Money Management

[[{“value”:”Image source: The Motley Fool/Unsplash
An astounding 63% of Americans don’t have enough money in the bank to cover an unplanned $500 expense, according to emergency savings startup SecureSave. So if your savings account seems to be overflowing with cash, you might assume you’re in a great place.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. It’s definitely better to have more money in savings than not enough. But if any of these situations apply to you, it’s a sign that you may be parking too much cash in savings for your own good.1. Your emergency fund can cover more than six months of billsIt’s important to have money set aside for a rainy day, whether it’s medical bills, a car repair, or a period of unemployment. And most financial experts recommend having enough money in emergency savings to cover three to six months of essential bills. But if your emergency fund has more than six months’ worth of expenses, it may be that you’re keeping too much cash in the bank.Of course, there are exceptions. If you have a very unique job that would be hard to replace, then you may want to keep more than six months of bills in savings. The same might hold true if you’re self-employed with a variable income and no protections like unemployment benefits.But for most people, a six-month emergency fund is sufficient. So if your balance goes beyond that, you may want to move some of your remaining money into a certificate of deposit (CD), where you can lock in a higher interest rate. Click here for a list of the best CD rates today.2. You have the ability to pay off a costly credit card balanceThe longer you let a credit card balance linger, the more interest it might cost you. A $5,000 balance being charged 18% interest will cost you a little over $2,600 in interest if it takes you five years to shed. So if you have enough money in savings to pay off your credit card debt and still have some cash left over for emergencies, then it makes sense to tackle those balances as soon as possible.Now, you don’t want to deplete your emergency fund to pay off credit cards. If you do and another surprise expense pops up, you might have to borrow again — and this time at a higher interest rate.But if you have enough money in savings to pay off your credit cards and still cover three months of essential bills, then you should knock out your debt. The amount of interest your credit cards are charging you is probably way more than the interest you’re earning from having that money in the bank.3. You’re keeping cash in savings that you don’t plan to use for many yearsMoney you might need for emergencies or near-term goals should be kept in a savings account. But if you’re keeping cash in your savings that you don’t expect to use for about seven years or more, then investing it is a better bet.Over the past 50 years, the S&P 500 has rewarded investors with an average annual 10% return, which accounts for years when stocks did well and years when they did the opposite. By contrast, a savings account might pay you an APY of 4% now, but that rate isn’t likely to last much longer.But even if it does, say you have an extra $10,000 in savings. At 4% a year, in 30 years, it’ll be worth about $32,400. But if you invest it in a stock portfolio that pays you 10% a year, in 30 years, your $10,000 will be worth about $174,500 instead.So think carefully about what you plan to use your money for. And if you have a long window before you’ll need it, open a brokerage account and start earning more on your money.Believe it or not, there is such a thing as having too much money in your savings account. If any of the above signs apply to you, it’s time to make changes so you don’t lose out financially.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

An astounding 63% of Americans don’t have enough money in the bank to cover an unplanned $500 expense, according to emergency savings startup SecureSave. So if your savings account seems to be overflowing with cash, you might assume you’re in a great place.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

It’s definitely better to have more money in savings than not enough. But if any of these situations apply to you, it’s a sign that you may be parking too much cash in savings for your own good.

1. Your emergency fund can cover more than six months of bills

It’s important to have money set aside for a rainy day, whether it’s medical bills, a car repair, or a period of unemployment. And most financial experts recommend having enough money in emergency savings to cover three to six months of essential bills. But if your emergency fund has more than six months’ worth of expenses, it may be that you’re keeping too much cash in the bank.

Of course, there are exceptions. If you have a very unique job that would be hard to replace, then you may want to keep more than six months of bills in savings. The same might hold true if you’re self-employed with a variable income and no protections like unemployment benefits.

But for most people, a six-month emergency fund is sufficient. So if your balance goes beyond that, you may want to move some of your remaining money into a certificate of deposit (CD), where you can lock in a higher interest rate. Click here for a list of the best CD rates today.

2. You have the ability to pay off a costly credit card balance

The longer you let a credit card balance linger, the more interest it might cost you. A $5,000 balance being charged 18% interest will cost you a little over $2,600 in interest if it takes you five years to shed. So if you have enough money in savings to pay off your credit card debt and still have some cash left over for emergencies, then it makes sense to tackle those balances as soon as possible.

Now, you don’t want to deplete your emergency fund to pay off credit cards. If you do and another surprise expense pops up, you might have to borrow again — and this time at a higher interest rate.

But if you have enough money in savings to pay off your credit cards and still cover three months of essential bills, then you should knock out your debt. The amount of interest your credit cards are charging you is probably way more than the interest you’re earning from having that money in the bank.

