Milli Savings Account Review: 5.25% APY (App Only)

Posted on July 20, 2023 // 20 Comments

Milli is a new app-only savings account that is backed by the FDIC insurance of First National Bank of Omaha (FNBO). iOS and Android apps available. They came out of the gates at 5.00% APY but recently raised to 5.25% APY. Here are the highlights:

  • 5.25% APY as of 7/20/23
  • No monthly fees, no minimum balance required.
  • Ability to split money into multiple “Jars”.
  • App-only. Currently requires iPhone iOS 15.0+, or Android OS 8.0+.
  • Uses the Allpoint ATM network of 55,000 surcharge-free ATMs worldwide.
  • No paper checks. No checkwriting ability. No mobile check deposit.

For you rate chasers. this puts Milli newly at the top for a liquid savings account after my July 2023 interest rate update. We’ll see how long it lasts.

If anyone remembers FNBO Direct, that is still around at 3.75% APY. So there is a history of FNBO going trendy and grabbing some deposits with a competitive APY for a while. The term “online savings account” is now redundant. The new thing is app-only.

Reading through the various app reviews, the most common complaint seems to be getting denied for a new account after going through the whole application process and/or difficulty funding the new account. So be prepared for some account-opening hurdles.

Filed Under: Banking, Deals & Offers //

Amazon Prime Day 2023: Apple, Sony, Dyson, Gift Cards, Stuff I Own, What I Bought

Posted on July 12, 2023 // 7 Comments

Updates… Added some links below to products I own and recommend, that I saw on sale. This year, I bought… a really nice office chair finally as it was $200 off or so. Here is a “Buy Again” link where you can see if there is a Prime Day deal on the stuff that you’ve bought in the past. List of all current Prime deals (updated constantly).

(Note: If you are reading this in an email/RSS reader, unfortunately I am not allowed to include any Amazon affiliate links in e-mails, so they have been removed. Please click here to view the links.)

As the name suggests, most deals require a Prime membership. New members can sign up for a 30-day free trial. If you’ve already done the trial, you can simply buy a month of Prime for $14.99 ($6.99 with SNAP, EBT or Medicaid card).

Newest offers

Live Offers

Stuff I Own

  • Bose QC 45 Wireless Noise Canceling Headphones $199. I’m not an audiophile, but these feel great, work well on planes, and are built solid and reliable. Still own the QC 25 wired headphones as well which are now several years old.
  • Beco Gemini Baby Carrier. Used this for all three kids. Solidly built and comfortable.
  • COSORI Air Fryer 5 Qt. Love this air fryer. We use it just like a microwave, except it keeps things crispy instead of soggy. Easy to clean.
  • Vitamix 5200 blender. Had it for many years. Kitchen staple, sometimes we use it a lot, sometimes rarely, but it’s always there ready and powerful.
  • OXO Cold Brew Coffee Maker. I love my smooth cold brew coffee. Simple, easy to clean, works well as long as you have course ground coffee. Fine grind will clog up the filter. I use the Vitamix for a coarse grind from whole beans.
  • Infrared Forehead Thermometer. Bought a lot of thermometers the past few years. This model is the best. No contact. Consistent readings. Must have pulled that trigger a million times now.
  • Amazon Eero mesh WiFi router system (3-pack) – $126.99 (41% off). I bought this from a previous Prime Day and I would definitely buy it again. Just makes WiFi something you don’t worry about anymore. No more dead spots around the house.

Two free years of Grubhub+ membership ($240 value)

  • Amazon Prime members can enjoy a two free years of Grubhub+ membership (normally $9.99/month) with their Prime membership if they sign up by July 5th. Grubhub+ is a monthly membership offering unlimited $0 delivery fees on orders of $12+ (before tax, tip, and other applicable fees) at eligible restaurants.
  • After your free Grubhub+ membership ends, Grubhub will charge the payment method associated with your Grubhub account on a monthly basis at the then-current rate (currently $9.99/month). You can cancel any time by contacting Grubhub customer support or visiting the “Grubhub+ membership” section in your Grubhub account settings.

“Shop with Points” Promos (Check again if targeted)

Filed Under: Deals & Offers //

Best Interest Rates on Cash – July 2023

Posted on July 9, 2023 // 5 Comments

Here’s my monthly roundup of the best interest rates on cash as of July 2023, roughly sorted from shortest to longest maturities. There are often lesser-known opportunities available to individual investors. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you could earn from switching. Rates listed are available to everyone nationwide. Rates checked as of 7/8/2023.

TL;DR: 5% APY available on liquid savings. 5% APY available on multiple short-term CDs. Compare against Treasury bills and bonds at every maturity.

Fintech accounts
Available only to individual investors, fintech companies often pay higher-than-market rates in order to achieve fast short-term growth (often using venture capital). “Fintech” is usually a software layer on top of a partner bank’s FDIC insurance.

