Do you think you’re telling yourself the truth about money? We may think we know the facts about our finances. But our beliefs can often overshadow the facts.
Our wishes, hopes and fears can tip the scales away from the truth. This makes it easier for us to believe what we want to about money — and it can happen without us even realizing it.
The “money lies” we tell ourselves can change the way we think and act when it comes to finances. And since most of us rarely talk about money with our friends and family, the money lies we tell ourselves stick around. That can lock us into destructive beliefs and reinforce poor financial habits.
But no matter what money lies we tell ourselves, it’s never too late to set the record straight. Let’s look at some of the most common money lies we all buy into at some point — and the truth behind them.
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1. I’ll be happier when I have $_____.
“With $___ in the bank (whatever amount you think is ideal), many of my problems would go away, and I’d be happier.”
Does this sound familiar?
Goals and target numbers for earnings, savings and budgets are great. But if you make the mistake of thinking some magic number will flip a happiness switch for you, think again.
When we tell ourselves this money lie, we put too much emotion into a single number. And we may be setting ourselves up for disappointment — both if we never get $__, and if we do get $__ and realize it doesn’t make us as happy as we thought it should.
The good news? Studies show that making progress toward our goals can be incredibly satisfying, regardless of whether we hit the target.
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2. I deserve it, regardless of whether I can afford it.
“I work hard, and I don’t treat myself often.”
“I could kick the bucket tomorrow (YOLO).”
“I’m getting a great deal!”
These are just some of the rationalizations we use to convince ourselves that it’s OK to buy something.
Whatever legs this money lie stands on, it’s usually used to soothe the sting of expensive purchases — those that aren’t really essential — and perhaps items we know, deep down, we don’t really need.
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3. I have strong financial willpower.
When faced with temptation, most of us lie to ourselves that we’re great at resisting it. But, when was the last time you chose not to buy something you really wanted? When was the last time you made an impulse buy?
The average American spends at least a couple of hundred dollars a month on impulse purchases.
And we’re more likely to buy on impulse and spend more when we’re stressed. That’s probably why impulse spending shot up about 18% in 2020.
Plus, those of us who are shopping with credit cards are probably spending more on the regular basis than we realize. The average credit card shopper spends about 10% more with their cards than they would with cash. And that’s not even counting the cost of interest if the balance isn’t paid in full.
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4. I’ll save more later.
Most folks focus on buying what we need and want now, and we tell ourselves we’ll start saving for the future later. If we save anything at all, it’s likely to be whatever we have left over. In fact, fewer than 1 in 6 of us are saving more than 15% of our income, and 1 in 5 aren’t saving any money.
No matter the reason, when we tell ourselves this money lie and put off saving, we’re prioritizing the present over the future.
That can catch up with us on a “rainy day” or whenever we do start thinking seriously about retiring. By that time, there can be a lot of heavy lifting to play “catch up” with our savings — or it may even be too late.
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5. I have plenty of time to plan for my financial future (& I don’t need to think about it yet).
The future can seem really far away when we’re looking 10, 20 or even more years out. When we feel like we have a lot of room between now and then, it’s easy to make excuses to not plan or save for it.
This money lie is an excuse for procrastination. It’s the rationale we use when we have a hard time managing our negative feelings or uncertainties about our financial futures. And it makes us turn a blind eye to the years of interest that we lose out on when we don’t plan.
Benjamin Franklin may have spoken best about the truth behind this money lie when he wisely said, “by failing to prepare, you are preparing to fail.”
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6. There is good and bad debt.
We tend to assign moral value to debt, thinking of mortgages and student loans as “good” debt, and considering credit card debt as “bad.”
This money lie gets us to think the wrong way about debt. All debt comes with some cost, and it’s critical to understand how every loan affects our current and future selves.
Instead of focusing on whether debt is “good” or “bad,” concentrate on the total cost of the interest over time (it’s often higher than you think) and on deciding whether the loan is really helping you achieve your goals.
About half of us seem to already be on track with that thinking, saying that we expect to be out of debt within one to five years.
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7. Wanting more is bad.
While I think we can all agree that obsessive greed is wrong, it’s not a bad thing to want more for you and your loved ones.
When we tell ourselves we shouldn’t want more than we have, we agree to settle for less. And we may be tricking ourselves into thinking it’s OK that we’re not doing something (or enough) to improve our financial situation.
This money lie holds us back and can make it hard to improve our financial behaviors.
When we frame wanting more as a positive motivator, it can be easier to take the chances or do the work needed to get to that next financial level we may want.
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How to Stop Losing Out to Costly Money Lies
How many of these money lies sound like something you’ve told yourself?
At some point, I think we’ve all tricked ourselves with at least one of them. Maybe we were rationalizing a decision, or we were trying to make ourselves feel better about what we wanted to do with our money. And we probably didn’t make the best financial choices as a result.
Here’s the truth: Honesty goes a long way with finances.
What we tell ourselves and what we believe about money influences our financial behaviors. If we’re not telling ourselves the truth, our money lies won’t just drain our wallets. They can affect our financial awareness and inflate our confidence. And they get in the way of maintaining or growing wealth.
When we recognize the money lies that we believe, we can reset our thinking, change our mindset and start taking action. And that sets us up to make better choices and make more progress toward our big financial goals.
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This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
Investment advisory services offered through Virtue Capital Management, LLC (VCM), a registered investment advisor. VCM and Reviresco Wealth Advisory are independent of each other. For a complete description of investment risks, fees and services, review the Virtue Capital Management firm brochure (ADV Part 2A) which is available from Reviresco Wealth Advisory or by contacting Virtue Capital Management.
This article was written by and presents the views of our contributing adviser, not the Kiplinger editorial staff. You can check adviser records with the SEC or with FINRA.
Founder & CEO, Reviresco Wealth Advisory
Ian Maxwell is an independent fee-based fiduciary financial adviser and founder and CEO of Reviresco Wealth Advisory. He is passionate about improving quality of life for clients and developing innovative solutions that help people reconsider how to best achieve their financial goals. Maxwell is a graduate of Williams College, a former Officer in the USMC and holds his Series 6, Series 63, Series 65, and CA Life Insurance licenses.Investment Advisory Services offered through Retirement Wealth Advisors, (RWA) a Registered Investment Advisor. Reviresco Wealth Advisory and RWA are not affiliated. Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. Past performance does not guarantee future results. Consult your financial professional before making any investment decision.
When you deposit money into your bank account, those funds are not always immediately available for use. Your bank or credit union may place a hold on the deposit, and you may notice that your “available” balance is lower than the total balance of your account.
Each bank has its own policy about how long deposits take to become available. There are also federal regulations about how long banks can hold on to funds before making them available to their customers.
It can be a good idea to understand your bank’s policies on holding deposits in order to make sure you don’t accidentally overdraw your account.
Below are some key things you may want to keep in mind to make sure you have access to cash when you need it.
Why Do Banks Put a Hold on Deposits?
Banks hold deposits to protect themselves, as well as their customers, from losing money. If a check you deposit bounces or some other complication arises, the bank will have an opportunity to fix the problem before you have the opportunity to spend the funds.
While a delay in being able to access your own money may seem like a nuisance, holds can actually help protect you from fraud and fees.
If your bank allows you to spend funds from a check that later bounces, you would have to repay the bank the amount that they gave you, and likely also get hit with a hefty overdraft fee. This is the case regardless of who is at fault.
How Long Can a Bank Hold a Deposit?
The amount of time it takes for funds to become available can depend on a number of factors, including how long you’ve held your account, your financial history, the type of deposit (e.g., cash, check, direct deposit), and the amount of the deposit.
Generally, a bank or credit union has until at least the next business day (a business day is a weekday that is not a holiday) to make most deposits available.
Electronic deposits are typically available on the same day. So, one way to make sure your paycheck is available to you quickly is to sign up for direct deposit.
The longest a bank can hold funds is usually five business days for money deposited at an ATM of a different bank. While each bank or credit union has its own rules as to when it will let you access the money you deposit, federal law establishes the maximum length of time a bank or credit union can make you wait.
Recommended: How Long Does a Direct Deposit Take?
Below are the rules set by the Federal Reserve .
• Direct Deposit: Day of Deposit
• Wire Transfer: Next Business Day
• First $200 of any non-”next-day” check deposited: Next Business Day
• Cash*: Next Business Day
• U.S. Treasury Check: Next Business Day
• U.S. Postal Service Money Order*: Next Business Day
• State or Local Government Check*: Next Business Day
• Casher’s, Certified, or Teller’s Check*: Next Business Day
• Checks and Money Orders Drawn on Another Account at the Same Financial Institution: Next Business Day
• Federal Reserve Bank and Federal Home Loan Bank Checks*: Next Business Day
• Any Other Checks or Non-U.S. Postal Service Money Orders: Second Business Day After the Day of Deposit
• Deposits of Items Noted by “*” at an ATM Owned by the Customer’s Financial Institutions: Second Business Day After the Day of Deposit
• Deposits Made at an ATM Not Owned by the Customer’s Financial Institution: Fifth Business Day After the Day of Deposit
* Deposited in person
You may want to keep in mind that the hold times listed above are the maximum allowed. It’s possible that your funds will be available sooner.
You can typically find specifics about your bank’s funds availability policy in the account agreement you received when you opened your account, or you can ask the bank for a copy of their holding policies.
Understanding Cut-Off Times
When you deposit a check, you may think you did it “today.” However, you may have missed the cut-off for starting the deposit process on that calendar day.
