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Best Secured Credit Cards with Low Deposit Requirements – February 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

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Secured credit cards are used as a tool to build credit history from scratch or put positive information on a credit report after negative incidents such as bankruptcy, missed debt payments or accounts in collections. By feeding positive information into a credit report, you can improve a credit score, which is essential for getting the best financial products on the market.

In order to be eligible for a secured credit card, you must provide a minimum deposit. This deposit typically serves as your line of available credit, but in some cases your line of credit may be higher. Plenty of secured cards require rather hefty minimum deposits of $300 or more, which may be prohibitive for many Americans living paycheck-to-paycheck.

Fortunately, alternatives to the high deposits exist. We’ve pulled together a list of the best secured cards that require a deposit and/or credit union membership fee of $200 or less.

$200 minimum deposit: Discover it® Secured

Discover it® Secured The Discover it® Secured has a minimum deposit of $200. This is our favorite secured credit card for a number of reasons including: no annual fee, the ability to earn cash back, and our favorite feature — automatic monthly reviews of your account that start at month eight. However, the one downfall of this card is the high ongoing APR, but you should always pay your bill on time and in full so you avoid interest charges.

Here are the benefits of the Discover it® Secured in more detail:

Automatic monthly reviews starting at month eight: Discover will start automatic monthly reviews of your account at month eight. If you qualify, you could be transitioned to an account with no security deposit. Even better, you could potentially be eligible for a bigger credit limit. This feature really sets Discover apart from the competition – and your goal should be to get back your deposit as quickly as possible through responsible credit behavior.

No annual fee: There is a $0 annual fee for this card.

Bankruptcy? No problem: If you have filed Chapter 7 bankruptcy in the past, you can still qualify for this card. It is a great way for people to rehabilitate their credit.

Earn cash back: Most secured credit cards do not offer any rewards. With the Discover it® Secured, you have the opportunity to earn cash back while building your credit. You can earn 2% cash back at Gas stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically. Earning cash back is not the primary reason to select a secured credit card, but it is a nice option to have available.

Free FICO® Credit Score: Discover will provide you with a copy of your official FICO® credit score. A good step in proper credit behavior is to monitor your score each month.

Read our review for more information on the Discover it® Secured.

How to go from a secured card to unsecured card: Discover will automatically review your account starting at month eight to see if you can be transitioned to a card without a security deposit. If you qualify, you can receive an unsecured card and your security deposit will be refunded. Note that the reviews are based on various factors, including responsible credit management across all of your credit cards and loans.

APPLY NOW Secured

on Discover Bank’s secure website

Rates & Fees

$49, $99, or $200 minimum deposit: Capital One® Secured Mastercard®

Capital One® Secured Mastercard®

APPLY NOW Secured

on Capital One's website

Capital One® Secured Mastercard®

Annual fee
$0
Minimum Deposit
$49, $99, or $200
Regular Purchase APR
26.99% (Variable)

The Capital One® Secured Mastercard® offers a minimum deposit as low as $49, depending on credit worthiness. If you don’t receive the $49 minimum deposit, you may receive a deposit of $99 or $200. This may be a good option if you don’t have $200 to deposit, just remember that the $49 deposit is not guaranteed. If approved for the card, once you make your minimum required security deposit, you will receive a credit line of $200.

Read our review for more information on the Capital One® Secured Mastercard®.

How to go from a secured card to unsecured card: Capital One has a feature where they will automatically review your account for on-time payments and will inform you if you’re eligible for an upgrade. If eligible, you will be refunded your security deposit and will receive an unsecured card. The catch is that there is no time frame for when your account will be reviewed. Capital One said that it depends on various credit activities.

$200 minimum deposit: Citi® Secured Mastercard®

Citi® Secured MasterCard®

The information related to Citi® Secured MasterCard® has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Citi® Secured MasterCard®

Annual fee
$0
Minimum Deposit
$200
Regular Purchase APR
23.99% (Variable)

The Citi® Secured Mastercard® is a no-frills secured credit card. There is a $0 annual fee and a $200 minimum deposit requirement, like most cards on this list. Unfortunately, there are no rewards associated with this card — however that’s typical for a secured card. When coupled with responsible credit behavior, this card can help you build credit and work your way to an unsecured card.

How to go from a secured card to unsecured card: Citi will hold your security deposit in a Collateral Holding Account for 18 months. Prior to the 18-month term ending, Citi will send you a notification in the mail informing you if you will be transitioned to an unsecured card. If transitioned, you will receive an unsecured card and your deposit back. If not, you will still have your secured card. The status of your account at the end of the 18-month term and whether you get back your deposit depends on your account history and other credit factors.

$100 minimum deposit: Visa Classic Secured by Justice FCU

Visa Classic Secured Card from Justice FCU

Visa Classic Secured Card from Justice FCU

Annual fee
$0
Minimum Deposit
$100
Regular Purchase APR
16.90% Variable

You can join Justice FCU if you are an employee, retiree, or family member of the Department of Justice, Department of Homeland Security, United States Courts or another qualifying group. If that doesn’t apply, don’t fret. Anyone can join JFCU by first becoming a member of an eligible JFCU association like the National Sheriff’s Association, which charges a $41 membership fee for auxiliary or student members. It only costs $5 for eligible individuals to join JFCU, so that would raise the total cost of membership to $46. Credit limits range from $100 to 110% of pledged shares.

Note: Justice FCU makes it hard to find the Visa Classic Secured card on their site. When you’re on their credit cards webpage, scroll to the bottom then click on the ‘Apply Now’ directly below the VISA Classic card. That will take you to a new page where you need to click ‘Apply Online’ to land on a general application page. From there select ‘Credit Card’ and the ‘VISA Classic Secured’ will be displayed. You can call customer service to obtain more information on the card.

How to go from a secured card to unsecured card: Justice FCU doesn’t provide automatic reviews of your account or a simple way to transition to an unsecured card — you need to initiate the upgrade to an unsecured card. To do this, apply for one of their unsecured credit cards. Then, upon approval, your secured card will automatically be cancelled and you will receive your security deposit back. Note that your approval for an unsecured card depends on your creditworthiness.

Best Strategy for Rebuilding Credit

The strategy for building a strong credit score with a secured card is simple. Make one small purchase each month ($10 or less), wait for your statement to come in, pay your bill on time and in full and then repeat the next month. By making just small purchases, you’ll be using a very low amount of your overall credit limit (also called utilization), which helps drive your credit score up faster because it shows you’re responsible.

Keep an Eye on Your Credit Score and Credit Report

Once you’re in the process of building or rebuilding your credit, it helps to have a benchmark. Do a monthly check in with your credit score to see how it’s improving.

In addition, you should also keep tabs on your credit report by downloading the report from each of the three bureaus. By law, you’re entitled to one free report from each bureau per year. You can download them all at once or space them out throughout the year. Go to annualcreditreport.com to download your free reports. Monitoring your reports will ensure all the information there is accurate and alert you about anything that may be damaging to your score, like an item in collections or reported missed payments.

A Word to the Wise

Never carry a balance on your secured card. The point of a secured card is to be building (or rebuilding) your credit history. Make one small purchase a month and pay it off on time and in full. Follow those two steps and you’ll see your credit score start to raise quickly.

Find other secured card options on our secured card comparison table.

Advertiser Disclosure: The products that appear on this site may be 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 financial institutions or all products offered available in the marketplace.

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Best of, Earning Interest

The Best High-Yield Online Savings Accounts in February 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.

Start saving today with these high-yield bank accounts

Updated February 20, 2020
There are no excuses for sticking with a low-rate savings account these days. Online savings accounts provide consumers with interest rates that are way above those offered by conventional banks. The best online savings accounts can easily earn you an APY of 1.70% or greater, while the average rate offered by a traditional brick-and-mortar bank remains at a paltry 0.27%.

