Money Management

While higher-rate CDs have been common in recent months, they are slowly disappearing. Find out what you should know about whether to buy. [[{“value”:”

In November of 2023, more than 3,900 certificates of deposit (CDs) were available with rates above 5.00%. By March of 2024, that number had dropped under 3,000, as reported by MarketWatch.

There’s no question that CD rates on the whole have come down a bit from recent record highs, although there are still great offers out there. While it’s impossible to predict the future, this trend is probably going to continue or even accelerate, as the Federal Reserve has still signaled a desire to lower interest rates this year if inflation slows.

So, should you rush to buy 5.00% CDs before they disappear? Here’s what to know.

Buying a CD makes sense only in specific situations

Here’s the reality: CDs are a good investment only in very specific situations. Opening one makes sense if:

You can afford to tie up your money for as long the CD term lastsYou don’t have a long enough investing timeline that your money belongs in the stock market

If this criteria doesn’t apply to you, then it doesn’t matter if you lose the chance to buy a CD at 5.00% because it wasn’t the right investment for you anyway.

There’s been a lot of attention lately focused on buying CDs because yields have been pretty impressive — especially considering a good rate on a CD used to be around 2.00%. But you don’t want to let fear of missing out drive you to make the wrong investment choice when a CD really isn’t the best option for you.

Passing up CDs is the right move if the investment isn’t right for you

If you’re not able to commit to investing your money for the term of the CD, it makes little or no sense to invest in it.

You’ll be charged a hefty penalty if you have to withdraw the funds early, sometimes losing most or all of the interest you’ve earned. And if you have to take money out before you earn enough interest to cover the penalty, you could actually end up losing some of the principal you put into the CD.

On the flip side, if you have money you can invest for the long term (around five years or more), you are almost always better off opening a brokerage account and putting the money into the stock market. You can buy shares of an S&P 500 index fund that has consistently earned 10% average annual returns (double what CDs are offering right now), and take on minimal risk, since your timeline is long enough to wait out market downturns before you’d have to sell.

Now, if you happen to have money available that you can lock up for a few months or a few years, you may want to act sooner rather than later and open a CD. Rates probably aren’t going to go up since the Federal Reserve is still signaling an intent to cut rates. Taking a chance by putting off your purchase would mean taking a big risk with little potential upside.

If that’s your situation, check out The Ascent’s guide to the best CD rates to find one that’s offering a competitive yield. Consider buying it soon, unless you have a solid reason to believe the experts are wrong on which way rates will trend in the coming months.

Just be sure, though, that you’re really considering whether a CD is the absolute best place for your investment dollars by thinking first about exactly how long you can afford to tie up your cash.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

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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CDs offer high interest rates, and they have rules that help discourage withdrawals. Here’s what you need to know about them. [[{“value”:”

You tell yourself you’re going to be better about saving money. You do your best, but too often, you end up spending pretty much all of it. Sound familiar?

You’re definitely not alone. Sometimes, you just need a little extra incentive to save, and a CD could give you just that. They’re not right for everyone, though. Below, we’ll take a look at their pros and cons so you can decide if a CD is right for you.

How do CDs work?

A certificate of deposit (CD) is a common bank account that promises an above-average interest rate on your funds. Currently, some of the best CD rates are hovering around 5.00%. But the catch is, you have to agree to leave your cash alone for a while.

How long depends on the CD term you choose. Short-term CDs might only lock away your cash for a few weeks or months while long-term CDs could hold your savings for years.

Each month, you earn interest on the funds in your CD. You can either reinvest this in the CD so you earn interest on your interest in the following month or you may be able to request that the bank transfer your interest payments to a bank account in your name.

It is your money, so you’re technically free to withdraw your cash at any time. But usually, you’ll pay a penalty for taking your cash out before the CD term ends. The penalty varies by bank and may also depend on how early you’ve made your withdrawal.

The limitations CDs put on your cash could be that extra barrier you need to avoid spending too much on things you don’t need. But these accounts are usually only a good idea if you’re confident you can leave your money alone for the whole term.

How do you open a CD?

Opening a CD is just like opening any other bank account. You first need to choose the CD you want. The two things that matter most here are the CD term and the APY. Start by thinking about how long you’re comfortable locking your money away. Then, look for the best CD rates that fit this term length. You may want to check out the early withdrawal penalties and minimum deposit requirements too.

Then, all you have to do is contact the bank and open the account. You’ll need to provide identification and your Social Security number. And you’ll need cash on hand to deposit in the CD. You can usually only make one upfront deposit, though some CDs may permit you to add extra cash over time. If you have any questions, contact the bank for details.

What are the alternatives to a CD?

A single CD might not be a great fit for you if you’re worried about locking your money away for too long. If you still like the idea of limiting your access to your cash, a CD ladder might work better for you.

