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Apache is functioning normally

September 13, 2023 by Brett Tams

The $300 travel credit on the Capital One Venture X card is changing from being a statement credit to becoming a coupon you apply to your purchase at checkout on the Capital One booking portal. This is a slight devaluation for a few reasons:

You can’t purchase a refundable ticket/hotel and keep the $300 statement credit if it gets cancelled. (Should still be possible to bank the credit with an airline who offers such a cancellation policy.)
We will no longer earn 5/10x on the purchase for that $300 charge since the cost is simply reduced as a coupon.
The $300 in spend will no longer count toward your minimum spend requirement

Here’s what’s showing in the app (bolding my own):

What’s changed?

The $300 annual travel credit was previously delivered via statement credit. It will no longer be delivered as a statement credit as it is now directly redeemable through Capital One Travel.

How can I use my $300 annual travel credit?

Eligible Venture X primary account holders receive a $300 annual Capital One Travel credit available to use for bookings through Capital One Travel.

To use your credit, select the option to apply it at checkout when you’re ready to make your next purchase through Capital One Travel. The credit may be used in whole for a single purchase or in part over multiple purchases. You can view your annual travel credit and any other travel credits by navigating to My Travel Credits and Offers within Capital One Travel.

Each annual credit will expire on the next account open date anniversary. If the purchase using the credit is canceled, the credit will be restored if it is not expired. Rewards will not be earned on the credit. Your Venture X card account must be open and in good standing to receive or use the Credit.

Hat tip to reader fearthez

Source: doctorofcredit.com

Apache is functioning normally

September 12, 2023 by Brett Tams

Checking accounts provide a useful foundation for many people’s daily financial lives, and some offer additional perks beyond the basics. Called rewards checking accounts, these financial vehicles can benefit customers in a variety of ways. Your money might earn interest, cashback, points, airline miles, or other bonuses (or even a combination of these).

For some, this kind of incentive is a good reason to stash their money at a particular financial institution versus another. However, some rewards checking accounts can involve fees and/or minimum balance requirements which may make them less enticing.

To help decide if a rewards checking account is right for you, read on for such information as:

• What are rewards checking accounts?

• How does a rewards checking account work?

• How do you qualify for a rewards checking account?

• What are reward checking accounts’ pros and cons?

What Is a Rewards Checking Account?

Simply put, a rewards checking account is one that rewards a person for opening and using the account. Those bonuses can take a variety of forms. Consider this:

• A standard, no-frills checking account may have no monthly fees, minimum balance requirements, or minimum opening deposits. However, the perks are generally equally basic: a nonexistent or nominal annual percentage yield (APY), if any no ATM surcharge reimbursements, and often no signup bonus.

• This kind of standard checking account can be attractive for some, but those seeking to earn money for their banking loyalty might prefer a rewards checking account instead.

• Though the specific perks vary by account, you can typically find a checking rewards account that offers a higher interest rate or cash back. You might also be offered airline miles, a signup bonus, free identity theft protection, cell phone insurance, and reimbursement for ATM fees.

💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.50% APY, with no minimum balance required.

How Does a Rewards Checking Account Work?

Some checking accounts with rewards have criteria for earning perks each month. For instance, a bank may require you to:

• Use your debit card for a minimum number of transactions each month

• Maintain an average minimum account balance

• Receive a set number of direct deposits equal to a specified value

• Enroll in services like e-statements or online bill pay

If the reward is a higher APY, you will likely earn that in the form of monthly interest on your bank’s payment schedule, deposited directly into the account. If the checking reward is cash back, the bank may offer multiple ways to redeem the cash within the mobile app. Similar to cashback credit cards, you can often convert points into airline miles or other perks — or just receive cash in your account.

Perks of a Rewards Checking Account

The perks of a rewards checking account will vary by bank but might include:

Cash Back

Cash back is usually expressed as a percentage of the transactions made with a debit card; this might also be structured as points or even airline miles.

Interest

A rewards account may be an interest-bearing checking account. If so, it will offer an APY that is higher than the zero or the very low rate usually offered by most checking accounts.

Signup Bonus

A rewards checking account may pay a one-time bonus for signing up for a new account and meeting specific criteria.

ATM Fee Reimbursement

A rewards account may offer refunds for expenses incurred for using out-of-network ATMs.

Other Perks

Among the other rewards you may see offered are ways to earn airline miles, shopping discounts, cell phone insurance, and identity theft protection, among other options.

Some rewards checking accounts may offer a combination of these perks.

Ready for a Better Banking Experience?

Open a SoFi Checking and Savings Account and start earning 4.50% APY on your cash!

Who Should Use a Rewards Checking Account?

A rewards checking account can be a good option if you regularly use your debit card for purchases and keep a substantial amount of money in your checking account. If you do not have a rewards credit card, a rewards checking account can serve as an alternative way to earn money for spending money.

As mentioned, some banks have special requirements for members to earn rewards. Read terms and conditions carefully. If you cannot meet account requirements for the reward, the account might not be right for you, especially if there are monthly maintenance fees.

💡 Quick Tip: Are you paying pointless bank fees? Open a checking account with no account fees and avoid monthly charges (and likely earn a higher rate, too).

How to Qualify for a Rewards Checking Account

Qualifying for a rewards checking account may vary depending on the bank, but, as mentioned above, there tend to be common core requirements for earning rewards, such as:

• A minimum number of debit card transactions in a month

• An average daily minimum account balance

• A minimum number (or value) of monthly direct deposits

If an account comes with a signup bonus, the bank likely has a set of requirements you’ll need to meet to snag that cash. This may include enrolling in direct deposit to get you started.

When considering a rewards checking account, it’s wise to read the fine print before opening to ensure you fully understand the requirements. Opening a checking account is typically a simple process, but you do want to make sure you understand the details before you sign up.

Pros of Rewards Checking Accounts

Here are some of the benefits of a rewards checking account, though perks will vary by program:

• Earning potential: Whether through a higher-than-average APY or through cash back on debit card purchases, the main draw of a rewards checking account is often earning money (or more money) for doing the banking you would do anyway.

• Tax implications: In general, the Internal Revenue Service (IRS) sees cash back as a rebate for or discount on something you purchased, so you won’t have to pay taxes on that money. Not a bad deal at all! However, if the reward for the account is a high interest rate or a signup bonus, you should expect to receive an IRS Form 1099 from your bank for that income.

• Fees: Some rewards checking accounts charge monthly fees (some of which might be waivable), but other rewards checking accounts are noteworthy for being fee-free.

