Target Deal Days 2021: 5% Off Gift Cards 6/16-6/19

Posted on June 8, 2021 // 2 Comments

In an amazing coincidence, Target is having their Target Deal Days from June 20-22, overlapping with Amazon Prime Day. The tagline is “3 days of spellbinding savings with no membership fees”. New deals will be added every day, with the following 5% gift card discount beforehand:

From June 16–19, Target GiftCards are 5% off on Target.com (Target Circle offer valid online only. $500 limit. Terms & conditions apply). For even more discounts every day, join our free loyalty program Target Circle and reach for your Target RedCard. Let the savings begin!

The 5% discount is not as good as the 10% off in previous years, but the $500 purchase limit is higher. I’ll try to update this post with any specific deals of interest that are announced.

Filed Under: Deals & Offers //

Best Interest Rates on Cash – Monthly Update June 2021

Posted on June 2, 2021 // 4 Comments

Here’s my monthly roundup of the best interest rates on cash as of June 2021, roughly sorted from shortest to longest maturities. I try to find lesser-known opportunities to improve your yield while keeping your principal FDIC-insured or equivalent. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you’d earn by moving money between accounts. Rates listed are available to everyone nationwide. Rates checked as of 6/2/2021.

Fintech accounts
Available only to individual investors, fintech companies oftentimes pay higher-than-market rates in order to achieve fast short-term growth (often using venture capital). I define “fintech” as a software layer on top of a different bank’s FDIC insurance. These do NOT require a certain number debit card purchases per month. Although I do use some of these after doing my own due diligence, read about the Beam app for potential pitfalls and best practices.

  • 3% APY on up to $100,000. The top rate is 3% APY for April through June 2021, and they have not indicated any upcoming rate drop. HM Bradley requires a recurring direct deposit every month and a savings rate of at least 20%. See my HM Bradley review.
  • 3% APY on 10% of direct deposits + 1% APY on $25,000. One Finance lets you earn 3% APY on “auto-save” deposits (up to 10% of your direct deposit, up to $1,000 per month). Separately, they also pay 1% APY on up to another $25,000 with direct deposit. New customer $50 bonus via referral. See my One Finance review.
  • 3% APY on up to $15,000. Porte requires a one-time direct deposit of $1,000+ to open a savings account. New customer $50 bonus via referral. See my Porte review.
  • 1.20% APY on up to $50,000. OnJuno recently updated their rate tiers, while keeping their promise to existing customers a grandfathered rate. If you don’t maintain a $500 direct deposit each month, you’ll still earn 1.20% on up to $5k. See my updated OnJuno review.

High-yield savings accounts
While the huge megabanks pay essentially no interest, it’s easy to open a new “piggy-back” savings account and simply move some funds over from 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.

  • T-Mobile Money is still at 1.00% APY with no minimum balance requirements. The main focus is on the 4% APY on your first $3,000 of balances as a qualifying T-mobile customer plus other hoops, but the lesser-known perk is the 1% APY for everyone. Thanks to the readers who helped me understand this. There are several other established high-yield savings accounts at closer to 0.50% APY.

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 (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. Marcus has a 7-month No Penalty CD at 0.45% APY with a $500 minimum deposit. AARP members can get an 8-month CD at 0.55% APY. Ally Bank has a 11-month No Penalty CD at 0.50% APY for all balance tiers. CIT Bank has a 11-month No Penalty CD at 0.30% APY with a $1,000 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • Lafayette Federal Credit Union has a 12-month CD at 0.80% APY ($500 min). Early withdrawal penalty is 6 months of interest. Anyone can join this credit union via partner organization ($10 one-time fee).

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). Unfortunately, money market fund rates are very low across the board right now. Ultra-short bond funds are another possible alternative, but they are NOT FDIC-insured and may experience short-term losses at times. These numbers are just for reference, not a recommendation.

  • The default sweep option is the Vanguard Federal Money Market Fund which has an SEC yield of 0.01%. Vanguard Cash Reserves Federal Money Market Fund (formerly Prime Money Market) currently pays 0.01% SEC yield.
  • Vanguard Ultra-Short-Term Bond Fund currently pays 0.31% SEC yield ($3,000 min) and 0.41% SEC Yield ($50,000 min). The average duration is ~1 year, so your principal may vary a little bit.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 0.24% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 0.36% 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. 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. Right now, this section isn’t very interesting as T-Bills are yielding close to zero!

  • 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 6/2/2021, a new 4-week T-Bill had the equivalent of 0.01% annualized interest and a 52-week T-Bill had the equivalent of 0.05% annualized interest.
  • The Goldman Sachs Access Treasury 0-1 Year ETF (GBIL) has a -0.08% SEC yield and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a -0.12% (!) SEC yield. GBIL appears to have a slightly longer average maturity than BIL.

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 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 2021 and October 2021 will earn a 3.54% rate for the first six months. The rate of the subsequent 6-month period will be based on inflation again. More info here.
  • In mid-October 2021, 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.

Prepaid Cards with Attached Savings Accounts
A small subset of prepaid debit cards have an “attached” FDIC-insured savings account with exceptionally high interest rates. The negatives are that balances are severely capped, and there are many fees that you must be careful to avoid (lest they eat up your interest). There is a long list of previous offers that have already disappeared with little notice. I don’t personally recommend nor use any of these anymore, as I feel the work required and risk of messing up exceeds any small potential benefit.

