A savings account is a place to store and grow your money.

But how does a savings account work? These deposit accounts offer benefits for you and for the financial institutions you use. Learn more about what savings accounts offer in terms of security for storing and growing your money, and how your cash works to help keep banks in business.

• How savings accounts work
• How compound interest works on a savings account
• How FDIC insurance protects a savings account
• How much it costs to have a savings account
• How to use your savings account

How savings accounts work

When you deposit money into a savings account with a bank, credit union or other financial institution, it uses your funds to earn revenue. Your bank typically makes money on your savings account by lending the cash to other customers for auto loans, home mortgages, personal loans, student loans and more. Customers who borrow from the bank pay interest in exchange for the money, creating income for the bank.

While the money in your savings account may earn money for the bank, it’s also earning money for you. With savings accounts, you can store your cash separately from the day-to-day spending in your checking account. You can open and fund a savings account with cash, a check or a direct deposit from another bank.

Federal law has strict cash reserves rules aimed at helping banks stay in business, so you generally can’t make more than six withdrawals per month from a savings account. This includes automatic withdrawals, online transfers, payments by debit card and more. Less-convenient modes of withdrawal, such as in-person or ATM transactions, won’t count toward that limit. While the Federal Reserve paused this rule in 2020 amid the COVID-19 pandemic, it may reappear as the economy recovers.

Despite the withdrawal rules, a savings account can still benefit you and your financial institution. Banks provide an accessible and generally secure place to keep your money, but there are trade-offs: You won’t earn as much interest as you might with other types of accounts.

How compound interest works on a savings account

When you open a savings account, you may earn one of two types of interest: simple interest or compound interest.

For bank accounts with simple interest, the interest rate only applies to money deposited in your savings account, known as your principal.

Compound interest, on the other hand, applies the interest rate to the total amount you have in your account — both your principal and any interest you’ve already earned. A savings account with compound interest works harder, earning interest on interest, and typically grows faster.

Here’s an example of compound interest in action: Let’s say you open a savings account with $10,000. You don’t make any more deposits or withdrawals, and the account earns 0.5% interest compounded every month.

After five years you’d have about $10,253. Here’s how your earnings break down year by year.

Year 1: $10,050.11

Year 2: $10,100.48

Year 3: $10,151.10

Year 4: $10,201.97

Year 5: $10,253.10

In this example, you’d earn 0.5% interest on your current principal and interest every month, boosting your total savings over time. Of course, adding more deposits or getting a higher interest rate would allow your money to grow even faster.

Unfortunately, brick-and-mortar banks may not offer the most competitive savings account interest rates. With many financial institutions offering low interest rates, consider looking for better rates elsewhere, like a high-yield savings account from an online bank.

How FDIC insurance protects a savings account

When you’re shopping for a savings account, you’ll want to know your deposits have protection from a worst-case scenario like the bank going out of business.

Backed by the U.S. government, FDIC deposit insurance — from the Federal Deposit Insurance Corporation — offers protection for your money if the bank fails. Bank failure isn’t likely, but the FDIC would pay for your insured balance up to a certain amount within a few days of the bank closing, if necessary. You can find out if your bank is FDIC-insured using the FDIC’s BankFind tool.

When you bank with FDIC-insured financial institutions, you don’t have to sign up for deposit insurance. You’ll receive automatic coverage for your savings account’s principal and accrued interest, up to $250,000 per ownership category in each FDIC-insured bank where you have an account.

But you won’t have FDIC deposit insurance for all types of products, even if they came from an FDIC-insured bank. Investments like stocks, bonds, mutual funds and annuities could lose value based on the market and won’t have FDIC deposit insurance.

Are savings accounts at credit unions FDIC insured?

The FDIC doesn’t insure deposits at credit unions. But the National Credit Union Administration, an independent federal agency that oversees credit unions, provides up to $250,000 of federal insurance to account holders at most credit unions.

How much it costs to have a savings account

It’s tricky to compare the cost of savings accounts. While most banks will require $25 to $100 to open and fund the account, there may be additional expenses you aren’t expecting.

You might have to pay a monthly maintenance fee if your savings account doesn’t meet specific rules, like keeping a minimum balance. Luckily, there are free savings account options, regardless of your balance.

Here are some other typical savings account expenses.

• Minimum balance fees — Your bank may charge a fee if your balance dips too low.
• Overdraft fees — Banks may charge fees for overdrawing your account. If you’ve linked your savings account to your checking account for overdraft protection, it’s possible you could overdraw your savings.
• ATM fees — If your bank doesn’t have physical branches, it could be costly to access money from other banks’ ATMs. Some banks are willing to reimburse you for ATM fees, though.

As you search for the best savings account, consider perks that some banks offer, like cash bonuses for banking with them. Before opening any account, make sure to read the fine print.

How to use your savings account

While there are clear benefits of opening a savings account — building an emergency fund, saving for your goals and earning interest, and keeping your money somewhere that offers more security than your piggy bank — you should also consider the disadvantages before signing up.

One is that, if you already have an emergency fund and still have money to save, your money might earn a higher return in other types of savings vehicles like a certificate of deposit.

You’ll also want to know about any savings account fees and how to avoid them. Otherwise, you could rack up fees that could slash your earnings.

Another drawback is the monthly withdrawal limit, which may be a hassle if you need more frequent access to the funds.

If the pros outweigh the cons, and you’re ready to open an account, you’ll usually need two forms of identification, like your driver’s license and a utility bill. You’ll also typically need at least $25 to $100 to fund the account.

To maximize your savings account and grow your balance, rely on the power of automation. You can’t spend money if you don’t have access to it. Try setting up recurring transfers from your checking account or paychecks into your savings account. With less money in your checking account, you may be less tempted to overspend. Before you know it, you’ll be one step closer to reaching your other savings goals.

What’s next?

You can find savings accounts through traditional banks, online banks, credit unions or fintech companies. While traditional banks and credit unions offer in-person service, you may find a higher annual percentage yield through online banks or fintech companies.

But before picking the account with the highest APY, there are other factors you’ll want to consider. Look for account restrictions, cash accessibility, hidden fees, minimum balances and deposit insurance. And you may also compare the company’s technology and customer service reputation. While it may be tough to find a savings account that checks the boxes, some research will bring you closer to the best possible fit.

A timeshare refinance isn’t easy, but if you’re willing to put in some research, finding a lower rate could make the work worth your time.

According to recent data from the American Resort Development Association, the average purchase price of a timeshare is $20,170, not including annual maintenance fees or property taxes. Your interest rate could range from 6% to 17% with typical timeshare financing, depending on your creditworthiness, says Jason Gamel, president and CEO of the ARDA.

While you may save money with a timeshare refinance, there are some things to consider before applying for another loan. Here’s what every timeshare owner should know.

• Can I refinance a timeshare?
• Where can I find timeshare refinancing?
• How does a timeshare refinance work?
• What are the pros and cons of a timeshare refinance?
• Alternatives to refinancing a timeshare

Can I refinance a timeshare?

When you buy a timeshare, you typically have the option to finance your purchase through the developer. While developer financing may be convenient, it may not be the cheapest option.

One distinction between a timeshare loan and a home mortgage is the term length. Gamel says the term for timeshare loans is generally seven years. With shorter terms than a home mortgage, you’ll generally see higher interest rates.

“The interest rates can range quite a bit,” Gamel says. Depending on your credit profile, you may see rates ranging from 6% to 17%.

If you’re struggling to afford high interest rates, try exploring loan options. You may be able to make your monthly payments more manageable by locking in low rates. Generally, the higher your credit scores, the more likely you are to qualify for low interest rates and more repayment flexibility.

Just keep in mind that if refinancing involves extending the length of your loan term, you may wind up paying more than you had planned over the life of the new loan.

Where can I find timeshare refinancing?

Timeshare refinance options could be a good idea if you’re eager to lower a double-digit annual percentage rate. Here are some possibilities to consider.

Unsecured personal loan

“Those looking to refinance through a third party may consider applying for an unsecured personal loan,” Gamel says.

