There are many ways you make extra money online, one of the most popular is using survey platforms. By using one of these platforms' users earn cash or gift vouchers that they can use freely.  

Below we have compared the top 3 survey platform to earn extra cash so you can decide which one you should use. You could use multiple platforms to make the most of the rewards, but remember, consistency is key as earning points can take some time.  

The three platforms include Survey Junkie, Inbox Dollars and Swagbucks.  

Our choice: Swagbucks  

After research, we would choose Swagbucks to sign up to due to the variety of ways to earn and the sign-up bonuses! 

• Swagbucks

Recognised by Linkedin as a legitimate and reliable way to earn money online since 2008. There are 20 different ways to earn money, giving users a variety of tasks and keeping it interesting. The main ones include, Surveys, paying games, watching videos and online shopping. This means you can include your normal browsing behavior's and earn. 

Sign Up bonuses – A $10 sign up bonus as well as bonus points when you refer a friend. Additionally, if you earn 300 points in your first 30 days the platform will award you with 300 free points the following month. A great way to stay motivated and maximize your earnings 

Earning potential – On average users earn $2-5 a day equaling $730-1,825 a year. 

Drawbacks – Users report waiting a long time for their rewards to be processed, which is not compatible with those who are looking for instant cash. 

 Interested? Find out more about Swagbucks here.

• Inbox Dollars 

Established in 2000 and recognized as a Better Business Bureau accreditation. A platform you can trust to pay you for your completed tasks which include surveys, watching videos and using the platform's web engine for genuine searches. 

Sign up bonuses – A low signup bonus of $1. 

Earning potential – Average of $50-300 a month for users. When you use the Inbox Dollars search engine you win scratch cards to earn more. 

How to redeem – You can redeem your points in cash via PayPal or in gift cards to popular retailers. 

Drawback- You must earn a minimum of $15 before being able to redeem and the processing time can take a long time. 

Interested? Find out more about Inbox Dollars 

• Survey Junkie

One of the most popular survey platforms with over 20 million users due to its accessible and simple interface. You can complete surveys, watch videos, play games as well as sign up to surf-to-earn and be rewarded when you browse the web. Surf-to-earn allows Survey Junkie access into your browsing habits so they can track your patterns and trends. 

Earning potential – Average of $40 a month when completing 3 surveys daily  

How to redeem – Through PayPal to redeem cash or request gift cards for retailers such as Target, Walmart and Amazon.  

Drawback – Users report experience limited number of tasks once their account matures, they have fewer chances to earn points. 

 Interested? Find out more about Survey Junkie here.

So, Which one is best? 

Swagbucks – Best for those looking for a variety of ways to make money online with great bonus rewards. 

Inbox Dollars – Best for those who are looking for a reliable way to make money and those who are often using their search engine to browse and shop. 

Survey Junkie – Best for those looking for simple ways to make extra money through surveys. 

Making money online  

Survey Junkie has over 20 million members using their services to make money easily online. As one of the most well-known platforms for earning money through surveys, you can start today and join the millions earning extra.  

Making money online is becoming increasingly popular as more people look for easy ways to increase their monthly income around their current day-to-day jobs. Completing surveys is one way to do this and Survey Junkie is one platform which offers you an accessible way to do this. 

What is Survey Junkie? 

Survey junkie is a user-friendly platform so that anyone can start making money online by completing surveys. Brands want to hear from you, you will be giving your opinion on products, services, and more so that they receive consumer insights. 

Once you create an account you will have surveys that match your preferences in interests, length of time and points earned. When you earn enough points, you can convert them into real money either through PayPal or e-Gift cards that you can use. 

How to get started on Survey Junkie 

Sign up to Survey Junkie if you are 18 years old or over so you can start claiming rewards.  

• You will be asked several profile questions so that the platform can then match surveys to your relevant interests and background. This way the insights are accurate and will likely be something you are interested in. 

• You can decide how you participate, whether that is through sharing your opinions via surveys or focus groups for rewards. Alternatively, you can sign up for surf to earn which will automatically share digital browsing behaviors. This will track the websites you use, Ads you see, shopping terms, content you engage with online and more. You will be rewarded when you allow digital sharing on your device. 

How you can earn money 

The more you participate, the more you can earn. Survey Junkie cannot take the place of a full-time job, but it will give you some extra money if you are saving for something, or just need a bit extra.  

