Wells Fargo was supposed to be a major beneficiary of higher interest rates, but depositors seeking more bang for their buck and soft loan demand from business customers combined to to pinch profits in the second quarter.
The bank’s stock price fell 6% in mid-afternoon trading Friday, as investors absorbed the disappointing news about how much interest income the megabank is raking in.
High borrowing costs helped lead to “tepid” loan demand from businesses, said CEO Charlie Scharf, putting a lid on how much interest the bank can collect. All the while, the $1.9 trillion-asset company had to shell out more in interest to keep depositors happy, since they can find higher interest rates elsewhere.
The two factors caused Wells Fargo’s net interest income — the difference between its interest revenues and its interest expenses — to fall to just under $12 billion for the first time since the Federal Reserve started raising rates in 2022.
“They’re still having to pay more to their deposit customers,” said Kyle Sanders, senior equity research analyst at Edward Jones. “Until the Fed cuts, that’s going to continue to happen.”
Investors’ negative reaction on Friday grew out of their expectation that Wells Fargo might upgrade its net interest income guidance for the year, Sanders said. The bank’s balance sheet came into the rate hike cycle better positioned for higher rates than some other banks. Its consumer-heavy deposit base fueled hopes that less-savvy customers wouldn’t notice rates were rising.
But like others in the industry, Sanders said Wells has “consistently underestimated” the size of increases in its deposit costs. While rising interest expenses have been a bigger pain for regional banks, megabanks such as Wells and JPMorgan Chase have also felt the pinch in recent months.
While Wells stuck to its forecast that net interest income will drop by 7% to 9% this year, the bank also said that it anticipates the metric will land at the higher end of that range.
Even so, Sanders said the stock-price decline on Friday seems “a little bit overdone.” He and other analysts pointed to strong growth in the company’s revamped credit card business and its fee-driving investment banking business — two areas that CEO Charlie Scharf has built up during his nearly five-year tenure.
Piper Sandler analyst Scott Siefers wrote in a note to clients that the initial pressure on the bank’s stock price Friday may fade “as better fees may overwhelm the higher cost guide.”
Overall, the company’s profits rose to $4.9 billion between April and June, up from $4.6 billion in the first quarter. Higher fee revenues and Scharf’s campaign to trim noninterest expenses — the bank’s employee headcount is down 11,000 compared to last year — helped reduce the drag from lower interest income.
The higher interest expenses were partly due to depositors’ “continued migration into higher-yielding alternatives,” Mike Santomassimo, Wells Fargo’s chief financial officer, told reporters Friday. Rather than keeping their cash in low-paying checking accounts, consumers have shifted toward higher-yielding savings accounts or certificates of deposit.
However, the pace of that migration “has slowed and continues to slow,” Santomassimo said. Interest expenses climbed 3.3% during the quarter, compared with a 5.4% increase in the first quarter and a 12% jump in the fourth quarter of 2023.
One driver of the most recent increase: Wells Fargo bumped up the interest it pays on deposits in customers’ wealth and investment management accounts, a change that will cost the bank $350 million this year.
There was one silver lining to the higher rates the San Francisco-based bank paid on deposits. Wells grew deposits “in every line of business for the first time in a long time,” Santomassimo said. The pricing for corporate deposits is competitive and thus adds to interest expense pressures, he noted.
But the deposits are “going to be very valuable over a long period of time, particularly as rates start to come back down,” Santomassimo said.
Living on a budget isn’t hard. It’s about spending less than you make and ensuring your bills are paid. The biggest benefit is the security of knowing your bills are covered, savings are growing, and you can still give and spend wisely. Here are 9 brilliant tips to make living on a budget easy and stress-free.
Find Gratitude
Be thankful for every cent you earn. Appreciate your paycheck, no matter the amount. Gratitude helps you manage your budget better and value your income.
Be Positive
Changing your mindset from negative to positive can make a big difference. Focus on finding the good in everything. It helps with living on a budget.
To learn more: 125+ Money Affirmations to Attract More Money into Your Life
Just Start Somewhere
Starting a budget can be tough, but practice makes progress. Keep refining your method until it works for you. The key is to start somewhere.
To learn more: How To Create A Biweekly Budget
Live a Modest Lifestyle
Avoid comparing yourself to others. Live a life you can afford with your current income. Spend less, save more, and live within your means.
Avoid Lifestyle Creep
Lifestyle creep can sneak up on you. Learn to spot and avoid it to keep your spending in check and stay on track financially.
To learn more: Avoid the Trap of Lifestyle Creep and Reach Financial Freedom
Live within Your Means
Living below your means is crucial for financial freedom. Spend less than you earn and find joy in simple living.
To learn more: How to Live Below Your Means and Love Life
Know Your Season of Life
Your financial situation changes with different life stages. Adjust your budget to fit your current needs, whether you’re paying off debt or saving.
Be Okay with Your Budget
Accepting your budget is important. The sooner you embrace it, the faster you’ll reach financial freedom. Align your goals with your spending and saving.
To learn more: Budgeting Made Simple
Living on Budget with a Family
Budgeting with a family means prioritizing bills, savings, and retirement contributions first. Spend leftover money on kids’ activities and extras.
You can live on a budget
Don’t wait. Start budgeting now by figuring out your income, deciding on savings and giving goals, and living on the rest.
