Credit unions Archives - Page 39 of 66

Apache is functioning normally

June 22, 2023 by Brett Tams

It seems 1% down is the new zero down in the mortgage world, with San Diego-based Guild Mortgage the latest to join the fray.

The independent mortgage bank, like others before it, will take advantage of a grant to give homeowners instant equity, while requiring just 1% from the borrower’s own funds.

The 1% down home loan program is a new form of down payment assistance, though unlike similar programs that preceded it, the gift doesn’t need to be paid back and the borrower actually gets some skin in the game.

Guild Mortgage’s 97% LTV with a 2% Grant and 1% Down Payment

Like other 1% down mortgage options available
Guild is relying on a 2% grant that doesn’t need to be paid back
But there are lots of guideline restrictions
Including income limits and credit score minimums

Aspiring homeowners who take advantage of the Guild 1% Down loan program can instantly acquire 3% equity in the property they purchase despite only putting down 1% thanks to a two percent grant that doesn’t need to be repaid.

Quicken has a similar program, as does United Wholesale Mortgage if you go the mortgage broker route.

Guild Mortgage refers to it as “3-for-1” equity with “no strings attached,” and say it’s ideal for those with good credit who lack the necessary down payment funds, a common problem these days.

This gifted grant money is subject to income limits, required homebuyer classes and other criteria, though income limits don’t apply in census tracts that are designated as low-income.

It’s basically intended for low-and-moderate-income first-time home buyers who have difficulty coming up with a down payment, though repeat buyers are also welcome to apply.

The program does require a minimum FICO score of 680, which is slightly below average nationwide.

As far as income, it can be up to 100% of area median income, or without limits in low-income tracts.

Guild Mortgage Allows for Flexible Income Limits and Sources

The program allows DTI ratios up to 50%
Along with the use of non-borrower household income and boarder income
Loan amounts capped at the conforming limit
And it requires private mortgage insurance to be paid

Speaking of income, Guild Mortgage’s loan program allows DTI ratios as high as 50%, which is pretty forgiving for a 1% down mortgage program.

And to sweeten the deal, they allow non-borrower household income and boarder income, the latter being a tenant/renter that pays you to live in the property.

In other words, if someone agrees to rent one of the bedrooms in your house for $500 per month, you can use 75% of that (to account for vacancy) and apply $375 toward your total income to meet DTI limits.

Loan amounts are allowed up to the conforming limit, which is $453,100 in the contiguous United States and even higher in Alaska and Hawaii, so it sounds like it’s backed by Fannie Mae or Freddie Mac.

The product does require private mortgage insurance, but it is cancellable and offered at a reduced rate. Again, this aligns with the 97% program backed by Fannie and Freddie.

Both single-family homes and condos are allowed, though it’s unclear if more than one-unit is permitted. The property does have to be owner-occupied, obviously.

There’s no mention of loan type, but my guess is they will primarily offer borrowers a 30-year fixed product. Not sure if ARMs are an option here given the implied higher risk of a low-down payment mortgage.

Guild Mortgage originated a healthy $15.9 billion in loan volume last year, up from just $1 billion back in 2008.

The company also services more than 155,000 home loans, and has correspondent lending relationships with credit unions and community bankers in 47 states.

Source: thetruthaboutmortgage.com

Apache is functioning normally

June 22, 2023 by Brett Tams

You have a lot of options on where to get a mortgage, and it’s not just big or regional bank lenders. Credit unions are increasing their stake in the mortgage market, as well. Not only do credit unions offer competitive loan terms and a more personalized customer service experience, but they also feature more flexible lending criteria in some instances.

Still, a traditional bank could be a better fit, depending on your financial situation. If you’re trying to decide between a credit union or bank for your mortgage, consider the pros and cons.

Credit union mortgage pros

You’ll generally pay fewer fees.
Credit unions typically offer lower mortgage rates.
You’ll receive exceptional service.
The eligibility guidelines might be more lenient.

Credit union mortgage cons

You must be a member to apply for a mortgage.
The technology could be more dated.
You’ll likely have fewer branch and ATM options.
Some credit unions are unable to match or beat terms offered by banks.

Pros of getting a credit union mortgage

“More and more people are learning that they can find the best deal and the best service in town at a credit union,” says Curt Long, chief economist and vice president of Research for the National Association of Federally-Insured Credit Unions (NAFCU).

The benefits of getting your mortgage through a credit union include:

Fewer fees

Credit unions are known for their lower fees. You’re likely to see lower fees and rates at credit unions because they pass on any savings to their members.

This is different from banks, whose sole purpose usually involves generating revenue for investors, says Bob Dorsa, former president of the American Credit Union Mortgage Association in Las Vegas. “(A credit union’s) ‘stockholders,’ per se, are the members, the customers.”

Lower rates

If you’re looking to get the best mortgage rate possible, there’s a good chance you’ll find it at a credit union.

“On average, credit unions offer lower rates on mortgage loans,” says Long.

Remember, even a slightly lower rate can have a big impact on the interest you pay over the life of the loan.

Better personalization and service

Credit unions are known for their superior service, says Long. For example, there’s a greater chance that you’ll know your servicer.

With bank mortgages, it’s common for the company that collects your mortgage payments to change several times over the life of your loan. That’s usually not the case with credit union mortgages.

“Credit unions retain a higher share of the loans they originate in their portfolio than other lenders, where it is more common to sell the loan and its servicing to a third party,” says Long. “Credit union borrowers are more likely to maintain the relationship they establish with their lender throughout the life of their loan.”

Sticking with the same servicer can save you from late fees that could arise due to confusion over where to send your payments.

In addition, credit unions may provide more specialization and advice when it comes to the type of loan you need. Navy Federal Credit Union, for example, specializes in loans for veterans and provides step-by-step guidance for those seeking a VA loan.

Easier approval

Potential homebuyers who don’t have a traditional profile, such as an excellent credit history, can benefit from getting a credit union mortgage, says Long. “(Credit unions) are more likely to make lower- and middle-income loans than other originators.”

Cons of getting a credit union mortgage

The benefits of credit unions aren’t as apparent when searching for mortgage rates, because credit unions don’t have the marketing scale banks have, which is why they generally don’t appear in searches for low rates, says Rich Arzaga, founder and CEO of The Real Estate Whisperer Financial Planning and Education in Monument, Colorado.

The cons of getting a mortgage through a credit union include:

Membership requirements

At banks, generally anyone with the right credit requirements can apply and qualify for a loan. Credit unions, on the other hand, require that you’re a member.

“Many credit unions have membership requirements based on their target market,” says Arzaga. If you don’t meet the requirements, you won’t be able to get a mortgage with that specific credit union.

That said, joining a credit union isn’t always as difficult as you may think. There are specific credit unions for alumni associations, communities, places of worship and other types of affiliations.

Some credit unions, like PenFed Credit Union, even offer nationwide membership to anyone who wants to join.

Lagging technology

If you’re looking for a mortgage lender with a first-rate online experience or intuitive technology, you may want to consider a bank or online institution instead of a credit union.

“For those who prefer to use technology for tracking their finances, credit union technology lags,” says Arzaga.

Tech functionality becomes an important consideration because credit unions don’t have as many local branches as regional or national banks, says Arzaga. That can be difficult when trying to access funds from out of state or out of the country.

“This technology gap becomes more apparent when a borrower wants to use an app that aggregates financial matters in one place,” says Arzaga. “Linking credit union accounts is not possible in some cases.”

Limited branch and ATM access

In general, most credit unions have a smaller geographical imprint than national banks.

Banking at an institution that lacks a national presence makes it more difficult to access funds when operating outside of their main area, especially if the credit union’s technology is lacking.

Some credit unions have a shared banking network with wide ATM access, but that’s not always the case.

Potentially higher overall cost

While they often provide great rates for their members, sometimes credit unions simply can’t compete with larger banks.

“For those who are inclined to only shop at credit unions, the biggest downside is that banks will periodically offer sharply lower mortgage rates,” says Arzaga. “When combined with minimum deposits that will lower the interest rate, the difference can be meaningful.”

That makes it important to shop at both credit unions and banks for mortgage rates.

Insurance

Federal Deposit Insurance Corporation (FDIC) insurance coverage does not extend to credit unions. The National Credit Union Association (NCUA) offers similar coverage, but it only extends to federally insured credit unions.

Unfortunately, if the credit union you’re considering is state chartered, the insurance coverage by the NCUA won’t apply. The credit union could be covered by a private policy or state agency, but the level of protection may not be the same.

Insurance coverage technically doesn’t impact mortgages. Still, it’s worth keeping in mind if you’re planning to open deposit accounts with the credit union.

Credit unions vs. bank mortgages: How to choose the right lender

Banks make up a large portion of the mortgage market, but don’t overlook credit unions when shopping for a lender. These member-owned institutions provide a number of benefits, such as lower rates, fewer fees and exceptional customer service.

“Credit union loans are a resource for those who want to avoid supporting banks (this is a strong preference for some), prefer to have a personalized experience and who seek preferred rates,” says Arzaga.

However, a bank could be a better fit if you aren’t a member of a credit union or prefer a financial institution that leverages technology to provide a more seamless lending and loan management experience.

Make sure to shop around at several mortgage lenders and choose one that best fits your needs and financial situation.

FAQ

Are credit unions safer than banks?

Both federally-insured credit unions and banks are safe places to keep your money. The NCUA backs credit union deposits of up to $250,000. The same coverage applies to bank deposits, but it’s provided by the FDIC.
Do credit unions sell mortgages to investors?

Credit unions generally keep their loans in house. However, it’s not uncommon for banks to sell mortgages to investors to boost liquidity and expand this line of business.
Can you get a home equity loan at a credit union?

Yes, you can get a home equity loan at some credit unions. This loan allows you to pull funds from your home equity and receive them in a lump sum. Many credit unions also offer home equity lines of credit (HELOCs) that give you access to home equity on an as-needed basis. Both offer competitive terms and are worth considering if you’re seeking a flexible funding solution.

Source: finance.yahoo.com

Apache is functioning normally

June 21, 2023 by Brett Tams

If you haven’t started your children or teens off with a kids checking account optimized for their needs, you’ll want to help your college student open a checking account before they begin school.

Opening a checking account for your child can teach them about money management and financial responsibility, along with providing them an easy way to make debit card purchases. It’s never too late to get started.

One advantage to helping your young adult open their first student checking account is they have more options than they might have when they were 16 or younger. Students over 18 can open a bank account with few restrictions.

But choosing a student checking account may give them access to higher interest rates and added features and benefits, along with fee-free checking, no monthly maintenance fees, and no minimum deposit to open an account.

