List of Free Educational Resources (and Free High-Speed Data)

Posted on March 16, 2020 // 4 Comments

Here is a list of newly-available resources to help folks manage having their kids home all day long for weeks at a time! From getting free data to free lesson plans and materials.

Free Data Access

  • All four major US carriers — AT&T, Sprint, T-Mobile, and Verizon agreed to waive late fees and will not disconnect anyone due to missed payments. In addition, their WiFi hotspots will be opened to all. Everyone can also connect to xFinity WiFi hotspots and other broadband WiFi hotspots for free.
  • AT&T, Sprint, and T-Mobile (including Metro by T-Mobile) customers will get unlimited data for the next 60 days, even if that is not part of their plan. This should be automatic. They also promise an extra 20 GB of free hotspot data “soon”.
  • Mint Mobile is also offering free unlimited data. See site for details, you can manually purchase unlimited “add-on data” for free through April 12th.
  • Comcast is increasing the speed of their Internet Essentials package for free. In addition, new customers of their $10/month service will receive two months of free service.

Free Educational Materials

The trickier part is finding engaging non-screen activities. Our next project is to make homemade giant bubbles (with honey instead of having to find glycerine?).

Filed Under: Deals & Offers //

Ally Bank New Deposit Promo 2020: Up to $250 Cash Bonus

Posted on March 15, 2020 // 23 Comments

Ally Bank has a new cash deposit bonus that is offering a 1% cash bonus (up to $250) on new deposits on top of their existing interest rates. Valid for both new and existing customers. Given the holding period, this roughly equates to the same total interest paid as a 3-month bank CD at 5%+ APY. Here’s how it works:

  • Enroll by 3/20/20. You must enroll or you won’t get the bonus. Existing customers must enroll with the same e-mail as linked to their Ally bank account.
  • Fund account by 3/31/20. This means your account has to be approved, opened and funded by this date. Move at least $1,000 from another financial institution to a new or existing eligible Ally Bank account. Remember, transfers can take up to 3 business days.
  • Maintain funds through 6/30/20. Your funds need to remain in an eligible Ally Bank account through 6/30/20. Any withdrawals made during this time may reduce your bonus.
  • Get cash bonus on 7/30/20. Get a 1% cash bonus back on the money you moved, up to $250. That means $25,000 would max out this bonus.

Ally had a similar bonus in 2018, but with higher deposit limits. Note the following regarding which are eligible Ally accounts:

What accounts are eligible?
New or existing Ally Bank Online Savings Accounts, Money Market Accounts, and CDs are eligible for the cash bonus. If you have more than one of these accounts, we’ll consider all of them when calculating your bonus. Remember, the total maximum bonus you can receive is $250.

What accounts are not eligible?
Interest Checking accounts, Individual Retirement Accounts (IRAs), accounts owned by a trust, custodial accounts, Uniform Gift to Minors Act (UGMA) accounts, and Uniform Transfers to Minors Act (UTMA) accounts aren’t eligible for the cash bonus. New money you add to these accounts, or money you move from these accounts to your eligible accounts, won’t qualify for the bonus.

Rough math. The current rate on the Ally Online Savings account is 1.50% APY, and the 11-month No Penalty CD is 1.75% APY on $25k+ balances (as of 3/15/20). Given that you can an additional 1% bonus in 3 months, the bonus itself works out to the equivalent of a 4% annualized yield. 1.5% plus 4% = 5.5%, but given the recent market volatility, the savings rate may be cut down to 1% in the coming months. However, the No Penalty CD at 1.75% would be locked in. So you’re looking at the equivalent of a 3-month CD at roughly 5% – 5.75% APY for new money deposits between $1,000 and $25,000.

Should I move money out of Ally and back in to qualify? No, it won’t make any difference as Ally has already thought of that. All new funds added after 3/13/20 will count as new money for this promotion. They’ve already set the start date in the past, so you gain nothing by delaying your enrollment.

Existing customers. As a longtime Ally accountholder, I’m happy again to see that this offer includes existing customers, even if it has to be new money.

