mobile Archives - Hanover Mortgages

November 26, 2021

CIT Bank Review 2021

When it comes to banking, most of us are just looking for something convenient and free … but it’s that much better when your checking account can actually help you earn money, too. For that, CIT Bank is your answer.

If you’re willing to move to an online banking system — that is, one where your account is entirely online and you don’t have access to a brick-and-mortar banking location — CIT Bank offers both checking and savings accounts with no monthly fees and high interest earnings potential. There is a minimum opening deposit of $100, though it’s pretty reasonable given the bank’s high rates.

Although foregoing the in-person franchise can be a little daunting, CIT Bank makes it that much easier by offering up to $30 in third-party ATM fee reimbursement per month, and you’ll never be assessed an ATM fee on their end. However, if you’re looking for a bank that also offers small business accounts, you’ll want to keep looking (try these business checking accounts); CIT doesn’t have business checking or savings accounts available.

Here’s what we love about each of CIT Bank’s online deposit accounts and what we think could use some work.

CIT Bank Checking Account

CIT Bank has one checking account option which has a lot of perks, including no monthly fees and the ability to connect the account with the high-yield savings account. CIT does still charge overdraft fees but they can be avoided if you sign up for the protection plan.

CIT Bank eChecking Account

Best for Digitally-Savvy Users

Key Features

Interest earning
Connects with high-yield savings
Charges overdraft fees

4 out of 5 Overall

CIT Bank combines the best of both possible worlds when it comes to checking: an account with no monthly fees and the ability to earn interest. Their eChecking account earns up to 0.25% APY on balances with $25,000 or more, and 0.10% APY on balances less than that. (That’s better than the average savings account interest of 0.03% APY, per the FDIC.)

CIT Bank eChecking Account

APY

Up to 0.25%

Monthly fees

ATM access

None, but reimbursement up to $15

Minimum starting balance

$100

The checking account requires a minimum opening deposit of $100, and certain fees can be assessed under specific circumstances. For instance, if you make an outgoing wire transfer and carry an average daily balance of less than $25,000, it will cost $10. CIT Bank’s insufficient funds fee is $30, and no daily limits are advertised.

Still, these fees are relatively easy to avoid, especially given CIT Bank’s free overdraft protection option. They also avoid charging their own ATM fees when you withdraw money, and you can receive up to $30 per month in third-party ATM fee reimbursements.

When you sign up, CIT Bank will send you a complimentary debit card with EMV chip technology, but if you’re looking to use physical checks, keep moving. The mobile app allows you to easily deposit checks made out to you, but doesn’t allow you to write a check from this account.

Finally, we love the way the eChecking account connects with CIT Bank’s new high-yield savings account, Savings Connect Account, to maximize your savings. We suggest you take a look at signing up for both simultaneously.

CIT Bank Savings Accounts

CIT Bank provides customers with three savings account options:

Savings Builder
Money Market
Savings Connect

All carry a minimum opening deposit between $100 to $200, but none assess monthly fees.

CIT Bank Savings Builder

Best for Monthly Savers

Key Features

No monthly fee
Daily compounding interest
Up to .40% APY

3.5 out of 5 Overall

The Savings Builder account allows account holders to earn up to .40% APY depending on their average daily balance and/or monthly deposit behavior; if you keep a balance of at least $25,000 or make at least one monthly deposit of $100 or more, you’ll earn the .40% APY maximum. Interest compounds daily to maximize earning potential, and deposits and transfers can be made through the mobile app.

CIT Bank Savings Builder

APY

Up to 0.4%

Monthly fees

ATM access

None

Minimum starting balance

$100

The Savings Builder account is a decent option for a high-yield savings account, boasting rates over 6X the national average. If you jump through the tiered interest hoops, then you can walk away with 0.40% APY, but if you’re looking to just put your money in and sit, you’ll most likely receive the lower-tiered rate of 0.28% APY (unless your balance is more than $25,000).

Basically, if you need motivation to save money monthly for a goal like a house or college, the reward of earning higher interest with a Savings Builder account might be just the trick. In fact, right now, the Savings Builder account offers the higher-tiered interest as a special introductory rate for your first period regardless of balance or savings. So if you’re thinking this is the right savings account for you, you’re at least guaranteed 0.40% for one cycle.

Overall, however, we think CIT Bank’s other savings accounts are worth taking a look at for slightly higher APYs and a little less fuss.

CIT Bank Money Market Account

Best for No Fuss Saving

Key Features

No monthly service fee
Up 0.45% APY
Scheduled bill pay feature

4 out of 5 Overall

The Money Market account earns 0.45% APY without any fees regardless of account balance or deposits, and its interest, like the Savings Builder account, is also compounded daily.

CIT Bank Money Market Account

APY

0.45%

Monthly fees

ATM access

None

Minimum starting balance

$100

Coming in at 0.45% APY, CIT Bank’s Money Market account is definitely a strong contender among online banks’ savings options. Unlike the Savings Builder account or Savings Connect account, Money Market has no hoops to jump through. You just put your money in and receive the 0.45% APY. Combined with no monthly fees, we love the ease of earning it offers.

Unlike some other money market accounts, CIT Bank’s Money Market account is limited to electronic transfers only. You can arrange a direct deposit, bill pay, and check cashing on its great mobile app, but there’s no corresponding debit card or checks.

Like the Savings Builder account, the Money Market account is also limited to six transactions a statement cycle with a $10 for each additional excessive transaction. But we think for most, these little inconveniences are worth the high annual percentage yield.

CIT Bank’s Savings Connect account has no monthly fees and a solid APY. You have to open a Savings Connect account and an eChecking account and CIT Bank will link them. If you already have an eChecking account, then CIT Bank will link them automatically.

CIT Bank Savings Connect Account

Best for eChecking Users

Key Features

No monthly service fee
Up 0.50% APY
Linked to eChecking account

5 out of 5 Overall

CIT Bank’s new Savings Connect account allows you to connect this savings account with your CIT Bank checking account—again, with no monthly service fee. To qualify, you must open a Savings Connect account and an eChecking account and deposit $100 in each. Once connected, Savings Connect account holders can earn up to 0.50% APY with a qualifying monthly deposit of $200 to their checking account.

CIT Bank Savings Connect Account

APY

Up to 0.50%

Monthly fees

ATM access

None, but reimbursement up to $30

Minimum starting balance

$100

From there, to earn the highest tiered APY, you simply have to set up an automatic deposit of $200 or more into your linked checking account from your Savings Connect account. This monthly deposit locks in 0.50% APY for the cycle. If you don’t meet this requirement, you’ll still bring home 0.42% APY for simply having the linked accounts, which is a more than respectable APY.

Besides a good APY, a linked Savings Connect account gets you access to a debit card and overdraft protection. For the debit card, the same rules apply as before with no CIT Bank ATM fees and other ATM fee reimbursements up to $30 a month.

Some people might find opening two accounts a bit annoying, but the high APY makes it a great option for most who are looking for a fully online banking experience.

Other CIT Bank Products

While we mostly come to CIT Bank for the savings and checking accounts, it doesn’t stop there. Check out the other services available from CIT Bank that might fit your needs below.

Certificates of Deposit (CDs)

CIT Bank offers three different CDs for new customers seeking to hit their savings goals:

Term CDs
No Penalty, 11 Month CDs
Jumbo CDs

CIT Bank’s CDs work pretty much like other standard CDs with varying rates and lengths. The Term CDs offer between 0.30% to 0.50% APYs depending on the CDs term. There’s no maintenance or opening fee, but it does have a $1000 minimum.

The No Penalty 11 Month CDs also have a $1,000 minimum but can be accessed early with no penalty—that flexibility, however, costs you a little APY with rates of 0.30% APY.

With a $100,000 minimum, the Jumbo CDs are definitely channeling a specific type of customer. These term lengths are longer—between 2 to 5 years—and have 0.40% – 0.50% APYs depending on the length.

It is worth just mentioning that previous customers do continue to have access to their RampUp CDs, but they’re not offered to new customers.

So do we believe CIT Bank CDs are worth it? CIT Bank’s CDs are a solid option for CDs; however, there are CDs on the market with better rates and lower minimums, so we’ll probably stick to CIT Bank’s savings and checking accounts.

Pro Tip

Check out our current list of bank promotions for a chance to gain a monetary bonus when signing up for a new bank account.

Home Loans

CIT Bank offers home loans with relationship pricing options:

.10% with 10% of the loan amount in new deposits
.20% with 25% of the loan amount in new deposits.

Plus, you can get $525 cash back deposited into your CIT Bank account after you close on your new home loan with CIT Bank.