Here are three online lenders that consider unsecured personal loans (which don’t require collateral) for timeshares.

• LightStream — LightStream offers competitive rates and no fees for borrowers with good credit.
• Best Egg — Best Egg offers the ability to prequalify with a soft credit check.​​​​
• Upstart — If your credit isn’t great, you may want to consider Upstart, a lender that considers more than your credit scores.

To qualify for an unsecured personal loan, lenders may review your credit scores, income and debt-to-income ratio. Generally, a few factors, including higher credit scores, higher income and less debt, make it easier to qualify for a timeshare refinance loan.

Unfortunately, not all lenders will approve an unsecured loan for a timeshare refinance. If you can’t find one that works for you, you’ll have to consider other options.

Home equity loan or home equity line of credit

If you don’t qualify for an unsecured personal loan, you may consider refinancing with a secured loan, which requires collateral. A couple of examples of secured loans include a home equity loan or home equity line of credit, or HELOC.

“It’s a popular way to refinance without refinancing,” Gamel explains.

He says timeshare owners typically own a primary home, with the ability to tap their home equity. You may score a lower interest rate than an unsecured loan by using your home as collateral. But refinancing with home equity is risky because you could lose your primary home and the timeshare if you can’t make the payments.

How does a timeshare refinance work?

When you refinance a loan, you apply for a new loan with a lower interest rate. Once approved, you can use the new loan to pay off your existing one. You may also benefit from smaller or fewer monthly payments.

There are differences between a mortgage and timeshare refinance, though. When you refinance your mortgage, you generally need an appraisal to determine your home’s fair market value. Your home’s value serves as collateral if you default on your payments, making it less risky for the bank. But some timeshares may not have the same market demand, and lenders may be less likely to refinance a timeshare loan.

What are the pros and cons of a timeshare refinance?

Before applying for a timeshare refinance, you may also want to consider some pros and cons.

Pros

• You may qualify for a lower rate, paying less in interest over the life of the loan.
• You may lower your monthly payments, making the timeshare more affordable.
• If you’re considering an exit, paying off your timeshare mortgage may provide more options.

Cons

• You could save more money over time by paying off the timeshare loan early.
• There may be origination fees for a new loan.
• Tapping your home equity to refinance could put your property at risk.

Alternatives to refinancing a timeshare

If you don’t qualify for a timeshare refinance or prefer to explore other options, consider one of these alternatives.

Pay off your timeshare loan early

Gamel says you can save on interest by paying off your timeshare loan early.

If you can make a lump sum payment without negatively affecting your other financial goals, this could be a good option. Just be mindful of potential prepayment penalties.

Try renting out your timeshare

If you’re too busy for trips and don’t plan to use your timeshare, you may offset some of your costs by renting the timeshare to other vacationers. Gamel says you can try to rent it yourself or work through your developer or homeowners association.

The Coalition for Responsible Exit, a program from the ARDA and its developers, suggests comparing each rental advertising package and fees before making your choice.

Work with your current lender

Gamel says another option to try is working with your timeshare developer. If your credit has improved since the original purchase, ask if it’s possible to lower your interest rate.

Plan your timeshare exit strategy

If you’re looking for ways to move on from your timeshare, you can start by contacting your timeshare company to learn about your options, like taking back your timeshare to resell. But owing money on your timeshare loan could affect the options from your timeshare company.

If the timeshare company isn’t willing to work with you, you may consider a third-party reseller. You can vet third parties by searching for complaints through the state Attorney General and local consumer protection agencies.

Next steps: Be proactive when buying a timeshare

While sales pitches can be tempting, Gamel says you need to fully understand your timeshare contract before signing the dotted line. You should watch for things like timeshare maintenance fees, property taxes, commissions, finance charges and closing costs.

You should also be comfortable with your timeshare loan interest rates, without planning to refinance later.

“You shouldn’t bank on your ability to refinance,” Gamel says. “Refinancing may or may not be available to you in the future.”

If you change your mind after the purchase, there may still be time to walk away. Gamel says you typically have a three- to 15-day recission period to cancel your timeshare purchase without paying a penalty.

Updated January 19, 2024

This date may not reflect recent changes in individual terms.

Editorial Note: Intuit Credit Karma receives compensation from third-party advertisers, but that doesn’t affect our editors’ opinions. Our third-party advertisers don’t review, approve or endorse our editorial content. Information about financial products not offered on Credit Karma is collected independently. Our content is accurate to the best of our knowledge when posted.

Written by: Kate Dore

Pros

• Potential to qualify with less-than-perfect credit
• Apply for prequalification without harming credit
• Smaller loan amounts available

Cons

• Often requires insured collateral
• Lack of transparency around rates and potentially high maximum APRs
• Not available in most states

What you need to know about a Regional Finance personal loan

Based in Greer, South Carolina, Regional Finance has more than 350 branches. The lender offers secured personal loans, which may make it easier to qualify with imperfect credit. Regional Finance considers your credit, income and the value of your collateral to determine your eligibility.

Depending on where you live, loan amounts range between $500 and $12,000. And if approved, you can use the money for emergency expenses, debt consolidation, home repairs, weddings and more. (Keep in mind that if you apply through Credit Karma, your loan amount and terms may differ.)

APRs are difficult to pin down, but potentially high

It can be hard to tell what sort of rate you’ll get from Regional Finance.

The lender has some limited rate information on its website — including some for select states on its Licenses and Disclosures page — indicating a range of APRs from the lower-mid double digits up to nearly triple digits. But you’ll need to really dig for this info.

Regional Finance says your interest rate, if disclosed, will be in your loan contract.

The company does give you the option to apply for prequalification without affecting your credit scores, which could help you estimate your potential rate. But keep in mind that your rate and terms could still change after you officially apply — and you may face a hard credit inquiry, which can lower your scores.

Often requires insured collateral

Regional Finance offers secured loans, which require collateral. You may use personal property, such as a TV, stereo or your vehicle, to secure the loan, and it must have insurance protection. With a secured loan, the lender has the right to take your collateral if you don’t repay the loan as agreed.

Not available in most states

To apply for a Regional Finance personal loan, you must live in one of the states where it operates.

A closer look at a Regional Finance personal loan   

Here are some more things to know before applying with Regional Finance.

• Funding within a few days — If you prequalify, you can contact a local branch, or someone will contact you within 24 to 48 hours to complete the application process. You may be able to receive your funding as soon as the same day that you close at the branch, but the exact timing may depend on your bank.
• May need to finalize in person — You may have to visit a local branch to close and receive your check, but some customers may be eligible for a remote closing. 
• Flexible payment options — You can pay online, by phone, by mail or in person at your local branch.
• Boost credit scores with on-time payments — Regional Finance reports your activity to two major credit bureaus (Equifax and TransUnion) every month, which can improve your credit scores if you make your loan payments on time as agreed.
• Possible fees — Regional Finance doesn’t charge an application fee or prepayment penalty, but there could be an origination fee, depending on where you live. You may also need to watch for late fees.

Who is a Regional Finance loan good for?

People with less-than-perfect credit, or who need to borrow a smaller amount, may find a Regional Finance secured personal loan an option worth considering. But using collateral to secure a loan, especially a vehicle, may not be worth it. If you’re unable to make loan payments, the lender could seize your car or truck.

And the lender’s lack of transparency around interest rates and APR may make it difficult to know whether you’ll get a competitive rate from Regional Finance until after you apply.

It’s always a good idea to shop around and compare offers when possible.

How to apply with Regional Finance

Regional Finance personal loans are available in limited states. You can apply for prequalification online in a few minutes with a soft inquiry that won’t hurt your credit scores. If you prequalify, you can call a local branch to complete the loan application process in person, or the lender will contact you within a couple of days.

At a minimum, Regional Finance will need the following documents to finalize your loan:

• Government-issued photo ID (driver’s license or passport)
• Proof of residence (utility bill or signed lease)
• Proof of income (pay stubs or tax return)

You’ll close in person at a local branch, or if you’re eligible to close remotely, Regional Finance will send a check after your closing.

Not sure if Regional Finance is right for you? Consider these alternatives.

