Money Management

Costco’s products have a cult-like following. But here are three that aren’t worth the hype. [[{“value”:”

Everyone has their favorite Costco products. The rotisserie chickens are legendary. The pesto is amazing. The honey is fresh as if it was just combed off the cell. It’s no wonder many of its products have a cult-like following: Even Kirkland shirts and sweaters are becoming a common sight.

Over the years, however, I’ve tried several popular Costco products and felt a little, well, cheated. I don’t have picky tastes (I’m the guy who eats three-day-old cold pizza). But with all the hype, I was a little disappointed with these three products.

1. Tires

Costco has some of the best values for new tires. It often runs promotions — like $60 off a set of four — and installation is free. You also get a five-year road hazard warranty, which comes with free tire rotations, balancing, inflation checks, flat repairs, and nitrogen inflation.

I won’t complain about the price. However, when it comes to service, Costco tires can be hit or miss.

The Costco Tire Center often has a long wait time. Even if you’re only doing a simple rotation, you might have to wait several hours to get your tire service done. You could kill time by getting your shopping done. But if your car is still being serviced, you might be stuck waiting in the food court with a shopping cart of bulk goods.

Of course, every Costco will be different, and you can book tire appointments online. Costco might charge less to your credit card, but if a less crowded tire shop down the street will price match, you might save time by going there instead.

2. Gift cards

Confession: I actually love Costco gift cards. But I’m a realist, and I know they’re a pain for most people.

First, the positives. Costco adds around 10% to 30% of value to gift cards when you buy them in prearranged denominations. For example, you can buy two Uber gift cards at $50 apiece for only $79.99. That saves you $20 right off the bat.

Now, the complaints. All of Costco’s gift cards are electronic and sent to your email address. Once you get the code, you can add the gift card to an account or app, such as your Uber account. When you can’t add the gift card to an app, you can usually use the code online or in-store to make purchases.

Why would that be a problem? I’ve encountered two. One is when you’re giving these as gifts. It can be cumbersome to make sure that the other person gets the code, especially if they’re not tech-savvy. My dad, for instance, is 74 years old and does a decent job with technology (though the weekly butt-dial is still his thing). But it was a real headache to teach him how to add an AMC gift card to his account.

The second issue is when the gift card isn’t working. In fact, nearly all one-star reviews on Costco’s gift cards have something to do with function. Sometimes the gift cards simply don’t work for you. Other times the gift cards will have their own restrictions on use — like in-person vs. online or over the phone — and which locations will take it. All in all, gift cards could save you money, but they might not be as easy to use as they should be.

3. Kirkland Signature Protein Bars

Finally, let’s end on a food item — Kirkland Signature Protein Bars.

I’ve tried every flavor of this protein. Some are OK — like the chocolate peanut butter chunk — but others taste super sweet and doughy. They’re also hard to chew and, if you leave one unopened for even a little bit, it gets harder and more difficult to bite into. They’re cheap compared to other protein bars, but really — I don’t think they’re worth a charge on your favorite Costco credit card.

One of the best parts about being a Costco member is that you can return most products for a full refund at any time after purchasing. While this isn’t true for tires and gift cards, most food and household items — including the protein bars — fall under that generous policy.

That can give you some peace of mind, knowing you can sample hyped-up products without having to drudge through it if you don’t like it.

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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.JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool has positions in and recommends Costco Wholesale, JPMorgan Chase, and Uber Technologies. The Motley Fool has a disclosure policy.

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Joining a new bank can do wonders for your finances. Read on for a few factors not to overlook when you’re picking one out. [[{“value”:”

When’s the last time you took a good hard look at your bank? Ideally, it should be making it easier to manage your money, as well as earn interest on your savings. If your bank is failing on these basic duties, it could be time for a change.

Here are four factors you should consider when you’re looking for a new bank.

1. Minimal fees

You shouldn’t have to pay to keep your money in the bank — full stop. If you’re looking for a new banking relationship, focus on those that don’t charge silly fees, like monthly maintenance fees. You can learn all about fees on the bank’s website.

And if a given bank does charge those monthly maintenance fees, make sure you can meet the requirements to have them waived — this could be receiving a certain amount of money in direct deposits to your checking account or making a certain number of qualifying transactions per month. Other costs to avoid include overdraft fees, ATM fees (more on ATMs below), and inactivity fees.

2. High APYs on savings products

If you’re looking for just a checking account, this one is less crucial — sometimes checking accounts earn interest, but money flows in and out of them so often, you’re not likely to earn much interest in one anyway. But it’s a different story if you’re hoping to open a savings account, money market account, or certificate of deposit (CD).