If you make a deposit after the cut-off time, your financial institution can treat your deposit as if it was made on the next business day. If the deposit was made late in the day on a Friday, it could actually take three or more days for the money to show up in your account.
By law, a bank or credit union’s cut-off time for receiving deposits can be no earlier than 2:00 p.m. at physical locations and no earlier than noon at an ATM or elsewhere. Sometimes banks have later deposit times for mobile deposits (made via the bank’s phone app), such as 5 pm.
Deposits That May Take Longer to Become Available
There are certain circumstances under which banks are allowed to hold deposited funds for longer than the times listed above.
When these exceptions apply, there isn’t always a clearly defined limit to the amount of time the bank can hold funds. The bank can generally hold funds for a “reasonable” amount of time.
Exceptions to standard holding times include:
If a customer deposits more than $5,000, the bank will typically need to make the first $5,000 of the funds available within one business day, but they are allowed to put a longer hold on the remaining amount.
If a check bounces and then is redeposited, banks may hold the funds for longer than one business day. (You may want to be cautious about accepting future checks from a person or business that has already bounced a check.)
Accounts That Have Been Repeatedly Overdrawn
If a customer has a history of overdrawing their account, the bank may hold funds for more time before making them available for use.
Repeatedly overdrawn means that the account has had a negative balance on at least six business days within the past six months, or the account was $5,000 overdrawn more than twice within the past six months.
If a customer deposits a check that seems suspicious, the bank may hold funds for a longer period of time. A check may seem suspicious if it’s postdated or it’s more than 60 days old.
New Bank Accounts
If your account is less than 30 days old, you may experience hold times of up to nine days. Official checks and electronic payments, however, may be partially available the next day.
If there is a communications outage, a natural disaster, or another circumstance that impedes normal bank functions, banks can hold funds until they are able to provide the funds.
When you deposit a check, you naturally expect the money to show up in your bank account. But there may be a delay between the time you deposit money and the time that those funds are actually available for you to spend.
Banks generally make funds available on the business day after you make a deposit, but there are exceptions.
Direct deposits are typically available sooner, and some checks, such as those larger than $5,000 or older than 60 days, can take longer than a day to clear. If your account is brand new, it may take up to nine days for a deposited check to become available.
Knowing your financial institution’s policies about holding times can help ensure that you’re able to pay your bills on time, have access to cash when you need it, and don’t get hit with overdraft fees.
Looking for Something Different?
If you’re looking for an easy way to access and manage your money, you may want to consider signing up for SoFi Money®.
SoFi Money is a mobile-first cash management account that allows you to earn competitive interest, spend, and save–all in one place. And, it’s simple to add your SoFI Money account as an option for your direct deposit.
Sign up for SoFi Money, then set up direct deposit into your new cash management account.
Photo credit: iStock/solidcolours
SoFi Money® SoFi Money is a cash management account, which is a brokerage product, offered by SoFi Securities LLC, member FINRA / SIPC . Neither SoFi nor its affiliates is a bank. SoFi Money Debit Card issued by The Bancorp Bank. SoFi has partnered with Allpoint to provide consumers with ATM access at any of the 55,000+ ATMs within the Allpoint network. Consumers will not be charged a fee when using an in-network ATM, however, third party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time. Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances. External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement. SOMN20038
Is your monthly car payment a burden to your budget? Paying off your car loan early can earn you much-needed financial freedom and save you potentially hundreds (or thousands) of dollars in would-be interest.
You can pay off your car loan early using several effective strategies, but before you do, consider any potential penalties and effects to your credit score.
The True Cost of a Car Loan
It’s no secret that cars are our worst big-ticket investment. Unlike houses, which typically increase in value over time, and education, which theoretically opens the door to higher earning potential, cars lose their value over time. In fact, a new car depreciates in value as soon as you drive it off the lot and will lose 20% to 30% of its value in the first year.
That’s a big deal, especially given the average cost Americans are spending on new cars in 2021. According to KBB, that hard-to-swallow number is over $40,000, up more than 4% over 2020.
That means Americans are shelling out $40,000 for a car that, in a year, will be worth anywhere from $28,000 to $32,000, representing an $8,000 to $12,000 loss.
But there’s more than just the sticker price to consider. In addition to sales tax (average of 10.12% in 2020, though it varies by state), be prepared to pay interest on your car loan. Right now, the average car loan interest rate (also referred to as APR, the annual percentage rate, though there’s a difference) is over 4%.
APR includes the interest rate, in addition to other fees, like loan origination fees or mortgage insurance. You should use the APR, not the flat interest rate, when calculating what you’re paying.
Your APR will depend on the current market and your credit score. The better your credit score, the lower your APR. If you have a weak credit score and can put off buying a car, it is advisable to build up your credit score before applying for a loan.
For 2021, rates are expected to hover between 4% and 5% for 48-month (four-year) and 60-month (five-year) loans.
Car Loan Calculator: An Example
Interest on a car loan adds up. Let’s take the $40,000 new car as an example, with a $995 dealer fee. Assume you put $2,000 down and have a tax rate of a clean 10% and an APR of 5%. You’ve agreed to pay off the loan over 60 months, or five years. (The typical car loan is anywhere from three to seven years; the shorter the loan period, the higher the monthly payment.)
In this scenario, the total cost of the vehicle after tax and dealer fees is $44,995, minus your $2,000 down payment. That leaves $42,995 to be financed. Given the 5% interest rate over 60 months, your monthly payment would be $811.37.
Over 60 months, you will end up having paid $50,682.20 (including down payment) for a car that, with taxes and dealer fees, cost just $44,995. That means, over five years, you’ve paid $5,687.20 in interest.
And let’s just ignore the fact that, due to depreciation, that car that you’ve just paid $50,000+ on is now worth just $18,752.41 (average value of 37% of original cost after five years).
Use The Penny Hoarder’s car loan calculator to figure out how much you’ll pay with real-life numbers that match your scenario.
How Car Loan Interest Rates Work
Paying off your car loan early, if you can afford it, seems like a no-brainer then. However, before you start strategizing about how to pay off your car loan ahead of schedule, do some digging to determine what kind of car loan you have.
In an ideal world, your loan will be a simple interest loan. If you have not yet purchased your car, only consider lenders that will offer you a simple interest loan. This means the interest is calculated entirely on the principal balance of the loan.
But if your lender charges precomputed interest, that means they will calculate how much you will pay in interest over the life of the loan and include that in your total balance. That means, even if you pay off your car early, the payoff quote will include all the interest you would have paid had you kept the loan open. In this case, there are absolutely no financial savings in paying your car loan off early.
One other element of your loan to research is payoff penalties. Payoff penalties are legal in 36 states and allow lenders to charge you a penalty (usually a fixed percentage of the remaining balance) for paying off your car loan early. In this case, it may be more expensive than what you would have paid in interest over the life of the car loan.
Will Paying Off Your Car Loan Early Hurt Your Credit Score
It is not likely that paying off a car loan early will hurt your credit score, but it could be keeping you from growing your credit score. Regular, on-time payments account for roughly 35% of your FICO credit score, making it the most important factor. Making monthly payments on a car loan is a great way to show lenders you are responsible with repaying your debts.
In addition, lenders like to see a nice mix of credit (mortgage, car loan and credit cards are the big three). Keeping your car loan open also helps extend the length of your credit history. If you have no other open credit (like a credit card), keeping your car loan open may be advantageous in building up your score if you eventually intend to buy a house.
5 Strategies for Paying Off Your Car Loan Early
If you have a simple interest car loan, your credit is in good standing and your loan doesn’t have any payoff penalties, it may be wise to pay off your car loan ahead of schedule. Not only will you avoid spending heaps of money on interest, but it will also give you the financial freedom of hundreds of dollars back in your monthly budget.
The best advice for paying off a car loan early: treat it like a mortgage. If you are a homeowner, you have likely heard that making an extra (13th) payment toward your mortgage principal every year can shave years off your loan. If you pay even more toward the principal each year, you can easily get your 30-year mortgage down to 15 years—and you’ll be able to drop PMI (private mortgage insurance) costs much earlier.
Of course, home loans tend to be much bigger than vehicle loans, so the potential to save is much larger, but the logic works the same with your car loan.
These strategies for early payoff are all effective, if done right:
1. Make One Large Extra Payment Every Year
If you can count on your grandma slipping a fat check into your Christmas card every year without fail, don’t use that money to splurge on alcoholic eggnog (OK, maybe one bottle). Instead, apply it directly to your car loan as a lump sum.
If you have autopay scheduled online, you can log into your account and simply arrange to make a one-time payment. If you’re old-fashioned and pay by phone or mail, simply call your lender and let them know you’d like to make an extra, one-time payment toward the principal.
Apply this logic to any unbudgeted (aka, not-planned-for) funds, like a bonus at work or a tax refund.
2. Make a Half Payment Every Two Weeks
Talk with your lender to see if you can switch to biweekly payments, instead of monthly. If your lender allows you to pay half of your monthly loan amount every two weeks, you will wind up making 26 half payments. Divide 26 by 2, and you get 13 full months of payments, paid over 12 months. That means, by the end of the year, you will have essentially made an extra car payment.
Just check your budget first to ensure that kind of payment plan is feasible.
3. Round Up
Rounding up to the nearest $50 or even $100, if you can swing it, is a great way to add extra money every month to the principal. For example, if your monthly payment is $337, you could round up to $350 or even $400 to essentially pay an extra $13 or $63 a month. This will wind up knocking a few months off the life of your loan.
