This year’s down market has shifted what mortgage lenders are seeking from their technology partners, because the spare dollars for nice-to-haves are no longer around. The booming housing market the past few years brought with it a surge in mortgage tech adoption, and while this movement towards innovation has been welcomed by mortgage parties, now more than ever lenders are looking at the data behind these mortgage tech claims. Return on investment and cost savings around must-haves are now the focus in a lot of tech partnerships.
To learn more about this shift in mortgage tech needs and the changing dynamic in vendor-lender partnerships, HousingWire interviewed John Hedlund, California Mortgage Bankers Association (CMBA) chairman and chief operating officer at AmeriHome Mortgage Company and Wes Iseley, CMBA board president of residential and senior managing director of Carrington Holding Company.
California is home to some of the largest lenders which allows the association to keep a very strong pulse on the needs and trends in housing. The associations’ annual Mortgage Innovators Conference in Anaheim, California in June is designed to explore the revolutionary world of mortgage technology and helps attendees gain valuable insights from experienced industry professionals.
“The Mortgage Innovators Conference is unique in our space because there’s more of a conversation and interaction with lenders and technology companies, or innovators. It was part of our goal to not just have a bunch of booths where people are pushing products and instead where they’re solving problems that lenders have today,” said Hedlund.
“The beauty of the Mortgage Innovators Conference, and what we’re trying to build there, is really more of that two-way dialogue. The companies that are coming are listening and trying to enhance, improve and develop their products, and will reposition what they’ve already built or are in the process of building,” he said.
This collaborative mindset is what will define the lenders and tech providers that grow. In the following Q&A, Hedlund and Iseley discuss what innovation looks like today, the current table stakes in mortgage tech, what tech companies should keep in mind when talking to lenders and more.
HousingWire: What are some of the biggest areas that lenders are looking at technology to solve?
John Hedlund: In 2021, business was crazy good, and lenders had more money. You had a lot of vendors and startups selling, for lack of a better term, bells and whistles. They were, in my opinion, nice-to-haves and didn’t really move the needle. You’d have an LO come over to your company, saying that they need a certain software because they’re comfortable with it, so lenders would buy it because they could afford it. We’re in a different world now. Most lenders lost money last year.
So when I think of technology today, I talk to our providers about how they need to show their economic value add more than ever. How do you take costs out of my business? How have you proven that, factually?
When I talk to clients and ourselves, I focus on “what do we really need that moves the needle?” And, “What is just nice to have?” I’m getting rid of the nice-to-haves, and we’re finding other vendors that want to come in.
For most of the guys today, it’s all bottom-line driven. They need to be liquid, and they don’t know what’s next with rates.
Wes Iseley: There are some real issues that are still out there with speed to close. The first thing with speed to close, anything we can do to income verifications, which we have come a long way in bringing that in. There are different models out there trying to bring in income verification quickly.
The second one would be from a compliance standpoint — wire fraud. Everybody has to have that compliance and quality in place because that will drive costs up.
So the whole time we’re speeding things up, and at the same time, we need to have our protections in place so we don’t have surprise losses. There’s a lot of work going on the front and the back end from a compliance perspective.
HW: What are the new table stakes when it comes to technology?
JH: There’s always way more ideas than are actually going to ever catch on. It’s hard to carve out a new niche where there’s really a value add, but ultimately, that’s where I would start. What is my value proposition? And, it has to be somewhat hard today; it can’t be soft. By soft, I mean that it’s a nice-to-have. I think of an economic value-add. If followed all the way through the process, does it move the needle somewhere?
WI: Right now, if you can’t make it easy for the customer, that customer is going to get frustrated and go away. It’s tough out there right now. This includes the ease of use for the customer and the communication in keeping all people involved in that transaction informed as it goes along. Especially in a purchase money close, you can’t mess up the close when the moving truck is outside. Keeping everybody informed as the process goes is a must.
HW: What should mortgage tech companies keep in mind when talking to lenders?
JH: There’s a lot of value in talking to a variety of different lenders in different markets, and testing, tweaking and revising your business model when it needs change. If you want to have something that isn’t a niche product, it has to ring true with the masses.
When we started AmeriHome, our mindset wasn’t to chase shiny objects. From the start, our goal was to be a top-five correspondent lender, and so we built the company with scale in mind and our value prop very simplistically became, “How are we going to add value to our clients?”
I see a lot of tech vendors that have great ideas in isolation that aren’t ever going to necessarily be at scale because it’s a niche-type model. In most cases, I wonder if they’ve vetted that and spent, not an hour, but weeks or months finding out what their clients really need and solving a problem versus creating a product to try and find a problem.
HW:What does housing innovation look like in today’s market?
WI: The big issue out there is affordable housing. While there are modular homes, manufactured homes and factory-built homes, there are so many restrictions. In California for example, there’s a fee to transport the manufactured house, which adds $25,000 to $30,000.
You need to get down state by state and say what are the restrictions? I think factory-built housing and the precision of the building itself is of a higher quality and that’s a way to solve for affordable housing. You’re not going to affect land price, so it’s the build. This is a big solution that everybody should be working on.
By Peter Anderson15 Comments – The content of this website often contains affiliate links and I may be compensated if you buy through those links (at no cost to you!). Learn more about how we make money. Last edited February 10, 2020.
When people talk about their investment plans, one of the first topics that invariably comes up is how much they should be investing.
Should they be investing 5%?
15%?
50% of their income?
Today I thought I’d look at the number that comes up most often as being conventional wisdom for most people when it comes to how much to invest – 15% of yearly income.
Investing 15% Of Your Income Into Post-Tax And Pre-Tax Retirement
For many folks the discussion of how much to invest is a moot point as they’re still struggling to get rid of debt, and get to the point where they’re able to start saving for their future.
If you’re beyond that point, congratulations, you should be applauded.
For me getting to the point where you really start to save and build wealth for your future is so exciting! A variety of financial gurus suggest saving 15% of your household income in good solid long term investments in order to have enough for your future.
So why is that number brought up?
Why Should I Save 15%?
To give a visual demonstration of why some folks suggest that you save 15% for your retirement, I went to Dave Ramsey’s website and used his investment calculator. I put some numbers into the calculator based on these factors:
Making $100,000 a year
Saving 15%
Starting at age 30
Saving for 30 years
10% return on the investments
When you put in those numbers above, it comes up with a return of well over 2.8 million dollars by the age of 60.
If you were to keep it going even for 5 more years until the age of 65, the account would grow to over 4.8 million dollars. That’s not half bad!
So how much money would you really need in order to have a comfortable retirement? Assuming that you would want 80% of your pre-retirement income to live on as many suggest, and a withdrawal rate of 4% per year and a 30 year retirement, you would need to have about 2 million dollars.
If you invest 15% of your 100k income, that would allow you to withdraw $112,000 a year for 30 years. (which assumes the money would still continue growing at a rate of at least 8% while you are withdrawing) That is 12% more than your pre-retirement income! 4.8 million would allow for $192,000 per year!
Now if you were to invest 10% using the same assumptions you’d end up with substantially less money, 1.5 million over 30 years, and 2.4 million over 35 years. Still not bad, but maybe not as much as you might want to have that comfortable retirement. At the 30 year point you’d have enough to withdraw 60% of your income, and at 35 years you’d have 96% of your pre-retirement income.
All of these numbers are of course assuming that you don’t have money coming from social security. I have my doubts it will last until my own retirement. That is obviously up for debate, and hopefully the system will be fixed. But why depend on it if it might not be there?
The point of all this to me is that 15% is usually going to be more than adequate to get you to where you need to be. 10% may not be, depending upon how much of your previous income you want to live on, and how much time you have until retirement.
The longer you have until retirement, the bigger the gains you’ll see through compounding interest!
Play it safe and start saving 15%. You won’t be sorry!
Another caveat; if you’re older and have less time until retirement, or if you want to retire early, you may need to be investing a higher percentage than 15%. You started late or want to finish early, so you have some ground to make up!
Starting earlier? You might not need to invest all of the 10%. But why not do it anyway!
What Should I Invest In?