If a potentially high APR is a deal breaker for you, here are a couple of lenders to consider that are more transparent with their rates and fees.

• Avant: Avant may be a good choice if fast funding is important to you.
• OneMain Financial: If you want another secured personal loan option, OneMain Financial may be worth a look.

Pros

• No interest on purchases
• No hard credit check
• Simple, transparent payment plan

Cons

• Fees for failed or rescheduled payments
• Lower limits for first-time shoppers
• Must contact merchant for refunds

What you need to know about a Sezzle loan

Sezzle is a buy-now, pay-later financing option for online purchases. When you have a Sezzle account and shop online at a participating merchant, you’ll have the option to choose a Sezzle loan as your payment method. You can shop through Sezzle’s app or website, or through the merchant’s online storefront.

With a mission to “empower the next generation,” the company says most of its customers are Generation Z and Millennials. Sezzle offers interest-free loans with the ability to opt in to a credit-building feature. The company operates in the U.S. and Canada.

Here are some other features to consider before you take out a Sezzle loan.

Interest-free loans

Sezzle offers buy-now, pay-later interest-free loans. If you can’t afford to pay full price upfront, the alternative payment platform offers a four-installment payment plan, payable over six weeks. The first installment is a down payment that’s usually 25% of your order total.

Sezzle does allow you to use a credit card to make payments. So keep in mind that even if you make your interest-free Sezzle payments on time, if you don’t pay off your credit card balance in full, you could still face interest charges on your purchases.

Apply without affecting your credit

Sezzle allows you to apply for a loan with a soft credit check that doesn’t hurt your credit scores, and the app offers instant approval — but you may not qualify for every purchase. Your eligibility depends on your Sezzle history, past orders and more.

If you’d like Sezzle to report your payment history to the credit bureaus, you may join Sezzle Up to opt into reporting. Developing a history of on-time payments could help you build a strong credit profile.

Possible fees for failed and rescheduled payments

If your payment fails, Sezzle allows you 48 hours to correct it. If you miss the deadline, the company charges $10. Sezzle allows you to reschedule one repayment for free. After that, you’ll have to pay $5 each additional time you have to reschedule that payment.

Smaller limits for new customers

You may have a smaller limit — typically $50 to $200 — for your first purchase. Sezzle may increase your limit over time as you build a history of on-time payments for smaller orders.

Tricky refund and dispute process

Unfortunately, you’ll have to contact the merchant directly for any canceled orders, returns or exchanges. If you don’t receive an order, you can log into your account and click “Get Help” to email Sezzle’s team. If you encounter a situation that Sezzle considers a disputable issue, you can ask it to open a dispute with the merchant.  You should get a response within three business days advising you of next steps.

But Sezzle’s website doesn’t promise it’ll help, and it isn’t clear about what Sezzle will do for you if it opens a dispute on your behalf.

A closer look at a Sezzle personal loan

Here are some more things to know about Sezzle loans before you apply.

• Available for 24,000+ online merchants — You can use Sezzle for online purchases at thousands of stores, such as K9 Ballistics, Melt Cosmetics and Dude Perfect.
• Restrictions after failed payments — After a failed payment, Sezzle restricts you from placing any new orders.
• Limited customer service — Sezzle suggests contacting support with complaints via an email form. If you prefer phone calls, it’s worth noting that it’s not easy to get a live person on the line. You can find the customer service phone number on the Sezzle Legal Definitions page.

Who is a Sezzle loan good for?

Sezzle may be a good option for smaller online purchases if you can afford a 25% down payment and can pay off the balance within six weeks as scheduled. You won’t pay interest and can avoid fees with three on-time payments, which could be cheaper than the average rate you’d pay if you use a credit card.

But if you can’t pay off your balance within six weeks, or use a credit card to pay off your Sezzle balance, you may want to explore options with a longer payoff timeline, like a 0% APR credit card offer.

Sezzle may also be a good choice if you want to finance a purchase without a hard credit check. And you can join Sezzle Up if you’re working on your credit scores and want to have your activity reported to the credit bureaus. But if you don’t want to link your bank account and provide your Social Security number, you can’t use Sezzle Up.

How to apply with Sezzle

If you’re at least 18 years old, have a U.S. or Canadian mobile number that can receive texts, and a working email address, you may be eligible for Sezzle financing. You’ll also need an active bank account, debit card or credit card.

You can start using Sezzle by signing up for an online account. The company asks for your first name, last name, mobile number, email address, date of birth and a PIN. You’ll also have to agree to Sezzle’s user agreement and allow the company to conduct a soft inquiry on your credit.

After receiving security codes to confirm your phone number and providing your billing address, your profile will be active. To start shopping, you’ll need to verify your Sezzle account via email. You can complete the purchase process through 24,000 stores and choose Sezzle for payment at checkout. If you want to pay off your Sezzle app purchase sooner, there isn’t a prepayment penalty and you won’t pay a fee to move a payment date earlier.

You can see and increase your credit limit by joining Sezzle Up, which reports your payment history to the credit bureaus. To join Sezzle Up, you’ll need to link a bank account, pay off one order on time and provide your Social Security number.

You can use the Sezzle app to manage your account. The app features allow you to browse online stores, review orders, reschedule payments, change payment methods and receive payment notifications.

Not sure if Sezzle is right for you? Consider these alternatives.

If you’re not sure about Sezzle, here are a couple of alternatives to consider.

• Affirm: Affirm may be a good pick if you need a loan with up to 12 months to pay off your retail purchase.
• Afterpay: If you want the flexibility to shop in person, Afterpay could be a convenient choice.

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.

Whether you’re in high school, college or vocational school, a student checking account could be the beginning of a long-term banking relationship.

Student checking accounts are personal checking accounts that offer features intended to appeal to students. These accounts may have fewer fees or other beginner-friendly features.

When you search for the term “student checking accounts,” you may see results for many bank websites, and it can be confusing. Let’s explore the basics of a student checking account, and what you should look for when comparing accounts to decide which one is best for you.

• What is a student checking account?
• Why does a student checking account matter?
• What should I look for in a student checking account?
• How can I open a student checking account?

What is a student checking account?

Student checking accounts are bank spending accounts specifically marketed for students. These accounts may be beginner-friendly for those with less banking experience. Here are some ways a student checking account may differ from a regular checking account.

• Age restrictions — Unlike regular checking accounts, student checking accounts may have age limits.
• Must be a student — You may need to show proof of high school, college or vocational school enrollment to qualify for a student checking account.
• Account minimums — While some regular checking accounts have account minimums, student accounts may waive these requirements or offer lower minimums.
• Monthly maintenance fees — Some banks charge a monthly maintenance fee to keep the account active. But many banks allow you to avoid  maintenance fees with a student checking account. 
• ATM fees — There are typically ways to avoid ATM fees with a student checking account. You may have access to a large network of ATMs or reimbursements for ATM fees. 
• Overdraft fees — Student checking accounts may have no overdraft fees or offer overdraft protection by linking another bank account.

Why does a student checking account matter?

As you begin a new semester or school year, a student checking account may not be your top priority. But having one may be a good idea for many reasons. In fact, the Consumer Financial Protection Bureau recommends that students choose a bank account as soon as possible before starting school.

If you’re heading to college, you may rely on your school’s financial aid disbursement to help with tuition, housing costs and books. You generally have multiple options for how you’ll receive financial aid funds, including a paper check, cash a debit card through another bank, or direct deposit.

To expedite the process, you can open a student checking account and set up direct deposit with your school before the semester begins. By setting up direct deposit in advance, you may receive money weeks before the school would send a paper check. Plus, by having funds deposited into an account you chose after comparison shopping for the best offers, you may be able to avoid bank fees that can be associated with a disbursement account. 

A bank account may also be convenient if you want to use online banking for recurring bills like your cellphone. You may also have the option of making peer-to-peer payments, which allow you to transfer money to friends or family without the hassle of writing a check or carrying cash. 

What should I look for in a student checking account?

