Money Management

If you stash an extra $10,000 in your checking account, you likely won’t earn interest. Find out where to keep your savings and see how much you can earn. 

Many people keep some extra cash in their checking accounts. That’s not a bad strategy to ensure you have enough cash to cover your bills and give yourself extra wiggle room. But keeping all your extra money in a checking account isn’t the best move.

Why? Many of the best checking accounts don’t earn interest, so you won’t have the opportunity to grow your money. Interest can add up quickly and can help to improve your personal finances. Do you have an additional $10,000 stashed in your checking account? Discover why you may want to transfer your savings to a high-yield savings account.

Interest can help you boost your bank account balance

As mentioned above, the average checking account doesn’t offer interest or rewards. That means there’s little incentive to keep your savings here. But if you instead keep your emergency fund in a bank account that earns interest, your money will grow over time.

When researching savings accounts, paying attention to the annual percentage yield (APY) is essential. Banks use APY to describe the returns customers can expect when keeping their money in their savings accounts for one year. Since some banks offer higher rates than others, you’ll want to compare rates before opening a new account.

Don’t miss out on hundreds of dollars in interest per year

Are you wondering how much interest you’ll miss out on by an extra $10,000 in your checking account? It may be more than you think. Below, I’ll show you how much money you could earn by stashing an extra $10,000 in a high-yield savings account for one year.

To determine how much interest you’ll earn, multiply your deposit ($10,000) by the APY. This will show you how much you’d earn if you keep it all in your savings account for a year. If you take some money out before then, you’ll earn less.

I used a 4.50% APY for a high-yield savings account for the following calculations. The bank accounts on our best high-yield savings accounts list have APYs ranging from 4.15% to 5.25% — so I went with a number somewhere in between.

Earn even more the longer your money sits

I don’t know about you, but I’d rather earn $450 in a year instead of $0. That’s a lot of cash! Transferring your savings to an interest-earning bank account can be especially worthwhile when you have a large chunk of cash in your emergency fund.

But you can make even more with compound interest, which is interest that you earn on interest. To better show the benefit of compound interest, I’ll outline how much money you can make if you keep your initial $10,000 deposit in a high-yield savings account for anywhere from one to three years.

The following calculations assume you make no additional contributions beyond your initial deposit. You can earn even more if you continue to deposit money into your account. If you plan to contribute money regularly, we recommend automating the savings process for simplicity.

Here’s a breakdown of the potential earnings:

That’s $1,411.66 earned in three years, assuming the APY doesn’t change. It’s worth mentioning that APYs can change over time, so your APY likely won’t stay the same rate forever. It pays to transfer your emergency fund stash to a high-yield savings account.

This one money move can be a massive win for your finances

Do you have an extra $10,000 in your checking account? You may want to open a high-yield savings account. You could lose hundreds or even thousands of dollars in interest by keeping your extra money in the wrong bank account. Don’t miss out on free money.

These savings accounts are FDIC insured and could earn you 12x 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 can earn you 12x the national average savings account rate. Click here to uncover the best-in-class picks that landed a spot on our shortlist of the best savings accounts for 2023.

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. Natasha Gabrielle 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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Hate overpaying for airline tickets? Google Flights has a new feature that can save you money on flights. Discover how it could help you get the best price. 

While airfare can be costly, getting a deal when buying airline tickets is possible. Many travelers use airfare search tools like Google Flights to get a feel for prices before they book tickets. Google Flights has introduced a new feature that could help you save more money on this costly travel expense. Find out what you need to know before booking your next flight.

Google Flights makes it easy to research airfare prices

By using travel search tools like Google Flights, you can plan your next vacation without ignoring your budget. These tools make researching and comparing airfare prices easier before booking tickets. That way, you can make a more informed financial choice.

When using Google Flights, you can play around with different destinations and dates. You can filter your results to find the right flight for your needs. For example, if you prefer nonstop flights, you can filter your search results so you’re only shown flights without connections. It’s a great tool to use as you start planning a trip that requires you to fly. Google Flights also tells you whether the prices shown are low, typical, or high.

Google recently announced another feature that can help travelers save more money — and it’s rolling out this week. The new feature will alert travelers whether now is a good time to book or if it may be possible to get a cheaper price by booking later. If Google thinks you can score a lower price later, it will give you a suggested timeframe to book.

It’s worth noting that this feature won’t be available for all flight searches. According to Google, it will be available for searches when enough reliable trend data is available. This brand-new feature could make the decision-making process easier.

Plus, we’re all looking for ways to keep more money in our bank accounts, and tools like this can help us do that. Google Flights is just one of many such airfare pricing tools.

RELATED: Four tools to find cheaper flights

Three tips to save money on travel expenses

Here are a few tips that may help you save money on travel costs:

1. Set a budget and don’t delay planning

Outlining a vacation budget is beneficial because it can help you stay on track as you book reservations and establish an itinerary. It can also be a win for your wallet when you plan and make bookings early. When booking hotels, you may want to consider making refundable reservations, so you can book early and monitor prices. Then you can cancel and rebook if you see a lower rate closer to your travel dates.

