Money Management

Want to save more money in 2024? See how to accelerate your savings with automatic transfers, helpful budgeting apps, and bank accounts that pay cash bonuses. [[{“value”:”

After the past few years of high inflation, “doom spending,” and depleted savings, millions of Americans are trying to save more money in 2024. The right savings strategies can help you save money automatically, zero in on specific financial goals, and even have fun along the way.

Let’s look at a few expert tips for how to boost your savings.

1. Pay yourself first — by saving automatically

Have you ever heard of the phrase “analysis paralysis”? Sometimes when people have to deal with the mental burden of making a big decision, it causes them to feel stuck. This is often true with trying to save money.

Many people get paralyzed when trying to save: “What percentage of my paycheck should I save? What if I can’t afford to put that much into savings, and I overdraft my checking? What if I can’t pay my bills?” And then another month or year goes by, and they don’t save any money at all.

This is why you need to pay yourself first with automatic savings. Set up automatic transfers to savings from every paycheck, or on a specific date each month.

If that sounds like too much work, don’t worry. Some banks and personal finance apps will do automatic savings for you.

Ally Bank

This bank offers Surprise Savings, a fun and easy feature that analyzes your spending patterns and moves safe-to-save amounts of money from your checking account to your Ally Bank savings account each month.

Albert App

This personal finance and budgeting app offers the premium Albert Genius service that includes automatic savings. The Albert app analyzes your monthly income and spending trends, and then automatically transfers safe-to-save small-dollar amounts to your savings account.

Oportun (formerly Digit)

This debt payoff app offers “effortless savings” (automatic savings) based on your monthly spending and income amounts. The Oportun app subscription costs $5 per month, but it could be worth it — members save an average of over $3,000 per year.

Don’t think, don’t analyze, don’t decide. Just let your money transfer to savings automatically, and then go live your life.

2. Use savings accounts for the new “envelope method”

One popular budgeting plan is known as the “envelope method,” or “cash stuffing,” as the young people are calling it on TikTok. With this budgeting method, you literally stuff cash into envelopes that are labeled with monthly categories of spending, like $800 for “groceries” or $200 for “gas.”

What if you could combine the control and specificity of the envelope method with the FDIC-insured safety and convenience of online banking? Some banks and personal finance apps offer envelope-style savings accounts, where you can save for multiple specific financial goals.

Ally Bank re-creates the envelope method by letting you create savings “buckets” for up to 30 specific goals of your choice. SoFi Bank offers a similar savings feature called “Vaults” — you can set up as many as twenty Vaults for various savings goals. Another option, if you can avoid account fees, is to open multiple savings accounts at your bank or credit union. This could help you save for separate goals like a new car, a vacation, and more.

3. Open a savings account with a cash sign-up bonus

Putting your savings into a high-yield savings account is often the best way to earn a yield on your cash and make your money work for you. But some lower-yield savings accounts can still be worth a look — because they pay cash sign-up bonuses.

That’s right: As banks compete for customer deposits, some are offering to pay you just for putting your money in their savings accounts. Here are a few savings accounts with cash bonuses.

BMO Savings Builder Account

The BMO Savings Builder Account only pays 0.01% APY, but it has a nice feature for people who are trying to save more money: It pays you a $5 reward for every month you deposit $200 or more through the first year. That means after one year, you could have an extra $60 in savings.

PNC Virtual Wallet

The PNC Virtual Wallet is a unique bank account that combines checking and savings capabilities. With your Virtual Wallet from PNC, you get three sub-accounts in one: “Spend” (everyday spending/checking), “Reserve” (a secondary account for short-term budgeting), and “Growth” (a long-term savings account).

The PNC Virtual Wallet pays interest and lets you save for multiple goals. And if you sign up for a new Virtual Wallet account by Feb. 29, 2024 and make qualifying direct deposits, you can earn a cash reward of $100, $200, or $400. Exact rewards depend on your location and the type of account you open.

SoFi Checking and Savings

SoFi Bank is another innovative bank that bundles the checking and savings account. If you open a new SoFi Checking and Savings account and make qualifying direct deposits, you can get a cash bonus of up to $300.

To get the full $300 bonus, you need to make at least $5,000 of direct deposits by June 30, 2024. But even if you don’t get the $300 bonus, SoFi’s account pays a great APY of up to 4.60% (as of Feb. 17, 2024 and as long as you maintain a $5,000 balance or have regular direct deposits made to the account). Having a high-yield savings account is like getting a built-in cash bonus every month.

Bottom line

Want to save more money in 2024? Make it automatic. Use helpful personal finance apps and innovative savings accounts that let you target specific goals. And look for cash bonuses for opening a new savings account that can help give you momentum to boost your savings even more.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Ally is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends PNC Financial Services and Target. The Motley Fool has a disclosure policy.