  • Mango Money pays 6% APY on up to $2,500, if you manage to jump through several hoops. Requirements include $1,500+ in “signature” purchases and a minimum balance of $25.00 at the end of the month.

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.

  • The Bank of Denver pays 2.00% 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. The rate recently dropped. If you meet those qualifications, you can also link a Kasasa savings account that pays 1.00% APY on up to $50k. Thanks to reader Bill for the updated info.
  • Devon Bank has a Kasasa Checking paying 2.50% APY on up to $10,000, plus a Kasasa savings account paying 2.50% APY on up to $10,000 (and 0.85% APY on up to $50,000). You’ll need at least 12 debit transactions of $3+ and other requirements every month.
  • Presidential Bank pays 2.25% APY on balances up to $25,000, if you maintain a $500+ direct deposit and at least 7 electronic withdrawals per month (ATM, POS, ACH and Billpay counts).
  • Evansville Teachers Federal Credit Union pays 3.30% APY on up to $20,000. You’ll need at least 15 debit transactions and other requirements every month.
  • Lake Michigan Credit Union pays 3.00% APY on up to $15,000. You’ll need at least 10 debit transactions and other requirements every month.
  • 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 Federal Credit Union has a special 49-month Share Certificate at 1.40% APY ($10,000 min). Early withdrawal penalty is 1 year of interest. Anyone can join this credit union by joining the National Space Society (free). Note that NASA FCU may perform a hard credit check as part of new member application.
  • Abound Credit Union has a 59-month Share Certificate at 1.30% APY ($500 min) and a special 37-month Share Certificate at 1.15% APY ($500 min). Early withdrawal penalty is 1 year of interest (and only with the consent of the credit union, so be aware). Anyone can join this credit union via partner organization ($10 one-time fee).
  • Lafayette Federal Credit Union has a 5-year CD at 1.26% APY ($500 min). Early withdrawal penalty is 6 months 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 don’t see anything available at a 5-year maturity. Be wary of higher rates from callable CDs listed by Fidelity.

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 CD at 1.80% APY vs. 1.59% for a 10-year Treasury. Watch out for higher rates from callable CDs from Fidelity.
  • 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 which is quite low (currently 0.10%). I view this as a huge early withdrawal penalty. But if holding for 20 years isn’t an issue, it can also serve as a hedge against prolonged deflation during that time. Purchase limit is $10,000 each calendar year for each Social Security Number. As of 6/2/2021, the 20-year Treasury Bond rate was 2.21%.

All rates were checked as of 6/2/2021.

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

Emergency Broadband Benefit: $50/Month Off Home Internet For Low-Income, Job Loss, and Furloughed Workers

Posted on May 23, 2021 // Leave a Comment

The Emergency Broadband Benefit Program provides a temporary discount on monthly broadband bills for qualifying households. This program is separate and in addition to the the existing Lifeline program. They have only been running for a week and over 1 million households have signed up. Learn more and apply at GetEmergencyBroadband.org and this FCC Consumer FAQ. Here’s an excerpt on eligibility (emphasis mine).

A household is eligible if one member of the household meets at least one of the criteria below:

Has an income that is at or below 135% of the Federal Poverty Guidelines or participates in certain assistance programs, such as SNAP, Medicaid, or Lifeline;
Approved to receive benefits under the free and reduced-price school lunch program or the school breakfast program, including through the USDA Community Eligibility Provision in the 2019-2020 or 2020-2021 school year;
Received a Federal Pell Grant during the current award year;
Experienced a substantial loss of income due to job loss or furlough since February 29, 2020 and the household had a total income in 2020 at or below $99,000 for single filers and $198,000 for joint filers; or
Meets the eligibility criteria for a participating providers’ existing low-income or COVID-19 program.

I bolded the part that I believe includes a broader group that may not realize they qualify for this assistance. Here is the documentation that they will require you to submit if you experienced job loss or furlough:

If you experienced a substantial loss of income since February 29, 2020 because you lost your job or were furloughed, you may qualify for the EBB Program.

You will have to show proof of the job loss or furlough, like a termination letter or furlough notice, as well as proof of your total income, like a tax return or official documentation containing income information when you apply for the EBB Program. To qualify in this way, your total household income in 2020 must be at or below $99,000 (for single tax filers) and $198,000 (for joint tax filers).

Here’s a quick summary of the benefits:

The Emergency Broadband Benefit will provide a discount of up to $50 per month towards broadband service for eligible households and up to $75 per month for households on qualifying Tribal lands. Eligible households can also receive a one-time discount of up to $100 to purchase a laptop, desktop computer, or tablet from participating providers if they contribute more than $10 and less than $50 toward the purchase price.

Not every single broadband provider offers the Emergency Broadband Benefit, but most do; Look for your provider here. Some providers may force you to switch to a different plan.

Once approved, the $50/month discount will appear automatically on your broadband bill. You can get the discount even if you have a past due balance, and you can sign up for new service if you don’t have existing service.

