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by Olivia Hughes - January 20, 2021

Hours of Work Needed to Pay Rent in the 25 Largest Cities â 2021 Edition

According to the Census Bureau, almost 20 million renters allocate at least 30% of their household income towards rent, indicating that they are housing cost-burdened. This can be especially true in larger cities where the cost of living is higher. And if time is money, then many Americans will have to resort to working longer hours to make ends meet without having to use up any existing emergency funds.

In this study, SmartAsset measured the hours of work needed to pay rent in the 25 largest cities in the U.S. To determine our estimates, we considered data on the following metrics: average annual take-home pay, average hours worked per year and median monthly rent. For details on our data sources and how we put all the information together to create our final rankings, check out the Data and Methodology section below.

This is SmartAssetâs fourth annual study on the hours of work needed to pay rent. Check out the 2020 version here.

Key Findings

56.6 hours. The average number of work hours needed to pay rent across the largest 25 U.S. cities is 56.6. In the six cities at the top of our list, renters must work at least 6% longer to pay rent alone. It takes more than 60 hours of work in all six cities to cover average rental costs.
California cities stay at the very top, but Los Angeles drops for the first time in recent years. In every version of this study since 2018, the three cities where the average worker needs to work the most to pay rent have been as follows: San Jose, Los Angeles and San Diego, California â in that order. In this yearâs study, however, San Diego jumps to the No. 2 spot and Los Angeles drops to No. 3.

1. San Jose, CA

In San Jose, California, it takes more than 76 hours of work on average to pay median monthly rent, which is $2,223 or almost $26,700 per year. The median worker earns $41,419 after taxes, with an estimated hourly wage of about $29.

2. San Diego, CA

The average annual take-home pay in San Diego, California is $34,157, or an hourly wage of less than $25. According to our estimates, the average worker in this city would need to work almost 74 hours to be able to pay a monthâs rent, which is $1,806.

3. Los Angeles, CA

In Los Angeles, California, the average worker needs to clock almost 73 hours to cover median monthly rent, which is $1,554. The average number of hours worked in the city is about 38 hours per week, which means that it would take this person almost two weeks to cover that total amount of time. The average worker in Los Angeles earns $34,669 before taxes and takes home about $28,815 â or a little more than $21 per hour.

4. Boston, MA

In Boston, Massachusetts, the average worker earns $35,800 after taxes, or about $25 an hour. The median monthly rent in Boston is $1,735, which means residents there will have to work more than 69 hours to pay for a monthâs rent. At an average of about 38 hours worked per week in Boston, it would take nearly 13 days for a worker to cover this amount.

5. New York, NY

New York City has the fifth-highest number of hours needed to pay rent across the 25 largest cities in this study. With a median monthly rent in the city of $1,483, a worker person would have to work 62.0 hours to cover rent. The average worker in New York earns $42,326 and takes home $32,608 after taxes, or $23.90 per hour.

6. San Francisco, CA

In San Francisco, California the median monthly rent is $1,959. This is the second-highest monthly rent amount across all 25 cities in our study, following only San Jose, California. The average worker in the city earns about $32 per hour, or $51,548 after taxes. This means that the worker would have to work 61.2 hours to cover rental costs. At an average of 40.2 hours worked per week in San Francisco, it would take this worker about a week and a half to do so.

7. Denver, CO

In order to cover the costs of the average rental apartment or home in Denver, Colorado, the average worker would need to work almost 60 hours. The median monthly rent in Denver is $1,433. The average worker in Denver earns $47,146 before taxes, with a take-home pay of $37,922 or $23.92 an hour.

8. Nashville, TN

The median monthly rent in Nashville, Tennessee is $1,191 or $14,292 per year. With the average worker there earning $31,889 after taxes or $20.77 per hour, it would take him or her approximately 57 hours of work to cover the cost of rent each month.

9. Austin, TX

The average worker in Austin, Texas earns $42,416 and takes home $35,739 or $23.34 per hour. Monthly rent costs in Austin reach $1,334 per month, or $16,008 per year. At that rate, it would take this worker more than 57 hours to cover rental costs.

10. Charlotte, NC

Median earnings for a worker in Charlotte, North Carolina are $38,528. This worker would take home $31,118 or $20.61 an hour. Charlotte has the lowest median monthly rent across the 10 cities on this list, at $1,174, resulting in a total annual rent of $14,088. To be able to pay for a monthâs rent in Charlotte, the average worker would have to work 57 hours.