If you complete 3 surveys a day in your spare time you could make $40 a month on average.  

Each survey you complete you will earn points; one point is equal to 1 cent on average. So, it may take a while to build up your earnings. 

How to redeem your earnings 

Once you have earned some points you can redeem them through the platform which uses PayPal if you want money.  

You can also redeem them in e-Gift cards for places such as, Amazon, Walmart, Target and more. This could help you build up a pot of money for your shopping.  

Pros and Cons of Using Survey Junkie  

Pros - 

• Flexible Earning – Survey Junkie will offer a highly flexible way to make extra money, allowing you to choose when, how often and which surveys to complete. This gives you full control of your schedule making it compatible with any other commitments you have. 

• Simple and easy tasks – The surveys are straightforward and easy to complete. You’ll be earning money based on your opinions on simple tasks which don’t require any skills. This means you won’t have to set aside much time and you can do it after a hard day at work. 

• User-friendly interface – Survey Junkie is praised by its members for its easy-to-navigate interface. Even those with little tech experience find it accessible.  

Cons - 

• Limited earnings - You do not earn much per survey so it will take a while to build up any significant earnings through this method.  

• Limited number of tasks - After your account matures, users report that the number of available surveys also declines. This means you will have less options to make money. 

• Disqualification - Users also report being disqualified often and unable to complete surveys. This could be because you don’t match the target audience, or the platform determined that answers were not accurate and honest. This can be frustrating after completing long surveys and only be rewarded with a couple of points for trying but not the full amount you expected.  

• Redeeming rewards - It can be tricky to redeem your winnings. You can take out the full balance in cash through PayPal, however if you have 2700 points you will be given a $25 Gift card for your chosen store and have left over points on your account. Gift Cards will only be given in certain increments so you will have to work this out beforehand to get what you want. 

Tips to Maximize your earnings 

- Completing your profile questions so you can have relevant surveys given to you. 

- Logging in to your account daily to check for new surveys. 

- Sign up to surf to earn if you are happy for your data to be shared as you can win more points this way. 

- Referring to friends can often win both of you rewards. 

Make money online using Swagbucks  

What is Swagbucks? 

Swagbucks was founded in 2008 and recognized by LinkedIn as a legitimate and reliable way to earn money online. An online platform where users can earn money by completing activities including surveys, with over 40 million registered subscribers worldwide. It offers over 20 different ways to accumulate points, including completing surveys, playing games, watching videos, and even online shopping. 

It is available to users in the United States, Canada and most countries in Europe. To join you must be at least 13 years old, it is free to sign up offering a flexible way to earn extra income and gift cards for popular retailers. 

How to get started 

It is quick and easy to sign up for Swagbucks and registration is completely free too! 

You can sign up on your phone, iPad or laptop and the process will only take a few minutes. Once you have completed signing up, you will receive a $10 bonus, you can get another bonus by referring a friend to join. 

Another plus to signing up is that within your first 30 days if you earn 300 points then you will be gifted 300 free points the following month too. This will help you maximize your earnings and redeem rewards faster. 

Ways to earn money 

Swagbucks offers 20 different ways to earn points, making it one of the most versatile earning platforms. Some of the methods include; 

Surveys – These on average take 10-30 minutes and you can earn around 50-300 points for these tasks.  

Playing games – You will be asked to download and test a mobile game so that you can then give your opinions to the platforms. This helps the apps gain consumer insight. 

Shopping online – You can earn cashback by shopping online and upload your receipts onto the platform.  

Although the tasks themselves don’t bring in large sums, Swagbucks says it’s possible to make up to $100 a day. However, most users average $2 to $5 a day, which can add up to $730-$1,825 a year in extra earnings. Consistency is key—small daily tasks lead to larger overall earnings. 

Redeeming your earnings 

When you have earned enough points, redeeming them is straightforward. It usually takes around 10-14 days for your rewards to process, something users often complain about. You can choose to cash out via PayPal or opt for gift cards from popular retailers including, Amazon, Target and many others. 

Value – Once you have earned 300 points you can claim a $3 gift card whilst PayPal cash usually starts at 500 points for $5.   

