Money Management

Putting your emergency fund in the wrong type of account can be risky. Find out why CDs aren’t a good choice for emergency savings. [[{“value”:”

Interest rates came down recently, and they’re expected to fall even further by the end of the year. Certificates of deposits (CDs) are a way to protect your savings from declining rates. You can lock in an APY for a full CD term. Many of the top CDs listed here are still offering competitive rates of 4% to 5%.

It’s tempting to put your emergency fund in a CD. This might be the largest savings you have, so locking in a high rate for it seems like a good idea. But it’s actually a risky strategy that could end up causing financial stress and costing you money.

Why you shouldn’t put your emergency fund in a CD

Your emergency fund needs to be accessible at a moment’s notice. You never know when you’ll need it, after all. When you put money into a CD, you can’t withdraw it whenever you want. You’re supposed to keep it there for the entire CD term. For example, if you get a 2-year CD, then you can withdraw your money after two years.

That doesn’t work for emergency savings. Imagine your car breaks down and you need it repaired ASAP. You can’t exactly tell the mechanic you’ll pay the bill in two years when your CD matures.

If you need to take money out of a CD before the maturity date, the bank will likely charge you an early withdrawal penalty. This is normally a portion of your interest earnings, and the exact amount depends on the bank and the length of the CD. A 1-year CD might have an early withdrawal penalty of three months interest, a 2-year CD could charge six months interest, and so on.

The whole reason to open a CD in the first place is for a stable, competitive rate. If you need to withdraw money early and lose a big chunk of your CD interest, it defeats the purpose of opening one in the first place.

Keep your emergency fund in a high-yield savings account

The best place for your emergency fund is a savings account. Specifically, a high-yield savings account. This type of savings account pays interest rates well above the national average. In fact, some of these top-rated savings accounts are paying as much as or more than CDs right now.

When your emergency fund is in a savings account, you can withdraw it at any time. With online accounts, you’ll be able to transfer your money to your checking account if you ever need it. Some savings accounts even include an ATM card in case you need quick cash.

If you’re looking for an account for your emergency fund, consider the UFB Portfolio Savings Account. It has a 4.57% APY, no account fees, and an ATM card with access to fee-free withdrawals at about 91,000 locations. Click here to learn more and open an account today.

CDs are well-suited for savings you’re sure you won’t need for a certain amount of time. If you have money saved for a down payment on a home, but you’re not planning to start shopping until 2026, you could put it in a 12- or 18-month CD. For your emergency fund, and any other savings you could need without warning, a high-yield savings account is the better choice.

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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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Walmart doesn’t always offer the lowest prices or the highest quality. Here are five products one writer refuses to purchase at the retail giant. [[{“value”:”

I suspect most of us shop at Walmart to protect the money sitting in our checking accounts. Heaven knows it’s not for the serene ambiance.

However, what if what we’ve been told about Walmart having the lowest prices is untrue? What if there are a host of products we’d be better off buying somewhere else, either because of cost or quality?

Here are five examples of products you may want to avoid buying at Walmart and why you may be better off spending your hard-earned money elsewhere.

1. Vacuums

I’ll admit to buying a vacuum or two from Walmart over the years. However, I’ve recently realized that Walmart does not always offer the lowest price on vacuum cleaners. Here’s an example based on today’s prices.

Shark Lift-Away® with PowerFins HairPro and Odor Neutralizer Technology

Walmart price: $190Amazon price: $160Home Depot price: $180Wayfair price: $160

Will prices always be lower elsewhere? Absolutely not. The point is that it pays to shop around before assuming Walmart prices are always the lowest. One other issue involves Walmart’s relatively small selection of vacuums. For a greater selection, you may want to look somewhere else.

And if you’d be more comfortable working with a salesperson who can walk you through the pros and cons of several models, your best bet would be to visit a retailer specializing in sales and repair.

A savings of $20 to $30 may not seem very impressive, but that’s more cash you have to tuck into savings. Click here for our favorite high-yield savings accounts — open one before rates drop more.

