Author: AskMyFinance Editorial Team

Public Service Loan Forgiveness, or PSLF, is a federal program that forgives the remaining balance on your federal student loans after 10 years of qualifying payments while working for an eligible employer. For borrowers in public service careers, it can eliminate tens of thousands of dollars in debt.

The program has historically had a high rejection rate because borrowers made mistakes that disqualified their payments. This guide covers the current requirements, how to track your progress, and the most common mistakes to avoid in 2026.

What Is PSLF?

PSLF was created in 2007 to incentivize careers in government and non-profit work. After making 120 qualifying payments (10 years’ worth), borrowers who meet all requirements can have their remaining federal loan balance forgiven tax-free.

For someone who borrowed $80,000 to attend graduate school and earns $55,000 per year in a government job, the combination of income-driven repayment and PSLF can result in tens of thousands of dollars in forgiven debt at the 10-year mark.

PSLF Requirements

To qualify for forgiveness, you must meet all four requirements:

1. Loan Type

Only federal Direct Loans are eligible. This includes Direct Subsidized Loans, Direct Unsubsidized Loans, Direct PLUS Loans, and Direct Consolidation Loans.

FFEL loans (issued before 2010) and Perkins Loans do not qualify on their own, but you can consolidate them into a Direct Consolidation Loan. However, payments made before consolidation do not count toward the 120 required payments.

2. Repayment Plan

You must be on a qualifying repayment plan. Income-driven repayment plans all qualify, including:

• SAVE (formerly REPAYE)
• PAYE (Pay As You Earn)
• IBR (Income-Based Repayment)
• ICR (Income-Contingent Repayment)

The standard 10-year repayment plan also qualifies, but if you make all 120 payments on that plan you will have paid the loan off in full with nothing left to forgive. Income-driven plans are the ones that make PSLF valuable, since they keep payments low while the forgiveness clock runs.

3. Eligible Employment

You must work full-time for a qualifying employer. Qualifying employers include:

• U.S. federal, state, local, or tribal government agencies at any level
• Non-profit organizations with 501(c)(3) status
• Other non-profit organizations that provide certain qualifying public services

Private businesses, for-profit companies, and partisan political organizations do not qualify, even if the work you do serves the public. The employer’s designation matters, not the nature of your individual job duties.

4. 120 Qualifying Payments

You need 120 monthly payments. Each payment must be:

• Made on a qualifying loan
• Under a qualifying repayment plan
• For the full amount due
• Made on time (within 15 days of the due date)
• Made while you were employed full-time by a qualifying employer

Payments do not have to be consecutive. You can switch jobs, leave qualifying employment temporarily, and the payments you made while at qualifying employers still count.

How to Track Progress: The Employment Certification Form

Do not wait until you hit 120 payments to find out if you qualify. The single most important action you can take is to submit the Employment Certification Form (ECF), now processed through the PSLF Help Tool at studentaid.gov, annually or every time you change employers.

This confirms your employer qualifies and certifies your payment count. You will get a statement showing how many qualifying payments you have made. Discovering a disqualifying issue after 10 years is devastating. Catching it after year 1 gives you time to fix it.

How to Apply for PSLF Forgiveness

1. Confirm your loans are Direct Loans. If not, consolidate to a Direct Consolidation Loan.
2. Enroll in an income-driven repayment plan through studentaid.gov.
3. Make sure your employer qualifies and submit annual employment certifications.
4. After making your 120th qualifying payment, submit the PSLF Application through studentaid.gov.
5. Your loan servicer reviews and processes the forgiveness.

PSLF Waivers and Recent Changes

In 2022, the Department of Education implemented a Limited Waiver that allowed many previously ineligible payments to count. While the waiver period has ended, the underlying program was made permanently more flexible:

• Payments made in certain deferment or forbearance periods may now count.
• Late payments and partial payments under some income-driven plans may count.
• Consolidation rules were temporarily loosened to allow past FFEL payments to count.

If you had loans that were not previously qualifying, it is worth checking the PSLF Help Tool to see whether a consolidation or other action could revive previously ineligible payments.

Common PSLF Mistakes

Being on the wrong loan type. FFEL and Perkins loans do not qualify. Consolidate early if you have them, accepting that pre-consolidation payments will not count.

Being on the wrong repayment plan. The graduated or extended standard plans do not qualify. Get on an income-driven plan before your first qualifying payment.

Not certifying employment annually. Employers lose 501(c)(3) status. Government departments reorganize. Certifying every year catches these problems.

Going into the wrong forbearance. Not all forbearance periods count as qualifying payments. If you are struggling with payments, contact your servicer and ask specifically about income-driven plan options rather than forbearance.

Assuming private loan refinancing keeps PSLF eligibility. If you refinance federal loans into a private loan, those loans are no longer eligible for PSLF. This mistake permanently forfeits forgiveness rights.

Is PSLF Worth Pursuing?

PSLF is most valuable when you have a high loan balance relative to your income and plan to stay in public service for at least 10 years. A teacher with $60,000 in debt earning $45,000 per year stands to benefit enormously compared to someone with the same debt earning $120,000 in private sector work.

Use the PSLF Help Tool and the loan simulator at studentaid.gov to model your specific situation. For the right borrower, PSLF is one of the most powerful debt reduction tools available in the U.S.

A home equity loan lets you borrow a large lump sum using your home as collateral. You get the full amount upfront, repay it in fixed monthly payments, and the interest rate stays locked for the life of the loan. It is one of the lower-cost borrowing options available to homeowners.

This guide covers how home equity loans work in 2026, current rates, qualification requirements, and how to decide whether a home equity loan or a HELOC is the better fit for your situation.

How a Home Equity Loan Works

A home equity loan is a second mortgage. When you borrow, you receive a lump sum deposited into your bank account. You then make fixed monthly payments over a set repayment term, typically 5 to 30 years. The rate and payment are set at closing and do not change.

Your borrowing limit depends on how much equity you have built in your home. Most lenders allow a combined loan-to-value ratio of up to 85%. That means if your home is worth $350,000 and you owe $200,000 on your mortgage, your available equity is $97,500 ($350,000 x 0.85 = $297,500, minus $200,000 owed).

