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Most business bank accounts aren’t built with very small businesses in mind, let alone freelancers and solo entrepreneurs. If you have big plans for your company or independent professional practice but haven’t grown to the point where a traditional business bank account makes sense, you’re probably a bit frustrated by your options.
If that’s the case, look to the NorthOne Deposit Account. It’s a flexible business account with a reasonable monthly fee, no minimums, and some useful built-in tools. It can’t do everything and might not be appropriate for every growing business, but it’s definitely worth a closer look.
What Is the NorthOne Deposit Account?
Also known as the NorthOne Business Account or simply the NorthOne Account, the NorthOne Deposit Account is a small-business checking account. It has a flat $10 monthly fee that can’t be waived but has few additional fees, which makes it a lower-cost alternative to most traditional business bank accounts.
The NorthOne Deposit Account is a fully online bank account. NorthOne itself is a financial technology app; banking services and FDIC insurance come courtesy of The Bancorp Bank, NorthOne’s banking partner. The NorthOne Deposit Account is NorthOne’s only deposit account product.
Despite having no physical branches, NorthOne offers a comprehensive lineup of business banking services, including remote check deposit and bill payments, same-day ACH transfers, built-in budgeting tools, and external integrations with third-party accounting and payroll apps. Other benefits include no NorthOne ATM fees at any ATM in the United States (though third-party fees may still apply) and virtual debit cards on demand.
What Sets the NorthOne Deposit Account Apart?
The NorthOne Deposit Account stands out from other business accounts for several reasons:
No ATM fees charged by NorthOne. You can use your NorthOne debit card to withdraw cash at any U.S. ATM without paying any fees to NorthOne. Some ATMs may charge third-party fees that NorthOne can’t control, but this is still a big advantage over most business banks.
Built-in budgeting tools. NorthOne has a built-in envelope budgeting system that makes it easy to track and control business expenses through the month.
Unlimited virtual card numbers for account owners. You can create unlimited virtual card numbers on demand, which is a huge plus if you make a lot of online purchases with vendors you don’t fully trust.
Few additional fees. This account comes with some additional fees, like for wire transfers and instant ACH transfers, but it’s a far cry from the long, convoluted fee schedules found at most traditional business banks.
No way to avoid the $10 monthly fee. This account’s biggest downside: there’s no way to avoid the $10 monthly maintenance fee. But you get what you pay for.
Key Features of the NorthOne Deposit Account
The NorthOne Deposit Account is simple enough as business bank accounts go, but do take the time to understand its core features and capabilities before opening an account.
Account Fees & Minimums
The NorthOne Deposit Account has a $10 monthly fee that can’t be waived. There’s no minimum opening deposit or ongoing balance.
Debit Card & ATM Access
This account comes with a free Mastercard debit card accepted wherever Mastercard is. You can use it to deposit or withdraw cash at any U.S. ATM with no fees charged by NorthOne. ATM owners may still charge fees that are out of NorthOne’s control.
Envelope Budgeting
NorthOne has a built-in envelope budgeting tool that lets you create pools of cash earmarked for specific expenses or goals, such as payroll, rent, and debt service. Each envelope remains part of your main account, but you can pay bills directly from them to avoid commingling funds.
Payments & Transfers
The NorthOne Deposit Account allows you to cut physical checks to third-party payees directly from your account. There’s no fee for this service.
Standard ACH transfers also cost nothing. However, same-day ACH transfers cost 1.5% of the transaction amount (maximum $15) and domestic wire transfers cost $20 to send.
Third-Party Software Integrations
The NorthOne Deposit Account integrates directly with more than a dozen business and consumer software apps:
Accounting tools like QuickBooks
E-commerce platforms like Amazon, Etsy, and Shopify
Payment processors like Square, Stripe, PayPal, and Venmo
Payroll processors like Gusto
There’s no cost to link your NorthOne account to any external platform, though all charge fees for their services.
Mobile Features
NorthOne has a comprehensive mobile app that’s well-reviewed (over 4.5 stars) by thousands of verified users and has a long history of reliability and usability. Anything you can do with the desktop interface, you can do with the mobile app.
Deposit Insurance
This account comes with FDIC insurance coverage up to $250,000. If NorthOne or its banking partner go out of business, the federal government reimburses you up to this amount.
Pros & Cons
There’s more to like than dislike about the NorthOne Deposit Account, but no business bank account is perfect.
No minimum balance
No NorthOne ATM fees
Built-in budgeting capabilities
Numerous third-party software integrations
No way to avoid the $10 monthly fee
No interest on balances
Extra fees for certain account activities
Pros
The NorthOne Deposit Account is a flexible, relatively low-cost deposit account for small, growing businesses.
No minimum balance requirement. This account has no minimum deposit or ongoing balance requirement. You can fund your account in any amount and keep as little cash in it as you wish.
No ATM fees charged by NorthOne. NorthOne charges no ATM fees at any U.S. machine. ATM owners may still charge fees that NorthOne can’t control, but your overall cash withdrawal costs should still be lower than with a traditional bank.
Free remote check deposit and payments. You can deposit checks on your phone with NorthOne and cut physical checks to send to vendors right in the app. There’s no fee for either action.
Built-in budgeting capabilities. NorthOne has a built-in envelope budgeting system that helps you keep your expenses straight and identify potential problem spending areas. Many business accounts have nothing similar.
Easy integration with third-party business software. The NorthOne Deposit Account integrates with more than a dozen third-party business apps, including QuickBooks, Shopify, Stripe, Square, and Gusto.
Cons
The NorthOne Deposit Account has an unavoidable monthly cost and some important limitations that could give you pause.
No way to avoid the $10 monthly fee. This account’s $10 monthly fee is unavoidable. There’s no way to avoid it with a minimum balance or transaction activity.
No interest on balances. This account pays no interest on balances. This is a big downside if you’re looking to put your company’s cash reserves to work.
Fees for some account activities. NorthOne doesn’t charge a ton of extra fees, but it does charge for activities like instant ACH transfers and wire transfers, both of which you may need to do as your business grows.
How the NorthOne Deposit Account Stacks Up
Before you open a NorthOne Deposit Account, see how it stacks up against other popular business bank accounts. One popular alternative is Bluevine Business Checking, which also has no minimums and relatively low fees.
NorthOne Deposit Account
Bluevine Business Checking
Monthly Fee
$10
$0
Minimum Balance
$0
$0
Subaccounts
No, but Envelopes have similar function
Yes, up to five
Yield
None
2.00% APY on eligible balances
ATM Access
Unlimited
120,000+
NorthOne beats Bluevine on ATM access and subaccount availability (if you count Envelopes as subaccounts, which they basically are). But it falls short on the monthly fee (Bluevine is free month-to-month) and account yield (NorthOne doesn’t pay interest).
Final Word
The NorthOne Deposit Account is a flexible, user-friendly account for independent professionals and small businesses. While it’s not appropriate for larger companies, or even for small businesses with really complex finances, it nevertheless appeals to millions of people who aren’t well-served by traditional bank accounts.
If you’re among them, the NorthOne Deposit Account isn’t your only option. But it’s one of the better ones.
The Verdict
Our rating
NorthOne Deposit Account
The NorthOne Deposit Account is a flexible, easy-to-use business bank account for small, growing businesses and sole proprietors, including freelancers. Although it has an unavoidable monthly maintenance fee, capabilities like built-in budgeting and external software integrations justify the price tag. Just don’t expect to earn any interest on your balance.
Editorial Note:
The editorial content on this page is not provided by any bank, credit card issuer, airline, or hotel chain, and has not been reviewed, approved, or otherwise endorsed by any of these entities. Opinions expressed here are the author’s alone, not those of the bank, credit card issuer, airline, or hotel chain, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
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Brian Martucci writes about credit cards, banking, insurance, travel, and more. When he’s not investigating time- and money-saving strategies for Money Crashers readers, you can find him exploring his favorite trails or sampling a new cuisine. Reach him on Twitter @Brian_Martucci.
When my husband started using a virtual wallet, I was concerned. We share a joint credit card and I was bothered about the security side of carrying around credit card information on a cell phone. In my mind, paying for things with your cell phone seemed too easy and a bit dangerous.
Through a combination of reassurance from my husband and a significant number of Google searches on “are virtual wallets safe,” I began to feel more comfortable with the idea.
I know I’m not alone when it comes to questions about the safety of virtual wallets. So, let’s talk about it. What are virtual wallets and, most importantly, are they safe?
What’s Ahead:
What are virtual wallets?
A virtual wallet, sometimes referred to as an e-wallet, is an electronic wallet that lives on your mobile device. Virtual wallets can store all of your payment-related information including credit cards, debit cards, rewards cards, membership cards, and coupons, allowing you to pay for things electronically. No more trucking around your bulky wallet or disorganized purse.
Depending on the type of mobile device you use, you may have a virtual wallet already installed on your phone. For instance, iPhone users will have access to Apple Wallet. Other virtual wallets can be obtained by downloading an app onto your mobile device.
Virtual wallets vs. mobile wallets
The terms virtual wallets and mobile wallets are often used interchangeably. However, there is a difference. A mobile wallet is a type of virtual wallet that can be accessed by downloading an app on a mobile device like a smartphone or wearable watch.
A popular example of a virtual wallet is PayPal. However, when PayPal is used on a mobile device it can function as a mobile wallet.
Popular examples of mobile wallets include Apple Pay, Samsung Pay, and Android Pay.
Banks like Chase, even offer digital wallets. With Chase accounts, you can get Chase Pay®, which allows you to simply and securely use your phone to make payments.
What are the most popular virtual wallets?
There are a variety of virtual wallets available for you to choose from. Some of the most popular virtual wallets include:
Samsung Pay.
Apple Pay.
Android Pay.
Chase Pay.
PayPal.
Google Wallet.
Venmo.
Zelle.
You can also check out wearables that offer mobile payment options like Garmin Pay and Fitbit Pay.