Once you’ve decided on how much you want to invest, the next step is to decide on what types of investments you should be holding. What to invest in will vary greatly on your situation, but here’s what we would do:
Company 401k or other plan up to the match
Roth IRA for you and your spouse (Where to open a Roth IRA)
Back to the 401k or other plan
When choosing what types of funds to invest in I would highly recommend doing your research first, however, for us we prefer investing in low cost index and retirement target funds through companies like Vanguard where the costs remain low (Try a 3 fund portfolio!).
If you want an option that costs a tiny bit more than DIY, but is less work, Betterment or Wealthfront may be good options (after maxing tax preferred investing).
What do you think? Will 15% be enough for your retirement? Do you think you should save more or less?
If so, then you are probably considering the amount of time that you should take for the extent of the term. Of the 20, 25 and 30 year term policies, for most people the 25 year term life insurance is going to be the best for the overall benefits.
20 and 30 year term life insurance is generally for more specialized cases and they do have their uses, but 25 year term life insurance fits more people overall, especially younger families who are just starting out, although, they can benefit people in different age groups as well.
Term life insurance is very important to handle the financial burden of a loved one who passes away. The needs of the family are still present when the breadwinner is no longer around.
If you’re like most Americans, if you were to pass away, you would leave your family with thousands of dollars in debt. The majority of families would have no way to pay for all of these unpaid expenses, but that is where life insurance comes in. It can give your family the resources they need to get through this difficult time without adding financial stress.
Choosing the right length for your type of life insurance needs to be geared towards the expected financial burdens which include paying the mortgage, auto loans, and other bills while covering the funeral expenses. It’s important that you find a balance between choosing the right term length and the perfect premium amount.
What follows are the advantages gained from choosing a 20, 30 or 25 year term life insurance policy.
20 year term vs. 25 year term
A 20 year term life insurance policy works well for middle aged and older people in covering the remaining expenses on their mortgages. These are the groups of people that in the next decade, they won’t have any children relying on their income.
Plus, with the children having grown up, making sure that the funeral expenses are covered.
However, a 25 year term policy may be just as beneficial depending on the circumstances, especially if their children have not quite left home yet. Those extra few years can make a difference in terms of coverage.
So, for 20 year term vs. 25 year term, the advantage for most people falls to the 25 year term policies.
25 year term vs. 30 year term
The 30 year term policy is generally more suited for young couples just starting out, especially if they have just purchased their first home on a 30 year mortgage.
This will ensure that if anything were to happen to them, they will be able to pay off the mortgage and not have to worry about losing the roof over their heads.
A 25 year policy is generally more suited for people who have already started paying on their mortgage for a few years or have taken out a shorter-term mortgage.
Again, depending on your circumstances you should choose the policy that extends your coverage just enough past your mortgage and kids growing up and leaving home.
For many, the 25 year term life insurance policy is more than enough while the 30 year term leans more towards longer commitments.
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Expenses
You should not only consider the length of the term life insurance, but the amount as well to cover all of your expenses that incur if the breadwinner of your family should pass away.
These expenses include;
Mortgage
Funeral
Household Bills for the next 6 months
Cash reserve for unexpected expenses
These are only a few of the factors that you should consider when deciding how large of a policy you need to purchase.
25 Term Term Life Quotes
Here are some sample quotes on a 25-year term life insurance policy for a female. It should be noted that not all of the top life insurance companies offers the 25-year option.
Sex
AGE
$250,000 Term Life Insurance Policy
Cheapest Quote 1
Cheapest Quote 2
Cheapest Quote 3
Female
30
Face amount $250,000
SBLI $15/mo
Protective $15/mo
American General $16/mo
Female
40
Face amount $250,000
SBLI $22/mo
Protective $23/mo
American General $24/mo
Female
50
Face amount $250,000
SBLI $48/mo
Protective $49/mo
American General $53/mo
Here’s a screenshot that shows sample quotes for a 25-year term policy for a 30-year-old male.
As you can see, the quotes don’t have banner life insurance company in the mix, but some other great carriers are there.
The final amount should be to cover what you either may not have considered or for unexpected situations such as the family member dying away from home and needing transportation.
All in all, covering your expenses with term life insurance can greatly ease the immediate financial burden and bring about a little peace of mind when it comes to the financial situation.
You should also consider how much income your family would lose if you were to pass away and how would they replace that income? If you’re the main income-earner, your family could struggle to replace your salary. It’s important that your policy gives them enough time to find another source of income.
There is no “magic number”, but most insurance experts suggest that you purchase a policy that is around ten times your annual salary. This will give your loved ones plenty of time to recover and get back on their feet.
With such a large policy, a lot of applicants think they won’t be able to afford a policy that is ten times their salary but don’t worry, in most cases the policy premiums are much cheaper than you might think.
There are several ways that you can get a more affordable insurance policy without having to sacrifice any of the quality or coverage amount. The best way is to compare all of your insurance options before you make a decision. More than likely, the first company that you call isn’t going to have the lowest monthly premiums. Because there are so many companies that sell life insurance, it could take several days for you to call them and receive insurance quotes for your policy. Instead of wasting your time, let us bring the lowest rates to you. Simply fill out the quote form on the side with your information and we will provide you with the best rates.
We are independent agents, which means that we don’t work for one specific company. Instead, we represent some of the best-rated companies across the United States. Because we don’t work for one company, we are committed to bringing you the best policy to fit your needs, regardless of which company sells it.
Aside from comparing policies, there are several other ways that you can save money on your life insurance policy. One of those ways is to improve your health and kick your bad habits.
After you complete the paperwork for your applications, the company is going to send out a paramedic to complete a simple medical exam. During this exam, the company will look at your basic vital signs, like blood pressure, heart rate, cholesterol, weight, and they will also take a blood and urine sample. The medical exam doesn’t take long, but it will have a huge impact on your chances of being accepted for the policy and how much you’ll pay every month. If you want to save money, take the time to improve your health. If you think that your health is too poor or you have serious health complications, you can always choose a no-exam medical policy. You can get the coverage without the exam, but you will pay more for the plan.
The other sure-fire way to save money is to kick your bad habits like smoking cigarettes. A smoker buying life insurance is going to pay twice as much (sometimes three times as much) regardless of the rest of their health. If you want to get a policy for the most affordable rates, it’s time to kick those bad habits and enjoy some extra money in your pocket every month.
According to a new report published by Allied Market Research, titled, “U.S. Home Decor Market by Product Type, Income Group, Price, Distribution Channel & Category: Opportunity Analysis and Industry Forecast, 2020-2027,” The U.S. home decor market size was valued at $125,813.0 million in 2019, and is estimated to reach $158,929.1 million by 2027, registering a CAGR of 8.0% from 2020 to 2027. In 2019, the floor covering segment accounted for significant contribution in the U.S. home decor market share, and is expected to grow at a CAGR of 8.4% throughout the forecast period. The U.S. home decor market has witnessed significant growth over the years, and is expected to grow at a steady pace during the forecast period. This is attributed to the fact that market players are focusing on developing eco-friendly products, owing to rise in environment awareness. The floor covering segment occupied the largest share in the overall home decor market in 2019, and is expected to maintain its leading position throughout the forecast period, owing to the wide adoption of floor coverings,
The home decor market in U.S. is driven by surge in disposable income and improvement in living standards. Moreover, the rise in affinity of consumers toward consumer-friendly home décor products are anticipated to boost the demand for home decor products. However, availability of low-quality and counterfeit products and fluctuations in the prices of raw materials used to manufacture these products restrain the market growth. Conversely, surge in demand for trendy and unique furniture is anticipated to provide lucrative opportunities for the U.S. home decor market growth.
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The U.S. home decor market is segmented based on product type, distribution channel, price, income group and category. Depending on product type, the market is divided into furniture, home textile, and floor covering. By distribution channel, it is fragmented into supermarkets & hypermarkets, specialty stores, e-commerce, and others. Based on the price, the market is segmented into premium and mass. Based on the income group, the market is segmented into lower-middle income, upper-middle income, and higher income. Based on category, the market is segmented into eco-friendly and conventional.
According to the U.S. home decor market analysis the floor covering segment generated the highest revenue in 2019, and is expected to remain dominant throughout the forecast period. The flooring segment is also expected to witness the highest growth rate of 8.4% from 2020-2027.
According to the U.S. Home Decor market forecast based on distribution channel, the specialty stores segment was the highest contributor to the U.S. market in 2019 and is expected to remain dominant through 2020-2027. However, the E-commerce segment is expected to grow at a higher growth rate through the forecast period.
