APY = Annual Percentage Yield
After the 2008 financial crisis many of us lost faith in traditional banks. High fees, high penalties, minuscule interest rates on our savings. Enter the internet. The rise of online banking has changed the game. Capitalizing where traditional banks have let us down. Without the overhead of brick and mortar locations, online banks can offer better rates and lower fees. Listed are some banks, online banks, and prepaid accounts that all have interest rates of around 5%. Bank of America's Platinum Honors rewards - their highest tier program - only offers 0.06%. Wells Fargo only offers 0.05%, and Chase will only give you 0.01%. Each bank has it's on stipulations, but with %5 interest versus 0.01% is significant, especially for passive money.
Northpointe Bank's Ultimate Checking Account is a really cool program. As long as you use your debit card at least 15 time a month between online or in-store, enroll in their eStatements program, and set up for direct deposit, you'll be set for 5% APY on balances up to $10,000.00. Balances larger than $10,000.00 will earn a simple interest rate of 0.10% with a corresponding APY of 2.54%-5.00% APY. What's also cool about Northpointe is that every month they will reimburse up to $10 in ATM fees. Learn More here.
Netspend is the leader in prepaid cards. While you have to go in-store to load cash, Netspend all offers direct deposit as well. And the offer 5% interest on balances up to $1,000.00. There's no minimum deposit to start or minimum account balance required, and when the balance exceeds $1,000.00 interest will be 0.49% with an APY of 0.50%, and the interest paid on the portion of the Average Daily Balance which is $1,000.00 or less will be 4.91%. The APY for this tier will range from 5.00% to 0.54%, depending on the balance your the account. You can learn more here.
Mango's slogan is "it's prepaid made perfect". With a net direct deposit of at least $800.00 monthly and a minimum end of the month balance of $1.00 is all that is needed to qualify for 6.00% APR. On balances above $5,000, they offer 0.10%. They also offer a fall-backAPR of 2.00% for if your account does not meet the minimum $800 dollar net direct deposit threshold. Learn more about Mango here.
Powered by Paypal. This card is backed by Netspend and works under all the same parameters, including the 5% APY. What makes this card special however is how seamlessly it syncs with you Paypal account. You can instantly transfer funds from your paypal account, stash them in your savings and start earning some high yield interest. Learn more here.
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What is Robinhood?
The Robinhood app debuted in 2013 as a first-of-its-kind revolutionizing free investment platform. Much like the 700-year-old story of the hero to the people, Robin Hood, FinTech entrepreneurs Vladimir Tenev and Baiju Bhatt created the platform in order to make stock trading easily accessible to the general public and not just the wealthy.
The National Financial Educators Council (NFEC) surveyed young adults in 2017 and asked them what high school level course would benefit their lives the most.
The majority responded that money management was the course that would be most beneficial.
With personal debt is at its highest record and COVID-19 threatening to have the hardest economic effects on youth, understanding money and finances is an important life lesson that should be taught to children at a young age.
The following is a list of the best financial literacy lessons and tips to teach children throughout different life stages.
I thought I had a pretty good handle on my finances out of school. I worked several jobs while attending university and had little to no problem managing my income. However, once I graduated, I realized how much more complicated personal accounting could really be.
There were so many variables I needed to keep track of. Biweekly bills, monthly charges, and general necessities amounted to a heap of confusing numbers that were often impossible to decipher. The funniest part was that I was actually trying to do this by hand (I don't know what I was trying to prove to myself, either).
After messing up for the 17th time, I decided to give Microsoft Excel a shot. I used Excel a bit in school and I knew all the big-wig finance people used it, so what could I possibly have to lose? The answer is about six hours of my precious time. Excel isn't much of an improvement over handwriting and it's still dependent on the user to manually input all of the information. It's like doing everything by hand with the slightest help, meaning that it still required a tremendous amount of time and concentration. Well that was all for nothing, I guess.
It's sort of funny. I was certain that I could manage my personal finances with ease, when it's practically a full-time job. I was already stressed out enough with my first job and I knew I didn't have enough time to give my finances the attention it deserved.
That's why I decided to try out a budgeting app. My best friend told me that he uses an app called Truebill to manage his finances. "What does it even mean to manage your finances?" I asked him. He told me that Truebill was the personal financial assistant I wished I could have. It could aggregate all of my account information into one place and give me specific insights and actions.
I loved the idea of having full control over my finances, especially during a time of financial uncertainty, and I realized that Truebill would be the easiest way to accomplish this. The user interface is incredibly simple and intuitive, so it doesn't even feel like a finance app! Truebill offers a multitude of features, with their most popular being the ability to cancel subscriptions with the press of a button.
Okay, I had no idea how many subscriptions I was still subscribed to. In fact, I wasn't even using a quarter of the subscription services I was signed up for. Subscription boxes, streaming services, my old gym, and even an old subscription to my favorite magazine--it was all there and I was livid. How could I let myself waste all of this money and how did I never catch this? Thank goodness for Truebill.
Truebill also offers bill negotiations. There is a 40% fee based on how much you save and Truebill even claims that there is an 85% chance that they'll be able to lower your bill once a negotiation is requested. Why wouldn't I take them up on this? There was zero risk and I would only have to pay once my bill was lowered (which means that I would be saving money regardless).
More standard features of Truebill include the ability to generate a credit report on-demand and even request a pay advance. I only used the pay advance feature once when I wanted to buy a gift for my mom, but didn't have enough cash in hand and Truebill automatically reimbursed itself when I got my next paycheck.
The credit report is another fantastic feature and practically taught me what good credit meant. Truebill's credit report basically shows you which financial decisions have the most significant impact on your credit score and ways that you can improve your credit month-over-month. I've never had such control over my credit and it feels good.
I'll be the first to admit that I was extremely naive coming out of school. I figured that as long as I was attentive, I could manage my finances with ease. We manage money to some extent throughout our entire lives, but once you're thrown out on your own, it's a completely different story. With Truebill, I've finally been able to take control over my finances and stay on top of all of my responsibilities.