Younger Americans have relatively low levels of debt, but high levels of debt stress. This is evidenced by the high rates of serious delinquency for younger holders of credit cards and car loans[6].
Consumer Debt by Ethnicity
American households of all ethnic backgrounds carry debt. Black and Native American households are likely to owe more relative to their household assets and to carry higher-interest debt[7].
Black and Hispanic households carry higher levels of credit card debt than white households.
Black and Hispanic households tend to have lower levels of credit card debt than white households. They also typically have lower incomes, which leaves fewer resources available to pay these debts.
💳 Read more: Master your finances with our guide on how to use credit cards wisely, featuring 11 essential rules to follow.
The median mortgage amount is $130,000 for white and Hispanic borrowers and $116,000 for Black borrowers. However, focusing solely on the median amount masks a deeper issue: Black, Hispanic, and Native American homeowners often face higher-cost and riskier mortgages compared to white borrowers[5].
Consumer Debt by Family Structure
A study conducted by credit reporting agency Experian revealed that U.S. consumers with children carry 14% to 51% more total debt than the national average[9].
Debt balances for credit cards and personal loans increased significantly with the number of children. Student loan balances remained relatively constant, suggesting that most individuals have completed their education and student loan payments by the time they start having children.
The average credit scores of parents fall slightly below the national average, suggesting that families are paying average or above-average interest rates.
👉 Learn more: Unveil the most effective credit building tools in our latest guide, designed to help you establish strong credit in 2025.
Consumer Debt by State
Debt levels vary significantly from state to state. California is the most indebted state with the average resident carrying $84,050 in debt.
State
Total Debt per Capita
AZ
$70,350
CA
$84,050
FL
$58,610
IL
$53,730
MI
$46,680
NJ
$64,820
NV
$69,290
NY
$57,560
OH
$44,610
PA
$48,030
TX
$56,610
There are several notable trends and reasons behind the geographical variations of consumer debt in the US.
Regional Variations in Income Distribution
According to the U.S. Census Bureau, the median household income in the United States in 2021 was $70,784. This figure remained relatively stable compared to the 2020 median household income of $71,186[9].
Median incomes varied across the four major regions of the United States. The West and Northeast regions had the highest median household incomes in 2021, with $79,430 and $77,472, respectively. The Midwest followed with $71,129, and the South had the lowest median household income at $63,368[9].
The difference in median household incomes between the Northeast and the West in 2021 was not statistically significant. This indicates that the income levels in these two regions were relatively similar. Additionally, none of the four regions experienced a statistically significant change in median household income between 2020 and 2021[9].
The variations in median household income across regions reflect underlying economic and demographic factors. Factors such as educational attainment, employment opportunities, and industrial composition can contribute to income disparities. Understanding these regional differences is crucial for policymakers in addressing economic inequality and promoting inclusive growth.
Cost of Living and Job Market Stability
Hawaii for example claimed the top spot as the most expensive state in terms of cost of living[10]. This high cost of living is contributing to high levels of consumer debt.
While New York had the fifth-highest cost of living nationwide, its residents held the most disposable income.
States with more stable job markets and lower unemployment rates, such as those in the Midwest and Plains regions, tend to have lower levels of consumer debt.
January 29, 2023 Posted By: growth-rapidly Tag:
Uncategorized
Buying a horse is not as expensive as you may think. However, be ready to spend a few thousand dollars. Not only that, there are several ongoing costs associated with owning a horse. As with any purchase, do your due diligence and speak with a financial advisor to make sure you’re making an informed decision.
How Much Does It Cost to Buy A Horse?
The cost of a horse can vary greatly depending on several factors, such as breed, age, training, and location. Prices can range anywhere from a few hundred dollars to hundreds of thousands of dollars. On average, you can expect to pay anywhere from $1,000 to $10,000 for a well-trained horse.
***Next Steps: Planning for Retirement can be overwhelming. We recommend speaking with a financial advisor. This tool will match you with up to three advisors.
After buying a horse, there are several ongoing costs that you should be prepared for:
Feed and hay: $100 to $300 per month
Farrier (hoof care): $50 to $150 per visit
Veterinarian: $300 to $1,000 annually for routine care, more for emergencies
Boarding: $300 to $1,500 per month
Equipment and supplies: $500 to $1,000 upfront and ongoing
Training and lessons: $50 to $200 per hour
Insurance: $100 to $500 per year
Note: These are rough estimates and prices may vary depending on your location and the needs of your horse.
Ways to Invest in Horses and Horse Racing
Buy a racehorse: You can purchase a racehorse and enter it into races. The cost of a racehorse can range from tens of thousands to millions of dollars.
Own a breeding farm: Invest in a breeding farm and breed and raise thoroughbreds for racing or other purposes.
Participate in racing partnerships: Join a racing partnership, where a group of individuals own and race horses together.
Invest in racetracks or horse racing companies: You can invest in publicly traded companies in the horse racing industry, such as racetracks or companies that provide services to the industry.
Bet on horses: Place bets on horses at racetracks or through online betting platforms.
Note: Horse racing is a high-risk investment and requires a significant amount of research and due diligence before making any investments. It is important to understand the financial and legal aspects of the industry and the specific investment you are considering.
Tips For Horse Buying
Determine your budget and needs: Set a budget for your horse purchase and determine what you need the horse for (riding, showing, racing, etc.).
Research different breeds: Research different breeds to find one that fits your needs and budget.
Find a reputable breeder or seller: Look for a reputable breeder or seller with a history of healthy, well-trained horses.
Arrange a pre-purchase examination: Have a veterinarian perform a pre-purchase examination to check the horse’s health and soundness.
Try the horse out: Take the horse for a trial ride to see how it handles and to make sure it is a good fit for you.
Ask for references: Ask the seller for references and speak with past buyers or trainers to get an idea of the horse’s background and behavior.
Consider insurance: Consider purchasing horse insurance to protect your investment.
Have a contract: Make sure to have a written contract that includes all the terms of the sale and any warranties or guarantees.
Take your time and do your research to ensure that you make an informed decision when buying a horse.
Put Your Money to Work
Managing your money effectively starts with careful planning. With SmartAsset, you can get matched up with three advisors who can empower you to make smart financial decisions. SmartAsset also helps take the mystery out of retirement planning by answering some of the most commonly asked questions in a simple, personalized way. Learn more about how SmartAsset can help you find your advisor match and get started now.
Having more than one type of debt is common, and that’s especially true once you graduate from college and start your first “real job.” You may have credit card debt, an auto loan, and a mortgage payment to make once you buy your first home. It’s also common to have other random debts to cover, including student loans.
If you’re like many who took out loans during college, you will likely be paying them off after you graduate. In fact, 82% of students who borrowed loans expect to be making payments post-graduation, according to a recent College Ave Student Loans survey.
That said, you’ll want to make sure you’re balancing debt repayment with your savings goals along the way.
