Transaction Archives - Hanover Mortgages

January 14, 2022

How To Write a 30-Day Notice Letter To Your Landlord

Sending a notice to vacate to your current landlord will help ensure a smooth and easy transition to your next place.

You absolutely love your current apartment. Everything about it has been perfect, but you realize it’s time to move on. Even though your lease has a defined end date, it’s common courtesy to notify your landlord that you’re ready to move.

Submitting a 30-day notice letter to your landlord is the proper way to get the ball rolling. Not only will it ensure everyone is on the same page about you moving out, it makes sure you’re all on the same schedule.

Why do I give a notice to vacate?

One of the hardest things to remember about leasing an apartment is that it’s a legal transaction. You sign a legal document to move in, so you need to create a document when you want to move out.

A notice to vacate is the letter you give your landlord stating your intention to terminate your lease. The specifics of how to submit this letter — and when — is usually a part of your rental agreement. Even if your lease has a set end date and that’s when you’re moving out, submitting an official letter makes your intentions clear and avoids confusion.

Is a 30-day notice letter to my landlord the norm?

While it’s pretty standard to provide 30 days’ notice of your intent to move out, not every lease sets the notification period to the same amount of days. Some landlords may want more notice, transforming your 30-day notice letter to a 45- or 60-day letter.

Your lease provides any clarification you need on when to send this letter, so it’s best to check it well before you plan on moving out.

Thinking of what to include in a letter

What should the notice letter look like?

There are a few essential elements that belong in your notice to vacate letter and a few best practices to follow. First, make sure your letter has:

Your name, your current address and the date
The date on which you plan to move out
A forwarding address where your security deposit can go
Acknowledgment that a final inspection will occur

Additionally, it’s best if you:

Review your lease before writing your letter to check not only on a time frame to give notice but other requirements for moving out.
Type your letter rather than write it by hand. Use a pen for your signature, but typing the letter makes it easier to keep a record for yourself.
Keep the tone straightforward and polite. Stay on the topic of giving your notice and don’t bring up other issues or complaints.

Even if your lease doesn’t require you to send a formal letter if you’re moving out on the actual date your rental agreement ends, err on the side of caution and do so anyway. This gives you a paper trail and offers you legal protection should any issues arise down the road.

A 30-day notice letter template

This template can help you get started when it’s time to write your own 30-day notice letter to your landlord. Simply download the 30-day notice sample letter and replace the sections in parenthesis ( ) with your information.

(Your name)
(Street address and unit number)
(City, State and ZIP Code)

(Date)

(Landlord or property manager’s name)
(Property address)
(City, State and ZIP Code)

Re: Notice of Intent to Vacate

Dear (Landlord or property manager’s name),

This letter is to inform you of my official 30-day notice to vacate. I’d like to terminate the lease signed on (Month, Date, Year) for the property located at (Your address with apartment number). I will move out on (Date).

I will return my keys on (Move out date) to (Specific address) per the terms of my lease.

I’m also aware a final inspection of the apartment will take place, the results of which could potentially impact my security deposit. Please let me know, via email at (Your email address), if the full amount is not being returned. You can return my security deposit to (Forwarding address.)

Should you have any questions, or need to reach me after I move out, you can contact me at (Phone number) or (Email address).

Sincerely,

(Your name and signature)
(Apartment number)

Sharing why you’re moving out

This is an optional bit of information you can include in your letter. It’s not necessary to tell your landlord why you’re moving out, but sometimes it’s nice for them to know that it’s not the apartment driving you away.

If you’d like, add in a sentence to your letter along these lines: I’ve enjoyed living here and am moving out because of a (new job/relocation opportunity/roommate opportunity, etc.).

If you’re moving out because of an issue with the apartment and want to share it here, that’s OK, too, just try and remain diplomatic. You don’t want to use your letter as an opportunity to accuse your landlord of anything. Try something like: I’m leaving because of (a rent increase, issue with apartment). You don’t need to get really detailed, either.

Again, this additional line is completely optional and up to you entirely.

Hire a moving company

What happens after your notice to vacate?

Once you’ve submitted your official letter, it’s a good idea to reach out to your landlord and informally share your plans. You can also notify them your letter is coming and address any questions they may have without having to wait.

The next steps involve planning your move. If you haven’t found a new place to live yet, get searching. You may also want to schedule movers since you’ve now established your move-out day with your 30-day notice letter to your landlord.

What if I forget?

The biggest possible issue, should you forget to send a 30-day notice letter to your landlord, is penalties. You could end up on the hook for extra fees as high as another month’s rent. You could also end up dealing with an automatic lease renewal, which means having to break your lease to move out. This could lead to even more charges and potential problems since you’ve missed your window to easily vacate the apartment.

To avoid forgetting, as soon as you know you’re going to move, set a reminder for yourself to give 30-day notice and mark the cut-off date in your calendar. Give yourself as many ways as possible to get that letter sent.

Handling the termination of your lease right

Moving from one home to another is always full of little details. From scheduling movers to packing all your stuff, the weeks leading up to a move are busy.

Before you get into the weeds of your actual move, take the right steps to properly prepare your landlord. That all starts by giving notice of your intent to vacate. It will be the easiest and the less time-consuming thing you have to do during the move-out process and could make a big difference.

Source: rent.com

January 13, 2022

Could Brewing Coffee at Home Make You a Millionaire?

It’s a bit of a cliche to say that all you need to do to become a millionaire is cut out your daily latte and unused gym memberships, invest it in the stock market and sit back for 30 years. Saving for retirement, like most things in life, takes hard work and discipline. But there are two important nuggets of truth in that old cliché. It’s usually the simple changes to your habits that are the most long lasting, and compound interest is an amazing tool.

So in honor of National Coffee Day, let’s take a look at how brewing coffee at home might help you get closer to your million dollar savings goal.

How does buying coffee tie into your spending for joy?

The first thing to ask yourself is how much joy does coffee bring to your life. Then you can give some thought to what it is about coffee that you enjoy. Is it the energy from the caffeine? A specific flavor or experience? The act of being social with others? That will help you decide

If you like to have the caffeine but you don’t need a fancy cup of coffee to bring joy to your day, consider brewing it at home or cutting it out of your life
If it’s medium, maybe you can find ways to balance how you treat yourself vs. how frequently you pick up a latte. You could cut the habit back to twice a week – perhaps reward yourself on Mondays for kicking off the week and on Fridays for closing it!
If coffee brings you a lot of joy, maybe it’s better to cut back on other things. After all, the whole point of a budget is to save money on things you don’t find important so you still have money left to spend on the things that are important to you.

Mint has worksheets that allow you to compare your spending in various categories to the level of joy you feel you got from that spending. That can help you decide if your budget is calibrated towards the things that bring you the most overall happiness.

How to turn your daily cup of coffee into micro investments

Could you turn your coffee habit into a savings habit? Auto-invest debit cards and micro investing might help you get the best of both worlds. Micro investing allows you to invest in super small increments by buying fractions of shares.  This form of investing helps to maximize your money’s growth potential, so rather than your money sitting in a bank account with no return to lose value over time, micro investing can help give your money a chance to increase with inflation and retain or grow in value. Recently, micro-investing apps like Acorns have been growing in popularity by allowing users to easily invest and save starting with their spare change.

One feature of Acorns is the ability to round up your purchases to the next whole dollar and invest the difference. When you sign up to the Acorns Round-Ups® feature, your spare change gets automatically invested into a diversified, ETF portfolio. This can be a great way to invest a small amount on a consistent basis and help build good financial habits. Acorns also gives additional bonus investments when you shop with one of their brand partners, including Bulletproof coffee, Peet’s and Coffee Bean, so you can save and invest more. Sign up for Acorns here to get a $10 bonus investment when you start.

How much could you get from investing your coffee money?

So, what does the actual math look like of compounding your coffee money in the stock market until you retire? While there are a lot of different variables involved, here are two examples.

Example 1: Ditching your fancy latte

$4 daily coffee — replacing it with nothing (drink water instead)
20 coffees per month
8% average annual return on investment

After 40 years, your coffee money has turned into $248,694.26! Not quite enough to make you a millionaire, but you’re well on your way.

Example 2: Rounding up

30 debit card transactions per month
Average of 50 cents of roundup per transaction, invested.
8% average annual return on investment

After 40 years, rounding up all of your transactions each month has netted you $46,630.17. Not bad for your spare change that you probably didn’t even miss.

While neither of these scenarios are likely to solve all of your retirement needs, that’s not what their intent is. Instead, plans like this allow you to be more focused on where your money goes and where you want it to go.

