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The Top IRA CD Rates – February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Top IRA CD rates
Source: iStock

The Best IRA CD Rates in February 2018

Term

Institution

APY

Minimum Deposit Amount

3 months

Bethpage Federal Credit Union

1.25%

$50

6 months

Ally Bank

1.60%

$5,000

12 months

First Internet Bank of IN

2.07%

$1,000

18 months

First Internet Bank of IN

2.12%

$1,000

2 years

MutualOne Bank

2.32%

$500

3 years

EverBank

2.40%

$5,000

4 years

First Internet Bank of IN

2.48%

$1,000

5 years

Connexus Credit Union

3.00%

$5,000

Rates as of Feb. 5, 2018

Perhaps you’ve decided to build a CD ladder within your IRA, or maybe you’re looking for a safe way to store your retirement cash for a specific period of time. Whatever the reason, you’re interested in getting an IRA CD and, understandably, want to know what products will give you the best rate of return.

You can get an IRA CD with terms ranging from three months to more than six years, with interest rates generally increasing with the term length. There are lots of options, so we’ve rounded up the top IRA CD rates that are available right now for a variety of terms. You’ll select your IRA CD terms based on your CD-ladder master plan or whenever you’ll need access to your money.

Every month, we choose the top IRA CD rates using data from another LendingTree company DepositAccounts.com, a database of offerings at more than 17,100 banks and credit unions. On Feb. 5, 2018, we sorted the products by APY, then eliminated institutions with a health rating below a B. We then eliminated products that are not available nationwide. From there, we chose the IRA CD with the highest APY among products with a minimum deposit no greater than $5,000. Here are the best options. (Average CD rates referenced below are based on DepositAccounts.com data as of Feb. 5, 2018.)

The top IRA rates in February 2018

3 Month IRA CD – Bethpage Federal Credit Union, 3 Month IRA (Traditional, Roth)

Three-month IRA CDs typically offer the lowest interest rates of any IRA CD term. Bethpage offers the best rate of 1.25% APY and a minimum deposit of $50. That rate is well above the national average.

6-Month IRA CD - Ally Bank, IRA High Yield 6-Month CD

Online Savings Account from Ally Bank

Six-month IRA CDs typically earn a little bit better, but they’re still not great. Ally Bank offers the highest interest rate at 1.60% APY for deposits between $5,000 and $25,000. That translates into an earning of $39.84 on a $5,000 deposit. If you deposit less than $5,000, you can still earn a decent APY of 1.50%. If you deposit $25,000 or more, you'll earn a 1.75% APY. Compare that to the average of all regular 6 month CDs, at 0.44%.

1-Year IRA CD Rates – First Internet Bank of IN, 12 Month IRA (Traditional, Roth)

Regular one-year CDs earn an average interest rate of 0.70% APY. First Internet Bank of IN, however, is offering a one-year IRA CD at 2.07% APY. You’ll need a $1,000 minimum deposit to earn $20.20 in interest once the CD matures.

18-Month IRA CD Rates – First Internet Bank of IN, 18 Month IRA (Traditional, Roth)

18-month regular CDs earn an average interest rate of 0.86% APY. First Internet Bank of IN, on the other hand, is currently offering 2.12% APY on a 18-month IRA CD. This would translate into an earning of $31.21 with a minimum $1,000 deposit.

2-Year IRA CD Rates – MutualOne Bank, 24 Month IRA Certificate (Traditional, Roth)

Two-year regular CDs earn an average interest rate of 0.96% APY. MutualOne Bank, on the other hand, is currently offering 2.32% APY on a 2-year IRA CD. This would translate into an earning of $23.47 with a minimum $500 deposit.

3-Year IRA CD Rates – EverBank, 3-Year Yield Pledge IRA (Traditional, Roth)

EverBank -  3-Year IRA CD Rates Three-year regular CDs are earning an average interest rate of 1.13% APY currently. EverBank is nearly doubling that, with an interest rate of 2.40% APY with their 3-Year Yield Pledge IRA CD. With those interest rates and a $5,000 minimum deposit, you would earn $357 when the certificate matures.

4-Year IRA CD Rates – First Internet Bank of IN, 48 Month IRA (Traditional, Roth)

Four-year regular CDs are currently earning an average interest rate of 1.36% APY. First Internet Bank of IN again claims the top interest rate for these IRA CDs, with an interest rate of 2.48% APY. You would earn $98.65 on this CD with a $1,000 minimum deposit.

5-Year IRA CD Rates – Connexus Credit Union – 60 Month IRA (Traditional, Roth)

Five-year IRA CDs hold the top spot for interest rates out of any category on our list. National averages for a regular 5-year CD is 1.63% APY, however Connexus Credit Union outperforms the average with a 3.00% APY on its 5-year IRA CD for members. The minimum deposit is $5,000 to earn this APY.

6+ Year IRA CD Rates – Air Force Federal Credit Union, 7 Year IRA

Air Force FCU-6 Year IRA CD Rates Interestingly, these very-long-term IRA CDs don’t offer higher interest rates than the shorter-term five-year IRA CDs. Air Force Federal Credit Union offers the highest term for their seven-year IRA CD, at 2.50% APY. That’s still a lot less than Connexus Credit Union which offered a 3.00% APY for a five-year IRA CD. Still, with Air Force Federal Credit Union’s seven-year IRA CD, you would earn $471.71 on a minimum deposit of $2,500 when the IRA CD matures.

3 questions to consider before opening an IRA CD

Opening an IRA CD generally requires filling out a form or talking to a banker. You’ll have to have a way to fund your IRA CD, whether that’s rolling over an existing retirement account into an IRA CD or depositing cash into the product. The same limits that apply to IRA contributions apply to IRA CDs: $5,500 per year ($6,500 if you’re over age 50) of your own money across all your IRA accounts each year, and you can do a rollover once per year.

Unless you’ve invested in a bump-up IRA CD, you won’t be able to take advantage of a higher rate until your CD matures. Withdrawing funds from an IRA CD before they mature will result in a stiff penalty. Bump-up IRA CDs give you a chance to increase your interest rate to a higher level if it’s available, but you’re generally only allowed to do this once or twice during the life of the CD.

You can either use the the direct-transfer method or the indirect-transfer method. The direct transfer method requires setting up your new IRA account filling out a form authorizing the bank or credit union to transfer money from the old account into the new account. The indirect transfer method involves you asking for a check from your old IRA account. You have up to 60 days to deposit that check into your IRA CD to avoid incurring a penalty.

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Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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RANKED: The Best Tax Software of 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

If you’re like most Americans, you dread filing your taxes. You have to track down the right forms, deal with the IRS and try to remember all your deductions and credits. That’s why so many people turn to online tax software to help file taxes. Great tax software simplifies the filing process without draining your wallet. But choosing the right software can be as much work as filing your taxes.

To help you choose the right software, we’ve tested 10 of the leading online tax software packages.

We’ve ranked each software on the following criteria: usability, helpfulness of support articles, availability of audit support and accessibility of tax and technical support. Then, we compared these criteria to the price to determine which software package is best for your situation.

Which tax software fits your needs? Find out below.

Best tax software of 2018

Best bargain for tax software: H&R Block More Zero

Of the 10 tax software packages we reviewed, only two allow all users to file state and federal taxes for free (Credit Karma Tax and DIY Tax). Unfortunately, Credit Karma suffers from bugs and inadequate technical support, and DIY Tax suffers on usability. This year’s best bargains offer the most functionality for the lowest price.

H&R Block More Zero H&R Block More Zero offers the best free software for the most users in 2018. Not only can you file free online, you can also use the H&R Block Tax Prep app to complete your filing.

Users who qualify for the More Zero package will find an easy-to-use Q+A interface, robust knowledge articles and free technical support alongside free state and federal filing. The More Zero software allows users to import their W-2 and 1099-INT forms. Plus, you can deduct student loan interest, property and real estate taxes and mortgage interest. On top of these deductions, you’ll be free to claim most major credits including the Earned Income Tax Credit, The Child Tax Credit and Dependent Care Credits. Among the top tax filing services, this is the most expansive free option available.

Unfortunately, not all users will qualify for H&R Block’s More Zero offer. If you need to declare investment income, self-employment income or you need to itemize beyond home ownership, H&R Block will charge you.

Runner-up: FreeTaxUSA

FreeTaxUSA offers free federal tax filing, but state filing costs an additional $12.95 for all users. FreeTaxUSA offers a question-and-answer interface, and in-software calculators that make it easy enough for beginners to file their taxes. FreeTaxUSA supports most major forms, so even people with rental properties, self-employment income or credits to claim get the same prices.

FreeTaxUSA doesn’t have as many import options, but it does allow you to import your previous returns (even from a competitor) to make comparisons easier. Plus, all users get email support for tax questions and technical support. For people who don’t qualify for H&R Block’s More Zero offer, FreeTaxUSA offers a bargain-priced alternative.

Best for Simple Filing: TurboTax Absolute Zero

Simple filers are W-2 employees who claim the standard deduction. You don’t earn money on the side, and your only other income comes from bank interest or dividends. You typically file as single or married filing jointly, and you want filing your taxes to take as little time as possible.

TurboTax Absolute Zero If you earn less than $100,000, and you don’t need to itemize your taxes, TurboTax Absolute Zero is likely the best software. You can use the highly-rated TurboTax app to snap pictures of your W-2 and file your taxes from your home. The Absolute Zero service supports student loan interest deduction, the saver’s tax credit and child-related tax credits.

Runner-up: H&R Block More Zero

H&R Block’s More Zero offers free state and federal filing for qualified users. Since H&R Block doesn’t limit their More Zero package to people earning less than $100,000, this is a great software for simple filers with higher incomes. With More Zero, you can claim all the deductions and credits that TurboTax offers, plus you can itemize your homeownership expenses.

The H&R Block user experience isn’t quite as easy to navigate as TurboTax’s (and it’s app isn’t as highly rated), but it is still an excellent choice for many filers.

Best for Maximizing Deductions and Credits: TaxSlayer Classic

Charitably-inclined people, most homeowners, parents who pay for child care, and people who qualify for the earned income tax credit may want to maximize deductions and credits.

TaxSlayer Classic TaxSlayer Classic offers federal filing for $17 and state filing for $22. The software offers a clean interface with a straightforward interview style for filing. For maximizing deductions and credits, you’re not likely to find a better software for the price. TaxSlayer gives you access to technical support, but you need to upgrade to ask tax-related questions.

Runner-up: FreeTaxUSA Free

FreeTaxUSA uses an interview-style interface to help users maximize deductions and credits. Unlike most software packages, FreeTaxUSA doesn’t force you to upgrade to itemize deductions or search for all major credits. You will pay nothing for federal filing and $12.95 per state. The interface is clean, and the interview questions aren’t stuffed with jargon. Even first-time filers should feel comfortable using the software.

FreeTaxUSA doesn’t have the same visual appeal or super-simple navigation of top competitors, but it offers a decent user experience at a fraction of the price of some of the top competitors.

Easiest for New Filers: H&R Block More Zero

Filing taxes for the first time can be intimidating, but a great tax software can put new filers at ease. When making recommendations for new filers, we prioritized the simplicity of the user interface and easy access to tax professionals.

H&R Block More Zero Many new filers will qualify for H&R Block’s More Zero free federal and state filing. H&R Block offers an easy-to-use interface that will make sense for first-time filers, plus it has lots of easy to understand articles and help buttons.

If you’re not feeling confident that you completed your taxes correctly, you can opt for the $49.99 Tax Pro Review. The certified tax professionals can review your return and offer expert guidance to be sure it’s done properly.

Runner-up: Credit Karma Tax

New filers who need to itemize their taxes, have self-employment income, capital gains or rental income won’t qualify for H&R Block More Zero. For these categories, Credit Karma Tax offers a free alternative for new filers. If you run into issues using Credit Karma Tax, you can chat with a live tax product professional. Plus, qualified filers can get an interest-free federal tax refund advance loan of up to $1,000 using Credit Karma’s Early Bird Advance.

Unfortunately, this recommendation has to come with a warning. Credit Karma has struggled with tech-related issues this year, and its customer service is overburdened. If you run into issues, you may want to consider an alternative option.

Best Audit Protection: FreeTaxUSA Deluxe

The IRS has the right to audit anyone, but people who have tax profiles that differ from the norm are more likely to get audited. No tax software (or accountant) can prevent you from getting audited, but some services will give you help during an audit. The best audit assistance from a tax software includes personal help from a tax specialist or an accountant. When you purchase audit assistance, you can expect that a tax specialist will help you understand IRS instructions if you get audited. They will also help you write responses to IRS notifications, and develop a plan to prepare for the audit.

FreeTaxUSA Deluxe FreeTaxUSA Deluxe costs $6.99 for the software, and an additional $0 for federal filing and $12.95 for state filing. The Deluxe upgrade doesn’t change the underlying software, but Deluxe users get an audit assistance guarantee. If you’re audited you’ll get personal assistance from a tax professional. The tax professional will help you understand IRS directions, and help you prepare for your audit. While the software isn’t quite as easy to use as major filing services (like H&R Block or TurboTax), the audit assistance is the lowest price on the market.

Runner-up: TaxSlayer Premium

TaxSlayer Premium uses an interview style and info bubbles to guide users through their returns. In addition to the excellent user experience, TaxSlayer Premium (and Self-Employed) offer audit assistance. If the IRS audits you, a trained tax professionals will help you prepare for the audit, and understand what the IRS needs from you. TaxSlayer Premium costs $35 for federal filing and $22 for state filing. TaxSlayer costs more than FreeTaxUSA, but it offers a slightly better user experience.

Best for Investors: H&R Block Premium - Online Version

If you buy and sell stocks, bonds, or options outside of your tax-advantaged retirement accounts, you need a tax software that can handle all your information. The best tax software for investors allows you to connect directly to your brokerage accounts. It should easily differentiate between dividend income, and short and long term capital gains.

H&R Block Premium H&R Block Premium online software costs $54.99 for federal filing and $36.99 for state filing. Although this is more expensive than other software services, the price is justified. H&R Block connects directly to your brokerage account to calculate the tax you owe. Connecting to your brokerage not only saves you time (a must if you’re an active trader), it can save you money too. H&R Block calculates your cost basis for you. This makes it possible for the software to accurately calculate gains and losses and differentiate between short and long term capital gains. H&R Block offers an easy way for investors to accurately calculate what they owe (and not pay a penny too much).

Runner-up: TurboTax Premier

TurboTax offers an exceptionally strong user experience for stock market investors who need to report stock sales, mutual fund sales or deal with Employee Stock Purchase Plans. TurboTax connects to thousands of brokerages, and they make it easy to accurately report your income. Plus, they calculate your cost basis in a stock which can minimize your taxes. TurboTax Premier online software costs $59.99 for federal filing and $36.99 for state filing. It’s a little bit more expensive than H&R Block, but it also offers a slightly better experience for investors.

Best for real estate investors: TurboTax Premier

Taxes for real estate investors can be confusing. Real estate investors can deduct tons of expenses, and they need a great software to help them calculate their deductions. In particular, a great tax software needs to help you depreciate your property, find and deduct real estate expenses and calculate amortization expenses.

To determine the best software, we prioritized features like helpful support articles, intuitive depreciation and amortization calculators and access to expert tax support.

TurboTax Premier TurboTax Premier costs $59.99 for federal filing and $36.99 for state. TurboTax has robust calculators and easy to understand articles that help users minimize their taxes. The step-by-step instructions make TurboTax a top choice for both new and experienced real estate investors. On top of that, QuickBooks users can upload their expenses directly to TurboTax, and TurboTax will do the hardest work for you.

Runner-up: TaxSlayer Premium

TaxSlayer Premium costs $35 for federal filing and $22 for state filing. The real estate portion of TaxSlayer has real estate calculators that are still simple enough for most real estate investors. If you get confused, or you’re not sure how to classify an expense, you can speak to a tax specialist who can guide you to the right decisions.

TaxSlayer doesn’t allow you to import any real estate forms, and the step-by-step guidance isn’t as robust as TurboTax’s. However, TaxSlayer costs 40 percent less than TurboTax and comes with audit assistance. For the right real estate investor, TaxSlayer could be a bargain.