CIT Bank Custodial Accounts

If you’re looking to grow wealth for a minor, CIT Bank can help you open a Custodial Account. You can set up most of the savings accounts in the minor’s name for them to gain control of at 18. With some federal tax benefits and no maximum limit, it makes a great place to save for the future.

Small Business Banking

CIT Bank focuses on personal accounts and doesn’t offer small business checking and savings accounts. They do have some small business financing options, specifically focusing on Equipment, Working Capital, or Franchise financing. The terms vary in length and rates, but all can be funded in as fast as 1 day.

CIT Bank Mobile App

Like most online banking options, CIT Bank’s mobile app provides digital solutions to help its members access and manage their funds from the convenience of their smartphones. Its mobile apps are well received, with ratings of 4.2 stars on Google Play and 4.6 stars on the Apple App Store.

The apps allow users to make transfers between their own accounts (and to others using third-party platforms like Zelle and Samsung or Apple Pay), as well as to make mobile check deposits using the onboard smartphone camera.

Pros and Cons of CIT Bank

So what’s the breakdown of CIT Bank overall? Below, we’ve laid out the pros and cons of CIT Bank to help you streamline your decision.

Pros

Free eChecking account earns interest at a rate higher than the average savings account.
No monthly fees on any of its deposit accounts.
Free overdraft protection.
Competitive APYs.
Low minimum deposit requirements.
Refunds ATM fees up to a certain amount.

Cons

Insufficient funds fee of $30 per transaction item.
No physical locations and no ATMs for the actual service.
No small business banking option.

Frequently Asked Questions (FAQs) About CIT Bank

Still have a few questions? Below we’ve tracked down the answer to the most common questions people ask about CIT Bank.

Is CIT Bank FDIC Insured?

Absolutely. All CIT Bank savings and checking accounts are FDIC insured against bank failure and theft. You should feel safe and secure using CIT Bank, knowing it’s backed by the FDIC.

Does CIT Bank Offer Loans?

CIT Bank does offer home loans and small business financing with relationship pricing mortgages and competitive rates.

Who Owns CIT Bank?

CIT Bank is owned by the CIT Group Inc, a North American financial holding company.

Jamie Cattanach and Whitney Hansen are contributors to The Penny Hoarder. Both are experienced writers in personal finance, banking and investing.

Source: thepennyhoarder.com

November 26, 2021

[Update] Cheese Checking Account Review: No SSN Required, 0.3-3% APY Savings, Debit Card Rewards

Update 11/25/21: Existing customers can get a $100 bonus when they spend $1,000 – $3,000 or a $300 bonus when they spend $3,000+ between 11/1/21 – 11/30/21. Maximum of $100,000 in prizes and first come first served. Hat tip to Dheeraj

Update 9/30/21: You can also get $20 from Swagbucks for signing up and depositing $10. Hat tip to reader Davis

Update 7/25/21: Android now available. Also, no SSN applications are now available: international students and immigrants can apply with their U.S. address, passports, and valid Visa. Updated below.

Update: This review has been revamped and reposted on 5/13/21. Originally posted on 1/6/2020. These have been written by Evan Mullen. See his prior posts here.

Cheese Checking

Cheese is targeted for immigrants and Asian Americans, but the account actually offers several competitive banking features. Here are the major highlights of the account:

No SSN required to open account; International students and immigrants can apply with their U.S. address, passports, and valid Visa.
FDIC-insured up to $250,000
No Fees
Paycheck up to 2 days early
Cashback debit card
Interest checking

They are also currently donating $10 for every new user until June 10th, up to $90,000.

Cashback Debit Card

There is a base 0.25% cashback rate on the debit card. They also have higher cashback offers from Dosh, and some additional exclusive cashback offers which they plan to continue to grow. Here are the current exclusive offers:

5% on phone bills (AT&T, T-Mobile, Sprint, Verizon, Mint Mobile, Cricket)
1% on pay later services (Klarna, Affirm, Afterpay)
5% at McDonald’s
2% at Target
2% at Uber Eats
2% at Instacart
2% at Wendy’s
5% at Asian Lifestyle: Chowbus
3% at Weee!
3% at Yamibuy
2% at Fantuan
2% at HungryPanda
2% at Doordash
2% at 99 Ranch
2% at H Mart
2% at MINISO

There is a $25 minimum cashback redemption and a $10 daily maximum for the 0.25% and exclusive offers. (Dosh maximums are separate.)

Interest Checking

The basic APY is 0.3%. If you are referred, you and the person who referred you will both receive a boost to 3% APY for 30 days. The referrer stacks on another 30 days to the 3% boost for each additional referral. The 0.3% APY has no cap, but the 3% APY has a monthly cap of $25. So if you have the 3% boost for the month, anything over about $10,000 would only earn 0.3% APY.

Final Thoughts

Though targeted for immigrants and Asian Americans, this account could also be very useful to international students and people with poor or no credit history. Even if you don’t fall into any of these categories, the account still has some unique aspects. The current features that stand out the most for me are the 5% cashback categories and the 1% on pay later services. It will be interesting to see what other exclusive offers get added in the future.

Source: doctorofcredit.com

November 25, 2021

James Glassman’s 10 Stock Market Picks for 2022

Last December, after beating the S&P 500 index five years in a row, I wrote, “This kind of streak isn’t supposed to happen, and readers should be warned that there’s no guarantee it will continue.”

Well, it’s over. My annual selections for 2021 performed just fine, with an average return of 17.4%, but the S&P did much better, gaining 35.8%. (Returns and data throughout the story are through Nov. 5.)

Since 1993, I have offered a list of 10 stocks for the year ahead. Nine are culled from the choices of experts I trust, and I include one of my own. For 2021, I’m happy to say, my pick was the biggest winner: ONEOK (OKE), the 115-year-old natural gas pipeline company, which benefited from the rise in petroleum prices and was up 139.9%.

I’ll get to my choice for 2022 at the end. Let’s start with one from the Value Line Investment Survey, a font of succinct research that has a strong forecasting record as well. My strategy is to pick from stocks that Value Line rates tops (“1”) for both timeliness and safety. That list right now is short: nine companies, including obvious ones like Apple (AAPL) and Visa (V).

The outlier is T. Rowe Price Group (TROW), the Baltimore-based asset manager, whose earnings have risen each year since 2009 despite the growing popularity of low-cost index funds. Value Line notes that “shares have staged a dramatic advance over the past year. However, our projections suggest … worthwhile appreciation potential for the next 3 to 5 years.”

Parnassus Endeavor (PARWX), a socially responsible fund – one that invests with an eye toward environmental, social and governance (ESG) measures, has returned a sparkling annual average of 18.3% over the past 10 years. In 2021, Jerome Dodson stepped back from managing Endeavor and other Parnassus funds, but he’s still a guiding force at the firm he founded 35 years ago. My picks from the portfolio for 2019 and 2020 were microchip companies that scored average gains of nearly 100%.

For 2022, I like PepsiCo (PEP), which Billy Hwan, the fund’s new solo manager, acquired for the first time in July. In addition to its soft drinks, the company has such respected brands as Lay’s, Quaker and Gatorade. Revenues have risen consistently, and PepsiCo may be able to benefit from general inflation with aggressive price increases.

Another big winner in 2021 came from Dan Abramowitz, of Hillson Financial Management in Rockville, Maryland, who is my go-to expert in smaller companies. His choice was IEC Electronics, which was purchased by Creation Technologies in October for 53% more than the stock’s price when I put it on the list, noting, “IEC is also a potential takeover target.”

For 2022, Dan recommends DXC Technology (DXC), a midsize information technology company based in the suburbs of Washington, D.C. It is in the midst of a turnaround, Dan writes, “yet we are still in the early innings here.” Profits are improving, but the stock “is valued at under 10 times current fiscal year earnings.”

A few months ago, I recommended AB Small Cap Growth (QUASX), a fund that has notched a sensational 29.8% annualized return over the past five years. The fund has been adding to holdings of Louisiana-based LHC Group (LHCG), a provider of post-acute care, including home health and hospice services, in more than 700 locations. The stock appears well priced after setbacks from hurricanes and because healthcare workers were forced to quarantine due to COVID-19. As the population ages, healthcare is a growth industry.

Fidelity Advisor Growth Opportunities (FAGAX) is red-hot, ranking in the top 3% of funds in its category for five-year returns. The problem is that it carries a whopping 1.82% expense ratio and is sold mostly through advisers. Still, you can scan its portfolio for ideas. Most of the fund’s holdings are tech stocks, but the only new purchase for 2021 among its top 25 holdings was Freeport-McMoRan (FCX), the minerals (copper, gold, silver) and oil and gas producer. The stock has doubled over the past year, but its price-earnings ratio, based on analysts’ consensus projections for 2022, is just 11.

