Money Management

Appliances aren’t exactly an everyday purchase. Read on to see why using your credit cards to buy them is your best bet. [[{“value”:”

Appliances aren’t the sort of purchase you’re going to be making every day. Rather, you’re usually looking at buying new appliances in a pinch to replace a bum dishwasher or failing fridge. Or you may be purchasing appliances in conjunction with a home renovation.

Either way, you have a choice when it comes to buying appliances: Pay cash or use a credit card. In many cases, the credit card option is your best bet. Here’s why.

1. You can earn big rewards

The amount of cash back you’ll get from a credit card will hinge on the specific card you have. But let’s say your card offers 1.5 points per $1 spent on general purchases, and appliances fall into that category. If you’re spending $5,000 on a new stove, dishwasher, and fridge for your kitchen, you’ll get $75 of that back, just like that.

Of course, you’ll always need to check and see if there’s any sort of surcharge for using a credit card that might exceed the amount of cash back you get. If you’re buying appliances from a major retailer, that generally won’t be the case. But if you’re buying them from a local business that tacks on a 3% surcharge for credit card purchases, then it obviously won’t make sense to use a card and get only half of that surcharge refunded as cash back.

2. You may get protection in case the price goes down

When you’re forking over a lot of money for appliances, it can be a real blow to see the cost of a given item drop just days after you’ve had it installed in your home. Some credit cards, however, may offer price protection so that if you buy an appliance and its price falls a week later, you’ll get refunded the difference. Considering that appliances aren’t the sort of thing you can easily take back to the store, that’s huge.

3. You may get an extended warranty

When you buy appliances with a credit card, you may get a warranty from your credit card itself that’s separate from the warranty that comes with your purchase. Some credit card warranties may even double the warranty provided by your manufacturer. Of course, you’ll need to read the fine print on your credit card agreement to see what protection you’re entitled to.

Make sure you can pay off your appliance purchases before putting them on a credit card

Clearly, there’s much to be gained by using credit cards to purchase appliances. But before you go this route, make absolutely certain that you’re in a position to pay off your credit card bill in full.

If you rack up interest on a credit card balance that includes your appliances, you’ll negate the benefit of the cash back you earned. And in time, those items might end up costing you a lot more than you bargained for.

Case in point: A $5,000 appliance purchase paid off over three years at a 20% APY will cost you $1,690 in interest. That’s basically one-third of the cost of your purchase itself.

So it’s really best to have the cash on hand to cover the appliances you’re looking to get. As long as you have the cash, though, you might as well use your credit cards for the benefits above.

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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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Is the bulk of your savings in a savings account at a big bank? Your cash deserves better. Learn why now is a great time to open a high-yield savings account. [[{“value”:”

Spend any time in the personal finance space and you’ll hear a lot of buzz about how the higher federal funds rate (a response from the Federal Reserve to fight higher inflation) is impacting your money.

One bright spot in this development is the fact that certificates of deposit (CDs), money market, and savings accounts are all paying higher rates than we’ve seen in a long time. If you’ve been dragging your feet on opening a high-yield savings account (HYSA), now is a great time to do it. Here’s why.

1. You can beat inflation

Is your cash sitting in a big bank savings account, earning just 0.01% APY? I don’t want to alarm you, but you’re losing spending power! Thankfully, inflation is down from its peak of 9.1% in June 2022 (a 40-year high), but as of the April Consumer Price Index report, it stood at 3.4% year over year.

So if you’ve got saved cash in an account not earning you at least this much, that money is slowly being eaten away by inflation. But since you can open a high-yield savings account with an online bank that earns 5% (or better), you can beat the inflation monster. Plus, the best HYSAs are FDIC-insured — so your money will be safe, to boot.