Based on the price, the mass segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. However, the premium segment is expected to grow at a higher growth rate through the forecast period
Based on the income group, the higher income segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. The upper-middle income segment is expected to grow at a notable growth rate through the forecast period.
Based on the category, the conventional segment was the highest contributor to the U.S. home decor market in 2019 and is expected to remain dominant through 2020-2027. The eco-friendly segment is expected to grow at a highest growth rate through the forecast period
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Key findings of the study
The U.S. home decor market was valued at $125,813.0 million in 2020 and is estimated to reach $158,929.1 million by 2027, growing at a CAGR of 8.0% through the forecast period. Based on product type, the floor covering service segment would witness the fastest growth, registering a CAGR of 8.4% during the forecast period. In 2019, based on distribution channel, the specialty stores segment held the highest share, accounting for nearly half of the U.S. home decor industry. In 2019, based on the price, the mass segment was the most prominent segment and is expected to grow at a significant CAGR throughout the forecast period. Conventional segment was the dominant segment in 2019, accounting for a considerable share in the U.S. market.
Reason to Buy: ✅ Save and reduce time carrying out entry-level research by identifying the growth, size, leading players, and segments in the U.S. home decor market . ✅ Highlights key business priorities in order to guide the companies to reform their business strategies and establish themselves in the wide geography. ✅ The key findings and recommendations highlight crucial progressive industry trends in the U.S. home decor market , thereby allowing players to develop effective long-term strategies in order to garner their market revenue. ✅ Develop/modify business expansion plans by using substantial growth offering developed and emerging markets. ✅ Scrutinize in-depth global market trends and outlook coupled with the factors driving the market, as well as those restraining the growth to a certain extent. ✅ Enhance the decision-making process by understanding the strategies that underpin commercial interest with respect to products, segmentation, and industry verticals.
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Allied Market Research is market research, consulting, and advisory firm of Allied Analytics LLP. Founded in 2013, the firm has been instrumental in offering high-quality syndicated and customized market research reports, consulting services, and useful insights to leading market players, startups, investors, and stakeholders. Driven by the aim to eliminate sub-standard data and become a successful partner for organizations, Allied Market Research has been innovating continuously, expanding the product & service portfolio, and implementing the client-first approach since its inception. With the clientele spanning more than 7,000 organizations that also include a majority of Fortune 500 companies, AMR has a proven track record of helping and serving the global clientele and playing a major role in their success.
Perhaps one of the most confusing aspects of getting a mortgage is knowing who you actually pay once the thing funds. And to that end, when your first mortgage payment is due.
While Bank X may have closed your loan, an entirely different company could send you paperwork and a payment booklet. What gives?
Well, this highlights the difference between a mortgage lender and a mortgage servicer.
Mortgage Lender vs. Mortgage Servicer
The bank or mortgage lender processes and funds the home loan
Once it closes it may be sold off to a loan servicer or retained in portfolio
The job of a loan servicer is to collect monthly mortgage payments
And manage escrow accounts if your home loan has impounds
As noted, a mortgage loan servicer, also known simply as a loan servicer, is the company that collects your monthly mortgage payments.
They also manage your escrow account if your home loan has impounds, collecting a portion of property taxes and homeowners insurance each month, before making those payments on your behalf when due.
So really, there’s a good chance you’ll deal with your loan servicer a lot more than your mortgage lender, who may have only been in the picture for a month or so while your loan was originated.
You see, many mortgage lenders focus on loan origination as opposed to servicing, so they’re happy to fund your loan and quickly sell it off for a profit, then rinse and repeat.
The same goes for mortgage brokers, who fund your loan on behalf of a wholesale mortgage lender, which also may sell off the loan to a different servicing company shortly after it closes.
Further complicating all this is the fact that your mortgage lender could also be your loan servicer because some big banks and mortgage companies can profit from it.
One thing mortgage companies figured out in recent years was that keeping in touch with their past customers was a great way to generate repeat business.
But if they sell all their home loans off to other companies, they may lose out if mortgage rates fall and these customers are ripe for a mortgage refinance.
There are also mortgage subservicers, companies that perform loan servicing tasks on behalf of a lender, instead of completing those things in-house.
Anyway, without getting too convoluted here, it’s important to note this distinction between lender and servicer so you know who you’re dealing with.
And to ensure you’re sending monthly mortgage payments to the right place!
What Do Loan Servicers Do?
Collect monthly mortgage payments
Manage escrow accounts (property taxes and homeowners insurance)
Provide customer service if borrowers have any questions
Generate loan payoff statements
Perform loss mitigation (loan default, loan modifications, foreclosure, credit reporting)
Ensure compliance with federal, state, local regulations
The list above should give you a better idea of what loan servicers do, and why banks and lenders may choose to outsource these things.
If you have any questions regarding your home loan post-closing, it’s generally best to get in touch with your loan servicer as opposed to your mortgage broker or lender.
They should be able to answer any questions you have, whether it’s knowing where to send payments, how to make extra payments or biweekly mortgage payments, loan amortization questions, and so on.
Additionally, if having payment troubles in the future, your loan servicer should be the one to call to discuss options.
Remember, the lender is typically just there to help process and close your loan, then hands off the reins to a servicer from there.
Mortgage Servicing Transfers
Many home loans are transferred to loan servicing companies shortly after funding
You should receive a letter within 15 days of your loan being transferred
The new company’s contact information should be prominently displayed
It will also include the date when the old servicer will no longer accept payments
And the date when the new servicer will start accepting monthly payments
One of the most important things to do after your mortgage closes is to take note of who your loan servicer is.
Unfortunately, mortgage servicing rights are frequently transferred shortly after your loan funds, which can make it confusing to know who to pay.
Add in all the junk mail you might receive as a new homeowner (like mortgage protection insurance) and it could get really murky.
The good news is lenders and loan servicers must adhere to certain rules regarding the transfer of servicing rights.
After your mortgage funds, look out for a letter in the mail from the entity that closed your loan regarding a servicing transfer. You may also receive a letter from your new loan servicer as well.
It should clearly explain who will be processing your mortgage payments going forward, and is required to be sent 15 days prior to your loan’s servicing rights being transferred to the new servicer.
The letter should include all the relevant contact information you’ll need to ensure payments are sent to the right company at the right time.
Take note of when they’ll begin accepting payments, and when the old company will stop accepting payments.
In my opinion, it doesn’t hurt just to call the company and make sure everyone is on the same page before you send your payment, just to avoid a mess.
If you do make a payment mistake, there are some protections in place if it’s within 60 days of the servicing transfer, per the CFPB.
During this time, the new loan servicer can’t charge you a late fee or mark the payment as late if your payment was sent to your old servicer by its due date or within the grace period.
Who Are the Top Mortgage Servicers in the Country?
1. Quicken Loans 2. Regions Mortgage 3. Huntington National Bank 4. TD Bank 5. Chase 6. M&T Mortgage 7. SunTrust Mortgage (Truist) 8. Bank of America 9. Guild Mortgage 10. Citizens Mortgage
Quicken Loans was the highest-ranked mortgage servicer for the seventh consecutive year in 2020, per the latest U.S. Primary Mortgage Servicer Satisfaction Study from J.D. Power.
Both USAA and Navy Federal actually have higher rankings than all the companies listed above, but don’t meet the survey’s award criteria.
In other words, you should have a very good customer experience with those two companies as well.
Who Are the Largest Mortgage Servicers in the Country?
These are listed in alphabetical order since I don’t have figures available to rank them by total servicing volume. But they are some of the largest mortgage servicers in the country.
All of these companies service billions of dollars in home loans for customers, which they either originated themselves or acquired from other banks and mortgage lenders.
If you have a mortgage, there’s a good chance one of the companies on this list handles your loan servicing.
Tip: Always take the time to make sure you’re actually dealing with your loan servicer and not some phony entity.
In 2019, one out of every 100 homes were purchased by an iBuyer, short for instant buyer, per a new report from real estate brokerage Redfin.
While it doesn’t sound like iBuying is catching on, consider the fact that the number is up nearly double from 0.6% in 2018.
And about 10 times higher than it was back in 2016, when virtually nobody sold their home via an iBuyer service.
