The Half-Hour Car Rental Hack

Posted on November 20, 2023 // 5 Comments

When you make a reservation at nearly every car rental website, you simply agree to a price and make a non-binding reservation without giving any payment information. You can cancel at any time, without penalty. I’m really not sure why this is still standard industry practice, but I guess it works for them.

AutoSlash takes advantage of this quirk by helping you repeatedly rebook whenever it manages to help you find a lower price. I just came across a “tip” from their blog where they discovered that you can get differing prices by changing your pick-up time by only a half-hour:

Instead of automatically booking your pickup time to be on the hour — say, 9 a.m. or 1 p.m. or 6 p.m. — ask for a second quote for the half hour before or after your original time — 9:30 a.m. or 1:30 p.m. or 6:30 p.m.

Skeptical that this car rental hack can work? Let’s look at a few examples. We ran a quote for a weeklong minivan rental at Salt Lake City International Airport (SLC), picking up and returning at noon. In this particular case, Alamo and Payless tied for the cheapest of the major car rental brands, delivering a price of $525. Then ran the same quote request at the same airport, for the same car at the same time, but bumped back the pickup and return time to 12:30 p.m. Alamo’s price dropped to $470, while Payless and Enterprise came in at $525. The upshot: If you booked with Alamo, you’d save 10% without breaking a sweat.

For a recent quote at San Francisco International Airport (SFO), we saw a whopping $143 difference in National’s price simply by shifting the pickup and return time by 30 minutes.

You can also potentially save money by changing the drop-off time by a half-hour or hour:

I tried this “half hour hack” with a few of my existing reservations, and strangely it did take off a few dollars per day on some of them! Not a huge savings, but definitely good to know. Honestly, just using Autoslash at all will probably save you much more money by itself. I’ve used Autoslash as “price drop insurance” for several years now; my old Autoslash review is still pretty much accurate.

Filed Under: Deals & Offers, Frugal Living //

Best Interest Rates on Cash – November 2023

Posted on November 16, 2023 // 6 Comments

Here’s my monthly roundup of the best interest rates on cash as of November 2023, roughly sorted from shortest to longest maturities. There are often lesser-known opportunities available to individual investors. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you could earn from switching. Rates listed are available to everyone nationwide. Rates checked as of 11/16/2023.

TL;DR: Mostly minor movements, both up and down this month. 6% APY now (barely) available with 12-month CD and rewards checking accounts. More 5%+ savings accounts. Compare against Treasury bills and bonds at every maturity, taking into account state tax exemption.

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

  • 5.30% APY ($1 minimum). Raisin lets you switch between different FDIC-insured banks and NCUA-insured credit unions easily without opening a new account every time, and their liquid savings rates currently top out at 5.30% APY amongst multiple banks. See my Raisin review for details. Raisin does not charge depositors a fee for the service.
  • 5.36% APY (before fees). MaxMyInterest is another service that allows you to access and switch between different FDIC-insured banks. You can view their current banks and APYs here. As of 11/16/23, the highest rate is from Customers Bank at 5.36% APY. (At the moment, Customers is also the top bank at SaveBetter at 5.30% APY.) However, note that they charge a membership fee of 0.04% per quarter, or 0.16% per year (subject to $20 minimum per quarter, or $80 per year). That means if you have a $10,000 balance, then $80 a year = 0.80% per year. This service is meant for those with larger balances. You are allowed to cancel the service and keep the bank accounts, but then you may lose their specially-negotiated rates and cannot switch between banks anymore.

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

  • The top rate at the moment is at Elevault (app only) at 5.65% APY (5.50% rate) on up to $50,000, but as of 11/20/23 they are changing their rate to (Prime minus 3.5%) which would be 5% currently. PopularDirect at 5.40% APY. CIT Platinum Savings at 5.05% APY with $5,000+ balance.
  • SoFi Bank is now up to 4.60% APY + up to $275 new account bonus with direct deposit. You must maintain a direct deposit of any amount each month for the higher APY. SoFi has their own bank charter now so no longer a fintech by my definition. See details at $25 + $250 SoFi Money new account and deposit bonus.
  • There are several other established high-yield savings accounts at 4.25%+ APY that aren’t the absolute top rate, but historically do keep it relatively competitive for those that don’t want to keep switching banks.

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

  • No Penalty CDs offer a fixed interest rate that can never go down, but you can still take out your money (once) without any fees if you want to use it elsewhere. Raisin has a 5-month No Penalty CD at 5.36% APY with $1 minimum deposit. CIT Bank has a 11-month No Penalty CD at 4.90% APY with a $1,000 minimum deposit. Ally Bank has a 11-month No Penalty CD at 4.55% APY for all balance tiers. Marcus has a 13-month No Penalty CD at 4.60% APY with a $500 minimum deposit. Consider opening multiple CDs in smaller increments for more flexibility.
  • Bayer Heritage Federal Credit Union has a Santa Special 12-month CD at 6.18% APY. Minimum opening deposit is $1500. Early withdrawal penalty is 90 days interest. Anyone can join this credit union via partner organization.

