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Did You Know?
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- For joint accounts, FDIC insurance covers up to $250,000 per co-owner, per FDIC-insured bank, meaning a joint account with two owners is insured for up to $500,000 in total.
This coverage assumes that each co-owner has equal rights to withdraw funds and that there are no other joint accounts at the same bank with the same ownership combination.
If the total balance exceeds this limit, opening additional accounts at other FDIC-insured banks can help ensure full protection of your funds.
- How much money people should keep in banks depends on their financial goals, spending habits, and risk tolerance, but some widely accepted guidelines can help. Financial
experts typically recommend maintaining one to two months’ worth of living expenses in a checking account, along with a small cushion to prevent overdrafts. For savings, especially
in a high-yield account, it’s smart to set aside three to six months’ worth of expenses as an emergency fund—providing both liquidity for unexpected costs and the benefit of
earning interest. For larger balances or long-term goals, consider diversifying into certificates of deposit (CDs), money market accounts, or investment vehicles. It’s also
important to remember that FDIC insurance protects up to $250,000 per depositor, per bank, so if your balances exceed that limit, spreading funds across multiple institutions
can ensure full coverage and peace of mind.
- As of July 2025, putting money in a Certificate of Deposit (CD) can be a smart move, especially for those seeking safe, fixed returns without market risk. Top CD rates
currently range from 4.25% to 4.75% APY, with short-term CDs—such as 6- or 12-month terms—offering some of the most competitive yields. While the national average for a 12-month CD
is around 1.62%, many online banks and credit unions are offering significantly higher rates. CDs are FDIC-insured, making them a low-risk option for savers who don’t need immediate
access to their funds and want to lock in a high rate before potential interest rate cuts.
- High-yield savings accounts (HYSAs) are a low-risk, accessible way to grow savings, offering significantly higher interest rates than traditional savings accounts—often
exceeding 4% APY in the current market. They are ideal for short-term savings or emergency funds because they provide better returns while maintaining liquidity, allowing
customers to access their money at any time without penalties, unlike certificates of deposit (CDs). In addition to higher interest rates and flexibility, HYSAs are typically
FDIC-insured up to $250,000, making them a secure and attractive option for individuals looking to earn steady returns without sacrificing access to their cash.
- Banks typically invest heavily in government bonds, which on average make up about 9% of their assets, especially in less financially developed countries. These bonds
are generally considered safe, but they carry interest rate risk—when interest rates rise, the market value of existing fixed-rate bonds falls. This inverse relationship
has become a source of concern for investors, particularly as many banks increased their bond holdings during periods of low interest rates, such as the pandemic.
As rates have risen sharply, the decline in bond values has led to unrealized losses on bank balance sheets, which can affect liquidity, capital ratios, and investor confidence.
These concerns have fueled fears that other banks may also be vulnerable to similar losses, especially if they are forced to sell these assets at a loss to meet liquidity needs.
- Under the Electronic Fund Transfer Act and Regulation E, banks are generally required to reimburse customers for unauthorized electronic transactions—such as those made
by hackers—if the customer reports the issue within 60 days of receiving their bank statement. However, if the customer initiates the transfer themselves, even if they were
tricked by a scammer, the transaction may not be considered unauthorized, and the bank is not legally obligated to refund the money. That said, in some cases where a customer
is fraudulently induced into granting access, the transaction may still qualify as unauthorized depending on the circumstances. If a bank refuses to issue a refund, customers
can file a complaint with the Consumer Financial Protection Bureau (CFPB), which will forward the issue to the bank; most banks respond within 15 days, although more complex
cases may take longer.
- Taxpayers generally do not face an IRS underpayment penalty if they owe less than $1,000 in tax after subtracting withholding and refundable credits. Additionally,
the IRS will not charge a penalty if the taxpayer has paid at least 90% of the total tax owed for the current year, or 100% of the tax owed for the previous year (110%
if their adjusted gross income was over $150,000). These safe harbor rules are designed to protect taxpayers who make a good-faith effort to pay their taxes throughout
the year from being penalized for underpayment.
- For the 2025 tax year, the IRS has adjusted federal income tax brackets for inflation. The tax rates are as follows: 10% for incomes up to $11,925 for single filers ($23,850 for married couples filing jointly);
12% for incomes over $11,925 ($23,850 for couples); 22% for incomes over $48,475 ($96,950 for couples); 24% for incomes over $103,350 ($206,700 for couples); 32% for incomes over $197,300 ($394,600 for couples);
35% for incomes over $250,525 ($501,050 for couples); and 37% for incomes over $626,350 ($751,600 for couples). These brackets apply to income earned in 2025 and reflect annual inflation adjustments.
- The IRS announced the federal income tax brackets for tax year 2024 rates and corresponding annual income amounts:
- 37% for incomes over $609,350 ($731,200 for married couples filing jointly)
- 35% for incomes over $243,725 ($487,450 for married couples filing jointly)
- 32% for incomes over $191,950 ($383,900 for married couples filing jointly)
- 24% for incomes over $100,525 ($201,050 for married couples filing jointly)
- 22% for incomes over $47,150 ($94,300 for married couples filing jointly)
- 12% for incomes over $11,600 ($23,200 for married couples filing jointly)
- 10% for incomes of $11,600 or less ($23,200 for married couples filing jointly)
- The IRS reminds people to remain alert to aggressive and threatening phone calls by criminals impersonating IRS agents.
