Banking

Should You Switch to Neobank Startups?

Ain't Your Daddy's Banks: A Deep Dive into Chime, Current, and Varo Remember the good old days of free pens on chains at the bank, or lollipops at the drive-thru? Cute, but… what about getting your paycheck a couple of days early, or bouncing off costly overdraft fees like a Superball? Yeah, I thought that might get your attention. These are actually standard perks from financial technology companies like Chime, Current, and Varo, who’ve been stomping up the stairs to the big leagues in recent years. "Neobanks", they call 'em – spurring an evolution in banking with their eyes set on outstripping the banking big guns like Wells Fargo. Their appeal? Flexibility, control and a big neon sign saying "Welcome Y'all", aimed at middle-class Americans. Different to your parents' banks? Most definitely, and that's not by accident. Harvard Business School's very own Marco Di Maggio tells us the rapid growth of neobanks is all about people wanting something new from banking. With a growing distaste for traditional banking behemoths like Bank of America and JPMorgan Chase, especially among Millennials and Gen Z, it's no surprise these fresh-faced alternatives are all the rage. Lucky for us, every day's an all-you-can-eat buffet of modern banking choices, each tantalizing with unique features. To help you gorge on this financial feast, buckle up for a detailed comparison of Chime, Current, and Varo. Neobanks Pros and Cons So, let's cut to the chase – what can Chime, Current, and Var… Read more

Liam Johnson

Risk-Free Ways Savers Can Beat Inflation

Think beating inflation is like trying to win "The Hunger Games"? Well, guess again! It may not be as daunting as it seems. We are living in a golden age of savings accounts and fixed-income investments offering real yields. This means their annual percentage yield (APY) bulldozes over the current rate of inflation like a runaway snowplow. Now that, my friend, is rarer than seeing a dog walk on its hind legs! Whoever Said Safe Investments are Boring? Yes, I'm aware that interest rates for some savings modes have crept down since last year but, "don’t throw the baby out with the bathwater!" Experts are singing in harmony about the allure of safe investments. Why, you ask? Because real yields are still floating in the clouds. Need an example? Buckle up! The U.S. aggregate bond index, the big kahuna of high-quality, investment-grade bonds, is currently yielding 5.28%. And our buddies, the top 12-month certificates of deposit (CDs), are putting up a bit of a fight with APYs up to 5.25%. These rates run circles around the annual inflation rate of 3.5%, like they're in some kind of track and field event! Matthew Miskin, the brains at John Hancock Investment Management in Boston, points out that it’s been a long time since investors could pocket risk-free returns above projected inflation. For those nearing retirement or already basking in the retirement sun, it’s like a “money grows on trees” situation! The Divine Dance of Real Yields in 2024 Real yields can be your crystal b… Read more

Liam Johnson

Why Adults Still Use Personal Checks Today

Hey there, my fellow Dollar Scholars! Let me tell you a secret. Aside from my main gig as a 27-year-old writer for your favorite personal finance newsletter, I can also do pretty handy impersonations. Channels like Dave Ramsey, take cover! Every week, I set forth on a noble quest to unravel the mysteries of the green. Answers to questions like "What happens if 401(k) isn't my thing?" or "Am I part of the Fantastic 4 if I have 4 credit cards?" flutter in my brain, all day, every day. But I don't keep the divine wisdom all to myself. Nay! I share them with you all, summarizing the bits that'll keep your wallets heavy and minds lightweight. And oh boy, who wouldn't love some charming dog photos on the side! Before you jump in, don't forget to hit that subscribe button so we can keep these Wednesday word parties going strong! — This 27-year-old is stranger than fiction! If there's one constant in life, it's that we all age. Some like vintage wine, others like Ryan Reynolds. His "Deadpool" character makes as much sense to me as a vegan enjoying barbecue, but hey, who am I to judge? As I'm ripening into my late twenties, I like a plethora of unconventional things. You think tie-dye is a crime against humanity? I see it as a fashion statement. Crazy about luxury shoes? I’m wearing limited-edition sneakers covered in puppy prints. Reality TV your guilty pleasure? Try glass-blowing on Netflix! And don't even get me started on the ridiculous Star Wars sequel memes… In true … Read more

Liam Johnson

Should I Switch Banks for Higher APYs?

Alrighty, it's time to give this mega informative newsletter a make-over – fashioning it with pizzazz while making it more relatable to 'yours truly'! — Daily Digs from Dollar Scholar Welcome, money geeks! Your personal finance guru, Julia Glum, is here with her latest moolah memo for the modern Joe/Jane. Living with Truman, the Lazy Sunbather You know, my work-from-home setup is never lonely. Every time I go for a coffee refill, my roommate's cat is sprawled across the kitchen floor, blissfully soaking up the sun. All hail Truman, our sun deity of sorts! Winter? No problem. We humans shift his cushy bed around every half hour, just to keep it in the sunny patch. And the grateful feline? Eyes shut, warm and cosy, and completely unbothered (much to my envy!). And it hit me! Truman’s royal lifestyle is a lot like this newfangled trend of bank hopping. You know, people switching from bank to bank to get the highest annual percentage yield (APY) on their savings? Well, despite the Federal Reserve not making any big moves of late, it seems the super high APYs of top-ranking high-yield savings accounts are starting to dwindle. No wonder, 'rate-chasing', the relentless pursuit of the highest rates, is rearing its head. Should I Jump on the Rate-Chasing Bandwagon? Cicely Jones, a certified finance guru from Equitable Advisors, explains that moving your cash once from a regular savings account to a high-yielding one is a smooth move. For instance, the average savings APY is a… Read more

