Amazon Prime members can signup for the Chase Amazon Prime Rewards Visa card and get a $200 Amazon gift card bonus instantly upon approval. *This offer will begin on November 22nd and continue through November 28th.*
Card Details
No annual fee
No foreign transaction fee
Card earns the following rates:
Earns 5% back at Amazon.com & Whole Foods with an eligible Prime membership
Earns 3% back at Amazon.com & Whole Foods without an eligible Prime membership
Earns 2% back at restaurants, gas stations, and drug stores
Earns 1% back on all other purchases
There are often special offers to get 10% – 20% back on select specially-marked Amazon purchases for cardholders
This card does not appear to be subject to the 5/24 rule
An impressive number of online banks offer relatively high yields on savings accounts, money market accounts, and even checking accounts. Yes, even when interest rates are low.
And everyone needs a checking account. Why not choose one with a yield that rivals the best high-yield savings accounts?
Best High-Yield Checking Accounts
Many of these high-yield checking accounts are on our roundups of the best free checking accounts and best checking accounts with monthly maintenance fees. If you hate monthly service fees, know that most banks happily waive those fees when you meet minimum balance or monthly transaction requirements.
Wealthfront Cash Account
Our Rating
The Wealthfront Cash Account earns 4.30% APY on all balances — one of the best cash account yields on the market. It links seamlessly with Wealthfront’s other core product, a low-cost robo-advisor.
Account APY
Minimum Balance
Monthly Fee
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Wealthfront pairs a low-cost investment management solution with an excellent high-yield checking account, the Cash Account.
The Wealthfront Cash Account has a virtually nonexistent minimum opening deposit, high yields on all balances, no account fees, and a great lineup of value-added features, including Self-Driving Money™.
Self-Driving Money™ is a powerful money management automation tool that effortlessly allocates deposits among near-term expenses, variable-term savings goals, and longer-term investment objectives, all while making sure your emergency fund is topped up and you’ve got enough left over to enjoy life.
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Aspiration Spend & Save
Our Rating
Get up to 3.00% APY on the first $10,000 in your account and earn up to 10% back on purchases with select Aspiration partners.
Account APY
Up to 3.00% APY on the first $10,000
Minimum Balance
Monthly Fee
$0 for a standard account, $7.99 for Aspiration Plus
Our Rating
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Aspiration Spend & Save is two accounts in one:
Aspiration Debit, a rewards checking account that pays up to 10% back on eligible purchases with Conscience Coalition partners, companies that have committed to helping the planet (and caring more about their bottom line in the process).
Aspiration Save, a high-yield savings account that links seamlessly to Aspiration Debit and earns up to 3.00% APY on the first $10,000 in the account.
You need to pay $7.99 per month for an Aspiration Plus membership to earn 10% back and 3.00% APY. Otherwise, cash back maxes out at 5% and your yield is 1.00% APY on the first $10,000.
The Aspiration Save Account’s up to 3.00% Annual Percentage Yield (“APY”) is variable, subject to change, and only available to customers enrolled in Aspiration Plus after conditions are met. Customers not enrolled in Aspiration Plus receive 1.00% APY after conditions are met. The Aspiration Spend & Save Accounts are cash management accounts offered through Aspiration Financial, LLC, a registered broker-dealer, Member FINRA/SIPC, and a subsidiary of Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a bank.
Go2Bank
Our Rating
Earn up to 7% cash back when you buy eGift cards in the app. Plus, earn 4.50% APY paid quarterly on savings balances up to $5,000.
Account APY
Minimum Balance
Monthly Fee
$5, waived with direct deposit
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GO2Bank combines a rewards checking account and a high-yield savings account into one package. The savings side has an impressive yield on the first $5,000 (4.50% APY), while the checking side pays up to 7% cash back on eligible electronic gift card purchases (GO2Bank calls them “eGift cards”) made in the app.
GO2Bank does have a monthly maintenance fee, but it’s waived with any qualifying direct deposit. Another highlight: the option to deposit cash at more than 90,000 retail locations nationwide.
Active GO2Bank account required to receive an eGift Card. eGift Card merchants subject to change
GO2Bank, Member FDIC. Interest paid quarterly on the average daily balance of savings during the quarter up to a $5,000 balance and if the account is in good standing. 4.50% Annual Percentage Yield (APY) as of April 2023. APY may change before or after you open an account. The average national savings account interest rate of 0.05% is determined by the FDIC as of 12/14/20. Visit https://www.fdic.gov/regulations/resources/rates/ to learn more. Fees on your primary deposit account may reduce earnings on your savings account.
Direct deposit early availability depends on timing of payor’s payment instructions and fraud prevention restrictions may apply. As such, the availability or timing of early direct deposit may vary from pay period to pay period. The name and Social Security number on file with your employer or benefits provider must match your GO2Bank account exactly or we will decline your deposit.
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Signature Federal Credit Union might not be as well-known as banking giants like Citi and Chase, but its high-yield checking account is definitely worth going out on a limb for.
Meet the qualifying activity requirements each month and you can earn 4.00% APY on balances up to $20,000. That’s many times higher than the national checking account average.
To qualify for the advertised yield in any given statement cycle, do all of the following:
Receive a direct deposits totaling $1,000 or more.
Enroll in electronic statements.
Use your debit card to make at least 15 eligible purchases online or in person.
Apply Now
M1 Spend
Our Rating
Earn 3.30% APY with no minimum balance when you upgrade to M1 Plus. Additional benefits include 1% cash back on debit purchases and up to 10% back on credit card purchases.
Account APY
Minimum Balance
Monthly Fee
$125 per year to earn interest (after year one)
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M1 Spend is a free cash management account from M1 Finance, a digital banking, investing, and lending platform. But if you want to earn interest on your M1 Spend balances, you need to upgrade to M1 Plus, which costs $125 after the first year.
It’s worth upgrading. In addition to 3.30% APY on all M1 Spend balances, M1 Plus gets you 1% cash back on debit card purchases and up to four ATM fee reimbursements each month. And that’s just on the checking side — M1 Plus comes with investing and borrowing benefits too.
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Quontic High Interest Checking
Our Rating
Earn 1.10% APY on eligible balances when you make at least 10 qualifying transactions in a statement period. Plus, enjoy fee-free access to more than 90,000 ATMs across multiple networks in the United States.
Account APY
Minimum Balance
Monthly Fee
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Quontic High Interest Checking is a free checking account with an attractive yield for anyone able to clear the relatively low qualifying activity bar: making 10 or more qualifying debit card point-of-sale transactions valued at $10 or more within the statement cycle. Do this and you’ll earn 1.10% APY on all balances.
Note that Quontic used to limit interest payments to the first $150,000 in the account. This restriction has been void for a while, but there’s always the chance it could come back.
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Nationwide Advantage Checking
Our Rating
Earn up to 0.90% APY with qualifying activities — $1,000 or more in total direct deposits and at least 10 transactions per month.
Account APY
Up to 0.90% APY
Minimum Balance
Monthly Fee
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Nationwide Advantage Checking has much in common with other interest checking accounts, albeit with a slightly less generous upper yield tier than some.
In any given month, complete qualifying direct deposits (at least $1,000 total) and transaction requirements (at least 10 of $3 or more) to earn 0.90% APY (variable with prevailing rates). Do one or the other to earn half the advertised yield — and enjoy no monthly maintenance fees and expansive ATM network access even if you can’t do either.
One catch: The debit card transactions must occur in-person to qualify. So early in the month, focus on those types of transactions rather than online purchases until you clear 10.
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Methodology: How We Select the Best High-Yield Checking Accounts
We evaluated dozens of checking accounts to build this list. We considered several key variables along the way. The accounts that made the final cut scored well on most or all of them.
Account Yield (Interest Rate)
Remember, these are high-yield checking accounts we’re talking about. Yield is a key selling point for the banks marketing them, which is why it’s the most important factor in our analysis.
Monthly Fee & Waiver Options
The best high-yield checking accounts are either truly free, meaning they don’t charge monthly fees under any circumstances. Unfortunately, truly free checking accounts aren’t as common as they used to be, so we make exceptions for accounts that make it easy to get monthly fees waived with a qualifying direct deposit or clearing a reasonable minimum balance.
Bonuses and Rewards
The best high-yield checking accounts tend to offer sign-up bonuses for new account holders, rewards programs that pay you back for eligible purchases, or both. It’s not a deal-breaker when high-yield checking accounts lack these features, but all else being equal, we prefer that they do.
