HSBC’s U.S. division is under federal investigation for potentially engaging in discrimination against minority borrowers in six metropolitan areas.
The U.S. Department of Housing and Urban Development is reviewing the bank’s lending practices in majority Black and Hispanic neighborhoods within the six regions, HSBC disclosed in a regulatory filing Tuesday.
The geographic areas where HSBC is facing scrutiny include New York, Seattle and four parts of California — Los Angeles, San Francisco, Oakland and Orange County — according to the National Community Reinvestment Coalition, which filed a complaint that prompted the HUD investigation.
After the NCRC filed the complaint, HUD has been investigating whether HSBC violated federal law by engaging in discriminatory lending practices between 2018 and 2021, the bank’s filing states.
Alan Pyke, an NCRC spokesperson, said in an email that his organization, which advocates for community groups nationwide on financial and investment issues, filed the complaint earlier this year.
“Lending redlining is a violation of the Fair Housing Act,” Pyke said. The NCRC based its complaint on data suggesting “unfair treatment of disenfranchised communities and individuals,” he said.
The nonprofit group is focused on working with government agencies to “pursue any remedies they deem appropriate,” Pyke said.
A spokesperson for HSBC USA declined to comment. HUD did not respond to a request for comment.
HSBC’s U.S. arm has previously faced scrutiny in connection with fair-lending laws.
In 2016, the London-based bank agreed to a $601 million settlement with 49 U.S. states and numerous federal agencies — including HUD, the Department of Justice, the Consumer Financial Protection Bureau and the Federal Reserve — over allegations related to discriminatory mortgage lending and foreclosure practices.
In 2021, Attorney General Merrick Garland launched an interagency initiative to combat redlining.
Earlier this year, City National Bank, a unit of Royal Bank of Canada, agreed to pay a $31 million fine in the largest redlining settlement in U.S. history. The Department of Justice alleged that City National discouraged Black and Hispanic customers from applying for home loans.
In March, Park National Bank agreed to a $9 million settlement over redlining allegations in Columbus, Ohio. And last month, the DOJ announced that ESSA Bank & Trust will pay over $3 million to resolve similar allegations in the Philadelphia metro market.
In 2022, HSBC sold 10 California branch locations, along with loans and deposits associated with its West Coast consumer banking business, to Cathay General Bancorp.
The sale was part of HSBC’s broader pullback in U.S. retail banking, which also included the sale of 80 branches, mostly in the New York metropolitan area, to Citizens Financial Group.
In the family-friendly neighborhood of Encino, in the San Fernando Valley region of L.A., a former NBA All-Star’s house is looking for new owners.
Listed for $4,999,000 (Michelle Schwartz and Mauricio Umansky of The Agency hold the listing), the gated mid-century estate is currently home to former NBA player Kiki VanDeWeghe and his wife, acclaimed interior designer and structural engineer Peggy VanDeWeghe.
Kiki, whose full name is Ernest Maurice “Kiki” VanDeWeghe III, and Peggy bought the house back in 2010, per public records, and have revamped the entire residence — giving the mid-century home a refreshed, stylish look that combines bold, sophisticated design elements with wellness amenities and an overall emphasis on wellbeing and relaxation.
The single-level, 5-bedroom home has a harmonious, Feng Shui-inspired layout, accented by dramatic design elements.
The elegant dining room and wine bar are ideal for hosting large and small gatherings alike, while the zen den — featuring walnut floors and a stone fireplace with a fossil stone hearth — provides a peaceful space to unwind.
Arguably the most attractive part of the house, the family room boasts high ceilings, oak floors, and a 23-foot stone alcove wet bar that seamlessly transitions into the chef’s kitchen.
Kiki and Peggy’s primary bedroom suite is actually a fully-fledged retreat.
It features a loft, floor-to-ceiling sliding glass doors, dual bathroom vanities, a steam shower, and a massive walk-in closet.
The are 4 additional private suites, each with its own custom finishes, en-suite bathrooms and walk-in closets, and a walkout to the luxe outdoor space.
Speaking of the outdoor areas, the couple’s home features an oversized saltwater pool, an outdoor kitchen, a fire pit, a putting green, a veggie garden, and even a rooftop deck.
The long-retired hoopster, who played for the Denver Nuggets (1980-1984), the Portland Trail Blazers (1984-1989), the New York Knicks (1989-1992), and the Los Angeles Clippers (1992-1993), moved on to become the general manager of the Denver Nuggets and the New Jersey Nets, and a head coach of the Nets.
He also served as the NBA’s executive vice president of basketball operations for 8 years, playing a significant part in modernizing the league’s basketball operations during his tenure. VanDeWeghe stepped down from his position in 2021 but retained a league advisory role.
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In sunny Malibu, a newly developed neighborhood is shaping up to become the priciest and most exclusive community in the country. Dubbed The Case, the five-home, guard-gated community sits on a 24-acre bluff that’s hailed as one of Malibu’s absolute best locations.
So much so, that developer Scott Gillen paid $50 million for the land alone back in 2017, breaking local records: it was the highest price ever paid for undeveloped land in the city.
On his newly acquired land, Gillen set out to build 5 extraordinary homes, each priced between $70 million and $115 million. The first fully completed home at The Case in Malibu was the 10,527-square-foot The Edge, which landed on the market with a bang at the beginning of the year — asking $70 million.
Now, it’s time for us to take a look at another spectacular house from Gillen’s ambitious project: the $95 million Butterfly House.
Named after its butterfly roof, the striking luxury home offers more than 10,000 square feet of ultra-luxurious living space and sits on 3 flat acres of prime Malibu land with unparalleled ocean views.
Related: 17 Biggest celebrities that live in Malibu & their million-dollar homes
“The Butterfly is located at the end of Case Court overlooking the Malibu Colony and Surfrider Beach and you can see the surf breaking, with entire Santa Monica Bay unfolding with views that extend to Palos Verdes and Catalina Island with twinkling city lights at night,” developer Scott Gillen said of his newly-unveiled project, adding that “The Case is literally 2 minutes from the best shopping and dining in Malibu and the design and construction of the homes at The Case are incomparable.”
Combining world-class, modern architecture with the surrounding natural beauty of the Malibu cliffs and coastline, the Butterfly House is the epitome of luxury living in an idyllic coastal setting.
Perched on the tip of a 24-acre promontory to provide panoramic views of the Malibu coastline and vistas of the famous Queen’s Necklace, the property is accessed via two sets of guarded gates that lead visitors and future residents onto a 250-foot driveway.
All in all, the luxury property has a total of 7 bedrooms and 8 baths, spread across the main house (which has 4 en-suite bedrooms) and a separate guest house.
The open-concept great room seamlessly combines the kitchen, family, and living room, creating an inviting space for relaxation and entertainment. The custom Bulthaup kitchen has been equipped with Gaggenau and Miele appliances and features a separate prep kitchen, perfect for cooking enthusiasts.
The Butterfly House’s dramatic primary suite is a true sanctuary, featuring a cozy fireplace, a luxurious bathroom with poured terrazzo floors, a massive, oversized closet, and even a private outdoor spa. An additional media room provides extra entertainment space.
Adding to its Iron Man house vibes, the Butterfly House also features a gym and bathroom below the pool area and an underground 3-car garage with a motor court capable of accommodating over a dozen vehicles.
Heading outside, we find a massive 133-foot infinity pool that makes the most out of its oceanside location and that comes with a spa and fire features.
Listed for $95 million with Westside Estate Agency’s Stephen Shapiro and Kurt Rappaport (the agent who reportedly arranged Beyoncé and Jay-Z’s record-breaking $200 million Malibu house purchase just a few months back) this extraordinary home is one of California’s priciest listings.