From a global perspective, virtual wallets like Alipay and WeChat Pay which are both based in China, service millions and millions of users.
How do I use a virtual wallet to make a payment?
While each virtual wallet will vary, there are some general steps associated with using an e-wallet.
The first thing you’ll need to do is launch or install a virtual wallet app. Next, you will have to add a new credit card or debit card. To do this you can take a picture of your card or enter the details manually.
When you’re ready to make a payment, you will launch the app and then choose the credit or debit card you want to use.
When it comes to actually making the payment, most smartphones use a technology called near field communication (NFP). NFP allows you to simply hold your phone above the payment pad or tap the payment pad to pay for your purchase.
However, not all mobile devices are equipped with NFP. In this case, you can use a mobile wallet like PayPal. Instead of tapping your phone onto the pay pad, you use your mobile phone number and a pin to make your payment.
Are virtual wallets safe?
When I heard about virtual wallets my first question was, are they safe? It seemed a bit risky to be carrying around all of my payment information on my phone. I mean, what if I lost my phone? Then what? Could someone hack in and access my virtual wallet?
It was this fear and lack of trust that prevented me from using a virtual wallet for a long time. However, virtual wallets are arguably even safer to use than your regular plastic credit or debit cards.
First, digital wallets eliminate the potential to expose important information like your credit card number, your pin, or the CVV number on your credit card. When you pay for something with your digital wallet it uses a process called “tokenization.” This means that your sensitive info (like credit card numbers) is removed and replaced with a one-time-use number that is generated by an algorithm. So, none of your sensitive data is ever made public in any way. Unlike when you swipe or tap a credit card.
Second, all of your payment information is encrypted. When you add a new debit card or credit card to your virtual wallet the information is encrypted and stored in the cloud. Even if someone steals your phone they would need your fingerprint or your passcode to access your virtual wallet.
On the other hand, if you drop your wallet somewhere or get pickpocketed, your credit cards can be easily used and the information can be stolen.
Is it easier for hackers to access your virtual wallet vs. your credit/debit card?
While no payment option is 100% hacker-proof, a physical credit card is much more susceptible to being hacked than a card in your virtual wallet. As I mentioned above, digital wallets provide multiple layers of security that aren’t present when it comes to your plastic credit card.
A physical credit card presents more opportunities for thieves or hackers to get your information. If someone steals your credit card they can easily make a purchase online, or even in a store as many merchants don’t confirm that you are the actual cardholder.
A virtual wallet requires a more intense authentication process that involves a password or proof from a biometric marker (fingerprint, retinal scan). Not to mention that you have to be able to unlock the phone before you can even gain access to the virtual wallet. There are simply more security steps involved.
If you believe that your virtual wallet has been compromised or you’ve lost your phone, it’s easy to suspend all payments. For instance, with Apple Pay, if you put your phone into lost mode, it will automatically suspend all of your payment cards. This is much easier than having to call up each bank or financial institution to cancel your cards if you lose your physical wallet.
Additionally, when you use a virtual wallet on your phone you also have the option of installing apps that will help you to locate your phone. So, if it is stolen the thief will have to figure out how to open your phone, won’t be able to authenticate, and you will be able to track their location.
Is the money in your virtual wallet FDIC insured?
The Federal Deposit Insurance Corporation (FDIC) has been around since the 1930s. It’s their job to ensure stability and public confidence in the financial system. The FDIC insured all deposit accounts including checking, saving, money market deposit accounts, and certificates of deposit up to a standard amount of $250,000 per depositor, per insured bank.
When it comes to whether or not your virtual wallet is FDIC insured the answer is a bit murky. However, as a rule of thumb, if your money is stored within a non-banking institution then the money is not insured. For instance, PayPal and Venmo are not considered banking institutions, so any money stored in these apps is not FDIC insured. There are some exceptions including Google Wallet. According to Yahoo Finance!, as of 2015 money stored in Google Wallet became FDIC insured.
Before you assume that any funds stored in your mobile wallet are FDIC insured, make sure you thoroughly investigate.
The pros and cons of virtual wallets
Pros:
Security. Despite my initial reservations about the security of virtual wallets, security is actually one of it’s biggest benefits. Because virtual wallets eliminate the need to use credit card numbers, CVVs, or pins, it makes them impervious to hacking.
Convenience. With a virtual wallet, you no longer have to carry around a wallet or a purse. You will also never have to worry about forgetting a particular credit card or rewards card at home because they are all nicely organized on your phone.
Time-saving. Paying with a virtual wallet can also save you time. No more waiting for a salesperson to swipe your card or enter your number.
Contactless payment. Many virtual wallets eliminate the need to touch the germy buttons on a debit machine or pass your credit card from your hand to the merchant. It makes for a clean and touchless payment experience.
Cons:
Not universally accepted. One of the main challenges associated with using virtual wallets is that they aren’t accepted by all retailers.
Compatibility. Not all virtual wallets will accept all credit cards. While most mobile wallets are accepted by the big banks, some business credit cards might not be accepted. You can check with your bank or log onto the mobile wallet website to confirm which cards are accepted.
Trust. As I admitted, a lack of trust was the reason I put off using a virtual wallet. And, I know I’m not alone. While virtual wallets offer additional security over a credit card this is not necessarily the shared perception among all Americans.
Battery. Unlike a conventional purse or wallet, your phone requires battery power to be used. If your phone runs out of batteries while you’re shopping, you can’t make a purchase until you recharge.
Variability. Not all virtual wallets will allow you to store all of your card information. For instance, some e-wallets will permit debit and credit cards only while others will permit everything from credit cards to reward cards and airline tickets.
Who should use a virtual wallet?
Virtual wallets are available to anyone with a desktop or mobile device. However, when it comes to whether or not you should use a virtual wallet there are a few questions you can ask yourself to decide if it’s right for you.
Do you want to increase your security?
Virtual wallets provide additional security features that just aren’t available for plastic debit or credit cards. If you want encryption and multiple steps of authentication, then perhaps a virtual wallet is the right choice.
Do you value time savings and convenience?
If you enjoy online shopping, virtual wallets can save you a lot of time when it comes to paying for your purchases. No more time wasted on manually entering your credit card number, expiration date, and CVV code. I mean, we’re not talking days or weeks in time savings, but a few minutes here and there adds up over the long haul.
Are you always looking for your credit card?
A virtual wallet provides a single organized location for all of your payment information. So, if you’re someone who is constantly leaving your credit card in your coat pocket or forgetting to bring your rewards cards when you go shopping, a virtual wallet could help to keep you more organized.
Who shouldn’t use a virtual wallet?
While virtual wallets offer a number of perks, they aren’t necessarily the right payment tool for everyone. Here are a few additional questions to ask yourself to see if perhaps a regular old wallet or purse is a better option for you.
Do you feel comfortable with a virtual wallet?
While virtual wallets are growing in use, there is still a segment of Americans that don’t trust them. If you feel uncomfortable or unsafe using a virtual wallet then you shouldn’t. While virtual wallets are arguably safer than using a physical credit card or debit card, you should stick to using what you feel most comfortable with.
Are you very concerned with your privacy?
While a virtual wallet can add some additional security over a plastic credit or debit card, it also introduces some new privacy concerns. When you use your virtual wallet, retailers and financial institutions can potentially collect data on the types of purchases you are making. This can then be used to help retailers develop targeted marketing. I mean, this is already happening if you are using social media, but it’s something to be aware of.
Do you continually forget to charge your mobile device?
If you are notorious for walking around with a dead smartphone then maybe you should skip the virtual wallet. Bottom line, if your phone is dead you can’t pay for things.
Summary
Like any technology available for use, virtual wallets come with pros and cons. You will have to decide if the added security features and convenience outweigh any trust or privacy concerns that you might have.
It took me some time to become comfortable with the idea of using a virtual wallet. I was not one of the early adopters. I’m an old Millennial and I’ve been using physical debit and credit cards for decades. As a result, it took a lot of research and just trying it before I saw the perks. For me, the benefits outweigh the risks. But, it’s up to you to decide if a virtual wallet is right for you.
Sure, you’re probably not using paper checks for most things. But are you returning payments to medical providers and insurance companies in the mail? Paying by check for the random parking ticket or your child’s piano lessons? Now is a good time to stop: Check fraud tied to mail theft is up nationwide, according to a February alert from the Financial Crimes Enforcement Network. And letter carrier robberies are also on the rise.
This is partially due to the effects of the pandemic, when thieves targeted government relief checks in the mail. “Fraudsters just went back to tried-and-true potential attack factors that seemed to be working,” says Michael Bruemmer, head of global data breach resolution for Experian.
The U.S. Postal Service is vulnerable, and thieves who can access your checks can change the amount and ferret those funds right out of your bank account. And then it can take weeks to get the funds back.
“It’s absolutely a life disruption event when you mail a check and it’s been intercepted,” says Mary Ann Miller, fraud and cybercrime executive advisor and vice president of client experience at consumer identity company Prove. “That can take all the money out of your account at once.”
Here are some steps to keep yourself safe from check fraud — and what to do if you’re a victim.
Use payment alternatives
Look for ways to pay your bills that don’t require using the mail. Check your statement for online payment instructions, for example. “We are beginning to see more online options,” Miller says. “In fact, some medical providers, like One Medical, have a very nice option to pay from a mobile app along with all of your medical information. I find it super helpful and modern.”
If you’re paying individuals, ask if they’ll accept electronic payment through PayPal, Venmo, Zelle or another cash app. “There’s really no need to be writing checks today,” Bruemmer says.
Working with a vendor that doesn’t offer an easy way to pay online? Call and ask if you can pay over the phone. “Paying by phone via the IVR — interactive voice response — or a live customer service representative is definitely a preferred option,” Miller says. “Just make sure you are calling the correct number for the utility or medical provider.”
And in general, experts recommend using credit cards to transact, whenever possible. “You have a lot more protection globally with a credit card, if you’re traveling internationally, or if you’re buying things online,” says Derek Miser, an investment advisor and CEO at Miser Wealth Partners in Knoxville, Tennessee.