3. You’re keeping cash in savings that you don’t plan to use for many years

Money you might need for emergencies or near-term goals should be kept in a savings account. But if you’re keeping cash in your savings that you don’t expect to use for about seven years or more, then investing it is a better bet.

Over the past 50 years, the S&P 500 has rewarded investors with an average annual 10% return, which accounts for years when stocks did well and years when they did the opposite. By contrast, a savings account might pay you an APY of 4% now, but that rate isn’t likely to last much longer.

But even if it does, say you have an extra $10,000 in savings. At 4% a year, in 30 years, it’ll be worth about $32,400. But if you invest it in a stock portfolio that pays you 10% a year, in 30 years, your $10,000 will be worth about $174,500 instead.

So think carefully about what you plan to use your money for. And if you have a long window before you’ll need it, open a brokerage account and start earning more on your money.

Believe it or not, there is such a thing as having too much money in your savings account. If any of the above signs apply to you, it’s time to make changes so you don’t lose out financially.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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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[[{“value”:”Image source: Getty Images
Being in credit card debt is no fun. As you quickly find out, credit cards have extremely high interest rates. The average rate on cards that are charged interest is a staggering 23.37%, according to the Federal Reserve.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. At that interest rate, $10,000 in debt would cost you over $2,300 per year. And unfortunately, interest charges aren’t the only way credit card debt could cost you.1. It could lower your credit scoreIf you have a large amount of credit card debt, it could be hurting your credit score. One of the most important scoring criteria is your amounts owed, and specifically your credit utilization. That’s the percentage of your credit limits you’re using.Let’s say you have $7,000 in credit card debt and $10,000 in total credit limits on your cards. Your credit utilization would be 70%, which would be bad for your credit score.Lower is better for credit utilization. As a general rule, it’s recommended to stay under 30% utilization to avoid damaging your credit.When you’re deep in credit card debt, one of the best ways to get out is a balance transfer card. This type of card lets you refinance your debt and pay it down interest-free for an introductory period. Check out our list of the best balance transfer cards for 0% intro APRs lasting as long as 21 months!2. Getting a mortgage is harder and more expensiveCredit card debt is a serious problem when you’re planning to buy a house. For starters, it could be harder to qualify for a mortgage. Mortgage lenders will check your credit score, and if that’s too low because of your debt, they may not approve your application.They’ll also check your debt-to-income (DTI) ratio — your monthly debt payments compared to your income. Many lenders won’t approve you for a mortgage if your DTI ratio with your housing payment will be higher than 36%.Even if you can get approved for a mortgage, you may get stuck with a higher mortgage rate. This can cost you tens of thousands of dollars or more. Let’s say your credit card debt is the difference between getting a rate of 7% and 7.5% on a $300,000 home loan. Over a 30-year mortgage, that extra 0.5% would cost you nearly $40,000.3. It ties up money you could be saving or investingThere’s also an opportunity cost to credit card debt. The money you spend on it is money you can’t use for other financial goals.For example, you have $10,000 in debt at a 23% interest rate. If you pay $500 per month, it will take you just over 25 months to pay off. If you’d been able to put that money in an investment account or a high-yield savings account instead, you’d have $12,732 plus all the interest you earned on it.What to do about credit card debtIt’s frustrating to be in credit card debt. But all the hidden costs are good motivation to pay it off as quickly as possible. Here are some tips to do that:Go over your monthly expenses and look for places to cut back on your spending.Increase your income by picking up extra shifts at work or starting a side hustle.Put as much money as possible toward your credit cards every month.See if you can get a balance transfer card to save on interest.Do all that, and you’ll make faster progress on your credit card debt. Remember that the more you pay toward it per month, the sooner you’ll be debt-free.If you’re not in credit card debt, the best thing you can do for yourself is to keep avoiding it. Pay your credit card balance in full every month by the due date. You won’t be charged interest if you do this. You’ll be able to reap the benefits the top credit cards offer, without the cost of interest or the stress of credit card debt.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Being in credit card debt is no fun. As you quickly find out, credit cards have extremely high interest rates. The average rate on cards that are charged interest is a staggering 23.37%, according to the Federal Reserve.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

At that interest rate, $10,000 in debt would cost you over $2,300 per year. And unfortunately, interest charges aren’t the only way credit card debt could cost you.

1. It could lower your credit score

If you have a large amount of credit card debt, it could be hurting your credit score. One of the most important scoring criteria is your amounts owed, and specifically your credit utilization. That’s the percentage of your credit limits you’re using.

Let’s say you have $7,000 in credit card debt and $10,000 in total credit limits on your cards. Your credit utilization would be 70%, which would be bad for your credit score.

Lower is better for credit utilization. As a general rule, it’s recommended to stay under 30% utilization to avoid damaging your credit.

