Ten or so years ago it wasn’t common to have home or apartment security cameras.

They were either cost prohibitive, overly complex, or both.

Ring is one of the companies that changed that.

Most people are familiar with Ring because of the Ring Video Doorbell, but they also offer a wide range of other products including home security cameras.

If you are considering adding Ring Cameras, this post will help you decide whether to get POE Ring cameras or WiFi Ring cameras.

What are the Different Ring Camera Options?

 
As you can tell from the title, one regret I have is setting up a bunch of WiFi Ring cameras instead of POE Ring cameras.

The problem is that most people don’t know what “POE” means. It wasn’t until after I set up many cameras that I learned more about POE, or power over ethernet, and why POE Ring camears are better than WiFi Ring cameras.

To be clear, I think that WiFi Ring cameras are better than no cameras at all. It was a game-changer the first time I traveled to be able to log in and check my cameras, and even get alerts of motion. Since then I can’t imagine not having some sort of camera system and broader home security system in place.

When it comes to power source, there are three major types of Ring Cameras:

• Wired

• Battery

• POE

The Ring Stick up cam is an example of a wired Ring camera. This camera can also be powered by solar, which is actually quite affordable for Ring cameras.

Regardless of the power source, these Ring cameras are going to need to connect to your home network, and that’s accomplished by connecting to WiFi.

The same can be said about battery-powered Ring camera options. It still needs to connect via WiFi.

This brings us to POE Ring cameras, or power over ethernet. The unique thing about POE is that it provides both power and network via one cord. An example of a Ring POE camera is the Ring Stick Up Cam Elite.

Why POE Ring Cameras are Better than WiFi Ring Cameras

 
As I already mentioned, there is nothing inherently wrong with a WiFi security camera. In fact, the nice thing about them is how easy it is to connect to your network.

But WiFi Ring cameras come with their disadvantages.

In general, WiFi is less reliable than wired devices. This is true not just for Ring cameras but any device you are connecting to your network. WiFi signals can get jammed up or face interference, which is an issue for something meant to provide security.

Another thing to think about is placement of cameras. A lot of times you’ll want to place cameras around the exterior of your house, with soffit being the most likely thing you mount your cameras to. With wired Ring cameras you are going to need to have an outlet nearby, or you’ll have to run extension wires such as these to the closest outlet.

This may not seem like a problem at first, but when you really think about how many outlets you have in places like your garage and how accessible they are, you can run into issues once you start adding multiple cameras to your house.

Since you are already running wires, why not run POE wires (which are essentially cat6 ethernet cable and connect to a POE camera? From a wiring perspective it’s the same or less work, and you end up with a more secure and stable network connection.

How Does POE – Power Over Ethernet – Work?

 
Most people aren’t familiar with POE. And even when you first hear about it, it can be difficult to wrap your head around it.

If you can get past the initial “new-ness” of the concept, you can get comfortable with using it as your power and network source for your cameras. Perhaps more importantly, you can avoid the mistake I made of going with WiFi cameras. Because like me, you can avoid first buying WiFi cameras and then later swapping everything out to POE.

A graph can be helpful. Below is how POE works for Ring cameras.

Most home networks consist of a cable modem, a router, and that’s it. Using POE just takes one extra step: a POE switch.

The way a POE switch works is you run ethernet cable from the router to the switch, and then you run ethernet cord from the switch to the cameras.

And that’s it – you’ll have a wired network connection and power to your cameras.

Below is an example of a POE switch:

Once you start comparing the process of running wire for wired Ring cameras to running cat6 ethernet wire for POE ring cameras, running ethernet is more flexible. You only need an outlet for the switch, not for each camera.

There is one advantage wired Ring cameras have over POE Ring cameras: price.

If you compare the Ring Stick Up Cam, which is the wired option, to the Ring Stick Up Cam Elite, which is the POE option, the Stick Up Cam is about $100 while the Stick Up Cam Elite is about $200. So essentially with each camera you purchase you are paying double for POE.

With all that being said…POE is the future for security cameras. You are better off setting up POE cameras now instead of WiFi cameras which you likely will eventually upgrade to POE.

If you are ready to set up your Ring home security network, here’s a list of supplies:

• POE+ Switch (we didn’t get into POE vs. POE+ vs. POE++ in this post, but I recommend getting at minimum a POE+ Switch)

• Cat6 Ethernet cable

• POE Ring cameras

I did not include a modem or router since most people have it, but you can of course shop for these on Amazon as well.