2. Be as flexible as possible

Those with more schedule flexibility can save money on travel costs. If you’re able to take a vacation at a time when fewer people are also vacationing, you may pay cheaper rates. Other ways to save money by being flexible include visiting destinations during the off-season and flying in and out on weekdays instead of weekends. It pays to be flexible.

3. Use travel credit cards to earn rewards

You may want to consider adding one of the best travel rewards credit cards to your wallet to earn valuable travel rewards. When you accumulate enough rewards, you can redeem them for flights and hotel stays, which could help to make your vacation much more affordable.

It’s possible to get a deal on travel

If you’re taking a vacation soon and want to keep your travel spending to a minimum, consider checking the new money-saving feature that Google Flights recently introduced. Yes, travel can be expensive, but you can still get a deal.

Using tools like Google Flights and strategizing during the planning and booking process, you can plan an unforgettable getaway while continuing to work hard to reach your personal finance goals. Looking forward to a trip? Here are a few ways to save up for your next vacation.

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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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

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Mortgage forbearance allows you to stop making payments on your home temporarily without risking foreclosure. Read on to learn more. 

Most people sign a mortgage with every intention of paying that loan back. But sometimes, things happen.

You might lose your job and struggle to get another. Or, you might get sick or hurt and be forced to take a break from working as a result.

When financial hardship strikes, paying your bills can be tough. But if you don’t make your mortgage payments, you’ll put yourself at risk of foreclosure. That could mean losing your home and seeing your credit score take a massive dive.

A better alternative to foreclosure could be mortgage forbearance. But it’s important to understand exactly what you’re signing up for.

How mortgage forbearance works

When you put your mortgage into forbearance, you’re basically let off the hook from making payments during a specified period. Failing to make those payments won’t put you at risk of foreclosure because your mortgage lender has agreed to let your loan go into forbearance.

To be clear, though, the payments you don’t have to make during your forbearance period aren’t excused. Rather, they’re deferred, and you’ll have to make them later on. In some cases, you might even have to make up all the payments you missed while your loan was in forbearance as soon as that period is up.

The pros and cons of forbearance

Forbearance could help you avoid losing your home to foreclosure at a time when you can’t make payments. That’s the upside. But there are some downsides you should know about.

First, in some cases, you might have to make up all of your missed payments during forbearance as a single lump sum. The exact terms of a forbearance agreement can vary from one lender to another, though, so that won’t automatically be the case.

Another thing you should know is that interest on your mortgage will generally continue to accrue while your home loan is in forbearance. So even if you get plenty of time to make up those missed payments, you should expect to continue racking up interest.

Also, mortgage lenders have the right to report your forbearance to the credit bureaus. And if yours does, your credit score might take a hit.

However, that hit might pale in comparison to the damage a foreclosure has the potential to cause. A foreclosure will generally stay on your credit report for seven years, and it can serve as a major black mark during that time. So from a credit reporting standpoint, forbearance is a much better option.

Do you need to put your loan into forbearance?

When you’re experiencing financial difficulties, you may be inclined to ask to put your mortgage into forbearance. But it could pay to look at loan modification as an alternative to forbearance.

With loan modification, you change the terms of your mortgage rather than pause payments on it. Your lender might agree to loan modification if you can show that your income has declined, or that your financial situation has changed for the worse. And from there, your lender might change the terms of your loan so that instead of having to make a $1,000 monthly payment, you’re only on the hook for $600 (but for a longer period than your original mortgage term).

To be clear, under loan modification, you won’t have a portion of your mortgage forgiven (just like forbearance doesn’t forgive the payments you miss). But it might be a better bet because you’re not pausing payments you’ll have to make up later on. And it could be a better option from a credit reporting standpoint.

All told, mortgage forbearance could be a lifeline when your financial situation worsens suddenly. But if you’re going to go this route, make sure you fully understand the terms of your forbearance agreement so there are no unpleasant surprises.

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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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If you’re a new Costco member, you need to read this to learn some crucial shopping rules and about deals you may not know of. Here are the details. 

Did you just join Costco? If you did, you’ll want to make the most of your membership — and avoid costly mistakes — by reading these four crucial tips.

1. You’ll have to show your card (and maybe your ID) when shopping

Costco memberships come with one card for you, as well as a card for one household member. The cards aren’t transferable and the membership is not shareable. You cannot allow your friends to go shopping with your card without you there or give a card to someone who lives at a different address.

To make sure you’re not sharing your card inappropriately, you will have to show it when you enter the warehouse club and when you check out. Your card either needs to have an unobstructed full face photo on it or you must show a passport or ID issued by the U.S. government in order to be able to shop with it.