While a student checking account may be ideal for a beginner, you’ll still need to ask questions and read the fine print to avoid potential pitfalls before you open a bank account. After doing some initial research to find student checking account options, evaluate each account based on these factors (there may be others to consider, too).

• How to qualify — You’ll need to ask about eligibility for each student checking account, including age restrictions and proof of enrollment requirements. Some accounts may only be for college students while others may also be available for high school students.    
• Balance requirements — See if the student checking account has minimum balance requirements to avoid fees. It’s common for student checking accounts to waive minimum balance requirements.
• Maintenance fees — Ask if the bank charges monthly service fees. If so, the bank may waive the fees for student checking accounts if the account holder meets certain criteria.
• ATM fees — Find out how much it costs to use ATMs. If the bank doesn’t have a network of in-person ATMs, it may reimburse you for fees you’ll likely incur when using a non-network ATM. But keep in mind, the bank may also cap the amount it will reimburse.
• Overdraft fees — Fees for overdrawing your account can be high. Some student accounts may not charge overdraft fees but will decline transactions if you don’t have enough money in your account — which could result in a nonsufficient funds fee. Others may waive a fee on the first overdrawn item. And some may offer overdraft protection, which generally covers a transaction by drawing money from a savings account if you don’t have enough in your checking.
• Other fees — You should always review the bank’s agreement and disclosures to see a complete list of service fees. Some examples of lesser-known fees may include a per-check fee, check printing fee, returned deposit fee, stop payment fee and more.
• Mobile banking and online bill pay — Learn about the bank’s mobile app and options for managing transactions online.

How can I open a student checking account?

Depending on the bank and your age, you may have the option to apply for a student checking account online or in-person. The bank will need to verify your identity to open the account. The process may include confirming your name, date of birth, address and Social Security number. To be eligible for a student checking account, the bank may need proof of your enrollment status through your student ID or acceptance letter.

Next steps

If you’ve never had a bank account before, one option for finding a student account is to check with the bank where your parents have accounts. You can also find student account options with an online search.

When you’re looking for a student checking account, there are plenty of choices, but the best options may have minimal or even no fees. Some fees to watch for include ATM withdrawal fees, monthly maintenance fees and overdraft charges.

While it’s usually possible to sign over a check you’ve received to someone else, it may not always be your best option for paying someone when you owe them money.

Not all banks will allow you to sign a check over to someone else. And banks that permit it will have specific rules you’ll have to follow. Before you decide to sign a check over to someone else, here’s what you need to know about the process.

• Can I sign a check over to someone else?
• How do I sign a check over to someone else?
• What problems might I encounter in signing over a check?
• Beware of check-cashing scams
• Alternatives to signing over a check to someone else

Can I sign a check over to someone else?

Several factors may affect your ability to sign a check over to someone else. The biggest one could be your recipient’s bank and whether it’ll accept the check you signed over, which is sometimes called a “third-party check” or “third-party endorsement.” You may also face restrictions based on the type of check you want to sign over, like state or federal checks. For example, you probably wouldn’t be able to sign over tax refund checks.

When might I want to sign over a check?

There are a few reasons why you may want to sign a check over to someone else. You may not live close enough to a bank branch or be physically able to visit your bank in person. It’s also possible you don’t have a smartphone or your bank doesn’t currently offer mobile deposits.

And signing a check over to someone else could be a convenient time-saver. If you owe money to an individual or company, it might seem easier to bypass your bank account and pay them sooner.

How do I sign a check over to someone else?

You may be eager to sign a check over and move on, but there are five vital steps to follow. Here’s how to sign a check over to someone the right way to avoid potential hiccups.

1. Check that your recipient can accept the check

It may seem obvious, but the first step is a candid talk with your recipient. You should make sure they are willing and able to accept your check before you attempt to sign it over.

2. Confirm your recipient’s bank can deposit a signed-over check

The second step is critical. You need to make sure your recipient’s bank will accept a signed-over check. Depending on the institution, there may be specific endorsement rules to follow. The easiest way to find out this information may be for your recipient to call their bank and ask.

3. Sign your name on the back of the check

Look for the endorsement line on the back of the check and sign your name as it appears on the front of the check on the “pay to” line.

4. Write “pay to the order of” with your recipient’s name or company

To sign a check over, you need to write “pay to the order of” and your third party’s full name on the next line below your endorsement on the back of the check. The exact location may vary by bank.

5. Give your recipient the check

After following the steps above, you may deliver the check to your recipient, and they should try to deposit or cash the check.

What problems might I encounter in signing over a check?

As you begin the process of signing over a check, watch for potential roadblocks. One of the most significant issues could start with your recipient’s bank or credit union. Not all institutions will accept a signed-over check, and those that do may have specific guidelines.

And some banks won’t allow you to deposit a signed-over check via mobile check deposit, so you should make sure your recipient has easy access to a brick-and-mortar branch.

Beware of check-cashing scams

Unfortunately, check-cashing scams have become more prevalent, so it pays to be wary if someone asks you to deposit or cash a third-party check on their behalf. After you make the deposit, the scammer may ask you to send the money back to them, or someone else, before your bank realizes it’s a fraudulent check.

The scammer may ask for the money back in cash or as a personal check, prepaid card, ACH transfer, person-to-person transfer or wire transfer. According to the Federal Deposit Insurance Company, or FDIC, three of the most common scam scenarios are lotteries, online auctions, and secret or mystery shopping opportunities.

Here’s the problem: Once the check bounces, you’ll likely be responsible for repaying the bank the money you withdrew to give to the scammer. If this happens, you should report the incident to the Federal Trade Commission, U.S. Postal Inspection Service, local protection agencies, or the Internet Crime Complaint Center.

Be wary of any check you receive from a stranger, especially if they ask you to accept a third-party endorsement and return some (or all) of the funds.

Alternatives to signing over a check to someone else

While signing a check over to someone may be possible, it’s not the only option — and may not be the ideal solution for your needs.

If you have an account in good standing with a bank or credit union, you may deposit the check in person, at an ATM or through a mobile banking app. There may be different timelines for how quickly you can access the funds, but there’ll be numerous ways to transfer the money to your recipient once the funds appear in your available balance. These alternative solutions may include ATM withdrawals, personal checks, ACH or wire transfers, or peer-to-peer apps. Before picking an option to transfer money, always check possible fees.

Unfortunately, most banks won’t cash checks for folks without an account, and those that allow it may charge a fee to protect the institution from forgeries. You may also be able to cash your check in person through some retail stores like Walmart, Kmart or Kroger for a fee. Some states limit the fees a check-cashing store or other non-bank may charge to cash a check.

Once you have access to the funds, another option is to pay someone with a prepaid card, which will disclose the total fees upfront. If you buy a prepaid card in person, you can see a summary of the fees on the packaging.

Whether you need to pay someone quickly or move money between accounts you own at different banks, there are many reasons you might want to transfer money from bank to bank.

While online transfers and banking apps may be convenient, there are other ways to move money between banks, with varying advantages and downsides. We’ll cover the options for how to transfer money from bank to bank, whether you need to make a one-time money transfer or set up ongoing payments.

• How to transfer money from one bank to another
• What information will I need to transfer money?
• How long will it take to transfer money from one bank to another?
• How can I transfer money to someone else’s account?
• Other things to consider when you transfer money

How to transfer money from one bank to another

There are a few ways to transfer money between banks and credit unions. One option is by an electronic transfer, known as an ACH transfer because it goes through the Automated Clearing House system. Some common types of ACH transfers are direct deposits for your paychecks, and direct debits for mortgage payments, car loans and other recurring bills.

Moving money from bank to bank through an ACH transfer typically takes a few steps.

1. Link the two bank accounts. You’ll need to log in to one account, navigate to the section for managing external transfers and follow the instructions. Also, you’ll need to add the other account’s routing and account numbers. If you’re transferring money to someone else’s account, they’ll have to share this information with you.

2. Verify the external banking details. Your bank may need to verify these details through a test with a couple of small deposits or withdrawals.

3. Schedule a transfer. Once the verification is complete, you may start transferring money.

Your bank may allow you to complete ACH transfers through an online dashboard or on the go with your bank’s app.

