Amazon Prime: $8.98 Echo Dot (3rd Gen) + Music Unlimited Trial

Posted on June 10, 2020 // 8 Comments

Update: Offer is back again, but sold out quickly last time!

Amazon has brought back a good deal for Prime members interested in a cheap Echo Dot (newest 3rd generation). Sign up for a 1-month Amazon Music Unlimited membership for $7.99, and you get can get an Echo Dot (3rd gen) for only $0.99 (total cost $8.98). Here’s how:

  1. Click here for the combined Echo Dot + 1-month trial. You must pay with a credit card (no gift card), which will be used to enroll in Amazon Music Unlimited at $7.99 per month. The shipping is free at checkout.
  2. The membership will auto-renew, but you can cancel your Amazon Music Unlimited trial at any time, anytime before the month is up.

This limited time offer of 1 month of Amazon Music Unlimited Individual Plan and an Echo Dot for $8.98 is available only to customers who subscribe to Amazon Music Unlimited Individual Plan and who purchase an eligible Echo device. Current subscribers are not eligible. After the 1-month promotional term, your Amazon Music subscription will automatically continue at the monthly price of $7.99 plus applicable taxes until you cancel.

Amazon Music unlimited lets you listen to all 60 million songs ad-free and on-demand, you can call up songs with Alexa, and you can listen offline with unlimited skips.

Filed Under: Deals & Offers //

Best Interest Rates on Cash – June 2020

Posted on June 3, 2020 // 11 Comments

Another month of slight rate drops, although bank accounts can still beat out Treasury bonds and/or brokerage cash sweep options by a significant margin.

Here’s my monthly roundup of the best interest rates on cash for June 2020, roughly sorted from shortest to longest maturities. I track these rates because I keep 12 months of expenses as a cash cushion and also invest in longer-term CDs (often at lesser-known credit unions) when they yield more than bonds. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you’d earn by moving money between accounts. Rates listed are available to everyone nationwide. Rates checked as of 6/2/2020.

High-yield savings accounts
While the huge megabanks make huge profits while paying you 0.01% APY, it’s easy to open a new “piggy-back” savings account and simply move some funds over from your existing checking account. The interest rates on savings accounts can drop at any time, so I list the top rates as well as competitive rates from banks with a history of competitive rates. Some banks will bait you with a temporary top rate and then lower the rates in the hopes that you are too lazy to leave.

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

  • No Penalty CDs offer a fixed interest rate that can never go down, but you can still take out your money (once) without any fees if you want to use it elsewhere. Marcus has a 7-month No Penalty CD at 1.20% APY with a $500 minimum deposit. Ally Bank has a 11-month No Penalty CD at 1.20% APY for all balance tiers. CIT Bank has a 11-month No Penalty CD at 1.15% APY with a $1,000 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 1.61% APY ($500 min). Early withdrawal penalty is 180 days of interest. Anyone can join via partner organization for one-time $10 fee. Note that you will have to park $50 in a share savings account while a member.

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

  • Vanguard Prime Money Market Fund currently pays an 0.32% SEC yield. The default sweep option is the Vanguard Federal Money Market Fund which has an SEC yield of 0.20%. You can manually move the money over to Prime if you meet the $3,000 minimum investment.
  • Vanguard Ultra-Short-Term Bond Fund currently pays 1.61% SEC yield ($3,000 min) and 1.71% SEC Yield ($50,000 min). The average duration is ~1 year, so there is more interest rate risk.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 1.87% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 1.83% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months. Note that there was a slight drop in net asset value during the recent market stress.

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 probably 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 6/2/2020, a new 4-week T-Bill had the equivalent of 0.12% 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 0.57% SEC yield and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a -.04% (!) SEC yield. GBIL appears to have a slightly longer average maturity than BIL. Expect that GBIL yield to drop significantly as it is updated.

US Savings Bonds
Series I Savings Bonds offer rates that are linked to inflation and backed by the US government. You must hold them for at least a year. There are annual purchase limits. If you redeem them within 5 years there is a penalty of the last 3 months of interest.

