Listen to the entire interview on our podcast below by pressing the PLAY button.
Rutherford / Cannon County, TN – WGNS has an update from FEMA and the Small Business Administration about assistance that is available for home and business owners that suffered any damage caused by storms on March 31 and April 1, 2023.
ADVERTISEMENT
If you filed an application for assistance with FEMA to receive financial help, they’ll send a FEMA Home Inspector to your property. Media Relations Specialist Kim Keblish said to make sure you verify the inspector is with FEMA…
In addition to the low interest loan rate, there is a secondary perk to receiving an SBA loan. That perk comes in the form of a 12-month 0% interest deferment program. Adera explained…FEMA and / or SBA websites – or you can visit the Rutherford County Courthouse where SBA officials are temporarily stationed. The SBA has also set up an office in the same building as FEMA officials in Woodbury at the East Side Elementary School at 5658 McMinville HWY.
Again, to apply for FEMA assistance if damage was caused to your home during the storms that hit Rutherford and Cannon Counties on March 31, 2023 or April 1, 2023, you can visit the disaster recovery center in Cannon County. You can receive in-person support from a FEMA specialist or from a SBA specialist. The SBA officials can help you in-person at East Side Elementary School in Woodbury (5658 McMinville HWY in Woodbury.) They are open Mon. – Sat. From 7AM to 7PM and Sunday from 1PM to 7PM.
There is also a temporary disaster recovery center in Macon County, TN. It is at the 911Call Center (898 TB-52 Scenic Route in Laveyette, TN).Because it is a temporary center, it is only open now through Sunday, April 30th. On Friday or Saturday, it is open from 8AM to 7PM and on Sunday from 1PM to 4PM.
FRAUD: If you suspect fraud from someone impersonating a FEMA worker, call the FEMA Disaster Fraud Hotline at 866-720-5721. FEMA suggests, you should also contact local law enforcement.
Popular WGNS News Article Headlines:
More News from FEMA – Debris Removal: Debris removal from private property is the responsibility of property owners and is usually ineligible for reimbursement under FEMA’s Public Assistance Program. Sometimes, FEMA may determine that debris removal from private property is eligible for program funding. But there are factors that affect that decision. Those factors are based on the severity of the disaster and whether debris on private property is so widespread that it threatens public health and safety or the economic recovery of the community. In such cases, FEMA works with state and local governments to designate specific areas where debris removal from private property is eligible for funding. In those cases, debris removal must be in the public interest, not merely benefiting an individual or a limited group of individuals.
Removing debris can be a challenging job for residents, business owners and governments. Owners may remove debris themselves or get help from insurance settlements and/or assistance from citizen volunteers, the private sector and voluntary organizations. Often, local or state governments dispose of disaster-related debris that private property owners place at the curb for pickup on a scheduled date.
Tips for cleaning up debris on private property (Below)
Stay safe. Wear protective gear such as gloves and masks when handling debris. Contact your local emergency manager if your property is littered with storm-related debris that poses a threat to public health or safety and must be removed. Emergency managers know which government agency to contact about having hazardous debris removed. As you clear debris, look carefully for any visible cables. If you see any cables, wait for professionals to handle them.
Toxic substances. If you suspect the debris contains dangerous ingredients, seal them in plastic bags to prevent them from becoming airborne. Never burn debris; it can be toxic.
Contact your insurance company early to file a claim. Photograph/videotape the damage and debris and keep all receipts for the work performed.
Check with local officials before placing debris for collection to determine where and when pickups will be conducted.
Separate debris into six categories when disposing along the curb:
Electronics (such as televisions, computers, phones)
Large appliances (such as refrigerators, washers, dryers, stoves or dishwashers. Be sure to seal or secure the doors so they are not accessible)
Vegetative debris (such as tree branches, leaves or plants)
Construction debris (such as drywall, lumber, carpet or furniture)
Household garbage, discarded food, paper or packaging
Place debris away from trees, poles or structures including fire hydrants and meters.
Don’t block the roadway with debris.
For the latest information on Tennessee’s recovery from the severe storms, straight-line winds and tornadoes, visit FEMA.gov/Disaster/4701. You may also follow TN.gov/TEMA; Twitter.com/TEMA, Facebook.com/TNDisasterInfo, @FEMARegion4/Twitter and Facebook.com/FEMA.
Although inflation may be cooling, interest rates remain high. As a result, you may find yourself opting to rent rather than own, either by choice or by extenuating circumstances. The good news is that renters insurance is significantly cheaper than home insurance at around just $174 per year on average, according to the Insurance Information Institute (Triple-I). This is because renters insurance only provides coverage for the home’s contents along with the renter’s liability, rather than including coverage for the structure of the home. To help you identify which renters insurance company best meets your needs, Bankrate reviewed the largest renters insurance companies by market share based on a variety of key metrics.
Why renters insurance is important
Renters insurance is relatively inexpensive at around $15 per month on average, but its value can significantly outweigh its monthly cost in the event of a claim.
In addition to replacing your personal belongings, renters insurance also offers coverage for incidents that affect your guests. Perhaps a guest slips at your residence, sustaining an injury. In this case, renters insurance could help pay for their medical costs. If the injury results in legal action, renters insurance could also help pay legal fees. Insurers commonly offer coverage for relocation and food if your rental becomes temporarily uninhabitable due to a covered claim.
Add-ons are generally available for your renters insurance policy as well to help provide more robust coverage. For example, if you need extra coverage for your jewelry or other high-value items, you may be able to add additional coverage on top of your standard renters insurance.
Best renters insurance companies
Bankrate has researched more than a hundred companies offering renters insurance policies to narrow down some of the best renters insurance companies of 2023. The following companies have all been selected based on positive customer satisfaction ratings by J.D. Power, a leading third-party source for industry research, and have received “Excellent” or “Superior” credit ratings from AM Best. Having a positive rating from AM Best indicates that an insurance company has historically been able to meet ongoing financial obligations like operating costs and claims. Additionally, the companies below either include additional protections or offer them as add-ons for your renters policy, such as pet insurance and flood coverage.
*Not rated by AM Best, but rated A (Exceptional) by Demotech for financial stability
**Not officially ranked by J.D. Power due to eligibility restrictions
Allstate
Best for: Discount opportunities
Allstate tied with USAA for Best Home Insurance Company Overall in the 2023 Bankrate Awards. Although the Bankrate Awards focus on homeowners insurance rather than renters, many of the same homeowners features also translate to the company’s renters insurance product. For instance, Allstate won partly thanks to its highly-rated mobile app and wide network of brick-and-mortar agencies. Additionally, Allstate offers even more savings opportunities with its multiple policy discount, 55 and retired discount and Easy Pay discount for scheduled monthly payments. However, Allstate received a slightly below-average rank in the 2022 J.D. Power Home Insurance Study for renters insurance customer satisfaction. While the score is not significantly lower than the industry average, customers seeking exceptional customer service may want to carefully weigh how the carrier stacks against other options.
PROS
Checkmark
Access to other policy types for a multiple policy discount
Checkmark
Easy-to-use mobile app and online web portal for policy management
CONS
Close X
Slightly lower J.D. Power score than the other companies on this list
Learn more: Allstate Insurance review
Erie
Best for: Regional coverage with robust options
Erie Insurance has a stellar reputation built upon affordable rates and an easy-to-navigate claims service. Erie offers considerable discounts on bundles, additional living expenses if you need to find a temporary place to live and the option for extra coverage for things like identity recovery and your more expensive personal items. Unfortunately, Erie only offers renters insurance in roughly a fifth of the U.S., but could be an excellent choice if you live in one of the areas it services. States covered are Illinois, Indiana, Kentucky, Maryland, New York, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and Wisconsin. Erie also offers coverage in Washington, D.C.