If you have autopay scheduled, log onto your loan platform and see if you can add the additional funds toward the principal each month so you don’t even have to think about it.
4. Resist the Urge to Skip a Payment
Some lenders may let you skip one or two payments a year. So kind of them, right? Wrong. They do this knowing it will extend the life of your loan, meaning they will rake in even more of your hard-earned cash in interest fees.
Unless you fall on very hard times, fight the urge to skip a payment. You will wind up paying more in the end if you do.
5. Refinance, but Exercise Caution
If you had a poor credit score when you bought your car and opted for a seven-year loan to keep payments low, it might make sense to refinance. Perhaps you’re two years into the loan, you’ve got a higher-paying job, and your credit score is in great shape. You could potentially refinance at a lower APR and build the loan out over 36 months, saving you two years and lots of money in interest.
But borrower beware: Don’t refinance to get a lower monthly payment by extending a loan, as you will end up just paying more in interest.
When You Shouldn’t Pay Off Your Car Loan Early
As we’ve seen, it doesn’t always make sense to pay off your car loan early. But there are more reasons to hold your horses than just payoff penalties and precomputed interest.
Here are some other reasons not to pay off your car loan early:
Lack of emergency savings. Bankrate reported early in 2021 that most Americans could not afford a $1,000 emergency. Just 39% have enough to cover such an unexpected expense. If you are a part of that 61% without a well-padded emergency fund, prioritize adding funds to a high-yield savings account to protect yourself and your family should the unthinkable happen. And it’s not just your family’s medical emergencies; you may need to cover a deductible on your renter’s insurance in the case of a break-in, the cost of an unexpected car repair or even a terrifying trip to the vet when your dog eats something he shouldn’t.
Higher-interest loans. If you have a reasonable interest rate on your car loan but are drowning in credit card debt, focus on the debt that has the highest interest rate. Credit cards historically have interest rates in the high teens, so they make the most sense to pay off first. If you are free of credit card debt but have a mortgage or student loans, compare those interest rates to that of your car loan to figure out which makes the most sense to pay down with extra funds.
Lack of credit history. If you refuse to get a credit card and don’t yet have a house, a car loan is your best bet for building your credit score. Keeping your car loan open could positively affect your credit score.
Investments. For most drivers, car loan APRs are not terrible. If you have some extra funds and are thinking about paying off your low-interest car loan, consider instead investing in your retirement fund or even buying a few stocks on your own. The average stock market return is about 10%. Obviously, you could wind up losing money, but in general, if you invest and hold, over time, you should expect your money to grow.
Timothy Moore is a managing editor for WDW Magazine, and a freelance writer and editor covering topics on personal finance, travel, careers, education, pet care and automotive. He has worked in the field since 2012 with publications like The Penny Hoarder, Debt.com, Ladders, Glassdoor, Aol and The News Wheel.
Costco has aggressively turned on its head the notion that a store brand is a notch below a national brand. How? By using its coast-to-coast strength to strong-arm suppliers to put quality as well as value into its Kirkland Signature offerings. A quarter of Costco’s annual sales now reportedly come from its Kirkland product lines, which first hit store shelves in 1995.
It’s no surprise. Costco continually upped its array of Kirkland Signature products, currently numbering 364 individual items, according to Costco’s website. Wary of store-branded items? Don’t be with Kirkland Signature. Many, if not all, are manufactured by top national and regional companies, including Duracell, which makes Kirkland Signature batteries, one of our recommendations.
On some Kirkland Signature products, don’t be surprised to see the name-brand manufacturer’s name co-branded with the Kirkland Signature, including the renowned Stearns & Foster on a Kirkland Signature by Stearns and Foster mattress (starting at $1,049.99), and nationally known Ocean Spray on the Kirkland Signature Cranberry Premium juice.
You’ll find the Kirkland Signature logo on everything from coffee to chicken stock, and golf balls to cheese wheels. We took a closer look at several Kirkland products getting accolades from customers and critics. You should check them out, too.
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Kirkland Signature Organic Animal Crackers
Whether you’re feeding your children or your own inner child, Kirkland Signature Organic Animal Crackers are off the leash. The sweet snacks, in case you forgot, are in the shape of bite-size animals. Kirkland organic animal crackers come in a 64-ounce barrel, priced at $9.99, or about 16 cents per ounce. Walmart was selling a 24-ounce barrel of Stauffer Biscuit Co. (non-organic) animal crackers for $3.98, or about 17 cents per ounce.
If you’re not a Costco member, you can order the same barrel of animal crackers on Amazon.com, but you’ll pay nearly double: $15.98, or about 25 cents per ounce. Shipping is free for Prime members.
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Kirkland Signature Bacon
If everything is better with bacon, as the saying goes, then everything is super better with Kirkland Signature Bacon. The product-testing pros at Consumer Reports put bacon to the test and deemed Costco’s store-brand regular sliced bacon the top dog – make that the top pig. Testers raved about the taste, “noting its crispiness and balance of fat and meat flavors.”
They also raved about its price: Kirkland bacon typically sells for $1.50 less per pound than name-brand competitors. The Kirkland Signature sliced bacon comes in a pack of four one-pound individually wrapped packages for $18.99.
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Kirkland Signature Batteries
With back-to-school shopping revving up and, ahem, the holiday shopping season not that far away, you’re going to need more power for all those energy-sucking gadgets. Kirkland Signature batteries can keep all those electronic toys and devices charged up at bargain prices. A 48-pack of Kirkland Signature AA batteries — made by Duracell — is $13.99 (down from $15.99 in November 2020), or about 29 cents per battery. BONUS: The day I was there, Kirkland batteries were on sale for $4 off, making this packet of AA batteries $9.99, or 20 cents per battery.
Stepping into name-brand batteries will cost you more at Costco (and much, more at other places). A 40-pack of Duracell CopperTop AA batteries is $17.99, for example, or more than 44 cents per battery. (Costco often puts Duracell batteries on sale, however, so check the flyer or shelf tag if you must have a name brand.)
Meanwhile, Walmart was selling 24-packs of Energizer AA batteries for $16.24, or 68 cents per battery.
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Kirkland Signature Cashews
Costco knows nuts, and its Kirkland Signature Whole Cashews are a prime example. That’s not just this nut speaking.
“Costco’s nuts are always super-fresh and high-quality,” raves food and cooking website TheKitchn.com. “Unless you’re a big-time baker, 2- and 3-pound packages of nuts might seem like a daunting purchase, but don’t forget that they freeze beautifully.”
A 2.5-pound container of Kirkland Signature whole fancy cashews goes for $14.99, or $5.99 per pound, a good savings over the going rate for 2-pound, 1-ounce containers of Planters whole cashews at Walmart. They were selling for $18.98 per container, or about $9.49 per pound.
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Kirkland Signature Cheese Wheel
Excessive, yes, but there’s an odd appeal to having your own 72-pound wheel o’ cheese. Costco knows this and complies. The Kirkland Signature Whole Wheel Parmigiano Reggiano can be yours for $949.99 or $13.99 per pound (up fifty bucks from 2019, when it was $899.99, or $12.50 a pound). I’ve had a piece of said wheel and it’s exceptional.
That per-pound price is a bargain, by the way, compared to Wegmans Italian Classics Parmigiano Reggiano Cheese sold at the regional Wegmans supermarkets, where chunks were going for $20.99 a pound (in various size chunks). But alas, the question inevitably arises: What do you do with a whole wheel of Parmigiano Reggiano? One answer: Pasta – lots and lots of pasta. And some foodie sites note if properly stored, the aged cheese can last for many months, and some say it can be frozen.
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Kirkland Signature Chicken Stock
For home chefs who do a lot of cooking, Kirkland Signature Organic Chicken Stock is a winner in taste and price. But be warned: You’re bulk-buying an entire case of chicken stock.
Still, it’s a good investment. Stock has a long shelf life, and the six quart-size boxes of organic chicken stock you’ll get at Costco cost just $10.99, or about $1.83 per quart. At Walmart, a single quart-size box of Swanson chicken stock was selling for $2.72; however, it is not organic.
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Kirkland Signature Coffee Pods
If K-cups for the Keurig brand of coffeemakers help power you through your day, Costco has something for you to brew. Its lineup of boxes of Kirkland Signature K-cups include boxes of 120 medium roast pods for $34.99, or about 29 cents a pod.
You don’t have to go far to price-compare. Costco sells other brands, including a box of 72 Dunkin Donuts original blend medium roast coffee pods for $36.99. That comes out to 51 cents a pod.
Not a podster? Costco features a whole lineup of Kirkland Signature ground and whole-bean coffee, plus those of competitors.
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Kirkland Signature Diced Tomatoes
There’s a lot of cooking going on in our house, even by me. We go through a lot of tomatoes, and turn to Costco for help. In my opinion, Costco’s Kirkland Signature organic diced tomatoes — in boxes of eight 14.5-ounce cans — are the best. Each can is packed densely with tomatoes, whereas other, national brands are more watery. Each box sells for $5.99, or about 75 cents per can (and the price hasn’t changed in years). At Walmart, similar-size cans of its store brand Great Value organic petite diced tomatoes sell for $1.08.
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Kirkland Signature Dishwasher Pods
If you run the dishwasher a lot, costs mount for those convenient dishwasher soap pods, especially if you’re buying name-brand detergent. You don’t have to.