Other ways to set up a bank transfer

While ACH transfers are common, there are some other options for transferring money from bank to bank. 

• Wire transfer — You may send a wire transfer, which is another type of electronic payment.  
• Peer-to-peer, or P2P, payments — You may also use peer-to-peer payments for a faster way to transfer money from bank to bank.

What information will I need to transfer money?

As you begin the money transfer process, you’ll need to gather some bank account details. Although the exact process may vary by institution, here’s the information you’ll likely need to transfer money from bank to bank.

• Type of account — You’ll need to identify the type of account you’re transferring money to, which may be an eligible checking, savings or another type of account.
• Bank name — You may also have to provide the bank name.
• Routing number — A routing number or ABA routing number is nine digits and identifies the correct bank branch. You can find a bank’s routing number on its website.     
• Bank account number — A bank account number is account-specific. You may find your bank account number on paper statements, on the bottom of your checks or on your deposit slips. You may also find this information by logging into your online account or by calling your bank. 

How long will it take to transfer money from one bank to another?

How you send the money is one of the main factors in how quickly a bank-to-bank transfer will go through. ACH transfers may involve added precautions against fraud and money laundering. The extra layer of security could make an ACH transfer take longer — up to several business days longer in some cases.

But if both bank accounts connect through Zelle, a peer-to-peer app, it may be possible to transfer money for free within minutes. Other peer-to-peer apps like Venmo, Cash App or a PayPal account may also offer instant transfers — some for a fee.   

How can I transfer money to someone else’s account?

There are scenarios where you may need to transfer money to someone else’s bank account. For example, you may need to chip in for a group vacation home or dinner. Or perhaps you’ve offered to lend money to a family member.

You may transfer money instantly through a peer-to-peer mobile app like the Zelle app or Venmo. For those who don’t need the money instantly, you may send the money through an ACH transfer or wire transfer, but you’ll need access to the recipient’s bank account information. There’s also the option of using a paper check or cash.       

Other things to consider when you transfer money

Whether you’re planning a one-time transfer or a series of payments, there are some additional things you’ll want to consider.

Money transfer limits

As you plan to transfer money from bank to bank, you should consider your bank’s daily, weekly and monthly transfer limits. You may find these limits in your account disclosures or by calling the bank’s customer service team. If you need to transfer larger amounts of money, you may need to split the transfer amount across multiple days.   

Protect yourself from cyber attacks

In the era of more online security threats, it’s critical to safeguard your online and mobile banking. The Federal Emergency Management Agency suggests taking these steps to protect your bank accounts from cyber attacks.

• Back up your files.
• Consider using a virtual private network, or VPN, when online banking.
• Protect your home Wi-Fi network.
• Use a strong password and two-factor authentication.
• Update software and your operating systems regularly.

Watch for money transfer scams

You should also watch for suspicious activity, like money transfer scams, which may involve scammers trying to move stolen money. The Federal Trade Commission says these scams may occur through work-from-home jobs, online dating accounts or prizes. If you receive a suspicious request to transfer funds, notify the companies involved and report the incident at ftc.gov/complaint.

This article was fact-checked by our editors and Tolla Tu, tax specialist with Credit Karma. It has been updated for the 2020 tax year.

The tax code has specific rules about who needs to file a federal income tax return. If you didn’t earn a lot of money, you may be below the minimum income to file taxes.

While you’re generally not required to file a federal income tax return if you earn less than the filing threshold, it could still be in your benefit to file. For example, if your employer withheld federal income tax from your wages, filing a return is the only way to get that money back. And you may be eligible for refundable tax credits — like the earned income tax credit — but you have to file a return to claim them.

Let’s look at some things to consider before you decide to skip the filing process.

• What is the minimum income to file taxes?
• What are other reasons you may be required to file? 
• Reasons to file (even when you’re not required to) 

What is the minimum income to file taxes?

If your gross income for a tax year is low enough, you don’t have to file a federal income tax return. But the exact threshold depends on a few factors.

• Your filing status — For example, the threshold for single filers is much lower than for married couples filing jointly.
• Age — Filing thresholds are generally higher for people 65 and older across all filing statuses.
• Dependency status — Children and other dependents have different filing thresholds that are also based on the type of income they have (earned or unearned).
• Employment status — If you’re self-employed, other rules may apply.

Here are the basic filing requirement thresholds for 2020 taxes.

Source: IRS Form 1040 Instructions (2020)

Typically, the income thresholds match the standard deduction amounts for each filing status, with the exception of married filing separately.

Because the IRS generally adjusts standard deduction amounts for inflation each year, you can also expect filing thresholds to change from year to year. Standard deduction amounts have increased for 2021 — so when it’s time to file your 2021 taxes in 2022, the filing thresholds will likely be different then, too. Here are the standard deduction amounts for 2021.  

• Single: $12,550
• Married filing jointly: $25,100
• Married filing separately: $12,550
• Head of household: $18,800
• Qualifying widow(er): $25,100

The rules for adults and dependent children

The rules change when someone can claim you on their tax return. In this scenario, you may have to file a federal tax return even if your income is lower than shown in the chart above. The thresholds look different because the IRS separates your gross income into two categories — earned income and unearned income.

Earned income is the money you make by working for someone else or running your own business. Your unearned income includes investment income — like interest, dividends or capital gains. It may also include canceled debt, taxable Social Security benefits, pensions and more.

The rules for when a dependent must file can be confusing, so be sure to read the threshold rules carefully. They’re generally included in the instructions for each year’s Form 1040. You can also learn more in IRS Publication 501.

What are other reasons you may be required to file?

There may be other situations in which you’re required to file. The IRS specifically calls these out in the 1040 instructions.

• Special taxes — If you’ll owe the alternative minimum tax, tax on a retirement plan, household employment taxes, Social Security or Medicare taxes on income you didn’t report, write-in taxes (like uncollected Social Security or Medicare), or you have to repay a tax credit you received in a previous year (called recapture taxes)
• You (or your spouse if you’re married filing jointly) received distributions from a health savings account, Archer MSA or Medicare Advantage MSA
• You’re self-employed and had net earnings from self-employment of $400 or more
• A church or qualified church-controlled organization paid you wages of $108.28 or more
• You, your spouse or a dependent were enrolled in a marketplace insurance plan and you received advance payments of the tax credit intended to help pay your premiums 
• You, your spouse or a dependent received an advance payment of the health coverage tax credit
• Income under section 965, which deals with foreign income

Reasons to file (even when you’re not required to)

Even when you’re not required to file a federal income tax return, there might be reasons to file anyway.

The first is a federal tax refund. You may be eligible for a federal tax refund if any of these situations apply.

• Your employer withheld federal taxes from your paychecks
• You made quarterly estimated tax payments
• You overpaid on last year’s tax liability  

The only way to get a refund is to file a return.

You may also qualify for tax credits that you can only get if you file a return. If you don’t file a federal tax return, you can’t claim the earned income tax credit, child tax credit, credit for other dependents or credits for education. Some of these are refundable tax credits, which means they still offer a refund even when the credit amount is more than the total taxes you owe. 

Bottom line

Not everyone is required to file a federal income tax return. In fact, you usually don’t have to file if you’re below the income threshold. But if you overpaid your federal income taxes, or qualify for federal tax credits, it may be worth filing to get any refund you may be owed.

If you’re feeling confused by the rules, the IRS offers a couple of handy resources. You can plug your details into its Interactive Tax Assistant or learn more in the 1040 and 1040-SR instructions. For additional guidance, don’t be afraid to speak with a tax professional.

Relevant sources: IRS: Here are reasons for people to file a 2019 tax return | 1040 and 1040-SR Instructions for 2019 Tax Year | IRS News Release: IRS provides tax inflation adjustments for tax year 2020 | IRS: What is Earned Income? | IRS: Unearned Income | Cornell Law School Legal Information Institute: U.S Code, Internal Revenue Code | IRS: Credits and Deductions for Individuals | IRS: Do I Need to File a Tax Return? 