Bottom line. Ally Bank has a new promotion to attract new money (or bring back old money). You get a 1% cash bonus (up to $250) on new deposits on top of their existing interest rates. For their savings account, this works out to a 3-month holding period paying roughly 5% annualized interest. You must enroll soon by 3/20/20 and your account must be opened and fully funded by 3/31/20 at the very latest.

Filed Under: Banking, Deals & Offers //

Best Interest Rates on Cash – March 2020

Posted on March 4, 2020 // 9 Comments

The Federal Reserve just cut their target Fed Funds Rate by 0.50% in response to the market volatility brought on by the coronavirus. This will likely result in many rates drops this month for savings accounts and certificates across the board. (Lower rates may also make it a good time to refinance your mortgage with rates at all-time lows.)

Here’s my monthly roundup of the best interest rates on cash for March 2020, roughly sorted from shortest to longest maturities. I track these rates because I keep 12 months of expenses as a cash cushion and also invest in longer-term CDs (often at lesser-known credit unions) when they yield more than bonds. 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 3/4/2020.

High-yield savings accounts
While the huge megabanks make huge profits while paying you 0.01% APY, 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.

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 11-month No Penalty CD at 1.90% APY with a $500 minimum deposit. My eBanc has a 11-month No Penalty CD at 2.00% APY with a $100,000 minimum deposit. Ally Bank has a 11-month No Penalty CD at 1.90% APY with a $25,000 minimum deposit. CIT Bank has a 11-month No Penalty CD at 1.70% APY with a $1,000 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • Andrews FCU has a special 13-month certificate at 2.15% APY. Anyone can join this credit union via partner organization. Ally Bank has a special 13-month certificate at 2.10% APY. CIT Bank has a 12-month CD at 2.06% APY ($1,000 min).

Money market mutual funds + Ultra-short bond ETFs
If you like to keep cash in a brokerage account, beware that many brokers pay out very little interest on their default cash sweep funds (and keep the difference for themselves). The following money market and ultra-short bond funds are not FDIC-insured, but may be a good option if you have idle cash and cheap/free commissions.

  • Vanguard Prime Money Market Fund currently pays an 1.60% SEC yield. The default sweep option is the Vanguard Federal Money Market Fund which has an SEC yield of 1.49%. You can manually move the money over to Prime if you meet the $3,000 minimum investment.
  • Vanguard Ultra-Short-Term Bond Fund currently pays 1.89% SEC yield ($3,000 min) and 1.99% SEC Yield ($50,000 min). The average duration is ~1 year, so there is more interest rate risk.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 1.77% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 2.00% 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.

  • 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 3/3/2020, a 4-week T-Bill had the equivalent of 1.12% annualized interest and a 52-week T-Bill had the equivalent of 0.73% annualized interest.
  • The Goldman Sachs Access Treasury 0-1 Year ETF (GBIL) has a 1.46% SEC yield and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a 1.38% 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. There are annual purchase limits. If you redeem them within 5 years there is a penalty of the last 3 months of interest.

  • “I Bonds” bought between November 2019 and April 2020 will earn a 2.22% 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-April 2020, 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.

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 capped, and there are many fees that you must be careful to avoid (lest they eat up your interest). Some folks don’t mind the extra work and attention required, while others do. 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.

  • The only notable card left in this category is Mango Money at 6% APY on up to $2,500, but there are many hoops to jump through. 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, and if you make a mistake you won’t earn any interest for that month. Some folks don’t mind the extra work and attention required, while others do. Rates can also drop to near-zero quickly, leaving a “bait-and-switch” feeling. I don’t use any of these anymore.

  • Consumers Credit Union Free Rewards Checking (my review) has up to 5.09% APY on balances up to $10,000 if you make $500+ in ACH deposits, 12 debit card “signature” purchases, and spend $1,000 on their credit card each month. Elements Financial has 3% APY on balances up to $20,000 if you make 15 debit card “signature” purchases or other qualifying transactions per statement cycle. 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.

