Money Management

All banks could trim fees if they wanted to. 

OneUnited Bank is not only the largest Black-owned bank in the U.S., but it’s also one of the most innovative. When the bank’s customers began to ask for more access and control of their money, bank leadership responded.

Teri Williams, President and COO of OneUnited, explains, “We’re really low to the ground. When customers tell us what they want, we try to figure out creative ways to meet their needs.”

The result of that creative thinking helped pave the way for the bank’s new Empowerment Network, with more surcharge-free ATMs than any other bank in the country.

What customers want

OneUnited customers live primarily in urban communities, areas of the city that rarely become home to a new bank.

According to Williams, even if a member of the community keeps their money with a national bank, there’s a good chance they’ll have to go out of their way to use that bank’s ATM. Unless they’re willing to go out of their way, they’re likely to get stuck with an out-of-network surcharge.

“It drives up the community’s cost of banking,” Williams said.

When gaining access to their money began to feel problematic, OneUnited customers made it known to the powers that be.

Two surprise partners

OneUnited now has over 100,000 surcharge-free ATMs, including those at all Chase Bank and Citibank branches.

“I have to give them credit,” Williams said of the two big banks. “They’ve been reaching out to Black banks to learn how they can partner with us.”

OneUnited went on to expand its ATM network by allowing customers to make surcharge-free withdrawals from ATMs in retailers such as 7-Eleven, Costco, CVS, Target, and Walgreens.

The ability to withdraw money free of charge while shopping at Target or stopping by Walgreens for a prescription helps OneUnited customers hang on to their hard-earned money.

Answering another complaint

In response to customers asking OneUnited to help them gain greater control over their bank accounts, the bank launched OneUnited Card Command. Now, customers can instantly turn off and on their bank debit card. They also receive real-time transaction notifications, add their debit card to their digital wallet, create travel plans before leaving home, and set spending limits to control their budget.

Williams said, “Frankly, We’re elevating the BankBlack Movement by offering best-in-class services and state-of-the-art technology to better meet customer needs.”

How to save money yourself

Out-of-network ATM fees run, on average, between $2 and $3 per use. While that does not sound like a fortune, it’s a painful reality for anyone living paycheck-to-paycheck. And according to Vox, it’s profitable for banks to charge fees. Due to bank fees, American banks raked in $279.1 billion in 2021. That’s $132 billion more than the year before.

Here are two ways to find a bank that will allow you to pay less and keep more money in your account.

Bank with OneUnited (or a bank of its caliber). You don’t have to be a minority to become part of a minority-owned bank.Go over your last bank statement with a fine-toothed comb, looking for fees. If your bank deducted fees of any kind, consider closing that account and opening a new one at another bank or credit union. Many credit unions charge no monthly maintenance fee and also provide a network of available ATMs through partner credit unions.

The challenge of letting go

The fact that fees earn billions for banks each year makes offering a huge network of surcharge-free ATMs a bit of a financial sacrifice.

Asked if OneUnited is going to miss the income it used to pull in thanks to ATM fees, Williams answered, “It’s costing us. There’s no question. But we recognize that it’s important to our community to have access. The benefit to our customers outweighs the cost.”

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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.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. Dana George 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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Airbnb’s new pricing feature will allow travelers to see total home rental prices faster. 

Travel costs can add up quickly. When planning trips, many people compare the price of home rentals and hotels to find the most affordable place to stay. Airbnb recently announced a new search feature that will make it easier for travelers to compare rental prices. Here’s how to sort Airbnb rentals by total price so you can stay on budget during your next vacation.

Say goodbye to surprise fees

If you prefer more space and privacy when traveling, you might consider renting an apartment or home instead of a hotel room. In some cases, vacation rentals can be cheaper than hotels. But it’s important to research prices before booking to ensure that the home rental you book fits your vacation budget. Otherwise, you may feel stressed about money while on your trip.

Until recently, it wasn’t easy to budget total costs on Airbnb just by doing a quick search. While the search tool would show rental prices, extra fees like cleaning and service fees weren’t factored in and weren’t shown until users clicked on the property details. In many cases, a home rental was much more expensive than it first appeared.

Airbnb wants to make it easier for travelers to compare rental properties so they don’t overspend. The brand announced that beginning in December 2022, it would begin to roll out a new total price display feature to make it easier to compare prices between properties.

This feature will be made available in countries without existing price display requirements. Total prices will include all fees before taxes and will show in search results on the map, filter, and listing page. With this new feature, search rankings will also prioritize total price.

How to activate total pricing on Airbnb

You’ll need to toggle this new feature to see total pricing on Airbnb. At the top of the website, Airbnb has a notice that says, “Show total prices up front,” with a link to learn more. You’ll be shown more details if you click “Learn more.” By clicking “Try it now,” you can activate this feature. If you’re not interested at this time, you can instead click “Maybe later.”

It’s easy to enable the total pricing view. Since this feature is being rolled out to users over time, you may not see the option immediately. Like before, Airbnb users will continue to be shown a full breakdown of each rental’s cost, including fees, by clicking on each property’s page. Total pricing can be reviewed and confirmed before finalizing payment.

