Tuesday, May 31, 2022

The Penny Hoarder

The Penny Hoarder

Medicare Vision Coverage: How to Save Money on Eyeglasses and Exams

Posted: 31 May 2022 11:00 AM PDT

If you're enrolled in Medicare, routine vision care isn't guaranteed.

Some privately administered Medicare Advantage plans cover eyeglasses and eye exams.

But Original Medicare — which provides health insurance to about 37.7 million Americans — doesn't pay for your new eyeglass frames or an annual vision exam.

So how do you know, in your own case, what's covered and what's not?

Whether you're new to Medicare and wondering what to expect at your next eye exam, or you're a long-time beneficiary trying to save money on glasses, our guide to Medicare vision coverage and affordable eye care is here to help.

How Medicare Covers Vision

If you have a serious eye disease like cataracts or glaucoma, Medicare Part B will generally pay for treatment.

But that's not the case for routine exams and eyeglasses.

Most private Medicare Advantage plans provide some coverage for glasses and routine vision tests. Original Medicare does not.

Here's how it breaks down.

Original Medicare

Original Medicare does not cover routine vision exams, eyeglasses or contact lenses. Lasik surgery isn't covered either.

You're on the hook for the full cost unless you have a separate private vision care policy or secondary insurance like Medicaid.

Original Medicare does cover eye care related to illness or injury, including cataract surgery and glaucoma screenings. More on that shortly.

Medicare Advantage

Nearly all Medicare Advantage plans — which are administered by private insurance companies like United Healthcare and Cigna — include some routine vision coverage.

However, vision benefits are pretty modest — plans offer about $160 worth of eyewear and eye exam coverage a year on average, according to an analysis by the Kaiser Family Foundation (KFF).

Medicare Advantage plans also restrict the vision benefits they offer, including:

  • how often you can replace glasses and/or contact lenses.
  • how often the plan will pay for eye exams.

For example, 47% of Medicare Advantage plans limit beneficiaries to one pair of eyeglasses every two years, according to the KFF analysis.

Finally, to get these vision benefits, you will need to use certain eye care professionals and services within your specific Medicare Advantage plan network.

Need a refresher on how Medicare works? Check out answers to seven frequently asked questions. 

Medicare Coverage for Other Eye Treatments and Conditions

By law, both Original Medicare and Medicare Advantage must cover the same basic vision services for eye diseases and chronic conditions.

If you have an eye disease that causes low vision, such as macular degeneration or glaucoma, Medicare Part B will cover screening tests and standard treatment.

You'll pay 20% of the Medicare-approved amount for these covered treatments and services after meeting your Part B deductible.

Medicare Part B covers 80% of the cost for: 

  • Certain treatments for serious eye conditions, including micro-invasive glaucoma surgery.
  • Cataract surgery. Medicare will pay to implant a conventional intraocular lens. It will also cover one pair of standard-frame eyeglasses or a set of contact lenses after cataract surgery.
  • Detached retina treatment.
  • Treatment for certain dry eye conditions.
  • Eye exam for people with diabetes to detect glaucoma and diabetic retinopathy.
  • Annual glaucoma test for people at high-risk of developing the disease or with a family history of glaucoma.
  • Some tests and treatments for age-related macular degeneration.
  • An eye prosthesis (artificial eye) for patients with absence or shrinkage of an eye due to birth defect, injury or surgical removal.
Pro Tip

The services above are covered whether you have Original Medicare or a Medicare Advantage plan. 

Some diseases and conditions — such as lupus and shingles — can affect your vision even though they aren't traditional eye diseases. Medicare Part B covers treatment for your eyes if you have one of the many conditions on this list from the U.S. Centers for Medicare & Medicaid Services.

How to Save Money on Vision Care Costs

Eyeglasses and routine vision exams are pricey for Original Medicare beneficiaries.

Fortunately, several programs and organizations offer free or discounted eyeglasses and exams for older adults.

Here are some of the best ways to reduce your out-of-pocket costs on routine vision care when you're enrolled in Medicare.

How to Save Money on Eye Exams

The national average cost of a comprehensive eye exam is $95, according to All About Vision and other sources, but the figure can vary from $50 to $200.

Here are a few ways to keep more money in your pocket without forgoing important eye care.

Discounts for AAA and AARP Members

AAA and AARP members can receive discounts at participating LensCrafters and other retail locations nationwide.

Members of AAA and AARP can get the following discounts at LensCrafters:

  • 30% off comprehensive eye exams.
  • 50% off a complete pair of eyeglasses (frame and lenses) and prescription sunglasses. Valid in-store and online.
  • 10% off disposable contact lenses.
  • 30% off non-prescription sunglasses.

AARP members also receive these discounts through other providers:

  • $55 comprehensive eye exam at participating independent eye doctors (Use this tool to find a location near you).
  • $10 off best in-store offer on a complete eyewear purchase at Target Optical.
  • 10% off contact lenses at Target Optical.
  • $10 off non-prescription sunglasses at Target Optical.
  • 30% off a complete pair of glasses at Glasses.com (Use code RP_30OFF_GL at check out).
Pro Tip

To receive your AAA or AARP member discount, make sure to present your membership card at participating locations. 

Costco and Walmart

Retailers like Costco and Walmart offer optical centers with affordable pricing on eye exams and glasses.

At Walmart, eye exams average about $65, but prices vary by location.

Like Walmart, Costco eye exam costs vary, but you can expect to pay anywhere from $50 to $100 for an exam.

Both retailers also offer a wide selection of eyeglasses in the $35 to $75 range.

EyeCare America

EyeCare America is the public service arm of the American Academy of Ophthalmology.

Its Seniors Program provides comprehensive eye exams and up to one year of followup care for any eye condition diagnosed during the initial exam.

These services are free to qualifying older Americans. It's one of the only national programs that offers free eye exams for people on Original Medicare.

To qualify for the EyeCare America Senior Program, you must:

  • Be age 65 or older.
  • Be a U.S. citizen or legal resident.
  • Not belong to an HMO or have eye care benefits through the VA.
  • Not have seen an ophthalmologist in three or more years.

Just a heads up: This program does not cover the cost of eyeglasses.

You can see if you qualify and apply for the program by filling out this form.

Lions Club International

The Lions Club can pay for eye care and eye exams at local club locations and community events. Some locations also provide eyeglasses.

For more information, reach out to your local Lions Club chapter.

Optometry Schools and Senior Discounts

Students at optometry schools sometimes provide free or discounted eye exams during clinics.

These undergraduates are closely supervised by faculty members, so it can be a cheap way to score a routine vision test.

You can use this tool to search for schools in your area — although the eye exams and care provided vary from school to school.

Another option is asking local vision care providers if they offer any senior discounts or in-house financing plans. Make sure to call ahead and ask before scheduling an appointment.

Older people with low incomes may also qualify for free or reduced eye exams at their local county health department.

Finally, numerous local nonprofits offer free eye exams throughout the year. Call United Way's 211 service to see if a program exists near you. Or Google "free eye exams near me."

A man tries on eyeglasses.

Where to Get Free or Cheap Eyeglasses

Affordable eyeglass lenses and frames are easy to find online or at large retail stores like Walmart and Costco.

There is also a program that provides free eyeglasses to those who qualify — but be prepared to jump through some hoops first.

OneSight Vision Voucher Program

The OneSight Vision Voucher program helps people in need receive free eyewear if they're not able to cover the cost of eyeglasses with insurance.

Here are the steps you need to take:

  1. Get a referral letter from a nonprofit organization verifying your visual and financial need for glasses. The letter must be written on company letterhead and include the Tax ID# of the nonprofit organization. Recommended nonprofits include churches, the Lions Club, Prevent Blindness, Red Cross and United Way.
  2. You'll need a valid prescription from an eye doctor. If you don't have a prescription that is less than two years old, you can ask the onsite doctors at a Luxottica Retail location if they can donate a free eye exam.
  3. Take your referral letter and prescription from an eye doctor to a participating Luxottica Retail location — which includes LensCrafters, Target Optical and Pearle Vision corporate stores — to get your free pair of eyeglasses.

Check out OneSight's website to learn more about its vision voucher program.

Cheap Online Eyeglass Retailers

Buying eyeglasses online is a cheap alternative to paying hundreds of dollars for a fancy pair at your optometrist's office.

According to a recent survey from Consumer Reports, people who bought glasses online paid a median of $91, while those who shopped in-store spent $234.

Some online retailers, like Zenni Optical, offer single prescription glasses starting at just $7. You'll pay more for special coatings, progressive lenses and other add-ons.

Many of these sites offer virtual "try on" features and come with convenient return policies so you can find frames and lenses that work for you.

We compiled a list of the 22 best places to score cheap eyeglasses online. 

Does It Make Sense to Buy Private Vision Insurance on Medicare?

Medicare beneficiaries can purchase private vision insurance to help offset the cost of eyeglasses and routine eye exams. According to KFF, medicare patients spent an average of $230 out of pocket on vision care in 2018.

Plans are generally inexpensive — usually $10 to $15 a month — and premiums usually don't increase with age like other types of health insurance.

However, private insurance monthly premiums, copayments and deductibles may not make it worthwhile.

You should carefully examine any private vision insurance plan benefits and costs before signing up. Make sure the plan actually saves you money on eyeglasses and routine exams.

