Check cancellation, also known as a ‘stop payment request’, is a procedure initiated by an account holder instructing their financial institution to prevent payment on a check that has yet to be processed.
There are a variety of reasons why one might choose to cancel a check. From preventing a fraudulent check cashing, misplaced personal checks, to stop payments to an erroneous recipient, each scenario can merit a cancel request.
Risks and Limitations of Canceling a Check
Before initiating a stop payment, it’s important to understand the risks and limitations associated with this action. The most immediate consideration is the stop payment fees. Most banks and credit unions charge a fee for this service.
Additionally, there’s a time limitation for canceling a check. If the check has already been cashed or deposited into the recipient’s account, you may not be able to stop the payment. Therefore, it’s essential to act in a timely manner to ensure the effectiveness of your request.
How to Cancel a Check
Canceling a check can feel like a daunting task, especially if it’s your first time doing so. Fortunately, the process is relatively straightforward. Here’s what you need to do to cancel a check:
Verify the Check’s Status – Has It Cleared Yet?
Before initiating a stop payment request, your first step should be to determine whether the check in question has already cleared. A check that has cleared has been cashed or deposited by the recipient and the funds have been deducted from your account.
You can verify the status of your check by reviewing your transaction history through your online account or mobile banking app, or by calling your bank’s customer service. If the check has already cleared, it’s too late to stop the payment. However, if it hasn’t, you can proceed with the stop payment process. This crucial step can save you from unnecessary stop payment fees if the check has already cleared.
Contact Your Bank or Credit Union
The first step in canceling a check is to contact your financial institution promptly. Whether you bank with a credit union or a traditional banking institution, you’ll need to initiate the stop payment process as soon as you realize the need to cancel a check. Time is of the essence when it comes to preventing the payment of a potentially lost, stolen, or miswritten check.
Most financial institutions offer a variety of ways for you to contact them. This includes phone, in-person visits, online banking portals, or even mobile apps.
Information You’ll Need
Regardless of the method you choose to cancel a check, you’ll need specific information to initiate the process. Be prepared to provide the following:
Account Number
Your account number is essential in helping the bank or credit union identify which account the check is drawn from. You can typically find your account number on your bank statements, within your online account, or at the bottom of your checks.
Check Number
The check number helps the financial institution identify the exact check you wish to cancel. It can be found in the top-right corner of the check and is also printed at the bottom, right next to the account number.
Amount and Payee
You’ll need to know the exact amount the check was written for, as well as who the check was made out to, i.e., the payee. These details ensure that the bank cancels the correct check.
Confirmation of Stop Payment Request
Once you’ve provided the necessary information and initiated the stop payment request, your bank or credit union will typically provide a written confirmation of your request. This may be given in person, sent via mail, or provided digitally, depending on your chosen method of request.
This written confirmation serves as proof that you’ve requested the stop payment. It will typically include details such as the date and time of the request, the check number, and the stop payment fee (if applicable). Make sure to keep this document in a safe place for future reference.
How to Avoid Needing to Cancel a Check
While knowing how to cancel a check is important, preventing the need to do so in the first place is even more critical. Implementing safe practices when writing and issuing checks and using secure alternatives can greatly minimize potential problems.
Safe Practices When Writing and Issuing Checks
Confirm the Recipient’s Details
Before writing a check, double-check the recipient’s details. Confirm that you have spelled their name correctly and that you have the correct address if you’re mailing the check. This can prevent checks from going to the wrong address or being unable to be cashed because of a misspelled name.
Encourage Prompt Cashing
Once you’ve written the check, encourage the recipient to cash or deposit it as soon as possible. The longer a check is uncashed, the higher the risk of it being lost or stolen. Also, an uncashed check can make accounting and balance tracking more challenging, as you need to remember to account for that uncashed check in your available balance.
Use of Electronic Payment Methods
Electronic payment methods are a convenient and secure alternative to physical checks. They reduce the risk of checks being lost or stolen and eliminate the need to write checks manually. Here are a few options:
Direct Deposit
Direct deposit is a popular method for paycheck distribution but can also be used for other types of payments. It eliminates the need for a physical check and ensures that the funds reach the intended recipient’s bank account directly.
Online Banking Services
Most banks and credit unions now offer comprehensive online banking services, which include the ability to send money directly from your bank account to another. These transactions are secure and can be done from the comfort of your home or on the go. Many financial institutions even offer the ability to set up recurring payments, making it an excellent option for paying bills.
Mobile Payment Apps
Mobile payment apps have soared in popularity in recent years. Services like Venmo, PayPal, and Zelle allow users to send and receive money quickly and securely. These apps can be linked directly to your bank account or credit card and provide a convenient way to transfer funds without needing to write a check.
How much does it cost to cancel a check?
The cost to cancel a check varies by financial institution. Some banks may waive stop payment fees for premium account holders, such as those with America Advantage Relationship Banking or Citi Priority. However, for regular checking accounts or money market accounts, the stop payment fee can range anywhere from $15 to $35.
How long do you have to cancel a check?
The time frame to cancel a check depends on the specific bank or credit union. However, most financial institutions recommend that you initiate a stop payment request as soon as you realize a check needs to be cancelled. The sooner you can report a lost or stolen check, the better your chances of preventing unwanted transactions.
Can you cancel a cashier’s check?
Stopping payment on a cashier’s check is generally more complicated than stopping a regular check. Because cashier’s checks are guaranteed by the issuing bank, they are often treated as cash. However, if a cashier’s check is lost or stolen, the bank may issue a stop payment after a waiting period, typically 90 days.
Conclusion
Canceling a check is an essential skill for anyone who writes checks. It requires understanding your bank account policies, knowing how to navigate your financial institution’s website or customer service, and being proactive about spotting any potential issues with your personal checks.
Remember to keep a close eye on your transaction history and balance in your checking account or high-yield savings accounts. This will help ensure your hard-earned money stays right where it belongs. Remember, it’s not just about knowing how to cancel a check, but also knowing how to prevent the need for cancellation in the first place.
During the summer, there’s an abundance of high-quality fruits and vegetables. You get better quality for lower prices than you do buying off-season produce during the cold winter months. I always want to freeze this moment so I can enjoy the fruits of the season all year long. So I do.
Every year, I freeze some produce, and I can some, and I use a variety of methods to make the bounty last. Last week, I wrote about smart ways to acquire your seasonal produce. Today, I’m going to talk about how to use it to get the best value for your food dollar.
Eat well First (and this is obvious): Eat a lot. When fresh vegetables are in season, I try to shift my diet towards dishes that focus on the food being grown in my own backyard and on local farms. That’s more challenging than it sounds. There might be nothing better than a fresh garden tomato. But twenty pounds of fresh tomatoes can become overwhelming even for the most avid fan.
The thing is, when something is in season locally, it’s all pretty much ready at once. All the peaches ripen within a few weeks of each other. Every ripe tomato you’re going to grow all year will happen in late summer. No matter how much you love a food, you can get tired of it.
If you’re growing a vegetable garden or participating in a CSA, you’ll have an abundance of those veggies whether you feel like having them for dinner or not. To keep up your appetite, I recommend investing in a few good cookbooks and exploring the food blogosphere. There are books and blogs dedicated to celebrating vegetables in season. They’ll keep fresh ideas coming your way along with all the fresh vegetables.
Some of my favorites include:
Farm to Fork by Emeril Lagasse. This book organizes the recipes by the type of food you’re cooking. There’s a whole section on herbs, and another on leafy greens, etc. This makes it easy to find inspiration for what’s coming up in your garden. All the recipes I’ve cooked from it have been delicious.
Greens, Glorious Greens by Johnna Albi and Catherine Walthers. This book is exactly as advertised, an entire cookbook devoted to green leafy vegetables. It’s my go-to resource in early summer, when my farm share is providing me with two heads of lettuce a week plus an array of kale, chard, spinach and other greens.
The New Moosewood Cookbook by Molly Katzen. Really any cookbook by Molly Katzen will stand you in good stead. She’s the master of crunchy vegetarian cooking, and her cookbooks are fun and approachable. They’re full of simple recipes anyone can make, that rely on whole healthy ingredients.
