In this episode* we’re talking banking and credit cards. My guest is Kim Palmer, a credit card and banking expert at NerdWallet.
We’ll cover:
- How to choose the right bank
- Not getting screwed in fees
- How to evaluate credit card offers
- Getting your finances to the next level when you already have your s*** together
If you’re usually working with a low balance, look for low or no fee banks. Overdrafting is a huge source of fee revenue for banks. But there’s a new kid on the block: the online banks. Banks like Ally, Simple, Aspiration are able to offer no-fee accounts because they are able to keep costs down because there are no brick and mortar branches. I like Magnify Money for comparing bank offers.
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Banking
Make sure your money is going to a bank that is FDIC insured, most are. The FDIC exists to protect customers AND the banks to avoid a bank run, like the one depicted in It’s a Wonderful Life.
If you haven’t seen it, go watch it! I also share a bit of trivia about that great dancing scene where the floor opens up onto a swimming pool.
Non-Money Minute
We talked about the Shimanami Kaido, a stunning cycling route in Japan. If you ever find yourself in that part of the world, I highly suggest making the 70km trek.
Here is a photo of one of the breathtaking suspension bridges (and here is a photo of my breathtaking sunburn).
Navigating a Minefield of Credit Card Offers
Kim Palmer helped me evaluate 3 different credit card offers. We covered a cash back card, a charge card, and a card with a scary penalty APR.
Did you know that the scary pamphlet that comes with your credit card is called the Schumer Box, named after senator Chuck Schumer for his work on a consumer advocacy bill.
Planning for Your Future
Kristen Euretig from Brooklyn Plans is back to help a listener plan for the future. I also recommend getting your feet wet in investing with a robo-advisor.
Want to know your worth? You can use an app like Mint.com or Personal Capital (my favorite), but actually entering everything manually into a spreadsheet is a humbling exercise that I highly recommend you try at least once. Look! I made a template for you: Moneysplained Net Worth Calculator.
*Moneysplained is an educational podcast and should not be considered investment advice.