index
The PMI Manufacturing Index hit a 55.4 in June. That’s slightly above the level that analysts had predicted.
ISM Mfg Index
The ISM Mfg Index came in at a 60.2 for June. That’s just above the mark that analysts had expected.
Construction Spending
Construction spending for May rose by 0.4%, putting it at 4.5% year over year.
Notable events this week:
Monday:
PMI Manufacturing Index
ISM Mfg Index
Construction Spending
Tuesday:
Wednesday:
Markets Closed: July 4th
Thursday:
ADP Employment Report
Jobless Claims
PMI Services Index
ISM Non-Mfg Index
FOMC Minutes
EIA Petroleum Status Report
Friday:
Employment Situation
International Trade
*Terms and conditions apply.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
One of the biggest events in the aviation world is about to kick off for the first time in four years.
The famed Paris Air Show is set to officially return Monday for the first time since 2019, the second major European air show since the COVID-19 pandemic began.
Want more airline-specific news? Sign up for TPG’s free biweekly Aviation newsletter.
The Paris Air Show, or Salon international de l’aeronautique et de l’espace de Paris-Le Bourget, takes place biennially on odd-numbered years, switching off with the Farnborough Air Show outside of London. Farnborough returned last year for the first time since the pandemic canceled the 2020 show.
Complete coverage from the 2023 Paris Air Show:
Major joint air shows, which mix civil and military aviation, offer opportunities for companies to showcase their latest products and innovations, and for plane manufacturers to display aircraft and announce new products and developments. That includes up-close walk-arounds, interior tours of new aircraft and riveting flying displays that can see test pilots pushing jetliners, helicopters, fighter jets and stunt aircraft to their limits.
Importantly, the shows also serve as a chance to finalize and announce deals and orders with customers.
There are also several smaller regional joint air shows around the world, including in Dubai, Singapore and Johannesburg, which often focus more on those regions’ airlines and products that might suit them. Paris and Farnborough, however, are typically considered the “home” shows for Toulouse, France-based Airbus and Arlington, Virginia-based Boeing, the two largest passenger aircraft-makers, giving the shows an extra boost of importance.
They’re also the main home shows for American and European airlines, which typically have a presence and sometimes announce new orders.
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What to expect at the Paris Air Show
There has been little indication that either plane-maker plans to announce a new aircraft program in Paris this year, although surprises are always possible.
Nevertheless, the show looks likely to feature some exciting updates and showcases.
Boeing plans to return with its 777-9, part of the new 777X generation, which first made its public debut at the 2021 Dubai Airshow, as well as the 737 MAX 10, which has moved closer to certification this year following a deal in Congress to allow certification of certain adopted tools from already-certified 737 MAX models.
Boeing also plans to highlight the passenger interior of the new 777X for the first time, which it says offers new flexible and spacious options for customers.
New Saudi Arabian mega-airline Riyadh Air, which ordered up to 72 Boeing 787 Dreamliners earlier this year, is expected to make its public debut with its very first airplane on display featuring the newly announced livery, while Gulf carrier Qatar Airways has scheduled several media events throughout the show.
The new eVTOL sector will take a more prominent spot at this year’s show than in the past, with Eve Air Mobility and Boeing-backed Wisk expected to display full-scale production mockups of their flying taxi-type aircraft, which remain in development. Other aspirational or in-development programs, like Boom Supersonic, will also have a large presence at the show.
Airbus, meanwhile, will display its in-demand A321LR and the hotly anticipated long-range A321XLR, which was announced at the 2019 show and is undergoing the certification process after completing its first test flight last year. The 321XLR is expected to take part in the flying demonstrations for the first time at an air show.
Boeing, which has announced a spate of major orders in the first half of this year — including a massive sale of its workhorse 737 MAX to budget carrier Ryanair last month — expects a relatively quieter show in terms of orders, according to one source, while Airbus is anticipating a splashy opening with an order for up to 500 A320neo aircraft from Indian carrier IndiGo, Bloomberg first reported.
Reports of an imminent Delta order for new wide-body aircraft emerged last month, which could be finalized and announced during the show.
Still, a run of orders remains possible as airlines scramble to secure delivery slots as travel demand grows and supply chain interruptions stymie plane-makers’ efforts to get aircraft into customers’ hands. Thinking ahead, airlines are planning their fleets for the 2030s and looking to avoid waiting too long and missing prime delivery opportunities.
Meanwhile, less splashy but nevertheless crucial suppliers like engine-makers and other component manufacturers will demonstrate new tools and parts that could help transform aviation, unlocking efficiency, longer range or more dynamic options for aircraft.
One of the biggest events in the aviation world is about to kick off for the first time in four years.
The famed Paris Air Show is set to officially return Monday for the first time since 2019, the second major European air show since the COVID-19 pandemic began.
Want more airline-specific news? Sign up for TPG’s free biweekly Aviation newsletter.
The Paris Air Show, or Salon international de l’aeronautique et de l’espace de Paris-Le Bourget, takes place biennially on odd-numbered years, switching off with the Farnborough Air Show outside of London. Farnborough returned last year for the first time since the pandemic canceled the 2020 show.
Complete coverage from the 2023 Paris Air Show:
Major joint air shows, which mix civil and military aviation, offer opportunities for companies to showcase their latest products and innovations, and for plane manufacturers to display aircraft and announce new products and developments. That includes up-close walk-arounds, interior tours of new aircraft and riveting flying displays that can see test pilots pushing jetliners, helicopters, fighter jets and stunt aircraft to their limits.
Importantly, the shows also serve as a chance to finalize and announce deals and orders with customers.