A disappointment in 2021 was Upland Software (UPLD), down 47%. It was the choice of Terry Tillman, a software analyst with Truist Securities whose previous selections on my annual list had beaten the S&P 500 index for an incredible nine years in a row. Tillman recently initiated coverage on EngageSmart (ESMT) with a Buy rating. The firm, which helps healthcare professionals manage their practices, went public only in September, but it already has a market value of $5 billion, and Tillman sees the price going much higher.

It has not been a good year for China’s big companies, which China’s government apparently thinks have become big enough to threaten the Communist Party. As a result, my 2021 list’s worst performer was Alibaba Group Holding (BABA), the e-commerce giant, with shares falling by nearly half.

Still, if you have a stomach for risk, Chinese stocks present remarkable value these days. Matthews China (MCHFX), my favorite Asian stock fund, has held on to Tencent Holdings (TCEHY), which is down by about 40% from its February peak. Tencent, with a market cap of $576 billion, operates worldwide and offers social media, music, mobile games, payment services and more.

Last year, I turned for the first time to Schwab Global Real Estate (SWASX) and was pleased with the 21% return from its choice, Singapore-based UOL Group (UOLGY), with an office, residential and hotel portfolio. The fund’s third-largest holding is Public Storage (PSTG), owner of 2,500 facilities in 38 states. Is there a better business? Every year, I get an e-mail notice telling me my storage-unit rental has risen in price, and what am I going to do about it? Moving my stuff out is a horrifying thought. I have always wanted to own this stock. It is expensive, but waiting may make it more so.

Over the years, the assets of Berkshire Hathaway (BRK.B), Warren Buffett’s holding company, have become more and more diversified. At last report, the company owned 40 publicly traded stocks. Berkshire Hathaway’s largest holding by far is Apple, at about $135 billion. Guess what’s second? Bank of America (BAC), at $49 billion. I am a longtime fan and shareholder of BofA as well, and it looks especially good at a time when interest rates are rising.

My contrarian bias paid off last year when I shook off my disastrous 2019 choice of Diamond Offshore Drilling (it went bankrupt) and scored a double with ONEOK. Searching for value again, I have arrived at Starbucks (SBUX), which took a big (and to my mind, unwarranted) hit over the summer when the company warned of a slower recovery in China. So I’m taking advantage of skittish investors and recommending Starbucks, one of the world’s best-run companies, growing steadily with 33,000 outlets worldwide.

I’ll end with my usual warnings. These 10 stocks vary by size and industry, but they are not meant to compose a diversified portfolio. I expect they will beat the market in the coming 12 months, but I do not advise holding stocks for less than five years. Buy and hold works! Finally, these are my recommendations, but consider them suggestions for your own study and decision-making. No guarantees.

Source: kiplinger.com

November 24, 2021

Ando Money Lets You Fight Climate Change â And Get Paid Two Days Early

The United Nations calls climate change “the defining crisis of our time.” In a culture obsessed with instant gratification — and with world leaders caught up in the politics of it all — the rest of us can be left feeling helpless about it.

What exactly can we do to have an impact? Stick expensive solar panels on the roof? Switch to a plant-based diet? Take shorter showers?

Of course, all these endeavors are worthwhile, but there’s a surprisingly simple move you can make to have a big impact on fighting climate change: changing where you bank.

Banking’s dirty secret is that banks are huge contributors to the climate crisis, investing trillions of dollars of their customers’ deposits into fossil fuels.

That’s why we like Ando, an online banking platform that only invests in companies that are directly fighting climate change. On top of that, Ando lets you get paid two days early and never charges a fee for any of its features.

How Switching Where You Bank Can Fight Climate Change

Ando is a state-of-the-art mobile banking platform with all the features you’d expect in today’s digital-first world. Once you set up direct deposits, it won’t charge you any fees for anything, ever. Here are some of our favorite features:

Get paid two days early: When you get paid via direct deposit, you can access those funds up to two days early. Unlike many financial institutions, Ando gives you access to your money when you need it.

No overdraft fees: Unlike virtually all the brick-and-mortar banks, Ando doesn’t charge you for overdraft protection.

Checking account: Ando comes with a Visa Debit Card with no minimum deposit required and easy remote deposits and digital payments.

Referral bonuses: Invite up to five friends to join Ando, and you can boost your savings account interest rate up to 5% APY. Plus, you and each friend can earn up to $15 with Ando friend referrals.

ATMs: You can get cash with your debit card at more than 34,000 ATMs across the country with no fees. There’s a $2.95 fee for out-of-network ATMs.

Customer service: Available seven days a week via email or phone.

Insured: Money in your Ando account is FDIC-insured for up to $250,000.

How the Other Guys Use Your Money

Where do most banks invest your deposits — more than 90 cents of every dollar? Fossil fuel companies and their ultra high polluting projects. They’re using your money to contribute to the climate crisis.

“Most people don’t realize that the money we have on deposit is utilized by the bank to make loans and purchase securities,” says Ando’s founder, JP McNeill. “This is how traditional banks make money.”

The big banks are largely bankrolling the fossil fuel industries, to the tune of nearly $3 trillion in the last five years alone.

Where does Ando invest your deposits? Clean, renewable energy, sustainable transportation, regenerative agriculture and green buildings. Ando invests exclusively in green initiatives and is 100% transparent as to where those investments are made.

How to Get Started

For too long, you’ve had no control over how your bank uses your hard-earned money. Now there’s something you can do about it. Sign up with Ando via their app, which is available for iOS or Android.

Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.

<!–

–>

Source: thepennyhoarder.com

November 22, 2021

The Best Banks for Freelancers Keep Up with Unique Challenges

Making money as a freelancer can be hard enough — but then you have to figure out how to manage it.

With a slew of bank account options out there, it can be difficult to narrow down all the financial institutions and determine the best place to stash that hard-earned cash, especially if your financial lifestyle is a little less regular than most 9-to-5 workers’.

To help, the Penny Hoarder team has put together this post to compare some of the best bank accounts for freelancers. That way, you can make an informed decision with minimal fine-print reading.

What Is a Freelancer?

Before diving into the top banks for freelancers, it might be helpful to explain just what’s meant by “freelancer.” In short, a freelancer is someone who does work on a per-task or per-project basis and is paid by the task. Freelancers are self-employed and they don’t receive medical benefits or other perks such as vacation or sick time like company employees do.

Freelancers typically work for several companies, called clients, as independent contractors. The term often has a creative connotation — fields like writing, editing, web design, or photography — but there are exceptions.

What Makes a Business Bank Account Ideal for Freelancers?

Since freelancers are self-employed, they have some additional needs and responsibilities that the average full-time employee might not. For example, freelancers need to pay taxes themselves — nothing is withheld from their paychecks automatically.

Additionally, since freelancers are self-employed, they can count a number of purchases as business expenses, and keeping track of these is important for tax purposes.

Here are the major features to consider when choosing bank accounts as a freelancer:

Fees: Nobody wants to pay money just to keep their money, especially when you have a variable income. Ideally that means no monthly fee and unlimited transactions.
Customer Service: Knowing you’ve got a reliable team on your side when you have questions or concerns is vital.
Accessibility: Since freelancers often work out of their own homes and remotely, accounts that are tech optimized, with intuitive online banking options and high ATM or branch availability, are generally best. ATM access is especially important for cash deposits.
Business Account Offerings: Don’t forget to look at business account offerings for each bank, which can be helpful if you decide to incorporate your business or start an LLC.
Mobile-friendliness: A usable mobile app is extremely important, especially for banks that don’t have brick-and-mortar locations.

Help with budgeting and money management will also earn bonus points since everything’s a bit more complicated when you aren’t relying on a regular paycheck. However, these are nice-to-have features, rather than necessities.

Taking into account these features, we have rounded up the best banks — and in once case a well-known online payment system — for freelancers.

The 4 Best Banks for Freelancers

Bank	Top Feature	Prime Perk
Axos Bank	Selection of accounts	Generous support hours	SEE DETAILS
Chase Bank	5,100 branches	Support options	SEE DETAILS
PayPal	Free business account	Invoicing features	SEE DETAILS
Lili	Freelancer friendly	Top notch on mobile	SEE DETAILS

Axos Bank

Best for Online-First Banking

Key Features

Lots of experience in online banking
Generous support hours
Wide selection of accounts

4 out of 5 Overall

Axos was one of the original online-only banks from way back in 2000. As such, it has a unique understanding of what it means to be online-first — ideal for freelancers who consider themselves digital nomads. Axos offers a number of solid personal bank account and business bank account options, as well as fee-free IRAs and other useful services for freelancers.