In addition to my bookshelf, I often look online for inspiration, and find it at Smitten Kitchen, 101 Cookbooks, and Eclectic Recipes.
Preserve the harvest Of course, you can’t eat everything your garden or local farm has to offer. You wouldn’t want to. One of the joys of summer’s abundance is preserving the produce so you can have it in the cold winter months. I especially love canning my own peaches. Opening up a jar of home-canned peaches in January is like opening a jar of sunshine. I can taste the summer.
To preserve my garden harvest, I like to:
Throw a canning party Home canning is fairly easy, and doesn’t require much in the way of specialized equipment. Yes, you can invest in a canner, but you can also do the job with a large pot. Canning parties are a fun way to spend a summer afternoon, and make the work lighter for everyone. You’ll need glass jars, lids and a bulk amount of whatever you want to can. We always order a box of tomatoes and a box of peaches from the farm we get our CSA share from. Add those to the tomatoes from our garden and there’s more than plenty.
In addition to simply preserving peaches and tomatoes to use later, I’ve had great luck making tomato sauce and salsas at canning parties. Everyone brings their own recipes and we each get a few jars of different homemade sauces. It’s a fun way to try out new things.
If you’ve never done any canning before, Food In Jars is a great resource to get started. They’re a great resource for any home canner, actually, with lots of creative ideas for everyone from beginners to experts.
Fill my freezer Some things work better frozen. We always make a few pints of fresh pesto with our garden basil and freeze it. A great way to do preserve pesto is to put it in ice cube trays. That way, you can thaw just the small amount you want to use. The ice cube trick works great for many herbs. Just chop them up, mix with a little water and freeze the mixture in ice cube trays. We’ve enjoyed basil, parsley, cilantro and mint this way.
Dry things out I grow a lot of herbs in my garden. I mentioned freezing my basil and cilantro, but I also like to dry out herbs for use throughout the year. I simply gather them in bunches and hang them in the kitchen. When they dry, I put the dried leaves into little glass jars in my spice cabinet. This works well for thyme, oregano, mint, sage, lemon balm and many other herbs.
I’ve also experimented with making my own “sun-dried” tomatoes by slicing my garden’s cherry tomatoes and putting them on cookie trays in the oven at a low temperature. It takes about four hours, but the tomatoes do dry up beautifully and make a great addition to salads and pasta dishes. I don’t know how long they keep because we always eat them right away.
Ferment Making your own sauerkraut and pickles is another easy way to preserve garden vegetables. You can make great dill pickles at home, in your fridge or even on your kitchen counter. There’s no need to stop with traditional cucumber pickles, either. I’ve pickled radishes, hot peppers, green beans, and even eggs. Wild Fermentation is my go-to resource for these projects. Sandor Katz can teach you how to ferment just about anything.
Today we’ll check out “Blue Spot Home Loans,” which derives its name from a combination of Blue the Cat and Spot the Dog.
Blue is apparently always on the hunt for tips and tricks to help you better understand how a mortgage works, while Spot is eager to fetch you a good mortgage rate and sniff out the perfect loan program.
Let’s learn more about this Denver area direct-to-consumer mortgage lender that says it’s proud of its “highly-competitive rates.”
Blue Spot Home Loans Fast Facts
Direct-to-consumer mortgage lender launched in 2017
Offers home purchase loans and mortgage refinances
Headquartered in Greenwood Village, Colorado
A division of Cherry Creek Mortgage Co.
Currently licensed to do business in 20+ states
Most active in their home state of Colorado
Also do a lot of business in California and Texas
Blue Spot Home Loans is a direct-to-consumer mortgage lender located near Denver, Colorado that offers home purchase loans and mortgage refinance loans.
They are actually the online lender division of their larger parent company Cherry Creek Mortgage, and have a pretty nifty website to boot.
Think of them as a more no-frills, straight to the point digital lender for those looking to complete a mortgage refinance quickly from a remote location.
Other than their corporate headquarters in Greenwood Village, Colorado, they don’t have any physical branches you can visit.
That should suit most folks these days as it’s now quite common to work with an online mortgage lender, pandemic or not.
One neat feature about Blue Spot Home Loans is the fact that their loan officers are salaried as opposed to commissioned, meaning they shouldn’t pressure or hassle you into a mortgage.
Per their website, they’re currently licensed in 20 states (but it might be more now), and seem to be most active in California, Colorado, and Texas.
How to Apply with Blue Spot Home Loans
You can call them up or send an email to get pricing and apply
Or simply visit their website and begin the application process there
Their loan officers are salaried-employees so you shouldn’t feel pressured
They offer a digital mortgage application and online loan portal where you can check your loan status 24/7
You’ve got a few options to get started with Blue Spot Home Loans. You can either call or email them to get in contact right away, or head over to their website.
If you visit their website, you can check out daily mortgage rates by clicking on “today’s rates,” or alternatively fill out a short lead form and wait for a loan officer to call you back.
They also give you the option to apply immediately via the website. First you need to register and then you can access the online loan portal from any device, such as a desktop computer, tablet, or smartphone.
Their digital mortgage application allows you to link financial accounts, scan and upload necessary documents, and eSign disclosures.
If you’re a prospective home buyer, they say you can get pre-qualified for a home loan in under 10 minutes.
Once your loan is submitted, you can check loan status and get a to-do list if any additional conditions must be met before closing documents are prepared.
Blue Spot Home Loans claims it can close loans fast, in as little as 14 days if no events beyond their control (home seller, appraisal or title/escrow issues) take place.
Loan Programs Offered by Blue Spot Home Loans
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Conventional loans backed by Fannie Mae and Freddie Mac
Jumbo home loans that exceed the conforming loan limit
FHA loans
VA loans
Like all other mortgage lenders, Blue Spot Home Loans offers both home purchase loans and refinance loans.
They work with first-time home buyers and existing homeowners looking to refinance their mortgage, whether it’s a rate and term refinance or a cash out refi.
They lend on all property types, including single-family homes, condos/townhomes, and multi-unit properties (1-4 units).
You can get financing for a primary residence, second home, or investment property.
In terms of loan type, you can get a conforming loan backed by Fannie or Freddie, or a jumbo mortgage up to $3 million.
Additionally, they’ve got FHA loans and VA loans, which offer low-down and no-down payment options, respectively.
It’s unclear if they offer USDA loans or home renovation/construction loans, but if not, they could probably refer you to their parent company who does.
Blue Spot Home Loans Mortgage Rates
One advantage to using Blue Spot Home Loans is the fact that they openly advertise their mortgage rates and lender fees on their website.
So instead of having to call a loan officer, or provide your valuable contact information, you can simply cruise over to their website and generate your own free mortgage rate quotes on the fly.
They have a nifty mortgage rate table that lets you plug in various loan scenarios to compare different loan programs and closing costs at once.
You can toggle between purchase rate and refinance rates, and see both 30-year fixed and 15-year fixed rates.
Assuming you’re happy with what you see, simply click on “next,” at which point you’ll be asked to enter your contact information in order to be linked up with a mortgage loan officer.
From what I saw, their mortgage rates looked pretty competitive relative to other online mortgage lenders.
They say if you do happen to find a better rate, to give them a chance to beat the other lender’s quote.
While you can see rates and total closing costs on their website, it’s unclear what exact lender fees they charge as they aren’t listed individually.
So it’s unclear if they charge a loan origination fee, application fee, and so on. Be sure to get those details when you speak to a loan officer about a mortgage rate quote.
Blue Spot Home Loans Reviews
On Google, the company enjoys a 4.7-star rating out of 5 from just over 200 customer reviews.
They’ve got an even better 4.9-star rating on Bankrate from about 150 reviews, with 97% saying they would recommend this lender.
And on Zillow, Blue Spot has a 4.85-star rating from nearly 100 reviews, which is pretty close to perfect as well.
Remember, you can see individual loan officer reviews on Zillow if you want to fine-tune and seek out someone specific based on their past performance.
Lastly, they’ve got a 4.2 out of 5 on LendingTree from about 20 reviews, with a 79% recommendation rate. Not as good, but a pretty small sample size.
Their parent company is Better Business Bureau accredited (since 2014), and currently has a perfect ‘A+’ rating.
