There’s more to banking than low monthly fees, high yield savings, and a large ATM network. More Americans today seek banks and credit unions that align with their values when it comes to sustainability and social responsibility.
The U.S. banking system tends to disregard lower income and rural communities, with traditional banks establishing multiple branches in the country’s largest and wealthiest cities. The most socially responsible banks, on the other hand, provide online banking, low monthly fees, and no minimum deposit requirements, making them accessible to lower income individuals and families. They may also support efforts to help lower income individuals qualify for personal loans, auto loans or mortgages at fair interest rates.
But that’s not all that comes with socially responsible banking. Socially responsible banks emphasize financial literacy for those in their local community. They might also consider their organization a green bank, committed to fighting climate change and avoiding projects that support fossil fuels.
10 Best Socially Responsible Banks and Credit Unions
The best socially responsible banking institutions combine sustainability, accessibility, transparency and ethics to help make the world a better place. Yet, you won’t sacrifice top-notch personal checking and savings or even high-quality business banking when you choose one of the financial institutions on our list. You can have the best of all worlds – and do what’s best for the world – by choosing a socially responsible bank or credit union.
1. Aspiration: Best for Online and Mobile Banking Services
Aspiration is not a bank. But it’s one of the best cash management accounts offered anywhere online, with no monthly fee and a host of money management features. The Aspiration Plus Spend Save account that offers 3% interest on savings.
Aspiration is a certified B-Corp that shows its commitment to socially responsible banking with a variety of programs. Aspiration will plant a tree each time you round up a debit card purchase to deposit the difference in your Save account. It pays 3% to 5% cash back on debit card purchases with companies that are members of the Conscience Coalition, a group of small businesses devoted to social responsibility and sustainability.
Aspiration offers two accounts: One asks members to “Pay-What-Is-Fair,” which means you can use the account for free if you choose. Aspiration Plus costs $7.99 monthly or $71.88 annually (save $24 when you pay upfront.) Save accounts in the Pay What Is Fair model earn 1% APY, while Aspiration Plus savings accounts earn 3% APY.
2. Amalgamated Bank: Best for Investment Planning
Amalgamated Bank has branch locations in the nation’s largest cities: Boston, New York, San Francisco and Washington D.C. The bank offers personal checking and savings accounts with no monthly fees.
Amalgamated Bank offers four checking account tiers, including three interest bearing accounts. Two of the accounts have no minimum opening deposit. If you choose the interest earning Give-Back Checking account, you’ll earn a high APY of 0.90% – 0.95%, with an additional contribution of one-half of your interest earnings going to the charitable organization of your choice.
In addition to its choices in checking and savings accounts, Amalgamated Bank stands out when it comes to helping new retail investors choose ESG companies to invest in and plan for their future.
3. Spring Bank: Best for New Yorkers
Hailed as New York’s first B Corp bank, Spring Bank offers personal and business banking online and at branches in Harlem and the Bronx. The Green Checking account offers no monthly fee with direct deposit, paperless statements and no overdraft fees. If you need an account to write checks, you’ll want to choose the Basic Checking account.
Spring Bank deposits are insured by the Federal Deposit Insurance Corporation, up to $250,000 per depositor, per account. But the bank works with the IntraFi Network to also insure multi-million dollar deposits across multiple reputable U.S. banks.
Spring Bank offers CDs with terms from 90 days up to five years with a minimum deposit of just $250 and interest rates ranging from1.50% APY up to 3.25% APY. The bank also has a high-yield Vacation/Club savings account for short-term savings.
Spring Bank ranks in the top 5% of all 3,000 B Corps across the world and earned awards for its Governance and Customer Service in 2022. The company strives to provide affordable financial products, enabling its customers to avoid what it calls “fringe” financial products like check-cashing services and payday loans.
The bank also supports small businesses in New York and beyond with business checking accounts, money market accounts, and business loans.
4. Beneficial State Bank: Best for West Coast Residents
With seven locations across California, Oregon, and Washington, Beneficial State Bank is the B Corp bank of choice for those on the West Coast. The bank’s majority owner is Beneficial State Foundation, a nonprofit organization serving the public interest.
Beneficial State Bank offers three checking accounts, all with a $50 minimum opening balance and a low monthly service charge. eChecking waives the monthly fee if you sign up for eStatements. Checking and Interest Checking products have low monthly service charges that are easy to waive if you meet certain criteria. The bank also has savings, money market, CD, and IRA accounts to help you meet your long-term and short-term savings goals.
With an emphasis on ethical, equitable banking, Beneficial State Bank is a green bank that does not support or lend fossil fuel companies. The bank shows where every percentage of your deposit goes and says that 75% of its lending occurs within its mission categories. The other 25% supports other categories, but never to projects or organizations that cause harm to the planet or the people on it.
Some of the bank’s top lending categories for businesses and consumers include environmental sustainability, affordable housing, auto loans with fair interest rates, and health and well-being. The bank is also a preferred lender for clean vehicle programs in the state of California.
5. City First Bank, A Subsidiary of Broadway Federal Bank: Best for Commercial and Nonprofit Banking
City First Bank is part of a family of companies devoted to socially responsible lending and personal and business banking in low to moderate income communities. City First Bank, based in Washington, D.C., is a black-led, minority depository institute (MDI), as well as a B Corp and a member of Global Alliance for Banking on Values.
City First Bank offers a variety of personal and business banking products, as well as accounts for nonprofit organizations. The personal checking account has no monthly fee if you meet any of four criteria:
One monthly direct deposit
10 debit card transactions
eStatement enrollment
Minimum monthly balance of $100
The bank also offers a personal savings account, CDs, money market accounts and savings accounts for minors.
6. Sunrise Banks: Best for Mortgages
Sunrise Banks offers a full range of personal banking products, including personal checking, savings accounts, credit cards, and a pre-paid Mastercard. But it is best known for its Pathway2Home affordable mortgage product, as well as other mortgages with down payments as low as 3%. The bank also writes VA loans with no down payment required.
By supporting affordable housing and helping Minnesota residents get into homes of their own and begin building generational wealth, Sunrise Banks shows its commitment to socially responsible banking. Like many of the socially responsible banks on this list, Sunrise Banks is a member of GBAV, a Community Development Financial Institution, and a B corporation.
7. Clean Energy Credit Union: Best for Clean Energy Loans
Most of the banks on our list support efforts to reduce climate change, do not help fund or support fossil fuel companies, and run their organization sustainably. Clean Energy Credit Union works to fund renewable energy through personal loans for electric bicycles, solar electric systems, geothermal heat pump systems, and green home improvements. Clean Energy Credit Union also offers auto loans for electric vehicles.
