Latest from Kiplinger in Online-banking

Kiplinger Readers' Choice Awards 2026: Peer-to-Peer Payment Services

Rachael Green — Mon, 04 May 2026 10:00:00 +0000

(Image credit: Future)

For the fourth year, we're pleased to present the winners of our annual Readers' Choice Awards. In a survey we conducted on Kiplinger.com in January and February, more than 4,200 readers rated the financial products and services they use in 13 categories, from credit cards and banks to brokers, wealth managers and annuity providers. The results here offer valuable insight into the everyday experiences that Kiplinger readers have with their financial providers.

Respondents made their judgments on such criteria as their interactions with customer service, the likelihood they would recommend the product or service to others, and their overall satisfaction with it. They also had the option to leave comments about their providers, and we have shared some of them here (remarks may be lightly edited for length and clarity).

For each category, we've listed an overall winner that earned the highest total score as well as other providers that earned above-average ratings for the various criteria that readers assessed. Our thanks to all of you who participated in the survey.

Kiplinger Readers' Choice Awards: Peer-to-Peer Payment Services

Peer-to-peer payment services make it easy to send and receive money among friends and family members from your smartphone. We asked readers to weigh in on their preferred payment app, based on ease of use, the likelihood they would recommend it to others and their overall satisfaction with the service.

OVERALL WINNER: Cash App

Outstanding for:

Ease of use
Most recommended
Overall satisfaction

Cash App unseated the reigning peer-to-peer champion, Apple Cash, this year, receiving outstanding scores across all criteria we asked about. Survey respondents were satisfied with how simple the app is to use as well as the "quick and easy payments."

Most peer transfers are free, but you’ll pay a 3% fee if you use a credit card as the payment source. When you move money from your Cash App balance to your external bank account, standard transfers of one to three business days are free; you’ll pay a fee of up to 2.5% for an instant transfer.

Cash App also offers financial services such as direct deposit of your paycheck to your account, a high-yield savings option and a debit card tied to your Cash App balance.

Highly-Rated Providers

Zelle

Outstanding for:

Ease of use
Most recommended
Overall satisfaction

Kiplinger readers overwhelmingly praised Zelle for its convenience. Built into the apps of many major banks, Zelle is easy to access without downloading a separate app. Survey respondents also appreciated that there aren't fees for sending or receiving money, which arrives directly in the recipient’s bank account within minutes.

Apple Cash

Outstanding for:

Most recommended
Overall satisfaction

Apple Cash was a three-time overall winner in past years, and it still earned high scores from our readers this year. "Easy, secure," says one reader. "Love that it links to a bank account and that I can use it to pay at stores."

Kiplinger Readers' Choice Awards Categories

How Readers Chose the Winners

Kiplinger readers were invited to take the Readers’ Choice Awards survey on Kiplinger.com between January 22 and February 19, 2026. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: brokerage firms, wealth managers, IRA providers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, national banks, internet banks, annuity providers, homeowners insurers, auto insurers, tax software Kiplinger readers were invited to take the Readers' Choice Awards survey on Kiplinger.com between January 22 and February 19, 2026. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: brokerage firms, wealth managers, IRA providers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, national banks, internet banks, annuity providers, homeowners' insurers, auto insurers, tax software and peer-to-peer payment services.

We asked readers to rate each provider they selected on a scale of one to 10 based on a few criteria. In many categories, readers rated the strength of customer service, how likely they would be to recommend the product or service to others, and how satisfied they are overall with the provider. In some categories, we included more nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm's advisers and the quality of its financial advice and retirement-planning services. For IRA providers, respondents assessed the mix of investment choices available to them. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience.

We calculated an average (mean) score for each criterion with each provider. We also calculated an overall mean score for all providers for each criterion we asked readers to judge. We compared individual provider mean scores with the overall mean, and the three highest-scoring providers that had a score above the overall mean won an "outstanding" accolade; in cases of a tie, more than three providers are named, and if fewer than three qualifying providers achieved an above-average score, only those providers are named "outstanding." In each category, providers are generally listed in descending order by the number of criteria for which they received the "outstanding" designation — so a product or company that is deemed "outstanding" in three areas, for example, is listed before a provider with one or two "outstanding" awards.

To choose an overall winner in each category, we added together the mean scores for each criterion rated for each product or service. The provider with the highest total score in each category took the prize for overall winner.

*Because of a technical issue during the 2026 survey data collection, some providers that readers evaluated in certain categories, marked with an asterisk, were ranked using patterns from the 2025 consumer survey data.Affected were three of 18 brokerage firms, six of 20 cash-back credit cards, two of 15 travel rewards credit cards, one of 13 airline credit card rewards programs, three of 33 banks, two of 14 annuity providers, and one of eight tax-software products. All other categories fully reflect 2026 data. All results represent actual Kiplinger reader feedback.

Kiplinger Readers' Choice Awards 2026: Internet Banks*

Sean Jackson — Mon, 04 May 2026 10:00:00 +0000

(Image credit: Future)

Kiplinger Readers' Choice Awards: Internet Banks

Generally, internet banks offer higher savings yields and lower fees than their brick-and-mortar counterparts, and customers can manage their accounts online or through a mobile app. Survey respondents judged these institutions on customer service, how likely they would be to recommend the bank to others and how satisfied they are overall with the bank.

Overall Winner: Charles Schwab Bank

Outstanding for:

Customer service
Most recommended
Overall satisfaction

Charles Schwab Bank, which has claimed the number-one spot among internet banks in three of the four years we've run the Readers' Choice Awards, is particularly attractive for customers who want to streamline their banking and investment services. "Costs nothing and works well,” says one reader. "Also nice that everything is connected to your investment accounts."

Schwab's free checking account is built for investors, allowing you to transfer money instantly between it and your Schwab brokerage account. There are no foreign-transaction charges when you use your debit card overseas, and you get unlimited refunds of out-of-network ATM surcharges worldwide.

Account holders also get free standard checks and 24/7 customer support. "Absolutely the best in customer service, hands down!" a reader remarks. "I can't see anyone beating them in convenience and service!"

Highly-rated providers

Ally Bank

Outstanding for:

Customer service
Most recommended
Overall satisfaction

Many Kiplinger readers are pleased with Ally Bank's solid customer service and low-cost accounts. "Best online banking available. Comprehensive account choices. Prompt, accurate transactions. Live, knowledgeable and thorough customer service agents," says one respondent.

With Ally's free checking account, you have access to 75,000 fee-free ATMs nationwide, and you're reimbursed up to $10 monthly in out-of-network surcharges.

Ally also offers a savings account, money market deposit account and certificates of deposit with no minimum balances required. The one-year High Yield CD recently featured a 3.7% rate, and the savings and money market accounts offered a 3.2% yield.

Capital One

Outstanding for:

Customer service
Most recommended
Overall satisfaction

Although Capital One still has brick-and-mortar branches, it also operates a popular internet bank. One reader summed up its capabilities this way: "App is easy to use and functional. Love the ability to see all accounts, including credit cards, in one place. Easy to deposit checks virtually and transfer money between accounts. Bill pay is also effective."

Capital One's 360 Checking requires no monthly fee or minimum balance, and customers have access to more than 70,000 fee-free ATMs nationwide. The 360 Performance Savings account recently yielded 3.2%, and CD rates were as high as 4.1%, for an 11-month term, with no minimum deposit required.

USAA

Outstanding for: Customer service

USAA offers a full suite of financial products, including a free checking account that reimburses up to $10 in monthly out-of-network ATM surcharges, savings accounts, and CDs, recently yielding as much as 2.25%. USAA also offers a youth checking and savings account, which is fee-free, and they come with parental controls and the flexibility to transition to an adult account at age 18.

USAA membership is open to military servicemembers and veterans, as well as the spouses and children USAA members.

Kiplinger Readers' Choice Awards Categories

How Readers Chose the Winners

Kiplinger readers were invited to take the Readers' Choice Awards survey on Kiplinger.com between January 22 and February 19, 2026. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: brokerage firms, wealth managers, IRA providers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, national banks, internet banks, annuity providers, homeowners insurers, auto insurers, tax software and peer-to-peer payment services.

*Because of a technical issue during 2026 survey data collection, some providers that readers evaluated in certain categories, marked with an asterisk, were ranked using patterns from 2025 consumer survey data.Affected were three of 18 brokerage firms, six of 20 cash-back credit cards, two of 15 travel rewards credit cards, one of 13 airline credit card rewards programs, three of 33 banks, two of 14 annuity providers, and one of eight tax-software products. All other categories fully reflect 2026 data. All results represent actual Kiplinger reader feedback.

3 Steps to Keep Your Digital Data Safe, Courtesy of a Financial Planner

scummings@halberthargrove.com (Shane W. Cummings, CFP®, AIF®) — Thu, 29 Jan 2026 10:35:00 +0000

(Image credit: Getty Images)

If you follow technology news, you've likely noticed a steady rise in large-scale data breaches and cyber incidents.

These attacks are becoming more significant for both personal data exposure and financial loss.

The growing use of AI and modern technologies has made it easier for criminals to create and automate malware, impersonate employees and exploit weaknesses in systems quicker than before.

Investors need to be alert. Even if you practice great cyber hygiene at home — updating devices, using secure passwords, limiting online exposure — your personal data might still be at risk because it's held by banks, insurers, medical providers and investment platforms.

Explore several key areas to pay attention to and steps you can take to help protect yourself, your friends, and your family.

Maintain good data hygiene

Protecting personal data starts with everyday habits. Review privacy settings on smartphones, computers and apps to limit third-party access.

Social media platforms — including Facebook and LinkedIn — offer privacy controls, but they typically default to sharing more information than necessary; 68% of social media users have changed their privacy settings to be more restrictive.

About Adviser Intel

The author of this article is a participant in Kiplinger's Adviser Intel program, a curated network of trusted financial professionals who share expert insights on wealth building and preservation. Contributors, including fiduciary financial planners, wealth managers, CEOs and attorneys, provide actionable advice about retirement planning, estate planning, tax strategies and more. Experts are invited to contribute and do not pay to be included, so you can trust their advice is honest and valuable.

Adjusting these settings is crucial if your profile includes contact details, birthdays, employment or family. While sharing those details may seem harmless, scammers can use them to impersonate individuals.

The Federal Trade Commission reported that financial fraud reached $12.5 billion in 2024, a 25% increase on the prior year, with imposter schemes accounting for many.

Criminals have been targeting older Americans more aggressively, as they're less likely to recognize fraudulent communication. This makes proactive protection even more critical; maintaining strong privacy can make you less visible and a more challenging target.

Remove your data from the web and close old accounts

Every new account you create online stores your data in a system. While you might stop using the platform, your emails, phone numbers, addresses and other identifiers can remain active.

Even if the company storing this data has strong security practices, its third-party processors may not — which is where breaches often occur.

While some of this is beyond your control, you can hire a company to remove your data from the internet. Providers such as Incogni, DeleteMe or Optery handle this process for you. I used Incogni, and it eliminated hours of manual submissions.

Despite growing concerns about data privacy, only 6% of American adults have ever used a data-removal service, which means most people still have personal information circulating online without realizing it.

These sites don't guarantee full protection, but they do help minimize your personal information's footprint online. Websites should respond to valid requests to delete your data from their systems, which is where such services come in.

You might also want to close accounts you no longer use. The fewer inactive profiles linked to your identity, the fewer places hackers can gather data points. This is increasingly critical, as AI data-scraping systems can now rapidly compile and analyze personal details, making it even more important to limit what is publicly accessible.

Choose institutions carefully

Although evaluating data governance policies might be difficult in practice, choosing institutions with strong security protocols can make a difference.

Companies are governed by different data privacy laws depending on where they are, and those in Europe — or doing business there — are subject to the General Data Protection Regulation (GDPR), one of the strictest frameworks. GDPR requires clear policies for how customer information is collected, stored, used and disposed of, creating higher expectations for data handling.

Some large Fortune 500 companies voluntarily adopt GDPR-level standards and might state that in their compliance policies.

Most institutions publish their customer use and data privacy policies online, outlining what they maintain, such as names, addresses, account numbers and history, and how that information is used. Reviewing these disclosures can be daunting, but for investors, these policies can serve as a differentiator and an informed decision point.

In the financial industry, the updated Regulation S-P is creating more consistent expectations around safeguarding client data. These rules will apply to covered institutions such as broker-dealers, investment companies and SEC-registered investment advisers.

Looking for expert tips to grow and preserve your wealth? Sign up for Adviser Intel, our free, twice-weekly newsletter.

While firm-level compliance efforts might be substantial, striving for higher standards can help ultimately benefit investors. A notable feature of Regulation S-P requires service providers to notify covered institutions within 72 hours of discovering unauthorized access to customer information.

This is expected to push firms to strengthen incident responses and system monitoring so breaches are communicated quickly. This can give investors more time to respond, change access to credentials and help prevent further exposure.

The digital landscape is evolving

Cybersecurity risks will continue to evolve rapidly, especially as criminals automate attacks using AI tools and data scraping. Recently, Anthropic disclosed that criminals attempted to use Claude AI to orchestrate a large-scale automated cyberattack, signaling where the threat environment is headed.

Investors don't need to become cybersecurity experts, but awareness matters. Your financial adviser can help you interpret risks, monitor updates and understand when personal information might be vulnerable.

Protecting your financial life today is no longer just about managing investments — it now includes protecting personal data.

Maintaining good data hygiene, reducing exposure, and working with institutions that take data privacy seriously are increasingly part of responsible financial planning.

This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.

Online Banks Still Lead on Rates, But Is Switching Worth it Now?

Paige Cerulli — Thu, 18 Dec 2025 14:30:45 +0000

(Image credit: Getty Images)

If you’re looking for the best interest rate on a savings account, chances are you’ll find it at an online bank. Online banks, which are banks that operate without physical branches, offer convenient digital banking and competitive interest rates that can maximize your return on your savings.

The national average interest rate for savings accounts is 0.61% APY, per Bankrate. However, online banks offer rates as high as 4%.

Since online banks have lower overhead costs, they're able to pass on better interest rates to customers than you'll typically find offered by traditional banks. We'll cover why interest rates change, some of the benefits you'll find with online banks and a few things to consider before making the switch.

How interest rates are changing and why it matters

Interest rates on savings accounts have eased modestly over the past year as the broader rate environment has shifted. The national average savings account rate stood at 0.47% in mid-January 2024 before gradually dropping to 0.39% by December 2025, according to FDIC data.

Why have they lowered? The Federal Reserve issued three rate cuts in 2025 due to a weak jobs market. When the Fed lowers rates, it impacts savers with lower APYs.

Thankfully, there's good news: The Fed refrained from cutting rates at its January meeting. And J.P. Morgan believes the Fed will hold steady with no rate cuts for 2026, making this an ideal time for savers to capitalize on higher rates with online banks.

Use this Bankrate tool to shop and find the best savings accounts fast:

Pros of banking online

For savers weighing whether to make the switch, the benefits of online banking extend beyond higher interest rates. Here are a few pros to consider:

Higher interest rates and potentially lower fees. Since online banks don't have the overhead of maintaining physical branches, they tend to offer higher interest rates on savings accounts. You may also find that online banks have lower fees than traditional banks.
Often no minimums. Traditional banks often require you to maintain a minimum balance in your checking or savings account. If your balance drops below the minimum, you'll be required to pay a monthly fee. Some online banks will waive that minimum balance for a fee-free approach.
Modern mobile features. Online banks often offer modern mobile features, including AI budgeting tools, face and fingerprint ID app capabilities, the ability to freeze and unfreeze your digital card, real-time spending alerts and more.
Quick account opening/management and low cost. Opening an account with an online bank is typically a quick and easy process. The setup process is typically quick, and you'll often get instant access to your account. Costs tend to be minimal, making digital banking an appealing option.

Cons and things to consider

While there are many benefits to online banking, you should also be aware of the drawbacks:

No branches / limited in-person service. Since online banks lack physical branches, you can't get in-person customer service. These banks may offer customer service via phone, online chat or social media, but the customer service methods and availability can vary from bank to bank. If you want the reassurance of being able to go to speak with a person directly, digital banking may not be the best choice for you.
Cash deposit hassles. Depositing cash in an online bank can be a hassle. Some banks partner with retailers like Walmart, CVS or Dollar General, and you'll need to go to one of those retailers to make your deposit. You may also be able to use an ATM to make a cash deposit.
Varying rates. While digital banking frequently offers higher interest rates, those rates can still fall quickly, decreasing the value you're getting from digital banking. Some online banks may offer higher promotional rates that will decrease over time. Be sure to read the bank's policies to fully understand how interest rates may change.

Where to find the best savings rates

(Image credit: Getty Images)

With the national average savings rate sitting at 0.61%, the gap between traditional banks and online options remains wide. Here's how a few online banks currently stack up.

Varo offers a high-yield savings account with 5.00% APY on up to $5,000, and 2.5% APY on the rest of your balance.
AdelFi’s personal savings account offers new members 5% APY on up to $5,000, and 2.25% APY on balances from $5,000 to $10,000.
SoFi’s high-yield savings account features a six-month introductory 4.30% APY and a standard 3.60% APY.
Axos offers an Axos ONE savings and checking bundle. Customers can get up to 4.31% APY on savings and 0.51% APY on checking.
Newtek Bank: Offers rates of 4.20% APY, with no account minimums or fees

When switching makes sense and when it doesn’t

You may decide it makes sense to switch to digital banking if you have substantial savings and want to maximize the interest your money earns. By switching to a high-yield savings account through an online bank, you may qualify for a substantially higher interest rate than your current APY.