Kirkland Signature Premium Dishwasher Pacs get the job done at a fraction of the price of national brands. You’ll pay $9.99 for 115 pods, or less than 9 cents per load. Costco also stocks packages of Cascade Complete Action pods for $15.99 for 90 pods, or more than 18 cents per load, twice the cost of the Kirkland brand. In recent testing by Consumer Reports, Kirkland’s pods bested all competitors including name-brand pods from Cascade and Finish.
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Kirkland Signature Organic Brown Eggs
We go through a lot of eggs in our home, and the 24-pack of Kirkland Signature Organic Brown Eggs are always on the shopping list. They’ve been consistently good, and they come in at the right price: $6.29 for the 24-pack. That’s 29 cents per egg.
By comparison, a carton of 18 Walmart Marketside large organic was $5.74, or 32 cents per egg.
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Kirkland Signature Energy Shots
Sometimes you need a little liquid encouragement to get through your busy days. Not that. This: Costco sells 48-count packages of 2-ounce Kirkland Signature Energy Shots for $34.99, or about 73 cents per shot. The day I was there an $8-off coupon discounted that price to $26.99, or 56 cents per shot.
By contrast, a single 1.93 ounce shot of 5-Hour Energy was selling for $2.78 at Walmart.
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Kirkland Signature Food Wrap
Popularly known as “Saran wrap,” Costco can’t call its food wrap by that name because SC Johnson owns the trademarked Saran brand. By any name, however, the Kirkland Signature version is a winner on quality and price.
And here’s one where Costco’s Kirkland Signature co-brands with a national brand, Stretch-Tite. A single 3,000 square foot roll of Kirkland Signature Stretch-Tite Plastic Food Wrap sells for just $13.49, or about a half a cent per square foot. That’s 3,000 square feet of plastic wrap. At Walmart, a 225-square-foot roll of Reynolds Kitchens plastic food wrap was selling for $2.98, or about 1 cent per square foot.
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Kirkland Signature Gasoline
Not every Costco has a gas station adjacent to it, but the club locations that do have them see steady, and strong, business. What gives? The savings. A Costco in central Virginia was selling regular Kirkland Signature Gasoline for roughly 9% less than nearby national brand stations. Sure, the difference is a few pennies per gallon, but on a fill-up you might save $3 or more – not bad if you’re heading to Costco anyway.
Factor in how valuable your time is, though. Even on a weekday afternoon, at least 7 vehicles were waiting in line, sometimes for 20 minutes or longer, to get to Costco’s gas pumps. That’s a lot of idling.
And one pro tip, fellow Costco gas guzzlers: Costco’s hoses are extra long, meaning you don’t have to drive up to the pumps on the side of the car where your gas tank door is located. If you’re close enough to the pump, the hose will reach either side. Many people waste precious minutes waiting to pull up to the “right” side of the pump.
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Kirkland Signature Golf Gear
When Costo released its Kirkland Signature golf balls in 2016, they were an immediate sensation, highly lauded by pros and amateurs alike. They also quickly sold out, as they were compared to the highly lauded Titleist Pro V1.
They’re back. You can pick up a 24-pack of Kirkland Signature V2.0 Performance three-piece golf balls for $24.99. Costco-branded golf balls typically retail for 60% less than a Titleist.
But wait. There’s more: The equally lauded Kirkland Signature KS1 Putter is on Costco shelves for $139.99. Need a bit more in your bag? A Kirkland Signature 3-piece golf wedge set is $159.99.
While you’re at it, pick up a four-pack of Kirkland Signature golf gloves — sizes vary — for $19.99.
We can’t guarantee this Kirkland Signature will improve your game, but we can guarantee you’ll save a few bucks.
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Kirkland Signature Honey
Costco is sweet on its Kirkland Signature brand of 100% U.S. raw, unfiltered honey in 3 pound jars. The price goes down easy: $8.99, or about 19 cents per ounce. A 12-ounce jar of Walmart’s Great Value raw, unfiltered honey was $3.38, or 28.2 cents per ounce.
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Kirkland Signature Italian Sparkling Water
If you like your Italian mineral water sparkling, you might often turn to the classic San Pellegrino. Costco knows that. It stacks cases of its Kirkland Signature Italian Sparkling Mineral Water near cases of Pellegrino. I detected no taste difference, but there certainly was a price difference.
A case of 24 16.9-ounce bottles of Kirkland Signature Italian sparkling water was selling for $12.99 (same price as 2019), while a similar size case of Pellegrino sparkling water was $17.99 ($1 more a case at Costco than 2019).
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Kirkland Signature Laundry Detergent
So … it does all come out in the wash.
Costco tapped its Kirkland Signature brand to help do the laundry, and less expensively than national brands, some stacked and stocked near the KS brand.
For comparison’s sake, we spotted the Kirkland Signature UltraClean Premium liquid laundry detergent in 194-ounce jugs selling for $15.99 and yes, the packaging does look strikingly like Tide’s signature colors. UltraClean comes in at 8 cents per ounce.
Nearby, stacks and stacks of 150-ounce jugs of Tide Advance Power laundry detergent challenged UltraClean. But Tide Advance was selling for $19.99, or 13 cents per ounce.
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Kirkland Signature Olive Oil
Costco’s olive oil rises to the top, notes the University of California, Davis, which conducted a chemical and sensory study of olive oils. Kirkland Signature Organic Extra Virgin Olive Oil was one of only a few imported oils that met international and U.S. standards for extra virgin olive oil. The many brands that fell short in the testing were diluted with cheaper oils and exhibited problems with quality and flavor.
What’s also nice is the price. A 2-liter bottle of Kirkland Signature EVOO was $11.99, or about 17 cents per ounce. News flash: You can skip the Costco membership and get this same 2-liter bottle of Kirkland Signature EVOO on… wait for it: Walmart.com Um-hmmm. But it will set you back $34.24, nearly three times the cost at Costco.
Walmart does have its own branded EVOO. Its Great Value organic extra virgin olive oil is $9.86 for a 51-ounce jar, or about 19 cents per fluid ounce, and we’re not sure if it’s received accolades.
Note, too, the Kirkland Signature name is on a wide lineup of other cooking oils, including coconut, canola and corn.
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Kirkland Signature Organic Peanut Butter
When my wife finally weaned me off creamy (and delicious) Jif peanut butter and into the world of peanut butter made without sugar (just peanuts; maybe some salt), my snacking world changed.
Our go-to brand had been Smucker’s organic creamy peanut butter, but after diving into Kirkland Signature Organic Peanut Butter, that, too, has changed. It’s just as good as Smucker’s, maybe even better, and there’s no arguing with the price. You can get two 28-ounce jars of Kirkland peanut butter for around $10, or 18 cents per ounce, while just one 16-ounce jar of Smucker’s costs $4.48 at Walmart, or 28 cents per ounce.
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Kirkland Signature Rotisserie Chicken
The Costco I go to in Virginia’s Shenandoah Valley must roast hundreds of chickens a day in its giant rotisserie oven, which is constantly getting loaded and off-loaded by the white-coated chicken changers. These Kirkland Signature Rotisserie Chickens are always tasty, and what’s not sold is repurposed in other Costco fresh foods made onsite. You can find some of that leftover poultry in Costco’s Kirkland Signature chicken noodle soup and packages of shredded chicken, great for creating a variety of your own dishes at home (and it freezes well).
The best part: Costco has consistently kept the price of each roasted chicken at $4.99, likely looked at as a loss leader. At a nearby Walmart, a lone rotisserie chicken was selling for $7.67 with nary a rotisserie in sight.
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Kirkland Signature Toilet Paper
No one longs for the darker days of the pandemic, hunting down toilet paper anywhere you could. Some retailers, Costco included, limited how many packets you could buy. And most of what Costco sells in that department are 30-packs.
TP shortages seem to be a thing of the past. And not that it’s anybody’s business, but our house is Team Costco when it comes to TP. Kirkland Signature 2-ply bath tissue is a steal. Thirty high-quality rolls sell for just $16.99, a price Costco didn’t up during the pandemic. That price has been steady for years.
Facial tissue is another story. One shopping expert we consulted knocked the quality of Costco’s Kirkland Signature facial tissue, earning it a spot on our list of the worst things to buy at warehouse clubs.
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Kirkland Signature Organic Tortilla Chips
This one is fairly new on our Kirkland Signature amazing lineup of snacks: 40-ounce (2.5 pounds) bags of Kirkland Signature organic tortilla chips. At about $5 a bag, or 12 cents per ounce, the price is right and the chips are tasty and durable enough to stand up to my amazing salsa-with-a-burn (made with Kirkland organic diced tomatoes, naturally). Compare that to a 7.5-ounce bag of Simply Doritos Organic White Cheddar Tortilla Chips at Walmart. They sell for $2.98, or 40 cents per ounce.
Or if you crave the Kirkland Signature chips and you’re not a Costco member, you can buy a 40-ounce bag on Walmart.com … for $22.20.
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Kirkland Signature Vitamin Water
Yes, bottles of the fruit-flavored, no-calorie and mineral-rich Kirkland Signature Vita Rain Zero are strikingly similar to Glaceau Vitaminwater Zero, but I dare you to find any difference in taste. There is a difference in price, which is significant to me; I drink a lot of this stuff.
Costco tabbed Kirkland’s 24-count variety pack of 20-ounce Vita Rain Zero bottles at $9.99, or about 42 cents per bottle. Walmart was selling Coca-Cola-owned Vitaminwater Zero Sugar Rise, electrolyte-enhanced water with vitamins for $4.98 for a six pack (these are 16.9-ounce bottles), or about 83 cents per bottle.