Pros and Cons of Swagbucks 

Pros: 

• Swagbucks offer a variety of earning methods with over 20 ways to earn points so you can mix up how you participate. Regardless of your interests, there will be something for everyone. 

• You can start redeeming your points with as few as 300, which is low compares to other platforms.  

• Swagbucks offers bonuses when you sign up and when you refer a friend so you can increase your earnings without extra effort. 

Cons: 

• The earning potential is low as the average user gets $2-5 a day. This is not a source of income and should only be used as extra money to cover small purchases. You must stay consistent to see rewards build up. 

• Some tasks take longer than expected, users note that often the site will take you through questions before the chosen task which makes the total time longer than stated. This is not compatible for those with busy schedules. 

• Users also report the long process time to redeem rewards. If you are eager for instant rewards this may be frustrating. 

Swagbucks has plenty of options for you to try and if you stay consistent this could be a great way to make extra money for those Christmas presents or the next grocery shop.  

What is Fintech?

Fintech is short for Financial Technology, a term which describes the technology used to simplify and improve financial services. This includes mobile banking, investing apps, cryptocurrency and more. Fintech was created to bring convenience to your everyday financial processes for businesses and consumers. Without knowing it, you have and are using fintech in your everyday finance management.

What does Fintech do?

Fintech is useful for businesses and consumers alike.

From payment solutions to investment platforms, fintech also makes financial services more inclusive by lowering barriers to access. For instance, many fintech applications offer no-fee bank accounts, fractional share investing, and peer-to-peer lending platforms, giving consumers more opportunities to grow their wealth.

For businesses

fintech tools can improve operational efficiency by automating payroll, invoicing, tax filing, and even financial forecasting. It enables companies to streamline their financial workflows, reduce administrative costs, and free up time for more strategic tasks.

For Consumers

Consumers benefit from fintech by having more control over their financial lives. With the rise of personal finance apps, users can track spending, set savings goals, and monitor investments in real-time. The tools provide a complete view of personal finances, helping individuals make informed decisions based on data-driven insights.

What is Fintech used for?

Fintech operates through apps on computers and phones, bringing financial services to us. This is used in various ways including…

Robo-Advisors – Helping people create investment portfolios based on their personal goals and risk tolerance. This offers affordable and simple wealth management solutions for consumers

Payment apps – Such as, PayPal, Venmo and Apple pay make it possible and easy for every to send, receive and manage money from our phones. There are various advantages of using PayPal. They eliminate the need for cash and checks for any payments including international.

Peer-to-peer lending – Platforms such as, LendingClub allow consumers to lend money to others without using banks as intermediaries. This can often provide both parties more favourable rates.

Investment apps – These platforms make is accessible for more people to start investing. They offer resources and advice for novice investors so that more people can grow their wealth. Find trading platforms you can use to start.

Cryptocurrency Apps - Blockchain, the primary technology for most cryptocurrencies, is a significant aspect of fintech, representing a reorganised way to conduct financial transactions outside traditional banking systems.

Examples of Fintech in Everyday life

Fintech has become a part of daily life for many consumers, even if they’re not aware of it. Here are a few common ways consumers interact with fintech:

• Mobile Banking - This convenience has transformed the way people interact with their banks, minimising the need for physical branches. These apps allow us to send, receive and manage our money instantly from our phones.
• Budgeting –. Budgeting apps have become a popular way to track your money and set saving goals you can stick to setting your priorities in place. These apps sync with your bank accounts and credit cards, offering a broad view of your financial health in one place. You can find free budgeting apps to help.
• Credit monitoring – Tools like Experian allow users to monitor their credit scores and reports so that they can keep on top of their records and know where they need to improve. With this you can find out the average score and where you fall within it.

Impact of Fintech on personal finances

Whether you’re using a simple payment app or diving into cryptocurrency trading, fintech brings the tools for managing your finances right to your device. Consumers now have access to tools that explain investment options, track spending habits, and create budgeting plans.

How will the U.S. Interest rates cut affect you?

The recent announcement from the US Federal Reserve as they made a significant cut to interest rates of 0.50% points marks the largest reduction in interest rates since 2020. Typically, the Federal Reserve adjusts rates by just 0.25 percentage points at a time, so this half-point cut is a substantial move designed to have a noticeable impact on the economy.

The cut brings the federal funds rate to a range between 4.5% and 4.75%, the lowest it has been in two years.