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

  • Vanguard Federal Money Market Fund is the default sweep option for Vanguard brokerage accounts, which has an SEC yield of 5.29% (works out to a compound yield of 5.42%, which is better for comparing against APY). Odds are this is much higher than your own broker’s default cash sweep interest rate.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 5.61% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 5.75% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

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

  • You can build your own T-Bill ladder at TreasuryDirect.gov or via a brokerage account with a bond desk like Vanguard and Fidelity. Here are the current Treasury Bill rates. As of 11/15/23, a new 4-week T-Bill had the equivalent of 5.39% annualized interest and a 52-week T-Bill had the equivalent of 5.29% annualized interest.
  • The iShares 0-3 Month Treasury Bond ETF (SGOV) has a 5.13% SEC yield and effective duration of 0.10 years. SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a 5.27% SEC yield and effective duration of 0.08 years.

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

  • “I Bonds” bought between November 2023 and April 2024 will earn a 5.27% rate for the first six months. The rate of the subsequent 6-month period will be based on inflation again. More on Savings Bonds here.
  • In mid-April 2023, the CPI will be announced and you will have a short period where you will have a very close estimate of the rate for the next 12 months. I will have another post up at that time.

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

  • Credit Union of New Jersey pays 6.00% APY on up to $25,000 if you make 15 debit card purchases, opt into online statements, and make at least 1 direct deposit, online bill payment, or automatic payment (ACH) per statement cycle. Anyone can join this credit union via $5 membership fee to join partner organization.
  • Pelican State Credit Union pays 6.05% APY on up to $10,000 if you make 15 debit card purchases, opt into online statements, log into your account at least once, and make at least 1 direct deposit, online bill payment, or automatic payment (ACH) per statement cycle. Anyone can join this credit union via partner organization membership.
  • Orion Federal Credit Union pays 6.00% APY on up to $10,000 if you make electronic deposits of $500+ each month (ACH transfers count) and spend $500+ on your Orion debit or credit card each month. Anyone can join this credit union via $10 membership fee to partner organization membership.
  • Genisys Credit Union pays 5.25% APY on up to $7,500 if you make 10 debit card purchases of $5+ each, and opt into receive only online statements. Anyone can join this credit union via $5 membership fee to join partner organization.
  • The Bank of Denver pays 5.00% APY on up to $25,000 if you make 12 debit card purchases of $5+ each, receive only online statements, and make at least 1 ACH credit or debit transaction per statement cycle. Thanks to reader Bill for the updated info.
  • All America/Redneck Bank pays 5.30% APY on up to $15,000 if you make 10 debit card purchases each monthly cycle with online statements.
  • Find a locally-restricted rewards checking account at DepositAccounts.

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

  • Farmer’s Insurance FCU has their 3, 6, 9, 12, 18, 24, 36, 48, or 60 month CDs ALL at 5.00% APY for a limited-time. $1,000 minimum. The early withdrawal penalty for all terms longer than a year is 180 days of dividends OR half of the remaining term’s daily dividends, whichever is greater. Anyone can join this credit union via partner organization.
  • BMO Alto has a 5-year CD at 5.25% APY. 4-year at 5.20% APY. 3-year at 5.10% APY. 2-year at 5.00% APY. 1-year at 5.65% APY. No minimum. The early withdrawal penalty (EWP) for CD maturities of 1 year or more is 180 days of interest. For CD maturities of 11 months or less, the EWP is 90 days of interest. Note that they reserve the right to prohibit early withdrawals entirely. Online-only subsidiary of BMO Bank.
  • You can buy certificates of deposit via the bond desks of Vanguard and Fidelity. You may need an account to see the rates. These “brokered CDs” offer FDIC insurance and easy laddering, but they don’t come with predictable early withdrawal penalties. Right now, I see a 5-year non-callable CD at 4.75% APY (callable: no, call protection: yes). Be warned that now both Vanguard and Fidelity will list higher rates from callable CDs, which importantly means they can call back your CD if rates drop later.

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

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. You might find something that pays more than your other brokerage cash and Treasury options. Right now, I see a 10-year CDs at [n/a] (callable: no, call protection: yes) vs. 4.47% for a 10-year Treasury. Watch out for higher rates from callable CDs where they can call your CD back if interest rates drop.

    • All rates were checked as of 1/16/2023.