When you’re deep in credit card debt, one of the best ways to get out is a balance transfer card. This type of card lets you refinance your debt and pay it down interest-free for an introductory period. Check out our list of the best balance transfer cards for 0% intro APRs lasting as long as 21 months!

2. Getting a mortgage is harder and more expensive

Credit card debt is a serious problem when you’re planning to buy a house. For starters, it could be harder to qualify for a mortgage. Mortgage lenders will check your credit score, and if that’s too low because of your debt, they may not approve your application.

They’ll also check your debt-to-income (DTI) ratio — your monthly debt payments compared to your income. Many lenders won’t approve you for a mortgage if your DTI ratio with your housing payment will be higher than 36%.

Even if you can get approved for a mortgage, you may get stuck with a higher mortgage rate. This can cost you tens of thousands of dollars or more. Let’s say your credit card debt is the difference between getting a rate of 7% and 7.5% on a $300,000 home loan. Over a 30-year mortgage, that extra 0.5% would cost you nearly $40,000.

3. It ties up money you could be saving or investing

There’s also an opportunity cost to credit card debt. The money you spend on it is money you can’t use for other financial goals.

For example, you have $10,000 in debt at a 23% interest rate. If you pay $500 per month, it will take you just over 25 months to pay off. If you’d been able to put that money in an investment account or a high-yield savings account instead, you’d have $12,732 plus all the interest you earned on it.

What to do about credit card debt

It’s frustrating to be in credit card debt. But all the hidden costs are good motivation to pay it off as quickly as possible. Here are some tips to do that:

• Go over your monthly expenses and look for places to cut back on your spending.
• Increase your income by picking up extra shifts at work or starting a side hustle.
• Put as much money as possible toward your credit cards every month.
• See if you can get a balance transfer card to save on interest.

Do all that, and you’ll make faster progress on your credit card debt. Remember that the more you pay toward it per month, the sooner you’ll be debt-free.

If you’re not in credit card debt, the best thing you can do for yourself is to keep avoiding it. Pay your credit card balance in full every month by the due date. You won’t be charged interest if you do this. You’ll be able to reap the benefits the top credit cards offer, without the cost of interest or the stress of credit card debt.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: The Motley Fool/Upsplash
If you’re 50 and don’t have any retirement savings, you are not alone. According to AARP, around 1 in 5 adults aged 50 and over haven’t yet set aside any money for their old age. While there’s some solace in knowing other people are in the same boat, it doesn’t stop it from feeling nerve-wracking.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. It isn’t an ideal situation, but there’s no point in beating yourself up about what’s past. What matters is what you do now. It’s never too late to start saving, and you’ve still got a number of working years ahead of you. That gives you time to build up a nest egg.Step one is to open a retirement account with a top stock broker so you can start building your investment portfolio. Then take the following three steps.1. Review your spending and financial situationSit down with your recent bank statements and look at your spending vs. your income. There are two benefits to taking a close look at your finances. The first is that it will help you find some spare cash that you can use to build your retirement fund.Let’s say you can invest $750 a month for the next 17 years. Assuming an average annual return of 8%, your portfolio might be worth over $300,000 by the time you reach 67.If you’re living paycheck to paycheck, think about what’s feasible for you. You may need to make some cuts and/or try to increase your income. If you feel you’ve already squeezed every spare drop out of your cash flow, it’s understandable. Think about what’s really essential and be as aggressive as possible — you’ll be grateful for every extra dollar once you stop working.The other benefit of reviewing your finances is that it will give you an idea of how much life will cost in retirement. A common starting point is to estimate you’ll need about 80% of your pre-retirement income once you stop working. Some of that will come from Social Security and other sources.The rest will need to come from your investments. A financial adviser or retirement calculator can help you map out different scenarios.2. Make the most of tax-advantaged accountsTax-advantaged accounts can make it a little easier to save for retirement. If your work has a 401(k) plan, find out how to get involved and whether it offers any employer contributions. Some companies will match a percentage of what you put in, which is extra money for your golden years.If a 401(k) isn’t an option, think about which IRA would suit you best. Check out our list of the best brokerages for IRAs to find one with low fees and a range of investment options.Traditional IRA contributions reduce your tax bill today, while a Roth IRA gives you tax breaks further down the line. You put in post-tax dollars and can then make tax-free withdrawals once you’ve retired. SIMPLE and SEP IRAs are designed for small business owners and freelancers.The IRS sets limits on how much people can contribute to their IRAs and 401(k)s each year. But if you’re over 50, you can make extra catch-up contributions. For example, the maximum most people can contribute to an IRA for 2025 is $7,000. Anyone over 50 can put in an extra $1,000.If you’re in the 24% tax bracket and put $8,000 into a traditional IRA, you might cut your tax bill by $1,920.3. Consider your optionsIf you haven’t yet been able to build up much in the way of investments or alternative income streams, you may wind up working longer than you’d hoped. Those extra years of income could help you build your nest egg. Not only that, but compound interest would have more time to work in your favor.There are also benefits to waiting and claiming Social Security a little later in life. Schwab points out that you’ll get 30% less in annual benefits if you start taking payments at age 62 compared to 67. If you postpone retirement until you’re 70, you might be able to get additional delayed retirement credits.If you own your home, another option to consider is downsizing. If you can sell and move to a smaller home, you could use any profits you make to boost your portfolio balance. On top of which, you may also reduce your living costs. It’s a big decision, but one that could make your money stretch further in retirement.It’s never too late to start savingThere’s all kinds of financial advice about how much we should have saved at different stages of our lives. But it’s often easier said than done. Factors like medical emergencies, job losses, and other curveballs can throw even the best-laid plans off course.Try not to get disheartened. Instead, take steps to kick-start your retirement investments today. Work out how much you can invest each month and what tax breaks you’re eligible for.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Charles Schwab is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and Flow and recommends the following options: short December 2024 $67.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.”}]] [[{“value”:”