Balance Requirements & Limits
We believe you shouldn’t have to save up a fortune to benefit from a high-yield checking account. Most of the accounts on this list have no minimum balance or very low minimum balances. A few do have maximum balances to earn interest, but those are high enough not to impact most users.
ATM Access
Cash is less and less common these days, but ATM access is still important for many checking account users. And we believe you shouldn’t have to pay a fee to get your money. This is why, all else being equal, we prefer high-yield checking accounts with big fee-free ATM networks.
Geographic Availability
Some high-yield checking accounts have geographic restrictions, either because you have to open them in a branch or the banks offering them simply don’t operate in certain states. We exclude accounts with strict geographic restrictions and prefer 50-state coverage when possible.
High-Yield Checking FAQs
Choosing a checking account isn’t as simple as it sounds. You’ll almost certainly have some questions as you get into it, so we’ve preemptively answered some of the most important.
How Much Interest Do High-Yield Checking Accounts Pay?
It depends on the bank’s policy and prevailing interest rates. However, a good rule of thumb is that the best high-yield checking accounts pay interest on par with the top high-yield savings accounts.
Are There Any Requirements to Earn Interest?
Some high-yield checking accounts attach no strings at all to interest payments, but many do. The most common requirements include:
Setting up and maintaining a qualifying direct deposit
Meeting a monthly transaction minimum
Meeting a monthly or daily minimum balance
What’s the Maximum Balance to Earn Interest?
Many high-yield checking accounts pay interest on all balances, which is ideal if you keep a big financial buffer in your checking account. Others cap interest payments though. Usually, the cap is relatively high — $5,000 or more.
How Much Do High-Yield Checking Accounts Cost?
Ideally, nothing. And the best high-yield checking accounts are indeed free checking accounts. For accounts that do charge a monthly maintenance fee, we prefer easy waiver options, such as any direct deposit or a low minimum balance ($500 or below).
Are High-Yield Checking Accounts Actually Savings Accounts?
Sometimes. The line between checking and savings is blurrier these days because many banks and financial technology apps package checking and savings products into the same digital interface. Several of the accounts on this list are package deals.
Final Word
Like mortgage rates and CD yields, checking account yields rise and fall as benchmark interest rates change.
During periods of economic uncertainty, when benchmark rates tend to be more volatile, these changes can occur with disorienting frequency. The yield you expect on that shiny new online checking account might not be the yield you actually receive.
The silver lining is that competition for new checking account customers remains fierce, especially among online banks and smaller brick-and-mortar institutions without household name status.
That means checking account yields will continue to entice new account holders, wherever interest rates go and irrespective of what happens on the savings account front.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Panic selling is when a large number of investors want to sell their holdings at the same time and it creates a drop in prices. That drop scares other investors into selling, which causes prices to fall still further, which frightens more investors, and so on.
The resulting panic can erase vast amounts of wealth. It can take weeks or even years for the markets to recover from a serious panic-selling event.
For years, the popular advice on panic selling for most investors was simple: Don’t panic. The logic being that over time, and through major financial crises, the equity markets have tended to rebound and rise.
But even if an individual investor resists the urge to sell, a bout of panic selling in the markets could still have an impact on their wealth, and their plans. The more an investor knows about panic selling, the more informed they will be when and if panic sets in.
Panic Selling and Stock Market Crashes
Stock markets — and the market for anything from housing to basic commodities — go down when there are more people selling than buying. And sometimes in the stock markets, the sellers outnumber the buyers to such a degree that sellers panic and are willing to take almost any price to get cash for their investment.
When panic grips enough investors, the markets can crash.
Recommended: What Is Active Investing?
Throughout the history of every kind of market, panic occasionally sets in. Sometimes it’s a major global event that sets it off, like what happened with the stock markets in March of 2020 as the global COVID-19 pandemic picked up speed and countries entered lockdown.
Other times, it’s a matter of a given asset — like housing and real estate in 2008 — being bid up to unrealistic levels, followed by the mass consensus of what it’s worth changing seemingly overnight. The history of U.S. recessions is full of these highly emotional market changes.
What Causes Panic Selling?
While panic is a very human response to the prospect of major financial loss, there are also other factors that can trigger investors to start panic-selling stocks, including: margin calls, stop-loss orders, and algorithms.
Panic Selling and Margin Calls
In the Great Crash of 1929, there were many investors who had borrowed heavily to invest in the stock market. When the markets dropped, they received something known as a margin call, requiring that they pay back the loans they took out to invest.
Those margin calls required that they sell potentially even more stock to pay back the loans, which caused the markets to fall even further.
Panic Selling and Stop-loss Orders
Similarly, there are trading programs that can throw fuel on the fire of a bout of panic selling. These can be as simple as a stop-loss order, a standing order to buy or sell a particular security if it ever reaches a predetermined price, which investors commonly use in their brokerage accounts.
A stop-loss order can be a way to take advantage of price dips to buy a stock at a discount. But during a sudden drop in the markets, stop-loss orders often lead to automatic sales of stocks, as investors try to lock in their gains.
These automatic sales — in large enough numbers, can accelerate the decline in a market, and contribute to the panic.
Panic Selling and Algorithms
There are algorithms employed by major financial institutions and professional investors that will automatically sell if the price of a given stock falls to a certain level. The crash of 1987 was caused in part by some of the first computerized trading programs.
And in 2010, one trader who lost control of his highly sophisticated trading software was responsible for the “flash crash,” which caused roughly a trillion dollars of market capitalization to disappear in under an hour.
The system-wide risk presented by these tools is one reason that most major stock exchanges have installed a series trading curbs and “circuit breakers” in place to slow down panic selling and give the traders who use these programs to recalibrate them before a full-fledged selling spree can run out of control.
The Risks of Panic Selling
When markets drop suddenly, it can be scary for investors. And one of the biggest risks may be to give into that fear, and join in the selling.
But one thing to remember is that markets go up and down, but an investor only loses money when they sell their holdings. By pulling their money out of the stock market, an investor not only accepts a lower price, but also removes the chance of participating in any rebound.
Loss is a big risk of panic selling. People who invest for goals that are years or decades away can likely weather a panic. But if a person is investing for retirement, a sudden panic just before they retire can create a major problem, especially if they were planning to live off those investments.
The danger of sudden, panic-driven drops in the market is one reason it makes sense for investors to review their holdings on a regular basis, and adjust their holdings away from riskier assets like stocks, toward steadier assets like bonds, as they get nearer to retirement.
That risk is also why most professionals recommend people keep 6-12 months of expenses in cash, in case of an emergency. That way, even if a financial crisis causes a person to lose their job, they can stay in the market. It’s a way to protect their long-term plans from being jeopardized by everyday expenses.
Finding Opportunities in Panic Selling
During a panic, there are typically enough scared people making irrational decisions to create valuable buying opportunities. The stock-market crashes in 1987 and in 2008, for instance, were each followed by a decade in which the S&P 500 rewarded investors with double-digit annual returns. (As always, however, past performance is no guarantee of future success.)
The problem is that there’s no way to know when a panic has reached its end, and when the market has fallen to its bottom. Professional traders with complex mathematical models have had mixed results figuring out when a market will rebound. But for most investors — even savvy ones — it’s a guessing game at best.
There are two ways an investor can try to take advantage of a bout of panic selling:
1. The first is not to panic.
2. The other is to keep investing when the market is down, while stocks are selling for much lower prices.
Dollar Cost Averaging
One way to take advantage of panic selling is with dollar cost averaging. With this long-term plan, an investor buys a fixed dollar amount of an investment on a regular basis — say, every month. It allows an investor to take advantage of lower purchase prices and limits the amount they invest at when valuations are higher. As such, it’s a strategy for all seasons — not just during a panic. Most investors already employ some form of dollar-cost averaging in their 401(k) plans.
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The Takeaway
Steep drops in the stock market are usually headline news. The causes aren’t always clear or easy to understand. So it makes sense that a sudden drop in the markets can cause even seasoned investors to make mistakes. This is a real risk. But it can also create opportunities.
That’s why it’s important for investors to revisit their financial plan regularly, to make sure they can weather the storm, and still be on track to reach their goals — even if a market decline means they have to take a few steps back.