You’ll also want to make sure you’re paying down debts in the optimal order, or in a way that will help you save the most money on interest as possible while aligning with your goals. Which debts should you pay off first? Here’s a rundown of how to get the best results:
1. Pay Off High-Interest Debts
No matter which types of debt you have, credit card debt should be your first priority. Why? Because credit card debt is likely the most expensive debt you have by far.
Federal Reserve data shows the average credit card interest rate on accounts assessed interest came in at around 22% as of May 2023, yet your credit card could easily be charging higher rates than the average.
To save as much money as possible, you should strive to pay as much as you can toward high-interest credit card bills each month. You can also pay down credit card debt faster with the help of a debt consolidation loan or a 0% APR balance transfer credit card.
2. Other Unsecured Debts
Other unsecured debts like personal loan debt should come next in the debt payoff pecking order. After all, unsecured debts tend to have higher interest rates than secured debts like auto loans. In fact, the Federal Reserve also reported that the average interest rate on a 24-month personal loan came in at 11.48% as of May 2023, compared to the average rate of 7.81% on a 60-month auto loan.
Ideally, you’ll start paying more toward personal loan debt and other unsecured debts after all credit card debt is entirely paid off, although you should make at least the minimum payment on all your bills throughout the entire process.
3. Next Up, Student Loans
The next debt you’ll want to tackle is your student loans. I suggest focusing on these loans after other unsecured debts, since federal student loans (and many private student loans) come with low fixed interest rates and monthly payments that will not change over time. If you have federal student loans, you may even want to look into income-driven repayment plans.
If you’re hoping to pay down student loans faster or just want to save money on interest, you can also consider refinancing your student loans to get a shorter repayment timeline, a lower monthly payment, or both. Just remember that refinancing federal student loans can mean losing access to income-driven repayment plans and federal protections like deferment and forbearance.
4. Remaining Debt
Once you have paid off or substantially paid down all your other debts, you can focus your efforts on secured debts you have like mortgage loans and auto loans. These debts should be dealt with last since they are secured with collateral and tend to offer lower interest rates as a result. For example, you can consider paying more than the minimum on your mortgage, a car loan, or both until they’re paid off completely.
Then again, you may want to pay off debts with extremely low interest rates as slowly as possible to free up more cash flow for living expenses and investments. If you took out a mortgage in January of 2021 when the average interest rate on a 30-year, fixed rate home loan was as low as 2.65%, for example, it makes sense to make the minimum payment on that debt and invest your extra cash instead.
Other Financial Considerations
It’s important to make sure you balance debt repayment with other financial considerations. After all, focusing too much on debt repayment early in life can leave you behind when it comes to investing for retirement or saving up for a first home.
While you’ll want to eliminate credit card debt and other high-interest debts as quickly as you can, even if you have to stop saving and investing for a while, you can pay down student loan debt and secured debts at a slower pace while saving and investing for the future along the way.
Finally, make sure you have adequate emergency savings throughout your entire debt payoff journey, or that you begin saving for emergencies as soon as you can. Without a fully funded emergency fund, you can end up relying on credit cards and other loans to get by and ruin your debt payoff progress in the process.
How much should you save? While most experts recommend having an emergency fund that can cover three to six months of expenses, it’s okay to start small if you have to.
EXPERT TIP
Try saving a few hundred dollars per month until you have a few thousand saved, then work toward saving up at least three months of expenses over time.
Final Thoughts
Having more than one type of debt is how it works for most people, especially when you’re young and in the early stages of your career. When it comes to paying it off, however, you’ll want to make sure you have a concrete plan that can help you reduce interest charges and get where you want to be.
Focusing on credit card debt and other unsecured debts first always makes sense, since these debts aren’t secured by an asset and tend to charge much higher interest rates. You can focus on student loans next, followed by other secured debts you have like a home loan or car loan.
In the meantime, make sure you have an adequate emergency fund and invest in it for retirement. After all, debt won’t last forever if you’re serious about repayment, and saving and investing early can help you benefit from compound interest and avoid using credit cards for surprise expenses. Creating a budget to track these factors is your best bet.
If you need help creating one, or simply don’t know where to start, use this budget worksheet as your guide – you’ll reach financial freedom in no time.
Our kids’ school sent out a list of summer reading programs that we’ll look to get our kids involved in. It’s great that so many books stores and organizations are getting in on the action that was once the domain of Pizza Hut and their Book It program!
This is for kids Pre-K through 6th grade and can be done through the BOOK IT! app. You use the app to set goals, track your progress, and then redeem rewards such as a personal pan pizza. Program ends in August.
Read any four books from the summer reading adventure feature in-store or online and then write about the books you’ve read in your summer reading adventure logbook. Then bring it to the store and get a Dog Man drawstring backpack, while supplies last.
Read every day for two weeks and get 10 free play points, which can be used to play games, win tickets, or redeemed for prizes. Program expires 12/31/025.
If you are a strong reader, join the Mensa Reading Program and read an entire list of books to earn a t-shirt and a certificate. It’s for the entire year, not just the summer, and there are multiple lists based on the age of your reader starting with Kindergarten and going through Grade 12.
Scholastic (All Ages)
Visit the summer zone in Scholastic Home Base, download the Home Base app (or use the webapp), and complete reading streaks to win virtual prizes, free books, and learn about author meetups. This program runs through September 12th.
Half Price Books (All Ages)
Complete a reading log and get a $5 in Bookworm Bucks that you can use at Half Price Books.
[Updated on January 30, 2025 with screenshots from FreeTaxUSA for the 2024 tax year.]
The previous post Split-Year Backdoor Roth IRA in FreeTaxUSA, Year 1 dealt with contributing to a Traditional IRA for the previous year and recharacterizing a previous year’s Roth IRA contribution as a Traditional IRA contribution. This post handles the conversion part in FreeTaxUSA. If you use TurboTax or H&R Block tax software, see:
We cover two example scenarios in this post. Here’s the first:
You contributed $6,500 to a Traditional IRA for 2023 in 2024. The value increased to $6,700 when you converted it to Roth in 2024. You received a 1099-R form listing this $6,700 Roth conversion.
You should’ve already reported the contribution part on your 2023 tax return by following Split-Year Backdoor Roth IRA in FreeTaxUSA, Year 1 last year. The IRA custodian sent you a 1099-R form for the conversion in 2024. This post shows you how to put it into FreeTaxUSA.
Here’s the second example scenario:
You contributed $6,500 to a Roth IRA for 2023 in 2023. You realized that your income was too high when you did your 2023 taxes in 2024. You recharacterized the Roth contribution for 2023 as a Traditional contribution before April 15, 2024. The IRA custodian moved $6,600 from your Roth IRA to your Traditional IRA because your original $6,500 contribution had some earnings. The value increased again to $6,700 when you converted it to Roth in 2024. You received two 1099-R forms, one for $6,600 and another for $6,700.
You should’ve already reported the recharacterized contribution on your 2023 tax return by following Split-Year Backdoor Roth IRA in FreeTaxUSA, 1st Year last year. The IRA custodian sent you two 1099-R forms, one for the recharacterization, and the other for the conversion. This post shows you how to put both of them into FreeTaxUSA.