The Bottom Line

Coffee is something that many people drink on a daily basis and there are a large variety of different ways (and costs) to drink your coffee. Even if you don’t drink coffee, you may have other similar habits in your life — tea, soda, a daily afternoon snack or regular lunches out. None of these things are necessarily bad — instead, you just want to make sure that your spending is matching up with your overall life priorities. Using an app like Mint can help you regularly review your spending and make sure it’s helping you get where you want to go.

Learn more about security

Source: mint.intuit.com

January 13, 2022

Bank Overdraft Fee Changes Continue in 2022

Bank of America is reducing overdraft fees from $35 to $10, joining other banks that have reduced or eliminated penalties since 2021. Steven Senne/AP Photo

Bank of America and Wells Fargo have jumped on the bandwagon to eliminate overdraft penalties, though they aren’t riding all of the way yet.

The nation’s No. 2 and 3 banks announced in January that they will give customers a break on high penalties for overdraft fees but unlike other U.S. Banks did in 2021, they aren’t eliminating them completely.

Bank of America is slashing overdraft fees from $35 to $10, making it the first of the Big Four U.S. banks (JPMorgan Chase, BofA, Wells Fargo and Citibank) to lower extremely high overdraft penalties. It also announced intentions to drop bounced check fees.

Wells Fargo followed suit, announcing that it will give customers 24 hours to make good on overdrafts and negative balance accounts before enforcing such fees. It is eliminating its $35 penalty for returned items because of non-sufficient funds but has not budged on the $35 overdraft penalty.

The Bank of America action is scheduled to begin in May. Wells Fargo’s new rules will be in effect by the third quarter of 2022.

Bank of America will also no longer let customers overdraw their accounts from ATMs and is eliminating the $12 penalty when they use overdraft protection that moves money from one account to another to avoid “bouncing a check.”

While check-writing has steadily declined among consumers, automatic debits, such as those often required by utilities, can put an account into negative balance without the customer being aware it happened.

“This is the final step in the journey we’ve been on,’’ Holly O’Neill, president of retail banking at Bank of America, told the Associated Press. “We have good financial solutions for clients without them having to rely on overdraft, but we will still have overdraft if it is needed.”

Check out our Wells Fargo review for a full run-down of the bank’s features and offerings.

The changes are not likely coming out of the goodness of their banking hearts. During the pandemic, the banking industry has come under fire from the Consumer Financial Protection Bureau (CFPC) and other regulators for the vast amounts of money it has made from penalty fees, especially from people who had lost jobs.

People walk past a Wells Fargo bank in St. Petersburg, Fla. — Wells Fargo will give customers 24 hours to make good on overdrafts and negative balance accounts before enforcing overdraft fees. Tina Russell/The Penny Hoarder

JPMorgan Chase, Wells Fargo and Bank of America, according to the CFPB, raked in 44% of the $15.47 billion in overdraft revenue collected in 2019.

The Trend to Cut Overdraft Penalties

Capital One, one of the top 10 banks in the U.S., eliminated overdraft fees in December 2021.

Overdrafts can still occur at Capital One, but customers will not be charged for doing so. Customers can also opt into an overdraft protection program at Capital One and will not be charged for the service.

Check out our Capital One review for a full run-down of the bank’s features and offerings.

In summer 2021, online banking giant Ally Bank made headlines for eliminating its overdraft fees, and Alliant Credit Union, another major financial institution, followed shortly after.

Capital One, Bank of America and Wells Fargo are different from Ally and Alliant, however, because of their sheer size.

Capital One is the nation’s sixth largest retail bank and for barely a month it was the only one in the top 10 to eliminate overdraft and non-sufficient funds fees. Then Bank of America and Well Fargo made their announcements.

The elimination of overdraft fees is just one of the banking trends to keep an eye on in 2022.

If you are considering switching banks, think about one that offers a cash bonus for new customers. We gather the best bank promotions each month.

Banks and Credit Unions That Don’t Charge Overdraft Fees

These eight financial institutions — banks, credit unions and cash management services — do not levy overdraft fees:

*Fidelity’s account is a cash management account, which is slightly different from a traditional checking account and is built for those using Fidelity to invest. Betterment is also a cash management service which offers investing programs and a mobile-first checking account.

**KeyBank’s overdraft protection for its Hassle-Free Account results in a declined transaction. No fees, but also declined payments for things like rent and utilities can still result in late fees for those struggling with finances.

Kent McDill is a veteran journalist who has specialized in personal finance topics since 2013. He is a contributor to The Penny Hoarder. Reporting from Penny Hoarder contributor Timothy Moore is included in this report.

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Source: thepennyhoarder.com

January 12, 2022

Best Money Transfer Apps of 2021

Money transfer apps have changed how we pay each other. Also called peer-to-peer (P2P) payment apps, money transfer apps allow users to send and receive money using their smartphones or an online platform, simply by linking their checking account or credit card.

Transferring money via smartphone app is safe, easy and convenient, but not all apps are created equal. The best money transfer apps of 2022 set themselves apart with low (or no) fees to transfer cash, immediate transfers, heightened security measures and strong customer service. You can also rely on ratings in the Apple App Store and Google Play to determine if a money transfer service is up to snuff.

How Money Transfer Apps Work

Money transfer apps are an easy, secure way to exchange money between friends or family. By downloading an app on your phone, or in some cases going to a website, you can send money to people. All you need is their mobile phone number or email address.

The apps are linked to bank accounts, debit cards or credit cards, which is how they access your funds and transfer money with just a few taps. Some payments are free, but others have fees, which often depends on how you fund the transfer.

When someone sends you money through the app, you can get access to the money by initiating a transfer to your bank account. Some apps allow you to store money with their service for easy access.

These types of apps are not the same as the payment-processing apps businesses use for transactions, but some companies do offer both.

All of the apps are available wherever you usually get apps for your phone.

What to Look for With Money Transfer Apps

When looking at the different apps, here are some things to look for.

Fees: Some apps charge a fee for paying someone by credit card or sending money internationally.
Transfer time: How long does it take to get your money? Some are instant while some take some time.
Security: Is the transaction encrypted on both ends?
Limits: Some apps limit the number of transactions you can do in a set period of time. Others limit the amount of money you can send.
Customer service: How can you contact someone if there is a mistake with a transfer or a transfer happens that you didn’t authorize?
Protection: Unlike bank accounts, many balances in money transfer apps are not insured against loss or fraud.
Correct information: Always double-check the recipient’s information before you confirm a payment. Once you send a payment, is it often impossible to get it back unless the recipient refuses it.

How the Best Money Transfer Apps Stack Up

The best app for you might not be the best for someone else. It all depends how you plan to use them. Chances are, you’ll use different ones for different purposes.

Money Transfer Apps at a Glance

App	Top Feature	Best For
PayPal	Widely used	Freelancers/biz owners	GET DETAILS
Venmo	Social media feel	Everyday users	GET DETAILS
Zelle	Built into bank apps	Fee-free transfers	GET DETAILS
Cash App	Special in-app offers	Cryptocurrency investors	GET DETAILS
Facebook Pay	No fees	Facebook users	GET DETAILS
Apple App	Retail shopping	Apple users	GET DETAILS
Google App	Retail shopping	Android users	GET DETAILS

Zelle

Most Accommodating Money Transfer App

5 out of 5 Overall

Key Features

Free instant transfers
Built into banking apps
Strong security measures

Zelle is part of most banking apps and allows you to securely send money almost instantly between bank accounts. It works with hundreds of U.S. banks and credit unions. Each bank determines the types of accounts that are eligible to be part of Zelle. You cannot link credit cards, international debit cards or international bank accounts to Zelle.

Zelle Money Transfer App

Fees for domestic transfers

n/a

Fees for instant transfers

n/a

Apple app store rating

4.8 stars

Google Play rating

4.3 stars

More Information About Zelle

How it works: You need an email address or a phone number to send money. The sender and recipient don’t need to be customers of the same bank; they only need to both be enrolled in Zelle.

In most cases, you’ll need your regular online banking user name and password to enroll and link accounts within Zelle. However, if you want to use the Zelle app — instead of initiating transfers using your bank’s app — you’ll need a separate login.

If you don’t have a smartphone, you can also send money using Zelle at your bank’s website.

Fees: Zelle charges no fees for sending or receiving money. However, individual banks might have a fee.

Pros/Cons: The fact you probably already have the capability of using Zelle within your online or mobile banking app or line is a definite plus. The only thing you need to do is to sign up using an email or mobile phone number and you can start sending and receiving money right away. The fact transfers are also almost immediate is a good thing because you get paid quickly; just make sure you’re sending money to the right person. It is not possible to use a credit card with Zelle, just linked bank accounts.

