Amazon: Pay with Citi ThankYou Points, Get Up to 50% Off (Targeted)

Posted on November 8, 2021 // 1 Comment

Check again to see if targeted for latest promo. If you have a Citi credit card that earns ThankYou points, you can redeem them to buy eligible items at Amazon.com. The redemption rate is 1 ThankYou points = 0.8 cents to spend at Amazon, which may not be the best value available. However, here are targeted promotions where you can save money after redeeming just 1 single MR point (a penny’s worth). (To see the link, you may need to visit this page on the internet if viewing this via e-mail or RSS.)

Here are some additional tips:

  • If you haven’t linked yet, you can link your ThankYou points balance to your Amazon account here.
  • If you have already linked your cards and aren’t targeted, you may consider removing your Citi card from your account completely, and then linking it again after a day, and then checking the offer page(s) again after another day.
  • Items must be marked as both sold AND shipped by Amazon.com.
  • Be sure to select your Citi credit card as your payment method and redeem at least 1 point or $0.01 in value of ThankYou points.
  • Savings should be reflected on the final order checkout page, before you commit to purchase.

Notably, the Citi Double Cash card, Citi Custom Cash card, and Citi Rewards+ all now earn ThankYou points. You may want to try linking them to see if you qualify for this promotion now or in the future. For redemptions, I’d probably stick with the 2% cash back option for the Double Cash, and look at the new airline transfer options for the premium travel cards like Citi Premier.

Filed Under: Credit Cards, Deals & Offers //

Amazon: Pay with Chase Ultimate Rewards Points, Get Up to 50% Off (Targeted)

Posted on November 8, 2021 // 12 Comments

Check again to see if targeted for newest discount. If you have Ultimate Rewards points from Chase credit cards, you can use them to buy eligible items at Amazon.com. The redemption rate is 1 Ultimate Rewards points = 1 cent at Amazon, which is the same rate as their statement credit redemptions. However, here are targeted promotions where you can save money after redeeming just 1 single MR point (a penny’s worth). (To see the link, you may need to visit this page on the internet if viewing this via e-mail or RSS.)

  • Get 50% off (max discount $15), valid on items shipped and sold by Amazon. Must redeem at least 1 Chase Ultimate Rewards point. You may be eligible even if you’ve done similar promos before.

Here are some additional tips:

  • If you haven’t linked yet, you can link your Ultimate Rewards points balance to your Amazon account here.
  • If you have already linked your cards and aren’t targeted, you may consider removing your Chase card from your account completely, and then linking it again after a day, and then checking the offer page(s) again after another day.
  • Items must be marked as both sold AND shipped by Amazon.com.
  • Be sure to select your Chase credit card as your payment method and redeem at least 1 point or $0.01 in value of Ultimate Rewards points.
  • Savings should be reflected on the final order checkout page, before you commit to purchase.

Keep in mind that you have options to earn 25% more value (1.25 cents per Ultimate Rewards point) from travel redemptions via the Chase portal and the Pay Yourself Bank tools if you have the Chase Sapphire Preferred, and 50% more value (1.5 cents per UR point) with the Chase Sapphire Reserve. You can transfer over any UR points earned elsewhere from the Chase Freedom and Chase Freedom Unlimited. You may get even better value by converting them to frequent flier miles like United Airlines or hotel points like Hyatt.

Filed Under: Credit Cards, Deals & Offers //

MyPanera Coffee + American Express Card: 6 Months of Free Unlimited Hot or Iced Coffee

Posted on November 4, 2021 // 17 Comments

American Express is offering all their cardholders a free 6-month subscription to MyPanera+. You must redeem via that link and sign into your AmEx account. Many of us have had MyPanera free trials before, but hopefully this can land us another 6 months.

Highlights of MyPanera+:

  • Valid for any size cup of light roast, dark roast, hazelnut, decaf, iced coffee, or hot tea.
  • Get one cup up to every two hours, with free unlimited refills of the same beverage in-store.
  • Excludes cold brew, espresso drinks, and iced tea.
  • One subscription per person.

Be aware that you will start to get charged $8.99 a month once those free 6 months are up. You should set a calendar reminder to cancel if you don’t want to get charged.

How to cancel your MyPanera+ Coffee subscription:

To cancel your subscription online, visit the Subscription section at http:/www.panerabread.com/MyPaneraCoffee or on the Panera Bread app. You can also call Panera Customer Service at 1-855-372-6372 to cancel your subscription.

The regular price of $8.99 per month works out to about 30 cents per cup if you got one per day. Panera has admitted that this is a loss leader and they hope you also buy a breakfast sandwich, muffin, etc. while you are there. However, you can always order via app and use their contactless curbside service (or drive-thru where available).

Nice to see another free AmEx perk. AmEx cardholders can also get a free 6-month trial of Audible Plus if you are a new customer.

My two “keeper” consumer American Express cards are the Amex EveryDay Card (keeps my Membership Rewards points active with no annual fee, helps qualify for various Amazon promotions) and the Blue Cash Preferred from AmEx (6% cash back on US supermarkets, up to $6,000 annually).

Filed Under: Deals & Offers //

Best Interest Rates on Cash – November 2021 Update

Posted on November 3, 2021 // 3 Comments

via GIPHY

Here’s my monthly roundup of the best interest rates on cash as of November 2021, roughly sorted from shortest to longest maturities. I look for lesser-known opportunities earning more than most “high-yield” savings accounts and money market funds while still keeping your principal FDIC-insured or equivalent. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you’d earn by moving money between accounts. Rates listed are available to everyone nationwide. Rates checked as of 11/3/2021.

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 using a different bank’s FDIC insurance. These do NOT require a certain number debit card purchases per month. Read about the types of due diligences you should do whenever opening a new bank account.