Surpassed only by a handful of properties, including another Malibu showstopper — former Disney CEO Michael Eisner’s estate, listed for $195 million (!) — and late TV producer Aaron Spelling’s The Manor, listed for $155 million, the Butterfly House, much like its neighboring homes at The Case, is a status symbol. And we’re looking forward to seeing who its lucky owner will be.
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The west coast is currently being ravaged by wildfires, including five of the top ten largest wildfires in California history so far. These devastating fires have burned down hundreds of millions of acres of land, resulting in at least 36 casualties and the loss of homes, businesses, and other structures. The entire west coast is experiencing unhealthy air quality, and smoke has reached as far as the east coast and even Europe.
Aside from the immediate consequences in terms of property damage and loss of life, wildfires also have a far-reaching economic impact. From the ongoing costs related to fire suppression and prevention to the loss of revenue, expensive repairs, and insurance hikes that inevitably follow, these fires have lasting financial repercussions.
The current wildfires will have an economic impact on both a local and a national level. While states including California, Oregon, and Washington are some of the most likely to be affected by wildfires, the financial fallout has the potential to be even more widespread.
What’s Ahead:
Fire suppression costs are rising
Battling wildfires is an expensive business, and the cost to fight fires has soared from tens of millions to hundreds of millions in recent years as destructive wildfires have become more and more common.
With 2020 on track to be one of the most devastating wildfire seasons on record, the cost just to get fires under control continues to climb.
You’ll see insurance hikes
As wildfires become more common in areas across the western United States, homeowners insurance and fire insurance is getting more expensive as a result. Some homeowners who live in fire-prone areas are unable to secure insurance coverage at all, with insurance companies canceling policies in high-risk areas.
Those who are able to secure insurance will likely face increased premiums as insurance companies attempt to cover the costs of current and future wildfire seasons.
If you live in an at-risk area for wildfires, you need to make sure you have the right insurance in place to cover all of your bases. Policygenius can help you double-check that you have the right type and amount of coverage for your home – and that you’re paying the best price for it.
Temporary power cuts have affected businesses
Power companies like Pacific Gas & Electric have implemented temporary planned power shutoffs in areas where its equipment is in danger of sparking wildfires. PG&E equipment has sparked over 1,500 fires from 2014 to 2017, and officials expect continued power cuts to be a regular feature of fire seasons to come.
These power cuts can have a negative economic impact when they prevent individuals and businesses from operating as normal. While the company is working toward implementing smaller, less disruptive cuts than the power outages that caused multi-day blackouts in 2018, power cuts will still affect tens of thousands of California residents.
Businesses are also seeing a loss of revenue
The wildfires sweeping across much of the western part of the country also have a severe impact when it comes to the loss of revenue. Many businesses aren’t able to operate normally or at all, and may find it difficult to reopen in the aftermath of the fires while also dealing with other issues such as the pandemic.
Wildfires also decrease the revenue brought in by tourism, which affects everything from restaurants and small businesses to hotels and state parks.
Expensive repairs will be needed
Costly repairs will be necessary for areas where wildfires have burned down buildings and damaged infrastructure. The 2018 wildfire season caused over $40 billion worth of damage, and the 2020 season is on track to cause even more damage.
The cost of the repairs is felt both by individuals whose property has been damaged as well as government agencies responsible for repairing infrastructure and cleaning up debris.
Healthcare costs will rise for those impacted by the fires
Other indirect costs of the wildfires include the healthcare costs associated with treating injuries related to the disaster. This includes treating not only those who were directly injured by the fires themselves, but also those who inhale too much smoke and those who are injured in accidents while evacuating.
Extreme wildfires cause hazardous air quality that can lead to coughs, headaches, and shortness of breath in the short term, and chronic inflammation, heart attacks, and strokes in the long term. Those with preexisting conditions like asthma or compromised immune systems are especially vulnerable.
Economic instability may increase
A report from the Commodity Futures Trading Commission predicts that the increased frequency and intensity of natural disasters like wildfires could result in further economic instability. These disasters can have a negative impact on many disparate areas of the economy including agriculture, infrastructure, residential and commercial property, and the health and wellbeing of American citizens.
Wildfire prevention costs will rise
While strategies implemented to help prevent or curb future wildfires like controlled burns and thinning are necessary, they’re also expensive. California recently passed a bill dedicating $1 billion toward fire prevention over the course of five years, but experts warn that even that amount may not be enough to curtail future fires.
There are many personal costs as well
While it’s not an easy thing to affix a number to, increasingly devastating wildfire seasons also take a tremendous personal toll, from people grieving lost loved ones to those whose houses burned down to those dealing with anxiety and depression caused by the fires.
These losses are often exacerbated by compounding issues like the ongoing coronavirus pandemic, economic inequality, and the effects of climate change.
How to protect your finances from the impact of natural disasters
Experts predict that wildfires and other natural disasters like heat waves and hurricanes will only become more prevalent as climate change continues to accelerate. People all over the world will be negatively affected by these catastrophic events – especially if they live in places with a high risk of fire, floods, or other disasters.
Here are some steps to take in order to prepare for future disasters and keep your finances secure in the face of an increasingly uncertain world.
Make sure you have the right insurance coverage
Insurance coverage for your property is especially important if you live in an area that may be at risk of wildfires. Even if you already have insurance, it’s still a good idea to shop around and compare different policies in order to ensure that you’re getting a good deal.
Again, online tools like Policygenius make it easy to research and compare different insurance options.
Maintain a healthy emergency fund
Experts recommend that you save between three and six months worth of living expenses in an emergency fund. This financial cushion can be a major safety net when it comes to literal emergencies like wildfires as well as other unexpected expenses.
While it can be difficult to increase your savings in a time of increasing economic inequality, it’s a good idea to try to put a little away each month so that you have something to fall back on in case of hard times.
Pack an emergency bag and it keep it up to date
If you live in an area that is prone to natural disasters, you should pack an emergency bag and keep it up to date, including essential such as:
First aid kit.
Drinking water.
Non-perishable food.
A change of comfortable clothes.
Toiletries.
Medications.
Cash.
Mask.
Radio.
Flashlight.
Local maps.
Phone charger and extra battery pack.
Be sure to keep your bag up to date and to swap out any items that are too old or in danger of expiring. You may want to prepare several kits to keep with you at home, in your car, and any other place you spend a lot of time in, such as your workplace or a relative’s house.
Secure important documents
Replacing important documents can be stressful if you have to leave your house during an emergency. You should keep documents in a secure, safe place that you can access quickly if you need to.
Some important documents you may want to take with you include your social security card, birth certificate, passport, and insurance information.
When it comes to other documents like bills and financial statements, consider switching to paperless billing so that you’re able to access them electronically in the case of an emergency.
See if your qualify for tax relief or other forms of aid
If you’ve experienced financial losses due to a federally declared disaster, you may be able to deduct it on your taxes. There are also a variety of wildfire relief funds and resources available, including:
The Disaster Cash Assistance Program for Washington state residents.
Disaster loan assistance for business owners from the SBA.
FEMA Disaster Assistance.
Red Cross shelters for those impacted by natural disasters.
The California Association of Food Banks.
Masks, medicine, and other resources from Direct Relief.
Disaster Unemployment Assistance for California residents.
Summary
Some experts estimate that the damage caused by the 2020 wildfire season will have a direct cost of over $20 billion, not including the many indirect costs associated with the fires, such as insurance hikes and loss of revenue. As wildfires continue to increase due to drought, warmer temperatures, and shorter winters, they are sure to have far-reaching effects on the economy.