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I’ve had the same auto insurer for years. But read on to see why I almost made a change. [[{“value”:”

In late 2022, I was driving along the road after picking my daughters up from school when a car pulled out into the street and hit me on the passenger side. Because I was going slowly, and the other driver was only pulling out from a parking spot, thankfully, no one was hurt. But due to the size of the other vehicle, my entire passenger-side door got smashed to the point where it couldn’t be opened, and there was some cosmetic damage to the right side of my vehicle.

What made the situation not only frustrating, but awkward, was that the driver of the other car was an acquaintance of mine. She felt awful about the accident (one of her kids had distracted her enough to take her foot off the brake) and was quick to reassure me that she’d call up her insurer and claim full responsibility. But I still had to go through my auto insurance company to file a claim.

That process, however, was far from pleasant. And because of that, I almost switched my auto insurance for 2024.

A stressful situation made worse

The problem with needing auto repairs is that you’re at the mercy of your local auto body shop. And it, in turn, is at the mercy of car part manufacturers. What should’ve been a fairly quick and easy repair to my car took almost a month because the auto body shop I used (namely because it was approved by my insurer) had to wait that long to receive a replacement door for my vehicle.

During that time, I was forced to go without a car, period, and share my husband’s vehicle because the stingy rental car allowance my insurance company provides wouldn’t have covered the cost of a rental. Not only was the daily allowance low, but I needed coverage for more days than what my policy allowed for. And I didn’t want to shell out money out of pocket for a rental when we could technically get by on one car, albeit in a hassled manner.

I tried contacting my auto insurance company to see if we could somehow put the cost of a rental car onto the other insurance company — the one ultimately responsible for paying, since the other driver was at fault. But my claims adjuster didn’t return my calls or offer any assistance in that regard.

Meanwhile, I had to shell out $750 for my auto insurance deductible to cover the cost of my car repair. I was told by my insurer that I “should” get reimbursed that money eventually once my insurance company recouped its funds from the other driver’s insurance. But every time I called to follow up on that, I got no answer at all.

Thankfully, I had the money in savings to cover the $750 charge that went on my credit card. But in the end, I didn’t get reimbursed my $750 for many months. Someone in that same situation without the money in their savings account would’ve paid interest on that balance and had no recourse.

I stayed for the savings

All told, I was so frustrated by my auto insurance company’s lack of communication and responsiveness during this incident that I started to shop around for new car insurance in 2023 in the hopes of making a change for 2024. Only in doing my research, I found out that I was paying a lower premium with my current insurer than what I’d be paying elsewhere. For this reason, I decided to stay.

Interestingly, a 2022 J.D. Power study found that while Americans were generally satisfied with the service they were getting from their car insurance companies, premium costs were an issue. I seem to have the opposite problem — I’m OK with what my premiums cost because they’re competitive, relatively speaking, but I’m clearly not a fan of my insurer’s customer service.

However, I’m giving my auto insurer one more chance because of the cost, and also, because it may just be that I got stuck with a lousy claims adjuster this last time who was particularly uncommunicative. I’m hoping there won’t be a “next time” in terms of another incident that results in damage to my car. But if there is, then I hope I’ll get assigned to someone better. And if not, then I might really need to make a switch even if it costs me some money.

If you’re unhappy with your auto insurance for whatever reason, it certainly doesn’t hurt to at least do your research and see what other options are available to you. You may ultimately decide to stick with your current insurer like I did, but at least then you’ll have all of the right information.

Our best car insurance companies for 2024

Ready to shop for car insurance? Whether you’re focused on price, claims handling, or customer service, we’ve researched insurers nationwide to provide our best-in-class picks for car insurance coverage. Read our free expert review today to get started.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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No traveler likes waiting for their bags at the baggage claim. Some airlines reward travelers who have to wait a long time. Find out how you can benefit. [[{“value”:”

It can be frustrating dealing with baggage delays when traveling. The last thing you want to do is waste extra time waiting for your luggage to arrive when you’re excited to explore your destination and begin your vacation.

Some airlines have baggage guarantees to ensure travelers get their bags in a reasonable amount of time. If your bags don’t show up at the luggage carousel within the timeframe promised by the airline, you may be eligible for free miles or a flight discount.

Here’s what you need to know before you take your next flight.

A baggage delay could be a win for your wallet

If you’re flying with an airline with a baggage guarantee and your bag isn’t delivered to the baggage claim area within the promised timeframe, you can file a claim and get rewarded for the inconvenience. While not all airlines have programs like this, the following airlines do.

Alaska Airlines

Alaska Airlines has a 20-minute baggage guarantee. If your bags aren’t at baggage claim within 20 minutes of your plane’s arrival at the gate, the airline will provide you with a $25 discount code, which can be used to book a future Alaska Airlines flight or 2,500 bonus miles.

You must contact the baggage office within two hours of your flight’s arrival. You can speak with a customer service agent while you’re still at the airport.