Cash App

Most Global-Friendly Money Transfer App

4.5 out of 5 Overall

Key Features

Special offers
Cryptocurrency options
Strong security measures

Cash App sets itself apart in a couple of ways. For one, it not only handles regular currencies; it also handles cryptocurrency. You can also get special offers called “cash boosts,” which can include discounts like 20% off DoorDash or 15% off Chipotle. The cash boosts change regularly, which many users say makes the app worth checking out on a regular basis.

Fees for domestic transfers

n/a

Fees for instant transfers

1.5%

Apple app store rating

4.7 stars

Google Play rating

4.6 stars

More Information About Cash App

How it works: To send money, you need to know the recipient’s email address, phone number or unique ID the app calls a $cashtag.

When you sign up, you’ll need to link at least one bank account to the app. You can also store funds in the app.

Fees: There are no fees to send or receive money between friends if you have a linked bank account or debit card with accepted financial institutions. There is a 3% fee to send money using a credit card.

Like the other apps, Cash App is secure, and transferring your money to your bank account is free but can take a few days. Instant cash outs will cost 1.5% with a $0.25 minimum.

Cash App allows you to use your money to buy stocks or convert dollars to Bitcoin, but there are fees associated with these services.

International transfers: Cash App is mostly used within the United States, but it can also be used to facilitate transfers between the US and the United Kingdom.

Pros/Cons: Cash App markets itself as more than just a money transfer app. The app also has a banking-type feature that allows users to receive their paychecks and other direct deposits earlier than most banks. But be aware, the money you leave in the app isn’t insured. While Cash App is growing in popularity, you won’t find as many users with the app as you would with competitors like Venmo.

PayPal

Most Experienced Money Transfer App

4.5 out of 5 Overall

Key Features

Free domestic transfers
Great tools for freelancers
Strong security measures

PayPal is the grandparent of money transfer apps, as it’s been around the longest and is probably the most familiar to many people. It’s ideal for anyone with a side hustle, as it’s simple to send invoices.

PayPal Money Transfer App

Fees for domestic transfers

n/a

Fees for instant transfers

Apple app store rating

4.8 stars

Google Play rating

4.4 stars

More Information About PayPal

How it works: PayPal is secure, and you can send money domestically and internationally, although fees apply for international transfers. You can also use PayPal online and through the phone app. To send money via PayPal, you’ll need to know the email address or mobile number of the person you’re sending money to. Both the payer and the recipient will need PayPal accounts to transfer money. People can also request payments through PayPal.

Fees: The fee structure for PayPal can get confusing. You won’t pay any fees if you’re sending money from a linked bank account or through the app. However, if you want to use a credit or debit card, you’ll pay a 2.9% fee (plus a transaction fee if you’re using a currency other than the U.S.). Those transaction fees vary.

Transferring your PayPal balance to a linked bank account is free, but can take a few days. Instant transfers are available for a 1% fee. You can also have PayPal mail a paper check to you for $1.50.

International transfers: You can transfer money internationally, but if you’re sending money to someone outside of the U.S., be aware that you’ll be subject to a different fee structure. PayPal also offers business accounts for different fees.

Pros/Cons: PayPal has protections in place to keep you from losing money. If either the sender or recipient has an issue, PayPal will put a hold on funds. PayPal’s fees are on the higher end, especially for business users.

Venmo

Most Like Social Media Money Transfer App

4.5 out of 5 Overall

Key Features

Free domestic transfers
Widely used service
Strong security measures

Venmo has a social media feel, including a feed that allows you to share who you paid and what you paid them for. (You can even use emojis!) Venmo is among the most popular money transfer apps, meaning it’s likely your friends and family also use it. It’s a secure way to pay while also connecting you with the people you pay. (Venmo’s parent company is PayPal.) If you’re not interested in publicizing your financial transactions with friends and family, you can turn this option off.

Venmo Money Transfer App

Fees for domestic transfers

n/a

Fees for instant transfers

1.5%

Apple app store rating

4.9 stars

Google Play rating

4.2 stars

More Information About Venmo

How it works: You can send money to anyone, as long as they also have a Venmo account; due to its popularity, you’re more likely to find Venmo users than users of other P2P cash transfer apps. To transfer, you just need their mobile number or email address. Users can also request payments.

Fees: Venmo is secure and is free to send money using a balance within the Venmo app, linked bank account, debit card or prepaid card. You’ll pay a 3% fee when you use a credit card to send money.

Transferring money from Venmo to your linked bank account is free with a standard transfer. This could take some time, usually 1-3 business days.

If you’re short on time, you can initiate instant transfers, which carry a 1.5% fee or a minimum of $0.25 and a maximum of $15. Venmo users can also buy or sell cryptocurrencies with fees attached.

International transfers: Both sender and receiver need to have US bank accounts, so sending money abroad isn’t possible.

Pros/Cons: The fact that Venmo feels like social media can be good or bad, depending how you look at it. Others you are connected to will know who you’re conducting business with and when. For those of us who are bad at math, a function of the app will help you split bills. It’s also easy to request money from people within the app.

Facebook Pay

Most Socially Connected Money Transfer App

4 out of 5 Overall

Key Features

Built into Facebook (Meta) properties
No fees
Good customer service

If you want to send money to people you’re already connected with on Facebook, Messenger, Instagram, Portal and WhatsApp (in limited places and eventually more), Facebook Pay might work for you. You can also use Facebook Pay to buy many items you see in Facebook or Instagram ads or from Facebook Marketplace or Facebook Shop. You can even use it to donate to a cause or make in-game purchases. One big difference between Facebook Pay and other money transfer apps is you cannot link it directly to a bank account. Instead, you connect the service to a credit card, debit card or PayPal account.

Facebook Pay Money Transfer

Fees for domestic transfers

n/a

Fees for instant transfers

n/a

Apple app store rating

n/a

Google Play rating

n/a

More Information About Facebook Pay

How it works: Facebook Pay isn’t a standalone app, but rather an enhancement to those primary social media apps, so you’ll need to set it up in each app. To set up Facebook Pay:

Instagram

You can first set things up on Facebook or Messenger and then connect the payment info through the Instagram app, or you can set it up directly in the Instagram app.

Messenger

You can connect your Facebook Pay information to Messenger or set it up in the Messenger app. Once everything is working, you just attach a payment like you attach a photo.

Portal

Just connect your existing Facebook Pay information to Portal or you can do it separately.

Facebook Pay is secure, but if you want added security, you can create a PIN or use your device’s biometrics security every time you make a payment.

Fees: There is no fee to send or receive money through Facebook Pay.

International transfers: Facebook Pay is expanding to other countries outside of the United States.

Pros/Cons: It’s super-convenient to be able to send money, donate money, and buy from whatever app you might be using and familiar with. You might want to set up extra security features just in case someone gets a hold of your accounts. Customer support is available 24/7 via chat or email. Facebook’s parent company, Meta, continues to face controversy for how it handles private information; carefully consider adding banking information to your account.

Google Pay and Apple Pay

Most Adaptable Money Transfer Apps

4.5 out of 5 Overall

Key Features

Designed for your phone’s OS
Widely accepted at retailers
Strong security measures

Google Pay and Apple Pay started as ways to store your personal payment information, like credit and debit card numbers, and to make contactless payments using your phone and an encrypted number instead of your actual credit card number.

Google Pay and Apple Pay

Fees for domestic transfers

n/a

Fees for instant transfers

n/a

Apple app store rating

n/a

Google Play rating

n/a

More Information about Google Pay/Apply Pay

How they work: Originally designed as digital wallets, Apple and Google Pay now also handle peer-to-peer payments, which means you can send or receive money if you have the other person’s email address or phone number.

Google makes peer-peer-payment using debit card information. The app has a rewards program where you can earn cashback rewards if you activate certain offers. Some offers might include cash back with a minimum spend at places like REI, Target or Warby Parker.

Apple goes a step further and allows you to pay someone in the iMessages messaging app. Apple Pay is built into devices, so there is no separate app to download. Apple says more than 85% of retailers in the United States accept it.

Fees: No fees for transfer of money to family or friends and also no payment when you use the app to pay for purchases.

Pros and Cons: The apps are easy to set up and use and they keep a good record of what you’ve spent and where. Security is top-notch with either option. Some users say the communication about platform changes along with terms and conditions could be better.

Transferring Money Internationally

While some of the above money transfer apps can be used to transfer internationally, other apps and websites focus primarily on transferring large sums of money internationally. Check exchange rates in each app when you send money internationally.