Their goal with this cut is to stimulate the US economy, encourage businesses to and consumers to borrow more money at lower rates. This should lead to more spending and in turn economic growth.

Why have interest rates been so high?

Interest rates in the US and globally have been at a record high over recent years due to a combination of pressures. COVID-19 caused economic disruptions and the supply chain issues that followed caused a surge in inflation in the US and globally. Consumer prices have been rising for goods like groceries, fuel and housing which has prompted the Federal Reserve to act.

They raised interest rates in several increments, hoping to cool down spending and borrowing, which in turn could help bring inflation under control. When borrowing costs increase, both consumers and businesses tend to spend less, slowing economic growth and reducing inflationary pressures. Over the past year, the federal funds rate had been raised to around 5%, one of the highest levels in decades.

This has had a substantial effect on the economy, the housing market has begun to cool due to higher mortgage rates and businesses pulling back on investments. Inflation has began to moderate as the Federal Reserve begins their balancing act to ensure inflation doesn’t reignite whilst avoiding a recession.

Why have they cut interest rates now?

While inflation has eased in recent months, there are concerns that the high interest rates were beginning to stifle growth too much. By making borrowing cheaper through this significant 0.50 percentage point cut, the Fed aims to boost both consumer spending and business investment. This recent cut should support economic growth in the US for 2025.

Lower interest rates can make it cheaper for businesses to expand, hire more employees, and invest in new technologies. For consumers, this can mean more affordable loans for things like homes, cars, and education. As borrowing costs decrease, individuals are more likely to take out loans, which in turn can drive up demand for goods and services, helping to boost the economy.

With reduced interest rates, consumers might feel more confident about making big-ticket purchases, such as homes or cars, knowing their monthly payments will be lower. In turn, this renewed confidence and spending can have a ripple effect, encouraging businesses to expand and invest more heavily, further stimulating the economy.

How the rate cuts affect the typical US family

This rate cut has several implications for US families, particularly when it comes to managing everyday expenses. One of the most immediate effects will be felt in mortgage rates. Families looking to buy a home or refinance their current mortgage may see lower interest rates, which can significantly reduce monthly payments. A 0.50% reduction in interest rates can translate to thousands of dollars saved over the life of a mortgage, making homeownership more affordable.

Those with credit card debt or personal loans may notice lower interest rates on their outstanding balances making it easier to manage repayments. Financing a new car or making large purchases will become more affordable as loans will be more accessible. This will allow families to have an increase in spending money which will be poured into the economy through purchases and days out.

How global markets are affected

Changes in U.S. monetary policy often ripple through global markets, and countries like the UK could be affected. For instance, the UK’s financial markets often move in tandem with the U.S., particularly in terms of bond yields and currency exchange rates. If U.S. interest rates decline, it can weaken the dollar, making other currencies like the British pound stronger in comparison. This can affect UK exports, making British goods more expensive for U.S. consumers.

US rates can also promote central banks such as, the Bank of England to consider their own policy adjustments.

The next announcement

the next major Federal Reserve decision is set for November 7th, just after the U.S. elections. The timing of this announcement has sparked debates about how political and economic factors will intersect. Many are questioning whether future rate cuts will continue or if the Fed will pause to reassess the state of inflation and economic growth post-election.

7 tips for using U.S. Credit Cards Abroad

Whether you're planning a relaxing beach vacation, an adventurous backpacking trip, or a business trip abroad, having the right credit card in your wallet can make a significant difference. From saving on foreign transaction fees to earning rewards on your spending, here’s what U.S. travellers should consider when choosing a credit card for international use.

You can find tips for UK travellers to find the right card to use abroad here too.

Prioritise Cards with No Foreign Transaction Fees

One of the most important features to look for in a credit card when traveling abroad is no foreign transaction fees. Many cards charge a fee—typically around 3%—on every purchase made outside the United States. While this may not sound like much, it can quickly add up over the course of your trip.

Fortunately, many credit cards geared towards travellers waive this fee, allowing you to make purchases without worrying about the extra cost.

Popular options with no foreign transaction fees include;

Chase Sapphire Preferred Card

1. • This card is popular among travellers due to its 2x points on travel and dining and its lack of foreign transaction fees, making it ideal for international use.

