Money Management

A high-yield 6-month CD can be a good place to stash mid-term savings. See how much interest you could earn with $5,000 in a short-term CD. 

While there are certainly downsides to interest rates going up, one fantastic upside is that rates on CDs, or certificates of deposit, go way up. In fact, some of the best CDs are offering annual percentage yield (APYs) of more than 5%.

Some CDs have ridiculously high deposit minimums, but a $5,000 deposit will be enough for many highly competitive 6-month CDs. Here’s what that could look like in terms of yield.

High-yield 6-month CDs

You won’t find these kinds of rates from every bank, but the current top 6-month CDs are generally between 4.5% and 5.5%. (I haven’t personally seen one over 6% yet. The current national rate cap is 7.21%.)

With $5,000 to deposit, here’s how much you could earn:

(I assumed that funds compounded monthly. A CD that compounds daily may earn a bit more, but it’ll be less than $1.)

So, where do you find these impressive APYs? Well, if you don’t mind the lack of branches, online banks often have great rates. If you prefer the in-person touch, check out your local credit union. (Some of the highest rates I’ve seen came from credit unions.)

You may also want to check for any promotional CDs. You may find promotional offers with odd terms — literally; I’ve seen 7-month and 9-month promotional CDs — with remarkably high rates, while those banks’ regular 6-month CDs wallow points behind the competition.

Average 6-month CDs

According to FRED data, the average rate for a 6-month CD is just 1.49%. But we all know that “average” means there are lots of CDs with lower rates. (I’ve seen a few as low as 0.03%!)

How much are those low rates going to cost you? Here’s the yield from a $5,000 6-month CD at a more “average” rate:

I think the numbers speak for themselves on this one. A junky 0.03% interest rate from your big-name bank is going to earn you just $7.50 after six months. That’s $106.06 less than you’d earn with a 4.5% APY.

If that doesn’t make you pause, consider this: Given that inflation is currently 3.4%, you’re actively losing value if your CD — or savings account, or checking account — earns anything less than 3.4%.

CDs vs. savings accounts

In general, CDs offer some of the highest APYs of any type of low-risk savings product. Provided you don’t need access to the funds during the maturity period of the CD, they are a great place for your mid-term savings.

However, what if that savings is part (or all) of your emergency fund? It’s really ill-advised to tie up that money for any period of time, even just six months.

Well, you may not have to worry about it. At this very moment, you can find high-yield savings accounts offering the same 5% APY as some of the best CDs. Even better, some banks offer new account bonuses for opening a new savings account and meeting certain deposit conditions.

In other words, you could earn a competitively high APY, not tie up your money, and earn a welcome bonus, all in one move. It’s worth considering, in my opinion.

Whichever route you choose to go, just make sure you’re not letting your funds lose value in a low-yield account. Your money should always be making you money.

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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.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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About one in seven people has missing money in their state coffers. Find out how to find your unclaimed funds in just a few minutes. 

During my two decades of adulting, I’ve gotten four financial windfalls totaling $374. This wasn’t free money, but it felt as if it was free because I’d forgotten about this money for so long. The missing money I’ve discovered over the years came from a final paycheck for a part-time college job, two separate water deposits, and a refund from my doctor’s office.

Wondering if you have missing money waiting to be claimed? Finding out is easy and will only cost you a couple minutes of your time.

Why would I have unclaimed money?

There’s a 1 in 7 chance that you, like me, have money waiting to be claimed, according to the National Association of Unclaimed Property Administrators. The group is a network of the National Association of State Treasurers and runs the website unclaimed.org, which links you to unclaimed property websites for all 50 states, plus the District of Columbia. The group also sponsors the website MissingMoney.com, which allows you to enter your name and search for forgotten funds throughout the U.S. and Canada.

Some examples of scenarios that could result in unclaimed property:

You paid a security deposit to rent an apartment but forgot to leave a forwarding address. After unsuccessfully attempting to contact you, your landlord turns over your deposit to state coffers.You opened a bank account or certificate of deposit (CD) a long time ago, but the account has been dormant for several years. Federal law requires banks to turn over unclaimed deposit accounts to the state after 18 months.Someone who has a safe deposit box at a bank dies, and the executor of the estate doesn’t know it existed. After the bank doesn’t receive the rental fee (the time frame varies based on the state), the bank turns the contents over to the state’s unclaimed property division.

The timeframe for when assets get turned over to unclaimed property varies by state and the type of asset. Most states require a dormancy period – meaning a period where there’s no activity in the account involved – of three to five years. Usually, the business or agency that has your property has made multiple unsuccessful attempts at contacting you before turning it over to the state.

What happens if you find missing money or property?

Searching for your money is always free, though not surprisingly, there are plenty of third-party services out there that charge a fee to do what you can easily do on your own.