This new feature could help you save money on travel costs

Before you book your next vacation rental, make sure to toggle this feature so you can quickly find the best rental for your needs. It’ll be faster and easier for users to find properties that meet their search criteria and budget.

Most travelers will likely find it easier to find affordable places to stay with this upgrade. It’s a win-win situation, since you can save money and time. You should always consider your personal finance situation when planning a trip.

Having a vacation budget and saving money throughout the year are two ways to prepare for future travel expenses before you jet off. It’s also not a bad idea to pay for your bookings using travel rewards credit cards to earn valuable rewards on your spending.

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It wasn’t something I was willing to do, even though many buyers do. 

Back in 2009, my husband and I made the decision to put our starter home on the market and look for a new home to buy. At the time, home prices were starting to come down, and we wanted to sell our home before the market really crashed. We also wanted to lock in a mortgage at a time when borrowing rates were reasonable, which they were at the time.

Of course, selling our home meant having to find a new one to live in. And that wasn’t the easiest thing.

Although housing inventory at that time was more robust than it’s been over the past couple of years, there weren’t that many houses for sale in the neighborhoods we wanted. Plus, we were eager to stick to a certain price range, which limited us further. As such, we had to make some compromises in the course of our house hunting.

But one thing we didn’t do during our home search was engage in a bidding war with other buyers. Here’s why I refused to go that route.

1. I didn’t want to overpay

Bidding wars often result in you paying above a home’s asking price. That’s something I wasn’t interested in doing.

My husband and I were really invested in not only staying within our price range for a new home, but sticking to that lower end. Avoiding bidding wars helped us achieve that objective and avoid paying a price we weren’t comfortable or happy with.

2. I didn’t want to get stuck in limbo

Sometimes, bidding wars can drag on for days. Other times, a bidding war can last weeks.

My husband and I, meanwhile, had sold our home before finding a replacement one to make an offer on. So we couldn’t afford to get stuck in bidding war limbo. Instead, we wanted our offers responded to within 24 hours — or we geared up to walk away.

3. I didn’t want the stress

Bidding wars can be very stressful. Not only are you competing with at least one other buyer (sometimes more), but it can also be hard to know what purchase price you’ll end up with.

Meanwhile, buying a home can be a harrowing process, especially when the clock is ticking because the home you’re selling is under contract and you need a new roof over your head. So I didn’t want to make the process even more stressful by subjecting myself to bidding wars.

The right call given the housing market at hand

In housing markets where inventory is tight, sometimes, bidding wars can be unavoidable. Such was largely the case from mid-2020 through mid-2022 in particular.

But in my case, steering clear of a bidding war was possible. And that’s why I made it clear to my real estate agent that a bidding war was a path I didn’t want to go down. Thankfully, she heard me loud and clear, and at no point during my home search did I have to go back and forth in an attempt to beat out a competing buyer.

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It’s something to think about at a time when just about everything is going. 

Many people rely on Amazon Prime for everything from gifts to school supplies to household essentials. But a Prime membership, though valuable in its own right, isn’t cheap these days.

In 2022, Amazon raised the cost of an annual Prime membership from $119 to $139. And that bump was enough to cause some members to jump ship.

If you stuck with Amazon through its most recent fee hike, you may be maxed out on what you’re willing to pay for a Prime membership. But how soon will you face another fee hike again? Will Amazon seek to raise its prices in 2023?

A possibility to brace for

Many retailers have seen their margins get tighter as a result of inflation. And there’s no reason to think that Amazon is an exception. As such, it’s conceivable that the online retail giant might seek to raise the cost of a Prime membership despite having recently gone that same route.

That said, a fee hike two years in a row isn’t likely to sit well with Prime members. And Amazon knows full well that its Prime program isn’t the only service consumers can sign up for that comes with perks like free shipping.

Walmart+, for example, offers that same benefit — and at a lower price point than a current Prime membership. So it’s in Amazon’s best interest to try to retain Prime members, rather than drive them away with fee hikes.

Expect the cost of Prime to rise eventually

Amazon may not increase the cost of a Prime membership in 2023 due to having done so in 2022. But that doesn’t mean the cost of Prime won’t increase at some point. If it doesn’t happen this year, for example, it could go up in 2024. That’s why it’s a good idea to continuously assess your Prime membership and make sure you’re really getting great value out of it.

If you use Amazon Prime multiple times a week to order goods at a discount, then chances are, a Prime membership will be worth keeping even if it costs you $10, $15, or $20 more than it does today. But if you only place Prime orders on occasion, then it may not be worth it to keep your membership — especially if that becomes a more expensive prospect.

In fact, you actually shouldn’t wait for an Amazon Prime fee hike to evaluate your membership. Rather, ask yourself every few months if Prime is worth paying for. If not, cancel and use that money for something else, whether it’s paying for groceries or padding your savings account.

There are lots of benefits Amazon Prime members get to enjoy, from the option to try on apparel at no cost to loads of digital content. But if you find that you’re just not taking advantage of them, then there’s no sense in spending money on something that only offers you mediocre value.