All in all, Blue Spot Home Loans could be a good choice for a borrower with a straightforward loan scenario looking to fund a mortgage quickly without a sales pitch.
Blue Spot Home Loans Pros and Cons
The Pros
They publicize their mortgage rates and lender fees
They use salary-based mortgage consultants
You can apply for a home loan directly from their website
Offer a digital mortgage application and borrower loan portal
Today we’ll check out “HomePlus Mortgage,” a San Diego-based direct lender that strives to provide the highest level of customer service along with the most competitive mortgage rates out there.
You may have come across them on a mortgage comparison website as they’re quite an active advertiser with Bankrate, LendingTree, and Zillow.
The company appears to be living up to their goal of providing exceptional customer service, with numerous awards, accolades, and countless 5-star reviews over their 20-year history.
Let’s learn more about them to determine if they could be a good choice for your home loan needs.
HomePlus Mortgage Fast Facts
Direct-to-consumer mortgage lender
Established in 1999, headquartered in San Diego, CA
Offers home purchase financing and mortgage refinance loans
Currently licensed in nine states
Do not charge an application or rate lock fee
Branch locations in AZ, CA, and TX
HomePlus Mortgage was founded back in 1999 in current CEO Phil Pizzino’s home office. Since then, they have become a billion-dollar loan originator.
They are a direct-to-consumer mortgage lender, meaning they operate call centers staffed with loan officers, processors, and underwriters who work remotely with homeowners.
Like most lenders, they offer both home purchase loans and refinance loans, with the latter likely their specialty.
At the moment, they are only licensed in nine states nationwide, including Arizona, California, Colorado, Florida, Idaho, Montana, Oregon, Texas, and Washington.
It’s not clear if they plan to expand to additional states, or if they’re happy with the areas they serve currently.
Aside from their corporate headquarters in San Diego, they’ve also got branches in Carlsbad, CA, Dana Point, CA, Mission Viejo, CA, Lake Forest, CA, Phoenix, AZ, and Dallas, TX.
How to Apply with HomePlus Mortgage
They say they’ve got a proprietary online mortgage application
But first you’ll need to request a free mortgage rate quote on their website or call them up to discuss pricing
They’ll begin with a one-on-one consultation to determine your mortgage needs
Then you can apply for a home loan online via their secure borrower portal
To get started, you can either request a free mortgage rate quote via their website, or call them up for a one-on-one consultation with a loan officer.
In either case, you’re going to need to speak with a loan officer before you apply for a mortgage, as there doesn’t seem to be an option to do so on your own.
While I do favor mortgage lenders that let you go it alone, it’s probably wise to discuss loan pricing before you commit to a loan application.
So your first move will likely be a telephone call – if you like what you hear, they will probably provide you with a link to the application.
While it’s unclear what technology they utilize, they say they’ve got a proprietary online mortgage application.
This means you should be able to apply online and manage your loan via their secure loan portal from there on in.
Ideally, you’ll be able to complete most tasks paperlessly, including scanning/uploading documents, eSigning disclosures, and so on.
I assume they make it easy to apply and manage your loan given their exceptional customer feedback.
Loan Options Available at HomePlus Mortgage
Home purchase loans
Refinance loans: rate and term, cash out, and streamline
Conforming loans backed by Fannie Mae and Freddie Mac
HomePlus Mortgage appears to offer most of the major loan types out there, including home purchase loans and refinance loans.
So they could be suitable for both first-time home buyers and existing owner looking for a rate and term refinance, cash out refinance, or a streamline refinance.
You can get a conventional loan backed by Fannie Mae or Freddie Mac, or a government-backed mortgage such as an FHA loan or VA loan.
They don’t appear to offer USDA loans or jumbo loans, which is a slight negative if you want/need either of those.
In terms of loan programs, you can get a fixed-rate mortgage such as a 30-year or 15-year fixed, or an adjustable-rate mortgage, including a 5/1 and 7/1 ARM.
HomePlus Mortgage Rates
One slight drawback to HomePlus Mortgage is the fact that they don’t publicize their mortgage rates.
So if you visit their website, you won’t see daily rates, nor will you be able to compare them online.
However, because they do advertise quite a bit on many mortgage comparison websites, you might come across them if you’re actively shopping your home loan.
I’ve seen their rates at times in comparison tables and they appeared to be pretty competitive relative to other lenders listed.
And it appears they often structure their loans with limited fees, or as a no cost refinance.
But because they don’t let you see rates without speaking to a loan officer first, it’s probably best to call them and get pricing before you apply.
Also be sure to ask about all lender fees charged, such as a loan origination fee – they say they don’t charge an application fee or rate lock fee, which many other lenders do.
However, they could still charge an appraisal fee upfront, which typically works the same way in it being a quasi-deposit from the customer.
Your best move is probably to call them to get pricing, then shop around, and if they offer the best combination of rates and fees, you can proceed to apply online.
HomePlus Mortgage Reviews
On LendingTree, HomePlus Mortgage has an excellent 4.9 out of 5-star rating from more than 1,500 customer reviews. They’ve also got a coveted 100% recommended rating.
Both interest rates and fees/closing costs were rated “excellent” by their customers, as was responsiveness and customer service.
In the past, the lender has earned accolades such as landing in the top-10 for customer service on the LendingTree platform, and was rated the #1 multi-national lending provider.
On Zillow, they have a 4.95-star rating out of 5 from almost 900 reviews – you can filter reviews by loan officer, so take advantage of that if you’re looking for someone specific to work with at the company.
On Bankrate, the company has a perfect 5.0-rating from nearly 300 customer reviews, with 99% saying they’d recommend this lender. They also earned a “Select Lender” distinction in 2020.
Over at Yelp, they have a slightly less favorable 4.5-star rating out of 5, which is obviously still a good score.
Lastly, they are an accredited business with the Better Business Bureau (since 2001), and currently have an ‘A’ rating.
In closing, HomePlus Mortgage sounds like a good option for existing homeowners looking to refinance since they appear to be a low-cost online mortgage lender, and their customer service is top-notch.
Since they have limited branch locations, they may not be the best for home purchase loans as you might need more hands-on attention, but they do have a real estate agent division as well.
HomePlus Mortgage Pros and Cons
The Pluses
They have a proprietary online mortgage application
Offer most major loan programs
Do not charge an application fee or rate lock fee
Say they can close loans in as little as 21 days
Incredible customer reviews across all ratings websites
FNBO Amtrak Amtrak Guest Rewards Preferred card is offering a signup bonus of 30,000 points when you spend $1,000 within the first three billing cycles.
You also get 2x coupons:
2 round-trip companion coupons
2 one-class upgrades
2 station lounge passes
Card Details
Annual fee of $99 is not waived
ClubAcela pass for access to ClubAcela, Amtrak Metropolitan Lounge or First class
Card earns at the following rates:
3 points per $1 spent with Amtrak
2 points per $1 spent on all other qualifying travel and dining purchases
1 point per $1 spent on all other purchases No foreign transaction fees
5% Amtrak Guest Rewards point rebate when you book your Amtrak redemption
Our Verdict
Previously the bonus was 40k points +1 x coupons. This might be a better deal for those that can use the coupons. Might be worth waiting to see if a dummy booking comes along with an additional $100 statement credit but I don’t think we have seen that since FNBO became the card issuer.
The gig economy was just beginning to blossom pre-pandemic. Between 2010 and 2020, the number of gig workers or side hustlers increased by 15%. Unlike many aspects of life, which stagnated during the pandemic, freelancing only grew. Statista reported that 73.3 million people work as freelancers in the U.S. right now, an increase from 57.3 million pre-pandemic.
Freelancing has tremendous benefits for many people. Freelancing or gig work can provide:
Flexibility
A better work-life balance
Increased income potential
But it can come with some financial complications, too.
As a freelancer, you’ll need to manage cash flow so that you’ll have money in your account to pay your bills. You’ll be responsible for paying your own taxes. And, with that in mind, you’ll want to track expenses carefully so that you can deduct the costs of running your freelance business from your bottom line.
That’s where having a business bank account can come in handy.
Why You Need a Bank Account If You Have a Side Hustle
According to tax laws, you don’t have to have a business bank account to run a side hustle or a freelance business. You can file your taxes using your Social Security number and receive a 1099 form as a sole proprietor.
