Money Management

Choosing the wrong type of savings account could mean missing out on interest, locking up your money, or other undesirable consequences. Learn more here. [[{“value”:”

Picking a savings account may seem like a simple task — just go to a bank and sign up. But the reality is, there are a lot of different kinds of savings accounts, including standard accounts, high-yield accounts, and more specialized accounts like certificates of deposit (CDs).

If you pick the wrong one for your money, you could end up regretting it, so you don’t want to make this mistake. Here’s what could happen if you select an account that’s not well-suited to your needs.

You could miss out on interest

Different kinds of savings accounts pay different interest rates. For example:

The national average interest rate on a savings account is 0.47%.High-yield savings accounts could pay rates as high as 5.32%.National average rates on a 1-year CD are 1.86%The best 1-year CD rates are as high as 5.50%

Not surprisingly, there’s a really big difference between earning 0.47% interest on your money and earning 5.50% or higher. The table below shows just how much interest you could earn in one year if you had $5,000 in savings, based on these different rates.

You don’t want to miss out on nearly $300 just because you picked the wrong place to put your savings. So, you probably wouldn’t want to leave your money in a standard savings account when high-yield options are available.

Many experts also speculate that the Federal Reserve will reduce interest rates this year, which could result in high-yield savings accounts dropping their rates — since they fluctuate over time with market conditions. With a CD, though, your rate is locked in for the duration of the term once you open the CD account. So if you don’t need to withdraw funds from it before the 1-year term expires and you want to make absolutely sure you get paid at this high rate, a CD may be the right place for your savings.

You could end up not being able to access your money when you need it

Choosing the wrong type of savings account could also cause you another — perhaps even bigger — problem. If you pick the wrong kind of account, it could become more difficult and expensive to access your money.

With a CD, for example, you have to commit to leave your money invested for the duration of the CD term or you could face penalties. If you may need the funds you have saved because they are for emergencies or big purchases, you could end up losing money if you pick a CD.

Likewise, some banks limit the number of savings account withdrawals per month, even though a government regulation limiting you to six penalty-free withdrawals is currently suspended. If you accidentally pick a bank that prevents you from accessing savings often and you need to make regular withdrawals for some reason, this could be a problem.

To make sure you don’t make the mistake of choosing the wrong kind of savings account:

Define your goals for your savings. If you need the money accessible, a high-yield savings account is usually the best place for it. If you don’t need it right away and want to maximize your return on investment and lock in a guaranteed high interest rate, a CD may be best.Research the account terms. Check the fine print to see how often you can withdraw money, when or if you’d be penalized for withdrawals, and whether your rate can change over time.

By taking these steps you can get the account that’s best for you and you won’t lose out.

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There are quite a few options for using travel points. Check out all the typical options and how to make the most of your own travel rewards. [[{“value”:”

Travel points are a popular way to cover travel expenses. When travel deal site Going surveyed users for The State of Travel in 2024, 88% said that they earn and redeem travel rewards.

One of the perks of top travel credit cards is that they give you plenty of ways to use your points. For its survey, Going asked its users how they redeem their rewards. Below, you’ll find the six ways people use their points with the percentage of respondents who chose each one. They could help you decide how to use your own travel points (and see one method you should definitely avoid).

1. Economy flights (58%)

Most people use travel cards so they can save on their usual travel costs or travel more often. Case in point, the most popular way to use travel points by a wide margin is on economy flights. The typical traveler isn’t draining their points on fancy business-class or first-class tickets. They just want to get to their destination at a lower cost.

Economy flights are a great way to do that. With many of the major airlines, economy flights start at 5,000 to 10,000 miles each way. The exact price depends on the flight, but you can often book round-trip domestic flights for 20,000 to 30,000 miles.

2. Hotels (11%)

Outside of flying, the other big travel expense is accommodations. So it makes sense that hotels are the second-most-popular way to use travel points. The best-case scenario is that you book your flight and hotel with travel rewards, which is as close as it gets to traveling for free with points.

The one downside with hotels is that you often need a large number of points to book a stay. That’s not an issue if you’re earning points using hotel credit cards.

But if you have a card with transferable points that you can use with multiple airlines and hotels, then a hotel may not be the right choice. For example, if you have a card that earns American Express points, you can often get more value transferring those points to airlines than hotels.

3. Premium economy flights (10%)

Premium economy is a nice middle ground between economy and business or first class. Seats are larger — on international flights, premium economy is often similar in size to domestic first class.