If you’re still skeptical about switching to an online bank, consider the facts. Your funds are just as safe stashed with an FDIC-insured online bank as they would be with the bank branch on Main Street, and you’re likely to get better technical support with an online-only bank website and app. Many offer round-the-clock customer support and online chat features that make it easy to resolve issues without needing to visit a branch in person. Along with higher rates, you may end up saving on the cost of the account. With lower overhead costs, online banks typically charge lower fees.

Every month we review and compile the best savings account offers from online banks. Our ranking factors in features such as a higher-than-average interest rate, no minimum balance requirement, and superior ATM access.

1. High Rate: Capital One – 1.70% APY, no minimum balance

360 Performance Savings from Capital OneA consistent rate leader for its deposit accounts, Capital One now offers its 360 Performance Savings. With a 1.70% APY on all balances and no monthly fee, you get a chance to boost your savings uninterrupted. There are no minimum balances required to open or maintain the account, either.

Capital One is able to offer higher rates and lower (to no!) fees on this online savings account compared to traditional in-branch offerings. Still, you can head to a Capital One branch or Capital One Café to open a new 360 Performance Savings account, if you prefer. You cannot use an ATM to withdraw or deposit funds, but you can visit a branch, call the bank or make your own online transfer. You can access all accounts on your mobile device through the Capital One app, as well.

SEE DETAILS 

Member FDIC

2. High Rate: American Express National Bank – 1.70% APY, no minimum balance (and no fees)

High Yield Savings Account from American Express National BankOur sponsored advertiser, American Express National Bank, offers a Personal Savings account, which earns a 1.70% variable APY. The account charges no monthly fees and requires no minimum deposit, making it an affordable account to open. You must fund your account within 60 days of applying for the account, and the FDIC insures your deposits up to $250,000. Overall, the account is a great option for anyone who wants the flexibility of earning a high interest rate on a sum of money you’ve stashed away, minus the withdrawal restrictions of a certificate deposit.

SEE DETAILS Secured

on American Express National Bank’s secure website

Partner Offer

Member FDIC

3. High Rate: Goldman Sachs Bank USA – 1.70% APY, no minimum balance (but no ATM access)

High-yield Online Savings Account from Goldman Sachs Bank USA

Our advertiser Marcus by Goldman Sachs, the consumer bank of Wall Street giant Goldman Sachs, offers a 1.70% APY on deposits. There isn’t a minimum balance requirement to earn the APY and there are no transaction fees. Upon opening the account, you can deposit funds via electronic transfer, wire transfer, or deposit by check. You can get access to your funds via electronic transfer or wire transfer.

Goldman has been investing heavily in Marcus, its online consumer bank. Marcus is already offering some of the best savings accounts and personal loans in the market, and further expansion is expected. The savings account has consistently been paying one of the highest rates in the market. With a 1.70% APY, you can get one of the highest rates in the market from a well-known brand. The maximum deposit is $1,000,000 and deposits are FDIC insured up to the $250,000 limit.

Marcus is accessible both online and via the Marcus mobile app, available only in the Apple App Store.

SEE DETAILS Secured

on Goldman Sachs Bank USA’s secure website

Member FDIC

4. High Rate: Barclays Bank – 1.70% APY, no minimum balance

Online Savings Account from BarclaysBarclays is a large, old British bank, based in London and with more than 325 years of history. Although Barclays is huge in the United Kingdom, it is a challenger brand in the US. Barclays offers savings products with highly competitive rates. These deposits are used to fund their rapidly growing American credit card business. The online savings account has a 1.70% APY with no minimum balance to open and no monthly fees. Your deposits are FDIC insured up to the legal limit. The Barclays website has a good look and feel. And you can have the confidence of keeping your money with one of the world’s largest and oldest universal banks.

SEE DETAILS Secured

on Barclays’s secure website

Member FDIC

5. High Rate: Synchrony Bank – 1.70% APY, no minimum balance, (and ATM access)

High Yield Savings from Synchrony BankSynchrony Bank pays a healthy 1.70% APY. There is no minimum balance requirement and no monthly fee. In addition to the great rate, you can get an ATM card. Most internet-only banks require you to transfer funds electronically, which can take a few days. If you ever need quick access to your funds, the ATM card makes access easy. You might not recognize the Synchrony brand in the banking space, but it is a large, well-capitalized business. Synchrony used to be a part of General Electric (GE), and was spun out as a separate company. Unfortunately, the digital experience is not the best, but they now have a mobile banking app.

SEE DETAILS 

Member FDIC

6. Favorite Online Package: Ally Bank – 1.60% APY, no minimum balance and you can get a free checking account

Online Savings Account from Ally BankAlly is a bank without branches that had been consistently paying high interest rates on savings accounts. While Ally is still offering rates way above what brick-and-mortar banks are offering, it seems this online bank no longer wants to be seen as the online bank with the most competitive rates. The current APY on Ally’s savings account is 1.60%. Although Ally has dropped its rate significantly, we still favor this online bank. It doesn’t require a minimum balance to earn the APY and, even better, you can open a free checking account (also with no minimum balance requirement). This makes access to your savings account incredibly easy – because you can transfer funds online (or via the app) and have immediate access via checks, debit cards and ATMs. With an Ally account, you will have access to their full suite of expanding (and market-leading) products such as CDs, money market account, checking account, and IRA accounts.

SEE DETAILS Secured

on Ally Bank’s secure website

Member FDIC

7. High Rate: Vio Bank – 1.85% APY, $100 to open

High Yield Online Savings Account from Vio BankVio Bank is the online division of MidFirst Bank, a national private financial institution with over $16 billion in assets. Vio Bank was recently created and is not yet as established as Marcus, Barclays, American Express, Synchrony, and Ally Bank. However, this online bank launched its High Yield Online Savings account with a strong APY (at the time of its launch) and has been consistently competitive since it launched. It’s currently offering an outstanding 1.85% APY on all balances. You only need $100 to open the account. You can fund the account via ACH.

There are a few limitations to keep in mind: incoming ACHs take anywhere between two to five business days to post and the online bank may place a hold your ACH for two or three business days. When you’re ready to transfer funds out of the account, you’ll be limited to $5,000 per outgoing ACH. You’ll also be limited to transferring an aggregate monthly total of $20,000 via outgoing ACHs. As is with every other savings account, you’ll also be limited to making six withdrawals per monthly statement cycle. The good news (aside from the high APY) is that Vio Bank doesn’t charge a monthly maintenance fee. Vio Bank also has a mobile banking app where you can conveniently manage your accounts on-the-go. Also, its website is mobile friendly so it should be fairly easy to do your online banking from a smart phone, as well. We think this online bank is very promising and hope it continues to offer one of the best savings account rates in the nation.

SEE DETAILS Secured

on Vio Bank’s secure website

Member FDIC

8. High Rate: CIBC Bank USA – 1.85% APY, $1,000 to open

CIBC Agility Savings - Online Only from CIBC USACIBC Bank USA is the U.S. division of a Canadian based bank. This division was established in 1991 and has since acquired over $27 billion in assets. Currently, CIBC Bank USA is offering an online-only savings account with a competitive APY of 1.85%. You’ll only need $1,000 to open the account. While there isn’t a monthly maintenance fee, you may be charged $10 if you make more than six transactions per statement cycle. CIBC Bank USA does have a mobile banking app, but make sure that you download the app for the U.S., not Canada.

Now until 3/16/2020, new CIBC customers can snag a cash reward up to $400 when opening a new Agility Savings account. To earn the $400 bonus, you’ll need to deposit at least $50,000 into the account within the first 15 calendar days after opening. You must also maintain at least that much for 120 days after those 15 days. If you don’t have $50,000 to deposit, you can earn a $200 bonus instead by making a $25,000 minimum deposit within 15 days after opening. Again, you must maintain at least that much in the account for the following 120 days.