Recommended: Pros and Cons of No Interest Credit Cards

Cons of Rewards Checking Accounts

Depending on the individual and their financial style and goals, there may be some downsides to a rewards checking account:

• Limits on rewards: Some bank programs cap the rewards at a set amount each month, meaning there could be a limit to the amount of cash back you can earn.

• Better rewards elsewhere: Rewards credit cards may offer more cash back than a rewards checking account. However, these cards often have credit score requirements that make it more difficult to qualify. You probably need a credit score in the good to excellent range, meaning 670 or above.

• Minimum balance requirements: Some banks have minimum balance requirements to earn the reward. If you cannot meet the requirement or do not wish to keep that much money in a checking account, the account might not be the right fit.

• Fees: While some rewards checking accounts have no fees, others do charge monthly maintenance fees that can make the rewards less attractive or possibly even negate them.

Cashback Checking Accounts vs Credit Cards

You may be wondering whether a cashback checking account or credit card is the better fit for you. See how they stack up here:

Cashback Checking Account	Cashback Credit Cards
Provides a secure hub for daily finances	Provides a line of credit for purchases
May charge fees	Charges interest
Earn cashback typically through debit card use	Earn cashback typically through spending with credit card

Is a Rewards Checking Account Worth It?

A rewards checking account with cash back can be a good fit if the conditions to earn the perks are no problem for you.

• You might already be in the habit of swiping your debit card for everyday purchases or this prospect doesn’t faze you. If so, then a rewards checking account with cash back might be worth it. It can be easy to manage a checking account like this and make your money work harder for you.

• If you like to keep a large sum of funds in your checking account to cover automatic bill payments, you might enjoy the earning potential provided by a high-interest checking account even if it has a higher-than-usual balance requirement.

Is a Rewards Checking Account Right for You?

Each person has a unique financial situation and goals. Here are some considerations that may help you decide if a rewards checking account is right for you:

• If you want to earn interest (or more interest) on cash you have sitting in your checking account, a rewards account might be a good choice for you.

• If there are perks that you could reap for behaviors you engage in (swiping your debit card, receiving direct deposit) or don’t mind adopting, this kind of account could work well for you.

• Not a person who has a rewards credit card? A rewards checking account could give you some of the same perks.

Opening a Checking Account With SoFi

Rewards checking accounts are checking accounts that offer special incentives to members, such as cash back on debit card purchases, high interest rates, or ATM fee reimbursements. SoFi could be the right bank for you if you’re looking for these kinds of perks.

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

Better banking is here with up to 4.50% APY on SoFi Checking and Savings.

FAQ

What are rewards in banking?

Rewards in banking refer to incentives and perks that account holders receive. They might be a signup bonus for a new account, a higher-than-average interest rate, or checking account cash back in the form of points, miles, or actual cash that can be deposited into your account or, for a credit card, applied toward your statement.

Why do banks offer points or rewards?

Banks offer points or rewards to entice consumers to choose their accounts or cards over competitors. Once you become a member, rewards ensure you continue to engage with the bank’s product, either by depositing more funds into your account or using your debit or credit card for more daily purchases.

Are bank rewards interest?

Bank rewards can come in the form of higher interest. For example, the current national average interest rate for a checking account is 0.43%, while rewards checking accounts may offer a higher than average interest rate, often 1.00% to 3.00% or higher. The interest that you earn is taxable, while cash back typically is not (it’s considered a rebate).

Can you earn points on a checking account?

Some checking accounts do allow you to receive points as a reward. For instance, you might receive one point for every dollar or two you spend with your debit card.

Are bank rewards worth it?

Whether or not bank rewards are worth it depends on your financial situation and preferences. Do you meet the criteria for a rewards checking account (such as swiping your debit card often enough or receiving a certain dollar amount of direct deposits)? Can you handle any requirements such as monthly minimum balance or account fees, if assessed? If so, earning interest or receiving other perks could be a smart, money-wise move.

Photo credit: iStock/Feodora Chiosea

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

The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.50% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.50% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.50% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 8/9/2023. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet..

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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

SOBK0723047

Source: sofi.com

Apache is functioning normally

September 12, 2023 by Brett Tams

More than 1 in 3 people who divorce in the United States are age 50 or older, and 1 in 4 are 65 or older, according to a 2022 analysis published in the Journals of Gerontology.

Divorcing as you near retirement — or after you’ve retired — comes with considerations: Are you (or your spouse) losing health insurance? If you’re retired but not yet eligible for Medicare, where will you find coverage? How does being an ex-spouse affect your Medicare costs?

If you have health insurance through your own employer, not much will change, but if you’re on Medicare or your partner’s employer policy, you’ll have to ask some questions. And you may want to help your ex make the transition, if they’re on your policy.

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Here are the points to consider:

Does your employer offer benefits?

If you’re still working, does your employer offer health coverage? If so, divorce is considered a life event that will qualify you to make changes to your benefits, such as enrolling in a health insurance plan. You have 30 days after your other coverage ends to request special plan changes.

Do you have access to COBRA?

If you were covered under your ex-spouse’s employer plan, you can opt in to coverage under COBRA — the Consolidated Omnibus Budget Reconciliation Act — for up to 36 months after the divorce. COBRA applies to group plans of employers that have at least 20 employees.

“You should expect the insurance cost to be substantially higher, as now you are responsible for paying the entire premium amount,” says Tamara Durbin, a certified financial planner in Huntington Beach, California.

The decision to opt into COBRA partially depends on your ex-spouse’s coverage, says Crystal Cox, a CFP in Madison, Wisconsin. “My husband’s health insurance is amazing,” she says. “If we were to get divorced, I would strongly consider using COBRA versus going on my own health plan.”

Have you checked the marketplace?

For many people, COBRA will be pricey. (Plus, it’s temporary.) To see what other plans might meet your needs and budget, shop the government health insurance marketplace. Start at healthcare.gov, although you may find that your state has its own marketplace site you’ll use.

If you’re not sure how to choose a plan, a health insurance broker in your state can help you consider your choices at no cost to you.

“It’s important for people to know that you don’t have to navigate this on your own,” Cox says.

Are you eligible for Medicare (but not on it)?

If you’re 65 or older and haven’t signed up for Medicare yet because you’ve been on your ex-spouse’s employer group plan, now’s the time to sign up for Medicare. Losing coverage from an employer qualifies you for a special enrollment period that will allow you to sign up even if it’s not an open enrollment period.

If you know when your coverage will end, take action beforehand, says Melinda Caughill, co-founder and CEO of 65 Incorporated, which offers guidance on Medicare. “That’s ideal to avoid a gap in coverage,” she says.

Are you on Medicare now?

