<?xml version="1.0" encoding="utf-8"?> <rss version="2.0" xmlns:atom="http://www.w3.org/2005/Atom" xmlns:content="http://purl.org/rss/1.0/modules/content/" xmlns:media="http://search.yahoo.com/mrss/"><channel><title>Motley Fool Money Articles</title><link>https://www.fool.com/</link><description>The Motley Fool provides leading insight and analysis about stocks, helping investors stay informed.</description><atom:link href="https://www.fool.com/a/feeds/partner/motley-fool-money?apikey=246a20f9-243e-4bb6-b9aa-550a2532ab1e" rel="self"/><language>en-us</language><copyright>Copyright 1995-2025 The Motley Fool. All rights reserved.</copyright><lastBuildDate>Fri, 21 Feb 2025 07:00:19 -0500</lastBuildDate><image><url>https://g.foolcdn.com/assets/images/fool/tmf-logo.png</url><title>Motley Fool Money Articles</title><link>https://www.fool.com/</link><width>144</width><height>34</height></image><item><title>Have Lots of Money in Your Checking Account? Here Are 3 Better Places to Keep Your Cash</title><link>https://www.fool.com/money/banks/articles/have-lots-of-money-in-your-checking-account-here-are-3-better-places-to-keep-your-cash/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A pile of money with a seedling growing out of it" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FJester-money-001_Svywi4o.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: The Motley Fool/Upsplash&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="b9vqu"&gt;Most people only need enough cash in a checking account to cover a month's worth of spending, plus a little extra to make sure they avoid overdrafts.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=6064df48-6858-47e5-8abb-2a08d37d6875&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=6064df48-6858-47e5-8abb-2a08d37d6875&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="3e4pg"&gt;Beyond that, keeping more cash in your checking account could cost you a lot of money, because checking accounts earn little to no interest.&lt;/p&gt;&lt;p data-block-key="1ou4s"&gt;Here are three alternatives that could earn you way more money in the long run.&lt;/p&gt;&lt;h2 data-block-key="lmcv5" id="1.-a-high-yield-savings-account"&gt;1. A high-yield savings account&lt;/h2&gt;&lt;p data-block-key="1rc3s"&gt;Today's &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" target="_blank"&gt;best high-yield savings accounts&lt;/a&gt; (HYSAs) have annual percentage yields (APYs) around 4.00% or more. Most checking accounts pay less than 1.00%, and many pay no interest at all.&lt;/p&gt;&lt;p data-block-key="bfre5"&gt;If your current bank doesn't offer an HYSA, then open an account with a bank that does. Next, open a checking account with the same bank, and you'll be able to make instant transfers between your checking and savings. That means if your checking account is ever running a bit low, you can transfer money from your savings account and spend it right away.&lt;/p&gt;&lt;p data-block-key="brsco"&gt;As an example, let's say you have an extra $3,000 sitting in a checking account with a 0.20% APY. If you moved that money to an HYSA paying 4.00%, you'd &lt;b&gt;earn $620 more in interest&lt;/b&gt; after five years.&lt;/p&gt;&lt;h2 data-block-key="aadsz" id="2.-an-ira"&gt;2. An IRA&lt;/h2&gt;&lt;p data-block-key="d30lc"&gt;Once you have enough money in savings, it's time to invest for the future. And one of the best ways to do that is through an &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" target="_blank"&gt;individual retirement account (IRA)&lt;/a&gt;.&lt;/p&gt;&lt;p data-block-key="9vfe4"&gt;IRAs offer huge tax savings, so long as you leave your money in the account until you're 59 1/2 or older. Your contributions can be deducted from your taxable income, and your investments won't be hit with capital gains tax or dividend tax. Those tax breaks can add up to &lt;b&gt;tens of thousands of dollars&lt;/b&gt;.&lt;/p&gt;&lt;p data-block-key="5rnm2"&gt;Opening an IRA is easy -- you can do it in minutes through almost any &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" target="_blank"&gt;stock broker&lt;/a&gt;. But then you'll need to choose and purchase investments yourself.&lt;/p&gt;&lt;p data-block-key="7tksp"&gt;If you're unsure where to start, consider an S&amp;P 500 index fund. These funds have low fees, and they track the performance of the S&amp;P 500 Index -- a group of 500 of the biggest companies in the U.S. Since 1957, this index has gained an average of 10% per year.&lt;/p&gt;&lt;p data-block-key="dv1fr"&gt;Again, let's assume you have an extra $3,000 in a checking account earning 0.20%. If you put that money in an IRA, invested it in an S&amp;P 500 index fund, and earned a return of 10% per year, you'd be $&lt;b&gt;1,800 richer&lt;/b&gt; in five years.&lt;/p&gt;&lt;h2 data-block-key="eczfk" id="3.-a-taxable-brokerage-account"&gt;3. A taxable brokerage account&lt;/h2&gt;&lt;p data-block-key="dq2eo"&gt;A "taxable brokerage account" is just a regular brokerage account -- without the tax benefits of an IRA.&lt;/p&gt;&lt;p data-block-key="ebotm"&gt;Why open a taxable brokerage account at all if IRAs are so much better? Because IRAs have a contribution limit of $7,000 per year (or $8,000 per year for those aged 50 or older).&lt;/p&gt;&lt;p data-block-key="66em6"&gt;So if you're able to invest more than that each year, then a regular brokerage account is one of your best options after your IRA is maxed out. You won't get all those sweet tax breaks, but you'll still be able to invest in high-growth assets like index funds, stocks, bonds, and more.&lt;/p&gt;&lt;p data-block-key="fb4bm"&gt;You could even open an IRA and a taxable brokerage account with the same broker. That way you can see and manage all your investments in one place.&lt;/p&gt;&lt;p data-block-key="f2c5a"&gt;&lt;i&gt;Ready to get in on the stock market's returns?&lt;/i&gt; &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best stock brokers, open a new account, and start investing in stocks today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="5iof9" id="don't-let-your-money-sit-idle"&gt;Don't let your money sit idle&lt;/h2&gt;&lt;p data-block-key="5fobh"&gt;&lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" target="_blank"&gt;Checking accounts&lt;/a&gt; are necessary for almost everyone. They give you the quickest access to your cash so you can pay the bills and any surprise purchases that might come up on short notice.&lt;/p&gt;&lt;p data-block-key="7vs9u"&gt;However, any money that you won't need for the next month or more could be earning you more money if you put it somewhere else. Think big, think long term, and don't rob your future self of money by letting extra cash sit in a checking account.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=74387d88-8999-4e1a-883c-c007d038e348&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=74387d88-8999-4e1a-883c-c007d038e348&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 21 Feb 2025 07:00:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/have-lots-of-money-in-your-checking-account-here-are-3-better-places-to-keep-your-cash/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=266f3b07-fcc9-4c17-a03d-e88b398b2a27</guid><category domain="https://www.fool.com/guid">266f3b07-fcc9-4c17-a03d-e88b398b2a27</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Here's Why the Average American Should Have $19,800 or More in Savings</title><link>https://www.fool.com/money/banks/articles/heres-why-the-average-american-should-have-19800-or-more-in-savings/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A couple counts the bills and coins they've saved in a jar." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-103919680_fTSAXB7_tma92y4.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="52hkg"&gt;Most Americans don't have a ton of money in the bank. As of 2022, American families had a median of $8,000 in "transaction accounts" (checking, savings, and similar accounts), according to the Federal Reserve.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=7f3c1d8e-5dc5-4cde-b5f3-2ffbee4bad9b&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=7f3c1d8e-5dc5-4cde-b5f3-2ffbee4bad9b&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="8je05"&gt;That doesn't mean they're all struggling financially. However, data shows that it's a good idea to aim to have $19,800 or more tucked away in a savings account. Here's why.&lt;/p&gt;&lt;h2 data-block-key="bcdmj" id="you-might-need-dollar20000-or-more-in-an-emergency"&gt;You might need $20,000 or more in an emergency&lt;/h2&gt;&lt;p data-block-key="9sqq5"&gt;Everyone should aim to have an emergency fund that they keep in a &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072" target="_blank"&gt;high-yield savings account&lt;/a&gt; where it's easily accessible. This is a rainy-day fund that can cover unexpected expenses or a period of unemployment. Ideally, this account will have at least enough money to cover three months' worth of expenses.&lt;/p&gt;&lt;p data-block-key="bbvdn"&gt;The average American household spent $6,440 per month in 2023, according to the Bureau of Labor Statistics. Given that prices rose 2.9% last year, the average monthly spending is likely closer to $6,600 now.&lt;/p&gt;&lt;p data-block-key="ahoef"&gt;That means the average American family should aim to keep $19,800 or more in savings.&lt;/p&gt;&lt;p data-block-key="fkp47"&gt;&lt;i&gt;You could earn 10 times the national average APY with a high-yield savings account.&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and start earning more interest today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h3 data-block-key="za52n" id="why-three-months'-worth-of-expenses"&gt;Why three months' worth of expenses?&lt;/h3&gt;&lt;p data-block-key="ct499"&gt;Keeping three months' worth of spending in a savings account is common advice for good reason. First, if you lose your job, your emergency fund can keep you afloat while you get back on your feet.&lt;/p&gt;&lt;p data-block-key="3si96"&gt;Here are just some of the big expenses that might catch you by surprise:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="99g6i"&gt;A medical emergency&lt;/li&gt;&lt;li data-block-key="19lv1"&gt;Car repairs&lt;/li&gt;&lt;li data-block-key="a7kk4"&gt;HVAC, plumbing, and roof repairs&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="5cl7t"&gt;These kinds of things can cost you five figures. If you don't have the cash to pay for a surprise expense, then you may end up in debt. And if you have to use a credit card (likely with a 20%-plus interest rate), then it may take you months or years to pay it off. In the long term, that can be a huge financial setback.&lt;/p&gt;&lt;p data-block-key="a1lps"&gt;&lt;i&gt;If you're forced to rely on a credit card in an emergency, a card with a 0% intro APR can help.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-zero-interest-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best 0% intro APR credit cards now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="pi2q1" id="how-to-build-your-emergency-savings"&gt;How to build your emergency savings&lt;/h2&gt;&lt;p data-block-key="7h645"&gt;If you don't have enough money &lt;a href="https://www.fool.com/money/banks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072" target="_blank"&gt;in the bank&lt;/a&gt;, don't panic -- you're far from being alone. And you might be surprised by how fast you can grow your savings by taking small steps now.&lt;/p&gt;&lt;p data-block-key="70vsk"&gt;Start by combing through your bank and credit card statements and looking for any expense you can cut. Once you've dropped those expenses, take the amount of money you're saving and have it automatically deposited into a savings account. You can either change your direct deposit at work or set up automatic transfers from a checking account.&lt;/p&gt;&lt;p data-block-key="9pbcj"&gt;If you saved an extra &lt;b&gt;$100 a month&lt;/b&gt; and put it in a high-yield savings account with an APY of 4.00%, then you'd have &lt;b&gt;$6,618&lt;/b&gt; more in the bank after five years and &lt;b&gt;$14,670&lt;/b&gt; after 10 years.&lt;/p&gt;&lt;p data-block-key="dbb8s"&gt;Increasing your income can make an even bigger difference. We can only cut our expenses so much, but there's no hard limit on how much we can earn. A side hustle or a small raise may not make you rich, but don't underestimate how big of an impact it could make.&lt;/p&gt;&lt;p data-block-key="2dmo"&gt;If you earned an extra &lt;b&gt;$300 a month&lt;/b&gt; and put it in a 4.00% APY savings account, you'd have an additional &lt;b&gt;$19,854 in five years&lt;/b&gt;.&lt;/p&gt;&lt;h2 data-block-key="sghli" id="not-everyone-needs-dollar20000-in-the-bank"&gt;Not everyone needs $20,000 in the bank&lt;/h2&gt;&lt;p data-block-key="88mi4"&gt;$20,000 is not a one-size-fits-all number. Everyone's financial situation is different. If you're happily getting by on less money than the average American, then you probably don't need that much money stashed away.&lt;/p&gt;&lt;p data-block-key="ajpjr"&gt;But others may want to set aside even more than $20,000. For example, if you have health issues, if you own a home, or if your income is unpredictable, then you may need a bigger safety net than most.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=aeed4971-e4f0-4abd-88e8-815c877dd0db&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=aeed4971-e4f0-4abd-88e8-815c877dd0db&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 21 Feb 2025 06:00:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-why-the-average-american-should-have-19800-or-more-in-savings/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=e4cd7200-76c7-477f-818b-b452cd787072</guid><category domain="https://www.fool.com/guid">e4cd7200-76c7-477f-818b-b452cd787072</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Here's How You Could Save $1,000 or More in Credit Card Interest</title><link>https://www.fool.com/money/credit-cards/articles/heres-how-you-could-save-1000-or-more-in-credit-card-interest/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A hand holding a wallet" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2F26_nbmGrwn.width-793.png%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: The Motley Fool/Upsplash&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="7ofko"&gt;The average American had $6,730 in &lt;a href="https://www.fool.com/money/credit-cards/best-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" target="_blank"&gt;credit card&lt;/a&gt; debt in 2024, according to Experian. That's a huge drain on our finances, given the high interest rates charged by credit card companies.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=723d53d7-8c0b-4fc9-a6fd-4f96b731c219&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=723d53d7-8c0b-4fc9-a6fd-4f96b731c219&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="citm2"&gt;Americans pay over $100 billion a year in credit card interest and fees -- mostly because we don't all pay our full balance each month.&lt;/p&gt;&lt;p data-block-key="brcj2"&gt;If you're struggling with credit card debt, then a &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" target="_blank"&gt;balance transfer card&lt;/a&gt; could help you pay it off faster &lt;i&gt;and&lt;/i&gt; save you a lot of money. Most require a good credit score (670 or higher), however.&lt;/p&gt;&lt;p data-block-key="5hid0"&gt;Let's go over how balance transfer cards work, as well as some alternatives for people who don't qualify for one.&lt;/p&gt;&lt;h2 data-block-key="qzdy2" id="how-balance-transfer-cards-work"&gt;How balance transfer cards work&lt;/h2&gt;&lt;p data-block-key="e1cjg"&gt;A balance transfer card allows you to move other credit card balances to the balance transfer card. So you owe the same amount; you just owe it to your new card issuer.&lt;/p&gt;&lt;p data-block-key="8ml0"&gt;The difference is that balance transfer cards offer a 0% intro APR for a fixed period, usually 12 to 21 months. So, during that time, you won't rack up any new interest charges.&lt;/p&gt;&lt;p data-block-key="nap"&gt;You'll pay a fee -- usually 3% to 5% of the transferred amount -- when you transfer your outstanding balance to the new card. And once the 0% APR period ends, you'll pay a more typical credit card APR (likely over 20%) on any remaining balance.&lt;/p&gt;&lt;p data-block-key="fhher"&gt;As an example, let's say:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="9b9ae"&gt;You have a credit card balance of $6,730 (the national average)&lt;/li&gt;&lt;li data-block-key="eks7n"&gt;Your APR is 21%&lt;/li&gt;&lt;li data-block-key="9rdft"&gt;You're paying $400 per month toward your credit card bill&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="759l2"&gt;If you made no new purchases on your credit card, it would take you &lt;b&gt;20 months&lt;/b&gt; to pay it off, and you'd pay a total of &lt;b&gt;$1,311.52 in interest&lt;/b&gt;.&lt;/p&gt;&lt;p data-block-key="efos2"&gt;Now let's say you transferred that balance to a card, and:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="5t403"&gt;The transfer fee is 3%&lt;/li&gt;&lt;li data-block-key="bl9kk"&gt;The 0% APR period is 18 months&lt;/li&gt;&lt;li data-block-key="d3sju"&gt;You continue making payments of $400 a month and &lt;i&gt;not&lt;/i&gt; making new purchases&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="4445u"&gt;Your transfer fee would be $201.90, and you'd pay off your full balance in &lt;b&gt;18 months&lt;/b&gt; and pay &lt;b&gt;$0 in interest&lt;/b&gt;. Altogether, you'd &lt;b&gt;save $1,109.62&lt;/b&gt;.&lt;/p&gt;&lt;p data-block-key="bbuai"&gt;Keep in mind that this strategy won't work if you keep spending on the new card. When the 0% APR period ends, you don't want to be stuck paying off high-interest debt again.&lt;/p&gt;&lt;p data-block-key="cnk5m"&gt;&lt;i&gt;You might qualify for 0% APR for up to 21 months.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best balance transfer cards to find out.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="cwai1" id="what-if-you-have-bad-credit"&gt;What if you have bad credit?&lt;/h2&gt;&lt;p data-block-key="94tap"&gt;There are some credit cards that allow people with sub-670 credit scores to transfer balances. But they don't offer generous terms like 0% APR for a year or more.&lt;/p&gt;&lt;p data-block-key="539ak"&gt;That said, you may qualify for a &lt;a href="https://www.fool.com/money/credit-cards/guides-tools/secured-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" target="_blank"&gt;secured credit card&lt;/a&gt; that offers a lower intro APR for a shorter period, like six months. You'll have to pay a deposit in addition to the balance transfer fee, but you could still save a lot of money if you stay disciplined with your spending.&lt;/p&gt;&lt;p data-block-key="a6vpq"&gt;And it doesn't hurt to &lt;b&gt;see if you prequalify&lt;/b&gt; for a balance transfer card. Prequalification does &lt;i&gt;not&lt;/i&gt; guarantee that your credit card application will be approved. However, it gives you an idea, and it does not include a hard credit inquiry, so there's no negative effect on your credit score.&lt;/p&gt;&lt;p data-block-key="5bfch"&gt;Another option is a &lt;b&gt;debt consolidation loan&lt;/b&gt;. This is a &lt;a href="https://www.fool.com/money/personal-loans/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" target="_blank"&gt;personal loan&lt;/a&gt; that pays off other debts, so you only have to repay your new lender -- ideally at a lower interest rate. The rate you're offered depends partly on your credit score, so you may not get a low rate if your credit is poor. However, the APR may be lower than your credit card's, so it's worth shopping around.&lt;/p&gt;&lt;p data-block-key="83u2c"&gt;Otherwise, you'll need to pay off your credit card debt the old-fashioned way: by cutting your spending and putting as much income as possible toward your credit card bills. Look for a &lt;b&gt;nonprofit credit counseling service&lt;/b&gt;. You may be able to get free, personalized advice on how to pay off your debt ASAP.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=5cc3aa67-fb59-4edd-b382-3b061564e3ae&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=5cc3aa67-fb59-4edd-b382-3b061564e3ae&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 18 Feb 2025 05:30:18 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/heres-how-you-could-save-1000-or-more-in-credit-card-interest/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=83b00ffe-ca9e-4342-b2d7-5619151abb0b</guid><category domain="https://www.fool.com/guid">83b00ffe-ca9e-4342-b2d7-5619151abb0b</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>This Is How Much Money You Can Make With $30K in a High-Yield Savings Account</title><link>https://www.fool.com/money/banks/articles/this-is-how-much-money-you-can-make-with-30k-in-high-yield-savings-account/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=720b4204-7995-4f73-bb3b-ad17bc80b9e3</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A glass jar full of bills and coins" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FJester-money-002_1K3FFgk.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: The Motley Fool/Upsplash&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="idg0e"&gt;If you have $30,000 to save, putting it in a high-yield savings account (HYSA) can be a smart move. Right now, many HYSAs offer around &lt;b&gt;4.00% APY&lt;/b&gt;. But how much money will that actually make you?&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d4157438-b2ef-4e5a-8be2-eff7d7567cdd&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=720b4204-7995-4f73-bb3b-ad17bc80b9e3" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d4157438-b2ef-4e5a-8be2-eff7d7567cdd&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=720b4204-7995-4f73-bb3b-ad17bc80b9e3" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="38coi"&gt;Let's break it down.&lt;/p&gt;&lt;h2 data-block-key="tuk1h" id="how-much-will-you-earn-over-time"&gt;How much will you earn over time?&lt;/h2&gt;&lt;p data-block-key="fm2h7"&gt;Your savings grow with compound interest, which means you'll earn interest on your initial deposit &lt;i&gt;and&lt;/i&gt; your earnings. Here's how much a $30,000 deposit would earn with an APY of 4.00% if left untouched:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="89lis"&gt;&lt;b&gt;1 year:&lt;/b&gt; $1,200 in interest&lt;/li&gt;&lt;li data-block-key="9mngd"&gt;&lt;b&gt;5 years:&lt;/b&gt; $6,500 in interest&lt;/li&gt;&lt;li data-block-key="6tqom"&gt;&lt;b&gt;10 years:&lt;/b&gt; $14,407 in interest&lt;/li&gt;&lt;li data-block-key="bslh1"&gt;&lt;b&gt;20 years:&lt;/b&gt; $35,734 in interest&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="1j6gi"&gt;Your money would &lt;b&gt;more than double&lt;/b&gt; to $65,734 after 20 years, and all you'd need to do is let it sit safely in the account.&lt;/p&gt;&lt;p data-block-key="1t99t"&gt;Granted, savings account APYs can change at any time. You may earn a return of more or less than 4% over the years. Still, you can see the power of compound interest at work.&lt;/p&gt;&lt;p data-block-key="3hq3m"&gt;&lt;i&gt;Want to earn 10 times the national average APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=720b4204-7995-4f73-bb3b-ad17bc80b9e3" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts, and you could open a new account in minutes.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="k37a8" id="is-a-high-yield-savings-account-the-best-place-for-your-money"&gt;Is a high-yield savings account the best place for your money?&lt;/h2&gt;&lt;p data-block-key="1sd8i"&gt;A high-yield savings account is great for &lt;b&gt;short-term savings&lt;/b&gt; and emergency funds. They keep your deposits safe and FDIC insured, and you can withdraw funds at any time.&lt;/p&gt;&lt;p data-block-key="5dki4"&gt;Beyond that, however, you may want to look to other options with higher potential returns.&lt;/p&gt;&lt;h3 data-block-key="dzse9" id="treasury-bonds"&gt;Treasury bonds&lt;/h3&gt;&lt;p data-block-key="f9g0m"&gt;Treasury bonds are government-backed and safe, and they offer high yields for those who can commit their money for a long time. The most recent interest rate on &lt;b&gt;20-year Treasury bonds&lt;/b&gt; was 4.625%. At that rate, a $30,000 investment would earn &lt;b&gt;$44,102&lt;/b&gt; in interest over two decades.&lt;/p&gt;&lt;h3 data-block-key="hmmma" id="the-stock-market"&gt;The stock market&lt;/h3&gt;&lt;p data-block-key="8vm33"&gt;The stock market has historically returned an average of 10% per year (before inflation), as measured by the S&amp;P 500 Index. Even if the market doesn't perform that well over the next 20 years, you could earn returns far higher than the APY of any savings account.&lt;/p&gt;&lt;p data-block-key="68fs8"&gt;If you opened a &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=720b4204-7995-4f73-bb3b-ad17bc80b9e3" target="_blank"&gt;brokerage account&lt;/a&gt; and invested $30,000 in an S&amp;P 500 index fund that gained an average of 7% per year, here's what you would earn:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="euo1u"&gt;&lt;b&gt;1 year:&lt;/b&gt; $2,100&lt;/li&gt;&lt;li data-block-key="6c9mn"&gt;&lt;b&gt;5 years:&lt;/b&gt; $12,077&lt;/li&gt;&lt;li data-block-key="5tk59"&gt;&lt;b&gt;10 years:&lt;/b&gt; $29,015&lt;/li&gt;&lt;li data-block-key="bqcsh"&gt;&lt;b&gt;20 years:&lt;/b&gt; $86,091&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="erpci"&gt;That means your portfolio would be worth &lt;b&gt;$116,091&lt;/b&gt; in 20 years.&lt;/p&gt;&lt;p data-block-key="1bu10"&gt;Stocks can be volatile, and short-term losses are guaranteed to happen sometimes. However, long-term investing has historically outperformed savings accounts. For big, long-term goals like retirement, investing in the stock market gives you the best chance of building wealth.&lt;/p&gt;&lt;h2 data-block-key="svkr2" id="which-option-is-best-for-you"&gt;Which option is best for you?&lt;/h2&gt;&lt;p data-block-key="fr443"&gt;A high-yield savings account is a great place to grow your money safely. With a 4.00% APY, you can earn thousands over time without risk.&lt;/p&gt;&lt;p data-block-key="6b0kl"&gt;However, if you're saving for the long haul, consider investing in stocks or bonds. Choosing the right option depends on your goals, risk tolerance, and timeline.&lt;/p&gt;&lt;p data-block-key="2shll"&gt;Whatever you decide, the most important step is to start saving and investing as early as possible.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=192af04b-e282-4354-b137-782e37468c19&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=720b4204-7995-4f73-bb3b-ad17bc80b9e3" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=192af04b-e282-4354-b137-782e37468c19&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=720b4204-7995-4f73-bb3b-ad17bc80b9e3" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 17 Feb 2025 06:30:18 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/this-is-how-much-money-you-can-make-with-30k-in-high-yield-savings-account/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=720b4204-7995-4f73-bb3b-ad17bc80b9e3</guid><category domain="https://www.fool.com/guid">720b4204-7995-4f73-bb3b-ad17bc80b9e3</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Should You Ever Break an Old CD Contract?</title><link>https://www.fool.com/money/banks/articles/should-you-ever-break-an-old-cd-contract/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Man sits at laptop and appears to be in thought." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FMan_sits_at_laptop_and_appears_to_be_in_though.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="de2dg"&gt;One of the downsides of &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b" target="_blank"&gt;certificates of deposit (CDs)&lt;/a&gt; is that you lose access to your money for the length of your CD contract. That's the tradeoff for earning a guaranteed return.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=1d785e64-61e2-4036-acdb-365ff0723189&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=1d785e64-61e2-4036-acdb-365ff0723189&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="cuc59"&gt;That means interest rates can rise, and your cash is stuck earning a lower rate. But breaking a CD contract often comes with penalties, and in some cases, it might not be worth the cost. Here are three things to consider before deciding if breaking an old CD makes sense for you.&lt;/p&gt;&lt;h2 data-block-key="n9oxl" id="1.-check-the-early-withdrawal-penalty"&gt;1. Check the early withdrawal penalty&lt;/h2&gt;&lt;p data-block-key="7tmob"&gt;CDs are designed to hold your money for a fixed period, and banks charge a penalty if you withdraw early. These penalties vary but typically follow this structure:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="bd18t"&gt;&lt;b&gt;Short-term CDs (6-12 months):&lt;/b&gt; Usually charge three months of interest.&lt;/li&gt;&lt;li data-block-key="876g4"&gt;&lt;b&gt;Medium-term CDs (1-3 years):&lt;/b&gt; Often charge six months of interest.&lt;/li&gt;&lt;li data-block-key="6rk9a"&gt;&lt;b&gt;Long-term CDs (4 years or longer):&lt;/b&gt; Could cost a full year's worth of interest.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="43dh5"&gt;Before cashing out your CD early, check your bank's specific penalty and calculate how much interest you'll lose. If the penalty wipes out all or most of your earnings, it might not be worth it.&lt;/p&gt;&lt;p data-block-key="94tnr"&gt;&lt;i&gt;Earn a similar rate to CDs and access your money whenever you need it.&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;i&gt;.&lt;/i&gt;&lt;/p&gt;&lt;h2 data-block-key="nhzh9" id="2.-consider-no-penalty-cds"&gt;2. Consider no-penalty CDs&lt;/h2&gt;&lt;p data-block-key="2qp3j"&gt;If you think interest rates might keep rising but don't want to get stuck in another long-term contract, consider a no-penalty CD. These accounts let you withdraw your money early without a fee, giving you flexibility if rates continue to climb.&lt;/p&gt;&lt;p data-block-key="fh89f"&gt;The trade-off? No-penalty CDs often have slightly lower interest rates than traditional CDs. But if flexibility is your priority, they can be a great alternative.&lt;/p&gt;&lt;h2 data-block-key="wzrtd" id="3.-look-at-other-high-yield-options"&gt;3. Look at other high-yield options&lt;/h2&gt;&lt;p data-block-key="7sdle"&gt;CDs aren't your only choice for earning interest. High-yield savings and &lt;a href="https://www.fool.com/money/banks/money-market-accounts/best-money-market-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b" target="_blank"&gt;money market accounts&lt;/a&gt; currently offer rates similar to CDs, but with more flexibility. You can earn a great return on your cash while being able to access it whenever you need. Emergencies happen, and you won't need to stress if you have to dip into savings.&lt;/p&gt;&lt;h2 data-block-key="e11e9" id="breaking-a-cd-contract-is-generally-a-bad-idea"&gt;Breaking a CD contract is generally a bad idea&lt;/h2&gt;&lt;p data-block-key="1a99"&gt;Breaking an old CD contract can make sense if the numbers work in your favor, but that's hard to find. Check your penalty, compare interest rates, and consider a high-yield savings account before making a decision. If you stand to gain significantly in the long run, making the switch could be a smart move.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=1a4fbf22-0db6-4bda-9b54-8dcd9717d11f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=1a4fbf22-0db6-4bda-9b54-8dcd9717d11f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 17 Feb 2025 06:00:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/should-you-ever-break-an-old-cd-contract/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=ce48346a-b3d5-4a49-afa3-b43a681a7d1b</guid><category domain="https://www.fool.com/guid">ce48346a-b3d5-4a49-afa3-b43a681a7d1b</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>This Strategy Can Help You Get Out of Credit Card Debt Without Paying Interest</title><link>https://www.fool.com/money/credit-cards/articles/this-strategy-can-help-you-get-out-of-credit-card-debt-without-paying-interest/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A woman sitting on her couch at home making a phone call while holding a credit card with a laptop open in front of her." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fwoman_on_phone_with_credit_card_and_laptop_6yv.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="g0wno"&gt;If you're struggling with credit card debt, you're not alone. With sky-high interest rates, paying off your balance can feel like a never-ending battle. But what if you could hit pause on interest and make real progress toward becoming debt free?&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=7f36d253-8c70-48e1-ae7f-9a2289093774&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=7f36d253-8c70-48e1-ae7f-9a2289093774&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="4mo8p"&gt;That's exactly what the &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e" target="_blank"&gt;best balance transfer credit cards&lt;/a&gt; can do. By moving your existing credit card debt to a new card with a 0% introductory APR, you can focus on paying off what you owe without interest slowing you down.&lt;/p&gt;&lt;h2 data-block-key="nqt8a" id="how-a-balance-transfer-card-works"&gt;How a balance transfer card works&lt;/h2&gt;&lt;p data-block-key="4ng21"&gt;A balance transfer credit card allows you to shift your existing credit card debt onto a new card with a temporary 0% interest rate -- often for periods of 12 to 21 months. That means every dollar you pay goes directly toward your debt, not toward interest charges.&lt;/p&gt;&lt;p data-block-key="do64u"&gt;Here's how to use one of these cards effectively:&lt;/p&gt;&lt;ol&gt;&lt;li data-block-key="6auht"&gt;&lt;b&gt;Find the right card:&lt;/b&gt; Look for a balance transfer card with a long 0% APR period and low (or no) transfer fees.&lt;/li&gt;&lt;li data-block-key="2gjjl"&gt;&lt;b&gt;Transfer your debt:&lt;/b&gt; Move your balance from your high-interest credit card to the new one.&lt;/li&gt;&lt;li data-block-key="7s2mm"&gt;&lt;b&gt;Pay aggressively:&lt;/b&gt; Divide your total balance by the number of interest-free months and aim to pay that amount each month.&lt;/li&gt;&lt;li data-block-key="d4k9e"&gt;&lt;b&gt;Stay disciplined:&lt;/b&gt; Avoid making new purchases on the card. Your goal is to pay off your balance before the 0% period ends.&lt;/li&gt;&lt;/ol&gt;&lt;p data-block-key="6aakk"&gt;&lt;i&gt;Start getting out of debt today.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best balance transfer credit cards to potentially save thousands of dollars in interest payments&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h3 data-block-key="sj3h7" id="why-it-works-so-well"&gt;Why it works so well&lt;/h3&gt;&lt;p data-block-key="uqor"&gt;The average credit card interest rate is currently 24.21%, making it tough to chip away at your balance. But with a balance transfer card, you can:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="5hkt1"&gt;&lt;b&gt;Pay off debt faster:&lt;/b&gt; Every payment goes toward your balance, not interest.&lt;/li&gt;&lt;li data-block-key="bt4o9"&gt;&lt;b&gt;Save hundreds (or thousands) in interest:&lt;/b&gt; Even a few months of 0% interest can make a huge difference.&lt;/li&gt;&lt;li data-block-key="7vd6l"&gt;&lt;b&gt;Simplify your payments:&lt;/b&gt; Moving multiple balances onto one card can make managing your debt easier.&lt;/li&gt;&lt;/ul&gt;&lt;h3 data-block-key="e947t" id="what-to-watch-out-for"&gt;What to watch out for&lt;/h3&gt;&lt;p data-block-key="9fb4"&gt;While balance transfer cards can be a game-changer, there are a few things to keep in mind:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="75ini"&gt;&lt;b&gt;Balance transfer fees:&lt;/b&gt; Some cards charge a 3%-5% fee on the amount you transfer. Make sure the savings outweigh the cost.&lt;/li&gt;&lt;li data-block-key="2u67i"&gt;&lt;b&gt;The 0% period is temporary:&lt;/b&gt; Once it expires, a regular APR kicks in. Aim to pay off your balance before that happens.&lt;/li&gt;&lt;li data-block-key="4t3ng"&gt;&lt;b&gt;New purchases may accrue interest:&lt;/b&gt; Some cards only offer 0% APR on balance transfers, not new spending.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="ywsud" id="is-a-balance-transfer-card-right-for-you"&gt;Is a balance transfer card right for you?&lt;/h2&gt;&lt;p data-block-key="eqe25"&gt;If you have high-interest credit card debt and a good credit score (typically 670 or higher), a balance transfer card is one of the smartest ways to get out of debt faster and cheaper.&lt;/p&gt;&lt;p data-block-key="cgb5"&gt;But the key is using it wisely. Don't treat a new line of credit as an excuse to spend more. If you stick to your payoff plan, you could be debt free by the time your &lt;a href="https://www.fool.com/money/credit-cards/best-zero-interest-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e" target="_blank"&gt;0% introductory APR&lt;/a&gt; period ends.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=110f1fbd-a2c3-4670-822c-cc37a8afcf11&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=110f1fbd-a2c3-4670-822c-cc37a8afcf11&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 17 Feb 2025 05:30:35 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/this-strategy-can-help-you-get-out-of-credit-card-debt-without-paying-interest/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=24751429-4131-4252-84ce-42dd9b987c3e</guid><category domain="https://www.fool.com/guid">24751429-4131-4252-84ce-42dd9b987c3e</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's How to Get Out of Credit Card Debt</title><link>https://www.fool.com/money/credit-cards/articles/heres-how-to-get-out-of-credit-card-debt/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A couple sit on the floor in a room with no furniture surrounded by paperwork and bills." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-964129720_gzUxux8.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="gg3xf"&gt;Credit card debt can feel overwhelming, especially when high interest rates keep making the balance grow. The good news is you can take control of your debt and pay it off faster with the right strategies. Here are some of the best ways to get out of credit card debt and take back your financial freedom.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a134b1fd-5101-4304-9a5b-e53ef77cecbb&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a134b1fd-5101-4304-9a5b-e53ef77cecbb&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;h2 data-block-key="jdomz" id="1.-use-a-balance-transfer-credit-card"&gt;1. Use a balance transfer credit card&lt;/h2&gt;&lt;p data-block-key="e77s1"&gt;The &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933" target="_blank"&gt;best balance transfer credit cards&lt;/a&gt; can help you get rid of debt faster by reducing or eliminating interest payments. Many of these cards offer 0% APR for up to 21 months, giving you a window to pay off your balance without interest piling up.&lt;/p&gt;&lt;p data-block-key="73otg"&gt;Here's how it works:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="1ub31"&gt;Apply for a balance transfer card with a 0% introductory APR.&lt;/li&gt;&lt;li data-block-key="eqp4t"&gt;Move your existing credit card debt to the new card.&lt;/li&gt;&lt;li data-block-key="dkn1k"&gt;Pay down the balance as much as possible during the interest-free period.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="f5eo1"&gt;Keep in mind that many balance transfer cards charge a fee of 3% to 5% of the debt transferred, so make sure the savings outweigh the cost before you apply. Also, avoid making new purchases on the card -- your goal is to pay off debt, not add to it.&lt;/p&gt;&lt;h2 data-block-key="ewhty" id="2.-tackle-it-with-the-snowball-or-avalanche-method"&gt;2. Tackle it with the snowball or avalanche method&lt;/h2&gt;&lt;p data-block-key="2ervt"&gt;If you have multiple &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933" target="_blank"&gt;credit cards&lt;/a&gt; with an outstanding balance, you'll need a strategy to pay them off efficiently. Two of the most popular methods are:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="5ufae"&gt;&lt;b&gt;The snowball method:&lt;/b&gt; Pay off the smallest balance first while making minimum payments on the others. Once the first card is paid off, move on to the next smallest. This builds momentum and keeps you motivated. Staying motivated can be the hardest part of tackling debt, and seeing some debts completely disappear as you go helps keep morale high.&lt;/li&gt;&lt;li data-block-key="36saq"&gt;&lt;b&gt;The avalanche method:&lt;/b&gt; Focus on paying off the card with the highest interest rate first. This method saves you the most money in interest over time.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="calq9"&gt;Both strategies work, so choose the one that keeps you motivated to stick with your plan.&lt;/p&gt;&lt;p data-block-key="ct706"&gt;&lt;i&gt;Get out of debt faster.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-zero-interest-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best 0% intro APR credit cards to find out today if you can get up to 21 months of 0% interest on your debt&lt;/i&gt;&lt;/b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="aw2ii" id="3.-cut-unnecessary-spending"&gt;3. Cut unnecessary spending&lt;/h2&gt;&lt;p data-block-key="7imrl"&gt;If you're serious about getting out of debt, take a hard look at your expenses. Small cuts can add up quickly:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="54p1c"&gt;Cancel unused subscriptions.&lt;/li&gt;&lt;li data-block-key="161ik"&gt;Eat at home instead of dining out.&lt;/li&gt;&lt;li data-block-key="9o9vp"&gt;Look for free or low-cost entertainment.&lt;/li&gt;&lt;li data-block-key="6vvbj"&gt;Reduce impulse spending by using a 24-hour rule before buying anything non-essential.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="ebhi6"&gt;Every dollar you save can go toward paying down your debt faster.&lt;/p&gt;&lt;h2 data-block-key="ghi72" id="4.-consider-a-side-hustle"&gt;4. Consider a side hustle&lt;/h2&gt;&lt;p data-block-key="ct6qn"&gt;Earning extra income is one of the fastest ways to pay off debt. Even an extra $200 to $500 a month can make a big difference. Consider:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="195mu"&gt;Freelancing or gig work (writing, graphic design, tutoring, etc.)