Best for the self-employed: TaxSlayer Classic or Self-Employed

Are you a freelancer or contractor? If so, you may need help deducting many business-related expenses. This means that taxes can get messy in a hurry. The best tax software for self-employed people makes it easy to claim business deductions. It will also offer robust explanations that will help you understand amortizing equipment expenses and whether you qualify for a home-office deduction.

TaxSlayer Classic TaxSlayer Classic uses a simple interview filing system that makes it easy for the self-employed to declare their income and minimize deductions. TaxSlayer Classic supports all forms needed to minimize deductions. At a cost of just $17 for federal filing and $22 for state filing, TaxSlayer offers a top software experience at a reasonable price. If you prefer to get help from a professional (and get audit assistance), you can upgrade to TaxSlayer Self-Employed for $55 (federal and state filing included).

Runner-up: TurboTax Self-Employed

TurboTax makes it easy for those who are self-employed to find deductible expenses using its interview-style interface. It offers dozens of articles that can help self-employed folks understand their taxes better. Self-employed filers who use QuickBooks for their bookkeeping can effortlessly import their expenses. Once you import your data from QuickBooks, TurboTax does the work of categorizing expenses, and deducting them.

TurboTax Self-Employed is one of the most expensive tax software options online; it costs $89.99 for federal filing and $36.99 for state filing. It comes with a complimentary one-year subscription to QuickBooks Self-Employed accounting software (offer not valid if you’re a QuickBooks subscriber already on a payment plan).

Best for getting your return fast: Credit Karma Tax

Credit Karma Tax is offering an “Early Bird Advance” of up to $1,000 for qualified filers. The advance comes on a prepaid debit card (American Express Serve® Card).

Credit Karma Tax Technically, the advance is an interest-free loan issued through Credit Karma’s bank partner, MetaBank. If you accept the advance, the IRS will send your full refund to MetaBank. MetaBank will repay the loan using the refund, then send the remainder to you.

Credit Karma Tax is a completely free filing service, and it has a decent user interface. Unfortunately, it has had several technical glitches this year, and Credit Karma has struggled to respond in a timely manner. If you run into trouble, you may want to try a different filing service.

Runner-up: TurboTax Self-Employed

TurboTax makes it easy for those who are self-employed to find deductible expenses using its interview-style interface. It offers dozens of articles that can help self-employed folks understand their taxes better. Self-employed filers who use QuickBooks for their bookkeeping can effortlessly import their expenses. Once you import your data from QuickBooks, TurboTax does the work of categorizing expenses, and deducting them.

TurboTax Self-Employed is one of the most expensive tax software options online; it costs $89.99 for federal filing and $36.99 for state filing. It comes with a complimentary one-year subscription to QuickBooks Self-Employed accounting software (offer not valid if you’re a QuickBooks subscriber already on a payment plan).

Best for small businesses: TurboTax Business

Sole proprietors and single-member LLCs can also use tax software for self-employed filers. As long as the software supports a Schedule C, it will work for your small business needs.

If you’re part of a partnership, a corporation or a multi-member LLC, then you need more than the standard tax software that we reviewed above.

Corporations need software that supports Form 1120. S Corporations (with more than one member) need tax software that supports Form 1120S. Partnerships and multi-member LLCs need software that supports Form 1065.

If you need business tax software, consider one of these options.

TurboTax Business

Total cost:

  • $159.99 for federal software (up to five federal e-files)
  • $49.99 per state software
  • $19.99 per state e-filing fee.

TurboTax Business offers the same interview-style interface that consumers love, but it offers increased functionality. Small-business owners can use it to create unlimited W-2 forms and 1099-MISC forms.

H&R Block Premium and Business

Total Cost:

  • $79.95 for federal software (up to five federal e-files)
  • $39.95 per state (first state free)
  • $19.95 per state filing.

H&R Block offers an excellent interview-style user interface with increased functionality such as creating employee forms. On top of this, you can chat with a live tax expert after you purchase the software. This software supports the major forms for businesses, estate and trusts and nonprofit organizations.

TaxAct for Small Businesses

Total costs:

  • $97 State and Federal Bundle
  • $60 Federal filing only

TaxAct has a slightly more stripped-down user interface than H&R Block or TurboTax, but business owners can easily complete everything they need to do. TaxAct comes with unlimited tax support from a professional when you purchase the product.

Tax Software Pricing, Plans, and Insights

1040.com

1040.com - Tax Software Pricing According to 1040.com, tax filing should be smart and simple. 1040.com is on point by offering free live chat and email-based technical support. They also have support articles that are approachable and informative. Simple filers will have an easy time using 1040.com. Plus if you qualify for a 1040EZ (meaning you have W-2 income and no dependents and you don’t need to itemize), you can get completely free filing.

Unfortunately, people with more complex filing needs will find 1040.com unusable. It doesn’t have built-in calculators that real estate investors or stock market investors need to file accurately. The higher-priced levels don’t offer the functionality to justify the price.

If you qualify for the free edition of 1040.com, consider using it, but other filers will need to walk away.

 

Free $24.95 $44.95
Price $0 Federal
$0 Free
$24.95 Federal
$19.95 State
$44.95 Federal
$24.95 State
Best For 1040EZ (No Dependents, income under $100,000) Itemizers, people with children, stock market investors Self-employed, real estate investors, people with income

Superlatives: None

Credit Karma Tax

Credit Karma Tax Credit Karma Tax offers free federal and state filing for all users. Even though Credit Karma is completely free, it supports almost all major forms, so you can be confident that it has what you need.

Credit Karma’s refund dashboard shows you how income, deductions and credits influence your tax refund. In addition to the helpful refund tracker, Credit Karma offers an Early-Bird Advance. Early filers may qualify for an interest free loan of $500, $750 or $1,000 on a Serve card. Right now, Credit Karma is the only free online filing service that offers refund advances. Credit Karma also offers 24/7 live chat support from tax specialists.

As far as free filing services go, Credit Karma Tax looks great on paper. Even though it did away with the interview-style navigation, it still has a decent user interface. Unfortunately, during testing, we found a few bad gateways, and the default settings “hide” certain forms from users which makes navigation difficult. Credit Karma Tax doesn’t allow users to import forms (other than prior year tax returns and W-2 forms), which can be a pitfall for active traders and real estate professionals.

Adding to those negatives, Credit Karma seems to struggle with their tech support. Users can request tech support via email, but Credit Karma has posted that response time may be delayed due to the high volume of help requests.

Superlatives: Best for getting your refund fast, runner-up easiest for new filers

DIY Tax

DIY Tax DIY Tax offers 100% free federal and state filing for everyone. The software is accurate, and it allows you to import your prior year’s taxes for your reference.

However, DIY Tax has a cluttered user interface. With so much jammed on every page, you might miss something important while filing. Real estate investors and small business owners need to be careful with this platform, since the depreciation and amortization calculators can be confusing. The software offers free technical support via live chat or email, but they push Liberty Tax Service offices for tax support (Liberty Tax is their parent company). As you file, you will see ads for their offices in the software. Often, these ads include a coupon for an office visit. Remember, filing in a Liberty Tax office isn’t free.

Superlatives: None

eSmart Tax

eSmart Tax eSmart Tax and DIY Tax are the same software package. However, you have to pay for eSmart Tax. Why would you pay? The Deluxe and Premium packages offer unlimited phone or email support from tax specialists, which can prove helpful. But in most cases, eSmart Tax isn’t a great option.

 

Free Basic Deluxe Premium
Price $0 Federal $29.99 State $24.95 Federal
$35.95 State
$38.95 Federal
$35.95 State
$49.95 Federal
$35.95 State
Best For 1040EZ Homeowners, people with dependents, sole proprietors, freelancers without inventory and with less than $5,000 in expenses Stock market investors with dividend income, self-employed people with home office deductions or inventory expenses Stock market investors with capital gains or losses, real estate investors, people who sold a home in the previous years

Superlatives: None

FreeTaxUSA

FreeTaxUSA Deluxe FreeTaxUSA isn’t actually free, but it’s one of the best bargains in the tax software market. The software guides users through an interview process that makes filing easy. The interface is clean, so you don’t have to worry about missing something important. FreeTaxUSA makes it easy to import your tax return from a competitor, so you can review year-to-year changes in your taxes. You can also chat with tax and technical specialists if you run into issues. This kind of support makes FreeTaxUSA stand out among other bargain priced software services.

FreeTaxUSA offers two pricing tiers. At either level, you’ll pay at least $12.95 for state filing, and you can upgrade to a Deluxe software package for an additional $6.99. The Deluxe upgrade gives you priority support (meaning you get to cut in line if you need tax help). Upgrading also gives you access to a tax specialist if you’re audited.

 

Free Deluxe
Price $0 Software fee
$0 Federal
$12.95 State
$6.99 Software fee
$0 Federal
$12.95 State
Best For All major schedules supported Anyone who wants audit support

Superlatives: Best Audit Protection, best bargain for self-employed workers

H&R Block Online

H&R Block H&R Block is one of the biggest names in tax software for good reason. People with complex tax returns will love the value that H&R Block offers. H&R Block offers unlimited technical support to all filers, and phone and chat tax support for those who pay. H&R Block’s More Zero option is one of the most inclusive free filing options on the market. Homeowners, parents, and savers with W-2 income can maximize their refund using the free option.

H&R Block offers easy navigation, helpful interview questions, and robust articles that can help you untangle even the most complex filing situation. You can also import information from your brokerage account which makes filing capital gains taxes a snap. If you run into issues, you can either ask a tax professional, or you can upgrade to the $44.99-$89.99 Tax Pro Review. With a Tax Pro Review, an H&R Block Tax Professional will review your return before you file, and fix any errors.

The only disappointment is that H&R Block online filing customers do not get a guarantee of audit assistance. To get audit assistance from H&R Block you must purchase a desktop software or visit one of the offices.

H&R Block’s software isn’t quite as easy to use as TurboTax, but it’s a bit less expensive. In particular, freelancers and self-employed people with basic expenses will see huge value since they can purchase the Premium edition.

As an added bonus, you can get up to a 5% boost on your refund if you choose to have your refund loaded to an Amazon gift card.

 

More Zero Deluxe Premium Self-Employed
Price $0 Federal
$0 State
$49.99 Tax Pro Review
$34.99 Federal
$36.99 State
$79.99 Tax Pro Review
$54.99 Federal
$36.99 State
$89.99 Tax Pro Review
$74.99 Federal
$36.99 State
$89.99 Tax Pro Review
Best For Homeowners, parents, people with W-2 income Stock market investors dividend income only, self-employed with basic expenses, other itemizers Real estate investors, self-employed with less than $5000 in expenses and no inventory, stock market investors with capital gains Self-employed people, Uber drivers

Superlatives: Best bargain, easiest for new filers, best for investors, runner-up best for simple filing

OLT.com

OLT.com OLT.com offers bargain basement pricing, and it supports all major filing situations. Unfortunately, the low price shows in the interface. It’s cluttered, difficult to navigate and doesn’t allow many imports. OLT.com has a large volume of support articles, but it stuffs the articles with confusing tax-jargon.

The one bright spot for this software is the $7.95 Premium upgrade that brings audit support and tax help from a professional. Even with this value, we don’t recommend OLT.com for most situations. This year, you can find a better software at lower prices.

 

Free Premium
Price $0 Federal
$9.95 State
$7.95 Federal
$7.95 State
Best For All major schedules supported Anyone who wants audit support

Superlatives: None

TaxAct

TaxAct TaxAct uses a question-and-answer style to guide you through your taxes. It offers helpful articles, and you can receive phone and email support from tax and technical professionals. If you want audit assistance from TaxAct, you must upgrade to the expensive Premium level.

If you’re a stock market investor, you can use TaxAct’s stock market assistant to help you minimize your capital gains taxes. This feature becomes available at the self-employed level. It’s a helpful tool, but not as good as connecting directly to your brokerage accounts.

For the most part, TaxAct simplifies tax filing, but it costs more than it should. TaxAct costs nearly as much as industry leaders H&R Block and TurboTax, but it does not provide the same value.

 

Free Plus Self-Employed Premium
Price $0 Federal
$0 State
$29.95 Federal
$37 State
$44.95 Federal
$37 State
$59.95 Federal
$37 State
Best For 1040EZ, 1040A Itemizers, stock market investors with only dividend income, real estate investors Self-employed, stock market investors with capital gains and losses People seeking audit defense

Superlatives: None

TaxSlayer

TaxSlayer TaxSlayer has an incredible user interface and helpful support articles. When it comes to itemizing deductions or finding credits, it is one of the easiest to use tax software packages on the market. In addition to a great software experience, TaxSlayer also premiered refundNOW in 2018. Qualified filers can get an interest-free advance of up to $1000 from TaxSlayer’s partner bank, River City Bank. The tax refund comes either via a prepaid debit card or a direct deposit.

Unlike most tax software, TaxSlayer supports all forms on its second-tier Classic level. If you’re a real estate investor or a self-employed worker, this means that you can complete your return at a low price. Their Premium and Self-Employed levels gives you access to live chat support, audit protections and help from tax professionals.

When you’re comparing prices at TaxSlayer note that Classic, Premium and Self-Employed offer the same software but have different support features.. The Classic level doesn’t include help from tax professionals or audit assistance, which are included with Premium or Self-Employed levels. Premium and Self-Employed are virtually identical except for their pricing. The Self-Employed option is $2 cheaper if you have to file both state and federal taxes, but Premium is $20 cheaper if you only need to file federal taxes.

 

Simply Free Classic Premium Self-Employed
Price $0 Federal
$0 First State ($22 each additional)
$17 Federal
$22 State
$35 Federal
$22 State
$55 (Federal and State included)
Best For 1040EZ All others (itemizers, stock market investors, real estate investors, self-employed, etc.) People who want audit assistance or help from a tax professional and DO NOT need to file a state return People who want audit assistance or help from a tax professional and MUST file a state return

Superlatives: Best for maximizing deductions and credits, best for self-employed, runner-up best audit protection, runner-up best for real estate investors, runner-up best for getting your refund fast

TurboTax

TurboTax If you’re looking for the Cadillac of tax software, TurboTax again takes the prize. Their interface is easy to navigate, and it offers superior usability for real estate investors, self-employed workers and stock market investors. Paying customers who get stuck can get help from technical professionals. TurboTax takes their support seriously. With your permission, support staff can “draw” on your screen to guide you through tough situations. However, technical support isn’t tax support. If you need help from a tax professional, you have to upgrade to the overpriced $149.99 TurboTax Live option. This gives you on-demand support from a tax professional, and a tax pro will review your taxes before you file.

1040EZ filers get to use TurboTax Absolute Zero for free, but all other filers will pay a far higher price. If you’re just looking to itemize your taxes, TurboTax isn’t worth the price, but active traders, real estate investors and self-employed people may find that the price is worth it.

Unfortunately, TurboTax premium pricing means that some offerings are not worth the money. If you want audit support from TurboTax you have to purchase TurboTax Max. The price of audit support. TurboTax’s MAX costs $44.99 which is a lot higher than audit support from other companies.

 

Absolute Zero* Deluxe* Premier* Self-Employed* TurboTax Live*
Price $0 Federal
$0 State
$39.99 Federal
$36.99 State
$59.99 Federal
$36.99 State
$89.99 Federal
$36.99 State
$149.99 Federal
$36.99
Best For 1040EZ/ 1040A Itemizers Investors, real estate investors Self-employed People who want a review from a CPA

*Anyone can upgrade to TurboTax’s MAX for $44.99.

Superlatives: Best for simple filers, runner-up best for investors, best for real estate investors, runner-up best for self-employed

Tax software FAQs

The IRS sends 90% of refunds within three weeks of receiving the return. The sooner you file, the sooner you can expect your return.

You can check on the status of your refund starting 24 hours after e-filing using the “Where’s my refund?” page from the IRS. You can also check on your refund status using the IRS2Go app.

Tax-related identity theft is the no. 1 reported form of identity theft. However, most theft isn’t the direct result of using online software. Any time you apply for a credit card or use online banking, your information enters the digital world. If this information gets stolen, you’re at risk. Nobody can eliminate the possibility of identity theft, but you can work to protect yourself.

Part of protecting yourself involves only giving out your information on trusted websites. When you file your taxes, you provide all your personally identifiable information to a software service. You need to know whether or not that information is safe.

Every software company that we reviewed is an authorized IRS e-File provider. This means that these sites comply with the security and business standards set forth by the IRS.

