CFI.co Blog

It’s no secret that COVID-19 has created a financial crunch for just about everyone. As you look for ways to make your money stretch further, you might have started looking at various bonus offers and considering switching some of your service providers.

Nowadays, almost every bank is advertising new checking account offers, and that “free” money sounds pretty good. But, is switching bank accounts really worth it?

That’s a good question! Stick with us as we explore the pros and cons of taking advantage of new checking account bonus offers.

3 Ways to Get a New Checking Account Bonus

Before diving into the things to ask before switching banks, it’s important to note that there’s more than one way to take advantage of new checking account offers. Most offers don’t actually say that you have to close your old account.

Typically, they’ll require you to make a minimum deposit and perform specific tasks, like completing a certain number of transactions, setting up direct deposit, or using their app. It’s important to read the fine print carefully and understand exactly what you need to do to get your bonus. Once you understand the requirements, you’ll likely have three options:

1. Keep your current checking account exactly as it is and open an additional account with the new bank
2. Make a partial switch, moving certain payments and deposits over to the new account
3. Close your old accounts and move everything over to the new bank

Most people choose the third option because they don’t want to deal with the hassle of managing multiple accounts. However, there are pros and cons to each approach. It’s a good idea to consider the following questions before you decide.

Questions to Ask Before Making the Switch

Sometimes, it’s clear that you need to switch to a new bank. If you’re having problems with your current bank – like ridiculously high fees or poor customer service – then it makes sense to take advantage of a new checking account bonus.

However, if you’re thinking about making a change purely for the extra money, there are some important things to consider.

1. Is the Bonus Really Worth It?

How much money do you need to make it worth your effort? Do you have to jump through a bunch of hoops to get it?

If you’re really cash-strapped then even a small bonus might sound appealing. If the bank is offering something else, like rewards points or a charity donation, you’ll have to consider whether you’ll receive a sufficient benefit to make the change a smart move.

2. Are There Any Drawbacks?

Be careful not to let the bonus offer distract you from the potential drawbacks of working with the new bank. If there are monthly fees or high minimum balance requirements, then it’s likely you’re going to be unhappy in the long run.

You’ll want to look at the new bank’s maintenance fees, ATM fees, and overdraft fees. Also, consider the new bank’s opening hours and whether the website and app are user-friendly. Do they offer other services you need like mobile deposit, easy transfers, and plenty of ATM machines?

Compare all of these things to your current bank and make sure that making the change won’t end up being a downgrade.

3. How Much of a Hassle Will it Be?

To make the switch, you’ll need to open a new account, initiate a transfer, and make sure you meet all of the bonus requirements. Transferring all of your auto-debit bills is usually the biggest hassle.

It’s easy to make a mistake and you could end up missing payments or bouncing checks. This can lead to late fees, damage to your credit rating, and more. 

If you’re going to make a full switch it’s in your best interest to make sure the bank you choose is one you’ll want to stick with for the long term. Bouncing from one checking account to the next is rarely worth the trouble, even if you do get a bonus each time.

4. How Much Do You Really Like Your Bank?

Are you at your current bank because you really like the services they offer? Or is it just a matter of habit? If there’s nothing special about your bank and you’re comfortable with the answers to the other questions above, then now might be the perfect time for you to make a switch.

Tips for Finding the Best New Checking Account Offers

Doing a bit of research online will help you find out which banking institutions are offering checking account bonuses and exactly what they’re offering. However, it’s important to consider which offers are most valuable to you.

For example, if you overdraft your account frequently, then switching to a bank that’s offering fee-free overdrafts might be a great move for you. However, if an offer requires a large minimum balance that you don’t think you’ll be able to maintain, then moving to this bank will likely end up being a waste of your time.

Remember, in most cases, looking for a long-term partner instead of just a quick cash bonus will bring you the greatest benefit.

Making Smart Financial Moves in a COVID-19 World

Taking a close look at new checking account offers and other bonuses is one way to give your finances a boost, but that’s certainly not your only option. If you want to keep your finances on track, knowledge is power. We suggest taking some time to browse through more of our financial articles. 

We’ll help you stay up to date with all of the latest financial developments and provide you with tips you can start implementing right away.  

Are you tired of getting hijacked by ATM machines with big charges when you want some cash? Do you find yourself paying 25 percent or more of the amount you want to get out? Want to know how to avoid those fees?