If you’re 50 and don’t have any retirement savings, you are not alone. According to AARP, around 1 in 5 adults aged 50 and over haven’t yet set aside any money for their old age. While there’s some solace in knowing other people are in the same boat, it doesn’t stop it from feeling nerve-wracking.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

It isn’t an ideal situation, but there’s no point in beating yourself up about what’s past. What matters is what you do now. It’s never too late to start saving, and you’ve still got a number of working years ahead of you. That gives you time to build up a nest egg.

Step one is to open a retirement account with a top stock broker so you can start building your investment portfolio. Then take the following three steps.

1. Review your spending and financial situation

Sit down with your recent bank statements and look at your spending vs. your income. There are two benefits to taking a close look at your finances. The first is that it will help you find some spare cash that you can use to build your retirement fund.

Let’s say you can invest $750 a month for the next 17 years. Assuming an average annual return of 8%, your portfolio might be worth over $300,000 by the time you reach 67.

If you’re living paycheck to paycheck, think about what’s feasible for you. You may need to make some cuts and/or try to increase your income. If you feel you’ve already squeezed every spare drop out of your cash flow, it’s understandable. Think about what’s really essential and be as aggressive as possible — you’ll be grateful for every extra dollar once you stop working.

The other benefit of reviewing your finances is that it will give you an idea of how much life will cost in retirement. A common starting point is to estimate you’ll need about 80% of your pre-retirement income once you stop working. Some of that will come from Social Security and other sources.

The rest will need to come from your investments. A financial adviser or retirement calculator can help you map out different scenarios.

2. Make the most of tax-advantaged accounts

Tax-advantaged accounts can make it a little easier to save for retirement. If your work has a 401(k) plan, find out how to get involved and whether it offers any employer contributions. Some companies will match a percentage of what you put in, which is extra money for your golden years.

If a 401(k) isn’t an option, think about which IRA would suit you best. Check out our list of the best brokerages for IRAs to find one with low fees and a range of investment options.

Traditional IRA contributions reduce your tax bill today, while a Roth IRA gives you tax breaks further down the line. You put in post-tax dollars and can then make tax-free withdrawals once you’ve retired. SIMPLE and SEP IRAs are designed for small business owners and freelancers.

The IRS sets limits on how much people can contribute to their IRAs and 401(k)s each year. But if you’re over 50, you can make extra catch-up contributions. For example, the maximum most people can contribute to an IRA for 2025 is $7,000. Anyone over 50 can put in an extra $1,000.

If you’re in the 24% tax bracket and put $8,000 into a traditional IRA, you might cut your tax bill by $1,920.

3. Consider your options

If you haven’t yet been able to build up much in the way of investments or alternative income streams, you may wind up working longer than you’d hoped. Those extra years of income could help you build your nest egg. Not only that, but compound interest would have more time to work in your favor.

There are also benefits to waiting and claiming Social Security a little later in life. Schwab points out that you’ll get 30% less in annual benefits if you start taking payments at age 62 compared to 67. If you postpone retirement until you’re 70, you might be able to get additional delayed retirement credits.

If you own your home, another option to consider is downsizing. If you can sell and move to a smaller home, you could use any profits you make to boost your portfolio balance. On top of which, you may also reduce your living costs. It’s a big decision, but one that could make your money stretch further in retirement.

It’s never too late to start saving

There’s all kinds of financial advice about how much we should have saved at different stages of our lives. But it’s often easier said than done. Factors like medical emergencies, job losses, and other curveballs can throw even the best-laid plans off course.

Try not to get disheartened. Instead, take steps to kick-start your retirement investments today. Work out how much you can invest each month and what tax breaks you’re eligible for.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Charles Schwab is an advertising partner of Motley Fool Money. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and Flow and recommends the following options: short December 2024 $67.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.