&lt;/li&gt;&lt;li data-block-key="dcnma"&gt;Driving for a rideshare or food delivery service&lt;/li&gt;&lt;li data-block-key="eihl"&gt;Selling unused items online&lt;/li&gt;&lt;li data-block-key="6tkdp"&gt;Picking up extra shifts at your current job&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="91pt9"&gt;Every extra dollar you earn should go directly toward paying off your credit cards.&lt;/p&gt;&lt;h2 data-block-key="d4fqs" id="5.-negotiate-a-lower-interest-rate"&gt;5. Negotiate a lower interest rate&lt;/h2&gt;&lt;p data-block-key="80m5k"&gt;You might be able to lower your interest rate just by asking, especially if you've been a long-time customer with a good payment history. Call your credit card company and request a rate reduction. Even a small rate cut can save you money and help you pay off debt faster.&lt;/p&gt;&lt;h2 data-block-key="dj8qa" id="start-getting-out-of-debt-today"&gt;Start getting out of debt today&lt;/h2&gt;&lt;p data-block-key="2eo4a"&gt;Getting out of credit card debt takes discipline, but it's absolutely possible. Whether you use a balance transfer card, focus on cutting expenses, or pick up a side hustle, the key is to stick to a plan and keep making progress. The sooner you start, the sooner you'll be debt free.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f1532c9a-f88e-4e4b-a6e0-f4e1678cbb97&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f1532c9a-f88e-4e4b-a6e0-f4e1678cbb97&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 16 Feb 2025 07:00:20 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/heres-how-to-get-out-of-credit-card-debt/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=210a04be-dd7f-4d50-8317-1c234e6ef933</guid><category domain="https://www.fool.com/guid">210a04be-dd7f-4d50-8317-1c234e6ef933</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>3 Reasons I've Never Opened a CD -- Even With Rates Over 4%</title><link>https://www.fool.com/money/banks/articles/3-reasons-ive-never-opened-a-cd-even-with-rates-over-4/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Man with glasses looking at laptop." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FMan_with_glasses_looking_at_laptop_4kjg58n.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="f9ol0"&gt;With rates currently over 4%, certificates of deposit (CDs) can seem like a no-brainer: They offer a guaranteed return with zero risk. But despite the tempting rates, I've never opened a CD, and I don't plan to. Here's why.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ecd58544-7e82-40e6-89f2-52607adbdbc5&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ecd58544-7e82-40e6-89f2-52607adbdbc5&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;h2 data-block-key="s4ah3" id="1.-my-money-needs-to-stay-flexible"&gt;1. My money needs to stay flexible&lt;/h2&gt;&lt;p data-block-key="30e4b"&gt;One of the biggest drawbacks of CDs is the lack of flexibility. When you put your money in a CD, you're committing to leave it there for months or even years. If you need to withdraw money before the CD matures, you'll often face penalties that eat into your interest and sometimes even your principal.&lt;/p&gt;&lt;p data-block-key="1fol9"&gt;I prefer to keep my cash in one of the &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4" target="_blank"&gt;best high-yield savings accounts&lt;/a&gt;. The rates are currently similar to CDs, and I can access my money anytime without worrying about penalties. Life is unpredictable, and I'd rather have quick access to my cash if an emergency, or an investment opportunity, comes up.&lt;/p&gt;&lt;h2 data-block-key="w203y" id="2.-i-can-earn-more-elsewhere"&gt;2. I can earn more elsewhere&lt;/h2&gt;&lt;p data-block-key="a19ml"&gt;While a 4% (or higher) return sounds great, it's not the best option for growing wealth over the long term. CDs are safe, but they often lag behind inflation and don't offer the same upside as other investments.&lt;/p&gt;&lt;p data-block-key="eq1mk"&gt;Instead, I keep most of my money in stocks and index funds through a tax-advantaged retirement account: a &lt;a href="https://www.fool.com/money/buying-stocks/best-roth-ira/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4" target="_blank"&gt;Roth IRA&lt;/a&gt;. Historically, the stock market has returned 10% annually over the long run -- far outpacing even the best CD rates. Sure, the market has ups and downs, but since I don't need that money right away, I'm willing to ride out the volatility for higher potential returns.&lt;/p&gt;&lt;h2 data-block-key="aegyh" id="3.-interest-rates-are-always-changing"&gt;3. Interest rates are always changing&lt;/h2&gt;&lt;p data-block-key="54phv"&gt;Locking my money into a CD feels like a gamble. If I open a CD today at 4%, what happens if rates climb to 5% next month? I'll be stuck with a lower rate while others are earning more.&lt;/p&gt;&lt;p data-block-key="6u9lo"&gt;By keeping my cash in a more flexible account, I can take advantage of rising rates without being locked into a long-term commitment. Some savings accounts adjust their rates regularly, meaning I can benefit from increasing returns without losing access to my money.&lt;/p&gt;&lt;p data-block-key="4chmi"&gt;&lt;i&gt;Earn more than 10 times the national average on your savings.&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Open a high-yield savings account today&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;i&gt;.&lt;/i&gt;&lt;/p&gt;&lt;h2 data-block-key="joff5" id="there-are-better-options-out-there"&gt;There are better options out there&lt;/h2&gt;&lt;p data-block-key="4e66q"&gt;CDs can be a good option for those who prioritize safety and don't mind locking up their money. But for me, flexibility, higher earning potential, and the ability to adapt to changing rates are more important.&lt;/p&gt;&lt;p data-block-key="biso5"&gt;If you're considering a CD, ask yourself: Do I need access to my money? Am I comfortable with the returns? Do I want to lock in a rate now? Depending on your answers, a CD might be the right choice for you. But for now, I'll be keeping my cash elsewhere.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b275da42-73f5-4bed-b5be-9b710659002b&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b275da42-73f5-4bed-b5be-9b710659002b&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 16 Feb 2025 06:30:28 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/3-reasons-ive-never-opened-a-cd-even-with-rates-over-4/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=d842ef1e-9014-4bae-afaf-6dcb310795b4</guid><category domain="https://www.fool.com/guid">d842ef1e-9014-4bae-afaf-6dcb310795b4</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>The Average American Has This Much Debt. How Does Yours Compare?</title><link>https://www.fool.com/money/credit-cards/articles/the-average-american-has-this-much-debt-how-does-yours-compare/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young woman and man sitting at the kitchen table and looking over paperwork." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fcouple_at_home_with_bills.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="u8i8x"&gt;The average American had $105,056 in debt in 2024, according to &lt;a href="https://www.experian.com/blogs/ask-experian/research/consumer-debt-study/"&gt;Experian&lt;/a&gt;, the largest credit bureau in the U.S.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f60b43db-69ee-4c01-a99a-4d443336b957&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f60b43db-69ee-4c01-a99a-4d443336b957&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="92v2a"&gt;Here are some highlights of the report:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="180fc"&gt;Debts of almost every type were higher in 2024 than in 2023. That's to be expected, given that prices rose by 2.9% last year.&lt;/li&gt;&lt;li data-block-key="2h0bn"&gt;The average &lt;a href="https://www.fool.com/money/mortgages/best-mortgage-lenders/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" target="_blank"&gt;mortgage&lt;/a&gt; balance was $252,505.&lt;/li&gt;&lt;li data-block-key="51up2"&gt;The average student loan balance was $35,208, down 9.2% thanks in part to federal student loan forgiveness.&lt;/li&gt;&lt;li data-block-key="euosj"&gt;The average auto loan balance was $24,297.&lt;/li&gt;&lt;li data-block-key="7jjm1"&gt;The average &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" target="_blank"&gt;credit card&lt;/a&gt; balance was $6,730.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="b7che"&gt;These numbers don't tell the whole story, though. Owing less than average doesn't mean you're doing "better" than most, and owing more isn't necessarily bad, either.&lt;/p&gt;&lt;p data-block-key="dat32"&gt;Here's how to tell if your debts are too high or not.&lt;/p&gt;&lt;h2 data-block-key="048jd" id="look-at-your-interest-rates"&gt;Look at your interest rates&lt;/h2&gt;&lt;p data-block-key="2ehlh"&gt;The makeup of your debt says a lot about your financial health. Mortgages have pretty low interest rates, for example, while the APRs of credit cards are extremely high.&lt;/p&gt;&lt;p data-block-key="e61b5"&gt;Let's say you have $300,000 in total debt:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="75c3p"&gt;A $250,000 mortgage with an APR of 5%&lt;/li&gt;&lt;li data-block-key="77p1v"&gt;A $30,000 student loan with an APR of 7%&lt;/li&gt;&lt;li data-block-key="4ci32"&gt;A $20,000 auto loan with an APR of 8%&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="fq7n7"&gt;Although your total debt is much higher than average, the average interest rate on all your debt is &lt;b&gt;5.4%&lt;/b&gt;, which is pretty low.&lt;/p&gt;&lt;p data-block-key="avkf2"&gt;If we used the same example, except you had &lt;b&gt;no mortgage and $15,000 in credit card debt at a 22% APR&lt;/b&gt;, then your total debt would be $65,000 -- much lower than average. However, your average interest rate would be almost &lt;b&gt;10.8%&lt;/b&gt;, which means your debt is costing you an awful lot in interest.&lt;/p&gt;&lt;p data-block-key="d8pnn"&gt;&lt;i&gt;Have a lot of unpaid credit card debt?&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best balance transfer cards and see if you could pay 0% APR on your credit card bills for 12 months or longer.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="fo1w8" id="find-your-debt-to-income-ratio"&gt;Find your debt-to-income ratio&lt;/h2&gt;&lt;p data-block-key="68rja"&gt;Carrying a lot of debt isn't necessarily bad if your average interest rate is low &lt;b&gt;and&lt;/b&gt; you have no trouble paying all your bills. Ideally, you're spending &lt;b&gt;no more than 35% of your income&lt;/b&gt; on monthly debt payments.&lt;/p&gt;&lt;p data-block-key="eu9di"&gt;The percentage of your income that you spend on debt repayment is called your debt-to-income ratio. Here's how to calculate it:&lt;/p&gt;&lt;ol&gt;&lt;li data-block-key="c946c"&gt;Add up all your monthly debt payments. If you don't have a mortgage, use your rent instead. For credit cards, use the minimum payment.&lt;/li&gt;&lt;li data-block-key="6ivvk"&gt;Divide that total by your monthly income (before taxes)&lt;/li&gt;&lt;/ol&gt;&lt;p data-block-key="3d8d3"&gt;If the result is 0.35 or less, then you're likely doing fine. You should have plenty of income left over to cover your other expenses and save for retirement. However, if it's above 35%, then your budget may be tight -- and you may not be able to get the best terms on new loans.&lt;/p&gt;&lt;h2 data-block-key="zvpfv" id="don't-compare-yourself-to-the-average"&gt;Don't compare yourself to the average&lt;/h2&gt;&lt;p data-block-key="835gd"&gt;The average debt of $105,000 looks like peanuts to someone who has a low-APR mortgage and makes $200,000 a year. But that amount of debt could be disastrous for someone who earns $50,000 a year and owes a lot of money to credit card companies.&lt;/p&gt;&lt;p data-block-key="7nd7d"&gt;If your average interest rate and your debt-to-income ratio are high, then make debt repayment your No. 1 priority.&lt;/p&gt;&lt;p data-block-key="9uvjg"&gt;To get rid of credit card debt faster, see if you qualify for a balance transfer credit card. For a fee, you can move your existing balances to a new card that charges an &lt;a href="https://www.fool.com/money/credit-cards/best-zero-interest-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" target="_blank"&gt;intro 0% APR&lt;/a&gt; for 12 months or more. Without new interest charges piling up, you'll have more room in your budget to pay off that balance before the 0% APR period ends.&lt;/p&gt;&lt;p data-block-key="188bp"&gt;Another option is a debt consolidation loan. This is a type of &lt;a href="https://www.fool.com/money/personal-loans/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" target="_blank"&gt;personal loan&lt;/a&gt; that gives you a lump sum of money to pay off other debts. Of course, you then have to repay the new loan -- but it may have a much lower interest rate than your previous debts. If your credit score is good, then you may be able to get a debt consolidation loan with an APR less than half what you're paying on a credit card. And the lower your APR, the more you stand to save over the course of your debt repayment.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=413a47e6-841a-4b9c-bebe-22674960db45&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=413a47e6-841a-4b9c-bebe-22674960db45&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 16 Feb 2025 06:00:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/the-average-american-has-this-much-debt-how-does-yours-compare/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=006375da-c61e-457b-92fa-e435e7dbc290</guid><category domain="https://www.fool.com/guid">006375da-c61e-457b-92fa-e435e7dbc290</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>3 Good Reasons Not to Keep Money in a Savings Account</title><link>https://www.fool.com/money/banks/articles/3-good-reasons-not-to-keep-money-in-savings-account/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young man sits at his desk and looks over his investment accounts." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FYoung_man_looks_over_his_investment_accounts_H.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="2vzaz"&gt;A &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" target="_blank"&gt;high-yield savings&lt;/a&gt; account is the best place for your emergency fund and any other money you might need within a few years. You always want some cash set aside that you can tap whenever you need it.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=644e311a-547e-41da-b50c-32209841be45&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=644e311a-547e-41da-b50c-32209841be45&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="d2akc"&gt;However, a savings account is not the best place to put money you're saving for big, long-term goals. Keeping &lt;i&gt;all&lt;/i&gt; your money in savings could cost you thousands of dollars in interest and taxes.&lt;/p&gt;&lt;p data-block-key="ar3kp"&gt;Here are three reasons why you might want to put your money elsewhere.&lt;/p&gt;&lt;h2 data-block-key="fzsny" id="1.-you're-saving-the-money-for-retirement"&gt;1. You're saving the money for retirement&lt;/h2&gt;&lt;p data-block-key="6cgm1"&gt;The best high-yield savings accounts pay annual percentage yields (APYs) around 4%. That's not bad for a safe, guaranteed return. However, most of us need our retirement savings to grow much faster than that.&lt;/p&gt;&lt;p data-block-key="3vkak"&gt;Over the past 68 years, the stock market (as measured by the S&amp;P 500 Index) has gained an average of 10% per year -- more than twice the interest rate of today's best savings accounts.&lt;/p&gt;&lt;p data-block-key="dofs3"&gt;Let's say you're saving $1,000 a month, starting from zero. Here's how much your savings would grow if you 1) put that money in a savings account yielding 4% or 2) invested it in stocks and earned 7% per year (less than the historical average).&lt;/p&gt;&lt;div class="ta_table-wrap"&gt;&lt;table class="ta_table"&gt;&lt;thead&gt;&lt;tr&gt;&lt;th&gt;Years&lt;/th&gt;&lt;th&gt;Savings Account Balance (4% APY)&lt;/th&gt;&lt;th&gt;Stock Portfolio Value (7% Annual Return)&lt;/th&gt;&lt;/tr&gt;&lt;/thead&gt;&lt;tbody&gt;&lt;tr&gt;&lt;td&gt;5&lt;/td&gt;&lt;td&gt;$66,277&lt;/td&gt;&lt;td&gt;$71,681&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;10&lt;/td&gt;&lt;td&gt;$148,025&lt;/td&gt;&lt;td&gt;$173,528&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;20&lt;/td&gt;&lt;td&gt;$368,160&lt;/td&gt;&lt;td&gt;$508,995&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;30&lt;/td&gt;&lt;td&gt;$697,808&lt;/td&gt;&lt;td&gt;$1,217,950&lt;/td&gt;&lt;/tr&gt;&lt;/tbody&gt;&lt;/table&gt;&lt;/div&gt;&lt;div class="caption pt--0 c--sec-drkr"&gt;Data source: Author's calculations.&lt;/div&gt;&lt;p data-block-key="3u56z"&gt;Not only can you earn more money by investing in stocks, but there are special retirement investing accounts that offer huge tax breaks. For example, the money you invest through a traditional 401(k) or &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" target="_blank"&gt;IRA&lt;/a&gt; is not subject to income tax for the year. That could save you thousands of dollars up front. On top of that, the investments in the account won't be hit with capital gains taxes or dividend taxes.&lt;/p&gt;&lt;p data-block-key="3nbv5"&gt;For the money you're saving for retirement, start with a 401(k) if you have access to one, and be sure to earn the full employer match (if one is offered). Your next best option is an IRA. Just make sure you understand what you're investing in. If you're unsure where to start, consider a low-fee stock market &lt;a href="https://www.fool.com/investing/how-to-invest/index-funds/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" target="_blank"&gt;index fund&lt;/a&gt;. You could also opt for a &lt;a href="https://www.fool.com/retirement/strategies/target-date-funds/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" target="_blank"&gt;target date fund&lt;/a&gt; that chooses investments based on your investing timeline and when you expect to retire.&lt;/p&gt;&lt;h2 data-block-key="wyjut" id="2.-you're-saving-the-money-for-college-tuition"&gt;2. You're saving the money for college tuition&lt;/h2&gt;&lt;p data-block-key="eh7pc"&gt;If you're saving money to pay for someone's college tuition years down the road, then you'll probably want more growth than a savings account can offer. And just like your retirement savings, college savings can go into a special type of account that offers higher potential returns and big tax breaks.&lt;/p&gt;&lt;p data-block-key="dca6i"&gt;A &lt;a href="https://www.fool.com/money/buying-stocks/best-roth-ira/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" target="_blank"&gt;Roth IRA&lt;/a&gt; is a retirement savings account, much like a traditional IRA. However, you can use a Roth IRA for college savings, too. You can't deduct your contributions from your taxable income for the year. However, when the funds are later withdrawn for qualifying education expenses, they're tax free. You can open a Roth IRA through any of the &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" target="_blank"&gt;best stock brokers&lt;/a&gt;.&lt;/p&gt;&lt;p data-block-key="357us"&gt;Another great option is a 529 plan. These are run by the state, and every state's plan is a little different. These accounts are &lt;i&gt;only&lt;/i&gt; for future education expenses; they can't double as retirement savings accounts. However, they offer the same tax benefits as a Roth IRA.&lt;/p&gt;&lt;p data-block-key="7mfr7"&gt;Both Roth IRAs and 529 plans have some rules and restrictions, so be sure to read up on them before opening an account.&lt;/p&gt;&lt;h2 data-block-key="pddh1" id="3.-you're-behind-on-credit-card-bills"&gt;3. You're behind on credit card bills&lt;/h2&gt;&lt;p data-block-key="c741i"&gt;There's debate on whether it's best to save up an emergency fund or pay off credit card debt first. If you don't have enough money in savings to cover a big, unexpected bill, then you may have to use a credit card -- and wind up even deeper in debt.&lt;/p&gt;&lt;p data-block-key="ctrk9"&gt;However, if you have thousands of dollars in credit card debt and can barely make your minimum payments, then you'll be swimming upstream until that debt is paid off. Your credit card's APR is way higher than the interest rate on any savings account, so you won't get ahead by putting money in savings.&lt;/p&gt;&lt;p data-block-key="c1pb7"&gt;And if you can't even make the minimum payment, you could get hit with fees and an even higher APR (known as a "penalty APR"). It's a vicious cycle that's difficult to break out of unless you focus all your efforts on debt repayment.&lt;/p&gt;&lt;h2 data-block-key="4cxr6" id="savings-accounts-are-essential"&gt;Savings accounts are essential&lt;/h2&gt;&lt;p data-block-key="depht"&gt;There's pretty much no reason &lt;i&gt;not&lt;/i&gt; to have a high-yield savings account. It keeps your money safe, pays a little interest, and allows you to deposit or withdraw money whenever you want. That makes it perfect for your short-term savings.&lt;/p&gt;&lt;p data-block-key="91fa5"&gt;Once you have enough money in savings to cover three to six months' worth of expenses, though, you might want to start putting your cash elsewhere.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=015aef70-7631-4900-9330-71c2b6ef1753&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=015aef70-7631-4900-9330-71c2b6ef1753&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 16 Feb 2025 05:30:18 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/3-good-reasons-not-to-keep-money-in-savings-account/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=5e07b698-0fbc-4566-bbff-ca0cc9b43f5a</guid><category domain="https://www.fool.com/guid">5e07b698-0fbc-4566-bbff-ca0cc9b43f5a</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>4 Types of Credit Cards to Avoid at All Costs</title><link>https://www.fool.com/money/credit-cards/articles/4-types-of-cards-to-avoid-at-all-costs/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A female clerk at a clothing store swiping a credit card on a payment tablet." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fstore_clerk_swiping_credit_card.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="45q2h"&gt;Not all credit cards are created equal. While some offer great perks like cash back, travel rewards, or 0% intro APR periods, others are loaded with sky-high interest rates or offer little to no rewards.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b49ca26a-ed17-4d91-9751-6ce269334c77&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b49ca26a-ed17-4d91-9751-6ce269334c77&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="a2tbl"&gt;Before applying for your next credit card, it's important to know which ones to avoid. Some cards make it harder to build credit, trap you in debt, or simply don't offer enough value. Here are four types of credit cards you should steer clear of.&lt;/p&gt;&lt;h2 data-block-key="hupgk" id="1.-store-credit-cards-with-high-interest-rates"&gt;1. Store credit cards with high interest rates&lt;/h2&gt;&lt;p data-block-key="f6ln"&gt;It's tempting to sign up for a store credit card when the cashier offers an instant 20% discount on your purchase. But that one-time savings could end up costing you way more in the long run.&lt;/p&gt;&lt;p data-block-key="el11f"&gt;The average store credit card interest rate is currently sky-high at 30.45%. That means if you don't pay off your balance in full, interest charges will quickly outweigh any initial discount. Plus, these cards can usually only be used at one retailer or chain of retailers, limiting their usefulness.&lt;/p&gt;&lt;p data-block-key="bbe3a"&gt;If you shop frequently at a certain store, look for &lt;a href="https://www.fool.com/money/credit-cards/best-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" target="_blank"&gt;a general rewards card&lt;/a&gt; that offers cash back on all purchases, not just at one retailer.&lt;/p&gt;&lt;h2 data-block-key="zdke5" id="2.-credit-cards-that-don't-offer-rewards"&gt;2. Credit cards that don't offer rewards&lt;/h2&gt;&lt;p data-block-key="8uvbt"&gt;If you're using a credit card that doesn't earn rewards, you're missing out on what can essentially be free money.&lt;/p&gt;&lt;p data-block-key="r5gi"&gt;A good rewards card can offer:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="dfd8k"&gt;Cash back on everyday purchases (like groceries, gas, and dining)&lt;/li&gt;&lt;li data-block-key="cuipo"&gt;Points or miles for travel and entertainment&lt;/li&gt;&lt;li data-block-key="fj02t"&gt;Sign-up bonuses that can be worth hundreds of dollars&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="fvd1n"&gt;Choose a &lt;a href="https://www.fool.com/money/credit-cards/best-cash-back-credit-card/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" target="_blank"&gt;cash back&lt;/a&gt; or travel rewards card that fits your spending habits. Even if you don't spend a lot, some cards offer 1.5% to 2% cash back across the board -- which really adds up over time.&lt;/p&gt;&lt;p data-block-key="6i8g6"&gt;&lt;i&gt;Never pay full price for a flight again.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of best travel credit cards now.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="shwq7" id="3.-cards-with-extremely-high-aprs"&gt;3. Cards with extremely high APRs&lt;/h2&gt;&lt;p data-block-key="69g5g"&gt;If a credit card has an APR above 25%, it's probably not worth having. While it's good to get in the habit of paying your balance in full each month, falling even a little behind on high-interest debt can spiral out of control quickly.&lt;/p&gt;&lt;p data-block-key="315f0"&gt;Many people assume all credit cards have high APRs, but that's not true. Some cards offer 0% intro APR periods for a year or more, giving you time to pay off big purchases without interest. Others provide lower ongoing APRs if you have good credit.&lt;/p&gt;&lt;p data-block-key="e33o3"&gt;Some of the &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" target="_blank"&gt;best balance transfer cards&lt;/a&gt; give you up to 21 months of 0% interest to pay off debt that you transferred to your new card.&lt;/p&gt;&lt;h2 data-block-key="r0qy8" id="4.-cards-with-expensive-annual-fees-that-aren't-worth-it"&gt;4. Cards with expensive annual fees that aren't worth it&lt;/h2&gt;&lt;p data-block-key="2c754"&gt;Some premium credit cards charge annual fees as high as $695. While most high-end cards offer valuable perks, some others just aren't worth the cost.&lt;/p&gt;&lt;p data-block-key="dua52"&gt;Before getting a card with an annual fee, ask yourself:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="851mo"&gt;Do the rewards and perks outweigh the fee?&lt;/li&gt;&lt;li data-block-key="9s1i"&gt;Will I actually use the travel credits, lounge access, or other benefits?&lt;/li&gt;&lt;li data-block-key="c0nbk"&gt;Is there a similar no annual fee card that offers nearly the same perks?&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="66vf7"&gt;If you don't want to pay an annual fee, look for a &lt;a href="https://www.fool.com/money/credit-cards/best-no-annual-fee-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" target="_blank"&gt;no annual fee rewards card&lt;/a&gt; that still earns solid cash back or travel points. Many offer similar perks without the hefty price tag.&lt;/p&gt;&lt;p data-block-key="eipji"&gt;Credit cards can be a valuable tool to have in your wallet, but they're not all winners. For best results, stay away from store cards, cards lacking rewards, and cards with high ongoing APRs or annual fees that just aren't worth it.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=29ba2149-ac90-482e-9ed6-916d35cb920a&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=29ba2149-ac90-482e-9ed6-916d35cb920a&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sat, 15 Feb 2025 07:00:18 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/4-types-of-cards-to-avoid-at-all-costs/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=6f48db4b-3f13-4908-8b24-dbd6c5f65e69</guid><category domain="https://www.fool.com/guid">6f48db4b-3f13-4908-8b24-dbd6c5f65e69</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>This Banking Mistake Could Cost You Hundreds of Dollars a Year</title><link>https://www.fool.com/money/banks/articles/this-banking-mistake-could-cost-you-hundreds-of-dollars-a-year/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A red piggy bank against a yellow background" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FUntitled_design_10_zpUhXeX.width-793.png%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: The Motley Fool/Unsplash&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="pddra"&gt;Many people don't realize just how bad their savings account is. They may not even know the interest rate they're earning on their deposits.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b0b5987c-e09a-45b2-bcc5-ff48544a5a98&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b0b5987c-e09a-45b2-bcc5-ff48544a5a98&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="di6ik"&gt;If that describes you, then you may be costing yourself hundreds of dollars each year -- and thousands in the long run.&lt;/p&gt;&lt;p data-block-key="a476e"&gt;If your bank pays a low annual percentage yield (APY), let's look at how much interest you could be earning elsewhere -- and how you can easily switch to a better account.&lt;/p&gt;&lt;h2 data-block-key="yk5e8" id="the-cost-of-a-low-apy"&gt;The cost of a low APY&lt;/h2&gt;&lt;p data-block-key="ed393"&gt;Most big, traditional banks offer savings accounts with very low APYs. The national average APY is just &lt;b&gt;0.41%&lt;/b&gt;. Meanwhile, the &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad" target="_blank"&gt;best high-yield savings accounts&lt;/a&gt; have APYs of about 4.00% or more.&lt;/p&gt;&lt;p data-block-key="298io"&gt;Here's how much a deposit of $10,000 would earn over time in 1) an account paying the average rate and 2) an account paying 4.00%.&lt;/p&gt;&lt;div class="ta_table-wrap"&gt;&lt;table class="ta_table"&gt;&lt;thead&gt;&lt;tr&gt;&lt;th&gt;Years&lt;/th&gt;&lt;th&gt;Interest Earned (0.41% APY)&lt;/th&gt;&lt;th&gt;Interest Earned (4.00% APY)&lt;/th&gt;&lt;/tr&gt;&lt;/thead&gt;&lt;tbody&gt;&lt;tr&gt;&lt;td&gt;1&lt;/td&gt;&lt;td&gt;$41&lt;/td&gt;&lt;td&gt;$400&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;5&lt;/td&gt;&lt;td&gt;$207&lt;/td&gt;&lt;td&gt;$2,167&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;10&lt;/td&gt;&lt;td&gt;$418&lt;/td&gt;&lt;td&gt;$4,802&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;20&lt;/td&gt;&lt;td&gt;$853&lt;/td&gt;&lt;td&gt;$11,911&lt;/td&gt;&lt;/tr&gt;&lt;/tbody&gt;&lt;/table&gt;&lt;/div&gt;&lt;div class="caption pt--0 c--sec-drkr"&gt;Data source: Author's calculations.&lt;/div&gt;&lt;p data-block-key="0pm28"&gt;The 4.00% APY account would earn $359 more in the first year alone. Over the course of years, the difference is astronomical.&lt;/p&gt;&lt;p data-block-key="6ipn1"&gt;&lt;i&gt;Want to earn 10 times the national average APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and open a new account today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="prhwq" id="why-do-some-banks-offer-much-higher-apys"&gt;Why do some banks offer much higher APYs?&lt;/h2&gt;&lt;p data-block-key="bmg1g"&gt;Many big, traditional banks have physical bank branches. This increases their costs, so they tend to have lower APYs -- and more fees. On top of that, they know that many customers will never bother to switch bank accounts, so they don't feel the need to pay more.&lt;/p&gt;&lt;p data-block-key="432ja"&gt;The banks that pay the highest APYs tend to be online-only. This saves them a lot of money, so they can pass those savings on to their customers through higher interest rates and low (or no) fees.&lt;/p&gt;&lt;h3 data-block-key="7qxc7" id="what-to-look-for-in-a-savings-account"&gt;What to look for in a savings account&lt;/h3&gt;&lt;p data-block-key="cgplf"&gt;If you're ready to switch, here are some key features to look for:&lt;/p&gt;&lt;ol&gt;&lt;li data-block-key="3malp"&gt;&lt;b&gt;High APY.&lt;/b&gt; Look for accounts offering at least &lt;b&gt;3.75% APY&lt;/b&gt; to maximize your earnings.&lt;/li&gt;&lt;li data-block-key="abi9o"&gt;&lt;b&gt;No monthly fees.&lt;/b&gt; Avoid banks that charge fees just to keep your money there.&lt;/li&gt;&lt;li data-block-key="bne9"&gt;&lt;b&gt;Easy access to your money.&lt;/b&gt; Ensure the account allows quick transfers when needed. The best banks have user-friendly apps and websites that make it fast and easy to manage your money.&lt;/li&gt;&lt;li data-block-key="82t9c"&gt;&lt;b&gt;FDIC insurance.&lt;/b&gt; Make sure your bank is insured, so your money is protected up to $250,000.&lt;/li&gt;&lt;li data-block-key="bfu28"&gt;&lt;b&gt;Good customer service.&lt;/b&gt; Read reviews and choose a bank with helpful support.&lt;/li&gt;&lt;li data-block-key="aime7"&gt;&lt;b&gt;A good checking account.&lt;/b&gt; You'll probably want to link your new savings account to a checking account at the same bank. The &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad" target="_blank"&gt;best checking accounts&lt;/a&gt; pay interest and have other perks like no overdraft fees and a large ATM network.&lt;/li&gt;&lt;/ol&gt;&lt;h3 data-block-key="7pp0b" id="how-to-switch-to-a-better-account"&gt;How to switch to a better account&lt;/h3&gt;&lt;p data-block-key="chsh8"&gt;Switching to a high-yield savings account is simple. Just follow these steps:&lt;/p&gt;&lt;ol&gt;&lt;li data-block-key="d5kus"&gt;&lt;b&gt;Research your options.&lt;/b&gt; Compare APYs, fees, and key features.&lt;/li&gt;&lt;li data-block-key="c3stt"&gt;&lt;b&gt;Read the fine print.&lt;/b&gt; Some banks require you to deposit a minimum amount to earn their highest APYs, for example.&lt;/li&gt;&lt;li data-block-key="eqjcv"&gt;&lt;b&gt;Open a new account.&lt;/b&gt; This should only take a few minutes online.&lt;/li&gt;&lt;li data-block-key="9ccdv"&gt;&lt;b&gt;Transfer your money.&lt;/b&gt; Move your savings from your old account to start earning more interest.&lt;/li&gt;&lt;li data-block-key="4npqi"&gt;&lt;b&gt;Update automatic deposits and withdrawals.&lt;/b&gt; If you have direct deposits or automatic bill payments set up, update them ASAP.&lt;/li&gt;&lt;li data-block-key="an54m"&gt;&lt;b&gt;Close your old account.&lt;/b&gt; Once everything is moved over, close the old account to avoid unnecessary fees.&lt;/li&gt;&lt;/ol&gt;&lt;p data-block-key="2it2r"&gt;I recently switched bank accounts, and I completed all the above in about an hour. Not bad for thousands of dollars in future interest payments!&lt;/p&gt;&lt;h2 data-block-key="r6lm9" id="don't-delay-it's-easier-than-you-think"&gt;Don't delay -- it's easier than you think&lt;/h2&gt;&lt;p data-block-key="6i1pp"&gt;Moving your savings to a high-yield savings account is an easy, surefire way to start earning more money now. Don't settle for a stingy bank just because you think switching will be a headache. With competition more heated than ever, banks have made it incredibly easy to open and fund a new account.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=65b1baa7-47fd-42db-9d69-de4da8322cbc&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=65b1baa7-47fd-42db-9d69-de4da8322cbc&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sat, 15 Feb 2025 06:30:18 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/this-banking-mistake-could-cost-you-hundreds-of-dollars-a-year/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=754455a9-de6f-409a-9dad-6f2ea178d0ad</guid><category domain="https://www.fool.com/guid">754455a9-de6f-409a-9dad-6f2ea178d0ad</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>It's Time to Ditch Your Old Bank Account -- These Online Banks Offer High Rates and No Fees</title><link>https://www.fool.com/money/banks/articles/its-time-to-ditch-your-old-bank-account-these-online-banks-offer-high-rates-and-no-fees/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e6274f51-bd27-44e4-9ca0-840eb336a757</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A woman looking at her finances with a laptop and phone." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fonline_banking_2oXkWvG_nlXvBlq.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="hjj6c"&gt;If you opened a bank account around the time you got your first job and haven't really thought about it again, you're not alone. But you're likely leaving hundreds or even thousands of dollars on the table.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=25deaf7c-aead-4c16-b2b5-9b3ab6cf51fb&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e6274f51-bd27-44e4-9ca0-840eb336a757" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=25deaf7c-aead-4c16-b2b5-9b3ab6cf51fb&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e6274f51-bd27-44e4-9ca0-840eb336a757" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="ckgr6"&gt;Many big banks offer rock-bottom interest rates on savings accounts -- the national average savings account rate is only 0.41% -- while charging monthly maintenance fees and requiring high minimum balances.&lt;/p&gt;&lt;p data-block-key="7br84"&gt;The good news is that online banks are shaking things up with &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e6274f51-bd27-44e4-9ca0-840eb336a757" target="_blank"&gt;high-yield savings accounts&lt;/a&gt; that earn 10x the national average APY, have no hidden fees, and are easy-to-use digital platforms.&lt;/p&gt;&lt;p data-block-key="8n1p0"&gt;If you're ready to make your money work harder for you, here's why switching to an online bank is a smart move.&lt;/p&gt;&lt;h2 data-block-key="k0muh" id="why-online-banks-are-a-better-deal"&gt;Why online banks are a better deal&lt;/h2&gt;&lt;p data-block-key="9k18f"&gt;Online banks don't have the overhead costs of brick-and-mortar locations, allowing them to pass those savings on to customers. That means higher interest rates, fewer fees, and better perks.&lt;/p&gt;&lt;p data-block-key="fnj0t"&gt;Here's what makes online banks stand out:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="5mssq"&gt;&lt;b&gt;High-yield savings accounts&lt;/b&gt; -- Many online banks offer APYs of 4.00% or higher, about 10x the national average of 0.41%.&lt;/li&gt;&lt;li data-block-key="bjqf6"&gt;&lt;b&gt;No monthly fees&lt;/b&gt; -- No more paying $10-$15 a month just to keep your money in the bank.&lt;/li&gt;&lt;li data-block-key="5avbh"&gt;&lt;b&gt;No minimum balance requirements&lt;/b&gt; -- Traditional banks often require you to maintain a high balance to avoid fees. Online banks don't.&lt;/li&gt;&lt;li data-block-key="e5co2"&gt;&lt;b&gt;24/7 access and mobile banking&lt;/b&gt; -- With robust apps and online tools, you can manage your money anytime, anywhere.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="fmuph"&gt;If you're thinking about making the switch, here are some of the best online banks currently offering top-tier rates and no fees:&lt;/p&gt;&lt;h3 data-block-key="9m7rd" id=""&gt;How to make the switch&lt;/h3&gt;&lt;p data-block-key="4q1dl"&gt;Switching banks is easier than you think. Follow these simple steps:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="fdlm9"&gt;&lt;b&gt;Open your new online account.&lt;/b&gt; Pick the online bank that best suits your needs and apply online. Approval usually takes just minutes.&lt;/li&gt;&lt;li data-block-key="963oc"&gt;&lt;b&gt;Transfer your money.&lt;/b&gt; Move your funds to your new account, but keep your old account open until all transactions clear.&lt;/li&gt;&lt;li data-block-key="5kg1m"&gt;&lt;b&gt;Update direct deposits and bills.&lt;/b&gt; Make sure your paycheck, subscriptions, and bill payments are linked to your new account.&lt;/li&gt;&lt;li data-block-key="bkuj"&gt;&lt;b&gt;Close your old account.&lt;/b&gt; Once everything is switched over, contact your old bank and officially close your account to avoid lingering fees.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="4nh2b" id="make-the-switch-today"&gt;Make the switch today&lt;/h2&gt;&lt;p data-block-key="2b1nj"&gt;Sticking with a traditional bank is likely costing you money in low interest and unnecessary fees. Online banks offer better rates, fewer fees, and more convenience -- all without sacrificing security.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=4bde7245-3936-4010-afac-ffe386035fca&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e6274f51-bd27-44e4-9ca0-840eb336a757" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=4bde7245-3936-4010-afac-ffe386035fca&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e6274f51-bd27-44e4-9ca0-840eb336a757" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sat, 15 Feb 2025 06:00:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/its-time-to-ditch-your-old-bank-account-these-online-banks-offer-high-rates-and-no-fees/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=e6274f51-bd27-44e4-9ca0-840eb336a757</guid><category domain="https://www.fool.com/guid">e6274f51-bd27-44e4-9ca0-840eb336a757</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>4 Reasons the Roth IRA Might Be the Best Retirement Account Ever Created</title><link>https://www.fool.com/money/banks/articles/4-reasons-the-roth-ira-might-be-the-best-retirement-account-ever-created/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=8992aaa9-e928-4374-8ed5-8037f425c6de</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Mature woman working from laptop with documents in hand." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FMature_woman_working_from_laptop_with_document.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="fx3il"&gt;When planning for retirement, choosing the right account can make a huge difference in how much money you get to keep. While 401(k)s and &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=8992aaa9-e928-4374-8ed5-8037f425c6de" target="_blank"&gt;traditional IRAs&lt;/a&gt; offer tax advantages, the Roth IRA stands out as one of the most powerful retirement tools available.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ea3f3f01-8045-4d1d-9888-8e150ac8aae0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=8992aaa9-e928-4374-8ed5-8037f425c6de" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ea3f3f01-8045-4d1d-9888-8e150ac8aae0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=8992aaa9-e928-4374-8ed5-8037f425c6de" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="4voh4"&gt;A Roth IRA allows your money to grow tax free, gives you more flexibility with withdrawals, and doesn't force you to take out funds in retirement. For many savers, these benefits can add up to significant long-term advantages.