If you’re 65 or older, you or a spouse must have worked and paid Medicare taxes for at least 40 quarters (10 years) to qualify for free Medicare Part A. Most people have enough work history to qualify, but if you don’t have enough credits on your own, you can still qualify for free Part A based on your ex-spouse’s work history — provided you were married for 10 years or longer. (Your ex must also be at least 62 years old.)

If you weren’t married long enough or your ex is 61 or younger, you’ll pay $506 per month for Medicare Part A in 2023 if you’ve worked and paid Medicare taxes for fewer than 30 quarters. If you worked and paid Medicare taxes for 30 to 39 quarters, you’ll pay $278 per month.

If you remarry, you can no longer qualify for free Medicare Part A based on your ex-spouse. “You can, however, qualify based on your new spouse’s history, but they must also have enough credits and be 62 years of age,” says Cameron Valadez, a CFP in Riverside, California.

A divorce also might affect your costs for Medicare Part B and Part D, which require extra premium payments if your income is over a threshold amount. If you’ve been paying an income-related monthly adjustment amount, or IRMAA, and your household income is lower post-divorce, you can send a request to lower your premiums.

This article was written by NerdWallet and was originally published by The Associated Press.

Source: nerdwallet.com

Apache is functioning normally

September 12, 2023 by Brett Tams

Budget-friendly ways to give your cave an upgrade

Setting up a bachelor pad often means preparing for the good, bad and ugly—weekend catch-ups, curated dinners and well, (even) unplanned visits. Having a space you can call your own is a blessing, more so if you’ve just begun adulting. While livening it up is often perceived as an investment that demands one to shell out big bucks, the key is to find creative ways and pay attention to detail. “While furniture is the foundation of a bachelor pad, it’s these finer details in decor that truly enhance the living experience and elevate a bachelor pad from simply being a space to live in, to a place that feels like a thoughtfully curated home,” opines Manjul Jayakumar, co-founder, Cananor Guild, a handcrafted luxury home decor brand, adding, “Beyond the usual furniture, your choice of bed linens, napkins, and table linen can make a marked difference in the ambiance. Good quality napkins, especially for the bar, are invaluable. They serve a functional purpose and add an air of sophistication during cocktail nights. As for those spontaneous nights when friends decide to stay over, having a few extra bath towels or at the very least having sets of hand and face towels is essential. This touch ensures that overnight guests feel comfortable.”

Hues To Choose

While the color palette may be minimal, young decorators are introducing textural interest through their choice of fabrics. Linens with different weaves, patterns, and finishes are favoured for their ability to add depth and character to the decor without overwhelming the space. “Youngsters are opting for neutral and monochromatic colour schemes in their home decor. Shades of white, beige, grey, and muted pastels dominate the scene. These colours not only create a serene atmosphere but also allow for easy mixing and matching of linens and cushions,” avers Aradhana Dalmia, founder of The Artemist, a new-age art consultancy.

A bachelor’s pad is a canvas for self-expression, where art and decor can merge to create something young and fun. “One can definitely play with some quirky sculptures, funky wallpapers and colour blocking. Bachelors would also love to have an area dedicated to entertainment which can be done up with some very cool and affordable artworks, such as our ‘deck of cards’ or ‘vintage chronicle’ series,” she says.

Common Mistakes To Avoid

Balance style and functionality: One of the most prevalent mistakes among youngsters is favouring style at the expense of functionality. While aesthetics are undoubtedly crucial, remember that your bachelor pad should also serve as a practical living space. Prioritize furniture and decor that not only looks good but also fulfills a purpose.

Interiors and soft furnishings: “It’s common for individuals to underestimate the profound impact that linens and soft furnishings can have on their living spaces,” notes Jayakumar, adding, “These items are often seen as mere accessories, but they play an essential role in elevating the overall look and feel of your home. The right choice of linens and cushions can introduce texture, color, and warmth, thereby breathing life into an otherwise sterile environment.”

Embrace personalisation: Your home should be a reflection of your unique personality and interests. A frequent misstep in decorating is relying on generic, mass-produced items that lack character. Infuse your bachelor pad with your personal touch by incorporating unique artwork, souvenirs from your travels, or engaging in DIY projects. These elements will imbue your living space with a sense of authenticity, making it truly yours.

Latest Trends In Home Décor For Millennial Home Owners

As quality gathers weightage over quantity, sustainability over excess and personal expression within the boundaries of simplicity; multi-functional pieces like bed linens with storage pockets or table linens with spill-resistant coatings, are highly sought after today.

The demand for contemporary artworks, quirky sculptures, 3-D art or multi-functional installations is on the rise. However, it’s important to understand that your space should not only be Pinterest-worthy or café-like, but also functional and enjoyable for everyday living.

“Your chosen decor, whether an installation, sculpture or painting should never become an eyesore,” concludes Dalmia, with a fail-safe advice: let your space reflect your individuality, but ensure it suits your pocket and stands the test of time.

Image credits: Studio Artemist

Source: mansworldindia.com

Apache is functioning normally

September 11, 2023 by Brett Tams

FOMO spending stands for “fear of missing out,” meaning you are dropping dollars to keep up with what others are doing. That might mean anything from trying the skincare product a favorite celeb swears by to dining at the super-pricey new omakase place all your friends are raving about or even signing your toddler up for an enrichment class because your neighbor says it’s a fab headstart.

The fear of missing out can change how many people relate to their cash. It can trigger impulsive and compulsive spending and lead to “splashing out” on things they never had any intention of purchasing. In other words, it can motivate them to live (too) large and wind up with pricey credit card debt and little progress towards their savings goals.

If you’re wondering how to stop FOMO spending, know this: It doesn’t mean subsisting on ramen and never traveling. It does mean being mindful and meaningful so you don’t get caught up in trying to match what your free-spending friends may do. Here, you’ll learn more about FOMO spending and how not to overdo it.

Wait, Back Up—What Is FOMO?

FOMO, or Fear Of Missing Out, is a feeling of anxiety someone might experience about not being part of an event that is happening, usually triggered these days by seeing social media posts from friends enjoying an activity (from a Taylor Swift concert to a holiday in Croatia) and wishing you were part of the fun. While it’s certainly true that businesses employ FOMO tactics to get you to buy things, it’s not just a sales strategy.

Nick Hobson Ph.D., says “While the fear of missing out has always been there, the explosion of social media has launched our young people headfirst into the FOMO experience.”

For many people, social media can be their main community lifeline, and having the impression that you are not part of the “in” group is enough to trigger a stress response like FOMO.