But be careful about aggressively chasing rates, especially if online banks are offering promotional rates. If you're looking for a long-term banking solution, it's important to make sure that the services available and the overall convenience the bank offers truly match your needs. Consider the types of accounts you need and your banking priorities when deciding if an online bank is right for you.

It's common to be worried about the safety of online banking, especially since you won't initially go to a physical branch to open your account and make your first deposit.

Be sure to choose a bank that is FDIC insured. FDIC insurance applies whether the bank is online or brick-and-mortar, and in case of a bank failure, FDIC insurance protects your money up to at least $250,000.

How to decide if an online bank is right for you

Digital banking offers many perks, including higher interest rates than traditional savings accounts provide. But those perks come with trade-offs, including the lack of in-person customer service, cash deposits that can be a hassle and potentially varying rates.

If you're considering switching to online banking, take some time to research each bank and its available products. Compare the current rates and review the fee schedule to understand the potential costs involved and any minimum balance requirements.

You can also take advantage of digital banking interest rates with a hybrid approach. Consider opening a savings account with a digital bank, but also leave your other accounts in your current bank open, too. You can try this hybrid approach to see how well digital banking works for you.

4 Great Tools to DIY Your Own Financial Plan

Chris Taylor — Wed, 17 Dec 2025 13:00:00 +0000

There was a time when Mark Felton put together a financial plan the old-fashioned way: With spreadsheets.

The 59-year-old from Stilwell, Kansas, had always been reluctant to pay an ongoing portfolio-management fee to an adviser, so he wanted to try financial planning on his own. Because he had no formal training in that area — he works in the legal department for a cell-phone carrier — that was a pretty big hill to climb. He found the spreadsheet method cumbersome, and he figured there might be some gaping holes in his knowledge. So last year, he started toying around with do-it-yourself software.

"As I got into my fifties, I realized I didn't have a great financial plan," says Felton, whose brood includes four adult kids and three grandchildren. "So I started looking around and subscribed to few different programs. I wish I had discovered this software a lot earlier."

Everyday users now have access to suites of tools that are approaching professional levels. While not as sophisticated as the enterprise software advisers use — programs such as eMoney, MoneyGuidePro, RightCapital, NaviPlan and Holistiplan—consumer-oriented tools are still impressive. They are available from multiple providers, with different interfaces, approaches and price points.

These programs won't replace advisers, whose role involves much more than just number-crunching. But for those who are looking for a DIY option and enjoy digging into the data, the choices are better than ever.

"The evolution of DIY planning software has been tremendous," says Stephen Kates, analyst for Bankrate. "It has come a long way, even compared to what was available just a few years ago. A basic retirement calculator used to be all you'd have if you didn't want to talk to an adviser. Now these products have become so good."

Although you may be charged a fee to use some of these DIY services, you'll likely pay less than you would to an adviser, whose typical annual fee is about 1% of assets under management. Below, we've shared pricing as well as some notable features for a few major programs.

Boldin

Best for: Those who prefer a data-rich deep dive into retirement planning.

Formerly known as NewRetirement, Boldin is one of the most prominent offerings. More than 450,000 people have built plans on the platform, with users managing more than $300 billion in total assets.

Among Boldin's features: A calculator that helps you set a strategy for converting traditional retirement accounts to a Roth IRA, and a tool that lets you compare and contrast the outcomes for multiple financial scenarios. For instance, you can test out different inputs for when you or your partner will retire, your projected health care expenses or what the inflation rate will be. Note that these features kick in at the paid tiers, which start at $12 monthly, while the free version is more limited.

(Image credit: Boldin)

"It's not much more than what you pay for a Netflix subscription, but you're getting tons of information and data for that money," says Ben Henry-Moreland, a certified financial planner and "Senior Financial Planning Nerd" at Kitces.com, which supports the financial advisory industry. "It offers a lot of bang for the buck."

You choose the level of service you want, from a basic subscription to more-comprehensive advisory services from Boldin's in-house team. The tiers include a free version as well as PlannerPlus, which is $12 a month and includes more-advanced features. For $31 a month, you can get assistance from a coach to navigate the tools. And Boldin Advisors comes with comprehensive guidance from a CFP. You'll pay a flat yearly fee starting at $550 for ongoing advisory support. Or, for a thorough, one-time review of your financial plan, try the Retirement Plan Checkup, for $2,800.

Mark Felton was drawn to the software's sophisticated Monte Carlo simulations, showing the probabilities of how long his money will last under different scenarios. But as he gets closer to retirement, the most helpful function has been figuring out cash flow, "seeing where the sources of income will be — Social Security, a pension or withdrawals — and how to draw them down most efficiently," he says. "I hadn't even considered some of these things, like income taxes on required minimum distributions. That's been the biggest eye-opener."

MaxiFi

Best for: True DIYers who want a realistic assessment of how much they can spend in retirement.

Larry Kotlikoff, a professor of economics at Boston University and a well-known personal finance expert, developed MaxiFi. It has been online since 2017, with tens of thousands of users, after starting out as a desktop version called ESPlanner back in the 1990s.

After you answer an initial, 10-minute series of questions, MaxiFi generates what it calls a Base Plan. After that, you can explore more in-depth scenarios, such as with the Maximized Plan, which analyzes ways you can safely increase your discretionary spending. For example, it helps you narrow down a Social Security claiming strategy to boost your benefits and calculate ideal withdrawal rates from your retirement accounts to minimize taxes.

MaxiFi claims to remove guesswork that could lead to off-target numbers, instead employing "economics-based planning." Specifically, it zeroes in on what economists call consumption smoothing: Figuring out a consistent and affordable level of spending so that you're neither splurging nor slashing costs based on temporary circumstances.

In that sense, the results tend to be more "logical," says Kates. Instead of letting you enter growth assumptions for your portfolio that may be too large, MaxiFi paints a realistic picture of "what you have and what that will be likely to produce," he says.

(Image credit: Maxifi)

MaxiFi's Standard level costs $109 a year, and the Premium version is $149 a year, with the latter featuring elements such as life insurance contingency planning in case a spouse passes away sooner than expected, a tool to determine a Roth conversion strategy, and a Monte Carlo function. A typical Monte Carlo analysis might be limited to studying assets, projected growth and the chance you might go broke, but MaxiFi's looks at more data, such as specific family circumstances, more-dynamic spending based on market conditions, and the risk to your desired living standard, so you can tweak the dials as needed.

MaxiFi's Premium Plus level, at $359 a year, offers more-specialized guidance as you navigate the tool's features and includes the annual Flight Check service. That's a one-hour, private online session with an expert to walk through your plan, check your data inputs and assumptions, and explore alternative scenarios you may not have considered. You can also sign up for deeper assistance from an expert; with the $1,000 Co-Pilot session, for example, you join a CFP for a two-hour call to build a financial plan. But MaxiFi doesn't provide ongoing advisory services.

Empower

Best for: Those looking for free tools to analyze their portfolio and test out their retirement plan.

The popular site Personal Capital was absorbed into Empower starting in 2020, which is where you'll now find its dashboard and tools. Its offerings are a little more basic and straightforward compared with, say, Boldin's tier that generates a plan from more than 250 data inputs. But a key appeal of Empower's Personal Dashboard is that it's free, so it's a snug fit for those who don't have any interest in an ongoing subscription plan.

"It doesn't have quite as many functionalities, but it still works very well," says Kates. "It's a good option for someone who is dabbling but doesn't want the up-front cost. It's like a high-touch robo adviser."

(Image credit: Empower)

Among its useful features are the Retirement Fee Analyzer, breaking down how much of your portfolio could be lost to management fees (more than most people realize), and the Investment Checkup, which compares your current allocations to recommended, target ones. But it doesn't have the depth and breadth of some other software, such as tools that address Roth conversions or Social Security claiming strategies.

The program is fairly insistent that you electronically link it to all your financial accounts. That's useful for assembling a complete and current picture of your finances, but it may give you pause if you're concerned about privacy or security. You can enter data manually, but not in an easy or intuitive way.

If you want one-on-one consultations with an adviser and a more bespoke plan, you can use the Personal Strategy service, which is open to those with at least $100,000 in investable assets. But you'll pay an annual fee of as much as 0.89% of assets under management, which is the kind of charge that many DIYers are seeking to avoid.

Empower

Organize your financial life into one hub, allowing you to see cash flow projections, investment performance and much more.

Origin Financial

Best for: Users who would like to leverage AI to manage budgeting and spending.

If you want to lean into artificial intelligence — with a personal finance twist — Origin offers a unique way to explore what's possible. It bills itself as a "personal AI financial adviser," and after you connect your accounts to it, it essentially gives your finances an x-ray in typical areas, such as spending, investing and forecasting how your money may grow. Recently, you could sign up to use Origin for just $1 for the first year. It renews at $99 annually, so set a reminder near the one-year mark to evaluate whether you want to continue the service or cancel it.

Origin isn't quite as retirement-focused as other software, and it leans toward helping you monitor day-to-day finances, such as examining your current spending patterns. For example, its AI Budget Builder instantaneously creates a budget based on your income and spending needs, and it can help you review and cancel any monthly subscriptions that are gobbling up cash.

As you might expect with an AI tool, there's not much output from live human beings. Conversational AI models run the show, using contextual reasoning, market data and your own financial history to inform the answers. That makes up part of Origin's appeal: You can ask it questions and get tailored responses, as you would with ChatGPT, which can be an intuitive way to understand your finances.

"It's much more of a natural-language chatbot interface," says Henry-Moreland. "Rather than all numbers, all the time, you can ask it things like, ‘What can I do to save for a home in five years?' And you get an answer. From a user standpoint, I like that."

How to use these tools

Whichever program you choose to go with, keep a few general principles in mind:

Run multiple scenarios.

If there is anything predictable about life, it's unpredictability. So if you are entering only one set of data and assumptions — about income or savings, projected investment growth, lifespan, and so on — then you're getting a narrow view of how much you need to save and potential outcomes.

A primary advantage of these software programs is that you can move the dials on any scenario and instantly come up with new figures.

"One of the biggest mistakes people make is not accounting for variability," says Charles Rotblut, vice president at the American Association of Individual Investors. "Two classic errors are that either you or your spouse will live longer than you expect, and that you might need long-term care earlier than you think. Even just changing life expectancy, from 85 to 90 or 95, will drastically change how much savings you'll need and how much you can withdraw. So assume a lot of different scenarios, and run them all."

Know the limitations.

(Image credit: Getty Images)

DIY software is terrific at coming up with projections. But that's only the first step of any fully realized plan. The next question is, what do you do with those numbers?

That's where interaction with a human being could be helpful. When it comes to software programs, "the biggest shortcoming to me is the focus on numbers, like probability of success, without a lot of the context that you need to do something productive with that," says Henry-Moreland. "That's the danger when you take tools developed for professionals and give them to a consumer audience: You might get Monte Carlo probabilities in front of you, but you don't understand the way forward."

Revisit your conclusions.

Taking the time to enter all your financial data correctly can be laborious and time-intensive, so you may not feel like going back and doing it all over again in the future. But you should revisit those results.

"Even if you only subscribed to a program to use it once, you should go back later and update those scenarios," says Rotblut. "Because as you get closer to retirement, things will change — how long you decide to work, what your health is like, differences in lifestyle or spending, or what the stock market has been doing. All your assumptions may be very different from what you actually encounter."

Mark Felton agrees, and he even takes it a step further: He occasionally meets in-person with a local group of about 10 other DIYers. They share their financial plans, bounce ideas off each other, and get some critical feedback.

It might seem a little counterintuitive to chart a financial path on your own, only to hash it out with peers. But for Felton, that approach combines the best of multiple worlds: leveraging tools similar to what the pros use, avoiding fees that draw down your assets, and talking things through with other finance aficionados to see where your blind spots might be.

"I view it as a tool to use on an ongoing basis," says Felton, whose rough plan is to retire by 65 — only a few years away. "You don't need to redo your plan every day or week or month, but you can't just do it one time. The markets change, the environment changes, and your personal circumstances change."

Note: This item first appeared in Kiplinger Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

How to Skip Fees at the Bank

lisa.gerstner@futurenet.com (Lisa Gerstner) — Fri, 21 Nov 2025 12:00:00 +0000

If you’re not careful, the fees that come with using a checking account can add up quickly.

Getting cash from an out-of-network ATM costs more than ever. Average total ATM fees, including both the charge from your own bank as well as from the ATM’s operator, are at a record high of $4.86, according to a recent Bankrate survey.

The average minimum balance required to avoid a monthly maintenance fee on an interest-bearing checking account has reached an all-time high, too. Customers have to keep $10,705 in their accounts to sidestep a fee of $15.65, on average.

Overdraft fees have dropped slightly from 2024, but they’re still steep, averaging $26.77.

The good news is that you can steer clear of all these fees, especially if you choose your account wisely. Use these tips to keep them at bay.

Beat ATM surcharges

Before you withdraw cash at an ATM, make sure the ATM is in your bank’s network. Some institutions are members of large networks, such as Allpoint or MoneyPass, that allow customers to withdraw money fee-free from tens of thousands of ATMs around the country.

And members of credit unions that are part of the CO-OP network can access more than 30,000 surcharge-free ATMs nationwide.

Another idea: When you use your debit card to make purchases at participating retailers, such as some grocery stores and pharmacies, you may be able to get cash back as part of the transaction (but check first whether the merchant charges a fee for this service).

Keep in mind that retailers often impose lower limits than ATMs on how much cash you can get.

Some banks reimburse customers for out-of-network ATM surcharges. Ally Bank, for example, refunds up to $10 monthly in ATM fees for those who use its checking account or money market deposit account.

Charles Schwab Bank reimburses all ATM surcharges, both in the U.S. and abroad, with its Investor Checking and Investor Savings accounts.

The Cash Management Account from Fidelity Investments includes unlimited reimbursement of ATM fees worldwide, too.

Dodge other fees

You can still find free, no-strings checking accounts. The above-mentioned accounts from Ally Bank, Charles Schwab Bank and Fidelity don’t charge a monthly fee, and other internet banks offer no-fee checking, too, including Axos Bank, Capital One 360, Discover Bank and EverBank.

Even checking accounts that charge a monthly fee usually offer at least one way to avoid it. You may be able to skip the fee if you set up direct deposit, for example.

And plenty of accounts that include a minimum-balance requirement as a qualification have a threshold of less than $10,000. TD Bank, for instance, lets you skip the $15 monthly fee on its Beyond Checking account if you meet one of three requirements, and one of them is maintaining a daily balance of $2,500 in the account.

If you’re enrolled in overdraft coverage, your bank will cover for you if you spend more money than you have in your checking account, but it’ll charge you an overdraft fee.

You can opt out of overdraft coverage; in that case, your debit card may be declined in a transaction if you have inadequate funds in your account.

Alternatively, many banks let you link your checking account to a backup source, such as a savings account, and have money automatically transferred if you overdraw your checking account.

Some institutions charge a fee for this service, but it’s typically less than what you’d pay for overdraft coverage. Other banks offer overdraft transfers at no extra charge.

Lawsuit Claims Zelle Security Lapses Cost Over $1 Billion in Fraud: What You Need to Know

Rachael Green — Fri, 15 Aug 2025 17:07:27 +0000

In a lawsuit filed this week, New York Attorney General Letitia James claimed that over $1 billion was stolen from Zelle users via fraud between 2017 and 2023.

The Consumer Financial Protection Bureau (CFPB) filed a lawsuit in December 2024 alleging the same thing, but when that lawsuit was dropped in March 2025, New York's attorney general decided to file a suit of her own against the digital payment service to seek compensation for New York consumers.

The new lawsuit claims that Early Warning Services, LLC (EWS), the company that owns the Zelle app, knew fraud was a problem on the app but chose not to do anything about it. In response to the news, a Zelle spokesperson called the lawsuit "a political stunt to generate press, not progress."

The Zelle statement added: "More than 99.95% of all Zelle transactions are completed without any report of scam or fraud – which leads the industry."

If you've ever used Zelle to send or receive money, you know how convenient and quick it is. You have probably also heard about the many forms of fraud and scams that swindle unsuspecting users. Here's what you need to know about the New York lawsuit against Zelle and some tips to avoid being scammed when using payment apps.

Why the lawsuit blames Zelle for $1 billion in fraud losses

(Image credit: Bloomberg / Contributor)

The short version of the charges by the New York attorney general's office is that EWS failed to implement safeguards that would have protected users from fraud.

The lawsuit alleges that after receiving repeated reports of fraud, EWS chose not to adopt basic safety measures that it had the technology and know-how to do. As a result, the lawsuit claims, consumers lost over $1 billion while the company profited from the app's rapid growth.

By the time the company adopted basic safeguards in 2023, the New York attorney general says that the measures were essentially too little, too late. She is now asking that Zelle pay stolen funds back to New York consumers who have been hit by fraudsters on the app.

Here's a quick timeline of what happened, according to the lawsuit:

In 2017, the Zelle payment app was launched by EWS, a company co-owned by seven of the nation's largest banks – Bank of America, Chase, Wells Fargo, Capital One, Truist, PNC Bank and U.S. Bank. The app was rushed to market to compete with fast-growing rivals like Venmo and Cash App, the lawsuit says.
Also beginning in 2017, EWS ran multiple ad campaigns emphasizing the app's safety and security. That included leveraging its connection to big banks that allowed the online payment system to be automatically integrated directly into users' existing mobile banking apps. One ad said Zelle is "backed by the banks, so you know it’s secure."
By 2019, fraud was a problem, but the company hadn't adopted security measures to combat it, including not requiring banks to report fraud, the lawsuit claims. While it did require banks to report takeover fraud (when your account is hacked into or otherwise accessed without your permission), EWS was lax about the timing of reporting, the lawsuit claims, which gave fraudsters more time to "victimize additional consumers."
In 2019, EWS developed a framework of "basic network safeguards" that could have made certain types of fraud more difficult. But, "EWS abandoned the basic network safeguards," the lawsuit says, opting for a less effective alternative.
In 2023, the company implemented the "basic network safeguards" and fraud immediately decreased, suggesting that hundreds of millions of dollars could have potentially been saved in the years between 2019 and 2023 if EWS had adopted those safety measures when it first developed them. This is the main thrust of the attorney general's lawsuit.