&lt;/p&gt;&lt;p data-block-key="4ln0q"&gt;Here's why the Roth IRA might just be the best retirement account of all time.&lt;/p&gt;&lt;h2 data-block-key="3udhw" id="1.-you-enjoy-tax-free-growth-on-your-money"&gt;1. You enjoy tax-free growth on your money&lt;/h2&gt;&lt;p data-block-key="di51p"&gt;One of the biggest perks of a Roth IRA is tax-free growth. Unlike a traditional IRA or 401(k), where you'll eventually have to pay taxes on your withdrawals, a Roth IRA lets your money grow completely tax free.&lt;/p&gt;&lt;p data-block-key="e6b4o"&gt;Here's how it works:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="98inp"&gt;You contribute after-tax dollars, meaning you don't get a tax break upfront.&lt;/li&gt;&lt;li data-block-key="v4v0"&gt;Your investments grow over the years without being taxed.&lt;/li&gt;&lt;li data-block-key="467k7"&gt;When you retire, every dollar you withdraw is 100% tax free (as long as you follow the withdrawal rules).&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="as69t"&gt;This can be a game-changer, especially if you expect to be in a higher tax bracket in retirement.&lt;/p&gt;&lt;p data-block-key="5favj"&gt;&lt;i&gt;Don't miss out on growing your retirement savings tax free.&lt;/i&gt; &lt;a href="https://www.fool.com/money/buying-stocks/best-roth-ira/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=8992aaa9-e928-4374-8ed5-8037f425c6de" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of best Roth IRA accounts today&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="jbl4n" id="2.-no-required-minimum-distributions-(rmds)"&gt;2. No required minimum distributions (RMDs)&lt;/h2&gt;&lt;p data-block-key="4c2f9"&gt;Most retirement accounts, like traditional IRAs and 401(k)s, come with required minimum distributions (RMDs). That means once you hit age 73, the IRS forces you to start withdrawing a set amount each year.&lt;/p&gt;&lt;p data-block-key="8aodo"&gt;But with a Roth IRA? No RMDs. Ever.&lt;/p&gt;&lt;p data-block-key="6evvb"&gt;This gives you complete control over your money in retirement. You can leave it untouched for as long as you want, let it keep growing tax free, and even pass it down to your heirs without forcing them into large, taxable withdrawals.&lt;/p&gt;&lt;h2 data-block-key="h1sc4" id="3.-you-can-withdraw-contributions-anytime"&gt;3. You can withdraw contributions anytime&lt;/h2&gt;&lt;p data-block-key="b1ams"&gt;Most retirement accounts lock up your money until age 59 1/2, hitting you with penalties if you withdraw early. But a Roth IRA is different.&lt;/p&gt;&lt;p data-block-key="4u5s0"&gt;Since you contribute after-tax dollars, you can withdraw your contributions (not your earnings) at any time, for any reason, without penalties or taxes.&lt;/p&gt;&lt;p data-block-key="e62dk"&gt;For example, if you've contributed $30,000 over the years, you can take out up to $30,000 whenever you need it. This makes the Roth IRA a flexible option in case of emergencies or unexpected expenses.&lt;/p&gt;&lt;h2 data-block-key="3ohih" id="4.-it's-an-incredible-tool-for-wealth-transfer"&gt;4. It's an incredible tool for wealth transfer&lt;/h2&gt;&lt;p data-block-key="8nnr6"&gt;If you're thinking about leaving money to your loved ones, a Roth IRA is one of the best ways to do it. Since there are no RMDs, you can let your account grow for decades, and your heirs can inherit the money tax free.&lt;/p&gt;&lt;p data-block-key="fl0es"&gt;Even though non-spouse beneficiaries now have to withdraw the funds within 10 years, they won't owe taxes on the withdrawals. That means your Roth IRA can become a multi-generational wealth-building tool.&lt;/p&gt;&lt;h2 data-block-key="62xqj" id="is-a-roth-ira-right-for-you"&gt;Is a Roth IRA right for you?&lt;/h2&gt;&lt;p data-block-key="fdj1r"&gt;A Roth IRA isn't for everyone. Since contributions are not tax deductible, high earners who expect to be in a lower tax bracket in retirement may benefit more from a traditional IRA or 401(k). There are also income limits to qualify for direct Roth IRA contributions ($153,000 for single filers and $228,000 for married couples in 2024).&lt;/p&gt;&lt;p data-block-key="7j2v0"&gt;But for those who qualify, the Roth IRA's tax-free growth, flexible withdrawals, and lack of RMDs make it one of the most powerful retirement tools available.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d5883113-b66c-45e4-901b-f3458e0a5e1f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=8992aaa9-e928-4374-8ed5-8037f425c6de" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d5883113-b66c-45e4-901b-f3458e0a5e1f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=8992aaa9-e928-4374-8ed5-8037f425c6de" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sat, 15 Feb 2025 05:30:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/4-reasons-the-roth-ira-might-be-the-best-retirement-account-ever-created/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=8992aaa9-e928-4374-8ed5-8037f425c6de</guid><category domain="https://www.fool.com/guid">8992aaa9-e928-4374-8ed5-8037f425c6de</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's How Much Money You Should Have in Savings by 50. How Do You Compare?</title><link>https://www.fool.com/money/banks/articles/heres-how-much-money-you-should-have-in-savings-by-50-how-do-you-compare/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Couple talking with financial advisor and looking at paperwork. " src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fmature_couple_talking_to_financial_advisor_POC.width-793_BEoMjAR.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="c75kx"&gt;Everybody's "retirement number" is a little different. Some people will need to save a lot more or less than the average American to retire in comfort.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=fb13677d-16b7-4190-9f3b-7766a73421d1&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=fb13677d-16b7-4190-9f3b-7766a73421d1&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="55p3n"&gt;However, many financial experts say you should save at least six times your annual income by age 50. So if you're 50 years old and earn $80,000 a year, then ideally you have $480,000 or more in retirement savings.&lt;/p&gt;&lt;p data-block-key="donse"&gt;Let's go over some of the reasons you may need more or less money than that, as well as what you can do if you're behind.&lt;/p&gt;&lt;h2 data-block-key="0dbzi" id="why-you-might-need-more"&gt;Why you might need more&lt;/h2&gt;&lt;p data-block-key="1r93c"&gt;Here are just some of the reasons you may want to save more than six times your salary by age 50.&lt;/p&gt;&lt;h3 data-block-key="ddoed" id="you-plan-to-retire-early"&gt;You plan to retire early&lt;/h3&gt;&lt;p data-block-key="bvji7"&gt;The guideline of saving six times your salary by age 50 is based on the assumption that you'll retire at age 67. If you plan to retire earlier than that, you'll probably need more savings to make sure your money lasts as long as you do.&lt;/p&gt;&lt;h3 data-block-key="a2fay" id="you-expect-to-spend-a-lot-on-healthcare"&gt;You expect to spend a lot on healthcare&lt;/h3&gt;&lt;p data-block-key="54ogs"&gt;An average 65-year-old who retired in 2024 can expect to spend about $165,000 on healthcare throughout retirement, according to Fidelity Investments. That's a huge sum of money. If you have chronic health issues, or if you end up needing long-term care, then you'll likely spend a lot more than that. Nursing homes and assisted-living facilities often cost more than $100,000 per year.&lt;/p&gt;&lt;h3 data-block-key="9056e" id="you-expect-to-live-much-longer-than-the-average-person"&gt;You expect to live much longer than the average person&lt;/h3&gt;&lt;p data-block-key="dduk6"&gt;Healthcare is expensive -- but so is living to age 90. The average 50-year-old is expected to live another 28 to 32 years, according to the Social Security Administration. If you're in great health and have a lot of relatives who lived well into their 80s and beyond, then you may want to plan for a longer retirement than most.&lt;/p&gt;&lt;h3 data-block-key="e3893" id="you-want-to-live-it-up-in-retirement"&gt;You want to live it up in retirement&lt;/h3&gt;&lt;p data-block-key="4uqnb"&gt;Most people spend less money when they retire, because their lives are less active. However, if you plan to travel the world or enjoy other expensive hobbies, then you should aim to pad your retirement savings.&lt;/p&gt;&lt;p data-block-key="2obfc"&gt;&lt;i&gt;Want to ramp up your retirement savings by investing in stocks and getting huge tax breaks?&lt;/i&gt; &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best individual retirement accounts (IRAs) and open a new account today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="hncsk" id="why-you-might-need-less"&gt;Why you might need less&lt;/h2&gt;&lt;p data-block-key="6nm9e"&gt;Not everyone needs six times their salary saved by age 50 to retire in comfort. Here are a few potential reasons why.&lt;/p&gt;&lt;h3 data-block-key="xx9mr" id="you-have-other-streams-of-income"&gt;You have other streams of income&lt;/h3&gt;&lt;p data-block-key="5qss"&gt;The "six times your salary" rule assumes that all your income is coming from your savings and Social Security. If you'll also be earning income from a pension, rental property, or any other source, then you can aim lower.&lt;/p&gt;&lt;h3 data-block-key="docov" id="your-expenses-will-be-much-lower"&gt;Your expenses will be much lower&lt;/h3&gt;&lt;p data-block-key="4c13k"&gt;There are a lot of reasons why you might spend less money in retirement.&lt;/p&gt;&lt;p data-block-key="ab5r1"&gt;If you've paid off your mortgage, or you plan to downsize to a cheaper home, or you plan to live with family, then your housing costs will be lower (or nonexistent).&lt;/p&gt;&lt;p data-block-key="8mnds"&gt;And if you plan to take it easy in retirement, then you may spend a lot less on gas, vacations, and entertainment.&lt;/p&gt;&lt;h3 data-block-key="il15z" id="you-plan-to-work-a-long-time"&gt;You plan to work a long time&lt;/h3&gt;&lt;p data-block-key="9k0r3"&gt;Some people keep working into their 70s and beyond. It's best not to &lt;i&gt;plan&lt;/i&gt; on this, as many people are forced to retire earlier than expected due to health issues, the job market, or other factors. But putting off retirement for a few years can save you a huge sum of money in the long run.&lt;/p&gt;&lt;p data-block-key="dp8qp"&gt;Your Social Security benefits will also be bigger if you hold off on claiming them for a while. They max out when you reach age 70, so you don't want to delay claiming benefits past that age.&lt;/p&gt;&lt;h2 data-block-key="8msh1" id="what-to-do-if-you're-behind"&gt;What to do if you're behind&lt;/h2&gt;&lt;p data-block-key="88mvr"&gt;First of all, don't panic. Millions of Americans don't even save six times their salary by the time they &lt;i&gt;retire&lt;/i&gt;. That said, if you want to maintain your standard of living when you retire, it's time to kick your savings into overdrive.&lt;/p&gt;&lt;p data-block-key="eplqb"&gt;Aim to save at least 20% of your income, preferably in a tax-advantaged retirement account like a 401(k) or &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" target="_blank"&gt;IRA&lt;/a&gt;. When you're 50 or older, these accounts let you deposit more money than younger savers. Take advantage of these "catch-up contributions" and save as much as you possibly can.&lt;/p&gt;&lt;p data-block-key="2770k"&gt;If you've maxed out your 401(k) and/or IRA contributions for the year, you can open a regular &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" target="_blank"&gt;brokerage account&lt;/a&gt; and invest through that.&lt;/p&gt;&lt;p data-block-key="s4gf"&gt;Also make sure your retirement savings aren't all sitting in low-growth investments like bonds or &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" target="_blank"&gt;certificates of deposit&lt;/a&gt;. Ideally, at least half your portfolio will be invested in higher-growth assets like stocks. If you're unsure what to invest in, consider something simple like a broad-market &lt;a href="https://www.fool.com/investing/how-to-invest/index-funds/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" target="_blank"&gt;index fund&lt;/a&gt;. Then you'll have both diversification and higher potential returns.&lt;/p&gt;&lt;p data-block-key="droiv"&gt;Most 50-year-old workers have at least 10 years to keep saving and to ride out any short-term losses in the stock market. Start saving aggressively now, and even if you fall short of your goal, you'll be much better off.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=47e77b5b-0924-437f-9564-0da8d7f2d05e&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=47e77b5b-0924-437f-9564-0da8d7f2d05e&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.&lt;a href="https://www.fool.com/author/2869/"&gt;James McClenathen&lt;/a&gt; has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 14 Feb 2025 07:00:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-how-much-money-you-should-have-in-savings-by-50-how-do-you-compare/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4</guid><category domain="https://www.fool.com/guid">53e8b33a-0cc5-4e1f-87b3-044fb61bd6d4</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>I'm 40 Years Old With $100,000 in My 401(k). Am I on Track to Retire?</title><link>https://www.fool.com/money/banks/articles/im-40-years-old-with-100000-in-my-401k-am-i-on-track-to-retire/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A calculator, pad, and pen against a yellow background" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2F30_WoyGtMS.width-793.png%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: The Motley Fool/Upsplash&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="ung2u"&gt;Reaching 40 years old with $100,000 in a 401(k) is a solid achievement, but if you're on schedule to retire at your goal age depends on factors like your preferred lifestyle, future savings rate, and expected expenses in retirement. Let's break it down.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=643e94fa-bdd6-4ca3-a845-70da1b54f314&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=643e94fa-bdd6-4ca3-a845-70da1b54f314&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;h2 data-block-key="dclwz" id="how-much-should-you-have-saved-by-40"&gt;How much should you have saved by 40?&lt;/h2&gt;&lt;p data-block-key="egn66"&gt;Financial experts often use retirement savings benchmarks to determine whether someone is on track. A common guideline is to have two to three times your salary saved by age 40. That means if you earn $50,000 per year, a $100,000 401(k) balance is on the low end of the target. But if your salary is closer to $80,000 or $100,000, you may need to ramp up your savings.&lt;/p&gt;&lt;p data-block-key="8tv7t"&gt;Of course, these are just general guidelines. The real question is whether current savings habits will lead to a comfortable retirement down the road.&lt;/p&gt;&lt;p data-block-key="6g0hk"&gt;&lt;i&gt;Behind schedule for your retirement savings?&lt;/i&gt; &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Open an IRA today to start building wealth&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="a17td" id="will-dollar100000-grow-enough-by-retirement"&gt;Will $100,000 grow enough by retirement?&lt;/h2&gt;&lt;p data-block-key="7i27g"&gt;You need to make an educated forecast of how much $100,000 will grow by retirement if it's left untouched. The answer depends on investment returns. Historically, the stock market has averaged around 10% annually, but a more conservative estimate of 7% is often used for long-term planning.&lt;/p&gt;&lt;p data-block-key="61lo4"&gt;Here's how $100,000 could grow by age 65:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="fvp6p"&gt;At 10% growth: ~$1.08 million&lt;/li&gt;&lt;li data-block-key="2c2j3"&gt;At 7% growth: ~$542,000&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="96lcq"&gt;While these numbers look promising, most people will need more than this to retire comfortably -- especially if they plan to rely on savings for 20 to 30 years. That's why continuing to contribute to your 401(k) or IRA is crucial to building a solid retirement fund.&lt;/p&gt;&lt;p data-block-key="9b4tm"&gt;&lt;i&gt;Hit your retirement goals by opening a brokerage account today.&lt;/i&gt; &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of best brokers here&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="gt8rq" id="how-much-should-you-be-saving"&gt;How much should you be saving?&lt;/h2&gt;&lt;p data-block-key="79rn7"&gt;If the goal is to retire comfortably, financial planners often recommend saving 15% to 20% of annual income, including employer contributions.&lt;/p&gt;&lt;p data-block-key="30kfs"&gt;For example, if someone age 40 with $100,000 in their 401(k) earns $70,000 per year and contributes 10% of their salary while receiving a 4% employer match, their 401(k) savings would look something like this:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="30enq"&gt;By 50: ~$330,000&lt;/li&gt;&lt;li data-block-key="d7869"&gt;By 60: ~$790,000&lt;/li&gt;&lt;li data-block-key="cmsfq"&gt;By 65: ~$1.1 million-plus&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="67ses"&gt;This assumes a 7% annual return and steady contributions. Increasing the savings rate -- even by just a few percentage points -- could significantly boost retirement funds.&lt;/p&gt;&lt;h2 data-block-key="i7qyt" id="other-factors-to-consider"&gt;Other factors to consider&lt;/h2&gt;&lt;h3 data-block-key="mz778" id="1.-lifestyle-and-retirement-goals"&gt;1. Lifestyle and retirement goals&lt;/h3&gt;&lt;p data-block-key="dqm60"&gt;How much someone needs in retirement depends on lifestyle expectations. A person planning to travel frequently or retire early will need more savings than someone who plans to live modestly in a low-cost area.&lt;/p&gt;&lt;h3 data-block-key="rmth6" id="2.-other-retirement-accounts"&gt;2. Other retirement accounts&lt;/h3&gt;&lt;p data-block-key="9oogm"&gt;A 401(k) isn't the only option for retirement savings. If someone also has an IRA, taxable investment accounts, or rental income, their overall retirement picture could be much stronger.&lt;/p&gt;&lt;h3 data-block-key="nfqrs" id="3.-social-security-benefits"&gt;3. Social security benefits&lt;/h3&gt;&lt;p data-block-key="78mup"&gt;Social Security can supplement retirement savings, but it's unlikely to cover all expenses. The average monthly benefit in 2024 is about $1,900, but actual benefits depend on lifetime earnings.&lt;/p&gt;&lt;h3 data-block-key="lsfpz" id="4.-debt-and-expenses"&gt;4. Debt and expenses&lt;/h3&gt;&lt;p data-block-key="4aitl"&gt;Entering retirement debt free can make a big difference. Paying off a mortgage, credit cards, and other loans before retiring can reduce the amount needed from savings.&lt;/p&gt;&lt;h2 data-block-key="iuquk" id="steps-to-get-on-track"&gt;Steps to get on track&lt;/h2&gt;&lt;p data-block-key="87e0t"&gt;If $100,000 at age 40 isn't quite where someone wants to be, there are ways to catch up:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="4pm15"&gt;&lt;b&gt;Increase contributions:&lt;/b&gt; Boosting 401(k) contributions by 1% to 2% per year can add up significantly over time.&lt;/li&gt;&lt;li data-block-key="9oa44"&gt;&lt;b&gt;Max out employer match:&lt;/b&gt; Not taking full advantage of an employer match is leaving free money on the table.&lt;/li&gt;&lt;li data-block-key="2gu57"&gt;&lt;b&gt;Open an IRA:&lt;/b&gt; A &lt;a href="https://www.fool.com/money/buying-stocks/best-roth-ira/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1" target="_blank"&gt;Roth IRA&lt;/a&gt; or traditional IRA can provide additional tax advantages and investment flexibility.&lt;/li&gt;&lt;li data-block-key="5qhu5"&gt;&lt;b&gt;Consider brokerage accounts:&lt;/b&gt; Taxable investments can supplement retirement savings without the withdrawal restrictions of a 401(k).&lt;/li&gt;&lt;li data-block-key="4b1ao"&gt;&lt;b&gt;Delay retirement if needed:&lt;/b&gt; Working a few extra years can allow more time for savings to grow while increasing Social Security benefits.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="i68f9" id="evaluate-where-you-stand"&gt;Evaluate where you stand&lt;/h2&gt;&lt;p data-block-key="258nu"&gt;A $100,000 401(k) at age 40 is a solid foundation, but whether it's enough depends on future savings and retirement goals. By increasing contributions, minimizing debt, and taking advantage of investment growth, there's still plenty of time to build a comfortable retirement.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a3512254-83af-4209-89de-0f986cee36ed&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a3512254-83af-4209-89de-0f986cee36ed&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 14 Feb 2025 06:30:20 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/im-40-years-old-with-100000-in-my-401k-am-i-on-track-to-retire/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=51db6656-761f-4b58-99a3-9d6207e3e7e1</guid><category domain="https://www.fool.com/guid">51db6656-761f-4b58-99a3-9d6207e3e7e1</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's How to Earn $10,000 With CDs</title><link>https://www.fool.com/money/banks/articles/heres-how-to-earn-10000-with-cds/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young adult calculates their personal finances at the kitchen table using a tablet." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-1321763763_ja5o60L_VGYFhWW.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="qqa5l"&gt;Certificates of deposit (CDs) are one of the safest ways to grow your money. The current yields on CDs are nowhere near the long-term returns of the stock market. However, you can still earn a lot of money with CDs if you invest a large amount -- and your returns are guaranteed.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=23cd4846-6053-4545-bbb2-ef0870a086fb&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=23cd4846-6053-4545-bbb2-ef0870a086fb&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="fo7q"&gt;So what would it take to earn $10,000 by investing in CDs today? It depends on the CD's interest rate, the term, and how much you invest. Let's look at a couple of scenarios and see if CDs are a good place for your money now.&lt;/p&gt;&lt;h2 data-block-key="rkfml" id="5-year-cd"&gt;5-year CD&lt;/h2&gt;&lt;p data-block-key="92te0"&gt;The longer your money is invested, the more it'll grow. So let's assume you invest in a &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/5-year-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" target="_blank"&gt;5-year CD&lt;/a&gt; -- the longest term available at most banks.&lt;/p&gt;&lt;p data-block-key="8fpph"&gt;The best 5-year &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" target="_blank"&gt;CD rates&lt;/a&gt; are around 4.00%. At that rate, you'd need to &lt;b&gt;invest $46,160&lt;/b&gt; to earn $10,000 by the time your 5-year CD matured.&lt;/p&gt;&lt;h2 data-block-key="p430b" id="1-year-cd"&gt;1-year CD&lt;/h2&gt;&lt;p data-block-key="24ohj"&gt;You'd need to invest a lot more money in a &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/best-12-month-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" target="_blank"&gt;1-year CD&lt;/a&gt; to earn $10,000. That said, 1-year CDs have slightly higher APYs than 5-year CDs -- around 4.30% at the high end.&lt;/p&gt;&lt;p data-block-key="emni"&gt;You'd need to &lt;b&gt;invest about $233,000&lt;/b&gt; to earn $10,000 from a 1-year CD paying 4.30%.&lt;/p&gt;&lt;p data-block-key="8553r"&gt;&lt;i&gt;Want to earn the same interest rate as a CD without locking up your money for years?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts, which pay up to 4.50%.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="yzvdt" id="hypothetical:-3.75percent-apy-for-10-years"&gt;Hypothetical: 3.75% APY for 10 years&lt;/h2&gt;&lt;p data-block-key="6s0c0"&gt;You can always reinvest your money in new CDs once the old ones mature. In other words, you can earn $10,000 over a much longer time frame than five years.&lt;/p&gt;&lt;p data-block-key="3b9m3"&gt;We don't know what interest rates will be in the future, but let's assume they drop about 25 basis points (as some experts predict) and then remain stable.&lt;/p&gt;&lt;p data-block-key="a84k"&gt;At a 3.75% APY, you could earn $10,000 over 10 years by &lt;b&gt;investing about $22,500&lt;/b&gt; in a 5-year CD, then moving that money to another 5-year CD once the first one matures.&lt;/p&gt;&lt;h2 data-block-key="vqyic" id="are-cds-even-worth-it"&gt;Are CDs even worth it?&lt;/h2&gt;&lt;p data-block-key="4gcql"&gt;Certificates of deposit make sense if you have a large amount of cash that you need to keep safe for years while earning a low but guaranteed return.&lt;/p&gt;&lt;p data-block-key="bggm2"&gt;For building your wealth, however, you're probably better off investing in the stock market. Since 1957, the U.S. stock market (as measured by the S&amp;P 500 Index) has gained an average of 10% per year.&lt;/p&gt;&lt;p data-block-key="fo3os"&gt;Stock returns fluctuate, and losses are guaranteed to happen sometimes. But if the S&amp;P 500 were to gain 10% per year over the next five years, it would only take an investment of &lt;b&gt;$16,400&lt;/b&gt; to earn an additional $10,000.&lt;/p&gt;&lt;p data-block-key="7m23c"&gt;CDs are great for people who are looking to &lt;b&gt;preserve their wealth, rather than build wealth&lt;/b&gt;. However, most of us will need a higher return than 4% per year to achieve our biggest financial goals, like saving for retirement.&lt;/p&gt;&lt;p data-block-key="4s4h3"&gt;If you're new to stock market investing, consider opening a new &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" target="_blank"&gt;brokerage account&lt;/a&gt; and purchasing a low-fee S&amp;amp;P 500 index fund. You'll instantly be invested in 500 of the biggest, most successful companies in the U.S. And if the stock market's past returns hold up, you'll be on track to earn far more money than you could with any CD.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=27bbf78c-d284-4863-9e61-5bb501b5066c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=27bbf78c-d284-4863-9e61-5bb501b5066c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 14 Feb 2025 06:00:18 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-how-to-earn-10000-with-cds/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=90b62987-3214-4be5-9000-e9e7ca82b2be</guid><category domain="https://www.fool.com/guid">90b62987-3214-4be5-9000-e9e7ca82b2be</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Should You Buy CDs Before Interest Rates Drop Again?</title><link>https://www.fool.com/money/banks/articles/should-you-buy-cds-before-interest-rates-drop-again/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A man reading paperwork at his desk." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FMan_reading_paperwork_at_desk.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="068m7"&gt;The yields on certificates of deposit (CDs) have dropped from last year's highs. In 2024, APYs of 5.00% were easy to come by, while today's &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" target="_blank"&gt;best CD rates&lt;/a&gt; are closer to 4.00%.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f6c40314-16f9-4e1e-9d3b-950f9b166b3c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f6c40314-16f9-4e1e-9d3b-950f9b166b3c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="7aims"&gt;And more rate cuts could be coming in 2025.&lt;/p&gt;&lt;p data-block-key="9lhfj"&gt;The Federal Reserve kept interest rates the same at its January meeting, and we're unlikely to see big changes anytime soon. However, the Fed has suggested that rate cuts are possible, and many experts think they're likely in 2025.&lt;/p&gt;&lt;p data-block-key="7fs8n"&gt;If the federal funds rate drops, then CD yields will follow. Should you lock in an APY of 4.00% or more now?&lt;/p&gt;&lt;h2 data-block-key="vs31s" id="interest-rate-cuts-will-probably-have-little-impact"&gt;Interest rate cuts will probably have little impact&lt;/h2&gt;&lt;p data-block-key="3q1m2"&gt;Let's say the federal funds rate drops by a small amount in 2025, and CD rates do the same. (CD rates don't mirror the federal rate exactly, but they track it pretty closely.)&lt;/p&gt;&lt;p data-block-key="378i6"&gt;Here's how much that could change your total earnings on a 1-year CD.&lt;/p&gt;&lt;div class="ta_table-wrap"&gt;&lt;table class="ta_table"&gt;&lt;thead&gt;&lt;tr&gt;&lt;th&gt;Initial Investment&lt;/th&gt;&lt;th&gt;Earnings at 4.00% APY&lt;/th&gt;&lt;th&gt;Earnings at 3.75% APY&lt;/th&gt;&lt;th&gt;Earnings at 3.50% APY&lt;/th&gt;&lt;/tr&gt;&lt;/thead&gt;&lt;tbody&gt;&lt;tr&gt;&lt;td&gt;$5,000&lt;/td&gt;&lt;td&gt;$200&lt;/td&gt;&lt;td&gt;$187.50&lt;/td&gt;&lt;td&gt;$175&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;$10,000&lt;/td&gt;&lt;td&gt;$400&lt;/td&gt;&lt;td&gt;$375&lt;/td&gt;&lt;td&gt;$350&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;$20,000&lt;/td&gt;&lt;td&gt;$800&lt;/td&gt;&lt;td&gt;$750&lt;/td&gt;&lt;td&gt;$700&lt;/td&gt;&lt;/tr&gt;&lt;/tbody&gt;&lt;/table&gt;&lt;/div&gt;&lt;div class="caption pt--0 c--sec-drkr"&gt;Data source: Author's calculations.&lt;/div&gt;&lt;p data-block-key="2pdl0"&gt;Even if you invest a large amount in CDs, near-term rate cuts will likely have a small effect on your earnings.&lt;/p&gt;&lt;h2 data-block-key="zasoe" id="are-cds-even-worth-it"&gt;Are CDs even worth it?&lt;/h2&gt;&lt;p data-block-key="27eo2"&gt;CDs offer safe, guaranteed returns. They're FDIC insured, so your money is safe. That said, there may be better places for your money.&lt;/p&gt;&lt;h3 data-block-key="bu8go" id="high-yield-savings-accounts-have-similar-rates-and-more-flexibility"&gt;High-yield savings accounts have similar rates and more flexibility&lt;/h3&gt;&lt;p data-block-key="d2vns"&gt;Today's &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" target="_blank"&gt;best savings accounts&lt;/a&gt; offer roughly the same rates as CDs -- around 4.00% or higher in some cases. And unlike CDs, they allow you to deposit and withdraw money at any time.&lt;/p&gt;&lt;p data-block-key="atdpr"&gt;This is why a high-yield savings account is the best place for your emergency fund and any other money you may need on short notice.&lt;/p&gt;&lt;p data-block-key="689ha"&gt;&lt;i&gt;Want to earn 10 times the national average APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and open a new account today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h3 data-block-key="wclqk" id="the-stock-market-offers-much-higher-returns"&gt;The stock market offers much higher returns&lt;/h3&gt;&lt;p data-block-key="f7g17"&gt;Since 1957, the U.S. stock market has gained 10% per year on average (as measured by the S&amp;P 500 Index). When it comes to money you want to invest for long-term growth, you may be better off investing in stocks through an &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" target="_blank"&gt;IRA&lt;/a&gt; or a regular brokerage account.&lt;/p&gt;&lt;p data-block-key="f5254"&gt;You can even invest in the entire S&amp;P 500 at once with an &lt;a href="https://www.fool.com/investing/how-to-invest/index-funds/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" target="_blank"&gt;index fund&lt;/a&gt;. Then you'll have a portfolio of 500 of the biggest companies in the U.S.&lt;/p&gt;&lt;p data-block-key="ffsjv"&gt;Just be sure to only invest money that you won't need for at least three years. That way you have time to ride out any near-term dips in the stock market. That means you're less likely to be forced to sell stocks at a loss because you need money right away.&lt;/p&gt;&lt;h2 data-block-key="qyezu" id="don't-make-hasty-decisions-with-your-money"&gt;Don't make hasty decisions with your money&lt;/h2&gt;&lt;p data-block-key="8n2lm"&gt;CDs are a decent investment, but you shouldn't rush to buy them just because interest rates may drop this year. Make sure you understand how they work and whether they fit into your financial plan. You may find that you have better options.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f4003d7f-7feb-4857-ad18-d280d617d0ad&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f4003d7f-7feb-4857-ad18-d280d617d0ad&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 11 Feb 2025 07:00:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/should-you-buy-cds-before-interest-rates-drop-again/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=dc80ee7b-c849-442e-ae9f-c40dc50f032c</guid><category domain="https://www.fool.com/guid">dc80ee7b-c849-442e-ae9f-c40dc50f032c</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Here's What Happens When You Only Use Credit Cards</title><link>https://www.fool.com/money/credit-cards/articles/heres-what-happens-when-you-use-only-credit-cards/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A woman sitting at a patio table and paying a waitress with her credit card." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fwoman_paying_waitress_with_credit_card.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="6iekc"&gt;&lt;a href="https://www.fool.com/money/credit-cards/best-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034" target="_blank"&gt;The best credit cards&lt;/a&gt; have a lot of perks -- cash back, travel rewards, purchase protection, and more. But what happens if you rely only on credit cards for &lt;i&gt;every&lt;/i&gt; purchase? While swiping or tapping your way through life might sound convenient (and rewarding), there are some potential downsides to consider.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=abf387d6-a3ab-48a6-8898-3d95f9d03a86&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=abf387d6-a3ab-48a6-8898-3d95f9d03a86&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="9kdei"&gt;Let's break down the pros, cons, and what you should know if you're thinking about going all-in on plastic.&lt;/p&gt;&lt;h2 data-block-key="0ebyh" id="the-upside-of-using-only-credit-cards"&gt;The upside of using only credit cards&lt;/h2&gt;&lt;p data-block-key="ra7a"&gt;If used responsibly, credit cards can be a powerful financial tool. Here are some of the benefits of going cashless.&lt;/p&gt;&lt;h3 data-block-key="mwady" id="1.-you-can-earn-rewards-on-everything"&gt;1. You can earn rewards on everything&lt;/h3&gt;&lt;p data-block-key="brgr5"&gt;Most credit cards offer some type of rewards, whether it's cash back, points, or travel miles. If you're using a card for every purchase, those rewards can add up quickly. A great cash back card can effectively give you a discount on all or most of your spending.&lt;/p&gt;&lt;p data-block-key="klgn"&gt;&lt;i&gt;Never pay full price for a flight again.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of best travel credit cards now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h3 data-block-key="u0vv4" id="2.-you'll-have-better-fraud-protection"&gt;2. You'll have better fraud protection&lt;/h3&gt;&lt;p data-block-key="8skkb"&gt;Credit cards come with strong fraud protection that debit cards don't always match. If someone steals your debit card info, they can instantly start draining your bank account. But with a credit card, fraudulent transactions can usually be reversed, and you're not on the hook while the bank investigates.&lt;/p&gt;&lt;h3 data-block-key="jxlwh" id="3.-you-can-build-(and-improve)-your-credit-score"&gt;3. You can build (and improve) your credit score&lt;/h3&gt;&lt;p data-block-key="f1c41"&gt;Credit card usage is a key factor in your credit score. If you're consistently making purchases and paying off your balance on time, you'll build a solid payment history, which can boost your credit score over time. A higher score can help you qualify for better interest rates on loans, mortgages, and even new credit cards.&lt;/p&gt;&lt;h2 data-block-key="wzqjh" id="the-downsides-of-going-credit-only"&gt;The downsides of going credit-only&lt;/h2&gt;&lt;p data-block-key="c42sn"&gt;While the benefits are compelling, using only credit cards isn't perfect. Here's where things can get tricky.&lt;/p&gt;&lt;h3 data-block-key="rqsk1" id="1.-it's-easy-to-overspend"&gt;1. It's easy to overspend&lt;/h3&gt;&lt;p data-block-key="d0st4"&gt;Studies show that people tend to spend more when using credit cards instead of cash. Swiping a card doesn't feel the same as handing over physical money, making it easier to justify impulse purchases or overspending beyond your budget.&lt;/p&gt;&lt;h3 data-block-key="ts9wt" id="2.-you-might-rack-up-interest-charges"&gt;2. You might rack up interest charges&lt;/h3&gt;&lt;p data-block-key="2tu8i"&gt;If you don't pay your balance in full every month, interest can pile up fast. Credit card APRs (annual percentage rates) are often 15% to 25% or higher, meaning even a small balance can become costly if left unpaid. If you find yourself needing some help getting rid of an outstanding balance, consider one of the &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034" target="_blank"&gt;best balance transfer cards&lt;/a&gt; that our experts have identified. You can transfer your balance to a new card and get up to 21 months of interest-free payments on your transferred debt.&lt;/p&gt;&lt;h3 data-block-key="98e8j" id="3.-not-every-place-accepts-credit-cards"&gt;3. Not every place accepts credit cards&lt;/h3&gt;&lt;p data-block-key="3vi5l"&gt;Some businesses -- especially small shops, local restaurants, and certain service providers -- don't accept credit cards or charge extra fees for using one. If you don't carry cash or a backup payment method, you could find yourself in a tight spot.&lt;/p&gt;&lt;h3 data-block-key="uuxs6" id="4.-credit-card-companies-can-lower-your-limit"&gt;4. Credit card companies can lower your limit&lt;/h3&gt;&lt;p data-block-key="difls"&gt;If you rely entirely on credit and your card issuer lowers your limit (which they can do at any time), it could leave you scrambling. A lower limit also means a higher credit utilization ratio, which can hurt your credit score.&lt;/p&gt;&lt;h2 data-block-key="32t4p" id="should-you-use-only-credit-cards"&gt;Should you use only credit cards?&lt;/h2&gt;&lt;p data-block-key="2s75u"&gt;It depends. If you're disciplined with spending, always pay your balance in full, and want to maximize rewards, using only credit cards can work in your favor. However, if you struggle with overspending, carry a balance, or want the flexibility of using cash when needed, it might be best to mix things up.&lt;/p&gt;&lt;p data-block-key="b3ab"&gt;A balanced approach -- where you use credit cards for most purchases but keep a debit card or some cash on hand for certain situations -- might be the best of both worlds.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=76b001d8-4b13-48b1-9080-98eafb6f0075&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=76b001d8-4b13-48b1-9080-98eafb6f0075&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 11 Feb 2025 06:30:23 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/heres-what-happens-when-you-use-only-credit-cards/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=674c975f-6ecc-43f9-a8ab-d6cb84347034</guid><category domain="https://www.fool.com/guid">674c975f-6ecc-43f9-a8ab-d6cb84347034</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>How High Could CD Rates Go in 2025?</title><link>https://www.fool.com/money/banks/articles/how-high-could-cd-rates-go-2025/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Young man pausing from using his laptop to look at a calendar." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FYoung_man_pausing_from_using_his_laptop_to_loo.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="s6b91"&gt;&lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306" target="_blank"&gt;Certificate of deposit (CD) rates&lt;/a&gt; have been on a rollercoaster ride in recent years, hitting historic lows during the pandemic and then climbing sharply as the Federal Reserve hiked interest rates to combat inflation. If you're wondering how high CD rates could go in 2025, you're not alone. The answer depends on several economic factors, including Fed policy, inflation trends, and the broader financial market.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=67df5c81-2f5c-488a-988b-690c9680c4b9&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=67df5c81-2f5c-488a-988b-690c9680c4b9&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;h2 data-block-key="p4kq0" id="a-look-back:-how-we-got-here"&gt;A look back: How we got here&lt;/h2&gt;&lt;p data-block-key="6gfcs"&gt;CD rates tend to follow the Fed's moves. When the Fed raises interest rates, banks typically pass those increases along to savers by offering higher returns on CDs, high-yield savings accounts, and money market accounts. In 2022 and 2023, the Fed aggressively raised rates to curb inflation, leading to some of the best CD yields in decades.&lt;/p&gt;&lt;p data-block-key="des9g"&gt;By early 2024, top CDs were offering APYs of 5.00% to 6.00% -- numbers that seemed unthinkable just a few years prior. Currently, the best CDs offer over 4.00% APY. But with inflation cooling and the Fed signaling more potential rate cuts, the big question is: Will these high CD rates come back, or will rates continue to slide?&lt;/p&gt;&lt;p data-block-key="5n2pl"&gt;&lt;i&gt;Lock in CD rates now, as experts think they'll fall in 2025.&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306" target="_blank"&gt;&lt;i&gt;Check out our list of the best CD accounts now&lt;/i&gt;&lt;/a&gt;&lt;i&gt;.&lt;/i&gt;&lt;/p&gt;&lt;h2 data-block-key="m7jop" id="what-could-happen-to-cd-rates-in-2025"&gt;What could happen to CD rates in 2025?&lt;/h2&gt;&lt;p data-block-key="6je8p"&gt;The trajectory of CD rates in 2025 will largely hinge on what the Fed does with interest rates. Here are three possible scenarios:&lt;/p&gt;&lt;h3 data-block-key="vqmfa" id="1.-the-fed-cuts-rates-and-cd-yields-drop"&gt;1. The Fed cuts rates, and CD yields drop&lt;/h3&gt;&lt;p data-block-key="fu5fu"&gt;Some economists predict that the Fed will cut interest rates in 2025 and beyond as inflation eases. If that happens, CD rates will likely decline. The biggest drops would be in long-term CDs, as banks wouldn't need to offer sky-high rates to attract deposits.&lt;/p&gt;&lt;h3 data-block-key="y2b4c" id="2.