Beware: Fees for international money transfers can be high. However, popular apps for international money transfers are:

WorldRemit: People in more than 50 countries can send money to people in more than 130 countries using a phone or computer. Many of the transfers happen instantly. Fees vary. One recent change is WorldRemit no longer accepts Google Pay.
Western Union: Has been around for years and works in more than 200 countries and territories.
OFX: Competitive rates compared to banks and has a minimum of $1,000.
Azimo Money Transfer: The first two transfers are free. Instant or one-hour transfers are possible to many countries.
Remitly: This app adds the possibility of physically delivering the money to the recipient’s home instead of just a cash pickup or depositing it into a bank account. The rates vary by country.

Money Transfer Etiquette

In today’s world of instant gratification and constant connections, what is proper money transfer etiquette?

In July 2019, Venmo surveyed 1,000 users and then partnered with an etiquette expert to help create some modern money manners.

Here are a few of the survey’s findings:

75% said it’s appropriate to wait 24 hours before issuing a request for payment.
24 hours is the longest you should wait before paying someone.
42% said the person who pays for dinner when the check comes back for the entire group should be paid immediately — before anyone leaves the table.
24% said no amount is too small to ask for, even $1 to $5.

As for advice from the etiquette expert, Venmo suggests:

Practice social awareness: When using apps that have a social component, be careful of emojis and inside jokes that could embarrass someone. You never know who might see it.
Respond quickly: If you can’t pay someone within 24 hours, send the person a text or email saying why you can’t pay them back.
Stay in contact: Don’t just ghost someone and make your friends and family track you down. It isn’t fun.
Discuss: If you’re going to split payments, discuss this plan before an event. Don’t surprise someone with a money request. Also, if you pick up the check and say something like “I got this,” don’t expect people to pay you back.
Correct mistakes: If a money request has the wrong amount, politely point out the discrepancy, and decline the transaction. Send back money if someone sends you more than you were expecting.

The survey also found 65% of people say it’s more stressful to owe someone money than to be owed money. The money transfer apps make it easy to relieve that stress — by paying up.

Frequently Asked Questions (FAQs) About Money Transfer Apps

We’ve rounded up answers to some of the most popular questions about money transfer apps so that you can decide which one is right for you.

What is the Safest App to Transfer Money?

All of the apps mentioned have several security features in place to keep your account numbers and personal information private. Just make sure you send money to the right person. Once you tap send, it’s sometimes difficult to get the money back.

What is the Best Money Transfer App?

Each of the money transfer apps on our list is a strong performer. Deciding which app is right for you comes down to your preferences, including smartphone operating system, security protocols and fees for instant transfers.

What Money Transfer App Is the Fastest?

Zelle provides instant transfers between bank accounts for free. Most of the other apps will do instant transfers, but there is a cost associated with them.

What Happens If I Send Money to the Wrong Person?

Sadly, that depends on the app. In some cases, you can contact customer service and they can help reverse the process. In others, you have to rely on the honesty of the wrong recipient to decline the transfer.

Do I Need a Smartphone to Use Money Transfer Apps?

It depends. If your bank or credit union uses Zelle, you can often send and receive money from the financial institution’s website. It’s similar for PayPal. Venmo has some services available online, but not all.

What Is the Cheapest Money Transfer App?

All the apps on our list offer free transfers. However, if you need money right away, most apps charge a fee to transfer funds instantly.

Tiffani Sherman is a Florida-based freelance reporter with more than 25 years of experience writing about finance, health, travel and other topics. Timothy Moore covers banking and investing topics for The Penny Hoarder.

Source: thepennyhoarder.com

January 11, 2022

What Is a Naked Put Options Strategy?

A naked put option, also known as an “uncovered put,” is a risky options strategy in which a trader writes (i.e. sells) a put option with no corresponding short position in the underlying asset. While this strategy allows the trader to collect the option premium up front, in hopes that the underlying asset will rise in value, it carries significant downside loss potential should the price of the underlying asset decline.

Here’s what you need to know about naked put options:

Understanding Naked Put Options

As a refresher, the buyer of a put option has the right, but not the obligation, to sell an underlying security at a specific price. On the flip side, the seller of a put option is obliged to purchase the underlying asset at the strike price if and when the option buyer chooses to exercise.

Writing a naked put means that the trader is betting that the underlying security will rise in value or hold steady. If, at the option’s expiration date, the price of the underlying security is above the strike price, the options contract will expire worthless, allowing the seller to keep the premium. The potential profit of the trade is capped at the initial premium collected.

The risk of a naked put option trade is that the potential losses can be much greater than the premium initially gained. If the price of the underlying security declines below the strike price, the option seller can be forced to take assignment of shares in the underlying security. The options seller would then have to either hold those shares, or sell them in the open market at a loss (since they were obligated to purchase them at the strike price).

Recommended: Buying Options vs. Stocks: Trading Differences to Know

Requirements for Trading Naked Put Options

Investors have to clear some hurdles before being able to engage in a naked put transaction.

Typically, that begins with getting cleared for margin trading by their broker or investment trading firm. A margin account allows an investor to be extended credit from their trading firm in order to actually sell a naked put.

There are two main requirements to be approved for a margin account in order to trade naked put options.

• The investor must demonstrate the financial assets to cover any portfolio trading losses.

• The investor must declare they understand the risks inherent when investing in derivative trading, including naked put options.

Selling Naked Puts

A trader initiates a naked put by selling (writing) a put option without an accompanying short position in the underlying asset.

From the start of the trade until the option expires, the investor keeps a close eye on the underlying security, hoping it rises in value, which would create a profit for them. If the underlying security loses value, the investor may have to buy the underlying security to cover the position, in the event that the buyer of the put option chooses to exercise.

With a naked put option, the maximum profit is limited to the premium collected up front, and is obtained if the underlying security’s price closes either at or above the option contract’s strike price at the expiration date. If the underlying security loses value, or worse, the value of the underlying security plummets to $0, the financial loss can be substantial.

In real world terms, however, the naked put options seller would see the underlying security falling in value and would likely step in and buy back the options contract in advance of any further decline in the security’s share price.

Naked Versus Covered Puts

We’ve mentioned a few times so far that in a naked put, the trader has no corresponding short position in the underlying asset. To understand why that is important, we need to talk about the difference between covered puts and naked puts.

A covered put means the put option writer has a short position in the underlying stock. As a reminder, a short position means that the investor has borrowed shares of a security and sold them on the open market, with the plan of buying them back at a lower price.

This changes the dynamics of the trade, compared with a naked (uncovered) put. If the price of the underlying security declines, losses incurred on the put option will be offset by gains on the short position. However, the risk instead is that the price of the underlying security could move significantly upward, incurring losses on the underlying short position.

Recommended: The Risks and Rewards of Naked Options

Example of a Naked Put Option

Here’s an example of how trading a naked put can work:

XYZ stock is trading at $50 per share. Alice, a qualified investor, opts to sell a put option expiring in 30 days with a strike price of $50 for a premium of $4. Typically, when trading equity options, a single contract controls 100 shares – so the total premium, her initial gain, is $400. If the price of XYZ is above $50 after 30 days, the option would expire worthless, and Alice would keep the entire $400 premium.

To look at the downside scenario, suppose the price of XYZ falls to $40. In this case, Alice would be required to buy shares in XYZ at $50 (the strike price), but the market value of those shares is only $40. She can sell them on the open market, but will incur a loss of $10 per share. Her loss on the sale is $1,000 (100 x $10), but is offset by the premium gained on the sale of the option, bringing her net loss to $600. Alternatively, Alice could choose not to sell the shares, but hold them instead, in the hope that they will appreciate in value.

There’s also a break-even point in this trade that investors should understand. Imagine that XYZ stock slides from $50 to $46 per share over the next 30 days. In this case, Alice loses $400 ($4 per share) after buying the shares at $50 and selling them at $46, which is offset by the $400 gained on the premium.

The maximum potential loss in any naked put option sale occurs if XYZ’s stock price goes to $0. In this instance, the loss would be $5,000 ($50 per share x 100 shares), offset by the $400 premium for a net loss of $4,600. Practically speaking, a trader would likely repurchase the option and close the trade before the stock falls too significantly. This can depend on a trader’s risk tolerance, and the stop-loss setting on the trade.

The Takeaway

The big risk of a naked put option trade is that the potential losses can be much greater than the premium initially gained, while the maximum profit is limited to the premium collected up front. The seller of an uncovered put thinks the underlying asset will rise in value or hold steady.

Like most options trading strategies, the complexity of naked options trading and the associated risks make it a strategy that’s typically best for experienced traders. There are plenty of less risky ways for beginner investors to start building a portfolio. One way to do just that is by opening a brokerage account on the SoFi Invest trading platform. Using the SoFi app, you can select company stocks, exchange-traded funds and fractional shares to build your portfolio, or you can opt for the automated features which build a portfolio on your behalf.

