You’ve heard how awesome Roth IRAs are and how starting one now can mean big bucks when you’re older. You’ve even done some research so you have a vague idea of how a Roth IRA works. Now what? How do you actually open a Roth IRA for yourself?
The good news is that it’s surprisingly easy to set up a retirement account and begin investing in your future. Here’s what to do…
How to open a Roth IRA
Decide where to open your Roth IRA account. Financial services providers such as Vanguard or Fidelity will have IRA products.
Gather your information.
Transfer money into your account.
Set up an automatic investment plan.
1. Where to Open a Roth IRA
One of the reasons people fret about opening a Roth IRA is because there are so many financial institutions offering IRA products. It’s important to search for a company that suits your needs, but how do you evaluate each company’s strengths and weaknesses?
Consider reputable Advice
If you already have an investment advisor, ask her for recommendations, but look at other options too. Some banks and credit unions also offer individual retirement accounts. My credit union, for example, has Roth accounts but they’re limited to certificates of deposit at 1.50%.
2. Gather Your Information
Gather all your information in one location when you are ready to begin. Most firms provide online applications, but some still require that you download forms and mail or fax them to the company. (If you’re opening an IRA through a brick-and-mortar bank or broker, take this information with you.)
From this point, it’s just a matter of answering simple questions. The entire process should take about an hour of uninterrupted time. (Actually, you’ll probably only need 15 minutes, but allocate more time just to be safe.) Before you begin the application, make sure you have all the documents listed below:
Here’s What You Need to Open an Account
Your social security number.
Your driver’s license or other photo I.D. like a passport.
Your bank account information — your bank’s routing number and your bank account number.
Your employment information — your employer’s name and address.
Some money. (Depending on where you choose to open your IRA, you may need $25 or as much as $3,000.)
Note: For each beneficiary you choose, you will need to supply their name, social security number, and date of birth as well.
3. Transfer Money Into Your Account
Once you’ve completed the application process, you will be asked to transfer money to your account. This money will probably earn interest in a money market fund until you choose an investment. [In Part 4 of this series, we’ll discuss good investment options for Roth IRAs.]
4. Set Up an Automatic Investment Plan.
I’m a big fan of automatic investment plans. Most of the companies mentioned later in this article offer some sort of program that will pull money from your bank account every month to invest in the stocks or mutual funds you designate. By setting aside $50 or $100 or $500 in this way, saving becomes a habit. You don’t notice the money is missing. It’s a regular expense that just becomes incorporated into your budget.
A final note: Opening a new account usually is quick and simple. However, be aware that it may take a few weeks before you can start trading. That’s because they will wait for checks you send to properly clear the bank.
Ongoing IRA account transactions at banks, brokerages or mutual fund families happen quickly, but they all take some time to activate a new account. In other words, don’t become impatient if you can’t buy things right away.
Related >> IRA Contribution Limits, Deadlines and Deductions
Before You Invest
There are two things you should take care of before opening a Roth IRA:
Tuck away at least $1,000 in a savings account for emergencies.
Pay off your credit card debt. At the very least, make a significant dent in your debt and have a plan for its elimination. (I chronicled my choice between debt and savings here.)
Related >> Which online high-yield savings account & money market is best?
Related >> Real-life choices: Retirement savings vs. debt reduction
An Excellent Way to Begin Your Retirement Savings
When you’ve finished paying off your debt, take the amount you were using for debt reduction each month and, instead of spending it, stick it into a retirement account.
You’ve already developed the habit of using the money to improve your financial life. This is just another way to do it!
Consider Taking a More Active Role
If you’re willing to make some decisions on your own, you can open a self-directed IRA through a mutual fund company or through an online discount brokerage.
In general, you have two choices:
A mutual fund family, like Vanguard or Fidelity, which will open an IRA account for free and sell you their funds for free. The benefit is that you pay no commissions, but the downside is you can only buy the funds they sell.
A brokerage, which allows you to pick any index fund, managed mutual fund, or individual stocks and/or bonds but may charge a commission on each trade. The major online brokerages (E-Trade, TD Ameritrade, etc.) usually have no fees to open an IRA but will charge around $10 or less per transaction for most transactions.
How to Evaluate a Roth IRA provider
Is there a minimum initial investment?
Does the company offer automatic contributions?
Are there minimum contributions?
What types of fees are assessed to the account?
What investment options are available — stocks? mutual funds? real estate?
Is it possible to download statements automatically to your money management program?
How reputable is the provider?
Mutual Fund Family
If you decide to go with a mutual fund family, many people recommend starting at one of the big three Vanguard, Fidelity, or T. Rowe Price because of the large variety of managed and indexed funds they offer. If mutual funds (indexed or managed) are the cornerstone of your investment strategy, it makes the most sense to go with one of the major fund families.
For those focusing on index funds, Vanguard is the most logical choice, because they specialize in index funds and offer the widest variety. They actually created index funds to begin with, and their costs tend to be the lowest. Click here to open a Roth IRA at Vanguard.
For those who prefer managed mutual funds over index funds, your best approach is to go to a review site like Morningstar or Zacks to see which of the funds that pursue what you have in mind (e.g., foreign stocks, domestic bonds, etc.) perform the best. Click here to open a Roth IRA with Fidelity.
All the major mutual fund families make it easy to open no-cost accounts. Simply go to their website and follow their instructions. But there are still other places that you can open a Roth IRA.
Click here to open an IRA at T. Rowe Price.
Discount Brokers
Discount brokers appeal to many people because they have a low barrier to entry. They offer lower fees than traditional brokers because they don’t have research departments and they don’t offer investment advice. They act purely as middlemen for trading in the market.
The primary benefit of using a broker is that you can pick from many different mutual funds or, if you prefer, individual stocks or bonds.
How to Bridge a Gap
Discount brokers are a good option if you are short on cash. Most of them will also offer a cash account, similar to a savings account. You can use that account to accumulate the money necessary to meet the minimum initial deposit.
Online discount brokers want your IRA business and, consequently, they make it very easy to open an account. You can compare their fine print details, but for the most part, their pricing is very similar.
The major players in the discount brokerage space are E-Trade, Scottrade, and TD Ameritrade. Simply visit their home page and look for the link offering a no-cost IRA account. Some have minimum deposits of $500 or so; but if you commit to a monthly automated contribution, many will waive that requirement.
Don’t Delay Because of These Misconceptions
I always believed opening a retirement account was difficult, but that’s all there is to it really. The most difficult part is deciding where to open your account. Set aside an hour or two some Saturday morning to explore your options over a cup of coffee. With some research, you should be able to find a company and program that fits your place in life.
I also used to think, I don’t have money to invest. Last year I forced myself to find the time and the cash to open a Roth IRA, and I can say that it has been one of the best financial decisions I’ve ever made.
The GRS Introduction to Roth IRA Series
Understanding how important it is to get started saving for retirement, check out the rest of our Roth IRA series to learn about how to start your Roth IRA, which investments are best, and other general questions about these great accounts.
Part 1: The extraordinary power of compound interest Part 2: What is a Roth IRA and why should you care? Part 3: How to open a Roth IRA (and where to do it) Part 4: Which investments are best for a Roth IRA? Part 5: Questions and answers about Roth IRAs
Inside: Need help with do credit cards have routing numbers? This guide teaches you the basics of credit card money management.
Have you ever wondered if credit cards have routing numbers?
If so, you’re not alone.
In fact, this is a question that we get asked quite often here with money management.
The short answer is no, credit cards do not have routing numbers. But there’s a bit more to it than that.
Keep reading to learn more about why credit cards don’t have routing numbers and what other options are available if you need to make a direct deposit or automatic payment using your credit card.
What are Routing Numbers?
A routing number, often known as ABA or Transit number, is a unique nine-digit code that identifies your bank in the U.S. and helps to direct your transactions correctly.
Here’re a few things to take note of:
It is indispensable for online transactions, direct deposits, and financial exchanges.
Banks and financial institutions use it to identify themselves during transactions.
It usually appears at the bottom of your checks.
There may not be a routing number for all financial institutions.
Cherished for over a century, these magic digits aid in a seamless banking experience.
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.
Do Credit Cards Have Routing Numbers?
Here’s the deal, no, credit cards do not have routing numbers.
So, when you’re making a payment or doing a transaction, you won’t need any routing number.
You just enter your credit card’s account number, and you’re good to go.
