Connect with us

Finance

The 6 Best High-Interest Checking Accounts for Letting Your Money Grow

Published

on


Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners.

You’ve probably always thought that if you want to earn interest on your money, you move it to a savings account. Your checking account is just for paying bills and the like, right? Not anymore. 

With the rise of online-only banks that don’t have the overhead of brick-and-mortar locations, the competition for your checking dollars has gotten fierce. One of the big benefits of this battle is that many banks are now offering interest-yielding checking accounts. And while you may not rake in giant interest rates, you can definitely earn a little something on that money — and why wouldn’t you?

Here are our top six high-interest checking accounts that could help your money grow.

How We Picked the 6 Best Checking Accounts That Pay Interest

Our methodology for this list is pretty simple: According to the FDIC, the average interest rate for interest-bearing checking accounts is currently 0.05%. We’re looking for checking accounts that beat that average.

Beyond the interest rate, we looked at what else the account brings to the table. We gave preference to those accounts that don’t have maintenance fees or high minimum balances and that offer ATM fee reimbursement. 

The 6 Best High-Interest Checking Accounts

Without further adieu, here are the six best high-interest checking accounts where you can use your money and make a little money at the same time.

1. SoFi 

One of the highest interest rates we’ve found for an online checking account is from SoFi Money. That checking account earns you 1.6% APY, or annual percentage yield, which is percent in interest (including compound interest) you’ll earn on your money in a year.

Frankly, that’s practically unheard of. That’s more than 32 times higher than the average interest-bearing checking account. Heck, it’s better than the rate on a lot of savings accounts.

SoFi Money takes a number of steps to make the transition to online banking easy:

  • ATMs: With automatic reimbursement of ATM fees, you can use just about any ATM anywhere for free.
  • Checks: If you occasionally need a physical check — to pay your landlord or whatever — you can get checks from SoFi for free.
  • Website: SoFi’s website and mobile apps have detailed FAQs, and they make it simple and easy for you to find any information you want.

2. NDKC Personal Checking

The NBKC Personal Checking Account offers 1.01% interest on all balances and has no minimum balance requirement. That’s a pretty sweet deal at 20 times the national average. It also features $0 overdraft and non-sufficient funds charges, so if you tend to overextend your money, you won’t get dinged. 

Do you use ATMs? NBKC Personal Checking also offers up to $12 monthly to refund those pesky ATM fees.

This account has a minimum opening deposit of $5, but you’d probably deposit at least that much anyway. 

3. Memory Bank

You may not have heard of Memory Bank. Or maybe you did and you just forgot. (Get it?) Anyhoo, Memory Bank’s EarnMore Checking Account is another great option for a high-interest checking account with 0.90% APY. 

Memory Bank is a great choice for those of us who like the perks of online banking, but also want to know that we can get personal service when we need it. They offer live support by phone, email, or online chat. That can be a great benefit when you just need to ask a quick question, but don’t want to get stuck on an automated phone system for an hour. 

4. Capital One 360

The real beauty of the Capital One 360 Checking Account is the pure ease of its online banking setup. Both the website and the app are remarkably intuitive. Plus, you won’t have any minimum balance or fees to deal with. 

The base APY right now for the Capital One 360 is 0.2%, which is a respectable four times the national average. However, if you manage to save up a little, you’ll earn even more. Balances from $50,000 to $100,000 earn 0.5%. Balances above $100,000 earn 0.75%. 

5. Charles Schwab

OK, when you think Charles Schwab, you probably don’t think about checking accounts. That could change. Its High Yield Investor Checking is a free account that earns 0.15% APY on your balance. 

It also features unlimited ATM fee rebates worldwide. That’s pretty cool if you travel a lot. 

This account has no minimum balance, no minimum opening deposit and no maintenance fees. 

There is one catch: You need to have a Schwab One brokerage account linked to your checking to avoid maintenance fees. It may not be for everybody, but if you already invest, why not take advantage of it? 

6. Ally Interest Checking Account

As the name suggests, you’ll earn interest with the Ally Interest Checking Account. For balances under $15,000, you’ll earn 0.1%, which isn’t all that remarkable. 

But, if you tend to have $15,000 or more on hand, you can earn 0.5%. While 0.5% may not seem like much, that’s 10 times the national average for checking accounts that pay interest. 

Ally’s Interest Checking really makes its mark with the other perks. The account has:

  • No maintenance fees.
  • No minimum balance requirement.
  • No minimum opening deposit.
  • Easy online access.

Another nice perk is that Ally will reimburse you for up to $10 worth of ATM fees charged by other banks per statement cycle. 