Home Equity Loan Rates in 2026

Home equity loans have fixed interest rates, which is one of their main advantages. In 2026, well-qualified borrowers can find rates ranging from approximately 7.5% to 9.5% depending on the lender, loan amount, credit score, and loan-to-value ratio.

These rates are significantly lower than personal loan rates (typically 10% to 20%) and far lower than credit card rates (typically 20%+). For large one-time borrowing needs, a home equity loan is often the cheapest fixed-rate option available to homeowners.

What Home Equity Loans Are Used For

Common uses that make financial sense:

• Major home renovations: Kitchen remodels, room additions, roof replacements, and similar projects that add lasting value to the property
• Debt consolidation: Paying off high-interest credit cards and personal loans at a much lower rate
• Large one-time expenses: Medical bills, college tuition, or other major costs where the fixed structure is helpful

Uses that are financially risky:

• Vacations, weddings, or lifestyle spending — you are pledging your home as collateral for depreciating or non-recoverable costs
• Investing in volatile assets like stocks or cryptocurrency — if the investment drops in value, you still owe the full loan balance

Home Equity Loan Requirements in 2026

To qualify, lenders typically require:

• Credit score: Minimum 620, but 680+ gets much better rates. Above 740 unlocks the best available rates.
• Equity: At least 15% to 20% equity remaining after the loan
• Debt-to-income ratio: Generally 43% or lower, though some lenders go up to 50% with strong compensating factors
• Stable employment and income: Lenders require documentation including W-2s, tax returns, and recent pay stubs
• Property appraisal: Required to confirm current market value; typically costs $300 to $500

Home Equity Loan vs. HELOC: Which Is Better?

Both products let you borrow against your home equity, but they work differently:

A home equity loan gives you one lump sum at a fixed rate. Your payment never changes. This works best when you know exactly how much you need and want the predictability of a fixed payment.

A HELOC gives you a revolving credit line with a variable rate. You borrow as needed during the draw period and only pay interest on what you use. This works best for ongoing expenses or projects where the total cost is uncertain.

In a high-rate environment, some borrowers prefer the certainty of a fixed home equity loan rate over the risk that a HELOC rate climbs further. In a falling-rate environment, a HELOC becomes more attractive because your rate decreases automatically.

Home Equity Loan vs. Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new one, letting you pull out equity as cash. The advantage is a single monthly payment at one rate. The problem in 2026 is that most homeowners locked in mortgage rates of 3% to 4% in 2020 and 2021. Refinancing today would mean exchanging a low rate on your full mortgage balance for a higher one just to access equity.

A home equity loan keeps your existing mortgage untouched. You just add a second loan. For homeowners with a low first-mortgage rate, a home equity loan is almost always better than a cash-out refinance right now.

Home Equity Loan Costs

In addition to interest, home equity loans come with closing costs. These typically run 2% to 5% of the loan amount and include:

• Appraisal fee ($300 to $500)
• Origination fee (0.5% to 1% of loan amount)
• Title search and title insurance
• Recording fees

Some lenders advertise “no closing cost” home equity loans, but these costs are built into a higher interest rate. Compare the APR, not just the stated rate, across multiple lenders to get a true apples-to-apples comparison.

How to Apply for a Home Equity Loan

1. Check your credit score and report. Pull your free credit reports from annualcreditreport.com and dispute any errors before applying.
2. Estimate your equity. Use recent home sales in your neighborhood to gauge current value, or use an online estimator as a starting point.
3. Get quotes from multiple lenders. Compare your current mortgage servicer, at least one credit union, and at least one online lender like Figure, Spring EQ, or Discover Home Loans.
4. Compare APRs and total loan costs, not just the interest rate.
5. Apply and complete the process. Submit your income documentation, authorize the appraisal, and review closing disclosures carefully before signing.

The entire process from application to funding typically takes 2 to 6 weeks.

Is a Home Equity Loan Right for You?

A home equity loan is a smart tool when you need a large, one-time sum at a low fixed rate and you are confident you can make the payments. It is particularly well-suited to home improvement projects that increase property value, since you are essentially borrowing against an asset that the improvement itself may help build.

It is not the right choice if your income is unstable, if you are close to retirement and want to minimize debt, or if you have the discipline to use a HELOC as a flexible revolving line without overextending.

Whatever you decide, shop at least three lenders before committing. The rate difference between lenders can be meaningful, and on a $50,000 loan over 10 years, even a 0.5% difference translates to hundreds of dollars in savings.

Passive income sounds like a dream: money that comes in while you sleep. The reality is more nuanced. Most passive income streams require either a meaningful upfront investment of time, money, or both. But once built, they can generate income with little ongoing effort.

Here are 12 realistic ways to build passive income in 2026, along with what each one actually requires to get started.

1. High-Yield Savings Accounts and CDs

This is the simplest passive income you can earn. Park your emergency fund and short-term savings in a high-yield savings account paying 4% to 5% APY, or lock in a higher rate with a certificate of deposit. On $20,000, a 5% APY earns $1,000 per year with zero effort beyond the initial deposit.

Required upfront: Capital. No skill or active management required.
Expected return: 4% to 5% APY in the current environment.

2. Dividend Stocks

Many established companies pay shareholders regular cash dividends. You buy shares once and receive quarterly income as long as you hold them. Dividend ETFs like SCHD or VYM pool hundreds of dividend-paying stocks into one fund for diversification.

Required upfront: Capital to invest. A brokerage account.
Expected return: 2% to 5% dividend yield, plus potential share price appreciation.

3. Index Fund and ETF Investing

The total return on a broad market index fund comes from both price appreciation and reinvested dividends. Over long periods, this compounds significantly. Investing $500 per month into a total market index fund is one of the most reliable paths to wealth-building passive income over time.

Required upfront: Regular contributions and patience.
Expected return: Historically 7% to 10% annualized over the long term.

4. Real Estate Investment Trusts (REITs)

REITs are companies that own income-producing real estate. You can buy shares of publicly traded REITs through a standard brokerage account, and they are required by law to pay out at least 90% of taxable income as dividends. This gives you real estate income exposure without owning property directly.

Required upfront: Capital. No landlord responsibilities.
Expected return: Dividend yields of 4% to 7% for many REITs, with varying volatility.