To learn more: How to Make Living on a Budget Painless
Know someone else that needs this, too? Then, please share!!
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More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
Are you looking for the best summer side hustles? There are plenty of ways to make extra money that can fit into your schedule and match your interests. Whether you prefer working outdoors or want to sell handmade crafts, there’s a summer side hustle for everyone. Picking the right one can help you enjoy the…
Are you looking for the best summer side hustles?
There are plenty of ways to make extra money that can fit into your schedule and match your interests.
Whether you prefer working outdoors or want to sell handmade crafts, there’s a summer side hustle for everyone. Picking the right one can help you enjoy the warm summer months and even develop new skills.
Summer side jobs are great because you can work when you want and make extra money while enjoying the summer. They can help you save more money, reach your money goals faster, and even let you try new things you’re interested in.
For me, I have always liked side hustling in the summer. The days are longer, so it feels like I have more time to work on projects!
Best Summer Side Hustles
Below are the best summer side hustles.
1. Blogging
Blogging is a great way to make extra money during the summer. It’s perfect if you enjoy writing and sharing your thoughts.
I actually started this blog as a summer side hustle. I was looking for a way to write in my free time, and it eventually turned into a way for me to make extra income. And, now it’s my full-time job!
You can make money from blogging in several ways. Affiliate marketing is popular. This means promoting products and earning a commission for any sales made through your links. Display ads are another way. These are ads that appear on your blog, and you earn money when visitors click on them.
Though it’s hard work in the beginning, blogging can become a source of semi-passive income. Once you have enough content and visitors, you might earn money even when you’re not actively working on your blog. This means you could enjoy your summer and still see your income grow.
I have free training that you can take – How To Start A Blog FREE Course. Want to see how I built a $5,000,000 blog? In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
2. Online surveys
Taking online surveys is one of the easiest summer side hustles online. Many companies want to know what their customers think about their products and are willing to pay for your opinions.
The survey companies I recommend signing up for include:
American Consumer Opinion
Survey Junkie
Prime Opinion
Swagbucks
Branded Surveys
Five Surveys
PrizeRebel
InboxDollars
I’ve done lots of surveys over the years, and what I like about them is that you can do them whenever you want – in the morning, at lunchtime, or before bed. You don’t need to follow a strict schedule, and they’re really simple to complete. This makes them great for a summer side hustle too!
3. Dog walking and pet sitting
Dog walking and pet sitting can be a great way to earn some extra money during the summer. If you love animals and enjoy being outside, this is perfect for you.
Rover is one of the most popular platforms for dog walkers and pet sitters. It’s user-friendly and has a lot of pet owners looking for help. You can set your own rates and schedule, which allows you to work whenever it fits your lifestyle.
Dog walkers typically earn between $15 and $30 an hour. How much you make depends on the number of pets and the length of time. The demand is usually high, especially during summer when pet owners go on vacation.
4. Freelance writing
Freelance writing is a flexible and rewarding summer side hustle. As a freelance writer, you can work for magazines, blogs, websites, and companies. You get to choose who you work with and what you write about, so this is a side hustle that you can easily just do in the summer if that’s the schedule that you are looking for.
One great thing about freelance writing is that you can do it from anywhere. You can work from home, a coffee shop, or even while traveling. All you need is a computer and an internet connection, and this is another reason that makes it easy to fit writing into your summer plans.
The pay for freelance writing can vary a lot. Some writers earn around $50 for a short article, while others can make $1,000 or more for longer pieces. As you gain experience and improve your skills, you can start charging higher rates.
I have been a freelance writer for around 10 years and I think it’s a great side hustle to get into.
5. Virtual assistant
A virtual assistant (VA) is someone who helps business owners with tasks through the internet. This job is great if you want a flexible schedule and the ability to work from home. You can choose who you work for and even set your own hours.
Virtual assistants handle different tasks like managing social media, organizing emails, scheduling appointments, and data entry. The best part is that you don’t need to be in the same location as your clients.
You can start as a virtual assistant on websites like Upwork or Fiverr. These platforms have many job listings for beginners. Rates for VAs usually start at $15 to $20 per hour but can go higher with experience.
Plus, many people look for extra VA help specifically in the summer so that they can focus on other things, such as going on vacation or spending more time with their kids who may be out of school for the season.
6. Tutoring
Tutoring is a great side hustle for summer. With kids out of school, many parents look for tutors to help keep their children learning. You can teach subjects like math, science, English, or even a musical instrument.
Tutoring can be done both in person and online. Online tutoring is very flexible and allows you to work from home. You can choose your hours and offer lessons at times that fit your schedule.
You can use websites like Tutor.com and Wyzant to find tutoring jobs.
7. Handmade crafts selling
Selling handmade crafts can be a fun and profitable summer side hustle.
Platforms like Etsy help you reach buyers from all over the world. Summer craft fairs and festivals are also great places to sell your handmade goods.
Some things you can sell include:
Selling handmade crafts allows you to be creative and make some extra money. Whether online or at local events, there’s always a market for unique, handmade items.
8. Photography
You can get paid to take pictures, even if you just have a smartphone. There are many ways to turn your love of photography into extra income.
One way to make money is by selling your photos on stock photo websites. These sites, like Shutterstock, iStock, and Adobe Stock, let you upload your images and earn money each time someone downloads them.
Another option is taking event photos. Weddings, BBQs, and family reunions are always in need of photographers, and there are typically many events like these during the summer months.