Also recognize that iBuying at scale is a very novel concept, and a business that big household names have just recently got involved in.
Some of the larger names in the space include Offerpad, Opendoor, RedfinNow, and Zillow Offers.
Simply put, an iBuyer will purchase your home for a fee somewhat similar to what a real estate agent would charge, only to rehab it and list it weeks or months later to a new buyer.
The advantage is you don’t need to find an agent, list it, stage it, hold open houses, and deal with uncertainty from prospective buyers.
In essence, you can consider these iBuyers institutional home flippers.
If they streamline their operations enough to lower costs, they might grow even more popular and eventually displace thousands of real estate agents.
iBuying Most Common in Raleigh
While iBuyers still account for a tiny piece of the overall pie, they snagged a whopping 7.3% share of home sales in Raleigh, North Carolina last year.
That was nearly double the 3.9% share reported in 2018, a testament to both the viability of iBuying and the good fit cities like Raleigh present to such companies.
Per Redfin chief economist Daryl Fairweather, places like Raleigh are “iBuyer sweet spots” because they are affordable, have newer housing stock, and are easy to price because many of the homes reside in homogeneous tract neighborhoods.
Raleigh is also a city poised to see home price growth, another important detail iBuyers have to consider when looking to turn a profit.
Lastly, it has been a pilot city for many iBuyers, who aren’t live in all cities across the United States just yet.
Similarly hot was Phoenix, AZ, where iBuyers scooped up 5.9% of homes for sale, followed by Charlotte and Atlanta (tied at 5.2%), and Las Vegas (4.1%).
iBuyers had a market share of 3% or more in 11 markets nationally, and at least 1% share in 21 total markets.
Again, because iBuyers haven’t rolled out to all cities nationwide, the numbers are still a bit scattered and lopsided.
In terms of volume, iBuyers purchased the largest number of properties in Phoenix (5,200+), followed by Atlanta (4,300+) and Houston (2,100+).
iBuying Surged in Tucson During the Fourth Quarter
iBuyer market share saw its biggest year-over-year increase in Tucson, AZ, where the number rose from 3.1% of homes in the fourth quarter of 2019 from zero a year earlier.
Again, this may reflect companies moving into new markets, but it also shows how quickly they are gaining traction and beating out traditional agents.
The second biggest increase was in Denver, CO, where the iBuyer share rose to 2.7% from 0.4% the year before.
Despite growing popularity, iBuyer market share did fall year-over-year in select markets, including Las Vegas (-3.4%), Phoenix (-1.2%) and Orlando (-1.0%), compared to Q4 2018.
However, Orlando was the only metro area to see its share fall on an annual basis from 2018 to 2019, declining from 2.6% to 2.2%.
iBuyers Like to Buy Homes on the Cheap
As noted, iBuyers tend to be interested in mid-market homes that are easily bought and sold, but there’s still quite a range nationwide.
The most expensive markets in 2019 were Riverside, CA, Denver, CO, and Portland, OR, where these companies purchased homes at a median $391,000, $386,000, and $377,000, respectively.
The cheapest markets included Tucson, AZ, Jacksonville, FL, and Atlanta, GA, where the median was $201,000, $202,000, and $212,000, respectively.
Overall, iBuyers paid a median $269,000 for the homes they purchased, up three percent from 2018, but well below the national median of $306,000 in January.
In every housing market other than Riverside, CA and Orlando, FL, iBuyers paid below the metro-area median.
In terms of unloading the homes once purchased, iBuyers were able to sell homes 15 days faster in 2019 than they did a year earlier, this despite the typical home sale taking two days longer.
iBuyer-owned properties were listed on the market for a median 38 days in 2019, compared to 53 days in 2018.
Meanwhile, a non-iBuyer home spent a median 37 days on the market last year, compared to 35 in 2018.
If iBuyers get better at what they do, it might become a more practical solution for home sellers, assuming these companies pass the savings onto consumers.
When you choose a bank for your daily checking and savings needs, you can choose between a national bank, a smaller regional bank, credit unions of varying sizes, and even online banks and financial technology companies.
Since early 2023, when Signature Bank and Silicon Valley Bank both experienced failures after customers pulled out large amounts of money during bank runs, banking customers may feel more comfortable choosing a national bank.
Although the U.S. government took extraordinary measures to protect the assets of SVB and Signature Bank customers, and deposits held in the accounts were FDIC insured, many customers were still rightfully concerned about gaining access to their money in a timely manner.
After the banking crisis of 2008, the Federal government declared banks like JPMorgan Chase, Bank of America, Citibank, and Wells Fargo as “too big to fail.” But these aren’t the only national banks or credit unions available.
You might think that smaller online banks may have lower fees, while small local banks are known for friendly and responsive customer service. But the national banks on this list blend the best of all worlds: low fees, high marks for customer satisfaction, ways to avoid overdraft fees, convenient ATM networks, and a variety of banking products.
16 Best National Banks
Here are the 16 best national banks that offer exceptional services, excellent customer support, and innovative banking solutions to meet all of your financial needs.
1. SoFi – Best for Digital Banking & High Yields
SoFi became a nationally chartered online bank in 2022, after acquiring Golden Pacific Bancorp, Member FDIC. Originally known for its vast array of loan products, including private student loans, today SoFi has a combination checking and savings account, or a cash management account, with no monthly service fee.
SoFi also has no minimum balance requirements, no overdraft fee, and overdraft protection up to $50 with qualifying direct deposits each month. You can bank for free at any of 55,000+ fee free Allpoint ATMs nationwide.
As an online bank, SoFi offers higher interest rates than you may find at brick and mortar banks. Earn up to 4.20% APY on your savings account balance and 1.20% on money in your checking account. When you use your SoFi debit card at select local businesses, you can earn up to 15% cash back.
SoFi offers two tiers of accounts: SoFi and SoFi Plus. To qualify for the “freemium” SoFi Plus membership, bank customers must have qualifying direct deposits. Plus, when you sign up before December 31, 2023, you can earn a cash bonus of $250 when you set up direct deposits of $5,000 or $50 with a direct deposit as low as $1,000.
SoFi Plus members receive loan rate discounts, bonus rewards, access to special entertainment events and more, making SoFi a unique company when it comes to online banks.
2. Discover Bank – Best for Cash Back
Discover may be best known for cashback and rewards credit cards. But its online banking products are some of the best you’ll find among national banks.
With no monthly fees and no minimum balance, your Discover Cashback checking account pays 1% cashback on up to $3,000 worth of debit card purchases monthly. You’ll never pay overdraft charges, and you can withdraw cash at a network of 60,000+ fee free ATMs.
You can qualify for overdraft protection by linking your Discover Bank savings account. Discover Savings pays a high 3.90% APY with no minimum deposit required.
Other Discover Bank deposit accounts include CDs with terms from 3 months to 10 years, and a money market account that pays 3.80% APY for balances under $100,000 and 3.85% on balances $100,000 and up.
For questions or help with your account, you can reach a U.S.-based customer service representative for Discover Bank by phone, 24/7/365.
3. Chase Bank – Best for Credit Card Rewards & Referral Bonuses
As the world’s largest national bank, JPMorgan Chase Bank doesn’t need to do much to entice customers. People will choose Chase based on its name, reputation, and more than 4,700 convenient branch locations across the U.S.
However, Chase happens to have one of the best bonuses for new customers and a generous referral bonus program when existing customers refer their friends. This, coupled with a robust and easy-to-use mobile app and a variety of checking, savings and investment services, puts Chase on our list of top national banks in the U.S.
Chase is currently offering new Chase Total Checking customers a $200 bonus when they open a new account and set up direct deposit within the first 90 days.
New or upgrading Chase Private Client customers can earn a $3,000 bonus with a deposit of $500,000 or more within the first 45 days of account opening. Deposits of $150,000 to $249,999 earn $1,000 and cash deposits of $250,000 to $499,999 earn $2,000. You must keep the money in your J.P. Morgan Wealth Management or JPMorgan Chase deposit accounts for 90 days to qualify.
In addition to Chase Total Checking, the bank’s most popular checking account, and Private Client services, Chase also offers other checking and savings accounts.