It costs more miles than economy, but isn’t nearly as expensive as business class. For example, with American Airlines, premium economy generally costs about twice as many miles as economy. Business class costs about three times as many miles as economy.

You won’t find premium economy seats on all routes. But when it’s available, it’s a good choice for added comfort at a reasonable cost.

4. Flight upgrades (7%)

As many frequent flyers know, it’s normally cheaper to upgrade a seat than to buy a ticket in premium economy or business class from the start. That’s true whether paying in cash or miles. There will need to be upgrade availability available. If so, upgrading can help you get a premium seat at a lower cost than usual.

Note that most airlines don’t let you use miles to upgrade award tickets. So if you bought your ticket with miles, you probably won’t be able to pay for an upgrade with miles. But if you bought your ticket with cash, you can typically upgrade with miles (or cash, if you prefer).

5. Business-class flights (6%)

People often rave about booking expensive business-class flights with points. It turns out these redemptions aren’t that common, likely for two reasons:

Award availability in business class is much more limited. Since there are far more economy seats to fill, you’re more likely to find tickets you can book with points there.Business-class tickets cost much more, even with miles. You could end up paying three times as many miles as you would for economy, or more. Business-class award tickets also have more expensive taxes and fees.

That’s not to say business class is a bad way to use your points. It’s much more comfortable, and the travel experience is more enjoyable. It’s just a matter of whether the advantages of business class are worth spending more miles.

6. Cash back (4%)

Cash back is the least popular way to use travel points, which is good news. Unless you need the money, it doesn’t make sense to redeem your travel points for cash back.

You normally get much less value this way. With some credit cards, points are worth half as much (or less) when redeemed for cash back. For example, 50,000 points could be worth $500 to $1,500 if you use them for air travel, compared to $300 as cash back. If you want to earn cash back, you’re better off using one of the many quality cash back cards.

The best way to use your travel points

Using travel points has a bit of a learning curve. And when you’ve spent time earning points, you probably also want to make the most of them.

Take a little time to see how you can use your points. You can find your redemption options in the rewards section of your credit card account. The Ascent also has helpful guides covering the major credit card rewards programs:

American Express Membership RewardsChase Ultimate RewardsCapital One Venture RewardsCiti ThankYou Rewards

Once you know your options, use your points to book the travel you want. Economy flights, premium economy, business class, and hotel stays are all valid ways to use your points. What’s important is that your points help you save on your travel bookings.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Citigroup is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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CVS competes with Costco on price. Find out whether it’s worth getting shots at Costco, even if you’re not a member. [[{“value”:”

It’s sniffle season. Flu and COVID-19 are reminding the public of where we stand. If there is ever a time to vaccinate, it’s now. (Unless you did it early, like a boss.)

Costco offers COVID-19 and flu vaccinations at the Costco Pharmacy. For the low price of $20 apiece, you can get your whole family vaccinated against the flu — without health insurance. With insurance, the shots are likely free, since insurance typically covers immunizations.

Costco isn’t the only vaccination station in town. CVS also offers insurance at its in-store pharmacies. Like Costco, CVS also takes insurance. But if you’re not covered, you’ll pay out of pocket.

Costco vs. CVS vaccine costs

Here’s how Costco and CVS’s sticker prices compare:

Costco offers cheaper out-of-pocket vaccines

Costco offers cheaper vaccinations. If you’re uninsured, or your health insurance doesn’t cover vaccinations, consider getting shots at Costco Pharmacy to save $40 or more on flu vaccines. You can get your whole family covered for $20 each.

But there’s a catch: You need a Costco membership, which costs $60 monthly, to get the best prices. I called my local Costco pharmacy, and non-member prices are $29.99 for flu shots and $185.99 for COVID-19 (Moderna) shots.

Non-members pay up, but the sticker prices are still smaller than those at CVS. Even so, CVS is better than Costco in one big way: right now, CVS is giving COVID-19 vaccines for free.

CVS offers free COVID-19 vaccinations in 2024

CVS offers free COVID-19 vaccines through the Bridge Access program, which covers the cost through December 2024. You get free shots if you’re uninsured or your insurance doesn’t cover the cost of vaccinations.