Zelle's easy-to-use payment platform is just as easy to use for fraudsters

(Image credit: Bloomberg / Contributor)

The same features that make Zelle so convenient for you also made it an easy target for fraudsters, according to the complaint filed by the New York state attorney general's office.

Some of the security gaps the lawsuit claims were present before "basic network safeguards" were implemented in 2023 included:

A "quick registration process and lack of verification," making it easy for fraudsters to sign up.
"Limited information displayed" when sending money to someone, making it easy for scammers to trick people into sending money to fraudulent email addresses.
The immediate availability of funds after a transfer, making it easy for fraudsters to take the money and run, and next to impossible to claw those funds back if you're a victim.
The ease with which users could change email addresses, link to different bank accounts or link to accounts at different banks, making it easy for scammers to juggle multiple scams at once and evade detection.

The complaint filed by the New York attorney general claims that basic safeguards could have helped protect many consumers from fraud.

As an example, the New York complaint describes a scam in which a fraudster registered on Zelle using an email with "Coned Billing" in the name — Con Edison is the major utility provider in New York City — and sent messages to users claiming they owed money and their power would be shut off if they didn't pay. The complaint says that if EWS had implemented a system for flagging potentially misleading email addresses, that email could have been blocked.

Save Up to 68% On Aura Identity Theft Protection
Aura provides everything you need to protect your identity. Get up to 250x faster fraud alerts, 3-bureau credit monitoring, up to $5 million in identity theft insurance, and 24/7 U.S.-based fraud support. It also includes an antivirus, VPN and password manager for proactive security. Kiplinger readers can save up to 68% when they sign up.

Preferred partner (What does this mean?)

Protect yourself from fraud when using payment apps

(Image credit: Getty Images)

While it's too early to say what will happen with the lawsuit in New York, there are steps you can take today to protect yourself from fraud or scams.

Here are a few of the most impactful steps:

Know how easy it is to impersonate trusted people or organizations. Just because the name reads "Coned Billing" or otherwise looks familiar doesn't mean it's actually attached to the account in question. For individuals you send money to, get their payment app information from them in person and save it in your payment app ahead of time so you can easily spot a false contact.
Know that you often can't get your money back from a scam. Zelle, and some participating banks, differentiate between "fraud" and "scams." Fraud is when someone takes money out of your account without your knowledge or permission. In many cases, banks will usually refund this type of theft. A scam, on the other hand, is when someone tricks you into voluntarily sending them money. Because it was technically voluntary, albeit through deception, some banks won't refund this type of theft. So, if you're ever in doubt, it's better to be too cautious.
Hang up and verify before giving any personal information or sending money. Nothing is so urgent that you can't take a few minutes to verify the information you're being told. Even if the person knows certain details about you, hang up (or ignore the email). Then, go to the organization's website and use the contact information found there to call back.
Question unusual or unexpected payment requests from loved ones. No matter how urgent or legitimate it seems, always hang up (or ignore the text/email) and call the person back by calling the number saved in your contact list. If it's that person, they won't mind you taking that minute to verify.
If you really do owe money, pay it the way you normally would, not through a payment app. If your utility company or bank claims you owe money, you don't need to pay them right there via a payment app. You can log into the online portal where you usually schedule bill payments and see any balance owed there. Then, set up a payment using your usual methods. If online portals aren't available for a particular company, verify the amount owed in person and make the payment that way.
Monitor your accounts regularly for unusual activity. Check your checking and savings accounts regularly, along with any credit cards you have. If you spot a transfer or charge that you don't recognize, call your bank right away. At the same time, change your password for accessing that account and consider locking the card or the account altogether while sorting out the issue with your bank.

Fraud prevention starts with awareness and caution

Regardless of the lawsuit’s outcome, this case is a reminder to stay vigilant when using payment services like Zelle. While providers should implement safeguards to keep scammers out, you should still be cautious and trust your instincts if something feels off.

2025 Kiplinger Readers' Choice Awards Results

lisa.gerstner@futurenet.com (Lisa Gerstner) — Tue, 27 May 2025 04:02:30 +0000

Kiplinger readers are a savvy bunch, especially when it comes to making smart choices with their money. So for the third year running, we asked you to rate financial providers based on your experiences with them. More than 2,700 readers completed our survey earlier this year, judging the products and services they use in 13 categories, from brokers and wealth managers to annuity providers, tax software, and home and auto insurance companies.

In the survey, respondents scored providers on certain criteria, such as their experience with the company’s customer service team, the likelihood they would recommend the product or service to others, and their overall satisfaction with it. Readers also had the option to leave comments about their experience, and we have shared some of them in the full category guides (remarks may be lightly edited for length and clarity).

For each category, we’ve listed an overall winner that earned the highest total score. We’ve also listed other products and services that earned above-average scores for the various criteria we asked readers to assess. Many thanks to all of you who participated in the survey.

Kiplinger Readers’ Choice Awards Categories

Best Full-Service Brokers

We asked readers to evaluate brokerage firms whose offerings run the gamut of services to customers, whether online, by phone, through in-person assistance at brick-and-mortar branches, or some combination. Readers rated the strength of their broker’s customer service, how likely they are to recommend the firm to others and their overall satisfaction with the broker.

The overall winner is Fidelity Investments.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best full-service brokers.

Best Wealth Management

These firms take a holistic look at your finances and offer advice tailored to you. Beyond assisting with investment strategies, advisers may help you manage credit and debt, savings, estate and tax planning, and more. Readers rated wealth managers based on the quality of financial advice they received, the trustworthiness of the advisers, how likely they would be to recommend the firm to others and their overall satisfaction with the wealth manager.

The overall winner is Fidelity Wealth Management.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best wealth management services.

Best Cash Back Credit Cards

Cash back cards usually offer simple terms and the opportunity to earn rewards on everyday purchases. We asked readers to rate cash back cards on the responsiveness of customer service, how likely they would be to recommend the card to others and their overall satisfaction with the card.

The overall winner is Fidelity Rewards Visa.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best cash back credit card.

Best Travel Rewards Credit Cards

These cards typically offer extra points or miles on travel spending. And many heap on additional perks, such as statement credits for hotel, airline or dining purchases. Readers rated travel rewards cards on the strength of customer service, the likelihood they’d recommend the card to others and overall satisfaction.

The overall winner is the Platinum Card® from American Express.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best travel rewards credit card.

Best Airline Card Rewards Programs

Airline credit cards reward brand loyalty. You’ll get miles or points for every flight you book with the airline, and with some programs, you can earn free airline tickets, access to airport lounges and other travel perks. We surveyed readers in three areas: strength of customer service, whether they would recommend the credit card program to others and overall satisfaction.

The overall winner is the Southwest Airlines credit card rewards program.

Read our full guide: Kiplinger Readers' Choice Awards 2025, airline credit card rewards programs.

Best Hotel Credit Cards Rewards Programs

As with airline card programs, hotel credit card programs reward you for being loyal to a particular hotel chain. The more you stay, the more perks you can receive, such as free nights, upgraded rooms, late checkouts and more. These hotel credit card programs earned top marks from our readers, who rated the programs on the strength of customer service, the likelihood they’d recommend the program to others and overall satisfaction.

The overall winner is the Marriott Bonvoy credit card program.

Read our full guide: Kiplinger Readers' Choice 2025, Hotel Credit Card Rewards Programs.

Best National Banks

These large institutions have a presence in many states and offer branches where you can conduct transactions. We assessed readers’ overall satisfaction with their bank, their opinion of its customer service and the likelihood they would recommend the bank to others.

The overall winner is Chase Bank.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best national banks.

Best Internet Banks

Internet banks often provide higher yields than their brick-and-mortar counterparts. The reason? Internet banks don’t have physical locations, so their overhead costs are lower, allowing them to pay out better rates. Survey respondents judged these institutions on customer service, how likely they would be to recommend the bank to others and how satisfied they are overall with the bank.

The overall winner is Charles Schwab Bank.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best internet banks.

Best Auto Insurance Companies

We asked readers to weigh in on auto insurance, judging their primary provider based on how competitive the rates are, their experience with filing claims and how likely they are to recommend the insurer to others. The following companies stood out from the rest in our survey.

The overall winner is USAA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, auto insurance companies.

Best Homeowners Insurance Companies

Readers rated their homeowners insurance provider based on how competitive the rates are, how positive the experience is when filing a claim and how likely they would be to recommend the insurance company to others. Most of the providers that collected accolades for homeowners insurance are also honorees for their auto insurance services.

The overall winner is USAA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, homeowners insurance companies.

Best Annuity Providers

Annuities are contracts that allow you to pay an amount up front or over time in exchange for the opportunity to create a steady stream of income in retirement; they may be fixed or variable, and they may provide income immediately or in the future. We asked readers to assess their annuity provider based on customer service, their overall satisfaction with the company and how likely they are to recommend it to others.

The overall winner is New York Life.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best annuity providers.

Best Tax Software

These programs guide taxpayers through the ins and outs of preparing and filing a tax return. The offerings vary depending on your return’s complexity and whether you want help from a tax pro. We asked readers to rate their preferred tax-filing software based on ease of use, how likely they are to recommend the service to others and overall satisfaction with it.

The overall winner is FreeTaxUSA.

Read our full guide: Kiplinger Readers' Choice Awards 2025, tax software.

Best Peer-To-Peer Payment Apps

Peer-to-peer payment apps allow you to digitally send and receive money with friends and family from your smartphone. We asked readers to evaluate their preferred payment app’s ease of use, their overall satisfaction with it and how likely they are to recommend it to others.

The overall winner is Apple Cash.

Read our full guide: Kiplinger Readers' Choice Awards 2025, best peer-to-peer payment apps.

How Readers Chose Their Winners

Kiplinger readers were invited to take the Readers’ Choice Awards survey on Kiplinger.com between February 20 and March 21, 2025. The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: full-service brokerage firms, wealth managers, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, hotel credit card rewards programs, national banks, internet banks, auto insurers, homeowners insurers, annuity providers, tax software and peer-to-peer payment services.

In some categories, we included more-nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm’s advisers and the quality of its financial advice. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience.

In each category, providers are generally listed in descending order by the number of criteria for which they received the “outstanding” designation — so a product or company that is deemed “outstanding” in three areas, for example, is listed before a provider with one or two “outstanding” awards.

Kiplinger Readers' Choice Awards Categories

Kiplinger Readers' Choice Awards 2025: Internet Banks

Sean Jackson — Tue, 27 May 2025 04:01:00 +0000

About the Kiplinger Readers’ Choice Awards 2025
The Kiplinger Readers’ Choice Awards aim to recognize and celebrate the best products and services in the personal finance arena. We asked you, our Kiplinger community, to help us name the products and services you think have delivered excellent value in the past year.

The survey results, which we’re sharing here in our second annual Readers’ Choice Awards, offer valuable insight into which providers shine when it comes to your everyday interactions and experiences with them. Our Awards recognize excellence in everything from credit cards, banks and brokers to insurers, tax software and financial apps. For each category, we’ve listed an overall winner that earned the highest score. We’ve also highlighted other products and services that earned above-average scores for various criteria we asked readers to assess.

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers' Choice Awards: Internet Banks

OVERALL WINNER: Charles Schwab Bank

Outstanding for:

Customer service
Most recommended
Overall satisfaction

If you want to bundle your banking and brokerage services, Charles Schwab is a great option. Schwab Bank’s Investor Checking charges no monthly fees, and although you must link it to a Schwab One brokerage account, you’re not required to maintain a minimum balance in either account. You can move money securely and quickly from your checking account to your brokerage accounts. Schwab also offers a savings account with a 0.15% yield.

Schwab Bank is particularly appealing for international travelers. You don’t pay foreign-transaction fees when you use your debit card overseas, and you get unlimited reimbursement of out-of-network fees when you use your card at ATMs worldwide—a “fantastic” benefit, one reader says.

Ally

Outstanding for:

Customer service
Most recommended
Overall satisfaction

Ally offers healthy yields on its CDs, high-yield savings account and money market account. The money market account for example, recently yielded 3.6% and provides quick access to your cash with a debit card. One reader notes, “The interest rates are consistently competitive, and the customer service is excellent.”

Ally also keeps fees to a minimum, charging no monthly maintenance fee on accounts and no fees for incoming wires. Customers have access to more than 75,000 fee-free ATMs nationwide, and the bank reimburses up to $10 monthly in out-of-network ATM surcharges.

USAA

Outstanding for:

Customer service
Most recommended
Overall satisfaction

“I've been with USAA for over 45 years. I would not use another bank as my primary bank for checking and savings,” says one dedicated reader.

To become a USAA member, you must be an active-duty military member, a veteran, or a spouse or child of one who served. For those who qualify, USAA offers a full suite of banking services and money-management tools.

Checking customers can access more than 100,000 in-network ATMs nationwide, and they also get up to $10 refunded monthly in out-of-network fees. In some cases, members can receive their paycheck via direct deposit up to two days before payday.

Kiplinger Readers' Choice Awards Categories

How Apps Are Impacting Traditional Banking

Clay Bethune — Wed, 05 Feb 2025 13:15:00 +0000

Banking has seen significant change with budding fintech and a growing interest in the stock market from younger generations. With so many mobile-first solutions available, users can now perform financial tasks in seconds. Taking away the hassle of going into a physical branch has led some to move away from traditional banking, especially in areas of the world where such structures are not readily available.

Applications such as Chime and Cash App are at the forefront of this shift in appeal, targeting features including flexibility, convenience and ease of access. The numbers speak for themselves: In a recent report, more than 80% of surveyed consumers said they managed their finances on their mobile devices at least once in the previous month. This trend is driven by apps’ ability to simply make life easier; from paying bills to managing savings goals, app-based banking is quickly becoming the future of money management.

More than a convenience, this is a redefinition of financial engagement. And as these platforms further develop, they’re becoming less an addition to banks and more a replacement — ushering in a whole new era of personal finance.

Let’s take a closer look at the advantages of these platforms and what they mean for the future of banking.

Advantages of app-based banking

The primary selling point of an app-based banking system is its user-friendly design. In contrast to mobile banking, the majority of traditional banking systems are full of the average corporate employee’s worst nightmare: complicated procedures and piles of paperwork.

Mobile banking applications allow individuals to easily control their accounts through intuitive interfaces that are thankfully lacking in complexity. Factors such as personalized dashboards and real-time notifications allow a user to automate important tasks for an individualized level of convenience. Apps such as NerdWallet have built-in budgeting features that automatically categorize the user’s various expenses.

Additionally, app-based banking can result in a noticeable reduction in extra fees. Most of these platforms operate with fewer overhead costs, allowing them to minimize and, in some cases, exterminate fees such as account maintenance charges, overdraft penalties and international transaction fees. Ally Bank, a popular choice for digitally savvy individuals, provides checking and savings accounts without monthly maintenance fees or minimum balance requirements; as an added perk, users’ checking accounts earn interest, and customers have access to over 75,000 fee-free ATMs.

Within app-based banking, instant peer-to-peer payments, investment options and loan services have become available in a singular package. For many users, this bundled offer of convenience, affordability and functionality is a clear reason for choosing mobile apps as their primary financial tool.

Along with helping consumers access and manage money responsibly, mobile banking has the immense potential to help underbanked populations improve their economic status. By providing credit in underserved markets and furthering the widespread adoption of mobile banking solutions, financial services can become more inclusive and accessible for a wide range of customers.

Banking evolves

The growth of digital banking has created a world where traditional banks must learn to contend with intense competition from their mobile counterparts. This transformation is noticeable on multiple levels, including a greater emphasis on technological innovation.

An increasing number of banks are seeking to use artificial intelligence to improve their customer service; these tools include everything from fraud detection in real time to personalized recommendations and the automation of normal customer interactions to reduce costs while increasing efficiency.

The kinds of partnerships traditional financial institutions are pursuing could lead to a new frontier of development for both conventional and digital banks. These partnerships help the banks provide modern solutions to meet their customers’ evolving needs. By embedding the services offered by fintech onto their platforms, these banks can close the gap between their traditional systems and the fast-paced needs of app-based banking clients.

In their quest to compete, banks are strongly investing in digital-first approaches. These approaches involve upgrading core infrastructure to support cloud-based systems and to meet modern-day demand. In essence, traditional banks seek to offer convenient online and mobile banking to engage customers in their devices while simultaneously testifying to the tried-and-true reliability inherent in the long-established banking system.

The future of banking will emerge as a hybrid model that marries traditional and innovative digital services. By incorporating both features into one, this approach will offer a custom-tailored service complete with new technology. The regulatory frameworks will also evolve, seeking to combine innovation with customer protection within a growing economic and financial environment.

Overall, the conventional bank must leverage data analytics and AI to understand customers’ needs and provide subsequent solutions. The convergence of technology, collaboration and customer orientation will shape the future of banking as it does its best to keep up in a digital-first world.

The future of finance

Undeniably, app-based banking is changing the financial sector and promising improved convenience and cost-effectiveness. These platforms continue to change how people manage their money while traditional banks undergo a new level of transformation to compete.