If you’re married and both you and your spouse did the same thing, you should follow the steps below for both yourself and your spouse.
1099-R for Recharacterization
This section only applies to the second example scenario. If you contributed directly to a Traditional IRA for 2023 in 2024 and didn’t recharacterize (the first example scenario), please skip this section and jump over to the conversion section.
We handle the 1099-R form for recharacterization first. This 1099-R form has a code “R” in Box 7.
Find “Retirement Income (1099-R)” under the Income menu.
Click on the “Add a 1099-R” button.
It’s just a regular 1099-R.
Enter the 1099-R for the recharacterization exactly as you have it. Box 1 shows the amount transferred from the Roth IRA to the Traditional IRA when you recharacterized your 2023 contribution in 2024. Box 2a shows that the recharacterization isn’t taxable. Box 2b “taxable amount not determined” isn’t checked. The code in Box 7 is “R.” The “IRA / SEP / SIMPLE” box isn’t checked.
Your 1099-R shows 2024 but FreeTaxUSA says you should’ve reported it on your 2023 tax return. The problem is you didn’t have it back then. You couldn’t have reported something you didn’t have. Select the correct year and continue anyway.
The recharacterization wasn’t a rollover.
FreeTaxUSA shows some alerts. The zero taxable income on the 1099-R is correct. Code “R” in Box 7 is also correct. Although you didn’t include this 1099-R last year because you didn’t have it at that time, you don’t need to amend last year’s tax return if you reported the recharacterization in a different way when you followed Split-Year Backdoor Roth IRA in FreeTaxUSA, Year 1 last year. You may need to amend last year’s return only if you didn’t report the recharacterization last year at all.
You’re done with the 1099-R form for the recharacterization. Click on the “Add a 1099-R” button to add the other 1099-R for the conversion.
1099-R for Conversion
The 1099-R for the conversion has a code “2” in Box 7 if you’re under age 59-1/2 or a code “7” if you’re 59-1/2 or older.
It’s also a regular 1099-R.
Box 1 shows the amount converted to Roth. If you contributed to a Traditional IRA for 2024 in 2024 and converted in 2024 (a “clean” backdoor Roth) on top of converting the 2023 contribution in 2024, the amount on the 1099-R includes two years’ worth of contributions. It’s normal to have the same amount as the taxable amount in Box 2a when Box 2b is checked saying “taxable amount not determined.” Make sure to choose the correct code in Box 7 to match your 1099-R. The “IRA / SEP / SIMPLE” box is checked.
Your refund number drops after you enter the 1099-R. Don’t panic. It’s normal and temporary. The refund number will come up when we finish everything.
It’s not an inherited IRA.
It’s a Roth conversion. 100% of the amount on the 1099-R was converted from a Traditional IRA to a Roth IRA.
You are done with this 1099-R for the conversion. Repeat if you have another 1099-R. If you’re married and both of you converted to Roth, pay attention to whose 1099-R it is when you enter the second one. You’ll have problems if you assign both 1099-R forms to the same person when they belong to each spouse. Click on “Continue” when you have entered all the 1099-R forms.
Answer “Yes” here because you had a Traditional IRA contribution from last year.
Get the value for the first box from last year’s Form 8606 Line 14 (assuming that you did last year correctly). If you didn’t have a Form 8606 last year because you didn’t do it correctly, your basis is the amount of your 2023 Traditional IRA contribution minus any deduction you took on last year’s Schedule 1 Line 20. The total basis is $6,500 in our example.
The second box should be zero when you emptied all your Traditional IRAs after converting them to Roth and you don’t have any SEP or SIMPLE IRAs. If you had a few dollars of earnings posted in the Traditional IRA after you converted and you left them in the account, get the value from your year-end statement and put it in the second box. The software will apply the pro-rata rule.
The third box should also be zero when you made your 2024 contribution in 2024.
We didn’t take any disaster distribution.
Now continue with all other income items until you are done with income.
Clean Backdoor Roth On Top
If you did a “clean” backdoor Roth on top of converting the 2023 contribution in 2024 (contributed to a Traditional IRA for 2024 in 2024 and converted in 2024), the conversion part of the clean backdoor Roth is already included in the 1099-R form we just completed. Now we do the contribution part.
Find the “IRA Contributions” section under the “Deductions / Credits” menu.
Answer “Yes” to the first question. An excess contribution means contributing more than you’re allowed to contribute. We didn’t have that.
Enter the amount you contributed to the Traditional IRA for 2024 in the first box. Leave the answer to “Did you switch or recharacterize” at No. We converted. We didn’t switch or recharacterize. We didn’t repay any distribution either.
Your refund number goes up again after you enter the contribution.
We didn’t contribute to a SEP, solo 401k, or SIMPLE plan. Answer Yes if you did.
“Withdraw” means pulling money out of a Traditional IRA back to your checking account. Converting to Roth is not a withdrawal. Answer “No” here.
FreeTaxUSA shows the same page we saw before in the conversion section. Confirm and continue.
You see this screen only if your income falls below the income limit that allows a deduction for your Traditional IRA contribution. You don’t see this if your income is above the income limit. Answering “Yes” will make your contribution deductible but it will also make your conversion taxable. Although it works out to be a wash in the end, it’s less confusing if you answer “No” here and make the entire amount that could be deducted nondeductible.
It tells us we don’t get a deduction because our income is too high or because we chose to make our contribution nondeductible. This is as expected.
Taxable Income
You’re done with the 1099-R forms. Let’s look at how they show up on your tax return. Click on the three dots on the top right above the IRA Deduction Summary and then click on “Preview Return.”
Look for Lines 4a and 4b in your Form 1040.
Line 4a shows the amount on your 1099-R for the Roth conversion. Line 4b shows the taxable amount, which is the earnings between the time you contributed to your Traditional IRA and the time you converted it to Roth. The taxable amount on Line 4b would be zero if you didn’t have any earnings.
Form 8606
Go toward the end of the pop-up to find Form 8606. It shows these for our example:
Line #
Amount
1
7,000 (only if you also did a “clean” backdoor Roth on top, otherwise blank.)
2
6,500
3
The sum of Line 1 and Line 2
5
The same as Line 3
8
The amount on your 1099-R with a code 2 or 7
13
The same as Line 3
14
blank (or a small amount if your Traditional IRA had a small balance at the end of 2024)
16
The same as Line 8
17
Line 3 minus Line 14
18
The difference between Line 16 and Line 17
Form 8606
Troubleshooting
If you followed the steps and you are not getting the expected results, here are a few things to check.
The Entire Conversion Is Taxed
If you don’t have a retirement plan at work, you have a higher income limit to take a deduction on your Traditional IRA contribution. If you have a retirement plan at work but your income is low enough, you are also eligible for a deduction on your Traditional IRA contribution. FreeTaxUSA gives you the option to take a deduction if it sees that your income qualifies.