5. Rental Real Estate

Owning rental property can produce significant monthly cash flow once you cover your mortgage, taxes, insurance, and maintenance. The challenge is the upfront investment (down payment), ongoing management burden, and the risk of vacancies or difficult tenants.

Required upfront: Down payment (typically 20% to 25% for investment properties), credit, and property management effort.
Expected return: Varies widely by market. Target properties that cash-flow positive from day one.

6. Peer-to-Peer Lending and Private Credit

Platforms allow you to lend money to individuals or small businesses and earn interest. The risk is higher than savings accounts or bonds, and some platforms have faced difficulties in past economic downturns. Only allocate money you can afford to lose.

Required upfront: Capital. Research into platform reliability.
Expected return: 6% to 10%, but with meaningful default risk.

7. Digital Products

Ebooks, courses, templates, printables, and digital downloads can sell repeatedly after you create them once. Platforms like Gumroad, Etsy (for digital downloads), Udemy, and Teachable handle distribution. The catch is that most digital products require significant upfront effort and ongoing marketing to generate meaningful income.

Required upfront: Time to create the product and set up distribution. Some marketing effort ongoing.
Expected return: Highly variable. Top sellers earn thousands per month. Most earn a small side income.

8. Affiliate Marketing

Recommend products and services through a blog, YouTube channel, or social media, and earn a commission when your audience makes a purchase through your link. Building enough traffic or audience to generate meaningful affiliate income takes months to years of consistent content creation.

Required upfront: A platform (website, channel), consistent content creation for 6 to 24 months before meaningful income.
Expected return: Wide range. Established sites can earn thousands per month. New sites earn very little initially.

9. Licensing Your Photography, Music, or Art

If you create original photos, music, or design work, stock platforms let you license it repeatedly. Shutterstock, Getty Images, and Adobe Stock pay royalties each time someone licenses your content. Building a substantial library of useful content is the key to meaningful royalty income.

Required upfront: Creative work and time to build a catalog.
Expected return: Small per-download amounts that add up with a large catalog and high-demand content.

10. Print-on-Demand

Platforms like Merch by Amazon, Redbubble, and Printful let you upload designs to be printed on t-shirts, mugs, and other products. You earn a margin on each sale with no inventory or shipping to manage. The competition is intense and most designers earn modest amounts, but it is genuinely passive once designs are uploaded.

Required upfront: Design skills or outsourcing designs. Initial setup time.
Expected return: Low per unit, but truly passive.

11. Renting Out Assets You Own

A spare room on Airbnb, your car on Turo, storage space on Neighbor, or equipment you own can generate income between your personal uses. This is less passive than financial investments because you still need to coordinate rentals and manage your asset, but it monetizes things you already own.

Required upfront: An asset to rent. Time to set up listings and manage bookings.
Expected return: Varies by asset and location. Spare rooms in desirable cities can generate significant income.

12. Build an App or Software Tool

If you have development skills, building a small software-as-a-service product or mobile app can generate subscription or one-time purchase income. The upfront development investment is substantial, but once the product is stable, revenue can be relatively passive. Most successful SaaS products still require ongoing customer support and updates.

Required upfront: Technical skills or budget to hire developers. Significant time investment.
Expected return: High ceiling, high risk. Most products generate little income; some generate significant recurring revenue.

How to Choose the Right Passive Income Strategy

The right approach depends on what you have available to invest:

• You have capital but not time: High-yield savings, dividend ETFs, REITs, and index funds are your best tools.
• You have time but not capital: Digital products, affiliate marketing, and print-on-demand let you start with low upfront costs.
• You have both: Combine financial investing (for reliable returns) with one content or digital income stream (for higher potential upside).

The Honest Truth About Passive Income

The word “passive” is often misleading. Most passive income streams require significant active effort to set up, and many require ongoing maintenance to sustain. The exception is straightforward financial investing, which requires capital but is genuinely low-effort once set up.

Start with what you realistically have available. If you have savings, get them working harder in a high-yield account or invested in index funds. If you have a skill or interest in content creation, build toward an affiliate or digital product income stream. Small, consistent actions compound over time.

Exchange-traded funds, or ETFs, are one of the most straightforward ways to invest. One ETF purchase can give you exposure to hundreds or thousands of stocks or bonds, at a cost that was unimaginable a generation ago. If you are just getting started with investing, ETFs are almost certainly where you should begin.

This guide explains what ETFs are, how they work, how to pick good ones, and how to actually buy your first ETF in 2026.

What Is an ETF?

An ETF is a fund that holds a collection of assets, usually stocks or bonds, and trades on a stock exchange throughout the day just like a share of stock. When you buy one share of an ETF, you are buying a slice of every asset that fund holds.

For example, a single share of a total U.S. stock market ETF might give you proportional ownership in more than 3,500 American companies. You get instant diversification without having to buy each company’s stock individually.

ETFs vs. Mutual Funds vs. Index Funds

These three terms are related but distinct:

• Mutual funds pool investor money to buy assets. They price once per day after the market closes. Some are actively managed by portfolio managers; others track an index.
• Index funds are a strategy: they track a benchmark index like the S&P 500 instead of trying to beat it. Index funds can be either mutual funds or ETFs.
• ETFs are a structure: they trade on exchanges throughout the day like stocks. Most ETFs are index funds, but some ETFs are actively managed.

For most beginners, the practical difference between a low-cost index mutual fund and a low-cost index ETF is small. Both work well. ETFs are slightly easier to buy in a standard brokerage account with no minimum investment requirement beyond the price of one share.

Types of ETFs

Broad market ETFs: Track the total U.S. stock market or a major index like the S&P 500. Examples: VTI (Vanguard Total Stock Market), VOO (Vanguard S&P 500), ITOT (iShares Core S&P Total U.S. Stock Market).

International ETFs: Hold stocks from countries outside the U.S. Examples: VXUS (Vanguard Total International Stock), VEA (Vanguard FTSE Developed Markets).

Bond ETFs: Hold bonds instead of stocks. Provide income and reduce portfolio volatility. Examples: BND (Vanguard Total Bond Market), AGG (iShares Core U.S. Aggregate Bond).

Sector ETFs: Track a specific industry like technology, healthcare, or energy. Higher concentration risk but useful for targeted bets.