Send checks safely
If you must send a check, take steps to lower the chances of financial mayhem. If it’s a big payment, consider using a shipper like UPS or FedEx. “They do accept checks and provide a tracking number,” Miller says.
If you’re using the U.S. Postal Service, send your payment in a security envelope and take it directly to the post office, bypassing mailboxes and mail carriers. You can also write your checks using a black gel ink pen to make it harder for criminals to wash your checks (the ink soaks into the paper).
If you’re sending a check to someone, ask them to let you know once they receive it. That way, if too much time has passed and the recipient hasn’t gotten the check, you can place a stop payment, Miller suggests.
One last safeguard: Keep enough funds in your checking account to pay the bills, but put the rest elsewhere, such as a linked savings account. The smaller your checking account balance, the less money that can be accessed by someone forging a check against your account.
Take action if a check goes awry
If you suspect a check has fallen into the wrong hands, call your bank right away. Then file a police report and contact the person or business that was meant to receive the check. If you were making a payment, you may have to make arrangements to make another payment to prevent late fees or interest.
Be forewarned: Processes for returning fraudulently lost money to bank accounts vary by institution, and some timelines are lengthy. “The customer generally is made whole, but that could be months,” Miller says.
In the meantime, consider putting a fraud alert on your credit reports in case someone tries to open credit in your name, and go over your bank statements and credit reports with an eagle eye. Note that you’re eligible for a free credit report from each of the three major reporting agencies each year at AnnualCreditReport.com.
You can also set up check monitoring at some banks, from which you’ll receive text messages or alerts when transactions over a certain amount are cashed.
“I would say now that just about every bank has some sort of monitoring,” Bruemmer says. “Take advantage of that free alerting that comes from being a member of a financial institution.”
This article was written by NerdWallet and was originally published by The Associated Press.
Human beings like heuristics and rules of thumb because they make our complicated world a little bit more simple.
However, these steadfast rules that we believe in for generations, the ones that are passed down from grandparents to parents, to us. These can be dangerous if they go unchecked.
So, after 2020, a year that made us question everything, it’s time to reassess some of the old money rules that we heard from our parents and they learned from theirs. We need to ask ourselves if these rules still hold true. For example, is buying always better than renting? I mean, that’s what my parents told me. And should you always pay off debt before you start investing?
Here are 10 out-dated money rules that just don’t hold true in a post-2020 world.
What’s Ahead:
Real estate is always a good investment
Your parents have probably touted this financial truth, I know mine have. But is real estate always a good investment in today’s world? I can tell you from first-hand experience that no, it’s not always a good investment.
Sometimes you buy high and then the market changes and you’re stuck in a situation where you have to sell low and take a loss. This is what happened to me and my husband. When we were looking for our first home, the market was pumping. There were lineups to get into open houses and bidding wars were commonplace. Flash forward seven years and we are selling our home for a significant loss.
If we would have invested all of the money we spent on our downpayment and other homeownership costs into the stock market, we would be much better off financially today. But, we love our home. It’s where our children took their first steps and where we’ve shared many wonderful memories. Despite it being the anti-investment that we were promised by our parents, I’m still glad we did it. And it’s important to point out that this was just our experience. You may have better luck, but as with any investment, know the risks, don’t just take the advice of your family and friends.
Buying a home is always a better financial decision than renting
As I just discussed, buying a home is not always a guaranteed investment. Depending on your circumstances, renting can be a better financial decision. For instance, if you’re debating homeownership versus renting and you don’t plan to stay in the home long-term (more than five years), it probably makes more financial sense to rent. This is because moving and homeownership are expensive.
Buying a house requires a downpayment, home inspection fees, closing costs, lawyer fees, and moving fees. Once you’re in the home you have to pay mortgage payments, condo fees, property taxes, and home maintenance.
Other times when you might want to consider renting instead of buying are if you have a large amount of high-interest debt, if you value flexibility and the ability to move around frequently, or if you aren’t interested in taking on the risk and responsibility that come with maintaining a home.
You should pay off your mortgage as soon as possible
I’m sure you’ve heard this at least once before. It’s well-intentioned advice but it doesn’t hold true for every person. Paying off your mortgage as soon as possible is not always the best financial decision (again, for some). You can think about this in terms of opportunity cost.
Let’s say you are paying 3% interest on your mortgage. If you pay off your mortgage as soon as possible, then you put that 3% back in your pocket. However, you could be earning more elsewhere. The average return on the S&P 500, since its inception, is approximately 8%. This means you’re better off making your regular mortgage payments at 3% and investing any extra money that you have into the market for an average of 8%. This leaves you with a 5% profit.
Pay off all debt before you start investing
If you’re in heaps of debt and you’re just trying to make ends meet, you might be wondering if you should still contribute to your retirement savings. While you may have been told that you should halt all investing until your debt is completely paid off, this is not always the best course of action.
The debt versus investing debate is much more nuanced than just deciding to pay off debt or do both. Sometimes it makes sense to hold off on investing if you have a lot of high-interest debt. For instance, if you’re paying 20% or more in interest on a credit card, and you’re making an average of 8% on your investments, then, based on a simple calculation, it makes more financial sense to focus on paying off debt.
However, if you’ve taken out a mortgage at 3% and it’s going to take you 25 years to pay back, you don’t want to hold off on investing.
Investing is also about habit formation. Even if you start investing a super small sum of money each month, you get yourself into the habit of doing it. So, when your debt is paid off and you have more money to invest, you’re not starting from zero. You already know what to do.
You should always be hustling
I consider myself to be a hard worker. I always have been. I find joy in crossing things off of my “to-do” list. However, even I’m getting tired of the “rise and grind” or “I’ll sleep when I’m dead” style quotes. And, the advice to get up at 4 am if you want to achieve any kind of financial success…give me a break.
Your self-worth shouldn’t be based on how busy you are or how sleep-deprived. There’s nothing wrong with hustling but the goal should be to find balance. Sometimes you need to put in a few super long days to get your work done, and sometimes you need to go to bed at 7:30 and have a 12-hour sleep to refuel.
You need to have the equivalent of your annual salary saved for retirement by 30
Fidelity has a well-shared rule of thumb about how much you should have saved for retirement based on your age. They recommend saving at least one time your annual salary by age 30. This means if you earn $50,000 a year then you want to have $50,000 in retirement savings.
While this isn’t bad advice, it tends to oversimplify things. Rules of thumb are great for making financial concepts seem more simple; however, they eliminate all of the individual contexts. If you are nearing 30 and you know there is no way you will have the equivalent of your annual salary saved by your birthday, don’t feel bad.
Instead of focusing on a specific number, focus on creating short and long-term financial goals that are reasonable for you based on your individual situation. Thirty is still young. You have lots of time to increase your earning potential and your savings. The most important thing is that you are making saving a priority and putting away what you can each month.
Always pay with cash
The idea of always paying with cash is that it makes it easier to stick to your budget and avoid overspending when you can physically see your money leaving your fingers. When you can feel and see the cash leaving your hands, you might think more about how you are spending your money versus when you swipe your credit card.
Also, if you can pay for something with cash it means you have enough money in the bank to cover the purchase. In other words, you don’t have to borrow the money or pay anyone interest.
Again, while this isn’t bad financial advice it’s just not realistic for many people these days. First, there are advantages to paying for things using credit cards. You can earn cash back and points. With the rise of online shopping, it’s also more convenient to pay for your purchases using PayPal or Venmo.
Also, when paying with cash you have to consider the opportunity costs. If you want to buy a big-ticket item like a car and you have enough cash on hand to do it, it still might not be the right move. Again, it comes to a simple calculation. If you can borrow money at an interest rate that is lower than what you could earn on the money you invest, then it might be better to take out a loan and invest your cash.
If you want financial stability, find a steady nine-to-five job and stay there
In the past, it was normal to get a job right out of college, work there for the next four decades, and then retire with a healthy pension. This rarely happens anymore.
While working a steady job at the same company for an entire career might have been commonplace for your grandparents this is not the case for most Millennials. In fact, this doesn’t even hold true for most boomers. According to the Bureau of Labour Statistics, boomers born between 1957 and 1964 “held an average of 12.3 jobs.”
Today, more and more young people find themselves working multiple jobs in order to pay their bills. Contract and freelance positions are more commonplace and almost everyone you meet has a side hustle.
Now, most college grads leave school with a significant amount of student loan debt and often struggle to find a well-paying job that will keep them on and continue to promote them for years and years.
You can’t retire until you’re 65
Retiring at 65 is a money rule that is seriously outdated. In 1935 the Social Security Act set the minimum age of retirement at 65. This was the age when you could start receiving full retirement benefits.
Today, young Americans aren’t even sure they are going to receive Social Security. For those nearing retirement, many are worried about the state of their social security.
On the other side of this coin, many people have decided that they don’t want to wait until they are 65 to enjoy the benefits of retirement. With the FIRE movement, the goal is to save as much as you can in your younger years so you can stop working in your 30’s, 40’s, or 50’s.
The point here is that retirement looks different for everyone. Age 65 is an arbitrary number. Some people will never be able to fully retire while others are doing what they can to stop working as soon as possible.
If you can save $1 million, you can retire comfortably
$1 million. It might still sound like a lot of money, and it definitely is but it still may not be enough to cover the cost of your retirement.
As a result of people living longer and at a higher cost of living, a million dollars just isn’t what it used to be. And yet, it is one of those financial rules of thumb that many people still hold on to. According to a survey of 1,015 Americans by TD Ameritrade, 6 out of 10 Americans believe they can comfortably retire with $1 million saved.
For those living in a high-cost area or those that want to retire early, a million dollars is simply not going to cut it. Instead, you should be thinking about your individual context. Where do you live? What kind of retirement do you envision? At what age do you want to retire? Have you considered the cost of inflation? Have you considered the costs associated with long-term care?
For some, the idea of saving $1 million is completely inconceivable. For others, it won’t get them through their first decade of retirement.