  • “I Bonds” bought between May 2020 and October 2020 will earn a 1.06% 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 2020, the CPI will be announced and you will have a short period where you will have a very close estimate of the rate for the next 12 months. I will have another post up at that time.

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

  • The only notable card left in this category is Mango Money at 6% APY on up to $2,500, but there are many hoops to jump through. Requirements include $1,500+ in “signature” purchases and a minimum balance of $25.00 at the end of the month.

Rewards checking accounts
These unique checking accounts pay above-average interest rates, but with unique risks. You have to jump through certain hoops, and if you make a mistake you won’t earn any interest for that month. Some folks don’t mind the extra work and attention required, while others do. Rates can also drop to near-zero quickly, leaving a “bait-and-switch” feeling. I don’t use any of these anymore.

  • Consumers Credit Union Free Rewards Checking (my review) still offers up to 4.09% APY on balances up to $10,000 if you make $500+ in ACH deposits, 12 debit card “signature” purchases, and spend $1,000 on their credit card each month. The Bank of Denver has a Free Kasasa Cash Checking offering 3% APY on balances up to $25,000 if you make 12 (temporarily 6) debit card purchases and at least 1 ACH credit or debit transaction per statement cycle. If you meet those qualifications, you can also link a savings account that pays 2% APY on up to $50k. Thanks to reader Bill for the tip. 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.

  • Lafayette Federal Credit Union has a 5-year certificate at 2.02% APY ($500 min). Beware that the early withdrawal penalty is 600 days of interest! Anyone can join via partner organization for one-time $10 fee. Note that you will have to park $50 in a share savings account while a member.
  • Pen Air Federal Credit Union has a 5-year certificate now at 1.85% APY ($500 minimum). Early withdrawal penalty is 180 days of interest. Their other terms are competitive (relatively), if you want build a CD ladder. Anyone can join this credit union via partner organization ($3 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. Vanguard has a 5-year at 1.05% APY right now. Be wary of higher rates from callable CDs listed by Fidelity.

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

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. Watch out for higher rates from callable CDs from Fidelity.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a unique guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate which is quite low (currently a sad 0.10% rate). I view this as a huge early withdrawal penalty. But if holding for 20 years isn’t an issue, it can also serve as a hedge against prolonged deflation during that time. As of 6/2/2020, the 20-year Treasury Bond rate was 1.24%.

All rates were checked as of 6/2/2020.

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

Citibank $200/$400/$700 Checking Account Bonus 2020

Posted on May 28, 2020 // Leave a Comment

Citibank has tiered $200, $400, and $700 bonus offers when you open a new eligible Citi checking account by 6/30/20 and deposit and maintain a certain balance for 60 to 150 days. There is also a $1,500 bonus if you have $200,000 to move over. This offer is restricted to those who have not had a Citibank checking account within the last 180 calendar days. Here are the highlights followed by a few tips on how to optimize the bonus.

$200 bonus details:

  • Open a new eligible checking account in the Basic Banking Package during the offer period 4/01/2020 to 6/30/2020.
  • Within 30 days of opening your account, deposit $5,000 in New-to-Citibank funds into the new checking account.
  • Maintain a minimum balance of $5,000 for 60 consecutive calendar days.
  • You will receive your cash bonus within 90 days after you complete the required activities.
  • For the Basic Banking Package, to waive the $12 monthly service fee, make one qualifying direct deposit per statement period and one qualifying bill payment per statement period, or maintain a $1,500 or more combined average monthly balance in eligible linked accounts.

$400 bonus details:

  • Open new eligible checking and savings accounts in the Citibank® Account Package during the offer period 4/01/2020 to 6/30/2020.
  • Within 30 days of opening your account, deposit $15,000 in New-to-Citibank funds between the new checking and savings accounts.
  • Maintain a minimum balance of $15,000 between the checking and savings accounts for 60 consecutive calendar days.
  • You will receive your cash bonus within 90 days after you complete the required activities.
  • A monthly service fee of $25 and a $2.50 non-Citibank ATM fee apply to the checking account in the Citibank Account Package if a combined average monthly balance of $10,000 or more is not maintained.