Capital One Venture Rewards Credit Card

1. • Known for its straightforward rewards system, this card offers 2x miles on every purchase and doesn’t charge foreign transaction fees, making it a great choice for frequent travellers.

American Express Gold Card

1. • This card offers 4x points on dining worldwide (including restaurants abroad) and 3x points on flights booked directly with airlines. It also has no foreign transaction fees.

Consider Cards with Travel Rewards

If you travel frequently, a credit card that offers travel rewards can be a great way to maximise your spending. These cards typically earn points or miles on every purchase, which can be redeemed for flights, hotels, and other travel-related expenses.

For example, the Chase Sapphire Preferred Card offers 2x points on travel and dining, while the American Express Gold Card provides 4x points on dining at restaurants, including those abroad, and 3x points on flights booked directly with airlines. These rewards can help offset the cost of future travel, making your trips even more affordable.

Look for Cards that are widely accepted

While Visa and Mastercard are widely accepted worldwide, some American Express and Discover cards may not be as universally accepted, particularly in smaller establishments or more remote destinations. Before traveling, check which networks are most commonly used in your destination. It's often a good idea to carry at least one Visa or Mastercard for broader acceptance, even if your primary card is an American Express or Discover card.

Check for Travel Insurance Benefits

Many premium travel credit cards offer valuable travel insurance benefits, which can provide peace of mind during your trip. These benefits might include trip cancellation or interruption insurance, baggage delay insurance, and travel accident insurance.

The Chase Sapphire Reserve offers comprehensive travel insurance, including trip cancellation, emergency evacuation, and travel accident insurance.

While these cards often come with higher annual fees, the protection they offer can be well worth the cost, especially for frequent travellers.

Look for Cards with Airport Lounge Access

If you’re someone who spends a lot of time in airports, having access to airport lounges can make your travel experience much more comfortable. Several travel credit cards provide complimentary access to lounges around the world as part of their benefits.

The Platinum Card from American Express, for example, offers access to the Global Lounge Collection, which includes more than 1,200 airport lounges in over 130 countries. Similarly, the Chase Sapphire Reserve offers Priority Pass Select membership, which grants access to over 1,300 lounges worldwide. Lounges often provide free food, beverages, Wi-Fi, and a quiet place to relax, making your time in transit more enjoyable.

Consider Cards with Chip-and-PIN Technology

While chip-and-signature cards are standard in the U.S., many countries abroad prefer or even require chip-and-PIN cards. Having a card with chip-and-PIN functionality can make it easier to use automated kiosks, such as those found at train stations, gas stations, and parking garages.

Most U.S.-issued credit cards now come with EMV chip technology, but not all offer the ability to set a PIN for transactions. Cards like the Barclaycard Arrival Plus World Elite Mastercard offer chip-and-PIN capability, which can be especially useful in countries where this is the preferred method of payment.

Check for Emergency Assistance Services

Having a card that offers emergency assistance can be invaluable if you encounter issues like lost luggage, medical emergencies, or legal troubles abroad. Many premium travel cards provide 24/7 concierge services, travel assistance, and emergency card replacement.

Use these 7 tips for using U.S. Credit Cards Abroad so you can cut down the costs on your next getaway!

What is the gender pay gap?

As stated by Oxfam, the gender pay gap is the difference in earnings between women and men. Women are paid less than men for many reasons—including gender discrimination in hiring and workplace policies, lost earnings potential when leaving the job market to take care of children, and insufficient worker protection laws.

In 1938 the Fair Labor Standards Act was signed into law, which purposefully excluded sectors in which Black workers were concentrated. The gender pay gap affects all women and those women of colour are among the most affected. Whilst the gender pay gap means that many women are being paid less than their male counterparts which affects their living conditions, savings and retirement it is also a sign of a broken value system.

The gender pay gap scale

Forbes released data early in 2024 to show the statistics of the current Gender Pay gap in the US.

Women earn 16% less on average than men, with women of colour being among the lowest paid workers in rural areas.

On average women earn 84 cents for every dollar a man makes. Black and Hispanic women are on average making just 56 cents for every dollar that rural white men are making.

