By Peter Anderson23 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited November 2, 2018.
As my wife and I go through the Dave Ramsey’s 7 Baby Steps, we’re finally completing step 3, building 3-6 months of expenses (although we decided to save closer to a year of expenses), and we’re now entering step 4 where you are to invest 15% into Roth IRAs and other pre-tax retirement accounts.
While I know some people have questioned the mathematical soundness of Dave’s plans, they have worked well for us, and we’re not exactly Dave Ramsey snobs.
We know when to take his advice, and other times tailor his advice to fit our needs.
For example, I think some of his assumptions when it comes to investing (12% returns?) won’t probably pan out, but his basic advice of investing at least 15-20% of your income is sound.
Investing In A Roth IRA
The first step that we’ll be taking is to invest in a Roth IRA.
Most people will suggest that you invest in a 401k first if the company you work for offers a match on your contributions. Why not – it’s an immediate 100% return!
While my company offers a 401k, they are not offering any matching contributions to our account.
Because of that we’ll be skipping the 401k for now, and moving over to the Roth IRA account that will give us tax free earnings. After we max out our Roth IRAs we’ll most likely be investing back into my 401k up until the maximum.
Where To Get An IRA Account?
So where should you get an account? There are a ton of options out there when it comes to investing. Below I’ve put together a table of some of the best options available for starting your own retirement account whether it’s an IRA, Roth IRA or if you want to just trade stocks.
Each company in the table below has fees, trade commissions and annual fees listed if I was able to find them. If you know of others, or see mistakes, please let me know. Some of the links below may be affiliate links. Included below are both discount brokerages and mutual fund companies.
If you like to be hands off, a robo-advisor might be a good option:
Who Do Other Blogger Experts Use?
Mike with ObliviousInvestor.com invests with Vanguard because he believes that some of the other companies have a conflict of interest and put investors interests second.
Vanguard has a unique ownership structure such that the company is actually owned by the people who invest in their funds. (That is, the clients are also the owners.) As a result, the conflict of interests described above is eliminated entirely. Unlike every other fund company, Vanguard is owned by its clients.Vanguard has consistently been the lowest cost fund provider throughout the last three decades. Vanguard’s funds repeatedly dominate the competition in their respective asset classes.
Jim of WalletHacks.com has accounts with Ally Invest, and likes them because of the good customer service and low fees, but mentions that it really doesn’t matter which one you choose.
it doesn’t matter which broker you pick. It is more important that you start contributing towards your retirement as soon as possible because each year you wait is another year you lose out on gains. Some will charge you $15 a trade, some will charge you $5, but those all pale in comparison to how much you lose if you let that decision paralyze you.
Phil at PTMoney.com opened his first Roth IRA a while back and also chose Vanguard because of their low fees, and because of recommendations from others.
Vanguard is highly regarded amongst most personal finance experts, bloggers, and CFPs as the best place to invest in an IRA or taxable account. When I spoke with Kiplinger and NAPFA back in January, they suggested Vanguard.
Kyle at amateurassetallocator.com has Vanguard listed as his best mutual fund company.
Vanguard appears on almost every list of top mutual fund companies. It is my personal favorite fund company and is where I hold virtually all of my mutual fund assets outside of my company-sponsored 401k. When I leave, I will undoubtedly roll over my 401k to an IRA with Vanguard, just like I did last time. Why do I like Vanguard so much? It’s cheap. Not only does it offer a wide variety of index funds to choose from, but even their excellent actively-managed funds are dirt-cheap compared to the competition.
So if you’re looking for opinions from a lot of the folks in the blogosphere it sounds like a lot of folks prefer Vanguard because of their low cost, good choice of index funds, and good performance, partly due to their low fees. I do have to say, however, that I appreciate Jim’s advice that the choice of fund company isn’t as important as getting started on investing as early as you can. Start now!
Conclusion
Personally I’m leaning towards opening an account for myself and my wife with Vanguard as pretty much everywhere I turn people are recommending them. Add to that their low fees, and fund options, it sounds like it should be a good choice. I’ll be continuing to explore my options in posts over the coming weeks.
As with anything I’d recommend that you do your own research to understand the different companies, research fees and investing options, and make sure you’re making an informed decision.
What mutual fund company or discount brokerage do you use? How do you like it? Do you have other recommendations for places to open an account? Tell us your thoughts in the comments!
As a parent, it is natural to want to give your child the best possible start, especially when it comes to money.
You want to teach your children good money habits, and them develop good practices that will allow them to succeed financially. In many cases, this is about more than just teaching budgeting 101 and how to avoid credit card debt. Many of us also want to help our children learn the ins and outs of investing.
Buying Stocks for Your Kids
If you want to teach your children about investing, it can be a good idea to buy stocks for them. Minors can’t buy stocks, so you will have to do it on their behalf. You have two options when it comes opening an account for your children:
Guardian Account: You retain ownership of the account, and gains are taxed at your rate.
Custodial Account: The child owns the count, even though you are in control of it. Gains are taxed at the child’s tax rate. Once the child reaches 18 or 21 (depending on where you are), the assets come under his or her control.
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You can decide what type of account would work best for your child. If you choose a custodial account, it is important to understand the restrictions that come with managing your child’s money until he or she can do it.
Once you have determined what type of account you will open for your child, it’s time to set up the investment account. You can usually open a guardian or custodial account at many brokerages, including online brokerages like TD Ameritrade and E*Trade.
Find out what minimum requirements come with opening an account, and find out what other information and documentation you might need to open an account on behalf of your child.
Helping Your Child Choose Stocks
Once you have an account set up, it’s time to help your child learn about choosing investments. You can look at companies that your child might be interested in, such as Disney, or Coke. Talk about what makes a good investment, and discuss different options. If your child is a teenager, you can discuss the merits of dividend stocks as well, allowing him or her to begin learning about income investing. You can also look for Direct Purchase Plans offered by some companies, allowing you to save on transaction fees in some cases.
Consider funds as well. There is nothing run introducing a teenager to the concept of index funds and exchange-traded funds. Talk about the costs associated with funds, as well as the instant diversity that might be available in some cases.
Your child can go on a practice run, if you would like. There are several websites and smartphone apps that allow you to put together a hypothetical portfolio and track its performance. If you want, you can encourage your child to track investments he or she is interested in, just to get an idea of how they are doing. Read up on the companies of interest and encourage your child to consider various fundamental factors in addition to the technical aspects of how stock prices rise and fall.
Once your child is more confident, you can begin making stock purchases on behalf of your child. Letting him or see that sometimes there are losses as a result of a poor decision can be part of the learning process, but your involvement should help prevent major investing mistakes.
Buy Stock Through the Company
When we had our first son I was excited to buy some stock for him in a custodial account directly with my brokerage firm. I bought him one share of Nike and one of Under Armour and was able to request the certificate to be mailed to me. I was getting ready to do that again for our second son, but learned that our firm (and many others) don’t do this anymore. You have to call the custodian of the company (a popular one is Computer Share) and see if the stock available.
Wanting to buy some different stock (I was looking at Google or Apple) I was able to get their contact info from my back office. I was disappointed that my first pick, Apple, no longer issues stock certificates – boo! So if you’re an Apple fan like myself and want to get the certificate for a loved one, you’re outta luck. I know. I’m saddened, too. 🙁
I’m still trying to figure what stock to buy. I’ll keep you posted…..
SoFi is a nationally chartered, online-only bank that offers customers a high 4.20% on savings, an interest-earning checking account, and a host of other benefits for being a member. The bank currently has more than 5.5 million customers, which it calls members, and has an extensive rewards system in place to help your money go further and grow faster.
Find out why SoFi is a top-rated bank, as well as one of the fastest growing financial technology companies offering loans, an investment platform, and a rewards credit card.
SoFi at a Glance
SoFi became a nationally chartered online bank in early 2022, following the fintech’s acquisition of Golden Pacific Bancorp. SoFi started as a company that provided student loan refinancing, and evolved to provide personal loans and other services.
Its status as a national bank enables the fintech to help even more people. “This incredible milestone elevates our ability to help even more people get their money right and realize their ambitions,” said SoFi CEO Anthony Noto in a press release following the acquisition.
SoFi Products
Today, the online bank offers a variety of products to help American consumers meet their financial goals. The parent company, SoFi Technologies, is the parent company of SoFi Bank, Member FDIC. Products and services include:
SoFi checking and savings
SoFi personal loans
Credit card
Student loans and student loan refinancing
Mortgages
Investment and Retirement Products
Find out how these products compare to competitors in the industry in our SoFi reviews below.
SoFi Checking and Savings Account
SoFi offers a combined checking and savings account to customers. You cannot open one without the other, but this provides tremendous benefits and an incentive to save. Currently, when you open a SoFi checking and savings account, you can earn up to $250 when you set up direct deposit within the first month.
That’s in addition to all the other perks, including an account with no monthly maintenance fees, no overdraft fees (for qualifying customers), and no minimum balance requirement. Plus, deposits are FDIC-insured up to $2 million through SoFi’s network of partner banks, which exceeds the federal limit of $250,000 per account holder, per account type.
SoFi Checking
Your SoFi checking account comes with a cash back debit card that pays up to 15% cash back on debit card purchases when you shop at local businesses. Your SoFi debit card also offers fee-free access to more than 55,000 AllPoint ATMs for cash withdrawals, cash deposits, and balance transfers. You can also check account balances at any ATM with no fees.
Your SoFi checking account also has many other benefits you may not find in a traditional bank account. You can get paid two days early with early direct deposit. Plus, your SoFi checking account earns interest at a rate of 1.20% APY.
If you enable overdraft protection, SoFi will pull from your savings account to cover checks, debit card purchases, and ACH withdrawals, including online bill payments, loans, and P2P payments. It will not pull from savings you have designated in vaults for specific purposes.
