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Apache is functioning normally

May 17, 2024 by Brett Tams

Sure, you could store all the cash you’re likely to need in the near future in a checking account and call it a day. But that would mean missing out on the many benefits of having a savings account.

While savings accounts don’t offer the returns you could potentially get in the market, they pay interest (generally a lot more than you can earn in a checking account), while still keeping your money safe and accessible. This makes them ideal for housing your emergency funds and money you’re saving for shorter-term goals, like buying a car or going on vacation.

Here’s a closer look at the perks of having a savings account and why this type of account likely deserves a place in your financial toolkit.

What Savings Accounts Are

A savings account is a type of deposit account at a bank, credit union, or other financial institution where you can safely store your money and earn interest. Savings accounts at banks insured by the Federal Deposit Insurance Corporation (FDIC) are typically covered up to $250,000 per depositor. Co-owners of joint accounts at the same bank are typically each insured up to $250,000. Credit unions offer similar insurance through the National Credit Union Administration (NCUA).

Unlike a checking account, which is set up for everyday money management, a savings account is designed to store money you don’t need right away, separate from everyday spending cash. These accounts typically don’t come with checks and debit cards, and some banks may limit you to a certain number of withdrawals per month.

Because savings accounts offer safety, liquidity, and interest, they can be a great place for setting aside money for shorter-term goals, such as:

• An emergency savings fund

• A down payment on a house

• A wedding

• A vacation

• A new car

• A large purchase

• Home renovations

Dive deeper: How Do Savings Accounts Work?

6 Benefits of Savings Accounts

Here’s a look at some of the main advantages of a savings account.

1. You Earn Interest on Your Deposits

Savings accounts earn interest, expressed as an annual percentage yield (APY). That means you’ll earn money just for keeping your funds in the bank, making it a low-risk way to build wealth. Not every savings account offers the same interest rate, however. While the current national average savings yield is 0.57 percent, top-yielding savings accounts are currently earning APYs above 5% percent.

To see how that translates into actual dollars, let’s say you currently have $5,000 sitting in your checking account you don’t need right away, and you transfer it to a 5% APY high-yield savings account. Even if you don’t add any additional money to the account, you could increase your balance in one year to $5,250, just by letting the initial deposit sit in your new savings account.

Recommended: What Are High-Yield Savings Accounts?

Earn up to 4.60% APY with a high-yield savings account from SoFi.

Open a SoFi Checking and Savings account and earn up to 4.60% APY – with no minimum balance and no account fees.

2. Your Money Is Insured

Savings accounts are typically insured by the FDIC or NCUA, depending on where the account is held. That means your money is protected against major losses (up to $250,000) in the event that the bank or credit union goes out of business. You would either be paid that money directly or, more likely, a new account would be opened for you at another bank with the same balance as before. This makes a savings account safer than keeping your money in a sock drawer or under the mattress, where it is susceptible to theft or loss.

3. It’s Low Risk

Savings accounts don’t offer high returns compared to what you could potentially make in an investment account over the long term. However, these accounts won’t let you down either. With many investments, you can lose money over the course or days, weeks, months, and even years. The balance on a savings account, on the other hand, will typically continue to go up over time (unless, of course, you make a withdrawal).

If you have money you plan to use within the next couple of years that you can’t afford to lose, a savings account can be the perfect place to store it.

4. It Doesn’t Require a Large Initial Investment

Savings accounts are easy to open and typically do not require you to make a big initial deposit. In fact, many online-only savings accounts allow you to open an account with $0, so you can start saving from scratch. Savings accounts at traditional brick-and-mortar banks may require deposits of $25 to $100 to open a new account. By contrast, many investments (such as real estate and mutual funds) often require a significant amount of money as an initial investment, sometimes as much as several thousand dollars.

Keep in mind, though, that some savings accounts do offer higher interest rates and low (or no fees) if your balance stays above a certain minimum threshold or you meet other criteria.

5. You Can Separate Money for Different Goals

If you’re saving for a particular goal, like buying a car or putting a downpayment on a home, it can be helpful to keep that money in a separate savings account. This helps to ensure that you don’t blow the money on something else, like groceries or clothing.

If you have several things you’re saving for, you might even want to open multiple savings accounts, such as one for emergency savings, one for a new car, and one for a vacation. Separating money can help you visualize progress toward each goal. Some savings accounts let you organize your savings into separate buckets or “vaults” so you can save toward multiple goals within one account.

6. Easy Access When You Need It

Savings accounts are relatively liquid, meaning you can access your money when you need it by transferring it into your checking account or withdrawing it at an ATM or through a teller at a local branch. That’s not true for many investments, which may take a few days to convert to cash. Some investment products, such as real estate properties, can potentially take months or years to sell off.

That makes a savings account an ideal spot for your emergency fund. When an unexpected expense comes up, you can access your funds immediately — and avoid running up expensive credit card debt — in order to cover it.

That said, the money is not quite as accessible as the money in a checking account. Savings accounts typically don’t come with checks and debit cards, and some banks limit the number of withdrawals you can make to six or nine per month. However, you might see these limitations as benefits, since they encourage saving rather than spending.

Recommended: Can You Write Checks From a Savings Account?

Is a Savings Account Right for You?

Savings accounts offer numerous benefits, including insurance on your deposits, higher APYs than checking accounts, and liquidity. Plus, you generally don’t need a large (or sometimes any) initial deposit to get started.

However, the interest you earn on a savings account may not always keep up with inflation, which means your balance could become less valuable over time. As a result, a savings account is generally not the best place to put the money you are saving for a long-term goal, such as retirement or your child’s college education. You might earn a better return if you invest that money in the market.

If you’re interested in opening a savings account, it’s a good idea to research your options and compare APYs, minimum deposits, balance requirements, and any fees. And if you have a savings account but aren’t satisfied with the perks, there’s likely a better fit for you offering the full benefits of a savings account.

Recommended: Perks of Long-Term Savings Accounts

Opening a Savings Account With SoFi

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 SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQs

What is the benefit of a savings account?

The primary benefit of a savings account is that it allows you to grow your money over time (by earning interest), while still keeping it safe and accessible.

What are the advantages and disadvantages of a savings account?

Advantages of savings account include:

• Earning Interest Savings accounts accrue interest on deposited funds, helping your money grow over time.

• Safety and security Funds in savings accounts are typically insured by the Federal Deposit Insurance Corporation (FDIC) or National Credit Union Administration (NCUA), providing protection against loss.

• Liquidity Savings accounts offer easy access to your funds, making them ideal for emergency savings.

Disadvantages of savings accounts include:

• Lower interest rates While savings accounts offer interest earnings, the rates are often lower compared to other investment options.

• Inflation risk Inflation may erode the purchasing power of your savings over time, especially if the interest earned does not keep pace with inflation rates.

• Fees and minimum balance requirements Some savings accounts may have fees or minimum balance requirements, potentially reducing the overall return on your savings.

How is a savings account most useful?

Savings accounts can be most useful for storing your emergency funds and money you plan to spend in the next few months or years, since they pay interest while keeping your funds safe and accessible. However, returns on savings accounts are often lower than what you could potentially earn by investing in the market over time. That makes these accounts less useful for long-term savings goals like retirement or a child’s future college education.

Photo credit: iStock/PeopleImages

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

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

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

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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.

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.

SOBK-Q224-1855608-V1

Source: sofi.com

Apache is functioning normally

May 16, 2024 by Brett Tams

As a former college athlete, John Bovard has always prioritized exercise. Building a home gym helped him balance health, career and family.

“To be able to walk right downstairs, get our workout in, be back upstairs without any travel time or any commute was something that was our best option,” says Bovard, a certified financial planner and owner of Incline Wealth Advisors in Cincinnati.

The cost to build a home gym ranges from $300 to $15,000, according to home improvement website HomeAdvisor, and depends on your equipment and renovation needs. It may seem daunting and expensive, but there are ways to manage the costs. Here are five tips to tackle a home gym so you gain muscle — not unmanageable debt.

Spot what you need

Before jumping into plans for a dream gym, reflect on your past and current exercise patterns.

“Know the equipment you like that keeps you motivated, so you’re not wasting money,” says Megan Kopka, a certified financial planner at Apprise Wealth Management in Wilmington, North Carolina, “so [the equipment] doesn’t become a clothes rack.”

For some, equipment can mean dumbbells and a strength training machine, which can range from $1,000 to $6,000 or more. For others, a yoga mat and a few light weights, which can total less than $100, may be sufficient. Consider gym add-ons like speakers, floor mats or app subscriptions, which can amplify your workout but increase your costs.

Kopka pays for a Peloton app subscription and says the workouts it provides are affordable and rewarding. “I’m a financial planner. I work all the time,” says Kopka, “I’m planning for everybody else, and it’s just nice to have that online class where they tell you what to do.”

Let your budget do the heavy lifting

Once you have a firm idea of what’s needed for your home gym, create a budget by researching equipment, adding up the costs and factoring in any savings from, for example, canceling a gym membership. Identify equipment you may want to buy new versus secondhand.

Bovard found used equipment through Facebook Marketplace and Play It Again Sports. He says rubber-coated dumbbells or weights with low wear-and-tear can be good second-hand purchases.

It may be tempting to buy everything you want for your gym quickly, but it’s best to build the space over time.

“You’re not going to be able to go from zero to a fully decked-out gym,” says Bovard. Lead with your budget as you decide what to purchase and when, and stagger the purchases to give your bank account a rest.