Delta

Delta is committed to providing customers with timely baggage service. Delta guarantees that your checked luggage will be at the carousel in 20 minutes or less when flying on a domestic itinerary. If your bag doesn’t arrive in time, you’ll be eligible to receive 2,500 bonus miles.

You must complete a claim form online no later than three days after your flight arrives. Fliers should allow up to two weeks for their bonus miles to hit their SkyMiles accounts.

Stay alert to airline policies that benefit travelers

When flying with either of these airlines, don’t miss out on these baggage guarantees. If you’re going to be inconvenienced while traveling, you might as well take advantage of programs like this that could help you earn more miles faster or save money on the cost of a future flight.

Every dollar you save adds up and can benefit your personal finances. By making a claim when you’re owed miles, you can get closer to being able to redeem your miles for an award flight, which could make a future vacation less expensive.

Don’t ignore credit card benefits

A baggage arrival delay of 30 to 45 minutes isn’t a huge deal, but dealing with a more lengthy baggage delay can be more frustrating. If you typically check luggage when flying, staying alert to the benefits offered with your rewards credit cards is a good idea.

Some travel credit cards include valuable travel benefits like baggage delay protections, which could help provide reimbursement for eligible necessary expenses like clothing and toiletries while you wait for your luggage to be found and returned to you.

Review your credit card benefits before taking your next flight to know what kind of travel coverage you have. In the market for a new credit card that earns travel rewards? Check out our list of the best travel rewards credit cards to explore your options.

Alert: our top-rated cash back card now has 0% intro APR until 2025

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a lengthy 0% intro APR period, a cash back rate of up to 5%, and all somehow for no annual fee!

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool recommends Alaska Air Group. The Motley Fool has a disclosure policy.

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Thinking of ditching your savings account and putting your cash into CDs instead? Read on to learn what you can expect in the process. [[{“value”:”

Right now is a great time to open a certificate of deposit (CD). The best CD rates are topping 5% APY, and you might be considering switching your savings from a savings account to a CD instead. This can certainly be a good move for some of your cash — but perhaps not all of it. Let’s take a closer look at what you can expect if you abandon your savings account and go all-in on CDs.

You get to lock in your rate…

The biggest benefit to moving money from a savings account to a CD is that the rate on your account won’t fluctuate. Instead, it’ll be fixed for the duration of your CD’s term, be it six months, one year, or even five years. This makes CDs a good investment in a high-interest-rate environment that is predicted to change, much like we’re in now.

The Federal Reserve hiked the federal funds rate a whopping 11 times in an attempt to bring down the soaring inflation we experienced in the wake of COVID-19. These rate hikes seemed to have had an effect, as the rate of inflation for January 2024 was 3.1% — down 6 percentage points from 9.1% in June 2022.

But consequently, many experts believe that rate cuts are on the horizon for later in 2024. When this happens, we can also expect rates on savings accounts and CDs to fall. The rates on consumer bank accounts are not directly linked to the federal funds rate, but the two tend to move in concert.

Locking in a rate on a CD is a great way to earn a guaranteed return on your money, and if you can leave your money alone for the duration of the CD’s term, you’ll know exactly how much money you’ll end up with. Say you put $10,000 into a 1-year CD with an APY of 5.00%. At the end of that year, you can look forward to having earned $250 — just for leaving your money alone. But what if you need that cash before the term is up?

…but you have less access to your money

The biggest drawback to moving money from a savings account to a CD is that you’ll have to leave it in place for the duration of the CD’s term. If you need to break into your CD early, you’ll incur penalties like forfeiting some of the interest you would have earned.

These penalties vary depending on the bank that holds your CD, but let’s say the early withdrawal penalty on your $10,000 1-year CD amounts to six months of interest. That comes out to $125 (half of the $250 you would have earned). But if you need to access your money before six months have gone by, you wouldn’t have even earned that $125 yet and would be facing the loss of some of your $10,000 principal.

This lack of flexibility is why you should think long and hard before locking your money up in a CD. If you’ve got a pot of money earmarked for a future use with a set timeline (say, a home purchase in 18 months), a CD might be a great place for it. The money will grow at a fixed rate, and it’ll be safe from both bank failure (via FDIC insurance) and also potentially you dipping into it for other expenses.

Might you regret locking all your money in a CD?

If you have money that has no set use or timeline (like your emergency fund, which should always be at the ready and accessible), you might regret putting it into a CD. A savings account (or even a money market account) is a much better place for this money.

And if you’re still actively saving, an account that lets you continually add money is also a better idea. Once your CD is open and funded, you won’t be able to deposit more cash into it. But savings and money market accounts can accept deposits anytime.

CDs have some advantages over savings accounts — the ability to lock in a high rate is a big one. But don’t assume that you won’t still need a savings account even if you open a CD or two.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

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