Money Management

The Federal Reserve made a rather aggressive interest rate cut in September. But it hasn’t impacted CDs as much as you might think. Learn more here. [[{“value”:”

The Federal Reserve recently cut its benchmark interest rate for the first time since early 2020, so it might seem as if the window of opportunity to take advantage of the highest CD and savings account rates since the mid-2000s might be over. But that’s simply not the case.

This was just the first Fed rate cut after a long series of rate increases, and you can still open high-yield CDs with top-rated online banks. If you’re looking to lock in today’s CD yields before the Fed cuts rates any further, check out our list of the best CD rates today.

The Federal Reserve and CD interest rates

To be perfectly clear, there is no direct relationship between CD rates and the Federal Reserve’s rate movements. In other words, there’s no rule that says a bank has to lower its CD yields if the Fed decides to cut its rate.

Having said that, they do tend to move in the same direction over time. The Fed’s rate cuts make banks’ borrowing costs lower, and this generally means banks are willing to pay less for deposits like CDs.

Short-term CDs tend to be the most sensitive to the Fed’s interest rate decisions, while long-term CD yields tend to move more gradually. The simplified explanation is that shorter-term CDs are largely based on the current interest rate environment, while longer-term CDs mainly get their yields from expectations for interest rates throughout the term.

This is why 5-year CDs generally have lower yields than 1-year CDs right now — the expectation is that interest rates are going to continue to fall over the next few years.

You can still open a high-yield CD

We’ve certainly seen some CD yields come down, but they really haven’t dropped as much as you might expect. As of this writing, 9-month CDs with yields of 4.35% or higher are still available from some well-known and top-rated banks, and on the longer-term end of the spectrum, 5-year CD yields of 3.50% or more are rather easy to find.

It’s also worth noting that if you’re willing to use the absolute highest-paying banks, CD rates have barely budged since the Fed’s rate cut. To be sure, the highest-paying CDs might not be the most convenient to open and manage.

For example, some have higher minimum deposits and/or have limited ways to deposit and withdraw money. But if your priority is maximizing yield, you can still find yields that are much higher than were available just a few years ago.

The bottom line

CD rates were at their highest level in years before the Fed decided to lower interest rates in September, and while their yields have fallen, they are still much higher than they were a few years ago. However, it’s important to keep in mind that the Fed is widely expected to keep lowering interest rates in a series of reductions lasting for at least another year.

If it does, it’s likely that we’ll see CD yields gradually head lower, so if you have cash in a savings or money market account you aren’t likely to need anytime soon, now could be a great time to consider a CD.

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.
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.

“}]] Read More 

It’s hard to go wrong with high-yield savings accounts, but there are a few things you should know. Read on to find out which moves to avoid. [[{“value”:”

High-yield savings accounts are a great place to put the money you’re setting aside for a house down payment, emergency fund, or future investments.

But as great as high-yield savings accounts are, there are a few mistakes you can make with them. Here are three and how to avoid them.

1. Not shopping for the best rate

I once went out to eat with my wife at a restaurant known for its breakfast. But I was hungry for steak that night, so I bypassed the breakfast menu and ordered their steak option instead. The waiter came out with our food shortly thereafter, placed it on the table, and quietly said under his breath (but loud enough for me to hear), “You came to the wrong place for steak…”

He quickly walked off, and, as he suggested, I ate a subpar steak instead of great breakfast food.

What does that have to do with savings accounts? It’s not hard to find a bank that will pay you an interest rate, just like it’s not hard to find a restaurant that serves steak. But many banks pay you a meager interest rate while something much better is offered elsewhere.

It’s usually best to choose an online bank to get the highest rate. Some of them pay annual percentage yields (APY) of 4% or 5% right now, compared to traditional banks that may be as low as 0.01%.

Good news! We’ve done the research for you. Click here to see our top picks for high-yield savings accounts.

2. Paying unnecessary fees

No matter what savings account you choose, there will likely be some type of fee. Many times, you can avoid some of the fees, but you should read the fine print before picking an account.