  • 3% APY on up to $100,000. The top rate is still 3% APY for October through December 2021 (can be 3.5% APY with their credit card), and they have not indicated any upcoming rate drop. HM Bradley requires a recurring direct deposit every month and a savings rate of at least 20%. Due to high demand, you must currently use a referral link to join. If you have any available to share (you get 3), please drop it in the comments of my HM Bradley review.
  • 3% APY on 10% of direct deposits + 1% APY on $25,000. One Finance lets you earn 3% APY on “auto-save” deposits (up to 10% of your direct deposit, up to $1,000 per month). Separately, they also pay 1% APY on up to another $25,000 with direct deposit. New customer $50 bonus via referral. See my One Finance review.
  • 3% APY on up to $15,000. Porte requires a one-time direct deposit of $1,000+ to open a savings account. New customer $50 bonus via referral. Important note: Porte is adding additional restrictions in January 2022. See my Porte review.
  • 1.20% APY on up to $50,000. You must maintain a $500 direct deposit each month for this balance cap, otherwise you’ll still earn 1.20% on up to $5,000. See my OnJuno review.

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

  • T-Mobile Money is still at 1.00% APY with no minimum balance requirements. The main focus is on the 4% APY on your first $3,000 of balances as a qualifying T-mobile customer plus other hoops, but the lesser-known fact is that the 1% APY is available for everyone. Thanks to the readers who helped me understand this. Unfortunately, some readers have reported their applications being denied.
  • Evangelical Christian Credit Union (ECCU) is offering new members 1.01% APY on up to $25,000 when you bundle a High-Yield Money Market Account & Basic Checking. (Existing members can get 0.75% APY.) To join this credit union, you must attest to their statement of faith.
  • There are several other established high-yield savings accounts at closer to 0.50% APY. Marcus by Goldman Sachs is on that list, and if you open a new account with a Marcus referral link (that’s mine), they will give you and the referrer a 0.50% boost on top of the current interest rate for 3 months. You can then extend this by referring others to the same offer. Right now, Marcus is paying 0.50% APY, so with the offer you’d get 1.00% APY currently for your first 3 months.

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. CFG Bank has a 13-month No Penalty CD at 0.62% APY with a $500 minimum deposit. Ally Bank has a 11-month No Penalty CD at 0.50% APY for all balance tiers. Marcus has a 7-month No Penalty CD at 0.45% APY with a $500 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • USALLIANCE Financial Credit Union has a 12-month CD at 0.85% APY ($500 minimum new money) with an early withdrawal penalty of 6 months interest. You must join the credit union first, but anyone can join via American Consumer Council (ACC).

Money market mutual funds + Ultra-short bond ETFs
Many brokerage firms that pay out very little interest on their default cash sweep funds (and keep the difference for themselves). Unfortunately, money market fund rates are very low across the board right now. Ultra-short bond funds are another possible alternative, but they are NOT FDIC-insured and may experience short-term losses at times. These numbers are just for reference, not a recommendation.

  • The default sweep option is the Vanguard Federal Money Market Fund which has an SEC yield of 0.01%. Vanguard Cash Reserves Federal Money Market Fund (formerly Prime Money Market) currently pays 0.01% SEC yield.
  • Vanguard Ultra-Short-Term Bond Fund currently pays 0.33% SEC yield ($3,000 min) and 0.43% SEC Yield ($50,000 min). The average duration is ~1 year, so your principal may vary a little bit.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 0.26% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 0.40% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

Treasury Bills and Ultra-short Treasury ETFs
Another option is to buy individual Treasury bills which come in a variety of maturities from 4-weeks to 52-weeks. You can also invest in ETFs that hold a rotating basket of short-term Treasury Bills for you, while charging a small management fee for doing so. T-bill interest is exempt from state and local income taxes. Right now, this section isn’t very interesting as T-Bills are yielding close to zero!

  • You can build your own T-Bill ladder at TreasuryDirect.gov or via a brokerage account with a bond desk like Vanguard and Fidelity. Here are the current Treasury Bill rates. As of 11/3/2021, a new 4-week T-Bill had the equivalent of 0.05% annualized interest and a 52-week T-Bill had the equivalent of 0.17% annualized interest.
  • The Goldman Sachs Access Treasury 0-1 Year ETF (GBIL) has a -0.07% SEC yield and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a -0.09% (!) SEC yield. GBIL appears to have a slightly longer average maturity than BIL.

US Savings Bonds
Series I Savings Bonds offer rates that are linked to inflation and backed by the US government. You must hold them for at least a year. If you redeem them within 5 years there is a penalty of the last 3 months of interest. The annual purchase limit 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 2021 and April 2022 will earn a 7.12% rate for the first six months. The rate of the subsequent 6-month period will be based on inflation again. Details here.
  • In mid-April 2022, the CPI will be announced and you will have a short period where you will have a very close estimate of the rate for the next 12 months. I will have another post up at that time.
  • See below about EE Bonds as a potential long-term bond alternative.

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

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

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

  • Quontic Bank is offering 1.01% APY on balances up to $150,000. This is best for people who have high balances, as the rate is not as high as other rewards checking accounts. You need to make 10 debit card point of sale transactions of $10 or more per statement cycle required to earn this rate.
  • (Balance caps will drop as of 11/17/2021) The Bank of Denver pays 2.00% APY on up to $10,000 (down from $25,000 as of 11/17/21) if you make 12 debit card purchases of $5+ each, receive only online statements, and make at least 1 ACH credit or debit transaction per statement cycle. The rate recently dropped. If you meet those qualifications, you can also link a Kasasa savings account that pays 1.00% APY on up to $25k (down from $50k as of 11/17/21). Thanks to reader Bill for the updated info.
  • Presidential Bank pays 2.25% APY on balances up to $25,000, if you maintain a $500+ direct deposit and at least 7 electronic withdrawals per month (ATM, POS, ACH and Billpay counts).
  • Evansville Teachers Federal Credit Union pays 3.30% APY on up to $20,000. You’ll need at least 15 debit transactions and other requirements every month.
  • Lake Michigan Credit Union pays 3.00% APY on up to $15,000. You’ll need at least 10 debit transactions and other requirements every month.
  • Find a locally-restricted rewards checking account at DepositAccounts.

