Money Management

Like the idea of getting free money to spend on Amazon? Read on for details on how to get it. 

Although it’s fairly easy to score your share of deals when shopping on Amazon, snagging a credit to use anywhere on the site isn’t always so simple. Sure, the online retail giant gives out credits toward digital content for being more flexible with your shipping and delivery dates. But those credits are generally limited to digital content alone.

Now, Amazon is giving away $15 credits to shoppers who load up on certain P&G products between now and the end of the year. Since you have plenty of time to capitalize on this promotion, it’s worth shopping strategically when you need to replenish your household essentials.

Get that free Amazon money while you can

A $15 credit on Amazon is, for many people, the same thing as free cash. That’s because you can buy almost anything you need on Amazon, from socks to batteries to toys for your kids.

Right now, the online retail giant is running a promotion where $60 worth of P&G products will leave you with $15 to spend as you wish on the site. The list of eligible items includes a lot of household essentials, like Bounty paper towels and Tide laundry detergent. It also includes many personal care items, like Pampers diapers and Gillette shaving cream. You can consult this list to see which specific items are eligible for the promotion.

Once you add enough eligible items to your Amazon cart and check out, the promotion will be applied automatically. And, you have until Dec. 31 to use your promotional credit.

However, you should know that you can only enjoy this promotion once between now and late December. In other words, let’s say you buy $60 worth of eligible P&G products three times between now and the end of the year. Unfortunately, you’ll only snag one $15 credit in the process.

A deal worth pursuing

Sometimes, consumers are tempted to spend extra money just to snag cash back. In fact, it’s somewhat common for people to charge needless expenses on a credit card in order to capitalize on a sign-up bonus, and that often does not make financial sense.

Forcing yourself to spend an additional $500 to meet a sign-up bonus threshold leaves you out money, not up money, if that bonus amounts to a $250 payday. (Just do the math — you’re down $250 all in).

But this Amazon promotion actually does make sense if you use the products that are eligible for it. Not only are they everyday products, but many of them don’t come with an expiration date. Buying extra paper towels, for example, is a pretty low-risk proposition because you’re apt to need them eventually, and they certainly won’t go bad on you anytime soon.

If you’re unable to capitalize on this particular Amazon promotion (say, you just don’t use the products in question), it does pay to be on the lookout for future deals along these lines. Chances are, another promotion will become available that might make more sense for you to go after.

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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. Maurie Backman has positions in Amazon.com. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.

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I recently backed my car into a curb and the damage ended up costing me $1,000. But, learn why I didn’t have to go into debt to pay for it. 

Surprise expenses can happen at any time. Although I try to plan for as many costs as I can so I don’t end up with a bigger credit card bill than I can pay, it’s absolutely impossible to plan for every single thing that can go wrong.

In fact, my recent experience shows that even a minor incident on an ordinary day could lead to a big expense. Fortunately, because I have an emergency fund in a high-yield savings account, the incident didn’t turn into a financial disaster — although it easily could have.

Here’s what happened.

How a minor mishap ended up with big costs

I recently had a very unfortunate minor car accident. I was driving my vehicle and got distracted talking to my husband when I was backing up and I hit a curb.

This shouldn’t have been a big deal, but the curb was high and it hit my tailpipe in the wrong way and bent it. There was some other part attached to the tailpipe and, as a result, the car dealer ended up charging me just over $1,000 to replace the part so my car would be in good working order again.

This wasn’t a big accident, and it wasn’t something I had any way of anticipating could possibly happen. But, my car wasn’t safe to drive after hitting that curb — and I needed the vehicle to be able to get my kids to school and activities.

I would not have been able to wait weeks or months to get the car fixed until I saved up the money — and since this came out of nowhere, it wasn’t something I could have budgeted for in my monthly planning. It also wasn’t really something I could have avoided (of course, I could have been a better driver, but this kind of thing can happen to anyone as you can’t be perfect all the time).

Fortunately, I did not end up having to borrow or go without a vehicle — thanks to my emergency fund.

An emergency fund exists to help you face unexpected issues

This wasn’t the first time I’ve had to tap my emergency fund for an unexpected expense — and I’m not the only one. Pew Trusts found as many as 6 in 10 households experienced financial shocks over a 12-month period, with 30% having to pay out for unexpected car repairs (like I did). Other common shocks included major home repairs, hospital visits, pay cuts, or divorce, separation, or becoming widowed.

The reality is, without money in a savings account, a one-time disaster that comes with a big price tag can have a devastating impact on your financial stability. If you have to go into debt to deal with your emergency, the monthly payments you have to make will end up stretching your budget later — and increasing the chances of taking on additional debt.

To make sure you’re ready if you hit a curb, or experience some other surprise costs, start putting money aside in your emergency fund today. You’ll be glad you did when that unexpected expense hits your household.

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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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Scrub Daddy sponges make cleaning more fun, but they’re expensive at some retailers. Discover how much money you can save by getting them at Costco. 