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

Primis Bank Novus Checking: 6% APY Guaranteed for 6 Months (4.00% APY Standard)

Posted on November 15, 2023 // 2 Comments

Primis Bank just rolled out a new Novus Checking account that includes an introductory period of 6.00% APY guaranteed for 6 months on up to $50,000 with qualifying direct deposits. Hat tip to reader Bill P. Highlights:

  • 6.00% APY guaranteed on up to $50,000 for 6 months, when you set up and use direct deposit within 60 days of opening your account and maintain it through the 6-month period.
  • Otherwise, earn 4.00% APY (with no direct deposit or after the initial 6 months). Note this is a variable rate.
  • No minimum balance requirement.
  • Open with just $1.
  • Must open online.
  • Free starter pack of 40 checks (upon request).
  • Free cashier’s checks.
  • Free ATM rebates.

Napkin math. If you consider the 6% APY to be a 1% APY improvement over 5% APY, on a $50,000 balance that works out to $250 extra interest over 6 months. Of course, interest rates could change in the future (up or down). The fact that this is a checking account rather than a savings account makes it easier to maximize your interest earned while still performing everyday transactions.

You may recall that Primis Bank was mentioned previously for their 5.07% APY Premium checking and 5.07% APY Primis savings accounts (rate as of 11/15/23). These still exist. The problem is, I’m not really sure what the difference between the “Novus” and the “Premium” accounts are… could it be that the Premium may be phased out soon in favor of the Novus with lower base interest rate? Perhaps it is a good idea to open up those accounts now as well to take advantage if they grandfather in existing customers?

Premium Checking details:

  • 5.07% APY as of 11/15/23.
  • No minimum balance requirement.
  • Open with just $1.
  • Must open online.
  • Free cashier’s checks and starter pack of checks.
  • Free ATM rebates.

Primis Savings details:

  • 5.07% APY as of 11/15/23.
  • No minimum balance requirement.
  • Open with just $1.

Reader Adam says to make sure to download the “Primis Digital Mobile App” and not the other one which applies to their physical branch accounts (their two systems are currently separate). Also, you may have issues syncing your existing bank (or Personal Capital) with Primis because they try to log into the physical branch account interface and not their online-only accounts.

Filed Under: Banking, Deals & Offers //

Capital One Spark Cash Select Business Card Review: $500 Intro Bonus w/ No Annual Fee

Posted on November 14, 2023 // 4 Comments

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The card_name is a business credit card with simple, straightforward cash back along with no annual fee. This no-annual fee card is currently offering a strong $500 cash bonus for new cardholders after qualifying purchases, while also requiring an excellent credit score. Here are the highlights:

  • $500 Cash Back once you spend $4,500 on purchases within the first 3 months from account opening.
  • Earn unlimited 1.5% cash back for your business on every purchase, everywhere – with no limits or category restrictions.
  • 5% Cash Back on hotels and rental cars booked through Capital One’s travel booking site.
  • Rewards won’t expire for the life of the account.
  • Redeem your cash back rewards for any amount.
  • No annual fee.

This card does not have all of the bells and whistles like top-level rewards, transferrable airline miles, or airport lounge access. For that, look into the Capital One Venture X Business Card and its higher annual fee.

Many people aren’t aware of the fact that they can apply for business credit cards, even if they are not a corporation or LLC. The business type is called a sole proprietorship, and these days many people are full-time or part-time consultants, freelancers, eBay/Amazon/Etsy sellers, Uber/Lyft drivers, or other one-person business owners. This is the simplest business entity, but it is fully legit and recognized by the IRS. On a business credit card application, you should use your own legal name as the business name, and your Social Security Number as the Tax ID.

Bottom line. The card_name is a business credit card with simple, straightforward cash back along with no annual fee. This version requires excellent credit, but is also currently offering a one-time $500 cash bonus for new cardholders after qualifying purchases.

Due to the $500+ first-year value, I will be adding this to my Top 10 Best Small Business Card Bonus Offers.

Filed Under: Credit Cards, Deals & Offers, General //

Free Kindle eBook: From Zero to Millionaire

Posted on November 14, 2023 // Leave a Comment

Here’s a free Kindle eBook version of a personal finance and investing book that was published just last month: From Zero to Millionaire: A simple, effective and stress-free way to invest in the stock market by Nicolas Bérubé. (That is an Amazon affiliate link, so you’ll have to visit the actual website to see it.)

“Investing is a simple activity, which an entire industry strives to make complicated to justify its existence.” – Nicolas Bérubé.

The book appears to be targeted at the Canadian market primarily, or at least the author is a Canadian journalist. Either way, the underlying message appears solid but I guess it needs a little bit of marketing oomph in the United States. I haven’t finished it, but the blurb looked interesting as it promised some interesting anecdotes at the minimum. Download it now for free, read it later.