This isn’t surprising. We are inundated with Instagram pics of people visiting cool locations all over the world.

In Minnesota where we have brutal winters, a pic from a beach can instantly cause wanderlust (and jealousy).

The main thing keeping people from traveling is money.

I can relate: my wife and I graduated undergrad with $100k in student loan debt.

Even if you have little or no debt there is a never-ending list of things you need money for: rent, a down payment on a house, health care, retirement, pets, emergency fund…the list goes on.

Travel is something we wanted to prioritize after college. But we also wanted to hit other personal finance goals, including building an emergency fund which is no small feat.

One of the benefits of being a personal finance blogger is that I am exposed to many different ways to save money. The more I learned about credit card rewards, the more I realized that they could help make our travel goals possible.

Travel rewards credit cards oftentimes come with a “welcome” bonus, such as “get 50,000 miles if you spend $3,000 on your credit card within the first three months of signing up.” Those welcome bonuses can really pay off because they translate to hundreds of dollars of savings through a statement credit or through free flights.

 
A quick note: If you are currently in credit card debt I recommend not signing up for these cards. The amount you pay in interest will outweigh any potential benefits. Instead, read my post about what to do if you are in credit card debt.

OUR TOP CHOICE: Chase Sapphire Preferred

 
The Chase Sapphire Preferred has been one of the top credit cards on the market for some time now.

One positive of this card is the fact that there are so many partner programs that you can transfer your 60,000 Chase Ultimate Rewards® to. The points transfer 1:1 to the following programs:

• United MileagePlus®
• British Airways Executive Club
• Aer Lingus, AerClub
• Emirates Skywards®
• Flying Blue AIR FRANCE KLM
• Iberia Plus
• Singapore Airlines KrisFlyer
• Southwest Airlines Rapid Rewards®
• Virgin Atlantic Flying Club
• IHG® Rewards Club
• Marriott Bonvoy
• World of Hyatt®

Both my wife and I have signed up for this card and we transferred the points to our United MileagePlus® account. You don’t have to transfer your points to get value out of this card, though: the 60,000 Chase Ultimate Rewards® bonus points are redeemable for $750 on the Chase portal.

Bonus: 60,000 Chase Ultimate Rewards® bonus points

How to Unlock the Bonus: Spend $4,000 within the first 3 months of account opening

What the Bonus can be Used for: Redeemable for $750 through Chase Ultimate Rewards® or transfer 1:1 with partner travel rewards programs

Annual Fee: $95 (NOT waived the first year)

Capital One® Venture® Rewards Credit Card

 
The Capital One® Venture® Rewards Credit Card is one of the best travel rewards credit cards because of how flexible its rewards are.

This card offers $500 towards any travel-related cost after you spend $3,000 within the first 3 months of account opening.

This card is great because of its simplicity. You know exactly what you are getting with this card and you don’t have to limit yourself to specific companies or brands when redeeming your rewards.

An extra perk with this card is that you will receive up to $100 application fee credit for Global Entry or TSA Pre®.

Bonus: 50,000 bonus miles

How to Unlock the Bonus: Spend $3,000 within the first 3 months

What the Bonus can be Used for: Redeemable for $500 in travel-related expenses

Annual Fee: $95 (waived for the first year)

Chase Sapphire Reserve

 
The Chase Sapphire Reserve is a popular credit card, but it does come with a hefty price tag: a $550 annual fee.

Typically a card with a $550 annual fee wouldn’t be worth getting for anyone other than those who travel frequently. But one nice thing that comes with this card is a $300 annual travel expense credit. Assuming you will for sure have at least $300 in travel-related costs each year, the effective cost of the card is $150. Some of the other benefits of the card, such as lounge access and built-in trip insurance, can make the card annual fee worth the cost.

Similar to the Chase Sapphire Preferred, the Chase Ultimate Rewards® points transfer 1:1 to the following programs:

• United MileagePlus®
• British Airways Executive Club
• Aer Lingus, AerClub
• Emirates Skywards®
• Flying Blue AIR FRANCE KLM
• Iberia Plus
• Singapore Airlines KrisFlyer
• Southwest Airlines Rapid Rewards®
• Virgin Atlantic Flying Club
• IHG® Rewards Club
• Marriott Bonvoy
• World of Hyatt®

There are a couple additional perks worth pointing out. Chase will reimburse your expense for a TSA pre-check or global entry account up to $100, and they also provide you with one-year complimentary access to a network of over 900 airport lounges.