$700 bonus details:

  • Open new eligible checking and savings accounts in the Citi Priority Account Package during the offer period 4/01/2020 to 6/30/2020.
  • Within 30 days of opening your account, deposit $50,000 in New-to-Citibank funds between the new checking and savings accounts.
  • Maintain a minimum balance of $50,000 between the checking and savings accounts for 60 consecutive calendar days.
  • You will receive your cash bonus within 90 days after you complete the required activities.
  • A monthly service fee of $30 applies to the checking account in the Citi Priority Account Package if a combined average monthly balance of $50,000 or more is not maintained. There is no monthly service fee for a checking account in the Citigold Account Package.

$1,500 bonus details:

  • Open new eligible checking and savings accounts in the Citigold Account Package during the offer period 4/01/2020 to 6/30/2020.
  • Within 30 days of opening your account, deposit $200,000 in New-to-Citibank funds between the new checking and savings accounts.
  • Maintain a minimum balance of $200,000 between the checking and savings accounts for 60 consecutive calendar days.
  • You will receive your cash bonus within 90 days after you complete the required activities.
  • If you do not maintain a minimum combined average monthly balance of $200,000 in eligible linked deposit, retirement and investment accounts, your Citigold Account Package will be converted to the Citi Priority Account Package and your accounts will be subject to the terms and conditions then in effect for that package.

Fine print analysis and value calculations. A tricky part of this bonus is the following fine print:

At the time the Cash Bonus is paid, it will be credited to the new Eligible Checking Account. If the Eligible Checking Account is closed, then the Cash Bonus will be credited to the new Eligible Savings Account. Open accounts must be in good standing.

You explicitly cannot “downgrade” your account to one with lower monthly fees during the 60 day maintenance period, but this seems to also suggest that you need to maintain the package that you opened until the bonus arrives. (It’s not 100% clear, but that is the conservative interpretation.) That means that in order to avoid the possibly hefty monthly fees, you would have to leave a certain amount of money in the account not for 60 days, but up to 150 days until the bonus is deposited.

After the 60 day maintenance period, you would want to withdraw everything not need to avoid the monthly fees, as both the checking and savings account pay negligible interest. Here’s how that would work for each tier:

  • $200 bonus tier. Deposit and maintain $5,000 for 60 days, then lower to $1,500 for 90 days.
  • $400 bonus tier. Deposit and maintain $15,000 for 60 days, then lower to $10,000 for 90 days.
  • $700 bonus tier. Deposit and maintain $50,000 for 150 days.
  • $1,500 bonus tier. Deposit and maintain $200,000 for 150 days. (There may be some alternatives like moving over some investments to satisfy the Citigold requirements.)

Bonus will be reported on 1099-INT (as should be expected). Here is the rough equivalent annualized APY earned from each bonus if you followed the schedule above exactly, got the promised bonus at the 150 day mark, and then downgraded/closed/moved your money out:

  • $200 bonus works out to ~16.5% annualized interest.
  • $400 bonus works out to ~8.0% annualized interest.
  • $700 bonus works out to ~3.4% annualized interest.
  • $1,500 bonus works out to ~1.8% annualized interest.

I have done Citibank bonuses in the past and haven’t had any issues, although they did wait until the last possible moment to post the bonus. I did not experience a hard credit check upon opening. However, others have reported having to call them up and ask for the bonus, and some have reported that they were denied the bonus improperly. Their above-average complaints of unreliability is a big reason why I would not downgrade the accounts, in order to help maintain proper bonus tracking. For all bank bonuses, be sure to keep track of your promotion details and transaction dates in a Google Doc or other spreadsheet.

Bottom line. Citibank has a set of tiered bonuses for opening a new checking and savings accounts with them, which I have broken down how to optimize based on the fine print. If you were planning on opening an account anyway, this can be a good offer. Be sure you understand the terms and conditions first.