2. Gift cards

There may be over 4,600 Walmart stores in 52 states and territories, but that doesn’t mean it’s always the most competitive for every purchase. Take, for example, gift cards.

Walmart does sell gift cards, but that doesn’t mean it always has what you’re looking for. If you’re a Sam’s Club or Costco member, check out what your club has to offer. Gift cards from either warehouse giant are often deeply discounted.

And some sites, like Giftcards.com, Raise, and CardCash, allow you to buy retail store gift cards for less than face value.

3. Fresh produce

If you’re making an apple pie and are squeezed for time, you may be tempted to pick up apples at your nearest Walmart. But not only can you save money by checking out your local farmer’s market or Aldi store, but you’re likely to find a fresher selection.

Few things are more disgusting than biting into a blueberry only to find that the inside is rotten. It’s important to trust that your produce is fresh, and it’s certainly not a guarantee at Walmart.

Author’s note: Although I continue to order pantry items from our nearby Walmart (thanks to Walmart+ and its free delivery), I’ve had no luck with fresh produce. After months of dissatisfaction with Walmart’s fruits and vegetables, I recently threw away a container of perfectly lovely blueberries after learning that most were rotten in the middle. That was it for me.

However, based on comments I’ve found online, some people are pretty happy with the fresh produce carried by their local Walmart store, so it may be a regional issue.

4. Party supplies

The next time you’re having a cookout or birthday party, you may want to pick up your paper plates and cups, throwaway tablecloths, streamers, and other supplies somewhere other than Walmart. For example, you’ll likely pay far less at your local Dollar Tree, 99 Cents Only, Dollar General, or Family Dollar store. You’re money ahead as long as you can find plates and cups sturdy enough to get through the event.

5. Clothing

There’s a good reason Walmart’s prices on swimsuits, T-shirts, dresses, pants, and shoes are so cheap. It keeps prices low by selling lower-quality items. That may be fine if you’re buying a T-shirt and sweatpants to lounge around at home or putter in the garden. However, you have a better chance of purchasing clothes that will hold up well enough to wear in public if you shop somewhere else.

As I mentioned, I continue to shop at a Walmart blocks from my home, and I’m especially fond of the benefits associated with Walmart+ membership. Keeping a careful eye on my personal finances means not wasting money on things that will fall apart, end up being disgusting (like those blueberries that have nearly turned me off the fruit), or cost more than they should.

As with any retailer, it pays to know which items are bargains and which ones to avoid.

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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. Dana George has positions in Amazon, Apple, and Walmart. The Motley Fool has positions in and recommends Amazon, Apple, Costco Wholesale, and Walmart. The Motley Fool has a disclosure policy.

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You don’t have to bust your budget to buy a good car. Read on to find out why these vehicles should be on your shortlist. [[{“value”:”

Car prices have spiked over the past few years, with the average transaction price of a new car being $48,937 in September, up from just under $40,000 in early 2020.

Paying this much for a new car is out of reach for budget-conscious car buyers. Thankfully, plenty of cheaper options are still available, including a handful that start at $25,000. As a bonus for all you penny-pinchers, three vehicles on the list below have some of the cheapest car insurance rates. Here are the models that still look like a good deal.

1. Honda HR-V

Starting price: $25,400

Hondas are well-known for their reliability and ability to hold their value, which is why buying this subcompact SUV for just $25,400 could be a great decision. The HR-V packs a lot into its relatively small profile, including Apple CarPlay® and a 7-inch touchscreen display.

Safety buffs will love that the base LX trim comes standard with Honda Sensing technology, which includes forward collision warning and lane-keep assist. Rounding out the HR-V’s safety credentials is its Top Safety Pick+ designation from the Insurance Institute of Highway Safety (IIHS), the organization’s highest rating. CNN has also ranked the HR-V as one of the cheapest vehicles to insure.