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

  • Abound Credit Union has a 59-month Share Certificate at 1.35% APY ($500 min). Early withdrawal penalty is 1 year of interest (and only with the consent of the credit union, so be aware). Anyone can join this credit union via partner organization ($10 one-time fee).
  • NASA Federal Credit Union has a special 49-month Share Certificate at 1.60% APY ($10,000 min of new funds). Early withdrawal penalty is 1 year of interest. Anyone can join this credit union by joining the National Space Society (free). However, NASA FCU will perform a hard credit check as part of new member application.
  • Lafayette Federal Credit Union has a 5-year CD at 1.26% APY ($500 min). Early withdrawal penalty is 6 months of interest. Anyone can join this credit union via partner organization ($10 one-time fee).
  • You can buy certificates of deposit via the bond desks of Vanguard and Fidelity. You may need an account to see the rates. These “brokered CDs” offer FDIC insurance and easy laddering, but they don’t come with predictable early withdrawal penalties. Right now, I see a 5-year CD at 1.15% APY. Be wary of higher rates from callable CDs listed by Fidelity.

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

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. You might find something that pays more than your other brokerage cash and Treasury options. Right now, I see a 10-year CD at 2.00% APY vs. 1.53% for a 10-year Treasury. Watch out for higher rates from callable CDs from Fidelity.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a unique guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate which is quite low (currently 0.10%). I view this as a huge early withdrawal penalty. But if holding for 20 years isn’t an issue, it can also serve as a hedge against prolonged deflation during that time. Purchase limit is $10,000 each calendar year for each Social Security Number. As of 11/3/2021, the 20-year Treasury Bond rate was 2.01%.

All rates were checked as of 11/3/2021.

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

Synchrony Premier World Mastercard Review: 2% Cash Back + Free Cell Phone Protection

Posted on November 2, 2021 // 15 Comments

The Synchrony Premier World Mastercard is a rewards credit card that earns 2% cash back on every purchase with no annual fee. There are no rotating categories, activation deadlines, no earning caps, or miles/points to redeem. It was previously invite-only, but is now open to public applications subject to credit approval.

Here are a few minor but notable ways that make this 2% cash back card unique from the competition.

Cash back is credited automatically to your statement every month. Other competitors may require you to accrue either a minimum like $25 before you can redeem, or require you to manually request the rewards. With this card, your cash back gets credited to your statement every month, automatically. You don’t have to do anything.

World Mastercard perks. As a “World Mastercard” – a notch above the standard Mastercard – it includes a few unique benefits that most other 2% cash back cards don’t have. These include cell phone protection, DoorDash, Lyft, and Shoprunner benefits. Details at the World Mastercard official page, but here the perks I found most useful:

  • Cell phone protection. World Mastercard comes with $1,000 in yearly coverage ($600 max per claim, 2 claims per year) should your cell phone get stolen or need certain repairs. Simply pay for your cell phone bill with your World Mastercard to activate coverage. There is a $50 deductible.
  • DoorDash DashPass perks. Get free delivery, reduced fees and exclusive offers with DashPass, the monthly subscription service from DoorDash. New members get 3 free months of membership. In addition, World Mastercard DashPass members get $5 off their first 2 orders per month until 9/30/2022. Details.

If you aren’t into chasing bonuses or maximizing the value of points and miles, I recommend that everyone get some sort of flat 2% cash back credit card. Many people I know who prefer simplicity use a debit card with at most 1% cash back, while they could be earning double the cash back while getting better consumer fraud protections and still paying off the balance each month. For example, $2,000 in credit card spending a month is easily calculated at $40 month in cash back rewards, or $480 a year.

If you do like juggling multiple rewards cards, it’s still good to have a 2% cash back card as your “catch-all” back-up card. Traditional, for me this has been my Citi Double Cash card.

Bottom line. The Synchrony Premier World Mastercard offers 2% cash back on every purchase with no annual fee. This simple, flat structure minimizes any work on your end – even the cash back is automatically credited to your statement every month.

Filed Under: Credit Cards, Deals & Offers //

Finally Time to Start Redeeming Miles and Points Again!

Posted on October 29, 2021 // 3 Comments

It’s been a while since I’ve redeemed any airline miles or hotel points, so I’m excited to start doing so again. We still had thousands of dollars in airline credit balances from early 2020, and I just booked a flight and two hotel nights in Vancouver, Canada. This also gave me an opportunity to check out the current value of some of my currency. I have to work around school schedules so it’s hard to fully maximize the value of every point.

The cash price for a junior suite during Spring Break at the Hilton Vancouver Airport for our family of 5 was CAD $343, which is US $$277 per night.

The same room with the same cancellation policy costs 50,000 Hilton Honors points per night, which equates to a value of 0.55 cents per Hilton point. This compares well to my standard valuation of 0.5 cents per Hilton point. This is making me take a second look at the current Hilton Honors American Express offer of up to 130,000 Hilton points with no annual fee.

American Express is currently running a transfer bonus to Hilton Honors points, such that 1,000 Membership Rewards points = 2,600 Hilton Honors points. The promo ends soon, but the transferred points posted instantly for me.

This means that 20,000 Membership Rewards points would equal 52,000 Hilton points. That equates to a value of 1.4 cents per Membership Rewards point, much better than my standard valuation of 1.0 cents per MR point. (I would have gotten about 1.1 cents much without the transfer bonus.) Even better, I already had around 30,000 Hilton points lying around, so I only needed another 8,000 Membership Rewards points to reach the first night award. Later, I made another transfer of 19,000 Membership Rewards for the second night since I had about 1,000 Hilton points left over. This ability to “top off” a variety of accounts is why people love the flexible points so much.