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Kirkland Signature Vodka
Wine snobs are already familiar with Kirkland Signature wines (more on those later), but spirits snobs might still be in the dark about Costco’s store-brand booze. Costco isn’t allowed to sell liquor in all of its stores; many states limit the warehouse club to beer and wine. But some states do give the green light to Costco selling liquor, and its vodka is a hands-down winner, rave spirits experts including Bon Appetit.
I first stumbled upon Kirkland Signature Vodka while shopping at a Costco on Florida’s Gulf Coast. Not that I’m so into vodka, but I do know good from bad. Kirkland’s vodka ranks up there with my fav, Tito’s Handmade Vodka, and it costs less.
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Kirkland Signature Wine
Costco is the biggest seller of wine in the U.S., with estimated annual wine sales of $1.8 billion, and the warehouse club’s Kirkland Signature wines are a big reason behind the booming demand. As Annette Alvarez-Peters, who heads Costco’s wine-buying team, told Wine Spectator, “The Costco consumer is very loyal to the [Kirkland Signature] brand. They will always give the item a shot.” And why not? Wine rating websites typically give Kirkland Signature wines high scores in the mid-to-upper 80s out of 100.
One hint for picking especially good Kirkland Signature wines: When you see the Costco brand on the front label, turn the bottle around. You just might find the name of the source winery on the back label. That can tell you a lot about the experience of the wine maker and the quality of the grapes. Alternatively, read reviews online. This Costco-centric wine blog, for one, has taste-tested plenty of Kirkland Signature wines. In my own taste-testing of whites I found a nice Kirkland Signature Cabernet Sauvignon and a Kirkland Sonoma County Chardonnay for $7.99 each. These are big boys, too,1.5 liter bottles, not the typical 750 milliliters for mass retailers’ house wines, including Walmart, with its private label wines called Winemakers Selection, selling for about $5 to $12.99 per bottle, or Aldi, with its Winking Owl varieties, including chardonnay, pinot grigio, shiraz, zinfandel, merlot and cabernet sauvignon, selling for $2.95 a bottle.
Even at a time when many Americans are simultaneously not saving money and saving more money than ever, savings accounts remain a valuable place to safely store your money. With FDIC insurance, your balance isn’t at risk, and you can withdraw it as needed.
The drawback, however, is the relatively low interest rates as the Federal Reserve cut rates in March 2020 in response to the COVID-19 pandemic.
Most people know that when a bank offers you an APY on a savings account, it’s talking about interest rates. In general, the higher the interest rate, the better. However, APY is subtly different from the interest rates you may be familiar with, and that difference can cost you if you’re not aware of it.
Let’s take a closer look at what exactly APY is, how it affects your savings account, and what that means for you in terms of depositing and withdrawing money.
In this article
What is APY?
APY is short for annual percentage yield, and it describes the percentage of your balance you would earn if you left the money sitting in that account for a full year, untouched. This includes any interest earned later in the year on interest accumulated earlier in the year.
APR, on the other hand, is short for annual percentage rate, and that’s the actual annual interest rate offered on your savings account. It does not include any interest earned later in the year on interest accumulated earlier in the year.
Knowing the difference is critical, and it’s all about understanding compounding.
Different savings accounts pay out interest at different times throughout the year. Some pay out interest once per quarter, while others do it once per month.
When interest is paid out, the bank calculates the average balance of your account during that time span, then uses that number to determine how much interest to pay you. It uses a fraction of your APR that matches the fraction of the year that it’s paying out for.
APR and APY would be exactly the same if banks paid out interest once a year, but when they pay it out more frequently, the interest you earn in, say, the first quarter begins to earn interest itself in later quarters.
So, let’s say that your bank pays out a 1.2% APR on your savings account, but they compound monthly. That means that each month, it pays out 1.2%/12, or 0.1% of your average balance for the month. If that average balance is $10,000, it pays you $10.
The next step is where APR and APY begin to diverge. The next month, if you left the account alone, you have an average balance of $10,010 in there. Again, the bank pays out 0.1% of your average balance, but that now means you accumulate $10.01 in interest — 0.1% of $10,010. Now, your balance is $10,020.01. The next month, the bank pays $10.02 in interest, changing your balance to $10,030.03. This keeps repeating until you wind up with a balance, at the end of the year, of $10,120.66.
For this account, which offers a 1.2% APR and compounds monthly, you would be quoted the APY instead, and that’s 1.2066% (likely rounded to 1.21%). In other words, the APY is just a bit higher than the APR, and the difference gets bigger when the APR is higher and when interest is paid out more frequently (monthly is better than quarterly, for example, and produces a bigger gap between APY and APR).
The important thing to remember is that to get the full APY savings, you have to leave your money there untouched for the full year. If you pulled your money out after two months, with a balance of $10,020.01, your annual rate of return on that money would only be 1.2006%, not the 1.21% you’d get over the course of a full year. You only get the full APY value if you leave your money alone for a full year.
Why is APY so important?
There are two big reasons why it’s so important to understand APY.
First, APY indicates what your annual rate of return would be if you left the money alone for a full year. You only get your full APY if you leave the money completely alone — interest included — for a full calendar year. You can withdraw it earlier, but your rate of return on that money will be lower because you didn’t allow for the time needed for your interest earnings to fully grow. This tends to be a small difference when interest rates are as low as they are now, but it can make a big difference in times with higher interest rates.
Even with that catch, APY is the preferred number banks like to quote you because it’s a little higher than APR and thus looks better. In other words, APY is the number you should use to compare the interest rates on various savings accounts, and it’s the most important number if you’re simply using a savings account to hold a lump of cash for a while until you need to withdraw it.
Where can I get the best APY?
Let’s take a snapshot look at the current APY offerings from several of our top savings account picks. In general, the best savings account rates are found with online banks, so it’s worthwhile to know the basics of online banking before choosing one.
*Rates accurate as of July 2021.
If your goal with a savings account is to simply deposit a sum of money, let it sit until you need it, then withdraw it, with minimal transactions or other needs, then APY is the most important factor in a savings account.
Thus, for simply putting aside a windfall for the future, Varo is currently on of the best high-yield savings accounts. This will change over time as interest rates change, however.
If you’re looking for a more full-featured bank, want a checking account and strong customer service features, APY becomes a less essential factor, particularly when interest rates are low. This is because banks change their interest rates somewhat regularly, and because the amount you’ll earn is usually relatively small compared to other banking fees and potential inconveniences due to poor customer service.
For a good all-around bank with strong interest rates, I recommend Ally Bank. Its mix of great customer service, strong online banking tools, and a wide ATM network make it a great choice as a primary bank, and its interest rates are competitive, too.
When banks quote you interest rates on savings accounts, they typically quote it in the form of APY, which refers to how much the account would return to you if you did not touch your deposit for a year and allowed the interest to accumulate. If you withdraw your money in, say, half a year, your money will have grown a little less than half of the APY. Still, APY remains a useful way to compare savings accounts, particularly those where you simply want to place money and don’t need all the features of a full-service bank. I currently recommend Varo if your focus is solely interest rates, and Ally Bank if you’re looking for a robust all-around option.
The Chase Freedom Flex and Freedom Unlimited cards are again offering new signups a 0% APR rate on purchases and balance transfers for 15 months after card opening. Note: for balance transfers there is a 3% fee.
These had gone away during Covid and have now returned.
Just as you owe taxes on money that you earn by working, you may also owe taxes on money that you earn through investments.
That’s important for investors to understand, so that they can plan for the tax implications of their investment strategy. Understanding how your investments could impact your taxes better prepare you for tax season and allow you to make more informed investment decisions.
Some investments may not look as appealing after you’ve factored in the potential impact of taxes, and taxes could impact both your returns and your payback period. That’s why it’s important to know the answer to the question: How are stocks taxed?
Before we get into it, we just want to say up front that we don’t provide tax advice. We can outline a few tax guidelines that you should pay attention to but, to fully understand the implications, you’ll want to consult a tax professional.
When Do You Pay Taxes on Stocks?
. There are several scenarios in which you may owe taxes related to the stocks you hold in an investment account. The most well known is the tax liability incurred when you sell a stock that has appreciated in value since you purchased it. The difference in value is referred to as a capital gain. When you have capital gains, you must pay taxes on those earnings.
You owe capital gains taxes only on your investments’ growth, based on the increase in value from when you bought them until when you sell them. That’s important to consider, whether you’re purchasing IPO stocks or buying blue chip established companies.
There are two types of capital gains tax:
Short-term Capital Gains
Short-term capital gains tax applies when you sell an asset that you owned for a year or less that gained in value. These gains would be taxed at the same rate as your typical tax bracket (here they are for the 2021-2022 tax year), so they’re important for day traders to consider.
Long-term Capital Gains
Long-term capital gains tax applies when you sell an asset that gained in value after holding it for more than a year. Depending on your taxable income and tax filing status, you’d be taxed at one of these three rates: 0%, 15%, or 20%. Overall, long-term capital gains tax rates are typically lower than those on short-term capital gains.
If you sell a stock for less than you purchased it, the difference is called a capital loss. You can deduct your capital losses from your capital gains each year, and offset the amount in taxes you owe on your capital gains.
You can also apply up to $3,000 in investment losses to offset regular income taxes.
Taxes on Investment Income
You may have taxes related to your stock investments even when you don’t sell, if the investments generate income.