There are also several smaller regional joint air shows around the world, including in Dubai, Singapore and Johannesburg, which often focus more on those regions’ airlines and products that might suit them. Paris and Farnborough, however, are typically considered the “home” shows for Toulouse, France-based Airbus and Arlington, Virginia-based Boeing, the two largest passenger aircraft-makers, giving the shows an extra boost of importance.
They’re also the main home shows for American and European airlines, which typically have a presence and sometimes announce new orders.
Sign up for our daily newsletter
What to expect at the Paris Air Show
There has been little indication that either plane-maker plans to announce a new aircraft program in Paris this year, although surprises are always possible.
Nevertheless, the show looks likely to feature some exciting updates and showcases.
Boeing plans to return with its 777-9, part of the new 777X generation, which first made its public debut at the 2021 Dubai Airshow, as well as the 737 MAX 10, which has moved closer to certification this year following a deal in Congress to allow certification of certain adopted tools from already-certified 737 MAX models.
Boeing also plans to highlight the passenger interior of the new 777X for the first time, which it says offers new flexible and spacious options for customers.
New Saudi Arabian mega-airline Riyadh Air, which ordered up to 72 Boeing 787 Dreamliners earlier this year, is expected to make its public debut with its very first airplane on display featuring the newly announced livery, while Gulf carrier Qatar Airways has scheduled several media events throughout the show.
The new eVTOL sector will take a more prominent spot at this year’s show than in the past, with Eve Air Mobility and Boeing-backed Wisk expected to display full-scale production mockups of their flying taxi-type aircraft, which remain in development. Other aspirational or in-development programs, like Boom Supersonic, will also have a large presence at the show.
Airbus, meanwhile, will display its in-demand A321LR and the hotly anticipated long-range A321XLR, which was announced at the 2019 show and is undergoing the certification process after completing its first test flight last year. The 321XLR is expected to take part in the flying demonstrations for the first time at an air show.
Boeing, which has announced a spate of major orders in the first half of this year — including a massive sale of its workhorse 737 MAX to budget carrier Ryanair last month — expects a relatively quieter show in terms of orders, according to one source, while Airbus is anticipating a splashy opening with an order for up to 500 A320neo aircraft from Indian carrier IndiGo, Bloomberg first reported.
Reports of an imminent Delta order for new wide-body aircraft emerged last month, which could be finalized and announced during the show.
Still, a run of orders remains possible as airlines scramble to secure delivery slots as travel demand grows and supply chain interruptions stymie plane-makers’ efforts to get aircraft into customers’ hands. Thinking ahead, airlines are planning their fleets for the 2030s and looking to avoid waiting too long and missing prime delivery opportunities.
Meanwhile, less splashy but nevertheless crucial suppliers like engine-makers and other component manufacturers will demonstrate new tools and parts that could help transform aviation, unlocking efficiency, longer range or more dynamic options for aircraft.
Sustainable living has become an increasingly important focus in today’s world, with individuals and communities alike seeking ways to reduce their carbon footprints. When it comes to building or renovating homes, sustainable practices and energy-efficient design have taken center stage. In response to this growth, several organizations offer certification programs to measure sustainability and push people to achieve more. But with numerous certifications and standards available, navigating the realm of sustainable building can be overwhelming.
Luckily, this Redfin article has everything you need to know. Learn what these programs are all about, and which one is right for your home. Whether you live in a house in Wilmington, NC, or are building a new home in Tampa, FL, read on to learn about the different certifications and requirements, so you can make informed decisions and choose the right path towards a greener home.
LEED (Leadership in Energy and Environmental Design)
Focus areas: Whole building efficiency, including water, energy, materials, and air quality.
Property types: Commercial, residential, and public properties, and communities and cities.
Benefits for homeowners: Pairs well with other certification programs and has a wide range of certification levels.
Downsides: May not go far enough to reduce your carbon footprint.
Cost: $225 + additional fees. Pricing is reduced for members.
Established by the U.S. Green Building Council (USGBC) in 1993, LEED is arguably the most widely recognized green building certification system. LEED provides a framework for healthy, highly efficient, and cost-saving green buildings. It offers certification across a spectrum of building types and focuses on several key areas: sustainable sites, water efficiency, energy and atmosphere, materials and resources, indoor environmental quality, innovation, and regional priority.
The four LEED certification levels include Certified, Silver, Gold, and Platinum, which correspond to the number of points a project earns across these categories. Buildings receive annual audits to ensure they continue meeting necessary standards.
For more details, read our definitive guide: What Is LEED Certification? Tips for Homeowners
ENERGY STAR
Focus areas: Energy efficiency.
Property types: Products; commercial, residential, and public properties.
Benefits for homeowners: ENERGY STAR buildings require 15% less energy than standard buildings, meaning you’ll save money over the long run.
Downsides: ENERGY STAR is a fairly basic certification that only applies to energy use. This is best paired with other certifications.
Cost: $0-$1,500
The ENERGY STAR certification is a joint program of the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy. It aims to help businesses and individuals save money and protect the environment through superior energy efficiency. Most people associate ENERGY STAR with efficient appliances, but it also applies to buildings and houses.
Buildings that earn the ENERGY STAR label have to meet strict guidelines for energy efficiency, typically making them at least 15% more energy-efficient than standard buildings. Apart from energy efficiency, ENERGY STAR also provides tools and resources for improving water efficiency.
For more details, read our definitive guide: ENERGY STAR Certification: What Homeowners Need to Know
Living Building Challenge
Focus areas: Complete building and property sustainability and regeneration.