This is where you open multiple CDs of different term lengths and deposit an equal amount of cash in each. When the first CD term ends, you can either spend that cash or roll it over into a new long-term CD. This lets you access some of your cash at chosen intervals while taking advantage of the higher interest rates long-term CDs usually offer. But it may require a lot of money to pull off.

A high-yield savings account is a better bet if you want to grow your savings without losing access to your funds. The best accounts are also offering interest rates of around 5.00% right now. That could put hundreds or thousands of dollars in your pocket, depending on your balance. However, these interest rates are variable and can rise or fall over time, while CD interest rates are usually fixed for the full CD term. There’s also nothing preventing you from withdrawing your cash as needed.

If you’d rather, you could split some money between a savings account and one or more CDs. Weigh the pros and cons of each type of account and compare a few specific accounts before deciding which is right for you.

These savings accounts are FDIC insured and could earn you 11x your bank

Many people are missing out on guaranteed returns as their money languishes in a big bank savings account earning next to no interest. Our picks of the best online savings accounts could earn you 11x the national average savings account rate. Click here to uncover the best-in-class accounts that landed a spot on our short list of the best savings accounts for 2024.

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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It’s not how much you fly, it’s how much you spend. Learn what you need to know about achieving elite status on American Airlines. [[{“value”:”

American Airlines’ loyalty program, AAdvantage, has four tiers of elite status. The first level is known as AAdvantage Gold, and even though it’s the airline’s entry-level elite status, it has some valuable perks.

AAdvantage Gold status gives you one free checked bag, unlimited requested complimentary upgrades for you and a companion, priority boarding, choosing your preferred seats at booking with no upcharge, and more.

So, how do you earn AAdvantage Gold status? There are several ways you can do it.

You earn AAdvantage status with Loyalty Points

A couple of years ago, American Airlines completed an overhaul of its AAdvantage loyalty program. Now, status is earned with a single type of point called Loyalty Points, which are earned in several different ways (including by flying). We’ll discuss the various ways to earn loyalty points in a bit. But for the time being, know that you need 40,000 Loyalty Points in an earning year (March 1 to Feb. 28).

Not to make it more confusing, but you technically earn miles and Loyalty Points. Miles are what you can redeem for free travel; Loyalty Points allow you to earn elite status. In most cases, you’ll earn the same number of both. But it’s possible to get one without the other in some situations, particularly if you’re using credit cards. For example, a credit card sign-up bonus earns miles, but not Loyalty Points.

Earning Loyalty Points by flying

The most obvious way to earn AAdvantage Loyalty Points is by flying on American Airlines. And the number of Loyalty Points depends on how much you spend, not how many miles you fly. General (non-status) AAdvantage members earn 5 miles per $1, while those who already have elite status earn at higher rates:

No elite status: 5 miles per $1AAdvantage Gold: 7 miles per $1AAdvantage Platinum: 8 miles per $1AAdvantage Platinum Pro: 9 miles per $1Executive Platinum: 11 miles per $1

For example, if you don’t have AAdvantage Status and spend $500 on a flight, you’d earn 2,500 Loyalty Points.

Earning Loyalty Points for credit card spending

For every base mile you earn on an American Airlines cobranded travel credit card, you’ll get one Loyalty Point. There are several travel credit cards that are issued by Citi and Barclays that qualify. You won’t earn Loyalty Points on bonus category mileage multipliers, but this is still a very generous earnings program compared with other airlines’ co-branded credit cards.

Other ways to earn Loyalty Points

Here are some other ways to earn Loyalty Points (not an exhaustive list):

Flying on American Airlines’ partner airlines (including British Airways and Qatar Airways).Choosing to earn miles instead of points with hotel partners such as Marriott and IHG.Loyalty Point bonus rewards you can choose after reaching certain thresholds during the year.Enrolling in the AAdvantage Dining program and dining at participating restaurants.Using the AAdvantage eShopping online shopping portal, which can earn several Loyalty Points for every dollar you spend with partner merchants.

So, how much do you need to fly to earn AAdvantage Gold status?

One key takeaway is that you actually don’t need to fly at all to earn AAdvantage Gold status. For example, you can simply spend $40,000 on a co-branded credit card and achieve the status level (although most of the status benefits are only useful when flying, so this might not be a smart plan).

The bottom line is that you can earn AAdvantage Gold status through a combination of moves, and this can make it significantly easier to earn than other airlines’ elite status. For example, if you’re a new AAdvantage member, you could earn Gold status by spending $5,000 on flights (25,000 Loyalty Points), $10,000 on a co-branded credit card, and earning another 5,000 Loyalty Points through the AAdvantage E-Shopping portal. There are many combinations you can use to get there, and over the course of a year, earning Gold status can be easier than you think.

