Money Management

Certificates of deposit (CDs) are a way to keep your money safe and earn some interest on it. Keep reading to learn if you can have as many as you want. 

It’s never a bad time to have money saved — for example, an emergency fund can keep your personal finances afloat, saving you from going into debt on unplanned expenses. But there is one silver lining to the higher inflation we’ve been living with in the wake of COVID-19 and the resulting Federal Reserve rate hikes: If you have money in the bank, you have excellent opportunities to earn a decent rate of interest on it.

We’ve seen higher APYs on savings accounts and money market accounts, and both of these account types are certainly worth your attention. But if you have a chunk of money saved for the future that you don’t want to invest (perhaps it’ll be funding a house purchase or a wedding in the next year or so), you should consider a certificate of deposit (CD).

In exchange for locking up your money for a period (ranging from a few months to several years), you’ll earn a steady and fixed rate of interest on it. Sounds great, right? And there’s no rule that limits how many CDs you can open, either. You can spread your money out among multiple CDs and benefit in different ways. But not so fast — having multiple CDs has some potential downsides, too. Let’s take a look at why you might want multiple CDs and why you might not.

Advantages of multiple CDs

Since you’re not limited in how many CDs you can have, you might want to try CD laddering. In a nutshell, this savings technique will have you putting money into multiple CDs of differing term lengths. For example, if you have $5,000 for CDs, you might opt to put:

$1,000 into a 1-year CD$1,000 into a 2-year CD$1,000 into a 3-year CD$1,000 into a 4-year CDAnd $1,000 into a 5-year CD

The beauty of CD laddering is that every year, some of your money becomes available to withdraw or to reinvest in a new CD.

If you open multiple CDs, you can also take advantage of different rates and terms available from different banks. Maybe your regular bank offers decent rates on 1-year CDs, but an online-only bank has great rates on 2-year and 5-year CDs. If you want money available at different intervals, you can have the best of all worlds.

Finally, if you have a lot of money to put into CDs (perhaps not super likely for most people, but maybe you just sold your house at a generous profit), you might be concerned about exceeding FDIC insurance limits, which covers up to $250,000 per eligible account ($500,000 per joint account) if the bank fails. If you open CDs at different banks, you won’t run the risk of hitting those limits and potentially losing some of your money in the event of a bank failure.

Disadvantages of multiple CDs

Having multiple CDs can come with a few downsides, though. For one, you’ll have more accounts to keep track of. If all your CDs are opened with just one or two banks, this might not be a hardship for you. But if you want to take advantage of a variety of CD terms and interest rates, you might have a lot of passwords to maintain (and just because CDs are kind of “set it and forget it” doesn’t mean you shouldn’t check up on your money in one every once in a while).

Some CD accounts might require a high minimum deposit, which would mean you’d need quite a lot of money to open a bunch of them at once. So wanting to open multiple CDs might limit you to choosing accounts from only the banks that offer lower minimum deposits.

The other potential problem with multiple CD accounts is that you could open yourself up to paying penalties to withdraw money early if you tie up all your savings in CDs. Remember our emergency fund example? Don’t put that into a CD — you want that money to be available for you to access at a moment’s notice, with no fees, because it’s specifically for unplanned expenses that could pop up at any time.

CDs are a nice way to keep a chunk of money safe for a certain period, and as you can see, having more than one has the potential to do good for your finances.

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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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You applied for a credit card and were turned down — game over? Maybe not. Keep reading to learn what to do now. 

In a perfect world, you’d be approved for every credit card you apply for. Unfortunately, this is not a perfect world — and many of us have felt the sting of rejection from a credit card issuer.

You might think that if you get a no, it’s the end of the road. However, you do have an option in this situation if you still want the card: You can call the issuer’s reconsideration line. Let’s take a look at a few possible reasons you were rejected and see if calling the reconsideration line can help you get a second chance at that credit card.

Why was I rejected for a credit card?

Here are a few common reasons a credit card issuer might decline your application:

Your credit score wasn’t high enough for the card: Many credit cards are intended for consumers with a credit score in a certain range. If you applied for one that requires good to excellent credit, and your score is in the fair range (which is 580–669 for FICO® Scores), you may not qualify.You have too much existing debt: Credit card issuers consider your existing debt payments when approving you for a credit card. If you have too much revolving debt, a card issuer may doubt your ability to keep up with payments on a new card.Your income is insufficient or irregular: If you’re a lower earner, unemployed, or only intermittently employed, you might be rejected.You don’t have a long enough credit history: If you’re young or new to credit, you might not have enough credit history for a credit card issuer to determine if you’d reliably make your payments.You have too many recent credit inquiries: Every time you apply for a credit card or loan, the issuer does a hard credit inquiry, which can impact your credit score. Too many in a short period could indicate that you’re having financial trouble and need more credit available to you to manage your finances.

