The importance of saving for a rainy day has been instilled in us since our childhood with the story of “The Ant and the Grasshopper.” In a nutshell, the overzealous grasshopper has to ultimately seek help from the wise ant who “saved” for the rainy day since the grasshopper was callous enough to sing and while away the entire summer. Even as kids, we dreaded ending up as the now-poor grasshopper quivering at the smug ant’s doorstep.
As adults, one of the frequent nightmares that visit us is where we run out of savings, and blame our past-selves for throwing caution to the wind. Well, banks understand the fundamental need of people to save and thereby presents us with a savings account. Almost every bank offers savings accounts to its customer; it is an interest-bearing deposit account that offers modest interest rates to its account holders. Also, a savings account is a great way of earning interests on your unused funds; instead of letting the money lying around the house, and be tempted to spend it recklessly, you can earn interests on the money if you choose one of the best interest rates savings accounts.
It would definitely be an advantage if you open a savings account with one of the top banks that offer high interest-yielding saving accounts. Here are some of the best savings accounts that yield high-interest rates.
Marcus by Goldman Sachs
This online bank is the online offshoot of the Wall Street giant, Goldman Sachs. This bank offers the best interest rates on its savings accounts; you are entitled to 1.70% APY on the deposits you make. This is the best option to open a savings account in, especially if you have extra cash and wish to earn some extra money without breaking a sweat. This online bank makes its savings account more appealing since it doesn’t demand that you keep a minimum balance and no transaction fees are levied. Moreover, another impressive factor that should motivate you to choose this bank is because it offers the best interest rates on its savings accounts, and goes on to offer beneficial personal loans options.
Synchrony Bank
Unlike certain banks that have restrictions when it comes to ATM access, and mostly there is no ATM access granted in several cases, Synchrony Banks has carved a niche for itself as one of the banks that offer top interest savings account and which grants ATM access as well. It pays an attractive 1.75% APY with no minimum balance requirement and no monthly fee. Usually, several internet-operated banks allow you to transfer funds electronically only. However, Synchrony Bank allows you to access your funds via the ATM, and this makes transactions convenient. Synchrony Bank offers the best interest rates for its savings accounts and your money will be safe since it is a well-capitalized business.
Barclays Bank
A majority of people are familiar with Barclays since it has been around for 325 years! It is an old British bank that has been catering to people for ages. It offers a decent 1.65% APY which brings it into the league of banks that offer the best interest rates on its savings account. Also, you wouldn’t have to fret about maintaining a minimum balance in the savings account since Barclays doesn’t levy any minimum balance requirement on its account holders. People often think how a British bank is still thriving in the country, and one of the major reasons is that it offers its saving products with highly competitive rates.
American Express National Bank
This bank is hailed as one of the customer-oriented banks that offers the best interest rates on its savings account. It offers a personal savings account to its customer and offers 1.65% APY which is quite commendable in comparison to other banks. You wouldn’t have to pay any monthly fees or meet minimum balance requirements, and this is what makes it one of the most affordable savings account. Moreover, the FDIC insures your deposits up to $250,000, and you are required to transfer the fund into the account within the first 60 days of applying for the account.
Ally
Here’s a bank that actually has no branches. However, it has proven its credibility by catering to the customers’ requirements; one of them is that it offers relatively high-interest rates making it one of the noteworthy banks that offers the best interest rates on savings accounts; it offers 1.60%APY to its customers, and it makes transferring funds easier since all transactions are conducted online, and you can have immediate access to your funds via checks, ATMs, and debit cards.
Opening a savings account is quite beneficial since it helps you develop a savings habit and helps you earn extra money while doing so.
A cash card helps you carry digital money for making payments at stores or online. It is a secure and convenient alternative to carrying cash and does not necessarily need a bank account, with the exception of debit cards. A tool for electronic payments, cash cards typically use the funds you already have to make payments, unlike credit cards. Here is a look at free cash cards you can get and use for day-to-day transactions:
Types of cash cards
Cash cards can be linked to a bank account or are registered directly on payment networks with the option to top up your balance. Here are the common types of cash cards you can find:
Prepaid debit cards: Prepaid cards are one of the most popular types of cards. The card here stores a digital balance that can be accessed to make payments at all popular merchants. It works in a way similar to recharging your phone balance every month, but instead, you top up your debit card to make e-payments.
