Money Management

Looking for the best place to put your long-term savings right now? CDs and Treasury bonds are both good options. Find out how to decide inside. [[{“value”:”

Well, it happened. The Federal Reserve lowered its benchmark interest rate last month, and is expected to do so again at its next meeting. That means that we all really need to be thinking harder about where to keep the cash we’re saving for a rainy day or a big purchase.

For a lot of people, certificates of deposit represent the safest possible option for failsafe savings. The problem is that as interest rates drop, certificate of deposit rates will follow — and they’ve started falling already.

Another super safe option is Treasury notes and bonds, which could be a good choice for a lot of savers, depending on the purpose of their savings and what they intend to do with it. Let’s take a look at both and see which is the best for your savings.

Certificates of deposits: Pros and cons

A certificate of deposit is a great place to stash your cash if you want to secure an interest rate for a shorter term. Let’s say you’ve put extra cash away for your child’s college education and you just want to park it for a few years, check out high-yield CDs like the ones we recommend here at The Ascent.

Since you lock your rate when you buy your CD, you never have to worry that it will drop or your return will somehow be less than you expected, and if the bank fails, the FDIC has you insured for up to $250,000. You can draw interest from your CD, as well, or choose to roll it back in (called compounding), so it can grow even faster.

As of Oct. 1, 2024, the Federal Reserve Bank of St. Louis has measured 12-month certificates of deposit average interest rates at 4.38%, 24-month rates at 3.91%, and 60-month rates at 3.71%. CDs generally compound monthly, so that would yield you the following returns over each term if you compounded your interest earnings.

If you expect interest rates to continue to fall for the longer term, a CD is a good way to lock in your savings interest. The longer the lock, the lower the rate, generally, but you’re taking a chance that rates will fall even further than your lock by choosing a shorter CD during a time of rate cuts.

If you have money you want to see grow, but you can’t tie it up forever, a CD might be a great choice for you.

Treasury notes and bonds: Pros and cons

If you want to lock in your rate for a lot longer than five years, you can instead opt for Treasury notes or bonds. They’re essentially the same product, just with different lock lengths. Notes are moderate-length investments: currently, Treasury notes have a 10-year term. Bonds are a longer investment, with 20- or 30-year options currently on offer.

A Treasury note or bond is a loan you make to the U.S. government, and in exchange, it pays you substantial interest, compounded semi-annually. You lock your rate in when you buy your bonds, just like when you buy a CD, but unlike CDs, you can also sell your bonds early if you need to exit your position with no direct penalties.

The market for that bond might not be there, meaning you may not be able to recapture all your money when you resell, but sometimes you can come out with quite a bit more, too, depending on how the bond is structured and what the appetite for bonds is like at the time.

The other neat thing about notes and bonds is that when you buy them, it’s at a discount to their face value, which means that you may buy a $100 bond for $95. This is additional growth on your investment on top of what interest you receive.

So, if you buy a 10-year $10,000 Treasury note for $9,500 with 3.875% interest, at its maturity, you get $10,000, and you’ll have earned interest all along the way, which should be about $4,700. Making your total return about $5,200.

Treasury notes and bonds are ideal for people who can invest in CDs, but want a much longer term. They’re good for your retirement savings, for example, because the only way they can fail is if the government fails, and if that happens, we have much bigger problems on our hands. This makes them handy for long-term budgeting when you’re living off cash you’ve saved

Which is better?

There’s never a clear-cut situation where either a CD or a Treasury note or bond is always the better choice. You have to consider your financial goals and how much liquidity you need in what kind of time frame.

They’re both great tools for holding on to higher interest rates in a falling interest environment, though, and can keep your returns high when everyone’s high-yield savings accounts are floundering.

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 

Perfection isn’t the goal. Read on to find out what credit score will give you the best rates and offers. [[{“value”:”

I know what it’s like to have bad credit and the feeling of being rejected for a loan and kept from the lowest borrowing rates.

It stinks.

Some late credit card payments and one bill sent to collections led to years of building back my poor credit. It took consistent on-time payments and keeping a low credit utilization to reach my current credit score of 769.

The good news is that you don’t need perfect credit to access the best offers and interest rates, and just like I did, you can rebuild your credit if it’s less than stellar.

Stop striving for a perfect 850 score

Here’s a little credit secret: You don’t need a perfect score to get the best interest rates.

In general, a credit score of about 750 is all you need.