While the credit union specializes in funding renewable energy and other loans, it also offers options for personal checking and savings accounts. Checking accounts offer dividends from .01% APY to 3.56% APY with a minimum opening balance of just $25 and no monthly fees if you meet certain requirements, including having a Clean Energy loan.
Savings accounts include a bank account with a 0.15% APY and a minimum opening deposit of $100, certificates, and a money market account with dividends ranging from 0.95% up to 1.61% APY, with a minimum deposit of $2,500.
As part of its commitment to green living, the credit union offers bio-based, compostable debit cards that are eco-friendly. It is also one of the few banks or credit unions on our list that offers a Carbon Zero Teen Account online, which shows your teen the carbon offsets their deposits can fund.
8. National Cooperative Bank
National Cooperative Bank offers high yield CDs, and money market accounts, as well as checking and savings accounts and business products. The bank offers an interest earning checking account with a 0.90% APY and no minimum opening deposit. There is a $15 monthly fee if the balance falls below $500.
The money market account has a high 2.28% APY, with a minimum balance of $5,000 to avoid the $25 monthly fee. You will need just $100 to open the account. You can earn a 4.34% APY on with a 12-month CD with a $2,500 minimum opening deposit.
While the bank is committed to helping its customers earn money through high interest rates, it is equally committed to its duties as a socially responsible bank. The bank has donated $8 billion to support underserved communities nationwide, and provided loans and investments of $475 million to low and moderate income families, including mortgage loans.
9. Clearwater Credit Union: Best for Previously Unbanked Consumers
Clearwater Credit Union is a certified Community Development Financial Institution and a member GBAV. While most credit unions are devoted to serving their local communities, Clearwater takes it a step further by donating $1.6 million to 290 non-profit organizations in 2022. Employees donated more than 1,340 volunteer hours within their local communities, and the credit union awarded $20,000 in scholarships to students in the credit union’s home state of Montana.
Clearwater CU offers multiple choices in bank accounts, including a basic checking with no monthly fee, a premium checking that pays dividends, and a SmartSpend checking account with a low, $5 monthly fee for previously unbanked consumers.
The SmartSpend account can help lower income individuals and families avoid the fees that come with check cashing services or prepaid debit cards. It also gives them the opportunity to avoid overdraft fees while gaining the convenience of a deposit account, debit card, and access to mobile banking.
10. Carver Federal Savings Bank: Best for Small Business Banking
Many of the banks on our list devote time and money to sustainability, equality, and other social causes. But they don’t necessarily offer the highest interest rates available in online banking today. Carver Federal Savings Bank, however, is a Black-operated, socially responsible bank that also delivers high-yield savings of 4.00% APY.
But there is a catch. You’ll need a $5,000 minimum opening deposit. This might make the Carver savings account inaccessible to many in underserved communities seeking personal checking and savings accounts. However, for those on firm financial footing who want to support a socially responsible bank, Carver’s high yield savings is a solid choice.
Beyond the high yield savings, Carver is known for an array of checking and savings products for small business owners, including a money market account with 2.00% APY and a business interest checking account.
Start-up businesses or those with low-to-moderate balances might prefer the Carver Community Business Free Checking with no minimum balance, no monthly fee, and 200 free transactions per month. The bank focuses on Black- and Minority-owned businesses as well as women-owned businesses across New York City.
Carver is a designated CDFI and has reinvested 80% of every dollar deposited into NYC communities. It also donated $149 million in New Market Tax credit and more than $259 million in leveraged loans across the New York metro area.
How to Choose Socially Responsible or Sustainable Banks and Credit Unions
When you’re shopping around for a socially responsible bank, first consider what aspects of ethical banking are most important to you. Are you looking for a bank committed to serving low income communities, or one that puts a focus on renewable energy? Maybe sustainability is the most significant aspect to finding a socially responsible bank that aligns with your values.
Of course, you also want to think about all the other elements that you would consider for your personal banking needs. These include low fees, online banking capabilities and an intuitive mobile app, early availability of your direct deposits, and a high yield savings account.
Our list of the best socially responsible banks takes all these factors into consideration and showcases banks that back up their values with investments – in their communities and in the environment.
Organizations That Support Sustainability and Social Responsibility
The best socially responsible banks often showcase their commitment to ethical banking through certifications or membership in organizations that support and reflect their values. If a bank is a member of the Global Alliance for Banking on Values, recognized as a community development financial institution (CDFI) or a Certified B corp, you know the bank has demonstrated its commitment to ethical banking.
Global Alliance for Banking on Values (GABV)
The Global Alliance for Banking on Values (GABV) is a worldwide network of socially responsible banks committed to ESG values. GABV banks focus on three pillars:
Finance change
Do no harm
Sustainable products and services
To join the Global Alliance for Banking on Values (GABV), banks must show their commitment to sustainability, and have a balance sheet of at least $50 million. They must be a full service bank and show financial stability and stable governance. Many of the best socially responsible banks are members of the Global Alliance for Banking on Values (GABV).
Community Development Financial Institutions (CDFIs)
A Community Development Financial Institution is a bank, cash management account, or credit union that is certified by the U.S. government. It’s a bank that has shown a commitment to providing banking services in low income communities and underserved communities across the U.S.
Unlike many other financial institutions, Community Development Financial Institutions focus on areas such as economic development, affordable housing and supporting small businesses in their local community.
Certified B Corp
A Certified B Corp is any organization or socially responsible financial institution that successfully balances purpose and profit. Organizations can apply for B Corp certification if they demonstrate transparency, social responsibility, and show high social and environmental sustainability standards. Banks and credit unions must pass rigorous certification standards to become recognized as a B Corp.
FAQs
Still have questions about the best socially responsible banks? Check out some commonly asked questions below.
Which banks are eco-friendly?
Many U.S. banks meet eco-friendly requirements in a variety of ways. Some, like Clean Energy Credit Union, refuse to support fossil fuel companies. Aspiration plants a tree whenever customers round up their debit card purchases to deposit into a savings account.
To find eco-friendly banks, you can look up their ESG (Environmental, Social & Governance) ratings on their websites, in their financial statements, or on a website like Sustainalytics.
Remember, ESG ratings are derived from many factors, including a company’s diversity & inclusion practices, sustainability, charitable donations, and more. You may have to dig deeper to see which banks employ sustainable practices to reduce their carbon footprint.
How Can You Determine Which Banks Are Committed to Ethical Banking?
