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Is Facebook the IPO of a generation? The much-anticipated initial public offering of the world’s most popular social networking site, Facebook, took place this morning on the NASDAQ. With it, the dreams and technologies of the millenial generation have taken root as a core part not only of American society – but of its formal economy.
Already, Facebook bears the distinction of having the largest market valuation of any US company at IPO at $104.1 Bn. That’s no small feat for a company that didn’t even exist eight years ago. The offering, which was originally priced at $38 per share, has “popped” to over $42/share as of the time of writing, creating over $16 Bn in value for the company. That could grow to $18.4 Bn, making it also the largest initial share offering in US history.
But all these big numbers aside, the Facebook IPO is also the hallmark of the new economy. Facebook doesn’t make anything, and its users aren’t even buying any products or servics (with the exception of some gaming functions), but most people still believe it has great value. The power of connectedness – and the technologies that enable us to share and display information across our network – has now taken root.
That, some analysts say, explains in part the $1 Bn Facebook paid for photo-sharing startup, Instagram last month: Sure, Facebook could’ve created a competitor, but Instagram was already growing to be hugely popular – and it’s a bit harder to convince an existing social network to migrate. It also helps explain the company’s big gains in advertising revenue (and its price to earnings value). It’s the network itself, that has value. Advertisers can use it to pinpoint people based on preferences in a more targeted fashion. It’s also a place where people are more tuned in; people care more about their friends’ lives than tv, and the power of social networking holds values for individuals and companies, alike. Ever heard of the term “going viral”?
In the end, we’re all part of social networks, whether we use applications like Facebook, or not. But it took a Harvard student in his dorm room to harness that power for the market.
What’s your take? Is Facebook the IPO of a generation? Will you “like” the social network by investing in its stock?
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The rise of cryptocurrencies has led to a significant shift in the financial landscape. As crypto gains popularity, many financial institutions are adapting to this change by offering specialized banking services to accommodate crypto transactions.
This article explores the best crypto-friendly banks, explaining why they are considered top choices in the ever-evolving crypto space.
15 Best Crypto-Friendly Banks
Here are the top crypto-friendly banks and banking services providers, each offering a unique set of services tailored to the needs of cryptocurrency enthusiasts.
1. Cash App
Among its many features, Cash App allows users to buy Bitcoin and instantly withdraw funds to personal wallets.
Partnerships with banks such as Sutton Bank and Lincoln Savings Bank enable Cash App to provide banking services. This collaboration between Cash App and crypto-friendly banks ensures that customers have a convenient and secure way to manage their crypto transactions.
Sutton Bank also issues the Fold Visa® Prepaid Card, which allows you to earn Bitcoin on every purchase.
See also: How Does Cash App Work?
2. Revolut
Revolut is a UK-based fintech company that was founded in 2020. It has quickly become a major banking player in the UK, Europe, and the US, as well as a top crypto-friendly bank. Their user-friendly mobile app lets customers easily buy cryptocurrencies like Bitcoin and manage their digital assets. The app also features automatic buy orders that activate based on certain market conditions, making the crypto investment process even smoother.
What sets Revolut apart from competitors is the variety of crypto-related services they offer. Customers can stake select crypto assets, make off-chain transactions between users, and pay bills using crypto through automatic conversion to fiat currency.
With over 50 cryptocurrencies on the platform and plans to expand, Revolut is dedicated to staying ahead in the digital currency world. Although there are transaction fees for crypto payments, users can reduce these fees with account upgrades. Revolut’s upcoming launch of its native coin, RevCoin, highlights their commitment to providing a diverse and dynamic crypto banking experience for their growing customer base.
3. Quontic
Quontic is the first online bank to offer a rewards checking account that allows you to earn Bitcoin. With its innovative Bitcoin Rewards Checking account, users can easily integrate crypto into their everyday banking experience. Quontic only supports Bitcoin. However, its unique offering makes it a top choice for those looking to capitalize on the increasing prominence of digital currencies.
The Bitcoin Rewards Checking account offered by Quontic stands out due to its 1.50% rewards on all Point of Sale (POS) transactions made with the associated debit card. These rewards are paid out in Bitcoin, allowing users to accumulate the popular cryptocurrency as they make everyday purchases. Furthermore, the account acts as a secure wallet for users to store their Bitcoin, providing a seamless banking experience for crypto enthusiasts.
This FDIC-insured bank account requires a minimum opening deposit of $500 and is not available in Hawaii and North Carolina.
4. SoFi
SoFi is an innovative financial institution that has embraced the crypto revolution. Through its SoFi Invest platform, customers can trade crypto and access educational resources to learn about digital currencies.
With just a $10 minimum investment, users can start trading Bitcoin, Ethereum, Dogecoin, Cardano, and over 20 other coins on a platform available 24/7. Users can trade cryptocurrencies alongside stocks, fractional shares, and ETFs within the SoFi app, making it an all-in-one investment platform.
SoFi takes security seriously and offers a range of tools to protect your crypto holdings from theft. These include two-factor authentication, SSL encryption, partnering with trusted exchanges like Coinbase for transactions, and not sharing personal information with trading partners or custodians. This ensures that your investments are safe and secure on the platform.
The SoFi app also provides a wealth of educational resources, such as their Crypto Guide for Beginners, Crypto Glossary, and Guide to Crypto Staking, to help you make informed investment decisions. Keep in mind that due to its volatility, crypto carries a higher degree of risk compared to traditional investments.
Crypto trading on SoFi Invest is subject to a 1.25% markup on crypto transactions, which is added to the market price from the exchange. While there are no plans to allow transfers between SoFi Invest accounts and external wallets at this time, the platform’s focus on security and convenience makes it an attractive option for those interested in trading crypto.
5. Vast Bank
Vast Bank has made history as the first full-service national bank to provide customers with the ability to buy, sell, and hold cryptocurrencies. Through an intuitive mobile banking app, users can access both a checking account with a competitive 2.65% annual percentage yield (APY) and a dedicated crypto account.
As a nationally chartered and federally regulated U.S. bank, Vast Bank ensures a high level of security and reliability for its customers. By using the Vast Crypto Banking app, users can easily deposit USD into their checking account, purchase cryptocurrencies, and safely store their crypto alongside their fiat funds.
This crypto bank currently supports a wide range of popular cryptocurrencies. Among them are Bitcoin (BTC), Ethereum (ETH), Filecoin (FIL), Cosmos (ATOM), Chainlink (LINK), Cardano (ADA), Litecoin (LTC), Aave (AAVE), Bitcoin Cash (BCH), Orchid (OXT), Tezos (XTZ), and Algorand (ALGO).
Vast Bank offers the convenience and safety of traditional banking, such as FDIC insurance for checking accounts, a debit card with access to 56,000 free ATMs worldwide, account transfers, bill pay, and mobile deposits. However, it is important to note that digital assets held in the crypto account are not insured by any government entities, including FDIC or SIPC.
6. Wirex
Wirex is a standout in the world of crypto-friendly banks, offering users a seamless banking experience that supports both fiat currencies and cryptocurrencies. Available in 130 countries and boasting over 3.5 million users worldwide, Wirex provides a multi-currency account and a Visa card for convenient fiat payments.
One of the main attractions of Wirex is its generous savings interest rates, which reach up to 6% for cryptocurrencies such as BTC, ETH, and LTC. For those who prefer to save in fiat currencies like USD, AUD, HKD, or DAI, an impressive 12% interest rate is available. Additionally, users can earn an extra 4% interest when saving in WXT, Wirex’s native token.
Built on both Ethereum and Stellar blockchains, WXT offers exceptional performance and versatility within the decentralized finance (DeFi) sector. Wirex rewards its users with up to 4% WXT cashback each time they use their card for in-store or online purchases. The multicurrency card allows for hassle-free payments when traveling abroad, automatically converting to the local currency with no exchange fees, and offering savings of up to 3% on international transactions.
Beyond being a Bitcoin-friendly bank, Wirex offers a wallet app that supports over 100 coins and includes DeFi and NFT capabilities. This combination of features makes Wirex an excellent choice for those seeking a comprehensive and crypto-friendly banking experience.
7. Ally Bank
Ally Bank is an online bank that has embraced the crypto revolution, offering an array of services to support digital assets. Some notable features from Ally’s website include:
Crypto trusts: Ally offers private trusts that invest in and track the price of specific cryptocurrencies, allowing customers to indirectly trade them as they would a stock.
Bitcoin futures: Ally provides access to exchange-traded funds (ETFs) that invest in the purchase of bitcoin futures contracts. This allows customers to gain exposure by speculating on the future price of Bitcoin without directly owning it.