SoFi Savings Account
Your SoFi checking account offers a 4.20% APY, which is one of the highest available for online savings accounts. Be aware that to earn this high rate, you’ll need a qualifying direct deposit of any amount each month. Otherwise, you’ll earn 1.20% on all account balances.
The savings account also helps with cash management by offering automatic savings features and savings vaults. You can designate a specific amount of each ACH direct deposit or cash deposit to go directly into your SoFi savings account or into a specific savings vault. Unlike many traditional banks, there is no limit on savings withdrawals or transfers.
SoFi Pros and Cons
Your SoFi bank account has a number of desirable features that make it one of the best online savings and checking accounts for many people.
Pros
High 4.20% APY on savings
1.20% APY on checking account balances
Early direct deposit
No ATM fees
No bank fees
Overdraft protection for qualifying customers
Cons
No CDs
No money market accounts
No branches for in-person service
SoFi Membership Features and Additional Perks
SoFi members who open a fee-free combined checking and savings account also qualify for other benefits. There is no minimum opening balance or minimum balance requirements to be considered a SoFi member.
Some of the membership benefits include:
15% off estate planning
Free access to career coaching
Free financial planning services
Member events that can help with money management
SoFi Member Rewards
A few of the SoFi member benefits stand out, including the SoFi Member Rewards program. To join, download the SoFi app. You will earn points when you take actions like:
Using your debit card
Checking your credit store
Saving money
Investing
As you earn points, you can convert those points to cash deposited into your SoFi bank account. You can then redeem points to help may loan payments, convert points into fractional stock shares through SoFi Active Invest, or even cash in points for a statement credit.
SoFi Referral Program
SoFi’s Rewards don’t stop with actions you take within your account. If you share SoFi with friends using your unique link, you’ll earn additional points you can cash in.
Currently, SoFi offers 2,000 rewards points for every person you refer who opens a SoFi checking and savings account with at least $10. You will also earn 2,000 points for friends who open a credit card, SoFi Credit Score Monitoring Account, or fund a Lending Product within 90 days of registering for SoFi using your link. Your friend will also earn 2,000 points.
Note that you can only earn points for one account per friend, so your friend may open a bank account and a credit card, but you will each only earn 2,000 points.
SoFi Stadium Perks
You might not think of SoFi as a travel or entertainment rewards card, but SoFi’s Stadium Perks program does provide unique benefits for Los Angeles residents and tourists. SoFi members earn 25% cash back on purchases at SoFi Stadium, home of the Los Angeles Rams and Los Angeles Chargers, when you use your debit or credit card.
Plus, gain access to the exclusive SoFi Member Lounge and fast and easy entry to the stadium through the SoFi Member Express Entry line. If you need to check your bag, SoFi will reimburse the fees to your checking account or credit card.
SoFi Plus: Premium Membership
SoFi Premium members earn even more perks. Unlike many premier programs, SoFi Plus does not require an additional monthly purchase or subscription fee. To qualify, just set up direct deposit with your checking and savings account. When your first direct deposit clears, you’ll gain access to all the premium benefits.
Qualifying direct deposits for SoFi Plus must reach $1,000 per month or more to gain access to all the features of SoFi Plus. This includes no-fee overdraft coverage and rate discounts on SoFi loans. Other features, including the 4.20% APY, 2X rewards points, and preferred access to IPOs through SoFi Invest, apply to all SoFi Plus members.
How to Open a SoFi Account
Opening an account online is easy. You’ll need to provide some information, including your address and Social Security number. You must be a U.S. citizen or permanent resident to qualify.
There is no minimum opening deposit, but you’ll want to fund your account to take advantage of high interest rates and access all the benefits. You can deposit cash or checks to fund your account for the first time through:
ACH direct deposit
Mobile check deposit
a GreenDot debit card
Instant Funding
To take advantage of Instant Funding, link your existing Visa or Mastercard debit card to your SoFi account. Click “Transfer Instantly” and you can transfer up to $500 into your account in minutes. To use this method, you must be a new SoFi customer and deposit a minimum of $50.
SoFi Credit Card
The SoFi credit card lets you maximize the points you can earn. The card delivers 2% cash back rewards on every purchase and has no annual fees. To qualify, you’ll need a “good” or “excellent” credit score.
The card has a standard variable Annual Percentage Rate (APR) of between 17.74% up to 29.74% based on your credit score and financial history. Cash advances carry an APR of 31.74%.
The card carries fees comparable to other top-tier rewards cards, including a late payment/returned payment fee of up to $39, and balance transfer or cash advance fees of $10 or 5% of the transaction amount, whichever is greater.
You can redeem your cash back as a statement credit, cash back into your checking or savings account, or as a deposit for investing through SoFi Invest.
SoFi Investing
SoFi is not just an online bank, but a full-fledged financial services firm that includes planning, management, and investing. The online stock trading app provides automated investing or hands-on options. You can trade:
Stocks
ETFs
Fractional stocks
Crypto
IPOs (for qualified SoFi Plus members only)
SoFi Investing at a Glance
SoFi offers active investing for stocks, ETFs and even IPOs. You can start investing in some of the highest market cap companies on the S&P 500 and other stock indexes with as a little as $5. SoFi does not charge commissions on trades. When you open an Active Investing account with at least $10, you could win a bonus of stocks valued at up to $1,000 by playing the “Claw Game” promotion.
If you prefer not to engage in active investing, you can set up an automated investing account with as little as $1. Invest a set amount one time or set up automated recurring payments to watch your investments grow.
You will need to answer some questions so that SoFi can determine your risk tolerance and choose the right portfolio for you. SoFi automatically rebalances your investments quarterly and keeps your portfolio diversified based on your goals and risk tolerance.
SoFi also gives investors access to Bitcoin, Ethereum, Cardano, Dogecoin, Solana, and 25 other popular cryptocurrencies. When you make your first crypto trade with a $10 minimum, you will earn a $100 bonus in Bitcoin within seven days. SoFi charges a mark-up of 1.25% on all crypto transactions.
SoFi Retirement Accounts
In addition to active and passive investment services through stocks, bonds, and ETFs, SoFi’s investments include Roth, SEP, and Traditional IRAs for retirement. You can choose active or automated investing. SoFi financial planners can help you create a retirement strategy that will work for you.
SoFi Investing Pros and Cons
As with all investment platforms, SoFi: Invest has many benefits and a few drawbacks.
SoFi Invest Pros
Active or automated investing
Investments in crypto, stocks, ETFs
Fractional shares permitted
Options investing
Intuitive app
SoFi Invest Cons
Options investing may require advanced knowledge
Not every investment will earn money
Odds of winning a $1,000 stock bonus are slim
SoFi Student Loans
Unlike many online banks, SoFi offers student loan refinancing with fixed interest rates as low as 4.99%. To qualify for the lowest interest rate, you will need to set up autopay for your loan payments.
SoFi can help you pay down your student loans faster with fixed APRs of 4.99% up to 9.99% or variable APRs of 5.74% to 9.99% APR. You may qualify for a SoFi student loan if you are gainfully employed, starting a job within 90 days of your loan application, or have sufficient income from various sources. You should also show a solid financial history and monthly cash flow indicating you can make the SoFi loan payments.
SoFi Mortgages
SoFi offers a broad range of mortgage products, including:
Conventional mortgages
Jumbo loans
Home equity loans
Cash-out refis
Short-term bridge financing for investment properties
With interest rates rising, SoFi’s “Lock and Look” feature lets you lock in today’s rates for up to 90 days while you shop for your dream home. Checking for your rate won’t affect your credit score.
First-time homebuyer loans may require as little as 3% down, while other home mortgages require just 5% down. Mortgages with a loan-to-value ratio greater than 80% will require private mortgage insurance.
SoFi offers conventional, fixed-rate mortgages with terms ranging from 10 to 30 years. If you take out a 30-year mortgage, you may qualify for a 0.25% pricing special or interest rate discount. To qualify for the lowest rates, you’ll want to have a strong credit history, an excellent credit score, and a low debt to income ratio.
SoFi Personal Loans at a Glance
SoFi may offer one of the top-rated online checking accounts today. But SoFi was founded as an online loan company in 2011, providing personal loans with no fees and loan amounts from $5,000 to $100,000. You can check your rates quickly with no impact to your credit score.
SoFi Personal Loans Review: Members-only Perks and Competitive Rates
A SoFi personal loan offers low fixed rates based on your credit history. Repayment terms range from two to seven years, while loan amounts run from $5,000 up to $100,000. SoFi borrowers pay no origination fee. You won’t suffer a prepayment penalty if you want to pay off your loan early. You can receive loan funds as quickly as the same day you apply.
SoFi personal loan interest rates range start at 8.99% according to the SoFi website. Secure the lowest rates with automatic payments directly from your SoFi account. SoFi Plus borrowers with qualifying monthly direct deposits may receive a rate discount as well. The higher your credit score, the lower your interest rate.
SoFi offers unemployment protection for borrowers, which can help with cash flow if you lose your job. You can modify your SoFi personal loan payments while you look for a new job. SoFi’s career coaching can even help you find new work.
Best for Fee-Free Debt Consolidation Loans
As one of the top online lenders today, SoFi can help you save money by consolidating high interest credit card debt into one, low, monthly loan payment. SoFi personal loans have no origination fee. Credit card consolidation can help you get out of debt faster and make it easier to pay your bills with one monthly payment directly from your account.
If you are planning to consolidate credit card debt through a SoFi personal loan, you can choose Direct Pay. Loan proceeds will go to your credit card companies directly, saving you time and hassle. You’ll also earn an interest rate discount with Direct Pay, making SoFi a great choice for credit card debit consolidation.