-the-fed-holds-steady-and-cd-rates-remain-where-they-are"&gt;2. The Fed holds steady, and CD rates remain where they are&lt;/h3&gt;&lt;p data-block-key="9q681"&gt;If inflation remains somewhat sticky, the Fed could hold interest rates at current levels longer than expected. In this scenario, CD rates might hover around their current highs, with top banks offering APYs of 4.00% or more for the best deals.&lt;/p&gt;&lt;h3 data-block-key="e0yyk" id="3.-the-unexpected-happens-and-rates-climb-higher"&gt;3. The unexpected happens, and rates climb higher&lt;/h3&gt;&lt;p data-block-key="bp0l1"&gt;While unlikely, there's always a chance that inflation picks back up, putting pressure on the Fed to raise rates. If that happens, CD rates could move up a little more, though probably not dramatically.&lt;/p&gt;&lt;h2 data-block-key="yb2da" id="should-you-consider-a-high-yield-savings-account-instead"&gt;Should you consider a high-yield savings account instead?&lt;/h2&gt;&lt;p data-block-key="3ovlf"&gt;CDs aren't the only way to earn a solid return on your cash. The best high-yield savings accounts offer APYs above 4.00% right now without losing access to your money for months or years like a CD.&lt;/p&gt;&lt;p data-block-key="6a8ou"&gt;If you were thinking a CD was right for you, &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306" target="_blank"&gt;check out the best high-yield savings accounts&lt;/a&gt; before making up your mind.&lt;/p&gt;&lt;h2 data-block-key="1opzy" id="what-should-savers-do-now"&gt;What should savers do now?&lt;/h2&gt;&lt;p data-block-key="1a49a"&gt;If you're trying to time the market for the best CD rates, here are a few strategies to consider:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="8dlsl"&gt;&lt;b&gt;Lock in high rates now:&lt;/b&gt; If you find a CD offering an APY of 4.00% or more, locking in that rate for a year or longer might be a smart move, especially if you think rates will fall. &lt;b&gt;Right now, you can secure a 4.10% APY for &lt;/b&gt; &lt;b&gt;2 Years with Discover® Bank CD. Don’t miss your chance to lock in this competitive rate—&lt;/b&gt;&lt;a class="short-code-generated-link" data-action="offer_click_apply" data-click-section="paragraph" data-slug="discover-cd-24" href="/money/offers/cds/discover-cd-60/" rel="sponsored noopener"&gt;&lt;b&gt;open your CD today.&lt;/b&gt;&lt;/a&gt; &lt;/li&gt;&lt;li data-block-key="cktjm"&gt;&lt;b&gt;Consider a CD ladder:&lt;/b&gt; This strategy involves spreading your money across multiple CDs with different maturity dates. That way, you're not stuck with a low rate if rates go up, but you still get some security if rates drop.&lt;/li&gt;&lt;li data-block-key="ajlu3"&gt;&lt;b&gt;Watch the Fed's moves:&lt;/b&gt; If the Fed signals a series of rate cuts, expect CD rates to follow. Stay informed so you can lock in rates before they drop.&lt;/li&gt;&lt;li data-block-key="7ufmq"&gt;&lt;b&gt;Opt for a high-yield savings account:&lt;/b&gt; If you want similar rates and no long-term commitment, an HYSA might be the perfect middle ground.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="2quun"&gt;CD rates in 2025 will depend heavily on the Fed's decisions and the broader economy. While a decline in rates is likely, there's still uncertainty about how quickly and how much they'll fall. If you're a saver, now is a great time to take advantage of high yields before they potentially disappear.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=16508039-b556-4ed5-b9f8-9a4671216a3f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=16508039-b556-4ed5-b9f8-9a4671216a3f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Discover Financial Services is an advertising partner of Motley Fool Money. The Motley Fool recommends Discover Financial Services. The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 11 Feb 2025 06:00:24 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/how-high-could-cd-rates-go-2025/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=e130e2ff-8021-4d3a-b8a3-5d518b13f306</guid><category domain="https://www.fool.com/guid">e130e2ff-8021-4d3a-b8a3-5d518b13f306</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's What Happens When You Pay Your Credit Card Bill Every Week</title><link>https://www.fool.com/money/credit-cards/articles/heres-what-happens-when-you-pay-your-card-bill-every-week/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=fbad4462-b49a-462f-9a89-e30c051c18e0</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Person with laptop, bills, paperwork" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-1438452529-1200x800-5b2df79_U9258Q.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="nvd4t"&gt;Most people pay their credit card bill once a month, but you're allowed to pay more frequently. Technically you can pay your credit card bill as often as you want. Some people prefer to pay bi-weekly or even weekly.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c680f641-8a47-4dc8-8eea-433dbbb52921&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=fbad4462-b49a-462f-9a89-e30c051c18e0" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c680f641-8a47-4dc8-8eea-433dbbb52921&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=fbad4462-b49a-462f-9a89-e30c051c18e0" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="5v0m6"&gt;While it might sound unnecessary, making weekly payments can actually boost your credit score and have some other financial benefits, which I'll discuss further below.&lt;/p&gt;&lt;h2 data-block-key="j5ygq" id="1.-your-credit-utilization-drops-(which-can-boost-your-credit-score)"&gt;1. Your credit utilization drops (which can boost your credit score)&lt;/h2&gt;&lt;p data-block-key="f034o"&gt;One of the biggest factors affecting your credit score is credit utilization -- which is all of your outstanding debts divided by your total available credit. Ideally, you want to keep this below 30%, and for the best scores, under 10%.&lt;/p&gt;&lt;p data-block-key="34t2n"&gt;When you make weekly payments, your balance stays lower throughout the month, which means your credit utilization is constantly low -- including when your card issuer reports your balance to the credit bureaus.&lt;/p&gt;&lt;p data-block-key="e8uj6"&gt;Keeping your credit utilization ratio low raises your credit score, helping you qualify for some of &lt;a href="https://www.fool.com/money/credit-cards/best-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=fbad4462-b49a-462f-9a89-e30c051c18e0" target="_blank"&gt;the best credit cards&lt;/a&gt; on the market.&lt;/p&gt;&lt;h2 data-block-key="z1oo0" id="2.-you'll-pay-less-in-interest"&gt;2. You'll pay less in interest&lt;/h2&gt;&lt;p data-block-key="db08n"&gt;If you don't pay your full balance each month, you'll pay interest on your remaining balance. Interest is calculated daily based on your average balance -- so the sooner you make a payment, the lower your balance and the less interest you'll be charged.&lt;/p&gt;&lt;p data-block-key="2dm7i"&gt;For example, if you have a $2,000 balance and only pay at the end of the month, interest accrues on the full amount. But if you make $500 payments each week, your average balance is much lower, reducing the interest charged.&lt;/p&gt;&lt;p data-block-key="a5ue6"&gt;&lt;i&gt;Never pay full price for a flight again.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=fbad4462-b49a-462f-9a89-e30c051c18e0" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best travel rewards credit cards now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="5qc4v" id="3.-you-build-better-money-habits"&gt;3. You build better money habits&lt;/h2&gt;&lt;p data-block-key="541n8"&gt;Paying your credit card bill every week forces you to stay on top of your spending. It's easy to swipe your card and forget about it until the statement arrives, but with weekly payments, you're actively checking your balance and keeping track of expenses.&lt;/p&gt;&lt;p data-block-key="fuq64"&gt;This can help you:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="921ok"&gt;Avoid overspending since you're more aware of your purchases.&lt;/li&gt;&lt;li data-block-key="72rlk"&gt;Stay within budget by treating your card like a debit card.&lt;/li&gt;&lt;li data-block-key="bmlj0"&gt;Catch fraudulent charges faster by reviewing your transactions weekly.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="2y42p" id="4.-you'll-never-miss-a-payment"&gt;4. You'll never miss a payment&lt;/h2&gt;&lt;p data-block-key="1teka"&gt;One late payment can drop your credit score by 50-plus points and result in hefty late fees. By paying every week, you're reducing the risk of forgetting a payment and ensuring your account stays in good standing.&lt;/p&gt;&lt;p data-block-key="3sk67"&gt;If you're forgetful or have multiple credit cards, setting up weekly autopay can be a game-changer.&lt;/p&gt;&lt;h2 data-block-key="of60i" id="do-you-need-to-pay-your-credit-card-bill-weekly"&gt;Do you need to pay your credit card bill weekly?&lt;/h2&gt;&lt;p data-block-key="dpqu9"&gt;Weekly payments can be a great strategy for:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="a4fh6"&gt;People working on improving their credit score by lowering utilization.&lt;/li&gt;&lt;li data-block-key="7i4cq"&gt;Anyone trying to avoid high interest charges on carried balances.&lt;/li&gt;&lt;li data-block-key="1140r"&gt;Budget-conscious spenders who want to keep better track of their spending.&lt;/li&gt;&lt;li data-block-key="b4qh1"&gt;Those who have missed payments in the past and want to build consistency.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="26bld"&gt;However, if you always pay your balance in full each month and are already managing your credit well, switching to weekly payments may not be necessary.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=e078b501-2dae-4654-babe-7e3b5b37b0ef&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=fbad4462-b49a-462f-9a89-e30c051c18e0" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=e078b501-2dae-4654-babe-7e3b5b37b0ef&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=fbad4462-b49a-462f-9a89-e30c051c18e0" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 11 Feb 2025 05:30:20 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/heres-what-happens-when-you-pay-your-card-bill-every-week/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=fbad4462-b49a-462f-9a89-e30c051c18e0</guid><category domain="https://www.fool.com/guid">fbad4462-b49a-462f-9a89-e30c051c18e0</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>You Might Not Realize What Happens When You Max Out Your Credit Card</title><link>https://www.fool.com/money/credit-cards/articles/you-might-not-realize-what-happens-when-you-max-out-your-card/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young adult pays for a shopping purchase with a credit card." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-1247884397_LDFcviI.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="sh5v5"&gt;Believe it or not, maxing out your &lt;a href="https://www.fool.com/money/credit-cards/best-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c" target="_blank"&gt;credit card&lt;/a&gt; isn't a bad thing -- if you pay off the full balance right away. However, failing to pay off a maxed-out credit card immediately can cause you huge problems.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=6a378440-ce0b-42db-9532-90cdebaa6e82&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=6a378440-ce0b-42db-9532-90cdebaa6e82&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="8e4l8"&gt;We all know your card may be declined if you try to make a purchase that would put you over the spending limit. That can be embarrassing, and it can force you to use cash or another credit card (which racks up more debt) to cover your expenses.&lt;/p&gt;&lt;p data-block-key="bqpb4"&gt;But there are other, bigger consequences you might not know about.&lt;/p&gt;&lt;h2 data-block-key="tkzzl" id="1.-you-could-go-over-your-spending-limit"&gt;1. You could go over your spending limit&lt;/h2&gt;&lt;p data-block-key="9goqe"&gt;Some cards allow you to spend more than your credit limit -- and this is even worse than having a purchase declined.&lt;/p&gt;&lt;p data-block-key="co2bq"&gt;Cards that allow over-limit spending require you to opt into it; if you don't, then you cannot exceed your spending limit. But if you've opted in, and you go over your limit, then you may be charged an over-limit penalty. This fee is usually $25 to $35, but it can be as high as the amount by which you exceeded your limit.&lt;/p&gt;&lt;p data-block-key="6ibs4"&gt;You may also be hit with penalty APRs -- the highest possible interest rate your credit card can charge. Even if you start making on-time payments right away, this penalty APR may last for up to six months.&lt;/p&gt;&lt;p data-block-key="ah6j0"&gt;&lt;i&gt;Need help paying off a large credit card balance?&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best balance transfer credit cards and see if you could get a 0% intro APR for 12 months or longer.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="dvxh3" id="2.-you-could-be-forced-to-pay-a-higher-minimum-or-pay-sooner"&gt;2. You could be forced to pay a higher minimum -- or pay sooner&lt;/h2&gt;&lt;p data-block-key="7psk"&gt;Your minimum payment and due date are not set in stone. If you have a maxed-out card, then the issuer may demand a higher minimum payment and/or ask you to make a payment immediately.&lt;/p&gt;&lt;h2 data-block-key="j493q" id="3.-your-credit-limit-may-be-decreased"&gt;3. Your credit limit may be decreased&lt;/h2&gt;&lt;p data-block-key="45lkf"&gt;If you regularly max out your credit card without paying off the full balance, then your card issuer may decide that you can't handle your current spending limit. Your credit limit may be decreased at any time, and this can hurt your credit score.&lt;/p&gt;&lt;p data-block-key="a15p2"&gt;Your credit utilization ratio is a major factor in your credit score. It's the amount you owe divided by your total credit limit -- and the lower it is, the better.&lt;/p&gt;&lt;p data-block-key="4olpt"&gt;If you have a $10,000 credit limit and an outstanding balance of $6,000, then your credit utilization ratio is 60%. If your credit limit is lowered to $8,000, then your credit utilization will jump to 75%. This will almost immediately hurt your credit score.&lt;/p&gt;&lt;h2 data-block-key="g5v4k" id="4.-your-credit-score-could-plummet"&gt;4. Your credit score could plummet&lt;/h2&gt;&lt;p data-block-key="2vns"&gt;Most credit card issuers report info about your account -- including your balance -- to the credit bureaus on your statement closing date. If your credit card is maxed out at that time, then your credit utilization ratio (for that card, at least) will be 100%. And that's &lt;i&gt;very&lt;/i&gt; bad for your score.&lt;/p&gt;&lt;p data-block-key="8mkch"&gt;A sudden spike in your credit utilization ratio can cause your credit score to drop by double digits.&lt;/p&gt;&lt;h2 data-block-key="6fiki" id="what-to-do-if-your-credit-card-is-maxed-out"&gt;What to do if your credit card is maxed out&lt;/h2&gt;&lt;p data-block-key="b6v9b"&gt;Consider a maxed-out credit card your No. 1 financial priority. The APR you'll pay on your outstanding balance will eat up your income and put you behind on every financial goal. If you find yourself with a maxed-out card, take the following steps.&lt;/p&gt;&lt;h3 data-block-key="sile9" id="stop-using-the-card-immediately"&gt;Stop using the card immediately&lt;/h3&gt;&lt;p data-block-key="fq211"&gt;Take it out of your wallet and lock it away. Remove your card info from apps and websites like Amazon. Make sure it's not your automatic payment option for recurring payments.&lt;/p&gt;&lt;h3 data-block-key="oc0pl" id="cut-every-unnecessary-expense"&gt;Cut every unnecessary expense&lt;/h3&gt;&lt;p data-block-key="cd4sj"&gt;Look through your payment history for this card and any other card you may have. Odds are there are several expenses you can reduce or get rid of altogether. You may even be paying for services and subscriptions you'd completely forgotten about.&lt;/p&gt;&lt;h3 data-block-key="opzw6" id="look-for-a-balance-transfer-card"&gt;Look for a balance transfer card&lt;/h3&gt;&lt;p data-block-key="c34cn"&gt;Balance transfer cards allow you to move your existing credit card balances to a new card, which charges &lt;a href="https://www.fool.com/money/credit-cards/best-zero-interest-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c" target="_blank"&gt;0% APR for a limited time&lt;/a&gt; -- typically 12 to 21 months. For that period, you won't rack up additional interest charges, so there will be more room in your budget to pay down your balance.&lt;/p&gt;&lt;p data-block-key="eqs43"&gt;You'll typically have to pay a fee of 3% to 5% of the amount transferred when you open the card. And once the 0% APR period ends, a high interest rate will be applied to any outstanding balance. Do your best to pay it off entirely before that happens.&lt;/p&gt;&lt;h3 data-block-key="hokf7" id="ask-your-credit-card-company-for-help"&gt;Ask your credit card company for help&lt;/h3&gt;&lt;p data-block-key="7lrhv"&gt;Finally, it doesn't hurt to ask your credit card issuer for a little breathing room. It's possible they'll help you out by waiving some fees or lowering your interest rate -- especially if you're having financial difficulties that are outside your control.&lt;/p&gt;&lt;p data-block-key="8qts5"&gt;Having a maxed-out credit card isn't the end of the line. With the proper steps and attention to the issue, you'll be able to get back on the right track with your credit.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=72fc6e74-64f9-434a-8b8e-5ab85444b8cc&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=72fc6e74-64f9-434a-8b8e-5ab85444b8cc&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. &lt;a href="https://www.fool.com/author/2869/"&gt;James McClenathen&lt;/a&gt; has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 10 Feb 2025 07:00:38 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/you-might-not-realize-what-happens-when-you-max-out-your-card/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=0ecc8f17-2266-4171-bc51-541f145e038c</guid><category domain="https://www.fool.com/guid">0ecc8f17-2266-4171-bc51-541f145e038c</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>3 Perks of Keeping a Credit Card Open for 10 Years</title><link>https://www.fool.com/money/credit-cards/articles/3-perks-of-keeping-a-credit-card-open-for-10-years/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Mature woman hold credit card thoughtfully while using her laptop" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FMature_woman_hold_credit_card_thoughtfully_whi.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="4kywp"&gt;Your 10-year cardholder anniversary isn't an extra-special milestone. Your card company won't send you a pair of tin cufflinks or diamond earrings.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=61c4d760-26e0-4d3e-b16e-e45ddb082fe2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=61c4d760-26e0-4d3e-b16e-e45ddb082fe2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="4q9ae"&gt;However, keeping a &lt;a href="https://www.fool.com/money/credit-cards/best-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497" target="_blank"&gt;credit card&lt;/a&gt; open for &lt;i&gt;at least&lt;/i&gt; that long can have several benefits -- even if you don't really use the card anymore.&lt;/p&gt;&lt;h2 data-block-key="kwfo8" id="1.-it-increases-your-length-of-credit-history"&gt;1. It increases your length of credit history&lt;/h2&gt;&lt;p data-block-key="2ruq1"&gt;The length of your credit history is the third-biggest factor in your FICO® Score. It includes both the age of your oldest credit account and the average age of all your accounts. The older, the better.&lt;/p&gt;&lt;p data-block-key="pql7"&gt;If you close a credit card you've had for years, then your average account age -- and therefore your FICO® Score -- could drop by quite a lot. If you no longer use the card, consider keeping it open anyway, so long as it doesn't charge a high annual fee. Just make a small purchase once a month or so to make sure the card isn't closed due to inactivity.&lt;/p&gt;&lt;p data-block-key="efmjp"&gt;My suggestion: Use the card as your automatic payment option for a streaming service or other recurring bill.&lt;/p&gt;&lt;p data-block-key="a5f3k"&gt;&lt;i&gt;Want a credit card that will give you generous rewards for years to come?&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best credit cards to find your next "forever" card.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="2mkwx" id="2.-you-might-get-better-terms-from-your-card-issuer"&gt;2. You might get better terms from your card issuer&lt;/h2&gt;&lt;p data-block-key="3sgsd"&gt;Credit card issuers love a longtime customer in good standing. If you've made on-time payments for 10 years running, then you have some leverage to ask for better terms, like:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="8i2l5"&gt;A higher credit limit&lt;/li&gt;&lt;li data-block-key="adtoc"&gt;A lower APR&lt;/li&gt;&lt;li data-block-key="f33f1"&gt;An annual fee waiver (don't expect to get this more than once)&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="a336t"&gt;You'll also have better odds of being approved for an upgrade to a better card, like a premium &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497" target="_blank"&gt;travel rewards card&lt;/a&gt;.&lt;/p&gt;&lt;h2 data-block-key="4699d" id="3.-it-helps-keep-your-credit-utilization-low"&gt;3. It helps keep your credit utilization low&lt;/h2&gt;&lt;p data-block-key="884c5"&gt;Your credit utilization ratio is the percentage of your available credit that you're using. This is a huge part of your FICO® Score. It's best to keep your utilization below 30%, and the lower, the better.&lt;/p&gt;&lt;p data-block-key="7selq"&gt;If you close a credit card, then your available credit will drop -- and so will your credit score.&lt;/p&gt;&lt;p data-block-key="7608d"&gt;Here's an example:&lt;/p&gt;&lt;div class="ta_table-wrap"&gt;&lt;table class="ta_table"&gt;&lt;thead&gt;&lt;tr&gt;&lt;th&gt;Scenario&lt;/th&gt;&lt;th&gt;Total Credit Limit&lt;/th&gt;&lt;th&gt;Amount Owed&lt;/th&gt;&lt;th&gt;Utilization Ratio&lt;/th&gt;&lt;/tr&gt;&lt;/thead&gt;&lt;tbody&gt;&lt;tr&gt;&lt;td&gt;With old card&lt;/td&gt;&lt;td&gt;$10,000&lt;/td&gt;&lt;td&gt;$2,000&lt;/td&gt;&lt;td&gt;20%&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;Without old card&lt;/td&gt;&lt;td&gt;$5,000&lt;/td&gt;&lt;td&gt;$2,000&lt;/td&gt;&lt;td&gt;40%&lt;/td&gt;&lt;/tr&gt;&lt;/tbody&gt;&lt;/table&gt;&lt;/div&gt;&lt;div class="caption pt--0 c--sec-drkr"&gt;Data source: Author's calculations.&lt;/div&gt;&lt;h2 data-block-key="qc0uu" id=""&gt;When should you close a credit card?&lt;/h2&gt;&lt;p data-block-key="fbtj6"&gt;Despite the benefits of keeping a credit card open as long as possible, there are some good reasons to close a card, too:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="1r2i5"&gt;&lt;b&gt;High annual fees.&lt;/b&gt; Paying hundreds of dollars every year for a card you don't want isn't worth it.&lt;/li&gt;&lt;li data-block-key="ai4qm"&gt;&lt;b&gt;You're tempted to overspend.&lt;/b&gt; If you have a history of charging more than you're able to pay back every month, then it may be best to drop at least one credit card and rely on a debit card more.&lt;/li&gt;&lt;li data-block-key="4b5v3"&gt;&lt;b&gt;There won't be a big impact on your credit score:&lt;/b&gt; If you've had several cards open for 10 years or more, and/or your credit utilization is very low, then closing one card won't make a big difference in your FICO® Score.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="92m6o"&gt;It works to the advantage of most people to keep credit cards open for 10 years or longer, but make sure to assess your personal credit situation before making a decision about the fate of your card.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=2ffb5884-5365-4a8e-b074-a6663d0bbea2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=2ffb5884-5365-4a8e-b074-a6663d0bbea2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 10 Feb 2025 06:30:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/3-perks-of-keeping-a-credit-card-open-for-10-years/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=2a5d46a0-e9b7-41a0-9f55-b2513d1c3497</guid><category domain="https://www.fool.com/guid">2a5d46a0-e9b7-41a0-9f55-b2513d1c3497</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>4 Traits of Americans With a Perfect 850 Credit Score</title><link>https://www.fool.com/money/credit-cards/articles/4-traits-of-americans-with-perfect-850-credit-score/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A man pumping his fist in excitement while sitting on his couch and looking at something on his phone." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fhappy_man_with_phone_pumping_fist_dW9w61Y.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="8bf2v"&gt;A perfect 850 credit score might seem impossible to achieve, but plenty of Americans have hit this milestone. While you don't need a perfect score to get the &lt;a href="https://www.fool.com/money/credit-cards/best-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239" target="_blank"&gt;best credit cards&lt;/a&gt; and mortgage terms, those who reach 850 tend to share a few key habits that set them apart.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d5204f6f-6971-4f22-8100-00175e63b645&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d5204f6f-6971-4f22-8100-00175e63b645&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="3e3bv"&gt;If you're aiming to improve your credit -- or just curious about what it takes -- here are four common traits of people who have a perfect credit score.&lt;/p&gt;&lt;h2 data-block-key="cyvgp" id="1.-they-always-pay-on-time"&gt;1. They always pay on time&lt;/h2&gt;&lt;p data-block-key="chtft"&gt;The biggest factor in your credit score is payment history, making up 35% of your FICO® Score. People with an 850 credit score never miss a payment -- whether it's a credit card, mortgage, or utility bill.&lt;/p&gt;&lt;p data-block-key="2sio3"&gt;Even one late payment can knock your score down, but it's important to note that most creditors won't report your late payment until it's 30 days or more past due. That means if you're only a few days or a couple of weeks late, your creditor may not report it to the credit bureaus.&lt;/p&gt;&lt;p data-block-key="f5e5"&gt;To avoid late payments:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="8rvb3"&gt;Set up autopay to ensure bills are never missed.&lt;/li&gt;&lt;li data-block-key="6grih"&gt;Use payment reminders or calendar alerts.&lt;/li&gt;&lt;li data-block-key="fd6iu"&gt;Pay early when possible to stay ahead of due dates.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="8q4me"&gt;&lt;i&gt;Never pay full price for a flight again.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of best travel credit cards now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;i&gt;.&lt;/i&gt;&lt;/p&gt;&lt;h2 data-block-key="ijw58" id="2.-they-keep-credit-card-balances-low"&gt;2. They keep credit card balances low&lt;/h2&gt;&lt;p data-block-key="7s7a6"&gt;Another major credit score factor is credit utilization. That's the percentage of all your available credit divided by your total outstanding debts. Those with an 850 credit score keep their utilization below 10%, even though the general rule of thumb is staying under 30%.&lt;/p&gt;&lt;p data-block-key="4ltj"&gt;For example, if they have a $10,000 credit limit, they make sure their balance stays below $1,000 -- normally paying it off in full each month.&lt;/p&gt;&lt;p data-block-key="cohpn"&gt;If you're trying to have a perfect credit score, don't be afraid to open a &lt;a href="https://www.fool.com/money/credit-cards/best-high-limit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239" target="_blank"&gt;high-limit credit card&lt;/a&gt; or ask your existing card issuers to extend your credit limits. That will increase your available credit and lower your credit utilization ratio.&lt;/p&gt;&lt;h2 data-block-key="kb7yi" id="3.-they-have-a-long-credit-history"&gt;3. They have a long credit history&lt;/h2&gt;&lt;p data-block-key="aqch5"&gt;Credit age makes up 15% of your FICO® Score, and people with an 850 score typically have decades of responsible credit use. While you can't speed up time, you can make smart choices to improve this factor:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="cqof5"&gt;&lt;b&gt;Keep old accounts open.&lt;/b&gt; Closing a long-standing credit card lowers your average credit age, which can drop your score.&lt;/li&gt;&lt;li data-block-key="61q78"&gt;&lt;b&gt;Avoid opening too many new accounts.&lt;/b&gt; Each new card lowers your average credit age and adds a hard inquiry to your report.&lt;/li&gt;&lt;li data-block-key="4qnsc"&gt;&lt;b&gt;Start young.&lt;/b&gt; Many top scorers got their first credit card in their late teens or early 20s and used it responsibly.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="i0am"&gt;If you no longer want to use a credit card, it's generally better to keep the account open and use the card for an occasional small purchase to keep the account active. Just make sure there isn't an annual fee you're losing money on.&lt;/p&gt;&lt;h2 data-block-key="7zdqh" id="4.-they-check-their-credit-report-regularly"&gt;4. They check their credit report regularly&lt;/h2&gt;&lt;p data-block-key="1gigr"&gt;Even the most responsible credit users can get hit with fraudulent charges, errors, or identity theft. That's why people with perfect scores monitor their credit reports closely.&lt;/p&gt;&lt;p data-block-key="4s4bt"&gt;Get in the habit of checking your credit report at least once a year. You can get a free credit report from AnnualCreditReport.com to look for mistakes. And if you see any errors, dispute them immediately. If you suspect any fraud, freeze your accounts to prevent anything new from being opened in your name.&lt;/p&gt;&lt;h2 data-block-key="d8smy" id="a-perfect-credit-score-is-cool-but-unnecessary"&gt;A perfect credit score is cool, but unnecessary&lt;/h2&gt;&lt;p data-block-key="db8hk"&gt;While reaching a perfect 850 FICO® Score isn't necessary, practicing these habits can help you build and maintain an excellent score to qualify for the best credit cards and mortgage rates.&lt;/p&gt;&lt;p data-block-key="5sarg"&gt;By paying on time, keeping balances low, maintaining old accounts, and monitoring your credit report, you'll be well on your way to elite credit status.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=8618bc5b-1813-4605-8ef3-4458149a9dda&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=8618bc5b-1813-4605-8ef3-4458149a9dda&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 10 Feb 2025 05:30:20 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/4-traits-of-americans-with-perfect-850-credit-score/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=df51c830-2086-49ff-b24b-ba02b1e40239</guid><category domain="https://www.fool.com/guid">df51c830-2086-49ff-b24b-ba02b1e40239</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's What Happens When You Leave a Lot of Money in Your Savings Account</title><link>https://www.fool.com/money/banks/articles/heres-what-happens-when-you-leave-a-lot-of-money-in-savings-account/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Grey-haired woman holding glasses rests hand on chin and looks thoughtful." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-1162818693.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="jgg0e"&gt;A &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" target="_blank"&gt;high-yield savings account&lt;/a&gt; is one of the best places to keep your money. Your deposits are safe and FDIC insured, you can withdraw money at any time, and you'll earn interest.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=9650a325-f6d0-4ab1-a239-d7fb77c81067&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=9650a325-f6d0-4ab1-a239-d7fb77c81067&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="4flbu"&gt;Believe it or not, though, there's such a thing as keeping too much money in savings. Read on to learn why -- and where you may want to put some of your money instead.&lt;/p&gt;&lt;h2 data-block-key="hmfmp" id="how-much-is-too-much-to-keep-in-a-savings-account"&gt;How much is too much to keep in a savings account?&lt;/h2&gt;&lt;p data-block-key="8p1gp"&gt;Savings accounts are best for money you may need within the next few years.&lt;/p&gt;&lt;p data-block-key="60pmh"&gt;They're perfect for your emergency fund, which should include at least three months' worth of expenses. That way you have some cash to tap into if you lose your job or get hit with an unexpected bill. You don't want to rely on a &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" target="_blank"&gt;credit card&lt;/a&gt; in these situations, because that could land you deep in high-interest debt.&lt;/p&gt;&lt;p data-block-key="24a44"&gt;And if you're saving up to make a purchase within the next three years or so, a savings account is a great place for those funds, too.&lt;/p&gt;&lt;p data-block-key="cuag5"&gt;Beyond that, putting more money in your savings account could cost you a huge amount of money -- and leave you strapped for cash in retirement.&lt;/p&gt;&lt;h2 data-block-key="pv4wd" id="where-to-put-the-rest-of-your-savings"&gt;Where to put the rest of your savings&lt;/h2&gt;&lt;p data-block-key="ct7sf"&gt;If you're like most Americans, you'll need to &lt;i&gt;invest&lt;/i&gt; a decent amount of your income -- ideally, 15% or more -- to save enough for a comfortable retirement. Most of us won't get there just by stashing money in a savings account.&lt;/p&gt;&lt;p data-block-key="7fhn6"&gt;That's why it's smart to invest your long-term savings in the stock market. That may sound difficult and risky, but today, it's easier than ever thanks to &lt;a href="https://www.fool.com/investing/how-to-invest/index-funds/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" target="_blank"&gt;index funds&lt;/a&gt;. These funds replicate major stock indexes like the S&amp;P 500 Index, a group of 500 of the biggest, most successful companies in the U.S. When you buy an index fund, you buy a piece of every company in that index.&lt;/p&gt;&lt;p data-block-key="crv9q"&gt;Since 1957, the S&amp;P 500 has returned an average of 10% per year -- over twice the interest rate of today's best savings accounts. So if you buy an S&amp;P 500 index fund and hold it for years, odds are good you'll earn a high return.&lt;/p&gt;&lt;h2 data-block-key="pd0qd" id="where-to-buy-stocks-and-index-funds"&gt;Where to buy stocks and index funds&lt;/h2&gt;&lt;p data-block-key="an4sh"&gt;&lt;i&gt;Where&lt;/i&gt; you buy stocks is almost as important as &lt;i&gt;what&lt;/i&gt; you buy. There are a number of retirement savings accounts that offer huge tax breaks. These are the accounts you want to invest through first.&lt;/p&gt;&lt;h3 data-block-key="ypnr6" id="401(k)"&gt;401(k)&lt;/h3&gt;&lt;p data-block-key="4krmn"&gt;If you have access to a 401(k), then that's the best place to start putting money once your savings account balance is big enough. That's because most employers will match your 401(k) contributions up to a certain amount -- and that's free money.&lt;/p&gt;&lt;p data-block-key="97iv9"&gt;On top of that, investments held in a 401(k) are not subject to capital gains taxes or dividend taxes. If you invest through a traditional 401(k), then your contributions won't be subject to income tax. If you opt for a Roth 401(k), then your contributions will be taxed, but once you retire, your withdrawals will be tax free.&lt;/p&gt;&lt;h3 data-block-key="h6ycz" id="ira"&gt;IRA&lt;/h3&gt;&lt;p data-block-key="51q7r"&gt;If you don't have access to a 401(k), your next best option is an IRA. You can open an IRA through any of the &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" target="_blank"&gt;best stock brokers&lt;/a&gt; and start buying stocks, index funds, and more.&lt;/p&gt;&lt;p data-block-key="39lok"&gt;IRAs offer the same tax breaks as 401(k)s. However, they have lower contribution limits ($7,000 per year if you're under 50, or $8,000 if you're 50 or older). And there's no employer match.&lt;/p&gt;&lt;p data-block-key="908ur"&gt;Like 401(k)s, IRAs come in traditional and Roth varieties. Not everyone can open a Roth IRA; be sure to read up on the &lt;a href="https://www.fool.com/retirement/plans/ira/rules/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" target="_blank"&gt;IRA rules&lt;/a&gt; to figure out which option is best for you.&lt;/p&gt;&lt;h3 data-block-key="7fh28" id="taxable-brokerage-account"&gt;Taxable brokerage account&lt;/h3&gt;&lt;p data-block-key="81li1"&gt;A "taxable brokerage account" is just a regular brokerage account -- which means it doesn't offer the tax breaks of a 401(k) or IRA. You can open a brokerage account through any major broker and choose from thousands of investments.&lt;/p&gt;&lt;p data-block-key="b3aed"&gt;&lt;i&gt;Want to get in on the stock market's high returns?&lt;/i&gt; &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best brokerage accounts, and you can start investing in stocks, index funds, and more today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="f49l6" id="how-much-could-a-too-big-savings-account-cost-you"&gt;How much could a too-big savings account cost you?&lt;/h2&gt;&lt;p data-block-key="bnbi5"&gt;Let's say your savings account contains enough money to cover an emergency, plus an extra $20,000. Let's see how much that $20,000 would earn in:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="8psi5"&gt;A savings account earning a competitive APY of 4.00%&lt;/li&gt;&lt;li data-block-key="8n773"&gt;An S&amp;P 500 index fund earning a return of 8% per year (this is totally hypothetical, but it's a low estimate compared to the S&amp;P 500's historical returns).&lt;/li&gt;&lt;/ul&gt;&lt;div class="ta_table-wrap"&gt;&lt;table class="ta_table"&gt;&lt;thead&gt;&lt;tr&gt;&lt;th&gt;Time&lt;/th&gt;&lt;th&gt;Balance in Savings Account&lt;/th&gt;&lt;th&gt;Value of S&amp;P 500 Index Fund Investment&lt;/th&gt;&lt;/tr&gt;&lt;/thead&gt;&lt;tbody&gt;&lt;tr&gt;&lt;td&gt;0 years (starting balance/investment)&lt;/td&gt;&lt;td&gt;$20,000&lt;/td&gt;&lt;td&gt;$20,000&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;1 year&lt;/td&gt;&lt;td&gt;$20,815&lt;/td&gt;&lt;td&gt;$21,600&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;5 years&lt;/td&gt;&lt;td&gt;$24,420&lt;/td&gt;&lt;td&gt;$29,387&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;10 years&lt;/td&gt;&lt;td&gt;$29,817&lt;/td&gt;&lt;td&gt;$43,179&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;20 years&lt;/td&gt;&lt;td&gt;$44,452&lt;/td&gt;&lt;td&gt;$93,219&lt;/td&gt;&lt;/tr&gt;&lt;/tbody&gt;&lt;/table&gt;&lt;/div&gt;&lt;div class="caption pt--0 c--sec-drkr"&gt;Data source: Author's calculations. &lt;/div&gt;&lt;p data-block-key="m8b89"&gt;Keeping excess cash in a savings account instead of investing it could cost you tens of thousands of dollars in the long run. And if you put &lt;i&gt;all&lt;/i&gt; of your disposable income in a savings account and invest &lt;i&gt;none&lt;/i&gt; of it, you could be missing out on six figures.&lt;/p&gt;&lt;p data-block-key="hlqb"&gt;So if you have more money than you need in savings, then it's time to put that extra cash to work and set yourself up for a brighter financial future.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ded74150-dba7-47d5-b3b8-94c9e30e7db1&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ded74150-dba7-47d5-b3b8-94c9e30e7db1&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 09 Feb 2025 07:00:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-what-happens-when-you-leave-a-lot-of-money-in-savings-account/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=81d93951-c89d-452e-b52b-ff3872148502</guid><category domain="https://www.fool.com/guid">81d93951-c89d-452e-b52b-ff3872148502</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Here's What Happens When Your Credit Score Reaches 850</title><link>https://www.fool.com/money/credit-cards/articles/heres-what-happens-when-credit-score-reaches-850/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A woman pumps her fist and smiles." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fhappy_woman_bUsxFdL.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="mn71z"&gt;If you've ever checked your credit score and wondered what it takes to reach a perfect 850, you're not alone. An 850 FICO® Score is the holy grail of creditworthiness, but what does it actually mean and does it even matter?&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f5348772-8cd3-42f1-80b6-cd9cf9db0a10&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f5348772-8cd3-42f1-80b6-cd9cf9db0a10&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="8dq3a"&gt;While hitting 850 is an impressive milestone, you don't need a perfect score to get the best &lt;a href="https://www.fool.com/money/credit-cards/best-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e" target="_blank"&gt;rewards credit cards&lt;/a&gt; and lowest mortgage rates. Let's break down what happens when you reach an 850 credit score and whether it's worth chasing.&lt;/p&gt;&lt;h2 data-block-key="7jjou" id="what-an-850-credit-score-really-means"&gt;What an 850 credit score really means&lt;/h2&gt;&lt;p data-block-key="6r31o"&gt;A FICO® Score of 850 is the highest possible score on the scale, which ranges from 300 to 850. This means lenders see you as an ultra-low-risk borrower who has a long history of responsible credit use, on-time payments, and low credit utilization.&lt;/p&gt;&lt;p data-block-key="4b0f8"&gt;But here's the thing: Anything above 800 is already considered "excellent." So while an 850 score is great, having an 820 or 830 will still get you the best credit cards and mortgage rates.&lt;/p&gt;&lt;p data-block-key="a0uql"&gt;&lt;i&gt;The best rewards credit cards can be worth over $1,000 per year.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of best credit cards now.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="nd2th" id="what-perks-come-with-an-850-credit-score"&gt;What perks come with an 850 credit score?&lt;/h2&gt;&lt;p data-block-key="bu2ee"&gt;There are a few notable benefits that an 850 credit score will get you.&lt;/p&gt;&lt;h3 data-block-key="5uunu" id="1.