A tax specialist with Credit Karma, Tolla Tu has international experience in accounting, tax, finance, banking and consulting. She holds a bachelor’s degree in financial management from Beijing University of Chemical Technology, a master’s in corporate finance from Central University of Finance and Economics as well as a Master of Professional Accountancy from Montana State University. You can find her on LinkedIn.

Massachusetts has seen a surge in unemployment claims amid the coronavirus outbreak.

Massachusetts’ employment rate has taken a major hit from COVID-19, with the commonwealth’s private sector shedding more than 18,000 jobs in the first month. Luckily, the state moved quickly to adopt new measures for those affected by the pandemic. The governor waived the state’s one-week mandatory waiting period for unemployment benefits, allowing residents to get faster relief.

Here’s some info about filing for unemployment insurance benefits in Massachusetts.

• How does unemployment work in Massachusetts?
• How can I qualify for Massachusetts unemployment benefits?
• How much might I get?
• How can I apply?
• How will I receive my payments?
• When do my benefits end?
• What if my claim is rejected?

How do unemployment benefits work in Massachusetts?

The Department of Unemployment Assistance, or DUA, oversees Massachusetts’ unemployment insurance benefits program. You can apply for unemployment benefits online or by phone. In-person services at the agency’s Career Centers across the state aren’t currently available.

Typically, the maximum amount of time you may receive full unemployment benefits in Massachusetts is 30 weeks. However, in times of economic crisis, states may choose to revise their benefits — and the federal government may help fund extended state benefits during such times.

How can I qualify for Massachusetts unemployment benefits?

To qualify for unemployment insurance, you need to meet both federal and state-level requirements. If you’re unemployed, the federal rules say it must be through “no fault of your own.” The federal rules also say you must meet Massachusetts’ wage and work requirements, which include the following:

• You’ve earned at least $5,100 during the past four consecutive quarters.
• Your earnings are 30 times the weekly benefit you expect to collect (the weekly benefit you might expect to collect is explained in the next section).
• You’re legally allowed to work in the United States.
• You’re out of work or had your hours significantly reduced through no fault of your own.
• You’re willing to work again once you find a suitable job.

Massachusetts also has weekly eligibility requirements. Every week, you must be actively looking for work and available and physically able to work.

You also may have to complete mandatory seminars through one of the DUA’s Career Centers to stay eligible for unemployment benefits.

How much might I get?

Your weekly benefit amount will be about half of the average weekly amount you made during a designated time frame — called a base period — up to a maximum of $823 per week. The primary base period that the state typically uses to decide weekly payments for most people is the four quarters before you file a claim.

For example, let’s say you earned the following amounts for the past four quarters:

• Quarter 1: $7,800
• Quarter 2: $7,800
• Quarter 3: $8,840
• Quarter 4: $10,000

The state allows you to take a weekly average from your top two quarters. To figure out your benefit, add the two quarters with the highest earnings and divide the total by 26 weeks.

1. Add the two quarters with the highest earnings.

$8,840 (Quarter 3) + $10,000 (Quarter 4) = $18,840

2. Divide the total by 26 weeks.

$18,840 / 26 weeks = $724.61 average weekly wage

3. Divide the result by 2 to get your weekly benefit amount.

$724.61 / 2 = $362 weekly benefit

Again, during recessions or other difficult economic times, it’s possible these maximums can change.

Are unemployment benefits taxable?

Unemployment benefits are generally taxable, and you’ll be responsible for paying any state or federal income tax due on your Massachusetts unemployment compensation. You can ask the Department of Unemployment Assistance to withhold taxes from your weekly benefits.

How can I apply?

There are currently two ways to apply for unemployment benefits in Massachusetts — online and by phone.

You can apply by phone by calling either 1-877-626-6800 (from area codes 351, 413, 508, 774 and 978) or 1-617-626-6800 (for all other area codes). Customer service by phone is available from Monday through Friday from 8:30 a.m. to 4:30 p.m. Eastern time, but you can only call on certain days based on your Social Security number. If your SSN ends in 0 or 1, call on Monday; 2 or 3, call on Tuesday; 4, 5 or 6, call on Wednesday; and 7, 8 or 9, call on Thursday. Anyone can call on Friday.

You can apply online through the DUA’s online portal.

Whether you apply online or by phone, you need the following information:

• Address
• Birthdate
• Email address (optional)
• Phone number
• Social Security number

You will also need to provide the following employment information for the 15 months before your claim:

• Name(s), addresses and phone numbers of all employers you worked for
• Employment start and end dates for each employer
• Reason(s) for leaving each employer
• Recall dates (if you are returning)

How will I receive my payments?

You must request benefits every week you are unemployed and start looking for work immediately. The DUA should process your initial claim within 21 to 28 days after filing. But it may take longer if there’s an issue with your claim, according to its website.

After reviewing your application and confirming details with your former employer, the DUA will send you a “monetary determination,” which tells you how much you’ll receive in unemployment benefits. Next, you’ll be asked to complete a questionnaire, and you’ll find out if you’ve been approved.

Your first payment will always be a paper check. You may receive subsequent payments by debit card or direct deposit to your checking or savings account, depending on which method you chose when you first applied for benefits.

Direct deposit

When you set up direct deposit, your benefits won’t be paid out until your bank verifies your account, which takes nine business days, according to the DUA. You’ll need to continue requesting benefits and certifying your eligibility every week while waiting for payment, either by phone or online.

Debit card

If you don’t choose direct deposit, you’ll receive your payments on a DUA Debit Mastercard issued by Bank of America. There’s no fee to use the debit card for purchases or to withdraw cash from Bank of America or Allpoint ATMs (though there may be fees for using other ATMs).

When do my benefits end?

Unless they’re extended because of some sort of economic crisis, you may receive unemployment benefits for up to 30 weeks — though many people will reach their maximum benefit amount before those 30 weeks are up. In a typical situation, you can calculate the length of benefits by dividing these two numbers:

1. Your maximum benefit credit — The lesser of 30 times your weekly benefit amount or 36% of your total wages during your base period
2. Your weekly benefit amount — Average weekly benefit of your top two quarters

Let’s return to our original example, where we calculated the weekly benefit out to $362. Here’s how to calculate your maximum benefit credit. First, we’ll calculate the lesser of 30 times your weekly benefit amount or 36% of your total wages during your base period.

30 times weekly benefit

30 x $362 = $10,869

36% of total wages

$7,800 + $7,800 + $8,840 + 10,000 = $34,400

$34,400 x .36 = $12,384

In this example, you would choose the first option because it’s the smaller amount. Now you can divide your maximum benefit credit ($10,869) by your weekly benefit ($362).

$10,869 maximum benefit credit / $362 = 30 weeks

What if my claim is rejected?

After responding to the DUA’s questionnaire, you’ll receive a “non-monetary determination,” which includes the acceptance or rejection of unemployment benefits. If your application is rejected, you have 10 calendar days to file an appeal through this form. After the DUA receives your appeal, you’ll have the opportunity for a hearing. You’ll receive a written decision from the review examiner within two to four weeks of the hearing.

Bottom line

Massachusetts’ unemployment insurance program may offer relief as you are navigating the financial impact of the coronavirus pandemic. But before applying, take some time to understand how much you may receive — and how long the unemployment benefits may last.

A savings account can be a good option if you’re looking for a place to keep — and grow — your money.

But how do you find a savings account that fits your needs? Whether you’re opening your first savings account or thinking about switching banks, there are some things you should be aware of, including interest rates, security, fees and more.

We’ll go over your options for where to open a savings account — and things to know before signing up.

Where can I open a savings account?

You can find most savings accounts through traditional banks, credit unions, online banks and fintech companies. Here’s a breakdown of what you can expect from each option.

Traditional banks

When you’re ready to open a savings account, your first instinct may be to try a local bank or a bank where you already have a checking account.

• Benefits — If you prefer in-person customer service or visiting a branch, you may want to pick a brick-and-mortar bank.
• Downsides — Many traditional banks offer a low annual percentage yield, or APY, on your savings. You may see savings accounts offering interest rates as low as 0.01%. But it’s easy to find high-yield savings accounts instead. Just keep in mind that some banks might charge a fee if you don’t maintain a certain minimum balance.