I signed up for global entry, which includes TSA Pre-Check, and it was so worth it. The first time I used it was a trip to NYC. I checked in online from home so I didn’t have to wait to print a boarding pass. Even with checking a bag it was under 10 minutes from stepping out of the car to being past security. I highly recommend it even for casual travelers.

Bonus: 50,000 Chase Ultimate Rewards® bonus points; $300 annual travel credit; Credit for Global Entry or TSA Pre-Check application

How to Unlock the Bonus: Spend $4,000 within the first 3 months of account opening

What the Bonus can be Used for: Redeemable for $750 through Chase Ultimate Rewards® or transfer 1:1 with partner travel rewards programs

Annual Fee: $550 (NOT waived the first year)

United Explorer Card

 
The United Explorer Card is a great card to have if you plan on flying United or if you either already signed up or plan on signing up for the Chase Sapphire Reserve® or the Chase Sapphire Preferred.

This has been my airline of choice the past few years because of how many miles you can rack up when you transfer Chase Rewards points 1:1. My wife and I have amassed over 300,000 miles and have used it to travel to Florida, St. Martin, and New York City. United is an ideal airline to have miles for because of the sheer number of locations they fly to.

Like most airline cards you will get free checked bags, but unlike other airline cards you will also get a pair of passes each year to the United lounge. I’ve taken full advantage of this perk over the past few years and it can make a layover at the airport a bit more tolerable.

Bonus: 40,000 United MileagePlus® Miles

How to Unlock the Bonus: Spend $2,000 within the first 3 months

What the Bonus can be Used for: Flights on United Airlines

Annual Fee: $95 (waived the first year)

Delta SkyMiles® Gold American Express Card

 
The Delta SkyMiles® Gold American Express Card has standard rewards you should expect from an airline credit card: first bag checked free (for everyone in your reservation) and priority boarding.

While there are other benefits such as no foreign transaction fees, the real draw of this credit card is the welcome offer.

Earn up to 70,000 bonus miles. Earn 60,000 bonus miles after you spend $2,000 in purchases on your new Card in your first 3 months. Plus, earn an additional 10,000 bonus miles after your first anniversary of Card Membership.

When you apply for the Delta SkyMiles® Gold American Express Card and spend $2,000 within the first 3 months of account opening, you earn 60,000 Bonus Miles. You can also earn an additional 10,000 bonus miles after your first anniversary of Card Membership.

Welcome Offer: 60,000 Bonus Miles

How to Unlock the Welcome Offer: Spend $2,000 within the first 3 months; also earn an additional 10,000 bonus miles after your first anniversary of Card Membership.

What the Welcome Offer can be Used for: Delta SkyMiles

Annual Fee: $99 (waived for the first year)

Southwest Airlines Rapid Rewards Plus

 
The Southwest Airlines Rapid Rewards Plus card is an airline card, and airline cards typically come with free checked bags. This card is no different, with first and second checked bags flying free.

But the main draw of this card is the 40,000 Southwest Airlines Rapid Rewards points, along with the potential of gaining their coveted Companion Pass. The Companion Pass allows you to book a designated companion’s flight for free, regardless of whether you pay with points or cash.

To get the Companion Pass you have to earn 110,000 Rapid Rewards points in a calendar year. This card will get you 40,000 (or 41,000 if you include the 1,000 you will get when you spend your $1,000 to get the bonus). If you get the Chase Sapphire Preferred and transfer over those 50,000 points you are even closer. Note: as of January 2020 you will need to earn 125,000 qualifying points to earn the companion pass.

Bonus: 40,000 Southwest Airlines Rapid Rewards® points

How to Unlock the Bonus: Spend $1,000 within the first 3 months of account opening

What the Bonus can be Used for: Southwest Airlines Rapid Rewards

Annual Fee: $69 (NOT waived the first year)

_________________________________________

There are a ton of travel reward credit cards with great bonuses. Using these cards alone could potentially save you thousands of dollars on travel.

Other Posts that Will Help You Save Money on Travel:

• Chase Ultimate Rewards: Our Simple Guide to Maximizing Your Points

• Tips for Making Travel More Affordable: Save Thousands on Travel

• What to Expect When Using AirBnB for the First Time

But budgeting apps aren’t for everyone. For some a spreadsheet is the best way to budget.

