Latest News “Stay informed with breaking news, world news, US news, politics, business, technology, and more at latest news.

Category: Money Stories

Auto Added by WPeMatico

  • I used a buy now, pay later service to book a flight. It was convenient, but I’m never doing it again.

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate credit cards to write unbiased product reviews.

    chonce maddox outdoors
    The author, Choncé Maddox.

    Choncé Maddox

    • I needed to book a last-minute flight last year, and I used a buy now, pay later service.
    • While it was convenient at the time, it was frustrating continuing to pay for a flight long after I took it.
    • I also missed out on the rewards I would have gotten if I had been able to use my credit card.

    When I needed to book an emergency last-minute flight last year, I turned to a service called Uplift, one of many buy now, pay later programs. Being able to break up the cost of the ticket into smaller, manageable payments seemed like the perfect solution during a stressful time. I didn’t have time to overthink my decision.

    It felt convenient and gave me quick access to what I needed. But as the months went on, I realized paying off a flight after the travel had already happened wasn’t a great experience. It felt counterintuitive and weighed heavily on how I budgeted for the months ahead.

    While BNPL is marketed as an easy and flexible payment option, using it for travel raised some financial red flags for me. I couldn’t help think, would I do this again? The answer is no.

    Here’s why I wouldn’t make paying for travel with BNPL a habit and why you might not want to, either.

    The allure of convenience (and why it’s not always worth it)

    The biggest draw of BNPL services like Uplift, Klarna, and Afterpay is convenience. These platforms allow you to buy goods, book travel, shop, or buy flights without having to pay the full cost upfront. With just a couple of clicks, you can finance almost anything you need.

    During my childhood, I was familiar with a similar concept, but it came with a key difference. My mom was a pro at layaway. She used it to pay for back-to-school clothes, Christmas gifts, and anything else we needed. The concept was simple: Make payments over time, and once the item was fully paid off, you received it. While layaway required delayed gratification, it was a safe and thoughtful financial strategy.

    BNPL flips that idea completely, giving you immediate access to goods or services while requiring you to make payments later. This might feel empowering at the moment, especially for last-minute expenses like my flight. Yet, the emotional and financial impact of paying for something long after you’ve enjoyed it isn’t quite the same.

    Paying for travel after it’s over feels burdensome

    Once my emergency was resolved, I returned home and began budgeting for upcoming expenses like groceries and utilities. The BNPL payments for my flight, however, still hung over my head. It’s frustrating to watch your earnings go toward something you’ve already “used up” rather than toward your current lifestyle or savings.

    If you frequently use BNPL for travel or anything else, it can easily complicate your financial planning. Travel is one of those expenses where future planning is key. For example, many people book trips months in advance to save on costs and spread out budgeting. Adding a BNPL payment into the mix while planning your next getaway increases the risk of overlapping travel expenses, creating a cycle that’s difficult to manage.

    No travel rewards or perks

    Another downside of using BNPL services for flights is the complete lack of travel rewards. Many travelers, myself included, rely on travel reward programs to maximize their spending. For instance, airlines and travel rewards credit cards often offer frequent flyer miles, hotel points, or cashback on purchases related to travel.

    Accumulating these perks can lead to free flights, upgraded seating, and discounted stays. When you choose BNPL, you’re likely to pass these loyalty programs entirely. The payments generally don’t translate into any type of rewards program, leaving you to pay full price without any added benefits.

    Credit cards offer more flexibility if you use them wisely

    Speaking of credit cards, while I don’t advocate for putting vacations or unnecessary luxuries on your card without a plan to pay them off, a credit card is often a smarter choice than BNPL for emergencies. Many credit cards come with travel insurance, rewards programs, and even perks like TSA PreCheck or lounge access if you spend enough.

    I have a Southwest Rapid Rewards credit card, but I couldn’t find a good deal with that airline at the time for my flight, and I didn’t have enough points to use just yet. Though I appreciated avoiding credit card debt, I found myself juggling these fixed payments of over $100 for the BNPL plan through Uplift with other financial responsibilities, making it feel less helpful in practice.

    If I had used a travel rewards credit card for my emergency flight, I could have earned points to put toward future travel or redeemed perks such as early boarding. Plus, with many credit cards offering 0% APR introductory rates, it’s entirely possible to treat a credit card purchase like a BNPL plan — by paying it off before the interest kicks in.

    While BNPL services like Uplift do offer convenience in a bind, they’re not without their downsides.

    For those considering BNPL for similar situations, I recommend evaluating your options carefully. If you already have a travel rewards credit card or access to a 0% APR promotion, you may find you have better alternatives for financing emergency trips.