None of the software packages we reviewed will sell your personal information to a third party. They require you to use multi-factor authentication. This makes it difficult for hackers to access your personal information. These websites are as secure as possible, but they are not 100% safe.

If you think you’ve been the victim of tax fraud, contact the IRS immediately at 1-800-908-4490 to work with their resolution specialists. You will need to file an identity theft affidavit that explains that someone filed taxes in your name.

If you don’t want to use tax software, you can choose a paper filing option. Each state requires you to mail your check to a different office.

You can also use the IRS’s free electronic fillable forms. However, these offer limited guidance and can be difficult to use. With so many other free options, these should be a last resort.

Finally, you can hire a professional tax preparer to do your taxes for you. Be sure that the person you hire is in the Directory of Federal Tax Return Preparers with Credentials and Select Qualifications.

An accountant can save you time, headache, and in some cases, money. Tax professionals must follow the tax code, but their specialized knowledge helps them pick up on deductions or credits that you might miss on your own.

In general, the more complex your tax return, the more you may want to hire an accountant. If you choose to hire an accountant, be sure that they are an authorized tax return preparer. They should sign your return as an authorized preparer.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Hannah Rounds
Hannah Rounds |

Hannah Rounds is a writer at MagnifyMoney. You can email Hannah at hannah@magnifymoney.com

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Best of, Credit Cards

Credit Cards: Find the Best Credit Card Offers & Deals – February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

Credit Cards: Find the Best Credit Card Offers & Deals

Updated February 15, 2018

The best credit cards can help you earn $2 or more for every $100 you spend - an easy way to make $100s or even $1,000s a year. When done properly, low rate credit cards are also the cheapest way to borrow. You can get 0% interest for up to 2 years. And credit cards are the best way to build, rebuild or maintain an excellent credit score, without paying fees.

But if you get it wrong, you can easily end up buried under a pile of expensive debt. This is a step-by-step guide that will help you find the best credit cards while avoiding expensive traps.

 

Top Credit Card for 2018

The Amex EveryDay® Credit Card from American Express

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on American Express’s secure website

Terms Apply

Rates & Fees

Read Full Review

Annual fee

$0

Intro Purchase APR

0% for 15 Months

Intro BT APR

0% for 15 Months

Balance Transfer Fee

$0 balance transfer fee.

Regular Purchase APR

14.24%-25.24% Variable

Rewards Rate

2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x), 1x points on other purchases.

New for February 2018, The Amex EveryDay® Credit Card from American Express ranks as our top credit card for 2018. This card offers a combination of benefits that are unmatched among other cards in the market, including 0% intro periods, rewards, and great cardholder perks — all at a $0 annual fee.

Cardholders can utilize the intro periods for both balance transfers and purchases by taking over a year to pay off debt without accruing interest. The balance transfer offer has a $0 balance transfer fee. The transfers must be requested within 60 days of account opening, which saves you the typical 3% transfer fee most other cards charge.

Beyond the intro periods, there is a rewards program where cardholders can earn 2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x), 1x points on other purchases. This rate is beneficial for people who spend $500 a month at U.S. supermarkets, since this spending allows you to maximize rewards at the higher rate.

The Membership Rewards® points you earn can be redeemed for a variety of options, and a great option for travelers is the ability to transfer points to participating frequent flyer programs including Delta SkyMiles, JetBlue True Blue, Virgin America Elevate, and British Airways Avios. Often these transfers are on a 1:1 rate, with some programs requiring more or less points. Additional redemption options include booking for travel, gift cards, merchandise, pay with points at checkout and statement credit. This card also has a wide range of additional perks that vary from shopping and entertainment benefits to travel and purchase protections.

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  • Simple Welcome Offer
  • The 2-point bonus on grocery store spending is capped
  • You need 20 transactions each month to get the the 20% bonus

Tip: Make any large purchases or balance transfers as soon as you can so you can benefit from the 0% intro period.

Read our full review of the The Amex EveryDay® Credit Card from American Express here.

How to Choose and Use a Rewards Card

It is now easy to earn great rewards when you use a credit card for your spending. You should earn at least 2% cash back, and can earn even more with a bit of work. The money can add up quickly. If you spend $1,000 a month, you can earn $240 a year. It is not very often you can get something for nothing. But if you make the right choice and follow the rules, you can earn significant rewards.

How to Choose

Best Cash Back Credit Cards

Cash back credit cards are a great way for you to earn money back from everyday purchases. There are two types of cash back credit cards — flat-rate and category. Flat-rate cards offer the same cash back rate for all purchases, while category cards offer higher rates for certain purchases like gas, grocery, travel, and dining. Below we break down the best cash back credit cards.

Best Flat-Rate

These are the top cards offering a flat cash back rate.

Citi<sup>®</sup> Double Cash Card – 18 month BT offer

1% When You Buy + 1% When You Pay

Citi® Double Cash Card – 18 month BT offer

The Citi® Double Cash Card – 18 month BT offer is the best overall cash back credit card. So long as you pay your statement balance in full and on time every month, you will earn 2% cash back. You earn 1% unlimited cash back on all of your purchases. You then earn an additional 1% on payments based on your purchases. The bonus cash back can take up to two billing cycles to post.

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  • No caps on how much cash back you can earn.
  • Cash back earning formula is easy to understand
  • There is a range of interest rates. You won’t know yours until after you apply

Key Information

Credit Score Required : Good or Excellent Credit

Purchase Interest Rate : 14.49% - 24.49% Variable

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer : 0% for 18 months

BT Fee : 3% or $5, whichever is greater

Tip: Make sure you pay your statement balance in full and on time to maximize your cash back.

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on Citibank’s secure website

FULL REVIEW 

Fidelity<sup>®</sup> Rewards Visa Signature<sup>®</sup> Card

Unlimited 2% Cash Back on Every Purchase

Fidelity® Rewards Visa Signature® Credit Card

The Fidelity® Rewards Visa Signature® Credit Card offers Fidelity customers a generous 2% cash back on all purchases, with no limits or category restrictions. The cash back you earn must be deposited into a Fidelity account, but you don't need to have a Fidelity account to apply for the card. If you do not have a Fidelity account, they will open a Fidelity Cash Management Account to deposit your cash back. It works like a checking account with no minimum balance requirement and no monthly fees.

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  • Simple cash back earning formula
  • No caps on how much cash back you can earn
  • You need to have a Fidelity account in order to redeem your cash back

Key Information

Credit Score Required : Excellent Credit

Purchase Interest Rate : 14.99% Variable

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer : None

BT Fee : 3% or $5, whichever is greater

Tip: You don't need to keep your retirement or stock accounts with Fidelity to qualify for this card. Anyone can apply.

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on Fidelity’s secure website

FULL REVIEW 

Best Category Bonuses

Here are the top cash back cards that pay much higher rates in certain bonus categories, which can be a great way to boost your returns.

Fort Knox Federal Credit Union Visa<sup>®</sup> Platinum Card

Unlimited 5% Cash Back on Gas

Fort Knox Credit Union Visa® Platinum Card

If you spend a lot of money on gas, there is no better card than this. You can earn unlimited 5% cash back on spending at gas stations. You will earn 1% on all other spend. You must be a member of the credit union, but anyone can join. Pay $5 to join the American Consumer Council of Kentucky (you can do that here) and you will be eligible to join.

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  • No limit to the cash back you can earn, even in the bonus category
  • You have to be a member of the credit union to get the card

Key Information

Credit Score Required : Good or Excellent

Purchase Interest Rate : as low as 10.25%

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer : None

BT Fee : None

Tip: If you are not yet a member, you can use the non-member application process. Once approved, you can join with your $5 contribution to American Consumer Council.

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on Fort Knox Federal’s secure website

MORE GAS CASH BACK CARDS 

Blue Cash Preferred® Card from American Express

6% Cash Back at U.S. Supermarkets (Up to $6,000 of Spend, then 1%)

Blue Cash Preferred® Card from American Express

The unparalleled 6% cash back rate at U.S. Supermarkets makes this one of the best cards on the market for heavy grocery shoppers. Even with the $95 annual fee, most grocery shoppers will come out ahead. You will also earn 6% cash back at U.S. supermarkets (on up to $6,000 per year in purchases, then 1%). 3% cash back at U.S. gas stations and at select U.S. department stores. 1% cash back on other purchases. You'll earn a $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

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  • Simple, easy to understand Welcome Offer
  • There is an Annual fee

Key Information

Credit Score Required : Excellent/Good

Purchase Interest Rate : 14.24%-25.24% Variable

Annual Fee : $95

Welcome Offer : $200 statement credit after you spend $1,000 in purchases on your new Card within the first 3 months.

Intro Purchase APR : 0% for 12 months

Intro Balance Transfer : 0% for 12 months

BT Fee : Either $5 or 3% of the amount of each transfer, whichever is greater.

Tip: If you spend less than $200 a month on groceries, you will earn less than 2% cash back (after taking into account the fee) and would be better with Citi Double Cash or Fidelity American Express. But, if you spend more each year, this is a great option.

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on American Express’s secure website

Terms Apply

Rates & Fees

MORE GROCERY CASH BACK CARDS 

PenFed Premium Travel Rewards American Express® Card

4.25% Cash Back on Airfare Expenses

PenFed Premium Travel Rewards American Express® Card

If you buy a lot of plane tickets every year, this card can be particularly lucrative. You will earn 5 points for every $1 spent on air travel. When you convert those points to a prepaid Visa card, those 5 points turn into a 4.25% earn rate. You earn 1 point per $1 on all other purchases. There is no annual fee, no foreign transaction fees and 20,000 bonus points when you spend $2,500 within three months of account opening.

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  • No annual fee and no foreign transaction fees
  • The conversion from points to $ can be confusing
  • You must be a member of the credit union

Key Information

Credit Score Required : Good or Excellent

Purchase Interest Rate : 9.74% - 17.99% Variable

Annual Fee : $0

Sign-on Bonus : 20,000 bonus points when you spend $2,500 within 3 months of opening an account.

Intro Purchase APR : None

Intro Balance Transfer : 0% for 12 months

BT Fee : 3%None

Tip: Keep an eye open on the redemption opportunities. You can sometimes find better deals than just prepaid Visa® cards.

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on PenFed Credit Union’s secure website

MORE CARDS FOR TRAVEL SPENDING 

Uber Visa Card

4% for Dining Out

Uber Visa Card

This card appears to have millennials’ interests at heart, offering higher rewards rates for eating out and credits toward streaming subscriptions. The Uber Visa Card offers 4% back on dining purchases, from restaurant and bar purchases to takeout and UberEATS. Also offered: 3% back on hotel and airfare including vacation home rentals; 2% back for online purchases covering everything from Uber and online shopping to video and music streaming; and 1% on everything else.

As mentioned, dining purchases are defined as spending at restaurants, bars, on takeout or via the UberEATS service. Points can be redeemed for Uber credits, gift cards or cash back.

Another perk: There is no annual fee with this card. And there’s a terrific sign-up bonus that requires you to spend $500 within 90 days from account opening to earn $100. Also, you can earn up to a $50 credit for online subscription services after you spend $5,000 or more on your card per year.

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  • Good disclosure: they tell you what you need to know
  • Simple introductory bonus
  • Impossible to know your interest rate until you apply

Key Information

Purchase interest rate : 16.24% - 24.99% Variable

Annual fee : $0

Sign-on bonus : Earn $100 after spending $500 on purchases in the first 90 days.

Intro purchase APR : None

Intro balance transfer : None

BT fee : $10 or 3%, whichever is greater

Tip: Use this card for all dining, hotel and airfare purchases to maximize your rewards at the higher rate.

FULL REVIEW 

Do you spend a lot of money in other categories? You can find the best cash back credit cards for every category here.

Best Travel Credit Cards

If you would like to earn free travel, there are a number of credit cards designed specifically to help you earn free flights quickly. Here are the best travel rewards credit cards.

Best Credit Cards for U.S. Travel

Bank of America® Travel Rewards Credit Card

Best No Annual Fee Travel Card - Miles Can Be Used Anywhere

Bank of America® Travel Rewards Credit Card

With this card, you earn unlimited 1.5 points for every $1 you spend. There are no restrictions and no blackout dates. Every 100 points can be redeemed for $1 worth of travel. The rewards get even better if you have “Preferred Rewards” at Bank of America®. If you're a Preferred Rewards client, you could increase your points earned with a bonus of 25% - 75%.

There is no annual fee and no foreign transaction fees. You can use your points for a wide range of travel options, including flights, hotels, vacation packages, cruises, rental cars and even pesky baggage fees.

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  • Simple introductory bonus
  • No limit to the points you can earn
  • There is a range of interest rates. You won’t know yours until after you apply

Key Information

Credit Score Required : Good or Excellent

Purchase Interest Rate : 16.24% - 24.24% Variable

Annual Fee : $0

Sign-on Bonus : 20,000 bonus points after making at least $1,000 in purchases in the first 90 days.

Intro Purchase APR : 0% for 12 billing cycles

Intro Balance Transfer Offer : None

BT Fee : 3% or $10, whichever is greater

Tip: The Preferred Rewards program offers excellent rewards. If you rollover your old 401(k) or IRA to Merrill Edge®, you can get up to a 75% credit card bonus and ATM fee reimbursement with a Bank of America® checking account.

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on Bank Of America’s secure website

Best Credit Cards for International Travel

These are the best credit cards for use when traveling outside of the country. None of these cards have foreign transaction fees. And some of them even have chip and pin, helping to increase acceptance.

Platinum Rewards MasterCard® from First Tech FCU

No Annual or Foreign Transaction Fee + Chip and Pin Functionality

First Tech Credit Union Platinum Rewards MasterCard®

This card is a great companion for overseas travel with no annual fee or foreign transaction fee. Even better, the card offers chip and pin functionality. Most major credit card issuers in America have rolled out chip and signature, which can be problematic overseas. If you try to use your card at a ticket machine or with a waiter’s portable payment device, you have a good chance of being rejected.

It's easy to join the credit union —membership is free if you work for a sponsor technology company, work for the state of Oregon or live in Lane County, Oregon. Otherwise, you just need to join the Financial Fitness Association with a one-time fee of $8. There is a sub-par rewards program: 1 point for every $1 you spend.

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  • No annual fee or foreign transaction fees
  • You have to be a member of the credit union

Key Information

Credit Score Required : Good or Excellent

Purchase Interest Rate : as low as 10.99% Variable

Annual Fee : $0

Sign-on Bonus : $200 bonus cash back after you spend $500 on purchases in the first 3 months from account opening.

Intro Purchase APR : None

Intro Balance Transfer APR : 0% for 12 months

BT Fee : None

Tip: Use this card for foreign travel, not for rewards since you earn a very low rate.

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on First Technology Federal Credit Union’s secure website

Capital One® QuicksilverOne® Cash Rewards Credit Card

Best Foreign Travel for Fair Credit

Capital One® QuicksilverOne® Cash Rewards Credit Card

This card is designed for people with average credit. If you have defaulted on a loan in the past five years (but not more than once), or if you have had limited credit history (at least one account for less than three years), you would be considered “average.” With this card, you can earn 1.5% unlimited cash back. There is also no foreign transaction fee, but be aware of the $39 annual fee.

You can use this card to build your credit score by keeping your utilization low (ideally below 20%) and make your payments on time and in full every month. Capital One® provides free access to your FICO score so you can track your score and see when you are eligible for an upgrade to a no-fee card.

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  • No limit to the cash back you can earn
  • No confusing categories or limits
  • No annual fee or foreign transaction fee

Key Information

Credit Score Required : Average

Purchase Interest Rate : 24.99% (Variable)

Annual Fee : $39

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer Offer : None

BT Fee : None

Tip: Use this credit card to build your score and avoid expensive foreign transaction fees.

 

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on Capital One’s secure website

FULL REVIEW 

How to Use

In order to maximize your cash back, make sure you follow these suggestions:

  • Use your chosen cash back card for ALL of your spending. Your goal should be to replace cash, checks, automatic debits and debit cards completely. For example, you can automate bill payments (like your cell phone) to be debited from your credit card. This will make your life easier (only one payment to make each month) and it will make budgeting easier (you can set a target for spending and track it easily).
  • Set up automatic monthly payments for the statement balance, not the minimum due. If you set up automatic payments, you will ensure that your payment will be on time every month. And if you set up the automatic payment for the statement balance, you will ensure that you are never charged interest and only charge what you can afford to repay.
  • Avoid cash advances. If you use your credit card to take out cash, most companies will charge a cash advance fee that averages 3%. The interest rate on cash advances is usually above 20%. And there is no grace period, which means interest starts accruing right away.