-you'll-qualify-for-the-best-loan-and-credit-card-offers"&gt;1. You'll qualify for the best loan and credit card offers&lt;/h3&gt;&lt;p data-block-key="e2dv8"&gt;With a perfect credit score, you'll likely get the lowest interest &lt;a href="https://www.fool.com/money/mortgages/rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e" target="_blank"&gt;rates on mortgages&lt;/a&gt;, auto loans, and personal loans. Even though lenders typically reserve their best rates for anyone above 800, having an 850 gives you absolute peace of mind that you're getting top-tier offers.&lt;/p&gt;&lt;h3 data-block-key="ki53w" id="2.-you'll-have-a-higher-credit-limit"&gt;2. You'll have a higher credit limit&lt;/h3&gt;&lt;p data-block-key="afltp"&gt;Credit card issuers reward customers with high credit scores by offering &lt;a href="https://www.fool.com/money/credit-cards/best-high-limit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e" target="_blank"&gt;higher credit limits&lt;/a&gt;. This gives you more spending power and helps keep your credit utilization ratio low -- one of the key factors in maintaining a great score.&lt;/p&gt;&lt;h3 data-block-key="s7ymy" id="3.-you'll-have-more-negotiating-power"&gt;3. You'll have more negotiating power&lt;/h3&gt;&lt;p data-block-key="66s2b"&gt;When you apply for a loan or credit card, lenders want your business. With an 850 credit score, you can negotiate better terms, such as a lower APR, higher credit limit, or waived fees.&lt;/p&gt;&lt;h2 data-block-key="o7zac" id="does-having-an-850-credit-score-actually-matter"&gt;Does having an 850 credit score actually matter?&lt;/h2&gt;&lt;p data-block-key="vo2i"&gt;While an 850 credit score is impressive, the reality is that there's no real difference between an 850 and, say, an 820 or even 750. A score of 740 and above is considered "very good credit" and generally is enough to get you approved for the best rewards credit cards and the lowest mortgage rates.&lt;/p&gt;&lt;p data-block-key="d1h0v"&gt;It's more important to focus on maintaining the highest credit score you can rather than trying to have a perfect score.&lt;/p&gt;&lt;h2 data-block-key="m4i14" id="how-to-maintain-a-top-tier-credit-score"&gt;How to maintain a top-tier credit score&lt;/h2&gt;&lt;p data-block-key="19pud"&gt;Whether you have a perfect credit score or are working on rebuilding your credit, here's how to work toward and maintain elite credit status:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="cfesr"&gt;&lt;b&gt;Pay every bill on time.&lt;/b&gt; Your payment history is the most important factor.&lt;/li&gt;&lt;li data-block-key="emes6"&gt;&lt;b&gt;Keep credit utilization low.&lt;/b&gt; Try to use less than 10% of your total credit limit. Better yet, pay your credit card bills in full every month.&lt;/li&gt;&lt;li data-block-key="1j5u6"&gt;&lt;b&gt;Avoid unnecessary hard inquiries.&lt;/b&gt; Too many new credit applications can temporarily lower your score.&lt;/li&gt;&lt;li data-block-key="ean7"&gt;&lt;b&gt;Maintain a long credit history.&lt;/b&gt; Keep old accounts open to boost your average account age.&lt;/li&gt;&lt;li data-block-key="1becm"&gt;&lt;b&gt;Check your credit report regularly.&lt;/b&gt; Mistakes happen, and catching errors early can prevent drops in your score.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="2adu0"&gt;A perfect, or even an excellent or very good credit score, won't happen overnight. But by practicing the above habits and sticking with them, you'll see your credit score climb over time to a number you can be proud of.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a1bcee89-0f5c-45fa-bbdd-d930fbaf700c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a1bcee89-0f5c-45fa-bbdd-d930fbaf700c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 09 Feb 2025 06:30:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/heres-what-happens-when-credit-score-reaches-850/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=82856833-1a40-458a-8409-c703172a9a7e</guid><category domain="https://www.fool.com/guid">82856833-1a40-458a-8409-c703172a9a7e</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's Why Your Checking Account Should Have as Little Money as Possible</title><link>https://www.fool.com/money/banks/articles/heres-why-your-checking-account-should-have-as-little-money-as-possible/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="young man sitting at kitchen table writing a check" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fyoung_man_sitting_at_kitchen_table_writing_a_c.width-793_8q33t78.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="ko335"&gt;If you're used to keeping a big balance in your checking account, you might think you're playing it safe. But keeping too much money in a checking account is actually costing you. Unlike savings accounts or investments, your checking account earns little to no interest, meaning your extra cash is just sitting there losing value.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=9dff43ef-f162-4727-8c74-4503ff8bd892&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=9dff43ef-f162-4727-8c74-4503ff8bd892&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="835jt"&gt;Here's why you should keep as little money as possible in your &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20" target="_blank"&gt;checking account&lt;/a&gt; -- and where to move the rest to make your money work for you.&lt;/p&gt;&lt;h2 data-block-key="sggms" id="1.-checking-accounts-earn-almost-no-interest"&gt;1. Checking accounts earn almost no interest&lt;/h2&gt;&lt;p data-block-key="7rg3n"&gt;According to the FDIC, the average checking account APY is just 0.07%. That means even if you have $10,000 sitting in your account, you're earning just $7 per year in interest. Meanwhile, inflation is eating away at your purchasing power, making your money worth less over time.&lt;/p&gt;&lt;p data-block-key="7r51e"&gt;Instead, move extra cash to a &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20" target="_blank"&gt;high-yield savings account (HYSA)&lt;/a&gt;, where you can earn 4.00% APY or more. That same $10,000 would earn $400 a year instead of just $7.&lt;/p&gt;&lt;p data-block-key="1fd62"&gt;&lt;i&gt;Some of these accounts earn more than 50x that of a typical checking account.&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Explore our list of the best high-yield savings accounts now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="t37mt" id="2.-you're-more-likely-to-overspend"&gt;2. You're more likely to overspend&lt;/h2&gt;&lt;p data-block-key="4qj4j"&gt;Having a large balance in your checking account can make you feel like you have more money to spend -- even if that cash is meant for saving. When money is easily accessible, it's tempting to splurge on unnecessary expenses rather than let it grow.&lt;/p&gt;&lt;p data-block-key="ap2sk"&gt;Keep only what you need for monthly expenses in your checking account and transfer the rest to a separate savings or investment account. Out of sight, out of mind.&lt;/p&gt;&lt;h2 data-block-key="x5pjs" id="3.-you're-missing-out-on-the-stock-market"&gt;3. You're missing out on the stock market&lt;/h2&gt;&lt;p data-block-key="c9atc"&gt;Historically, the stock market has returned an average of 10% annually, as measured by the S&amp;P 500. There will be short-term losses, but long-term the S&amp;P 500 Index has gone up 38 of the past 50 years.&lt;/p&gt;&lt;p data-block-key="ftbqc"&gt;Instead of keeping money you don't immediately need in your checking account, open an &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20" target="_blank"&gt;IRA&lt;/a&gt; and start investing for retirement. Buying an S&amp;P 500 index fund automatically diversifies your money among 500 of the biggest and most successful companies in the U.S.&lt;/p&gt;&lt;h2 data-block-key="62ajm" id="4.-it-doesn't-protect-you-from-fraud"&gt;4. It doesn't protect you from fraud&lt;/h2&gt;&lt;p data-block-key="8jar4"&gt;If someone gains access to your checking account through fraud or theft, a large balance could be at risk. While banks typically offer fraud protection, recovering stolen money can take time, leaving you stressed and potentially short on funds.&lt;/p&gt;&lt;p data-block-key="7f01n"&gt;By keeping only what you need in checking, you limit your exposure to fraud and protect your money in accounts that are harder to access.&lt;/p&gt;&lt;h2 data-block-key="hsfi6" id="you-have-better-options"&gt;You have better options&lt;/h2&gt;&lt;p data-block-key="ebplg"&gt;Your checking account should be a spending tool, not a savings account. By keeping just enough for bills and short-term expenses -- and moving the rest into higher-yield accounts -- you'll grow your money faster and avoid the temptation to overspend.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a5768b98-6b3b-44f6-98e0-b4e02f9d5c7f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a5768b98-6b3b-44f6-98e0-b4e02f9d5c7f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 09 Feb 2025 06:00:20 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-why-your-checking-account-should-have-as-little-money-as-possible/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f3d71023-6b3f-4091-8605-552a06356b20</guid><category domain="https://www.fool.com/guid">f3d71023-6b3f-4091-8605-552a06356b20</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's What Happens if You Deposit More Than $10,000 in Cash Into Your Bank Account</title><link>https://www.fool.com/money/banks/articles/heres-what-happens-if-you-deposit-more-than-10000-cash-into-your-bank-account/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Older woman getting assistance from a bank teller." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FOlder_woman_getting_assistance_from_a_bank_tel.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="sqjyr"&gt;The Bank Secrecy Act of 1970 requires banks to file a report with the federal government if a customer deposits or withdraws more than $10,000 in cash in a 24-hour period. This is meant to help the government spot and investigate potential money laundering.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d4645b79-0876-4595-9904-9e2441862944&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d4645b79-0876-4595-9904-9e2441862944&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="2lrul"&gt;If you're not doing anything illegal, then you have nothing to worry about. But if you try to dodge the reporting requirements, you could land yourself in hot water.&lt;/p&gt;&lt;p data-block-key="d3acc"&gt;Here's what you need to know about making cash deposits of over $10,000.&lt;/p&gt;&lt;p data-block-key="ah5bo"&gt;&lt;i&gt;Want to earn 10 times the national average APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and start earning more interest today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="i5yle" id="how-it-works"&gt;How it works&lt;/h2&gt;&lt;p data-block-key="6ta4i"&gt;If your cash deposits &lt;i&gt;or&lt;/i&gt; withdrawals at a single bank add up to more than $10,000 in a 24-hour period, that bank is required by law to send a "cash transaction report" (CTR) to the Financial Crimes Enforcement Network (FinCEN).&lt;/p&gt;&lt;p data-block-key="4b5c5"&gt;The CTR includes:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="c38bp"&gt;Your name&lt;/li&gt;&lt;li data-block-key="11j4n"&gt;Your address&lt;/li&gt;&lt;li data-block-key="a4l"&gt;Your Social Security number&lt;/li&gt;&lt;li data-block-key="6qdks"&gt;Your driver's license number (if you have one)&lt;/li&gt;&lt;li data-block-key="1p0mq"&gt;The date, amount, and type of the transaction&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="9mqj7"&gt;Bank employees are not required to tell you they're filing a CTR. However, they are required to verify your identity first.&lt;/p&gt;&lt;p data-block-key="1775n"&gt;Bank employees may ask you additional questions, like where the money came from. You don't have to answer, but it's best to be honest. If the bank thinks you're dodging questions, that may raise a red flag.&lt;/p&gt;&lt;p data-block-key="8khli"&gt;CTRs all go to one database so that FinCEN can look for signs of illegal activity. A single CTR is unlikely to get FinCEN's attention. But several CTRs -- from a single bank or from multiple banks -- may trigger an investigation.&lt;/p&gt;&lt;h2 data-block-key="gym4r" id="follow-the-rules-and-play-it-cool"&gt;Follow the rules and play it cool&lt;/h2&gt;&lt;p data-block-key="d4lif"&gt;If you need to deposit more than $10,000 cash in your bank account, then go for it. Don't break it up into smaller deposits to avoid a report to the Feds. This is known as "structuring," and it's illegal.&lt;/p&gt;&lt;p data-block-key="6tu50"&gt;If a bank thinks you're structuring your cash transactions, then it will file a "suspicious activity report" -- and that's guaranteed to get FinCEN's attention. Structuring is punishable by a fine of up to $250,000, up to five years in prison, or both.&lt;/p&gt;&lt;p data-block-key="d0jnq"&gt;And if you think you're slick enough to stay under the bank's radar, know that many banks today use software that can spot suspicious activity much better than your average teller.&lt;/p&gt;&lt;h2 data-block-key="hob20" id="make-sure-your-bank-allows-large-deposits"&gt;Make sure your bank allows large deposits&lt;/h2&gt;&lt;p data-block-key="cae7b"&gt;A lot of banks don't allow cash deposits of over $10,000 within a 24-hour period. Some of the &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84" target="_blank"&gt;best savings accounts&lt;/a&gt; don't even let you deposit that much cash in a &lt;i&gt;month&lt;/i&gt;.&lt;/p&gt;&lt;p data-block-key="dhvm5"&gt;If you have over $10,000 cash to deposit, but your bank won't let you deposit that much at once, then you may need to…&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="5gkls"&gt;Open a new savings or &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84" target="_blank"&gt;checking account&lt;/a&gt; at a bank that allows larger cash deposits. You can then electronically transfer the funds to another account if you'd like.&lt;/li&gt;&lt;li data-block-key="e5jfe"&gt;Make multiple smaller deposits. It is &lt;i&gt;not&lt;/i&gt; considered "structuring" -- and therefore it's not illegal -- if you're only trying to stay within your bank's deposit limits.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="3a39n"&gt;In any case, it's best to call your bank and tell them what you need. They'll let you know the best plan of action.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d432e683-9e7a-4cca-ba33-8a7b801afcaa&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d432e683-9e7a-4cca-ba33-8a7b801afcaa&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 09 Feb 2025 05:30:36 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-what-happens-if-you-deposit-more-than-10000-cash-into-your-bank-account/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=dcc0cfbe-2515-4150-bc1d-8b888760cb84</guid><category domain="https://www.fool.com/guid">dcc0cfbe-2515-4150-bc1d-8b888760cb84</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Banks Won't Tell You This: Why You Shouldn't Keep an Extra $10K in Your Checking Account</title><link>https://www.fool.com/money/banks/articles/banks-wont-tell-you-this-why-you-shouldnt-keep-an-extra-10k-in-your-checking-account/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A bank teller smiles to a customer from behind her desk." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FBank_teller_GETTY_bMmjgkg.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="f59t1"&gt;Keeping an extra $10,000 sitting in your checking account might make you feel financially secure, but it's likely causing you to miss out on hundreds or even thousands of dollars in interest.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=17faa0e7-addd-4936-8054-26efeefc9943&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=17faa0e7-addd-4936-8054-26efeefc9943&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="ah0l5"&gt;Checking accounts typically offer little to no interest, meaning your money just sits there instead of working for you. A checking account provides you easy access to cash and a place to keep enough money to cover monthly bills and expenses. But keeping any more money than that in a checking account is not a smart move.&lt;/p&gt;&lt;p data-block-key="72aou"&gt;Instead of letting your extra cash go to waste, here are better places to park it. You'll earn more while still keeping your money accessible when you need it.&lt;/p&gt;&lt;h2 data-block-key="kxd5r" id="1.-high-yield-savings-account-(hysa)"&gt;1. High-yield savings account (HYSA)&lt;/h2&gt;&lt;p data-block-key="19v55"&gt;A high-yield savings account (HYSA) is one of the safest and easiest ways to earn more on your money while keeping it accessible. Unlike &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997" target="_blank"&gt;checking accounts&lt;/a&gt; that earn an average APY of 0.07%, many HYSAs offer 4.00% APY or more -- meaning you could earn more than 50x your checking account interest a year just by moving your money.&lt;/p&gt;&lt;p data-block-key="25fel"&gt;The best high-yield savings accounts are fee-free with easy transfers between accounts. They're the perfect spot to keep emergency savings to cover up to six months of expenses.&lt;/p&gt;&lt;p data-block-key="ab9gb"&gt;&lt;i&gt;Some of these accounts earn more than 50x that of a typical checking account.&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Explore our list of the best high-yield savings accounts now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="aq4wr" id="2.-certificate-of-deposit-(cd)"&gt;2. Certificate of deposit (CD)&lt;/h2&gt;&lt;p data-block-key="d5vko"&gt;If you don't need your money right away, a &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997" target="_blank"&gt;certificate of deposit (CD)&lt;/a&gt; can offer interest rates on par and sometimes higher than an HYSA. CDs require you to lock in your money for a set period (typically three months to five years), but in return, you get a guaranteed interest rate.&lt;/p&gt;&lt;p data-block-key="273hb"&gt;For example, putting $10,000 into a 12-month CD with a 4.00% APY would earn you $400 in interest in just one year. CDs are the perfect spot for money you're saving for a long-term goal and don't need or don't want to be tempted to spend in the short term.&lt;/p&gt;&lt;h2 data-block-key="30z6r" id="3.-investment-account"&gt;3. Investment account&lt;/h2&gt;&lt;p data-block-key="fvjtm"&gt;If you don't need access to your $10,000 for at least three to five years, investing in a &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997" target="_blank"&gt;brokerage account&lt;/a&gt; or IRA could offer higher returns than any bank account. The stock market has historically averaged 10% annual returns, meaning your money has the potential to grow much faster over time.&lt;/p&gt;&lt;p data-block-key="9ur01"&gt;It's smart to invest in things like:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="2n5c0"&gt;Index funds (like S&amp;P 500 ETFs) for diversified, low-risk growth.&lt;/li&gt;&lt;li data-block-key="e8b8m"&gt;Dividend stocks to earn passive income.&lt;/li&gt;&lt;li data-block-key="6vfld"&gt;Growth stocks to hold for retirement.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="c1vjm"&gt;After making sure you're covered in case of an emergency, growing your retirement nest egg is the next most important thing. The earlier you can get started, the better, so your savings can grow with compound interest.&lt;/p&gt;&lt;h2 data-block-key="2r7ex" id="4.-pay-off-high-interest-debt"&gt;4. Pay off high-interest debt&lt;/h2&gt;&lt;p data-block-key="dmmf"&gt;If you have high-interest debt, like credit cards with 20%-plus APRs, using your extra cash to pay it down could be the smartest financial move. Instead of earning 4% in a savings account, paying off a 20% credit card balance is like getting a guaranteed 20% return on your money.&lt;/p&gt;&lt;p data-block-key="5tbk2"&gt;Even paying down a portion of a mortgage, car loan, or student loan can save you hundreds (or thousands) of dollars in interest over time.&lt;/p&gt;&lt;h2 data-block-key="p8z4g" id="a-checking-account-is-not-a-good-place-to-save-money"&gt;A checking account is not a good place to save money&lt;/h2&gt;&lt;p data-block-key="7m1ma"&gt;Having a checking account is necessary for most, but it's important not to stack cash in it. With a national average interest rate of just 0.07%, you're costing yourself money by letting it sit there. By making even one of these changes, you could be earning 50x more on your savings overnight.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=0b648e06-9185-443e-94f5-08ba679068f0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=0b648e06-9185-443e-94f5-08ba679068f0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sat, 08 Feb 2025 06:30:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/banks-wont-tell-you-this-why-you-shouldnt-keep-an-extra-10k-in-your-checking-account/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=b76f91ce-ca80-42d4-a3c4-4fc4c73fd997</guid><category domain="https://www.fool.com/guid">b76f91ce-ca80-42d4-a3c4-4fc4c73fd997</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>3 Reasons Not to Open a CD Right Now -- Even With Rates Over 4%</title><link>https://www.fool.com/money/banks/articles/3-reasons-not-to-open-a-cd-right-now-even-with-rates-over-4/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Man sits at laptop and appears to be in thought." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FMan_sits_at_laptop_and_appears_to_be_in_though.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="pc2en"&gt;Right now, the &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" target="_blank"&gt;best CD rates&lt;/a&gt; you can get are in the neighborhood of 4.50%. That's a pretty high return for an investment with virtually zero risk. And yet, most people have better options.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b60b69a5-9c46-4398-bb60-ab34504e65ff&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=b60b69a5-9c46-4398-bb60-ab34504e65ff&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="da8mh"&gt;The problem with certificates of deposit is that they're sort of an unhappy medium between &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" target="_blank"&gt;high-yield savings accounts&lt;/a&gt; and higher-return investments like stocks. Unless you have a very large amount of money to set aside, then you may not want to bother with CDs.&lt;/p&gt;&lt;p data-block-key="14du8"&gt;Here are three reasons to put your money elsewhere.&lt;/p&gt;&lt;h2 data-block-key="6yluj" id="1.-high-yield-savings-accounts-are-more-convenient-and-flexible"&gt;1. High-yield savings accounts are more convenient and flexible&lt;/h2&gt;&lt;p data-block-key="4aqvf"&gt;The best high-yield savings accounts currently offer APYs of about 3.75% to 4.50%. That means they pay roughly the same interest rates as the best CDs.&lt;/p&gt;&lt;p data-block-key="a2ics"&gt;In addition, savings accounts…&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="dquiq"&gt;Are easy to open&lt;/li&gt;&lt;li data-block-key="2mmho"&gt;Allow easy (or even automatic) deposits at any time&lt;/li&gt;&lt;li data-block-key="9d73k"&gt;Allow easy withdrawals and transfers to other accounts&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="du3uj"&gt;These features make savings accounts perfect for building your emergency fund and other short-term savings. You can add to them whenever you want -- and tap them whenever you need.&lt;/p&gt;&lt;p data-block-key="9s8ng"&gt;Meanwhile, most CDs charge an interest penalty if you cash them out before their maturity date (there are exceptions, but they generally have lower APYs). And once you've opened a CD, you can't add more money to it.&lt;/p&gt;&lt;p data-block-key="dgrut"&gt;This lack of flexibility can be a positive if you want to avoid the temptation of spending your deposits. Otherwise, CDs are just more hassle, and they offer little to no additional interest in exchange.&lt;/p&gt;&lt;p data-block-key="4o2fk"&gt;&lt;i&gt;Want to earn 10 times the national average APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and open a new account today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="rgax1" id="2.-the-stock-market-offers-much-higher-returns"&gt;2. The stock market offers much higher returns&lt;/h2&gt;&lt;p data-block-key="dv9iu"&gt;Since 1957, the stock market has returned an average of 10% per year (as measured by the S&amp;P 500 Index, which represents most of the U.S. market by value). That's more than twice the interest rate on today's best CDs.&lt;/p&gt;&lt;p data-block-key="b8kht"&gt;The stock market fluctuates, and short-term losses are guaranteed. But the S&amp;P 500 Index has gone up in 38 of the past 50 years. This is why the stock market is one of the best places to invest for big, long-term goals like retirement.&lt;/p&gt;&lt;p data-block-key="3lc2o"&gt;If you're unsure where to start, consider opening an &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" target="_blank"&gt;IRA&lt;/a&gt; and purchasing an S&amp;P 500 index fund. These funds have low fees and allow you to invest in the entire S&amp;P 500 Index all at once. That means you get a piece of 500 big, successful U.S. companies -- no need to pick stocks on your own.&lt;/p&gt;&lt;h2 data-block-key="1b8c7" id="3.-you-have-credit-card-debt"&gt;3. You have credit card debt&lt;/h2&gt;&lt;p data-block-key="cdie3"&gt;If you're carrying any credit card debt, or other high-interest debt, then you'll be swimming upstream until it's paid off. The average credit card APR is 21%, according to the Federal Reserve. So if you have outstanding credit card debt, you're essentially earning a double-digit &lt;i&gt;negative&lt;/i&gt; return on your balance.&lt;/p&gt;&lt;p data-block-key="abtao"&gt;If your credit card balance is greater than $0 at the end of your billing cycle, then investing in CDs is a waste of money. No CD will earn you more than the interest you're paying to your credit card issuer -- nor will the stock market.&lt;/p&gt;&lt;h2 data-block-key="ivxpl" id="cds-still-make-sense-for-some"&gt;CDs still make sense for some&lt;/h2&gt;&lt;p data-block-key="ntre"&gt;In some situations, investing in CDs can be a good call.&lt;/p&gt;&lt;p data-block-key="4nmvl"&gt;For instance, if you…&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="f6tq9"&gt;Have enough money in a savings account to cover any expenses that might crop up within the next few years&lt;/li&gt;&lt;li data-block-key="4s74r"&gt;Have no high-interest debt&lt;/li&gt;&lt;li data-block-key="6bgkt"&gt;Are on track to save more than enough for a comfortable retirement&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="3va60"&gt;…then you might set some money aside in CDs so it can earn a respectable, guaranteed APY.&lt;/p&gt;&lt;p data-block-key="6nnu2"&gt;But most people will want to put near-term savings in a high-yield savings account, then invest the rest more aggressively through a 401(k), IRA, or regular &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" target="_blank"&gt;brokerage account&lt;/a&gt;.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f2837f9f-b84e-47ca-8811-0c76315dd831&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=f2837f9f-b84e-47ca-8811-0c76315dd831&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sat, 08 Feb 2025 06:00:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/3-reasons-not-to-open-a-cd-right-now-even-with-rates-over-4/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=68e66f54-3fbd-4d32-848d-8daba9f0b0a2</guid><category domain="https://www.fool.com/guid">68e66f54-3fbd-4d32-848d-8daba9f0b0a2</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>5 Little-Known Tricks to Upgrade to Business Class Without Paying Full Price</title><link>https://www.fool.com/money/credit-cards/articles/5-little-known-tricks-to-upgrade-to-business-class-without-paying-full-price/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Airplane passenger flying business class" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FAirplane_passenger_flying_business_class_cwqh3.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="uif80"&gt;Flying business class is a game-changer. Extra legroom, tasty meals, priority boarding, and lie-flat seats can make any trip feel like a luxury experience. But with business class tickets often costing thousands of dollars, upgrading might seem out of reach.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=43127db0-7369-476e-b050-113395a3e4f2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=43127db0-7369-476e-b050-113395a3e4f2&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="542co"&gt;The good news is you don't have to pay full price to enjoy business class perks. With the right strategies, you can score a business class upgrade for free or at a steep discount. Here are five of the best ways to upgrade your next flight without breaking the bank.&lt;/p&gt;&lt;h2 data-block-key="x2017" id="1.-use-your-points-and-miles"&gt;1. Use your points and miles&lt;/h2&gt;&lt;p data-block-key="o0jm"&gt;One of the easiest ways to upgrade to business class for free (or close to it) is by using airline miles or credit card points. Many major airlines allow you to use frequent flyer miles to upgrade from economy to business class, either at booking or later on.&lt;/p&gt;&lt;p data-block-key="iaea"&gt;If you have &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c" target="_blank"&gt;a travel rewards credit card&lt;/a&gt;, you may be able to transfer points to an airline's loyalty program and use them for an upgrade. Many of the best cards can earn upwards of 5x points or miles on your everyday purchases.&lt;/p&gt;&lt;p data-block-key="kg3i"&gt;If you don't have enough miles for a full upgrade, some airlines let you pay with a mix of miles and cash -- which can still save you hundreds of dollars compared to booking business class out of pocket.&lt;/p&gt;&lt;p data-block-key="c7psj"&gt;&lt;i&gt;Never pay full price for a flight again.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of best travel credit cards to upgrade your travel&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;i&gt;.&lt;/i&gt;&lt;/p&gt;&lt;h2 data-block-key="mn23v" id="2.-bid-for-an-upgrade"&gt;2. Bid for an upgrade&lt;/h2&gt;&lt;p data-block-key="aov0j"&gt;Many airlines now allow passengers to bid on an upgrade, meaning you can name your price for a seat in business class. If your offer is accepted, you get the seat at a discount compared to buying it outright.&lt;/p&gt;&lt;p data-block-key="2hio6"&gt;This system is common on airlines like Lufthansa, Etihad, and Aer Lingus. After booking your economy ticket, check your airline's website to see if they offer upgrade bidding.&lt;/p&gt;&lt;p data-block-key="dqvhk"&gt;To increase your chances, research how much business class seats normally cost on your route and bid at least 30%-50% lower than the full price.&lt;/p&gt;&lt;h2 data-block-key="9imgh" id="3.-take-advantage-of-airline-loyalty-status"&gt;3. Take advantage of airline loyalty status&lt;/h2&gt;&lt;p data-block-key="2724j"&gt;If you fly frequently with the same airline, consider joining their loyalty program and working toward elite status. Many airlines prioritize upgrades for their most loyal customers.&lt;/p&gt;&lt;p data-block-key="f4r9b"&gt;For example, United Premier members and Delta Medallion members often receive complimentary upgrades when seats are available. Even lower-tier status levels can get you discounted upgrade offers at check-in.&lt;/p&gt;&lt;p data-block-key="5uqph"&gt;If you don't fly enough to earn status, some &lt;a href="https://www.fool.com/money/credit-cards/best-airline-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c" target="_blank"&gt;airline credit cards&lt;/a&gt; offer automatic elite perks that can help with upgrades.&lt;/p&gt;&lt;h2 data-block-key="msdzu" id="4.-ask-at-check-in-or-the-gate"&gt;4. Ask at check-in or the gate&lt;/h2&gt;&lt;p data-block-key="b830f"&gt;Sometimes, the simplest strategy is just asking. If business class seats are available, some airlines offer last-minute upgrades at heavily discounted rates when you check in online or at the airport.&lt;/p&gt;&lt;p data-block-key="er37"&gt;You can also ask the gate agent if any upgrades are available. This works best if you're polite and traveling alone, and the flight isn't oversold.&lt;/p&gt;&lt;p data-block-key="9gf2u"&gt;Check in as early as possible for a better shot at discounted upgrades before they're offered to other passengers.&lt;/p&gt;&lt;h2 data-block-key="qwqvg" id="5.-fly-during-off-peak-times"&gt;5. Fly during off-peak times&lt;/h2&gt;&lt;p data-block-key="d2cnb"&gt;If business class is fully booked, your chances of upgrading are slim. But if you travel during off-peak times, airlines are more likely to have empty premium seats they'd rather sell or upgrade at a discount.&lt;/p&gt;&lt;p data-block-key="splm"&gt;Flights on Tuesdays, Wednesdays, and Saturdays are often less crowded. Red-eye and midday flights also tend to have more availability compared to popular morning and evening routes.&lt;/p&gt;&lt;p data-block-key="4lbm9"&gt;When booking, check the seat map to see how full the business class cabin is. If there are lots of empty seats, you may have a better chance of scoring an upgrade.&lt;/p&gt;&lt;h2 data-block-key="tksg1" id="what-do-you-have-to-lose"&gt;What do you have to lose?&lt;/h2&gt;&lt;p data-block-key="apevj"&gt;Upgrading to business class doesn't have to mean paying full price. With a little planning and strategy, you can enjoy lie-flat seats, priority service, and luxury travel perks without blowing your budget.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ddf2c261-5a61-4924-bb47-193cf51a19c9&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ddf2c261-5a61-4924-bb47-193cf51a19c9&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sat, 08 Feb 2025 05:30:22 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/5-little-known-tricks-to-upgrade-to-business-class-without-paying-full-price/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1b5bea5b-f279-4a02-826d-b9968654e79c</guid><category domain="https://www.fool.com/guid">1b5bea5b-f279-4a02-826d-b9968654e79c</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Could Tariffs Push Interest Rates Higher? Here's What It Means for Your Wallet</title><link>https://www.fool.com/money/banks/articles/could-tariffs-push-interest-rates-higher-heres-what-it-means-for-your-wallet/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Man reading newspaper and looking at a tablet" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FMan_reading_newspaper_and_looking_at_a_tablet_.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="li7w5"&gt;Tariffs and interest rates are more connected than you might think. If tariffs drive up prices, inflation can follow -- and when inflation rises, the Federal Reserve often steps in by raising interest rates.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d73a200f-2a38-446c-b1b0-07d937179daa&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d73a200f-2a38-446c-b1b0-07d937179daa&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="brp79"&gt;Rising interest rates mean it gets more expensive to take out a loan or buy a house, but it isn't all bad news. Let's break down how to set yourself up for success if tariffs drive up interest rates.&lt;/p&gt;&lt;h2 data-block-key="2h6iv" id="how-tariffs-affect-prices-and-inflation"&gt;How tariffs affect prices and inflation&lt;/h2&gt;&lt;p data-block-key="2legl"&gt;A tariff is essentially a tax on imported goods. When tariffs go up, businesses often pass the cost to consumers, making products like electronics, cars, and even groceries more expensive. This can lead to higher inflation, which is when the general price level of goods and services rises.&lt;/p&gt;&lt;p data-block-key="c5kr3"&gt;For example, if tariffs increase the cost of raw materials like steel or aluminum, companies that use those materials -- like car manufacturers -- have to pay more. To maintain profits, they often raise prices on their products, leading to higher costs for consumers.&lt;/p&gt;&lt;h2 data-block-key="miy8s" id="why-inflation-could-lead-to-higher-interest-rates"&gt;Why inflation could lead to higher interest rates&lt;/h2&gt;&lt;p data-block-key="7q6d1"&gt;If tariff-fueled inflation rises too quickly, the Federal Reserve may raise interest rates to slow down borrowing and spending. Higher rates make it more expensive to take out loans, which can cool down inflation by reducing demand for goods and services.&lt;/p&gt;&lt;h3 data-block-key="q2bcl" id="a-past-example-of-tariffs-and-inflation"&gt;A past example of tariffs and inflation&lt;/h3&gt;&lt;p data-block-key="bj8bj"&gt;Historically, tariffs have contributed to inflation in some cases. The trade war between the U.S. and China in 2018-2019 led to price increases on consumer goods, and the Fed raised interest rates multiple times during that period. While tariffs weren't the only reason for rate hikes, they played a role in rising costs that led to inflation concerns.&lt;/p&gt;&lt;h2 data-block-key="2g5zy" id="what-this-means-for-you"&gt;What this means for you&lt;/h2&gt;&lt;p data-block-key="c7rtk"&gt;Tariffs and their effect on interest rates could impact consumers in a few key ways.&lt;/p&gt;&lt;h3 data-block-key="j70bw" id="1.-saving-will-become-more-rewarding"&gt;1. Saving will become more rewarding&lt;/h3&gt;&lt;p data-block-key="3vilq"&gt;Higher interest rates also mean better returns on savings accounts, &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771" target="_blank"&gt;CDs&lt;/a&gt;, and money market accounts. If rates rise, a high-yield savings account is one of the best places to park your cash. They routinely offer interest rates close to 10 times that of the national average.&lt;/p&gt;&lt;p data-block-key="1jqt7"&gt;&lt;i&gt;Tired of watching your savings languish at a sub-par APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts to begin maximizing your savings today&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;.&lt;/p&gt;&lt;h3 data-block-key="dum05" id="2.-borrowing-will-get-more-expensive"&gt;2. Borrowing will get more expensive&lt;/h3&gt;&lt;p data-block-key="4l81n"&gt;If tariffs push inflation higher and the Fed responds with rate hikes, expect higher interest rates on credit cards, mortgages, auto loans, and personal loans. If you're planning to buy a home or &lt;a href="https://www.fool.com/money/mortgages/best-refinance-lenders/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771" target="_blank"&gt;refinance a loan&lt;/a&gt; it may be wise to lock in a lower rate sooner rather than later.&lt;/p&gt;&lt;h3 data-block-key="5zjfd" id="3.-stock-market-volatility"&gt;3. Stock market volatility&lt;/h3&gt;&lt;p data-block-key="enbu1"&gt;Rising interest rates often make borrowing more expensive for businesses, which can slow down corporate growth and lead to stock market uncertainty. If tariffs contribute to rate hikes, we could see increased market swings as investors are unsure how to react.&lt;/p&gt;&lt;h2 data-block-key="ko6zr" id="don't-panic"&gt;Don't panic&lt;/h2&gt;&lt;p data-block-key="8pic0"&gt;If you're worried about potential rate hikes, consider locking in &lt;a href="https://www.fool.com/money/personal-loans/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771" target="_blank"&gt;low rates on loans&lt;/a&gt; now, keeping an eye on your credit card interest, and taking advantage of higher savings account yields if rates do rise.&lt;/p&gt;&lt;p data-block-key="e3577"&gt;Tariffs and interest rates might seem complex, but their impact on your wallet tends to be simple. By staying informed and planning ahead, you can make smarter financial decisions.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=5028918f-9afb-4aaf-9ead-620c4ef07d01&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=5028918f-9afb-4aaf-9ead-620c4ef07d01&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 07 Feb 2025 06:30:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/could-tariffs-push-interest-rates-higher-heres-what-it-means-for-your-wallet/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=7e379307-c547-4bab-9a1a-03448ea2f771</guid><category domain="https://www.fool.com/guid">7e379307-c547-4bab-9a1a-03448ea2f771</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's What Really Happens When You Withdraw $10,000 From Your Bank Account</title><link>https://www.fool.com/money/banks/articles/heres-what-really-happens-when-you-withdraw-10000-from-your-bank-account/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Bank teller assisting a customer with cash transaction." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FBank_teller_YhTIvua.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="45x9m"&gt;Withdrawing money from your bank account is usually a straightforward process -- until you hit $10,000. At that point, things change. No matter the reason, withdrawing $10,000 or more triggers extra scrutiny from your bank and the government.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=7ec97e45-f8e7-4eb8-bbf7-c7df9603a444&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=7ec97e45-f8e7-4eb8-bbf7-c7df9603a444&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="b7rce"&gt;Here's what actually happens.&lt;/p&gt;&lt;h2 data-block-key="mpcat" id="1.-your-bank-has-to-report-the-withdrawal"&gt;1. Your bank has to report the withdrawal&lt;/h2&gt;&lt;p data-block-key="9rga3"&gt;The Nixon administration decided to start tackling financial fraud at the banking level. The government needed cooperation from the banks to catch money launderers, drug dealers, and other bad actors. Thus, the Bank Secrecy Act (BSA) was born.&lt;/p&gt;&lt;p data-block-key="qp9e"&gt;Under the BSA, banks are required to report any cash transaction of $10,000 or more to the Financial Crimes Enforcement Network (FinCEN). This includes withdrawals, deposits, or even multiple smaller transactions that total $10,000 within a short period (when done to avoid triggering the $10,000 limit in one transaction, this is known as structuring, and it's illegal).&lt;/p&gt;&lt;p data-block-key="ab8fs"&gt;The $10,000 threshold might not seem like much, but back in 1970, it was worth about $80,000 in 2025 dollars.&lt;/p&gt;&lt;p data-block-key="5qe1v"&gt;&lt;i&gt;If you've got $10,000 in the bank, don't miss out the chance to earn a top APY on your funds.&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the top high-yield savings accounts today to maximize your savings&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;i&gt;.&lt;/i&gt;&lt;/p&gt;&lt;h2 data-block-key="qzmu9" id="2.