    Read the original article on Business Insider

  • My son just bought a $70,000 truck he didn’t need — should I mind my own business until he’s drowning in debt?

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.

    Two men sit on either side of a glass coffee table while holding paperwork next to a car.
    The reader is not pictured.

    Zero Creatives GmbH/Getty Images

    • For Love & Money is a column from Business Insider answering your relationship and money questions.
    • This week, a reader’s son is a reckless spender who just paid $70,000 for a new pickup truck.
    • Our columnist says as hard as it might be, he needs to be allowed to make his own choices.
    • Got a question for our columnist? Write to For Love & Money using this Google form.

    Dear For Love & Money,

    My adult son graduated from college and recently started a family. My husband and I were diligent about teaching our children financial responsibility. My older children took these lessons to heart, but not my youngest.

    I don’t know exactly how much he and his wife make, but I know from their job titles they don’t make as much as they spend. It’s neverending — vacations, concerts, and new toys.

    The worst, latest culprit is a pickup truck — we offered to sell him a used Toyota Camry that would meet all his needs, but he spent $70,000 on a truck. I know the truck cost that much because he bragged about it to his dad after he turned down our offer to sell him the Toyota for a great price.

    We made that offer because we are worried about his financial choices, but we don’t feel comfortable coming out and telling him that spending $70,000 on a truck when you’re anything less than a millionaire rancher is a stupid thing to do.

    How do we tell him and his wife to slow down? Should we just mind our own business until he’s drowning in debt? He might be an adult, but he’ll always be my son, and it hurts me to watch him go down this path.

    Sincerely,

    Once a Worried Mom, Always a Worried Mom

    Dear Worried,

    I have spent the last four years of my life learning everything there is to know about getting into an Ivy League school, because my driven A+ daughter wants to attend Harvard. I’ve ensured both of us are doing everything possible to improve her chances.

    But my daughter is in 7th grade. At any point in the next six years, she could meet a guy she can’t bear to leave, decide to skip college altogether, or follow her high school friends to a state school. Even writing these things is semi-devastating. If there was ever a middle-class, public school kid from the suburban Midwest with a chance at Harvard, it’s my daughter. I don’t want to see her waste her talent. I don’t want to see her sacrifice her dreams on the altar of a relationship or compromise her future for a passing fancy.

    If she chooses to do these things, however, there’s nothing I can do. This is her life. And while I can encourage and support her as hard as I can in the direction I think she should go, chances are, all that will do is alienate her. But knowing this doesn’t make it any less painful. As Elizabeth Stone wrote, “Making the decision to have a child … is to decide forever to have your heart go walking around outside your body.” All we want for our hearts walking around out of our bodies is safety, happiness, and success. Nothing will change that. Nothing should change it.

    And yet, something must temper it, because our children aren’t actually our hearts. They aren’t extensions of us at all. They are whole human beings who deserve to choose their own paths and make their own mistakes. Even $70,000 mistakes. Even $70,000 mistakes that end up with upside-down mortgages and repo men in the driveway.

    Your son deserves the opportunity to make his own choices, but even if he didn’t, he will anyway. He’s an adult with a job that at least made a bank think he could afford a $70,000 car loan. You asked me, “Should we mind our business until he’s drowning in debt?” And the hard truth is, there’s nothing you can do regardless. A stern talking-to from his parents, being asked gentle, probing questions, receiving a passive-aggressive pile of cautionary tales in his inbox — none of it will save him if he’s made up his mind. And having already purchased this $70,000 truck, his mind seems pretty made up.

    None of this is to say you shouldn’t offer your wisdom, but take care not to frame it as criticism. Instead, share the experiences that taught you the importance of frugality and the danger of taking out unnecessary, gargantuan loans. Don’t mention it in reference to your son’s truck or spending habits but in the casual course of reminiscing or being vulnerable about your current finances.

    And as scary as it may be to watch, take heart in your own words: “My husband and I were diligent about teaching our children financial responsibility.” Trust this. If your other kids picked up on the lesson, be assured your son did too. He may be one of those people who has to learn the hard way. And possibly, he makes much more than you realize. One of the wealthiest people I know told me he “lays tile” for a living — his humble way of describing his role as the CEO of an extremely successful tile company. Your son might be really good at investing. The truth is, unless he tells you how much he makes, you don’t know.

    If he makes more than you realize, remember that your belief that only a “millionaire rancher” should buy a $70,000 truck is a personal opinion. For many people, travel, early retirement, or a palatial home is the goal. For others, it’s a brand-new pickup truck. You see cars as a mode of transportation; perhaps for your son, it’s the dream of a lifetime.