The pay gap is apparent at all levels as a 20 year old woman starting out in full time work can stand to lose $407,706 over the course of a 40 year career compared to her male counterpart. Women lose this through the unequal pay from start through to losing out on promotions and pay raises, to the discrimination to childcare. Oxfam report that women are 5-8 times more likely than men to have their employment affected by caregiving responsibilities. Women are often punished for family responsibilities whilst men’s career continue to climb and allowed extra flexibility.

Education and the pay gap

Many will argue that the level of education is what affects the pay gap, but studies show that a woman with a bachelor’s degree will earn 74 cents for every dollar earned by their male counterparts with the same level of education.

Women would have to have at least one extra degree/qualification to reach similar pay levels of their male counterparts.

Retirement and the pay gap

The gender pay gap not only affects women during their careers, but has lasting impacts in retirement. On average, women contribute 30% less to their retirement accounts compared to mend, largely due to lower earnings. Women are also likely to receive 20% less in social security benefits, this can reflect their reduced wages as well as time spent over caregiving responsibilities.

Women face greater financial insecurity throughout life into retirement which often leads to more women facing poverty during their later years.

Pay gap by location

Forbes found which state has the widest and narrowest pay gap on average.

Widest pay gap = Wyoming with a -$18,877 difference in pay

• New Hampshire was next with a -$16,686 difference in pay
• Utah with a -$16,562 difference in pay

Narrowest pay gap = Vermont with women earning $3,872 less than men

Pay gap by industry

The gender pay gap varies by occupation and industry, with only a few professions showing equal or similar earning between genders. For instance, teaching assistants come out on top for pay parity with men and women both earning an average of $34,424 per year. Another example is educational guidance counsellors, where the pay gap in minimal, with women earning an average of only $104 less than their male counterparts.

Pay disparity can be much more pronounced in other industries. Real estate brokers show the largest pay gap, where men earn 60% more than women. Roles where earning can depend heavily on factors such as, networking, negotiation power where men may have structural advantages. Legal occupations also show a significant pay gap with men earning 59% more than women. This industry is known for it’s tough culture where women encounter career barriers.

What is a balance transfer Credit card?

Balance transfer credit cards are used to move your outstanding debt from one card onto a new one, typically with lower interest rates. They are useful if you need more time to pay off a big purchase and want to avoid interest rate payments. When used effectively they can be a great financial tool, but learning how to manage them correctly is vital or you may end up in a worse situation.

The Pros and Cons of a balance transfer credit card

The Pros

• Save money on interest

This is the biggest benefit of a balance transfer Credit card and they typically come with a low or 0% interest promotional period so you can transfer your amounts at a much lower rate.

• You can give yourself more time to pay off your debt

You can move from multiple accounts and multiple due dates to a single payment, often with a lower interest rate. This can give you time to save money so you can pay off your debt and technically still be on time and avoid big late payments.

• Pay off debt quickly

Paying less interest on credit card debt can allow you to pay down the principal more quickly so you can get out of debt sooner. When your amount is not building up you can be sure you can come up with the funds and not increase your debt, when used correctly.

The Cons

• Balance Transfer fee

There is typically a balance transfer fee of 3-5% of the amount transferred. There is usually a minimum amount for the fee and your account will give you the lowest % when you are a new holder for a set period of time before the transfer fee can increase.

• Potential for more debt

When using these cards, you will have to be disciplined and follow your financial plan. Otherwise, you could lead yourself into more debt by continuing to use your cards that were paid off in the transfer. Don’t be tempted and stay on track to avoid this.

• Low interest is usually temporary

Your account won’t give you a low interest rate forever and if you do not pay off the balance transfer by the end of the promotional period, your APR will shift to a higher rate. The promotional period on balance transfer cards typically ranges from 12 to 21 months.

Credit Limits

Your new balance transfer credit card may not offer you a high enough limit for your high-interest debt you want to move. The amount of credit offered is based on a variety of factors and could differ between issuers. You may need more than on transfer card or only transfer a portion of your debt.

When it comes to retirement planning for those living in the US, then understanding the account you should use to save is a great first step. These savings accounts a designed for your retirement funds and helps you to grow the amount so you can be sure you are supported when you need it.

What is an IRA?

An IRA is an individual retirement account with long-term, tax advantaged savings account. An Ira provides a great way to plan for retirement and enable your savings to grow. They are primarily designed for those who are self-employed and those who do not have a workplace retirement account (401(k) however, you are able to have both an IRA and a 401(k).