But as your business grows, you may want to incorporate under a tax ID number. You may choose to register as a corporation like an S-Corp or, more commonly, a limited liability corporation or LLC. This can get confusing, so it’s important to speak to a tax account before you take this step.
If you incorporate your business, you’ll need a business checking account to keep your personal finances separate from your business expenses. You would pay yourself a salary out of your business account and use your personal bank account to pay for your daily living expenses, entertainment, and anything that isn’t considered a business expense.
Benefits of Business Accounts
Most small business owners, freelancers and side hustlers prefer to open a business account even if they aren’t incorporated. Having a dedicated business checking account makes it easier to track your business income and expenses, which makes filing taxes – and making quarterly estimated tax payments – easier. If you ever get audited, you’ll have a clear record of your personal and business finances.
Plus, if you do any sales and marketing for your freelance business, your business debit card can often pique people’s interest. You’d be surprised how having a debit card with your business name on it can help you generate leads in odd places, whether you’re at your favorite bar or paying for groceries.
If you’re ready to open a separate business account, it’s important to find one that will meet your needs.
Freelancer vs. Side Hustler vs. Entrepreneur
Before you choose a business account, you may be wondering about the differences between entrepreneurs, freelancers, and side hustlers. Which category do you fit in?
These are all loose terms to describe anyone who owns their own business or is self-employed. Self-employed is a tax designation, which means you are a 1099 contractor for other companies. This term would apply to most freelancers and side hustlers.
On the other hand, if you start your own business, you might consider yourself an entrepreneur. The dictionary defines an entrepreneur as someone who starts a business and is willing to take a financial risk in hopes of great success.
A freelancer may also take financial risks, including leaving a steady paying job. In a lot of cases, whether you describe yourself as an entrepreneur, small business owner, freelancer or side hustler is up to you.
Compare the Best Freelancer Checking Accounts
In most cases, business owners, freelancers and side hustlers can all benefit from a good business bank account. Read on as we compare the best business checking accounts for freelancers, gig workers, and entrepreneurs.
1. Lili Bank: Overall Best Bank for Freelancers
Lili calls itself “the one-stop shop for all your small business financial needs.” An online financial services company that provides business banking, accounting for freelancers, invoicing, and tax support, Lili is backed by Choice Financial Group Inc.
As a US-based bank, Choice is a member FDIC, which means your funds deposited in Lili are protected by the federal government up to $250,000 per account.
What sets Lili apart as one of the best bank accounts for freelancers?
In addition to all the other services it offers to business owners, Lili has no minimum balance requirements, no monthly fees for basic checking, and a network of 38,000+ fee-free ATMs nationwide. You can also open a business savings account and earn 1.50% APY at Lili.
Lili’s basic business checking account has no monthly fee, expense categorization for your purchases, and the ability to generate quarterly expense reports.
Alternatively, for $9 per month, you can earn 1.5% on savings, get a Visa business debit card with cashback rewards, overdraft protection up to $200 and tax, invoicing software, and accounting support.
Lili integrates with third-party services that gig workers may use, including Etsy, Shopify, Venmo, QuickBooks, and your PayPal business account.
When you compare the prices of other invoicing and online accounting services, you may find that Lili offers tremendous value for the money as one of the overall best banks for gig workers you can find.
Bluevine: Best for Business Interest Checking Account
Like Lili, Bluevine is a financial technology company. It is backed by Coastal Community Bank, Member FDIC to protect your deposits. The Bluevine business checking account offers 2.0% interest, which sets it apart from competitors.
To take advantage of the interest, you’ll need to either spend $500 per month with your Bluevine Business Debit Mastercard or receive $2,500 per month in customer payments to your Bluevine business checking account.
There are no monthly fees or minimum balance requirements and you can make unlimited transactions with no fees. Like Lili, Bluevine also offers other services for business owners.
If you are looking for a business interest checking account with value-added services, consider Bluevine. Your account integrates easily with QuickBooks, with no fees involved. Plus, you can set up sub-accounts to easily manage your money, add authorized users, and pay bills via ACH or wire transfer from your Bluevine account.
While many credit providers offer business credit cards, Bluevine is one of only a few business checking accounts that offers a business line of credit. You may qualify for a credit line of up to $250,000, with a rate as low as 6.2% interest. This interest rate is much lower than the national average of 20.46% for business credit cards right now, as reported by The Balance. Plus, you could get approved in as fast as five minutes, according to the Bluevine website.
For entrepreneurs seeking to purchase tools or resources, or freelancers in need of business equipment, Bluevine’s line of credit could provide you with the financial security you need to grow. Take note that you’ll need a credit score of 625 or more to qualify and $40,000 in monthly revenue. This is probably not a service for a gig worker, but for a seasoned entrepreneur.
Even so, it’s never too early to get started with a business checking account, especially one with no monthly fees.
Amex: Best for Debit Card Rewards and Bonus Offer
American Express is a renowned name in business and consumer rewards credit cards. But you might not be aware that the company also offers a business checking account with 1.30% APY on balances up to $500,000.
American Express also has no monthly maintenance fees, no fees on domestic ACH payments, and no fees at MoneyPass ATMs. The American Express Business Blueprint app makes it easy to manage your account.
Amex stays true to its credit card rewards roots with a rewards business debit card. Earn 1 Membership Reward point for every $2 on eligible purchases. You can combine points earned with Membership Rewards points accrued with other Amex cards, and use those points for travel, gift cards, or cash back. You can also convert those points into cash deposits directly into your new business checking account.
Amex’s bonus offer stands out to us. Earn 30,000 Membership Rewards points after you deposit $5,000 or more within the first 30 days of account opening, maintain that balance for the next 60 days, and make five or more qualifying transactions within those first 60 days.
NBKC Business Checking: Best for No Fees
If finding a business bank account with no fees is most important to you, a nbkc Business Checking account might fit the bill. The bank offers unlimited transactions with no fee, no minimum balance requirements, no monthly fees, and no opening deposit requirements either. You can also have out-of-network atm fees reimbursed for up to $12 per month.
If you are a freelancer just getting started or just looking to supplement your full-time income with a side hustle, you’ll find nbkc bank a low-cost and convenient option among free business checking accounts.
NBKC lacks some of the bells and whistles of the top choices on our list. You won’t get integrations with common business software or invoicing and accounting support. But a nbkc business checking account is free with your personal account and provides an easy way to keep your business and personal funds separate.
Novo: Best for Payment and P2P Money Transfer App Integration
Novo is another choice with no monthly maintenance fee, no monthly fee, free ACH transfers, and no minimum balance needed. Like many of the business bank accounts on this list, Novo is a financial technology company. It’s backed by Middlesex Savings bank, a Member FDIC, which means your money is protected up to $250,000 per account.
Novo is the best for business owners looking for an easy way to process payments or transfer funds. You’ll get free ACH transfers from another checking or savings account and refunds on all out-of-network ATM fees.
Novo integrates with many P2P payment apps, including Square, Shopify, and Stripe, as well as Etsy, eBay, Amazon and more.
When you use Novo Boost, you can get paid 95% faster through Stripe, or two business days before the funds would ordinarily appear in your account.
Plus, it’s quick and easy to open an account online, with approval as fast as 10 minutes – rather than days with some other online bank accounts.
Axos Bank: Best for New or Scaling Businesses
Many freelancers don’t think about opening a business account until they have incorporated their company to make that transition from self-employed to entrepreneur. If this sounds like you, Axos Bank could have the best bank accounts for you. The online bank is offering business owners who incorporated after June 2020 an extra $200 in their new business bank account.
If you aren’t newly incorporated, you can earn a $100 bonus.
Like many of the best business accounts on this list, Axos has no monthly fee, no minimum monthly average balance to hold, ATM fee reimbursements for all domestic transactions, and no minimum opening deposit. The bank accepts cash deposits or you can transfer money from other checking accounts via ACH.
Unlike many online banks, Axos offers business owners a dedicated relationship manager to help point you to the products and services that are best for your growing business.
Chase Business Complete Banking: Best for Credit Card Processing
As the largest U.S. bank, with assets of $3.31 trillion, Chase is a traditional bank that offers all the convenience of online banks. This includes personalized service, stellar fraud protection, and a host of other features and benefits we’ve come to expect from any financial institution.
