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Apache is functioning normally

February 5, 2024 by Brett Tams

With so much to offer, the cheapest places to live in Arizona consist of picturesque and popular cities, so no matter your budget, you’ll find the perfect home.

Arizona’s average rent prices

From the upscale city of Scottsdale to the college town of Tempe, rents throughout the state sit on the more affordable side. For example, a one-bedroom apartment will cost you $1,322 on average per month.

While that number is up by almost 8 percent over last year, it’s still close to the median rent for the entire U.S.

The cheapest cities in Arizona for renters

You don’t have to live in Phoenix to experience what makes Arizona such a great place to live. Although this big, capital city has a lot going on, you do have alternatives that keep you close by, but at a more affordable price. Opting for a smaller city can improve your cost of living without sacrificing access to activities and fun.

Give your monthly budget a break. Consider one of the cheapest places to live in Arizona as your new home.

10. Queen Creek

One-bedroom average rent price: $1,189
Average rent price change: -8.18%

With an easy commute to Phoenix, Queen Creek gives you the benefits of small-town living without being far from an urban center. This laid-back community offers horseback riding, more than one mountain range to explore and four 18-hole golf courses. Queen Creek’s proximity to the airport also makes it an affordable place to live even if you spend a large amount of time traveling.

This family-friendly, innovative city continues to grow without losing its reputation as one of the best-kept secrets in Arizona.

9. Litchfield Park

One-bedroom average rent price: $1,152
Average rent price change: -13%

Dotted with palm and orange trees, the unique appearance of Litchfield Park only cements its reputation as another local gem within Arizona. Full of beautiful homes, sidewalk cafes and casual and comfortable public spaces, you can find a cozy feel at the right price.

When it’s time for a little luxury, you won’t have to go far. The Wigwam, located in Litchfield Park, has served as an elegant retreat for more than a century. With more than 400 acres of amenities, restaurants, golf courses and more, it’s a definite bonus to have somewhere to pamper yourself within such an affordable area to live.

8. Avondale

One-bedroom average rent price: $1,118
Average rent price change: 7.22%

Known as one of the primary suburbs of Phoenix, Avondale is a quickly growing city with plenty of open space, recreational amenities and employment opportunities. Located where the Sierra Estrella Mountains and Agua Fria and Gila rivers meet, Avondale continues to develop. A new city center is currently underway to bring even more to this affordable town.

7. Glendale

One-bedroom average rent price: $1,097
Average rent price change: 0.98%

With a downtown labeled as one of the best shopping districts in the country, Glendale has a diverse history that residents treasure. One of the four largest cities in Arizona, it offers something for everyone from annual music festivals to a water park to the University of Phoenix Stadium, which hosted the 2015 Super Bowl.

Giving off a modern vibe and providing a lot of entertainment options, it’s no wonder Glendale is one of Phoenix’s most popular suburbs to call home.

6. Goodyear

One-bedroom average rent price: $1,078
Average rent price change: 45.33%

More than 20,000 acres of recreational parks, 47 miles of trails and more than 100 miles of paved bike routes all make Goodyear a perfect city for those who prefer an active lifestyle. It’s also home to the Goodyear Ballpark where you can catch the Cincinnati Reds and Cleveland Indians during spring training.

Named for the well-known tire company, Goodyear offers a safe, small-town feel, with affordable housing, only 20 minutes from Phoenix.

5. Mesa

One-bedroom average rent price: $1,052
Average rent price change: 0.29%

For a dose of natural history, Mesa is an ideal place to live. Home to the Mesa Grande Cultural Park, you can see a centuries-old ceremonial mound and learn more about the native Hohokam people. You’ll also find the Arizona Museum of Natural History and the i.d.e.a Museum here.

This nicely-priced town sits alongside the Tonto National Forest, the fifth-largest forest in the United States. Mesa keeps you active and outdoors as you enjoy living in some of the best weather in the country.

4. Casa Grande

Source: Rent. / Courtyard Apartments

One-bedroom average rent price: $914
Average rent price change: -6.17%

Situated halfway between Phoenix and Tucson, Casa Grande provides a relaxing atmosphere for those who want to live in Arizona without the bustle of a big city. Residents golf year-round when they’re not walking through the historic downtown area, hiking, biking or enjoying local community-wide events.

With historic charm and a lot of amenities, Casa Grande looks to create an ideal quality of life for residents at a price everyone can afford.

3. Tucson

One-bedroom average rent price: $835
Average rent price change: 5.50%

The biggest Arizona city on the list, Tucson encompasses a huge amount of space in the southern part of the state. Nestled in the Sonoran Desert, there’s a good chance you’ll see a giant saguaro cactus from your own apartment window.

With all the amenities of a large city — like resorts, golf and amazing shopping and restaurants — and the beauty of mountain ranges and desert landscapes, you get the best of both worlds in Tucson without having to break the bank.

2. Yuma

One-bedroom average rent price: $759
Average rent price change: -4.18%

Overlooking the Colorado River, Yuma is home to the Marine Corps Air Station and thousands of Marines and their families. It’s also a popular destination for snowbirds, residents who spend only the cold winter months living comfortably in the Arizona sun. They double the city’s population during the first few months of each year.

No matter the population size, Yuma strives to preserve its culture and heritage alongside its wide array of outdoor activities. The city is also close to Mexico and San Diego, offering opportunities for easy getaways you won’t find everywhere in the state.

1. Sierra Vista

One-bedroom average rent price: $663
Average rent price change: 17.87%

Living in Sierra Vista gives you a perfect balance between an active, engaged lifestyle and affordability. Mixing a smaller population with big-city amenities, Sierra Vista is also a popular spot for those interested in technology. This is, in part, thanks to the tech-forward missions at Fort Huachuca.

The city supports a healthy mix of young professionals and those looking for a slower pace of life. It has received distinctions as both a best place to retire and a best place to live, work and play. And, that’s all for less than what you’d pay in many other cities around the country.

The 10 most expensive places to call home in Arizona

Looking for a little upgrade in where you call home in Arizona? For some extra luxury in your rental, check out the most expensive places in the state to call home.

Methodology

Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments. We pulled our data in December 2020, and it goes back for one year. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.

We excluded cities with insufficient inventory from this report.

The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.

Lesly Gregory has over 15 years of marketing experience, ranging from community management to blogging to creating marketing collateral for a variety of industries. A graduate of Boston University, Lesly holds a B.S. in Journalism. She currently lives in Atlanta with her husband, two young children, three cats and assorted fish.

Source: rent.com

Apache is functioning normally

February 4, 2024 by Brett Tams

The best travel rewards are the ones that get you where you want to go, and some do a better job of that than others. Airline miles can help you book free flights and hotel points can help you book free rooms, but transferable points (like Chase Ultimate Rewards and AmEx Membership Rewards) can do both — and more.

Here are six reasons why transferable points are at the apex of travel rewards, and why you should prioritize earning them over other types of points and miles.

1. Transferable points provide flexibility

Suppose you’re in the market for a new travel credit card and you’ve narrowed your decision to two choices: the first card earns points that can be redeemed with your favorite airline, while the second card earns points that can be redeemed not only with your favorite airline, but also with your favorite hotel chain. The cards are functionally identical otherwise. Which do you choose?

The second card is the obvious answer. The option to redeem with both airline and hotel partners makes the rewards you earn from it more useful, since they can meet a broader range of award travel needs. In short, the rewards earned by the second card are more valuable because they’re more flexible.

Transferable points programs expand on that premise by partnering with a variety of airline and hotel loyalty programs, giving you a diverse range of redemption options instead of just one.

Flexibility isn’t the only ingredient needed to add value, since making points transferable doesn’t necessarily mean transferring them is worthwhile. For example, you can transfer Hilton Honors points to more than two dozen airline partners, but in most cases the transfer ratio is a dismal 10:1 (i.e., 10,000 Hilton points becomes 1,000 airline miles).

That provides marginal value because it’s only useful in marginal situations, like if you urgently need a small number of miles to book a highly valuable award flight. While Hilton Honors points are technically “transferable,” their transferability doesn’t add much.

In contrast, the major transferable points programs generally offer neutral or favorable transfer ratios, as well as transfers that process quickly (or in many cases, instantly). That kind of flexibility adds more clear and consistent value.

2. Transferable points have greater upside

Suppose you’re booking a long weekend trip from Denver to San Francisco in the spring. You’ll be attending a wedding at the Hyatt Regency San Francisco and plan to pay out of pocket for your room there, but you have 60,000 United Airlines MileagePlus miles you can use to book your flight.

You want to arrive Thursday morning and return Sunday evening, so you search United’s website and find an itinerary that suits your needs for 32,200 miles and $11.20 in fees. You compare that with the cash price of $375.72 and calculate a redemption value of 1.13 cents per mile. That’s quite close to NerdWallet’s valuation of 1.2 cents per mile, so you’re satisfied.

Now imagine that instead of United miles, you have a reserve of 60,000 Chase Ultimate Rewards points. Instead of being able to redeem them solely for United flights, you can transfer those points to 11 airlines and three hotels based on which one suits your needs and offers the best value.

For example, instead of booking with United, you could transfer points to Southwest Airlines and book a comparable (though not identical) itinerary for 27,577 points and $11.20 in fees, versus a cash price of $386.97.

Assuming you’re not bothered by the earlier outbound departure and you don’t have a strong preference for one airline, the ability to choose between them saves you about 4,600 points on your flight.

Alternatively, you could transfer points to Hyatt to book your stay at the Hyatt Regency San Francisco. The award cost is 17,000 points per night, totaling 51,000 points for your three-night visit.

Cash rates start at $323 per night, but the cheapest rates require advance purchase and are nonrefundable, while booking with points generally allows you to cancel with no penalty until two days before arrival.

A cash rate with a comparable cancellation policy totals $1,386.22 after taxes and fees, which yields a redemption value of over 2.7 cents per point (more than double what you’d get by redeeming for the United flights above).

This is just one example about a set itinerary, but it illustrates how the versatility of transferable points provides an upside when you’re not locked into specific travel providers.

Having more redemption options yields more opportunities to use points efficiently, which in turn raises the expected value of each redemption.

3. Transferable points have more favorable expiration policies

Many loyalty programs have expiration policies that can cause your rewards to vanish over time. While you’ll generally have 12 to 36 months to keep rewards active, some points and miles expire in as little as six months.

It’s easy to let rewards lapse and disappear in that timeframe if you’re not a frequent traveler and you don’t monitor your loyalty accounts vigilantly.

In contrast, transferable points generally don’t expire as long as your account remains open and in good standing. That means you won’t have to keep track of when you last logged activity in each loyalty program or take action to keep dormant rewards from expiring.

4. Transferable points offer lucrative transfer bonuses

Most transfers to airline and hotel partners are done at a 1:1 ratio, so transferring typically gets you the same number of rewards you put in.