-you-might-have-to-answer-some-questions"&gt;2. You might have to answer some questions&lt;/h2&gt;&lt;p data-block-key="amdvv"&gt;If you request $10,000-plus in cash, your bank may ask why you need the money. This isn't meant to invade your privacy, but rather to ensure the transaction isn't linked to suspicious activity.&lt;/p&gt;&lt;p data-block-key="29cjd"&gt;Possible questions could include:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="86s20"&gt;What do you plan to do with the cash?&lt;/li&gt;&lt;li data-block-key="5nd81"&gt;Is this for a large purchase, business expense, or travel?&lt;/li&gt;&lt;li data-block-key="e80a2"&gt;Would you like a cashier's check instead?&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="92a7s"&gt;While you don't have to give an exact answer, being vague (or refusing to answer) could raise red flags and delay your withdrawal.&lt;/p&gt;&lt;h2 data-block-key="9paj5" id="3.-your-bank-might-not-have-the-cash-on-hand"&gt;3. Your bank might not have the cash on hand&lt;/h2&gt;&lt;p data-block-key="7vqgs"&gt;Most &lt;a href="https://www.fool.com/money/banks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517" target="_blank"&gt;banks&lt;/a&gt; don't keep large amounts of cash readily available at each branch. If you want to withdraw $10,000, you may need to schedule the withdrawal in advance -- sometimes a few days ahead -- so the bank can prepare the funds.&lt;/p&gt;&lt;p data-block-key="2hho9"&gt;If you need the money immediately, you may have to accept a cashier's check or wire transfer instead.&lt;/p&gt;&lt;h2 data-block-key="elo24" id="4.-you'll-need-to-think-about-security"&gt;4. You'll need to think about security&lt;/h2&gt;&lt;p data-block-key="clicj"&gt;Walking around with $10,000 in cash isn't just inconvenient -- it's risky. If your money is lost or stolen, there's no way to recover it. Don't withdraw that much money from the bank unless you immediately need it. Otherwise, it's much better to let that money earn interest for you in a &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517" target="_blank"&gt;high-yield savings account&lt;/a&gt;.&lt;/p&gt;&lt;p data-block-key="7pnob"&gt;If your transaction can be handled electronically (such as a wire transfer, cashier's check, or Zelle payment), those options are often safer.&lt;/p&gt;&lt;h2 data-block-key="wb97q" id="5.-it-could-get-the-irs's-attention-(but-it's-not-illegal)"&gt;5. It could get the IRS's attention (but it's not illegal)&lt;/h2&gt;&lt;p data-block-key="8i89i"&gt;Withdrawing $10,000 is completely legal, but large cash transactions can attract IRS attention -- especially if they seem unusual or frequent.&lt;/p&gt;&lt;p data-block-key="46mke"&gt;If your withdrawal is linked to legitimate activities, you have nothing to worry about. However, if you frequently deposit or withdraw large sums of cash without a clear reason, the IRS may take a closer look at your financial activity.&lt;/p&gt;&lt;h2 data-block-key="kehsk" id="it's-almost-always-a-non-issue"&gt;It's almost always a non-issue&lt;/h2&gt;&lt;p data-block-key="6lg0m"&gt;Withdrawing $10,000 or more from your bank account isn't as simple as grabbing cash from an ATM. It triggers government reporting requirements, might require advance notice, and could lead to questions from your bank.&lt;/p&gt;&lt;p data-block-key="fv6rb"&gt;But that doesn't mean there is anything to worry about. Banks and the government know people make legal $10,000 transactions all the time. As long as you're doing nothing illegal, you're in the clear.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=2e0b1ac7-5834-4d4a-9278-24080d8ab424&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=2e0b1ac7-5834-4d4a-9278-24080d8ab424&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 07 Feb 2025 06:00:28 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-what-really-happens-when-you-withdraw-10000-from-your-bank-account/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c59d9690-b448-4194-8790-bd54ff9c1517</guid><category domain="https://www.fool.com/guid">c59d9690-b448-4194-8790-bd54ff9c1517</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>How Much Money Should You Keep in Your Checking Account? The Answer Might Surprise You</title><link>https://www.fool.com/money/banks/articles/how-much-money-should-you-keep-in-your-checking-account-the-answer-might-surprise-you/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Man sits at counter with phone on laptop utilizing online banking." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FMan_sits_at_counter_with_phone_on_laptop_utili.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="1iuq6"&gt;Your checking account is the hub of your finances -- where your paycheck lands, bills get paid, and daily spending happens.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=625ff00f-0bc4-44de-9b67-4817cda36e26&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=625ff00f-0bc4-44de-9b67-4817cda36e26&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="b3df8"&gt;But keeping too much or too little in your account can cost you. There's a sweet spot -- enough to cover expenses and avoid fees, but not so much that you're missing out on better savings opportunities. Let's break it down.&lt;/p&gt;&lt;h2 data-block-key="hj34t" id="the-ideal-amount-to-keep-in-your-checking-account"&gt;The ideal amount to keep in your checking account&lt;/h2&gt;&lt;p data-block-key="dr8ct"&gt;A good rule of thumb is to keep one to two months' worth of essential expenses in your &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4" target="_blank"&gt;checking account&lt;/a&gt;. This ensures you have enough to cover your rent/mortgage, utilities, insurance, groceries, and debt payments without constantly worrying about overdrafts.&lt;/p&gt;&lt;p data-block-key="9ifpl"&gt;For example, if your essential expenses total $3,000 per month, you should aim to keep between $3,000 and $6,000 in your checking account at all times.&lt;/p&gt;&lt;h3 data-block-key="yw523" id="why-this-works:"&gt;Why this works:&lt;/h3&gt;&lt;ul&gt;&lt;li data-block-key="c4qqd"&gt;Covers bills and unexpected expenses without dipping into savings.&lt;/li&gt;&lt;li data-block-key="7hgi7"&gt;Avoids overdraft fees and bounced payments.&lt;/li&gt;&lt;li data-block-key="a6988"&gt;Prevents excess cash from sitting idle when it could be earning interest elsewhere.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="pmzxw" id="when-to-keep-more-in-checking"&gt;When to keep more in checking&lt;/h2&gt;&lt;p data-block-key="8e8ms"&gt;In some cases, you might want to keep a little extra in your checking account:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="fi81i"&gt;&lt;b&gt;If you have irregular income.&lt;/b&gt; Freelancers or gig workers with unpredictable paychecks may benefit from keeping an extra cushion.&lt;/li&gt;&lt;li data-block-key="clcot"&gt;&lt;b&gt;If your bills vary month to month.&lt;/b&gt; Some expenses, like utilities or travel, can fluctuate. A higher balance helps absorb those changes.&lt;/li&gt;&lt;li data-block-key="311q8"&gt;&lt;b&gt;If you're close to your bank's minimum balance requirement.&lt;/b&gt; Some accounts charge fees if you drop below a certain amount.&lt;/li&gt;&lt;li data-block-key="6231d"&gt;&lt;b&gt;It's the holidays.&lt;/b&gt; It's no secret that we all spend a little more around the holidays. Be sure to leave yourself a little extra breathing room to avoid any overdraft fees.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="1q168"&gt;If any of these apply to you, consider keeping closer to two months' worth of expenses in checking.&lt;/p&gt;&lt;h2 data-block-key="msezi" id="when-to-keep-less-in-checking"&gt;When to keep less in checking&lt;/h2&gt;&lt;p data-block-key="bugvc"&gt;On the flip side, keeping too much in your checking account means you're missing out on opportunities to grow your money. Checking accounts earn little to no interest, so excess cash is just sitting there instead of working for you.&lt;/p&gt;&lt;p data-block-key="7svmo"&gt;Here's when you should move money out of checking and into better accounts:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="3uj8v"&gt;&lt;b&gt;If you have more than two months' expenses sitting idle.&lt;/b&gt; Move your extra cash to a &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4" target="_blank"&gt;high-yield savings account (HYSA)&lt;/a&gt; to earn 4.00%-plus APY instead.&lt;/li&gt;&lt;li data-block-key="dg7ln"&gt;&lt;b&gt;If you're saving for a big goal.&lt;/b&gt; Whether it's a vacation or a down payment on a home, that money belongs in savings, not checking.&lt;/li&gt;&lt;li data-block-key="90ak2"&gt;&lt;b&gt;If you're tempted to overspend.&lt;/b&gt; A large balance can make it easier to justify impulse purchases. Keeping only what you need helps with budgeting.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="4ctbg"&gt;&lt;i&gt;Have too much money sitting in your checking account?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Move it to a high-yield savings account and potentially earn 16 times more on your cash.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="gnm2u" id="where-to-put-your-extra-cash"&gt;Where to put your extra cash&lt;/h2&gt;&lt;p data-block-key="crsg8"&gt;If you've got more than the recommended amount in checking, here's where to move it:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="15gr2"&gt;&lt;b&gt;High-yield savings account:&lt;/b&gt; Great for emergency funds, short-term savings, and earning interest.&lt;/li&gt;&lt;li data-block-key="6jnvj"&gt;&lt;b&gt;Investment accounts:&lt;/b&gt; If you won't need the money for years, consider a &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4" target="_blank"&gt;brokerage account&lt;/a&gt; or IRA for higher long-term growth.&lt;/li&gt;&lt;li data-block-key="dch25"&gt;&lt;b&gt;Debt payoff:&lt;/b&gt; If you're carrying high-interest debt (like credit cards), use extra cash to knock down your balance faster and save on interest.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="1c8q5" id="allocate-your-money-responsibly"&gt;Allocate your money responsibly&lt;/h2&gt;&lt;p data-block-key="3710f"&gt;The sweet spot for your checking account is one to two months' worth of expenses -- enough to cover bills and unexpected costs, but not so much that your money sits idle.&lt;/p&gt;&lt;p data-block-key="bcn8"&gt;Keeping too little could lead to overdrafts and stress, while keeping too much means missing out on potential growth. By striking the right balance and moving extra cash into savings or investments, you'll keep your money working for you.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=4c127477-71ea-4189-8c0a-f4319ec694f3&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=4c127477-71ea-4189-8c0a-f4319ec694f3&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 04 Feb 2025 06:00:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/how-much-money-should-you-keep-in-your-checking-account-the-answer-might-surprise-you/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1b32df94-6aa7-4f22-817f-4678f0489fb4</guid><category domain="https://www.fool.com/guid">1b32df94-6aa7-4f22-817f-4678f0489fb4</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>4 Signs You Should Skip CDs Despite the 4% Rates</title><link>https://www.fool.com/money/banks/articles/4-signs-you-should-skip-cds-despite-4-rates/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Two men in thought looking at a laptop screen together." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FTwo_men_in_thought_looking_at_laptop_screen_1K.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="8rcyk"&gt;With annual percentage yields (APYs) on &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" target="_blank"&gt;certificates of deposit (CDs)&lt;/a&gt; hitting 4.00% or higher, it might seem like the perfect time to lock in your money and earn some guaranteed returns. But while CDs can be a great low-risk savings option, they're not right for everyone. For some people, putting money into a CD could actually work against their financial goals.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=46beabc2-383a-40d3-bf1b-560f6a625ccd&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=46beabc2-383a-40d3-bf1b-560f6a625ccd&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="4uga"&gt;Before you commit, here are four signs you might want to skip CDs -- even with today's high rates.&lt;/p&gt;&lt;h2 data-block-key="8d6pu" id="1.-you-might-need-the-money-before-the-term-ends"&gt;1. You might need the money before the term ends&lt;/h2&gt;&lt;p data-block-key="488lb"&gt;CDs require you to lock in your money for a set period, which can range from a few months to several years. If you withdraw your money early, you'll likely face penalty fees, which can eat into your interest earnings -- or even your principal.&lt;/p&gt;&lt;p data-block-key="1uvmj"&gt;For example, a 12-month CD with a 4.50% APY might sound great, but if an unexpected expense pops up six months in, you could lose several months' worth of interest when cashing out early.&lt;/p&gt;&lt;p data-block-key="f5k2h"&gt;If you might need access to your cash, consider opening a &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" target="_blank"&gt;high-yield savings account (HYSA)&lt;/a&gt; instead. Many online banks offer 4.00% APY or more on savings accounts, giving you flexibility without the commitment.&lt;/p&gt;&lt;p data-block-key="3am4n"&gt;&lt;i&gt;Have your cash languishing in a low interest account?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Open a high-yield savings account today to potentially earn nearly 10 times more on your money.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="g7g4n" id="2.-you-have-high-interest-debt"&gt;2. You have high-interest debt&lt;/h2&gt;&lt;p data-block-key="d04em"&gt;If you're carrying high-interest debt -- like credit card balances or payday loans -- putting money into a CD isn't the best move. While earning a 4% return on a CD might seem appealing, it doesn't make sense if you're paying 20% or more in interest on credit card debt.&lt;/p&gt;&lt;p data-block-key="1b9d6"&gt;For example, if you have $5,000 in credit card debt at 20% interest and put $5,000 into a CD earning 4%, you're still losing 16% in net interest -- and potentially more due to lost compound interest. That's money that could have been used to pay down your debt faster.&lt;/p&gt;&lt;p data-block-key="dlki2"&gt;Consider using a &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" target="_blank"&gt;0% APR balance transfer credit card&lt;/a&gt; to pay off your debt without incurring more interest. Once your high-interest debt is under control, then you can explore safer savings options like CDs.&lt;/p&gt;&lt;h2 data-block-key="0jmpn" id="3.-you-want-higher-long-term-growth"&gt;3. You want higher long-term growth&lt;/h2&gt;&lt;p data-block-key="fvs9e"&gt;CDs offer stable returns, but they generally don't keep up with long-term inflation or the growth potential of investing in stocks. While a 4% CD might sound great now, historically, the stock market has averaged 10% annual returns over the long run (as measured by the S&amp;P 500 Index).&lt;/p&gt;&lt;p data-block-key="3s5sr"&gt;If you're saving for a long-term goal -- like retirement, a home down payment, or growing wealth -- then locking your money in a CD could mean missing out on thousands of dollars you could earn from a different investment.&lt;/p&gt;&lt;p data-block-key="8b8n0"&gt;If you have a longer time horizon and can handle some risk, &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" target="_blank"&gt;consider opening a brokerage account&lt;/a&gt; and investing in a low-cost index fund or a diversified investment portfolio. While there are no guarantees, investing has historically outperformed CDs over the long run.&lt;/p&gt;&lt;h2 data-block-key="m84lm" id="4.-you-don't-have-a-solid-emergency-fund"&gt;4. You don't have a solid emergency fund&lt;/h2&gt;&lt;p data-block-key="cbu2j"&gt;CDs aren't a great place for emergency savings. Since they require you to keep your money invested, they don't provide the easy access you'd need in case of a job loss, medical emergency, or unexpected expense.&lt;/p&gt;&lt;p data-block-key="40fs4"&gt;If you already have six months' worth of expenses saved in a high-yield savings account, then a CD could be a safe place for extra cash. But if you're still building your &lt;a href="https://www.fool.com/terms/e/emergency-fund/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" target="_blank"&gt;emergency fund&lt;/a&gt;, putting money into a CD could leave you short on cash when you need it most.&lt;/p&gt;&lt;h2 data-block-key="alz3v" id="is-a-cd-right-for-you"&gt;Is a CD right for you?&lt;/h2&gt;&lt;p data-block-key="9kjt1"&gt;While CDs can be a great low-risk option, they're not the right fit for everyone. If you might need quick access to your money, want higher long-term returns, or are still building your emergency fund, you may be better off with a high-yield savings account or an investment strategy.&lt;/p&gt;&lt;p data-block-key="aqkrs"&gt;However, if you have extra cash you won't need for a while and want a safe, guaranteed return, a CD could still be a smart choice. Just make sure it aligns with your financial goals before locking up your money.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=0b8c983c-eff0-4445-9792-f8194d783425&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=0b8c983c-eff0-4445-9792-f8194d783425&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 04 Feb 2025 05:30:24 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/4-signs-you-should-skip-cds-despite-4-rates/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c9213798-803d-4f59-a873-2214f550bd55</guid><category domain="https://www.fool.com/guid">c9213798-803d-4f59-a873-2214f550bd55</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's the Single Best Strategy for Investing in CDs</title><link>https://www.fool.com/money/banks/articles/heres-the-single-best-strategy-investing-in-cds/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Woman making calculations as she uses her laptop." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FWoman_making_calculations_as_she_uses_her_lapt.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="ipsn6"&gt;&lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" target="_blank"&gt;Certificates of deposit (CDs)&lt;/a&gt; are a great way to earn steady interest with little risk. But if you want to get the best returns without keeping your entire investment locked up for years, CD laddering is the smartest strategy.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=4ca57a09-5489-4f71-9951-290e6e25da9a&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=4ca57a09-5489-4f71-9951-290e6e25da9a&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;h2 data-block-key="pj2za" id="what-is-cd-laddering"&gt;What is CD laddering?&lt;/h2&gt;&lt;p data-block-key="4jg9t"&gt;CD laddering is a strategy where you spread your money across multiple CDs with staggered maturity dates. Instead of locking all your money into one long-term CD, you spread it across several CDs that mature at different times.&lt;/p&gt;&lt;p data-block-key="55ekh"&gt;Here's how it works:&lt;/p&gt;&lt;ol&gt;&lt;li data-block-key="6dnja"&gt;You invest in multiple CDs with different terms -- for example, 1-year, 2-year, 3-year, 4-year, and 5-year CDs.&lt;/li&gt;&lt;li data-block-key="86up5"&gt;When the shortest CD matures, you reinvest it into a new &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/5-year-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" target="_blank"&gt;5-year CD&lt;/a&gt; to keep the ladder going.&lt;/li&gt;&lt;li data-block-key="7qbcf"&gt;Repeat each time a CD matures.&lt;/li&gt;&lt;/ol&gt;&lt;p data-block-key="dh4g8"&gt;This strategy lets you lock in high long-term interest rates while still having access to part of your money each year.&lt;/p&gt;&lt;h3 data-block-key="1bisw" id="example:-a-basic-5-year-cd-ladder"&gt;Example: a basic 5-year CD ladder&lt;/h3&gt;&lt;p data-block-key="4k65q"&gt;Let's say you have $10,000 to invest. Instead of putting it all in a single CD, you create a CD ladder like this:&lt;/p&gt;&lt;div class="ta_table-wrap"&gt;&lt;table class="ta_table"&gt;&lt;thead&gt;&lt;tr&gt;&lt;th&gt;CD term&lt;/th&gt;&lt;th&gt;Initial Deposit&lt;/th&gt;&lt;th&gt;APY (Example)&lt;/th&gt;&lt;th&gt;Balance After Maturity&lt;/th&gt;&lt;/tr&gt;&lt;/thead&gt;&lt;tbody&gt;&lt;tr&gt;&lt;td&gt;1 year&lt;/td&gt;&lt;td&gt;$2,000&lt;/td&gt;&lt;td&gt;3.70%&lt;/td&gt;&lt;td&gt;$2,074&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;2 years&lt;/td&gt;&lt;td&gt;$2,000&lt;/td&gt;&lt;td&gt;3.80%&lt;/td&gt;&lt;td&gt;$2,155&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;3 years&lt;/td&gt;&lt;td&gt;$2,000&lt;/td&gt;&lt;td&gt;3.90%&lt;/td&gt;&lt;td&gt;$2,243&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;4 years&lt;/td&gt;&lt;td&gt;$2,000&lt;/td&gt;&lt;td&gt;4.00%&lt;/td&gt;&lt;td&gt;$2,340&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;5 years&lt;/td&gt;&lt;td&gt;$2,000&lt;/td&gt;&lt;td&gt;4.10%&lt;/td&gt;&lt;td&gt;$2,445&lt;/td&gt;&lt;/tr&gt;&lt;/tbody&gt;&lt;/table&gt;&lt;/div&gt;&lt;div class="caption pt--0 c--sec-drkr"&gt;Data source: Author's calculations.&lt;/div&gt;&lt;p data-block-key="o4mlx"&gt;After a year, your 1-year CD matures with a balance of $2,074. Instead of cashing out, you reinvest it into a new 5-year CD at the best available rate. You keep repeating this process, ensuring you always have one CD maturing each year.&lt;/p&gt;&lt;p data-block-key="74dqo"&gt;Note that at the moment, many &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/best-12-month-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" target="_blank"&gt;1-year CDs&lt;/a&gt; actually pay &lt;i&gt;higher&lt;/i&gt; APYs than longer-term CDs. But this is historically unusual and probably won't last for long.&lt;/p&gt;&lt;h2 data-block-key="dzn47" id="the-pros-and-cons-of-cd-investing"&gt;The pros and cons of CD investing&lt;/h2&gt;&lt;p data-block-key="4tghp"&gt;Like most types of deposit accounts, CDs have both positives and negatives that you'll need to consider.&lt;/p&gt;&lt;h3 data-block-key="c5we0" id="pros"&gt;Pros&lt;/h3&gt;&lt;ul&gt;&lt;li data-block-key="2085r"&gt;Your APY is guaranteed for the duration of the CD term, whereas savings account APYs are variable and can change at any time.&lt;/li&gt;&lt;li data-block-key="e3rbq"&gt;With the right strategy, you can earn a little more interest than you would with a &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" target="_blank"&gt;high-yield savings account&lt;/a&gt;.&lt;/li&gt;&lt;li data-block-key="bt7oq"&gt;CDs are FDIC insured, so your deposits are safe. There's also no risk of negative returns, as opposed to the stock market.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="2kl2q"&gt;&lt;i&gt;Want to earn over nine times the average national APY on your savings?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and start earning more cash today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h3 data-block-key="lqr5i" id="cons"&gt;Cons&lt;/h3&gt;&lt;ul&gt;&lt;li data-block-key="flaj1"&gt;Your money is locked in until the CD matures. If you withdraw cash early, you'll likely pay an interest penalty. There are CDs that come with no early withdrawal penalty, but they pay lower APYs.&lt;/li&gt;&lt;li data-block-key="3o585"&gt;Even the highest-yielding CDs may not earn more than the rate of inflation. That means it's possible for your deposits to lose spending power over time.&lt;/li&gt;&lt;li data-block-key="68pcf"&gt;High-yield savings accounts currently pay similar APYs to CDs, and they don't require nearly as much time or effort to manage.&lt;/li&gt;&lt;li data-block-key="c6hsd"&gt;The stock market has historically earned much higher returns (an average of 10% per year since 1957, as measured by the S&amp;P 500 Index).&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="zybwo" id=""&gt;Is CD laddering right for you?&lt;/h2&gt;&lt;p data-block-key="2i047"&gt;CD laddering is a smart strategy for people who want safe, predictable returns without locking up all their money for years. It's more work than simply stashing your money in a high-yield savings account, and (in the near term at least), you won't earn a lot more interest for your efforts.&lt;/p&gt;&lt;p data-block-key="62m3k"&gt;Further, higher-growth assets like stocks can earn much greater returns, allowing you to grow your wealth substantially for long-term goals like retirement.&lt;/p&gt;&lt;p data-block-key="86ou9"&gt;CDs are best for people who have a large amount of money -- say, $10,000 or more -- that they won't need anytime soon and that they want to earn steady, guaranteed returns. The more you invest, the more you'll be rewarded for the extra effort and limitations of a CD laddering strategy.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=8db7cd29-f67a-4773-9fc8-6ce59347f226&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=8db7cd29-f67a-4773-9fc8-6ce59347f226&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 03 Feb 2025 06:30:25 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-the-single-best-strategy-investing-in-cds/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1b3c127e-13e7-4192-976c-ad59de970ded</guid><category domain="https://www.fool.com/guid">1b3c127e-13e7-4192-976c-ad59de970ded</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>The Bank Account Hack That Could Save You Hundreds Every Year</title><link>https://www.fool.com/money/banks/articles/the-bank-account-hack-that-could-save-you-hundreds-every-year/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A woman sitting at her kitchen table and typing on a laptop next to paperwork." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fwoman_at_kitchen_table_with_laptop_and_paperwo.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="692ca"&gt;Most people don't think twice about where they keep their money. You set up a checking account, deposit your paycheck, pay your bills, and move on. But what if your bank account choice is actually costing you hundreds of dollars a year?&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=39507b92-dc74-40ae-90eb-b8fc1d0c38c1&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=39507b92-dc74-40ae-90eb-b8fc1d0c38c1&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="8vmun"&gt;The truth is, many banks quietly drain your money (or prevent it from growing) through fees and low interest rates. The good news is that a simple bank account hack could help you save hundreds effortlessly -- moving your money to a &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42" target="_blank"&gt;high-yield savings account&lt;/a&gt; (HYSA).&lt;/p&gt;&lt;h2 data-block-key="0djvg" id="the-hack:-automate-your-savings-with-a-high-yield-account"&gt;The hack: Automate your savings with a high-yield account&lt;/h2&gt;&lt;p data-block-key="ducvv"&gt;The biggest mistake most people make is keeping too much money in a checking or savings account that earns little to no interest. Instead, you should transfer your extra cash into a high-yield savings account and let it grow automatically.&lt;/p&gt;&lt;h3 data-block-key="8rkp4" id="step-1:-open-a-high-yield-savings-account"&gt;Step 1: Open a high-yield savings account&lt;/h3&gt;&lt;p data-block-key="chuqc"&gt;Traditional savings accounts currently pay an average APY of 0.41%, meaning your money barely grows, and it certainly doesn't keep pace with inflation. But HYSAs can pay 4.00% APY or more, meaning you'll earn nearly 10 times more on your savings.&lt;/p&gt;&lt;p data-block-key="30nh9"&gt;For example, if you keep $5,000 in an HYSA with a 4.00% APY, you'd earn $200 in interest in a year -- compared to just $20.50 in a typical savings account.&lt;/p&gt;&lt;p data-block-key="6o79o"&gt;&lt;i&gt;Don't miss out on extra interest earnings.&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our curated list of the best high-yield savings accounts today to maximize your APY&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;i&gt;.&lt;/i&gt;&lt;/p&gt;&lt;h3 data-block-key="wgghx" id="step-2:-set-up-automatic-transfers"&gt;Step 2: Set up automatic transfers&lt;/h3&gt;&lt;p data-block-key="vtcv"&gt;To make saving effortless, set up a recurring transfer from your &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42" target="_blank"&gt;checking account&lt;/a&gt; to your HYSA every payday, or utilize the option that some banks have to split your direct deposit between multiple accounts. Even $50 per paycheck can add up over time, and you likely won't notice it's gone from your checking account.&lt;/p&gt;&lt;h3 data-block-key="srzwa" id="step-3:-keep-only-what-you-need-in-checking"&gt;Step 3: Keep only what you need in checking&lt;/h3&gt;&lt;p data-block-key="bqgvo"&gt;Your checking account should only hold enough money for monthly bills and day-to-day spending. Anything extra should be moved to your high-yield savings account, where it can earn interest instead of sitting idle.&lt;/p&gt;&lt;h2 data-block-key="ly7zu" id="bonus:-avoid-hidden-bank-fees-that-drain-your-money"&gt;Bonus: Avoid hidden bank fees that drain your money&lt;/h2&gt;&lt;p data-block-key="b8gon"&gt;Another way banks cost you money is by charging you unnecessary fees. Some traditional banks charge:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="fdhen"&gt;Monthly maintenance fees: $5 to $30 per month ($60-$360 per year).&lt;/li&gt;&lt;li data-block-key="6bkaa"&gt;ATM fees: $3 to $5 per withdrawal if you use an out-of-network ATM -- the fee is shared between your bank and the ATM owner.&lt;/li&gt;&lt;li data-block-key="1h26b"&gt;Overdraft fees: $20 to $30 or more per occurrence.&lt;/li&gt;&lt;/ul&gt;&lt;h3 data-block-key="zcivz" id="how-to-stop-paying-fees"&gt;How to stop paying fees&lt;/h3&gt;&lt;ul&gt;&lt;li data-block-key="92sof"&gt;&lt;b&gt;Switch to a no-fee savings account.&lt;/b&gt; Luckily, many high-yield savings accounts have no monthly fees, no overdraft fees, and nationwide ATM fee reimbursements.&lt;/li&gt;&lt;li data-block-key="en64u"&gt;&lt;b&gt;Use direct deposit to meet minimum balance requirements.&lt;/b&gt; Some banks waive fees if you set up direct deposit.&lt;/li&gt;&lt;li data-block-key="42qk4"&gt;&lt;b&gt;Set up overdraft protection.&lt;/b&gt; Link your checking and savings accounts so money is automatically transferred if needed.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="c5u1q"&gt;By simply choosing a better bank account, you could save hundreds of dollars per year in fees alone.&lt;/p&gt;&lt;h2 data-block-key="10jy0" id="make-the-switch-today"&gt;Make the switch today&lt;/h2&gt;&lt;p data-block-key="d5ac1"&gt;Saving money doesn't have to be complicated. By switching to a high-yield savings account, setting up automatic transfers, and avoiding hidden bank fees, you may be able to save hundreds of dollars a year -- without changing your lifestyle.&lt;/p&gt;&lt;p data-block-key="dtqur"&gt;This simple bank account move could be one of the easiest money-saving startegies you ever put into place. Don't wait any longer.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=07b236cd-6119-46d2-907e-ff83f2543db7&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=07b236cd-6119-46d2-907e-ff83f2543db7&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/Legal/fool-disclosure-policy.aspx"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 03 Feb 2025 05:30:19 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/the-bank-account-hack-that-could-save-you-hundreds-every-year/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=4bf81701-7368-42b6-9ffd-fabc390b0f42</guid><category domain="https://www.fool.com/guid">4bf81701-7368-42b6-9ffd-fabc390b0f42</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>The 4 Biggest Credit Card Mistakes That Are Costing You Money</title><link>https://www.fool.com/money/credit-cards/articles/the-4-biggest-credit-card-mistakes-that-are-costing-you-money/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young woman holding a credit card looks surprised while she checks a laptop." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fcredit_card_mistake_grHKrQo.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="mrx0z"&gt;Credit cards can help you earn rewards, build credit, and even get perks like airport lounge access. But if you're not using them wisely, they can also cost you hundreds (or even thousands) of dollars every year in fees, interest, and missed opportunities.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c7a70333-0596-4ed0-9279-b0f5b03586ac&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c7a70333-0596-4ed0-9279-b0f5b03586ac&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="7ielr"&gt;The good news? Most credit card mistakes are easy to fix once you know what to watch out for. Here are four of the biggest credit card mistakes that could be draining your wallet -- and how to avoid them.&lt;/p&gt;&lt;h2 data-block-key="lopzg" id="1.-carrying-a-balance-and-paying-interest"&gt;1. Carrying a balance and paying interest&lt;/h2&gt;&lt;p data-block-key="52bjq"&gt;One of the most common and expensive mistakes is carrying a balance from month to month. Credit cards have some of the highest interest rates, with the average APR hovering around 25%. If you're not paying your balance off in full -- or only making minimum payments -- your balance can quickly snowball, costing you untold amounts in interest.&lt;/p&gt;&lt;p data-block-key="8l8v7"&gt;If you already have credit card debt, consider using &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0" target="_blank"&gt;a balance transfer card&lt;/a&gt; to pay it off faster and avoid interest charges.&lt;/p&gt;&lt;h2 data-block-key="91dea" id="2.-ignoring-your-credit-card-rewards"&gt;2. Ignoring your credit card rewards&lt;/h2&gt;&lt;p data-block-key="4ta0m"&gt;The perks and rewards offered by your credit cards are among the biggest reasons to use credit cards to begin with. For example, the &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0" target="_blank"&gt;best travel rewards cards&lt;/a&gt; can save you hundreds of dollars each year, while also giving you access to things like airport lounges and airplane seat upgrades.&lt;/p&gt;&lt;p data-block-key="1sfcr"&gt;But you have to use these cards strategically to maximize their value.&lt;/p&gt;&lt;p data-block-key="8ohkh"&gt;If you're not taking full advantage of your credit card rewards, you're leaving money on the table. Some of the &lt;a href="https://www.fool.com/money/credit-cards/best-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0" target="_blank"&gt;best rewards cards&lt;/a&gt; offer cash back, travel perks, and bonus points, but you have to choose a card that fits your spending habits so you can earn rewards on the money you're already spending.&lt;/p&gt;&lt;h2 data-block-key="y0i4e" id="3.-applying-for-too-many-cards-at-once"&gt;3. Applying for too many cards at once&lt;/h2&gt;&lt;p data-block-key="eg5pt"&gt;While having multiple credit cards can be beneficial, applying for too many at once can hurt your credit score. Each application results in a hard inquiry, which can temporarily lower your score. Plus, opening several new accounts at once can make lenders see you as a higher-risk borrower. Some issuers, like Chase, even have rules in place about how many of their cards you can apply for in a year.&lt;/p&gt;&lt;p data-block-key="dnccl"&gt;Be strategic about applying for new credit cards. Space out your applications and only apply for cards that align with your financial goals.&lt;/p&gt;&lt;p data-block-key="b5hn7"&gt;&lt;i&gt;Worried that your credit cards aren't earning you the best rewards rates on the market?&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of best credit cards now.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="2iwx9" id="4.-closing-old-credit-cards-too-soon"&gt;4. Closing old credit cards too soon&lt;/h2&gt;&lt;p data-block-key="ek1ak"&gt;It might seem like a good idea to close a credit card you don't use, but doing so can actually hurt your credit score. That's because closing a card reduces your total available credit, which can increase your credit utilization ratio -- a key factor in your score. Your credit utilization ratio is the total amount of your balances divided by your total available credit.&lt;/p&gt;&lt;p data-block-key="5jd69"&gt;Your credit score also takes into account the length of your credit history. The longer you've been responsibly using credit, the better. Closing old accounts will shorten your credit history and possibly negatively impact your credit score.&lt;/p&gt;&lt;p data-block-key="725cp"&gt;Keep old credit cards open, especially if they don't have an annual fee. If you're worried about inactivity, set up a small recurring charge (like a streaming subscription) and automate the payment.&lt;/p&gt;&lt;h2 data-block-key="3cnm1" id="the-bottom-line"&gt;The bottom line&lt;/h2&gt;&lt;p data-block-key="5tqe1"&gt;When used to our advantage, credit cards can be a boon for cash back, rewards points, and other perks. Just be careful to avoid these common mistakes that will ultimately ensure your credit cards do more harm than good.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d6727167-2ffd-492b-b33a-34603b478176&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d6727167-2ffd-492b-b33a-34603b478176&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.JPMorgan Chase is an advertising partner of Motley Fool Money. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 02 Feb 2025 06:30:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/the-4-biggest-credit-card-mistakes-that-are-costing-you-money/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=1d99d48b-9632-4671-b63c-67bf8f6a7ae0</guid><category domain="https://www.fool.com/guid">1d99d48b-9632-4671-b63c-67bf8f6a7ae0</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Do You Really Need $1 Million to Retire?</title><link>https://www.fool.com/money/banks/articles/do-you-really-need-1-million-to-retire/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="older couple smiling as they drive in a convertible" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fretire-early-retirement-enjoy-future-money-inc.width-793_3f1gGW1.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="wrj2n"&gt;It's been at least 20 years since $1 million became the "default" retirement savings goal. Somehow, a lot of people agreed that we needed to save at least that much to get by in retirement.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=91b3af70-1fc7-4cfc-8623-fcec0b2c15f9&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=91b3af70-1fc7-4cfc-8623-fcec0b2c15f9&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="1gss8"&gt;If they were right, then we'd need to save much more today. Inflation has driven prices up more than 60% over the past two decades.&lt;/p&gt;&lt;p data-block-key="4r6m8"&gt;The truth is that even in 2025, most Americans in their mid-60s could get by on less than $1 million if they retired now. However, many would have to make sacrifices and live frugally to make sure their savings never ran out.&lt;/p&gt;&lt;p data-block-key="55nvi"&gt;Let's go over how to figure out how much you really need to save.&lt;/p&gt;&lt;h2 data-block-key="lclds" id="start-with-your-target-income"&gt;Start with your target income&lt;/h2&gt;&lt;p data-block-key="47fuv"&gt;Decide how much income you'll need to live the lifestyle you want in retirement. Keep in mind that most people spend less in retirement -- partly because they're no longer &lt;i&gt;saving&lt;/i&gt; for retirement, but for other reasons as well.&lt;/p&gt;&lt;p data-block-key="7om0d"&gt;For example, here are some reasons you may not need as much income:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="ea3kn"&gt;You've paid off your &lt;a href="https://www.fool.com/money/mortgages/best-mortgage-lenders/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" target="_blank"&gt;mortgage&lt;/a&gt;&lt;/li&gt;&lt;li data-block-key="9pt12"&gt;You've downsized your home&lt;/li&gt;&lt;li data-block-key="4vq7q"&gt;You've moved to a low-cost-of-living area&lt;/li&gt;&lt;li data-block-key="6ve6n"&gt;You no longer need to commute to work every day&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="d5evr"&gt;All these factors and more can dramatically reduce your spending.&lt;/p&gt;&lt;p data-block-key="drp7"&gt;At the same time, you should plan for your medical expenses to go up. Fidelity Investments estimated that an average 65-year-old retiring in 2024 would spend about $165,000 on healthcare throughout retirement. Some retirees will spend much more than that, especially if they need long-term care.&lt;/p&gt;&lt;p data-block-key="p99f"&gt;And if you plan to live it up in retirement -- say, by traveling the world or enjoying a high-cost hobby -- then you'll need to account for that as well.&lt;/p&gt;&lt;p data-block-key="2ht0s"&gt;Most people can safely assume they'll need to replace about 80% of their pre-retirement income to maintain their standard of living. Some need less than that, but it doesn't hurt to aim high.&lt;/p&gt;&lt;h3 data-block-key="e5yqf" id="don't-forget-social-security"&gt;Don't forget Social Security&lt;/h3&gt;&lt;p data-block-key="78u8p"&gt;Most American retirees receive Social Security benefits. These can replace a substantial amount of your pre-retirement income -- about 40% on average.&lt;/p&gt;&lt;p data-block-key="1g7j5"&gt;If Social Security replaces 40% of your pre-retirement income, then you only need your savings to replace another 40% to reach that 80% goal. Don't rely too heavily on Social Security, though. The program is &lt;i&gt;not&lt;/i&gt; going to disappear or stop making payments, but there's a chance that benefits will be reduced in some fashion in the future.&lt;/p&gt;&lt;p data-block-key="7rvc4"&gt;To see an estimate of your future Social Security benefit, you can create an account on the &lt;a href="https://www.ssa.gov/myaccount/"&gt;Social Security Administration website&lt;/a&gt;.&lt;/p&gt;&lt;h2 data-block-key="t4a1e" id="use-the-4percent-rule-as-a-rough-guide"&gt;Use the 4% rule as a rough guide&lt;/h2&gt;&lt;p data-block-key="4as77"&gt;Emphasis on "rough." The 4% rule came about in the mid-1990s, and it was never really intended to be a &lt;i&gt;rule&lt;/i&gt;, though we call it one now.&lt;/p&gt;&lt;p data-block-key="e49q2"&gt;That said, it's still not a bad starting point for figuring out 1) how much you need to save for retirement and 2) how much money you can safely withdraw from your retirement savings each year.