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Why I’m Confused About Backdoor Roth IRAs and Traditional IRA Benefits

By Robert Brown

One of the most important decisions anyone has to make in achieving their financial goals is how to invest their money. This might sound like something you can decide in just a few minutes, but let this be a reminder that any decision now can have long-standing consequences, so you have to decide carefully what your first or next move is going to be. 

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Key Points

  • This Redditor is trying to understand the importance of the backdoor Roth account.
  • They don’t quite understand how two things about Traditional IRAs and backdoor Roth accounts can be true.
  • There is nothing that this Redditor can really do until they have a higher MAGI.
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For one Redditor posting in r/personalfinance, there is a big question about how to navigate the backdoor Roth and IRA space, especially for someone with a slightly higher income. This backdoor Roth topic is an area where Reddit specializes in responses, so there is no question that this individual is going to get a few different answers. 

Why Should You Do a Backdoor Roth? 

In this Redditor’s case, they are understandably confused, which is fair, because the notion of a backdoor Roth might only be familiar to those who have really done their research. 

As a result, this individual understands that the purpose of this backdoor method is to get around the $0 Roth IRA contribution limit for high earners. This allows you to convert a traditional IRA into a Roth IRA, but they are taking this one step further and believe that it’s better to use the traditional IRA if you earn more. 

All of this is coming to a head because the Redditor believes that these two ideas cannot live together and are somewhat contradictory. In other words, if you make so much that you cannot contribute to a Roth IRA, why would you turn a traditional IRA into a Roth IRA if the traditional route tends to earn more? 

Ultimately, this Redditor knows that their MAGI isn’t yet high enough to contribute to a Roth, but they are thinking about the future, and good on them for doing so. 

Clearing the Air On Contributions

Unsurprisingly, a number of Redditors are jumping in here to make sure the original poster knows exactly what to do and how to understand everything that is taking place. 

One Redditor in the comments makes it straightforward by saying that there is only a small income window where a tax rate might be high enough to prefer a traditional over a Roth IRA plan. In this case, you need to be somewhere in the 22% tax bracket and under the $77,000 income limit. If you are someone who is in this income and tax window, the Redditor’s original thoughts might hold, but for everyone else, it’s not so simple. 

Alternatively, if you are someone who has an employee-sponsored retirement plan like a 401(k), you can’t deduct contributions to a Traditional IRA if your MAGI is high enough to meet the threshold limits. This is why someone would consider doing a backdoor Roth IRA, because it allows them to get around these tricky limitations. 

For this Redditor, the immediate advice is that they file jointly (husband and wife), contribute to a non-deductible Traditional IRA, and then convert it to a Roth IRA. They will only owe taxes on any investment gains during the time the money was in a Traditional IRA and not owe taxes on the original contribution amount. 

Other Important Advice

Ultimately, what the Redditor needs to do if they want to keep this very clean is either follow the advice immediately above, or stay on their current path and work to max out their Traditional IRA as eligible, and take advantage of the tax benefits. 

After this, they should focus on watching their Modified Adjusted Gross Income (MAGI) and see when they will exceed the income limits for a Roth contribution. Of course, the best advice is really to work with a financial advisor, as these kinds of questions are something a fiduciary can help with. They can advise you on the benefits and downsides of a backdoor Roth IRA regarding tax-free growth in retirement. 

Finally, it’s super important to remember to keep all of your records of IRA contributions and any conversions for tax purposes. The last thing you want is to find yourself in a sticky position down the road because you went wrong somewhere and end up owing the government more. 

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I Make $40,000 a Year – What Should I Do With My $800,000 Inherited Roth IRA?
Personal Finance

I Make $40,000 a Year – What Should I Do With My $800,000 Inherited Roth IRA?

Investing money in a brokerage account is a valuable starting point to building long-term wealth, especially if you’re also capitalizing on retirement accounts. You  can build your own wealth and pass it on to your kids if you stay financially disciplined. nextstayCCSettingsOffArabicChineseEnglishFrenchGermanHindiPortugueseSpanishFont ColorwhiteFont Opacity100%Font Size100%Font FamilyArialText ShadownoneBackground ColorblackBackground Opacity50%Window ColorblackWindow Opacity0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%200%175%150%125%100%75%50%ArialGeorgiaGaramondCourier NewTahomaTimes New RomanTrebuchet MSVerdanaNoneRaisedDepressedUniformDrop ShadowWhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%A low-income Redditor who earns $40,000 per year recently received an $800k Roth IRA and a $400k money market account as an inheritance. The individual is single and has one teenage child. It’s good to speak to a financial advisor if you can, but I’ll give some thoughts as if I were coaching a friend. -->-->Key PointsA Redditor who earns $40,000 per year just received an $800k Roth IRA inheritance.These are some of the strategies the Redditor can use to preserve wealth, get out of debt, and strengthen their long-term finances.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->Calculate Your Monthly ExpensesI can’t offer any suggestions on what to do with the money if I don’t know more information about someone’s finances. The advice for managing the $800k Roth IRA and $400k money market account will be different if someone spends $5,000 per month or $20,000 per month. The Redditor is earning $40,000 per year, which comes to roughly $3,333 per month before taxes.This isn’t the time to get bold and make high-risk investments. Someone who is earning $3,333 per month may be more vulnerable to debt, such as credit card debt. Squaring off those balances first with the money market account may be the best first step to take.We don’t know the APY on the money market account, and I would want to know that if this person wanted suggestions from me. However, if it yields 3% APY, the $400k account is generating $12,000 per year, which comes to $1,000 per month. The Redditor can consider a CD ladder to lock in a higher rate for a longer period of time, but it may not be necessary right now. The money market provides additional income, but it is taxed as ordinary income, which results in a higher tax bill.Let The Roth IRA Grow UndisturbedThe Redditor has enough money in the money market account to get out of debt and make expenses more feasible. However, the Roth IRA funds should stay put. Assets in a Roth IRA grow tax-free, and you don’t even pay taxes on any withdrawals. If you receive a Roth IRA as an inheritance, you have 10 years to withdraw all of the money from that retirement account. Waiting until the 10th year to withdraw money from the Roth IRA allows more of your money to grow tax-free. It’s the best setup.Keeping money in the Roth IRA instead of withdrawing from the account also makes the 49-year-old less susceptible to lifestyle inflation. One thing I would mention to anyone in this situation is that they are still only earning $40,000 per year. Receiving a big inheritance doesn’t justify someone who earns $40,000 per year upgrading to an $80,000 per year lifestyle. That’s why most lottery winners end up broke. They upgrade their lifestyles because they don’t have financial discipline, and then end up right back at square one.Put The Money Right Back Into A Brokerage AccountThe 49-year-old will inevitably have to withdraw money from their Roth IRA, especially in the 10th year. However, it doesn’t make much sense for the 49-year-old to use this account for any purchases. It’s better to put the money right back to an index fund in your brokerage account.If optimized correctly, the $800k Roth IRA can fund the 49-year-old’s future retirement. It does not seem like the 49-year-old has a nest egg of their own, and I would mention this in a conversation about money. Let the money continue to grow after withdrawing it from the Roth IRA so you can give it to your teenage child as an inheritance when the time comes. Some brokerage firms can connect you with a financial advisor for free, especially since the Roth IRA has $800k in it. That way, the 49-year-old can speak with an experienced financial professional who can map out a plan.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)DISCLOSURE:INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify.Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdfInvesting in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement [HYPERLINK https://www.sofi.com/iporisk/]. 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Earn up to 4.18% APY. Here are the best CD rates today, Dec. 8, 2025
Personal Finance

