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Yahoo
12-07-2025
- Business
- Yahoo
I'm a Bank Expert: 7 Reasons You Should Ditch Your Traditional Bank for an Online Bank or Neobank in 2025
According to a MarketWatch Guides survey, 56% of Americans access their banking accounts primarily through mobile apps, and only 16% regularly visit physical bank branches. The survey also revealed that 13% of Americans never visit a bank. During the Capital One outage earlier in the year, many banking customers were unable to access their accounts and funds. While online banks and neobanks are gaining popularity, not everyone has an account yet. Read Next: Explore More: Why should people consider a switch to an online bank or neobank this year? Here are seven reasons you could consider making the switch and how they could benefit your finances. 'If you're like the majority of Americans who rarely visit their physical bank, you're essentially paying higher fees and accepting lower interest rates to make up for the costs of maintaining physical locations,' said Laurie Sepulveda, a CEPF and MarketWatch Guides banking expert. If you're already banking digitally, you may not require access to a physical branch. You'll want to think about the last time you went in person. The reality is that you could be paying banking fees for a physical location that you may never visit. Be Aware: 'Most neobanks operate without the need to maintain physical branches, which often means lower fees for their services, better interest rates and more savings for end users,' said Roman Eloshvili, a banking expert and founder of XData Group. Digital banks and neobanks generally offer lower fees and better rates, as they don't incur the expenses associated with maintaining physical locations to provide in-person banking services. The savings can be passed down to customers, and you could keep more of your money in your account. Sepulveda pointed out that online banks lead in digital security because it's part of their core business model, not an add-on service. 'Traditional banks have legacy systems that present more challenges for securing both digital and physical access points,' she said. Online banks can also offer more advanced features, such as fraud monitoring, biometric authentication and instant account alerts. This additional security and innovation can help you save money by avoiding potential issues with fraud. Traditional banks may not always have the best user experience when it comes to apps and online financial transactions. Eloshvili noted that the user experience as a whole is generally better with digital banks, as users can receive instant notifications, full access to a suite of tools and 24/7 support. Many younger banking customers are accustomed to living on their smartphones and expect to be able to conduct their banking and financial transactions through apps. You can start by going over the reviews of online banks or neobanks to see what others are saying to ensure that you have your money stored somewhere where you can easily access it and handle your transactions smoothly. Sepulveda said that, according to a MarketWatch Guides survey, the most popular banking activities are paying bills, transferring funds between accounts and tracking spending. Since online banks make these tasks easier and more efficient, it may make sense to make the switch to match your banking habits. Online banks can also offer higher-quality budgeting tools, from spending categorization to financial insights. If you're looking to gain a better understanding of your finances or get better with your spending habits, you can use these tools to assist you. Since online banks and neobanks are built for the digital world, they also do a great job accommodating that demand. The experts pointed out that you can get faster service and greater control over your finances. You won't have to make an appointment with a consultant or wait in long lines when you have any questions. Most of the time, all of the financial help you could ask for is available at your fingertips. This means if you're looking for advice on paying down debt, saving up for a home or figuring out your retirement accounts, you could likely find it easier with a bank that's set up for the digital experience. Eloshvili emphasized that many neobanks facilitate the management of multiple currencies, including access to crypto assets. Since these accounts are constantly evolving to meet modern financial habits, you'll likely have greater flexibility over how you manage your finances and investing habits. Since traditional banks can struggle to keep up, you'll want to think about making the switch to an account that matches what you're looking for. More From GOBankingRates 7 Things You'll Be Happy You Downsized in Retirement This article originally appeared on I'm a Bank Expert: 7 Reasons You Should Ditch Your Traditional Bank for an Online Bank or Neobank in 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
14-06-2025
- Automotive
- Miami Herald
Car buyers should be nervous about this emerging trend