&lt;/p&gt;&lt;p data-block-key="7u0rf"&gt;The 4% rule says that you can safely withdraw 4% of your savings in your first year of retirement. Then, each year afterward, you adjust that amount for inflation.&lt;/p&gt;&lt;p data-block-key="3a3t"&gt;Say you have $1 million in savings. In your first year of retirement, you'd withdraw $40,000. If prices went up by 2% in that first year, then you'd increase your withdrawals by 2% to $40,800 the next year.&lt;/p&gt;&lt;p data-block-key="5tp0i"&gt;Going by this strategy, it's very unlikely that you'll exhaust your savings.&lt;/p&gt;&lt;p data-block-key="chdoh"&gt;And if you want to use the 4% rule to decide your retirement savings goal, you simply multiply your target income -- minus Social Security benefits and other income sources -- by 25.&lt;/p&gt;&lt;p data-block-key="1upep"&gt;&lt;i&gt;Want to supercharge your retirement savings by investing in stocks and saving thousands in taxes?&lt;/i&gt; &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best IRA brokers and open an individual retirement account today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h3 data-block-key="6sr8f" id="the-4percent-rule-is-not-fool-proof"&gt;The 4% rule is not fool-proof&lt;/h3&gt;&lt;p data-block-key="22u7"&gt;There are a million reasons why the 4% rule may not work for every retiree.&lt;/p&gt;&lt;p data-block-key="5vceh"&gt;First, it assumes that your portfolio is evenly split between stocks and bonds. Many retirees have more conservative investments, which means less risk but also less growth.&lt;/p&gt;&lt;p data-block-key="1klvm"&gt;It also assumes you'll be drawing down your retirement savings for up to 30 years. If you retire early, and/or you live much longer than the average person, then 4% per year may be more than you can safely withdraw.&lt;/p&gt;&lt;p data-block-key="1sp3u"&gt;Further, the 4% rule assumes you'll receive your full Social Security benefit -- the amount you'll receive if you claim benefits at your full retirement age (67 for most future retirees). If you claim benefits early and thus receive a smaller monthly benefit, then you may want to be more cautious with your retirement savings withdrawals.&lt;/p&gt;&lt;h2 data-block-key="srq8r" id="example:-target-retirement-income-of-dollar60000"&gt;Example: Target retirement income of $60,000&lt;/h2&gt;&lt;p data-block-key="b3n48"&gt;Let's say your income right before retirement is $75,000 a year, and you want to replace 80% of that. That's $60,000 a year.&lt;/p&gt;&lt;p data-block-key="etcht"&gt;Let's also say your expected Social Security benefit is $2,300 per month, or $27,600 per year. You'll need your savings to provide $32,400 per year.&lt;/p&gt;&lt;p data-block-key="vt8i"&gt;Going by the 4% rule, you'll need $32,400 x 25 -- that's $810,000 -- in retirement savings.&lt;/p&gt;&lt;p data-block-key="90mge"&gt;It's far less than a million -- but it's still an ambitious target for many Americans.&lt;/p&gt;&lt;h2 data-block-key="tql6y" id="don't-despair-if-you're-behind"&gt;Don't despair if you're behind&lt;/h2&gt;&lt;p data-block-key="68p19"&gt;As of 2022, the median retirement savings among Americans aged 65 to 74 was $200,000, according to the Federal Reserve. That means millions of American retirees are getting by on less money than the 4% rule suggests they need.&lt;/p&gt;&lt;p data-block-key="dvj27"&gt;Of course, many of them are on extremely tight budgets. If you want more security and financial breathing room, then save as much as you can now.&lt;/p&gt;&lt;p data-block-key="2o86n"&gt;A good retirement savings goal for most younger workers is 15% of their income, including any employer match. If you're aged 40 or older and not on track to reach your savings goal, then now is the time to dig deep and save as much as possible -- preferably 20% or more.&lt;/p&gt;&lt;p data-block-key="1gq45"&gt;Start with your 401(k), if you have one, and be sure to earn any employer match in full. Beyond that, look to an &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" target="_blank"&gt;individual retirement account (IRA)&lt;/a&gt;, which provides the same tax benefits as a 401(k). And if you max out your IRA, you can open a regular &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" target="_blank"&gt;brokerage account&lt;/a&gt; and invest even more through that.&lt;/p&gt;&lt;p data-block-key="5vm56"&gt;All of these accounts let you invest in high-growth assets like stocks and &lt;a href="https://www.fool.com/investing/how-to-invest/index-funds/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" target="_blank"&gt;index funds&lt;/a&gt;, as well as bonds and other low-risk assets. That means they give you a better shot at building the retirement nest egg you need.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=105e4aa8-62ce-4888-b70d-731b73c38b5a&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=105e4aa8-62ce-4888-b70d-731b73c38b5a&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.&lt;a href="https://www.fool.com/author/2869/"&gt;James McClenathen&lt;/a&gt; has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 02 Feb 2025 06:00:22 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/do-you-really-need-1-million-to-retire/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=a7cff4b6-43d7-46a2-bf56-af1c57cd80e3</guid><category domain="https://www.fool.com/guid">a7cff4b6-43d7-46a2-bf56-af1c57cd80e3</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>How Many Credit Cards Should You Have?</title><link>https://www.fool.com/money/credit-cards/articles/how-many-credit-cards-should-you-have/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Woman lying down sliding credit card into wallet with other cards spread out on her hair." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FToo_Many_Credit_Cards_Spring_Clean_Your_Wallet.width-793_2h01bng.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="iyiaf"&gt;There's no magic number of credit cards that works for everyone. How many cards someone should have depends on their spending habits, financial goals, and ability to manage multiple accounts responsibly.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=502a69ee-fb4a-4515-ae57-52aa174c7ee3&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=502a69ee-fb4a-4515-ae57-52aa174c7ee3&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="70d4i"&gt;There's no such thing as having too many credit cards. Having multiple cards allows you to maximize your rewards for different types of spending, improves your credit utilization ratio, and provides backup options in case one of your cards is lost or stolen. But opening too many cards without a strategy can make it harder to track payments and could lead to overspending.&lt;/p&gt;&lt;h2 data-block-key="j3q15" id="why-having-more-than-one-credit-card-can-be-a-smart-move"&gt;Why having more than one credit card can be a smart move&lt;/h2&gt;&lt;p data-block-key="eo1pc"&gt;There are multiple ways that having more than one card in your wallet could benefit you.&lt;/p&gt;&lt;h3 data-block-key="1k1bq" id="1.-maximizes-rewards-and-benefits"&gt;1. Maximizes rewards and benefits&lt;/h3&gt;&lt;p data-block-key="77tj9"&gt;Not all credit cards reward the same types of spending. Some cards offer &lt;a href="https://www.fool.com/money/credit-cards/best-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f" target="_blank"&gt;high cash back&lt;/a&gt; on groceries, while others may offer higher rewards rates on dining out or booking travel. Having multiple cards allows you to take advantage of different reward structures.&lt;/p&gt;&lt;p data-block-key="2uffn"&gt;For example, you might use:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="7inuv"&gt;One card for 4X points on dining and groceries.&lt;/li&gt;&lt;li data-block-key="3cmde"&gt;&lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f" target="_blank"&gt;A travel card&lt;/a&gt; for bonus points on flights and hotels.&lt;/li&gt;&lt;li data-block-key="5geq8"&gt;A flat-rate cash back card for all other purchases.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="aojfp"&gt;This strategy ensures you're getting the most out of every dollar you spend.&lt;/p&gt;&lt;h3 data-block-key="e5k06" id="2.-improves-your-credit-utilization-ratio"&gt;2. Improves your credit utilization ratio&lt;/h3&gt;&lt;p data-block-key="8aqof"&gt;One of the biggest factors determining your credit score is your credit utilization ratio, which is your outstanding balances divided by your total credit limit. Keeping this ratio low (under 30%, and ideally under 10%) helps maintain a strong credit score.&lt;/p&gt;&lt;p data-block-key="6s82u"&gt;If you have one credit card with a $5,000 limit and a $2,500 balance, your utilization is 50%, which is high. But if you add a second card with a $5,000 limit (without increasing your balance), your total available credit doubles to $10,000, and your utilization drops to 25% -- a positive move for your credit score.&lt;/p&gt;&lt;h3 data-block-key="6o7xr" id="3.-provides-backup-and-security"&gt;3. Provides backup and security&lt;/h3&gt;&lt;p data-block-key="16hip"&gt;If you only have one credit card, and it's lost, stolen, or frozen due to fraud, you could be stuck without a way to pay. Having at least one backup card ensures you're covered in emergencies. Different cards also offer different purchase protections. One card might extend the factory warranty on the new TV you just bought, while another provides free rental car or cellphone insurance.&lt;/p&gt;&lt;p data-block-key="9t0n2"&gt;&lt;i&gt;Make sure you're earning the most rewards on your everyday spending.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best credit cards now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="9shy2" id="when-having-too-many-cards-becomes-a-problem"&gt;When having too many cards becomes a problem&lt;/h2&gt;&lt;p data-block-key="bcqnq"&gt;While multiple credit cards can be beneficial, opening too many at once or mismanaging them can hurt your finances. Here are a few red flags that may indicate signs of trouble:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="9fn94"&gt;&lt;b&gt;You struggle to keep track of due dates.&lt;/b&gt; Missing payments will get you hit with late fees, and payments 30 days past due can hurt your credit score.&lt;/li&gt;&lt;li data-block-key="f4j1h"&gt;&lt;b&gt;You're tempted to spend more than you can afford.&lt;/b&gt; More available credit doesn't mean more free money -- it's easy to rack up debt if you're not careful.&lt;/li&gt;&lt;li data-block-key="3bh68"&gt;&lt;b&gt;You're applying for too many cards at once.&lt;/b&gt; Each application triggers a hard inquiry on your credit report, which can temporarily lower your score.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="9vcj0"&gt;If you're new to credit or tend to carry a balance, it's best to stick with one or two cards and focus on responsible use before adding more.&lt;/p&gt;&lt;h2 data-block-key="ldqcm" id="so-how-many-credit-cards-are-right-for-you"&gt;So, how many credit cards are right for you?&lt;/h2&gt;&lt;p data-block-key="8e6vu"&gt;For a lot of people, having two to three credit cards is the sweet spot. It provides enough flexibility for rewards and credit utilization without being overwhelming.&lt;/p&gt;&lt;p data-block-key="fe15g"&gt;However, if you're a frequent traveler or a rewards enthusiast who can manage multiple accounts responsibly, having four or more cards might work well for you. Just be sure to track your spending, set up autopay to avoid missed payments, and avoid carrying high balances.&lt;/p&gt;&lt;p data-block-key="1b5q4"&gt;On the flip side, if you prefer to keep things simple, one well-rounded credit card can still provide great benefits without the hassle of juggling multiple accounts.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=811a695e-374e-45de-98c4-b0ef6605ea2b&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=811a695e-374e-45de-98c4-b0ef6605ea2b&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 31 Jan 2025 08:30:27 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/how-many-credit-cards-should-you-have/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=bb692d8f-553a-49fe-921b-bfb6e26ef70f</guid><category domain="https://www.fool.com/guid">bb692d8f-553a-49fe-921b-bfb6e26ef70f</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Saving for Retirement? Don't Make These 5 Huge Mistakes</title><link>https://www.fool.com/money/banks/articles/saving-for-retirement-dont-make-these-5-huge-mistakes/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young woman reviews her personal finances using print-outs and a tablet at home." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-1214479802_GsrkH9o.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="1tynq"&gt;Saving for retirement can feel overwhelming, but it doesn't have to. While it's normal to make a few missteps along the way, some mistakes can seriously derail your plans.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d415f93c-d72f-4917-92ea-b365ad110bd9&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d415f93c-d72f-4917-92ea-b365ad110bd9&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="ngsd"&gt;The good news is most of these pitfalls are easy to avoid once you know what to watch out for.&lt;/p&gt;&lt;p data-block-key="71ho5"&gt;Here are five in particular that it's best to steer clear of.&lt;/p&gt;&lt;h2 data-block-key="lzb52" id="1.-waiting-to-start-saving"&gt;1. Waiting to start saving&lt;/h2&gt;&lt;p data-block-key="5h1ae"&gt;Time is your greatest ally when it comes to retirement savings. The earlier you start saving, the more time your money has to grow through the power of compound interest. Waiting even a few years to get started can mean losing out on tens of thousands of dollars in potential earnings.&lt;/p&gt;&lt;p data-block-key="8e82f"&gt;For example, if you start saving $200 a month at age 25 with a 7% annual return, you'll have nearly $500,000 by age 65. Wait until age 35 to start saving the same amount? You'll have only about $235,000.&lt;br/&gt;&lt;br/&gt;If you haven't started saving yet, don't panic -- it's better to start now than never. Increase your contributions as much as possible and take advantage of employer-sponsored plans, like 401(k)s, that offer matching contributions.&lt;/p&gt;&lt;p data-block-key="ebr9m"&gt;&lt;i&gt;Want to earn more than nine times the national average APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and start earning more today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="oslz6" id="2.-not-taking-advantage-of-employer-matching"&gt;2. Not taking advantage of employer matching&lt;/h2&gt;&lt;p data-block-key="bng69"&gt;Speaking of 401(k) matching, failing to take full advantage of this benefit is like leaving free money on the table. Many employers will match a percentage of your contributions to your retirement plan, essentially giving you an instant return on your investment.&lt;/p&gt;&lt;p data-block-key="a2jev"&gt;For example, if your employer offers a 50% match on contributions up to 6% of your salary, and you earn $50,000 a year, that's an extra $1,500 added to your retirement savings annually -- at no extra cost to you.&lt;br/&gt;&lt;br/&gt;If you can, it's best to contribute at least enough to get the full employer match. If money is tight, start small and gradually increase your contributions over time. You'll be surprised how quickly it adds up.&lt;/p&gt;&lt;h2 data-block-key="lt2o7" id="3.-neglecting-tax-advantaged-accounts"&gt;3. Neglecting tax-advantaged accounts&lt;/h2&gt;&lt;p data-block-key="u7g8"&gt;When saving for retirement, the type of account you use matters. Ignoring tax-advantaged accounts, such as 401(k)s or IRAs, can lead to paying more in taxes than necessary.&lt;/p&gt;&lt;p data-block-key="c0lsk"&gt;"Traditional" retirement accounts let you save on taxes now by contributing pre-tax dollars, while Roth accounts offer tax-free withdrawals in retirement. Neglecting these options could cost you thousands in tax savings over the years.&lt;br/&gt;&lt;br/&gt;Learn the differences between traditional and Roth accounts to decide which is best for you. If your employer offers a 401(k), start there, especially if they match contributions. If not, open an IRA and begin contributing regularly.&lt;/p&gt;&lt;h2 data-block-key="b9hr5" id="4.-forgetting-to-adjust-investments-as-you-age"&gt;4. Forgetting to adjust investments as you age&lt;/h2&gt;&lt;p data-block-key="5f69g"&gt;When you're younger, it makes sense to invest more aggressively in stocks since you have time to ride out market fluctuations. But as you get closer to retirement, failing to adjust your investments toward less risky options like bonds or stable funds could jeopardize your savings.&lt;br/&gt;&lt;br/&gt;Use a strategy that gradually shifts your portfolio to more conservative investments as you age. Many target-date retirement funds automatically do this for you, making them a great option if you want to set it and forget it.&lt;/p&gt;&lt;h2 data-block-key="4s9s8" id="5.-cashing-out-early"&gt;5. Cashing out early&lt;/h2&gt;&lt;p data-block-key="9stl1"&gt;Cashing out your retirement savings before you retire is one of the costliest mistakes you can make. Not only could you face hefty penalties for early withdrawals from a 401(k) or IRA (if you're under age 59 1/2), but you'll also lose out on potential growth.&lt;/p&gt;&lt;p data-block-key="bvqk2"&gt;For example, cashing out $10,000 today might leave you with just $8,000 after taxes and penalties -- and that's before you consider the long-term growth you're sacrificing. Over 30 years, that $10,000 could have grown to more than $76,000 with a 7% annual return.&lt;br/&gt;&lt;br/&gt;If you leave a job, roll your 401(k) over into an IRA or your new employer's plan instead of cashing out. And if you're in financial trouble, explore other options -- like cutting expenses or taking out a personal loan -- before touching your retirement savings.&lt;/p&gt;&lt;h2 data-block-key="3ho6s" id="bonus-mistake-to-avoid:-not-knowing-how-much-you'll-need"&gt;Bonus mistake to avoid: Not knowing how much you'll need&lt;/h2&gt;&lt;p data-block-key="dpehn"&gt;One of the most common mistakes is simply not knowing how much money you'll need in retirement. Underestimating the cost of retirement, inflation, healthcare expenses, or the fact that you may live 20 to 30 years without a paycheck can leave you financially vulnerable in your senior years.&lt;br/&gt;&lt;br/&gt;Use an &lt;a href="https://www.fool.com/calculators/index/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e" target="_blank"&gt;online retirement calculator&lt;/a&gt; to estimate how much you'll need based on your age, current savings, and expected lifestyle. Adjust your savings rate if you're falling behind. A general rule of thumb is to aim for 15% of your income, including employer contributions.&lt;/p&gt;&lt;h2 data-block-key="iq2yw" id="better-late-than-never"&gt;Better late than never&lt;/h2&gt;&lt;p data-block-key="fv455"&gt;Saving for retirement doesn't have to be complicated, and it's made much easier by avoiding these costly mistakes. By making smart choices and getting started now, you'll set yourself up for a comfortable retirement -- and your future self will thank you.&lt;/p&gt;&lt;p data-block-key="67pis"&gt;Ready to make the most of your retirement savings? Start reviewing your accounts today and check out our list of the &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e" target="_blank"&gt;best IRA accounts&lt;/a&gt;.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=94d8a3da-03aa-448c-bc45-22ebbbe97a50&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=94d8a3da-03aa-448c-bc45-22ebbbe97a50&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 31 Jan 2025 07:30:21 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/saving-for-retirement-dont-make-these-5-huge-mistakes/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c5298b8c-2e9a-4107-bbc7-5fc58b99271e</guid><category domain="https://www.fool.com/guid">c5298b8c-2e9a-4107-bbc7-5fc58b99271e</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Why I'm Moving Money Out of My High-Yield Savings Account</title><link>https://www.fool.com/money/banks/articles/why-im-moving-money-out-of-my-high-yield-savings-account/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young man sitting on his couch with his laptop open and his dog sleeping next to him." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fyoung_man_on_laptop_on_couch_with_dog_QRysiD0.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="doufa"&gt;&lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" target="_blank"&gt;High-yield savings accounts&lt;/a&gt; (HYSAs) are the best place for your emergency fund. Your deposits are safe and FDIC insured, you can tap them whenever you need to, and they'll grow over time.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c2f8cdcf-f281-477a-ba68-a86a4191aa52&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c2f8cdcf-f281-477a-ba68-a86a4191aa52&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="8me49"&gt;But once your savings balance is big enough, you may want to start putting cash elsewhere. Recently, I moved some money out of my HYSA and into my Roth IRA.&lt;/p&gt;&lt;p data-block-key="8fdgl"&gt;Here are three reasons why.&lt;/p&gt;&lt;h2 data-block-key="x0gm2" id="1.-i-reached-my-emergency-savings-goal"&gt;1. I reached my emergency savings goal&lt;/h2&gt;&lt;p data-block-key="do7n1"&gt;Experts often recommend keeping three to six months' worth of living expenses in an emergency fund. This money acts as a safety net in case you lose your job or face an unexpected expense, like a car repair or a medical emergency.&lt;/p&gt;&lt;p data-block-key="apl4d"&gt;I recently checked in on my bank accounts and realized I had more than enough saved to handle emergencies. So I decided to take some cash out and put it to better use with higher growth potential.&lt;/p&gt;&lt;p data-block-key="2mu3m"&gt;&lt;i&gt;Want to earn more than nine times the national average APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and start earning more today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="exp3h" id="2.-my-roth-ira-is-the-best-place-for-long-term-savings"&gt;2. My Roth IRA is the best place for long-term savings&lt;/h2&gt;&lt;p data-block-key="a3us5"&gt;About 15% of my salary goes into my 401(k), including my employer match. After that, I put my disposable income into a &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" target="_blank"&gt;Roth IRA&lt;/a&gt;. That way, I can invest the money in the stock market and enjoy years of tax-free growth.&lt;/p&gt;&lt;p data-block-key="ftnje"&gt;A Roth IRA is a special type of account for retirement savings. Any investments held in the account are exempt from capital gains tax and dividend tax. And because income tax is paid on the money the year you earn it, once you reach age 59 1/2, you can start withdrawing the funds tax free. These tax breaks could save you tens of thousands of dollars in retirement. (There are some caveats, and not everyone is eligible to contribute to a Roth IRA. Read up on the &lt;a href="https://www.fool.com/retirement/plans/roth-ira/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" target="_blank"&gt;Roth IRA rules&lt;/a&gt; to learn more.)&lt;/p&gt;&lt;p data-block-key="cu54l"&gt;Personally, I invest most of my Roth IRA in an S&amp;P 500 index fund. It's an &lt;a href="https://www.fool.com/investing/how-to-invest/etfs/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" target="_blank"&gt;exchange-traded fund&lt;/a&gt; that allows me to invest in 500 of the biggest U.S. companies at once. I get instant diversification and much higher returns than I could ever earn from a savings account.&lt;/p&gt;&lt;p data-block-key="7vl4o"&gt;Over the past five years alone, the S&amp;P 500 Index has gained &lt;b&gt;87%&lt;/b&gt;. That's about four times the amount the best savings accounts could have earned me.&lt;/p&gt;&lt;h2 data-block-key="phrje" id="3.-savings-accounts-can-lose-value-to-inflation"&gt;3. Savings accounts can lose value to inflation&lt;/h2&gt;&lt;p data-block-key="aeb8e"&gt;Even the best HYSAs may have interest rates that are lower than the rate of inflation. In 2022, consumer prices in the U.S. rose by 8% -- far more than the APY of any savings account. Even in years with much lower inflation, the best savings accounts may barely come out ahead.&lt;/p&gt;&lt;p data-block-key="cgv03"&gt;While an HYSA is great for short-term needs, I don't want all my money sitting in an account where it could lose spending power. Investing in the stock market allows me to achieve the growth I need to save for a happy retirement.&lt;/p&gt;&lt;h2 data-block-key="b7w71" id="an-hysa-is-still-a-must-have-for-me"&gt;An HYSA is still a must-have for me&lt;/h2&gt;&lt;p data-block-key="1ig51"&gt;I'll never empty my HYSA completely (I hope!). Savings accounts are still the best place for money you'll need in the near future. I consider HYSAs essential for:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="b30rp"&gt;&lt;b&gt;Emergency funds:&lt;/b&gt; Keep enough money in the account to cover at least three to six months of expenses.&lt;/li&gt;&lt;li data-block-key="an7qu"&gt;&lt;b&gt;Short-term goals:&lt;/b&gt; Use an HYSA for goals like saving for a vacation, wedding, or home renovation happening within the next year or two.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="a7mhb"&gt;Beyond that, most people should invest in higher-growth investments like stocks -- preferably in an IRA -- and hold them for years. It's one of the best ways to set yourself up for long-term financial security.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=68d31f54-c668-4e2e-8f4a-a2835df1c324&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=68d31f54-c668-4e2e-8f4a-a2835df1c324&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 31 Jan 2025 07:00:30 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/why-im-moving-money-out-of-my-high-yield-savings-account/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f27facf9-d59d-4675-a70b-a75546e86402</guid><category domain="https://www.fool.com/guid">f27facf9-d59d-4675-a70b-a75546e86402</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Master Your Money: How Google Sheets Can Help You Build the Perfect Budget</title><link>https://www.fool.com/money/banks/articles/master-your-money-how-google-sheets-can-help-you-build-the-perfect-budget/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Woman at computer budgeting." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fwoman_at_computer_budgeting_MUlXmUg.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="uf91p"&gt;Budgeting doesn't have to be complicated -- or expensive. With Google Sheets, you have a powerful, free tool to track your income, manage expenses, and work toward your financial goals. Whether you're saving for a big purchase, &lt;a href="https://www.fool.com/money/personal-loans/best-personal-loans-debt-consolidation/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36" target="_blank"&gt;paying off debt&lt;/a&gt;, or simply trying to live within your means, Google Sheets can help you get there.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=211fc425-7748-4c40-be96-56fa370bcadf&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=211fc425-7748-4c40-be96-56fa370bcadf&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="4etdn"&gt;Whether you want to use one of Google Sheets' existing templates or build your own budget from scratch, here's how to level up your finances.&lt;/p&gt;&lt;h2 data-block-key="j2ow7" id="why-google-sheets-is-an-excellent-budgeting-tool"&gt;Why Google Sheets is an excellent budgeting tool&lt;/h2&gt;&lt;p data-block-key="binsv"&gt;Google Sheets stands out as a budgeting tool because it's versatile and free to use. Unlike most budgeting apps, Google Sheets gives you the flexibility to customize every detail of your budget. You can tailor categories, add formulas, and even create visual charts to track your progress.&lt;/p&gt;&lt;p data-block-key="7vp31"&gt;Just like other major budgeting apps, you can access your Google Sheets budget on your laptop, phone, or tablet from anywhere, and updates are saved automatically. If you're sharing financial responsibilities with a spouse or partner, you can give them access to your sheet, ensuring that you're both on the same page.&lt;/p&gt;&lt;h2 data-block-key="1hsk2" id="the-best-budgeting-templates-in-google-sheets"&gt;The best budgeting templates in Google Sheets&lt;/h2&gt;&lt;p data-block-key="duoqq"&gt;Google Sheets templates provide a quick and easy way to build your budget. One of the most popular options is the Monthly Budget template, which you can find directly in the Google Sheets Template Gallery. This template is perfect for beginners, with formulas already in place, prebuilt categories for income and expenses, as well as a summary section that shows whether you're on track or over budget. It's simple, intuitive, and gets the job done.&lt;/p&gt;&lt;p data-block-key="1si9i"&gt;For those who want to plan further ahead, the Annual Budget template is an excellent choice. It provides a bird's-eye view of your finances for the entire year, breaking your income and spending into monthly segments. This template is particularly helpful for long-term planning, like saving for a down payment or setting aside money for annual expenses such as insurance premiums or holiday shopping.&lt;/p&gt;&lt;p data-block-key="ilvp"&gt;If you're focused on understanding the details of your spending habits, consider using an Expense Tracker template. This type of sheet lets you log individual transactions, organize them by category, and analyze patterns over time. It's especially useful for identifying areas where you might be overspending and for creating actionable plans to cut back.&lt;/p&gt;&lt;p data-block-key="3ce8q"&gt;Finally, for savers, a Savings Goal Tracker template can help you visualize your progress toward a financial goal, like building an &lt;a href="https://www.fool.com/terms/e/emergency-fund/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36" target="_blank"&gt;emergency fund&lt;/a&gt; or saving for a vacation. These templates often include graphs or progress bars, which are great for staying motivated.&lt;/p&gt;&lt;div class="image"&gt;&lt;img alt="Google sheets budgeting template screenshot" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Foriginal_images%2FGoogle_sheets_budgeting_screenshot_Ue2JzZr.png%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Screenshot provided by Jake Fitzgerald&lt;/p&gt;&lt;/div&gt;&lt;h2 data-block-key="180ex" id="customizing-templates-for-your-needs"&gt;Customizing templates for your needs&lt;/h2&gt;&lt;p data-block-key="eb6hb"&gt;One of the best features of Google Sheets templates is how easily they can be customized. Start by adjusting the categories to reflect your spending habits. For example, you might add categories like "Childcare," "Streaming Services," or "Fitness" if those are major parts of your budget.&lt;/p&gt;&lt;p data-block-key="31ugc"&gt;Next, you can modify the built-in formulas to calculate totals or balances based on your specific needs. If you're familiar with Google Sheets' tools, you can also add conditional formatting to highlight areas where spending exceeds your budget. This visual cue makes it easy to see where you need to cut back.&lt;/p&gt;&lt;h2 data-block-key="0r3v2" id="how-to-build-your-own-budget-in-google-sheets"&gt;How to build your own budget in Google Sheets&lt;/h2&gt;&lt;p data-block-key="afvur"&gt;If you want to be more hands-on, you can take complete control over your Google Sheets budget and build one from scratch -- it's easier than you might think. Start by opening a blank sheet and creating column headers such as "Date," "Description," "Category," "Amount," and "Remaining Budget." This basic structure will serve as the foundation for your budget.&lt;/p&gt;&lt;p data-block-key="94gis"&gt;You can use simple formulas to automate calculations. For example, the =SUM function can add up all your income or expenses, while subtraction formulas can help you track how much money you have left in each category.&lt;/p&gt;&lt;p data-block-key="7r6co"&gt;To make your budget visually appealing and easier to use, consider adding charts or graphs. With these features, your budget becomes more than just numbers -- it becomes a tool for visualizing your financial health.&lt;/p&gt;&lt;h2 data-block-key="xuqqq" id="why-your-bank-account-matters"&gt;Why your bank account matters&lt;/h2&gt;&lt;p data-block-key="adcbe"&gt;Even the most well-designed budget can only go so far if your bank account isn't working for you. Traditional accounts often come with hidden fees or low APYs. Switching to a fee-free &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36" target="_blank"&gt;checking account&lt;/a&gt; and high-yield savings account can make managing your money much easier and more efficient.&lt;/p&gt;&lt;p data-block-key="5lit6"&gt;Some online banks even integrate seamlessly with tools like Google Sheets. Pairing the right bank account with your budget can amplify your financial progress and help you reach your goals faster.&lt;/p&gt;&lt;p data-block-key="aeiro"&gt;&lt;i&gt;Ready to upgrade your bank account?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Click here to see a list of our favorite high-yield savings accounts&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt; where you can earn more than nine times the national average interest rate&lt;/i&gt;&lt;/b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/p&gt;&lt;h2 data-block-key="7y0gu" id="don't-keep-putting-it-off"&gt;Don't keep putting it off&lt;/h2&gt;&lt;p data-block-key="pn1j"&gt;Google Sheets is a versatile and powerful tool for creating a budget, whether you're using a premade template or building your own. By pairing Google Sheets with a high-yield, fee-free bank account, you'll be equipped to take control of your money and work toward financial freedom.&lt;/p&gt;&lt;p data-block-key="f16ds"&gt;Ready to start budgeting? Open Google Sheets, pick a template, and take the first step toward achieving your financial goals today.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=2b64f133-7637-4cd3-a68e-79095aa7afc0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=2b64f133-7637-4cd3-a68e-79095aa7afc0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool has positions in and recommends Alphabet and Intuit. The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 31 Jan 2025 06:00:29 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/master-your-money-how-google-sheets-can-help-you-build-the-perfect-budget/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=6c0b4f82-779b-44eb-8e99-535cc5fe0f36</guid><category domain="https://www.fool.com/guid">6c0b4f82-779b-44eb-8e99-535cc5fe0f36</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>5 Hidden Fees You're Paying at Your Bank (and How to Avoid Them)</title><link>https://www.fool.com/money/banks/articles/5-hidden-fees-youre-paying-at-your-bank-and-how-to-avoid-them/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A woman using an ATM on a sunny street." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FWoman_using_atm_HWWJWXK.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="ufvnp"&gt;When it comes to managing your money, your bank can be both a helpful ally and a sneaky source of unnecessary fees. Many bank customers don't realize they're paying extra charges every month for things they don't need, or worse, things they didn't even know existed.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=28351abd-16f7-456e-a191-a39eb6eff900&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=28351abd-16f7-456e-a191-a39eb6eff900&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="725md"&gt;The good news is that with a little awareness and some proactive steps, you can avoid them and save yourself some cash.&lt;/p&gt;&lt;p data-block-key="63qph"&gt;Here are &lt;b&gt;five hidden fees&lt;/b&gt; you might be paying at your bank -- and how to avoid them.&lt;/p&gt;&lt;h2 data-block-key="i7107" id="1.-monthly-maintenance-fees"&gt;1. Monthly maintenance fees&lt;/h2&gt;&lt;p data-block-key="78i9n"&gt;Some banks charge a monthly maintenance fee just for having an account. These fees typically range from $5 to $30 per month, which can add up to hundreds of dollars per year.&lt;/p&gt;&lt;p data-block-key="e2fq6"&gt;&lt;b&gt;How to avoid maintenance fees:&lt;/b&gt;&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="eiame"&gt;&lt;b&gt;Switch to a no-fee account:&lt;/b&gt; Luckily there are plenty of great banks that offer accounts with no maintenance fees whatsoever. Check out &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e" target="_blank"&gt;our list of best high-yield savings accounts&lt;/a&gt; to find a fee-free account.&lt;/li&gt;&lt;li data-block-key="1fqbm"&gt;&lt;b&gt;Meet minimum balance requirements:&lt;/b&gt; Many banks waive maintenance fees if you maintain a certain balance. Know the requirement before opening an account and make sure you can always meet the minimum.&lt;/li&gt;&lt;li data-block-key="fqnme"&gt;&lt;b&gt;Opt for online-only banks:&lt;/b&gt; Many online banks don't charge monthly fees. Look for banks that don't have physical branches but still offer competitive features, like high interest rates and no minimum balance requirements.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="2ihv2" id="2.-atm-fees"&gt;2. ATM fees&lt;/h2&gt;&lt;p data-block-key="emk6d"&gt;Using an ATM that's out of your bank's network can result in a hefty fee -- both from your bank and from the ATM operator. These charges often range from $2 to $5 per transaction, and they can add up quickly if you're frequently accessing cash from out-of-network machines.&lt;/p&gt;&lt;p data-block-key="6hrui"&gt;&lt;b&gt;How to avoid ATM fees:&lt;/b&gt;&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="9noi8"&gt;&lt;b&gt;Use in-network ATMs:&lt;/b&gt; Check to see if your bank has a large network of ATMs in your area. Many banks offer fee-free access to thousands of machines across the country.&lt;/li&gt;&lt;li data-block-key="1mcs3"&gt;&lt;b&gt;Reimbursements from your bank:&lt;/b&gt; Some banks, especially online banks, will reimburse you for out-of-network ATM fees. If your bank doesn't maintain its own ATMs, there's a good chance it'll reimburse any fees.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="f1u3e"&gt;&lt;i&gt;Hate losing money to ATM fees?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/guides-tools/banks-with-no-atm-fees/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of banks with no ATM fees and keep more money in your account&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="0ylmk" id="3.-overdraft-fees"&gt;3. Overdraft fees&lt;/h2&gt;&lt;p data-block-key="35e4i"&gt;Banks typically allow users to overdraft their accounts, and then charge the customer -- sometimes as much as $35 -- for overdrafting. If you don't keep an eye on your account balance, overdrafting could cost you hundreds of dollars.&lt;/p&gt;&lt;p data-block-key="4p3a5"&gt;&lt;b&gt;How to avoid overdraft fees:&lt;/b&gt;&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="7fqim"&gt;&lt;b&gt;Get an account with no overdraft fees:&lt;/b&gt; Plenty of banks these days don't have overdraft fees, and &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e" target="_blank"&gt;our best checking accounts page&lt;/a&gt; is a great place to browse new accounts.&lt;/li&gt;&lt;li data-block-key="286e"&gt;&lt;b&gt;Link to a savings account or credit line:&lt;/b&gt; Oftentimes banks allow you to link your checking account to a savings account or a line of credit for overdraft protection. This means the bank will cover the transaction using the linked account, preventing fees.&lt;/li&gt;&lt;li data-block-key="3ue84"&gt;&lt;b&gt;Set up account alerts:&lt;/b&gt; Most banks offer text or email alerts when your balance is low, giving you a heads up to transfer money before you overdraft.&lt;/li&gt;&lt;li data-block-key="9vbjb"&gt;&lt;b&gt;Use a debit card with overdraft protection:&lt;/b&gt; Some banks allow you to use overdraft protection, meaning your transaction will be automatically declined at checkout if you don't have sufficient funds. While this may be inconvenient, it can help you avoid fees.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="m95ff" id="4.-foreign-transaction-fees"&gt;4. Foreign transaction fees&lt;/h2&gt;&lt;p data-block-key="6ee98"&gt;If you travel abroad or make online purchases from international sellers, your bank may charge a fee for converting currencies. These fees typically range from 1% to 3% of the transaction, which can add up if you're making large or frequent international purchases.&lt;/p&gt;&lt;p data-block-key="dg0u0"&gt;&lt;b&gt;How to avoid foreign transaction fees:&lt;/b&gt;&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="46hih"&gt;&lt;b&gt;Look for a travel-friendly bank:&lt;/b&gt; Many modern banks and credit unions offer debit cards that don't charge foreign transaction fees. This can save you a significant amount of money on travel expenses.&lt;/li&gt;&lt;li data-block-key="c60p2"&gt;&lt;b&gt;Use a credit card with no foreign transaction fees:&lt;/b&gt; Some credit cards, particularly those designed for &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e" target="_blank"&gt;travel rewards&lt;/a&gt;, do not charge foreign transaction fees.&lt;/li&gt;&lt;li data-block-key="23dcp"&gt;&lt;b&gt;Use a multi-currency account:&lt;/b&gt; Some online banks and fintech platforms offer accounts that allow you to hold multiple currencies, helping you avoid conversion fees.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="5x1rc" id="5.-paper-statement-fees"&gt;5. Paper statement fees&lt;/h2&gt;&lt;p data-block-key="61p4i"&gt;In today's digital world, receiving paper statements for your bank accounts is becoming increasingly rare -- and costly. Banks often charge a monthly fee for paper statements, which can range from $1 to $5 per statement.&lt;/p&gt;&lt;p data-block-key="cs71h"&gt;&lt;b&gt;How to avoid paper statement fees:&lt;/b&gt;&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="9m4su"&gt;&lt;b&gt;Go paperless:&lt;/b&gt; Opt to receive electronic statements. By choosing paperless billing, you can eliminate this unnecessary fee. Plus, it's better for the environment!&lt;/li&gt;&lt;li data-block-key="dj2tf"&gt;&lt;b&gt;Set up automatic notifications:&lt;/b&gt; Most banks allow you to set up email or text alerts for when your statement is ready to be viewed online. You'll never miss a thing, and you'll avoid that extra fee.