Ready to invest in your goals? It’s easy to get started when you open an Active Invest account with SoFi invest. You can invest in stocks, exchange-traded funds (ETFs), and more. SoFi doesn’t charge commissions, but other fees apply (full fee disclosure here). Members can access complimentary financial advice from a professional.
For a limited time, opening and funding an account gives you the opportunity to win up to $1,000 in the stock of your choice.
SoFi Invest® The information provided is not meant to provide investment or financial advice. Also, past performance is no guarantee of future results. Investment decisions should be based on an individual’s specific financial needs, goals, and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC registered investment advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or prequalification for any loan product offered by SoFi Bank, N.A. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Claw Promotion: Customer must fund their Active Invest account with at least $10 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions. SOIN0423037
Many aspiring credit card users face a chicken-and-egg problem. You need a credit score, and a decent credit score in most cases, to qualify for most credit cards. But it’s hard to establish and build credit without a credit card.
The Petal® 2 “Cash Back, No Fees” Visa® Credit Cardoffers a way around that. It’s an unsecured cash-back credit card that doesn’t require a FICO score as a condition of approval. That means it’s an ideal first credit card for applicants who don’t want to tie up their money in a secured credit card.
The Petal 2 card isn’t right for everyone, though. Consider the whole package before you apply.
What Is the Petal 2 Card?
The Petal 2 “Cash Back, No Fees” Visa Credit Card is a rewards credit card designed for first-time credit card users and others who’ve had difficulty qualifying for unsecured credit cards in the recent past. If you’re new to credit or your credit history is limited enough that you don’t yet have a FICO score, you may still qualify for this card based on income and other noncredit factors.
Petal 2 has a straightforward cash-back rewards program that earns up to 1.5% back on everyday purchases and up to 10% back on purchases with select merchants. It has no annual fee and very few other fees.
Petal 2 does have a high regular APR and no 0% intro APR promotion, so it’s important to pay off purchases in full each month.
What Sets the Petal 2 Card Apart?
It should already be clear that Petal 2 is not your typical credit card. It stands out from most others in several key ways:
Doesn’t require a FICO score for approval. If you have a credit score, Petal considers it when you apply. But if you don’t, that’s not a deal-breaker. Petal simply uses noncredit factors to assess your application, like your income and employment status.
Up to 10% back on eligible purchases. Petal 2 caps cash-back earnings at 1.5% on most purchases, but it partners with select merchants (and more all the time) that offer 2% to as much as 10% back on eligible purchases.
Potential for a high credit limit. For an entry-level credit card, Petal 2 has an unusually high maximum credit limit — up to $10,000. Your specific credit limit depends on your income and employment status, but if you earn good money, you have a lot more leeway with this card than with most of its close competitors.
Regular cash-back earnings based on payment history. You earn 1% cash back on most purchases to start. As you build up a history of timely payments and responsible use, your regular cash-back rate increases to 1.5%. That’s a clear incentive to use this card wisely.
Is the Petal 2 Card Legit?
Yes, the Petal 2 Card is legitimate. Though most people aren’t familiar with the Petal name, Petal 2 is backed by WebBank, an FDIC-insured U.S. financial institution that has been in business for years. The card works like any other credit card backed by a U.S.-based bank.
Key Features of the Petal 2 Card
Petal 2 has a lot in common with other rewards credit cards: a cash-back program with rules it pays to learn, a credit limit based on users’ capacity to repay purchases, and a simple fee schedule. Its application standards throw some curveballs, but they’re easy enough to understand.
Cash-Back Rewards
Petal 2 earns 1% back on all eligible purchases. After 12 months of timely payments and responsible credit use, meaning you stay within your credit limit, the rate bumps up to 1.5%. There’s also bonus cash back on purchases with select participating merchants. The bonus rate ranges from 2% up to 10%, depending on the merchant. The lineup is always changing, but some very popular brands participate, including Costco and Adidas.
After each statement closing date, Petal automatically redeems your cash-back rewards to your connected bank account. You don’t have to initiate the redemption process.
Ongoing APR
From the day you open your account, all purchases you don’t pay off by the due date accrue interest at 17.74% to 31.74% (variable) APR. That’s a higher ongoing APR than most competing credit cards, so it’s even more important that you pay off your Petal balance in full each month.
Important Fees
Petal 2 has no annual fee, late fee, returned payment fee, or foreign transaction fee. Other fees may apply for specific actions like balance transfers, but there’s no ongoing cost to use this card.
Credit Limit & Increase
Petal 2 bases your initial credit limit on your credit score (if you have one) and your ability to pay your statement balance, which depends on your income. Initial limits range as high as $10,000, though most new cardholders get approved at much lower limits — a few hundred to a couple thousand dollars.
If your initial limit is low, Petal 2 offers a clear path to a higher credit limit through its Leap program. The deal is simple: You earn a credit line increase after six months of qualifying on-time payments.
Credit Required
Petal’s underwriting standards are relaxed. If you have a FICO score, you’ll likely qualify with a score as low as 600.
If you don’t have a FICO score, Petal doesn’t consider your credit history at all, instead using noncredit factors like income and employment status. The higher your income and the longer your employment history, the better your chances of qualifying without a credit score.
Advantages
Petal 2’s biggest advantages flow from its appeal to rookie applicants and its relatively generous rewards program. For example, it:
Requires no credit score to get approved. Petal 2 is one of the few unsecured credit cards that requires no credit score to get approved. In fact, all else being equal, it’s easier to qualify for this card if you have a steady job and no credit score than if you have a steady job and a very low credit score.
Requires no security deposit. As an unsecured credit card, Petal 2 requires no security deposit as a condition of account opening. If you’re still living paycheck to paycheck or close to it, this undoubtedly heightens Petal 2’s appeal.
Has potential for a high initial credit limit. Petal 2 is unusual among credit cards marketed to first-time users for offering high initial credit limits to qualified applicants. If your income and employment status allow, you could qualify for a credit limit as high as $10,000 right out of the gate with Petal 2.
No annual fee. Petal 2 has no annual fee. It costs nothing to keep this card in your wallet, no matter how infrequently you use it.
Up to 10% cash back with select merchants. Petal partners with select merchants to offer up to 10% cash back on Petal 2 purchases. Some partners are quite popular, among them Costco and Sam’s Club.
No late or returned payment fee. Petal 2 charges no fees for late or returned payments, though repeatedly missing or bouncing payments could lead to account closure.
No foreign transaction fees. Petal 2 charges no fees for international transactions. That’s good news for users who travel outside the United States regularly.
Disadvantages
Petal 2’s downsides include its high cost to carry balances and a lack of any promotions for new cardholders.
High ongoing APR. Petal 2’s variable APR (currently 17.74% to 31.74%) is higher than most competing cards. If you plan to carry a balance from month to month, look for a low-APR credit card instead.
No sign-up bonus. Petal 2 has no sign-up bonus for new cardholders. There are plenty of entry-level credit cards that do, so that’s a notable downside.
No 0% intro APR promotion. Petal 2 also has no 0% intro APR promotion for purchases or balance transfers. Combined with the high ongoing APR, that makes Petal 2 appropriate only for people who plan to pay off their balances every month, beginning in month one.
Low baseline cash-back rate. Petal 2’s baseline cash-back rate tops out at 1.5%, and only reaches that threshold after a year of responsible use. The Citi Double Cash Card, another no-annual-fee cash-back card, has a flat 2% return on spending.
How the Petal 2 Card Stacks Up
Your powers of deduction have no doubt led you to conclude that Petal 2 is not the only card in the Petal family. And you’re correct — there’s also a Petal 1, known officially as the Petal 1 “No Annual Fee” Visa Credit Card.
Petal 1 has a fair amount in common with Petal 2, and both are appropriate for people with limited credit histories. But they’re different enough to warrant a detailed head-to-head comparison.
Petal 1
Petal 2
Ongoing Rewards
None
Up to 1.5%
Bonus Rewards
Up to 10%
Up to 10%
Credit Limit
Up to $5,000
Up to $10,000
Annual Fee
$0
$0
Secured
No
No
Requires FICO Score
No
No
Final Word
The Petal 2 Card is one of the best entry-level cash-back credit cards on the market. Notable benefits include the opportunity to earn up to 10% back on select purchases, a nontraditional framework that requires no FICO score, and the potential for high initial credit limits.