There are many tips and hacks you can use to stop being hit with big fees just to get at your money. We’ve given this some careful thought because we’re also tired of the insane charges ATM operators put on using their machines.

So, read on to learn about six of the best ways to avoid ATM fees. From research and planning to choosing the right account, we’ve got your back so that you don’t pay for your own cash anymore.

1. Use ATMs for Your Bank

Using ATMs that are part of your bank’s network is the best and easiest way to avoid ATM fees. Big, chain banks have a lot of fee free ATMs to use, especially in larger urban areas. These ATMs won’t cost you anything when you withdraw cash from them. 

You can search your bank’s website or mobile app for no fee ATM near me to find ATMs run by your bank. However, if you do use an ATM that isn’t run by your bank you could incur a fee from your bank as well as the company that runs that particular ATM.

So, always try to search for an ATM that is part of your bank’s network if you can.

2. Open an Account at Banks with no ATM Fees

If you are considering opening a new bank account, do some research to find banks with no ATM fees.accounts. Or, if you find yourself always having to pay for cash from an ATM, it might be time to think about switching banks. In that case, look for a bank where you can get an account that doesn’t charge you ATM fees. 

Many online banks have agreements with ATM networks that mean you don’t have to pay the network’s ATM charges. These online banks will usually have an ATM finder service as part of their website and app. Use this service to locate the nearest no fee ATM when you need cash quickly.

3. Get Cash Back at the Grocery Store

Another great way to get cash for free is to ask for cash back when you make a purchase at a grocery store or other shop. This works best if you pick up cash as part of your regular shopping trip. Then keep that cash handy in your wallet.

However, if you need cash quickly, you can still use a store as your ATM. Simply make a small purchase at the store. Because ATM fees are usually three pounds or more, buying a chocolate bar or bottle of water, for example, will cost you far less than the ATM fee. 

4. Keep More Cash on Hand

Although you can’t always plan ahead to know how much cash you’ll need and when, a little forethought can go a long way to reducing the chances of unwanted ATM fees. When you do get cash out, try to get more than you need right then. Having some extra cash at home or in your wallet or purse will reduce your ATM fees.

Taking larger sums out of the ATM when you do visit also means that if you do have to pay a fee, you’re getting more cash for the charge. So, you’re cash costs you less if you have to pay for it.

Putting together a home budget for each month will give you a sense of how much cash you generally need. With your budget in mind you can go once a month to the ATM and withdraw what you need all in one go. Then, just keep your wallet or purse topped up with the cash you’ll likely need that week.

5. Find Out Which Other Banks Your Bank Has an ATM Fees Agreement With

Many banks have agreements with other banks or ATM operators. These agreements let you withdraw cash from those ATMs without a fee. Check with your bank or search online to find out what other ATMs you can use.

The ATMs that are part of your bank’s network agreement might also include non-bank ATMs. These ATMs are the ones you find in shops, bars, or petrol stations. Those ATMs are often the most expensive to use for cash withdrawals. 

6. Go Cashless

A really easy way to avoid ATM fees is to try not to use cash. Fortunately, this is becoming much easier. Mobile apps, debit and credit cards, iPay and equivalents, Venmo, Paypal, and so on, all offer the opportunity for cashless transactions. 

With the exception of some entertainment options and small shops in out of the way locations you can often choose not to spend cash if you really don’t want to. Some shops and services still have a minimum transaction amount to use your card. But those minimums are often still less than an ATM fee.

Reducing the amount of times you need cash means you won’t need to hit the ATM very often. The fewer times you have to go to an ATM the less you will spend on those pesky fees. 

Stop Wasting Money on ATM Fees

ATM fees can quickly add up. If every time you use an ATM you pay three or more pounds for the privilege of taking your own money out, your monthly costs will soon make getting cash out not worth it.

As you can see from our list of tricks to avoid paying ATM fees, though, there are plenty of ways you can reduce the chance you’ll get stuck with those charges.

Plan ahead and have ecash on hand. Get a bank account with a large network of ATMs to use for free. Use your bank’s app to find free ATMs near to you when you need one or try to use less cash in the first place!

For more money-saving tips, insights on the economy and your finances, or business news and more, check out our blog. We’ve got you covered with insider hacks and business news and ideas. 