Axos Bank

Fees

Business checking accounts available with no monthly fee and low or no minimum balance requirements.

Customer service

Business customers can get help weekdays from 6 a.m. to 6 p.m. PST.

Accessibility

There are no branches, and ATM fees are only reimbursable for certain partner institutions.

Business bank account options

Plenty of account options with high interest rates.

Mobile-friendliness

Mobile apps for iPhone and Android.

Axos offers relatively high-yield checking accounts on both the personal and business sides. Their personal savings account offers up to 1.3% APY, and their business interest checking account earns 0.8% APY. That makes it one of the best business checking accounts available for freelancers (or anyone else, for that matter) that want their money to earn interest.

However, if you’re used to in-person banking, Axos might not be for you. Although they offer ATM fee reimbursement at specified locations, you won’t be able to walk into a branch and speak face to face with a teller.

Chase Bank

Best for a Traditional Business Checking Account

Key Features

Physical locations nationwide
Useful support options
Variety of business accounts

4 out of 5 Overall

If you want brick-and-mortar access to your business checking account, Chase might offer the best bank accounts for freelancers among the big national players with the Chase Business Complete Banking. It regularly offers new subscribers large opening bonuses, carries low minimum deposits, and offers a number of ways to waive its already-low maintenance fees. You can open personal checking accounts

Chase Bank

Fees

Monthly fees can be waived in account minimums met.

Customer service

You’ve got all the options: email, phone and walking into a branch.

Accessibility

More than 5,100 branches nationwide and 16,000 ATMs.

Business bank account options

Lots of different options though eligibility depends on where you live.

Mobile-friendliness

Online banking and a mobile app mix real-world and on-the-go banking. Mobile check deposit handy.

As a major financial institution, Chase also offers a host of business bank accounts and tools, including merchant services that make taking credit card payments easy — even if your brand of freelancing has you out in the world and not constantly behind a computer screen.

Chase also offers a discount for those who sign up to use ADP payroll, which could be useful if you go the S-corp route (or have an employee or two). All together, the Chase business checking account is an excellent option.

To learn more, read our Chase Bank review.

PayPal

Best for Accepting Payments

Key Features

Business banking with no monthly fees
Built-in invoicing and payment features
Fast transfers to other accounts

3 out of 5 Overall

Okay, this one isn’t really a bank and you know it as a digital payment system. But PayPal’s business account upgrade has a lot of useful features for freelancers, including built-in invoicing and an easy-to-use app with mobile check processing. Even if you have a standard bank account, it’s worth having a PayPal account as a freelancer, since many clients will want to use it to process payments.

PayPal

Fees

Minor and mostly possible to get around, except in the case of invoicing.

Customer service

Excellent and readily available, both online and via phone.

Accessibility

While there’s no such thing as a PayPal branch, it’s easy to move funds to other bank accounts.

Business bank account options

PayPal offers a free upgrade from personal to business accounts, adding a host of tools.

Mobile-friendliness

Intuitive and user-friendly, both in a web browser and via mobile app.

There’s no monthly fee with a PayPal business account, though you may pay fees for certain types of transfers. (It’s free to transfer funds to your personal bank accounts as long as it’s not a rush, however.) There’s also a cost to the business owner when invoices are paid — PayPal’s fee is 2.9% plus 30 cents per transaction. This is fairly standard for the payment processing industry, though.

Lili

Best All-In-One Solution

Key Features

Built-in expense and tax tracking
Handy referral program
Unlimited transactions with no monthly fee

4 out of 5 Overall

Lili is a tailored checking account that aims to help tackle the unique challenges that come with freelancing. As a freelancer, there are a number of financial tasks that are entirely up to you to handle, like setting aside money for taxes. Lili promises to help with a dedicated business checking account. The app, available for iOS or Android, is laser-focused on specific freelancer needs.

Lili

Fees

None.

Customer service

Standard phone support and a useful online help center.

Accessibility

No physical locations, but access to 32,000 free ATMs across the country.

Business bank account options

Solid — it’s designed for freelancers, after all.

Mobile-Friendliness

This is a mobile-only bank, and the mobile app is quite good.

The Lili business checking account comes with its own Visa debit card. Whenever you spend any money, you’ll get a push notification asking you to swipe left or right to instantly categorize the expense as either “personal” or “business.” At tax time, this will allow you to easily maximize your expenses and reduce your taxable income, lowering your tax bill.

Even better: You can earn cash by referring up to 10 friends to join Lili. Once they sign up and spend $250 on their Lili card in the first 45 days, you’ll each get $100. You can also earn a $50 bonus when you open a Lili Pro account and spend at least $1,000 with your debit card within 60 days.

Frequently Asked Questions (FAQs) About Bank Accounts for Freelancers

Which Bank Account is Best for Freelancers?

While it really depends on your needs, the best bet for most freelancers is combination of Chase or Axos (Chase if you want physical branch access for cash deposits, Axos if not) and PayPal, the payment system fintech that’s built for business. This gives you a feature-rich business checking account and the additional payment options of a PayPal account.

Which Bank is Best for the Self-Employed?

Chase (specifically Chase Business Complete Banking) tends to be the best option overall for self employed bank accounts due to the presence of thousands of physical locations, as well as a solid online experience. This gives the most options to the widest possible group of self-employed individuals.

Do I Need a Separate Bank Account as a Freelancer?

Technically, no. However, it’s a good idea to separate your business and personal accounts using a separate business checking account. You may also want to look at business savings accounts. This makes it easier to track income and expenses. Additionally, depending on how you structure your business, you may be required to maintain a business banking account to show that your business is a separate entity apart from you.

How Do I Open a Bank Account as a Freelancer?

This is the easy part! Simply head to a physical location or the website of your chosen bank and let them know you want to open a business checking account (and possibly a business savings account). The bank will take care of the rest.

Penny Hoarder contributors Dave Schafer and Jamie Cattanach did the reporting and writing for this story.

Source: thepennyhoarder.com

November 22, 2021

What Is a Federal Direct Subsidized Loan?

Federal Direct Subsidized Loans are available to students who demonstrate financial need. The federal government subsidizes this type of loan by paying the interest that accrues while the student is enrolled at least half-time and during qualifying periods of deferment, such as the grace period.

It’s one of three federal student loans available to student borrowers. The others include Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans. Read on for more information about the benefits of Direct Subsidized loans and details about other types of student loans available to eligible students.

What Are the Benefits of a Federal Direct Subsidized Loan?

Like any other student loan, you will be responsible for paying back your Federal Direct Subsidized Loan after you finish school, but unlike many other student loans, you won’t be responsible for paying interest while you are in school or during your grace period. The government subsidizes this type of loan by paying the interest on your behalf.

Since the government is paying the interest, it is not capitalized on the loan when you graduate. When interest is capitalized, it means it is added to the principal value of the loan. This becomes the new principal value and interest will accrue based on this new balance. Since there is no interest to capitalize, the amount you originally borrowed and the amount you’ll have to repay after your grace period ends will be the same.

Recommended: Understanding Capitalized Interest on Student Loans

Interest on a Direct Subsidized Loan won’t start accruing until the grace period is over. This might sound like a minor detail, but not having to pay interest while you are in school can drastically cut down the overall cost of your loan.

Other benefits of a Federal Direct Subsidized Loan? Like other federal student loans, you are not obligated to make payments during school.

How Do You Apply for a Federal Direct Subsidized Loan?

In order to apply for a Federal Direct Subsidized Loan, you will need to complete the Free Application for Federal Student Aid, more commonly known as FAFSA®. The FAFSA is available for free online, and contains questions about you and your family’s financial circumstances.

The information you submit through the FAFSA is transmitted to your school, and is used to determine what types of aid and how much for which you may be eligible. The FAFSA must be completed annually.

How Is Your Eligibility for a Federal Direct Subsidized Loan Determined?

After the FAFSA has been reviewed, you will receive a Student Aid Report , which will explain your eligibility for the various types of federal financial aid. What type of aid and how much aid you are eligible for depends on many different circumstances, including the amount the federal government expects you and your family to contribute to your educational costs, your current enrollment status in school, and the cost of attending your particular college.

The financial aid staff at your school is responsible for determining exactly how much and what type of federal loans you are eligible for.