The Chase Business Complete Banking account is ideal for entrepreneurs, offering unlimited transactions and no monthly fee (if you meet certain requirements). These requirements are relatively easy to meet with a $2,000 minimum balance, $2,000 in purchases on your Chase Ink Business credit card, a link to a Chase Private Client Checking account, or $2,000 in deposits from QuickAccept or Chase eligible merchant services.
The best aspect of Chase Business Complete Banking is the ability to process credit card transactions and receive funds the same day through Chase QuickAccept. (Additional fees apply.)
You can open an account with no minimum deposit to get started.
Wave Money Business Banking: Best for Free Business Banking
Wave Money integrates a free checking account with easy bookkeeping for freelancers and solopreneurs. Wave is best for those who want to improve cash flow with instant pay and want bookkeeping tools to make tax prep easier.
Wave has no monthly fee or transaction fees, so you keep more of what you earn. You can use the mobile check deposit feature for convenience, and make ACH transfers easily. There are no transaction limits with Wave, and you can also connect third party payment processors.
Wave is another fintech company, with banking provided by Community Federal Savings Bank, Member FDIC. That means your funds are insured for up to $250,000 per account.
TIAA Bank: Best for Business Investments
Besides checking accounts, TIAA Bank offers a variety of banking products for entrepreneurs and gig workers that sets it apart.
If you’re considering business savings accounts, TIAA offers CDs and money market accounts to earn interest at a rate higher than you may get with another account. Currently, TIAA’s one-year business CD offers an APY of 3.75%.
TIAA’s checking accounts offer easy online banking and mobile check deposit, along with personalized service from a business solutions specialist.
LendingClub Bank Tailored Checking: Best for Earning Checking Account Rewards
The LendingClub Bank tailored checking account for freelancers is one of the few banks on our list where you can earn interest on your checking balance, plus 1% cash back rewards when you use your debit card.
Account holders earn 1.5% APY on balances up to $100,000 and 0.10% APY on the portion of your balance that exceeds $100,000.
LendingClub Bank reimburses fees if you use an out-of-network ATM. The bank also supports QuickBooks, Quicken and Mint for budgeting and bookkeeping. You can also send digital invoices and get paid directly to your LendingClub account, making LendingClub Bank Tailored Checking one of the more robust and affordable online banks for freelancers.
Just make sure to maintain an average daily balance of at least $500 to have the monthly fee waived.
How to Choose the Best Bank Account for Your Business
When you’re evaluating business bank accounts, you’ll want to consider your needs and the features that are most important to you.
It should go without saying that you want an account with no monthly fees or no monthly fees. Unless you’re an established business owner, you may also want no minimum balance requirements. You don’t want to get saddled with fees if your business runs into cash flow problems or you have a down month.
If you run a high-volume business, look for a bank account with no transaction limits, no in-network ATM fees, and unlimited ATM fee rebates.
Need a way to manage contracts, collect invoices, and help with taxes?
Your business bank can represent much more than just a place to deposit cash and a means to pay your bills. Many of the best bank accounts on this list also offer freelancer invoicing, tax assistance, and ways to manage contracts.
Budgeting and Savings Features to Look For
When you’re a freelancer, it’s convenient to have an easy way to track your expenses and budget for not just expected costs, but surprise opportunities or financial emergencies.
Just as you should have a personal bank account established with emergency savings, you want a business savings account. In fact, you may want multiple business savings accounts or the ability to divide money into various buckets for known costs – like taxes – and unexpected expenses, such as car repairs or a new phone.
Some budgeting and savings features are nice to have, such as an interest-earning checking account and cash back on debit card purchases.
Why We Chose Lili as the Best Business Bank Account
Lili graces the top of our list because the fintech company offers so many value-added services for entrepreneurs that it’s virtually a one-stop shop for freelancers. However, the other banks on our list for best business accounts have their own benefits you might want to consider.
Should You Use Different Banks for Personal and Business Finance?
If you already have a separate bank account for your personal finance, there is something to be said for opening a business account through the same bank. You may get extra perks and benefits or waived fees. Best of all, it’s easier to use one app to manage all your personal and business banking.
But if you opt for an online financial services company, instead, it is typically easy to transfer funds between accounts. Also, companies like Lili and Bluevine specialize exclusive in business accounts, which means they have services tailored specifically to your needs.
Bottom Line
A lot of factors go into choosing the best bank account for your business checking needs. Knowing your must-haves, nice-t0-haves, and those features that don’t really matter to you can help make the decision easier.
FAQs
What is a business bank account?
A business bank account is a dedicated account separate from your personal accounts that you use to deposit cash, checks, or other customer payments earned through your business. You should also use your business checking account to pay for business expenses.
Do You Need a Business Bank Account if You’re a Freelancer?
Freelancers are not required by law to have a separate business banking account. But if your business is incorporated as an S-corp, C-corp, or LLC, you are required to keep your business and personal accounts separate.
Should You Have a Separate Bank Account If You’re a Freelancer?
Even though it’s not required by law, it’s a good idea to have an account separate from your personal checking account to help you keep track of business income and expenses.
What Makes a Business Bank Account Ideal for Freelancers?
Business bank accounts often have many of the same features as some of the best personal bank accounts. That would include low or no minimum balance requirements, no monthly maintenance fee, no transaction fees, and no hidden fees.
You may also look for features like mobile check deposit, unlimited electronic deposits, and low wire transfer fees if you have a lot of customers, clients, or vendors outside the U.S.
Methodology: How We Select the Best Bank Accounts for Freelancers and Side Hustlers
We evaluated the best bank accounts for freelancers based on the ability to earn interest, monthly maintenance fees, minimum balance requirements, the ease of making cash deposits, customer service, and more.
Some banks are better for freelancers who don’t maintain a high balance or only have a few transactions per month. Entrepreneurs with fast-growing businesses looking to scale may prefer a business checking account with unlimited transactions and the ability to accept credit card payments through the same bank.
Some business owners may want to be able to integrate their Quickbooks accounting system through their bank.
We have banks on this list designed for small business owners, freelancers and side hustlers at every stage of business growth.
Lenders offer borrowers to lock the mortgage rates for a period between the offer and the closing date, which vary according to their policies.
However, during periods of instability, locking the rate for a long period puts downward pressure on lenders’ margins, hurting earnings. That’s been playing out over the last few months due to massive rate increases. And more are expected to follow – the Federal Reserve signaled six additional rate hikes this year, with at least three more in 2023.
The latest weekly Freddie Mac PMMS survey, released Thursday, showed that the average purchase mortgage rate touched 4.67% early last week, up 25 basis points from the week prior and the highest reading since December 2018. Black Knight‘s Optimal Blue OBMMI pricing engine, which considers refis and data from the Mortgage Bankers Association (MBA), reported that rates on Monday averaged 4.86%, up around 80 basis points in one month.
“The sharp rise of the 2-year swap rate along with the rapid increase in credit spreads of the securitization market have led to an unusually fast increase in non-QM rates that the industry has not seen before,” Angel Oak’s spokesperson said.
Angel Oak Mortgage Solutions announced the change in its lock policy on March 31, which caused “confusion and stress” among brokers and borrowers, according to a company’s post on its LinkedIn page.
The company retracted the changes the following day, saying it was in the “process of making the appropriate system updates to reflect the original information of borrower’s loans.” After that, the spokesperson for the company told HousingWire on Tuesday that it will honor all current locks, with the new policy valid only for loans moving forward.
With mortgage rates now hovering around 5%, compared with 3% or lower for much of last year, lenders are investing more in non-QM products. UWM recently rolled out bank statement loans targeting the self-employed as well as investor loans. Likewise, Homepoint is unveiling bank-statement loans as well as non-QM cash-flow loans for real estate investors. (Several other big nonbanks have investor loan products as well.)
Investors’ appetite for non-QM loans also increases in a higher interest rate landscape, as they are seeking for more return on their investments. So far, this year, the non-QM volume numbers are impressive: year to date as of March 25, a total of 29 non-QM securitizations were completed or underway valued at $12 billion, compared to 17 deals valued at $4.8 billion over the first full three months of 2021, the most recent Kroll Bond Rating Agency’s data show.