Stretch your savings

The cheapest way to finance a home gym is to pay with cash. “Savings would be more of a slow and steady route,” says Bovard. “That’s where it would make more sense to save over time and slowly start to accumulate what you need.”

Setting aside cash from your monthly income and building the gym in stages can help you avoid high-interest financing options like a credit card or personal loan. Bovard also suggests checking if you can use funds from a workplace health savings account (HSA) for qualified gym equipment. Your employer may also provide compensation for a gym membership that can go toward home gym costs instead.

Another consideration for how much to invest in the gym: How long do you intend to stay in the house? While a gym may increase your home’s value when you sell, the space should also be adaptable for a future homeowner.

Weigh your financing options

Financing is another way to pay for the home gym. Credit cards can be convenient for purchasing equipment and accessories, but interest rates can be high. To avoid interest, pay off the balance each month or get a credit card with a no-interest introductory period, which can be 15 to 18 months. Earning credit card rewards or points can also help offset other costs.

“Buy now, pay later” providers like Klarna and Afterpay allow borrowers to break up a major purchase into equal biweekly or monthly payments, often with zero- or low-interest plans. You can find buy now, pay later options during checkout at major retailers and fitness companies like Peloton and Tonal. Applying for a buy now, pay later plan typically only requires a soft credit check, so there’s no impact on your credit score, but the convenience can also make it easy to overspend.

Borrowing funds using your home equity or an unsecured home improvement loan is best suited for a gym that requires remodeling that may include electrical and plumbing work. A home equity loan or line of credit uses your home as collateral and has low interest rates relative to a credit card or personal loan, but it can take a few weeks for a credit decision. An unsecured home improvement loan will have a higher interest rate but won’t require your home to secure the loan, and some lenders offer same-day funding.

Stay on track to see results

A home gym pays off if it’s used regularly, so staying consistent with your workouts is important to get the most out of your money. “If you’re not going to use it, it’s expensive,” says Kopka.

Feel comfortable adapting the space as needed, like getting additional equipment or selling anything you’re not using.

After building their home gym, Bovard and his wife realized an added benefit: Their five young kids got involved. “They might watch us work out or they might hang out in there,” says Bovard. “I think that’s a great part of it.”

Source: nerdwallet.com

Apache is functioning normally

May 15, 2024 by Brett Tams

Accrued interest represents the interest that accumulates in between payments on a financial product. Accrued interest can apply to both lending and investment products, ranging from home loans and credit cards to bonds or savings accounts.

Accrued interest is different from regular interest, and it’s an important concept to understand.

What Is Accrued Interest?

When you are investing and earning interest, you’ll probably encounter accrued interest. And in the opposite situation, if you borrow money and owe interest payments, you’ll also deal with accrued interest.

This type of interest accrues in between payments. For instance, if you have a credit card balance of $1,000, and you make a partial payment on the 30th of the month, the remaining balance and any new charges will begin to accrue interest. It will be due on the 30th of the following month.

Think of accrued interest as interest that is building up, bit by bit, until that payment is made. In the case of an investment like bonds, in which you’re essentially loaning money to an entity like the government or a company, the accrued interest is interest earned on the money you invested that is eventually paid to you.
💡 Quick Tip: Whether your check comes the first Wednesday of the month or every other Friday, if you sign up for direct deposit, you know when the money will hit your account. This is especially helpful for scheduling the payment of regular bills. No more guessing when you’ll have sufficient funds.

How Does Accrued Interest Work?

It’s possible to owe accrued interest on a variety of lending products, like credit cards and loans. It’s also possible to earn accrued interest on certain investing products and savings accounts.

Whenever an individual borrows money, they owe interest. They are paying to use that money. On the flip side, when they are investing and giving a financial institution, government agency, or company money to borrow for an investment, such as a bond, then the individual is owed interest.

Accrued Interest When Borrowing Money

When you borrow money, with an installment loan, for instance, interest typically accrues daily. At the end of the month, the accrued interest is added to the total monthly payment amount.

With credit cards, unless you pay your balance in full every month, the same daily accrual happens after the cardholder makes a charge with their card. The interest is building up as the month goes on. How much interest accrues depends on the balance and the interest rate.

Accrued Interest When Saving

Accounts that earn interest, such as certificates of deposits (CDs) and high-yield savings accounts, also often accrue interest daily. The amount of interest accrued is based on the account’s average daily balance. An exception to that is bonds, which generate a fixed interest payment on a quarterly, semiannual, or annual basis.

How to Calculate Accrued Interest

How interest accrues varies by the lender and product that’s generating the interest, which could be a loan, a line of credit, an investment product, or a bank account such as a savings account.

Example of Accrued Interest When Borrowing

To calculate how much interest will accrue daily with a credit card, for example, an individual needs to divide their APR (annual percentage rate) by 365 (for the number of days in a year). Then, they would multiply their current credit card balance by their daily rate. So if a credit card has an APR of 24.37% with a balance of $500, the calculation for how much interest accrues daily looks like this:

24.37 / 365 = 0.067%

$500 x 0.00067 = $0.34 interest that accrues daily

To calculate the monthly interest charge, multiply the daily rate by the number of days in the credit card billing cycle. So if there are 30 days in the billing cycle the calculation would look like this:

$0.34 x 30 = $10.20 in interest

Although credit card interest accrues daily, the total amount accrued is typically not added to your balance until the end of the billing cycle. So if you pay your balance in full by the due date, you can avoid paying accrued interest.

Example of Accrued Interest When Saving

To calculate accrued interest on a savings account, for example, take your yearly interest rate, which banks generally list as an APY, or the percentage of total interest you can earn on your account per year. To find the monthly interest rate, divide the APY by 12 (for the number of months in the year). So, if the APY is 5%, the calculation would look like this:

5 / 12 = 0.416% monthly interest rate

Next, to calculate how much interest you will actually earn on your money, you need to know if the interest is simple interest vs. compound interest. Most savings accounts use compound interest, and it is calculated depending on how often it compounds, such as monthly.

To determine how much annual interest you’ll earn on a balance of $1,000 in your savings account, the formula is:

P(1 + R / N)˄NT

P is the principal amount (the $1,000), R is your APY (calculated in decimal form), N is the frequency of compounding, which is monthly, and T is the amount of time, which in this case is 1 for one year. It would look like this:

1,000(1+ 0.05 / 12)˄12 x 1 = $1,250
💡 Quick Tip: If your checking account doesn’t offer decent rates, why not apply for an online checking account with SoFi to earn 0.50% APY. That’s 7x the national checking account average.

Accrued Interest vs Regular Interest

Accrued interest is different from regular interest. Accrued interest typically indicates interest charges that have accumulated but not yet been paid. Perhaps you have heard the term in this context with student loans: The interest may start accruing (adding up) when the loan is disbursed, but it could only become due at your studies’ completion. You may not be paying the interest just yet, but you can know the interest will be assessed.

Regular interest refers to the interest earned on, say, a home loan. Your payment plus interest is due on a certain date and is not accruing day after day or varying. The “regular interest” involves a known principal and interest rate, as well as a constant monthly payment that is due every month.

Why Is Accrued Interest Important?

Accrued interest shows how interest that an individual owes or is owed adds up. For example, with bonds, it may help you understand the interest that’s accruing so you can make sure you are earning the right amount. Or, if you have borrowed money, you can look at how the accruing interest could add to the amount you owe, which might, in turn, help you manage your money.

In the case of a credit card, if an individual sees how long it will take to pay off a credit card balance over a year or two, they could crunch the numbers on how much interest they will accrue during that time. They may find that paying the debt sooner could save them a lot of money, and then work to create a budget to help them pay down what they owe.

Understanding how that interest builds up is a valuable tool. By better comprehending how much you owe or are owed, you can manage your money and work to enhance your financial health.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Is accrued interest good or bad?

Accrued interest isn’t necessarily a bad or good thing. If someone borrows money, they may not enjoy paying accrued interest, but it is a part of their lending agreement. On the other hand, if someone earns accrued interest on investments or savings, they’ll probably consider it a good thing.

Why do I have to pay accrued interest?

Paying accrued interest is more often than not necessary when someone borrows money. Those payments are required by lenders in exchange for lending money to consumers.

What is the difference between interest and accrued interest?

Regular interest represents the payment made in exchange for borrowing money or as a form of income earned from an investment. Accrued interest represents the amount of interest that builds up in between payments.

How do you avoid accrued interest?

When an individual enters a borrowing agreement, they need to pay any interest they accrue. That said, there are ways to avoid paying accrued interest altogether or to minimize accrued interest payments. For instance, pay your credit cards in full. When you pay the balance in full, you won’t have to pay any accrued interest.

Also, to minimize how much accrued interest you owe on a loan, you can make additional payments. Paying down the principal faster will lower how much interest accrues on a monthly basis. You may even be able to pay off the loan early, which also helps avoid more interest accruing.

Photo credit: iStock/MicroStockHub

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

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

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.

4.60% APY
SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

Our account fee policy is subject to change at any time.

SOBK-Q224-1860719-V1

Source: sofi.com

Apache is functioning normally

May 15, 2024 by Brett Tams

In the hustle and bustle of everyday life, our backyards often become neglected spaces, relegated to a mere patch of grass or an unused corner. Whether you’re decorating your quaint Twin Cities apartment backyard or renovating your Madison, WI, home’s overwhelming green space, with a little creativity and effort, your backyard can be transformed into a serene outdoor oasis — a place where you can relax, entertain, and connect with nature.