Filed Under: Deals & Offers //

PFS Buyers Club: NEW US Mint Coin Arbitrage Opportunity ($290+ Net Profit)

Posted on May 20, 2021 // 40 Comments

(Update: This 5/24 opportunity is no longer available. You can still sign up for an account and be alerted of the next opportunity roughly 48 hours prior.)

New deal May 24th, 2021. The US Mint regularly releases limited-edition coins to collectors. The coin sets are often limited by household. PFS Buyers Club is a website broker that recruits regular folks to buy their allotted coin set with a set markup amount, with the agreement that they will sell only to PFS Buyers Club. For example, you might pay $300 for a coin and they’ll agree to pay you $350 for it – a fixed profit of $50.

On Monday, May 24th at 12:00 pm Noon Eastern Time, there is a new guaranteed profit opportunity. You can buy up to 10 sets of two different limited-edition Morgan Silver dollars. You can buy 10 of each coin at $85 each plus $4.95 shipping, which should cost you $854.95. PFS will pay you $1000 ($145.05 commission) for those 10 coins. If you do this for both of the two sets, you will spend $1,709.90 and get paid $2,000 for a total profit of $290.10. One minor wrinkle on this offer is that they don’t expect to ship until October, but they also won’t charge your card until October.

Note that the eventual value of the set may exceed that elsewhere – you may be able to get $120 for each coin on eBay, for example – but if you want to make that bet, don’t promise to sell to PFS Buyers Club. Just buy it on your own and try to sell it yourself. Keep in mind that eBay seller fees can be quite high, and you’ll be responsible for other costs like the proper shipping with adequate insurance. PFS Buyers Club will send you a free prepaid mailing label (including insurance) and pay you via eCheck, paper check, or PayPal.

You’ll also earn credit card rewards on your purchase (worth another $34.20 here at 2% cash back), or also possibly satisfying the requirements for some $500+ value credit card bonuses. This makes the total net profit safely over $300. Note the October wrinkle above though for timing purposes. (Added: There is concern that American Express and Fidelity credit cards might not award points on US Mint purchases, so to be safe I would use alternative cards.)

My past experience. I used PFS back in March for the first time, and everything went smoothly and I was paid my money in full without issue. The amount of communication was great and better than expected; I was kept up-to-date every step of the way. The total time commitment was about 30 minutes for $400+ profit, including the stop at the Fedex store to drop off the box with prepaid label. The eCheck option worked great – I printed the check out at home and deposited immediately via mobile app. PFS has a very solid reputation online, and I referred several blog readers last time and did not receive a single complaint. (Some folks were unable to buy the coins from the US Mint itself.)

Here are the two coins: Morgan 2021 Silver Dollar w/ O Mark and Morgan 2021 Silver Dollar w/ CC Mark. Here is a direct quote of the deal text:

On Monday, May 24th, at 12:00PM ET the US Mint will be releasing two limited edition Morgan Silver Dollars. Each has a purchase limit of ten per household, so you’re able to buy ten of each. The cost of each Silver Dollar is $85.00, and when adding the $4.95 shipping charge, each order will total $854.95.

You will have each order shipped to your own house or office and then ship it to PFS Buyers Club with a prepaid shipping label that we will provide for you. Please note: The Mint only intends on shipping these “beginning in October”. They will not charge your credit card until they ship.

PFS will be offering a commission of $145.05 for each order for a total payout of $1,000.00. To be clear, you have the opportunity to place two orders of $854.95 each or $1,709.90 in total, and we’ll be paying you $2,000.00 for a total profit of $290.10! This is also a great opportunity to earn valuable points/miles on your credit cards, as well as meet any spending thresholds..

If you want to jump on this, you can sign up to join PFS Buyers Club here. Sometimes these deals fill up, so I would sign-up and opt-in sooner rather than later. You can still opt out of the deal until an hour prior to the coins going on sale. They will provide very detailed instructions. Follow them carefully, and it was pretty easy for me as a first-time buyer. If you use that link, I will receive a referral fee if you successfully sell your coin for a profit. Thanks for those that use it, and for those that already used it last time! I will be opting in myself as well.

Filed Under: Credit Cards, Deals & Offers //

Big List of Car Demand Notes (GM, Ford, Toyota) & Other Non-FDIC Deposit Accounts: Up to 1.50% Interest

Posted on May 17, 2021 // 4 Comments

Interest rates remain very low, which makes people more willing to take some risk for “just a little bit higher” interest rates. This has renewed interest in the financing arms of many automotive brands that offer “demand notes” which they use to fund the loans and leases they need to make to sell cars. (Can you imagine how much fewer new cars would be sold without financing?)

These demand notes allow you to “demand” your money back at any time, while they can also end the program at any time (as Ally recently did). Importantly, they pay a higher variable interest rate than most FDIC-insured high-yield savings accounts. Equally importantly, although it functions like a bank, it is not a bank and thus your money is not covered by FDIC insurance. You are buying unsecured debt backed by a finance company (not necessarily the actual car maker), and if it struggles, you may lose principal. Here is a list of some available options on the market:

GM Financial Right Notes

  • Current interest rate: 1.50% (as of 5/17/21)
  • Minimum initial investment: $500
  • Fitch credit rating: BBB-
  • Restricted to GM/GM Financial US employees and retirees, US employees of GM dealerships, GM customers, and GM stockholders.