PROS
Checkmark
Ability to work with a local insurance agent
Checkmark
If requesting a quote seven days from policy start date, renters insurance could qualify for an additional discount
CONS
Close X
Limited state availability compared to other national carriers
Learn more: Erie Insurance review
Liberty Mutual
Best for: Renters on a budget
Liberty Mutual could be a great choice for renters on a tight budget. The company advertises that its policies start at just $5 per month. Although the coverage options available are fairly basic, you might be able to add replacement cost coverage for your belongings, as well as jewelry coverage or earthquake coverage. However, Liberty Mutual does have a higher-than-average complaint index score with the National Association of Insurance Commissioners (NAIC). A score of 1.00 represents a baseline number of complaints. Liberty Mutual’s overall score is 2.66, indicating that the NAIC receives more than two and a half times as many complaints for the company than average.
PROS
Checkmark
Option to add replacement cost, meaning personal belongings will be replaced without factoring in depreciation
Checkmark
With blanket jewelry protection, renters have one set amount to cover their jewelry with no need for appraisal or deductible after a covered loss
CONS
Close X
High NAIC score indicates Liberty Mutual receives more complaints than other similar-sized carriers
Learn more: Liberty Mutual Insurance review
Lemonade
Best for: Digital policy management
Lemonade is another 2023 Bankrate Award winner for Best Digital Home Insurance Company. Lemonade terms itself as “insurance for the 21st century.” Its mobile app, powered by Maya, its artificial intelligence bot, helps renters get a quote, manage their policy and file a claim all in one place. Renters who want an insurance company focused on global causes will appreciate that leftover premium is donated to many different causes like the Malala Fund, the Trevor Project and March for Our Lives. However, the all-digital experience means renters won’t be able to have in-person customer service. Additionally, Lemonade renters insurance is only available in 28 states and Washington, D.C.
PROS
Checkmark
Simple mobile app interface for all your insurance needs
Checkmark
Policies can be started in 90 seconds and claims paid out in as little as three minutes
CONS
Close X
Renters insurance is only available in 28 states and Washington, D.C.
Close X
Lemonade car insurance is only available in a few states, making it difficult for renters to qualify for a multiple policy discount
Learn more: Lemonade Insurance review
Nationwide
Best for: Customer service experience
If you’re looking for world-class customer service, then Nationwide might be worth checking out. Out of all the renters insurance companies that J.D. Power officially ranked in 2022, Nationwide earned the top spot. Although Nationwide might be a little more expensive than average (the company states that its renters policies start at $20 a month), the added expense could be worth it to the right shopper. Additionally, Nationwide offers a Brand New Belongings endorsement, which could help you replace your items for their replacement value rather than actual cash value (which takes into consideration depreciation).
PROS
Checkmark
May get a bundling discount for purchasing renters and auto
Checkmark
Optional coverage-add on could help make for a robust renters policy
CONS
Close X
May be more expensive than average
Close X
Customer service is not 24/7
Learn more: Nationwide Insurance review
State Farm
Best for: Local offices
State Farm offers renters insurance in every state throughout the U.S., making it a great option for renters in underserved rural areas or areas. But it’s not just State Farm’s wide availability that may make it a good option. The company also has exceptional ratings from companies like J.D. Power and AM Best, which could make it a safe bet for your renters policy. Although State Farm doesn’t offer nearly as many discounts as some of the other providers we’ve chosen, you might lower your premium if you insure your car with State Farm or if you have security devices installed in your apartment.
PROS
Checkmark
Excellent customer service and financial strength ratings from third-party agencies
Checkmark
Knowledgeable local agents to help you with your insurance journey
CONS
Close X
Fewer discount opportunities compared to other carriers
Learn more: State Farm Insurance review
The Hartford
Best for: Policyholder perks
To qualify for The Hartford, you must be a member of AARP — and to be a member of AARP, you must be 50 or older. However, AARP members get exclusive access to a long list of discounts and perks as well as access to The Hartford renters insurance. The Hartford policyholders could save on hotels, gas, plane tickets, cell phone plans and more. The carrier’s New for Old protection also comes standard in its renters policies, which offers replacement cost for your items if they are damaged or destroyed in a covered loss. Additionally, The Hartford may give you a discount on your renters policy simply for living in a gated community.
PROS
Checkmark
Flood coverage is standard on renters insurance policy
Checkmark
If moving or deployed overseas, personal belongings would be insured with overseas coverage
CONS
Close X
Not available to the general public
Close X
Can only do business over the phone or online, no local offices
Learn more: The Hartford Insurance review
USAA
Best for: Military-centric coverage
USAA tied for Best Home Insurance Company Overall in the 2023 Bankrate Awards, partly due to its high J.D. Power scores and nationwide availability. The company has a stellar reputation among consumers and the insurance industry, and it offers renters insurance policies particularly supportive for those in a military lifestyle. The basic policy includes coverage for personal property, personal liability, medical payments and additional living expenses. Flood coverage is also included in standard USAA renters insurance policies, which is notable considering that flood insurance typically has to be purchased separately.
However, USAA is not available for everyone, which could be considered a major drawback of the company. Only military members, veterans and immediate family members may be eligible for coverage. Unless you fit one of these categories, you will not be able to purchase a USAA policy.
PROS
Checkmark
May get a bundling discount for purchasing renters and auto
Checkmark
Optional coverage-add on could help make for a robust renters policy
CONS
Close X
May be more expensive than average
Close X
Customer service is not 24/7
How to compare renters insurance companies
With so many renters insurance companies on the market, how do you choose which provider is right for your needs? Finding the best renters insurance policy will depend largely on your particular living situation and coverage preferences. The first step to finding a provider who can best cover your unique circumstances is to take some time to consider what you may want from a company.
For example, if you run a business or keep business-related items in your home, you may find that an add-on for extended coverage or business personal property is necessary. This may cause you to look for a provider which specializes in renters insurance for business personal property.
Additionally, it may be helpful to review third-party reviews from companies like J.D. Power and AM Best. J.D. Power runs numerous studies each year, including evaluating renters insurance companies. Scores are out of 1,000 points and evaluate customer satisfaction based on a number of factors. AM Best rates the financial strength of insurance companies based on their historical ability to meet financial obligations and pay claims. This measure may be comforting when predicting how future claims are likely to be handled, especially if a company is inundated with numerous claims at once.
Once you have identified a handful of companies that could meet your needs, you can start requesting quotes. This can often be done online or by phone, or you could contact a local agency. Getting quotes from several different insurance carriers allows you to compare premiums, coverage options, discounts and policy features.
Additional considerations before choosing a renters insurance policy
Like any insurance policy, renters insurance is not one-size-fits-all. No two rental circumstances are the same, and neither will the insurance for them be. When choosing a renters insurance company and personalizing your policy, you may want to consider:
The value of your belongings. To help ensure you do not over- or under-insure your belongings, you could create a home inventory. This exercise could help you estimate the total value of your belongings so that you choose an appropriate personal property coverage amount.
If you have any high-value items. Possessions like fine jewelry, collectibles, fine art, guns or antiques often have set coverage limits included within a policy. For example, without alterations to a policy, you might only have $1,000 in coverage for jewelry, regardless of how much personal property you buy. Scheduling your high-value possessions can provide more accurate and broader coverage.
If you have a pet. You might not consider your pet when you buy renters insurance, but you should. While many pets are covered for liability, some dog breeds and exotic animals are often excluded. If you have one of these animals, you probably want to look for a company that will extend liability insurance to it. That way, if your pet injures someone, your insurance can step in to help pay for the bills.
How often friends and family visit. If you like to host events at your home, or often host large parties of people, having this in mind could help you determine the right amount of liability insurance for your needs.