Confusing it with routing numbers? Learn how to read a check.
Why Credit Cards Don’t Have Routing Numbers?
Your credit card and bank accounts are two completely different methods of paying.
While routing numbers are nine-digit codes that identify your bank. They’re used to process payments and deposits, and they appear on the bottom of your checks.
So, naturally, you might assume that credit cards have routing numbers. But they don’t—and there are a few reasons why.
1. Debit Cards Do Not Need Routing Numbers
Primarily, routing numbers are for bank transactions like wire transfers, checks, and direct deposits. When you use a debit card, you’re not performing these actions.
Hence, there is no routing number involved.
Your debit card is directly linked to your bank account, and that’s how transactions are processed.
For kids… Using a Greenlight debit card is a great way to teach responsibility.
2. Credit Cards Do Not Need Routing Numbers
Credit cards function entirely differently from your usual bank account! Here are the key points:
A credit card has a unique 16-digit account number, not a routing number.
It’s not about moving funds from your account to another when you’re using your credit card. Instead, you’re essentially borrowing bucks from your card issuer, sort of like a personal money-lender.
In short, your credit card enjoys its own exclusive payment processing lane, no routing numbers required!
Understanding Credit Card Numbers
Credit card numbers, much like routing numbers, hold critical account information that extends beyond just a unique identifier.
Each series of digits serve a purpose – revealing the card network, issuer, and your specific account number, and even acting as a key validation tool.
Understanding the structure of credit card numbers can help you not only identify your card type but also the financial institution it’s associated with.
1. Account number
An account number on your credit card is a unique 16-digit identifier. Think of it like your card’s fingerprint.
For example, if you’re holding a Mastercard, your account number likely starts with the number “5”. This number is different from your card security code or pin. It’s crucial for processing transactions and differentiates your card from others. Each time you transact, this account number comes into play.
So, knowing what it represents adds to your financial literacy!
2. Brand identifier
American Express, Discover, MasterCard, and Visa all have different systems for generating credit card numbers.
A routing number is not used in the credit card number generation process. Therefore, a credit card does not have a routing number.
Think of credit card numbers like a secret map. That first digit? It’s the Major Industry Identifier (MII), a fancy name for the network your credit card belongs to:
3 for American Express
4 for Visa
5 for Mastercard
6 for Discover.
The next handful of numbers is your Issuer Identification Number (IIN), the ‘who’s who’ of banks showing the issuer of your card. For example, a card starting with 475050 is a Visa from JPMorgan Chase.
The remaining digits are your unique account number with a check digit for validation.
3. CVV number
CVV stands for Card Verification Value.
Your credit card’s CVV number is that extra little bit of security magic for online shopping. This 3-digit (or 4, for you Amex users) number hangs out on the back of your card—except for American Express, where it lounges on the front.
It’s an anti-fraud champion, making sure the wizard behind the curtain really has the card itself, not just the number.
Remember, this little number works best when kept a secret, so keep it under wraps!
4. Cardholder name
The cardholder name on your credit card is just your own name — simple as that. It’s printed right on your card.
This is to help the retailers verify that you, the cardholder, are indeed the legit owner of the card when making a purchase.
So, it’s just another security step to keep your card safe from theft!
Credit Card Example Number
Here is a quick example of how credit card numbers are used in real life.
Imagine card number 4298 6512 9087 6543.
That ‘4’ indicates it’s a Visa. The ‘2986’ might say it’s from Bank XYZ, and the ‘5129087654’ is just you! Now, isn’t that a cool language to learn?
How Credit Card Transactions Work
When you use a credit card, you are borrowing money from the card issuer. It is not a “free” unlimited supply of funds.
If you pay your credit card in full by the payment date, you don’t owe interest. However, if you don’t pay the balance in full, you will start to accumulate interest and possibly feed.
Here are some key points of knowledge to know:
The billing cycle refers to the period, about thirty days, where all your financial transactions are tracked. This period generally lasts for an entire month.
The statement balance is the amount of money you owe at the end of your billing cycle. Once this amount is determined, you’re given a due date, which is typically 25 days after the end of your billing cycle, to repay the full amount. If you’re able to pay off your entire statement balance by this due date, you’ll avoid any interest charges on your credit card. However, if you fail to pay, you’ll have to incur an additional fee.
The outstanding balance consists of all your transactions from your grace period statements. This is the sum that you need to pay off in order to have a zero balance on your credit card.
Did you know you can use a Visa Gift Card on Amazon?
Now, You know the Account Number for Credit Card
We hope this guide has helped you understand a little more about credit cards and how to use them wisely.
Remember, a credit card is a powerful tool that can help you build your credit and improve your financial status.
Use it wisely and always pay your balance in full and on time to avoid costly fees and interest charges.
So next time you pull out your card, impress your friends with this cool trivia on credit cards!
Now, learn how many bank accounts should I have…
Know someone else that needs this, too? Then, please share!!
If you’re on the lookout for a full service online bank, you might come across CIT Bank. Founded in 2009, CIT Bank is now a division of First-Citizens Bank & Trust Company, which is a leading financial institution with more than $218 billion in assets.
The bank offers a variety of products, including savings and checking accounts, CDs, custodial accounts, and home loans. It stands out for its competitive interest rates that you may not find at traditional banks as well as no monthly maintenance fees or monthly service fees.
While there are no physical branches, live chat support on CIT’s website and mobile app as well as automated phone assistance is available 24/7. If you prefer to speak to a CIT representative directly, you can reach them during regular business hours: Monday through Friday, 9 a.m. to 9 p.m. ET, or Saturday from 10 a.m. to 6 p.m. ET.
CIT Bank doesn’t have an ATM network but it will reimburse you up to $30 per month if you incur out-of-network ATM fees. Rest assured that it’s insured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000 for an individual account or $500,000 for joint accounts, meaning your money will be safe, no matter what happens to the bank. Let’s take a closer look at CIT Bank so you can decide whether it makes sense for your unique situation.
CIT Bank Pros and Cons
Before you move forward and open an account with CIT Bank, it’s a good idea to consider the benefits and drawbacks.
Pros
Competitive rates: Since CIT Bank has less overhead costs than brick and mortar financial institutions, its yields on deposit accounts and several CIT Bank CDs are competitive. It can allow you to make the most out of your hard earned money.
No fees: Unlike other bank accounts, CIT deposit accounts do not have any monthly maintenance fees, or other common fees. You can use the money you save on fees to meet your financial goals faster.
ATM fee reimbursement: CIT Bank reimburses you up to $30 per month for out-of-network ATM fees. This means you can withdraw cash from any ATM without worrying about high costs.
Small minimum deposit requirements: You don’t need a lot of cash to open up CIT Bank accounts. Many. of the accounts only require $100 to start.
24/7 customer service: CIT’s live chat and automated phone support is available round-the-clock. If you have a question or concern, you’ll be able to receive assistance right away.
Cons
No physical branch locations: CIT is an online only bank, meaning there are no branches for an in-person banking experience. If you decide to bank with CIT, you should feel comfortable with online banking and mobile banking.
Limited product selection: Compared to other financial institutions, CIT’s product line is slim as there are no credit cards, car loans, or IRAs. Fortunately, its lineup of checking accounts, savings accounts, custodial accounts, CDs, and mortgages is still impressive.
Low rates on select CD accounts: Some CDs have lower rates than you may be able to find elsewhere. The good news is you can calculate your returns in advance and won’t have to worry about fluctuations in the market.
No checkbooks: CIT’s eChecking accounts do not include checkbooks. However, you can use CIT to pay other individuals and businesses electronically via Zelle, Apple Pay, and Samsung Pay.
CIT Bank Products
CIT Bank offers a variety of products to help you meet different financial goals. Here’s an overview of each of its current offerings.
Checking Accounts
You can open the CIT Bank eChecking account with as little as $100. It’s unique in that it offers interest on your balance. To earn as much interest as possible, you’ll need to keep at least $25,000 in your account.
As an online checking account holder, you’ll get a debit card with chip technology and 24/7 account access. Plus, you’ll be able to deposit checks and make unlimited withdrawals with the CIT Bank mobile app. In addition, you’ll have access to Zelle, Apple Pay, and Samsung Pay. Unfortunately, the eChecking account doesn’t come with paper checks.