If you are in the market for a new vehicle, signs suggest that the buyers' market, which thrived in the first half of the year, is coming to an end. Due to the uncertainty surrounding President Donald Trump's trade war, dealers have increased incentives to combat consumer sentiment, which has been in the tank since Trump took office. Related: Car buyers should shop these brands for the best tariff deal Nearly half of American drivers cite car expenses as the reason they can't save any money, and the average American spends about 20% of their monthly income on auto loans, fuel, insurance, and maintenance. Most financial experts cap the monthly income you should spend on a vehicle at 15%. According to a MarketWatch Guides survey, about 10% of drivers say they spend 30% of their monthly income on driving, while another 12% said they "found themselves living paycheck to paycheck due to the financial strain of their cars." So, finding the right car for the right price is the name of the game. According to a new analysis from Bank of America, this year has been good for car buyers. But things are about to take a turn. Image source: Bounds/Bloomberg via Getty Images Car dealers have piled on the incentives in recent months to get customers through their doors. The plan worked. Auto sales have climbed sharply in recent months as consumers were motivated by the incentives and the need to buy vehicles before any tariff-related price increases. But Bank of America is now saying that the growth it saw in consumer vehicle loan applications has declined from its peak in April, "suggesting that 'buying ahead' has largely run its course." Bank of America expects lower-income and younger buyers to feel the most pain, as its data shows that median car payments have grown faster than new and used car prices since 2019. Shockingly, of those households with a monthly car payment, 20% have a payment over $1,000. Related: Car buyers notice a disturbing trend at the car lot Meanwhile, Baby Boomers, Gen X, and older Millennials all saw decreases in the percentage of their members paying more than $2,000 a month for their vehicles in the past few months. Gen Z and younger Millennials saw an increase in members paying over that amount. Bank of America also saw an increase in $2,000 a month auto bills among people making less than $50,000 and between $50,00 and $100,000. Meanwhile, that type of spending decreased among people making more than $100,000. "Bank of America payments data shows that overall median car payments are already more than 30% higher than the 2019 average and have now outpaced both new and used car prices, possibly as there is a push towards more expensive cars," analysts Taylor Bowley and David Tinsley wrote. However, the majority of automakers reported reducing incentive spending in May. Dealers like Volkswagen, Mazda, Land Rover, Volvo, and BMW all reduced incentive spending by more than 10%. Incentives were also notably lower month over month for Stellantis. Car buyers must consider several factors before making a purchase. Of course, the vehicle itself is only part of the expense, as it will need insurance, maintenance, and gas to run. In addition to capping your car payments at about 15% of your monthly take-home, financial experts also recommend shoppers aim for a 20% down payment, a 36 to 48-month loan term, and expenses (including insurance) at between 8% and 10% of your gross monthly income. Experts also recommend that you know your credit score and loan approval amount in advance and that you shop around with different lenders for the best rate. Related: New car prices are rising; here's where to get the best deal The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
USA Today
28-05-2025
- Automotive
- USA Today
What states have the highest, lowest auto insurance rates?
What states have the highest, lowest auto insurance rates? Show Caption Hide Caption How to save money on car insurance This app can help save you money on car insurance. ProblemSolved, USA TODAY The average auto insurance rate in the U.S. is expected to go up by 7.5% in 2025, according to a new analysis by MarketWatch Guides. The hikes will add an average $182 to the average annual full-coverage premium nationwide raising it to $2,615 from $2,433. Drivers in several states face increases of $200 or more. With the average American worker making $68,000, auto insurance will consume nearly 3.9% of annual income and significantly more in states with lower median incomes, MarketWatch Guides said. MarketWatch Guides calculated average auto insurance rates using data from Quadrant Information Services for a 35-year-old single driver with a clean driving record and good credit who drives a 2023 Toyota Camry. Why are auto insurance premiums going up? The auto insurance industry faced headwinds a few years ago in 2022 and 2023, said Daniel Robinson, senior auto insurance research and writer at MarketWatch Guides. There was increased frequency and severity of natural disasters, like floods, wildfires, and hurricanes, he said. "These disasters led to