    Then again, maybe your read on this situation is 100% accurate, and he is heading for financial disaster. As painful as it may be to watch him fail, remember he has you. As parents, we can’t save our children from pain, hardship, and embarrassment, but we can make sure we’re there to catch them when they fall. And with you as a safety net, how hard can he land?

    Rooting for you,

    For Love & Money

    Looking for advice on how your savings, debt, or another financial challenge is affecting your relationships? Write to For Love & Money using this Google form.

    This article was originally published in December 2023.

    Read the original article on Business Insider

  • 2 credit cards offer up to 5% back when you buy a new house, but there’s a catch

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.

    a loving couple snuggles in front of a couch in a cozy living room while holding an iPad and a credit card
    Some credit cards earn rewards for buying a new home. Should you go for it?

    DekiArt/Getty Images

    • The Rocket Visa Signature® Card earns 5% cash back if you use rewards toward a Rocket Mortgage down payment and closing costs.
    • Bilt Rewards members earn 1 point per $2 spent on a new home when they buy with an eXp Realty agent.
    • But if you don’t use these companies, you’re better off with a more flexible cash-back credit card.

    If you hope to buy a home in the next year or two, you’re probably saving every spare penny toward your down payment and mortgage closing costs.

    Two credit cards claim they can help you get there more quickly: the Rocket Visa Signature® Card and Bilt Mastercard®.

    The Rocket Visa Signature® Card earns 5% cash back on all purchases — but only if you redeem those rewards toward the closing costs on your new home, and as long as your loan is through Rocket Mortgage. Furthermore, you can only redeem a maximum of 800,000 Rocket Points, or $8,000, per new mortgage loan.

    Meanwhile, new homebuyers who participate in Bilt Rewards can earn 1 Bilt Point per $2 on the total cost of a new home — as long as their real estate agent works under Bilt’s partner brokerage eXp Realty. Bilt Rewards is the company behind the popular Bilt Mastercard®, which lets renters pay rent on a credit card without incurring a transaction fee.

    Bilt Members can also redeem Bilt Points toward a down payment on any home, so this double benefit can be worth a good chunk of change.

    Both cards offer a tantalizing proposition for prospective homebuyers, many of whom find the American dream of home ownership more difficult than ever. But both cards also have some real limitations, since the savings only apply when you work with Rocket Mortgage or an eXp agent (or both).

    The good news is you don’t need a specialized card to save money as you prepare to buy a home. The best cash-back credit cards earn up to 5% on common household expenses.

    Rocket Visa Signature® Card

    The Rocket Visa Signature® Card is a great option for prospective homebuyers who plan to finance their purchase with a Rocket Mortgage loan.

    This no-annual-fee credit card earns 5 points for every $1 spent on all qualifying purchases — a generous rate that outstrips most of the standard cash back credit cards, since none earn 5% back on everything.

    Rocket Points vary in value based on how you redeem them. They’re worth the most — 1 cent apiece — when redeemed toward closing costs, down payment, or buying down your interest rate on a new home purchase financed through a Rocket Mortgage loan.

    You can redeem up to $8,000 (800,000 Rocket Points) per new Rocket Mortgage transaction. Using your rewards this way can save you tens of thousands of dollars in compound interest savings over the lifetime of your mortgage.

    Rocket Points are less valuable when redeemed in other ways. They’re worth just 0.4 cents apiece, or the equivalent of 2% cash back per dollar spent, when used to pay down your existing mortgage principle.

    And if you redeem your rewards as a statement credit on your card balance, they’re worth a measly 0.25 cents apiece, or the equivalent of 1.25% cash back.

    Bilt Rewards

    The Bilt Mastercard® is already becoming a household name for renters looking to maximize credit card rewards, and you can continue that relationship as you enter your homebuying era.

    This $0-annual-fee credit card () won’t cost you an additional fee to keep long-term, and earns great rewards on dining, travel, and other expenses especially on Bilt Rent Day, when most purchases, excluding rent, earn double points, up to 1,000 points each month. Note that you must make at least five transactions per statement period to earn points.

    You don’t even need to be a Bilt credit cardholder to earn Bilt Points — simply joining the Bilt Rewards program is sufficient. All Bilt Rewards program members can earn 1 point per $2 spent on a new home purchased through an eXp Realty real estate agent.

    The best way to maximize the value of your Bilt Points is by using them for travel. But if you’re buying a home, you can also redeem any points you’ve already earned up until this point as a credit toward your down payment, at a respectable value of 1.5 cents per point.