The American Pet Products Association reports that a majority of households in the US have at least one pet, but many of them do not have a pet insurance policy that could take care of their medical and grooming needs. As a renter, you may not need to invest in a separate pet insurance policy, though.
Out of all the pet owners in the US, 59.4% own a dog, 34.6% own cats, and the remaining own a range of exotic pets. Thankfully, pet insurance for renters may not only cater to cats and dogs but birds and a range of other exotic animals as well. If you have a pet, you should always consider going through the renter’s insurance policy before choosing a property to understand what your insurance covers and what you may have to pay on your own.
The idea is that the renter’s insurance should ideally cover almost every type of injury and property damage for your pet. In essence, this isn’t just insurance for your pet, but also for the property. In this article, we will take a closer look at what pet insurance is for renters and the potential benefits that you (and perhaps the landlord) can reap from it.
What’s Ahead:
What is Pet Insurance for Renters?
Essentially, renters’ insurance for pets will cover any damage to the property or those around that your pet may cause. This means that if your pet decides to rip up the drywall for some reason or accidentally hurts someone visiting the property, the pet insurance will cover it. But how does it benefit you?
Renters Insurance for pets also covers any health expenses for your pet to make sure that it is in good health and not a threat to the property or those around it. This may include vet checkups or emergency surgery for almost any type of pet. Of course, the more exotic your pet is, the higher your premiums will be.
This means that renters’ insurance not only covers you against any damage to your property but also covers any health implications and injuries that your pet and your stuff may suffer.
Understanding The Difference Between Renters Insurance & Pet Insurance
It is common to mistake pet insurance for renters’ insurance if you are not careful enough. Pet health insurance policy and renters’ insurance policy are two very different policies and therefore offer different types of liability coverage. These policies are both designed to cover different forms of damage. Let’s take a closer look at the two.
What is Pet Insurance?
The concept of pet health insurance policies is quite straightforward; it includes covering a wide range of pet health liabilities, including many elective and emergency procedures. The goal is to reduce the burden of expensive treatments when they become dire, and in turn, you pay a small premium every month.
Coverage options vary with respect to the policy you opt for. For example, many plans may not cover pre-, while others may not cover alternative care (acupuncture, chiropractic procedures, neutering or spaying, and more). There are also some all-inclusive plans that cover almost every type of service and therefore have higher premiums.
Pet insurance plans are much like human healthcare plans and have tiered coverage. Pet owners decide whether they want to invest in pet insurance or not and what the insurance covers.
What is Renters Insurance?
Renters insurance is, in essence, pet liability coverage. It includes pet liability coverage against personal property and damage to others’ property or health because of your pet. Insurance companies deal with your landlord directly and the cost of premiums is usually added up to the rent or maintenance charges pet owners have to pay.
The policy helps deal with the potential liability exposure that your pet introduces as a renter. For example, according to the American Veterinary Medical Association (AVMA), there are over 4.5 million dog bites every year. You may end up having to pay damages as well as for their medical treatment against the dog bites.
As a renter, if there is a dog bit instance, the chances are that, depending on your renter’s insurance policy, the medical payments and damage will be paid directly by the insurance provider. You will only need to continue making insurance premium payments.
What Sort of Pet Liability Coverage Does Renters Insurance Offer?
In most instances, renters’ insurance policies offer protection against property- and injury-related pet liability. If you have a pet, renters’ insurance is a straightforward way to cover your legal risk in case your pet ever causes injuries or property damage to other people.
Apart from dog bites, you may be protected against cat scratches, macaw injuries, snake bites, insect infestations, and a range of exotic pets’ damage as a tenant. Individual renters’ insurance policy can also be acquired directly by the tenant, hence improving the tenant-landlord relationship.
Renter’s Liability Insurance Coverage
You can expect your renters’ insurance policy to offer a wide range of pet liability insurance, depending on the insurance companies you choose to go with. Normally, these include:
Personal Property Insurance
This clause usually covers any home content and personal belonging liability coverage.
General Liability Insurance
Also known as general pet liability insurance clause, this liability coverage includes any damages you or your family members have to pay as a result of your pet’s activities.
Additional Liability Insurance
This pet liability coverage includes any expenses needed to create a livable environment in your home/apartment as a renter. Insurance covers these ‘additional living expenses’, including those associated with your temporary living space or motel. Of course, the deductible varies based on your premiums and between different insurance companies.
Coverage Limits of Your Renters Insurance Pet Liability
Your liability coverage limit will depend entirely on the insurance company you choose. It is important to note that renters’ insurance liability coverage is usually limited by different insurance coverage policies and insurance company rules (which vary from insurance company to company).
Usually, renters’ insurance policies allow you to choose your own limit. Pet liability insurance can range from anywhere between $50,000 to over $100,000. These costs include legal costs and/or damages. Once you have reached your limit, you will need to deal with the remaining liability yourself – perhaps out of your personal property.
Impact of Insurance Premiums
As mentioned above, the premiums, as well as the renter’s insurance coverage, will vary from pet owner to pet owner as well. Take dog breed, for example. Pit bulls and rottweilers are among the most dangerous breeds and may require more coverage. For this, you may have to pay higher renters’ insurance premiums as well.
Renters’ insurance companies usually consider the type of pet you have very carefully. When you purchase renters insurance, you should also consider the chances of a dog bite claim or risk of damage (and aggressiveness) your pet poses. Remember, a $100,000 renters’ insurance amount may seem too much, but it really isn’t for any major damage.
This is particularly true if a pet damages someone else’s property and still remains a threat to others. Normally, the average cost for damages and repair in a bite or minor injury is $35,258.14. However, if the incident is severe, your renters’ policy may not be enough to cover the damage.
Will My Renter’s Insurance Liability Policy Always Help Me?
Note that your liability policy may not always protect you. Your renters’ policy may only offer coverage in cases that relate to unforeseen damage only, i.e., damage that could not have been avoided, even with due care.
For example, assume there is a pre-existing condition that causes something as small as your pet tortoise to become overly aggressive. If you knew about it and yet did nothing to protect others or the property in general, renters’ insurance doesn’t cover the damage.
Exotic Pet Coverage
Furthermore, if your exotic pet has already damaged something and you did not try to reduce the extent of further damage (and your pet injures someone), there is a very good chance not only will there be no financial protection, but your typical premiums will also rise.
Similarly, not all pets are covered by base renters’ insurance plans. In some cases, you may need additional coverage for your rental property. Insurance companies may choose to pay part of the damage, legal fees, or legal expenses incurred without additional coverage or may make no payment at all (based on the policy’s limits).
How Much Does Renter’s Insurance Cost?
According to the Insurance Information Institute (III), renter’s insurance premiums have fallen by 0.6% recently. The cost of a pet insurance plan may vary between different companies and even an insurance agent. Depending on the pet covered, the average cost in the US is between $13 to $17 per month.
Different Plan Coverage
These basic plans may offer $30,000 to $100,000 against the renter’s insurance. Of course, as the amount and circumstances of insurance coverage you need increase, so will the typical insurance premiums. Take an umbrella policy, for instance. An umbrella policy may offer large deductibles against property damage liability, but will also cost between $35 to $100 per month.
While renters’ insurance is not required by law, it can immensely help when you are trying to protect yourself and your pet against liability or those around you.
Learn more about renter’s pet insurance by reading more!
While a majority (67%) of Americans own a pet, not even half of them own pet insurance. When considering what percentage of pet owners have pet insurance, it is important to note that we aren’t just talking about dogs, but cats, mice, hamsters, chickens, and a wide range of other animals as well.
According to a 2021 industry report by the North American Pet Health Insurance Association (NAPHIA), there were over 3.45 million pets in the US that have pet insurance. This might seem significant, but if you consider that there are somewhere over 144.6 million people with pets, it means that only about 0.26% actually own pet insurance.
What’s Ahead:
Why are there so few pet insurance owners?
This is not because of a lack of pet insurance companies, though. There are countless pet insurance policies that offer accident and illness coverage for dogs, cats, horses, birds, and more. However, what makes most people stop is that people often think that they don’t need pet insurance. While it isn’t an essential service to you, it may actually save your pet’s life when the time comes!
