Money Management

Is Costco expanding to EV charging? Find out what’s in store for Costco members. [[{“value”:”

Costco is sending mixed messages to electric vehicle (EV) drivers. The warehouse club now offers fast charging stations, but only at some stores. The company has partnered with all sorts of EV charging providers, including Tesla and Electrify America, but it has done zero advertising of the service.

Is Costco secretly ramping up its charging station installations, or is it taking a wait-and-see approach? And how much value, if any, do these stations offer Costco shoppers’ personal finances?

Costco is testing out EV charging stations

In Costco’s Q4 2023 earnings call, Costco CFO Richard Galanti says, “As it relates to EV charging, we’re testing it in a number of locations.”

Considering the trends currently shrinking costs, people, myself included, will probably buy more and more EVs. A handful of EV chargers at my local Costco warehouse would do a lot to get my butt into the store itself. Since I’m there, I might as well shop around, yeah?

Right now, Costco is offering discounted EV charging at limited stores across the U.S. Some states where EV chargers have been sighted include California, Colorado, Florida, Utah, Virginia, New Jersey, and Georgia. (Thank you for your service, Reddit and X posters.)

Redditors have reported a mix of Level 2 charging at a Torrance (California) location and fast charging at a warehouse in Colorado.

Heads up, some stations are members-only, though this may vary by location.

Costco chargers are cheaper than typical

Regarding the price of EV charging, Richard Galanti says, “You know, if there’s a charge for it, it’s going to be less at Costco. And we’ll wait and see.”

PlugShare reviews at the Costco Wholesale Torrance location indicate customers are satisfied with the low prices offered, though there have been issues, including nonfunctional chargers.

It seems like Costco may be copying the strategy of Costco gas stations, which are notoriously affordable — good news for Costco members and EV drivers. The prices of chargers vary by location, much like gas stations.

Costco offers other EV discounts

Costco also sells at-home EV chargers at Costco prices.

Some chargers are online-only — you must shop at Costco.com to buy them. Non-members can purchase a couple of chargers, though Costco charges 5% extra for the privilege. Regarding non-member prices, the Juicebox 40 is $499 at Costco.com, $434 at Walmart, and $489.00 at the original retailer. So you might be paying more if you’re not a member.

Costco has a great return policy. If that’s important to you, it may be worth paying up.

Costco credit card holders get an additional 4% off electricity at EV charging stations. This applies to EV chargers generally, not just ones at Costco. Plug-in hybrid drivers can also take advantage of the 4% off gas stations perk. Seems as if Costco has its drivers covered.

The future of EV stations at Costco

It looks as if Costco is taking a wait-and-see approach to EV chargers. Should the store find offering them profitable, Costco will probably continue rolling them out to locations near you.

In the meantime, folks will have to settle for at-home chargers and outside networks. With any luck, the cost of charging EVs will remain competitive with gas prices, and shrink even further. Should Costco offer charging stations, prices will be lower than ever.

Where to invest $1,000 right now

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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.Cole Tretheway has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale, Gala, Tesla, and Walmart. The Motley Fool has a disclosure policy.

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It’s important to be careful when opening a CD. Read on to see what could go wrong. [[{“value”:”

CD rates have been strong for quite some time now. And a lot of savers have been trying to take advantage of them.

Last year, my friend opted to open a 1-year CD to snag a great rate herself. And her CD is pretty close to coming due. But while my friend made some nice money in interest, she regrets her decision to open a CD for one big reason.

When your CD is a source of stress

My friend was convinced she could afford to part with the money she put in her CD. And she made sure to keep a pile of cash in her savings account.

But about halfway through her CD’s one-year term, her car, which happens to be older, started giving her trouble. And while she was able to raid her emergency fund to cover an initial repair, a second one popped up a few months later that she no longer had the money on hand to cover.

At that point, she had a choice — cash out her CD early and take a penalty, or find another way to come up with the money. She opted for the latter. But it wasn’t easy.

My friend wound up charging her car repair on a credit card and working a side hustle to pay off the bill quickly. Because she hustled, she didn’t rack up much interest, and the penalty for cashing out her CD early would’ve been higher than the small amount she paid her credit card company. But all told, it was a stressful situation.

And the worst part was that she had the money. It was sitting right there in her CD. She just couldn’t touch it because she didn’t want to get penalized.

Lesson learned

My friend sorely regrets putting as much money as she did into a CD. Once it comes due, which is happening soon, she plans to roll only about one-third of that sum into a new CD. She plans to keep the remaining money in a regular savings account so it’s there for her when issues with her car arise again (or, more likely, a new car, since she’s only willing to sink so much money into her current one).

If you’re thinking of opening a CD, make absolutely sure you can afford to part with the amount of money you’re locking away. You could also try to find a CD that doesn’t charge a penalty for early withdrawals, but those can be hard to find.

Another thing you can do is ladder your CDs so you have money freeing up at different times during the year. Finally, familiarize yourself with your CD’s early withdrawal penalty rules. For example, at Barclays, you’ll face a penalty of 90 days’ worth of interest for withdrawing a CD early with a term of 24 months or less.

But banks are allowed to determine their penalties independently — there’s no universal standard. While you might hope to never be in a position where you’re looking at a penalty, things happen. It’s important to know what you’re getting into.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

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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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.

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Mortgage rates are pretty high right now. But should you rush to buy a home as soon as they fall? Read on to find out. [[{“value”:”

A fair number of people who wish to buy homes today can’t. And a big reason boils down to the fact that mortgage loans are expensive to sign.