Costco has been cracking down recently on unauthorized membership sharing, so it’s really important to follow these requirements.

2. Shopping online may come at a higher cost

Online shopping is pretty convenient, but it’s not necessarily a good idea if you’re trying to get the most value from your Costco membership in order to keep more money in your checking account.

If you buy Costco products online, you’ll typically pay a higher price. This added cost is justified since the company has to make up for the shipping and handling expenses. The good news is, you’ll get a warning if you’re about to overspend as items available both online and in store will display a message on their product page indicating, “Item may be available in your local warehouse for a lower, non-delivered price.”

Just be aware that it’s not necessarily guaranteed that every item sold on the site will be sold in the warehouse. So if there’s something you’ve fallen in love with online, you might have to bite the bullet and pay extra if you can’t find it at a brick-and-mortar location.

3. You can’t use manufacturer coupons

If you’re a fan of clipping coupons from the Sunday paper or printing them out online, you may find yourself disappointed on your Costco visit. The store doesn’t accept manufacturer coupons.

The good news, though, is that Costco distributes its own discounts both via mail and in-store at several points during the year. Be sure to watch the mailers the store sends you if you want to get the best discounts.

You can also download the Costco app and redeem the warehouse club’s coupons directly from it. Once you do, click the “Savings Panel” to see the current promotions.

4. Costco deals go beyond what you see in store

You can get better bargains than you might think at Costco because the warehouse club offers discounts on things you might not expect. For example, discounted home insurance and discounted auto insurance are available for Costco members, with the warehouse club promising that the typical member saves an average of $595.80 on their auto coverage in the first year they switch.

Costco Pharmacy also provides low prices on generic meds and discounts on both human and pet medication. You can even work with a Costco partner to complete certain home improvement projects (like installing solar power or a generator) and get a 10% Costco shop card.

To find about all of the different unique benefits Costco membership comes with, be sure to check out Costco’s list of perks.

Now that you know these four key tips, you can make sure you’re shopping wisely, using your membership card within the rules, and are taking full advantage of the great deals Costco has to offer.

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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.Christy Bieber 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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Looking to stock up on some outdoor items? Read on to see what you can find at Costco. 

It’s hard to believe that we’re in the home stretch of summer, but alas, we’ve reached that point. You may be bemoaning the arrival of cooler weather and the inevitable inundation of pumpkin spice. But the good news is that it’s not too late to scoop up these Costco deals on items that are great for the outdoors.

1. Tommy Bahama Hi-Boy Beach Chair

You may only have a few more weeks to enjoy some time on the beach before the weather makes that notion less appealing. But now’s a good time to stock up on a new beach chair for the summer of 2024, or for different events outside of summer. Costco has this Tommy Bahama model available for $79.99. (And that’s the online price. You might reap even more savings by purchasing it at your local warehouse club store.)

The chair allows you to recline in seven different positions and features a foam headrest and cup holder. And if you have kids signed up to play fall sports, this chair could make it way more comfortable to watch and cheer from the sidelines.

2. Speedo Youth 1-piece Swimsuit

Swimsuits can be notoriously hard to find in the late spring and summer because people tend to scoop them off the shelves quickly. So now’s a good time to stock up on swimsuits for your kids for 2024. Right now, Costco is selling this Speedo swimsuit for $12.97. You can choose from a variety of patterns and sizes.

3. Andover 7-piece Woven Outdoor Patio Dining Set

Maybe your patio set has seen its share of wear and tear. Now could be a good time to buy a new one when the pressure’s off and you’re not about to host a series of summer barbecues. Costco is selling this set for $1,999.99. It includes six chairs and a table made of rust-free aluminum construction. The wicker chairs, meanwhile, are made to be stain- and mildew-resistant. And they won’t fade from sun exposure, either.

Now clearly, $1,999.99 is a lot of money to spend at once. So you’ll need to make sure this type of purchase is one you can afford to pay for outright. You don’t want to end up carrying a credit card balance when you may be able to wait on a new patio set until next summer if money is tight now.

4. Solar Escape UV Bucket Hat

If you spend time outdoors, then this hat may be worth scooping up now, because you might get great use out of it all year round. It costs $17.99 and offers the benefit of sun protection and adjustable sizing. It’s also made of moisture-wicking fabric, so whether you’re sitting on the beach or hiking in the fall, it shouldn’t make your head too sweaty.

5. SunVilla Dakota Fire Pit

Who says s’mores are only for summer? A new fire pit is something you might enjoy throughout the year. Costco is selling this SunVilla model for $249.99. It’s made of rust-free aluminum and comes with a cover so you can protect it from the elements. Pair this fire pit with a couple of the beach chairs mentioned above, and you’ve got the makings of a comfortable fall evening in your backyard.

Many people are sad to see summer coming to an end. But rest assured that Costco still has plenty of outdoor items that you may find useful outside of the summer months.

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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.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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