12 Best Student Checking Accounts

Not surprisingly, many of the best student checking accounts come from banks that also offer some of the best checking accounts for any age. However, the products below – in most cases – are tailored for young adults from the ages of 18 to 24, with the features this age group desires most, including an intuitive mobile app and low or non-existent minimum deposit requirements.

1. Best for Students under 18: Capital One MONEY Teen

Most of the student bank accounts on our list exclude children under the age of 17 or 18. Capital One MONEY Teen checking is available to children ages 8 and up. It comes with all the benefits and security of a big bank, providing peace-of-mind. This includes access to Capital One branches and Capital One Cafes for in-person service. This account also serves as a great tool to teach your young adult the basics of banking.

Capital One MONEY Teen checking is a joint account with no monthly fee, no overdraft fees, and access to 70,000 ATMs with no fees. Plus, earn 0.10% on all balances, including those in checking.

You can link Capital One MONEY Teen checking to any other bank account through any bank or neobank, making it easy to transfer money to your teen while they are away at college. Plus, you can keep tabs on their spending with their linked account in the Capital One mobile app.

When they graduate, your teen can hold onto their MONEY account or transfer the funds into a top-rated Capital One 360 Checking account of their own.

2. Best for Working Students: Chime

Chime is not a bank. It’s a financial technology company and mobile app backed by Stride Bank, NA, and The Bancorp Bank. Many features make it perfect for working students. First, you can receive your paycheck up to two days earlier than you might at other banks with ACH deposit.

Plus, you can set up automatic transfers to your linked Chime Savings account, helping you to establish good financial habits early on. Simply set up Chime to transfer a percentage of your paycheck into your Savings Account every time you receive a direct deposit.

When you use your debit card for purchases, the “Save When You Spend” program rounds up your purchase and transfers the difference directly into savings. That small change can really add up, whether you’re saving for your first apartment after college, a new car, or your next tuition bill.

For working students looking to build their credit, Chime gives account holders access to a Credit Builder Secured Visa, with no annual fee, no credit check, and no security deposit required. Instead, the credit account is secured by your Chime checking account with monthly direct deposits.

Like many of the best student bank accounts on this list, Chime has no overdraft fee, no monthly service fee, no ATM fee for in-network ATMs, and no minimum balance requirements.

3. Best Account Opening Bonus: Chase College Checking

Chase Bank has been handing out student account opening bonuses like they hand out lollipops at their branches lately. College students ages 17 to 24 can snag a $100 bonus when they open an account online or at a local branch (students age 17 will need to visit a branch). You’ll just need to make 10 qualifying transactions within the first 60 days of opening the student bank account.

What’s a qualifying transaction? Virtually anything, according to the Chase website, including debit card purchases, online bill payments, Chase QuickDeposits, Zelle transfers, and ACH credits. Bank as you normally would, and you should easily earn that $100.

In addition to the generous sign-up bonus, Chase College Checking has no monthly fees for college students for up to five years, access to 16,000 ATMs and 4,700 branches across the U.S., and zero liability protection for unauthorized debit card purchases.

Chase Overdraft Assist covers purchases that exceed your account balance. You’ll pay no overdraft fee if you’re overdrawn by $50 or less at the end of the next business day.

4. Best for Yield: Ally Interest Checking

Ally Bank is the first bank on our list not designed specifically for students, but the vast array of features in this interest bearing checking account makes it ideal for young adults.

Ally Bank offers an APY of 0.25% on checking account balances and 4.00% APY on balances in a linked Ally Bank savings account. Neither account has any monthly fees.

Ally offers several features to help those on a tight budget manage their money. You can organize your money into spending and saving buckets, which can help you see exactly where your money goes each month. Ally will also review your bank accounts and help you find opportunities to save, and shuttle that extra money into your high yield Ally savings account.

Customers who have deposited $100 or more into their Ally checking account, or $250 via direct deposit, gain access to Ally’s CoverDraft service after 30 days. This protection covers up to $100 or $250 in charges that would overwise overdraft your account. Some purchases, including Zelle transfers, or ATM withdrawals, may be declined if they would put your account into overdraft.

Ally has no monthly maintenance fee, no overdraft fees, no ATM fee for in-network ATM transactions and no minimum balance requirement.

5. Best for Referrals to Earn Extra Cash: GO2bank

GO2bank, the digital bank associated with the top financial technology company Green Dot, offers an easy, straightforward money account with overdraft protection up to $200 with eligible direct deposits. The linked savings account pays a high 4.5% APY, with no fees for qualifying customers and no minimum balance requirement.

You can get regular ACH deposits from your job or side gigs up to two days earlier than most traditional banks. If you receive government benefits, such as Social Security, you can receive those deposits up to four days early.

Your GO2bank account will have a monthly service fee that costs $5 per month, unless you have a qualifying direct deposit that month. You will also pay fees for transfers from a linked debit card from another bank or fintech, mobile check deposits, and cash deposits.

If you are the type of person with friends who come to you for advice, you can earn $50 for each friend you refer to GO2bank who signs up with direct deposit. Your friend will also earn $50. You can use this offer for up to 30 friends, yielding $1,500 annually. This makes a GO2bank account great for social media influencers or college students with a large friend group.

6. Best for Full-Service Banking: Bank of America Advantage SafeBalance Banking

Bank of America Advantage checking accounts offer options for people in various stages of their financial life. College students might be best to start out with Bank of America Advantage SafeBalance banking, a straightforward money account with no overdraft fee and no checks.

The account has no monthly fee for students under the age of 25 or customers under the age of 18. Preferred Rewards customers also receive free checking. There is a $25 minimum deposit to open an account.

New Bank of America customers can earn a $100 account opening bonus when they open an account and set up direct deposits of $1,000 or more within 90 days.

7. Best for Comprehensive Money Management: PNC Virtual Wallet Student

Money Magazine named the PNC Virtual Wallet on its best banks for students list three years running. PNC Bank divides this mobile account into three separate accounts for everyday spending, “reserve,” or short-term savings, and “growth” for long-term savings.

The account has no monthly service fee for students for up to six years, along with all the benefits of a regular PNC Virtual Wallet. Additionally, students receive a courtesy refund of your first overdraft fee on your Spend account, one free incoming domestic or international wire transfer per statement period, and free paper statements if you opt in to receive them.

Once six years have passed or you are no longer a student, your account converts into a regular PNC Virtual Wallet, which may have associated monthly fees. Check the PNC website at that time to determine the fees and how you can waive them.

Your PNC Virtual Student Wallet pays a 0.01% APY on money in your Reserve account, and .02% on account balances up to $2,499 in your Growth account, with .03% APY on balances over $2,500. These may not be the best rates available, but the reputation of PNC Bank, along with the money management features in a Virtual Wallet Student account, make this an account worth considering for students just learning to budget.

8. Best for Establishing Savings Habits.: Wells Fargo Clear Access Banking

As one of the Big Four banks in the U.S., Wells Fargo offers a reliable and safe place to store your money, plus access to thousands of branches nationwide.

The Wells Fargo Clear Access banking account is great for teens and college students, since it’s available for account holders ages 13 to 24. Anyone under the age of 18 will need to open their account in a branch and anyone younger than 17 must have an adult aged 18+ as a joint account holder. The account has no monthly maintenance fee for anyone 24 or younger. A $25 minimum opening deposit is required.

Wells Fargo Clear Access banking is a simple, straightforward money account with no checks and personalized service at Wells Fargo branches. There are no overdraft fees with the account, but also no overdraft protection. Transactions that exceed the account or minimum balance amount will be declined, which helps put teens and young adults in charge of their money.

You can link your Clear Access bank account to a Way2Save Savings account and earn a 0.15% APY. You can establish good money habits by setting up automatic savings. Wells Fargo will transfer $1 from your Clear Access account into your checking account each time you use online bill pay or use your debit card for a one-time purchase. You can also transfer as little as $25 per month or $1 per day into your account to see your savings grow even faster.

9. Best for Cash Back: Discover Cashback Debit

The Discover Cashback Debit account may not be marketed to teens and students, by name. But, it’s enticing to anyone looking for a standard checking account with no monthly service fees and 1% cashback on debit card purchases, up to $3,000 per month. It’s highly unlikely for most college students to max out that free money (unless they are putting housing, tuition, and car expenses on their card).

Discover Cashback! debit card offers many of the benefits you’d expect from these top-rated money accounts, including early direct deposit, 60,000+ no-fee ATMs, and overdraft protection from your linked Discover Savings with no fees. Discover charges no fees for insufficient funds, bank checks, regular checks, or expedited delivery of a replacement debit card.

These features make it one of the most convenient accounts you can hold. Plus, you don’t have to worry about “aging out” of the account and facing fees for a non-student bank account. Your Discover Cashback Debit account will be free no matter your age. Link it to a Discover Savings Account to earn 4.0% APY with no minimum deposit required.

10. Best for Unlimited Out-of-Network ATM Fee Reimbursement – Axos Bank Rewards Checking

Another bank account not marketed to students but meeting all their needs is the Axos Bank Rewards Checking account. This account has no monthly fees. It also reimburses ATM fees for out-of-network ATMs nationwide, which is great for students who travel domestically or who don’t have ATMs in their network on campus.

Pay no overdraft fee or non-sufficient funds fees with this account. Best of all, earn an APY of 0.40% on your checking balance if you receive monthly direct deposits of $1,500-plus. Young investors can ramp up their interest rate by 1% with an average daily balance of $2,500 in an Axos Invest Managed Portfolio Account, plus another 1% by holding $2,500 in a self-directed trading account. If you take out a loan through Axos, you can add another 0.60% to your APY.

College students likely won’t regret opening an Axos Bank account to take them through adulthood, especially with options for investing, low mortgage rates, car loans, and more.

Plus, earn a welcome bonus when you open an account and have direct deposits of at least $1,500 within a single calendar month during the first three months of account opening.

11. Best Credit Union: Alliant Credit Union Teen Checking

Alliant Credit Union offers a teen checking account for minors ages 13 to 17. The account is insured up to $250,000 per account holder by the National Credit Union Administration (NCUA). The adult account holder must be an Alliant Credit Union member. But it’s easy to join by depositing $5 into an Alliant Credit Union saving account. Alliant Savings earns an APY of 0.25%.

The teen checking account has no overdraft fees or non-sufficient funds fee. It also has no monthly fees or minimum balance requirements. Account holders gain access to 80,000+ fee free ATMs nationwide plus $20 per month in ATM fee reimbursement for out-of-network ATM use. This is an interest earning checking account which also pays 0.25% APY on all balances as long as you have at least one deposit, via ACH direct deposit, mobile check deposit, or transfer from another bank or credit union, each month.

12. Best for Young Shoppers: Varo Bank

Varo Bank is another account not necessarily marketed to college students but definitely optimized for their needs. The Varo Bank debit card delivers up to 6% cash back, with money deposited into your Varo account as soon as you accrue $5 in rewards.