SoFi Personal Loans: Pros and Cons
SoFi personal loans have a number of benefits compared to other online lenders. Let’s look at the pros and cons of your SoFi personal loan.
Pros
No origination fees
Unemployment protection
Receive funds the same day you are approved
No prepayment fees
Loan amounts up to $100,000
Cons
Must be a U.S. citizen-permanent resident
Risk of charging up credit cards again after debt consolidation loan
Excellent credit scores required to qualify for the lowest rates
Hard credit pull to obtain a loan may reduce your credit score temporarily
What You Can Use SoFi Loans For
You can use SoFi loan money for virtually anything, including home improvements, credit card debt consolidation, family planning and IVF, or even luxuries like weddings and travel. With competitive rates, easy automatic payments, and unemployment protection, a SoFi personal loan might make sense to pay for one-time events where you might normally use a credit card.
How to Apply for a SoFi Personal Loan
Applying for a personal loan is easy. You may want to check your credit report first to ensure that all the information is accurate. A solid financial history can help you secure the best loan rates and highest loan amounts.
You will first want to open your SoFi bank account and set up direct deposit as well. SoFi Plus members can get interest rate discounts and even earn reward points for their loan. Once you are ready, visit SoFi.com, select personal loans from the drop-down menu of products, and click “View your rate.”
You’ll need to submit some information, including your name, address, Social Security number, loan amount, and income.
Bottom Line
SoFi Money encompasses all the banking, lending and investing services SoFi bank offers. SoFi ranks as one of the top online financial service companies, with excellent customer service and a wide range of products.
You can reach SoFi customer service via email, using the online virtual assistant chatbot, or by phone. Hours vary depending on the service you need. A wide range of financial products, low rates, and FDIC insurance up to $2 million for deposits set SoFi apart from competitors.
As we transition from childhood to adulthood, there are certain milestones we all must pass. Among the earliest, most significant, and biggest pain in the you-know-what is choosing a new bank.
Whether you’re starting your first job, saving for a big purchase, or simply looking to better manage your finances, the bank you choose can have a significant impact on your financial well-being.
With so many options available, choosing the right bank can feel overwhelming. But if you work through it step by annoying step, it’ll be over before you know it.
Factors to Consider When Choosing a Bank
When it comes to choosing a bank, there’s no one-size-fits-all solution. The best bank for you depends on your individual needs and priorities. So before settling for wherever your mom/dad/betrothed banks, think about the most important factors influencing your decision.
Type of Bank: National, Local, or Online
The type of bank you choose can impact your banking experience in significant ways. There are three main types of banks to consider: national, local, and online.
National banks are typically the largest, with branch networks that span the country and a wide range of options. However, they also tend to have higher fees and lower interest rates. Some of the most venerable may also lag behind more modern banks in user-facing technology, including their apps and available features.
Local or regional banks, including credit unions, offer more personalized service, often with lower fees and a more community-focused approach. However, their branch networks may be more limited, and they may not have as many account options or advanced technology — or they could be eons ahead of their behemothic competition. You really just never know.
Online banks are a newer option that have gained popularity in recent years. Also called neobanks, they frequently offer low fees, high-interest savings accounts, and advanced mobile and online banking features. However, they may not have any physical branches, which can be a drawback for some customers.
Convenience: Location, Hours, & Availability
When considering convenience, think about factors like the location of branches and ATMs, hours of operation, and availability of customer support.
If you prefer to do your banking in person, look for a bank with branches located near your home or work. If you travel frequently or often find yourself in areas without your bank’s branches, you need a bank with a larger ATM network or fee-free access to third-party ATMs.
Speaking of travel, if that’s something you find yourself doing frequently, a bank with reliable online access or branches far and wide may be a must.
Banking hours are also an important consideration. If you work a traditional 9-to-5 job, you need a bank with extended or weekend hours. Some banks also offer 24/7 customer support, which can be helpful if you need assistance outside regular business hours.
A bank with convenient locations, hours, and availability can save you time and hassle in the long run.
Fees: Account, Overdraft, & ATM Fees
When choosing a bank, it’s important to consider the fees associated with its accounts and services. Depending on your personal tendencies and the account type, look out for fees like:
Maintenance fees. Monthly maintenance fees can range from $0 to $25 per month. Some account types waive them if you adhere to the minimum balance requirement or have direct deposit. A few have no maintenance fees at all.
Overdraft fees. Banks charge overdraft fees or nonsufficient (NFS) funds fees when you spend more than you have in your account. Overdraft fees can be particularly costly at around $35 per transaction. Some banks, especially neobanks, don’t charge them. However, those banks may block spending when you don’t have enough.
ATM fees. Both your own bank and other banks charge ATM fees when you use an out-of-network machine. They can be as much as $2 or $3, meaning a single transaction at an out-of-network ATM could cost you $5 or $6 if both parties charge. Look for a bank with a large network of fee-free ATMs, or consider an online bank that reimburses ATM fees.
Foreign transaction fees. If you don’t travel internationally, you don’t have to worry about these. Banks charge them for using your debit card outside the United States. Foreign transaction fees generally range from 1% to 3% of the transaction amount, though some banks go higher and others have no foreign transaction fees.
Look for a bank with transparent fees and no hidden charges, and consider your own banking habits to choose the account that’s best for you.
The account features a bank offers can make a significant impact on your banking experience. Common account features to consider include:
Interest rates. The interest rate on your account determines how much you’ll earn on your deposits. Most banks only offer interest on certain savings accounts or savings subaccounts. If you’re looking for an account like that, look for a bank that offers competitive interest rates that help your money grow over time.
Rewards programs. It’s not terribly common, but some banks offer rewards programs that give you cash back, points, or miles for using your debit card. Look for a bank with a rewards program that fits your spending habits and offers rewards you’ll actually use.
Account minimums. Some banks require a minimum balance to open an account or avoid account fees. Check the minimum balance requirements before opening an account, and consider whether you can meet them.
Special considerations. Some banks give existing customers special considerations when they open other account types. For example, you might get better rates on a loan, higher interest on a savings account, or extras on your kid’s bank account. Ask about these types of bonuses before opening an account.
Look for a bank with the features that fit your lifestyle and help you achieve your financial objectives.
Technology: Online Portal & Mobile Banking Features
In a time not-so-long ago in a land right underneath us, the info in this section would have been a mere bullet point in the previous one. But the pandemic pushed those of us who are a tad older than Gen Z to acquiesce to the digital revolution if we hadn’t already.
Since then, the closest I’ve been to a human bank teller is unwittingly passing one in the produce section of the grocery store (I assume). If you’re like me and prefer to stay out of brick-and-mortar banks or just want to preserve your non-corporeal options, online and mobile banking features are a must.
Unless you also hate technology, run the other way from any bank without an app and online portal. If they don’t have them, you can expect them to be similarly behind the times on other things. I bank with a really massive bank, and their app was — I kid you not — just a link to their mobile website rather than a real stand-alone app for way longer than it should have been. And they literally just stopped charging overdraft fees to keep up with neobanks.
Look for a bank with a user-friendly online portal that makes it easy to check balances, transfer funds, pay bills, and view statements. You also need a powerful mobile app with the same features plus mobile check deposit.
But you don’t have to stop there.
Some banks offer additional app-only features that can help you manage your finances and achieve your goals. For example, roundup savings is a feature that automatically rounds up your purchases to the nearest dollar and deposits the difference into a savings account, helping you save without even thinking about it. And savings goals, which online banks may call buckets or envelopes, allow you to set savings goals and track your progress without opening separate savings accounts for each goal.
You’re most likely to get advanced app-only features from online-only neobanks. But you may find these features at traditional or regional banks too.
Make a list of the types of online and mobile features you use and double-check that the bank you choose has an app for that.
The more it matters to you, the more research you have to do. For example, you can look for app or portal walk-throughs on YouTube and check out screenshots on their website or app download page.
When it comes to banking, safety and security are of the utmost importance. You wouldn’t use a bank that was dimly lit and secluded during the hours you needed it. By the same token, you want to ensure your money and personal information are protected at all times.
Look for a bank that offers two-factor authentication, which adds an extra layer of security by requiring a code in addition to your password to access your account. Also, look for a bank that provides alerts for suspicious activity, such as transactions from an unusual location or unusually large transactions. Some banks may also offer identity theft protection services to help you monitor your credit and detect any fraudulent activity.
It’s also important to consider the bank’s overall security measures, including encryption and firewalls to protect your data from hackers. Check that the bank you choose has a robust security policy and that they’re Federal Deposit Insurance Corporation-insured, which protects your deposits up to $250,000.
Getting Help: Customer Service & Support
No matter how user-friendly a bank’s online portal and mobile app are, there may come a time when you need help from a real person. That’s when it’s important to know what customer service and support options are available.
Ideally, look for a bank that offers 24/7 customer support via phone or chat. If that’s not an option, they should at least have support available during hours you’re likely to have time to use it. Some banks also offer support via email or social media.
Consider the quality of customer service as well, reading reviews and talking to friends and family members who bank with the same institution.
Finding a bank with stellar customer service is especially important if they don’t have great online or mobile banking options.
Steps to Help You Make a Decision
Choosing a bank can feel overwhelming, but by breaking the process down into manageable steps, you can make a decision that best suits you.
Identify your banking needs and preferences. Think about the features that are most important to you. Consider your lifestyle and banking habits as well. Make a list of items to research at each bank.
Research different banks and compare features. Use online resources such as bank websites and banking and review sites like Money Crashers to learn more about different banks and their features. Make a pros and cons list of the banks that seem to offer the features you’re looking for.
Narrow down your options. Use your pros and cons list to narrow down your options and identify the bank that best fits your needs.