Borrowers with that score have above-average credit, and Experian says it will likely give you access to the best financial product offerings and the lowest rates. While there are several different credit rating systems, here’s how the FICO® Score system looks:

Many things can negatively affect your credit score, including (but not limited to):

Using too much of your available creditMaking late paymentsMissing a paymentApplying for too many credit accountsClosing credit accountsDefaulting on a loanHaving an account in collectionsBankruptcyHaving errors in your credit history

Credit card balances with high interest can devastate your finances. Click here for our top picks for the best balance transfer cards, which may help lower your monthly payments and make paying off balances easier.

The good news is that rebuilding your credit is pretty simple; it just takes discipline and time.

How to build good credit

When my credit was poor, I didn’t use any outside service to rebuild my credit or pay anyone to help fix it (some of those businesses can be scams, so be wary). Instead, I just paid my bills on time and didn’t use too much of my available credit.

It was a slow process that took years, but it’s the best way to improve your score. Here are the best ways to begin rebuilding your credit:

Pay your bills and loans on timeDon’t use all of your available credit (under 30% is good, under 10% is best)Keep your oldest accounts open; a long history helps your scoreFix any errors on your credit report

If your credit score isn’t where you want it to be, you can get a free credit report at AnnualCreditReport.com to check for errors and dispute incorrect information with the credit bureau that reported it.

My credit score still goes up and down depending on how much available credit I’ve used, and it recently changed a bit after I applied for a mortgage. With my current score in the “very good” range, I don’t think too much about it.

But I still remember my stress and frustration of having a low score and being left out of the best offers and interest rates. The good news is that you can make it through that process just like I did, with a little effort and a lot of patience.

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 frustrating when your credit card gets declined. Find out why this can happen and what you can do to fix it. [[{“value”:”

Does anyone else get weirdly embarrassed when their credit card is declined? I always feel as if I wasted the cashier’s time, even though it takes two seconds for them to redo the transaction so I can pay with a different card.

Declined transactions happen from time to time. And despite the embarrassment they can cause, they aren’t a big deal. But it’s good to know why credit cards get declined and how you can fix this when it happens to you.

1. The transaction tripped your card issuer’s fraud detection

Every credit card issuer has internal systems designed to prevent fraud. They don’t want to lose money, and they don’t want their cardholders to lose money.

One of the ways card issuers prevent fraud is by flagging suspicious transactions. For example, if all your purchases have been for less than $300, your card issuer would take notice if there was suddenly an attempted purchase of $5,000.

If an attempted purchase trips your card issuer’s fraud detection, it will likely notify you by text or email. It may also reject the transaction as a security measure. To fix this, contact your card issuer, verify your identity, and confirm that it’s you who’s attempting to make the purchase.

2. You’re trying to use your card abroad

Using your card abroad often falls under the “suspicious transactions” category. Your card issuer doesn’t know whether it’s you or an international crime syndicate.

Some card issuers let you set up travel alerts. You notify them about where you’ll be going and when. That way, it doesn’t look sketchy when you use your card halfway around the world.

Not all card issuers offer travel alerts, though. Some say it’s not necessary, as they use big data to determine which transactions are valid and which transactions aren’t. Whether or not you set up a travel alert, you can always contact your card issuer if a purchase you’re attempting is getting declined.

There’s one other thing to watch out for when traveling abroad: foreign transaction fees. Many credit cards charge an extra 3% every time you use them outside the United States. Instead of paying extra, explore our list of travel credit cards with no foreign transaction fees (and other valuable travel perks).

3. You forgot to activate your card

When you get your credit card in the mail, you may need to activate it. You don’t always need to do this — some cards now arrive already activated. But many still require activation first, which you can do online or by phone. If it’s required, it will say so in the letter you receive with your card.

If activating your new card slipped your mind, then it will most likely be declined when you try to use it. Once you get it activated, you shouldn’t have any more issues using it.

4. The transaction would exceed your card’s credit limit

Credit cards have credit limits, which are the maximum balance they can have. You can find this information in your online account, and it’s listed on the letter that comes with your card in the mail.

Card issuers normally deny transactions that would push a card’s balance over its credit limit. For example, if your card has an $800 balance and a $1,000 credit limit, you wouldn’t be able to make a $400 purchase. You’d need to pay down the balance first or ask your card issuer for a higher credit limit.