Payroll cards: Payroll cards are employer-issued cards with a prepaid balance to facilitate scheduled payments. Employees get immediate access to funds deposited by the employer as their salary without having to worry about having a bank account, as the card is linked to the payroll account.
Other prepaid cards: Digital merchant banking and payment apps also offer free cash cards that can be ordered online. These accounts do not require a minimum balance, maintenance charges, or any interest on the amount. You can digitally transfer funds to the linked cash card via an app and use the funds for payments at stores or online shopping platforms.
Gift cards are also cash cards that come with pre-loaded balance to be spent on a purchase.
Top free cash cards
You can apply for one or more of the following cash cards linked to payment networks, merchant services, or even apps that offer financial services.
CashApp Cash Card
If you already have an account registered with CashApp to enable merchant banking and in-store transactions, you can order a free Cash Card. The card is compatible with the Visa network. You can apply for the card on CashApp, and the prepaid chip-enabled card will be delivered within a few weeks to your residence. Once you receive the physical card, simply activate the same using the QR code on the card and start using it as you would normally use any prepaid debit card. Applicants as young as 13 years old can apply for the card with parental approval. And those who are over 18 can apply without any restrictions or limitations to avail of the free cash card facility.
Square Cash Card
If you own a business and are in need of digital money to access funds, consider applying for the Square Prepaid card. You can open the account without worrying about recurring fees or obligation to maintain a monthly balance. The card can also be used to withdraw cash from the nearest ATM. The funds are stored digitally in the square balance account and can be easily tracked to know exactly how much is being spent or collected to operate the business. The card comes with a two-step verification process and is synced to your checking account. You can also activate or lock your card using the Square application to prevent unauthorized access. The basic account features a free cash card with no monthly fees necessary. But you can also check out the premium account with services for business owners starting at $35/month for advanced features. Large-scale enterprises can even get a custom quote for enterprise-level solutions for managing inventory receipts and payments.
Mastercard® cash cards
Mastercard® is one of the top two premier payment networks used by banks and financial institutions for introducing free cash cards. Its electronic chip card enables easy money storage and can be conveniently used for payments across popular merchants. There is no comprehensive credit check or bank account required, as you will be able to spend only the value stored on the card. Branch App, Credit Sesame, H&R Block Emerald Prepaid MasterCard, Netspend Prepaid, PayPal Prepaid, Revolut, and Venmo Mastercard are among the top prepaid cards. You can apply to use these cards for payments and merchant banking transactions.
Visa cash cards
Visa is another network partner to consider, with multiple banks and financial institutions being part of its payment gateway. Visa’s ONE VIP, Netspend, smiONE™ Prepaid, ACE Elite Prepaid, CUMONEY® Visa® Everyday, Cashpass Visa, and Commerce Bank are among the top prepaid cards on the payment network. These free cash cards can be obtained without a comprehensive background check for payment at offline and online merchants. The application procedure is straightforward. These cards are great for students and homemakers who want to avoid carrying cash or maintaining a credit score and bank account with a high minimum balance.
There are several alternatives for individuals and businesses to get free cash card facilities to simplify their transactions. Digital payments are increasingly becoming secure and usually come with two-factor authentication to prevent unauthorized access. Cash cards are the perfect way to pay for products and services without the hassle of paperwork.
Property prices are eternally on the rise. Therefore, the demand for home loans is almost always high. To get a home loan, seekers must maintain a good credit score and overall loan repayment behavior. These criteria may seem simple, but fulfilling them becomes challenging for several loan receivers. Due to that reason, many people find it challenging to get conventional loans approved. Pre-approved FHA home loans are the solution for such situations.
What is an FHA home loan?