Try a bank’s services before committing. Once you’ve identified a bank you’re interested in, try out their services before committing. No, they don’t offer free trials, but you should think of it that way. Open a checking or savings account, and use their online portal and mobile app to see how easy they are to use. Make sure you feel comfortable with the bank’s customer service and security measures as well. Set a reminder on your calendar to reconsider the bank after three months. If you’re not happy, try something else. It’s a bit of a pain, but ultimately, you’ll be glad you didn’t settle.
Final Word
Choosing the right bank can have a significant impact on your financial — and honestly, mental — well being, but it’s important to remember that you’re not married to your bank. If your bank isn’t meeting your needs or expectations, switch to a bank that does.
It’s also worth having multiple bank accounts at different banks for different purposes. For example, you can open a checking account at a local bank for convenient in-person banking and an online savings account at a different bank for higher interest rates.
The most important factors to consider when choosing a bank are your individual needs and priorities.
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Heather Barnett has been an editor and writer for over 20 years, with over a decade committed to the financial services industry. She joined the Money Crashers team in 2020, covering banking and credit content for banking- and credit-weary readers. In her off time, she enjoys baking, binge-watching crime dramas, and doting on her beloved pets.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Yep, you are reading this because you need an extra $300 ASAP.
In this post, you will learn the exact ways I have made 300 dollars fast or other methods that I truly know that work. Around here at Money Bliss, we research everything! That way we know you can put in the hustle and make it happen, too!
But with so many ways of making money on the internet these days, which one is best for your situation?
Hey, do you ever wonder how some people seem to make money the way they do?
It’s not by getting lucky–you’ve got to be smart about it.
I’ve looked at different options and ranked them from my favorite method all the way down to what I think is least desirable in terms of time investment and return.
Let’s get started…
How can I make $300 right now?
There are multiple ways to make $300 in a day.
You have to decide what works best for you! Preferably it would be a way that you naturally find enjoyment.
Even better, if you find a way to make 300 dollars fast that you can do repeatedly – that is called passive income.
What are ways to make money fast?
With so many ways to make money, sometimes figuring out what you should do can be a little overwhelming.
There are plenty of ways to make money fast.
You have to decide what you want to do.
35 Specific Ways on How to Make 300 Dollars Fast
Let us break it down for you with some of the most common and well-known methods of earning money.
For each way to earn 300 dollars in 24 hours, we will provide tips on how you could go about doing it.
1. Get a part-time job
One way is to get a part-time job.
You can look online or walk around any business for job postings.
Right now, there are SO MANY places that are DESPERATE for workers! You can easily find a part-time job making $15 an hour to $20 an hour.
2. Do a No-Spend Challenge – Budget to Find $300
A no-spend challenge is a great way to save money fast. I guarantee you can find $300 from your spending.
During a no-spend challenge, you commit to not spending any money on non-essential items for a set period of time. This can be anything from a week to a month.
There are a few different ways you can approach a no-spend challenge. One option is to cut out all non-essential spending for the duration of the challenge. This includes things like eating out, entertainment and shopping for new clothes. Another option is to allow yourself a set amount of money to spend each day during the challenge. This could be $10 per day or $50 per week.
No matter which approach you take, a no-spend challenge can help you save money fast. It’s also a great way to get creative and find new ways to have fun without spending money.
3. Open A New Bank Account & Get a Cash Bonus (Yes, get 300 dollars free)
A simple way to make money fast is by opening a new bank account. In fact, I just did this and received $300!
One way is to sign up for a new account and receive a sign-up bonus. Many banks offer these bonuses, which can range from $25 to $500, just for opening an account and meeting certain requirements. For example, you may need to deposit a certain amount of money within the first month or maintain a minimum balance.
Another way to make money fast with a new bank account is to take advantage of interest rates. Many banks offer higher interest rates for new customers, so you can earn more on your deposited funds.
Finally, some banks offer cashback or reward programs when you use your debit card or credit card for certain purchases. For example, you may get cash back when you use your debit card at grocery stores or gas stations.
4. Hop on TaskRabbit
TaskRabbit is a great way to make some quick money in one day. You can sign up to be a Tasker and choose from a variety of tasks that need to be completed in your area. Once you complete the task, you’ll get paid.
TaskRabbit is great for people who are looking for extra income and don’t mind doing odd jobs. Some of the tasks you can do on TaskRabbit include:
Cleaning
Yard work
Furniture assembly
Grocery shopping
To become a Tasker, you’ll need to create an account and fill out your profile. Once your profile is complete, you can start applying for tasks. Once you’re approved for a task, you’ll need to complete it and submit proof of completion in order to get paid.
5. Sell items you no longer need for quick cash
There are a few things you can do to make some quick cash if you find yourself in a bind and selling items that you no longer need ranks at the top.
This could include clothes, furniture, electronics, or anything else that you have around the house that you don’t need.
You can list these items for sale on websites like Craigslist, Nextdoor, or Facebook Marketplace.
6. Join an in-person or online focus group
Focus groups are a great way to make some extra money fast. You can join a face-to-face focus group or an online focus group. Online focus groups are usually conducted via Skype or a similar video conferencing platform.
In a focus group, you will be asked to provide your opinions on various topics, products, or services.
The company conducting the focus group will use your feedback to improve its offerings. Focus groups usually last for 1-2 hours, and you will be compensated for your time with cash or gift cards.
Typically, I have made $50-300 for each focus group I completed. The exact amount will depend on the company conducting the research and the topic of the focus group. Learn more.
7. Move to freelance work
The best way to make money fast is to find a need that you can fill and then fill it. For example, if you’re good at writing, you could start offering content writing services. If you’re good at design, you could start offering design services. There are always businesses and individuals who need help with things like this, so if you can provide it, you’ll be able to make money quick.
There are a few different ways to offer freelance services. You can offer your services through a freelancing platform like Fiverr, or you can reach out to businesses directly and offer your services. You can also set up a website and promote your services through that.
Of course, the amount of money you can make will vary depending on the quality of your work and the size of the projects you’re working on. But if you’re able to deliver high-quality work quickly, you should be able to make decent money doing freelance work.
Also, this is a great way to start building consistent income from work from home jobs without investment.
8. Advertise On Your Car As Easy Ways to Make Money
There are a few companies that will pay you to advertise on your car. You can usually sign up for a short-term contract and get paid per month, or sometimes per week or day.
This can be a great way to make some quick cash if you have a car that you don’t mind driving around with ads on it.
Here are a few companies that offer this service:
To sign up, you’ll need to provide some basic information about yourself and your car, and then you’ll be able to browse the available campaigns and choose the ones you want to participate in. Once you’ve been approved for a campaign, the company will send you the materials you need to apply the wrap to your car, and then you’ll be on your way!
Double bonus if you do this while driving for Uber or Lyft!
9. Become A Virtual Assistant:
There are many ways to make money fast, but becoming a virtual assistant is one of the most viable options.
Virtual assistants provide administrative, secretarial, and clerical support to clients from a home office. They can perform tasks such as scheduling appointments, handling customer inquiries, managing social media accounts, and more.
To be a successful virtual assistant, you will need to have strong organizational and time management skills. You will also need to be comfortable using computers and various software programs. Additionally, it is important to be able to communicate effectively with clients via email and phone.
If you have the necessary skills and qualifications, becoming a virtual assistant can be a great way to earn money fast. Check out this free virtual assistant training!
10. Clean Houses
Cleaning houses is a profitable business and most people charge from $35 dollars to $45 an hour, so you can quickly make $300 by cleaning houses. You could start by advertising your services on platforms like Craigslist orNextdoor.
Once you get a few clients, you could start a Facebook group or Instagram account to showcase your work and attract more customers.
You could also look into joining a local house cleaning company as an independent contractor. This would give you the benefit of having a regular income, while still being able to set your own hours and work as much or as little as you want.
10. Give Blood OR Sell Plasma:
There are a few ways to make money fast, and giving blood or plasma is one of them – especially if you live in a college town.
You can usually make around $50-75 for giving blood or plasma. Also, many centers offer first time donors a big bonus!
The process takes around an hour, and you can usually donate once a week.
11. Do Grocery Shopping With Instacart:
Instacart allows people to shop for groceries and other items from the comfort of their own homes. As a shopper, you would be able to set your own hours and work as much or as little as you want.
For someone who loves shopping, this is perfect because you are not spending your own money!
You would also be able to earn tips from satisfied customers. If you are looking for a flexible way to make money, then becoming a shopper with Instacart could be a good option for you.
12. Test Websites for UI/UX
Testing websites for UI/UX is a great way to make money fast. Here are a few things to keep in mind when testing websites:
Make sure the website is easy to navigate
Check for broken links
Test the forms and checkout process
Provide feedback on the overall design and user experience
Companies want their online experience to be great, so this is a top gig.
13. Tutor Online
There are a few different ways you can tutor online, and each has its own benefits. You can use a platform like Chegg or Wyzant to connect with students who need help in your area of expertise. If you’re more of a self-starter, you can also look for online tutoring gigs on Upwork or Fiverr.
Benefits of tutoring online include:
You can work from anywhere with an internet connection
You can set your own hours
Tutoring is a great way to make $30 an hour
If you’re looking for ways to make money fast, tutoring online is a great option. You can work from anywhere in the world, and set your own hours so that you can fit tutoring into your busy schedule. Plus, tutoring is a great way to make extra money.
14. Writing Skill? Become a Freelance Writer
Also, making money is becoming a freelance writer. There are many websites and online publications that are always looking for new content, and a freelance writer can easily provide this. In addition, a freelance writer can often command a higher rate than other types of writers because of the specialized nature of their work.
Another way to make money fast as a freelance writer is to offer services such as ghostwriting or editing. This can be especially helpful for businesses or individuals who need assistance with their writing but do not have the time or resources to do it themselves. By offering these services, you can still earn a decent living while helping others improve their own writing skills.