In the end, I’m happy to finally convert some points into cash savings (and then into family memories). I’ve still got more planning to do, more hotel nights to book with my IHG/Hyatt stash, and I have a few award night certificates that I hope I can use up as well.

My point is that sure, I’d rather get $1,000 cash than 100,000 Membership Rewards points, but the fact is that it is a lot easier to get a big pile of points and miles for trying out a new credit card while never carrying a balance. I try to value them conservatively, but they definitely still hold value for me. I hope that you all are able to redeem your points and miles for memories soon as well.

Filed Under: Credit Cards, Deals & Offers //

BlockFi Promos: 8.75% APY Interest on Stablecoins, BTC Bonus, Bitcoin Rewards Credit Card

Posted on October 27, 2021 // 55 Comments

(Update February 2022: BlockFi now pays 8.75% APY on stablecoin balances up to $20,000 (USDC, GUSD, USDT) and 4.5% APY on up to 0.10 BTC.)

BlockFi is a cryptocurrency platform that both pays high interest on crypto deposits (including stablecoins) and lets you gain liquidity by borrowing cash backed by your cryptocurrency. They also a have a new credit card that pays Bitcoin rewards.

BlockFi Interest Account bonus. Receive up to $250 in bonus Bitcoin for new clients that sign up and fund a new BlockFi Interest Account. Here are the updated bonus tiers:

  • Deposit $25 to $1,499 Get $15 in BTC.
  • Deposit $1,500 to $19,999, Get $20 in BTC.
  • Deposit $20,000 to $39,999, Get $40 in BTC.
  • Deposit $40,000 to $74,999, Get $75 in BTC.
  • Deposit $75,000 to $99,999, Get $150 in BTC.
  • Deposit $100,000+, Get $250 in BTC.

This must be your first deposit, and you must make the qualifying deposits within 30 days of account opening. The required holding period is roughly 3 months. This one is an affiliate offer and you should see the promo code partner250 auto-filled on your application.

BlockFi now supports instant ACH transfers from your bank account. You can start earning interest on your funds or start trading immediately. Note that BlockFi may requires your deposits to stay there for at least 60 days:

BlockFi credits this bank transfer instantly (so you have the ability to trade and earn interest on those funds), however it generally takes 2-3 business days for the funds to be removed from your bank account. We require that you keep enough funds in your bank account to cover any bank transfers we have credited in our platform.

While we do not have a policy to hold these funds for 60 days, if we see certain behaviors such as attempting to withdraw all funds from the platform including value added via bank transfer we may put a hold on the value of the bank transferred funds for up to 60 days.

BIA interest rates. As of 2/2022, the BlockFi Interest Account (BIA) currently pays 4.5% APY on up to 0.1 Bitcoin (BTC) and 8.75% APY on up to $20,000 of USDC/GUSD stablecoins (subject to change on a monthly basis). There are no trade requirements, but when you deposit USD it will be converted to the GUSD (Gemini stablecoin) by default. (You can then use it to buy USDC or something else if you wish.)

Their overall business model is to earn a spread on the difference between lending out money and paying interest.

To earn interest on crypto, we lend assets to highly vetted and audited institutional counterparties. The interest we are able to pay is based on the yield that we are able to generate from lending, which directly correlates to the market demand in the space (I.e. what rate institutions are willing to pay to borrow specific crypto assets, as it varies from asset to asset).

One free crypto withdrawal per calendar month and one free stablecoin withdrawal per month. After that, additional stablecoin withdrawals are $0.25 each.

Earn 0.5% back on recurring crypto purchases. Another current promo is that if you set up recurring purchases of crypto, they will give you 0.5% back in stablecoin. Note that you can’t buy stablecoins, but you can buy other crypto like BTC and ETH.

*Clients who set up qualifying repeat trades during the promotion period (09/30/21 00:00:00 – 10/31/21 23:59:59 UTC) are eligible to get 0.50% back in stablecoin on all qualified trades. Note: stablecoin to stablecoin trades do not qualify.

Qualified repeat trades must be established within the promotion period, and be maintained without cancelling or changing until 11/30/21. Traded value will be tracked as the sum of all qualifying trades executed during the promotion period (09/30/21 00:00:00 – 11/30/21 23:59:59 UTC). Bonuses will be credited on or before the second Friday of the month in December, 12/10/21. This offer cannot be combined with other trading offers. Any recurring trades changed or cancelled by BlockFi on behalf of the client may still be eligible to receive 0.50% back in stablecoin for the time the trade was active at the discretion of BlockFi. Trading qualifications are dependent upon geographical or regulatory restrictions. Terms subject to change.

Blockfi credit card. The new Blockfi Rewards Visa Signature card has is a new rewards credit card that earns BTC instead of cash back. They’ve been adding a few new perks and removed the annual fee, so that altogether it can be a good compliment for BlockFi users. Here are the highlights:

  • Earn 3.5% back in bitcoin on all purchases in the first 90 days of card ownership after activation, up to $100 in bitcoin.
  • Earn 0.25% back on all eligible trades, up to $500 in BTC each month.
  • Earn 1.5% back in bitcoin on every purchase.
  • Earn 2% back in bitcoin on every purchase over $50,000 of annual spend.
  • No annual fee.

BlockFi is definitely one of the more well-established crypto sites, but you should do your own due diligence as it is not an FDIC-insured bank account nor a SIPC-insured brokerage account. I found that they were backed by some reputable firms including Fidelity Investments and Coinbase, with over $500 million raised so far. They use Gemini as their primary custodian, which is a licensed custodian and regulated by the New York State Department of Financial Services. As such, they will still require your name, address, and Social Security Number to verify the identity of all accountholders.