For example, transferring 1,000 Chase Ultimate Rewards points to United Airlines gets you 1,000 United miles, or transferring 1,000 Citi ThankYou Rewards points to Wyndham Hotels gets you 1,000 Wyndham points. While exchange rates vary depending on the loyalty program and credit card you’re using, a 1:1 transfer ratio is the industry standard.

However, transferable points programs offer occasional transfer bonuses that boost the exchange rate, commonly by 20%-50%. Instead of the usual 1:1, every 1,000 points you transfer with a bonus could get you 1,200 to 1,500 points with the partner program (or in some cases, more).

These higher exchange rates can save you points when a transfer bonus aligns with your travel plans, since booking the trip you want requires fewer transferable points than it would normally.

Transfer bonuses also create opportunities to top up your loyalty account balances by sending points to the programs you use most (even if you don’t have immediate plans to redeem them).

5. Transferable points reduce the risk of devaluation

Loyalty programs change over time, and while they sometimes add features, lower award prices or introduce new redemption options that make rewards more valuable, the opposite is more common.

Devaluations are a regular occurrence among airline and hotel programs and sometimes take place with no warning. When your points or miles are suddenly in decline, you have little recourse.

Transferable points programs aren’t immune from devaluations; they add, remove and modify features just like airline and hotel programs.

However, transferable points are insulated from devaluation by the sheer number of available redemption options — when a single airline or hotel program devalues, other transfer partners are unaffected, so transferable points retain the bulk of their worth.

In short, earning transferable points is the award travel equivalent of diversifying investments: By having a share of many loyalty programs, you’re less affected by a downturn in one of them.

6. Transferable points offer alternative redemption options

Transfers to airline and hotel partners tend to be the most valuable use of rewards, but transferable points programs feature a variety of other ways to redeem them.

One is to book flights, hotels or other travel directly through the program’s travel portal, especially with programs that offer added value for travel portal redemptions. For example, Chase Sapphire Reserve® cardholders get 1.5 cents per point when redeeming through the Chase Ultimate Rewards travel portal.

Chase Sapphire Reserve®

NerdWallet Rating

Annual fee

$550

Some programs also offer added value when redeeming for cash equivalents like statement credits or gift cards. For example, the American Express Platinum Card for Schwab lets you redeem Membership Rewards points at 1.1 cents apiece for cash deposits to an eligible Charles Schwab account. Terms apply.

Even though cashing out yields a lower average return than transfers to travel partners, it’s nice to be given the option when you need it, as it’s one you generally don’t have with other points and miles programs.

Why you should be using transferable points

Among travel rewards, transferable points have the best chance to provide useful redemption options, yield a high return and retain their value over time.

That’s why they’re broadly prized above rewards from individual airline and hotel programs, and why earning them should be the focus of your award travel strategy.

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2024, including those best for:

Source: nerdwallet.com

Apache is functioning normally

February 1, 2024 by Brett Tams

The following Delta Air Lines credit cards issued by American Express are getting new terms as of Feb. 1, 2024, that will make them more expensive to hold:

Beyond that cost, some of the cards’ features and benefits are also changing.

What to expect

The three Delta credit cards will maintain their ongoing reward structures and many of their perks, including complimentary checked bags (for the primary cardholder and up to eight passengers on the reservation); priority boarding; and 20% savings on eligible in-flight purchases. All of the cards will also continue to skip foreign transaction fees. Terms apply.

But here’s what will be different for each card:

Delta SkyMiles® Gold American Express Card

An increased annual fee: The annual fee is changing from $99 to $150 after the first year.
A different welcome offer: Earn 70,000 bonus miles after you spend $3,000 in purchases on your new card in your first six months of card membership. This is an increase from the previous welcome offer that provided 40,000 bonus miles after spending $2,000 in purchases on the new card within the first six months.
Enhanced credits: Get a $200 Delta flight credit — up from $100 — when you spend $10,000 with the card in a calendar year. There’s also an annual credit of $100 for Delta Stays that can be used to book a prepaid hotel stay or vacation rental through delta.com.
Terms apply.

Delta SkyMiles® Platinum American Express Card

An increased annual fee: The annual fee is rising to $350 from $250.
A different welcome offer: Earn 90,000 bonus miles after you spend $4,000 in purchases on your new card in your first six months of card membership. It’s a larger offer compared with the previous 50,000 bonus miles earned after spending $3,000 in purchases with the new card in the first six months.
Medallion Status opportunities: Get closer to earning Medallion Status with MQD Headstart, which offers $2,500 MQDs each Medallion qualification year. The new MQD Boost also inches you closer to status when you make purchases with the card. You’ll earn $1 MQD for every $20 on eligible purchases.
An enhanced companion certificate: The companion certificate on one main cabin round trip for someone traveling on the same itinerary as you will now expand to include round trip flights to Hawaii, Alaska, Mexico, Caribbean or Central America. Previously, it was available only for trips to the U.S. and Puerto Rico.
New perks: If you’re not a Medallion member, you’ll be added to the Complimentary Upgrade list after Delta SkyMiles Medallion members and Reserve Card members. The list includes upgrades to Delta One, First Class and Delta Comfort+ seats. You’ll also get Hertz Five Star Status, which makes you eligible for upgrades (if available), points and more.
More credits: Get a $120 credit to use at Resy restaurants (up to $10 per month) and a $120 credit for U.S. rideshare purchases (up to $10 per month) when you enroll. There’s also an annual credit of $150 for Delta Stays that can be applied to prepaid hotel and vacation rental stays booked through delta.com.
Terms apply.

The Delta SkyMiles® Platinum American Express Card will maintain its credit for Global Entry or TSA PreCheck application fees. Terms apply.

Delta SkyMiles® Reserve American Express Card

An increased annual fee: The annual fee is increasing to $650 from $550.
A different welcome offer: Earn 100,000 bonus miles after you spend $6,000 in purchases on your new card in your first six months of card membership. Previously, you earned 60,000 bonus miles after spending $5,000 in purchases with the new card in the first six months.
Medallion Status opportunities: MQD Headstart offers $2,500 MQDs each Medallion Year and MQD Boost provides an additional $1 for every $10 in eligible purchases.
An enhanced companion certificate: The companion certificate for someone traveling on the same itinerary on one First Class, Delta Comfort+ or Main Cabin round-trip flight will expand to include round-trip flights to Hawaii, Alaska, Mexico, the Caribbean or Central America.
New perks: If you’re not a Medallion member, you’ll be eligible for upgrades to Delta One, First Class or Delta Comfort+ seats after Delta SkyMiles Medallion members. You’ll also get Hertz President’s Circle Status, which gets you upgrades, elevated points, a broad selection of rentals and more.
More credits: Cardholders will get a $240 credit to use at Resy restaurants (up to $20 per month) and a $120 rideshare credit with select U.S. providers (up to $10 per month) when you enroll. Cardholders will also get an annual $200 Delta Stays credit to be used for prepaid hotel and vacation rental stays booked through delta.com.
Terms apply.

The Delta SkyMiles® Reserve American Express Card will continue offering a credit for Global Entry or TSA PreCheck application fees. Terms apply.

What it means for cardholders

If you opened an account before Feb. 1, 2024, the new annual fees will go into effect at your next renewal date on or after May 1, 2024. Before then, you’ll have to consider whether your card is still a good fit.

With the Delta SkyMiles® Platinum American Express Card and Delta SkyMiles® Reserve American Express Card, carefully weigh the value of those Resy and rideshare credits that are issued in small monthly increments. If you don’t already spend in these categories every month, they won’t be of much use. With the Delta SkyMiles® Gold American Express Card, consider whether you spend enough to make use of the flight credit or check bags frequently to make up the annual cost.

If you fly Delta often and can make efficient use of any of these three cards’ benefits to offset the annual cost and snag savings, you’ll get a decent deal.

To view rates and fees of the Delta SkyMiles® Gold American Express Card, see this page.

To view rates and fees of the Delta SkyMiles® Platinum American Express Card, see this page.

To view rates and fees of the Delta SkyMiles® Reserve American Express Card, see this page.

Source: nerdwallet.com

Apache is functioning normally

January 31, 2024 by Brett Tams

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UK average mortgage rates fell for the first time in over two years, according to data from the Bank of England, suggesting that the burden on homeowners is easing as lower borrowing costs filter through.

The data, released on Tuesday, adds to signs of stabilisation in the property market as mortgage approvals rose for the third consecutive time to a six-month high in December.

The BoE data also showed the “effective” interest rate — the actual interest paid — on newly drawn mortgages fell by 6 basis points to 5.28 per cent in December, marking the first drop since November 2021.

“There are green shoots of a recovery in the housing market and perhaps the wider economy,” said Ashley Webb, economist at the consultancy Capital Economics.

Net mortgage approvals for house purchases rose from 49,300 in November to 50,500 last month — the highest reading since June.

Meanwhile, net approvals for remortgaging also increased from 25,700 in November to 30,800 in December, in a further sign that activity is returning to the property market.

Mortgage approvals offer an early indication of the health of the housing market. The latest figures will be closely monitored by policymakers ahead of the upcoming BoE Monetary Policy Meeting on Thursday.

Rates on popular fixed mortgage deals have started to ease from the summer, following expectations that the central bank will cut interest rates later this year. Markets expect that the BoE will hold the benchmark rate at 5.25 per cent on Thursday, but will start cutting rates in June.

The two-year fixed mortgage rates with 60 per cent loan-to-value eased to 4.9 per cent in December from 5.1 per cent in November, well below the peak of 6.2 per cent in July. Rates on popular five-year deals have also declined since the summer, the BoE data showed.

The data follows other indicators of an improving outlook for the UK property market. House prices rose at the end of last year, according to the mortgage providers Halifax and Nationwide. Meanwhile, separate data from the Royal Institution of Chartered Surveyors showed that surveyors had become more upbeat.

While mortgage approvals remained below the pre-pandemic norm of 66,000 a month, “a further fall in mortgage rates in January means they will continue to recover,” according to Webb.

Sort Your Financial Life Out with Claer Barrett

Learn how to make smarter money decisions and supercharge your personal finances in this six-part newsletter series with the FT’s Claer Barrett. From saving and investing to property and pay rises, she’ll inspire you to get more confident with your money.

The BoE also reported that net borrowing of consumer credit by individuals fell in the same period, from £2.1bn in November to £1.2bn in December.

Economists have differing views on what is driving the credit trend. For Tomasz Wieladek, chief European economist at T Rowe Price, this reflects rising real wages “as higher household disposable income means consumers need to rely less on credit for their consumption”.

However, Thomas Pugh, economist at audit and tax consulting firm RSM UK, said the significant drop in consumer credit was in line with the fall in retail sales reported by the ONS earlier in the month, adding to evidence that the economy “slipped into recession at the end of the year”.

Bonus season – are you headed for a payout or a doughnut?

For the third year in a row, the Financial Times is asking readers to confidentially share their 2024 bonus expectations, and whether you intend to invest, save or spend the cash. Tell us via a short survey

Source: ft.com

Apache is functioning normally

January 31, 2024 by Brett Tams

Inside: Learn the roadmap to financial freedom with no money. Surpass debt, embrace millionaire habits, invest wisely & start a victorious journey to become financially independent!