Need help deciding how to handle out-of-pocket Medicare vision costs? Your local State Health Insurance Assistance Program can offer free personalized Medicare benefits counseling. 

Does the VA or Medicaid Cover Eyeglasses and Eye Exams?

Medicare may not be your only form of insurance.

If you are also enrolled in Medicaid or Veterans Affairs health benefits, you may qualify for free or low-cost vision care.

Medicaid Vision Coverage

Medicaid will cover eye exams for adults ages 21 and older in most states — but not all.

Medicaid is a federally funded health insurance program for people with low incomes. It's administered at the state-level, so each state determines its own vision benefits and limitations.

According to KFF:

  • At least 42 states offer some coverage for optometrist services.
  • At least 33 states offer some coverage for eyeglasses.

In states that do provide vision benefits, basic eye exams are covered. Prescription glasses with basic frames are also usually covered, but each state has specific caps.

Copays for eye exams with Medicaid are affordable, usually $15 or less.

Research your specific state's Medicaid vision coverage or contact your local Medicaid office for more information. Speaking with a local Medicaid office and your individual plan provider is the best way to understand your specific vision benefits.

Once you're clear on your coverage, make sure your eye doctor accepts Medicaid before scheduling an eye exam.

VA Vision Coverage

If you have VA health care benefits, the program will cover your routine eye exams and preventive vision testing.

Talk to your VA primary care provider or contact your nearest VA medical center or clinic for more information.

Veterans can also qualify for free eyeglasses or contact lenses by meeting one of the following criteria:

  • Have a disability linked to your military service for which you're receiving VA disability payments.
  • Are a former prisoner of war,
  • Were awarded a Purple Heart.
  • Receive benefits under Title 38 United States Code (U.S.C.) 1151.
  • Receive an increased pension because you're permanently housebound and in need of regular aid.
  • Experience vision problems caused by another  illness — such as stroke or diabetes — for which you're receiving VA care.
  • Suffer from geriatric chronic illnesses (long-lasting illnesses that affect the elderly).

The following groups can also qualify for free eyeglasses through the VA:

  • Veterans with significant functional or cognitive impairments.
  • Veterans with a vision impairment severe enough that it interferes with their ability to participate in their own medical treatment.
  • Veterans who have service-connected vision disabilities rated 0%.

Rachel Christian is a Certified Educator in Personal Finance and a senior writer for The Penny Hoarder.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

This posting includes an audio/video/photo media file: Download Now

Hybrid vs. Electric: Which Eco-Friendly Car Is Right for You?

Posted: 31 May 2022 09:00 AM PDT

Gas prices are at an all-time high, averaging more than $4 a gallon across the U.S. The easy solution is to just drive less, but that's not practical for most families. Instead, many drivers are considering switching to a hybrid or an electric vehicle to cut down their fuel costs — but how can you know which is right for you?

In this guide, we'll explore hybrid vs. electric vs. plug-in hybrid cars — their advantages, disadvantages and how to determine which is best suited to your needs.

What Is a Hybrid Car?

A hybrid car (or SUV or truck) is a vehicle that relies on both a gas-powered motor and an electric motor. You'll still have to fill up at the gas station; in fact, running the gasoline-powered engine is the only way to power the electric motor.

Unlike true, 100% electric vehicles, hybrid models only have small lithium-ion batteries. When charged, these offer a short range of electric driving, but most of the driving done in a hybrid will come from the gas-powered internal combustion engine.

While driving, you can recharge a hybrid's electric battery through regenerative braking. Every time you apply the brakes, the hybrid extracts and stores that energy and reuses it without gas power.

So while traditional gas cars are most efficient on the highway, with less stop-and-start driving, hybrid vehicles are actually more efficient in the city and in stop-and-go rush hour traffic, as they collect and reuse energy every time you brake.

The Toyota Prius is the most recognizable example of a hybrid, but nowadays automakers offer many of their popular gas-powered models as hybrid variants. Popular hybrid models include the Honda Accord Hybrid, the Toyota Camry Hybrid, the Hyundai Santa Fe Hybrid and the Subaru Crosstrek Hybrid.

What Is an Electric Vehicle?

An electric vehicle (EV) runs solely on electric power generated by a high-voltage battery pack. Because there's no gas to back up the electric motor if the battery runs out of charge, EVs are made with much larger lithium-ion batteries than hybrids, allowing for much longer ranges.

Unlike hybrids, fully electric vehicles do not have tailpipe emissions.

Charging an electric vehicle takes a lot longer than filling up a tank of gas. EVs generally require anywhere from six to 12 hours for a full charge. Most EVs do offer DC fast charging, which can charge a battery to roughly 80% in as little as 30 minutes, but doing this often leads to faster battery degradation.

To charge an EV at home, you'll need to have a professional install charging infrastructure that can cost several thousands of dollars. On the flip side, most EVs are eligible for a significant ($7,500) one-time federal tax credit, which more than makes up for the cost of the installation.

Some of the most affordable electric cars include the Nissan Leaf, the Chevrolet Bolt EV, the Hyundai Kona Electric and the Ford F-150 Lightning.

Save money on EVs: Here are six tips for buying a used electric vehicle.

What Is a Plug-In Hybrid Vehicle?

A plug-in hybrid vehicle (PHEV) has a gas-powered engine and an electric motor powered by a battery. PHEVs have large enough batteries that drivers can rely on electric power alone without the help of the gasoline engine. When the charge runs out, the vehicle switches over to the gas engine.

For this luxury, PHEVs require charging, just like electric cars. (Remember: The batteries in hybrid vehicles are charged by the gas engine and don't need to be charged in between drives.) Owners of plug-in hybrids will need to install the same charging infrastructure at home as they would for a traditional electric vehicle.

Popular PHEVs include the Hyundai Ioniq, the Toyota Prius Prime, the Chrysler Pacifica Hybrid and the Ford Escape PHEV.

Pros and Cons of Hybrid Cars


Pros
  • Can travel long distances
  • Affordability
  • No infrastructure needed
  • Regenerative braking

Cons
  • Fuel reliance
  • Lack of power
  • Cost to operate

Hybrid vehicles have been on the market for several decades and continue to grow in popularity. In fact, in 2021 hybrid sales jumped 76% in the U.S., with a total of 801,550 sold, accounting for 5% of all light-duty vehicle sales, according to Reuters.

So what is drawing more people to hybrid models and what drawbacks should drivers anticipate?

Hybrid Vehicle Advantages

  • Can travel long distances: Because hybrids rely on gas power, they can travel long distances without causing any electric range anxiety. When they run out of fuel, all it takes is a couple of minutes at the gas station to fill the gas tank back up.
  • Affordability: Though more expensive than gas cars, hybrid vehicles are cheaper than plug-in hybrid and fully electric cars.
  • No infrastructure needed: Electric vehicles and plug-in hybrids require the installation of charging infrastructure at your home, which is impossible for anybody who rents. But hybrid owners don't need to worry about any special infrastructure.
  • Regenerative braking: Regenerative braking allows hybrid vehicles to capture energy to power their electric motors. This makes city driving much more efficient than it is for cars powered solely by an internal combustion engine.

Hybrid Vehicle Disadvantages

  • Fuel reliance: Though hybrids draw power from electric motors, they still very much need their gasoline engine, which means drivers are still reliant on fossil fuels and their surging prices.
  • Lack of power: Hybrid engines are famously low power. If you're looking for a potent engine that offers fast acceleration, you'll be disappointed by any hybrid models you test drive.
  • Cost to operate: Not only will you still have to pay for gas when you drive a hybrid, but you should also be prepared for higher than average maintenance costs. Though they may need less regular maintenance than gas-powered automobiles, it'll cost more when you do visit the auto shop.

Pros and Cons of Electric Cars


Pros
  • All-electric range
  • No routine maintenance
  • Tax breaks

Cons
  • Coal reliance
  • Charging infrastructure
  • Slow charging times
  • Cost

Though hybrids are the most popular form of electrified vehicle, all-electric vehicles are gaining traction. Sales were up 83% in 2021, with a total of 434,879 EVs sold in the U.S. And with several automakers pledging to largely transition to EVs within the decade, they're only going to grow in popularity. But there are advantages and disadvantates to them.

Let's take a more in-depth look at the biggest benefits and drawbacks of electric vehicles.

Electric Vehicle Advantages

  • All-electric range: Drivers looking to cut out fossil fuels in the wake of the growing climate crisis can now get EVs that offer hundreds of miles of range on a single charge. And in doing so, they'll have zero tailpipe emissions and offer tremendous savings on fuel.
  • No routine maintenance: EVs famously don't require oil changes and air filter replacements. While you still need to rotate the tires, EVs largely don't need scheduled maintenance, which could save you hundreds of dollars each year.
  • Tax credit: Most EVs still qualify for the federal tax credit ($7,500) when bought new, and many states and cities offer more local incentives to EV buyers.

Electric Vehicle Disadvantages

  • Coal reliance: While it's true that EVs don't have tailpipe emissions, they still rely on electricity, which is largely generated by burning coal. This process is also harmful to the environment.
  • Charging infrastructure: If you want to charge your EV at home, you will need to pay to have charging infrastructure installed. This can cost several thousands of dollars and isn't an option for renters or city dwellers — unless they're lucky enough to live near a public charging station or in an apartment building that offers one.
  • Slow charging times: While most EVs offer DC fast charging in roughly 30 minutes, the typical time it takes to recharge an EV's battery 100% is 6 to 12 hours. This makes an EV impractical for a longer commute or road trip.
  • Cost: Though there are economy options like the Nissan Leaf, electric vehicles are typically more expensive than hybrids and plug-in hybrids. They are also roughly 25% more expensive to insure than gas-powered vehicles.