What company insures your vehicle: Many car insurance companies also offer renters insurance. When you bundle your policies together, you could see significant savings. Plus, there’s the added convenience of having all your insurance policies in one place.
If you aren’t sure where to start in your search for renters insurance, sitting down with a licensed insurance agent can be helpful. An agent can listen to your needs, circumstances and concerns and help recommend companies, coverage types and policy features that fit your situation.
America’s national parks are legendary: You can probably conjure up images of Old Faithful at Yellowstone, El Capitan at Yosemite, and the Great Smoky Mountains without too much trouble. But what you may not realize is that our country’s network of over 400 national parks can also be a terrific, budget-friendly vacation destination.
Planning a road trip to a national park with the family or your BFFs can be an amazing way to see the natural beauty of the U.S. And it’s a popular idea: In 2022, the parks welcomed 312 million visitors, up 5% from the previous year.
By doing some prep work, you can be among those travelers who revel in the iconic landscapes of the parks while having an environmentally friendly, low-cost adventure. Here, you’ll learn the ropes, from advice on destinations to ideas for keeping expenses down.
Cheap National Parks to Visit
Unlike other standard vacation destinations (theme parks, etc.), most national parks don’t charge an entrance fee. Over two-thirds of these sites, including the Great Smoky Mountains National Park on the border of Tennessee and North Carolina, are free to enter. So the vast majority of these destinations are indeed cheap national parks to visit!
Even if you choose one that does charge, you’ll most likely pay by the carload, like the 7-day pass for your group at Rocky Mountain National Park in Colorado for $35. The ever-popular Yosemite and Acadia National Parks charge the same fee.
If you want to see which parks charge a fee, check out the National Park Service’s website .
Here’s an important warning, however: During peak times, you may need a reservation simply to drive into a park. You may gain admission if you have another kind of reservation (hotel room, say, or campsite), but double-check. Keep this top of mind if you are thinking you can just cruise on over and take selfies at, say, Half Dome for a day in August. Probably not going to happen without advance planning.
You can also take advantage of fee-free days. The National Park Service selects certain holidays and special occasions each year to offer admission-free entrance to everyone. So, you can visit over 400 sites at no cost in 2023, like on Great American Outdoors Day on August 4.
To find parks conveniently located near you, use the National Park Service’s “Find a Park ” tool online. Then you can compare options and see what type of landscape you’d most like to visit.
Setting a Budget for Visiting National Parks
If you have a vacation in mind, you might have already started budgeting for it. Saving money for a trip is an important step and allows you to explore the world guilt-free. But to make the most out of your visit to a national park, you need to know exactly what type of costs to expect. That way, you never have to worry about not having enough money on hand to enjoy yourself.
Here are some expenses you should account for in your national parks budget.
Food & Drink
Saving money on a road trip is often challenging since you don’t have all your basic necessities ready at your disposal. That includes food and drink, whether your style is more drive-through or sit-down dining or “I’m happy to cook for myself.” You’ll need to factor the cost of meals into your travel budget.
One budget-smart option is to rent a cabin with a kitchen. With that, you can pick up groceries once you arrive and cook your meals instead of ordering out. That’s a big savings right there!
You may not be the type to cook on vacation, though. If not, you can look for affordable options near you for meals. But keep in mind: You’ll need to budget for your three meals a day, plus you’ll probably want some water and a snack here and there, lots of liquids to fuel you on hikes, and perhaps to go out for a beer or two one evening. There will likely be taxes and possibly tips involved. See how it all adds up and what you can afford.
One very dollar-smart move to stay well-fed and not blow your budget: Use a backpack cooler. If you want to spend your days hiking and walking, you’re going to get thirsty and hungry pretty quickly. You can load a cooler up with protein bars, nuts, apples, and granola, preventing you from buying potentially pricey food throughout the day.
Gas & Travel
When it comes to the expense of traveling to national parks, the nice news is that a destination might be closer than you think. Many of us hear the phrase “national park” and think of large, sweeping spots in the West, like the Grand Canyon. But that’s just one iconic site. There are actually hundreds of places in the U.S. under the National Park Service’s care, from historic sites to scenic trails. So you may not have to plan out a cross-country trip to enjoy what this country has to offer.
However, if you have to travel a significant distance, why not whittle your transportation costs? For example, if you need to fly, it can pay to be flexible with your dates and look for the lowest possible fare. Sites like Expedia and Kayak can notify you when prices drop on flights you are interested in. Another smart move is to pack light so you won’t pay those ouch-inducing baggage fees.
Perhaps you’re driving to your destination, though. If you want to improve gas mileage and get the most out of your trip, try to choose a park that isn’t isolated. For example, there are multiple national parks near Las Vegas, such as Death Valley National Park and Zion National Park, which are about two and a quarter hours apart. Once you’re at Zion, you might decide to hop over to Bryce Canyon National Park, barely an hour and a half away, and see the incredible rock formations known as hoodoos.
You’ll be able to visit multiple parks without too much drive time, save money on gas, and see all the more spectacular sights. It may be the best way to travel around America on a budget.
Recommended: Guide to Renting a Car
Lodging
You know the law of supply and demand: When demand is high, supply gets scarce — and potentially pricey. With that in mind, note that the peak season for visiting national parks is summer. Kids are off from school, temperatures are warmer, and international travelers may visit our lovely landscapes. So that means bigger crowds, which impacts local lodging. It will be harder to find accommodations, and their prices will be higher, too.
Because of this, it’s best to book your lodging in advance so you don’t get shut out of affordable rooms. National Parks have a wide range of accommodations; during spring 2023 at Yosemite, for instance, rooms ranged from $101 to $500+ a night. A location farther out from the park will be cheaper as well. Those who accumulate points on a travel credit card may find lodging nearby at a discount.
Of course, that’s not your only option. You can also rent an RV or stay at a campground. If you choose to camp, check to see if you need a reservation. At national parks, the average price is around $20 per night, though prices can range from $5 to $30 or so. These sites usually offer electricity hookups, water, camp stores, and fire rings. Research what your campground offers to help plan out your packing needs. If you snag one of these spots at a free-admission park and already have tents and other gear on hand, congrats! You may have scored one of the cheapest national park visits to be found.
Activities and Entertainment
If you have never visited a national park before, you might not know what they offer. While part of their appeal is just being in the great outdoors and soaking in the views, you also have activities available to you. There may be anything from guided walks and museums to talks and films, and they all typically come at no extra cost. It can be a great way to learn about local wildlife, fossils, history, and more.
In addition to that, you might seek other activities. For instance, if you are visiting Florida’s Everglades National Park, perhaps you want to go on a kayak adventure with a guide. It can be a terrific way to see the mangroves and sawgrass marshes the area is famous for. That will be an additional cost to keep in mind.
There’s also every chance that you may pass all kinds of mini-golf, waterparks, multiplexes, and other attractions as you explore the area near a national park. If a vacation isn’t a vacation without indulging in these offerings, factor that into your budget, too.
Permits & Passes
Again, most parks are available to the public for free. But if you want to visit multiple national parks, consider opting for a National Park Annual Pass. It typically costs $80 ($20 for seniors) and gives you unlimited entrance to over 2,000 federal recreation areas, such as national parks.
Recommended: How Credit Card Travel Insurance Works
Saving for Your Travel
Saving up for your trip can be pretty straightforward. One way is to set up a dedicated travel fund. Separating your vacation money from your regular savings account will make your progress that much easier to track. You can also maximize your savings by setting up automatic contributions to your travel fund. That way, you never forget to put in a few dollars on payday.