  • Hiway Federal Credit Union has a 5-year certificate at 2.61% APY ($25k minimum) and 2.50% APY with a $10,000 minimum. Early withdrawal penalty is 1 year of interest. Anyone can join this credit union via partner organization ($10 one-time fee).
  • Navy Federal Credit Union has a special 17-month CD at 2.25% APY ($50 minimum + add-on feature up to $75k), but you must have a military affiliation to join (includes being a relative of a veteran).
  • Andrews FCU still has their special 84-month certificate at 3.05% APY. They also have a 55-month at 2.60% APY. $1,000 minimum to open. Anyone can join this credit union via partner organization.
  • 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. The rates are not competitive right now. 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. I don’t see anything noteworthy. 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 a sad 0.10% rate). I view this as a huge early withdrawal penalty. You could also view it as a hedge against prolonged deflation, but only if you can hold on for 20 years. As of 3/3/2020, the 20-year Treasury Bond rate was 1.44%.

All rates were checked as of 3/4/2020.

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

Simple Bank Bonus: $400 Bonus + 1.75% APY for $20,000 New Deposit

Posted on March 3, 2020 // 19 Comments

Bonus back again 3/3/20. Simple is one of many fintech startups adding fancy tech and smartphone app sprinkles to your vanilla checking account. They were acquired by the big European-based bank BBVA in 2014. They just updated their $200 and $400 new customer bonuses with new expiration dates.

$200 Bonus Details ($10,000+)

  • Open a new Simple Account by 3/15/2020 at 4:59 PM PT.
  • Deposit(s) totaling $10,000 or more must post to the new account by 4:59PM PT within 15 calendar days after the account is opened.
  • Maintain a balance of at least $10,000 through 5/31/20 4:59 PM PT.
  • The combined balance between your Simple Account and Protected Goals Account counts towards this bonus. The Protected Goals account currently pays 1.75% APY while the primary checking only pays 0.01% APY, so I would recommend opening one of those as well. Note that balances in *Shared* Accounts and *Shared* Protected Goals Accounts do not toward this bonus.
  • Qualifying customers will receive the bonus credit into the eligible Simple account by 6/15/2020 at 4:59pm PT.

$400 Bonus Details ($20,000+)

  • Same as above, except you’ll need to deposit $20,000+ within 15 calendar days of opening, and you’ll get a bigger $400 bonus.

This works out to a 2% bonus after 60 days, which makes it roughly 12% APY annualized. The bonus is on top of the variable interest rate of their Protected Goals account, currently 1.75% APY (as of 3/3/20). That is a pretty good return on FDIC-insured cash in this current rate environment.

Note that this offer is for new accounts only. They’ve been running this on and off since July 2019 (thus the old comments below) so many of us are no longer eligible. Here is their full fee schedule.

Note that for some reason Simple limits ACH transfers to/from an external account to $5,000 cumulative during the first 30 days, when initiated on the Simple website. However, you can simply initiate a transfer from another bank (Ally Bank, Marcus, CIT, etc.) and there are no transfer limits.

Bottom line. Simple is offering a $200/$400 bonus on $10,000/$20,000 of new money into a new account. This works out to a very high APY for a 60 day holding period. Currently, there are also new deposit bonuses from CIT Bank and CIBC Bank. Compare with my most recent roundup of best interest rates.

Filed Under: Banking, Deals & Offers //

Orion FCU Premium Checking Review: 1% APY (Up to $10k) w/ New Activity Requirements

Posted on March 1, 2020 // 22 Comments

(Update April 2019. The interest rate on this account has dropped to 1% APY. In addition, instead of 8 debit transactions per month, you must now spend at least $500 on your Orion debit or credit card each month. All signature and PIN based purchases count. They seem to have given up the idea of being a top rate. I have not updated the review below yet.)

Orion Federal Credit Union (FCU) has a Premium Checking account that offers 1% APY on balances up to $10,000 if you meet certain direct deposit and debit card transaction requirements. However, if you don’t meet the requirements, you’ll get basically no interest and be charged a monthly fee. Their membership is now open nationally. Details below.

Membership eligibility. Orion FCU is based in Memphis, Tennessee and has a field of membership open to nearby residents and employers of local companies. However, you can also join as a “volunteer” for one of their affiliated nonprofit organizations:

Volunteers for Orion Gives Back organizations are eligible for membership in Orion. You can qualify as a volunteer fundraiser simply by choosing an organization and asking us to make a $10 donation.