SEE DETAILS Secured

on CIBC USA’s secure website

Member FDIC

9. High Rate: Citizens Access – 1.85% APY, $5,000 minimum balance amount

Online Savings Account from Citizens AccessCitizens Access is the online division of Citizens Bank. This division was recently created to provide the best savings rates to consumers. While the online division is brand new, the bank its backed by isn’t. Citizens Bank has been around for a while and has grown to have over $122 billion in assets. While you need to deposit and maintain a minimum balance of $5,000 to earn the 1.85% APY, you’ll be funding an account that comes with no fees. If your balance happens to fall below $5,000, the APY will drop to 0.25%. One downside to this online-only bank is that they don’t currently have a mobile banking app. This means that you’ll have to do all of your banking through their website. Luckily, their website is mobile-friendly.

SEE DETAILS Secured

on Citizens Access’s secure website

Member FDIC

10. High Rate: Live Oak Bank – 1.85% APY, no minimum to open, no minimum balance to earn APY

Savings Account from Live Oak BankFounded in 2008, Live Oak Bank offers a great spread of financial products, including its high-yield Online Savings account. The Online Savings account earns 1.85% APY on all balances. Plus, interest is compounded daily for faster savings. There’ s no minimum deposit requirement to open, either, nor a monthly fee to worry about.
In addition to online access, Live Oak Bank offers a mobile app.

SEE DETAILS Secured

on Live Oak Bank’s secure website

Member FDIC

11. High Rate: Betterment – 1.83% APY, $10 minimum to open

Betterment Everyday Cash Reserve - Promo Rate from BettermentBetterment is an investment company and one of the best robo-advisors. Since its creation, the mission of this company has always been to empower its customers to make the most of their money. With this mission in mind, the online brokerage decided to offer a high-yield savings account with an outstanding rate. While this account is not like your typical online savings account, it does come up with an outstanding rate. How is it different from other savings accounts? For one, Betterment is not a bank and is not FDIC insured. Fortunately, the company has partnered with a number of banks to offer FDIC insurance to accountholders. Essentially, your funds are deposited with the partner banks and will be insured up to $250,000 at each partner bank. One big benefit that Betterment is currently offering is the ability to opt out of depositing your money at a specific bank.

If you’re comfortable with the way this account is structured, you’ll be rewarded with a 1.83% APY. You only need $10 to open the account and there isn’t a minimum balance amount to earn the APY. This account doesn’t come with any maintenance fees and you can transfer money from the Betterment Everyday Cash Reserve account as many times as you want. If you choose to withdraw money from this account, it’ll be transferred to your linked checking account within 1 to 2 business days. While these types of emerging cash management accounts may not be for everyone, we do feel like they deserve a place on this list due to their outstanding rates.

SEE DETAILS Secured

on Betterment’s secure website

FDIC Insured

12. High Rate: CIT Bank – 1.75% APY, $100 to open

Savings Builder from CIT BankCIT is a very large bank that you probably never heard of. It has more than $50 billion of assets and makes loans (and leases) to middle market companies and small businesses. To fund those loans, CIT operates an internet-only bank that pays some of the highest interest rates in the country.

While CIT isn’t as big as other online banks, they’re currently offering a very healthy APY of 1.75% on their Savings Builder account. You only need $100 to open the account, but you’ll need to meet one of two requirements to earn the high rate. We really like the options that CIT Bank has put in place to earn this high APY. The two ways to continue earning this high rate are:

  1. Make a monthly deposit of $100 or more into this account
  2. Maintain a daily balance of $25,000 or more

Even better: there aren’t any monthly maintenance fees and interest compounds daily. Deposits are FDIC insured.

Now until 5/30/2020, CIT Bank is offering all customers — both new and existing — the chance to earn up to $300 in bonus cash. When you open a new Savings Builder account with a deposit between $25,000 and $49,000, you’ll snag a $150 bonus. The bonus increases to $300 if your deposit is $50,000 or more. You can earn only one bonus. New customers can enroll with the promo code Spring20, while existing customers can enroll through their CIT login.

SEE DETAILS Secured

on CIT Bank’s secure website

Member FDIC

13. Unique Bank + Highest Overall Rate: Fitness Bank – 2.20% APY, $100 minimum to open

Fitness Savings (12,500+ Steps) from FitnessBankFitness Bank is unique and new online bank. It’s a division of Affinity Bank, which has been around since 2002 and has acquired over $318 million in assets. Affinity Bank decided to launch a concept like no other to reward actively fit individuals with the highest APY currently available. While most institutions choose to offer tiered rates based on balance amounts, Fitness Bank offers tiered rates based on the average number of steps you take on a daily basis. To earn the high 2.20% APY, you’ll need to take an average of 12,500 steps or more per day. If you only take an average of 10,000 to 12,499 steps per day, you’ll earn an APY of 2.00% (which is still a great APY). You’ll earn 1.75% APY if you take an average of 7,500 to 9,999 steps per day. Taking an average of 5,000 to 7,499 steps per day will qualify you for an APY of 1.25%. Finally, if you take anywhere between 0 to 4,999 steps on average per day, you’ll only earn 0.50%.

Fitness Bank will track your steps by requiring you to download its Step Tracker app. The bank will then calculate your average steps from the previous month to determine which tier you qualify for. Once the bank determines which rate your activity qualifies you for, you will continue earning that rate for an entire month until the bank recalculates your activity. The activity requirement will be waived for the first month so that you can get your app all set up and start logging in some steps. For this first month, you’ll automatically earn the 2.20% APY.

In terms of actual money, you will need at least $100 to open the account and you’ll need to maintain this balance to waive the $10 monthly maintenance fee. The bank does impose a limit on the amount of money you’re able to transfer in and out of the account via ACH. You cannot transfer more than $15,000 per day in or out of the account. You also cannot exceed more than six certain withdrawals or you’ll incur an excessive withdrawal fee of $10 for each additional withdrawal. In addition to the Step Tracker app, Fitness Bank has a mobile banking app to manage your account.

SEE DETAILS Secured

on FitnessBank’s secure website

Member FDIC

14. High Rate: Elements Financial – 2.10% APY, $2,500 minimum balance amount

Helium Savings 1 year Promo - New Money from Elements FinancialElements Financial was established in 1930 and currently has over $1.6 billion in assets. Its success is most likely attributed to its ability to reach customers nationwide. Anyone can become a member of this credit union just by opening a checking or savings account, or by applying for a loan or credit card. Regardless of the account you choose to open, Elements Financial will open a savings account for you and deposit $5 into the account to get you started.

If you choose to open a savings account with this credit union, you should consider opening the Helium Savings account. The credit union is currently running a promotion on this account with a 2.10% APY that is guaranteed for one year (or 12 statement cycles). Once the promotional period ends, the rate will drop to 1.30% (or whatever the rate is at the time the promotional period ends for you). The account requires a minimum deposit of $2,500 of new money to earn the APY, but you only need a minimum of $100 to open the account. However, you won’t earn interest if you have less than $2,500 in the account. Existing customers don’t qualify for the promotional APY. There aren’t any monthly maintenance fees associated with this account. You’ll be given an Elements ATM card to withdraw money from the credit union’s surcharge-free network. The credit union also has a mobile app that allows you to manage and maintain the account on-the-go.