Recommended reading: 18 Ways To Get Paid To Take Pictures
9. Rideshare driving
Rideshare driving can be a great way to make extra money during the summer. Many people use services like Uber and Lyft to get around their town or when they are on vacation.
You get to choose when you work so this means you can fit driving around your schedule. If you have free time in the evenings or weekends, you can make the most of it.
You don’t need any special skills to start. As long as you have a car and a phone, you are almost ready to go. The application process is usually quick too.
Driving in busy areas or during peak times can also help you earn more. Events, weekends, and holidays can be especially busy, meaning more rides and more money for you.
10. House sitting
House sitting is a great way to make extra money over the summer. People tend to go on vacation in the summer and need someone to watch their homes.
You might need to water plants, collect mail, and keep an eye on the house. Sometimes, taking care of pets is also part of the job. Look for house sitting gigs in your local community (you can start by posting in a local Facebook group advertising your service) or try online platforms.
Websites like Rover and TrustedHousesitters can also help you find house sitting jobs. These sites connect homeowners with reliable sitters.
11. Pet grooming
Pet grooming is a great way to earn extra money during the summer. Many pet owners look for convenient and affordable ways to keep their pets looking neat, especially in the summer when it can be so hot.
Mobile pet grooming is especially popular. You can visit pet owners at their homes, and this saves them a trip to the groomer’s and makes your service more attractive.
You can offer services like haircuts, baths, nail trimming, and ear cleaning. Many people are willing to pay well for these services. They love their pets and want them to look their best.
12. Coach
Coaching can be a great way to make extra money during the summer. Do you have a skill or talent that others want to learn?
Summer camps and local community centers sometimes look for temporary coaches. This could be a fun way to spend your summer, and you can make a good amount of money while doing it.
Sometimes, private coaching can be even more profitable. People are willing to pay more for one-on-one lessons. For example, you might charge $30 to $50 per hour.
You can also offer online coaching. This is great if you want to work from home. Websites like Zoom make it easy to connect with students anywhere.
13. Babysitting
Babysitting is a great way to earn some extra cash over the summer. With school out, many parents need help watching their kids. Babysitting is flexible, allowing you to choose your own hours.
To get started, you can talk to families in your neighborhood. Let them know you’re available and you can also post on local Facebook groups or use websites like UrbanSitter.
I do recommend taking a babysitting course, such as one that teaches important skills like first aid and CPR. Knowing these skills can help you feel more confident and assure parents that their kids are in good hands.
14. Deliver groceries
Delivering groceries is one of the best summer side hustles. With services like Instacart, you can shop for and deliver groceries to customers, and it’s easy to start.
You just need a phone and a reliable car. You pick up orders through the app, shop for items, and then deliver them to the customer’s door.
You can choose your own hours. This means you can work whenever you have free time, such as in the summer. It’s perfect if you have a busy schedule or if you want flexible work.
On average, you can make between $11 and $20 per hour. Your earnings depend on factors like order size and tips. The more orders you complete efficiently, the more you can earn.
15. Mow lawns
Mowing lawns is a great way to make money during the summer. Many people need help keeping their yards neat. This means there are plenty of opportunities for you.
You can start by telling your neighbors and friends about the yard work services that you provide. And, of course, you will need equipment like a reliable lawn mower and other necessary tools.
Mowing lawns is great because it can be flexible. You can set your own hours. This makes it easy to fit into your summer schedule.
During the hot months, many people will need regular lawn care. This means you might have steady work all summer long. It’s also a job that doesn’t require a lot of experience.
16. Rent your house
Renting your house can be a great way to earn extra money during the summer. If you have extra space or a vacation home, you can try listing it on rental platforms because many people look for short-term rentals for their vacations.
You can use popular sites like Airbnb or Vrbo to reach a wide audience.
Consider your availability and set clear rules for your guests. You might want to rent your whole house or just a room. Either way, hosting guests can be flexible around your schedule.
I know someone who rents out their house during the summer so that they can travel those months and have money to put toward their trips. Their place always sells out fast, even up to a year in advance! And then for the rest of the year, they live in their house. So, this is definitely something that can be done just in the summer months to make extra money.
17. Clean houses
Cleaning houses is a great summer side hustle. Many people want their homes to be spotless during this time of year. You can provide services like dusting, vacuuming, mopping, and kitchen cleaning.
You don’t need special training to start. Just basic cleaning supplies like brooms, mops, and cleaning products. You can also advertise your services in local community boards or online classifieds.
Sometimes, families prefer a deep clean during summer. This could include windows, carpets, and upholstery. You can charge by the hour or set a flat rate for the whole job.
Working as a house cleaner can be flexible. You set your own hours and can choose how many clients to take on. If you do a good job, you might get regular clients who hire you every summer.
18. Lifeguard
Being a lifeguard is one of the best summer side hustles. If you love being by the water, this job is perfect for you. You get to work at pools, beaches, or water parks.
To become a lifeguard, you need to get certified. This usually involves taking a class where you learn swimming skills and rescue techniques.
Lifeguards have important responsibilities and they have to watch over swimmers and make sure everyone is safe. They also need to be ready to help in case of an emergency.
19. Rent your car
Renting out your car can be a great way to make extra money during the summer if you have a car just sitting around.