FOMO Spending Definition

So how is FOMO spending defined? It’s when a fear of missing out propels you to spend money (perhaps too much money) to feel as if you are part of the crowd and keeping up with your peers.

Examples could be feeling as if two far-flung vacations a year are must-haves because that’s what your coworkers do. Or perhaps it means plunking down four figures on a designer bag because all your friends have one. At a smaller scale, it could mean joining the other moms every morning after drop-off for a fancy latte. It’s all part of feeling as if you’re on the same level as your peers…and it all can add up.

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

FOMO Spending to Keep Up with Peers

How widespread is FOMO spending? One recent study found that almost 40% of more than 1,000 Americans ages 18 to 34 said they have gone into debt just to keep up with their friends’ lifestyles. This is FOMO taken the financial extreme.

People may try to overcome FOMO by spending more than they have on things like travel, clothes, food, and going out. Whether it’s bigger “once-in-a-lifetime” experiences you can’t miss out on like trips, music festivals, or weddings, or even smaller events like dinner and drinks, FOMO spending can impact your finances and ability to build wealth over time.

• FOMO spending often stems from peer pressure to buy something you can’t afford so that you can still participate in a group.

• It could stem from feelings of insecurity; you want to show others that you fit in and do so by spending more than you might otherwise.

Unfortunately, this can add up to extra spending, money stress, and debt.

Ready for a Better Banking Experience?

Open a SoFi Checking and Savings Account and start earning 1% APY on your cash!

How Many People FOMO Spend?

As noted above, one recent study found that 40% of people admit to FOMO spending. And those are the ones willing to admit to it. The figure could be considerably higher.

One study found almost twice that percentage of people admitted to going into debt to keep up with their friends’ spending. That’s a startling figure and shows just how common FOMO spending can be.

💡 Quick Tip: Your money deserves a higher rate. You earned it! Consider opening a high-yield checking account online and earn 0.50% APY.

4 Tips to Avoid FOMO Spending

Reining in FOMO spending can be hard, especially if your friends are truly living at a different income level than you. But odds are, some of your friend group might be in the same situation and are overspending in an effort to impress. You can avoid FOMO shopping or at least cut back on spending by trying these tips:

1. Suggest Free Alternatives

The first way to conquer FOMO spending is to simply stop spending! While it’s of course easier said than done, why not come up with a free alternative when a friend suggests plans?

Meeting for up for a $10 bubble tea at a cafe could just as easily turn into sitting on your couch with a homemade cup of joe. Friends want to go out to the movies or the mall? Suggest visiting a museum on a day they offer free admission instead.

2. Limit Your Card Usage and Carry Cash

Limiting your spending on credit or even debit cards and making the majority of your purchases with cash will drastically impact how often you impulse-spend on something when the feeling of FOMO creeps in.

If you only withdraw a certain amount before heading out to dinner or the bar, you’ll already have a pre-set budget that you know you feel comfortable spending. So maybe you only have one pricey cocktail or skip coffee and dessert: You can still have a great experience going out.

3. Create a Budget and Stick to It

Along the same lines, creating a monthly or even weekly budget may also help you cut down on FOMO spending. Your budget can and should include money for savings or big-ticket items like travel you know you have coming up. Having a budget can give you guardrails and help you focus on the big-picture rather than getting caught up in the FOMO moment.

By putting some money towards future goals and then calculating how much “fun” money you have left over after bills, you’ll know exactly when you’ve reached your limit. While making a budget might not help you eliminate FOMO spending altogether, you’ll at least give yourself more constraints if you limit yourself to a specific spending amount.

4. Lower Your Social Media Exposure

Ready for another way to stop spending so much? The endless scrolling on platforms like Facebook, TikTok, and Instagram offer some instant gratification, but social media is one of the main contributing factors of FOMO.

Targeted ads, influencers touting products, and even your own friends’ posts can all conspire to budget you toward spending too much. Seeing all the wonderful shiny things and exciting experiences out there can lead you to splurge (and often).

Many people find their guard is especially down at night, and that’s when they are likely to snap up skincare products, a new watch, or a hotel room overlooking the beach. If you can relate, trade in your laptop or phone time before bed for a good old-fashioned book or movie. You won’t wake up the next morning with that guilt about spending money.

If You Must Spend, Still Plan Ahead

You won’t be able to avoid FOMO spending all of the time, so it’s also important to have a strategy in place for making the best use of your time and money if the feeling kicks in.

Some people consider their fixed vs. variable expenses and build in a little extra spending money as part of their discretionary spending. If you know you have, say, a cash cushion of $100 or $200 a month, this can help with those moments when you decide you want to “keep up with the Joneses.” You can decide if this is the moment to splurge or not.

Delayed Gratification

If you have a sudden urge to buy something because of FOMO, try instead to write the item down, whether in a Notes app on your phone or even just a physical piece of paper, and come back to it 24 hours later.

This will help you avoid impulse purchases just because something is on sale, for instance, or your friend just bought it. You can evaluate in a day if it’s something you still really need. Some people even stretch that 24 hours out to a full month with what’s known as the 30-day spending rule.

Buying in Person

Nothing crushes the FOMO spending feeling more than forcing yourself to trek to an actual physical store to make a purchase.

Too many times, FOMO spending happens when you are online shopping and the ease of delivery right to your door doesn’t make you think twice about your purchase.

Making that easy impulse purchase into a chore can be a buzzkill that helps you save big-time.

Introducing SoFi Checking and Savings

Managing your money well can mean recognizing FOMO spending and seeing when it may fit with your budget and your money goals. It can take wisdom and discipline, but it can keep you out of debt and help you build wealth.

This is where the right banking partner comes in; one who can help you see the big picture on your spending and keep tabs on your cash flow. Like SoFi.

Better banking is here with up to 4.50% APY on SoFi Checking and Savings.

FAQ

How do you deal with FOMO buying?

Recognizing FOMO buying is the first step to minimizing it. You might avoid social media apps that trigger this kind of spending; find free alternatives to pricey outings your friends suggest; or tweak your budget to allow for small splurges and stick within those spending limits.

How can you stop being affected by FOMO?

Avoiding FOMO is a very personal thing. Some people avoid or even delete social media apps that trigger overspending; others have honest talks with their friend group about their financial limits; still others decide to sidestep certain outings with friends that they know will bust their budget and join them for low-cost get-togethers instead.

What is FOMO spending?

FOMO spending is when you buy an item or experience because you don’t want to miss out on something “everyone else is doing.” Some people may think of it as responding to peer pressure. You purchase, say, a status watch or take a pricey vacation not because you can comfortably afford it but because you want to “keep up with the Joneses.”