Crypto stocks: Ally enables customers to invest in publicly traded companies that buy and hold cryptocurrency. Buying shares of these stocks provide indirect exposure to crypto.
Ally Bank’s crypto trading services on the Ally Invest platform, integration with popular cryptocurrency exchanges, and digital asset storage and management make it a top choice for crypto enthusiasts seeking a crypto-friendly bank.
8. BankProv
BankProv is a forward-thinking US financial institution that provides a range of services, including business banking, cash management, personal banking, and cryptocurrency offerings. Embracing modern technologies, this crypto bank utilizes API banking, the ProvXchange network, and specializes in lending.
Its support for various digital assets ensures that customers can access a diverse range of investment options, making it a strong contender among crypto banks. Customers can enjoy real-time transactions through the ProvXchange network, while the API integration allows for seamless interaction with various platforms and software solutions.
BankProv provides crypto-backed loans and credit lines for organizations secured by Bitcoin or Ether, as well as equipment and infrastructure loans for crypto mining operations. Additionally, Bitcoin ATM operators can take advantage of secure cash vault services, expedited money transfers, and other perks tailored to businesses operating within the crypto sector.
9. Juno
Established in 2019, Juno is a fintech company offering a digital banking platform with hybrid accounts for managing both cash and cryptocurrencies. Despite not being a traditional bank, Juno’s exceptional services make it a top contender for cryptocurrency investments.
Juno enables users to purchase a range of popular cryptocurrencies without fees, and provides two types of checking accounts: Basic and Metal. The Basic account is free with a $5,000 daily funding limit, while the Metal account, free with monthly qualifying deposits of $250 or more, offers a $25,000 daily limit and up to six times higher savings.
Bonus rewards are a highlight of Juno’s offerings, with users earning up to 5% on cash deposits and yearly cashback for payments with cash or crypto. The JCOIN Loyalty Program allows customers to earn tokens and redeem them for exclusive discounts and cashback boosts. New users can benefit from a welcome offer, which includes bonuses for initial deposits, trades, and referrals.
Free cash withdrawals are available at Allpoint and MoneyPass® ATMs, with additional out-of-network withdrawals for both account types. Juno’s mobile banking app is compatible with iOS and Android, supporting Apple Pay, Google Pay, Samsung Pay, and debit cards. The platform also offers the unique feature of converting paychecks into crypto through partnerships with over 500 payroll providers, allowing users to automate their investments seamlessly.
10. Monzo
Monzo is an innovative online-only bank that has gained popularity in the UK for its modern approach to banking. More recently, Monzo has expanded its services to accept applications from US customers, broadening its reach in the financial market.
With a Monzo account, customers can manage all their bank accounts, including non-Monzo accounts, on a single dashboard through the Monzo app. While the bank itself does not support crypto trading, users can still invest their Monzo account funds into cryptocurrencies through crypto exchanges like Coinbase and Crypto.com. This feature provides Monzo users with indirect exposure to cryptocurrency while still enjoying the convenience and security of a modern bank.
11. Axos Bank
Axos Bank, a crypto-friendly institution, started providing its commercial banking clients with TassatPay access in May 2022. TassatPay is a private, permissioned blockchain-based digital payments platform that enables 24/7 real-time payment capabilities and has processed over $400 billion in transactions. This platform is endorsed by a primary bank regulator.
Axos also offers exposure to various crypto-related exchange-traded funds (ETFs). These include the Bitwise 10 Crypto Index Fund (BITW), Bitwise Crypto Industry Innovation ETF (BITQ), ProShares Bitcoin Strategy ETF (BITO), and ProShares Short Bitcoin Strategy ETF (BITI), among others.
12. Standard Chartered Bank
Standard Chartered Bank has demonstrated a strong interest in cryptocurrencies and blockchain technology, regularly conducting research and sharing insights on digital currencies. Recognizing the growing demand in the market, Standard Chartered is launching a crypto exchange and brokerage service to provide its customers with access to digital assets.
The bank’s direct crypto trading and investment services are still in development. However, their commitment to staying informed about the latest trends in the digital currency market and taking steps to launch new services indicates their growing involvement in the crypto space.
13. USAA
USAA, a financial institution dedicated to serving current and former military personnel and their families, provides a range of tailored financial products and services. Among these offerings is an integration with Coinbase, a leading cryptocurrency exchange.
Through this partnership, USAA customers can conveniently link their Coinbase accounts to their USAA portal, enabling them to easily monitor their digital asset balances and track transactions. This feature streamlines the process of staying informed about one’s cryptocurrency holdings and activity, offering an added layer of convenience for USAA members.
14. Fidor
Fidor is a pioneering online bank headquartered in Munich, Germany. It offers innovative banking services designed to support digital assets. Its integration with popular cryptocurrency exchanges and crypto wallet services makes it an ideal choice for those looking for a crypto-friendly bank. Additionally, Fidor provides support for ICO and token sales, giving customers access to new and emerging cryptocurrencies.
15. PayPal
Although PayPal is not a bank, it offers various banking services and has expanded its support for cryptocurrency in recent years. PayPal enables users to buy, sell, and hold cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
By partnering with Paxos Trust Company, a regulated provider of cryptocurrency products and services, PayPal ensures a secure and compliant experience for its customers. While it does not offer the full range of services that traditional banks do, PayPal’s support for crypto makes it an appealing choice for those who want to manage their cryptocurrencies alongside other financial transactions.
Bottom Line
The increasing popularity of cryptocurrency has led to a growing number of crypto-friendly banks, offering a range of services to accommodate the unique needs of digital asset users. These banks provide an array of services, from crypto trading and custody to debit cards and loans backed by crypto.
As the crypto industry continues to evolve, it’s crucial to stay informed and choose the best crypto-friendly bank to suit your needs. With so many crypto-friendly banks available, you can now manage your crypto alongside traditional banking services, providing a seamless and efficient way to navigate the world of cryptocurrencies.
Frequently Asked Questions
What makes a bank crypto-friendly?
A crypto-friendly bank is one that supports and facilitates cryptocurrency transactions, storage, and trading. These banks typically offer a range of services tailored to the needs of digital asset users, such as integration with popular crypto platforms, crypto-backed loans, and the ability to spend crypto using a debit card.
Can I store my cryptocurrencies in a traditional bank account?
While some banks offer crypto-friendly services, cryptocurrencies are typically stored in digital wallets rather than traditional bank accounts. However, many crypto-friendly banks provide integration with popular crypto wallets and exchanges, allowing you to manage your crypto alongside your fiat currency.
Are crypto-friendly banks safe and secure?
Many crypto-friendly banks are FDIC-insured and follow strict regulatory requirements to ensure the security of your assets. It’s essential to research each bank’s security measures, such as two-factor authentication, encryption, and secure storage of crypto before choosing a crypto-friendly bank.
How do I choose the best crypto-friendly bank for my needs?
To choose the best crypto-friendly bank for your needs, consider the range of services offered, the bank’s reputation, and any fees associated with their services. You may also want to look for banks that provide educational resources, customer support, and a user-friendly platform for managing your crypto.
Can I use a debit card to spend my cryptocurrencies?
Some crypto-friendly banks and financial service providers offer debit cards that allow you to spend your crypto just like traditional fiat currency. These cards typically convert your cryptocurrencies to the local currency at the point of sale, making it convenient to use crypto for everyday transactions.
Do crypto-friendly banks offer loans and credit products?
Some crypto-friendly banks offer crypto-backed loans and lines of credit. These products allow you to leverage your crypto without selling it, providing greater financial flexibility for crypto users.
By Peter Anderson15 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited August 28, 2017.
One thing my wife and I have been doing lately is to try spending less on entertainment and “fun money” than we have in the past. We know if we want to get ahead we need to cut down on those miscellaneous entertainment dollars.
Cutting down on those dollars doesn’t mean we can’t have any fun, however. Here’s a few ways that we’re having fun, on a budget.
Game Night
We’ve started having game nights, both with each other, and with our friends. It makes for a fun night, and once you purchase some games, doesn’t cost anything additional! Here are a few of our favorite games that we’ve been playing lately. Most of these games can be bought for between $20-30 on Amazon, or slightly cheaper used on ebay or craigslist.
Settlers of Catan: Settlers of Catan was one of those games I wasn’t sure that I was going to enjoy. It seemed a little strange, something that only people who enjoy role playing games would enjoy. Boy was I wrong! This game is so much fun that I bought an arcade version for our Xbox as well! Plus, there are a ton of expansion packs that can keep this game fresh for years to come. From Amazon: The Settlers of Catan from Mayfair Games is an award-winning strategy game where players collect resources and use them to build roads, settlements and cities on their way to victory. The board itself is variable, making each game a little different from the next. Each round of The Settlers of Catan is intended to keep three or four players ages 10 and above engaged for up to 90 minutes.