Savings Accounts
CIT Bank offers a few CIT Bank savings accounts you might want to explore., including the CIT Bank Savings Connect, the Savings Builder account, and Platinum Savings account. The CIT Bank Platinum Savings account provides an interest rate of up to 12 times the national average.
There are no fees and interest compounds daily so that you can earn as much as possible. All you need is $100 to open this account. This account is ideal if you’d like to meet your savings goals quickly without a lot of effort.
With the CIT Savings Connect account, you can reap the benefits of a great interest rate and enjoy easy access to your funds. Several noteworthy perks of the Savings Connect include an interest rate of up to 11 times the national average, online banking and mobile banking, remote check deposit, and no monthly service fees.
The CIT Savings Builder is a two-tiered CIT savings account with an interest rate that’s twice the national average. As long as you make at least one $100 deposit per month or maintain a balance of $25,000 or more, you can earn a competitive rate on it. Since the Saving Builder account earns daily compounding interest, you’ll be able to maximize your earning potential. Just like the other CIT saving accounts, the Savings Builder doesn’t have any account opening or maintenance fees.
CIT Money Market Account
The CIT Bank money market account is the way to go if your ultimate goal is to grow your savings and stash your emergency fund. With a minimum opening deposit of $100, you can earn more than two times the national average.
In addition, there is no monthly service fee and you can deposit checks and transfer money using the CIT Bank mobile app. In addition, you’ll be able to earn twice the national average. Just like with the other accounts, you may only make six transactions per statement cycle and can deposit checks and make transfers with the CIT mobile banking app.
CDs
Certificates of Deposit (CDs) might be worth exploring if you like the idea of guaranteed returns. CIT offers several types of CDs, including:
Term CDs: Term CDs are traditional CDs that are widely seen at other banks and range from six months to 60 months. With a term CD, you can lock in an interest rate for a certain time period, regardless of what happens to the market. The longer term you choose, the more interest you’ll earn. You’ll need at least $1,000 to open a term CD.
No-Penalty CDs: Most CDs require you to lock up your money for a set period of time. If you’d like to access it before, you’ll have to pay a penalty. A no-penalty CD is exactly what it sounds like: a CD that doesn’t charge a penalty if you withdraw funds before your term is up. It requires a $1,000 minimum opening deposit and you may be able to access your money after seven days.
Jumbo CDs: If you have a lot of cash saved up, a jumbo CD might make sense. It requires $100,000 to open and doesn’t come with any account opening or monthly maintenance fees. Its terms range from two to five years and the longer you keep your money in one, the higher rate you can lock in.
RampUp CDs: RampUp CDs are for current CIT Bank customers with CDs. With a RampUp CD, you can increase your rate one time during your term if CIT Bank raises rates after you have already opened your account. You’ll need to reach out to CIT Bank directly to learn more about what type of rate you might qualify for.
Custodial Accounts
Custodial accounts are opened under the Uniform Transfers to Minors Act (UTMA). If you have a child under 18, a CIT custodial account can help you save money for their future. You’ll serve as the custodian and have complete control of the account until your child turns 18 or a later age that you designate.
You can contribute as much money as you’d like and may not have to pay federal taxes on part of the earnings. With a custodial account, your child may enjoy money for college, a vehicle, home down payment, and other expenses that can steer them toward a bright future.
Home Loans
CIT Loans does offer mortgages but you have to submit your contact information on its website to start the process and learn more about your options. You’ll need to state the value of the home you’re interested in, your desired loan amount, your zip code, and your credit score range. If you already bank with CIT, you may be eligible for two relationship discounts that lead to a lower rate.
Ten percent of your balance in a CIT bank account may give you 0.1% off your rate. If you keep 25% of your balance in a qualifying cit bank savings account, you might lock in a 0.2% discount. Since the CIT website has limited information about its mortgages online, it’s a good idea to fill out the form and request further details.
CIT Bank Fees
As we mentioned above, CIT Bank doesn’t charge any opening fees or monthly maintenance fees. Also, you can open most accounts with only $100. The bank won’t charge any domestic ATM fees and will reimburse you up to $30 per month for any fees you incur for using other ATMs. If you use an international ATM, however, CIT Bank will charge a monthly fee of 1% plus the fee imposed by the ATM provider. Other fees you should be aware of include:
Debit card replacement fee: 100
Overdraft fee: $30
Returned deposit fee: $10
Bill stop payment fee: $30
Outgoing wire transfer fee: $10
CIT Mobile App
With the CIT mobile banking app, you can bank on the go from just about anywhere. The mobile app is versatile so you can use it to log into our accounts via a password or fingerprint. You can also transfer funds between CIT accounts and an external bank account and take a photo to deposit checks.
Plus, the app allows you to check your balances and transaction history, send and receive money via Zelle, and make secure payments with Samsung Pay and Apple Pay. If you’d like, you can sign up for text banking, which will give you the chance to check your account balances and transactions through text. Many reviewers state that the CIT mobile app is very intuitive so you shouldn’t have any trouble using it, even if you don’t consider yourself tech savvy.
CIT Bank Reputation
Before you go ahead and open a CIT Bank account, you might want to know about its reputation. It has an A- rating on the Better Business Bureau (BBB). On TrustPilot, CIT earned 2.3 out of 5 stars due to negative customer reviews.
Most of the negative reviews have to do with poor customer service and difficulty opening deposit accounts. The majority of the five-star reviews praise CIT for a convenient banking experience and fast response times from the customer service team. You can always try out CIT Bank and move on to another financial institution if you’re unsatisfied for any reason.
How to Access Your Money
Even though there are no physical branches, CIT Bank makes it easy to fund your account and withdraw money.
Deposits
You can fund your account through these methods.
Mobile app: With the mobile app, you can deposit checks and make transfers quickly and conveniently.
ACH transfer: The simplest way to fund your account is to transfer funds electronically from your external bank accounts. Note that it may take up to two business days for the money to show up.
Check: You can mail a physical check to CIT Bank.
Wire transfer: CIT Bank accepts funds via wire transfer.
Withdrawals
Here’s how you can make withdrawals:
CIT Savings Connect: The CIT Savings Connect allows you to make up to six withdrawals or transfers per statement cycle. Keep in mind that any withdrawal and transfer requests you submit via mail don’t count toward this limit. The same goes for telephone requested withdrawals and transfers.
ACH transfer: Free ACH transfers between your account and an external bank account are available.
Check: You can call CIT and ask them to mail you a check without paying a fee.
How to Get Started
To open an account with CIT Bank, visit their website and click the green “Open Account” button on the home page. You can complete the application in 5 minutes or less. Be prepared to provide the following information:
Your home address
Your phone number
Your email address
Your Social Security number
You’ll also need to fund your new account. You can transfer funds from an external checking or savings account, wire funds to your new account, or mail a check to the following address: CIT Bank, N.A. Attn: Deposit Services, P.O. Box 7056, Pasadena, CA 91109.
Lastly, CIT will make two test micro-deposit to your account. You’ll receive an email within three business days that asks you to verify them. The bank will process your transaction as soon as you do.
CIT Bank Alternatives
While CIT Bank offers a lot of benefits, it’s not right for everyone. If you decide CIT isn’t the best choice for your unique needs and preferences, consider these alternative options. Some are online banks while others are traditional financial institutions with brick and mortar locations.
Ally Bank
Like CIT Bank, Ally Bank is an online only bank that offers low fees and high rates. Its product lineup includes checking accounts, savings accounts, CDs, credit cards, mortgages, car loans, personal loans, and retirement accounts. Perhaps the greatest benefit of Ally Bank is that it doesn’t charge any fees.
Capital One
Capital One has approximately 300 branches in select states and more than 50 Capital One Cafes that allow customers to open accounts, deposit cash and checks, and hang out. It also offers no-fee access to more than 70,000 ATMs and attractive rates on savings accounts and CDs. This bank might make sense if you want competitive rates but prefer the option of an in-person banking experience that is not available with CIT.
Chime
Chime isn’t a traditional bank or online bank like CIT. It’s a mobile banking app that provides banking services through Bancorp Bank, N.A. and Stride Bank. The Chime checking account comes with exciting perks like automated savings tools, early direct deposits and free access to over 60,000 fee free ATMs across the country. The Chime high yield savings account is also a solid choice thanks to its competitive interest rate and lack of monthly fees as well as minimum balance requirements.