Earn up to 4.18% APY. Here are the best CD rates today, Dec. 8, 2025

It’s still a good time to earn a great return on a certificate of deposit, just don’t wait to take action. After declining in 2024 as the Federal Reserve cut rates, average CD yields stabilized in early 2025 thanks to the central bank hitting pause on more rate changes for several months. However, the Fed finally took action with its first rate cut of 2025 after meeting Sept. 16-17, then made a second cut in October.The best CD rates yield up to 4.18% annual percentage yield. If you choose to open an account today, you could lock in high rates for years, depending on the term that best meets your financial goals. Experts expect the Fed may cut rates again when it meets this week, so don’t wait to invest.ADVERTISEMENTAdvertiser DisclosurePrivacy policyPowered byBest CD Rates for December 9, 2025ZIP Code Deposit Amount $Min. Term Length 6 months1 months6 months1 year18 months2 years3 yearsMax. Term Length 3 years6 months1 year18 months2 years3 years4 years5 years6 yearsFEATURED OFFERSAPYTERMMIN. DEPOSITEST. EARNINGSLoading...4.25 %December 9, 20252yr$ 1000$ 1063Over 1 Year2 years cd AccountUnited Fidelity BankMember FDICQUICK LOOK4.20 %December 2, 20256mo$ 1000$ 1050Over 1 Year6 Mo CD cd AccountLimelightBankMember FDICOFFER DETAILSQUICK LOOKLimelight Bank is the online division of Capital Community Bank. It offers competitive yields on CDs, but it doesn’t offer any other types of bank accounts.READ BANK REVIEW4.15 %December 2, 20259mo$ 500$ 1038Over 1 Year9 Mo CD cd AccountM.Y. Safra BankMember FDICOFFER DETAILSQUICK LOOKM.Y. Safra Bank is an FDIC-insured institution with just one branch in New York City and also offers strictly online accounts. It provides a full range of personal and business deposit products as well as loans and lines of credit. Its online-only CDs offer the most attractive rates the bank has to offer, but its savings and money market accounts also offer decent yields.READ BANK REVIEW12345...160Today’s best CD rates: Earn up to 4.18%The highest CD rate of 4.18% is offered by Citibank on its three-month CD. Note that the rates Citi offers on its CDs may vary based on location.Fortunemonitors the top rates offered by leading U.S. financial institutions to help readers obtain the best possible return on their CD investments. Here are the best rates on the market:Pro tipLooking for the best CD to fit your investment needs? See rates from top institutions:–Wells Fargo–Capital One–Chase–Bank of America–Discover Bank–Northern Bank Direct–Ally Bank–Newtek Bank–Popular Direct–Citibank–Sallie Mae BankCompare CD rates at top national banksIf you’re unfamiliar with most of the names mentioned above, there’s a straightforward reason why: CDs typically don’t yield substantial income for major financial institutions by themselves. Established banks like Chase, PNC, and U.S. Bank prioritize attracting customers through more profitable products like loans and credit cards, rather than CDs. Consequently, the APYs offered on CDs at these banks are often much lower compared to those available at smaller regional banks or online institutions and to get a good rate, you may be required to open other deposit accounts or deposit much higher minimums.CD rates news 2025Investors should understand that average CD rates closely track Fed monetary policy decisions, specifically changes to the fed funds rate. It’s essential for CD investors to follow the ebb and flow of the central bank’s policy decisions to plan for changes in rates.The federal funds rate currently stands at 3.75%-4.00%.Last year, the Fed cut interest rates three times, leaving fed funds at 4.25%-4.50% as of December 2024. High inflation left over from the post-pandemic period was cooling off, and the FOMC reduced rates to help the economy stay on track. CD APYs fell from two-decade highs as the Fed cut rates.With the Fed making its first cut of 2025 at the Sept. 16-17 meeting and a second at the Oct. 28-29 meeting, CD rates have again shown signs of dipping. It’s possible they could decrease further if the central bank moves forward with a third cut when it meets in December. The next FOMC meeting is on the calendar for Dec. 9-10.Those 20-year highs in CD yields were the result of the central bank’s rate hike campaign of 2022 and 2023. Inflation was rising at its highest rate since the early 1980s, thanks to the economic disruptions of the pandemic. Between March 2022 and July 2023, the FOMC raised interest rates 11 times, from zero to 5.25%-5.50%, to help tame inflation.Just remember, CD rates today aren’t far from their recent highs. You still have the opportunity to secure advantageous rates on both short-term and long-term CDs. By depositing a larger lump sum into your CD, you can earn substantial interest.Check Out Our Daily Rates ReportsDiscover the highest high-yield savings rates, up to 5% for December 8, 2025.Discover the current mortgage rates for December 8, 2025.Discover current refi mortgage rates report for December 8, 2025.Discover current ARM mortgage rates report for December 8, 2025.Discover the current price of gold for December 8, 2025.Discover the current price of silver for December 8, 2025.Historical CD ratesIn the early 1980s, CD rates hit double digits thanks to surging inflation and high interest rates. But by 2019, the APY for a 5-year CD hovered slightly above 3.00%. Until the early 2020s, top rates generally remained below 1.00% APY. In recent times, we experienced a period of increasing rates, with the best offerings exceeding 5.00% APY for 1-year CDs.How to get a good CD rateDetermining what a good CD rate looks like is subjective. It depends on how much money you have to invest, how long you can leave it locked up in a certificate, and what prevailing market rates are when you intend to open an account.For instance, a 5.00% APY CD over five years might not be the right choice if you need liquidity sooner or if rates rise, leaving you with a lower return. Generally, rates above the national average are advantageous. Compare rates across banks for your desired term to find the best option.Key factors to evaluate when comparing CDs include minimum balance requirements, available terms, offered interest rates (typically higher at online banks), penalties for early withdrawals, and any associated fees. 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font-size: 12px; font-weight: 500; letter-spacing: .5px; line-height: 150%; margin-bottom: 8px; } #qsWidgetContainer176 .apy-label, #qsWidgetContainer176 .curDate, #qsWidgetContainer176 .prop-value { font-family: var(--graphik-compact), Graphik Compact, Arial Narrow, Helvetica neue Condensed, sans-serif !important; font-size: 16px !important; font-weight: 600 !important; line-height: 150%; } #qsWidgetContainer176 .curDate { font-size: 12px !important; font-weight: 500 !important; margin-top: 4px; } #qsWidgetContainer176 .listing-title .prod-name:hover { color: #111; } #qsWidgetContainer176 .shmktpl-button { border-radius: 0; font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif; font-size: 16px; font-weight: 600; height: auto; letter-spacing: .5px; line-height: 150%; padding: 12px 16px; } #qsWidgetContainer176 .ad-copy-bottom-section { padding: 0; } #qsWidgetContainer176 .prop-value-container { align-items: stretch; } #qsWidgetContainer176 .prop-conatiner { padding: 12px; position: relative; } #qsWidgetContainer176 .prop-conatiner:not(:first-child):before { background-color: #fff; content: ' '; height: calc(100% + 24px); position: absolute; left: -12px; top: -12px; width: 2px; } #qsWidgetContainer176 .sh-row-product-title { color: #666; font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif; font-size: 12px; font-style: normal; letter-spacing: .5px; } #qsWidgetContainer176 .see-more-text { background-color: #F2F2F2; } #qsWidgetContainer176 .see-more-text + .row-2 { background-color: #F9F9F9 !important; } #qsWidgetContainer176 .description-title { font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif; font-size: 16px; font-weight: 600; line-height: 120%; text-transform: none; } #qsWidgetContainer176 svg.shArrow path { fill: #111 !important; } #qsWidgetContainer176 #sh-star-icon { top: -2px; } #qsWidgetContainer176 #sh-star-icon svg path:first-child { fill: #007B9D !important; } #qsWidgetContainer176 #see_more_carrier, #qsWidgetContainer176 .see_less_carrier { background-color: #F2F2F2; color: #111; } /** CD Styles */ #qsWidgetContainer176 .cdBankingDesignChanges .sh-listing-container { padding: 0; } #qsWidgetContainer176 .cdBankingDesignChanges #sh-header-container { border-bottom: 1px solid #F2F2F2; margin-bottom: 0; padding: 6px 0; } #qsWidgetContainer176 #sh-star-icon:before { background-color: #007B9D; content: ' '; display: block; height: 10px; left: 0; position: absolute; top: 1.5px; width: 10px; } #qsWidgetContainer176 .listing-title { font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif !important; } #qsWidgetContainer176 .shmktpl-sponsored, #qsWidgetContainer176 .cdBankingDesignChanges .shmktpl-disclosure-button { color: #666 !important; font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif; font-weight: 600; line-height: 150%; } #qsWidgetContainer176 .sh-logo { flex-shrink: 1; } #qsWidgetContainer176 .shmktpl-sponsored { text-transform: uppercase; } #qsWidgetContainer176 .cdBankingDesignChanges .sh-listing-content-wrapper { box-shadow: none; gap: 24px; margin-bottom: 0; padding: 24px; } #qsWidgetContainer176 .disclosure-content ul li { font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif; font-size: 16px; font-weight: 500; letter-spacing: .5px; line-height: 150%; } #qsWidgetContainer176 .sh-fdic-insured .sh-icon svg path { fill: #666 !important; } #qsWidgetContainer176 .cdBankingDesignChanges .sh-row-product-title.sh-date { margin-right: 0; padding-top: 0; } #qsWidgetContainer176 .cdBankingDesignChanges .sh-row-product-title.sh-bank-name { font-style: normal; font-weight: 400; margin-right: 0; margin-top: 4px; } #qsWidgetContainer176 .cdBankingDesignChanges .sh-row-container { align-items: flex-start; } #qsWidgetContainer176 .cdBankingDesignChanges .product-details-container > .sh-row-container { align-items: center !important; 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font-weight: 600 !important; letter-spacing: .5px !important; } @media only screen and (width: 768px) { #qsWidgetContainer176 .cdBankingDesignChanges .sh-row-product-title.sh-bank-name { position: relative; top: initial; } } @media only screen and (max-width: 767px) { #qsWidgetContainer176 .cdBankingDesignChanges .sh-first-product .sh-title-container { padding: 0; } #qsWidgetContainer176 .prop-conatiner:not(:first-child):before { height: 2px; left: 0; top: -12px; width: 100%; } #qsWidgetContainer176 .sh-row2-container { flex-basis: 100% !important; padding-bottom: 8px !important; } #qsWidgetContainer176 .sh-first-product .sh-title-container .sh-row-container { height: auto; padding: 8px; } #qsWidgetContainer176 .cdBankingDesignChanges .sh-row-product-title.sh-bank-name { font-size: 14px; font-weight: 400; margin-top: 8px; top: 182px; } #qsWidgetContainer176 img.logo-image { margin-left: auto; margin-right: auto; max-width: 200px; } #qsWidgetContainer176 .listing-title { font-size: 20px; font-weight: 600; } }Types of certificates of depositVarious CD types cater to different needs, such as:Brokered CDsare bought and sold via brokerage accounts rather than banks or credit unions. They are typically issued by banks and sold to brokerages, which offer them to customers at higher APYs compared to conventional CDs.Callable CDsinclude a call feature allowing the issuing financial institution to end the CD before its maturity. Upon such a call, investors retain their principal along with any accrued interest up to that point.Bump-up CDsallow you to request a higher APY if interest rates increase after you’ve opened your account. Generally, you can adjust the rate on your CD once or twice during its term.No-penalty CDsdo not impose penalties for withdrawing funds before maturity. They are less prevalent than other CD varieties and may also feature lower APYs compared to traditional CDs.Jumbo CDsusually require a minimum initial deposit of at least $100,000 but generally provide higher APYs than standard CDs.Variable-rate CDs offerchanging APYs that are indexed to prevailing interest rates. They carry higher risk compared to traditional CDs because a decrease in interest rates before maturity can lead to a lower yield.Series on daily CD rates created by former Fortune editor Cassie Bottorff. This edition has been updated by Editor, Evergreen Content Glen Luke Flanagan.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

You can earn up to 4.18% APY. Check out the best CD rates on Dec. 2, 2025
Personal Finance