You may receive periodic dividends from some of your stocks when the company you’ve invested in earns a profit. If the dividends you earn add up to a large amount, you may be required to pay taxes on those earnings. Each year, you will receive a 1099-DIV tax form for each stock or investment from which you received dividends. These forms will help you determine how much in taxes you owe.
There are two broad categories of dividends: qualified or nonqualified/ordinary. The IRS taxes nonqualified dividends at your regular income tax bracket. The rate on qualified dividends may be 0%, 15%, or 20%, depending on your filing status and taxable income. This rate is usually less than the one for nonqualified dividends, though those with a higher income typically pay a higher tax rate on dividends.
This money can come from brokerage account interest or from bond/mutual fund interest, as two examples, and it is taxed at your ordinary income level. Municipal bonds are an exception because they’re exempt from federal taxes and, if issued from your state, may be exempt from state taxes, as well.
Net Investment Income Tax (NIIT)
Also called the Medicare tax, this is a flat rate investment income tax of 3.8% for taxpayers whose adjusted gross income exceeds $200,000 for single filers or $250,000 for filers filing jointly. Taxpayers who qualify may owe interest on the following types of investment income, among others: interest, dividends, capital gains, rental and royalty income, non-qualified annuities, and income from businesses involved in trading of financial instruments or commodities.
Recommended: Investment Tax Rules Every Investor Should Know
When Do I Not Have to Pay Taxes on Stocks?
Again, this should first and foremost be a discussion you have with your tax professional. But there are a few situations you should know about where you often don’t pay taxes when selling a stock. For example, if you are investing through a tax-deferred retirement investment account like an IRA or a 401(k), you won’t have to pay taxes on any gains when you buy and sell stocks inside the account. However, if you were to sell stock in one of these accounts and then withdraw it, you could owe taxes on the withdrawal.
How to Pay Lower Taxes on Stocks
If the answer to “Do you have to pay taxes on stocks?” is “yes” for your personal financial situation, then the question becomes how to pay a lower amount of taxes. Strategies can include:
• Holding on to stocks long enough for dividends to become qualified and for any capital gains tax to be in the long-term category because they are typically taxed at a lower rate
• Offsetting your capital gains with capital losses
• Putting your investments into retirement accounts or other tax-advantaged accounts
• Avoiding the temptation to make early withdrawals from your 401(k) or other retirement accounts.
The tax implications of your investments will vary depending on the types of investments in your portfolio and the accounts you use, among other factors. That’s why it may be worthwhile to work with an experienced accountant and a financial advisor who can help you understand and manage the complexities of different tax scenarios.
Many investment banks offer investing advice and guidance tailored to your needs. Some even offer advanced online tools to help you balance your investments and stay on target to reach your goals. Research and compare accounts to find an investment bank that meets your needs.
The SoFi Invest® brokerage platform offers convenient, easy-to-access investing options when you buy stocks online that pair the best of automated investing with custom advice from financial professionals. The platform allows you to get started investing by easily purchasing stocks, exchange-traded funds, and crypto currencies.
Choose how you want to invest.
SoFi Invest® The information provided is not meant to provide investment or financial advice. Investment decisions should be based on an individual’s specific financial needs, goals and risk profile. SoFi can’t guarantee future financial performance. Advisory services offered through SoFi Wealth, LLC. SoFi Securities, LLC, member FINRA / SIPC . SoFi Invest refers to the three investment and trading platforms operated by Social Finance, Inc. and its affiliates (described below). Individual customer accounts may be subject to the terms applicable to one or more of the platforms below. 1) Automated Investing—The Automated Investing platform is owned by SoFi Wealth LLC, an SEC Registered Investment Advisor (“Sofi Wealth“). Brokerage services are provided to SoFi Wealth LLC by SoFi Securities LLC, an affiliated SEC registered broker dealer and member FINRA/SIPC, (“Sofi Securities).
2) Active Investing—The Active Investing platform is owned by SoFi Securities LLC. Clearing and custody of all securities are provided by APEX Clearing Corporation.
3) Cryptocurrency is offered by SoFi Digital Assets, LLC, a FinCEN registered Money Service Business.
For additional disclosures related to the SoFi Invest platforms described above, including state licensure of Sofi Digital Assets, LLC, please visit www.sofi.com/legal.
Neither the Investment Advisor Representatives of SoFi Wealth, nor the Registered Representatives of SoFi Securities are compensated for the sale of any product or service sold through any SoFi Invest platform. Information related to lending products contained herein should not be construed as an offer or pre-qualification for any loan product offered by SoFi Lending Corp and/or its affiliates. IPOs: Investing early in IPO stock involves substantial risk of loss. The decision to invest should always be made as part of a comprehensive financial plan taking individual circumstances and risk appetites into account. Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice. SOIN18137
Tired of looking for a branch or navigating a clunky app when you need to manage your bank account?
For anyone who’s ready to walk away from traditional branch banks, an industry of online challenger banks has blown up over the past decade. Technology companies have swooped in to respond to the need for more mobility, better apps and lower fees.
Varo and Chime, two of the top players in the online banking space, compete for customers with no-fee bank accounts and high-yield savings you can set up and manage from your smartphone.
Which is a better fit for you? See how they compare:
Varo vs. Chime Comparison
Varo (previously Varo Money) and Chime each offer checking and savings accounts through user-friendly mobile apps and online banking. Here’s how we rated each company.
Chime and Varo offer most of the same account options aimed at simplifying banking and savings for anyone who’s ready to say goodbye to traditional banks.
Small Business Banking
$2.50 + third-party fees for out-of-network ATMs; up to $5.95 retailer fee for over-the-counter deposit or withdrawal
$2.50 + third-party fees for out-of-network ATMs; up to $5.95 retailer fee for over-the-counter deposit; $2.50 + up to $5.95 retailer fee for over-the-counter withdrawal
Varo Bank Review
Chime Bank Review
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Chime is the leader in online banking, offering a no-frills account with features meant to simplify your money management and help you reach savings goals.
Chime Features and Fees
Chime offers fee-free online spending and saving accounts. It includes built-in automatic saving features, SpotMe fee-free overdraft protection, access to two fee-free ATM networks and more.
Chime is known for fee-free services, so you won’t pay for much. You’ll just pay a $2.50 out-of-network ATM fee, plus any fee charged by the ATM operator. And you could pay up to $4.95 to withdraw or deposit cash through your debit card at a Green Dot retail location.
Chime Bank Review
Is Chime right for you? Read our full Chime review to learn more about its features and see what it has to offer.
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As of July 2020, Varo is the first banking app to gain approval for a full bank charter in the U.S. That means it’s its own bank, unlike other banking apps, which provide technology and work with national banks to provide the financial services and accounts behind the scenes.
It hasn’t yet taken full advantage of its status to offer a full suite of financial services, but it does offer services beyond its original stripped-down checking and savings account, including a forthcoming credit builder program and small cash advance loans.
Is Varo a good bank? Read our full review to learn more about its features and decide whether it’s a good fit for you.
Varo Features and Fees
Varo offers an online, app-based checking and savings account with built-in automatic savings tools, optional overdraft protection called Varo Advance, access to a network of fee-free ATMs and more. It also offers cash advance loans and is developing a credit builder program called Varo Believe for qualifying customers.
Nearly all Varo features are fee free. You’ll just pay $2.50 to Varo to use an out-of-network ATM, plus third-party ATM fees. And you could pay a third-party fee up to $4.95 to the retailer if you deposit or withdraw cash over-the-counter at a Green Dot location. If you use Varo Advance, you’ll pay a fee between $0 and $5, depending on how much cash you draw.
Varo Bank Review
Is Varo a good bank? Read our full Varo review to learn more about its features and decide whether it’s a good fit for you.
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More Details: Chime and Varo Bank Account Features
Both accounts offer these features:
Fee-Free Checking and Savings Accounts
Both Chime and Varo include a debit account (a.k.a. checking) and optional savings account, both with no monthly fees.
Automatic Savings Tools
Both accounts include simple ways to automatically build your savings account by setting rules to move money from checking to savings when you get paid and when you shop.
Both savings accounts offer higher-than-average APY on your savings account balance.
Chime offers 0.50% APY on savings with no minimum balance requirement.
Varo offers 0.20% APY on savings to any customers, and you can earn 3.00% APY in a given month if you receive at least $1,000 in direct deposits, maintain a minimum balance of $5,000 and keep both of your accounts above a $0 balance during that month.
Early Direct Deposit
As with many online banks, both accounts make your paycheck available up to two days early if you get paid through direct deposit. The money is available in your account as soon as your employer processes payroll, which could be up to two days before the scheduled payday.
Through Chime’s SpotMe overdraft protection program, the company will spot you up to $20 with no fee as long as your account has at least $500 per month in direct deposits. That limit can go up to $200 based on your account activity.
Through Varo Advance, you can add instant overdraft protection through the app with a small cash advance loan of $20, $50, $75 or $100, for a fee of $0, $3, $4 or $5, respectively.
With both Varo and Chime, you can deposit money into your bank account at more than 60,000 retail locations with Green Dot, which is a function many online banks don’t allow.
With either account, you can pay bills through ACH transfer by giving companies your bank account and routing numbers, or mail a paper check.
Both companies provide FDIC-insured accounts up to $250,000 (the typical amount for any bank account). Chime partners with The Bancorp Bank and Stride Bank, N.A., and Varo Money is backed by its own Varo Bank.
Instant Money Transfer
With both Chime and Varo, you can send money instantly with no fees to others who use the same app. Varo Bank also works with Zelle for money transfers to folks who use other banks, though it admits the connection isn’t always reliable (and is working to fix that).