Because Federal Direct Subsidized Loans are a need-based form of federal financial aid, you must meet certain eligibility requirements to qualify. These requirements are largely based on your expected family contribution, or how much the federal government expects that you and your family can put towards your educational expenses.

There are also limits on the amount of subsidized loans you can borrow each year, regardless of your financial need. For the 2021-2022 school year, the limit on subsidized loans was $3,500 for first-year undergraduates, $4,500 for second-year undergraduates, and $5,500 for third-year undergraduates and beyond.

Graduate and professional students are not eligible for Direct Subsidized Loans.

Paying Back a Direct Subsidized Student Loan

Like other types of student loans, you will need to start paying back your Federal Direct Subsidized Loan if you leave school or after graduation. After graduation, borrowers with Federal Direct Subsidized Loans are eligible for a six-month grace period before repayment is required.

Some people with Direct Student Loans may potentially qualify for Public Service Loan Forgiveness (PSLF). PSLF is available to qualifying college graduates who work in certain fields like government, the nonprofit sector, or healthcare, and allows some federal student loans to be forgiven after 10 years of qualifying payments.

Actually getting approved for PSLF can be extremely challenging due to stringent requirements. In October 2021, the the Department of Education announced plans to overhaul the program in order to improve upon the program’s accessibility.

Beyond Subsidized Loans: Other Options Available to Student Borrowers

Since borrower eligibility for Direct Subsidized Loans is based on borrower need, and there are annual borrowing limits, students may be interested in learning about other loan options available to them. There are three other types of federal loans and some borrowers may consider private student loans.

The three types of federal loans available outside of Direct Subsidized Loans are:

• Direct Unsubsidized Loans. These loans are available to undergraduate and graduate students. Unlike Direct Subsidized Loans, borrowers are responsible for paying the interest on these loans while they are enrolled in school and during their grace period. Eligibility is not based on financial need.

• Direct PLUS Loans. PLUS Loans are options for graduate and professional students, or parents of students who are interested in borrowing a loan to help their child pay for college. Eligibility for this type of loan is not based on need, but the application process does require a credit check.

• Direct Consolidation Loan. This federal loan isn’t awarded to borrowers as a part of their financial aid package. Instead, a Direct Consolidation Loan allows borrowers with multiple federal loans to combine (or consolidate) them into a single loan. The loan’s new interest rate is the weighted average, rounded up to the nearest one eighth of a percent, of the interest rates on the existing loans.

Private student loans are offered by private lenders. They are not required to offer the same borrower benefits or protections — think of things like PSFL or income-driven repayment plans — as federal student loans. Because of this, private loans are generally considered after borrowers have reviewed all of their other financing options.

Recommended: A Guide to Private Student Loans

To apply for private student loans, potential borrowers will need to fill out an application directly with the lender of their choice. The loan’s terms and interest rates will be influenced by factors including the borrowers financial situation and credit history, among others.

The Takeaway

Borrowers with Federal Direct Subsidized Loans are not responsible for the interest that accrues while they are enrolled in school at least half-time or during the grace period or other qualifying periods of deferment. The interest is subsidized by the U.S. government. To qualify for this type of federal student loan, borrowers must be qualifying undergraduate students who demonstrate financial need.

Other options for students looking to pay for college may include Direct Unsubsidized or PLUS Loans, scholarships and grants, or work-study. After reviewing those options, borrowers still looking for resources to pay for school may consider private student loans as an option.

SoFi offers private student loans for undergraduate and graduate students or their parents and there are no fees — that means there are no late fees, no application fees, or origination fees.

Interested in learning more about using a private student loan to pay for college? See what SoFi has to offer.

SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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.
SOSL18234

Source: sofi.com

November 20, 2021

What Are College Tuition Payment Plans?

According to the 2021 Sallie Mae survey “How America Pays for College,” nearly 80% of students and their families eliminated a college based on cost when determining which school to attend.

If the cost of college tuition is one of the determining factors in your decision process, it could be worth looking into tuition payment plans. College tuition payment plans are offered by colleges and allow tuition to be paid over an extended period of time. Typically, it is not difficult to qualify for a school’s tuition payment plan, but there may be a fee in order to enroll.

These plans are offered by some colleges and could help make tuition payments more manageable for students and parents.

What Is a College Tuition Payment Plan?

Instead of paying for college tuition at the beginning of each year, semester, or quarter, college tuition payment plans — also known as tuition installment plans or deferred payment plans — allow students and their families to spread out the cost of tuition over a period of time.

Depending on the school, the plan may allow payments to be made over the course of the semester or over the full year.

While you’ll generally have to start making payments right away, programs frequently offer the option to spread payments into monthly installments. Some schools also offer programs that break the payment into a few equal payments throughout the semester.

How Do Payment Plans Work?

Some colleges run their own tuition payment plans. Others use an outside service to administer the plan.

Typically these payment plans only cover the direct costs charged by and paid to the college, such as tuition and fees. Sometimes the cost of housing and meal plans will also be included under a tuition fee payment plan. The cost of things like textbooks and school supplies are not usually included in these payment plans.

Many tuition payment plans require an enrollment fee, which may fall around $50 or $100, although it may be lower. These plans don’t usually charge interest, which can potentially make them less expensive than taking out a student loan, as long as you are able to make the monthly payments.

What Types of Colleges Offer Payment Plans?

Many schools offer some sort of tuition payment plan. Qualifying for the plan isn’t generally very difficult. However, some schools do have specific enrollment periods. Check with the school you plan to attend to determine when you need to enroll and what is required to do so.

What if My School Doesn’t Offer a Payment Plan?

For many students and their parents, paying for school upfront isn’t possible. Sometimes even with a payment plan, the burden of tuition is still too high for students and their families.

Consider some of the following options when planning to pay for college tuition. While these ideas might not be enough to help you cover the full cost of tuition on their own, a combination of a few could do the trick.

Federal Aid

Federal aid for college encompasses grants, scholarships, student loans, and work-study. To apply, students must fill out the Free Application for Federal Student Aid (FAFSA® ) each year.

The schools you apply to will use this information to determine how much aid you receive. You’ll typically receive an award letter detailing what types of federal aid you’ve qualified for and the amounts.

Federal Student Loans

Federal student loans can be either subsidized or unsubsidized. Subsidized loans are awarded based on need. The Department of Education covers the interest that accrues on these loans while you are in school at least part-time, during the grace period after leaving school, and during periods of deferment or forbearance.

Unsubsidized federal loans are awarded independent of need. Borrowers are responsible for paying the interest that accrues on these loans while they are in school and during periods of deferment, like the grace period.

Payments are not required on either unsubsidized or subsidized loans while you are actively enrolled more than part-time in school.

There are also PLUS loans available to parents who are interested in borrowing a loan to help their child pay for college.

Work-Study

The federal work-study program provides jobs for undergraduate and graduate students who demonstrate financial need. The amount of work-study you receive will depend on factors like when you applied, your level of determined financial need, and the amount of funding available at your school.

The money earned for work-study won’t count against you when you fill out the FAFSA, so it shouldn’t jeopardize future financial aid awards. Each time you fill out the FAFSA, it’s worth indicating that you’re still interested in receiving work-study as part of your financial aid award (that is, if you are still interested).

And it’s important to remember that your financial aid award may change from year to year, depending on you and your family’s circumstances.

Scholarships and Grants

Scholarships and grants don’t typically have to be repaid, which makes them one of the best options for students trying to pay for school. Some scholarships and grants are awarded by schools based on the information you provided in the FAFSA, but there are scholarships and grants available that aren’t based on financial need.

Taking some time to comb through online databases that catalog available scholarships, like FastWeb or Scholarships.com , could prove helpful. Each scholarship will have different application requirements.

Some might require an essay or additional supplementary materials, but the effort could be worth it if you’re able to fund a portion of your tuition costs.

Private Student Loans

Sometimes federal aid, scholarships, and your savings aren’t enough to cover the full cost of tuition. In those cases, private student loans could be an option. Unlike federal student loans, which are offered by the government, private student loans are offered by banks, credit unions, or other private lenders.

The private student loan application process will vary slightly based on lender policies, but will almost always require a credit check.

Lenders will review your credit score and financial history as they determine how much money they are willing to lend to you.

In some cases, students might need the help of a cosigner to take out a private student loan. This could be the case if they have little to no credit history.

Some parents may also be interested in taking out a loan to help their child pay for their education.

The Takeaway

Tuition payment plans, which extend the payment for college tuition over a fixed period of time, can be helpful for parents and students as they navigate how they’ll pay for the cost of education. Spreading tuition payments over the semester or year can help make them more manageable.