The average rate for savings accounts is currently 0.46%, but you can still find accounts paying 10 times that or more. We do expect rates on savings products to decrease as the Federal Reserve keeps cutting the federal funds rate over the next several months, but a good online bank is still going to pay more than a brick-and-mortar bank will. (They have fewer overhead costs.) If earning the highest yield is important to you, open accounts with an online bank.

3. Well-rated website and mobile app

The first time I watched someone deposit a paper check using their smartphone, I was astonished. So much of our regular banking tasks can be accomplished via the internet now, so it’s worth making sure your prospective bank offers customers the latest and greatest in fintech.

How can you find out if the tech is any good? Well, start by exploring the website for a list of features (which might include budgeting tools, savings buckets, and free credit score access). And don’t forget to look for information about easy ways to get in touch with customer service (perhaps via online chat).

Dig into reviews for the mobile app. If you see a lot of the same complaints repeated over and over again, they’re probably legitimate (with the caveat that people love to complain on the internet).

4. Cash access — if you need it

This is last because for many of us these days, cash is less and less crucial. According to a study by Capital One Shopping, 47.8% of American adults don’t make any cash purchases in a typical week, and I am part of this figure. I occasionally take cash out of my online savings account (via a linked checking account) using an ATM in my area, but it’s perhaps once every few months.

If you’re a more frequent cash user, you need to consider whether you’ll be able to get cash out of your new bank account. If you’re opting for a brick-and-mortar bank with branches in your area, you’ll likely be just fine. But for an online bank, do your research. Many bank websites feature a search function with a map, to show you where local in-network ATMs (meaning those without fees) can be found.

Ready for a brand-new banking relationship? Focus on these factors and you’re sure to land on the right one for you and your finances.

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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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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The three biggest reasons to regret not opening a health savings account: tax breaks! See how to get the triple tax break of an HSA. [[{“value”:”

What if I told you that you’re missing out on one of the best tax breaks and a bonus way to invest for retirement? It’s called a health savings account (HSA), and with annual enrollment coming up, you have another chance to get on board with an HSA for 2025.

But if you don’t open an HSA, or if you don’t qualify based on your health insurance plan, you’ll miss out on some big tax benefits and long-term investment growth.

Let’s look at a few reasons why not opening a health savings account is a move you’ll regret.

How to open a health savings account (HSA)

An HSA is a special type of investment account that you can use to save for healthcare expenses. But you can only open an HSA if you have a certain type of qualifying insurance plan, called a high deductible health plan (HDHP).

Your choice of health insurance plan when you sign up or re-enroll at work, or through HealthCare.gov, decides if you qualify for a health savings account. To get an HDHP (and qualify for an HSA), for 2025, you need to choose a health insurance plan with:

Minimum annual deductible of $1,650 for self-only coverage or $3,300 for family coverage; and Maximum annual out-of-pocket costs of $8,300 for self-only coverage or $16,600 for family coverage

The IRS limits HSAs to certain qualifying insurance plans like these, also called “HSA-eligible health insurance plans.” That’s because HSAs have powerful tax benefits, and the IRS rules don’t allow everyone to use them.

Indeed, an HSA-eligible health plan might require you to pay more money in out-of-pocket healthcare costs compared to some other insurance plans. But if you can afford to cover those costs, choosing an HSA-eligible health insurance plan can be a smart move for your taxes and your long-term retirement savings. An HSA can help you save a lot more money than it costs.

Triple tax breaks

The health savings account is unique, because it offers a “triple tax break.” Here are the three ways an HSA can help you save money on taxes.

1. Tax deductible contributions

The money you contribute to an HSA is tax-deductible, up to a certain limit. For 2025, you can get a tax deduction for these amounts of HSA contributions:

$4,300 for self-only coverage$8,550 for family coverage

Think of an HSA as an extra tax-advantaged account, like a 401(k) or traditional IRA, that reduces your taxable income. If you’re in the 22% tax bracket and you max out your HSA for a family health insurance plan, you’d save about $1,881 on your federal income taxes.

2. Tax-free investment growth

HSAs are not like bank savings accounts that only earn relatively low APY. You can use your health savings account like a brokerage account, and choose to invest your HSA money in a wide range of investment offerings, like stocks, bonds, and ETFs. This can help your HSA money grow for the long term.

And your HSA money grows tax-free, without owing capital gains taxes or income taxes, as long as you leave it in the account and use the money for qualified healthcare expenses according to IRS rules.

Caution: If you want to use your HSA money for healthcare expenses during the current year or the next few years, you might want to keep your HSA money in safe (but low-yield) assets like cash. Be careful when investing your HSA money in assets that might have a risk of investment loss in the short term.