Summary
When it comes to your personal finances remember this – it’s personal. What works for your friend Bob, or your Dad, or your aunt Sue, won’t necessarily work for you. While financial rules of thumb make the complicated world of money seem a little bit more manageable, they aren’t a silver bullet.
It’s important that you question these financial “truths” and really think about your situation and what works best for you. The best thing you can do is develop consistent habits around saving, investing, and debt repayment and continue to grow your financial knowledge.
By: Brittney Myers |
Updated
June 4, 2023– First published on June 4, 2023
We all love the shock and awe of huge discounts, such as when you can save hundreds on living room furniture or get a half-priced gazebo. But it’s not those outsized deals that make warehouse stores like Sam’s Club such a great personal finance choice for so many families.No, that comes down to the solid savings on all our everyday necessities. Because, in the long run, shaving a few bucks off dinner each night will add up to way more money in your bank account than the occasional big score on furniture.With that in mind, let’s take a look at some of the best deals you can find under $10 at your local Sam’s Club.1. Member’s Mark spices: $3.68 to $9.98There are a lot of low-cost ways to improve your home cooking, not the least of which is making sure it’s spiced and seasoned properly. Sam’s Club offers a great range of popular spices, all of which have great reviews online. Prices depend on the particular spice, but they start at just $3.68. While the containers are fairly large, most spices have a shelf life of one to two years so you should have plenty of time to use them up.2. Member’s Mark over-the-counter medicines: $4.48 to $9.87Keeping the medicine cabinet stocked can get pricey, especially if you have family members who regularly go through items like allergy or heartburn medications. You can find Member’s Mark versions of many popular over-the-counter drugs, all for much less than you’d typically spend at the grocery store or drugstore. Prices vary, but start at just $4.48.3. Member’s Mark agave nectar: $7.98 Made from the agave plant, this sweet syrup has become a popular alternative to sugar and honey, especially in the vegan community as it is entirely plant-based. But while its growing popularity has helped it become more affordable, few places offer as good a price as Sam’s Club. Member’s Mark Organic Agave Nectar costs just $7.78 for a two-pack of 29-ounce bottles. While this may seem like a lot, agave nectar can last for years when stored properly.4. Member’s Mark walnuts: $7.98Not only are walnuts considered to have a wide range of health benefits, but they’re darn tasty, too. Of course, getting them out of their tough shells can be a serious workout. You can skip the hassle while also saving money by picking up Member’s Mark Natural Shelled Walnuts. A giant 3-pound bag will run you less than $8 at Sam’s Club.5. Member’s Mark broth: $8.48Alright, so the absolute best broth is always going to be one you make yourself. But who really has time to simmer chicken bones for hours? Sam’s Club offers two different Member’s Mark broths — chicken broth and beef broth — that are well-reviewed for taste and value. Get a 6-pack of 32-ounce cartons of either flavor for just $8.48.6. Member’s Mark loungewear: $8.98 to $9.98Thanks in large part to the work-from-home movement, a lot of folks have switched from business casual to business comfy (and I, for one, am happy for the change). If your new work uniform could use a few new pieces, scope out the deals at Sam’s Club. You can find a ton of different options — from knit pants to slouchy tees — for less than $10, making it easy to refresh your work-from-home wardrobe.7. Member’s Mark canned tomatoes: $9.48Canned tomato products are some of the most versatile items you can have in your pantry. You can use them for everything from a homemade pasta sauce to a hearty chili. And Sam’s Club makes it easy to keep them in stock. For just $9.48, you can get a 12-pack of 14.5-ounce cans of Member’s Mark Diced Tomatoes in Tomato Juice or a 12-pack of 15-ounce cans of Member’s Mark Tomato Sauce.Stack the savings with the right cardOn top of all of the other ways Sam’s Club can help you save, don’t forget to use a good rewards credit card when you shop. Purchase rewards from credit cards stack on top of any other type of deal or discount.
5 Things to Never Buy at Sam’s Club
By: Dana George |
Updated
June 13, 2023– First published on June 13, 2023
It’s easy to go wild while shopping at Sam’s Club. After all, there are new things to see and buy every time you walk into the warehouse store. And while many purchases are spot-on, some only make sense if you go in with a plan. Here are five things it rarely makes sense to buy at Sam’s Club. 1. Huge containers of anythingIf you’re excited by the idea of purchasing a one-gallon container of mayonnaise, you’re my kind of person. However, it may not be the best idea, particularly if you’re unsure how long it will take to consume a container of mayonnaise as large as a newborn baby.While there are dueling expert opinions on the matter, Dr. Karen Latimer is quoted in EatDelights as saying that a jar of mayonnaise can last for months if left unopened and stored away from sunlight. However, once that jar is opened and refrigerated, you have between two and three months to ensure it’s consumed. And if you accidentally leave it out for eight hours? Prepare to toss it. In short, unless you’re running a school cafeteria, a massive quantity of mayo may not be a good buy. It’s easier to save money on groceries if you’re willing to give up mega-sized products. 2. Fresh produceEvery time I walk into a warehouse store, I rack my brain to figure out who would benefit from purchasing the fresh produce. It’s colorful and looks supremely healthy, but you can’t just pick up two or three tomatoes or apples. So, unless you’re throwing a huge party and need enough avocados to put a bowl of guacamole on every table, or you’re a summer camp director and know the kids will tear through 10 pounds of onions with their burgers, you’ll probably save money by picking up the actual quantity of produce you need at your local farmer’s market or grocery store. Given that an estimated 20% of the food we buy goes to waste, making an extra stop could be worth the money. 3. SunscreenSummer is upon us, and we all know better than to allow our skin to burn in the midday sun. Sunscreen is essential, but unfortunately, it does expire. According to Mayo Clinic, we have 36 months to use sunscreen from the time it’s manufactured. The active ingredients will break down faster if exposed to excessive heat or direct sun. Picking up a three-pack of sunscreen as you browse your local Sam’s Club may seem like you’re saving money.. However, if you still find yourself squeezing sunscreen from one of those bottles three years later, you’re essentially putting lotion on your body and expecting it to protect you from the elements. 4. Vitamins and over-the-counter medicines One of the things that make vitamins and over-the-counter medicines so attractive at Sam’s Club is how much less you have to pay per unit. After all, the less you spend, the more money you’ll have to put away in a savings account, right? It’s not quite that simple.Let’s say you need to pick up Bayer Low Dose Aspirin. At Target, you’ll pay between $0.05 and $0.06 per tablet. But at Sam’s Club, you’ll pay only $0.03 per tablet. In this situation, there’s no doubt that Sam’s offers the best bargain. According to Bayer, aspirin remains 100% effective for up to four years, and you’ll probably use an entire bottle of aspirin in that time. However, it can be tough to determine when other products in the pharmacy department are due to expire. The Food & Drug Administration does not require vitamin manufacturers to put expiration dates on their products. While some manufacturers do so willingly, it’s not something you can count on. For example, if you were to pick up a 400 count bottle of Vitamin C + Zinc 500 mg at Sam’s Club today, you’d pay $0.04 per capsule. Here’s the problem: A Brazilian Journal of Pharmaceutical Sciences study found that 92% of vitamin C supplements lose efficacy after 12 months of storage. But unless you know that in advance, you don’t know if you’re getting an actual bargain. 5. Diapers and toilet paperGoing out of your way to purchase either diapers or toilet paper at Sam’s Club may cost you more than it’s worth. We all use toilet paper. Retailers know that, so they frequently discount toilet paper to lure shoppers into their stores. Chances are, you’ll score a deeper discount by purchasing TP when it’s on sale at your local market. You can compound the savings by using a coupon. The same is true of diapers. Today, the cost of Member’s Mark Newborn Diapers comes out to $0.16 per diaper. At the same time, Target’s Up & Up Newborn Diapers sell for a little less than $0.14 per diaper. It’s not a huge difference, but the savings add up when you consider how many of those things you go through while a child is young. By determining what constitutes a good buy and which products you want to avoid before walking into a Sam’s Club, you can spend less and keep more in your bank account.
5 Traps to Avoid When Shopping at Sam’s Club
By: Dana George |
Updated
June 18, 2023– First published on June 18, 2023
If you’re a Sam’s Club member, you probably employ a few tricks to make your shopping more productive. Maybe you hit one specific part of the warehouse club before heading to others. Maybe you shop alone. Or, you may just be figuring out what works best for you. As you adopt new shopping strategies, here are five things you’ll want to avoid.1. Shopping while hungryA study in the Proceedings of the National Academy of Sciences found that hungry shoppers spend more than 60% more than those who shop on a full stomach. Based on five research studies conducted by professors from the University of Southern California, Chinese University of Hong Kong, and the University of Minnesota, the researchers found something rather strange.According to Norbert Schwarz of the University of Southern California, the trio found that the desire to get food generally plants the idea of “getting stuff” in a hungry person’s mind, increasing the likelihood that they’ll be attracted to products that don’t satisfy physical hunger. The internal message “I want food,” simply becomes “I want.”2. Feeling obligated to buyThere’s a good reason Sam’s Club employs people to hand out samples. According to Inspira Marketing, 65% of consumers who try a sample purchase it during the same shopping trip. What’s more, 24% of those people say they replaced an item they planned to buy with the sampled product.Don’t get caught up in the belief that you must purchase an item just because someone was kind enough to offer you a sample. Naturally, if it’s something you really like and believe your household will consume it, go for it. But if you’re doing it to be polite, there’s no need. It truly is a marketing strategy.3. Being seduced by low pricesIt’s fair to say that most of us would rather tuck a little extra money into savings each month than overpay for the items we regularly purchase. Sam’s Club can make it easier to accomplish this goal — but only for savvy shoppers. Here are two reasons why:A product is only a “bargain” if you plan to use it in its entirety. At Sam’s, you can buy a 25-pound bag of enriched long grain rice for $13.28. At Target, you can buy the same amount of rice for $21.95. It seems like an easy choice. However, it’s not truly a bargain if you don’t end up using the entire 25-pound bag by the time it expires.There’s something about finding an item at a discounted price that makes us think twice about leaving it on the shelf. We walk away wondering if we just squandered the opportunity to snag a great deal. If you didn’t walk into Sam’s Club needing that 48-pack of AA batteries, you won’t miss them when you get home.4. Leaving the house without a listShopping from a list is one of the best ways to resist temptation. You know specifically what you need and don’t have to wander around the club trying to remind yourself. If you can get in the habit of sticking to your list, you’re sure to leave more in your checking account.A survey by retail solutions company Field Agent found that 44% of shoppers believe they spend less when they head out prepared with a shopping list, evidence that shopping lists can work.Fun fact: One of the few remaining papers from the Renaissance Man, Michelangelo, is a shopping list. Written either in the late 15th or early 16th century, it included staples like fish, soup, bread, and wine.5. Shopping on SaturdaysUnless you’re one of those rare souls who adore crowds, you may want to avoid shopping at Sam’s Club on Saturdays. The more physically uncomfortable you are, the more likely you’ll be to make hurried decisions, like buying an item you’re not sure you need. It’s tough to think clearly when you’re surrounded by noise.Instead, look for a day (or time) that tends to be less crowded. According to Sam’s Club members on Quora, you should encounter less hustle and bustle midweek. If you can’t make it midweek, the crowds are manageable early on Sundays before the church crowd floods in.As we wait for inflation to cool, perhaps the best we can do is save where we can. That may mean using money-saving apps, conducting a price comparison before we leave the house, and sticking to a shopping list.