The GM Financial Right NotesSM program is a direct investment in demand notes issued by General Motors Financial Company, Inc. Right Notes pay a variable rate of interest and are redeemable at any time. An investment in the Right Notes does not create a bank account or a money market fund and is not FDIC insured.

Toyota IncomeDriver Notes

  • Current interest rate: 1.35% (as of 5/17/21)
  • Minimum initial investment: $500
  • Fitch credit rating: A+

The IncomeDriver Notes® program is a direct investment in senior notes issued by Toyota Motor Credit Corporation (“TMCC”). IncomeDriver Notes® pay a variable rate of interest and are redeemable at any time. IncomeDriver Notes® are not a bank account or a money market fund and are not FDIC insured.

Mercedes-Benz First Class Notes

  • Current interest rate: 1.10% (as of 5/17/21)
  • Minimum investment: $10,000 to avoid $5 monthly fee
  • Fitch credit rating: n/a
  • Restricted to accredited investors only.

An investment in the First Class Demand Notes program does not create a FDIC insured bank account. All investments are senior, unsecured debt obligations of Mercedes-Benz Financial Services and are not insured or guaranteed by anyone else.

Ford Interest Advantage Notes

  • Current interest rate: 0.45% to 0.65% (depending on balance, as of 5/17/21)
  • Minimum investment: $1,000
  • Fitch credit rating: BB+

The Notes issued under the Ford Interest Advantage Program are unsecured debt obligations of Ford Motor Credit Company LLC. They are not insured by the Federal Deposit Insurance Corporation, they are not guaranteed by Ford Motor Company, and they do not constitute a bank account.

Caterpillar PowerInvestment Notes

  • Current interest rate: 0.05% to 0.20% (depending on balance, as of 5/17/21)
  • Minimum investment: $250
  • Fitch credit rating: A

An investment in the Cat Financial PowerInvestment notes allows individuals and institutions to benefit from the financial strength of Caterpillar Financial Services Corporation. It is important to note that Cat Financial PowerInvestment is not a money market account, which is typically a diversified fund consisting of short-term debt securities of many issuers. An investment in the PowerInvestment notes does not meet the diversification and investment quality standards set forth for money market funds by the Investment Company Act of 1940.

Dominion Energy Reliability Investment Notes

  • Current interest rate: 1.25% to 1.50% (depending on balance, as of 5/17/21)
  • Minimum investment: $1,000
  • Fitch credit rating: BBB+

Dominion Energy Reliability Investment is not considered to be a deposit or other bank account, and is not subject to the protection of Federal Deposit Insurance Corporation (FDIC) regulation or insurance, or any other insurance. The investments are direct purchases of new debt obligations of Dominion Energy.

Duke Energy PremierNotes

  • Current interest rate: 0.45% to 0.65% (depending on balance, as of 5/17/21)
  • Minimum investment: $1,000 to avoid $10 monthly fee
  • Fitch credit rating: Withdrawn

No, the notes are not equivalent to a deposit or other bank account, and are not subject to the protection of Federal Deposit Insurance Corporation (FDIC) regulation or insurance, or any other insurance. The notes are direct investments in new debt obligations of Duke Energy.

Also see: WSJ article #1, WSJ article #2, Bogleheads forum discussion, Early Retirement forum discussion.

Financial advisers, however, often advise clients against tying up their money in one company. Those who rely on fixed-income payments as a form of income, such as retirees, should particularly avoid such concentration, says Larry Swedroe, chief research officer at Buckingham Strategic Wealth.

“I would want to buy a huge portfolio of hundreds of these so I wouldn’t have the idiosyncratic risk of Toyota,” he said. “The average investor buying this stuff is not going to be able to analyze the risk in each of these floating rate notes.”

My take. Given that US Treasury rates out to 1 year maturity are only paying 0.06% right now and most online savings account are paying around 0.50%, it’s easy to see how these rates can be attractive. However, not only are these notes not FDIC-insured, they are not even as safe as money market funds, which are diversified amongst multiple different investment-grade companies. With these demand notes, you are investing in the unsecured debt of a single company. I don’t feel like having to pay attention to the credit rating of a company for my cash. In 2008, Lehman Brothers’ bonds were rated AA by S&P just days before they went bankrupt. The eventual recovery rate on Lehman bonds was only about 20 cents on the dollar. Stuff happens.

In addition, bank accounts are regulated differently than securities sold through prospectus (where they detail all potential risks). For example, Regulation E provides the following consumer protection: As long as I notify the bank within a timely fashion, my liability for an unauthorized electronic fund transfers, including those arising from loss or theft of an access device, is limited to $50. Fifty bucks. These demand notes are not covered by the same consumer protections.

Finally, you have to consider all your available options. I personally have no plans to invest in any of these demand notes as with similar effort, I can get higher interest rates on my cash from FDIC-insured sources. I’m already earning 3% APY on up to $100,000 by moving over part of my direct deposit, with other additional options available. See my latest monthly interest rate roundup (future updates linked on right sidebar or in the Banking category). If the Toyota demand notes were paying over 3%, I might become interested.