Dividend ETFs: Focus on companies with strong dividend payment histories. Examples: VYM (Vanguard High Dividend Yield), SCHD (Schwab U.S. Dividend Equity).

Thematic ETFs: Target specific trends like clean energy, artificial intelligence, or genomics. These are speculative and carry higher risk.

What to Look for in an ETF

Expense ratio: This is the annual fee charged to run the fund, expressed as a percentage of your investment. Lower is better. The best index ETFs charge 0.03% to 0.10% per year. Avoid ETFs charging more than 0.50% unless there is a compelling reason.

Assets under management (AUM): Funds with higher AUM tend to have tighter bid-ask spreads and are more liquid. Look for ETFs with at least $1 billion in assets.

Tracking error: How closely does the ETF actually track its stated index? Most major index ETFs track their benchmarks very closely. Check the fund’s index performance vs. actual returns over 1, 3, and 5 years.

Underlying index: Know what index the ETF tracks and what that index holds. Two ETFs that both claim to track “U.S. stocks” can hold very different portfolios.

A Simple ETF Portfolio for Beginners

You do not need dozens of ETFs. A three-fund portfolio covers the essentials:

1. U.S. total stock market ETF (e.g., VTI or ITOT) — core domestic exposure
2. International stock ETF (e.g., VXUS or IXUS) — global diversification
3. Bond ETF (e.g., BND or AGG) — stability and income

How you split between these depends on your age, risk tolerance, and timeline. A common rule of thumb: subtract your age from 110 and hold that percentage in stocks. At 30, that means roughly 80% stocks (split between U.S. and international) and 20% bonds. Adjust based on your comfort with volatility.

How to Buy an ETF

Step 1: Open a brokerage account. The major brokers — Fidelity, Charles Schwab, and Vanguard — all offer commission-free ETF trading. If you are investing for retirement, open an IRA (Roth or Traditional) instead of a taxable brokerage account to get tax advantages.

Step 2: Fund your account. Link your bank account and transfer money. Most brokers have no minimum to open an account.

Step 3: Search for the ETF. Use the ticker symbol (e.g., VTI) to find the fund. Review the fund summary, expense ratio, and top holdings before buying.

Step 4: Place a market or limit order. A market order buys at the current price. A limit order lets you set a maximum price you are willing to pay. For long-term buy-and-hold investors, market orders are usually fine.

Step 5: Set up automatic contributions. Most brokers let you automate recurring purchases. Automating takes emotion out of investing and ensures you consistently add to your portfolio.

ETF Tax Considerations

ETFs held in a taxable account generate capital gains taxes when you sell at a profit, and dividends are taxable in the year received. Holding ETFs in a Roth IRA or Traditional IRA shields you from these taxes (or defers them). For most investors, maxing tax-advantaged accounts before using a taxable brokerage account is the right order of operations.

Common ETF Mistakes to Avoid

• Chasing recent performance. Last year’s top ETF is not necessarily next year’s winner. Stick to broad, low-cost index funds.
• Over-diversifying into too many ETFs. Three to five ETFs is enough for most investors. Adding more often just creates overlap without real diversification.
• Panic-selling during downturns. ETF investing works when you stay invested through market cycles. Selling in a downturn locks in losses.
• Ignoring fees. An expense ratio of 1% vs. 0.05% seems small annually but compounds into a massive gap over 30 years.

The Bottom Line

ETFs are one of the most powerful tools available to everyday investors. They offer broad diversification, very low costs, and simplicity. If you are not yet investing in ETFs, opening an account and buying a total market ETF today is one of the highest-return actions you can take for your long-term financial health. Start simple, keep costs low, and stay consistent.

A checking account is the financial hub of your daily life. It is where your paycheck lands, where your bills get paid, and where your debit card draws from. But not all checking accounts are equal. The best ones charge no monthly fees, offer interest on your balance, and give you broad ATM access without surcharges.

Here are the best checking accounts in 2026, what makes each one stand out, and what to look for when you compare your options.

What Makes a Great Checking Account in 2026?

Before getting into specific accounts, here is what actually matters when you are comparing options:

• No monthly maintenance fees, or easy-to-meet fee waiver conditions
• ATM access: Either a large in-network ATM network or reimbursement of out-of-network fees
• Interest on your balance: More accounts now pay competitive rates
• Overdraft policy: No fee or small fee options, not $35 hits per transaction
• Mobile deposit, Zelle, and solid app experience
• FDIC insurance on all balances up to $250,000

Best Checking Accounts of 2026

SoFi Checking and Savings

SoFi’s hybrid checking and savings account pays competitive APY on your savings balance and a lower rate on checking, with no monthly fees and no minimum balance. You get early direct deposit (up to 2 days early), no overdraft fees, and access to 55,000+ Allpoint ATMs fee-free. Qualifying direct deposits unlock a better savings rate and a small deposit bonus for new members.

Best for: People who want a single account for both checking and high-yield savings in one place.

Ally Bank Spending Account

Ally’s checking account pays interest, has no monthly fees, and reimburses up to $10 in out-of-network ATM fees per statement cycle. Ally’s app is consistently rated among the best in online banking. The 24/7 customer service is a genuine differentiator. No physical branches, but most customers find they never need them.

Best for: People comfortable with online-only banking who want solid interest and excellent service.

Discover Cashback Debit

Discover pays 1% cash back on up to $3,000 in debit card purchases per month, which adds up to $30/month or $360/year for heavy debit users. No monthly fee, no minimum balance, and access to over 60,000 fee-free ATMs. No interest on the checking balance, but the cash back makes up for it for regular debit spenders.

Best for: People who use their debit card frequently for everyday purchases.

Chime Checking Account

Chime is a fintech app (not a bank itself) with no monthly fees, no overdraft fees on small amounts through its SpotMe feature, and early direct deposit. The fee-free overdraft of up to $200 for qualifying members is a standout perk. No interest earned, but the no-fee, no-stress structure appeals to people living paycheck to paycheck.

Best for: Building financial stability without fee surprises.

Axos Bank Rewards Checking

Axos Rewards Checking pays a competitive APY when you meet certain monthly requirements like direct deposit and a minimum number of debit card purchases. It also reimburses domestic ATM fees with no cap. If you can meet the activity requirements, this is one of the highest-yielding checking accounts available.