For example, most high-yield savings accounts from online banks don’t charge monthly maintenance fees. However, some do, and you may be required to maintain a minimum monthly balance to avoid the fee.

Additionally, some online banks charge a fee for withdrawing too much money in any given month. These are sometimes called “excessive use fees,” and they range between $1 to $15.

I’ll also mention here that some high-yield savings accounts may require you to have a minimum balance to receive the best rate. It’s not a fee, of course, but not maintaining the minimum balance — which could be $5,000 in some cases — could result in a lower APY.

3. Relying too much on it

For a long time, I mistakenly believed that investing money was only for rich people. I thought that if you have a little extra money, then the best thing you can do is put it into a savings account for safekeeping.

That’s not a bad strategy if you’re saving for a house down payment, building an emergency fund, or stashing cash for future vacation plans. But if you’re relying on your savings account for your retirement, you should seriously reconsider.

The S&P 500 has a historical rate of return of 10.2%, double the return of some of the best savings accounts available today. There’s no guarantee you’ll earn that rate, but it’s a good metric for showing the earning potential of investing your money.

Related: Not sure where to get started with investing? Click here to see our top brokerage account picks.

Here’s what $10,000 in an S&P 500 index fund could potentially earn over 10 years, compared to a 5% APY in a high-yield savings account over the same period:

Let’s drive this point home just a bit further, but with a 30-year investment horizon this time. Here’s how three decades of saving vs. investing turns out:

As you can see, investing your money in the S&P 500 over 30 years could potentially earn you four times more than in a savings account! It’s worth noting that while S&P 500 returns aren’t guaranteed, neither are savings account rates (which are unusually high right now), and you could owe taxes on returns from both accounts.

High-yield savings accounts are a great place to store your cash, but you should shop around before choosing one, read the fine print for potential fees, and opt to invest your money if your goal is to earn as much as possible. Oh, and remember that it matters where you buy the steak.

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.
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.

“}]] Read More 

Rate drops take time to trickle down to consumers. Keep reading to learn how long you can expect to wait for lower rates. [[{“value”:”

Now that the Federal Reserve has cut the federal funds rate — the rate at which banks borrow money from each other — many of us may be thinking the same thing: How does this impact me? When will getting a mortgage or a car loan become less expensive? When can I expect to see the interest rates on my credit cards fall?

In other words, when will lower rates trickle down to make my life easier? Let’s take a closer look.

It’s sometimes a slow drip

As soon as the Fed announces a new federal funds rate, it goes into effect immediately. However, the time it takes to trickle down to consumers varies based on the type of borrowing you hope to do.

Mortgage rates

More than with other loan types, the time it takes new mortgage rates to trickle down to consumers is tied to other factors. It may depend on whether you hope to refinance your mortgage or buy a new home.

If you plan to refinance your current mortgage, the refinance rates should drop shortly after each Fed announcement. That’s because mortgage lenders are competing for your business.

However, if you’re buying a home, you may have to wait a bit longer to find a rate that tempts you. As long as demand exceeds supply, mortgage lenders don’t have to compete for customers to the same extent and may not be as inclined to lower their rates as quickly.

Another reason there may be a delay is that many lenders heard rumblings that a Fed cut was on the way and had already factored the first cut into their current rates. As more cuts arrive, you should see a more dramatic drop in rates.

Thinking about buying a home? Click here to learn more about the best mortgage lenders on the market.

Auto loans

While you may see advertised auto loan rates drop immediately following a Fed announcement, your actual rate depends on several other factors, including your credit score, down payment, income and debts, and loan term. In other words, some car buyers will enjoy a steeper rate cut than others.

Credit cards

There’s no denying that credit card interest rates are typically much higher than other consumer loan rates. You would probably have to take out a payday loan to find a higher rate. While experts say having credit card debt will get slightly cheaper thanks to lower APRs, don’t expect it to be by much.