How to Choose a High-Interest Checking Account

If you’re thinking about moving to a high-interest checking account, take a few things into consideration.

  • Look for accounts that won’t negate those interest earnings by charging you fees. However, if you will carry a high balance, it may be worth paying a small fee to get a better interest rate. Do the math.
  • Keep an eye on minimum balance requirements. We focused on accounts that don’t require a minimum balance, but if you know that you’ll consistently have at least $1,000 in your account at all times, you may want to shop around a bit more. There may be a great deal out there.
  • Look at the requirements. Maybe you don’t use your debit card that much or you don’t want to have direct deposit. Choose an account that fits with the way you like to use your account.
  • Keep ATMs in mind if you use them. It’s 2019, and you shouldn’t have to pay those fees. There are too many banks that are willing to cover those for you.
  • The app. If you do a lot of banking on your phone, make sure the bank you choose has a solid banking app.

Once you find the checking account that checks all the right boxes for you and how you like to use your account, sign up and start earning money on your money already. 

Tyler Omoth is a freelance writer covering topics from personal finance to career advice and even lawn care. His work has been featured on TopResume.com, Writersweekly.com and more. He is also the author of over 70 educational books for children and a proud parent of twin toddlers.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.



Source link

قالب وردپرس

Finance

MEFA Student Loans Review: Non-Profit Lender With Low Rates And Fees

Published

on


MEFA Student LoansMEFA Student Loans

When you need a private student loan for school, finding a student loan provider who can meet your needs and has reasonable loan terms is critical.

Private student loan providers are not all created equal. So researching providers is a must when it comes to finding a good deal. Looking for lenders that are non-profit organizations can be a good starting point as they may be willing to offer more attractive rates and/or terms.

MEFA is one such non-profit provider. For undergraduate and graduate students who are United States citizens and attend an eligible college, MEFA student loans could be a strong option. We’ll explain the loan features and when a private student loan from MEFA could make sense.

See how MEFA compares to other private lenders in minutes on Credible!


MEFA logoMEFA logoMEFA logo

Quick Summary

  • Undergraduate and graduate student loans
  • Reasonable rates and terms
  • No formal forbearance policy

MEFA Student Loans Details

Product Name

MEFA Student Loans

Min Loan Amount

$1,500

Max Loan Amount

Cost of Attendance

APR

3.75%-5.75%

Rate Type

Fixed

Loan Terms

10 or 15 Years

Promotions

None

Who Is MEFA?

MEFA is the Massachusetts Educational Financing Authority. They are a non-profit organization based in Boston, MA. MEFA provides student loans for undergraduate and graduate students alike. MEFA was created in 1982 by the Massachusetts state legislature at the request of colleges and universities across the state.

What Do They Offer?

MEFA offers private student loans to undergraduate and graduate students. They also provide student loan refinancing. While MEFA is a Massachusetts-based organization, they lend to families in all 50 states.

A MEFA loan only covers one school year. Students must apply each year that they will be in school. For example, if you want a loan to cover four years of school, you’ll need to apply four times for four loans.

Students can borrow up to the cost of attendance minus any financial aid. Minimum loan amounts are $2,000 for private schools and $1,500 for public schools. Cosigners are generally required for undergraduate loans.

Qualifications

Students must be enrolled at least half time in an accredited degree-granting undergraduate or graduate program and maintain satisfactory academic progress as outlined by the school. The school must be a non-profit but can be public or private. Loan applications are subject to MEFA credit approval standards.

To find out your actual loan rates, you’ll have to go through the full application process, which does require a hard credit check. If you are using a cosigner, they will also require a credit check and the final loan amount can depend on the cosigner’s finances. Upon approval, any loan rate that you might receive will fall within the ranges stated below for undergraduate and graduate loans.

Undergraduate Loans

There are several types of student loans for undergraduates to choose from. Fixed rates vary from 3.75% to 5.75% APR. Note: rates subject to change.

  • Immediate Repayment (10-year term): Payments begin immediately (28th day of the month following the final disbursement). 3.75% – 5.30% APR
  • Immediate Repayment (15-year term): Payments begin the same as above. 3.95% – 5.35% APR.
  • Interest-Only Repayment (15-year term): Interest-only payments begin immediately. Payments that include principal begin after the undergraduate anticipated in-school period. 4.25% – 5.40% APR.
  • Deferred Repayment (15-year term): Payments are deferred until six months after the student graduates or no longer meet academic qualifications. Deferments are available for a maximum of 60 months. 4.38% – 5.50% APR. 
  • Student Deferred Repayment with Co-Borrower Release (15-year term): Same terms as “Deferred Repayment.” However, the co-borrower can be released after 48 consecutive on-time payments. 4.62% – 5.75% APR.