While many aspects of natural disasters are beyond your control, you can stay prepared by reviewing your insurance coverage, packing an emergency bag, and building up your emergency fund.
High mortgages and stubbornly elevated home prices are worsening the housing affordability crisis. A first-time homebuyer must earn roughly $64,500 per year to afford the typical U.S. “starter” home, up 13% from a year ago, according to a new report from Redfin.
In June, the typical starter home sold for a record $243,000, up 2.1% from a year earlier and up more than 45% from before the pandemic. Average mortgage rates hit 6.7% in June, up from 5.5% the year before and just under 4% before the pandemic.
New listings of starter homes dropped 23% from a year earlier in June, the biggest drop since the start of the pandemic, the report found. Meanwhile, the total number of starter homes on the market is down 15%, also the biggest drop since the start of the pandemic.
As a result of the limited supply, still-rising prices and elevated mortgage rates, sales activity for starter homes has stifled. It dropped 17% year over year in June.
The cost of financing a median-priced U.S. home, assuming a 20% downpayment, rose 12.4% from June 2022, according to Realtor.com economic researcher Hannah Jones.
Meanwhile, average U.S. wages have risen 4.4% from a year ago and roughly 20% from before the pandemic. It is not enough to make up for the jump in monthly mortgage payments and higher home prices.
To compound matters, rents remain elevated too, applying additional pressure on already challenged prospective first-time homebuyers. The typical U.S. asking rent is just $24 shy of the $2,053 peak hit in 2022.
“Buyers searching for starter homes in today’s market are on a wild goose chase because in many parts of the country, there’s no such thing as a starter home anymore,” said Redfin Senior Economist Sheharyar Bokhari. “The most affordable homes for sale are no longer affordable to people with lower budgets due to the combination of rising prices and rising rates. That’s locking many Americans out of the housing market altogether, preventing them from building equity and ultimately building lasting wealth. People who are already homeowners are sitting pretty, comparatively, because most of them have benefited from home values soaring over the last few years. That could lead to the wealth gap in this country becoming even more drastic.”
San Francisco, Austin and Phoenix buck the trend
A homebuyer in San Francisco must earn $241,200 to afford the typical “starter” home, down 4.5% ($11,300) from a year earlier. Austin buyers must earn $92,000, down 3.3% year over year, and Phoenix buyers must earn $86,100, down about 1%.
Those are also the metros where prices of starter homes have declined most, with median sale prices down 13.3% to $910,000 in San Francisco, down 12.2% to $347,300 in Austin, and down 9.7% to $325,000 in Phoenix.
The housing markets in Austin and Phoenix have fallen back down to earth since the remote-work relocations craze stopped. High mortgage rates and scarce listings brought down home prices as well.
Florida is the state where the income necessary to buy a starter home has risen the most
The biggest uptick of the 50 most populous US metro goes to Fort Lauderdale, Florida. There, buyers need to earn $58,300 per year to purchase a $220,000 home, up 28% from a year earlier. Next comes Miami, where buyers need to earn $79,500 (up 24.8%) to afford the typical $300,000 starter home. Third is Newark, NJ, where buyers need $88,800 (up 21.1%) to afford a $335,000 home. The three metros also had the biggest starter-home price increases, with prices up 15.8% year over year, 13.2% and 9.8%, respectively.
Meanwhile, starter-home prices are down year over year in 13 metros, mostly expensive West Coast markets, with the next-biggest declines in San Jose, CA (-8.7% to $925,000), Sacramento, CA (-7.3% to $417,000) and Oakland, CA (-7.3% to $630,000).
Starter-home prices also dropped in Las Vegas, Seattle, Denver, Los Angeles, Portland, OR, Anaheim, CA, San Diego, Riverside, CA, Pittsburgh and Minneapolis. However, in those places, lower prices often don’t make up for higher mortgage rates.
More than one-third (36.6%) of the country’s starter homes were purchased in cash in May, down just slightly from the previous month’s decade-high and up from 35.2% a year earlier.
Real estate investors are buying up a sizable chunk of today’s affordable homes. A record 41% of investor purchases were small homes–those with 1,400 or fewer square feet–in the first quarter. That’s up from 37% a year earlier.
Right off the shore of Oahu island, Honolulu‘s skyline rises along the water. From crystal clear beaches to great hiking on Diamond Head and surfing on the North Shore, Hawaii is truly a paradise.
Honolulu is Hawaii’s business and cultural center, as well as the home to the Pearl Harbor naval base. Beyond tourism, Honolulu’s major employers are in the banking and transportation industries.
But, what if you wanted to live there and have access to that every day?
In 2020, Kiplinger found Honolulu one of the top 20 most expensive cities in the U.S. Honolulu’s cost of living is higher than most due to the city and state having to import goods from other places via boat or by plane.
When compared to the national cost of living rate, Honolulu clocks at 92.7 percent higher than the national average. That’s five percent higher than in 2021.
Still thinking of making Hawaii’s capital your home? Here’s a glimpse at the cost of living in Honolulu.
Honolulu housing prices
These days, as rent prices continue to skyrocket, housing costs are the first thing you should look for as a prospective resident. Monthly rent cost is one of the main lines of your budget — in theory, you shouldn’t spend more than 30 percent of your income on rent. In Honolulu, housing prices are 220.7 percent above the national average as of 2022.
The average rent in Honolulu for a one-bedroom apartment is $3,085 per month, a 29 percent increase from 2021. A two-bedroom costs $4,890 per month on average, a 188 percent year-over-year increase.
You’ll find the highest one-bedroom rents in Waikiki, home to Honolulu’s nightlife, high-end shopping and surf beach. If you move inland to Palolo, you’ll find more affordable one-bedroom rents at $1,600 per month on average, only four miles from downtown Honolulu.
Average rent prices in cities near Honolulu
If the hustle of downtown Honolulu is not for you, there are options across the island for more affordable housing in quieter neighborhoods. These neighborhoods’ rent prices have remained relatively stable in the past year.
Here are a few examples of the average rent for a one-bedroom apartment in cities near Honolulu:
Home prices in Honolulu
Just like across the mainland U.S., Honolulu is no stranger to a hot housing market and low inventory. After all, an island has only so many options for housing.
The current median home price in Honolulu is $565,000, an increase of nearly 11 percent over the past year. Homes are currently selling for about two percent above the list price, according to Redfin, and go pending in just 32 days with multiple offers.
However, when you look closely at the housing market, the median sale price for a single-family home in Honolulu is $1.3 million, while a condo falls into the $507,500 range.
Honolulu food prices
Living near the ocean has its perks. Honolulu boasts fresh seafood, delicious fruits and vegetables grown locally. Local dining is also influenced by Japanese culture and local Indigenous groups. Poke, spam and pork are the most popular dishes you’ll see.
You’ll find fine dining restaurants in resorts that cater to tourists, as well as food trucks and stands with delicious food for a more casual experience. Dining out for two people averages between $18 and $87.50 per person, depending on the restaurant.
You’ll find local breweries like Hana Koa Brewing Co. and Stewbum & Stonewall Brewing Co. serving cold pints.
For those looking to eat at home, groceries are 52.7 percent above the U.S. average in 2022. While some produce is grown on the island, most basic items come from the mainland U.S. or elsewhere in the world. Grocery food decreased five percent since 2021.
A steak at the grocery store will cost $19.39 and other foods like eggs ($3.97), milk ($4.05), potatoes ($9.17) and bread ($5.07) also are above the national average.
Staying on a budget is difficult in Honolulu, but a good balance between dining out and groceries can help.