Best Luxury Card

The Platinum Card® from American Express

Airline perks, entertainment benefits, rewards and more

The Platinum Card® from American Express

The Platinum Card® from American Express is the best overall luxury card on the market, offering numerous benefits for cardholders. To name a few perks, you can receive: up to $200 in annual savings on Uber rides, Preferred Seating for select entertainment events, access to the American Express Global Lounge Collection with over 1,000 airport lounges across 120 countries, a $200 Airline Fee Credit per calendar year in baggage fees and more at one qualifying airline, and numerous other benefits.

There is a rewards program great for frequent travelers — you get five Membership Rewards® points per dollar spent on flights booked directly with airlines or with American Express Travel and five Membership Rewards® points per dollar spent on eligible hotels booked on amextravel.com.

Transparency Score 14
Transparency Score
  • Good disclosure: they tell you what you need to know
  • Simple introductory bonus
  • High annual fee

Key Information

Credit Score Required : Excellent/Good

Annual Fee : $550

Sign-on Bonus : 60,000 Membership Rewards® points after you use your new Card to make $5,000 in purchases in your first 3 months.

Tip: To earn the most Membership Rewards® points, be sure to purchase flights directly with airlines or with American Express Travel and book hotel stays directly on amextravel.com.

 

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on American Express’s secure website

Terms Apply

Rates & Fees

Best Low Rate Cards

If you're someone who carries a balance month-to-month, a low rate credit card can be a great way for you to save money. Whether you want to complete a balance transfer, finance a large purchase, of simply have a low rate card in your wallet, there is a card for you. See below for our top picks.

How to Choose and Use a Low Rate Credit Card

When done properly, credit cards can be the cheapest way to borrow. Just make sure you choose the right credit card for your situation and automate a plan to pay off the debt as quickly as possible.

How to Choose

Best Balance Transfer Credit Cards

With a balance transfer credit card, you can transfer debt from a high interest rate credit card to a 0% introductory promotional rate. You can find no fee balance transfers for up to 15 months. If you are willing to pay a fee, you can find balance transfers for 18 or 21 months. The fee is usually worthwhile - if you want to do the calculation, you can use the calculator on our interactive tool.

Remember: You cannot transfer debt between two credit cards of the same bank.

Here are the best 0% balance transfer offers in the market today. All of these credit cards waive interest - which means there is no retroactive interest charge to worry about.

Chase Slate<sup>®</sup>

No Fee - introductory 0% on transfers for 15 months

Chase Slate®

With the Chase Slate® credit card you can enjoy an introductory balance transfer offer of 0% Intro APR on Balance Transfers for 15 months and pay an Intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater. The intro $0 transfer fee is a great way to save money when completing your transfer. In addition to the balance transfer offer, you pay 0% Intro APR on Balance Transfers for 15 months — great for those who want to pay off a large purchase over time without accruing interest.

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  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • Interest rate is not known until you apply.

Key Information

Credit Score Required : Excellent/Good

Purchase Interest Rate : 16.24% - 24.99% Variable APR

Annual Fee : $0

Sign-on Bonus : No bonus

Intro Purchase APR : 0% Intro APR on Purchases for 15 months; then 16.24% - 24.99% Variable APR

Intro Balance Transfer Offer : 0% Intro APR on Balance Transfers for 15 months; then 16.24% - 24.99% Variable APR

BT Fee : Intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater.

Tip: Compete your transfer within 60 days from account opening to take advantage of the intro $0 transfer fee.

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on Chase’s secure website

FULL REVIEW 

Citi Simplicity<sup>®</sup> Card - No Late Fees Ever

0% intro APR on transfers and purchases for 18 months; 3% balance transfer fee

Citi Simplicity® Card - No Late Fees Ever

Citibank has a strong intro balance transfer offer, with a long 18 months. In addition, the Citi Simplicity® Card - No Late Fees Ever has some added perks. There are no late fees, no penalty rate and no annual fee. Although you should always try to pay on time, it is nice that this card will not punish you for the occasional mistake. In addition to the balance transfer offer, you pay no interest on purchases for 18 months.

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  • No late fee, no penalty APR and no annual fee
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There is a range of interest rates. You won’t know yours until you apply.

Key Information

Credit Score Required : Good or Excellent

Purchase Interest Rate : 15.24% - 25.24% Variable

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : 0% for 18 months

Intro Balance Transfer Offer : 0% for 18 months

BT Fee : 3% or $5, whichever is greater

Tip: Make sure you transfer your balance within 4 months of opening the card, otherwise you lose the promotional offer.

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on Citibank’s secure website

FULL REVIEW 

Paying off credit card debt sometimes requires more than one balance transfer credit card. If you want even more choices, check out our full guide to the best balance transfer cards, or use our balance transfer calculator to see which cards will save you most.

Best 0% Purchase Credit Cards

With a 0% introductory purchase offer, you will not be charged interest for purchases made on the credit card during the promotional period. This is a great way to finance a purchase. Even better, none of these top cards charge retroactive interest if you don’t pay off the balance during the promotional period. (A lot of store credit cards offer 0%, but then hit you with a big penalty. But don’t worry - these recommendations don’t do that).

Citi<sup>®</sup> Diamond Preferred<sup>®</sup> Card– 21 Month Balance Transfer Offer

0% intro on Purchases for 21 Months

Citi® Diamond Preferred® Card– 21 Month Balance Transfer Offer

If you are looking to finance a purchase, Citibank offers the longest 0% intro purchase promotion of any credit card in the MagnifyMoney database. The intro APR on purchases will be 0% for the first 21 months after opening the credit card. This is a fantastic length of time for you to pay off your balance. Additionally, the Citi® Diamond Preferred® Card– 21 Month Balance Transfer Offer has a 0% intro APR on balance transfers for 21 months. There is also no annual fee and the ability to choose your payment due date from any available due date in the beginning, middle or end of the month.

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  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • Interest rate is not known until you apply.

Key Information

Credit Score Required : Good or Excellent

Purchase Interest Rate : 14.24% - 24.24%

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : 0% for 21 months

Intro Balance Transfer Offer : 0% for 21 months

BT Fee : 3% or $5, whichever is greater

Tip: The 21 months starts from when you open the credit card, not when you make the purchase. So make sure you time your application with your planned purchase.

APPLY NOW Secured

on Citibank’s secure website

FULL REVIEW 

TruWest Visa® Signature Card

0% Intro on Purchases for 18 Months - Credit Union Membership Required

TruWest Visa® Signature

TruWest is a credit union with restricted membership. Unfortunately, you need to live in certain regions of Texas or Arizona, or work for a few select employers to join. You can learn about membership eligibility here. If you are able to join, you will find a long 18-month 0% intro APR period. Even better, the credit card has reasonable credit union interest rates after the promotional period ends. There is no annual fee on the card.

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  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There is a range of interest rates. You won’t know yours until you apply.

Key Information

Credit Score Required : Good or Excellent

Purchase Interest Rate : 8.90% - 9.90%

Annual Fee : $0

Sign-on Bonus : Earn $100 when you spend $100 in the first 90 days of account opening.

Intro Purchase APR : 0% for 18 months

Intro Balance Transfer Offer : 0% for 18 months

BT Fee : 3%

Tip: Make sure you check your membership eligibility before you apply.

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on TruWest Credit Union’s secure website

Best Low Interest Credit Cards

Having a credit card with a rate that stays low is a good idea. In case of an emergency, you will always have access to a low cost way to borrow. Here are some great low interest rate options:

Langley Select Visa Platinum Card from Langley FCU

As Low as 8.00% APR from a Credit Union Anyone Can Join

Langley Select Visa® Platinum

Anyone can join Langley Federal Credit Union by joining an association during the signup process for $5. If you have excellent credit and just want a place for emergency spending with no rewards, consider keeping this card on hand. Although the rates start as low as 8.00% Variable, not everyone will get a rate that low. It’s more of a hassle than a regular bank card, but if you insist on the very lowest rate you may get it with this card.

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Transparency Score
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There is a range of interest rates. You won’t know yours until you apply.
  • You have to join the credit union.

Key Information

Credit Score Required : Excellent

Purchase Interest Rate : as low as 8.00% Variable

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer Offer : None

BT Fee : None

Tip: You need to have an excellent credit score in order to qualify for the lowest interest rate.

APPLY NOW Secured

on Langley Federal Credit Union’s secure website

You might get a lower rate from a credit union or bank near you that doesn’t accept nationwide applications, and you can check our full list of low interest credit cards to see if there is one that works for you.

How to Use

If you need to borrow money, credit cards can be an incredibly low cost way of borrowing. Just make sure you pay attention to the following tips:

  • Get that balance transfer done quickly! If you are transferring a balance, make sure you complete the transfer as soon as possible. The introductory offer starts from when you open the card, not when the transfer is completed. And you can lose the offer with most issuers if you wait more than 60 days to complete the transfer.
  • Automate your monthly payments. If you pay late, you can be charged a costly late fee. And, if your payment is 60 days late, you can lose the introductory offer entirely.
  • You cannot transfer debt between two cards of the same bank. For example, if you open a Citibank account you will only be able to transfer debt from credit cards other than Citibank.

Best Cards to Help Build or Rebuild Your Credit Score

If you're someone who is new to credit or has poor credit history, there are credit cards designed for you. These cards are a great way to begin your credit journey, or to improve your credit score. See below for our top picks.

How to Choose and Use a Credit Card to Build or Rebuild Your Score

If you are looking to build or rebuild your credit score, a credit card can be the perfect tool.

How to Choose

If you have no credit, or your credit score is below 620, you should consider a secured credit card.

If you have limited credit history (less than three years) or you have only defaulted once on a credit card or loan (not multiple times), you should consider a credit card for fair credit.

Best Secured Credit Cards if You Have Bad or No Credit

Secured credit cards are the best option if you need to build or rebuild your credit score. The best secured credit cards have no annual fees. If you’re going to use a secured credit card, it will help you grow your score if you pay your balance on time every month, keep your credit utilization low, and you apply for an unsecured credit card after 12-18 months of regular use.

Need to know more? These are ways that you can build your credit without paying interest and spending just $10 a month, and these are tips for improving your credit score.

Discover it<sup>®</sup> Secured Card - No Annual Fee

No Annual Fee Secured Card with Free FICO Score; $200 Deposit Required

Discover it® Secured Card - No Annual Fee

This is our favorite secured credit card. There is a $0 annual fee and you will get free access to your credit score. In order to open the card, you will need to deposit at least $200, depending upon your creditworthiness. If you have previously filed bankruptcy, you still have the chance to be approved. With this secured credit card, you will earn 2% cash back at restaurants or gas stations (on up to $1,000 in combined purchases each quarter) and 1% cash back on all other purchases.

Our favorite part of this card is the automatic monthly reviews starting at 8 months to see if you can be transitioned to an unsecured card. If you qualify, you will be graduated (and get your deposit back).

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  • No annual fee
  • Free FICO credit score

Key Information

Credit Score Required : Please refer to issuer's website

Purchase Interest Rate : 24.24% Variable APR

Annual Fee : $0

Sign-on Bonus : Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically (new cardmembers only).

Intro Purchase APR : None

Intro Balance Transfer Offer : 10.99% for 6 months

BT Fee : 3%

Tip: This product reports to all three credit bureaus. It is a great tool to build your score. But, if you miss payments, you can do damage to your score.

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

FULL REVIEW 

Rate Advantage Secured Visa by Coastal FCU

No Fee Secured Card; Credit Union Membership and $100 Deposit Required

Rate Advantage Secured Visa

This card has no annual fee, and you only need to deposit $100 in a Collateral Savings Account to get started. If you’re not a member of Coastal Credit Union, you can join an organization for $18, which is deducted from your initial deposit, and become a member. So you’ll need $118 to get started. While the initial deposit is lower than the Discover it® Secured Card - No Annual Fee, you lose out on the rewards. This card takes more work to open, since it involves joining a credit union, but anyone can apply.

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  • A single interest rate that you know up front, before you apply
  • You have to join a credit union

Key Information

Credit Score Required : Anyone can apply

Purchase Interest Rate : as low as 16.25% Variable

Annual Fee : $0

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer Offer : None

BT Fee : 3% or $5, whichever is greater

Tip: It is easy to join the credit union. Join an organization for $18 and you will become eligible.

APPLY NOW Secured

on Coastal Federal Credit Union’s secure website

We also have a list of several other no annual fee secured credit cards from both banks and credit unions anyone can join. Or browse our list of hundreds of secured cards to compare rates, fees, and deposit requirements.

Best Credit Cards if You Have Fair Credit

If you have fair or average credit, you might be able to qualify for an unsecured credit card. If you have more than one default in the last five years, you will find it difficult to get approved. In addition, if you are currently delinquent on any of your accounts it will also be hard to get approved, and you should try a secured card instead.

Here are some good cards for people with fair credit:

Capital One® QuicksilverOne® Cash Rewards Credit Card

1.5% Cash Back for People with Average Credit - with $39 Annual Fee

Capital One® QuicksilverOne® Cash Rewards Credit Card

Capital One® has created a credit card specifically for people with average credit. If you have defaulted on a loan (but not more than one) in the last five years, or you have limited credit history (at least one account for less than three years), you would meet the definition of average credit. With this card, you will earn unlimited 1.5% cash back on every purchase with no limit on how much you can earn, and no changing categories.

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  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There is an annual fee

Key Information

Credit Score Required : Average

Purchase Interest Rate : 24.99% Variable

Annual Fee : $39

Sign-on Bonus : None

Intro Purchase APR : None

Intro Balance Transfer Offer : None

BT Fee : None

Tip: Watch your credit score closely. As you pay down your debt, your score will improve. Once your score is above 700, you can find a lot of choices for credit cards with better rewards or no annual fee.

APPLY NOW Secured

on Capital One’s secure website

FULL REVIEW 

You may also want to try and see if you are pre-qualified for a credit card before applying. Banks can perform a ‘soft’ pull on your credit file to give you a sense of whether you might qualify for one of their products. It leaves no mark on your credit score, and you can see a full list of ways to check if you’re pre-qualified here.

How to Use It

In order to build your credit score with one of these cards, you should follow our tips. By doing this, you should see real improvement in your score.

  • Don’t use more than 10% - 20% of your available credit. For example, if you have a $500 credit limit, never spend more than $50. That keeps your utilization low.
  • Use your card every single month. You should make sure you have a transaction every month, so that positive data is reported to the credit bureaus.
  • Automate and pay your statement balance in full and on time every month. Even just one late payment could crush your score. And by paying the balance in full, you will avoid any interest expense.
  • Watch your score closely. Keep an eye on your credit score. After 12 months, you should really start to see a big improvement. Once your score is above 650, you should try to get your secured card converted or apply for an unsecured credit card.

A Special Note: Beware Predatory Companies

Many lenders target consumers with FICO credit scores of less than 650. If you have searched for “credit cards for bad credit,” you will probably find offers from companies like First Premier. In addition to high interest rates, these lenders often require application processing fees, maintenance fees and more. You could be given a $300 credit limit and see a big portion of it eaten up with fees.

Stay away from these specialist subprime lenders. Instead, consider the following:

  • If you need to borrow, consider a personal loan instead. You can find much better deals. Search for options here.
  • If you want to build your credit score, use a secured credit card instead.

Other Benefits of Using a Credit Card

Not only can you use a credit card to earn rewards, borrow at low rates or build your credit score for free - but there are many other benefits available. Here are some of the benefits that you can find:

Available on Most Credit Cards

  • $0 Liability on Fraudulent Activity: Credit cards are the best way to protect yourself from fraud. So long as you report the fraud to your credit card company, you will not be liable for any losses on any major credit card.
  • Car Rental Collision Insurance: If you waive collision coverage when renting a car, your credit card may provide secondary coverage of $50K or more.