The future of banking is hybrid — a balanced blend of the reliability of traditional institutions with the innovation of fintech solutions. This allows the industry to embrace technology, collaborate and take a customer-centric strategy to ensure that banking becomes an inclusive process for all.

The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

Best Banks for Travelers 2025

lisa.gerstner@futurenet.com (Lisa Gerstner) — Tue, 30 Jul 2024 13:21:41 +0000

Are you looking for a better bank? You’re in the right place. With the help of Curinos, a financial-data provider, we’ve analyzed accounts at 40 financial institutions, evaluating them based on criteria including fees, minimum balance requirements, yields and the availability of extra perks, such as free checks or financial planning services. (For more on how we judged the contenders, see the methodology below.)

For frequent travelers, you may be drawn to these accounts for features such as fee-free ATM access and waived currency-conversion charges. And even if you’re not a jet-setter, you may find these options enticing.

To help you make the most of your money while on the move, we’ve highlighted the best banks for travelers offering features such as low foreign transaction fees, wide ATM access and solid customer service.

Bank of America

Standout account: Bank of America’s Preferred Rewards program layers on more benefits as your balance grows.

Where it is: About 3,700 branches in nearly 40 states and Washington, D.C.

Bank of America takes honors thanks to its Preferred Rewards program, which offers benefits that increase along with your three-month average daily balance in combined Bank of America deposit accounts and Merrill investment accounts.

The program includes four tiers: Gold, for balances of $20,000 to less than $50,000; Platinum, for balances of $50,000 to less than $100,000; Platinum Honors, for balances of $100,000 to less than $1 million; and Diamond Honors, for balances of $1 million or more.

With the Gold tier, for example, perks include a waiver of monthly maintenance fees on up to four eligible checking and savings accounts; free standard checks, incoming wire transfers and stop payments; and a 25% bonus on rewards you earn with an eligible Bank of America credit card. You also get an interest rate discount of 0.25% on a Bank of America auto loan and a $200 discount on a mortgage origination fee.

If you qualify for the Platinum Honors tier, you get additional benefits, including a 20% boost on the interest rate you earn with the bank’s Advantage Savings account, a 0.5% rate discount on an auto loan, a 75% bonus on rewards earned with a BofA credit card, a $600 discount on a mortgage origination fee, and reimbursement of out-of-network ATM surcharges. For more on the perks that come with each tier, go to www.bankofamerica.com/preferredrewards.

Citibank

Standout account: The Citigold banking package offers plentiful perks, including wealth management services, fee waivers and access to special cultural events.

Where it is: About 650 branches in the U.S., with many in the Chicago, Los Angeles, New York City, Miami, San Francisco and Washington, D.C., metro areas.

Citibank’s Citigold program offers a host of alluring benefits. To qualify, you must keep a combined balance of at least $200,000 in eligible deposit, retirement and investment accounts. Clients get access to a wealth management team, who offer investment guidance and financial planning services.

You also enjoy perks such as the Citigold Culture Pass, which provides free tickets to the New York Botanical Garden, Guggenheim Museum and the Museum of Modern Art. Other lifestyle benefits include private dinners with top chefs and VIP access to music and theater events.

Relax or meet with financial professionals at Citigold lounges — you’ll find them in a handful of U.S. cities, as well as a few international locations. Each year, get up to $200 in reimbursement for certain subscriptions and memberships, including Amazon Prime, Costco Wholesale, Hulu, Spotify Premium, TSA Precheck and Global Entry.

Citigold customers pay no monthly service fees for a checking or savings account, and they get unlimited reimbursement of global out-of-network ATM fees. Citigold also waives foreign-exchange fees on debit card purchases and ATM withdrawals, and it provides complimentary online wire transfers, standard checkbook orders, stop payments and money orders.

If your combined account balances total at least $1 million, you qualify for Citigold Private Client, which provides access to enhanced benefits, such as advanced wealth planning services and up to $400 in annual subscription rebates.

For more on the benefits that Citigold offers, visit https://citigold.citi.com. And to get additional details on Citigold Private Client, go to https://citigoldprivateclient.citi.com.

Methodology

With data from Curinos, a financial-data provider, as well as from financial institutions and other sources, we evaluated 13 national banks, 14 internet banks (including online accounts from brokerage firms) and 13 credit unions. We reviewed checking accounts, savings accounts, money market deposit accounts and certificates of deposit from each institution.

We looked at interest rates; minimum deposit and balance requirements; monthly maintenance fees and the ease of waiving those fees; ATM benefits, such as waived or reimbursed fees for out-of-network withdrawals; free or discounted benefits, such as personal checks, cashier’s checks, paper statements and overdraft-protection transfers; overdraft fees and concessions, such as cushions; and online and mobile banking features, such as the availability of peer-to-peer payment services. Yields and other data listed in the article are as of early July.

Curinos LLC. Data is obtained from public sources; accuracy and completeness is not guaranteed. Curinos is not liable for reliance on the data.

Kiplinger's Best Banks

How the Tech Outage Impacted Banks and Finances

alexandra.svokos@futurenet.com (Alexandra Svokos) — Fri, 19 Jul 2024 15:25:04 +0000

A major tech outage impacted a variety of industries and services around the globe on Friday, causing problems for airports, hospitals, and some banks and financial institutions.

The outage stemmed from "a defect found in a single content update for Windows hosts," said CrowdStrike (CRWD) CEO George Kurtz, and was "not a security incident or cyberattack." The update defect meant problems for companies that use Microsoft, and impacts started as early as about midnight Eastern Time on Thursday, according to Microsoft. By early morning Friday, Microsoft had "reports of successful recovery."

Flights were disrupted and some European and Australian television broadcasters had issues going on air, the New York Times reported. 911 systems in a few states went down due to the issue. By late Friday morning, Eastern Time, repairs had begun and the disruptions were being repaired. For those impacted by delayed or canceled flights, there are ways to get refunded.

There have been concerns about the outage impacting banks and financial service. By and large, though, major financial service in the U.S. have reported they are running operationally, despite concerns for some of the best online brokers and trading platforms.

How banks and finances were impacted by the tech outage

Most major American banking systems and stock trading was largely unaffected by the glitch, but there were some impacts reported.

Charles Schwab posted on its website: "Due to a third-party, global, industry-wide issue, certain online functionality may be intermittently slow or unavailable. We’re actively monitoring the issue. Phone services may be disrupted and hold times may be longer than usual." A Kiplinger employee noted his Schwab account didn't seem to show price changes registering on stocks as of early Friday morning.

"TD was impacted by today's global technology disruption but we can confirm that the majority of our impacted systems, including online banking, have been restored," TD Bank told Kiplinger in a Friday afternoon statement, adding that teams are continuing to monitor the situation. In an earlier statement, the bank recommended customers visit a local TD bank or ATM for immediate banking needs.

Visa has not seen disruptions to its ability to process payments, and systems are operating normally, but it is "aware of reports of people being unable to make payments" and is investing the situation, a spokesperson told Kiplinger. Citizens Bank said in a statement it is "currently experiencing very limited impacts" and that tech teams are "fully engaged" to monitor the system and resolve any issues that come up.

KeyBank told Kiplinger it does not use CrowdStrike internally but is monitoring for impacts on third-party service providers. Raymond James, a Readers' Choice Awards full-service broker favorite, reported to Kiplinger that systems are operating normally. Interactive Brokers told Kiplinger all its systems "are currently 100% functional and operating normally."

Ally Financial confirmed to Kiplinger Friday afternoon that all systems are fully operational. Edward Jones told Kiplinger impacts "have been minimal."

Fidelity said it has not been impacted, and Vanguard told Kiplinger in a statement "there is no current impact to our products or pricing." Citi and Robinhood appeared to be operating normally. Zelle told Kiplinger it is "operating as normal."

A New York Stock Exchange spokesperson told Kiplinger "markets are fully operational."

The London Stock Exchange was running operationally with the exception of its news service, which was not able to publish news, Barrons reported. The service was in the process of repairs as of Friday morning, per Reuters.

Banks in South Africa had disruptions causing people to say they were unable to make payments with bank cards, and Bradesco, a Brazilian bank said digital services were unstable but ATMs were working normally, according to the Associated Press.

2024 Kiplinger Readers' Choice Awards Results

lisa.gerstner@futurenet.com (Lisa Gerstner) — Tue, 28 May 2024 20:44:09 +0000

The Kiplinger Readers’ Choice Awards aim to recognize and celebrate the best products and services in the personal finance arena. We asked you, our Kiplinger community, to help us name the products and services you think have delivered excellent value in the past year.

The survey results, which we’re sharing here in our second annual Readers’ Choice Awards, offer valuable insight into which providers shine when it comes to your everyday interactions and experiences with them. Our Awards recognize excellence in everything from credit cards, banks and brokers to insurers, tax software and financial apps. For each category, we’ve listed an overall winner that earned the highest score. We’ve also highlighted other products and services that earned above-average scores for various criteria we asked readers to assess.

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers’ Choice Awards Categories

Best Wealth Management

Readers rated wealth managers based on the quality of financial advice they received, the trustworthiness of the advisers, how likely they would be to recommend the firm to others and their overall satisfaction with the wealth manager.

The overall winner was J.P. Morgan Wealth Management. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best wealth management services winners.

Best Donor-Advised Funds

We asked readers to assess the donor-advised funds they use based on how suitable the investment options are, the likelihood they would recommend the fund to others and their overall satisfaction with the fund.

The overall winner was Fidelity Charitable. Read our full guide to Kiplinger Readers' Choice Awards 2024 best donor-advised funds to see all of the winners.

Best Cash Back Credit Cards

Many of those who use a rewards credit card prefer simple, straightforward rewards in the form of cash back. That's no surprise, given that a cash back credit card is the simplest and most effective way to earn credit card rewards. We asked respondents to rate their cards on the strength of customer service, how likely they would be to recommend the card to others and how satisfied they are overall.

Our overall winner was Fidelity Rewards Visa. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best cash back credit card winners.

Best Travel Rewards Credit Cards

These cards provide the greatest value to frequent travelers, who can redeem points or miles for flights, hotel reservations, car rentals and more. Some come with perks such as rental car insurance and access to airport lounges. Readers judged travel rewards credit cards on the strength of customer service, how likely they would be to recommend the card to others and how satisfied they are overall with the card.

Our overall winner was Capital One Venture X. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best travel rewards credit card winners.

Best Airline Credit Card Rewards Programs

Airline cards provide miles or points on purchases, which passengers can put toward flights. Readers evaluated airline card programs on customer service, how likely they would be to recommend the card program to others and how satisfied they are overall with the card program

Our overall winner was the Alaska Airlines credit card rewards program. Read our full guide to the Kiplinger Readers' Choice Awards 2024 airline credit card rewards programs winners.

Best Hotel Credit Cards Rewards Programs

Readers evaluated hotel card programs on customer service, how likely they would be to recommend the card program to others and how satisfied they are overall with the card program.

The overall winner was the World of Hyatt credit card program. Read our full guide to the Kiplinger Readers' Choice 2024 Hotel Credit Card Rewards Programs winners.

Best National Banks

These large brick-and-mortar institutions have a presence in many states, and they offer a range of products and services, including checking accounts, savings accounts, certificates of deposit and loans. We assessed readers’ overall satisfaction with their bank, their opinion of its customer service, and the likelihood they would recommend the bank to others.

Our overall winner was KeyBank. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best national banks winners.

Best Internet Banks

Survey respondents judged these institutions on customer service, how likely they would be to recommend the bank to others and how satisfied they are overall with the bank.

Our overall winner was Discover Bank. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best internet banks winners.

Best Full-Service Brokers

We asked readers to assess brokerage firms that offer a breadth of services, whether online, by phone, through in-person assistance at branches, or some combination. Readers rated the strength of their broker’s customer service, how likely they would be to recommend the firm to others and their overall satisfaction with the broker.

Our overall winner was Fidelity Investments. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best full-service brokers.

Best Auto Insurance Companies

Readers weighed in on their auto insurance provider based on how competitive the rates are, their experience with filing claims and how likely they would be to recommend the insurer to others.

Our overall winner was Erie Insurance. Read our full guide to see all the winners of the Kiplinger Readers' Choice Awards 2024 auto insurance companies.

Best Homeowners Insurance Companies

Readers assessed their homeowners insurance provider based on how competitive the rates are, how positive the experience has been when filing a claim and how likely they would be to recommend the insurance company to others. Several of the winners here are also winners in auto insurance, making it easier for you to select a bundled service with one outstanding company.

The overall winner was USAA. See Kiplinger Readers' Choice Awards 2024: Homeowners Insurance Companies to learn more about the companies you chose as winners.

Best Peer-To-Peer Payment Apps

Peer-to-peer payment apps have developed a wide reach as they have become faster and easier to use. Readers rated the P2P service that they use most based on ease of use, the likelihood they would recommend it to others and their overall satisfaction with the service.

Our overall winner was Apple Cash. Read our full guide to the Kiplinger Readers' Choice Awards 2024 best peer-to-peer payment apps.

Best Tax Software

We asked readers to rate their preferred tax-filing software based on ease of use, how likely they would be to recommend the service to others and overall satisfaction with the software.

Our overall winner was FreeTaxUSA. Read our full guide to the Kiplinger Readers' Choice Awards 2024 tax software winners.

How Readers Chose Their Winners

Kiplinger readers were invited to take the Readers’ Choice Awards survey on Kiplinger.com between February 20 and March 15, 2024. The survey was fully completed by 4,528 people.

The survey asked respondents to choose the financial product or service that they most frequently use in 13 categories: full-service brokerage firms, wealth managers, donor-advised funds, cash-back credit cards, travel rewards credit cards, airline credit card rewards programs, hotel credit card rewards programs, national banks, internet banks, auto insurers, homeowners insurers, tax software and peer-to-peer payment services. (Because of a scripting error, the survey did not collect scores for Wells Fargo in the national banks category. We apologize for the omission.)

We asked readers to rate each provider they selected on a scale of one to 10 based on a few criteria. In many categories, readers rated the strength of customer service, how likely they would be to recommend the product or service to others, and how satisfied they are overall with the provider. In some categories, we included more nuanced criteria. With wealth management firms, we asked respondents to rate the trustworthiness of a firm’s advisers and the quality of its financial advice. For donor-advised funds, respondents evaluated the suitability of investment options. For peer-to-peer payment apps and tax software, respondents evaluated ease of use, and for auto and home insurance companies, readers judged the competitiveness of rates and strength of the claims experience.

We calculated an average (mean) score for each criterion with each provider. We also calculated an overall mean score for all providers for each criterion we asked readers to judge. We compared individual provider mean scores with the overall mean, and the three highest-scoring providers that had a score above the overall mean won an “outstanding” accolade; in cases of a tie, more than three providers are named, and if fewer than three qualifying providers achieved an above-average score, only those providers are named “outstanding.” In each category, providers are generally listed in descending order by the number of criteria for which they received the “outstanding” designation — so a product or company that is deemed “outstanding” in three areas, for example, is listed before a provider with one or two “outstanding” awards.

Kiplinger Readers' Choice Awards Categories

Kiplinger Readers' Choice Awards 2024: Peer-to-Peer Payment Services

ellen.kennedy@futurenet.com (Ellen B. Kennedy) — Tue, 28 May 2024 18:20:43 +0000

About the Kiplinger Readers’ Choice Awards

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers' Choice Awards: Peer-to-Peer Payment Services

OVERALL WINNER: Apple Cash

Outstanding for:

Ease of use
Most recommended
Overall satisfaction

Readers compliment Apple Cash on its security features and ease of use. Those who have an Apple device (such as an iPhone, iPad or Apple Watch) can use Apple Cash — a reloadable payment card in Apple’s Wallet app — to send and receive money free with other individuals who have compatible devices. You can send payments through the Messages or Wallet app.

“Very easy to use and convenient,” one reader says.

If you're in the Apple ecosystem, read our review of Apple Cash's companion for purchases, the Apple Card.

PayPal

Outstanding for:

Ease of use
Overall satisfaction

PayPal, the payment app that started it all, is exceptional for its size and reach. You can send money to other people within the U.S. for free with PayPal if you draw the money from your bank account, your PayPal balance or an Amex Send account. The app charges 2.9% if funds are drawn from a debit or credit card.

Zelle

Outstanding for:

Most recommended
Overall satisfaction

Readers like that Zelle is free, facilitates speedy transfers and works directly through banks. “I like that it transfers funds instantly and from bank to bank. No need to have funds in yet another app,” says one reader. In a transaction, at least one user (the sender or receiver) must have access to Zelle through their bank or credit union.

Kiplinger Readers' Choice Awards 2024 Awards Categories

Kiplinger Readers' Choice Awards 2024: Internet Banks

ellen.kennedy@futurenet.com (Ellen B. Kennedy) — Tue, 28 May 2024 14:33:28 +0000

About the Kiplinger Readers’ Choice Awards

By voting, our community has helped us form our guide to the very best financial products. These are the products and companies that you think stand out from the crowd.

Kiplinger Readers' Choice Awards: Internet Banks

Internet banks operate entirely or mostly online. They typically offer higher yields and lower fees than their brick-and-mortar counterparts because they have lower overhead costs. Survey respondents judged these institutions on customer service, how likely they would be to recommend the bank to others and how satisfied they are overall with the bank.

OVERALL WINNER: Discover Bank

Outstanding for:

Customer service
Most recommended
Overall satisfaction

Discover Bank customers who responded to our survey gave the bank high marks across the board and were especially pleased with its customer service. One reader noted that Discover is “very easy to deal with.”