There are platforms where you can list your car for rent, such as Turo. This can be especially useful if you’re going on vacation or don’t need your car for a little bit.
Some travelers prefer renting from private owners because it’s often cheaper and more convenient than traditional rental companies. For me, I enjoy renting cars on Turo because I can get the exact car I want, and usually the car is closer to where I need to pick it up, so I waste less time.
20. Have a garage sale
Having a garage sale is a great way to make extra money during the summer. You can sell items you no longer need, like clothes, toys, and old electronics.
Start by going through your home and gathering things you want to sell and cleaning them up if needed (this will help you to get more money).
Next, advertise your garage sale. You can do this by putting up signs around your neighborhood and posting on social media sites like Facebook.
One thing I have noticed more and more people doing is having a community yard sale as well – this is where you may have your friends, family, or neighbors join in on one big yard sale. So, if you don’t have a ton of things to sell, this may be one way to still have a garage sale, declutter, and make some money.
21. Sell stuff
Similar to having a garage sale, you can also try selling stuff online, which is a great way to make some extra money in the summer. Look around your house for items you don’t use anymore. This could be clothes, toys, or old gadgets.
One of the easiest ways to sell your things is through online marketplaces like eBay or Facebook Marketplace.
For years, I had a business where I flipped items for resale. It was an easy way to make extra money!
22. Sports referee
Being a sports referee is a great side hustle for summer. Most games happen in the evenings and on weekends, so it fits well around a regular job.
Youth sports leagues are always looking for referees. You can earn around $25 to $50 per game. Higher levels, like high school or college, pay even more. Some college games can pay up to $150 per game.
To become a referee, check with your local sports departments. You might need some basic training, but it usually isn’t too hard. It’s a fun way to earn extra money and enjoy sports at the same time.
If you know the rules well and enjoy being on the field, this could be the perfect summer side hustle for you.
Frequently Asked Questions
Summer is a great time to explore side hustles that can fit into your schedule. Here, we’ll answer some common questions people have about summer side hustles.
What’s a good summer side hustle?
A good summer side hustle can be anything from freelance writing, dog walking, or being a virtual assistant. Think about what you enjoy doing and what skills you have. Can you write well? Do you love pets? There’s likely a hustle that matches your interests.
How can I make money fast in summer?
There are many ways to make money fast in the summer, such as walking dogs, answering online surveys, selling handmade crafts, hosting a garage sale, babysitting, and renting out your house.
What are the best summer side hustles from home?
The best summer side hustle from home depends on you and what you want to do. For me, my best summer side hustle is definitely blogging, and some other ideas include proofreading, bookkeeping, answering online surveys, and online tutoring.
What are easy summer side hustles for teenagers?
Teenagers can try babysitting, pet sitting, or tutoring for summer side hustles. Babysitting is usually in demand during summer when parents need a break (because kids are out of school!). Pet sitting is a fun way to spend time with animals. Tutoring younger students who need a little extra help over the summer can also be rewarding and well-paid.
What are the best summer side hustles for teachers?
Teachers have skills that can be used in side hustles like tutoring, freelance writing, or creating and selling lesson plans online. You can see a full list at 33 Best Summer Jobs for Teachers To Make Extra Money.
What are the best summer side hustles for college students?
The summer months are typically when a lot of college students try to find ways to make extra money. It makes sense; you may not have classes during the summer, or at least a smaller course load. If this is you and you want to make extra money in the summer, some good ways to make extra cash include freelance writing, working as a virtual assistant, joining a focus group, tutoring, selling handmade crafts, rideshare driving, house sitting, delivering groceries, babysitting, and mowing lawns.
Best Ways To Make Money in the Summer
I hope you enjoyed this article on the best summer side hustles to make extra money.
There are many reasons for why you may be looking for a summer side hustle. Maybe you want to put money toward your summer vacations, perhaps you have some free time in your own schedule, maybe you’re looking for a part-time job just for the summer, or something else.
There are many ways to make extra money in the summer, from in-person side hustles like mowing lawns and having a garage sale, to online side hustles like blogging and proofreading.
What do you think are the best ways to make money in the summer?
Credit card scams have been well publicized in recent years, but you may not be aware of the uptick in debit card scams. According to FICO®, the total number of compromised debit cards in 2023 was up 96% over the last year surveyed, and more than 315,000 cards were impacted.
Whether swiping your debit card in person or while shopping online, you’ll want to be vigilant. Here, learn the ins and outs of debit card fraud, plus how to protect yourself.
What Is Debit Card Fraud?
Debit card fraud occurs when an unauthorized third-party or individual uses your debit card to take out cash or make purchases without your permission. Scammers can use sensitive financial details — your card number, PIN, CVV code, and expiration date — to make purchases that drain your bank account.
If left undetected, debit card fraud could potentially wipe out your bank balance. You’ll need to go through a process to dispute the charges and/or withdrawals to try to get your money back.
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Common Debit Card Fraud Tactics
Debit card scams can take many forms. Here are some of the most common types of debit card fraud.
Skimming Devices
Fraudsters install skimming devices on ATMs and payment terminals. These devices can look as if they are simply part of the machine; they fit over the slot where your card usually goes. If you unwittingly insert your debit card, the skimmer can scan the microchip on your card. Your card’s details can then be downloaded, stored, and used without authorization. Skimming can happen at any payment terminal, but it tends to be most common at gas station pumps and ATMs.