Data and Methodology

To find out how many hours of work are needed to pay rent in the 25 largest cities in the U.S., we looked at data on the following three metrics:

Average annual take-home pay. This is the average workerâs earnings after accounting for income taxes. To find out how much each worker would pay in income taxes, we ran median workerâs earnings data through our income tax calculator. We assumed the average worker would contribute nothing to an IRA or 401(k), take the standard deduction and file as a single filer. Earnings data comes from the U.S. Census Bureauâs 2019 1-year American Community Survey.
Average hours worked per year. This is the number of weeks worked per year multiplied by the number of hours worked per week. Data comes from the U.S. Census Bureauâs 2019 1-year American Community Survey.
Median monthly rent. Data comes from the U.S. Census Bureauâs 2019 1-year American Community Survey.

First, we found the average hourly wage for each worker by dividing average annual take-home pay by average hours worked per year. Then we divided the monthly median monthly rent by the average hourly wage. This resulted in the average hours of work needed to pay a monthâs rent. Finally, we ordered the cities from highest to lowest based on the average number of hours needed to pay rent.

Tips for Managing Your Savings

How much are you really taking home? When budgeting how much to allocate to needs, wants and savings, itâs important to know how much youâre actually starting with. Use SmartAssetâs paycheck calculator to find out your post-tax earnings.
Budgeting is key. If the cost of living in an area is high and moving is not an option, consider using our online budget tool to make sure your expenses are all covered.
401(k) matching. Taking advantage of a 401(k) employer match program is an ideal way to build your retirement savings faster. When considering a new job always review the retirement plan offerings to be sure that itâs the right one for your needs.
Expert financial advice. You already work hard to make ends meet, so why put in any more hours than you need to in order to get expert help with your assets? Finding the right financial advisor doesnât have to be hard. SmartAssetâs free tool matches you with financial advisors in your area in five minutes. If youâre ready to be matched with local advisors that will help you achieve your financial goals, get started now.

Questions about our study? Contact press@smartasset.com.

Photo credit: Â©iStock.com/mphillips007

The post Hours of Work Needed to Pay Rent in the 25 Largest Cities â 2021 Edition appeared first on SmartAsset Blog.

Source: smartasset.com

by Olivia Hughes - January 16, 2021

CIT Bank Savings Account: How Much Can You Earn

A CIT Bank Savings account will help you boost your savings, earning 20 times more than what a traditional bank account will offer you.

If you have a regular checking and savings account at your local bank, you may notice that your rate on the savings account is less than a tenth of a percent.

You can keep your savings account at your local bank if you choose to. But you don’t have to.

Instead of getting crummy interest rates, you can switch to or open a CIT Bank savings account.

CIT Bank savings accounts are offered online, where you can earn a competitively high yield.

*TOP CIT BANK PROMOTIONS*
PROMOTIONAL LINK	OFFER	REVIEW
CIT Bank Money Market	1.00% APY	Review
CIT Bank Savings Builder	0.95% APY	Review
CIT Bank CDs	0.75% APY 1 Year CD Term	Review
CIT Bank No Penalty CD	0.75% APY	Review

CIT BANK: AN OVERVIEW

In brief, CIT Bank is an online-only bank. That means, there is no local branch.

There are no ATMs. You will perform every transactions online. However, the bank does not charge its customers when they use another bank’s ATMs.

And if the bank charges you a fee, CIT will reimburse you up to $15 every month.

The bank currently offers some of the highest interest rates on its savings accounts and its other products, such as CDs, checking account and money market account.

Lastly, there no are no account maintenance fees on any of the bank’s products.

HOW MUCH CAN I EARN WITH A CIT BANK SAVINGS ACCOUNT?

With a CIT Bank savings account, you will earn a 0.95% APY through the Savings Builder option and 1.00% APY through Premier High Yield Savings account.

But certain conditions will apply (more on this below).

CIT Bank Savings accounts offers interest rates that are 20 to 25 times higher than what a traditional, brick and mortar bank is currently offering.

Because of that big difference between CIT Bank’s high-yield savings accounts between a traditional savings account, you’ll earn more money.

For example, if you have $5,000 in a traditional savings account with a 0.10 APY%, you would get just $5 in a year.

But if you have that same amount of money in an account earning 2%, you return will be $100.

CIT Bank offers two savings accounts options: 1) the Savings Builder and the Premier High Yield Savings account.

