You worked hard for your Social Security benefits, so it’s natural that you’d want to make the most of them. One way to do that is by selecting the best bank to help you hold onto more of your money.
Here are top ways choosing the right bank can help you stretch your Social Security dollars further each month so you can focus on living your best life in retirement.
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Higher Interest Rates on Your Money
The average checking account earns just 0.07% interest, according to the most recent FDIC data and the average savings account doesn’t do much better at 0.41%.
Banks with high-yield accounts can more than double your interest earnings on checking and multiply your savings interest by a factor of 10 or more.
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No or Fewer Bank Fees
Banks have just a few ways to make money and charging fees is one of them. Depending on your bank, you might be paying fees for:
- Monthly account maintenance
- Overdrafts
- Using out-of-network ATMs
- Ordering checks
- Letting your account balance dip below a certain level
- Making debit card purchases while traveling outside the U.S.
Selecting a bank that doesn’t charge these fees can easily save you $100 per year and it could save you much more.
Social Security Early Pay
Banks get notice of your impending Social Security check before the funds arrive for direct deposit into your account. Banks that offer Early Pay credit your account when they receive the information, so you can access your money up to two days before the deposit arrives.
If you’re on a tight budget, getting paid two days early could help you avoid overdrafts, late payment fees and other expensive consequences of running out of money before your next check lands in your account.
Cash Bonus for Direct Depositing Your Social Security Checks
Opening a new account can earn you hundreds of dollars in bonus money. You’ll have to meet certain requirements to qualify, but some banks make it easy. Capital One, for example, is offering a $250 bonus for new 360 Checking customers who set up and receive at least two direct deposits of $500 or more within the first 75 days. The account also checks other boxes, because it has no fees and no minimum deposit or balance requirements.
Cash-Back Rewards on Debit Card Purchases
Most people know that many credit cards offer rewards you can redeem for statement credits, travel discounts and other perks, but you might not be aware that debit cards can provide similar benefits.
Discover and PNC are perfect examples. Discover’s no-fee checking account debit card pays 1% cash back on up to $3,000 in purchases each month. PNC’s Purchase Payback program earns users cash back on purchases from partner businesses, including local ones such as gas stations.
Automating Savings
Personal finance experts usually recommend paying yourself first — put some money toward savings before you pay bills. Banks that let you automate saving by scheduling regular transfers from your checking account to your savings account make it easier to save so you can take advantage of the higher interest rates savings accounts provide.
Budgeting Tools
Adhering to a budget forces you to spend mindfully and in the process, avoid impulse purchases and other wasteful spending. Ally is one of a number of banks offering free budgeting tools to help you plan and stick with a budget. In this case, it’s a “bucket” system that lets you create categories for expenses and savings goals.
Whether Social Security is your primary source of income or “fun money” that supplements your retirement savings, it makes sense to stretch it as far as you can each and every month. The best banks help you do just that by providing high-yielding no-fee accounts with money-saving rewards and tools to help you manage your finances.
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7 Ways Choosing the Right Bank Can Help Stretch Your Social Security Further Each Month
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