Carcassonne: Carcassonne is another European style board game that has refreshingly different and never dull game play. From Amazon: The Carcassonne is a clever tile-laying game. The southern French city of Carcassonne is famous for its unique roman and medieval fortifications. The players develop the area around Carcassonne and deploy their followers on the roads, in the cities, in the cloisters, and in the fields. The skill of the players to develop the area will determine who is victorious. The game is for ages 8 and up and 2 to 5 players.
Blokus: We just bought Blokus over Christmas using gift cards we had received. You can think of the game as a sort of the board game equivalent of Tetris. You have 4 teams all trying to fit their differently shaped blocks into the board. Whoever fits the most of their pieces into the board wins! There’s a lot of strategy involved, and its surprisingly fun to play! From Amazon: Fun for both kids and adults, Blokus is a strategy board game that challenges spatial thinking. Bright colors and simple rules make it ideal for ages five and up, but adults will certainly be engrossed by this unique and challenging game.
Ticket To Ride: Ticket to ride is another board game that really is quite a bit different from a lot of the board games we have become used to here in the U.S. I’ve played this on the Xbox 360 as well, and it’s a lot of fun! From Amazon: Ticket to Ride is a cross-country train adventure where players collect cards of various types of train cars that enable them to claim railway routes connecting cities throughout North America.
Farkle: Farkel is a fun game for parties where you pass around a cup of dice, trying to score on different combinations of dice. It’s a fun, and sometimes frustrating game! From Amazon: Farkel is a fun, fast-paced, high-score game that takes just two minutes to learn. You roll six dice, remove only the dice you want to use for points, then re-roll the remaining dice. Some scoring dice must be removed after every roll. If you can eventually make all six dice count for score, pick them all up and keep going. If none of the dice you roll count for score, you lose your turn and any points you made during that turn. The first player to score more than 10,000 points, wins.
The Great Dalmuti: The Great Dalmuti is a fun fast paced card game where the whole goal is to become a part of the Dalmuti ruling class. The game is easy to learn, and can quickly turn into an all night game. From Amazon: The deck is dealt out to all players and the object is to get rid of your cards as fast as possible. The person who first got rid of all his cards becomes The Great Dalmuti. Seat positions change and the cards are re-dealt. Quite a unique game in which no score is kept.
Movie Night
Have a movie night at home, instead of going out and spending $20+ on a first run movie! Here are a few ways to make it cheap.
Rent a Redbox Movie: Head to your local McDonald’s, grocery store or gas station and rent a new release movie for $1! If you want to make it even cheaper, check out my article on getting free redbox rentals.
Netflix DVDs and Streaming: If you’ve got a Netflix.com account, plan ahead, and pick one of their movies to be sent for movie night. You’re paying for the account, you may as well use it, right?
Even better, if you have a Netflix account and an Xbox 360 you can now stream selected movies to your console, some even in high definition! No waiting! The selection isn’t the greatest yet, but it is expanding every day. Sign up for a free 2 week trial at Netflix here!
“Rent” a Movie from the Library: Want to make it especially cheap tonight? Stop by the library on the way home and get one of their movies for free! You can usually keep it longer than a regular rental, and the price can’t be beat! Selection may vary depending upon your location.
What Are Your Cheap Entertainment Ideas?
So there are a couple of ideas for ways to have some fun, on a budget. We’ve been doing it quite a bit lately, and we’re saving a lot of money!
What are some ideas that you’ve come up with for your family to have fun without spending a lot of dough? Leave a comment and share your idea here!
This guide was written in an attempt to help my wife & I save money when dining out. Over the last 6 months we have adhered to its principles allowing us to save ourselves a lot of money while still enjoying time away from home every once in awhile. I wanted to share our guide with you in order to help you cut back on your restaurant spending without having to completely cut it out.
When used, the techniques listed below often yield unexpected benefits in addition to simply saving a dollar here & there. Several of these benefits include:
An excitement for frugality – Anyone employing similar methods can vouch for the fact that once you begin practicing frugality in any way, it becomes exciting to see how much money you were blowing but now are able to save. Try incorporating frugality into your life when eating out. It may sound silly at first, but when you get that first restaurant bill after using the following methods you’ll understand just how exciting it can become.
A renewed sense of excitement about dining out – Before attempting to cut back on the frequency of dining out, my wife & I found that we just were not enjoying it like we used to. Once we stopped going out to eat three to five times per week, we rekindled our love with the restaurant experience.
Less of a “nit pick” – When you go out to eat a lot, and you spend a lot, you expect a lot. Thinking back to our experiences prior to our newly adopted frugal lifestyle, my wife & I spent most of our time complaining about what was wrong with this & that instead of focusing on the benefits of the experience itself. Now that we dine out less often, and are very conscious of the entire process, we are more appreciative and patient patrons.
These benefits did not take a long time to be realized. We noticed the first time we began using these techniques we had a much greater joy & improved attitude regarding our restaurant experience. I am absolutely sure you will have the same opinion, so let’s move on and get into the meat of this article. Some of these tips are written to help you eat out less; while most of them will help you cut down on your costs when you do dine out.
Reconsider – Shouldn’t You Just Eat At Home?
This should be your first line of defense when tempted to eat out. My wife & I used this advice just last Friday and saved ourselves between $20 – 40. We decided to stay home and ended up cooking up a nice sized portion of chicken pasta that lasted us for 3 days! We try to limit our dining out to special occasions, and maybe one “just because” night out per month.
Use Coupons To Decide Destination
Having trouble deciding where to go? Visit Restaurant.com and see if they offer any discounts in your area. A lot of times you can buy gift certificates worth $25 for only $10. Keep in mind that most times you cannot use the coupons for alcohol, tip, or in combination with other offers. Also check out if there is an Entertainment Book put together for your area. These books cost a minimal amount, and if used properly can yield savings many times their cost. Let your coupons determine where you will eat. This can actually make it more exciting as you may get to try a place you have never been before, and may have never visited if it were not for your coupon!
Set Spending Limits
Use a ceiling amount you allow yourself to spend and do not surpass it. This can also make the experience more fun as you try all kinds of new menu combinations to try & stay within your budget. It can become a competition to see who can get the best meal yet spend the least.
Order “To Go” If Possible
When ordering “to go” you will not have to buy drinks or desserts, you will not have to face the dreaded “upsell” (see below), and you will not be expected to pay gratuity. All of this will work together to keep your money where it belongs…in your pocket. Although this scenario does not give you the whole “dining out” experience it will offer you a break from cooking & cleaning up at home.
No Upsells!
In restaurant lingo, an “upsell” is anything the server or restaurant staff will offer you in addition to your meal. Normally as soon as you sit down they will not only ask what you would like to drink, they will suggest some expensive mixed drinks, or something of the like. Instead of ordering a soda, coffee, tea, juice, milk, bottled water, or any other type of drink…simply order a glass of tap water. Betsy & I notice that most restaurants are charging between $1.75 and $2.25 for these beverages.
After drinks, they will most likely try to upsell you with an appetizer. While ordering they will want you to get extra “add-on” items like mushrooms and onions on your steak. After your meal you will be asked if you would like any dessert…and maybe even some coffee to go with it! Although these things sound good, you can imagine how much it will end up costing over the course of one meal. Aside from staying home to eat, this may be the single best way to avoid high dining bills. Just stick to the entrees and whatever comes with them that is included in the price. Not only will this save your wallet, it will also save your waistline!
Order Frugally
Instead of the Alaskan king crab & 1lb Maine lobster tail meal, order a nice healthy stir fry or a chicken pasta dish. Remember that you have a spending limit that you set for yourself in step 3 that you must adhere to. If you do order an expensive meal, try to wait for a special occasion, use a coupon, or wait until the restaurant is running a special on the dish.
Split Extras – If You MUST Have Extras…
If you just have to have an appetizer or a dessert, try to split with the other diners in your party. Better yet, why don’t you just wait until you have a coupon for a free appetizer or dessert? Also, keep in mind that a lot of restaurants have free appetizers at different times during the day, so if you must have that Bloomin’ Onion, go during happy hour!
Order Off Kids Menu
My wife has been known to order off the kids menu at different times. Although she does not do this often, some may find that a child’s portion is more than enough for them. The child meals are always much cheaper than the adult size meals.
Order Off Senior Menu
Similar to the children’s menu, many restaurants have a seniors menu. Although all may not let you order off it unless you are indeed a senior, it never hurts to ask. A lot of times in life we miss opportunities because we simply fail to ask! Also like the children’s menu, the seniors menu has prices that are reduced with smaller portions. If both of these options fail attempt to ask the waitperson if you can order a half portion or a lunch sized portion. Again, it never hurts to ask.