Check out this course on how to Earn Money while Writing.
15. Manage Social Media Accounts to Make $300 a Day
There are a few different ways you can make money by managing social media accounts. You can offer your services to businesses or individuals who need help with their social media presence. Here are a few ideas:
Offer to help businesses with their social media strategy. This can include creating and scheduling posts, engaging with followers, and monitoring analytics.
Offer to manage an individual’s personal social media accounts. This can include anything from posting updates to responding to comments and messages.
Start your own social media management company. This will require more work upfront, but you can potentially earn a lot more money in the long run.
If you’re looking to make some quick cash, managing social media accounts is a great option. With a little effort, you can easily make $300 or more per day!
16. Become An Uber Or Lyft Driver:
If you’re looking to make some quick cash, becoming an Uber or Lyft driver might be a good option. This past weekend, we met a driver who would not tell me the exact amount he makes, but it was hovering six figures.
You can work on your own schedule and earn money by picking up passengers and taking them to their destination. Plus, you can get paid even more if you’re willing to pick up additional passengers or drive during peak hours.
Key Tip… Learn the routes and areas in which you are more likely to make more money. This may mean driving outside your hometown.
17. Ask for Extra Hours
A simple way to make $300 fast is to ask for extra hours at work. If you’re able to put in the extra work, you’ll likely see a boost in your paycheck.
This can be a great way to make some quick cash if you’re in need.
Many employers will be happy to pay overtime hours or just under the requirements of a full-time position.
18. Rent Your Car
Have you ever thought about renting your car out?
You can do this by signing up with a car rental service like Turo or Getaround. Once you’re approved, you can start renting out your car for quick cash.
Typically, you can earn around $30/hour for each rental, and you can get paid weekly. This is a great way to make some extra money if you have a car that you don’t use often.
19. Rent out a spare room in your house
Renting out a room in your house is a great way to make money fast.
You can charge daily, weekly, or monthly rates, and you’ll get the money right away.
This is a great option if you have an extra room in your house that you’re not using. Just make sure to list the room on a site like Airbnb so people can find it.
20. Open a Shopify Store and Sell
Opening a Shopify store is one of the quickest and easiest ways to start making money online. Shopify is an eCommerce platform that allows you to create an online store in minutes, without any prior experience or technical knowledge.
There are a few things to keep in mind when opening a Shopify store:
Choose a niche: When choosing what products to sell, it’s important to pick a niche that you’re passionate about. This will make it easier to market your store and stand out from the competition.
Research your products: Once you’ve chosen a niche, it’s important to do your research and make sure you’re offering quality products that your customers will love.
Set up your store: The next step is to set up your Shopify store. This process is relatively simple and can be done in just a few minutes.
Start promoting your store: Once your store is up and running, you’ll need to start promoting it through social media, blogging, and other marketing channels.
Once your store is up and running, you can start selling products and making money right away.
21. Events Assistant
Thankfully, large events are making a comeback, and thus it is now one way to make money fast is to work as an events assistant.
Events assistants help with the planning and execution of events, such as weddings, corporate functions, and parties. They may be responsible for tasks such as booking venues, arranging transportation, and decorating the event space.
Working as an events assistant can be a great way to earn quick cash, as many events take place on weekends or evenings. You may earn tips in cash, too.
22. Apply For A New Credit Card & Get a Signup Bonus
Applying for a new credit card is one of the easiest ways to make money fast if you have a good credit score.
You can often get a sign-up bonus just for applying, and if you use the right card, you can earn cash back or points that can be redeemed for free travel.
Just make sure to pay off your balance in full each month so you don’t get hit with interest charges.
23. Get Paid To Walk
There are a few ways to make money by walking, including becoming a pet-sitter or dog-walker, delivering food or packages, and even participating in research studies.
Pet-sitting and dog-walking are great ways to get some exercise while making some extra cash. You can advertise your services on websites like Rover or Care.com, or even on local community Facebook groups. Once you build up a clientele, you can set your own schedule and rates.
If you don’t mind doing a little bit of extra work, you could also sign up to deliver food or packages for companies like DoorDash, Postmates, or Amazon Flex. You can typically set your own schedule and rates for these gigs.
24. Wait tables
Working as a waiter or waitress can be a great way to make some extra money fast. In fact, it is easy to net over $300 if you are personable and do your job well!
In most cases, you will be able to keep all of the tips that you earn, which can add up to a significant amount of money over time.
Additionally, many restaurants offer their employees discounts on meals, which can further increase your earnings. If you are looking for a way to make some quick cash, waiting tables may be the perfect solution for you as you can start within days.
25. Provide Yard Work Help
Another way to make money fast is by providing yard work services. This could involve mowing lawns, shoveling snow, trimming hedges, or any other type of outdoor work.
You can use online platforms such as TaskRabbit, Nextdoor or Craigslist to find clients, or you can reach out to local businesses or individuals who need help with their yards.
From personal experience, my kids have averaged over $300 a day – just for snow shoveling! Good hustle for those preteens!
This is yet another way to make some quick cash by doing odd jobs for people in your community.
26. Read Books and be Paid as a Reader
There are a few ways to make money by reading books. You can start a book blog and get paid to review books, you can work as a freelance book editor, or you can even get paid to read books!
If you want to start a book blog, you first need to find a niche. What kind of books do you want to review? Once you’ve found your niche, the next step is writing reviews. You can use sites like Amazon and Goodreads to find books to review, and then post your reviews on your blog.
If you’re interested in working as a freelance book editor, there are a few things you need to know. First, you need to have experience editing books. Second, you need to be able to showcase your work. And third, you need to be able to market yourself so that potential clients can find you.
One way that you can make money by reading books is by becoming a beta reader. Beta readers are people who read manuscripts before they’re published and provide feedback on the story and the writing. If you’re interested in becoming a beta reader, the best way to find work is by networking with authors and editors who might need your services.
27. Sell a Skill on Fiverr
There are many ways to make money fast, but one way you can monetize a skill you have is to sell it on Fiverr.
Fiverr is a marketplace where people can buy and sell services starting at $5.
If you have a particular skill or talent, you can create a gig offering that service. Once your gig is created, buyers can purchase your service and leave a review.
If you deliver quality work, you will get repeat customers and your gigs will start to rank higher in the search results. This will help you make more money faster.
28. Profit from Baked Goods & Get Rewarded
Cake pops are hot! As most professional bakeries, charge between $1-4 per cake pop, you would need to sell 75 cake pops to make your goal of $300 a day.
Same with sourdough bread! people are selling homemade sourdough bread for $5-8 per loaf. So, you need to sell around 40 loaves to hit 300 dollars fast.
Another option is to offer baking classes in your community to make extra money. This is a hot thing to do for couples and kids.
There are many delicious ways to make money fast from baking.
29. Flip Stuff Online and Be a Reseller
One way to make money fast is to resell items on eBay, Facebook Marketplace, or Craigslist.
You can find items to resell at garage sales, thrift stores, and even online. Once you have found an item to resell, list it on eBay and set a starting price. Be sure to research the item so you know how much it is worth and what similar items have sold for in the past. You can also offer to ship if you are selling a larger item.
Check out this free training from Flea Market Flipper!
30. Negotiate a Pay Rise
There are a few key things you can do to increase your chances of successfully negotiating a pay rise:
Do your research: find out what the average salary is for your role in your area, and what other people in similar roles at other companies are being paid. This will give you a good starting point for negotiations.
Build a case: put together a document or presentation detailing your successes and value to the company. This will help you make your case in a clear and concise way.
Be prepared to walk away: if the company isn’t willing to meet your demands, be prepared to walk away. This may mean looking for another job, but it’s important to stand up for yourself and not accept less than you’re worth.
This is a great way to increase your paycheck!
31. Do odd jobs for people
One way to make some quick cash is to do odd jobs for people in your neighborhood.
This could be anything from mowing lawns and shoveling snow to painting fences and washing cars. If you have a knack for handyman work, you can list your services on websites like TaskRabbit or Craigslist.
You can also sign up with a local home improvement store, such as Home Depot or Lowe’s, to find customers who need help with small projects around the house.
You can house sit for people in your community who are going out of town and need someone to watch their home while they’re gone. Check out a great place with Trusted Housesitters.
32. Start Copywriting
Copywriting is a skill that can help you make money fast. If you can write persuasively, you can earn quick cash by writing articles, sales letters, and web copy.
Here’s how to get started:
Find a need. Look for businesses that are in need of content and start pitching them your services.
Write a great proposal. Your proposal is your chance to sell your services, so make sure it’s well-written and persuasive.
Get paid! Once you’ve landed a client, get to work and start earning money fast!
Check out where to find copywriting jobs.
33. Play with Dogs with Pet-sitting Services
If you love animals, you can offer pet-sitting services to earn some extra cash.
Pet owners often need someone to watch their pets while they’re away on vacation or business trips. If you love animals, this can be a great way to earn some extra cash.
You can also dog walk or pet sit for neighbors or friends.
34. Invest in Stocks or Cryptocurrency.
If you’re willing to take on some risk, you could make money by investing in stocks or cryptocurrency. However, these investments can also lose money, so be sure to research before investing.
This is one way I consistently make an extra 300 dollars a day.
However, this is after I took an investing course and months of practice. If you are analytical and enjoy patterns, this could be for you.
35. Complete online survey and earn extra cash
This is probably my least favorite, but you can make cash fast for very simple work. The amount of money you can make depends on the amount of time you’re willing to spend, and some other factors like your demographics.
Join a paid survey panel.
These panels usually work with marketing research companies who pay panelists for their participation in online and offline surveys. To join a paid survey panel, you’ll typically have to fill out a short sign-up form and provide some basic information about yourself. Once you’re signed up, you’ll start receiving survey invitations by email.