A search on a company website should help you find the best socially responsible banks committed to ethical banking. Check online to see if the bank helps underserved communities or the unbanked or underbanked population. Ethical banks may be recognized as a community development financial institution.
What is responsible banking?
Responsible banking or ethical banking typically focuses on three key areas:
Banking access and community development
Environmental impact and climate change
Holistic social responsibility
What is an ESG bank?
An ESG bank focuses on environmental sustainability, social responsibility and ethical governance.
A diagonal spread is an options trading strategy that involves taking a long and short position on the same stock with different strike prices and different expiration dates. It’s a combination of a vertical spread and calendar spread.
Using this strategy can allow the trader to get an early payday if the stock moves in a direction that’s in their favor. The way it works is the trader makes two options trades — either call options or put options simultaneously, with different strike prices and expiration takes.
Diagonal Spreads Defined
Diagonal spreads combine a two-step options trading strategy and are considered an advanced trading tactic. It’s a combination of a calendar spread and a short call or put spread. These positions have different expirations and different strikes which spread off diagonally, hence the name of the strategy.
A calendar spread is when a trader buys a contract with a longer expiration date while going short on an option with a near-term expiration date with the same strike price. But if two different strike prices are used, this is a diagonal spread.
A diagonal spread includes a calendar spread, also referred to as a horizontal spread or a time spread, combined with a vertical spread, because different strike prices are involved.
How Diagonal Spreads Work
A long put diagonal spread involves purchasing a put for some time in the future while selling a put in the short-term. Purchasing an option in the later term tends to be more expensive due to the embedded value of time. On the other hand, the trader sells the nearer term option to lower the cost of the other option. Traders usually use diagonal spreads when they have conviction on a stock’s movement while minimizing the effects of time.
A diagonal bull spread becomes a valuable trade when the price of the stock increases, while a diagonal bear spread increases in value when the stock price decreases.
Diagonal spreads require experience because traders have to account for volatility and have a good sense of timing.
Setting Up a Diagonal Spread
When traders are bullish on a stock, they generally use call options vs. using put options when they’re bearish on a stock.
The most common way to set up a diagonal spread is to buy a back month option that is in the money, which is a futures contract whose delivery dates are further into the future. Then, you sell a front month option with a strike price that is out of the money, which is a contract that has a near-term expiration date.
Setting up a diagonal spread in this manner would constitute a debit spread, though credit spread structures can also be used.
Maximum Loss
When a stock’s price rises, the maximum loss is equal to the premium paid when buying a call. If the stock falls, the maximum loss is the difference between the strike prices plus or minus the option premium paid or received.
Maximum Profit
It can be difficult to anticipate what the maximum gain may be since traders can’t know what the back-month option will be trading at when the front-month option expires as a result of shifting volatility expectations. In a long diagonal spread, the stock price must be near the short strike for a trade to go in the market participant’s favor.
The max profit potential for a short diagonal call spread is the net credit received minus commissions. If the strike price plummets below the short call, the value of the spread will be close to zero and the credit received is profit.
On the other hand, the max profit scenario of a short diagonal put spread is when the stock price soars above the strike price of the sold higher strike put option, as the value of the spread nears zero and the credit received is profit.
Breakeven Point
The breakeven point cannot be calculated, rather it can be estimated. The breakeven price at expiration for a long call is below the strike price of the short call. During expiration of a long call, the breakeven point is the stock price at which the price of the short call is the net credit received for the spread.
Traders are not able to predict what the breakeven stock price will be because it depends on market volatility, which can impact the price of the short call.
Diagonal Spread Examples
In one example, a trader is bullish on ABC stock, currently priced at $300. If the front month is January and the back month is February, the trader may want to purchase a $298 strike call with February expiry, which is in the money. Then the trader sells a $302 strike call with January expiry, which would be out of the money. This would give the trader a four-dollar wide diagonal spread.
In another scenario, a trader is bearish on XYZ stock at a current market price of $129. To set up a diagonal spread, the trader could buy a $132 February put, which would be several dollars in the money. Next, the trader could sell a $126 January put, which would be a few dollars out of the money. This trade would be a six-dollar wide diagonal spread.
Types of Diagonal Spreads
There are different types of diagonal spread strategies traders can use to get their desired outcome. Here are several diagonal spreads traders can try:
1. Long Call Diagonal Spreads
To execute on a long call diagonal spread, traders must buy an in the money call option with a longer term expiration date and then sell an out of the money call option with a nearer term expiration date. Traders can use this advanced options strategy if they are mildly bullish on a stock in the near term and very bullish in the longer term. An ideal set up for a long call diagonal spread is during times of low volatility as you do not want your trade to be disrupted by sharp price swings.
2. Long Put Diagonal Spreads
To execute on a long put diagonal spread, traders must buy an in the money put option with a longer term expiration date and then sell an out of the money put option with a nearer term expiration date that has an out the money strike. Traders typically use long put diagonal spreads to mimic a covered put position.
3. Short Call Diagonal Spreads
A short call diagonal spread is when traders sell a long-term call with a lower strike price and buy a shorter-term call with a higher strike price. A trader benefits from a short call option when the price of the underlying asset falls, thus making this a bearish strategy.
4. Short Put Diagonal Spreads
A short put diagonal spread involves selling a longer-term put with a higher strike price and buying a shorter-term put with a lower strike price. This is a bullish strategy, as the trader benefits if the underlying asset goes up in price, making both options expire worthless and netting the investor the net credit earned at the beginning of the trade.
5. Double Diagonal Spread
A double diagonal spread is when a trader buys a longer-term straddle and sells a shorter-term strangle, a trade that benefits from time decay and an increase in volatility. Traders setting up a double diagonal are long the middle strike calls and puts, which expire further in the future, and short out of the money call and put options with sooner expiries. The ideal outcome for double diagonals is to stay between the two OTM strike prices as they approach expiration.
Risks of Diagonal Spreads
The biggest risk traders have in diagonal spreads is overpaying for the diagonal spread. That said, the maximum risk is the debt a trader incurred to enter the position. If traders pay too much for their diagonal spreads they can remain unprofitable.
Market volatility can be used to the trader’s advantage when using diagonal spreads, although it can also pose a risk to such trades. Depending on the level of volatility, it can substantially change the price of the option and impact the trader’s profit potential. Diagonal spreads are an advanced trading strategy so traders who are experienced in dealing with volatility are best suited to incorporating diagonal spreads in their investment strategy.
The Takeaway
Setting up a diagonal spread correctly is an important part of the profit potential of the strategy, otherwise traders are at risk of losing money. This advanced options trading strategy requires traders to make both long and short trades, either with calls or puts, that have different expiration dates and strike prices. Traders should know these option trades are lined up diagonally from one another.
Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.
Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.
With SoFi, user-friendly options trading is finally here.
Photo credit: iStock/percds
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
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3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. SOIN1121485
Bonds began the day in weaker territory but up until the AM econ data, yields were no higher than yesterday’s highs. After data, it was off to the races for sellers, but not in a straight line. Jobless Claims data was the big issue as it came in much lower than expected and on NFP survey week to boot. The implication is a higher risk of a big NFP number in 2 weeks. Bonds progressively traded that in, but weren’t exactly sure how to go about it given the state of flux for the Fed’s rate hike outlook after the most recent CPI data. Looked at another way, CPI argued for a softer stance from the Fed next week whereas today’s data says “not too soft, Jerome!”
Jobless Claims
228k vs 242k f’cast, 237k prev
Philly Fed
-13.5 vs -10 f’cast, -13.7 prev
Existing Home Sales
4.16m vs 4.2m f’cast, 4.3m prev
08:54 AM
Weaker overnight with Treasuries selling more aggressively than EU bonds. More weakness after data. 10yr up 7.7bps at 3.825. MBS down 3/8ths
10:18 AM
Additional weakness. 10yr up 10.4bps at 3.852. MBS down almost 3/4ths, but illiquidity is magnifying apparent losses.
03:11 PM
Modest gains for MBS heading into the close. 5.5 down 11 ticks (.34). 10yr up 10.8bps at 3.856. MBS outperforming
05:27 PM
MBS closed with only a 3/8ths point loss. 10s underperformed, up 11bps at 3.858.
Download our mobile app to get alerts for MBS Commentary and streaming MBS and Treasury prices.
When the Wander Card debuted in 2021, its issuing bank was quick to point out that it’s not a “typical travel credit card” that involves miles, luxury lounges or lavish vacations. And while all that’s true, note that it charges the same annual fee as credit cards that have those perks.
Issued by Credit One (not to be confused with Capital One), the Wander Card does stand out, however, as one of the only travel credit cards available to those with fair credit — aka average credit — an underserved market that typically includes those with FICO scores of 630 to 689. Most travel credit cards from major players like Chase, American Express and Citi require at least good credit, meaning scores of 690 or higher.
If you meet that threshold and don’t mind paying an annual fee in exchange for valuable travel rewards and perks, you can pass on the Wander Card. You’ll get much more out of other similarly priced travel cards.
Here are five things to know about the Credit One Wander Card.
1. It has an annual fee typical of travel credit cards
The Wander Card carries a $95 annual fee, which is assessed upon account opening.
But those cards offer you a lot more back.
🤓Nerdy Tip
The minimum credit limit on the Wander Card is $500.
2. But it lacks the perks typical of travel credit cards
The Credit One Wander Card comes with the same price tag as other travel cards, but it doesn’t boast the same benefits. For example, the Capital One Venture Rewards Credit Card packs several perks that can offset its $95 annual fee, including a $100 credit for Global Entry or TSA PreCheck. The card also comes with travel insurance and car rental insurance — plus, it gets you two visits to eligible airport lounges per year.
The Wander Card only offers travel accident insurance. On the plus side, it doesn’t charge foreign transaction fees, but that should be a given for any travel credit card that you might take abroad.
3. You’ll get solid rewards on travel expenses
As to be expected in a travel card, the Wander Card offers its highest rewards rates on travel purchases. You’ll earn:
10x points on eligible hotels and car rentals booked using the Credit One Bank travel platform, accessed via the link in the Credit One Bank mobile app or your online account.
5x points on flights, dining and gas as well as on eligible travel not booked using the Credit One Bank travel partner.
1x points on all other purchases.
4. There are flexible redemption options
Credit One Wander cardholders have a healthy menu of redemption options for their points, which never expire as long as the account is in good standing. Points may be redeemed for:
Statement credits. (Cardholders must redeem in increments of 1,000 points.)
Gift cards.
Merchandise.
Eligible activities.
Points are worth 1 cent when redeemed for a statement credit. However, point values may vary when redeemed for gift cards, goods and activities.
Travel redemptions are facilitated by Aspire Loyalty Travel Solutions.
5. It has a modest sign-up bonus
As of this writing, the Wander Card comes with the following sign-up bonus: Earn 10,000 bonus points after spending $1,000 on eligible purchases in the first 90 days from your account opening that can be redeemed for a $100 statement credit, gift cards, or travel.
That’s a decent offer if you have only fair credit; many cards for fair credit don’t offer any sign-up bonus.
But again, if you have at least good credit, you can find far, far more lucrative bonus offers on cards with comparable annual fees. The aforementioned Chase Sapphire Preferred® Card, for instance, offers the following: Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $750 toward travel when you redeem through Chase Ultimate Rewards®.
The so-called TILA RESPA Integrated Disclosure rule, also known as TRID for short, or Know Before You Owe, was expected to go live on August 1st of this year.
But due to an “administrative error” discovered by the Consumer Financial Protection Bureau (CFPB) at seemingly the eleventh hour, the implementation will be delayed two months and instead be rolled out on October 1st.
Those in the industry will probably be relieved, though not without pointing to the double standard the CFPB (the agency behind the new forms) seems to enjoy. Imagine if lenders complied two months late…
The error would have only delayed the effective date of TRID by two weeks, but the CFPB felt pushing the date back even further would benefit consumers and mortgage providers’ families who are expected to be busy dealing with a new school year in August.
The news came as a bit of a surprise seeing that vendors and mortgage lenders had been pushing for a delay to the new disclosures for months.
It almost appears as if the CFPB finally caved to public pressure, though apparently it’s a real federal law that barred them from moving ahead as originally planned.
What Is TRID?
If you’ve heard the acronym TRID recently, you might be wondering what the heck it is. As mentioned, it stands for TILA RESPA Integrated Disclosure rule.
Further broken down, it amounts to Truth in Lending Act and Real Estate Settlement Procedures Act Integrated Disclosure rule. Quite a mouthful I know.
It essentially consolidates four existing disclosures (Truth in Lending forms, GFE, HUD-1) into two new disclosure forms known as the Loan Estimate and Closing Disclosure.
It’s a big deal because the current disclosures have been in use around for about 40 years.
The Loan Estimate, or LE, which contains details such as loan term and projected payment, must be put in the mail and sent to consumers who apply for mortgages no later than the third business day after receiving their application.
For the record, an application is triggered when the lender receives six key pieces of information, including:
[checklist]
Consumer’s name
Consumer’s income
Consumers SSN (to obtain a credit report)
Property address
Estimated property value
Loan amount
[/checklist]
The Loan Estimate must also be placed in the mail no later than the seventh business day before consummation of the transaction.