Neither company uses ChexSystems, which many traditional financial institutions use to determine your eligibility for a bank account, so a bad banking history won’t necessarily disqualify you for these accounts. Neither company checks your credit report for a banking account or credit builder card, either.
Free ATM Withdrawals
A Chime account gives you access to 38,000 fee-free ATMs in the United States through the MoneyPass and Visa Plus Alliance networks. Varo’s account connects you to more than 55,000 fee-free Allpoint ATMs in the U.S.
Live Customer Support
Talk to a real person from either company via chat in the app, email or on the phone seven days a week.
Reach Chime customer service via email at [email protected], or by phone at 844-244-6363 during business hours: Monday through Friday 6 a.m. to 10 p.m. Central, and Saturday and Sunday 7 a.m. to 9 p.m.
Reach Varo customer service via email at [email protected], or by phone at 800-827-6526 during call center hours: Monday through Friday 8 a.m. to 9 p.m. Eastern, and Saturday and Sunday 11 a.m. to 7 p.m.
Stay on top of your Varo account balance with optional notifications anytime money moves in or out of your account. Chime gives you the option to receive a push notification when a direct deposit hits.
Credit Building Programs
Both companies offer a new, secure way to build credit.
Chime’s Credit Builder Visa credit card is a secured credit card with no annual fee, no credit check to apply and no minimum required deposit (an unusual feature for a secured card). It works like a debit card that lets you build credit.
Through the program, Chime members can move money into their Credit Builder account to back the card, make purchases with the card and have the balance automatically paid off from their Credit Builder account. Chime reports activity to credit bureaus, so the card is a less risky way to build or rebuild your credit.
Varo’s forthcoming Varo Believe program is nearly identical, backing a secured credit card with a dedicated amount of your choice from your Varo Bank account.
What They Don’t Offer
Neither platform offers these features:
Joint accounts or additional authorized debit card users.
Other financial products, like personal loans, auto loans and mortgages.
Small business banking services.
Paper checks (though you can use bill pay to have the banks send checks for you,
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Which Is Better: Varo or Chime?
Chime and Varo bank account features are nearly identical, with details that could sway you one way or the other.
Varo Bank Account: A
Chime Spending Account: A-
Both banks offer a fee-free checking account for deposits and spending. In both cases, you’ll automatically apply for this account when you set up your account in the app (or online). You can fund it through direct deposit or transferring money from an external bank account.
Both Chime and Varo eschew traditional banking fees, including monthly maintenance fees, minimum balance fees and overdraft fees.
Both accounts let you get your paycheck up to two days early compared with a traditional bank, because they release the funds as soon as your employer initiates the deposit.
Both accounts come with a Visa debit card you can use for transactions anywhere Visa is accepted, and for ATM withdrawals. Both are also connected to the Green Dot network, so you can deposit or withdraw cash at retail locations around the U.S.
Both Chime and Varo charge no overdraft fees and offer optional overdraft protection — but eligibility and details vary.
Chime SpotMe: Chime will spot you for an overdraft up to $200 and take it out of your next deposit. To be eligible, you just have to receive $500 in direct deposits every month.
Varo Advance: You can opt into overdraft protection as you need it with Varo Advance, a small paycheck advance you select instantly through the app. Choose an advance of $20, $50, $75 or $100, and pay a fee of $0, $3, $4 or $5, respectively. You’ll choose an automatic repayment date anytime between 15 and 30 days of the advance. To qualify, you have to have at least $1,000 in direct deposits within the past 31 days.
Varo Savings Account: A+
Chime Savings Account: B
Both Varo and Chime offer optional savings accounts that facilitate automatic savings and yield competitive interest rates.
Funding the Account
You can only fund a Chime Savings account by transferring money from your Chime Spending account — not through direct deposit or an external bank account. To add money from another source, you must first deposit it into your Spending account, then make an instant transfer.
You can deposit money into a Varo Savings account from your Varo Bank account in the app or directly from an external account through ACH transfer.
Savings Account Interest Rates
Both Chime and Varo savings yield interest at an annual percentage yield (APY) above the 0.06% national average for savings accounts reported by the FDIC.
Chime Savings offers a 0.50%% APY with no additional requirements.
Varo Savings offers a 0.20% APY with no requirements. You can earn up to 3.00% APY on balances up to $10,000 by receiving at least direct deposits of at least $1,000, maintaining a minimum $5,000 balance and keeping both your Bank and Savings accounts above $0 for the month.
Chime and Varo each let you select one or both of two savings “rules” that automatically move money into your savings account. Varo’s options are slightly broader than Chime’s.
Chime: Save when you get paid by transferring 10% of any direct deposit of $500 or more into savings. Save when you spend by rounding up Chime debit card transactions to the nearest dollar and depositing the digital change into savings.
Varo:Save Your Pay lets you set a percentage of your direct deposits to automatically transfer to savings. Save Your Change rounds up every transaction from your Varo Bank account — including debit card purchases, bill payments and transfers — to the next dollar and deposits the difference into your savings account.
All online-only banks are convenient relative to traditional branch banks, unless you prefer face-to-face service from bank tellers at a brick-and-mortar bank.
Each bank’s mobile app lets you manage your account 24/7, including mobile check deposit and money transfers, and live customer service agents are available if you need questions answered.
Varo and Chime accounts offer features many online banks don’t, including cash deposits via Green Dot, early paycheck access and flexible overdraft protection.
Varo App: A
Chime App: B
Chime and Varo both offer mobile banking apps that are more user-friendly and easier to navigate than what you’ll get for most traditional bank accounts. However, both are pretty simplistic, lacking the budgeting tools you’d find in a lot of mobile apps.
In both apps, you can:
View and manage your accounts.
Transfer money between savings and checking, to and from external accounts, and to other customers of the same bank.
Deposit checks using your smartphone camera.
Locate in-network ATMS.
Freeze your debit cards.
Manage overdraft protection.
Contact customer support (via chat or email).
Both apps give you the option to stay on top of your bank account balance by receiving a push notification every time money moves in or out of your account — via deposit or withdrawal, debit card purchase, or over-the-counter or ATM cash withdrawal. Chime also sends daily account balance alerts.
Small Business Banking
Neither Varo nor Chime offer small business banking accounts or products and services.
Both companies tout fee-free banking that eliminates many of the costs associated with traditional banks — largely because they don’t bear the expense of running brick-and-mortar locations.
You’ll pay no maintenance fees, overdraft fees or foreign transaction fees, and you can avoid ATM fees by using in-network ATMs.
With both banks, you’ll just pay for:
Out-of-network ATM: $2.50 for using an out-of-network ATM, plus any fee the ATM owner charges.
Cash deposit: You’ll pay a retailer fee up to $5.95 to deposit cash via Green Dot.
OTC cash withdrawal: You’ll pay a retailer fee up to $5.95 for a cash withdrawal via Green Dot. Chime also charges a $2.50 fee for over-the-counter withdrawal, while Varo does not.
Varo Advance: You’ll pay between $0 and $5 to use overdraft protection with Varo, while Chime’s SpotMe overdraft protection is free.
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How They Differ: Choosing the Right Bank for You
Overall, Chime and Varo offer similar banking products that will likely appeal to the same types of banking customers — but each has slight differences that might appeal to certain customers.
Who Should Join Either Bank?
You might prefer either account over traditional banks if:
You prefer the easy access and mobility of online banking.
You regularly run your account balance close to $0 or live paycheck to paycheck.
You’re often paid through direct deposit — you could benefit from an early payday!
You’re often paid in cash but want an online bank account.
You want an easy way to save money automatically.
You want a flexible and secure way to build credit without the risk of accruing debt.
A traditional bank or credit union is probably a better fit if you want to manage your checking, savings, loans, credit cards and investment accounts all in one place.
Who Should Join Varo?
Varo is better than Chime if:
You want to build an emergency fund. Varo’s Save Your Pay rule lets you set aside any percentage of your paychecks you want, so you can set it above Chime’s 10% Save When You Get Paid rule to help you reach your savings goals faster.
You want to make the most of your savings. Varo offers six times Chime’s interest rate on savings for qualifying account holders, though the rate comes with balance requirements.
You live in the Mountain states. Although services in general tend to be limited in this region, Allpoint’s ATM network has a little more coverage than both MoneyPass and Visa Plus Alliance in Montana, Idaho, Wyoming, Colorado, Utah and Nevada.
Who Should Join Chime?
Chime is better than Varo if:
You run on a tight budget. Chime provides overdraft protection with just $500 in monthly direct deposits compared to Varo’s $1,000-deposit requirement. It covers you up to $200 compared to Varo’s $100 and doesn’t charge a fee for the service.
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Are Chime and Varo the same?
Chime and Varo are distinct companies operating online banking apps, but they each offer similar services.
Is Varo Bank a good bank?
Varo Money is a reputable and popular banking app backed by FDIC-insured accounts through Varo Bank. The mobile bank is a good option for anyone who likes online banking and has simple banking needs that don’t require all financial services to live under one roof.
Is Varo an actual bank?
Yes, Varo Bank, N.A. received approval for a U.S. bank charter in July 2020 and is an FDIC member. Varo Bank is a wholly-owned subsidiary of the financial technology company Varo Money, Inc., which operates the Varo Money banking app.
Which bank is better: Current or Chime?