Pros and Cons of Plug-In Hybrid Vehicles


Pros
  • Versatility
  • Tax credit
  • Low maintenance cost

Cons
  • Fossil fuel reliance
  • Charging infrastructure
  • Slow charging times
  • Less interior space

As a combination of hybrid models and EVs, PHEVs would seem to offer the best of both worlds. And while there are a lot of pros to driving a plug-in hybrid, PHEVs have a fair share of cons as well.

Let's take a more in-depth look at the biggest benefits and drawbacks of plug-in hybrid vehicles.

Plug-In Hybrid Advantages

  • Versatility: Plug-in hybrids can rely solely on electric power, but when you need to go longer distances they can seamlessly transition to gas power. If you regularly travel short distances and can charge at home between trips, you might be able to go days or even weeks without relying on gasoline, which could mean months between fill-ups at the pump.
  • Tax credit: Though plug-in hybrids are not fully electric cars, they are still eligible for various tax credits and incentives.
  • Low maintenance costs: Despite being somewhat complex (with both electric motors and internal combustion engines), plug-in hybrids, like EVs, are cheaper to maintain.

Plug-In Hybrid Disadvantages

  • Fossil fuels reliance: To truly take advantage of the convenience offered by plug-in hybrids, you have to be OK with depending on traditional gasoline. That makes PHEVs less earth-friendly than EVs, and it also means you've got to budget for rising gas prices.
  • Charging infrastructure: Because you still need to plug in your PHEV to charge the battery pack, you'll need to pay to have charging infrastructure installed at your home. That makes PHEVs inaccessible to renters who aren't lucky enough to have access to a charging station.
  • Less interior space: Because of the multiple powertrain components (larger battery, electric motor and gas motor), interior space often suffers in plug-in hybrids. Whether it's less passenger volume or cargo space, PHEVs make you sacrifice space somewhere.

Hybrid vs. Electric vs. Plug-In Hybrid: Which Is Right for You?

Hybrids, electric vehicles and PHEVs all offer drivers a cleaner alternative to traditional gas-powered cars. But determining which one to drive off the dealer lot depends largely on your own budget, living situation and driving needs.

Buy a Hybrid If…

  • You often travel long distances.
  • You don't have a place at home to install charging infrastructure.
  • You're shopping for an energy-efficient vehicle on a budget.

Buy an Electric Vehicle If…

  • You want a truly 100% electric-powered car.
  • You won't use your vehicle for longer distances (or have another car you can use for road trips).
  • You want to take advantage of the federal tax credit.
  • You have a place to install charging infrastructure or have easy access to charging stations.

Buy a Plug-In Hybrid If…

  • You want an electric-powered vehicle but have range anxiety about true EVs.
  • You have a place to install charging infrastructure  or have access to charging stations.
  • You want to "test the waters" before committing to a fully electric vehicle.

Frequently Asked Questions (FAQs) About Hybrid vs. Electric Cars

Still have questions about buying a hybrid vs. electric vs. plug-in hybrid? Wondering what the best deal is as you consider all options? See if we have the answers you're looking for.

Is a Hybrid Car Better Than Electric?

A hybrid car offers several advantages over electric: There's no range anxiety associated with a hybrid, and you don't have to install charging infrastructure at home. However, you still have to purchase fuel for your hybrid, and hybrid cars aren't as eco-friendly as EVs. For some drivers, a hybrid will make more sense while others would be better suited for an electric vehicle.

What Are the Disadvantages of a Plug-In Hybrid Car?

Like an electric vehicle, a plug-in hybrid vehicle still requires charging (though not as long as an EV) to be able to tap into electric power. You'll also still have to pay for gas on occasion. On top of that, a plug-in hybrid is more expensive than a traditional hybrid car.

What Are the Disadvantages of Electric Cars?

The biggest disadvantage of electric cars is the range. Most electric vehicles currently offer 200+ miles on a single charge, but once the battery is depleted, it can take 8+ hours to recharge. While many models are available with DC fast charging, this process still takes 30 minutes or more and doesn't get a full charge. This makes EVs unviable for road trips.

Electric vehicles are also expensive (but most still come with a $7,500 tax credit) and require the installation of charging infrastructure at home.

How Long Will an Electric Car Last?

Electric vehicles are just as durable as their gas-powered counterparts, however, electric car batteries don't last forever and can be expensive to replace. Though EV batteries can last anywhere from 10 to 20 years or 200,000 miles, it will cost thousands of dollars to replace yours once it finally dies. As a show of faith in their product, most manufacturers offer a warranty on their batteries for at least eight years and 100,000 miles.

The best part? They don't require the same routine maintenance that gas cars do. You won't need to worry about oil changes or air filter replacements.

How Much Money Can I Save with an Electric Car?

The electricity required to power an EV is nearly $14,500 cheaper than it would be to fuel a gas-powered vehicle over 15 years, according to a study conducted by the U.S. Department of Energy's National Renewable Energy Laboratory and the Idaho National Laboratory. That's roughly $1,000 in fuel savings each year.

But electric cars have large upfront costs. They cost more than traditional gas vehicles, and if you want to charge your EV at home you need to have the charging infrastructure professionally installed. However, over the life of the EV, you'll experience great savings: a federal tax credit, no fuel costs and no routine maintenance costs.

You will likely pay more in monthly insurance premiums and your electric bill will go up, but these are nothing compared to the savings from not buying gas or paying for oil changes.

How Much Money Can I Save with a Hybrid Car?

Hybrid cars are more efficient than traditional gas-powered vehicles, especially in city driving. The more you drive in the city or in high-traffic conditions, the more you can expect to save on high gas prices over time with your hybrid.

However, hybrid cars tend to cost more money than their gas-powered counterparts, so it may take a while to recoup your investment.

Contributor Timothy Moore is a writer and editor in Cincinnati. He focuses on banks, loans and insurance plus automotive stories for The Penny Hoarder. His work has been featured on Debt.com, The Ladders, Glassdoor, WDW Magazine, Angi and The News Wheel.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

This posting includes an audio/video/photo media file: Download Now

40 Summer Jobs for Teens with Better Pay Than Ever

Posted: 31 May 2022 07:00 AM PDT

It's almost time for summer, which means it's time to think about summer jobs. If you're a teen looking for work — or if you've got a teen in your house who should be looking for work — here's a list of 40 summer jobs for teens.

Teen jobs traditionally pay minimum wage or a little higher depending on the work and where you live. But the "great resignation" has sent many employers scrambling to find people, so there's never been a better time for teens to find good-paying jobs.

We found that average hourly wages for typical teen jobs are up from 2020, in some cases significantly. Two examples: $17 per hour up from $14.38 for landscaping and groundskeeping workers and $14.22 per hour up from $11.84 for house cleaners. You can do the math.

40 Best Summer Jobs for Teens

What will you do for work this summer? Here are the 40 best summer jobs for teens. We've divided the jobs into categories to help you quickly find the type of job that might be most interesting to you.

Online: Technology, Marketing, Video Games

Entrepreneurial-minded teens can easily find online work. Most sites require a parent or guardian to give permission. Also, with these jobs, teens need their own bank account and access to high-speed internet.

1. Video Game Tester

Who better to play and test video games than the age group to which most of the games are marketed? Testing doesn't pay much, but if teens are already playing video games, why not get paid at the same time?

2. Review Songs

Another no-brainer for teens: listen to music and get paid to write a review and offer a rating. Websites like playlistpush.com offer up to $12 per song and even younger teens can earn money for their feedback.

3. Test Apps and Products

Teens with an interest in social media and influencing can get some experience in the biz by working as a product tester. Sites like productreportcard.com and userfeel.com allow anyone over the age of 16 to earn money testing products or apps. The best part — all from home!

How to Get the Jobs

The challenge with these jobs is not qualifying or making a good impression, but staying on task and self-motivated. None of the online jobs will earn a teen large amounts of cash, but with some dedication, screen time can be made lucrative.

Care: Children, Houses, Pets and Plants

Babysitting is a classic teen job, but there are a lot more opportunities for teens to earn money by helping friends and neighbors care for pets and even houses!

4. Babysitter

As a babysitter, you'll watch babies or children while their parents are away. Becoming a family's regular sitter can often put a lot of money in your bank account, since many parents need full-time child care while their kids are out of school all summer.

One way to start is by being a mother's helper; this is a good option for younger teens who can watch or play with children while a parent is in the home getting other work done. Care.com is one site where you can connect with people looking for babysitters nearby (keep in mind that as a teen under 18 you will need parental permission to register on the site).

Consider getting CPR training and taking a safe sitter course — parents may be inclined to pay you more when you have completed them. Both are available through the Red Cross. This Care.com calculator can estimate what you can expect to be paid for your services.

A petsiiter pets two whippet dogs.

5. Pet Sitter

A gig watching and feeding pets while the owners are away can last anywhere from a long weekend to a few weeks or more.

Although pet sitting took a hit with pet owners working from home the last few years, now that people are back in the office, it is on the rise. According to the National Association of Professional Pet Sitters, there are ways to enhance your pet care business in a post-pandemic world.  One woman told us that she can earn about $200 to $300 in a weekend.