He also uses little-known examples, such as the forgotten theft of the Mona Lisa, Isaac Newton’s stock market disaster, and the mistake made by one of the world’s greatest investors, to make learning about investing a compelling journey through history, psychology, and finance.

Finally, using the latest research, he identifies proven and accessible ways to invest, and offers concrete advice on how to get started or take control of your investments today.

Filed Under: Book Reviews, Deals & Offers //

BMO Alto Online Certificates of Deposit: 5-year CD at 5.25% APY

Posted on November 8, 2023 // 9 Comments

BMO Alto is the online-only division of BMO Bank N.A. (member FDIC). You can only access BMO Alto products through its unique website, not any existing BMO login. As of 11/8/23, they are offering very competitive rates for CDs (certificates of deposit) which would be very suitable for a ladder:

  • 5-year at 5.25% APY
  • 4-year at 5.20% APY
  • 3-year at 5.10% APY
  • 2-year at 5.00% APY
  • 1-year at 5.65% APY
  • 6-month at 5.50% APY
  • Liquid savings at 5.10% APY (variable).

Additional details:

  • No minimum to open.
  • No monthly maintenance fees.
  • Online statements only.
  • Unfortunately, they do not offer IRA CDs at this time.
  • If your savings account has a zero balance for 90 consecutive days it will be automatically closed. You must also fund your CD within 10 calendar days or it will be automatically closed.

Early withdrawals. The early withdrawal penalty (EWP) for CD maturities of 1 year or more is 180 days of interest. For CD maturities of 11 months or less, the EWP is 90 days of interest. Note that they reserve the right to prohibit early withdrawals entirely:

We reserve the right to permit withdrawals of principal only upon maturity. If we permit you to make an early withdrawal of principal before maturity, you will pay an early withdrawal penalty. The penalty is calculated using the interest rate applicable to the CD at the time of early withdrawal. If the amount of the penalty exceeds the amount of your accrued and unpaid interest, then a reduction of principal would be required in order to pay the penalty.

I maintain a 5-year ladder of CD and/or Treasury bonds with a rung that matures each year, so I don’t really worry about early withdrawals for liquidity, only as an option in case rates go much higher quickly.

You may be able to get similar or better tax-equivalent yields if you are subject to state/local income taxes with US Treasury bonds (4.51% at 5-year on 11/8/23), but if you don’t have such taxes, these BMO Alto rates are some of the best available. These BMO Alto rates are also higher than the best brokered CDs available at the moment.

If interest rates change between your CD opening date and the funding date, you will receive the higher APY. No minimum balance and $0 minimum opening deposit required. You have 10 days from account opening to fund your CD. Early withdrawal penalties may apply. Funds may not be withdrawn for 15 days after initial funding.

Filed Under: Banking, Deals & Offers //

CIBC Bank Agility Online Savings $250/$500 Deposit Bonus (New & Existing)

Posted on November 8, 2023 // 9 Comments

CIBC Bank USA has brought back a $250/$500 deposit bonus for customers that are adding new money to their Agility online savings account (you can be a new or existing customer). The bonus is on top of the interest rate, currently a competitive 5.01% APY (as of 11/7/23). $1,000 minimum to open. No monthly maintenance fees. CIBC stands for the Canadian Imperial Bank of Commerce. Hat tip to DepositAccounts.

I think it’s best to simply quote their terms and conditions first:

In order to qualify for an account bonus, you must increase the current balance in your CIBC Bank USA (“CIBC”) Agility Savings account by depositing funds of $25,000 or more of New Money (defined below) from an external bank between 12:00 a.m. ET on November 1, 2023 and 11:59 p.m. ET on December 19, 2023 (the “Funding Period”). The New Money must remain in your account until 11:59 p.m. on March 18, 2024. This offer applies to both new and existing accounts. If you are funding by ACH transfer, keep in mind timeframes for applicable verification and for transfer origination which may take 1-3 business days before the funds are credited to your Agility Savings account. The funds must be credited during the Funding Period.

You must also enroll into online statements:

If you are not already enrolled in e-statements, you must enroll in Online Banking and change the Statements Delivery Method to “Online” during the Funding Period. You must continue online statement delivery through March 18, 2024.

The bonus amount is $250 for $25,000+ and $500 for $50,000+ in new money as follows:

The amount of your bonus will be determined as follows:

– $250 bonus – The New Money you deposited from an external bank during the Funding Period was between $25,000 and $49,999.99 (“Tier 1”), and you maintained at least $25,000 in New Money until 11:59 p.m. ET on March 18, 2024.
– $500 bonus – The New Money you deposited from an external bank during the Funding Period was $50,000 or more (“Tier 2”), and you maintained at least$50,000 in New Money deposited in the account until 11:59 p.m. ET on March 18, 2024.