How to Claim Your Google Class Action Settlement Cash by July 31
By: Natasha Etzel |
Updated
June 24, 2023– First published on June 24, 2023
Many of us use search engines like Google multiple times daily, and the same was true for many people 10 or more years ago. You may be owed money if you used Google between 2006 and 2013. The technology company has agreed to a $23 million settlement to resolve a user privacy class-action lawsuit. Eligible individuals can submit a claim to collect payment through July 31, 2023. Here’s what you need to know about this news.Google agrees to a $23 million settlementA class action lawsuit alleges that Google violated users’ privacy by sharing search queries with third-party websites between Oct. 26, 2006, and Sept. 30, 2013. You can file a claim if you performed a Google search and clicked on a search result during this time. Google denies any liability or wrongdoing, but has agreed to make payments to claimants who file.You may wonder how much money you can expect to receive. Since millions of users are expected to be eligible for compensation, payments will likely be small. Current estimates suggest that each claimant could be owed approximately $7.70. However, the payment amount could change as more users submit claims.While this amount of cash won’t significantly impact your checking account balance, filing a claim is worthwhile. No matter how minimal, extra cash can be a win for your personal finances. Whether you’re working to pay down credit card debt or build an emergency fund, a few extra dollars could help you reach your financial goals sooner.How to file a claim to receive a paymentThe deadline to submit a claim or exclude yourself from this class action settlement is July 31, 2023. You can file a claim if you used Google during the dates mentioned above. Below are the steps you need to take to collect the cash you’re owed:Visit the claim website and review the details of the settlement.Register to receive a class member ID.Use the class member ID sent to you to start a claim.Provide the required contact information and choose your preferred payment method (bank account, Venmo, PayPal, Venmo, Zelle, or a prepaid Mastercard)Complete and submit the claim form by July 31, 2023.Currently, there’s no set date for when to expect payment. The final approval hearing is scheduled for Oct. 12, 2023. You can visit the claim website for updates. If you wish to receive compensation, submit a claim before the deadline passes. If you do nothing, you give up your right to compensation and won’t receive a payment.This isn’t the first class action settlement of its kindGoogle isn’t the first technology company to be accused of violating users’ privacy. Facebook allegedly allowed third parties to access private user data from 2007 to 2022. The company admits no wrongdoing, but has agreed to a $725 million settlement. Claims are still being accepted for the Facebook privacy settlement through Aug. 25, 2023.If you were a Facebook user in the United States between May 24, 2007, and Dec. 22, 2022, you’re eligible to receive payment. Staying alert to class action settlements like this is worthwhile, as it could help you boost your savings account balance.
5 Reasons People Have Their Sam’s Club Membership Revoked
By: Lyle Daly |
Updated
June 29, 2023– First published on June 29, 2023
If you like shopping at Sam’s Club, the last thing you want is to lose your membership. Since it has a large selection and reasonable prices, it’s a great place to shop without too much of a hit to your finances. Fortunately, Sam’s Club doesn’t go around canceling people’s memberships for no reason. That wouldn’t be a great way to run a membership club.However, it does reserve the right to revoke membership, and it lists actionable offenses that could lead to this on its website. Here are the most common reasons for people to have their Sam’s Club membership revoked.1. Writing bad checksBounced checks could get you bounced from Sam’s Club. You might be able to fix this if it’s a one-time issue, but not if it happens on a regular basis. A better option is to pay with a rewards credit card instead of a check, so you can earn cash back or points on your purchase. If you’re one of the store’s frequent shoppers, there are Sam’s Club credit cards that are worth checking out.2. ShopliftingLike most of the actionable offenses on Sam’s Club’s list, this one’s pretty self-explanatory. Most stores ban people who get caught trying to shoplift. With those that require a membership, including Sam’s Club and Costco, they’ll usually take away your membership.3. Violent behaviorYour local Sam’s Club is not the place to throw down, even on Black Friday. You’ll most likely lose your membership, plus there’s the whole “could get arrested and spend the night in jail” part.4. Abusive, disrespectful, or threatening behavior toward an associate; profanity used toward an associateIt should go without saying, but sadly, not all customers treat retail employees well. Sam’s Club considers practically any type of rude behavior toward its associates as an actionable offense. That gives it plenty of leeway to revoke memberships of problem customers.5. Questionable returnsReturn abuse is a common issue for retailers, especially those with generous return policies. It’s the No. 1 reason people have their Costco membership revoked, and it’s also an actionable offense at Sam’s Club.You don’t need to worry if you have a legitimate return to make every now and then. Even if it has been months, or years since you made the purchase, Sam’s Club lets you return most items at any time. This stipulation about questionable returns is designed for the small percentage of customers who try to game the system. Here are a few examples of what can qualify:Returning a large number of your purchases.Frequently returning items you’ve had for a long time.Committing any sort of return fraud, such as trying to pass off an old laptop or phone as a new one.Most members won’t have any problemsThe reasons listed above are the actionable offenses that Sam’s Club specifically mentions. It can technically revoke your membership for any reason, without cause.The typical shopper doesn’t have anything to worry about. All the things Sam’s Club will ban you for aren’t exactly normal customer behavior. If someone tries to steal, start fights, or return 90% of what they buy at Sam’s Club, their membership could be revoked. The people who just shop there, enjoy the deals, and don’t yell at the employees can have a membership for as long as they want.
Comparing Cash App to Google Pay, Zelle, Venmo, and PayPal
<meta property="og:description" content="In today’s digitally-driven financial landscape, there’s a plethora of money transfer applications vying for consumers’ attention. Among these, Square’s Cash App has emerged as a powerful player, offering a unique blend of features that extend beyond the scope of a traditional money transfer service. However, competitors such as Google Pay, Zelle, Venmo, and the industry …
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Cash App, a digital money transfer service, has transformed the way we manage our finances. From sharing restaurant bills with friends to paying your gig economy contractor, this app packs a punch beyond the basics of money transfer. Think of it as your mobile money manager, where you can easily check your Cash App balance, do direct deposits, cash out, and even manage your taxes. Yes, you heard right, Cash App taxes can also be managed within the app.
History of Cash App
In 2013, the minds at Square Inc. introduced the world to Cash App. With a vision to simplify monetary transactions, they created a platform that has become a key player in the fintech revolution. It’s fascinating to observe how the app evolved from a basic peer-to-peer payment service to a fully-fledged financial solution.
How Cash App Works
Imagine this: your nephew needs quick money for school supplies. He’s in another city, and you have no idea how to send him cash without physically being there. Enter Cash App.
Once you’ve installed the app and linked your bank account, transferring money is as simple as choosing a contact, entering an amount, and hitting ‘Pay.’ The money will instantly move from your Cash App account to theirs. And voila, crisis averted!
Here are the steps to use Cash App
Step 1: Download and Install
Cash App is available for both iOS and Android devices. You can find it in the App Store or Google Play Store. Once you’ve located the app, download and install it on your device.
Step 2: Create Your Account
Open the app, where you’ll be prompted to enter your mobile number or email address. You’ll then receive a confirmation code, which you need to enter in the app. This process verifies your account and helps protect your personal information.
Step 3: Link a Bank Account
Next, you’ll be asked to link a bank account. Enter your debit card details associated with your bank account. By linking your bank account, you’ll be able to transfer funds to and from your Cash App account seamlessly.
Step 4: Create a $Cashtag
A $Cashtag is a unique identifier for your Cash App account. This is what you’ll give to people when you want to receive money, and what you’ll use when you’re sending money to others. It can be up to 20 characters long and should be something you’re comfortable sharing with others.
Step 5: Understanding the Interface
Once you’re set up, you’ll notice that the main screen is split into two main sections:
The “Cash & BTC” section displays the current balance in your Cash App account. If you’ve chosen to invest in Bitcoin via the app, your balance will be reflected here too.
The “Banking” section allows you to add cash to your balance, cash out your balance to your bank account, view transactions, or invest in stocks and Bitcoin.
Step 6: Sending Money
To send money, tap the “$” symbol at the bottom center of the screen. Enter the amount you want to send, then press “Pay.” You’ll be asked to enter the recipient’s $Cashtag, email, or phone number. Add a note to remind them what the payment is for, then press “Pay” again.
Step 7: Receiving Money
When someone sends you money, it will appear in your Cash App balance. You can keep the funds in the app for future transactions, or cash out to your bank account.