Photo credit: iStock/damircudic

Source: sofi.com

January 11, 2022

[Update] U.S. Bank Launches New Altitude Connect Card With 50,000 Point Bonus (Worth $500)

(Update 1/10/22: Spend requirement now lowered from $3,000 to $2,000. Same bonus. Hat tip to reader Brian)

After much delay U.S. Bank has finally launched the new Altitude Connect card with a 50,000 point bonus (worth $500). Let’s take a look at the basics of this card:

50,000 point bonus after $3,000 in spend within the first 120 days
Card has $95 annual fee, fee is waived the first year
No foreign transaction fees
Card earns the following rates:
- 4x on Travel and at Gas Stations
- 2x on Dining, Takeout, Groceries, and Streaming Services
- 1x everywhere else
$30 free month of streaming for annual streaming services. Annual streaming credit works as follows: after 11 months of consecutive streaming service charges, the 12th month will get the $30 credit.
- You can combine different services, e.g. if you were subscribed to Netflix for 8 months and then to Hulu for 3 months, the following month of streaming will be credited back.
- Amazon Music, Apple Music, AT&T TV Now, Disney+, Google Music, Hulu, Netflix, Pandora, SiriusXM, Slacker Radio, Sling TV, Spotify, Tidal, Vudu, YouTube Music and YouTube TV are all mentioned clearly to work.
Cell phone protection similar to the US Bank Platinum card; $600 coverage with $25 deductible.
Precheck or global entry credit.

Our Verdict

Card is worth considering for the 50,000 point sign up bonus (worth $500) especially as the annual fee is waived first year. Don’t think it makes sense to keep long term with that $95 annual fee and poor benefits but there might be some rare use cases for the 4x categories (other cards do earn at a higher rate on gas purchases though). Given that U.S. Bank credit cards can be difficult to get approved for, it might make more sense to apply for the U.S. Altitude Reserve depending on how much value you get out of the other benefits on that card. This is still a strong second (or first option depending on how you value the Reserve benefits) and will be added to our best credit card bonus page.

Source: doctorofcredit.com

January 11, 2022

What is APR: Hereâs how Annual Percentage Rate works

Source: thepennyhoarder.com
Credit cards also often have multiple APRs depending on the type of transaction. These different transactions also have different grace periods, a period between the account closing date and your due date where you can pay off your purchases without penalty (aka interest).

What Is APR?

APR (annual percentage rate) and APY (annual percentage yield) are easily confused with each other. Knowing the differences can earn you big financial dividends and save you from unexpected financial costs.
Because the APR takes into account some of the fees of a loan, APR is often a more accurate representation of the cost to borrow than the interest rate alone.
It’s important to understand how much a loan or outstanding balance on your credit card will actually cost you. Every bank has different margins and interest rates, but the overall concept is the same.
APR calculations often begin with an index rate that reflects the economic conditions at the time. Credit cards then add a fee on top of that called a margin for using their service. This margin depends greatly on the cardholder’s credit score. People with good credit scores are offered better APRs than those with bad credit scores. Because of this, it’s important to understand how to improve your credit score. There are a lot of ways to raise your score, but here is a list of the simplest and most common:

The Two Types of APR

Essentially, the higher the APR the higher cost to borrow and vice versa. While not all fees are included, APR is a good place to start comparing lines of credit.
While it is possible for this rate to change, the lender is required by the Consumer Financial Protection Bureau (CFPB) to notify you in writing.
This means that every day a balance is carried over, you are charged .0712%, which for 0 is approximately 50 cents a day. While that seems small, the interest quickly begins to build. If the card’s bill is assessed monthly, then take that rate and multiply it by the number of days in the month.
Both APR and APY are ways to demonstrate interest rates. As we’ve been over, APR is the annual percentage rate and demonstrates the combined yearly cost of interest and fees for a loan. APY is the annual percentage yield and similarly combines interest and fees but also takes into account the effects of compounding interest.
Variable APRs are tied to an index interest rate, such as the Prime Rate from the Wall Street Journal. This underlying rate fluctuates with economic conditions and, therefore, variable APRs fluctuate as well. Basically, when the index rate goes up, your variable APR goes up.
If you’re still thinking about APR, keep reading to see our answers to the most frequently asked questions.

The APR Terms You Need to Know

Balance transfer APR is the interest rate charged when you transfer a balance to your credit card. Some cards offer low promotional balance transfer APRs–just be aware that once the promotion is over you’ll be charged the regular balance transfer APR on the remaining balance.
25.99% ➗ 365 days = .0712%

Purchase APR

Contributor Whitney Hansen writes for The Penny Hoarder on personal finance topics including banking and investing.Writer Sarah Kutra contributed to this report.

Balance Transfer APR

Multiply this new monthly rate by the 0 balance being carried over and holding this balance will cost roughly .45 that month.

Cash Advance APR

Most credit cards use variable APRs and while you can find guidelines in the cardholder agreement as to when the APR can change, the lender is not required to inform you as to when the rate changes.

Penalty APR

If you’ve been researching new credit cards or looking at refinancing your home loan, you’ve probably noticed the term APR popping up everywhere. APR stands for the annual percentage rate and, in terms of need-to-know financial information, understanding APR is pretty high on our list.

Introductory APR

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The Difference Between APR and APY

Cash Advance APR is the interest rate charged for the privilege of borrowing cash from your credit card. Normally this APR is higher than the Purchase APR, and there is no grace period.
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Credit and loans are a part of modern life so APR isn’t going anywhere. While you might be the type of borrower who pays your credit bill in full every month, there may be times in your life when you can’t avoid paying interest completely. In these moments, understanding APR will help you be an informed borrower.
Before opening a new line of credit, it is worth it to do some simple math like this to understand the cost of that credit.
Introductory APRs are normally very low rates that apply for a set period of time. Just make sure that you know the timeline and what the APR will be after the promotional period has ended.

How to Calculate APR’s Cost to You?

Penalty APR is the interest rate charged when you violate the conditions of the cards like making a late payment. Not all cards have a Penalty APR, but if it does, it’s normally the highest APR.
APR stands for annual percentage rate. It represents the yearly interest and associated costs of a loan by including loan-specific fees like the loan origination fees or mortgage insurance. You’ll find APR listed for credit cards, auto loans, mortgage loans, personal loans, and most other lines of credit. In fact, lenders are required to disclose a loan’s APR to the borrower thanks to the Truth in Lending Act (TILA).
The important thing to know is that just because you’re seeing the APR doesn’t mean you’re free from the effects of compounding interest.
.0712% ✖ 31 days = 2.21%
In this article, we’ll go over the basics of APR–what it is, how to calculate it, and how to improve it — so that you can be an informed borrower.

There are two types of APR: fixed APR and variable APR.
And as you make those decisions, here’s the key takeaways to keep in mind:

What Determines the APR You’re Offered?

If you pay off your interest from your loan or credit card balance each billing period, then your APR will be an accurate representation of your costs. If you carry a balance, however, then the cost will be more than the APR represents because you will now pay interest on the interest you were charged — aka, compounding interest. That’s where APY, which already includes compounding interest, becomes more helpful.

Establish credit
Pay your bills on time
Keep the balance on your existing cards low

Purchase APR is the interest rate applied to the purchases made on the credit card. If you pay your statement in full each pay period, you’ll avoid this all together. Most credit cards have a grace period between the end of the billing period and the date your payment is due. During this period, you can pay off the purchase without incurring any interest. If you do hold a charge over the billing cycle, then the purchase APR is applied accordingly.

The Bottom Line

For example, say you’re carrying a balance of 0 on your credit card with 25.99% APR. Because the APR represents a yearly rate, you first need to find your daily interest rate by dividing the APR by 365 days.
For example, a mortgage loan may tout a low interest rate through discount points but then has higher fees, while another may have a higher advertised interest rate but lower fees. Interest rates alone may be misleading, so looking at the APR will allow you to more accurately compare the overall cost of these two loans.

APR represents the cost of borrowing credit, including interest and fees.
Fixed APRs have a set interest rate for the course of the loan while variable APRs rate can change without notice.
APY is different than APR in that it takes compounding interest into its calculations.
Improving your credit score can help you receive a lower–and therefore better–APR.

Frequently Asked Questions (FAQs) About APR

Over time, these small changes can improve your credit score and reduce the cost of borrowing overall.
Just like it sounds, fixed APRs don’t change. The rate that you locked in at onset of the loan stays with you for the term of the loan. Accordingly, fixed APRs are more predictable than a variable APR. The actual rate you’re offered is dependent on the market conditions (and your credit score) at the time of the loan/application. <!–

–>

Ready to stop worrying about money?