Chase Secure Banking has a $4.95 monthly fee and no overdraft fees. Chase Premier Plus Checking offers a few added benefits beyond Chase Total Checking, including ATM fee rebates up to four times per statement cycle, a linked personal checking account with no monthly fees, and a 0.01% interest rate on balances.
Chase also offers bank accounts for kids, teens, and college students, as well as CDs, savings and money market accounts, mortgages, loan products, and a full array of top-rated rewards credit cards.
If you have multiple Chase accounts, it’s easy to manage them all within the mobile app.
4. Chime – Best for Building Credit
Chime is a financial technology company backed by Stride Bank, Member FDIC, and Bancorp Bank, Member FDIC. It is not a bank, itself, but offers some of the same features, including online banking, a debit card, and direct deposit up to two days earlier than some other banks.
Chime has no monthly service fee, no overdraft fee, and no minimum balance requirements. For customers who need a little boost to make it from paycheck to paycheck, Chime offers fee-free overdraft up to $200 through the SpotMe5 program and a credit builder secured Visa credit card with no annual fees, interest or minimum security deposit.
Use your Chime debit card at any of 60,000+ fee free1 ATMs in the Allpoint, MoneyPass or Visa Plus Alliance ATM networks. Out of network ATM fees may apply, otherwise.
You can qualify for Chime’s SpotMe program with a single direct deposit of $200 or more during any monthly statement period. If you process a transaction that would put you into overdraft, Chime will accept the transaction even if it puts your balance into the negative by up to $200.
The Credit Builder Secured Visa card carries the same requirements of a $200 monthly minimum direct deposit. You can build your credit and raise your credit score with responsible use of the card.
5. Citi® – Best for Large Cash Deposits
The third of the four largest national banks in the U.S. based on assets, Citi, owned by Citigroup, is best for high net worth customers or those with large cash deposits divided among Citi checking, savings, and other accounts.
Currently, you can earn a generous cash bonus of $200 to $2,000 when you open a qualifying Citi checking account and meet specific minimum opening deposit requirements. Your bonus will be determined by your account balance on the 20th day after opening the account. Funds must remain in the account for an additional 60 days after the 21st day.
Citi offers multiple checking accounts to meet various customers’ financial needs, all with monthly fees that are easy to waive if you hold the required minimum balance. The bank accounts include:
Citibank
Citi Priority, which includes travel perks and access Citi Personal Wealth Management advisors
Citigold, relationship banking and investment services
Basic Banking and ATM access
Access Account, a debit account with no paper checks
For the Basic Checking account, you’ll need to maintain a $1,500 minimum balance to waive the fees. The other accounts have larger minimum balance requirements to avoid monthly maintenance fees and take advantage of other perks, up to $200,000 for a Citigold account.
All accounts provide access to personal banking at Citi branches and access to more than 65,000 fee free ATMs across the U.S. All accounts except for Basic and Access accounts also have no fees at ATMs outside the Citi network.
Like all the larger national banks on this list, Citi has a full gamut of rewards credit cards, savings and money market accounts, and high-yield CDs.
6. CIT Bank – Best for High Interest Rates
CIT Bank, a division of First Citizens Bank, has earned awards and accolades for customer satisfaction, rated by American Banker as #1 for “delivering the most humanized experience in banking.”
You should be aware that deposits in First Citizens Bank & Trust Company, Member FDIC, are not separately insured. This only matters if you hold more than $250,000 in any single account type, such as checking or savings, in both First Citizens Bank and in CIT Bank.
CIT is the online only banking arm of First Citizens Bank, with high-yield savings accounts, CDs, money markets, and eChecking, all with no monthly fees and no overdraft fees. You won’t pay any ATM fees at CIT Bank machines, and CIT Bank reimburses up to $30 per month when you use out-of-network ATMs.
CIT offers 0.25% APY on checking when you hold more than $25,000 in your account, and 0.10% APY on balances under $25,000. The bank has high interest rates for savings, offering customers a 4.85% APY on balances of $5,000 or more with the Platinum Savings account.
CIT Bank has two other savings accounts as well:
Savings Connect, with a 4.60% APY
Savings Builder, which requires a minimum balance of $25,000 or a $100 monthly deposit to earn 1.00% APY
You’ll need a $100 minimum deposit to open a checking or savings account at CIT Bank.
7. Bank of America – Best for College Students
As the second largest of the best national banks, behind Chase, Bank of America has the full gamut of banking products, with three checking accounts plus a student account, savings, CDs, and investment products.
It’s easy to waive monthly maintenance fees on a checking account with a minimum daily balance, direct deposits, combined balances across eligible linked Bank of America accounts, or by enrolling in their Preferred Rewards programs.
We like the Advantage SafeBalance banking for kids, teens, and college students under 25 years old. They have no monthly fee and no overdraft fees. Teens ages 16+ can have sole ownership of the account.
For everyone else, the bank offers Advantage Plus and Advantage Relationship checking accounts with easy ways to waive the monthly fees with direct deposit or a minimum daily balance.
When you open a new checking account, you can qualify for a $100 bonus when you receive qualifying direct deposits of at least $1,000 within 90 days of opening the account.
Of course, Bank of America also has CDs, and a savings and money market account. Plus you can invest with Merrill. All of these deposit accounts count toward your Preferred Rewards membership.
When you have a combined average daily balance of at least $20,000 for three months, you’ll qualify for the rewards program.
8. U.S. Bank – Best for Military Members & High Balance Savings
U.S. Bank offers the Bank Smartly checking account so you can earn interest on your money. The current interest rate is just 0.01% APY on all checking balances. You’ll pay a $6.95 maintenance fee, but this is waived if you meet minimum deposit requirements or if you are a member of the U.S. military.
You can link your Bank Smartly checking account to a standard savings account or Elite Money Market to earn even more. To avoid fees on your savings account, you’ll want to keep a $300 minimum daily balance or a $1,000 average monthly collected balance. If you are already a Bank Smartly customer, you can enroll in Smart Rewards to waive savings account fees.
The Elite account is better for those with high balances. You can earn up to 4% APY on balances from $25,000 up to just under $500,000.
The appeal of U.S. Bank is in its high ratings for banking satisfaction across the board from customers. U.S. Bank earned accolades for having the best mobile app, the best digital mortgage tools, the best customer service features, and best mobile check deposit capabilities. These factors all contribute to its ranking as a best national bank.
9. Axos Bank – Best Online Bank
Axos is an online only bank with a rewards checking account that delivers up to 3.30% APY, with no fees and unlimited ATM fee rebates for out-of-network ATMs.
To earn the maximum APY, you’ll need to set up direct deposit and Axos Bank’s free Personal Finance Manager for 0.70% interest. Then, open an investment account and take out an Axos personal loan or auto loan and earn another 2.60% annual percentage yield on your checking account balance.
Axos also offers an Essential Checking account with early direct deposit and no fees, and a Cashback Checking account, which gives you 1% cash back on debit card purchases, along with no maintenance fees and unlimited domestic ATM fee reimbursements.
Voted the best online bank by many top personal finance sites, Axos Bank offers more than just high interest, no fee checking.
Axos Bank offers CDs with terms between 3 and 60 months and a savings account with 0.61% annual percentage yield, with interest compounded daily. You can also find personal loans, car loans, mortgages, and investment products.
Like other national banks, Axos Bank provides FDIC insurance up to $250,000 or $500,000 for joint account holders. But you can expand your coverage up to $150 million with Axos Bank InsureGuard+ Savings from IntraFi Network Deposits.
Axos splits up your large deposit into multiple accounts across several banks, each covered up to $250,000. If you are dealing with a substantial amount of cash and want your savings protected at a single bank, Axos may be a good choice for you.
New customers can earn a $100 welcome bonus by opening an account with just a $50 minimum opening deposit.
10. Truist Bank – Best for Relationship Banking & Innovative Savings Perks
Truist Bank is one of the top 10 largest national banks, formed as a merger between BB&T and SunTrust in 2019. Called “the biggest bank you’ve never heard of” by CNN Business, Truist holds assets of $574 billion and has been growing steadily since the merger.
Truist offers checking and savings accounts, CDs, and credit cards. Truist checking and savings customers can earn perks and benefits. This includes access to Long Game, a savings game app that lets you earn cash when depositing into your Truist savings account. It also includes bonus rewards on your Truist credit cards.