Fun fact: The type of car you drive can affect your insurance costs. Click here to find the best car insurance for your needs.

2. Hyundai Kona

Starting price: $24,350

Another stellar option for budget-conscious buyers is the 2025 Kona, which starts at just $24,350. That may seem like a shockingly low price for a new car, but don’t worry, this subcompact SUV is still loaded with goodies.

The base SE trim comes with a 12.3-inch touchscreen display, 17-inch rims, and Apple CarPlay. You’ll zip by gas stations, too, considering the 147 horsepower 2.0-liter engine gets an EPA-estimated combined (highway and city) 31 mpg. Upgrade to the SEL trim (still under $26,000), and you’ll get a leather-wrapped steering wheel power, power driver’s seat, and large 18-inch wheels. To top it all off, the Kona is also an IIHS Top Safety Pick+.

3. Chevrolet Trailblazer

Starting price: $24,790

The newest Trailblazer looks like a downright bargain with a starting price that’s just $24,790. You’ll get a 1.2-liter turbocharged engine at the price and a slew of safety features, like automatic emergency braking, pedestrian detection, and lane-keep assist.

Add the all-wheel-drive option to the LS trim for an extra $1,605, and you’ll also get the upgraded 1.3-liter turbo engine with 155 horsepower vs. the smaller engine’s 137 horses. Either way, you’ll ride on 17-inch rims and change your tunes on the 11-inch touchscreen. As a bonus, the Trailblazer also ranks near the top for cheapest cars to insure.

4. Toyota Corolla

Starting price: $22,175

A staple in any list of affordable cars is the prolific Toyota Corolla. While the Corolla’s styling isn’t a head-turner, its starting price of just $22,175 certainly is.

The compact sedan sports a 2.0-liter 169-horsepower engine that boasts an estimated combined 35 mpg. You won’t find all the bells and whistles of more expensive models, but it has it where it counts in the safety department. A pedestrian detection system and lane departure alert with steering assist are standard on the base LE model, as is an 8-inch touchscreen display.

5. Subaru Crosstrek

Starting price: $25,195

If you’re the outdoorsy type who’s always up for adventure but not up for busting your budget, look no further than the Subaru Crosstrek. With standard all-wheel drive and 8.7 inches of ground clearance, even the base model Crosstrek is ready to go anywhere.

You’ll get a 2.0-liter 152 horsepower engine with an estimated 34 mpg on the highway and standard safety features, including automatic emergency steering and pre-collision braking support. According to CNN, the Crosstrek also earned a spot as one of the cheapest vehicles to insure.

With car prices increasing significantly over the past few years, it’s good to know that some new vehicles have a relatively low price tag. And if you choose one with below-average insurance costs, keeping your total vehicle costs well within your budget will be a breeze.

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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.Chris Neiger has positions in Apple. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.

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You might think higher CD rates are a good thing. Read on to see why you’re at least somewhat wrong. [[{“value”:”

Now that the Federal Reserve has begun cutting its benchmark interest rate, you may find that 5% CDs aren’t as easy to come by as they were earlier in the year. But if you shop around for a great CD rate, you might still be able to score a 5% return.

And even if you can’t, a lot of CDs are paying close to 5%. If you can snag a 4.75% APY on a 12-month, $5,000 CD, that’s $237.50 worth of interest you stand to earn (as opposed to $250 for a 5%, 12-month CD) — not too shabby.

But while you might think higher CD rates are something to celebrate, the unfortunate truth is that they come with their share of drawbacks. Here are a few pitfalls of 5% CDs you should know about.

1. Higher rates will only last for so long

Sure, you can score somewhere in the ballpark of 5% on a 12-month CD today. But what happens after those 12 months are up?

CD rates are likely to keep falling as the Fed moves forward with interest rate cuts. While you might snag a return you’re happy with in the near term, come this time next year, you may find yourself at a loss for what to do with your money.