If that sounds appealing, you need to pick the correct type of account. Some options, like a high yield bank account, promise higher interest rates than your standard version. However, your choice will depend on your timeline. For example, someone taking a trip in a year has more time to accrue interest than someone taking a trip within a few months.
Let’s say you don’t have much time, though. Even if you can’t build much in the way of interest, you can still find extra cash in your life. You might need to budget a bit differently. For example, if you have a streaming service membership, you can cancel that for a while. Or perhaps you can pick up a side hustle on the weekends, whether that means driving for a rideshare service or walking dogs.
The Takeaway
Vacations are a time to relax, enjoy yourself, and make memories with your loved ones. The last thing you need is for that time away to leave you deeply in debt and saddled with stress. That’s why a trip to a national park can be such a terrific destination: You’ll explore the great outdoors but can do so without breaking the bank, thanks to low fees, free activities, and the smart saving advice you learned here.
Are you considering a week wandering around Yellowstone? Or maybe a weekend at a nearby park? Or just looking to stash some cash while you figure things out? We’re here for you! SoFi Checking and Savings offers eligible accounts a competitive APY. That means your money grows faster. And we are devoted to being account fee-free, with no monthly or minimum-balance charges.
Let SoFi help you afford your next adventure sooner.
FAQ
Is it expensive to visit national parks?
In many cases, it’s a more affordable vacation than other options. Over two-thirds of national parks offer free admission year-round. Plus, there are many throughout the country, meaning you can pick one that’s close and may not have to spend much on travel costs. The main expenses will come from your lodging, food, and additional activities.
How many days should you spend at a national park?
The length of your stay should depend on the type of itinerary you want to build and the size of the park you are visiting. There are many itineraries for Yosemite online that involve staying three to five days, but you could certainly spend much longer or shorter periods of time. Worth noting: Some smaller parks and historic sites may not be open every day. Larger parks may close due to weather events. Always check in with a park (either online or by calling) beforehand.
How much does it cost on average to visit a national park?
Most national parks are free. The National Park Service allows you to see the entrance rates for each fee-charging national park. Use their listings to see if the park you want to visit charges an entrance fee. The per-vehicle prices are often between $20 to $35 for seven days.
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. 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. External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement. SOCC0323047
The Federal Reserve has announced nine back-to-back interest rate increases since the start of 2022. The board is due to meet May 2-3, after which it may — or may not — announce interest rate increase No. 10.
For much of the past two years, interest rate increases have been a near certainty. The question has been how much the Fed will raise them.
But now, in light of slowing inflation and the recent collapse of Silicon Valley Bank, some investors are wondering whether the Fed will raise rates at all.
Why is the Federal Reserve raising interest rates?
The Fed has been raising interest rates to try to bring down excessive inflation.
“My colleagues and I understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal,” Fed Chair Jerome Powell said in a news conference after the March 22 Fed meeting.
The latest reading of the consumer price index, an important measure of inflation, showed a 5% year-over-year inflation rate in March 2023. That’s lower than the peak CPI inflation rate of 9.1% from June 2022, but it’s still more than double the Fed’s target rate.
“Most economists and financial experts believe that raising rates will slow inflation, although they sometimes disagree on the reason why higher rates do that,” Ramon DeGennaro, a professor of finance at the University of Tennessee, said in an email interview.
Interest rate increases affect the economy in several ways. They increase the cost of debt, which discourages people and businesses from borrowing and spending money. For example, when interest rates go up, it’s more expensive to get a car or a home loan.
They also increase the interest rates on savings accounts and bonds, which encourages people to save rather than spend. As of April 2023, some high-yield savings accounts pay interest rates as high as 4.75%.
Both of these incentives decrease spending, and therefore, the demand for goods and services.
That keeps inflation — which is basically a fancy word for “price growth” — under control.
Advertisement
Fees
$0
per trade for online U.S. stocks and ETFs
Fees
$0
per trade
Fees
$0
per trade
Account minimum
$0
Account minimum
$0
Account minimum
$0
Promotion
Get $100
when you open a new, eligible Fidelity account with $50 or more. Use code FIDELITY100. Limited time offer. Terms apply.
Promotion
Get up to $700
when you open and fund a J.P. Morgan Self-Directed Investing account with qualifying new money
Promotion
Up to $600
when you invest in a new Merrill Edge® Self-Directed account.
What are the odds of another interest rate increase?
The Chicago Mercantile Exchange’s FedWatch tool uses data from futures markets to estimate the odds of various interest rate change scenarios. As of April 28, the tool said there’s a 79.1% chance that the Fed will raise interest rates by 0.25%, and a 20.9% chance it will leave interest rates unchanged.
DeGennaro said that he is confident there will be a small increase.
“I would estimate the chance of a quarter-point increase at between 80% and 90%. If the Fed doesn’t hike rates, then it’ll hold rates at current levels,” DeGennaro said.
What would another interest rate increase do to markets?
In theory, higher interest rates are a negative for the stock market because they raise the cost of corporate borrowing. But in practice, the market’s reaction to an interest rate increase is a bit more complicated.
Many traders try to predict the impact of interest rate changes before they happen. Some make trades based on those predictions in the days leading up to interest rate decisions.
As a result, the market collectively “prices in” the interest rate changes expected by the public ahead of time.
In the case of the May Fed meeting, the market is expecting a 0.25% increase. The S&P 500 index traded up 0.91% in the week before the meeting, due in part to that expectation.
When an interest rate decision is actually announced, the market generally doesn’t have much of a reaction to the increase or decrease itself. Instead, it only has a big reaction if the decision is different from what was expected. That typically means a sell-off for a larger-than-expected increase, or a rally for a smaller-than-expected increase.
“I would expect a tepid response to a quarter-point increase,” DeGennaro said.
Where are interest rates headed next?
“Markets seem to be expecting maybe one more small rate increase and then a very slow decline for the next year or so,” DeGennaro said.
Powell made a similar prediction in the news conference after the March 22 Fed meeting.
“If the economy evolves as projected, the median [Federal Open Market Committee] participant projects that the appropriate level of the federal funds rate will be 5.1% at the end of this year, 4.3% at the end of 2024, and 3.1% at the end of 2025,” Powell said.
The coming shift from rising interest rates to falling interest rates could have significant effects on stocks, as some sectors of the stock market — such as the consumer discretionary, technology and utilities sectors — tend to perform better than others when rates are low.
But it’s too early to say with certainty exactly when rates will start to come down.
For now, investors will be waiting to see whether May 3 will mark the final interest rate increase of this cycle — or whether that final increase is already behind us.
If you are familiar with peer-to-peer (P2P) investing through sites such as Lending Club and Prosper, then you may be interested in learning about NSR Invest. The company provides a software service that works with major P2P lenders in helping investors on those platforms to better manage their portfolios.
NSR Invest will be particularly beneficial for people who want to invest in P2P loans, that don’t fit the do-it-yourself investor mold, and prefer to have a generous amount of help and support in the process.
In addition to helping individual investors, NSR Invest also enables financial advisors to offer plug-and-play Marketplace Lending investment opportunities to their clients.
About NSR Invest
Based in Denver, Colorado, NSR Invest began operations early in 2015, through the merger of Lend Academy Investments and Nickel Steamroller. The company is a registered investment advisor, bringing innovative financial products centered around a private fund and individually managed accounts. NSR Invest now assists thousands of clients managing more than $100 million in P2P loan investments.
The company specializes in the investing side of P2P lending sites. P2P lending is sweeping the lending world, by bringing borrowers and investors together on the same platforms to create loans without using the services of traditional banks. That direct relationship is resulting in what are often lower interest rates for borrowers, yet higher returns for investors. The elimination of the “middle man” – a.k.a., the bank – makes that possible, because it eliminates the lending costs that are part of mainstream banking.