Navigating the road to wealth can feel daunting, especially without a financial head start. But the journey to becoming a millionaire isn’t reserved for the lucky few with an inheritance at their heel.

It’s about strategy, perseverance, and making informed decisions.

Reaching the status of a millionaire is possible. I have done it and many other Money Bliss readers as well.

You have to change your mindset to make this happen. Becoming financially stable is of utmost importance.

Now, if you are serious about making seven figures in your net worth, then keep reading on how to do it.

Foundations of a Millionaire Strategy with No Money

Building a wealthy future from the ground up demands a strong and comprehensive financial plan. This isn’t something super fancy and you don’t need crazy knowledge.

You just have to start and be determined.

Step 1: The Essential First Steps Toward Financial Growth

Before plotting any course, assess your current circumstances candidly. Are you battling debts? Barely managing expenses? Or perhaps saving inconsistently? Acknowledging your starting point is critical.

A financial plan acts as your roadmap. It outlines not only your current standing but also sets the destination: your millionaire goal. This is not a figure plucked from thin air but rather a calculated estimate determined by your aspirations and timeframe.

Structure your plan to encompass these elements:

Income Assessment: Calculate your total annual income, be it from your primary job or any side gigs you maintain.
Expense Analysis: Track every expense. From the daily coffee to the monthly rent, understand where your money is going.
Debt Strategy: High-interest debts can cripple financial growth. Prioritize paying off these debts to alleviate financial pressure.
Savings Plan: Start with achievable goals. Perhaps saving $100 a month initially, then incrementally increasing as your earnings grow.
Investment Consideration: Every dollar saved should be working for you.

Ultimately, keep your plan documented and visible. Regular interaction with your strategy keeps the vision of financial growth at the forefront of your daily choices.

Step 2: Harness a Mindset Crafted for Success

Maintaining a positive mindset can significantly amplify your success with money, empowering you to manifest your financial ambitions with clarity and confidence.

This positivity helps to reframe financial obstacles as opportunities for growth. To cultivate this prosperous mindset:

Practice gratitude by acknowledging and appreciating what you already possess, which can create a sense of wealth beyond the monetary value.
Counteract negative thoughts about money by consciously redirecting them into positive money affirmations, reinforcing your belief in your financial acumen and capabilities.
Focus on your ultimate goals and align your behaviors accordingly.

Step 3: Starting Small: Saving with Limited Means

When funds are scarce, saving can seem impossible. However, even the most modest savings habits can blossom into significant wealth over time. The key is to start – no matter how small, and to remain consistent.

Implement these techniques to save effectively on a tight budget:

Automate Savings: Set up a direct deposit from your paycheck to a savings account.
Savings Challenges: Engage in one of my popular money saving challenges.
Save Raises and Bonuses: Save at least half of any raises, bonuses, or tax refunds you receive rather than increasing your spending.
Micro-Saving Apps: Consider using apps that round up your purchases to the nearest dollar and save the difference.

Saving is habitual. Even with a limited budget, adapting ways to make saving a consistent part of your financial behavior is crucial.

Start with a small percentage that won’t strain your daily living but will quietly accumulate in the background. These mini saving challenges are perfect!

Step 4: Handling Debt: Strategies for Minimizing Financial Burdens

Tackling debt is a pivotal stage on the road to financial freedom and accumulating wealth. Personally, this is exactly what happened to me. Once we paid off our debt, we were able to increase our net worth substantially.

Simply put… When debt is left unchecked, it can blossom into an insurmountable challenge, thwarting efforts to acquire wealth. The cash flow killer.

Consider these tactics to manage and minimize your debt:

Debt Audit: Begin by evaluating all your debts. Take note of balances, interest rates, and minimum payments. Understanding the total sum of your debts is essential for forming a repayment strategy.
Prioritize High-Interest Debts: High-interest debts such as credit cards can quickly grow beyond control. Prioritizing these debts for repayment can save you a significant amount in interest over time.
Debt Snowball vs. Avalanche: Choose the method that will keep you motivated and align with your financial goals.
Negotiate with Creditors: If you’re in financial hardship, reach out to your creditors to negotiate for lower interest rates or modified payment plans. Many creditors prefer to work out a payment plan rather than risk not being paid at all.
Avoid Accumulating New Debt: As you pay off existing debts, it’s crucial not to accrue new ones. Stick to your budget and avoid temptations that could lead to further debt.

Remember, every debt you free yourself from is one step closer to letting your money work for you, not against you.

Step 5: Identifying Skills That Pay: Turning Talents into Revenue

In the evolving economy, capitalizing on your skills can be a powerful way to generate additional revenue streams. The beauty of skill-based earning is that it can fit around a traditional job and can be scaled up or down as your situation changes.

Here are possible avenues to pursue:

Demand for Your Skills: Look at the market and find out if you can outsource your skills
Start Freelancing: Platforms like Upwork, Fiverr, and Freelancer can connect you with clients looking for your specific skillset. Begin with competitive pricing and build up your portfolio and rates as your experience grows.
Teach Others: If you’re knowledgeable in a particular area, consider creating an online course or conducting workshops. With platforms like Teachable or Udemy, you can reach a global audience.
Networking: Leverage social media, professional networking sites like LinkedIn, and community forums. This builds your professional presence and can lead to job opportunities.

Lastly, do not be afraid to ask for a pay raise. Thus, will help you fast-track your path to six figures.

Step 6: Side Hustles and Entrepreneurship: Growing Your Earnings

To build real wealth, especially with no initial capital, earning income from multiple streams can be a game-changer. Side hustles and entrepreneurship are about leveraging your time, talents, and sometimes minimal financial investments to grow your income outside of your primary job.

Almost every millionaire I know has a side hustle or business that helped them to get to that point.

Here’s how you can expand your earnings with side hustles and entrepreneurship:

Make money online: The fastest growing area is knowing how to make money online. Even seemingly mundane skills can be lucrative.
Choose the Right Side Hustle: You can choose to make money or chill and watch TV. Pick on the popular side hustles to get started today.
Start Small Business Ventures: Consider creating a small business. It could start as simple as lawn care services, homemade goods, or consulting. Validate your business idea with minimal investment before scaling up.

As financial expert and entrepreneur Ramit Sethi states, “There’s a limit to how much you can save, but there’s no limit to how much you can earn.”

By actively growing your earnings and establishing additional income streams, you accelerate your trajectory toward millionaire status.

Step 7: Investment 101: Basics for the Beginner Investor

Investing is the escalator to wealth, turning your savings into passive income generators.

For beginners, the world of investing can seem labyrinthine, but with foundational knowledge and strategic baby steps, you can begin to navigate it confidently.

Don’t be afraid of the stock market as you are giving up way too much money! This was the stupid mistake I made in my 30s. Now, my investment portfolio is the primary way I am growing my wealth today.

Here’s what you need to know to get started with investing:

Start with a Retirement Account: If your employer offers a retirement plan, like a 401(k), especially with matching contributions, take full advantage of it. This is often a beginner’s first, and potentially most profitable, investment.
Low-Cost Index Funds: As a beginner, it’s wise to invest in low-cost index funds, which are designed to mimic the performance of a particular market index. They are diversified and typically have lower fees.
Automatic Investing: Set up automatic transfers to your investment account to facilitate regular contributions without having to actively think about it. Don’t forget to select which fund to invest in.
Educate Yourself: Take advantage of online resources, books, and courses to understand the basics of stocks, bonds, and other investment vehicles. This is what I did – invest in my stock market knowledge and it has paid off big time!
Understand the Rule of 72: A simple formula to estimate the doubling time of an investment. For example, at a 7% average annual return, your money could potentially double every roughly 10 years.
Understand Risk vs. Reward: All investments carry some level of risk. Typically, higher risk could mean higher potential returns, but also greater potential losses. Assess your risk tolerance before investing and use those stop losses!

Investing isn’t a sprint; it’s a marathon with compound interest serving as the tailwind to push you forward over time. Learn how to invest in stocks for beginners.

Step 8: Retirement Accounts: Why Maxing Out Early Matters

By maximizing contributions to retirement accounts, you not only safeguard your golden years but also capitalize on tax-advantaged growth, which can be substantial over time.

Just because you are in your 20s or 30s, don’t say I’ll invest later. You are missing the boat.

Here’s why it’s beneficial to start maxing out your retirement accounts as soon as possible:

Compounding Interest: The earlier you start, the more you benefit from compounding interest.
Tax Benefits: Contributions to retirement accounts like 401(k)s and traditional IRAs are made each year, but they come with limits and potential tax-deferred (IRA) or tax-free (Roth IRA) accounts.
Employer Match: Many employers offer a match on 401(k) contributions up to a certain percentage. Failing to contribute at least enough to get the full match is akin to leaving free money on the table.
Higher Contribution Limits: The earlier you start maxing out, the less you have to play catch-up later. The IRS sets annual contribution limits, and consistently hitting those maximums can mean a considerable difference in your retirement savings over time.

By comprehensively engaging with your retirement accounts from an early age, you start an assured path towards the millionaire echelon.

Yes, it is possible to have multiple Roth IRA accounts.

Step 9: Adopting the Growth Attitude: Learning from Millionaire Mentors

The difference between those who accumulate wealth and those who don’t can often be traced back to mindset and mentorship. Adopting a growth attitude and learning from successful individuals can accelerate your path to prosperity.

Millionaires, with their experience and results-driven approaches, often provide valuable insights into effective wealth-building strategies.

Here’s how tapping into the wisdom of millionaire mentors can benefit your financial growth:

Learning from Their Experiences: Millionaires can share their triumphs and tribulations, offering you a roadmap that highlights what to do and what pitfalls to avoid. Cultivate these millionaire habits in your life.
Networking Opportunities: Millionaire mentors often have expansive networks. By building a relationship with a mentor, you may be introduced to key connections that can lead to lucrative opportunities.
Mindset Shift: Interacting with successful individuals can shift your perspective from a fixed mindset to one that embraces challenges, persists in the face of setbacks, sees the effort as the path to mastery, and learns from criticism.
Innovative Thinking: Mentors can inspire innovative approaches to income generation, investment, and savings. They can encourage out-of-the-box thinking that may lead to financial breakthroughs.
Emulating Success: By observing the habits and tactics of millionaires, you can emulate strategies that have proven successful while avoiding practices that may lead to failure. Start these billionaire morning routines to help you.

By adopting a growth attitude and learning from the insights and experiences of millionaire mentors, you sharpen your financial acumen and enhance your ability to create and capitalize on wealth-building opportunities.

Step 10: Community Counts: Surround Yourself with Success

The people you surround yourself with can significantly influence your thoughts, actions, and ultimately, your success. By intentionally building a community of hard-working, success-oriented individuals, you can foster an environment that promotes wealth accumulation.