CVS would otherwise charge $190.99 per shot, so it’s worth taking advantage of the temporary discount. To check if your local CVS (or Walgreens) participates in the program:

Navigate to the official vaccine finderEnter your ZIP codeCheck your desired vaccine typesClick “search”Check the box that says “Bridge Access Program Participant”

The map should populate with nearby pharmacies that offer COVID-19 vaccines for free. You may want to call the store to double-check they have enough shots in stock, as this could save you time.

What else to consider

Both Costco and CVS accept insurance from most major providers. If you’re insured, chances are, you won’t pay a dime for vaccinations out of pocket — insurance will cover it.

But some health insurers consider CVS or Costco out of network, meaning your plan may not cover the cost of shots. Check your insurance plan to be sure.

Technically, both companies allow walk-ins. In reality, wait times can be longer than a 10-foot needle. Skip the lines by scheduling ahead on the CVS app or costco.com. If you’d rather walk in, call ahead to make sure that your store has shots in stock.

I typically schedule vaccines at CVS. My insurance plan covers them, and CVS is less crowded than my local Costco. But if I were paying out of pocket, I’d consider getting my flu shot at Costco to save money. It’s one of many things I could do to improve my personal finances in 2024.

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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. The Motley Fool has a disclosure policy.

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Not all saved cash belongs in your savings account. Learn why money for long-range goals belongs in a different account. [[{“value”:”

Putting money into a savings account is undoubtedly a good move for your personal finances. Money in savings is accessible, so if you are saving for emergencies or for anything you’re going to need money for soon (like a vacation in a few months), a savings account is the right place for it.

But savings accounts should serve that very specific purpose. So, there’s one thing you should absolutely do with this type of account this year.

Ensure the money in your savings account actually belongs there

Making sure you have your saved cash in the right type of account can make a much bigger impact than almost any other move you could make with your money, like changing to a different savings bank to get a slightly higher rate.

See, you should have money in savings if:

You need it accessible at any time, such as for an emergency fund or a car or home repair fund. You cannot predict when you’ll need this money, so it should be available at all times.You need it for a short-term goal and are going to have to pull money out of it fairly soon (like in the next two to five years).

Outside of those situations, money does not belong in a savings account. This is because using a savings account severely limits the potential return on investment that you can earn.

Here’s why taking this step is so important

There’s a good reason that auditing your savings account to make sure the money belongs in it is the single most important thing you can do with this account. The opportunity cost of leaving money in savings when it belongs elsewhere can be huge.

Let’s say, for example, you have an extra $5,000 in your savings account for some reason. Maybe you left it there after buying your house because you’d saved more than you needed for a down payment. Or you saved a year’s worth of living expenses during the pandemic when you really only need six months saved.

The table below shows how much money you could miss out on by leaving that money in savings over 20 years, instead of moving it into a brokerage account or retirement account where it could be invested.

This scenario assumes a 4% interest rate on your high-yield savings account during all this time, which is a very generous (and unrealistic) assumption. It’s unlikely that savings account rates are going to stay that high over the long term once interest rates come down from their current highs. And it compares those yields to what you could reasonably expect to earn if you invested in a brokerage account. (The stock market has returned an average of 10% per year over the past five decades.)

As you can see, you really can’t afford to just let your money sit in savings when it could be working for you — unless, of course, there’s a good reason for it to be there. So take a close look at the money in your savings accounts, identify your goals for it, and decide if keeping it where it is remains the right choice or if you should make a change. You could end up a lot richer for doing so.

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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.The Motley Fool has a disclosure policy.

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Eager to purchase a home? Read on to see why 2024 may not be the optimal year to do so. [[{“value”:”

So far, 2024 is not shaping up to be the best year to buy a home. Not only are housing prices still high, but mortgage lenders aren’t exactly offering up discounted borrowing rates.

Still, you may be eager to buy a home this year. But if any of these signs apply to you, you may want to sit tight until 2025 — or even beyond.

1. There are rumors of layoffs at your company

The U.S. labor market is currently in pretty good shape. Despite that, U.S. employers announced more than 82,000 job cuts in January, according to Challenger, Gray & Christmas.

If you’re worried at all about losing your job, then it’s best to wait on buying a home. Not only might a lack of a job prevent you from getting a mortgage, but it could make it difficult to keep paying that mortgage.

Of course, if there are no indications of trouble at your place of work, and your recent year-end performance review was positive, then there’s not necessarily a reason to be concerned about layoffs. But if there are rumors circulating about downsizing at your company, or if your employer has canceled big projects and put a freeze on business travel, it’s a sign that things may not be so rosy. In that case, you may want to put home-buying plans on hold.