Honolulu utility prices
Hawaii’s mild weather helps when it comes to heating or cooling your home. The average temperature in the hottest month in Hawaii is 88 degrees Fahrenheit and the lowest is around 60 degrees Fahrenheit. Nothing a fan and an open window with a sea breeze can’t fix.
This is a good thing since utilities cost 44.6 percent above the national average in Honolulu. While renewable energy is growing on the island, it’s still expensive to power up the city. An average electric bill can cost $318 per month.
Phone bills average around $182.61, on par with most U.S. cities.
Honolulu transportation prices
After rent prices, transportation is the second factor you should take into consideration. Distance to work, friends and family and favorite restaurants can make all the difference, especially as transportation costs get higher.
Transportation costs in Honolulu are 24.2 percent higher than the U.S. average (six percent lower than in 2021). While a car is always more convenient, gasoline prices have increased in the past year to $4.29 a gallon.
Also, when thinking about a car, you have also take maintenance into consideration. Car maintenance like a tire balance costs $61.60, higher than the national average. Parking in Honolulu is expensive, $4.50 per hour on average except for Sundays and holidays.
Luckily, Honolulu offers other methods of transportation, including the bus, scooters and even bicycles. The city has a 60 bike score, with bike lanes throughout. The walking score for Honolulu is 74, depending on the neighborhood.
For public transit, the HOLO bus costs $3 for a single ride, anywhere on Oahu island. You can pick them up at 7-Eleven or any supermarket on the island. A monthly pass is $80 for an adult, while a day pass costs $7.50 per adult.
Of course, taxis and ride-sharing apps are available but are more expensive. Just make sure that you’re near one of these options when looking at apartments in your budget.
Honolulu healthcare prices
Healthcare costs will depend on the individual and whether they have insurance. And even with insurance, costs will differ. Healthcare is 20 percent higher than the national average in Honolulu.
Going to the eye doctor will cost you around $162.96 per visit and the dentist, around $95.60. Prescription drugs cost around $528.75, while over-the-counter meds like ibuprofen average around $13.47.
Honolulu goods and services prices
Your budget should have items for recreation and household things like haircuts and dry-cleaning. Overall, you’ll pay nearly 30 percent more on goods and services in Honolulu than the national average. An average trip to dry cleaning will cost $23.64.
A haircut will set you back $17.36, while a more involved salon visit (think color, treatment, etc) will cost $73.80. It’s pretty high, especially compared with a West Coast metro like Seattle, where a salon visit is around $57.70.
For a night out, you’ll pay $14.58 for a movie, around $10 for a beer pint with pizza costing $14.99. That’s for one person, the costs can definitely add up.
Taxes in Honolulu
Another big factor you’ll have to take into consideration is taxes, both state income tax and sales tax. These taxes can add a significant burden to your budget unexpectedly.
In Honolulu, sales tax is 4.5 percent (4 percent from the state and 0.5 percent from Honolulu county). So, if you made a $1,000 purchase, you’ll pay an additional $45 in sales tax.
Hawaii’s individual income tax ranges from 1.4 percent to 11 percent, according to the Tax Foundation.
How much do I need to earn to live in Hawaii?
According to the U.S. Census Bureau, the average income in Honolulu (according to 2019 figures) is $87,722 per year. The average salary in Honolulu is $69,000/year.
An average one-bedroom in Honolulu goes for $3,150 per month. This means that you’ll spend $37,800 on rent annually.
It’s important to stick to the 30 percent as much as you can in your budget to allow you to have enough left over for groceries, recreation and incidentals. To find out if you can afford the cost of living in Honolulu, check out our free rent calculator.
Living in Honolulu
Honolulu, a paradise in the middle of the Pacific Ocean, can quickly turn you from a tourist to a resident, thanks to its mild weather and beautiful beaches. However, the cost of living in Honolulu is something to consider since island living is a little more expensive than the mainland U.S.
Whether you want to find a quiet neighborhood or live in the middle of Waikiki, there are beautiful homes available for you. Just make sure to check your budget — twice.
Find apartments for rent in Honolulu today!
The Cost of Living Index comes from coli.org.
The rent information included in this summary is based on a calculation of multifamily rental property inventory on Rent. as of August 2022.
Rent prices are for illustrative purposes only. This information does not constitute a pricing guarantee or financial advice related to the rental market.
Qatar Airways is one of the world’s most premium airlines, with an excellent business-class product and great lounges at its hub in Doha, Qatar’s Hamad International Airport (DOH). The airline has a huge route network as well, with routes to major U.S. airports like Chicago’s O’Hare International Airport (ORD), Dallas Fort Worth International Airport (DFW) and Philadelphia International Airport (PHL).
The Oneworld member has its own loyalty program called Qatar Airways Privilege Club and uses the popular points currency Avios. With this loyalty program, you can earn and redeem miles when flying Qatar Airways and its Oneworld partners. Plus, it has three elite status levels that give frequent flyers special privileges like entry to lounges and access to preferred seating.
New to the carrier’s Privilege Club? You’re in the right place. Here is everything you need to know about the program.
What are Avios?
Avios is the points currency used by the following loyalty programs:
Avios can be transferred between any of these programs at a ratio of 1:1, so each Avios is theoretically worth the same in each program. However, there are different ways in which Avios can be redeemed in each program, meaning the savvy reader can achieve different values depending on which program they are used in … and how.
This guide focuses on Avios earned and redeemed through the Qatar Airways Privilege Club program.
Elite status
Qatar Airways has three elite status tiers beyond the entry-level Burgundy level: Silver, Gold and Platinum. You can qualify for these tiers by earning a certain number of Qpoints by flying with Qatar Airways and its partners. To view how many Qpoints you’ll earn with each flight, use the Qatar Airways’ My Calculator.
Below is a look at how many Qpoints you’ll need to qualify for each tier. You must earn these within a single 12-month period. Once you’ve qualified for Silver, you can upgrade by earning a higher number of points within 12 months of earning Silver. This is considered your “renewal date.”
Tier
Qpoints required
Silver
150
Gold
300
Platinum
600
Interestingly enough, fewer Qpoints are required to renew your elite status. You can either earn a smaller number of Qpoints in 12 months or a higher number in 24 months — each calculated from your renewal date.
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Tier
Qpoints required (12 months from renewal date)
Qpoints required (24 months from renewal date)
Silver
135
270
Gold
270
540
Platinum
540
1,080
If you fail to meet renewal requirements, you’ll drop to the tier you did qualify for.
Additionally, you must earn at least 20% of your Qpoints on flights marketed or operated by Qatar Airways to qualify. Alternatively, you can fly four Qatar Airways segments on 12-month renewals or eight Qatar Airways segments on 24-month renewals to meet this requirement.
Elite status benefits
Silver (Oneworld Ruby) is Qatar’s lowest elite status tier and includes the following benefits:
Discounted seat reservation
50% bonus Avios
Family member bonus
Lounge access (no guests)
Two guest lounge passes
Free checked baggage
Priority boarding and check-in
Personalized bag tags
Priority wait-listing
Oneworld Ruby status
Gold status (Oneworld Sapphire) includes all Silver benefits, plus the following perks:
Preferred seating
Guaranteed economy awards
75% bonus Avios
5% discount on redemptions
Lounge access (one guest)
Four guest lounge passes
Priority baggage handling
Extra baggage
Priority phone support
Al Maha Gold Service
Qatar’s top-tier Platinum elite status is the equivalent of the valuable Oneworld Emerald status. This tier includes all Gold status benefits, plus the following perks:
100% bonus Avios
Lounge access (two guests)
Five guest lounge passes
Read more: Your complete guide to Oneworld alliance benefits
How to earn Avios with Qatar Airways Privilege Club
Citi ThankYou Rewards
The easiest way for U.S. travelers to earn Qatar Avios is by transferring Citi ThankYou Rewards points to Privilege Club. Points transfer to Qatar Avios at a 1:1 ratio, though transfers usually take around two days to process.