Readers also appreciate the bank’s competitive interest rates. One commented, “their service is great, and interest is over twice what my local bank gives on savings and CDs.” Discover’s savings account recently offered a 4.25% yield, and a 12-month CD yielded 4.7%. With Discover’s free Cashback Debit checking account, you get 1% back on up to $3,000 spent each month with your debit card.

Charles Schwab Bank

Outstanding for:

Customer service
Most recommended
Overall satisfaction

Readers commend both the checking and savings accounts from the internet banking arm of broker Charles Schwab. “Best place to bank hands down,” says one respondent.

The Schwab Bank Investor Checking account, open to Schwab One brokerage account customers, charges no monthly fee and provides unlimited reimbursement of out-of-network ATM fees worldwide. Plus, the account yields 0.45%. Schwab Bank also offers the Investor Savings account, which has no monthly fee, yields 0.48% and provides unlimited rebates of ATM fees internationally, too. The bank accounts complement Schwab’s brokerage services nicely. “The way it’s linked to Schwab brokerage is just great and makes it seamless to transfer funds,” one reader says.

Ally Bank

Outstanding for:

Most recommended
Overall satisfaction

“It is simple to find information and set up accounts directly online, and Ally now offers investment accounts and lending instruments,” one reader says of Ally Bank. The checking and savings accounts come with no minimum deposit or monthly fee, and the savings account shines for its 4.2% yield.

You can also take advantage of tools to help you save for specific goals. “I really enjoy the Buckets options, where I can split my savings into different buckets I make,” writes one reader.

USAA

Outstanding for:

Customer service

If an internet bank could win the loyalty award, USAA would probably take top honors; several readers noted that they had banked with USAA for 40 or even 50 years or more. Survey respondents noted USAA’s dedication to customer service. “100% professional, courteous, live customer service, always asking us how it can do better,” a respondent says.

The bank caters to current or former members of the military and their spouses and children. USAA has a whopping 100,000 ATMs worldwide, and the bank will reimburse up to $10 per statement cycle for out-of-network ATM fees.

Kiplinger Readers' Choice Awards Categories

Is it Time to Switch Banks?

kiplinger@futurenet.com (Sandra Block) — Wed, 22 May 2024 11:30:34 +0000

Large banks provide vast ATM networks, advanced technology and a wide array of products. But when it comes to interest rates on savings accounts, they’re often overshadowed by small banks and credit unions. While a number of local institutions and internet banks recently offered rates of 5% or more on savings accounts and money market deposit accounts, interest rates on some large banks’ accounts have barely budged since the Federal Reserve Board started hiking short-term rates in March 2022.

A 2023 research paper published by the UCLA Anderson School of Management concluded that customers of large banks are willing to accept low rates on their savings in exchange for other benefits large banks provide. Small banks are compelled to offer higher rates on deposits in order to stay competitive, the economists found.

The economists also concluded that customers of small banks are more price-sensitive than large-bank customers, who typically have higher incomes and live in urban areas. Small banks and credit unions tend to charge lower fees for monthly account maintenance and overdrafts, too.

Large banks have also benefited from inertia, says Ken Tumin, founder of DepositAccounts.com, a website owned by LendingTree. Many customers of large banks don’t pay attention to what they’re earning on their savings after they open an account, providing little incentive for banks to raise rates, he says.

If you’re looking for a higher yield on your savings, check out accounts from internet banks, which offer many of the best deals. These institutions can offer extremely competitive rates because they don’t have to spend money on brick-and-mortar branches.

You can compare current rates on savings accounts by using the tool below.

The Fed left interest rates unchanged at its March meeting but signaled that it will likely cut rates later this year. If that happens, institutions of all sizes will lower their rates, too. Look for rates on high-yield online accounts to fall first, Tumin says. Some online banks have already reduced rates on certificates of deposit in anticipation of a Fed rate cut.

Fortunately, there’s no need to pledge fidelity to one bank or credit union. You may choose, for example, to locate your checking account at a small bank or credit union that doesn’t charge a monthly fee and invest your emergency savings in a high-yield online savings account.

Choosing the right credit card

Generally, interest rates on credit cards from small and medium-size banks and credit unions are lower than rates on cards issued by large financial institutions, even for borrowers with good credit, according to a recent analysis by the Consumer Financial Protection Bureau. For example, the median interest rate for people with good credit was 28.20% for large credit card issuers compared with 18.15% for small issuers, according to the CFPB.

While that’s a significant difference, carrying a balance on a credit card with an 18% interest rate is no bargain, says Ted Rossman, senior analyst for CreditCards.com. Before March 2022, when the Federal Reserve Board embarked on a series of rate hikes in an effort to throttle inflation, it was possible to find credit cards that charged as little as 6% or 7%, but that’s no longer the case, he says.

Use the tool below to compare fast, personalized credit card offers.

Instead of hunting for a low-rate credit card, Rossman says, endeavor to pay off your card’s balance every month so that you avoid interest altogether. Consumers who don’t carry a balance can come out ahead with the numerous perks that rewards credit cards from big banks offer, such as frequent-flier miles and cash back on a variety of purchases. (Kiplinger keeps a list of our favorite rewards cards).

While the CFPB found that credit cards from large banks were more likely to charge annual fees, there are plenty of major credit cards — including some with generous rewards structures — that charge no annual fee.

Big banks are also more likely to offer balance-transfer deals with an interest rate as low as 0% for a specific period. While these offers provide a way to reduce the interest you pay on your debt, they make sense only if you pay off the balance before the 0% window expires. Otherwise, you’ll likely end up paying a double-digit rate on the remaining balance.

How to break up with your bank

Switching to a bank or credit union that offers a higher yield on your savings could significantly increase the amount of interest you earn. However, the process may take several weeks.

What you need to do:

Open the new account before closing the old one. You may be able to do this online. Make sure your initial deposit is large enough to avoid low-balance fees.
Contact your employer (or the Social Security Administration, if you’re receiving benefits) and arrange to have direct deposits switched to your new account. Make sure you include all accounts, such as TreasuryDirect, that deposit funds periodically.
Contact all providers, such as utilities and streaming services, that debit your account, and provide them the information for your new account. If you use your bank’s bill-pay service, cancel the bill payments at your previous bank’s site and enroll at your new bank’s site.
Make sure all automatic payments and outstanding checks have cleared before closing your old account.

Note: This item first appeared in Kiplinger's Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.

Apple Card Review: Should You Get One?

ellen.kennedy@futurenet.com (Ellen B. Kennedy) — Fri, 12 Apr 2024 16:25:04 +0000

We may get compensation if you visit partner links on our site. We may not cover every available offer. Our relationship with advertisers may impact how an offer is presented on our website. However, our selection of products is made independently of our relationship with advertisers.

The Apple Card seems like a sweet deal for the iPhone crowd, with some caveats. To get the greatest value from this credit card, you'll need to pair it with the wallet app called Apple Pay and an Apple device to make purchases, such as an Apple Watch, iPhone or iPad.

In exchange for your fealty to Apple, you get 3% cash back on purchases of Apple and select other products, 2% back on most purchases, and 1% back if you use your card alone, without using Apple Pay. You'll also receive 3% unlimited daily cash when using Booking.com for prepaid travel or making ChargePoint purchases.

By linking your Apple Cash wallet with a high-yield Apple Savings account (with an attractive interest rate of 4.1%), you can start saving your cash back seamlessly at a competitive interest rate.

That said, the Apple Card has been grievously mismanaged by Apple and its issuing partner, Goldman Sachs. The Consumer Financial Protection Bureau (CFPB) recently fined the companies $89 million for mishandling Apple Card transaction disputes. The Government agency also cited the companies for misleading iPhone purchasers about interest-free payment options.

So, should you get the Apple Card? I would recommend waiting until Apple unwinds its relationship with Goldman Sachs and institutes better internal safeguards for credit card customers. And though the Apple Card is attractive and extremely popular, it didn't make the cut in Kiplinger's analysis of the best rewards credit cards of 2024. I would instead recommend looking for a cash back or travel rewards credit card that delivers the best bang for your buck.

Apple Card overview

Apple Card

This card is designed for fans of Apple products. When linked with Apple Pay, the card gets 3% cash back from Apple Store and eligible Booking.com and ChargePoint purchases, Uber and other merchants, 2% back at all other merchants that take Apple Pay and 1% back when using the card alone. Cash rewards are deposited daily in an Apple Cash or Apple Savings Account.

Apple Savings account rate: Recently 4.1% APY.

Annual fee: None.

Sign-up bonus: None.

Interest rates: Variable APR of 18.74% to 28.99%.

Pros

Simplicity. With no points to track or travel miles to redeem, this card can save you time and brain cells.
Encourages saving. Apple does a good job of helping you save money. When you elect to have cash back deposited in an Apple Savings account, your brain may be less likely to think of the cash as free money to spend. The Apple Savings account recently had an interest rate of 4.1% APY. While there are better high-yield savings accounts available, the rate is still well above the national average.
No waiting for cash back. It's deposited every day into your Apple Cash or Apple Savings account.
Travel rewards: If you use your Apple card with Apple Pay on prepaid travel through Booking.com, you earn an unlimited 3% Daily Cash. You'll also earn an unlimited 3% Daily Cash for all ChargePoint purchases.
Rewards stacking. By combining your Apple Card with Apple Pay and the loyalty programs of participating merchants, you can score some great rewards. For example, get 3% cash back when you buy gas, car washes or convenience items at Exxon Mobil stations and earn Exxon Mobil Rewards+ points, which you can redeem against a future purchase.
No fees. No annual fee, late fee or foreign transaction fee.
Happy customers. The Apple Card won Best Co-Branded Credit Card for Customer Satisfaction with No Annual Fee in the J.D. Power 2023 U.S. Credit Card Satisfaction Study. And the Apple Cash payment app won first in its category in the 2024 Kiplinger Readers' Choice Awards.
Security. The card and payment app are designed for enhanced security.
Easy on the credit score. You can apply for the card and see your credit limit and interest rate without a hard pull on your credit. If you enroll, however, your credit score will be impacted, as is customary when applying for a card.

Cons

Failure to follow consumer financial laws. Apple and bank issuer Goldman Sachs were fined $89 million in October 2024 for violations related to the Apple Card. This is a serious issue. Apple will likely improve its internal safeguards to avoid problems like this in the future, but is the card worth taking this gamble?
No welcome or sign-up bonus. Some of the best credit card bonuses exceed $1,000 and other 2% flat rate cash back cards like Apple Card offer $200 bonuses.
No purchase protection. Unlike other credit cards, like those in the Visa Signature line, this card does not come with purchase protection (typically 90 to 120 days of insurance against theft or damage, depending on the card). That's a real consideration if you plan to buy a laptop or iPhone with your card for the 3% back rate. iPhones, for example, come with a 90-day warranty. After 90 days, you can buy Apple Care insurance for up to $149 for two years of coverage. Credit cards like the Chase Freedom Flex, on the other hand, offer smartphone coverage up to $600 for free.
Encourages spending. Yes, we just said that the card can help trick your brain into saving money, but it can also entice you to spend more. That's because people spend more money — almost 10% more on average — when using mobile payments than when paying a physical credit card. This type of "frictionless" payment is just so easy, you don't have as much time to pause and think about your spending.
Not accepted everywhere. Most merchants accept Apple Pay. However, Walmart, Home Depot, Hobby Lobby, Applebee's and Arby's.
Uncertain future banking partner. The Apple Card partners with Goldman Sachs, but that relationship soured back in 2023. It's unclear which, if any, financial institution will step in to sponsor the card, or if any rewards rates will change.

Current 3% back partners

Here are the recent merchants that pay 3% back when you pay with your Apple Card with Apple Pay. Note that these partners may change.

(Image credit: Apple)

Who should get the Apple Card?

The card is best for people who have had an iPhone for a while and are committed to staying within the Apple product ecosystem. Better yet, if your spouse or family are also on iPhones, you can share the card with your family. You can share the card with another adult as a co-owner. And you can sign up anyone aged 13 to adult as a participant (similar to an authorized user). When used thoughtfully, credit cards for teens or young adults can help them build credit and learn the ropes of managing a credit card with some guardrails in place.

Rewards cards dos and don'ts

As with any rewards credit card, be sure to weigh these benefits against fees — although there are happily none in this case — and make sure you understand how to use the card effectively.

In addition, while reward credit cards are great if you use them wisely, always pay them off in full and on time each month to avoid interest, which can dwarf any rewards you earn. Don't change your spending habits to chase credit card rewards. That's a slippery slope that can lead to overspending.

If this is your first foray into credit cards, or you just want a refresher, make sure you know how to choose a credit card. And ensure you understand what counts as a good credit score. You can also use this tool to find the best card for you.

As an independent publication dedicated to helping you make the most of your money, the article above is our view of the best deals and is not the opinion of any entity mentioned such as a card issuer, hotel, airline etc. Similarly, the content has not been reviewed or endorsed by any of those entities.

Capital One/Discover: What's In Their Wallet For You?

keerthisvedantam@gmail.com (Keerthi Vedantam) — Thu, 28 Mar 2024 13:28:53 +0000

If two of the country’s largest credit card issuing banks merge, will the combination create a behemoth that limits consumer choice and pushes up card rates? Will it benefit the public or just the new bank?

Those are among the concerns of critics of Capital One’s $35.3 billion planned acquisition of Discover Bank, a deal that has continued to face considerable headwinds since it was announced last month.

The latest group to question the proposed merger is a coalition of 30 community, consumer, civil rights and public interest groups. In a March 21 letter to the federal agencies reviewing the deal, the group said the merger between the bank and payment processing network "presents unique anticompetitive considerations and potentially negative impacts on depositors and customers," who should have the chance to voice their concern.

The group — which includes the Consumer Federation of America, Consumer Reports, and the National Community Reinvestment Coalition (NCRC) — urged that a public hearing be held on the matter. It called on the Federal Reserve, the Office of the Comptroller of the Currency (OCC) and the Department of Justice (DOJ) to move quickly to provide a transparent review with ample opportunity for the public to engage and comment.

In a March 21 Reuters report, Capital One appears to be trying to quell at least some of those fears.

Per the report, which cites people familiar with the matter, the bank said the merger would not be problematic for credit card competition because, combined, the companies account for only about 13% of credit card purchasing volume, a metric that the bank likens to market share, according to the report.

The bank, in the report, also makes the point that the merger with Discover — a card issuer as well as payment network operator — would allow it to better compete against network giants Visa and Mastercard.

Capital One and Discover did not return calls for comment.

David Robertson, publisher of The Nilson Report, told Kiplinger last month that combining the two banks will have no impact on consumers but that, "in time, merchants could benefit because the new company could offer more competition to Visa and Mastercard.”

A network-level disruption is the "the big play that's going on here," according to a recent report by Lulu Wang, assistant professor of finance at the Kellogg School of Management. The disruption could come about, for example, if Capital One decides after the merger to move some of its card business from the Visa and Mastercard networks, to Discover's proprietary network, he said.

Wang noted that more consumers are using credit cards over cash these days and that the two banks command less than 20% of consumer card balances and about 10% of card spending. As far as consumer benefits, the deal may allow Capital One to issue rewards debit cards through the Discover network, products that Visa and Mastercard do not offer, he said in the report.

The power to 'extort' consumers — Sen. Hawley

The banks expect the merger to close in late 2024 or early 2025, pending shareholder and regulatory approvals. But whether it is actually completed remains an open question until, and if, it receives those approvals.

Soon after it was announced, several lawmakers raised red flags, objecting to what they said would be a combination that consolidates market power and harms consumers by pushing up credit card rates.

Sen. Josh Hawley (R-MO), who wrote to DOJ antitrust chief Jonathan Kanter last month, is among those calling for the deal to be blocked.

"This is destructive corporate consolidation at its starkest. If consummated, this merger will create a new juggernaut in the credit card market, with unprecedented powers to extort American consumers," Hawley said in the letter.

The day after the transaction was announced, Sen. Elizabeth Warren (D-MA) said in a post on X, the platform formerly known as Twitter, that it "threatens our financial stability, reduces competition, and would increase fees and credit costs for American families.”

Days later, Warren led a group of other Democratic lawmakers in calling for the Fed and OCC to block the merger. Combining the banks would consolidate the credit card market, create the nation's sixth-largest bank and limit customer choice, the group said in a letter.

Credit card rates at large banks are higher than those at small banks, according to a study last month from the Consumer Financial Protection Bureau (CFPB), which regularly surveys 150 credit card issuers nationwide. The study found that the 25 largest card issuers charge interest rates that were 10% higher on average than interest rates charged by smaller financial institutions.

A total of 15 issuers — including Capital One (fourth on the list) — have at least one product that has a maximum purchase APR over 30%, according to the CFPB study. The agency said it is working on improving competition in the credit card market.

New 'Junk Fee' Rule Caps Credit Card Late Fees At $8

Joey Solitro — Wed, 06 Mar 2024 14:00:01 +0000

The Consumer Financial Protection Bureau (CFPB) has finalized a rule that limits the typical credit card late fee from $32, to $8.

The rule, which was proposed in early 2022, closes a loophole exploited by large credit card issuers and applies to issuers with more than one million open accounts, the CFPB said. This translates into more than 95% of total outstanding credit card balances. Data shows that smaller issues tend to have lower rates and fees, it added.

Reducing the late fee to $8 will save consumers $10 billion a year, or an annual average of $220 for each of more than 45 million people, the Biden administration said in a statement today (March 5) in announcing several initiatives aimed at fighting junk fees.

The rule immediately met with criticism from several groups including the U.S. Chamber of Commerce, which said it plans on filing a lawsuit against the CFPB to block the rule.