SEE DETAILS Secured

on Elements Financial’s secure website

NCUA Insured

15. High Rate: BrioDirect – 2.00% APY, $25 minimum balance amount

High-Yield Savings from BrioDirectBrioDirect is powered by Sterling National Bank, which is a large bank in New York with over $29 billion in assets. This online brand recently launched with a high 2.00% APY. You only need $25 to open the account and you’ll need to maintain at least this amount on a daily basis to earn the APY. This account doesn’t have a monthly service fee and can be funded via ACH, wire transfer, or check. There are limitations to the amount of money you can transfer in and out via ACH. BrioDirect limits incoming ACH transfers to $500,000. The bank limits outgoing ACH transfers to $25,000 per transaction and a total of $125,000 per month. You are able to link as many external bank accounts as you’d like to this account. You can also initiate ACH deposits and withdrawals from other banks. You can manage this account online or from Sterling National Bank’s mobile app.

SEE DETAILS Secured

on BrioDirect’s secure website

FDIC Insured

16. High Rate: First Foundation Bank – 2.00% APY, $1,000 to open

Online Savings Account - New Money Only from First Foundation BankFirst Foundation Bank officially launched in 2008, but its leadership has been in the financial services industry since 1990. This bank was established by the same group that leads the Keller Group, a wealth management firm. The bank has grown to acquire over $6 billion in assets. In October, this bank launched an Online Savings Account with a high APY of 2.00%. You’ll need to have a balance of at least $1,000 in order to open that account and you’ll need to maintain that amount in order to earn the high APY. If your balance falls below $1,000, the APY will drop to 1.00%. This account doesn’t have a monthly service fee.

While Regulation D applies to this account, First Foundation Bank will provide an ATM card if you request one from the bank. The bank will reimburse ATM fees from other banks and ATM operators up to $20. There is a limit to the amount of money that you can withdraw. If you’re withdrawing from an ATM, the bank sets a daily limit of $500. The daily point-of-sale limit is $1,500. If you’re transferring money online or via ACH, the daily limit is $5,000 and the monthly limit is $10,000. If you need to transfer more than the preset limits, you’re able to call the bank and request that they increase the limit. The bank allows you to maintain the account online and through their mobile banking app.

SEE DETAILS Secured

on First Foundation Bank’s secure website

Member FDIC

17. High Rate: Prime Alliance Bank – 1.96% APY, $10,000 minimum balance amount

Personal Savings Account from Prime Alliance BankPrime Alliance Bank was established in 2004 to provide financial assistance to local businesses and residents. However, through its online banking platform, it’s now able to reach more customers while keeping that local bank service. Today, it’s grown to acquire over $455 million in assets. While the bank’s Personal Savings Account doesn’t require a minimum amount to open the account, you will need to have at least $10,000 in the account to earn the high APY of 1.96%. If your balance is below the amount, you’ll earn 1.86% APY. This account doesn’t have a monthly service fee. You’re able to request an ATM card and withdraw as much as you need from an ATM, but the account is limited to six certain withdrawals and transfers due to federal regulations. You’re able to maintain the account online or through the bank’s mobile app.

SEE DETAILS Secured

on Prime Alliance Bank’s secure website

Member FDIC

18. High Rates on two savings accounts: Customers Bank – 1.95% or 1.95% APY, $5,000 or $25,000 to open depending on account

High-Yield Savings Account from Customers BankCustomers Bank was established in 1997 and has grown to be known as a “super-community bank” in Pennsylvania, Washington D.C., Illinois, New York, New Jersey, and New England. The bank has over $9 billion in assets, making it a mid-sized bank. Currently, Customers Bank is offering two outstanding rates on two different accounts. Its Digital Savings Account requires a minimum deposit and balance of $5,000 to earn a high rate of 1.95%. This account doesn’t have any monthly fees. You can open this account here.
If you have $25,000 to deposit, the High-Yield Savings Account is a better fit for you. If you can deposit and maintain a minimum of $25,000 into the account, this bank will reward you with a 1.95% APY. You’ll have to maintain this balance to continue earning the high rate. You must fund the account within 30 days of receiving application approval. This account doesn’t come with any monthly fees.
A few items to be aware of: these accounts don’t come with checks or a debit card. Customers Bank does have ACH transfer limitations of $5,000 per day and $50,000 per statement cycle. You can easily open these accounts online and manage the account via Customer Bank’s website or mobile banking app. Deposits are FDIC-insured.

SEE DETAILS Secured

on Customers Bank’s secure website

Member FDIC

19. For High Balance Savers: Digital Federal Credit Union – 1.92%APY, $25,000 minimum to earn APY

DCU Ltd Savings from Digital Federal Credit Union (DCU) Digital Federal Credit Union was chartered in 1979 and today, serves over 800,000 members in 50 states. Membership is open to employees and retirees from over 700 companies, members of select organizations and communities and eligible family members. DCU has branded branches in Massachusetts and New Hampshire, in addition to thousands of CO-OP Shared Branches nationwide.

While there is no minimum deposit requirement, DCU offers its competitive 1.92% APY on Ltd Savings balances of $25,000 and over. Any balances under that do not earn interest, making this a better choice for higher-balance savers. There is no monthly fee.

It’s best to keep your money in this account without much movement, as you’re allowed only one free transfer per month. Each transfer out of the account after that will cost you $25.

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NCUA Insured

20. For Small Balance Savers: Digital Federal Credit Union – 6.17% APY up to $1k

Primary Savings from Digital Federal Credit Union (DCU)Digital Federal Credit Union (DCU) currently offers a nice account for people who are just starting to save. You can earn an APY of 6.17% with their Primary Savings Account. You will only earn that rate on deposits up to $1,000. Once you have more than $1k, you should consider other accounts on this list. It is a credit union – and your deposits are insured by the NCUA up to the legal limit. Anyone can join the credit union by donating to one of their participating organizations such as Reach Out for Schools, which has a membership fee of $10. You’ll be able to join one their participating organizations when you go to open your account with DCU. DCU is also part of a nationwide CO-OP network that allows their members to have access to shared branches and surcharge-free ATMs throughout the U.S.

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NCUA Insured

How to find the right savings account for you

  • Focus on rates, but don’t forget about fees. Snagging the highest interest rate isn’t always your best bet. You also want to ensure the whole account helps you earn consistent returns. For example, a high-rate online savings account might reset to a lower APY after an introductory period. Perhaps the best rate requires a balance that’s too high or too low for your needs. And watch out for monthly fees that could eat into your savings.
  • Compare, compare, compare. Use our savings account comparison tool to calculate how much you could earn with different accounts. You can filter by ZIP code and size, which can help large-balance savers find better options than no-minimum options.
  • Carefully consider CDs. CDs allow savers to earn more on their savings by agreeing to lock up their funds for a set period of time. With CDs, you make your initial deposit at a set APY and wait for the CD term to mature. With most CDs, you can’t touch the original deposit amount before maturity without paying a penalty. Since CDs are less liquid than a standard savings account, they’re good for setting aside money you won’t need to access in the near term. Typically, we recommend using CDs for long-term goals, like accumulating a down payment for a home.

January savings index

We asked 1,041 Americans about their savings habits during the month of January. Here’s what we found:

  • Overall, 39% of Americans increased their savings in January 2020, while 17% of Americans withdrew money from their savings.

  • The number of Americans who added money to savings in January dropped to its lowest point since October 2019.

  • Men increased savings at a higher rate than women: Forty-six percent of men added to their savings account in December, compared with just 33% of women. Meanwhile, 27% of women said they don’t have any savings, versus just 15% of men.

  • Nearly 3 in 10 Gen Zers withdrew money from their savings account in January, a higher rate than all other generations.
  • Consumers with a household income surpassing $100,000 are more than 13 times as likely to have a savings fund than those earning less than $25,000. Additionally, only a quarter of those earning under $25,000 per year saved money during December.
  • Top 3 things Americans saved for in December: general savings (32%), emergencies (26%) and vacation (23%).