You can earn up to 4.18% APY. Check out the best CD rates on Dec. 2, 2025

You can still earn a great return on a certificate of deposit, just don’t wait to deposit your money. As the Federal Reserve cut interest rates three times in 2024, average CD yields fell lower. They largely stabilized in 2025 as the Fed held off on more rate changes—but the central bank finally cuts in September and October, and another meeting still to happen this year, CD rates could conceivably decrease before the end of 2025.The best CD rates return up to 4.18% annual percentage yield. That means you could lock in high rates for years if you funded a certificate right now, depending on the term that’s best suited to your financial goals. Markets anticipate the possibility of one more more Fed rate cut this year, so there’s no time to waste.Check Out Our Daily Rates ReportsDiscover the highest high-yield savings rates, up to 5% for December 8, 2025.Discover the highest CD rates, up to 4.18% for December 8, 2025.Discover the current mortgage rates for December 8, 2025.Discover current refi mortgage rates report for December 8, 2025.Discover current ARM mortgage rates report for December 8, 2025.Discover the current price of gold for December 8, 2025.Discover the current price of silver for December 8, 2025.ADVERTISEMENTAdvertiser DisclosurePrivacy policyPowered byBest CD Rates for December 9, 2025ZIP Code Deposit Amount $Min. Term Length 6 months1 months6 months1 year18 months2 years3 yearsMax. Term Length 3 years6 months1 year18 months2 years3 years4 years5 years6 yearsFEATURED OFFERSAPYTERMMIN. DEPOSITEST. EARNINGSLoading...4.25 %December 9, 20252yr$ 1000$ 1063Over 1 Year2 years cd AccountUnited Fidelity BankMember FDICQUICK LOOK4.20 %December 2, 20256mo$ 1000$ 1050Over 1 Year6 Mo CD cd AccountLimelightBankMember FDICOFFER DETAILSQUICK LOOKLimelight Bank is the online division of Capital Community Bank. It offers competitive yields on CDs, but it doesn’t offer any other types of bank accounts.READ BANK REVIEW4.15 %December 2, 20259mo$ 500$ 1038Over 1 Year9 Mo CD cd AccountM.Y. Safra BankMember FDICOFFER DETAILSQUICK LOOKM.Y. Safra Bank is an FDIC-insured institution with just one branch in New York City and also offers strictly online accounts. It provides a full range of personal and business deposit products as well as loans and lines of credit. Its online-only CDs offer the most attractive rates the bank has to offer, but its savings and money market accounts also offer decent yields.READ BANK REVIEW12345...160The best CD rates on December 2, 2025: Earn up to 4.18%The highest CD rate of 4.18% is offered by Citibank on its three-month CD.Fortunemonitors the top rates offered by leading U.S. financial institutions to help readers obtain the best possible return on their CD investments. Here are the best CD rates available on the market:Pro tipLooking for the best CD to fit your investment needs? See rates from top institutions:–Wells Fargo–Capital One–Chase–Bank of America–Discover Bank–Northern Bank Direct–Ally Bank–Newtek Bank–Popular Direct–Citibank–Sallie Mae BankCompare CD rates at top national banksIf you’re unfamiliar with many of the bank names mentioned above, there’s a straightforward reason. CDs typically don’t generate substantial income for major financial institutions on their own.Large, national banks like Chase, PNC, and U.S. Bank focus on attracting customers through more profitable products, such as loans and credit cards, rather than CDs. As a result, the interest rates offered on CDs at these banks are often much lower than those available at smaller regional banks or online institutions. Additionally, to secure a good rate at these larger banks, you may be required to open other deposit accounts or deposit much higher minimums.CD rates news 2025Investors need to recognize that average CD rates rise and fall in close alignment with Federal Reserve monetary policy changes, specifically fluctuations in the fed funds rate. It’s crucial for those investing in CDs to monitor the central bank’s policy shifts to anticipate potential rate changes.Last year, the Fed cut the fed funds rate three times, leaving it at 4.25%-4.50% as of December 2024. High inflation from the post-pandemic period was cooling off, and the central bank tapered rates to help the economy stay on track. CD yields fell from two-decade highs as the Fed reduced rates.Those 20-year highs in CD yields were themselves a result of the Fed’s rate hike campaign of 2022 and 2023. Inflation gains were hotter than at any time since the early 1980s, thanks to the economic disruptions of the pandemic. Between March 2022 and July 2023, the Fed raised interest rates 11 times, from zero to 5.25%-5.50%, to help tamp down inflation.After holding pat on rate cuts for most of 2025, the Fed finally cut the federal funds rate to 4.00%-4.25% at its Sept. 16-17 meeting, then to 3.75%-4.00% when it met Oct. 28-29.The Federal Open Market Committee (FOMC) is set to meet once more this year, with the upcoming meeting slated for Dec. 9-10.Keep in mind that CD rates aren’t far from their recent peaks, and you still have the chance to lock in competitive rates on both short-term and long-term CDs. By contributing a larger lump sum to your CD investment, you can achieve considerable interest earnings.Historical CD ratesIn the early 1980s, CD rates soared into double digits, starkly contrasting rates in 2025. By 2019, however, the APY for a five-year CD was just above 3.00%.Throughout the early 2020s, top rates generally stayed below 1.00% APY. Recently, we saw a period of rising rates, with the best offerings exceeding 5.00% APY for 1-year CDs. These are beginning to fall slightly, but are still much higher than pre-pandemic times.How to get a good CD rateDetermining a “good” CD rate depends on balancing the highest rate with your ability to keep funds locked for the term. For example, a 5.00% APY CD over five years might not be ideal if you need liquidity sooner or if rates rise, leaving you with a lower return. Generally, rates above the national average are worthwhile. Compare rates across banks for your desired term to find the best option.Key factors to evaluate when comparing CDs include:Term length:Ensure it matches your savings goals and timeline.APY:Higher rates are usually offered for longer terms.Penalties:Understand the costs associated with early withdrawals.Minimum deposit:Ensure you meet the required minimum balance.Deposit insurance:Verify Federal Deposit Insurance Corp. (FDIC) or National Credit Union Administration (NCUA) coverage.Additionally, online banks typically offer higher interest rates—but check for any minimum balance requirements and associated fees. Opting for a bank rather than a broker might help avoid unnecessary fees.Look into offerings from online banksOnline banks and financial technology companies (fintechs) typically offer better rates than national banks. Large financial institutions generate revenue primarily through interest on loans, fees, and investments in securities.Alternatively, smaller banks and online fintech companies attract new customers by offering competitive APYs on deposit accounts. Additionally, online banks usually have lower overhead costs, enabling them to provide better rates to their clients.Set up a CD ladderCD ladders are ideal for savers reluctant to lock in their money for long periods of time. By splitting savings across CDs with varying maturities, you can enjoy both short-term access and higher long-term rates.For example, you could invest $3,000 in three staggered CDs (1-year, 2-year, and 3-year). As each CD matures, reinvest the money into a new 3-year CD. 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} #qsWidgetContainer176 .cdBankingDesignChanges .sh-first-product .sh-title-container { height: auto; min-height: 0; padding: 12px; } #qsWidgetContainer176 .sh-title { font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif; font-size: 20px; font-weight: 600; text-align: left; } #qsWidgetContainer176 .sh-fdic-insured .sh-text { color: #666 !important; } #qsWidgetContainer176 .sh-first-product .sh-btn__text, #qsWidgetContainer176 .sh-btn__text { border-radius: 0; border-color: #111; color: #111; font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif; font-weight: 600; line-height: 150%; height: auto; letter-spacing: .5px; padding: 12px 16px; } #qsWidgetContainer176 .sh-btn__text:hover { border-color: #666; color: #666; } #qsWidgetContainer176 .sh-row-sub-container span.sh-row-value { font-family: var(--graphik-compact), Graphik Compact, Arial Narrow, Helvetica neue Condensed, sans-serif !important; font-size: 16px !important; font-weight: 600 !important; letter-spacing: .5px !important; } @media only screen and (width: 768px) { #qsWidgetContainer176 .cdBankingDesignChanges .sh-row-product-title.sh-bank-name { position: relative; top: initial; } } @media only screen and (max-width: 767px) { #qsWidgetContainer176 .cdBankingDesignChanges .sh-first-product .sh-title-container { padding: 0; } #qsWidgetContainer176 .prop-conatiner:not(:first-child):before { height: 2px; left: 0; top: -12px; width: 100%; } #qsWidgetContainer176 .sh-row2-container { flex-basis: 100% !important; padding-bottom: 8px !important; } #qsWidgetContainer176 .sh-first-product .sh-title-container .sh-row-container { height: auto; padding: 8px; } #qsWidgetContainer176 .cdBankingDesignChanges .sh-row-product-title.sh-bank-name { font-size: 14px; font-weight: 400; margin-top: 8px; top: 182px; } #qsWidgetContainer176 img.logo-image { margin-left: auto; margin-right: auto; max-width: 200px; } #qsWidgetContainer176 .listing-title { font-size: 20px; font-weight: 600; } }Types of CDs you should know aboutDifferent types of CDs serve various needs:Brokered CDsare purchased and sold through brokerage accounts rather than directly from banks or credit unions. Brokered CDs typically offer higher APYs than traditional CDs because they are issued by banks and then sold to brokerages.Callable CDsinclude a call feature that allows the issuing institution to terminate the CD before its maturity date. If this feature is exercised, investors receive their principal and any accrued interest up to the call date.Bump-up CDsallow you to request a higher APY if interest rates rise after you’ve opened the account. You can usually adjust the rate once or twice during the CD’s term.No-penalty CDsdo not impose penalties for early withdrawals before maturity. This type is less common and may offer lower APYs than traditional CDs.Jumbo CDsrequire a minimum initial deposit, often starting at $100,000 or more. They generally offer higher APYs than standard CDs.Variable-rate CDshave an APY that changes in response to prevailing interest rates. These CDs carry more risk than traditional CDs because decreasing interest rates before maturity can lead to a lower yield.Series on daily CD rates created by former Fortune editor Cassie Bottorff. This edition has been updated by Editor, Evergreen Content Glen Luke Flanagan.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

Home equity loan vs. home equity line of credit (HELOC)
Personal Finance

Home equity loan vs. home equity line of credit (HELOC)