Available on Some Credit Cards

  • Retail Purchase Protection: Protects you from loss, theft, fire or accidental damage for a limited period of time after your purchase has been made. Not all cards protect you from loss, so look it up in the Purchase Protection Coverage Description Document.
  • Price Protection: If you buy something in stores and you see an advertised price, you will receive the difference between the two prices.
  • Extended Warranties: Duplicates both manufacturers and store warranties for a limited length of time and for limited dollar values (varies by card).
  • Travel Accident Coverage: If you are injured during travel, and you purchased the tickets via credit card, your company fully insures you.
  • Lost Luggage Coverage: You can receive compensation for lost, stolen or damaged luggage if you purchased flight or travel tickets using your credit card.
  • Trip Interruption Cancellation Coverage: If travel delays keep you from completing a trip, and you purchased the tickets on your credit card, the full value of the tickets will be refunded
  • Concierge Services: Certain cards offer free access to local concierge services that can help you make dinner reservations, purchase event tickets, and locate items while you are abroad.

Should You Get a Credit Card?

Credit cards are like knives. Used well, they are great (even essential) tools. But if you start playing with them, you can get into trouble quickly.

There are two big risks associated with swiping plastic:

  • You spend more than you should, because it is just too easy
  • You pay higher interest rates than you should, adding years to your debt repayment

Before using a credit card, you need to answer the following question honestly:

Do I trust myself with plastic? Can I exhibit the necessary self-control to spend only what I can afford to pay in full every month?

If you have the discipline and self-control, keep reading and we will help you find the best credit card for your needs. But, if you don’t, it is possible to live a long and fulfilling life without plastic cards in your pocket.

Which type of card is best for you?

Why do you want a credit card? The answer to that question will determine which type of card is best for you.

Just remember this critical rule when selecting a credit card:

You should have a Rewards Card for your spending. You should have a Low Rate Card for your borrowing. But you should avoid mixing the two. The best Rewards Cards tend to have higher interest rates. And the best Low Rate Cards often have no (or bad) rewards.

FAQ

The minimum payment calculation differs by credit card issuer. The most common is 1% of the principal balance plus any interest or fees that accrued in the month (or a set amount, like $25, if the minimum due is very low).

If you use your credit card at an ATM to take out cash, a few things will happen. First, you would be charged a cash advance fee, which is usually about 3%. Second, interest would start accruing immediately, because most issuers do not have a cash advance grace period. And the cash advance interest rate is usually much higher than the purchase rate. Don’t be surprised to see interest rates as high as 24% (or higher).

While there is no over-limit fee, having a credit card with a balance that is greater than the credit limit can have a very negative impact on your credit score. In general, you want to keep your credit card balance below 20% (ideally below 10%) of your credit limit.

We do not recommend closing credit cards, because it can reduce your credit score. Closing unused credit cards does two things. First, it reduces your total available credit. That increases your utilization, which is bad for your score. Second, the age of your open credit cards helps your score. If you close old accounts, you can hurt your score over time.

The law requires that any payment amount beyond the minimum due must be applied to the highest APR balance first. The minimum due is at the discretion of the credit card companies. However, it is usually applied to the balance with the lowest APR first. Your goal is to eliminate high APR debt - so don’t be afraid to make much bigger payments on credit cards. The extra amount will always go to the most expensive debt first.

Each application for new credit can take 5-10 points off your credit score. If you are planning on applying for a mortgage or auto loan in the near future, you have to be very careful. Even just 5 points can be painful. However, if you are not going to be applying for a mortgage or auto loan in the next 6-12 months, you should not worry too much about your credit score. Instead, focus on getting out of debt quickly.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Nick Clements
Nick Clements |

Nick Clements is a writer at MagnifyMoney. You can email Nick at nick@magnifymoney.com

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Balance Transfer, Best of, Pay Down My Debt

9 Best 0% APR Credit Card Offers – February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

There are a lot of 0% APR credit card deals in your mailbox and online, but most of them slap you with a 3 to 4% fee just to make a transfer, and that can seriously eat into your savings.

At MagnifyMoney we like to find deals no one else is showing, and we've searched hundreds of balance transfer credit card offers to find the banks and credit unions that ANYONE CAN JOIN which offer great 0% interest credit card deals AND no balance transfer fees. We've hand-picked them here.

If one 0% APR credit card doesn't give you a big enough credit line you can try another bank or credit union for the rest of your debt. With several no fee options it's not hard to avoid transfer fees even if you have a large balance to deal with.

1. The Amex EveryDay® Credit Card from American Express - 0% Introductory APR for 15 months, $0 Balance Transfer FEE

The Amex EveryDay® Credit Card from American Express

APPLY NOW Secured

on American Express’s secure website

Terms Apply

Rates & Fees


This offer is a new addition to the list and edges out competitors with the longest 0% intro period and standout perks. The Amex EveryDay® Credit Card from American Express has increased value with an intro 0% for 15 Months on purchases and balance transfers, then 14.24%-25.24% Variable APR and a $0 balance transfer fee. (For transfers requested within 60 days of account opening.) In addition to the great balance transfer offer, you can earn rewards — 2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x), 1x points on other purchases.

2. Chase Slate® - 0% Intro APR on Purchases for 15 months, $0 Introductory Balance Transfer FEE

Chase Slate<sup>®</sup>

APPLY NOW Secured

on Chase’s secure website

This deal is easy to find - Chase is one of the biggest banks and makes this credit card deal well known. Save with an Intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater. You also get a 0% Intro APR on Purchases for 15 months on purchases and balance transfers, and $0 annual fee. After the intro period, the APR is currently 16.24% - 24.99% Variable. Plus, see monthly updates to your FICO® Score and the reasons behind your score for free.

You can get this offer if you complete the balance transfer within 60 days of opening the account. So it's worth a shot to see how big of a credit line you get. If it's not enough, move on to the other options below.

3. BankAmericard® Credit Card - 0% Introductory APR for 15 billing cycles, $0 Introductory Balance Transfer FEE

BankAmericard® Credit Card

APPLY NOW Secured

on Bank Of America’s secure website

This card is available if you have excellent credit. There is a $0 intro balance transfer fee if you complete the transfer within 60 days of opening your account.

Bank of America has just recently launched a balance transfer with no intro balance transfer fee. Credit card debt on an existing Bank of America credit card is not eligible for this offer.

Tip: The remaining no fee cards on this list are deals for 12 months or less. You might be better off paying a standard 3% balance transfer fee for a longer deal, like 0% for 18 months from the Discover it® - 18 Month Balance Transfer Offer, one of the better deals with a balance transfer fee of 3%. If you're trying to transfer from Chase, consider a deal from Bank of America with $0 transfer terms.

4. Alliant Credit Union Credit Cards - 0% Introductory APR for 12 months, NO FEE

Visa<sup>®</sup> Platinum Card from Alliant CU

APPLY NOW Secured

on Alliant Credit Union’s secure website

Alliant is an easy credit union to work with because you don't have to be a member to apply and find out if you qualify for the 0% Introductory APR deal (after the introductory period, a low standard variable APR applies, ranging from 10.49%–22.49%).

Just choose 'Apply as New Member' when you apply and if you are approved you'll then be able to become a member of the credit union to finish opening your account.

Anyone can become a member of Alliant by making a $10 donation to Foster Care to Success.

If your credit isn't great, you might not get a 0% intro rate - rates for transfers are as high as 5.99%, so make sure you double check the rate you receive before opening the account, and they might ask for additional documents like your pay stubs to verify the information on your application.

5. Wings Financial Credit Union - 0% Intro APR for 12 months, NO FEE

Wings Financial Visa Platinum Card

APPLY NOW Secured

on Wings Financial Credit Union’s secure website

Anyone can join Wings Financial Credit Union by becoming a member of the Wings Financial Foundation with a $5 donation. WFCU offers 0% intro APR for 12 months on balance transfers and purchases with no balance transfer fee for both their Wings Financial Visa Signature Card and Wings Financial Visa Platinum Card. The Wings Financial Visa Signature Card has a regular purchase APR as low as 13.95% - 18.00% variable and the Wings Financial Visa Platinum Card is as low as 7.90% - 17.70% variable APR. An added benefit of the Wings Financial Visa Signature Card is 1% cash back rewards with 2% for first 3 months.

6. Edward Jones World MasterCard - 0% Intro APR for 12 months on Balance Transfers through 4/30/2018, NO FEE

Edward Jones World MasterCard<sup>®</sup>

APPLY NOW Secured

on Edward Jones’s secure website

You'll need to go to an Edward Jones branch to open up an account first if you want this deal. Edward Jones is an investment advisory company, so they'll want to have a conversation about your retirement needs. But you don't need to have money in stocks to be a customer of Edward Jones and try to get this card. Just beware that you only have 60 days to complete your transfer to lock in the 0% introductory rate. This deal expires 4/30/2018.

7. First Tech Choice Rewards - 0% Intro APR on Balance Transfers for 12 months, NO FEE

Choice Rewards World MasterCard® from First Tech FCU

APPLY NOW Secured

on First Technology Federal Credit Union’s secure website

Anyone can join First Tech Federal Credit Union by becoming a member of the Financial Fitness Association for $8, or the Computer History Museum for $15. You can apply for the card without joining first. This introductory 0% for 12 months on balance transfers and no transfer fee on balances transferred within first 90 days of account opening is for the First Tech Choice Rewards World MasterCard. You also get 20,000 Rewards Points after you spend $3,000 on the card in your first 2 months.

8. La Capitol Federal Credit Union - 0% Intro APR on Balance Transfers for 12 months, NO FEE

Visa Rewards Card from La Capitol FCU

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on La Capitol Federal’s secure website

Anyone can join La Capitol Federal Credit Union by becoming a member of the Louisiana Association for Personal Financial Achievement, which costs $20. Just indicate that's how you want to be eligible when you apply for the card - no need to join before you apply. And La Capitol accepts members from all across the country, so you don't have to live in Louisiana to take advantage of this deal on the Prime Plus card. The introductory 0% for 12 months on balance transfers applies to balances transferred within first 90 days of account opening.

9. Purdue Federal Credit Union - 0% Intro APR for 12 months, NO FEE

Visa Signature Credit Card from Purdue FCU

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on Purdue FCU’s secure website

This deal is only for their Visa Signature card - other cards have a higher intro rate. The Purdue Federal Credit Union doesn't have open membership, but one way to be eligible for credit union membership is to join the Purdue University Alumni Association as a Friend of the University.

Anyone can join the association, but it costs $50. The good news is you can apply and get a decision before you become a member of the Alumni Association.

10. Logix Credit Union Credit Card - 0% APR for 12 months , NO FEE

The Logix Platinum MasterCard

APPLY NOW Secured

on Logix Federal Credit Union’s secure website

Although this card isn't available for everyone, it can be a good choice if you live in AZ, CA, DC, MA, MD, ME, NH, NV, or VA. Residence in those states allows you to join Logix Credit Union and apply for this deal. Some applicants have reported credit lines of $15,000 or more for balance transfers, so if you have excellent credit, good income, but a large amount to pay off (like a home equity line), this could be a good option. You must transfer your balance within the first 90 days your credit card account is open qualify for the intro 0% APR for up to 12 months.

11. Navy Federal Credit Card - 0% Intro APR on Balance Transfers for 12 months through 2/28/2018, NO FEE

Platinum Card from Navy Federal Credit Union

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on Navy Federal Credit Union’s secure website

This is a limited time offer valid through 2/28/2018. Balance transfers made before the end of February can receive a 0% intro APR for 12 months. After that, a variable APR between 7.24% and 18.00% applies. This card isn’t available to everyone and you need to be affiliated with the Armed Forces, DoD, Coast Guard or National Guard. Click here for more details on eligibility.

12. Premier America Credit Union - 0% Intro APR for 6 months, NO FEE

Premier Privileges Rewards MasterCard<sup>®</sup> from Premier America CU

APPLY NOW Secured

on Premier America’s secure website

Premier America is unique because it has a Student Mastercard® that's eligible for the balance transfer deal, though limits on that card are $500 - $2,000. There's also a card for those with no credit history - the Premier First Rewards Privileges®, with limits of $1,000 - $2,000. If you're looking for a bigger line, the Premier Privileges Rewards Mastercard® is available with limits up to $50,000.

Anyone can join Premier America by becoming a member of the Alliance for the Arts. You can select that option when you apply.

Other 0% Intro APR cards to consider

13. Money One Credit Union - 0% Intro APR for 6 months, NO FEE

Visa Platinum Card from Money One FCU

APPLY NOW Secured

on Money One Federal’s secure website

Anyone can join Money One Federal by making a $20 donation to Gifts of Easter Seals. And you can apply without being a member. You'll see a drop down option during the application process that lets you select Gifts of Easter Seals as the way you plan to become a member of the credit union. Credit lines for the Visa Platinum card are as high as $25,000.

14. Andigo Credit Union - 0% Intro APR for 6 months, NO FEE

Visa Platinum Card from andigo

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on Andigo’s secure website

You'll have a choice to apply for the Andigo Visa Platinum or Visa Platinum Rewards. The Visa Platinum Cash Back card doesn't have this deal. The Visa Platinum without rewards has a lower ongoing APR, starting as low as 10.99%, compared to 12.90% for the Visa Platinum Rewards card, so if you're not sure you'll pay it all off in 6 months the Platinum without rewards is a better bet.

Anyone can join Andigo by making a donation to Connect Vets for $15, and you can submit an application for the card without being a member yet.

15. Evansville Teachers Credit Union - 0% Intro APR for first 6 months on Balance Transfers, NO FEE

ETFCU's Platinum Rewards Credit Card

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on Evansville Teachers Federal Credit Union’s secure website

You don't need to be a teacher to join this credit union. Just make a $5 donation to Mater Dei Friends & Alumni Association. The Prime Plus has an ongoing rate as low as 7.25% variable, so you can enjoy a low rate even after the intro deal ends.

16. Elements Financial Credit Card - 0% Intro APR for 6 months on Purchases and Balance Transfers, NO FEE

Elements Financial Platinum Visa® Credit Card

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on ELFCU’s secure website

To become a member and apply, you'll just need to join TruDirection, a financial literacy organization. It costs just $5 and you can join as part of the application process. The ongoing rate is 10.24% variable which is lower than typical cards.

17. Justice Federal Credit Union - 0% Intro APR for 6 months on Purchases, Balance Transfers, and Cash Advances, NO FEE

Student VISA<sup>®</sup> Rewards Credit Card from Justice FCU

APPLY NOW Secured

on Justice Federal’s secure website

If you're not a Department of Justice, Homeland Security, or U.S. court employee (or a few others), you need to join a law enforcement organization to be a member of Justice Federal. One of the eligible associations for membership is the National Native American Law Enforcement Association. It costs $15 to join.

You can apply as a non-member online to get a decision before joining. And Justice is unique in that its Student credit card is also eligible for the 0% introductory rate on purchases, balance transfers, and cash advances, so if your credit history is limited and you're trying to deal with a balance on your very first card, this could be an option.

18. XCEL Platinum Visa - 0% Intro APR for 6 months, NO FEE

XCEL’s Platinum VISA® Credit Card

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on Xcel Federal’s secure website

Anyone can join Xcel by becoming a member of the American Consumer Council, and you can apply for the card as a non-member of the credit union, but not everyone who is approved for the card will get the low intro rate. Xcel advises you contact them to get as sense of whether your income, credit history, and employment history will qualify for the intro rate.

19. Michigan State University Federal Platinum Visa - 0% Intro APR for 6 months, NO FEE

Platinum Visa Card from Michigan State FCU

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on Michigan State University Federal Credit Union’s secure website

There is the option to apply for the Platinum Plus Visa or the Platinum Visa. The Platinum Visa has a lower ongoing APR starting as low as 8.9%, compared to the 12.9% for the Platinum Plus which can earn you rewards. Anyone can join the Michigan State University Federal Credit Union by first becoming a member of the Michigan United Conservation Clubs. However, this comes at a high fee of $30 for one year.

Are these the best deals for you?

If you can pay off your debt within the 0% period, then yes, a no fee 0% balance transfer credit card is your absolute best bet. And if you can't, you can hope that other 0% deals will be around to switch again.

But if you're unsure, you might want to consider...

  • A deal that has a longer period before the rate goes up. In that case, a balance transfer fee could be worth it to lock in a 0% rate for longer.
  • Or, a card with a rate a little above 0% that could lock you into a low rate even longer.

The good news is we can figure it out for you.