NSR Invest works to streamline the investment process for P2P investors. Investors on P2P platforms must sift through hundreds of loans in order to find those that meet their own personal lending criteria. They must also build a portfolio of loans – or slivers of loans referred to as “notes” – that will minimize their downside risk.
That’s where NSR Invest comes into the picture. They provide the following resources to P2P investors:
Proprietary credit algorithms that target a higher rate of return, while reducing default risk
Auto-investing execution speeds allow faster access to the best quality loans
The ability to make P2P lending a totally hands-off effort for the investor
They provide a team committed to providing you with an “awesome experience” at every point in the investing process
In short, NSR Invest takes the mystery out of P2P investing, empowering you to improve your returns, while expending less effort in the process. They act as an investment management service for P2P investing, which frees up your time for better things.
Due to regulatory issues, NSR Invest is not yet available in the following nine states: Alabama, Maryland, New Jersey, New Mexico, North Carolina, North Dakota, Ohio, Pennsylvania, and Tennessee.
How NSR Invest Works
NSR Invest works with Lending Club, Prosper, and Funding Circle, and you can add those platforms to your NSR Invest platform right from the NSR Invest site. The site has full API integration with all three P2P platforms.
Fully-managed accounts. As the name implies, these accounts are directly managed by NSR Invest. They provide higher target returns, with lower target risk and volatility, all with a hands-off investment strategy, that requires little effort from the investor.
Fully managed accounts provide three account strategies:
Conservative – this strategy targets a 5% net return (after fees and expenses)
Balanced – this strategy targets a 7% net return
Assertive – this strategy targets a 10% net return
As of October 31, 2015, NSR Invest has achieved net performance of 5.48% on the Conservative strategy, 10.44% on the Balanced strategy, and 11.42% on the Assertive strategy. If these are better than the returns that you are now getting through your investments with Prosper or Lending Club , you need to check out NSR Invest.
Self-directed accounts. With these accounts you can choose to either use pre-built NSR Picks credit models, or fully customize your own investment strategy. You can also use a combination of methods.
Minimum account balance. Fully managed accounts require a minimum of $10,000. Self-directed accounts require a minimum of $5,000.
Accounts with NSR Invest can be canceled at any time, but require 14 days notice.
NSR Invest Features and Benefits
NSR Invest offers several advantages to the person who wants to invest in P2P loans, but either doesn’t fully understand that process, or doesn’t want to put in the time and effort that are necessary to build a large, well diversified portfolio of loans and notes, especially across several P2P platforms.
Back-test filter. This tool allows you to create and test your own filtering strategies. And once tested, you can use these strategies to create an auto investing capability.
Pricing and fees. NSR Invest charges fees only on the amount of idle cash and any investments made by NSR Invest, and only then when the aggregate balance of your account exceeds $20,000. For example, let’s say you have $100,000 in cash, and $50,000 in notes invested through Lending Club before signing up with NSR Invest. The fee would be charged only on the $100,000 in uninvested cash, and not on the existing $50,000 in notes that you already hold.
There are no setup fees of any kind when you begin the program. The annual fee on self-directed accounts is calculated on an account-by-account basis, and uses a mathematical equation to determine specifically what that will be. No estimated ranges are provided.
On Fully Managed Accounts, the annual fee is 0.60% of the account balance.
IRA and Trust accounts. You can set up an IRA through NSR Invest, and even roll over an existing 401(k) account into the IRA. You may also be able to set up a trust account, depending on the P2P platform that you are working with.
P2P Fund. This is something of a mutual fund for P2P investment platforms that is available through NSR Invest. The fund invests in loans originated by Lending Club, Prosper, Upstart, and Funding Circle. The fund targets a 10% net return after fees and expenses.
The minimum to invest in the fund is $250,000 – you must be an accredited investor in order to invest in the fund. The fund charges an annual fee equal to 1.5% of the investor’s account balance, charged on a monthly basis (0.125%).
Will NSR Invest Work For You?
If you have been attracted by the interest rate returns on P2P loan investments – and who wouldn’t be – you may want to consider doing it through NSR Invest. The service can handle investment selection for you, as well as the execution of purchases and the maintenance of your portfolio.
P2P investing can be highly rewarding, but it does require a considerable amount of time and attention. NSR Invest can remove that burden from you, and help you to best accomplish a low risk, high return portfolio balance.
If you have been toying with the idea of investing in P2P loans, or you are already doing it now but finding it tedious and time-consuming, give NSR Invest a try. Whether you are ready to invest 20,000 dollars or need to know what would be the best way to invest 500000 dollars, Good Financial Cents is here to help you!
Arizona-based lender On Q Financial will form a multi-partner mortgage banking joint venture with HomeCo Partners, a consortium of real estate brokerages and a builder, HousingWire has learned. HomeCo Partners had created a JV with New Rez, which is permanently winding down.
The JV, named Partners United Mortgage,has partners consisting of real estate brokerages and builders — including Dilbeck Real Estate in Pasadena, California; Lisa Burridge and Associates in Casper, Wyoming; Rockford Homes in Columbus, Ohio; Weichert ABG in Louisville, Kentucky; Weichert Space Place Huntsville, Alabama; Stark Real Estate in Madison Wisconsin; Weichert Advantage Plus in Knoxville, Tennessee; and Weichert Griffin in Fayetteville, Arkansas.
On Q Financial was originally looking to buy New Rez’s share of a joint venture created with HomeCo Partners, Pat Lamb, CEO of On Q Financial, said in an interview. After the deal fell through due to regulatory filings, HomeCo Partners suggested forming a new JV with On Q Financial.
“This JV actually, because it’s a consortium, allows real estate firms and home builders that don’t quite have enough size to go the full joint venture route to still get into the mortgage side of the business by becoming one of the partners in the JV,” Lamb said.
Unlike a traditional JV model, the consortium model doesn’t require real estate brokerages or builders to make a large upfront investment to start. It also gives the JV a geographical and business model dispersion.
“If one of our partner’s business slows down for a year, it doesn’t affect the seven other partners, and it doesn’t affect the overall performance of Partners United the same way it would if there was only one partner,” Bob Shield, president of Partners United Mortgage, explained.
On Q Financial is looking to benefit from servicing its referral partners throughout their lifecycle. The retail channel – which accounts for 85% of the lender’s entire business – is On Q Financial’s bread and butter, and the remaining 15% of production comes from the correspondent and wholesale channel, Lamb noted.
“We are constantly out building relationships with our referral partners, and doing it from initial introduction, where you’re doing a single transaction to try and to grow those relationships to become a preferred lender. Having the ability to do a consortium joint venture like this gives us the ability to grow with our clients,” Lamb said.
About 25 loan officers are expected to join the multi-partner JV with Partners United Mortgage, paying for On Q Financial’s backroom, HR and financial support.
“When the company makes money, they (the eight partners of HomeCo) split based on their percentage of ownership, not their contribution to the business. Maintaining strong compliance is important for On Q, and properly structuring ownership and distributions is critical from a Real Estate Settlement Procedures Act (RESPA) perspective,” Shield noted.
Most recently, On Q Financial brought on former employees from Celebrity Home Loans.
A deal to acquire eight production divisions of Celebrity fell apart due to a mass layoff at Celebrity in February. Afterward, On Q Financial brought over about 20% of what Celebrity was producing after several of Celebrity’s retail businesses transitioned to Luminate Home Loans in December and January, Lamb said.
On Q Financial, which originated $2 billion last year in 46 states, is in acquisitive mode, Lamb added.
“We’re actively looking and in the market to acquire other companies that are deciding that maybe it’s time to leave the business or consolidate,” he said.