Private student loans could be worth considering after you’ve exhausted your federal aid options, and if things like tuition payment plans aren’t financially feasible. If you decide a private student loan is a good option for you, consider SoFi as your lender.

SoFi offers student loans for undergraduate students and their parents. If you qualify to borrow a private student loan with SoFi, there are no fees. The application process can be completed entirely online. You can also choose one of four flexible repayment plans for undergraduate student loans.

Want to learn more about the private student loans offered by SoFi? See your rates and find out if you pre-qualify right now.

SoFi Loan Products
SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636 . For additional product-specific legal and licensing information, see SoFi.com/legal.
SoFi Private Student Loans
Please borrow responsibly. SoFi Private Student Loans are not a substitute for federal loans, grants, and work-study programs. You should exhaust all your federal student aid options before you consider any private loans, including ours. Read our FAQs.
SoFi Private Student Loans are subject to program terms and restrictions, and applicants must meet SoFi’s eligibility and underwriting requirements. See SoFi.com/eligibility for more information. To view payment examples, click here. SoFi reserves the right to modify eligibility criteria at any time. This information is subject to change.
Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. A hard credit pull, which may impact your credit score, is required if you apply for a SoFi product after being pre-qualified.
External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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.
SOPS19056

Source: sofi.com

November 18, 2021

Acorns Review: An App that Lets You Invest Without Thinking About It

Quick Navigation

You’ve probably heard of Acorns. It’s a popular micro-investing app — even among people who don’t know a lot about investing — that helps you save money in a diversified portfolio.

By using one of its most popular features, you invest money without even really thinking about it. We love that convenience.

But investing is actually a serious endeavor. In this Acorns review, we’ll cover the app’s features, investing strategy and cost, along with other important details you should know before you get started.

What Is Acorns?

Acorns is a California-based fintech company that helps simplify and automate investing. Users can contribute money to a passively managed, diversified portfolio through recurring transfers and/or spare change round-ups.

Founded in 2014, Acorns has quickly become one of the most profitable and popular micro-investing apps in North America. The start-up has an estimated 8 million subscribers and was valued at roughly $2.2 billion in May 2021, according to CNBC.

The company has steadily expanded its financial services over time. The Acorns app now offers banking products (including a checking account), educational resources, a debit card, custodial accounts for kids and an automated retirement account service.

Acorns derives about 80% of its revenue from monthly user subscription fees. The other 20% comes from interchange fees and brand partnerships.

Acorns offers two membership options to subscribers. Both accounts charge a flat monthly fee:

Personal

$3 per month. You get access to an investment account, a retirement account and a checking account.

Family

$5 per month. In addition to all the Personal account features, the Family account grants access to custodial investment accounts for children.

Let’s dive into what these services include and other features in the Acorns app.

How Does Acorns Work?

Getting started with Acorns is easy. You open an account by visiting the Acorns website or mobile app, enter some personal information and then link your banking account to the app.

Acorns has a $0 account minimum balance, but requires at least $5 to start investing.

Acorns Services

Acorns markets its saving and investing features with five different names: Invest, Later, Spend, Early and Earn.

Most features are available with the $3 account, but Acorns Early is only available with the $5 Family account.

Acorns Invest (Taxable Brokerage Investment Account)

This is a taxable investment account that puts your money into a collection of exchange-traded funds (ETFs). Acorns creates your portfolio based on a questionnaire designed to gauge your risk tolerance and financial goals. You’ll answer these questions when you create your account.

You can add money to your Acorns investment portfolio via round-ups, recurring transfers from your bank or one-time deposits.

We’ll discuss more about how Acorns invests your money.

Acorns Later (Traditional IRA, Roth IRA, SEP IRA)

This is a tax-advantaged retirement account.

A retirement savings account is an investment portfolio, but it comes with some specific federal tax perks (and a few penalties, especially for early withdrawals).

The Acorns app lets you pick from either a traditional or Roth IRA. They also offer a SEP IRA option for self-employed people.

Saving for retirement is important. If your employer doesn’t offer a 401(k) plan, opening your own individual retirement account is a great way to start growing your nest egg.

The Acorns Later (IRA option) is a separate account from your Acorns Invest (taxable brokerage account). You get access to both with the $3 tier.

Like Acorns Invest, your IRA portfolio is made up of ETFs. You can also set up recurring transfers from your linked account to your Acorns retirement account.

Acorns Spend (Checking Account/Debit Card)

Acorns Spend lets you open a checking account through the app’s partnership with Lincoln Savings Bank.

You’ll also get access to a Visa debit card connected to your Acorns Spend account.

The Acorns checking account doesn’t charge overdraft fees. Instead it pauses your account until you add funds and get your balance out of the red. It also doesn’t charge foregin transaction fees if you use your Acorns debit card abroad. Plus your card can withdraw cash from more than 55,000 fee-free ATMs globally.

You can fund your Acorns checking account four ways:

Direct deposit
Recurring deposit
One-time deposit
Mobile check deposits

Acorns Early (UGMA Custodial Accounts)

Acorns Early lets you set up investment accounts for your children, also known as a UTMA/UGMA account.

You can open multiple UTMA/UGMA accounts with an Acorns Family plan — whether they’re for your child, a grandchild, a niece or even a godson.

To get started, you’ll need the child’s full name, date of birth and Social Security number. Like Acorns’ other offerings, you only need $5 to get started with Acorns Early, and your money funds an automated, diversified portfolio of exchange traded funds.

A UGMA account is a custodial brokerage account for children. You can transfer this investment account to your child when they become a legal adult.

Unlike a 529 plan that can only be used for educational expenses, a UTMA/UGMA is more flexible on how the money can be spent (you can use the funds for anything that benefits the child).

Once the child reaches the age of transfer, usually 18 or 21, they become the account’s owner and can use the money for any reason.

Make sure to research the different types of investment accounts for kids or speak with a financial advisor to find the best account for you.

Acorns Earn (Cash Back Feature)

Formerly known as Found Money, Acorns Earn is the app’s online marketplace with over 200 brands.

When you shop with these merchants, extra money will be added to your Acorns Invest account, usually as a percentage of your order total or a flat dollar amount. For example, you can earn 50 cents on each Uber ride but 3.5% back on Uber Eats orders.

For “Tap and Get” offers, you have to go through the Acorns app and complete a purchase with their partner using your mobile phone.

For “Simply Spend” offers, you’ll receive cash back any time you use your Acorns-linked card to make purchases with partner brands.

Make sure to read the instructions carefully on each offer or you’ll likely miss out on the cash back.

Aa a final note: While there are some good offers on Acorns Earn, many are incentivizing you to buy things you may not really need. Purchasing a fancy product or service just to get a few bucks invested in your Acorns account kind of defeats the purpose of saving for your future.

Acorns also has a few features common to all of its investment accounts.

Round-Ups

Round-up is probably Acorns’ best-known feature. After linking a debit card, your purchases are rounded up to the nearest dollar and the spare change is swept into your Acorns investment account.

For example, if you spend $10.20 on Amazon, you’ll be charged $11 and the 80 cent difference will be invested into your portfolio. This makes round-ups an easy way to invest when you spend money on everyday purchases.

If you have the Acorns Visa debit card, round-ups are automatically deposited into your account. If you don’t, Acorns transfers the money from your linked account to your investment account once it reaches at least $5.

Recurring Investments

You can set up automatic transfers from your linked banking account to your Acorns account on a daily, weekly or monthly basis.

Enabling recurring contributions is a great way to take advantage of dollar-cost averaging and consistently invest money for your future without thinking about it.

You can opt in for recurring transfers in addition to spare change round-ups to grow your account balance even faster.

Acorns also lets you make one-time lump-sum deposits.

Acorns Grow Your Knowledge

This is the hub for Acorns’ educational articles and advice on personal finance and investing.

Articles are broken into different categories, like retirement and borrowing, and they’re written in simple terms digestible in an app-friendly format.

For more educational resources, you can check out the grow.acorns.com site, powered by CNBC, which features articles on market trends and financial literacy topics.

How Acorns Manages Your Money

Acorns is a robo-advisor, meaning it uses computer software and algorithms to select a pre-made portfolio based on your age, income, risk tolerance and time horizon (how long before you may need to access your funds).

After answering a brief questionnaire, Acorns invests your money into a portfolio of exchange traded funds (ETFs), which bundle numerous stocks or bonds into a single fund. (FYI: ETFs are sometimes referred to as index funds.)

Acorns uses iShares and Vanguard ETFs, which come with very low expense ratios. An expense ratio is the operating fee charged by an ETF.