Here is why it’s crucial to immerse yourself in communities that align with your aspirations:

Shared Success Mindset: In a like-minded success-oriented community, you’ll find individuals who have goals similar to yours and an attitude that is conducive to financial growth. This collective mindset can reinforce your own ambitions.
Peer Learning: Being a part of a community allows for collaborative learning. Exchange insights, experiences, and tactics with peers who are also on a path of financial growth. I love my masterminds!
Accountability: Just as with individual mentors, a community can keep you accountable. Regular interactions with people who take financial success seriously can encourage you to do the same.
Cross-Pollination of Ideas: Varied perspectives in a group can lead to a cross-pollination of ideas, sparking creativity and innovation in your own wealth-building strategies.
Increased Confidence: As you witness others achieving success, it instills a belief that you can do the same. This confidence can push you to take calculated risks that lead to greater rewards.

This adage stresses the importance of being selective with the company you keep, as their attributes frequently rub off on you, influencing your path to becoming a self-made millionaire. Likely you want friends who are millionaires or striving to be, too.

Step 11: Steer Clear of Debt: Remaining Unshackled as You Ascent

The gravitational pull of debt can be a formidable force, impeding one’s ascent toward the zenith of financial independence. But, you can overcome this by using these debt free living habits.

Here are strategies to remain unshackled by debt:

Budget Religiously: A budget constrains overspending and reduces the temptation to rely on credit.
Build an Emergency Fund: A substantial emergency fund can cover unforeseen expenses, diminishing the need to fall back on credit cards or loans that could exacerbate your financial situation.
Spend Less Than You Make: This may sound simple, but this helps you to live within your means and avoid going into debt.
Discern Needs from Wants: Be meticulous in distinguishing true needs from mere wants.

Ultimately, your ability to evade debt not only safeguards your financial stability but also amplifies your capability to invest and save, propelling you firmly on the trajectory toward millionaire status.

Step 12: The Lifestyle Inflation Trap: Keeping Expenses in Check

Success and salary hikes can often lead to lifestyle inflation, a phenomenon where spending increases as income rises, negating the potential for savings and investments. Keeping lifestyle inflation at bay is pivotal to ensuring that growing income translates into growing wealth.

Here’s how you can avoid the lifestyle inflation trap and keep expenses in check:

Stick to Your Budget: Even as your income grows, maintain the budget that facilitates your savings habits.
Identify Trigger Points: Be aware of what prompts you to spend more. Sometimes, seeing others upgrade their lifestyle can trigger the same desire. Stay focused on your financial goals rather than external influences.
Automate Savings Increases: When you receive a raise or bonus, immediately update your automatic transfers to increase the amount going into your savings or investment accounts.
Value Experiences Over Possessions: Studies have shown that experiences bring more lasting happiness than material goods. Opt for a modest increase in experiences rather than expensive goods as your income grows.
Embrace Minimalism: Adhering to minimalist principles can reduce the urge to accumulate non-essential items, keeping spending down and savings rates up.

Avoiding lifestyle inflation doesn’t mean living as frugally as possible regardless of how much you earn. It’s about finding a balance that allows for a comfortable yet modest lifestyle, wherein you can enjoy the fruits of your labor without compromising your long-term wealth goals.

Billionaire investor Warren Buffett exemplifies this principle by still living in the house he bought in 1958 for $31,500 and driving a reasonably priced car. Buffett’s lifestyle choices display an astute awareness of the perils of unnecessary spending and emphasize the importance of consistency in financial discipline.

Step 13: Compounding: The Wonder that Builds Big Balances Over Time

Compounding interest is a powerful tool that has the potential to turn modest savings into vast sums over time.

The principle behind compounding is straightforward: the returns you earn on your investments generate their own returns in the next cycle, leading to exponential growth given enough time.

Here’s how the wonder of compounding works to build big balances:

Start Early: The magic of compounding is maximized by time. The sooner you start investing, the more cycles of compounding your money can go through, and the larger your balance can grow.
Reinvest Your Returns: To truly harness the power of compounding, reinvest the interest, dividends, and any capital gains you receive, rather than spending them. This increases your investment balance, which in turn means more significant potential returns in the next cycle.
Regular Contributions: Make regular contributions to your savings and investments. Consistent additional deposits can significantly amplify the effects of compounding over the long term.

Step 14: Procrastination and Perils: Why Immediate Action is Crucial

Procrastination is often the thief of time and opportunity, especially when it comes to financial decisions. Postponing essential actions like saving, investing, or paying down debt can have compounding negative effects, making it harder to achieve financial goals.

Understand the perils of procrastination and the importance of immediate action:

The Cost of Waiting: In the realm of investment, the longer you wait to begin, the more you miss out on the potential compounding returns. Delayed action can mean the difference between a comfortable retirement and a financially insecure one.
Opportunity Loss: Procrastination can lead you to miss out on time-bound opportunities, such as market dips that are ideal for purchasing investments at lower prices or missing the deadline for a tax-advantaged account contribution.
Paying More on Debt: By putting off debt repayment, you accrue more interest, which only increases the total amount you’ll eventually have to pay. Acting quickly to pay off high-interest debt saves money in the long run.
Increased Stress: Delaying important financial actions can lead to an accumulation of stress and anxiety, which can, in turn, impair your ability to make sound financial decisions.
Potential for Rash Decisions: When you constantly procrastinate, you might eventually rush into decisions without adequate research or consideration, leading to poor financial outcomes.

Recognize this type of behavior and set weekly money meetings with yourself to help you move forward – one task at a time. Grab an accountability partner too!

Step 15: Long-Term Vision: Setting Up For Sizeable End Gains

The journey to becoming a millionaire is often a marathon, not a sprint.

Nurturing a long-term vision for your financial future is essential in guiding your daily decisions and motivating you to stay the course.

To ensure sizeable end gains, you need to establish and maintain a future-oriented mindset:

Set Long-Term Financial Goals: Establish clear, achievable long-term financial goals that align with your desired = future. Whether it’s attaining a specific net worth, owning property outright, or securing a comfortable retirement, these goals should inspire your action plan.
Strategic Planning: Develop a comprehensive financial plan that includes savings, investments, retirement accounts, and estate planning. This plan should act as a living document that you can adjust as your circumstances and goals evolve.
Patience is a Virtue: Recognize that wealth typically accrues over time, and not without fluctuation. Stay patient and avoid knee-jerk reactions to short-term market swings or temporary setbacks.
Regular Investments: Commit to making regular investments, even in small amounts. Over time, consistent contributions can result in substantial wealth through compounding interest.

It’s about creating financial disciplines that compound over time, ensuring that with each day, month, and year, you’re progressively building towards a considerable nest egg.

FAQ: Climbing the Financial Ladder Without a Silver Spoon

Getting rich with no money might seem like a paradox, but it’s a trajectory that many self-made millionaires have pursued successfully. The blueprint involves a combination of mindset shifts, disciplined financial habits, and strategic action.

You have to take proactive steps to increase wealth even when starting from zero.

Starting from nothing and achieving millionaire status requires a multifaceted strategy, encompassing personal development, financial planning, and an entrepreneurial approach to income generation.

Wealth creation is a journey, and starting from zero means that progress may be slow initially.

However, by adopting these steps and maintaining a disciplined and proactive approach, you incrementally increase your chances of accumulating significant wealth.

Ready to Become a Millionaire with Nothing?

Are you ready to become a millionaire with nothing but your ambition, intellect, and unwavering resolve? If your answer is a resounding yes, then it’s time to take the first step.

With every small victory and learned lesson, you inch closer to your ultimate goal.

Your journey starts with dedication, a commitment to yourself that from this day forward, you will work relentlessly toward the life you envision.

Wealth is not just about the money you accumulate but also the knowledge, experience, and relationships you develop along the way. Wealth creation is often not a straight line but a series of strategic moves and consistent behaviors that, collectively, lead to financial success.

Remember, your current financial position is just a starting point – with the right mindset and actions, significant financial growth is within the realm of possibility.

Your next step is working towards becoming financially independent.

Did the post resonate with you?

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.

Source: moneybliss.org

Apache is functioning normally

January 28, 2024 by Brett Tams

If you’re in search of a low-risk way to grow your money, a liquid certificate of deposit (CD) might be worth a closer look. A liquid CD gives you a fixed, guaranteed rate of interest for a specific term, but unlike standard CDs, you don’t pay a penalty if you withdraw the funds before the maturity date.

Granted, the returns you earn on a liquid CD may not compete with stock market investments, but knowing that your money is earning interest and likely won’t incur any losses can be powerful benefits.
Here, you’ll learn more about liquid CDs, including:

• What a liquid CD is

• How to withdraw money from a liquid CD

• The pros and cons of liquid CDs

• Alternatives to liquid CDs.

What Is a Liquid Certificate of Deposit?

Before you think about investing in a CD, here’s a look at definitions:

• A certificate of deposit, or CD, is a savings vehicle that usually gives you a bit of interest with virtually no risk, provided you keep the money in place for a certain term. If, however, you withdraw funds before the CD matures (or reaches the end of its term), you are usually penalized. You will likely lose some or all of the interest earned and perhaps even a bit of the principal. In other words, are certificates of deposit liquid? Usually not.

• A liquid certificate of deposit, on the other hand, gives you flexibility. It allows the account holder to withdraw money from their account prior to the maturity date without incurring penalties. This means you can access funds in the CD should you need them without penalty. However, the rates for liquid CDs tend to be lower than other kinds of CDs.

💡 Quick Tip: Typically, checking accounts don’t earn interest. However, some accounts do, and online banks are more likely than brick-and-mortar banks to offer you the best rates.

Understanding a Liquid CD

You may be wondering, “What are liquid assets?” In the realm of finance, the concept of “liquid” means that an asset can quickly be converted to cash. A liquid CD is a time-bound deposit account where you can earn interest for a specific period of time. Compared to traditional CD’s however, liquid CDs will not charge you early withdrawal penalties. This means you can easily liquidate (turn into cash) your CD without taking a hit in terms of its value.

As noted above, there’s a “but” to this proposition, which you may hear referred to as no-penalty CDs: Liquid CDs typically pay less than traditional CDs. Depending on which financial institution you go to, these products can offer various terms, either as little as a few months or up to several years or longer. Your fixed interest rate will vary according to the length of the term you’ve chosen. Typically, the longer you hold your money in the liquid CD, the higher the rate of return.

What can be a big plus about CD rates is that they are locked in during the full term. This means even if interest rates decrease, your rate would not change. Some financial institutions may require a minimum deposit for these CDs, and they can be significantly higher than traditional CDs; some are at the $10,000 and up level. What’s more, the minimum deposit may go up if you are seeking a higher interest rate, while others don’t have a minimum deposit requirement at all.

How Do You Withdraw Money From a Liquid CD?

If you have decided that you need to withdraw from your liquid CD, here’s what usually happens:

• Check with your bank about how long it will take to process a withdrawal and whether you need to withdraw a certain percentage at a time. (Some banks may require you to close the account entirely.)

