Money Management

Cashing out a CD before its maturity date can result in a penalty. But read on to see if you can get around that. [[{“value”:”

I like free money in just about any shape or form. And if you ask me, interest is one of the best types of free money you can get. You’re not doing anything to earn it — you’re simply sticking money in a bank account and getting paid to have it sit there.

Now, you could keep your money in a regular savings account. And these days, you may be looking at about 4% interest. But with many CDs paying above 5%, you may be inclined to chase an even higher interest rate on your money.

Plus, the upside of choosing CDs is that your interest rate is guaranteed. With a savings account, your rate could drop without notice, leaving you with less money.

Unfortunately, though, when you open a CD, you have to commit to keeping your money where it is for your CD’s duration. Withdraw your cash early, and you’re generally looking at a penalty. But there may be a way to avoid an early withdrawal penalty on your next CD. In fact, here are three potential solutions for getting out of paying one.

1. Ladder your CDs

Laddering CDs means opening various CDs with different maturity dates instead of putting all of your money into a single CD. The benefit is that you have money coming due at various points during the year, making it less likely that you’ll have to cash out a CD early and take a penalty.

Let’s say you take $4,000 and instead of opening a single 12-month CD, you open four $1,000 CDs coming due every three months (in other words, a 3-month CD, 6-month CD, and so forth). If you then find yourself up against an $800 car repair you emergency fund can’t cover, but you have your 3-month CD coming due in a week or two, you may be able to get your car fixed, charge the expense on your credit card, and pay it off before you lose money to interest.

On the other hand, if you take your entire $4,000 and put it into a 12-month CD, in this example, you may have to withdraw it early because you can’t wait months to fix a car, and you shouldn’t wait months to pay a credit card bill because of all the interest you’ll rack up. So here, laddering could be your ticket to avoiding an early withdrawal penalty.

2. Open a no-penalty CD

A no-penalty CD works just the way you’d imagine it does. You open a CD with a specific interest rate and term, but there’s no penalty for an early withdrawal.

A no-penalty CD might seem like a great solution, but there’s a big drawback — you probably won’t earn as much interest with one of these CDs as a CD where there could be a penalty involved. You’ll need to weigh that flexibility against a lower interest rate on your money.

3. Maintain a long-standing relationship with your bank

Sometimes, when you’re a customer in good standing and your bank account balance dips below the minimum needed to avoid a maintenance fee, you can get that fee waived if it’s a one-off thing. Similarly, if you’re a long-standing customer of a given bank and you’re forced to cash out a CD early, you may be able to use your relationship to get that fee removed.

Typically, you’ll have to call and ask for that courtesy. But your bank may be willing to let you off the hook if you’re been a customer for 10 years and have accounts other than your CD. Your bank may also be willing to work with you if you’re able to show proof of needing that money — such as documentation that you’ve been laid off.

Penalties are probably the worst part of opening a CD. If you hate the idea of paying one, use these strategies to avoid one. That way, you can continue to enjoy the free money your bank is paying 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.
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. Maurie Backman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

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Have you ever wondered what your car insurance is doing for you? Find out what it did for me after a scary accident. [[{“value”:”

It all happened on a beautiful spring day, much like this one, in a town just like the one you probably live in. I was driving along, just minding my own business, when the back passenger window of my car literally exploded into the car.

Because of my car insurance, I didn’t have to pay a dime to have it taken care of, and I had a ridiculous amount of support in the process.

A day that went terribly wrong

I fully admit it, I was playing hooky that day, running errands instead of sitting at my desk writing like I normally do. It was a Friday, it was beautiful and sunny, and I was taking a familiar trip I’ve taken probably thousands of times at this point. Back to my house from across town, down a surface-level highway.

My dog was with me — that’s important to know — but it was just the two of us. He’s a nearly 9-year-old Jack Russell terrier named Cody. And, obviously, a very good boy.

We were crossing the midway point when there was a sound like a metallic object had struck the roof or the ceiling of the car and bounced off. It was the strangest thing. I looked down at Cody, and he looked right back at me, both of us surely thinking, “What in the world is that weirdness?” But nothing else happened, so I didn’t dwell on it and just kept driving.