2. You can easily set goals for your cash

Since HYSAs are most commonly offered by online-only banks, they lean hard on technology, and you’ll often get access to a great online banking experience (and mobile app) if you open one. Hands down, my favorite feature of my own HYSA is having the ability to create sub-accounts (several banks offer this — they might be called “pockets,” “vaults,” or “buckets,” depending on the bank) in it. This makes it so easy to set goals!

I’m using the account to save for my impending home purchase, quarterly freelancer tax payments, travel plans, upcoming dental work, and a few other expenses. I can still keep all that money in one place, earn the same high APY on it, and track my progress every time I log into my account. If you struggle to save, having this extra motivation might help — it’s certainly helped me!

3. You can build an emergency fund

As someone who lived paycheck to paycheck for nearly my entire adult life (until very recently), I have known the pain of having to plunk down a credit card for an unplanned bill, knowing I’d be paying it off with interest for the foreseeable future. Well, why not take advantage of the higher rates and ease of HYSAs and set a goal to start an emergency fund?

Experts recommend having three to six months’ worth of cash in a savings account to cover emergency expenses and get you through a period of unemployment, should you find yourself out of a job, but this is a lot of money. It’s easy to recommend that, but much harder to actually do it — especially if you don’t earn much.

The nice thing about HYSAs, though, is that the best ones will let you open an account with $0 and build your balance at your own pace. If all you can swing is $25 or $50 a month, that’s still something. In a year of saving $50 a month, you’ll have $600 (not including any gains thanks to your HYSA’s interest rate). That’s not a small amount of money — it might cover your auto insurance deductible if you needed to file a claim, for example. Open a HYSA this month so you can start saving for emergencies — you won’t regret it.

Ready to open a high-yield savings account of your very own? Review our list of the best high-yield savings accounts available now and pick the best one 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.
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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New to Costco? Here are some things to know about its signature brand. [[{“value”:”

If you’re new to shopping at Costco, you may find yourself wondering why you keep seeing the Kirkland label on so many products. Kirkland is Costco’s signature brand, and buying the Kirkland version of whatever it is you’re getting will often mean getting to spend less.

If you’re a seasoned Costco shopper, you may be familiar with a host of Kirkland products. But here are some things that may surprise you.

1. They cover a huge array of categories

It’s not just baked goods and snack items you’ll find the Kirkland name on. The Kirkland brand probably covers more product categories than you imagined, from vitamins to batteries to baby wipes.

You’ll even find the Kirkland name on sneakers and apparel, as well as pet beds and supplies. Kirkland also makes its own signature sangria, though it’s not available in Costco stores that don’t sell alcohol.

2. They’re generally super high in quality

Store brands are often thought to be lower in quality than well-known brands. But not Kirkland.

Now look, I’ll admit that as a newer Costco shopper, at first I wasn’t always so eager to give Kirkland products a chance. But these days, I’ll buy just about anything with the Kirkland label, from spices to over-the-counter medication. And with few exceptions, I’ve never had an issue with quality.

You should also know that Costco makes a point to stand behind all of the products it sells — particularly its signature brand. So if you bring home a Kirkland product that doesn’t meet your needs, you can generally get your money back in full if you return it.

If you’re still not convinced, go to Costco.com and look at Kirkland product reviews. Kirkland’s Signature Coffee Organic Pacific Bold K-Cup Pods, for example, have a 4.9-star customer rating across almost 1,500 reviews. Starbucks’ Veranda Blend Blonde Roast K-Cups only have a 4.7-star rating across roughly the same number of reviews.

3. Some items aren’t worth buying

You can probably tell that I’m a fan of Kirkland products in general. But there have been a few Kirkland items that have let me down in the past — namely, paper products.

I’m at a stage in my life where I take my paper towels seriously. And the Kirkland ones just don’t do the same job of soaking up spills as Bounty.

Along these lines, Kirkland toilet paper reminds me of the stuff you find in office buildings, or in the bathroom at the mall. While it serves its needed purpose, it’s just not very high in quality. So while you could save money by purchasing Kirkland paper products, to me, some items aren’t worth the savings.