These con artists claim to be IRS employees, but are not. They use fake names and bogus IRS identification badge numbers and try sound convincing when they call. They may know a lot
about their targets, and they usually alter the caller ID to make it look like the IRS is calling. The victims are told they owe money to the IRS and must pay it promptly through a preloaded debit card or wire transfer. If the victim refuses to cooperate,
they are often threatened with arrest. In many cases, the con artists becomes hostile and insulting. Alternately, victims may be told they have a refund due to try to trick them into sharing private information. If the phone isn’t answered, the phone scammers often leave an “urgent” call-back request.
The IRS doesn't do business like that.
- The IRS and its authorized private collection agencies never call you to demand immediate payment using a specific payment method (e.g.; a prepaid debit card, bank account, gift card, wire transfer), never ask for credit or debit card numbers over the phone, and
never threaten to immediately bring in local police or other law-enforcement groups to have the taxpayer arrested for not paying. The IRS does not use these methods for tax payments.
You should safeguard your personal information at all times, and don't let the convincing tone of scam calls to lead you to provide personal or credit card information, just hang up and avoid becoming a victim to these criminals.
- As of 2025, the average monthly Social Security retirement benefits in the U.S. vary depending on the age at which individuals begin claiming. For those who start at age 62, the average monthly benefit is approximately $1,341.61.
At age 66, which is close to full retirement age for many, the average benefit rises to around $1,975. For those who delay claiming until age 70, the average monthly benefit increases further to about $2,002.39. These figures reflect
the impact of delayed retirement credits and the Social Security Administration’s formula, which calculates benefits based on a worker’s 35 highest-earning years, adjusted for wage inflation. Importantly, delaying benefits beyond
age 70 does not increase the monthly payout any further.
- As of 2024 and 2025, the Social Security tax rate in the United States remains unchanged at 6.2% for employers and 6.2% for employees, totaling 12.4%. However, the Social Security wage base—the maximum amount of earnings subject
to this tax—has increased from $168,600 in 2024 to $176,100 in 2025. This means that in 2025, only the first $176,100 of an employee’s earnings are subject to the Social Security portion of FICA taxes, resulting in a maximum tax
of $10,918.20 per person. The 2023 tax rate for Social Security in the U.S. is 6.2% for the employer and 6.2% for the employee, or 12.4% total; the Social Security wage base is $147,000 for employers and employees.
- The current rate for Medicare in the U.S. is 1.45% for the employer and 1.45% for the employee, or 2.9% total; employers are also responsible for withholding the 0.9% Additional Medicare Tax on an individual's wages
paid in excess of $200,000 in a calendar year.
- Banks often invest heavily in bonds, rising interest rates have caused the price of such bonds to fail, feeding investor concerns that banks
might also be vulnerable.
- Bonds have an inverse relationship to interest rates,
when the cost of borrowing money rises (when interest rates rise), bond prices usually fall, and vice-versa.
- In 2023, Zelle processed approximately $806 billion in payments—nearly three times Venmo’s $275 billion—and by 2024, Zelle surpassed $1 trillion in volume with 3.6 billion transactions and 151 million enrolled users.
Despite Zelle’s claim that 99.95% of payments were completed without fraud reports, fraud losses were significant, with estimates reaching $725 million in 2023 and over $125 million in early 2024. In response to growing concerns,
the Consumer Financial Protection Bureau (CFPB) filed a lawsuit in December 2024 against Zelle and major banks like JPMorgan Chase, Bank of America, and Wells Fargo, alleging they failed to protect consumers from fraud and did not
comply with the Electronic Fund Transfer Act (EFTA) and Regulation E, which require full refunds for unauthorized transactions. The CFPB claims over $870 million in fraud losses since Zelle’s launch in 2017, while Zelle
maintains that it exceeds legal requirements and employs multilayered security to protect users.
- In 2021 people sent $490 billion through Zelle, compared with $230 billion through Venmo; and in 2020, nearly
18 million Americans were defrauded through scams involving Zelle, digital wallets and other instant payment applications, and
the 1,425 banks and credit unions that use Zelle are aware of the widespread fraud on Zelle. The Consumer Financial Protection Bureau
issued a policy required each participant institution to provide full
refunds for Zelle transactions determined to be unauthorized within the meaning of the Electronic Fund Transfer Act (EFTA) and Regulation E. Banks have to reimburse customers for losses on transfers that were “initiated by a person other than the consumer without
actual authority to initiate the transfer,” including those who obtain a victim’s device through fraud or robbery.
- Zelle was created and owned by seven banks, Bank of America, Capital One, JPMorgan Chase, PNC, Truist, U.S. Bank and Wells Fargo,
to enable instant digital money transfers, and the 1,425 banks and credit unions that use Zelle can customize the app and add their own security settings. The Zelle network is operated by Early Warning Services, a company based in Scottsdale, Arizona,
responsible for manages the system’s technical infrastructure.
- Credit cards can often be identified by their starting digits: those beginning with 4 are Visa cards (typically 13 or 16 digits), 5 indicates MasterCard (16 digits), 6 is for Discover (16 digits), and 3 is used
by American Express, Diners Club, or Carte Blanche (usually 15 digits). A Visa card starting with 4147 is indeed valid and commonly associated with major U.S. banks, including Bank of America (Alaska Airlines Visa Signature),
Citibank (American Airlines and Singapore Airlines co-branded cards), Chase (Sapphire and Amazon Visa Signature), US Bank, Wells Fargo, and occasionally PNC Bank, Capital One, or Merrill Lynch. These 4147-prefixed cards
are part of the Visa network and often carry Visa Signature benefits.