And it expires 10 business days after it is provided if the consumer does not indicate that they wish to proceed.
The Closing Disclosure, or CD, which details all closing costs and the total payments and finance charges associated with the mortgage, must be provided to the consumer at least three business days prior to loan consummation.
Consummation generally means when the borrower signs loan documents, though this can vary by state.
And if certain changes occur, such as an interest rate increase (APR rises 1/8 for fixed loans or ¼ for ARMs), a prepayment penalty is added, or the borrower switches loan programs, a new three-day waiting period is triggered.
Why TRID?
This new waiting period kind of echoes the existing right of rescission that is in place for most refinance transactions.
Put simply, it gives would-be home buyers a cooling off period to review their loan costs and details before moving forward and signing. As opposed to signing on the spot and feeling rushed or confused.
Additionally, the LE and CD are of the same cloth so borrowers will have an easier time comparing estimated costs and final costs, instead of getting lost in paperwork that looks completely different.
This should help borrowers better understand what they’re being charged and why, and also reduce the chances of getting ripped off.
However, some industry participants worry this could delay loan closings and possibly result in the need for longer lock periods and/or lock extensions, which could ultimately cost consumers.
But lenders can adjust accordingly in order to keep loan closings expeditious. Hopefully they’ll be forced to become more efficient and provide more accurate estimates upfront.
In any case, lenders now have two more months to figure it all out, and in the meantime borrowers will continue to see the old forms.
Lastly, it should be noted that TRID does not apply to HELOCs, reverse mortgages, or mortgage secured by a mobile home (or those not attached to real property).
With record low unemployment and a reasonable cost of living, Ohio packs plenty of amenities for residents. But if you live in Ohio, the large number of FDIC-insured banks can make it tough to choose just one. To help, we’ve pulled together a list of local, national, online, and regional banks operating in the state.
10 Best Banks in Ohio
The best checking accounts in Ohio offer the amenities you need, while also reducing fees. Most banks offer features like mobile check deposits and ATM access, but in-person customer service and access to branches can also make a difference. All the banks listed below are worth considering for their low-fee banking services, whether you’re in Cleveland, Columbus, or one of the many other great Ohio cities.
1. KeyBank
If you’re looking for an Ohio bank that provides a personal banking experience, KeyBank might have everything you need. The standard checking account comes without fees or balance requirements.
The best APY comes with its money market savings account option, which pays up to 5.00% APY. The bank operates branches and ATMs throughout Ohio, and you’ll get expanded ATM access at Allpoint ATMs nationwide.
Fees:
No monthly fees
$20 fee for overdrafts
Balance requirements:
$10 opening deposit required
No minimum daily balance
ATMs:
Fee-free at KeyBank ATMs
Fee-free at Allpoint ATMs nationwide
$3 fee for out-of-network ATM transactions
Interest on balance:
Up to 5.00% APY on money market savings accounts
Up to 4.74% APY on CDs
Additional perks:
2. Huntington National Bank
Huntington National Bank has branches throughout the Midwest, but its headquarters is in Columbus. That gives the bank a strong presence throughout the state, with a bank branch in Columbus, Cleveland, and the Akron areas.
Huntington Bank has a fee-free checking account that even waives fees on overdrafts up to $50. But one of the biggest selling points for Huntington Bank is its interest rates. The 0.06% APY on savings accounts and 5.13% APY on CDs is better than average, particularly for traditional banks.
Fees:
No monthly fees
$15 (waived up to $50)
Balance requirements:
No minimum deposit to open
No minimum balance requirement
ATMs:
Fee-free at more than 1,700 ATMs nationwide
$3.50 out-of-network ATM fee
Interest on balance:
Up to 0.06% APY on savings accounts
Up to 5.13% APY on CDs
Up to 4.18% APY on money market accounts
Additional perks:
Standby Cash serves as an automatic line of credit
Early access to paycheck with direct deposit
3. Chime
Chime is an online banking platform open to consumers throughout the U.S. Ohio residents looking for banking services will get all the basic amenities through Chime’s app. You get mobile check deposit, funds transfers, and a Visa debit card. Like many other online banking options, Chime also gives you cash access through partnerships with ATM providers and retailers nationwide.
Fees:
No fees
No fees for overdrafts
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 fee for out-of-network ATM transactions
Interest on balance:
2.00% APY on savings accounts
Additional perks:
4. Wright Patt Credit Union
Credit unions have competitive rates and perks, but they also come with membership requirements. Wright Patt Credit Union is open to anyone who lives, works, worships, or attends school in 20 Ohio counties.
You’ll have fee-free ATM access at WPCU ATMs throughout Southwest and Central Ohio, as well as through CO-OP ATMs nationwide. But one of the biggest selling points is WPCU’s interest rates. Currently, they’re paying 7.00% APY on the first $1,000 in your savings account.
Fees:
No monthly service fees
$9 fees for overdrafts
Balance requirements:
No opening deposit required
No minimum daily balance
ATMs:
Fee-free at WPCU ATMs
Fee-free at CO-OP ATMs nationwide
No fee for out-of-network ATM transactions
Interest on balance:
Up to 7.00% APY on savings accounts
Up to 4.85% APY on CDs
3.30% APY on money market accounts
Additional perks:
WPCU Sunshine Community Fund supports local nonprofits
Competitive rates on personal loans
5. Chase Bank
Chase is a national bank with locations across Ohio. The Chase Total Checking Account comes with a $12 monthly fee. However, Chase waives it if you have direct deposits of $500 or more each month, keep at least a $1,500 daily balance, or maintain a $5,000 minimum balance across all your Chase accounts.
For younger costumers, take a look at the Chase Student Checking Account, which is designed for students between the ages of 18 and 24.
Fees:
$12 monthly fee (waived with requirements)
$34 overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance
ATMs:
Fee-free at 16,000+ Chase Bank ATMs
$3-$5 out-of-network ATM fee
Interest on balance:
0.01% APY on savings accounts
Up to 3.75% APY on CDs
Additional perks:
$100 checking account bonus
Credit cards offer bonuses and general rewards
6. Woodforest National Bank
Woodforest National Bank is a community bank with branches in Ohio, Alabama, Florida, Georgia, Illinois, Indiana, Kentucky, Louisiana, Maryland, Mississippi, New York, North Carolina, Pennsylvania, South Carolina, Texas, Virginia, and West Virginia.
