Inheriting property or other assets typically involves filing the appropriate tax forms with the IRS. Schedule K-1 (Form 1041) is used to report a beneficiaryâs share of an estate or trust, including income as well as credits, deductions and profits. A K-1 tax form inheritance statement must be sent out to beneficiaries at the end of the year. If youâre the beneficiary of an estate or trust, itâs important to understand what to do with this form if you receive one and what it can mean for your tax filing.
Schedule K-1 (Form 1041), Explained
Schedule K-1 (Form 1041) is an official IRS form thatâs used to report a beneficiaryâs share of income, deductions and credits from an estate or trust. Itâs full name is âBeneficiaryâs Share of Income, Deductions, Credits, etc.â The estate or trust is responsible for filing Schedule K-1 for each listed beneficiary with the IRS. And if youâre a beneficiary, you also have to receive a copy of this form.
This form is required when an estate or trust is passing tax obligations on to one or more beneficiaries. For example, if a trust holds income-producing assets such as real estate, then it may be necessary for the trustee to file Schedule K-1 for each listed beneficiary.
Whether itâs necessary to do so or not depends on the amount of income the estate generates and the residency status of the estateâs beneficiaries. If the annual gross income from the estate is less than $600, then the estate isnât required to file Schedule K-1 tax forms for beneficiaries. On the other hand, this form has to be filed if the beneficiary is a nonresident alien, regardless of how much or how little income is reported.
Contents of Schedule K-1 Tax Form Inheritance Statements
The form itself is fairly simple, consisting of a single page with three parts. Part one records information about the estate or trust, including its name, employer identification number and the name and address of the fiduciary in charge of handling the disposition of the estate. Part Two includes the beneficiaryâs name and address, along with a box to designate them as a domestic or foreign resident.
Part Three covers the beneficiaryâs share of current year income, deductions and credits. That includes all of the following:
Interest income
Ordinary dividends
Qualified dividends
Net short-term capital gains
Net long-term capital gains
Unrecaptured Section 1250 gains
Other portfolio and nonbusiness income
Ordinary business income
Net rental real estate income
Other rental income
Directly apportioned deductions
Estate tax deductions
Final year deductions
Alternative minimum tax deductions
Credits and credit recapture
If you receive a completed Schedule K-1 (Form 1041) you can then use it to complete your Form 1040 Individual Tax Return to report any income, deductions or credits associated with inheriting assets from the estate or trust.
You wouldnât, however, have to include a copy of this form when you file your tax return unless backup withholding was reported in Box 13, Code B. The fiduciary will send a copy to the IRS on your behalf. But you would want to keep a copy of your Schedule K-1 on hand in case there are any questions raised later about the accuracy of income, deductions or credits being reported.
Estate Income and Beneficiary Taxation
If you received a Schedule K-1 tax form, inheritance tax rules determine how much tax youâll owe on the income from the estate. Since the estate is a pass-through entity, youâre responsible for paying income tax on the income thatâs generated. The upside is that when you report amounts from Schedule K-1 on your individual tax return, you can benefit from lower tax rates for qualified dividends. And if thereâs income from the estate that hasnât been distributed or reported on Schedule K-1, then the trust or estate would be responsible for paying income tax on it instead of you.
In terms of deductions or credits that can help reduce your tax liability for income inherited from an estate, those can include things like:
Depreciation
Depletion allocations
Amortization
Estate tax deduction
Short-term capital losses
Long-term capital losses
Net operating losses
Credit for estimated taxes
Again, the fiduciary whoâs completing the Schedule K-1 for each trust beneficiary should complete all of this information. But itâs important to check the information thatâs included against what you have in your own records to make sure that itâs correct. If thereâs an error in reporting income, deductions or credits and you use that inaccurate information to complete your tax return, you could end up paying too much or too little in taxes as a result.
If you think the information in your Schedule K-1 (Form 1041) is incorrect, you can contact the fiduciary to request an amended form. If youâve already filed your taxes using the original form, youâd then have to file an amended return with the updated information.
Schedule K-1 Tax Form for Inheritance vs. Schedule K-1 (Form 1065)
Schedule K-1 can refer to more than one type of tax form and itâs important to understand how they differ. While Schedule K-1 (Form 1041) is used to report information related to an estate or trustâs beneficiaries, you may also receive a Schedule K-1 (Form 1065) if you run a business thatâs set up as a pass-through entity.
Specifically, this type of Schedule K-1 form is used to record income, losses, credits and deductions related to the activities of an S-corporation, partnership or limited liability company (LLC). A Schedule K-1 (Form 1065) shows your share of business income and losses.
Itâs possible that you could receive both types of Schedule K-1 forms in the same tax year if you run a pass-through business and youâre the beneficiary of an estate. If youâre confused about how to report the income, deductions, credits and other information from either one on your tax return, it may be helpful to get guidance from a tax professional.
The Bottom Line
Receiving a Schedule K-1 tax form is something you should be prepared for if youâre the beneficiary of an estate or trust. Again, whether you will receive one of these forms depends on whether youâre a resident or nonresident alien and the amount of income the trust or estate generates. Talking to an estate planning attorney can offer more insight into how estate income is taxed as you plan a strategy for managing an inheritance.
Tips for Estate Planning
Consider talking to a financial advisor about the financial implications of inheriting assets. If you donât have a financial advisor yet, finding one doesnât have to be complicated. SmartAssetâs financial advisor matching tool can help you connect with professional advisors in your local area in minutes. If youâre ready, get started now.
One way to make the job of filing taxes easier is with a free, easy-to-use tax return calculator. Also, creating a trust is something you might consider as part of your own estate plan if you have significant assets you want to pass on.
The second stimulus package is tightening the rules for millions of gig workers, independent contractors and self-employed workers receiving unemployment aid.
On Dec. 27, the $900 billion stimulus package extended Pandemic Unemployment Assistance, a critical benefits program for folks who donât typically qualify for regular unemployment aid. The deal lengthened PUA benefits for at least 11 weeks, but it also created new filing rules that affect current recipients and new applicants alike.
Chief among the new rules: You will need to submit income documentation to your stateâs unemployment agency if you are a gig worker or self-employed worker â or risk losing future benefits and having to return any benefits collected after Dec. 27.
âI think they are a real pain,â said Michele Evermore, an unemployment policy analyst for the National Employment Law Project, regarding the new PUA filing rules. âNot just for recipients, but for state agencies to collect. Every burden we add to state agencies slows benefit processing for everyone.â
The new requirements are intended to combat fraud. According to the Department of Labor, more than 7.4 million people are relying on PUA and are subject to the changes.
New Pandemic Unemployment Assistance Rules and Deadlines
The new deadlines established by the second stimulus package are different for current PUA recipients and new applicants.
As a current PUA recipient, you have until March 27 to submit income-related documents to prove your PUA eligibility. If you apply for PUA before Jan. 31, you also have until March 27.
If you apply for PUA Jan. 31 or later, you will have 21 days from the date of your application to submit income-related documents.
Need to apply? Our 50-state Pandemic Unemployment Assistance filing guide includes an interactive map and the latest information from the second stimulus deal.
The Department of Labor requires each state to notify you of your state-specific rules. Your state may have different deadlines. In that case, refer to your stateâs instructions. The DOL is also leaving it to each state to determine exactly what documents are required to prove your eligibility.
Here are some examples of documents your state may ask you to file:
Tax forms such as 1099s and W-2s.
Ledgers, recent pay stubs and earnings statements from gig apps.
Recent bank statements showing direct deposits.
If youâre self-employed, you may be required to submit:
Federal or state income tax documents.
A business license.
A 1040 tax form along with a Schedule C, F, SE or K.
Additional records that prove youâre self employed, such as utility bills, rental agreements or checks.
If youâre qualifying for PUA because you were about to start a job but the offer was rescinded due to COVID-19 related reasons, you may be asked to submit an offer letter, details about the employer and other information related to the job to verify your claim.
Another new rule is that you will have to self-certify that you meet one or more of the following PUA eligibility requirements on a weekly basis:
You have been diagnosed with COVID-19 or have symptoms and are seeking diagnosis.
A member of your household has COVID-19.
You are taking care of someone with COVID-19.
You are caring for a child or other household member who canât attend school or work because it is closed due to the pandemic.
You are quarantined by order of a doctor or health official.
You were scheduled to start employment and donât have a job or canât reach your workplace as a result of the pandemic.
You have become the breadwinner for a household because the head of household died due to COVID-19.
You had to quit your job as a direct result of COVID-19.
Your workplace is closed as a direct result of COVID-19.
Self-certification means that you swear the reason(s) you are on PUA is or are true at the risk of perjury. Previously, PUA applicants had to self-certify only once at the time of their initial application.
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Evermore says that since current PUA recipients werenât asked to submit all this information when they were first approved, they might no longer have access to the requested documents.
âPeople who were told they donât need documentation may have lost it, and this will create panic resulting in more stress on people who have already had an unimaginably bad year,â she said.
The good news, Evermore says, is that states have leniency to waive some of these requirements if you can demonstrate âgood causeâ for not being able to submit the requested documents. Whatâs considered âgood causeâ is also determined on a state-by-state basis.