Important note for renters: Before making any landscaping or permanent changes to your backyard, please review your lease terms and verify any plans with your landlord.

Turning your backyard into an outdoor oasis

When warm weather arrives, a backyard is not merely an extension of your home but a sanctuary — an extension of your living space that reconnects you with nature’s beauty. Once you’ve embraced this vision, we can dive into the practical steps to turn your dream oasis into a reality.

1. Think big picture when imagining backyard design ideas

It’s essential to begin this process by identifying how you want to use the space. Do you envision it as a cozy retreat for reading and relaxation, a vibrant hub for social gatherings, or a combination of both? Understanding your needs and preferences will guide the design process and ensure that your backyard oasis reflects your lifestyle.

Dorina Williams, founder of Savvy in the Kitchen, recommends creating separate zones within your backyard to accommodate various activities. “By creating different zones for different activities you can split the backyard into separate sections depending on different things you like doing,” Williams notes. “This may range from an outdoor dining spot to a lounge area where one can relax and even an entertainment place specifically meant for children or pets. Through this, you will add functionality, and your outdoor space looks organized with purpose behind it.”

Dorina also recommends considering an outdoor kitchen when planning your backyard makeover. “You can easily transition from indoor to outdoor living [with an outdoor kitchen]. Making margarita pizza in an outdoor pizza oven, grilling delicious steaks, or mixing up refreshing summer drinks al fresco, are all wonderful ways to entertain family and friends and create lasting memories.”

2. Embrace nature

Harness the beauty of nature by incorporating natural elements into your backyard design. Katie, owner of Cast Iron Idaho, urges those on a backyard designing journey to add more flowers. “You need more flowers, a lot more flowers,” Katie says.

“Try easy self-seeding annuals like poppies, hollyhocks, larkspur, amaranth, and clary sage which will increase in abundance each year in your garden. Support pollinators, plus your own backyard joy, by choosing varieties that bloom throughout spring, summer, and fall. For example, in my area [Intermountain West] penstemon, lupine, columbine, blanketflower, and sunflowers are good choices.”

Candace Godwin, with The Coeur d’Alene Coup, recommends incorporating vegetables to take your garden to the next level. “If your flowering patio pots are looking the same year after year, punch them up by adding a few veggie plants,” Godwin recommends. “It’s a fantastic way to add a variety of new shapes, colors, and textures to your flowering containers and maximize your vegetable garden’s yield.”

Godwin suggests choosing a variety of plants that bloom at different times of the year to ensure year-round interest and vibrancy in your outdoor space. “Select vegetable plants that complement the aesthetic and growth habits of your flowering plants. Similar to flowers, you can find “thrillers, spillers, and fillers” when it comes to vegetable plants. Consider your color palette as well, and choose vegetables or herbs with foliage that will harmonize with your flowers,” Godwin notes.

Garden-Mom suggests considering outdoor decor along with your planting plan, for the ultimate summer aesthetic. “The addition of structures to your backyard has a variety of benefits. Not only will it be eye-catching, but it will also provide a foundation for your plants to grow around,” Garden-Mom shares. “For example, morning glories wrapped around an arbor, a trellis for your clematis or climbing rose, a pergola to sunbathe under, a wall fountain with relaxing running water, or pedestals with urns of boxwoods or topiaries on them to create a Mediterranean feel; the options are endless.”

Garden-Mom also warns that with gardening comes potential wildlife. “Once your backyard ecosystem starts to thrive, you can find rabbits, birds, butterflies, and others wanting to call your backyard their home. For the wanted guest, you can purchase a black wrought iron shepherd hook to hang birdhouses, bird feeders, and hanging flower baskets. You could even add a birdbath. This will most definitely invite the songbirds and hummingbirds to come to your space for a visit,” Garden-Mom shares.

3. Incorporate lighting

Extend the enjoyment of your backyard oasis into the evening hours with strategic lighting. Tazim Damji, with Being Tazim, recommends leaning into lighting to set the tone of your backyard. “Lighting is the key to setting the mood, especially as the sun sets,” Damji shares. “Hang some lights across the patio or pergola to create a magical atmosphere, or place solar lanterns along your pathways for a whimsical touch. Arrange a few battery-powered candles near the seating area to cast a soothing glow after sunset, enhancing the relaxing ambiance of your outdoor space.”

Susan Brinson with House of Brinson, recommends paying attention to detail around lighting when thinking of backyard design ideas: “Lighting brings so much mood to an outdoor space, and with so many solar options available, the installation doesn’t have to be a big project,” Brinson notes. “Think of lighting in three zones: along the ground for paths, mid-level on tables, and above head for lighting like string lights. Lighting has an instant impact. Thoughtfully placed lighting will not only enhance the aesthetic appeal of your backyard but also ensure safety and functionality after dark.”

4. Don’t forget the personal touches

Infuse your personality into your backyard oasis by incorporating personal touches and decorative elements. Display outdoor artwork, sculptures, or pottery to reflect your style and incorporate elements that evoke fond memories or inspire creativity, such as a hammock for lazy summer afternoons or a cozy reading nook tucked away in a shaded corner. You can add colorful textiles like outdoor rugs, throw pillows, and curtains to inject even more personality and comfort into the space as well.

5. Avoid getting too carried away

While it’s tempting to go overboard with accessories and decorations, strive for balance and simplicity in your backyard design. Meredith Spidel, with The Mom of Year, recommends keeping decor and necessities readily available to maintain the wonderful sunshine vibes associated with summer. “Have an easily accessible storage spot for lawn games and outdoor toys. You don’t want this stuff cluttering your yard, but you DO want to use it,” Spidel shares.

“Plan ahead for summer entertaining with plastic dishware and serving ware as well. The goal of any outdoor space is to be well-used, and nothing is less user-friendly than worrying over broken glasses and plates. Invest in an affordable outside set, and thank yourself later.”

Your oasis awaits

Transforming your backyard into an outdoor oasis is a rewarding endeavor that can significantly enhance your quality of life and connection to nature. By following these backyard design ideas and tips from backyard enthusiasts, you can create a tranquil retreat where you can unwind, entertain, and recharge amidst the beauty of the outdoors.

Whether you have a sprawling lawn or a compact patio, there are endless possibilities for turning your backyard into a haven of relaxation and rejuvenation. Take the time to plan and design your backyard oasis with care, and you’ll reap the rewards for years to come.

Source: rent.com

Apache is functioning normally

May 15, 2024 by Brett Tams

Do you want to find ways to get free Walmart gift cards? Yes, you can get free Walmart gift cards and make some extra money for this popular store. Walmart gift cards are a convenient way to handle your shopping budget, give gifts, or treat yourself. You might be surprised to learn that there are…

Do you want to find ways to get free Walmart gift cards?

Yes, you can get free Walmart gift cards and make some extra money for this popular store.

Walmart gift cards are a convenient way to handle your shopping budget, give gifts, or treat yourself. You might be surprised to learn that there are ways to get these gift cards without paying for them. By joining rewards programs, taking surveys, or using trade-in services, you can earn points that can be redeemed for free gift cards to Walmart.

Before you think this isn’t real, let me tell you – I’ve earned over 110 free gift cards myself. It feels great to use a free gift card to get something I want.

How To Get Free Walmart Gift Cards

Here is a quick list of places to get free Walmart gift cards to get started with:

Below is more information on each method to get free Walmart gift cards.

This is a screenshot I took a couple of years ago of the free gift cards that I’ve earned from Swagbucks as proof. As you can see, it says I’ve earned 109 gift cards over the years! I mainly redeem for free Walmart gift cards, but you can do Starbucks just as easily too.

1. Swagbucks

Swagbucks is a great website to start with if you want to earn free gift cards to places like Walmart.

On Swagbucks, you can earn points (called “SB”) by doing tasks like answering surveys, playing games (like Candy Crush!), downloading apps, searching something on their search engine, and watching videos. Just sign up, fill out your profile, and start earning points to redeem for a free Walmart eGift Card code.

I’ve been using Swagbucks for years, and during that time, I’ve earned over 110 free gift cards myself. Earning points is easy, and the website is very user-friendly.

You can redeem your points for anywhere from a free $5 Walmart gift card to $500 at a time on Swagbucks.

2. Fetch Rewards

Fetch Rewards is an app for your phone (which I personally use at least once a week!) where you earn points by scanning receipts from grocery stores (any grocery store!). You can use these points to redeem Walmart gift cards.

You get points for every receipt no matter what, but you can earn more points if you buy specific items that they feature in their app. These include points for General Mills products (such as cereal), points for Tostitos chips, points for dog treats, and more.

Personally, I don’t really keep track of what I can earn extra points with – I just shop like I normally do and scan each and every receipt.

Fetch Rewards is one of my favorite ways to earn free gift cards as I don’t have to do much to get points. I just shop how I normally do, scan my receipt with my phone (I am literally just taking a picture of my receipt), and then I get points. You get points for every single grocery receipt too.

3. Sign up for the Walmart Rewards program

Walmart Cash is a rewards program for Walmart customers. You earn Walmart Cash by claiming offers on Walmart.com or in the Walmart app. Then, you can use your Walmart Cash for future purchases in-store or online.

Here’s an example of how it works:

If you want to use Walmart Cash in store:

Step 1 – Open your Walmart app and log in.
Step 2 – At the register, use the app to scan the QR code displayed there.
Step 3 – Choose “Use Walmart Cash” to turn your balance into a Walmart eGift Card and use it to reduce your bill.