Part of your conversion could be taxed because you took a deduction on the Traditional IRA contribution last year or this year. You see whether you took a deduction by looking at Schedule 1 Line 20 on last year’s and this year’s tax returns.
You can’t change what you did last year but you can still decline the deduction this year by answering “No” on the “Do you want to take your IRA deduction?” page. Declining the deduction lowers the taxable amount in your Roth conversion.
Self vs Spouse
If you are married, make sure you don’t have the 1099-R and the IRA contribution mixed up between yourself and your spouse. If you inadvertently assigned two 1099-Rs to one person instead of one for you and one for your spouse, the second 1099-R will not match up with a Traditional IRA contribution made by a spouse. If you entered a 1099-R for both yourself and your spouse but you only entered one Traditional IRA contribution, you will be taxed on one 1099-R.
Say No To Management Fees
If you are paying an advisor a percentage of your assets, you are paying 5-10x too much. Learn how to find an independent advisor, pay for advice, and only the advice.
Traditionally, estate planning meant preparing a will and deciding how your physical and financial assets would be distributed among your heirs. But today, when most of our lives are stored online—from photographs and cryptocurrency to email accounts and blogs—digital estate planning is no longer optional; it’s essential.
Whether you’re a business owner, content creator, or a regular internet user, your digital footprint likely includes a range of valuable assets. These assets require the same attention and legal clarity as your home, SIPs, or retirement plans.
Even a mutual fund investment planner will tell you that securing your digital wealth is just as important as managing your physical portfolio. That’s why creating a comprehensive digital estate planning checklist is crucial in ensuring your digital legacy is protected and easily accessible to your beneficiaries.
What Is Digital Estate Planning?
Digital estate planning is the process of organizing and securing your digital assets to ensure they are accessible to the right people and protected from misuse after your death or incapacitation. It involves identifying all your digital properties, assigning beneficiaries, storing credentials safely, and legally authorizing access through estate planning documents.
It involves:
Identifying all your digital properties
Assigning beneficiaries
Storing credentials securely
Legally authorizing access through estate planning documents
What Qualifies as Digital Assets?
Unlike tangible assets, digital properties come with their own complexities. Many digital platforms have strict privacy policies and terms of service that restrict access after a user’s death. Without proper authorization or passwords, even your closest family members may not be able to retrieve valuable or sentimental items.
There are four major barriers to accessing digital assets:
Password Protection – Many accounts are protected by two-factor authentication or encryption.
Data Encryption – Even if files are found, decrypting them without a key is often impossible.
Privacy Laws – Federal laws such as the Stored Communications Act limit access to digital communications.
Terms of Service Agreements – Platforms like Google and Facebook have their own post-death policies.
A thorough digital estate planning checklist can help overcome these hurdles by granting legal access and simplifying navigation.
Emotional and Sentimental Value of Digital Assets
While financial value is a key consideration in estate planning, the emotional weight carried by certain digital assets is equally important. For many, their digital footprint tells the story of their life — from cherished family photos and heartfelt messages to personal journals and milestone achievements.
Imagine losing access to:
A late parent’s voice notes or video messages
Thousands of irreplaceable family photographs stored in the cloud
Personal blog entries chronicling years of experiences
These are not just files—they’re memories, legacies, and emotional treasures that form a deep connection between generations. Preserving them through proper planning ensures that your loved ones can revisit those memories, celebrate your life, and carry forward the values and lessons you’ve shared online.
A digital estate plan allows you to:
Safeguard digital memories from accidental deletion or legal inaccessibility
Provide your heirs with access to sentimental data that offers closure and connection
Specify which digital memories should be shared, archived, or kept private
In short, digital planning is not just about protection—it’s also about emotional preservation.
Why Digital Assets Require a Separate Estate Planning Strategy
Digital assets are harder to access than traditional ones. Here’s why:
Password Protection – Strong passwords and 2FA can lock out heirs
Data Encryption – Files may be unreadable without decryption keys
Privacy Laws – Legal barriers may prevent access to personal communications
Terms of Service Agreements – Platforms often prohibit third-party access post-death
A structured digital estate planning checklist can help overcome these hurdles.
Components of a Digital Estate Planning Checklist
Here’s what a strong plan should include:
1. Inventory of Digital Assets
Start by listing all digital assets you own, such as:
Email and cloud accounts
Social media accounts
Subscription services
Financial apps and digital wallets
Cryptocurrencies and NFTs
2. Store Passwords Securely
Use trusted password managers and avoid storing passwords in notebooks or unprotected digital files.
3. Back-Up Critical Files
Ensure important files are duplicated:
Use encrypted external hard drives
Create digital backups offline
Organize files for easy navigation
4. Legal Authorization
Ensure legal documents allow digital access:
Include digital access clauses in your will
Set up a digital trust if needed
Use proper estate planning templates
5. Appoint a Digital Executor
Choose someone who:
Understands tech
Respects your privacy
Can follow your digital instructions
6. Review and Update Regularly
Just like your SIP investment plan or mutual fund portfolio, update your digital estate plan:
Annually
After major life changes (marriage, business sale, etc.)
When adding new digital assets
Steps to Get Started with Digital Estate Planning
If you’re unsure where to begin, here’s a simplified starting point:
Audit Your Digital Life List down all accounts, devices, subscriptions, and assets.
Prioritize Identify what’s important financially, emotionally, or professionally.
Secure Access Use password managers and note device PINs, recovery emails, and 2FA settings.
Assign Responsibility Choose a trusted digital executor or nominee and inform them of your plan.
Document & Legalize Work with a financial planner and estate attorney to integrate digital clauses into your estate plan.
Store Everything Safely Keep your digital estate plan and credentials in a secure, encrypted location.
By taking these steps, you’ll remove future confusion, legal trouble, and emotional strain for your family tomorrow.
Role of Financial Professionals in Digital Estate Planning
You may already work with a retirement planner or wealth manager to secure your future. These professionals can also assist you in understanding the implications of digital wealth, especially in areas like:
Tax obligations on monetized digital content.
Converting crypto holdings into inheritable assets.
Navigating digital rights and royalties.
Integrating digital planning into your broader wealth strategy.
A coordinated approach between your financial consultants, estate attorney, and digital planning tools will offer the most secure outcome.
The Rising Demand for Digital Estate Planning Services
Given the complexities and legal uncertainties surrounding digital inheritance, many individuals are now turning to specialized digital estate planning services. These services provide secure vaults to store digital credentials, offer templates for legal documents, and ensure compliance with the latest privacy regulations.
Some platforms even allow users to assign digital heirs or offer post-death access via pre-scheduled verification systems.
While these services are growing in popularity, they should complement—not replace—a professionally drafted estate plan.
Don’t Let Your Digital Legacy Disappear
Without planning:
Important memories (photos, messages) can be lost
Crypto or online investments can become unrecoverable
Business assets (websites, IP) may go unmanaged
Proper digital estate planning ensures your online legacy doesn’t disappear with you.