  • 5.15% APY ($1 minimum). SaveBetter lets you switch between different FDIC-insured banks and NCUA-insured credit unions easily without opening a new account every time, and their liquid savings rates currently top out at 5.15% APY from multiple banks. See my SaveBetter review for details. SaveBetter does not charge a fee to switch between banks.
  • 5.20% APY (before fees). MaxMyInterest is another service that allows you to access and switch between different FDIC-insured banks. You can view their current banks and APYs here. As of 7/8/23, the highest rate is from Customers Bank at 5.20% APY. However, note that they charge a membership fee of 0.04% per quarter, or 0.16% per year (subject to $20 minimum per quarter, or $80 per year). That means if you have a $10,000 balance, then $80 a year = 0.80% per year. This service is meant for those with larger balances. You are allowed to cancel the service and keep the bank accounts, but then you may lose their specially-negotiated rates and cannot switch between banks anymore.

High-yield savings accounts
Since the huge megabanks STILL pay essentially no interest, everyone should have a separate, no-fee online savings account to piggy-back onto your existing checking account. The interest rates on savings accounts can drop at any time, so I list the top rates as well as competitive rates from banks with a history of competitive rates. Some banks will bait you with a temporary top rate and then lower the rates in the hopes that you are too lazy to leave.

  • The leapfrogging to be the temporary “top” rate continues. CFG Bank at 5.17% APY. CIT Platinum Savings at 4.95% APY with $5,000+ balance.
  • SoFi Bank is now up to 4.30% APY + up to $275 new account bonus with direct deposit. You must maintain a direct deposit of any amount each month for the higher APY. SoFi has their own bank charter now so no longer a fintech by my definition. See details at $25 + $250 SoFi Money new account and deposit bonus.
  • There are several other established high-yield savings accounts at 4.00%+ APY that aren’t the absolute top rate, but historically do keep it relatively competitive for those that don’t want to keep switching banks.

Short-term guaranteed rates (1 year and under)
A common question is what to do with a big pile of cash that you’re waiting to deploy shortly (plan to buy a house soon, just sold your house, just sold your business, legal settlement, inheritance). My usual advice is to keep things simple and take your time. If not a savings account, then put it in a flexible short-term CD under the FDIC limits until you have a plan.

  • No Penalty CDs offer a fixed interest rate that can never go down, but you can still take out your money (once) without any fees if you want to use it elsewhere. CIT Bank has a 11-month No Penalty CD at 4.90% APY with a $1,000 minimum deposit. Ally Bank has a 11-month No Penalty CD at 4.25% APY for all balance tiers. Marcus has a 13-month No Penalty CD at 4.35% APY with a $500 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • Blue FCU via SaveBetter has a 9-month No Penalty CD at 5.00% APY. Minimum opening deposit is $1. No early withdrawal penalty. Withdrawals may be made 30 days after opening.
  • First Internet Bank has a 12-month certificate at 5.48% APY. $1,000 minimum. Early withdrawal penalty is 180 days of interest.

Money market mutual funds + Ultra-short bond ETFs*
Many brokerage firms that pay out very little interest on their default cash sweep funds (and keep the difference for themselves). * Money market mutual funds are regulated, but ultimately not FDIC-insured, so I would still stick with highly reputable firms. I am including a few ultra-short bond ETFs as they may be your best cash alternative in a brokerage account, but they may experience losses.

  • Vanguard Federal Money Market Fund is the default sweep option for Vanguard brokerage accounts, which has an SEC yield of 5.04%. Odds are this is much higher than your own broker’s default cash sweep interest rate.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 5.43% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 5.47% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

Treasury Bills and Ultra-short Treasury ETFs
Another option is to buy individual Treasury bills which come in a variety of maturities from 4-weeks to 52-weeks and are fully backed by the US government. You can also invest in ETFs that hold a rotating basket of short-term Treasury Bills for you, while charging a small management fee for doing so. T-bill interest is exempt from state and local income taxes.

  • You can build your own T-Bill ladder at TreasuryDirect.gov or via a brokerage account with a bond desk like Vanguard and Fidelity. Here are the current Treasury Bill rates. As of 7/7/23, a new 4-week T-Bill had the equivalent of 5.27% annualized interest and a 52-week T-Bill had the equivalent of 5.43% annualized interest.
  • The iShares 0-3 Month Treasury Bond ETF (SGOV) has a 5.12% SEC yield and effective duration of 0.10 years. SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a 4.98% SEC yield and effective duration of 0.08 years.

US Savings Bonds
Series I Savings Bonds offer rates that are linked to inflation and backed by the US government. You must hold them for at least a year. If you redeem them within 5 years there is a penalty of the last 3 months of interest. The annual purchase limit for electronic I bonds is $10,000 per Social Security Number, available online at TreasuryDirect.gov. You can also buy an additional $5,000 in paper I bonds using your tax refund with IRS Form 8888.