3. Tax-free withdrawals for healthcare

The stated purpose of a health savings account is to use the money to save for healthcare. You can use the balance of your HSA at any time to pay for a wide range of medical and dental expenses, like doctor visits, hospital bills, prescription drugs, dentistry, and orthodontic treatment.

Using an HSA to pay for healthcare costs is like getting a built-in discount on healthcare equal to your marginal tax rate. For example, if you’re in the 22% tax bracket, and you spend $1,000 per year on healthcare from money in your HSA, it’s like you’re only paying $780 and getting $220 back in tax savings.

Use your HSA for extra retirement savings

There’s one more bonus of having an HSA, but not everyone can take advantage of it. If you don’t spend your HSA money on healthcare, you can use it as an extra tax-deferred savings account, like a traditional IRA. That’s because, after you turn 65, you can take money out of a health savings account for any purpose — not just healthcare.

Keep in mind that you’ll have to pay income tax on the money you take out of your HSA after 65 if it’s not for healthcare costs. But using your HSA in this way can still give you an extra retirement nest egg — with flexibility to use the money tax-free for healthcare in retirement, or taxed as income if you use it for other living expenses.

Bottom line

Opening an HSA can help you get big tax breaks now and into the future. A health savings account can work like an extra brokerage account or traditional IRA for healthcare, or help you save an extra pot of money for tax-deferred retirement income. Don’t miss out on the HSA “triple tax break.” Open a health savings account at annual enrollment if you qualify.

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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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Hotel elite status isn’t always worth the hassle. Check out the little-known drawbacks before you try to earn it. [[{“value”:”

Hotels like to reward loyal guests to keep them coming back. One of the ways they do that is through elite status benefits. If you stay with a hotel chain often enough, or if you open one of its travel rewards cards, you could get elite status with it.

At first, this sounds amazing. You get to check in at a special desk instead of waiting in line, breakfast is free, and your room might even get upgraded. Before you start counting up your nights and trying to earn elite status, you should know about the downsides.

1. The benefits only get good in the highest status tiers

Most hotel loyalty programs have several tiers. The highest status tiers have the exciting benefits that everybody wants, such as:

Complimentary upgrades when availableFree breakfast48-hour room guaranteesAccess to the hotel’s clubs/lounges

Elite status can be great when you’re in one of the highest tiers and getting all those benefits. It’s a lot less impressive at the lower end. If you’re in the first elite tier, the only notable perks may be free bottled water and a small number of bonus points on bookings. It’s better than nothing, but that’s about it.

2. Upgrades aren’t guaranteed

Complimentary upgrades are one of the highlights of having elite status. And to be fair, it’s always fun to find out you’re getting a better room. With some hotels, guests in the highest status tiers can even get upgraded from a standard room to a luxurious suite.

But upgrades are always subject to availability, which can be hit or miss. I’ve browsed travel forums online, and some people with elite status say they rarely get upgraded. It all depends on how busy the hotel is, so you can never count on getting an upgrade.

3. It’s hard to get into the highest status tiers

Elite status is designed for a hotel’s most loyal guests. To get into the top status tiers, you need to be a frequent guest.

For example, Marriott Bonvoy Platinum Elite status requires staying at least 50 nights in a calendar year, and Titanium Elite requires at least 75 nights. Hilton Honors Gold status requires staying at least 40 nights, and Platinum status requires at least 60 nights. Most people don’t travel nearly that much.

Now, there is a way to skip the line, so to speak. Some hotels offer credit cards that include automatic elite status. But the cards that get you into high status tiers typically also charge expensive annual fees.

4. It encourages you to book with that hotel even if there are better options available

It takes a lot of work, or paying a hefty annual fee on a hotel credit card, to get elite status. After all that, you’ll probably want to make the most of your status by staying as often as possible.

But that hotel chain may not always have the best properties at your destination. Maybe you’re looking for a place right on the beach, and only other hotels have that. Or prices at your preferred hotel chain are much higher than they are at comparable properties.

Even though having elite status is beneficial, it can also make booking travel more complicated. It’s no longer just about finding the best place to stay. It’s about finding the best place, that’s hopefully also part of a specific hotel chain.

Elite status can save you money and get you a better travel experience. But making it into the highest status tiers isn’t easy, and for the typical traveler, it isn’t worth the effort. I’d only recommend it if you travel often and you have a hotel chain you stay at regularly.

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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.Lyle Daly has no position in any of the stocks mentioned. The Motley Fool recommends Marriott International. The Motley Fool has a disclosure policy.

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