The basic checking account comes with a $6.95 fee, but Woodforest waives it with monthly direct deposit or a daily balance of at least $100.
Fees:
$6.95 monthly maintenance fee (waived with requirements)
$32 overdraft fee
Balance requirements:
$25 deposit to open
No minimum daily balance
ATMs:
Fee-free at Woodforest National Bank ATMs
$2.50 out-of-network ATM fee
Interest on balance:
Up to 0.50% APY on savings account balances
Up to 4.60% APY on CDs
Additional perks:
7. Fifth Third Bank
Headquartered in Cincinnati, Fifth Third Bank is one of the top regional banks in Ohio. You’ll get fee-free ATM access not only at Fifth Third ATMs but also at more than 40,000 partner ATMs nationwide. Fifth Third Momentum Checking comes with no monthly maintenance fees, and you can avoid overdraft fees by depositing enough money to cover the overage by midnight the next business day.
Fees:
No monthly service fees
$37 overdraft fee
Balance requirements:
No deposit to open
No minimum daily balance
ATMs:
Fee-free at 1,500+ Fifth Third Bank ATMs
Fee-free at 40,000+ partner ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
0.01% APY on savings account balances
Up to 4.75% APY on CDs
Additional perks:
Early access to your paycheck
Extra business day to resolve overdrafts
8. GO2bank
If you haven’t checked into online banks lately, you might have missed how far they’ve come. Not only are their interest rates and fees competitive with most traditional banks, they also offer features that make it easy to skip the bank branch experience. GO2bank offers nationwide access to cash at Allpoint ATMs, as well as cash deposits at more than 90,000 retailers.
Fees:
$5 monthly maintenance fee (waived with requirements)
$15 overdraft fee
Balance requirements:
No deposit to open
No minimum daily balance
ATMs:
Fee-free at Allpoint ATMs nationwide
$3 out-of-network ATM fee
Interest on balance:
4.50% APY on savings account balances
Additional perks:
Up to 7% cash back on gift card purchases
Deposit cash at 90,000+ retailers nationwide
9. Quontic Bank
Another online banking option is Quontic Bank, which began as a community bank in New York City in 2009. Quontic has a wider range of cash withdrawal options than most banks, thanks to partnerships with Allpoint, MoneyPass, and Citibank. But one feature that sets this bank apart is its mortgage loan program.
Quontic has been designated by the U.S. Treasury as a Community Development Financial Institution (CDFI), which allows it to issue loans to borrowers who fall outside the requirements for a conventional home loan.
Fees:
No monthly fee
No fees for overdrafts
Balance requirements:
$100 opening deposit
No minimum daily balance
ATMs:
Fee-free at Allpoint ATMs nationwide
Fee-free at MoneyPass ATMs
Fee-free at SUM Program ATMs
Fee-free at select Citibank ATMs
Interest on balance:
Up to 1.10% APY on checking account balances
4.25% APY on savings accounts
Up to 5.15% APY on CDs
Up to 4.75% APY on money markets
Additional perks:
CDFI lending makes mortgage loans available to a wider range of applicants
Free contactless Quontic ring wearable with new checking account
10. Civista Bank
Local banks have plenty to offer, including a competitive annual percentage yield and personalized customer service. Civista Bank has branches in Northern, Northwestern, Central, and Southwestern Ohio, as well as Southeastern Indiana and Northern Kentucky. If you travel often, though, be aware that fee-free ATM transactions are limited to the service area.
Fees:
No monthly fee
$37 overdraft fee
Balance requirements:
$50 opening deposit
No minimum daily balance
ATMs:
Fee-free at Civista ATMs nationwide
$4.50 fee for out-of-network ATM transactions
Interest on balance:
Rates not publicly disclosed
Additional perks:
Bottom Line
With so many Ohio banks, the options can be overwhelming. It can help to narrow down the features you need. From personalized banking services to help with investment accounts, choosing a bank account is a personal decision. Compare rates and features between financial institutions until you find the right bank to meet your needs.
Michigan State University Federal Credit Union said this week that it will make its first-ever expansion outside of Michigan by opening five branches in Chicago next year.
The $7.5 billion-asset credit union in East Lansing said the institution’s strategy has been to locate branches where its members live, and more than 10,000 Michigan State University students and alumni now reside in Chicago.
“Many MSU alumni move to Chicago post-graduation,” President and CEO April Clobes said in an interview. “In addition, the incoming MSU student class has a high number from Illinois.”
The branches will be located in the Lakeview, Lincoln Park, Wicker Park, Gold Coast and Old Town neighborhoods.
Clobes said MSUFCU has been evaluating the Chicago region for some time, and the right mix of retail locations near where its existing and eligible members reside became available.
Post-covid, there were more available location options to consider, she said.
MSUFCU is the second largest credit union in Michigan behind only the $12.4 billion-asset Lake Michigan Credit Union in Caledonia.
MSUFCU has offered services digitally to members outside of Michigan for many years, including selling mortgage products in 18 states across the country.
But Clobes said physical locations grow membership and existing member balances faster than digital services alone.
“Our members and eligible members are able to do all of their business with the credit union online, yet when we move into a market, the members appreciate having a branch location for complex transactions and financial education,” she said.
Whether digital or physical, credit unions need to be able to differentiate themselves to their members and ensure they have the product mix and delivery channels.
While members make nearly 2 million visits a year to MSUFCU branches, they log in to its mobile app 36 million times a year.
“Their branch visits are purposeful for when the member would like to be assisted by our team versus self-serve. Physical locations help to support a growing community through employment and economic activity as well,” Clobes said.
Michael Fryzel, a Chicago attorney and former chairman of the National Credit Union Administration, called the entry into the Chicago market by Michigan State University FCU an “excellent move.”
“The potential exists for substantial membership growth for the credit union. There are thousands of MSU graduates and family members who live and work in the city and surrounding suburbs,” Fryzel said.
Michigan State University FCU has more than 350,000 members. Clobes said historically when the credit union adds a branch to a digital-only region, it grows about 30% in both balances and new members in that area.
She anticipates the Chicago market will see similar growth.
“Our annual new member growth is between 5% and 6%, and we anticipate that moving to a new market area will help us maintain this level of membership growth through better retention of existing members as well as attracting new eligible members,” Clobes said.
So will the Chicago expansion serve as a springboard for moves into more out-of-state markets?
Clobes was noncommittal.
The credit union already has plans for growth in new markets and in the areas it already serves in Lansing, Traverse City Grand Rapids, Oakland County and metro Detroit.
“We will evaluate the success of these locations to determine possible additional locations in the Chicago suburbs,” she said. “While we are moving into the Chicago market, we are still branching throughout Michigan where our members are concentrated without a convenient branch location.”