Bottom line. The financial arms of major car makers (and a few energy companies) are offering higher interest rates through accounts that function like a savings account (flexible deposits and withdrawals, limited checkwriting). However, these are not FDIC-insured, but really unsecured debt involves the possible loss of principal. You have to decide if that added risk is adequately compensated by the higher interest. If you’re willing to open a new account to chase higher rates, there may be other options available that maintain FDIC insurance.

Filed Under: Banking, Deals & Offers //

Chase Co-Branded Credit Cards: Free 12 Months of DoorDash DashPass

Posted on May 12, 2021 // 2 Comments

Chase has expanded their partnership with DoorDash (and Caviar) to offer free DashPass membership for 12 months to co-branded Chase credit cards. DashPass is a subscription service that offers a $0 delivery fee and reduced service fees for subscribers when ordering $12 or more from any DashPass-eligible restaurant (look for the checkmark). The regular price is $9.99/month. Eligible cards include:

  • Chase Southwest cards
  • Chase Marriott cards
  • Chase United cards
  • Chase Disney cards
  • Chase IHG cards
  • Chase British Airways cards
  • Chase Aer Lingus cards
  • Chase Iberia cards
  • Chase World of Hyatt cards

You must activate here. Note that after those free 12 months, you’ll automatically be charged $9.99/month for continued membership unless you cancel DashPass.

If you have a Chase Sapphire Reserve or Sapphire Preferred credit card, you can also get free DashPass benefits on eligible orders for at least 12 months (and a maximum of 24 months) after activation. Sapphire Reserve cardholders also get $60 in statement credits towards DoorDash in 2021.

If you have a Chase Freedom or Slate credit card, you can free DashPass benefits on eligible orders for 3 months after activation. After the first 3 months, the user will be auto-enrolled for the next 9 months in DashPass with a 50% discount applied to the then current membership rate. You can cancel at any time.

If you are new customer to DoorDash and sign up via my DoorDash referral link, you will get $10 off your first 3 DoorDash orders over $15 ($30 total savings). I will get food credits as well. Thanks if you use it!

Filed Under: Credit Cards, Deals & Offers //

U.S. Bank Altitude Connect Visa Signature Card Review: 50,000 Point Bonus + 4X Points on Travel/Gas

Posted on May 10, 2021 // 2 Comments

US Bank continues its credit card expansion with the new U.S. Bank Altitude Connect Visa Signature Card, a premium travel rewards card which has a headline feature of 4X points on travel and gas stations, plus 2X points on dining and grocery stores. There is also a launch offer of 50,000 bonus points worth $500 cash via statement credits. Here are the details:

  • 50,000 bonus points after you spend $2,000 in the first 120 days. 50,000 points can be redeemed for a $500 statement credit.
  • 4X points per dollar spent on travel and gas stations.
  • 2X points per dollar spent on grocery stores, grocery delivery, dining and streaming services.
  • 1 point per dollar spent on all other eligible net purchases.
  • Up to $100 towards TSA PreCheck® or Global Entry® application fee reimbursement via statement credit, once every four years.
  • $30 annual streaming credit. $30 credit for annual streaming service purchases such as Netflix and Spotify®.
  • Cell phone protection. Up to $600 reimbursement if your cell phone is stolen or damaged when you pay your monthly cell phone bill with your card.
  • No foreign transaction fees
  • $0 annual fee the first year, $95/year thereafter.

$30 annual streaming bonus details. If you charge at least one eligible video or music streaming service ever month onto this card, you’ll get 2X points per dollar spent, and also a $30 streaming service credit after 11 months of streaming service purchases. Eligible services include Netflix, HBO Max, Hulu, Disney+, Sling TV, YouTube TV, Vudu, AT&T TV Now, Apple Music, Google Music, Spotify, Amazon Music Unlimited, Tidal, SiriusXM, and Pandora. A clever little incentive to keep you actively using this card.

An automatic statement credit of $30 per 12-month period will be applied to your U.S. Bank Altitude Connect Visa Signature Card Account within 2 statement billing cycles following 11 consecutive calendar months of eligible streaming service purchases, such as Netflix, Hulu, Apple Music, if the Account is in good standing (open and able to use).

Overall thoughts. Even beyond the attractive sign-up bonus, this card looks very solid. Most of the major spending categories are covered by the 2X/4X tiers: travel, gas stations, grocery stores, dining out, and streaming. The TSA PreCheck fee reimbursement, $30 annual streaming credit, and cell phone protection also add ongoing value. The annual fee is waived during the first year, so there is no upfront cost to trying this card out.

Based on the rewards structure and annual fee, this cards will compete directly with the highly-popular Chase Sapphire Preferred card. Note that earning Ultimate Rewards points may be more attractive to those that can maximize the value of airline miles and/or hotel points. However, if you prefer to redeem for straight cash (statement credits), this US Bank card has higher multipliers on travel and gas stations, and thus likely higher rewards when comparing cash back amounts.

You may also compare this with the U.S. Bank Altitude Reserve Credit Card, which has more rewards but also a much higher annual fee.

Bottom line. The new U.S. Bank Altitude Connect Visa Signature Card offers a competitive 4X points on travel and gas stations, plus 2X points on dining out and grocery store purchases. Right now, new applicants can score a sign-up bonus worth $500 with the annual fee waived during the first year. This is definitely going on the Top 10 Best Credit Card Bonus Offers, especially as it is one of the few that I don’t already have.