- You might have been seeing an increase in new scams involving phone calls, emails, or texts about suspicious your email account, credit card account, social security account, products, charities, medical advice and treatments, etc. Scammers often seek personal information, donations, money or gift cards to resolve urgent requests like a lawsuit,
account block or an arrest of a loved one. They may pretend to be a relative, police officer, IRS agent, FBI agent, government official, or even a hospital representative requesting payment for medical treatment. A phone call scam often threatens you and requests your personal information or bank account information. You should hang up immediately
because no bank or government official uses a phone call to request this type of information. A new text message or an email scam often alerts you that your account has been blocked, along with a link to log into your account. You should always check requests to ensure they are legitimate before taking any action. If a request is related to your
financial account, you can call your bank directly using the phone number on the back of your card for verification. You can get more information and sign up for scam alerts at FTC.gov.
- A text communications from a bank typically does not show a complete phone number as the sender of the text. Shorter codes of 5 or 6 digits are usually used by a bank in the U.S. and could be displayed with or without dashes (e.g.; 410-98, 227-898, 872-265, 248487). If you see a full phone number as the sender of the text, this may be a scam.
In addition, when your bank sends an email or a text with a link to log into your account directly from the text, the email address and link will always include (yourbank).com. If you think you may have been a victim of a scam or that your personal information has been compromised, you should call the number on the back of your card (e.g.; ATM, Debit, credit card)
so your bank can assist you in securing your account.
- Due to the coronavirus disease (COVID-19) pandemic, the Treasury Department and Internal Revenue Service extended the federal income tax filing due date from April 15, 2020, to July 15, 2020.
Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax.
- On March 13, 2020, the White House issued an emergency declaration in response to the ongoing Coronavirus Disease 2019 (COVID 19) pandemic (Emergency Declaration). The U.S. Treasury Department and Internal Revenue Service (IRS) issued guidance allowing all
individual and other non-corporate tax filers to defer up to $1 million of federal income tax (including self-employment tax) payments due on April 15, 2020, until July 15, 2020, without penalties or interest. The guidance also allows corporate taxpayers a similar deferment of up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020,
without penalties or interest. This guidance does not change the April 15, 2020 filing deadline.
- Capital One no longer offers residential mortgage loans, having exited the mortgage business in 2017–2018. It also does not provide personal loans directly, though it may refer customers to third-party lenders.
While Capital One does offer home equity loans, its offerings are limited compared to other banks. Additionally, Capital One does not provide investment or retirement account services like IRAs or brokerage accounts;
its focus remains on credit cards, checking and savings accounts, and auto loans. The bank has also been aggressively closing branches, with fewer than 500 locations remaining across eight states and D.C. as of 2025.
It closed nearly 50 branches in one quarter alone and continues to prioritize digital banking through its Capital One 360 platform3. This strategy reflects a broader industry trend toward online services, though it
has left some customers with reduced access to in-person banking.
- Capital One has faced significant backlash and legal action from long-time account holders who claimed they were misled into believing their money was in high-interest savings accounts, only to receive far lower
returns than expected. The controversy centers on the bank’s decision to introduce a new account, the 360 Performance Savings, offering much higher interest rates than the older 360 Savings account—without adequately
informing existing customers of the change. As a result, many continued earning as little as 0.30% APY while new customers earned up to 4.35% APY, leading to an estimated $2 billion in lost interest. In response to
these allegations, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit, and Capital One agreed to a $425 million settlement in June 2025. The incident has reinforced the perception that Capital One
prioritizes attracting new customers over supporting its existing ones.
- In July 2019, Capital One disclosed a massive data breach in which the personal information of approximately 100 million Americans and 6 million Canadians—mostly credit card customers and applicants from 2005
to early 2019—was unlawfully accessed and shared with third parties. The compromised data included names, addresses, dates of birth, credit scores, self-reported income, and in some cases, Social Security and bank
account numbers. The breach was traced to a former Amazon Web Services employee who exploited a vulnerability in Capital One’s cloud infrastructure. In August 2020, Capital One agreed to pay an $80 million fine to
settle federal charges brought by the Office of the Comptroller of the Currency (OCC), which found that the bank had failed to implement adequate risk management and security controls prior to migrating sensitive
data to the cloud. The incident remains one of the largest financial data breaches in U.S. history.
- In July 2012, Capital One was fined by the Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of the Currency (OCC) for deceptive marketing practices that misled millions of customers
into purchasing unnecessary add-on products such as payment protection and credit monitoring when activating their credit cards. Investigations revealed that Capital One’s call center vendors often pressured or
misinformed consumers—particularly those with low credit scores—by implying that these products were required or would improve their credit standing. To settle the case, Capital One agreed to pay a total of
$210 million, which included $150 million in refunds to approximately two million customers, a $25 million civil penalty to the CFPB, and an additional $35 million penalty to the OCC.
- When giving or receiving a gift card, it's important to understand how it works to avoid unexpected fees or loss of value. Under federal law, gift cards cannot expire for less than five years from the date of activation,
and inactivity or service fees cannot be charged unless the card has been inactive for at least 12 months—after which only one fee per month may be applied if clearly disclosed. If a gift card has an expiration date but
the funds are still available, the issuer must provide a free replacement card upon request. Additionally, some states offer even stronger protections, such as banning expiration dates or inactivity fees altogether.
If you believe a gift card issuer is not following these rules, you can file a complaint with the Consumer Financial Protection Bureau (CFPB).
- Under federal law, when you apply for credit or borrow money, lenders are not allowed to discriminate against you because of race, color, religion, national origin, sex, marital status, age, and/or receiving money from public assistance. Lenders are allowed to ask you for this type of information in
some situations, but they can’t discourage you from applying for a loan or a credit card. They can’t reject your application for any of the reasons on the list — or for exercising your rights under certain consumer protection laws. Also, lenders are not allowed to charge higher costs, like a higher interest rate or higher fees, for these reasons either.