Yes, you read that right – they will even make the donation for you! Choose from Habitat for Humanity Greater Memphis, Hope House, Porter-Leath, Ronald McDonald House, and Wolf River Conservancy.

You will need your Social Security number and Driver’s License number. In addition, reader Bill reports that they will perform both a ChexSystems inquiry and a hard credit check through Equifax.

Premium Checking requirements. To qualify for the 3% APY on balances up to $15,000 and up to $10 in ATM fee rebates per month, you must have the following:

  • Electronic deposits totaling at least $500 per month. Electronic deposits include: direct deposit, mobile deposit, and electronic transfers from another financial institution.
  • Spend at least $500 on your Orion debit or credit card per month. All signature and PIN based purchases will count toward the $500 minimum.

Note that amounts in excess of $25,000 but under $100,000 will earn 2.01%. If you meet these requirements, there is no monthly fee. If you don’t, then there is a $5 monthly fee and your rate goes down to 0.05% APY.

It is nice that the deposit requirement is not restricted to “payroll direct deposits”. You can set up an automated monthly transfer from another bank account.

Worth it? Like many other such “rewards checking” accounts, you have to be ready for continuous changes. These financial institutions are constantly tinkering to see how they can get you to make this your main checking account, but not lose too much money on the perks.

Previously, you just had to make any 8 debit-card purchases per month. You might just make a bunch of $2 purchases at the convenience store. Some people who were making many small purchases will balk at the new $500 total requirement, but others might like the simplicity of the new terms.

Let’s make some rough calculations. An online savings account earning 2% would earn $300 of interest on a $15,000 balance. At 3% APY, you would earn $450 instead. That’s a difference of $150 per year in extra interest ($12.50 per month). Missing out on 2% cash back on credit card purchases of $500 per month works out to $10 per month. But the bank interest is taxable, while the credit card rewards are not. If you keep significantly less than $15,000, you might even come out behind with Orion.

Note: Some grocery stores allow you to get up to $200 cash back when making a purchase with a debit card with a PIN. However, this would depend on your cash needs as you’d still be missing out on credit card rewards if you are spending cash instead. You could technically deposit this cash back into a bank somewhere, but that also takes time and effort.

Bottom line. Orion FCU has a Premium Rewards checking account available to anyone nationwide that pays 3% APY on balances up to $15,000 if you meet certain direct deposit and debit/credit card transaction requirements. However, if you don’t meet those requirements, you will earn virtually no interest and be subject to a $5 monthly fee. The latest change replaces the 8 debit card transactions with a least $500 in monthly spending on an Orion debit/credit card.

Filed Under: Banking, Deals & Offers //

Coronavirus + Mortgage Rates at 8-Year Lows = Refinance Boom

Posted on February 27, 2020 // 17 Comments

Update March 2020: 30-year fixed rates on 3/4 were at 3.0%-3.25%. If you’re looking for some good news to distract you right now, check out refinancing your mortgage. In November 2018, the average 30-year mortgage rate was nearly 5%. Right now, you can find 30-year rates at around 3.25% and lower with zero points. Mortgage rates are at all-time lows again, with the previous lows back in 2016 and 2012 (source):

At these lower rates, millions more homeowners can save money by refinancing rates, even after taking into account the loan fees (source). This is based on industry data on the rates of existing mortgages.

If you are refinancing, try to see if you can lower your rate, how much your lower monthly payment will be, and how long it will take to break even with the refinancing costs. Here is an example scenario from the WSJ:

WHEN IT IS WORTH REFINANCING
– Home buyer puts 20% down on a home worth $266,300, the median home price in January.
– No plans to move soon.
– Pays a 4% rate, resulting in a monthly payment excluding taxes, fees and insurance of $1,017.09, according to LendingTree.
– Dropping to a 3.25% rate would decrease the payment from $1,017.09 to $927.16. The homeowner would save around $90 a month, with exclusions.
– Assuming refinancing costs of $2,000, this homeowner would need to stay in the home for a little less than two years to make it worth the money.