Like many of the best student accounts on this list, Varo has no monthly fee, no minimum balance requirements, and no overdraft fee. If you need money before payday, you can use Varo Advance, an interest-fee program that allows you to borrow up to $250 and pay it back within 30 days. You will not pay fees to borrow less than $20. Borrowing up to $250 comes with fees that can be as high as $15, depending on the amount of cash advance you need.

Varo Bank uses the Allpoint network of ATMs, with fee free access to 55,000+ ATMs nationwide. Using other bank ATMs could result in charges up to $3 from Varo and fees charged by the other banks, as well.

It pays to open a linked Varo Bank savings to take advantage of a high 3% APY. Account holders with direct deposits equal to $1,000 per month and a positive balance in their Varo checking and savings can earn up to 4% APY.

One of the best things about a Varo account is it can grow with you. You won’t pay additional fees as an adult out of college, so you can keep the same bank account you started with for your entire life if you want.

Methodology: How We Select the Best Student Checking Accounts

To find the best student checking accounts, we evaluated the monthly maintenance fees, ATM fees, minimum deposit requirements, features, benefits, banking services provided, along with customer service and mobile app access at several of the biggest and most well-known banks and credit unions.

ATM Network

Most banks have ATM networks or partner ATM networks of 20,000 or more ATMs nationwide where you can use your debit card with no ATM fees. You might be surprised to learn that even online banks and financial technology companies that are not a bank provide access to thousands of ATMs nationwide through partner programs.

Nationwide availability (physical locations or mobile access)

College students often split time between their college campus and the home where they grew up. Finding a bank with physical locations in the areas they live or an online bank that provides a mobile banking app with fee free mobile banking from anywhere is important.

Fees and minimum requirements

Bank fees no longer have to be a way of life for today’s young adults. We chose financial institutions with no monthly maintenance fees or easy ways to waive maintenance fees.

Benefits such as high APY, cash-back rewards, or other additional perks

Student checking accounts today are more than just “bare bones” places to store your cash. Many student bank accounts offer perks, benefits, and high-yield savings or an interest bearing checking account to provide added value.

Overdraft fees

Cash management mistakes happen, especially when young adults first start learning to budget and manage their finances. Many banks have no overdraft fees and some offer overdraft protection to help out in a pinch.

How to Choose the Best Bank for College Students

We’ve offered 12 solid options to help you choose the best student checking account. Before you open a student bank account, it’s a good idea to think about what you need in your primary checking account and a linked savings.

The list below makes it easy to review your must-haves and nice-to-haves when you choose your first bank account as a college student.

Best student checking account interest rates

If you’re looking to earn interest on your standard checking account, many banks offer this feature. Review annual percentage yield (APY) figures for your top choices.

Remember, a higher savings interest rate might benefit you more, since money in your checking account tends to fluctuate based on paychecks, bills, and expenses. The best checking account may not pay interest, but can save you money in other ways.

Annual Percentage Yield (APY)

Likewise, you can put money in your pocket with an account with linked savings offering a high annual percentage yield (APY).

Mobile Check Deposit

If you get paid via paper checks, you’ll want to find an account with a mobile app that offers mobile check deposit. Find out how fast deposits clear, and if mobile banking services are fee free.

No Monthly Maintenance Fees

Many banks today make it easy to find a free checking account with no maintenance fees. If you have to pay a monthly maintenance fee, find out exactly what you’re getting for your money. Find out if the perks and benefits, such as a cash back debit card or reimbursement of ATM fees make the maintenance fees worthwhile.

Minimum Deposit and Minimum Balance Requirements

When you’re just getting started, cash may be tight. It’s important to find an account with no minimum deposit to open.

Banking Services Provided

Accounts should have customer service online, by phone or in branches, plus an easy-to-use mobile app and a debit card with no ATM fees.

FAQs About Student Checking Accounts

Read what people are asking about the best student checking accounts, including minimum deposit requirements and benefits of a student checking account.

What are the benefits of a student bank account?

A bank account tailored for students gives young adults a head start on their financial future and learning how to manage money. For students who work, they can receive direct deposits in their student account, pay bills online, and send money to friends and family using Zelle.

How to get a student checking account bonus?

Several student checking accounts, including Chase, provide sign-up bonuses. Make sure to read the fine print and complete the requirements, which may include setting up direct deposit or making a minimum opening deposit, to collect the bonus.

Can I open a student checking account without a deposit?

To open a student checking account without a minimum deposit amount, simply look for a bank account, like Varo, that has no minimum opening deposit.

Are there any downsides to opening a student checking account?

When you open a student checking account, you’ll want to make sure you won’t pay monthly maintenance fees. Some student checking accounts convert to a regular account once the student graduates, and there may be fees associated with the regular account.

Is there an age limit on a student checking account?

Most student checking accounts are open to students from the age of 18 to 24 without a joint account holder. Customers under the age of 18 may be able to open an account with a joint owner.

Can minors open student checking accounts?

Accounts like Capital One Money Teen are available to children ages 8 and up with a joint account holder. Some other accounts require students to be 18 or older.

What happens to your student checking account when you graduate?

Many of the student bank accounts on this list won’t change when you graduate college. Others offer the option to convert your account to one of the bank’s regular checking products. A Chase College Checking Account has no monthly fees for your first five years in college, but if you graduate or exceed that time frame, you might pay a $6 monthly maintenance fee unless you meet other requirements.

Source: crediful.com

Apache is functioning normally

June 21, 2023 by Brett Tams

Opening a bank account online has not only become an effortless task but also a smart move towards managing your finances with ease. This guide will help you understand the benefits, requirements, and steps to transition your banking experience into the digital realm.

This will give you control and accessibility like never before. Embrace the future of banking today and discover how opening a bank account online can be a game-changer for your financial journey.

Understand Your Banking Needs

Determining your banking needs is a crucial first step in choosing the right account. Are you looking for a secure place to deposit your paycheck, withdraw cash, and manage your bills? A checking account could be your answer. It’s an excellent tool for everyday transactions, providing features like check writing, debit card access, and often, the ability to set up direct deposits.

Alternatively, if you have a financial goal in mind, such as saving for a down payment or creating an emergency fund, a savings account could be more suitable. These accounts typically offer higher interest rates compared to checking accounts, allowing your money to grow over time.

It’s worth noting that many people maintain both checking and savings accounts. The checking account serves as a hub for daily transactions, while the savings account functions as a reservoir for longer-term savings and investment goals. Your specific mix will depend on your personal financial needs and goals.

Choosing the Right Bank

Finding the right bank depends on your individual needs and preferences. There are three main types of banks to consider: traditional banks, credit unions, and online banks.

Traditional banks offer a wide array of services like various types of accounts, credit cards, and loans. They are great if you prefer having in-person access to services and a large network of ATMs.

Credit unions are member-owned and often excel in customer service. They generally offer better interest rates on savings accounts but may have less online and physical accessibility than traditional banks.

Online banks operate purely online, which often allows them to offer lower fees and higher interest rates. They’re a good choice if you’re comfortable doing all your banking digitally.

No matter which type of bank you choose, make sure it’s FDIC insured to protect your money. Also, consider the bank’s fees, such as monthly service and ATM fees, as they can add up over time. A bank with fewer fees or options to waive them could save you money.

Requirements for Opening a Bank Account Online

Once you’ve decided on your banking needs and the financial institution, it’s time to gather the necessary information to open your bank account online.

Most financial institutions will require:

Personal Information: Your legal name, date of birth, and Social Security number.
Contact Information: A valid mailing address and phone number. Banks typically require these to verify your identity and as part of their communication and security protocols.
Identification: A valid form of identification such as a driver’s license, state ID, or passport. You may need to provide the ID number and expiration date.
Initial Deposit: Some banks may require an initial deposit to open the account. You can usually fund this by transferring money from an existing account or using a credit or debit card.

Before starting, it’s helpful to check the specific requirements of your chosen bank, as requirements may vary from one financial institution to another.

Step-by-Step Guide on How to Open a Bank Account Online

Taking your banking experience online might seem intimidating initially. However, the process is typically straightforward, taking just a few minutes. Follow this step-by-step guide to set up your bank account online.

Visit the bank’s website: Begin by visiting the official website of your chosen bank or credit union. Look for the “Open an Account” or “Apply Now” option, typically found in the main navigation or home page.
Fill out the application form: The bank will prompt you to fill out an application form requiring your personal information. This includes your full name, mailing address, and Social Security number. You may also need to provide a valid form of identification and employment information.
Verify your identity: As part of the process, you’ll be asked to verify your identity. This could involve answering security questions based on your credit history or providing a valid ID. This step is crucial to protect against identity theft and fraud.
Fund your account: Most banks require an initial deposit when opening a new account. You can fund your account via a transfer from an existing bank account, a credit or debit card, or even a check. The required deposit varies from bank to bank, with some online banks allowing you to open an account with no initial deposit.
Confirm and finalize your account setup: Once you’ve completed these steps, you’ll receive a confirmation email or message from the bank. This message usually contains instructions on how to set up online banking, including setting up your username and password.

What to Do After Opening Your Account

With your bank account online set up, it’s vital to get acquainted with all its features and maximize them for your convenience and financial growth.

Set up direct deposit: Direct deposit is a crucial feature to set up as soon as your account is active. It allows your paycheck to be automatically deposited into your account, saving you from manual deposits and giving you quicker access to your money.
Learn to use online banking features: Familiarize yourself with key online banking features. Bill pay, for instance, can automate your monthly payments, ensuring timely transactions without manual intervention. Mobile check deposit lets you deposit checks without the need to visit a bank branch, and the money transfer feature enables seamless transfer of funds between accounts or to friends and family, making your banking experience both quick and hassle-free.
Regularly review your account statements: Regular monitoring of your account statements is a good financial habit. It helps track your spending, review any account fees, and promptly detect any suspicious activity or discrepancies. This practice keeps you aware of your financial status and ensures the security of your account.

The Importance of Regularly Reviewing Your Banking Needs

As life unfolds and your circumstances evolve, so too do your banking needs. Major life events – a career shift, marriage, welcoming a child, or even retirement, could alter your financial landscape significantly.

Perhaps a job change comes with a pay increase, necessitating a better savings strategy, or marriage might call for a joint account. A new child could lead you to start a college savings account. These changes underscore the importance of regularly reassessing your banking arrangements.

Every few years, or at the occurrence of significant life events, it’s beneficial to review your banking needs. This regular review ensures your financial arrangements align with your life’s dynamics, ensuring your money is working for you at every stage.

Bottom Line

Opening a savings or checking account online is an easy and efficient process, offering you the freedom to manage your finances at your fingertips. But remember, the process doesn’t stop with opening an account.