If you believe you are the victim of credit discrimination, you can submit a complaint with the Consumer Financial Protection Bureau (CFPB).
- Credit history is a record of your borrowing behavior, including debts, repayment history, and public records like bankruptcies or legal judgments. It begins when you open your first credit account, such as
a credit card or loan. A longer credit history—especially one with low debt and consistent on-time payments—can positively impact your credit score. FICO Scores, used in over 90% of lending decisions, typically
range from 300 to 850, though some industry-specific models may range from 250 to 900. The length of credit history accounts for about 15% of your FICO score, factoring in the age of your oldest and newest accounts,
and the average age of all accounts. While you can build a decent score in a few years, achieving excellent credit generally requires seven years of open accounts and on-time payments. Most premium credit card
offers require a strong credit profile, which takes time and responsible financial behavior to develop.
- In response to the massive 2017 data breach that exposed the personal information of 147 million Americans, Equifax reached a $700 million settlement with the Federal Trade Commission (FTC),
Consumer Financial Protection Bureau (CFPB), and all 50 states. The settlement provided affected individuals with options for compensation, including up to $20,000 for out-of-pocket losses and time spent dealing with
the breach, or 10 years of free credit monitoring. Those who already had credit monitoring could opt for a $125 cash payment instead. However, to receive these benefits, individuals had to file a claim by January 22, 2020,
and those who wished to retain the right to sue Equifax independently had to opt out of the settlement by November 19, 2019. Failing to take action meant forfeiting both the compensation and the right to pursue
future legal claims against Equifax.
- Since its inception in 2011, the Consumer Financial Protection Bureau (CFPB) has handled over 1 million consumer complaints from all 50 U.S. states and the District of Columbia, with the top five categories
being debt collection (27%), mortgages (23%), credit reporting (17%), credit cards (10%), and bank accounts or services (10%). These complaints highlight the most frequent financial issues faced by consumers,
including aggressive debt collection tactics, mortgage servicing problems, inaccuracies in credit reports, and disputes involving credit card charges or banking services.
- While most student loan borrowers are young adults between the ages of 18 and 39, consumers aged 60 and older represent the fastest-growing segment of the student loan market. In 2015, older Americans owed
an estimated $66.7 billion in student loans, according to the Consumer Financial Protection Bureau (CFPB). This increase is driven not only by older individuals still repaying their own educational debt but
also by those who have taken out or co-signed loans to help finance the education of their children or grandchildren. As a result, many older borrowers face significant financial strain, especially as
they near or enter retirement with limited income and fewer opportunities to manage or repay this debt.
- Paying for college, you may choose a student loan with some options. To be eligible for any federal student loans or grants, you need to fill out
the FAFSA form. If your aid package doesn’t cover the full cost of college, you may need to talk to your school’s financial aid office
about scholarships or alternative loan options. If you need to borrow to pay for school, federal student loans almost always cost less than private student loans and have more protections when it’s time for repayment.
Take subsidized loans first, if you are eligible. The government pays the interest on subsidized loans while you are in school. You pay the interest on unsubsidized loans. Subsidized loans are awarded to students
based on financial need. Once you agree to a federal student loan, your interest rate remains the same. Interest rates on private student loans are set by the lender and depend on the lender’s evaluation of your
creditworthiness.
- A borrower who uses a five-year auto (car) loan to finance $20,000
at a 5 percent interest rate will, after three years, pay $2,190 in interest and have a remaining balance of $8,603. If the same loan is financed over six years at the same interest rate,
the borrower will pay about $2,342, which is $152 higher, in interest over the same three-year period and has a remaining balance of $10,747, which is $2,144 higher.
- A debt collector may file a lawsuit and win (often by default); as a result, they may be able to seize a car, home or other property after securing a court judgment. However in practice, state and federal law dramatically limit its ability to do so.
State exemption laws, which are designed to help protect income and assets from debt collectors, ensure that debtors do not become completely destitute
from the payment of debts and to preserve some small amount property for the basic necessities of living.
- In 2017, there were 2,043 billionaires worldwide with a combined net worth
of $7.67 trillion, marking a significant increase of 233 individuals from the previous year. By 2024, that number had surged to a record 2,781 billionaires with a total net worth of $14.2 trillion—nearly doubling in just seven years.
This dramatic growth reflects booming tech valuations, the rise of AI-driven industries, and strong post-pandemic economic rebounds. The top billionaires in 2024 include Elon Musk ($251 billion), Bernard Arnault ($233 billion), a
nd Jeff Bezos ($194 billion), underscoring the dominance of technology and luxury sectors in global wealth creation.
- As of 2025, the average credit card interest rate in the U.S. is around 23.99%, though it varies slightly depending on the source—Forbes Advisor reports 25.37%, while Federal Reserve data shows 21.91% for accounts that carry a balance.
Rates can range widely, from 0% on promotional or balance transfer offers to over 50% for subprime borrowers with poor credit, though most consumers typically see rates between 15% and 30%. This broad variability reflects differences
in creditworthiness, card types, and issuer policies.
- As of December 2015, there were approximately 318 million credit card accounts in the U.S., with an average monthly spending of $2,330 per account and an average credit line of $9,060 for new customers with excellent credit.
By late 2024, the number of credit card accounts had nearly doubled to 617 million, while average monthly spending per card decreased to $1,054, reflecting more cautious consumer behavior amid higher interest rates. In 2025, average
annual credit card spending per U.S. adult exceeded $10,700, or about $892 per month, and the average credit limit for superprime borrowers rose to $12,046, indicating increased lender confidence in high-credit consumers.