The Federal Housing Administration (FHA) approves and backs these loans under the jurisdiction of the Department of Housing and Urban Development. Although the FHA pre-approves these home loans, private lenders provide the money directly to loan seekers. These lenders can be credit unions, banks, or even some nonbanks, such as online lenders, who are FHA-backed and licensed to be part of the partnership. FHA home loans are known for their low down payment and interest rates. Usually, first-time home buyers and people with credit payment challenges opt for these loans due to their accommodating and lenient nature.
While the federal government does not directly issue FHA loans, it pre-approves and insures them to safeguard the private lenders who offer them to home loan seekers. The insurance bit comes in handy for the lenders when people who take these loans default on the repayments. FHA home loans help buy or refinance several types of homes, such as two-to-four-unit multifamily homes, condominium units, single-family houses, and precisely manufactured homes attached to permanent foundations.
While people who receive this loan can use it to build new constructions or renovate existing homes, all properties built using them must undergo FHA appraisal.
Requirements to get an FHA home loan
Individuals looking to receive an FHA home loan need to tick certain boxes, such as:
The loan will only be provided if the home being built or bought is a primary residence and not a second home or an investment property.
As specified earlier, the home built or bought with FHA home loans must be appraised by an FHA-approved appraiser beforehand.
Loan seekers will have to let FHA officials inspect the property. After the evaluation, a report can be created regarding the same. This report will contain detailed information about whether the home meets minimum property standards.
Apart from these, aspects of the loan, such as the down payment amount, credit score, mortgage insurance, loan limits, and income requirements, will also be carefully considered before the loan is handed out to seekers.
The FHA holds the authority over the approval or rejection of these loans. Also, this body can add or remove criteria for specific scenarios.
Process of getting an FHA home loan
The loan criteria is only the tip of the iceberg when it comes to FHA home loans. Here’s the complete process of how these loans work:
Show valid documents to confirm that loan seekers meet the minimum requirements, which include a credit score of at least 580 (which is comfortably lower than the 620 that most banks demand in return for conventional home loans), proof of income, records showing no recent bankruptcies, residential address, social security details, and other personal information for verification purposes.
The second step involves choosing an FHA-approved lender to receive the money. Lenders need to have experience in loan origination, possess licensing in each state the lender serves, have a positive net worth, have a bond, a completed application and incorporation papers, and maintain detailed credit reports for loan officers as well as the lender themselves.
While looking for lenders, loan seekers can compare terms, rates, and fees each lender offers before zeroing in on one. Individuals looking for FHA home loans can also consider factors such as the lender’s customer service, physical location, and typical customer.
The next step involves applying for and getting pre-approval from the FHA for a loan. A Pre-approval is the process of a lender reviewing loan-seekers financial documents and credit history before letting them know about their eligibility for an FHA loan. While pre-approval does not guarantee the reception of a loan (there needs to be a further evaluation before that), it speeds up the process.
The subsequent step is to provide documents and officially apply for a loan. That includes submitting the following information: income sources, income amounts, housing expenses, details about previous and current employment, and recurring debts.
The next step involves property inspection and appraisal by a certified FHA appraiser. After this, the FHA will perform the underwriting and approval of the loan. The final step involves signing the loan documents and paying the closing fees and costs of the lender and FHA’s services.
Benefits of FHA home loans
Low creditworthiness requirement
As alluded to earlier, the credit score requirements to receive these loans are much lower than that of conventional loans. This alone makes it easier for people with less-than-perfect credit history (a large majority) to get the loans to build or buy the house of their dreams.
Low down payment
While receiving FHA loans, one can access financing for their home with only 3.5% needed as a down payment. This figure is considerably more affordable than the 20% figure that most other loan providers demand from seekers.
Low DTI requirements
A person’s debt-to-income (DTI) ratio compares their monthly debt to their income. There are many people who earn low incomes and have inherited huge debts from their families. For such individuals, the low DTI requirements of FHA home loans are a welcome relief while looking for financing or refinancing avenues for their houses.