  • “I Bonds” bought between May 2023 and October 2023 will earn a 4.30% rate for the first six months. The rate of the subsequent 6-month period will be based on inflation again. More on Savings Bonds here.
  • In mid-October 2023, the CPI will be announced and you will have a short period where you will have a very close estimate of the rate for the next 12 months. I will have another post up at that time.
  • See below about EE Bonds as a potential long-term bond alternative.

Rewards checking accounts
These unique checking accounts pay above-average interest rates, but with unique risks. You have to jump through certain hoops which usually involve 10+ debit card purchases each cycle, a certain number of ACH/direct deposits, and/or a certain number of logins per month. If you make a mistake (or they judge that you did) you risk earning zero interest for that month. Some folks don’t mind the extra work and attention required, while others would rather not bother. Rates can also drop suddenly, leaving a “bait-and-switch” feeling.

  • Genisys Credit Union pays 5.25% APY on up to $7,500 if you make 10 debit card purchases of $5+ each, and opt into receive only online statements. Anyone can join this credit union via $5 membership fee to join partner organization.
  • Pelican State Credit Union pays 5.50% APY on up to $10,000 if you make 15 debit card purchases, opt into online statements, and make at least 1 direct deposit, online bill payment, or automatic payment (ACH) per statement cycle. Anyone can join this credit union via partner organization membership.
  • The Bank of Denver pays 5.00% APY on up to $25,000 if you make 12 debit card purchases of $5+ each, receive only online statements, and make at least 1 ACH credit or debit transaction per statement cycle. Thanks to reader Bill for the updated info.
  • All America/Redneck Bank pays 5.30% APY on up to $15,000 if you make 10 debit card purchases each monthly cycle with online statements.
  • Presidential Bank pays 4.62% APY on balances between $500 and up to $25,000 (3.625% APY above that) if you maintain a $500+ direct deposit and at least 7 electronic withdrawals per month (ATM, POS, ACH and Billpay counts).
  • Find a locally-restricted rewards checking account at DepositAccounts.

Certificates of deposit (greater than 1 year)
CDs offer higher rates, but come with an early withdrawal penalty. By finding a bank CD with a reasonable early withdrawal penalty, you can enjoy higher rates but maintain access in a true emergency. Alternatively, consider building a CD ladder of different maturity lengths (ex. 1/2/3/4/5-years) such that you have access to part of the ladder each year, but your blended interest rate is higher than a savings account. When one CD matures, use that money to buy another 5-year CD to keep the ladder going. Some CDs also offer “add-ons” where you can deposit more funds if rates drop.

  • NASA FCU has special 49-month CD at 4.85% APY and 15-month CD at 5.45% APY and 9-month at 5.65% APY. $10,000 minimum of new money. The early withdrawal penalty for the 5-year is 365 days of interest. Anyone can join this credit union via partner organization.
  • Lafayette Federal Credit Union has a 5-year certificate at 4.68% APY ($500 min), 4-year at 4.73% APY, 3-year at 4.84% APY, 2-year at 4.89% APY, and 1-year at 4.99% APY. They also have jumbo certificates with $100,000 minimums at even higher rates. The early withdrawal penalty for the 5-year is very high at 600 days of interest. Anyone can join this credit union via partner organization ($10 one-time fee).
  • You can buy certificates of deposit via the bond desks of Vanguard and Fidelity. You may need an account to see the rates. These “brokered CDs” offer FDIC insurance and easy laddering, but they don’t come with predictable early withdrawal penalties. Right now, I see a 5-year non-callable CD at 4.50% APY (callable: no, call protection: yes). Be warned that both Vanguard and Fidelity will list higher rates from callable CDs, which importantly means they can call back your CD if rates drop later.

Longer-term Instruments
I’d use these with caution due to increased interest rate risk, but I still track them to see the rest of the current yield curve.

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. You might find something that pays more than your other brokerage cash and Treasury options. Right now, I see a 10-year CDs at (none available, non-callable) vs. 4.06% for a 10-year Treasury. Watch out for higher rates from callable CDs where they can call your CD back if interest rates drop.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a unique guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate, currently 2.50% for EE bonds issued from May 2023 to October 2023. As of 7/7/23, the 20-year Treasury Bond rate was 4.27%.

All rates were checked as of 7/8/2023.

Filed Under: Banking, Deals & Offers, Investing //

Oxygen Fintech App: $100 Bonus for Personal Accounts, Free LLC Incorporation for Business Accounts

Posted on June 29, 2023 // 4 Comments

Oxygen is a fintech app that offers “tools and services for extraordinary entrepreneurs and business owners”, letting you have one app that easily alternates between personal and business bank accounts. Banking services are through The Bancorp Bank, Member FDIC. The app design is very modern and slick, but let’s be honest, I’m here for the features and perks.

For personal accounts, you can get a $100 bonus if you open a new account via referral link (example, please contact me if you’d like a fresh one) and then:

  • Receive a payroll direct deposit of $500 or more, and
  • make 5 debit card purchases within 60 days of opening an account.