Maybe you’re like me and don’t particularly enjoy cleaning the bathroom. Perhaps a smiley face sponge would motivate you to clean more often? Scrub Daddy sponges, which are scratch-free, texture-changing sponges shaped like a smiley face, are a popular household cleaning item. These sponges, which are frequently featured in TikTok videos, are being sold at some Costco clubs. If you’re a Costco member, you can get these happy sponges for an affordable price.

Some shoppers are buying Scrub Daddy sponges at Costco

Costco has a lot of great buys. One of the most recent finds that Costco members are raving about is Scrub Daddy sponges. Costco is selling an eight-pack of Scrub Daddy Colors, which feature smiley sponges in multiple colors, for around $15.99 per pack.

While that may seem like a lot of money to spend on cleaning items, it’s a much cheaper price than other retailers. Even a small discount can improve your personal finances. To give you a better idea of the potential savings, Scrub Daddy sells its Scrub Daddy Colors sponges in a three-pack for $9.99 on its website, meaning you’d be paying $3.33 per sponge.

If your local club sells the eight-pack of Scrub Daddy Colors for $15.99, you’d pay about $2 per sponge — not a bad price to feel a little extra joy while cleaning. The sponges might not do the cleaning for you, but they may help to brighten your day. If you have a Costco membership, you may want to see if your local club has these sponges available for sale.

Earn rewards for recycling your used Scrub Daddy sponges

If you have a collection of Scrub Daddy sponges reaching the end of their life, you can return them to Scrub Daddy to be recycled through the company’s Recycling Rewards program. This way, you’ll earn credits to get a discount on future orders. You’ll earn a $2 credit for every used sponge you mail back to Scrub Daddy.

Receiving rewards are valid for one year beginning on the date of disbursement. There’s no limit to how many used sponges you can recycle. However, you can only include a maximum of five products per recycling return form. You can track your credits in your online account. Order minimums apply when using credits at checkout.

Here’s a closer look at the credits that can be used depending on the order total:

$2 credit on carts totaling $10 or more$4 credit on purchases totaling $16 or more$6 credit on carts totaling $20 or more$8 credit on purchases totaling $23 or more$10 credit on carts totaling $25 or more

When it’s time to order new Scrub Daddy sponges, you can use your credits to save. Before entering your credit card details, check to see if you have any rewards credits you need to use.

How to sign up for Scrub Daddy’s Recycling Rewards program

The Scrub Daddy Recycling Rewards program is free to join. Follow these steps to sign up and send your used sponges to Scrub Daddy to earn credits:

Visit The Smile Shop and create a free account.Click the “Recycling Rewards” tab to start a return.Complete the Recycling Return Form.Mail your used sponges to the following address: Scrub Daddy Inc., Attn: Recycling Rewards, Order ID #, 1700 Suckle Hwy., Pennsauken, NJ 08110.Scrub Daddy will notify you when your submission has been received and approved and when your online account is credited.

Costco can help you keep your house clean for less money

Costco sells various products, including groceries, clothing, and electronics. You can also buy affordable cleaning supplies at your local club. A Costco membership can help you keep more money in your checking account while helping you stay on top of your household cleaning chores. Don’t miss out on getting a significant discount on Scrub Daddy sponges at Costco.

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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.Natasha Gabrielle 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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The Fed’s interest rate hikes have been good for CD rates. Learn why a falling inflation rate could change that. 

For decades, certificates of deposit (CDs) were nothing to gush over — just a safe place to park some cash without enduring the volatility of stock markets. And while the security aspect of CDs hasn’t changed, their APYs in 2023 are no longer laughable.

Right now, many CD rates are between 4.25% and 5.25%. Much of that high interest has to do with the Federal Reserve’s relentless campaign against high inflation, which has pushed the federal funds rate to a range of 5% to 5.25%. Though the funds rate doesn’t decide CD rates directly, banks tend to pay more to depositors when the funds rate is higher.

Inflation remains a problem for the Fed, but recent CPI data has been encouraging. The most recent report from June 13 showed that the year-over-year increase in prices was 4% in May, down from 4.9% in April. Though the Fed wants to bring the inflation rate to 2%, May’s CPI reading indicates we’re getting there, however slowly.

But for prospective CD holders, here’s a question to ask — if inflation continues to fall, what does that mean for CDs? In general, I think it’s good news for current and recent CD holders, but for those who are waiting for CD rates to increase substantially, I think there could be disappointment on the horizon.

CD rates outpace inflation

With the federal funds rate between 5% and 5.25%, the majority of CD rates have surpassed inflation.

Take, for example, Bread Savings CDs, which have some of the highest APYs on certificates of deposit. As of June 27, 1-year Bread CDs, which have a minimum deposit of $1,500, are boasting APYs of 5.25%. Even its 5-year CD is above inflation at 4.25%. That’s significant, because long-term CD rates currently have lower rates than short-term ones, simply because banks are expecting the Fed to lower its federal funds rate sometime in the future. Even so, long-term Bread CDs are outpacing May’s CPI reading of 4%.

One caveat to keep in mind: Your CD’s actual APY will depend on your federal tax rate, as interest in a CD is taxed as ordinary income in the year it’s earned, unless it’s held within a tax-advantaged account such as an IRA. Even so, many of the best CD rates could still earn above the rate of inflation even after taxes.