Citibank
Citibank sounds like CIT Bank but is one of the largest banks in the world. It has hundreds of locations in the U.S. and thousands overseas. If you frequently travel abroad for business or pleasure and want access to branches and ATMs, it should be on your radar. It offers a plethora of accounts but they do come with fees. The good news is many of the fees can be waived if you meet certain balance or direct deposit requirements.
Discover Bank
When most people think of Discover, credit cards come to mind first. But Discover is actually an online bank that’s similar to CIT Bank. Its plethora of products include checking and savings accounts, personal loans, student loans, home equity loans, and mortgage refinancing. Discover also offers cash back on debit card purchases and, of course, credit cards with various rewards.
PNC Bank
PNC Bank is a traditional bank with brick and mortar locations. Some of its most popular products are the PNC Standard Savings account and Virtual Wallet, which combines a traditional checking and savings account. PNC also offers numerous CDs and free budgeting tools. It offers online banking, like CIT Bank, plus a robust mobile app.
Huntington Bank
Huntington Bank is a leading bank in the Midwest with branches in states like Ohio, Michigan, and Indiana. It provides checking and savings accounts, personal loans, auto loans, mortgages, credit cards, insurance, and investment options. Other perks include a 24-hour grace period, all day deposits, and online bill pay. You can download the Huntington app and bank on the go, like you’d be able to with CIT.
Bank of America
Known as one of the largest banks in the country, Bank of America has more than 6,000 locations throughout the U.S. Just like CIT Bank, it has a highly rated mobile banking app. In addition to checking and savings accounts, it has a Preferred Rewards program, which comes with perks like higher interest rates, waived fees, and cash back for certain transactions.
TD Bank
TD Bank has a strong presence in the Eastern part of the U.S. It offers many of the same products as CIT, such as personal checking accounts, personal savings accounts, and mortgages accounts. TD stands out for its generous bonuses and minimal fees. We can’t forget its intuitive mobile app, which makes it a breeze to bank on the go.
Citizens Bank
Citizens Bank is a national bank with locations in the New England, Mid-Atlantic and Midwest regions. Just like CIT Bank, it doesn’t charge monthly maintenance fees as long as you meet specific criteria, like making one deposit per month.
Additionally, many accounts are free of minimum balance requirements. In addition, Citizen offers the Peace of Mind overdraft protection program which will send you an alert if you overdraft your account. Other perks include an overdraft fee grace period and early paycheck deposit and early paycheck deposit.
Bottom Line
If you feel comfortable with online banking and would like to take advantage of the best annual percentage yield APY available, CIT Bank is a great choice. You’ll enjoy access to a plethora of products and watch your money work for you. While you won’t get to bank in-person, you can perform pretty much any banking task online or on your mobile phone via the CIT banking app.
CIT Bank FAQs
What types of products does CIT Bank offer?
CIT Bank offers deposit accounts, like checking accounts, high yield savings accounts, and money market accounts. It also provides CDs and home loans.
Who is CIT Bank for?
CIT Bank is a good fit if you’re looking for an online bank with high interest rates and low fees. You’ll be able to open and manage CIT Bank’s savings accounts and checking accounts from the comfort of your own home. If you prefer a traditional bank with physical locations, you might want to explore other options, like Bank of America, PNC Bank, and Huntington Bank.
Is CIT Bank FDIC insured?
Yes, CIT Bank is insured by the Federal Deposit Insurance Corporation. This means that if the bank fails for any reason, the federal government will protect your money up to $250,000 per depositor. The FDIC insurance can give you the peace of mind of knowing your money will be safe and sound, regardless of what happens to CIT.
Do I need a lot of money to open a CIT Bank account?
Each CIT account has its own requirements. However, many of its deposit accounts can be opened with as little as $100. This is great news if you’d like to start your savings journey but don’t have a lot of cash at your disposal.
Is it safe to bank with CIT?
CIT makes security a top priority. If you open an account with the bank, it will be protected with safety measures like antivirus protection, SSL encryption, firewalls, and account monitoring. With CIT, you don’t have to be skeptical about entering your personal information.
Is CIT Bank legitimate?
CIT Bank is a division of First Citizens Bank, which dates back to the 1800s. Plus it’s FDIC-insured.
Where can I go to find CIT Bank’s routing number?
Log into your online account to find your CIT Bank routing number. For online-only accounts, this number is 124084834.
Does CIT Bank have physical branches?
CIT Bank is a digital bank. This means there are no branches and you must do all your banking on your laptop, computer, or mobile device. Many reviewers state that the CIT website and mobile app are very easy to use so you don’t have to worry about a learning curve.
Is CIT Bank compatible with Zelle?
Yes. You can use Zelle to quickly send and receive money through the CIT Bank mobile app. Fortunately, you won’t have to pay any fees to do so as Zelle is free to use.
Should I open an account with CIT Bank?
You might benefit from a CIT Bank account if you’re looking for a financial institution that offers high interest rates and low fees. However, you should feel comfortable with online and mobile banking as you won’t be able to step into a local branch to deposit a check or ask a question.
Open a BMO Harris Premier™ Account online and get a $500 cash bonus when you have a total of at least $7,500 in qualifying direct deposits within the first 90 days of account opening. Expires 9/15. Conditions Apply.
We both know why you’re here. Maybe you were too lazy to get up and get your checkbook. Maybe you don’t have a checkbook. But now, you’re expecting a list of Wells Fargo routing numbers.
And you won’t be disappointed. And if that’s really all you came for, just click the appropriate link in the table of contents to the left or keep scrolling. But you could also stick around to learn more about routing numbers. Your call.
Wells Fargo Routing Numbers — All States
Every state has at least one Wells Fargo routing number. Texas has two. (Pop quiz, Texans: The area with its own routing number also isn’t on the same electrical grid as the rest of the state. What county is it?)
To find your routing number, scroll through the table. It’s in alphabetical order.
State
Wells Fargo Routing Number
Alabama
062000080
Alaska
125200057
Arizona
122105278
Arkansas
111900659
California
121042882
Colorado
102000076
Connecticut
021101108
Delaware
031100869
Florida
063107513
Georgia
061000227
Hawaii
121042882
Idaho
124103799
Illinois
071101307
Indiana
074900275
Iowa
073000228
Kansas
101089292
Kentucky
121042882
Louisiana
121042882
Maine
121042882
Maryland
055003201
Massachusetts
121042882
Michigan
091101455
Minnesota
091000019
Mississippi
062203751
Missouri
113105449
Montana
092905278
Nebraska
104000058
Nevada
321270742
New Hampshire
121042882
New Jersey
021200025
New Mexico
107002192
New York
026012881
North Carolina
053000219
North Dakota
091300010
Ohio
041215537
Oklahoma
121042882
Oregon
123006800
Pennsylvania
031000503
Rhode Island
121042882
South Carolina
053207766
South Dakota
091400046
Tennessee
064003768
Texas
111900659
Texas — El Paso
112000066
Utah
124002971
Vermont
121042882
Virginia
051400549
Washington
125008547
Washington, D.C.
054001220
West Virginia
121042882
Wisconsin
075911988
Wyoming
102301092
Wells Fargo Local & International Wire Transfer Routing Numbers
Banks have a special routing number for domestic and international wire transfers. Wells Fargo is no different.
The number for domestic and international wire transfers is 121000248.
FAQs
Routing numbers are straightforward. But that doesn’t mean you’re not curious about other aspects of it. The answers to these frequently asked questions should cover it.
What Is a Routing Number?
A routing number, also known as a routing transit number (aka RTN) or ABA number, is a nine-digit code the American Bankers Association assigns to identify a financial institution in a transaction. It quite literally helps route the transaction to the correct bank.
Every day, it helps millions of people get their payroll direct deposits, tax refunds, and government benefits. They can also use them to send ACH (Automated Clearing House) payments and wire transfers.
How Do You Find Your Routing Number on a Check?
Do you still have checks? You can find the routing number at the bottom left of your checks in those funny characters. Incidentally, it’s the one that’s not your account number or the check number.
How Do You Find Your Wells Fargo Routing Number Online?
Probably the easiest way to find your routing number is to just check your online account. How you find it depends on whether you’re looking on a desktop or mobile device, but it’s easy, either way.
To find it on your desktop, log in and go to your account summary. It doesn’t matter which account you choose unless the accounts are in different states or you need other information, such as your account number.
