If You Have More Than $1,000 in Your Checking Account, Make These 7 Moves
You’ve done it. You’ve built up a little cushion in your bank account — $1,000! It feels good, right? Those days of checking your account balance in a panic are behind you.
Congrats! You’re on the right path. Now it’s time to think about some longer-term goals. What do you want to accomplish next with your money? Do you need to save more? Do you want to buy a home someday? Invest?
What’s the next step you should take? What are some specific things you can do to take your finances to the next level?
We’ve got some ideas for you:
1. Earn 50 Times the Average Interest
Most bank accounts pay you a pittance in interest on your money, and they charge you hefty $35 overdraft fees whenever they can. Why let them rip you off?
Luckily, we’ve found an online account that pays you back with the highest interest rate we’ve seen in some time. One pays you up to 50 times* the national average.
Not only that, but One also lets approved customers borrow money from an affordable line of credit that it makes available to you. It also allows you to overdraft your account without charging you any fees.
One is a hybrid account that combines spending and saving, and keeps your money in different “Pockets.” There’s a Spend Pocket that functions like a checking account with a debit card and a Save Pocket that pays a nice interest rate of 1.00% APY** — way higher than most other banks.
But the big draw for customers is the “Auto-Save” Pocket, where you can automatically save money via direct deposit and/or debit card purchase round-ups. It pays out a whopping 3.00% APY** — 50 times* the average interest rate for savings accounts.
Even better? One accounts are FDIC-insured and protected by bank-level encryption, so you know your money’s safe.
Signing up is easy. Just type in your basic info. They do a soft credit check, which won’t hurt your credit score, then you finish your profile and start earning 50 times the national average interest.
2. Cancel Your Car Insurance
When was the last time you compared car insurance rates? Chances are you’re seriously overpaying with your current policy.
If it’s been more than six months since your last car insurance quote, you should look again.
And if you look through a website called EverQuote, you can see all your options at once.
EverQuote is the largest online marketplace for insurance in the US, so you’ll get the top options from more than 175 different carriers handed right to you.
Take a couple of minutes to answer some questions about yourself and your driving record. With this information, EverQuote will be able to give you the top recommendations for car insurance. In just a few minutes, you could save up to $610 a year.
3. Stop Wasting Thousands Because of Your Bad Credit Score
Between higher interest on your car loan and credit card balance, your bad credit score could be costing you thousands of dollars each year.
But there’s a debit card called Extra that can help build your credit without any of the hassle.
It’s the only debit card that can positively impact your credit score without any of the risks that come with a regular credit card — there’s no credit check, no interest and no deposit required to use it.
But there are rewards: When you sign up for an Extra debit card, you’ll connect your existing bank account and get a credit limit based on your real-time cash balance. Then Extra will report your purchases as credit-worthy payments to the credit bureaus, just like a credit card company would, and give you points to spend on everything from beauty products to Apple Airpods.
It takes just a few minutes to get started. Click here to apply. It could save you thousands of dollars.
4. Ask This Website to Help Pay Off Your Credit Card Bill
No, like… the whole bill. All of it.
While you’re stressing out over your debt, your credit card company is getting rich off those insane interest rates. But a website called Fiona could help you pay off that bill as soon as tomorrow.
Here’s how it works: Fiona can match you with a low-interest loan you can use to pay off every credit card balance you have. The benefit? You’re left with just one bill to pay every month, and because the interest rate is so much lower, you can get out of debt so much faster. Plus, no credit card payment this month.
Fiona can help you borrow up to $250,000 (no collateral needed) with fixed rates starting at 2.49%.
Fiona won’t make you stand in line or call a bank. And if you’re worried you won’t qualify, it’s free to check online. It takes just two minutes, and it could save you thousands of dollars. Totally worth it.
All that credit card debt — and the anxiety that comes with it — could be gone by tomorrow.
5. See if You Can Get Free Money From This Company
Here’s the deal: If you’re not using Aspiration’s debit card, you’re missing out on free money. And who doesn’t want free money?
Yep. A debit card called Aspiration gives you up to a 10% kickback every time you swipe.
Need to buy groceries? Free money.
Need to fill up the tank? Bam. Free money again.
You were going to buy these things anyway — why not get free money in the process?
Enter your email address here and link your bank account to see how much extra cash you can get with a free Aspiration account. Don’t worry. Your money is FDIC insured and under a military-grade encryption. That’s just nerd talk for “this is totally safe.”
6. Let This Finance App Surprise You with up to $1,250
If you’re like a lot of us, you just never get around to saving money. Hey, we know what that’s like. After all, roughly 45%1 of Americans haven’t really gotten around to saving any money. It’s just a fact of life.
So how can you save money, really?
The online finance app Chime offers automatic savings features that help you tuck away money without even thinking about it. We interviewed Samuel Demeny, who regularly uses his Chime Savings account. According to him, in just nine months, he saved up $1,250 — without even thinking about it.
Chime has two automated savings options: One feature rounds up your purchases and saves the change every time you spend, and the other lets you save a percentage of your check2 every time you get paid. (Both features require you to sign up for a Chime Spending Account first, but it’s quick and easy to do.)
The money adds up quickly, and it’s completely automatic.
It takes just five minutes to open an account and see how much you could save.
7. Earn $10 in Cash Rewards Just for Tracking Your Credit Score
Like it or not, that number, somewhere between 300 and 850, is a symbol of your financial worth. Getting your score to budge in the right direction, even a little, usually requires money — whether that’s an extra credit card payment or ponying up for expensive services.
But a free tool called SoFi Relay wants to reward you to monitor your credit.
Yep. SoFi will pay you $10 in cash rewards just for tracking your credit score and the factors that impact it. Just sign up for its free credit-monitoring services to get rewarded — and no, tracking your credit with the app won’t hurt your score.
Think of the cash as a little nudge prompting you to keep monitoring your credit, saving money and building good financial habits.
You can deposit your cash rewards bonus directly into a SoFi Money account, or a SoFi Invest account. Both take only a few minutes to set up and have no account fees or minimum-balance requirements. SoFi Money earns interest at six times the rate of the typical savings account.
Credit monitoring and an emergency fund — it sounds like the start of something great. Get started here to see how much you could improve your score.
* The Penny Hoarder is a Paid Affiliate/partner of SoFi. This material is not intended to serve as a recommendation and is not meant to suggest that any of the products mentioned are suitable for all Members, as individual results, needs, and financial situation may vary.
** Please refer to SoFi.com to review all product disclosures, terms and conditions, state restrictions, and fees where applicable.
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC.
1According to a GOBankingRates savings survey
2Round Ups automatically round up debit card purchases to the nearest dollar and transfers the round up from your Chime Spending Account to into your savings account. Save When I Get Paid automatically transfers 10% of your direct deposits of $500 or more into your savings account.
*Investing involves risk. Performance not guaranteed.
*Based on October 20, 2021 Bankrate.com weekly national average interest rate for savings accounts survey of 0.06% APY
**Annual Percentage Yield effective as of 9/1/2020 and subject to change. 3.00% APY available on all Auto-Save balances. Maximum contributions of up to $1,000 per month for paycheck Auto-Save and no maximum contribution for card Auto-Save. 1.00% APY available on Save balances up to $5,000, up to $25,000 with a qualifying paycheck direct deposit.