Property types: Commercial, residential, and public buildings and properties, and neighborhoods and cities.
Benefits for homeowners: The LBC provides the most comprehensive certification, so you can be confident your home is actively restoring the environment. Living Building Certification also applies to an entire property, while most others only apply to just the building.
Downsides: It is extremely difficult and time-consuming to fulfill every requirement, and can be expensive.
Cost: $50-$250
The Living Building Challenge (LBC), administered by the International Living Future Institute, is likely the most rigorous and comprehensive green building certification in the world. It uses a regenerative design framework that requires projects to operate positively instead of just passively.
The LBC comprises seven performance categories, or “Petals”: Place, Water, Energy, Health & Happiness, Materials, Equity, and Beauty. To be certified, a project must meet a series of ambitious performance requirements over a minimum of twelve months of continuous occupancy. Because of its difficulty, only four residential properties have received full certification. However, the LBC offers other certifications, including Petal certification and net-zero building certification.
For more details, read our definitive guide: Living Building Challenge Certification for Homeowners: Pros and Cons
BREEAM (Building Research Establishment Environmental Assessment Method)
Focus areas: Whole property sustainability, including where materials come from and how much your home contributes to pollution.
Property types: Commercial, residential, and public buildings and properties.
Benefits for homeowners: Accessible worldwide.
Downsides: Not as comprehensive or flexible as some other programs.
Cost: Depends on the size and scope of the project. Assessors are also paid separately.
Established in the UK in 1990, BREEAM is the world’s longest-running method of assessing, rating, and certifying buildings. BREEAM encourages designers, clients, and others to think about low-carbon and low-impact design, minimizing the energy demands created by a building before considering energy efficiency and low carbon technologies. BREEAM is comprehensive and also focuses on where products come from and who makes them.
Earth Advantage
Focus areas: Residential and low-income homes, and providing green home data for the general public through the Green Building Registry.
Property types: Residential buildings.
Benefits for homeowners: Extremely affordable and promotes sustainability in low-income developments.
Downsides: Not as comprehensive as other certifications.
Cost: $0
The Earth Advantage Certification focuses on promoting sustainable building practices that improve the environment and society by creating better model codes, building standards, and certification systems. It certifies residential buildings, including single-family and multifamily, using different rating systems for both. Earth Advantage can also certify projects for LEED.
In general, Earth Advantage buildings are healthier, more energy-efficient, and offer a lower cost of ownership over the lifetime of the building. To receive certification, a home must meet stringent criteria across five categories: energy, health, land, materials, and water.
SITES (The Sustainable Sites Initiative)
Focus areas: Planning, design, construction, and management of landscapes and other outdoor spaces. SITES does not verify buildings except in specific circumstances.
Property types: Commercial, residential, and public outdoor spaces.
Benefits for homeowners: Promotes sustainable landscaping and healthy outdoor living.
Downsides: Expensive and only applies to landscaping and outdoor areas. Best for large properties or paired with other certifications.
Cost: $6,500-$9,500 (less expensive for members).
SITES is a sustainability-focused framework that ushers landscape architects, engineers, and others toward practices that protect ecosystems and enhance the benefits of ecosystem services. Landscape architects, designers, engineers, architects, developers, policy-makers, and others use SITES to align land development and management with innovative sustainable design.
SITES also partners with LEED to create complementary rating systems that you can use independently or in tandem. LEED applies to your project building and the site it is located on, and SITES applies to everything on your site, except your building (with a few exceptions).
WELL Building Standard
Focus areas: Relationship between sustainability and human health, primarily in new construction.
Property types: Primarily commercial new construction, but offers residential as well.
Benefits for homeowners: WELL buildings are healthier for you and your family than many other certifications.
Downsides: It can be time-consuming or prohibitively expensive to incorporate WELL standards into an older building.
Cost: $2,500 for registration + $0.16 per square foot of property.
The WELL Building Standard, founded by the International WELL Building Institute, focuses on building features that affect people’s health and well-being. Areas of concern include air, water, nourishment, light, movement, thermal comfort, sound, materials, mind, community, and innovation. The WELL Building Standard is the first standard to integrate human health and wellness into building certification.
WELL also partners with LEED to create a streamlined process for getting dual certification.
Passive House (Passivhaus)
Focus areas: Reducing energy use in buildings.
Property types: Commercial, residential, and public.
Benefits for homeowners: Significantly reduced energy bills and comfortable indoor temperatures year-round.
Downsides: Focuses entirely on energy use and is extremely rigid.
Cost: Determined by the examiner and varies widely depending on the square footage of the building.
The Passive House Institute (PHI) based in Germany developed this certification system. Buildings that are certified as a Passive House must meet strict energy usage requirements, focusing on high-level thermal insulation, stringent airtightness, and maximum energy gains from the sun. The result is a building that uses significantly less energy for heating and cooling than traditional buildings, often reducing the energy needed by up to 90%.
Final thoughts
There are hundreds of other certification programs that focus on specific aspects of a building, such as water management and light pollution. Some are also catered to specific regions. If you’re looking to certify your home, do your research and establish a budget for membership, applications, and certifications, as well as design, planning, and maintenance. Additionally, you can hire a 3rd-party to certify your home, although that may cost more.
Working towards a certified sustainable home is important and beneficial, but it can be cost-prohibitive. If you don’t have the budget for certification, read about a program’s requirements and try to incorporate them into your project; you don’t need to certify your home to make it more sustainable or even regenerative. No matter what you choose, incorporating sustainable practices into your lifestyle can help reduce your carbon footprint and contribute to a greener future.