- Payday lenders typically charge fees ranging from $10 to $30 for every $100 borrowed, according to the Consumer Financial Protection Bureau. That means for a $500 loan, the fee could be up to $150—which aligns with your example.
If the loan is due on your next payday, usually in two weeks, the total repayment would be $650, often withdrawn automatically from the borrower's checking account. This structure results in an effective annual percentage rate (APR)
of nearly 400%, making payday loans one of the most expensive forms of borrowing.
- According to survey data, 60% of credit card holders with investable assets of $100,000 or more say that cash back is their favorite credit card perk, while 22% prefer frequent flier miles. This reflects a broader trend among
affluent consumers who value the simplicity and flexibility of cash rewards over travel-specific benefits.
- Your credit reports document your history of using credit, and a longer credit history generally helps your credit score. Credit scoring models like FICO and VantageScore consider the age of your oldest account, the average age
of all accounts, and how long specific accounts have been open. When you cancel an account—especially an older one—it can reduce the average age of your credit history, which may lower your credit score, particularly under scoring
models like VantageScore that may exclude closed accounts from age calculations. So, keeping older accounts open (even if unused) can be beneficial for maintaining a strong credit profile.
- Credit reports and credit scores can significantly impact many areas of your financial life, including your mortgage and car loan interest rates, credit card approvals, rental applications, and in some cases, even job opportunities.
Lenders and landlords use your credit history to assess your reliability and risk, while some employers—particularly in financial or security-sensitive roles—may review your credit report (with your permission) as part of the hiring
process. That’s why it’s essential to ensure that all the information on your credit reports is accurate and up to date, as errors could negatively affect your financial and professional opportunities.
- There are several situations where using a debit card is risky and best avoided. These include online shopping, where data breaches are common; purchasing big-ticket items, which are harder to dispute if something goes wrong;
and transactions requiring a deposit, such as hotel stays or car rentals, which can tie up your funds with large holds. It's also wise to avoid using debit cards at restaurants, where your card may leave your sight; with unfamiliar
or new businesses; for "buy now, take delivery later" purchases; and for recurring payments that can be difficult to cancel. Future travel bookings pose risks if plans change, and gas stations or hotels often place pre-authorization
holds. Lastly, avoid using your debit card at ATMs or checkout terminals that look suspicious, as they may be compromised by skimming devices. In all these cases, credit cards offer better fraud protection, dispute resolution,
and financial flexibility.
- Swiping your debit card at certain places can expose you to significant fraud risks, with four of the riskiest being ATMs, gas stations, websites, and restaurants. ATMs—especially standalone or outdoor machines—are frequent
targets for skimming devices that steal your card information and PIN. Gas stations are similarly vulnerable due to outdated pump technology and the ease with which criminals can install skimmers. Online shopping poses risks
because debit cards offer less fraud protection than credit cards, and data breaches can compromise your account. Restaurants are also risky since your card often leaves your sight, giving dishonest employees the opportunity
to skim or copy your information. In these situations, using a credit card or a secure digital payment method is typically a safer choice.
- One of the biggest retirement mistakes people make is leaving their savings in a regular bank account, where low interest rates fail to keep up with inflation. Over time, this erodes purchasing power—at an average inflation
rate of 3%, half the value of your money can disappear in about 24 years, meaning your estimate of a 50% loss every 22 years is quite accurate. While bank accounts offer safety and liquidity, they’re not suitable for long-term growth.
To protect retirement savings, money should be placed in safe, inflation-resistant investments such as Treasury Inflation-Protected Securities (TIPS), I Bonds, dividend-paying stocks, or diversified portfolios that include equities
and real estate. These options help preserve and grow wealth over time, ensuring your savings maintain their value throughout retirement.
- According to recent surveys, a troubling number of Americans are unprepared for retirement, with about 45% reporting no retirement savings at all and another 19% having less than $10,000 saved—meaning roughly 64% of Americans
are expected to retire with under $10,000 in savings. Additionally, between 21% and 36% of Americans don’t contribute anything to retirement savings, depending on the survey. These figures highlight a widespread lack of financial
preparedness and underscore the importance of early and consistent retirement planning.
- Americans working abroad are eligible for the Foreign Earned Income Exclusion (FEIE), which in 2025 allows them to exclude up to $130,000 of foreign earned income from U.S. federal income taxes. However, even if they earn
less than that amount or are paying higher taxes in the country where they work, they are still required to file a U.S. tax return with the IRS. The United States taxes its citizens on worldwide income, so expats must file
annually—typically using Form 2555 to claim the exclusion—and may also qualify for additional benefits like the Foreign Tax Credit or the Foreign Housing Exclusion to further reduce their tax liability.
- Your credit score is determined using a weighted formula that draws from the information in your credit report, with the most widely used models—FICO and the latest versions of VantageScore—scoring on a scale from 300 to 850.
Among these, FICO is the most commonly used by lenders, and its scoring breakdown includes: 35% based on your payment history, 30% on amounts owed (credit utilization), 15% on the length of your credit history, 10% on new
credit inquiries, and 10% on your mix of credit types. Together, these factors provide lenders with a snapshot of your financial behavior and help predict your likelihood of repaying borrowed money responsibly.
- The FICO credit score ranges from 300 to 850, with the average score in the U.S. reaching 715 as of 2025. Similarly, the VantageScore now also uses the same 300 to 850 scale, aligning with FICO's range. To qualify
for a conventional mortgage, most U.S. lenders typically require a minimum credit score between 620 and 640, depending on the specific loan program and lender criteria. Private mortgage insurance (PMI) is generally available
to borrowers with scores below 660, but the cost rises as credit scores fall; for instance, those with scores between 620 and 660 may pay between 0.35% and 0.40% of the loan amount annually in PMI premiums. These credit thresholds
play a crucial role in determining both loan eligibility and the overall cost of borrowing.