To cash out, tap the “Banking” button at the bottom of the screen, then tap “Cash Out.” You can choose to cash out instantly for a small fee, or to cash out to your bank account within 1-3 business days for free.
Step 8: Using the Cash Card
Cash App offers a free debit card called the Cash Card. You can use this card to spend your Cash App balance at any store that accepts Visa. For individuals who frequently use their credit card for purchases, the Cash App can be a great way to boost savings toward chosen goals without much work. To request a card, tap the card-shaped icon on your Cash App home screen and follow the steps.
Step 9: Investing
Cash App allows you to buy stocks or Bitcoin directly from your account. From the main screen, tap the Investing tab (looks like a chart). Here you can view your investing portfolio, search for stocks, and make trades.
Remember, investing involves risks, and it’s important to understand these before you start.
The beauty of Cash App is its simplicity. It’s a secure and versatile platform that’s ideal for quick mobile payments, money transfers, and even dabbling in investments. Whether you’re a parent paying for piano lessons or a college student splitting rent with roommates, Cash App is an option worth considering.
Cash App Features
Cash App isn’t just a money transfer service. It’s so much more. You can link it to Apple Pay or Google Pay, pay with the custom Visa debit card (known as the Cash Card), and even buy Bitcoin cryptocurrency. Cash App also offers a feature called ‘Cash App Investing.’ With it, users can invest in stocks, making the world of Wall Street accessible right from your smartphone.
One exceptional feature of Cash App is that it allows users to receive paychecks through direct deposit. This is excellent for workers in the gig economy or for anyone preferring a digital banking experience.
Is Cash App safe?
In the age of data breaches and identity theft, Cash App ensures the safety of Cash App users’ personal information through encryption and fraud detection technology. The app is designed to keep your transaction details secure, even if your phone is lost or stolen. It also provides notifications for all account activities, helping you keep an eye on your transactions.
While Cash App is a financial platform, it is not a bank. It provides banking services and debit cards through its bank partners, but a great feature is that the balance in your account protected by FDIC insurance (Federal Deposit Insurance Corporation), just like a traditional bank.
Competitor Analysis
There are other players in the digital money transfer field such as Google Pay, Zelle, Venmo, Square Cash, and PayPal. What sets Cash App apart, however, is its combination of simplicity, versatility, and user-focused design. While other services might offer similar features, Cash App’s uncluttered interface and intuitive user experience keep it at the forefront of other payment apps.
See my in-depth comparison between Cash App and its competitors
Economic Impact
The rise of apps like Cash App has changed the financial landscape dramatically. By eliminating the need for brick-and-mortar banks, they’re driving the shift towards a more digital, user-centered banking experience.
Future of Cash App
Looking forward, Cash App appears poised to expand its offerings even further. The rapid growth of fintech and evolving consumer preferences suggest that apps like Cash App could begin to offer more extensive services, such as loans or insurance products, in the not-too-distant future.
Critiques and Controversies
No service is without its challenges. Cash App has faced criticisms related to customer service and has also been used for scams. The company has taken steps to address these issues and is continually working to improve Cash App user experience and security.
Through its various features and offerings, Cash App has made managing finances a more seamless experience. Whether you’re looking to go digital with your banking, simplify money transfers, or venture into investing, Cash App may become your preferred payment method.
Cash App FAQs
To wrap things up, let’s address some common queries you may have about Cash App:
Can you withdraw money from Cash App without a card?
Yes, you can transfer money from your Cash App account to your linked bank account.
Can someone steal your money with your Cash App name?
No, your Cash App name, also known as a $Cashtag, is just an identifier for others to send money. They can’t access your funds with it.
What happens when someone sends you money on Cash App?
The money will be added to your Cash App balance. You can use it within the app or withdraw it to your linked bank account.
How do you withdraw from Cash App without a bank account?
You need to have a linked bank account or a Cash Card to withdraw money from Cash App.
Do you have to provide your Social Security Number to Cash App?
For certain functions, such as sending large amounts of money or using the app for investing, Cash App does require your Social Security Number to comply with federal regulations.
Do you need a bank account with Cash App?
You can send and receive money with just a debit card, but having a bank account linked allows you to transfer funds to and from your bank.
Is it free to make ATM withdrawals using Cash App?
There may be a fee for using ATMs with your Cash Card, but Cash App can reimburse the fees if you have at least $300 coming into the app each month, like a paycheck deposit.
Check cancellation, also known as a ‘stop payment request’, is a procedure initiated by an account holder instructing their financial institution to prevent payment on a check that has yet to be processed.
There are a variety of reasons why one might choose to cancel a check. From preventing a fraudulent check cashing, misplaced personal checks, to stop payments to an erroneous recipient, each scenario can merit a cancel request.
Risks and Limitations of Canceling a Check
Before initiating a stop payment, it’s important to understand the risks and limitations associated with this action. The most immediate consideration is the stop payment fees. Most banks and credit unions charge a fee for this service.
Additionally, there’s a time limitation for canceling a check. If the check has already been cashed or deposited into the recipient’s account, you may not be able to stop the payment. Therefore, it’s essential to act in a timely manner to ensure the effectiveness of your request.
How to Cancel a Check
Canceling a check can feel like a daunting task, especially if it’s your first time doing so. Fortunately, the process is relatively straightforward. Here’s what you need to do to cancel a check:
Verify the Check’s Status – Has It Cleared Yet?
Before initiating a stop payment request, your first step should be to determine whether the check in question has already cleared. A check that has cleared has been cashed or deposited by the recipient and the funds have been deducted from your account.
You can verify the status of your check by reviewing your transaction history through your online account or mobile banking app, or by calling your bank’s customer service. If the check has already cleared, it’s too late to stop the payment. However, if it hasn’t, you can proceed with the stop payment process. This crucial step can save you from unnecessary stop payment fees if the check has already cleared.
Contact Your Bank or Credit Union
The first step in canceling a check is to contact your financial institution promptly. Whether you bank with a credit union or a traditional banking institution, you’ll need to initiate the stop payment process as soon as you realize the need to cancel a check. Time is of the essence when it comes to preventing the payment of a potentially lost, stolen, or miswritten check.
Most financial institutions offer a variety of ways for you to contact them. This includes phone, in-person visits, online banking portals, or even mobile apps.
Information You’ll Need
Regardless of the method you choose to cancel a check, you’ll need specific information to initiate the process. Be prepared to provide the following:
Account Number
Your account number is essential in helping the bank or credit union identify which account the check is drawn from. You can typically find your account number on your bank statements, within your online account, or at the bottom of your checks.
Check Number
The check number helps the financial institution identify the exact check you wish to cancel. It can be found in the top-right corner of the check and is also printed at the bottom, right next to the account number.
Amount and Payee
You’ll need to know the exact amount the check was written for, as well as who the check was made out to, i.e., the payee. These details ensure that the bank cancels the correct check.
Confirmation of Stop Payment Request
Once you’ve provided the necessary information and initiated the stop payment request, your bank or credit union will typically provide a written confirmation of your request. This may be given in person, sent via mail, or provided digitally, depending on your chosen method of request.
This written confirmation serves as proof that you’ve requested the stop payment. It will typically include details such as the date and time of the request, the check number, and the stop payment fee (if applicable). Make sure to keep this document in a safe place for future reference.
How to Avoid Needing to Cancel a Check
While knowing how to cancel a check is important, preventing the need to do so in the first place is even more critical. Implementing safe practices when writing and issuing checks and using secure alternatives can greatly minimize potential problems.
Safe Practices When Writing and Issuing Checks
Confirm the Recipient’s Details
Before writing a check, double-check the recipient’s details. Confirm that you have spelled their name correctly and that you have the correct address if you’re mailing the check. This can prevent checks from going to the wrong address or being unable to be cashed because of a misspelled name.
Encourage Prompt Cashing
Once you’ve written the check, encourage the recipient to cash or deposit it as soon as possible. The longer a check is uncashed, the higher the risk of it being lost or stolen. Also, an uncashed check can make accounting and balance tracking more challenging, as you need to remember to account for that uncashed check in your available balance.
Use of Electronic Payment Methods
Electronic payment methods are a convenient and secure alternative to physical checks. They reduce the risk of checks being lost or stolen and eliminate the need to write checks manually. Here are a few options:
Direct Deposit
Direct deposit is a popular method for paycheck distribution but can also be used for other types of payments. It eliminates the need for a physical check and ensures that the funds reach the intended recipient’s bank account directly.
Online Banking Services
Most banks and credit unions now offer comprehensive online banking services, which include the ability to send money directly from your bank account to another. These transactions are secure and can be done from the comfort of your home or on the go. Many financial institutions even offer the ability to set up recurring payments, making it an excellent option for paying bills.
Mobile Payment Apps
Mobile payment apps have soared in popularity in recent years. Services like Venmo, PayPal, and Zelle allow users to send and receive money quickly and securely. These apps can be linked directly to your bank account or credit card and provide a convenient way to transfer funds without needing to write a check.
How much does it cost to cancel a check?
The cost to cancel a check varies by financial institution. Some banks may waive stop payment fees for premium account holders, such as those with America Advantage Relationship Banking or Citi Priority. However, for regular checking accounts or money market accounts, the stop payment fee can range anywhere from $15 to $35.
How long do you have to cancel a check?
The time frame to cancel a check depends on the specific bank or credit union. However, most financial institutions recommend that you initiate a stop payment request as soon as you realize a check needs to be cancelled. The sooner you can report a lost or stolen check, the better your chances of preventing unwanted transactions.
Can you cancel a cashier’s check?
Stopping payment on a cashier’s check is generally more complicated than stopping a regular check. Because cashier’s checks are guaranteed by the issuing bank, they are often treated as cash. However, if a cashier’s check is lost or stolen, the bank may issue a stop payment after a waiting period, typically 90 days.
Conclusion
Canceling a check is an essential skill for anyone who writes checks. It requires understanding your bank account policies, knowing how to navigate your financial institution’s website or customer service, and being proactive about spotting any potential issues with your personal checks.