When you find yourself in need of a large sum of money—whether for an emergency medical expense, a home improvement project, or any other big life expense—you probably start researching the best loan option for your unique situation. In particular, if you’re a homeowner, you might consider tapping into your home equity with either a home equity loan or a home equity line of credit (HELOC). But which is the better choice?Borrowing against your home equity can be a cost-effective way to get the funds you need, with the potential for favorable interest rates and flexible repayment terms. It can also come with a serious risk, as you’re putting your house up as collateral, meaning you could lose it if you default on repayment.We’ll walk you through these two ways of tapping your equity, with one being a form of installment credit and the other being a revolving line of credit somewhat similar to a credit card.What is a home equity loan?Think of a home equity loan as something like a secured personal loan. It’s a way to borrow from the value you’ve built in your home as you pay down your mortgage. The money you receive from a home equity loan is backed by your property—so if you don’t pay off your loan, the lender may sell your house to recoup the balance you owe.When you take out a home equity loan, you’ll receive a lump sum deposited into your bank account. You can use it for nearly anything, similar to a personal loan. You’ll be set up on a payment plan of equal monthly installments until your loan (plus interest) is repaid. You may get up to 30 years to repay your loan.There are key differences between a differences between a personal loan and a home equity loan, however. Home equity loans allow you to borrow potentially more than a typical personal loan, which is often capped at $100,000. Depending on the amount of equity you’ve built, a home equity loan might offer hundreds of thousands of dollars in borrowing power. The interest rate can often be lower than many other types of loans, too.That said, a home equity loan can be costly to open. Some lenders charge for things like origination fees, credit report fees, title search fees, and more.Pros and cons of a home equity loanN/AProsAPR is fixed for the duration of your loanPredictable monthly paymentsTypically slightly lower APR than a HELOCConsYou’ll pay interest on the full borrowed amount (whether you use it immediately or not)You may lose your home if you fail to pay off your loanLowers your home equity until repaidWhat is a HELOC? A home equity line of credit is similar to a traditional home equity loan in that you’re borrowing from your property’s equity. You can likely enjoy competitive APR and a potentially higher borrowing amount when compared to a standard personal loan—but default on your loan, and you could lose your home.The big difference between a home equity loan and a HELOC is the way you can spend your money. Instead of an upfront lump sum deposited into your account, your funds are delivered in the form of a revolving credit line (similar to a credit card, in that you borrow as needed rather than all at once). You’ll only be charged interest on the portion of your credit line that you actually use.A HELOC is comprised of a “draw” period and a “repayment” period. The draw period begins when you take out your loan and can last up to 10 years. During this time, you can borrow and repay essentially as you please. When this period closes, the repayment period begins. You can no longer use your credit line, and you’re required to repay it back—either all at once or through a monthly installment plan. Similar to a home equity loan, the repayment period can last decades.It’s also worth noting that you may be able to refinance your HELOC to regain access to your line of credit.Expect similar closing costs whether opening a HELOC or a home equity loan, from appraisal fees to origination fees.Pros and cons of a HELOCN/AProsRevolving credit structure lets you reuse this financing method multiple timesYou’ll only pay interest on the funds you useInitial interest-only payments keep upfront costs lowConsYou may lose your home if you fail to pay off your loanInterest rates are typically variableLowers your home equity until repaidRequirements to borrow from your home equityTo qualify for either a home equity loan or a HELOC, you’ll have to:Be a homeownerHave considerable equity your homeEquity is the value of your property minus the amount you owe on your mortgage. Lenders commonly require you to keep between 15% and 20% equity in your home. In other words, you can generally borrow anything above that number.For example, if your home is worth $350,000 and you owe $200,000 on your mortgage, you’ve got $150,000 in equity—or 43% ($150,000 in equity / $350,0000 total value). If you’re required to keep 20% equity in your home, you could borrow up to 23% of your equity.Beyond this stipulation, lenders also look for a good credit profile, proof of income and employment, and reasonable debt-to-income ratio, preferably below 40%.How to decide between a home equity loan and a HELOCSo, you’ve decided that borrowing from your home equity is the best strategy to fund your large upcoming purchases. If you’re still unsure which is best, ask yourself the following questions.What do you need the money for?If you need money for a single large purchase, a home equity loan may be the way to go. Its repayment terms are straightforward and its APR is predictable. A HELOC may be better if you don’t need all the money immediately but you plan to use it incrementally, as you’ll only be charged interest for the money you’re currently using (instead of the entire loan amount).Will you use the funds for ongoing spending?If you plan to access your equity multiple times, a HELOC is the clear winner. Again, you can use it similar to a credit card—but without the eye-watering APR. It’s also handy to keep simply as an emergency fund.Do you want a fixed APR?While it’s possible to receive fixed interest rates for a portion of your HELOC, this loan type is typically subject to variable APR. Depending on market conditions and Fed decisions, that can be a good thing or a bad thing.Either way, your interest with a HELOC is generally less predictable than with a home equity loan with interest rates that are locked in upon account opening.How much equity do you have?If you don’t have much equity, a home equity loan may not be the optimal choice. A more strategic option may be opening a HELOC, as it allows you to borrow from the same credit line as often as you pay it back. This allows you to effectively borrow more than your equity—just not all at once.For example, you may want to finance your $50,000 home renovation with equity. If you’ve only got $10,000 in equity, a home equity loan won’t cover your needs. But with a HELOC, you can buy your materials and/or pay for labor $10,000 at a time. When you pay down your balance, you’ll be able to borrow from your equity again.Other ways to finance a purchaseA home equity loan and a HELOC are just two options to finance your large purchases. Other popular choices include:Buy Now Pay Later (BNPL) services.Some purchases qualify for BNPL options which split an expense into multiple interest-free transactions.Credit cards.These are ideal for everyday purchases you can pay off in full promptly but generally a bad option for funding large expenses that will take months to pay off. The APR is often high—though some credit cards come with an initial interest-free window which can give you a year or even nearly two to pay off your balance without paying interest.Borrow money from friends or family.If you’ve got the implicit trust of those close to you, borrowing money can be the easiest and cheapest way to fund a large purchase. But, make sure to outline clear terms for the repayment and stick to the agreement, otherwise you risk damaging these relationships.The takeawayA home equity loan and a home equity line of credit are similar in many ways, from associated costs to borrowing amounts to repercussions of failing to pay back your loan. The key difference is in how you access the funds.A home equity loan deposits a large sum into your bank account and enrolls you in equal monthly installments until your loan is repaid. A HELOC gives you a revolving credit line from which you can borrow and repay over and over again.Frequently asked questionsIs a home equity loan a second mortgage?Yes, a home equity loan is a second mortgage. Taking out a home equity loan means you’ll now have a monthly mortgage payment and a monthly loan payment.Which is better for a large one-time expense: HELOC or home equity loan?A home equity loan is generally better for a large one-time expense, as its interest rates are fixed and its repayment terms are predictable.Can my monthly payment change with a home equity loan?Your monthly payment cannot change a home equity loan. When you open your account, you’ll be enrolled in fixed equal monthly installments until your loan is paid off.How much equity do I need to qualify for a HELOC?To qualify for a HELOC or home equity loan, you typically need more than 15% to 20% equity in your home. This is because most lenders require that you keep at least that much equity in your property at all times.Do I need an appraisal for a home equity loan or HELOC?Yes, you generally need an appraisal for a home equity loan or HELOC so the lender knows how much money to extend to you.

Should I buy a $75,000 Tundra with my $100,000 salary and $60,000 in savings?
Personal Finance

Should I buy a $75,000 Tundra with my $100,000 salary and $60,000 in savings?

Just because you make a six-figure annual income doesn’t mean you should blow it. Indeed, we’ve heard countless stories about high-earning folks who still manage to live paycheck to paycheck. Lifestyle creep, big splurges (perhaps to deal with being burnt out at the office), and a lack of budgeting are all factors to blame for high-earning individuals who can’t quite seem to get ahead financially.nextstayCCSettingsOffArabicChineseEnglishFrenchGermanHindiPortugueseSpanishFont ColorwhiteFont Opacity100%Font Size100%Font FamilyArialText ShadownoneBackground ColorblackBackground Opacity50%Window ColorblackWindow Opacity0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%200%175%150%125%100%75%50%ArialGeorgiaGaramondCourier NewTahomaTimes New RomanTrebuchet MSVerdanaNoneRaisedDepressedUniformDrop ShadowWhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%Indeed, on the social-media community (think Reddit), the group refers to themselves as HENRYs, which is a clever acronym for “high earner, not rich yet.” Undoubtedly, the group isn’t exclusive to six-figure earners who spend as much, if not more, money than what’s coming in. However, it’s not too uncommon to hear stories of big spenders who don’t feel rich despite making far more than the average American. Indeed, if you earn more, only to spend more, you’re not going to save enough to invest and build real wealth.-->-->Key PointsIf a new vehicle purchase will put one in debt, it’s time to rethink things.Those keen on vehicle ownership should look to the used car market so that one’s nest egg crushed.Millions of Americans keep making 5 basic mistakes with insurance and keep overpaying every year, sometimes by thousands of dollars. But, it’s easy to avoid if you know how. -->-->This individual makes a good income. But does that justify splurging on a new truck?In this piece, we’ll look at an all-too-common case involving an individual who’s making good money ($100,000 per year income), but is looking to blow their $60,000 savings (and a bit more) on a Toyota Tundra truck. Indeed, such new trucks do not come cheap. And while the individual’s vehicle recently died, I wouldn’t treat such a nasty occurrence as an opportunity to splurge.While the Toyota Tundra is a reliable performer that’s probably well worth the price of admission, depending on who you ask, I’d argue that it makes little financial sense to go further into debt (they’ve got around $3,000 in outstanding debt, which isn’t anything to be too concerned about, given their income).Indeed, there are better ways to go about replacing one’s old car. And buying a new truck, especially a fancy one, I think, is not the way to go. In this piece, we’ll look at options that could allow this individual to replace their vehicle without having to blow a huge hole where their savings would have been.At the end of the day, a $75,000 expense may not seem all too bad, given their high salary. However, given the tough labor market (layoffs have been happening left and right), I’d argue that it’s not a good idea to make a move that’d wipe out one’s emergency fund (that amounts to at least six months’ worth of living expenses). Sure, it’ll feel good to drive that new truck off the lot. But then, the bills will start mounting. It’s not just the sticker price of the vehicle, but insurance costs, fuel, parking and all the sort. These are phantom costs that can really sink an otherwise sound budget.In the case of this individual, though, the budget is anything but sound.Forget the new truck. Buy a used carTrucks are handy to have around, but they tend to be a heck of a lot pricier and harder on gas. If one is keen on a truck, a used truck could be a way to spend less than the $60,000 in savings. I think the sweet spot would be to spend less than $50,000. That’d leave over $10,000 in savings. Indeed, that’s still not enough of an emergency fund, but it’s better than going deeper into debt.If one is fine with a compact car, which tend to be worlds cheaper than a truck, I’d go down that route. Indeed, for around $25,000 in the used car market, one would have enough savings left over such that things wouldn’t get too horrid if a layoff were to strike unexpectedly. Given the pace of AI automation, I’d argue that having a fatter emergency fund (think a year) would be even more prudent.Is vehicle ownership even necessary?If possible, perhaps foregoing vehicle ownership altogether could help individual get back on track with their retirement savings. Indeed, ride-hailing may not be for everyone, but it’s a cheap way to go, especially for those who can’t afford a five-figure expense right off the bat.With the advent of self-driving vehicles, I’d argue the price of ride-hailing is bound to move lower over the next five to eight years. Indeed, perhaps a nice middle ground would be to postpone one’s used vehicle purchase until the savings are lofty enough such that a purchase wouldn’t leave one without an emergency fund. I’d say wait until the savings are at least $100,000 before getting back on the market. Sure, the car may have just died, but given where the financial situation is, I’d still argue it’s not a good time.Most Americans Overpay Without Realizing ItCar insurance is one of those monthly bills most Americans pay without a second thought. But the truth is, millions of drivers are overpaying simply because the haven’t bothered to get updated rates.But there are dozens of easy ways to lower your rates. If you’re a safe driver, have moved in the last few years, if you’re a safe driver, or forgot to check about bundling you’re leaving free money on the table.I was able to save $530 on my insurance, simply by applying to new providers with updated information. And it only took a few minutes!👇 Use the form at the bottom of this article to see if another provider can lower your bill without sacrificing coverage.👇

I Regret Financing My New Car – What Are My Options for Managing Payments?
Personal Finance

I Regret Financing My New Car – What Are My Options for Managing Payments?