Filed Under: Credit Cards, Deals & Offers //

Chase Business Complete Checking: $300 Bonus

Posted on May 10, 2021 // Leave a Comment

Run a small business? Chase Bank has a Business Complete Checking account promotion offering a $300 bonus for new customers. You enter your e-mail address, and you should be sent a unique promo offer code for your online application. Some of the language suggests you should reside near a physical Chase branch, but the link lets you apply online. If you already have a Chase business credit card or other Chase business profile, the application can be pre-filled. Here are the requirements for the bonus:

  • Open a new Chase Business Complete Checking account using the offer shown below. This offer expires 4/21/22.
  • Deposit a total of $2,000 or more in new money within 30 days of coupon enrollment and maintain a $2,000 balance for 60 days.
  • Complete 5 qualifying transactions within 90 days of coupon enrollment. Qualifying transactions include debit card purchases, Chase QuickAccept deposits, Chase QuickDeposit, ACH (Credits), wires (Credits and Debits).

Note the following fine print:

* You can receive only one new business checking account opening related bonus every two years from the last enrollment date and only one bonus per account.

Account Closing: If the checking account is closed by the customer or Chase within six months after coupon enrollment, we will deduct the bonus amount for that account at closing.

Avoid the $15 monthly service fee on Business Complete Checking when you do at least one of the following each statement period.

  • Maintain a minimum daily balance of $2,000 in your account as of the beginning of each day of the statement period; OR
  • Spend at least $2,000 in purchases (minus returns or refunds) using your Chase Ink® Business Card(s) that shares a business legal name with the Chase Business Complete Checking account, using each of their most recently completed monthly card billing period(s); OR,
  • Deposit $2,000 into your Chase Business Complete Checking account from your QuickAccept and/or other eligible Chase Merchant Services transactions at least one business day prior to the last day of your bank account statement period; OR,
  • Maintain a linked Chase Private Client Checking? account.

Sole proprietorships and single-member LLCs are eligible (see below). If the application process is similar to their business credit cards, they may ask for documentation such as Articles of Incorporation.

Note: Only privately held businesses structured as sole proprietorships, corporations or limited liability companies (LLCs) managed by a single member or manager can apply online at this time.

Bottom line. If you run a small business, Chase is offering a very solid bonus on their Complete Business checking account. You can earn a $300 cash bonus with a $2,000 deposit held for 60 days, generating 5 transactions, and maintaining a $2,000+ balance for another 4 months after that to avoid the monthly service fees. You can find the offer below.

Filed Under: Banking, Deals & Offers //

Best Interest Rates on Cash – May 2021

Posted on May 9, 2021 // 2 Comments

Here’s my monthly roundup of the best interest rates on cash as of May 2021, roughly sorted from shortest to longest maturities. Included are some lesser-known opportunities to improve your yield while keeping your principal FDIC-insured or equivalent. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you’d earn by moving money between accounts. Rates listed are available to everyone nationwide. Rates checked as of 5/9/2021.

Fintech accounts
Available only to individual investors, fintech accounts oftentimes pay higher-than-market rates in order to achieve high short-term growth (often using venture capital). I define “fintech” as a software layer on top of a different bank’s FDIC insurance. These do NOT require a certain number debit card purchases per month. Although I do use some of these after doing my own due diligence, read about the Beam app for potential pitfalls and best practices.

  • 3% APY on up to $100,000. The top rate is 3% APY for April through June 2021, and they have not indicated any upcoming rate drop. HM Bradley requires a recurring direct deposit every month and a savings rate of at least 20%. See my HM Bradley review.
  • 3% APY on 10% of direct deposits + 1% APY on $25,000. One Finance lets you earn 3% APY on “auto-save” deposits (up to 10% of your direct deposit, up to $1,000 per month). Separately, they also pay 1% APY on up to another $25,000 with direct deposit. New customer $50 bonus via referral. See my One Finance review.
  • 3% APY on up to $15,000. Porte requires a one-time direct deposit of $1,000+ to open a savings account. New customer $50 bonus via referral. See my Porte review.
  • 2.15% APY on up to $5k/$30k. Limited-time offer of free membership to their higher balance tier for 6 months with direct deposit. See my OnJuno review.

High-yield savings accounts
While the huge megabanks pay essentially no interest, it’s easy to open a new “piggy-back” savings account and simply move some funds over from 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.

  • T-Mobile Money is still at 1.00% APY with no minimum balance requirements. The main focus is on the 4% APY on your first $3,000 of balances as a qualifying T-mobile customer plus other hoops, but the lesser-known perk is the 1% APY for everyone. Thanks to the readers who helped me understand this. There are several other established high-yield savings accounts at closer to 0.50% APY.

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 (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. Marcus has a 7-month No Penalty CD at 0.45% APY with a $500 minimum deposit. AARP members can get an 8-month CD at 0.55% APY. Ally Bank has a 11-month No Penalty CD at 0.50% APY for all balance tiers. CIT Bank has a 11-month No Penalty CD at 0.30% APY with a $1,000 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • Lafayette Federal Credit Union has a 12-month CD at 0.80% APY ($500 min). Early withdrawal penalty is 6 months of interest. Anyone can join this credit union via partner organization ($10 one-time fee).