Illinois is home to Chicago, one of the most populous cities in the U.S. But whether you live in Chicago, Joliet, Carbondale, or one of the many small towns in Illinois, there’s a bank for you.
The state is home to a wide range of bank branches, from large, national banks to small lenders and credit unions. When you’re ready to shop banks in Illinois, there are several factors to consider.
10 Best Banks in Illinois
1. BMO Harris
Although BMO Harris is a regional bank, it’s headquartered in Chicago, so it has a heavy Illinois presence. The bank has been around since 1882 and has long been considered one of the best banks in Illinois.
In addition to branches in Illinois, Indiana, Arizona, Missouri, Minnesota, Kansas, Florida, and Wisconsin, BMO Harris also offers ATM access through the MoneyPass network. They have a checking account option with no monthly maintenance fees, as well as a robust mobile banking app to manage your account.
Fees:
No monthly service fee
$15 overdraft fee
Balance requirements:
$25 opening deposit
No minimum daily balance required
ATMs:
Fee-free at 40,000+ BMO Harris and MoneyPass ATMs nationwide
$3 fee for out-of-network transactions
Interest on balance:
0.01% APY on savings
Additional perks:
Spending habit analysis available in mobile app
Competitive loan rates
2. U.S. Bank
Illinois residents looking for a national bank should check out U.S. Bank. U.S. Bank has ATMs across Illinois and the rest of the country, and a full selection of savings accounts and checking accounts, as well as an online banking option.
Currently, one of U.S. Bank’s best deals is its Bank Smartly Checking account, which pays interest on your balance and currently offers a $300 sign-up bonus. What makes this one of the best checking accounts, though, is that if you enroll in Smart Rewards, you’ll earn rewards based on your account balance.
Fees:
$6.95 monthly fee (waived with qualifying direct deposits or minimum balance)
$36 overdraft fee (waived up to $50)
Balance requirements:
$25 minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 4,700 ATMs nationwide
$2.50 transaction fee for each out-of-network ATM
Interest on balance:
Up to 0.05% APY on Bank Smartly checking
0.01% APY on savings
Additional perks:
Automatically move up interest tiers as your balance grows
Additional rewards for seniors, children, military, and veterans
3. Chime
Chime is another online bank that operates without local branches. You’ll have everything you need in the app, with online banking features like peer-to-peer payments and an ATM locator.
You can also sign up for a Chime High-Yield Savings Account and earn interest rates of 2.00% APY on your balance. With automatic savings features, money can be automatically moved from your checking account to savings to help you set money aside for the future.
Fees:
No monthly fees
No overdraft fees
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 60,000+ ATMs nationwide
$2.50 transaction fee for out-of-network ATMs
Interest on balance:
2.00% APY on savings accounts
Additional perks:
Spot Me covers up to $200 in overdrafts
Round Ups feature automatically moves money into savings
4. Huntington Bank
Huntington Bank is a regional bank with branches in Illinois, Ohio, Colorado, Florida, Indiana, Kentucky, Michigan, Minnesota, Pennsylvania, West Virginia, and Wisconsin. There are multiple tiers of checking accounts, but if you’re looking for the basics, the Asterisk-Free Checking Account is fully free with no minimum balance requirement.
Before choosing this bank, check for branches and ATMs in your area. Cash withdrawals are only fee-free at Huntington-owned ATMs. But if you’re fine with relying on mobile banking apps for all of your banking services, you’ll likely find everything you need while traveling.
Fees:
No monthly service fee
$15 per-transaction overdraft fee after balance goes $50 in the negative
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at more than 1,600 Huntington Bank ATMs nationwide
$3.50 fee for each out-of-network transaction
Interest on balance:
Up to 0.06% APY on savings
Additional perks:
View current account balance without logging in
Standby Cash offers quick access to credit line
5. Chase
Those who prefer a national bank might like Chase Bank, which has branches throughout Illinois, as well as 47 other states (excluding Alaska and Hawaii). New customers can qualify for a $200 bonus by opening an account and setting up direct deposit within 90 days.
There are multiple checking account options, but Chase Total Checking is the most popular. There’s a $12 fee each month, but if you’re taking advantage of the bonus, direct deposit accounts waive the fee as long as at least $500 is coming in each month.
Fees:
$12 service fee per month (waived with $500 in qualifying deposits or $1,500 daily balance)
$34 per transaction (waived with Overdraft Assist)
Balance requirements:
No minimum deposit to open
No minimum daily balance required ($1,500 to waive $12 monthly fee)
ATMs:
Fee-free at more than 16,000 Chase Bank ATMs nationwide
$3-$5 fee for each out-of-network transaction
Interest on balance:
Up to 0.01% APY on savings
Additional perks:
$200 bonus for new checking account with direct deposit
Checking accounts available for children ages 6 to 17
6. CIT Bank
CIT Bank is an online-only bank that is geared toward helping you set money aside for the future. One notable product is the CIT Platinum Savings account, which offers 4.75 APY on balances of $5,000 or more if you deposit at least $100 monthly.
But CIT is great if you’re in the market for a checking account, too. With CIT eChecking, you get one of the rare interest checking accounts that comes with no monthly fees or minimum balance. Although there are no ATMs or branches, CIT does refund up to $30 a month for non-network ATMs.
Fees:
No monthly service fee
No overdraft fee
Balance requirements:
$100 minimum deposit to open
No minimum daily balance required
ATMs:
No CIT ATMs available
Up to $30 monthly in non-network ATM fees refunded
Interest on balance:
Up to 0.10% APY on checking
Up to 0.25% APY on checking with $25,000+ balance
Up to 4.75% APY on savings
Additional perks:
Up to 1.00% APY on savings with $100 monthly deposit
Up to 5.00% APY on CDs
7. Fifth Third Bank
Another regional bank with a heavy Illinois presence is Fifth Third Bank out of Ohio. You’ll find branches in Illinois, Ohio, Florida, Georgia, Indiana, Kentucky, Michigan, North Carolina, South Carolina, Tennessee, and West Virginia.
Fifth Third Bank offers a variety of account options, but the most popular checking account is Momentum Checking, which has no monthly fee. Your checking account comes with Extra Time, which notifies you of insufficient funds so that you can avoid overdraft fees.
Fees:
No monthly service fee
$37 overdraft fee
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at more than 40,000 Fifth Third and MoneyPass ATMs nationwide
$3 fee for out-of-network transactions
Interest on balance:
0.01% APY on savings
Additional perks:
Identity theft monitoring available through Trilegiant for a fee
Fifth Third Extra Time notifies you of overdrafts to let you deposit money by the end of the day
8. PNC Bank
PNC is one of the larger regional banks, with a presence in 27 states, including Illinois. Currently, you can earn a bonus of up to $200 when you open a checking account and enroll in qualifying Virtual Wallet products.
Where PNC really excels is in its online and mobile banking offerings. Its checking account comes with no monthly service fees or minimum balance requirement, and Low Cash Mode lets you manage things when funds get low.
Fees:
No monthly service fees
$36 maximum overdraft charges per day in Low Cash Mode
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 60,000+ ATMs nationwide
$3 transaction fee for out-of-network ATMs
Interest on balance:
2.00% APY on savings
4.30% APY on high-yield savings account
Additional perks:
$200 bonus with Virtual Wallet signup
Low cash mode helps you when funds are low
9. Ally
While there are no physical branches, Ally Bank builds everything you need into its online and mobile banking platforms. You’ll not only get a free checking account with no fees or minimum daily balance requirement, but both checking and savings accounts offer interest on your balance.
There are some activities that mobile banking can’t handle, though. Ally has you covered on those, too. You’ll have fee-free access to 43,000 AllPoint ATMs in Illinois and nationwide. One downside is that you can’t deposit cash at partner retailers as you can with some other online-only accounts.