Acorns offers five different portfolios, ranging from conservative to aggressive. The aggressive option consists of stock ETFs while conservative options expose you to more bond ETFs.

You can choose a different portfolio if you disagree with the algorithm, but you can’t pick your own individual stocks or bonds with an Acorns account.

Acorns uses modern portfolio theory, an investment strategy that works by diversifying you across different asset classes to help lower risk and maximize returns.

ETFs span six different asset classes:

Corporate bonds
Government bonds
Domestic large company stocks
International large company stocks
Small company stocks
Medium company stocks

Because ETFs can cost hundreds of dollars per share, Acorns builds your portfolio with fractional shares. That’s how you can get started with as little as $5.

Once you start investing, your portfolio will be periodically rebalanced to maintain its target asset allocation. You also get the benefit of automatic dividend reinvestments.

Acorns Sustainable Investing Portfolio

Acorns gives users the option to save and invest in a sustainable portfolio made up of ETFs graded using environmental, social and governance (ESG) criteria.

Acorns says these socially responsible investing portfolios are designed to provide exposure to more sustainable companies, while still striving to perform as well as a traditional portfolio.

You can opt into Acorns’ sustainable portfolio for no additional monthly cost. However, the ETFs in this ESG portfolio come with slightly higher expense ratios.

Acorns Cost and Fees

Acorns charges a flat monthly management fee for its services. It advertises two different membership tiers: a $3 option and a $5 option.

Prior to Sept. 21, 2021, Acorns offered a third membership option for $1 per month. Acorns Lite gave you access to its automated portfolio and investment services. If you wanted an IRA or checking account, you had to upgrade to the $3 option.

Acorns recently phased out Acorns Lite. Existing customers can (potentially) still keep the $1 option, now called Acorns Assist, by following these steps on the company’s website.

Acorns Account Pricing

Membership	Price per month
Acorns Assist (for existing customers facing economic hardship)	$1
Acorns Personal	$3
Acorns Family	$5

We suggest locking in that $1 Acorns Assist price if you can. Otherwise, spending $36 a year for a brokerage account is pretty expensive, especially if your account balance is low.

Other robo-advisors, such as Wealthfront and Betterment, charge a management fee as a percentage of your portfolio balance instead of a flat monthly fee. That may not sound like a big deal, but imagine this.

Let’s say you funded a new investment account with $100. Betterment charges an annual management fee of 0.25% for its basic account, which would cost you just $0.25 a year. Compare that with investing $100 in the Acorns Personal account, where the annual fee would total $36.

Obviously, Acorns’ management fees take up a smaller proportion of your balance as you invest more money. Still, you’d need about $13,000 in an Acorns Personal account to get down to an annual fee of 0.25%.

However, if you’re more comfortable with Acorns or want to give it a try, at the end of the day, we’re just happy you’re investing. It’s a good first step, just mind those management fees over time.

What Acorns Offers

Here’s a closer look at the nuts and bolts of Acorns accounts.

Acorns Review: Services and Features

Feature	Details
Account minimum	$0 to open, $5 to invest
Account management fees	Personal, $3; Family, $5
Portfolio mix	Stock & bond ETFs
Socially responsible portfolio options	Higher expense ratios
Tax strategy	No tax loss harvesting
Automatic rebalancing	Free for all accounts
Human advisor option	None
Bank account/cash management account	Checking w/ no overdraft
Customer support	Email [email protected]

Pros and Cons of Acorns

Acorns offers several advantages, but it’s not for everyone. It’s important to understand the pros and cons of any investing app before you sign up.

Pros

Easy-to-navigate interface you can access on your computer or mobile device.
Diversified portfolios with risk-appropriate, low-cost investment options.
Round-ups to the nearest dollar and recurring transfers from a linked credit or debit card make investing easy and effortless.
You get the option to bank, invest and save money for retirement in a single app.
There’s no account minimum and you can start investing with $5.

Cons

Acorns’ management fees are relatively high for accounts with low balances.
No tax loss harvesting feature.
No access to human financial advisors.
You can’t tweak individual investments inside your portfolio. (Nope, you can’t buy individual shares of Tesla or Apple with Acorns).

Frequently Asked Questions

Can You Make Money With Acorns?

Yes, that’s the whole idea! You’ll make money as your investments gain value over time. You can also earn bonus investments, known as Found Money, by participating in offers from the company’s business partners. Finally, Acorns also offers referral bonuses to users who get their friends and family to sign up for the app.

Is It Safe to Invest With Acorns?

Yes, Acorns is a safe and secure financial services app. Just like other brokerage accounts, Acorns complies with federal law and is registered with the U.S. Securities and Exchange Commision. Its checking account is also FDIC insured, giving you the same protection as a traditional bank.

What Are the Cons of Acorns?

Probably the biggest drawback of Acorns is that its $3 or $5 per month account options are relatively pricey for people with low account balances. Acorns phased out its $1 Acorns Lite option for new users in September 2021.

Rachel Christian is a senior writer for The Penny Hoarder.

<!–

–>

Source: thepennyhoarder.com

November 17, 2021

What Are P2P Transfers & How To Use Them

One of the most popular forms of electronic payment, peer-to-peer transfers (also known as P2P payments) give you the ability to send money to friends and family right from your mobile device. To make these payments, all you need is to download a money transfer app like Venmo or Paypal and then link your bank account or credit or debit card to it.

Here’s a closer look at exactly how these apps work, what fees may be involved, and how to use them safely.

What Is a P2P Payment?

Previously, if you wanted to share the cost of dinner with a friend or split bills with roommates, you would need to get cash at an ATM or write out a personal check, options that aren’t always quick or convenient.

With a P2P payment, you can send money to a friend with just a few clicks on your mobile device. For traditional P2P apps, both parties need to have an account with the transfer service in order to make the transaction.

For example, if you want to use Venmo to repay a friend for the coffee they bought you this morning, that person would also need to have a Venmo account to receive that payment.

Typically, a P2P account is attached to your bank account. Some P2P platforms, however, allow customers to link their P2P accounts to a debit card or even a credit card, though it may involve additional fees.

Many traditional, commercial banks are also getting in on the online money transfer game, offering services like Zelle to make it easier for customers to transfer money to one another instantaneously.

Recommended: How to Transfer Money From One Bank to Another

How Do P2P Transfers Work?

One of the biggest draws of P2P money transfers is how quickly and easily a payment can be initiated and transferred. These apps remove the need to share any personal financial information with the other party, and allow funds to be exchanged between different banks smoothly, often with no or very low fees.

Overview of the P2P Transfer Process

Say that you want to send money to your sister for your mother’s birthday present. Depending on the type of P2P service you use, you’ll follow some variation of these basic steps.

Creating a P2P Account. You will need to download a P2P app and then sign up for an account. In order to send money to your sister, you’ll both need to have an account with the same money transfer service.

Linking your bank account to your P2P account. Some P2P services have the ability to hold funds, but they generally must be linked to a primary bank account, credit card or a debit card in order to be fully operational. This is how the account will pull any funds needed to make a payment. To link your checking account, you may need your checking and routing number (which appear at the bottom of a check). Some P2P transfer services may only need your bank log-in information. Others may allow you to set up extra verification measures.

Searching for a user to transfer funds to. To send money to your sister, you’ll need to find her on the P2P platform. You can typically search by username, email address, or a phone number. Her photo may also appear within the profiles that you find, which will also help you ensure you’ve found the correct account. In most cases you will be able to add her account as a contact or “friend” in your account.

Initiating a transfer. Your sister can request a payment from you, or you can initiate the payment yourself. This requires choosing the option to send funds, entering a dollar amount, and then clicking submit. If you’ve enabled additional security measures on your account, you may need to enter a PIN that gets texted to you as well.

You may also have the option to add a description or “memo” to your transaction. Some P2P services, like PayPal, require this information so that they can charge a fee for business-related transactions. Others offer the option to act as a personal ledger should you need it in the future.

Waiting for the transfer to complete. When money is sent from one customer to another, it moves in the form of an electronic package safeguarded with multiple layers of data encryption. This makes it hard for hackers to access the data within the transfer while it is in motion. Similarly, data encryption keeps your money and account information safe.

Once the data set reaches its destination, it is decoded and deposited as currency, and your sister may receive any combination of text, email, or other alerts when the transfer is complete.

Transferring the funds into the payee’s bank account. When a transfer is complete, the funds may be deposited directly into your sister’s bank account. Or, they may go into an account created for her by the P2P service. Funds received into P2P user accounts can then be transferred into traditional bank accounts at little to no cost.