- As of June 2025, the average American credit card holder has about four credit cards, although individuals with higher incomes or excellent credit may carry more. Among college students, surveys show that approximately 50% to 60%
have at least one credit card, reflecting early engagement with credit but also underscoring the need for financial literacy. These trends highlight the importance of responsible credit use and education, particularly for younger
consumers who are just beginning to build their financial profiles.
- As of mid-2025, the U.S. federal government continues to rely heavily on borrowing to fund its operations. According to the Congressional Budget Office (CBO), the government borrowed $1.1 trillion in just the first seven months
of fiscal year 2025, and total federal spending is projected to reach $7.0 trillion for the year. This means that a significant portion—close to 40%—of government spending is financed through borrowing, reflecting a persistent
budget deficit and growing national debt. This trend underscores ongoing concerns about the sustainability of federal fiscal policy.
- As of June 2025, around 80% of U.S. consumers owned a debit card, slightly more than the 78% who owned a credit card, while 17% reported owning a prepaid card. These figures, drawn from the Federal Reserve’s 2025 Diary of
Consumer Payment Choice, highlight the widespread adoption of electronic payment methods, with debit cards maintaining a slight lead in ownership. The data also underscores the importance of understanding the distinct features,
protections, and risks associated with each type of card.
- As of 2025, approximately 214.9 million U.S. adults have a credit card account in their name, according to recent data. This marks a significant increase from previous years—up from 159 million in 2000, 173 million in 2006,
176.8 million in 2008, and 181 million in 2010—reflecting the continued growth and widespread adoption of credit cards across the country.
- It is illegal for debt collectors to make empty threats about filing lawsuits or seizing someone’s home if they have no legal basis or intent to follow through. Under the Fair Debt Collection Practices Act (FDCPA),
debt collectors are prohibited from using false, deceptive, or misleading tactics to collect a debt, including threatening legal action they don’t intend to take or claiming they can seize property without proper legal authority.
Such actions violate federal law, and consumers who experience them can report the collector to the Consumer Financial Protection Bureau (CFPB), the Federal Trade Commission (FTC), or their state attorney general’s office—and
may even have grounds to sue for damages.
- If you are contacted by someone who is trying to collect a debt that you do not owe, you should:
- Contact your local law enforcement agencies if you feel you are in immediate danger;
- Contact your bank(s) and credit card companies;
- Contact the three major credit bureaus and request an alert be put on your file;
- If you have received a legitimate loan and want to verify that you do not have any outstanding obligation, contact the loan company directly;
- File a complaint at www.IC3.gov.
- For older debts, the amount of time a collector can legally sue for payment—known as the statute of limitations—varies by state and by the type of debt, typically ranging from two to fifteen years. Once this period expires,
the debt becomes “time-barred,” meaning collectors can still attempt to collect it, but they can no longer take legal action to enforce payment. However, in some states, making a payment or even acknowledging the debt can
restart the clock on the statute of limitations, so it’s important to understand your rights before responding to old debt claims.
- As of early 2025, China and Japan continue to hold the world’s largest foreign exchange reserves, with China maintaining approximately $3.2 trillion and Japan around $1.2 trillion. The Eurozone follows with about
$1.1 trillion in reserves, while the United States holds roughly $250 billion—a relatively low amount due to the U.S. dollar’s role as the dominant global reserve currency. These reserves, which include foreign currencies,
gold, and Special Drawing Rights (SDRs), are used by countries to stabilize their currencies, support trade, and manage economic shocks. While China’s reserves have declined slightly from their 2014 peak, it remains
the global leader in total reserve assets.
- As of June 2025, 34% of major banks, 70% of community banks, and 78% of credit unions in the U.S. offer no-fee checking accounts to their customers, reflecting a trend toward more consumer-friendly banking options
among smaller institutions. At the same time, overdraft fees continue to be a significant source of revenue, accounting for approximately 77% of all checking account fees. This highlights the importance for consumers to
carefully review account terms and manage their balances to avoid costly penalties.
- From 2022 to 2024, several major U.S. corporations paid little to no federal income tax despite earning billions in profits, continuing a long-standing trend of aggressive tax avoidance. General Electric, for example,
earned nearly $7 billion in 2023 but received a $423 million federal tax refund, while Tesla reported $4.4 billion in U.S. profits over five years and paid no federal income tax, largely due to prior-year loss carryforwards.
T-Mobile earned $17.9 billion over five years and also paid zero net federal income tax, even as it paid its top five executives a combined $675 million. Other large firms, including Meta, General Motors, and Ford,
similarly paid effective tax rates far below the statutory 21%, often leveraging tax credits, offshore profit shifting, and stock-based compensation deductions to minimize their liabilities. It is noted that 30 U.S. companies paid
less than zero in federal income taxes in at least one year from 2008 to 2010. These companies, whose pretax U.S. profits totaled $160 billion over the three years, included: Pepco Holdings (Profit: $882M; Tax: –$508M; Rate: -57.6%),
General Electric (Profit: $10,460M; Tax: –$4,737; Rate: -45.3%), PG&E (Profit: $4,855M; Tax: –$1,027M; Rate: -21.2%), Computer Sciences (Profit: $1,666M; Tax: –$305M; Rate: -18.3%), DuPont (Profit: $2,124M; Tax: –$72M; Rate: -3.4%),
Verizon (Profit: $32,518M; Tax: –$951M; Rate: -2.9%), Boeing (Profit: $9,735M; Tax: –$178M; Rate: -1.8%),Wells Fargo (Profit: $49,370M; Tax: –$681M; Rate: -1.4%), and Honeywell (Profit: $4,903M; Tax: –$34M; Rate: -0.7%).