However, the only way for you to really know if a Kirkland product works for you is by trial and error. And again, if you buy Kirkland items you aren’t happy with, you have some recourse.

The more often you shop at Costco, the more familiar you may become with the store’s signature brand. It definitely pays to give Kirkland products a try, but don’t hesitate to bring items back to customer service if your purchases don’t work out as expected.

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.

Click here to read our expert recommendations for free!

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.

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Is a Costco membership right for you? Maybe. But consider these benefits and drawbacks before making your decision. [[{“value”:”

In the grand scheme of your yearly expenses, a Costco membership may not be such a huge one. At just $60 a year for a basic membership or $120 a year for an Executive membership, you’re probably spending a lot more on utility bills, car payments, and your mortgage than you are for Costco access.

But still, money is money. And you don’t want to throw yours away on a Costco membership for no good reason. With that in mind, here are some pros and cons of becoming a Costco member.

Pro No. 1: You can save big on groceries and household essentials

Costco’s bulk offerings make it easy to save money on food and household supplies on a per-ounce or per-unit basis. Take ibuprofen, a common pain reliever people like to keep on hand. Costco’s online price for 1,000 tablets has you paying $0.01 per pill for the Kirkland version, which is Costco’s signature brand. Even a large bottle of Amazon’s generic version has you paying double at $0.02 per pill.

Pro No. 2: You can gas up your car for less

If you live in the suburbs or have a long commute, gas may be a larger expense in your budget. But you might save a lot of money on it by filling up your car at Costco, since the warehouse club giant often has the cheapest fuel prices in town. Plus, that way, you get to accomplish two errands with a single trip.

Pro No. 3: You can enjoy savings on vacation packages

Traveling can be expensive, but you might enjoy nice savings by booking a cruise or resort stay through Costco. Many of Costco’s deals are exclusive to store members and offer added perks like resort credits that are redeemable for activities and drinks.

Pro No. 4: You can return most items at any time

Costco has one of the most generous and flexible return policies among retailers. With limited exceptions, you can bring almost any item back at any time for a full refund, and for a variety of reasons.

In the context of clothes, you can return apparel on the basis of it not fitting well. For food, you can bring back partially eaten items if you don’t like them. Best of all, you don’t have to show a receipt to get your money back, since Costco representatives can look up your purchases based on your membership ID.

Con No. 1: Bulk buying could increase your chances of waste

While buying groceries and household items from Costco could result in big savings, there’s also the risk of letting food or other products go to waste if you’re not able to use them before they expire.

We talked about pain medication in the example above. You might spend a lot less on ibuprofen at Costco than another store. But 1,000 tablets is a lot of medication. You may not end up finishing the whole bottle before it loses its potency (which would actually be a good thing, as it would mean you didn’t spend half the year in pain, but still).

Con No. 2: You may be tempted by impulse buys

Costco’s inventory is massive. Because of this, you may be tempted by impulse purchases when you shop in stores. And in that case, the savings you reap on bulk purchases could be negated via the extra items you end up bringing home.

Con No. 3: You may not shop there enough to recoup your membership fee

Some people shop at Costco on a weekly basis. But if your intent is to only go a few times a year, then you may not end up saving enough on your purchases to come out ahead financially after accounting for the cost of a membership. If you go to Costco three times a year, you’ll need to make sure you’re saving $20 each time just to break even on the basic membership fee.

Con No. 4: What you save on gas at Costco, you might spend by driving a longer distance to get there

Costco’s affordable gas prices are a big draw for a lot of people. But if you don’t have a Costco all that close to your home, what you gain in the form of a lower price per gallon, you might lose by wasting gas to get to a station. For example, you might save $0.10 per gallon on a 15-gallon fill-up, putting $1.50 back in your pocket. But if you spend $2 in gas to get to Costco in the first place, you won’t be doing yourself any favors if the sole purpose of your trip is to buy gas.