With a spreadsheet you have total control. You can move rows and columns around and add information easily.

With apps you have to work within their user interface. It can be frustrating to work with.

The biggest issue with budget spreadsheets is that you have to manually add all the information. Peter Polson, the founder of Tiller Money, saw this problem as an opportunity. Tiller Money adds automation to the budget spreadsheet process.

I’ll start this review of Tiller Money by talking about the automation that it brings to spreadsheets, which is the primary reason someone would use Tiller Money.

You can try Tiller Money out for free for 30 days using our link. After the 30-day trial, Tiller will bill you $6.58 per month to continue using their services. You can cancel at any time.

Tiller Money Makes Spreadsheet Budgeting Automated

 
I’ve used a budget spreadsheet for nearly a decade now, but it’s changed over time.

I used to sit down at the end of each month and drop credit card and bank data into a spreadsheet. Then I would go through the time-consuming work of editing all the data so it was uniform. This became a bit easier as I got used to how each of the credit card companies structured their data, but it still took about an hour a month.

Part of the reason it took me a while was because my wife and I both like to take advantage of credit card rewards. That means we were often signing up for new cards and moving our spend to different cards.

But even if you only use a couple credit cards and a bank account it can still take some time to pull all that monthly spend data together and get it set up in the same format.

Tiller Money automates this step of the process. Tiller Money, using bank-grade security, allows you to link your accounts and have daily updates of all your transactions. Most importantly they put all this data in the exact same format and drop it in a spreadsheet. This was a big time-saver for me and something that didn’t exist prior to Tiller Money.

 
Tiller Money works out of Google Sheets, but they have a beta of an Excel add-in. I’ll talk about their budgeting template next, but first I want to share a little more about how I use Tiller.

I continued to use my budget spreadsheet in Excel and did not switch to Tiller Money’s Google Sheets budget template. Instead I copy and paste the transactions data into my Excel budget spreadsheet. I then have formulas that read off of that data, which in turn feeds into tabs for each month’s budget (i.e. January 2020, February 2020, etc.).

My favorite tab, though, is a tab that has a summary of income and expenses. It has the months across the top and the spend categories to the left. You can quickly and easily see the trend of your monthly spend, and going forward can correct as needed. (I actually do not budget monthly but instead use this tab to review my monthly income and expenses).

 
You can read more about my free automated budget spreadsheet in Excel or if you are ready to check it out you can have it sent to your inbox by filling in the box below (check your spam if you don’t see it in your inbox).

 
Next let’s take a look at the Tiller Budgeting template.

Tiller Money Budgeting Templates

 
You can do all your budgeting within the Tiller Google Sheet. Here’s a few quick screenshots of what it looks like.

First, here is the monthly budget sheet. Once you set your monthly budget you are good to go. Your income and expense data will automatically flow into the tab.

 
Next you have a full-year view of your income and expenses. This will automatically update as well.

 
Finally there is a tab where you can add additional budget categories. This will also have a monthly view of income/expense for each category.

 
There is also a “Transactions” tab that will pull in your data automatically. They have an add-on within Google Sheets for Tiller Money that drives the automation. Within the add-on you can select which accounts you want to pull in. One example where this is useful is with keeping personal and business transactions separate. I have one set up for my personal income and expenses and one for my business income and expenses.

Tiller Money Functionality

 
With new technology there is typically two questions that need to be asked:

• Does it save me time? If not, does it make me money, save me money, or enrich my life in some other way?

• How easy is it to use?

The first question is easy to answer. Tiller Money automates something that otherwise would have to be done manually. It saves you time, potentially more than an hour a month.

It also helps you improve your financial life because you can view the data on-demand. Once your accounts are set up any new transactions will flow into your Google Sheet. Whether you notice it directly or indirectly, you are likely to be more on top of your spending if you are checking your transactions daily or weekly instead of monthly. You also may be more likely to notice an increase in a recurring charge (internet, for example…) if you are checking transactions often. You can do this today by logging into your accounts individually, but Tiller pulls it into one place and automatically will compare your spend to your budget.

Ease of use is a different question that is more difficult to answer. I say that because the initial set-up process can take a little bit of time. You need to learn how Tiller’s budget spreadsheet works (and/or my free budget spreadsheet). You also need to link all your accounts.