Petal 2 isn’t perfect, though. It has no sign-up bonus or 0% intro APR promotion for new cardholders, mediocre-at-best 1.5% base cash back, and a high ongoing APR. If you’re looking for an above-average return on everyday spending or a generous incentive to make big purchases during your first months as a cardholder, you can do better elsewhere — if you can qualify for a more generous card. If not, Petal 2 is your stepping stone to get it.
The Verdict
Our rating
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
Regular Cash-Back Rate: Up to 1.5%
Bonus Cash-Back Rate: 2% to 10% with participating merchants
Annual Fee: $0
Ongoing APR: 17.74% to 31.74% APR
Credit Needed: Limited credit is OK
Initial Credit Limit: Up to $10,000
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
Recently my wife and I decided that we wanted to get a laptop computer so that we could check emails, do work and otherwise surf the web while the other spouse was on our main desktop computer. We no longer wanted to deal with the “are you done on the computer yet?” exchanges. (Yes, it was usually me hogging the computer time, I admit it.)
At first we looked at a wide range of regular sized laptop computers. We looked at everything from some nice looking Dell laptops all the way to the fashionable and slick Apple Macbooks. The laptops were all extremely nice, and would do everything that we needed them to, but they all had one thing in common that wasn’t something we were excited about. The price.
Looking For A Cheaper Alternative
After talking with a friend about their new MSI Wind U120 netbook computer, and how much they loved it, we decided to look into getting a netbook. After all, they were in fact a lot cheaper than some of the laptops we were looking at buying.
Everything I had heard about netbook computers up until that point really hadn’t been that great. I had an image of these tiny little computers, too small for my big hands, that would lack the processing power to do much of anything. Getting one really didn’t sound that appealing.
After trying out our friend’s netbook, however, my opinion started to change. Not only did the little machine run a stripped down version of Windows XP, it ran it very well. It had 1 gig of memory, plenty of processor power, a 160 gig hard drive, and really wasn’t as underpowered as I had expected. It was great for checking email, writing word documents, surfing the web, and doing a whole host of other every day computing tasks.
Researching Available Netbooks
After deciding that a netbook might be right for our situation, and knowing that it would definitely fit better into our budget, we began looking at what was available. We found quite a wide range of available units. It seems that netbooks are all the rage right now!
After reading reviews, and checking out several models at local stores, we ended up narrowing it down to several models.
All the units were in the $300-350 price range, right where we wanted to be. In addition, they had almost identical specs:
10 inch screen
160 GB hard drive
1 GB memory
webcam
Intel Atom Processor
After considering the options, and trying out all three units at our local Micro Center store, we decided on the MSI Wind U100 netbook, for a variety of reasons.
First, the unit had received good reviews from many different review sites. Second, it was compact and attractive looking, and we liked the ergonomics of the netbook. It was also the lowest priced unit we found as it was on sale for just under $300 at our local store.
The Wind U100 is able to do just about any basic computing task that we throw at it, minus things that are graphics intensive like video editing or anything else that needs some serious memory and CPU. Since my wife mainly uses it to check email and facebook, that’s not an issue.
The other netbooks we looked at were nice as well, but the Wind won out because of it’s combination of good price, features and good reviews.
Conclusion
While buying a new computer is hardly ever a truly frugal undertaking, there are ways to make it a bit more reasonable. We found that since we wouldn’t be using our new portable computer for much more than checking email and facebook (or twitter!), we wouldn’t need one of the more expensive and feature laden laptop computers. Instead we were able to get something that was considerably cheaper, but still offered everything that we needed in portable computing.
While we are completely happy with our new computer, netbooks do have their drawbacks. For example, a 10 inch screen isn’t really big enough for all applications. Some webpages are too wide for the small screen, and trying to view photos in applications like Picasa isn’t as easy as on a larger screen. I have also have found that the smaller keyboard on the netbook isn’t as suited for larger hands like mine – there have been a few frustrating moments when trying to type on this netbook. Beyond those things, however, we have found that netbooks are a lot more capable and advanced than we had first realized.
If you’re looking for a cheap alternative to buying a $500-700 laptop, and you won’t be needing to do CPU and processor intensive operations, I think netbooks are a great alternative that you should check out. We’re glad we did!
What things have you bought that you were able to find a cheaper alternative for? Was the cheaper alternative inferior, or did it end up being a wise purchase? Tell us about it in the comments. (as well as if you have a netbook, and what you think of it.
I have many big goals for 2017, and I had a very eventful and exciting 2016. I made many big goals for 2016, some I reached and some I did not. I never get disappointed when I do not reach my goals, because I know I do better with big goals, rather than easy goals. I also know I have to adapt and change my goals as the year progresses, because things happen I cannot predict. Goals have been a huge part of my success and what propelled my career as an agent and investor about ten years ago. Every year I write a post about my goals for the new year, and how I did in the previous year. This helps me be accountable and more successful.
My goal articles for other years
How did I accidentally start making goals in 2006?
I made a whopping $28,000 in 2006 as an agent and flipping houses with my dad. It was not a good year for me for a number of reasons. That year I decided to do much of the work myself on a flip, which was a huge mistake. When I did that flip it was incredibly stressful and ended up costing me money because it took so long. I was too busy to sell houses or finding new houses for us to flip. I had a lot of credit card debt and I knew something had to change. I decided to write a letter to my dad who ran our team, which detailed why my pay structure was not fair. I ran a bunch of numbers showing how many houses I would have to sell to make as much money as other people on our team, and how ridiculous it was. At the time I was selling less than 15 houses a year, and my letter explained I would need to sell over 100 houses to make the money I thought I was worth.
My dad was not very impressed with my letter, but writing it put a plan in my head. I wondered if I could sell that many houses. What if I stopped depending on others to make me successful, and did it myself? I had accidentally created goals for myself, even though in the past I had always resisted setting any goals (most likely because I was afraid I would not achieve them). Shortly after writing that letter I decided to become an REO agent. I sold 50 houses two years later, and a few years after that sold 200 houses. Because of the money I made in REO, I was able to buy 16 rentals, flip many more houses, and buy out the real estate team from my dad. I also learned how important it was to set goals, be positive, relax, and plan my life. I wrote a book that goes over everything I do to be successful: How to Change Your Mindset to Achieve Huge Success: Why your attitude and daily habits have more to do with making more money and having more freedom than anything else.
What were my real estate goals for 2016?
Below are summaries of my 2016 goals.
Rental property goal: Buy 10 rental properties in 2016.
Refinance 8 of my rentals.
Find a new portfolio lender.
Find a new market to invest in.
Fix and flip goal: Flip 20 houses in 2016.
More financing options from private money and lenders.
Refine the repair process.
Find more houses to buy.
Real estate team goals: Sell 200 houses in 2016.
Get more leads from our website.
Hire at least one new awesome agent.
Use Facebook more to generate leads.
Generate more leads through house flips.
Blog goals in 2016: Increase traffic and publish a new book.
Focus on how I can help people the most.
Create a paperback book on rental properties.
Get more focused on core activities.
Personal goals: I had some personal goals not specific to 2016.
Buy an Aston Martin V8.
Buy an old plantation and fix it up.
Start a car dealership.
How did I do on my rental property goal for 2016?
I bought zero rental properties in 2016! I wanted to buy 10 rentals in 2016 to catch up on my goal to buy 100 rentals by 2023. However, buying rentals in Colorado has become impossible if I want to come close to cash flowing as I did in the past. I did look at buying rentals in another state and even went to Florida to check out a couple of markets. I liked the markets but never bought anything in the area. I have developed some new goals that involve local investing in Colorado, but not with single-family rentals. I do not feel bad for missing my goal by so much, because I did not want to force bad investments. I even sold a couple of rentals that I thought were not performing as they should. I have some new and exciting plans regarding rentals for 2017 that involve local investing again.
How did I do with my fix and flipping goals for 2016?
I sold 18 flips in 2016, which was just shy of my goal to sell 20. I am very happy with that result as it almost doubled what I did in 2015. I love coming up just short of my goals because I am pushed to work hard until the very end of the year to achieve them. I never feel bad for not reaching a goal, because I know I do better with goals than without them. The ultimate point of a goal is to do as good as you possibly can, not to achieve that goal.
I found more financing in the form of new private lenders and a new local bank.
I have a much better repair process in place and even hired a full-time handyman. Nikki True became my project manager and has done an awesome job. I hired a project manager in 2015, who did not do an awesome job and really set me back.
I found a local wholesaler to buy houses from and bought a house from the local foreclosure sale, which I had not done in years.