Truist has four levels of relationship banking in its Truist One checking account. This means the more you deposit, the more perks you will receive, up to a 50% loyalty bonus on Truist credit cards, and a discounted annual fee for a Delta SkyMiles debit card. Benefits for relationship banking begin at $10,000 in combined average monthly balances for Truist deposit accounts.
Your Truist checking account has a $12 monthly fee, which is easy to waive with $500 or more in direct deposits each month or a $500 minimum balance across all Truist deposit accounts. Truist personal loan, mortgage or credit card customers also pay no fees on their Truist checking account.
You can also waive the monthly fee with a linked Small Business checking account or if you are a student under the age of 25. You’ll need a $25 minimum opening deposit for a Truist One checking.
Customers with lower income or just getting started establishing their finances can benefit from Truist Confidence checking and savings accounts. The account has just a $5 monthly maintenance fee, which is easily waived.
11. Capital One – Best for High Interest Rates at a Brick and Mortar Bank
Like Chase Bank, Capital One is well known for its top-rated rewards credit cards. The company is also one of the best national banks with a savings account and CDs offering interest rates higher than the national average.
Capital One Performance 360 savings has a 3.90% APY, no monthly maintenance fees, and no minimum deposit to open your account. A Capital One 360 Performance checking account, similarly, has no monthly maintenance fee, overdraft protection through your linked savings account, and early direct deposit.
You can bank with no fees at a network of 70,000+ ATMs nationwide, and can deposit cash easily at CVS retail locations. Although you must open your Capital One Performance account online, you can receive personalized service and deposit cash at any Capital One bank branches or Capital One Cafes.
12. PNC Bank – Best in East and Southwest
PNC Bank is a large, national bank with branch locations across 29 states. Most branches are in the east, south, and southwest, although you will also find branch locations in some Midwest states.
PNC Bank’s online checking account is called Spend and it links to the PNC VirtualWallet. You can add a savings account, called Reserve, or upgrade to the Performance Select product with two tiers of savings and double layer overdraft protection.
When you set up your VirtualWallet with PNC Bank and open your Spend account, you can earn a $50 bonus.
Combining your Spend account with a PNC Bank Reserve account yields even more benefits. Earn a $200 bonus when you qualify. Finally, if you open a Performance Select VirtualWallet, you could earn $400.
Each account comes with a low monthly fee that is easily waived through qualifying monthly direct deposits or by meeting minimum balance requirements.
13. Wells Fargo – Best for Checking Account Options
Wells Fargo, one of the “big four,” is the fourth largest of the best national banks in the U.S. It is known for having many convenient bank locations, with 4,700 branch locations.
The vast number of branches across the country puts it top on our list for in-person banking and customer satisfaction.
Plus, we also rated it best for various checking account choices for everyone from children to retail investors.
Like the other national banks on this list, Wells Fargo has checking, savings, and CD accounts. The bank has four checking account options for consumers at various stages of their financial lives:
Clear Access Banking, with no overdraft fee and a low $5 monthly fee, waived for teens and young adults ages 13 to 24
Everyday Checking, the most popular bank account, with optional overdraft protection
Prime Checking, offering discounted interest rates for loans and higher interest rates for linked CDs and savings accounts
Premier Checking, a relationship banking service with 24/7 support and discounts on investing services
It’s easy to waive the $10 fee on Everyday Checking with a $500 minimum daily balance or $500 in monthly direct deposits. Waive the $25 fee on your Prime checking with $20,000 in linked balances. Similarly, your Premier Checking account will be free with $250,000 in linked balances, including investments with the bank’s Advisors.
You’ll need a $25 minimum opening deposit to open your account.
14. Ally Bank – Best Online Only Bank for Savings
Ally Bank is widely recognized as one of the best national online banks. It has very few fees, including no maintenance fee, no overdraft fee, and no ACH fee (even on expedited transfers). Plus, you’ll earn interest of 0.25% in your checking account and 3.85% APY on savings, including money you have allocated into various buckets.
We rated Ally Bank as the best online only bank for savings, not just because of the high interest rate, but because it offers so many ways to manage your money and ramp up your savings efforts.
You can set up recurring transfers into your savings account for specific goals or just to build up your emergency coffers. You can choose to round up transactions made with your Ally Bank debit card, or even electronic payments and checks. When Ally Bank finds at least $5 in “round-up” savings, it will be transferred automatically to your checking account.
Finally, Ally Bank analyzes your checking account periodically to reveal extra funds that are “safe to save.” Ally Bank automatically transfers that money for you. But you can transfer it back whenever you’d like.
In addition to these savings benefits, Ally Bank lets you access your money with your debit card with no fees at any of 43,000+ Allpoint ATMs. The online bank also refunds up to $10 in fees charged by out-of-network ATMs.
You can avoid stress and overspending with the Overdraft Transfer Service, which automatically transfers money from your Ally Bank savings account into checking. If you exceed six transfers or six savings withdrawals per month, Ally Bank will reimburse those fees, too.
You can also apply for CoverDraft℠ Coverage, which will cover up to $250 in charges that would put your account in the negative. You’ll qualify 30 days after you deposit at least $100 into your checking account. If you receive qualifying direct deposits of at least $250 two months in a row, you can increase your coverage to $250.
15. TD Bank – Best for Overall Banking Satisfaction
TD Bank, deemed America’s most convenient bank for its number of branches, branch hours and excellent customer service, blends the best of brick and mortar banks with easy online banking.
Most TD Bank locations are open seven days a week, including Sundays, with extended hours beyond what most brick and mortar banks provide. Most TD Bank branches are located across the East Coast, with locations in 15 different states and Washington, D.C.
TD Bank is the 7th largest bank in the U.S. based on deposits, with 1,668 branch locations nationwide. You can also reach customer service by phone, 24/7/365, which earns TD Bank high marks for banking satisfaction.
TD Bank offers six checking accounts for customers in various life stages:
TD Essential Banking
TD Convenience Checking
TD Beyond Checking
TD Simple Checking
TD 60 Plus Checking
TD Student Checking (for ages 17 to 23)
Currently, TD Bank is offering sign-on bonuses for new customers who open a TD Beyond or TD Convenience bank account. You’ll need a qualifying direct deposit (or more than one) totaling $2,500 within the first 60 days to earn $300 with TD Beyond, and a direct deposit of just $500 within the first 60 days to earn $200 with TD Convenience.
16. Schwab Bank – Best for Investors
Schwab may be best known as an investment service, but the bank was rated highest in banking satisfaction with checking accounts from J.D. Power & Associates four years running.
If you have a Schwab investment account, or are considering opening one, Schwab could be the best choice in banking for you.
The Schwab Bank Investor checking account has no foreign transaction fees, no minimums, and unlimited ATM fee rebates. Plus, earn 0.45% annual percentage yield on checking. Schwab’s savings account offers 0.48% APY.
Schwab also offers exceptionally high interest rates for CDs, with up to 5.40% APY and terms as short as 30 days. You’ll receive FDIC protection exceeding the federal maximum because you can purchase CDs from multiple banks, all through Schwab investment.
Methodology: How We Chose the Best National Banks
We evaluated a variety of banks and credit cards, taking into consideration the:
Variety of products
Interest rates
Monthly fees
ATM fees and ATM fee reimbursement
Branch locations and number of branches
Minimum deposit requirements
Fraud protection and security
We also looked at consumer reviews, and drew on the general reputation of each bank to find the best national bank.
Finding the Best National Bank
Now that we’ve explored the specifics of the best online banks and brick and mortar banks nationwide, you probably still have questions about which one is really the best national bank.
Let’s compare the three largest in the U.S. based on number of branches, interest rates, and overall banking satisfaction.
Chase vs. Wells Fargo
For the largest nationwide bank, Chase offers excellent banking satisfaction with an A+ rating from the Better Business Bureau, 4,800 branch locations, and an easy and intuitive mobile app. If you are shopping for a bank credit card, Chase also offers some of the best rewards cards available today.
Wells Fargo rivals Chase when it comes to number of branches, with roughly 4,700 locations across the U.S. It’s somewhat easier to waive the checking account fees at Wells Fargo. Wells Fargo offers higher interest rates for savings, with a 0.15% APY compared to Chase’s 0.01%.