This can take some time, but once everything is set up and you are comfortable using either the Google Sheet or the Excel spreadsheet you are essentially good to go. As I mentioned earlier I grab the transactions data out of Tiller Money and move it to my spreadsheet. Now that I have my accounts linked all I need to do is open the Google Sheet and grab the data from the “Transactions” tab. There is no other effort required for me to use Tiller Money. This should be comparable if you use their Budget spreadsheet, which also will be more or less automated once you get it set up initially.

How Much Does Tiller Cost?

 
You can try Tiller Money out for free for 30 days using our link. After the 30-day trial, Tiller will bill you $6.58 per month to continue using their services. You can cancel at any time.

Why isn’t Tiller Money free like Mint? Unlike Mint there are no advertisements in Tiller Money. Mint seems to constantly be trying to refer you to products and services, and it should be no surprise: they need to make money somehow.

Should You Try Tiller Money?

 
Given that this isn’t a free app after the 30-day free trial, it’s natural to wonder if Tiller Money is really worth the cost.

Trying it out with the free trial is really the only way to tell if Tiller Money will be worth it for you, but here is a few quick thoughts on who would likely benefit from using Tiller Money and who it likely won’t appeal to.

Tiller might be for you if:

• You prefer spreadsheets over apps

• You want an affordable way to track your money

• You like a snapshot of your entire financial situation all in one place

• You like to be able to customize your budget

 
Of course, Tiller isn’t for everyone. It might not be the best fit if:

• You have never used a spreadsheet before and have no desire to start

• You prefer the navigation and platform of an app

Try out Tiller Money for free: Use this link for a free 30-day trial to Tiller Money.

When I think of a good credit card for everyday purchases, it naturally leads me to cash back credit cards. They offer consistent rewards and typically have no annual fee.

While some people try to get travel rewards from their credit cards, if you want to keep things simple a cash back credit card is a great option. And let’s be honest: travel rewards during COVID aren’t that great.

This post shares some of the best cash back credit cards on the market today. We update this post regularly with new offers.

I look for two things when I think of top cards for everyday purchases:

• No Annual Fee

• Consistent Rewards

Here are our current picks for cash back credit cards:

1) Chase Freedom Flex

 
The Chase Freedom Flex Credit Card, is a brand new credit card from Chase. It’s loaded with an outstanding sign-up bonus where you get $200 cash back after you spend $500 on purchases in your first 3 months from account opening. I repeat: spend $500, get $200(!) This is a really great offer.

But it doesn’t stop there. Here are some other perks that come with the card:

• 5% cash back on up to $1,500 in combined purchases in bonus categories each quarter

• 5% cash back on grocery store purchases (not including Target® or Walmart® purchases) on up to $12,000 spent in the first year

• 3% cash back on dining and at drug stores

• 1% cash back on all other purchases

Bonus: One-time $200 Bonus after you spend $500 on purchases within the first 3 months from account opening.

Annual Fee: None

Learn how to apply for the Chase Freedom Flex credit card

2) Fidelity® Rewards Visa Signature® Card

 
The Fidelity® Rewards Visa Signature® Card is an excellent cash back credit card, with 2% cash back on every single purchase, no exceptions.

This card has the added benefit of being deposited directly into your Fidelity account. Naturally this makes it more likely that you will use your cash back to invest.

Bonus: Receive 10,000 Bonus Points—which equals $100 cash back, when deposited into an eligible Fidelity account—after you make at least $1,000 in eligible purchases within the first 90 days of account opening.

Annual Fee: None

But SoFi has since expanded their offerings. Not only can you refinance your student loans with SoFi, you can also open a bank account and even invest in stocks and ETFs.

SoFi Invest is their brokerage product, and there is a lot to like about it.

We’ve been testing out SoFi review for the past couple months and here are a few highlights:

• Sign up entirely online

• Sleek and simple mobile app

• Purchase fractional shares, or “bits” of a stock

• $1 minimum balance requirement

• Zero stock and ETF trading fees

Let’s go over the benefits and drawbacks of using SoFi Invest.

Sign Up Entirely Online

 
The process for signing up for SoFi Invest is simple and entirely online. This is how it should be, in my opinion, and COVID has definitely started to weed out the businesses that make it anything but simple to get started.

To sign up and get started on SoFi Invest you can use this link.

If you plan on depositing $1,000 or more in your initial deposit, use this link instead so you can receive a $50 bonus.