The sign-up process is on the app, so you should either open the link via mobile device, or scan the QR code. The opening process was very easy and fast more me, I did not have to upload any additional scans of photo ID or similar. There was no credit check. I expect to knock out the debit card purchases quite easily between parking fees, Target Drive-Up orders, and Amazon reloads. I was able to sign-up and had my account and routing numbers in under 5 minutes. The referrer gets $100 as well for each successful referral, up to $1,000.

For business accounts, they offer a free LLC/S-Corp/C-Corp incorporation service, which can be worth $100+ as well. No special link required. Here are a few significant quotes of what they include:

  • “Incorporate your new business right from the Oxygen platform wherever you are in the US. We take care of the hard stuff, so you can focus on what matters. Building your business.”
  • “Choose between LLC, C-Corp and S-Corp. Get the setup that is right for your business type and size.”
  • “Our team of formation experts will verify your business name availability, prepare your Articles of Organization, coordinate filing all required documents with your Secretary of State, and digitally return all confirmations directly to your personalized dashboard.”
  • “Incorporation services include Articles of Organization, Federal Tax ID (EIN), one year free registered agent service, and a custom operating agreement.”

I don’t think I’ve seen free LLC formation as a “perk” before, so that is interesting.

Filed Under: Banking, Deals & Offers //

Fidelity Investments: $100 New Account Offer Includes IRAs, New and Existing Customers

Posted on June 26, 2023 // 26 Comments

Updated. Fidelity Investments is offering a $100 bonus for opening a Fidelity taxable brokerage account (“The Fidelity Account”), Cash Management Account (“CMA”), Roth IRA, or traditional IRA. You can also do the “Starter Pack” (Fidelity Account + CMA), but you can also open just a single account of any type. Hat tip to reader Chuck.

Open with the promo code FIDELITY100 and deposit $50 or more within 15 calendar days after opening your account. Fidelity will give you a $100 bonus within 25 days after opening your account. You must then maintain the bonus award (minus any losses related to trading or market volatility, or margin debit balances) in the account for at least 90 days from the date on which the bonus award is credited to the account.

Per the fine print, this is available to both new and existing customers who haven’t taken advantage of this offer before. Basically, you can already have other Fidelity accounts; they just want you to open an additional new account. You just can’t have done this bonus before.

This offer is valid for new or existing Fidelity Brokerage Services LLC or Fidelity Personal and Workplace Advisors LLC (“Fidelity”) customers who open through the following link https://www.fidelity.com/go/starter-pack and fund a new, eligible Fidelity account with a minimum of $50 on or after 3/9/2023 and have not otherwise previously taken advantage of Fidelity’s $50 for $100 cash offer, or Fidelity’s $50 for $150 cash offer. Offer is limited to one bonus award per individual.

You should receive a confirmation email:

As a confirmation of your registration, an email will be sent to the email address you provided during the account opening process after the eligible account has been established in good order.

Right now, I don’t know of any alternative Fidelity bonuses for transferring over new account assets from another broker.

This is a relatively simple and straightforward bonus, and the Fidelity Account offers solid customer service and a good feature set (decent cash sweep, no stock/ETF commissions, ability to buy Treasury bonds and brokered CDs). I would personally much rather trade stocks at Fidelity than deal with Robinhood customer service, for example. There are also bonuses available for their fintech Bloom and Youth brokerage accounts (13-17yo).

Filed Under: Deals & Offers, Investing //

Amazon Shop With Points Promos (Targeted): Use 1 Point, Save up to 40%

Posted on June 14, 2023 // Leave a Comment

Amazon lets you “Shop with Points” using many different loyalty programs including Chase Ultimate Rewards, American Express Membership Rewards, Citi ThankYou, and Discover. They also offer targeted promotions from time to time, and they seem to come back periodically even if you’ve used them before. I recommend quickly clicking on each of the links below to see if you are targeted at the moment and activate for an additional discount for redeeming a single penny’s worth of points. If you’re not targeted (I wasn’t this round), then just wait until next time.

(Note: If you are reading this in an email/RSS reader, unfortunately I am not allowed to include any Amazon affiliate links in e-mails, so they have been removed. Just click here to view the links.)

“Shop with Points” promo links

Filed Under: Credit Cards, Deals & Offers //

Bank of America Premium Rewards Card Review – 60,000 Point Offer, Best with Preferred Rewards

Posted on June 7, 2023 // 24 Comments

The Bank of America Premium Rewards Credit Card is the mid-tier premium card in the line-up, with added perks in exchange for an $95 annual fee. (Comparable with the Chase Sapphire Preferred and American Express Green cards.) This card also participates in the Preferred Rewards program, which gives you better rewards if you let BofA hold of your assets. Here are the highlights:

  • Earn 60,000 bonus points ($600 value) after making $4,000 in purchases in first 90 days of account opening.
  • Earn 2 points per dollar spent on travel and dining purchases.
  • Earn 1.5 points for each dollar spent on all other purchases.
  • 10% customer bonus when you have an active Bank of America checking or savings account.
  • If you’re a Preferred Rewards client, you can increase that bonus to 25% – 75%. See details below.
  • Up to $100 annual airline incidental statement credit for qualifying travel purchases such as seat upgrades, baggage fees, in-flight services and airport lounge fees.
  • Up to $100 airport security statement credit towards TSA Precheck or Global Entry Application fee, every four years.
  • No foreign transaction fees.
  • $95 annual fee.
  • No limit to earning points, and points don’t expire.