Both accounts require a minimum opening deposit of $100. But neither has monthly maintenance fees.

Here’s a quick table of CIT Bank two savings accounts.

CIT Bank Savings Account	Minimum deposit	APY
Savings Builder	$100 or $25,000	0.95%
Premier High Yield Savings	$0	1.00%

The Savings Builder:

The CIT Bank Savings Builder will allow you to earn 0.95% APY, but only if you make at least one monthly deposit of $100 or more.

Or, if you keep a balance of at least $25,000. Interest in this high-yield savings account compounds daily to boost your earning.

Click here to learn more about CIT Bank’s Savings Builder.

The Premier High Yield Savings account:

With this account, you will earn 1.00% APY regardless of your account balance or monthly fees.

Interest in this savings account is also compounded daily to maximize your earning.

PROS AND CONS OF CIT BANK SAVINGS ACCOUNTS

Pros:

No monthly fees on deposit accounts;
a minimum deposit requirement of $100;
Refunds ATM fees — because the bank does not have ATMs, it does not charge customers who use another bank’s ATMs. And if there is a fee, CIT will refund you up to $15 per month.

Cons:

No bank branches or ATM;
No 24/7 customer support — as with all high yield savings accounts, most inquiries are handled online. While live telephone is available, hours are limited.

HOW TO OPEN A CIT BANK SAVINGS ACCOUNT?

To open an account, simply go to the CIT Bank homepage, and create the account online.

You’ll need to provide your name, address, phone number, and ID. You’ll also need to provide your social security number.

Note that CIT does not have any branches. Everything must be done online.

If you’re opening a CIT Bank Builder Savings account, you will need to make an initial minimum deposit of $100.

You will also need to make monthly deposit of $100 to take advantage of the 0.95% APY. Or, you will need to have a $25,000 balance.

If you’re opening the Premier High Yield Savings account, you’re not required to make any initial minimum deposit.

So, you can open the account first and fund it later.

HOW MUCH TO KEEP IN YOUR CIT BANK SAVINGS ACCOUNT?

How much should you keep on your savings account will depend on your savings goals.

If you’re opening the account to serve as an emergency fund, experts have recommended to keep at least three to six months of living expenses.

That money is reserved in case of an emergency like a loss of job, you fell ill, or need money for a major car repair.

But one thing you should know is that deposits at any banks are covered by the federal government up to $250,000.

So if you have more than that, you should split your money into multiple accounts.

WHO IS A CIT BANK ACCOUNT GOOD FOR?

A CIT Bank savings account is good for anyone who:

Wants to earn a higher yield on the savings accounts;
Does not mind having their banking online;
Can commit saving at least $100 every month; or
Can carry $25,000 balance.

WHAT OTHER PRODUCTS CIT BANK OFFERS?

In addition to the two savings accounts, the bank also offers a checking account, money market accounts and Certificate of deposits (CDs).

The checking account is called “eChecking.” It is the only account the bank offers. There is no monthly fees and you can open the account with as little as $100.

Note that CIT Bank does not have ATMs. But the bank does not charge you for using another bank’s ATM.

And CIT will refund you for ATM fees other banks charge you.

CIT bank also offers one money market account. This money market account has no monthly fees and requires an opening minimum deposit of $100.

CIT Bank has several terms CDs, which range from 6 months to 5 years.

There is also a no penalty 11-month term, where customers can withdraw money with no penalty.

CIT Bank also offers jumbo CDs, ranging from two to five years. You can open a term CD, including the no-penalty CD, with a minimum of $1,000.

The Jumbo CDs require a minimum of $100,000.

Click here to learn more about CIT Bank CDs.

THE BOTTOM LINE

A CIT Bank savings account, is a high yield savings account, where you can a higher yield than regular savings accounts.

You will earn a 0.95% APY through the Savings Builder option and 1.00% APY through Premier High Yield Savings account.

So, whether you’re saving money for an emergency fund, saving money to go on a vacation, or saving money to buy a house in the next few years, CIT Bank is the right bank for you.

Speak with the Right Financial Advisor

If you have questions about high interest savings accounts, you can talk to a financial advisor who can review your finances and help you reach your goals. Find one who meets your needs with SmartAssetâs free financial advisor matching service. You answer a few questions and they match you with up to three financial advisors in your area. So, if you want help developing a plan to reach your financial goals, get started now.

The post CIT Bank Savings Account: How Much Can You Earn appeared first on GrowthRapidly.

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