Additional details:

If you fulfill the offer requirements outlined above, CIBC Bank USA will deposit the bonus into your CIBC Agility Savings account no later than May 17, 2024. In order to receive the bonus your account must be open and not overdrawn at the time of the bonus payout. Only one bonus allowed per primary account owner Tax ID.

New deposit bonus example. Here’s how it might work for a new customer:

  • Open a new CIBC Agility Savings Account AND also make your $25,000 or $50,000 deposit of new money (from outside CIBC) arrives safely before December 19, 2023.
  • Remember to sign up for online eStatements as soon as you open your account.
  • Earn $250 when you deposit at least $25,000 and keep the money in your account at least past March 18, 2024. (Roughly 3 months or 90 days minimum, probably a little more to be safe.)
  • Earn $500 when you deposit at least $50,000 and keep the money in your account at least past March 18, 2024. (Roughly 3 months or 90 days minimum, probably a little more to be safe.)
  • You may withdraw after 3/19 (although 5% APY isn’t awful), but keep the account open with a few dollars and with online statements active. You should receive the bonus payment no later than May 17, 2024 (another 2 months).

Effective APY. If you meet the tier values exactly, this works out to a 1% bonus on $25,000/$50,000 over a minimum 90 day hold time. This works out to 4% annualized, plus the 5.01% APY interest (variable), for a total effective interest of roughly 9% APY annualized for 3 months. This is a little optimistic as you will probably add a few days of holding time on either end. If you simply held it there for 4 months, that would still be an effective 8% APY for 4 months.

Filed Under: Banking, Deals & Offers //

Target RedCard 5% Off Purchases, $50 Off For New Applicants (New Reloadable Version)

Posted on October 31, 2023 // 11 Comments

(Update: New $50 limited-time offers for new RedCards, including new Reloadable version with no credit check. Offer expires 12/9/23.)

The Target RedCard offers 5% off all Target purchases both online and in-store (Target gift cards excluded, in-store Starbucks included) and free 2-day shipping on qualifying items at Target.com. You also get an additional 30 days for returns and exchanges. No annual fee.

There are now three versions of RedCard: Credit, Debit, and Reloadable. Debit and Reloadable have no credit check and I never carry a balance, so the credit card doesn’t interest me at all. There is a new limited offer for each that includes $50 savings on a $50+ Target purchase. The Debit and Reloadable version do not perform a hard credit check on the three major credit bureaus. There are a bunch of restrictions on big brands (see below), but I can easily spend $50 on food and other household goods. I plan on going for the new Reloadable version this time around.

Full fine print copied below. Usually I just make my pick-up order at Target and make sure the coupon works in the app before checking out. The Reloadable $50 bonus is much less finicky.

Save $50 on a future qualifying purchase over $50 when approved for credit or debit RedCard

RedCard Debit or Credit: Get a coupon for $50 off of one future qualifying purchase over $50 when you are approved for a debit or credit RedCard in-store or at Target.com between 10/29/23-12/9/23. The coupon will be mailed to the approved cardholders with their RedCard and will be valid through 1/8/24. Must upload coupon to Target App and be fully enrolled in Target Circle™ to redeem coupon. Excludes items sold by Target Plus™ Partners, alcohol, Apple products, Barbie camper and houses, Beats, Black History Month, Bose, Bratz Collector and Designer Dolls, Bullseye’s Playground, Cards Against Humanity, Casper, clinic & pharmacy, Cricut, dairy milk, Disney Princess Castle, Dockers, Do-a-Dot, Doona, DSLR cameras & lenses, Dynamic Coins, Dyson, Elf on the Shelf, Fisher Price Laugh n Learn, Fitbit, Funko Standard Pop, gift cards, GilletteLabs Heated Razor Starter Kit by Gillette – 3ct, Google, Hair Appliances, HALO Baby, Hasbro Games (Classic Monopoly, Connect Four, Jenga, Sorry, Trouble), Healthy Roots Dolls, HP Inc., ICU reading glasses, Infant Optics, JBL, Latino Heritage Month, LEGO, Levi’s Red Label, LG OLED and QNED TVs, Lights From Anywhere (Junior), limited-time designer partnerships, Lovevery, Marvin’s Magic Drawing Board and Pens, Mega Bloks, Meta Oculus and Portal, mobile contracts, Motrin baby, Nintendo hardware and Switch games, Polder, Philips Avent, Plan B, power shave, power dental, prepaid cards, Play-Doh Ice Cream Truck Playset, PlayStation – consoles, virtual reality and accessories, Pride, Revival, Samsung TVs, Shipt Membership, simplehuman, Sonos, Sony Electronics, Take Action, Target Optical, Tempur-Sealy, Trading Cards, Tylenol (and baby) pain relief, Ulta Beauty at Target Brands, Umbrellas, Unlocked phones, Vera Bradley handbags, Weber, What Do You Meme?, WonderFold.