Two blocks later, there was a sound that I’d never heard before in my life, almost like what I imagine driving a car without a tire might sound like, so my brain said, “Hey, pull over, your tire blew.”

OK, brain.

Except, before I could even switch lanes to do so, glass exploded into the car. Tiny black shards of glass that once were the back passenger window flew toward us like so much stabby confetti.

I was cut, but not badly, and thankfully I was already trying to change lanes, so it wasn’t long before we were off the road. I know you want to know what happened to Cody, but don’t worry, this isn’t that kind of story — the dog doesn’t die at the end.

Shaken, not stirred, I called my car insurance agent because I had no idea who else to call. And that was when I learned what I’d been paying for all these years.

Yes, your insurance may cover that!

My American Family agent was great. She filled me in on what to do, what would happen next, and most importantly, what was covered. Because I sprung for the no-deductible policy, none of the cost would come out of my pocket, and my insurer would take care of the window, any injuries that may have occurred, and any rental car that fell within my policy’s price window if I should need it (no Ferraris, sadly, but a sub-compact was an option).

That was great news, considering. But I forgot to ask her about Cody, who was also in the car. I couldn’t tell if he had glass in his eyes (or anywhere else), and I rushed him to the vet afterward.

The adjuster would fill me in on this a few days later — my policy also covered any injuries to a pet, up to a cost of $1,000. His bill didn’t cost that much, and he was very lucky and absolutely fine. But I didn’t know I had this coverage, and it was something I was really glad to find out.

I also learned that my policy covered the glass replacement 100%, including installation from a mobile service, which is more expensive, but also more convenient when you’re super busy all the time.

My insurer paid the glass installer directly, and within an hour of getting Cody’s vet bill, reimbursed that cost to me. It was amazing.

Do you know what your car insurance policy covers?

It was an important lesson to me, and an important wake-up call. I mean, besides the very real fact that if the front window had blown out instead of the back, I might be writing this from the hospital — or not at all.

It was a reminder that I didn’t really know what I was paying for because I hadn’t reviewed my auto insurance policy in a while, even though it’s online and I can get a copy any time I want. My agent responds quickly to emails, and I could have asked her for an update at any time. But I hadn’t asked in about eight years, instead just paying my premium and going on with my day.

I have to carry car insurance in my state, like in most states, so I pay it because I must, hoping to never use it. I’m also an experienced driver, female, and I drive an older car, so getting maximum coverage for minimum out-of-pocket costs was not a challenge. But if not for this, I might have been out a lot of money unexpectedly, or left driving around without a window for who knows how long.

RELATED: Cheapest Car Insurance Companies

Check your insurance coverage. It might save your window — and pay for your dog’s vet bills — after an accident or some random incident on the road. And while you’re at it, ask your agent for quotes for policies with lower insurance deductibles, just for fun.

You may find that upgrading to a low-deductible, full-coverage policy won’t cost much more than what you’re paying for the most basic coverage, like I did.

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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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Most Spotify Premium plans now cost more. Subscribers will pay an additional $1 to $3 monthly for the service. See what you need to know about the price hikes. [[{“value”:”

Spotify is a popular entertainment app that allows users to stream music, audiobooks, and podcasts. The company offers a free ad-supported plan and several paid premium plans with ad-free music streaming.

Existing customers should be aware that subscription costs have recently become more expensive. New subscribers will pay more, effective immediately, while current subscribers will pay more at their upcoming renewal.

Spotify hikes prices for the second time in a year

In July 2023, Spotify announced it would increase subscription prices for its service. Unfortunately, subscription fees are about to rise again less than a year later.

On June 3, 2024, Spotify stated in a blog post that price adjustments would be made so the company could continue to innovate its product features. All Spotify Premium plan prices (excluding Student) cost more.

As of June 3, 2024, new subscribers will pay the following monthly rates:

Individual: $11.99Duo: $16.99Family: $19.99Student: $5.99

Existing subscribers will receive an email explaining the price hike update throughout the next month. The company shared a screenshot of an example email alerting a current customer that their subscription will renew at the updated rate in July.

I received an email this morning stating that I would be billed a higher amount starting in July. With tax added, I’ve been paying $18.18 monthly for Spotify Family, but soon, I’ll pay $21.39. That’s an increase of $38.52 annually.