    If you buy a $500,000 house, you’d earn 250,000 Bilt Points. However, you wouldn’t be able to claim that windfall until your purchase is complete, since you can’t redeem points you don’t yet own. Once the Bilt Points from your home purchase reach your account, however, you can redeem them for travel, credit toward future credit card statements, and more.

    Since there’s no cap on how much you can earn on home purchase prices or redeem, Bilt members can come out way ahead with this program, especially because there aren’t any annual fees to factor in. And if you happen to utilize Rocket Mortgage for your loan as well, you could double-dip on both sets of savings: $8,000 in Rocket Mortgage credit, plus however many points you earn from your home purchase.

    What really matters when buying a house

    A standard-issue cash-back credit card may sound uninteresting when compared to the Rocket card’s 5% cash back in mortgage savings on everything, or 2 Bilt Points per dollar spent on a new house. But the most important aspect of buying a house is making sure that the home — and the homebuying process — is right for you.

    In the grand scheme of things, $8,000 or even 200,000 credit card points is small potatoes compared to the life-changing investment you’re about to make. Don’t allow the excitement of earning rewards distract you from finding a real estate agent you jive with and shopping around for a trustworthy lender with the best mortgage interest rates available to you.

    Getting the right mortgage is especially challenging in this day and age of high interest rates, and finding the right mortgage lender as a first-time buyer is a decision that will impact your life for decades to come.

    The case for cash-back credit cards

    Believe it or not, getting a credit card can actually help you buy a house; using one responsibly is a great way to build a strong credit history that can help you score a great mortgage rate on your dream home.

    Cash-back credit cards have their pros and cons, but they generally share a common trait: They’re easy to use. Whether you opt for a flat-rate 2% cash back credit card or choose one that earns 5% cash back on bonus categories, what you earn is what you keep.

    Many cash-back credit cards also don’t charge annual fees, so you can keep your card open for years without worrying how much it costs. This is especially valuable leading up to a new home purchase, when you need to maintain your credit score to buy a house and to get the best mortgage rate.

    If you’re wondering whether you can use your credit card to pay your mortgage, however, the answer is typically no. Lenders generally frown upon using debt to pay off other debt — your credit card represents a line of credit and your mortgage is a fixed monthly payment on the sum of what you owe for your house.

    But some credit card issuers are warming up to the idea, so stay tuned for new developments in credit cards that can be used for paying mortgage payments in months to come. Bilt claims it will begin allowing program members to pay mortgages in 2025, while new fintech company Mesa has an invite-only waitlist for a credit card designed for paying mortgages.

    In the meantime, you can use a service like Plastiq to pay your mortgage — or most check-based payments, for that matter — using your credit card, as long as you’re willing to pay a processing fee around 2.9% per transaction.

    When every penny counts, make sure your credit card rewards fit your lifestyle and your needs — not the other way around.

    Read the original article on Business Insider

  • I’m a financial planner, and I see people make 3 money mistakes all the time — but they’re easy to fix

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

    Eric Roberge Headshot COMPRESSED
    The author, Eric Roberge.

    Beyond Your Hammock

    • Most financial dilemmas don’t need an immediate answer — don’t feel like you need to rush.
    • Before committing money to any plan, figure out ways to test whether it’s really right for you.
    • Plan ahead — build a budget, automate your savings, and schedule a monthly check-in.

    As a financial planner, I’ve seen people make all sorts of money mistakes that could have easily been avoided with just a little bit of insight and education.

    Here are three big errors I often see people make that you can sidestep entirely if you know what to watch for.

    1. Always pushing for immediate action or answers

    Sometimes, you need to move fast to resolve a financial matter.

    There could be an actual, objective deadline, like a due date for bills or filing your taxes. Or there could be a cost to waiting, as there usually is with letting an investment or account management error go unresolved.

    But it’s a mistake to rush through bigger-picture and longer-term financial decisions like:

    • Deciding on your housing situation, from where to live to what type of housing you want to determine whether you should rent or buy
    • Considering your next career move or evaluating job offers
    • Setting very large goals, especially if you have a partner or significant other
    • Choosing the right investment strategy to help you reach those big long-term goals
    • Acting on anything that’s hard to reverse, very costly to undo, or both

    Slowing down can help you think more fully through the situation and even identify solutions you didn’t think of initially. Take some time to:

    • Have multiple conversations with a variety of sources about your questions or decisions to make. Gather as much information as possible from people who know you, have some credibility with you, and genuinely want to help you.
    • Schedule structured brainstorming sessions. Use this time to come up with potential tactics, options, paths forward, and so on. Anytime you feel you only have one or two ways of achieving something, push to come up with a third alternative. If you find yourself thinking “either/or,” brainstorm how you can make it “both/and.”
    • Let things play out a bit. When we start moving fast, we tend to gloss over critical details or jump to conclusions. Take time to gather more information, and to let your mind sift through the data you already gathered. New ideas appear when you give topics a rest!
    • Write out your thoughts as you go. Writing is an excellent way to clarify your thinking — or to identify when your thinking actually doesn’t make much sense.
    • Run things by an objective third-party or independent expert. Before you execute on a strategy, get a second set of eyes or an outside opinion on the situation to check your blind spots or point out potential errors.