Here are the top legit survey platforms:
How much money can you make with each method?
The goal is to make 300 dollars fast, right?
It depends on the way you want to make money and the effort you put into it.
Some like virtual assistants or active trading will take longer to build up and get your experience, but it will be more lucrative as you go. On the flip side, pet sitting or house sitting is quicker to start but could be less consistent with clientele.
What are the pros and cons of each method to make money today?
There are a few different ways to make extra money, and each has its own pros and cons. For example, you could get a part-time job, start a side hustle, or take on some freelance work.
Idea #1 – Another job or More Hours
Getting a part-time job is one of the most common ways to make extra cash. The main pro of this method is that it’s relatively easy to find a part-time gig these days. You can use sites like Indeed or Craigslist to find open positions near you.
The main con of this method is that it can take up a lot of your time, which might not be ideal if you’re already working full-time or taking care of other obligations.
Idea #2 – Start a Side Hustle
Starting a side hustle is another popular option for making extra money. The biggest pro of this method is that you can often make more money with a side hustle than you would with a part-time job.
The biggest con of this method is that it takes time and effort to get your side hustle off the ground.
Idea #3 – Freelance Work Online
Taking on some freelance work is another option for making extra cash. The main pro of this method is that you can often set your own hours and rates.
The main con of this method is that it can be tough to find consistent work.
Best Way to Earn Money Fast
Ultimately, the best way to make extra money is the method that works best for you and your situation.
If you need to make some quick cash, a part-time job might be the way to go. If you’re looking to consistently make a bit more money, starting a side hustle is best.
Top ways to make money fast online
There are many different ways you can make money online.
Some of the most common include affiliate marketing, selling your own products or services on social media platforms like Instagram and Facebook, using your blog as a source of passive income, and creating e-commerce stores.
In fact, learning how to make money online for beginners is a hot topic!
Which methods are best for making long-term income?
There are a variety of methods you can use to make 300 dollars fast. While some methods may only provide you with temporary or one-time earnings, others have the potential to provide you with more long-term income.
Some of the best methods for making long-term income include:
Finding a high-paying job: If you’re looking for more sustainable earnings, then finding a job that pays well is one of the best options. While it may take some time to land a high-paying position, once you do, you’ll be able to earn a steady income that can last for years.
Starting your own business: Another great option for earning long-term income is starting your own business. This can be a great way to earn a passive income, as well as give you the flexibility to work on your own schedule.
Investing in real estate or stock market: Another option for those looking to make long-term earnings is investing in real estate or the stock market. This can be a great way to earn passive income and build up wealth over time.
What are some tips for making money fast?
These are just a few ideas to get you started.
Remember, the key is to be creative and think outside the box. There are many opportunities out there for those who are willing to look for them. With a little effort, you can find a way to make money fast.
Do you need to know how to make 2000 fast?
Tips to Earn Real Money and Make Extra Money Fast
How can you make sure you make the most money possible?
There are a few key things to keep in mind if you want to make the most money possible:
1. Be Clear On Your Expectations
If you want to make extra money, you need to be clear on what you want. Specifically how you are looking to make and how many hours you are going to commit.
Also, you need to communicate this to others around you like friends, family, or kids.
2. Set Prices People Make in Reality
Making sure that you have a clear understanding of the services you’re offering and what the going rate is for those services is crucial.
If you don’t know how much your time and effort are worth, it’s easy to undervalue yourself and end up making less money than you could have. Likewise, if you overprice yourself, people are less likely to use your services.
3. Negotiate a Ton
Don’t be afraid to negotiate. If you feel like you’re worth more than what the other person is offering, try to negotiate for a higher price.
Don’t be afraid to negotiate when it comes to prices. If you feel like your time is worth more than what the other person is offering, try negotiating for a higher price. It never hurts to ask, and often times people are willing to pay more than they initially offered if it means getting better quality work.
4. Work Hard and Make Real Cash – Not Free Cash
Be willing to work hard. The more effort you put in, the more money you’re likely to make.
If you’re not willing to put in the extra effort, you’re not going to make as much money as you could have.
Free cash won’t just happen; that isn’t someone you strive to be. Work hard and be paid.
Start Earning 300 dollars and Make Money Quickly
There are a lot of ways to make 300 dollars fast.
You just have to be creative and resourceful.
With this guide, you now know 35 ways to make 300 dollars fast. You can start earning extra cash today by following these methods.
You can start by looking for ways to make money in your free time, at home, or online. With a little effort, you can make 300 dollars in no time. Then, on to make 500 dollars fast.
Remember to have fun while you’re earning money! Thanks for reading and good luck!
Then, your next goal will be how to turn 10k into 100k.
Know someone else that needs this, too? Then, please share!!
A pension plan is a retirement plan offered by employers that guarantees income to workers after retirement. Pension plans are also known as defined-benefit plans because the monthly benefits the worker will receive during retirement is defined.
When defining those benefits, a pension may offer an exact dollar amount to be paid in retirement, such as $100 per month. But more often, the benefit involves calculating a number of factors, including how much the worker earned while working, how long they served the company, and how senior they were when they retired.
How to Get a Pension Plan
Unlike other different types of retirement plans, such as IRAs and Roth IRAs, an investor who wants to save for retirement can’t just go out and invest in a pension. Like 401(k)s, pensions need to be offered by an employer.
While pension plans were once a mainstay of how companies took care of their workers, they’ve become increasingly rare in recent decades. Only a small relative percentage of private sector employers offered some form of pension to their employees as of 2023.
The biggest reason why companies no longer offer pensions is that it’s cheaper for them to offer defined contribution plans, such as 401(k) or 403(b) plans. But if an American works for the federal, state or local government, there’s a good chance that they may qualify for a pension. Among state and local government workers who participate in a retirement savings plan, a majority are in a pension plan.
How Pension Plans Differ from Other Retirement Plans
The key difference between pension plans and other retirement plans comes down to the difference between a “defined benefit” plan like a pension, and a “defined contribution” plan.
In a defined benefit plan, such as a pension, it’s clear how much workers will receive. In a defined contribution plan, it’s conversely clear to employees how much they put into it. Unlike a pension, a defined contribution plan doesn’t promise a given amount of benefits once the employee retires.
There are some plans, such as a 401(k) plan or 403(b) plans, in which an employer has the option to contribute. They are not, however, required to. In these plans, the employee and possibly the employer will invest in the employee’s tax-advantaged retirement account. At the time of the employee’s eventual retirement, the amount in the fund can depend heavily on how well the investments in the account performed.
There are still other retirement plans, like IRAs and Roth IRAs, which a worker can also fund. Like 401(k) plans, the ultimate payout often depends largely on the performance of the investments in the plan. But unlike 401(k)s, an employer isn’t involved or required to sponsor an IRA.
One big advantage that pensions have over defined contribution plans is that pensions are guaranteed by the federal government through the Pension Benefit Guaranty Corporation. It effectively guarantees the benefits of pension-plan participants. But the PBGC does not cover people with defined contribution plans.
Recommended: What Is a Money Purchase Pension Plan (MPPP)?
What to Do If You Have a Pension Plan
Workers with pension plans should talk to a representative in their human resources department and find out what the plan entitles them to. Every pension plan is unique. An employee may benefit from looking into the specifics, especially in terms of how much the plan might pay, whether it includes health and medical benefits, and what kind of benefits it will offer a spouse or family members if the worker dies first.
For someone just starting in their career, they may also want to ask when their pension benefits vest. In many plans, the benefits vest immediately, while others vest in stages, over the course of as many as seven years, which could affect their plans to move on to a new job or company.
One way to get a better handle on what a pension may pay over time is to inquire about the unit benefit formula. Utilizing that formula is how an employer tallies up its eventual contribution to a pension plan based on years of service.
Most often, the formula will use a percentage of the worker’s average annual earnings, and multiply it by their years of service to determine how much the employee will receive. But an employee can use it themselves to see how much they might expect to receive after 20 or 30 years of service.
Pros of a Pension Plan
Perhaps the biggest pro of a defined-benefit plan is the guarantee of predictable income from the day a worker retires until the day they die. That’s the core promise that the PBGC protects.
Many pension plans also include related medical and other benefits for the employee, as well as related benefits for surviving spouses. Those benefits vary widely from plan to plan and are worth investigating for workers with a pension. Employees who are considering a new role in an organization that offers a pension should also research such features.
A defined contribution plan can also motivate the worker to regularly calculate the amount they’ll have to live on after they retire, and when they can retire. That can open up questions about what they’ll do if they get sick or need at-home care. And by asking those questions, they can look into things like supplemental medical insurance or long-term care insurance, in order to better protect themselves down the road.
Cons of a Pension Plan
But the greatest strength of a pension plan — its reliability and its guarantee — can also be its biggest weakness from a planning standpoint. That’s because a pension can give would-be retirees a false sense of security.
A pension, with its well-insured promise of income, can lead people to ignore important questions and avoid strict budgeting for basic living expenses. That flat monthly income can also lead people to believe that their expenses will be the same each month.
And that can lead retirees to avoid planning for increased overall living expenses due to the effects of inflation or sudden, unexpected expenses that inevitably crop up. There’s also the likelihood that their expenses later in life could be significantly higher, as they’re able to accomplish fewer daily necessities themselves.
That’s why, regardless of how thorough a pension plan is, it can pay to save for retirement in other ways, including through a 401(k), IRA or Roth IRA. Just because a worker has a pension, that doesn’t mean that it’s the only retirement plan that’s right for them. And employees will benefit from preparing for retirement early.
The Takeaway
Pension plans are a type of savings plan that are offered by employers, potentially guaranteeing income to workers after they retire. Pension plans are defined-benefit plans, and differ in some key ways from IRAs or 401(k)s. Pensions have become less common in recent decades, and they have their pros and cons, like any other financial product or service.