Survey Methodology

MagnifyMoney commissioned Qualtrics to conduct an online survey of 1,041 Americans, with the sample base proportioned to represent the overall population. The survey was fielded Jan. 15-20, 2020. Generations are defined as: Generation Z ages 18-22, millennials ages 23-38, Generation Xers ages 39-53, baby boomers ages 54-73 and Silent Generation ages 74 and older.

How the Fed impacts online savings rates

The interest rates offered by banks are tied to the federal funds rate, which is set by the Federal Reserve’s Federal Open Market Committee (FOMC). This includes the deposit account rates that grow your money in savings and other deposit accounts.

When the Fed hikes rates, online banks are far quicker than traditional banks to raise their rates in response. This is clear when you compare average rates from December 2018, just after the Fed ended its two-year-long rate hike streak. The average APY offered by big banks at that time was a paltry 0.26% vs. 2.10% on average for online banks.

We’re well past that rate hike trend in 2020. The Fed delivered three rate cuts in the second half of 2019, followed by a continuing pause on monetary policy. The odds of a rate hike these year are nonexistent, as its more likely we’ll see a rate cut at the end of this pause. The Fed did nothing at its January meeting, and didn’t give much of a clue as to what would cause them to make a change to their current policy stance.

Still, the average APY for online savings accounts continues to tower over brick-and-mortar rates: 1.73% APY for online accounts vs. the stagnant 0.27% at traditional bands.

Unfortunately, the bleak federal funds rate outlook doesn’t bode too well for deposit account rates overall. Banks started dropping their rates when the Fed took a pause at the start of 2019, slashed them even more when actual rate cuts were announced and continue to cut on through 2020. Luckily for consumers, online banks are extremely competitive and need to remain so if they want to maintain their edge.

In the January 2020 Ally Financial earnings call, Ally CFO Jennifer LaClair acknowledged that Ally rates dropped from the peak online savings average rate of 2.20% down to a significantly lower 1.60%. Additionally, they expect CDs to be rolling off around 1.80%. Still, Ally Bank saw record customer growth in the 4th quarter of 2019, despite “increased competition.”

Certainly, more and more online banks or online-only offerings from big banks are popping up. In their earnings call, Discover said much of the same, adding that they have their “product set and the ability to compete,” which is backed up by their high-yield accounts.

Meanwhile, big banks like JP Morgan Chase and Wells Fargo remain uncompetitive. JP Morgan Chase didn’t boost their rates even when the Fed was raising rates, so there was little to do when rates began to go down and they remain low. Wells Fargo expects retail banking deposit costs to decline as their promotional rates expire.

As for what that all means for you, chances are that if you keep your deposits with an online bank, you’ll still get the most competitive rates regardless of a Fed pause or rate decrease. You might see an overall decrease in online savings rates (moreso in the competitive rate-chasing CD space), but they’ll still outperform most brick-and-mortar rates any day.

The bottom line

So what’s a saver to do? At the end of the day, you want the account that makes the most sense for you. Choose the one that lets you save and manage your money in the best ways possible. The most efficient way to consistently grow your money is to open an online savings account. These accounts will offer the best interest rates compared to brick-and-mortar banks, no matter where the federal funds rate goes this year — plus, they’re easily accessible in case of emergency. If you don’t need immediate access to your money and you have some extra cash lying around, open a high-yield CD as a more long-term savings alternative.

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Best of, Credit Cards

Best Credit Cards for Good Credit February 2020

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any credit card issuer. This site may be compensated through a credit card issuer partnership.

If you’re someone with good credit you should be able to qualify for a variety of credit cards. There are cards if you want to earn cash back, earn travel rewards or complete a balance transfer. MagnifyMoney has reviewed our database of over 2,000 credit cards to find cards you can qualify for with good credit. Here are our favorite cards for people with good credit.

Best cash back credit cards for good credit

Cash back credit cards can be great tools to boost your financial position. They basically make your life just a few percentage points cheaper — who wouldn’t want that?

Watch out for the pitfalls with these rewards cards, though. Don’t talk yourself into spending more because you’ll receive cash back. If you opt for a cash back card that offers you up to 5X more points on certain categories, make sure you understand that you often have to activate the bonus categories and set up reminders for yourself if necessary.

Citi® Double Cash Card – 18 month BT offer

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The information related to Citi® Double Cash Card – 18 month BT offer has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Citi® Double Cash Card – 18 month BT offer

Annual fee
$0
Rewards Rate
Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay.
Regular Purchase APR
15.49% - 25.49% (Variable)
Credit required
good-credit
Excellent/Good

Magnify Glass Pros

  • High flat-rate cash back You earn one of the highest flat-rate cash back amounts of any card on the market. This allows you to enjoy high rewards on all your purchases.
  • Simple cash back rewards Earn 2% cash back on purchases: 1% when you buy plus 1% as you pay. No need to deal with changing categories or activation.
  • First late fee waived You won’t have to pay your first late fee. Instead, if you are tardy, use it as a reminder to sign up for autopay

Cons Cons

  • Must pay in full to earn the full reward The only way to enjoy the 2% cash back is to pay your bill in full. This is a great incentive to pay your bill on time so you earn rewards faster.
  • 3% foreign transaction fee This is one card to leave home if you travel abroad a lot — but it’s great as long as you stay within the borders. The foreign transaction fee will negate any cash back you earn from purchases made abroad.
Bottom line

Bottom line

This is one of the highest flat-rate cash back rewards credit cards on the market. It’s a great choice for those who want peace of mind that they’re getting good rewards without fussing with variable rewards categories.

Read our full review of the Citi® Double Cash Card – 18 month BT offer

Best 5% cash back

Discover it® Cash Back

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Rates & Fees

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Discover it® Cash Back

Annual fee
$0
Rewards Rate
Earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases - automatically.
Regular APR
13.49% - 24.49% Variable
Credit required
good-credit
Excellent/Good

Magnify Glass Pros

  • Up to 5% cash back in rotating categories You will earn 5% cash back on everyday purchases at different places each quarter like grocery stores, restaurants, gas stations, select rideshares and online shopping, up to the quarterly maximum when you activate. All other purchases will earn unlimited 1% cash back automatically.
  • Cash back match your first year Discover will match ALL the cash back you’ve earned at the end of your first year, automatically. There’s no signing up. And no limit to how much is matched. This is a great additional bonus for new cardholders that will significantly increase your cash back.
  • No foreign transaction fee Bring your card with you on your adventures abroad. It won’t cost you anything extra. This is one of the only cash back rewards cards to not charge you for using your card abroad.
  • Free FICO® score Your FICO® score is the most common credit score used by creditors, and getting your official score helps you keep tabs on your good credit. Monitoring your score can also help alert you of any fraudulent activity on your card.

Cons Cons

  • You need to opt in for bonus categories Bonus rewards aren’t automatic; you’ll need to remember to log in and manually activate them each quarter. Set a reminder on your phone so you don’t forget.
  • $1,500 quarterly cap on spending eligible for 5% cash back rewards After you hit the quarterly spend, purchases in the 5% category will earn 1% cash back.
Bottom line

Bottom line

The Discover it® Cash Back offers great rewards-earning potential with a $0 annual fee, making this card a good way to earn rewards. Just remember to opt in to the quarterly-changing cash back programs.

Read our full review of the Discover it® Cash Back

Also ConsiderAlso Consider

Visa® Platinum Rewards Credit Card from Nusenda Credit Union

Visa® Platinum Rewards Credit Card from Nusenda Credit Union

This card is a great choice for forgetful people who want cash back rewards. It’s one of the only cards offering revolving categories each quarter that you don’t have to opt in for; you will get these rewards automatically. This card would also be a great choice for those who want cash back rewards and don’t mind working with a credit union.