[Note from editor: The “Mastermind Showcase” highlights companies and news from members of the GEM. Today’s showcase: JPAR.]
A full-service brokerage at a capped, transaction fee cost with over 3,500 agents across the U.S., JPAR Real Estate closed more than 22,000 transactions in 2020, with total sales volume topping $5.5 billion. Its franchise services launched in Fall 2018 and has since sold 50+ franchises, with 200+ realtors joining the team each month.
JPAR boasts an impressive leadership group around founder JP Piccinini that includes Mark Johnson (former executive for HomeServices SoCal & Tom Ferry International), Geoff Lewis (former RE/MAX President), and Justin Tracy (Former CEO of Kunversion).
What we like: Being one of the largest independents provides JPAR a front-row seat to adopting best-of-breed solutions, as is made evident by recent partnerships with Zavvie and Lone Wolf.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
The biggest banks generally aren’t known for competitive savings account yields. Even with interest rates higher than they’ve been in years, many big-bank savings accounts remain stuck in near-zero interest rate territory.
Citi® Accelerate Savings is a rare exception. While not quite at the top of the heap, its yield is well above the national average — competitive enough to qualify as a legitimate high-yield savings account. If you’re looking for a strong return on your money without leaving the stable, comforting embrace of an international financial powerhouse, it could be a perfect fit for you.
But before you run out to open an account, make sure Citi Accelerate Savings really is the best choice. Like every bank account, it has some notable shortcomings too.
What Is Citi Accelerate Savings?
Citi Accelerate Savings is a high-yield savings account from Citibank. It yields 4.05% APY on all balances and has no minimum balance to open or maintain. You do need to maintain a balance of at least $500 to avoid the $4.50 monthly maintenance fee.
Like most Citi deposit accounts, Citi Accelerate Savings is the savings part of a checking-savings account package. You must open an Accelerate Savings account alongside a corresponding Citi checking account. Citi Access Checking or Basic Checking are both no-frills checking account options with low, easy-to-waive monthly maintenance fees.
Eligibility is limited to residents of certain states — enter your ZIP code on the application page to see whether Accelerate Savings is available in your area.
What Sets Citi Accelerate Savings Apart?
Citi Accelerate Savings stands out for a few key reasons, not all positive:
Yield well above the national average. Citi Accelerate Savings yields 4.05% APY on all balances. That’s well above most other big-bank savings accounts and the national savings account average too.
No minimum balance to open. You can fund your new Citi Accelerate Savings account with any amount of cash.
Monthly maintenance fee applies on lower balances. Watch out for the $4.50 monthly maintenance fee assessed in any statement cycle your balance drops below $500.
Only available in certain states. Citi Accelerate Savings is available in most areas* but not all. Enter your ZIP code on the application page to find out if you’re eligible.
Key Features of Citi Accelerate Savings
Citi Accelerate Savings has all the hallmarks of your typical savings account, but the details vary a bit from what you might be used to. Familiarize yourself with its key features before moving ahead with your application.
Account Yield
Citi Accelerate Savings pays interest at a very competitive rate: 4.05% APY on all balances. There’s no minimum balance to earn interest, and every dollar in your account earns at the same rate.
Account Fees & Minimums
There’s no minimum balance to open this account. However, if your balance drops below $500 in a given statement cycle, you must pay a $4.50 maintenance fee for the period.
Savings Automation
Citi’s AutoSave feature makes it easy to automate deposits to your Accelerate Savings account. Choose weekly, biweekly, monthly, or some other frequency and take the human element out of building your nest egg.
Overdraft Protection
Citi’s optional overdraft protection plan is called Safety Check. If you enroll, you can use your Accelerate Savings account as a backup for an overdrawn Citi checking account (except Access Checking), pulling from the savings account as needed to cover overdrafts. Citi rounds each draw up to the nearest $100.
Mobile Features
Citi Accelerate Savings comes with a comprehensive mobile app with capabilities like:
Digital bill payments
Person-to-person transfers
Mobile check deposit
Rapid electronic transfers
Single-dashboard view of all active Citi accounts
Deposit Insurance
Citi Accelerate Savings comes with FDIC insurance on balances up to$250,000. In the unlikely event that Citibank fails, the federal government guarantees deposits up to this amount.
Pros & Cons
There’s a lot to like about Citi Accelerate Savings and a few things to dislike.
Excellent yield on all balances
No minimum balance to open
Excellent mobile app
Minimum balance to avoid the maintenance fee
Requires a linked Citi checking account
Not available in all markets
Pros
Citi Accelerate Savings’ advantages go beyond its competitive yield. It’s one of the more mobile-friendly accounts on the market and serves as a valuable backstop for checking overdrafts — a capability many online banks can’t match.
Excellent yield on all balances. Accelerate Savings doesn’t quite have the best yield of any savings account on the market, but it’s well above the national average and better than the vast majority of big-bank savings products.
No minimum balance to open. There’s no minimum balance to open an Accelerate Savings account, which makes it a realistic choice for savers just starting out.
Optional overdraft protection for your linked Citi checking account. Citi’s optional Safety Check feature enlists your Accelerate Savings account as a backup for overdrawn checking accounts. The only checking account excluded from the deal is Access Checking. If you anticipate overdrafting often, think twice about opening an Access Checking account as the checking portion of your package.
Robust mobile app. Citi’s mobile banking app is better than most. You can do just about anything with it that you can through the regular online dashboard (or in a Citi branch for that matter).
Deposit insurance up to $250,000. Rest assured that your money is safe in the very unlikely event that Citi goes under.
Cons
Citi Accelerate Savings has some inconvenient features and limitations.