If you are willing to take a slightly higher rate (negative points), you can even get a “no cost” refinance where the negative points cover your refinance costs. This way, your monthly costs go down with no upfront cost at all.

Bottom line. Due to coronavirus fears, interest rates are now at or nearing all-time lows. This also means that millions more homeowners may be able to lower their mortgage rate via a refinance. If you are serious, get an accurate full quote with all the costs involved with a reputable comparison site like LendingTree (tip: they will likely call whatever phone number you choose to enter) or go local and call up your neighborhood broker. If you are just curious, try an “instant quote” that doesn’t require any upfront information. If you do like what you see, lock in the rate as they can pop back up quickly.

Filed Under: Deals & Offers, Real Estate //

Fort Bragg Federal Credit Union Certificate Deal: 5-year at 2.99% APY

Posted on February 19, 2020 // 2 Comments

Fort Bragg Federal Credit Union has some solid rates on their term share certificates, most notably the 5-year jumbo certificate at 2.99% APY ($25,000 minimum) and 2.89% APY ($5,000 minimum). Available both in regular taxable and IRAs. These are even “step-up” CDs where you can bump up the rate once if the advertised rates rise. NCUA-insured. Found via DepositAccounts.

This is a relatively small credit union, so this rate probably won’t last very long. I would also expect it to require a little effort to be opened if you don’t live near their branches in North Carolina. Even their 2.99% APY is a bit odd. When it’s a loan where you pay interest, you always see APRs of 2.99% or 9.99%. When it’s a bank account where you get paid interest, you always see APYs of 2.00% or 2.05%. It’s almost like they don’t want people to notice that they have the highest 5-year CD rate in the country by a decent margin.

Membership eligibility. Credit union membership is open to:

  • Active-Duty or Retired military service member
  • Family member of primary member
  • Regularly works on Fort Bragg
  • Most persons who live, work, worship, or attend school in, and businesses and other legal entities in Cumberland County, NC
  • Members of the Braxton Bragg Chapter of AUSA

The last option makes membership open to anyone nationwide. Here is the PDF application which shows the cost of $40 for a 2-year membership, but you may wish to try and apply over the phone at 855-246-6269. Be sure to join the Braxton Bragg Chapter. You will need your AUSA membership number before they can finish your credit union application.

Many credit unions do a hard credit pull upon joining, but I’m not sure about Fort Bragg.

Early withdrawal penalties and limitations. Please note the following language taken from the Full membership agreement (PDF). The penalty is short (3 months), but there may be restrictions for early withdrawals.

Early Withdrawal Penalties – All Term Share Certificate Accounts. You have agreed to leave the principal of this account on deposit for the full term stated in your Certificate. If all or part of the principal is withdrawn before the maturity date, the Credit Union may charge you a penalty. Withdrawal of the principal amount of your Certificate may be made only with the consent of the Credit Union. Unless stated otherwise, owners of non-IRA Term Share Certificate accounts shall forfeit an amount equal to three (3) months dividends on the amount withdrawn. Owners of IRA Term Share Certificate accounts shall forfeit an amount equal to three (3) months AND assessed an Administrative Fee, refer to Term Share/IRA Certificates Rates for current fee. The penalty may be calculated at the rate paid on the deposit at the time of the withdrawal. The penalty will, if necessary, be taken from the principal amount of the deposit.

Bottom line. Fort Bragg FCU has a 5-year share certificate at 2.99% APY. As of 2/19/2019, a 5-year Treasury bond currently yields only about 1.4%. The SEC yield of the Vanguard Total Bond Market ETF (BND) is only 2.14% and it has a longer duration. This margin means this rate won’t last very long. The possible credit check and $40 entry fee make it better for high balances to make it worth the trouble.

I am skipping this one as I don’t have any CDs maturing soon. Still, this is another example of smaller credit unions offering up a very high rate for a limited-time. Such opportunities only available to motivated individual investors and not big institutions.