In this article, we will look at how many people in the US have invested in a pet insurance policy for veterinary care and why the issue is so prevalent.
Why go for pet health insurance?
Before understanding the statistics, it is important that we look at why simple pet industry expenditures can end up saving your pet’s life. Whether you are a dog owner or cat owner, these pet industry expenditures may seem wasteful, but if the terrifying situation of money shortage for health coverage arises, it may mark the difference between receiving medical care and the loss of an animal’s life.
Avoiding tough decisions
You may have to make the tough decision of having to put your dearly beloved down when it starts to suffer. To stop your loved one’s suffering, instead of spending thousands of dollars, you may then have to go for economic euthanasia. This is the worst-case scenario that pet owners may have to face without pet health insurance plans.
Keeping your pet safe
This isn’t the only reason why you should go for insurance coverage, though. According to the Insurance Information Institute (III) and American Veterinary Medical Association (AMVA), the primary reason people invest in an insurance policy is to avoid uncertainty about their pet’s medical expenses. You get to keep your pet expenditures in check with insured cats, dogs, and other pets.
Pet ownership & insurance
The concept of a pet health insurance policy is like buying health insurance for yourself. It has several restrictions to keep in mind. In fact, if you choose an insurance provider poorly, there is a very good chance that the average annual premium may be higher for your pet than for yourself or even your homeowner’s insurance (yet another reason I always recommend Lemonade).
Looking at the costs
On average, veterinary care may vary between $140 to well over $2,000 during the first year alone! In severe cases, most pet owners may have to pay over $20,000 during a dog’s lifetime, while horse care can go as high as $500,000, on average. Here is a representation of the estimated medical costs that you may have to bear throughout your pet’s life.
Average Pet Care Costs
Service
Estimated Costs
Grooming
$50-$700 per year
Flea/tick control
$40-$250 per year
Spaying
$100-$250
Neutering
$50-$100
Dental services
$50-$300
Vaccinations
$10-$1,000
Allergy tests
$200-$450
Heartworm tests
$50-$100
Infections
$40-$250
Digestive problems
$200-$1,200
Skin masses/shedding
$100-$2,000
These costs are steadily rising as the number of pet owners increases and inflation in general, pet care costs are rising significantly over the years. In fact, 47% of pet owners report being in some sort of debt because of their pets. In times like these, pet owner’s insurance can play a major role in helping you manage your finances better.
Pets as family & rising percentage of pet insurance
The cost of vet visits is steadily on the rise. Along with the pet ownership increase during COVID-19, this has fueled growth in the pet insurance market. Many people now think of their pets as family members. This is because of the rise in the number of pet adoptions following the coronavirus lockdowns. Furthermore, because of this adoption, 85% of dog-owners and 76% of cat-owners consider their animals to be members of their families.
Increase in insurance plans
As a result, a record-breaking 3.45 million pet owners signed insurance policies for their pets in Q1 of 2021. This is the fifth consecutive year that the insurance rates have grown, but so has the pet insurance industry as a whole. Every year, the average costs against accident and illness coverage rise by ~24%.
Looking at the numbers
NAPHIA reports that almost 99.9% of insurance policies for pets are in North America, with an estimated 3.101 million pets being insured by 2020 and 3.453 million by 2021. Out of these:
5 million include dog insurance policies
53 million include cat insurance
The remaining is for birds, horses, exotic animals, and even insects (yes, there are insurance policies for insects as well).
Dog vs. Cat insurance policy
This shows that dog insurance is much more common compared to any other animal insurance. From 2019 to 2022, the average number of people and cost of insurance has increased by 22.5% for dogs and 17.1% for insured cats. Combined, this reflects a 19.8% increase in the number of pet insurance holders.
The monthly insurance premiums for pet insurance vary with respect to the pet type as well. For example, the average premium for a German Shepherd stands at $34.42 per month in the US (lowest premium), while for rarer breeds, the premium may go higher than $100. This is why the adoption of insurance premiums is still not as common.
Pet insurance policy by plan type
According to a report by GM Insights, more than 80% of dog owners go for accident and illness insurance plans, while the remaining go for accident-only plans. The former is a comprehensive coverage plan that covers almost all of the out-of-pocket expenses that you may have to make for pet care. These may include:
Diagnostic tests
Major and minor surgeries
Emergency care
Digestive issues
Urinary tract infections
Broken bones
Fight or bit wounds
Burns
Fever care
Major health issues
Euthanasia, and more.
In most cases, insurance plans do not cover grooming or hygiene-related issues.
Accident-only coverage
Accident-only coverage, on the other hand, only includes pet injuries. Of course, these plans are relatively more cost-effective than extensive plans. However, they are more common as well. In 2021, for example, accident-only plans accounted for 92% of all policies purchased (a decrease from 97% in 2020).
Global pet insurance market overview
In 2020, the pet insurance industry was valued at $4.5 billion. The market has grown considerably at a compounded annual growth rate (CAGR) of 14.3%. According to this forecast, the market is expected to reach $16.8 billion by the start of 2030 due to the rapid adoption of newer pet insurance plans for all sorts of animals.
Primary focus
While the primary focus of the industry still remains dogs, by volume, if we look at newer pet insurance policies being bought, you will find that the number of cat policies being issued is picking up pace. For cats, accident-only pet insurance is not as beneficial as accident and illness coverage.
This is because cats get into fewer accidents than dogs but tend to have an equal number, if not more, of health issues. By 2023, the percentage of pet owners having pet insurance is expected to be at least three times the number today.
If you’re a resident of the Beehive State, you know how quickly Utah has grown and changed. According to the U.S. Census Bureau, Utah was the fastest-growing state from 2010 to 2020, reaching a population of 3.27 million people.
For families with children thinking about college, Utah has several well-known schools, including the University of Utah and Brigham Young University.
Whether you’re new to the state or have lived there all your life, you may be pleasantly surprised by the cost of higher education in Utah. And with the state’s financial aid programs, you may be able to reduce your expenses even more.
The cost of education in Utah
Despite its rapid growth, Utah is still a relatively small state in terms of population and has a smaller number of colleges and universities than states with similar populations such as Arkansas, Kansas and Iowa. There are 22 public and private non-profit institutions in the state that issue two- or four-year degrees.
Generally, the cost of attending a four-year college in Utah is significantly cheaper than it is in other states. Here’s the total average cost of attendance in 2020-21 — including tuition, fees and room and board — for different education options in the state:
Public four-year school: The average cost for in-state residents at Utah’s public four-year schools was $14,653, about 31% less than the national average of $21,337.
Private non-profit: The average cost of attendance at private four-year schools in Utah was $15,911, about 65% less than the national average of $46,313.
Community college (in-state): The average cost of attendance — not including room and board — at community colleges for Utah residents was $3,989, about 14% higher than the national average.
Why are four-year schools, especially private colleges and universities, so inexpensive in Utah? Part of the reason is that the state offers several substantial financial aid programs that can make the cost more manageable, and the state’s higher ed funding hasn’t decreased as significantly over the years as it has in other places.
Another contributing factor is the state’s large Mormon population; 55% of the adults in Utah are members of The Church of Jesus Christ of Latter-day Saints. Some of the private schools in the state, such as Brigham Young University and Ensign College, are affiliated with the Mormon church, and charge members half the tuition rate that non-members pay.
Financial aid options in Utah
To be eligible for in-state tuition rates and state-based financial aid, you must be a qualifying resident living in the state for at least 12 months before registering as an in-state student. You can prove residency with one of the following items:
Attended a Utah high school for the past 12 months.
Utah voter registration dated before the college application date.
A driver’s license or identification card issued several months prior to the application date.
Vehicle registration prior to the application date.
Evidence of employment in the state prior to the application date.
Proof of payment of Utah state income taxes for the previous year.
A rental agreement showing the student’s name and Utah address for at least 12 months prior to their application date.
Utility bills showing the student’s name and Utah address for at least 12 months prior to their application date.
In Utah, undocumented students, including Deferred Action for Childhood Arrivals (DACA) students, are eligible for in-state tuition and state financial aid programs if they meet the other residency requirements. Students must also sign an affidavit stating that they will file an application to legalize their immigration status or be willing to file when they’re eligible.