6. Dog Walker

Is pet-sitting too much of a commitment for you? You can still make money working with animals by walking dogs while families are at work or on vacation. You must love dogs — and be willing to scoop up their poop!

Dog walker pay rates vary, but you can comfortably ask for anywhere between $14 and $17 an hour, based on Indeed.

7. Plant Sitter

It's not a very high-paying gig, but every dollar counts! If you have a green thumb, you can water plants while owners are away. Instead of saying "I charge $10 an hour" for this one, expect that a family will offer a fixed rate of something like $25 to $50 for taking care of their plants over a period of time.

8. Teach and Help Older Folks

Teens are digital natives and they can get paid to pass that knowledge on to older people. Similarly, retired folks might need a little extra help with projects that require youthful strength and agility, like moving furniture around the house, or retrieving items from the attic. Helping people in their homes requires vetting and trust, but this kind of job could be lucrative for a dependable teen.

How to Get the Jobs

Many of these jobs are filled through word-of-mouth; a friend of your parents might be going on a trip and needs someone to feed the cat. But be proactive! Put up flyers, put out the call on social media and make sure the adults you know are aware that you are ready and able to work.

Making and Creating: Turn Your Talents Into Cash

If you can make something that's beautiful or useful, you've got yourself a money-making opportunity. And be sure to read our guide to starting a freelance business for more info on pricing and making a profit.

9. T-Shirt Designer

Have a knack for art and design? You can turn your ideas into T-shirts with print-on-demand services, which allow you to sell without owning a print shop. Some companies to check out include Merch by Amazon, Printful, Printify, Spreadshirt and Redbubble.

Make sure you have original ideas and don't neglect your product descriptions. The amount of money you can make depends on the service you use, but one woman told us she typically makes between $2 and $3 per shirt on Spreadshirt.

10. Seamstress or Tailor

If you can make and alter clothes, you've got a skill you can monetize. Alter pants for friends and family, or sell original clothing items on Etsy or at flea markets and craft shows.

Tailors, dressmakers and custom sewers can make $17.03 an hour, according to the Bureau of Labor Statistics (BLS).

A woman sands down wooden chairs.

11. Woodworker

Make chairs, crafts, walking sticks or other wood items and sell them on Etsy or in person. Put up signs in your local area announcing your talent, and seek out commissions.

The BLS indicates woodworkers make about $17.65 an hour.

12. Photographer

Whether you take (and sell) stock photography, start a small business taking photos of weddings or babies, or even sell your travel photos, there are plenty of opportunities to make money with your camera.

A photographer can make $18.73 an hour, according to the BLS, but selling travel photos can bring in up to $100 per shot.

13. Graphic Designer

With websites like Fiverr, Upwork and Freelancer (age limits vary), you can turn your design skills into cash. If you know how to use Canva and enjoy creating visually appealing art for logos and social media, this is a great way to earn money over the summer.

How to Get the Jobs

You're creating your own work, so the big hurdle here is promotion. Tell your friends and family, post your work to social media and continue to promote your efforts every day.

Writing: A Penny — Or More — For Your Thoughts

You don't have to be a novelist to get paid for your words. Here are other ways to make money with writing.

14. Article Writer

Plenty of markets offer opportunities for teens to pitch and sell articles, personal essays and other work to online magazines and websites. Visit the websites you read every day and look at their submission guidelines.

This guide provides information on how you can start as a freelance writer, and this post includes platforms for freelance writers.

Payment options for freelance writing will vary depending on experience and the individual site's payment model.

15. Transcriptionist

If you are skilled at quickly transcribing audio or decoding somebody's handwriting, look for transcription jobs online. As a general transcriptionist, you will be asked to listen to audio files and type out what you hear.

In addition to a computer and high-speed internet connection, you may need a foot pedal to control the audio playback.

You can find work through companies, but you can also ask your parents to see if they know anyone who needs transcription done. One woman told us she has earned up to $25 an hour as a transcriptionist.

16. Proofreader

Do you know when — and how — to use commas? Can you quickly identify misspelled words? Look for proofreading companies that hire teens, or find an adult who needs a big document proofread with a careful eye. Payment varies widely and depends largely on experience.

17. Survey Taker

Websites like surveyjunkie.com pay you for your opinions. You'll have to share information about your habits and likes and dislikes, but it's confidential and teens 16 years or older can sign up. The payout for each survey is small, but it's easy work to do from the comfort of home.

How to Get the Jobs

Follow submission guidelines for articles and blog posts. Apply for proofreading and transcription work directly, or tap into your networks to find paying gigs.

Cleaning: Gather Your Disney Singing Birds and Get Ready to Scrub

It's a dirty job, but somebody has to do it — and get paid for it.

A teenager cleans dishes.

18. House Cleaner

Got a knack for getting dirt off surfaces? Look for house cleaning jobs in your area, or set out as a house-cleaning entrepreneur. The BLS indicates that maids and housekeeping cleaners make about $14.22 an hour.

19. Pool Cleaner

Get the scum out of pools so people can enjoy their swims. Look for companies hiring pool cleaners, since you'll need special training to handle the chemicals involved. Although the BLS does not track pool cleaners specifically, Indeed salaries indicate that pool cleaners can make about $17 an hour.

20. Car Washer

Offer to wash cars for your friends' parents or other adults you know, or see if the local car wash is accepting applications. Indeed Glassdoor indicates that you'll make about $13 an hour with this gig.

21. Janitorial Work

Cleaning toilets may not sound like fun, but it's a paying job. Workers can expect to make $13.87 per hour.

How to Get the Jobs

Find out whether the business prefers in-person applications or online applications, and apply accordingly. As with many teen jobs, if you know someone who already works there, your application might get a little boost.

Teaching: Train Scholars, Earn Dollars

Tutoring and teaching younger children is another classic teen job. Whether you are a pianist or a pre-calc expert, there is a tutoring opportunity for you.

22. Tutor

You can find tutoring opportunities in nearly every subject, from pre-algebra to French to conversational English. This post outlines several companies that hire tutors, but check the requirements carefully to make sure you are not ineligible based on your age.

Older teens can help prep younger ones for the PSAT and the SAT. And if you're musically inclined you can even teach kids about Middle C, Every Good Boy Does Fine and other fundamentals. Find music teaching gigs on Wyzant.com. Payment will vary, with companies paying anywhere from $9 to $25 per hour.

23. Athletic Coach

Do you have swimming skills? Help kids improve their butterfly strokes or simply overcome their fear of putting their heads in the water. Or maybe you're practically a professional horseback rider? Start young children on a lifelong love of horses by working as a riding instructor.

Visit your local swimming pool and local stables to ask about job opportunities. Fitness trainers and instructors can expect to make about $18 per hour, according to the Bureau of Labor Statistics, but that number is probably pretty high for a teen in an informal gig. A swim coach can make an average of$15 an hour based on location and experience, according to Indeed.

How to Get the Jobs

Some of these jobs, like swimming and riding instructor, require applications and interviews. Others, like piano teacher or art teacher, you can create yourself. If you are putting out your shingle as the best oboe or algebra teacher in town, work on promoting yourself to people you know, putting up flyers in places where parents gather and making sure everyone on social media knows that you are ready to teach! 

The Great Outdoors: With the Sun on Your Face and Dollars in Your Pocket

If you like spending your summer days outside, there are plenty of ways to enjoy the beautiful weather and earn money at the same time. Try one of these outdoor jobs:

A teenager mows a lawn.

24. Lawn Maintenance and Landscaping

Mow grass, pull weeds and do whatever it takes to keep a lawn looking tidy. You can also plant bushes and plan gardens, if you know enough about plants or have the experience. You can work with a professional landscaping company or create an entrepreneurial opportunity by talking to family friends, putting up flyers and advertising yourself.

The BLS says that landscaping and groundskeeping workers make about $17 an hour.

25. Lifeguard

Wear a whistle and help kids practice water safety in and around swimming pools. CPR and lifeguard training are musts for this one, as you never know when a pool accident could happen. Lifeguards make about $13an hour, according to the BLS.

26. Agricultural Work

Depending on what crops grow in your area, you might find all kinds of agriculture and harvesting opportunities. Consider picking apples (you might get to make or serve doughnuts and cider to orchard visitors) or even detasseling corn. You can expect to make about $14.27 per hour, according to the BLS.

27. Construction Work

Look for contractors in your area that hire teens. Some types of construction jobs are only available to people over 18, but others are appropriate for younger teens. The United States Department of Labor's Occupational Safety and Health division has resources about safety. The BLS indicates that construction laborers and helpers can expect to make $18.04 an hour.

28. Camp Counselor

Sing camp songs, teach crafts and become a kid's hero for the summer. These kinds of jobs fill up far in advance, so if you missed the application period for this summer, put it on your to-do list for next year.

One woman recommends finding a job through word of mouth, social media (think: park district websites and Facebook), Craigslist, your local YMCA, community organizations and churches. The BLS classifies camp counselors as recreation workers who can lead games, arts and crafts, music and sports, among other activities. They make about $14.27 per hour.

29. National Park Worker

If you live near a national park, you might already be aware of the summer jobs available there. If not, visit the park's website to look for job opportunities, or check out the National Park Service's Pathways Program, which includes paid internships for high school students.