âPeople who got approved for benefits in the past wonât necessarily get cut off from benefits simply because they are unable to produce the requested documentation,â Evermore said. âJust follow all of the agencyâs instructions carefully.â
Adam Hardy is a staff writer at The Penny Hoarder. He covers the gig economy, remote work and other unique ways to make money. Read his âlatest articles here, or say hi on Twitter @hardyjournalism.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
If the stock market crashed again, would you respond by investing more? Is day trading your sport of choice? Do you smirk at the idea of keeping money in a savings account instead of investing it?
If you answered yes to these questions, youâre probably an investor with a high risk tolerance.
Hold up, Evel Knievel.
Itâs fine to embrace a âno-risk, no-rewardâ philosophy. But some investments are so high-risk that they arenât worth the rewards.
10 Risky Investments That Could Lead to Huge Losses
Weâre not saying no one should ever consider investing in any of the following. But even if youâre a personal finance daredevil, these investments should give you serious pause.
Sure, if things go well, youâd make money â lots of it. But if things go south, the potential losses are huge. In some cases, you could lose your entire investment.
1. Penny Stocks
Thereâs usually a good reason penny stocks are so cheap. Often they have zero history of earning a profit. Or theyâve run into trouble and have been delisted by a major stock exchange.
Penny stocks usually trade infrequently, meaning you could have trouble selling your shares if you want to get out. And because the issuing company is small, a single piece of good or bad news can make or break it.
Fraud is also rampant in the penny stock world. One common tactic is the âpump and dump.â Scammers create false hype, often using investing websites and newsletters, to pump up the price. Then they dump their shares on unknowing investors.
2. IPOs
You and I probably arenât rich or connected enough to invest in an IPO, or initial public offering, at its actual offering price. Thatâs usually reserved for company insiders and investors with deep pockets.
Instead, weâre more likely to be swayed by the hype that a popular company gets when it goes public and the shares start trading on the stock market. Then, weâre at risk of paying overinflated prices because we think weâre buying the next Amazon.
But donât assume that a company is profitable just because its CEO is ringing the opening bell on Wall Street. Many companies that go public have yet to make money.
The average first-day returns of a newly public company have consistently been between 10% to 20% since the 1990s, according to a 2019 report by investment firm UBS. But after five years, about 60% of IPOs had negative total returns.
3. Bitcoin
Proponents of bitcoin believe the cryptocurrency will eventually become a widespread way to pay for things. But its usage now as an actual way to pay for things remains extremely limited.
For now, bitcoin remains a speculative investment. People invest in it primarily because they think other investors will continue to drive up the price, not because they see value in it.
All that speculation creates wild price fluctuations. In December 2017, bitcoin peaked at nearly $20,000 per coin, then plummeted in 2018 to well below $4,000. That volatility makes bitcoin useless as a currency, as Bankrateâs James Royal writes.
Unless you can afford to part ways with a huge percentage of your investment, bitcoin is best avoided.
4. Anything You Buy on Margin
Margining gives you more money to invest, which sounds like a win. You borrow money from your broker using the stocks you own as collateral. Of course, you have to pay your broker back, plus interest.
If it goes well, you amplify your returns. But when margining goes badly, it can end really, really badly.
Suppose you buy $5,000 of stock and it drops 50%. Normally, youâd lose $2,500.
But if youâd put down $2,500 of your own money to buy the stock and used margin for the other 50%? Youâd be left with $0 because youâd have to use the remaining $2,500 to pay back your broker.
That 50% drop has wiped out 100% of your investment â and thatâs before we account for interest.
5. Leveraged ETFs
Buying a leveraged ETF is like margaining on steroids.
Like regular exchange-traded funds, or ETFs, leveraged ETFs give you a bundle of investments designed to mirror a stock index. But leveraged ETFs seek to earn two or three times the benchmark index by using a bunch of complicated financing maneuvers that give you greater exposure.
Essentially, a leveraged ETF that aims for twice the benchmark indexâs returns (known as a 2x leveraged ETF) is letting you invest $2 for every $1 youâve actually invested.
We wonât bore you with the nitty-gritty, but the risk here is similar to buying stocks on margin: It can lead to big profits but it can also magnify your losses.
But hereâs whatâs especially tricky about leveraged ETFs: Theyâre required to rebalance every day to reflect the makeup of the underlying index. That means you canât sit back and enjoy the long-haul growth. Every day, youâre essentially investing in a different product.
For this reason, leveraged ETFs are only appropriate for day traders â specifically, day traders with very deep pockets who can stomach huge losses.
6. Collectibles
A lot of people collect cars, stamps, art, even Pokemon cards as a hobby. But some collectors hope their hobby will turn into a profitable investment.
Itâs OK to spend a reasonable amount of money curating that collection if you enjoy it. But if your plans are contingent on selling the collection for a profit someday, youâre taking a big risk.
Collectibles are illiquid assets. Thatâs a jargony way of saying theyâre often hard to sell.
If you need to cash out, you may not be able to find a buyer. Or you may need to sell at a steep discount. Itâs also hard to figure out the actual value of collectibles. After all, thereâs no New York Stock Exchange for Pokemon cards. And if you do sell, youâll pay 28% tax on the gains. Stocks held long-term, on the other hand, are taxed at 15% for most middle-income earners.
Plus, thereâs also the risk of losing your entire investment if your collection is physically destroyed.
7. Junk Bonds
If you have a low credit score, youâll pay a high interest rate when you borrow money because banks think thereâs a good chance you wonât pay them back. With corporations, it works the same way.
Companies issue bonds when they need to take on debt. The higher their risk of defaulting, the more interest they pay to those who invest in bonds. Junk bonds are the riskiest of bonds.
If you own bonds in a company that ends up declaring bankruptcy, you could lose your entire investment. Secured creditors â the ones whose claim is backed by actual property, like a bank that holds a mortgage â get paid back 100% in bankruptcy court before bondholders get anything.
8. Shares of a Bankrupt Company
Bondholders may be left empty-handed when a corporation declares bankruptcy. But guess whoâs dead last in terms of priority for who gets paid? Common shareholders.
Secured creditors, bondholders and owners of preferred stock (itâs kind of like a stock/bond hybrid) all get paid in full before shareholders get a dime.
Typically when a company files for bankruptcy, its stock prices crash. Yet recently, eager investors have flocked in to buy those ultracheap shares and temporarily driven up the prices. (Ahem, ahem: Hertz.)
That post-bankruptcy filing surge is usually a temporary case of FOMO. Remember: The likelihood that those shares will eventually be worth $0 is high.
You may be planning on turning a quick profit during the run-up, but the spike in share prices is usually short-lived. If you donât get the timing exactly right here, you could lose big when the uptick reverses.
9. Gold and Silver
If youâre worried about the stock market or high inflation, you may be tempted to invest in gold or silver.
Both precious metals are often thought of as hedges against a bear market because theyâve held their value throughout history. Plus in uncertain times, many investors seek out tangible assets, i.e., stuff you can touch.
Having a small amount invested in gold and silver can help you diversify your portfolio. But anything above 5% to 10% is risky.
Both gold and silver are highly volatile. Gold is much rarer, so discovery of a new source can bring down its price. Silver is even more volatile than gold because the value of its supply is much smaller. That means small price changes have a bigger impact. Both metals tend to underperform the S&P 500 in the long term.
The riskiest way to invest in gold and silver is by buying the physical metals because theyâre difficult to store and sell. A less risky way to invest is by purchasing a gold or silver ETF that contains a variety of assets, such as mining company stocks and physical metals.
10. Options Trading
Options give you the right to buy or sell a stock at a certain price before a certain date. The right to buy is a call. You buy a call when you think a stock price will rise. The right to sell is a put. You buy a put when you think a stock price will drop.
What makes options trading unique is that thereâs one clear winner and one clear loser. With most investments, you can sell for a profit to an investor who also goes on to sell at a profit. Hypothetically, this can continue forever.
But suppose you buy a call or a put. If your bet was correct, you exercise the option. You get to buy a winning stock at a bargain price, or you get to offload a tanking stock at a premium price. If you lose, youâre out the entire amount you paid for the option.
Options trading gets even riskier, though, when youâre the one selling the call or put. When you win, you pocket the entire amount you were paid.
But if you end up on the losing side: You could have to pay that high price for the stock that just crashed or sell a soaring stock at a deep discount.
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What Are the Signs That an Investment Is Too Risky?
The 10 things we just described certainly arenât the only risky investments out there. So letâs review some common themes. Consider any of these traits a red flag when youâre making an investment decision.
Theyâre confusing. Are you perplexed by bitcoin and options trading? So is pretty much everyone else.If you donât understand how something works, itâs a sign you shouldnât invest in it.
Theyâre volatile. Dramatic price swings may be exciting compared with the tried-and-true approach of investing across the stock market. But investing is downright dangerous when everything hinges on getting the timing just right.
The price is way too low. Just because an investment is cheap doesnât mean itâs a good value.
The price is way too high. Before you invest in the latest hype, ask yourself if the investment actually delivers value. Or are the high prices based on speculation?