“}]] Read More 

[[{“value”:”Image source: Getty Images
Series I Savings Bonds, or I bonds, became extremely popular a couple of years ago when inflation spiked to a multi-decade high. However, inflation has cooled off, and the interest rates paid by these inflation-protected instruments have as well. I bonds issued from November through April 2025 have an initial yield of 3.11%, down from 4.28% previously and 5.27% a year ago.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. With CDs that yield 4% or more still readily available, are I bonds appealing anymore? It isn’t a simple answer, and here’s what you need to know.Do you want to lock in today’s high interest rates before the Federal Reserve cuts rates any further? Click here for our up-to-date list of the best CD rates right now.CD rates are higher right nowHere’s one key point to keep in mind. CD rates tend to be highest in a high-rate environment, and I bond rates tend to be highest in a high-inflation environment. And those don’t always happen at the same time.Right now, even though the Federal Reserve has started to lower its benchmark interest rate, we’re still in a relatively high-rate environment. In fact, the benchmark federal funds rate is still significantly higher than the peak of the previous rate-hike cycle in 2019. However, inflation has clearly gravitated toward the Fed’s 2% goal.Because of this, it’s possible to get a significantly higher interest rate from a CD than the current 3.11% yield from I bonds. As of this writing, you can find 1-year CDs with yields greater than 4%, and 5-year CDs that pay 3.5% or more.However, it isn’t just a question of interest rates. There are some pros and cons of both types of interest-bearing instruments to keep in mind.Flexibility is an advantage for CDsIn addition to the interest rates, another advantage for CDs is flexibility. While it’s true that CDs are generally not flexible when compared to savings and money market accounts, they are far more flexible than I bonds, at least at first.CDs have set terms (one year, two years, etc.), but if you need to get your money back early, you can. The worst-case scenario is that you’ll pay a penalty equal to a few months’ worth of interest.On the other hand, I bonds cannot be cashed in at all for the first year, and if you cash them in within five years, you’ll get hit with a penalty.Another key advantage for CDs that’s important to mention is deposit flexibility. Specifically, you can put as much money as you want into a CD. If you have $1 million in savings and want to open a 1-year CD with it, you can. On the other hand, individuals can only put $10,000 into I bonds per year.I bonds could work as a long-term hedgeSure, I bonds only pay 3.11% right now. But that isn’t necessarily going to be the case a year from now, two years from now, and so on.If you aren’t familiar with how they work, I bond interest rates have two parts — a fixed rate that stays the same for as long as the bond exists, and an inflation adjustment. Today’s 3.11% rate consists of a 1.2% fixed rate and 1.9% inflation adjustment (it doesn’t add exactly due to compounding mathematics).Here’s one thing to keep in mind. The 1.2% fixed rate is historically high for an I bond. In fact, the fixed component was 0% for much of the past several years. Buying I bonds now locks this in. If inflation were to spike to say, 5%, the inflation adjustment would be added to the fixed rate you’ve locked in.Consider this real-world example. In mid-2022 when inflation reached a 40-year high, I bonds were issued with a 0% fixed rate and a 9.62% inflation adjustment. If you were to buy an I bond today and inflation were to spike to 2022 levels again, your I bond would pay nearly 11%.To be perfectly clear, I bonds aren’t the best income investments. They are best suited to be an income-bearing insurance policy that protects your purchasing power if inflation is elevated.The bottom lineLike most personal finance topics, there isn’t a perfect choice here. It depends on your income expectations, long-term financial goals, and other factors. If you’re looking for a steady income stream and want to lock in today’s interest rates, CDs are the clear winner. On the other hand, if you want to protect yourself in the event inflation unexpectedly spikes, I bonds can be a great choice even though they have lower yields right now.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

Series I Savings Bonds, or I bonds, became extremely popular a couple of years ago when inflation spiked to a multi-decade high. However, inflation has cooled off, and the interest rates paid by these inflation-protected instruments have as well. I bonds issued from November through April 2025 have an initial yield of 3.11%, down from 4.28% previously and 5.27% a year ago.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

With CDs that yield 4% or more still readily available, are I bonds appealing anymore? It isn’t a simple answer, and here’s what you need to know.

Do you want to lock in today’s high interest rates before the Federal Reserve cuts rates any further? Click here for our up-to-date list of the best CD rates right now.

CD rates are higher right now

Here’s one key point to keep in mind. CD rates tend to be highest in a high-rate environment, and I bond rates tend to be highest in a high-inflation environment. And those don’t always happen at the same time.

Right now, even though the Federal Reserve has started to lower its benchmark interest rate, we’re still in a relatively high-rate environment. In fact, the benchmark federal funds rate is still significantly higher than the peak of the previous rate-hike cycle in 2019. However, inflation has clearly gravitated toward the Fed’s 2% goal.