Sleek and Simple Mobile App

 
As SoFi has expanded beyond simply being a student loan refinancing company, they’ve built an app that is a one-stop-shop for all their products. Here is a screenshot of a Watchlist on SoFi Invest. The Watchlist is where you can add stocks and ETFs you want to keep track of but haven’t invested in yet (if you have invested in a stock or ETF you will see it above the Watchlist in the Invest Holdings section).

If you look closely at the bottom of that screenshot, you can see that you can navigate quickly and easily to your loans or bank account within the app, if you are using those services from SoFi.

Below is an example of what an ETF looks like when you click on it for more detail:

Purchase fractional shares, or “bits” of a stock

 
One benefit that SoFi Invest offers is “Stock Bits.” You can essentially invest any amount of money in a stock, regardless of whether it is equal to one share or not.

For example, CVS Health is trading for around $65. I can invest just $5 into that stock. Or $10. Or $100. It doesn’t matter whether it equals the price of a full stock or not.

This is a nice feature because sometimes it seems like people don’t start investing because they don’t have much to invest. That is a totally legit concern. But with stock bits you can invest small amounts consistently over time. $20 here, $50 there…the most important part of investing – and most things in life – is just getting started.

Reminder: SoFi Invest is currently running a short-term promotion where you can receive $50 if your opening deposit is $1,000 or more. Don’t have $1,000 to deposit on the app? Use this link to sign up instead.

$1 Minimum Balance Requirement

 
Big benefit of this app: you can get started with SoFi Invest for just $1.

The cost to SoFi to set up, vet, and maintain your account is certainly more than $1 a year, but by offering the extremely low $1 minimum required balance they don’t shut out smaller investors or people who may be using SoFi as a secondary brokerage account (myself included).

Zero Stock and ETF Trading Fees

 
There has been a trend the past year in the financial space of offering zero fees for most stock, ETF, and mutual fund trades. SoFi is no exception: they don’t charge you for stock and ETF trades.

This is where we get to a drawback of SoFi: they don’t offer mutual fund trades.

If you want to buy and sell mutual funds, you will have to pick another platform.

I personally don’t see this as too big of a drawback. People will debate to the end of time which is better, mutual funds or ETFs, but the reality is that there is a massive selection of ETFs. For the average investor there are certainly more ETF options than they could possibly need, so missing out on mutual funds isn’t a huge deal. Plus, you can always open an account at Fidelity or another brokerage if you really want to be exposed to mutual funds instead of ETFs.

Additional Features

 
There are a few things that are worth mentioning that I haven’t hit on yet:

• Cryptocurrency Trading – Crypto isn’t the craze it was a couple years ago, but Bitcoin is up over 65% year-to-date at the time of this writing. If you are interested in trading crypto, SoFi makes it easy for you. Prior to a product like SoFi Invest, it could be quite difficult and confusing to figure out how exactly you can invest in crypto. For example, a couple years ago you had to create a CoinBase account, convert USD to Bitcoin, and then transfer to another app to actually trade in non-Bitcoin cryptocurrencies.
   
  It’s worth noting that unlike stocks and ETFs, crypto trades do come with fees. Crypto trades require a $10 minimum value per trade and a 1.25% fee per trade.

• Retirement Accounts – You can open an IRA with SoFi, which would be a (somewhat) separate product from what we have gone over so far. The easiest way to get started is to first open a SoFi Invest account and then add a SoFi IRA through the app. The IRA comes with some cool features, letting you decide whether to take a DIY approach or allow the automated robo-adivsor technology manage it.

• Benefits for all SoFi Users – Regardless of which SoFi products you use (SoFi Invest, SoFi student loan refi, SoFi personal loan, etc.) there are some free benefits that all SoFi users receive. These change from time-to-time, but they can include live invite-only events, career coaching, will drafting, and more.

To sign up and get started on SoFi Invest you can use this link.

If you plan on depositing $1,000 or more in your initial deposit, use this link instead so you can receive a $50 bonus.

That’s a huge difference! Possibly the easiest $500 I will make each year.

Even if you don’t have a full emergency fund, you still shouldn’t accept rock-bottom interest rates on your savings. Banks are making billions in profits each year because people are parking their cash and getting almost nothing in return.

The national average interest rate on a savings account, according to Bankrate, is 0.10%. There are a few banks offering 0.55% or more, though, or at least 5x the national average.

I used to be like many people who kept a checking and savings account at the same bank. Unfortunately banks take advantage of customers who do this by giving them a savings account with a rock-bottom interest rate, like 0.01%, because they know there is a good chance they will keep a savings account open if they also have a checking account at their institution.