How to Get the Jobs

Go online and look for application instructions. As we noted earlier, having a friend who works there can often help your application.

Working for The Man: Would You Like Fries With That?

Love 'em or hate 'em, the following jobs are summer staples for teens. With nationwide worker shortages in hospitality, customer service, and the restaurant industry, teens can take advantage of higher pay than ever before and signing bonuses.

A teenage cashier smiles at the camera while standing behind the cashier counter.

30. Retail

Stock shelves, help customers find merchandise and ring up purchases. These jobs often come with a nice employee discount, so look for retail gigs at your favorite stores. Retail workers make about $14.03 per hour, according to the BLS.

31 Food Service

Prepare food, serve food, ring up customers' orders, bus dishes and clean up afterward. Server jobs at nicer restaurants tend to come with the best tips, but here's how to give yourself the best chance of earning more tips no matter where you work. Workers in this industry can make about $12.50 per hour according to the BLS.

32. Receptionist

Answer phones, direct calls and greet people when they enter the building. The receptionist is often the first person guests see or speak with when they contact a company, so you have to be ready to present yourself professionally at all times. Receptionists typically earn about $14.40 an hour.

33. Movie Theater Worker

Take tickets, serve popcorn, clean popcorn off the floor and become very familiar with every summer blockbuster. Wages will vary here, but according to BLS, a movie theater ticket salesperson might earn $8 an hour, while a concessionist can make $11-$12 an hour, depending on location and company.

34. Library Assistant or Page

Libraries offer additional programming in the summer when kids are out of school, so they need seasonal workers to staff those programs. Teens interested in books, reading and helping people could make great library assistants. Pay per hour is between $12-$15 and some libraries welcome ages 15 and up.

How to Get the Jobs

Visit websites and look for application instructions, or walk into each place of business to ask about open positions. If someone hands you a paper application, be ready to fill it out right away; have your Social Security Number memorized and carry copies of your resume — and a pen — with you.

Reseller: Becoming a Retail Arbitrage Expert

"Retail arbitrage" is when someone buys an item and then resells it at a profit. Believe it or not, this is a perfectly legit way to make money.

35. Book Reseller

If you've already started college and have textbooks to sell, you can make good money reselling them to sites like BookScouter or Amazon Textbook Buyback. If you don't have textbooks to sell, start scouring used bookstores or yard sales for volumes in good condition, and then sell them online at a profit.

Read our book reselling guide for tips on which books to resell, and which to leave on the shelf. You can make up to $750 a month just reselling books.

A woman uses her cell phone to photograph clothes she is selling online.

36. Clothing Reseller

Yes, you can resell clothes just like books and toys! Read our guide to consignment selling and then start cashing in on fashion. Also check out this list of 17 stores that buy used clothes and how to get the best cash offer. The amount of money you make will vary.

37. Gift Card Reseller

Here's one you might not have thought of: buying discounted gift cards online and reselling them at face value. We've got both a guide for buying discounted gift cards and a guide for reselling gift cards for you. Again, how much you can make will vary.

38. Used Video Game Reseller

If you grew up on computers, you probably have a vast collection of video games at home. Read how one TPH staffer made over $100 by taking old games to GameStop.

39. Flea Market Worker

Want to sell in person? Get a table at a flea market and start selling used items, handmade crafts and other treasures. Read our flea market guide to get the most out of your wares. Depending on the flea market rules, you might need to work with an adult — or someone over 18 — but that doesn't mean you can't share in the profits, which will vary.

40. Yard Sale Organizer

Plenty of families want to have summer yard sales but balk at the hassle of setting everything up, pricing the items and managing the table for an entire weekend. Why not offer your services as a yard sale organizer? You guessed it: we've got a yard sale guide to get you started.

Make the Most of Your Summer Job Experience

Whatever you choose to do this summer, use it to start — or bulk up — a resume. Job experience builds important skills like time management and organization, and experience of any kind is better than none. No matter what career you choose or what you choose to study, a summer job as a teen is a great place to start.

Contributor Veronica Matthews writes on lifestyle topics from North Carolina. Reporting from former contributors Nicole Dieker and Steve Gillman is included in this report. 


This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

This posting includes an audio/video/photo media file: Download Now

How to Become a Wedding Officiant and Preside Over ‘I Dos’

Posted: 31 May 2022 05:10 AM PDT

As weddings crank back up following an extended pause during the pandemic, demand is increasing for officiants to help all those couples tie the knot.

Officiating a wedding is a rewarding role that requires research, preparation — not to mention ordination. It's also a fun and lucrative side gig.

Here's the lowdown on how to become a wedding officiant so you can start presiding over all those joyous "I dos."

How to Become a Wedding Officiant

Before you can start presiding over weddings and signing marriage licenses, you'll need to take a couple important steps.

Get Ordained

Becoming ordained is usually simple, and many officiants get ordained online.

Some state laws are more strict when it comes to online ordinations, so you may have to pursue other options based on where you live. The cost of getting ordained ranges from free to around $50. You may also have to pay a small fee for a certified copy of your ordination document to prove it.

Organizations like American Fellowship Church, Rose Ministries, Universal Life Church and Universal Ministries offer online ordination. Though many of these organizations have religious connotations in their titles, anyone is welcome to get ordained. "Becoming a minister with the AMM does not require you to hold any particular spiritual belief," American Marriage Ministries says on their website.

Check Local Rules and Register if Needed

Marriage is the domain of the state. So even if you're ordained to officiate weddings, you must comply with local rules and regulations.

States — and even some counties — have different rules about who can perform a wedding ceremony. Check your state's website or speak with your local county clerk's office.

"Some (places) are easier to register in; some do not require you register; some only recognize 'ordained' religious persons and judges; some notaries too can do weddings," says Chaplain Jerry Schwehm, moderator and president of the American Association of Wedding Officiants.

The majority of states don't require you to register. However, 14 states do require registration through some government entity – whether it's the health department in Hawaii or the county clerk in Virginia.

Here's a complete breakdown of the states that require wedding officiant registration and those that don't.

Pro Tip

Online weddings were illegal in most states prior to the pandemic but some states relaxed those rules in 2020. American Marriage Ministries has a list of states with their rules about online weddings.

If you're not recognized by the state where the ceremony is taking place, "you're risking the legal standing of the bridal couple's marriage – which can affect their health insurance, home ownership, taxes and more," said David F. Jackson, senior administrative counsel for First Nation Church & Ministry in New York.

For more state-by-state information, check out American Marriage Ministries' interactive map of state licensing requirements.

Beware of Virginia

If you're looking for an easy place to perform a wedding ceremony, you may want to steer clear of Virginia, says Yvonne Doerr, who officiates weddings in Maryland and Washington, D.C.

Since 2010, most county clerk offices in Virginia have denied online-ordained ministers the right to perform marriages.

"Some places frown on just online ordinations without any specific education or training involved. Although states are hesitant to say who is or who is not a clergyman, most prefer a main line type ordination process, some training, some form of screening and authorization," Doerr says.

Still keen? You'll need to lay out every detail of the service — where the church is located, when it meets, the size of the congregation — before a judge, who will determine whether or not you can serve as the wedding officiant.

How to Prepare to Officiate a Ceremony

Long before the wedding day arrives, you should meet with the couple to get to know them and learn what kind of tone they want to set for their ceremony – everything from the vows to the dress code.

"I really try to make each service unique and reflect the couple," Doerr says. "I collect stories and little details from each of the couples and weave them into the service.

She added: "I really believe in the sentiment behind the vows. I try to set a tone that helps the couple really hear and reflect on the vows as they're taking them. I want the couple and the guests to remember the service and what was said — and not just remember the bride's dress and the cake."

Before the wedding, you should also get familiar with the wedding venue as well as the other wedding professions, including the wedding DJ and wedding planner, for whatever coordinating is necessary to ensure a smooth event.

One more important thing: Make sure to rehearse!

Responsibilities After the Ceremony

Once the ceremony is over, the officiant needs to make sure they've taken care of all the required paperwork.

The couple should have received the marriage license prior to the ceremony, but they'll also need a marriage certificate.

Most states require both spouses, the officiant, and at least one or two witnesses to sign the marriage certificate after the ceremony. The officiant will then file the signed certificate in the county office within a few days, with the couple receiving a certified copy soon thereafter.

How Much Can You Earn?

Wedding Officiant Insider says the average pay for wedding officiants is $350.

Doerr says she "would never consider officiating a career" because you'd never get enough work.

She usually charges between $300 and $500, depending on the size of the wedding and whether there's a rehearsal. She spends an average of five to 10 hours on each wedding.

Could You Become a Marriage Officiant?

Anyone considering becoming an ordained minister should recognize that their role is more than just reciting the "I do's," says Jackson. You'll be managing a major event in people's lives, one you'll want to treat with dignity and respect.

What qualities should wedding officiants have? Schwehm recommends knowing how to prepare a speech, how to keep proper records and a calendar, and understanding the ins and outs of bookkeeping and scheduling.

He also advises that officiants stay on top continuing education and keeping up with new quotes and poems and new styles of ceremonies.

You have to find it fun, or it's not the job for you.

"I really enjoy the officiating. It is wonderful to be a part of such a happy occasion," said Doerr. "I've met some really neat people in the process too."

Alison Johansen is a freelance writer for The Penny Hoarder. Senior writer Robert Bruce contributed to this article. 