Credit unions

Credit unions are nonprofit, member-owned organizations. Like banks, you can probably find one with a branch that’s located somewhere that’s convenient to you.

• Benefits — Credit unions may pass along profits to members, sometimes through higher savings account rates. You may also get more personalized customer service.
• Downsides — To join a credit union, you usually need to meet specific eligibility criteria, such as working for a specific employer or living in a certain area.

Online banks or fintech companies

Once you start looking for a savings account, you may notice a number of fintech companies offering high-yield savings accounts. There are also online banks that offer high-yield savings accounts, too.

• Benefits — These companies may offer higher interest rates on savings accounts than banks or credit unions. If you like banking online, you may also benefit from lower fees.
• Downsides — Not everyone feels comfortable banking without a branch nearby. Plus, some online banks or fintech companies may not offer some products — such as checking accounts and auto loans — you can find at banks or credit unions.

What to look for before opening a savings account

As you start comparing savings accounts, it’s easy to focus solely on interest rates. And while a savings account’s APY offering may be a selling point, you should review the company’s fine print for other account details too.

• Account restrictions — Before getting too excited about a new account, you’ll want to make sure you qualify. Some financial institutions, such as credit unions, may have eligibility requirements for membership. 
• Annual percentage yield — This is the rate of return you earn on the money you have in a deposit account. You’ll also want to think about compound interest — which is when you earn interest on your principle amount plus any interest you’ve already accrued.
• Access to cash — If you’re considering an online bank without physical locations, make sure you know how to access your money. You may be able to link your savings account to a debit card, and some credit unions or online banks may reimburse you for ATM fees.
• Added benefits — Some companies offer sign-up bonuses or extra perks for banking with them. But before signing up, you’ll want to be clear on the complete rules and regulations. 
• Minimum account balances — You’ll want to watch for minimum account balance fees. Some banks may charge you a monthly fee if you don’t keep a certain amount in your bank account. You may also need to meet a minimum balance requirement to earn a higher APY.
• Security — Feeling nervous about depositing your money? Make sure your funds are FDIC insured (or insured by the NCUA if it’s a credit union).

What’s next?

Opening a savings account can help you achieve your financial goals, whether it’s creating an emergency fund or padding your nest egg. Even putting aside small amounts of money on a regular basis can make a big difference.

If you’re trying to save more, there are a few other options to explore.

• Consider enrolling in automated deposits through your bank or employer.
• Explore getting a money market account or certificate of deposit.
• Contribute money for retirement to your employer-sponsored 401(k) or an IRA.

To stay on track, you’ll need some patience and consistency. You may rest easier knowing you can handle an unplanned expense — especially as you get closer to your savings goals.

If you’re on the hunt for a personal loan, it’s easy to get overwhelmed by all the options. But it’s important to shop around so that you can find the best loan for your situation.

Whether you want to consolidate credit card debt or finance a home renovation, here’s our roundup of the best banks for personal loans and the features that make them stand out.

• What is a bank personal loan and what can I use it for?
• Best loan for home improvements: Wells Fargo personal loan
• Best loan for co-applicants: PNC Bank personal loan
• Best for short loan terms: U.S. Bank personal loan
• Best for a range of loan options: Regions Bank personal loan
• Best loan for lower credit scores: OneMain Financial personal loan
• What you should know about personal loans from banks

What is a bank loan and what can I use it for?

With a personal loan from a bank, you can borrow a fixed amount of money and pay it back — with interest — in monthly installments. Loan terms are generally between 12 and 84 months long, and you can generally get a loan from $1,500 to $100,000, depending on your credit.

A personal loan can come in handy when paying for unexpected expenses, home improvements or even consolidating credit.

Best loan for home improvements: Wells Fargo personal loan

Why Wells Fargo stands out: Wells Fargo is one of the nation’s largest banks, with about 4,900 bank branches in 37 states. When you’re planning a home renovation, it can be tough to predict exactly how much money you’ll need. Wells Fargo’s unsecured loans of up to $100,000. Just be careful not to borrow more than you need so you don’t wind up paying more in interest.

Here are some more details about Wells Fargo personal loans.

• Competitive interest rates — Wells Fargo offers competitive interest rates, particularly if you have good credit. The company also offers a 0.25% interest rate discount if you have a qualifying checking account and sign up for autopay.
• Multiple repayment options — Wells Fargo offers repayment terms ranging from 12 months to 84 months.
• Wells Fargo customers only — To qualify for a Wells Fargo personal loan, you’ll need to be an existing customer.
• No origination or prepayment penalty fees — The bank doesn’t charge an origination fee to process your personal loan, and you also won’t have to pay a prepayment penalty if you decide to pay off your loan early.

Read our Wells Fargo personal loan review for more information.

Best loan for co-applicants: PNC Bank personal loan

Why PNC Bank stands out: If you’re worried about qualifying for a personal loan on your own, PNC Bank may be a good option for you because it allows co-applicants. If you apply for a personal loan with a co-applicant, you’ll have to include the person’s address and annual income.

Here’s some more info about personal loans from PNC Bank.

• Rate discount available — If you have a PNC checking account and make automatic loan payments from it, you’ll get a 0.25% discount on your interest rate. PNC’s rates are competitive if you have strong credit. Any way to lower interest rates is a nice bonus.
• Small loans available — PNC personal loans start at just $1,000, which may be helpful if you need to borrow only a small amount.

To learn more, read our PNC Bank personal loan review.

Best for short loan terms: U.S. Bank personal loan

Why U.S. Bank stands out: If you prefer a one-stop shop, U.S. Bank’s personal loans may be a good option. U.S. Bank is one of the country’s largest banks. It offers a range of products, including personal and business checking and savings accounts, credit cards, mortgages and more.

Here are some more things to know about U.S. Bank personal loans.

• Autopay discount — U.S. Bank offers competitive rates. And if you set up automatic monthly payments through your U.S. Bank checking account, you’ll be eligible for an interest rate discount. Lower rates are always a plus.
• Loan terms as short as 12 months — Not all lenders offer loan repayment terms as short as 12 months. If you want to pay off your loan quickly, this may be a good option.

Read our U.S. Bank personal loan review for more details.

Best for a range of loan options: Regions Bank personal loan

Why Regions Bank stands out: Regions Bank has more than 1,300 branches in the Midwest and South, and it has a range of personal loan options. The company offers three fixed-rate personal loans — a secured installment loan, a deposit-secured loan and an unsecured personal loan.

Here’s some more info about a personal loan from Regions Bank.

• Apply for prequalification — If you apply for prequalification, you can see potential loan offers, with estimated rates and terms, without hurting your credit scores. Just remember that prequalification isn’t a guarantee of loan approval. If you complete a formal loan application it will trigger a hard credit inquiry, which may cause your credit scores to dip.
• Earn rewards by pairing with a Regions credit card account — If you apply and are approved for a Regions Relationship Rewards credit card account, you’ll earn rewards that you can redeem for cash, travel or merchandise.

For more info, read our Regions Bank personal loans review. 

Best loan for lower credit scores: OneMain Financial personal loan

Why OneMain Financial stands out: If you don’t have a great credit history, you may want to consider a personal loan from OneMain Financial. The lender says it looks at a number of factors when considering someone for a loan, including annual income, expenses and the purpose of the loan.

Here’s some more info about OneMain Financial.

• Quick loan application and funding process — OneMain says its application can take as little as 10 minutes, and you may receive the money as soon as the next business day if you’re approved by a certain time. But keep in mind that depending on your bank, there may be a wait before you can access your cash.
• Higher interest rates — OneMain may approve people with lower credit scores, but it may charge a higher interest rate as a result. The company’s starting rates are higher than the other lenders on our list.

Read our OneMain Financial personal loan review to learn more.

What you should know about personal loans from banks

There are several reasons why you might want to apply for a personal loan from a bank. You may need cash for a specific purpose like home improvements or a loan to pay off high-interest credit cards.