    2. Committing to a major decision without a trial period

    A byproduct of rushing to get an answer or make a choice is another financial mistake: getting yourself into a big commitment that you didn’t give yourself a chance to test first.

    Take everything you can for a test drive first. Anytime you can test your ideas in the real world, you should take advantage of that opportunity.

    Thinking about switching jobs, or changing your career completely? See if there’s an opportunity to volunteer, pick up extra hours, or do preliminary training before you leave your current position or field to see if the new path still appeals to you.

    Want to move to a new location, whether that’s a different town or across the country? Rent a home in your location of interest. This makes it much easier and less costly to reverse course if you decide it’s not the place for you — with the added benefit of giving you a “boots on the ground” experience to help you understand the exact neighborhoods you may want to buy in (or which ones you want to avoid).

    If it’s not physically possible to give something a trial run before committing to it, you can still:

    • Run thought experiments around the idea
    • Sketch out a variety of different plausible scenarios that could play out and see how you feel about each
    • Make a list of “what if” questions and explore counterfactuals to your initial idea
    • Know your exit route and have a backup plan(s) ready to deploy

    3. Being reactive with your finances

    The fastest way to find yourself on a downhill trajectory with your money is to let things happen, and then wonder what there is to do about them.

    You put the focus on damage control rather than optimizing, elevating, and leveraging opportunities.

    Avoid this trap by getting proactive, paying attention, and planning ahead. If you’re not sure where to start, use this cheat sheet:

    • Use a budget to track and manage your earnings and spending
    • Build an emergency fund (start with $1,000 in cash, and consider building from there until you have enough savings to cover at least three months’ worth of your expenses)
    • Automate contributions to savings and retirement accounts; consider doing the same with bills or debts, but regularly review invoices and credit card statements for errors
    • Review any tax concerns each fall, so you have time to make adjustments before year-end deadlines
    • Look over all investment accounts quarterly to confirm your portfolio is properly balanced and all cash is invested
    • Set monthly money check-ins with yourself (and your partner if you have one) to review your finances, note any questions or concerns, and make a plan to address them

    Thinking and planning proactively can help you identify the right moves to make with your money before you start firing off decisions and locking in transactions.

    Read the original article on Business Insider

  • CD, Checking, and Savings Rates Today: Maximize Your Returns

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

    The clock is ticking on the high interest rates for deposits that we’ve come to expect. How can you be sure that you’re getting the best interest rate to earn money on your savings?

    We monitor rates from banks and credit unions daily to help you feel confident before you open a new account — and it’s looking like now is the time to lock in a high rate before APYs go off a cliff. Here are the top rates for popular banks on Friday, March 14.

    About High-Yield Accounts

    High-yield savings accounts aren’t the only accounts paying favorable rates right now. You’ll typically see the highest rates at online or lower-profile institutions rather than national brands with a significant brick-and-mortar presence. This is normal; online banks have lower overhead costs and are willing to pay high rates to attract new customers.

    High-Yield Savings Accounts

    The best high-yield savings accounts provide the security of a savings account with the added bonus of a high APY. Savings accounts are held at a bank or credit union — not invested through a brokerage account — and are best for saving cash in pursuit of shorter-term goals, like a vacation or big purchase. 

    High-Yield Checking Accounts

    The best high-yield checking accounts tend to pay slightly lower rates than high-yield savings, but even they are strong in today’s rate environment. A checking account is like a hub for your money: If your paycheck is direct deposited, it’s typically to a checking account. If you transfer money to pay a bill, you typically do it from a checking account. Checking accounts are used for everyday spending and usually come with checks and/or debit cards to make that easy.

    Money Market Accounts

    The best money market accounts could be considered a middle ground between checking and savings: They are used for saving money but typically provide easy access to your account through checks or a debit card. They usually offer a tiered interest rate depending on your balance.

    Cash Management Accounts

    A cash management account is also like a savings/checking hybrid. You’ll generally see them offered by online banks, and, unlike a checking account, they usually offer unlimited transfers. A savings account often limits the number of monthly transfers, while a checking account doesn’t. Cash management accounts typically come with a debit card for easy access, but you may have to pay a fee if you want to deposit cash.