Preferred Rewards bonus. The Preferred Rewards program is designed to rewards clients with multiple account and higher assets located at Bank of America banking, Merrill Edge online brokerage, and Merrill Lynch investment accounts. Here is a partial table taken from their comparison chart (click to enlarge):

bofa_pref1

Let’s consider the options. Bank of America’s interest rates on cash accounts tend to be lower than highest-available outside banks, so moving cash over to qualify may result in earning less interest on your cash deposits. Merrill Lynch advisory accounts also usually come with management fees. The sweet spot is if you have brokerage assets like stocks, mutual funds, and ETFs.

In the past, moving over to Merrill Edge at the Platinum and Platinum Plus levels also led to 30 to 100 free online stock trades every month. Fast forward to now, and nearly all major online brokers offer commission-free trades anyway.

Personally, I moved over $100k of brokerage assets to Merrill Edge to qualify for Platinum Honors. This can include your existing ETFs and mutual funds held elsewhere (Vanguard, Fidelity, Schwab, etc). I realize not everyone will have this level of assets to move around, but if you do then it is worth considering. Keep in mind that it will take a while for your “3-month average combined balance” to actually reach the $100k level and officially qualify for Platinum Honors. You might become Gold first, then Platinum, and so on. After that, the 25%-75% rewards bonus on credit card rewards kick in.

Once you reach a certain tier, BofA guarantees that you will stay there for a year no matter what, even if your balance fluctuates. Note that the terms state “The Preferred Rewards bonus will replace the customer bonus”, which means that you will lose the 10% customer bonus when you qualify for the 25% to 50% bonus.

Here’s are the cash back rates after the Preferred Rewards bonuses:

  • Platinum Honors (75% bonus): 3.5% cash back on travel and dining, 2.625% cash back on all other purchases.
  • Platinum (50% bonus): 3% cash back on travel and dining, 2.25% cash back on all other purchases.
  • Gold (25% bonus): 2.5% cash back on travel and dining, 1.875% cash back on all other purchases.

Rewards comparison. This card has a more flexible rewards structure than their BankAmericard Travel Rewards card in that the points don’t have to offset a travel purchase. You can redeem at a flat 1 point = 1 cent value towards a statement credit or deposit into eligible Bank of America or Merrill Lynch® accounts (including deposit, investment or 529 accounts).

Getting a flat 2.625% (Platinum Honors) or 2.25% cash back (Platinum) on all purchases is a very solid base earning level. In terms of the competition, there are now multiple cash back cards in the 2% cash back range such as the Citi Double Cash Card with no annual fee. That means I wouldn’t bother with this card for everyday purchases if I wasn’t Platinum or Platinum Honors.

Also note that you can also earn similar levels of everything rewards (minus the travel/dining bonus category) but restricted to offsetting a travel-related purchase with the BankAmericard Travel Rewards card – except with no annual fee. The question then reverts back to if you can offset that $95 annual fee with the $100 annual incidental airline credit good towards seat upgrades, baggage fees, in-flight services and airport lounge fees. (Sadly, everything seems to be an added fee these days.) If you can get max value out of that airline incidental credit every year, then that removes the major disadvantage when compared to the BofA Travel Rewards card. You can then enjoy the added perks like the $500 value sign-up bonus, $100 Global Entry/TSA PreCheck credit once every 4 years, and the higher rewards on travel/dining bonus.

Bottom line. The Bank of America Premium Rewards Credit Card is rather average in basic form, but is elevated into an excellent card if you can qualify for the Platinum or Platinum Honors tiers of their Preferred Rewards program for up to 3.5% cash back on travel and dining and 2.625% cash back on all other purchases. Note the the $95 annual fee is not waived for the first year. Consider your ability to use up the $100 annual incidental airline credit.

Also see: Top 10 Best Credit Card Bonus Offers.

Filed Under: Credit Cards, Deals & Offers //

Best Interest Rates on Cash – June 2023

Posted on June 6, 2023 // 3 Comments

Here’s my monthly roundup of the best interest rates on cash as of June 2023, roughly sorted from shortest to longest maturities. There are often lesser-known opportunities available to individual investors. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you could earn from switching. Rates listed are available to everyone nationwide. Rates checked as of 6/6/2023.

TL;DR: 5% APY available on liquid savings. 5% APY available on multiple short-term CDs. Compare against Treasury bills and bonds at every maturity.

Fintech accounts
Available only to individual investors, fintech companies often pay higher-than-market rates in order to achieve fast short-term growth (often using venture capital). “Fintech” is usually a software layer on top of a partner bank’s FDIC insurance.