How did I do on my goals with the real estate team?
My real estate team did not sell 200 houses in 2016, we sold about half that. Again, I am not disappointed, because the average dollar amount of the houses we sold went up. Colorado also has an incredibly hot market causing HUD homes and REO properties to virtually disappear. When I sold 200 houses a few years ago, I sold those almost all myself. It was a lot of work, but now my team sells almost every house freeing up my time. Justin Gesso has done an awesome job managing the team. We also have the lowest inventory of houses for sale we have ever had in our market. It is hard to sell many houses when there are no houses for sale! I also made progress on my other goals with our team.
We are getting many more leads from our website for our agents. We have not been able to get much traffic from Google searches, but we have done great with Facebook advertising.
We hired a new agent, who did not do very well. We hired another agent who has been doing amazing. We also have another new agent joining our team this month, who I think will do very well.
My agents sold a few of my flips in 2016 as well, which made them money and made me more money. We have been doing a great job of generating leads with the flips before and after they are listed for sale.
Did I reach any of my goals with my blog?
I did not reach my traffic goal with my blog, but I was not spending as much time on the blog this last year as I planned too. The flipping business required a lot of my time, but I did still reach some goals. I was able to publish: Build a Rental Property Empire: The no-nonsense book on finding deals, financing the right way, and managing wisely. The book did incredibly well, was an Amazon best-seller, one of the top ten Amazon real estate books most of the year, was published in paperback, and as an audiobook. I also published three other books in paperback and wrote another book on the attitude and mindset that I mentioned earlier. I have been less scattered with the blog.
How did I do on my personal goals?
I did not reach any of my personal goals that I posted last year. I did not buy any new cars, a plantation, or start a car dealership. However I reached some personal goals that are too personal to post online, and I have some big plans for the next year!
What are my real estate goals for 2017?
I had some really big ideas in 2016 that I think will make me much happier and more successful in the coming years. I have done well with the flips, but I think they can do even better. I have done poorly with the rentals, but I know I can change that. My team can make some big improvements as well with the blog.
Rental property goals for 2017
I do not have any specific goals for the number of properties I want to buy in 2017. I have changed my strategy, and want to buy a large commercial/industrial building in my area. I may still invest out-of-state in the future, but for now, I am focusing on a new strategy. I want to buy a 50,000 square foot or larger building that I can split into 5 units or more. I can rent out those units, have space for my own cars and building supplies, and add value through improvements and increased rents. I have looked at many buildings already, and I feel this is the best option for rentals at the moment.
Fix and flip goals for 2017
I want to sell 30 flips in 2017, which would be 12 more than I flipped in 2016. This may seem like a huge jump, but I have 16 flips in my inventory right now. I should have all of those properties sold by July, which means I won’t have that far to go the second half of the year. I have the money lined up, I have been able to find that many properties, and I have my repair process in place to flip 30 houses or more a year.
Real estate team goals for 2017
I keep making a goal to sell 200 houses with my team and coming up way short. I still think we can sell that many houses, and we have the team in place to do it. We are also adding at least one more agent at the beginning of the year. My goal again is to sell 200 houses in 2017 and one of these years I will hit it! I have some other really big goals and ideas for my team, which I cannot share publicly yet.
Blog goals for 2017
For the blog I want my traffic to increase, but I am not focused on that this year. There are so many things out of my control with Google, and that is where most of my traffic comes from. I really like writing books, even though it takes a lot of work and time. When I write a book, it is very similar to a rental property the way it produces passive income. While I did not buy any rentals in 2016, I increased my passive income greatly with my books. I am writing another book on the basics of buying and selling houses, which hopefully will be out in the next couple of months. I am still working on another book with a partner, which will be out this year. I want to hire some more people to help with the blog so it is not taking up quite as much of my time. I will continue to write, but I want someone else to handle some of the other aspects.
Personal goals for 2017
I still want to buy an Aston Martin V8, but they have shot up in price like my Diablo. I also want to buy a Countach, a Mercedes SLS, a Ford GT, and many other cars! I cannot buy everything or anything at the moment, because I am out of garage space. I also have some big ideas regarding my personal goals, and the big building I want to buy. I cannot disclose them all right now, but hopefully, I can shed some more light on them later in the year. The good news is that values on some cars are starting to decrease a little, but I do not want to make a goal to buy one in 2017, because of so many other things going on.
Conclusion
2016 was an exciting and fun year, even if not exactly as I planned. I hope to continue much of the projects I started in 2016, and start some brand new ventures. I know I was not as detailed about my goals for 2017, but I can talk more about them as the year progresses. If things go as planned, it will be an awesome 2017!
Remember to set big goals for yourself, and not to be afraid of missing them. Goals are there to motivate us and keep our minds focused on what is really important.
If you have a savings account you’re no longer using, it’s important to close the account to avoid fees and other possible risks that could cost you money. Closing the account properly can prevent hassles and ensure that your finances continue to flow smoothly.
Here’s what you need to know about how to close a savings account.
How to Close a Savings Account in Six Steps
Closing a savings account is generally fairly simple, but the more organized you are, the easier it will be. Here’s what you need to do.
Step 1: Decide Where You Want to Keep Your Money
Before you end one banking relationship, it’s good to have another place lined up to stash your money. This may mean a new account with a new bank, or a different type of account at your existing financial institution.
Your monetary goals can help guide you in this decision. For example, different types of accounts earn different interest rates and charge different fees for various transactions. You may be able to increase your returns and reduce the cost of banking if you take time to evaluate the accounts and what they’re offering. For instance, a high-yield savings account with a higher annual percentage yield (APY) could pay considerably more than a standard savings account.
If you have multiple financial goals and needs, you may want multiple bank accounts for different purposes. For example, you might set up one account to save for your annual vacation or some other splurge, and dedicate another account to put away money for an emergency.
Step 2: Update Any Automated Transactions
Though automatic bill payments are more commonly made from checking accounts, you may have some automated savings transactions, such as payroll deposits, that flow through your savings account each month. Be sure to switch them over to your new account.
If you have any pre-authorized debits, you’ll want to update those as well. A failed automated payment or negative account balance could trigger penalties.
The best way to ensure you don’t forget to make any updates is to review several months’ worth of bank statements. (Because some deposits, such as income tax refunds, may occur on an annual basis, you may even want to review a full year of account records.)
Since it can take some time for automatic payment processing information to update, wait until the new deposits are successfully set up before you close your old account.
Step 3: Move Your Money
Once you have your new savings account set up, you’ll need to move your bank balance. The amount of money in your old account will play a role in determining the easiest and most secure way of doing so, as will the features of your old savings account.
If you set up a new online bank account, you may be able to do an online transfer from your old account to the new one, which is typically quick and easy.
Recommended: How Much Money Do You Need to Open a Bank Account?
Step 4: Monitor Your Old Account
After your funds clear into your new savings account, you can begin using it. However, you may want to keep your old savings account open for a couple of months as you transition to the new account, as long as it’s not costly to do so. This allows you to catch any automatic transactions you forgot to change over.
Step 5: Download Your Transaction Records
After you close your account, you’ll typically lose access to your transaction history. If you require any records of your banking activities under the old account, or interest earned, download your documentation before you officially deactivate your account.
Step 6: Close Your Old Account
Once you’re set up and using your new savings account, you can close the old one.
The exact process will depend on your bank — some may allow you to close savings accounts online or via a phone agent; others may not. If you still have money left in your account, you’ll receive that sum minus any outstanding bank fees owed.
Because closed bank accounts can sometimes be reactivated in error and incur fees, it’s smart to get written confirmation of the account closure for your records. You should also review your final bank account statement for any errors.
Recommended: How to Switch Banks in 3 Easy Steps
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Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
Common Reasons for Closing a Savings Account
Here are some common reasons for closing a savings account.
• You’re moving, and your existing bank doesn’t have branches and ATMs near your new location.
• Your bank’s hours don’t suit your lifestyle.
• The bank has policies that don’t work for you, such as minimum balance and service fees.
• You have multiple savings accounts and want to consolidate.
• Another bank offers higher interest rates on savings accounts.
• You want to change from a brick-and-mortar bank to an online bank.
• You aren’t happy with your bank’s customer service or some other aspect of banking.
Why It’s Important to Close a Savings Account Properly
Once you’ve decided to switch financial services or open a new savings account, it’s a good idea to go through all of the steps involved in closing your old savings account properly.