What can I do to be reconsidered for the credit card?

Good news! You can call the credit card company’s reconsideration line. This will be a phone number to connect you with a representative to discuss your application and plead your case. You may want to wait until you receive your letter in the mail explaining why you were rejected so you can best address the reason. Otherwise, you should be able to find out from the representative why your application was denied.

Here’s the best way to approach that conversation:

Now is the time to really turn on the charm and be polite. Remember, the person on the other end of the line is a human, and chances are, they have to deal with a lot of rude callers every day.Explain why you’d be a good cardholder — meaning, you use your credit cards regularly, pay off your balances on time, and only use credit to make purchases you can afford. If you. have a good credit score, bring that up, too.Ask to be reconsidered for the card in question. It’s a good move to mention how excited you are about this card in particular, and maybe bring up a few features you like. Don’t mention the welcome bonus, because credit card issuers don’t love it when consumers sign up for cards, get a welcome bonus, and then dump the card. So avoid raising alarm bells in this regard.Bring up the elephant in the room, and either provide an explanation or make a suggestion for how you could be approved. If you were turned down because of a delinquency on your credit report, explain what happened. If you already have several cards with that issuer and they have high limits, ask that a portion of your existing credit limit be transferred to the new card.

You still may not be approved even after pouring your heart out to the card issuer. If that happens, it’s definitely disappointing, but it’s not the end of the world. Chances are, this won’t be your last opportunity to get a new credit card, and if the reason you were turned down is your credit score or existing debt, you can work on them for the future.

Reconsideration line numbers for major card issuers

Here are the numbers to call to have a credit card application reconsidered.

If you don’t get that particular credit card at this time, that’s okay. Take the information you’ve been given about your rejection and make lemonade out of those lemons.

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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.Bank of America is an advertising partner of The Ascent, a Motley Fool company. 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. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Bank of America and JPMorgan Chase. The Motley Fool recommends Discover Financial Services and U.S. Bancorp. The Motley Fool has a disclosure policy.

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Are you a Costco member? You can use your card to shop in the United States and abroad. Find out why you may want to shop at an international Costco store. 

Many people who live in the United States are Costco members. The warehouse club helps members save on groceries, household essentials, electronics, clothes, and more. By getting a deal on these items, members are able to keep more money in their checking accounts.

If you have a trip planned outside of the country or are planning to move outside of the United States, you may wonder if you can use your Costco membership abroad. The answer is yes!

A Costco membership is valid worldwide

So, can you use your Costco membership in other countries? Yes, you can. Costco outlines its member privileges and conditions on its website. The retailer notes that your Costco membership is valid at any Costco location worldwide.

If you move out of the country or travel internationally, you can bring your membership card and shop at Costco. The company has more than 850 locations across the globe. In addition to the United States and Puerto Rico, Costco has clubs in the following places:

CanadaUnited KingdomTaiwanSouth KoreaJapanAustraliaMexicoSpainIcelandFranceChinaNew ZealandSweden

A Costco membership costs between $60 to $120 annually, depending on which membership type you choose. Having the option to use your membership at any Costco location worldwide makes your membership even more valuable. Plus, if you travel outside the country often, you can save even more money as you shop with this perk.

Why is shopping at Costco abroad worth it?

You may wonder if shopping at an international Costco location is worthwhile. If you’re near a Costco warehouse club while abroad, putting your membership to use can be beneficial. Here are a few reasons why you may want to shop at Costco while outside of the country.

Try new food court items: Costco is well known for its affordable food court finds! You can discover delicious global eats by visiting a club outside of the United States. Don’t miss the Bulgogi Pizza in South Korea, the cottage pie in Scotland, and the ham croquettes in Spain.Save money on vacation: If you’re visiting another country for more than a few days, it may make sense to stop at Costco to load up on groceries and other essentials. Travel costs can add up fast, so any money saved on trip expenses can be a win for your wallet.Spend less while adjusting to your new home: If you plan to move outside of the United States and have a Costco club near your new home, the savings can feel like an extra win. Living in another country can be an adjustment, and saving money as you purchase essentials for your new home can help ease additional financial stress while you settle in.

Costco can help you keep more money in your pocket

A Costco membership can be a win for your wallet. Saving money on essentials can help you avoid a costly credit card bill. If you have a Costco membership or are thinking of joining, remember that you can use your membership perks outside of the country, too. Whether traveling or moving abroad, your Costco card can help you waste less money. For additional ways to save money, check out our personal finance resources.

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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. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Some people hold off on investing during bear markets. Discover why you should continue to follow your normal investing strategy when the market is down. 

A volatile stock market can be worrisome, especially for new investors. When the value of your portfolio has dropped, you may be unsure about continuing to put in more money. You might even want to cut bait and sell your investments entirely.