Liam Johnson

Best Business Line of Credit Options Compared

Got a Mega Plan for Business Expansion? You May Need a New Line of Credit! Have you been dreaming about your business soaring into new realms of success? Well, buddy, you may need a line of credit to turn those dreams into reality! By the end of this guide, you'll be a whiz on business lines of credit. So buckle up and let's dive into the beautiful, complex world of business lending, shall we? What the Heck is a Business Line of Credit? Let's play this straight: a business line of credit is like a safety net for your business. Instead of getting a lump sum of money all at once, like the lottery or a traditional loan, a line of credit says, "Here's some cash, use it when you need it." The beauty of it? You only cough up the interest for the money you use. Sweet deal, right? As long as you're spending on legitimate business shenanigans like payroll, inventory, and even those unexpected costs that pop up out of nowhere, you can utilize your credit line till the cows come home. If you're tickled pink and want to know more, check this out: what is a business line of credit. How a Business Line of Credit Breakdances A business line of credit waltzes around much like a business credit card, giving you access to funds—provided, of course, you keep up with regular payments. This is not a free-for-all, after all. There are a few things you need to keep in mind: Fees Alrighty, so you need to be aware of some potential party crashers called "fees." It's like your friend who shows … Read more

Liam Johnson

Should You Share a Bank Account With Friends?

Alrighty then, let's dive into this properly intriguing topic, shall we? Welcome to the Dollar Scholar Hello peeps! So, this here is a charming little piece from Dollar Scholar, where yours truly, Julia Glum, likes to break down the mysteries and conundrums of the financial world for you all. Don't want to miss a beat? Subscribe pronto and blend in with our vibrant community of over 160,000 Scholars and counting. Not shabby, eh? Sisters Before Misters, So How About Banking Sisters? Okay, me and my squad—we share everything. All things significant and insignificant, from clothes and chatter to yes, even our views on Taylor Swift’s latest rerelease (if it ain’t Reputation, I'm chowing down on my hat!). But say, how about we take this sharing business to the bank? Can we, should we, set up a joint bank account? Now, the thought isn't entirely original. Thanks to a TikTok video that's been going around where the user boldly declares that she splits her fortunes with her best mate. Shocking, innit? Now, I'm no stranger to financial fusion—I mean, lovebirds do it—but bank buddies? Sounds mind-blowing, even by our standards. But heck, considering the Venmo hassles we endure for rent, food deliveries, and those salvation-bringing Starbucks runs, this seemingly odd idea could possibly redefine convenience, right? Or not? When Friendship Crosses Over Inot Joint Banking Disclaimer: Content that followed has been sponsored by the fine folks at Discover® who’s pretty smug about thei… Read more

Liam Johnson

Banks Paying Hundreds to Open Checking Accounts

Well, well, well! Aren't we all in for a gold rush? With the scramble for new customers getting intense, the cutthroat competition is turning banking quarters into a battleground. Can you believe it? Financial institutions are duking it out over client deposits in a high-interest rate environment. Can't blame them—it's the survival of the fittest, folks! Hustle, Bustle & Upping their Game Got an itch for banking perks? Banks have now raised their poker chips, offering fatter cash incentives for opening new checking accounts. Now, how's that for a tasty financial appetizer? Here's an insider scoop from Curinos, the financial analytics whizz kids: the average checking account bonus just saw a giant leap in April hitting $400, compared to a mere $300 in 2021.† But listen, these sweet promos are not just a free grab. Sure, they can be a quick way to pocket some extra dough, but be wise, my friend. You may find a teeny weeny surprise lurking in the shadows: some hidden fees, taxable income, or a few hitches with future account openings. So, should you be swayed by a flashy one-time bonus? Nah! Look for the practicality: ATM accessibility, an overview of fees, overdraft protection, available transfer options—these should flag the way to your choice of the best bank. Cracking Open the Fortune Cookie: Bank Account Bonuses Keen to scoop up a checking account bonus? All you gotta do is meet a few simple terms and conditions, which vary based on the bank. A piece of cake, right? In … Read more

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Hey there! Is your bank account balance looking a bit slim these days? If you nodded your head just now,

Liam Johnson

Well, my friends, let’s talk banking, and I mean serious banking. More precisely, let’s talk high-yield, digital, hard-core banking. Ready

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Well, well, if it isn’t money mavens and savvys savers! It seems that our era of sky-high interest rates –

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Shaking Up the Piggy Bank: The Unsung Heroes of Finance – Credit Unions Alright, let’s get down to it. You’ve

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Ain’t Your Daddy’s Banks: A Deep Dive into Chime, Current, and Varo Remember the good old days of free pens

Liam Johnson

So, you’re considering opening a bank account, eh? Boy, I wish I could go back and give my younger self

Liam Johnson

Think beating inflation is like trying to win “The Hunger Games”? Well, guess again! It may not be as daunting

Liam Johnson

Massive changes on the horizon for savers Remember when we were rolling in dough with those sweet 5% Annual Percentage

Liam Johnson

Heya, folks! Ready for a surprising fact? Beating inflation might not be as tough as you’d think. The financial landscape

Liam Johnson

Alright folks, fasten your seatbelts as we navigate through the turbulent world of post-pandemic interest rates. Can you believe it’s

Liam Johnson

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