Must keep at least $500 in the account to avoid the monthly fee. This is one of the few high-yield savings accounts that charges a monthly maintenance fee. Fortunately, it’s easy to avoid with a balance of $500 or more, but it’s not ideal for frugal savers.
Must open alongside a Citi checking account. You can’t open a Citi Accelerate Savings account by itself. You need to pair it with a Citi checking account, which may have its own monthly fee and waiver requirements.
Not available everywhere. Accelerate Savings is available in most areas* but not quite nationwide. Even if it seems like the perfect savings account for you, it might be out of reach unless and until you move.
How Citi Accelerate Savings Stacks Up
The Citi Accelerate Savings account compares favorably to most big-bank savings accounts. But before you apply, see how it compares to one of the best high-yield savings accounts around: the Marcus Online Savings account, backed by Citi competitor Goldman Sachs.
Citi Accelerate Savings
Marcus Online Savings
Yield
4.05% APY
4.15% APY
Minimum Balance
$0
$0
Maintenance Fee
$4.50 if your balance drops below $500, otherwise $0
$0
Linked Checking Account
Yes
No
Savings Automation
Yes
Yes
Overdraft Protection
Optional
No
Available Nationwide
Almost
Yes
Marcus Online Savings comes with fewer strings than Citi Accelerate Savings, which must be opened as part of a checking-savings package and has a monthly maintenance fee if your balance drops below $500. But Citi Accelerate Savings is a better fit if you want the security of overdraft protection.
Final Word
Citi Accelerate Savings is one of the best big-bank savings accounts on the market. Its yield is well above the national average (if not quite best in class) and it’s easy to waive the monthly maintenance fee with a $500 balance. Optional overdraft protection is a nice touch too, one missing from many online savings accounts.
This account does have some shortcomings though. First of all, it’s not available in all markets. The maintenance fee is a problem for people just starting out on their savings journeys. And you must open it as part of a checking-savings package.
All in all, there’s more to like than dislike about Citi Accelerate Savings. But it might not be right for you.
*The Citi® Accelerate Savings account is available to customers with a residential/home address (not mailing address) in AA, AE, AL, AK, AZ, AR, AS, CO, DE, GA, GU, HI, ID, IN, IA, KS, KY, LA, ME, MA, MI, MN, MP, MO, MS, MT, NE, NH, NM, NC, ND, OH, OK, OR, PA, PR, RI, SC, SD, TN, TX, UT, VI, VT, WA, WV, WI, WY, and select markets in Florida and Illinois.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
The Verdict
Our rating
Citi® Accelerate Savings
Citi Accelerate Savings stands head and shoulders above most other big-bank savings accounts. If you’re looking for a reliable savings account with a very competitive yield and full deposit insurance, it’s worth a close look. However, it has some important shortcomings and isn’t available in all areas, so it might not be the best option for you.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Banking
What Does ACH Stand For in Banking Terms?
The Automated Clearing House Network, or ACH, is how Americans send electronic funds transfers. Virtually every bank, credit union, and fintech company in the U.S. uses the ACH network. Find out how it works and how to use it to send and receive money.
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.
If you’re considering a move to Boise, Idaho, it’s important to weigh the pros and cons before making a decision. Known for its natural beauty, outdoor recreational opportunities, and growing urban scene, Boise offers a unique living experience. Whether you’re looking on Redfin to buy a home in Boise or rent an apartment, we will explore ten key aspects to help you determine whether living in Boise is the right place for you.
1. Outdoor recreation and scenic beauty
Boise is surrounded by stunning natural landscapes, including the Boise Foothills, the Boise River, and nearby mountains. The city is a haven for outdoor enthusiasts, offering opportunities for hiking, biking, skiing, fishing, and whitewater rafting. With its vast network of trails, parks, and open spaces, Boise provides easy access to nature and encourages an active lifestyle.
2. Tight-knit community
Boise has a strong sense of community, with friendly and welcoming residents. The city fosters a community spirit, and you’ll often find local events, farmers markets, and neighborhood gatherings that bring people together. The community involvement and friendly atmosphere contribute to a positive living experience.
3. Booming job market and economic growth
Boise has experienced significant economic growth in recent years, attracting a range of industries and job opportunities. The city is home to major employers in sectors such as technology, healthcare, education, and government. The booming job market and a lower-than-average unemployment rate of 3.6% compared to the national average of 6%, make Boise an attractive place for those seeking career prospects.
4. Affordable cost of living
Compared to many other cities in the United States, Boise offers a relatively affordable cost of living. The average cost of living in Boise is 7% higher than the national average. The median home price in Boise is $487K compared to the national average of $408k, and rental rates in Boise are $1,637 compared to the national average of $1,393. These prices and daily expenses are lower than in larger metropolitan areas such as Seattle, WA where the average home price is $835,000. This affordability allows residents to enjoy a high quality of life without breaking the bank.
5. Cultural and arts scene
Boise has a vibrant cultural and arts scene, with numerous galleries, theaters, and performance venues. The city is home to the Boise Philharmonic, the Boise Art Museum, and the Idaho Shakespeare Festival, which offer a range of cultural experiences throughout the year. You can immerse yourself in diverse arts and entertainment offerings, from live music performances to art exhibitions.
6. Scarce public transportation options
Boise’s public transportation system is still developing, and it may not be as comprehensive as in larger cities. While the Valley Regional Transit system provides bus services, the coverage and frequency may not meet the needs of all residents. Having a private vehicle is often necessary for convenient transportation within the city and exploring the surrounding areas.