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). Unfortunately, money market fund rates are very low across the board right now. Ultra-short bond funds are another possible alternative, but they are NOT FDIC-insured and may experience short-term losses in extreme cases. These numbers are just for reference, not a recommendation.

  • The default sweep option is the Vanguard Federal Money Market Fund which has an SEC yield of 0.01%. Vanguard Cash Reserves Federal Money Market Fund (formerly Prime Money Market) currently pays 0.01% SEC yield.
  • Vanguard Ultra-Short-Term Bond Fund currently pays 0.37% SEC yield ($3,000 min) and 0.47% SEC Yield ($50,000 min). The average duration is ~1 year, so your principal may vary a little bit.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 0.29% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 0.41% 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. 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. Right now, this section isn’t very interesting as T-Bills are yielding close to zero!

  • 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 5/7/2021, a new 4-week T-Bill had the equivalent of 0.01% annualized interest and a 52-week T-Bill had the equivalent of 0.05% annualized interest.
  • The Goldman Sachs Access Treasury 0-1 Year ETF (GBIL) has a -0.01% SEC yield and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a -0.12% (!) SEC yield. GBIL appears to have a slightly longer average maturity than BIL.

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 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 2021 and October 2021 will earn a 3.51% rate for the first six months. The rate of the subsequent 6-month period will be based on inflation again. More info here.
  • In mid-October 2021, 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.

Prepaid Cards with Attached Savings Accounts
A small subset of prepaid debit cards have an “attached” FDIC-insured savings account with exceptionally high interest rates. The negatives are that balances are severely capped, and there are many fees that you must be careful to avoid (lest they eat up your interest). There is a long list of previous offers that have already disappeared with little notice. I don’t personally recommend nor use any of these anymore, as I feel the work required and risk of messing up exceeds any small potential benefit.

  • Mango Money pays 6% APY on up to $2,500, if you manage to jump through several hoops. Requirements include $1,500+ in “signature” purchases and a minimum balance of $25.00 at the end of the month.

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.

  • The Bank of Denver pays 2.00% 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. The rate recently dropped. If you meet those qualifications, you can also link a Kasasa savings account that pays 1.00% APY on up to $50k. Thanks to reader Bill for the updated info.
  • Devon Bank has a Kasasa Checking paying 2.50% APY on up to $10,000, plus a Kasasa savings account paying 2.50% APY on up to $10,000 (and 0.85% APY on up to $50,000). You’ll need at least 12 debit transactions of $3+ and other requirements every month. The rate recently dropped.
  • Presidential Bank pays 2.25% APY on balances up to $25,000, if you maintain a $500+ direct deposit and at least 7 electronic withdrawals per month (ATM, POS, ACH and Billpay counts).
  • Evansville Teachers Federal Credit Union pays 3.30% APY on up to $20,000. You’ll need at least 15 debit transactions and other requirements every month.
  • Lake Michigan Credit Union pays 3.00% APY on up to $15,000. You’ll need at least 10 debit transactions and other requirements every month.
  • 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 Federal Credit Union has a special 49-month Share Certificate at 1.40% APY ($10,000 min). Early withdrawal penalty is 1 year of interest. Anyone can join this credit union by joining the National Space Society (free). Note that NASA FCU may perform a hard credit check as part of new member application.
  • Lafayette Federal Credit Union has a 5-year CD at 1.26% APY ($500 min). Early withdrawal penalty is 6 months 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 CD at 1.00% APY vs. 0.77% for a 5-year Treasury. Be wary of higher rates from callable CDs listed by Fidelity.

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 CD at 1.80% APY vs. 1.60% for a 10-year Treasury. Watch out for higher rates from callable CDs from Fidelity.
  • 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 which is quite low (currently 0.10%). I view this as a huge early withdrawal penalty. But if holding for 20 years isn’t an issue, it can also serve as a hedge against prolonged deflation during that time. Purchase limit is $10,000 each calendar year for each Social Security Number. As of 5/7/2021, the 20-year Treasury Bond rate was 2.17%.

All rates were checked as of 5/9/2021.

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

Amazon Explore: Virtual Live Travel Experiences (First Free for Prime Members, Up to $50 Value)

Posted on April 21, 2021 // Leave a Comment

Amazon Explore allows you to virtually “travel” and explore a new place with your own personal tour guide. There are tours, educational classes, interactive shows, and personal shoppers. For the tours, it appears that you get the equivalent of a Zoom/FaceTime/WebEx call with someone who actually lives in Australia/Venice/Tokyo and they take you around in an interactive experience. Currently, Prime members can get their first live virtual experience free (up to $50 value) with promo code FREEFUN.

You pick the specific time and date at the time of purchase. Since it is live, be aware that your experience may be in a very different time zone. Here are some quick links that caught my eye:

I hope the kids like their private magic show!

Hat tip to Doctor of Credit.