2. You’re already juggling lots of debt

Perhaps you have a steady job you’re not at all worried about. But if you’re already juggling a number of loans and credit card balances, then you may not want to add to that debt by taking on a mortgage.

Remember, too, that one factor mortgage lenders look at when assessing loan candidates is the amount of debt they have relative to their income. If that percentage is high, you might struggle to get approved for a home loan, even if you’re making all of your debt payments when you’re supposed to.

3. Your credit score needs a lot of work

When calculating a credit score, the two factors that carry the most weight are your payment history and your credit utilization, the latter of which represents the amount of revolving credit you’re using relative to your total spending limit.

If your credit score is poor, it’s probably because you either fell delinquent on payments or racked up too much debt relative to your credit limit. In either situation, it’s best to get to a better place financially — one where you can pay your bills on time and rely less heavily on credit — before buying a home.

Also, having poor credit could be a deterrent from getting a mortgage. The minimum credit score for a conventional mortgage is generally a 620, so if yours is lower, you might have to wait on buying a home so you can work on bringing that number up.

You may be hoping to buy a home sooner rather than later. But if these signs apply to you, it means 2024 may not be the best time.

The good news, though, is that now’s not really a great time to be buying a home anyway. So if you decide to wait, remind yourself that buying today would likely mean paying up for a home and signing an expensive mortgage. Sitting tight for a while could make it so you’re buying when market and borrowing conditions are more favorable.

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JetBlue now charges flyers to sit in Core Preferred seats. These fees apply to more desirable seats on JetBlue planes. Find out what you need to know. [[{“value”:”

If you like to travel and fly with JetBlue, there’s some news that you’ll want to know. The airline recently started charging an additional seat selection fee. This fee applies to aisle and window seats in more favorable parts of its planes. While you can avoid this cost, it’s worth knowing before booking your next JetBlue flight.

Anticipate these seat selection fees when flying with JetBlue

JetBlue offers multiple fare types: Blue Basic, Blue, Blue Plus, Blue Extra, and Mint. For all fares except Blue Basic, travelers can choose a seat at no extra cost when booking their tickets. Blue Basic passengers must pay an additional fee to select a seat before check-in.

However, a new seat selection fee will impact some JetBlue customers. The airline recently started charging an additional fee to travelers who choose an aisle or window seat in more favorable parts of the plane. If you want one of these seats, it will cost you.

JetBlue labels these seats as Core Preferred. This fee applies to all flyers except elite TrueBlue status members. The exact fee varies by fare type and route.

Since these seats are closer to the front of the plane, travelers may prefer to pay extra to ensure they can get off the plane more quickly after landing. You should consider your needs and budget before paying an additional seat selection fee like this.

Only paid seats left? JetBlue will provide a complimentary seat during check-in or at the airport if only paid seats remain.

Avoid confusion when selecting a JetBlue seat

Keep in mind that JetBlue has other seats available for an extra fee. The airline has Even More Space seats available for booking. These seats offer travelers up to seven inches of legroom and pre-boarding perks. But to reserve these seats, you’ll be charged an additional fee.

Understanding the differences between Core Preferred and Even More Space seats is essential. JetBlue provides more details about each seat type on its seat selection map, so look to this as a guide before choosing your seat.

Knowing what each seat offers can ensure you choose a seat that meets your needs and have accurate expectations before boarding the plane. It can also help you avoid wasting money. Every extra fee that you pay impacts your bank account.

Three tips to save money on JetBlue flights

Airfare expenses can quickly make your next trip very costly. Are you looking for a way to stretch your vacation budget further? Use deals and rewards to your advantage.

Here are a few tips that can help you save money when flying with JetBlue:

Use the JetBlue best fare finder: JetBlue has a best fare finder tool on its website. You can search for your preferred departure and arrival airports and dates and compare airfare prices in the calendar view. This tool can help you find which dates offer the best flight prices.Book flights during a sale: JetBlue promotes several sales throughout the year. You can keep more money in your pocket by booking tickets during a sale. Follow JetBlue on social media so you don’t miss the next sale.Pool your points: If your household members fly JetBlue often, you may be closer to making an award flight redemption than you realize. JetBlue TrueBlue members can pool their points for free. You can keep more cash in the bank when redeeming points for an award flight.

For additional ways to save money, check out our personal finance resources.

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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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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