That’s why you may want to invest your money to begin with rather than put it into a 5% CD. If you wait to invest, you might lose money in the long run.

Over the past 50 years, the S&P 500’s annual return has been 10%, accounting for strong years as well as weak ones. Click here to review top-rated brokerage accounts. If you start with $5,000 today and leave it alone for 25 years, you’ll have about $54,000 if your portfolio gives you a 10% yearly return during that time.

But if you wait even one year to invest that $5,000, you’re looking at growing your balance to about $49,000. That’s $5,000 less than what you could’ve had by starting a year earlier.

So ask yourself: Is it worth giving up $5,000 to earn around $237 in a 1-year CD? Probably not.

2. Higher CD rates tend to mean higher borrowing rates

CD rates and borrowing rates tend to go hand in hand. It’s nice to earn more money from a CD. But in exchange, right now, you’re likely to pay more for a personal loan, auto loan, or just about any loan you sign. And you may be paying a higher interest rate on a credit card balance you’re carrying.

The good news is that as the Fed cuts interest rates, borrowing rates should come down. Granted, so will CD rates. But you might still come out ahead financially if it costs you much less to sign a loan or pay off a credit card you owe money on.

3. If you take an early withdrawal, the penalty could be larger

One disadvantage of CDs over savings accounts is that they commonly charge an early withdrawal penalty for taking your money out before they mature. With a savings account, you might earn less interest, but you get penalty-free access to your money whenever you want it.

The problem with 5% CDs, though, is that they could result in larger early withdrawal penalties. Say the penalty for taking an early withdrawal for a 12-month CD at your bank is three months of interest. If you’re earning 5% on a 12-month, $5,000 CD, you’re potentially looking at a $62.50 loss if you take your money out before your CD matures. And while that’s not a life-changing sum of money, it’s a large enough amount to get upset about.

If you have money you’re looking to grow on a short-term basis, then a CD is a smart bet — an even better one than an investment account, in fact, because for those, you need time to ride out stock market downturns. And if you decide that a CD is right for you, then it pays to lock in as high a rate as possible.

But also, don’t be too bummed if 5% CD rates start to disappear, because there are some drawbacks to rates being that high.

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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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Want to maximize your Costco savings this month? Read on to see how. [[{“value”:”

Shopping at Costco is a great way to save money on your everyday needs. And with the right strategy, you can lower your costs even more this November. Here are some of the smartest Costco moves to make this month.

1. Give Kirkland Signature products a try

You’ll find the Kirkland Signature name on a host of Costco products, from groceries to cleaning supplies to clothing. You might assume that Costco’s store brand is lower in quality than the brands you know and love. But that’s far from the case.

Costco is a company that prides itself on offering the best customer experience — so much so that it’s willing to take almost any item back at any time for any reason. It will also refund your membership itself if you decide it’s not giving you great value. So you can bet that it stands behind its Kirkland brand and strives to put out products that are extremely high in quality.

Another thing you should know is that Costco aims to price its Kirkland products at 20% less (at a minimum) than competing national brands. So a $10 bottle of cleaning solution with a label you recognize might cost $8 or less if you buy the Kirkland version.

Here’s an even bigger way to save on Kirkland products. Swipe the right credit card at checkout for extra cash back or rewards. Click here for a list of the best credit cards for spending at Costco.

2. Crack the store’s pricing code

Costco’s prices might seem random, but there’s actually a method to them you should know about. Costco prices that end in a seven are clearance items, whereas items that end in a nine are regularly priced.

So if you see an item for $8.99, that’s generally the typical price. If you see an item for $8.97, that’s generally a discount from the original price.

Also be on the lookout for items that end in 88. Those usually mean that a store manager has lowered the price for one reason or another. That reason could be that the item was previously opened but returned in good condition, or that the store has too many of that item and it needs to be moved off the shelves.

3. Look out for early holiday deals

These days, it’s common for retailers to introduce holiday deals in early November. And Costco is no exception.