🤓Nerdy Tip
Laws, requirements and financial aid programs can change. Visit the Utah System of Higher Education website or contact your college’s financial aid department for the most up-to-date details.
Utah does operate a number of programs that could make postsecondary education more affordable, including:
529 plans.
Scholarships.
Tuition waivers.
Other financial aid programs.
Student loan repayment assistance.
529 plans
Although Utah doesn’t offer a prepaid tuition plan, it does have a 529 option called my529. With a 529, you can open an account on behalf of a child and invest your contributions. The account grows tax-deferred and, if the withdrawals are used for qualifying education expenses, the withdrawals are also tax-free.
As an added benefit, Utah also allows residents to deduct a portion of their 529 contributions on their state income taxes as long as the account was set up before the beneficiary turned 19.
Utah’s my529 is attractive for those that live outside the state, too. Morningstar, an investment research company, issued Utah’s my529 a “gold distinction.” Utah’s my529 is one of just two 529 plans to earn this distinction in 2022, and it is the only plan that has held that distinction every year since Morningstar introduced its rating system in 2012. The gold rating highlights the quality of the plan’s investment options and low fees.
In-state tuition
Public schools are usually less expensive than private colleges. Nine schools are part of the Utah System of Higher Education (USHE):
Salt Lake Community College.
Snow College.
Southern Utah University.
University of Utah.
University of Utah Eastern.
Utah State University.
Utah Tech University.
Utah Valley University
Weber State University.
However, students who live in Utah could potentially attend school in another state and qualify for a lower tuition rate. Utah participates in tuition exchange programs through the Western Interstate Commission for Higher Education (WICHE). Through these programs, students can choose from over 160 participating schools in 15 member states plus U.S. Pacific Territories and Freely Associated States and pay no more than 150% of the resident tuition rate. The network is made up of the following places:
California.
New Mexico.
North Dakota.
South Dakota.
Washington.
U.S. Pacific Territories and Freely Associated States (Commonwealth of the Northern Mariana Islands, Guam, Republic of the Marshall Islands, Federated States of Micronesia, and Republic of Palau).
According to WICHE, the average annual savings per student was $11,294 for the 2022-23 academic year.
Utah grants
Grants are a valuable form of financial aid. They’re usually awarded based on the student’s financial need, and as long as the recipient meets the terms of the grant, the award doesn’t need to be repaid. Utah operates four grant programs:
Veterans Tuition Gap Program
The Veterans Tuition Gap Program award is a supplemental award that covers the remaining cost of tuition, fees and textbooks for military veterans who have exhausted federal benefits. To qualify, you must be a Utah resident, a military veteran and enrolled in the final year of your first bachelor’s degree program.
Only students attending one of the following schools can qualify: Salt Lake Community College, Snow College, Southern Utah University, University of Utah, Utah State University, Utah Tech University, Utah Valley University or Weber State University.
Adult Learner Grant Program
For those who didn’t earn a degree right after high school, the Adult Learner Grant is a potential aid option. It provides financial assistance to adults age 26 or older enrolled in online programs in designated areas of need.
The award can be used to cover the cost of attendance at participating public and private colleges. Eligibility is determined by the information included on the Free Application for Federal Student Aid (FAFSA).
Public Safety Officer Career Advancement Reimbursement and Grant Programs
Talent Development Award Program
Recent high school graduates and adults enrolled in eligible programs at participating schools may be eligible for the Talent Development Award Program. This program covers up to the cost of resident tuition, fees and books at select schools, including Salt Lake Community College, Southern Utah University, the University of Utah, Utah State University, Utah Tech University (formerly Dixie State), Utah Valley University and Weber State University.
Eligibility is based on the FAFSA, and the student must intend to work a qualifying job in Utah after graduation.
Utah scholarships
Scholarships, like grants, usually don’t have to be repaid. Some scholarships take students’ finances into consideration, but most scholarships are based on merit. In Utah, there are several scholarships available from the state:
Opportunity Scholarship
Utah’s Opportunity Scholarship encourages high school students to complete advanced courses in core subjects while in high school. Students can apply for the scholarship during their senior year of high school, and selected students can receive up to $1,000 per semester for up to four semesters. Students are chosen based on their grade point averages and their performance in advanced courses.
Utah Promise Scholarship
The Utah Promise Scholarship is based on financial need, and it’s for both recent high school graduates and adult learners. The scholarship covers up to the cost of attendance for up to two years at public schools and select private colleges, including: Brigham Young University (Provo), Ensign College, Western Governors University and Westminster College.
Utah Technical College Scholarship
The Utah Technical College Scholarship is for students enrolled in technical education certificate programs in high-demand areas at select schools. It can help cover the cost of tuition, fees and required textbooks for up to 12 months after a student graduates from high school.
T.H. Bell Education Scholarship
The T.H. Bell Education Scholarship is a program for high school graduates and adult learners at select public and private schools who plan to pursue careers in education. The scholarship can pay for the cost of resident tuition, fees and textbooks for up to four years.
To qualify, students must be enrolled in an approved teaching program or an approved program that prepares students to become speech-language pathologists or other licensed professionals providing services in public schools to students with disabilities.
Students can attend programs at the following schools: Brigham Young University, Rocky Mountain University of Health Professionals, Salt Lake Community College, Snow College, Southern Utah University, University of Utah, Utah State University, Utah Tech University (formerly Dixie State), Utah Valley University, Weber State University, Western Governors University and Westminster College.
Olene S. Walker Transition to Adult Living (TAL) Scholarship
The TAL Scholarship is for students transitioning out of Utah’s foster care system or the unaccompanied refugee minor program to earn a postsecondary degree or credential at a Utah public school. Eligible full-time students can receive up to $5,000 per year.
Tuition waivers in Utah
There is one tuition waiver program in Utah and it’s for National Guard members. If you are a member of Utah’s National Guard, you can qualify for a full tuition waiver at a state college or university for up to two semesters.
Other financial aid programs
Outside of the USHE system, the University of Utah has a valuable program for Native American students.
Utah State University Native American Student Scholarship
This scholarship program for Native American students covers all tuition and school-required fees at any of the 30 Utah State University locations. To qualify, students must be members of a federally recognized tribe in and around Utah and seek a technical certificate, associate or bachelor’s degree.
Student loan repayment programs in Utah
Based on data from the Federal Student Aid office, the average student loan balance per borrower in Utah was $31,861.93 as of 2022 — about 8% less than the national average of $34,577.34.
Even though Utah borrowers tend to owe less money, the state offers three student loan repayment programs that can help graduates accelerate their repayment.
Utah Behavioral Health Workforce Reinvestment Initiative
Behavioral health professionals can qualify for up to $50,000 in loan repayment assistance through the Utah Behavioral Health Workforce Reinvestment Initiative. Participants must serve for at least three years at a qualifying publicly funded site in Utah. Eligible professionals include psychiatrists, psychiatric pharmacists, psychologists, psychiatric/mental health nurse practitioners, clinical social workers, counselors, clinicians, therapists and certified peer specialists.
Rural Physician Loan Repayment Program
Under the guidelines of Utah’s Rural Physician Loan Repayment Program, physicians must enter into a two-year contract committing to working at a rural hospital. In exchange, they can receive up to $120,000 to repay their student loans. Providers must be in primary care, obstetrics and gynecology, general surgeons, orthopedic surgeons, pediatrics or internal medicine.
Veterinary Medicine Loan Repayment Program
How to apply for financial aid in Utah
To apply for Utah’s financial aid programs and institutional aid, follow these steps:
Submit the FAFSA: Many award programs are based on your financial need, so submit the FAFSA as soon as you can after it opens, typically on Oct. 1. You can complete and submit the FAFSA online at FAFSA.gov.
Create a ‘Keys to Success’ account: Keys to Success is a college and career readiness tool backed by the state of Utah. It includes a website and mobile app that students and parents can use to find scholarships and internships and learn about different career paths. The platform can allow you to find state-based financial aid and awards from non-profit organizations and corporations.
Contact the financial aid office: Schools may have their own deadlines and application processes, so reach out to your college’s financial aid office for details on available awards and how to apply.