You can earn Citi ThankYou Rewards with the Citi Premier® Card (see rates and fees). Note that if you’re still holding on to the Citi Prestige® Card, which is no longer open to new applicants, you also have the full transfer benefits.
That said, like Chase Ultimate Rewards, you can combine your Citi ThankYou Rewards points into a single account for select products, allowing you to effectively “convert” your fixed-value earnings from cards like the Citi Rewards+® Card (see rates and fees) and the Citi® Double Cash Card (see rates and fees) into fully transferable ThankYou rewards.
The information for the Citi Prestige has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
Transfer from other Avios programs
You can also transfer Avios from British Airways Executive Club, Iberia Plus or Aer Lingus AerClub at a 1:1 rate in any direction.
The following cards all currently offer strong welcome bonuses that you could easily convert to Avios in these three programs (and then convert to Privilege Club):
American Express® Gold Card: Earn 60,000 Membership Rewards points after you spend $4,000 on purchases in the first six months of account opening. Terms apply.
The Platinum Card® from American Express: Earn 80,000 Membership Rewards points after you spend $6,000 on purchases within the first six months of card membership. Check to see if you’re targeted for a 125,000-point welcome offer through CardMatch (offer subject to change at any time). Terms apply.
Capital One Venture Rewards Credit Card (see rates and fees): Earn 75,000 bonus miles once you spend $4,000 on purchases within the first three months from account opening.
Capital One Venture X Rewards Credit Card (see rates and fees): Earn 75,000 bonus miles once you spend $4,000 on purchases within the first three months from account opening.
Chase Sapphire Preferred Card: Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.
Chase Sapphire Reserve: Earn 60,000 bonus points after you spend $4,000 on purchases in the first three months from account opening.
Ink Business Preferred Credit Card: Earn 100,000 bonus points after you spend $8,000 on purchases in the first three months from account opening.
You can also purchase Avios, which are often on sale.
Transfer from Marriott Bonvoy
Alternatively, you can transfer Marriott Bonvoy points to Qatar Airways Privilege Club at a 3:1 ratio. As an added perk, you’ll get a 5,000-mile bonus when you transfer 60,000 points. This means transferring 60,000 points nets you 25,000 Privilege Club Avios, a nice chunk of miles.
Earn Avios by flying Qatar Airways
You can also earn Avios when taking paid Qatar-operated flights around the world. The number of Avios you earn depends on your cabin and ticketed fare class. Qatar Airways Privilege Club still awards Avios based on the distance flown, but bear in mind that most discounted fare classes will earn at a much lower rate than higher-tier fares.
Here’s a table that details how you’ll accrue Avios on Qatar flights.
To see information for a specific itinerary, you can use Qatar’s online calculator.
Earn Avios with program partners
You can also earn Qatar Avios for flights on any of the following Oneworld airlines:
Alaska Airlines
American Airlines
British Airways
Cathay Pacific
Finnair
Iberia, including Iberia Express and Air Nostrum
Japan Airlines
Malaysia Airlines
Qantas, including QantasLink and Jetconnect
Royal Air Maroc
Royal Jordanian Airlines
S7 Airlines (currently suspended)
SriLankan Airlines
Privilege Club also partners with the following airlines outside of Oneworld:
These flights follow a similar earning scheme to Qatar Airways, but you can use the aforementioned calculator for more details.
Redeeming Qatar Airways Privilege Club Avios
Booking Qatar Airways flights with miles
Qatar Airways has what is widely considered one of the world’s best business-class products with its award-winning Qsuite product. Even the carrier’s economy product is a solid option. Here are the prices for popular one-way itineraries per person on any date (there is no peak or off-peak pricing).
New York’s John F. Kennedy International Airport (JFK) to DOH in business class
70,000 + $73.35
JFK to DOH in economy
35,000 + $62.35
JFK to Delhi, India’s Indira Gandhi International Airport (DEL) in business class
80,000 + $201.50
JFK to DEL in economy
40,000 + $131.50
JFK to Bangkok’s Suvarnabhumi Airport (BKK) in business class
95,000 + $202.90
JFK to BKK in economy
47,500 + $132.90
Los Angeles International Airport (LAX) to Dubai International Airport (DXB) in economy
37,500 + $132.90
Edinburgh Airport (EDI) to Tokyo’s Narita International Airport (NRT) in business class
80,000 + $440.42
Paris-Charles de Gaulle Airport (CDG) to Bali, Indonesia’s Ngurah Rai International Airport (DPS) in economy
40,000 + $175.49
Availability can be limited, especially in premium cabins, so the further in advance you can book, the more likely you are to find one or more seats on the dates you need.
Upgrading Qatar Airways flights with miles
You can also use your Qatar miles to upgrade paid flights operated by the airline. Like award tickets, you must use the airline’s calculator to find the cost of upgrading a specific flight based on your route and fare class.
For example, you can upgrade the cheapest economy class ticket from the East Coast to Doha to a business-class seat for 55,000 miles one-way. This isn’t much cheaper than booking an award ticket, so we recommend steering clear of these unless you have booked an extremely cheap cash fare.
Additionally, you need to find available upgrade space in order to upgrade your ticket. You can do this by calling the airline or attempting to upgrade a ticket online.
Booking partner flights with miles
Earlier this year, Qatar lowered the award prices for many partner-operated flights, bringing them in line with other Avios currencies. Here’s the award chart for all Privilege Club partner redemptions, including Oneworld and other carriers:
Distance (miles)
Economy class (Avios)
Premium economy (Avios)
Business class (Avios)
First class (Avios)
0-650
6,000
9,000
12,500
24,000
651-1,151
9,000
12,500
16,500
33,000
1,152-2,000
11,000
16,500
22,000
44,000
2,001-3,000
13,000
25,250
38,750
51,500
3,001-4,000
20,750
41,250
62,000
82,500
4,001-5,500
25,750
51,500
77,250
103,000
5,501-6,500
31,000
62,000
92,750
123,750
6,501-7,000
36,250
72,250
108,250
144,250
7,001-plus
51,500
103,000
154,500
206,000
The award chart closely resembles British Airways’ partner award chart, meaning both programs have the same sweet spots:
Short-haul redemptions on American Airlines or Alaska Airlines start from just 6,000 Avios each way with no peak or off-peak pricing.
American Airlines regularly flies internationally configured wide-body aircraft on domestic routes, including 777s and 787s. For example, American’s flagship 777-300ER operates some flights between JFK and Miami International Airport (MIA), a 1,089-mile journey. You could book a business-class award on this flight for only 16,500 Avios, which is a great deal.
Fly from major West Coast cities to the Hawaiian Islands for just 13,000 Avios on American Airlines or Alaska Airlines.
Unfortunately, ticketing these awards is challenging. Unless you’re redeeming your Qatar Avios for an American Airlines or a British Airways flight, you won’t be able to book your partner redemption on Qatar’s website. To redeem your Qatar Avios on a partner flight, you can call Qatar Airways Privilege Club at 800-988-6128. Know, though, that the call center is only open during working hours on weekdays.
You can also see flight partner schedules by selecting “book award ticket” on Qatar’s website. You can then submit a request to book a partner flight, and a Qatar agent will process your reservation if there’s award space. We don’t recommend this option since award space can rapidly change. Instead, we suggest transferring Avios to British Airways so you have more partner flight options you can book online.