  • 5.05% APY ($1 minimum). SaveBetter lets you switch between different FDIC-insured banks and NCUA-insured credit unions easily without opening a new account every time, and their liquid savings rates currently top out at 5.05% APY from multiple banks. See my SaveBetter review for details. SaveBetter does not charge a fee to switch between banks.
  • 5.10% APY (before fees). MaxMyInterest is another service that allows you to access and switch between different FDIC-insured banks. You can view their current banks and APYs here. As of 5/1/23, the highest rate is from Customers Bank at 5.10% APY. However, note that they charge a membership fee of 0.04% per quarter, or 0.16% per year (subject to $20 minimum per quarter, or $80 per year). That means if you have a $10,000 balance, then $80 a year = 0.80% per year. You are allowed to cancel the service and keep the bank accounts, but then you may lose their specially-negotiated rates and cannot switch between banks anymore.

High-yield savings accounts
Since the huge megabanks STILL pay essentially no interest, everyone should have a separate, no-fee online savings account to piggy-back onto your existing checking account. The interest rates on savings accounts can drop at any time, so I list the top rates as well as competitive rates from banks with a history of competitive rates. Some banks will bait you with a temporary top rate and then lower the rates in the hopes that you are too lazy to leave.

  • The leapfrogging to be the temporary “top” rate continues. Salem Five Direct at 5.01% APY. CIT Platinum Savings at 4.85% APY with $5,000+ balance.
  • SoFi Bank is now up to 4.20% APY + up to $275 new account bonus with direct deposit. You must maintain a direct deposit of any amount each month for the higher APY. SoFi has their own bank charter now so no longer a fintech by my definition. See details at $25 + $250 SoFi Money new account and deposit bonus.
  • There are several other established high-yield savings accounts at 3.85%+ APY that aren’t the absolute top rate, but historically do keep it relatively competitive for those that don’t want to keep switching banks.

Short-term guaranteed rates (1 year and under)
A common question is what to do with a big pile of cash that you’re waiting to deploy shortly (plan to buy a house soon, just sold your house, just sold your business, legal settlement, inheritance). My usual advice is to keep things simple and take your time. If not a savings account, then put it in a flexible short-term CD under the FDIC limits until you have a plan.

  • No Penalty CDs offer a fixed interest rate that can never go down, but you can still take out your money (once) without any fees if you want to use it elsewhere. CIT Bank has a 11-month No Penalty CD at 4.90% APY with a $1,000 minimum deposit. Ally Bank has a 11-month No Penalty CD at 4.25% APY for all balance tiers. Marcus has a 13-month No Penalty CD at 4.25% APY with a $500 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • Blue FCU via SaveBetter has a 9-month No Penalty CD at 5.00% APY. Minimum opening deposit is $1. No early withdrawal penalty. Withdrawals may be made 30 days after opening.
  • CFG Bank has a 12-month certificate at 5.28% APY. $500 minimum. Early withdrawal penalty is 180 days of interest.

Money market mutual funds + Ultra-short bond ETFs*
Many brokerage firms that pay out very little interest on their default cash sweep funds (and keep the difference for themselves). * Money market mutual funds are regulated, but ultimately not FDIC-insured, so I would still stick with highly reputable firms. I am including a few ultra-short bond ETFs as they may be your best cash alternative in a brokerage account, but they may experience losses.

  • Vanguard Federal Money Market Fund is the default sweep option for Vanguard brokerage accounts, which has an SEC yield of 5.04%. Odds are this is much higher than your own broker’s default cash sweep interest rate.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 5.25% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 5.36% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

Treasury Bills and Ultra-short Treasury ETFs
Another option is to buy individual Treasury bills which come in a variety of maturities from 4-weeks to 52-weeks and are fully backed by the US government. You can also invest in ETFs that hold a rotating basket of short-term Treasury Bills for you, while charging a small management fee for doing so. T-bill interest is exempt from state and local income taxes.

  • You can build your own T-Bill ladder at TreasuryDirect.gov or via a brokerage account with a bond desk like Vanguard and Fidelity. Here are the current Treasury Bill rates. As of 6/6/23, a new 4-week T-Bill had the equivalent of 5.09% annualized interest and a 52-week T-Bill had the equivalent of 5.23% annualized interest.
  • The iShares 0-3 Month Treasury Bond ETF (SGOV) has a 4.96% SEC yield and effective duration of 0.10 years. SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a 4.75% SEC yield and effective duration of 0.08 years.

US Savings Bonds
Series I Savings Bonds offer rates that are linked to inflation and backed by the US government. You must hold them for at least a year. If you redeem them within 5 years there is a penalty of the last 3 months of interest. The annual purchase limit for electronic I bonds is $10,000 per Social Security Number, available online at TreasuryDirect.gov. You can also buy an additional $5,000 in paper I bonds using your tax refund with IRS Form 8888.