Workers could get started investing today by opening an account with SoFi Invest®. SoFi Invest offers an active investing platform that allows users to choose their stocks and ETFs without paying commissions, but other fees apply.
SoFi Invest also offers an automated investing solution that invests users’ money based on their goals and risk tolerance without charging a advisory fee.
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If you have an 810 credit score, congratulations. The score is considered excellent and could help you qualify for loans with more favorable terms or premium rewards credit cards.
Let’s take a closer look at what an 810 credit score means and some different strategies that could help boost your credit score.
What Is a Credit Score?
A credit score is a three-digit number that reflects a consumer’s creditworthiness, or ability to pay back loans in a timely manner. Scores range from 300 to 850. Generally speaking, the higher the credit score, the better you tend to appear to a potential lender.
The two most popular credit scoring models are FICO and VantageScore. To calculate your score, both use credit history information provided by the three major credit bureaus: Experian, TransUnion, and Equifax.
Check your score with SoFi Insights
Track your credit score for free. Sign up and get $10.*
Reasons to Care About Credit Scores
There are several reasons why a good credit score is essential to your financial health. Here are three to keep in mind.
It can increase your chances of being approved for a loan
The higher your credit score, the more likely lenders will approve loan or credit card applications. Whether it’s to purchase a house, buy a car or private student loans, having access to loans can help you achieve some big financial goals. Note that some banks may also run credit checks before issuing you an account.
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You may have access to better loan rates and terms
Lenders are more likely to offer consumers with better credit scores lower interest rates and more favorable terms because they’ve proven they pay back their loans on time. A higher credit score may also get you access to other types of products such as premium rewards credit cards.
You could save money
When you move into a new home, the utility company or your landlord may check your credit score to determine how much of a security deposit you’ll need to put down. Typically, the lower your score, the higher your deposit. Though the money is often refundable, it’s usually held in a third-party account that you won’t have access to. Potential employers may also run a credit check before you’re offered a job.
Recommended: Everything About Tri-Merge Credit Reports and How They Work
Is an 810 Credit Score Considered Good or Bad?
An 810 credit score is considered very good. In fact, just 21% of consumers in the U.S. have a credit score of 800 or higher. By comparison, the national average credit score is 714, according to Experian.
What Does an 810 Credit Score Mean?
Having an 810 credit score means you’ve proven through your credit behavior that you are likely to pay back loans on time. As mentioned above, a score of 800 or above places you in the top tier of consumers.
You are also considered to be in the “exceptional” range for your FICO score and “superprime” for your VantageScore. This means lenders are more likely to approve you for loans and offer you access to products such as loans with lower interest rates and premium credit cards. Landlords and utility companies may also ask for a lower security deposit amount (if at all).
How to Build Credit
Looking to build your credit? You have several avenues to explore. Below are a few to consider. Note that there’s no one-size-fits-all solution, so it’s a good idea to research all the options available to you.
Use a Credit Card
Even if you’re just starting out in your career or only have fair credit, you may still be able to be approved for a credit card. For instance, you can open a credit card that’s specifically for college students. Or you may want to consider a secured credit card, where you pay a refundable security deposit that acts as your credit line.
Whatever purchases and payments you make on the card are reported to the three major credit bureaus. This in turn helps to establish your credit history.
Become an Authorized User
An authorized user means that your name will be put on someone else’s credit card account. You can use the credit card much like the primary cardholder can, though this person is ultimately responsible for ensuring the minimum payments are paid on time.
If the primary cardholder has a good credit score, then their positive credit history may be added to yours.
Add Monthly Bills to Your Credit Report
Some free credit monitoring services will report your utility and rent payments to your credit report. Doing so can help build your credit history. Even if there is a small fee involved, it may be worth using for a few months, depending on your financial situation.
Recommended: How to Read and Understand Your Credit Report
Take Out a Credit Builder Loan
Credit builder loans are designed to help borrowers who are looking to build their credit. They’re similar to a personal loan, except you don’t initially receive the loan proceeds. Instead, the money will be held in a separate savings account until you pay off the loan. Meanwhile, your payment activity will be reported to the credit bureaus.
How Long Does It Take to Build Credit?
It can take several months for you to establish and build credit. This is because credit scoring models need enough information from your credit history in order to assess your creditworthiness.
As you work on building your credit, do your best to practice good financial habits, such as making on-time payments.
Credit Score Tips
Even if you have an excellent credit score, it’s a good idea to keep up good credit behavior. This includes:
• Consistently making on-time payments
• Keeping your credit utilization, or the percentage of the available limit you’re using on revolving credit accounts, as low as possible
• Avoiding applying for too many new loan or credit accounts at once
• Keeping your longest credit card or loan account open
• Regularly monitoring your credit score
• Checking your credit history and immediately disputing any errors you find
How to Check Your Credit Score
Wondering how to find out your credit score for free? You have several options. The first is your credit card statement. Many credit card issuers provide customers with a complimentary look at their score. To find it, you may need to log into your account or check your monthly credit card statement.
Another option is to use credit score monitoring tools; some are free, others require a payment. Before opening an account, compare each tool to see which one best serves your needs.
The Takeaway
It’s good news if you have an 810 credit score and a sign that you have a track record of paying back your loans. A good score may help improve your access to loans with better terms or premium or luxury credit cards. If you want to improve your score — or just maintain it — you can try practicing good financial habits, like consistently making on-time payments, keeping tabs on your credit score, and disputing any errors.
If you need help managing your spending and saving, consider using a money tracker app. The SoFi Insights app connects all of your accounts in one convenient dashboard. From there, you can see all of your balances, spending breakdowns, and credit score monitoring, plus you can get other valuable financial insights.
Stay up to date on your finances by seeing exactly how your money comes and goes.
FAQ
What is a decent credit score for a 23-year-old?
Chances are, at 23 you’re probably still building your credit. According to Experian data, the average credit score for people aged 18 to 25 is 679. If yours is higher, then it’s considered above average.
What is the highest credit score possible in 2023?
The highest credit score you can achieve is 850 for both FICO and VantageScore scoring models.
Is a credit score of 800 good at age 23?
Whether you’re 23 or not, an 800 credit score is considered excellent.
Photo credit: iStock/Makhbubakhon Ismatova
SoFi’s Insights tool offers users the ability to connect both in-house accounts and external accounts using Plaid, Inc’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score provided to you is a Vantage Score® based on TransUnion™ (the “Processing Agent”) data. *Terms and conditions apply. (Must click on the link to be eligible.) This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the Rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed into SoFi accounts such as cash in SoFi Checking and Savings or loan balances, Stock Bits, fractional shares and cryptocurrency subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.
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. Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners. Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website . Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit. SORL0423008
If you’ve been following the banking industry lately, you know the big news around recent bank failures, which has spurred concerns for consumers about whether their money is covered by insurance from the Federal Deposit Insurance Corp. You may also have seen in the news that interest rates on accounts are high right now and that banks are offering more features and services — such as ATM fee reimbursement and two-day early direct deposit — to attract new customers.
The good news is that if you have $250,000 or less, then you’re covered by insurance — through the FDIC or the credit union equivalent, the National Credit Union Administration, or NCUA — without having to spread your cash around to multiple financial institutions. This insurance might come from your bank itself or, if you’re a customer at a neobank, your FDIC insurance may come from the bank that your institution partners with.
If you have more than $250,000, or if you just want to take advantage of high interest rates or other perks, you may want to consider opening accounts with multiple banks. Here are some of the pros, cons and considerations that come with that strategy.
What are the benefits of having accounts at multiple banks?
Besides the advantage of spreading out your accounts so you can have more FDIC insurance, which we’ll get to in a moment, there are other perks to having accounts open at multiple banks, namely that you can mix and match the best features of different institutions.
“I suggest using one bank for your checking and bill paying and then linking to one or more high-yield online savings accounts,” said Jeremy Keil, a Milwaukee-based financial advisor with Keil Financial Partners, via email. “That way you can shop around and get the highest interest [rate] but keep that link between banks for when you need to move from savings to checking or vice versa.”
For example, maybe you want a checking account at a bank that has ATM fee reimbursements or two-day early direct deposit, and you want to keep other cash at your locally owned credit union that has branches near you and high yields on its savings accounts or certificates of deposit. You could spread your money around and enjoy the best features that each institution has to offer. Another benefit to keeping savings and checking separate is that you may feel less tempted to dip into cash that is set aside for specific purposes, such as your emergency or vacation funds.
Is it bad to have multiple bank accounts at different banks?
The primary reason that it may be difficult to keep accounts open at multiple banks is that the more accounts you have, the harder it can be to keep track of their details and requirements.
“It can be tough to keep your beneficiaries and usernames straight, which are especially important if you die or become incapacitated,” Keil said.
There can be more costly downsides of juggling multiple accounts as well. Some banks have minimum balance, spending or direct deposit requirements on their accounts, and you could trigger a fee if you don’t meet those conditions.
Another consideration is that if you open a new account at a bank because you’re chasing high interest rates, that bank might not have those high rates forever.
“These rates are designed to drive new dollars into the bank that would typically not be there if there was not a special rate,” said Keith Dragisich, a community banking expert, via email. “It’s important for consumers to read the fine print of how these specials work.”
Essentially, if you’re planning to move your money around to different financial institutions regulary, you’ll need to make sure you’re on top of all the fine print.
Does FDIC insurance cover multiple accounts at the same bank?
Insurance from the FDIC and the NCUA typically covers up to $250,000 per depositor per ownership category, such as a single account, retirement account or trust account. Joint accounts are insured up to $250,000 per person, so if an account is co-owned by two people, the full amount could be covered up to $500,000.