• When ready, notify your bank of your withdrawal.

• You will likely have to wait about a week after opening the liquid CD before you can start withdrawing.

• Wait for your funds. Withdrawal is likely not as quick as withdrawing funds from a checking or savings account; your financial institution might require anywhere from a week to a month to process the transaction.

Recommended: What Happens If a Direct Deposit Goes to a Closed Account?

Liquid CD: Real World Example

Once you have decided a no-penalty CD is right for you, you will need to go to a bank or credit union that offers this account. Once you’ve opened an account, you have to fund it.

How it grows will depend on the principal, your APY (annual percentage yield), and how often the CD compounds the interest, which could be, say, daily or monthly.

• If you invested $10,000 in a liquid CD with a three-year at a rate of 5.30%, at the end of the three-year period with interest compounded monthly, you will have a total balance of about $11,719.28.

Get up to $300 when you bank with SoFi.

Open a SoFi Checking and Savings Account with direct deposit and get up to a $300 cash bonus. Plus, get up to 4.60% APY on your cash!

Pros of a Liquid CD

When evaluating liquid CDs, it’s worthwhile to review the benefits of these accounts. Some of the key upsides are:

• Liquidity. You can access and withdraw your funds prior to the term’s end. Perhaps you’re having an emergency that requires cash, or you decide to move around your money to better meet your financial goals. It’s possible!

• No penalties. If you dip into the account before it matures, you won’t be assessed a fee.

• Security. Liquid CDs are safe investments. These accounts are federally insured up to $250,000 per depositor, per account ownership category, per insured institution. You’ll know your money is protected when you open a liquid CD with a bank or credit union. Even in the very rare situation of a bank failure, you’re covered as noted.

• Guaranteed returns. When you start a liquid CD account, you usually know the interest rate upfront. It may not be stratospheric, but it’s a sure thing.

Cons of a Liquid CD

Now that we’ve explored the good things about a liquid CD, we need to give equal time to the potential downsides:

• Lower rate of return. The interest rates are significantly lower compared to certificate of deposit rates.

• Withdrawal rules. Yes, these accounts are more accessible, but after your deposit has been in place for a week, your withdrawal guidelines may be quite specific. For instance, you may have to remove all your funds if you want to make a withdrawal, or the amount might be limited to a certain percentage that doesn’t suit your needs. Check before starting a liquid CD investment.

• Tax implications. Earnings on your liquid CD will be taxed at your federal rate, which is something to keep in mind as that will take your return down a notch.

Recommended: How to Automate Your Personal Finances

Alternatives to a Liquid CD

If the idea of a liquid CD doesn’t sound like an appealing low-risk investment option, there are alternatives to also consider.

Traditional CDs

Traditional certificates of deposit require you to stow your money away for a certain period of time. In exchange, you receive a return at the end of that period. The catch is, you are not able to withdraw your funds during this holding period. If you have a financial emergency, for example, and need the money from your CD, you will receive penalties for withdrawing your cash before the period of maturity.

However, this might be a gamble you are willing to take, especially if you have a nice, healthy emergency fund set aside. You’ll earn a better rate of return than with a liquid CD.

Laddering

CD laddering usually involves opening CDs of different term lengths. This strategy allows you to invest long-term CDs which provide higher rates of return, while having the ability to access your funds through a shorter-term CD maturing.

Money Market Account

Another CD alternative is a money market account, which is similar to a savings account with some added benefits. Money market accounts typically require minimum balances and offer rates comparable to savings accounts, which can change over time. While the rates may be lower than a CD, money market accounts typically allow you to withdraw and transfer your money six times per month or more.

Emergency Fund

An emergency fund, or a rainy-day fund, is a savings account that should only be used in times of financial emergencies or unexpected expenses. Depending on your financial position, you can have an emergency fund in a regular savings account, money market account, CD, or liquid CD. It depends on how much you plan to access your emergency fund and how much interest you want to earn in the account.

High-Yield Savings Account

A high-yield savings account can offer a competitive rate of interest, depending on the financial institution offering it (online banks tend to pay more than traditional ones). And you’ll have more liquidity than a CD because you can deposit and withdraw from the account more frequently, though the specifics may vary with each bank. If you want easy access to your funds plus interest, a high-yield bank account may be a good option.

The Takeaway

Liquid CDs are a financial product that offers the safety and guaranteed return of a traditional CD with the bonus of not being penalized if you make an early withdrawal. For those who are comfortable locking their money into a CD but worry an emergency or other need might pop up, this accessibility can be very attractive. Worth noting: Expect lower interest rates from a liquid CD than a standard one. Alternatives to a liquid CD can include a high-yield savings account.

Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.

Better banking is here with up to 4.60% APY on SoFi Checking and Savings.

FAQ

Are CDs liquid investments?

Traditional CDs are not liquid investments. Funds held in a CD cannot be accessed until the account term is reached. If you need to withdraw money from your CD prior to its maturity date, you will have to pay a penalty. A liquid CD, however, offers flexibility to withdraw money from your account prior to its term date without the usual fees.

What is a non-penalty CD?

A non-penalty CD, also known as a liquid CD, is a time deposit that offers interest on your money. However, the rate is usually somewhat lower than the rate for a typical CD (the kind with penalties). The longer the term you choose for your liquid CD, the more you usually can earn.

How much is the penalty for early withdrawal from a CD?

Each financial institution has its own way of calculating this, but it usually involves losing some of all of the interest you have accrued. If you have a two-year traditional CD and withdraw funds early, the fee could vary considerably; a recent search found anywhere from two months’ to a year’s’ worth of interest. If you have a liquid or no-penalty CD, you will of course avoid these fees.

Photo credit: iStock/champc

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.

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 deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government 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, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

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.

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.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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Source: sofi.com

Apache is functioning normally

January 28, 2024 by Brett Tams

Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions. In this episode:

Get answers to common questions that will allow you to maximize your credit card rewards points and avoid common point planning pitfalls with our Nerdy expert tips.

How can you travel more while spending less? How could changes in airline loyalty programs affect your travel plans? What are the benefits of co-branded airline or hotel credit cards versus flexible rewards cards? NerdWallet’s Sean Pyles and Erin Hurd dive deep into credit card rewards points, addressing a range of topics that will resonate with anyone eager to maximize their credit card points and travel perks. They discuss recent changes in airline loyalty programs, including Delta and Alaska Airlines, and explore the advantages and drawbacks of co-branded airline or hotel credit cards and the benefits of using flexible rewards cards.

They also present strategies for maximizing credit card sign-up bonuses while avoiding common mistakes that can lead to fewer rewards, and offer tips for how you can track and manage credit card points and perks. Sean and Erin also explain the pitfalls of carrying a balance on travel credit cards, the implications of credit card fees and surcharges at local stores, potential industry changes, such as interest rates and fee structures, and the potential impact of the Credit Card Competition Act on rewards programs.

Check out this episode on your favorite podcast platform, including:

NerdWallet stories related to this episode:

Episode transcript

This transcript was generated from podcast audio by an AI tool.

Sean Pyles:

Airline points, restaurant points, retail points, rental car points, hotel points, points, points, points, points, points. Wrap them all up in credit cards and sometimes it can be head spinning.

Erin Hurd:

My guidance is generally pretty similar for most people, even if they have pretty different travel goals, and that all really goes back to the idea of just earning flexible points. If you have a stash of flexible points that aren’t locked into any one travel brand, you have a lot of options.

Sean Pyles:

Welcome to NerdWallet’s Smart Money Podcast. I’m Sean Pyles.

Erin Hurd:

And I’m Erin Hurd.

Sean Pyles:

This is the final episode of our nerdy deep dive into your money in 2024. Erin, we’re almost a month in, so how is your 2024 going so far?

Erin Hurd:

So far, so good. I can’t believe we’re already into 2024, but all is going well.

Sean Pyles:

Love to hear it.

Erin Hurd:

How about you, Sean?

Sean Pyles:

It’s been alright so far. I’m just glad the days are getting longer at this point, however slowly. So, Erin, we’ve brought you back onto the show because you are a nerdy points pro. How did you come to be so interested in credit card points programs and do you have a degree in complex mathematical equations? Because sometimes it seems like you need one to figure out how to use all of these.

Erin Hurd:

That sounds like it could be true, but actually it’s quite the opposite. I majored in English and math was always my least favorite subject. I’ve always been a deal seeker. I’m always looking for sales, I’m finding coupons, I’m figuring out how to get more, but how to pay less for it. So my husband and I have always loved to travel and I started dabbling in points and miles many years ago to help defray our travel costs so that we could travel more. But I really fell down the rabbit hole with the points and miles when we grew our family, and now we needed four seats on the airplane and in some circumstances, we need two hotel rooms for our family of four. So that’s when I really got serious about earning enough points and miles so that our family could travel more than just to the local campground, because that’s all that I would be willing to pay for.

Sean Pyles:

Yeah. And when you’re wrangling kids, I’m sure you don’t want to spend time doing math, but the good news is nobody needs a math degree because all they have to do is go to the NerdWallet site, poke around with our very handy calculators, and all will be revealed. But let’s give everyone a rundown of things they might want to think about when managing their credit card points. Now, would you say that the start of a new year is a good time for listeners to take stock of where they are with their points programs? Or is that something they should be monitoring all year round?

Erin Hurd:

Great question. Well, in a perfect world, ideally you do want to be giving your points some attention more than once a year, especially if you’re trying to save them up to take a big trip, because the amount of points that you’ll need for that trip can fluctuate. Often it requires more than you think that you’ll need and it can take time to earn those points and then to find great redemptions for them. But don’t fear, it’s never too late, so the new year is a fantastic time to check in if you haven’t been already.

Sean Pyles:

Well, we are going to give everyone a head start by taking a look at what we can expect from 2024 in Point Land. But before we get started, a reminder that we always want to hear what you think, too, listeners. To share your ideas, questions, concerns around credit card points, or anything else, leave us a voicemail or text the Nerd hotline at (901) 730-6373. That’s (901) 730-NERD, or email a voice memo to [email protected]. Stay with us. We’re back in a moment with the future year in credit card points.

So Erin, let’s start with a look back at last year in Point Land and see if there are some lessons that we can learn from 2023 to take into this year. And before we get too deep into the conversation, I want to flag that we are going to mention some companies that are NerdWallet partners, but that does not influence the way that we talk about them. So, Erin, in this conversation, we’re mostly going to focus on maximizing credit card points, but I want to briefly touch on the fact that at least two of the major airlines, Delta and Alaska, changed their point reward systems toward the end of last year. What did that mean for flyers and were there any kind of bigger messages about point systems that came out of that?

Erin Hurd:

Yeah, those were big headlines in the travel world. Now, they were pretty different in scope. Delta changed the requirements to earn elite status in future years, this won’t actually take effect just yet, but they also put limits on some of the benefits that credit card holders can use, like airport lounge access.