People take out loans for many reasons. Some people take out loans for a house remodel, a new computer for work, or a wedding. Whatever the reason for taking out a loan, it’s always a big decision. 

When making a big purchase, you want to consider every option so you get the best rate possible. Many vendors provide their financing solutions. However, it is in your best interest to consider other options. 

One of the best options for purchasing is a fixed rate personal loan. But what is a fixed-rate loan, and why are they better? 

What Is a Fixed Rate Personal Loan? 

Many people prefer fixed-rate loans because the interest rate and monthly payment of the loan are consistent throughout the loan’s life. That’s ideal for people on a tight budget who need to plan for a specific amount each month. 

One common example of a fixed-rate loan is a thirty-year mortgage. With these kinds of loans, purchasers keep the same fixed payment amount for the entirety of the loan until it is completely paid off. The loan doesn’t have to be for a house, though. You can take out a loan on just about anything. 

Most banks will require a statement of what the loan is for before they give you the money. As long as it’s for nothing illegal, and you have the income that shows you can make the payments, you should be good to go for whatever it is. 

Interest rates depend on the loan amount and your credit score. As a rule, the larger your monthly payment, the lower your interest rate. In other words, the quicker you pay off the fixed-rate loan, the less interest you’ll pay in total. 

Fixed-Rate Loan vs. Seller Financing

Many vendors will offer in-house financing for their items. This is tempting because you don’t have to wait for loan approval and experience that instant gratification. 

However, before you commit to seller financing, it is in your best interest to explore other loan options. With a personal loan, you will get a better interest rate. That results in a lower overall purchase cost. 

 With a personal loan, you can decide how much money you need to make the purchase. Instead of financing the entire purchase, you can finance only part of the purchase. 

Seller financing typically has much higher interest rates. So, if you do not plan on paying off the loan within a short amount of time, you will end up paying more in the end. 

With a fixed-rate loan, you know exactly how much you’ll spend overall on the purchase before you sign the contract, no matter how long it takes you to pay the loan. 

What to Consider Before Getting a Personal Loan

Before getting a personal loan from a bank, it’s a good idea to determine a few things. First, figure out how much money you need to borrow. Most lenders have a minimum requirement for personal loans. Some minimums are as low as $500. However, others are twice that. 

You don’t want to take out a loan that’s bigger than you need. If your loan is under $500, consider other options.

Before you qualify for a loan, consider how long it will take to pay off. Some loans can be paid off in a matter of months, others years. Depending on your monthly payments and the loan amount, you have to decide how long you’re willing to take. 

Finally, the most important factor to consider is whether or not you can afford the monthly payments. No matter how big or small the payment is, you have to pay it every month on time to avoid extra fees. 

Credit Scores and Loans

Your credit score determines the kind of rate you get on the loan. It could also determine what kind of loans you have access to. If your credit score is too low for the kind of loan you want, you have two options. You can wait to make the purchase and build up your credit in the meantime. Or, you could have a co-signer on the loan. 

Another thing to think about is how the loan will affect your credit. If you don’t have much credit, having a loan and paying it off may improve your credit.

As long as you pay the monthly payments every month on time (or if you pay the loan off early), your credit score shouldn’t be negatively affected. 

Paying Off Credit Card Debt With a Personal Loan

If you have several maxed-out credit cards, you can use a fixed rate personal loan to consolidate the debt into one payment. Since fixed-rate loans have better interest rates and lower fees than credit cards, this can save you some money as well. 

Some loan companies will pay the loan money directly to the credit card company. That way, you only have to worry about paying the one fixed-rate payment a month. 

Other people choose to refinance their student loans into fixed-rate personal loans. This is an option for people who cannot afford their previous monthly rates. However, this keeps you from taking advantage of any government assistance with your student loan.  So, whether that is helpful to you or not depends on the amount of student debt left on the loan. 

Find More Finance Advice

If you’re thinking about making a purchase, consider all your options. Before you go through with seller financing, look into your fixed-rate personal loan options. That could save you money and hassle in the future. 

Before settling on a loan, make sure you can afford the monthly payments, check your credit score, and ensure you have a regular, reliable income. If you do those things, a fixed rate personal loan is a good option for you. 

If you found this article helpful, visit our blog for more financial advice. 