Instead I instead propose opening a (no fee) checking account at a bank that is convenient, and a savings account at a bank offering a high interest rate. This gives you the best of both worlds, since you have the convenience of a bank with physical branches and convenient ATM locations, while also taking advantage of a savings account at a bank that is giving you the interest rate you deserve.

This list focuses on banks with high interest rates on savings accounts, where you can park your emergency fund.

 

 
I’ve personally been using CIT Bank for over a year now, and they have consistently given me a high interest rate and good customer service. While businesses can change strategy over time, I get the sense that they are committed to offering a high interest rate.

CIT Bank requires $25,000 as a minimum balance to receive their high interest rate, but you can get around it. As long as you deposit $100 a month into the account. Meaning, you can open the account with $100 and deposit $100 a month each month after that you will get their high interest rate.

Note: At the time of this update CIT Bank does lag behind Ally and Marcus by 0.05%, but we’ve seen a lot of movement for rates of all savings accounts in 2020. Given the uncertainty around COVID and the unprecedented economic impacts the past few months, I fully expect all banks to move around a bit. For much of the past year or two CIT Bank has offered the same or higher rate as its competitors. We’ll see where Ally and Marcus move the next few days, but I wouldn’t be surprised if they drop to 0.55% or lower.

Current APY (Annual Percentage Yield): 0.55%

Required Minimum Deposit: $25,000 or deposit $100 a month into your account

Ally’s high yield savings account is another good option if you want to shift your money from a low-interest savings account to one with high interest.

Ally’s Annual Percentage Yield is currently 0.25% better than CIT Bank – though I fully expect a drop any day now. It also has another advantage over CIT Bank as there is no required minimum deposit to get Ally’s high interest rate on your savings.

Current APY (Annual Percentage Yield): 0.80%

Required Minimum Deposit: No required minimum

Marcus by Goldman Sachs’ high-yield savings account is very similar to Ally in the sense that there is no minimum deposit required. At the time of this writing Marcus had a worse rate than Ally.

Current APY (Annual Percentage Yield): 0.60%

Required Minimum Deposit: No required minimum

SoFi is short for Social Finance, Inc. It was founded in 2011 by four Stanford students with the specific purpose of providing more affordable options for student loans.

Since it’s founding SoFi has raised over $2.5B and has expanded to offer a wide range of banking products beyond their core student loan refinancing option. For example, they launched a high-interest no-fee bank account called SoFi Money. They also offer mortgages, personal loans, and investment services.

SoFi has (smartly) diversified their offerings, but most people likely still associate them with student loan refinance. It’s the company that most people think of first when they hear “student loan refinance.”

I recently refinanced my student loans with SoFi to see what the process was like. In this post I’ll share my experience refinancing with SoFi as well as a full review of their student loan refinance product.

Get a $300 Welcome Bonus when you use our link to refinance your student loans through SoFi.

SoFi Student Loan Refinancing: How Easy was the Process?

 
A few years back I opened a bank account for one of my businesses. I did this through Wells Fargo and it was an extremely frustrating process. Ultimately I ended up having to go to a physical branch during my lunch break and talk to a banker. I ended up being there for almost a full hour.

It blew my mind how outdated the process was, as most of the time was spent answering questions that the banker typed into fields on a screen. It made no sense to me why this couldn’t be done 100% online.

Comparing the SoFi student loan refinancing process to that was like night and day. Some key takeaways:

• 100% online.

• No phone calls were required at any step in the process.

• The process of gathering information such as income, student loan debt, and other pertinent information was easy. The whole process took less than ten minutes.

After being approved for my loan the next step was to approve the final disclosure. Then, after about a week the loan was funded. SoFi took care of paying off the existing loans that were being refinanced.

The process was easy and completely entirely online. This is exactly how it should be, since the service they are offering is relatively straight forward.

A few other things worth mentioning include:

Fees: SoFi does not charge application fees, origination fees, or prepayment penalties for student loan refinance.

Servicer of Loans: SoFi private student loans are currently serviced by MOHELA. MOHELA stands for Missouri Higher Education Loan Authority, which is a company whose primary business is servicing federal student loans.

Does it matter that MOHELA is the company servicing SoFi private student loans? What matters more, in my opinion, is the fact the customer-facing company is SoFi. If MOHELA does a poor job of managing SoFi student loans, SoFi is going to hear about it. If they perform poorly for any extended period of time SoFi likely will drop them for another servicer.