It’s easy to use, but surprisingly, many people do not know about this rewards program.

4. Upside

Upside is an app that will help you get cash back for your fuel purchases (yes, from when you go to the gas station!). With Upside, you can get around $150 per year in estimated cash back.

Plus, the first time you use the app, you can get a higher amount of cash back in order to get you used to the platform. For my first time using this app, I was able to get $0.74 back per gallon. I bought 12.62 gallons, which means I saved $9.33 all by just using this app for the first time.

Not all gas stations are included in the Upside app, but you can earn rewards by choosing from the listed stations within the app. There are several gas stations that qualify near me, so I’m sure there are some that you go to as well.

This app does require you to select the gas station in the Upside app before you actually pump the fuel into your car, so this is an important step.

Then, you earn rewards that can be redeemed for free Walmart gift cards.

You can sign up for Upside here.

5. American Consumer Opinion

American Consumer Opinion is a company that pays people to share their opinions through surveys.

It’s free to join American Consumer Opinion, and surveys usually pay around $1 to $5 each. Once you reach a certain amount, you can redeem your earnings for free Walmart gift cards (or other rewards like PayPal cash).

Click here to join American Consumer Opinion.

6. Survey Junkie

Survey Junkie is a popular website where you can earn free Walmart gift cards by taking surveys online in your spare time. Answering three surveys a day on Survey Junkie can get you about $40 worth of Walmart gift cards each month.

Please click here to sign up for Survey Junkie.

7. Branded Surveys

Branded Surveys lets you earn points by answering questions in surveys. You can use these points to get free Walmart gift cards. Surveys take 5 to 15 minutes and pay between $0.50 and $5.00 each.

Click here to join Branded Surveys.

8. PrizeRebel

PrizeRebel is a website where you earn points by doing tasks like surveys and watching videos. You can use these points to get free Walmart gift cards.

I logged in last week and I had enough points for around $150 in free gift cards. I redeemed them all at once, and it is definitely some nice extra spending money!

Click here to sign up for PrizeRebel.

9. PayPal Honey

PayPal Honey is a free browser extension that automatically finds and applies coupon codes and promo codes when you shop online. By using it, you earn points that can be redeemed for extra money.

Here’s how it works:

Shop online as you normally would.
At checkout, Honey will find and apply the best coupon codes for you.

10. Ibotta

Ibotta is an app that gives you cash back for shopping, such as at grocery stores. After you shop, simply upload your receipts to earn cash back that you can use for free Walmart gift cards.

Here’s a quick summary of how you use Ibotta:

Download the Ibotta app.
Check to see what the available offers are before you go to the grocery store (such as Honey Nut Cheerios or oranges).
Take a picture of your grocery receipt using your phone with the Ibotta app.

Some of the offers I see when in the app, so that you can get a better idea, include:

$1.00 cash back for buying General Mills cereal (such as Honey Nut Cheerios)
$0.50 cash back for buying mandarin oranges
$1.00 cash back for buying Starbucks Cold Brew
$5.00 cash back for buying Colgate toothbrushes

And so much more.

You need at least $20 in earnings for a free Walmart gift card. You can also redeem your points for many other gift cards, as well as PayPal cash or even a deposit straight to your bank account.

You may be wondering how Fetch Rewards and Ibotta differ. They are very similar and I use both. For me, I use Fetch Rewards and Ibotta at the same time for the same receipts. It’s a way to get even more points for doing something very similar.

You can join Ibotta here.

11. Rakuten

Rakuten lets you earn cash back on purchases from over 3,500 stores, such as Walmart, Target, Best Buy, Sephora, Old Navy, Chewy, Nike, and more.

When you buy something, you get a percentage of your purchase back in cash. You can receive your earnings through check or PayPal once a quarter.

While Rakuten doesn’t directly provide free Walmart gift cards, you can use the cash you earn from Rakuten for shopping at other stores like Walmart.

You can sign up for Rakuten for free here.

12. Find Walmart gift card giveaways

If you’re looking to get free Walmart gift cards, entering sweepstakes and giveaways can be a fun way to give it a shot.

To earn free Walmart gift cards through giveaways, you can:

Follow brands on social media like Instagram. Many companies host giveaways where you can win gift cards. Keep an eye out for their posts or stories announcing these giveaways.
Search hashtags like #freewalmart, #giveaway, #giveawayalert, #contest, and #freebie on Twitter, Facebook, and Instagram to find Walmart gift card giveaways.
Subscribe to online sweepstakes websites that list current giveaways to find opportunities to win Walmart gift cards.

Now, of course, entering giveaways isn’t a guaranteed way to get free Walmart gift card codes, but it doesn’t take a lot of time. I have personally entered giveaways through all of these methods (I used to spend probably an hour a week entering giveaways, haha!), and I have actually won quite a few things from free gift cards to cash, household goods, and more.

13. Prime Opinion

Prime Opinion is a survey website where you can earn money by sharing your opinions from home. They have many, many available surveys to complete, so there is a good chance that you can earn enough for regular free Walmart gift cards.

You need $5 in your account to redeem your points for Walmart gift codes on Prime Opinion.

Please click here to join Prime Opinion and get up to a $5 free bonus.

14. InboxDollars

InboxDollars is a rewards site where you earn points by answering online surveys, playing games, signing up for their shopping offers, and more. Then, you can use your points to get free Walmart gift cards.

You can join InboxDollars and get a free $5 sign-up bonus.

15. Walmart’s trade-in program

Walmart’s trade-in program is for you if you have electronics that you no longer need. You simply go to the Walmart trade-in website and select the type of device you have from options like phones, tablets, game consoles, and more.

Then, just answer some questions about your item’s condition and specifications.

After that, you will see an offer for your item. If you agree with the offer, then you’ll get a Walmart eGift Card.

Frequently Asked Questions

Below are answers to common questions about how to get free Walmart gift cards.

How can I get a Walmart gift card without paying?

You can get free Walmart gift cards without paying by answering surveys, trading in your old electronics, joining the Walmart rewards program, and getting cash back at places like the gas station.

How do I know if a Walmart gift card promotion is real?

To verify if a Walmart gift card promotion is legitimate, you can always check the official Walmart website, contact their customer service directly, or search on the FTC’s website to see if anything pops up.

If it’s an app that you are wanting to sign up for, you can look for their reviews, such as on Trustpilot to see what real people like you and me think about the app. There are scams out there, so you will want to stay safe and prevent fraud from happening to you. If something sounds too good to be true, then it may be best to just skip it!

Can you really get a Walmart gift card worth $100 or more for free?

Yes, there are ways to get a free $100 Walmart gift card. Many of the sites and apps above can allow you to earn enough points to get free Walmart gift card codes. For me, I actually just redeemed $150 in free digital gift card codes at once, so I know that it is a real thing. I like to save my points up so that I have a large amount in gift cards to redeem at once, and then I can put it toward a larger purchase.

Can I use Walmart gift cards at Sam’s Club?

Yes, Walmart eGift Cards can be used at Walmart.com and in Walmart stores. Sam’s Club members can also use them in-store or at Samsclub.com.

Best Ways To Get Free Walmart Gift Cards

I hope you enjoyed this article on how to get free Walmart gift cards.

There are many ways to earn free Walmart gift cards, as discussed above. From answering online surveys to uploading photos of your grocery receipts and using cash back sites, you can save money at Walmart by earning and using Walmart gift cards.

Plus, the gift cards can be used at both local Walmart stores and online, so you can get what you need and when you need it.

Walmart has low prices, but now you can save even more money.

Have you ever received a free Walmart gift card?

Recommended reading:

Source: makingsenseofcents.com

Apache is functioning normally

May 15, 2024 by Brett Tams

Everybody loves a relaxing vacation, but the chaotic nature of an airport terminal can induce anxiety in even the most zen of travelers. Loudspeaker announcements, beeping golf carts and crying children create a cacophony — wouldn’t it be nice to wait for your flight in a peaceful environment instead? Enter airport lounges.

Hanging out in an airport lounge before a trip or on a long layover can enhance your travel experience by a mile. And these havens aren’t just for those flying in fancy cabins.

What are airport lounges?

Airport lounges are quiet areas inside the terminal where passengers can relax before a flight or during a layover, eat snacks, work using the lounge’s Wi-Fi network, and sometimes even shower. Typically only paying members, passengers flying in business or first class, or cardholders of certain travel cards are allowed access. Here’s how to get in to airport lounges.

How to get in to airport lounges

There are six ways to get access to airport lounges.

1. Fly in a premium cabin

One of the most reliable ways to get airport lounge access is to fly in first or business class (typically on international routes and select transcontinental flights). This may sound like an expensive way to access a lounge, but if you purchase your flight with airline miles, your ticket still grants you entry to a lounge — either the one for your carrier or for one of its partners.

2. Reach elite status with an airline loyalty program

Frequent flyers are typically rewarded for their loyalty, and if you fly enough with one carrier or multiple carriers in the same alliance, you can enter airline lounges when flying on select routes.

For example, Executive Platinum, Platinum Pro or Platinum elite members of the American Airlines AAdvantage program can enter an Admirals Club on departure or arrival on qualifying international flights operated by American or Oneworld partners, even if they fly economy — and they can bring one guest with them.

Additionally, if you reach status with an alliance, which usually requires earning status with a specific airline, you’re able to get free airport lounge access when flying on a member airline.

3. Purchase a day pass

Another option for accessing an airport lounge is to pay for it.