Our handy, free balance transfer tool lets you input how much debt you have, and how much of a monthly payment you can afford. It will run the numbers to show you which offers will save you the most for the longest period of time.

promo balancetransfer wide

The savings from just one balance transfer can be substantial.

Let's say you have $5,000 in credit card debt, you're paying 18% in interest, and can afford to pay $200 a month on it. Here's what you can save with a 0% deal:

  • 18%: It will take 32 months to pay off, with $1,312 in interest paid.
  • 0% for 12 months: You'll pay it off in 28 months, with just $502 in interest, saving you $810 in cash. That even assumes your rate goes back up to 18% after 12 months!

But your rate doesn't have to go up after 12 months. If you pay everything on time and maintain good credit, there's a great chance you'll be able to shop around and find another bank willing to offer you 0% interest again, letting you pay it off even faster.

Before you do any balance transfer though, make sure you follow these 6 golden rules of balance transfer success:

  • Never use the card for spending. You are only ready to do a balance transfer once you've gotten your budget in order and are no longer spending more than you earn. This card should never be used for new purchases, as it's possible you'll get charged a higher rate on those purchases.
  • Have a plan for the end of the promotional period. Make sure you set a reminder on your phone calendar about a month or so before your promotional period ends so you can shop around for a low rate from another bank.
  • Don't try to transfer debt between two cards of the same bank. It won't work. Balance transfer deals are meant to 'steal' your balance from a competing bank, not lower your rate from the same bank. So if you have a Chase Freedom® with a high rate, don't apply for another Chase card like a Chase Slate® and expect you can transfer the balance. Apply for one from another bank.
  • Get that transfer done within 60 days. Otherwise your promotional deal may expire unused.
  • Never use a card at an ATM. You should never use the card for spending, and getting cash is incredibly expensive. Just don't do it with this or any credit card.
  • Always pay on time. If you pay more than 30 days late your credit will be hurt, your rate may go up, and you may find it harder to find good deals in the future. Only do balance transfers if you're ready to pay at least the minimum due on time, every time.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Nick Clements
Nick Clements |

Nick Clements is a writer at MagnifyMoney. You can email Nick at nick@magnifymoney.com

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Advertiser Disclosure

Balance Transfer, Best of, Pay Down My Debt

Best balance transfer credit cards: 0% APR, 24 months

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities. This site may be compensated through a credit card partnership.

btgraphic

Looking for a balance transfer credit card to help pay down your debt more quickly? We’re constantly checking for new offers and have selected the best deals from our database of over 3,000 credit cards. This guide will show you the longest offers with the lowest rates, and help you manage the transfer responsibly. It will also help you understand whether you should be considering a transfer at all.

 

1. Best balance transfer deals

No intro fee, 0% intro APR balance transfers

Very few things in life are free. But, if you pay off your debt using a no fee, 0% APR balance transfer, you can crush your credit card debt without paying a dime to the bank. You can find a full list of no fee balance transfers here.

The Amex EveryDay® Credit Card from American Express

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on American Express’s secure website

Terms Apply

Rates & Fees

Read Full Review

Annual fee

$0

Intro Purchase APR

0% for 15 Months

Intro BT APR

0% for 15 Months

Balance Transfer Fee

$0 balance transfer fee.

Regular Purchase APR

14.24%-25.24% Variable

Rewards Rate

2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x), 1x points on other purchases.


There’s a new offer for the The Amex EveryDay® Credit Card from American Express that includes an extended intro period now at an intro 0% for 15 Months on balance transfers and purchases (14.24%-25.24% Variable APR after the promo period ends) and a $0 balance transfer fee. (For transfers requested within 60 days of account opening.) This offer is in direct competition with other $0 intro balance transfer fee cards like Chase Slate®. 

In addition to the intro periods, you can benefit from a rewards program tailored to U.S. supermarket spenders where you earn 2x points at US supermarkets, on up to $6,000 per year in purchases (then 1x), 1x points on other purchases.

 

The intro offers, coupled with the rewards program make The Amex EveryDay® Credit Card from American Express the frontrunner among balance transfer cards, outpacing competitors. This card presents cardholders with the unique opportunity to transfer a balance and make a large purchase during the intro period, all while earning rewards on new purchases. To qualify for this card, you need Excellent/Good credit.

 

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  • Simple Welcome Offer
  • The 2-point bonus on grocery store spending is capped
  • You need 20 transactions each month to get the the 20% bonus

 

Read our full review of the The Amex EveryDay® Credit Card from American Express here.

 

Chase Slate<sup>®</sup>

15 month 0% intro APR with $0 intro transfer fee

Chase Slate® - 0% Intro APR on Purchases for 15 months, $0 Introductory BT Fee

With Chase Slate® you can save with a Intro $0 on transfers made within 60 days of account opening. After that: Either $5 or 5%, whichever is greater. You can also save with a 0% Intro APR on Purchases for 15 months and a 0% Intro APR on Balance Transfers for 15 months, and $0 annual fee. Plus, see monthly updates to your FICO® Score and the reasons behind your score for free.

You can get longer transfer periods by paying a fee (either $5 or 5% of the amount of each transfer, whichever is greater), so this deal is generally best if you have a balance you know you‘ll pay in full by the end of the promotional period. And don’t expect a huge credit line with this card, so it may be best for smaller balances you can take care of quickly.

Also keep in mind you can't transfer a balance from one Chase card to another, so this is good if the balance you want to move is from a bank or credit union that's not Chase.

Transparency Score
Transparency Score
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There are late payment and cash advance fees

Tip: You have only 60 days from account opening to complete your balance transfer and get the introductory rate.

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on Chase’s secure website

BankAmericard® Credit Card

Long 0% intro APR with no intro balance transfer fee
(For Excellent credit)

BankAmericard® Credit Card - 0% Intro APR for 15 billing cycles, $0 Intro BT Fee

There is an introductory 0% APR for your first 15 billing cycles for purchases and for any balance transfers made within 60 days of opening your account. After that, a Variable APR that's currently 13.24% to 23.24% will apply.

You need excellent credit to get this card and you can only transfer debt that is not already at Bank of America.

You can get longer transfer periods by paying a fee, so this deal is generally best if you have a balance you know you'll pay in full by the end of the 15 month promotional period.

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Transparency Score
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • No penalty APR - paying late won't automatically raise your rate (APR)
  • There are late payment and cash advance fees

Tip: You can provide the account number for the account you want to transfer from while you apply, and if approved, the bank will handle the transfer.

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on Bank Of America’s secure website

0% balance transfers with a fee

If you think it will take longer than 15 months to pay off your credit card debt, these credit cards could be right for you. Don’t let the balance transfer fee scare you. It is almost always better to pay the fee than to pay a high interest rate on your existing credit card. You can calculate your savings (including the cost of the fee) at our balance transfer marketplace.

These deals listed below are the longest balance transfers we have in our database. We have listed them by number of months at 0%. Although you need good credit to be approved, don’t be discouraged if one lender rejects you. Each credit card company has their own criteria, and you might still be approved by one of the companies listed below.

Discover it<sup>®</sup> - 18 Month Balance Transfer Offer

Decent 0% intro balance transfer period

Discover it® - 18 Month Balance Transfer Offer: Intro APR of 0% for 18 months, 3% BT fee.

This is a basic balance transfer deal with an above average term. If you don’t have credit card balances with Discover, it’s a good option to free up your accounts with other banks. With this card, you also have the ability to earn cash back, and there is no late fee for your first missed payment and no penalty APR. Hopefully you will not need to take advantage of these features, but they are nice to have.

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Transparency Score
  • Interest is waived during the balance transfer period, no foreign transaction fees and no late fee for your first late payment
  • The range of the purchase interest rate based on your credit history.  The 13.24% - 24.24% Variable APR is fairly standard.
  • There is a cash advance fee

Tip: Complete your balance transfer as quickly as possible for maximum savings.

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on Discover Bank’s secure website

Rates & Fees

Citi<sup>®</sup> Diamond Preferred<sup>®</sup> Card– 21 Month Balance Transfer Offer

Longest 0% intro balance transfer card

Citi® Diamond Preferred® Card– 21 Month Balance Transfer Offer: 0% intro for 21 months, 3% balance transfer fee

The Citi® Diamond Preferred® Card– 21 Month Balance Transfer Offer offers the longest intro period on our list at intro 0% for 21 months on balance transfers made within 4 months from account opening. There is also an intro 0% for 12 months on purchases. After the intro periods end, a 14.24% - 24.24% variable APR applies. The balance transfer fee is typical at 3% of each balance transfer; $5 minimum. This provides plenty of time for you to pay off your debt. There are several other perks that make this card great: no annual fee, Citi® Private Pass®, and Citi® Concierge.

Transparency Score
TRANSPARENCY SCORE
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • Interest rate is not known until you apply.

Tip: Complete your balance transfer within four months from account opening to take advantage of the 0% intro offer.

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on Citibank’s secure website

Low rate balance transfers

If you think it will take longer than 2 years to pay off your credit card debt, you might want to consider one of these offers. Rather than pay a balance transfer fee and receive a promotional 0% APR, these credit cards offer a low interest rate for much longer.

The longest offer can give you a low rate that only goes up if the prime rate goes up. If you can’t get that offer, there is another good option offering a low rate for three years.

Variable Rate Credit Card from UNIFY Financial CU

Longest low rate balance transfer card

Unify Financial Credit Union - As low as 5.99% APR, no expiration, no BT fee

If you need a long time to pay off at a reasonable rate, and have great credit, it’s hard to beat this deal from Unify Financial Credit Union, with a rate as low as 5.99% with no expiration. The rate is variable, but it only varies with the Prime Rate, so it won't fluctuate much more than say a variable rate mortgage. There is also no balance transfer fee.

Just about anyone can join Unify Financial Credit Union. They'll help you figure out what organization you can join to qualify, and you don't need to be a member to apply.

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Transparency Score
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • There are late payment fees.

Tip: If you're credit's not great, this probably isn't for you, as the rate chosen for your account could be as high as 18%.

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on UNIFY Financial Credit Union’s secure website

Prime Rewards Credit Card from SunTrust Bank

Long low rate balance transfer card

SunTrust Prime Rewards - 4.25% variable APR for 36 months, $0 intro BT fee

If you live in Alabama, Arkansas, Florida, Georgia, Maryland, Mississippi, North Carolina, South Carolina, Tennessee, Virginia, Washington, D.C., or West Virginia you can apply for this card without a SunTrust bank account.

The deal is you get the prime rate for 3 years with no intro balance transfer fee. That’s currently 4.25% variable, though your rate will change if the prime rate changes, either up or down, and you have 60 days to complete your transfer with no fee. After that, it's $10 or 3% of the amount of the transfer, whichever is greater. Also beware the prime rate deal isn't for new purchases, so only use this card for a balance transfer.

Transparency Score
Transparency Score
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • The range of the purchase interest rate based on your credit history (12.24% - 22.24%) is more than 10%, which is high.
  • There are late payment and cash advance fees.

Tip: You have only 60 days from account opening to get the intro $0 transfer fee.

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on SunTrust Bank’s secure website

For fair credit scores

In order to be approved for the best balance transfer credit cards and offers, you generally need to have good or excellent credit. If your FICO score is above 650, you have a good chance of being approved. If your score is above 700, you have an excellent chance.

However, if your score is less than perfect, you still have options. Your best option might be a personal loan. You can learn more about personal loans for bad credit here.

There are balance transfers available for people with scores below 650. The offer below might be available to people with lower credit scores. There is a transfer fee, and it's not as long as some of the others available with excellent credit. However, it will still be better than a standard interest rate.

Just remember: one of the biggest factors in your credit score is your amount of debt and credit utilization. If you use this offer to pay down debt aggressively, you should see your score improve over time and you will be able to qualify for even better offers.

MasterCard Platinum from Aspire FCU

For less than perfect credit

Aspire Credit Union Platinum - 0% intro APR for 6 months, 0% intro BT fee

Balance transfer deals can be hard to come by if your credit isn’t great. But some banks are more open to it than others, and Aspire Credit Union is one of them, saying 'fair' or 'good' credit is needed for this card. Anyone can join Aspire, but if you're looking for a longer deal you also might want to check if you're pre-qualified for deals from other banks, without a hit to your credit score, using the list of options here.

You'll be able to check with several banks what cards are pre-screened based on your credit profile, and you might be surprised to see some good deals you didn't think were in your range. That way you can apply with more confidence.

Transparency Score
Transparency Score
  • Interest is not deferred during the balance transfer period, which means if you do not pay off your balance by the end of the promo period, you will not be charged the interest that would have accrued during the deferral period.
  • The ongoing interest rate isn't known when you apply.

Tip: Only Aspire's Platinum MasterCard has this deal. Its Platinum Rewards MasterCard doesn't have a 0% offer. And if you transfer a balance after 6 months a 2% fee will apply.

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on Aspire Federal Credit Union’s secure website

2. Learn more

Checklist before you transfer

Never use a credit card at an ATM

If you use your credit card at an ATM, it will be treated as a cash advance. Most credit cards charge an upfront cash advance fee, which is typically about 5%. There is usually a much higher “cash advance” interest rate, which is typically above 20%. And there is no grace period, so interest starts to accrue right away. A cash advance is expensive, so beware.

Always pay on time.

If you do not make your payment on time, most credit cards will immediately hit you with a steep late fee. Once you are 30 days late, you will likely be reported to the credit bureau. Late payments can have a big, negative impact on your score. Once you are 60 days late, you can end up losing your low balance transfer rate and be charged a high penalty interest rate, which is usually close to 30%. Just automate your payments so you never have to worry about these fees.

Get the transfer done within 60 days

Most balance transfer offers are from the date you open your account, not the date you complete the transfer. It is in your interest to complete the balance transfer right away, so that you can benefit from the low interest rate as soon as possible. With most credit card companies, you will actually lose the promotional balance transfer offer if you do not complete the transfer within 60 or 90 days. Just get it done!

Don’t spend on the card

Your goal with a balance transfer should be to get out of debt. If you start spending on the credit card, there is a real risk that you will end up in more debt. Additionally, you could end up being charged interest on your purchase balances. If your credit card has a 0% balance transfer rate but does not have a 0% promotional rate on purchases, you would end up being charged interest on your purchases right away, until your entire balance (including the balance transfer) is paid in full. In other words, you lose the grace period on your purchases so long as you have a balance transfer in place.

Don’t try to transfer between two cards of the same bank

Credit card companies make balance transfer offers because they want to steal business from their competitors. So, it makes sense that the banks will not let you transfer balances between two credit cards offered by the same bank. If you have an airline credit card or a store credit card, just make sure you know which bank issues the card before you apply for a balance transfer.

Comparison tools

Savings calculator – which card is best?

If you’re still unsure about which cards offer you the best deal for your situation, try our calculator. You get to input the amount of debt you’re trying to get a lower rate on, your current rate, and the monthly payment you can afford. The calculator will show you which cards offer you the most savings on interest payments.

Balance transfer or a loan?

A balance transfer at 0% will get you the absolute lowest rate. But you might feel more comfortable with a single fixed monthly payment, and a single real date your loan will be paid off. A lot of new companies are offering great rates on loans you can pay off over 2, 3, 4, or 5 years. You can find the best personal loans here.

And you might find even though their rates aren’t 0%, you could afford the payment and get a plan that takes care of your debt for good at once.

Use our calculator to see how your payments and savings will compare.

Questions and Answers

Yes, you can. Most credit card companies will allow you to transfer debt from any credit card, regardless who owns it. Just remember that once the debt is transferred, it becomes your legal liability.

Yes, you can. Most banks will enable store card debt to be transferred. Just make sure the store card is not issued by the same bank as the balance transfer credit card.

As a general rule, if you can pay off your debt in six months or less, it usually doesn’t make sense to do a balance transfer.

Here is a simple test. (This is not 100% accurate mathematically, but it is an easy test). Divide your credit card interest rate by 12. (Imagine a credit card with a 12% interest rate. 12%/12 = 1%). In this example, you are paying about 1% interest per month. If the fee on your balance transfer is 3%, you will break even in month 3, and will be saving money thereafter. You can use that simplified math to get a good guide on whether or not you will be saving money.

And if you want the math done for you, use our tool to calculate how much each balance transfer will save you.