Both banks have lower interest rates than you might find at online banks. However, if you are looking for national banks with a solid reputation, many branches, and high marks in banking satisfaction, either Chase or Wells Fargo would be a good choice.
Wells Fargo vs. Bank of America
Bank of America and Wells Fargo are the second and third-largest banks in the U.S. based on assets. BofA only has 4,000 branches compared to Fargo’s 4,700, but BofA boasts more ATMs nationwide.
BofA stands out when you join the Preferred Rewards program because you can waive the fees on your bank account and enjoy perks, bonus rewards on BofA credit cards, and rate discounts on loans.
If you have a large balance or are looking for an investing platform through your bank, BofA may be your best choice. On the other hand, Wells Fargo offers high interest rates on savings and convenient branch locations nationwide.
Common Questions
People have many questions related to whether an online bank is better than a traditional bank or whether a local bank is better than one of the largest national banks. We break it all down here.
Which is better, an online bank or a brick-and-mortar bank?
If you are looking for the highest interest rates and generous rewards programs, you are highly likely to find them at online banks. However, there are some advantages to a brick and mortar bank, including in-person service at local branches, the availability of paper checks, and easy ways to deposit cash in person or at branch ATMs.
You should expect the best national online banks and the best brick and mortar banks to have robust mobile apps, easy-to-waive fees, and fraud protection.
Make sure whatever bank you choose is “Member FDIC,” which means your deposits are insured up to $250,000 per account holder, per account type. That means joint accounts have $500,000 worth of FDIC insurance protection.
Is my money safer in a national bank vs. a regional bank (or a national credit union vs. a regional credit union)?
All banks on this list are Member FDIC, which means they are insured to the maximum allowable limit of $250,000 per account holder, per account type. Credit unions are covered up to the same limits by the National Credit Union Administration.
Many online banks are insured up to $2 million or more. These financial institutions divide cash deposits among multiple partner banks. Each bank insures deposits up to the maximum limit allowed by the Federal Deposit Insurance Corp. Read the fine print to determine your coverage limits when you choose a bank.
Beyond that, your money should be equally safe in a national bank, a smaller bank, or a credit union of any size. Also look for features such as fraud protection, fraud alerts via text, email or in the mobile app, and enhanced website security measures. You should also be able to lock and unlock your debit card in the mobile app if you misplace it or believe it may have been stolen.
What makes big banks different from smaller banks?
By definition, big banks will have larger market capitalization, which represents the total value of a bank’s stocks. Big banks will also hold more assets. For instance, Chase, which is the world’s largest financial institution, holds $3.2 trillion in assets. The second-largest national bank, Bank of America, possesses $2.41 trillion in assets. Larger financial institutions may also have more bank branches.
In many other ways, big national banks and smaller banks are similar, especially today. Customers want specific features and are unwilling to compromise on things like fee-free ATMs, no monthly fees, early direct deposit, and an intuitive mobile app.
How much interest do the best big banks pay?
In general, some of the largest national banks do not have the highest interest rates for savings and very few offer interest earning checking accounts.
Capital One 360 and Discover are two of the best national banks that offer interest on checking. To earn a higher APY with one of the largest national banks, you might want to consider CDs.
Are national banks better than other kinds of banks?
National banks aren’t necessarily better or worse than other kinds of banks. They may have more convenient branch locations, a higher number of branches, and a greater variety of products, but they might also have higher fees. Decide what’s most important to you when you choose a bank.
If you’d prefer to trust your money with one of the largest national banks, with a large market capitalization, high value, and branches nationwide, consider opening your checking and savings accounts with one of the best national banks on this list.
Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted.
1. Out-of-network ATM withdrawal fees may apply with Chime except at MoneyPass ATMs in a 7-Eleven, or any Allpoint or Visa Plus Alliance ATM.
5. Chime SpotMe is an optional, no fee service that requires a single deposit of $200 or more in qualifying direct deposits to the Chime Checking Account each at least once every 34 days. All qualifying members will be allowed to overdraw their account up to $20 on debit card purchases and cash withdrawals initially, but may be later eligible for a higher limit of up to $200 or more based on member’s Chime Account history, direct deposit frequency and amount, spending activity and other risk-based factors. Your limit will be displayed to you within the Chime mobile app. You will receive notice of any changes to your limit. Your limit may change at any time, at Chime’s discretion. Although there are no overdraft fees, there may be out-of-network or third party fees associated with ATM transactions. SpotMe won’t cover non-debit card transactions, including ACH transfers, Pay Anyone transfers, or Chime Checkbook transactions. See Terms and Conditions.
Owning a real estate property is a significant investment that can be lucrative compared to other assets, such as owning stocks or bonds. One huge advantage is the concept of leveraging when you want to invest in real estate. One can pay a small portion of the total cost and pay the remaining together with interest over a long period.
For instance, most mortgages require an initial down payment of about 20% of the property and occasionally can be as low as 5%. With this arrangement, you can control. You can invest in different ways in real estate and start making money.
Real Estate Investment Trusts (REITs)
Real Estate Investments Trusts (REIT) are among the best vehicles for investors to get into real estate investment without following the traditional transactions. It is a regulated investment where a trust (corporation) uses finances from investors who pool their funds to buy and operate income-generating properties.
Typically, REIT uses the investor’s funds to build or purchase real estate property, which they sell or rent to gain profits. At the end of the financial year, the income generated is shared among the investors or the shareholders. Some of the real estate properties managed under the REIT may include apartments, shopping malls, office buildings, warehouses, and resorts, among many others.
All along, real estate investment trusts have been among the best-performing set investment portfolios.
For instance, from 2010 to 2020, the FTSE NAREIT Equity REIT index averaged 9.5% in annual returns. Between 2017 and 2020, the index stood at 11.25% and was higher than the S&P 500 or Russell 200 performance that averaged 9.07% and 6.45%. REITs can be bought and sold like any other stock in leading exchanges. Therefore, investors looking for returns on their investments and traditional assets should consider these real estate assets. Republic is a real estate company that can offer you more information on different investment assets in real estate.
There are different types of REITs one can invest in, and they include the following.
Mortgage REITs
Retail REITs
Healthcare REITs
Residential REITs
Office REITs
If you’re interested to know how to invest in any of the above types of REITs, you can get in touch with Republic for guidance and advice on what will suit you best.
Any investor anticipating REITs needs to distinguish between mortgage REITs that offer to finance for properties and Equity REITs that own properties.
Real Estate Crowdfunding
What is real estate crowdfunding ? In many respects, real estate crowdfunding is almost similar to equity crowdfunding because the investors buy the property and become shareholders. It is a relatively new phenomenon in real estate, and like any equity investment, the investor does not have to buy the whole property, but instead, they earn part of the profits generated in the investment. Income obtained from building rentals or proceeds from the sale is shared among the investors.
Crowdfunding is a technique of raising funds for a business or venture capital. Its approach uses Twitter, Facebook, Linkedin, and other social media platforms to attract investors.
The principle of crowdfunding is that many people can invest tiny amounts and because many people are involved, and substantial amounts of funds can be raised so fast. One advantage of real estate crowdfunding is that potential investors can become shareholders in real estate property with as little as $5000.
Before the JOBS Act, investors in real estate could only invest in real estate through REITs or buying the property.
Now, crowdfunding has opened new ways of investing in real estate and will reduce the risks that come with an equity portfolio. This means that it allows the investor to diversify risks in their portfolio because all funds are not exposed to all equity markets’ risks.
Some Regulations in Real Estate Crowdfunding
Like any other investment, a real estate crowdfunding investment comes with its risks. Initially, crowdfunding was only the preserve of the accredited investors. These are the investors such as pension funds, banks, insurance companies, and other large investors. An accredited investor means that one should have a net worth of more than $1million or needs to be earning $200,000. However, according to the Securities Exchange Commission (SEC), non-accredited investors can participate in crowdfunding. There are specific limitations placed on non-accredited investors.
If you’re interested in real estate crowdfunding as an investor Republic can offer all the necessary information to participate in this lucrative industry.
Ben Shepardson is a Realty Biz News Contributing Writer and has a long track record of success in online marketing and web development. While pursuing a bachelor’s degree in Computer Information Systems, he worked doing enterprise-level SEO and started an online business offering web development services to small business customers.