You can find the routing number by clicking the “Routing number” link located next to your account number under the account name or at the bottom of the summary. The numbers you need will pop up.
To find it on your phone or tablet, open the app and log in. Click on the account you need a number for. When it loads the summary, click the Routing & Details tab across the top. Your routing numbers are in the Account Info box.
Final Word
Your routing numbers are always handy in your app, but if you’d rather keep them in your wallet or smartphone notes, you can do that too. Unlike your account number, they apply to every person at the same bank in the same state (or country in the case of wire transfer numbers).
I’d stop short of tattooing them on your person, though. What happens if you switch banks?
But if you’d rather not keep track of them at all, that’s no problem too. You can always check bank resources or just search online for them.
@media (max-width: 1200px)
body .ns-buttons.ns-inline .ns-button-icon width: 100%; .ns-inline .ns-button –ns-button-color: #000000;
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.
Mastering your checking account is a crucial piece of the personal finance puzzle. In the mix, there’s a tricky bit that often gets missed: the returned check. So, what’s a returned check, and why should you keep an eye out for it? Let’s dive in and break it down.
Defining a Returned Check
A returned check, often synonymous with a “bounced check“, is a check that has not been honored by a financial institution due to a variety of possible issues. Understanding the check clearance process is key to comprehending why checks might be returned.
When you write a check, you are essentially issuing a promise that your financial institution will pay the designated amount to the recipient’s account. If, for any reason, your financial institution refuses to fulfill this promise, the check “bounces” back to the issuer. This refusal often has more to do with the check writer’s account than the check recipient’s account.
Common Reasons Why Checks Are Returned
Understanding why checks are returned can help you avoid this inconvenient and potentially costly scenario. Here are some common causes:
Insufficient funds: A primary cause for returned checks is insufficient funds in the check writer’s account. If your checking account doesn’t have enough money in it to cover the check amount, your bank or credit union will likely return the check. While sometimes this might result from an honest mistake, such as forgetting to account for an automatic payment, it’s always best to double-check your account balance before writing a check.
Post-dated checks: If a check is cashed or deposited before the date written on it, your financial institution may decide not to honor it and return it instead. While this largely depends on your bank’s policies, it’s always safer to avoid issuing post-dated checks.
Stop payment order: A check can be returned if the check writer issues a stop payment order. Essentially, this order instructs the bank not to pay the check. While a stop payment fee might be incurred, this could be a useful step if you believe there might be a problem with the check.
Closed account: A check drawn on a closed bank account will always be returned. If the check writer’s account has been closed for any reason, no payments can be issued from that account.
Signature mismatch: Financial institutions verify the signature on the check with the one on file at the bank. A discrepancy here might lead to a returned check.
Frozen account: An account might be frozen due to legal issues, ongoing fraud investigations, or other such reasons. In such scenarios, the financial institution will not honor checks drawn on the account.
Invalid check details: Clerical errors like an incorrect account number, routing number, or check number could cause a check to be returned.
The Consequences of Having a Check Returned
Beyond the inconvenience and potential embarrassment of having a check returned, there are several serious consequences to consider:
Bank fees for the sender: If you write a check and there aren’t sufficient funds in your checking account to cover it, you’ll likely face a non-sufficient funds (NSF) fee or a returned check fee imposed by your financial institution. These charges vary but can often be substantial.
Bank fees for the recipient: The check recipient’s bank may also charge a bounced check fee if a check is returned. This can create friction between the recipient and the check writer and potentially jeopardize their relationship.
Impact on your credit score: A returned check can lead to a dip in your credit score if not resolved quickly. In some cases, the recipient may report the bad check to credit bureaus, which can negatively affect your creditworthiness.
Legal consequences: Continuous patterns of writing bad checks can potentially result in legal trouble, with laws varying from state to state. Depending on the amount of the check and the laws in your jurisdiction, it could be classified as a misdemeanor or a felony.
Dealing with a Returned Check as the Check Writer
If you’ve inadvertently bounced a check, you should take immediate steps to rectify the situation. The first thing to do is contact your bank or credit union to understand why the check was returned and discuss the fees you might owe, such as the NSF fee or stop payment fee. Your financial institution is a critical partner in resolving these issues, even if the bounced check was due to an honest mistake.
Next, reach out to the check recipient. Open and honest communication can help prevent misunderstanding and maintain trust. Arrange to pay the amount owed, which could involve writing a new check if you now have sufficient funds in your account, or exploring alternative payment methods if necessary.
Dealing with a Returned Check as the Check Recipient
On the receiving end of a bounced check, it’s essential to contact the check writer directly and inform them about the issue. They may not be aware of the situation, and a simple conversation might be all it takes to get the issue resolved.
However, if the check writer doesn’t cooperate or rectify the situation, there are legal measures you can take to recover your funds. Remember to account for any associated fees you might have incurred, like the bounced check fee.
How to Prevent Returned Checks
Having a check returned is a stressful situation that most people would prefer to avoid. By following these practical tips, you can minimize the chances of facing returned checks:
Maintain sufficient funds: Keep track of your account balance and ensure there are enough funds to cover any checks you write. This involves being aware of any pending transactions that may affect your account balance.
Regularly monitor your account: Stay updated with your checking account activity. Most banks and credit unions provide online and mobile banking services that can help you keep an eye on your account balance and transactions.
Use overdraft protection: Overdraft protection services can prevent bounced checks by automatically transferring funds from a linked account to cover the check amount. While there may be associated fees, they are often less than overdraft fees.
Consider alternative payment methods: Given the evolution of digital banking, there are numerous alternative payment methods you can use. These include online transfers, debit cards, and personal loans, all of which offer different benefits and levels of convenience.
The Pros and Cons of Writing Checks
In today’s fast-paced, digital world, it’s important to understand the pros and cons of writing checks. While checks can be convenient for large transactions, they carry risks such as potential returned check fees and the need to maintain a sufficient balance in your checking account at all times.
Compared to other forms of payments, such as debit cards, electronic transfers, or personal loans, checks require a more active role in personal finance management.
Bottom Line
Understanding the dynamics of a returned check and how to avoid them is crucial for sound personal finance. By ensuring there is enough money in your checking account, actively monitoring your account, and considering alternative payment methods, you can avoid the inconvenience and potential financial and legal troubles associated with returned checks.
Remember that while mistakes can happen, habitual bounced checks can lead to serious consequences. Stay proactive, keep an eye on your account balance, and consider overdraft protection or alternative payment methods. Your personal finance journey is sure to be smoother if you take these precautions.
The 16-digit number on your credit card might remind you of the routing number you see on your checks or bank statements. But they aren’t the same.
In fact, there’s no such thing as a credit card routing number, even if it was issued by a bank or credit union. The series of digits you see on the front or back of your card is your credit card number, and it provides important information about the credit card issuer, the card’s payment network, and you (the card holder).
Read on to learn more about the differences between a routing number and a credit card number and why credit cards don’t need routing numbers.
What Are Routing Numbers?
A routing number is a nine-digit number used to identify a specific bank, credit union, or other type of financial institution in the United States. The American Bankers Association created routing numbers in 1910 to aid in processing checks. Routing numbers are still used today to help keep banking transactions secure, whether you’re making a direct deposit, an automatic bill payment, a wire or P2P transfer, or a phone payment.
Every bank has its own routing number — and some have more than one — that works kind of like a payment address. The routing number ensures the money from a financial transaction is correctly “routed” from one financial institution to another. Once the funds get to the proper financial institution, the money can then be moved into the designated bank account.
Unlimited 2% cash back rewards* and no annual fee.†︎
Earn 3% cash back on up to $12,000 in purchases your first year when you set up direct deposit through SoFi.** After that, earn 2% unlimited cash back on everything.*
Recommended: Routing Number vs. Account Number
Where Can I Find My Routing Number?
If you still use paper checks, and keep your checkbook handy, that’s probably the easiest place to look for your bank’s routing number. You should be able to find the routing number in the lower left corner of your checks.
The first nine digits are the bank’s routing number. After a gap, the next 10 digits are your account number. After another gap, the last few digits represent the number of the check you’re currently using.
You can also find your routing number by logging into your bank or savings account online. (If you have more than one account at a particular bank, your account numbers will be different, but the routing number for those accounts will likely be the same.) Or you can call your bank’s customer service line and ask for help getting the correct routing number.