  • “I Bonds” bought between May 2023 and October 2023 will earn a 4.30% rate for the first six months. The rate of the subsequent 6-month period will be based on inflation again. More on Savings Bonds here.
  • In mid-October 2023, the CPI will be announced and you will have a short period where you will have a very close estimate of the rate for the next 12 months. I will have another post up at that time.
  • See below about EE Bonds as a potential long-term bond alternative.

Rewards checking accounts
These unique checking accounts pay above-average interest rates, but with unique risks. You have to jump through certain hoops which usually involve 10+ debit card purchases each cycle, a certain number of ACH/direct deposits, and/or a certain number of logins per month. If you make a mistake (or they judge that you did) you risk earning zero interest for that month. Some folks don’t mind the extra work and attention required, while others would rather not bother. Rates can also drop suddenly, leaving a “bait-and-switch” feeling.

  • Genisys Credit Union pays 5.25% APY on up to $7,500 if you make 10 debit card purchases of $5+ each, and opt into receive only online statements. Anyone can join this credit union via $5 membership fee to join partner organization.
  • Pelican State Credit Union pays 5.50% APY on up to $10,000 if you make 15 debit card purchases, opt into online statements, and make at least 1 direct deposit, online bill payment, or automatic payment (ACH) per statement cycle. Anyone can join this credit union via partner organization membership.
  • The Bank of Denver pays 5.00% APY on up to $25,000 if you make 12 debit card purchases of $5+ each, receive only online statements, and make at least 1 ACH credit or debit transaction per statement cycle. Thanks to reader Bill for the updated info.
  • All America/Redneck Bank pays 5.30% APY on up to $15,000 if you make 10 debit card purchases each monthly cycle with online statements.
  • Presidential Bank pays 4.62% APY on balances between $500 and up to $25,000 (3.625% APY above that) if you maintain a $500+ direct deposit and at least 7 electronic withdrawals per month (ATM, POS, ACH and Billpay counts).
  • Find a locally-restricted rewards checking account at DepositAccounts.

Certificates of deposit (greater than 1 year)
CDs offer higher rates, but come with an early withdrawal penalty. By finding a bank CD with a reasonable early withdrawal penalty, you can enjoy higher rates but maintain access in a true emergency. Alternatively, consider building a CD ladder of different maturity lengths (ex. 1/2/3/4/5-years) such that you have access to part of the ladder each year, but your blended interest rate is higher than a savings account. When one CD matures, use that money to buy another 5-year CD to keep the ladder going. Some CDs also offer “add-ons” where you can deposit more funds if rates drop.

  • NASA FCU has special 49-month CD at 4.85% APY and 15-month CD at 5.45% APY and 9-month at 5.65% APY. $10,000 minimum of new money. The early withdrawal penalty for the 5-year is 365 days of interest. Anyone can join this credit union via partner organization.
  • Lafayette Federal Credit Union has a 5-year certificate at 4.68% APY ($500 min), 4-year at 4.73% APY, 3-year at 4.84% APY, 2-year at 4.89% APY, and 1-year at 4.99% APY. They also have jumbo certificates with $100,000 minimums at even higher rates. The early withdrawal penalty for the 5-year is very high at 600 days of interest. Anyone can join this credit union via partner organization ($10 one-time fee).
  • You can buy certificates of deposit via the bond desks of Vanguard and Fidelity. You may need an account to see the rates. These “brokered CDs” offer FDIC insurance and easy laddering, but they don’t come with predictable early withdrawal penalties. Right now, I see a 5-year non-callable CD at 4.50% APY (callable: no, call protection: yes). Both Vanguard and Fidelity will list higher rates from callable CDs, which importantly means they can call back your CD if rates drop later.

Longer-term Instruments
I’d use these with caution due to increased interest rate risk, but I still track them to see the rest of the current yield curve.

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. You might find something that pays more than your other brokerage cash and Treasury options. Right now, I see a 10-year CDs at (none available, non-callable) vs. 3.70% for a 10-year Treasury. Watch out for higher rates from callable CDs where they can call your CD back if interest rates drop.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a unique guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate, currently 2.50% for EE bonds issued from May 2023 to October 2023. As of 6/6/23, the 20-year Treasury Bond rate was 4.02%.

All rates were checked as of 6/6/2023.

Filed Under: Banking, Deals & Offers, Investing //

Andrews FCU 7.5-Month Certificate at 5.75% APY

Posted on June 4, 2023 // 5 Comments

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Andrews FCU is celebrating their 75th anniversary with a special 7.5 month certificate at a very competitive 5.75% APY. $1,000 minimum opening deposit, $250,000 maximum. Limit one certificate per membership. Early withdrawal penalty is 90 days of interest, per their Truth in Savings disclosure.

Previous short-term special term certificates have automatically been set to renew at the 12-Month share certificate rate and term upon maturity. You must manually tell them if you want to simply withdraw, be sure to do so within the grace period of 10 days after the date of maturity.