Phishing Scams
A phishing scam occurs when scammers create fake sites, and/or send bogus emails or text messages in hopes of luring you to reveal your debit card details. Then, your financial credentials can be used by criminals.
These fraudsters often pretend to be an individual or company with a too-good-to-be-true offer or an urgent situation that spurs you to take action. For instance, they might offer a new laptop at a remarkably low price, or they could tell you your bank account has been compromised and you need to update your credentials immediately.
The goal is to get you to click on a fake site and input your debit card information. While less common, you might get a phone call with an offer that requires your card info on the spot.
Card Theft
Another common way fraudsters can use your debit card to make purchases or take out cash is to steal your physical card. Once they have their hands on your card, they might try to guess your PIN by taking a stab at what your PIN might be — for instance, your birth year. (This information may also be gleaned from social media accounts or the dark web once they have your name.)
Scammers might also figure out your PIN by “shoulder surfing” or subtly peering over your shoulder as you punch in your PIN at an ATM. Once they have that information, they could steal your card and use it to empty your checking account.
Recommended: When Were Debit Cards Invented?
Preventing Debit Card Fraud
Here are steps you can take to safeguard your personal and financial card data from would-be thieves:
Secure Your Card
You can secure your card by signing the back of your debit card, keeping your PIN private, and changing your PIN regularly.
You might also want to consider using a credit card for online purchases and when paying for gas at the pump. Credit cards typically have greater fraud protection than debit cards.
Monitor Accounts Regularly
By monitoring your accounts, you can spot any suspicious debit card activity more quickly. For instance, set text or email alerts for debit card transactions and aim to check recent activity through your bank’s mobile app.
Many people find checking their bank accounts once or even a few times a week is a wise move. It’s also a good idea to comb through your recent banking statements for anything that seems out-of-the-ordinary, such as:
• Purchases you didn’t make, including micro payments of a dollar or so
• Unauthorized big-ticket transactions
• Multiple purchases from the same store you didn’t authorize
Use Chip Cards and Digital Wallets
Chip cards use EMV technology, which involves a tiny embedded computer chip that makes it harder for fraudsters to skim and access your debit card’s details. They can be less susceptible to fraudulent activity than those with the standard magnetic strip.
Digital wallets have greater protections, too. They employ security features such as encryption and tokenization, which add a wall of protection against fraudsters trying to access your card data. Additionally, because digital wallets are stored on your phone, they’re usually safeguarded by biometric screening, multi-factor authentication, and passwords.
What To Do if Fraud Occurs
Should you fall victim to hackers, know that it can (and does) happen to anyone. With more sophisticated tactics and greater technology, fraudsters are getting better at finding ways to snag your debit card data. Here’s what to do should you find yourself a victim of debit card fraud.
Report It Immediately
If your debit card has been lost or stolen or you suspect fraud, the first step is to report it to your bank immediately. Reporting the fraud as soon as possible limits your financial responsibility and can halt the damage the scammer can do. Contact your bank ASAP if you notice unusual activity and request guidance. Depending on your particular situation, you may also have to take steps to report identity theft.
Dispute Fraudulent Charges
If the issue is a fraudulent charge on your debit card, try contacting the merchant to see if you can resolve the issue on their end.
At the same time, you’ll also want to dispute fraudulent charges by contacting the bank or credit union, as mentioned above. It’s important to do this ASAP (and no more than 60 days after the problem occurs). Once you dispute a charge, the financial institution can take up to 90 days to investigate and resolve your dispute.
You can also request a “chargeback” on debit card transactions. Essentially, a chargeback occurs when you dispute a transaction and reverse it. The money that got charged goes back into your account as the financial institution investigates the issue. When it’s resolved, you either keep the credit or, if the bank decides there wasn’t fraud, the funds are taken out of your account.
Get a New Debit Card
When you report fraudulent charges, the bank or credit union can freeze your account, which blocks anyone — including yourself — from using it. If they aren’t already sending you a new debit card, ask for one. Your old card is compromised, so you’ll want a new one.
Also, if you lose your debit card, that’s another reason to call your bank about freezing your account and getting a new one sent to you. Your missing card could be in the hands of a criminal.
Recommended: What Is An ATM Card?
Debit Card Fraud Protections
Under the Electronic Fund Transfer Act (EFTA), if you let your financial institution know within two business days after you notice suspicious activity, you are typically only liable for up to $50. If you inform them after that 48-hour period but within 60 days, you could be liable for up to $500. If you don’t notify them until more than 60 days has passed since the incident, you could face unlimited losses.
Tips for Safer Debit Card Use
Next, delve into best practices to keep your debit card and its details secure.
Avoid Unsecured Wifi
Hackers will go to great lengths to try to tap unsecured networks and steal private information, including personal details, passwords, and data about your checking and savings accounts, plus other financial intel.
To avoid making your banking data vulnerable to thieves, don’t use public or unsecured wifi. Instead, make sure you’re on a secure network. Secure networks have protective measures in place to ward off unauthorized access and theft.
Update PINs and Passwords
Make it a habit to update your debit card and app PIN and banking passwords regularly. Make sure you use unique, strong passwords. In other words, alphanumeric passwords that also contain special symbols. You’ll also want to steer clear of using weak passwords that can be easily guessed, like your date of birth.