Remember to keep a close eye on your transaction history and balance in your checking account or high-yield savings accounts. This will help ensure your hard-earned money stays right where it belongs. Remember, it’s not just about knowing how to cancel a check, but also knowing how to prevent the need for cancellation in the first place.
The gig economy was just beginning to blossom pre-pandemic. Between 2010 and 2020, the number of gig workers or side hustlers increased by 15%. Unlike many aspects of life, which stagnated during the pandemic, freelancing only grew. Statista reported that 73.3 million people work as freelancers in the U.S. right now, an increase from 57.3 million pre-pandemic.
Freelancing has tremendous benefits for many people. Freelancing or gig work can provide:
Flexibility
A better work-life balance
Increased income potential
But it can come with some financial complications, too.
As a freelancer, you’ll need to manage cash flow so that you’ll have money in your account to pay your bills. You’ll be responsible for paying your own taxes. And, with that in mind, you’ll want to track expenses carefully so that you can deduct the costs of running your freelance business from your bottom line.
That’s where having a business bank account can come in handy.
Why You Need a Bank Account If You Have a Side Hustle
According to tax laws, you don’t have to have a business bank account to run a side hustle or a freelance business. You can file your taxes using your Social Security number and receive a 1099 form as a sole proprietor.
But as your business grows, you may want to incorporate under a tax ID number. You may choose to register as a corporation like an S-Corp or, more commonly, a limited liability corporation or LLC. This can get confusing, so it’s important to speak to a tax account before you take this step.
If you incorporate your business, you’ll need a business checking account to keep your personal finances separate from your business expenses. You would pay yourself a salary out of your business account and use your personal bank account to pay for your daily living expenses, entertainment, and anything that isn’t considered a business expense.
Benefits of Business Accounts
Most small business owners, freelancers and side hustlers prefer to open a business account even if they aren’t incorporated. Having a dedicated business checking account makes it easier to track your business income and expenses, which makes filing taxes – and making quarterly estimated tax payments – easier. If you ever get audited, you’ll have a clear record of your personal and business finances.
Plus, if you do any sales and marketing for your freelance business, your business debit card can often pique people’s interest. You’d be surprised how having a debit card with your business name on it can help you generate leads in odd places, whether you’re at your favorite bar or paying for groceries.
If you’re ready to open a separate business account, it’s important to find one that will meet your needs.
Freelancer vs. Side Hustler vs. Entrepreneur
Before you choose a business account, you may be wondering about the differences between entrepreneurs, freelancers, and side hustlers. Which category do you fit in?
These are all loose terms to describe anyone who owns their own business or is self-employed. Self-employed is a tax designation, which means you are a 1099 contractor for other companies. This term would apply to most freelancers and side hustlers.
On the other hand, if you start your own business, you might consider yourself an entrepreneur. The dictionary defines an entrepreneur as someone who starts a business and is willing to take a financial risk in hopes of great success.
A freelancer may also take financial risks, including leaving a steady paying job. In a lot of cases, whether you describe yourself as an entrepreneur, small business owner, freelancer or side hustler is up to you.
Compare the Best Freelancer Checking Accounts
In most cases, business owners, freelancers and side hustlers can all benefit from a good business bank account. Read on as we compare the best business checking accounts for freelancers, gig workers, and entrepreneurs.
1. Lili Bank: Overall Best Bank for Freelancers
Lili calls itself “the one-stop shop for all your small business financial needs.” An online financial services company that provides business banking, accounting for freelancers, invoicing, and tax support, Lili is backed by Choice Financial Group Inc.
As a US-based bank, Choice is a member FDIC, which means your funds deposited in Lili are protected by the federal government up to $250,000 per account.
What sets Lili apart as one of the best bank accounts for freelancers?
In addition to all the other services it offers to business owners, Lili has no minimum balance requirements, no monthly fees for basic checking, and a network of 38,000+ fee-free ATMs nationwide. You can also open a business savings account and earn 1.50% APY at Lili.
Lili’s basic business checking account has no monthly fee, expense categorization for your purchases, and the ability to generate quarterly expense reports.
Alternatively, for $9 per month, you can earn 1.5% on savings, get a Visa business debit card with cashback rewards, overdraft protection up to $200 and tax, invoicing software, and accounting support.
Lili integrates with third-party services that gig workers may use, including Etsy, Shopify, Venmo, QuickBooks, and your PayPal business account.
When you compare the prices of other invoicing and online accounting services, you may find that Lili offers tremendous value for the money as one of the overall best banks for gig workers you can find.
Bluevine: Best for Business Interest Checking Account
Like Lili, Bluevine is a financial technology company. It is backed by Coastal Community Bank, Member FDIC to protect your deposits. The Bluevine business checking account offers 2.0% interest, which sets it apart from competitors.
To take advantage of the interest, you’ll need to either spend $500 per month with your Bluevine Business Debit Mastercard or receive $2,500 per month in customer payments to your Bluevine business checking account.
There are no monthly fees or minimum balance requirements and you can make unlimited transactions with no fees. Like Lili, Bluevine also offers other services for business owners.
If you are looking for a business interest checking account with value-added services, consider Bluevine. Your account integrates easily with QuickBooks, with no fees involved. Plus, you can set up sub-accounts to easily manage your money, add authorized users, and pay bills via ACH or wire transfer from your Bluevine account.
While many credit providers offer business credit cards, Bluevine is one of only a few business checking accounts that offers a business line of credit. You may qualify for a credit line of up to $250,000, with a rate as low as 6.2% interest. This interest rate is much lower than the national average of 20.46% for business credit cards right now, as reported by The Balance. Plus, you could get approved in as fast as five minutes, according to the Bluevine website.
For entrepreneurs seeking to purchase tools or resources, or freelancers in need of business equipment, Bluevine’s line of credit could provide you with the financial security you need to grow. Take note that you’ll need a credit score of 625 or more to qualify and $40,000 in monthly revenue. This is probably not a service for a gig worker, but for a seasoned entrepreneur.
Even so, it’s never too early to get started with a business checking account, especially one with no monthly fees.
Amex: Best for Debit Card Rewards and Bonus Offer
American Express is a renowned name in business and consumer rewards credit cards. But you might not be aware that the company also offers a business checking account with 1.30% APY on balances up to $500,000.
American Express also has no monthly maintenance fees, no fees on domestic ACH payments, and no fees at MoneyPass ATMs. The American Express Business Blueprint app makes it easy to manage your account.
Amex stays true to its credit card rewards roots with a rewards business debit card. Earn 1 Membership Reward point for every $2 on eligible purchases. You can combine points earned with Membership Rewards points accrued with other Amex cards, and use those points for travel, gift cards, or cash back. You can also convert those points into cash deposits directly into your new business checking account.
Amex’s bonus offer stands out to us. Earn 30,000 Membership Rewards points after you deposit $5,000 or more within the first 30 days of account opening, maintain that balance for the next 60 days, and make five or more qualifying transactions within those first 60 days.
NBKC Business Checking: Best for No Fees
If finding a business bank account with no fees is most important to you, a nbkc Business Checking account might fit the bill. The bank offers unlimited transactions with no fee, no minimum balance requirements, no monthly fees, and no opening deposit requirements either. You can also have out-of-network atm fees reimbursed for up to $12 per month.
If you are a freelancer just getting started or just looking to supplement your full-time income with a side hustle, you’ll find nbkc bank a low-cost and convenient option among free business checking accounts.
NBKC lacks some of the bells and whistles of the top choices on our list. You won’t get integrations with common business software or invoicing and accounting support. But a nbkc business checking account is free with your personal account and provides an easy way to keep your business and personal funds separate.
Novo: Best for Payment and P2P Money Transfer App Integration
Novo is another choice with no monthly maintenance fee, no monthly fee, free ACH transfers, and no minimum balance needed. Like many of the business bank accounts on this list, Novo is a financial technology company. It’s backed by Middlesex Savings bank, a Member FDIC, which means your money is protected up to $250,000 per account.
Novo is the best for business owners looking for an easy way to process payments or transfer funds. You’ll get free ACH transfers from another checking or savings account and refunds on all out-of-network ATM fees.
Novo integrates with many P2P payment apps, including Square, Shopify, and Stripe, as well as Etsy, eBay, Amazon and more.
When you use Novo Boost, you can get paid 95% faster through Stripe, or two business days before the funds would ordinarily appear in your account.
Plus, it’s quick and easy to open an account online, with approval as fast as 10 minutes – rather than days with some other online bank accounts.
Axos Bank: Best for New or Scaling Businesses
Many freelancers don’t think about opening a business account until they have incorporated their company to make that transition from self-employed to entrepreneur. If this sounds like you, Axos Bank could have the best bank accounts for you. The online bank is offering business owners who incorporated after June 2020 an extra $200 in their new business bank account.
If you aren’t newly incorporated, you can earn a $100 bonus.
Like many of the best business accounts on this list, Axos has no monthly fee, no minimum monthly average balance to hold, ATM fee reimbursements for all domestic transactions, and no minimum opening deposit. The bank accepts cash deposits or you can transfer money from other checking accounts via ACH.
Unlike many online banks, Axos offers business owners a dedicated relationship manager to help point you to the products and services that are best for your growing business.
Chase Business Complete Banking: Best for Credit Card Processing
As the largest U.S. bank, with assets of $3.31 trillion, Chase is a traditional bank that offers all the convenience of online banks. This includes personalized service, stellar fraud protection, and a host of other features and benefits we’ve come to expect from any financial institution.
The Chase Business Complete Banking account is ideal for entrepreneurs, offering unlimited transactions and no monthly fee (if you meet certain requirements). These requirements are relatively easy to meet with a $2,000 minimum balance, $2,000 in purchases on your Chase Ink Business credit card, a link to a Chase Private Client Checking account, or $2,000 in deposits from QuickAccept or Chase eligible merchant services.
The best aspect of Chase Business Complete Banking is the ability to process credit card transactions and receive funds the same day through Chase QuickAccept. (Additional fees apply.)