7. Extreme weather conditions
Boise experiences a wide range of weather conditions throughout the year. Winters can be cold, with occasional snowfall, while summers can be hot and dry. The temperature variations may not be ideal for everyone, and individuals who prefer milder climates may find the extremes challenging to adjust to.
8. Increasing population growth
Boise has been experiencing rapid population growth in recent years, as more people discover the city’s appeal. Boise County’s population grew 15.5% from the 7,005 people who lived there in 2010. For comparison, the population in the US grew 7.3% during that period.While this growth brings economic benefits and a thriving community, it also poses challenges such as increased traffic congestion, higher housing demand, and potential strains on infrastructure. As the city continues to grow, residents may need to adapt to the changing dynamics of a growing population.
9. Limited major metropolitan amenities
While Boise offers a range of amenities and services, it may not have the same options and depth as larger metropolitan areas. Some individuals may miss certain big-city amenities, such as major sports teams, an array of high-end shopping options, or a vibrant cultural scene. However, Boise’s charm lies in its smaller community feel and access to outdoor recreation.
10. Limited air travel options
Boise’s airport, the Boise Airport (BOI), serves the city and the surrounding region, but it may have limited options for air travel compared to major hub airports in larger cities. While the airport offers connections to various destinations, the number of direct flights and airlines operating at the airport is limited. This can potentially result in fewer options and higher prices for certain routes, as well as longer travel times for international or less common destinations. If you frequently travel by air or require extensive connectivity, the limitations of air travel options in Boise may be a consideration.
Deciding whether Boise is a good place to live requires careful consideration of its pros and cons. By evaluating these factors against your personal preferences, lifestyle, and priorities, you can make an informed decision about calling Boise your next home.
It’s been a good week for borrowers as mortgage rates have improved slightly thanks to easing political tensions in Italy. Rates are expected to rise over the coming weeks and months so if you’re looking to buy or refinance, you should do it soon. Read on for more details.
Where are mortgage rates going?
Mortgage fall in Freddie Mac PMMS
It’s good news for anyone looking to buy a home or refinance their current mortgage as mortgage rates fell for the second consecutive week in this week’s Freddie Mac Primary Mortgage Market Survey. This now puts the average rate on a 30-year fixed rate at a 7-week low. Here are the numbers:
The average rate on a 30-year fixed rate mortgage fell two basis points down to 4.54% (0.5 points)
The average rate on a 15-year fixed rate mortgage slid five basis points to 4.01% (0.4 points)
The average rate on a 5/1-year adjustable rate mortgage dropped six basis points to 3.74% (0.4 points)
Here is what the Economic and Housing Research Group at Freddie Mac had to say about rates this week:
“Mortgage rates dipped for the second consecutive week.
Homebuyers have taken advantage of the recent moderation in rates, which led to a 4 percent increase in purchase applications last week.
Although demand has remained steadfast against the backdrop of this year’s higher borrowing costs, it’s important to note that the growth rate of purchase loan balances has moderated so far this year – and particularly since March. This slowdown indicates that buyers are having difficulty stretching to keep up with the pace of home-price growth.
While the very healthy job market continues to fuel interest in buying a home, the supply shortages in most markets are pushing prices higher and currently keeping sales at a standstill. Listings for new and existing homes need to increase in the months ahead to moderate price growth and reignite sales activity.”
Rate/Float Recommendation
Lock before rates rise
Mortgage rates are down to levels that haven’t been seen for almost two months. This is clearly great news for anyone who is about to buy a new home or refinance their current mortgage. However, mortgage rates are expected to tick back up in the coming weeks and months so you’ll want to take action soon to avoid the risk of locking in a higher rate.
Learn what you can do to get the best interest rate possible.
Today’s economic data:
Jobless Claims
Applications filed for U.S. unemployment benefits fell 1,000 from the prior week putting them at 222,000.
Notable events this week:
Monday:
Factory Orders
Tuesday:
PMI Services Index
ISM Non-Mfg Index
JOLTS
Wednesday:
International Trade
Productivity and Costs
EIA Petroleum Status Report
Thursday:
Jobless Claims
Friday:
Wholesale Trade
*Terms and conditions apply.
Carter Wessman
Carter Wessman is originally from the charming town of Norfolk, Massachusetts. When he isn’t busy writing about mortgage related topics, you can find him playing table tennis, or jamming on his bass guitar.
Today’s Millennials face challenges unique to their generation. With the cost of education on the rise, setting money aside for the future can be challenging.
That’s where Unifimoney can help. Combining banking and investing, you’ll get the all-in-one platform you need to save, as well as spend and invest with a unique combination of automation and easy access to alternative assets including cryptocurrencies and precious metals.
Ben Soppitt founded Unifimoney to make it easier for Millennials to manage their money and protect their long-term wealth.
What’s Ahead:
Why Unifimoney?
Based in San Francisco, Unifimoney serves the banking needs of young professionals in the United States. From high-yield checking, a robust multi-asset investment, a range of partner services including insurance and loans, and a credit card (launching in August!) – you can really manage most, if not all of your money in one app.
Unifmoney also has auto-transfer rules that you can set up to automatically move money from your old bank to your Unifimoney account on a schedule you determine.
But where Unifimoney really shines through is in its investment platform and automation features. The app includes both passive (robo) investing and active commission-free trading, 37 cryptocurrencies with more being added regularly, and even precious metals; gold, silver, or platinum can be delivered. The robo product builds a portfolio that fits your own goals and risk tolerance level.
Meet Unifimoney CEO – Ben Soppitt
Ben Soppitt has a long history in fintech leadership, including roles with Samsung Pay, Fitbit Pay, and Visa. He founded Unifimoney in 2019 and continues to serve as its CEO.