Looking for a credit card with more spending power? Check out our curated list of high limit credit cards. These cards are known for giving out high credit limits. Note that your income and creditworthiness are also important factors in the credit limit you receive.

Card issuers can reject transactions for all kinds of reasons, but in most cases, it’s due to one of the issues above. When in doubt, contact your card issuer, and you should be able to get to the bottom of it.

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 

Americans view a net worth of $2.5 million as rich and $778,000 to be financially comfortable. Find out how you can become rich — or at least richer. [[{“value”:”

The word “rich” means different things to different people. One definition is being debt-free and having enough money to do the things you want. Another is that it’s a form of financial freedom — being able to escape the daily grind and follow your dreams. Others put a dollar amount on it.

What’s for sure is that being rich has more to do with the value of the investments in your brokerage account than the type of car you drive. And you don’t have to win the lottery or inherit money to get rich — it’s within reach for many of us. Indeed, many of today’s millionaires got rich by consistently investing part of their salary.

How to measure wealth

One concrete way to measure wealth is your net worth. This is the difference between your assets and your liabilities. You calculate it by adding up the total value of assets, like your home and investments, then subtract everything you owe in loans, mortgages, and credit cards. It can offer a useful snapshot of your financial situation, particularly if you track it over time.

You can boost your net worth by maxing out your annual contributions to tax-advantaged accounts such as IRAs. Some brokerages, like Robinhood, will even give you a 1% match on the money you put in. Click here to learn more about this brokerage.

Americans believe $2.5 million would make them wealthy

A recent Charles Schwab Modern Wealth Survey found that Americans think you need a net worth of $2.5 million to be wealthy and $778,000 to be financially comfortable.

As you’ll see below, the respondents’ idea of wealth varied dramatically by generation.

On top of this, $1 million has a different value if you live in New York City than, say, rural Indiana. The Schwab survey showed that residents of San Francisco put the wealth threshold at a whopping $4.4 million. Dallas residents would consider themselves wealthy if they had $2.2 million.

These three steps will help you build wealth

A lot of aspects of getting rich come back to one deceptively simple idea: Spend less than you earn and invest the difference. The bigger the gap between your income and your expenses, the more you can use to build wealth. Of course, this is easier said than done.

1. Increase your income and/or reduce your spending

Income is important, but it doesn’t define your wealth. You might earn a lot of money, but you won’t build wealth if you don’t save or invest any of it. Similarly, you might earn less, live a frugal lifestyle, and still manage to put aside a decent chunk of cash every month.

Look through your recent expenses to find non-essential spending you might want to cut back on. If you can’t see any wiggle room, consider ways to increase your earnings. That might be a side hustle, extra hours at work, or even transitioning to a better-paying job.

The name of the game is finding money to invest and doing it consistently. Some financial advisors suggest saving 15% of your income. If that feels impossible, start with a smaller amount.

2. Use tax-advantaged investment accounts

Investing involves buying assets you believe will grow in value. That might include real estate, shares, bonds, ETFs, or commodities like gold.

There may be years when your portfolio loses value, but the idea is that your investments will grow over time. For example, the S&P 500, which contains the largest 500 publicly traded U.S. companies, has generated average annual returns of around 8% over the last 100 years.

If you want to build wealth for retirement, tax-advantaged accounts such as 401(k)s or individual retirement accounts (IRAs) can boost your portfolio. 401(k)s are work-based plans, and some come with the benefit of employer matching. IRAs are open to everybody. Depending on what type you use, you can either reduce your tax bill today or make tax-free withdrawals once you stop work.

3. Give it time

Time is a powerful force when it comes to building wealth. The longer you can leave your assets to compound, the more they will start to work for you. Time also evens out any bad years in the stock market.

To put it in real money, if you invested $500 a month and earned an average annual return of 8%, here’s how your portfolio might grow each decade:

Bottom line

Many of us would love the financial freedom of being rich and not having to worry about bills. That might mean building a net worth of $2.5 million, but the figure depends on your lifestyle. What matters most is believing you can build wealth and taking steps in that direction.

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.Charles Schwab is an advertising partner of The Ascent, a Motley Fool company. Emma Newbery has no position in any of the stocks mentioned. The Motley Fool recommends Charles Schwab and recommends the following options: short September 2024 $77.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.