As your digital footprint grows, so does the need to protect it with the same care and precision as your traditional assets. With a clear digital estate planning checklist, legal backing, and regular updates, you can make sure that your virtual life is passed on just as thoughtfully as your tangible one.
If you’re looking to take the first step in managing your legacy, Fincart can help. Our holistic financial advisory services don’t just cover traditional investment tools—we’re also equipped to guide you through digital asset planning.
Secure your digital future today—because your legacy deserves to be complete.
Understand what No Claim Bonus in Health Insurance really means, its risks, and why you shouldn’t rely on it as permanent coverage. Simple guide with examples.
When we talk about health insurance, most of us focus on things like premium, network hospitals, or claim settlement ratio. But one term that often excites policyholders is No Claim Bonus (NCB). Many people see NCB as a “reward” for staying healthy and not using their policy in a year.
But there’s a common misunderstanding here – many assume that this bonus becomes a permanent part of their coverage, and that can lead to serious issues later. In this post, let’s dive deep into what NCB really means, why it should not be treated as guaranteed coverage, and how to plan your health insurance accordingly.
No Claim Bonus in Health Insurance: Don’t Rely on It!
What is No Claim Bonus (NCB) in Health Insurance?
No Claim Bonus is a benefit given by insurance companies if you don’t make a claim in a policy year. Instead of giving you cashback or discounts, insurers usually reward you by increasing your sum insured without increasing your premium.
Two common types of NCB:
Cumulative Bonus
Your base sum insured increases by a fixed percentage (like 10% or 20%) every claim-free year.
Usually capped (e.g., up to 50% or 100% of base sum insured).
Discount on Renewal Premium
Instead of increasing the coverage, some policies reduce your premium for the next year.
In India, cumulative bonus is more commonly used in retail health insurance. For instance:
If you have a Rs.5 lakh health cover and get a 20% NCB every year, after 3 claim-free years, your total coverage becomes Rs.8 lakhs (Rs.5 lakhs base + Rs.3 lakhs NCB).
The Common Misconception: Treating NCB as Guaranteed Coverage
Many policyholders think the NCB addition is just like the base sum insured — fixed and permanent. But that’s not true.
NCB is conditional. It stays only as long as you don’t make a claim.
Once you file a claim, the NCB reduces or vanishes depending on the policy terms.
Example:
Let’s say:
Base Sum Insured: Rs.5 Lakhs
NCB Accrued over 2 years: Rs.2 Lakhs
Total Cover: Rs.7 Lakhs
Now, if you claim Rs.1 lakh in the current year, your NCB may reduce or reset. So, next year your cover may drop to just Rs.5 or Rs.6 lakhs — not the Rs.7 lakhs you thought you had.
This is where the real problem begins — people assume they’ll always have Rs.7 lakhs and don’t upgrade their base cover. When a big medical emergency strikes, they face underinsurance.
No Claim Bonus is a floating benefit. It is not guaranteed. If you rely on the NCB to plan your medical expenses or choose a smaller base sum insured thinking NCB will cover you, you’re exposing yourself to unnecessary financial risk.
Even the Insurance Regulatory and Development Authority of India (IRDAI) clearly mentions in its consumer education materials that:
“Cumulative Bonus is a reward and may reduce in case of claim.”
Why You Shouldn’t Depend on NCB for Long-Term Health Planning
Let’s understand this with a simple real-life situation:
Case Study:
Mr. Rajesh, 40 years old, took a health insurance plan with Rs.5 lakh sum insured and a 20% NCB clause. After 3 claim-free years, his coverage reached Rs.8 lakhs. He felt confident that Rs.8 lakhs was good enough.
In the 4th year, he was hospitalized for an emergency surgery costing Rs.6.5 lakhs. The insurer paid the entire claim from his policy (base + NCB).
But next year, his bonus reset. His policy cover dropped to Rs.5 lakhs again.
Now imagine if he needed a second surgery or a follow-up procedure in the same year or next year? He’d be short of funds.
He now had to either pay from his pocket or rush to buy a top-up cover (which could be costlier due to age and claim history).
Problems That Arise When You Rely Too Much on NCB
1. False Sense of Security
You may feel your policy is sufficient when NCB is at its peak. But NCB is not a guaranteed benefit. One claim can pull it back to zero.
2. Delayed Upgrade Decisions
People avoid increasing their base sum insured because NCB makes it look like their cover is growing. But this is temporary. It delays your decision to buy top-ups or add-on covers, which can prove costly later.
3. Reduced Coverage When You Need It Most
Medical conditions often strike in patterns — first a major event, then follow-ups, complications, rehab, etc. If your NCB gets consumed in the first round, you may not have enough for the next.
4. Avoiding Claims Just to Retain NCB
Some people hesitate to file even small claims, fearing NCB loss. But insurance is meant to reduce your out-of-pocket burden. Delaying treatment or paying unnecessarily just to retain bonus is a poor strategy.
What Should You Do Instead?
Here’s a more balanced approach:
1. Base Your Planning on Base Sum Insured
Always evaluate your health insurance adequacy based on the base sum insured, not with NCB additions. If your base sum insured is ?5 lakhs, plan as if that’s your actual protection — NCB is a bonus, not a shield.
2. Consider Super Top-Up Plans
Buy a super top-up health policy with a high deductible (say Rs.5 lakhs) and an additional cover of Rs.10–25 lakhs. These are affordable and offer better protection than relying on unpredictable NCB.
3. Use Riders Like NCB Protection (If Needed)
Some insurers offer riders that protect your NCB even if you make a claim (up to a limit). Evaluate them carefully — they come at a cost but can help if you want to maintain your coverage buffer.
4. Don’t Hesitate to Use Your Insurance
If there’s a legitimate need to claim, go ahead. NCB is just an add-on — your health and finances are more important than preserving a bonus.
Final Thoughts: NCB is a Reward, Not a Guarantee
No Claim Bonus is an attractive feature, but it should not distort your understanding of your actual insurance coverage. It is temporary, conditional, and revocable.
Make sure you buy health insurance with a sufficient base sum insured, and use NCB only as a bonus. Never build your healthcare plan around a benefit that disappears the moment you actually need your insurance.
Remember, health insurance is not just about saving money when you’re healthy — it’s about protecting your wealth when you’re not.
For Unbiased Advice Subscribe To Our Fixed Fee Only Financial Planning Service
This Fundrise review will examine how the platform works and review its pros and cons.
Fundrise allows non-accredited investors to invest in private real estate funds with initial investments as low as $10. The company has recently expanded to include private equity and private credit investments.
Pros
No accredited investor requirement.
Minimum investments as low as $10.
Multiple fund types are available.
Cons
Investments require careful assessment
How It Works
Fundrise made its reputation by offering real estate funds to smaller investors who aren’t eligible for funds restricted to accredited investors.
The company has introduced new offerings and now offers funds in four strategy categories.
Real estate funds offer multiple packages combining a range of real estate asset classes, serving several investment strategies.
Private credit is an investment strategy pooling funds to lend to companies, capitalizing on the high interest rate environment to deliver strong fixed-income returns.