Get a $50 credit when you open a RedCard Reloadable Account & spend $50 at Target.

RedCard Reloadable Account: Get a $50 credit when you open a RedCard Reloadable Account and spend $50 at Target. To receive a $50 statement credit for the RedCard Reloadable Account, you must successfully register online at redcardreloadable.com for a new account between 10/29/23-12/9/23, then activate the permanent card once received in the mail and spend $50 (net of reversals/returns) at Target (“$50 transaction”) within 45 days of registration. The statement credit will be posted to the account within 30 days of the $50 transaction. The $50 transaction must occur in one transaction at a Target location or at Target.co; if you get cash back at the register during the purchase, the transaction will not qualify for this promotion. Limit one (1) $50 credit per customer. Offer is subject to change or cancellation at any time.

We’ve become regular users of the Target app and their Drive-Up option. No markups, well-organized, dedicated parking area, and minimal waiting. The online stock available is mostly accurate, better than Walmart in our experience which has more frequent, often-imperfect substitutions. If only Costco had a similar service! (Sam’s Club does have a pickup option.)

Filed Under: Credit Cards, Deals & Offers //

Domain Money: 6% APY Savings Account (No Longer Available On Free Tier)

Posted on October 25, 2023 // 5 Comments

Update: As of 10/27/23, the 6% APY savings account is no longer showing as available on the free tier. You must be on the $79/month tier to get it now. I wonder if they will grandfather the existing users, otherwise that is a bad look for a supposedly reliable firm that you are trusting with financial advice… Definitely will avoid now.

Original post:

Let’s welcome Domain Money to the “small fintech with big ambitions” club. Their primary goal is to provide a suite of financial services including unlimited advice from CFPs (Certified Financial Planners) and income tax preparation, all for a flat $79 a month. However, some of their perks including model portfolios and a 6% APY savings account are available at no monthly fee as a sort of teaser:

6% APY is a nice number, and this is the first savings account I’ve seen reach it (other than some rewards checking accounts that require a bunch of debit card transactions, hat tip to Doctor of Credit), but it comes with some concerns. They are a relatively new startup that recently pivoted from crypto and stock trading. The terms stipulate that you can only initiate fund transfers from within the app, and it must be to/from a linked bank account that they approve. Cash and check deposits are not allowed. (They do not provide a routing number or account number.) It’s a savings account, so the interest rate can change at any time. 6% APY is high enough over the current funds rate that it essentially a “bonus” in that they are losing money, so taken altogether it is a big question as to how long the rate will last. Cash deposits are held with Georgia Banking Company, Member FDIC.

On the positive side, I did notice that the founder was previously Head of Product at Marcus by Goldman Sachs, and I liked the user interface over at Marcus. They must also have some good relationships with folks within the Apple App Store, as they have earned “App of the Day”, “Best Apps for Investing”, and “Essential Finance Apps” honors despite a very short track record.

Filed Under: Banking, Deals & Offers //

Microsoft / Activision Blizzard Merger Arbitrage $10,000 Experiment – Final Results

Posted on October 17, 2023 // 9 Comments

In January 2022, Microsoft (MSFT) announced an agreement to acquire Activision Blizzard (ATVI) for $95 per share, in an all-cash $68.7 billion transaction. However, the market placed some uncertainty about this event actually happening, which meant the ATVI share price stayed in the $70 to $80 range for most of 2022.

This created a potential event-driven opportunity. If the deal did work out, you would be cashed out at $95 per share, a ~20% premium. In my previous post Warren Buffett’s Activision Merger Arbitrage Deal, I compared his bet to a credit card bonus for us mere mortals. It was small fries to him, but still a fun and profitable thing to do.

As another educational “$10,000 experiment”, I decided to buy roughly $10,000 of ATVI (131 shares @ $76.65) on May 19, 2022.

All I had left to do was wait and see how things would unfold. This was where the education came in. It can be hard to keep holding during a constant stream of media articles about how various powerful governments were trying to block to deal. New blocks and lawsuits usually meant the ATVI stock price dropped a lot. As issues resolved, the stock price would jump back again.

Here is a Morningstar chart that tracked the growth of $10,000 invested in either ATVI (red) or the Vanguard S&P 500 index fund (blue) from May 2022 to October 2023.

The transaction was initially marked to close around June 2023. After lengthy negotiations with US, EU, and UK regulators, the acquisition finally closed on October 18th, 2023 after Microsoft made various concessions and promises to maintain competitiveness in the gaming industry. I received my cash payment on 10/13/23.