The bottom line: If you can afford to put a small amount of money in high-risk investments just for the thrill of it, fine â as long as you can deal with losing it all.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column. Send your tricky money questions to DearPenny@thepennyhoarder.com.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
There’s nothing fun about declaring bankruptcy, but those who emerge from it can be thankful for the opportunity to rebuild their personal finances without the burden of debt. Unfortunately, bankruptcy also does damage to your credit, making it difficult to get approved for credit cards and other lines of credit. Since credit cards are a good way to build or rebuild credit, we have the details for some credit cards to get after bankruptcy.
Secured Credit Cards
Secured credit cards generally have lower credit score requirements and often can be obtained post-bankruptcy. While they do require an upfront security deposit to open, they otherwise work just like traditional credit cards and can help you rebuild your credit. When choosing a secure credit card, look for one that lets you build toward unsecured credit status and reports to all three credit bureaus so it helps you positively impact your credit.
Credit Cards for Bad Credit
Secured credit cards are often considered bad debt credit cards because they’re targeted to people with poor or no credit. But you can also find credit cards that are approved for people with less-than-stellar credit and don’t require a security deposit. In return for the chance to get positive reporting on your credit report via one of these cards, you might have to pay an annual fee or deal with a high interest rate.
Credit Card for After Bankruptcy
Thereâs no single best credit card to get after a bankruptcy, but there are many options to consider. Carefully review the details of relevant credit card offers before making a decision for yourself.
OpenSky® Secured Visa® Credit Card
OpenSky® Secured Visa® Credit Card
Apply Now
on Capital Bank’s secure website
Card Details
Intro Apr:
N/A
Ongoing Apr:
17.39% (variable)
Balance Transfer:
N/A
Annual Fee:
$35
Credit Needed:
Fair-Poor-Bad-No Credit
Snapshot of Card Features
No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
Build credit quickly. OpenSky reports to all 3 major credit bureaus.
99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.
We have a Facebook community of people just like you; there is a forum for shared experiences, and insights from others on our Facebook Fan page. (Search âOpenSky Cardâ in Facebook.)
OpenSky provides credit tips and a dedicated credit education page on our website to support you along the way.
*View our Cardholder Agreement located at the bottom of the application page for details of the card
Card Details +
Annual Fee: $35
APR: 17.39% (variable)
Why we picked it: This card helps you build credit while still offering a fairly low interest rate and a refundable deposit for as little as $200 (some restrictions apply; see cardholder agreement for details).
The details: There is no credit check necessary to apply, and you can apply in less than 5 minutes. Your responsible use of the card is reported to all three credit bureaus each month. And when you need extra credit, you may be eligible for a credit line increase.
Drawbacks: There is an annual fee, which isn’t necessarily bad in exchange for building credit.
Read Our Full Review
First Progress Platinum Elite Mastercard Secured Credit Card
First Progress Platinum Elite Mastercard® Secured Credit Card
Apply Now
on First Progress’s secure website
Card Details
Intro Apr:
N/A
Ongoing Apr:
19.99% Variable APR for Purchases
Balance Transfer:
N/A
Annual Fee:
$29
Credit Needed:
Poor-No Credit
Rates and Fees
Snapshot of Card Features
Receive Your Card More Quickly with New Expedited Processing Option
No Credit History or Minimum Credit Score Required for Approval
Good for Car Rental, Hotels; Anywhere Credit Cards Are Accepted!
Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
Credit Line Secured by Your Fully-Refundable Deposit of $200 — $2,000 Submitted with Application
Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
Apply in just a few moments with no negative impact to your credit score; no credit inquiry will be recorded in your credit bureau file
Nationwide Program though not yet available in NY, IA, AR, or WI * See Card Terms.
Card Details +
Annual Fee: $29
APR: 19.99% Variable APR for Purchases
Why we picked it: With responsible use, this card can be a good place to start working to rebuild your credit. There is no minimum credit score required for approval, and it also reports to all three credit bureaus each month.
The details: You can secure your credit line by putting down a fully refundable deposit of $200 to $2,000 during the application process. When you pay off your balance, you can receive your deposit back. Its expedited processing option lets you receive your card more quickly, and you can apply in minutes with no negative impact to your credit score.
Drawbacks: While the APR isn’t super high for a bad-credit credit card, it’s still high enough to run up hefty interest charges. You’ll want to pay the balance off as often as possible to avoid that extra expense. The card is not yet available in all states.
Milestone Unsecured Mastercard
Milestone® Unsecured Mastercard®
Apply Now
on Milestone’s secure website
Card Details
Intro Apr:
N/A
Ongoing Apr:
24.90%
Balance Transfer:
N/A
Annual Fee:
$35 – $99*
Credit Needed:
Poor-Bad
Snapshot of Card Features
Easy pre-qualification process which does not affect your credit score
Choice of card image at no extra charge
Less than perfect credit is okay, even with a prior bankruptcy!
Mobile friendly online access from anywhere
Accepted nationwide, wherever Mastercard is accepted
Unsecured credit card, no deposit required
Protection from fraud, if your card happens to be lost or stolen
Card Details +
Annual Fee: $35 – $99*
APR: 24.90%
Why we picked it: It is possible to be approved with poor credit and a bankruptcy on your credit report, but you don’t have to start with a security deposit. Plus, you can choose your card image at no extra charge!
The details: Prequalification doesn’t require a hard credit inquiry, so you can find out if you’re a likely candidate for this card without impacting your credit. You can access your account via mobile to manage it, helping you stay on track with positive payment history and balance management, and the card comes with decent fraud protection.
Drawbacks: The annual fee can be pretty high depending on the terms you’re approved for. The interest rate is also fairly high, so you might not want to carry over large balances between statements.
Indigo Mastercard for Less Than Perfect Credit
Indigo® Mastercard® for Less than Perfect Credit
Apply Now
on Indigo’s secure website
Card Details
Intro Apr:
N/A
Ongoing Apr:
24.90%
Balance Transfer:
N/A
Annual Fee:
$0 – $99*
Credit Needed:
Poor-Bad
Snapshot of Card Features
Less than perfect credit histories can qualify, even with prior bankruptcy!
Choose your card design with chip technology at no additional cost
Quick pre-qualification available with no impact to your credit score
Easy pre-qualification process with fast response
24/7 access to your account, even on mobile!
Protection from fraud, if your card happens to be lost or stolen
Accepted nationwide wherever Mastercard is accepted
Card Details +
Annual Fee: $0 – $99*
APR: 24.90%
Why we picked it: You can prequalify for this card without impacting your credit, and thereâs no security deposit required.
The details: The APR is fairly steep, so you probably want to limit what balances you carry over each month. How much the annual fee is depends on your credit profile. However, it doesn’t require a security deposit.
Drawbacks: A potentially high annual fee and less-than-stellar APR make this a potentially expensive way to build credit.
Avant Credit Card
Avant Credit Card
Apply Now
on Avant’s secure website
Card Details
Intro Apr:
N/A
Ongoing Apr:
25.99% (variable)
Balance Transfer:
N/A
Annual Fee:
$39
Credit Needed:
Fair
Snapshot of Card Features
No deposit required
No penalty APR
No hidden fees
Fast and easy application process
Help strengthen your credit history with responsible use
Disclosure: If you are charged interest, the charge will be no less than $1.00. Cash Advance Fee: The greater of $10 or 3% of the amount of the cash advance
Avant branded credit products are issued by WebBank, member FDIC
Card Details +
Annual fee: $39
APR: 25.99% (variable)
Why we picked it: Thereâs no deposit required, no penalty APR, and no hidden fees.
The details: What you see is what you get with this card. With responsible use, you can strengthen your credit history.
Drawbacks: There is an annual fee and the variable APR can be a bit steep. You may also need fair credit to qualify.
Read Our Full Review
Surge Mastercard
Surge Mastercard® Credit Card
Apply Now
on Surge’s secure website
Card Details
Intro Apr:
N/A
Ongoing Apr:
See Terms*
Balance Transfer:
N/A
Annual Fee:
See Terms*
Credit Needed:
Fair-Poor-Bad
Snapshot of Card Features
All credit types welcome to apply!
Monthly reporting to the three major credit bureaus
See if youâre Pre-Qualified without impacting your credit score
Fast and easy application process; results in seconds
Use your card at locations everywhere that Mastercard® is accepted
Free online account access 24/7
Checking Account Required
Card Details +
Annual fee: See Terms*
APR: See Terms*
Why we picked it: All credit types are welcome to apply, and the pre-qualification process wonât impact your credit score.
The details: Surge can be used anywhere Mastercard is accepted. , and the card reports to all three major credit bureaus.
Drawbacks: You need a checking account to apply. Because the card is specifically for people with less-than-perfect credit scores, interest rates and terms may be a bit high.
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How to Choose a Credit Card After Bankruptcy
After a bankruptcy, improving your finances and rebuilding your credit should be a priority. Do some research and pick a credit card that helps you achieve that goal. If you feel that you can’t responsibly manage credit right now, you should wait until you’re in a better place to submit a credit card application.
Since secured credit cards require an upfront security deposit, you’ll need to determine how much money you can afford. Most secured cards will give you a credit line that equals the amount of your original deposit.