If the Fed successfully corrals inflation to its targeted goal of 2%, then a long-term CD with an APY of 4.25% could be a decent hedge against inflation at that time. That would make current rates on 2- to 5-year CDs something to get excited about, especially if you have savings you won’t need to use within that period.

The party could be coming to an end

Let’s be clear: CD rates won’t stay this high forever. While the Fed has indicated it may hike the funds rate again before the end of this campaign, its end goal is to eventually reverse rate hikes to a range more conducive to economic growth. When it does reverse course, banks will likely match the Fed’s actions and lower APYs on its CDs.

But not even the Fed knows when it will cut rates. Personally, I thought we’d see at least one rate cut in 2023, but now I’m second-guessing myself. Jerome Powell said the Fed still has a “long way to go” to get inflation down to 2% and even hinted it will hike rates again before the end of the year.

Those investors interested in CDs should keep an eye on the June 2023 CPI report, which is scheduled to be released on July 12. Ultimately, we know the CD party is coming to an end. Whether it’s a weekend party, however, or a Friday night, the June 2023 CPI report might give us some indication.

If you know a CD is the right savings vehicle for you, I would take advantage of today’s CDs regardless. A short-term CD, such as a 3- or 6-month term, could be a viable solution, as it minimizes how long your money is locked up but still captures a rate that will be higher than inflation. Since we don’t know what the Fed’s decision will be, alternatively, you could look into a high-yield savings account, whose APY doesn’t have a fixed term like a CD but could still help you earn above inflation while you await the Fed’s next steps.

These savings accounts are FDIC insured and could earn you 11x 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 11x 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.The Motley Fool has positions in and recommends Target. The Motley Fool has a disclosure policy.

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Sam’s Club and Costco have similar return policies, but one is slightly better. Read on to learn which warehouse club takes the lead. 

Costco and Sam’s Club aren’t worlds apart. Both warehouse clubs can help you manage your personal finances by offering you good deals, discounts when you buy in bulk, and an end to “buyer’s remorse” with super flexible return policies.

However, if we’re going to be nit-picky, then Costco’s return policy is slightly better than Sam’s Club, mainly because it allows you to return a few items that Sam’s Club doesn’t. The race is uber close, however, so let’s look at both clubs’ return policies more closely and see where Costco is slightly more flexible.

What are the clubs’ return policies?

First, let’s start on some common ground. Both clubs have a 100% satisfaction guarantee policy, which lets you return most items at any time for a full refund with few exceptions. This includes your membership: If you’re not satisfied with a Sam’s Club or Costco membership, you can get your money back.

Which club has fewer exclusions?

Costco and Sam’s Club exclude certain items from its “full refund” policy. As far as which big-box retailer excludes less, Costco has a slight lead.

Both clubs limit refunds on electronics and appliances to 90 days. But Costco has a leg-up on Sam’s Club in that it also lets you return cellphones within 90 days (unless stated differently on your carrier contract), while Sam’s Club gives you 14 days to return a phone.

As far as full exclusions go, Sam’s Club’s website lists numerous items you cannot return, such as gift cards, prepaid cards, tickets, custom-made items (like a coffee mug with your cat’s face on it), and prescriptions. Costco also excludes a number of these items, such as custom-made products, prescriptions, and airline or entertainment tickets. However, it doesn’t have a company-wide exclusion of third-party gift cards and may leave it up to the warehouse location itself to decide whether to refund you.

Costco also has a slight advantage on hearing aid returns. The warehouse club will give you a 180-day trial period for hearing aids. Sam’s Club, on the other hand, will give you 90 days, unless there’s a warranty that’s longer.

Finally, neither club guarantees you can return alcohol or cigarettes. Since many states prohibit consumers from returning alcohol (since a return is basically a sale and you would need a liquor license to do that), the companies leave it up to the warehouse to decide. The same applies to batteries and tires, which may have a product-specific return policy.

Do you need a receipt to make returns?

Costco warehouses will accept your returns with or without a receipt. As long as you purchased the item with your membership card, Costco employees can find it using your ID or number. Sam’s Club can also process returns without a receipt, though, as it states on its website, the warehouse “prefers” you have one and will “do its best” to process a return without it.

So which club has the better return policy?

As you can see, the race is close. Both Costco and Sam’s Club allow near unlimited returns on most items, with few exceptions. However, when we get down to the nitty-gritty, Costco has a slightly better return policy for cellphones, gift cards, and hearing aids.

As a side note, Costco also has far more stories of bizarre items it has allowed its members to return. Such tales are woven from the threads of Reddit (so take them with a grain of salt), but supposedly Costco has let people return empty cases of wine, a 13-year-old fish, and a Christmas tree — in January. I’m not saying that should sway your decision, but if you often find yourself midway through a package of cheese and want to return it, Costco might be your 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.The Motley Fool has positions in and recommends Costco Wholesale and Uber Technologies. The Motley Fool has a disclosure policy.

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