The state that has your unclaimed property is ultimately responsible for determining the process for returning your funds. But whenever I’ve found missing money here in Florida, I’ve filled out a quick form that included my contact information, date of birth, and the last four digits of my Social Security number. I checked a box swearing upon penalty of perjury that I am, in fact, Robin Hartill, owner of the property in question. Then, I received a paper check in the mail within a week or two.

Note that if a deceased relative has unclaimed property, you may be able to claim it if you’re the legal heir, but there’s a lot more paperwork involved. You’ll often need to submit an affidavit, death certificate, proof of your relationship to the person, and more.

If your loved one died with a forgotten life insurance policy or investment account that’s now sitting in state coffers, the payoff could make navigating the red tape worthwhile. But for a small deposit or refund, it may not be worth the effort.

For example, when my dad died in 2010, he was owed $30.05 from an insurance company. I started to fill out the claim form several years ago but quickly abandoned the effort. Though I’m sure my dad would have wanted me to have his 30 bucks, it simply wasn’t worth hours of my time.

Is finding missing money a win?

When you find unclaimed money, it may feel like free money. But that’s money you earned — and it’s typically languished for years without earning interest. So while it may feel like a win, it’s better if you don’t lose track of your funds in the first place. Here’s what I could have done with my $374 if I hadn’t lost it to begin with:

I could have deposited it in a high-yield savings account and let it earn compound interest.I could have worked toward maxing out my Roth IRA sooner.I could have paid extra on my credit cards and saved money on interest.I could have used the money on something fun, like a vacation or concert tickets.

By all means, take a minute to see if you have forgotten money. But then take a few more minutes to take inventory of your assets, including bank and investment accounts, as well as security deposits you’ve paid. Any money that winds up in your state treasurer’s hands is money that isn’t working for your personal finances — so try to claim your property before it ends up there in the first place.

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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.Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Robin Hartill, CFP® has no position in any of the stocks mentioned. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Does your employer offer financial wellness benefits? If not, here’s how to create a DIY (do it yourself) financial wellness program! 

Many companies are starting to offer financial wellness programs to help their employees build emergency savings, manage their money, invest for retirement, and reduce financial stress. But what if you’re on your own?

If your company isn’t offering these benefits, here’s a quick guide to creating a do-it-yourself (DIY) financial wellness program.

1. Build emergency savings

They say that “cash is king,” and having some emergency savings in cash should be the first priority for financial wellness. Even before you pay off all your credit card debt, before you save for retirement, you should try to build up some emergency savings in a high-yield savings account.

Why save cash if you haven’t paid off all your debts? Because cash gives you options. Having cash means you don’t have to panic. Cash gives you time to think things through and make the best possible moves for your personal finances. Even if your credit limit gets reduced, even if you have to make minimum payments on your credit card, having emergency cash in the bank gives you a little bit of extra breathing room in case of emergency. And it feels incredibly empowering to watch that number in your bank account grow.

Ideally, you should try to save enough cash to have three to six months of living expenses in an emergency fund. If that goal is out of reach for now, that’s OK — but try to save a few thousand dollars, or get to the U.S. median savings account balance of $1,200. Having $1,200 in the bank can help you pay for an unexpected car repair, medical expense, a deposit on a new apartment, or the deductible on your homeowners insurance in case of disaster.

2. Make a debt payoff plan

Now that you have some cash in the bank, it’s time to build momentum for your financial wellness and pay off debt. Whether you have high-interest debt like credit card debt, a personal loan, or an auto loan that is often lower interest, you might want to make a plan for how to pay off debt faster. The best debt payoff apps can help you visualize a path forward for your debt, showing how long it will take to be debt free depending on your monthly payments and interest rates.

3. Maximize your matching dollars in a 401(k)

If your credit card debt is paid off, or even if you’re still getting started with paying off debt, you should make one simple move for your long-term retirement savings: get your 401(k) match. Many employers offer a 401(k) match based on the percentage of your salary that you contribute to your 401(k) or other work retirement plan. For example, if you put 6% of your salary into your 401(k), your company might match it with an additional contribution equal to 3% of your salary.

Not every company offers this, but see if yours does. If you can get a 401(k) match, don’t leave that “free money” on the table. Even if you need cash to build emergency savings and put toward other financial goals, it’s important to put money into your retirement plan from every paycheck, starting from a young age. Your future self will thank you!

4. Find extra cash in your budget

If you’ve paid off your credit card debt, you’re building up your emergency savings, and you’re contributing to your 401(k) or other retirement accounts, it’s time to take your financial wellness to the next level. Try to get more rigorous about how you spend your money.

Are you really spending your money to have a richer life? Are you spending money on happy memories with people you love? Are you getting good value for your money, with high-quality products and lasting experiences that matter to you? Or are you doing unconscious spending, signing up for too many subscriptions that you don’t use, eating too many last-minute takeout dinners, and doing the financial equivalent of aimlessly scrolling through life?

