We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.
So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners.
Caren is a former banking and studies writer for NerdWallet, where she used data to analyze the long-term effects of people's day-to-day financial decisions. Her personal finance articles have appeared in Money, AARP and USA Today.
Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money.
More than three-quarters of respondents to a recent U.S. Bank survey said they never carry more than $50 in currency with them. Nearly one-quarter said they keep $10 or less.
And, when given a choice between paying someone with cash or a peer-to-peer (P2P) payment app, 47% said they would choose the digital option, as opposed to the 45% who said they'd rather use cash.
Michael Moeser, director of payments practice at the banking advisory firm Javelin Strategy, says that the growing usage of P2P payments is one reason people are carrying so little cash. Using P2P apps, people can easily split expenses with friends by transferring money into their accounts.
Even more important, he says, is the rise of digital payments for e-commerce transactions. Rather than going to the grocery store and paying with cash, for example, people now order groceries online and pay electronically.
These trends, combined with the now-widespread use of debit cards, have made carrying cash a rarity for many. Fully half of respondents to the U.S. Bank survey say they carry cash no more than 15 days per month.
So, ATM use must be falling off too, right? Yes and no. A Federal Reserve study found that the number of ATM cash withdrawals did fall from 2009 to 2012 — from 6 billion to 5.8 billion. That figure remained flat as of 2015. But as the number of P2P payment providers increases, it’s possible that could change.
Overall, there’s no doubt Americans’ cash habits are changing. Sending money has become virtually as easy as texting as social media apps have added payment options. Snapchat, Facebook and Skype now offer money transfer within their messaging services, and Apple plans to roll it out in its Messages app.
4.20%SoFi members with direct deposit can earn up to 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 1.20% APY on checking balances. There is no minimum direct deposit amount required to qualify for the 4.20% APY for savings. Members without direct deposit will earn 1.20% APY on all account balances in checking and savings (including Vaults). Interest rates are variable and subject to change at any time. These rates are current as of 04/24/2023. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
4.75%Annual Percentage Yield (APY) is accurate as of 05/09/2023. APY is variable and subject to change at any time without notice. No monthly service charge. No minimum balance requirement. Must fund with 15 days of opening account.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
These cash accounts combine services and features similar to checking, savings and/or investment accounts in one product. Cash management accounts are typically offered by non-bank financial institutions.
4.50%Annual percentage yield (variable) is as of 5/8/23. 5.00% APY with a $75K deposit or 4.75% APY with a $25K deposit. New customers only with qualifying deposit. Terms apply.
Min. balance for APY
$0
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
CDs (certificates of deposit) are a type of savings account with a fixed rate and term, and usually have higher interest rates than regular savings accounts.
5.10%The annual percentage yield is effective as of Friday, May 19, 2023. APY is a fixed rate and a $1,000 minimum balance is required. Bask Bank will pay this rate and APY through your CD maturity date. Fees could reduce the earnings on your account, and an early withdrawal penalty may be imposed for early withdrawal. If your CD is not funded with at least $1,000 within 10 business days after the date the account is opened, it will automatically be closed. Read the full terms here: https://www.baskbank.com/terms-and-disclosures.pdf
3.30%Your annual percentage yield can be as high as 3.30% based on the following combined rate rewards: direct deposits (not including intra-bank transfers from another account) totaling $1,500 or more each month will earn 0.40%. A qualifying direct deposit is required for the remaining interest rate qualifications to apply. Ten (10) point-of-sale transactions per month using your Rewards Checking Visa® Debit Card for normal everyday purchases with a minimum of $3 per transaction, or enrolling in Account Aggregation/Personal Finance Manager (PFM) will earn 0.30%; maintaining an average daily balance of at least $2,500 per month in an Axos Self Directed Trading Invest account will earn 1.00%; maintaining an average daily balance of at least $2,500 a month in an Axos Managed Portfolio Invest account will earn 1.00%; and making a monthly payment to an open Axos Bank consumer loan (commercial and business loans excluded) via transfer from your Rewards Checking account will earn a maximum of 0.60%.
Monthly fee
$0
Money market accounts pay rates similar to savings accounts and have some checking features.
Money market accounts pay rates similar to savings accounts and have some checking features.
Rather than see those digital-friendly consumers drift away to P2P platforms, banks hope to hang on to them by offering payment options within their mobile banking apps. Zelle, a P2P platform used by more than a dozen major banks (including U.S. Bank), is one example. Getting customers to use banking apps more often increases banks’ opportunities to sell them additional bank products beyond checking and savings accounts.
If you hate to carry cash and are interested in the emerging array of payment apps, there are plenty of options out there. Be sure to compare all the various features, including transfer speed, fees, security and user experience. In the end, some people may always prefer keeping some cash on hand. But these days, you don’t necessarily have to.