"The agency’s final credit card late fee rule punishes Americans who pay their credit card bills on time by forcing them to pay for those who don’t," the Chamber said in a statement.

The CFPB move builds off of steps it has already taken in the banking sector as part of the administration's war on junk fees. In January, for example, the agency proposed curbing bank overdraft fees. It has also fined several financial institutions in the last year, such as Bank of America, over junk fees.

The final rule does not affect the ability of large credit card issuers to raise interest rates, reduce credit lines and take other actions to prevent late payments, the CFPB said. “In fact, the rule would increase the desire for credit card companies to facilitate on-time payment, since it would lower incentives to build a business model on late fees,” the agency added.

New strike force to fight unfair pricing

The administration also announced the launch of a new strike force, co-chaired by the Department of Justice and Federal Trade Commission, to crack down on unfair and illegal pricing tactics by corporations that “try to rip off Americans." The strike force will focus on key sectors including prescription drugs and health care, food and grocery, housing as well as financial services.

Why More People Are Using Small Banks And Credit Unions

Jamie Feldman — Thu, 15 Feb 2024 14:15:26 +0000

Getting a credit card from a larger bank sounds like a good idea. After all, some come with generous cash back rewards to help you save on everyday purchases.

However, larger financial institutions don't always have the best customer service, and people are starting to take notice, according to a recent study.

68% of national banks last year issued consumers their primary cards and have an even stronger lead among consumers who also bank with them, according to the study by PYMNTS Intelligence and Elan Credit Card. This, however, is a significant decline from the 76% that big banks issued in 2020, as shown in the study, which surveyed 2,088 U.S. consumers who earn more than $100,000 annually.

By contrast, credit unions and small banks — which still have relatively small market shares — have increased their shares over the same time period. Credit unions grew their share of primary credit cards from 6% in 2020 to 8.3% in 2023, while community banks increased theirs from 2.3% to 5.1% in the same time period.

The numbers aren’t massive, but they certainly indicate some shifting preferences, especially, as the study states, national banks trend in the opposite direction. In addition, one in four survey participants said they are most likely to use either a credit union or community bank for their next credit card application.

“Though modest in absolute terms, these shifts represent sizable relative gains,” PYMNTS and Elan say in the study.

The appeal of going small

There are a number of reasons to consider joining a credit union or community bank, especially during unsettling financial times.

Credit unions usually tout lower interest rates than national banks. The reason for this is that they're member-owned, meaning everyone who has an account with them is a partial owner.

Because many don't pay out to shareholders, they can keep their rates lower, giving them an edge on larger financial institutions. And it could save you hundreds of dollars over the life of the loan in interest fees.

It can also help you save more money quicker, as they tend to have higher rates of return on high-yield savings accounts and CDs.

Banking locally also ensures that your money stays in your community. As shopping and sourcing locally increase in popularity, perhaps so too does banking locally in the interest of community.

According to the study, key features that participants valued most — and that credit unions and small banks could improve on — include rewards and cash-back programs.

If you’re interested in exploring credit unions as an option for your next card, some of Kiplinger’s top picks include Alliant, which offers low fees and attractive CD options, as well as Bellco and Connexus, each for their ranges of free checking account options and savings yields. You can learn more about each one here.

The bottom line

The appeal to going local for banking is slowly growing. With one in four considering community banks or credit unions for their next credit card, it indicates a shift in the way some view smaller financial institutions.

Credit unions do an exceptional job offering lower interest rates on loans and higher rates on savings and CDs. The only drawback to going with smaller options like community banks is you might miss out on better cashback rewards offered by larger banks. Therefore, prioritize what you need from your next credit card or savings account before making the switch.

Manhattan DA Urges Payment Apps To Improve Security Features

Jamie Feldman — Mon, 29 Jan 2024 14:00:34 +0000

Following a growing number of incidents of fraud and theft in New York City involving payment apps Venmo, Zelle and Cash App, Manhattan District Attorney (DA) Alvin Bragg is calling on executives at these apps to increase customer security.

Bragg sent letters to the heads of those apps on January 22 and requested meetings with each of them, saying that the problem extends beyond NYC to the rest of the country.

“These crimes involve an unauthorized user gaining access to unlocked devices and then draining bank accounts of significant sums of money, making purchases with mobile financial applications, and using financial information from the applications to open new accounts,” he said in the letter.

"The ease with which offenders can collect five- and even six-figure windfalls in a matter of minutes is incentivizing a large number of individuals to commit these crimes, which are creating serious financial, and in some cases physical, harm to our residents," he said.

Apple tests new safeguards

Citing Apple’s new beta Stolen Device Technology, which when activated requires someone to use FaceID in addition to their password to access sensitive information such as stored passwords, Bragg said that more safeguards like these are needed.

How to choose the right payment app can be daunting, however, especially when considering security.

During the last five years, the peer-to-peer payment services market has grown "exponentially" to almost $1 trillion in payments across the most-used apps, Bragg said. "As these payment networks have become ubiquitous, frauds and scams have proliferated, with fraud claims tripling between 2020 and 2022, costing consumers hundreds of millions of dollars each year."

He offered a number of suggestions for the companies to implement to increase security, such as:

Adding a second and separate password for accessing the app on a smartphone as a default security option.
Impose default lower limits on the monetary amount of total daily transfers.
Require wait time and secondary verification of up to a day for large monetary transactions.
Better monitor accounts for unusual transfer activities and ask for confirmation when suspicious transactions occur.

Federal oversight on the way?

Payment apps may face federal scrutiny under a new rule proposed from the Consumer Financial Protection Bureau (CFPB). Last November, the agency proposed that apps including PayPal, Apple Pay and Google Pay be held to the same security standards as their larger banking counterparts.

The rule, which would apply to companies handline more than five million transactions annually, would subject the apps to CFPB supervision in two main areas: Compliance with federal consumer protection laws, and Competition with banks and credit unions.

The move followed a CFPB report last June finding that storing money in popular payment apps carries hidden risks as they may lack the federal insurance coverage that protects bigger banks and credit unions during a crisis.

As Kiplinger previously reported, there are a number of ways to more safely use payment apps and protect yourself from potential hacks or scammers. These include:

Protecting your account with a pin or multi-factor authentication.
Setting up notification alerts for transactions on your account.
Confirming the identity of anyone you send payment to before doing so.

Also, if you have a complaint or concern about a digital wallet or payment app, you can submit your comments on the CFPB site.

Bank Overdraft Fees Could Soon Drop Significantly

Jamie Feldman — Wed, 17 Jan 2024 22:50:31 +0000

The Consumer Financial Protection Bureau (CFPB) has announced a plan to curb bank overdraft fees, which it says cost American consumers billions of dollars annually.

Under the proposal, some overdraft fees could drop to as low as $3.

“The proposed rule would allow financial institutions to charge a fee in line with their costs or in accordance with an established benchmark,” the consumer watchdog agency said. The CFPB has proposed benchmarks of $3, $6, $7 or $14 and is seeking public comment on the amount.

Overdraft fees from major financial institutions can reach as high as $35. Thanks to a loophole in the 1968 Truth in Lending Act, which protects customers from unfair credit card practices, overdraft loans were exempt from providing disclosures to customers whose accounts were overdrawn, the CFPB said. This was during a time when people used paper checks and overdraft was less ubiquitous.

"Today, we are proposing rules to close a longstanding loophole that allowed many large banks to transform overdraft into a massive junk fee harvesting machine," CFPB Director Rohit Chopra said.

The CFPB hopes to eradicate the outdated loophole, which it says provides massive profits to the banks at the expense of customers. The news comes after a December 2023 CFPB report finding that most Americans are still surprised by overdraft fees.

President Biden, who has made eliminating junk fees a tentpole of his presidency, said in a January 17 statement that the rule will do more to help Americans deal with their finances.

“For too long, some banks have charged exorbitant overdraft fees — sometimes $30 or more — that often hit the most vulnerable Americans the hardest, all while banks pad their bottom lines. Banks call it a service — I call it exploitation," he said. "Today’s proposal would cut the average overdraft fee by more than half, saving the typical American family that pays these fees $150 a year.”

CFPB has worked to lessen the blow of overdraft fees before. In December 2023, it ordered Atlantic Union Bank to refund consumers $5 million in illegal overdraft fees. In 2022, banks including Wells Fargo, Bank of America and Capital One eliminated overdraft fees. The CFPB has also worked to slash credit card late fees.

Convenience over profit

Under the proposal, large financial institutions, including the nation's 175 largest depository institutions, would be required to treat overdraft loans like credit cards and other loans, meaning they will need to provide clear disclosures about what’s involved with customers.

The CFPB said it wants to get overdraft fees back to the place they were during the checks era — a matter of convenience, not profit.

You can submit comments

Comments on the proposal are due by April 1. You can submit them at the Federal eRulemaking Portal by following the prompts for submitting comments.

You can also send an email to: 2024-NPRM-OVERDRAFT@cfpb.gov and include Docket No. CFPB-2024-0002 or RIN 3170-AA42 in the subject line of the message.

Earn 5.50% APY on Your Savings in 2024 With This High-Yield Account

erin.bendig@futurenet.com (Erin Bendig) — Tue, 09 Jan 2024 17:34:28 +0000

Looking to maximize your savings in 2024? Opting for the right savings account can help boost your savings with no extra effort required. So, if one of your New Year’s resolutions is to save more this year, you could benefit from putting your cash into a high-yield savings account with a competitive APY.

One account in particular that can help grow your savings risk-free is Milli Bank’s mobile savings account, available on both iPhone (iOS 15.0 or later) and Android devices (Android OS 8.0 or later). Milli's high-yield savings account offers a 5.50% APY and has no additional fees or minimum balance requirements. This is one of the highest APYs on the market.

In the app, Milli allows users to organize savings into personalized "savings jars" that each earn interest. These can be a useful tool if you're looking to start budgeting and set aside money gradually for different goals or expenses. Milli accounts, including savings jars, are FDIC insured up to $250,000. Milli is a division of First National Bank of Omaha (FNBO).

On the down side, Milli has been hit with some customer service complaints noting that the app can be slow to clear money transferred from your bank and Milli can be slow to respond to customer complaints. While a market-leading rate might be the most important factor for you, other considerations are customer service, the ease of signing up and clear communication on the process. Please note all of the accounts and products we cover are FDIC-insured.

Here are several pros and cons of the account and platform:

Pros	Cons
High APY (5.50%)	No phone support available (only mobile chat and email)
Network of 55,000+ ATMs	No physical locations, mobile access only
No fees	Money transfers may take a while to clear
No minimum balance requirement	Does not accept mobile check or cash deposits
Offers additional savings/budgeting tools

Why open a CD?

Because the cash saved in them is easily accessible, high yield savings accounts are good alternatives to CDs if you don't want your money tied up for long periods of time. Unlike CDs, there's no maturity date on a high yield savings account — you can withdraw funds at any time. For this reason, they make great savings vehicles for short term savings goals or emergency funds. Just keep in mind that rates on high-yield savings accounts are not fixed, meaning the rate you earn can fluctuate with the market.

When you compare CDs vs. high-yield savings accounts, you'll also see that high-yield savings accounts are more suited for individuals looking to gradually save by making regular deposits into an account. CDs, on the other hand, require a singular up-front payment upon opening the account.

Savings in 2024

Since March 2022, the Federal Reserve raised the federal funds rate 11 times in an effort to combat inflation by driving spending down as consumers realize higher commercial interest rates on mortgages, credit card APRs and other loans. The upside to this was that when the federal funds rate increased, interest rates on high-yield savings accounts and CDs did too. However, at the latest policy-setting meeting, the Federal Reserve held interest rates steady yet again. This third consecutive pause in rate hikes means the Federal funds rate, a key bank lending rate, will remain at a target range of 5.25% to 5.5%. Furthermore, the Federal Reserve also sees three interest rate cuts in 2024, and has lowered its median interest rate projection for the end of 2024 to 4.6%.

Savings rates, particularly CD rates, have been falling since the Federal Reserve began holding interest rates steady, and they will continue to drop further if the Federal Reserve cuts interest rates this year, as expected. For this reason, it’s a smart idea to take advantage of rates now, while they’re still high.

You can use our tool below — powered by Bankrate — to compare high-yield savings accounts today.

Walmart Adds Buy Now, Pay Later Option at Self-Checkout Kiosks

Joey Solitro — Thu, 21 Dec 2023 22:15:55 +0000

Walmart has expanded its partnership with fintech company Affirm to offer a buy now, pay later (BNPL) option at self-checkout kiosks in more than 4,500 stores.

The BNPL option, which can also be used on Walmart's website and app as well as at its vision and auto centers, allows customers to pay monthly and over time, Affirm said in announcing the deal.

Walmart and Affirm first announced a partnership 2019 to add a BNPL option at Walmart Supercenters nationwide and at its website.

Many major brands have added BNPL loans at checkout in recent years, including Google Pay, which recently announced plans to add BNPL options via partnerships with both Affirm and Zip next year.

Pat Suh, senior vice president of revenue at Affirm, said in a statement that Affirm's recent research found that 54% of Americans are looking for retailers to offer BNPL options and that 76% of consumers "would either delay or not make a purchase without Affirm.”

How to use Affirm at self-checkout

If you choose to use Affirm at a self-checkout kiosk, bring up the Affirm app or Affirm’s Buy In-Store, Pay Later page on your phone and follow these steps:

Enter the purchase amount. Eligible items cost from $144 to $4,000.
Choose a pay-over-time term of three to 24 months.
Checkout at the kiosk. If approved, you will be provided a single-use barcode to scan at the self-checkout kiosk.

BNPL loans in the spotlight

These loans have grown in popularity as they allow you to break up large purchases into smaller monthly payments, sometimes with zero interest, as Kiplinger previously reported. But there are also certain hazards of using BNPL, including overspending, studies show.

BNPL plans are also drawing scrutiny from consumer advocacy groups as well as state and federal governments including the Federal Reserve Bank of New York and the Consumer Financial Protection Bureau (CFPB).

The California Department of Financial Protection and Innovation advises consumers to make sure they are adequately informed before making their next big BNPL purchase, “so you don’t end up owing more than you bargained for.” One suggestion it offers is to make sure you don’t already have too many BNPL plans open before hitting “checkout” again.

Venmo Urged To Protect Users From Scams — Again

Jamie Feldman — Thu, 21 Dec 2023 14:00:22 +0000

PayPal's Venmo is still not doing enough to protect its users from potential scams, according to several Senate Banking Committee members.

Sherrod Brown (D-OH), committee chair, along with members Jack Reed (D-RI) and Elizabeth Warren (D-MA) sent a letter on December 14 to PayPal President and CEO Alex Chriss raising concerns and urging the adoption of new policies to reimburse consumers who get scammed on Venmo and make it easier for them to report when they have been scammed.

The senators also sent a letter on December 14 to Brian Grassadonia, CEO of Cash App with similar concerns over the company's "ability to keep customers' money safe" and its low reimbursement rate for unauthorized payments.

The move comes after Zelle began taking new steps to refund its users who fell victim to imposter scams, the senators said in a statement.

It also comes amid the growing popularity of digital wallets and payment apps, a sector that faces federal scrutiny regarding consumer protection.

In their letter, the senators referred to Venmo as a “closed system,” meaning both parties using the service need to be members to issue a transaction and Venmo has visibility into all accounts and in transitions.

”Venmo can both identify and block account holders who commit acts of deception and can take the crucial additional step to unwind these transactions,” they said.

But that apparently is not the case. In fact, this is not the first time the lawmakers have appealed to both Venmo and Cash App.

“According to Venmo’s response to our June 15 letter, Venmo does not appear to reimburse customers who have been victims to these — or any other — kinds of scams,” the senators said. “Customers remain on the hook and unprotected. It is past time for Venmo to follow industry trends by providing similar reimbursements to wronged consumers.”

Not clear how issues are resolved

At Venmo, there are sections on its website that detail common scams as well as information on how to report suspicious activity or messages, but it is unclear what the company does to solve the issue should it come up.

"We are extremely concerned that instant payment platforms are not taking reasonable, commonsense and proactive steps to protect their customers," the senators said. "Venmo must provide a safe platform for American consumers — who deserve a payments system that provides them with speed and convenience, but above all, that keeps their money safe."

Venmo did not immediately return a request for comment.

In a June 15 letter to Cash App's Grassadonia, the senators said the company's annual report "notes that although Cash App’s peer-to-peer payment services make customers targets for 'illegal or improper uses, including scams and fraud directed at our customers,' the company’s risk management policies and procedures 'may not be sufficient to … prevent or mitigate' the risks of scams and fraud."

They then asked Grassadonia to inform them of the specific steps that Cash App is taking to detect and prevent fraudulent transactions.

Hidden risks

Aside from the risk of scams, keeping cash in apps such as Venmo and PayPal carry hidden risks, as previously reported by Kiplinger. This is because the money in those apps may lack the federal insurance coverage of major financial institutions.

In addition, these and other payment apps and digital wallets are not held to the same standard of consumer protection as their more established banking counterparts, according to the Consumer Financial Protection Bureau, which is calling for greater supervision of such products.

To help avoid getting scammed with a no-cash lifestyle, Kiplinger recommends protecting your account with multi-factor authentication or a pin number, always confirming the identity of a person you are sending money to and setting up notifications for transactions on your account.

Amazon To Quit PayPal's Venmo in January

Joey Solitro — Mon, 11 Dec 2023 18:54:05 +0000

Amazon is removing PayPal's Venmo as a payment method for Amazon.com and its mobile app on January 10, an Amazon spokesperson told Kiplinger in an email.