Best for: Active account users who want to earn meaningful interest on their checking balance.

Capital One 360 Checking

Capital One 360 Checking pays a small amount of interest, has no fees, no minimums, and no overdraft fees. Capital One has both a strong app and physical branches in some cities, making it a good middle ground between pure online banking and traditional brick-and-mortar. Access to 70,000+ fee-free ATMs through Allpoint and MoneyPass networks.

Best for: People who want no-fee banking with the option of in-person service.

Traditional Bank Checking Accounts

Major banks like Chase, Bank of America, and Wells Fargo offer checking accounts that are widely available and have extensive branch networks. The tradeoff is monthly fees (typically $12 to $25) that require direct deposit or a minimum balance to waive, and little to no interest paid.

If you value branch access and in-person service, Chase Total Checking is one of the most accessible options, with frequent $200 to $300 new account bonuses for setting up direct deposit. Just make sure you meet the fee waiver requirements.

How to Choose the Right Checking Account

There is no single best checking account for everyone. The right one depends on your situation:

• You use ATMs frequently: Prioritize a large fee-free ATM network or generous ATM reimbursement.
• You carry a high balance: Look for accounts that pay interest, like Axos Rewards or Ally.
• You use your debit card constantly: Discover Cashback Debit pays you back for that habit.
• You sometimes overdraft: Chime or a bank with no-fee overdraft coverage is worth prioritizing.
• You want branch access: Capital One or a major bank with a local branch network makes sense.

Checking Account Fees to Watch Out For

Even “free” checking accounts can have hidden costs:

• Monthly maintenance fees: $12 to $25/month at traditional banks if you do not meet waiver conditions
• Overdraft fees: Still $25 to $35 per transaction at many banks
• Out-of-network ATM fees: $3 to $5 per use, plus the ATM owner’s surcharge
• Paper statement fees: $1 to $3/month at some institutions
• Minimum balance fees: Charged if your balance drops below a required threshold

Read the fee schedule before opening any account. The fine print matters.

Checking vs. Savings Account

A checking account is designed for daily transactions. A high-yield savings account is designed for money you are setting aside. Keep them separate, and ideally at the same institution so you can transfer instantly between them. Some hybrid accounts like SoFi’s combine both functions under one login.

The Bottom Line

The best checking account in 2026 is one that charges you nothing and gives you everything you need: easy access to your money, solid app and customer service, and ideally some interest or cash back on your spending. Online and fintech accounts generally offer better terms than traditional bank checking accounts. If you have not reviewed your checking account in the past two years, there is a good chance a better option is available to you.

A home equity line of credit, or HELOC, is one of the most flexible ways to borrow money if you own a home. It works like a credit card backed by your home equity. You get a credit limit, draw from it as needed, and only pay interest on what you use.

This guide explains how HELOCs work in 2026, what current rates look like, the risks you need to understand, and how a HELOC compares to other ways of tapping home equity.

How a HELOC Works

When you take out a HELOC, your lender approves a credit limit based on how much equity you have in your home. Most lenders will let you borrow up to 85% of your home’s appraised value, minus what you still owe on your mortgage.

For example: if your home is worth $400,000 and you owe $250,000, you have $150,000 in equity. A lender allowing 85% combined loan-to-value would let you borrow up to $90,000 through a HELOC ($400,000 x 0.85 = $340,000, minus $250,000 owed = $90,000 available).

A HELOC has two phases:

• Draw period: Usually 5 to 10 years. You can borrow, repay, and borrow again, much like a revolving credit card. Most HELOCs require interest-only minimum payments during this phase.
• Repayment period: Usually 10 to 20 years. You can no longer draw funds. Your monthly payment now covers both principal and interest, which can cause payment shock if you borrowed heavily during the draw period.

HELOC Interest Rates in 2026

HELOC rates are variable. They are tied to the prime rate, which moves with the federal funds rate. When rates rise, your HELOC payment goes up. When rates fall, it goes down.

As of mid-2026, HELOC rates at major banks range from around 8% to 10% for well-qualified borrowers. Credit unions and online lenders sometimes offer lower introductory rates. Always compare the fully indexed rate, not just the teaser.

Some lenders offer a fixed-rate option on a portion of your HELOC balance. This can make sense if you want predictability on a large draw you plan to carry for years.

What Can You Use a HELOC For?

Lenders do not restrict what you use HELOC funds for, but the smartest uses are those that maintain or increase your home’s value or reduce higher-cost debt:

• Home renovations and additions
• Consolidating high-interest credit card debt
• Covering large planned expenses like a child’s college tuition
• Emergency liquidity buffer (draw only if needed)

Using a HELOC to fund vacations, cars, or daily expenses is risky. You are putting your home on the line for depreciating spending.

HELOC Requirements in 2026

To qualify for a HELOC, most lenders require:

• Credit score: 620 minimum, but 700+ gets significantly better rates
• Debt-to-income ratio: Generally 43% or lower
• Home equity: At least 15% to 20% equity remaining after the HELOC
• Stable income: Lenders verify income, employment, and assets

Your home will be appraised during the application process. The lender orders this appraisal, and you typically pay a fee of $300 to $500.

HELOC vs. Home Equity Loan

A HELOC and a home equity loan both let you borrow against your home equity. The key difference is structure:

• A HELOC is a revolving credit line with a variable rate. Flexible, but payment amounts change.
• A home equity loan is a lump sum with a fixed rate. Predictable payments, but you borrow everything upfront.

A HELOC is usually better when you do not know exactly how much you need or when you will need it, such as for ongoing renovations. A home equity loan is better for a one-time large expense where you want a locked rate and predictable payments.

HELOC vs. Cash-Out Refinance

A cash-out refinance replaces your existing mortgage with a new, larger one and gives you the difference in cash. In 2026, with mortgage rates still elevated for many homeowners who locked in low rates in 2020 and 2021, a cash-out refinance would mean giving up a low first mortgage rate. A HELOC avoids touching your first mortgage, which makes it a better choice for most homeowners in this rate environment.

HELOC Risks to Understand

Variable rate risk: Your minimum payment can increase significantly if rates rise during your draw period. Budget for higher payments before you borrow.