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

This posting includes an audio/video/photo media file: Download Now

Best Savings Accounts for June 2022

Posted: 31 May 2022 04:50 AM PDT

Some of the links in this post are from our sponsors. We provide you with accurate, reliable information. Learn more about how we make money and select our advertising partners.

When it comes to savings accounts, where do you even begin?

Do a quick search, and you'll find many savings accounts with different options with varying percentages, monthly fees and minimum requirements. Not to mention the many types of financial institutions themselves — online-only, banks and credit unions — and it can get overwhelming fast.

Keeping this in mind, we've rounded up the best savings accounts — including ones at online banks and traditional brick and mortar — of 2022. We've included top information you need to know before opening or switching an account.

And before we move on, yes, we recommend that Penny Hoarders have a savings account — keeping your cash in a box under your bed is not a solid, or safe, financial plan. We want you to feel empowered so you can get the best proverbial bang for your buck.

We've ranked the very best savings accounts available today to help get you started.

10 Best Free Savings Accounts for June 2022

Account Minimum Balance APY

Synchrony Bank High-Yield Savings Account
None
0.60%		 GET DETAILS

CIT Savings Builder Account
$100
0.55%		 GET DETAILS

Ally Online Savings Account
None
0.60%		 GET DETAILS

Alliant High-Rate Savings Account
$5
0.60%		 GET DETAILS

Discover Savings Account
None
0.60%		 GET DETAILS

Capital One 360 Savings Account
None
0.60%		 GET DETAILS

Barclays Online Savings Account
None
0.70%		 GET DETAILS

American Express High-Yield Savings
$1
0.60%		 GET DETAILS

Quontic High-Yield Savings
None
1.01%		 GET DETAILS

Marcus Online Savings Account
None
0.60%		 GET DETAILS

Best Savings Accounts of June 2022

So, what makes a savings account one of the *bests* of  June 2022? That depends on what you value most.

In determining our top 10, we reviewed more than 20 popular savings accounts and considered what elements seem to be most universally important:

  • Best savings rates
  • Stellar mobile app and/or web experience
  • Convenience of transfers (easy access to funds)

We considered only savings accounts that were FDIC-insured or NCUA-insured and had no monthly fees. And we kept in mind its availability of products; for instance, high-yield savings accounts, small-business resources and money market accounts.

Because physical branch access is becoming increasingly less important, all accounts on our list are online or hybrid (online with some brick-and-mortar bank locations).

Savings-Account Criteria We Didn't Weigh Heavily

So what didn't we consider when making our list that you might also want to look for?

Bonuses: Because banks regularly add, remove or replace their bonuses, we did not include them in our criteria. If you're stuck between two or three comparable savings accounts, see which one offers the best sign-on bonus. We highly recommend checking out our current bank promotions list to help earn bonus cash or incentives when signing up for a new savings account.

Customer service: Quality of customer service is subjective. Read reviews and ask friends and family about their experiences when considering banks.

To truly determine how you feel about the level and quality of customer service, give the bank a call and ask some questions about the account. From that interaction, you should be able to feel out how much each bank values customers and prospects.

Synchrony High-Yield Savings

Best for High-Yield Savings
4.5 out of 5 Overall
Key Features
  • 0.60% APY on all balances
  • No monthly fees
  • Highly rated mobile app
GET DETAILS
Synchrony is an FDIC-insured online bank. It offers a notch above a traditional savings product with its high-yield savings account. Users can take advantage of a high APY — with no minimum balance requirement — and no fees, aside from accessing out-of-network ATMs (though Synchrony offers a $5 monthly reimbursement).
Synchrony High-Yield Savings
APY
0.60%
Monthly fees
None
Minimum balance required
None
Additional fee for withdrawals
None
ATM fees
None for in-network
More Information About Synchrony High-Yield Savings

With Synchrony, you can access your money through an ATM, electronic transfer to an external account, wire transfer or a paper check in the mail (remember, it's an online-only institution). And if you're interested in similar accounts, check out our list of the overall best high yield savings accounts.

Check out our Synchrony Bank review for a full run-down of features and offerings.

CIT Savings Builder Account

Best for Users Who Need an Incentive to Save
4 out of 5 Overall
Key Features
  • No monthly fees
  • Earn up to 0.55% APY
  • Low minimum required balance
GET DETAILS
CIT Bank (not to be confused with Citi) has a Savings Builder savings account to help users earn more on their money. To get up to 0.55% APY, your account either needs $25,000 in it or you must make a monthly minimum deposit of $100 to the account. Obviously, the latter option is more feasible for the average consumer — and a good incentive to save each month, to boot.
CIT Savings Builder
APY
Up to 0.55%
Monthly fees
None
Minimum balance requirement
$100
Additional fee for withdrawals
None
ATM fees
None for in-network
More Information About CIT Savings Builder

With CIT Bank, you can get your money via electronic transfer, wire transfer (free if you have $25,000 or more in the account) or paper check. Bonus: You can get reimbursed up to $30 a month for using other bank's ATMs. CIT Bank's mobile app also has a solid rating; at the time of writing, the app has a 4.6 rating on the App Store and 3.6 on Google Play.

Check out our CIT Bank review for a full run-down of features and offerings.

Ally Online Savings

Best for Users Who Want to Save Smarter
5 out of 5 Overall
Key Features
  • Highly rated mobile app
  • Up to 0.60% APY
  • Free tools to help you save more money
GET DETAILS
Ally is a leading online bank that offers all kinds of banking products. Its savings account is a solid step-up from the competition: Ally offers a high APY, no monthly fees and savings tools such as "buckets" and boosters, which help accelerate your savings on autopilot.
Ally Online Savings
APY
Up to 0.60%
Monthly fees
None
Minimum balance requirement
None
Additional fee for withdrawals
None
ATM fees
None for in-network
More Information About Ally Online Savings

To earn up to 0.60% APY from Ally, here's what you need to know: Ally's three online savings account balance tiers are less than $5,000, between $5K and $24,999.99, and $25K or more. Ally will pay the particular APY based on the tier your end-of-day balance falls in. You can transfer money via direct deposit, electronic transfer, wire transfer or paper check.

Check out our Ally Bank review for a full run-down of features and offerings.

Alliant High-Rate Savings

Best for Users Who Prefer to Bank at a Credit Union
4 out of 5 Overall
Key Features
  • 0.60% APY
  • Low minimum balance required
  • Free ATM card
GET DETAILS
The Alliant High-Rate Savings account is offered via the Alliant Credit Union. So, instead of FDIC insurance, it carries insurance through the National Credit Union Administration (NCUA). (No concerns there: Like the FDIC, the NCUA federally insures your money.) In exchange for an average daily balance of $100, you'll qualify for 0.60% APY.
Alliant High-Rate Savings
APY
0.60%
Monthly fees
None
Minimum balance requirement
$5
Additional fee for withdrawals
None
ATM fees
None for in-network
More Information About Alliant High-Rate Savings

Joining Alliant requires some effort. You need to fulfill one of these five requirements:

  • Be a current or retired employee of a business that is partnered with Alliant.
  • Have an immediate family member or domestic partner who banks with Alliant.
  • Be a member of an Alliant-related organization/association.
  • Live or work in one of the following communities in Illinois.
  • Become a member of Foster Care to Success, Alliant's partner charity.

Once you join, you're eligible to open a high-yield savings account for $5 (which Alliant will reimburse you for!).

Check out our Alliant Credit Union review for a full run-down of features and offerings.

Discover Savings

Best for Access to a Cash-Back Debit Card
4 out of 5 Overall
Key Features
  • Debit card offering cash back
  • 0.60% APY
  • Highly rated mobile app
GET DETAILS
The Discover (yes, the credit card brand) Savings Account offers a substantial APY and easy access to funds via a rewards checking account. Interest in the savings account is also compounded daily versus monthly, like with some accounts.
Discover Savings
APY
0.60%
Monthly feeds
None
Minimum balance requirement
None
Additional fee for withdrawals
None
ATM fees
None for in-network
More Information About Discover Savings

While Discover doesn't offer an ATM card for its FDIC-insured savings account, you can sign up for Discover Cashback Debit (it's free!), which earns up to 1% cash back on up to $3,000 a month. The linked debit account provides an easy way to transfer funds; otherwise, you can rely on electronic transfers, wire transfers and paper checks.

Capital One 360 Performance Savings

Best for Users Who Want to Connect Multiple Accounts
4 out of 5 Overall
Key Features
  • Highly rated mobile app
  • 0.60% APY on all balances
  • No monthly fees
GET DETAILS
This big-name savings account boasts no monthly fees, easy integration with other Capital One 360 accounts (including a checking account for easy funds transfer) and a killer app. Per the latter, in 2018, the Capital One 360 mobile app was ranked No. 1 in customer satisfaction in the banking category for the second year in a row in J.D. Power's U.S. Banking App Satisfaction Study.
Capital One 360 Performance Savings
APY
0.6-%
Monthly fees
None
Minimum balance requirement
None
Additional fee for withdrawals
None
ATM fees
None for in-network
More Information About Capital One Performance Savings

If you don't open a linked checking account for easy ATM access with Capital One, you can still get your funds via the traditional (but slower) means.The Capital One Performance Savings Account is a good option for people who prefer to bank with a well-known entity.

Check out our Capital One Bank review for a full run-down of features and offerings.