If the checkbook or other bank paperwork you have is old, you may want to go online to confirm that the routing number you’re using is still current. Routing numbers can sometimes change, such as when two financial institutions merge, for example, or go through an acquisition. You should receive advance notice if that happens, but you may want to look just to be sure you’re using the most up to date routing number.
[embedded content]
Why Don’t Credit Cards Have Routing Numbers?
A routing number is used to move funds between two bank accounts — from your employer’s account to your checking or savings account, for example, or from your checking account to the electric company.
When you use your credit card, you aren’t depositing or transferring money. You’re borrowing money, and processing that transaction works differently. That’s why there’s no routing number on a credit card. Instead, the credit card issuer uses your credit card number to track your transactions and make sure they end up on your bill. The number also can help card processors identify the financial institution that will settle the payment when the card is used.
What Do the Numbers on a Credit Card Represent?
It’s important to note that your credit card number is not the same as your account number. Your credit card number includes your account number, but it has a few more digits. And each of those digits has a purpose.
Every credit card number is unique: If you apply for a credit card and you’re approved, the card you receive will have its own number. But most cards use a similar, formatted sequence that can be used to identify the card issuer, the payment network, and the account holder:
• The first number in this sequence typically represents the card’s payment network. Most credit cards start with a 3 (American Express), 4 (Visa), 5 (Mastercard), or 6 (Discover), as those are the major payment networks.
• The next five digits complete the card’s Bank Identification Number (BIN), or Issuer Identification Number (IIN), and can tell you about the card’s “issuer.” (The credit card issuer is the financial institution that gave you the card and manages your account.)
• The remaining digits — except, usually, the last digit — represent the cardholder and the account the card is connected to.
• And finally, there’s the “checksum” or “check digit,” which is used by card issuers and payment networks to catch errors and help protect against unauthorized card use.
Though this format may differ a bit from one card to the next — some card numbers may have 15 digits instead of 16, for example — all card issuers must follow a set of standards created by the International Organization of Standardization (ISO) and enforced by the American Network of Standards Institute (ANSI). This allows consumers to use their card or card number no matter where they are in the world.
Does a Debit Card Have a Routing Number?
Although a debit card is typically tied to at least one bank account, it does not have a routing number. Each debit card has a unique 16-digit card number that identifies the card issuer, the card network, and the bank customer and accounts to which it’s connected.
You read that right. While each credit card you own is linked to one specific credit account, your debit card may be linked to multiple accounts (checking, savings, etc.) if they’re at one financial institution.
How does the bank decide which account you want to use for each transaction? If you use your debit card to make a purchase, the money will be pulled from the account you’ve designated as your primary checking account. And if you’re using your debit card at an ATM, you should be able to see a list of all the accounts connected to that particular card, and you can make a deposit to or withdrawal from the account of your choice.
Your debit card will not be linked to your credit card account, however, even if it’s through the same financial institution. And even if your debit card has a payment network logo or hologram in the corner, you cannot use it as a credit card. The money will be withdrawn from your bank account, either right away or after a short delay.
Credit Cards vs Debit Cards
It can be useful to have both a credit card and a debit card on hand to help manage your finances. Though they look a lot alike, there are key differences:
Credit Cards
Debit Cards
Funds are borrowed from the bank.
Funds come directly from your own bank account.
You’ll pay interest if you carry a balance.
No interest is charged.
A credit card can help you build credit.
A debit card won’t help you build your credit.
A credit card can hurt your credit if you overspend.
A debit card can help you stay disciplined and avoid carrying debt.
You have access to cash when you need it.
You have access to cash when you need it.
Your card may offer rewards and discounts.
Most debit cards don’t offer rewards.
Each card is connected to a specific account.
One debit card can be linked to multiple bank accounts.
Recommended: Can You Use a Credit Card Like a Debit Card?
The Takeaway
Do credit cards have routing numbers? No. Though the routing number on your checks and the number on your credit card may look similar, they serve different functions.
A routing number helps ensure a payment comes from or goes to a specific financial institution, but it doesn’t contain information about the checking, savings, or business account the transaction is tied to. An account number is needed to make that happen. A credit card number, on the other hand, contains information about the card issuer, the payment network, and the card holder. It can help identify the financial institution that will settle the payment when the card is used, and it identifies the card holder who will ultimately be responsible for those charges.
Understanding the difference between these numbers — and knowing where to locate them when necessary — can help speed up your financial transactions and make them go smoother.
Looking for a new credit card? Consider a rewards card that makes your money work for you. With the SoFi Credit Card, you earn cash-back rewards on all eligible purchases. You can then use those rewards for travel or to invest, save, or pay down eligible SoFi debt. The SoFi Credit Card offers unlimited 2% cash back on all eligible purchases. There are no spending categories or reward caps to worry about.1
Take advantage of this offer by applying for a SoFi credit card today.
FAQ
What is a routing number?
A routing number is a nine-digit number that identifies your bank or credit union in a financial transaction.
Does a credit card have a routing number?
Credit cards don’t have routing numbers. Instead, credit cards have a 16-digit credit card number that identifies the card issuer, the payment network, and the card holder.
Where can I find my routing number?
The easiest way to find your bank’s routing number is to look at your paper checks or a bank statement. The first nine digits in the lower left corner are the routing number. You also can log onto your account online or call your bank’s customer service number to get the correct routing number.
Photo credit: iStock/RgStudio
SoFi cardholders earn 2% unlimited cash back rewards when redeemed to save, invest, or pay down eligible SoFi debt. Cardholders earn 1% cash back rewards when redeemed for a statement credit.1 1Members earn 2 rewards points for every dollar spent on eligible purchases. If you elect to redeem points for cash deposited into your SoFi Checking or Savings account, SoFi Money® account, or fractional shares in your SoFi Active Invest account, or as a payment to your SoFi Personal, Private Student, or Student Loan Refinance, your points will redeem at a rate of 1 cent per every point. If you elect to redeem points as a statement credit to your SoFi Credit Card account, your points will redeem at a rate of 0.5 cents per every point. For more details please visit SoFi.com/card/rewards. Brokerage and Active investing products offered through SoFi Securities LLC, member FINRA/SIPC. SoFi Securities LLC is an affiliate of SoFi Bank, N.A. The SoFi Credit Card is issued by The Bank of Missouri (TBOM) (“Issuer”) 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. 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. SOCC0423009
Money orders are a form of payment that are sometimes very useful if you need to transfer funds to someone. They can be obtained from various outlets, at typically a low fee, and can be a good way to move cash when a person doesn’t have or doesn’t want to use a bank account.
Here, you’ll learn more about what money orders are, how they work, when to use them, and what alternatives to money orders exist.
What Is a Money Order?
Think of a money order as a paper check that can never bounce because it has been prepaid by the sender. It can be cashed or deposited just like a check, but it offers a few benefits over checks beyond never bouncing.
For one thing, if for whatever reason you don’t have a bank account, that isn’t a problem. You don’t need a bank account to get a money order, cash one, or even use money orders to pay bills.
To send a money order, here’s the protocol of the U.S. Postal Service:
1. Take cash, a debit card, or a traveler’s check. You cannot pay with a credit card.
2. Fill out the money order at the counter with a retail associate.
3. Pay the dollar value of the money order plus the issuing fee.
Recommended: Can You Buy a Money Order With a Credit Card?
Where to Get a Money Order
Many of the biggest banks offer money orders and often require that they be purchased at a branch. There can be a $5 to $10 fee when buying a money order worth up to $1,000 (though the fee may be waived for premium accounts).
Sometimes the money order fee is also waived for members of the military. However, many banks require that you already have an account with them to purchase a money order.
Money orders are also issued at places like Walmart (with a maximum fee of $1, and the exact fee varying by location), convenience stores, credit unions, and the Postal Service.
Postal Service fees for money orders are based on the dollar amount: $1.45 for a money order of up to $500, $1.95 for one from $500 to $1,000 (which is the maximum amount for a single money order), and 50 cents for postal military money orders issued by military facilities.
Ready for a Better Banking Experience?
Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!
Advantages of a Money Order
Money orders may be safer than some other forms of money. For example, while a check contains sensitive personal information like your home address, phone number, and bank account and routing number (plus the name of anyone else on the account), a money order usually only contains the names of the payer and payee.