MSUFCU’s plans continue the broader industry pattern of credit unions continuing to build branches. There were 20,694 branches among federally insured credit unions in March 2023, up 87 branches from a year ago, according to recent data from the National Credit Union Administration.
The typical options investor is trying to leverage options trading to speculate on directional moves in the prices of underlying assets. However, there are more sophisticated traders who would like to profit from other characteristics of options.
To pursue these trading strategies, investors need to minimize the effect of price changes and create portfolios that profit from and are more sensitive to these other factors. Delta neutral approaches allow investors to create these portfolios.
What Is Delta?
Delta is one of the Option Greeks and measures how much an option will change in price, given a $1 change in the price of the underlying asset. By definition, the delta of the underlying asset is always 1.
What Does Delta Neutral Mean?
Delta neutral means that a position’s value will not change when there are small market price changes. By holding a combination of assets and options, or combinations of various call and put options, a trader can create a portfolio with an overall delta of zero (in actual practice, very close to zero).
Traders use delta neutral strategies to minimize the effect of price changes while aiming to profit from shifts in implied volatility, the time decay of options, or simply to hedge against price movements.
How Does Delta Neutral Function?
A portfolio’s overall delta is determined by the sum of the deltas of its individual positions. Let’s take a closer look at the delta in options and securities.
Basic Mechanics
A trader holding shares (“going long”) benefits one-for-one from increases in the stock price. The delta for long shares is 1.
Investors short a stock will experience losses one-for-one as the share price rises, but they will benefit in the same amount when it falls. The delta for short shares is -1.
In the options trading world, a long call option has a delta of 0 to 1, while a long put option has a delta of –1 to 0.
Deep in the money long call options are most likely to feature a delta near 1. Deep out of the money long call options will have a delta near 0. At the money long call options typically have a delta near 0.5.
Deep in the money long put options typically have deltas near -1. Deep out of the money long puts have deltas near 0 and at the money long puts have deltas near -0.5.
Deltas values are for each individual security held and need to be adjusted based on your actual holdings. If you own 200 shares of stock, the delta for this position is 200. If you own an at the money call options contract, the delta for this position would be 100 x 0.5 or 50 due to options representing 100 shares of the underlying asset.
If you are writing (“going short”) options, the deltas values are reversed. If you write a call option with a delta of 0.75, then the delta for the position would be -75. Similarly, the delta for shares sold short is -1 per share.
The investor must also be aware that any delta neutral portfolio will only be neutral over a range of asset prices. An option’s delta is always in flux as it moves in and out of the money. A portfolio must be constantly adjusted to maintain delta neutrality – many delta neutral trades must be executed.
An Example of Delta-Neutral in Use
A trader might employ a delta neutral trading strategy when they are long shares of stock but are concerned about a near-term pullback in its price. Assume the trader owns 100 shares of XYZ stock at $100 per share. A long stock position has a delta of 1. Multiplied by 100 shares, the position has a total delta of 100.
The goal of a delta neutral strategy is to use a combination of calls and puts to bring the portfolio’s net delta to 0. One possibility is to purchase at the money put options that have a delta of -0.5. Two of these put option contracts have a total delta of -100 (-0.5 multiplied by 200 options). Recall that an options contract represents 100 shares of stock.
Here, the $100 strike is the delta neutral strike. As the underlying price moves away from $100, the delta of the portfolio will move.
Combining the deltas of 100 shares together with 2 long put option contracts with a -0.5 delta yields a delta neutral portfolio.
Stock position delta = 100 shares x delta of 1 = 100
Long put position delta = 2 contracts x 100 shares/option x delta of -0.5 = -100
Portfolio delta = stock position delta + long put position delta
Portfolio delta = 100 + -100 = 0 or delta neutral
The net position is protected from losses by being long put options while still having exposure to upside from the long stock position. Of course, there is a cost to purchasing put options.
A diagram might help illustrate what is delta neutral.
Profit & Loss Diagram Using the Above Example (Not Including the Put Option Cost)
Profiting From Delta-Neutral Trading
It is possible to profit from changes other than price movements in the underlying stock. For example, an options trader can use delta neutral strategies to benefit from declining or rising volatility. Vega is the Options Greek that tells a trader how much the price of an option will move in response to changes in volatility.
Delta neutral strategies can also be used to profit from time decay or – as in the earlier example – to hedge an existing long stock position. Writing options allows you to benefit from the effect of time decay, but there is a risk of assignment. If the underlying stock price moves significantly, the contracts could be assigned to you.
Shorting Vega
Shorting vega is a more advanced options trading strategy. A delta neutral approach can be used to benefit from collapsing volatility.
You might look to short volatility after a period of extreme movements in the market or a single stock. The key is to short vega when implied volatility is still high and you expect it to come back down.
When implied volatility is high, you pay a significant premium to be long options. You can take advantage of expensive options when implied volatility is high by selling options while still being delta neutral. The risk is that implied volatility levels continue to jump, which can lead to losses on a short vega play.
Waiting for Collapse in Volatility
A short vega position relies on the implied volatility on the underlying security to drop in order to turn a profit. It might take patience for implied volatility to drop to historical norms. To remain delta neutral, other positions might have to be put on to mitigate the risk of a change in the underlying stock price.
Pros and Cons of Delta Neutral Positions
Some of the pros of crafting a delta neutral portfolio have been highlighted, but there are downsides as well. Having to closely monitor your portfolio can be a burden, while trading costs mount as you constantly layer on or reduce hedges to keep near delta neutral.
Pros
Cons
Profit from variables other than the price movement of the underlying asset
Requires frequent trades, which could be costly, to maintain a delta near 0
Traders hold stock for the long run while protecting against near-term declines
Deltas are constantly changing resulting in being over- or under-hedged
Delta Neutral Straddle
A delta neutral straddle uses a combination of puts and calls to keep the position’s delta near zero while having exposure to volatility changes.
For example, if XYZ stock trades at $100, and it’s at the money call has a delta of 0.5 and it’s at the money put has a delta of -0.5, you can buy the put and call with the goal of selling them after implied volatility jumps. With this delta neutral long straddle strategy, your delta is effectively 0 but you are long volatility.
A delta neutral short straddle is an options trade that seeks to profit from minimal changes in the underlying stock price and a large drop in implied volatility. So, the reverse of a long straddle can be used when you believe implied volatility will drop.
Other options trading strategies used to profit from changes in volatility and time decay are calendar spreads, diagonal spreads, iron butterflies, iron condors, among others.