Barclays Online Savings

Best for Consumers Saving Toward a Goal
3.5 out of 5 Overall
Key Features
  • 0.70% APY
  • No minimum balance required
  • Secure, 24/7 online access to funds
GET DETAILS
Barclays Online Savings Account offers a high APY and strong mobile app. The company also has a Savings Assistant tool, which can help users save toward a financial goal. Unlike others on the list, however, Barclays doesn't have a checking account opton; so, you'll have to transfer your money to an external account, which can take two to three days to post.
Barclays Online Savings
APY
0.70%
Monthly fees
None
Minimum balance requirement
None
Additional fee for withdrawals
None
ATM fees
n/1
More Information About Barclays Online Savings

With this Barclays savings account, users can deposit and withdraw funds in a number of ways, through direct deposit, an electronic transfer, paper check and more. If you're looking for additional savings options, Barclays offers online CDs as well.

Check out our Barclays Bank review for a full run-down of features and offerings.

American Express High-Yield Savings

Best for Users Who Like to Make Multiple Withdrawals
3.5 out of 5 Overall
Key Features
  • No minimum balance requirements
  • Up to nine withdrawals allowed
  • 0.60% APY
GET DETAILS
American Express offers a high-yield, FDIC-insured savings account. It boasts 24/7 support and a highly rated mobile app for iPhone and Android users. While there's no debit card option, users have round-the-clock access to their funds.
American Express High-Yield Savings
APY
0.60%
Monthly fees
None
Minimum balance requirement
None
Additional fee for withdrawals
None
ATM fees
n/a
More Information About American Express High-Yield Savings

With American Express high-yield savings, electronic transfer, wire transfer and paper check are the only ways to access your money. On the plus side, you can make up to nine withdrawals or transfers during a monthly statement cycle. This is higher than the six withdrawals or transfers that many high-yield accounts typically offer.

Marcus Online Savings

Best for Growing an Account You Don't Need to Touch
4 out of 5 Overall
Key Features
  • 0.60% APY
  • Popular app
  • No minimum balance requirement
GET DETAILS
Marcus by Goldman Sachs is FDIC-insured, has no fees or minimum balance requirements, and offers seven-day customer support. If you've been dragging your feet to start an emergency fund, this might be a good place to start.
Marcus Online Savings
APY
0.60%
Monthly fees
None
Minimum balance requirement
None
Additional fee for withdrawals
None
ATM fees
n/a
More Information About Marcus Online Savings

Marcus by Goldman Sachs withdrawals are limited to electronic transfer and wire transfer. You also cannot deposit checks via the app. If you're looking for an account you can set-and-forget while earning higher interest, this could be an attractive option for you with a well-known company.

Pro Tip

After you have padded your savings account with enough cash to cover emergency expenses and your other savings goals, you'd be better off opening an IRA or 401(k) or investing in stocks.

Quontic High-Yield Savings

Best for Users Who Want a High APY Above All Else
4 out of 5 Overall
Key Features
  • 0.75% APY
  • $100 to get started
  • Mobile app
GET DETAILS
Quontic is an adaptive digital bank that offers more than your run-of-the-mill banking services, such as a wearable debit card ring and Bitcoin rewards checking. The company also strives to help those traditionally underbanked secure home loans. No hidden fees here: If there's a cost involved, Quontic makes it known on its Schedule of Fees, listed on its website.
Quontic High-Yield Savings
APY
1.01%
Monthly fees
None
Minimum balance requirement
None
Additional fee for withdrawals
$10
ATM fees
n/a
More Information about Quontic High-Yield Savings

Interested Quontic customers can open this high-yield savings account with $100 and in as little as three minutes. Users can take advantage of up to six free withdrawals per statement cycle (and pay $10 after that). You won't get a debit card with this account, but you'll have access to services such as remote check deposit and bill pay.

What Is a Savings Account?

A savings account is a bank account where you store your money. Typically, you keep it here for long-term goals instead of using it for everyday expenses. To see a detailed explanation of how it differs from a traditional checking account, visit our checking vs. savings account comparison.

The best savings accounts are secured by the Federal Deposit Insurance Corporation (FDIC) for up to $250,000. That means if you store your money with a bank and it goes under, you won't lose your money.

Savings accounts are perfect for achieving your savings goals — for a car, a house, a wedding, vacations, you name it. More importantly, they are the best tool to build your emergency fund.

Most experts agree your emergency savings should total six months' worth of necessary expenses in the case of job loss or another unpredictable emergency. Necessary expenses might include rent/mortgage, car payments, insurance, medical bills, utilities and groceries.

However, don't sweat it if you don't have six months' worth saved up. It takes time to build up your savings. Even if you can consistently deposit $50 a month, that's a good start.

One thing a savings account is not is an investment account. Savings accounts have historically low interest rates — or annual percentage yield (APY) — but they are inherently low risk.

Pro Tip

After you have padded your savings account with enough cash to cover emergency expenses and your other savings goals, you'd be better off opening an IRA or 401(k) or investing in stocks.

Common alternatives to savings accounts include certificates of deposit (CDs), where you store your money for a fixed term for a slightly higher interest rate, and money market accounts, which typically offer a higher APY but have significantly higher minimum balance requirements.

So just how much interest will you earn in a savings account? That depends on the amount you've saved and your APY.

Online Banks vs. Brick-and-Mortar Banks

Before the advent of the internet, brick-and-mortar banks (and credit unions) were the only place to store your money, if not in your duffel bag.

But over the last couple decades, online banks have transformed the way we think of safely storing our money, and because of their low overhead (fewer staff and few or no physical locations), they can offer much better interest rates on savings accounts.

Pros of Online Savings Accounts

When online savings accounts first surfaced, bank customers were hesitant to store their money with companies they had never heard of and were fearful of internet security issues.

Today, many of these same customers now see far more pros to online savings accounts than their traditional physical banks.

Higher Interest Rates

This is easily the most important distinction between brick-and-mortar banks and online banks. The national average APY for a savings account is 0.07%, according to the FDIC. But many brick-and-mortar banks offer less than that. Online banks, on the other hand, tend to offer savings rates that are better — sometimes a lot better

Availability

Online banks are always open. The most competitive online banks offer around-the-clock service over the phone or online, and typically have more user-friendly apps and websites.

Some national banks and credit unions may offer 24/7 service, but their physical locations are typically limited to the 9-to-5 business hours.

Pros of Brick-and-Mortar Savings Accounts

There are advantages to brick-and-mortar banks. However, if these benefits do not hold massive weight for you, we highly recommend an online savings account.

Easy Access to Account Funds

Emergencies wait for no one. If you have an unexpected need for $10,000, it would be nice to be able to immediately access that.

Many online savings accounts take several days to get you your funds via ACH deposit or a written check, though wait times for ACH deposits have dramatically decreased in recent years.

(You can also speed up the process by opening a checking account with your online bank or choosing an online savings account with ATM benefits. Prioritize online banks that offer free checking accounts or ATM convenience cards.)

Brick-and-mortar banks, however, can allow major withdrawals at any of their locations. No waiting necessary.

In-Person Support

Some people prefer to resolve their issues over the phone or online, but many others find comfort in face-to-face communication. By opening a savings account with a bank that offers physical locations, you'll be able to get in-person help from financial experts during regular business hours.

… And a Toss-Up

When it comes to access to ATMs, there is no clear winner. Obviously, brick-and-mortar banks and credit unions offer ATMs at all their locations, where you can easily withdraw your money.

Many online banks, however, offer fee-free withdrawals at select ATMs, and the best online banks will reimburse you for fees incurred out of network.

[community_widget]

6 Tips for Choosing a Savings Account

You should be aware that banks can change interest rates, develop better apps and update their bonuses, so it is important to understand how to determine the best savings account for yourself.

Here are a few tips:

1. Consider Your Needs

We prioritized high savings rates, ease of funds transfer and mobile apps in our rankings, but maybe for you, two-factor authentication and customer service are top considerations.

Build your own ranking system based on your top two or three criteria. You won't find a perfect bank that offers everything, but at the very least, you'll find banks that can meet all of your top needs.

2. Stick With Online

Put your money in an online savings account, unless you have a good reason not to, such as a high interest savings account at a brick-and-mortar credit union or a regular need to get in-person help.

3. Save Only With Insured Banks

Do not put your money into any bank that is not insured by the FDIC. Or, if you go the credit union route, make sure it is insured by the NCUA. We did not include any banks on our list that were not insured.

4. Don't Be Tempted by Sign-on Bonuses Alone

Earning cash for starting an account with a bank feels awesome, but don't let the appeal of $100 now prevent you from putting your savings into an account that will earn you $500 over a couple years.

5. Find a No-fee Account

Be wary of accounts with monthly maintenance fees, statement fees or any other miscellaneous charges. You're more likely to find these fees with a brick-and-mortar bank.

Ideally, find a bank that has an associated free checking account for easy and fast funds transfers.

6. Read the Fine Print

Know what you are signing before you sign it.

If an APY sounds too good to be true, it's possible there are strings attached — or that the rate is only temporary.

Ask questions and do research when you are confused by any of the terms and conditions, and don't deposit your savings until you are satisfied with the agreement.

Frequently Asked Questions (FAQs) About Savings Accounts

Here's a round-up of common questions — and answers — when it comes to savings accounts.

What Bank Has the Best Savings Account Plan?