So a money order is usually a more anonymous and therefore a potentially more secure method of payment than a check, although some money order issuers may require an address. That’s usually in case the check’s payee needs to contact the sender about the payment.
Sometimes both halves of the transaction may have to include this information. If you’re unsure, the best bet is to just ask.
Potential Drawbacks
Here are a few of the cons of money orders:
• Fees. While you can pay bills with money orders, the small fees can add up if you’re relying on them for that purpose.
Check cashing stores may charge a flat fee of $2.99 per money order, while some might charge around 4% to 5% to cash a money order. Many banks usually will do it for free. Also note that there are banks that will deposit a portion of the order and then after a couple of days release the rest.
• Payment limits. Usually $1,000 is the ceiling for most money orders.
• Inconvenience. The fact that many banks require your presence to process a money order may make putting money orders you receive into use less convenient.
The cap on a money order’s value also means there’s a time investment if, say, you need to pay $2,000 to someone — that’s two money orders, two fees, and twice as much time spent getting them issued.
In addition, not all businesses may accept money orders. If you are trying to use one to pay a bill, check with the payee first. Every now and then, you may encounter someone who accepts only, say, online bill paying.
• Use in scams. A big strike against money orders overall — and this is why banks can be somewhat cautious in accepting them — is that they can be used in banking scams. Money orders are perceived as a safe way to receive payments, and that is true when they are legitimate.
But the news can share stories about counterfeit money orders that revolve around suspicious prizes, employment opportunities, classified ads, and so on. Because money orders are not checks, it can make them harder to trace. It’s a good idea to keep your receipt for a money order until you are sure the order has been received and cashed.
Alternatives to Money Orders
Sometimes vendors or recipients aren’t able to accept a check, and a money order might make sense. But there are digital age options like peer-to-peer payments or P2P transfers.
P2P platforms are often a free service offered by financial institutions that lets users send and receive money, usually in minutes.
And P2P transfers are generally quick, as fast as a few seconds. Examples of services people use for P2P payments are PayPal and Venmo, as well as Zelle which moves money in a slightly different way, from bank account to bank account, but is usually mentioned in the same breath with the others.
Also, many banks now offer ways to transfer money from one bank to another as part of their services, making it easy to move money between your own accounts and to other individuals and businesses.
Recommended: Pros and Cons of Electronic Banking
The Takeaway
Money orders are a paper financial tool, which, like a check, can move funds. They have the added benefit of being able to be used even if you don’t have a bank account, and the fees involved in getting one can be quite low. However, there is typically a $1,000 cap on the amount of a money order, and it can take some time and energy to get one.
If you’re looking for a simple way to move money from your bank account to another person at any time, consider a SoFi Checking and Savings online banking account. You’ll be able to send funds to a recipient, whether or not they bank with SoFi.
What’s more, a SoFi Checking and Savings Account offers a competitive annual percentage yield (APY) and charges no account fees, which can help your money grow faster. And you get to spend and save in one convenient place.
SoFi Checking and Savings: The smart and simple way to bank.
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. 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. SOBK0523023U
The ease of handling your financial transactions from your smartphone is truly unparalleled. Today, we’ll dive into an essential aspect of this popular platform: the process of adding money to your Cash App card.
Where can I load my Cash App card?
To add money to your Cash App card balance, you can load it directly through your Cash App account. This method requires linking a bank account or debit card to your Cash App account. Once linked, you can transfer money from your bank account to your Cash App balance. This is the most straightforward way to load money onto your card.
Additionally, you can deposit cash or paper money deposits into your Cash App account at participating retailers. Retailers such as Walmart, Walgreens, and several others often allow you to deposit paper money to your Cash App card at their customer service desk.
Here’s a full list of retailers that support cash deposits for Cash App:
7-Eleven
Dollar General
Duane Reade
Family Dollar
GoMart
H-E-B
KwikTrip
Rite Aid
Sheetz
Speedway
Thorntons
Walgreens
Walmart at the Customer Service Desk and Money Centers
How to Load Your Cash App Card at Retail Locations
To load your Cash App at a participating store, you’ll need to follow a few steps:
On your smartphone, open the Cash App home screen.
Click on the Cash Card tab.
Click on ‘Add Cash’ and then enter the amount that you want to add onto your Cash Card.
You will then see a unique Cash App barcode that you need to present at the register of the participating retailer.
The cashier will then scan the barcode, initiating the cash deposit to your Cash App account.
You pay the cashier the equivalent amount of paper money that you wish to add to your Cash Card balance.
The cashier will then confirm the transaction and deposit money to your Cash Card.
Remember that some retailers may charge a small fee for paper money deposits to your Cash Card.
Where can I reload my Cash App card for free?
To load your Cash App card for free, you can transfer money from a linked bank account directly from the app. Additionally, if you have a friend or family member who also uses Cash App, they can send money directly to your Cash App balance. You can then use this balance to load your card for free.
Direct deposit is another option for free Cash App deposits. If you receive paychecks, tax returns, or government benefits, you can set up direct deposit to go straight into your Cash App balance, essentially loading your card for free.
To set up direct deposit:
Go to the Banking tab on the app.
Select Deposits & Transfers.
Select Copy Account Details.
Provide the account and routing number to your employer or government benefits provider.
Tips and Tricks for Efficiently Loading Your Cash App Card
To keep your Cash Card ready for transactions, consider setting up direct deposit. Also, linking your Cash App to a traditional bank account or debit card allows you to transfer funds quickly and easily.
If you prefer dealing with paper money, locate Cash App reload locations near you where you can deposit cash. Remember to always confirm if the store charges a fee for depositing cash, and plan your reloads to minimize these charges.
Potential Pitfalls and How to Avoid Them
While adding cash to your Cash App account, there are a few potential issues to keep in mind:
Fees: While many transactions and services on Cash App are free, some may incur small fees, especially when depositing cash at participating retailers. Always confirm if there’s a fee before proceeding.
Scams: Always be cautious about whom you send money to or receive money from. Cash App transactions are instant and usually can’t be reversed.
Security: Keep your Cash App PIN private, and enable the security lock feature on your smartphone to protect your Cash App account.
Conclusion
Cash App offers a flexible, convenient way to manage your money without a traditional bank account. Whether you prefer to make a transfer from a linked bank account, receive direct deposits, or make a paper money deposit at participating stores, there are numerous ways to load funds onto your Cash App card. Always remember to use caution when making transactions to protect your financial information and avoid fees whenever possible.
With Cash App, you can enjoy benefits like free ATM withdrawals at participating ATMs, the ability to send and receive money instantly, and the convenience of managing your money directly from your smartphone. Cash App is available for download on both the Apple App Store and Google Play Store.
In case of any problems or if you need additional information, don’t hesitate to reach out to Cash App’s customer service for assistance. Happy transacting!
Frequently Asked Questions
Can I load my Cash Card at any bank?
No, you cannot directly load your card at a bank. However, you can make transfers from your bank account to your Cash App balance if your bank account is linked to your Cash App account.
Can someone else make a Cash App deposit for me?
Yes, another person can load cash onto your card by sending it to your Cash App account. You can then move the received funds to your card.
Is there a limit to how much I can load onto my Cash Card?
Yes, Cash App has a limit on the amount of money that can be loaded onto your Cash Card. As of now, you can load up to $7,500 per week onto your Cash Card. For more information, visit the Cash App website or consult the app’s help section.
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.
Save more, spend smarter, and make your money go further
If there’s one thing in life to always bank on, it’s to expect the unexpected. While we like to think we have everything figured out, it’s hard to predict when certain events will occur. Whether it’s an accidental fender bender in stop-and-go traffic, a crushed roof from a fallen tree branch, or an unanticipated medical emergency, having the right insurance coverage might save you time, money, and headaches.
One insurance coverage policy that may be worth investing in is renters insurance. Pew Research Center found that more people are renting today than at any point in the past 50 years. This study also found that certain demographic groups, such as those with lesser education, young adults, and non-whites, are more likely to rent than other groups. With more renters on the market than ever before, it’s important to consider the various financial protections renters can take advantage of.
If you’re living in a rental property and want to ensure you, your belongings, property, and guests are covered from any unforeseen circumstances, continue reading our guide to renters insurance coverage below.
What is Renters Insurance?