While high APRs and annual fees are common with all of these credit cards, you should compare rates across several cards to find the ones that are best for your spending habits.
Some cards for bad credit are designed to exploit people using unfair terms or policies that make it difficult to rebuild your finances. You may even start receiving multiple credit card offers in the mail after your bankruptcy is discharged. Watch out for red flags to avoid getting burned.
And remember: A credit card can only build credit if you use it correctly. You should keep your credit card balance below 30% of the available credit limit and make all your payments on time to help build your credit.
The post Easiest Credit Cards to Get After Bankruptcy appeared first on Credit.com.
When you think âcredit score,â you probably think âFICO.â The Fair Isaac Corporation introduced its FICO scoring system in 1989, and it has since become one of the best-known and most-used credit scoring models in the United States. But it isn’t the only model on the market.
Another popular option is called VantageScore, the product of a collaboration between the three major credit reporting agencies: Experian, Equifax, and TransUnion. It uses similar scoring methods to FICO but yields slightly different results.
Each scoring model has multiple versions and multiple applicationsâyou donât have just one FICO score or one VantageScore. Depending on which bureau creates the score and what type of agency is asking for the score, your credit score will vary, sometimes siginifcantly. One credit score isnât more âaccurateâ than another, they just have different applications. Learn more about the different types of credit scores below.
When you sign up for ExtraCredit, you can see 28 of your FICO scores from all three credit bureaus. Your free Credit Report Card, on the other hand, will show you your Experian VantageScore 3.0.
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What Is a VantageScore?
VantageScore was created by the three major credit reporting agenciesâExperian, Equifax, and TransUnion. It uses similar scoring methods to FICO but yields slightly different results.
One of the primary goals of VantageScore is to provide a model that is used the same way by all three credit bureaus. That would limit some of the disparity between your three major credit scores. In contrast, FICO models provide a slightly different calculation for each credit bureau, which can create more differences in your scores.
FICO vs. VantageScore
So, what are the differences between an Experian credit score calculated using VantageScore and one calculated via the FICO model? More importantly, does the score used matter to you, the consumer? The answer is usually no. But you might want to look at different scores for different needs or goals.
Is Experian Accurate?
Credit scores from the credit bureaus are only as accurate as the information provided to the bureau. Check your credit report to ensure all the information is correct. If it is, your Experian credit scores are accurate. If your credit report is not accurate, youâll want to look into your credit repair options.
Our free Credit Report Card offers the Experian VantageScore 3.0 so you can check it regularly. If you want to dig in deeper, you can sign up for ExtraCredit. For $24.99 per month, you can see 28 of your FICO scores from all three credit bureaus. ExtraCredit also offers rent and utility reporting, identity monitoring and theft insurance, and more.
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Understanding the Scoring Models
FICO and VantageScore aren’t the only scoring models on the market. Lenders use a multitude of scoring methods to determine your creditworthiness and make decisions about whether or not to give you credit. Despite the numerous options, FICO scores and VantageScores are likely the only scores you’ll ever see yourself.
Hereâs what FICO uses to determine your credit score:
Payment history. Whether or not you pay your bills in a timely manner is critical, as this factor makes up around 35% of your score.
Credit usage. How much of your open credit you have usedâwhich is called credit utilizationâaccounts for 30% of your score. Keeping your utilization below 30% can help you keep your credits core healthy.
Length of credit. The average age of your creditâand how long you’ve had your oldest accountâis a factor. Credit age accounts for around 15% of your score.
Types of credit. Your credit mix, which refers to having multiple types of accounts, makes up around 10% of your score.
Recent inquiries. How many entities have hit your credit history with a hard inquiry for the purpose of evaluating you for credit is a factor for your score. It accounts for about 10% of your credit score.
VantageScore uses the same factors, but weighs them a little differently. Your VantageScore 4.0 will be most influenced by your credit usage, followed by your credit mix. Payment history is only âmoderately influential,â while credit age and recent inquiries are less influential.
Each company also gathers its data differently. FICO bases its scoring model on credit data from millions of consumers analyzed at the same time. It gathers credit reports from the three major credit bureaus and analyzes anonymous consumer data to generate a scoring model specific to each bureau. VantageScore, on the other hand, uses a combined set of consumer credit files, also obtained from the three major credit bureaus, to come up with a single formula.
Both FICO and VantageScore issue scores ranging from 300 to 850. In the past, VantageScore used a score range of 501 to 990, but the score range was adjusted with VantageScore 3.0. Having numerical ranges that are somewhat consistent helps make the credit score process less confusing for consumers and lenders.
Your score may also differ across the credit bureaus because your creditors arenât required to report to all three. They may report to only one or two of them, meaning each bureau likely has slightly different information about you.
Variations in Scoring Requirements
If you don’t have a long credit history, VantageScore is the score you want to monitor. To establish your credit score, FICO requires at least six months of credit history and at least one account reported to a credit bureau within the last six months. VantageScore only requires one month of history and one account reported within the past two years.
Because VantageScore uses a shorter credit history and a longer period for reported accounts, it’s able to issue credit ratings to millions of consumers who wouldn’t yet have a FICO Score. So, if you’re new to credit or haven’t been using it recently, VantageScore can help prove your trustworthiness before FICO has enough data to issue you a score.
The Significance of Late Payments
A history of late payments impacts both your FICO score and your VantageScore. Both models consider the following.
How recently the last late payment occurred
How many of your accounts have had late payments
How many payments you’ve missed on an account
FICO treats all late payments the same. VantageScore judges them differently. VantageScore applies a larger penalty for late mortgage payments than for other types of credit payments.
Because FICO has indicated that it factors late payments more heavily than VantageScore, late payments on any of your accounts might cause you to have lower FICO scores than your VantageScores.
Impact of Credit Inquiries
VantageScore and FICO both penalize consumers who have multiple hard inquiries in a short period of time. They both also conduct a process called deduplication.
Deduplication is the practice of allowing multiple pulls on your credit for the same loan type in a given time frame without penalizing your credit. Deduplication is important for situations such as seeking auto loans, where you may submit applications to multiple lenders as you seek the best deal. FICO and VantageScore don’t count each of these inquiries separatelyâthey deduplicate them or consider them as one inquiry.
FICO uses a 45-day deduplication time period. That means credit inquiries of a certain typeâsuch as auto loans or mortgagesâthat hit within that period are counted as one hard inquiry for the purpose of impact to your credit.
In contrast, VantageScore only has a 14-day range for deduplication. However, it deduplicates multiple hard inquiries for all types of credit, including credit cards. FICO only deduplicates inquiries related to mortgages, auto loans, and student loans.
Influence of Low-Balance Collections
VantageScore and FICO both penalize credit scores for accounts sent to collection agencies. However, FICO sometimes offers more leniency for collection accounts with low balances or limits.
FICO 8.0 also ignores all collections where the original balance was less than $100 and FICO 9.0 weighs medical collections less. It also doesn’t count collection accounts that have been paid off. VantageScore 4.0, on the other hand, ignores collection accounts that are paid off, regardless of the original balance.
What Are FAKO Scores?
FAKO is a derogatory term for scores that aren’t FICO Scores or VantageScores. Companies that provide FAKO scores don’t call them this. Instead, they refer to their scores as âeducational scoresâ or just âcredit scores.â FAKO scores can vary significantly from FICO scores and VantageScores.
These scores aren’t completely valueless, though. They can help you understand where your credit score stands or whether it’s going up or down. You probably don’t want to shell out money for such scores, though, and you do want to ensure the credit score provider is drawing on accurate information from the credit bureaus.
The post Experian Credit Score vs. FICO Score appeared first on Credit.com.
Reality TV star Ty Pennington, known for changing peopleâs lives with his energetic personality on the original version of Extreme Makeover: Home Edition, is now looking to cash in on his own home makeover. Pennington has just listed his house — a beautiful and bright 1927 Craftsman in Venice, Calif. — for $2,795,000.
Pennington put his home design expertise to good use and carefully restored the property earlier this year with the help of his trusted interior designer, Patrick Delanty. Delanty, also known to be Halle Berry’s designer, has long been working alongside Ty Pennington, serving as his design director for Extreme Makeover and running his on-air design segments, most notably his presence on The Oprah Winfrey Show, Rachel Ray Show, NBCâs Nightline and Good Morning America.
Just like its reality TV star owner, the home is bright, cheerful and quirky, with colorful interiors exuding creativity and style. The property is listed by Patrice Meepos of Compass.
Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo
Tucked away on a one-way street near the beach, Venice Boardwalk, canals and Abbot Kinney’s hot spots, the original 1927 dwelling has 3 beds, 3 baths, and a sizable living room with decorative fireplace, along with a sunken family room with large windows overlooking a newly landscaped, private back yard with koi pond.
Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo
The ground level hosts the kitchen, laundry room, and bedroom with direct backyard access, as well as a full bath. On the upper level, there’s a master retreat and a second bedroom.
Ty Pennington added quite a few special touches to the 2,102-square-foot home, including bamboo flooring, baths adorned in vintage-inspired ceramic tile, a master bath sporting a standalone shower and an antique cast-iron freestanding tub, kitchen with concrete countertops and a wraparound, porcelain-tiled porch. There’s also a beautiful backyard that looks like a great place to entertain guests.
Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo Ty Pennington’s house in Venice, CA. Image credit: Anthony Barcelo
While Ty Pennington did not return to host HGTV’s 2020 version of Extreme Makeover: Home Edition (which is hosted by Modern Family‘s Jesse Tyler Ferguson), you can catch the two time Emmy award winner in his other home improvement series, Trading Spaces — which recently restarted airing after a 10-year hiatus.
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The post Extreme Makeover’s Ty Pennington Lists Bright and Beautiful Venice Beach Home appeared first on Fancy Pants Homes.
Millions of Americans struggling to make their monthly mortgage payments because of COVID-19 have received relief through the Coronavirus Aid, Relief, and Economic Security Act.
But mortgage forbearance is only temporary, and set to expire soon, leaving many homeowners who are still struggling perplexed on what to do next.
Enacted in March, the CARES Act initially granted a 180-day forbearance, or pause in payments, to homeowners with mortgages backed by the federal government or a government-sponsored enterprise such as Fannie Mae or Freddie Mac. Furthermore, some private lenders also granted mortgage forbearance of 90 days or more to financially distressed homeowners.
According to the Mortgage Bankers Association, 8.39% of loans were in forbearance as of June 28, representing an estimated 4.2 million homeowners nationwide.
So what are affected homeowners to do when the forbearance goes away? You have options, so it’s well worth contacting your lender to explore what’s best for you.
âIf you know you’re going to be unable to meet the terms of your forbearance agreement at its maturity, you should call your loan servicer immediately and see what options they may be able to offer to you,” says Abel Carrasco, mortgage loan originator at Motto Mortgage Advisors in St. Petersburg, FL.
Exactly whatâs available depends on the fine print in the terms of your mortgage forbearance agreement. Hereâs an overview of some possible avenues to explore if you still canât pay your mortgage after the forbearance period ends.
Extend your mortgage forbearance
One simple option is to contact your lender to request an extension.
Homeowners granted forbearance under the CARES Act can request a 180-day extension, giving them a total of 360 days of forbearance, according to the Consumer Financial Protection Bureau.
The key is to contact your lender well before your forbearance expires. If you let it expire without an extension, your lender could impose penalties.
âIf you just stop making regular, scheduled payments, you could have a late mortgage payment on your credit,” warns Carrasco. “That could severely impact refinancing or purchasing another property in the immediate future and potentially subject you to foreclosure.â
Keep in mind, though, a forbearance simply delays payments, meaning theyâll still need to be made in the future. It doesnât mean payments are forgiven.
Refinance to lower your mortgage payment
Mortgage interest rates are at all-time lows, hovering around 3%. So if you can swing it, this may be a great time to refinance your home, says Tendayi Kapfidze, chief economist at LendingTree.
Refinancing could come with some hefty fees, however, ranging from 2% to 6% of your loan amount. But it could be worth it.
A lower interest rate will likely lower your monthly payment and save you thousands over the life of your mortgage. Dropping your interest rate from 4.125% to 3% could save more than $40,000 over 30 years, for example, according to the Consumer Financial Protection Bureau.
âLenders have tightened standards, though, so you will need to show that you are a good candidate for refinancing,â Kapfidze says. Youâll need a good credit score of 620 or higher.
As long as youâve kept up your end of the forbearance terms, having a mortgage forbearance shouldnât affect your credit score, or your ability to refinance or qualify for another mortgage.
Ask for a loan modification
Many lenders are offering an assortment of programs to help homeowners under hardship because of the pandemic, says Christopher Sailus, vice president and mortgage product manager at WaFd Bank.
âLenders quickly recognized the severity of the economic situation due to the pandemic, and put programs into place to defer payments or help reduce them,â he says.
A loan modification is one such option. This enables homeowners at risk of default to change the terms of their original mortgageâsuch as payment amount, interest rate, or length of the loanâto reduce monthly payments and clear up any delinquencies.
Loan modifications may affect your credit score, but not as much as a foreclosure. Some lenders charge fees for loan modifications, but others, like WaFd, provide them at no cost.
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Watch: 5 Things to Know About Selling a Home Amid the Pandemic
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Put your home on the market
It may seem like a strange time to sell your home, with COVID-19 cases growing, unemployment rising, and the economy on shaky ground. But, itâs actually a great time to sell a house.
Pending home sales jumped 44.3% in May, according to the National Association of Realtors娉 Pending Home Sales Index, the largest month-over-month growth since the index began in 2001.
Home inventory remains low, and buyer demand is up with many hoping to jump on the low interest rates. Prices are up, too. The national median home price increased 7.7% in the first quarter of 2020, to $274,600, according to NAR.
So if you can no longer afford your home and have plenty of equity built up, listing your home may be a smart move. (Home equity is the market value of your home minus how much you still owe on your mortgage.)
Consider foreclosure as a last resort
Foreclosure may be the only option for many homeowners, especially if you fall too behind on your mortgage payments and canât afford to sell or refinance. In May, more than 7% of mortgages were delinquent, a 20% increase from April, according to mortgage data and analytics firm Black Knight.
âWhen to begin a foreclosure process will vary from lender to lender and client to client,â Sailus says. âCurrent and future state and federal legislation, statutes, or regulations will impact the process, as will the individual homeownerâs situation and their ability to repay.â
Foreclosures wonât begin until after a forbearance period ends, he adds.
The CARES Act prohibited lenders from foreclosing on mortgages backed by the government or government-sponsored enterprise until at least Aug. 31. Several states, including California and Connecticut, also issued temporary foreclosure moratoriums and stays.
Once these grace periods (and forbearance timelines) end, and homeowners miss payments, they could face foreclosure, Carrasco says. When a loan is flagged as being in foreclosure, the balance is due and legal fees accumulate, requiring homeowners to pay off the loan (usually by selling) and vacating the property.
âAbsent participation in an agreed-upon forbearance, deferment, repayment plan, or loan modification, loan servicers historically may begin the foreclosure process after as few as three months of missed mortgage payments,â he explains. âThis is unfortunately often the point of no return.â
The post Is Your Mortgage Forbearance Ending Soon? What To Do Next appeared first on Real Estate News & Insights | realtor.com®.
People invest with one goal in mind: To earn a good return on their investment. Returns can be determined by the type of investment, the timing and the risks associated with it. That means returns can vary wildly, often making it hard for investors to plan for their financial future. So just what exactly is a good return on investment?
Buying stocks has traditionally been considered a risky but high probability way to earn a good return. Looking at the performance of a market index like the S&P 500 can help lend a sense what kind of return an investor can expect during an average year.
Dating back to the late 1920s, the S&P 500 index has returned, on average, around 10% per year. Adjusted for inflation thatâs roughly 7% per year.
Hereâs how much a 7% return on investment can earn an individual after 10 years. If an individual starts out by putting in $1,000 into an investment with a 7% average annual return, they would see their money grow to $1,967 after a decade. So almost double the original amount invested.
For financial planning purposes however, investors should keep in mind that that doesnât mean the stock market will consistently earn them 7% each year. In fact, S&P 500 share prices have swung violently throughout the years. For instance, the benchmark gauge tumbled 38% in 2008, then completely reversed course the following March to end 2009 up 23%. Factors such as economic growth, corporate performance and share valuations can affect stock returns.
Why Your Money Loses Value if You Donât Invest it
Itâs helpful to consider what happens to the value of your money if you simply hang on to cash.
Keeping cash can feel like a safer alternative to investing, so it may seem like a good idea to deposit your money into a savings account–the modern day equivalent of stuffing cash under your mattress. But cash slowly loses value over time due to inflation; that is, the cost of goods and services increases with time, meaning that cash has less purchasing power.
Interest rates are important, too. Putting money in a savings account that earns interest at a rate that is less than the inflation rate, that money loses value every single day as well. This is why, despite the risks, investing money is often considered a better alternative to simply saving it, as it can grow at a faster rate.
Pay a little, invest in a lot.
Distributor, Foreside Fund Services, LLC
What Is a Good Rate of Return for Various Investments?
CDs
Certificates of deposit (CDs) are considered a very safe investment because thereâs a fixed rate of return. That means thereâs relatively little riskâbut investors also agree to tie their money up for a predetermined period of time. CDs are illiquid, in other words.
But generally, the longer money is invested in a CD, the higher the return. Many CDs require a minimum deposit amount, and larger deposits tend to be associated with higher interest rates.
Itâs the low-risk nature of CDs that also means that they earn a lower rate of return than other investments, usually only a few percentage points per year. But they can be a good choice for investors with short-term goals who need a relatively safer investment vehicle.
Here are the weekly national rates compiled by the Federal Deposit Insurance Corporation (FDIC) as of Jan. 4, 2021:
Non-Jumbo Deposits
National Avg. Annual Percentage Yield
1 month
0.04
3 month
0.07
6 month
0.10
12 month
0.16
24 month
0.21
36 month
0.25
48 month
0.27
60 month
0.33
Jumbo Deposits (â¥$100,000)
National Avg. Annual Percentage Yield
1 month
0.05
3 month
0.08
6 month
0.11
12 month
0.17
24 month
0.22
36 month
0.26
48 month
0.28
60 month
0.34
Bonds
Bonds are considered to be safe investments. Purchasing a bond is basically the same as loaning your money to the bond-issuer, like a government or business.