Split Meals
This is one of my all time favorites! I always feel like I’m pulling one over on the restaurant when my wife & I order one meal to share. We ALWAYS end up well fed, satisfied, and happy with the fact that we just cut our dining bill in half! For Valentine’s Day this past year we visited one of our favorite restaurants, ordered & split their monthly international five course meal, and got out of there for just over $20…on Valentine’s Day!
Eat Half – Save Half
This is a phrase I coined that simply means to purposely eat only half your meal with the full intention of taking the other half home. My wife & I use this trick when we cannot decide on a meal to split. We simply order separate meals, eat half, and then take the other half home to have as leftovers for the next day. This way we get 4 meals for the price of two. It also helps us to not overeat when we have a huge portion of restaurant food in front of our faces…once again helping the waistline & the pocketbook!
Using these tips, tricks, & money saving methods my wife & I have been able to reduce our monthly budget for dining out from $450/month down to less than $100/month. That is a savings of over $4,000 annually, and is now being direct deposited into our savings account.
If we submit ourselves to God, and are faithful in the little things, according to His Word God will in turn bless us with much. Let me bring to your attention the parable of the noblemen and his servants in Luke chapter 19:
“He said therefore, A certain nobleman went into a far country to receive for himself a kingdom, and to return. And he called his ten servants, and delivered them ten pounds, and said unto them, Occupy till I come. But his citizens hated him, and sent a message after him, saying, We will not have this [man] to reign over us. And it came to pass, that when he was returned, having received the kingdom, then he commanded these servants to be called unto him, to whom he had given the money, that he might know how much every man had gained by trading. Then came the first, saying, Lord, thy pound hath gained ten pounds. And he said unto him, Well, thou good servant: because thou hast been faithful in a very little, have thou authority over ten cities. And the second came, saying, Lord, thy pound hath gained five pounds. And he said likewise to him, Be thou also over five cities. And another came, saying, Lord, behold, [here is] thy pound, which I have kept laid up in a napkin: For I feared thee, because thou art an austere man: thou takest up that thou layedst not down, and reapest that thou didst not sow. And he saith unto him, Out of thine own mouth will I judge thee, [thou] wicked servant. Thou knewest that I was an austere man, taking up that I laid not down, and reaping that I did not sow: Wherefore then gavest not thou my money into the bank, that at my coming I might have required mine own with usury? And he said unto them that stood by, Take from him the pound, and give [it] to him that hath ten pounds. (And they said unto him, Lord, he hath ten pounds.) For I say unto you, That unto every one which hath shall be given; and from him that hath not, even that he hath shall be taken away from him. But those mine enemies, which would not that I should reign over them, bring hither, and slay [them] before me.” Luke 19:12-27
Though it may seem silly, we need to be faithful in all areas of our lives, even going out to eat. The Lord will see your efforts and will bless them according to His Will. Praise the Lord!
I am including both a .pdf & .png version of my Frugal Dining Reference Card with this post. Please download this card, shrink it to whatever size you would like, and store it in your purse or wallet for quick reference use when dining out.
Download “Frugal Dining Reference Card”
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This post was written by Matt Jabs. Check out his sites Debt Free Adventure or DIY Natural for more frugality and healthy eating tips.
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I strongly believe that real estate is one of the best ways to achieve wealth. Rental properties, in particular, are an awesome way to build net worth and create passive income.
I own a real estate brokerage, have been an agent for 17 years, and flip houses as well. My strategy is to make as much money as I can by selling houses as an agent or flipping houses and investing that money into rentals. Real estate has made me quite a bit more than a millionaire and anyone with a work ethic can do it. If you become a millionaire, it may not mean what it once did thanks to inflation and the cost of living. However, being a millionaire is still a big deal, and only 5 percent of American households have a net worth of one million dollars or more.
Why is real estate a great way to become a millionaire?
Real estate is one of the best ways to build wealth with or without a lot of money. I am not saying you don’t need any money or that it is easy, but it is possible. One of the main reasons real estate is a great vehicle for wealth is the ability to use leverage. Leverage is basically using loans or other people’s money. You can get loans relatively easy on real estate because it is a hard asset. The more money you have the easier it is to make money in real estate. While it is possible to get started with nothing or next to nothing, it is much easier if you have money to invest.
While you can borrow money to invest in other businesses, it is usually not as easy as it is to borrow against real estate. Banks love to lend on houses and commercial properties because they have an asset backing the loan. If banks lend on stocks or businesses and they go under the bank has nothing. If they loan against a house and the borrower can’t make payments the bank can take the house.
Because banks like to lend on real estate you can get some of the best loan terms available. Real estate also has amazing tax advantages that are not available with other investments. You can buy and sell a primary house, make $200,000 and pay zero taxes on that profit in certain scenarios. Not tax-deferred, no tax at all, ever. You can also force appreciation with real estate; you do not have wait for it to go up in value. I flipped 26 houses last year and all of them I bought for much less than they were actually worth. You can also make improvements to a property to increase the value. All of this can occur while you are making money on it every month after paying expenses including the mortgage.
It is also possible to take money out of your real estate investments by refinancing properties. You can use that money to buy more and more properties. This is what I have done in my career and one of my only regrets is that I did not start sooner!
Is a primary house an investment?
I want to start with the question of whether a primary residence is an investment. Many people talk about how it is dumb to buy a house and smart investors rent. I disagree. I think a primary residence can build a lot of wealth. I have increased my net worth buying and selling houses that I lived in over and over.
I bought my first house when I was 22 years old. I paid $190,000 for the house, which was full retail value for it. I lived there for 7 years and spent at least $10,000 on materials to remodel the home. That money does not count the time I personally spent updating bathrooms, painting, installing fixtures and fixing many other small things. I sold the house for $180,000 after doing all that work! It did not help that the market dropped, but I could have done much better if I would have been patient and waited for an awesome deal. Not every personal house is a great investment but I also did not have to pay rent, I was not forced to move when the landlord decided he wanted to sell, I could have pets, and I could change the houses however I saw fit. I did much better financially with my second house.
I bought my second house from the foreclosure sale for $215,000 in 2009, put less money into it for repairs, and sold it for $343,000 three years later. I bought the house with money I borrowed from my sister and father in law because I had to pay cash at the foreclosure sale. I was able to refinance all of that money out with a conventional bank a couple of months later. The awesome part about making so much money on that house was that it was tax-free. When you live in a house for 2 out of the last 5 years the money you make is usually tax-free! I sold the house to my friend so I had no real estate commissions to pay. We spent less than $10,000 on the house while we owned it and we did not even have to change the carpet.
I took the money I made from that house and used it for a down payment on a house I purchased for $560,000 in 2013. I have owned that house since and it is worth more than $850,000 now. I was lucky that our market has taken off, but I also focus on getting great deals on all the houses I buy. My loan on my personal house is less than $400,000, which means I have created $450,000 in net worth through my personal residences. that money is tax-free if I ever decide to sell the house I am in now. They limit your tax-free gain to $250,000 for an individual or $500,000 for a couple. I can also get a line of credit or refinance the house to pull money out tax-free and use it to invest.
I have not become a millionaire through these houses, but they have definitely helped to grow my net worth. When you buy a house as an owner occupant you can put very little money down. Because you are putting little money into the deal, the returns can huge if you got a great deal or values increase. If you do not have a lot of money to invest in rental properties, buying a personal residence is a great way to start. When you gain equity in the house or buy below market value, you can get a line of credit, pull any money you invested out plus some and use that money to invest. I bought my first rental property by refinancing the second primary house I had.
Why are rentals a great source of wealth?
The biggest increase to my net worth came from rental properties. I always buy properties below market value, which creates instant equity. When I buy a rental property for $120,000, it may be worth $160,000 or more after spending $15,000 to fix it up. When I buy that property and fix it up, I add $25,000 to my net worth. I have 20 rental properties now and all of them have added money to my net worth in multiple ways:
Buy below market value
You can buy below market value in many different ways. You do not have to be a professional investor to do it. There are deals on the MLS, on auctions, and even on Facebook! Buying below market value allows investors to use the BRRRR strategy which in turn can get you into rentals with very little money. Every house I buy adds $20,000 to $50,000 to my net worth because of the great deals I get.
Appreciation
I never count on appreciation but it is a nice bonus. I buy rentals that will make money today without prices increasing. However, my rentals have seen huge increases in prices. I started buying rentals in 2010 and spent about $1.3 million on 13 residential properties ( I also have commercial). Those rentals are worth over $3 million dollars today. Part of that is appreciation and part of it buying below market. The cool part is I spent very little money buying them after refinancing a few.