Best for big spenders in gas

Commuting can be a huge cost, especially if you live far away from your work and don’t use public transportation. If you spend a lot of money on gas each month, consider getting a cash back rewards card that gives you higher rates of return for these purchases. It’s like having an instant coupon for gas with you all the time.

Fort Knox Federal Credit Union Visa® Platinum Card

Fort Knox Federal Credit Union Visa® Platinum Card

Annual fee
$0
Rewards Rate
Unlimited 5% cash back on gas and 1% cash back on all retail purchases.
Regular Purchase APR
11.50% - 18.00% Variable
Credit required
good-credit

Good

Magnify Glass Pros

  • 5% cash back rewards on gas This is one of the best cash back rewards bonuses we’ve seen on any card. It does not change quarterly like with most cash back rewards — you will always earn cash back rewards at this rate.
  • Fair APR If you need to carry a balance from month to month, rest assured: This card comes with a fair interest rate. Although we recommend paying each statement in full, this card can be a good option if you qualify for the lowest APR.
  • No annual fee All these great rewards come with no annual fee. If you pay off your bill in full each month to avoid interest charges, it’ll essentially be free money.

Cons Cons

  • 1% foreign transaction fee This is a great card to have on hand for road trips, but be aware that if you cross the border, your cash back rewards will be reduced.
  • Credit union membership required You don’t need to be a member to apply for the card; however, if you are approved, you’ll need to open and fund a savings account with a minimum of $5.
Bottom line

Bottom line

This card offers great value for big spenders in gas. If you frequent the pump, this card can earn you a nice cash back rate. This card offers other great features such as no annual fee and a fair interest rate. If you don’t mind working with a credit union, this card can benefit your needs.

Best for big spenders at U.S. supermarkets

Groceries can be one of your biggest budget-busters, especially if you have a large family, a specialized diet, or live in certain parts of the country. The good news is there are certain credit cards that offer great rewards for grocery purchases at supermarkets. Here’s our top pick for a credit card to maximize your cash back rewards at U.S. supermarkets.

Blue Cash Preferred® Card from American Express

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Blue Cash Preferred® Card from American Express

Regular Purchase APR
14.49%-25.49% Variable
Intro Purchase APR
0% for 12 months
Intro BT APR
0% for 12 months
Annual fee
$95
Rewards Rate
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 1% Cash Back on other purchases.
Balance Transfer Fee
Either $5 or 3% of the amount of each transfer, whichever is greater.
Credit required
good-credit
Excellent/Good

Magnify Glass Pros

  • Intro 0% for 12 months (after that, a 14.49%-25.49% Variable APR applies) This can come in handy if you make a purchase and can’t pay it off immediately.
  • 6% cash back at U.S. supermarkets You’ll earn a whopping 6% cash back on U.S. supermarket purchases — the highest level of cash back rewards we’ve heard of. Sadly, you’ll only earn this much on the first $6,000 worth of purchases each year. Remaining purchases will still earn 1% cash back.
  • 6% cash back on select U.S. streaming services
  • 3% cash back at U.S. gas stations and transit. There’s no limit to the amount of cash back rewards you can earn at U.S. gas stations and on transit including taxis/rideshare, parking, tolls, trains, and buses. That means you can enjoy the higher cash back rate all year long.

Cons Cons

  • $95 annual fee This card charges an annual fee, but it will still be worth the fee if you spend at least $1,583 at U.S. supermarkets or $3,166 in gas each year.
  • Foreign transaction fee of 2.7% of each transaction after conversion to US dollars. If you use your card outside of the country, it’ll cost you unless you’re buying gas or groceries — then you’ll either be breaking even or earning 3.3% cash back rewards on groceries. It’s best to leave this card at home if you travel abroad.
Bottom line

Bottom line

This card offers a fantastic cash back rewards program for grocery spenders. By using this card for grocery purchases, you will see the most rewards. Although it carries a $95 annual fee, this card will easily pay for itself with big spenders in groceries.

Best travel rewards credit card for good credit

Travel can seem like a pipe dream to a lot of people. Even if you do have the cash, it still stings to see that much hard-earned money leaving your bank account. But with a travel rewards credit card, you can have a sort of de facto savings account specifically for travel. And with a sign-on bonus like the one for our top pick, you can be jet-setting somewhere fun and interesting as soon as a few months from now.

 Chase Sapphire Preferred® Card

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The information related to Chase Sapphire Preferred® Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Chase Sapphire Preferred® Card

Annual fee
$95
Rewards Rate
2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases worldwide
Regular Purchase APR
17.49% - 24.49% Variable
Credit required
good-credit
Excellent

Magnify Glass Pros

  • Rewards are worth more when redeemed for travel You will receive 25% more value on points that are redeemed for travel via Chase Ultimate Rewards®. This raises the effective rate of rewards to 1.25 and 2.5 points.
  • Higher rewards for dining and travel You’ll earn 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases worldwide. This is great for travelers and foodies.
  • 1:1 point transfer to frequent flyer programs You can transfer points to partner frequent flyer programs at a 1:1 ratio. This is a great way to accumulate points faster at your favorite airline.
  • Travel protections This card comes with trip cancellation/interruption insurance, travel and emergency assistance services, auto rental collision damage waiver and more. These features add a layer of protection when traveling abroad.

Cons Cons

  • Points are worth slightly less when transferred to partners You’ll miss out on 25% more value if you transfer points to travel partners like airlines and hotels. The points will still transfer on a 1-to-1 basis, but they won’t be worth as much as using the Chase Rewards portal.
  • Annual fee There is a $95 annual fee, which is typical of travel rewards cards. However, if you spend enough on this card, you will come out ahead.
Bottom line

Bottom line

This card is the gold standard for frequent travelers. The Chase Ultimate Rewards portal helps you maximize your rewards even further and get you closer to covering the cost of a flight or hotel stay using rewards. If you’re a frequent traveler, this card will earn you a great rate.

Best airline credit cards for good credit

One of the biggest travel expenses is airfare. Even if you don’t have specific goals to travel regularly, surprises like cross-country family emergencies or get-togethers can take a big bite out of your budget.

Before signing up for an airline-specific card, it’s helpful to know what airline options you have near you. Different airlines tend to congregate more in different parts of the country; you won’t see any Alaska Airlines planes if you live in Maine, for example.

Southwest Rapid Rewards® Plus Credit Card

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The information related to Southwest Rapid Rewards® Plus Credit Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Southwest Rapid Rewards® Plus Credit Card

Annual fee
$69
Rewards Rate
2 points per $1 spent on Southwest® purchases and Rapid Rewards® hotel and car rental partner purchases. 1 point per $1 spent on all other purchases.
Regular Purchase APR
17.49% - 24.49% Variable
Credit required
good-credit
Excellent

Magnify Glass Pros

  • Flexible points redemption options You can use your points to book hotel stays and car rentals and to buy gift cards or merchandise.
  • 3,000 bonus points every year You’ll get a bonus 3,000 points tacked onto your account each year on your card’s anniversary. This is a great added bonus that makes this card exceptional.
  • Travel protections This card comes with lost luggage reimbursement, baggage delay insurance, travel accident insurance, auto rental collision damage waiver and more. These features add a layer of protection when traveling abroad.

Cons Cons

  • $69 annual fee Many travel credit cards will waive their annual fee for the first year — but not this one. Otherwise, the $69 annual fee is typical and the rewards you earn should outweigh the fee.
  • Foreign transaction fee This card charges 3% of each transaction in U.S. dollars for purchases made abroad. It’s ironic that a travel card would include this fee. If you can, leave this one at home if you travel outside of the country. Also consider other airline cards that don’t charge a foreign transaction fee.
Bottom line

Bottom line

We recommend this card for people who frequently fly on Southwest Airlines and want to earn a higher rewards rate on those purchases. This card will allow you to earn more points on Southwest flights that will allow you to maximize your rewards. If you don’t fly Southwest and often fly abroad, this card isn’t for you.