I hold some GUSD/USDC stablecoins and some crypto, but I consider them both forms of speculative investments. I’ve written about stablecoins in the past, but I like the analogy from Matt Levine of Bloomberg that stablecoins are like the casino chips of the crypto world since traditional banks won’t interact with them. Stablecoins are like casino chips. They said $1 on them, but you have to trust the casino to convert them back to cash. Thus, I would only hold casino chips from a stable casino where I am confident that I can cash them out again for US dollars. I find it both intriguing and wary that my cash is earning 9% APY here, but I also know I would much prefer holding them at BlockFi which has been valued as a $3 billion company than a DeFi-style app where millions can be lost with a typo. I also am of the opinion that GUSD and USDC are safer stablecoins than USDT. I don’t own any USDT (aka Tether).

Bottom line. BlockFi is offering a sign-up deposit bonus, over 8% APY on stablecoin deposits, also offer credit card that earns Bitcoin rewards along with a rebate on crypto trades.

Filed Under: Banking, Deals & Offers //

Spiral Banking App Review: $50 + $200 Bonus Details, Donations Required, iOS Only

Posted on October 27, 2021 // 8 Comments

Spiral is a new fintech banking app (iOS only currently) with a unique mandate on social responsibility through charitable giving. If you maintain an account with them, you must agree to set aside some portion of every deposit towards a charitable donation (Giving Account). The minimum amount is 0.25% ($2.50 for every $1,000 deposited). In turn, Spiral will match your donations up to $150 per year. Spiral is a fintech, with banking services provided by nbkc bank, Member FDIC. Hat tip to DoC.

Sign-up bonuses. Spiral is also offering some good sign-up bonuses to encourage you to try them out. There are currently two separate bonuses:

  • $50 bonus when you fund your new Spiral checking account with at least $200 by November 30, 2021.
  • $200 bonus after recurring direct deposits of at least $1000 each month for two consecutive months.

Inactivity fee warning. They promise the usual no minimum balance and no monthly fees, but there is an inactivity fee that is relatively punitive:

Spiral will charge your account $7 per month (up to 6 months) if you do not make a deposit or withdrawal for 90 days. Interest posting is not considered a deposit for purposes of this fee.

Giving Account details. Here’s an excerpt from the terms of their Giving Account:

As a condition to opening and maintaining a Spiral Account and receiving the Spiral Services, you must open an account designated as your donation or giving account (the “Giving Account”). Upon establishing your Spiral Account, you must deposit an amount equal to no less than 0.25% of your initial and future deposits to your Checking or Savings Accounts in the Giving Account. You may select (and periodically adjust on the Spiral App and Spiral Website) by indicating the percentage (between 0.25% and 20%) of each deposit (rounded down to the nearest penny). You agree to direct the distribution of funds in the Giving Account to a charitable organization of your choice that is an organization that qualifies as an exempt organization under section 501(c)(3) of the Internal Revenue Code, or the corresponding section of any future federal tax code, through the Spiral App and Spiral Website.

They have a very large directory of millions of eligible nonprofits.

Application details. I found this app interesting and decided to try it out. The application was straightforward, 100% online, and took a few minutes. My free credit monitoring suite detected no hard credit checks. I connected an external checking account via Plaid, made a $250 deposit, and quickly received in-app confirmation that I qualified for the $50 bonus.

My $250 deposit is pending, but I was reminded that $0.62 will be set aside for my giving account (see screenshots below). It appears that Spiral also seeded my giving account with a $5 “Giving Cash Bonus” as well. I discovered that the savings account only pays 0.07% APY, so I did not open one. I intend to go for the direct deposit bonus as well.

Filed Under: Banking, Deals & Offers //

M1 Finance Backdoor Roth IRA Instructions, How To w/ Screenshots

Posted on October 26, 2021 // 11 Comments

I recently completed a Backdoor Roth IRA contribution at M1 Finance (my review), so here is a detailed step-by-step walkthrough of the process along with screenshots based on my actual experience. M1 Finance currently has a new customer bonus offer up to $150 for new accounts, based on initial deposit amount. You can also add on the up to $2,500 transfer bonus for moving assets over from another brokerage firm. (Disclosure: I am now an affiliate of M1 Finance, and may be compensated if you click through my link and open a new account.)

Quick background. The Backdoor Roth IRA is a way for individuals to fund a Roth IRA even though their income (modified AGI) exceeds the phaseout limits set for a direct Roth IRA contribution. ($140,000 MAGI for individuals, $208,000 MAGI for married filing joint in 2021.) I won’t go deep into the details, but the general idea is:

  • An individual can contribute to a Traditional IRA without any income limits. However, the contribution is not tax-deductible if you exceed the income limits.
  • An individual can also convert a Traditional IRA to a Roth IRA, also without any income limits. You won’t owe any taxes on those non-deductible IRA contributions, because they are already after-tax.
  • Perform these two steps right after each other, and you have a “Backdoor” Roth IRA.

There are other considerations and details involved, so please do your own research before taking action. Roth conversions cannot be undone. This option may go away in 2022, so if you have any Traditional IRA balances that you have been considering to convert to a Roth IRA, you may want to make your decision before the end of 2021.

M1 Finance Backdoor Roth IRA walkthrough.

Open a new Traditional IRA account and fund it. If you already have an M1 account, click on the name of your portfolio in the top right area, and then click on “Add account”.

Choose “Retirement”, then “Traditional IRA”, then read and accept the terms. Next, you will have the option to select an investment “pie”, but since you are going to convert this quickly to a Roth IRA, it’s fine to just choose something close to cash. One option is the PIMCO Enhanced Short Maturity Active ETF (search for ticker MINT), add it your pie basket, and make it 100%. Finally, you must fund it, probably using your bank account numbers unless you have an existing M1 Finance account or other ideas.