In addition to his work with Unifimoney, Ben is a member of the Forbes Business Council, an invitation-only organization for small and midsized business owners. He also performed a fellowship at On Deck, an accelerator that helps top talent accelerate their careers.
Recently, we spoke with Ben about his vision for Unifimoney and where he sees the field of finance going in the coming years. He also had a few great insights about personal finance for the Millennial generation.
Money Under 30’s interview with Ben Soppitt
What drove you to start Unifimoney? Do share any backstory about naming your company Unifimoney.
I had been in the financial services business for over two decades and witnessed the rapid increase in consumer Fintech companies launching bringing innovation, choice, and value to consumers. But I noticed a few things that the industry was not solving for and the wasted value to consumers was massive – over $20 trillion, money that could be going back to consumers and the wider economy.
These included ignoring the needs of mass affluent consumers including young professionals. These customers are in a very challenging position – they are high-earning but also high-debt from an extended period in education. They often live in high-tax and high-price areas like major cities. They have busy, stressful, and demanding jobs, and they have a lot going on in their lives. Managing money well is rarely high on their list of things to do, and it’s decisions that are made or more often not made at that time that can have an impact many years later – the opportunity cost of not managing your money is paid in the future and not today.
The other thing I noticed was that most Fintechs were solving for very specific and discrete parts of the financial ecosystem – active investing, Robo investing, cryptocurrencies trading, mortgages, loans, banking, etc., ironically with so many apps it actually makes it harder to manage your money than easier and that work falls on the consumer. Humans are not, on the whole, prepared to do hard, manual, repetitive work on a sustained basis, especially when the payoff may be decades in the future, so we put it off and that’s what managing your money can require. The result is that almost all mass affluent consumers suffer from three sins in managing their money:
Having too much money held in cash at a Big Brand Bank that pays little or no interest.
Having a credit card that does not maximize your return on spend.
Not dollar-cost averaging (in fact, less than 30% of Millennials are investing in the stock market at all).
If these were solved for the entire Millennial generation, it would create through their working lives and the power of compound interest over $20 trillion dollars of value by the time they retire. Solving for this is what we want to do at Unifimoney, and we do it through automation and product design so that our customers are automatically and by default solving for the three sins of personal finance and ensuring their money is working as hard for them as they do to earn it in the first place.
What sets Unifimoney apart from other investing apps?
We are an all-in-one app where you can manage most if not all of your investing and money management needs. We use automation to remove the manual work involved in managing money on a day-to-day basis. We have a comprehensive investment platform including Robo investing, Self Managed Commission Free trading, over 30 cryptocurrencies, and precious metals. We support fractional investing in equities and ETFs, crypto, and precious metals so any customer can get going with just a few dollars. We intend to progressively add more alternative investment assets over time like collectibles.
We have a full banking service – a hybrid high-interest checking account and are launching a credit card soon. This will be the only credit card in the world that pays rewards as Bitcoin, gold, or equities.
More important than the features and product functions, though, is that we enable our customers to truly automate their money. You can set rules to transfers funds automatically from your old banking institution into Unifimoney – move your money not your bank, we recognize that is a hassle. You can auto-invest any amount (the minimum is $25) each month into your Robo and trade in crypto, metals, and equities to the maximum in your account.
Deposit interest and credit card cash back are automatically rolled up and deposited into your Robo fund – unless gold or Bitcoin is selected for the credit card (this can be changed each billing cycle). We want to make saving and investing as easy and effortless as paying for an Uber.
You’ve shared that Unifimoney’s San Francisco-based team speaks 7 languages; tell us more!
We are a fully distributed team with both U.S. and international team members. At the last count, we can collectively speak seven languages. The Founders Ben and Ed are British and British/Australian respectively but both living in San Francisco. Whilst the U.S. is in many respects the leading Fintech market in the world, there are learnings and experiences from other markets that help inform our product design. Credit Cards, for example, is a very commoditized business in the U.S. – with almost no innovation in 30 years. Other markets in Asia and Europe are doing far more interesting things with Credit Card proposition design.
What advice do you have for a Gen Z and/or Millennial who hasn’t started investing at all yet but is interested in learning?
A few innovations have made the path to investing very easy, low cost and low risk. Fractional investing means you can buy into company stocks (or crypto or gold) for just a few dollars, you are buying a fraction of a share not the whole share. This reduces the barriers to entry considerably. Commission-free trading likewise makes it low cost to trade. Robo platforms can help create a portfolio based on your own risk profile, and auto invest means that you can set a schedule to invest even a very small amount of money regularly.
The average age to start saving for retirement is 32 in the U.S. – meaning for most, they have lost a decade of compound growth. Most people understand conceptually how compound growth but it’s hard to really imagine its power. We all almost all forget or ignore that compounding increases both our good decisions and our bad. Losing the first 10 years of your 30-40 year investing potential is a very hard blow indeed – these are the most important years – the early ones with the most compounding to benefit from.
When looking for a bank, what advice do you give Gen Z and Millennials? What features should they prioritize?
Well, we are a little biased to be fair.
Some things to consider we would suggest:
Whose interests are the banks really being run for? Customers vs Shareholders
The values of the institution should be considered.
How the institution is going to actually help you increase your wealth.
Try and actively think beyond the marketing – the top 10 Big Brand Banks spend over $15 billion a year on marketing – they are influencing your judgment, whether you realize it or not.
Be aggressively rational – e.g., metals credit cards are irrational and deflect focus from what you should really be looking at and assessing.