-->Key PointsA Redditor going to college was convinced to take out a large car loan.He’s regretting taking the loan, and wants to know what options he has.Selling the car, refinancing the debt, or finding a job to pay for the loan are going to be his best and only choices.Millions of Americans keep making 5 basic mistakes with insurance and keep overpaying every year, sometimes by thousands of dollars. But, it’s easy to avoid if you know how. -->-->Many people who buy cars finance their new vehicles. In fact, Experian reports that the average monthly payment on a used car is $521 while the average monthly payment on a new car is a shocking $745. Borrowers are also financing their cars for a long time, with Experian indicating that the average loan term for a new car was 68.63 months and the average loan term for a used vehicle was 67.2 months. nextstayCCSettingsOffArabicChineseEnglishFrenchGermanHindiPortugueseSpanishFont ColorwhiteFont Opacity100%Font Size100%Font FamilyArialText ShadownoneBackground ColorblackBackground Opacity50%Window ColorblackWindow Opacity0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%200%175%150%125%100%75%50%ArialGeorgiaGaramondCourier NewTahomaTimes New RomanTrebuchet MSVerdanaNoneRaisedDepressedUniformDrop ShadowWhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%That’s a long time to commit to paying a lot of money, and those who finance could be left with regrets.In fact, this happened recently to one Reddit user. The poster explained he followed some advice that he now regrets, and he’s wondering if he has options to deal with the situation he’s found himself in.  Here’s how a Redditor got stuck with a car he can’t affordThe original poster (OP) explained that he lives in rural Alberta and will soon be starting college. His mother and others convinced him to finance a 2024 Kia Forte, despite the fact that he wanted to buy something cheaper that he could afford to pay cash for. The car had a price tag of $25,000, but the dealer convinced him to add another $10,000 to cover a “protective coating” on both the interior and exterior of the vehicle.With a $10,000 down payment, the OP is now looking at making biweekly payments of $231 for the next five years. Since he recently moved out to live on his own and he’s going to school full-time, he is very worried he’ll be unable to keep up with the payments.He explained that he “feels stupid,” and said that he is just 18 years old and worried about the impact this car will have on his financial future.What can the OP do to deal with the difficult situation?Unfortunately, the poster is in a really tough spot here, and he followed really terrible advice. He was spot-on when he thought he should buy an affordable car with cash, and he should never have listened to his mother about getting the loan.Sadly, now he has very few good options. The OP should first look at his paperwork to see exactly what he paid for regarding the protective coating. If any part of that money went to cover a warranty that he can cancel, he should do so immediately to try to recover at least some of the wasted funds. He should also talk to the dealer and ask for a partial refund on the coating, which he says is now peeling.Unfortunately, that’s not going to solve the bigger problem, which is that he’s committed to monthly payments he can’t afford.Since it was his mother’s idea to buy the car, he can see if she’ll help — but unless she’s making a reliable commitment to cover the paymentandhe trusts her to follow through, he’ll have to find a way to afford to pay the bills himself so he doesn’t ruin his credit and end up with the car getting repossessed.This may mean getting a part-time job, living on a very strict budget, and perhaps even continuing to live at home a little longer so he can afford the payments with the income he earns. If his interest rate is high, refinancing the car loan to a lower one could help him as well, especially if his mom is willing to cosign to help him get a better rate, since the car loan was her idea in the first place. Alternatively, the OPcouldpotentially try to sell the car to get out from under the payments. He will almost assuredly lose money on this deal, but since he put $10,000 down on the car, hemayhave enough equity in it that he could sell it for enough to repay the loan. If he can do that, this may be the best solution, so he’s not stuck with five years of interest charges and payments that are going to cause a constant struggle. He probably won’t have anything left over for another car, though, so will have to save up to buy one or take public transportation.Going forward, the OP also needs to make absolutely sure he is not listening to his mother, who appears to be giving very bad financial advice. He needs to commit to living within his means and, if necessary, get advice from an experienced financial advisor who will not tell a broke college kid with no job prospects to commit to a huge debt. Most Americans Overpay Without Realizing ItCar insurance is one of those monthly bills most Americans pay without a second thought. But the truth is, millions of drivers are overpaying simply because the haven’t bothered to get updated rates.But there are dozens of easy ways to lower your rates. If you’re a safe driver, have moved in the last few years, if you’re a safe driver, or forgot to check about bundling you’re leaving free money on the table.I was able to save $530 on my insurance, simply by applying to new providers with updated information. And it only took a few minutes!👇 Use the form at the bottom of this article to see if another provider can lower your bill without sacrificing coverage.👇

With $90,460 in Debt, What Is The Realistic Path Out?
Personal Finance

With $90,460 in Debt, What Is The Realistic Path Out?

No matter how you cut it, debt is a very real part of our world, as much as we try to live on a budget. According to a recent CNBC study, the average American has approximately $90,460 in debt, which seems impossible to escape.nextstayCCSettingsOffArabicChineseEnglishFrenchGermanHindiPortugueseSpanishFont ColorwhiteFont Opacity100%Font Size100%Font FamilyArialText ShadownoneBackground ColorblackBackground Opacity50%Window ColorblackWindow Opacity0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%200%175%150%125%100%75%50%ArialGeorgiaGaramondCourier NewTahomaTimes New RomanTrebuchet MSVerdanaNoneRaisedDepressedUniformDrop ShadowWhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%-->-->Key PointsThe hope for most young people is that they can live debt-free, but it’s getting harder and harder to do so.In this individual Redditor’s case, they are finding themselves struggling with an oversized car payment and credit card debt.The single most important thing is to set and live with a substantial budget that accounts for every dollar.It sounds nuts, but SoFi is giving new active invest users up to $1k in stock, see for yourself (Sponsor)-->-->This is precisely how one Redditor feels based on a post they put up in r/personalfinance. Indicating that they feel like they are drowning in debt, this individual doesn’t know what to do, and whether regaining control of their finances will ever be possible again.Drowning in Debt In 2025Kicking things off, this Redditor is listing off her monthly fixed costs, which include rent at $1,250, a car payment of $568 per month, and car insurance that’s approximately $150 per month. As of the middle of August 2025, she was also facing credit card debt, with balances of $2,056 on her Apple Card, $1,700 on her Bank of America card, $4,500 on Citibank, and another $700 balance on a Discover card.While these numbers might not seem like a lot, for someone who is 23 years old and working as a bartender making between $3,000 and $6,000 monthly, they feel like they are drowning. There is also no help being received from anyone (e.g., parents), so the Redditor is responsible for all bills and emergency expenses that come up.On the plus side, this is good news, having moved out to live with roommates and no longer having to help out with her mom financially.Credit Karma to the RescueThis said, she has already gone through Credit Karma to refinance her vehicle, which helped her reduce the monthly payment to $411 for the car at 5.24% for 60 months. This is a big drop from her previous 9% interest at 75 months, but the $150 savings is already feeling more freeing.How to Develop Good Spending HabitsWhether you’re in your 20s like this Redditor or someone much older, it’s never too late to develop good spending habits. You’re going to start by creating good budgeting habits, which means meticulously tracking your cash flow.Build Your BudgetThis means being able to account for every dollar that comes in and every dollar that goes out. How this Redditor or someone else creates a budget is up to them, as using a piece of paper or a spreadsheet is not crucial.What does matter is that you know exactly how much you are spending on everything, so you can visualize where you can save and how you can create some extra cash flow. Make a list of everything you’re spending money on, like a car and car insurance, gas, groceries, cell phone bill, utilities, health insurance, and everything else, so it’s all visualized, including streaming services, which the Redditor smartly indicates she might be getting rid of.In other words, this needs to be a FULL budget as other Redditors point out, so nothing is missing from the equation.Pay Down DebtIn the case of this Redditor and anyone else in a similar position, once you have a firm grasp on your budget, it’s time to start paying down debt. While a car note isn’t considered bad debt, the credit card balances this Redditor has must be reduced before she does any non-emergency spending.Ideally, she could look at getting a credit card that has zero-interest for 15 months or so to consolidate her highest-rate cards or all of them into one card if she can. While it’s not going to be fun, paying off debt has to be her highest priority.This Redditor is a prime candidate for the snowball method, by paying off the smallest debt first, like her Discover card. Once this card is paid off, she should take the amount being paid to Discover and add it to the next highest balance, the Bank of America card, and so on until every card is paid off.Don’t Ignore Any OptionJust as this Redditor did with Credit Karma by refinancing her car loan, this is a prime example of what everyone in a similar debt situation should do. The hope is that you can find help from either your credit card company, a mortgage company that might help you refinance, or even consider moving to a different, less expensive place.The most important financial lesson here is that you shouldn’t ignore any option that might be on the table, including seeking financial counseling. There are plenty of local resources where most people live that are willing to help young adults establish good financial habits.Want Up To $1,000? SoFi Is Giving New Active Invest Users up to $1k in StockLooking to grow your money but unsure where to begin? SoFi Active Invest is offering a limited-time promotion—open an account, fund it with $50 or more, and you could receive up to $1,000 in complimentary stock for Active Invest accounts.From $0 commission trading to fractional shares and automated investing, this app is designed to simplify investing for everyone, whether you’re just starting or already experienced. Its easy to sign up and secure your bonus.(sponsor)DISCLOSURE:INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUEBrokerage and Active investing products offered through SoFi Securities LLC, member FINRA(www.finra.org)/SIPC(www.sipc.org).Advisory services are offered by SoFi Wealth LLC, an SEC-registered investment adviser. Information about SoFi Wealth’s advisory operations, services, and fees is set forth in SoFi Wealth’s current Form ADV Part 2 (Brochure), a copy of which is available upon request and at www.adviserinfo.sec.gov.Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 30 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify.Other fees, such as exchange fees, may apply. Please view our fee disclosure to view a full listing of fees.Investing in alternative investments and/or strategies may not be suitable for all investors and involves unique risks, including the risk of loss. An investor should consider their individual circumstances and any investment information, such as a prospectus, prior to investing. Interval Funds are illiquid instruments, the ability to trade on your timeline may be restricted. Brokerage and Active investing products offered through SoFi Securities LLC, Member FINRA(www.finra.org) /SIPC(www.sipc.org).There are limitations with fractional shares to consider before investing. During market hours fractional share orders are transmitted immediately in the order received. There may be system delays from receipt of your order until execution and market conditions may adversely impact execution prices. Outside of market hours orders are received on a not held basis and will be aggregated for each security then executed in the morning trade window of the next business day at market open. Share will be delivered at an average price received for executing the securities through a single batched order. Fractional shares may not be transferred to another firm. Fractional shares will be sold when a transfer or closure request is initiated. Please consider that selling securities is a taxable event.Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire investment Before trading options please review the Characteristics and Risks of Standardized Options [HYPERLINK: https://www.theocc.com/getmedia/a151a9ae-d784-4a15-bdeb-23a029f50b70/riskstoc.pdfInvesting in an Initial Public Offering (IPO) involves substantial risk, including the risk of loss. Further, there are a variety of risk factors to consider when investing in an IPO, including but not limited to, unproven management, significant debt, and lack of operating history. For a comprehensive discussion of these risks please refer to SoFi Securities’ IPO Risk Disclosure Statement [HYPERLINK https://www.sofi.com/iporisk/]. This should not be considered a recommendation to participate in IPOs and investors should carefully read the offering prospectus to determine whether an offering is consistent with their investment objectives, risk tolerance, and financial situation. New offerings generally have high demand and there are a limited number of shares available for distribution to participants. Many customers may not be allocated shares and share allocations may be significantly smaller than the shares requested in the customer’s initial offer (Indication of Interest). For more information on the allocation process please visit IPO Allocation [HYPERLINK https://support.sofi.com/hc/en-us/articles/360058602892-How-does-SoFi-allocate-IPO-shares].