Now Alaska, on the other hand, made big changes to its award chart and an award chart is what determines the number of miles you’ll need to pay for a ticket. But these are both examples of a bigger takeaway that we see over and over again, and that is that you should never have all your proverbial eggs or points in one basket. So what I mean by that is that even if you fly a certain airline often because that’s what serves your home airport, having only a credit card that earns points or miles for that one brand really limits your options. The truth is that, unfortunately, travel loyalty programs change or get devalued relatively often and sometimes with little to no notice. So that means if you’ve racked up a nice chunk of say, Alaska miles for an upcoming trip, but they suddenly change their award chart, as they just did, and decide that the flight you want to book will now cost double the miles, you’re pretty hamstrung if all you’ve got is a chunk of Alaska miles.

Sean Pyles:

Yeah, having multiple different cards from different brands is a way of having credit card dollar cost averaging in a way, where you’re spreading your risk across different kinds of products. So, that is one way to offset the ups and downs of what these companies are doing. But I can see these changes making some folks wary of using these cards that are co-branded with an airline or hotel. Do you still think they’re worthwhile given recent changes?

Erin Hurd:

I do. For travelers, carrying a co-branded airline or hotel credit card, it can be really beneficial for certain perks. Some of the airline cards, for example, will give you free checked bags for you and sometimes, depending on the card, up to eight traveling companions every time you fly. So, that can add up to a huge value if you’re flying relatively often, even if you’re flying a couple times a year and you’re checking a bag, that can make it worth it. And especially because you’ll earn, generally, a welcome bonus when you open up the card.

But I advise leaning more on what we call flexible rewards credit cards, and they can give you a lot more options for your travel, plus they often earn more rewards on everyday purchases.

Sean Pyles:

Can you tell us what you mean by flexible points? How do they work and how do you earn them?

Erin Hurd:

Oh, sure. As the term suggests, they are flexible. So, there’s a number of credit cards that have their own travel points. Instead of earning Delta miles or Alaska miles or Marriott points, for example, there are several Chase cards that earn points called Ultimate Rewards. There are many different American Express cards that earn something called Membership Rewards. There’s City Thank You points, ect. And the beauty of these flexible points is that they can be used to book all kinds of travel, not just a Delta flight or not just an Alaska flight.

So generally, these credit card issuers have their own travel portal and you can book your travel there and pay directly with your points and you don’t have to involve any cash. And many of these programs also allow you to transfer those points to certain airline and hotel travel partners, usually at a one-to-one ratio, which is great because often you can get more value from your points when you transfer them to the airline or the hotel and book directly. But really, the biggest benefit is just having so much more flexibility. So instead of being locked into a Delta flight, like you probably would be if you only had a Delta miles earning credit card, flexible points just give you lots of options.

Sean Pyles:

Okay. Well let’s get to cards. First, anything from last year stand out to you? Any program changes you saw that were worth paying attention to or new ways to use them?

Erin Hurd:

Yeah. Well, the good news is that we’re still seeing some pretty juicy bonuses offered for new card holders who sign up for a card and meet certain spending requirements in the first few months. And we’re excited that those seem to be sticking around. Years ago, it used to be that a credit card welcome bonus of around 30,000 or 40,000 points was really generous, but over time those numbers have crept up and up, and it became not uncommon to see bonuses of 60,000 points or 80,000 points or even 100,000 points offered to new cardholders.

Now, that trend continued throughout COVID, even when people weren’t traveling as much, the banks kept offering big bonuses to keep travel credit cards interesting. And we’ve been wondering, all this time, if we’d start to see the bonuses start to shrink back down as people return to travel, as inflation and recession fears crept in. But the good news is we have not seen that happen so far. Right now, there are several six figure welcome bonuses out there for various travel credit cards and welcome bonuses are an important part of the travel credit card strategy for a lot of people.

Now, I don’t open credit cards just for the welcome bonus. I don’t advise doing that, but I also know that I’ll earn more rewards from that bonus than I probably will from a year or more of regular spending on that card. So it’s definitely a factor.

Sean Pyles:

Yeah. And these signup bonuses are often folks’ best chance at getting a huge amount of points since points can take a long time to accrue through daily purchases alone. And we’ve also seen new ways to use rewards, right? What’s the latest on that front?

Erin Hurd:

As far as new ways to use rewards, we’ve seen a steady stream of options evolving to use your points to pay for merchandise at various stores. At Amazon, for example, when you check out, you may have noticed you have the option to pay using several different kinds of points, credit card points. It makes it really easy and it can feel like you’re getting stuff for free if you’re using points instead of actually charging your card or paying cash. But really be careful because the downside is that you’re often getting poor value for your points when you use them this way. You’re paying for convenience and they’re betting on people not really understanding or questioning the value of the points.

So for example, if you use Chase Ultimate Rewards at Amazon to check out, they’re worth 0.8 cents each, but those same points can be worth up to 1.5 cents each when you use them to book travel through Chase, depending on which card you have, or often even more than 1.5 cents each if you transfer them to travel partners.

Sean Pyles:

Wow, that breakdown is really eye opening. I’ve seen that at Amazon checkout and I’ve been a little tempted to use my points in that context, but after that, I definitely won’t be doing so. So, thank you for that. So Erin, I think one of the most common questions people have is how to know which card and point program is not only best in class, but best for them and their specific situation. So, if you’re looking to maximize points, how do you figure out which card to get in the first place?

Erin Hurd:

Yeah, it’s a great question and there are so many options, and I know it can be really overwhelming for people who aren’t immersed in credit cards all day long like we are here at NerdWallet. And it may seem like there are many different factors, maybe you think it’s going to be different if you want to use points for travel, which airlines are most convenient for you? What style of travel do you enjoy? What kind of trips are you planning for? But really my guidance is generally pretty similar for most people, even if they have pretty different travel goals. And that all really goes back to the idea of just earning flexible points. If you have a stash of flexible points that aren’t locked into any one travel brand, you have a lot of options.

So I also encourage people who really want to get the most from their points to not get scared off by credit card annual fees. I know it can seem silly to pay a fee just to have a card, I hear resistance from people, and I get it, but the rewards and the perks that you get from the cards that charge annual fees often far outweigh the fee itself. In a lot of cases, you get what you pay for, and yes, there are lots of excellent no-fee cards out there, but if you really want to up your points game and take it to the next level, it’s really worth considering the more premium cards that do charge a fee.

Sean Pyles:

Yeah, I, for a long time, was really opposed to annual fees on credit cards because I just didn’t want to pay for access to a credit card and the fee-free option seemed to be sufficient for me. But I recently actually acquired a travel credit card that does have an annual fee because I looked at all of the perks that it was going to offer me and then compared that to how much the card costs on an annual basis. And the perks, by far, outweighed the cost. So you’re really getting something that’s worth more than you’re paying an annual fee if you make it worth it. You do have to do a bit of work to make sure you’re taking advantage of all of the benefits that these cards offer you.

Erin Hurd:

That’s right.

Sean Pyles:

So Erin, since you are deep in the points world, I would love to hear how you have approached this thought process in the past. Are you the type to be selective with cards in your wallet, or do you have a small collection of cards at your disposal?

Erin Hurd:

Well, both. So personally, I am selective, but I have also collected a pretty large portfolio of cards over time. Our family does travel a lot, and so we make pretty full use of the credits and the perks that the cards give us, but I also reevaluate each and every year to make sure every card still makes sense for me and for our family. And I really recommend that people go slowly and have a strategy. It’s really easy to get excited by the big welcome bonuses and people can be tempted to open lots of cards all at once, but please just slow down. Be aware that each credit card issuer has their own set of guardrails. They won’t extend excessive amounts of credit to any one person, and they want to make sure that you’re going to be a good long-term customer.

One issuer, for example, won’t approve you for a new credit card if you’ve opened more than five cards across any card issuer in the past 24 months. So I really like to hammer home that this is a long-term game and it pays to have a strategy. Don’t just go opening cards willy-nilly without a plan.

Sean Pyles:

And then with the cards that you use, how do you keep track of the points and perks that you have and the fees associated with them? Do you have a spreadsheet? Are you using a notebook? What’s your process for that?

Erin Hurd:

Yeah, I have a simple spreadsheet. As a credit cards Nerd, I’m also pretty engrossed in it all day long. NerdWallet has a lot of resources to keep everyone up to date, we cover all the news. So you can always check NerdWallet, but I recommend just a simple spreadsheet, taking note of what cards you have, when you opened it, what signup bonus you earned when, and then just what categories that bonus is on.

So another tip is to make sure you can meet the minimum spending requirements when you do open a new credit card. In order to earn the bonus, you’ll typically need to spend anywhere between $1,000 and $5,000 or even more on that card in the first three to six months. Make sure you have a plan to meet those spending requirements without spending any more money than you intend to or would otherwise.

Sean Pyles:

Yeah, and one big thing to watch out for is bonus categories. You can look for specific spending areas, say travel or groceries or gas, and get more points for those than for other purchases. Walk us through how to make sure we’re using each card in the most efficient way to rack up those points and rewards.

Erin Hurd:

Yeah, that’s a great point. And honestly, that’s another reason why many brand-specific cards, like a Delta card, probably won’t be your best bet because they tend to offer only 1x rewards on most everyday spending categories, except purchases on their brand. So if you really want to ramp up your points earning, don’t just blindly use one card for every purchase. I like carrying a few cards that can work together to earn the most rewards across many different categories. So you could use one card for groceries, but have a different card for restaurants.

Now, the good news is many of the major credit card issuers offer several cards that have synergy. They all earn the same bucket of flexible points for you, but one card is better for some categories and another is better for different kinds of purchases. Now, in the show notes, we’ll include our articles about some three-card combos you can have that can really help you ramp up your rewards.

But I know there’s a lot of people out there who don’t want to futz with having a lot of cards, and that is completely fine, but I would ask you to at least consider two cards. That way, if the largest spending in your budget is on grocery stores, say, you could choose a card that earns good bonus rewards at grocery stores, and then you could use another card that earns a flat 2% on all other purchases, and you’ll be good to go.

Sean Pyles:

When you’re thinking of which card to use or which card to take out, it really helps to know yourself and where you’re spending the most amount of money. So the card is helping you earn points on those categories that you’re spending on.

Erin Hurd:

That’s right.

Sean Pyles:

So Erin, what are some common mistakes that people make when trying to maximize their points? Can you run down a few of those for us?

Erin Hurd:

Absolutely. I think one of the problems I see a lot are that people don’t really understand the value of their points. And please do not feel badly if this is you, because it is a pretty complex scenario. Not all points are created equal.

The good news is NerdWallet has a full breakdown of baseline values for your points, and it shows you how you should expect to redeem them. Consult that guide before you redeem your points and it’ll help give you a gut check to see, is this a good use of my points or is this a poor value? I think it helps to think of points like a currency, right? So there are many different kinds of points and they all do have some kind of value, and that value is equivalent to an amount of money. And once you start thinking of them like a currency, and not just something that you get for free, you’ll be apt to spend them more wisely.