United Airlines sells one-time passes that allow you to enter a United Club a single time, either before your flight or on a layover. Alaska Airlines also sells single-entry passes to passengers wishing to enter an Alaska Lounge. American Airlines sells day passes that are valid for 24 hours and allow you to enter multiple Admirals Clubs within that period.

Here’s how much airline lounge access will cost you with the following carriers:

Alaska — $60.
American — $79 or 7,900 AAdvantage miles.
United — $59.

Delta Air Lines no longer sells single-visit passes to Delta Sky Clubs, and annual membership is available to Medallion members only, meaning holding certain credit cards is the only way to access Delta lounges for general SkyMiles members (more on that later).

4. Purchase an annual membership

If you’re a frequent traveler, buying an annual lounge membership instead of repeatedly buying day passes can make sense. Of course, the value will depend on how often you fly with that specific airline.

Let’s take a look at how much an annual airline lounge membership will cost for individual, non-elite status flyers.

Alaska — $550.
American — $850 or 85,000 AAdvantage miles.
Delta — $695 or 69,500 SkyMiles.
United — $650 or 85,000 MileagePlus miles.

So, for example, if you’re going to fly round-trip with United six times in a year (12 individual flights), buying a day pass to the lounge each time would cost you $708 total ($59 x 12); an annual membership at $650 would be a better deal.

5. Present your military ID

Sometimes, being a military member can get you access to airport lounges. For example, the USO airport lounges are designed for active-duty service members and their families who are stationed around the globe.

Additionally, some airline lounges, like Admirals Clubs, offer complimentary access to U.S. military personnel in uniform traveling on American Airlines flights. United also provides complimentary access to U.S. military personnel at its United Club locations.

6. Open a credit card with airport lounge access

Many premium cards on the market offer some kind of lounge access to cardmembers. Premium co-branded airline cards typically offer access to the respective airlines’ lounges, and bank cards typically offer access to their own lounges and to lounges in the Priority Pass network.

Travel cards that give you lounge access

Let’s take a look at some of the best credit cards with lounge access.

Co-branded airline credit cards

Citi® / AAdvantage® Executive World Elite Mastercard®

By paying the $595 annual fee for the Citi® / AAdvantage® Executive World Elite Mastercard®, you get access to the Admirals Club without having to pay the annual membership (a $255 savings), plus you get all of the other cardmember perks.

Standout perks include getting the first checked bag free for up to nine passengers booked on the same reservation, Global Entry or TSA PreCheck credit of up to $100 every four years, a 25% savings on in-flight purchases, and the opportunity to earn AAdvantage miles on purchases made with the card.

Delta SkyMiles® Reserve American Express Card

The Delta SkyMiles® Reserve American Express Card offers access to Delta Sky Clubs for primary cardmembers and holders of four annual one-time guest passes (in conjunction with a same-day Delta ticket). As of Feb. 1, 2025, Delta SkyMiles® Reserve American Express Card holders will get a total of 15 Sky Club Passes per year. Terms apply.

Additionally, the card offers access to The Centurion Lounges by American Express, but access comes with restrictions. First, you must be flying that day with Delta, and second, you must have paid for the flight with an American Express card. A cardmember may bring up to two guests to The Centurion Lounges for $50 per person ($30 per child ages 2-17). Terms apply.

United Club℠ Infinite Card

The United Club℠ Infinite Card is a premium co-branded United card that comes with United Club membership for the primary cardholder and eligible guests (two adult guests, or one adult and dependent children under the age of 21).

You must be flying United or a Star Alliance partner to access United Clubs.

United Club℠ Infinite Card

NerdWallet Rating

Annual fee

$525

General travel cards

The Platinum Card® from American Express

As a cardmember, you can access the following airport lounges:

Airspace Lounge.
Delta Sky Club (when flying Delta).
Escape Lounge.
Lufthansa Business Lounge (regardless of ticket class when flying with Lufthansa, Swiss International Air Lines or Austrian Airlines).
Lufthansa Senator Lounge (when flying business class with Lufthansa, Swiss International Air Lines or Austrian Airlines).
Plaza Premium Lounge.
Priority Pass Select (enrollment required).
The Centurion Lounge.

As of Feb. 1, 2025, Sky Club access for The Platinum Card® from American Express members will be reduced to 10 visits per year, unless your yearly purchases on the card total $75,000 or more. And if you do spend that much on The Platinum Card® from American Express, you’ll receive complimentary access for up to two guests to Centurion Lounges. Otherwise, the Centurion Lounges charge a guest fee of $50 per adult and $30 per child ages 2-17. Terms apply.

Chase Sapphire Reserve®

When it comes to free airport lounge access, travelers who hold the Chase Sapphire Reserve® card have fewer options than those who hold other cards, but there are still a couple of options. With this credit card, you can enter the following lounges at no extra cost:

Chase Sapphire Lounge by The Club.
Priority Pass Select.

Although only four Chase Sapphire Airport Lounges are currently open, the network is expanding. To gain access to these lounges, you must activate your Priority Pass Select membership, which includes access to more than 1,500 airport lounges around the world. Up to two guests are allowed for free.

Capital One Venture X Rewards Credit Card

Capital One Lounge.
Plaza Premium Lounge.
Priority Pass Select lounges.

Capital One Lounge locations are at just a few U.S. airports at the moment. Primary cardholders have unlimited access and can bring up to two guests. Entry for additional guests costs $45 each.

How the cards compare

The Platinum Card® from American Express

Chase Sapphire Reserve®

on Chase’s website

Capital One Venture X Rewards Credit Card

Annual fee

Welcome offer

Earn 80,000 Membership Rewards® Points after you spend $8,000 on eligible purchases on your new Card in your first 6 months of Card Membership. Terms Apply.

Earn 75,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That’s $1,125 toward travel when you redeem through Chase Travel℠.

Earn 75,000 bonus miles when you spend $4,000 on purchases in the first 3 months from account opening, equal to $750 in travel.

Still not sure?

Which banks offer airport lounge access?

Several banks offer card options with airport lounge access. If you’re looking for a card that includes lounge access as one of the benefits, consider the following credit card issuers.

American Express

As mentioned, The Platinum Card® from American Express offers lots of lounge options for travelers seeking some peace and quiet. However, if you don’t want to pay a high annual fee, we recommend the American Express® Green Card. It comes with an up-to-$100 statement credit for LoungeBuddy purchases. Terms apply.

LoungeBuddy, a lounge booking platform, sells limited-time access to select lounges in airports around the world. Depending on the airport, you might be able to get a couple of one-times passes with your annual credit.

Capital One

Capital One offers lounge access with its premium Capital One Venture X Rewards Credit Card. Cardholders receive complimentary Priority Pass Select membership, Plaza Premium Lounge access, and unlimited access to Capital One’s own Capital One Lounges.

Chase

For general travelers, the Chase Sapphire Reserve® card is going to offer the most convenient lounge access with its Priority Pass Select membership and access to the Chase Sapphire Lounges.

United flyers will find what they need with co-branded United cards. As we’ve discussed, the United Club℠ Infinite Card offers unlimited United Club access to primary cardholders, but if you’re a casual traveler, the United℠ Explorer Card will do the job. It comes with two one-time United Club passes every card membership year, so you can use it twice or enter once with a guest.

United℠ Explorer Card

NerdWallet Rating

Annual fee

$0 intro for the first year, then $95

Citibank

Though the Citi Prestige® Card is no longer open for new applications, those who currently hold it can take advantage of Priority Pass Select perks.

American Airlines flyers will enjoy unlimited Admirals Club access with the Citi® / AAdvantage® Executive World Elite Mastercard®.

U.S. Bank

How to get airport lounge access recapped

Leave the crowded gates behind you and head to an airport lounge to wait out the layover. There are many ways to gain entry, even for passengers sitting in economy cabins — and you might be able to treat your travel companions to some peace and quiet as well.

Credit card memberships, elite status and lounge passes can transport you from a chaotic airport terminal to a serene lounge, making your next connection less stressful.

To view rates and fees of The Platinum Card® from American Express, see this page.

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

How to maximize your rewards

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

Source: nerdwallet.com

Apache is functioning normally

May 13, 2024 by Brett Tams

Do you want to learn how to get free PayPal money? Yes, there are actually many ways to get cash straight in your own PayPal account. Receiving PayPal cash for the extra income you make is great because PayPal cash can be used for almost all online shopping. If you want to increase your budget…

Do you want to learn how to get free PayPal money?

Yes, there are actually many ways to get cash straight in your own PayPal account.

Receiving PayPal cash for the extra income you make is great because PayPal cash can be used for almost all online shopping.

If you want to increase your budget without working extra hours, earning free PayPal money could be the solution. Many legitimate platforms offer tasks like surveys, watching videos, or trying new apps in exchange for cash directly deposited into your PayPal account.

I have personally used many of the apps below on a regular basis and have earned a lot of free PayPal money over the years.

Recommended reading: How To Get $20 PayPal Now

How To Get Free PayPal Money

Here are some places where you can start earning free PayPal money:

Below is more detailed information about each method for getting free PayPal cash in your PayPal account.

Here’s a screenshot of how you can redeem your points for free PayPal money on Swagbucks.

1. Swagbucks

Swagbucks is a well-known rewards website that gives you PayPal cash as a reward. It has been downloaded over 5 million times and has paid out over $500 million in rewards.

On Swagbucks, you can earn points called “SB” by answering surveys, getting cash back when you shop through their platform, and watching short videos.