Sadly, Spotify doesn’t offer annual subscriptions. I’d love to see that option in the future. Some brands provide discounted subscription rates to customers who enroll in yearly billing. Discounted yearly plans could help loyal subscribers keep more money in their checking accounts.

Premium plans are going up $1 to $3 per month

Subscriptions now cost an additional $1 to $3 per month, depending on your Spotify Premium plan.

Spotify Family subscribers will feel the most impact, but on the bright side, this plan allows up to six users to share a subscription. So this plan still provides significant value if you have multiple family members or roommates sharing the perks.

Here’s an overview of the price changes:

Luckily, Student subscribers will continue paying the same price.

This hack will save you over $40 per year on Spotify Premium

As mentioned above, Spotify doesn’t offer an annual subscription rate for its plans. However, you can buy a 12-month Spotify gift card to avoid paying the increased rate. This gift card can be redeemed as payment for a 12-month Spotify Individual subscription.

These gift cards are sold at retailers like Amazon and Best Buy for $99. The packaging will specify that the gift card is good for a 12-month Spotify Individual subscription. You can then redeem the gift card through your online Spotify account.

This strategy allows you to renew your yearly subscription for a discounted price. Instead of $143.88 a year ($11.99 per month x 12), you’ll pay only $99 for a savings of $44.88. Keep in mind that this strategy won’t work for other premium plans, only Spotify Individual.

If you can’t get around the price hikes, consider paying for your monthly subscription using a credit card that earns rewards. Earning rewards can help you offset rising costs that come with inflation. Check out our list of the best cash back credit cards to learn how to earn cash back on your spending.

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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. Natasha Gabrielle has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Best Buy. The Motley Fool has a disclosure policy.

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You don’t want to waste your money on a subscription that won’t serve you well. Read on to see if Amazon Prime or Walmart+ is a better fit for you. [[{“value”:”

Every time I say things like this, I feel like an old fart, but here goes: These days, it seems as if half of my credit card bill is various services and subscriptions.

Years back, my charges would mostly consist of expenses like groceries and gas for my car. Today, I have recurring bills for meal delivery kits, streaming services, and so many subscriptions it’s hard to keep track of everything.

That’s why I do a subscription audit every few months — to make sure I’m not wasting my money on services I don’t use enough. I also think carefully before signing up for a new service.

If you’re looking for a service that gives you access to free shipping on online orders, you may be inclined to sign up for Amazon Prime or Walmart+. But which is the better pick? That depends on you.

Comparing your options

Amazon Prime and Walmart+ are pretty similar in some ways. Both give you free shipping on orders of any size, and both give you access to free streaming content.

But there are some differences in terms of factors like cost and added perks. Here’s a comparison table so you can see what each includes.

All told, at first glance, it seems like Walmart+ may offer more benefits than Amazon Prime, and at a lower price point. But you’ll need to think about which service better fits with your lifestyle.

How to decide which service to sign up for

If you’re not sure whether Amazon vs. Walmart+ makes the most sense, ask yourself:

How often do I shop at Amazon vs. Walmart? Chances are, the retailer you use most currently is the one whose service it pays to go with.Do I drive or have a car? You won’t benefit from gas savings from Walmart+ if you don’t have a vehicle. On the other hand, the free grocery delivery might come in very handy if you don’t have a way to drive to a supermarket. So these factors sort of cancel each other out.How often do I order groceries for delivery? The low order minimum from Walmart+ is a big draw here, but if you prefer to shop in person, you may not use this feature.

Ultimately, since each service offers a free trial, it pays to try each one for a month and see how it goes. And if you can’t really spot a difference, you may decide that Walmart+ makes more sense because the lower price point fits better into your budget.

One thing you probably don’t want to do, though, is sign up for both Amazon Prime and Walmart+ at the same time. As you can see from the table above, many of these programs’ features overlap with one another, so you risk throwing your money away to some degree by keeping both around simultaneously.

Chances are, once you’ve completed a free trial, you’ll have an easier time deciding which one to sign up for. And even if you commit to a full year, you can always change your mind the following year.

Alert: highest cash back card we’ve seen now has 0% intro APR until 2025

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.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 Walmart. The Motley Fool has a disclosure policy.

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