Venture capital is a new investment strategy for Fundrise, offering investors exposure to a range of pre-IPO companies without the restrictions that often apply to private investors.
Retirement accounts include both conventional and Roth IRAs.
Fundrise is building from its base in real estate to develop a fully integrated platform for investing in alternative assets. The company currently manages over 20 different funds, and investors can choose among them.
Funds are accessible to private investors who previously had little access to these asset classes, with minimum investments as low as $10.
Fundrise currently has over 393,000 active investors. The total portfolio holdings are over $7 billion, and Fundrise has paid out over $344 million in dividends to investors.
Investor communication is a priority, and investors can expect real time performance reporting, frequent analyses of economic trends affecting Fundrise portfolios, updates on portfolio changes, and other materials designed to enhance transparency.
Fundrise offers several investment tiers with different minimum investments and different features.
Plan
Minimum Investment
Features
Starter
$10
Minimal customization, uses fixed portfolios
Basic
$1000
Allows investment via IRAs
Core
$5000
Complete customization and access to a dedicated investor relations team. Accredited investors only.
Advanced
$10,000
Access to customized strategies
Premium
$100,000
Minimal customization uses fixed portfolios
Each of these contains one or more of the Fundrise fund offerings. The difference is in the minimum investment and in the investor’s ability to tailor the portfolio to meet personal preferences and requirements.
Fundrise offers an extremely simple investment process. You open an account, fund it, and select your investment strategy, investment goal, and tier.
From there, Fundrise will manage your portfolio for you, offering suggestions and updates, or you will design your own portfolio if you have selected one of the more customizable tiers.
The Fundrise site gets generally high marks for being informative and easy to navigate.
Let’s take a closer look at what Fundrise offers in its various asset classes.
Real Estate
Fundrise offers several real estate investment plans, differentiated by the mix of income-focused and growth-focused assets in each fund.
Supplemental income funds are designed to produce consistent dividends over the life of the fund but may have lower long-term appreciation.
Balanced investing funds are highly diversified and place an equal weight on income and growth.
Long-term growth funds will generate dividends but place a higher priority on growth-focused assets.
Fundrise calls their real estate funds eReits, and they are structured as Real Estate Investment Trusts (REITs). The main difference between Fundrise eREITS and public REITs is that public REITs are liquid: they trade on public exchanges and can be sold at any time.
The funds managed by Fundrise do not trade on an exchange and are considered illiquid. You can’t just sell any time you want to. There may be a waiting period for redemption – redemptions typically occur at the end of each quarter – and some funds may have early withdrawal penalties.
Fundrise advises that its real estate funds should be considered long-term investments. Investors should not commit funds that they are not willing to tie up for five years or more.
Fundrise offers an exceptional range of real estate assets, including the following:
8,962 multifamily apartments in 10 US markets.
2,310,800 square feet of leased industrial space.
3,471 single-family apartments in 30 US markets.
Fundrise also has 296 active real estate projects and 147 completed projects. These projects are divided into four categories with increasing risk levels.
Fixed income investments generate immediate cash flow with an expected 6% to 8% annual return.
Core Plus investments take 6-12 months to deliver yield, but expect to deliver 8% to 10% annualized yield, with a slightly higher risk profile.
Value Add is a strategy of acquiring undervalued assets and investing additional capital to increase their value. Time to cash flow is 12-18 months, and projected returns are 10% to 12%.
Opportunistic investments carry the highest risk. They may take 2-3 years to first cash flow but are expected to generate 12% to 15% returns on an annualized basis.
All figures for expected return are projections, not commitments.
A Fundrise portfolio can contain a mix of these assets tailored to fit the user’s risk tolerance and investment strategy.
The number of different strategies and asset types can be confusing, but that variety also offers a very high level of diversification for the size of the investments involved and offers the ability to construct many different portfolio types.
🏢 Learn more: Explore the top-performing market opportunities with our guide to the best real estate stocks & ETFs available today.
Private Credit
Fundrise has introduced a private credit fund, which the company describes as “an opportunistic strategy for income-focused investors. The strategy is based on the fact that short term loans currently carry higher interest rates than long-term loans.
The fund is designed to capitalize on the current high interest rate environment by pooling investor funds and lending them to companies. Fundrise is leveraging its real estate experience by lending specifically for real estate projects.
The fund currently has $516 million in capital deployed in 90 debt deals covering real estate projects with 20,194 units at an average interest rate of 10.8%. It delivered a 13% annualized return in its first quarter[1].
This strategy is designed to be temporary and will only be viable while interest rates remain high. Fundrise does not expect this situation to last beyond 2024.
Venture Capital
Investment in privately held technology companies has traditionally been restricted to venture capital firms and well-heeled angel investors. Fundrise aims to upset that status quo with a venture capital fund that is accessible to any investor.
Called the innovation fund, this investment vehicle focuses on high-growth private companies, primarily in the tech sector. The fund primarily invests in four categories.
Modern data infrastructure
Artificial intelligence and machine learning
Development operations
Financial technology
The fund currently has over 35,000 investors, with over $100 million invested in 19 private companies.
As with any venture capital fund, profits are only gained when the companies held go public or are acquired. Investors should be prepared to hold the fund for a medium-term to long-term time frame.
Past Performance
Fundrise provides detailed information on investor returns. As you can see, average returns are solid, but some accounts deliver returns well below the average.
Fundrise also provides data on returns vs public REIT and the S&P 500. Again, these are averages and not all portfolios will deliver the same performance.
It’s clear from these figures that Fundrise can deliver very competitive returns. It’s also clear that these returns are not guaranteed.
You will need to pay close attention to the composition of your Fundrise portfolio, especially if you are using one of the more customizable plans. Evaluating these portfolios will require significant research and expertise.
Costs
Fundrise offers a generally low-cost investing model. There is an annual advisory fee of 0.15% or $1.50 for every $1000 you have invested. This fee does not cover actual fund management expenses.
There is also a management fee of 0.85%, which replaces the per-fund management fees charged by many fund managers.
This amounts to a total of 1%/year in management costs.
You may be required to pay a 1% early redemption fee if you choose to redeem your fund shares after a holding period of less than five years.
The Flagship Fund and the Income Fund do not charge any penalty for quarterly redemptions, but Fundrise can freeze redemptions during periods of economic stress.
There may be additional fees associated with specific projects. These will only be stated in the offering documents for the project, so you’ll need to read these carefully.
Risks
Any investment involves risks, and Fundrise is no exception. Be sure to consider these factors.
Low liquidity. Fundrise offers private funds designed to be held for a minimum of five years. Redemptions are available quarterly, but you may pay a fee if you redeem before five years have passed.
Possible redemption freeze. Fundrise reserves the right to suspend redemptions during periods of economic stress. You may not be able to withdraw your money.
Complex investment vehicles. Fundrise offers a huge range of options, particularly in their higher tiers. Accurately assessing these options may require time and expertise that many investors don’t have.