Best for United frequent flyers

UnitedSM Explorer Card

The information related to UnitedSM Explorer Card has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

UnitedSM Explorer Card

Annual fee
$0 Intro for First Year, then $95
Rewards Rate
Earn 2 miles per $1 spent at restaurants, on hotel stays and on purchases from United. 1 mile per $1 spent on all other purchases.
Regular Purchase APR
17.99% - 24.99% Variable

Magnify Glass Pros

  • Priority boarding Snag your seat before everyone else and avoid the rush to get on the plane.
  • Free checked bag You and one companion traveling on the same reservation will each receive their first standard checked bag free.
  • Hotel benefits This card comes with luxury hotel and resort collection privileges including room upgrades, complimentary daily breakfast for two, early check-in, late checkout and other amenities at more than 900 luxury hotels and resorts worldwide.
  • Travel protections This card comes with lost luggage reimbursement, baggage delay insurance, travel accident insurance, auto rental collision damage waiver, trip delay reimbursement, trip cancellation/interruption insurance and more. These features add peace of mind when traveling.

Cons Cons

  • Annual fee of $0 intro for first year, then $95 Many travel credit cards will waive their annual fee for the first year — including this one. After that first year, the annual fee kicks in. However, the annual fee amount is typical and the rewards you earn can outweigh the annual fee.
  • Limited Star Alliance partners You can only use your points to book travel on United Airlines or their partners in the Star Alliance, including such airlines as Lufthansa and Air China. This is a negative if you don’t travel on any of these airlines.
Bottom line

Bottom line

This card offers a good rewards program for United Airlines flyers. You will enjoy more miles on United purchases and will also get nice perks that make flying less stressful. We recommend this card if you’re a frequent United Airlines traveler.

Best for American Airlines frequent flyers

Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®

The information related to Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard® has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®

Annual fee
$99, waived for first 12 months*
Rewards Rate
Earn 2 AAdvantage® miles for every $1 spent on eligible American Airlines purchases*
Regular Purchase APR
17.74% - 25.74%* (Variable)
Credit required
excellent-credit
Excellent/Good

Magnify Glass Pros

  • Cheaper mile redemptions You’ll pay up to 7,500 fewer miles to fly to certain destinations with American Airlines. This can help you maximize your miles.
  • 10% bonus points each year You’ll get a 10% bonus on all miles you’ve redeemed for flights at the end of each year. This is a great added bonus that will increase your miles earned.
  • First checked bag free You won’t have to leave the things you really want to bring at home in order to save money. First checked bag is free
    on domestic American Airlines itineraries for you and up to four companions traveling with you on the same reservation.
  • Discount on in-flight purchases You can save money when dining on American Airlines flights. Receive a 25% savings on eligible in-flight food and beverage purchases when you use your card on American Airlines flights.
  • Travel protections This card comes with lost baggage protection, travel and emergency assistance, worldwide travel accident insurance, worldwide car rental insurance, trip cancellation and trip protection, and more. These features allow you to save money from taking out additional insurances when traveling. However, Citi announced in June 2019 they’d be discontinuing a variety of travel benefits on select cards, effective Sept. 22, 2019.
  • Earn a $125 American Airlines Flight Discount You can earn this discount by spending $20,000 or more on purchases using this card each card membership year.

Cons Cons

  • Limited “oneworld” partner airlines You can only book travel on American Airlines or their partner airlines in the “oneworld alliance.” Other member airlines include British Airways and Qantas, for example.
Bottom line

Bottom line

This card offers solid benefits and ways to maximize your mile earnings. It’s an important card in any traveler’s wallet and can be a great benefit to frequent American Airlines flyers. Take advantage of the cheaper miles redemption to maximize your miles.

Delta SkyMiles® Gold American Express Card

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on American Express’s secure website

Terms Apply |  Rates & Fees

Delta SkyMiles® Gold American Express Card

Annual fee
$0 introductory annual fee for the first year, then $99.
Rewards Rate
Earn 2X Miles on Delta purchases, at restaurants worldwide and at U.S. supermarkets and 1X Mile on all other eligible purchases.
Regular Purchase APR
17.24%-26.24% Variable

Magnify Glass Pros

  • Free checked bag Save money and hassle by bringing all the stuff you need with you on your travels in a free checked bag.
  • Priority boarding Be the first on the plane so you don’t have to worry about luggage space or a long line.
  • No foreign transaction fee This card does not charge a fee for purchases made abroad. That means you can fly outside of the U.S. and not be charged additional fees like most other cards.
  • Discounts on Delta purchases You will enjoy several discounts when flying Delta. Receive a 20% savings in the form of a statement credit after you use your Card on eligible Delta in-flight purchases of food, beverages, and audio headsets.
  • Travel protections This card comes with Global Assist Hotline, car rental loss and damage insurance, and more. These features are a great way to have an added layer of safety when traveling.

Cons Cons

  • Limited SkyTeam partner airlines You can also use your Delta miles to book travel within the SkyTeam Alliance, a relatively limited network with other members like Air France and Aeroméxico.
Bottom line

Bottom line

This card offers great benefits for those who fly Delta. You will enjoy a wide selection of benefits from lounge access to in-flight savings that make traveling more comfortable and cheaper. We recommend this card for frequent Delta flyers who want added discounts when they travel.

Best luxury credit card for good credit

Even though traveling is fun, it can still be a stressful experience. Between fighting throngs of crowds and cramming into airline seats, it can be enough to drive even the most ardent travel-lover insane sometimes.

The good news is you may avoid all of that with a luxury credit card. These credit cards could give you an across-the-board better travel experience, from the moment you arrive at the airport until you make it back home. Here is our top pick for a luxury credit card.

The Platinum Card® from American Express

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on American Express’s secure website

Terms Apply |  Rates & Fees

The Platinum Card® from American Express

Annual fee
$550
Rewards Rate
5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel and 5X Membership Rewards® points on prepaid hotels booked on amextravel.com.
Credit required
good-credit
Excellent/Good

Magnify Glass Pros

  • Free access to over 1,200 airport lounges Get away from the crowds in premium airport lounges all over the globe. This is a great feature that will allow you time to decompress before or after flights.
  • $200 toward airline fees and incidental purchases each year Amex will refund you up to $200 in the form of a statement credit per year on purchases from a qualifying airline you select ahead of time. This includes things like meals, checked bag fees, and more.
  • Statement credit for Global Entry or TSA Precheck : Amex will refund you every four-and-a-half years for TSA Precheck ($85) or every four years for Global Entry ($100) fees. If you were thinking of using these services, it’s a great idea to take advantage of this rebate and enjoy a quicker check-in when flying.
  • Great rewards program Earn a fantastic rewards rate of 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel and 5X Membership Rewards® points on prepaid hotels booked on amextravel.com. It’s more than double what many other travel cards offer.

Cons Cons

  • High $550 annual fee Luxury doesn’t come cheap. If you spend a lot on travel, though, this card can still pay for itself. Make sure this card is right for your needs.
Bottom line

Bottom line

This card is a stand-out favorite for globetrotting jet-setters who prefer a bit of comfort while traveling. Watch out for the $550 annual fee, though. If you spend a lot on travel each year, however, this card might actually save you money and will allow you to travel in luxury.

Best 0% Intro APR credit cards for good credit

If you really need to buy something moderately expensive but don’t have the cash for it yet, 0% Intro APR purchase cards can be a great way to go. They’re basically like free short-term loans. These cards are similar to 0% Intro balance transfer cards, but not all balance transfer cards also offer you the ability to make new purchases with the introductory APRs.