“Customers can still use nearly a dozen other payment options, such as debit cards, credit cards, checking accounts or installments to pay for their orders,” the spokesperson said. She did not provide details about why the Venmo decision was made.

A PayPal spokesperson told Kiplinger in an email that the company has a strong relationship with Amazon and that it looks forward to continuing to build on that.

"Customers can continue to add their Venmo debit card or credit card to their Amazon wallet to pay on Amazon," the PayPal spokesperson said. The debit card, through Mastercard, is connected to a user's Venmo balance, according to the Venmo website. The credit card is a Visa credit card issued by Synchrony Bank.

Venmo became available as a payment option on Amazon in October 2022.

Sector faces scrutiny

The news comes amid the growing popularity of digital wallets and payment apps, which face federal scrutiny. Last month, the Consumer Financial Protection Bureau (CFPB) proposed holding these payment services to the same standard of consumer protection as their more established banking counterparts.

"Payment systems are critical infrastructure for our economy. These activities used to be conducted almost exclusively by supervised banks,” CFPB Director Rohit Chopra said in a statement. The agency's proposed rule would "crack down on one avenue for regulatory arbitrage by ensuring large technology firms and other nonbank payments companies are subjected to appropriate oversight," he said.

In June, a CFPB report found that billions of dollars stored on payment apps such as PayPal, Venmo and Cash App may lack federal insurance.

Users of payment apps can take steps to better protect themselves from hidden risks, the CFPB said. These include reading the user agreement, considering pass-through insurance that may be offered by the apps, and regularly moving your money out of the apps and into an FDIC-insured account.

Your Favorite Payment Apps May Face Federal Scrutiny

Jamie Feldman — Fri, 10 Nov 2023 17:12:56 +0000

As digital wallets and payment apps grow steadily in popularity, the Consumer Financial Protection Bureau (CFPB) proposes that they be held to the same standard of consumer protection as their more established banking counterparts.

As it stands today, apps such as PayPal, Apple Pay and Google Pay are not subject to the same regulations or, more importantly, consumer protection laws as large banks, credit unions and other financial institutions. The CFPB said its proposed rule seeks to bring more oversight of these firms and change that.

Under the proposal, companies handling more than five million transactions annually would be subject to CFPB supervision in two areas, in particular — compliance with federal consumer protection laws and competition with banks and credit unions.

The proposal comes amid growing use of payment apps in the U.S. as well as growing concerns over risks. In one study conducted by Pew Research, more than 40% of Americans say they don't use cash for any of their typical weekly purchases. Regulation of these services might also curb fears of predatory practices and overspending.

Many of the digital wallets and apps services are owned by Big Tech and other large technology providers. But payment systems are critical infrastructure that used to be provided almost exclusively by supervised banks, said Rohit Chopra, director of the consumer watchdog group. They should be subjected to the same oversight, he added.

“Big Tech and other companies operating in consumer finance markets blur the traditional lines that have separated banking and payments from commercial activities,” the CFPB said. "This blurring can put consumers at risk, especially when the same traditional banking safeguards, like deposit insurance, may not apply."

Collecting your personal data

In a speech given last month, CFPB Director Chopra pointed out some of the ways that letting these companies go unregulated can potentially hurt customers. These include the fact that they collect a significant amount of data about the consumers using their products.

“They use this data for a variety of purposes including to develop, market and sell payments products and, for a majority of them, other products and services to potential third parties," Chopra said.

A November 7 New York Times report outlined some of the proposed changes, which include giving the CFPB closer access to the companies themselves. The proposal aims to allow the consumer watchdog group to "review detailed corporate records and to send its financial examiners to companies’ offices to interview employees, scrutinize policies and safeguards, and flag problems as they spot them,” according to the report.

If you have a complaint or concern about a digital wallet or payment app, you can do so on the CFPB site.

Plaid Adds Direct Deposit Switching Services Partner

Joey Solitro — Mon, 28 Aug 2023 16:02:33 +0000

Plaid has chosen Pinwheel to provide complementary payroll data services for customers of its Income product and has chosen the payroll-focused intermediary software firm as a preferred provider for direct deposit switching services.

To enhance the Income product, Pinwheel will provide consumer-permissioned payroll data that allows lenders to verify their borrowers' income through pay stubs, bank statements, and payroll data.

Plaid – a financial data aggregator that allows users to connect their bank accounts to apps such as Venmo, SoFi, Acorns and Chime – said that it will now refer customers in need of direct deposit switching services to Pinwheel.

According to Pinwheel’s website, automated direct deposit switching allows customers to log into their payroll or income platform through their banking app and specify the amount of money they want to route to a new bank account on payday.

In 2021, Plaid paused work on its own Deposit Switch product that aimed to help customers easily switch direct deposit accounts, according to a Protocol report. The company at the time then shifted its focus to Plaid Income, the article said. The move reportedly opened the way to forming partnerships with providers like Pinwheel.

A connection to 1,700-plus payroll service providers

“Pinwheel's additional payroll connectivity will allow more consumers to access products best designed to meet their needs, and banks and fintechs can serve a wider variety of customers they otherwise wouldn't have been able to without access to data that showcases their creditworthiness," said Brian Karimi-Pashaki, partnerships lead at Pinwheel.

Pinwheel connects to more than 1,700 payroll service providers and gig platforms, covering 80% of U.S workers and more than 1.5 million employers, according to the company’s website.

According to Plaid’s website, once users connect their financial accounts to apps with Plaid, they maintain control over who to share that data with.

Earlier this year, Kiplinger reported on IRS statistics showing that using direct deposit is a good way to protect your federal tax refund from being lost or stolen. The same electronic transfer system that processes your refund is used to transfer 98% of Social Security and Veterans Affairs funds to millions of Americans, as reported.

Best National Banks 2025

lisa.gerstner@futurenet.com (Lisa Gerstner) — Tue, 27 Jun 2023 04:05:48 +0000

National banks offer a wide variety of accounts and services, including wealth and investment management. Here's Kiplinger's pick of the best.

Are you looking for a better bank? You’re in the right place.

With the help of Curinos, a financial-data provider, we’ve analyzed accounts at 40 financial institutions, evaluating them based on criteria including fees, minimum balance requirements, yields and the availability of extra perks, such as free checks or financial planning services. (For more on how we judged the contenders, see the methodology below.)

We used this information to find you the best national banks. These big brick-and-mortar institutions have branch networks in many states and offer a range of services, from basic checking and savings options to premium accounts with numerous benefits. A couple of the top banks even offer a free, no-strings checking account — an uncommon find among large institutions.

BMO Bank

Standout account: Smart Advantage Checking is free, with no monthly maintenance fee or required minimum balance.

Where it is: More than 1,000 branches across two dozen states, with many locations in the Midwest as well as the western U.S. (Rates and terms are for customers in Chicago.)

BMO’s most popular checking account, Smart Advantage Checking, charges no monthly fee, no matter your balance. For customers who can maintain a sizable balance, Relationship Checking is worth a look. You can avoid the $25 monthly fee if you keep a minimum $10,000 balance in the account or a combined $25,000 in eligible BMO deposit and investment accounts. All account holders qualify for perks including up to $25 reimbursed monthly for out-of-network ATM charges and free cashier’s checks, money orders and incoming wire transfers. Depending on your combined account balances, you may get other benefits, too. If you have $25,000 to $99,999 in quarterly combined balances, for example, you qualify for the Gold tier, which includes a rebate of $30 monthly on outgoing wire transfer fees.

BMO’s Savings Builder account is free, and during the first year you have it, BMO contributes an extra $5 for each month that you save $200 or more. The Growth Money Market account yields 2.94% if you have a Relationship Checking account and a balance of at least $250,000; BMO waives the $10 monthly fee if you have a $5,000 daily balance. Among BMO’s cert-ificates of deposit, the CD Specials recently offered the most attractive rates, including 3% on a 13-month maturity ($1,000 minimum deposit).

Fifth Third Bank

Standout accounts: Momentum Checking is free. The bank’s promotional CDs recently yielded as much as 4.35%.

Where it is: Nearly 1,100 branches in 11 states in the Midwest and South. (Rates and terms are for customers in Columbus, Ohio.)

Fifth Third’s Momentum Checking is a great option if you’re looking for a free, basic checking account. Preferred Checking lets you skip the $25 monthly fee if you have a combined deposit and investment balance of $100,000, and it has plenty of perks. They include reimbursement of surcharges for up to 10 monthly out-of-network ATM withdrawals; complimentary standard checks, notary services, cashier’s checks, money orders and incoming wire transfers; discounted rates on Fifth Third loans; personalized guidance from a team of investment professionals; free self-directed online trades in a brokerage account; and free or discounted identity theft protection services.

If you have a qualifying Fifth Third checking account, you won’t pay the $5 monthly fee on a Momentum Savings account. You can also skirt the monthly fee if you maintain a $500 monthly balance, or if you’re younger than 18 or enrolled in Fifth Third’s Military Banking, for current and former servicemembers. The Relationship Money Market has the same requirements to avoid the fee. But recently, both accounts yielded just 0.01%. The promotional CDs, however, have attractive yields, including 4.35% on a three-month maturity ($5,000 minimum deposit).

TD Bank

Standout account: With the Complete Checking account, you have several options to avoid the monthly fee; one is maintaining a daily balance of $500.

Where it is: More than 1,100 locations in 15 states on the East Coast as well as in Washington, D.C. (Rates and terms are for customers in Cherry Hill, N.J.).

TD Bank’s Complete Checking is a solid everyday account that lets you skip the $15 monthly service fee by meeting one of these monthly requirements: Make direct deposits of $500 or more, maintain a daily balance of $500 or more, or keep a $5,000 combined minimum daily balance in TD personal deposit accounts. It’s also a good starter account for young adults, charging no monthly fee to customers between the ages of 17 and 23. TD’s Beyond Checking account offers additional benefits; for more, see the section on banks and accounts for retirees.

The Simple Savings account has a $5 monthly fee, but you can bypass it if you maintain a $300 daily balance or link it to a Complete or Beyond checking account. The fee is also waived if you’re 18 or younger or 62 or older. With the Signature Savings account, you can skip the $15 monthly fee if you have a $10,000 daily balance or link it to a Beyond or Complete checking account. If you have a balance of at least $100,000 and link the account to another eligible TD checking account or loan, you get a 3% yield.

Methodology

We reviewed checking accounts, savings accounts, money market deposit accounts and certificates of deposit from each institution. We looked at interest rates; minimum deposit and balance requirements; monthly maintenance fees and the ease of waiving those fees; ATM benefits, such as waived or reimbursed fees for out-of-network withdrawals; free or discounted benefits, such as personal checks, cashier’s checks, paper statements and overdraft-protection transfers; overdraft fees and concessions, such as cushions; and online and mobile banking features, such as the availability of peer-to-peer payment services. Yields and other data listed in the article are as of early July.

Kiplinger's Best Banks

Best Internet Banks 2025

lisa.gerstner@futurenet.com (Lisa Gerstner) — Tue, 27 Jun 2023 04:05:16 +0000

Internet banks forgo branches and operate online only. They tend to offer higher yields and lower fees than brick-and-mortar banks, thanks to lower overheads. Here's Kiplinger's pick of the best.

We used this data to find the best internet banks. These online institutions don’t contend with the costs that come with operating a brick-and-mortar bank, so they can pass those savings on to customers through higher yields and lower fees.

Here's a look at our top picks:

Axos Bank

Standout account: The Axos ONE checking and savings account package charges no monthly fees, and you can earn a chart-topping 4.66% yield on the savings account if you meet certain requirements.

If you bundle your checking and savings accounts with the no-fee Axos ONE package, you can earn as much 0.51% on checking and an outstanding 4.66% on savings. To get those yields, you must meet certain requirements; one option is to receive at least $1,500 in monthly direct deposits and maintain an average daily balance of more than $1,500. Otherwise, Axos also offers savers the free, no-minimum Summit Savings account, with a 4% yield.

Axos also has several other checking accounts that are free of monthly fees, including the basic Essential Checking account. With the CashBack Checking account, you earn 1% cash back on debit card purchases that you verify with your signature rather than a PIN, as long as you keep a $1,500 daily balance (monthly earnings are limited to $2,000).

The Rewards Checking account offers a yield of as much as 3.3% if you meet these requirements: receive $1,500 monthly in direct deposits (0.40%); use your debit card for at least 10 monthly transactions or activate Axos’s online Personal Finance Manager tool (0.30%); maintain an average of a daily balance of $2,500 in an Axos Invest Managed Portfolios account (0.99%) as well as an Axos Invest Self Directed Trading Account (0.99%); and use your account to make payments on an Axos consumer loan (0.60%). All three of those checking accounts provide unlimited reimbursement of out-of-network ATM fees in the U.S.

The free Golden Checking account is for customers 55 and older, and it provides free personal checks. The First Checking account is a good starter account for teens ages 13 to 17.

Capital One

Standout accounts: The 360 Performance Savings account has a 3.5% yield, and the CDs offer decent rates, too.

Capital One’s 360 Checking has no monthly maintenance fee, and you can withdraw cash fee-free from more than 70,000 ATMs in the Capital One, MoneyPass, and Allpoint networks. The no-fee MONEY Teen Checking account, which is for teens and children who are at least 8 years old, provides a debit card, and it comes with parental controls. For example, you can track your child’s spending activity through Capital One’s mobile app and lock their debit card if necessary.

The 360 Performance Savings account offers a 3.5% yield, with no balance requirement or monthly fee. Capital One’s 360 CDs provide strong yields, including a 4% rate for a one-year term, with no minimum deposit.

EverBank

Standout account: Everbank Performance Savings offers a competitive yield of 4.30%, with no monthly fee or minimum balance requirement.

EverBank offers a noteworthy group of no-fee, high-yield accounts. With Everbank Performance Checking, you earn a 0.25% yield, and if you keep a balance of at least $5,000, you get unlimited reimbursement of out-of-network ATM surcharges (if you have a lower balance, you get $15 in monthly reimbursement). The debit card comes with benefits such as return protection, which reimburses you up to certain limits if a retailer won’t accept a return within 90 days of purchase, and an extended warranty of up to one year on purchases.

The Everbank Performance Savings account has a strong yield of 4.30%, and the Everbank Performance Money Market account offers a 4.00% rate on a balance of at least $10,000. The 13-month Everbank Performance CD has a 4.10% yield, and it requires a minimum deposit of $1,000.

Methodology

Kiplinger's Best Banks

Majority of People Prefer Traditional Banks Over Online Banks

erin.bendig@futurenet.com (Erin Bendig) — Mon, 08 May 2023 19:39:54 +0000

According to a new study released by UserTesting, 83% of respondents prefer traditional banks over online banks, largely due to a preference for speaking to a bank teller face-to-face.

For the study, UserTesting, a leader in experience research and insights, surveyed 1,800 Americans, 1,000 individuals in the United Kingdom and 1,000 Australians from March 3 to April 12, 2023. All respondents were adults with bank accounts. The study was conducted by market research company OnePoll, which has members in the Market Research Society.

The study revealed that 27% of people globally “strictly” use traditional banks - 28% of baby boomers and 26% of millennials. On the other hand, while online banks usually offer the best rates on high yield savings accounts or CDs, only 12% of respondents said they’d prefer to bank with one.

“We’re seeing a strange dichotomy in banking unfolding in front of us,” said Dana Bishop, VP of Experience Research Strategy at UserTesting. “We know physical banking branches are closing in droves, yet the data here supports that consumers — especially in younger generations — crave the in-person benefits traditional banks provide.”

In fact, 79% of Americans who bank digitally wished their banks offered some of the perks traditional banks have, such as waived fees that customers get at the ATMs of their respective, traditional banks. One of the main perks that causes people to prefer traditional brick and mortar banking, however, is face-to-face service.

Thirty-eight percent of respondents wished that digital banks also had the option to talk to humans when calling customer support, although 55% of Americans revealed they had not actually spoken with a bank teller face-to-face in the past two weeks when interviewed.

Accenture’s Top 10 Banking Trends for 2023 reported that “the absence of interest rate competition caused banking’s drawbridge to come clattering down, allowing a flood of digital-only banks to rush in. It also caused banks to shift most of their attention to those products that were still generating revenue. In the process, however, they became less customer-centric.”

However, a higher percentage of Americans trust digital banks over traditional banks than individuals in the United Kingdom and Australia. Nearly a third of Americans reported they trust digital banks more than traditional banks, compared to only 4% of Australians and 7% of U.K. respondents. Overall, most respondents viewed traditional banks as the most trusted banks.

Study Reveals the Most Trusted Banks

erin.bendig@futurenet.com (Erin Bendig) — Tue, 28 Mar 2023 19:07:13 +0000

When choosing a bank, you’ll want to find one best suited to your financial needs. Not only will you need to consider what type of account you want to open, whether it be a CD, high-yield savings account, or money market account, and whether or not your money will be safe. Choosing one of the most well-trusted banks is likely to be high on your list of criteria to help guide your decision.

For over 10 years, Lifestory has undertaken a large-scale survey of consumers in the United States with the goal to identify the brands that people trust the most per industry sector. For the 2024 America's Most Trusted® Bank Study, 44,675 people took part in the study, evaluating banks throughout the course of the year.

Trust is measured by the Lifestory Research Net Trust Quotient, which is determined by consumer answers to several questions about their impression of each bank, including how trustworthy they believed it to be. An index score of 100 is average for bank brands.

For the fifth consecutive year, Chase was the overall most trusted bank in the study. However, Chase didn't feature in Kiplinger's most recent ranking of best national banks, which takes into account a number of criteria (as well as the trustworthiness of an institution). It will be interesting to see if it features in Kiplinger's Reader's Choice Awards.