- From 2020 to 2023, Wall Street bonuses fluctuated significantly in response to market conditions. In 2020, financial firms paid out approximately $31.7 billion in bonuses—a 6.8% increase from the previous year—driven
by pandemic-induced market volatility and strong trading activity. Bonuses soared even higher in 2021, marking a record-breaking year with investment bankers and traders seeing increases of 20% to 35%. However, 2022 brought
a sharp downturn, with bonuses falling by 20% to 45% across sectors, and the average bonus dropping to $176,700 from $240,400 in 2021, making it the worst bonus year since the 2008 financial crisis. In 2023,
bonuses remained flat or declined slightly overall, though some areas like equity underwriting and wealth management experienced modest gains. U.S. financial firms paid about $20.8 billion in bonus for work done in 2010.
- As of 2025, the average Wall Street salary in New York City is estimated to be around $470,000, reflecting a strong rebound in profits and bonuses following a volatile few years. In contrast, the average private-sector
salary in New York City is approximately $109,601. This means that Wall Street professionals now earn more than four times the average private-sector worker’s salary in the city—slightly less than the fivefold gap seen in 2010,
when the average Wall Street salary was $361,330. The widening income disparity continues to underscore the outsized compensation structure of the financial sector relative to the broader labor market.
- According to data from the Securities Industry and Financial Markets Association (SIFMA), U.S. financial firms reported approximately $180 billion in net income in 2021, $165 billion in 2022, and $157.2 billion
in 2023—amounting to more than $500 billion in profits over three years. These robust earnings were fueled by strong performance in investment banking, trading, and wealth management, even as the industry navigated headwinds
like rising interest rates, regulatory shifts, and market volatility.
- A debit card may resemble a credit card in appearance, but it functions more like an electronic check. When used at a store, the card is swiped, tapped, or inserted into a payment terminal, which instantly communicates
with your financial institution to confirm that sufficient funds are available in your linked checking account. If approved, the transaction is processed and the amount is deducted almost immediately. This real-time
verification and direct withdrawal make debit cards a fast, convenient, and secure alternative to carrying cash or writing paper checks.
- In November 2024, the U.S. government ran a budget deficit of $366.8 billion, collecting $301.8 billion in revenue while spending $668.5 billion—a 17% increase over the deficit recorded in November 2023.
This sharp shortfall contributed to a projected $1.8 trillion deficit for fiscal year 2025, with total federal spending expected to reach $7 trillion against $5.16 trillion in revenue. A major driver of the
growing deficit is the rising cost of entitlement programs like Social Security and Medicare, along with soaring interest payments on the national debt, which alone are projected to exceed $1.2 trillion for the year.
In November 2010, the U.S. government ran a $150.39 billion budget deficit; its income was $148.96 billion, and spending was $299.35 billion. In November 2009 the deficit was $120.29 billion
- As of June 2025, the total U.S. public debt outstanding has surpassed $36.2 trillion, a dramatic increase from the $13 trillion recorded in June 2010. Meanwhile, the U.S. Treasury’s special account for public
donations to reduce the national debt—originally established in 1843—continues to receive modest contributions. In fiscal year 2022, Americans donated $180,310.32 to this fund. While more recent figures for 2025
have not yet been published, annual contributions in recent years have remained relatively small, typically ranging from $100,000 to $500,000, far below the scale needed to meaningfully impact the national debt.
- As of 2025, the United States dollar (USD) is used as the official or de facto currency in several U.S. territories and independent nations. U.S. territories that use the dollar include American Samoa, Guam, Northern Mariana Islands,
Puerto Rico, and the U.S. Virgin Islands. Sovereign nations that have adopted the dollar as legal tender include El Salvador, Ecuador, Panama, Timor-Leste, the Marshall Islands, Micronesia, Palau, and Zimbabwe (which uses
multiple currencies, including the USD). Additionally, the dollar is widely used in the British Virgin Islands, Turks and Caicos Islands, and unincorporated U.S. territories such as Johnston Island, Midway Islands, and Wake Island.
In all these regions, the U.S. dollar serves as a stable and widely accepted medium of exchange.
- On 1 January 1999, the European Monetary Union introduced the euro (€) as a common currency for financial institutions and electronic transactions among 11 member countries, marking its debut in non-cash form for accounting
and financial markets. Three years later, on 1 January 2002, euro banknotes and coins were officially introduced, and the euro became the sole currency for everyday transactions within the participating countries, replacing national
currencies like the French franc and Deutsche Mark in daily use.
- As of 2025, the euro (€) is the official currency of 20 out of the 27 European Union member countries, collectively known as the eurozone. These countries include Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France,
Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain. While your original list reflected the early adopters of the euro, several additional
countries—such as the Baltic states, Slovakia, Slovenia, and most recently Croatia—have since joined the eurozone, expanding its reach across much of the EU.
- As of 2025, seven European Union countries do not use the euro as their official currency: Denmark, Sweden, Poland, Hungary, the Czech Republic, Romania, and Bulgaria. Denmark has a formal opt-out from adopting the euro,
while Sweden has not yet met the necessary criteria and has chosen not to adopt it. The remaining countries—Poland, Hungary, the Czech Republic, Romania, and Bulgaria—are legally obligated to adopt the euro in the future
but have not yet done so, with Bulgaria expected to join next. Each continues to use its national currency, such as the Danish krone, Swedish krona, Polish zloty, and others.