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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.Citigroup is an advertising partner of The Ascent, a Motley Fool company. Matt Frankel has no position in any of the stocks mentioned. The Motley Fool recommends Barclays Plc, InterContinental Hotels Group Plc, and Marriott International. The Motley Fool has a disclosure policy.

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Traveling as a couple is fun, and it’s even better when you’re paying for it with points. See what you and your spouse can do to earn travel rewards more quickly. [[{“value”:”

Traveling is a tradition for newlyweds, and doing so regularly could be good for your marriage. Among couples who are happy in their marriages, 84% travel regularly, according to a survey by Honeyfund.

Many couples turn to travel credit cards to help stretch their travel fund and go on trips more often. If you already have a travel card or you’re planning to get one, you’ll probably want to earn points as quickly as possible. After all, the more you earn, the more you save on travel. Here’s how to speed up the process.

Get a travel card that fits your spending habits

There are lots of travel cards available. Most of them earn a base rate of 1 point per $1 spent, but also have bonus categories where they earn more. Here are a few examples of common bonus categories:

DiningAirfareHotelsGroceriesGas

There are also a few travel cards that don’t have many, or any bonus categories, and instead offer a higher base rate — normally 2 points per $1 spent.

Think about what bonus categories will work well with your typical spending to choose the right card for you. If you go out to eat often, then you’ll probably want a card that earns bonus points at restaurants. If you have a long commute to work and do most of your cooking at home, check out gas and grocery cards. And if your spending is all across the board, then a card that earns 2 points per $1 everywhere is a good choice.

Add your spouse as an authorized user

If you’re the only one with a travel card, add your spouse as an authorized user. You can do this through your online account or by calling your card issuer.

Your spouse will receive their own card tied to your credit card account. They’ll be able to use it to make purchases, and all the purchases they make will earn travel points. Since it’s your credit card account, you’ll be responsible for your spouse’s spending.

This is a simple way to ensure that you’re earning points on all your spending as a couple. Some card issuers even offer bonuses for adding authorized users.

Double up on welcome offers

You and your spouse can apply for your own credit cards, and you could also both get the same card. It might seem unnecessary, but it’s actually a good move, because you’ll have the opportunity to earn two welcome offers.

Most travel rewards cards have welcome offers for new cardholders. These are almost always the fastest way to earn points. For example, a travel card may offer 50,000 bonus points if you spend $4,000 in the first three months.

If one of you gets this card, you can earn 50,000 bonus points. If both of you get it, you can each earn that welcome offer, for a total of 100,000 bonus points. Just make sure you can each meet the spending requirement.

I highly recommend taking advantage of opportunities to earn welcome offers. I’ve earned well over 1 million bonus points this way. You can save a lot more money on travel if you and your spouse are willing to open new cards on occasion.

Use your travel rewards card for everything

Some people open travel credit cards, but still pay for purchases with their debit card or cash, too. The only time this makes sense is when there’s an additional fee for paying by credit card.

But if it’s the same price no matter how you pay, then there’s no reason to use anything but your travel card. You earn points every time you use it, so you shouldn’t give up any chances to earn more. Make sure your spouse knows this, as well.

Travel points will accrue much faster when you and your spouse work together. Follow these tips, and it won’t be long before you have enough points to cover your next vacation.

Alert: our top-rated cash back card now has 0% intro APR until 2025

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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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Putting your Venmo or Cash App ID on your social media profile is dangerous. Find out what to do instead. [[{“value”:”

You may be thinking about posting your Venmo handle to Instagram. Or, worse yet, you’ve been bombarded with Facebook requests from people promising to send you money. All they ask for in exchange is your Cash App ID. Sound familiar?

Chances are high it’s a scam. Below, we explain why you shouldn’t put your Venmo or Cash App IDs on social media profiles and what you can do to help followers support your work.

Scammers will send your friends fake Venmo requests

“I’m at the grocery store and forgot my money! Please help, I’ll pay you back right away.”

Oh no! Your friend is in trouble. $10 bucks later, you’ve fulfilled the request. You’re a little poorer, but at least your friend can buy bananas.

Hold on. That’s not @suzanne_the_stan. That’s @suzanne_the_stan1! Someone has posed as your friend, right down to their profile picture. And now you’re $10 poorer. Even worse, Venmo doesn’t do refunds — bummer for you.

There’s nothing sacred about Venmo or Cash App handles. Any schmuck can copy and paste your ID, tag a “1” to the end, and create a new account that looks like yours. Combine that with a screenshot copy of your photo, and the scammer has the perfect setup to beg money from your friends and family — under your name.

What you can do to filter scammers

That grocery text? That was lifted straight from the Venmo website under “Common Scams.” It’s common enough that the company explicitly warns customers to watch out for them.