But not all banks offer personal loans. Even some large financial institutions like Bank of America and Chase Bank don’t.

Banks may also have stricter credit requirements for you to qualify — sometimes you’ll have to have good or excellent credit. If you have lower credit scores and qualify for a loan, you probably won’t get the best rates. But even if you’ll pay higher rates, there are personal loan options for bad credit.

If you don’t like your personal loan options from a bank, you can explore personal loans from credit unions or online lenders instead.

Whether or not you apply for a personal loan from a bank, it’s important to do your homework. If you’re approved for a loan, make sure to read your loan contract — and don’t be afraid to ask questions if there’s anything you don’t understand. You’ll rest easier knowing you made an informed choice.

How we picked these loans

We reviewed a number of personal loans offered by national and regional banks. We looked at each lender’s loan eligibility requirements, loan amounts, application and funding process, interest rates, fees and loan terms. We also considered the ability to prequalify without a hard credit inquiry, rate discounts and extra perks.

FAQs

*Approval Odds are not a guarantee of approval. Credit Karma determines Approval Odds by comparing your credit profile to other Credit Karma members who were approved for the personal loan, or whether you meet certain criteria determined by the lender. Of course, there’s no such thing as a sure thing, but knowing your Approval Odds may help you narrow down your choices. For example, you may not be approved because you don’t meet the lender’s “ability to pay standard” after they verify your income and employment; or, you already have the maximum number of accounts with that specific lender.

Ohioans may love college football, take pride in the Rock & Roll Hall of Fame and view their state as a great place to raise a family. But the state also ranks 19th (around the middle of the pack) for total tax burden, according to the nonprofit Tax Foundation.

Let’s look at some of the taxes you might encounter living and working in Ohio.

• The basics of Ohio taxes
• Ohio state income taxes
• Ohio local income taxes
• Ohio sales and use taxes
• Ohio property taxes
• Ohio inheritance and estate taxes
• Other taxes in Ohio

The basics of Ohio taxes

The Ohio Department of Taxation collects 30 state and local taxes. These include state and school district income taxes, sales tax, business and excise taxes.

Here’s a breakdown of some of the most common types of taxes. For up-to-date information, keep the Ohio Department of Taxation’s website handy. You may find its FAQs page, which covers all areas of Ohio tax, particularly helpful.

Ohio state income taxes

Ohio’s income tax rates have been going down gradually since 2005, according to the Ohio Department of Taxation. Like with federal taxes, Ohio has a progressive income tax system. This means folks who earn more have higher tax rates than lower-income residents.

Here are the Ohio tax rates and brackets for 2019.

Ohio income tax deductions and credits

Ohio offers credits and deductions that can help eligible taxpayers reduce their state income tax obligation.

Here are some that were available in 2018, and which might be available for 2019 as well.

• Ohio residents who received Social Security benefits that were included in their federal adjusted gross income, or AGI, may be able to deduct their benefit amount on their Ohio return.
• If you received military pay and allowances that were included in your federal AGI, you may be able to deduct them on your state return.
• Contributions to an Ohio 529 (CollegeAdvantage) savings plan may be deductible, up to $4,000 per beneficiary, per year.
• You may be able to deduct certain medical and dental expenses that weren’t covered by insurance, or that you weren’t reimbursed for and didn’t pay for with a health savings or flexible spending account. Eligible expenses must exceed a certain percentage of federal AGI in order to be deductible. And you can’t claim them on your Ohio return if you also claimed a deduction for these expenses on your federal return.
• Retirees who have an Ohio income tax base of less than $100,000 may be able to take up to a $200 credit (per return) for qualifying retirement income that was included in their Ohio AGI. Filers who are 65 or older may also qualify for an additional $50 senior citizen credit (per return) if they meet specific income requirements.
• If you qualify for the federal credit for child and dependent care expenses, you may also be able to qualify for the state-level version of the credit. You’ll need to meet Ohio AGI requirements to claim the state credit.
• Filers who qualified for the federal earned income tax credit may also qualify for the state-level credit.

How much is the federal earned income tax credit?

The earned income credit is designed to give a tax break to lower- and moderate-income earners. For 2019, credit amounts range from $529 for eligible taxpayers with no qualifying children to $6,557 for eligible taxpayers with three or more qualifying children.

Ohio local income taxes

Depending on where you live in Ohio, you may have to pay municipal income taxes. Your municipality determines your local income tax rate. These rates may range from 0.5% to 3%, with Ohio’s three largest municipalities — Cincinnati, Cleveland and Columbus — charging more than 2%. Municipalities can’t charge more than 1% without voter approval.

The Ohio Department of Taxation keeps a list of cities and villages with income taxes here. It suggests contacting your local municipality directly with questions about your local income tax rate.

Ohio sales and use taxes

Ohio levies a 5.75% state sales tax rate on all retail purchases and certain types of services (for example, landscaping and lawn services of $5,000 or more). In addition to state sales tax, counties and regional transit authorities can charge an extra 0.25% to 3% sales tax. But state law limits the total sales tax, including state, county and transit authority, to no more than 8.75%.

For example, Columbus, Ohio’s capital, is in Franklin County. Its total state and local sales tax rate is 7.50%.

Ohio has 88 counties. The Ohio Department of Taxation keeps track of county sales tax changes, which may happen quarterly, on this page.

Ohio also has a use tax that applies when sales tax hasn’t been paid on goods or services that should have been taxed. For example, if you buy something from a company out of state, and it doesn’t tack on sales tax, you’ll owe use tax when you file your state tax return. The purpose is to protect Ohio companies from unfair competition with out-of-state sellers.

The use tax rate is the same as the sale tax rate in the county where you use the property or received the taxable service.

Ohio property taxes

If you own real estate in Ohio, you’ll pay local property taxes, which vary based on where the property is located. County and local governments, school districts and special service districts set tax rates for their jurisdictions. But the tax base (the amount of property value the authority can tax) is the same throughout the state — 35% of your property’s market value. But farmland dedicated to conservation practices and enrolled in a federal government conservation program may be eligible for a value of $230 per acre. Auditors reappraise your property’s value every six years and update property values three years after the reappraisal.

To figure out your effective property tax rate, visit your county’s website. It may offer a search tool for you to see your effective tax rate and exactly how much property tax you owe.

If you’re a low-income senior or totally disabled Ohioan, you may qualify for a property tax break called the homestead exemption. The exemption, which is a credit on property tax bills, allows you to shield up to $25,000 of your home’s market value from property taxes, provided you meet the qualifications for claiming the exemption.

Ohio inheritance and estate taxes

Ohio no longer has an estate tax on estates of people who passed away on or after Jan. 1, 2013. If someone died before that, and the gross value of their estate exceeded $338,333, the estate may be subject to Ohio’s estate tax. Gross estate value may include a home, vehicles, bank accounts, business interests, life insurance proceeds, stock and other types of assets.

Other taxes in Ohio

Ohio also has other types of taxes that you may encounter while living, working or visiting in the Buckeye State.

• Alcoholic beverage tax — The alcoholic beverage tax applies to beer, wine, sparkling wine, vermouth, cider and mixed beverages. The tax ranges anywhere from 0.14 cents per ounce for 12-ounce (or smaller) bottles and cans of beer to $1.50 a gallon for sparkling wine and $5.58 for every 31 gallons of beer sold in barrels. The state also has a separate tax on spirits.
• Cigarette and tobacco products tax — The state charges $1.60 per 20-pack of cigarettes.
• Horse-racing tax — Ohio also collects a tax for horse racing. The rates depend on the type of wagering, either pari-mutuel (bettors who back the first three places share a pool of winnings) or exotic (when you bet on more than one outcome).

Bottom line

Whether you live in Ohio, or you’re considering a move, it’s important to understand how taxes may impact your family’s bottom line. Cities with an income tax and higher sales tax rate — like Columbus, for example — may be more expensive.

No matter where you live, it pays to be aware of all the taxes you pay and understand how they affect your finances. It’s possible you could find ways to lower your income tax obligations and save on other types of taxes, which could put more money back into your pocket.