Because of this, it’s possible to get a significantly higher interest rate from a CD than the current 3.11% yield from I bonds. As of this writing, you can find 1-year CDs with yields greater than 4%, and 5-year CDs that pay 3.5% or more.

However, it isn’t just a question of interest rates. There are some pros and cons of both types of interest-bearing instruments to keep in mind.

Flexibility is an advantage for CDs

In addition to the interest rates, another advantage for CDs is flexibility. While it’s true that CDs are generally not flexible when compared to savings and money market accounts, they are far more flexible than I bonds, at least at first.

CDs have set terms (one year, two years, etc.), but if you need to get your money back early, you can. The worst-case scenario is that you’ll pay a penalty equal to a few months’ worth of interest.

On the other hand, I bonds cannot be cashed in at all for the first year, and if you cash them in within five years, you’ll get hit with a penalty.

Another key advantage for CDs that’s important to mention is deposit flexibility. Specifically, you can put as much money as you want into a CD. If you have $1 million in savings and want to open a 1-year CD with it, you can. On the other hand, individuals can only put $10,000 into I bonds per year.

I bonds could work as a long-term hedge

Sure, I bonds only pay 3.11% right now. But that isn’t necessarily going to be the case a year from now, two years from now, and so on.

If you aren’t familiar with how they work, I bond interest rates have two parts — a fixed rate that stays the same for as long as the bond exists, and an inflation adjustment. Today’s 3.11% rate consists of a 1.2% fixed rate and 1.9% inflation adjustment (it doesn’t add exactly due to compounding mathematics).

Here’s one thing to keep in mind. The 1.2% fixed rate is historically high for an I bond. In fact, the fixed component was 0% for much of the past several years. Buying I bonds now locks this in. If inflation were to spike to say, 5%, the inflation adjustment would be added to the fixed rate you’ve locked in.

Consider this real-world example. In mid-2022 when inflation reached a 40-year high, I bonds were issued with a 0% fixed rate and a 9.62% inflation adjustment. If you were to buy an I bond today and inflation were to spike to 2022 levels again, your I bond would pay nearly 11%.

To be perfectly clear, I bonds aren’t the best income investments. They are best suited to be an income-bearing insurance policy that protects your purchasing power if inflation is elevated.

The bottom line

Like most personal finance topics, there isn’t a perfect choice here. It depends on your income expectations, long-term financial goals, and other factors. If you’re looking for a steady income stream and want to lock in today’s interest rates, CDs are the clear winner. On the other hand, if you want to protect yourself in the event inflation unexpectedly spikes, I bonds can be a great choice even though they have lower yields right now.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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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[[{“value”:”Image source: The Motley Fool/Upsplash
Earlier in the year, a lot of people were clamoring to open CDs while rates were sitting at or above 5%. But at this point, the days of 5% CDs are over.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. The Federal Reserve has cut interest rates twice this year — once in September, and once earlier this month. And the reason for those rate cuts is that inflation has been slowing, which is good for consumers. Cooling inflation means you shouldn’t see the cost of your gas, groceries, or utilities rise so dramatically in the coming months.But the Fed also isn’t done cutting interest rates. It’s expected to keep doing that in 2025. If you want to lock in a decent CD rate — somewhere in the 4% range like many CDs are paying today — then you’ll want to get moving. It’s important to shop around for a new CD to snag the best rate possible. Click here for a list of the best CD rates today to get started.But there’s also a specific strategy you may want to employ if you’re planning to open a CD before the end of the year. And it’s one that could pay off.It pays to consider longer-term CDsDuring periods when interest rates are stable, longer-term CDs commonly come with a higher interest rate than shorter-term CDs. This is because banks reward savers for committing to longer terms.That’s not the case today, though. You’re likely to find a better interest rate on a 12-month CD than a 36-month CD because banks are aware of the Fed’s plans to cut rates in the near term. You might assume that your best bet today is to open a 12-month CD and snag the highest possible rate. But if you’re saving for a goal that’s a few years away, and investing your money is too risky because of your relatively short timeline, then you may be better off with a longer-term CD– say, 36 months.You may be looking at a 4.5% interest rate on a 12-month CD today, vs. 3.75% on a 36-month CD. But with that second option, you’re locking in a good rate for three full years. With a 12-month CD, you run the risk of being unable to renew at an attractive rate once your CD matures.How much a longer-term CD could benefit youLet’s say you have $10,000 to put into a CD. If you open a 12-month CD at 4.5%, you’re earning $450. Beyond that, it’s anyone’s guess. With a $10,000, 36-month CD at 3.75%, you’re earning a guaranteed $1,168 because you get to keep your 3.75% rate for much longer. Meanwhile, let’s say 12-month CD rates drop to 3% by the time you’re ready to renew in 2025, and then to 2% the year after. In that case, you’re earning $313 your second year and then $215 the year after that. That’s a total of $978, which is clearly less than $1,168. Don’t just chase the highest interest rateIt’s easy to see why you’d be drawn to a 12-month CD today, or another relatively short-term rate that’s the highest your bank is offering. But before you commit to that, consider the benefit of locking up your money a bit longer, especially if a three-year time frame or so aligns with a specific goal of yours, like buying a house or paying for college. You may find that committing to a longer term pays better overall.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of Motley Fool Money. Maurie Backman 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.”}]] [[{“value”:”