If you’re carrying high-interest credit card debt, your best move is to pay it off as quickly as possible. Let’s say you have a balance on a card charging 22% interest. Paying that card off is like putting those interest payments directly into your savings account.

The bumps and bruises of our economy

Most of us long for rock-bottom interest rates, but the Fed will continue adjusting rates upward and downward forever. It’s built into our economic system. Simply put, the Fed’s job is to promote financial stability.

To illustrate, consider what happened during the pandemic. Very few people on Earth had ever experienced a global pandemic on the scale of COVID-19, and the U.S. government, afraid that the economy would collapse, turned to the Fed.

The Fed lowered the federal funds rate to a range of 0% to 0.25% in an effort to keep the economy chugging along, and it worked. However, the historically low rates also led to inflation. With cheap credit, people were willing to pay far more for houses, cars, and other consumer goods. It wasn’t until the Fed raised interest rates that inflation began to cool.

And so it goes — rates go up and come back down, depending on what the economy needs at that time. While it can be discouraging, it helps to remember that whatever is going on with the interest rates at this moment will not last forever.

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.
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.

“}]] Read More 

Starting to think about booking holiday flights? Make sure you compare airfare prices first. Find out how Google Flights can save you money on holiday airfare. [[{“value”:”

Many people travel to visit friends and family during the winter holidays. It can be a great time of year to gather together, but travel costs can add up quickly if you’re not careful. If you’re leaving town for the holidays this year, take advantage of opportunities to save money on flights.

It may be easier than you realize to save on airfare. You can use free online tools to avoid overspending on plane tickets so you can travel without depleting all the funds in your checking account. Here’s how you can use Google Flights to find cheap holiday flights.

Google Flights can save you money on airfare

Google Flights is a free price comparison tool that makes it easier to find cheap flights. You can search for flights across multiple carriers and compare options. Various included search filters can help you narrow down your search results to find your ideal flight.

You can choose whether you prefer nonstop flights or a certain number of connections, the time of day you prefer to depart, and by ticket class. You’ll then be presented with available flight options that meet your search terms and their prices to help you decide which is best.

Google Flights also includes date grid and price graph tools to help you find the best departure and arrival dates. You can find out which dates are the cheapest to fly.

If you have some flexibility, these tools can help you save big. Once you’ve decided which flights work best for your needs, you can book your tickets directly on the airline’s website.

Want to maximize your savings? We suggest using a travel credit card to pay for your travel purchases. You can earn rewards and redeem them for free flights and hotel stays, which can save you money on future vacations.

Ready to earn travel rewards? Click here to review our curated list of the best travel credit cards with big rewards.

Google makes it easy to monitor flight prices

Will flight prices change before you book? Google can let you know. Price tracking is another feature that Google Flights offers. You can enable price tracking after you search for flights for your preferred dates. You can enable alerts for specific travel dates or any dates. Here’s how:

Search for your desired flightsAfter the results load, toggle the “track prices” buttonGoogle provides two options: toggle your chosen dates or “any date”

Once you enable price tracking, Google will email you when flight prices change. This can help you stay informed if flight prices become more costly or more affordable. Since you won’t have to monitor prices manually yourself, this tool can save you time.

Earn rewards as you travel the world

In addition to saving money by booking cheap flights, many travelers like to earn rewards. One option is to join free hotel and airline loyalty programs.

You can earn rewards when you fly with your favorite airlines or book stays with preferred hotel brands. Redeeming your rewards for free travel can allow you to maximize your vacation budget.

Many loyalty programs also provide travel perks to eligible travelers. You may qualify for free seat upgrades, early boarding perks, complimentary room upgrades, or free hotel amenities. Benefits like this can improve your vacation experience.

Another way to get rewarded when you travel is to use travel rewards credit cards to pay for your travel bookings. Earning rewards could make it easier for you to travel more affordably, both over the holidays, and all year round.

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.
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.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

“}]] Read More 

Costco and Sam’s Club can help you save money on gift card bundles. Find out if Sam’s Club has better offerings for you. [[{“value”:”

Although the rate of inflation has slowed down nationally, prices in my area still remain frustratingly high. Rewards credit cards have helped my budget, but some expenses just refuse to be toned down.