Foreclosure risk: Your home is the collateral. If you default, the lender can foreclose. This is not a low-stakes borrowing option.

Payment shock at repayment: Interest-only minimums during the draw period are low. Once repayment starts, monthly payments can more than double. Plan for this transition.

Lender freeze risk: Lenders can freeze or reduce your HELOC if your home value drops significantly or your financial situation changes. This happened widely during the 2008 housing crisis. A frozen HELOC can strand projects in progress.

How to Apply for a HELOC

1. Check your credit score and report. Fix any errors first.
2. Estimate your equity using current home values in your area.
3. Get quotes from at least three lenders: your current mortgage servicer, a credit union, and an online lender.
4. Compare annual percentage rates (APR), fees, minimum draws, and repayment terms.
5. Submit your application with income verification, tax returns, and property documents.
6. Complete the appraisal and closing process, which usually takes 2 to 6 weeks.

Is a HELOC Right for You?

A HELOC makes sense if you have substantial equity, a strong credit score, and a specific use case that benefits from flexible, revolving access to funds. It is a powerful tool when used for value-adding purposes like home improvements.

It is not a good fit if you are in a financially unstable situation, if you cannot handle variable rate exposure, or if you plan to use it for non-essential spending. The stakes are high because you are borrowing against the roof over your head.

Compare multiple lenders before committing, and make sure you understand the full repayment terms before you sign.

A Health Savings Account (HSA) is a tax-advantaged account that lets you save money for medical expenses. It is available only to people enrolled in a High-Deductible Health Plan (HDHP). The HSA offers a unique triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free.

HSA Contribution Limits for 2026

For 2026, the IRS has set HSA contribution limits at:

• Self-only coverage: $4,300
• Family coverage: $8,550
• Catch-up contribution (age 55+): Additional $1,000

Contributions can be made by you, your employer, or both — but the total cannot exceed the annual limit. Employer contributions count toward your limit.

Who Qualifies for an HSA?

To contribute to an HSA, you must:

• Be enrolled in a High-Deductible Health Plan (HDHP)
• Not be covered by any other health insurance that is not an HDHP (with limited exceptions like accident-only or dental/vision coverage)
• Not be enrolled in Medicare
• Not be claimed as a dependent on someone else’s tax return

In 2026, an HDHP is defined as a plan with a minimum deductible of $1,650 (self-only) or $3,300 (family) and maximum out-of-pocket expenses of $8,300 (self-only) or $16,600 (family).

The Triple Tax Advantage Explained

The HSA is the only account in the U.S. tax code with a triple tax benefit:

1. Contributions are pre-tax (or tax-deductible). If you contribute through payroll, contributions come out before income tax, FICA taxes, and state taxes. If you contribute directly to an HSA (not through payroll), you get an above-the-line deduction on your federal return — no need to itemize.
2. Investment growth is tax-free. HSA funds can be invested in mutual funds, ETFs, and other options (depending on your HSA provider). The growth accumulates tax-free.
3. Withdrawals for qualified medical expenses are tax-free. Use the money for eligible healthcare costs at any time — now or decades from now — without paying a cent in taxes.

What Counts as a Qualified Medical Expense?

The IRS list of qualified HSA expenses is broad. It includes:

• Deductibles, copayments, and coinsurance
• Prescription medications
• Dental care (fillings, crowns, braces)
• Vision care (exams, glasses, contacts)
• Mental health services
• Chiropractic care
• Medical equipment (crutches, blood pressure monitors)
• Menstrual care products
• Over-the-counter medications (expanded after 2020)

Premiums for health insurance generally do not qualify (with exceptions for COBRA continuation coverage, coverage while receiving unemployment benefits, and Medicare premiums after age 65).

HSA vs. FSA: Key Differences

Flexible Spending Accounts (FSAs) are often confused with HSAs. The key differences:

• FSA: Use-it-or-lose-it (funds generally expire at year end with limited carryover). Available with any health plan. Employer owns the account.
• HSA: Funds roll over indefinitely. Requires an HDHP. You own the account and take it with you if you change jobs. Can invest funds for long-term growth.

For most people with a choice, the HSA is more valuable due to the rollover feature and investment option.

Using an HSA as a Retirement Account

Here is a strategy many financial advisors recommend: if you can afford to pay medical expenses out of pocket in the short term, contribute the maximum to your HSA every year and invest the funds in low-cost index funds. Save your receipts for all out-of-pocket medical expenses going back to when you opened the HSA.

In retirement, you can withdraw HSA funds to reimburse yourself for those old qualified medical expenses — with no time limit on when you submit. This effectively turns the HSA into another tax-free source of retirement income.

After age 65, HSA funds can also be withdrawn for any non-medical purpose and are simply taxed as ordinary income (like a traditional IRA). This makes the HSA a true retirement account with the added benefit of tax-free medical withdrawals.

How to Open an HSA

If your employer offers an HSA alongside an HDHP, you can open one through your employer’s benefits portal. You can also open an HSA directly with providers like Fidelity, Lively, HealthEquity, or HSA Bank if you prefer different investment options or lower fees.

Compare HSA providers on monthly fees, investment minimums, and available investment funds. Some providers charge $2-4 per month in maintenance fees, which erodes your balance over time. Fidelity’s HSA has no fees and no investment minimum — it is widely considered the top option for people who want to invest their HSA funds.

Bottom Line

An HSA is one of the most tax-efficient accounts available. The triple tax advantage — deductible contributions, tax-free growth, and tax-free qualified withdrawals — beats every other savings account type. If you have access to an HDHP and can handle a higher deductible, maxing your HSA each year and investing the funds is a powerful financial planning move.

Gas is one of the most predictable recurring expenses for most households. The right gas credit card turns every fill-up into cash back or points — effectively reducing your fuel cost by 3-5% on every gallon. Here are the top picks for 2026.

Best Gas Credit Cards for 2026

Citi Custom Cash Card — Best Overall Gas Card

The Citi Custom Cash earns 5% cash back on your top eligible spending category each billing cycle, up to $500 spent. Eligible categories include gas stations. If gas is your highest spending category in a given month, you automatically earn 5% back without any activation required.