Use Credit Cards for More Protection
Credit cards can offer greater protection than debit cards. When a hacker uses your credit card for fraudulent purchases, they’re not using your money but your credit. So you won’t risk having your bank account wiped out.
Plus, most credit cards provide zero liability protection for unauthorized charges. And, if you notice any suspicious activity, you can likely freeze your card to prevent any additional credit card scams from occurring.
The Takeaway
While debit card fraud is on the rise and scammers are more sophisticated in their tactics, you can take steps to prevent debit card fraud from happening. Monitoring your accounts regularly, keeping your credentials private, and being wary of skimmers are among those moves that can help you keep your bank account secure.
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FAQ
What are common debit card fraud red flags?
Red flags for credit card debt include multiple transactions from the same retailer, unusually large purchases, or purchases made in a place you haven’t visited. It’s always a good idea to check your transactions and monitor your banking activity regularly, at least once a week.
Are debit or credit cards safer?
Credit cards offer greater fraud protection and are generally safer to use than debit cards. Many major card issuers offer zero liability fraud protection. However, you can accrue interest on your purchases, while debit cards simply tap funds you have on deposit.
Can a bank reverse fraudulent debit charges?
Yes, a bank may be able to reverse fraudulent debit card charges. You can request a chargeback, for example, when a transaction goes awry. If your card was lost or stolen and there has been suspicious activity, let your financial institution know ASAP. If you alert them within two business days after discovering the fraudulent charges, you generally won’t be held accountable for more than $50. If it’s been more than two days but less than 60 days, you can be liable for $500. If you wait more than 60 days, you could endure unlimited losses.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a recurring deposit of regular income to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government benefit payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, or are non-recurring in nature (e.g., IRS tax refunds), do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.
As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Mortgage Rates Shrug Off Seemingly Threatening Inflation Data to hit 5 Month Lows
Yesterday was all about the CONSUMER Price Index (CPI), which helped mortgage rates drop at the 2nd fastest pace of the year. Today brough the PRODUCER Price Index (PPI), and the message was a bit different.
While PPI is not in the same league as CPI in terms of its impact on rates, there have been several recent examples that have left a mark on the market, for better or worse. When this morning’s installment came out, it looked like we’d have another example to count, and not the good kind.
Between the new headline and the revision to last month’s numbers, annual PPI ended up a half a percent higher than the market expected. If that sort of thing happened in CPI, rates would absolutely skyrocket. Even though it was a PPI problem, it still would not have been a surprise to see at least SOME upward pressure today.
But instead, rates managed to move LOWER, albeit not by much. Still… any improvement in the wake of such numbers requires an explanation. In this case, it came down to the underlying components of the PPI data not translating to the consumer-facing inflation metrics that guide rate policy.
In other words, sometimes higher PPI suggests upward pressure on the PCE inflation data (the broadest national measure of consumer inflation and the most closely-watched by the Fed), but today’s report did not. Bonds initially panicked for a split second, but then eased into modestly stronger territory and stayed there all day without any drama.
The average lender was able to drop rates by just a hair, but even if victory were limited to preserving yesterday’s victory, that would be victory enough.
Long-term mortgage rates fell for the fifth time in six weeks on Thursday.
Freddie Mac reported 6.89% as the average on a 30-year mortgage, down six basis points from last week.
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“Following June’s jobs report, which showed a cooling labor market, the 10-year Treasury yield decreased this week and mortgage rates followed suit,” said Sam Khater, Freddie Mac’s Chief Economist. We’re also seeing more inventory on the market, including a fair number of listings with price cuts, which is an encouraging sign for prospective buyers.”
The UrbanTurf Mortgage Rate Disclaimer: The rates reported by Freddie Mac for 30-year mortgages are usually the best rates that the most qualified borrowers can get, so borrowers or those considering refinancing should not necessarily read this news and think that they can go out and get a loan with the quoted interest rate.
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This article originally published at https://dc.urbanturf.com/articles/blog/mortgage_rates_tick_down/22505.
The latest 2023 Home Mortgage Disclosure Act (HMDA) data is in, and it confirms a few key trend lines for the mortgage industry: there was significantly less interest in mortgage loans in 2023, and fewer banks thought it worth participating in the market.
The full dataset from Consumer Financial Protection Bureau (CFPB) and the Federal Financial Institutions Examination Council (FFIEC), includes information from 5,113 financial institutions, which encompass mortgage companies, banks, savings associations and credit unions. This is a 14.6% increase in the total number of reporting institutions when compared to the prior year, the CFPB stated.
“The HMDA data are the most comprehensive source of publicly available information on mortgage market activity,” the announcement said. “The data are used by industry, consumer groups, regulators, and others to assess potential fair lending risks and for other regulatory and informational purposes.
“The data also help the public assess how financial institutions are serving the housing needs of their local communities and facilitate federal financial regulators’ fair lending, consumer compliance, and Community Reinvestment Act (CRA) examinations.”
Alongside the full dataset is the Snapshot National Loan-Level Dataset, which contains national HMDA datasets as of May 1, 2024. It includes some more granular detail on attributes featured in the full dataset.
Despite the growth in the number of independent mortgage banks, the total number of applications is relatively low.
“The 2023 data include information on 10 million home loan applications, a decrease from the 14.3 million reported in 2022,” the CFPB said based on the snapshot. “Among them, 7.7 million were closed-end (e.g., a home mortgage loan) and 2.1 million were open-end (e.g., a home equity line of credit). Another 266,000 records are from financial institutions making use of statutory partial exemptions and did not indicate whether they were closed-end or open-end.”