Here is the full list of rankings for the most trusted banks in 2024, per the Lifestory Research 2024 America's Most Trusted® Bank Study.

Most Trusted Banks

Bank	Trust Rating
Chase	103.0 \| *****
Capital One	98.2 \| ****
Citibank	95.6 \| ***
Bank of America	91.4 \| ***
TD Bank	89.6 \| **
PNC Bank	89.5 \| **
Citizens Bank	88.0 \| **
US Bank	87.3 \| **
Barclay's	86.7 \| **
Bank of the West	86.7 \| **
Union Bank	85.6 \| **
Ally Bank	85.1 \| **
SunTrust	82.2 \| **
Wells Fargo	81.3 \| **
HSBC	76.4 \| **

Star Legend for Lifestory Research 2024 America's Most Trusted Study
5 stars (most trusted) - 2 stars (least trusted)

Compare checking accounts using our tool.

How to keep your money safe

When placing your money in a savings account, regardless of the type, you’ll want to make sure your cash is federally protected. Before opening a bank account, whether it's a CD, high-yield savings account, or money market account, make sure it is insured by the Federal Deposit Insurance Corp (FDIC), and if opening an account with a credit union, check to see if it is NCUA insured. This will insure your money is protected, up to a certain amount, in the case your bank goes under.

FDIC insurance covers up to $250,000 in individual deposit accounts and up to $250,000 for each person’s share of joint accounts. NCUA insurance covers up to $250,000 per credit union member (whether in an individual or a joint account).

Fintech: The Bank Disrupters

Rivan V. Stinson — Wed, 28 Jul 2021 11:29:08 +0000

With the invention of the smartphone and the ascendancy of app-based services, financial technology companies—better known as fintechs—have been disrupting traditional banking, offering attractive features to new customers who aren’t tied to traditional banks. These challenger banks (or neobanks, as they’re sometimes called) tout higher rates, quicker access to paychecks, real-time spending data and, for the most part, coverage by the Federal Deposit Insurance Corp.—all while charging low (or no) fees and being mobile-centric.

Consumers are taking notice, especially since COVID-19 made banking at a physical branch more difficult. In a December survey from consulting firm McKinsey & Co., 36% of respondents who were thinking about opening a fintech account said that these accounts were easier to use than a traditional bank account. Fintechs tend to target younger consumers, who may not have a loyal banking relationship, and other demographics that the companies believe are not well served by traditional banks.

For example, challenger bank First Boulevard is directly targeting Black consumers with an account that will offer 15% cash back on purchases from Black-owned businesses that participate in its rewards network, as well as automated savings via a purchase round-up feature and early payday access. There are no overdraft or account-maintenance fees, nor is a minimum balance required. Greenwood Bank, which targets Black and Latino consumers, has similar offerings. Currently, both fintechs require you to get on a waiting list before you gain access. Targeting people in the lesbian, gay, queer and transgender communities, Daylight allows customers to choose the name they want displayed on their debit card and have access to an assigned financial coach. Daylight charges no monthly fees.

The Best Bank for You

But while the conventional wisdom is that almost all fintech users are members of Generation Z or millennials, older customers are getting in on the action, too. According to the McKinsey survey, 26% of baby boomers and 44% of Gen Xers have some type of fintech account.

Before you decide to leave your traditional bank for something more hip or sleek, see whether the features of a challenger bank you’re interested in meet your needs.

How they work

Traditional banks can’t operate without a bank charter. Under a charter, banks agree to federal oversight to keep accounts safe, insured and accessible. Fintechs currently don’t operate under such rules, mostly because keeping up with ever-changing regulations is expensive and slows their ability to bring a new product to market.

To get around the regulatory issue, fintechs “rent” the compliance or regulatory function of a bank. In return, the bank gains access to the fintech’s technology, helping the bank become more digitally focused without needing to buy a technology company or build its own app or online interface. From there, the fintech is allowed to accept deposits, and funds are held at the FDIC-insured bank.

5 First-Class Fintech Stocks to Watch

“It’s not big banks like J.P. Morgan or Citibank that are taking part in these partnerships, but smaller, regional banks that may not have the money to spend to directly compete with fintechs or even bigger banks,” says Drew Pascarella, founder of Cornell’s FinTech Intensive academic program. For example, Dallas-area MapleMark Bank recently announced a new partnership with Raisin, a German fintech specializing in certificates of deposit. As Raisin’s first U.S. bank partner, MapleMark has given Raisin access to the American market. With Raisin’s technology, the bank can offer three different CD options, including a CD ladder, to its customers while marketing its offerings to new customers as well.

Some fintechs have applied for and received their own bank charters. The first to do so was Varo Money, which launched in 2017. It received regulatory approval in July 2020 to relaunch as Varo Bank, after which it invited former Varo Money customers to open accounts at Varo Bank and move their funds.

SoFi, which pioneered student loan refinancing and now offers an interest-bearing checking account and other products, is hoping to do the same. The company received preliminary approval from regulators in October but is now working on buying a community bank to secure a charter.

Fintechs can also decide to go it alone. The drawback is that if a fintech doesn’t partner with a bank, the account isn’t covered by FDIC insurance. Currently, some fintechs specializing in cryptocurrency operate this way, says Ken Tumin, founder of DepositAccounts.com, a deposit account comparison website. BlockFi, for example, offers an interest-bearing cryptocurrency account in which you can earn up to 7.5%, depending on the type of cryptocurrency deposited.

Caveat depositor

The biggest benefit fintechs offer is their variety of free or mostly free features—typically with no overdraft fees. (Big financial institutions charge, on average, a little over $33 when you overdraw your account. In 2020, banks made an estimated $31.3 billion in overdraft revenue.) To attract customers, fintechs including Chime, Varo Bank, Current, Dave and a slew of others market their no-overdraft-fee policy, and some allow you to access your paycheck in advance.

On the other hand, customer service is a low priority. If you have a question or complaint, you typically have to communicate via e-mail or live chat on a website. You may never be able to talk with a human on the phone. (For a look at how Chime’s policies turned into a customer service black eye, see below.)

Another concern: Free can’t last forever. The potential for fintechs to add overdraft fees down the road is giving consumer advocates pause. Plus, as these companies begin to offer more-sophisticated product lineups, the costs will eventually rise.

“Right now, these fintechs are choosing to eat the cost on these features to gain customers,” says Eric Solis, CEO of MovoCash, a financial technology company that offers on-demand mobile banking and other services in one app. “But fee creep is coming. The costs are the bottom of the iceberg that consumers don’t see, and you can only eat that cost for so long,” he says.

Best Banks for Parents With Kids

Users of the savings deposit app Digit are already experiencing this fee creep. Digit initiated a monthly fee of $2.99 in 2017. That was pushed up to $5, and starting this fall the fee will be $9.99 a month. That’s when Digit will debut new features, including a checking account called Digit Direct, which employs artificial intelligence to help customers budget, save and invest. Customers will also have access to 55,000 fee-free ATMs. Current Digit users who upgrade to Direct will continue to pay the $5 monthly fee for six months before the $9.99 fee kicks in. Those who don’t want to use the new banking feature can choose not to upgrade and continue using the $5-a-month version of the app. (New customers interested in Direct have to join its waiting list.)

Along with fee creep, some fintechs could chip away at their high yields, or you may have to jump through hoops to get them. T-Mobile customers who sign up for T-Mobile Money, a checking account provided by BankMobile, can earn up to 4% on balances up to $3,000 (1% on higher balances). But to get the initial 4%, you have to be enrolled in a qualifying wireless plan, register for perks with your T-Mobile ID and make 10 qualifying purchases with your T-Mobile Money debit card each month.

A few fintechs have entered into partnerships with sweep account services as an entrée into the U.S. banking system. With this setup, the fintech works with a network of banks instead of one, “sweeping” deposits into multiple FDIC-insured banks. This arrangement, however, is more convoluted, and it poses more risks for consumers because they’re not made aware of which bank has their deposits and could have trouble accessing their money, says Tumin.

That’s what happened to Beam Financial customers last year. Instead of receiving transfers out of their Beam accounts within the promised three- to five-day window, some customers waited weeks or months. Customer service requests made through the mobile app went unanswered. And because Beam partnered with a sweep network, customers did not know which bank had their money. In response to these complaints and others, the Federal Trade Commission sued Beam. In March 2021, the company settled with the Federal Trade Commission to refund customers all funds, including interest, and Beam can no longer accept deposits.

If you’re simply looking for a better yield on your savings, take a look at internet banks. Go to www.depositaccounts.com and select “Personal Savings Accounts” under the Savings Accounts navigation tab.

Chime strikes a sour note

As Americans received stimulus money, unemployment checks and tax refunds, Chime ran an aggressive marketing campaign inviting new customers to sign up for accounts. But as the money rolled in, Chime began closing some accounts. When the customers with frozen funds e-mailed Chime to ask why, they received responses noting that the deposits had been flagged as “unusual activity,” according to a report from ProPublica, a nonprofit investigative publication.

Chime requested that these customers send in identification and proof that the stimulus checks and unemployment checks were legitimate. Yet some customers had to wait months to gain access to their money, ProPublica reports. (At press time, Chime had not yet responded to our request for comment.) Chime noted (as reported by ProPublica) that the company, along with its partner banks Bancorp and Stride, was aware of increased scam activity spurred by the various stimulus packages and that the accounts were suspended as part of its fraud-prevention methods.

Kiplinger’s Best Firms for Customer Service: Banks, Credit Cards and More

“A lot of people out there are trying to get a U.S. bank account for the wrong reasons, so there are valid reasons for vetting accounts and vetting payments,” says Adam Rust, senior policy adviser at the National Community Reinvestment Coalition, a national membership group that champions fairness in lending, housing and wealth-building. “But it sounds as if Chime was advertising for this stimulus use, so it certainly raises questions about its preparation.”

The situation highlights the need to ask a neobank how it will resolve any issues that arise. Will problems be handled only via chatbot or e-mail? And do you know exactly where your money resides? For example, is your name on an account at a partner bank? With a traditional bank, you can typically reach a customer service rep via phone or visit a branch, cutting out any middlemen. Whether you set up an account with a neobank or stick with a traditional institution, report any problems you have to the institution as well as the Consumer Financial Protection Bureau (go to www.consumerfinance.gov/complaint).

Find the best fintech account for you

If you’re comfortable with all-digital banking, fintechs can be an attractive alternative to a traditional bank. “Savers might be attracted to some of the high-yield accounts offered by fintechs,” says Adam Rust, senior policy adviser at the National Community Reinvestment Coalition, a national membership group that champions fairness in lending, housing and wealth-building. “Yields were sometimes above 2% as recently as a year ago and are still above what is available at the typical bank,” he adds.

Varo Bank offers a savings account that earns up 3%. To get the full rate, you must receive a monthly total of $1,000 in direct deposits into either the savings account or the Varo Bank checking account. Neither your checking nor your savings account balance can dip below $0 for the month, and your savings account can’t exceed a daily balance of $5,000 for any day of the month. To apply, download the Varo Bank app from the Apple App Store or the Google Play Store.

Best Internet Banks

On top of providing VantageScores, credit monitoring and tax-prep services, Credit Karma is also getting into the fintech game. The company now offers a spending and savings account under Credit Karma Money. The spending account is free to open, and there’s no minimum balance to maintain. If you set up a direct deposit into the spending account, you can access your paycheck up to two days early. Plus, there are no overdraft fees, and users can access more than 55,000 ATMs. Bonus: Credit Karma may reimburse you for a purchase thanks to its Instant Karma program. The savings account earns 0.17%.

If you’re more concerned about collecting rewards, the free basic checking account from Current is worth a look. The account has no overdraft fees, no monthly maintenance fee and no minimum-balance requirement. It also offers mobile check deposit and access to 55,000 free ATMs. To earn rewards points, you activate offers from participating retailers within the app. Current users who want early paycheck access can upgrade to a premium account for $4.99 a month.

Fintech is also addressing the specific needs of gig workers. Lili, for example, offers a checking account with tax-planning tools (in addition to charging no overdraft fees and requiring no minimum balance). Gig workers can track and sort expenses into “life” and “work” categories to generate an expense report when it’s time to pony up taxes to Uncle Sam. The app also lets you automatically save a portion of each gig payment in a tax bucket.

COVID-19 Speeds the Cashless Transition

kiplinger@futurenet.com (Sandra Block) — Thu, 02 Jul 2020 15:54:12 +0000

Dayna Ford is senior director-analyst for Gartner, a market research firm. She focuses on digital wallets and other forms of electronic payment.

Electronic payments have soared since the pandemic began. Do you expect that trend to continue after the crisis is over? I do, though the trend toward digital payments due to the pandemic has taken different forms: shopping online, paying digitally while doing a physical pickup or using contactless methods of payment, such as digital wallets. All were existing trends that had been steadily climbing over the past couple of years but have accelerated since the pandemic began. After the crisis is over, the rate of digital payments will drop, but not to what it was before.

15 Safe Ways to Earn Extra Cash in the Age of the Coronavirus

Apple, Google and other providers offer apps designed to eliminate the physical wallet in favor of a digital one, but they’re not widely used. Do you think they’ll become more popular now? In places such as Asia, the use of digital wallets is very pervasive. A key reason we don’t have more adoption here is consumer inertia. Consumers in the U.S. and Europe are accustomed to using plastic credit and debit cards. But concerns about health and hygiene could get consumers to try digital wallets. Once they try them, some will continue to use them.

What about contactless, peer-to-peer payment systems? We will continue to see the growth of peer-to-peer systems such as Venmo. You also have programs such as Zelle, which caters more to consumers who use traditional banks. The pandemic adds momentum because some consumers don’t want to touch cash. Concerns about hygiene will get some people over the inertia that prevented them from trying these systems.

How can consumers protect themselves from identity theft when using these products? In some ways, digital wallets are more secure than credit and debit cards. For example, when you make online purchases using a digital wallet, only the wallet provider sees your credit or debit card information. Consumers should follow best practices for protecting data on their phones—use passwords and biometric authentication, auto-lock the screen—to keep their phones protected. And make sure you choose a reputable digital wallet provider, because you are storing your payment credentials with them.

Other countries, such as Sweden, are essentially cashless. How far is the U.S. from becoming a cashless society? I don’t think cash is going away anytime soon. We’ve seen a number of legislative initiatives to protect cash, such as banning cashless stores in San Francisco, New Jersey and Philadelphia because they’re seen as discriminating against consumers who don’t have a bank account. Plastic cards may go away before cash. I do think we will see some reduction in the amount of cash in circulation due to the pandemic.

America Lurches Toward a Cashless Future

What are the prospects for the Federal Reserve introducing a digital form of the U.S. dollar? The U.S. Federal Reserve, along with central banks in Europe and other regions, has considered developing its own digital currency. Other countries, such as China, are farther along this path. It seems likely that the U.S. will watch to see how these initiatives fare in other regions before it makes a decision.

Latest from Kiplinger in Online-banking

Kiplinger Readers' Choice Awards 2026: Peer-to-Peer Payment Services

Kiplinger Readers' Choice Awards: Peer-to-Peer Payment Services

OVERALL WINNER: Cash App

Highly-Rated Providers

Zelle

Apple Cash

Kiplinger Readers' Choice Awards Categories

How Readers Chose the Winners

Kiplinger Readers' Choice Awards 2026: Internet Banks*

Kiplinger Readers' Choice Awards: Internet Banks

Overall Winner: Charles Schwab Bank

Highly-rated providers

Ally Bank

Capital One

USAA

Kiplinger Readers' Choice Awards Categories

How Readers Chose the Winners

3 Steps to Keep Your Digital Data Safe, Courtesy of a Financial Planner

Maintain good data hygiene

Remove your data from the web and close old accounts

Choose institutions carefully

The digital landscape is evolving

Related Content

Online Banks Still Lead on Rates, But Is Switching Worth it Now?

How interest rates are changing and why it matters

Pros of banking online

Cons and things to consider

Where to find the best savings rates

When switching makes sense and when it doesn’t

How to decide if an online bank is right for you

Related Content

4 Great Tools to DIY Your Own Financial Plan

Boldin

MaxiFi

Empower

Origin Financial

How to use these tools

Run multiple scenarios.

Know the limitations.

Revisit your conclusions.

Related Content

How to Skip Fees at the Bank

Beat ATM surcharges

Dodge other fees

Related Content

Lawsuit Claims Zelle Security Lapses Cost Over $1 Billion in Fraud: What You Need to Know

Why the lawsuit blames Zelle for $1 billion in fraud losses

Zelle's easy-to-use payment platform is just as easy to use for fraudsters

Protect yourself from fraud when using payment apps

Fraud prevention starts with awareness and caution

Related content

2025 Kiplinger Readers' Choice Awards Results

Kiplinger Readers’ Choice Awards Categories

Best Full-Service Brokers

Best Wealth Management

Best Cash Back Credit Cards

Best Travel Rewards Credit Cards

Best Airline Card Rewards Programs

Best Hotel Credit Cards Rewards Programs

Best National Banks

Best Internet Banks

Best Auto Insurance Companies

Best Homeowners Insurance Companies

Best Annuity Providers

Best Tax Software

Best Peer-To-Peer Payment Apps

How Readers Chose Their Winners

Kiplinger Readers' Choice Awards Categories

Kiplinger Readers' Choice Awards 2025: Internet Banks

Kiplinger Readers' Choice Awards: Internet Banks

OVERALL WINNER: Charles Schwab Bank

Ally

USAA

Kiplinger Readers' Choice Awards Categories

How Apps Are Impacting Traditional Banking

Advantages of app-based banking

Banking evolves

The future of finance

Related Content