Open a separate Roth IRA account, but do NOT fund it. M1 wants you to have the Roth IRA set up before any conversion request can be made. So start like above and open a new Retirement account, but this time pick Roth IRA. You can now pick your “real” investment portfolio pie, but again don’t fund it! Just think of it as an empty container for now.

Wait for a bit. It may take a few days for your Traditional IRA to get set up, funded, and invested into something. This step is still important. Some people even wait for the Traditional IRA to generate a full monthly account statement so they have paper documentation that they completed this step. Others just wait a day and then move on.

Find both your Traditional and Roth IRA account numbers. It’s conversion time. To find your account numbers, find your name in the top right corner. Click on that, and then click on “View Account Settings”. Then click on the subheading “Accounts”. You should end up with a list of your account nicknames, account numbers, and account types.

Request the conversion, sign and return documents. You can request the conversion via their automated chat bot, secure message, or phone number during business hours. I was able to complete the entire process via chat bot and email without having to use the phone. Here’s my chat transcript with personal details removed:

USER: roth conversion

BOT: M1 Invest can perform IRA conversions. Please keep in mind that due to high volumes, transfers can take 5-7 business days to complete. To get started with this process, please reply with the following information:

BOT: What is the M1 Invest account number of the traditional IRA you would like to convert out of?

USER: XXXXXXXX

BOT: What is the M1 Invest account number of the Roth IRA you would like to convert into?

USER: XXXXXXXX

BOT: What is the amount you would like to convert (if full account conversion, please simply confirm ‘full account’)?

USER: full account

BOT: What is the email address you use to login to M1?

USER: xx@xx.com

Within an hour, they emailed me a PDF form that I had to complete and sign. I uploaded the signed PDF into their secure drop box, and had confirmation that they had sent the request over to their clearing firm within another hour or so.

Jonathan,

We have submitted this conversion to our clearing firm. Both accounts will be paused for the duration of the transfer. We will notify you once the transfer is complete and you will see the funds placed in the correct account.

If you are transferring securities, please make sure the securities you are transferring are located in your Roth IRA portfolio.

This process can take 1-3 business days to complete.

Best,
Brokerage Operations
M1 Team

Once it shows in my M1 Invest dashboard that the funds have been moved into my Roth IRA account, then I’ll be done. I should be sent a form at tax time regarding the amount converted. If I contributed $6,000 to the non-deductible Traditional IRA and the value didn’t change at the time of conversion, then I won’t have any capital gains to pay taxes on. My $6,000 Backdoor Roth IRA contribution will be complete and now I can enjoy tax-free growth and tax-free withdrawals of all future gains. I hope you find this useful for informational purposes.

Filed Under: Deals & Offers, Investing //

Hanscom Federal CU Thrive Review: 5.00% APY Saving Habit Builder and Maintainer

Posted on October 20, 2021 // 80 Comments

savebuttonbankHanscom Federal Credit Union (HFCU) has hiked back up the rate on their CU Thrive account to 5.00% APY, which is a capped certificate of deposit that rewards consistent saving. The rate is set for 12 months, and during those 12 months you can transfer up to $500 every month from a HFCU checking account. No monthly fees. However, you cannot make any withdrawals during those 12 months, or you will be subject to an early withdrawal penalty of 90 days interest.

This product is not meant for big balances. Instead, it is meant to encourage the creation AND maintenance of a modest savings habit. 5.00% APY is more than 10 times what the top “high-yield” savings accounts offer right now.

How much interest can I earn? At 5% APY, if you maxed out this account and set aside the full $500 a month for 12 months, at the end you’d have put in $6,000 and earned about $150 in interest by the end of the year (~$162 if you made every transfer on the 1st of the each month by my quick calculations). $6,000 also happens to be just about the same amount as a full Roth IRA contribution (hint hint) or the foundation of a solid emergency fund.

At the end of the 12 months, all accrued savings plus earned dividends will be transferred into your primary savings account. It will NOT automatically renew at maturity. Each member can only have one CU Thrive account open at one time, but after one 12-month period ends you can open up another one to keep up the savings habit (assuming it is still offered). Full disclosure (PDF).

Eligibility details. To open a CU Thrive account, you must first open an HFCU checking account in addition to the savings account required for all members. HFCU offers a free checking account with no direct deposit and no minimum balance requirement. HFCU membership is open to active duty or retired military along with many other groups (see application), but anyone can also join the Air Force Association, Paul Revere Chapter for a one-time $20 fee and be eligible. On the application, choose the option “I am a member of or will be joining a sponsoring member organization.” You must also keep $25 in the share savings account as long as you are a member.

New refer-a-friend program. HFCU has a referral program which offers an additional $30 cash bonus after your new savings and checking accounts are open and in good standing for 90 days. The referring member gets $30 as well. If you would like a referral from me, please me send your full name, e-mail address, the text “HFCU referral” via my contact form. I will use this information only to fill out their referral form.

Account opening process (from a few years ago). I started the online application and had to provide the usual personal information and then answer questions based on my credit report to verify my identity. Based on my free credit monitoring, they did not perform a hard pull on my credit report. You can fund with an online bank transfer but they also gave me the option to fund with credit card up to $2,000 (not sure if this is still an option today). They didn’t mention if this would be considered a cash advance or not, but it showed up as a purchase for me. Finally, you must print out, sign, and mail in a signature card. You can also open an account in-person. All of their physical branches appear to be located in Massachusetts.

My 1-year experience. I had set the maximum $500 to be transferred every month to my CU Thrive account from my HFCU Checking account. I made 11 transfers but missed one because my checking balance was too low on the date of automatic transfer. My fault. When that happens, the account basically just skips the transfer. There is no penalty, you just don’t get to add that money to the account. I called them but they said there was no way to replace that transfer, even if I moved more money into the checking account a day later. Other than that, everything went very smoothly and I was paid my interest as promised. At the 1-year maturity date, the funds were automatically transferred to my HFCU savings account and the CU Thrive no longer shows up on my online account page. I can now open up another CU Thrive account, if I wish.