What should I do if I want to insure more than $250,000?
There are several ways to insure more than the FDIC insurance limit of $250,000. Some ways you might consider are adding a joint account owner, opening an account that’s a different ownership category, opening a cash management account with a higher insurance limit or splitting your money among different banks.
Whether you want to better insure your money or simply want to cherry-pick the best features of different banks, opening accounts at multiple banks is a solution that could benefit you as long as you’re willing to manage the account upkeep.
I can’t believe the Grow Your Dough Throwdown is over!
It’s been an exhilarating ride, and I wish I could say that I was excited to share the results.
Alas, my portfolio got its butt kicked, while my wife’s portfolio, on the other hand, did rather well.
In fact, I think everyone kicked my butt.
Oh, well; life goes on…..
The exciting thing is that the Grow Your Dough Throw Down 2.0 is ready to launch, and I will have details at the end of this post.
Until then, let’s take a look at how I did.
TD Ameritrade – My Lousy Portfolio
If you recall, previously I had purchased five different stocks with my initial portfolio with TD Ameritrade. Two of my stocks have performed horribly: EHealthInsurance.com and Yahoo.com. My other three were doing okay, but not great. Those were Fidelity Guarantee and Life (an insurance company IPO), Dunkin Donuts, and Bank of New York. After three quarters of the year, my portfolio was down almost $100, and I knew there was no way that I would catch the leader, so I thought to myself, “Why not go big or go home?”
I sold all of my positions, then purchased RIG, which is Transocean, an offshore drilling contractor. I read about Transocean from another stock picker and he absolutely loved it, and I thought with a 17% dividend and a potential to buy on a dip, I might have a chance to walk away with the Grow Your Dough Throwdown title.
My hope fell short. Really short.
As oil continued to drop, so did Transocean’s stock price. My total account value is down to $551.73, for a net return loss of 45% for the year. In case you haven’t figured this out yet, that is not how you Grow Your Dough, not in the very least. I went from having a balanced portfolio to becoming a speculative investor, which is basically what I warn all my clients against.
Luckily, it was only for $1000, and the stock still could come back… ha, ha because you heard that one before. Either way, I definitely did not win the Throwdown, but I don’t think I took last.
Is there a trophy for next to last? 🙂
Ally Invest – The Blue Chippers
Ally Invest , then Tradeking, was the brokerage firm that I used to build a Blue Chip portfolio. The stocks I selected were General Electric, Coca-Cola, McDonalds, Microsoft, and Verizon. For the year, the account didn’t do as great as I had hoped, having a total value of $1032.41 at year-end. Three of the stocks ended up being down for the year – General Electric, McDonalds and Verizon – with the other two being up. Either way, we are still up, so I can’t be too unhappy about that.
Motif – The New Kid on the Block
Motif, which you will hear more about in a sec, was the investment platform that I was least familiar with. The more Motif investing reviews I read and how it is structured, the more I like it, especially for those who are wanting to invest in a specific period over a sector in the market.
I purchased three different Motifs: the Onward Online Ad’s Motif, the Cleantech Everywhere Motif, and the Obamacare Motif. For the end of the year, my portfolio value is $1032.18, barely beating out the Blue Chip portfolio at TradeKing. Once again, I will share more about Motif here at the end of the post.
Betterment – So Easy
Out of all of the investment platforms I opened an account with, Betterment was no question the easiest one to get my money funded and then invested. It’s even easier than opening an account at Capital One 360.
For the year, my total account balance is $1060.82. With how Betterment investing works, I just selected my target goal, and then they constructed a portfolio that consisted of 90% stocks and 10% bonds, which are predominantly invested in ETF’s. I’m still a big fan of Betterment, especially for those who know little about investing and want a super slick interface to get started.
Lending Club
The two peer-to-peer platforms in Prosper and Lending Club fared well for the last part of the year as well. Lending Club has a new feature where you can see your account returns, and you can also adjust that for past-due notes. Basically, this feature is for those that make defaults on their loans. For the net annualized return, with Lending Club it was 6.75%, with an adjustment account value of $1050.93.
These notes are currently past due and haven’t defaulted yet, so if those happen to pay my net annualized return for the year, they would be 12.24%, with an account value of $1090.41. Considering how low interest rates are, and having made money off your CDs, even the 6.75% is nothing to sneeze at.
Prosper
With Prosper, they currently don’t have the adjusted return, so the total value is $1086.51 for an 8.64% return.
The Winners
It definitely became a neck and neck race for who was going to win the Grow Your Dough Throw Down. Barely squeaking a victory by less than $14 was Phil Taylor from PTMoney.com. His total value was $1327.05. Below is a screen shot of some of his holdings for the year.
In a very close second place was Rob Berger from Doughroller.net. His account value year-end was $1313.55. Rob went the Tesla, AT&T, and Apple approach to yield his return.
Congratulations fellas, you both did well and definitely take down this CFP®.
Grow Your Dough ThrowDown 2.0
I am excited to announce we are going to continue the Grow Your Dough Throw Down into 2015. This time, we are going to have 20 different personal finance bloggers participate.
Motif, which I mentioned above, has agreed to be a sponsor for the event. They are going to create a custom leader board where you will be able to track my Motif, including the other 19 participant Motifs, to see how we are doing on a daily basis. I’m so excited that Motif was pumped about the Grow Your Dough Throw Down this past year, and when they approached me about creating the custom leader board and being a part of it, I was definitely all ears.
Which Savings Account Will Earn You the Most Money? – SmartAsset
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There are many types of savings accounts. Money market accounts can earn higher interest rates than traditional savings accounts. But CDs can often earn even higher rates. However, there are pros and cons to each type of account that goes beyond interest rates. Here’s what to know before you deposit your money.
If you have questions about how your savings account fits into your overall financial plan, consider working with a financial advisor.
High-Yield Savings Accounts
High-yield savings accounts are similar in many ways to traditional savings accounts and have many of the same advantages, including FDIC insurance on balances up to $250,000.
As their name suggests, high-yield savings accounts pay interest rates higher than traditional savings accounts. Interest rates change frequently, but generally, that equates to 10-20 times higher interest rates.
Other than interest rates, the biggest difference between high-yield savings accounts and traditional savings accounts is the presence of bank branches. Those that offer traditional savings accounts typically have them, while those with high-yield savings accounts don’t.
The latter is generally offered by online-only banks, and their lack of branches allows them to cut costs and offer better rates to their customers. However, the two are otherwise similar in most ways.
High-yield savings accounts, which at time of writing offered annual percentage yields above 4%, usually have a monthly transaction limit (typically six per month), and they often don’t have ATM access or check-writing privileges. Still, customers can access their money whenever they need it by transferring money electronically.
Money Market Accounts
Money market accounts are another type of saving product that offers higher interest rates than checking accounts and traditional savings accounts. The FDIC also insures balances up to $250,000.
In addition, these accounts sometimes have features like mobile check deposits and ATM withdrawals. Like high-yield savings accounts, there may be limits on the number of monthly transactions.
The best money market accounts generally have interest rates 10-20 times higher than traditional savings accounts. While some require a minimum deposit, several allow you to open an account with $0 to start.
However, some money market accounts may charge fees for maintaining a low balance or making too many withdrawals. Check the fine print and make sure you understand the terms before opening an account.
Certificates of Deposit (CDs)
Certificates of deposit (CDs) are another type of savings product that offers higher interest rates than traditional savings accounts. CDs, which are FDIC-insured, lock up your money for a certain period in exchange for a higher interest rate.
You will usually incur penalties if you want to withdraw your money before the end of the CD’s term. This makes CDs better for medium-term savings goals and for money you won’t need in the immediate future.
However, the best CD rates can be higher than rates on money market accounts or high-yield savings accounts, so keeping your money locked up could be worthwhile if you want the best rate. Plus, some CDs have no minimum to get started, so you can deposit as much as you want.
But unlike savings accounts, you often can’t make additional deposits to the account. Thus, they may not be the best choice if you don’t have a lump sum to deposit. Still, the interest rates CDs offer make them a good choice for those with funds to spare.
Comparing and Contrasting Savings Accounts
There are several things to keep in mind when deciding which type of savings account is right for you. Here are something things to keep in mind:
Interest rates: If you want to earn a return on your money, interest rates are the first thing to check. High-yield savings accounts, money market accounts and CDs can all offer high-interest rates today, with CDs having some of the highest rates. However, CDs require you to lock up your money for a certain period.
Fees: Some banks or credit unions might charge you maintenance fees or a fee if your balance falls below a certain level. These fees can eat into your earnings on the account, so it’s important to keep them in mind.
Minimum balance requirements: High-yield savings accounts, money market accounts and CDs can all have a minimum balance requirement to open an account, depending on the bank. Others might require a minimum balance to earn the highest interest rate.
Liquidity: The ease of accessing your money may vary depending on the type of account and the bank. For instance, money market accounts and some high-yield savings accounts may allow you to write checks or withdraw money from an ATM. In contrast, CDs usually require you to leave your money alone until the end of the term.
Each type of savings account has its own set of pros and cons. The best choice will depend on your savings goals.
Bottom Line
High-yield savings accounts, money market accounts and CDs can all have competitive interest rates that allow your money to grow. The best CDs offer some of the highest interest rates, but they require you to keep your money locked away to earn the best rate. Thus, it’s important to consider not only the interest rate but also factors like fees, minimum balance requirements and liquidity before deciding which type of savings account is best for you.
Tips for Opening a Savings Account
A financial advisor can help you work through your banking needs and put together a plan that works for your unique situation. SmartAsset’s free tool matches you with up to three vetted financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
The best savings accounts pay some of the highest rates and often do away with costly fees. See SmartAsset’s list of the best savings accounts to find one that’s right for you.