If you have a checking or saving account with a bank, you may know something about bank fees. Yes, those dreaded fees that come up ever so often. They are pricey and bothersome as they tend to come up in times that you may not have money in your account to pay for them. 

It seems that nowadays banks have a fee for everything. These fees can certainly add up fairly soon. Too many, and you might end up having to close your checking or saving account as you will find yourself having a low account balance or, even worst, find yourself in the negative. 

It is important to be familiar with the bank fees that are imposed by your bank. You can avoid many annoying fees that arise when using your bank. We all know that saving each penny matters, so learn how not to fall victim to charges.

1. Overdraft Fees

Bank fees can hit you from the left and right. One of the most common is the overdraft. You may be familiar with this fee if you have withdrawn more money then what you had available in your account. 

This is a bank fee that one can find themselves paying if they have purchased something that cost more than the money they have in their account. In the case of an emergency, you may find yourself having to pay for this fee if you end up buying something and you don’t have the money for it. 

The amount that you are charged for an overdraft depends on the bank. Fortunately, there are ways to avoid overdraft fees. Contact your bank associate to inform him or her that you want to opt-out of the overdraft service. This will prohibit a transaction from being approved if you don’t have the funds available in your account. 

2. Monthly Maintenance Fees

One of the most dreaded bank fees is the monthly maintenance fee. This is like a fee that you can expect to see every 30 days. Some banks have it in writing that they charge a fee to maintain your account. They inform you of this when you open the account. 

In most cases, monthly maintenance fees are avoidable. You have to meet certain criteria to avoid monthly maintenance fees. For example, if you have a large balance in your account, you may not need to pay such fees. If you have direct deposit, you may not need to pay for monthly maintenance fees.  

3. Card Replacement Fees

Card replacement fees are what you have to pay to the bank if you need to order a new debit card. If you lost your debit card or accidentally damaged it, you may have a double whammy. Not only do you no longer have a debit card, but you must also pay the bank to receive a new one. 

The bank will charge you a fee for this service. The new card may take about a week to be mailed to you. If you want it to come faster, some banks give you the option of expedited service. Pay a little bit more for rush delivery.

Yes, this is like rubbing salt into your wounds. 

Unfortunately, there is not much you can do this avoid this bank fee. If you lose your debit card, you will need a replacement one. You need to keep your debit card safe so you do not lose it or damage it. 

4. ATM Fees

There are fees that you may have to pay for if you use an ATM that is out of your bank’s network. If you find yourself in an area where there are no ATMs sponsored by your bank and you have an emergency, you may have to withdraw from an out-of-network ATM. 

This is a bank fee that can cost you double. The owner of the ATM may charge you a small fee, and your bank will charge you another fee. 

To avoid this type of bank fee, make sure you carry money, especially in the case of an emergency where you may need to pay with cash as credit cards may not be accepted. If you are looking to open a new bank account, make sure to open an account with a bank that has a large network of ATMs.

Also, consider asking your bank if they can reimburse you for the ATM fees. This is a service that some banks may provide you. 

5. Inactivity Fees

You may be asking yourself, “Why do banks charge an inactivity fee?” Quite shockingly, many banks do charge inactivity fees. If you have a bank account and have not used it in a specific period, expect to see this type of bank fee in your bank account statement. 

Banks do not want to have customers who have inactive bank accounts. It is not good for their business. You may find yourself having to pay for this fee if you have not had any activity in your account in a year. 

These Bank Fees Can Add Up 

No one likes to lose money, especially if they have to give it away to a bank. Bank fees can add up. And for the most part, they can be avoided. 

Make sure that you are aware of the bank fees that your bank charges. This information you can find on a bank’s website. Take the actions that are necessary to avoid bank fees. 

Consider joining a private bank that may not impose these charges. If you would like to read more about private banks or finance-related topics continue to explore the website. 

Most people need only two bank accounts: one checking account and one savings account. This keeps things simpler and your finances easier to manage.

Savings accounts limit your access to your money, which is why they’re best for saving. Checking accounts, though, allows you easy access.

These are for spending, so they’re for paying bills, withdrawals, and so on. That’s why every person must have them.

If you’re a beginner to all these, you’re in the right place. Keep on reading for some tips on opening a checking account.