Cash flow
My rentals make me about $12,000 a month in passive income every month. I have property management who takes care of them for me and it takes very little work once I buy and renovate the property if needed. That money will keep coming in as long as I own the properties and will increase over time as rents go up with inflation. I love rentals because of the steady money they bring in.
Equity pay down
I have mortgages on all of my properties and my tenants are slowly paying them off for me. Every month my net worth increases because the mortgage balances on my properties decrease. This is on top of the cash flow I make every month.
All of these factors have increased my net worth directly or given me more cash, which allowed me to invest in more properties and add to my net worth. Rentals did not make me a millionaire overnight, but they have been an awesome investment and made me a millionaire a few years after I started buying them. Making a lot of income is great, but people can make hundreds of thousands of dollars a year with nothing to show for it if they spend it all.
How can you make money flipping houses?
One way I make a high income is by flipping houses. I flipped 93 houses in the last five years but started doing one or two a year with my father many years ago. Flipping houses is not as glamorous as they make it out to be on TV, but it can be a lot of fun as well as lucrative. I typically buy a house for $150,000 to $250,000, spend $20,000 to $50,000 fixing it up, spend another $20,000 to $30,000 on other costs, and sell for $250,000 to $350,000. We try to make $30,000 on each flip we do. Sometimes we do and sometimes we don’t.
I have used the money I make from flipping to buy more rentals and buy more and more flips every year. I would love to have more rentals but it is actually harder to find good rentals than good flips!
Below is a video of one of my flips.
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How much money can you make being a real estate agent?
I have also made very good money being a real estate agent. I use to be an REO and HUD broker which meant I sold foreclosures for banks. I had multiple years that I made well over $100,000 a year after expenses from being an agent. I now own my own real estate brokerage but focus on the flips more than selling houses.
Not only is being an agent a great way to earn income that you can invest, but it is a game changer for my flipping and rental property businesses. I am able to find more deals and pay less in commissions because I am an agent.
How long did it take me to accumulate one million dollars in net worth?
I bought my first rental property at the end of 2010 when I figure my net worth was about $180,000. I had been a real estate agent for 8 years, and flipping houses with my father for many years, but had not accumulated a huge amount of money. I invested money in the stock market, but most of my net worth was in my personal house.
I hit one million dollars in net worth in 2013. At the time I had seven rental properties, which had contributed greatly to my net worth. Not only did buying below market value, and appreciation increase my net worth, but I was saving as much money as I could to buy rentals. I put 20 or 25 percent down on each property and made repairs to most of them. Here is what a typical rental looked like:
Buy for $100,000
Put down $20,000
Spend $15,000 on repairs
When I was done the house was worth $150,000 to $160,000
After buying and fixing up the rental I had a house that was worth $160,000 with a loan that was $80,000. After a couple of years that house increased to $180,000 in value and my loan balance decreased to about $77,000. For each of my rentals, I gained $100,000 or more of net worth after a few years of ownership. On some of my houses, I built much more net worth because I got really great deals on the property. That does not count the cash flow I earned each month, which was about $500 per month, per property.
Some of my net worth was from my personal residence and other investments, but most of it was from rentals. It took me about four years to accumulate a net worth of one million dollars from just rentals. While it took cash to buy those properties, it forced me to save money as well. I know I would not have saved as much had I not been buying rentals.
What if you don’t make a lot of money?
My story may not be relative to many people. I have a successful real estate sales team, a successful fix and flipping business, and a blog that makes money as well. I have had extra money to invest in rentals to increase my net worth. Even if you don’t have a lot of cash to invest, you can buy real estate. You can buy houses with little money down as an owner occupant, and with many other strategies. You could turn owner-occupied houses into rentals or sell them, collect tax-free profits, and re-invest it into more properties.
You may not be able to buy as many rentals as I did as fast, but you can definitely start building wealth. How fast it takes you to reach one million dollars in net worth depends on many factors like:
How much cash you have to invest
How good of a deal you get
How many houses you buy
How fast your market appreciates or possibly depreciates
What strategies you use you to accelerate growth like refinancing, house hacking, or the BRRRR method.
Conclusion
It is possible to build a net worth of one million dollars in a couple of years with real estate. It also may take five years, ten years, or even fifteen years. Only five percent of households are millionaires so even if it takes a while you will be ahead of the pack. It may be tough to get your first property, but the more you buy the easier it gets and the more money you will make.
If you’re struggling to save enough for a home down payment, a 401(k) loan might look like a quick and easy solution, especially if you have more money stashed in that account than anywhere else.
Among Americans with retirement accounts, including 401(k)s, the median account value was $65,000, according to the Federal Reserve’s Survey of Consumer Finances, based on the most recently available 2019 data. The median value of transaction accounts, such as savings, checking and money market accounts, was $5,300.
Many employer plans allow 401(k) loans, and the upsides can be attractive: Essentially, you’re borrowing from and paying interest to yourself. The loan generally doesn’t count as debt when lenders calculate your debt-to-income ratio.
But borrowing from retirement savings has downsides, and some financial planners advise against it, period.
“I generally hate the idea of people borrowing from a 401(k) to purchase a home, given the possible risks,” says JP Geisbauer, a certified financial planner and principal of Centerpoint Financial Management in Irvine, California.
Yet Nathaniel Moore, a certified financial planner and president of Agape Planning Partners in Fresno, California, says he understands why someone would be tempted. “If it means going from paying high rent to getting into a place you own, I get it,” he says.
Here’s what to consider if you’re thinking about it.
Rules for borrowing
Most 401(k) plans permit loans, but federal law doesn’t require them to. Log on to the website where you track your 401(k) to find loan information or contact your employer’s human resources department or plan administrator.
Some loan terms vary among employer plans, but all plans must abide by federal rules:
Loans are capped at $50,000 or 50% of the vested account balance, whichever is less — or up to $10,000 if 50% of the vested balance is less than $10,000. If your balance is $200,000, you may be able to borrow up to $50,000. If your vested balance is $70,000, the maximum loan amount would be $35,000.
You have a set amount of time to repay the loan plus interest; otherwise, it will be considered a distribution or withdrawal. You’d pay income tax on a distribution and, if you’re younger than 59 1/2, an additional 10% tax penalty. The plan sets the interest rate, typically 1% or 2% above the prime rate.
Generally, 401(k) loans must be repaid in five years, but a plan can give more time to repay a loan for purchasing a primary home. Payments must be made at least quarterly over the loan term.
If you get fired or quit your job, the plan can require you to repay the full outstanding loan balance. If you can’t pay, the unpaid amount will be subject to taxes and, if you’re under 59 1/2, the 10% tax penalty. You can avoid the tax implications by rolling over the outstanding balance to an IRA or another eligible plan by the next annual federal tax filing deadline. About 4 in 10 Vanguard plans allowed participants to continue repaying loans after leaving their jobs in 2021, according to a 2022 Vanguard report.
Risks of using a 401(k) loan
Even if you’re convinced a 401(k) loan is the way to go, it’s important to understand the risks at the outset.
One is the potential tax burden if you can’t make the quarterly loan payments or leave your job and can’t repay the outstanding balance on time.
You could also fall behind on saving for retirement. Besides losing potential investment gains on the borrowed money, the loan repayments could crimp your ability to contribute to your 401(k). In fact, some plans don’t allow employees to make regular contributions until the loan is paid off, says AnnaMarie Mock, a certified financial planner with Highland Financial Advisors in Wayne, New Jersey. Pausing contributions would be especially costly if you missed out on matching contributions from your employer.
But there’s another less-obvious risk, which Moore finds particularly troubling: Once you’ve taken one loan, it gets easier to tap into it again. “You’re reprogramming your mindset to where now the 401(k), which was designed to be protected and provide income in the future, is accessible,” he says.
Loan costs, repayment and alternatives
Take these steps if you’re thinking about borrowing from your 401(k):
Check your plan’s rules for 401(k) loans
Get details about the interest rate, fees, payment amounts and how long you’d have to repay the loan.
Calculate whether you can afford loan payments
Tally the loan payments along with other obligations.
“That 401(k) loan is going to get taken out of your salary right from the start, so make sure that with the new home expenses, your lifestyle expenses and saving, you’re not operating at a deficit each month,” Mock says. If the loan payments are unaffordable, she says, “the only other place where you’re going to be able to support that lifestyle would be from credit card debt, which is very expensive.”
Learn what happens if you leave your job
If the plan requires paying the outstanding balance in short order — as most plans do — strategize how to repay that sum to avoid tax consequences.