Related: The best ways to redeem British Airways Avios
Other redemption options
You can also use your Qatar Avios for merchandise, duty-free items, hotel stays and more. We generally recommend staying away from these types of redemptions, as they’ll almost always give you less value than a free flight, often dropping the value to half a cent per mile (or less).
Bottom line
Qatar Airways has fabulous products on the ground and in the air. If you have never flown long-haul business class, you can’t go wrong with the world-famous Qsuites to Doha and beyond.
While the program previously flew under the radar due to some uncompetitive pricing and complex booking options, adopting the already popular Avios currency in 2022 has opened up new ways to easily earn and redeem Avios in the program. The ability to easily transfer Avios between four different airline loyalty programs makes the program much more attractive, especially as Privilege Club now has the same short-haul sweet spots that are so popular when redeeming Avios through the British Airways Executive Club program.
People have wondered for decades whether it’s more worthwhile to have a high-paying, stressful job or a more peaceful job with a smaller paycheck. One gives you better resources but less time or energy to enjoy them. The other offers you time to enjoy your hobbies but less capital to invest in them or in luxury. As a 20-something, which one would you choose?
1. Consider the Cost of Living
When you’re making a difficult choice that would affect you long-term, consider other factors like the cost of living. For instance, will the lower-paying job still allow you to live comfortably, or will you be existing paycheck to paycheck? And beyond that: if you take a higher salary, will you be required to move somewhere with a much higher cost of living, which will essentially keep you paycheck to paycheck? It’s important to ask those questions before you move across the country for a glamorous job that still barely pays the bills.
The point is that not all high salaries are good, especially if you live in a very expensive city like New York. So before you take a new job, do some research. Figure out the average cost of rent and basic needs like groceries and clothing, so you can make a more informed choice.
2. Stress-Free Salary
One user stated, “I’ve been working for 30-40% less than everyone else my entire career just so I can have a stress-free life with more time for family and have my weekends for me. Sure, I don’t have a million-dollar nest egg or drive fancy cars and have a big house, but I’m [really] happy.”
Another person replied, “I used to work doubles all the time because I thought I needed to keep making money to finally get out of restaurant work. Did this throughout my entire 20s, I also had depression for 15 years. Found a restaurant where I can make a living only working 4 days a week, 25ish hours a week when I was 33. I’m almost 35 now, but my depression is gone, I have more time for my hobbies, and I’m happier than I’ve ever been. I cannot begin to stress how important a work-life balance is. I don’t think I can ever go back to 5 days a week.”
Another commenter added, “This x100. All my friends that work a lot and make a lot of money have nothing to talk about when we hang out aside from how much they work.”
3. Prioritize Your Health
It’s true when they say, “Health is wealth.” Give it the priority, whether it’s about your physical or mental health. After all, you can’t enjoy all the money you’ve earned when you’re sick.
One person shared, “Your health and happiness is more important than money. You have all your life to work, OP. Don’t listen to the ghouls, money will come and go, but your time is irreplaceable. Go and find happiness.”
4. Minimize Your Stress
For some people, money is everything. They’ll do anything—even if it will cost their mental health—to build wealth as soon as possible. However, some people are against it.
One user said, “I had the most stressful job of my entire life at age 20. The lesson I learned from that is to aim for the least possible stress in any scenario that results with me getting what I want. From choosing the least stressful routes for my daily commute (as opposed to the fastest or shortest) to taking the jobs that would be easiest on my mental well-being and my family’s health. I actively seek to put myself in less stressful situations. I’m 40 now, healthy, well-off, and with a happy family. Your mileage may vary.”
5. Cultural Environment Matters
Choosing between a high-salary job and a low-stress environment is not always enough. Sometimes it’s good to check on the culture of the place you’re considering moving to as well. Are you moving from one large city to another? There may not be a huge change. Then again, if you’re going from the East or west coast to a large city in the Midwest, there may be some culture shock.
“I think quality of life matters a lot, but I would offer that culture is important as well. If you are going from Philly to Austin, ok, sure not a huge change. If you are going from NYC to Selma, Alabama you might notice your life is very different. The money is one factor, and lower stress is almost always good, but what you do every day with that free time is worth considering,” one commenter said.
6. Pay Cuts may be Worth It
When you hear the word “pay cut,” people are usually reluctant to consider the job further. However, some people are giving up their current jobs with high paychecks for another job with 20-40% less than what they receive.
“I took a 45% pay cut at 31 from a 90-100k a year job to a 50k a year, and it was the best decision of my life. The work-life balance is much better. It’s not commission based, so the stress is so much lower. And with COVID happening, my position is now also 100% WFH,” one user stated.
7. Don’t Fall for Big Money
One user shared, “A lot of people fall into the trap of $$$ is what makes the job attractive. That shouldn’t be the case. For example, I work for a very popular entertainment company and could make anywhere from 25%-30% more at a different company. Though my quality of life would take a massive hit, the extra money is not worth it. I am currently on paternity leave at full salary for 6 months. That is huge. Not only that, but I get: Weekends off (rare in the entertainment world), unlimited vacation, work from home, learning or promotional opportunities, and great company culture. Those are priceless.”
Don’t just consider the large dollar signs; look at the other benefits as well. Your high salary may not be worth it if it takes a toll on your mental health.
8. Earn While You Can
While this might be a different take, some people would choose a high-paying job and hold on it to build wealth for retirement. Building wealth early means that you can take advantage of the power of compounding.
One person commented, “Nah lol. Get paid while you can, man. $30,000 today, minus 17% taxes, call it $25,000. You’re 27. Not that you’ll invest it, but let’s say you did. Expect 8% return on investments… round that down to 7.2%, where your money will double every 10 years. 40 years from now you’ll be at the retirement age. So double that $25,000 four times. 25… 50… 100… 200… $400,000. Every $30,000 you don’t make today is $400,000 you don’t have 40 years from now. Seems crazy, but that’s the math.”
9. Don’t Jump at Every Glowing Offer
One person stated, “I will not tell you either way, but I will say that on the other side, a 15 to 30% raise for a stressful, high pressure, long hours job wouldn’t get me to quit my current job of 14 years that has excellent life-work balance, decent benefits, I get to WFH and I get treated well and with respect and my input to the company matters. I don’t get paid the very best, but I can afford my life, I have saving and retirement, and my stress in life isn’t from work. I actually had to battle with this question when I got offered a job that was a pretty good pay raise but the reviews on the company really sounded like they ran you in to the ground and have a very high turnover. I opted to stay with my current company for less money but for more flexibility, respect, and job security.”
10. Acknowledge Your Own Burnout
Someone stated, “I burnt out at 26 and had to take a one-year hiatus where I moved back in with my parents and didn’t work at all. The lesson I learned was that if you feel you might be burning out, then take the hit and recover before you have to take an even bigger hit.”
If you think you’ve been burned out from your previous job, take a rest. Spend more time by yourself and do your thing until you recover.
11. Life is Greater than money
One user shared, “Older guy here. I realized that more money doesn’t equate to my happiness when it comes to increase work demands. I could have moved up several notches at my job over the last 5 years and just chose not to. More responsibility and working longer hours will not make me happy. Life is short, man. Enjoy the ride.”
Source: Reddit.
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There’s more to banking than low monthly fees, high yield savings, and a large ATM network. More Americans today seek banks and credit unions that align with their values when it comes to sustainability and social responsibility.
The U.S. banking system tends to disregard lower income and rural communities, with traditional banks establishing multiple branches in the country’s largest and wealthiest cities. The most socially responsible banks, on the other hand, provide online banking, low monthly fees, and no minimum deposit requirements, making them accessible to lower income individuals and families. They may also support efforts to help lower income individuals qualify for personal loans, auto loans or mortgages at fair interest rates.