With the points you earn on Swagbucks, you can put money directly into your PayPal account. You can redeem your points starting at $5 (this is 500 points) all the way up to $250 (25,000 points).

I began using Swagbucks about 10 years ago, and since then, I’ve earned over 110 free gift cards for myself, including a lot of PayPal cash. I don’t spend a lot of time on it – just every now and then.

2. User Interviews

User Interviews is a company that pays for online studies. These are more in depth than paid online surveys, and you can earn around $50 to $100 per hour or more for sharing your opinions and feedback.

They launch over 2,000 studies monthly, and they have paid over 85,000 people in the last year.

These are typically completed over the phone or in a video call where an interviewer is asking you questions.

The average study pays over $60. When you participate in User Interviews, you can receive payments in various forms such as cash, a check, PayPal, Amazon gift cards, Visa gift cards, and more.

You can click here to sign up for User Interviews.

Recommended reading: User Interviews Review – Make $50 To $100 An Hour Sharing Your Opinion

3. KashKick

KashKick is a rewards platform where you can get rewards for doing things like answering questions and playing games online. You can then turn these rewards into free PayPal money.

They have games like Monopoly GO, Yahtzee, Bingo Blitz, Scrabble Go, and others where you can earn $100 or more per game.

You need just $10 to cash out.

4. Ibotta

Ibotta is an app that gives you money back when you buy groceries. Just upload your receipts after you shop to earn cash that you can use as free PayPal cash.

Here’s how Ibotta works:

Browse offers – Check the Ibotta app to see what cash back offers are available before you go shopping (like for granola bars or toothpaste).
Shop in store – Go to the store and make your purchases.
Upload your receipt – Take a picture of your grocery receipt using the Ibotta app on your phone to earn cash back.

Some examples of the cash back you might be able to earn include: $0.50 cash back for buying body wash, $3.00 cash back for buying laundry detergent, and $1.00 cash back for buying cereal.

You need $20.00 to cash out to PayPal in the Ibotta app.

You can join Ibotta here.

5. Upside

Upside is an app that gives you cash back when you buy gas at certain gas stations. You can earn about $150 per year in cash back. Not all gas stations nearby are part of the app, but many are, so you’ll likely find some that qualify near you.

When you use the app for the first time, you can get a higher cash back amount to help you get familiar with it. In my first experience with the app, I received $0.74 back per gallon. I bought 12.62 gallons of gas and saved $9.33 just by using the app for the first time. It’s super easy and was a no-brainer to use.

Getting cash back on your gas is nice, especially with how expensive gas is these days!

To complete a PayPal cash-out on Upside, you need just $1.00 in your account.

You can sign up for Upside here.

6. Sell your old phones on Decluttr

Decluttr is a website where you can sell your old phones, CDs, DVDs, books, video game consoles, and more. It’s one of the most popular places to buy and sell electronics and tech items because they pay well and quickly.

Here’s how Decluttr works:

Open the Decluttr app and get a free valuation for the items you want to sell. It takes just a few moments to see what your item is worth.
Tell them the make, model, and condition of what you are selling. If you’re selling DVDs, CDs, or games, then you just enter your barcode or take a picture of the barcode with the Decluttr cell phone app.
If you’re satisfied with the offer for your item from Decluttr, just find a box that will keep it safe during shipping. Pack the item in the box, and Decluttr will provide a free shipping label. Simply print out the label and tape it to your box to send it off.
Finally, once Decluttr receives and checks your item, you’ll get paid the next day through direct deposit to your bank account or PayPal.

You can check out Decluttr here.

7. American Consumer Opinion

American Consumer Opinion is a site where you can take online surveys and earn points.

Their surveys pay around $1 to $5 each and once you earn enough points, you can redeem them for free PayPal money.

You need at least 1,000 points before you can withdraw and get free PayPal cash.

Click here to join American Consumer Opinion.

8. Survey Junkie

Survey Junkie is a paid online survey site where you can earn free PayPal cash for answering paid online surveys.

You can earn around $40 in free PayPal cash each month by completing around three short surveys each day.

You can redeem your points for free PayPal money starting at just $5 or 500 points.

Please click here to sign up for Survey Junkie.

9. Branded Surveys

Branded Surveys rewards you with points for answering survey questions. Surveys typically take 5 to 15 minutes and pay between $0.50 and $5.00 each. You can redeem these points for free PayPal cash.

You might have noticed there are several survey sites listed here. Companies pay you to answer questions because they want to improve their products and advertising. By understanding more about you, they can make better decisions. The best part is that these surveys are simple to answer, and you can join as many survey sites as you like.

You can click here to join Branded Surveys for free.

10. PrizeRebel

PrizeRebel is a website where you earn points by taking surveys, watching videos, and referring new members. You can redeem these points for free PayPal cash.

Just a few days ago I logged in to PrizeRebel, and I realized that I had enough points for around $150 in free PayPal cash. I redeemed them all at once, and now I have some nice extra spending money!

On PrizeRebel, you can get free $5 PayPal cash for 500 points. You can also choose any custom amount to redeem as well in PayPal cash.

Click here to sign up for PrizeRebel.

11. PayPal Honey

PayPal Honey is a free browser extension that automatically finds and applies coupon codes for you when you shop online. By using it, you earn points that you can redeem for extra money.

You can redeem your points for cash, gift cards, or free PayPal shopping credits.

12. Rakuten

Rakuten lets you earn cash back on your everyday purchases from over 3,500 stores like Target, Walmart, Lululemon, Macy’s, Lowe’s, and Best Buy. When you make a purchase, you get a percentage of your spending back in cash.

When you shop through Rakuten, you get cash back as a percentage of what you spend. For example, if a store offers 5% cash back and you spend $200 there, you’d earn $10.00 in rewards in your Rakuten account.

You can receive your earnings via a check or PayPal once every quarter.

I have received over $1,000 in PayPal cash from Rakuten over the years. It’s a no-brainer if you want to easily save money when shopping online.

You can sign up for a free account on Rakuten here.

13. Find free PayPal money giveaways

If you’re looking to earn free PayPal money, entering sweepstakes and giveaways can be a fun way to try your luck. Companies host giveaways to attract new followers and keep existing followers and customers excited about their brand.

You can find free PayPal money giveaways by searching and/or following related hashtags on social media, such as #freepaypalmoney, #giveaway, #giveawayalert, and #freebie.

You can also follow online sweepstakes websites that list current giveaways.

Entering giveaways doesn’t guarantee free PayPal cash since they’re contests, but it’s quick and easy. I used to spend about an hour a week entering giveaways and have won gift cards and cash prizes.

14. Honeygain

The Honeygain app pays you up to $30 a month to share your internet connection with companies that use it as a tower.

You’re paid based on the amount of traffic that goes through your connection, earning $1 for every 10 GB of traffic.

Please click here to sign up for the Honeygain app.

Here’s a screenshot of how you can redeem your points for free PayPal money on Prime Opinion.

15. Prime Opinion

If you want to learn how to get free money on PayPal, then Prime Opinion makes that possible with easy minimum threshold payout amounts to reach. You can get free PayPal cash starting at just 500 points, which is $5.

Prime Opinion is a survey website where you can earn money by sharing your opinions from home. They have lots of surveys available, and when I logged in recently, I had almost 50 surveys that I could take right away.

Please click here to join Prime Opinion and get up to a $5 free bonus.

16. Five Surveys

Five Surveys is a market research company that pays you to complete surveys. You just need to complete five surveys and then you can earn $5.

I signed up for Five Surveys myself to test it out for you. One thing I really like about Five Surveys is the number of available surveys. On the first day, there were 42 surveys I could start with, and more are being added all the time.

To withdraw from your Five Surveys account, just choose your preferred method. Options include PayPal cash, bank transfer, Venmo, and gift cards.

Please click here to sign up for Five Surveys.

17. Dosh

Dosh is a quick and simple app that automatically gives you cash back when you shop at certain stores like Costco, Sam’s Club, AT&T, American Eagle, and over 10,000 other companies.

Just link your debit or credit card (or even your Venmo or bank account) to the app, and everything else is handled for you. When you shop and pay with your linked card, you’ll automatically receive cash back into your Dosh account, which you can then transfer to your bank or PayPal account.

Once you accumulate $15 in your Dosh account (this is the minimum payout threshold), you can transfer it to your bank, PayPal, or Venmo. Alternatively, you can choose to donate your cash back to charity.

Recommended reading: 14 Best Apps To Scan Receipts for Money

Frequently Asked Questions

Below are answers to common questions about how to get free PayPal money.

How do I get money from PayPal for free?

You can earn free money on PayPal by completing online surveys, watching videos, selling your old stuff, and getting cash back when shopping online.

How do gamers receive PayPal funds by playing online games?

Apps like KashKick will pay you in points to play their online games. The points that you earn can then be redeemed for free PayPal funds straight in your personal PayPal account. YouTubers can also get paid to play online games and stream what they are doing.

What methods are available to secure a quick $10 on PayPal?

You can quickly earn $10 on PayPal by completing tasks such as taking surveys, reading emails, or shopping online through websites like Rakuten. These sites allow you to cash out once you reach a minimum amount. You can also become a freelancer on Fiverr and get paid in PayPal cash for hard or simple tasks. This wouldn’t be free money because you would have to work for it, but it is another option.

How do I check my PayPal balance?

To check your PayPal balance, you will have to log in to your PayPal account. Right after you log in, your PayPal balance will be listed for you to easily see.