Congratulations! Buying a home is an exciting time for every family. The next step is packing up your current home and moving into your new one. Moving can be overwhelming but, luckily, we have a checklist to help you make your move efficient and organized.
The Ultimate Moving Checklist:
1. Disconnect all utilities: Before you move schedule for your cable, internet, electricity, etc. to be turned off. Call your provider about a month before the move to let them know the date that you want to stop the service.
2. Schedule new utilities: Let there be light! A month before your move, call all your providers to schedule to have your utilities setup.
3. Measure doorways and furniture: Take the extra precaution of measuring all your furniture and doorways in both your new and old home. Inform the movers of the measurements and make sure they have a backup plan in case some pieces can’t fit.
4. Change mailing address: Don’t let your mail get lost in the shuffle. Call your post office five weeks before the big move and let them know of your change in address.
5. Leave a change of address: It’s better to be safe than sorry. Leave a note for the new residents, informing them of your new address. If any stray mail gets through the postal system, they’ll be able to send it your way.
6. Get covered: It seems like a tedious task but it’s important. If you’re moving outside of your current neighborhood, it’s best to call your old pharmacy and transfer all your current prescriptions to a local pharmacy closer to your new home. Tell your doctors that you are moving and ask for referrals and record transfers. If you have children, make sure to register them for school in your new school district.
7. Notify accounts of your move: Whether it’s your newspaper and magazine subscriptions or your credit cards, don’t miss anything. Call all the important companies and providers in your life to give them your new address. Don’t forget to get your homeowners insurance changed to your new address!
8. Tag your furniture for placement: You get to your new home, furniture is all moved in, and it just so happens that everything is in the wrong place. Prevent that by sticking notes on larger pieces of furniture, signifying where they belong in the home.
9. Create a “just in case” kit: If the movers are late or get lost on the way, it’s best to be prepared. Fill a box with cash, a first aid kit, toilet paper, snacks, and any other daily essentials you may need to get yourself through moving day.
10. Get a new driver’s license, voter’s registration, etc.: Changing your address through the postal service and other accounts are important, but don’t forget to take care of personal documents as well. Change your address on your driver’s license, insurance policies, and voter’s registration.
Moving to a new home is the start of a new chapter. Be prepared in all aspects to ensure that you have the best moving experience ever!
Los Angeles Mayor Karen Bass’ homelessness team is looking to purchase a 15-story hotel in the city’s Westlake neighborhood, the latest big expenditure planned as part of her “Inside Safe” program.
In a memo sent to the council’s Budget, Finance and Innovation Committee, Bass and her team acknowledged they are seeking to acquire the 294-room Mayfair Hotel, which served for two years as interim homeless housing before closing its doors last summer. The building has been listed for nearly $70 million in recent months.
Bass and her team declined to say how much the city has offered, saying the price will be revealed when the transaction goes before the city’s municipal facilities committee next month. They said the hotel would serve as a critical tool in the city’s fight against homelessness, helping to reduce the leasing costs associated with Inside Safe, which has moved about 1,200 people off the street and into hotels, motels and other facilities.
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If the city finalizes the purchase, the Mayfair would be a key part of the city’s effort to create “permanent interim housing” — city-owned residential buildings where homeless people can live for up to a year before finding their own apartments.
Under the proposal, the city would provide an array of services on the Mayfair’s ground floor — substance abuse counselors, mental health clinicians and public health workers, Bass said.
“There’s no shortcut to do this. You can warehouse people in a shelter if you want, and they’ll stay there for a couple of days and they’ll be right back out on the street,” Bass said. “We have to think outside of the box, and maybe a little bit outside of the boundaries of what the city is normally doing.”
A broker representing the Mayfair referred questions to Alex Moradi, an executive with the ICO Group of Companies. Moradi did not respond to several requests for comment.
However, Bass’ homelessness team confirmed that the city signed a nonbinding letter of intent with Mayfair Lofts, the hotel’s owner, three weeks ago. That company is affiliated with ICO, according to information provided by the county assessor’s office.
Bass has asked the council to allocate $250 million for Inside Safe, which has targeted encampments in Hollywood, Venice, South Los Angeles and other parts of the city, in next year’s budget. That figure does not include any money that would be needed to purchase the Mayfair. If the sale goes through, the cost of Inside Safe could exceed $300 million for the coming budget year.
A bicyclist rides past the Mayfair Hotel, a 15-story hotel in L.A.’s Westlake neighborhood.
(Jason Armond / Los Angeles Times)
Councilmember Katy Yaroslavsky, who serves on the council’s budget committee, endorsed the idea of purchasing hotels and motels, saying the city will need “thousands and thousands of units” to address its crisis.
Yaroslavsky said her office has tried repeatedly without success to lease hotels and motels in her affluent Westside district. But paying rent to motel owners is also “not a good long-term strategy,” she said.
“The logistics of trying to negotiate one-off [agreements] with hundreds of motel owners puts us in a bad bargaining position,” she said. “When we go one by one, we’re not optimizing our buying power.”
On Wednesday, Bass and Yaroslavsky went to the mayor’s 16th Inside Safe operation, located along a stretch of San Vicente Boulevard in L.A.’s Beverly Grove neighborhood, which is part of Yaroslavsky’s district. Nearly two dozen tents had taken hold on San Vicente’s median strips and other rights of way.
Jeremy Mosley, who had been living on one of those medians, said Wednesday he was ready to make the move. But he sounded unsure about relocating to a motel in South Los Angeles, more than a dozen miles away.
“I want to see what it’s like. Because this does look bad. I know it does,” he said, gesturing to the furniture, tarps and other possessions that occupied the median.
The mayor’s proposed homelessness budget for the coming year lists four separate line items for the acquisition of interim housing, which add up to $73 million. Bass’ team declined to say whether all or a portion of those funds would go toward the Mayfair.
Those funds are not included in the $250 million being requested for Inside Safe.
The Mayfair was the site of a $37-million renovation in 2018 and 2019, according to the property’s real estate listing. In 2020, it became one of several hotels across the city to participate in Project Roomkey, a federally funded program that moved homeless Angelenos off the streets as part of the nation’s response to the outbreak of COVID-19.
City leaders voted to end the Project Roomkey program last year. But several of the locations that participated in the program continue to serve as temporary housing for L.A.’s homeless population.
Last fall, the council voted to keep the Highland Gardens Hotel operating as temporary homeless housing at least through June 30. That facility, located in the Hollywood Hills, offers 72 rooms, or up to 143 beds.
The Mayfair Hotel, a 15-story hotel in the Westlake/MacArthur Park neighborhood of Los Angeles. Mayor Karen Bass’ team is in talks to purchase the building to use as interim homeless housing.
(Jason Armond / Los Angeles Times)
City Administrative Officer Matt Szabo said the hotel will probably remain as interim homeless housing through 2025, at a cost of about $6 million per year. At that facility, leasing costs are about $4,550 per room per month, according to a report to the council. Once social services offered by PATH, or People Assisting The Homeless, are included, the monthly room cost exceeds $7,000.
Councilmember Nithya Raman, who represents the Hollywood Hills, worked to secure Highland Gardens before Bass took office. Bass, for her part, was closely involved in the effort to retain another Project Roomkey hotel, the L.A. Grand in downtown Los Angeles.
The L.A. Grand was originally slated to close as temporary homeless housing on Jan. 31. Bass’ team succeeded in leasing 481 rooms at that facility for an additional year. The monthly cost of a room, which includes not just lodging but also meals, is $154 per night, or nearly $4,700 per month, according to a memo provided to the council last month.
The council would need to sign off on a purchase of the Mayfair. Meanwhile, at least one former Mayfair resident is objecting to the proposed acquisition.
Cynthia “Mama Cat” Trahan, 62, who lived in the Mayfair for about four months, said Project Roomkey staff treated the hotel’s temporary guests with “very little respect,” searching them when they entered the building and sometimes going into their rooms without permission, she said.
Buying the hotel is “just not a good idea,” said Trahan, who now lives in an apartment in Glendale.
“We should be investing in putting people in apartments, not hotel rooms,” she said.
Watch L.A. Times Today at 7 p.m. on Spectrum News 1 on Channel 1 or live stream on the Spectrum News App. Palos Verdes Peninsula and Orange County viewers can watch on Cox Systems on channel 99.