But that’s not all that comes with socially responsible banking. Socially responsible banks emphasize financial literacy for those in their local community. They might also consider their organization a green bank, committed to fighting climate change and avoiding projects that support fossil fuels.
10 Best Socially Responsible Banks and Credit Unions
The best socially responsible banking institutions combine sustainability, accessibility, transparency and ethics to help make the world a better place. Yet, you won’t sacrifice top-notch personal checking and savings or even high-quality business banking when you choose one of the financial institutions on our list. You can have the best of all worlds – and do what’s best for the world – by choosing a socially responsible bank or credit union.
1. Aspiration: Best for Online and Mobile Banking Services
Aspiration is not a bank. But it’s one of the best cash management accounts offered anywhere online, with no monthly fee and a host of money management features. The Aspiration Plus Spend Save account that offers 3% interest on savings.
Aspiration is a certified B-Corp that shows its commitment to socially responsible banking with a variety of programs. Aspiration will plant a tree each time you round up a debit card purchase to deposit the difference in your Save account. It pays 3% to 5% cash back on debit card purchases with companies that are members of the Conscience Coalition, a group of small businesses devoted to social responsibility and sustainability.
Aspiration offers two accounts: One asks members to “Pay-What-Is-Fair,” which means you can use the account for free if you choose. Aspiration Plus costs $7.99 monthly or $71.88 annually (save $24 when you pay upfront.) Save accounts in the Pay What Is Fair model earn 1% APY, while Aspiration Plus savings accounts earn 3% APY.
2. Amalgamated Bank: Best for Investment Planning
Amalgamated Bank has branch locations in the nation’s largest cities: Boston, New York, San Francisco and Washington D.C. The bank offers personal checking and savings accounts with no monthly fees.
Amalgamated Bank offers four checking account tiers, including three interest bearing accounts. Two of the accounts have no minimum opening deposit. If you choose the interest earning Give-Back Checking account, you’ll earn a high APY of 0.90% – 0.95%, with an additional contribution of one-half of your interest earnings going to the charitable organization of your choice.
In addition to its choices in checking and savings accounts, Amalgamated Bank stands out when it comes to helping new retail investors choose ESG companies to invest in and plan for their future.
3. Spring Bank: Best for New Yorkers
Hailed as New York’s first B Corp bank, Spring Bank offers personal and business banking online and at branches in Harlem and the Bronx. The Green Checking account offers no monthly fee with direct deposit, paperless statements and no overdraft fees. If you need an account to write checks, you’ll want to choose the Basic Checking account.
Spring Bank deposits are insured by the Federal Deposit Insurance Corporation, up to $250,000 per depositor, per account. But the bank works with the IntraFi Network to also insure multi-million dollar deposits across multiple reputable U.S. banks.
Spring Bank offers CDs with terms from 90 days up to five years with a minimum deposit of just $250 and interest rates ranging from1.50% APY up to 3.25% APY. The bank also has a high-yield Vacation/Club savings account for short-term savings.
Spring Bank ranks in the top 5% of all 3,000 B Corps across the world and earned awards for its Governance and Customer Service in 2022. The company strives to provide affordable financial products, enabling its customers to avoid what it calls “fringe” financial products like check-cashing services and payday loans.
The bank also supports small businesses in New York and beyond with business checking accounts, money market accounts, and business loans.
4. Beneficial State Bank: Best for West Coast Residents
With seven locations across California, Oregon, and Washington, Beneficial State Bank is the B Corp bank of choice for those on the West Coast. The bank’s majority owner is Beneficial State Foundation, a nonprofit organization serving the public interest.
Beneficial State Bank offers three checking accounts, all with a $50 minimum opening balance and a low monthly service charge. eChecking waives the monthly fee if you sign up for eStatements. Checking and Interest Checking products have low monthly service charges that are easy to waive if you meet certain criteria. The bank also has savings, money market, CD, and IRA accounts to help you meet your long-term and short-term savings goals.
With an emphasis on ethical, equitable banking, Beneficial State Bank is a green bank that does not support or lend fossil fuel companies. The bank shows where every percentage of your deposit goes and says that 75% of its lending occurs within its mission categories. The other 25% supports other categories, but never to projects or organizations that cause harm to the planet or the people on it.
Some of the bank’s top lending categories for businesses and consumers include environmental sustainability, affordable housing, auto loans with fair interest rates, and health and well-being. The bank is also a preferred lender for clean vehicle programs in the state of California.
5. City First Bank, A Subsidiary of Broadway Federal Bank: Best for Commercial and Nonprofit Banking
City First Bank is part of a family of companies devoted to socially responsible lending and personal and business banking in low to moderate income communities. City First Bank, based in Washington, D.C., is a black-led, minority depository institute (MDI), as well as a B Corp and a member of Global Alliance for Banking on Values.
City First Bank offers a variety of personal and business banking products, as well as accounts for nonprofit organizations. The personal checking account has no monthly fee if you meet any of four criteria:
One monthly direct deposit
10 debit card transactions
eStatement enrollment
Minimum monthly balance of $100
The bank also offers a personal savings account, CDs, money market accounts and savings accounts for minors.
6. Sunrise Banks: Best for Mortgages
Sunrise Banks offers a full range of personal banking products, including personal checking, savings accounts, credit cards, and a pre-paid Mastercard. But it is best known for its Pathway2Home affordable mortgage product, as well as other mortgages with down payments as low as 3%. The bank also writes VA loans with no down payment required.
By supporting affordable housing and helping Minnesota residents get into homes of their own and begin building generational wealth, Sunrise Banks shows its commitment to socially responsible banking. Like many of the socially responsible banks on this list, Sunrise Banks is a member of GBAV, a Community Development Financial Institution, and a B corporation.
7. Clean Energy Credit Union: Best for Clean Energy Loans
Most of the banks on our list support efforts to reduce climate change, do not help fund or support fossil fuel companies, and run their organization sustainably. Clean Energy Credit Union works to fund renewable energy through personal loans for electric bicycles, solar electric systems, geothermal heat pump systems, and green home improvements. Clean Energy Credit Union also offers auto loans for electric vehicles.
While the credit union specializes in funding renewable energy and other loans, it also offers options for personal checking and savings accounts. Checking accounts offer dividends from .01% APY to 3.56% APY with a minimum opening balance of just $25 and no monthly fees if you meet certain requirements, including having a Clean Energy loan.
Savings accounts include a bank account with a 0.15% APY and a minimum opening deposit of $100, certificates, and a money market account with dividends ranging from 0.95% up to 1.61% APY, with a minimum deposit of $2,500.
As part of its commitment to green living, the credit union offers bio-based, compostable debit cards that are eco-friendly. It is also one of the few banks or credit unions on our list that offers a Carbon Zero Teen Account online, which shows your teen the carbon offsets their deposits can fund.
8. National Cooperative Bank
National Cooperative Bank offers high yield CDs, and money market accounts, as well as checking and savings accounts and business products. The bank offers an interest earning checking account with a 0.90% APY and no minimum opening deposit. There is a $15 monthly fee if the balance falls below $500.
The money market account has a high 2.28% APY, with a minimum balance of $5,000 to avoid the $25 monthly fee. You will need just $100 to open the account. You can earn a 4.34% APY on with a 12-month CD with a $2,500 minimum opening deposit.
While the bank is committed to helping its customers earn money through high interest rates, it is equally committed to its duties as a socially responsible bank. The bank has donated $8 billion to support underserved communities nationwide, and provided loans and investments of $475 million to low and moderate income families, including mortgage loans.