One way to combat stubbornly high prices is to buy gift cards at Sam’s Club or Costco. Many of these gift cards have higher values than their price ($100 of value for a price of $70, for example), offering you instant savings.

In the past, I’ve been loyal to Costco’s gift cards. But I’ve come to realize that Sam’s Club deserves attention, too. Whether you’re a member of both warehouses, or trying to decide between the two, here’s why you might want to buy gift cards at Sam’s Club.

1. Sam’s Club has more variety — by a lot

On its website, Costco sells gift cards to roughly 76 different retailers in my area. These retailers include many fan favorites, like Moe’s Southwest Grill, Panera Bread, Southwest Airlines, Domino’s, and Uber. It also has gift cards to local stores whose availability will depend on your ZIP code.

Meanwhile, Sam’s Club sells over 400 gift cards online. Some of its selection overlaps with Costco — it also sells gift cards to Southwest Airlines and Domino’s — plus others that Costco doesn’t sell, like Starbucks, H&M, and PetSmart.

What I like about Sam’s Club is that it sells gift cards to stores that could be considered essential spending. For example, if you count clothes as essential spending, you can buy gift cards to Old Navy, GAP, and Banana Republic, among other clothing retailers. Meanwhile, Costco’s gift cards are usually — though not always — for discretionary purchases, with no clothing stores in its mix.

Side note: Cash back credit cards on Sam’s Club purchases can add to the gift card savings. Check out our curated list of best cash back credit cards to see if you’re missing out on extra savings.

2. Sam’s club’s gift cards have smaller values

Costco gift cards offer more value upfront. Typically, you can save about $10 to $30 per gift card package. But those savings can come at a high price: Most will cost you at least $70, with no option to buy smaller gift card denominations.

Sam’s Club won’t save you as much money on gift cards as Costco will. However, you can buy smaller denominations at Sam’s Club. For example, you can buy different Domino’s gift card packages at Sam’s Club: $45 value (price: $42.98), $75 value (price: $65), and $100 value (price: $75). Meanwhile, Costco only sells one option: $100 value for $74.99.

To be sure, the smaller the denomination, the smaller the value. In the example above, paying $75 for a $100 gift card means you’re saving $25 (or getting 25% of value). Paying $42.98 for a $45 gift card means you’re saving $2.02 (or getting about 4.5% of value). On the other hand, if you plan to spend, say, $50 at Domino’s, a higher denomination might be unnecessary.

3. Physical gift cards can be sent to you

If you’re buying Costco’s gift cards online, you’re usually purchasing an electronic gift card. Though you can buy physical gift cards at Costco warehouses, Costco will rarely send you a physical gift card in the mail.

To be sure, many of Sam’s Club’s online gift cards are also electronically delivered. But several can also be mailed to you as a physical card. For example, the Wendy’s $60 gift card (a multipack of four $15 gift cards) can be sent to your mailing address, as can the Starbucks $40 gift card bundle (a multipack of four $10).

Why does this matter? Well, if you’re giving these cards as gifts to multiple people, then you’ll have a physical card to give. For example, if you want a gift for your kid’s teachers, you could dish them out from the multipack. Aesthetically, this might look nicer than stuffing a greeting card with a printed-out barcode, although, to be fair, the value doesn’t change with the method.

Sam’s Club makes it easier to pay

Sam’s Club accepts all major credit cards. Unlike Costco, which only accepts Visa cards, this can open the door to maxing out cash back. Although Sam’s Club has its own credit card, it doesn’t earn cash back on gift cards.

To be sure, Costco’s gift cards offer more value, even if the selection is limited and the denominations high. But if it doesn’t sell gift cards to places of interest, Sam’s Club might have more choices to your liking.

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

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

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.The Motley Fool has positions in and recommends Costco Wholesale, Starbucks, Uber Technologies, and Visa. The Motley Fool recommends Southwest Airlines. The Motley Fool has a disclosure policy.