Best checking account bonuses for December 2025
Personal Finance

Best checking account bonuses for December 2025

Key TakeawaysTop checking account bonuses in December 2025 can earn new customers between $250 and $400, with leading offers from banks like Capital One, TD Bank, and Fifth Third Bank.To qualify for these bonuses, you typically need to open a new account, set up direct deposits that meet minimum thresholds, and keep the account open for specified period requirements and bonus amounts vary by bank.These bonus offers are typically limited-time promotions, so acting quickly and carefully reviewing eligibility terms is essential to maximize your bonus opportunity.Your checking account is like the cardio portion of your finances. Of all the ways you use your money, this account is likely the one you use to get your paycheck, pay your bills, withdraw money from the ATM and so on. It makes sense to ensure your most active account is working in your favor. Although moving bank accounts might rank up there with burpees and planks, it pays to make sure you’re using the checking account that best suits your needs. And if you’re shopping around for a new checking account, you could supercharge your cash on hand by choosing one that offers a bonus to new customers. We analyzed the available options to put together a list of our favorite checking account bonus currently available. Keep in mind that to earn these bonuses, you’ll generally have to meet certain requirements, such as committing to direct deposits or carrying an average daily balance And, typically there are restrictions disqualifying existing or recent customers, too. Still, with cash bonuses like these, working those money moves can pay off.Editor’s Picks: Best checking account bonuses of December 2025Bank and account(s)Max bonus amountDirect deposit requirementOffer good throughLearn morePNC Virtual Wallet with Performance Select$400$5,000December 8, 2025View offerat MoneyLionFifth Third Momentum Checking$300$500 +January 7, 2026View offerat MoneyLionSoFi® Checking and Savings (Member FDIC)$50 or $300 (depending on direct deposit amount)1$5,000 balance required to earn APYJanuary 31, 2026View offerat SoFiChase Total Checking$300$500+January 21, 2026View offerat MoneyLionCapital One 360 Checking$250$1,000+OngoingView offerat MoneyLionPNC Virtual Wallet with Performance SelectView offerat MoneyLionMax bonus amount$400Direct deposit requirement$5,000Offer good throughDecember 8, 2025Fifth Third Momentum CheckingView offerat MoneyLionMax bonus amount$300Direct deposit requirement$500 +Offer good throughJanuary 7, 2026SoFi® Checking and Savings (Member FDIC)View offerat SoFiMax bonus amount$50 or $300 (depending on direct deposit amount)1Direct deposit requirement$5,000 balance required to earn APYOffer good throughJanuary 31, 2026Chase Total CheckingView offerat MoneyLionMax bonus amount$300Direct deposit requirement$500+Offer good throughJanuary 21, 2026Capital One 360 CheckingView offerat MoneyLionMax bonus amount$250Direct deposit requirement$1,000+Offer good throughOngoingDetails accurate as of Dec. 3, 2025.#qsWidgetContainer174, #qsWidgetContainer174 [data-widget-id] { background-color: transparent; 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font-size: 20px; font-weight: 600; text-align: left; } #qsWidgetContainer174 .sh-fdic-insured .sh-text { color: #666 !important; } #qsWidgetContainer174 .sh-first-product .sh-btn__text, #qsWidgetContainer174 .sh-btn__text { border-radius: 0; border-color: #111; color: #111; font-family: var(--graphik-cond),Graphik Cond,Arial Narrow,Helvetica neue Condensed,sans-serif; font-weight: 600; line-height: 150%; height: auto; letter-spacing: .5px; padding: 12px 16px; } #qsWidgetContainer174 .sh-btn__text:hover { border-color: #666; color: #666; } #qsWidgetContainer174 .sh-row-sub-container span.sh-row-value { font-family: var(--graphik-compact), Graphik Compact, Arial Narrow, Helvetica neue Condensed, sans-serif !important; font-size: 16px !important; font-weight: 600 !important; letter-spacing: .5px !important; } @media only screen and (width: 768px) { #qsWidgetContainer174 .cdBankingDesignChanges .sh-row-product-title.sh-bank-name { position: relative; top: initial; } } @media only screen and (max-width: 767px) { #qsWidgetContainer174 .cdBankingDesignChanges .sh-first-product .sh-title-container { padding: 0; } #qsWidgetContainer174 .prop-conatiner:not(:first-child):before { height: 2px; left: 0; top: -12px; width: 100%; } #qsWidgetContainer174 .sh-row2-container { flex-basis: 100% !important; padding-bottom: 8px !important; } #qsWidgetContainer174 .sh-first-product .sh-title-container .sh-row-container { height: auto; padding: 8px; } #qsWidgetContainer174 .cdBankingDesignChanges .sh-row-product-title.sh-bank-name { font-size: 14px; font-weight: 400; margin-top: 8px; top: 182px; } #qsWidgetContainer174 img.logo-image { margin-left: auto; margin-right: auto; max-width: 200px; } #qsWidgetContainer174 .listing-title { font-size: 20px; font-weight: 600; } }Find the best checking account bonus offer for youPNC Virtual Wallet with Performance Select: Up to $400 bonusPNC Bank: Virtual Wallet with Performance SelectMax bonus amount$400Direct deposit requirement$5,000+Offer good throughDecember 8, 2025View offerat MoneyLionCompany insightsYear Founded: 1865Company Headquarters: Pittsburgh, PACEO: Bill DemchakFortune Rankings#131on the 2025 Fortune 500 list#71on Fortune’s 2025 America’s Most Innovative Companies listHonorable mentionon Fortune’s 2025 World’s Most Admired Companies list#32on Fortune’s 2024 Financial Sector Leaders list.Why we like this bonusAt the time of writing, the PNC Virtual Wallet with Performance Select account offers the most generous bonus featured in our top picks. We think savvy consumers looking for a new checking account will jump at the chance to earn $400 in their new account. Like the SoFi offer featured later in this article, you’ll have to allocate $5,000 or more in qualifying direct deposits to your new PNC Bank account in order to earn the maximum welcome bonus of $400 —but PNC allows a full 60 days to do so.What you should knowOnce the qualifying activity is met, PNC Bank will issue the bonus within 60 to 90 days. During this waiting period, you’ll want to leave your $5,000 right where it sits. Otherwise, you’ll be charged a monthly maintenance fee of $25 .Also, a caveat is that this offer may be limited depending on where you live; account disclosures state that the offer is “contingent on product availability and may vary based on…the ZIP code of your primary address.”Offer details reviewed on Dec. 3, 2025.Learn more: Read our full review of PNC Bank.Fifth Third Momentum Checking: Up to $300Fifth Third: Momentum CheckingMax bonus amount$300Direct deposit requirement$500 +Offer good throughJanuary 7, 2026View offerat MoneyLionCompany insightsYear Founded: 1858Company Headquarters: Cincinnati, OHCEO: Tim SpenceFortune Rankings#320on the 2025 Fortune 500 list#231on Fortune’s 2025 America’s Most Innovative Companies listHonorable mentionon Fortune’s 2025 World’s Most Admired Companies listWhy we like this bonusWith a much lower direct deposit requirement and a longer time frame to complete it—$500 within 90 days—this $300 bonus offer from Fifth Third is likely more accessible to many consumers than those from SoFi or PNC Bank.Plus, with payout occuring 10 business days after meeting requirements, this account offers one of the faster bonus timelines on our list. Finally, there are no monthly fees or overdraft charges on this account, and you’re not required to keep a minimum deposit to leave it open.What you should knowIf you’re currently a primary or joint account owner on a Fifth Third checking account, or you were on an account that was closed in the past 13 months, you can’t get this bonus.Also, if you’re someone who prefers to have physical bank branches available, know that Fifth Third only has locations in the following 11 states at the time of writing:FloridaGeorgiaIllinoisIndianaKentuckyMichiganNorth CarolinaOhioSouth CarolinaTennesseeWest VirginiaOffer details reviewed on Dec. 3, 2025.SoFi Checking and Savings: $50 or $300 bonusSoFi Checking & SavingsMember FDICMax bonus amount$50 or $300 * (depending on direct deposit amount)Direct deposit requirement$5,000 balance required to earn APYOffer good throughJan. 31, 2026Advertiser DisclosureView offerat SoFiCompany insightsYear Founded: 2011Company Headquarters: San Francisco, CACEO: Anthony NotoBonus DisclaimerNew and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not receiveda cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.60% annual percentage yield (APY) on savings balances (including Vaults)and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.60% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% 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 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.Why we like this bonusIf you’re seeking an institution to store your money on an ongoing basis, rather than merely to earn a quick buck, we expect you’ll like pairing your checking account with a high-yield savings account at SoFi—offering a high APY of up to 3.60%2.The bonus payout timeline is seven business days after the 25-day direct deposit bonus period (which begins when your first direct deposit arrives in the account) ends.Earn an even higher APY for a limited timeNew customers who open both a checking and saving account with SoFi, member FDIC—along with enrolling in SoFi Plus—by Jan. 31, 2026 have an opportunity to earn a 4.30% annual percentage yield (APY) on their savings. This represents a 0.70% APY boost on top the standard up to 3.60%% rate. The maximum time period for the boosted APY is six months. (Terms apply. Rates are variable and subject to change.)3SoFi Plus is available at no extra cost for customers with eligible direct deposit. Otherwise, the cost of membership is $10 per month as of this writing.Benefits for Plus members include a 10% boost on cash-back rewards earned with certain SoFi credit cards, a 1% match on recurring deposits to SoFi Invest (paid in rewards points) and unlimited one-on-one planning sessions from SoFi Wealth.What you should knowKnow that SoFi has some strict requirements to earn the maximum. Hopeful applicants must be able to direct deposit $5,000 from qualifying sources such as a paycheck or social security. On top of that, the deposits must hit the account fairly quickly: From the day the first direct deposit hits, you only have another 25 days to meet the $5,000 threshold. Applicants who can’t meet this threshold but still manage to direct deposit over $1,000 will get a paltry $50 reward.Offer details reviewed on Dec. 3, 2025.Chase Total Checking: Up to $300 bonusChase Bank: Chase Total CheckingMax bonus amount$300Direct deposit requirement$500+Offer good throughJanuary 21, 2026View offerat MoneyLionCompany insightsYear Founded: 1871Company Headquarters: New York City, NYCEO: Jamie DimonFortune Rankings#11on the 2025 Fortune 500 list#17on Fortune’s 2025 America’s Most Innovative Companies list#21on Fortune’s 2024 Global 500 list#7on Fortune’s 2025 World’s Most Admired Companies list#2on Fortune’s 2024 Financial Sector Leaders list.#33on Fortune’s 2023 Change the World list.Why we like this bonusIf you’re looking for a quick and easy win, Chase Total Checking is a great option. All it takes is a $500 direct deposit, and you can earn $300—nearly doubling your money with very little effort. And with a 15-day payout timeline after qualifying, Chase doesn’t make you wait too long for your bonus, either.What you should knowOne factor you should keep a close eye on is the account’s minimum balance requirement: You’ll need to keep at least $1,500 in here to avoid a monthly fee.Also, if you’re looking to maximize your earnings rather than just score a bonus immediately, bear in mind that Chase sometimes offers a bundled bonus of up to $900 for customers who open both a checking and a savings account.Offer details reviewed on Dec. 3, 2025.Learn more:Check out our full review of Chase Bank and our roundup of Chase CD ratesCapital One 360 Checking: Up to $250 bonusCapital One: 360 CheckingMax bonus amount$250Direct deposit requirement$1,000+Offer good throughOngoingView offerat MoneyLionCompany insightsYear Founded: 1994Company Headquarters: McLean, VACEO: Richard FairbankFortune Rankings#82on the 2025 Fortune 500 list#15on Fortune’s 2025 America’s Most Innovative Companies listHonorable mentionon Fortune’s 2025 World’s Most Admired Companies list#20on Fortune’s 2024 Financial Sector Leaders list.#36on Fortune’s 2025 100 Best Companies to Work For list.#23on Fortune’s 2024 Best Large Workplaces for Parents list.