Sean Pyles:

And we should also mention that carrying a balance on a credit card that offers points, especially travel credit cards, can be a really costly mistake. Credit card interest rates are really high right now, and paying interest on your balance can negate any benefit that you get from the points that you earn.

Erin Hurd:

Yes, that is the number one rule in this game. The interest that you’ll pay on balances that aren’t paid in full every month will far outweigh the rewards that you’ll earn. Now, if you need a breather on interest, there are many cards on the market that offer a 0% intro APR period, and they also earn rewards. Another reminder is that it also rarely makes sense to pay more in order to use your credit cards. Like sometimes at local stores or restaurants, you may have to pay a surcharge in order to use that credit card, and the reality is that that surcharge that you’ll pay usually outweighs the reward that you’ll earn.

Sean Pyles:

That’s a great point and something that I am guilty of, because I just want the convenience of using my credit card and getting those points. But like you said, it negates the point of doing that in the first place. So, I’m taking that with me into 2024.

So Erin, if you could look into your plastic credit card crystal ball, is there anything you think is worth watching for this year in particular besides possible changes in interest rates?

Erin Hurd:

Yeah, we’ve seen several cards raise their annual fees, creep up the fees in exchange for adding more perks and benefits to the cards. And I think that’s a trend we could see continue. But just be careful because oftentimes these perks require some hoops. For instance, some offer credits towards certain purchases, but those credits are doled out monthly or quarterly, and they’re use it or lose it in that short timeframe. So just make sure you’re taking a look at the value you personally receive from a card each year when it’s up for renewal and not just its potential value on paper. If you are not using the perks, then it may not make sense for you any longer, even if it still makes sense for others.

Sean Pyles:

Erin, I also want to ask you about the Credit Card Competition Act, which has been making headlines for over a year at this point, but it seems like we might finally see some movement on this legislation that could change how we use points. Can you give us a rundown on that and what it might mean for point fanatics?

Erin Hurd:

Yeah. So, the Credit Card Competition Act is definitely something we’re keeping close tabs on here at NerdWallet. For those who aren’t familiar, this is proposed legislation that could really affect the rewards you earn from your credit cards.

See, merchants pay transaction fees as a cost of doing business for accepting credit cards. They’re called interchange fees, and this is where a lot of the money comes from that fund the credit card rewards. So if credit card issuers get less money from these fees, they may be forced to cut back on the rewards that they offer to consumers. So, we could be having a pretty different conversation about credit cards this time next year if it passes.

Sean Pyles:

We will all be keeping close eyes on this, and folks listening, we’ll let you know what happens as there’s any updates on this. Well, Erin Hurd, thank you so much for joining us and getting to the point.

Erin Hurd:

Thanks, Sean. And that’s all we have for this episode. Do you have a money question of your own? Turn to the Nerds and call or text us your questions at (901) 730-6373, that’s (901) 730-NERD. You can also email us at [email protected] and also visit nerdwallet.com/podcast for more info in this episode. And remember to follow, rate, and review us wherever you’re getting this podcast.

Sean Pyles:

This episode was produced by Tess Vigeland and Erin. I helped with editing. Kenley Young helped with fact checking. Kaely Monaghan mixed our audio. And a big thank you to NerdWallet’s editors for all their help.

Erin Hurd:

And here’s our brief disclaimer. We are not financial or investment advisors. This nerdy info is provided for general education and entertainment purposes and may not apply to your specific circumstances.

Sean Pyles:

And with that said, until next time, turn to the Nerds.

Source: nerdwallet.com

Apache is functioning normally

January 27, 2024 by Brett Tams

If someone has access to both your bank account and routing number, they could make fraudulent ACH transfers and payments out of your account. In other words, you could wind up being scammed.

That’s why it’s so important to understand this aspect of your personal finances and protect your money. Read on to learn what happens if someone has your bank account number and routing number, what the risks are, and how to protect yourself.

What Can Someone Do With Your Bank Account Number Alone?

Many of us wonder, “What can someone do with my bank account number?” The good news is, if someone has only your bank account number, that won’t give them enough intel to do any damage. It’s not the same as a scammer obtaining your credit card digits. No one will be able to withdraw money from your personal bank account if all they have is your account number.

For those who may not know the difference between a bank account vs. a routing number, here’s the scoop:

• Your bank account number is the unique string of digits that identifies your particular account at a financial institution. Even if you have, say, multiple accounts at a bank, each will have its own distinct account number.

• Your routing number is the series of numerals that identifies your financial institution, or where the account is held.

Just because your bank account number alone doesn’t make you vulnerable doesn’t mean that you shouldn’t protect it. You should. If a scammer had your account number and other info — perhaps your driver’s license number and/or your home address — they might be able to make illegal purchases online. So it pays to be vigilant.

Routinely monitoring your account activity — say, once a week — is a smart move that allows you to quickly detect if anything is awry.

💡 Quick Tip: Want to save more, spend smarter? Let your bank manage the basics. It’s surprisingly easy, and secure, when you open an online bank account.

What Can Someone Do With Your Bank Account and Routing Number?

The short answer: Real damage. The combination of a bank account and routing number is a dangerous combo that scammers want. And those two numbers are fairly accessible. Think about how often these numbers get circulated: every time a check is written, cashed, signed over to someone else.

Here’s what can happen if they fall into the wrong hands.

ACH Fraud

With both those precious numbers, crooks could commit fraudulent automated clearing house (or ACH) transfers and payments. You’re probably used to seeing those ACH letters on your banking details when you set up automatic monthly payments and the like. When a scammer has your bank account and routing numbers, they could set up bill payments for services you’re not using or transfer money out of your bank account.

It’s tough to protect these details because your account number and routing number are printed right at the bottom of your checks. But do your best. Some pointers:

• Don’t leave your checkbook lying around.

• If you are mailing a check, wrap it in a sheet of blank paper so the numbers don’t show as it’s in transit.

• Pay attention to bank statements. Review them often to see if there are any fishy transactions happening.

• Protect yourself when online banking by using strong passwords. That password is a primary defense. If a thief has your bank and routing numbers and somehow manages to get access to your login name and password, big trouble may be on the horizon.

• Don’t make your password something obvious like your name, pass1234, or numbers that may be circulating in cyberspace, like your birthday which can be seen on Facebook.

Online Shopping

Know that all online retailers aren’t equal in terms of security measures. Some will allow people to make a purchase with bank account information alone, while others will also ask for a driver’s license or other state identification to add an additional layer of protection.

So what can a scammer do with your bank account number and routing number? They can find sites that let them shop with only that information. and could run up a tab.

Depositing Money

While it might seem like a dream come true if a mysterious sum of money appeared in your bank account, you should be more alarmed than overjoyed. Somebody who has your account and routing number may be using your digits to facilitate their illegal shenanigans (such as the kind of bank fraud known as money laundering). Report unusual deposits immediately.

Create Fraudulent Checks

Unfortunately, scammers can create fake checks using your checking numbers, and then those fake checks to pay for purchases (not every payee will verify a check) — or simply cashing them. Know, too, that with technology scammers could digitally scan the check and deposit the amount into their bank account.

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What to Do When Someone Has Your Bank Numbers

As careful as you try to be, stuff happens. What if someone has your bank account number and routing number? What if you see signs that they are using it for fraudulent transactions? Knowing how to report identity theft can help mitigate a bad situation. Have a strategy in place, just in case. Here’s some advice.

Contact Relevant Agencies

If you have the misfortune of being victimized, here’s what to do:

• Contact your bank the minute you realize it. You need to notify your bank within 60 days of your statement to avoid paying for unauthorized ACH transactions. The bank’s fraud department will work to help you get unauthorized charges reversed.

• Report the fraud to the fraud department of all three credit reporting bureaus, Equifax®, Experian®, and TransUnion®.

• File a report with your local police department.

• Also file a report with the Federal Trade Commission’s department that deals with identity theft.

Your to-do list doesn’t end there. You’ll want to be a stickler about monitoring your bank account to look for any signs that someone else is abusing your account. Be proactive and ask your bank about setting up text messages or push notifications every time a transaction is posted. This will help you keep track of what’s going on with your money.

Much as you may not be a paper person, when you’re a victim of bank fraud, documentation matters. You want copies of bank statements, a copy of the police report, your credit report, and any other relevant materials.

Cancel Your Account

As much as it’s a hassle, you need to get a new account number to replace the compromised one. Call your bank’s customer service number, contact a rep by chat, or, if you use a traditional vs. online bank, go to your local branch. Explain your situation, and take steps to get your assets transferred to a new bank account, get new checks printed, and get a new debit card if needed to safeguard your cash.

Tips on Avoiding Bank Fraud

There are no absolutes in life, but there are steps you can take to protect yourself as much as possible.

• You can get an identity theft protection service to monitor your bank accounts and alert you to any funny business, be it suspicious withdrawals or information changes.

• When shopping online, use a credit card (it offers more protection than say a debit card), prepaid card, or a money transfer app instead of typing in your account and routing numbers.

• Be stingy with your banking information to avoid bank scams. Know that less is best when it comes to sharing info.

• Go for multi-factor authentication when banking online. If you have linked bank accounts and credit or debit cards to online platforms, absolutely sign up for additional verification in order for purchases to go through. It’s like a forcefield around your account.

• It can be wise to limit your use of paper checks to only those things where an alternate form of payment is a hassle. Remember your checks are a gold mine of personal information, with your address, account and routing numbers.

The Takeaway

In today’s world, it pays to keep close tabs on your bank accounts and related numbers. Having your bank account and routing number can allow scammers to do damage in a variety of ways, from unauthorized ACH payments to fake checks. By protecting these digits and setting up other safeguards, you’ll minimize the odds of your falling victim to these wily thieves.

While on the topic of banking, it’s wise to make sure your financial institution is a good fit and offers the services and perks that suit you best.

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FAQ

Which bank details should I keep secret?

Protect your bank account and routing numbers to avoid having scammers siphon money away from you. Setting up two-factor authentication for online transactions can help protect you, too. It goes without saying that no one except you should know your username, password, and security questions. Also shred financial documents that you don’t need.

Is it safe to give out your account details?

Share your banking information sparingly, especially online. At most, share a few key points with a trusted friend or family member, and only punch your details into secure websites (look for the “https” at the beginning of the url and the padlock symbol) — though even those aren’t 100% scam-proof.

Can I give out my routing number?

A bank routing number in and of itself reveals very little. After all, it’s a nine-digit code used by financial institutions to identify other financial institutions. It’s very much public information and only becomes a risk factor when paired with other personal details.

Can someone steal your money with your bank account number?

Typically, a scammer would need more than just a bank account number to steal your money, but routing numbers are easily found. With those two pieces of information, a crook could use those numbers for online purchases or to otherwise defraud you.

Photo credit: iStock/AJ_Watt

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.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

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Source: sofi.com

Apache is functioning normally

January 27, 2024 by Brett Tams

MoMo Productions/ Getty Images; Illustration by Austin Courregé/Bankrate

Portions of this article were drafted using an in-house natural language generation platform. The article was reviewed, fact-checked and edited by our editorial staff.