    Certificates of Deposit

    The best CD rates may outpace any of the other accounts we’ve described above. That’s because a certificate of deposit requires you to “lock in” your money for a predetermined amount of time ranging from three months to five years. To retrieve it before then, you’ll pay a penalty (unless you opt for one of the best no-penalty CDs). The longer you’ll let the bank hold your money, the higher rate you’ll get. CD rates aren’t variable; the rate you get upon depositing your money is the rate you’ll get for the length of your term.

    About CD Terms

    Locking your money into an account in exchange for a higher interest rate can be a big decision. Here’s what you need to know about common CD terms.

    No-Penalty CDs

    Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won’t have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.

    6-Month CDs

    The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term. These can be a good option for those who may just be getting started with saving, or who don’t have a large emergency fund for unexpected expenses.

    1-Year CDs

    The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses. 

    2-Year CDs

    The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.

    3-Year CDs

    The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.

    5-Year CDs

    The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond — even if rates fall elsewhere.

    Read the original article on Business Insider

  • My financial goals right now are all about planning for the worst. I’m doing 5 things to prepare for uncertainty.

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Paid non-client promotion: Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate investing products to write unbiased product reviews.

    Jen Glantz
    The author, Jen Glantz.

    Jen Glantz

    • I’ve taken a lot of steps to improve my finances, but I’m not prepared for emergencies.

    At the start of the year, I took inventory of my finances and realized they were not emergency-proof. If I had to deal with a natural disaster, another pandemic, a health challenge, or another crisis, my finances wouldn’t hold up. Now that I’m a mom, I want to change this not only for myself but for my child.

    That’s why my main 2025 financial goal is emergency planning. Here are the five things I’m doing so I can protect my money and prepare for worst-case scenarios.

    1. Rebuild my emergency fund

    In my early 30s, I worked hard to build an emergency fund from scratch. I wanted to make sure that I had three to six months of living expenses saved up in case my income as a freelancer shifted.

    When the pandemic happened, a lot of my work opportunities disappeared, and I started dipping into that emergency fund. I haven’t replenished or grown the money inside that high-yield savings account in over three years.

    Since my income varies and can be easily affected by world events or my own personal health challenges, It’s important that I have an emergency fund in case my income drops.

    While it might take me a few years to fully rebuild my emergency fund, I’m aiming to contribute $500 a month to this account so that I can get back on track.

    2. Finally get life insurance

    My husband and I have been thinking about getting life insurance for a few years, but finding a plan kept falling lower on our to-do list. Now that we are parents, it’s essential to us that we both have life insurance policies to keep our finances afloat and provide for our daughter if one of us dies.

    One of the biggest disagreements my husband and I have is over what type of life insurance plan to get. I want whole life insurance coverage, and he wants term life insurance coverage. We realized we do not need to get the same plan and have set up an appointment to talk to an agent for more information.

    3. Grow my passive income streams

    I’ve been a solopreneur and freelancer since 2016. A lot of my income depends on how many hours a week I can work and how many new projects or clients I can book. But in recent years, I’ve taken on more of the childcare responsibilities in our household and have cut my work hours in half.

    While this is a decision I chose to make, and it does save us $3,000 to $4,000 a month in daycare or nanny costs, it also cuts down on how much money I’m able to contribute to our financial goals.

    In an effort to increase my income, I’ve decided to focus on expanding three passive income streams. That way, I can have ongoing revenue streams that don’t require my daily attention or in-person services.

    For example, I just launched a suite of AI speech and vow writing tools for my wedding business and a spin-off eulogy writing tool as well. These tools require a few hours a month of my time and bring in a few thousand dollars a month in income.

    4. Get disability insurance

    As a solopreneur for almost 10 years, one of the biggest financial risks I have taken is not having disability insurance.

    If something were to happen to me and I couldn’t work because of an illness or injury, this insurance policy would provide me with a monthly income to replace what I had lost.

    5. Build an estate plan

    After becoming a mom two years ago, I knew that it was important to have an estate plan in place. My husband and I just never got around to working with a lawyer on one.

    If one or both of us dies, the estate plan protects and carries out asset distribution, without having to involve the courts, which could be a lengthy and costly process.

    If both of us were to pass away, the estate plan would specify how our assets should be managed and distributed to our daughter while she’s still a minor.

    Read the original article on Business Insider

  • Savings, CD, and Checking Account Interest Rates Today: Earn Over 4% APY

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate banking products to write unbiased product reviews.

    The clock is ticking on the high interest rates on deposits that we’ve come to expect. With rates rapidly changing, how can you be sure that you’re getting the best interest rate?