Clearly, a Costco membership could be a mixed bag, so think carefully before signing up. But also remember that Costco guarantees your satisfaction as a customer. So if you find that your membership isn’t working out, you can always cancel for a refund. That makes joining a pretty low-risk proposition.

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.

Click here to read our expert recommendations for free!

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.

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Savings accounts at big banks are pretty worthless for APY — but they have other benefits. Learn why one financially savvy writer is hanging onto hers. [[{“value”:”

I write a lot about bank accounts here at The Ascent. You might expect that I settle for nothing less than the highest annual percentage yields (APYs) across all my accounts — but you’d be wrong. In fact, I have a big bank savings account that pays only 0.01% on my saved cash. This might seem criminal given the fact that anyone can open a savings account that pays 4%, 5%, or more right now. But I’ve got a good reason for keeping this account open.

Overdraft protection is nice to have

Why am I tolerating such a low return on my saved cash? Two words: overdraft protection. If you’ve ever accidentally overspent your checking account balance, you know the pain of being assessed overdraft fees, and possibly also late fees as a result of having inadequate money to cover a bill that’s due. It’s not a fun situation, and during my many (many) years of living paycheck to paycheck, I was very close to the edge multiple times.

So I set up guardrails for myself, including enabling email alerts with my bank, so I quickly find out if my checking account balance drops below a certain level. I also opened my savings account and linked it to the checking account. If I accidentally overdraft the account, money is transferred from savings automatically to cover the shortfall.

It was an easy investment in additional peace of mind, and if you don’t currently have this kind of overdraft protection set up on your checking account, I recommend it.

I have a high-yield savings account, too

I keep my big bank savings account minimally funded to avoid maintenance fees — for the terms of this account, that minimum balance requirement is $300. It’s unlikely that I’d overdraft my checking to such a degree that $300 wouldn’t be enough to cover the charge. This doesn’t mean I have no other savings, though.

The bulk of my saved cash is in a high-yield savings account I opened with an online-only bank back in 2022. It doesn’t pay the highest APY available right now (currently 4.20%; it was as high as 4.35% until pretty recently), but I love its features — they make up for the slightly lower APY. My favorite one is the ability to create sub-accounts to help me save for different goals.

I use this account to hold the money I take out of my pay to cover quarterly freelancer taxes. I’ve also been using it to save for my upcoming home purchase and the emergency fund that will become even more crucial when I finally close on the mortgage. And when I’m saving money for an upcoming vacation or medical care for my cats or myself, it goes in there, too.

I have a checking account linked to the high-yield account, which makes it a lot easier to access my money when I need to. I can transfer it from the savings to the checking account in seconds, and then either take out money from an ATM or use my debit card to make a payment. I also recently ordered paper checks for that account, which gives me one more way to pay a bill or cover an expense.

Bank in the way that makes sense for your life

It’s very easy for personal finance experts to make broad pronouncements about what we all should be doing with our money. But sometimes, those recommendations don’t make sense for everyone. So really, you should be banking in the way that best works for you — personal finance is personal.

As for me, I could close my low-APY savings account altogether if I decided to switch my direct deposits and bill-paying activities to the checking account I have with an online bank. This might make my life a little easier, but honestly? I don’t mind having multiple bank accounts split between two banks.

Each account has a set purpose, and managing them isn’t a hardship for me. Plus, I actually really like the checking account I have with that big bank — it has no fees and it’s been extremely easy to manage over the 15 years that I’ve had it open. It works for my life.

And regardless of how you manage your money, opening a high-yield savings account is one of the best moves you can make right now, while the federal funds rate is still high. I love getting my interest payment once a month — it is truly passive income, and I’ve been able to use those little windfalls to pad my emergency savings as well as pay for fun purchases like hotel stays. If the bulk of your savings is languishing in an account paying mere pennies per month (if that), consider making a change.

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.The Motley Fool has a disclosure policy.

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