Money Management

The penalty associated with early withdrawal from CDs could be helpful if it convinces you to keep your money invested. Learn more here. [[{“value”:”

If you’ve ever considered investing in certificates of deposit (CDs), you’ve probably heard that they have a big downside: You lose liquidity of your cash when you put it into CDs. While CDs are pretty low-risk investments and they offer great rates right now, this one big disadvantage keeps many people from buying them.

But what if that “downside” is actually a good thing for some savers? Here’s why that just might be the case.

Is this really a downside of CDs?

Every CD has a term length, often ranging from three months to five years. You’re guaranteed to get paid the promised yields for the entire CD term. But the catch is that you have to keep your money invested for that whole time. If you take your money out early, you’ll pay a penalty (and if that penalty amounts to more interest than you’ve already earned, you could lose some of your principal balance).

This is viewed as a huge disadvantage. After all, your money is trapped in the CD. You can’t take it out if you decide you need it for something else. That’s very different from a savings account, where you can take your money out at any time.

But while many people are hesitant to lock up their money, this penalty can be a good thing for some savers. Specifically, it could be enough to stop you from taking money out of your account if you don’t have the willpower to keep it there otherwise.

Let’s say you put money into your savings account to save up for a big purchase you’re planning to make next year, but you have a really hard time keeping your hands off it. You end up withdrawing a little bit here or there when there’s a big sale at your favorite store or your friend suggests taking a weekend trip.

In the end, you could find yourself without the money you need when it comes time to make your purchase. It was just too easy to take it out since you could access it at any time. If you had the money in a CD, though, you’d probably face a penalty that could cost around 90 days to 365 days of simple interest.

The threat of that fee might convince you not to take withdrawals while you’re trying to save. The penalty could be the outside influence you need to stick to your plan — just like people use outside motivators to achieve goals, like getting an accountability buddy to help them eat healthier.

Is investing in certificates of deposit right for you?

Ultimately, investing in a CD makes good sense if you have money you won’t need for at least a few months and you don’t want to put it into the stock market because your investing timeline isn’t long enough. Since you usually won’t want to put money in the market if you’ll need it in the next five or so years, CDs are a good place for the cash you’ll need for short-term and medium-term goals. For money with a longer timeline, investing via a brokerage account is a better option.

And you shouldn’t be deterred by the possibility of an early withdrawal penalty either, especially if it helps you stay motivated. Obviously, you don’t want to put money in a CD if you know you’ll have to break the term early. But if you have no solid reason an early withdrawal would be necessary, then take a look at our best CD rates list to see if one is right for you.

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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.
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Costco has a very generous return policy. Read on to see how this writer has benefited from it. [[{“value”:”

As someone who’s been shopping at Costco every week for many years, I can honestly say that I’m super impressed with the store’s offerings. Whether it’s baked goods, snacks, clothing, or home goods, I’m happy with my purchases more than 99% of the time.

But there are, of course, exceptions. Sometimes, a Costco purchase of mine won’t work out, like when I purchased milk that spoiled well ahead of its sell-by date. The good news, though, is that Costco is extremely generous with its return policy. And if you’re taking something back due to quality issues, like clumpy milk multiple days before the sell-by date, you can bet on getting a hassle-free refund — and an apology, too.

But sometimes, I feel that Costco’s return policy is almost too generous for its own good. Here are some of the wild things I’ve returned to the store for a full refund.

RELATED: The #1 Strategy for Saving Money at Costco

1. Half-eaten cheese

Years back, I bought a two-pack of feta cheese and consumed the first pack without issue. The second pack, however, grew mold well before its sell-by date, so I took it back and got refunded.

In this case, my return wasn’t so outlandish — there was a clear quality issue at hand. What I couldn’t believe, though, was that Costco refunded my entire purchase when I explained that I’d clearly eaten half of it.

I didn’t even ask for my money back in full. All I wanted was a 50% refund. But Costco’s rule is either you’re 100% satisfied or you get 100% of your money back. There’s no such thing as a partial refund when you make a return.