January 11, 2022

What Is a Ledger Wallet? An Overview

Ledger is a brand of crypto hardware wallets. They are among the most trusted in the industry and were responsible for bringing the first hardware wallets to market.

In the years since Ledger’s debut, many other wallet makers have hit the scene. But the Ledger name is still synonymous with secure crypto hardware wallets. The company derives its name from blockchain technology. Understanding the question “what is a crypto ledger” sheds light on why the company chose this name.

What Is a Crypto Ledger?

The term “crypto ledger,” or simply ledger, refers to the public ledger of transactions recorded on the blockchain. These transactions are recorded in the form of Bitcoin addresses. Whenever someone makes a transaction on the Bitcoin blockchain or any other blockchain, the transaction is recorded in the blockchain ledger along with the relevant information. This includes the time the transaction occurred, the amount sent, the sender and recipient’s addresses, and the current number of network confirmations.

A new blockchain begins with something called a “genesis block.” This is a manufactured block to start things off because no transactions have occurred yet. From that point on, transactions are grouped into additional “blocks,” with each block being added to the one that came before it. Subsequent blocks form a “chain,” giving rise to the term blockchain. A blockchain is, therefore, a public ledger of transactions.

Ledger, the company, is a leader in the cryptocurrency hardware wallet space. In 2014, they released the first such wallet to the general public.

Recommended: Cryptocurrency 101: A Beginner’s Guide

How Does a Ledger Wallet Work?

First, a brief answer to the question “what is a cryptocurrency wallet”: Wallets are where people send and receive crypto. Hot wallets hold private keys online while cold wallets (such as hardware wallets) hold keys offline. Hot storage vs. cold storage in crypto is an important distinction to make.

Ledger wallets are designed for newer users. Getting started is rather easy. The wallets require a separate application, also made by Ledger, to work. This app, called Ledger Live, lets users interact with their hardware wallet on a desktop or laptop computer.

The display of a Ledger crypto wallet has two parts: the small screen on the device itself and the Ledger Live app on a computer or mobile device. Most users’ actions take place in the app, although pushing one or both small buttons on the device itself is required to confirm some actions, like sending transactions.

The buttons are also used to navigate between the different cryptocurrency wallets. Each wallet is referred to as its own app within Ledger Live. For each crypto they want to manage, users have to install the appropriate app first.

What Are the Different Types of Ledger Wallets in Crypto?

Ledger makes two different wallet types:

1. Ledger Nano S

2. Ledger Nano X

Ledger Nano S

The Nano S has become known as one of the most popular and best-selling crypto hardware wallets to date. That said, it only has enough memory for about three apps at a time. That means users who want to work with more than three cryptocurrencies will have to repeatedly uninstall and reinstall new apps.

For example, say someone holds Bitcoin, Litecoin, and Ethereum. If they also want to use Dogecoin, they will have to uninstall the Litecoin app and install the Dogecoin app. Any Litecoin balance will still be held on the wallet, but to access it and send transactions, the Litecoin app will need to be reinstalled, which would require uninstalling an existing app.

Apps for different cryptocurrencies take different amounts of memory, so the potential number of installed apps may be higher than three. While limited currencies can be managed at one time, the list of Ledger-supported crypto is 1,800 coins long.

Ledger Nano X

The Nano X is the newer, upgraded version of the Nano S. Both wallets work with the Ledger Live app, and function in generally the same manner. However, the Nano X has a few extra features and allows for the storage of many more crypto apps at once.

While the Nano S supports only 3-7 apps at a time, the Nano X supports up to 100. Ledger Nano X users can connect to the app via mobile devices as well, thanks to the Nano X’s Bluetooth compatibility.

The Nano X can also run off of battery power and connect to a mobile device via Bluetooth. All of these extra features and upgraded functionality help explain why someone might choose the more expensive Ledger Nano X over the Nano S.

Why Consider Getting a Ledger Wallet?

The biggest reason to consider getting a Ledger wallet is for the additional security. Holding crypto in a hardware wallet results in greater security for two main reasons:

1. Coins can be held offline in cold storage.

2. Private keys are held by the individual.

Holding coins in cold storage means the private keys aren’t connected to the internet, so there’s no way for hackers to access them. While a hardware wallet generally has to be connected to an internet-connected device to send transactions, when not doing so the wallet will be completely offline.

Holding the private keys yourself means there’s no need to trust a third-party like an exchange. If an exchange gets hacked, and there’s no insurance policy, then users could be left empty-handed. This might be why those who hold large sums of crypto choose to make the investment in a hardware wallet like those made by Ledger.

Let’s take a closer look at how hardware wallets, and wallets made by Ledger specifically, come with increased security for long-term storage of cryptocurrency.

Ledger Hardware Wallet Security

Ledger wallets come with the following security features:

1. 24-word backup recovery seed phrase

2. PIN

3. Certified Secure Element (CC EAL 5+) hardware

When setting up a new wallet, users have to create a PIN that will be used to access the wallet. A seed phrase is also provided.

This 24-word string can be used to restore the balances held on a wallet. It’s best to keep that phrase somewhere safe and never store it digitally. Anyone with access to the seed phrase can steal the private keys, and therefore the coins, from your wallet. The seed phrase and PIN come standard with most hardware wallets.

Ledger uses something called Secure Element chips. Chips like these are also used to protect credit cards, SIM cards and passports. Ledger wallets are certified as being secure by an independent third-party.

There are different degrees of Evaluation Assurance Level (EAL), and Ledger has achieved the level EAL 5+. There are only two levels higher than EAL 5. According to Ledger , they are the only company that makes hardware wallets that have earned this level of security certification.

The Takeaway

A Ledger wallet for digital currencies can be used to hold crypto in a more secure manner. Cold storage is considered to be the ultimate in blockchain security measures.

While hardware wallets like those made by Ledger come with increased security for crypto, they also require greater user responsibility. Using a hardware wallet means you hold the private keys to your crypto, rather than them being held on an exchange. If you make a mistake like losing your PIN and backup seed phrase, the crypto held on that wallet will be gone forever. There’s nothing that Ledger or anyone else will be able to do to help.

That’s why investors holding a small amount of crypto might not need a crypto wallet like Ledger. For some people, a trusted third-party custodian like an exchange might be the best option.

Interested in investing in crypto? With SoFi Invest®, you can trade cryptocurrency online from a collection of more than two dozen coins including Bitcoin, Chainlink, Ethereum, Dogecoin, Solana, Litecoin, Cardano, and Enjin Coin.

Find out how to get started with SoFi Invest.

Photo credit: iStock/Free Life Design

SoFi Invest®
The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below.
1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).

2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.

3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.

For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates.
Crypto: Bitcoin and other cryptocurrencies aren’t endorsed or guaranteed by any government, are volatile, and involve a high degree of risk. Consumer protection and securities laws don’t regulate cryptocurrencies to the same degree as traditional brokerage and investment products. Research and knowledge are essential prerequisites before engaging with any cryptocurrency. US regulators, including FINRA , the SEC , and the CFPB , have issued public advisories concerning digital asset risk. Cryptocurrency purchases should not be made with funds drawn from financial products including student loans, personal loans, mortgage refinancing, savings, retirement funds or traditional investments. Limitations apply to trading certain crypto assets and may not be available to residents of all states.
Third Party Brand Mentions: No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third party trademarks referenced herein are property of their respective owners.
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.
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.
SOIN1021411

Source: sofi.com

January 10, 2022

Best Credit Cards from Bank of America

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Bank of America is one of the most prolific credit card issuers in the United States. Its ever-changing card lineup includes enticing options for consumers and small-business owners across the income and credit score spectrum.

Some Bank of America cards are better than others, of course. Rather than sort through every single BofA card under the sun, use this list as a shortcut to pick from among the very best.

Best Credit Cards from Bank of America

These are the best credit cards offered by Bank of America right now. Each does at least one thing really well, whether it’s delivering cash-back rewards built around your unique spending patterns or helping you pay down high-interest debt before it becomes truly unmanageable.

You don’t need to have a Bank of America savings or checking account to qualify for any of these cards, although you can potentially get more out of your card if you have or open one.

Best Overall: Bank of America® Premium Rewards® Credit Card

The Bank of America® Premium Rewards® Credit Card lives up to its name and delivers the best overall value of any Bank of America credit card. It’s ideal for consumers who travel and dine out frequently.