Fees:
No monthly service fee
No overdraft fees
Balance requirements:
No minimum opening deposit
No minimum daily balance required
ATMs:
Fee-free at more than 43,000 AllPoint ATMs nationwide
Up to $10 in fees at non-AllPoint ATMs reimbursed per statement cycle
Interest on balance:
0.25% APY on checking
3.75% APY on savings
Additional perks:
Spending buckets help you budget
Access to paycheck up to two days early
10. GO2Bank
Another online banking option open to Illinois residents is GO2Bank. You can do most of your banking through their app, including mobile check deposit, online bill pay, and the ability to manage your account.
One unique thing this mobile bank offers is the ability to deposit cash at retailers nationwide. GO2Bank’s savings accounts come with 4.50% APY on balances up to $5,000.
Fees:
$5 per month (waived with eligible direct deposit)
$15 per-transaction overdraft fee
Balance requirements:
No minimum deposit to open
No minimum daily balance required
ATMs:
Fee-free at 55,000+ ATMs nationwide
$3 transaction fee for out-of-network ATMs
Interest on balance:
4.50% APY on savings accounts
Additional perks:
Earn up to 7% by purchasing e-gift cards in the app
Deposit cash at 90,000+ retail locations nationwide
Illinois has plenty of options, whether you go with an Illinois bank or one headquartered elsewhere. The best banks in Illinois combine low fees with features that make banking convenient for you. Don’t rule out online bank options, since you can easily find one with all the features you need, along with fee-free access to local ATMs.
Finding the Best Banks in Illinois
With so many options, it can be tough to narrow down the list of the best banks in Illinois. Whether you choose a local, national, or regional bank, though, it’s important to find the one that offers what you need. Here are some features to consider in your search for a new bank.
FDIC Insurance
When you turn your money over to someone else, you’ll want to make sure it’s safe. If the economy crashes or a bank fails, you won’t want to lose your money. In the U.S., the Federal Deposit Insurance Corporation covers consumers. But that coverage is limited to $250,000 in principal and interest per depositor, per account. Additionally, investment products aren’t covered, although your money market account, individual retirement accounts, and other types of savings account options likely are.
It’s also important to note that not all banks are insured by the FDIC. Whether you’re going with a large, corporate lender or opening a checking account online, research to make sure it’s FDIC insured. Also, pay close attention to limits and make sure you don’t exceed $250,000 with each account.
ATM/Branch Access
At one time, you’d have to rely on local branches and ATMs to deposit checks and withdraw cash. But thanks to tools like Apple Pay and Samsung Pay, you don’t even have to pull out your wallet to make a purchase. Still, you’ll occasionally need some cash, which is why the best banks in Illinois go beyond digital solutions.
Whether you choose a national bank or you open an account online, pay close attention to how you’ll get that help when you need it. Many online bank accounts now partner with ATM networks like AllPoint and MoneyPass to give you that option. Some let you deposit cash through local retailers for a fee.
Low Fees, Great Features
It’s easier than ever to find a checking account with no monthly fees. Even those that do charge monthly maintenance fees will sometimes waive them as long as you have your paycheck electronically deposited or maintain a minimum balance from day to day.
But as you’re researching the best banks in Illinois, it’s important to consider all the costs. If you choose a fee-free online banking option, for instance, but you’ll be paying $10 or more a month for ATMs, it might be worth it to go with one of the national banks that charge a small monthly fee.
Advantages and Disadvantages of Local Banks
National banks have a heavy presence throughout Illinois, but some of the best banks in Illinois are smaller and more community-based. Here are some advantages of going with a local bank:
May provide more personal service
Savings account interest rates may be more competitive
Might have lower rates on auto loans and personal loans
Credit score requirements can be more flexible
There are a few disadvantages, as well, including:
Online banking features might not be as developed
ATM access may be limited while traveling
May have fewer specialized accounts
Savings Accounts
It can be easy to look around for the best checking accounts when you’re planning on making a switch. But saving for the future is important, too. You might find a local bank has lower fees on checking, but a national bank offers better interest yields on its savings accounts. When the benefits outweigh the costs, it could affect your choice.
There are a few other things to consider in a savings account. Some have an initial deposit, while others require a sizable balance for their higher interest rates. Furthermore, consider how often you’ll need to withdraw funds from the account. Many savings accounts limit you to six fee-free withdrawals and transfers per statement cycle under Regulation D.
Other Products and Services
Although checking accounts and savings accounts are top priority with a bank account, there are some other things to consider. You may find the best banks serve as a one-stop shop for all your lending needs, from money market accounts to CDs to mortgage loans. You may instead be someone who prefers to bank with multiple lenders.
It’s also important to look at the payment features your bank offers. Your bank account will likely come with a debit card. Can you earn rewards for using it? If your Illinois bank has credit card options, check for perks, rewards, and APR with those as well. Some financial institutions offer bonuses for new accounts or credit card sign-ups, and that can be another way to cut costs with a new bank.
When you look at Peerform reviews you first need to understand the difference between conventional loans and peer to peer loans. While traditional loans come from a bank and can take months to get done, P2P loans are done through a platform that connects investors and borrowers.
Peer-to-Peer lending sites are rapidly becoming preferred destinations for both borrowers and investors. Peerform is a newer member of the P2P Market and it provides opportunities for both borrowers and investors to get better rates than what they can get from banks or other traditional loan and investment sources.
About Peerform
Peerform was founded in 2010 by Wall Street executives with backgrounds in finance and technology. They started the platform because they realized that traditional lenders like banks seemed unwilling to provide loans for individual and small business owners.
The solution was to create a peer-to-peer lending platform that would bring both borrowers and loan investors together. This would also give investors an opportunity to earn much higher interest rates on their investments than what they could get through traditional bank investments like savings accounts, money market accounts, and certificates of deposit.
The platform is able to offer lower rates to borrowers, and higher rates to investors, because it lacks the physical infrastructure and employment base that banks have. The reduction in operating costs from running a technology driven online lending platform could be passed on both borrowers and investors.
Peerform is headquartered in New York City and has been featured in major media outlets, such as Time and The Street. Peerform is currently eligible to make loans to residents in the 36 following states: Alaska, Alabama, Arkansas, Arizona, California, Delaware, Florida, Georgia, Hawaii, Illinois, Kentucky, Louisiana, Massachusetts, Maryland, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, Nebraska, New Hampshire, New Jersey, New Mexico, Nevada, Ohio, Oregon, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, Vermont, Washington, and Wisconsin.
Loans made on Peerform are underwritten by Cross River Bank, a federally insured New Jersey chartered bank and FDIC member.
Borrowing Through Peerform
The Peerform borrowing process is quick and simple, and you can use the loan proceeds for just about any purpose, including for business related needs.
Here are the highlights of the Peerform lending process:
Loan purpose. Peerform makes personal loans that can be used for a wide variety of purposes, including debt consolidation, credit card refinancing, home improvement, major purchases, car financing, business purposes, medical expenses, moving and relocation, wedding expenses, vacation, home buying, or other needs.
They also have a category referred to as a “green loan”. That’s where you take a personal loan and use it to purchase alternative energy equipment for your home. This typically can be something like solar panels for heat and hot water, or even the generation of electricity.
Loan amounts. Peerform will make loans that range in size $1,000 and $25,000.
Loan terms. All loans made through Peerform are for a term of 36 months. All loans are also fixed rate, installment loans that will be fully paid off at the end of the term. Peerform does not offer any other loan terms at this time.