Amazon might actually keep the cost of an annual Prime membership at $139 for quite some time. But that doesn’t automatically make it a good deal for you.

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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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Even consumers with health insurance are spending a small fortune on medical care. 

Workers who are self-employed, or who don’t have access to a health insurance plan through an employer, often find themselves paying a small fortune of money to put coverage in place. And when we factor in the cost of not just health insurance premiums, but also, copays, coinsurance, and deductibles, things can really get out of hand.

But it’s not just those who buy their own health insurance who are facing higher costs these days. Workers who get insurance through their jobs might soon see their out-of-pocket costs skyrocket.

Employers are trying to save money — at the expense of employees

For months on end, financial experts have been sounding warnings about a potential recession. And that has a lot of companies spooked.

As such, many are trying to find ways to trim their costs. And cutting back on health benefits or passing higher costs onto employees is one solution many employers are looking at.

A recent McKinsey & Company report found that 49% of employers are considering increasing employees’ share of premium costs, while 47% are thinking of shifting to high-deductible health insurance plans. And 44% are looking at increasing employees’ share of out-of-pocket costs.

All told, that’s not great news for employees given that many people’s paychecks aren’t going as far now, due to the blow inflation has dealt. But that doesn’t mean all is lost. And workers still have options for coping with an uptick in out-of-pocket healthcare expenses.

The right savings plans can make a difference

It’s clearly not a great thing that companies are looking to lower their own expenses by making workers pay more for healthcare. But the good news is that the right tax-advantaged savings plan can make those expenses more manageable.

Those enrolled in a high-deductible health insurance plan can look at opening a health savings account, or HSA. HSAs allow for tax-free contributions, and any funds not needed immediately can be invested and grown in a tax-free manner, similar to a Roth IRA. Plus, HSA withdrawals are not taxed as long as they’re used to cover qualified healthcare expenses.

Also, HSA funds can be carried forward indefinitely, so savers don’t have to stress about using up leftover money in their accounts. Now the same can’t be said for flexible spending accounts, or FSAs. Those plans require savers to use up their funds annually or risk forfeiting them.

Also, FSAs don’t have an investment option. Funds that remain untapped can’t grow. But for workers whose health plans aren’t HSA-compatible, FSAs are a good option, because they do allow for tax-free contributions.

It’s unfortunate that employers are looking to slash their own costs in a way that hurts workers financially. But taking advantage of the right medical savings plans could make higher out-of-pocket healthcare costs easier to manage.

Just as importantly, funding an HSA or FSA could mean avoiding a scenario where healthcare expenses lead to credit card debt. And also, those with money in an HSA or FSA may be less likely to skip out on medical appointments and skimp on healthcare expenses, meaning they won’t be putting their well-being at risk.

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You can eat well without breaking the bank. 

Is improving your diet one of your New Year’s resolutions for 2023? If so, you’re no doubt in good company.

There’s just one problem. Swapping chips and cookies for fruits and vegetables at the supermarket could mean racking up much higher credit card bills. And at a time when inflation is still high and living costs are up across the board, that’s an expense that might prove burdensome.

The good news, though, is that it’s possible to load up on fruits and vegetables without spending a fortune. Here’s how to maintain a plant-heavy diet that won’t strain your budget.

1. Buy produce in bulk

If you’re really committed to eating more fruits and vegetables in 2023, then loading up on those items in bulk may be a fairly low-risk prospect — especially if you’re cooking not just for yourself, but for your family as well. And so in that case, joining a warehouse club like Costco could be your ticket to scoring fruits and vegetables on the relative cheap.

Right now, a basic Costco membership costs $60 a year. But you might save $10 or more per week on produce by purchasing it at Costco. This means that in six weeks, your membership fee could pay for itself, leaving you with a world of savings.

2. Buy produce locally

If you live in the middle of a large, bustling city, you may not have access to many local farms that grow produce. But if you live in suburbia, or in a rural area, then there may be plenty of local farms that will gladly sell produce to you directly. Buying produce locally could not only save you money, but help ensure that the items you’re getting are as fresh as possible.

3. Grow your own produce

If you live in a small apartment and your outdoor space consists of a tiny balcony, then growing your own produce probably isn’t a feasible option to pursue. But if you have a backyard, you can set up your own garden and try growing some of your own vegetables and fruits. You may find that this not only saves you money, but also gives you a fun, low-cost hobby to enjoy.

Better yet, look at teaming up with local friends and swapping home-grown produce as it comes in. If you wind up with an abundance of tomatoes, for example, you may be able to trade those extras for some of your neighbor’s peppers.

The start of a new year is a great time to assess your habits and figure out if changes are worth making. And if you can freely admit that you can count the number of times you ate fruits and vegetables on 10 fingers or less in 2022, then it may be time to alter your diet.

But you certainly don’t have to go broke in the course of eating more fruits and vegetables. Instead, you just need to find the right sources — or, in some cases, take matters into your own hands.

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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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