higher-than-expected claims, straining insurers' bottom lines," Robinson told USA TODAY. Insurance premiums have been on a steady climb since dramatic pandemic-era disruptions spurred rate hikes, but have slowed to smaller increases, he said. A shortage of vehicle parts and skilled auto repair workers that emerged during the pandemic era when there were supply chain snarls still plays a role in increased repair costs today, Robinson said. Insurers unfortunately took the brunt of those repair costs, which required them to raise premiums to stay financially stable. "We've also seen prices of cars in general rise in recent years due to inflation and increased demand. This adds another compounding effect," he said. Tariffs, which have led to an increase in the cost of imported car parts, also make repairing cars more expensive and are passed on in higher insurance premiums, Robinson said. What states have the highest auto premiums? Drivers in Louisiana pay the most, with an average of $3,481 per year or $290 a month for a full-coverage policy. Louisiana also has one of the highest rates of highway fatalities, with 19.7 deaths per 100,000 residents, according to an Insurance Institute for Highway Safety analysis of data from the U.S. Department of Transportation's Fatality Analysis Reporting System. The national average is 12.8 deaths per 100,000 residents. Vermont drivers have the lowest average premium at $1,624 per year on average or $135 a month. The state has a below-average rate of highway fatalities at 11.7 deaths per 100,000 residents, according to MarketWatch Guides. More money: Add auto insurance to the list of things increasing in price with Trump's tariffs Where is car insurance increasing the most? MarketWatch Guides' analysis found the most dramatic insurance premium price hike was in Washington, D.C., where premiums rose by 20% from $2,684 to $3,209. Maine and South Carolina also saw big increases of 10%. In South Carolina, a 10% raise in premiums is $221 more in costs per year, the second-highest dollar amount increase after Washington, D.C. ($525). Nevada had the biggest decreases in premiums. Nevada's average premium fell from $3,549 to $2,889. That's a 19% decrease and a $660 difference. Even though Louisiana is the most expensive state for auto premiums, it had the second-highest decrease in annual premiums in terms of dollar amounts and as a percentage. Premiums in Louisiana fell by 14% in 2025 or $576. Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@ or follow her on X, Facebook or Instagram @blinfisher and @ on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.
Miami Herald
10-05-2025
- Automotive
- Miami Herald
Car buyers notice a disturbing trend at the car lot
Car ownership is seen as less of a privilege and more of a necessity in America. Thanks to decades of building cities to accommodate private vehicles, the only efficient way to travel in most places in this country is to drive. Don't miss the move: Subscribe to TheStreet's free daily newsletter New York City, Washington D.C., and Boston are some of only a handful of American cities that are actually walkable. Other major cities like Los Angeles, Houston, and Atlanta make walking or cycling nearly impossible. In those cities and most rural towns, having a vehicle is non-negotiable. But while vehicles are needed, they are becoming increasingly unaffordable for most Americans. Statistics show that Americans will prioritize owning a vehicle over paying other expenses. Related: Ford announces desperate move to battle tariffs Nearly half of American drivers cite car expenses as the reason they can't save any money, and the average American spends about 20% of their monthly income on auto loans, fuel, insurance, and maintenance. Most financial experts cap the monthly income you should spend on a vehicle at 15%. According to a MarketWatch Guides survey, about 10% of drivers say they spend 30% of their monthly income on driving, while another 12% said they "found themselves living paycheck to paycheck due to the financial strain of their cars." With car prices expected to climb in the coming months thanks to tariffs, and unemployment also expected to rise for the same reason, car buyers are being cautious about their next purchases. Unfortunately, the latest data will not reverse this trend. Image source: Getty Images President Donald Trump has made his love of tariffs known for months, so some industries have been planning for the current environment. Changes to monetary policy led consumers on a buying spree earlier this year. "Consumers jumped initially to buy ahead of tariffs, driving prices higher. Now vehicle supply is tighter, prices are rising, and incentives are falling," Cox Automotive said in a recent report. However, now that the tariffs have officially landed, car buyers are waiting to see what the Federal Reserve does with interest rates before they make their next purchase. Related: Tesla rival makes huge announcement about what's coming in 2026 Dealer incentives are down, vehicle prices are up, and auto loan rates are just 36 basis