Credit union membership eligibility. From their page on membership eligibility:

Our field of membership includes Washington, DC, civilian and military personnel of Joint Base Andrews, Joint Base McGuire-Dix-Lakehurst, and military installations in central Germany, Belgium, and The Netherlands; as well as over 200 employer groups throughout Maryland, Virginia and New Jersey. We also have nationwide membership eligibility through the American Consumer Council.

As I do not live the in DC area and do not qualify otherwise, I joined the American Consumer Council (ACC), a non-profit organization dedicated to consumer education, advocacy and financial literacy. Sounds like something worth supporting! You can join through the website. I believe the cost is a one-time $8, although there is a promo code “consumer” that has worked in the past to get the membership fee waived. They will send you an e-mail shortly with your ACC membership number, which you can use to join Andrews FCU.

Note that applying for this credit union will result in a hard credit inquiry. Andrews FCU has useful promos from time to time and you may find their other financial loan products useful. I am already a member from a previous promotion.

Filed Under: Banking, Deals & Offers //

Target: Buy $100 in Choice Gift Cards, Get $10 Target Gift Card

Posted on June 4, 2023 // Leave a Comment

Target is running a promotion where if you get a $10 Target GiftCard with $100 “Choice” gift card purchase, in-store or online. Promo ends June 10th.

I’m guessing this is related to Father’s Day. (The Mother’s Day promo was better, what’s up?!) There are many eligible retailers to choose from: Regal/AMC Theaters to REI to Lowe’s/Home Depot.

Disclosure: This post contains affiliate links and I will be compensated if you make a purchase after clicking on my links.

Filed Under: Deals & Offers //

AllAmerica and Redneck Bank: 4.40% APY Money Market (up to $100k), 4.65% APY Rewards Checking (up to $15k)

Posted on May 23, 2023 // 6 Comments

Update 10/14/24: Rates dropped to 4.40% APY on up to $100,000 for Mega Money Market and 4.65% APY on up to $15,000 for Rewards Checking (debit card usage and other requirements apply). Details below.

Update 7/9/24: Rates dropped to 4.75% APY on up to $100,000 for Mega Money Market and 5.00% APY on up to $15,000 for Rewards Checking (debit card usage and other requirements apply). Details below.

All America Bank and Redneck Bank are sister internet banks that offer the same types of accounts (with different marketing shtick). Looking back in my archives, I actually opened an account with them way back in 2009 (later closed), as they offer a simple product lineup and have intermittent periods where they are very competitive with interest rates. (There are also some periods where they choose to lag.) Looks like they are looking to attract deposits again, recently raising both their interest rates and their balance caps.

Mega Money Market

  • 4.75% APY on up to $100,000. Amounts over $100,000 earn 0.50% APY.
  • No debit card transactions required.
  • $500 minimum to open an account. No ongoing minimum balance requirement.
  • Must agree to receive online statements only.
  • Limit of one Mega Money market account allowed per individual. (I believe you can have one account at each bank, though.)
  • Technically a money market checking account which means it includes a debit card (you can pay for checks too) but is still limited to six withdrawals per month. This limits its functionality to more like a savings account.

Rewards Checking

  • 5.00% APY on up to $15,000. Amounts over $15,000 earn 0.50% APY.
  • 10 debit card transactions required per monthly statement cycle. Monthly statement cycle ends on the 20th of each month. If the 20th falls on a Saturday, the cycle will end on Friday the 19th. If the 20th falls on a Sunday, the cycle will end on Monday the 21st. ATM and ACH transfers don’t count.
  • $500 minimum to open an account online. No ongoing minimum balance requirement.
  • Must agree to receive online statements only.
  • Limit of two (2) Rewards Checking Accounts allowed per individual. (I believe you can have two accounts at each bank.)
  • A full-featured checking account with online billpay, ATM rebates (up to $25 per month), and mobile check deposit abilities.

Note that both are under the FDIC insurance certificate of All America Bank (#20093), so you should be careful not to exceed the $250,000 limit across both banks (a reminder that the $250k limit is per depositor, per insured bank, for each account ownership category).

Filed Under: Banking, Deals & Offers //

List of 529 Day (5/29) College Savings Plan Promotions 2023

Posted on May 22, 2023 // 9 Comments

Updated for 2023. 5/29 is “National 529 College Savings Plan Day” and every year a few state plan offer promotions and/or giveaways. Most offers end by May 31st. Some offers require in-state residency, but some don’t. 529 plans can now also pay for K-12 tuition and other educational expenses beyond college tuition and room/board.

I find that having an open 529 plan is a great way to redirect various cash gifts from friends and family (like grandparents) so that the money doesn’t just get spent mindlessly and then forgotten. Finally, opening a plan and making any contribution also starts the 15-year clock on potential future 529-to-Roth IRA rollovers.

Here’s a list of what I could find, please let me know if you find more. I’m listing the state, but you do not have to be a resident of that state to open a 529 account there. You can have multiple 529s from different states. However, you may need to be a resident to qualify for a specific bonus, or there may be an age restriction on the beneficiary, etc.

Filed Under: College & Education, Deals & Offers //
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