If your sister receives funds into her P2P account and decides to leave them in the account, she can use that account balance the next time she needs to pay someone. Depending on the vendor, she may also be able to use her P2P account to purchase your mom’s birthday gift.

How Long Do P2P Transfers Take?

The general rule of thumb for P2P services is to allow one to three business days for a transfer to complete. That’s because standard bank transfers use the ACH (or Automated Clearing House) system, which can take a day or two to complete.

Some apps offer instant transfers for a small fee, often around 1.5 percent of the overall transfer amount.

Are P2P Money Transfers Safe?

Any time your bank account, credit, or debit card information is online, there is a chance that someone can get a hold of it, and P2Ps are no different. While all major money transfer companies encrypt your financial information, no P2P system is totally impervious to hacks and scams.

The good news is that major financial services typically do all they can to keep information safe, and both the P2P services and your bank are likely adept at dealing with any issues of fraud. Still, it can be important to read each company’s security policy to make sure you’re comfortable with their tactics before agreeing to use that service.

There are also additional measures you can take to make sure that your account remains secure. For example, you may be able to set up two-factor authentication (which might involve typing in a unique pin number that is texted to your phone for each transaction) and also elect to receive notifications each time there’s a transaction posted on your account, enabling you to spot fraud right away if it were to happen.

You may also want to take care when you type in a recipient’s email address, phone number, or name. A typo could lead to the money going to the wrong person. It can be wise to always double-check your recipient’s information before you send a payment.

How Do Peer-to-Peer Transfer Companies Make Money?

P2P transactions are largely offered for free, which may beg the question of how the companies that offer these services stay in business. Here are two major ways they may generate income.

Account Fees

Typically, you can make P2P payments from a linked bank account or straight from the P2P account for free. If you want an instant transfer, or you are transferring money using a credit card or from depositing checks into your P2P account, there may be a fee involved.

Business Fees

P2P platforms aren’t just for consumers — they are used by businesses as well. Companies can create business profiles on P2P platforms and give their customers an additional payment option for their goods and services.

Compared to the free transactions that standard user profiles offer, business profiles are generally subject to a seller transaction fee for each customer purchase. Venmo, for instance, charges a fee of 1.9 percent, plus 10 cents for each transaction.

What Are the Benefits of P2P Money Transfers?

There are three main benefits to using online money transfer services.

• They’re fast. Depending on the service, P2P money transfers can be deposited fairly quickly. Most service providers provide same-day transfers between user accounts, as well as bank transfers that take just a few business days.

• They’re cheap. When exchanging money between friends and family, P2P money transfers are often free. There may be a small fee, however, If you want an instant bank transfer, are using a credit card instead of a bank account, are making a transfer above a certain dollar amount, are conducting a high volume of transfers, or are using the service for a business transaction.

• They’re easy. P2P transfers eliminate the need to make trips to the ATM or a local bank branch to get cash. They also eliminate the need to get out your checkbook, write a check and then mail it to someone. A P2P transfer online makes moving money within your network as easy as can be. All you need is a mobile device, the app, and cell service or WiFi.

Recommended: 8 Ways to Pay Your Friends Without Cash

The Takeaway

Peer to Peer (or P2P) payment apps facilitate mobile money transactions. You can use them in place of cash or writing a check when you want to give friends or family money, whether it’s to cover your portion of a dinner bill or split the cost of a vacation rental. Some businesses also accept this form of payment.

All you need to make a P2P transfer is a mobile device, an internet connection, and your P2P app, which you must link to your bank account or credit card. Typically, P2P transfer services require that both parties have accounts with their service in order to make a transaction.

Customers with a SoFi Money® cash management account, however, can send money to any person, anywhere, even if that person doesn’t have a SoFi Money account. If the person does happen to be a member of SoFi Money, the transfer will happen instantaneously.

Find out how quick and easy it is to make P2P transfers with SoFi Money.

SoFi Money®
SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC . Neither SoFi nor its affiliates is a bank. SoFi Money Debit Card issued by The Bancorp Bank.
SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
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.

Source: sofi.com

November 16, 2021

11 Side Hustles That Can Make You Money

We could all use a little extra money, and a good side hustle is one way to get it. A side hustle could help you save enough for a down payment on a car or house, fund that vacation you’ve always wanted, boost your investment portfolio, help you pay down debt or whatever you need some spare cash for.

In an ideal world, you could put your money to work and enjoy a truly passive income, or your side hustle would be so lucrative that it could finally become your main gig. But even if you have to keep your day job, a side hustle can make you money in an area you’re passionate about.

A side hustle is something you do in addition to your main job, so the best ones don’t require a lot of time, give you flexibility in when you work and can help you earn a decent amount of cash. The ideas below include a mix of low or flexible time commitment and good value for the amount of effort likely needed.

Top side hustles ideas to help you earn more

1. Walking dogs

Walking dogs sounds so old school, but it can offer a better payout than you might think. Plus, you can scale the business at least a little. Pet owners are likely to be wealthier than average (according to at least one study), and a busy pet owner in a city might not have time to walk their pooch. So they may be willing to pay you to do the job regularly — and if you coordinate things right, you may be able to walk a few dogs at a time, doubling or tripling the money you make in the same period.

If pets aren’t your thing, you could take a turn as a house sitter. While some homeowners may pay in cash, others may be away for months and offer you a place to stay, helping you save on what is probably your biggest expense.

2. Selling in an online marketplace

People are familiar with third-party selling sites such as eBay, Etsy or Amazon, but you can take it upscale by selling on a site such as Poshmark, which offers new and used fashion items. An advantage of going higher end is that you may be able to earn more for the same amount of work.

You could sell items from others who don’t have the time or ability to do it themselves. But when you develop a deeper knowledge of the market, you could take it a step further by buying the top items directly from clients and then earning that profit margin yourself.

3. Speaking engagements

Are you a master of motivation, a doyen of design or a ninja of cybersecurity? Take your expert skills and knowledge to an audience that’s willing to pay for your time. You’ll need to establish authority (through social media, blogs, books, videos or something else) and likely grow your audience first, but then you may be able to monetize that. Find a conference that’s willing to pay you to talk about what you love and then repeat the gig at new venues and for new audiences.

4. Tutoring

Everyone wants to ace the SAT or ACT or even just their next exam. Take your knowledge of the subject area and teach someone how to achieve success there. Nowadays you may even be able to do it from the safety and comfort of your own home through Zoom or other video conferencing software. If you have skills for standardized entrance exam tests for professional schools such as the GMAT or LSAT, you might be able to take things upmarket and turn an even greater profit on your time and skills.

5. Freelance writing

Freelance writing can be an attractive side hustle if you’re looking to fit in some work when you have time. It’s an even better setup if it’s in a specialized field with few competitors so that wages remain higher. Find a niche to write about, establish a reputation for turning in clean copy that needs few changes and then scale up as much as you want. You could turn that side hustle into writing about something you love or even a full-time position when you’re a known authority.

Is writing not your thing? Do the equivalent in media as a freelance video editor. Establish your credentials and then specialize in a subject area or two that you love.

6. Open a mobile business

Consider opening a mobile business for services that a user might not be able to travel to get. For example, consider a mobile service for replacing broken glass for windows in houses or cars. Schedule an appointment ahead of time and show up to fix the issue. You could focus on business outside of normal hours to establish a competitive edge and still keep your main gig.

Another option on the mobile theme could be a car detailing service. Bring your gear and get someone’s ride ready to roll in style.

7. Ride-sharing

Ride-sharing has become popular in recent years, though COVID-19 has helped put a damper on it, at least for the moment. But one benefit is the flexible hours. You may be able to work around your schedule, limiting your availability to nights or weekends, for example. Many people opt for a major ride-sharing player such as Uber or Lyft, or you may also be able to set up with a regional player.

8. Moving stuff

In a growing economy people are moving all the time, even if it’s only across town. Set yourself up as someone who can show up at any time and move that heavy item around the block or to the other side of town in your unused truck. You could expand into storing things for people while they’re in the process of moving from one residence to another.

9. Set up an online store

It’s never been easier to set up an online store through a service such as Shopify, and when you get things rolling, you really can make money while you sleep. It’s tough to beat that flexibility. Of course, the hard part is finding the products that consumers can’t live without and getting that community of people to your site. But building an online store is the kind of thing you could work on in your spare time and build out incrementally as you learn the ropes.

Bottom line

The best side hustles let you earn good money on your own terms, but it can take time to build up your side gig into something worthwhile. You’ll need to inform people of what you offer and show that you reliably deliver whatever you promise. From there you can see how big you can build your side hustle and whether it can become something even more lucrative.

Learn more:

Source: thesimpledollar.com