9. Clearwater Credit Union: Best for Previously Unbanked Consumers
Clearwater Credit Union is a certified Community Development Financial Institution and a member GBAV. While most credit unions are devoted to serving their local communities, Clearwater takes it a step further by donating $1.6 million to 290 non-profit organizations in 2022. Employees donated more than 1,340 volunteer hours within their local communities, and the credit union awarded $20,000 in scholarships to students in the credit union’s home state of Montana.
Clearwater CU offers multiple choices in bank accounts, including a basic checking with no monthly fee, a premium checking that pays dividends, and a SmartSpend checking account with a low, $5 monthly fee for previously unbanked consumers.
The SmartSpend account can help lower income individuals and families avoid the fees that come with check cashing services or prepaid debit cards. It also gives them the opportunity to avoid overdraft fees while gaining the convenience of a deposit account, debit card, and access to mobile banking.
10. Carver Federal Savings Bank: Best for Small Business Banking
Many of the banks on our list devote time and money to sustainability, equality, and other social causes. But they don’t necessarily offer the highest interest rates available in online banking today. Carver Federal Savings Bank, however, is a Black-operated, socially responsible bank that also delivers high-yield savings of 4.00% APY.
But there is a catch. You’ll need a $5,000 minimum opening deposit. This might make the Carver savings account inaccessible to many in underserved communities seeking personal checking and savings accounts. However, for those on firm financial footing who want to support a socially responsible bank, Carver’s high yield savings is a solid choice.
Beyond the high yield savings, Carver is known for an array of checking and savings products for small business owners, including a money market account with 2.00% APY and a business interest checking account.
Start-up businesses or those with low-to-moderate balances might prefer the Carver Community Business Free Checking with no minimum balance, no monthly fee, and 200 free transactions per month. The bank focuses on Black- and Minority-owned businesses as well as women-owned businesses across New York City.
Carver is a designated CDFI and has reinvested 80% of every dollar deposited into NYC communities. It also donated $149 million in New Market Tax credit and more than $259 million in leveraged loans across the New York metro area.
How to Choose Socially Responsible or Sustainable Banks and Credit Unions
When you’re shopping around for a socially responsible bank, first consider what aspects of ethical banking are most important to you. Are you looking for a bank committed to serving low income communities, or one that puts a focus on renewable energy? Maybe sustainability is the most significant aspect to finding a socially responsible bank that aligns with your values.
Of course, you also want to think about all the other elements that you would consider for your personal banking needs. These include low fees, online banking capabilities and an intuitive mobile app, early availability of your direct deposits, and a high yield savings account.
Our list of the best socially responsible banks takes all these factors into consideration and showcases banks that back up their values with investments – in their communities and in the environment.
Organizations That Support Sustainability and Social Responsibility
The best socially responsible banks often showcase their commitment to ethical banking through certifications or membership in organizations that support and reflect their values. If a bank is a member of the Global Alliance for Banking on Values, recognized as a community development financial institution (CDFI) or a Certified B corp, you know the bank has demonstrated its commitment to ethical banking.
Global Alliance for Banking on Values (GABV)
The Global Alliance for Banking on Values (GABV) is a worldwide network of socially responsible banks committed to ESG values. GABV banks focus on three pillars:
Finance change
Do no harm
Sustainable products and services
To join the Global Alliance for Banking on Values (GABV), banks must show their commitment to sustainability, and have a balance sheet of at least $50 million. They must be a full service bank and show financial stability and stable governance. Many of the best socially responsible banks are members of the Global Alliance for Banking on Values (GABV).
Community Development Financial Institutions (CDFIs)
A Community Development Financial Institution is a bank, cash management account, or credit union that is certified by the U.S. government. It’s a bank that has shown a commitment to providing banking services in low income communities and underserved communities across the U.S.
Unlike many other financial institutions, Community Development Financial Institutions focus on areas such as economic development, affordable housing and supporting small businesses in their local community.
Certified B Corp
A Certified B Corp is any organization or socially responsible financial institution that successfully balances purpose and profit. Organizations can apply for B Corp certification if they demonstrate transparency, social responsibility, and show high social and environmental sustainability standards. Banks and credit unions must pass rigorous certification standards to become recognized as a B Corp.
FAQs
Still have questions about the best socially responsible banks? Check out some commonly asked questions below.
Which banks are eco-friendly?
Many U.S. banks meet eco-friendly requirements in a variety of ways. Some, like Clean Energy Credit Union, refuse to support fossil fuel companies. Aspiration plants a tree whenever customers round up their debit card purchases to deposit into a savings account.
To find eco-friendly banks, you can look up their ESG (Environmental, Social & Governance) ratings on their websites, in their financial statements, or on a website like Sustainalytics.
Remember, ESG ratings are derived from many factors, including a company’s diversity & inclusion practices, sustainability, charitable donations, and more. You may have to dig deeper to see which banks employ sustainable practices to reduce their carbon footprint.
How Can You Determine Which Banks Are Committed to Ethical Banking?
A search on a company website should help you find the best socially responsible banks committed to ethical banking. Check online to see if the bank helps underserved communities or the unbanked or underbanked population. Ethical banks may be recognized as a community development financial institution.
What is responsible banking?
Responsible banking or ethical banking typically focuses on three key areas:
Banking access and community development
Environmental impact and climate change
Holistic social responsibility
What is an ESG bank?
An ESG bank focuses on environmental sustainability, social responsibility and ethical governance.
Alaska Airlines is growing its international presence, adding a new country to its route map as part of a broader three-route expansion.
The airline’s newest destination: Guatemala.
Daily year-round service from Alaska’s hub in Los Angeles will launch Dec. 14.
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Alaska also will add two new seasonal routes to Zihuatanejo along Mexico’s Pacific coast. Beginning Dec. 23, the carrier will offer one weekly flight from both San Diego and Chicago through April 6.
The latest additions come as Alaska has been building its international profile.
Guatemala will become Alaska’s sixth country served outside the U.S. The carrier also flies to destinations in Belize, Canada, Costa Rica, Mexico and, announced just last month, the Bahamas.
Related: Turf war: United puts biggest jet on new San Diego flight after Alaska unveils new route
Alaska touted its growing international ambitions in its latest expansion.
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“As the fifth largest carrier in the U.S., we’re a growing airline that’s expanding to more international destinations,” Kirsten Amrine, Alaska’s network planning chief, said in a statement. “Our new service will allow families, friends and businesses to better connect between the West Coast and Central America.”
Aside from the addition of a new country, Alaska’s decision to fly nonstop between Zihuatanejo and Chicago is an interesting one. Alaska already flies to Zihuatanejo from its hubs in San Francisco and Los Angeles. San Diego is a focus city for the carrier.
Bargain mode: How to save hundreds on flights with the Alaska Airlines Companion Fare
Unlike those other cities, Chicago is neither a hub nor a focus city for Alaska. That means its Zihuatanejo route — Alaska’s first and only international route from the Windy City — will have to succeed without getting a boost from connecting passengers.
Also unlike Alaska’s California bases, Alaska’s presence in Chicago is small, meaning the airline might not be top of mind for customers looking for flights to the city along Mexico’s central Pacific coast.
Still, Alaska will get some help on its Chicago-Zihuatanejo service. The airline notes it’s being offered “in partnership with ALG Vacations,” a travel company that will fill seats on Alaska’s service as it sells vacation packages between Chicago and the Mexican beach destination.
“Our new Saturday nonstops to Zihuatanejo from San Diego and Chicago add to our current Los Angeles and San Francisco service and provide guests with more choices as they plan their winter getaways,” Amrine added in Alaska’s statement.