Renters insurance is a form of risk management that protects you and your property, and generally provides legal defense fees and medical costs for anyone who may become injured on your rented property if you are found at fault. Renters insurance is like most insurance policies, such as home and auto insurance, where you buy a policy and make recurring payments. Then, if anything were to happen, such as a burglary, you can make a claim, and your renters insurance will provide a certain level of compensation for the stolen items.
What Does Renters Insurance Cover?
If you’re wondering, “What does renters insurance cover?” the answer is, quite a lot, depending on the coverage you select. From vandalism to explosions and everything in between, renters insurance coverage may give you peace of mind knowing your valuable items are protected.
Personal Property
You can never predict when disaster strikes. Your roof caves in after a blistering snowstorm, freezing you out of your home. You run down the street to get some groceries and return to find your apartment was ransacked. Or, a clueless driver plows right through your living room. It’s either happened to you or someone you know and while sympathy can ease some of the pain, usually money is the only way to replace valuable items like furniture and electronics. That’s where renters insurance coverage comes in handy.
Here’s a list of some events where a renters insurance policy might have tenants covered:
Theft: If someone breaks into your house and steals your personal property, such as your laptop, cash, or other items, your renters insurance may cover you once you pay your deductible. Renters insurance doesn’t only cover items in your home either. If you go on vacation and get pickpocketed, or someone breaks into your car while shopping at the mall, you can file an insurance claim for those losses as well.
Vandalism: If someone breaks into your home and decides to destroy your property with mischievous intent, you can file a claim to get reimbursed. So, if the neighborhood kids decide to drive by and smash your mailbox with a baseball bat, your renters insurance policy will have your back.
Fire, windstorms, lightning, hail, or volcanic eruptions: Basic renters insurance may cover damage inflicted by fire, windstorms, lightning, hail, and even volcanic eruptions. If a flash storm rolls through during the summer and your home gets struck by lightning, many of the damages might be covered.
Smoke: While fires are covered under renters insurance, so is smoke. Sometimes, smoke can damage your personal property without a fire even being present. For example, if you live in an apartment complex and a neighboring unit catches on fire and smoke seeps into your apartment, your renters insurance coverage can help with smoke-related damages.
An aircraft or vehicle that’s not your own: Unfortunately, if you happen to drive your car into your home, renters insurance usually won’t cover the expenses. However, if another driver or an airplane crashes into your apartment, renters insurance might come to the rescue and pay for damages that are covered within your policy.
Snow, ice, or sleet collapse: While it’s a good practice to shovel snow off of your roof, sometimes it’s extremely difficult or impossible. If heavy snow, sleet, or ice causes your roof to collapse, your renters insurance policy can help cover replacement costs for damaged items.
A short-circuit: A short-circuit is when an electrical device malfunctions or fails. A short-circuit can cause a variety of problems, such as a damaged TV or appliance. And, if your power goes out and all of your food in your fridge and freezer spoils, you can file a claim to cover the cost of your perished food.
Water or steam overflow: You never know when a pipe will burst, and when it does, it can lead to all sorts of problems. Rest assured knowing your renters insurance policy may cover damages that result from water or steam overflow.
Frozen plumbing: Sometimes, the sheer cold is strong enough to freeze the water in plumbing and HVAC systems. Then, if you try and run hot water, the frozen water can expand and may lead to a cracked piped, pouring water throughout your home. Some renters insurance plans may cover these damages. However, if you were away when the frozen pipe burst and you didn’t take necessary precautions to keep your home properly heated, you may be at fault and left with no coverage.
Water or steam-heating appliances: Additionally, any water damage from water or steam-heating appliances, such as your dishwasher or laundry machine, may be covered by your renters insurance policy.
Falling objects: Have you ever wondered what would happen if an asteroid came crashing through your home? If so, have peace of mind knowing your renters insurance coverage may take care of the destruction from falling objects such as fallen trees and space debris.
Riots: If a riot breaks out around your apartment and someone damages your personal belongings, your renters insurance coverage can help take care of the costs.
Explosions: Whether a transformer blew up or someone set off an explosive device that causes damage to the home you rent, your renters insurance policy may help pay for any of your items that were destroyed.
Other scenarios: Renters insurance may cover other scenarios as well. For example, Trulia explains how renters insurance can cover things such as waterbed leaks and even dog bites. Additionally, renters insurance can even cover bank or credit card forgery if a thief snatches your financial information from your home and decides to go on a spending spree.
Living expenses
The answer to the question, “What does renter’s insurance cover?” is not complete just yet. Let’s say, for example, a tree came crashing down in the winter, leaving a gaping hole in your home or apartment. You most likely won’t be able to live in your house, or you might freeze. If your place of residence becomes uninhabitable, renters insurance can help cover your living expenses while your rented home or apartment is under construction. These expenses include things such as hotel costs, groceries, and other incidental expenditures.
What Does Personal Liability Renters Insurance Cover?
A final area of expenses rental insurance covers is personal liability. Renters liability insurance may cover you if you are at fault for injuries that occur on your property. For example, if someone gets hurt on your property and decides to file a lawsuit, renters liability insurance might help pay for your legal fees, as well as medical expenses of the person who got injured.
Renters liability insurance may also cover the expenses of another person’s stolen or damaged property that happens in the home or apartment you rent. So, if you decided to borrow your brother’s laptop, and it was destroyed after a fire, a renters liability insurance might take care of the cost.
Ultimately, coverage can vary between insurance providers, so do your research and consider all of your options before selecting a renters insurance policy.
What Does Renters Insurance Not Cover?
While it may seem like renters insurance covers everything, there are a few things that are often not covered.
Personal belongings damaged from natural disasters such as earthquakes and floods: If you live in a high-risk area for natural disasters, such as Tornado Alley, along a river, or in a hurricane-prone area, you may need flood, earthquake, or other types of specialized insurance policies.
Theft or damage to your vehicle: While the valuables inside your car may be covered by renters insurance, any damage to your car, or theft of your car, is not typically covered. To insure your car, you might consider purchasing auto insurance.
Your roommate’s belongings: Unfortunately, your roommate won’t be able to freeload off your renters insurance plan. Instead, if they want their valuables covered, they will need their own renters insurance policy.
Damage caused by rodents and pests: Any damage from rodents such as bed bugs, mice, cockroaches, and other pests are often not covered by renters insurance.
High-value items like jewelry, antiques, and family heirlooms: If you have expensive items, such as antiques, high-end jewelry, or other valuable pieces, your renters insurance may not cover the cost if they’re stolen or damaged. Instead, you might consider purchasing additional coverage or buying a standalone policy.
Damages incurred from nuclear war or terrorism: This may not be your first thought, but many renters insurance policies exclude damages from nuclear war or terrorism on their plan. If you’re worried your home or apartment may be subject to destruction from war or terrorism, you might consider purchasing extra coverage.
How Much Does Renters Insurance Cost?
According to the Insurance Information Institute, the average cost of renters insurance premiums in 2016 came in at about $185 a year. Broken down monthly, the average renters insurance policy costs about $15.50 per month. When searching for renters insurance, it’s also important to know how your credit score comes into play.
The Insurance Information Institute explains how your credit score may impact your insurance score to determine if you have a history of making claims. A history of filing more claims may lead them to charge you more money. At Turbo, you can take advantage of our financial health tool and obtain a free credit report to determine where you stand so you can purchase a renters insurance policy that fits in your budget.
Key Takeaways on Renters Insurance
If you’re asking yourself, “What does renters insurance cover?” hopefully you can use this guide as a resource. Renters insurance coverage is a great way to protect some of your personal items and belongings, as well as the belongings and health of others visiting your property, so consider if this kind of policy is right for you.
Save more, spend smarter, and make your money go further
Previous Post
Clever Ways to Lower Your Electricity Bill Over the Summer
Next Post
What Is a Routing Number?
Browse Related Articles
Housing Finances
6 Nightmare Scenarios Where Renter’s Insurance Ca…
Financial Planning
Rent or Own, Here’s How to Insure Your Home
Financial Planning
Common Questions About Renters Insurance
Financial Planning
5 Different Types of Insurance Policies & Coverage…
Housing Finances
Property Detective: A Checklist for Renters (Infographi…
How to Shop for Life Insurance Using Mint.com
Rethinking Insurance: What You Really Need; What You Do…
Foolish Advice on Homeowners’ Insurance
Financial Planning
How to Choose an Insurance Plan for Your New Smartphone
Three Principles of Personal Finance: #3 Prepare for th…