#4on Fortune’s 2024 Best Large Workplaces in Financial Services and Insurance.#304on Fortune’s 2024 Global 500.#36on Fortune’s 2024 100 Best Large Workplaces for Millenials.#70on Fortune’s 2023 100 Best Large Workplaces for Women.Why we like this bonusThe Capital One 360 Checking offer is an ongoing deal that offers $250 to new customers. To earn the welcome bonus, set up at least two direct deposits of $500 or more to hit the account within 75 days of opening the account.With a cumulative requirement of at least $1,000 deposited, this isn’t the easiest bonus on our list. But we like that it’s continually available to new customers and that the timeline to qualify is more than two months long. What you should knowIt can take up to 60 days for this bonus to hit your checking account. But, there are no monthly fees or minimum balance requirements with 360 Checking, so you can relocate your funds if necessary.Offer details reviewed on Dec. 3, 2025.Learn more:Check out our full review of Capital One 360 and our roundup of Capital One 360 CD rates.Key facts about checking account bonuses Thebonuses are usually only available for a limited time.These offers are meant to be promotional, not ongoing, so most of the time, checking account bonus offers will have an expiration date.To earn a bonus, you have to meet certain  eligibility requirements.This can include receiving a certain number of direct deposits possibly for a certain amount each time,  making a minimum opening deposit, maintaining a minimum balance, or any combination of these plus other actions. Make sure you understand what’s required to earn any new account bonus offer.You’ll owe taxes on the bonus amount.A bonus on your bank account is considered interest, which means you’ll receive FORM 1099-INT from the bank that issued your bonus and you’ll have to report on your taxes for that year.The fine print matters.Make sure you understand not just the requirements for earning the bonus but if there are any exclusions that might disqualify you from earning it. For example, some bonuses are only available for new customers of a bank. So if you have a different account with an institution that you are considering opening a checking account with, you may not qualify for any bonus being offered.When is it a good idea to open a new account for a bonus?If you’re in the market for a new checking account, it can only sweeten the deal if the one that’s a fit for your needs offers an account opening bonus. Having more than one checking account can also be useful if you want to allocate funds for different purposes, such as one for living expenses and one for other expenses. How to choose the best checking accountThe right checking account for you is not going to be the same as for someone else. Any bonus that comes with opening a new checking account is one of several factors to consider. Here’s what to look for when deciding on a new checking account.Fees:Checking accounts often come with fees running the gamut from monthly fees to fees for additional checks to overdraft fees. There are checking accounts that don’t charge monthly fees but there may be some trade-offs. For example online-only banks typically offer accounts with no monthly fees but you lose the ability to bank in person. It’s worthwhile to compare these potential costs bfore opening a new account.Access to your funds.Once you have your money in a new checking account, you want to be able to use it when you need to. Aside from paper checks, make sure you understand the ATM access that comes with your account. If you tend to make frequent cash withdrawals, an account with widespread ATM availability and low to no withdrawal fees or limits should be high on your list of must-haves.Minimum balance requirements:Some banks require a minimum daily balance or a minimum monthly deposit amount to keep the account active, or waive monthly fees. Make sure that you can meet these requirements for any account you’re considering.Overdraft protection:Think of overdraft protection as insurance, you may not think it’s important but it can save you a bundle if you need it. If your budget is closer to paycheck-to-paycheck then flush with cash, overdraft protection can prevent you from expensive mishaps like bouncing checks and pricey overdraft fees.APY:Although many checking accounts earn little to no interest on your deposit, there are a handful of high-yield checking accounts available. If you already have a high-yield savings account, earning interest on your checking account may not be a priority, but if you’re torn between two similar accounts, earning interest on your money is never a bad idea.Bonus offers:You shouldn’t open an account solely for a bonus offer, but it can sweeten the deal when choosing your next account.Checking account alternativesWhile getting a bonus on a new checking account is always a nice perk, a checking account isn’t ideal for every situation. For example, many checking accounts offer no or below average APYs, so if earning interest on your money is your primary goal in opening a new bank account, another type of account will suit you better. Here are some options to consider:Checking accounts vs. savings accountsWhile these are the two most common types of accounts the average depositor holds, there are significant differences between the two. Checking accounts allow for frequent withdrawals but generally come with very low interest rates. As of February 2025, the average APY on an interest-bearing checking account was 0.07% APY according to the Federal Deposit Insurance Corporation.By contrast, savings accounts are best for depositing funds that you won’t need access to for a while. Many (but not all)  savings accounts place a limit on the number of withdrawals you can make from the account each month, but in return you’re likely to earn higher interest rates. The average APY on a savings account as of February 2025 was 0.41% APY, according to data from the FDIC.Checking accounts vs. money market accountsMoney market accounts are similar to checking accounts as they often come with debit cards or checkbooks, allowing you to withdraw funds easily when needed. However, unlike checking accounts, money market accounts, like savings accounts, may set limits on the number of withdrawals you can make per month. Additionally, money market accounts may have minimum balance requirements in order to open the account or earn at the highest APY rate.A money market account may be the best fit for account holders who want to earn a higher APY and have some (but not necessarily unlimited) access to their funds. However, if you’re looking for an account that supports your everyday spending and plan to have a separate high-yield savings account for growing your money, a standard checking account might be a better option.Checking accounts vs. certificates of deposit (CDs)Certificates of deposit, or CDs, are another form of long-term deposit account. But unlike savings accounts, which are liquid and the funds can be added to or withdrawn at any time,, a CD “locks up” your funds for a defined period of time depending on the term length you choose. At the end of that time, the CD “matures” which means you get back your deposit plus the interest earned. A CD is not an option for financial transactions like automated savings or paying bills as it’s really a one-and-done approach. You open the account with a one-time deposit and those funds remain untouched until the CD reaches maturity. ADVERTISEMENTAdvertiser DisclosurePrivacy policyPowered byThe best savings account rates from our partners for December 9, 2025Account Type Savings & MMAsSavings & MMAsMMAs OnlySavings OnlyZIP Code Deposit Amount $FEATURED OFFERSAPYMIN. BALANCE FOR APYEST. EARNINGSLoading...3.75 %December 9, 2025$ 100$ 938Over 1 YearSavings AccountCIT BankMember FDICPromoted Offer Earn up to $300 cash bonus with minimum deposit. Terms apply.OPEN ACCOUNTOFFER DETAILSQUICK LOOKCIT Bank is an online institution that offers competitive annual percentage yields (APYs) on its Savings Connect savings account. It also offers a checking account, a money market account and CDs. CIT Bank offers a competitive yield with its Savings Connect account. It also offers an assortment of CDs to choose from. But some of these CDs, such as the one-year term, weren’t paying a competitive yield during Bankrate’s review.READ BANK REVIEW4.35 %December 2, 2025$ 0$ 1088Over 1 YearSavings AccountNewtek BankMember FDICQUICK LOOK4.20 %December 9, 2025$ 0$ 1050Over 1 YearSavings AccountLendingClubMember FDICEarn our LevelUp rate with $250 in monthly deposits, plus no fees.OFFER DETAILSQUICK LOOKLendingClub Bank is an FDIC-insured online bank known as Radius Bank until it was acquired by LendingClub in February 2021. Consumers looking for an online bank that offers competitive yields, low fees and ample ATM access might consider LendingClub Bank a solid option.READ BANK REVIEW12345...67Frequently asked questions (FAQs)How do checking account bonuses work?Some financial institutions offer checking account bonuses to incentivize new customers to open an account, typically for a limited amount of time. Bonuses are generally cash deposited directly into your account after meeting a minimum balance requirement or direct deposit threshold.Do you pay taxes on bank account bonuses?Yes, bank bonuses count as taxable income. The IRS considers bonuses taxable interest and will likely send you a Form 1099-INT reporting interest payments and/or tax-exempt interest of $10 or more.Can I close a checking account after receiving a bonus?Many banks require you to keep your account open for a certain length of time after receiving a bonus. Closing your account before you reach that threshold could mean paying an account closure fee or forfeiting your bonus.Should I have both checking and savings accounts with the same bank?Having all of your financial accounts under one roof can be convenient and make it easier to manage your finances, but it isn’t necessary. It may benefit you to hold different accounts with different institutions to take advantage of the best rates and fees for each account type.Are checking accounts safe?As long as you open a checking account with a financial institution that is FDIC-insured or NCUA-insured, your deposits are protected up to $250,000 per depositor, per account ownership category, in case of bank failure.Is it important that a checking account has a high APY?A high APY isn’t necessary; however, it can help you grow your checking account balance over time. If you hope to boost your balance through earnings on interest, opting for an account with a higher APY can help speed things along.SoFi disclaimers1:New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus of either $50 (with at least $1,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period) OR $300 (with at least $5,000 total Eligible Direct Deposits received during the Direct Deposit Bonus Period). Cash bonus will be based on the total amount of Eligible Direct Deposit. If you have satisfied the Eligible Direct Deposit requirements but have not receiveda cash bonus in your Checking account, please contact us at 855-456-7634 with the details of your Eligible Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 1/31/2026. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Eligible Direct Deposit can earn 3.60% annual percentage yield (APY) on savings balances (including Vaults)and 0.50% APY on checking balances. There is no minimum Eligible Direct Deposit amount required to qualify for the 3.60% APY for savings (including Vaults). Members without Eligible Direct Deposit will earn 1.00% 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 11/12/25. There is no minimum balance requirement. Fees may reduce earnings. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.2:Annual percentage yield (APY) is variable and subject to change at any time. Rates are current as of 11/12/25. There is no minimum balance requirement. Fees may reduce earnings.Additional rates and information can be found at https://www.sofi.com/legal/banking-rate-sheet3 0.70% Savings APY BoostEarn up to 4.30% Annual Percentage Yield (APY) on SoFi Savings with a 0.70% APY Boost (added to the 3.60% APY as of 11/12/25) for up to 6 months. Enroll in SoFi Plus between 9/18/25 and 1/31/26. Rates variable, subject to change. Terms apply at sofi.com/sofi-plus SoFi Bank, N.A. Member FDIC.Fortune Brainstorm AIreturns to San Francisco Dec. 8–9 to convene the smartest people we know—technologists, entrepreneurs, Fortune Global 500 executives, investors, policymakers, and the brilliant minds in between—to explore and interrogate the most pressing questions about AI at another pivotal moment. Register here.