Filed Under: Banking, Deals & Offers //

Reminder: File a Claim For Yahoo Data Breach Class Action Settlement

Posted on February 11, 2020 // 6 Comments

I thought I’d mentioned this already, but apparently not. If you had a Yahoo account (including Yahoo Fantasy Sports, Yahoo Finance, Tumblr, or Flickr) between January 1, 2012, and December 31, 2016, you are a member of the Yahoo! Inc. Customer Data Security Breach Litigation Settlement. This was the biggest hack in history at the time, but there have been so many since you’ve probably forgotten about it like myself. The claim form deadline is July 20th, 2020.

You can make a claim for either 2 years or credit monitoring OR you can opt for a cash payment if you already have credit monitoring or identity protection services. I am up to my ears in free credit monitoring, so I am filing for the cash payment – might be $100, might be less, might be up to $358 supposedly. (I’m keeping my expectations low.) If you suffered fraud or identity theft, you can also claim reimbursement for up to $25,000 in out-of-pocket expenses (documentation required).

I don’t get too excited about these settlements, but if I am eligible then I will take a minute and fill out a claim… and promptly forget about the whole thing. A year or more later, a check will show up in my mailbox. Some are much bigger than expected, some are much smaller, but the checks eventually do add up.

Filed Under: Deals & Offers //

Keep Hawaiian Miles From Expiring By Taking A Single Survey (Opinions Take Flight)

Posted on February 9, 2020 // 1 Comment

otf0

Opinions Take Flight is a consumer survey panel that pays out Hawaiian Airlines Miles instead of cash. New members get 350 HawaiianMiles for joining and completing the first survey. I usually find these survey panels too tedious to participate in regularly, but I do at least one survey with them a year (per account) to keep my Hawaiian miles from expiring. Hawaiian miles otherwise expire after 18 months of inactivity.

You’ll need to verify your e-mail, fill out some profile information, and then they will ask you survey qualification questions. The good news is that even if you don’t qualify for a particular survey (which happens a lot), OpinionsTakeFlight.com will still give you 5 miles for trying.

otf1

Since my primary goal is to score any amount of quick miles to reset my miles expiration, I was happy with that. I’d rather get 5 miles (and expiration extension) for 5 minutes of work rather than 350 miles (and expiration extension) for 24 minutes of work anyway. Here is a screenshot of my account that shows my OTF miles keeping my Hawaiian miles active for the past two years:

Note the delay between “Activity date” and “Miles posted date” varied between 3 days and over 2 weeks. I recommend trying a survey every 11.5 months or so, as I don’t want them to close my account down due to inactivity if I don’t do any surveys in a 1-year period.

Bottom line. If you need a free and easy way to keep Hawaiian Airlines miles from expiring, sign up for Opinions Take Flight and try to take a survey at least once a year (I think they might mark your account inactive otherwise). You’ll get a least 5 miles, which will reset your 18-month expiration countdown.

Filed Under: Deals & Offers //

Best Interest Rates on Cash – February 2020

Posted on February 4, 2020 // 13 Comments

Here’s my monthly roundup of the best interest rates on cash for February 2020, roughly sorted from shortest to longest maturities. I track these rates because I keep 12 months of expenses as a cash cushion and also invest in longer-term CDs (often at lesser-known credit unions) when they yield more than bonds. 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 2/4/2020.

High-yield savings accounts
While the huge megabanks make huge profits while paying you 0.01% APY, 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.

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 11-month No Penalty CD at 2.00% APY with a $500 minimum deposit. My eBanc has a 11-month No Penalty CD at 2.00% APY with a $100,000 minimum deposit. Ally Bank has a 11-month No Penalty CD at 1.90% APY with a $25,000 minimum deposit. CIT Bank has a 11-month No Penalty CD at 1.75% APY with a $1,000 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • Marcus (GS Bank) has a 12-month CD at 2.15% APY ($500 minimum).

Money market mutual funds + Ultra-short bond ETFs
If you like to keep cash in a brokerage account, beware that many brokers pay out very little interest on their default cash sweep funds (and keep the difference for themselves). The following money market and ultra-short bond funds are not FDIC-insured, but may be a good option if you have idle cash and cheap/free commissions.