“}]] Read More 

Putting your money to work could leave you with more of it. Take a look at some great options to explore this month. [[{“value”:”

A year ago today, inflation was still pretty rampant. Many people could barely cover their living costs. But in recent months, inflation has been cooling, which means you may be enjoying more wiggle room in your budget.

You might also have some spare cash to work with. If so, here are a few great places to consider putting it this October.

1. A savings account

Any funds you have earmarked for emergency expenses should sit in a savings account. And if you’re not sure what you want to use your money for, a savings account is a good bet because it gives you the flexibility to take withdrawals at any time.

Now, you may have heard that interest rates are falling, and that’s true. It’s also something that’s likely to increasingly impact savings accounts in the coming months.

But the good news is that savings account rates are currently still pretty strong. And if you’re not happy with the rate you’re getting on your savings, check out our list of top savings accounts today.

2. A CD

The nice thing about certificates of deposit (CDs) is that they allow you to lock in a guaranteed interest rate that remains in place until their maturity date. That’s important at a time when interest rates are falling.

A few months ago, it was easy enough to find a 5% CD. Now, those are a bit harder to come by. But many CDs are still paying close to 5%.

That may not be the case for much longer, though. So if you have money you’re saving for a shorter-term goal, a CD could be a good bet. Click here to view some of the top CD rates today.

3. A brokerage account

A CD is a great place to put money you’re willing to part with for a year or two — or even four or five. But if you have money you’re earmarking for a goal that’s way off in the future, like paying for college or funding your retirement, then investing it is a smart bet.

While some CDs may be paying close to 5% today, the S&P 500’s average return over the past 50 years is 10%, accounting for both strong and weak years. And remember, while you can get almost 5% out of a CD today, that may not be the case for much longer. On a long-term basis, investing your money is your best bet for growing it into a larger sum.

In fact, if you invest $1,000 today and score a 10% return on your money every year over the next 40 years, you’ll end up with a little over $45,000. If you like the sound of that, check out our list of the best brokerage accounts.

It’s a great thing to have extra money to work with. Now all you need to do is choose the right home so your money benefits you even more.

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 

Costco offers more than just discounted groceries. Discover why signing up for a membership could benefit you big time. [[{“value”:”

Even if you’ve never shopped at Costco before, you’re probably aware that it’s known for its discounts on bulk grocery purchases. But a Costco membership gives you so much more than low-cost food for your fridge and pantry. Here are some lesser-known benefits you might appreciate as a member.

1. Discounted gift cards

Giving gifts is a nice gesture. Sometimes, it’s also obligatory. But either way, it’s often easier to hand over or email someone a gift card than search high and low for the perfect item.

The great thing about Costco is that it sells gift cards below their face value. For example, right now, Costco is offering a pack of five $15 Subway gift cards for $59.99. So if you’re looking for a token gift for your child’s soccer coaches, for example, you could hand over a couple of these and keep the rest for yourself if Subway is a place you like to pick up lunch.

In fact, it pays to see if Costco offers gift cards to some of the businesses you spend money at often — even if you don’t need to buy them as actual gifts. Loading up on discounted gift cards could save you quite a lot over time.

And if you like the idea of saving money, click here for our top list of credit cards that offer great rewards for Costco shoppers.

2. Affordable, high-performance gasoline

Filling up your car at Costco could save you money on gasoline. Costco offers some of the cheapest gas prices around.

What’s more, Costco’s gas is exceptionally high in quality because it carries the TOP TIER designation. It’s designed to clean your engine and lead to better performance. You might save money not just on a lower per-gallon cost, but also, via improved gas mileage.

3. Easy returns

Costco has one of the most generous, flexible return policies among retailers. In a nutshell, you can return almost any item at any time for a complete refund. And this policy even extends to food you’ve opened and don’t like, or don’t get great value from.

Say you buy a bulk bag of Costco chips and the flavor just doesn’t suit you. If you bring the bulk of the bag back, Costco will give you your money back for it. Similarly, if you buy a carton of berries with a sell-by date that’s five days away, and after two days some of those berries get moldy, you can bring them back for a refund.

At a regular supermarket, you might be out of luck in either scenario, which means you’ve wasted your money. At Costco, you can enjoy added savings by avoiding that sort of waste.

These are only a few of the hidden benefits Costco members get to enjoy. It pays to learn more about the perks of a Costco membership if you’re thinking about joining. And even if you’re a paying member already, it never hurts to dig around to make sure you’re truly maximizing your Costco savings.

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.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.

“}]] Read More