Microsoft was a stable buyer and patient negotiator, and Warren Buffett’s instincts that this would eventually work out were correct. In the end, I received an ATVI dividend of $129.69 on 8/17/23 and my final payout of $12,445 ($95 a share x 131 shares):

ATVI never actually traded at the full $95 on the exchanges, so my final numbers were a bit better than the chart above. My net profit on my $10,040 initial investment was $2,534, as compared to the $1,357 that I could have earned from owning the S&P 500 over the same time period. That’s an extra difference of $1,177. Using the XIRR function, I calculated a 17.4% annualized rate of return.

(Side note: Warren Buffett actually sold most of his ATVI stock before this final closing, between Q3 2022 and Q2 2023. I actually don’t know how much he gained from this purchase, it appears he sold a chunk when ATVI was about $85 a share in Q2 2023.)

Filed Under: Deals & Offers, Investing //

Best Interest Rates on Cash – October 2023

Posted on October 11, 2023 // 1 Comment

Here’s my monthly roundup of the best interest rates on cash as of October 2023, roughly sorted from shortest to longest maturities. There are often lesser-known opportunities available to individual investors. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you could earn from switching. Rates listed are available to everyone nationwide. Rates checked as of 10/10/2023.

TL;DR: Mostly minor movements upwards this month. 6% APY now (barely) available with 12-month CD and rewards checking accounts. More 5%+ savings accounts. Compare against Treasury bills and bonds at every maturity, taking into account state tax exemption.

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

  • 5.27% APY ($1 minimum). Raisin lets you switch between different FDIC-insured banks and NCUA-insured credit unions easily without opening a new account every time, and their liquid savings rates currently top out at 5.27% APY amongst multiple banks. See my Raisin review for details. Raisin does not charge depositors a fee for the service.
  • 5.36% APY (before fees). MaxMyInterest is another service that allows you to access and switch between different FDIC-insured banks. You can view their current banks and APYs here. As of 10/10/23, the highest rate is from Customers Bank at 5.36% APY. However, note that they charge a membership fee of 0.04% per quarter, or 0.16% per year (subject to $20 minimum per quarter, or $80 per year). That means if you have a $10,000 balance, then $80 a year = 0.80% per year. This service is meant for those with larger balances. You are allowed to cancel the service and keep the bank accounts, but then you may lose their specially-negotiated rates and cannot switch between banks anymore.

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

  • The top rate at the moment is at Elevault (app only) at 5.50% APY, but there are catches. I see that it is only valid on balances up to $40k with a $2,500 daily deposit limit? Why? Unsure if that applies to externally-initiated transfers. BrioDirect at 5.35% APY. CIT Platinum Savings at 5.05% APY with $5,000+ balance.
  • SoFi Bank is now up to 4.50% APY + up to $275 new account bonus with direct deposit. You must maintain a direct deposit of any amount each month for the higher APY. SoFi has their own bank charter now so no longer a fintech by my definition. See details at $25 + $250 SoFi Money new account and deposit bonus.
  • There are several other established high-yield savings accounts at 4.25%+ APY that aren’t the absolute top rate, but historically do keep it relatively competitive for those that don’t want to keep switching banks.

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

  • No Penalty CDs offer a fixed interest rate that can never go down, but you can still take out your money (once) without any fees if you want to use it elsewhere. Raisin has a 16-month No Penalty CD at 5.40% APY with $1 minimum deposit. CIT Bank has a 11-month No Penalty CD at 4.90% APY with a $1,000 minimum deposit. Ally Bank has a 11-month No Penalty CD at 4.55% APY for all balance tiers. Marcus has a 13-month No Penalty CD at 4.60% APY with a $500 minimum deposit. Consider opening multiple CDs in smaller increments for more flexibility.
  • Credit Human Federal Credit Union has a 12-month CD at 6.00% APY. Minimum opening deposit is $500. Early withdrawal penalty is a whopping 270 days interest (or $50, whichever is greater). Anyone can join this credit union via partner organization.

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

  • Vanguard Federal Money Market Fund is the default sweep option for Vanguard brokerage accounts, which has an SEC yield of 5.28% (works out to a compound yield of 5.41%, which is better for comparing against APY). Odds are this is much higher than your own broker’s default cash sweep interest rate.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 5.53% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 5.74% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

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

  • You can build your own T-Bill ladder at TreasuryDirect.gov or via a brokerage account with a bond desk like Vanguard and Fidelity. Here are the current Treasury Bill rates. As of 10/6/23, a new 4-week T-Bill had the equivalent of 5.43% annualized interest and a 52-week T-Bill had the equivalent of 5.42% annualized interest.
  • The iShares 0-3 Month Treasury Bond ETF (SGOV) has a 5.28% SEC yield and effective duration of 0.10 years. SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a 5.25% SEC yield and effective duration of 0.08 years.