Nonbank mortgage companies accounted for 68.8% of all “first lien, one- to four-family, site-built, owner-occupied home-purchase loans” last year, which marks an increase from the 60.2% figure recorded in 2022. The share of these loans serving Black borrowers rose by 0.1% to 8.2% in 2023, while Hispanic-White borrowers’ share grew from 9.1% to 9.9% in that same period.
In 2023, Black or African American and Hispanic-White applicants experienced denial rates of 16.6% and 12.0%, respectively. Denial rates for Asian and non-Hispanic-White applicants were 9.0% and 5.8%, respectively.
Other data products were also made available by FFIEC on Friday, including the HMDA Dynamic National Loan-Level Dataset which is updated “on a weekly basis to reflect late submissions and resubmissions,” the CFPB said.
Aggregate and disclosure reports also help to summarize data from individual financial institutions and geographic areas, while the HMDA Data Browser has user-control functionality allowing the creation of customized tables and maps.
The makeover includes a heftier sign-up offer for new cardholders, more points earned on some everyday purchases, changes to how you earn status, and an interest-free financing option.
The card will retain its $0 annual fee.
Here’s a breakdown of the card’s latest features.
What’s changing
Bigger sign-up bonus
The Marriott Bonvoy Bold® Credit Card now features the following welcome offer: Earn 60,000 bonus points and one Free Night Award (valued up to 50,000 points) after spending $2,000 on purchases in the first three months of opening the account.
That’s a significant improvement over the card’s previous offer: 30,000 bonus points after spending $1,000 on purchases in the first three months of opening the account.
More points for some everyday purchases — but less back on ‘other’ travel
The Marriott Bonvoy Bold® Credit Card will offer the following ongoing rewards:
3 points per $1 spent at participating Marriott Bonvoy hotels. (No change.)
2 points per $1 spent at grocery stores and on services that include rideshares, food deliveries, select streaming, internet, cable and phone. (Previously, these categories earned 1 point per $1 spent.)
1 point per $1 on everything else, including “other” travel purchases such as airfare, taxis and trains. (Previously, those forms of travel earned 2 points per $1 spent.)
Different approach to status
Previously, the Marriott Bonvoy Bold® Credit Card offered 15 Elite Night credits per calendar year, which would qualify you for Silver Elite status (and put you 10 elite nights away from Gold Elite status).
Now, you’ll receive automatic Silver Elite status, but only get five elite qualifying nights toward your next status tier (leaving you 20 elite nights away from Gold Elite status).
Silver Elite status comes with perks like priority late checkout (if available), 10% bonus points on qualifying hotel purchases and complimentary Wi-Fi. Terms apply.
An interest-free financing option
If you can qualify for it, the Travel Now, Pay Later option allows you to break up eligible travel purchases ranging between $100 and $5,000 into equal monthly payments without interest charges or fees. Purchases must be made directly with an airline or hotel participating in Marriott Bonvoy to qualify.
“After job cuts in 2023, and with lenders generally less pessimistic about the economy and the direction of the mortgage market, staff sizes appear to be normalizing,” Fannie Mae chief economist Doug Duncan said in the MLSS report. “Some shared plans to increase their workforce this year and many remain focused on talent management.” Lenders’ … [Read more…]
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New doctors with a lot of student loan debt and no savings can have trouble qualifying for a conventional mortgage.
Physician mortgage loans provide an alternative that overlooks these factors.
These specialty home loans are available from many, but not all, traditional lenders.
You might think having a medical degree makes getting a home loan a snap. Not necessarily. Traditional home loans penalize you for having a high debt-to-income ratio, something medical professionals, especially recent graduates, typically have because of student loans. Other negatives for physicians include little to no savings, and in many cases, no permanent job yet.
On the other hand, doctors are among the most financially stable professionals in the workplace. Once established, they tend to have higher incomes, less overall debt, and, importantly, very low default rates when it comes to home loans. Realizing this, banks and other mortgage lenders have come up with a special type of loan tailored to medical professionals called a physician mortgage loan, or doctor loan.
What are physician mortgage loans?
A physician mortgage loan is a specialized loan offered only to medical and certain other professionals. They essentially ignore high student loan debt and low or no savings, especially early in the borrower’s career.
The reason these negatives are temporarily overlooked is because doctors and other professionals typically become high net-worth individuals, with little debt, substantial savings, and very rarely lose their homes to foreclosure.
Benefits of physician mortgage loans
Physician mortgage loans can do a lot for helping medical professionals hoping to buy a home. They come with:
Low down payment requirements
With a physician mortgage, you can buy a home with as little as no money down. This may allow you to borrow more and afford a higher-priced house without worrying about a big down payment. It can also help you buy a home sooner if you have little in savings.
No private mortgage insurance (PMI)
Private mortgage insurance (PMI) is typically required if you make a down payment of 20% or less, but that’s not the case with physician loans. According to Freddie Mac, this typically adds anywhere from $30 to $70 to your monthly payment for every $100,000 you borrow.
Flexible debt-to-income ratios
Physician loans typically require a debt-to-income ratio of 45% or less, which is higher than some other loan programs. It also won’t take student loans into account when calculating this number (more on this below).