Fees may be higher than expected. The basic fee structure is reasonable and accessible, but individual projects may carry fees and restrictions of their own, which may not be as easy to find.
No assurance of performance. As with all investments, there is no assurance that a Fundrise portfolio will deliver the expected returns. While average returns are competitive, past results do not assure future performance, and some accounts have delivered below-average returns.
Tax issues. Income from your Fundrise portfolio will be taxed as regular income, not as capital gains or dividend income. You should remember this when comparing potential returns to those of other investments.
Unlike some competing platforms, Fundrise has not invested in projects in which the property developer failed to deliver the expected property and the money effectively disappeared. That doesn’t mean that it can’t happen in the future, but based on its track record to date, Fundrise has generally done a good job vetting and managing its projects.
User Reviews
Fundrise has an A+ rating from the Better Business Bureau (BBB), indicating a high degree of responsiveness to complaints. The site has only 8 reviews and 30 complaints, all resolved over the last three years. It’s not possible to draw a relevant conclusion from such a small sample.
Fundrise has 358 reviews on Trustpilot. The average is 2 of 5 stars, which is poor. At the same time, Trustpilot reports that 75% of reviews are five-star and 16% one-star, with the rest scattered between.
Reading the reviews, there’s a clear division between those who were happy with their returns and those who were not. This may stem in part from a failure to fully understand the nature of the investment from the start.
Some investors were clearly unhappy.
Others had more favorable experiences.
If you do choose to invest in Fundrise, it’s important to recognize that these funds are complex and they are actively managed: fund composition may change rapidly. There is no assurance that a given level of return – or any return – will be achieved.
Is Fundrise Right For You?
Fundrise offers accessible exposure to alternative asset classes such as real estate, private credit, and private equity. You can diversify into these asset classes with investments as low as $10.
That is a substantial advantage over platforms that are only available to accredited investors.
Just because you can, of course, doesn’t mean that you should. A Fundrise investment will tie up your funds for a substantial amount of time, and you may pay a penalty if you need to withdraw early.
If you’re considering a Fundrise investment, be sure that you are assessing not only the potential returns you could get from Fundrise but also the possible returns you could get from other uses of the same funds.
Fundrise has achieved a solid record in its 13 years of operation. Not all portfolios have been profitable and not all years have been positive returns, but the company has avoided scandal and major issues and is a viable option if you want to diversify into alternative asset classes without a major commitment.
If you’re considering a new investment in any asset class, it’s always a good idea to consult a professional investment advisor.
January 29, 2023 Posted By: growth-rapidly Tag:
Personal Finance
Walmart Neighborhood Market is a smaller grocery store format owned by Walmart, offering fresh produce, meat and dairy, bakery, deli, and pharmacy services, among other items. Walmart launched its Neighborhood Market store format in 1998.
Walmart is a multinational retail corporation that operates a chain of discount department stores, grocery stores, and more. It was founded in 1962 and is headquartered in Bentonville, Arkansas, United States. Walmart is one of the largest retailers in the world and offers a wide range of products including groceries, clothing, electronics, home goods, and more at affordable prices.
As of 2023, Walmart has over 11,000 stores worldwide, with over 5,000 in the United States alone. And there are over 550 Walmart Neighborhood Market stores in the United States.
Walmart Neighborhood Market stores typically provide the following services:
Grocery items including fresh produce, meat, dairy, bakery, and deli products.
Pharmacy services with prescription filling and related health services.
Select household essentials such as health and beauty products, cleaning supplies, and pet supplies.
Financial services including money transfers, bill payments, and tax preparation services.
Online grocery delivery and pickup options.
Optical services such as eye exams and eyeglass fittings.
The difference between Walmart Neighborhood Market and Regular Walmart Stores
Walmart Neighborhood Market stores are smaller in size compared to regular Walmart stores and primarily focus on grocery items, pharmacy and select household essentials, while regular Walmart stores offer a wider range of products including electronics, clothing, and home goods in addition to groceries.
In conclusion, the purpose of Walmart Neighborhood Market stores is to provide a convenient, smaller-format grocery shopping option for customers in local neighborhoods. They offer a selection of grocery items, pharmacy services, and select household essentials, aimed at making it easier for customers to get what they need quickly and efficiently. The focus on grocery items and essentials is meant to meet the needs of customers who live in urban or densely populated areas where a full-size Walmart store may not be feasible.
Work With the Right Financial Advisor
You can talk to a financial advisor who can review your finances and help you reach your goals (whether it is making more money, paying off debt, investing, buying a house, planning for retirement, saving, etc). Find one who meets your needs with SmartAsset’s free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.
Looking to make your money work harder? Explore the world of Certificates of Deposit (CDs), where you can secure solid returns while locking in your funds for a specific time. Discover the banks and credit unions offering the best CD rates, and find out how to maximize your savings with this low-risk investment option.
Certificates of Deposit (CDs) work similarly to online savings accounts or money market accounts in terms of offering great returns with zero risk. The difference is, CDs “lock your money up” for a specified period of time. To access your funds before the term ends, you’ll have to pay a penalty.
Although CDs offer less liquidity than a regular checking account or savings account, you might get a higher rate of return with this financial product. This is especially true if you open a CD account with a longer timeline; for example, a 60-month CD instead of a 12-month CD.
However, quite a few banks offer vastly superior CD rates to consumers who do their research. We compared dozens of banks and financial institutions to find the best CD rates today. If you’re on the hunt for a high-yield CD, start your search here.
Important Factors for Certificate of Deposit Accounts
CDs are for long-term savings. Since CDs lock your funds into the account for a specific term (usually 12 to 60 months), they aren’t ideal for money you might need to access in the short term.
CDs offer security for your funds. CD accounts are a secure place to stash your money and earn interest, thanks to FDIC insurance.
Check for CD fees. Most CDs charge fees if you need to access your money early. Make sure you understand these fees before opening this deposit account.
Online banks might offer better rates. Although brick-and-mortar banks offer their own CDs, you might find better rates through online banks. Compare legacy banks and online institutions to find the best CD rates.
If your goal is securing a superior short-term investment, the best CD rates are worth exploring. To help in your search, we compared many of the top financial institutions and online banks to find options with the most attractive rates and terms.
Find the Highest CD Rates from Banks and Credit Unions
Explore and contrast the top certificates of deposit (CDs) rates based on the highest Annual Percentage Yield (APY), spanning various terms including 3-month, 6-month, 1-year, 2-year, and 5-year options.
For The Current CD Rates…
Raisin (Save Better) partners with some of the top banks in the U.S. for the highest rates on CDs. Check below for the current rates.
Disclaimer: Interest rates are subject to daily fluctuations, and we strive to provide you with the most current information. Please verify the rates with your bank or credit union for accuracy!
The banks below made our ranking due to the interest rates they offer and other features.
PNC
CIT Bank
Discover®
Marcus by Goldman Sachs
Synchrony Bank
Best Certificate of Deposit Accounts – Reviews
There are a few factors to consider when choosing where to open a certificate of deposit. These include whether you want to open your CD in person or online, the rates and terms that apply, and the fees required to access your money early.