While there are times when it may make sense to have multiple bank accounts, if you’re not using your old savings account, you should make sure to close it. This is important because then you’ll know exactly where your money is and which financial products you have open in your name.
Keeping only the savings accounts you’re actively using or plan to use can help you to simplify your finances, keep better track of your assets, and help you in your quest to achieve financial security.
Failing to close an old savings account could also potentially cost you money because of the following risks.
Dormancy fees and other penalties:
Some banks charge account holders a “dormancy fee” after a period of time without any deposits or withdrawals. These fees can accumulate month over month.
Some banks waive fees for account holders whose balance stays above a minimum threshold — but reinstate the fees if the funds in the account go below that amount. If you do have a balance in your unused savings account, these penalties can deplete it.
Fraud:
If you’re not closely monitoring your old bank account, it can be more difficult to spot suspicious activity. If an unauthorized user accesses the account, they could use it to acquire new banking products, such as a credit card, in your name.
Lost deposits:
If you’ve signed up for direct deposit you don’t receive regularly — your yearly tax refund, for instance — you may forget you’ve done so. And if they one day make a deposit to a savings account you’re no longer using, you may not notice you received that payment.
While there are drawbacks to keeping an unused account open, you may also be wondering: Is it bad to close a savings account? The good news is, closing your account usually comes at no cost. Not only do most banks not charge a fee to close a basic savings account, but doing so will not affect your credit score.
If, however, your account has a negative balance, you will need to repay that at the time of closing the account.
Recommended: What Happens to a Direct Deposit If It Goes to a Closed Account?
Finding an Account That Meets Your Needs
Even if you’ve been with the same bank forever, it’s worth taking a pulse check from time to time to ensure that your savings account meets your financial needs and is helping you get closer to achieving your goals.
Whether one financial goal or several are in play, SoFi Checking and Savings® lets you earn a competitive APY with no minimum balances or account fees. That means your money can go farther.
Better banking is here with up to 4.20% APY on SoFi Checking and Savings.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) interest on Savings account balances (including Vaults) and up to 1.20% APY on Checking account balances. There is no minimum direct deposit amount required to qualify for these rates. Members without direct deposit will earn 1.20% APY on all account balances in Checking and Savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 4/25/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet. SOBK0423056
As you increase your interest in building wealth and investing, you might be looking to take your knowledge to the next level. And as you consistently work on your investing strategy and expand your interests, there will be more to understand and manage.
While I’ve never been into active day trading stocks, buying and holding onto individual stocks should conservatively be in your portfolio. Meaning, you should have some exposure to great individual stocks, but only be a fraction of your overall portfolio to minimize risk.
What percent of individual stocks you have in your portfolio is a personal choice based on your goals and current finances. However, I like to look at it as being between 1-5% max of my portfolio.
However, most people do not have the time or knowledge to research every potential investment or find great individual stocks that are out there. But one option you have is to sign-up for The Motley Fool’s Stock Advisor program.
In This Article
What is The Motley Fool?
The Motley Fool was founded in the early 90s and has continued to be a leader in the financial space. Currently, the company is led by the founders (and brothers), David Gardner and Tom Gardner.
The company has its headquarters in Virginia, but they have offices around the world and employ hundreds of people. Their website covers the latest stock market news, numerous blog posts, and guides around investing, detailed guides, podcasts, and much more.
I think their about page sums up their approach to investing, business, and work culture nicely.
Here is a quick snippet:
“We believe in treating every dollar as an investment in the future you want to create. We believe that investing in great businesses, for the long term, is the most effective path to wealth. We believe in the power of a community to learn and grow together. We believe in keeping score and being transparent in our investment performance. We strive to fulfill our purpose by truly serving every Fool, from our employees to our members to our community.”
What is the Stock Advisor Program?
While The Motley Fool offers a plethora of free content, guides, and news — one of the staples of the company is its Stock Advisor Program.
The Stock Advisor program is a membership service that offers stock picks and various recommendations to their subscribers to help them invest wisely. And the goal of the program is to make it easy for beginner investors to get started picking the right stocks and improving their results.
What the program includes is Tom and David Gardners insights, research reports, and all the information as to why they are choosing certain stocks.
While they are looking to help you beat the traditional returns, these are not “get rich quick” options. Instead, these are stocks you should invest for the long-term that have great fundamentals.
What stands out about their recommendations, is these are not “pump and dumps” or junky penny stocks. Instead, they are legit companies that show various indicators of strong potential results over time.
And currently, the Stock Advisor program has over 600,000 active members using their services and accessing their stock market picks. So let’s explore more about the Stock Advisor program in this Motley Fool Review below.
How The Motley Fool Picks Their Stocks
While I won’t get into every little detail, I think it’s essential to cover the basics of their stock-picking approach and what investors get to see.
What’s cool about The Motley Fool’s approach to stock pick investing is its blend of strategy and information. They aren’t just throwing random stocks out there, getting paid to push a stock, or choosing a hot industry.
Their entire philosophy revolves around picking solid businesses based on current results, future potential, current management, market factors, trends, and other business signals.
This interview of co-founder David Gardner is from 2014 but goes into their process for stock picking and a bit about their Stock Advisor service.
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Here are just some past recommendations they had made to their members, before the stocks took off: Hasbro, Bookings, Disney, Amazon, Costco, eBay, United Health, and Netflix. Many of which, their first recommendations, came in the early 2000s before any big price gains.
Quite the track record and it gives you an idea of the kind of companies and stocks they look at for their members.
What members get in the Stock Advisor Program
As a member of their Stock Advisor Program, you can expect the following:
Two new stock picks each month – That is the team’s latest stock recommendations based on their analysis that is delivered monthly
The best buys for right now – The Motley Fool will provide ten timely recommended buys from over 300 various stocks.
Starter Stocks – These are identified stocks that should be considered as the foundation of your portfolio.
Their newsletter – The Stock Advisor newsletter comes with fundamental analysis, the positives and the potential negatives of the picks, and more. It helps you understand the reason for their choices, and figure out which stocks are best for you.
Additional community and investing resources. While The Motley Fool has numerous free content, guides, and podcasts — they offer members exclusive materials that the general public readers will not have access to.
Another important feature for members, is they get access to a record of all the recommendations The Motley Fool has ever made. That means access to all their winners and losers in their investment picks.
I like this transparency because you can quickly access all the information, why it was recommended, and the results since the recommendation.
Personally, it’s great to see that they do not hide any picks that maybe did not perform as well. No financial company, investor, or advisor will have 100% accuracy.
The stock market and companies can do many unexpected things, so there is no way anyone should not have any losers or “low performers.” Instead, you want to see that the winning recommendations are more consistent with strong returns.
Motley Fool Review: Pros and Cons
Now that you understand The Motley Fool’s service for investors, what you get, and how it works — what are the pros and cons of being a Stock Advisor member?
Pros of The Motley Fool
Founders and analysts have decades of stock marketing and investing experience.
Tons of in-depth content, news, resources, tools, and services.
Proven track record of results for their members in the Stock Advisor.
It takes the burden of detailed research and analysis. Making it easier for you to make decisions about stocks
Stock Advisor subscription costs $99 for a one-year membership and protection by their 30-day membership-fee back guarantee. You can cancel within 30 days and get 100% of your money back.
Cons of The Motley Fool
Purely investing in individual stocks is still risky, as there is no guarantee a stock will win long-term or the company will have enormous growth over the years.
These are recommendations, so you still need to do your due diligence. While the recommendations come with detailed information, risks and rewards, and more — you still should read and understand the stocks before just investing because they said they were good picks.
You must be prepared before. That is not to get rich quick, and you can still lose money. Understand your goals, what you can risk, and what you are willing to hold during rough times if The Motley Fool is recommending that.
Is the Motley Fool Stock Advisor Worth It?
The Stock Advisor service from The Motley Fool is worth it if you are very interested in individual stock investing and looking to have more of the research done for you in advance. It’s also a good option if you plan on managing your portfolio and have a hands-on approach to investing.
Is the Stock Advisor Program Good for New Investors?
The Motley Fool Stock Advisor program can be a great and affordable choice for new investors that have long term goals and want to mix in individual stocks to their portfolios. Even though the Stock Advisor program has a strong track record, it’s important to understand the risks and do your research on stocks they recommend.
What Type of Investor is Motley Fool Best For?