Highlights include:

$95 annual fee
Earn 50,000 online bonus points (worth $500) after you make at least $3,000 in purchases in the first 90 days of account opening
Earn unlimited 2x points on all eligible travel and dining purchases
Earn unlimited 1.5x points on all other eligible purchases
Flexible redemption options, including deposits to eligible bank or investment accounts, credit card statement credits, and gift cards
Get up to $200 in travel statement credits: $100 against qualifying purchases like seat upgrades, baggage fees, airline lounge fees, and in-flight services; and up to $100 against TSA PreCheck or Global Entry application fees
No foreign transaction fees

Best Cash-Back Credit Card: Bank of America® Customized Cash Rewards

The Bank of America® Customized Cash Rewards Credit Card is a cash-back credit card with no annual fee. Meant for applicants with good credit or better, its rewards program is designed to fit around your spending patterns and lifestyle.

Highlights include:

No annual fee
Get a $200 online cash rewards bonus after making at least $1,000 in purchases within the first 90 days of your account opening date
Get 0% APR for your first 15 billing cycles for purchases and balance transfers (balance transfers must be made within the first 60 days of opening your account)
Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishing
Change your 3% category up to once per month
Earn 2% cash back at grocery stores and wholesale clubs
Earn 1% cash back on all other eligible purchases
3% and 2% cash back capped at $2,500 in eligible purchases per quarter; then earn 1% cash back on all eligible purchases

Best for Frequent Travelers: Bank of America® Travel Rewards Credit Card

The Bank of America® Travel Rewards Credit Card is the perfect card for frequent travelers who don’t want to pay an annual fee. It has one of the best sign-up bonus offers around for a no-annual-fee card too.

Highlights include:

No annual fee
No foreign transaction fees
Earn 25,000 online bonus points (worth $250 as a statement credit) after you make at least $1,000 in purchases in the first 90 days of your account opening
Earn unlimited 1.5x points on all eligible purchases
Redeem for statement credit to reduce or cover the cost of flights, hotel stays, vacation rentals, baggage fees, and restaurant purchases (including takeout)
Get 0% APR for your first 15 billing cycles on purchases

Best for People With Existing Credit Card Debt: BankAmericard

BankAmericard is the best Bank of America credit card for people who need to pay down existing credit card debt without paying any more interest than necessary. Its 18-month 0% APR promotion on balance transfers is a great help here.

Highlights include:

No annual fee
No penalty APR
Get 0% APR for your first 18 billing cycles for purchases and balance transfers (balance transfers must be made within the first 60 days of opening your account)
Qualify for a $100 statement credit online bonus after you make at least $1,000 in purchases in the first 90 days

Best for People With Limited or Impaired Credit: Bank of America® Customized Cash Rewards Secured Credit Card

The Bank of America® Customized Cash Rewards Secured Credit Card is a cash rewards credit card for people with limited or impaired credit. As a secured credit card, it requires a security deposit when you open your account, but don’t worry — you’ll get it back if you close your account in good standing or upgrade to an unsecured card.

Highlights include:

No annual fee
Deposit between $300 and $4,900 to open your account
Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishing
Update your 3% category as often as once per month
Earn 2% cash back at grocery stores and wholesale clubs and 1% cash back on all other eligible purchases
3% and 2% cash back capped at $2,500 in eligible purchases each quarter

The Bank of America® Premium Rewards® Credit Card makes a second appearance on this list on account of its sign-up bonus, which is among the most generous of any credit card with an annual fee under $100.

To earn it, simply spend at least $3,000 in eligible purchases in the first 90 days after opening your account. Once that’s done, you’ll receive 50,000 online bonus points (worth $500) within one to two billing cycles.

Best for Students: Bank of America® Unlimited Cash Rewards for Students

The Bank of America® Unlimited Cash Rewards for Students is one of the best cash-back cards for students. And with relaxed underwriting standards, it’s open to students with limited credit history — those still building credit for the future.

Highlights include:

No annual fee
Get a $200 online cash rewards bonus after you make at least $1,000 in purchases within the first 90 days
Earn unlimited 1.5% cash back on all eligible purchases
Get 0% APR for your first 15 billing cycles for purchases and balance transfers (balance transfers must be made within the first 60 days of opening your account)

Best for Business Owners: Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card

The Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card is the top Bank of America credit card for business owners. It’s particularly useful for business owners and employees who travel frequently for work.

Highlights include:

No annual fee
No foreign transaction fees
Earn 3x points when you book eligible travel through the Bank of America® Travel Center
Earn unlimited 1.5x points on all other eligible purchases
Redeem for statement credits against eligible travel and dining purchases
Earn 30,000 online bonus points (worth $300 as a statement credit against dining or travel purchases) after you make at least $3,000 in purchases in the first 90 days
Get 0% APR for your first nine billing cycles on purchases

Methodology: How We Select the Best Bank of America Credit Cards

We use several key metrics to evaluate Bank of America credit cards and choose the best offers for our readers. Each relates to a specific aspect of the user experience or a particular use case, such as travel spending or transferring high-interest balances.

Rewards Program

A strong rewards program is a selling point for any credit card. Good thing Bank of America has plenty of different rewards options to choose from, including multiple cash-back credit cards and travel rewards credit cards.

Credit cards with excellent rewards programs often have annual fees, but not always. The Bank of America Customized Cash Rewards Card has one of the best cash-back programs around, yet it manages to avoid a recurring levy.

A great sign-up bonus is another big perk for discerning credit card applicants.

Bank of America has several credit cards with generous sign-up bonuses, including one that’s among the best in the travel rewards category (the Bank of America Premium Rewards Credit Card).

When evaluating a credit card sign-up bonus, make sure the required spend is realistic within your budget. You might have no trouble spending $500 or $1,000 during the first three months, but putting $4,000 or $5,000 on your card could be a tougher task.

0% APR Introductory Promotion

Several Bank of America credit cards have generous 0% APR introductory promotions as well. During the promotional period, these cards waive interest on purchases or balance transfers (or both).

A 0% APR credit card significantly reduces the cost of financing a major purchase that ordinarily wouldn’t fit into your monthly budget, like a home improvement project or a pre-holiday online shopping spree.

Meanwhile, a balance transfer credit card makes paying off high-interest debt a bit more manageable. The best options have other benefits, like strong cash-back or travel rewards programs.

Interest Rate

0% APR promotions do eventually end. When that happens, a low ongoing APR helps shave the cost of carrying a balance from month to month. While it’s best to pay off your credit card balances in full each month, life happens, and a lower interest rate can come in handy.

Credit Requirements

Bank of America credit cards span the credit spectrum, from secured cards designed for people with bad credit to premium travel cards for people with very good to excellent credit.

Cards that are picky about applicants’ creditworthiness aren’t necessarily worse than more lenient cards. Those picky cards usually have better rewards programs and perks. But if you’re still early in your credit journey, expect fewer choices.

Target User

Finally, we consider each card’s target user.

The biggest distinction is between personal (consumer) and small-business credit cards, but we can further break cards down by life stage, creditworthiness, and spending patterns. Some examples of common target user groups:

Frequent travelers
Students
People with impaired or limited credit
People rebuilding credit
People with existing credit card debt
People planning major purchases
People who spend heavily in specific spending categories, like gas or groceries

Bank of America Credit Card FAQs

You have questions about these Bank of America credit cards. We have answers.

What Annual Fees Should You Expect From Bank of America Credit Cards?

Bank of America credit cards aren’t known for over-the-top annual fees.

Many BofA cards, including most on this list, have no annual fees at all. Those that do charge annual fees are comparatively lenient, typically under $100. That kind of fee is often worthwhile for moderate to heavy spenders who can earn enough rewards to offset it while taking advantage of other potentially valuable card benefits.

What Are the Benefits of Bank of America Credit Cards?

Bank of America credit cards reserve some noteworthy benefits for cardholders with Bank of America bank accounts or investment accounts through Merrill Lynch, its in-house brokerage.

The biggest benefit is the potential to multiply credit card rewards through the Preferred Rewards program. Depending on your total balances on deposit in eligible BofA or Merrill Lynch account, you can earn a juicy online cash rewards bonus — up to 75% more rewards — as a Bank of America Preferred Rewards member.

Existing Bank of America customers can also link their BofA credit cards to their Bank of America checking or savings accounts to prevent overdrafts. Overdraft protection transfers may incur fees and interest, however.

What’s the Best Bank of America Credit Card?

That depends on your priorities.

Any of the cards on this list can reasonably claim to be the “best” Bank of America credit card, but each has its own benefits and drawbacks. To decide which is best for you, compare each card’s attributes against your spending priorities.

What’s the Interest Rate on Bank of America Credit Cards?