Minimum Amount Refinanced: $5,000 except in California where the limit is $10,000

SoFi Student Loan Refinance Rates

 
At the time of publication the fixed rates for SoFi student loan refinance were 3.20% APR to 6.48% APR with AutoPay and 2.16% APR to 6.33% APR with AutoPay. The AutoPay discount is 0.25%. The interest rate on variable rate loans are capped at either 8.95% or 9.95% depending on the terms of the loan. For the latest rates, and your specific rate, go to SoFi.

Income and credit history are two things that will impact your interest rate. The term of your loan will impact your rate as well; a 5-year loan is going to have a more favorable interest rate than a 15-year loan.

Because you can get a more favorable interest rate depending on the term of your loan, some people will refinance at regular intervals. For example, they may start with a 15-year loan and then when they are down to ten years left of payment will refinance with a 10-year loan, then again when they get to five years remaining on their loan. We’ll discuss rate-shopping in more detail shortly.

Other Benefits of Refinancing your Student Loans with SoFi

 
One of my biggest criticisms of banking products is that they are simple and interchangeable. Student loan refinancing isn’t a unique product. The reason Apple is able to charge a premium is because their products are unique. Loans aren’t unique.

SoFi has sought to address this issue in a couple of ways. First, their original value proposition was ease of use and offering low rates. They still have both, but other competitors are now close to matching them on these fronts, and arguably beating them at times.

SoFi has been offering unique “extras” for years now. They include:

• Rate Discounts on Additional Loans – Once you have one loan with SoFi, they offer a 0.125% rate discount on any additional SoFi loans.

• $300 Bonus – If you use our link and end up having a loan funded through SoFi, you get a $300 bonus Keep in mind that this must be with a new email account that hasn’t received a quote from SoFi before.

• Events – SoFi historically has had a lot of free events for their members, including happy hours, wine tastings, panel sessions, and dinners to name a few. Unfortunately I currently only see one event in one city listed on their website. My sister refinanced a loan through SoFi a few years back and has been to multiple events in Minneapolis that she spoke highly of, so I hope these events continue.

• Career Coaches – When you have a loan with SoFi you unlock free access to SoFi Career Coaches. This makes a lot of sense, as the more money their members make and the quicker a laid off member finds another job, the more likely they are to continue to make payments on their loans.

These are nice extras, especially the referral bonus, but ultimately a low interest rate is the benefit of refinancing student loans.

Should you Refinance your Student Loans with SoFi?

 
The answer to whether you should refinance your student loans with SoFi should be approached two-fold. First, should you refinance your specific student loans in the first place, whether it is with SoFi or anyone else? If the answer is yes, then the second question is should SoFi be the company you refinance your student loans with?

Let’s tackle these two questions one-by-one.

Should you refinance your loans in the first place?

 
If you decide to refinance your student loans there would have to be some sort of savings. Interest rates with most private and federal student loans are relatively high compared to what you will get through refinancing, so that hurdle is cleared easily. My wife and I had private loans from Wells Fargo that were 10.0%+, but even federal student loans can be 6.0%+.

First, if you have private student loans and you can get a better deal through refinancing it virtually always makes sense to refinance. If SoFi offers you 4.50% fixed interest rate and another private lender has your private student loans at 7.5%, clearly SoFi is a better deal.

But what about federal student loans? This is a bit more complicated. Federal student loans come with options for deferment, forbearance, income-driven repayment plans, and opportunities for loan forgiveness. When you refinance a federal student loan into a private student loan you lose all those benefits and protections. And there’s no going back.

That means before you refinance a federal student loan you need to be certain that you are comfortable giving up the benefits of those loans. Read when you should and shouldn’t refinance student loans for more on this.

If Yes, You are Refinancing – Should You Refinance with SoFi?

 
My experience with SoFi has been a positive one. From a process standpoint they have it down. They also offer additional perks such as SoFi Career Counselors and their loans have no fees.

More important than that is interest rate. I shopped over five lenders and SoFi offered the lowest interest rate.

If you have private student loans you should shop around for student loan refinancing at least once a year. You should get quotes from at least three different lenders. I used Credible to get rate quotes from a variety of lenders and compared those rates to SoFi. SoFi won out.

Click the button below if you want to get a free rate quote for student loan refinance with SoFi.

Remember, if you use any link within this post, including the button below, you will get a $300 bonus if you refinance with SoFi.