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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Source: sofi.com

Apache is functioning normally

September 8, 2023 by Brett Tams

Aer Lingus is the flag carrier of Ireland. The airline goes back to 1936 when the carrier was called Aer Lingus Teoranta.

When you participate in the AerClub, the loyalty program of Aer Lingus, you earn Avios that are redeemable for award flights on Aer Lingus, as well as its partners British Airways and Iberia. You can even transfer Avios between these programs for free.

Here’s your guide to Aer Lingus and its frequent-flyer program.

About Aer Lingus

Headquartered in Dublin, Ireland, Aer Lingus flies to nearly 100 destinations in 23 countries, including the United States.

Combined with its partners, you’ll be able to fly to about 150 destinations. The airline operates under three brands: Aer Lingus, Aer Lingus UK and Aer Lingus Regional.

Aer Lingus operates direct flights from Dublin and Shannon airports, as well as from Manchester, England, to the following U.S. cities.

From Dublin

Cleveland.
Hartford, Connecticut.
Los Angeles.
Newark, New Jersey.
Orlando, Florida.
Philadelphia.
San Francisco.
Washington.

From Shannon

From Manchester

Aer Lingus fare classes

When booking transatlantic Aer Lingus flights, you’ll have a choice of several fare classes: Saver, Smart, Flex, Business and Business Flex. The higher the fare you purchase, the more extras will be included.

Each fare type includes the following items:

Saver

Carry-on bag (22 pounds/10 kilograms).
Small personal carry-on item.
Complimentary meal.

Smart

No change fees.
Checked bag (one 50 pounds/23 kilograms bag in economy or three 50 pounds/23 kilograms bags in business class).
Advance seat selection.
Eligible for a credit voucher.

Flex

Eligible for a cash refund (minus the fees).

Business

Dedicated check-in line.
Airport lounge access.
Lie-flat seats.
Complimentary Wi-Fi (on Airbus A330 and Airbus A321neo Aer Lingus aircraft).
Luxury dining.
Standby for earlier flight.
Fast Track through security at Dublin Airport.
Refundable fare (minus 15% and fees).

Business Flex

Fully refundable fare.

Aer Lingus business class aircraft

Aer Lingus operates three types of planes on its transatlantic routes: Airbus A330-200, Airbus A330-300 and Airbus A321neo LR.

Aer Lingus A321neo business class

Just 16 lie-flat beds are available in business class on the Aer Lingus Airbus A321neo plane. The seats are arranged in 2-2 and 1-1 configurations in a single-aisle cabin.

Aer Lingus A330-200 business class

Aer Lingus doesn’t operate a ton of routes with an Airbus A330-200, but it’s still possible you might fly this aircraft between Ireland and the United States, especially on routes from Dublin to either Los Angeles or San Francisco.

This business-class cabin features 23 seats arranged in a 1-2-2 or 1-2-1 configuration. The seats are 22 inches wide and provide 58 inches of pitch.

Aer Lingus A330-300 business class

The largest aircraft in the fleet, Airbus A330-300 more commonly operates Aer Lingus flights to and from the United States. The seats are the same size as its A330-200 counterpart, but because it’s larger, you’ll find 30 lie-flat seats arranged in a 1-2-1 or 1-2-2 configuration.

How to earn Aer Lingus Avios

Aer Lingus AerClub members earn Avios, the same currency shared by British Airways Executive Club, Iberia Plus, Vueling Club and Qatar Airways Privilege Club.

Earn by flying

You can earn AerClub Avios by flying Aer Lingus and its partners, such as British Airways and United Airlines.

On Aer Lingus flights, the number of Avios you’ll earn is based on how much you spend on the ticket and the currency you used to pay for the flight:

3 Avios per 1 euro.
4 Avios per 1 British pound.
3 Avios per U.S. dollar.
2 Avios per Canadian dollar.

If you fly British Airways or United, you’ll earn Avios based on the purchased fare class and the percentage of the distance flown.

Earn by spending on credit cards

Chase issues the Aer Lingus Visa Signature® Card. It earns 3 Avios per dollar spent on Aer Lingus, British Airways, Iberia and LEVEL; 2 Avios per dollar spent on hotel accommodations purchased directly from hotels; and 1 Avios per dollar spent on all other purchases.

The current sign-up bonus is: Earn 75,000 Avios after you spend $5,000 on purchases within the first three months of account opening.

Earn by transferring points

AerClub is a transfer partner of American Express Membership Rewards and Chase Ultimate Rewards®. Points transfer at a ratio of 1:1 in both cases.

If you have Marriott Bonvoy points, you can transfer them to AerClub at a ratio of 3:1, with a bonus of 5,000 Avios for every 60,000 Marriott points converted at once.

Transfer Avios from partners

Use avios.com to transfer Avios from either British Airlines or Iberia to Aer Lingus. If you need to transfer Avios from Qatar, use British Airways as an intermediary first and then follow the next step to transfer them to Aer Lingus.

What are Aer Lingus Avios worth?

NerdWallet values British Airways Avios to be worth 0.8 cent each. Because Avios can be transferred from British Airways to Aer Lingus, we’ll say that they’re worth the same. Keep this in mind and use it as a target value when redeeming AerClub Avios for flights.

How to redeem Aer Lingus Avios for maximum value

You can redeem Aer Lingus Avios for awards on Aer Lingus, British Airways and Iberia only, so you don’t have many options to maximize the value. However, you still can get a decent deal redeeming Avios for award flights.

To redeem AerClub Avios, you have to log in on avios.com with your Aer Lingus credentials. The redemption rates depend on the distance you fly, the season and the class of service.

U.S. East Coast to Ireland on off-peak dates

One of the best Avios redemptions through Aer Lingus is for award flights between the East Coast of the United States and Ireland during off-peak season. The one-way mileage rate is just 13,000 Avios in economy class and 50,000 Avios in business class. You’ll pay $116 to $138 in taxes, but it’s still a great deal.

Ireland routes in the East Coast travel zone include:

Cleveland.
Minneapolis.
Philadelphia.
Washington.

U.S. East Coast to Europe on off-peak dates

If Ireland isn’t your destination, you can connect to other European cities that Aer Lingus flies to for an additional 4,000 Avios. So, you’ll redeem 17,000 Avios for an Aer Lingus economy flight anywhere in Europe on off-peak dates.

U.S. West Coast to Ireland on off-peak dates

West Coast residents can take advantage of some great redemption rates on routes to and from Ireland. A one-way economy flight is going to cost you 16,250 Avios, and a business class flight will cost 62,500 Avios.

Ireland routes in the West Coast travel zone include:

Los Angeles.
San Francisco.