Unifimoney offers an all-in-one financial management solution. Do you find many of your members use it for all their banking needs, including checking and savings?
We are a complex answer to a complex problem – how to manage your money better without effort so it takes time for customers to really understand what we do plus we are still building and developing the platform.
We don’t expect our customers to give up their old bank and move to us immediately. It’s why we have created ways to automate funds flow from your old bank to Unifimoney. You don’t have to move bank, just the money.
We see two categories of customers so far – those who create an account, fund a few thousand dollars and then spend time learning about the services and increasing their funding over time. The second category is moving over larger portfolios of $100-500K either into the Robo or Self Managed platform. We hope our customers will develop and evolve alongside us, and we actively seek their feedback and incorporate that into our design roadmap.
Everyone is talking about cryptocurrency. How do you see digital currencies changing the financial landscape over the next decade?
It is clear we believe that blockchain technology and cryptocurrencies have vast future potential in many dimensions of life. Without any doubt, cryptocurrencies are a highly volatile investment choice, and we recommend that they are treated as such.
There are a few philosophies we believe largely hold true in investing for most people most of the time:
Spend less than you make.
Invest what you can.
Maintain a cash cushion appropriate to your needs.
The 85:15 ratio – 85% of your investments should be in a highly diversified portfolio matching your individual risk profile. 5-15% can be used for more high risk/high reward investments if you feel compelled to actively trade.
Dollar-cost average to manage market timing risk.
Cryptocurrencies and precious metals and indeed all forms of alternative asset we think have a role in diversification and the high risk 5-15% part of your active investing if that is of interest to you.
Equally important alternative assets – be they wine, sports memorabilia, collectibles, cryptocurrencies, gold coins, etc., tend to be much more interesting and engaging than ETFs for example.
They are a great way to get people interested in engaging in their wealth journey, and that is an important component we think to consider as well.
You did a fellowship with an accelerator called On Deck. What was that experience like? How has it helped you as you lead your company?
I did – it was early on in our journey, and it’s a community of Founders from all industries and levels of experience and career change. Coming out of a 20+ year corporate career, it was incredibly powerful and energizing to be around such a diverse group of people, all embarking on similar journeys to start new projects and companies that they believe so strongly in. I am still an active member of the online community and try and participate and support the community by giving back whatever I can. I have gravitated to more Fintech founders, which is natural, but I recently worked with a Founder from On Deck working on an education startup – teaching kids mechanical engineering skills starting with 3D Printing tech. My kids and I were part of his pilot.
As a business leader in a competitive market, what advice do you have for aspiring entrepreneurs?
I think there is a lot more randomness and luck involved that is generally talked about. Accepting that is very helpful. The most powerful force, though, I believe is serendipity “the occurrence and development of events by chance in a happy or beneficial way”.
As the old saying goes, the harder I work, the luckier I am. I work hard at having as many interactions with as wide a group of people as I can, and I find that the most powerful relationships often come from the most unlikely places and people, and they compound over time. Like money – smaller positive changes and actions done frequently compound to be very powerful. Same with relationships and people.
What is the biggest challenge you’ve faced in your career, and what did you learn from it?
I have been incredibly fortunate to have had the opportunity to travel and work in many countries during my career, including the UK, Kazakhstan, Indonesia, Singapore, and now the U.S. Very diverse environments and cultures, but I have often found the biggest challenge is always when people’s values and goals are not aligned. It’s hard to achieve that in a big corporate environment at the best of times, and some companies do it better than others. But when people are aligned, there is almost nothing that cannot be achieved.
Who in your life has been the most instrumental in teaching you about money management?
My Father who was very good with money, very disciplined, and thought long term – and my Mother who was truly awful with it. My parents divorced at an early age, so I saw the two paths evolve over time and in parallel to their natural conclusions. A hard and long lesson to be sure.
I have seen the long-term effects on physical and mental health and quality of life that money stress causes, and I will do anything I can to help as many people as possible avoid that fate.
What’s the best advice you’ve received (not necessarily money-related) that has shaped how you lead your life?
I am still learning – when I have reached a conclusion I will most assuredly let you know.
What’s your top personal finance tip?
Spend less than you earn, and invest the rest.
What is the financial book/website/podcast that has most influenced you?
I am really diverse in my personal finance media in part because so few of them can agree on really core things, so I try and read/watch as much as I can, and it’s a never-ending quest of learning, e.g. active vs passive, growth vs value, crypto vs gold, etc., but I take it all with a pinch of salt – I am personally very much following the boring but systematic approach in my investing whilst dipping into new things to learn and for fun – I recently invested in gold for the first time (via Unifimoney) and also sports collectibles via a third-party app just to learn.
The problem with a lot of financial media is that it’s interesting/informative, sometimes amusing, but ultimately fails because most people don’t act on it. The fact that less than 30% of Millennials are invested in the stock market is a shocking statistic to me, even lower below aged 30.
We as an industry collectively need to solve for the wasted trillions that are caused by poor financial management, and we are not there yet.
What piece of wisdom would you give your 20-year-old self about managing money?
Spend less than you earn, and invest the rest. I made my first equity investment at age 14 during Maggie Thatcher’s privatization of the UK’s government-owned utilities. I think it was in British Gas. I doubled my money.
I also placed my first bet around the same time, I think it was on the Grand National Horse race – held once a year in the UK. I lost all my money. That was a great lesson.
Summary
Unifimoney is a full-service financial platform offering all the tools necessary to efficiently manage your money. You’ll not only have the support you need to build a strong portfolio, but you’ll also learn positive financial habits that will carry you through the rest of your life.