Key takeaways

VA loans are mortgages guaranteed by the U.S. Department of Veterans Affairs, available to eligible veterans, active-duty service members and surviving spouses.
VA loans can be used to purchase a primary residence, refinance a current mortgage or cover renovation costs.
VA loans offer several benefits, including no required down payment, no private mortgage insurance (PMI) and competitive interest rates.

A VA loan is a great option for you if you’re a qualifying active-duty military personnel or veteran. They often have more relaxed financial requirements than conventional loans, requiring no down payment or private mortgage insurance. They also typically have lower interest rates than FHA and conventional loans.

Here’s a breakdown of what VA loans are, how they work and how you can get one.

What is a VA loan?

A VA loan is a loan guaranteed by the U.S. Department of Veterans Affairs (VA). That’s not to say the VA provides these loans. Instead, mortgage lenders offer VA loans, knowing that the government guarantees them. This makes lenders more confident in lending, often offering a VA loan with a lower interest rate than a conventional mortgage.

The VA doesn’t officially set a credit score requirement for these loans. Instead, it leaves this up to the lender, with lenders requiring anywhere from a 580 to 640 minimum score. VA loans don’t require a down payment, which can make homeownership more attainable for those who qualify because you’ll need less money upfront.

How does a VA loan work?

Getting a VA loan is similar to securing a conventional loan.

Basically, you fill out paperwork from the VA that verifies your eligibility for the program. You also receive what’s known as your entitlement, which is the dollar amount guaranteed on each VA loan. While VA loans technically have no loan limit, lenders might be willing to loan up to four times the amount of your entitlement.

You can get a VA loan with no money down and, unlike other loans, you won’t have to pay for mortgage insurance. That’s because the government guarantees your loan. However, you’ll need to pay a funding fee, which costs a certain percentage of the loan total. This fee keeps the program functioning so future veterans and service members can use it.

Types of VA loans
VA loan type	Description
VA mortgage	Allows qualified service members to purchase a home with no minimum down payment.
VA construction loan	Eligible service members can use this loan to build the home of their dreams.
VA rate-term refinance	Allows service members without an existing VA loan to change their loan term or secure a lower interest rate.
VA cash-out refinance	Allows service members to swap their conventional mortgage with a VA loan, with an option to turn home equity into cash if needed.
IRRRL loan	Allows service members to replace a VA mortgage with a VA Interest Rate Reduction Refinance Loan (IRRRL), which can offer lower interest rates. It can also be used to change from an adjustable-rate loan to a fixed-rate loan.
VA rehab and refinance	Can be used by service members to finance the cost of improvements made to the home.
VA jumbo loan	Allows service members to finance a home with a sales price exceeding the conforming loan limits.
Native American loan	Available to Native American veterans to help them purchase, build, improve or refinance a home located on federal trust land.

Who qualifies for a VA loan?

The VA sets service requirements for active-duty military personnel and veterans to qualify for a VA loan. You can check the full eligibility requirements on the VA’s website, but the basics are:

You’re currently on active military duty, or you’re a veteran who was honorably discharged and met the minimum service requirements.
You served at least 90 consecutive active days during wartime or at least 181 consecutive days of active service during peacetime.
Or, you served for more than six years in the National Guard or Selective Reserve.
If your spouse died in the line of duty, you may qualify for a VA loan.

The first step in applying for a VA loan is getting a VA Certificate of Eligibility (COE). This certificate shows the lender that you meet the VA loan requirements for eligibility.

How to apply for a VA loan Certificate of Eligibility (COE)

You can get a VA loan Certificate of Eligibility by applying through your eBenefits portal online or applying through your lender.

To apply, you need to provide some data based on your current status. Veterans need to provide a DD Form 214, and active-duty service members need a signed statement of service. A statement of service should include:

Full name
Date of birth
Social Security number
The date you started duty
Any lost time
Name of the command providing the information

Different requirements may apply for National Guard or Reserve members, as well as surviving spouses. You can find more information through the VA’s benefits website, or by speaking to a qualified lender.

Other VA loan requirements

You should also keep these VA loan requirements and rules in mind:

VA loan limit: As of 2020, if you have full entitlement, there is no limit on the size of your loan. However, your lender may impose its own terms, and your entitlement will still be pegged to conforming mortgage limits.
You do have a home loan limit if you have remaining entitlement: You have an active VA loan you’re still paying back; or you paid a previous VA loan in full and still own the home; or you refinanced your VA loan into a non-VA loan and still own the home; or you had a compromise claim (or short sale) on a previous VA loan and didn’t repay it in full; or you had a deed in lieu of foreclosure on a previous VA loan; or you had a foreclosure on a previous VA loan and didn’t repay it in full.
If you have remaining entitlement, your VA home loan limit is based on the county loan limit where you live. This means that if you default on your loan, the VA will pay your lender up to 25 percent of the county loan limit minus the amount of your entitlement you’ve already used. Check your county loan limit here.
Property type: Investment properties and vacation homes cannot be purchased using VA loan proceeds. Furthermore, you must occupy the home and use it as your primary residence.
Credit score: The VA does not specify a minimum credit score requirement. However, borrowers might have a hard time getting approved by a lender if they don’t have at least a 620 FICO Score.
Income: Borrowers need to show they have the income to make the mortgage payments. It’s equally important to not have a huge debt load since the lender will assess your debt-to-income ratio (DTI), or the percentage of your monthly income that’s spent on debt payments.
Assets and down payment: There is no down payment requirement for VA loans, but the lender may have overlays (or specific criteria) that mandate a down payment in place for borrowers with lower credit scores.
Reserve funds: Many lenders require borrowers to have an adequate amount of reserves — generally two to three months of mortgage payments — before clearing you to close on your loan.

It’s also possible to use home loan benefits after bankruptcy, as long as sufficient time has passed, typically two years after filing for Chapter 7 bankruptcy or 12 months after Chapter 13 bankruptcy.

VA home loan pros and cons

For those who are eligible, VA loans have many benefits, but they also have drawbacks to consider.

Pros of a VA loan

Some of the key advantages of VA loans include:

Lower borrowing costs: VA loans can be cheaper than their conventional mortgage counterparts.
No down payment: VA loans allow you to purchase a home with zero down payment, making homeownership more accessible for those who may struggle to save a large lump sum. You need at least 3 percent down for a conventional mortgage.
No mortgage insurance: Unlike many other types of mortgages, VA loans do not require you to pay private mortgage insurance (PMI), potentially saving you hundreds of dollars per month.
Competitive interest rates: Because the government guarantees these loans, lenders are able to offer lower interest rates than you’d typically find with conventional loans.
Capped lender fees: The VA limits lender fees (like loan origination fees) to 1 percent of the loan amount. This can result in lower closing costs than other loan types.

Cons of a VA loan

Despite the many benefits, VA loans also have a few downsides to consider:

VA funding fee: VA loans come with a funding fee that can vary depending on your military category, down payment amount and whether you’ve previously used a VA loan. You can finance this fee into the loan amount, adding to the total cost of the loan, or you can pay it upfront at closing.
Limited to primary residences: You can only use VA loans to purchase a primary residence, not vacation homes or investment properties. However, you can buy up to a four-unit property with a VA loan as long as one unit is your primary residence.
Not all properties qualify: Not every property will meet the VA’s minimum property requirements (MPRs), which can limit your potential housing options.
Longer closing process: The VA loan process can take slightly longer than other loan types due to extra steps such as the VA appraisal.

How to apply for a VA loan

After you’ve obtained your COE and are ready to apply, there are a few steps you need to take:

Gather your financial paperwork.
Look for lenders that offer VA loans.
Get approved for a VA loan through at least three lenders.
Compare each lender’s offer and choose the best option.
Shop for a home and submit an offer.
Have a seller accept your offer and get a signed purchase agreement with the seller.
Get a VA home appraisal and inspection.
Work with the lender through the underwriting process, promptly responding to questions and requests for documentation.

If you’re struggling with your VA loan, there’s extra help available. The VA can help you negotiate with your lender if you can’t make payments. With the help of the VA, it’s possible to avoid foreclosure through loan modification or other repayment plans. Call 877-827-3702 if you need help.

VA loan FAQ

VA loans can have term lengths of 10 to 30 years. In addition, they can be fixed-rate or adjustable-rate mortgages (ARMs). The interest rates for VA loans are typically lower than those for conventional loans, mainly because the VA guarantees a portion of the loan, which reduces the risk for the lender. These rates change frequently, so check Bankrate’s VA home loan rates to compare offers from different lenders.
A key feature of VA loans is the entitlement. This is the amount of the loan that the VA will guarantee to the lender if you default. There are two types of entitlement:
- Basic entitlement: Up to $36,000 for loans worth less than $144,000, or 25 percent for loans of that amount or more.
- Bonus entitlement: Up to 25 percent of the Federal Housing Finance Agency (FHFA) loan limit, minus the basic entitlement.
If you’re purchasing a loan that costs more than $144,000, the bonus entitlement can be used.
No, VA loans don’t require PMI or any other mortgage insurance. That’s because the VA loan entitlement usually amounts to more than 20 percent of the home’s value. However, while you won’t need to pay for mortgage insurance, you will have to pay a funding fee.
As with any mortgage, different lenders have various closing costs. You might need to pay for discount points, a credit check, VA appraisal fees, title insurance and other costs, including local and state taxes. While you don’t have to worry about PMI, you do have to pay a VA funding fee. Your VA funding fee depends on the size of your VA loan down payment, and whether it’s your first-time use of the benefit.

Down payment First-time use Subsequent use

0%-5% 2.15% 3.30%

5%-9.99% 1.50% 1.50%

10% or more 1.25% 1.25%

So, while a VA loan down payment isn’t required, it can save you money to make a down payment.

Quick note: Disabled veterans who receive disability benefits are exempt from the VA funding fee.

Also, it’s possible to wrap your VA closing costs into the loan amount. However, that increases how much you need to borrow and can cost you more.

Down payment	First-time use	Subsequent use
0%-5%	2.15%	3.30%
5%-9.99%	1.50%	1.50%
10% or more	1.25%	1.25%

Source: bankrate.com

Apache is functioning normally

January 25, 2024 by Brett Tams

Update 1/24/24: business version here.

The Offer

Direct link to offer

Citi is offering the following bonus on the Citi / AAdvantage Platinum Select World Elite MasterCard
- Earn 30,000 American Airline miles after $1,500 in spend within the first three months.
- Earn up to $400 in statement credits on eligible American Airline purchases within the first 6 months

Card Details

Our Verdict

Standard increased bonus on this card is 75,000 miles. It used to be possible to apply for an offer with a statement credit and then match to the higher miles offer but that hasn’t been possible for a long time now. Some people will prefer this statement credit offer whereas others will prefer the miles offer. We will add this to our best credit card bonus page.

Hat tip to reader Carl J

Source: doctorofcredit.com