“}]] Read More 

I rely on a laptop to earn money. Here’s why I’ll check out Costco when I’m ready to replace my current one. [[{“value”:”

As a freelance personal finance writer, I rely on my laptop to do my job. It doesn’t matter if I’m doing my job from my home office, a soccer field while I wait for my kids’ practices to wrap up, or any other random place. As long as I have a laptop and an internet connection, I can be productive.

But the laptop I’m using now is getting old and is starting to show signs of wear. I’ll probably need to replace it in the very near future. I plan to turn to Costco once I’m ready to take that leap, provided I find a good price on the model I land on — whatever that happens to be.

Costco carries a wide variety of laptops. Some are lower-end, and some are higher-end models you might pay over $1,500 for.

I’m looking for a laptop that isn’t bottom of the barrel, since I’ll be reliant on it to do my job. But I also don’t need the fanciest one available.

To be clear, if I decide on a certain laptop that Costco is offering for $799 but another store has it for $649, I’m going to go with the other store. There’s no sense in paying $150 more for the same item. But if the price is the same or comparable for the model I ultimately choose (more on what I mean by that in a bit), then I plan to go with Costco for these reasons.

1. Free tech support

My husband is a brilliant network engineer who has solved complex technical problems for big companies many times over. Yet when I need help with a simple laptop issue, his response tends to be “I dunno.” (That’s shorthand for “Sorry, but I don’t want to deal with this.”)

The great thing about buying a laptop from Costco is that I don’t have to bug my husband for tech support (which, to be fair, I feel bad doing because he works long hours and deserves a break). My purchase gives me access to that for free. So whether it’s help setting things up or navigating a problem, I can turn to a resource that can’t simply shrug and say “I dunno” when I reach out for assistance.

2. A free second-year warranty

Even though I won’t be buying the most expensive laptop, I don’t want to throw my money away. The nice thing about buying electronics from Costco is that you get a second-year warranty for free. This means I’m guaranteed to have my new device last for 24 months at a minimum without having to buy a new one.

3. Extra time to make a return

Costco may not be the only retailer offering a great price on the laptop I ultimately choose. But its return policy tends to be superior to most stores.

Amazon, for example, gives you 30 days to return most items, and that generally extends to laptops. But at Costco, you get 90 days to return electronics. This gives me time to try out a new laptop and adjust to it. But it also gives me some recourse if I find that the laptop in question isn’t working out for me.

Remember, I’m someone who cannot afford to be slowed down by a laptop that doesn’t end up fitting the bill. So this particular perk is a big draw for me. And I’m willing to pay a little bit more for a laptop at Costco to get this benefit, even if I might save $20 or $30 at another store.

4. Cash back with my Costco Executive membership

One final benefit of buying my next laptop at Costco is that as an Executive member, I get 2% cash back on my purchases. Granted, this isn’t exclusive to laptops. Most items are eligible for that bonus cash.

But that’s another reason I’m willing to pay a little bit more at Costco for a laptop I can find slightly cheaper elsewhere. Not only am I paying for the perks above, but I’m making a percentage of that back anyway since my Executive membership puts cash in my pocket.

For example, say I find a laptop at Costco for $649 that another store has for $629. I’m getting about $13 back with my Executive membership. So instead of paying $20 more, it’s like I’m paying $7 more for a longer warranty, tech support, and a more flexible return policy. That reads like a good deal to me.

Also, if I’m smart about the credit card I use to buy that laptop, I can potentially pocket even more cash back. Click here for a list of credit cards offering excellent rewards for Costco shoppers.

I know I have plenty of choices for buying my next laptop. But unless I find a notably better deal elsewhere, I plan to turn to Costco.

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

We love versatile credit cards that offer huge rewards everywhere, including Costco! This card is a standout among America’s favorite credit cards because it offers perhaps the easiest $200 cash bonus you could ever earn and an unlimited 2% cash rewards on purchases, even when you shop at Costco.

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.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. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

“}]] Read More