Current is an online bank account that offers many of the same features as Chime and other neo bank competitors. Current stands out for offering “savings pods,” which help you save toward specific goals, and separate accounts for teens; but it charges fees to access those unique features.
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You can sign up for either Varo or Chime by downloading their mobile apps or visiting their websites.
Neither account requires a minimum opening deposit, but you can connect an external bank account to transfer money in right away or set up direct deposit to fund your account when you get paid.
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Our Bank Review Methodology
The Penny Hoarder’s editorial team considers more than 25 factors in its bank account reviews, including fees, minimum daily balance requirements, APYs, overdraft charges, ATM access, number of physical locations, customer service support access and mobile features.
To determine how we weigh each factor, The Penny Hoarder surveyed 1,500 people to find out what banking features matter most to you.
For example, we give top grades to banks that have low fees because our survey showed that this is the No. 1 thing you look for in a bank. Because more than 70% of you said you visited a physical bank branch last year, we consider the number of brick-and-mortar locations. But more than one-third of you use mobile apps for more than 75% of your banking, so digital features are also considered carefully.
Ratings are assigned across the following categories:
Personal checking accounts
Personal savings accounts
Credit card and loan products are not currently considered.
Dana Sitar (@danasitar) has been writing and editing since 2011, covering personal finance, careers and digital media.
Compound interest is an incredibly powerful force. It allows your money to start growing on its own, with the returns exploding in value over time, if you have the patience.
While the idea is easy to understand, the actual application of it can be tricky. Does it make a difference if money is compounded monthly or quarterly? How does one teach the idea to young children? Are there any places that offer steady compound interest with a high interest rate? Let’s dig in!
In this article
Impact of bank compounding quarterly
I used to keep my savings at one bank but I didn’t like their service so I switched everything to a new bank. The new bank is great except that they only put interest in my checking account quarterly. The APR on both accounts is the same. I’m trying to figure out how much I’m losing and if it is worth it to find another bank.
It’s probably not worth it to find another bank if you like the customer service at your current bank.
Let’s say you have a large amount in savings — $100,000. Let’s also say that the bank offers 0.5 percent APR on their savings account, which is a reasonable amount in the current banking world. I’m guessing that your old bank compounded monthly, as that’s very common in banking, and your new bank compounds quarterly.
At your old bank, with monthly compounding, you would earn $501.15 in interest in a year. At your new bank, with quarterly compounding, you would earn $500.94 in interest in a year. That’s right, over the course of a year, with $100,000 in the account at 0.5 percent APR, the difference between the two is about 20 cents.
With interest rates as low as they are, different compounding rates don’t make a huge difference. However, if interest rates rebound strongly, you may want to pay attention. Let’s say that interest rates were 5 percent instead of 0.5 percent. In that case, the monthly compounded account would generate $5,116.19 in interest, whereas the quarterly compounded account would generate $5,094.53 in interest. Suddenly, you’re talking about $22, which might be enough to be concerned with.
Unless interest rates rebound a lot, I wouldn’t worry too much about the rate of compounding in your savings account. If you have a big enough balance that it’s making a large difference, there are likely better places to keep your money than a typical savings account at a local bank. Your best approach is to simply find a bank with a good interest rate and good customer service and stick with them rather than chasing a better compounding frequency.
We withdrew a bunch of rolls of pennies from the bank and put a bowl of pennies out on the table, starting with 30 or so. We told them that each day, the number of pennies in the bowl would grow by 10 percent — in other words, for every 10 pennies in the bowl, we would add one penny.
We had them guess how many pennies would be in the bowl in one month. Each night, we’d count the pennies, then we would add one penny for every 10 we counted.
Their guesses were all super low, so they were blown away by the growth of it — the bowl was literally overflowing by the end of the month, with incredibly fast growth over the last week.
Later, we offered them a very high weekly compound interest rate on their allowance money if they deposited it at the “Bank of Mom and Dad.” In other words, if they held their allowance in their hand and decided to deposit it with us, we would give them 5 percent interest each week on their savings. At first, our children were hesitant to take advantage of it, but when one of them started to save for a big goal and they saw how the savings were accelerating thanks to the power of compound interest, they all jumped on board. We actually had to put a cap on weekly interest!
The message is simple. If you want your kids to learn about compound interest, make it tangible and visual. Make it important to them. Make the rate of growth rapid, so that their patience is not overly tested. Once they see the idea, it will stick with them for life.
Are there any investments that offer a high rate of steady interest? Bank accounts are so low these days and everything else is so variable.
Unfortunately, investments that offer a very steady rate of return offer a very low rate of return these days. It’s not like it was in the late 1970s and early 1980s, when you could buy U.S. Treasurys that paid 10 percent or more. Even as recently as 2007, online bank accounts could be found that paid as much as 6 percent per year.
Before we dig too much into this, consider why banks offer interest on bank accounts in the first place. In really simple terms, they do it because they need to have a certain amount in their vaults in order to lend out money to other customers. In essence, the money in your checking or savings account ends up being the money that banks lend out to people getting mortgages and business loans.
The reason that you won’t find steady, solid interest rates much above 1 percent right now is because of the Federal Reserve. The Federal Reserve sets a number of interest rates that dictate how much banks can charge each other for temporary loans and how much the Federal Reserve charges them for emergency loans. If banks have access to money at the low interest rates that the Federal Reserve offers, they don’t have a whole lot of incentive to offer high interest rates to customers.
Think about it this way. If a bank can borrow money from another bank for 0.25 percent, why would they give you much more than that in interest on your deposits? All a bank wants is money in their vaults as inexpensively as possible so they can lend it out in the form of business loans and car loans and mortgages. If they charge a lot more than 0.25 percent, they’re probably going to lose money by doing so.
So, as long as the Federal Reserve keeps interest rates low, your bank will give you low interest rates on your savings and checking accounts. It will only go up when the Federal Reserve raises rates.
Too long, didn’t read?
As long as interest rates remain low, the rate of compounding in your savings account doesn’t make much difference.
If you want your children to understand compound interest, make it visual and tangible, and make the rate of compounding very rapid.
There aren’t any stable and secure investments that offer a steady high interest rate of compounding right now. If you want a high rate of return, you have to take on some risk and volatility.
Even if you intend to stay, your landlord could annul the lease entirely if your roommate decides to unceremoniously break the lease. However, a good landlord will likely let you attempt to survive paying the lease on your own or give you time to secure rental assistance. Even if your credit score needs work first, there’s no better time than the present to start improving your score. And you’ll find that the measures you take to improve your credit are good for your finances in general. If you’re looking for a flexible side hustle that could turn into your primary source of income, look into bookkeeping. It’s the No. 1 most profitable business, according to an article in Inc. And you can earn up to an hour, reports Intuit, the creator of QuickBooks. Thankfully, a free website called Credit Sesame will take a look at your credit report and let you know exactly what you need to do to improve your score.
1. Find Someone New
Like dating, finding someone new can do wonders for getting you back on your feet after a roommate breaks the lease. You’d probably still have a bit of a rough patch during the transition, but looking for a roommate to sublet the apartment from your previous roommate can completely resolve the problem. Ready to stop worrying about money? AmOne keeps your information confidential and secure, which is probably why after 20 years in business, it still has an A+ rating with the Better Business Bureau.
2. Get a Side Hustle Earning up to $69/Hour
You don’t have to be married to face some of the drama that comes with a messy divorce. Whether you have a roommate who’s been casually dropping hints that you should be looking for a new roommate or they’re downright spelling it out, the prospect of that person leaving can feel like you’re about to lose everything the two of you worked so hard to maintain. The benefit? You’ll be left with one bill to pay each month. And because personal loans have lower interest rates (AmOne rates start at 3.49% APR), you’ll get out of debt that much faster. Plus: No credit card payment this month. Ready to get to work? Without a roommate and the rent savings that person provided, you might lose interest in paying anything more than the monthly minimum on your credit cards. But if those credit cards bear gaudy interest rates, you might not be making the best use of your dollars.
3. Stop Paying Your Credit Card Company
You don’t have to be an accountant or good at calculus to start your own bookkeeping business, either. As long as you’re motivated, a company called Bookkeepers.com will teach you everything you need to know. It’s one of the leading training courses in the field, and it’ll even give you the first three classes for free. Along with looking for a roommate, make things easier on yourself by searching for a side hustle before your roommate makes their departure official. Even if you manage to convince them to stay, whatever factors urging them to bail in the first place could suddenly re-emerge — embarrassment could inspire them to slip away without warning. Source: thepennyhoarder.com Check out these tips for giving yourself a fighting chance of surviving a lease when a roommate gets cold feet and abandons the lease. Get the Penny Hoarder Daily
4. Have a Safety Net
While consolidating your debt can help free up room in your budget, you may not want to cut up your cards afterward — especially if your emergency savings are in critical condition. That credit line could protect you from those first few late fees, which could cascade into a stream of other fees and penalties if they hit you at the wrong time. It’s that feeling of not knowing where the other half of your rent will come from that makes it unnerving just to hear your roommate hint at leaving early. It’s a puzzle you’ll have to solve quickly to avoid giving your landlord a good reason to evict you and still charge you the balance of your remaining rent. A free website called AmOne wants to help. AmOne will match you with a low-interest loan you can use to pay off every single one of your balances.
Remember: Sharing a space with a roommate isn’t about being best friends, though it’s nice when your best friend happens to be a great person to split living costs with. It’s more important to live with someone you can coexist with and rely on. If you’ve just learned this the hard way, we apologize for any salt that accidentally dusted that wound.