2. Unused burgers and hot dogs

Last year, we were hosting a barbecue and weren’t sure how many guests to expect. We stocked up on meat the day before and wound up with a ton of burgers and hot dogs left over that we hadn’t removed from the fridge or cooked.

We couldn’t freeze our extras — we were all out of room. So my husband suggested we return the unused burgers and hot dogs to Costco the next day. I didn’t think that would fly, but it did.

To be fair, there was still plenty of time before that meat’s sell-by date. But we’re talking about a highly perishable product here. I doubt Costco is able to resell returned meat because it can’t guarantee that it was properly refrigerated outside of the store.

I still feel kind of bad that we took that meat back. But I guess if that’s the policy, so be it. Also, it was the only time I’ve returned perishable food due to having bought too many groceries. Any other food-related return I’ve made has been related to early spoilage or another obvious problem.

3. A child’s dress that sat in my closet for more than 12 months

When my cousin got married years ago, I ordered a pair of matching party dresses from Costco for my twin girls. One of my daughters loved the dress, and the other one hated it — because of course. So I went and ordered a replacement dress, stuck the rejected Costco dress in the back of my daughters’ closet, and proceeded to forget all about it.

It was more than a year later when I discovered that unworn dress during a closet cleanout. I was convinced Costco wouldn’t take it back due to the amount of time I’d had it, but lo and behold, I was able to get a refund without an issue.

Know how Costco’s return policy works — and don’t abuse it

Clearly, Costco is pretty great about taking items back. But as a member, you should know that not every item is eligible to be returned. You can’t bring back cigarettes, alcohol, or gift cards. And you only get 90 days to return electronics.

You should also know that abusing Costco’s return policy could put you at risk of having your membership revoked. But you do have to go to some extremes for that to happen. Occasionally returning food on the basis of not liking it won’t cause you to lose your membership as long as you’re clearly bringing the bulk of that item back, nor will returning clothing 14 months after the fact like I did here and there.

But if you’re bringing back partially eaten food every week, Costco may start to take notice. And if you consistently return items that have clearly been used, that, too, could become an issue.

However, you should never hesitate to bring items back to Costco that are defective or to return food with a clear quality issue, like my moldy feta. Groceries are super expensive these days, and you may be on a tight budget. So there’s no need to settle for spoiled food when Costco allows you to bring it back.

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

If you’re shopping with a debit card, you could be missing out on hundreds or even thousands of dollars each year. These versatile credit cards offer huge rewards everywhere, including Costco, and are rated the best cards of 2024 by our experts because they offer hefty sign-up bonuses and outstanding cash rewards. Plus, you’ll save on credit card interest because all of these recommendations include a competitive 0% interest period.

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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. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Costco Wholesale and JPMorgan Chase. The Motley Fool recommends Discover Financial Services. The Motley Fool has a disclosure policy.

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Thanks to gas taxes and other factors, some states have lower prices on fuel than others. Check if your state is on the list, and learn other ways to save. [[{“value”:”

Gas prices can put a dent in anyone’s budget, especially when you’re hitting the road for a long drive or a summer vacation. Luckily, there are some states where you can fill up your tank without breaking the bank.

According to the AAA National Average is $3.61 per gallon as of May 14. And looking ahead, if 2024 follows last year’s trend, we can expect these prices to remain relatively flat through mid-to-late July before rising again in late summer.

However, the cost of oil isn’t always easy to predict. If prices rise sharply, we could see gas prices spike sooner. On the flip side, it’s also possible that prices could fall in the near term. The Energy Information Administration (EIA) reported gas demand has dropped from 8.66 to 8.42 million barrels per day in the last week, and oil prices have also dipped slightly.

One of the primary reasons for gas price differences is the differing state gas taxes, which can either add a significant cost per gallon or slightly lessen the financial burden. Additionally, the proximity to oil refineries and supply routes also plays a crucial role. States closer to these facilities generally have lower transportation costs, translating to cheaper gas prices. Other factors, such as environmental regulations and market demand within each state, also contribute to the variations in gas prices.