Graduate Loans

There are two types of graduate student loans available from MEFA. Both have fixed rates. The same loan minimum and maximum amounts apply for graduate as undergraduate loans.

  • Interest-Only Repayment (15-year term): Payments begin the 28th day following the final loan disbursement. The principal will be added to loan payments once the in-school period ends. 4.25% – 5.40% APR.
  • Deferred Repayment (15-year term): Payments are deferred until six months after the student graduates or no longer meet academic qualifications. Unlike undergraduate loans, deferments on graduate loans max out at 36 months. 4.45% – 5.50% APR.

Are There Any Fees?

MEFA student loans (for both undergrads and graduates) come with no application or origination fees. They also don’t charge fees for late payments or returned checks. Finally, there are no prepayment penalties on MEFA student loans.

How Do I Open An Account?

To apply for a MEFA loan, visit https://www.mefa.org. Keep in mind that MEFA doesn’t offer pre-qualified rate quotes. If you submit a loan application, a hard credit inquiry will be placed on your credit report.

Is My Money Safe?

Since MEFA doesn’t take deposits, there isn’t any money to lose. If you’re approved for a MEFA student loan, the funds will be disbursed directly to your college or university.

Is It Worth It?

For students who need to take out private student loans to help pay for school, MEFA student loans could be worth it. They have competitive rates and terms and do offer some in-school deferment options.

However, one major downside to MEFA is that they don’t have any formal hardship forbearance policy. And since they use traditional loan underwriting methods, it’s likely that you’ll need a cosigner to get approved for a MEFA undergraduate student loan (and only one of their loans offers cosigner release).

Before you apply for any MEFA student loans, be sure to compare them with other private lenders on Credible. And if you’re looking to take out a private student loan without a cosigner, check out our guide.

MEFA Student Loans Features

Min Loan Amount

  • Public school: $1,500
  • Private school: $2,000

Max Loan Amount

Cost of attendance

APR

3.75%-5.75%

Auto-Pay Discount

None

Rate Type

Fixed

Loan Terms

10 or 15 years

Origination Fees

None

Prepayment Penalty?

No

In-School Payments

  • Immediate payments
  • Interest-only payments
  • Full deferment

Co-signers Allowed?

Yes, but only on one undergraduate plan

Grace Period

6 Months

Eligible Schools

Accredited non-profit degree-granting undergraduate or graduate program (public or private)

Servicer

American Education Services

Customer Service Phone Number

1-800-266-0243

Customer Service Hours

Monday-Friday, 8 am – 8pm

Customer Service Email

mefaloans@mefa.org

Address For Sending Payments

American Education Services
P.O. Box 65093
Baltimore, MD 21264-5093

Promotions

None

The post MEFA Student Loans Review: Non-Profit Lender With Low Rates And Fees appeared first on The College Investor.



Source link

قالب وردپرس

Continue Reading

Finance

Introducing Coverage Critic: Time to Kill the $80 Mobile Phone Bill Forever

Published

on



A Quick Foreword: Although the world is still in Pandemic mode, we are shifting gears back to personal finance mode here at MMM. Partly because we could all use a distraction right now, and even more important because forced time off like this is the ideal time to re-invest in optimizing parts of your life such as your fitness, food and finances.

Canadian Readers – we have also collected some recommendations for you at a new Canadian Mobile Phone recommendations page.

Every now and then, I learn to my horror that some people are still paying preposterous amounts for mobile phone service, so I write another article about it.

If we are lucky, a solid number of people make the switch and enjoy increased prosperity, but everyone who didn’t happen to read that article goes on paying and paying, and I see it in the case studies that people email me when looking for advice. Lines like this in their budget:

  • mobile phone service (2 people): $160

“NO!!!!”
is all I can say, when I see such unnecessary expenditure. These days, a great nationwide phone service plan costs between and $10-40 per month, depending on how many frills you need.

Why is this a big deal? Just because of this simple fact:

  • Cutting $100 per month from your budget becomes a $17,000 boost to your wealth every ten years.

And today’s $10-40 phone plans are just great. Anything more than that is just a plain old ripoff, end of story. Just as any phone more expensive than $200* (yes, that includes all new iPhones), is probably a waste of money too.

So today, we are going to take the next step: assigning a permanent inner-circle Mustachian expert to monitor the ever-improving cell phone market, and dispense the latest advice as appropriate. And I happen to know just the guy:

Christian Smith, along with colleagues at GiveWell in San Francisco, circa 2016

My first contact with Chris was in 2016 when he was working with GiveWell, a super-efficient charitable organization that often tops the list for people looking to maximize the impact of their giving.