The Takeaway
Building and maintaining a delta neutral portfolio can be a challenging task, but profiting from time decay and changes in volatility can make it worthwhile and profitable.
Delta neutral trading can also hedge your portfolio from short-term declines while continuing to hold stock for the long-term.
Qualified investors who are ready to try their hand at options trading, despite the risks involved, might consider checking out SoFi’s options trading platform. The platform’s user-friendly design allows investors to trade through the mobile app or web platform, and get important metrics like breakeven percentage, maximum profit/loss, and more with the click of a button.
Plus, SoFi offers educational resources — including a step-by-step in-app guide — to help you learn more about options trading. Trading options involves high-risk strategies, and should be undertaken by experienced investors.
With SoFi, user-friendly options trading is finally here.
FAQ
How do you make money with a delta neutral strategy?
You profit from a delta neutral option strategy when there are changes in a stock’s variables other than its share price. Changes in implied volatility create opportunities to go long or short volatility while being agnostic to the stock price’s change. You can also benefit from time decay by selling options while being delta neutral.
What is a delta neutral strike?
A delta neutral strike marks the price at which a portfolio is precisely delta neutral. In practice, it is more of a theoretical price rather than an exact level. When the underlying asset price moves up or down from the delta neutral strike, its delta will stray from zero; it will take additional hedging trades to get back to delta neutral.
How can you calculate the value of your delta neutral position?
To calculate your position’s delta, simply multiply each security’s delta by your position size. For example, one call option contract with a delta of 0.75 has a delta of 75 (0.75 x 100 options per contract). While being long 100 shares of stock with a delta of 1 has a delta of 100 (1 x 100 shares).
You combine the deltas of all positions in your portfolio to determine your overall delta. At that point, you can trade options to make your portfolio delta neutral.
Photo credit: iStock/Delmaine Donson
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Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes. SOIN223504
Anyplace, a marketplace startup that offers people find flexible-term furnished housing, aims to draw digital nomads and other temporary residents to the fold. A recent email outreach from their PR company (EZPR) prompted the following early assessment.
Started back in 2015 with angel capital from East Ventures, Anyplace works with extended stay hotels, serviced apartments, furnished rentals, and co-living companies to supply turn-key mid-term accommodations, has just raised another $2.5 million. The round, headed by UpHonest, FundersClub, East Ventures, and others, should extend the startups reach.
The startup, which prides itself on its B2C core logic, is being billed as a predictability value over Airbnb and other shared property innovations. With a growing roster of longer-term stays from San Francisco to Guadalajara in Mexico, the company says they’re looking to expand to Europe and Asia by 2020. This may, in fact, come to pass, but “listing” 50+ properties in 9 cities for any rental marketplace should not be seen as a market takeover. The market for such an endeavor exists, but here’s where I see Anyplace in the current scheme of things.
The website traffic numbers at Anyplace do not speak of massive volumes of business people relocating at Anyplace offerings, but this says nothing for the company’s mobile app numbers. But, 6 reviews at the iTunes app store do indicate slow uptake, however. A slim Facebook (under 500 likes) presence, along with one social post per 3 months does not a modern digital age game changer make. Ditto for Twitter (111 followers), Instagram (35 subscribers – no posts), and LinkedIn (No posts). The lack of effort here is symbolic of companies I’ve seen hit the TechCrunch “dead pool” before.
In addition, the fact the Anyplace team is searching for backend and full-stack engineers willing who are founding members does not bode well for the extended development this far into the funding. What this means to me is that the CTO and co-founder Kouichi Tanaka is probably doing most of the app and backend development with a very small team. And while this is not a bad thing, it is not $2.5 million dollar investment level staffing. Looking at LinkedIn profiles for Anyplace employees I found the front-end user interface developer, a freelancer from Germany named Martin Broder, iOS engineer Arpit Agarwal, and front-end developer, Michal Ittah of the 17 employees listed for the startup.
I hate pouring cold water on a PR outreach since I once owned one of Europe’s most successful boutique hotel tech PR companies, but there’s some homework left to do at Anyplace, PR and otherwise. Short version, Anyplace needs to step up its game now. The fact they closed this round in 2018 and are only now reaching out for media is another negative for anybody who looks close. Given the massive potential for Alt Living innovations, Anyplace has a big potential, so my cautions should be taken with a grain of industrial salt.
This report at NFX reveals the positive side for Anyplace’s founder and investors. Lifestyle shifts, non-traditional transactions, technology empowered markets, and so forth – make Anyplace a good prospect. The downside is the lack of commitment of both funding and human resource. One thing I really like about this startup is its B2C heart – which flies in the face of Airbnb and the customary access economy giants. In my former business, hoteliers were literally freaking out over lost business to Airbnb. Anyplace-like value can mitigate at least some of this lost revenue. But that’s far off in my view, at a point when this startup has $100 million in funding and 25,000 Facebook fans.
As it stands, Anyplace needs a solid product, a solid marketing team, and a tech PR firm listed at O’dwyer’s if they can afford it. A final note, an old associate of mine, Jason Calacanis of East Ventures, has invested in some of the most successful startups in Silicon Valley history including; Uber, Facebook, and many others. One of Silicon Valley’s most ethical and intelligent investors, I’m surprised Anyplace is not farther along. Jason, get these boys some help, will you?
Phil Butler is a former engineer, contractor, and telecommunications professional who is editor of several influential online media outlets including part owner of Pamil Visions with wife Mihaela. Phil began his digital ramblings via several of the world’s most noted tech blogs, at the advent of blogging as a form of journalistic license. Phil is currently top interviewer, and journalist at Realty Biz News.
Now that the riveting headline has your attention, you may be dismayed to learn that it really was only a boring, placeholder of a day. Bonds started fairly flat, made some gains at the 8:20am CME open, and then remained fairly flat for the rest of the day. 10yr yields drifted inconsequentially higher whereas MBS might be better described as truly sideways. Attention has clearly turned toward next week’s Fed rate hike and press conference. If anything, it’s somewhat reassuring to see bonds forego the urge to capitulate on a summertime Friday following yesterday’s range breakout, but there’s no sense in counting chickens until next Wednesday afternoon at the very earliest.
09:10 AM
Relatively flat overnight. Stronger after 8:20am CME open. 10yr down 4bps at 3.82 and MBS up 6 ticks (.19).
12:14 PM
Sideways to slightly weaker so far. 5.5 coupons now up only 3 ticks (0.09). 10yr yields down 2.7bps at 3.831.
04:01 PM
No change from previous update in MBS. 10yr yields are another 1bp higher at 3.841.
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