I also discovered that Hanscom Federal has paid a Loyalty Dividend to its Credit Union members for over 20 consecutive years. When I had this account, I earned another $1.57 in bonus loyalty dividends on top of my $78.46 of interest earned.

In addition to the CU Thrive and free checking options, HFCU also has a Kasasa Cash Checking account that offers up to 1.00% APY on balances up to $15,000 if you make at least 12 debit card or credit card purchases per month, complete at least 1 ACH Credit/Direct deposit per month, and enroll in online statements. This isn’t the highest Kasasa rate available nationwide, but if you’re already a member, it may be convenient.

Bottom line. The CU Thrive account is a good option for people looking to build up a savings habit, with 5.00% APY for 12 months. However, the system really works best if you use HFCU’s free checking as your primary checking account. (You may also consider their Kasasa Cash checking account with higher interest but debit card activity requirements.) Juggling it as an external savings account is perfectly possible, but you have to keep on top of your transfers to avoid idle cash earning zero interest. I received all of the interest promised, the customer service was nice and polite when contacted, and any errors were my own.

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

Quontic Bank High Interest Checking Review: 1.10% APY on all Balance Tiers

Posted on October 12, 2021 // 5 Comments

The Quontic Bank High Interest Checking account has recently raised their interest rate and applied it to all balance tiers, with the result being the rare combination of a competitive interest rate with a high balance limit. Here are the highlights:

  • Earn 1.10% APY all balance tiers.
  • APY earned is based on the portion of the daily balance within the specified tiers.
  • No minimum balance requirement.
  • No monthly fees.
  • $100 minimum deposit required to open an account.

In order to qualify for the higher rate, you must complete the following qualifying debit card transactions each statement cycle:

10 debit card point of sale transactions of $10 or more per statement cycle required to earn the maximum APY on the portion of the account daily balance tier.

If you meet those requirements, here is the exact interest rate breakdown:

– the portion of the daily balance $150,000 or less will earn 1.10% APY
– the portion of your daily balance above $150,000 and up to and including $1,000,000.00 earns from 1.10% APY
– the portion of your daily balance above $1,000,000 will earn from 1.10% APY
– If the qualifying activity requirement is NOT fulfilled, the interest rate paid on the entire balance will be 0.01% APY

Note the following details about qualifying point-of-sale (POS) transactions:

The following activities are not considered qualifying POS debit card transactions and do not count toward earning rewards: ATM- processed transactions; transfers between accounts; purchases made with debit cards not issued by our bank; cash over portions of point-of-sale transactions; Peer-to-Peer (P2P) payments (such as Apple Pay Cash*); loan payments or account funding made with your debit card and purchases made using third-party payment accounts.

I’ve shared other checking accounts with debit card requirements, but the main difference here is the rare combination of competitive interest rate and very high eligible balance. 1.10% APY on a $150,000 balance would result in earning $1,650 of interest in a year. The difference between that and an account paying 0.70% APY is $600 more interest over a year. There is also no monthly direct deposit requirement with this account.

Note: Earnings of $1,650 with 1.10% APY and $1,050 with 0.70% APY is calculated based on only those respective balances being maintained in the High Interest Checking account for an entire year, with nothing debited to or credited from the account during its duration.

* APY means Annual Percentage Yield

Updated as of 5/31/22.

Filed Under: Banking, Deals & Offers //

Best Interest Rates on Cash – October 2021 Update

Posted on October 7, 2021 // 6 Comments

via GIPHY

Here’s my monthly roundup of the best interest rates on cash as of October 2021, roughly sorted from shortest to longest maturities. I look for lesser-known opportunities earning at least double what most savings accounts and money market funds are earning while still keeping your principal FDIC-insured or equivalent. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you’d earn by moving money between accounts. Rates listed are available to everyone nationwide. Rates checked as of 10/6/2021.

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). I define “fintech” as a software layer on top of a different bank’s FDIC insurance. These do NOT require a certain number debit card purchases per month. Read about the types of due diligences you should do whenever opening a new bank account.

  • 3% APY on up to $100,000. The top rate is still 3% APY for October through December 2021 (can be 3.5% APY with their credit card), and they have not indicated any upcoming rate drop. HM Bradley requires a recurring direct deposit every month and a savings rate of at least 20%. Due to high demand, you must currently use a referral link to join. If you have any available to share (you get 3), please drop it in the comments of my HM Bradley review.
  • 3% APY on 10% of direct deposits + 1% APY on $25,000. One Finance lets you earn 3% APY on “auto-save” deposits (up to 10% of your direct deposit, up to $1,000 per month). Separately, they also pay 1% APY on up to another $25,000 with direct deposit. New customer $50 bonus via referral. See my One Finance review.
  • 3% APY on up to $15,000. Porte requires a one-time direct deposit of $1,000+ to open a savings account. New customer $50 bonus via referral. Important note: Porte is adding additional restrictions in January 2022. See my Porte review.
  • 1.20% APY on up to $50,000. OnJuno recently updated their rate tiers, while keeping existing customers on the grandfathered 2.15% APY rate. If you don’t maintain a $500 direct deposit each month, you’ll still earn 1.20% on up to $5k. See my updated OnJuno review.