Aer Lingus AerClub, the elite status program

Status levels and benefits

Launched in 2016, AerClub is quite a newcomer to the airline loyalty program scene. It has four membership levels: Green, Silver, Platinum and Concierge. If you sign up for the AerClub program, you automatically become a Green member, so technically there are three elite tiers.

Depending on your elite level, benefits include priority check-in and boarding, lounge access, complimentary bags, complimentary upgrades, free Wi-Fi and waived change fees.

How to earn Aer Lingus elite status

Achieving elite status in the AerClub program requires earning Tier Credits, which are awarded based on your route and fare type. The more Tier Credits you earn within a qualification period, the more you progress in the elite levels. Keep in mind that only Aer Lingus ticketed and operated flights earn Tier Credits.

The qualification period is based on when you join AerClub, so make sure to remember the date you signed up as a member. The Tier Credits reset to zero annually on your anniversary date.

European flights earn a different number of Tier Credits than transatlantic flights ticketed and operated by Aer Lingus.

Here’s how many Tier Credits you’ll earn on flights within Europe:

And here’s how many Tier Credits you’ll earn on transatlantic flights:

Keep in mind that the earning rates will change for travel after Oct. 1, 2023.

Aer Lingus AerClub recapped

As a relatively new airline loyalty program, AerClub still has a long way to go. Members can redeem Aer Lingus Avios for award flights on Aer Lingus or its partners. The option to transfer Avios to British Airways, Iberia and Qatar also greatly expands their use.

(Top photo courtesy of Aer Lingus)

How to maximize your rewards

You want a travel credit card that prioritizes what’s important to you. Here are our picks for the best travel credit cards of 2023, including those best for:

Source: nerdwallet.com

Apache is functioning normally

September 8, 2023 by Brett Tams

Food stamps, or SNAP (Supplemental Nutrition Assistance Program) benefits, help millions of Americans who earn lower incomes or face economic hardship feed their families. In one recent year, 12% of all Americans accessed this benefit.

In the not too distant past, however, SNAP benefits weren’t always the most convenient way to go food shopping. A person had to go to the store and pay for their groceries with the program’s EBT card. Today, however, as so much of life is going digital, the United States Department of Agriculture (USDA) offers an online purchasing program to make food stamps more convenient for residents of every state. It’s becoming easier to use SNAP benefits online.

Here, you’ll learn more about how, where, and when you can use these benefits to grocery-shop online.

What Are Food Stamps?

“Food stamps” is an older, but still commonly used term to describe SNAP, or the Supplemental Nutrition Assistance Program.

SNAP is designed to provide nutritional assistance to low-income families, as well as the elderly, disabled, and people who have filed for unemployment. SNAP is a federal program administered by the USDA’s Food and Nutrition Service, which has a network of local offices.

While SNAP doesn’t cover all the items you might pick up at the supermarket, it can significantly cut your grocery bill.

• You can use food stamps to purchase meat, poultry, and fish; vegetables and fruit; bread and cereal; dairy products; snack food; and seeds and plants that produce food.

• However, you can’t use them to purchase tobacco, wine, beer, liquor, vitamins, prepared food, and nonfood items like cosmetics, hygiene items, and cleaning supplies.

Everyone on food stamps has a bank card called an EBT card, backed by the government. The program allows for customers to pay in-store and increasingly online, using their EBT just like a debit or credit card.

The maximum monthly food-stamp assistance you can get varies by where you live and how many people are in your household. A family of four living in the U.S. can now receive around $939 a month.

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

Who Qualifies for Food Stamps?

A household is eligible for Food Stamps, or SNAP, when it meets specific criteria. Each state has an income limit that SNAP households must stay under. Additionally, they may factor in your finances and savings to determine your eligibility.

To apply for food stamp benefits or to get information about the SNAP program in your area, you can contact your local SNAP office. You can find local offices and each State’s application on the USDA national map .

Each state has its own application form. If your state’s form is not on the web yet, you can contact your local SNAP office to request a paper form.

Recommended: Average Grocery Budget for a Family of 5

Can You Use Food Stamps Online?

Yes, food stamps can be used online. Thanks to the expedited expansion of an online purchasing pilot program run by the USDA’s Food and Nutrition Service, households receiving SNAP benefits in any of the 50 participating states (along with the District of Columbia) can now use EBT to pay for groceries online from select retailers.

If a retailer is enrolled in SNAP’s online program, people on food stamps can select foods eligible for EBT benefits online and then arrange for in-store or curbside pickup. In some cases, it may be possible to have your groceries delivered. If the retailer charges a delivery fee, however, you cannot use your benefits to cover that fee.

💡 Quick Tip: Most savings accounts only earn a fraction of a percentage in interest. Not at SoFi. Our high-yield savings account can help you make meaningful progress towards your financial goals.

What Stores Accept Food Stamps Online?

You now know the answer to “Can food stamps be used online?” The next question is probably, “Where exactly can I use food stamps online?”

Fortunately, many stores now accept food stamps online. While Amazon and Walmart are among the best known retailers for online EBT shopping, the number of stores accepting EBT card payment online is continuing to expand.

• FreshDirect, an online grocery delivery service, now delivers for free to SNAP participants in some zip codes in the New York metropolitan area.

• Instacart, a grocery delivery service, is currently partnering with many local stores in the U.S. to offer SNAP EBT benefits. The latest version of the Instacart app should display whether your local store offers EBT SNAP.

Which retailers (and which specific locations) participate in the online SNAP program will vary from one state to another, so it’s a wise idea to check which options are available in your area.

Here are some of the retailers that are now accepting food stamps for online shopping (for either delivery or pickup):

• Walmart

• Amazon

• Aldi

• Food Lion

• Publix

• FreshDirect

• BJ’S Wholesale Club

• Kroger

• ShopRite

• Fred Meyer

• Safeway

• Albertsons

• Vons

• Hy-Vee

5 Ways to Use Food Stamps to Buy Groceries Online

The rules for using food stamps online will vary by retailer. Here are some ways this transaction might work.

1. Use Food Stamps on Amazon

For example, when shopping on Amazon, you can add your SNAP EBT card, shop for groceries, and when you check out, you enter your EBT PIN to pay for eligible purchases.

2. Order Groceries With Food Stamps at Walmart

For Walmart, you can order groceries online or through the store’s grocery mobile app. You first need to sign into your Pickup & Delivery account and then select Payment Methods.

3. Use Food Stamps Online at a Local Store

If your local store accepts EBT Online, you’ll see an option to add your EBT card to your account and can then add your card. During checkout, you select EBT as your payment method. You can then enter your PIN and complete your order.