1. Mississippi: $3.07

Mississippi tops the list with the lowest gas prices in the country at $3.07 per gallon. Whether cruising down the Natchez Trace Parkway or exploring the Gulf Coast, you’ll appreciate the savings at the pump.

2. Oklahoma: $3.12

Next up is Oklahoma, where gas prices average $3.12 per gallon. Known for its wide-open spaces and scenic byways, Oklahoma is a great place for road trips. With these low prices, you can explore the Sooner State without worrying about fuel costs.

3. Arkansas: $3.13

In Arkansas, you can fill up for just $3.13 per gallon. The Natural State offers beautiful landscapes, from the Ozark Mountains to the Mississippi River. With such affordable gas, it’s easier than ever to experience all that Arkansas has to offer.

4. Louisiana: $3.16

Louisiana’s gas prices are a bit higher, but still among the cheapest at $3.16 per gallon. From the vibrant culture of New Orleans to the serene bayous, there’s plenty to see and do in Louisiana. Low gas prices mean you can spend more on enjoying the local cuisine and music.

5. Kansas: $3.16

Kansas drivers are paying $3.16 per gallon at the pump. Known for its rolling plains and historic sites, Kansas has very long open roads, some scenic. Affordable gas makes it easy to travel across the Sunflower State.

6. Texas: $3.19

At $3.19 per gallon, Texas offers some of the cheapest fuel in the nation thanks to the state’s abundant oil production and proximity to major refineries, particularly along the Gulf Coast. Whether navigating the bustling streets of Dallas or venturing through the expansive landscapes of West Texas, you can cover more ground without breaking the bank on fuel costs.

7. South Carolina: $3.20

South Carolina drivers enjoy gas prices averaging $3.20 per gallon. From the Lowcountry beaches to Charleston’s historic charm, affordable gas makes exploring the Palmetto State even more appealing.

8. Colorado: $3.21

Colorado’s gas prices are $3.21 per gallon, making it an affordable destination for road trips. With stunning mountain scenery and outdoor adventures, you can explore the Centennial State without worrying too much about fuel costs.

9. Tennessee: $3.22

In Tennessee, gas prices average $3.22 per gallon. From the music scene in Nashville to the natural beauty of the Great Smoky Mountains, there’s plenty to see and do. Low gas prices make it easier to enjoy everything Tennessee has to offer.

10. Alabama: $3.22

Alabama, where drivers pay $3.22 per gallon, rounds out the list. Alabama is a great place to explore, with its rich history and beautiful landscapes. Affordable gas means traveling across the state without spending too much at the pump.

Other tips for saving on gas

Saving money on gas is not just about where you fill up; it’s also about how you drive and maintain your vehicle. Here are some practical tips to help you maximize your fuel efficiency and save at the gas pump.

Plan your routes: Use apps like GasBuddy to find the cheapest gas prices along your route.Maintain your vehicle: Regularly inflated tires and regular maintenance can improve gas mileage.Drive smart: Avoid rapid acceleration and heavy braking to save fuel.Carpool: Share rides with friends or colleagues to reduce the number of trips you need to make.

Watch your auto insurance costs, too

For road trippers eager to explore new destinations without overextending their budgets, finding ways to cut down on auto insurance costs can make a significant difference. Here are some practical tips for road trippers looking to lower their car insurance costs.

Bundle insurance policiesIncrease your deductibleCheck for low-mileage discountsMake sure you’re not over insuredShop around for policiesTake advantage of membership and other discountsComplete an approved defensive driving course

Implementing these tips can help ensure your journey is not only adventurous but also economical in terms of insurance costs.

Finding cheap gas can make a big difference in your travel budget. By filling up in these 10 states with the lowest gas prices, you can keep more money in your pocket for your adventures. Safe travels and happy driving!

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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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