- As of 2025, several non-EU countries and territories use the euro (€) either officially or de facto. Microstates such as Andorra, Monaco, San Marino, and Vatican City have formal agreements with the European Union
allowing them to use the euro and mint limited quantities of their own euro coins. Montenegro and Kosovo also use the euro as their de facto currency, though without formal agreements with the EU. Additionally,
the euro is the official currency in several EU overseas territories and
- Bank of America was originally founded as the Bank of Italy on October 17, 1904, in San Francisco by Amadeo Pietro Giannini to serve working-class immigrants, particularly Italian Americans, who were often underserved
by traditional banks. The bank gained prominence after the 1906 San Francisco earthquake, when Giannini famously rescued its funds and continued operations from a makeshift desk on a wharf. In 1928, the Bank of Italy merged
with Bank of America, Los Angeles, and in 1930, the combined institution officially adopted the name Bank of America. While the name change occurred in 1930, the bank’s origins trace back to its founding in 1904.
- As of 2025, the number of payment cards in circulation in the United States has grown substantially since 2009. There are now approximately 827 million credit cards in use, with Visa leading the market at around
198 million U.S. cardholders, followed by MasterCard with a significant share of the remainder. Debit card usage has also surged, with about 1.2 billion debit cards in circulation nationwide, largely dominated by Visa
and MasterCard networks. American Express has around 67 million active U.S. cardholders out of 118 million globally, while Discover serves over 51 million cardholders, the majority of whom are based in the U.S.
This growth reflects the continued shift toward digital payments and the widespread adoption of credit and debit cards for everyday transactions. As of the end of 2009, there were 270 million Visa credit cards,
82 million Visa debit cards, 203 million MasterCard credit cards, 125 million MasterCard debit cards, 48.9 million American Express credit cards, and 54.4 million Discover credit cards in circulation in the United States.
- The United States dollar (USD) is also commonly referred to as the American dollar or U.S. dollar, and its symbol is $. The federal government began issuing paper currency in 1861 during the Civil War to help
finance the Union’s war effort. These first notes were called Demand Notes, and they earned the nickname “greenbacks” due to their green ink. They were the first paper money issued by the U.S. Treasury for general
circulation and are considered the origin of modern U.S. currency.
- The evolution of U.S. currency spans centuries, beginning in 1690 when the Massachusetts Bay Colony issued the first paper money in the American colonies. During the Revolutionary War, the Continental Congress
introduced Continental Currency in 1775. The U.S. officially adopted the dollar as its currency unit in 1785, and the Coinage Act of 1792 established the U.S. Mint and a decimal-based coinage system. In 1861,
the federal government issued its first paper currency—Demand Notes, or “greenbacks”—to finance the Civil War. The National Banking Act of 1863 standardized banknotes through nationally chartered banks.
The creation of the Federal Reserve in 1913 brought a centralized system for issuing currency, and in 1929, U.S. banknotes were standardized in size and design. The U.S. fully abandoned the gold standard in 1971,
making the dollar a fiat currency. In the 21st century, the rise of digital payments, contactless cards, and mobile wallets has continued to transform how Americans use money.
- The United States Mint is responsible for producing the nation’s coins, while the Bureau of Engraving and Printing (BEP) has printed paper currency for the Federal Reserve since 1914. Originally, U.S. banknotes
were much larger in size, but in 1928, the government standardized them to the smaller, more familiar dimensions used today to reduce production costs and improve handling. As for weight, $1 million in $100 bills
weighs approximately 22 pounds, since each bill weighs about one gram and there are 10,000 bills in that amount.
- All U.S. paper currency, regardless of denomination, weighs exactly 1 gram per bill, meaning $1 million in $100 bills (10,000 bills) weighs about 10 kilograms, or approximately 22 pounds. In contrast,
$1 million in $1 bills would weigh about 1,000 kilograms, or over 2,200 pounds. Coin weights vary by denomination: a penny weighs 2.5 grams, a nickel 5 grams, a dime 2.268 grams, a quarter 5.67 grams,
a half dollar 11.34 grams, and a dollar coin 8.1 grams. For example, $1 in quarters weighs about 22.68 grams—the same as $1 in dimes or half dollars—while $100 in quarters weighs roughly 2.27 pounds.
This makes high-denomination paper currency far more efficient to transport than coins or lower-value bills.
- The $100,000 bill is the largest denomination of U.S. currency ever issued, printed in 1934 as a gold certificate featuring President Woodrow Wilson. It was never released to the public and was used exclusively
for transactions between the U.S. Treasury and Federal Reserve Banks as an internal accounting tool during the gold standard era. Although it technically carries the designation of legal tender, it is illegal
for private individuals to own one, and the few surviving examples are held by institutions such as the Smithsonian and the Federal Reserve for educational or display purposes only.
- The issuance of high-denomination U.S. currency—specifically the $500, $1,000, $5,000, and $10,000 bills—was officially discontinued on July 14, 1969 by the U.S. Treasury and the Federal Reserve System.
The primary reasons were declining use in everyday transactions and concerns about their potential use in illegal activities, such as money laundering. Although these notes were last printed in 1945,
they remained in circulation until their formal withdrawal in 1969. Today, they are still considered legal tender, but they are extremely rare and mostly held by collectors and museums.
- In 1946, the Flatbush National Bank of Brooklyn became the first bank to issue a credit card-like product through a program called “Charg-It,” developed by banker John C. Biggins. This early system
allowed local customers to make purchases at participating merchants, with the bank acting as an intermediary by reimbursing the merchants and then collecting payment from the customers. Although limited
to a small geographic area, the Charg-It program laid the foundation for the modern credit card system and marked a significant milestone in the history of consumer finance.
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