For instance, at ShopRite, you can order groceries online at Shoprite.com or via the store’s mobile app. During checkout, you can select Pay Online and then click the Place Order button. You can then choose the EBT Snap Card as the payment method to complete checkout. That’s another way to use food stamps online.

4. Know Which Are Non-SNAP Items

At some retailers, you can also include non-SNAP items in the same order, but you’d need to pay for them separately with a debit or credit card. If the store charges a delivery fee, that charge would also need to be paid via a separate payment card since service fees are not included in SNAP benefits.

5. Continue to Check As Options Expand

If you don’t find EBT SNAP as a payment option when attempting to order from your preferred grocery store, you may want to keep checking back — the coverage areas and list of participating stores continue to expand.

Recommended: Average Grocery Budget for a Family of 3

Other Ways to Save on Groceries

If you don’t qualify for SNAP benefits or are looking for additional ways to trim your grocery budget, try these tips. They can help you save, regardless of how much you usually spend on food per month.

Plan Your Meals

By planning your meals ahead and buying in bulk, you can save money on food. Say you decide in advance that you’ll buy chicken that’s on sale and make a stir-fry one day, a sheet pan dinner the next, and will grill it as well. You might even double up on your cooking and freeze leftovers for the following week.

Shop Solo and Stick to Your List

Impulse buys have a way of wrecking your food budget, and if you have your family with you at the supermarket, it can be more likely that they will spot enticing and expensive items. It can be more economical to hit the grocery store on your own and stay laser-focused on your list.

Use Coupons

Whether you choose to clip the old-school paper coupons or use some of the digital couponing options, those deals can help you stay on your budget. You may even be able to use coupons in a way that doubles their saving power for even lower prices.

The Takeaway

The Supplemental Nutrition Assistance Program (SNAP) — better known as food stamps — provides assistance to low-income people in the form of an EBT card that can be used to purchase certain types of food.

Many national retailers and supermarket chains now allow SNAP recipients to order eligible groceries online and then go into the store to pick them up, either in-store or curbside, or have them delivered.

Looking to keep better tabs on your grocery (and other) spending? Finding the right banking partner could help.

Better banking is here with up to 4.50% APY on SoFi Checking and Savings.

FAQ

Can you use EBT anywhere in the US?

Yes, if you qualify for EBT, you can use your benefits anywhere in the U.S.

Can EBT be used on DoorDash?

Yes, it can: DoorDash is partnering with Safeway and Albertson to enable shoppers to use EBT as payment in the app.

How much do you get for one person on SNAP?

In 2023, the average benefit for SNAP for a single person is $195 per month, though the benefit could be as high as $281.

Photo credit: iStock/Yana Tatevosian

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

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Source: sofi.com

Apache is functioning normally

September 8, 2023 by Brett Tams

The Offer

Direct link to offer

Chase is offering 65,000 Hyatt points after $5,000 in spend within the first three months when you open a new World of Hyatt Business card and an additional 15,000 bonus points after you spend $12,000 within the first 6 months

Card Details

$199 annual fee (fee is NOT waived the first year)
Card earns at the following rates:
- Earn 4x points per dollar at Hyatt properties
- Earn 2x points per dollar on your top three categories, from a selection of the following eight categories (they call this “Adaptive accelerator”):
  - Dining
  - Shipping
  - Airline tickets when purchased directly with the airline
  - Local transit & commuting
  - Social media & search engine Advertising
  - Car rental agencies
  - Gas stations
  - Internet, cable & phone services
- Earn 2 points per dollar on fitness club and gym memberships
- Earn 1 point per dollar on all other spend
Spend $50,000 or more on the card in a calendar year and receive 10% of redeemed points back as Bonus Points for the remainder of the calendar year (maximum of 20,000 Bonus Points per calendar year)
Earn $100 in Hyatt credit each anniversary year: Spend $50 or more at any Hyatt property and earn $50 in statement credits up to two times each anniversary year
Automatic Discoverist status in World of Hyatt (typically requires 10 Tier-Qualifying Nights or 25,000 Base Points)
Gift up to 5 Discoverist statuses to their company employees (they do not have to be cardholders)
5 Tier-qualifying night credits with each $10,000 in spend on the card in a calendar year
- With World of Hyatt’s 2021 reduced elite status criteria, World of Hyatt Business Credit cardmembers can earn top tier Globalist status with $60,000 in spend on the card now through Dec. 31, 2021.
Access to Hyatt Leverage, Hyatt’s global business travel program that offers special rates to qualifying small and mid-sized enterprises at participating Hyatt hotels worldwide
No foreign transaction fees
No fee for employee business cards
Primary rental car collision damage waiver

Our Verdict

This is the same bonus that the card launched with and an all time high (actually not as good as that only required $5,000 total spend). Hopefully it becomes available as a referral bonus as well. Could definitely be worth it for some people, especially as Chase business cards don’t count towards your 5/24 status (you still need to be under 5/24 to get approved though). We will add this to our list of the best credit card bonuses.

Source: doctorofcredit.com

Apache is functioning normally

September 7, 2023 by Brett Tams

Related: Expert says fall in monthly mortgage arrears indicates Kiwis adapting to the inflationary environment. Credits: Video – AM; Image – Getty Images

ASB has become the only big retail bank in Aotearoa charging more than 7 percent for its two-year fixed mortgages – and other banks could follow, says a leading economist.

Banks have continued to hike their home loan rates, despite the Reserve Bank/Te Pūtea Matua having stopped its increases to the official cash rate (OCR) since May.

Related News

Brad Olsen, Infometrics chief executive and principal economist, told Newshub ASB’s decision reflects the fact retail banks are facing higher international borrowing costs.

“And those higher costs are being passed on to consumers,” he said.

Other banks may follow ASB’s lead, Olsen said – but that depends on whether they want to protect their profit margins at the expense of attracting more customers.

“They might try to absorb some of the increased wholesale rates increases to keep their mortgage rates competitive.”

But there’s “quite a gap” between the one-year fixed rates among the bigger banks, he added.

What are the big banks doing?

Kiwibank currently has the lowest one-year fixed rate among the big banks, while ASB has the highest.

ASB increased a range of its mortgage rates, including its two-year fixed rate which went up to 7.05 percent – the highest in 14 years. ASB also hiked its one-year, four-year and five-year rates by between 0.16 and 0.20 percent.

However the bank doesn’t have “special” rates unlike others.

The Australian-owned bank reported in August its profit for the year ended June was $1.5 billion – up 9 percent on the previous year.