&lt;/li&gt;&lt;/ul&gt;&lt;h2 data-block-key="n4s9p" id="avoid-extra-fees-at-all-costs"&gt;Avoid extra fees at all costs&lt;/h2&gt;&lt;p data-block-key="36gso"&gt;Hidden fees are one of the easiest ways banks profit off of customers. But with a little bit of research and some proactive management, you can avoid these charges and keep more of your hard-earned money. Whether it's choosing the right account, opting for fee-free ATM usage, or avoiding overdraft fees, taking action today can have a big impact on your finances in the long run. Stay informed, be proactive, and take control of your accounts to prevent banking fees.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=fd3093d1-646e-410d-bea9-9f2b647cdde4&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=fd3093d1-646e-410d-bea9-9f2b647cdde4&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 28 Jan 2025 07:00:17 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/5-hidden-fees-youre-paying-at-your-bank-and-how-to-avoid-them/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=357b3ceb-63b7-4bb9-8540-b8dfc99d454e</guid><category domain="https://www.fool.com/guid">357b3ceb-63b7-4bb9-8540-b8dfc99d454e</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>7 Little-Known Credit Card Tips That Could Save You Money</title><link>https://www.fool.com/money/credit-cards/articles/7-little-known-credit-card-tips-that-could-save-you-money/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young woman making a call with her credit card and a laptop." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2Fcredit_card_calling_Div2q4W.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="plvii"&gt;Many people overlook valuable credit card perks and strategies that could save them money and boost their rewards. Whether you're brand new to credit or a seasoned cardholder, these seven little-known credit card tips could save you thousands of dollars over time.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=45431329-7941-40e1-9556-73b15995cbb5&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=45431329-7941-40e1-9556-73b15995cbb5&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;h2 data-block-key="jeqnj" id="1.-annual-fees-aren't-always-a-bad-deal"&gt;1. Annual fees aren't always a bad deal&lt;/h2&gt;&lt;p data-block-key="6tlg2"&gt;While it may seem like a waste to pay for a credit card, annual fees can often be worth it. Premium cards with fees as low as $95 can offer perks like travel credits, airport lounge access, or purchase protections that far exceed the cost. And that's not even including a welcome bonus that can easily be worth hundreds of dollars. Analyze your spending, and check out our &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" target="_blank"&gt;list of best credit cards&lt;/a&gt; to level up your wallet today.&lt;/p&gt;&lt;h2 data-block-key="9s5cq" id="2.-balance-transfer-offers-can-save-you-thousands"&gt;2. Balance transfer offers can save you thousands&lt;/h2&gt;&lt;p data-block-key="cq0tn"&gt;If you're carrying high-interest debt, &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" target="_blank"&gt;a balance transfer card&lt;/a&gt; can be a game-changer. Some credit cards offer 0% introductory APR on balance transfers for up to 21 months, allowing you to pay down your debt without accruing additional interest. However, be mindful of balance transfer fees, which typically range from 3% to 5% of the amount transferred.&lt;/p&gt;&lt;h2 data-block-key="bmhb7" id="3.-credit-limit-increases-can-improve-your-credit-score"&gt;3. Credit limit increases can improve your credit score&lt;/h2&gt;&lt;p data-block-key="amnkd"&gt;A higher credit limit isn't just about having more spending power -- it can also help improve your credit score. By increasing your credit limit, you lower your credit utilization ratio, a key factor in credit scoring. Your credit utilization ratio is your outstanding balances divided by your total available credit. Keeping that number below 30% is essential; strive for keeping it below 10% if you want to reach the highest credit score you can.&lt;/p&gt;&lt;p data-block-key="fm1ud"&gt;&lt;i&gt;Want to unlock more flexible spending and possibly raise your credit score?&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-high-limit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-limit credit cards now&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="inyuc" id="4.-rewards-can-expire"&gt;4. Rewards can expire&lt;/h2&gt;&lt;p data-block-key="4s03c"&gt;Your hard-earned rewards points or cash back bonuses aren't always guaranteed to last forever. Some &lt;a href="https://www.fool.com/money/credit-cards/best-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" target="_blank"&gt;rewards credit cards&lt;/a&gt; have expiration policies for unused rewards, typically ranging from 12 to 24 months of inactivity. To avoid losing value, review your card's terms and set a reminder to redeem your rewards before they expire.&lt;/p&gt;&lt;h2 data-block-key="u3w1q" id="5.-cards-offer-built-in-purchase-protection"&gt;5. Cards offer built-in purchase protection&lt;/h2&gt;&lt;p data-block-key="egm0e"&gt;Many credit cards include purchase protection as a standard benefit, covering theft, damage, or loss of eligible items within a specified timeframe. For example, if your new smartphone is stolen within 90 days of purchase, you may be reimbursed under your card's policy. Check your card's terms and conditions to see what's covered and how to file a claim.&lt;/p&gt;&lt;h2 data-block-key="3mnuz" id="6.-foreign-transaction-fees-are-avoidable"&gt;6. Foreign transaction fees are avoidable&lt;/h2&gt;&lt;p data-block-key="1chrt"&gt;Traveling abroad? Don't let foreign transaction fees -- which can add up to 3% to every purchase -- eat into your budget. Many &lt;a href="https://www.fool.com/money/credit-cards/best-travel-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" target="_blank"&gt;travel-focused credit cards&lt;/a&gt; waive these fees, saving you money on international purchases. Before your next trip, ensure you have a no foreign transaction fee card in your wallet.&lt;/p&gt;&lt;h2 data-block-key="g6omv" id="7.-paying-your-bill-twice-a-month-can-help-your-credit"&gt;7. Paying your bill twice a month can help your credit&lt;/h2&gt;&lt;p data-block-key="4nncb"&gt;Splitting your credit card payments into two installments per month can improve your credit score. This reduces the balance reported to credit bureaus, lowering your credit utilization ratio. For example, if you spend a total of $1,000 during the statement cycle, but you pay off $500 of that amount mid-cycle, your reported balance is significantly lower. This strategy is especially helpful for those aiming to build or repair credit.&lt;/p&gt;&lt;p data-block-key="4lp03"&gt;Understanding these little-known credit card facts can unlock significant savings and benefits. Review the terms and conditions of your current cards, and explore options that align with your financial goals. With the right strategies, your credit cards can become valuable tools for building wealth and financial security.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=69950278-3aca-4d44-bd35-a493fd9f715d&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=69950278-3aca-4d44-bd35-a493fd9f715d&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Tue, 28 Jan 2025 05:30:20 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/7-little-known-credit-card-tips-that-could-save-you-money/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=d36596ee-dfb7-4d70-9451-2b92de06b2e4</guid><category domain="https://www.fool.com/guid">d36596ee-dfb7-4d70-9451-2b92de06b2e4</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's How Much Money You Can Make With $10,000 in a High-Yield Savings Account</title><link>https://www.fool.com/money/banks/articles/heres-how-much-money-you-can-make-with-10000-in-a-high-yield-savings-account/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A pile of money with a seedling growing out of it" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FJester-money-001_Svywi4o.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: The Motley Fool/Upsplash&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="1j8j2"&gt;A lot of people don't give much thought to their savings accounts. They think most banks are pretty similar, and they don't expect big returns on their savings.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a53219cc-a522-4c9e-a485-29ce3ac231d8&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=a53219cc-a522-4c9e-a485-29ce3ac231d8&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="952g3"&gt;For a long time, they were right. But today, there are banks that pay their customers way more interest than the competition.&lt;/p&gt;&lt;p data-block-key="avgv1"&gt;In fact, the &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984" target="_blank"&gt;best high-yield savings accounts&lt;/a&gt; pay at least nine times the national average APY. Let's take a look at how much a high-yield savings account could earn if you deposited $10,000 and left it alone for a period of time.&lt;/p&gt;&lt;h2 data-block-key="93flv" id="average-savings-account-vs.-high-yield-savings-account"&gt;Average savings account vs. high-yield savings account&lt;/h2&gt;&lt;p data-block-key="1rgn2"&gt;The average savings account APY is 0.41%, according to the FDIC. Meanwhile, the best high-yield savings accounts have APYs ranging from about 3.75% to 4.50%.&lt;/p&gt;&lt;p data-block-key="8u0h4"&gt;Let's see how much two savings accounts would grow over the years -- one paying the average rate and one paying 4.00%.&lt;/p&gt;&lt;div class="ta_table-wrap"&gt;&lt;table class="ta_table"&gt;&lt;thead&gt;&lt;tr&gt;&lt;th&gt;Time&lt;/th&gt;&lt;th&gt;Balance (0.41% APY)&lt;/th&gt;&lt;th&gt;Balance (4.00% APY)&lt;/th&gt;&lt;/tr&gt;&lt;/thead&gt;&lt;tbody&gt;&lt;tr&gt;&lt;td&gt;Starting balance&lt;/td&gt;&lt;td&gt;$10,000&lt;/td&gt;&lt;td&gt;$10,000&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;1 year&lt;/td&gt;&lt;td&gt;$10,041&lt;/td&gt;&lt;td&gt;$10,400&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;5 years&lt;/td&gt;&lt;td&gt;$10,207&lt;/td&gt;&lt;td&gt;$12,167&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;10 years&lt;/td&gt;&lt;td&gt;$10,418&lt;/td&gt;&lt;td&gt;$14,802&lt;/td&gt;&lt;/tr&gt;&lt;tr&gt;&lt;td&gt;20 years&lt;/td&gt;&lt;td&gt;$10,853&lt;/td&gt;&lt;td&gt;$21,911&lt;/td&gt;&lt;/tr&gt;&lt;/tbody&gt;&lt;/table&gt;&lt;/div&gt;&lt;div class="caption pt--0 c--sec-drkr"&gt;Data source: Author's calculations.&lt;/div&gt;&lt;p data-block-key="4v3lx"&gt;After 20 years, the high-yield savings account would have earned nearly $12,000, more than &lt;i&gt;doubling&lt;/i&gt; the initial balance.&lt;/p&gt;&lt;p data-block-key="2m3vf"&gt;Granted, we're assuming that interest rates stay the same -- and that's all but guaranteed &lt;i&gt;not&lt;/i&gt; to happen. However, if your savings are earning a low APY, then you could be robbing yourself of thousands of dollars in interest.&lt;/p&gt;&lt;p data-block-key="2ort0"&gt;&lt;i&gt;Want to earn over nine times the national average APY?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts and open a new account today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="i451w" id="what's-the-catch"&gt;What's the catch?&lt;/h2&gt;&lt;p data-block-key="b8mn2"&gt;So why is there such a huge difference between the APYs different banks offer? Surely the banks paying low APYs must make up for it in other ways, right?&lt;/p&gt;&lt;p data-block-key="ar2f1"&gt;Not really.&lt;/p&gt;&lt;p data-block-key="4joqe"&gt;The biggest difference is that most high-yield savings accounts are offered by online-only banks -- banks that don't have any physical branches. So if you want a high APY, then you'll probably have to forgo the option of strolling into a bank and speaking with a teller and conducting your bank business in person.&lt;/p&gt;&lt;p data-block-key="fg3a0"&gt;That's a small price to pay for the extra interest you can earn. On top of that, online-only banks tend to offer other perks like no overdraft fees, no maintenance fees, no account minimums, and more.&lt;/p&gt;&lt;p data-block-key="9cqbm"&gt;Further, the best banks have websites and mobile apps that make it easy to do pretty much everything you need. You can deposit checks by uploading photos of them. You can transfer money between accounts, send money to other people, make wire transfers, and more. When you need cash, you can use a debit card linked to a &lt;a href="https://www.fool.com/money/banks/checking-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984" target="_blank"&gt;checking account&lt;/a&gt; at the same bank.&lt;/p&gt;&lt;p data-block-key="346sa"&gt;In other words, very few people &lt;i&gt;need&lt;/i&gt; physical bank branches these days.&lt;/p&gt;&lt;h2 data-block-key="hpg0m" id="if-you're-earning-a-low-apy-make-the-change-asap"&gt;If you're earning a low APY, make the change ASAP&lt;/h2&gt;&lt;p data-block-key="1njqp"&gt;With competition more fierce than ever, banks have made it fast and easy to open new accounts. I recently opened a new high-yield savings account from our list of favorites, and within an hour I had:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="2a6kt"&gt;Opened a new account&lt;/li&gt;&lt;li data-block-key="3fu0o"&gt;Transferred money over from my old account&lt;/li&gt;&lt;li data-block-key="9ujo5"&gt;Changed my direct deposit at work&lt;/li&gt;&lt;li data-block-key="8ulbu"&gt;Changed my automatic bill payment settings&lt;/li&gt;&lt;li data-block-key="5e79s"&gt;Downloaded and signed into my new banking app&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="p6gd"&gt;And just like that, I was earning way more money than before.&lt;/p&gt;&lt;p data-block-key="30gli"&gt;There's no reason to settle for a low APY on your savings. If your bank is stingy, then start looking for a new bank account today. Your future self will thank you.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ba5c1377-b89c-41f6-908c-ba9816184145&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ba5c1377-b89c-41f6-908c-ba9816184145&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 27 Jan 2025 06:30:31 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/heres-how-much-money-you-can-make-with-10000-in-a-high-yield-savings-account/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=afa4b2d0-58ea-4fb0-81a2-24665177b984</guid><category domain="https://www.fool.com/guid">afa4b2d0-58ea-4fb0-81a2-24665177b984</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Ranked: The 3 Best Places to Put Your Money in 2025</title><link>https://www.fool.com/money/banks/articles/ranked-the-3-best-places-to-put-your-money-in-2025/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A smiling woman holding a piggy bank." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FWoman_holding_piggy_bank_MhgroVY.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="eeu0s"&gt;Spoiler alert: I'm not about to give you three red-hot stock tips.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=888d85bf-b2ab-4c7b-ba33-892fd67f0945&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=888d85bf-b2ab-4c7b-ba33-892fd67f0945&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="2g0m"&gt;But if I did, you'd be wise to ignore them. There are safer, more practical ways for everyday people to set themselves up for financial success.&lt;/p&gt;&lt;p data-block-key="fgbdt"&gt;Here are three of the best ways to put your money to work now.&lt;/p&gt;&lt;h2 data-block-key="v6n7q" id="1.-credit-card-debt-payoff"&gt;1. Credit card debt payoff&lt;/h2&gt;&lt;p data-block-key="6q581"&gt;Carrying a credit card balance is like being on a treadmill. As long as you have credit card debt, you'll never get ahead financially. The interest you pay will eat up your savings &lt;i&gt;and&lt;/i&gt; your investment returns.&lt;/p&gt;&lt;p data-block-key="7d2si"&gt;The average credit card interest rate is 21%, according to the Federal Reserve. That's double the average annual return of the stock market.&lt;/p&gt;&lt;p data-block-key="nqpq"&gt;If you have credit card debt, put your other financial goals on hold until it's completely paid off. Think of it as a guaranteed double-digit return on your investment.&lt;/p&gt;&lt;p data-block-key="6j8dg"&gt;A &lt;a href="https://www.fool.com/money/credit-cards/best-balance-transfer-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" target="_blank"&gt;balance transfer card&lt;/a&gt; is one of the best ways to pay off credit card debt fast. You'll likely pay a small fee to move your balance to a new card, but then you'll pay 0% interest on that debt for an introductory period of 12 months or more. Without new interest charges piling up, you'll have more breathing room to pay what you owe before the 0% intro period ends.&lt;/p&gt;&lt;p data-block-key="75v22"&gt;&lt;i&gt;Want to pay off credit card debt fast and save hundreds or thousands of dollars in interest?&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-zero-interest-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best credit cards with 0% intro APRs now to see if you qualify&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="k90ub" id="2.-a-high-yield-savings-account"&gt;2. A high-yield savings account&lt;/h2&gt;&lt;p data-block-key="bgg7t"&gt;Once you're free of credit card debt, priority No. 2 is building up a healthy emergency fund in a savings account -- and not just any savings account.&lt;/p&gt;&lt;p data-block-key="afj80"&gt;The average savings account pays an APY of 0.41%, according to the FDIC. But these days, there are &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" target="_blank"&gt;high-yield savings accounts&lt;/a&gt; that pay 3.75% or more -- that's over nine times the average.&lt;/p&gt;&lt;p data-block-key="2n6d4"&gt;If you don't yet have an emergency fund, then open a high-yield savings account and set up automatic deposits. Ideally, you save up at least three months' worth of expenses -- that's &lt;i&gt;everything&lt;/i&gt; you spend in a month times three. That way, you can get by for a while if you lose your job, or you can cover a big, unexpected expense without charging it on a credit card.&lt;/p&gt;&lt;p data-block-key="dkvlq"&gt;And if you already have an emergency fund, well done! But make sure you're earning a competitive APY.&lt;/p&gt;&lt;p data-block-key="b5fv"&gt;Say you have $10,000 in a savings account that pays 0.50%. Leave it there, and in five years you will have earned about $250 in interest. If you instead moved it to an account paying an APY of 4.00%, you'd earn about $2,200.&lt;/p&gt;&lt;p data-block-key="ee0jo"&gt;&lt;i&gt;Want to earn over nine times the average savings rate?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best high-yield savings accounts to open an account and start saving smarter.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="69729" id="3.-an-sandp-500-index-fund"&gt;3. An S&amp;P 500 index fund&lt;/h2&gt;&lt;p data-block-key="a32r5"&gt;Once you've laid a solid financial foundation by paying off credit card debt and setting aside some emergency savings, it's time to invest for your future.&lt;/p&gt;&lt;p data-block-key="a6rjo"&gt;The stock market offers everyday people one of the best ways to build wealth for big, long-term goals like retirement. But picking individual stocks is both difficult and risky. Even professional stock-pickers often earn lower returns than the stock market as a whole.&lt;/p&gt;&lt;p data-block-key="3ll2q"&gt;Thankfully, S&amp;P 500 index funds allow you to invest in most of the U.S. stock market all at once. The S&amp;P 500 -- a group of 500 of the biggest companies in the United States -- has returned 10% per year on average since 1957. So buying an S&amp;P 500 index fund means you instantly have a diversified portfolio of high-performing companies.&lt;/p&gt;&lt;p data-block-key="7nitr"&gt;To purchase S&amp;P 500 index funds, all you need to do is open a &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" target="_blank"&gt;brokerage account&lt;/a&gt;, add some funds from a bank account, and start shopping. Specifically, look for an &lt;a href="https://www.fool.com/investing/how-to-invest/etfs/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" target="_blank"&gt;exchange-traded fund (ETF)&lt;/a&gt; with an expense ratio (basically a service fee) of no more than 0.05%.&lt;/p&gt;&lt;h2 data-block-key="eyw9k" id="chasing-high-returns-is-a-good-way-to-lose-money"&gt;Chasing high returns is a good way to lose money&lt;/h2&gt;&lt;p data-block-key="2cq4k"&gt;Everybody wants to make money as fast as possible. That's why there's no end of get-rich-quick advice out there, like dicey stock and crypto tips.&lt;/p&gt;&lt;p data-block-key="r98m"&gt;To be clear, there's nothing wrong with picking individual stocks in order to boost your returns -- &lt;i&gt;after&lt;/i&gt; you're on sound financial footing, have some money you can afford to lose, and have done plenty of research on potential investments. Until then, you're better off keeping things simple.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c8aa9433-59ca-42b2-89be-8af7e8bd7267&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=c8aa9433-59ca-42b2-89be-8af7e8bd7267&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 27 Jan 2025 06:00:39 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/ranked-the-3-best-places-to-put-your-money-in-2025/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=c8c9306c-00d6-4181-86cb-9fd300ca0778</guid><category domain="https://www.fool.com/guid">c8c9306c-00d6-4181-86cb-9fd300ca0778</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item><item><title>Cashing Out a CD at Maturity? Don't Make These 4 Common Mistakes</title><link>https://www.fool.com/money/banks/articles/cashing-out-a-cd-at-maturity-dont-make-these-4-common-mistakes/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Woman taking notes while using a laptop" src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FWoman_taking_notes_while_using_a_laptop_IpOrUz.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="mdg3d"&gt;When your certificate of deposit (CD) reaches maturity, what you choose to do next will seriously affect your finances. CDs are low-risk, interest-earning accounts that come with set terms, but your CD maturing isn't the end of the line -- it's an opportunity. Continue to earn a return on your investment by avoiding these four common mistakes.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d6bef155-7580-41b7-aa2a-2a2ea0ecf7fd&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=d6bef155-7580-41b7-aa2a-2a2ea0ecf7fd&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;h2 data-block-key="zslyf" id="1.-ignoring-the-grace-period"&gt;1. Ignoring the grace period&lt;/h2&gt;&lt;p data-block-key="74eng"&gt;Your CD almost certainly comes with a grace period of seven to 10 days after it matures. This grace period gives you a chance to decide what to do with your money. This can be easy to miss or forget.&lt;/p&gt;&lt;p data-block-key="35mqf"&gt;Before doing anything else, review the terms of your CD and take note of exactly how long your grace period is. Missing this window could lock your cash into a new CD that might have an interest rate well below competitors.&lt;/p&gt;&lt;h2 data-block-key="d69j8" id="2.-rolling-over-without-reviewing-your-options"&gt;2. Rolling over without reviewing your options&lt;/h2&gt;&lt;p data-block-key="c4dto"&gt;If you don't otherwise specify, many banks automatically roll your funds from the expired CD into a new CD once your grace period ends.&lt;/p&gt;&lt;p data-block-key="d9j8p"&gt;While this may seem convenient, especially if you want to keep your cash in a CD, when you do an automatic rollover, your bank doesn't give you any choice of which CD your money will be put into. That means the interest rate you get can be well below today's best CD annual percentage yields (APYs) of 4.00% and higher.&lt;/p&gt;&lt;p data-block-key="9oskp"&gt;&lt;i&gt;Looking for a new CD to roll your cash into?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Check out our list of the best CD rates to continue earning a top APY on your money&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="wpgpa" id="3.-letting-your-money-sit-in-a-low-interest-savings-account"&gt;3. Letting your money sit in a low-interest savings account&lt;/h2&gt;&lt;p data-block-key="8t6mj"&gt;One of the benefits of a CD is earning a high interest rate on your money, while preventing you from spending that cash before reaching your savings goal. Transferring your funds to a standard savings account after your CD matures might seem easy, but it can be a big mistake.&lt;/p&gt;&lt;p data-block-key="bcf9l"&gt;The average 6-month CD interest rate is 1.64%, according to the FDIC. But the average savings account interest rate is only 0.41%. That makes the average CD rate three times higher than the average savings account. Instead, check out the best CD interest rates or the &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a" target="_blank"&gt;best high-yield savings accounts&lt;/a&gt;, which currently include accounts earning APYs of 4.00% or higher.&lt;/p&gt;&lt;h2 data-block-key="7le11" id="4.-not-using-funds-to-pay-down-debt"&gt;4. Not using funds to pay down debt&lt;/h2&gt;&lt;p data-block-key="5sp5c"&gt;While earning a return of 4% or more on your cash in a CD is a sweet deal, consistently paying credit card debt with a 25% annual percentage rate (APR) more than wipes out anything you earn. Having a savings goal is important, but it becomes a moot point when you're dealing with high-interest, revolving debt. Paying down credit card debt will increase your credit score, give you more financial freedom, and give you the best chance to land &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a" target="_blank"&gt;the top credit cards&lt;/a&gt;.&lt;/p&gt;&lt;p data-block-key="bb0v8"&gt;Once your CD matures, it's not just time to collect your earnings, but it's an opportunity to reassess your financial priorities. Make sure you're reviewing your savings goals, paying down as much high-interest debt as you can, and exploring the best high-yield savings accounts.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=8d889667-1c01-4fb4-87db-a2f21b2d86c7&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=8d889667-1c01-4fb4-87db-a2f21b2d86c7&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Mon, 27 Jan 2025 05:30:43 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/cashing-out-a-cd-at-maturity-dont-make-these-4-common-mistakes/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=f8e7cf95-f7fc-4bdb-bd51-35f97a34037a</guid><category domain="https://www.fool.com/guid">f8e7cf95-f7fc-4bdb-bd51-35f97a34037a</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Here's How Many Americans Are in the 'Perfect' Credit Club</title><link>https://www.fool.com/money/credit-cards/articles/heres-how-many-americans-are-in-the-perfect-credit-club/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="Financial advisor discusses credit scores with a client." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FGettyImages-1313467326_flG9Sjs.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="lt1te"&gt;Having an exceptional credit score is sort of like having a key to the city. It opens doors and provides opportunities otherwise not available to you. You get access to the &lt;a href="https://www.fool.com/money/credit-cards/best-rewards-credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2" target="_blank"&gt;best rewards credit cards&lt;/a&gt;, the lowest mortgage rates, and more.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=89ec966e-a547-445d-925e-50b2a09368c0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=89ec966e-a547-445d-925e-50b2a09368c0&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="ols2"&gt;But having a perfect 850 FICO® Score is far from necessary to live a healthy financial life. In fact, Experian says only 1.3% of Americans have a FICO® Score of 850, according to credit score research from Motley Fool Money.&lt;/p&gt;&lt;p data-block-key="4fh0h"&gt;The reason only around 1% of Americans have a perfect credit score is because achieving one is extremely difficult. You have to maintain a flawless payment history, keep an ideal credit utilization ratio, balance all the right types of debt, and not collect too many hard credit inquiries. The realities of life make that dance nearly impossible for most people.&lt;/p&gt;&lt;p data-block-key="bm397"&gt;&lt;i&gt;Boost your credit (and your bank account balance) with the right card in your wallet.&lt;/i&gt; &lt;a href="https://www.fool.com/money/credit-cards/best-sign-up-bonus-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Discover the best sign-up bonus credit card offers designed to fit your lifestyle&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="5ezea" id="do-you-need-a-perfect-credit-score"&gt;Do you need a perfect credit score?&lt;/h2&gt;&lt;p data-block-key="bqu6s"&gt;You always want to strive to maintain the highest credit score you can, but don't stress if you are less than perfect. FICO® Scores range from 300 to 850, with the breakdown as follows:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="27gef"&gt;300-579 (Poor)&lt;/li&gt;&lt;li data-block-key="5ancn"&gt;580-669 (Fair)&lt;/li&gt;&lt;li data-block-key="1geug"&gt;670-739 (Good)&lt;/li&gt;&lt;li data-block-key="73qus"&gt;740-799 (Very Good)&lt;/li&gt;&lt;li data-block-key="87j0p"&gt;800-850 (Exceptional)&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="e1uc4"&gt;While having a perfect credit score might &lt;i&gt;sound&lt;/i&gt; really cool, in reality, maintaining a score above 700 will make you eligible for some of the best credit cards and earn you the going national average annual percentage rates (APRs) of 21% to 28%. You may miss out on the most exclusive credit cards that are reserved for the highest spenders, but you'll still be in great shape.&lt;/p&gt;&lt;p data-block-key="fl2qh"&gt;On the other end, having Poor or Fair credit can really hurt you. You'll be ineligible for most credit cards and loans, and you'll face significantly higher interest rates for the products you're approved for. And while it may still be possible to get approved for a mortgage, these scores can make it more difficult or even prevent you from getting a mortgage or being approved for an apartment.&lt;/p&gt;&lt;h2 data-block-key="d2y3c" id="tips-to-raise-your-credit-score"&gt;Tips to raise your credit score&lt;/h2&gt;&lt;p data-block-key="292gs"&gt;The following tips will help to keep your credit score in optimal shape.&lt;/p&gt;&lt;h3 data-block-key="x67x8" id="pay-bills-on-time"&gt;Pay bills on time&lt;/h3&gt;&lt;p data-block-key="5u07j"&gt;This is the most important factor in your FICO® Score, making up 35% of your total score. Setting up auto-payments for paying credit card and loan bills is one of the best ways to make sure you never forget a payment.&lt;/p&gt;&lt;h3 data-block-key="qdd48" id="reduce-credit-utilization"&gt;Reduce credit utilization&lt;/h3&gt;&lt;p data-block-key="54mv8"&gt;How much of your available credit you use is the second-most important factor in determining your FICO® Score. Your credit utilization score is your total outstanding balances divided by your total credit limit. Keeping that number below 30% is essential; strive for keeping it below 10% if you want to reach an 850 score.&lt;/p&gt;&lt;h3 data-block-key="ab8c8" id="maintain-old-accounts"&gt;Maintain old accounts&lt;/h3&gt;&lt;p data-block-key="fchi6"&gt;The length of your credit history also plays into your FICO® Score, as it proves you can handle having access to credit. This is why it's important to keep open credit cards you're no longer using -- especially if they have &lt;a href="https://www.fool.com/money/credit-cards/best-no-annual-fee-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2" target="_blank"&gt;no annual fee&lt;/a&gt;.&lt;/p&gt;&lt;h2 data-block-key="rnrmq" id="will-opening-a-new-credit-card-help-your-fico(r)-score"&gt;Will opening a new credit card help your FICO® Score?&lt;/h2&gt;&lt;p data-block-key="1gdad"&gt;If it's been a while since you opened your last credit card, a new one could definitely help your score. The hard inquiry on your credit report will ding your score a handful of points, but increasing your available credit and making on-time payments can easily outweigh that. According to Motley Fool Money's research, people with a perfect 850 FICO® Score had two more cards in their wallet than the average American -- 5.9 total cards vs. 3.9. Check out our list of &lt;a href="https://www.fool.com/money/credit-cards/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2" target="_blank"&gt;best credit cards&lt;/a&gt; to find one that's a good fit for you.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ef51b945-824c-4151-9dc2-adaee19eb4bf&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=ef51b945-824c-4151-9dc2-adaee19eb4bf&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Sun, 26 Jan 2025 05:30:26 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/credit-cards/articles/heres-how-many-americans-are-in-the-perfect-credit-club/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=0648a02c-0ba4-47a8-816c-b48c9348dad2</guid><category domain="https://www.fool.com/guid">0648a02c-0ba4-47a8-816c-b48c9348dad2</category><category domain="https://www.fool.com/topic">credit-cards</category><author>newsfeedback@fool.com (Jake Fitzgerald)</author></item><item><title>Why I'm Not Opening Any CDs in 2025 -- Even With Rates Over 4%</title><link>https://www.fool.com/money/banks/articles/why-im-not-opening-any-cds-in-2025-even-with-rates-over-4/?source=mfmfeed&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91</link><content:encoded>&lt;br/&gt; &lt;div class="image"&gt;&lt;img alt="A young woman sitting on the floor with a calculator, laptop, and notebook." src="https://g.foolcdn.com/image/?url=https%3A%2F%2Fm.foolcdn.com%2Fmedia%2Faffiliates%2Fimages%2FYoung_woman_calculator_laptop_ynzLryQ.width-793.jpg%3Fwidth%3D793&amp;w=700"/&gt;&lt;p class="caption"&gt;Image source: Getty Images&lt;/p&gt;&lt;/div&gt; &lt;p data-block-key="r5p5t"&gt;Right now, there are &lt;a href="https://www.fool.com/money/banks/cds/best-cd-rates/best-12-month-cd-rates/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" target="_blank"&gt;1-year certificates of deposit&lt;/a&gt; (CDs) that pay rates of 4.00% or more. If you open a short-term CD like a 3-month or a 6-month CD, you can get an annual percentage yield (APY) of about 4.60%.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=39a2462f-ef2b-437d-bfa8-d5aee3af486f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=39a2462f-ef2b-437d-bfa8-d5aee3af486f&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p data-block-key="36lb2"&gt;Why would anybody turn down a guaranteed return of over 4% per year? For me, there are two big reasons why I don't bother with CDs -- and you probably shouldn't, either.&lt;/p&gt;&lt;h2 data-block-key="omy9l" id="my-long-term-savings-are-invested-in-stocks-through-my-401(k)"&gt;My long-term savings are invested in stocks through my 401(k)&lt;/h2&gt;&lt;p data-block-key="dglb5"&gt;For the past 12 years, I've been putting as much money as I can into my 401(k). That money is mostly invested in big U.S. companies, with smaller amounts going into real estate and international stocks.&lt;/p&gt;&lt;p data-block-key="54l0d"&gt;Over the past four years -- the farthest I can look back in my 401(k)'s history -- my retirement savings have earned an average of 8.8% per year. That's about twice the amount I could earn from today's best CDs. I'm currently on track to retire with &lt;i&gt;more&lt;/i&gt; income than I earn now -- or to retire early if I want to.&lt;/p&gt;&lt;p data-block-key="k983"&gt;These kinds of returns aren't possible with CDs, and most Americans &lt;i&gt;need&lt;/i&gt; high returns to save enough for a comfortable retirement. If you don't invest aggressively now, you may have to make big sacrifices when you retire.&lt;/p&gt;&lt;p data-block-key="fk0fl"&gt;If you have a 401(k), then it's probably the best place for your disposable income. Make sure you get the full employer match (if offered) and choose investments that will earn enough to achieve your goals. And, to repeat the best advice my dad ever gave me, "save until it hurts."&lt;/p&gt;&lt;h3 data-block-key="hxx8s" id="no-401(k)-here's-the-next-best-thing"&gt;No 401(k)? Here's the next best thing&lt;/h3&gt;&lt;p data-block-key="n41j"&gt;Not everyone has access to a 401(k) or similar retirement plan. Fortunately, you can invest up to $7,000 a year ($8,000 if you're 50 or older) in an &lt;a href="https://www.fool.com/money/buying-stocks/best-ira-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" target="_blank"&gt;IRA&lt;/a&gt;. You won't get an employer match, but you'll enjoy the same tax breaks that a 401(k) offers.&lt;/p&gt;&lt;p data-block-key="1nuog"&gt;If you max out your IRA, then the rest of your retirement savings can go into a regular brokerage account. You'll pay more in taxes on those investments, but it's a small price compared to the returns you can achieve.&lt;/p&gt;&lt;p data-block-key="7ijh8"&gt;Don't know what to invest in? You could start with an S&amp;P 500 &lt;a href="https://www.fool.com/investing/how-to-invest/index-funds/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" target="_blank"&gt;index fund&lt;/a&gt; and invest in 500 of America's biggest companies all at once. The S&amp;P 500 has earned an average of 10% per year since 1957. At that rate, someone who earned the median income of $80,000 per year and invested 15% of every paycheck would have over $1 million in 25 years.&lt;/p&gt;&lt;p data-block-key="9g5gn"&gt;&lt;i&gt;If you want to get in on the stock market's returns, then&lt;/i&gt; &lt;a href="https://www.fool.com/money/buying-stocks/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" target="_blank"&gt;&lt;b&gt;&lt;i&gt;check out our list of the best brokerage accounts and start investing today&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;b&gt;&lt;i&gt;.&lt;/i&gt;&lt;/b&gt;&lt;/p&gt;&lt;h2 data-block-key="po1g0" id="my-short-term-savings-go-into-a-high-yield-savings-account"&gt;My short-term savings go into a high-yield savings account&lt;/h2&gt;&lt;p data-block-key="rvp9"&gt;Like CDs, the &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" target="_blank"&gt;best high-yield savings accounts&lt;/a&gt; currently offer an APY of around 4.00% or more.&lt;/p&gt;&lt;p data-block-key="2uqia"&gt;On top of the high APY, savings accounts offer benefits that CDs don't:&lt;/p&gt;&lt;ul&gt;&lt;li data-block-key="cnc57"&gt;You can withdraw money at any time (most CDs charge a penalty if you cash them out before the term ends).&lt;/li&gt;&lt;li data-block-key="b6svi"&gt;You can easily (or even automatically) make deposits whenever you want.&lt;/li&gt;&lt;li data-block-key="865p3"&gt;You can easily transfer money to other accounts, like a checking account or brokerage account.&lt;/li&gt;&lt;/ul&gt;&lt;p data-block-key="3mq0o"&gt;Savings accounts are simpler, more flexible, and more convenient than CDs. This is why I keep my emergency fund in a high-yield savings account, as well as some money I'm saving for short-term goals.&lt;/p&gt;&lt;p data-block-key="dg3dg"&gt;&lt;i&gt;Want to earn a return of 4% or more on your savings?&lt;/i&gt; &lt;a href="https://www.fool.com/money/banks/savings-accounts/best-savings-accounts/?utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" target="_blank"&gt;&lt;b&gt;&lt;i&gt;Click here to check out our list of the best high-yield savings accounts and start saving smarter today.&lt;/i&gt;&lt;/b&gt;&lt;/a&gt;&lt;/p&gt;&lt;h2 data-block-key="hjsyl" id="there's-no-room-for-cds-in-my-financial-plan"&gt;There's no room for CDs in my financial plan&lt;/h2&gt;&lt;p data-block-key="6vb1f"&gt;My savings account only contains as much money as I need to cover an emergency or to pay for a large purchase I'm making soon. The rest of my savings are invested in stocks so I'll be able to retire in style some day.&lt;/p&gt;&lt;p data-block-key="911v3"&gt;I might be able to squeeze out a &lt;i&gt;little&lt;/i&gt; more interest if I moved some money out of savings and into CDs. Maybe I'd earn an extra $10 or $20 per year. But for that amount, I'd rather skip the hassle and just keep making automatic deposits to my savings account.&lt;/p&gt;&lt;h2&gt;Alert: highest cash back card we've seen now has 0% intro APR into 2026&lt;/h2&gt; &lt;p&gt;&lt;span style="font-weight: 400;"&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=145d16cb-1e4d-4c96-bfad-18eb688fd59c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" rel="nofollow" target="_blank"&gt;This credit card&lt;/a&gt; is not just good – it's so exceptional that our experts use it personally. It&lt;/span&gt;&lt;span style="font-weight: 400;"&gt; features a 0% intro APR for 15 months, a cash back rate of up to 5%, and all somehow for no annual fee! &lt;/span&gt;&lt;/p&gt; &lt;p&gt;&lt;strong&gt;&lt;a href="https://api.fool.com/infotron/infotrack/click?apikey=35527423-a535-4519-a07f-20014582e03e&amp;impression=145d16cb-1e4d-4c96-bfad-18eb688fd59c&amp;url=https%3A%2F%2Fwww.fool.com%2Fmoney%2Fcredit-cards%2Flanding%2Fdiscover-it-cash-back-review-v2-csr%2F%3Fftm_cam%3Dascent-pages%26ftm_veh%3Darticle_pitch_feed_partners%26ftm_pit%3D13982%26source%3D%26aid%3D&amp;utm_source=mfmfeed&amp;utm_medium=feed&amp;utm_campaign=mfmfeed&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91" rel="nofollow" target="_blank"&gt;&lt;span style="font-weight: 400;"&gt;Click here to read our full review&lt;/span&gt;&lt;/a&gt;&lt;span style="font-weight: 400;"&gt; for free and apply in just 2 minutes. &lt;/span&gt;&lt;/strong&gt;&lt;/p&gt;&lt;p&gt;&lt;i&gt;We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a &lt;a href="https://www.fool.com/legal/fool-disclosure-policy/"&gt;disclosure policy&lt;/a&gt;.&lt;/i&gt;&lt;/p&gt;</content:encoded><pubDate>Fri, 24 Jan 2025 05:30:20 -0500</pubDate><guid isPermaLink="true">https://www.fool.com/money/banks/articles/why-im-not-opening-any-cds-in-2025-even-with-rates-over-4/?utm_source=source&amp;utm_medium=feed&amp;utm_campaign=article&amp;referring_guid=14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91</guid><category domain="https://www.fool.com/guid">14e2ecc9-30cc-4d69-9e3a-14e76e9d3b91</category><category domain="https://www.fool.com/topic">banks</category><author>newsfeedback@fool.com (James McClenathen)</author></item></channel></rss>