I Died. Here’s How I Want My Wife to Handle Our Finances
Personal Finance

I Died. Here’s How I Want My Wife to Handle Our Finances

It should go without saying that for any relationship, there is always the fear of the unknown, especially in the event one person dies suddenly and leaves the other trying to navigate life, including finances, without the direction of their better half.nextstayCCSettingsOffArabicChineseEnglishFrenchGermanHindiPortugueseSpanishFont ColorwhiteFont Opacity100%Font Size100%Font FamilyArialText ShadownoneBackground ColorblackBackground Opacity50%Window ColorblackWindow Opacity0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%200%175%150%125%100%75%50%ArialGeorgiaGaramondCourier NewTahomaTimes New RomanTrebuchet MSVerdanaNoneRaisedDepressedUniformDrop ShadowWhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%-->-->Key PointsFor this spouse, it’s important that his wife is prepared in the event of his untimely passing.One of the first things he needs to do is to go through the entire financial situation the family has right now.The Redditor should also instruct a lawyer to help in the event of his death.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; learn more here.(Sponsor)-->-->This is a sad but true reality for far too many people every year, and it has this Redditor thinking based on their post in r/personalfinance. As the individual responsible for household finances and income, this Redditor is worried about how to help his wife in the event of his untimely passing.I Am Dead. What Does My Wife Do Next?In this particular story, the Redditor is rightfully concerned about his situation, given that he handles the household finances, which includes being the sole provider, as well as being the one who handles all of the budgeting and investments, etc.The last thing he wants is for his wife to struggle down the road. The good news is that he has a “hefty” life insurance policy that would help the wife stay out of the workplace, at least for “many, many years.”All of this said, he does want to put together an “in case of my death, break open” kind of information packet to help guide her on what to do next. This would include, but is not limited to, instructions on filing the insurance claim, expectations for the claim amount, passwords for all accounts, and guidance on managing the family’s current investment portfolio.The Redditor came to r/personalfinance hoping to find some information from other individuals on this subreddit as to how they have handled something similar. Do they have a template they used that could be shared, or any advice on how they have handled something that’s pretty tough to talk about with a spouse and or children?The Best Steps to Take Right NowGet Her Involved in Finances As Soon As PossibleThe idea of getting the wife involved and aware of finances now could fit anywhere on this list, but it’s as essential as it gets. The Redditor doesn’t have to put her in charge of anything, but there is no reason she needs to remain uninformed about their current financial situation, the life insurance policy, etc. Also, give the lawyer a list of every important document she might need to help navigate everything, like birth certificates, etc.It’s really hard to emphasize just how important this advice is right now, and it’s one of the things I would tell someone I care about to emphasize most. If there isn’t a joint account, set one up right now, today, as you never know what can happen.Get Legal and Financial AdviceGiven that we are talking about at least some level of money that would help the wife avoid working for a while, talking to an estate attorney is the first place to start. Ensuring that all aspects of a will and/or a living will are in order should be the first step. Best of all, the lawyer can advise or direct the wife to a financial manager who can help navigate the process of filing the life insurance policy and managing the breakdown of all current investments.Setting up time with a financial planner will be critical in helping the wife navigate this sudden influx of financial responsibility. This individual can discuss with the wife how to manage her spending to maximize the longevity of the life insurance money and investment accounts. In fact, the couple should schedule a meeting with a financial manager together, ensuring they are both on the same page for the future and reducing potential stress.Set Up a Password ManagerFor the Redditor’s spouse, and this is something I have done, is to set up a password manager that contains information on how to access every single financial account. Better yet, don’t just add financial information here, but also include instructions on how to access email and contact a lawyer, as well as any other relevant details. Most password managers have a notes section, and the Redditor can instruct his wife to start there.Contact the Social Security AdministrationSomewhere in the Redditor’s notes, he needs to add a reminder to contact the Social Security Administration. Depending on the circumstances, the Redditor’s wife might be eligible for survivor benefits, and she also wants to be able to draw spousal benefits. It might be nothing, but it’s worth a phone call.If You’ve Been Thinking About Retirement, Pay Attention (sponsor)Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit Why wait? Start building the retirement you’ve always dreamed of.Get started today! (sponsor)

Why I Don’t Get the Hype Around SCHD – Is There More to This ETF Than Just $1 in Dividends?
Personal Finance

Why I Don’t Get the Hype Around SCHD – Is There More to This ETF Than Just $1 in Dividends?

TheSchwab US Dividend Equity ETF(NYSEARCA:SCHD) is one of the most well-known dividend ETFs. It has produced a 45% return over the past five years and boasts a 3.75% SEC yield. It also has a 0.06% expense ratio, so investors get to keep almost all of the gains. nextstayCCSettingsOffArabicChineseEnglishFrenchGermanHindiPortugueseSpanishFont ColorwhiteFont Opacity100%Font Size100%Font FamilyArialText ShadownoneBackground ColorblackBackground Opacity50%Window ColorblackWindow Opacity0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%200%175%150%125%100%75%50%ArialGeorgiaGaramondCourier NewTahomaTimes New RomanTrebuchet MSVerdanaNoneRaisedDepressedUniformDrop ShadowWhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%WhiteBlackRedGreenBlueYellowMagentaCyan100%75%50%25%0%It seems good on paper, but there are a few details that make me wonder why SCHD gets so much hype. It’s frequently praised in dividend subreddit posts, but its returns are lackluster compared to other options.-->-->Key PointsSCHD is a fan-favorite in many dividend investing communities, but that doesn’t mean it’s a good ETF.Investors can go into well-known benchmarks like the S&P 500 and Nasdaq Composite for higher returns.Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here.(Sponsor)-->-->The Pandemic Bump Makes It Look More Attractive Than It ShouldMost of the fund’s 45% gain over the past five years came in a small window in the back half of 2020. Many stocks soared during this time as the Federal Reserve pumped record-breaking money into the system and slashed interest rates. It was a pretty dramatic financial injection into the system, so almost every stock performed well during that stretch. However, SCHD only has an annualized 8.9% return over the past three years. It’s even worse that the fund only has a 2.8% return over the past year. This past year has been a good one for many ETFs, especially ones with exposure to AI stocks, so SCHD significantly lagged the stock market here.Investors didn’t even have to take big risks to outperform SCHD. The S&P 500 delivered a 15.9% return over the past year and an annualized 14.7% return over the past five years. Both marks have comfortably outperformed SCHD.A High Yield Doesn’t Mean The ETF Is A Good PickHigh yields look good on paper, but you end up losing a percentage of the yield to taxes. You will have to pay taxes on your dividend distributions at the long-term capital gains tax rate, assuming you hold your SCHD shares for more than a year. Some dividend stocks offer non-qualified cash distributions, which are taxed at less favorable ordinary income tax rates. Luckily for investors, SCHD prioritizes corporations that pay qualified dividends, but you’re still paying some money to the government each time you collect dividends.Investors can generate higher returns with ETFs that don’t offer high yields. The S&P 500 and Nasdaq Composite — two popular benchmarks — have handily outperformed SCHD over many years. Investors can opt to sell shares of these ETFs when they need cash instead of relying on dividends and sacrificing higher long-term returns.Limited Exposure To AI StocksArtificial intelligence is still in its early innings, and a portfolio that ignores these stocks can miss out on tremendous long-term returns. While some AI stocks are better than others, SCHD’s limited exposure to these stocks can limit upside.Cisco(NASDAQ:CSCO),Texas Instruments(NASDAQ:TXN), andVerizon(NYSE:VZ) are the 7th, 8th, and 10th largest holdings in the fund. These are the only three AI stocks within the fund’s top 10 holdings, while other funds lead with AI-heavyweights likeNvidia(NASDAQ:NVDA) andMicrosoft(NASDAQ:MSFT).These mature companies don’t offer as much upside as high-growth AI companies like Nvidia,AMD(NASDAQ:AMD), andBroadcom(NASDAQ:AVGO). SCHD investors are missing out on what can be tremendous long-term returns by missing out on AI stocks.If You’ve Been Thinking About Retirement, Pay Attention (sponsor)Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:Answer a Few Simple Questions. Get Matched with Vetted Advisors Choose Your  Fit Why wait? Start building the retirement you’ve always dreamed of.Get started today! (sponsor)