    We monitor rates from banks and credit unions daily to help you feel confident before you open a new account — and now could be a great time to lock in a high rate before APYs go off a cliff. Here are the top rates for popular banks on Wednesday, March 12.

    About High-Yield Accounts

    High-yield savings accounts aren’t the only accounts paying favorable rates right now. You’ll typically see the highest rates at online or lower-profile institutions rather than national brands with a significant brick-and-mortar presence. This is normal; online banks have lower overhead costs and are willing to pay high rates to attract new customers.

    High-Yield Savings Accounts

    The best high-yield savings accounts provide the security of a savings account with the added bonus of a high APY. Savings accounts are held at a bank or credit union — not invested through a brokerage account — and are best for saving cash in pursuit of shorter-term goals, like a vacation or big purchase. 

    High-Yield Checking Accounts

    The best high-yield checking accounts tend to pay slightly lower rates than high-yield savings, but even they are strong in today’s rate environment. A checking account is like a hub for your money: If your paycheck is direct deposited, it’s typically to a checking account. If you transfer money to pay a bill, you typically do it from a checking account. Checking accounts are used for everyday spending and usually come with checks and/or debit cards to make that easy.

    Money Market Accounts

    The best money market accounts could be considered a middle ground between checking and savings: They are used for saving money but typically provide easy access to your account through checks or a debit card. They usually offer a tiered interest rate depending on your balance.

    Cash Management Accounts

    A cash management account is also like a savings/checking hybrid. You’ll generally see them offered by online banks, and, unlike a checking account, they usually offer unlimited transfers. A savings account often limits the number of monthly transfers, while a checking account doesn’t. Cash management accounts typically come with a debit card for easy access, but you may have to pay a fee if you want to deposit cash.

    Certificates of Deposit

    The best CD rates may outpace any of the other accounts we’ve described above. That’s because a certificate of deposit requires you to “lock in” your money for a predetermined amount of time ranging from three months to five years. To retrieve it before then, you’ll pay a penalty (unless you opt for one of the best no-penalty CDs). The longer you’ll let the bank hold your money, the higher rate you’ll get. CD rates aren’t variable; the rate you get upon depositing your money is the rate you’ll get for the length of your term.

    About CD Terms

    Locking your money into an account in exchange for a higher interest rate can be a big decision. Here’s what you need to know about common CD terms.

    No-Penalty CDs

    Most CDs charge you a fee if you need to withdraw money from your account before the term ends. But with a no-penalty CD, you won’t have to pay an early withdrawal penalty. The best no-penalty CDs will offer rates slightly higher than the best high-yield savings accounts, and can offer a substantially improved interest rate over traditional brick-and-mortar savings accounts.

    6-Month CDs

    The best 6-month CDs are offering interest rates in the mid-5% range. Six-month CDs are best for those who are looking for elevated rates on their savings for short-term gains, but are uncomfortable having limited access to their cash in the long term. These can be a good option for those who may just be getting started with saving, or who don’t have a large emergency fund for unexpected expenses.

    1-Year CDs

    The best 1-year CDs tend to offer some of the top CD rates, and are a popular option for many investors. A 1-year term can be an attractive option for someone building a CD ladder, or for someone who has a reasonable cash safety net but is still concerned about long-term expenses. 

    2-Year CDs

    The best 2-year CD rates will be slightly lower than 1-year and no-penalty CD rates. In exchange for a longer lock-in period, investors receive a long-term commitment for a specific rate. These are best used as part of a CD ladder strategy, or for those worried about a declining rate market in the foreseeable future.

    3-Year CDs

    The best 3-year CDs tend to have rates that are comparable to 2-year CDs. These are usually less popular for your average investor, but can be an important lever when diversifying investments and hedging against the risk of unfavorable rate markets in the long term.

    5-Year CDs

    The best 5-year CDs will offer lower rates than the other terms on our list, but are still popular options for investors. These CDs are best for those looking to lock in high rates for the long term. CDs are generally viewed as safe investment vehicles, and securing a favorable rate can yield considerable earnings in year three and beyond — even if rates fall elsewhere.

    Read the original article on Business Insider

  • I’m on track to retire wealthy, but there are still 4 money lessons I wish I’d learned before 40

    The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.

    Affiliate links for the products on this page are from partners that compensate us and terms apply to offers listed (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate products and services to help you make smart decisions with your money.

    photo
    The author, Holly Johnson.

    Holly Johnson

    • My husband and I are on track to retire wealthy, but we weren’t always smart with our money.
    • I wish we’d started investing sooner, and learned earlier that we could make more working for ourselves.
    • I’ve also learned that it’s possible to make some bad decisions and still do fine.