While this is a normal reaction to a down market, it’s one that every investor needs to learn how to get past. Experienced investors know that it’s important to continue investing when the market is down. In fact, it’s one of the best money moves you can make.

Why you should invest when the market is down

Stocks, and the stock market as a whole, go through ups and downs. These are often due to the economy and not necessarily related to a stock’s underlying value.

For example, during the Great Recession, stock prices dropped by about 50% between late 2007 and early 2009. That’s a stressful situation for any investor. But many of those stocks were still quality investments that recovered and became even more valuable. The investors who buy during down periods are able to get a lower price, and eventually make even more money if the stock recovers.

Ramit Sethi, who stars in How to Get Rich on Netflix, recently shared a smart reason why you should continue to invest when the market is down. As he put it, “When the price of something you want goes down…you’re happy about it!” If a product you love went on sale, you’d probably take the opportunity to buy it at that lower price.

It works the same way with investing in stocks. If you believe a stock is a good long-term investment, you should invest in it regularly. If the price goes down, don’t look at it as a bad thing. Look at it as an opportunity to get more for your money.

Even if it feels risky, the reality is that the most successful investors end up making money by investing during down markets. What you shouldn’t do is stop investing. If you only invest when prices are going up, you’ll make less money overall. And you definitely shouldn’t panic sell your investments. Once you sell, you lock in your losses, and you’ll miss out if those investments bounce back.

How to choose quality long-term investments

The key to making this work is to choose investments that you believe will be successful over the long haul. That way, you can continue to invest with confidence no matter what the market does.

Despite what some people believe, your investments don’t need to be individual stocks that you pick yourself. They certainly can be, if you want to build your own portfolio. But there’s also a much simpler option that can be just as effective — investment funds. These put your money in a large number of stocks, bonds, or both, giving you a diverse portfolio in as little as one investment. Options include:

Exchange-traded funds (ETFs)Mutual fundsTarget date funds

To give you a firsthand example, I’ve been investing in a total stock market mutual fund for years. It distributes my investment across the entire U.S. stock market. During the time I’ve invested in it, the price has fluctuated quite a bit.

No matter the price, I’ve put money in it every month. I know that historically, the stock market has produced an average annual return of about 10% (before inflation, that is). Even though nothing’s guaranteed with investing, I’m reasonably confident that over the long term, the U.S. stock market will keep going up. So, when the market is down, I just look at it like I’m getting more for my money the next time I invest.

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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. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Target. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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I love using Amazon’s Subscribe and Save service for two key reasons. Learn what they are and how they can help you too. 

For the past several years, I’ve been buying many items from Amazon’s Subscribe and Save program. In fact, a hefty number of charges go on my credit card each month when my Subscribe and Save items ship.

There are two reasons why I really love this service and use it regularly.

1. It’s convenient to get some items auto-delivered

There are many items I need on a recurring basis, including everything from garbage bags to toilet paper to vitamins for my kids. Amazon offers most of these items through Subscribe and Save, including supplements, baby products, pet items, and beauty and personal care items

It’s much more convenient to have these items show up at my house at a time when they’re running low rather than having to go and buy them once I’ve discovered I’m completely out. Plus, because I use Subscribe and Save, I don’t have to stress about remembering to pick up essential purchases — or risk getting stuck without something like diapers at a critical moment after the fact that we were almost out slipped my mind.

If you find yourself making the same purchases on a regular schedule (or even just a semi-regular schedule, as your delivery schedule can easily be adjusted), then Amazon Subscribe and Save may be a convenient way to get them. This can reduce some of your mental load, which is invisible labor you do when you have to remember all of the things that help keep your household running.

Keep a few months’ worth of grocery lists (whether you write them on your phone or on a pad of paper) and review them. If you notice that every four weeks you have to buy a new box of tea, or every six weeks you have to grab a new pasta sauce, these items would be good candidates for Subscribe and Save.

2. I can qualify for extra discounts with Amazon Subscribe and Save

The other big reason I love Subscribe and Save is because it allows me to keep more money in my bank account. That’s because Amazon provides a 15% discount with automatic deliveries if you buy at least five products.

Since there are so many things I like to buy, it’s easy to qualify for this discount and it gives my personal finances an extra boost. For example, I can get an 18-pack of my favorite Bai drink for $21.52 after my Subscribe and Save Discount is applied, as opposed to buying three six-packs from Walmart for $25.44. And this is just one of many products I save a few dollars on each month.

To make sure the item is really cheaper with Subscribe and Save, you’ll want to compare your post-discount price with what you’d pay in store.

If you find you can save money and reduce your stress, you may decide that you want to take advantage of Amazon’s Subscribe and Save program as well.

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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.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com and Walmart. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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