Use a budgeting app to track your spending. What if you could find an extra $100 per month in your budget? You’d have an extra $1,200 in your savings account in 12 months.

5. Support your physical, mental, and financial health

There’s another old saying that “health is wealth.” The whole point of saving money, paying off debt, and getting smarter about budgeting is to help you have a healthier, happier life. If you have some breathing room in your budget, hopefully you can find some time to take a big-picture look at how you’re feeling about your life. Ask yourself:

Are you getting enough time to sleep, to exercise, to eat delicious, healthy meals?Are you seeing friends and loved ones as often as you’d like?Are you getting regular medical checkups to take care of your health?Do you have a local community group that you belong to, where you can socialize with people you care about?

Financial wellness can support your other health and wellness goals. Don’t be afraid to spend money on therapy, joining a gym or fitness center, hiring a personal trainer, or investing in some high-quality sports equipment that will get you off the couch. Invest in your health, body, and mind, and your financial health is likely to improve too. Financial wellness and personal wellness are often interconnected.

Bottom line: Financial wellness isn’t just about paying off debt or saving money. It’s about giving yourself a foundation of strength so you can be resilient. Spend money on experiences, memories, and support for your physical and mental health.

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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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New cars depreciate quickly. But these vehicles offer the best value for your money years after you drive them off the lot. 

Buying a new car has always been a bit of a personal finance faux pas. The often-quoted statistic that a vehicle loses about 11% of its value right when you drive it off the lot means buying new usually isn’t the best thing for your bank account.

New car prices have surged over the past few years, rising 22% from 2020 to 2023. Higher prices for new vehicles has translated into rising insurance costs for new vehicles as well.

Still, there are plenty of reasons why you might want to buy a new vehicle, so why not focus on the ones that will likely have the best resale value?

Here are five vehicles with the lowest five-year depreciation, according to iSeeCars data.

1. Porsche 911

5-year depreciation: 9.3%

OK, let’s address the elephant in the room first, shall we? If you’re buying the iconic Porsche 911, you probably don’t care much about depreciation or worry about resale values. The 911’s starting price of $114,400 ensures that those wondering whether the car is a good value need not apply.

But the 911 is actually a good value. Most luxury vehicles depreciate quickly, but Porsche’s superbly built flagship sports car loses just 9.3% of its value after five years. And Kelley Blue Book notes that if you hold onto the 911 long enough, its value may actually go up. I wonder if my wife would be open to a fantastic investment idea I just had…

2. Toyota Tacoma

5-year depreciation: 20.4%

Toyota consistently makes some of the most reliable vehicles with high resale values, and the Tacoma pickup truck keeps the track record intact. The Tacoma loses just 20.4% over a five-year period. So, go ahead, and hit the off-road trails to your heart’s content — a few bumps and scratches might not ding the value too much.

While the Tacoma is an excellent choice for buyers looking for great value, it’s worth mentioning that car insurance is usually more expensive for pickup trucks than other vehicles. So be sure to shop around for a good rate to get the most value from your purchase.

3. Jeep Wrangler

5-year depreciation: 20.8%

Unsurprisingly, one of the most well-known symbols of youth and independence remains popular among buyers many years after it rolls off the dealer’s lot. Jeep owners are also a loyal bunch, which likely leads to more demand for Wranglers, no matter the model year.

iSeeCars says the legendary Wrangler depreciates by 20.8% after five years, giving you both one of the most iconic off-roading vehicles ever made with the practicality of solid resale values.

4. Honda Civic

5-year depreciation: 21.5%

I’ve been a fan of Hondas ever since my parents purchased an Accord back in the 80s (yikes, I’m old). I remember hanging out in the dealership, sitting in all the new cars in the showroom and testing out what was a fancy new feature at the time: power windows.

I’ve owned several Hondas since then, and I’m not the only one who seeks them out. Honda’s knack for creating reliable vehicles attracts a loyal following and helps keep the resale values of many of its models, including the Civic, high. Depreciation is just 21.5% after five years.

5. Subaru BRZ

5-year depreciation: 23.4%

With a starting price of just $30,195, Subaru’s little sports car is affordable, in addition to being a great value. That’s no easy feat to pull off, but the vehicle — co-developed with Toyota and also released as the Toyota GR86 — marries a fun-to-drive car with low depreciation.

Buyers can sleep soundly at night knowing they’ve found a great vehicle with strong resale value, not to mention multiple 10Best accolades from Car and Driver.

If you’re looking for even more value

Buying a vehicle that retains more value than most can be a great financial decision. And one way to maximize that value is to keep vehicle costs, including insurance and repairs, to a minimum.

Choosing a vehicle that has a high reliability rating will help you with maintenance costs. But, some people forget to apply the same research skills to finding the best car insurance.

Auto insurance prices have ballooned 20% over the past year. Taking the time to get a few rate quotes from insurance companies can save you significant cash over the lifetime of your vehicle — maximizing the value you get out of it.

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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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