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

  • T-Mobile Money is still at 1.00% APY with no minimum balance requirements. The main focus is on the 4% APY on your first $3,000 of balances as a qualifying T-mobile customer plus other hoops, but the lesser-known fact is that the 1% APY is available for everyone. Thanks to the readers who helped me understand this. Unfortunately, some readers have reported their applications being denied.
  • Evangelical Christian Credit Union (ECCU) is offering new members 1.01% APY on up to $25,000 when you bundle a High-Yield Money Market Account & Basic Checking. (Existing members can get 0.75% APY.) To join this credit union, you must attest to their statement of faith.
  • There are several other established high-yield savings accounts at closer to 0.50% APY. Marcus by Goldman Sachs is on that list, and if you open a new account with a Marcus referral link (that’s mine), they will give you and the referrer a 0.50% boost on top of the current interest rate for 3 months. You can then extend this by referring others to the same offer. Right now, Marcus is paying 0.50% APY, so with the offer you’d get 1.00% APY currently for your first 3 months.

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. CFG Bank has a 13-month No Penalty CD at 0.62% APY with a $500 minimum deposit. Ally Bank has a 11-month No Penalty CD at 0.50% APY for all balance tiers. Marcus has a 7-month No Penalty CD at 0.45% APY with a $500 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • Lafayette Federal Credit Union has a 12-month CD at 0.80% APY ($500 min). Early withdrawal penalty is 6 months of interest. Anyone can join this credit union via partner organization ($10 one-time fee).

Money market mutual funds + Ultra-short bond ETFs
Many brokerage firms that pay out very little interest on their default cash sweep funds (and keep the difference for themselves). Unfortunately, money market fund rates are very low across the board right now. Ultra-short bond funds are another possible alternative, but they are NOT FDIC-insured and may experience short-term losses at times. These numbers are just for reference, not a recommendation.

  • The default sweep option is the Vanguard Federal Money Market Fund which has an SEC yield of 0.01%. Vanguard Cash Reserves Federal Money Market Fund (formerly Prime Money Market) currently pays 0.01% SEC yield.
  • Vanguard Ultra-Short-Term Bond Fund currently pays 0.27% SEC yield ($3,000 min) and 0.37% SEC Yield ($50,000 min). The average duration is ~1 year, so your principal may vary a little bit.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 0.22% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 0.34% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

Treasury Bills and Ultra-short Treasury ETFs
Another option is to buy individual Treasury bills which come in a variety of maturities from 4-weeks to 52-weeks. You can also invest in ETFs that hold a rotating basket of short-term Treasury Bills for you, while charging a small management fee for doing so. T-bill interest is exempt from state and local income taxes. Right now, this section isn’t very interesting as T-Bills are yielding close to zero!

  • You can build your own T-Bill ladder at TreasuryDirect.gov or via a brokerage account with a bond desk like Vanguard and Fidelity. Here are the current Treasury Bill rates. As of 10/6/2021, a new 4-week T-Bill had the equivalent of 0.04% annualized interest and a 52-week T-Bill had the equivalent of 0.10% annualized interest.
  • The Goldman Sachs Access Treasury 0-1 Year ETF (GBIL) has a -0.06% SEC yield and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a -0.09% (!) SEC yield. GBIL appears to have a slightly longer average maturity than BIL.

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

  • “I Bonds” bought between May 2021 and October 2021 will earn a 3.54% rate for the first six months. The rate of the subsequent 6-month period will be based on inflation again. More info here.
  • In mid-October 2021, the CPI will be announced and you will have a short period where you will have a very close estimate of the rate for the next 12 months. I will have another post up at that time, although we already know that it will be likely higher than 5%!
  • See below about EE Bonds as a potential long-term bond alternative.

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

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

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

  • The Bank of Denver pays 2.00% APY on up to $25,000 if you make 12 debit card purchases of $5+ each, receive only online statements, and make at least 1 ACH credit or debit transaction per statement cycle. The rate recently dropped. If you meet those qualifications, you can also link a Kasasa savings account that pays 1.00% APY on up to $50k. Thanks to reader Bill for the updated info.
  • Presidential Bank pays 2.25% APY on balances up to $25,000, if you maintain a $500+ direct deposit and at least 7 electronic withdrawals per month (ATM, POS, ACH and Billpay counts).
  • Evansville Teachers Federal Credit Union pays 3.30% APY on up to $20,000. You’ll need at least 15 debit transactions and other requirements every month.
  • Lake Michigan Credit Union pays 3.00% APY on up to $15,000. You’ll need at least 10 debit transactions and other requirements every month.
  • Find a locally-restricted rewards checking account at DepositAccounts.

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

  • Abound Credit Union has a 59-month Share Certificate at 1.35% APY ($500 min). Early withdrawal penalty is 1 year of interest (and only with the consent of the credit union, so be aware). Anyone can join this credit union via partner organization ($10 one-time fee).
  • NASA Federal Credit Union has a special 49-month Share Certificate at 1.35% APY ($10,000 min of new funds). Early withdrawal penalty is 1 year of interest. Anyone can join this credit union by joining the National Space Society (free). However, NASA FCU will perform a hard credit check as part of new member application.
  • Lafayette Federal Credit Union has a 5-year CD at 1.26% APY ($500 min). Early withdrawal penalty is 6 months of interest. Anyone can join this credit union via partner organization ($10 one-time fee).
  • You can buy certificates of deposit via the bond desks of Vanguard and Fidelity. You may need an account to see the rates. These “brokered CDs” offer FDIC insurance and easy laddering, but they don’t come with predictable early withdrawal penalties. Right now, I see a 5-year CD at 1.10% APY. Be wary of higher rates from callable CDs listed by Fidelity.

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

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. You might find something that pays more than your other brokerage cash and Treasury options. Right now, I see a 10-year CD at 1.65% APY vs. 1.54% for a 10-year Treasury. Watch out for higher rates from callable CDs from Fidelity.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a unique guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate which is quite low (currently 0.10%). I view this as a huge early withdrawal penalty. But if holding for 20 years isn’t an issue, it can also serve as a hedge against prolonged deflation during that time. Purchase limit is $10,000 each calendar year for each Social Security Number. As of 10/6/2021, the 20-year Treasury Bond rate was 2.02%.

All rates were checked as of 9/7/2021.

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