Motley Fool’s Stock Advisor service is best for new investors and experienced investors looking to have an advantage over others and boost their portfolio returns. The recommendations are also best suited for long-term investors who want to mix in individual stocks that have the potential for higher traditional returns.
If any or a few of these points speak to you personally, then the program can be a great option if you:
Are long-term investor (buy and hold for 2-5+ years)
Like individual stocks and prefer them over mutual funds
Are you looking to add new stocks to your portfolio monthly or annually beyond index fund investing, bonds, etc.
Is The Motley Fool Trustworthy?
The Motley Fool is trustworthy and legit. Compared to other similar products or newsletters on the market, the company is not promising what they can’t deliver. Nor are they doing anything that would be considered fraud.
As someone who works in marketing, I will say they may come off a bit scammy with their aggressive sales tactics; however, their track record and quality content show they are legitimate.
There are also many scams and newsletters of people trying to lure readers into stocks with the promises of massive returns. If you see those, runaway! Most are paid to select these stocks to send them out to readers, and most are junk or hold no real value.
Fortunately, The Motley Fool does their homework, has a proven track record, and helps you build a nice portfolio of some individual stocks to help you make money while you sleep.
They may have aggressive marketing or sales tactics, which I tend not to like. But, since they are transparent and have proven results, I don’t judge them as much on those tactics since they can back it up (unlike most stock picking newsletters).
This article originally appeared on Your Money Geek and has been republished with permission.
Chime is a popular fintech company that offers a variety of banking services without the monthly account fees typically associated with traditional banks. One of the many perks of using Chime is the ability to deposit cash and load your Chime card without fees if you know where to look.
This article will cover the various ways you can load your Chime card for free, helping you maximize your financial success.
Chime Card Basics
Before we dive into the different methods of loading your Chime card for free, let’s briefly discuss the basics of Chime banking services. Chime offers the Chime Checking account that comes with a Chime Visa® Debit Card. They also provide a Savings Account and a Chime Credit Builder Secured Visa® Credit Card, giving users access to a full suite of financial tools.
Chime is not a bank itself, but rather a financial technology company. Banking services are provided by The Bancorp Bank or Stride Bank, N.A., both of which are FDIC-insured.
Read our full Chime review here.
Direct Deposit as a Free Loading Option
One of the easiest and most convenient ways to load your Chime card is through direct deposit. Direct deposit allows your employer, the government, or other organizations to deposit money directly into your Chime account, saving you the trouble of manually transferring funds or depositing checks.
To set up direct deposit, simply provide your employer with your Chime account number and routing number. You can find this information in the Chime mobile app under “Settings.” Direct deposit is a free service and typically allows you to access your funds faster than traditional check deposits.
Bank Transfers for Free Chime Card Loading
If you have an external bank account, you can link it to your Chime account and transfer money for free. To do this, log in to your Chime mobile app and navigate to the “Move Money” section. From there, you can add your external bank account and initiate a transfer.
Keep in mind that bank account transfers may take up to five business days to process. There may also be limits on how much you can transfer, so be sure to review Chime’s transfer policies before initiating a transfer.
Mobile Check Deposit
Chime customers can deposit checks using the mobile banking app, which is another free method for loading your Chime card. To use mobile check deposit, you’ll need to endorse the check, take a photo of the front and back, and submit it through the app.
Remember to follow Chime’s guidelines for mobile check deposit, such as using a well-lit area and ensuring the check is in good condition. Processing times may vary, but generally, mobile check deposits become available within five business days.
Cash Deposit Options
While Chime does not accept cash deposits at their own ATMs, they have partnered with Green Dot to provide cash deposit services at various retail locations. Some of these retailers may allow you to load your Chime card for free, while others may charge cash deposit fees. Here’s a list of retail locations where you can load your Chime card without fees:
7-Eleven
ACE Cash Express
Casey’s General Store
Circle K Stores
Cumberland Farms Corp
CVS
Dollar General
Duane Reade
Family Dollar
Food Lion
Fred Meyer
Giant Eagle
GPM Investments
HEB
Holiday Station Stores
Hy-Vee
Krause Gentle (Kum & Go)
Kwik Trip Inc
Meijer
Pilot Travel Centers
Publix
QuikTrip
Rite Aid
Royal Farms
Sheetz Incorp
Speedway
TA Operating LLC (TravelCenters of America)
Walgreens
Walmart
Winn-Dixie
Keep in mind that the availability of free cash deposits may vary by location. Always confirm with the specific retailer before initiating a transaction. To find the closest cash deposit location, use the Chime mobile app’s ATM & Cash Deposit Locator feature.
Chime’s Ingo Money Partnership
Chime has also partnered with Ingo Money, a third-party check-cashing service, to provide additional check deposit options for Chime customers. Ingo Money allows you to deposit checks through their mobile app and load the funds directly onto your Chime card.
However, Ingo Money may charge fees for their services, and limits may apply. Make sure to review Ingo Money’s terms and conditions before using their app to load your Chime card.
Other Ways to Load Your Chime Card
In addition to the methods mentioned earlier, there are a few other ways to load your Chime card. While these options may not be free, they can provide flexibility and convenience for Chime customers.
PayPal Transfers
If you have a PayPal account, you can transfer money to your Chime account. To do this, link your Chime account as a bank account in your PayPal settings. Keep in mind that transferring funds from PayPal to Chime may take several business days and could be subject to fees, depending on the transfer type.
Venmo Transfers
Similar to PayPal, you can also transfer money from your Venmo account to your Chime account. Add your Chime account as a bank account in your Venmo settings, and initiate a transfer. Be aware that Venmo may charge fees for certain types of transfers, and processing times may vary.
Popmoney Transfers
Popmoney is a third-party money transfer service that allows you to send money to friends and family or even yourself. You can use Popmoney to transfer funds to your Chime account. However, this service may charge fees for transfers, so be sure to review the fee structure first.
Western Union & MoneyGram Transfers
Western Union and MoneyGram are well-known money transfer services that allow you to send money to your Chime account. Visit a Western Union or MoneyGram location, provide your Chime account and routing numbers, and initiate the transfer. Keep in mind that these services typically charge fees for money transfers, and processing times may vary.
Tips for Avoiding Fees While Loading Your Chime Card
To maximize the benefits of your Chime account and minimize fees, consider the following tips:
Plan ahead and consolidate your deposits: By combining multiple deposits into one larger transaction, you can reduce the number of times you need to visit cash deposit partner locations and minimize potential fees.
Make use of free loading options: Direct deposit, bank transfers, and mobile check deposit are all free ways to load your Chime card. Take advantage of these methods whenever possible.
Monitor Chime’s fee schedule: Stay informed about any fees associated with Chime’s services and partner locations, and adjust your deposit habits accordingly.
Bottom Line
Chime offers a variety of free and convenient ways to load your Chime card, from direct deposits and bank transfers to mobile check deposits and select retail locations. By making the most of these options, you can enjoy the full benefits of Chime’s banking services without incurring unnecessary fees.
Keep in mind that some methods, like Ingo Money, may involve fees or restrictions, so always review the terms and conditions before proceeding. With a little planning and awareness, you can maximize your financial success and make the most of your Chime account.
Frequently Asked Questions
How long does it take for a deposit to become available on my Chime card?
Processing times vary depending on the deposit method. Direct deposits typically become available within one to two business days, while bank account transfers and mobile check deposits may take up to five business days.
Are there limits on how much I can deposit or load onto my Chime card?
Yes, Chime imposes limits on deposits and transfers to protect against fraud and comply with federal regulations. These limits can vary depending on the deposit method and your account history. Review Chime’s policies for specific limits.
Can I load my Chime card using a credit card or another debit card?
No, Chime does not currently support loading your Chime card using a credit card or another debit card. However, you can link an external bank account and transfer funds, or use one of the other methods outlined in this article.
A lot of times if you’ve been doing something for a while, you tend to take things for granted.
I got a call from a prospective client, someone I’ve known for several years. They called to ask me a question that I just figured everybody knew.
It was such a basic question when it comes to my profession that, like I said, I just took for granted and thought that everybody knew how to do it. The question was,
“How do I buy stock or how do I invest into stocks?“
I came to the conclusion that if they didn’t know the answer, most likely a significant portion of the readers don’t as well, so I’m going to take a minute and address some of the different ways you can get started buying stocks.