Filed Under: Deals & Offers //

OhmConnect: Get Paid For Saving Energy One Hour Per Week ($25 Sign-Up Bonus, CA Only)

Posted on April 15, 2021 // 8 Comments

Updated, new limited-time $25 bonus. OhmConnect works with consumers and their local utilities to lower energy costs and save money together. Before reading any further, it appears that cash payments are only for customers of PG&E, SDG&E or Southern California Edison in California. Here’s how it works:

  • Get notified: The utility lets us know that a time of intense demand is coming up and we notify you about it via an email or SMS. This is usually one hour a week between 5-9 pm when solar energy is not available.
  • Reduce: OhmConnect community members reduce our energy usage by turning off lights, giving our thermostats a break and not using electronics. (The easiest way to do this is by having your thermostat connected and smart plugs attached to your home’s biggest energy hogs.)
  • Get rewarded: The utility saves money by avoiding having to turn on their dirty and expensive “peaker plants”. The utility pays OhmConnect, which in turn passes on 80% to you.

Rewards include cash via PayPal, Amazon gift cards, and/or Target gift cards. Supposedly, you can earn $100 to $300 a year. If you connect any smart home devices like a Nest thermostat or an electric vehicle, you can earn extra bonuses and also automate your participation. OhmConnect participation is free and does not affect your existing utility service.

If you are a California resident and customer of PG&E, SDG&E or Southern California Edison, sign up for OhmConnect here and link your account and get a $25 bonus. This is a limited-time offer during April 2021 (Earth Month), as their usual bonus is only $10. You will also be able to then refer others for a $50 bonus if they open a new account and link a utility. That is my referral link, thanks if you use it.

Seems like a reasonably win-win-win arrangement if you reduce pollution while you’re at it. I wrote about this first back in 2017, but just got the e-mail about the limited-time Earth Month bonus boost. Please feel free to share your experiences with OhmConnect if you’ve used them for a while.

Filed Under: Deals & Offers //

Fidelity Spire App $100 Bonus, Fidelity Go Roboadvisor Warning

Posted on April 13, 2021 // 7 Comments

Updated, including new bonus and tax warning. Fidelity Spire is Fidelity’s new mobile app, which adds fintech-y features and is separate from their main Fidelity app. You can link your external accounts, track balances, and set financial goals. (Fidelity acquired fintech startup eMoney in 2015, and is using that technology for account aggregation.) You can also link up “real” Fidelity accounts like their brokerage accounts and perform commission-free trades within the app.

New $100 Fidelity account bonus. If you open a new, eligible Fidelity account via the Spire app or fidelity.com/spire and maintain an automatic monthly deposit of $25+ for 6 months, you can get a $100 bonus. Hat tip to DoC.

  • You must open via the Fidelitiy Spire app or specific link above, not anywhere else.
  • Eligible accounts include The Fidelity Account®, Fidelity® Cash Management account, Fidelity Roth IRA, or a Fidelity traditional IRA.
  • You must establish a monthly Fidelity Automatic Account Builder (FAAB) plan, an automated deposit feature, on your newly established account for at least $25. First deposit must be within 45 days of opening, and must come from an external, non-Fidelity source. The automatic monthly deposit must remain in effect for at least 6 months (or 6 monthly deposits of at least $25).
  • Bonus limited to $100 per individual in 2021.

Fidelity doesn’t offer bonuses very often, so even though it is not that big, it’s still something if you were planning on opening an account anyway.

While not eligible for the bonus, they are also offering their new Fidelity Go robo-advisor service that automatically invests for you, with no minimum to start and the following fee structure:

  • $10,000 or less: No advisory fee
  • $10,000 to $49,999: Flat $3 a month
  • $50,000 or more: 0.35% annually

The flat fee structure for assets under $50,000 is interesting. At $10,000 in assets, $36 dollars a year = 0.36% annually. At $49,999 in assets, $36 dollars a year = 0.07% annually.

In addition, the underlying mutual funds also offer zero expense ratios. Fidelity actually created a new line of mutual funds called Fidelity Flex Funds for their managed accounts, similar to their other passive and actively-managed mutual funds but with zero expense ratios. For example, there is a Fidelity Flex 500 Fund and a Fidelity Flex International Index fund. However, this special also comes with a drawback.

As with other roboadvisors, the portfolio they choose will be based on you filling out a relatively short online questionnaire. If you aren’t sure about the resulting asset allocation, I recommend going back and change your answers to see the effects. With Fidelity Go, you do not gain access to financial advice from a human advisor. However, you will still gain access to their phone/live chat customer service, which has traditionally been rated highly.

Warning: If you decide to move your money out of Fidelity Go in a taxable account, they will force you to sell all your proprietary Flex fund shares and potentially incur capital gains taxes. If you just owned regular ETFs or mutual funds, you should be able to export the shares “in-kind” without selling and maintain your cost basis. I know you can do this with Betterment and Wealthfront. Depending on how much your account grew, you could consider this a significant “exit fee”.

This is why I still prefer to DIY and construct a portfolio using “high-quality interchangeable parts” that I can keep forever. You can still use Fidelity as I think they are reputable firm with overall good customer service, but instead just buy something like Vanguard Total US Market ETF (VTI) or iShares Core Total US (ITOT).

With free trades now available nearly everywhere, the primary “cost” is the hassle of doing the trades yourself. This is why I recommend also looking at M1 Finance, as they will maintain your target asset allocation for free while still allowing your the ability to port out your investments at any time.

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