Hereâs how it works: A bond is purchased for a fixed period of time, investors receive interest payments over that time, and when the bond matures, the investor receives their initial investment back.
Generally, investors earn higher interest payments when bond issuers are riskier. An example may be a company thatâs struggling to stay in business. But interest payments are lower when the borrower is trustworthy, like the U.S. government. Government bonds, on average, return around 5% annually.
Stocks
Stocks can be purchased in a number of ways. But the important thing to know is that a stockâs potential return will depend on the specific stock, when itâs purchased, and the risk associated with it. Again, the general idea with stocks is that the riskier the stock, the higher the potential return.
This doesnât necessarily mean you can put money into the market today and assume youâll earn a large return on it in the next year. But based on historical precedent, your investment may bear fruit over the long-term. Because the market on average has gone up over time, bringing stock values up with it. As mentioned, the stock market averages a return of roughly 7% per year, adjusted for inflation.
Real Estate
Returns on real estate investing vary widely. It mostly depends on the type of real estateâif youâre purchasing a single house versus a real estate investment trust (REIT), for instanceâand where the real estate is located.
As with other investments, it all comes down to risk. The riskier the investment, the higher the chance of greater returns and greater losses. Historically, the rate of return on average properties has been similar to that of the stock market, according to one study. That study found that the return on homes have been between 8.6% and 10% per year .
High or Best Return on Investment Assets
For investors who have a high risk tolerance (theyâre willing to take big risks to potentially earn high returns), some investments are better than others. For example, investing in a CD isnât going to reap a high return on investment. So for those who are looking for higher returns, riskier investments are the way to go.
Remember the Principles of Good Investing
Learn more â
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SoFi Invest® The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individualâs specific financial needs, goals and risk profile. SoFi canât guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . The umbrella term âSoFi Investâ refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated InvestingâThe Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (âSofi Wealthâ). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (âSofi Securities). 2) Active InvestingâThe Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation. 3) Digital AssetsâThe Digital Assets platform is owned by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business. For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, http://www.sofi.com/legal. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market. External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.
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The post What Is Considered a Good Return on Investment? appeared first on SoFi.
Try these free TV apps out and see which works best for you.
Owned by Amazon, IMDb TV (formerly Freedive) features a host of full episodes of your favorite current and classic TV shows as well as an array of movies.
While there are ways to download YouTube content for offline viewing, proceed with caution: Many of these sites and apps are full of malware.
The kids (or kids at heart) can check out Nickelodeon classics like âThe Fairly Odd Parentsâ and âDora the Explorer.â
Since the service is ad-supported, you can expect to watch a couple minutes of ads every 10 minutes or so. The experience is pretty similar to watching normal television.
12 Free TV Apps That Will Help You Cut Cable
NBCUniversal launched this streaming service, which includes over 7,500 hours of free content, in July 2020. Chris Brantner is a contributor to The Penny Hoarder. Senior writer Nicole Dow contributed to this article.
1. Crackle
And you arenât confined to squinting at your phoneâs screen or gathering the family around the old iPad to watch your favorite TV series and movies â you can download apps to your Smart TV or even your Xbox or PlayStation consoles.
If youâre a fan of shows like âThe Office,â âLaw and Order: SVU,â or âSaturday Night Live,â you can watch them on this streaming service.
2. Tubi TV
The library is solid and has started offering popular Fox TV series like âThe Masked Singerâ and âGordon Ramsayâs 24 Hours to Hell and Back.â
Whether you want it now or later, Xumo offers live TV and on-demand options.
The catalogue includes some binge-worthy sci-fi hits like âLostâ and âFringe.â
Youâre there anyway â why not get paid to play video games? Here are four simple ways to start earning real cash for virtual play.
3. Pluto TV
Almost all of the networks and cable TV channels have their own free apps for you to download â although many charge you to actually watch current content.
Users can then select which news segments they want to watch from categories like sports, weather or entertainment. NewsON is compatible with iOS and Android phones and tablets, as well as Roku and Amazon Fire TV.
Luckily, there are more options than ever for replacing your traditional cable setup. Many free streaming services have stepped up to offer access to content overlooked by subscription-based services.
The Crunchyroll app is supported by Apple, Android and Windows mobile devices, as well as by gaming consoles, Chromecast, Apple TV and Roku.
Pro Tip
You can even tap the âLive TVâ button to watch whatâs currently airing on your local PBS station.
Customers can stream Peacock on a variety of platforms, including LG Smart TVs, Vizio SmartCast TVs, Roku, Google and Apple devices and Playstation and Xbox consoles.
Both live TV and on-demand news broadcasts can be streamed from over 275 local news affiliates in 160 markets. The broadcasts are available for up to 48 hours after they air, so even if you donât catch the news as it happens, you can catch up later.
Xumo is available on most smart TVs and Roku and for download on iOS and Android devices.
4. NewsON
Crunchyroll is a great app for anyone with an interest in anime. Of course, when it comes to anime content, you have to be watchful with your younger children, as a lot of it is geared toward teens (and sometimes even adults).
Twitch hosts user-created channels and streams focused on video games and other esports. It features a built-in chat feature, so users can chat with other streamers in real time.
Got a library card? You have access to even more entertainment options (besides the obvious, books). Check out these library apps for free access to movies, TV shows and more.
Pro Tip
Content on the app must be streamed and cannot be downloaded.
Tubi TVâs library is updated regularly, and the service claims to add new content every week. The Tubi TV app works on more than 25 devices, including Android and iOS, Roku, Apple TV, Xbox, Samsung Smart TVs and Amazon Fire TV.
6. PBS Kids
Yes, YouTube. YouTube apps are compatible with just about every device that has a screen, and the service features videos to choose from on nearly any topic imaginable.
Streaming video isnât always just about entertainment. The NewsON app provides hundreds of local and national news streams.
Pro Tip
There is a paid premium feature, but the free Crunchyroll service has thousands of hours of popular series like the âDragon Ballâ franchise, âAttack on Titan,â âNarutoâ and âOne Piece.â
For a free streaming service, Crackleâs library is truly impressive. Crackle even has a handful of original series to its name. Best of all, Crackle works on nearly all mobile devices, streaming boxes and smart TVs.
7. Xumo
In 2018, the Funny Or Die began publishing on Vox Mediaâs Chorus and now uses the YouTube Player.
While there are thousands of free streams, Twitch also features premium features for a monthly subscription. Twitch apps are compatible with PCs, iOS and Android devices, game consoles, Chromecast and Fire TV.
Or if you just want to veg out, switch over to their Binge menu for a seemingly endless stream of TV series, like âThe Hillsâ and âMystery Science Theater 3000.â
But it also includes more than 160 free channels, including themed ones in case youâre in the mood for action movies or comedies â you can watch the Funny Or Die channel here, too.
Pro Tip
Sure, there are the usual big names in streaming services available for a monthly fee, but itâs possible to kick subscription fees entirely.
8. Crunchyroll
Like Pluto, you can choose from an assortment of major network news channels that are live streaming. This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
A division of FOX Entertainment, Tubi TV has deals with major studios like Paramount Pictures, Metro-Goldwyn-Mayer (MGM) and Lionsgate. It also features lots of foreign and independent productions.
Most of those videos are not exactly premium content, but there are still plenty of full-length films, documentary series and curated channels that provide cost-free entertainment for the whole family.
9. Twitch
One of the go-to names not just in free streaming but in streaming video in general is Crackle. The cost-free service has a variety of content, ranging from classic TV shows like âBewitchedâ and âBarney Miller,â as well as the newer âSnatchâ series. It also has hundreds of films from major studios.
Many of the free TV apps offer âpremiumâ channels â if you see that word, expect to pay for those services.
Pro Tip
While Twitch is popular with children, parents should beware: Twitch streams are somewhat unregulated and can sometimes contain adult language or content.
The free version of IMDbTV is ad-supported, so youâll have to sit through a few commercial breaks.
Videos from many of PBSâs most popular series are available for streaming including âCurious George,â âWild Krattsâ and âSesame Street.â The PBS Kids app is supported for Android, Windows and iOS phones and tablets.
10. IMDb TV
Pluto TV offers TV channels of linear content much like a cable package
Like Tubi TV, Pluto TV has advertisements similar to the ad load of normal TV.
As cable subscription prices rise higher and higher and customer satisfaction ratings dive lower and lower, cutting the cable has never been more popular.
With so many free streaming options out there, itâs easier than ever to cut the cord and save big. Whether youâre looking to keep up with the news, find a good movie for date night or entertain your kids with educational content, a streaming service exists to ensure you can do so without paying a dime.
11. YouTube
For anyone with even a passing interest in gaming and esports, Twitch is the go-to free streaming service.
The go-to streaming app for comedy programming is Funny or Die. Founded in 2007 by contemporary comedy giants Will Ferrell and Adam McKay, it has since grown to be a full-blown production house featuring original content from big names in show business.
Although Peacock offers paid premium options, the free version includes current and classic TV shows, movies, news, sports, kidsâ shows, Spanish-language programs and even select episodes of Peacock originals.