It’s recommended to only use these cards to buy things that you absolutely need rather than a new big-screen TV. For example, I used a 0% Intro APR card to purchase the very computer I’m typing this on. I didn’t have $800 to spend at the time, but within a couple of months I had made enough money to pay it off in full — without having to pay a penny of interest. These cards offer great opportunities to better your life, without the extra cost — if you can pay off the card before the promo period is over.

Capital One® Quicksilver® Cash Rewards Credit Card

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Capital One® Quicksilver® Cash Rewards Credit Card

Regular Purchase APR
15.49% - 25.49% (Variable)
Intro Purchase APR
0% intro on purchases for 15 months
Intro BT APR
0% intro on balance transfers for 15 months
Annual fee
$0
Rewards Rate
1.5% Cash Back on every purchase, every day
Balance Transfer Fee
3%

Magnify Glass Pros

  • Intro 0% APR for 15 months If you need to make a big purchase, you’ll appreciate the purchase APR offer of 0% intro on purchases for 15 months. After, a 15.49% - 25.49% (variable) APR applies. The card also offers 0% intro on balance transfers for 15 months. After, a 15.49% - 25.49% (variable) APR applies. The balance transfer fee is a reasonable 3%.
  • Good flat-rate rewards Earn 1.5% Cash Back on every purchase, every day.
  • Sign-up bonus One-time $150 cash bonus after you spend $500 on purchases within 3 months from account opening.
  • No annual fee and no foreign transaction fee The annual fee for this card is $0, so as long as you don’t carry a balance and incur interest charges, all the rewards you earn are net cash back in your wallet. And you can travel abroad knowing that the foreign transaction fee is none, so you won’t be charged an extra fee for each transaction you make.

Cons Cons

  • There are cards with higher rewards rates Though the Capital One® Quicksilver® Cash Rewards Credit Card offers a solid cashback rate, there are flat-rate cards that offer up to 2% cash back, and cards that offer up to 5% cash back in rotating quarterly categories.
Bottom line

Bottom line

With a strong 0% Intro APR offer on both purchases and balance transfers, as well as good ongoing rewards, the Capital One® Quicksilver® Cash Rewards Credit Card offers cardholders an excellent value.

Read our full review of the Capital One® Quicksilver® Cash Rewards Credit Card.

Citi Simplicity® Card - No Late Fees Ever

Read Full Review

The information related to Citi Simplicity® Card - No Late Fees Ever has been independently collected by MagnifyMoney and has not been reviewed or provided by the issuer of this card prior to publication.

Citi Simplicity® Card - No Late Fees Ever

Intro BT APR
0% for 21 months on Balance Transfers
Balance Transfer Fee
5% of each balance transfer; $5 minimum
Regular Purchase APR
16.24% - 26.24% (Variable)
Credit required
good-credit
Excellent/Good

Magnify Glass Pros

  • Intro 0% for 21 months on Balance TransfersEnjoy no interest charges for nearly two years in a row — that’s one of the longest 0% BT APR intro periods in the business. After the intro period, the APR goes to 16.24% - 26.24% (variable). The card also offers an intro APR of 0% for 12 months on purchases. After the intro period ends, the regular purchase APR is 16.24% - 26.24% (variable).
  • No late fees Citi offers one of the most unique benefits in the credit card world — no late fees. Of course, it isn’t a free pass; you still need to pay your bill on time or risk a huge credit score drop from the negative mark on your credit report.
  • Choose your bill due date To make it as easy as possible on your finances, you can choose your own due date. Get paid in the middle of the month? No problem. Prefer to pay it right away? Pay it at the beginning of the month.

Cons Cons

  • 3% foreign transaction fee If you’ll be traveling abroad, leave this card at home — otherwise it’ll end up making your trip 3% more expensive.
Bottom line

Bottom line

This is one of the longest 0% BT APR intro periods in the credit card market for balance transfers and offers a fantastic opportunity for those who need to finance a large purchase — as long as you pay it off before the period expires. Use this card as a means to rid yourself of high interest charges while you pay off your bills.

Read our full review of the Citi Simplicity® Card - No Late Fees Ever

Learn more

You don’t need a perfect credit score to qualify for most financial products. You’ll still get access to virtually all of the things an 850 credit score would unlock as long as you have a credit score of at least 760.

Good credit scores don’t happen by accident. Whether you deliberately aimed for your score or not, you have good financial management skills. However, this isn’t enough to guarantee your approval for a large number of financial products.

It’s actually possible to have a good credit score yet still be a high financial risk. For example, your credit score doesn’t take your salary into account. You could have a perfect credit score yet be unemployed with no income, in some cases.

When you apply for financial products, banks will look at your entire situation beyond just your credit score. Each bank will have their own approval criteria, and you might not pass one of them even if you have a good credit score.

Take heart, however; in general, you will be approved for most good financial products and services if you have a good credit score. But if the bank is very picky or something uncommon has happened to you (such as a recent job loss), it’s not surprising to be rejected.

Potential creditors don’t like to see a string of recent credit inquiries on your report because it might be a sign that you’re going on an out-of-control credit binge. Your score will be docked a few points per credit inquiry. This is a relatively small cut compared to more major transgressions like late payments and foreclosures, however.

When you have a poor credit score (600-648), you need every point you can get. The difference between a poor and a fair credit score is just 48 points; you need to do everything you can to gain those points and move up into the next bracket. Having a hard credit pull on your credit report will set you back even longer.

If you’ve got good credit, though, you don’t need to worry as much. You have 150 points between 700 and the maximum score of 850. That’s plenty of room to pay for small dings on your credit. You can have a hard inquiry on your credit report and still have a good credit score, unless you’re starting with a borderline good score of 700-705.

You’ve worked hard getting your score to this point, now how do you keep it there? Luckily, it’s not hard; basically, continue doing the good things you’re already doing.

Paying all of your statements on time and in full is one of the best things you can do to maintain your high credit score. A single late payment on your mortgage could set you back 60 points or more, downgrading you from good credit to average. Make sure all of your debt accounts are set up on autopay to avoid this potentially costly error.

Credit utilization (the percentage of available credit you’re using) is also one of the biggest factors in determining your credit score. The less available credit you’re using, the better. In general, a credit utilization ratio of 10% or less will boost your score the most. This means that you’ll have a credit card balance of $1,000 or less for each $10,000 of credit you have available to you.

A few minor factors will also boost your credit score, but not as much as having a good payment history and a low credit utilization ratio. Keep credit inquiries to a minimum. In order to avoid a slew of inquiries that will be reflected in your credit score, make sure companies use soft pulls if you need to shop around for the best interest rates.

Also consider keeping your oldest credit cards open and closing any newer ones you’re not using. This will increase your average credit age. In general, an average credit age of five years or more is considered best and will boost your credit score.

You don’t want to be juggling around a ton of cards you’re not using. Closing old cards sounds like a good idea until you consider one factor: It may ding your credit score.

Creditors like to see that you can effectively handle credit accounts over long periods of time. That’s why average credit age is one factor included in credit scoring models.

If you close out an old card, your average credit age might drop. This would cause a corresponding dip in your score. The effect wouldn’t be huge (not as large as a late payment, for example), but it could be there nonetheless, especially if your average credit age is five years or less (over five years is the optimal average credit age).

That’s why most experts recommend keeping your oldest credit card open. If you want to juggle fewer accounts, close any newer ones that you’re not using. Of course, if your oldest credit card charges an annual fee and you’re not using it, then go ahead and close it anyway. Paying an annual fee for a card you’re not using likely outweighs any benefits from keeping the card open for the sake of boosting your average credit age.

Furthermore, if you close your old credit card before you apply for a new card, it’s possible that your credit score will drop enough that your application will be rejected, especially if you have a borderline good credit score. In this case, it’s better to wait until after you’ve applied and been approved for the new credit card before closing your old card, if you decide to do so.

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