That depends on the credit card you choose and your personal creditworthiness. All else being equal, having a higher credit score means qualifying for a lower interest rate.

Some Bank of America credit cards have long 0% APR introductory periods, low ongoing interest rates, or both.

If you’re planning on carrying a balance from month to month, BankAmericard is probably your best bet. Likewise if you’re planning a major purchase or balance transfer soon after opening your account thanks to BankAmericard’s long 0% APR introductory offer.

Bank of America Customized Cash Rewards is a close second on the 0% APR introductory offer front.

By contrast, Bank of America’s secured credit cards typically have higher interest rates. Don’t carry balances from month to month on these cards if you can avoid it.

How to Choose the Best Bank of America Credit Card

If you’re in the market for a new credit card from Bank of America, you can’t go wrong with any of the cards on this list. They’re the very best BofA has to offer, and we stand behind our recommendations for them.

That said, your ideal Bank of America credit card might be different from the next person’s. To choose the card that best fits your needs, ask yourself what you hope to get from it.

Do you want a low ongoing interest rate or long 0% APR introductory promotion to finance a major purchase or pay down existing high-interest debt? That’s BankAmericard.

Are you looking for a card with a rewards program that you can tailor to your spending patterns? That’s the Bank of America Customized Cash Card.

Are you looking for a premium credit card with a great sign-up bonus and generous ongoing rewards that get even better with the Preferred Rewards’ program’s online cash rewards bonus? That’s the Bank of America Premium Rewards Card.

Those are just some ideas. You might have another ideal BofA card in mind. But one thing is for sure: You can use this list to speed along your search.

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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.

Source: moneycrashers.com

January 9, 2022

What Is Earnest Money?

Earnest money is a deposit a potential homebuyer places to signal to the seller that they have serious interest in a property. Also called a “good faith” deposit, this money benefits both the buyer and the seller during the homebuying process.

Purchasing a home involves a number of financial transactions, like saving for a down payment, securing a loan, and paying closing costs. Earnest money is another cost associated with buying a home, but it has the added role of protecting both buyers and sellers from some of the risks associated with a real estate transaction.

If the purchase falls through, earnest money helps sellers recoup time lost when the house was off the market.
If the contract terms are not met, earnest money is often refunded to the buyer.
If the purchase is successful, the earnest money deposit is applied toward the down payment for the home.

Read on to learn all about how earnest money works, how it benefits buyers and sellers, and what these deposits look like in different situations.

How Earnest Money Works

When a buyer is serious about purchasing a property, they use earnest money to signal their intent to purchase it. Although the deal is not finalized at this point, a significant earnest money deposit often prompts the seller to accept an offer, which changes the listing status to “under contract.”

While the amount of earnest money required varies, it frequently amounts to 1 to 3 percent of the total cost of the home. While earnest money is not always required, most sellers do prefer the deposit as a way of finding serious offers, and in competitive markets, a larger deposit provides the possibility of standing out in a crowded field of offers.

When a buyer places an earnest money deposit, the money goes into an escrow account, which means that a third party keeps the funds safe until an agreement is reached. After the house is closed on, the money is applied toward the down payment.

However, the real value of earnest money comes from the way it benefits both homebuyers and sellers.

When Is Earnest Money Refunded?

Earnest money deposits can be refunded in situations that don’t go according to plan, helping to protect homebuyers from several risks.

After the deposit is placed, a buyer and seller enter into a contract to begin the process of changing ownership. This contract describes several contingencies, which are conditions that have to be met before the contract is considered binding.

If any of these conditions are not met, then the contract falls through — and in several cases, the buyer will get their earnest money deposit refunded.

In the following situations, a homebuyer will have their earnest money refunded:

If the appraised value of the home is lower than the cost to purchase, the buyer can back out of the sale with their deposit.
If the home fails inspection, the buyer can leave the sale with their deposit or negotiate a lower price based on the cost of repairs.
If the buyer cannot secure a mortgage for the cost of the home, they are able to void the contract and reclaim their deposit.

That said, all of these situations are only covered if these contingencies are specifically laid out in the contract, so make sure to read carefully before signing. In any case, it’s very helpful for homebuyers to know that their deposit can be refunded in situations where the contract cannot be fulfilled by the seller.

Earnest money deposits also benefit sellers, who take on a risk when they begin contract negotiations with a buyer.

How Earnest Money Benefits Sellers

The most obvious way that earnest money benefits sellers is that it provides a clear signal about which buyers are serious. That said, there is an even more crucial way that earnest money deposits protect sellers during the course of a real estate sale.

After a potential buyer has put down an acceptable earnest money deposit, the seller will typically enter into negotiations. As a result, the listing for the home changes to “under contract,” which discourages other potential buyers.

If the buyer backs out of the sale, the seller has lost time that the house could have been shown to other buyers, and they may need to pay additional costs to re-list the house on the market. However, because the seller is given the earnest money deposit in this situation, they are able to recoup some of their losses.

While these deposits may at first seem burdensome, ultimately they are beneficial to everyone involved in the process of buying or selling a home.

Examples of Earnest Money Deposits

In order to truly understand how earnest money works, it can be helpful to imagine some of the main scenarios that occur after a deposit is placed.

After a buyer puts down an earnest money deposit and contract negotiations begin, there are three typical situations:

The buyer backs out: If the buyer backs out of the sale, the seller retains the earnest money deposit.
The contract conditions are not met: Conditions that are not met — like the home inspection contingency or the appraisal contingency — lead to a void contract, so the buyer can walk away with their earnest money.
The sale closes: If the buyer and seller agree to terms and the sale closes, the buyer’s earnest money deposit is applied toward the down payment.

As you can see, earnest money deposits are positive for both buyers and sellers. Sellers benefit because buyers are more committed and financially invested, and buyers benefit because contingencies allow them to walk away from a situation that was not as it appeared. And if the sale closes, the earnest money is applied to the cost, leaving all parties satisfied.

Purchasing a home is an important financial milestone, and understanding earnest money is a great first step in the process of buying real estate. To make sure you’re on track, fine-tune your budget before preparing to buy a home. And once you’ve settled on the right place, don’t forget to consider additional costs like home improvements or home repairs.

Learn more about security

Source: mint.intuit.com

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The Bottom Line

The Trend to Cut Overdraft Penalties

Banks and Credit Unions That Don’t Charge Overdraft Fees

How Money Transfer Apps Work

What to Look for With Money Transfer Apps

How the Best Money Transfer Apps Stack Up

Zelle

Cash App

PayPal

Venmo

Facebook Pay

Google Pay and Apple Pay

Transferring Money Internationally

Money Transfer Etiquette

Frequently Asked Questions (FAQs) About Money Transfer Apps

Understanding Naked Put Options

Requirements for Trading Naked Put Options

Selling Naked Puts

Naked Versus Covered Puts

Example of a Naked Put Option

The Takeaway

Our Verdict

What Is APR?

The Two Types of APR

The APR Terms You Need to Know

Purchase APR

Balance Transfer APR

Cash Advance APR

Penalty APR

Introductory APR

The Difference Between APR and APY

How to Calculate APR’s Cost to You?

What Determines the APR You’re Offered?

The Bottom Line

Frequently Asked Questions (FAQs) About APR

What Is a Crypto Ledger?

How Does a Ledger Wallet Work?

What Are the Different Types of Ledger Wallets in Crypto?

Ledger Nano S

Ledger Nano X

Why Consider Getting a Ledger Wallet?

Ledger Hardware Wallet Security

The Takeaway

Additional Resources

Best Credit Cards from Bank of America

Best Overall: Bank of America® Premium Rewards® Credit Card

Best Cash-Back Credit Card: Bank of America® Customized Cash Rewards

Best for Frequent Travelers: Bank of America® Travel Rewards Credit Card

Best for People With Existing Credit Card Debt: BankAmericard

Best for People With Limited or Impaired Credit: Bank of America® Customized Cash Rewards Secured Credit Card

Best Sign-Up Bonus: Bank of America® Premium Rewards® Credit Card

Best for Students: Bank of America® Unlimited Cash Rewards for Students

Best for Business Owners: Bank of America® Business Advantage Travel Rewards World Mastercard® Credit Card

Methodology: How We Select the Best Bank of America Credit Cards

Rewards Program

Sign-Up Bonus

0% APR Introductory Promotion

Interest Rate

Credit Requirements

Target User

Bank of America Credit Card FAQs

What Annual Fees Should You Expect From Bank of America Credit Cards?

What Are the Benefits of Bank of America Credit Cards?

What’s the Best Bank of America Credit Card?

What’s the Interest Rate on Bank of America Credit Cards?

How to Choose the Best Bank of America Credit Card

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