    When my husband and I started getting serious about our finances in our late 20s, we naturally thought we had everything figured out. We believed we would live intensely frugal lives and work toward paying off every cent of debt we had, and that’s exactly what we did. However, we never thought much about what happens next, or how our attitudes about money might dramatically change as we age.

    The reality is, we became self-employed somewhere along the way and started earning more money. And now that I’m 43, I can say with certainty that we’re financially independent and on track to retire wealthy when our kids leave the house in seven years.

    That said, there are some lessons I learned in my 30s and early 40s that I wish had clicked earlier, and for more reasons than one. Here’s an overview of what I wish I’d known about money when I was younger, and why.

    1. Earning more money changes everything

    The first lesson I wish I had learned earlier is just how impactful it can be to increase your earnings, especially since I only earned around $40,000 at my old 9-to-5 job. 

    No matter what anyone says to the contrary, there’s only so much you can save when you’re on a fixed income. You can cut your cable bill and start using a monthly meal plan. From there, other steps like buying a smaller home and shopping around for car insurance and homeowners insurance can only save so much. 

    Even worse, working in a traditional 9-to-5 job also means getting whatever raise you’re assigned to receive each year, if you get one at all. At my old job from more than a decade ago, I was pretty much limited to a 3% raise each year, no matter what.

    On the flip side, finding a way to earn more money can solve myriad problems while helping you invest for the future on a much faster timeline. If I could go back and change anything in this realm, I would have left my traditional job to become self-employed as early as possible instead of spending years wondering if I would be making the right move.

    For those who aren’t interested in self-employment, finding other ways to earn more can be a huge deal. This could mean taking on overtime at work, picking up a side hustle, or switching jobs to secure higher pay. 

    2. The power of compound interest is astonishing

    This lesson ties into the first one, but I really do wish we had begun investing for retirement at a much younger age. We actually opened 401(k) plans for the first time in our late 20s, and we only contributed a nominal percentage of our incomes at the time. Now that I know and understand the magic of compound interest, I wish we had contributed much more than we did.

    The fact is, investing as regularly and early as possible is the best way to benefit from compound interest so you can retire when you want, and on your own terms. After all, investing early lets you begin building up a nest egg that increases in value over time, and compound interest eventually lets you grow wealth off of wealth you already earned on your investments in the past.

    Just as an example, consider this financial scenario:

    Imagine you invest $1,500 a month for 30 years starting at age 30, which means you are making $540,000 in contributions over that time. If you earned an average yield of 7%, you would end the 30-year period at age 60 with just over $1.7 million.

    Now imagine you invest $2,250 for 20 years starting at age 40, which means you are making the same $540,000 in investments over a shorter timeline. With the same 7% yield, you would end the 20 years at age 60 with just over $1.106 million instead.

    3. You can make a lot of bad decisions and still do fine

    While my husband and I have made some really good financial decisions, we have made some pretty tragic ones, too. For example, we delayed investing for retirement as I already mentioned, and we overspent on remodeling our second home and sold it for a loss. 

    We also spent a ton of money trading in our cars for new ones during the first few years of our marriage, and we initially had our investments with a high-cost brokerage firm that charged pricey and unnecessary fees.

    As I’ve gotten older, however, I have realized you can make a lot of big mistakes and still do pretty well. You just have to have some good decisions mixed into the bad, and you have to focus on “getting ahead” slowly over time, even if you feel like you’re taking three steps forward and two steps back each year.

    Ultimately, my husband and I made lots of great decisions, including venturing into self-employment, investing a ton during our highest earning years, and avoiding debt for more than a decade and counting. While the mistakes from our past have held us back to a certain extent, the good decisions we have made more than made up for the difference.

    4. Mental energy is expensive

    In the last few years especially, I have learned that my mental energy must be preserved for the things in life that actually matter. This often means I am more than willing to pay for conveniences that help me stay sane, whether that means having my house cleaned on a regular basis or ordering groceries online so I can skip the store.

    This lesson took me a long time to learn, especially since I used to be so frugal. There were years in my life where I would spend hours trying to save a few bucks, whether through cutting coupons or driving from store to store to shop sales. 

    Now that I’m older, I would rather spend my free time working or relaxing with my kids. It took a decade, but I now know for sure that my time is better spent investing in my family or my work. Anything else that can be outsourced is, and I rarely worry about the cost.

    Ultimately, growing old is teaching me that money matters a lot, but not for the reasons I once thought. These days, I use money to buy freedom and time — the two things in life that are truly priceless.

    This article was originally published in November 2022.

    Read the original article on Business Insider