Earlier in the year, a lot of people were clamoring to open CDs while rates were sitting at or above 5%. But at this point, the days of 5% CDs are over.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

The Federal Reserve has cut interest rates twice this year — once in September, and once earlier this month. And the reason for those rate cuts is that inflation has been slowing, which is good for consumers. Cooling inflation means you shouldn’t see the cost of your gas, groceries, or utilities rise so dramatically in the coming months.

But the Fed also isn’t done cutting interest rates. It’s expected to keep doing that in 2025. If you want to lock in a decent CD rate — somewhere in the 4% range like many CDs are paying today — then you’ll want to get moving.

It’s important to shop around for a new CD to snag the best rate possible. Click here for a list of the best CD rates today to get started.

But there’s also a specific strategy you may want to employ if you’re planning to open a CD before the end of the year. And it’s one that could pay off.

It pays to consider longer-term CDs

During periods when interest rates are stable, longer-term CDs commonly come with a higher interest rate than shorter-term CDs. This is because banks reward savers for committing to longer terms.

That’s not the case today, though. You’re likely to find a better interest rate on a 12-month CD than a 36-month CD because banks are aware of the Fed’s plans to cut rates in the near term.

You might assume that your best bet today is to open a 12-month CD and snag the highest possible rate. But if you’re saving for a goal that’s a few years away, and investing your money is too risky because of your relatively short timeline, then you may be better off with a longer-term CD– say, 36 months.

You may be looking at a 4.5% interest rate on a 12-month CD today, vs. 3.75% on a 36-month CD. But with that second option, you’re locking in a good rate for three full years. With a 12-month CD, you run the risk of being unable to renew at an attractive rate once your CD matures.

How much a longer-term CD could benefit you

Let’s say you have $10,000 to put into a CD. If you open a 12-month CD at 4.5%, you’re earning $450. Beyond that, it’s anyone’s guess. With a $10,000, 36-month CD at 3.75%, you’re earning a guaranteed $1,168 because you get to keep your 3.75% rate for much longer.

Meanwhile, let’s say 12-month CD rates drop to 3% by the time you’re ready to renew in 2025, and then to 2% the year after. In that case, you’re earning $313 your second year and then $215 the year after that. That’s a total of $978, which is clearly less than $1,168.

Don’t just chase the highest interest rate

It’s easy to see why you’d be drawn to a 12-month CD today, or another relatively short-term rate that’s the highest your bank is offering. But before you commit to that, consider the benefit of locking up your money a bit longer, especially if a three-year time frame or so aligns with a specific goal of yours, like buying a house or paying for college. You may find that committing to a longer term pays better overall.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of Motley Fool Money. Maurie Backman 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.