With all balance transfers recommended at MagnifyMoney, you would not be hit with a big, retroactive interest charge. You would be charged the purchase interest rate on the remaining balance on a go-forward basis. (Warning: not all balance transfers waive the interest. But all balance transfers recommended by MagnifyMoney do.)

Many companies offer very good deals in the first year to win new customers. These are often called “switching incentives.” For example, your mobile phone company could offer 50% off its normal rate for the first 12 months. Or your cable company could offer a big discount on the first year if you buy the bundle package. Credit card companies are no different. These companies want your debt, and are willing to give you a big discount in the first year to get you to transfer.

Completing a balance transfer is easy. If you are applying for a new credit card, most credit card companies will just ask you for the account number of the credit card that has the debt. The transfer will then happen automatically. (It will look like the balance transfer credit card made a payment for you). You can also call your credit card company, and complete the transfer easily on the phone.

Automate your payments so that it doesn’t happen! If you do miss a payment, you will be charged a late fee. If you become 60 days late, you could lose your promotional interest rate and could be charge the punitive rate, which is often near 30% with most companies.

No, you can’t. Credit card companies are trying to steal balances from their competitors. So these deals are only good if you bring balances from competitors.

Many credit card issuers will allow you to transfer money to your checking account. Or, they will offer you checks that you can write to yourself or a third party. Check online, because many credit card issuers will let you transfer money directly to your bank account from your credit card. Otherwise, call your issuer and ask what deals they have available for “convenience checks.”

In most cases, you cannot. Once a balance transfer is complete, it is complete.

Yes, it is possible to transfer the same debt multiple times. Just remember, if there is a balance transfer fee you would be charged that fee every time you transfer the debt.

You can call the bank and ask them to increase your credit limit. However, even if the bank does not increase your limit, you should still take advantage of the savings available with the limit you have.

Yes. You decide how much you want to transfer to each credit card.

No. You do not earn rewards with a balance transfer. No cash back, no points and no miles can be earned with a balance transfer.

No, there is no penalty. You can pay off your debt whenever you want without a penalty.

Mathematically, the best balance transfer credit cards are no fee, 0% offers. You literally pay nothing. The best in the market is offered by Chase, which has a 15 month 0% introductory offer with a $0 introductory fee.

However, if your debt is already with Chase, or you think it will take years to pay off your debt, you should consider a longer duration offer or a personal loan. You can find 21 month offers with 3% fees and 24 month offers with 4% fees. Your savings over the two years would likely be substantial, even when you include the cost of the fee.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Nick Clements
Nick Clements |

Nick Clements is a writer at MagnifyMoney. You can email Nick at nick@magnifymoney.com

TAGS:

Advertiser Disclosure

Best of, Earning Interest

The Top 6 Month CD Rates for February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

The top 6 month CD rates
Source: iStock

Short-term certificate of deposit (CD) accounts offer investors a safe opportunity to squirrel away money for a future expense. If you’re looking for a brief solution for storing your cash and want to earn more interest than a typical savings account will offer, a 6 month CD can make a lot of sense. (It’s also a good place to start if you’re building a CD ladder.)

Using information from DepositAccounts.com, another LendingTree company and a database of offerings at more than 17,100 banks and credit unions, we found the five banks and five credit unions with the top 6 month CD rates. If there was a tie, we chose the institution with the smaller minimum-deposit requirement. We pulled these rates on Feb. 5, 2018, and we excluded promotional offerings. The national average APY on 6 month CDs (among banks and credit unions) is 0.44%, according to the DepositAccounts.com database. These options outperform that average by a long shot. (You may also want to view our picks for the overall best CD rates.)

Banks with the best 6 month CD rates

Live Oak Bank

Live Oak Bank

6 month CD APY: 1.65%
Bank information: Live Oak Bank is located in Wilmington, NC, but serves customers nationwide through online banking. While their initial focus was to help small businesses acquire funding, they now help all individuals through personal banking.
Where to open CD account: Online
Minimum balance to open: $2,500
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

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Member FDIC

First Internet Bank

First Internet Bank of Indiana

6 month CD APY: 1.63%
Bank information: A subsidiary of First Internet Bancorp, this online bank founded in 1999 has no branch locations, but offers service online in all 50 states.
Where to open CD account: Online
Minimum balance to open: $1,000
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

VirtualBank

6 month CD APY: 1.56%
Bank information: VirtualBank is a subsidiary of Louisiana-based IBERIABANK Corp., offering 24/7 digital or telephone access on eCDs, open to applicants anywhere in the U.S.
Where to open CD account: Online (paperless account options)
Minimum balance to open: $10,000
Maintenance fees: $0
Early withdrawal penalties: 30 days’ interest

DollarSavingsDirect

DollarSavingsDirect

6 month CD APY: 1.50%
Bank information: DollarSavingsDirect is an online division of Emigrant Bank, which is located in New York.
Where to open CD account: Online
Minimum balance to open: $1,000
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

M.Y. Safra Bank - deposite services

M.Y. Safra Bank

6 month CD APY: 1.45%
Bank information: M.Y. Safra Bank has been around since 2000, offering a wide variety of banking products to their customers. Although their physical location is in New York, they provide online banking to customers located outside of New York.
Where to open CD account: Online
Minimum balance to open: $5,000
Maintenance fees: $0
Early withdrawal penalties: Credited interest or 90 days’ interest — whichever is greater

Credit unions with the best 6 month CD rates

Latino Credit Union

6 month CD APY: 1.50%
Credit union information: Founded in Durham, N.C., in 2000, Latino Credit Union opened its doors as a solution to the Durham Latino community who were being robbed and mugged. While their original intent was to serve the Latino community, they have since expanded their membership to include anyone and everyone.
Membership details: Anyone who is willing to provide a one-time $10 donation to the Latino Community Development Center is welcome to become a member of the credit union.
Where to open CD account: Online
Minimum balance to open: $500
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

Service Credit Union

Service Credit Union

6 month CD APY: 1.30%
Credit union information: Founded in Portsmouth, N.H., in 1957, Service Credit Union originally served employees of Pease Air Force Base. Today, it has grown to serve over 200,000 people throughout New Hampshire, North Dakota, Massachusetts, and even Germany.
Membership details: To become a member, you must live or work, or have family members that live or work in New Hampshire or Falmouth, Bourne, Mashpee, and Sandwich, Mass. Current members of the military, veterans, retirees, and reservists of the U.S. Armed Forces along with their families are also eligible for membership.
Where to open CD account: You can open an account online or at one of their many branches.
Minimum balance to open: $250
Maintenance fees: $0
Early withdrawal penalties: Determined by credit union.

PenFed Credit Union

6 month CD APY: 1.30%
Credit union information: PenFed, established in 1935, today serves more than 1.6 million members at branch locations in all 50 states and select overseas facilities.
Membership details: Open to current or retired members of the U.S. military, federal employees, affinity partners, members of qualifying organizations, or by donating to Voices for America’s Troops or the National Military Family Association.
Where to open CD account: You can open an account online or at one of their branches.
Minimum balance to open: $1,000
Maintenance fees: $0
Early withdrawal penalties: 90 days’ interest

LEARN MORE 

NCUA Insured

Bethpage Federal Credit Union

6 month CD APY: 1.25%
Credit union information: Bethpage Federal Credit Union, located in Bethpage, NY, was founded for employees of Grumman Plant in 1941. Since then, they’ve undergone a lot of changes to expand their membership to include anyone in the U.S.
Membership details: A one-time $5 deposit into a Bethpage savings account enables you to become a member of the credit union.
Where to open CD account: Online
Minimum balance to open: $50
Maintenance fees: $0
Early withdrawal penalties: Determined by credit union.

Capital Educators Federal Credit Union

CapEd Credit Union

6 month CD APY: 1.25% (must be under 25 years old to earn APY)
Credit union information: CapEd Credit Union focuses on supporting teachers in Idaho, but is open to almost anyone.
Membership details: To become a member, you must work, volunteer, or have retired from the educational industry in Idaho. If you have a family or household member who works, volunteers, or has retired from Idaho’s educational system, you can also qualify for membership. Finally, if you have a family or household member who is already a CapEd member then you are eligible for membership.
Where to open CD account: Online
Minimum balance to open: $500
Maintenance fees: $0
Early withdrawal penalties: The lesser of 90 days’ interest, interest earned within the number of days between opening the account to the date of withdrawal, or seven days’ interest if withdrawn before seven days.

Pros and cons of using 6 month CDs

Pros:

  • The CD rates offered by banks and credit unions are generally higher than those on savings accounts.
  • The rates are fixed and guaranteed for the length of their term.
  • The discipline of keeping the funds in the CD means the money will be available upon maturity. (Note: Most banks offer a seven-day grace period to reinvest or withdraw the investment, after which the funds will roll over into a new CD. However, you are not guaranteed the same rate.)

Cons:

  • Six-month CD rates are lower than those offered on longer CD investment terms.
  • To tap into the CD funds — even for emergencies — consumers must accept a loss through penalties, which can include a percentage of the funds, a percentage of the earned interest, or a combination of both. A typical penalty on a short-term CD is between 30 and 90 days’ worth of interest earnings.
  • If you’re not confident you can do without access to the funds for six months, you may be better off putting your money in a traditional savings account, which is likely to earn less interest than a CD.
  • Since CD rollovers may reset at a different percentage rate, consumers must speak with the bank before the grace period ends to ensure they are getting the best deal.

Using a 6 month CD for laddering

A CD ladder comprises small-amount CDs with varying terms and respective interest rates that contribute to a long-term investment strategy. After the 6 month CD matures, investors can withdraw the funds for a predetermined expense. Or, they can reinvest the money into a longer-term CD with a better rate. By staggering the maturity dates on short-term CDs, consumers have access to their cash on a regular, predictable basis.

Where can you open a CD account?

Consumers can open 6 month CD accounts (or longer) from banks and credit unions. Bank and credit union CD rates are based on Federal Reserve rates, and there may be strategic times to pursue these short-term instruments following a rate increase.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

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The Best Business Savings Account Rates in 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

Are you looking to start or grow a business? Opening a business savings account can offer federal protection for the funds you deposit (up to $250,000) and provide a source of liquidity should inevitable expenses arise. You can earn interest while setting aside money for capital improvement or income taxes. A commercial savings account can add credibility to your business, arm you with a business debit card and help your cash flow.

The best way to choose an account that fits your needs is to start by comparing the annual percentage yield offered by banks and credit unions. Then look for benefits that might make the account attractive based on your needs. Is there a monthly maintenance fee or a minimum deposit to open? Does the bank provide ample access to ATM and online account services?

Deciding which business savings account is best for your needs can be a difficult process, but hopefully this roundup of our picks for best savings accounts will help give you a head-start.

The best business savings account rates — February 2018

Institution

APY

Minimum balance amount

Community Bank of Pleasant Hill

1.19%

None

Community Bank of Raymore

1.19%

None

First Internet Bank of Indiana

1.16%

None

BofI Federal Bank

1.06%

$25,000

Live Oak Bank

1.05%

None

Digital Federal Credit Union (DCU)

1.00%

$25,000

Presidential Bank (Maryland)

0.50%

$5,000

UniBank

0.35%

$2,500

Signature Federal Credit Union

0.30%

$100

SaviBank

0.30%

None

Source: Deposit Accounts, Feb. 5, 2018

1. Community Bank of Pleasant Hill, 1.19% APY, No minimum balance

With its 1.19% APY, the Business Premier Money Management Account at Community Bank of Pleasant Hill offers highly competitive rates to explore. You need only put down $25 to open the account and maintain a minimum balance of $10,000 to avoid a $10 monthly service charge and $4 paper statement fee.

ATM access is offered surcharge-free when using ATMs in the MoneyPass® network. Community Bank began operations on Dec. 6, 2006, and is a member of the FDIC. Members can search for partner ATMs online or through mobile access.

Fine print: Just watch out for hefty withdrawal fees. You can make free withdrawals on the second and fourth Wednesdays of the month; on other days, there’s a $25 withdrawal fee. If you plan to make regular in-person withdrawals, this probably isn’t the best account for your needs.

Restrictions on joining: none.

LEARN MORE Secured

on Community Bank Of Pleasant Hill’s secure website

2. Community Bank of Raymore, 1.19% APY, $25 minimum deposit to open

The Community Bank of Raymore created its Premier Money Management Account specifically for business customers who carry high balances and are looking for security. It costs $25 to open your account but you’ll earn a solid 1.19% APY.

You must maintain a balance of at least $10,000 or you’ll be assessed a monthly $10 charge. You may only make free withdrawals on the second and fourth Wednesdays or face a $25 fee.

Electronic statements are free of charge. Nationwide ATM service without charge is available through the MoneyPass® network.

The Community Bank of Raymore was chartered in Missouri in May 15, 1979. According to the bank website, the idea of the bank originated at a community meeting at Raymore Elementary School in 1976.

Fine print: You’ll be restricted to two days a week for making free withdrawals in Raymar, too, on the second and fourth Wednesdays of the month. Other days, you’ll have to cough up $25.

Restrictions on joining: none.

LEARN MORE Secured

on Community Bank Of Raymore’s secure website

3. First Internet Bank of Indiana, 1.16% APY up to $250,000, ATM services

First Internet Bank offers an FDIC-insured savings option for businesses with a relatively good 1.16% APY. However, if you have more than $250,000 to put in their business savings account, they'll award you with a 1.41% APY. Unfortunately, the FDIC only insures up to $250,000. So, if you deposit more than $250,000 into the savings account, the excess deposit amount will not be insured by the FDIC.

It costs $100 to open your business account and you must maintain an average daily balance of $1,000 to avoid a $2 monthly maintenance fee.

There is no minimum balance to open or maintain the account. Unlimited deposits can be made each month and six transfers or withdrawals are allowed without charge.

The First IB ATM cards are offered to sole proprietors only. There is no charge for ATM transactions or electronic statements. Founded in 1999 by the First Internet Bancorp, First IB offers remote banking in all 50 states.

Fine print: Only six preauthorized, automatic, PC, or telephonic transfers are allowed each month. This restriction is common among most of these institutions, however, First Internet Bank will charge you $5 per item if you go beyond the allotted six.

Restrictions on joining: none.

LEARN MORE Secured

on First Internet Bank Of Indiana’s secure website

4. BofI Federal Bank: 1.06% APY, $25,000 minimum balance, ATM access

BoFI Federal Bank offers one of the top APY rates in the DepositAccounts nationwide survey of business savings accounts. The bank’s Business Premium Savings Account with a high-yield 1.06% APY can be opened with a $25,000 minimum deposit.

There is no monthly maintenance fee for the account and no average daily balance requirement.

BoFI also makes it easy to access your funds when you need it. Customers have ATM access to their accounts along with free online banking. However, ATM withdrawal limits are $1,010 per day and there’s a daily purchase limit of $5,000. BofI is an FDIC-insured bank based in San Diego and publicly traded online. Other products include Business Interest Checking and Business Money Market accounts.

LEARN MORE Secured

on BofI Federal Bank’s secure website

5. Live Oak Bank, 1.05% APY, No minimum balance

Live Oak Bank awards 1.05% APY on its business accounts are eight times the national average. There is no minimum opening balance or deposit required to open a business savings account.

The business savings account is open to deposits of up to $5 million and is free of monthly maintenance fees. You may make up to 6 withdrawals from your Live Oak Bank Savings account per statement cycle, including preauthorized, automatic and telephone transfers. After that there’s a $10 fee per withdrawal. Live Oak Bank, established in 2008, holds assets of $2.12 billion.

The bank is in Wilmington, N.C., and is a member of the FDIC. Learn more about business savings at Live Oak Bank.

Small Print: The bank may verify credit and employment history at its discretion, meaning you may receive a pull against your credit report.

Restrictions on joining: none.

LEARN MORE Secured

on Live Oak Bank’s secure website

6. Digital Federal Credit Union (DCU), 1.00% APY, $25,000 minimum balance

Digital Federal Credit Union offers a solid 1.00% APY rate through its Business DCU Ltd Savings Account with a minimum $25,000 balance.

Businesses participating in the DCU Ltd Savings Account receive 24/7 online banking, mobile banking through the DCU Mobile Banking App, access to DCU ATMs, deposits, transfers or balance verification. Watch out for their ATM fees, though. They charge $0.75 per withdrawal from a non-DCU ATM, which will surely add up if you make regular withdrawals. Created by the Digital Equipment Corporation in 1979, DCU is the largest credit union in Massachusetts by assets. Federally insured by NCUA, DCU is based in Marlborough, Mass.