There are various types of IRA’s which all help you to plan for retirement and will help to maximise your saving funds. You won’t be able to withdraw your money before you are 59 ½ years old or you will be faced with a tax penalty of 10% of the amount withdrawn.

You are able to invest in a wide range of financial products including stocks, bonds, exchange-traded funds and more with certain IRA’s. The flexibility in investment choices is a huge advantage allowing you to diversify and maximise your savings.

Traditional IRA VS. Roth IRA

Traditional IRA

This is a tax deductible account so you can help you money go further and save for retirement. If you deposit $4000 into the account this means that your taxable income for the year will decrease by that amount.

When you withdraw money after you retire past the age of 59 ½ the amount is subject to a 10% early withdrawal penalty. There are certain exceptions including, first time home purchase, education expenses or medical emergencies.

The maximum amount you can contribute in the year 2024 is $7000 within one year and once you are 50 ½ you are eligible to contribute an additional $1000 as a catch up contribution. Your contributions are tax-deferred meaning you won’t pay tax on the money you deposit into the account

A traditional IRA is ideal for those expecting to be in a lower tax bracket during retirement, as the account allows them to delay taxes until they may be subject to lower rates. It is also a beneficial option for individuals who want to reduce their taxable income now, especially if they don’t have access to a employer plan such as a 401(k).

Roth IRA

This account allows you to invest your post-tax income to grow your funds for retirement. This means you can pay taxes up front and your investments grow tax-free.

The contribution limits for 2024 sits at $7000 for those under 50, those older can make contribution catch ups to the amount of $1000. This could total an annual amount of $8000 going into an account which can then grow.

If you have held the account for less than 5 years you will be able to withdraw money at any time tax free after the age of 59 ½ years old. This feature offer flexibility to those eligible for emergencies.

There are income limits such as, single filers with modified adjusted gross incomes (MAGI) over $153,000 and married coupled filing together with MAGI over $228,000 could face reduced or eliminated contribution eligibility.

This type of account it ideal for individuals who expect to be in a higher tax bracket during retirement, as this gives them the benefit of tax-free withdrawals when they need it.

Retirement Planning for US consumers

Retirement planning is crucial for securing financial independence in your later years. With increasing life expectancies and the rising cost of living, preparing for retirement has become more important than ever.

So, how can you start retirement planning?

Annual Percentage Yield (APY) represents the rate of return on your saving, including the effects of compounding interest. Compound interest makes APY a more accurate representation of what your savings will earn over the course of a year compared to when only simple interest is applied.

The higher the APY, the more beneficial as it allows your money to grow faster without any extra effort from you. Placing your money in a high yield savings account offers you an easy and low-risk way to accumulate more over time.

Top U.S. Banks Offering High-Yielding Savings Accounts

If you're looking to grow your savings, several U.S. banks offer attractive high-yield savings accounts with competitive APYs.

What is APR?

Annual percentage rate.

APR is the official rate to help you understand the cost of borrowing any amount. Your lender should always disclose the APR before you sign any agreement.

APR can be a good way to compare credit cards to see which would work out cheaper for you.

How does APR Work?

APR includes both the standard fees and interest you’ll have to pay on your borrowing over the course of the year. It’s usually added to the amount you owe on a monthly basis.

If the APR on your credit card is 17% this means you will owe 17% of the total amount owed to them in interest, on top of the total amount.

Often the interest rate isn’t the only cost of a credit card. To account for this, APR considers both a card’s interest rate and any other standard fees. This means that the APR percentage offers a more complete picture of how much borrowing will cost.

What is a good APR?

The APR you are offered will often be dependent on your credit score, the less of a risk you appear to be to lender’s then your APR could be lower too.

Credit card rates can vary, typically between 5% to 30% APR.

The lower the APR, usually the lower the cost of borrowing will be and this will make your payments cheaper if you are late or miss any amounts.

Types of APR

Fixed – If you have borrowed a fixed amount then such a loan or mortgage, having a fixed APR will make your payments more predictable as the APR won’t change.

Variable – The lender or bank can change the APR at any time and is often tied to the interest rates. This can make it harder to financially plan.

Representative APR – This is the advertised rate and means that a majority of applicants will get a APR of the same or lower than the representative.