But much to my surprise, he showed up in my own HQ coworking space in 2018, and I noticed he was a bit of a mobile phone research addict. He had started an intriguing website called Coverage Critic, and started methodically reviewing every phone plan (and even many handsets) he could get his hands on, and I liked the thorough and open way in which he did it.

This was ideal for me, because frankly I don’t have time to keep pace with ongoing changes in the marketplace. I may be an expert on construction and energy consumption, but I defer to my friend Ben when I have questions about fixing cars, Brandon when I need advice on credit cards, HQ member Dr. D for insider perspectives on the life of a doctor and the medical industry, and now Chris can take on the mobile phone world.

So we decided to team up: Chris will maintain his own list of the best cheap mobile phone plans on a new Coverage Critic page here on MMM. He gets the benefit of more people enjoying his work, and I get the benefit of more useful information on my site. And if it goes well, it will generate savings for you and eventual referral income for us (more on that at the bottom of this article).

So to complete this introduction, I will hand the keyboard over to the man himself.

Meet The Coverage Critic

Chris, engaged in some recent Coverage Criticicism at MMM-HQ

I started my professional life working on cost-effectiveness models for the charity evaluator GiveWell. (The organization is awesome; see MMM’s earlier post.) When I was ready for a career change, I figured I’d like to combine my analytical nature with my knack for cutting through bullshit. That quickly led me to the cell phone industry.

So about a year ago, I created a site called Coverage Critic in the hopes of meeting a need that was being overlooked: detailed mobile phone service reviews, without the common problem of bias due to undisclosed financial arrangements between the phone company and the reviewer.

What’s the Problem with the Cell Phone Industry?

Somehow, every mobile phone network in the U.S. claims to offer the best service. And each network can back up its claims by referencing third-party evaluations. 

How is that possible? Bad financial incentives.

Each network wants to claim it is great. Network operators are willing to pay to license reviewers’ “awards”. Consequently, money-hungry reviewers give awards to undeserving, mediocre networks.

On top of this, many phone companies have whipped up combinations of confusing plans, convoluted prices, and misleading claims. Just a few examples:

  • Coverage maps continue to be wildly inaccurate.
  • Many carriers offer “unlimited” plans that have limits.
  • All of the major U.S. network operators are overhyping next-generation, 5G technologies. AT&T has even started tricking its subscribers by renaming some of its 4G service “5GE.”

However, with enough research and shoveling, I believe it becomes clear which phone companies and plans offer the best bang for the buck.  So going forward, MMM and I will be collaborating to share recommended phone plans right here on his website, and adding an automated plan finder tool soon afterwards. I think you’ll find that there are a lot of great, budget-friendly options on the market.

A Few Quick Examples:

Mint Mobile: unlimited minutes, unlimited texts, and 8GB of data for as low as $20 per month (runs over T-Mobile’s network).

T-Mobile Connect: unlimited minutes and texts with 2GB of data for $15 per month.

Xfinity Mobile: 5 lines with unlimited minutes, unlimited texts, and 10GB of shared data over Verizon’s network for about $12 per line each month (heads up: only Xfinity Internet customers are eligible, and the bring-your-own-device program is somewhat restrictive).

Cricket Wireless: 4 lines in a combined family plan with unlimited calling, unlimited texting, and unlimited data for as low as $100 per month (runs on AT&T’s network).

Ting: Limited use family plans for under $15 per line each month.

[MMM note – even as a frequent traveler, serious techie and a “professional blogger”, I rarely use more than 1GB each month on my own Google Fi plan ($20 base cost plus data, then $15 for each additional family member). So some of these are indeed generous plans]

Okay, What About Phones?

With the above carriers, you may be able to bring your existing phone. But if you need a new one, there are some damn good, low-cost options these days. The Moto G7 Play is only $130 and offers outstanding performance despite the low price point. I use it as my personal phone and love it.

If you really want something fancy, consider the Google Pixel 3a or the recently released, second-generation iPhone SE. Both of these are amazing phones and about half as expensive as an iPhone 11.

——————————————-

Mobile Phone Service 101

If you’re looking to save on cell phone service, it’s helpful to have a basic understanding of the industry. For the sake of brevity, I’m going to skip over a lot of nuances in the rest of this post. If you’re a nerd like me and want more technical details, check out my longer, drier article that goes into more depth.