David Cunningham, chief executive of mortgage brokers Squirrel, said the Reserve Bank has already signalled twice Aotearoa has likely hit the peak of the interest rate cycle.

He said longer-term mortgage rates, like the five-years being lower than the short-term rates suggests markets expect the OCR to start falling 2024.

But banks have been slow to increase their term deposit rates for savers, which has helped increase their profit margins as a result.

Banks’ retail profit margins are sitting at about 2.4 percent, a record high, after rising sharply since early last year.

One-year fixed-term home loan rates

Kiwibank – 6.99 pct
BNZ – 7.19 pct
Westpac – 7.25 pct
ANZ – 7.25 pct
ASB – 7.45 pct

Two-year fixed-term home loan rates

BNZ – 6.85 pct
Kiwibank – 6.89 pct
Westpac – 6.89 pct
ANZ – 6.99 pct
ASB – 7.05 pct

Reserve Bank’s moves and the market

The Reserve Bank / Te Pūtea Matua started hiking the OCR in October 2021 to try and tame inflation.

Retail banks then started to hike their interest rates too.

In August, the Reserve Bank/Te Pūtea Matua raised its peak OCR forecast – predicting a 20 to 40 percent chance of a further increase.

“It is awake to the idea that it might have to raise rates again if inflation doesn’t cool as expected,” Olsen said.

Infometrics’ main forecast is for the OCR to remain on hold until the second half of 2024, he added.

And even though the OCR hasn’t changed in months, Olsen said 10-year New Zealand bond rates have gone up 0.28 percent, which is “in line with rising bond rates across the world”.

At the same time, concerns are growing worldwide about persistent inflation and, as a result, many countries’ central banks have raised interest rates.

Stronger-than-expected activity, especially in the US, “has increased the chance that the US Federal Reserve will need to keep increasing interest rates, and for longer”, Olsen told Newshub.

Reserve Bank Governor Adrian Orr.

Photo credit: Getty Images

Inflation and other factors

Factors including domestic food prices, affected by weather events, and higher demand than supply across the economy have driven up domestic inflation, Olsen said.

OPEC+ nations have been cutting production of crude oil to drive higher prices and profits, and they’ve agreed to keep production lower into next year.

In August, Saudi Arabia pledged to cut its output by one million barrels a day, while Russia later announced it would cut output by 300,000 barrels a day.

“Lower fuel prices over the first half of 2023 helped tame overseas-based (tradeable) inflation, but the reintroduction of the full fuel tax, plus higher global fuel prices, will provide a boost to inflation in the September 2023 quarter,” Olsen told Newshub.

The price of Brent crude, which influences global fuel prices, has risen to US$88.20 a barrel – the highest in nearly a year.

It comes after the New Zealand Government’s 25-cent discount on fuel excise ended on June 30.

And the economic and property downturn in China is starting to bite here in Aotearoa too.

“China’s more sluggish economic growth is a challenge for the New Zealand economy and that’s already being seen in the primary sector, with lower revenue for farmers etc. now expected,” said Olsen.

This week, consumer website Canstar released data showing comparisons of mortgage rates and there were a few changes.

Back in August 2021, the average one-year fixed mortgage rate was 2.58 percent – now it’s 7.26 percent.

Canstar’s Jose George said it’s interesting banks are changing their mortgages rates to get in a comfortable position if the OCR did rise.

“Kiwis facing big hikes in mortgage payments may want to try and negotiate a better deal, or look around the market.”

He said some banks offer cashbacks or other incentives to entice new customers, like lower mortgage rates.

With high inflation, weaker economic growth, but at the same time as record-low unemplyoment and a turning housing market, it could make for an interesting year ahead for banks and their customers.

Source: newshub.co.nz

Apache is functioning normally

September 6, 2023 by Brett Tams

The Federal Deposit Insurance Corp. said Tuesday that it was marketing $33 billion in commercial real estate loans it acquired during the receivership of Signature Bank earlier this year. The loans include significant investments in rent stabilized or rent controlled multifamily housing units in the New York metropolitan area.

Bloomberg News

WASHINGTON — The Federal Deposit Insurance Corp. announced Tuesday it would begin marketing $33 billion of commercial real estate loans that once belonged to Signature Bank in New York, which failed during the banking crisis this spring.

The agency said it is setting up joint ventures to market about $15 billion of credits in the portfolio that are secured by rent-stabilized or rent-controlled units to fulfill its obligation to protect low-income housing availability.

“The FDIC will place the rent-stabilized or rent-controlled loans in one or more joint ventures (JV), with the FDIC retaining a majority equity interest in the JV,” the agency said in a news release. “The JV operating agreement will provide certain requirements that facilitate the financial and physical preservation of these loans and underlying collateral.”

Under the Federal Deposit Insurance Act, the FDIC has a statutory obligation to safeguard the affordability and availability of residential real estate for low- and moderate-income individuals. The agency said the $33 billion of loans — which the FDIC retained in receivership following the failure of the New York-based bank in March — are made up primarily of apartments in the New York metropolitan area. The FDIC previously announced it was considering various means of marketing the portfolio in a way that safeguarded the roughly $15 billion of low-income housing secured loans represented in the portfolio.

FDIC said while it will take on a majority equity interest in the joint ventures, ultimately the winning bidders on the loans will be responsible for maintaining the loan portfolio on their terms.

“The winning bidders, or partners, will act as the managing member of the joint venture and will be responsible for the management, servicing and ultimate disposition of the loans,” the FDIC said in a statement. “The JV partner will be required to manage the portfolio in accordance with the JV operating agreement and be subject to stringent monitoring.”

The FDIC tapped Newmark & Company Real Estate to assist in advising on the sale.

The FDIC will be accepting bids for Signature Bank’s former commercial real estate loans over the next three months. The agency indicated that it expects the sales to be finalized by the end of the year. The FDIC said its marketing strategy took into account input from relevant New York municipal and state agencies as well as community groups.

Signature Bank was shuttered by New York State regulators amid mounting withdrawal requests that decimated the bank’s available funds. Signature’s failure, along with that of Silicon Valley Bank, spurred banking regulators to invoke the systemic risk exception that would allow the FDIC to cover uninsured deposits.

Following Signature’s failure, New York Community Bancorp’s Flagstar Bank acquired most of Signature’s deposits and some of its loans from the FDIC. The deal left out $4 billion of deposits related to Signature’s digital banking business, and a $60 billion loan portfolio.

Commercial real estate loans have been viewed with increasing anxiety by banks and regulators amid growing concerns about the disastrous effects delinquencies on such loans could have on the economy.

Source: nationalmortgagenews.com