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

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

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

  • Credit Union of New Jersey pays 6.00% APY on up to $25,000 if you make 15 debit card purchases, opt into online statements, and make at least 1 direct deposit, online bill payment, or automatic payment (ACH) per statement cycle. Anyone can join this credit union via $5 membership fee to join partner organization.
  • Pelican State Credit Union pays 6.05% APY on up to $10,000 if you make 15 debit card purchases, opt into online statements, log into your account at least once, and make at least 1 direct deposit, online bill payment, or automatic payment (ACH) per statement cycle. Anyone can join this credit union via partner organization membership.
  • Orion Federal Credit Union pays 6.00% APY on up to $10,000 if you make electronic deposits of $500+ each month (ACH transfers count) and spend $500+ on your Orion debit or credit card each month. Anyone can join this credit union via $10 membership fee to partner organization membership.
  • Genisys Credit Union pays 5.25% APY on up to $7,500 if you make 10 debit card purchases of $5+ each, and opt into receive only online statements. Anyone can join this credit union via $5 membership fee to join partner organization.
  • The Bank of Denver pays 5.00% APY on up to $25,000 if you make 12 debit card purchases of $5+ each, receive only online statements, and make at least 1 ACH credit or debit transaction per statement cycle. Thanks to reader Bill for the updated info.
  • All America/Redneck Bank pays 5.30% APY on up to $15,000 if you make 10 debit card purchases each monthly cycle with online statements.
  • Find a locally-restricted rewards checking account at DepositAccounts.

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

  • Farmer’s Insurance FCU has their 3, 6, 9, 12, 18, 24, 36, 48, or 60 month CDs ALL at 5.00% APY for a limited-time. $1,000 minimum. The early withdrawal penalty for all terms longer than a year is 180 days of dividends OR half of the remaining term’s daily dividends, whichever is greater. Anyone can join this credit union via partner organization.
  • United States Senate FCU has a 60-month CD at 4.86% APY $1,000 minimum. Jumbo CDs have slightly higher rates ($100k+, $200k+). The early withdrawal penalty is 360 days of interest. Anyone can join this credit union via partner organization.
  • You can buy certificates of deposit via the bond desks of Vanguard and Fidelity. You may need an account to see the rates. These “brokered CDs” offer FDIC insurance and easy laddering, but they don’t come with predictable early withdrawal penalties. Right now, I see a 5-year non-callable CD at 4.85% APY (callable: no, call protection: yes). Be warned that now both Vanguard and Fidelity will list higher rates from callable CDs, which importantly means they can call back your CD if rates drop later.

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

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. You might find something that pays more than your other brokerage cash and Treasury options. Right now, I see a 10-year CDs at 4.50% (callable: no, call protection: yes) vs. 4.66% for a 10-year Treasury. Watch out for higher rates from callable CDs where they can call your CD back if interest rates drop.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a unique guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate, currently 2.50% for EE bonds issued from May 2023 to October 2023. As of 10/10/23, the 20-year Treasury Bond rate was 5.13%, I’d wait to see what the new rate is for November 2023.

All rates were checked as of 10/10/2023.

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

Costco Now Sells 1 oz. Gold Bars (But Usually Out of Stock)

Posted on October 5, 2023 // 4 Comments

Time to clear out some of these browser tabs with interesting/funny stories that have come up this week. First up, Costco has been selling 1 ounce gold bars on its website (only pops up for a second for me), but inventory is sporadic and they sell out quickly (limit 2 per member). Per multiple media articles, the Costco CFO even addressed it in an official quarterly earnings call:

In a quarterly earnings call last week, Costco chief financial officer Richard Galanti told investors that the bars have been flying off the shelves, reported CNBC, saying, “I’ve gotten a couple of calls that people have seen online that we’ve been selling 1 ounce gold bars. Yes, but when we load them on the site, they’re typically gone within a few hours, and we limit two per member.”

At first I thought this was cute, but then I realized that there are multiple ways that the total savings is even more than just the low cost over spot:

  • First, the cost premium over spot is quite low at Costco, lower than other bullion websites.
  • You still earn credit card rewards. Most other bullion websites will add a surcharge if you pay with a credit card.
  • You can earn an additional 2% rewards if you are an Executive member.
  • You get free shipping.
  • Watch out for taxes at checkout. Depending on your area, you may or may not be subject to sales tax for gold bullion purchases over a certain amount. You may need to contact Costco after purchase to receive a refund of sales tax charged.

This could indeed work out to a good deal if you are in the market for gold bullion, but I have a feeling it’s going to be like trying to grab Taylor Swift tickets after this media coverage.

Filed Under: Deals & Offers //
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