points below the 25-year high reached last year. On Wednesday, the Fed left interest rates at their current levels. The central bank expects tariffs to drive inflation by at least a full percentage point, and while employment has held strong, that could also change as the economy feels the effects of the trade war. "We are expecting volatility this summer in rates, prices, and sales. When rates and prices move higher, sales are likely to fall," the report said. "Chair Powell said today that the Committee doesn't have to be in a hurry. It's likely that car buyers will be taking a similar approach as well." Car buyers must consider several factors before making a purchase. Of course, the vehicle itself is only part of the expense, as it will need insurance, maintenance, and gas to run. More Automotive news: Ford announces desperate move to battle tariffsAmerican car company takes drastic action in response to tariffsCar buyers rejoice - you just got great news about tariffs In addition to capping your car payments at about 15% of your monthly take-home, financial experts also recommend shoppers aim for a 20% down payment, a 36 to 48-month loan term, and expenses (including insurance) at between 8% and 10% of your gross monthly income. Experts also recommend that you know your credit score and loan approval amount in advance and that you shop around with different lenders for the best rate. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
26-04-2025
- Business
- Yahoo
What If Your Groceries Doubled in Price?
There is no easy way around the fact that everything is getting more expensive these days, especially groceries. With the global economy fluctuating up and down and no ease in sight, consumers are left to foot the bill, which has often become twice as much money for them, if not more. Consider This: Read More: If you are seeing your groceries prices double, here are some tips from experts on what to do. 'One of the shopping mistakes many make that ends up doubling their grocery bills is they ignore generic brands and opt for name brands instead,' highlighted Aaron Razon, a personal finance expert at Couponsnake. It was noted that this is usually because generic brands are deemed to be inferior in quality, which is why they have lower prices. 'However, many generic and store-brand products often offer similar quality, but at a lower price point, and this makes them a cost-effective alternative that can significantly slash your grocery bills without compromising taste or nutrition,' Razon shared. By considering generic or store brand products, Razon pointed out how the average consumer would be able to make their grocery shopping more budget-friendly, and have a couple of extra dollars to allocate toward other essential items. Be Aware: Look at your weekly grocery haul and see what 'splurges' you can cut back on. Instead, focus only on what you need, said Laurie Sepulveda, a personal finance expert at MarketWatch Guides. Sepulveda cited data in a new MarketWatch Guides survey that found 43% of Americans are avoiding splurging on treats and prestige-priced goods, making this the most popular strategy. 'Fancy prepared foods can eat away a big chunk of your grocery budget,' Sepulveda described. 'Many times, you can recreate splurges at home for a lot less.' According to Razon, another thing consumers can do if they find that their grocery bill doubling is to avoid processed and pre-prepared foods because they are more expensive than whole ingredients. In fact, by choosing whole foods like vegetables, fruits and grains, consumers would be saving money and benefitting from the superior nutritional value these foods provide. This might add some extra stops and the hassle of going multiple places to get your full grocery list, but Chris Motola, the National Business Capital Special Projects Editor and Financial Analyst, explained it could help lower your bill. 'Supermarkets and many other types of businesses will have a loss leader at any given time,' Motola went on to say. 'That is, a product that's being sold cheaper than cost. The idea here is that the product attracts customers to the store who will then also spend money on more profitable products. Strategically buying loss leaders and limiting spending on other products during your shopping run can help keep your grocery bill down.' Motola suggested consumers should be willing to shop at multiple stores. 'Different stores will have different sales and loss leaders at any given time,' it was noted. 'It takes some planning and a little more time, but if you live in an area with a healthy amount of supermarket competition, you can save money by strategically buying items on sale at each,' added Motola. More From GOBankingRates 5 Types of Vehicles Retirees Should Stay Away From Buying 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth 4 Things You Should Do if You Want To Retire Early How Much Money Is Needed To Be Considered Middle Class in Every State? This article originally appeared on What If Your Groceries Doubled in Price? Sign in to access your portfolio