Table of Contents
5 tips to get you started buying stock online
To give you some background on the person that called, they were in a 401K so they were investing for their retirement, but they never actually had gone out to invest into individual stocks.
There was a certain stock that they were hot on and thought that they could make some money on so they wanted to go buy it. I gave her a few different places that she could go to do her own research and buy the stock.
If you are itching to invest your money, make sure to check out our great reviews on different ways to invest such as our Motif Investing Review.
Pour Your Foundation
First, if you’re looking to buy stocks, make sure that you’ve got a foundation set. I always hate it when people call me and they want to start investing in individual stocks and yet they don’t have anything saved in retirement.
They don’t have a 401K.
They don’t have an IRA.
They don’t have anything.
They don’t have an emergency fund, yet they want to start investing and playing in the stock market.
That’s one of my biggest pet peeves. It’s like a house, right? With a house, you have to build a foundation first. You don’t start putting on the roof or start doing the inner accessories like the big screen TV and the couches before you have the framework or foundation down.
Make sure you have those in place first before you go out and start buying stocks. That’s my entry disclaimer, but I just wanted to get that out there first.
Buying Stocks Online
Now if you’re ready to start buying stocks and you feel comfortable doing this, you have a couple of different areas online you can go to. The first place you can go is any discount broker. Think Ally, and I’m sure there are countless others, but these places are good. For starters, they’re very, very inexpensive.
Sometimes you can open accounts and trade for free. Others, to execute the trade to actually buy the stock, you may pay as little as $4.95 on up to 15 bucks per trade. That’s pretty reasonable, especially if you’re only going to be doing a few trades here and there. Some of them, and I’m not familiar with all the rules, but they may charge you an annual fee if you don’t do a lot of trading.
Definitely read all the fine print and rules before you engage in buying stock from an online discount broker. If it’s something where you’re going to buy a few stocks here or there, that could be a viable option.
Buying Individual Stocks Through Computershare.com
Another option if you’re comfortable making the purchases online is to actually buy it through the company itself. One website that has a lot of arrangements with a lot of different companies is Computershare.
When I have clients that have a share of stock that they either inherited or it was given to them, quite often computershare.com is the custodian. They will have to call them to liquidate it or to find out how many shares they own. Computershare just seems to be a common hub for a lot of these different companies.
How I’ve recently had some more relationship with Computershare was I wanted to buy stock for my kids, not so much as an investment, but more of a keepsake. I wanted to buy a share, put my son’s name on it as in the form of a custodial account. They had the actual certificate, something we could frame and put it on the wall and have a keepsake. I was having difficulty trying to find a certain stock that I wanted to buy. Sure enough I went through Computershare and they had an arrangement with that company so I’ll be doing that soon.
Computershare has a relationship with a lot of those companies. You can go to computershare.com and follow their links. I think you go to investor’s center and from there you can see some of the companies that they have an arrangement for. I think it’s over 500 companies. I’d have to check the website just to double check, but that’s another venue that you can go. I think it’s maybe a $15 transaction charge, so once again very minimal cost to do it. It’s another good, do-it-yourself, online arena where you can go to buy individual stocks.
Buying Stocks Direct From the Issuing Company
You can sometimes buy stock directly from the issuing company, without using a service like Computershare. This is mainly available with large, well-established companies. You can find out if the company offers the service by contacting their investor services department, which you can usually find on the company website.
One of big advantages to this is that the companies typically don’t charge any transaction fees, so you can buy the stocks at cost. And some companies will even allow you to sell your shares back to the company.
DRIPs. Some companies even offer programs known as Dividend ReInvestment Plans, commonly known as DRIPs. When you participate in this plan, your dividends are automatically reinvested in buying additional shares of the company stock. This is a way to build a long term position in a company that you are committed to holding an investment position in for a very long time.
Mutual Funds and Exchange Traded Funds (ETFs)
If you want to invest in the stock market, but you aren’t comfortable doing it with individual stocks, you can invest in a large number of stocks with a single investment in a mutual fund or an ETF.
There are several advantages to investing in funds:
You don’t have to select individual stocks, the fund manager takes care of that for you
Each fund represents a diversified portfolio of stocks; this is important because holding a larger number of stocks is less risky than owning just one or two
Transaction costs are much lower when you buy through a fund than if you try to assemble a custom-made stock portfolio
Your only decision with funds is deciding when to buy, and when to sell; since you can trade funds easily, you can move in and out of your positions quickly
Funds come in a variety of types, in which you can invest either in the general market, or in various sectors, such as energy and healthcare
Yet another advantage to investing in funds is that you can buy and sell them just as easily as you can trade individual stocks. You can buy them through a discount brokerage firm, as listed above. But you can also buy them through mutual fund families, such as Vanguard and Fidelity. Those are two of the largest mutual fund companies, but there are dozens of others to choose from.
Fund Families. Buying direct through a fund company – sometimes referred to as a “fund family” – is often less expensive than buying through a discount brokerage firm. That’s because within the fund family there are typically no transaction costs.
Index Funds vs. Actively Managed Funds. There are two general types of funds to be aware of, index funds and actively managed funds. Index funds invest in established investment indexes, such as the S&P 500. Index funds are more typical for ETFs. Since they invest in an index, the individual securities within the portfolio are traded only when the composition of the index changes. Since that is a relatively rare event, index funds have very little stock turnover, which means that their investment expenses within the fund are very low.
Actively managed funds are typically mutual funds. They tend trade a lot more than index funds, and have higher investment expenses. For this reason, index funds often outperform actively managed funds, and are probably the better choice for most investors.
Load Fees. You should also be aware that funds sometimes charge what are known as “load fees”. These are one time fees that are built into the fund, and they generally range between 1% and 3% of the value of the fund you’re purchasing. They can be charged upfront (known as front end loads) or upon sale (backend loads), and sometimes both on some funds.
Loads are high, which is why you should favor no-load funds. Not only are they less expensive to buy, but you’ll feel more freedom to close out your position whenever you choose, if you are not concerned by how much money you paid upfront in order to buy the fund in the first place.
Robo Advisors
If you want to invest in the stock market, but you aren’t comfortable doing it with individual stocks, or if you are unsure as to which mutual funds or ETFs to buy, you have one more option. A group of online, automated investment platforms have developed in recent years, commonly known as robo advisors.
These are investment platforms that will manage your investment portfolio for you, and do so for a lot less than the 1% to 2% annual fees that human investment advisors charge. You set your allocation with the robo advisor – which they take care of for you – then your money is automatically managed and invested by the platform. You’re only responsibility is to fund your account.
There are now dozens of robo advisors available, but one of the most popular – and well-regarded – is full review of Betterment for more details.
The Mechanics of Buying Stocks With a Broker
Okay, if you still want to buy stocks and you’re not completely comfortable going online to do it, I don’t blame you. That can be intimidating for a lot of people. You have to open up an account online and send some money to some faceless operation.
The other option you have is you could go to a local investment house, local stockbroker and buy stock through them. Just so you know, by going that direction you’re probably going to pay more, considerably more, but at least you have a face of someone you can talk to. They can share their expertise of what you think is going to make you a lot of money, if it really is. Also, you have somebody that hopefully is going to educate you in having that foundation set.
All these different brokerage firms differ on their prices, but I have to think at minimum you’re going to be spending about $40 per transaction. So if you buy a certain number of shares it’s 40 bucks. If you sell again it’s another $40. That’s for a smaller amount transaction. The higher transaction you go, the more shares you buy, or the higher the share price is will then determine how much the commission is going to be.
Some of these firms as well, if you don’t trade frequently, are going to hit you with either a small account fee or an inactivity fee. Be conscious of that. It’s definitely not the cheapest direction to go. Typically, when I’m working with clients and if they want to do some stock trades or they have a younger relative or their kid that wants to buy shares of stock and that’s all they want to do, I usually will guide them to one of these online platforms if they are comfortable just to help save them a few bucks.
Those are some of the different options you have. If you want to buy stock, you can go online to one of the online discount brokers or go to computershare.com. If you’re not comfortable head to your local brokerage. Then, when you shop around I would maybe interview one or two different brokers just to see what would be the potential cost to do so. I would just say,
“Hey, how much would it cost to buy 100 shares of…..”
and just give them some stock, maybe the stock you’re interested in, just to see what it is and how much the fee is going to be. You want to make sure you know what you’re getting yourself into. Make sure you read the fine print before you proceed and make that initial investment.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.