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Most people spend a significant amount of time thinking about their finances. A recent study found that Americans worry about money an average of
Depending
Banking is an area where financial slip-ups can often go overlooked. Read on to discover four common banking mistakes you might be making in your life. You’ll also find some expert tips on ways to save money (and perhaps earn some extra cash) at a financial institution.
Mistake #1: Only Opening a Checking Account
A
However, many checking accounts are l
According to the Federal Deposit Insurance Corporation (FDIC), the average annual percentage yield (APY) for interest checking accounts as of January 16, 2024, was a low 0.07
As you can see, opening a separate savings account or money market account could be an easy way to earn more money on your savings. Plus, by putting your extra cash in a separate deposit account, you might remove some of the
If you're in the market for new accounts, you may want to consider SoFi Checking and Savings. This account offers competitive rates for both checking and savings balances, as well as a valuable bonus.
SoFi Checking and Savings
- Our Rating 5/5 How our ratings work Read the review
- APY0.50% - 4.60%
Customers earn 4.60% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.60% APY on your savings balance. Checking balances earn 0.50% APY
- Minimum
Deposit RequiredN/A -
Intro Bonus
$50-$300Expires June 30, 2024
New customers can earn a $300 bonus for opening a new SoFi Checking and Savings account and receiving a total of $5,000+ in qualifying direct deposits within the specified evaluation period; receive $1,000 - $4,999 in qualifying direct deposits to earn a $50 bonus.
SoFi Checking and Savings boasts an impressive 4.60% APY on savings balances for customers who set up direct deposit, or who deposit at least $5,000 each month. This account also offers 0.50% APY on checking balances. There are no monthly maintenance fees, and new customers can even earn a generous signup bonus worth up to $300. If you don’t care about physical bank locations, this is a great option.
Overview
SoFi Checking and Savings features remarkably strong interest rates for customers who receive recurring monthly direct deposit, or who deposit $5,000+ every 30 days. This account also doesn’t have any maintenance fees, overdraft fees or non-sufficient funds fees. To top it off, new customers can earn a signup bonus worth up to $300.
Read the reviewPros
- Accounts with monthly direct deposit earn interest
- No minimum opening balance or minimum monthly balance
- No maintenance fees, non-sufficient fund fees or overdraft fees
- Access to Allpoint’s worldwide ATM network
- Get paid up to two days early
Cons
- No physical branch locations
Mistake #2: Not Paying Attention to Interest Rates
As mentioned, keeping all of your cash in a checking account is typically a mistake. But it’s also important to s
It’s typically easy to find both high-yield savings accounts and money market accounts with rates that are much higher than the national average. Depending on your financial goals, you might want to consider whether certificates of deposit (CDs) might be a good fit as well. CDs often feature higher returns in exchange for agreeing not to withdraw the funds you deposit for a set period of time.
Here’s a look at some of the best rates available right now:
Recommended High-Yield Savings Accounts
Bank Account | APY | Features | Learn More |
---|---|---|---|
|
5.25%
UFB Direct breaks balances into five tiers, but, currently, there is only one interest rate. |
No minimum deposit |
Open Account |
|
0.50% - 4.60%
Customers earn 4.60% APY on savings balances when they set up recurring monthly direct deposit of their paycheck or benefits provider via ACH deposit. Alternatively, deposit at least $5,000 each month to earn 4.60% APY on your savings balance. Checking balances earn 0.50% APY |
No minimum deposit |
Open Account |
|
5.05%
Earn 5.05% APY on balances over $5,000. Balances of less than $5,000 earn 0.25% APY. Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Platinum Savings account are variable and subject to change at any time without notice. |
$100 minimum deposit |
Open Account |
|
4.65%
Annual Percentage Yield is accurate as of July 27, 2023. Interest rates for the Savings Connect account are variable and subject to change at any time without notice. |
$100 minimum deposit |
Open Account |
Certificates of Deposit: Top CD rates for 1-year CDs typically exceed 5.00% as of January 2024. The national average for 12-month CDs, by comparison, was
Recommended Account
CIT Bank Term Certificates of Deposit
- Our Rating 3.5/5 How our ratings work Read the review
- Minimum
Deposit Required$1,000 - 1 Year APY0.30%
Annual Percentage Yield is accurate as of April 2, 2024. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice
- 3 Year APY0.40%
Annual Percentage Yield is accurate as of April 2, 2024. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice
- 13-Month APY3.50%
Annual Percentage Yield is accurate as of April 2, 2024. Interest rates for CIT Bank's term CDs are variable and subject to change at any time without notice
Many banks that offer CDs require customers to commit to lengthy terms of several years or more in order to earn the highest interest rates available. However, with CIT Bank's term CDs, the opposite is true. To get the best rates at CIT, you'll need to open one of its shorter-term CDs, such as its 13-month CD that pays 3.50% APY. If you want an easy way to save more money without having to wait years, CIT Bank's term CDs are a solid option.
Overview
If you’re looking for a dependable way to earn interest on your money in the short term, CIT Bank’s certificates of deposits may be an excellent choice for you. However, those looking to open a long-term CD may be better off looking elsewhere.
Read the reviewPros
- Strong rates for 13- and 18-month terms
- FDIC insured
Cons
- Rates for longer terms unimpressive
Mistake #3: Keeping Your Cash At One Bank
Not shopping around for the best rates available is a mistake. But you also risk missing out on higher interest-earning opportunities by
In addition to the potential for higher interest rates, there are other possible benefits of keeping funds with several financial institutions, including the following.
Limit Temptation
Some consumers prefer to save money at different banks and credit unions to limit their temptation to overspend. For example, if you keep your emergency fund at a different bank than your checking account, it might be easier to avoid tapping into your savings since those funds will be out of sight, out of mind.
Earn Bank Bonuses
If you open multiple bank accounts, you might have more opportunities to take advantage of valuable promotional offers and earn bank bonuses.
How to Manage Multiple Bank Accounts and Credit Cards Like an Expert
Featured Bank Bonus
Chase Total Checking® Account
- Our Rating 4/5 How our ratings work Read the review
- APYN/A
- Minimum
Deposit RequiredN/A -
Intro Bonus
$300Expires July 24, 2024
New Chase checking customers enjoy a $300 bonus when you open a Chase Total Checking® account with qualifying activities
Chase Total Checking® is among the best entry-level accounts. It typically offers new customers a sign-up bonus, and it’s fairly simple to waive the $12 monthly fee. However, it's worth noting that it doesn’t offer many valuable features or benefits and it’s not an interest-bearing checking account.
Overview
Chase Total Checking® is a basic checking account that doesn’t offer many premium features. However, if you can easily meet the qualifications required for the new account bonus (and to waive its monthly fee), it’s a good option for those who want an entry-level account.
Read the reviewPros
- No minimum opening balance
- Multiple ways to waive monthly fee
- Access to nationwide Chase branches and ATM network
Cons
- Monthly maintenance fee
- Account does not earn interest
Mistake #4: Ignoring Bank Fees
Many banks are notorious for charging their
If you want to limit the bank fees you pay, here are some options to consider.
Compare free checking accounts and the features that they offer.- Search for banks that offer
ATM reimbursement and free ATM access. - Opt out
of paper state ments. - Avoid banks that charge so-called
junk fees for inactivity, lost debit cards, surprise overdraft fees on debit transactions, and more. - Don’t use your debit card outside of the United States if it features
a foreign transactio n fee. (Better yet, consider using a no-foreign-transaction-fee credit card for added protection.)
Bottom Line
Small financial mistakes can add up over time. Paying extra money on a few fees here and there can also take more