There is no annual fee. For drivers who fill up regularly and spend $200-$500 per month on gas, this card delivers excellent returns. The automatic category detection means you never have to remember to activate a rotating category.

Blue Cash Preferred from American Express — Best for Gas and Groceries Combined

The Blue Cash Preferred earns 3% cash back at U.S. gas stations and transit purchases, plus 6% at U.S. supermarkets (on the first $6,000 per year), and 1% on everything else. If you spend heavily on both gas and groceries, the combined earning rate is outstanding.

The annual fee is $95 (waived the first year). For most households with significant grocery and gas spending, the fee pays for itself quickly through the higher rewards rates.

Chase Freedom Flex — Best Rotating Category Gas Card

The Chase Freedom Flex offers 5% cash back on rotating quarterly categories (typically including gas stations, grocery stores, or Amazon at various points in the year). You must activate each quarter’s categories.

In quarters when gas is not a 5% category, the card earns 3% on dining and drugstores and 1% elsewhere. There is no annual fee. The downside is that gas is not always a 5% category — you need to plan around the quarterly schedule.

Sam’s Club Mastercard — Best for Sam’s Club Members Who Buy Gas

Sam’s Club sells gas at member prices, which is typically already below market rates. The Sam’s Club Mastercard adds 5% cash back on gas (up to $6,000 per year in purchases, then 1%), plus 3% on dining and travel. There is no annual fee beyond the Sam’s Club membership.

If you are already a Sam’s Club member and buy gas there, this combination (discounted price plus 5% cash back) offers some of the best per-gallon savings available.

Discover it Cash Back — Best for New Cardholders Who Want Gas Rewards

The Discover it Cash Back rotates 5% categories quarterly, which frequently includes gas stations. The first-year benefit is exceptional: Discover matches all cash back earned in your first year, doubling your rewards. For new cardholders in quarters when gas is a 5% category, the effective rate is 10% for the first year.

There is no annual fee. After the first year, it functions similarly to the Chase Freedom Flex — useful in gas quarters, less differentiated in others.

Gas Station Credit Cards vs. General Cash Back Cards

Gas station co-branded cards (like the Shell Fuel Rewards Mastercard or BP Visa) typically offer a discount per gallon rather than cash back. These can be valuable at specific gas chains but lose value if you fill up wherever is cheapest or most convenient.

General cash back cards that reward gas purchases are usually more flexible and competitive. Unless you exclusively use one gas brand, a general card with strong gas rewards is a better choice for most drivers.

How to Maximize Gas Credit Card Rewards

Pay your gas card balance in full each month — carrying a balance at 20%+ APR eliminates any cash back benefit and then some. Also check whether your card caps gas rewards at a certain spend level per year. If your annual gas spending exceeds the cap, you may need to switch to a different card mid-year or use a second card for overflow spending.

Some grocery stores sell gas gift cards — buying these at a supermarket that earns bonus points on groceries can effectively stack rewards.

What to Look for in a Gas Credit Card

• Earning rate: Look for at least 3% on gas; 5% is excellent
• Annual fee: Low or no fee makes more sense for gas-only rewards
• Spending cap: Some cards cap bonus earnings at $1,500-$6,000 per year
• Other reward categories: Cards that also earn on groceries, dining, or travel give you more reasons to carry them
• Gas station restrictions: Some cards exclude warehouse club gas stations (Costco, Sam’s Club) from their definition of “gas station”

Bottom Line

The Citi Custom Cash is the top pick for most gas spenders — no annual fee, 5% back automatically when gas is your top category, no activation required. If you also spend heavily on groceries, the Blue Cash Preferred pays for itself many times over. Choose based on your full spending picture, not just the gas rate in isolation.

Related: Best Credit Cards For Dining Out

Most people do not need to pay to file their taxes. In 2026, there are multiple ways to file your federal — and sometimes state — tax return at no cost. Here is every legitimate free filing option and who qualifies for each.

IRS Free File: Free Software for Most Americans

IRS Free File is a partnership between the IRS and private tax software companies. If your adjusted gross income (AGI) is $84,000 or below in 2025 (for taxes filed in 2026), you can use one of the participating software programs at no charge.

The participating companies include TaxAct, TaxSlayer, FreeTaxUSA, and others. Each has its own eligibility rules and may restrict free filing based on age, state residency, or income. The IRS Free File website has a tool that matches you to the right software based on your situation.

If your AGI exceeds $84,000, you can still use IRS Free File Fillable Forms — electronic versions of IRS paper forms. These do not provide guidance or calculations; they are best for people who know how to complete their taxes without software prompts.

IRS Direct File: File Directly with the IRS

IRS Direct File is a free tax filing tool offered directly by the IRS. It is designed for taxpayers with relatively straightforward tax situations — W-2 income, standard deduction, and common credits like the Child Tax Credit and Student Loan Interest Deduction.

Direct File is available in participating states. Check the IRS website to see if your state participates. For eligible filers, it is the most direct path — you file without going through third-party software, and data transfers directly to the IRS.

Free Versions of Major Tax Software

TurboTax, H&R Block, FreeTaxUSA, and Cash App Taxes each offer free federal filing for simple returns:

• FreeTaxUSA: Free federal filing for all income levels. State returns are $14.99. This is the best value for anyone with more complex situations who still wants free (or cheap) filing.
• Cash App Taxes: Completely free federal and state filing with no income limit. Owned by Block (formerly Square). Handles most common tax situations including self-employment, investment sales, and rental income.
• TurboTax Free Edition: Free for simple returns (Form 1040 with no schedules). Not eligible if you have self-employment income, itemized deductions, or investment income beyond basic 1099-DIV/INT forms.
• H&R Block Free Online: Covers simple returns including the Child and Dependent Care Credit, Earned Income Credit, and education credits — somewhat broader than TurboTax Free.

VITA: Free In-Person Help for People Who Qualify

The Volunteer Income Tax Assistance (VITA) program offers free in-person tax preparation for people who generally earn $67,000 or less, people with disabilities, and limited English-speaking taxpayers. Trained and IRS-certified volunteers prepare your return at no charge.

VITA sites are located at community centers, libraries, schools, and other convenient locations. Find a site near you at the IRS website or by calling 2-1-1.