Consider alternatives
Finally, check out other options to help buy a house, such as low-down-payment mortgages and your state’s first-time home buyer programs, Mock advises. Perhaps one of those could eliminate the need for a 401(k) loan.
Some conventional loans have down payments as low as 3%. FHA loans, insured by the Federal Housing Administration, have down payments as low as 3.5%. And if you’re a service member or veteran, you may qualify for a zero-down-payment VA loan backed by the U.S. Department of Veterans Affairs. USDA loans for rural home buyers also don’t require down payments.
Still want a 401(k) loan?
Moore offers these tips:
Take only what you need, which may be less than the maximum you can borrow.
Be aggressive with repayment. Just because you have a certain number of years to repay the loan doesn’t mean you have to use all that time. “Try to pay it back as fast as possible.”
Beware of the tendency to borrow again. “You don’t want to get in the habit of looking at your 401(k) like a piggy bank.”
An impressive number of online banks offer relatively high yields on savings accounts, money market accounts, and even checking accounts. Yes, even when interest rates are low.
And everyone needs a checking account. Why not choose one with a yield that rivals the best high-yield savings accounts?
Best High-Yield Checking Accounts
Many of these high-yield checking accounts are on our roundups of the best free checking accounts and best checking accounts with monthly maintenance fees. If you hate monthly service fees, know that most banks happily waive those fees when you meet minimum balance or monthly transaction requirements.
Wealthfront Cash Account
Our Rating
The Wealthfront Cash Account earns 4.30% APY on all balances — one of the best cash account yields on the market. It links seamlessly with Wealthfront’s other core product, a low-cost robo-advisor.
Account APY
Minimum Balance
Monthly Fee
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Wealthfront pairs a low-cost investment management solution with an excellent high-yield checking account, the Cash Account.
The Wealthfront Cash Account has a virtually nonexistent minimum opening deposit, high yields on all balances, no account fees, and a great lineup of value-added features, including Self-Driving Money™.
Self-Driving Money™ is a powerful money management automation tool that effortlessly allocates deposits among near-term expenses, variable-term savings goals, and longer-term investment objectives, all while making sure your emergency fund is topped up and you’ve got enough left over to enjoy life.
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Aspiration Spend & Save
Our Rating
Get up to 3.00% APY on the first $10,000 in your account and earn up to 10% back on purchases with select Aspiration partners.
Account APY
Up to 3.00% APY on the first $10,000
Minimum Balance
Monthly Fee
$0 for a standard account, $7.99 for Aspiration Plus
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Aspiration Spend & Save is two accounts in one:
Aspiration Debit, a rewards checking account that pays up to 10% back on eligible purchases with Conscience Coalition partners, companies that have committed to helping the planet (and caring more about their bottom line in the process).
Aspiration Save, a high-yield savings account that links seamlessly to Aspiration Debit and earns up to 3.00% APY on the first $10,000 in the account.
You need to pay $7.99 per month for an Aspiration Plus membership to earn 10% back and 3.00% APY. Otherwise, cash back maxes out at 5% and your yield is 1.00% APY on the first $10,000.
The Aspiration Save Account’s up to 3.00% Annual Percentage Yield (“APY”) is variable, subject to change, and only available to customers enrolled in Aspiration Plus after conditions are met. Customers not enrolled in Aspiration Plus receive 1.00% APY after conditions are met. The Aspiration Spend & Save Accounts are cash management accounts offered through Aspiration Financial, LLC, a registered broker-dealer, Member FINRA/SIPC, and a subsidiary of Aspiration Partners, Inc. (“Aspiration”). Aspiration is not a bank.
Go2Bank
Our Rating
Earn up to 7% cash back when you buy eGift cards in the app. Plus, earn 4.50% APY paid quarterly on savings balances up to $5,000.
Account APY
Minimum Balance
Monthly Fee
$5, waived with direct deposit
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GO2Bank combines a rewards checking account and a high-yield savings account into one package. The savings side has an impressive yield on the first $5,000 (4.50% APY), while the checking side pays up to 7% cash back on eligible electronic gift card purchases (GO2Bank calls them “eGift cards”) made in the app.
GO2Bank does have a monthly maintenance fee, but it’s waived with any qualifying direct deposit. Another highlight: the option to deposit cash at more than 90,000 retail locations nationwide.
Active GO2Bank account required to receive an eGift Card. eGift Card merchants subject to change
GO2Bank, Member FDIC. Interest paid quarterly on the average daily balance of savings during the quarter up to a $5,000 balance and if the account is in good standing. 4.50% Annual Percentage Yield (APY) as of April 2023. APY may change before or after you open an account. The average national savings account interest rate of 0.05% is determined by the FDIC as of 12/14/20. Visit https://www.fdic.gov/regulations/resources/rates/ to learn more. Fees on your primary deposit account may reduce earnings on your savings account.
Direct deposit early availability depends on timing of payor’s payment instructions and fraud prevention restrictions may apply. As such, the availability or timing of early direct deposit may vary from pay period to pay period. The name and Social Security number on file with your employer or benefits provider must match your GO2Bank account exactly or we will decline your deposit.
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Signature Federal Credit Union might not be as well-known as banking giants like Citi and Chase, but its high-yield checking account is definitely worth going out on a limb for.
Meet the qualifying activity requirements each month and you can earn 4.00% APY on balances up to $20,000. That’s many times higher than the national checking account average.
To qualify for the advertised yield in any given statement cycle, do all of the following:
Receive a direct deposits totaling $1,000 or more.
Enroll in electronic statements.
Use your debit card to make at least 15 eligible purchases online or in person.
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M1 Spend
Our Rating
Earn 3.30% APY with no minimum balance when you upgrade to M1 Plus. Additional benefits include 1% cash back on debit purchases and up to 10% back on credit card purchases.
Account APY
Minimum Balance
Monthly Fee
$125 per year to earn interest (after year one)
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M1 Spend is a free cash management account from M1 Finance, a digital banking, investing, and lending platform. But if you want to earn interest on your M1 Spend balances, you need to upgrade to M1 Plus, which costs $125 after the first year.
It’s worth upgrading. In addition to 3.30% APY on all M1 Spend balances, M1 Plus gets you 1% cash back on debit card purchases and up to four ATM fee reimbursements each month. And that’s just on the checking side — M1 Plus comes with investing and borrowing benefits too.
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Quontic High Interest Checking
Our Rating
Earn 1.10% APY on eligible balances when you make at least 10 qualifying transactions in a statement period. Plus, enjoy fee-free access to more than 90,000 ATMs across multiple networks in the United States.
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Monthly Fee
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Quontic High Interest Checking is a free checking account with an attractive yield for anyone able to clear the relatively low qualifying activity bar: making 10 or more qualifying debit card point-of-sale transactions valued at $10 or more within the statement cycle. Do this and you’ll earn 1.10% APY on all balances.
Note that Quontic used to limit interest payments to the first $150,000 in the account. This restriction has been void for a while, but there’s always the chance it could come back.
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Nationwide Advantage Checking
Our Rating
Earn up to 0.90% APY with qualifying activities — $1,000 or more in total direct deposits and at least 10 transactions per month.
Account APY
Up to 0.90% APY
Minimum Balance
Monthly Fee
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Nationwide Advantage Checking has much in common with other interest checking accounts, albeit with a slightly less generous upper yield tier than some.
In any given month, complete qualifying direct deposits (at least $1,000 total) and transaction requirements (at least 10 of $3 or more) to earn 0.90% APY (variable with prevailing rates). Do one or the other to earn half the advertised yield — and enjoy no monthly maintenance fees and expansive ATM network access even if you can’t do either.
One catch: The debit card transactions must occur in-person to qualify. So early in the month, focus on those types of transactions rather than online purchases until you clear 10.
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Methodology: How We Select the Best High-Yield Checking Accounts
We evaluated dozens of checking accounts to build this list. We considered several key variables along the way. The accounts that made the final cut scored well on most or all of them.
Account Yield (Interest Rate)
Remember, these are high-yield checking accounts we’re talking about. Yield is a key selling point for the banks marketing them, which is why it’s the most important factor in our analysis.
Monthly Fee & Waiver Options
The best high-yield checking accounts are either truly free, meaning they don’t charge monthly fees under any circumstances. Unfortunately, truly free checking accounts aren’t as common as they used to be, so we make exceptions for accounts that make it easy to get monthly fees waived with a qualifying direct deposit or clearing a reasonable minimum balance.
Bonuses and Rewards
The best high-yield checking accounts tend to offer sign-up bonuses for new account holders, rewards programs that pay you back for eligible purchases, or both. It’s not a deal-breaker when high-yield checking accounts lack these features, but all else being equal, we prefer that they do.