  • Vanguard Prime Money Market Fund currently pays an 1.64% SEC yield. The default sweep option is the Vanguard Federal Money Market Fund which has an SEC yield of 1.51%. You can manually move the money over to Prime if you meet the $3,000 minimum investment.
  • Vanguard Ultra-Short-Term Bond Fund currently pays 1.93% SEC yield ($3,000 min) and 2.03% SEC Yield ($50,000 min). The average duration is ~1 year, so there is more interest rate risk.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 1.86% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 2.14% 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.

  • 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 2/3/2020, a 4-week T-Bill had the equivalent of 1.56% annualized interest and a 52-week T-Bill had the equivalent of 1.46% annualized interest.
  • The Goldman Sachs Access Treasury 0-1 Year ETF (GBIL) has a 1.83% SEC yield and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a 1.37% 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. There are annual purchase limits. If you redeem them within 5 years there is a penalty of the last 3 months of interest.

  • “I Bonds” bought between November 2019 and April 2020 will earn a 2.22% 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-April 2020, 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.

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 capped, and there are many fees that you must be careful to avoid (lest they eat up your interest). Some folks don’t mind the extra work and attention required, while others do. 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.

  • The only notable card left in this category is Mango Money at 6% APY on up to $2,500, but there are many hoops to jump through. 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, and if you make a mistake you won’t earn any interest for that month. Some folks don’t mind the extra work and attention required, while others do. Rates can also drop to near-zero quickly, leaving a “bait-and-switch” feeling. I don’t use any of these anymore.

  • Consumers Credit Union Free Rewards Checking (my review) has up to 5.09% APY on balances up to $10,000 if you make $500+ in ACH deposits, 12 debit card “signature” purchases, and spend $1,000 on their credit card each month. Elements Financial has 3% APY on balances up to $20,000 if you make 15 debit card “signature” purchases or other qualifying transactions per statement cycle. Find a locally-restricted rewards checking account at DepositAccounts.
  • If you’re looking for a high-interest checking account without debit card transaction requirements, the rate won’t be nearly as high, but take a look at MemoryBank at 0.90% APY.

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.

  • Hiway Federal Credit Union has a 5-year certificate at 2.71% APY ($25k minimum) and 2.61% APY with a $10,000 minimum. Early withdrawal penalty is 1 year of interest. Anyone can join this credit union via partner organization ($10 one-time fee).
  • Navy Federal Credit Union has a special 17-month CD at 2.25% APY ($50 minimum + add-on feature up to $75k), but you must have a military affiliation to join (includes being a relative of a veteran).
  • Andrews FCU still has their special 84-month certificate at 3.05% APY. Anyone can join this credit union via partner organization.
  • 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. The rates are not competitive right now. 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. I don’t see anything noteworthy. 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 a sad 0.10% rate). I view this as a huge early withdrawal penalty. You could also view it as a hedge against prolonged deflation, but only if you can hold on for 20 years. As of 2/3/2020, the 20-year Treasury Bond rate was 1.84%.

All rates were checked as of 2/4/2020.

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

Sam’s Club: Buy 1 Year Membership for $45, Get $45 Cash Back Credit

Posted on January 29, 2020 // 3 Comments

Sam’s Club has a special membership offer where if you first register your e-mail at this promotional website and then pay $45 for a new 1-year membership, you will get $45 off $45 or more of qualifying purchases at Sam’s Club within the first 60 days. Offer expires March 8th, 2020.

The $45 off $45 offer is not valid on items purchased with individual Instant Savings offers (i.e. stuff that is already on sale). Also excluded are alcoholic beverages, tobacco, milk, fuel, pharmacy, gift cards, memberships or shipping costs. Note that you must also agree to sign up for annual auto-renewal, so you will need to set a reminder to cancel that manually later on if you don’t want that.

*Join now as a new Club member for $45 (plus tax in some places) and receive an offer for $45 off $45 or more of qualifying purchases within the first 60 days. […] Primary memberships are valid for one year from date of issue. By accepting this offer, you authorize annual recurring charges to any card on file for your Sam’s Club membership fee(s) plus any applicable taxes at then-current rate every year until you cancel. Current rates, which may change, are $45 for Club level and $100 for Plus level. Visit samsclub.com or a club or call 1-888-746-7726 to see full terms or cancel autorenewal.