Make sure to fully utilize the features of your online account, keep a close eye on your statements, and adjust your banking needs as your life changes. Stay informed and proactive in your approach to banking – this way, you ensure that your online bank account serves you effectively in every phase of your financial journey.

Frequently Asked Questions

Can I open a bank account online without a deposit?

Yes, certain banks allow you to open an account with no opening deposit. However, they may require you to fund the account within a specific time frame to keep it active.

What should I do if I don’t have a Social Security number?

If you’re an international resident without a Social Security number, you might still open a bank account using an Individual Taxpayer Identification Number (ITIN), passport, or other forms of identification. It’s advisable to contact the bank directly for their specific requirements.

How old do I need to be to open a bank account online?

Typically, the minimum age to open a bank account online is 18. For those under 18, many banks offer the option of joint accounts with a parent or guardian, or specific accounts designed for minors.

Can I open multiple bank accounts online?

Yes, you can open multiple bank accounts online, including a mix of checking and savings accounts, depending on your financial needs. It’s important to consider potential monthly fees and the ease of managing multiple accounts.

Is it safe to open a bank account online?

Opening a bank account online is generally safe as long as you’re using a secure network and are applying through the official website of a reputable bank or credit union. Always look for indications of security, like the “https” at the beginning of the web address.

What should I do if I face issues while opening a bank account online?

If you encounter any issues while opening a bank account online, the best course of action is to contact the bank’s customer service for assistance. They can guide you through the process or resolve any technical glitches you might be facing.

Source: crediful.com

Apache is functioning normally

June 20, 2023 by Brett Tams

We all want to save as much of our hard earned money as we can. Luckily for those shopping for a mortgage, there are several steps you can take to ensure you are saving money and getting the best deal possible.

Step 1: Get Lots of Estimates

Home loans are available from many different types of lenders, such as credit unions, big commercial banks, private mortgage companies, and thrift institutions. It’s worth your time to contact various types of lenders to see which has a program that best fits your needs.

Most of these lenders have forms that you can fill out online to get a custom rate estimate. If they don’t, you can always shoot them a call to give them your information. Make sure you give each lender the same personal information so that you can compare rates directly. Most lenders will require you to give them different variations of the following information:

Your name
The loan amount
Your social security number (so they can get your credit score)
The address and price of the house you want to buy
Your income

When you compare rates, make sure that you are comparing the same type of loan (the rates for a 30-year fixed will be different than a 15-year adjustable loan). Also, rates change frequently so try to compare them on the same day to get the most accurate information.

Another thing to consider is working with a mortgage broker who will help you find a lender and arrange transactions. They usually have connections with lots of lenders and can provide you with a wide variety of products and terms—for a fee. However, like lenders, you should consider contacting more than 1 broker to ensure that you are getting the best deal.

Step 2: Know the Costs Involved With Taking out a Mortgage

Unfortunately, there are some lenders out there who play games. They might offer you a lower rate but compensate by giving you higher closing costs (or vice versa). Instead of falling for their tricks, it is important to know all of the fees involved with taking out a mortgage so that you can insure you’re getting the best deal.

Rates:

Every mortgage will have a mortgage rate, or the rate of interest that a lender will charge you on your loan. They normally come in fixed or adjustable options. With a fixed interest rate, you will be paying the same amount of interest throughout the life of your loan. With an adjustable rate, your rate will remain fixed for a certain period of time and then adjust at intervals according to the benchmark interest rate.

Another factor that adds to your monthly interest is the annual percentage rate (APR). APRs are based on credit charges, broker fees, and points. Be sure to ask your lender how much you will be paying per month in APR.

Points:

Points are fees paid to a lender for the loan. Each point is equivalent to 1% of the loan amount and there are two types.

Origination points are used to pay loan officers for their efforts in closing a loan for you. Ask lenders how many origination points you will have to pay for the loan as these will add to your total cost.

Discount points are paid up front in exchange for a lower interest rate. Usually if you buy one point the lender will lower the interest rate by around 0.25%. These can be used to decrease your long-term cost.

Private Mortgage Insurance:

Some lenders offer low down payment options. However, if you put less than 20% down, it is likely that they will make you get private mortgage insurance (PMI) to protect them from damage if you default on the loan. PMI will add to your monthly payment, so be sure to ask if you need to take it out.

Closing Costs:

Closing costs are all the fees related to getting your loan. These include title search and insurance, appraisal fees, government recording and transfer fees, and escrow charges. Lenders are required to estimate these closing costs accurately using a “good faith estimate” so be sure to ask for one.

Step 3: Compare Lenders and Choose One

Now that you know the fees involved with taking out a mortgage, compare your potential lenders. Though obtaining the best deal financially will likely be a priority, make sure you also consider these three things below.

Prepayment Penalties

Some lenders charge borrowers a fee if they pay off their loan early. There are two types of prepayment penalties. A “soft” penalty is only charged if the borrower pays back the loan early with a refinance while a “hard” penalty is charged if the loan is payed back for any reason. Be sure to ask if your loan has a prepayment penalty, especially if you don’t plan on staying in your house for the entire life of the loan.

Rate Lock Period

When a lender offers you a rate, they will usually designate an amount of time in which you have to close loan and receive the rate, called the “rate lock period.” A longer lock period will give you more time to complete the process, and since most of us are pretty busy, this can be helpful. Some lenders charge a fee if you ask to extend the rate lock period, so make sure you ask lenders if they do.

Comfort with a Loan Officer/ Lender

The mortgage process can be tedious, so you want to be sure that you are working with a loan officer that you trust to get the job done in a timely and accurate manner. A slightly lower rate might look appealing, but it may not be worth it if it comes from an untrustworthy source.

Step 4: Negotiate

Many prices that come with a mortgage can be negotiated, especially since you can use all the offers you got from other lenders to increase your bargaining power. Even if your lender doesn’t lower their prices, it doesn’t hurt to ask. You can’t negotiate about transfer taxes, appraisal fees, and government recording fees, however, you can negotiate interest rates and closing costs.

Now that you know how to find yourself the best deal, it’s time to get started. Be sure to check out what Total Mortgage can offer you at https://www.totalmortgage.com.

Source: totalmortgage.com

Apache is functioning normally

June 19, 2023 by Brett Tams

A couple of important mortgage rates sank over the last seven days. 15-year fixed and 30-year fixed mortgage rates both trended lower. At the same time, average rates for 5/1 adjustable-rate mortgages increased.

After hiking interest rates 10 times since March 2022, the Federal Reserve pumped the brakes during its June meeting. The central bank’s benchmark federal funds rate will remain at a range of 5.00% to 5.25% for the time being, although the Fed hasn’t ruled out the possibility of further increases if inflation doesn’t continue to moderate.

As long as inflation continues to trend downward, experts say a pause in rate hikes from the Fed could bring some stability to today’s volatile mortgage rate market.

Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

Mortgages hit a 20-year high in late 2022, but now the macroeconomic environment is changing again. Rates dipped significantly in January before climbing back up in February. Aside from a brief surge towards the end of May, rates continue to fluctuate in the 6% to 7% range.

Even though the Fed hit pause on rate hikes, mortgage interest rates will continue to fluctuate on a daily basis. That’s because mortgage rates aren’t tied to the federal funds rate in the same way other products are, such as home equity loans and home equity lines of credit, or HELOCs. Mortgage rates respond to a variety of economic factors, including inflation, employment and the broader outlook for the economy.

“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree. “I don’t anticipate them to spike or even show a sustained spike following this meeting,” Channel said.

Overall, inflation remains high but has been slowly, but consistently, falling every month since it peaked in June 2022.

After raising rates dramatically in 2022, the Fed opted for smaller, 25-basis-point increases in its first three meetings of 2023. The decision to hold rates steady on June 14 suggests that inflation is cooling and ongoing rate hikes may no longer be necessary to bring inflation down to the Fed’s 2% target. The central bank is unlikely to cut rates any time soon, but positive signaling from the Fed and cooling inflation may ease some of the upward pressure on mortgage rates.

“Rates are getting to a point of being steady. So, it’s more a question of how long it will take for rates to start ticking back down and when inflation will return to a place where your dollar starts buying a little bit more each month,” said Kevin Williams, founder of Full Life Financial Planning.

However, mortgage rates remain well above where they were a year ago. Fewer buyers are willing to jump into the housing market, driving demand down and causing home prices in some regions to ease, but that’s only part of the home affordability equation.

“Interest rates have been much higher in the past and people bought homes and financed homes at those rates. But it’s been hard for people to react to such a rapid increase in just a short amount of time,” said Daniel Oney, research director at the Texas Real Estate Research Center at Texas A&M University. “Everybody had a target for how much they needed to save in order to go into the housing market, but when interest rates increased, those goal posts moved too,” he added.

What does this mean for homebuyers this year? Mortgage rates are likely to decrease slightly in 2023, although they’re highly unlikely to return to the rock-bottom levels of 2020 and 2021. However, rate volatility may continue for some time. “Expect mortgage rates to yo-yo up and down in the first half of the year, at least until there is a consensus about when the Fed will conclude raising interest rates,” said Greg McBride, CFA and chief financial analyst at Bankrate. McBride expects rates to fall more consistently as the year progresses. “Thirty-year fixed mortgage rates will end the year near 5.25%,” he predicts.

Rather than worrying about market mortgage rates, homebuyers should focus on what they can control: getting the best rate they can for their situation.

“The most important thing is that they find the right home. The second most important thing is obviously to find the most efficient way to finance it,” said Melissa Cohn, regional vice president of William Raveis Mortgage.

Take steps to improve your credit score and save for a down payment to increase your odds of qualifying for the lowest rate available. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you compare apples to apples.

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 7.00%, which is a decline of 6 basis points from seven days ago. (A basis point is equivalent to 0.01%.) Thirty-year fixed mortgages are the most common loan term. A 30-year fixed rate mortgage will usually have a lower monthly payment than a 15-year one — but typically a higher interest rate. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 6.41%, which is a decrease of 4 basis points from seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a larger monthly payment. But a 15-year loan will usually be the better deal, if you can afford the monthly payments. You’ll usually get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 adjustable-rate mortgage has an average rate of 6.13%, an increase of 5 basis points compared to a week ago. For the first five years, you’ll typically get a lower interest rate with a 5/1 adjustable-rate mortgage compared to a 30-year fixed mortgage. However, you might end up paying more after that time, depending on the terms of your loan and how the rate shifts with the market rate. Because of this, an adjustable-rate mortgage could be a good option if you plan to sell or refinance your house before the rate changes. If not, changes in the market could significantly increase your interest rate.