Can you get PayPal money right away?

Some platforms may pay instant payouts to your PayPal account, while others may have a processing time or a minimum threshold before you can cash out. Always check the payout terms of the website or app you’re using to understand how and when you can access your earnings. Sometimes, it may take a couple of days before it lands in your personal PayPal account.

If you really need money right away, then another option may be to ask someone that you know for help or to ask for donations.

Best Ways To Get Free PayPal Money

I hope you enjoyed this article on how to get free money on PayPal.

Getting free PayPal money is great because it is just like extra cash. You can pay for your online purchases with it at almost all stores, and PayPal also has the PayPal Debit Card (so, this is kind of like getting a free PayPal gift card), so that you can buy things in-store too. Or you can also transfer it to your bank account and withdraw it just like cash.

Now, there are PayPal cash scams out there, so I do recommend that you be careful. If you are ever suspicious, do as much research as you can.

I have personally used many of the sites above and have earned well over $1,000 in free PayPal money over the years for doing things just in my spare time.

Have you ever earned free PayPal money?

Recommended reading:

Source: makingsenseofcents.com

Apache is functioning normally

May 13, 2024 by Brett Tams

Online and mobile banking are now woven into many people’s daily lives. With just a few clicks or taps, you can check your balances, pay bills, and make other financial transactions from virtually anywhere, at any time.

Banks are not only convenient, they also implement numerous security measures to help safeguard your accounts. With hackers finding increasingly sophisticated ways to try to access your information, however, it’s also important to be aware of steps you can take on your own to keep your financial and personal details out of the hands of cyber thieves and hackers. Here’s what you need to know.

Tips on Securing Your Bank Account from Hackers

These days cyber thieves are getting increasingly savvy, even setting up fake bank websites and banking apps designed to steal your personal information — and, in turn, the contents of your checking or savings account.

There are a few simple things you can do, however, to help secure your accounts. What follows are six easy strategies that can help you stay ahead of scammers and hackers and protect your hard-earned cash.
💡 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).

Choose Trustworthy Financial Apps

Whether it’s your bank’s mobile app or any other type of financial app (like a budgeting app), be sure to only download verified apps from a trusted platform, like the App Store for iPhone or iOS users or the Google Play Store for Android users. Fraudulent activity can often occur through fake apps or those downloaded from unofficial sources.

Before downloading a third-party money management app, it’s also a good idea to look up online reviews of the providers from reliable sources, research the app’s security policies, and look for any past data breaches.

Recommended: 50/30/20 Budget Rule: What It Is and Tips On Using It

Choose Strong and Unique Passwords

It’s wise to choose a unique password for every bank account, and avoid repeating any ones you use for other online accounts, even non-financial ones. That way, if a fraudster is able to uncover your Facebook password, they won’t be able to access your savings account.

To create a secure password, try to combine uppercase and lowercase letters, numbers, and special characters. You generally want to avoid using easily guessable information such as birthdates, kids’ names, or sequential numbers. To keep the login information for all of your accounts organized, you might want to use a physical or online password manager.

Use Multi-Factor ID

Whenever possible, it’s a good idea to enable two- or multi-factor authentication. This adds another layer of security by requiring one or more forms of verification in addition to a password, such as a pin sent to your mobile device via email or SMS. If hackers are able to access your bank account login credentials, it would be difficult for them to log in without your second verification.

You may also want to take advantage of biometric authentication methods, such as fingerprint or facial recognition, if offered by your bank. Biometrics protect your account by using unique physical characteristics to verify your identity, making it harder for hackers to gain unauthorized access.

Recommended: Avoiding Mobile Deposit Scams, Fakes, and Hacks

Set Up Account Alerts

You can typically set up banking alerts via email, text, or your bank’s app to monitor unusual activity, such as large withdrawals, a profile/password update, new linked external account, or an unusual login attempt. This allows you to identify suspicious activity quickly and report any unusual or unauthorized transactions to your bank right away. You can then work with the bank to swiftly resolve the issue.
💡 Quick Tip: Help your money earn more money! Opening a bank account online often gets you higher-than-average rates.

Watch Out for Phishing Attempts

Phishing scams are ever more prevalent and sophisticated. These scams trick you into providing your personal and banking information that can then be used for fraudulent activity.

For example, you could receive an email, supposedly from your bank, saying there’s been a problem with your account and sharing a link where you are asked to login and update your information. The website you are led to could look just like your bank’s website. If you input your details, hackers will have access to your login information. A few ways to avoid online bank scams:

• If you get a communication that says it’s from your bank and asks you to click a link, don’t. Log into your banking website or app, and check messages there to see what’s going on. Or call your bank to ask if the message is legitimate.

• Hover over the email sender’s address. You may be surprised to see the message is coming from a different identity than the one it’s pretending to be. If that’s the case, don’t click on anything; mark the email as spam.

• Never download attachments from unknown sources, as they may contain malware designed to steal your login credentials.

Recommended: Are Online Savings Accounts Safe?

Be Wary When Using Public Wifi

The public wifi at your favorite coffee shop or local library can help you stay connected when you’re out and about, but you can’t count on it to be entirely secure. While it’s generally fine to use public wifi for browsing the web, it’s best to avoid using it for any activities that require login information, such as signing in to your bank account. The open connection could potentially give cyber thieves a chance to grab your username and password as they move between you and your bank’s website.

To make public wifi more secure, consider putting a virtual private network (VPN) app on your device. A VPN encrypts your data as it passes to and from your device and acts as a protective pathway so that your data is not visible as it passes through a network.

Recommended: What Do You Need to Open a Bank Account?

The Takeaway

Online banking is generally safe and convenient, but it’s also important to take precautions to minimize the risk of getting hacked or scammed. Luckily, there are steps you can take to reduce the risk of your bank account being compromised. These include using strong passwords and multi-factor authentication, only downloading apps from reputable platforms, never clicking on links in communications that are (supposedly) from your bank, and never logging into your bank account using public wifi.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

Can hackers steal money from a bank account?

Hackers may be able to steal money from a bank account if they gain access to your account credentials. They might be able to do this by using deceptive emails and websites to trick you into revealing your bank details or exploiting vulnerabilities in a bank’s security systems to access sensitive data.

Fortunately, banks implement numerous security measures to safeguard your accounts. You can also help keep your accounts safe by using strong passwords, enabling multi-factor identification, and being wise to phishing scams.

Who pays if your bank account is hacked?

If your bank account is hacked and unauthorized transactions occur, the bank will likely reimburse the stolen funds, provided you report the incident quickly.

As soon as you see something suspicious, you’ll want to call the number on the back of your bank card and go through the fraud department’s recovery process.

Am I protected if my bank account is hacked?

Yes, you are usually protected if your bank account is hacked, as long as you let the bank know about the fraudulent transaction in a timely manner.

Generally, if you report an unauthorized bank transaction within 48 hours, your liability will be limited to no more than $50. However, if you wait months to report an incident, you might have difficulty recovering any of your lost funds.

Can someone hack your bank account with a routing number and an account number?

Having access to your routing number and account number can potentially lead to some negative outcomes, such as fraudulent payments, the creation of checks for your account, and possibly online shopping with retailers that only require bank account information.

However, a routing number and account number is typically not sufficient on its own for hackers to gain direct access to your bank account. Most banks employ multiple layers of security measures, including authentication protocols and monitoring systems, to prevent unauthorized access to customer accounts.

Photo credit: iStock/insjoy

Our account fee policy is subject to change at any time.
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.

SOBK-Q224-1855753-V1

Source: sofi.com

Apache is functioning normally

May 13, 2024 by Brett Tams

The AAA credit card portfolio requires a little history lesson.

After Bread Financial formally partnered with AAA in 2022, the companies launched two co-branded credit cards: the AAA Travel Advantage Visa Signature Credit Card and the AAA Daily Advantage Visa Signature Credit Card. Both are issued by Bread Financial, formerly Comenity Bank, and offer solid rewards rates, although earnings are capped.

A third co-branded card, the AAA Cashback credit card, is issued by U.S. Bank.

The Travel Advantage and Daily Advantage credit cards have similar features, but they differ from their Cashback cousin when it comes to eligibility requirements, rewards and sign-up bonus.

Here’s what you need to know about the three AAA credit cards to help you decide the best fit for your lifestyle.

1. There are 3 AAA credit cards

Before applying for one of the AAA credit cards, make sure you’re filling out an application for the card you really want. The three AAA credit cards have different rewards structures:

AAA Daily Advantage credit card.
AAA Travel Advantage credit card.
AAA Cashback credit card.

AAA Daily Advantage credit card

AAA Daily Advantage is billed as a card for everyday spending. And for many cardholders, the rewards categories do represent common spending categories. The Daily Advantage card earns:

5% cash back at grocery stores.
3% cash back on gas and EV charging, wholesale clubs, streaming services, pharmacy and AAA purchases.
1% cash back on all other purchases.

There’s a $500 annual cash-back cap on rewards earned at grocery stores, wholesale clubs and gas stations combined. After hitting the cap, purchases in those categories earn 1% back for the rest of the year. A $500 rewards limit may seem high, but some families will easily exceed it. If you spend $10,000 annually at grocery stores alone, you’d hit the $500 cash-back cap.

AAA Travel Advantage credit card

As the name suggests, AAA Travel Advantage is a travel-centric card, and its rewards categories bear that out. The Travel Advantage card earns:

5% cash back on gas and EV charging.
3% cash back on travel, restaurants, grocery stores and AAA purchases.
1% cash back on all other purchases.