The "best" bank will vary from person to person. In general, look for a savings account with minimum requirements and a decent APY — which, these days, hovers somewhere between 0.40% and 1.00%.

Which Savings Account is Best for 2022?

Similarly, the best savings account for 2022 will hinge on a variety of factors. Look for an account that offers a savings account with a solid APY that ticks off other boxes — Do you want to be able to view your savings on an app? Bank with an institution that offers additional products? Score a higher interest rate with an online-only bank? Depending on your needs, wants and goals, there's a bank with a savings account offering that will work for you.

What is a High-Yield Savings Account?

A high-yield savings account is another option to store your money. Similar to a savings account, these accounts typically offer higher interest rates if you follow certain guidelines. For instance, you might be required to maintain a regular balance and be allowed to transfer money out a particular number of times a month. High-yield savings accounts could be a good option for you (and your emergency fund) if you're disciplined and organized, and don't need daily access to this money.

What is the Best Interest Rate for Savings in the UK?

Interest rates for savings accounts in the United Kingdom are higher than rates in the States. For a traditional savings account, a rate between 1.50% and 3.50%  AER (Annual Equivalent Rate) is considered pretty good right now, according to The Times.

How Can I Make the Most Interest on My Money?

First, look for a traditional savings account that offers higher than 0.06% APY, the national average. And again, consider a high-yield savings account or online-only savings account, which usually boast higher interest rates. From there, make saving money regularly — any little bit helps — a habit. With consistency and patience, you'll earn money on your savings.

Contributor Kathleen Garvin (@itskgarvin) is a personal finance writer based in St. Petersburg, Florida, and former editor and marketer at The Penny Hoarder. She owns a content-writing business and her work has appeared in U.S. News, Clark.com and Well Kept Wallet.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

This posting includes an audio/video/photo media file: Download Now

What Is a Certified Check and Where To Get One

Posted: 31 May 2022 04:45 AM PDT

Have you ever bounced a check and paid the price? Fees can be steep and the embarrassment, too, when you don't have enough in your account to cover the check … or checks.

Luckily, other options, like certified checks, can help you avoid this scenario. And there are times when a certified check is requested like when you are making a down payment on a home or buying a car from a private party.

This article will cover what a certified check is, where and how to obtain one, frequently asked questions regarding certified checks, and some disadvantages you need to be aware of.

What Is a Certified Check?

A certified check is a personal check verified by a user's bank. The bank will confirm the account holder's signature and that there are enough funds available. Additionally, the check writer's bank will guarantee funds by placing a hold on that amount until the receiver deposits the certified check. This prevents a situation where you have the money today but might not tomorrow if more checks are cashed on your account.

Why Would You Want a Certified Check?

There are many reasons to get a certified check. They are particularly useful for a down payment on a house, appliance replacement, and other large transactions. Some sellers require these large payments to be made with a certified check because they are guaranteed funds. Additionally, the buyer is less likely to bounce a check due to insufficient funds. Not to mention, it is much easier to carry around a check rather than a large amount of cash.

How To Obtain a Certified Check

There are only a few steps involved with obtaining a certified check.

Confirm Your Bank Offers Certified Checks

Most banks and credit unions offer certified cashier's checks, but it is always best to confirm first. Contact your bank or credit union in person or over the phone to obtain an official answer. If your bank is online only, it is unlikely that they can issue a certified check.

Visit Your Bank Branch

You will need to visit your bank or credit union in person and meet with a bank teller. Let them know you would like a certified check and confirm any additional instructions that may be required. Present your ID card and write your check in front of the teller. The teller will then verify your signature and whether or not you have sufficient funds in your account. If everything is satisfactory, they will mark or stamp your check to certify it.

Pay Any Fees

Afterward, you will need to pay fees for the certified check. You can confirm which payment method your bank prefers over the phone, but cash is a good option to cover your fees. You can now deliver your check to complete your purchase.

Fees for a Certified Check

Most banks and credit unions have fees associated with a certified check. You can expect to pay at least $15, although the fees depend on the bank. You can call ahead to confirm the amount you will be expected to pay.

Keep Your Receipt

Although the check is certified, it is important to keep your receipt. It is your physical confirmation in case something were to go wrong. For instance, the deposited funds take longer than normal to clear, and the receiver questions the check's legitimacy. With your receipt, you will be able to prove your check was authentic.

The Downsides to a Certified Check

Everything has its pros and cons and certified or official checks are no exception. The following are a few downsides regarding certified checks you should keep in mind.

Service Fees

Certified and cashier's checks often come with service fees. Bank service costs can range from a small fee of around $5 up to $25. If you have to use certified and cashier's checks a lot, these costs can quickly add up. If this is the case, you may want to consider a bank with a lower service fee or one that waives the fee entirely.

When you search for a new bank, it can be lucrative to see if the bank has any bank promotions for new customers. These are usually cash rewards you earn when you create a new account. Changing banks can be a good way to earn some extra cash and lower your service fees at the same time.

Check Scams

Scammers have developed several methods to use certified checks to commit fraud. If you receive certified checks regularly, you will need to be vigilant about checking for fraudulent checks.

If you are unsure whether or not you are receiving legitimate certified checks, it does not hurt to look up the bank the checks came from and call them to verify their legitimacy. Do not use the phone number printed on the check because scammers will change this number to their own. Instead, you should look up the bank and its phone number online.

There are also inauthentic sellers to watch out for. These false sellers request certified or cashier's checks but fail to deliver your goods.

Overdrawn Account

You can still overdraw your account even when using certified checks. If this occurs, you may be subject to fees from your bank, although some banks have removed overdraft fees. Even without fees, you may incur a penalty. It is best to talk to your bank to understand the consequences of overdrawing from your savings and checking accounts.

Certified checks protect you from bouncing a check, but they do not change money flow in and out of your account. You will need to remember any money attached to a certified check is not available for use. It is best to subtract this amount from your total checking amount to ensure you will not overspend on other purchases.

Make sure you have enough funds in your checking account to cover any checks you write. We've got the blueprint on how to avoid overdraft fees.

Banks Can Fail

It is uncommon but sometimes banks are unable to meet their financial obligations. Thankfully, the Federal Deposit Insurance Corporation (FDIC) insures over $200,000 worth of deposited funds at participating locations, so your money is protected. But sometimes, banks will have your funds transferred to them, interfering with any ongoing transactions. It is best to contact any receivers of your certified checks to let them know what is going on.

Frequently Asked Questions (FAQs) about Certified Checks

There are several common questions regarding certified checks, and this section will cover their answers.

Is a Certified Check the Same as a Cashier's Check?

Although certified checks are similar to cashier's checks, they are different. The difference comes from where the funds are held. With a certified check, funds remain in the user's account, but with a cashier's check, funds are moved into the bank's account. Both can be used for large purchases and are considered more secure than regular checks because funds are verified before the check can be deposited or cashed. Cashier's checks may also require a service fee.  

Sometimes the terms "cashier's check" and "money order" are used interchangeably but there is a difference. A cashier's check is issued by a bank or credit union and a money order can be purchased at retail stores, post offices, check cashing businesses, banks and credit unions. Cashier's checks may be made for large amounts of money and money orders are limited to $1,000 or less, depending on where they are purchased.

How Long Does It Take to Get a Certified Check?

Once at your financial institution, obtaining a certified check usually takes around 10 minutes. If you need your check fast, try going at times and days when the bank is not as busy.

How Do Certified Checks Work?

Certified checks work almost the same as regular paper checks. The only difference is that the funds are verified by the financial institution the certified check is drawn on and the signature of the check writer. The bank certifies that both of these conditions are met and valid. A mark or stamp is put onto the check and is used to denote the certification of the check.

Do Certified Checks Clear Immediately?

Certified checks do not clear immediately. After they are deposited, they take about as long as wire transfers. For the check to clear, the typical turnaround time is one business day.

What Do I Need To Obtain a Certified Check?

To obtain a certified check, you will need a checking account with checks, enough money to cover the check amount and the service fee, an ID card, and the ability to visit your bank or credit union branch in person.

What Are Official Checks?

Official checks can be certified or cashier's checks. Banks will use different vocabulary depending on their offerings. If you are unsure, it is best to contact your bank. With a certified check, funds remain in the user's account, but with a cashier's check, funds are moved into the bank's account. Both can be used for large purchases and are considered more secure than regular checks because funds are verified before the check can be deposited or cashed.

In Conclusion

When it comes to personal checks, banks and credit unions offer a variety of tools for you to use. Certified checks and cashier's checks are especially useful for large transactions. They protect both the seller and buyer by confirming there are enough funds available to complete the transaction. Although there are some inconveniences, they are safe and easy to use.

New York contributor Kiara Taylor specializes in financial literacy and financial technology subjects. She is a corporate financial analyst who also leads a group affiliated with the University of Cincinnati that teaches financial literacy to Black students and helps them secure employment and internships.

This was originally published on The Penny Hoarder, which helps millions of readers worldwide earn and save money by sharing unique job opportunities, personal stories, freebies and more. The Inc. 5000 ranked The Penny Hoarder as the fastest-growing private media company in the U.S. in 2017.

This posting includes an audio/video/photo media file: Download Now

at

No comments:

Post a Comment

Subscribe to: Post Comments (Atom)

How Healthy Is This Weight Loss Health Food Writer? You Might Want To Listen To This Old Guy…

I recommend eating the way I do, but very few will do it. Too strict. Probably l...