Mortgage rate trends

Mortgage rates were historically low throughout most of 2020 and 2021 but increased steadily throughout 2022. Now, mortgage rates are roughly twice what they were a year ago, pushed up by persistently high inflation. That high inflation prompted the Fed to raise its target federal funds rate seven times in 2022. By raising rates, the Fed makes it more expensive to borrow money and more appealing to keep money in savings, suppressing demand for goods and services.

Mortgage interest rates don’t move in lockstep with the Fed’s actions in the same way that, say, rates for a home equity line of credit do. But they do respond to inflation. As a result, cooling inflation data and positive signals from the Fed will influence mortgage rate movement more than the most recent 25-basis-point rate hike.

We use information collected by Bankrate to track rate changes over time. This table summarizes the average rates offered by lenders across the country:

Current average mortgage interest rates

Loan type	Interest rate	A week ago	Change
30-year fixed rate	7.00%	7.06%	-0.06
15-year fixed rate	6.41%	6.45%	-0.04
30-year jumbo mortgage rate	7.03%	7.06%	-0.03
30-year mortgage refinance rate	7.13%	7.16%	-0.03

Rates as of June 19, 2023.

How to find personalized mortgage rates

To find a personalized mortgage rate, meet with your local mortgage broker or use an online mortgage service. When looking into home mortgage rates, consider your goals and current finances.

A range of factors — including your down payment, credit score, loan-to-value ratio and debt-to-income ratio — will all affect your mortgage rate. Generally, you want a higher credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate.

Apart from the mortgage interest rate, other factors including closing costs, fees, discount points and taxes might also impact the cost of your house. Make sure to shop around with multiple lenders — such as credit unions and online lenders in addition to local and national banks — in order to get a mortgage loan that’s best for you.

What’s the best loan term?

One important thing to consider when choosing a mortgage is the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Mortgages are further divided into fixed-rate and adjustable-rate mortgages. For fixed-rate mortgages, interest rates are the same for the life of the loan. For adjustable-rate mortgages, interest rates are the same for a certain number of years (most frequently five, seven or 10 years), then the rate adjusts annually based on the market rate.

One factor to think about when deciding between a fixed-rate and adjustable-rate mortgage is the length of time you plan on living in your house. For people who plan on staying long-term in a new house, fixed-rate mortgages may be the better option. Fixed-rate mortgages offer greater stability over time compared to adjustable-rate mortgages, but adjustable-rate mortgages might offer lower interest rates upfront. If you aren’t planning to keep your new home for more than three to 10 years, though, an adjustable-rate mortgage might give you a better deal. The best loan term is entirely dependent on your specific situation and goals, so make sure to think about what’s important to you when choosing a mortgage.

Source: cnet.com

Apache is functioning normally

June 19, 2023 by Brett Tams

Check cancellation, also known as a ‘stop payment request’, is a procedure initiated by an account holder instructing their financial institution to prevent payment on a check that has yet to be processed.

There are a variety of reasons why one might choose to cancel a check. From preventing a fraudulent check cashing, misplaced personal checks, to stop payments to an erroneous recipient, each scenario can merit a cancel request.

Risks and Limitations of Canceling a Check

Before initiating a stop payment, it’s important to understand the risks and limitations associated with this action. The most immediate consideration is the stop payment fees. Most banks and credit unions charge a fee for this service.

Additionally, there’s a time limitation for canceling a check. If the check has already been cashed or deposited into the recipient’s account, you may not be able to stop the payment. Therefore, it’s essential to act in a timely manner to ensure the effectiveness of your request.

How to Cancel a Check

Canceling a check can feel like a daunting task, especially if it’s your first time doing so. Fortunately, the process is relatively straightforward. Here’s what you need to do to cancel a check:

Verify the Check’s Status – Has It Cleared Yet?

Before initiating a stop payment request, your first step should be to determine whether the check in question has already cleared. A check that has cleared has been cashed or deposited by the recipient and the funds have been deducted from your account.

You can verify the status of your check by reviewing your transaction history through your online account or mobile banking app, or by calling your bank’s customer service. If the check has already cleared, it’s too late to stop the payment. However, if it hasn’t, you can proceed with the stop payment process. This crucial step can save you from unnecessary stop payment fees if the check has already cleared.

Contact Your Bank or Credit Union

The first step in canceling a check is to contact your financial institution promptly. Whether you bank with a credit union or a traditional banking institution, you’ll need to initiate the stop payment process as soon as you realize the need to cancel a check. Time is of the essence when it comes to preventing the payment of a potentially lost, stolen, or miswritten check.

Most financial institutions offer a variety of ways for you to contact them. This includes phone, in-person visits, online banking portals, or even mobile apps.

Information You’ll Need

Regardless of the method you choose to cancel a check, you’ll need specific information to initiate the process. Be prepared to provide the following:

Account Number

Your account number is essential in helping the bank or credit union identify which account the check is drawn from. You can typically find your account number on your bank statements, within your online account, or at the bottom of your checks.

Check Number

The check number helps the financial institution identify the exact check you wish to cancel. It can be found in the top-right corner of the check and is also printed at the bottom, right next to the account number.

Amount and Payee

You’ll need to know the exact amount the check was written for, as well as who the check was made out to, i.e., the payee. These details ensure that the bank cancels the correct check.

Confirmation of Stop Payment Request

Once you’ve provided the necessary information and initiated the stop payment request, your bank or credit union will typically provide a written confirmation of your request. This may be given in person, sent via mail, or provided digitally, depending on your chosen method of request.

This written confirmation serves as proof that you’ve requested the stop payment. It will typically include details such as the date and time of the request, the check number, and the stop payment fee (if applicable). Make sure to keep this document in a safe place for future reference.

How to Avoid Needing to Cancel a Check

While knowing how to cancel a check is important, preventing the need to do so in the first place is even more critical. Implementing safe practices when writing and issuing checks and using secure alternatives can greatly minimize potential problems.

Safe Practices When Writing and Issuing Checks

Confirm the Recipient’s Details

Before writing a check, double-check the recipient’s details. Confirm that you have spelled their name correctly and that you have the correct address if you’re mailing the check. This can prevent checks from going to the wrong address or being unable to be cashed because of a misspelled name.

Encourage Prompt Cashing

Once you’ve written the check, encourage the recipient to cash or deposit it as soon as possible. The longer a check is uncashed, the higher the risk of it being lost or stolen. Also, an uncashed check can make accounting and balance tracking more challenging, as you need to remember to account for that uncashed check in your available balance.

Use of Electronic Payment Methods

Electronic payment methods are a convenient and secure alternative to physical checks. They reduce the risk of checks being lost or stolen and eliminate the need to write checks manually. Here are a few options:

Direct Deposit

Direct deposit is a popular method for paycheck distribution but can also be used for other types of payments. It eliminates the need for a physical check and ensures that the funds reach the intended recipient’s bank account directly.

Online Banking Services

Most banks and credit unions now offer comprehensive online banking services, which include the ability to send money directly from your bank account to another. These transactions are secure and can be done from the comfort of your home or on the go. Many financial institutions even offer the ability to set up recurring payments, making it an excellent option for paying bills.

Mobile Payment Apps

Mobile payment apps have soared in popularity in recent years. Services like Venmo, PayPal, and Zelle allow users to send and receive money quickly and securely. These apps can be linked directly to your bank account or credit card and provide a convenient way to transfer funds without needing to write a check.

How much does it cost to cancel a check?

The cost to cancel a check varies by financial institution. Some banks may waive stop payment fees for premium account holders, such as those with America Advantage Relationship Banking or Citi Priority. However, for regular checking accounts or money market accounts, the stop payment fee can range anywhere from $15 to $35.

How long do you have to cancel a check?

The time frame to cancel a check depends on the specific bank or credit union. However, most financial institutions recommend that you initiate a stop payment request as soon as you realize a check needs to be cancelled. The sooner you can report a lost or stolen check, the better your chances of preventing unwanted transactions.

Can you cancel a cashier’s check?

Stopping payment on a cashier’s check is generally more complicated than stopping a regular check. Because cashier’s checks are guaranteed by the issuing bank, they are often treated as cash. However, if a cashier’s check is lost or stolen, the bank may issue a stop payment after a waiting period, typically 90 days.

Conclusion

Canceling a check is an essential skill for anyone who writes checks. It requires understanding your bank account policies, knowing how to navigate your financial institution’s website or customer service, and being proactive about spotting any potential issues with your personal checks.

Remember to keep a close eye on your transaction history and balance in your checking account or high-yield savings accounts. This will help ensure your hard-earned money stays right where it belongs. Remember, it’s not just about knowing how to cancel a check, but also knowing how to prevent the need for cancellation in the first place.

Source: crediful.com

Apache is functioning normally

June 18, 2023 by Brett Tams

Company Webinars and Training, Internal Audit, CRM, Servicing, Marketing Tools; Another Lesson in “Don’t Fight the Fed”

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Company Webinars and Training, Internal Audit, CRM, Servicing, Marketing Tools; Another Lesson in “Don’t Fight the Fed”

By:
Rob Chrisman

Thu, Jun 15 2023, 11:08 AM

Here’s a couple informal reads on the economy. When I have a few extra ducats in my pocket, sometimes I’ll spring for the more expensive Shrimp Alfredo at Olive Garden instead of the cheaper Lasagna Classico. When Freedom Mortgage’s Stan Middleman is faced with a similar situation, instead of buying a couple seats near the dugout of the Philadelphia Phillies, he bought a piece of the entire team. I have some Tupperware that I never bought. You? My Mom went to Tupperware parties: Not expensive, lasts forever, people would have their favorites pieces, using it better than thousands of miles of plastic wrap clogging the landfills every year. But Tupperware is faltering. And so is San Francisco’s 127-year-old, iconic Anchor Brewing Company. The brewer of Anchor Steam, owned by Japan’s Sapporo, confirmed that it would not brew its beloved Christmas Ale this year due to time and cost constraints. America’s first microbrewer is planning to pull back its 50-state distribution footprint to just one: California, where the Anchor brand does roughly 70 percent of its business. (Today’s podcast can be found here and this week’s is sponsored by SimpleNexus, the homeownership platform that unites the people, systems, and stages of the mortgage process into one seamless, end-to-end solution that spans engagement, origination, closing, incentive compensation, and business intelligence. Today’s has an Interview with 1st Signature Lending’s Matt Bridgman on all aspects of the construction-to-permanent (CTP) space.)

Broker and Lender Services and Software

Last year, one man made headlines after turning $26 into $283K by correctly predicting the winners of 6 major championships. Now that’s one investment that certainly paid off. In today’s market, lenders are betting on their tech stacks to help them win big as well. But how do they know if their bets are paying off? PRMG recently set out to answer that question and found that TrustEngine’s Mortgage Coach platform beat out all other technologies and helped its users generate 237% more annual loan volume than their peers. Similarly, PRMG found $121M of fundings in just 9 months was directly attributed to TrustEngine’s Sales Boomerang. Are you looking for a safe bet that will help increase production volume and revenue? Read more about how PRMG LOs doubled down with Mortgage Coach and Sales Boomerang to win big.