You can open an account with no minimum deposit to get started.
Wave Money Business Banking: Best for Free Business Banking
Wave Money integrates a free checking account with easy bookkeeping for freelancers and solopreneurs. Wave is best for those who want to improve cash flow with instant pay and want bookkeeping tools to make tax prep easier.
Wave has no monthly fee or transaction fees, so you keep more of what you earn. You can use the mobile check deposit feature for convenience, and make ACH transfers easily. There are no transaction limits with Wave, and you can also connect third party payment processors.
Wave is another fintech company, with banking provided by Community Federal Savings Bank, Member FDIC. That means your funds are insured for up to $250,000 per account.
TIAA Bank: Best for Business Investments
Besides checking accounts, TIAA Bank offers a variety of banking products for entrepreneurs and gig workers that sets it apart.
If you’re considering business savings accounts, TIAA offers CDs and money market accounts to earn interest at a rate higher than you may get with another account. Currently, TIAA’s one-year business CD offers an APY of 3.75%.
TIAA’s checking accounts offer easy online banking and mobile check deposit, along with personalized service from a business solutions specialist.
LendingClub Bank Tailored Checking: Best for Earning Checking Account Rewards
The LendingClub Bank tailored checking account for freelancers is one of the few banks on our list where you can earn interest on your checking balance, plus 1% cash back rewards when you use your debit card.
Account holders earn 1.5% APY on balances up to $100,000 and 0.10% APY on the portion of your balance that exceeds $100,000.
LendingClub Bank reimburses fees if you use an out-of-network ATM. The bank also supports QuickBooks, Quicken and Mint for budgeting and bookkeeping. You can also send digital invoices and get paid directly to your LendingClub account, making LendingClub Bank Tailored Checking one of the more robust and affordable online banks for freelancers.
Just make sure to maintain an average daily balance of at least $500 to have the monthly fee waived.
How to Choose the Best Bank Account for Your Business
When you’re evaluating business bank accounts, you’ll want to consider your needs and the features that are most important to you.
It should go without saying that you want an account with no monthly fees or no monthly fees. Unless you’re an established business owner, you may also want no minimum balance requirements. You don’t want to get saddled with fees if your business runs into cash flow problems or you have a down month.
If you run a high-volume business, look for a bank account with no transaction limits, no in-network ATM fees, and unlimited ATM fee rebates.
Need a way to manage contracts, collect invoices, and help with taxes?
Your business bank can represent much more than just a place to deposit cash and a means to pay your bills. Many of the best bank accounts on this list also offer freelancer invoicing, tax assistance, and ways to manage contracts.
Budgeting and Savings Features to Look For
When you’re a freelancer, it’s convenient to have an easy way to track your expenses and budget for not just expected costs, but surprise opportunities or financial emergencies.
Just as you should have a personal bank account established with emergency savings, you want a business savings account. In fact, you may want multiple business savings accounts or the ability to divide money into various buckets for known costs – like taxes – and unexpected expenses, such as car repairs or a new phone.
Some budgeting and savings features are nice to have, such as an interest-earning checking account and cash back on debit card purchases.
Why We Chose Lili as the Best Business Bank Account
Lili graces the top of our list because the fintech company offers so many value-added services for entrepreneurs that it’s virtually a one-stop shop for freelancers. However, the other banks on our list for best business accounts have their own benefits you might want to consider.
Should You Use Different Banks for Personal and Business Finance?
If you already have a separate bank account for your personal finance, there is something to be said for opening a business account through the same bank. You may get extra perks and benefits or waived fees. Best of all, it’s easier to use one app to manage all your personal and business banking.
But if you opt for an online financial services company, instead, it is typically easy to transfer funds between accounts. Also, companies like Lili and Bluevine specialize exclusive in business accounts, which means they have services tailored specifically to your needs.
Bottom Line
A lot of factors go into choosing the best bank account for your business checking needs. Knowing your must-haves, nice-t0-haves, and those features that don’t really matter to you can help make the decision easier.
FAQs
What is a business bank account?
A business bank account is a dedicated account separate from your personal accounts that you use to deposit cash, checks, or other customer payments earned through your business. You should also use your business checking account to pay for business expenses.
Do You Need a Business Bank Account if You’re a Freelancer?
Freelancers are not required by law to have a separate business banking account. But if your business is incorporated as an S-corp, C-corp, or LLC, you are required to keep your business and personal accounts separate.
Should You Have a Separate Bank Account If You’re a Freelancer?
Even though it’s not required by law, it’s a good idea to have an account separate from your personal checking account to help you keep track of business income and expenses.
What Makes a Business Bank Account Ideal for Freelancers?
Business bank accounts often have many of the same features as some of the best personal bank accounts. That would include low or no minimum balance requirements, no monthly maintenance fee, no transaction fees, and no hidden fees.
You may also look for features like mobile check deposit, unlimited electronic deposits, and low wire transfer fees if you have a lot of customers, clients, or vendors outside the U.S.
Methodology: How We Select the Best Bank Accounts for Freelancers and Side Hustlers
We evaluated the best bank accounts for freelancers based on the ability to earn interest, monthly maintenance fees, minimum balance requirements, the ease of making cash deposits, customer service, and more.
Some banks are better for freelancers who don’t maintain a high balance or only have a few transactions per month. Entrepreneurs with fast-growing businesses looking to scale may prefer a business checking account with unlimited transactions and the ability to accept credit card payments through the same bank.
Some business owners may want to be able to integrate their Quickbooks accounting system through their bank.
We have banks on this list designed for small business owners, freelancers and side hustlers at every stage of business growth.
No one likes bank fees but ATM fees can be particularly annoying. To many, it just seems unfair to have to hand over some of your hard-earned cash just to get access to your own cash. Plus, it’s not uncommon to get dinked twice if you go to an ATM outside your bank’s network — once by your bank (which may charge you around $2.00 to $3.50) and once by the company operating the ATM (which can run anywhere from $1.50 to a whopping $10).
Due to these double fees, hitting an out-of-network ATM on a regular basis can quickly put a dent in your bank account. The good news is that these fees are not inevitable. Here are seven simple ways to avoid ATM fees.
Planning Ahead
Before heading out for the day or evening, consider whether or not you may need cash. Some independent restaurants, stores, and barber shops still operate as cash-only businesses. So if you’re testing out a new spot, you may want to check the website so you’re prepared with cash if needed.
If an establishment only accepts cash and you don’t have any, you may get stuck using the nearest ATM, which may result in double fees. It can also be a good idea to get some cash in advance (fee-free) if you’re going to a restaurant, gas station, or store that offers a discount for paying cash.
Recommended: Pros & Cons of Living Cash-Only
Using Your Bank’s ATMs
Taking some time to familiarize yourself with your bank’s closest ATM locations (considering both home and work) can save you money and hassle down the line. There may be a location finder tool on the bank’s website or app, or you can do a general web search, or even use your phone’s maps app.
Generally, the larger, national banks will have more options for branded ATMs than smaller, regional institutions. Banks of all sizes, however, often partner with large ATM networks in order to expand their customers’ options and provide them with a fee-free banking experience.
Finding Partner ATMs
The biggest advantage of partnership networks is the potentially vast number of fee-free ATM locations available. Some of the largest networks even include ATMs in locations like convenience stores, pharmacies, and retailers.
If your bank partners with an ATM network, you may be able to perform transactions at these ATMs without getting hit with any fees from your bank, though some locations may collect ATM surcharges.
The easiest way to find your bank’s partners is to check the back of your debit card. If you see a logo for Allpoint , for example, you can search their app for the closest locations.
This doesn’t automatically mean that your transaction will be entirely fee-free, but either your bank or the partner may waive charges. It’s a good idea to check with your bank for details.
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Taking Out More Than You Need
ATM fees are typically per transaction, so one easy way to avoid extra charges is to withdraw more cash than you need. This is particularly true when traveling overseas, where surcharges can be significantly higher than domestic ATM fees. The downside is that you may feel uncomfortable keeping a bunch of cash on hand.
Recommended: ATM Withdrawal Limits – What You Need to Know
Getting Cash Back
If you need cash and aren’t near one of your bank’s ATMs, you may be able to avoid paying an ATM fee by finding a nearby grocery store, gas station, or large retailer. Many of these retailers offer cash back when you make a purchase using your debit card. If you go this route, you’ll need to make a purchase (ideally for something you need) and ask for cash back. The cashier will add the amount of cash you want to the purchase price and give it to use as cash, typically without charging any fee.
Choosing a Different Bank
Not all banks charge out-of-network ATM fees. If you’re getting hit with fees, especially double fees, you may want to consider switching to an institution that has a larger ATM network, doesn’t charge ATM fees, and/or refunds ATM fees charged by machine providers.
Some banks will reimburse up to a certain amount every month in fees charged by an out-of-network provider. If you suspect you’ll use non-network ATMs frequently, you may want to consider a bank that will refund you.
Using Personal Payment Apps to Pay Your Friends
With peer-to-peer (P2P) payment apps like Venmo, you can often avoid a trip to the ATM entirely. Once you set up an account and link your bank account, it’s easy to move money directly from your account to your friends’ accounts. Your bank may also have its own P2P payment app.
The Takeaway
ATM fees can be annoying and add up quickly. But, fortunately, this is usually an avoidable expense.
One way to avoid ATM fees is to do some research on where your financial institution’s branded ATMs are located in your area, as well as ATMs that are in their partner networks. Other options include using payment apps or asking for cash back at a retail cash register when it’s available.
Open a SoFi Checking and Savings Account
Another easy way to avoid ATM fees is to open a checking and savings account with SoFi. With SoFi Checking and Savings, you can withdraw cash at 55,000+ ATMs worldwide without paying any fees. What’s more, you’ll earn a competitive annual percentage yield (APY) and won’t pay monthly account fees that can whittle away at your balance.
Ready to say goodbye to ATM fees? Say hello to SoFi Checking and Savings.
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