Rewards earned on gas and EV charging are capped at $350 per calendar year. The rewards rate drops to 1% once you’ve hit the limit. Given the 5% rate, cardholders would need to spend $7,000 a year (or about $583.30 per month) on gas and EV charging to reach the $350 rewards cap.

AAA Cashback credit card

The rewards rates are less impressive on the AAA Cashback card compared to the other two cards; however, there’s no cap on rewards. This card earns:

3% cash back at grocery stores, gas stations and dining.
2% cash back on AAA memberships, travel and insurance.
1% on everything else.

🤓Nerdy Tip

Bread Financial doesn’t allow consumers to have both the Daily Advantage and Travel Advantage cards.

2. You may need AAA membership to get one of the cards

AAA membership is required to get the AAA Cashback credit card. Pricing depends on where you live, but in general, a membership can cost from $38-$164 a year for one person.

However, you don’t have to be a member of AAA to apply for the Daily Advantage or the Travel Advantage credit cards.

3. Reward redemption options vary slightly by card

If you have the AAA Cashback Visa, rewards may be redeemed for the following:

AAA gift cards.
Merchandise.
Statement credit ($25 minimum to redeem).
Direct deposit ($25 minimum to redeem).
Gift cards.

The redemption options for the Daily Advantage and Travel Advantage cards include everything listed above plus Apple products and AAA merchandise, services and travel. Cardholders must have at least $5 to redeem if they opt for cash back or a statement credit.

For all three AAA cards, rewards expire after five years.

4. Sign-up bonuses vary by card, too

Currently, the Travel Advantage and Daily Advantage credit cards have the same sign-up bonus: a $100 statement credit for new cardholders who spend $1,000 on their AAA Visa Signature card in the first 90 days of account opening.

As of this writing, the welcome offer for the AAA Cashback card is potentially more valuable, depending on your spending. Instead of the standard 2% rate, new AAA Cashback cardholders will earn 4% on AAA memberships, travel and insurance for the first six months, up to $6,000. Were you to hit the $6,000 spending cap, you’d get $240 cash back.

5. Fees are minimal

For the Daily Advantage and Travel Advantage cards, the combination of a $0 annual fee and a fixed 5% rewards category is especially notable. Other credit cards that feature a 5% rate often come with an annual fee or require you to actively track and opt in to bonus categories that rotate every quarter.

Source: nerdwallet.com

Apache is functioning normally

May 12, 2024 by Brett Tams

Margin level is a risk-management indicator that helps you understand what influence the currently opened positions have on your account.

The margin level in your options trading account is a formula that tells you how much of your funds are available to open new trades. The higher your margin level percentage, the more funds are available to trade. If the margin level drops too low, you could receive a margin call.

What Is Margin Level?

Your margin level percentage is a measure of the relationship between the equity in your trading or brokerage account and how much margin is in use. The margin level calculation is expressed as a percentage: (equity / margin) x 100.

It’s helpful to think of margin level as a reading of your trading account’s health. A margin level percentage of 0% means you have no open positions. A margin level of 100% means that the amount of a portfolio’s equity and used margin are equal. Equity is the cash available to trade, plus any unrealized profits and losses on open positions. Many brokers will not allow investors to make new opening trades when the margin level on their options trading account is 100% or less.

When margin level falls below 100%, the broker might issue a margin call. Unless the market moves back in your favor, you must deposit more funds (or assets) into your account when you are hit with a margin call. You can also satisfy a margin call by exiting your current holdings.

The margin level percentage depends on various factors. The volume of your positions and their potential effect on the market can affect your margin level calculation; as can the amount of leverage you use.

💡 Quick Tip: One of the advantages of using a margin account, if you qualify, is that a margin loan gives you the ability to buy more securities. Be sure to understand the terms of the margin account, though, as buying on margin includes the risk of bigger losses.

What Does Margin Level Really Do?

To understand what margin level means, it’s important first to grasp the concept of margin in options trading.

Margin is the amount of cash or securities a trader must deposit in their account before being able to write (or sell) options. You can think of it as a good faith deposit or a form of collateral. The Federal Reserve Board’s Reg T sets margin requirements.

Margin works differently in options and futures accounts than in stock trading accounts. Margin debt in stock trading refers to the amount of borrowed funds used to buy new shares. This is also referred to as using leverage.

The margin level calculation tells you how much of your funds are available to use for new opening trades. The higher your margin level, the more “free margin” you have. Free margin is the amount of money available to place new trades. Margin is composed of “used” and “free” amounts. Used margin is the aggregate of all the required margin on your existing positions. Free margin, on the other hand, is the difference between equity and used margin.

Margin level also can inform you of how much wiggle room you have in your options trading account, or other types of accounts. A very high margin level percentage means you have a large amount of equity relative to the total amount of required margin. A low margin level calculation tells you that your account might not be far from getting a margin call.

Increase your buying power with a margin loan from SoFi.

Borrow against your current investments at just 11%* and start margin trading.

Calculating Margin Level

Calculating margin level is straightforward: Divide the equity by the amount of used margin; then multiple that quotient by 100:

Margin level = (equity / margin) x 100

If you don’t have any open positions, then your margin level calculation will be zero. This can be confusing because usually, a low margin level means your account might be at risk for a margin call. A 0% margin level is the safest and lowest-risk margin level you can have, because in that scenario, you’d have no open positions.

Margin level = (equity / margin) x 100

Margin Level Example

Suppose you deposit $10,000 into your account. Before you make any trades, your margin level is 0%, as you don’t have any used margin (the divisor in the earlier-mentioned equation is zero). Your first buy is a call option on shares of XYZ stock, and you pay a $5,000 premium. Your margin level calculation is now 200% ($10,000 / $5,000 = 200%).

Now let’s say you open another $5,000 options position. Your margin level declines to 100% ($10,000 / $10,000 = 100%). We will assume that is the broker’s minimum margin level before a margin call is issued. Later, we’ll detail what happens if your margin level falls below the critical 100% threshold.

💡 Quick Tip: How to manage potential risk factors in a self-directed investment account? Doing your research and employing strategies like dollar-cost averaging and diversification may help mitigate financial risk when trading stocks.

Why Understanding Margin Level Is Important

The margin level percentage is important, as brokers use this figure to determine whether you can open new positions. Many brokerage firms set a minimum margin percentage at 100%. So if your margin percentage drops below that threshold, then you will encounter a margin call — or even a forced liquidation — on one or more of your open trades. If you want to take on new positions, then you’d be forced to sell an existing holding or add more funds to your account.

Margin Level Below 100%

Taking our earlier example a step further, If the market moves against you, and your option values fall to $9,000 on the market, your margin level calculation would decline to below the minimum margin level ($9,000 / $10,000 = 90%). The broker then could issue a margin call.

You have two choices: either sell an existing position or deposit more assets into the account. If you do not act promptly, the broker can sell one of your positions automatically.

Your margin level could fall below 100% based on small moves in the assets you own. Broad market conditions, like volatility, also could affect your account negatively. In an extreme example, Silver Thursday rocked the silver trading market and caused long futures and options positions on silver to suffer severe losses. In turn, this triggered an onslaught of margin calls in the precious metals markets. The moral of the story: It’s important to manage risks carefully when using leverage.

If you’re interested in trading on margin, or just want to know more about it, you’ll need to understand the difference between marginable and non-marginable securities.

The Takeaway

As discussed, the margin level in your options trading account is a formula that tells you how much of your funds are available to open new trades. Trading on margin is an advanced strategy that comes with greater risk than trading other securities, like stocks or ETFs, for example. But while the risks are greater, so are the potential rewards (and losses).

For experienced traders, using margin can enhance buying power. But using margin and leverage introduces additional risk into the mix, which investors should be aware of.

If you’re an experienced trader and have the risk tolerance to try out trading on margin, consider enabling a SoFi margin account. With a SoFi margin account, experienced investors can take advantage of more investment opportunities, and potentially increase returns. That said, margin trading is a high-risk endeavor, and using margin loans can amplify losses as well as gains.

For a limited time, opening and funding an Active Invest account gives you the opportunity to get up to $1,000 in the stock of your choice.

Photo credit: iStock/fizkes

SoFi Invest®
INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE
SoFi Invest encompasses two distinct companies, with various products and services offered to investors as described below:
Individual customer accounts may be subject to the terms applicable to one or more of these platforms.

1) Automated Investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser (“SoFi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC.

2) Active Investing and brokerage services are provided by SoFi Securities LLC, Member FINRA (www.finra.org)/SIPC(www.sipc.org). Clearing and custody of all securities are provided by APEX Clearing Corporation.

For additional disclosures related to the SoFi Invest platforms described above please visit SoFi.com/legal.

Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform.

*Borrow at 10%. Utilizing a margin loan is generally considered more appropriate for experienced investors as there are additional costs and risks associated. It is possible to lose more than your initial investment when using margin. Please see SoFi.com/wealth/assets/documents/brokerage-margin-disclosure-statement.pdf for detailed disclosure information.
Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Before an investor begins trading options they should familiarize themselves with the Characteristics and Risks of Standardized Options . Tax considerations with options transactions are unique, investors should consult with their tax advisor to understand the impact to their taxes.
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.

Claw Promotion: Customer must fund their Active Invest account with at least $25 within 30 days of opening the account. Probability of customer receiving $1,000 is 0.028%. See full terms and conditions.

SOIN-Q224-1871555-V1

Source: sofi.com