“Now is the time for mortgage servicers to take full control of their businesses. While many servicers may believe they are already in control, those using yesterday’s servicing software are not. Success will require mortgage servicers to become disrupters, according to MortgageFlex. Consumers may drive it, technology partners may enable it, but the servicer is the only party that can actually do it. The three main reasons this has to happen now are changing compliance requirements, increasing prices and the need to provide a better borrower experience while controlling costs. If the software the servicer is currently using doesn’t make it easy, or even possible, to take control of their business, the only thing they’ll be able to do is what they have always done in the past. That won’t work. Contact John McCrea today to see what will work or visit us.”

Did your team, like so many others, let good retail marketing practices go by the wayside during the height of the refi boom? Are you now scrambling to reestablish or up your marketing game? You should copy smart lenders and talk to Velma! With Velma CRM, you have the power to effortlessly manage and automate your marketing campaigns. Whether you prefer to centralize the process and handle all the marketing for each loan officer or empower individual loan officers to log in and market for themselves, Velma has the marketing solution for you. Easy, automatic, and brand compliant. Learn more about Velma CRM so you can start marketing like a machine!

What’s an internal audit anyway and do you need one? An internal audit acts as a third line of defense for your mortgage operation. It provides comprehensive assurance based on the highest level of independence and objectivity to evaluate the effectiveness of management’s internal controls. This function should advise your mortgage operation on plans to achieve the company’s strategic, operational, financial and compliance goals. An effective internal audit should go far beyond just checking a compliance box; it should be an integral part of protecting your company. If you want to ensure you’re adhering to regulatory requirements and demonstrating good faith business practices, a Richey May internal audit is a good fit. If you’re looking to be Fannie Mae approved in the future or want to maintain your approved status, it’s required. If you’re unsure whether you need an internal audit, ask one of Richey May’s experts today or learn more here.

TPO Products for Brokers and Correspondents

AmeriHome Correspondent, backed by the strength and stability of Western Alliance Bank, continues to grow market share in the correspondent space. When you combine AmeriHome’s industry leading loan purchase platform with Western Alliance Bank’s warehouse lending and treasury management services, this is one “must-have” relationship for mortgage bankers of all shapes and sizes. IMBs and financial institutions alike benefit from AmeriHome’s Delegated and Non-Delegated options, full suite of conventional and government products, and Bulk, Bulk/AOT and Best-Efforts delivery options. They are currently running a pricing special for Purchase loan amounts of $200,000 or less and offer a stable of temporary rate buy-down options. Check out their Upcoming Events page for details on where they’ll be this summer, find your sales rep here or send them an email to learn more about the advantages of partnering with AmeriHome.

Company Sponsored Webinars and Training

“Register for QC Industry Trends Webinar to learn how to navigate volatile financial landscape. ACES Quality Management just released its Q4 2022 Mortgage QC Industry Trends Report, showing defect rates declined 25.5% over Q3, while the annual defect rate remained above 2%. Join us for our QC Trends and Industry Insights webinar on June 28th at 11:00 AM PDT as ACES Quality Management’s President, Phillip McCall and EVP, Nick Volpe cover an analysis of the Mortgage QC Industry Trends Report, a deep dive into mortgage quality control trend reporting and how it aligns with the current state of the industry, and industry insights and how to best navigate through the volatile financial landscape. As the GSEs begin taking an aggressive stance on repurchase requests for loans with curable defects, now is the time to take steps towards ensuring true loan quality. Register today.

“Free webinar alert! With volumes down 40% or more midway through 2023, large-scale digital transformation feels more out of reach than ever. Instead, many lenders are focusing on smaller projects to produce short-term ROI gains. Join executives from Fairway Independent Mortgage Corp., Lennar Mortgage, Stavvy, Wolters Kluwer and Falcon Capital Advisors as they discuss the shift in approach from open-ended “digital journeys” to targeted incremental “sprints.” We will delve into various aspects such as the prioritization of digital transformation projects, the evolving objective of achieving fully digital closings and eNotes, and the potential impact on the upcoming cycle. Don’t miss out: register now for this July 19th event.”

Join ACUMA and MCT on June 22nd at 11am PT for their upcoming webinar on Strategies for Credit Unions to Mitigate Market Risk. This webinar will provide a current market overview and include actionable insights and recommendations for credit unions to mitigate market risk. ACUMA’s President, Peter J. Benjamin, CMB, and MCT’s Phil Rasori and Andrew Rhodes will also review strategies to improve profitability to add value for members. MCT also recently released a new whitepaper on Mortgage Pipeline Hedging 101. The whitepaper reviews information on moving to mandatory, the strategy of hedging, the benefits of hedging, and how to determine if you are ready. Read the whitepaper to learn how you can use hedging as a tactic to mitigate risk and optimize profitability when selling mortgage loans.

One For All and All For One

Benjamin Franklin, during the Revolutionary War, sagely observed, “We Must Hang Together or Surely We Shall Hang Separately.” Things are not that dire in residential lending, but it is important to know we’re better off standing together as an industry.

With that in mind, the week of June 12-16th, the Mortgage Bankers Association (MBA) is hosting its eighth annual action week, a national, industry-wide campaign to grow its FREE grassroots advocacy network, the Mortgage Action Alliance (MAA). MAA is non-partisan and one of the most effective ways to participate in the political process. The industry’s well-being and future are in our hands. To help strengthen our industry’s voice, we encourage all mortgage industry professionals to support this effort. MAA unites all industry advocates and allows them to have an active role in shaping legislation and regulations, impacting our company, customers, and the broader economy. To join this free grassroots advocacy network, click here or text “MAA” to 50457 to receive a signup link. Renewing or joining takes less than 30 seconds! MAA members receive many benefits with real-time news alerts impacting our industry, “Calls to Actions,” pre-drafted communications directly to their elected officials or federal regulators when immediate action is needed, monthly newsletters with legislative developments, and access to MAA quarterly webinars/townhalls. Our legislators and regulators shaping policies impacting our industry must hear from you. You are the experts; your voices are needed to share the vital work we do. I have joined MAA, and I encourage you to do the same. The larger the group, the louder the voice.

Capital Markets

The FOMC concluded its two-day policy meeting yesterday with the unanimous interest rate decision of “pause, not stop,” keeping its benchmark rate range from 5.00-5.25 percent as well as the door open for future rate hikes.

While the pause was widely predicted via much foreshadowing by Fed officials, the “dot plot”, used by analysts to predict Fed activities, showed two more rate hikes projected in 2023 (for up to 50 basis points, which would make for an overnight rate as high as 5.6 percent), making the decision a “hawkish pause” (or skip). This is the first pause since the Federal Reserve began a historically aggressive round of monetary tightening 15 months ago, hiking the fed funds rate 10 times for a total of 500 basis points. However, there was plenty of hawkishness in the accompanying commentary and in Chair Powell’s press-conference.

Powell went out of his way to remind market participants that it may raise rates down the line as the Fed remains focused on taming inflation and bringing it back in-line with its 2 percent target. With inflation cooling, though the core reading is still above 5 percent, and America’s employment picture remaining robust (the unemployment rate sits below 4 percent), the Fed certainly has rationale for more raises.

It’s now wait and see how it all shakes out until the Fed’s next meeting in July. The Fed is hoping to bring the post-pandemic U.S. economy in for a gentle landing, and “judged it prudent” to hold rates steady given how quickly they have risen, wanting to take time to assess. Powell added that the pause is a continuation of its moderating pace of policy measures and the full effects of the Fed’s tightening have yet to be felt at a time when inflation has already decelerated to 4 percent.

With GDP up, unemployment down, CPI and PPI going marginally in the Fed’s desired direction (we learned yesterday that the Producer Price Index benignly declined 0.3 percent month-over-month in May to register up 1.1 for the year, which is below the Fed’s target rate for inflation), another 25 basis points hike is currently priced in for the July meeting. The likelihood of an additional hike after that has also increased given the dot plot and the lack of credit crunch the Fed was expecting from the banking sector. Banking challenges have already resulted in a tight credit environment, and the threat of further hikes will only further slow economic activity.

But lenders care about mortgage rates, and they’ve generally increased in the past month, and this has slowed the pace of housing market activity, as potential homebuyers have been very sensitive to any changes in rates this year. The yield on the 10-year U.S. Treasury is sitting around 3.8 percent. That normally means the 30-year mortgage rate would be around 5.6 percent. However, mortgage rates have been near 7 percent recently, so there is the potential for a decline as we progress through the year.

With pull through rates jumping, the selling needs of originators have jumped significantly as pipelines extend with pull through rates rising. It is certainly notable that pipelines are much more reactive to rate moves now than they were in early 2023. After the Fed’s decision, the yield curve immediately flipped from “calm steepener” to “angry bear flattener” on the news. The 2s/10s spread went as far as 95 basis points inverted and 2-year Treasury notes are now officially in technical no-man’s land. Some yield curve steepening is desperately needed.

Today’s calendar is packed with market moving potential starting with the latest rate decision from the European Central Bank (+.25 percent to 3.50 percent, as expected) and ECB head Lagarde’s press conference. The U.S. calendar is under way with retail sales (+.3 percent, ex-auto +.1 percent, stronger than expected), Empire and Philadelphia Fed manufacturing (6.6, a huge jump, and -13.7, respectively), weekly jobless claims (262k, unchanged) and import & export prices (imports were -.6 percent). May industrial production and capacity utilization, April business inventories, Treasury auction sizes for next week’s reopened 20-year bonds and 5-year TIPS, and Freddie Mac’s Primary Mortgage Markets Survey are also on tap. We begin the day with the 2-year up at 4.74 percent, Agency MBS prices roughly unchanged from the ugly Wednesday afternoon, and the 10-year yielding 3.81 after closing yesterday at 3.80 percent.

Employment

“At Planet, we understand you’re facing ever-increasing challenges of running a successful nonbank retail organization: the relentless competition for shrinking volume, perpetually squeezed profit margins, and the unpredictable evolution of the marketplace. You’ve built an extraordinary empire, and a move to Planet can ensure it continues to thrive. With us, you’re not just plugging into a platform. You’re joining a multichannel family of companies that works with you to ensure your business operates at peak performance. Go beyond just keeping the lights on. Gain the confidence to shine brighter than ever. Benefit from the unparalleled stability, scalability, and competitive pricing generated by $26 billion a year in volume and an $82 billion servicing portfolio. Considering the potential advantages of selling your purchase-centric distributed retail company? For a comprehensive and confidential discussion of the benefits of acquisition, reach out today to Planet SVP Talent Acquisition Brian Miller ( 214-223-9986) or VP Talent Acquisition Peter Briggs (435-709-6278).”