Special consideration for student loans
Another feature of physician mortgages is that they typically ignore the total owed on student loans and only consider the amount of the mortgage’s monthly payment when looking at your debts. This can be helpful for physicians, who often have to take out very large loans to pay for their advanced education.
Physician mortgage eligibility requirements
Although the name suggests these loans are only available to doctors, many lenders offer the same loans to other high-income professionals. Eligibility for physician mortgage loans typically extends to:
Dentists
Podiatrists
Veterinarians
Optometrists
Accountants
Attorneys
Certified registered nurse anesthetists (although there are other home loans for nurses, too)
Advanced practice clinicians
Beyond being in one of these professionals you’ll also need to:
Have your income and employment verified
A signed employment contract is often accepted as proof of income, as long as it indicates the amount of your current or expected future salary. Most traditional borrowers have to supply pay stubs or two years of tax returns. You’ll also need proof of your medical or other degree.
Meet credit score requirements
While physician mortgage loan requirements tend to be more flexible than other loan programs, that’s not the case when it comes to credit scores. Though the exact number varies by lender, you’ll usually need a credit score of 700 or higher to get a physician mortgage. This is higher than most other loan programs (FHA loans allow down to 500 credit scores in some cases).
How to apply for a physician mortgage loan
If you’re a medical professional, a physician mortgage might help you buy a home. Follow these steps if you’re interested in applying for a physician mortgage loan:
Find lenders specializing in physician loans
Many banks and traditional lenders offer physician mortgage loans. Wrenne Financial Planning has compiled one list of such lenders, but the easiest way to find out is to call or visit the website of lenders in your area to determine if they offer this product.
Required documentation
You usually won’t need as much documentation with a physician mortgage as you would with another kind of loan. You won’t need tax returns or W-2s, but instead, a signed employment contract indicating your current and future income, proof of your degree, and student loan statements showing you’re current on your payments.
Application process
Once you find a lender, you’ll fill out their application, agree to a credit check, and submit the required documents. Once your loan moves through underwriting, you will pay your closing costs and sign your loan documents.
Closing costs typically include lender fees, attorney fees, title insurance, and taxes, and they average about 3% of the mortgage amount.
Comparing physician mortgage loans with conventional loans
Physician mortgage loans are structured similarly to conventional loans but are much more accommodating to doctors and other high-income individuals given their uncommon financial circumstances. For that reason, most of the accommodations have to do with getting approved.
Here’s a look at how physician mortgage loans vs. conventional loans measure up:
Key differences
Physician mortgages often require no down payment, and they come with no PMI either. With conventional loans, you’ll owe PMI if you make a down payment of less than 20%.
You’ll also need lots more documentation with conventional loans, including W-2s, tax returns, pay stubs, bank statements, and more. On the bright side, you may be allowed to have a lower credit score and still qualify.
Physician loans also treat student loans differently, often excluding them from your total debt-to-income ratio. This can make it easier for medical professionals to qualify, despite high student loan balances.
Pros and cons
We’ve already touched on the benefits of physician mortgage loans, but there are drawbacks to weigh, too.
First, consider the advantage of putting no money down versus the downside. Not only can this put you at risk of buying more house than you can afford, it can also immediately put you “underwater,” meaning you owe more on your home than you could get if you sold it.
Additionally, an average credit score requirement of 700 may preclude you from the home of your dreams before the amount of the down payment even comes up. Another factor that is often overlooked is that most physician mortgage loans usually have an adjustable interest rate instead of a fixed rate.
Physician mortgage FAQs
A physician mortgage loan is a special type of mortgage designed for doctors and medical professionals. They often have low (or no) down payment requirements, no PMI, and exclude student loans from debt-to-income ratio calculations. This can make it easier for doctors to qualify for a mortgage.
Medical doctors, dentists, and other healthcare professionals with an MD, DO, DDS, or DMD degree are usually eligible for physician mortgages.
Low down payments, no PMI, flexible debt-to-income ratios, and special consideration of student loan debt are just a few of the benefits of physician mortgage loans for doctors.
You’ll need to look for lenders specializing in physician mortgage loans, as not all companies offer these. They can guide you through the application process and required documentation.
Physician mortgage loans often have more favorable terms for doctors, but may have higher interest rates compared to conventional loans. They also may require higher credit scores.
Jim Probasco
Aly J. Yale
Aly J. Yale is a writer and editor with more than 10 years of experience covering personal finance topics including mortgages and real estate. She contributes to Personal Finance Insider’s mortgages and loans coverage.ExperienceAly began her journalism career as reporter, and later an editor, for several neighborhood sections of the Dallas Morning News.Her work has been published in several national publications, including Bankrate, CBS, Forbes, Fortune, Money, Newsweek, US News and World Report, the Wall Street Journal, and Yahoo Finance. She’s also contributed to a variety of mortgage and real-estate publications, such as The Balance, Builder Magazine, Housingwire, MReport, and The Mortgage Reports. Her favorite personal finance tip is to schedule regular check-ins to make sure your credit cards, savings accounts, and other financial vehicles still align with your budget and financial goals. She is a member of the National Association of Real Estate Editors (NAREE).ExpertiseAly’s areas of personal finance expertise include:
Mortgages
Loans
Real estate
Insurance
EducationAly is a graduate of Texas Christian University, where she received a bachelor’s degree in radio/TV/film and news-editorial journalism.