Balance Requirements & Limits
We believe you shouldn’t have to save up a fortune to benefit from a high-yield checking account. Most of the accounts on this list have no minimum balance or very low minimum balances. A few do have maximum balances to earn interest, but those are high enough not to impact most users.
ATM Access
Cash is less and less common these days, but ATM access is still important for many checking account users. And we believe you shouldn’t have to pay a fee to get your money. This is why, all else being equal, we prefer high-yield checking accounts with big fee-free ATM networks.
Geographic Availability
Some high-yield checking accounts have geographic restrictions, either because you have to open them in a branch or the banks offering them simply don’t operate in certain states. We exclude accounts with strict geographic restrictions and prefer 50-state coverage when possible.
High-Yield Checking FAQs
Choosing a checking account isn’t as simple as it sounds. You’ll almost certainly have some questions as you get into it, so we’ve preemptively answered some of the most important.
How Much Interest Do High-Yield Checking Accounts Pay?
It depends on the bank’s policy and prevailing interest rates. However, a good rule of thumb is that the best high-yield checking accounts pay interest on par with the top high-yield savings accounts.
Are There Any Requirements to Earn Interest?
Some high-yield checking accounts attach no strings at all to interest payments, but many do. The most common requirements include:
Setting up and maintaining a qualifying direct deposit
Meeting a monthly transaction minimum
Meeting a monthly or daily minimum balance
What’s the Maximum Balance to Earn Interest?
Many high-yield checking accounts pay interest on all balances, which is ideal if you keep a big financial buffer in your checking account. Others cap interest payments though. Usually, the cap is relatively high — $5,000 or more.
How Much Do High-Yield Checking Accounts Cost?
Ideally, nothing. And the best high-yield checking accounts are indeed free checking accounts. For accounts that do charge a monthly maintenance fee, we prefer easy waiver options, such as any direct deposit or a low minimum balance ($500 or below).
Are High-Yield Checking Accounts Actually Savings Accounts?
Sometimes. The line between checking and savings is blurrier these days because many banks and financial technology apps package checking and savings products into the same digital interface. Several of the accounts on this list are package deals.
Final Word
Like mortgage rates and CD yields, checking account yields rise and fall as benchmark interest rates change.
During periods of economic uncertainty, when benchmark rates tend to be more volatile, these changes can occur with disorienting frequency. The yield you expect on that shiny new online checking account might not be the yield you actually receive.
The silver lining is that competition for new checking account customers remains fierce, especially among online banks and smaller brick-and-mortar institutions without household name status.
That means checking account yields will continue to entice new account holders, wherever interest rates go and irrespective of what happens on the savings account front.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
By Peter Anderson16 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited February 10, 2014.
Our family has been out of debt for a while now, and one of the first things we did after dumping all of our debt was to increase our $1000 emergency fund to better be able to cover us in case of larger emergencies, not just small emergencies.
First we built up a 6 month reserve in our savings account. After we had built up 6 months in reserve, the economy had already tanked and my wife had quit her job to become a stay at home mom, so we decided that we’d like to bump up our reserves to cover 12 months of expenses instead.
We’ve now saved up that 12 month emergency fund, and we feel pretty secure should I lose my job or have another major health issue. One thing that we have thought about, however, is if we should invest a portion of our emergency fund?
Where Emergency Funds Traditionally Go: Savings, Money Market
When you read up on the traditional advice on where to put your emergency savings you’ll get some very conservative answers, usually ranging from a liquid checking, savings or money market account. Some will say to keep a small emergency fund of $1000 or more in your local checking. Next keep the rest of your emergency fund in a savings account earning the best interest that you can get. In this interest rate environment that is typically no more than 1% or so. Not much to write home about.
We’re currently using this strategy with $1000 in a local checking account, and then the rest of our 12 month emergency fund in an Ally Bank savings account. The money in that account is earning less than 1% right now.
CDs Or A CD Ladder
Some people suggest taking a different strategy where you keep a few months of savings in your local checking and online savings accounts (like 3 months), and then putting the rest of it in a CD Ladder where you’re earning a bit more on the money, while still leaving the money available within a few months if you really need it after your 3 months of savings in your liquid accounts. Another idea is to put the money in CDs that have smaller penalties for withdrawing early – in case you need to. For example, Ally has a 2 month interest penalty for early withdrawal, while others can have penalties upwards of 6 months interest. Be sure to check.
Investing In The Stock Market
Some people think that investing in the stock market with a portion of your emergency fund can be a good plan. Just make sure that you do have enough liquid funds (like 3-6 months) you can access right away, and then invest the rest, with the assumption that you could lose some of that principal.
One of the best options that I’ve heard of is to use your Roth IRA as a place to put some of your emergency fund. Since you can withdraw your contributions without penalty with a Roth, that can be a legitimate option for emergencies that crop up that won’t create unnecessary penalties or tax burdens.
Investing in a more liquid stock investment like Betterment.com or through another brokerage account where you can withdraw your money at any time can also be an option. Just remember that you could be forced to sell at a time when the market is down cementing losses, or creating taxable earnings.
I think the biggest thing you have to contend with here is the risk that is inherent in the stock market, where you could in fact lose a large portion of your money at any time. So is that really something you want to do with emergency funds that you really want to be there and be liquid?
Investing In Lending Club
Another place that I’ve heard of some people investing a portion of their long term emergency cash is at Lending Club.
Typically Lending Club investors can get somewhere in the neighborhood of 9-12% returns depending on how much risk they take on. While the returns can be pretty good, the funds you’re putting with Lending Club are typically going to be in 3-5 year loans, so the money isn’t terribly liquid if you need the money right away. You can always sell the notes on the secondary market, but you may end up losing quite a bit that way. You also have the risk of borrowers defaulting on their loans, although you can pretty well diversify your risks with Lending Club.
If I were to head down this road, it would only be with long term emergency funds, and not money I would need right away.
Our Current Strategy
I am by nature pretty conservative when it comes to our emergency funds, and I currently keep all of it liquid in either a checking or savings account, earning around .90% interest. While I’d like to be earning more interest on the money, I just like having that money there and available should we need it – and I think my wife also needs it even more than I do to have that sense of well being. If I were to put a big chunk of it in some sort of investment I don’t think she would have as much peace of mind.
Going forward I think we’ll continue our strategy, but if we build up and above the 12 months in savings, we may end up investing a portion of that somehow. I’m not sure how we’ll do that quite yet, but we’ll see.
What are you thoughts? Would you ever invest a portion of your emergency fund? Why or why not?
Many aspiring credit card users face a chicken-and-egg problem. You need a credit score, and a decent credit score in most cases, to qualify for most credit cards. But it’s hard to establish and build credit without a credit card.
The Petal® 2 “Cash Back, No Fees” Visa® Credit Cardoffers a way around that. It’s an unsecured cash-back credit card that doesn’t require a FICO score as a condition of approval. That means it’s an ideal first credit card for applicants who don’t want to tie up their money in a secured credit card.
The Petal 2 card isn’t right for everyone, though. Consider the whole package before you apply.
What Is the Petal 2 Card?
The Petal 2 “Cash Back, No Fees” Visa Credit Card is a rewards credit card designed for first-time credit card users and others who’ve had difficulty qualifying for unsecured credit cards in the recent past. If you’re new to credit or your credit history is limited enough that you don’t yet have a FICO score, you may still qualify for this card based on income and other noncredit factors.
Petal 2 has a straightforward cash-back rewards program that earns up to 1.5% back on everyday purchases and up to 10% back on purchases with select merchants. It has no annual fee and very few other fees.
Petal 2 does have a high regular APR and no 0% intro APR promotion, so it’s important to pay off purchases in full each month.
What Sets the Petal 2 Card Apart?
It should already be clear that Petal 2 is not your typical credit card. It stands out from most others in several key ways:
Doesn’t require a FICO score for approval. If you have a credit score, Petal considers it when you apply. But if you don’t, that’s not a deal-breaker. Petal simply uses noncredit factors to assess your application, like your income and employment status.
Up to 10% back on eligible purchases. Petal 2 caps cash-back earnings at 1.5% on most purchases, but it partners with select merchants (and more all the time) that offer 2% to as much as 10% back on eligible purchases.
Potential for a high credit limit. For an entry-level credit card, Petal 2 has an unusually high maximum credit limit — up to $10,000. Your specific credit limit depends on your income and employment status, but if you earn good money, you have a lot more leeway with this card than with most of its close competitors.
Regular cash-back earnings based on payment history. You earn 1% cash back on most purchases to start. As you build up a history of timely payments and responsible use, your regular cash-back rate increases to 1.5%. That’s a clear incentive to use this card wisely.