12. Peacock
Kids need free streaming content, too. PBS has a PBS Kids Video app that provides hundreds of hours of educational and enriching content for the youngest members of the family. The app has a colorful, child-friendly interface, which makes it easy for kids to take control themselves.
Pluto TV boasts a large list of supported devices including iOS and Android devices, Amazon Fire TV, Roku, Apple TVand Chromecast devices and Android TV.
It is available in the United States on the IMDb app, the IMDb website, the Amazon Prime Video app and Amazon Fire TV devices.
Of course, there are some rather shady options out there that stream pirated content. But weâve rounded up free, legal streaming apps that provide no-strings-attached cable-cutting solutions.
There are dozens of classic TV, movie and sports channels â and even some highly curated streams of niche content.
If youâre looking for breaking news, you can choose from an assortment of major network news channels that are live streaming. Anime and manga fans are likely already familiar with Crunchyroll. It specializes in mostly Japanese content, but it also features films and series from all over the world. Crunchyroll boasts a library of thousands of anime films and series, many of which are hard to find on other streaming services.
Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners.
So, youâre looking for a new bank account.
Youâve got several factors to consider â ATM access, interest rates, monthly fees, minimum balances, mobile app reviews, and more.
Another factor to consider: bank promotions. These are cash bonuses you can earn when opening a new checking or savings account with a bank or credit union during the promotion window, meeting any specific criteria and keeping the account open at least long enough to earn the extra cash.
While a savings or checking bonus shouldnât be your top reason to choose a bank, donât rule it out entirely. After all, wouldnât it be nice to fund your shiny new account with some extra cash?
Many banks offer such sign-up bonuses, but often, these bonuses arenât advertised, meaning finding the best bank account bonuses can be tricky. Thatâs why we did some digging for you and found some hefty cash offers.
Best Bank Promotions of January 2021
Weâve researched the best cash bonuses available this month so you donât have to. Below, youâll find our favorite checking and savings account bonuses.
Keep an eye on what it takes to qualify, as well as any limitations. Direct deposit and minimum balances are commonly factors in securing these bonuses. Also pay attention to any monthly fees the account might carry; over time, these could weigh out the actual cash bonus. Otherwise, happy bank bonus shopping!
1. Aspiration Account: $100
Bonus amount: $100
How to get the bonus: To earn your $100, hereâs all you need to do: Open your Aspiration account and deposit at least $10. Aspiration will send you a debit card associated with the account. Use the Aspiration debit card to make at least $1,000 of cumulative transactions within the first 60 days of opening your account. Thereâs no need to spend extra money â just use your card to buy groceries and pay your utilities.
Where to sign up: Enter your email address here, and link your bank account.
When youâll get the bonus: Allow up to 120 calendar days from account opening to receive the bonus; you must have completed the requirements within the first 60 days.
The fine print: With Aspiration, your money is FDIC insured and under a military-grade encryption. The account offers up to 1.00% APY on savings and allows fee-free withdrawals at more than 55,000 ATMs. There are no hidden fees with Aspiration (monthly fees are on a âPay What is Fairâ policy, and that can be zero every month!), and youâll earn cash back when you spend at socially conscious businesses.
No offer expiration.
2. TD Bank Beyond Checking Account: $300
Bonus amount: $300
How to get the bonus: Open a new TD Beyond Checking account. You must receive a total of $2,500 or more via direct deposit within 60 days of opening your new account.
Where to sign up: Visit this TD Checking page. Click the orange âopen accountâ button, and follow the instructions to open a TD Beyond Checking account.
When youâll get the bonus: The $300 bonus will be deposited into your account within 140 days of opening.
The fine print: While this bonus offer sounds too good to be true, it is definitely attainable. However, only open the account if you regularly get sizable monthly deposits or can maintain a healthy minimum balance. Thatâs because the account charges a monthly maintenance fee, but TD will waive the fee if you receive monthly direct deposits of $5,000, keep a minimum daily balance of $2,500 or maintain a combined balance of $25,000 across all your TD bank accounts.
TD fees â and the bankâs capacity for waiving them â extend to ATMs. You wonât face fees for making withdrawals at TDâs own ATMs, and itâll reimburse all fees for withdrawing at non-TD ATMs as long as you keep your daily balance at $2,500 or more.
No offer expiration.
3. TD Bank Convenience Checking Account: $150
Bonus amount: $150
How to get the bonus: Open a new TD Convenience Checking account. You must receive a total of $500 or more via direct deposit within 60 days of opening your new account.
Where to sign up: Visit this TD Checking page. Click the orange âopen accountâ button, and follow the instructions to open a TD Beyond Checking account.
When youâll get the bonus: The $150 bonus will be deposited into your account within 140 days of opening.
The fine print: While this bonus offer sounds too good to be true, it is definitely attainable. Unlike the TD Bank Beyond Checking account, this checking account option is easier for financial beginners to manage. You only need to maintain a minimum balance of $100 to have the monthly maintenance fee waived. And if youâre between the age of 17 and 23, there are no minimum balance requirements and no monthly maintenance fee.
However, the Convenience Checking account does not earn interest; the Beyond Checking account does.
No offer expiration.
4. Bank of America Advantage Banking Account: $100
Bonus amount: $100
How to get the bonus: Open a new Bank of American Advantage Banking account online using the offer code DOC100CIS. You must then set up and receive two qualifying direct deposits, each totaling $250 or more, within 90 days of opening the new account. This offer is only available to new Bank of America personal checking account customers.
Where to sign up: Visit the offer page and use the offer code DOC100CIS when opening the account.
When youâll get the bonus: Bank of America promises to âattemptâ to deposit the bonus into the account within 60 days of satisfying all requirements. However, while the âattemptâ language may seem suspect, we could not find traces of reviews citing unpaid bonuses.
The fine print: A qualifying direct deposit means the direct deposit must be regular monthly income, whether through salary, pension or Social Security benefits. Deposits through wire transfer, apps like Venmo or ATM transfers will not qualify.
Advantage Banking accounts come in three varieties: SafeBalance, Plus and Relationship. All three carry monthly maintenance fees that can be waived:
To waive the SafeBalance monthly maintenance fee of $4.95, enroll in Preferred Rewards.
To waive the Plus monthly maintenance fee of $12, receive a qualifying minimum direct deposit, maintain minimum daily balance requirements or enroll in Preferred Rewards.
To waive the Relationship monthly maintenance fee of $25, maintain the minimum combined balance in all linked accounts or enroll in Preferred Rewards.
Offer expires June 30, 2021.
5. Associated Bank Access Checking Account: Up to $500
Bonus amount: Up to $500
How to get the bonus: Open a new Associated Access Checking account with a minimum deposit of $25 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:
Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
Average daily balances of $10,000 or more will earn a $500 bonus.
Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.
When youâll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.
The fine print: Must be a new Associated Access Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.
The account requires a minimum deposit of $25, charges $4 a month if you require paper statements and does not earn interest.
Offer expires May 31, 2021.
6. Associated Bank Balanced Checking Account: Up to $500
Bonus amount: Up to $500
How to get the bonus: Open a new Associated Balanced Checking account with a minimum deposit of $25 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:
Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
Average daily balances of $10,000 or more will earn a $500 bonus.
Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.
When youâll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.
The fine print: Must be a new Associated Balanced Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.
The account requires a minimum deposit of $100 and does not earn interest.
Offer expires May 31, 2021.
7. Associated Bank Choice Checking Account: Up to $500
Bonus amount: Up to $500
How to get the bonus: Open a new Associated Choice Checking account with a minimum deposit of $25 and receive direct deposits totaling at least $500 within 90 days of opening your account. Bonus values will vary based on the sum of the average daily balance of all Associated Bank deposit accounts from days 61 to 90:
Average daily balances of $1,000 to $4,999.99 will earn a $200 bonus.
Average daily balances of $5,000 to $9,999.999 will earn a $300 bonus.
Average daily balances of $10,000 or more will earn a $500 bonus.
Where to sign up: Visit this Associated Bank account sign-up page and select the appropriate account.
When youâll get the bonus: You will receive the bonus as a deposit to your account within 120 days of account opening.
The fine print: Must be a new Associated Choice Checking customer. If easy access to a physical branch is important to you, note that the bank has locations in Illinois, Minnesota and Wisconsin, but members have free access to MoneyPass ATMs nationwide. Account must remain open for a minimum of 12 months; if you close it early, Associated Bank reserves the right to deduct the paid out bonus before account closure.
The account requires a minimum deposit of $100. This account is the only Associated option that earns interest and offers complimentary checks.
Offer expires May 31, 2021.
8. Chase Total Checking Account: $200
Bonus amount: $200
How to get the bonus: Open a new Chase Total Checking account as a new Chase customer. Within 90 days of opening the account, have a qualifying direct deposit made into the account from your employer or the government.
Where to sign up: Visit this page on Chaseâs website to sign up for the account and receive the $200 bonus. You can also open the account at a Chase location near you.
When youâll get the bonus: Chase will deposit the $200 bonus into your account within 10 business days after you meet the criteria. This is the fastest turnaround of any banking bonus included on this list.