Tax Counseling for the Elderly (TCE)

TCE is similar to VITA but focuses specifically on people age 60 and older. Certified volunteers specialize in questions unique to retirees — pension income, Social Security, and retirement account distributions. AARP operates many TCE sites through its Tax-Aide program.

MilTax: Free Filing for Military Members

MilTax is a free tax filing service provided by the Department of Defense for active-duty military, National Guard members, reservists, and their immediate families. It includes free federal and state filing through H&R Block software with no income limit, plus access to tax consultants who understand military-specific issues like combat pay exclusions, moving expenses, and multiple state residency situations.

State Free Filing Options

Many states offer their own free filing portals for state income taxes. Some states participate in the Direct File program and offer integrated state filing. Others (like California with CalFile and New York with Free File NY) operate independent free state portals. Check your state’s department of revenue website for options.

What You Need to File Your Taxes

Regardless of which free option you use, gather these documents before you start:

• W-2 forms from every employer
• 1099 forms for freelance income, interest, dividends, or retirement distributions
• Records of deductible expenses (mortgage interest, charitable contributions, business expenses)
• Social Security numbers for you, your spouse, and dependents
• Last year’s AGI (needed to e-file — look on last year’s return)
• Bank account and routing number for direct deposit refund

When Free Filing Is Not Enough

If you have complex situations — a business with significant expenses, rental properties, large investment portfolios with complex transactions, or a major life event — free software may not handle every form or may not provide enough guidance. In those cases, a paid CPA or enrolled agent is worth the cost. But for the majority of W-2 employees, free filing covers everything you need.

Bottom Line

Most people can file their taxes for free in 2026. Start with IRS Direct File or IRS Free File if your income qualifies. If you need more flexibility, Cash App Taxes and FreeTaxUSA cover a broader range of situations at no federal cost. There is no reason to pay $100+ for tax software unless your situation genuinely requires it.

A Roth IRA conversion is the process of moving money from a traditional IRA (or other pre-tax retirement account) into a Roth IRA. You pay income tax on the converted amount now, but the money then grows tax-free and comes out tax-free in retirement. In 2026, Roth conversions remain one of the most powerful tax planning tools available.

How a Roth IRA Conversion Works

When you convert traditional IRA money to a Roth IRA, the converted amount is added to your ordinary income for that tax year. You pay income tax at your current marginal rate. Once the money is inside the Roth, it grows tax-free and qualified withdrawals in retirement are completely tax-free — including all the decades of growth.

There are no income limits for converting — anyone can do a Roth conversion, regardless of how much they earn.

The Tax Bill from Converting

The key downside is the tax hit. If you have $100,000 in a traditional IRA and you convert the full amount, you add $100,000 to your taxable income for that year. If you are in the 22% bracket, that is a $22,000 tax bill. The money to pay that tax should ideally come from outside the IRA — paying the tax from the converted funds reduces the compounding power of the conversion.

Partial Conversions: A Smarter Approach for Many People

Most people do not convert the entire traditional IRA at once. Instead, they convert a specific dollar amount each year — just enough to “fill up” their current tax bracket without pushing into the next one.

For example, if your taxable income is $60,000 and the top of the 22% bracket for a married couple is $94,050, you could convert up to $34,050 without jumping into the 24% bracket. This approach spreads the tax burden over multiple years while still moving money into the Roth.

When a Roth Conversion Makes the Most Sense

Conversions are most powerful in specific situations:

• Lower income years. If you have a gap in employment, early retirement before claiming Social Security, or a year with unusually low income, your marginal tax rate is lower — making a conversion cheaper.
• Before RMDs begin. Traditional IRAs require Required Minimum Distributions (RMDs) starting at age 73. Converting before RMDs begin reduces the balance subject to RMDs, potentially lowering your future tax burden.
• You expect higher taxes in retirement. If you expect to be in a higher tax bracket in retirement than you are now — due to Social Security, pensions, or other income — paying tax now at a lower rate is smart.
• Estate planning. Roth IRAs are not subject to RMDs during the owner’s lifetime, and they pass to heirs income-tax-free, making them excellent estate planning tools.

When a Roth Conversion Does Not Make Sense

Conversions are less attractive if you are currently in a high tax bracket and expect to be in a lower one in retirement (common for high earners who will have limited income once they stop working). They also make less sense if you need the converted money within 5 years — Roth conversion earnings must sit in the account for 5 years before you can withdraw them penalty-free.

The Roth Conversion Ladder (for Early Retirees)

Early retirees who have substantial traditional IRA balances sometimes execute a “Roth conversion ladder.” They convert money each year during their low-income early retirement years, pay minimal taxes, and then access the converted funds 5 years later without penalty. This strategy requires careful planning but can eliminate taxes on large retirement balances.

Roth Conversion and the Pro-Rata Rule

If you have both pre-tax and after-tax (non-deductible) contributions across all your traditional IRAs, the IRS applies a pro-rata rule. You cannot convert just the after-tax portion tax-free — each conversion is treated as coming proportionally from both pre-tax and after-tax funds. This is an important detail to understand before converting if you have made non-deductible IRA contributions.

How to Execute a Roth IRA Conversion

Contact your IRA custodian (Fidelity, Vanguard, Schwab, etc.) and request a conversion. It is typically done online or by phone. You specify the amount, and the custodian moves the money from the traditional IRA to your Roth IRA. You will receive a Form 1099-R in January showing the taxable amount, which you report on your tax return.

Make sure you have enough cash set aside to pay the tax bill — either from savings or by adjusting your withholding so you do not owe a large amount at tax time.

Roth Conversion Rules in 2026

The 5-year rule applies separately to each conversion. Converted amounts can be withdrawn penalty-free 5 years after the conversion (even before age 59.5). Earnings on converted amounts follow the standard Roth IRA rules — age 59.5 and the 5-year rule on the original Roth account opening date must both be met for penalty-free withdrawal of earnings.

Bottom Line

A Roth IRA conversion is not right for everyone, but for people in lower-income years, those approaching RMD age, or those planning their estate, it can reduce lifetime taxes significantly. The optimal approach for most people is a series of partial conversions over several years — converting enough each year to maximize low tax brackets without jumping into a higher one. A financial advisor or tax professional can help you model the numbers for your specific situation.