Here’s what Venmo recommends you do to filter scammers:

Check usernames to ensure the person is who you think they are.Tap their profile to check their transaction history (with you).If you still need clarification, contact the person asking you for money.

Kind of a hassle, but it’s really only necessary when the request is unexpected. Tweaking privacy settings can keep surprise scams to a minimum.

How to make accounts private

To prevent scammers from copying your handles, keep them private. Adjust privacy settings, only share handles with people you trust, and don’t post them to Instagram.

How to make your Venmo app transactions private:

Go to the Me tab.Tap the Settings gear in the top right corner.Tap Privacy.Under Default Privacy Setting, select your preferred default privacy setting.

You can still receive donations from supportive followers. You just have to get a little creative with it. Link to platforms that help you manage donations from your socials — platforms that make it difficult for scammers to impersonate you.

Alternatives to posting Venmo and Cash App IDs

You can set up LinkTree links on your social media profiles to direct followers where to donate. You can send followers to your website or a third-party platform that supports content creators like you. The company works on Instagram, TikTok, and YouTube, among others.

Buy Me a Coffee is one such platform. Followers can send you donations with a couple of clicks. It’s easy; followers don’t need to sign up for memberships, though you can offer paid memberships.

Patreon is another platform that supports content creators. It’s subscription-based, so followers who sign up pay monthly. Generally, this option is best if you’re willing to post exclusive stuff for paid subscribers.

It’s cool to give followers a way to support your work. The safest way to do so is not through payment apps, but instead through platforms like Buy Me a Coffee. It keeps you and your friends safe from scammers (and keeps you from demolishing your creator budget).

Alert: our top-rated cash back card 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 lengthy 0% intro APR period, 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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Costco’s Kirkland Signature products are well-known for their quality. Here are five less celebrated products to add to your shopping list. [[{“value”:”

Costco’s Kirkland Signature products are legendary for their quality, price, and taste. Few people would argue that Kirkland Signature products are inferior to other generic brands (unless you’re talking with a fanatic of Member’s Mark, Sam’s Club’s own private label, in which case the argument could get heated).

Nonetheless, many Kirkland Signature products get more fanfare than others, leaving some great deals relatively undiscovered in Costco’s stores. So, if you’re looking for something new at Costco, here are five underrated products that are totally worth trying.

1. Peanut butter pretzels

Price: $11.99

Let’s start things off right. And by that, I mean with a 55-ounce jug of peanut butter-filled pretzel nuggets. If you haven’t tried these, beware — It will quietly become a necessity in your grocery budget. Although you can find cheaper peanut butter pretzels at Trader Joe’s ($2.49 for 16 ounces), the Kirkland nuggets are bigger, while Trader Joe’s version is slimmer and has more pretzel than peanut butter.

2. Shelled pistachios

Price: $16.99

These have been one of my go-to Kirkland Signature snacks for a long time. The price is almost unbeatable — $16.99 for 1.5 pounds — and you get only the nutmeat, too, not the shell. The per-ounce price is about $0.71, which is cheaper than Walmart’s Great Value pistachios ($0.83), my former go-to for cheap shelled pistachios.

3. Ancient grain granola

Price: $10.49

At our house, we go through a lot of granola. We put it in yogurt parfaits, splash in some milk and eat it like cereal, or just snack on it out of the bag. The Kirkland Signature Ancient Grains is one of the tastier granolas. It’s not overly sweet, doesn’t have weird flavors added to it (like pumpkin spice — yuck), and weighs over two pounds. Pair it with some Kirkland Signature milk or honey for a good breakfast.

4. Organic Roasted Seaweed

Price: $12.49

If you like seaweed as a snack, Costco can supply the delicacy at a good price. The Kirkland Signature Organic Seaweed has 10 individual packs of sesame-flavored seaweed. At $12.49, you’re paying roughly $2.08 per ounce, which is a lot cheaper than Walmart’s best offering (about $7.66 per ounce).

5. Sparkling Water

Price: $10.99

Sparkling water is a healthy substitute for soda, but it can be pricey. Since the fizz starts evaporating soon after opening, it’s not always worth buying sparkling water in large bottles either. Luckily, Costco sells sparkling water as a pack of 35 cans, which is one of the lowest per-can prices you’ll find. At $0.31 per can, you’ll pay a lower price than most La Croix packs at Walmart (about $0.39 per can)

Keep in mind that buying Kirkland Signature products isn’t a risky venture. If you don’t like it, rest assured Costco’s generous return policy will likely refund the purchase to your credit card without many questions. That might be good for products you’ve never tried before — like seaweed — or others that go bad before you even have a chance to dig in.

Alert: our top-rated cash back card 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 lengthy 0% intro APR period, 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 positions in and recommends Costco Wholesale and Walmart. The Motley Fool has a disclosure policy.

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