The following reviews explain the CD rates for each of the top banks we profile and other details you should know.
PNC Bank
PNC Bank offers a variety of popular banking products, including certificates of deposit. Its CDs don’t require any monthly maintenance fees, and you can monitor your account at any time online or with the BBVA mobile banking app.
CD terms range from 7 days to up to 10 years, and CDs with longer timelines pay higher CD rates. Note that penalties apply if you access your money early.
If you cash out your CD early, with a term of one year or less, you’ll pay $25 plus 1% of the amount withdrawn. If you cash out a CD with a longer-term early, you’ll pay $25 plus 3% of the amount you cash out.
CD Rates: Online CDs with terms from 11 months to 36 months currently pay up to 5.04% APY.
CIT Bank
CIT Bank is known for its popular high-yield savings account, known as Savings Builder, but it also offers an array of CDs with excellent terms. Its 11-month, no-penalty CD stands out since it offers an excellent return rate. There are also no penalties if you need to access your money early.
CIT Bank also offers term CDs with various other lengths, as well as jumbo CDs for deposits of $100,000 or more. None of its CDs come with account opening fees or account maintenance fees.
CD Rates: CIT Bank currently pays from 0.30% to 3.50% APY on their CDs, depending on the term you choose. Top rates are offered on their 18 month CDs, which pay out 3.00% APY, respectively. Additionally, they have an excellent 11-month No-Penalty CD at 3.50% APY as of the time of this writing (04/05/23.)
Discover
With Discover, you can open a CD that lasts anywhere from three months to 120 months. There are no fees to open a CD, including account opening fees or maintenance fees.
Discover also stands out due to the reasonable penalties it charges if you need to access your money early. CDs with a term of less than one year, incur a penalty at three months of simple interest. For a CD that lasts one to four years, the penalty for cashing out early is just six months of simple interest.
CD Rates: The 18-month CD is most rewarding, currently offering 4.00% APY. If you’re willing to part ways with your funds for just 24 months, you can earn a rate of 4.10% APY.
Marcus by Goldman Sachs
Marcus by Goldman Sachs is a popular online bank for personal loans and high-yield savings accounts, yet it also offers rewarding CDs. Terms for its CDs range from seven months to six years, with a minimum $500 deposit to get started.
Marcus by Goldman Sachs even offers a 10-day guarantee that says you can move your rate up if the advertised rates on the CD you purchased increase within 10 days.
CD Rates: Some of the best CD rates from Marcus by Goldman Sachs are for its 9-month CDs, which currently pay 4.30% APY. Marcus by Goldman Sachs also offers limited-time CD rate promotions, like 4.40% on an 18-month CD.
What Holds It Back: Marcus by Goldman Sachs is an online bank only, so you don’t have the option to open your CD in person.
Synchrony Bank
We chose Synchrony Bank for our ranking because it doesn’t impose a minimum balance requirement, yet has competitive CD rates. It offers a 15-day guarantee, which lets you raise your rate if the advertised rate increases within 15 days of your CD purchase.
Terms are available from three months to 60 months. Early withdrawal fees for their CDs are also reasonable. For example, early cash-outs on CDs with terms of 12 months or less charge 90 days of simple interest at the current rate.
CD Rates: Five-year (60-month) CDs currently pay 4.00% APY, and three-year (36-month) CDs pay 4.30% APY. They also have a 16 month paying 5.40%
What Holds It Back: Synchrony Bank CDs are meant to be opened and maintained online, so you consider a different bank if you’re hoping for a personalized experience or you prefer to bank in person.
How We Found the Best CD Rates
Finding the best CD rates is important if you want to maximize returns on your savings, yet there are other factors to consider before opening an account. We considered the following factors when compiling this list of banks with the best CD rates of 2025:
Rates and Terms
Although we gave preference to banks that apply the best rates to various CD terms, we focused on banks that offer at least one CD with an APY that is at least double the average CD rate nationwide.
BBVA didn’t score well in this category, yet we included them due to their lack of account fees and a strong reputation among major U.S. financial institutions.
Account Fees
We only considered banks that don’t charge fees to open a CD account. We also chose banks that don’t charge any monthly account maintenance fees.
Early Withdrawal Penalties
Most banks charge an early withdrawal fee if you cash out your CD early, so we looked for banks with reasonable penalties. We also gave preference to accounts or CD options that don’t charge any penalty for early withdrawals.
FDIC Insurance
Finally, we only included institutions in our ranking that offer FDIC insurance. This insurance secures up to $250,000 of CD funds per account holder.
What You Need to Know About Certificates of Deposit
If you have never opened a certificate of deposit before, you might wonder how they work and why people choose this option. Here are some important factors when considering a CD account.
CDs offer superior rates compared to other deposit products. According to recent figures from the FDIC, the average national CD rate for a 60-month term is about four times greater than the average national savings account rate.
Longer CDs offer better yields. Committing your money to a longer timeline can lead to considerably higher returns. FDIC data shows that the average APR for a one-month CD is only .02% — not much better than a basic savings account.
CD rates can go up or down over time. CD rates are determined based on the current interest rate environment, including benchmark interest rates. This means that you might get a better CD rate any time benchmark interest rates go up.
CD rates can be higher on larger amounts. If you have $100,000 or more to deposit, you might qualify for a “jumbo CD”. This type of CD requires a high minimum deposit, but banks are willing to pay higher APYs to lock in more funds.
Investing in a certificate of deposit (CD) is one of the safest ways to grow your money. CDs are low-risk investments with guaranteed returns, so they can be an excellent choice for those looking to diversify their portfolios and lock in higher interest rates.
When choosing a CD, it’s important to compare APYs (annual percentage yields) and terms between different banks and credit unions in order to get the best rate possible. Shop around for promotional offers or talk to financial advisors if you need help selecting the right CD for your needs.
With careful research and comparison, you’ll be able to find the CD that gives you the highest rate – and peace of mind – in the long run.
Some of the key factors you should consider when searching for the best CD rates include the length of the term, any penalties for early withdrawal, and minimum deposit requirements. You’ll also want to compare the annual percentage yields (APYs) of different products to ensure you’re getting a good return on your investment.
Certificate of deposit (CD) rates may fluctuate throughout the year as interest rates change. It’s important to keep an eye on current market conditions in order to maximize your earning potential by investing in CDs with higher rates.
Yes, it is possible to get a higher APY than what is advertised by banks and credit unions – especially if you are willing to negotiate or shop around at online banks that offer competitive CD rates. Additionally, certain banks may offer promotional offers or discounts that can result in even better returns on your investment.
When comparing CD rates, consider the length of the term, penalties for early withdrawal, minimum deposit requirements, and the annual percentage yield (APY). The APY reflects the effective interest rate, including compounding.
While advertised rates are set, some banks, especially online ones, may offer negotiation options or promotional offers. Shopping around and researching online banks could help you find institutions that offer competitive rates or special deals.