The Wireless Market

There are only four nationwide networks in the U.S. (soon to be three thanks to a merger between T-Mobile and Sprint). They vary in the extent of their coverage:

  • Verizon (most coverage)
  • AT&T (2nd best coverage)
  • T-Mobile (3rd best coverage)
  • Sprint (worst coverage)

Not everyone needs the most coverage. All four nationwide networks typically offer solid coverage in densely populated areas. Coverage should be a bigger concern for people who regularly find themselves deep in the mountains or cornfields.

While there are only four nationwide networks, there are dozens of carriers offering cell phone service to consumers – offering vastly different pricing and customer service experiences.

Expensive services running over a given network will tend to offer better customer service, more roaming coverage, and better priority during periods of congestion than low-cost carriers using the same network. That said, many people won’t even notice a difference between low-cost and high-cost carriers using the same network.

For most people, the easiest way to figure out whether a low-cost carrier will provide a good experience is to just try one. You can typically sign up for these services without a long-term commitment. If you have a good initial experience with a budget-friendly carrier, you can stick with it and save substantially month after month.

With a good carrier, a budget-friendly phone, and a bit of effort to limit data use, most people can have a great cellular experience while saving a bunch of money.

MMM’s Conclusion

From now on, you can check in on the Coverage Critic’s recommendations at mrmoneymustache.com/coveragecritic, and he will also be issuing occasional clever or wry commentary on Twitter at @Coverage_Critic.

Thanks for joining the team, Chris!

*okay, special exception if you use it for work in video or photography. I paid $299 a year ago for my stupendously fancy Google Pixel 3a phone.. but only because I run this blog and the extra spending is justified by the better camera.

The Full Disclosure: whenever possible, we have signed this blog up for referral programs with any recommended companies that offer them, so we may receive a commission if you sign up for a plan using our research. We aim to avoid letting income (or lack thereof) affect our recommendations, but we still want to be upfront about everything so you can judge for yourself. Specific details about these referral programs is shared on the CC transparency page. MMM explains more about how he handles affiliate arrangements here.



Source link

قالب وردپرس

Continue Reading

Finance

Three tips to managing your money post-COVID world

Published

on



This article was created by StackCommerce. While Postmedia may collect a commission on sales through the links on this page, we are not being paid by the brands mentioned.

Managing your finances has always been a crucial aspect of your personal life, but with a global pandemic underway, uncertainty is surrounding more than just your savings account. Checking out and not keeping a close eye on your financial well-being is not an option. Instead, taking stock of how you manage your money may bring you greater peace of mind in this troubling time.

Uncertainty surrounds everything from your paycheck to federal interest rates but focusing on these three goals for managing your money may help you find some additional security in a post-COVID world.

Find a high savings rate

Saving money becomes even harder during a crisis, but one of the smartest things you can do now is open a high-yield savings account. Explore different online banks and see what they can offer as far as the annual percentage yield.

The national average rate is 0.06 per cent but a few online savings accounts are even offering more than 1.0 per cent annual percentage yield. That kind of rate will actually

boost your savings

or your emergency fund over time, giving you a better cushion in future times of uncertainty.

Create an emergency budget

While you watch your high-yield savings account grow, take the opportunity to set up your emergency budget. The best way to avoid a financial emergency is to make sure you have a cushion to get you through hard times. Whether it’s an unemployment cheque, a paycheque, or even worker’s compensation or paid sick leave, a good rule of thumb is to stash away a small percentage of it for a rainy day.

And it doesn’t get any rain more than during a global pandemic.

Paying close attention to your budget and using a personal finance tracker like

iFinancer Income & Expense Tracker

is a great way to make sure you know where your money is going. It’ll help you avoid dipping into your savings account unless you need to, and allow your emergency budget to carry you through to more stable times.

Maintain your credit

While many banks and lenders have temporarily adjusted their lending policies in response to COVID-19, these changes can impact your credit and even end up hurting you in the long run. Keep an eye on any habits that affect your credit like payment history, new credit accounts, and amounts owed.

Are you using your credit card more or thinking about applying for a personal loan to get you through some financial hardships? Try to reduce your spending in order to put less on your credit card and pay attention to loan modifications during these uncertain times.

Tracking your expenses to avoid overspending is easy with

iFinancer

. With this tool, you can get notifications to alert you of possibly overspending and it includes various tools to help you save more money, thus maintaining a healthy credit score.

COVID-19 has caused a lot of stress on society in the past few months. Your financial wellness in the future doesn’t have to be part of it.

iFinancer Income & Expense Tracker can help you plan for a more viable financial future. Normally $30, you can get it for

36 per cent off at just $19 USD now

.



Source link

قالب وردپرس

Continue Reading

Trending