“PrimeLending is the ultimate destination for loan originators seeking to fuel their rise to greatness. Through May of this year, we’ve experienced a remarkable growth surge, adding over 100 top performing LOs and establishing seven new branches nationwide. Why are so many producers choosing PrimeLending? It’s simple: our strength, stability, experienced leadership team, extensive loan product offerings, and world-class operations. Our commitment to excellence is further validated by our rankings: 11th among top retail lenders and 15th overall, according to the Scotsman Guide. Contact Nic Hartke to discover how PrimeLending provides an unparalleled platform for loan originators to shine. Unleash your potential and experience extraordinary opportunities with PrimeLending today.”

Download our mobile app to get alerts for Rob Chrisman’s Commentary.

Source: mortgagenewsdaily.com

Apache is functioning normally

June 18, 2023 by Brett Tams

A handful of important mortgage rates slid downward over the last seven days. Fifteen-year fixed and 30-year fixed mortgage rates both moved down. For variable rates, the 5/1 adjustable-rate mortgage trended upward.

After hiking interest rates 10 times since March 2022, the Federal Reserve pumped the brakes during its June meeting. The central bank’s benchmark federal funds rate will remain at a range of 5.00% to 5.25% for the time being, although the Fed hasn’t ruled out the possibility of further increases if inflation doesn’t continue to moderate.

As long as inflation continues to trend downward, experts say a pause in rate hikes from the Fed could bring some stability to today’s volatile mortgage rate market.

Mortgage rates change every day. Experts recommend shopping around to make sure you’re getting the lowest rate. By entering your information below, you can get a custom quote from one of CNET’s partner lenders.

About these rates: Like CNET, Bankrate is owned by Red Ventures. This tool features partner rates from lenders that you can use when comparing multiple mortgage rates.

Mortgages hit a 20-year high in late 2022, but now the macroeconomic environment is changing again. Rates dipped significantly in January before climbing back up in February. Aside from a brief surge towards the end of May, rates continue to fluctuate in the 6% to 7% range.

Even though the Fed hit pause on rate hikes, mortgage interest rates will continue to fluctuate on a daily basis. That’s because mortgage rates aren’t tied to the federal funds rate in the same way other products are, such as home equity loans and home equity lines of credit, or HELOCs. Mortgage rates respond to a variety of economic factors, including inflation, employment and the broader outlook for the economy.

“Mortgage rates will continue to ebb and flow week to week, but ultimately, I think rates will stick to that 6% to 7% range we’re seeing now,” said Jacob Channel, senior economist at loan marketplace LendingTree. “I don’t anticipate them to spike or even show a sustained spike following this meeting,” Channel says.

Overall, inflation remains high but has been slowly, but consistently, falling every month since it peaked in June 2022.

After raising rates dramatically in 2022, the Fed opted for smaller, 25-basis-point increases in its first three meetings of 2023. The decision to hold rates steady on June 14 suggests that inflation is cooling and ongoing rate hikes may no longer be necessary to bring inflation down to the Fed’s 2% target. The central bank is unlikely to cut rates any time soon, but positive signaling from the Fed and cooling inflation may ease some of the upward pressure on mortgage rates.

“Rates are getting to a point of being steady. So, it’s more a question of how long it will take for rates to start ticking back down and when inflation will return to a place where your dollar starts buying a little bit more each month,” said Kevin Williams, founder of Full Life Financial Planning.

However, mortgage rates remain well above where they were a year ago. Fewer buyers are willing to jump into the housing market, driving demand down and causing home prices in some regions to ease, but that’s only part of the home affordability equation.

“Interest rates have been much higher in the past and people bought homes and financed homes at those rates. But it’s been hard for people to react to such a rapid increase in just a short amount of time,” said Daniel Oney, research director at the Texas Real Estate Research Center at Texas A&M University. “Everybody had a target for how much they needed to save in order to go into the housing market, but when interest rates increased, those goal posts moved too,” he added.

What does this mean for homebuyers this year? Mortgage rates are likely to decrease slightly in 2023, although they’re highly unlikely to return to the rock-bottom levels of 2020 and 2021. However, rate volatility may continue for some time. “Expect mortgage rates to yo-yo up and down in the first half of the year, at least until there is a consensus about when the Fed will conclude raising interest rates,” says Greg McBride, CFA and chief financial analyst at Bankrate. McBride expects rates to fall more consistently as the year progresses. “Thirty-year fixed mortgage rates will end the year near 5.25%,” he predicts.

Rather than worrying about market mortgage rates, homebuyers should focus on what they can control: getting the best rate they can for their situation.

“The most important thing is that they find the right home. The second most important thing is obviously to find the most efficient way to finance it,” said Melissa Cohn, regional vice president of William Raveis Mortgage.

Take steps to improve your credit score and save for a down payment to increase your odds of qualifying for the lowest rate available. Also, be sure to compare the rates and fees from multiple lenders to get the best deal. Looking at the annual percentage rate, or APR, will show you the total cost of borrowing and help you compare apples to apples.

30-year fixed-rate mortgages

The average 30-year fixed mortgage interest rate is 6.99%, which is a decline of 6 basis points compared to one week ago. (A basis point is equivalent to 0.01%.) The most common loan term is a 30-year fixed mortgage. A 30-year fixed mortgage will often have a higher interest rate than a 15-year fixed rate mortgage — but also a lower monthly payment. Although you’ll pay more interest over time — you’re paying off your loan over a longer timeframe — if you’re looking for a lower monthly payment, a 30-year fixed mortgage may be a good option.

15-year fixed-rate mortgages

The average rate for a 15-year, fixed mortgage is 6.40%, which is a decrease of 5 basis points from seven days ago. Compared to a 30-year fixed mortgage, a 15-year fixed mortgage with the same loan value and interest rate will have a higher monthly payment. But a 15-year loan will usually be the better deal, as long as you can afford the monthly payments. You’ll most likely get a lower interest rate, and you’ll pay less interest in total because you’re paying off your mortgage much quicker.

5/1 adjustable-rate mortgages

A 5/1 ARM has an average rate of 6.13%, a climb of 6 basis points from seven days ago. With an ARM mortgage, you’ll typically get a lower interest rate than a 30-year fixed mortgage for the first five years. But since the rate adjusts with the market rate, you might end up paying more after that time, as described in the terms of your loan. If you plan to sell or refinance your house before the rate changes, an adjustable-rate mortgage could make sense for you. But if that’s not the case, you may be on the hook for a much higher interest rate if the market rates shift.

Mortgage rate trends

Mortgage rates were historically low throughout most of 2020 and 2021 but increased steadily throughout 2022. Now, mortgage rates are roughly twice what they were a year ago, pushed up by persistently high inflation. That high inflation prompted the Fed to raise its target federal funds rate seven times in 2022. By raising rates, the Fed makes it more expensive to borrow money and more appealing to keep money in savings, suppressing demand for goods and services.

Mortgage interest rates don’t move in lockstep with the Fed’s actions in the same way that, say, rates for a home equity line of credit do. But they do respond to inflation. As a result, cooling inflation data and positive signals from the Fed will influence mortgage rate movement more than the most recent 25-basis-point rate hike.

We use rates collected by Bankrate to track rate changes over time. This table summarizes the average rates offered by lenders across the US:

Today’s mortgage interest rates

Loan term	Today’s Rate	Last week	Change
30-year mortgage rate	6.99%	7.05%	-0.06
15-year fixed rate	6.40%	6.45%	-0.05
30-year jumbo mortgage rate	7.01%	7.05%	-0.04
30-year mortgage refinance rate	7.15%	7.13%	+0.02

Rates as of June 16, 2023.

How to find personalized mortgage rates

You can get a personalized mortgage rate by reaching out to your local mortgage broker or using an online calculator. Make sure to think about your current finances and your goals when trying to find a mortgage.

Specific mortgage interest rates will vary based on factors including credit score, down payment, debt-to-income ratio and loan-to-value ratio. Generally, you want a higher credit score, a higher down payment, a lower DTI and a lower LTV to get a lower interest rate.

Beyond the mortgage rate, other costs including closing costs, fees, discount points and taxes might also affect the cost of your house. Make sure to comparison shop with multiple lenders — such as credit unions and online lenders in addition to local and national banks — in order to get a loan that works best for you.

How does the loan term affect my mortgage?

One important consideration when choosing a mortgage is the loan term, or payment schedule. The mortgage terms most commonly offered are 15 years and 30 years, although you can also find 10-, 20- and 40-year mortgages. Another important distinction is between fixed-rate and adjustable-rate mortgages. The interest rates in a fixed-rate mortgage are fixed for the duration of the loan. For adjustable-rate mortgages, interest rates are stable for a certain number of years (commonly five, seven or 10 years), then the rate fluctuates annually based on the market interest rate.

One thing to take into consideration when choosing between a fixed-rate and adjustable-rate mortgage is how long you plan on living in your home. Fixed-rate mortgages might be a better fit for those who plan on living in a home for a while. While adjustable-rate mortgages might offer lower interest rates upfront, fixed-rate mortgages are more stable over time. If you don’t plan to keep your new house for more than three to 10 years, however, an adjustable-rate mortgage could give you a better deal. The best loan term depends on an individual’s situation and goals, so make sure to take into consideration what’s important to you when choosing a mortgage.

Source: cnet.com

Apache is functioning normally

June 17, 2023 by Brett Tams

It may be nicknamed “the garden state,” but New Jersey isn’t just known for its agriculture. Multiple industries thrive in the state, drawing people looking for career opportunities. The best banks in New Jersey offer plenty of checking and savings account options to help you find the right fit.

9 Best Banks in New Jersey

If you’re in the market for a bank account, the options can feel overwhelming. But whether you’re looking for a local bank, a regional or national bank, or a credit union, there’s a financial institution to fit. Here are the nine best banks in New Jersey to help kick off your search.

1. Valley National Bank

Regional banks like Valley National Bank bring the benefits of a local bank while still offering expanded ATM and branch reach. Valley National Bank has locations throughout New Jersey, as well as in Alabama, Florida, and New York. If you travel outside those areas, though, you’ll pay a $2 fee for using an ATM outside the Valley National Bank network, and that’s in addition to fees charged by the ATM owner.

Currently, Valley National Bank is offering a $250 reward to new checking customers with its My Loyalty Checking. You’ll just need to set up bill pay or have at least one qualifying direct deposit. With My Loyalty Checking, you’ll also have up to $10 in out-of-network ATM fees refunded each month.