“}]] Read More 

[[{“value”:”Image source: The Motley Fool/Upsplash
U.S. consumers have an average credit score of 715, according to Experian. And while that’s a good score, it’s not considered great.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. Experians classifies a credit score of 740 to 799 as very good and designates scores of 800 to 850 as excellent. So if you want to qualify for the most affordable borrowing rates on your next loan, you’ll want to get your credit score into those ranges. And it’s especially important to do that now for one big reason.Borrowing costs are finally easingYou may have heard that the Federal Reserve has begun cutting its benchmark interest rate. And you should know that the Fed will likely continue making rate cuts into 2025.If you’re wondering how that might impact your finances, here’s the scoop. A lower federal funds rate is likely to lead to lower interest rates for consumer loans like mortgages, auto loans, personal loans, and more. Come 2025, you may be more eager to sign a loan when it’s cheaper to borrow.That’s why now’s such an important time to boost your credit score. If you work on that over the next few months, you may find that by the time you’re ready to sign a loan, you’re in a better position to not only qualify but also snag a great rate that results in lower monthly payments.How to boost your credit scoreBoosting your credit score in a meaningful way may not happen overnight. But if you commit to it over the next few months, you may find that you’re in a great position to sign a loan in 2025 once rates are more appealing to you. Here’s how.Pay on timeOne of the most important factors in calculating a credit score is your payment history. Paying your bills on time and avoiding late payments in the coming months is crucial, so set calendar reminders to avoid being late. And where possible, put your bills on autopay.Increase your incomeMake sure you’re not late paying your bills due to a lack of funds. And if money is an issue, set up a budget that makes it easier to track your spending. You may also want to consider taking on a side hustle to boost your income. Now happens to be a good time to get one, given that many businesses need extra holiday help.Pay down debtAnother great way to boost your credit score is to lower your credit utilization, which measures the amount of available credit on your cards you’re using at one time. Paying off some of your existing credit card debt could give your score a nice increase — plus save you money on interest.Consider a balance transferIf you’re juggling balances on multiple credit cards, consider a balance transfer. These offers generally give you a period of 0% interest so you can get ahead of your debt and whittle it down sooner. And if you’re willing to work a side hustle, you can use some of your extra earnings to chip away at that debt faster. Click here for a list of the best balance transfer credit cards.Check your credit reports for errorsFinally, pull a copy of your credit report from each reporting bureau — Experian, Equifax, and TransUnion — and review it for errors. If you see a mistake that hurts you, like a late payment you actually made on time, contact the bureau in question right away to try to get that error corrected.Set yourself up for successBorrowing costs have been high these past few years, but serious relief may be in sight for 2025. Your best bet is to boost your credit score as soon as possible so you’re able to take advantage of more affordable loan rates in the new year.Remember, too, that even if you don’t expect to borrow money in 2025, you never know when that need might arise. For example, you may end up having to replace your car unexpectedly. The higher your credit score is, the easier it becomes to borrow money in a pinch.Alert: highest cash back card we’ve seen now has 0% intro APR into 2026
This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!
Click here to read our full review for free and apply in just 2 minutes. 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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.”}]] [[{“value”:”

U.S. consumers have an average credit score of 715, according to Experian. And while that’s a good score, it’s not considered great.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

Experians classifies a credit score of 740 to 799 as very good and designates scores of 800 to 850 as excellent. So if you want to qualify for the most affordable borrowing rates on your next loan, you’ll want to get your credit score into those ranges. And it’s especially important to do that now for one big reason.

Borrowing costs are finally easing

You may have heard that the Federal Reserve has begun cutting its benchmark interest rate. And you should know that the Fed will likely continue making rate cuts into 2025.

If you’re wondering how that might impact your finances, here’s the scoop. A lower federal funds rate is likely to lead to lower interest rates for consumer loans like mortgages, auto loans, personal loans, and more. Come 2025, you may be more eager to sign a loan when it’s cheaper to borrow.

That’s why now’s such an important time to boost your credit score. If you work on that over the next few months, you may find that by the time you’re ready to sign a loan, you’re in a better position to not only qualify but also snag a great rate that results in lower monthly payments.

How to boost your credit score

Boosting your credit score in a meaningful way may not happen overnight. But if you commit to it over the next few months, you may find that you’re in a great position to sign a loan in 2025 once rates are more appealing to you. Here’s how.

Pay on time

One of the most important factors in calculating a credit score is your payment history. Paying your bills on time and avoiding late payments in the coming months is crucial, so set calendar reminders to avoid being late. And where possible, put your bills on autopay.

Increase your income

Make sure you’re not late paying your bills due to a lack of funds. And if money is an issue, set up a budget that makes it easier to track your spending. You may also want to consider taking on a side hustle to boost your income. Now happens to be a good time to get one, given that many businesses need extra holiday help.

Pay down debt

Another great way to boost your credit score is to lower your credit utilization, which measures the amount of available credit on your cards you’re using at one time. Paying off some of your existing credit card debt could give your score a nice increase — plus save you money on interest.

Consider a balance transfer

If you’re juggling balances on multiple credit cards, consider a balance transfer. These offers generally give you a period of 0% interest so you can get ahead of your debt and whittle it down sooner. And if you’re willing to work a side hustle, you can use some of your extra earnings to chip away at that debt faster. Click here for a list of the best balance transfer credit cards.

Check your credit reports for errors

Finally, pull a copy of your credit report from each reporting bureau — Experian, Equifax, and TransUnion — and review it for errors. If you see a mistake that hurts you, like a late payment you actually made on time, contact the bureau in question right away to try to get that error corrected.

Set yourself up for success

Borrowing costs have been high these past few years, but serious relief may be in sight for 2025. Your best bet is to boost your credit score as soon as possible so you’re able to take advantage of more affordable loan rates in the new year.

Remember, too, that even if you don’t expect to borrow money in 2025, you never know when that need might arise. For example, you may end up having to replace your car unexpectedly. The higher your credit score is, the easier it becomes to borrow money in a pinch.

Alert: highest cash back card we’ve seen now has 0% intro APR into 2026

This credit card is not just good – it’s so exceptional that our experts use it personally. It features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee!

Click here to read our full review for free and apply in just 2 minutes.

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.
Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money 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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