1. Know Your Needs and Frustrations

When opening a checking account, you first need to choose a bank. However, all the options can overwhelm you.

There are online banks, traditional banks, and even credit unions. Then, there are lots of options under each category.

To start choosing a bank, know your needs and frustrations first. What services are important to you? How about perks you’d like to get with your checking accounts?

Then, know what frustrates you, as well. Do you want to avoid huge fees? Do you have issues with certain features or requirements?

If you travel a lot or are online often, you may also want to use mobile banking. Check if the bank offers that as well.

Knowing what you like and don’t like will allow you to shortlist banks and the types of checking accounts.

2. Review the Features of Different Banks

Once you have a shortlist of different banks, it’s time to review their features, fees, and services. Check the minimum balance requirements and any fees, like the monthly service fee, overdraft fee, ATM fee, printed statement fee, and other fees you can incur.

You should also check out the insurance that the bank provides. Make sure it’s from either the National Credit Union Administration (NCUA) or Federal Deposit Insurance Corporation (FDIC).

The interest and rewards will also vary per institution. Check which features are more convenient or more preferable to you. The ATM network is something to consider, as well.

3. Consider a Lower Risk Account

Some banks and credit unions don’t allow you to overdraft. Meaning, you can only spend the money you have in your account. Even for online bills payment and checks, the account won’t let you overdraft.

Such accounts pose lower risks as you won’t get surprised with an overdraft fee or other common banking fees. These can go unnoticed, especially when people think they still have money they don’t have. You also cut the risk of losing your account privileges only because of some unpaid overdrafts.

Don’t hesitate to ask the bank if they have a “no-overdraft” account. Some have them but don’t market them, while others may not have them at all.

4. Visit the Bank In-Person

Modernized banks and online banks allow you to do everything online – from applying for accounts to sending e-documents. This makes for a smoother experience as you can open an account without stepping foot out of your home.

However, some people might prefer doing this process in person. If this is you, don’t hesitate to visit the bank you’re interested in. This also gives you an idea of their locations and if they have one near you.

This is also the preferred choice of other banks that are yet to modernize. In that case, you’ll have to schedule an appointment.

5. Ask the Right Questions

When you visit a location in person, prepare a set of questions to ask the teller, particularly about opening a checking account balance. Don’t hold back; opening up an account can be a long-term commitment.

Ask about all kinds of fees you can incur and how you can avoid them. Make sure you know the minimum balance requirements. And, clarify if this is for one account only or for across all accounts you have with them.

Clarify the withdrawal and transfer limits, as well. Then, ask how much are the fees if you go over the limit.

6. Look for Online and Mobile Features

Not all banks are up-to-date with recent technologies. As such, don’t expect them all to have mobile and online banking features.

A bank app is a must because it makes banking more convenient. You won’t have to fall in line to transfer money, for example, and you’ll have access to your balance at all times. Some of them will even let you deposit checks via a mobile app.

So, before you sign any contract, make sure the bank has an app you can access online or download to your phone. Seeing as how we spend an average of 6 hours and 42 minutes per day on the internet, online banking is a non-negotiable feature.

7. Prepare the Minimum Deposit

The initial deposit should matter in your decision-making because, in some banks, the opening deposit can go as high as $100. Most usually ask you to deposit around $25 to $100 to open an account.

Find out if your chosen bank and account needs a deposit and prepare that before applying. Even if you’re qualified and you have all the documents you need, you won’t be able to pursue the application without it.

Some accounts don’t require a deposit right away, though. Look for these accounts if the deposit is an issue for you.

8. Bring the Necessary Documents

To ensure a smooth process, research all the documents you need to bring when going to the bank. It’s a fairly simple process, but only if you prepare everything you need ahead of time.

Research the requirements for a checking account from your bank of choice. Remember that these may be different when you’re underaged or more than one person is opening the account.

Aside from the filled-up forms, banks usually require identification documents. In general, you’ll need a government-issued ID, SSN or TIN, and proof of address. You may also have to bring your student ID, power of attorney, or anything else for special cases.

Review Checking Accounts Before Committing

What we can take away from this is that you should review checking accounts before opening one. This ensures you get the best option for you and you’re satisfied with all the features, requirements, and terms before signing a contract.

If you have any questions, though, we’ll be happy to help. Contact us today.