As of this writing, the average interest rate on a 30-year mortgage is 6.63%, per Freddie Mac. And as of December 2023, the median existing home sale price was $382,600, as per the National Association of Realtors. If you were to put a 20% down payment ($76,520) on a home with that purchase price, at 6.63% for a 30-year loan, you’d be looking at a monthly payment to your mortgage lender of $1,960 for principal and interest.

You may be waiting for mortgage rates to fall before making an offer on a home. And there’s a chance that at some point this year, rates for a 30-year loan will drop below the 6% mark.

How come? The Federal Reserve has paused its interest rate hikes for multiple months in a row. And the central bank has signaled that rate cuts are likely in store for 2024.

Once the Fed lowers its benchmark interest rate, borrowing costs for consumers could come down across the board. So while there’s no guarantee that home buyers will be looking at sub-6% mortgages this year, it’s possible.

But even if rates get to that point, you don’t necessarily want to rush into homeownership. Instead, you’ll need to crunch the numbers to make sure you can swing a home purchase.

Home prices may not come down

Though there’s a pretty good chance that mortgage rates will come down throughout 2024, that doesn’t automatically mean that home prices will shrink. And even if borrowing gets less expensive, elevated home prices might still prevent a lot of buyers from making a move.

In fact, if mortgage rates come down this year, home prices might actually rise. Lower borrowing rates might spark an uptick in buyer demand. And if more buyers start clamoring for homes, sellers will be in a strong position to raise their asking prices.

You’ll need to do some serious math before making an offer

Regardless of how much mortgage rates drop this year and where home prices stand, it’s always important to do some calculations to see how much house you can afford. As a general rule, you really don’t want to spend more than 30% of your take-home pay on housing. Going above that threshold could put you at risk of falling behind on not just your mortgage or home-related costs, but your bills on a whole.

As such, you may or may not be able to afford a home once mortgage rates fall below 6%. The answer to that question will depend on the cost of the home you’re looking at and the amount of money you have available to put down. It’ll also hinge on the additional costs of owning that home, such as property taxes and homeowners insurance.

Similarly, it may be that you can afford a home even if mortgage rates remain above the 6% mark. So rather than fixate on a single benchmark with regard to mortgage rates, instead, focus on the big picture. If you can afford a home whose monthly costs don’t exceed 30% of your pay, you may be in a strong position to buy, no matter how much your mortgage lender is charging you.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

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This writer has more than $100 in free Costco money to spend. Read on to see how you can snag some, too. [[{“value”:”

These days, a lot of people are struggling with lingering inflation. And if you’re one of them, free cash might do a world of good for your financial situation. But what if I were to tell you that with the right strategy, you could score free cash to spend at Costco?

Recently, I found myself with $106 in free Costco cash to spend. With the right membership, you could snag a pile of free Costco cash as well.

The upside of an Executive membership

Years back, when I decided to upgrade to an Executive membership at Costco, I wasn’t sure if that was the right move, since it meant paying double. But I’ve since realized that because I shop at Costco regularly, an Executive membership absolutely makes sense.

With an Executive membership, you get 2% cash back on Costco purchases. Most weeks, I do a grocery run at Costco where I spend about $100. Sometimes, that $100 is a combination of food and things like tissue boxes or cleaning supplies.

Occasionally, I’ll make extra purchases at Costco, like buying holiday gifts or apparel. But all told, I spend a decent amount of money at Costco every year.

Last year, I spent about $5,300 at Costco, which resulted in a $106 rewards certificate courtesy of my Executive membership. As such, during my last trip to the store, I owed no money at checkout. I got a week’s worth of groceries and household supplies without having to swipe my credit card.

Is an Executive membership right for you?

If the idea of getting free Costco cash appeals to you, then you may want to consider an Executive membership. Now, you should know that the cost is $120 a year, whereas a basic membership at Costco only costs $60. But if you typically spend more than $3,000 a year at Costco, then the upgrade makes sense.

If you do the math, you’ll see that 2% of $3,000 is $60, which is the exact cost of upgrading. So if you spend even a dollar more, you’re ahead of the game.

You may not shop at Costco weekly like I do. But even so, an Executive membership might pay off.

Let’s say you tend to go to Costco once a month and spend $100 each time. That’s only $1,200 in a year. But if you’re planning a big trip and intend to book it through Costco Travel, that counts toward your Executive membership. So a $2,500 vacation package could easily put you over that threshold.

Similarly, let’s say you plan to upgrade a TV and laptop at home this year. Those items combined might cost $1,800 or more, getting you to the point where the upgraded membership makes sense.

A risk-free endeavor

If you’re still not sure if it’s worth it, though, do this: Pay for the upgrade and see how your first year goes.

If you don’t end up earning enough cash back to make up your $60 upgrade fee, go to customer service and revert back to a basic membership. From there, a Costco customer service representative will see how much cash back you’ve earned and will pay you whatever amount is necessary to get you to $60.

So let’s say you upgrade and only rack up $52 in cash back. When you go to downgrade your membership, you’ll get an $8 refund.

All told, the Executive membership at Costco is really a no-risk proposition. But it could leave you with a nice pile of cash to spend — even if you do what I did and spend it on boring stuff like toilet paper and milk.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has nearly tripled the market.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

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*Stock Advisor returns as of February 12, 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.Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

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