This ends up being similar to those Groupon offers where you buy a membership and get some coupons, but at least here you get $45 of credit towards a much wider selections of Sam’s Club merchandise to hopefully effectively get close to a free membership.

Filed Under: Deals & Offers //

Credit Karma Tax Review: $0 Federal, $0 State Tax Filing w/ No Last-Minute Charges

Posted on January 29, 2020 // 10 Comments

cktax0Tax season is officially here as the IRS has started accepting E-files. For you early birds, Credit Karma Tax is now on its 4th year of offering 100% free Federal AND State tax preparation software with free e-File and no income restrictions. You can have itemized deductions, business income, self-employment tax, and/or capital gains and losses. They now also have a Max Refund Guarantee and Audit Defense if you get audited.

My favorite feature of this product is that there is no “upgrade” version, so there are no upsells and no last-minute fees. Your bill will always be $0 Federal, $0 State. I hate the feeling when you have spent hours (days?!) typing in all that data and you expect a certain price, but at the very end they charge you more. You are just too tired to do it all over again, so you accept, but it leaves a bad aftertaste.

cktax1

Is this legit? What’s the catch? Yes, they are legit. Credit Karma purchased AFJC Corporation, which was a private-label software provider and previously supplied the online tax software for Jackson Hewitt. They’ve been running this offer since 2016.

The “catch” is that you must also sign up for the main CreditKarma.com site, which takes your personal information and provides you access to your credit scores and reports from two of the three major consumer credit bureaus. They make money by also using that personal information to show you customized advertisements for things like credit cards, auto/home lending, and insurance products.

What’s included?

  • Free Federal filing with free e-File for 90%+ of filers with no income restrictions.
  • Free State filing with free e-File for 40 states + Washington DC. (Not all states require you to file state income taxes.)
  • Max Refund Guarantee
  • Free Audit Defense
  • Option to print and snail mail if you choose not to e-File.

Here are some popular forms included by Credit Karma Tax that other “Free” options often don’t cover:

  • Schedule C – Profit or Loss from Business (Sole Proprietorship)
  • Schedule D – Capital Gains and Losses (Stock Sales)
  • Schedule E – Supplemental Income and Loss (Rental property)
  • Schedule SE – Self-employment tax

What’s NOT included? Credit Karma will NOT support the following this year:

  • Multiple state filings
  • Part-year state filing
  • Foreign earned income
  • State returns for married filing separately in community property states*
  • State filing without a federal filing

While Credit Karma Tax supports Sole Proprietorships and income reported on Schedule C/E/SE, they do NOT yet support business tax returns for an S corporation, C corporation, partnership or multi-member LLC.

Tell me more about how Credit Karma makes money. Quoted from their site:

When you visit Credit Karma, we show you offers and recommendations (like credit cards or loans) that could save you money. If you take one of these offers, the bank or lender usually pays us. We never charge you a dime. And we never sell your info to marketers.

For example, if they know you have a 4% rate mortgage, they could sell you a 3.5% refinance mortgage. If they know you are older and have a paid-off home (i.e. you pay property taxes but no claim no mortgage interest), they could sell you a reverse mortgage. If they know your income, they can estimate the amount of life insurance you need. You could actually like this customization, be creeped out completely, or simply plan to ignore the ads.

Try before you commit. Nearly all online tax prep software only bills you when you are ready to file. If you’re not sold on a single product, why not sign up and fill out this and a competitor side-by-side in two different browser tabs. It’s a bit more work, but not a lot if you’re doing it simultaneously. That way, you can double-check the calculations. Ideally, you should get the same refund/due amount for both and then you can be confident that you are maximizing your filing (and still file for free).

Bottom line. Credit Karma Tax will give you free Federal and State tax returns. There is no other version, so you will never be hit with a last-minute upcharge. In exchange, you let them show you ads based on your financial data. In terms of technical accuracy, I expect that they are roughly equal to the other major providers. However, you may value the convenience factors offered by competitors (easily import last year’s data, better and/or unlimited phone support, automatic import of 1099-B tax lot data). I like the idea of using two side-by-side.

Filed Under: Deals & Offers, Taxes //
« Previous Page
Next Page »