Is the Petal 2 Card Legit?
Yes, the Petal 2 Card is legitimate. Though most people aren’t familiar with the Petal name, Petal 2 is backed by WebBank, an FDIC-insured U.S. financial institution that has been in business for years. The card works like any other credit card backed by a U.S.-based bank.
Key Features of the Petal 2 Card
Petal 2 has a lot in common with other rewards credit cards: a cash-back program with rules it pays to learn, a credit limit based on users’ capacity to repay purchases, and a simple fee schedule. Its application standards throw some curveballs, but they’re easy enough to understand.
Cash-Back Rewards
Petal 2 earns 1% back on all eligible purchases. After 12 months of timely payments and responsible credit use, meaning you stay within your credit limit, the rate bumps up to 1.5%. There’s also bonus cash back on purchases with select participating merchants. The bonus rate ranges from 2% up to 10%, depending on the merchant. The lineup is always changing, but some very popular brands participate, including Costco and Adidas.
After each statement closing date, Petal automatically redeems your cash-back rewards to your connected bank account. You don’t have to initiate the redemption process.
Ongoing APR
From the day you open your account, all purchases you don’t pay off by the due date accrue interest at 17.74% to 31.74% (variable) APR. That’s a higher ongoing APR than most competing credit cards, so it’s even more important that you pay off your Petal balance in full each month.
Important Fees
Petal 2 has no annual fee, late fee, returned payment fee, or foreign transaction fee. Other fees may apply for specific actions like balance transfers, but there’s no ongoing cost to use this card.
Credit Limit & Increase
Petal 2 bases your initial credit limit on your credit score (if you have one) and your ability to pay your statement balance, which depends on your income. Initial limits range as high as $10,000, though most new cardholders get approved at much lower limits — a few hundred to a couple thousand dollars.
If your initial limit is low, Petal 2 offers a clear path to a higher credit limit through its Leap program. The deal is simple: You earn a credit line increase after six months of qualifying on-time payments.
Credit Required
Petal’s underwriting standards are relaxed. If you have a FICO score, you’ll likely qualify with a score as low as 600.
If you don’t have a FICO score, Petal doesn’t consider your credit history at all, instead using noncredit factors like income and employment status. The higher your income and the longer your employment history, the better your chances of qualifying without a credit score.
Advantages
Petal 2’s biggest advantages flow from its appeal to rookie applicants and its relatively generous rewards program. For example, it:
Requires no credit score to get approved. Petal 2 is one of the few unsecured credit cards that requires no credit score to get approved. In fact, all else being equal, it’s easier to qualify for this card if you have a steady job and no credit score than if you have a steady job and a very low credit score.
Requires no security deposit. As an unsecured credit card, Petal 2 requires no security deposit as a condition of account opening. If you’re still living paycheck to paycheck or close to it, this undoubtedly heightens Petal 2’s appeal.
Has potential for a high initial credit limit. Petal 2 is unusual among credit cards marketed to first-time users for offering high initial credit limits to qualified applicants. If your income and employment status allow, you could qualify for a credit limit as high as $10,000 right out of the gate with Petal 2.
No annual fee. Petal 2 has no annual fee. It costs nothing to keep this card in your wallet, no matter how infrequently you use it.
Up to 10% cash back with select merchants. Petal partners with select merchants to offer up to 10% cash back on Petal 2 purchases. Some partners are quite popular, among them Costco and Sam’s Club.
No late or returned payment fee. Petal 2 charges no fees for late or returned payments, though repeatedly missing or bouncing payments could lead to account closure.
No foreign transaction fees. Petal 2 charges no fees for international transactions. That’s good news for users who travel outside the United States regularly.
Disadvantages
Petal 2’s downsides include its high cost to carry balances and a lack of any promotions for new cardholders.
High ongoing APR. Petal 2’s variable APR (currently 17.74% to 31.74%) is higher than most competing cards. If you plan to carry a balance from month to month, look for a low-APR credit card instead.
No sign-up bonus. Petal 2 has no sign-up bonus for new cardholders. There are plenty of entry-level credit cards that do, so that’s a notable downside.
No 0% intro APR promotion. Petal 2 also has no 0% intro APR promotion for purchases or balance transfers. Combined with the high ongoing APR, that makes Petal 2 appropriate only for people who plan to pay off their balances every month, beginning in month one.
Low baseline cash-back rate. Petal 2’s baseline cash-back rate tops out at 1.5%, and only reaches that threshold after a year of responsible use. The Citi Double Cash Card, another no-annual-fee cash-back card, has a flat 2% return on spending.
How the Petal 2 Card Stacks Up
Your powers of deduction have no doubt led you to conclude that Petal 2 is not the only card in the Petal family. And you’re correct — there’s also a Petal 1, known officially as the Petal 1 “No Annual Fee” Visa Credit Card.
Petal 1 has a fair amount in common with Petal 2, and both are appropriate for people with limited credit histories. But they’re different enough to warrant a detailed head-to-head comparison.
Petal 1
Petal 2
Ongoing Rewards
None
Up to 1.5%
Bonus Rewards
Up to 10%
Up to 10%
Credit Limit
Up to $5,000
Up to $10,000
Annual Fee
$0
$0
Secured
No
No
Requires FICO Score
No
No
Final Word
The Petal 2 Card is one of the best entry-level cash-back credit cards on the market. Notable benefits include the opportunity to earn up to 10% back on select purchases, a nontraditional framework that requires no FICO score, and the potential for high initial credit limits.
Petal 2 isn’t perfect, though. It has no sign-up bonus or 0% intro APR promotion for new cardholders, mediocre-at-best 1.5% base cash back, and a high ongoing APR. If you’re looking for an above-average return on everyday spending or a generous incentive to make big purchases during your first months as a cardholder, you can do better elsewhere — if you can qualify for a more generous card. If not, Petal 2 is your stepping stone to get it.
The Verdict
Our rating
Petal® 2 “Cash Back, No Fees” Visa® Credit Card
Regular Cash-Back Rate: Up to 1.5%
Bonus Cash-Back Rate: 2% to 10% with participating merchants
Annual Fee: $0
Ongoing APR: 17.74% to 31.74% APR
Credit Needed: Limited credit is OK
Initial Credit Limit: Up to $10,000
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
By Contributing Author4 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited February 21, 2014.
This post is part one of a four-part series by SD Guy, the blogger behind Stretchydollar.com, a blog that focuses on the basics of personal finance and is geared towards those who don’t have much experience.
Family gatherings happen frequently at my grandparents’ house. My grandpa loves to host, and makes a big deal out of every meal whether there are two or 20 of us. My grandma is a great cook, and we’ve enjoyed many great meals there. Thanksgiving, Christmas, and many birthdays have been happily celebrated around their dining room table. My grandpa is famous for making sure that every last morsel of food gets eaten. He lives by the motto ‘waste not, want not’ and will often abandon his own meal and carry dishes of food around making sure we’ve all had our fill. His catch phrase is “ya wanna kill that?”
While it’s funny to watch my Grandpa push the food around and we’re always ensured of a full meal every time we visit their house, there is a valuable lesson that I’ve taken from my Grandpa’s habit.
Clean Your Plate!
It’s a simple idea, and one you’ve been hearing from your mother since the age of three, but it’s still true! If you’re throwing away food after meals, you’re basically throwing away cash. Correctly sizing your portions, only purchasing what you know you’ll eat, and saving leftover food will greatly expand your food budget. It takes a bit of practice (and some extra Tupperware containers) but learning to moderate your eating habits. You won’t need to purchase as much food, and any leftovers can conveniently become lunch for the next day.
Don’t Buy More Than You Need
With all the different advertising tricks grocery stores are using these days, it’s easy to get sucked into buying more food than you really need. If you spot a “Buy 3 for $5” deal for a product that is usually $4, you can get the same discount, even if you buy only one. There are quite a few food items my grandparents don’t buy unless they are having a party. Even then, my grandpa counts and recounts to ensure that he knows how many people are coming and plans accordingly.
If there are any leftovers after the meal, my grandpa packages them up on paper plates with tin foil and distributes them to everyone as they leave. He knows that he and my Grandma won’t eat it, so he wants to make sure that someone enjoys the food.
Easier Storage
If you only buy what you need, you can store food much more effectively. Knowing when food will expire and how much you have left of certain necessities will make meal preparation easier, and will also make it easier on you when you shop.
The Point: Moderating your food purchasing to just things you’ll use will help you plan and prepare meals, store your food, and manage your expenses quite a bit easier.
This post is part of the “Use It Up, Wear It Out, Make It Do, or Do Without“ Series