Fees:

No monthly maintenance fees
$36 overdraft fee

Balance requirements:

$100 minimum deposit to open
No minimum balance requirements

ATMs:

Fee-free at Valley National Bank ATMs
$2 for each non-Valley National Bank ATM transaction

Interest on balance:

0.85% APY on savings accounts
Up to 5.35% APY on CDs
Up to 1.75% APY on money market savings accounts

Additional perks:

Valley National Bank My Loyalty Checking account offers $250 reward
Teen, college, and business checking accounts

2. Chime

Online banking lets you manage your money from wherever you are. Chime is an online bank that offers banking solutions like mobile check deposit, bill pay, and easy transfers from checking to savings. Chime does work best if you have direct deposit activity each month, though, since its biggest perks require it.

If you’re working to build your credit, one of Chime’s best features is its secured credit card. No credit check is required to set up the card, and you may be able to increase your FICO score by 30 points, on average.

Fees:

No monthly maintenance fees
No overdraft fees

Balance requirements:

No minimum deposit required to open
No minimum balance required

ATMs:

Fee-free at 60,000+ ATMs nationwide
$2.50 out-of-network ATM fee

Interest on balance:

2.00% APY on savings account

Additional perks:

Access to paycheck up to two days early
SpotMe covers up to $200 in overdrafts

3. Capital One

If you’re looking for banking services that follow you wherever you go, national banks can be a great option. Capital One is one of the biggest banks in New Jersey, with 19 branches throughout the state. You’ll get fee-free access to cash at more than 70,000 locations, including MoneyPass and Allpoint ATMs.

One of the biggest benefits of banking with Capital One is that all overdraft fees are waived. You can set up your overdraft protection preferences to either automatically decline transactions or transfer funds from your savings or money market account.

Fees:

No monthly maintenance fees
No overdraft fees

Balance requirements:

No minimum opening deposit
No minimum balance required

ATMs:

Fee-free at Capital One ATMs
Fee-free at any Allpoint or MoneyPass ATM
$2 out-of-network ATM fee

Interest on balance:

Up to 4.10% APY on savings accounts
Up to 4.75% APY on CDs

Additional perks:

Cash deposit access at any CVS location
Some branches include cafés with Wi-Fi

4. Chase Bank

Small business owners in New Jersey should take a look at Chase, a national bank with 190 branches throughout the state. Business checking accounts can earn up to $500 in bonuses, and business credit cards currently get a $750 bonus cash back with qualifying activities. Chase also offers a variety of business loans, including lines of credit and commercial financing.

But bonuses aren’t limited to large and small business owners. Currently, new Chase Total Checking account customers can earn a $200 bonus with direct deposit. You’ll get access to personal service at branches across the country, including cafés, which offer free Wi-Fi and gourmet coffee.

Fees:

$12 monthly fee (waived with requirements)
$34 overdraft fee

Balance requirements:

No minimum opening deposit
No minimum balance

ATMs:

Fee-free at 15,000+ Chase ATMs
$3-$5 out-of-network ATM fee

Interest on balance:

0.01% APY on savings accounts
Up to 3.75% APY on CDs

Additional perks:

$200 cash bonus for new checking account customers
Autosave feature helps you set money aside

5. PNC Bank

Another option if you prefer national banks is PNC Bank, which has 193 branches in New Jersey. You’ll have fee-free access not only to PNC ATMs, but you can also withdraw cash at more than 60,000 partner ATMs nationwide.

PNC’s basic checking account is Virtual Wallet, which comes with no monthly fees as long as you receive at least $500 in direct deposits or keep a balance of at least $500 across all your PNC checking or savings accounts. Currently, PNC is paying a $50 bonus for its lower-tier account, but if you go with Virtual Wallet with Performance Spend or Performance Select, your bonus increases to $200 or $400, respectively.

Fees:

$7 monthly fee (waived with requirements)
$36 overdraft fee

Balance requirements:

$25 minimum opening deposit
No minimum balance

ATMs:

Fee-free at PNC ATMs
Fee-free at 60,000 partner ATMs nationwide
$3 out-of-network ATM fee

Interest on balance:

Up to 0.03% APY on savings accounts
Up to 4.00% APY on CDs

Additional perks:

Up to $400 bonus for new Virtual Wallet checking accounts
Wealth management services built into app

6. Wells Fargo

Wells Fargo is another of many national banks in New Jersey. You’ll get fee-free cash access at more than 12,000 Wells Fargo ATMs nationwide. Currently, Wells Fargo is offering a $300 bonus for opening a new checking account and receiving $1,000 or more in qualifying direct deposits.

If you’re in the market for a new savings account, Wells Fargo has a deal there, too. You can earn a $525 bonus on a new savings account as long as you add $25,000 to the account in the first 30 days. You’ll need to maintain that minimum balance for at least 90 days to receive the bonus.

Fees:

$10 monthly fee (waived with requirements)
$35 overdraft fee

Balance requirements:

No minimum opening deposit
No minimum balance

ATMs:

Fee-free at Wells Fargo ATMs nationwide
$2.50 out-of-network ATM fee

Interest on balance:

Up to 2.51% APY on savings accounts
Up to 4.75% APY on CDs

Additional perks:

$300 bonus on new checking accounts
Robust mobile banking features

7. TD Bank

With nearly 200 locations in New Jersey, plus branches and ATMs nationwide, TD Bank is one of the best banks in New Jersey for its mobile and online banking experience. TD offers a variety of deposit accounts, as well as personal loans and credit cards.

TD has multiple checking account options, including the Essential Bank Account, which comes with a $4.95 service fee and no minimum requirements. The fee is waived for those between the ages of 13 and 17, so this could be a great starter account for your high schooler. TD offers higher-than-average interest rates on savings accounts and CDs, so it’s worth checking out for that reason alone.

Fees:

$4.95 monthly service fee
No overdraft fees

Balance requirements:

No minimum deposit to open
No minimum balance

ATMs:

Fee-free at 2,600 TD Bank ATMs nationwide
$3 out-of-network ATM fee

Interest on balance:

Up to 3.51% APY on savings accounts
Up to 5.00% APY on CDs

Additional perks:

Live online customer service available 24 hours a day
$200 bonus for new checking accounts

8. GO2bank

Another online banking option is GO2bank, which offers all the features you need to manage your account online. The checking account is fee-free as long as you have an electronic deposit coming in each statement period. This qualifying deposit also gives you access to your paycheck a couple of days early.

GO2bank is one of many online bank accounts, but one differentiating feature is its high-yield savings account. You’ll earn 4.50% APY on your savings account balance, but that interest is limited to the first $5,000 in combined balances. Any funds above that amount won’t earn interest at all.

Fees:

$5 monthly service fee (waived with requirements)
$15 overdraft fee

Balance requirements:

No minimum deposit to open
No minimum balance

ATMs:

No ATM fees at Allpoint ATMs nationwide
$3 out-of-network ATM fee

Interest on balance:

4.50% APY on savings accounts

Additional perks:

Cash deposit access at 90,000+ retailers nationwide
Secured credit card helps you build credit with no credit check required

9. American Heritage Credit Union

American Heritage Credit Union is a Pennsylvania credit union with a branch in Cherry Hill, New Jersey. Like many credit unions, American Heritage has membership requirements. In this case, you’ll need to live, work, worship, or go to school in one of the approved Philadelphia-area communities, work for one of the workplace partners, or be related to a qualifying member. However, anyone can join by simply becoming a member of the Kids-N-Hope Foundation.

There are some reasons to sign up for American Heritage even if you don’t have a branch nearby. American Heritage offers great deals on accounts for consumers and small business owners, and you’ll also get ATM access at more than 30,000 locations nationwide.

Fees:

No monthly fees
$10-$15 overdraft fee

Balance requirements:

No minimum deposit to open
No minimum balance

ATMs:

Fee-free access at American Heritage ATMs
Fee-free access to 30,000+ ATMs nationwide
Up to 10 out-of-network ATM fees reimbursed monthly

Interest on balance:

Up to 3.55% APY on savings accounts
Up to 5.00% APY on CDs

Additional perks:

Competitive interest rates on auto and home loans
Wide range of business banking services

Frequently Asked Questions

Banking solutions come in a variety of formats, so it’s only natural you’ll have some questions. Here are some frequently asked questions about the best banks in New Jersey.

What should I expect from a bank in New Jersey?

From local New Jersey banks to national banks with branches in the state, there’s no shortage of options. But all these choices mean you can easily sort through the best banks to find the right one for you.

Customer service is an important feature of any New Jersey bank. Whether this means the in-person experience you get with local banks or around-the-clock service via online chat, it’s important that a bank offer a method to suit your preferences. If you’re comparing the same account terms across multiple banks and credit unions, this is one factor that can become a final decider.

What do you need to open a bank account with banks in NJ?

If you’re opening a new checking or savings account in New Jersey, there are a few things you’ll need. You’ll save time and trouble by gathering all your documentation before applying.

For online and mobile banking options, you may need to either scan and upload, snap a photo, or mail a photo ID. Some of the best checking accounts will also require you to deposit money to open them. This can be anywhere from $10 to $100. Make sure you have the funds to make this deposit at account opening.

Do banks in New Jersey have online accounts?

Some of the best financial institutions in New Jersey aren’t located in the state at all. You can find online checking accounts that pay more interest and require fewer fees than the same accounts from a national, regional, or local bank.

If saving money is your priority, don’t rule out online banking for those, either. Savings accounts, CDs, and money market accounts will often accrue interest at an interest rate that’s higher than what you’d earn with accounts at local Jersey banks or banks with branches in the state.

Where can you open a savings account in New Jersey?

Although you can find a high-yield checking account that pays interest on your balance, you’ll usually get a better deal on savings. There are plenty of local, national, and regional banks that pay a competitive interest rate, but some of the best deals come from mobile banking apps that have no local presence.

If you’d prefer a brick-and-mortar option, though, pay attention to interest rates. You can find savings rates in the 4% to 5% range online, so when you’re looking at a particular account, keep that in mind. It’s not unusual for consumers to have checking accounts locally but move their savings to an online-only bank for a better deal.

How much tax do you pay in New Jersey for interest you earned?

When you earn interest on your bank account balances, you’ll have to pay taxes. All your banking interest earned has to be reported on your federal taxes each year. This will be summarized on Form 1099-INT, which your bank will send at tax time.

New Jersey residents also pay state income tax. Your income interest is lumped in with your other income and taxed at the current rates. New Jersey uses a graduated tax rate. The higher your income, the more you’ll pay, with a maximum of 10.75%.

Whether you go with mobile banking or a bank with local branches, it’s important to find the bank that best fits your needs. Some banks make cash deposits easy while others give you everything you need to manage your money. Interest rates and fees can be the final decider when you’re choosing a partner for your New Jersey banking needs.

Source: crediful.com