In fact, Costco already has products that are available at lower-than-usual prices through the middle of the month. You can score $3.80 off of the store’s famous Sanders’ Sea Salt Caramel jars, which make a great holiday gift for coworkers and teachers. And you can save $4.50 on Carr’s Crackers, which you may need for an upcoming holiday party.

There’s also big savings to be had on TVs, jewelry, apparel, and more. You can check out Costco.com for a list of early holiday deals, but head to your local warehouse club store to scoop them up to save more money. Costco’s in-store prices are commonly lower than the price you’ll pay online.

Saving money at Costco this month could make your holiday expenses more manageable — or just plain be a good thing for your finances in general. So give Kirkland items a chance, pay attention to pricing codes, and be on the lookout for holiday deals that will likely continue to drop as November moves along.

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Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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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Want to join Costco? Don’t overpay for your membership. This deal could help you score a free $45 Costco Shop Card. Find out how to save as a new member. [[{“value”:”

Have you been thinking about joining a warehouse club like Costco to access members-only deals that could save you money? Many shoppers are able to keep more money in their checking accounts by shopping at the popular retailer.

But to shop here, you must pay a yearly membership fee. Now is an excellent time to join. Thanks to this membership deal, you can pay as little as $20 for your first year of membership. Here’s what you need to know.

Get $45 to spend at Costco with this membership deal

StackSocial is a website offering discount deals for products, subscriptions and memberships, mobile apps, gift cards, and more. Right now, it has a Costco membership deal that could offer savings to new members.

New members who purchase a one-year Costco Gold Star membership will receive a $45 digital Costco Shop Card. You can spend the Shop Card funds in-club at Costco or Costco.com. You must be new to Costco, or had your last membership end at least 18 months ago.

Costco’s Gold Star membership costs $65 per year, so you’ll pay the standard membership fee if you purchase this deal. But considering you’ll receive a free $45 to spend at Costco later, your first year of membership will effectively cost only $20. That’s a steal of a deal.

Costco’s premium Executive membership offers more perks, most notably 2% back on most Costco purchases (more on this below). If you prefer to become an Executive member, you’ll pay $130 to join. Eligible new Executive members who take advantage of this offer will also receive a $45 Shop Card, making the first year of membership cost $85.

Qualified new members will receive their Shop Card via email within two weeks of making their purchase. You must redeem your membership through Costco by Jan. 31, 2025 — but StackSocial encourages customers to redeem within 30 days of purchase.

This new membership deal provides an excellent way to try Costco for less money. Shopping the retailer’s exclusive deals could be a good move for your wallet.

Want to earn cash back rewards on your Costco hauls? With the right credit card, you can earn rewards. Click here to review our list of top credit cards that offer big rewards at Costco.

Which Costco membership is ideal for you?

Still deciding which membership type is right for you? Besides the annual membership fees, the most noticeable difference between a Gold Star membership and an Executive membership is that Executive members can earn rewards.

Members can earn up to $1,250 in rewards each year. If you plan to shop at Costco often and want to earn rewards, the $130 Executive membership may be a good fit.

You can maximize your rewards by using a cash back credit card to pay for your purchases. Check out our list of the best cash back credit cards to see how easy it is to earn cash back when you shop at Costco and other retailers.

If you’re not sure you’ll shop Costco enough to earn back the Executive membership upgrade fee, a standard Gold Star membership may be best. You can shop Costco’s deals in-club or online while paying less.

Are you on the fence about investing in a membership? Costco offers a 100% membership satisfaction guarantee. If you’re unsatisfied with your experience, you can cancel your membership and get a refund. This policy can give shoppers more confidence in joining.

If you need an incentive to join Costco, this StackSocial deal may be for you. Happy shopping!

Top credit card to use at Costco (and everywhere else!)

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Add on the competitive 0% interest period and it’s no wonder we awarded this card Best No Annual Fee Credit Card.

Click here to read our full review for free and apply before the $200 welcome bonus offer ends!

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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