Restrictions on joining: To join, you must meet eligibility requirements within the field of membership for employers, organizations, participating communities or condominium associations.

LEARN MORE Secured

on Digital Federal Credit Union (DCU)’s secure website

7. Presidential Bank (Maryland), up to 0.50% APY, $5,000 to open, ATM services

Presidential Bank’s Commercial Premier Savings account offers 0.50% APY for balances up to $35,000, making it a decent — if not extraordinary — bet for business owners.

Business customers are not required to maintain a minimum balance on the account in order to receive all ATM privileges. So long as you use one of their ATMs you won't incur fees, but there is a $0.75 ATM fee for non-network ATMs. Free online banking, mobile banking and ATM card come with the account.

Established in 1985, Presidential Online Bank was one of the first lenders to offer online banking. Located in Bethesda, Md., it currently lists assets in excess of $550 million.

Restrictions on joining: none.

LEARN MORE Secured

on Presidential Bank’s secure website

8. UniBank, 0.35% AYP, $25,000 minimum balance, $500 to open, ATM services

The Business Regular Savings account at UniBank currently pays out 0.35% AYP for all accounts starting at $2,500. It costs $500 to open your business account and the monthly service fee is $12.

You can have that service fee waived by maintaining a $2,500 minimum daily balance. Customers have online, telephone and ATM access to their business accounts. There are more than 25,000 surcharge-free UniBank ATMs available through the MoneyPass® network.

Established in 2006, the bank is located in Lynnwood, Wash. While its business savings account rates leave much to be desired, the bank’s strength may lie in its current money market rates, which Deposit Accounts says are 70 percent higher than the national average.

Restrictions on joining: none.

LEARN MORE Secured

on UniBank’s secure website

9. Signature Federal Credit Union, 0.30% APY, $100 minimum deposit to open

The Business Convention Savings account at Signature Federal Credit Union offers a 0.30% APY. You can open the account with as little as $100 and the account will begin earning the APY once the account is funded with the minimum deposit amount.

The account comes with zero monthly fees and doesn't require a minimum balance amount to earn the APY as long as you open the account with $100.

Signature Federal Credit Union was founded in 1970 and is currently headquarterd in Alexandria, VA. The credit union has assets over $296.6 million and has partnered with National Shared Branching to allow their customers to conduct business nationwide without the restriction of a Signature Federal Credit Union location.

Restrictions on joining: $5 fee to join the credit union. The $5 will be deposited into a basic savings account.

LEARN MORE Secured

on Signature Federal Credit Union’s secure website

10. SaviBank, 0.30% APY, $250 minimum daily balance, $100 to open, ATM services

Rounding out the top 10, the business savings accounts at SaviBank offer a decent 0.30% APY. It costs $100 to open the account. If you keep a minimum daily balance of $250, the bank dismisses a $5 monthly service charge.

Checks and third-party withdrawals are limited to six for each calendar month.

Established in Burlington, Wash., in 2005 as Business Bank, SaviBank offers 24-hour access to accounts through online banking and surcharge-free ATM locations nationwide over the MoneyPass® network.

Restrictions on joining: none

LEARN MORE Secured

on SaviBank’s secure website

Learn more about business savings accounts

How we ranked the best business savings accounts

To come up with this list, we first used data from DepositAccounts.com, which tracks rates on a range of deposit accounts across thousands of banks in the U.S. Note: DepositAccounts is also owned by MagnifyMoney’s parent company LendingTree.com.

We eliminated any institutions that were given a health rating below a B by DepositAccounts. We also weeded out any credit unions that have very restrictive membership requirements. From there, we chose the top 10 business savings accounts with the highest APY. And lastly, all the banks on our list offer FDIC or NCUA insurance.

Business savings accounts vs personal savings accounts

Business and regular savings accounts may offer many of the same features ,such as 24/7 online banking, free electronic reporting, debit cards, fund transfers and ATM machines.

The trade-off in choosing a business account is that you’ll get services focused on business planning and spending in exchange for a less-desirable APY.

When you compare the interest earned on a business savings account with the best APY rates offered on savings accounts, it may not look like opening a business account is a wise strategy. The top business savings account APY right now is 1.11%. The top APY among personal savings accounts is 1.60% with no minimum deposit and ATM access. You can weigh the services, charges and minimum account fees between the top business and top personal savings accounts to decide which is best for you.

There are other benefits to offset any differences in earnings, particularly if your business is incorporated. It’s considered sound business practice to separate your personal saving and checking accounts from your business saving and checking accounts. A business account can help you manage cash flow, accounting, recordkeeping and working capital. At income tax time, separate accounts can help you differentiate business from personal expenses.

Paired with a business checking account, your business savings account can add professional branding, since all payments and correspondence with clients will bear your business name.

Or you can create savings in your business account to pay quarterly income taxes or purchase equipment.

Finally, business savings accounts are secure when you open accounts with banks and credit unions that are insured up to $250,000 per account by the FDIC or the NCUA.

North Shore Bank of Brookfield, Wis., says that a business savings account can boost your credit ratings and make it easier to obtain a business loan, since the lender can see you have an account dedicated to your company.

Choosing the right business savings account

When evaluating a financial institution for your business, there’s more than just finding a good APY.

Many of the banks on our Top 10 list look great on the APY front but carry fees that can eat into any of the returns you might make. Particularly, watch out for fees for ATM or bank withdrawals, monthly service fees and ATM fees.

The Small Business Administration (SBA) has identified the key factors to consider when searching for the right bank or credit union. These include:

  • Customer service reputation
  • Access to branches or no-surcharge ATMs
  • Benchmarks to have fees waived
  • Automatic FDIC insurance

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Gabby Hyman
Gabby Hyman |

Gabby Hyman is a writer at MagnifyMoney. You can email Gabby here

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The Best Credit Union CD Rates – February 2018

The editorial content on this page is not provided by any financial institution and has not been reviewed, approved or otherwise endorsed by any of these entities.

The top credit union CD rates
Source: iStock

Certificates of deposit (CDs) are a great way to safely store your savings at a financial institution, as they offer a guaranteed rate of return, and CD rates tend to be higher than those on traditional savings accounts. Maybe you’ve even heard that credit union CD rates offer higher returns—but is that really the case?

On average, yes. As of December 2017, the average one-year credit union CD had a 0.68% annual percentage yield (APY), compared to the 0.54% APY average among one-year bank CDs.

Using data from DepositAccounts.com, another LendingTree company, we identified the top one-year credit union CD rates, as of Feb. 5, 2018. We then eliminated any credit union with a health rating lower than a B and identified the top three offerings in three categories: restricted, no cost, and best banking app. If there was a tie by APY, we went with the product with the lower minimum deposit. Here are the best one-year credit union CD rates.

Best CD rates for credit unions with no cost to join

The thing about credit unions is that they’re not usually just open to anyone. You usually need to meet some membership criteria in order to get in and get access to all of their really nice products. These credit unions, however, will let you in for free regardless of your personal details. (Note: Only two credit unions met our criteria for this list.)

Unify Financial Credit Union - 1-Year Share Certificate, 1.00% APY, min. deposit $1,000

UNIFY Financial Credit Union
Unify FCU offers the highest interest rates on CDs (which it calls share certificates) of any credit union with no cost to join. The interest rate on their 12-month CD, for example, is 1.00%, compared to the national average of 0.68% in December. You would earn $8.50 on a $1,000 deposit. If you withdraw your money early, however, you’ll face a penalty of 90 days’ worth of interest.

NASA Federal Credit Union - 1-Year Share Certificate, 0.65% APY, min. deposit $1,000

NASA Federal Credit Union
If the rigid inflexibility of CDs makes you leery, NASA FCU might be your best bet. They have a lot of flexible certificates, such as add-on certificates that let you start with as little as $250, and bump-rate certificates that let you opt for a one-time interest rate increase if rates go up. You can even take out a loan from your certificate should you need the cash before it’s matured. You can join NASA FCU with a complimentary membership to the National Space Society.

If you do need to make an early withdrawal, you will face a penalty of 180 days’ worth of interest.

Best credit union CD rates with restricted memberships or membership fees

Each of these credit unions have restricted membership criteria, but don’t let that scare you away. If you don’t meet their membership criteria, it’s possible to make a small donation to their charity of choice in order to become eligible for membership. Furthermore, these credit union CD rates offer some of the highest-returning share certificates out of any category.

Connexus Credit Union - 12 Month Certificate, 2.01% APY, min. deposit $5,000

With a $5 donation to the Connexus Association, anyone can join Connexus Credit Union. The Connexus Association assists educational institutions by providing scholarships and financial information. Once you become a member of the credit union, you’ll be able to open their 12 month CD with a $5,000 deposit.

If you’re able to deposit $5,000 into Connexus’s 12 month CD, you’ll earn $100.50 by the end of the term. However, if you withdraw funds early, you’ll be penalized with 90 days’ worth of interest.

Latino Credit Union - 12 Month CD, 2.00% APY, min. deposit $500

To become a member of Latino Credit Union, anyone can simply donate $10 to the Latino Community Development Center. Once you become a member of this credit union, you’ll be able to take advantage of their 2.00% APY by depositing $500. Early withdrawal penalties are worth 90 days of interest on their 12 month CD.

USAlliance Financial – 12 Month CD, 1.97% APY, min. deposit $500

USALLIANCE Financial
Membership to USAlliance Financial is open to anyone who lives, works or worships in certain counties of Massachusetts, the city of West Haven, Conn., and a few districts in New York. However, if you don’t qualify by location, you can qualify by giving USAlliance authorization to make you a member of various organizations, including the American Consumer Council, if you aren’t already a member of these organizations. Keep in mind that these organizations may request fees.

Once you’re a member of USAlliance Financial, you can open a 12-month CD with a minimum of $500. Their early withdrawal penalty equals 180 days’ worth of interest earned on the amount you withdraw.

PenFed Credit Union – 1-Year Money Market Certificate, 1.87% APY, min. deposit $1,000

PenFed Credit Union
PenFed tops this list with an APY of 1.87%. With a minimum deposit of $1,000, you could earn $18.70 in one year. Interest is compounded daily and posts to accounts monthly. However, be aware of the steep early withdrawal penalty. If you withdraw funds before the year is up, you may forfeit all interest accrued up to that point.

Eligibility for this credit union is mainly based on military status, governmental employment status, affiliation with certain associations and organizations or relation to eligible members. However, if you don’t qualify through those criteria, getting a membership to this credit union is not difficult if you’re willing to pay a one-time fee of $17 to either Voices for America’s Troops or the National Military Family Association.

LEARN MORE 

NCUA Insured

Alliant Credit Union – 12-17 Month Share CD, 1.75% APY, min. deposit $1,000

Alliant Credit Union
With a minimum deposit of $1,000, you could earn an APY 1.75% on a 12-17 month CD. If you deposit $25,000 or more, you may be able to earn an APY of 1.80% with the same term. An early withdrawal penalty of 90 days’ worth of interest may be imposed if you withdraw funds prior to the CD’s maturity date.

With a $10 donation to Foster Care to Success, you can easily become a member of Alliant Credit Union. You can also become a member if you are an employee or retiree of certain organizations, related to existing Alliant members, or live or work in qualifying communities.

Best CD rates for credit unions with the best mobile apps

By their very nature, CDs aren’t something that require constant attention, poking, and prodding. It’s a set-it-and-forget-it kind of a deal, so you won’t need any spiffy banking apps to use CDs.

But, if you’d like to switch all of your banking to the same institution that holds your CDs, it might be a wise idea to consider one of these credit unions if you’re a digital junkie. Most credit unions lag behind their bank compatriots in terms of mobile banking apps, but these credit unions offer top-notch mobile apps, according to MagnifyMoney’s 2017 mobile banking app analysis.

Wright-Patt Credit Union - 1-Year Certificate, 2.00% APY, min. deposit $500

Wright-Patt Credit Union
Unlike many credit unions, you can’t just make a simple donation to join Wright-Patt CU if you fail to meet their membership criteria. You need to live in certain areas of Ohio, be associated with Wright-Patterson Air Force Base, or be an employee of their select employer group, among other options.

You can earn $10.00 on a 12-month CD with just a relatively small $500 deposit. Early withdrawal penalties vary depending on the original term of your CD, however they’ll be anywhere between 5-12 months’ worth of dividends.

Redstone Federal Credit Union – 12 Month MemberPlus Regular Share Certificate, 1.61% APY, min. deposit $1,000

Redstone Federal Credit Union
Similar to Wright-Patt CU, you can’t just make a simple donation to join to Redstone Federal Credit Union if you fail to meet their membership criteria. You need to be a government employee or contractor, a member of the military, reserve, or National Guard, or affiliated with a number of organizations listed on their website among other options.

However, if you do qualify for membership, you could earn an APY of 1.61% with a minimum deposit of $1,000. This could earn you an additional $16.10 at the end of the 12 month term. Redstone FCU has compounding and non-compounding certificates, which allow you to have the option to withdraw interest earned or not throughout the term of the certificate.

Eastman Credit Union - 1-Year Investment Certificate, 1.40% APY, min. deposit $1,000

Eastman Credit Union
Eastman Credit Union also has pretty restrictive membership requirements. You’ll have to be an employee (or a family member of an employee) of one of their select employers, or live in certain parts of Tennessee, Texas, or Virginia.

Eastman CU is another one of the rare credit unions that allow you to withdraw your dividends penalty-free before the maturity date, although again, doing so will lower your total returns. Currently, you can earn an interest rate of 1.40% on a 12-month CD. With a minimum deposit of $1,000, that translates into earnings of $14.00 after one year. If you withdraw your money before the CD matures, you’ll owe a penalty fee of anywhere between seven days’ worth of dividend earnings or all of your dividend earnings.

Delta Community Credit Union – 1-Year Certificate, 1.00% APY, min. deposit $1,000

Delta Community Credit Union
There are many ways to join Delta Community CU, such as living in certain parts of Georgia, being a member of one of their select employers, or being a member of one of their partner organizations. Interestingly, citizens of many countries like Argentina, France, and Peru are also eligible to join.

Delta Community CU used to be the lowest-earning credit union on our list, but recently increased the APY on this product from 0.75% to 1.00%. The early withdrawal penalty is 90 days’ worth of interest on a 12-month CD.

3 questions to consider before opening a credit union CD

Banks are more likely to call their products certificates of deposit, while credit unions often refer to them as share certificates. Aside from the name, the biggest difference between the two is that credit unions have higher average annual percentage yields (APYs), as of December 2017. That’s good news: It means more money back in your pocket when the CD matures (i.e., reaches the end of its term and is available for withdrawal).

There really is no difference in safety between depositing money in a CD with a credit union versus a bank, as long as they participate in either the National Credit Union Administration (NCUA) for credit unions, or the Federal Deposit Insurance Corporation (FDIC) for banks.

According to Neal Frankle, a Los Angeles-based Certified Financial Planner with Wealth Pilgrim, deposits of up to $250,000 per financial institution are “backed by the full faith and credit of United States Government, so it's pretty solid.”

For the most part, choosing a CD at a bank or a credit union boils down to your preference as a consumer: Do you want to be a bank customer or a member of a credit union? Here’s a primer on the differences.

The biggest advantage of credit union CDs over bank CDs is that you can likely earn more interest. But with both products, the longer the CD term, the more interest you will earn. And with a CD laddering strategy, you can have the best of both worlds: frequent access to your money, yet you can still keep it locked away in high-interest, long-term CDs.

Beyond that, the disadvantages of opening a credit union CD are the same as if you’re opening a CD with a bank. You can’t access that money without paying an early withdrawal penalty until the CD matures. While CDs do offer some of the highest rates for any financial product you’re likely to come across at a bank or credit union, they still don’t really earn great interest. If you’re investing for the long-term (like retirement savings), your money is better invested in the riskier (but higher-earning) stock or bond market.

Advertiser Disclosure: The card offers that appear on this site are from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all card companies or all card offers available in the marketplace.

Lindsay VanSomeren
Lindsay VanSomeren |

Lindsay VanSomeren is a writer at MagnifyMoney. You can email Lindsay here

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