Minimum borrower qualifications. In order to qualify for a loan with Peerform, you must have:
A minimum credit score of 600
No delinquencies, bankruptcies, tax liens, judgments, or non-medical related collections in the past 12 months
A minimum of one revolving account ever opened
A maximum debt-to-income ratio (DTI) of not more than 40% (not including mortgage debt)
A minimum of one open bank account
Although you don’t need to be employed, you do need to have an income which can be documented and verified. Also in regard to income, if you’re married, your spouse’s income cannot be used to qualify for the loan. Peerform provides personal loans, so you cannot include a cosigner for qualification purposes, nor make joint applications.
The loan application process. Peerform’s loan application uses a five step process:
Registration – This is an online registration that you can complete within a few minutes
Personal loan selection – After completing the online registration, the platform will review your information, and offer loan terms or alternatives.
Personal loan listing – After you have selected the loan terms that you want, your loan request is listed on the platform so that it can be evaluated by potential investors.
Verification – You will be asked to submit documentation that supports the information that you supplied in your registration form, or that will be needed to verify your identity.
The loan registration process will ask you to provide basic information, such as the loan amount you are requesting, the purpose of the loan, your credit score range, your full name, address, phone number, date of birth, email address, and annual salary and wages. You will then be asked to create a password.
Once you complete the registration form, you will be informed immediately if you qualify for a loan, and what the rate for that loan will be. Again, all loans are for a term of 36 months.
If you accept the offer, your loan request will be placed on the platform for investors to review and consider if they want to invest in it. You will also be taken through a step-by-step process to complete your application. Making application does not have any impact on your credit score.
Identity verification will involve you uploading copies of one of the following: your drivers license, military ID with photo, passport with photo, or US federal or state government ID. You will also be asked to verify your income. This will include two recent pay stubs, but they may also request recent tax returns and/or a copy of your bank statements.
Loan funding. In a best case scenario, your loan funds will be available shortly after the loan is put on the personal loan listing platform. However, all listed loans can remain on the platform for up to two weeks, which is known as the two-week listing period. You can track investor interest in your loan during the process.
But it is possible that your loan will not be fully funded within the two-week listing period. If it isn’t, you can either accept a lower loan amount (up to the amount funded), or you may need to reapply.
Interest rates and fees. Just like Lending club loans, interest rates with Peerfrom range between 7.12% APR and 29.99% APR. Rates are based on your Peerform Grade, and broken down into four alphabetic groups, each with its own rate range:
AAA, AA+, AA, A+ and A: 7.12% APR to 13.94% APR (credit score range: 700+)
BBB, BB+, BB, B+ and B: 14.86% APR to 19.44% APR (credit score range: 680 – 699)
CCC, CC+, CC, C+ and C: 20.87% APR to 26.92% APR (credit score range: 600 – 679)
DDD and DD+: 28.33% APR and 29..99% APR (credit score range: not indicated)
There are no application fees. There are however origination fees, typically 5.00% of the loan amount on all loans grades, except Peerform Grade loans AAA (1.00%), AA+ (2.00%) and AA (3.00%). The origination fee is deducted from your loan proceeds. For example, if your loan is $10,000, and the origination fee is 5.00%, you will receive net loan proceeds $9,500. The origination fee is payable only if the loan is issued.
The preferred loan repayment method by Peerform is by direct debits from your bank account. But you do have an option to pay by paper check. If you do, there is a $15 check processing fee for each check.
Late payments are assessed a fee of 5% of the monthly payment, subject to a $15 minimum per occurrence. There is also an unsuccessful payment fee in the event that your payment is refused. That fee is $15 per unsuccessful attempt, or a lesser amount as determined by state law.
There are no prepayment penalties in the event that you want to make a partial or full early payment on your loan.
Loan payments. You can repay your loan either by automatic draft from your bank account, or by mailing in monthly checks. However, Peerform does charge a fee of $15 per payment if you pay by check. There is no charge if you pay by automatic bank draft.
Site security. Peerform follows bank level security protocols, which includes encrypting and storing sensitive data in dedicated 24 hour maintain servers, which are protected with firewalls and housed in a secure facility. Servers are equipped with Secure Socket Layer (SSL) certificate technology to ensure encryption.
You also don’t need to concern yourself with the fact that investors will have access to your personal information. They will get only the information needed for investment purposes, but will not have access to any information that personally identifies you. In that way, you can apply for a loan anonymously, and not concern yourself that the information is available to someone who is either unintended or inconvenient, and certainly not for general public consumption.
Investing Through Peerform
If Peerform is a great place to get a loan, it’s also a rich source of investment opportunities.
Here is how investing through Peerform works:
Investor qualifications. In order to invest on Peerform, you must be an accredited investor. That’s an investor who is either high income or high net worth, or both, and who is generally recognized as a sophisticated investor who understands risk, knows how to invest into it, and is prepared to lose all of his or her investment (the temperament factor).
According to the US Securities and Exchange Commission, an accredited investor is defined as anyone who…
earned income that exceeded $200,000 (or $300,000 together with a spouse) in each of the prior two years, and reasonably expects the same for the current year, OR
has a net worth over $1 million, either alone or together with a spouse (excluding the value of the person’s primary residence).
.large-mobile-banner-2-multi-106border:none !important;display:block !important;float:none !important;line-height:0px;margin-bottom:15px !important;margin-left:auto !important;margin-right:auto !important;margin-top:15px !important;max-width:100% !important;min-height:250px;min-width:250px;padding:0;text-align:center !important;This differs from other P2P lenders. Prosper loan investors are allowed to start with as little as $25 to get started.
Investments offered. Peerform offers two types of investment products, whole loans and fractional loans. Whole loans are just what the name implies – you’re buying an entire loan. These investments are typically offered to institutions. Fractional loans are portions of loans, that are offered to individual investors.
These are not unlike investments on other P2P sites in which you can either invest in an entire loan, or in small pieces of many loans, commonly called notes.
All loans available for investment on Peerform are subject to analysis by the Peerform Loan Analyzer. The tool uses a highly advanced and dynamic algorithm for pricing loans. It uses empirical methods rather than filters (which are used on most P2P platforms) in order to better calculate consumer credit risk.
Custom portfolio. The portfolio enables you to diversify by customizing your investments to meet your needs. You can set investment goals, and the customization tool will outline how to invest your capital in order to reach your investment goals in the most concise way.
Fraud protection. Loan fraud is not uncommon and increases loan defaults, so Peerform takes extra steps to weed it out. In addition to requiring documentation to verify the borrower’s identity and income on the loan registration form, Peerform also uses both proprietary methods and commercially available licensed technologies and solutions to both detect and prevent fraud.
This includes third-party services such as Lexis Nexis for user identification, TransUnion for credit checks, and OFAC compliance.
Peerform also verifies that there is a variation of no more than 10% in the income stated by the borrower on the registration form, and that which is proven by the income documentation. If needed, IRS Form 4506T will be completed and sent to the IRS to verify the borrower’s income tax records. A small debit is taken from the borrower’s bank accounts, and verified by the borrower to make sure that the bank account is valid. The borrower’s phone number and email IP location are also verified.
Investment returns. Peerform offers rates of between 6.44% and 28.33% (net of origination fees). This rate range refers to returns before deducting for loan defaults, so your actual returns will be something less. .
Summary
Peerform is one of a growing number of P2P lending sites that also offers investment opportunities. The platform is using cutting edge technology to set the most accurate loan rates, which will also reduce the number of defaults that lowers the investment return on so many P2P lending sites.
With their sheer size and economic gravity, cities like New York or Los Angeles will always appeal to wealthy buyers. But newcomers to the scene like Austin, TX, Boise, IN, or Minneapolis, MN leverage economic vitality and fast growth across all sectors (employment, population, income levels, lifestyle) to make significant gains on the luxury home […]
The post Report: Luxury Buyers Gravitate Towards New Markets appeared first on Fancy Pants Homes.