The fine print: Direct deposits from person-to-person payments do not qualify for the sake of this bonus. The Total Checking account carries a $12 monthly service fee, but you can have it waived if you receive direct deposits each month totaling $500 or more, keep a minimum balance in the account at the start of each day of at least $1,500, or keep a minimum balance across all your Chase accounts at the start of each day of at least $5,000.
If you close the account within six months of opening, Chase will deduct the bonus amount at closing.
Offer expires April 14, 2021.
9. Chase Savings Account: $150
Bonus amount: $150
How to get the bonus: Open a new Chase Savings account as a new Chase customer. Within 20 days of opening the account, deposit at least $10,000 in new money and then maintain a balance of at least $10,000 for 90 days.
Where to sign up: Visit this page on Chaseâs website to sign up for the account and receive the $150 bonus. You can also open the account at a Chase location near you.
When youâll get the bonus: Chase will deposit the $150 bonus into your account within 10 business days after you meet the criteria. This is the fastest turnaround of any banking bonus included on this list.
The fine print: The new money deposited into the account cannot be $10,000 that you already hold in another Chase account. The Chase Savings account carries a $5 monthly service fee, but you can have it waived if you keep a daily balance of at least $300 at the start of each day, have $25 or more in Autosave, have an associated Chase College Checking account for Overdraft Protection, have an account owner who is 18 or younger or link one of several Chase checking accounts.
If you close the account within six months of opening, Chase will deduct the bonus amount at closing.
Offer expires April 14, 2021.
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10. Citibank Basic Banking Package: $200
Bonus amount: $200
How to get the bonus: Open a new checking account in the Basic Banking Package. Within 30 days, deposit $5,000 in funds that are new to Citibank. Maintain a minimum balance of $5,000 for 60 days in a row.
Where to sign up: Click âapply nowâ for the Basic Banking Package on this page to have the bonus applied.
When youâll get the bonus: Citibank pays out the cash bonus into your account within 90 days of meeting the criteria.
The fine print: The deposited funds must be new to Citibank, meaning they canât come from another Citibank account. Citibank charges a $12 monthly service fee, but you can have it waived in one of two ways:
Make a qualifying direct deposit and a qualifying bill payment during the statement period.
Maintained a combined average monthly balance of $1,500 in all linked accounts.
Citibank also waives the fee if you are 62 or older. Sometimes, it pays to be living in those golden years.
Rates and promotions may vary by location; verify your promotion details by entering your ZIP code on the site.
Offer expires January 5, 2021.
11. Citibank Account Package: $400
Bonus amount: $400
How to get the bonus: Open a new checking account in the Account Package. Within 30 days, deposit $15,000 in funds that are new to Citibank. Maintain a minimum balance of $15,000 for 60 days in a row.
Where to sign up: Click âapply nowâ for the Account Package on this page to have the bonus applied.
When youâll get the bonus: Citibank pays out the cash bonus into your account within 90 days of meeting the criteria.
The fine print: The deposited funds must be new to Citibank, meaning they canât come from another Citibank account. A savings account is required with this package. Citibank charges a $25 monthly service fee, but you can have it waived if you maintain a combined monthly average of $10,000 or more in all linked accounts.
Rates and promotions may vary by location; verify your promotion details by entering your ZIP code on the site.
Offer expires January 5, 2021.
12. Citibank Priority Account Package: $700
Bonus amount: $700
How to get the bonus: Open a new checking account in the Priority Account Package. Within 30 days, deposit $50,000 in funds that are new to Citibank. Maintain a minimum balance of $50,000 for 60 days in a row.
Where to sign up: Click âapply nowâ for the Account Package on this page to have the bonus applied.
When youâll get the bonus: Citibank pays out the cash bonus into your account within 90 days of meeting the criteria.
The fine print: The deposited funds must be new to Citibank, meaning they canât come from another Citibank account. A savings account is required with this package. Citibank charges a $30 monthly service fee, but you can have it waived if you maintain a combined monthly average of $50,000 or more in all linked accounts.
Rates and promotions may vary by location; verify your promotion details by entering your ZIP code on the site.
Offer expires January 5, 2021.
13. HSBC Premier Checking Account: Up to $600
Bonus amount: 3% cash bonus up to $600
How to get the bonus: Open a new HSBC Premier Checking account, then set up qualifying direct deposits into the account once per calendar month for six consecutive months. You will then receive a 3% cash bonus based on the amount of your qualifying direct deposits, with a max of $100 a month for six months.
Where to sign up: Use this offer page to sign up for the offer. Click âapply nowâ on the HSBC Premier Checking account.
When youâll get the bonus: You will receive your 3% cash bonus in your account approximately eight weeks after completing each monthâs qualifying activities.
The fine print: To get the bonus, you cannot have had an HSBC account from September 30, 2017 through September 30, 2020. You must also have been a U.S. resident for at least two years and must be 18 or older.
HSBC applies a monthly maintenance fee of $50 unless you maintain a balance of $75,000 across your accounts, receive monthly recurring deposits of $5,000 or more or have an HSBC US residential loan with an original loan amount of at least $500,000.
Offer expires January 7, 2021.
14. HSBC Advance Checking Account: Up to $240
Bonus amount: 3% cash bonus up to $240
How to get the bonus: Open a new HSBC Advance Checking account, then set up qualifying direct deposits into the account once per calendar months for six consecutive months. You will then receive a 3% cash bonus based on the amount of your qualifying direct deposits, with a max of $40 a month for six months.
Where to sign up: Use this offer page to sign up for the offer. Click âapply nowâ on the HSBC Advance Checking account.
When youâll get the bonus: You will receive your 3% cash bonus in your account approximately eight weeks after completing each monthâs qualifying activities.
The fine print: To get the bonus, you cannot have had an HSBC account from September 30, 2017 through September 30, 2020. You must also have been a U.S. resident for at least two years and must be 18 or older.
HSBC applies a monthly maintenance fee of $50 unless you maintain a balance of $75,000 across your accounts, receive monthly recurring deposits of $5,000 or more or have an HSBC US residential loan with an original loan amount of at least $500,000.
Offer expires January 7, 2021.
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How to Search for the Best Bank Offers and Promotions on Your Own
In the spirit of not listing approximately 193 bank promotions, we kept this list short and sweet â only highlighting the best bank promotions for checking and savings accounts.
But maybe youâre interested in banking with your local credit union, opening up a small business checking account or finding the perfect investment account? There are often bonus offers attached to these account openings, too.
The banks donât always make finding these promotions easy, so here are a few tips to help you get your hands on that cash bonus.
Check the bankâs website first. Sometimes itâll advertise its promotions right there. This is rare, but itâs worth a quick check â it could save you a ton of time.
If you donât have any luck, reach out to the bankâs customer service team through phone, email or chat. Let them know youâre shopping for a new account, and youâd like to know if itâs running any promotions. More often than not, the nice representative will send you a special link.
If this doesnât work, turn to your trusty friend Google. Look for the best bank promotions. Because youâll likely dig up some offers from third-party sites, youâll want to take a few minutes to make sure the offer:
Hasnât expired.
Is legitimate. Make sure the bank is FDIC-insured and has a positive Better Business Bureau rating. You can even read some online reviews.
Doesnât require outrageous qualifying activities. For example, it might not be realistic for you to maintain an average daily balance of $50,000 and carry out 60 qualifying debit card purchases before the end of your first 30-day statement cycle.
You can also reach out to your family, friends and social network to crowdsource bank recommendations. Sometimes banks have impressive referral programs, so both you and your friend could benefit from you signing up.
Overall, be smart. Donât let that promise of an account bonus blind you. Also, read the fine print so you donât get stuck paying high monthly fees, interest rates or closing penalties.
Will Opening a Bank Account Hurt Your Credit Score?
If youâre worried that opening a new bank account or closing an old one will hurt your credit score, donât be. Your bank accounts are not included in your credit report and therefore have no effect on your score, unless you have an outstanding negative balance that the bank turns over to a collection agency.
Sometimes when you go to open a new bank account, banks will do a soft credit check. However, that wonât affect your score.
Now, go enjoy your fresh new bank account and that nice cash bonus youâre about to pocket. Add it to your savings account, put it toward student loan payments or, heck, treat yourself!
Editorial Disclosure: This content is not provided by the bank advertiser. Opinions expressed here are the authorâs alone, not those of the bank advertiser. This site may be compensated through the bank advertiser Affiliate Program.
This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.
Inheriting property or other assets typically involves filing the appropriate tax forms with the IRS. Schedule K-1 (Form 1041) is used to report a beneficiaryâs share of an estate or trust, including income as well as credits, deductions and profits. A K-1 tax form inheritance statement must be sent out to beneficiaries at the end of the year. If youâre the beneficiary of an estate or trust, itâs important to understand what to do with this form if you receive one and what it can mean for your tax filing.
Receiving a Schedule K-1 tax form is something you should be prepared for if youâre the beneficiary of an estate or trust. Again, whether you will receive one of these forms depends on whether youâre a resident or nonresident alien and the amount of income the trust or estate generates. Talking to an estate planning attorney can offer more insight into how estate income is taxed as you plan a strategy for managing an inheritance.
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