Filed Under: Banking, Deals & Offers //

Tastyworks Brokerage Bonus: 100 Free Shares, Worth $100 to $600

Posted on May 18, 2020 // 9 Comments

Free stock shares are the trendy bonus nowadays – WeBull, SoFi, Robinhood, Public, and more – but how about 100 free shares? Tastyworks wants your attention by offering 100 free shares of a randomly-picked stock valued between $1 and $6 per share. That means the total value will be between $100 and $600, with an average total value of $200-$220. Offer now extended until 6/30/2020. Details below.

The odds of specific stock allocation is implemented as follows: there is a 70% chance of receiving Stock priced under $2.00 per share, and a 30% chance of receiving Stock priced over $2.00 per share. The value of Stock received will average $200-$220 USD based on the price of shares at which the Stock is purchased by tastyworks.

Tastyworks is a discount brokerage targeted at active options traders. They offer $0 comission stock trades and options commissions at $1 to open and $0 to close. That means a open/close roundtrip on options costs $1.00. TD Ameritrade, Schwab, Fidelity, and E-Trade all charge $0.65 per contract, which is $1.30 for open/close roundtrip. Thus, Tastyworks is 30% cheaper than the big brokers for options trading while also having the full fancy options interface.

For this promotion, you have to fund a new account with at least $2,000. You get the 100 bonus shares after a week, but you have to keep your $2,000 plus the value of the bonus shares for at least 3 months (otherwise they yank it back). See quoted fine print below:

The funds deposited to Qualified Customer’s account, plus the initial value of the Stock received (less any losses on the Stock) are required to remain in Qualified Customer’s account for a minimum of three months starting the day shares deposited into account, subject to extension from date of entry, before withdrawal in order for Qualified Customer to receive the value of the Stock (“Three Month Period.”) The value of stock Qualified Customer receives will be credited to their account upon deposit, but will be debited out of Qualified Customer’s account if the Three Month Period requirement is not met, and will not count toward Qualified Customer’s buying power until the end of the Three Month Period. Qualified Customers can sell their Stock once deposited into their account, but the proceeds will be subject to the foregoing Three Month Period requirement.

All that fine print aside, a $200 average payout on a $2,000 deposit with a minimum 3 month holding period is a good ratio. Just don’t go nuts with the options trading!

Filed Under: Deals & Offers, Investing //

PenFed Credit Union $200 Checking Bonus

Posted on May 12, 2020 // 15 Comments

Update: This promotion appears to have ended early.

Pentagon Federal Credit Union has a $200 bonus promotion for opening their new Access America checking account. You must deposit a minimum of $1,200, and make 5 debit card purchases within 90 days of account opening. They market this as a way of “adding $200” to your $1,200 stimulus check (not a requirement). Offer expires 6/14/20.

In order to avoid a $10 monthly fee with this account, you must maintain a $500 daily balance OR a monthly direct deposit of $500 or more. I would just keep at least $500 in the account until the bonus posts. With interest rates quickly heading back to 1% APY or lower, these bank bonuses are starting to look more appealing. For example, it would take $20,000 earning 1% APY for an entire year to make $200 in interest.

PenFed offers a variety of other financial services. With this account, you also become eligible for their 2% cash back credit card and their $250 bonus on car loan refinances. They’ve also been competitive on mortgages in the past. Unfortunately, their bank CD rates haven’t been great recently.

PenFed’s membership eligibility includes affiliated military and Federal employees, but anyone can join if they are a member of a partner organization. I have been a member for years after joining the National Military Family Association for $17. The website also states that being a previous Red Cross blood donor or volunteer makes you eligible. I recommend going through the PenFed application process and letting them guide you.

Offer valid from 5/4/2020 – 6/14/2020. Must receive at least $1200 in deposits in your checking account within 90 days of account opening and make 5 debit card purchases in the first 90 days. Only available to new personal checking members who do not have an existing checking account and qualify for an Access America Account. Once the criteria is met, the bonus will be credited to the new personal checking account no later than 120 days from account opening. Account must remain open, active and in good standing (no negative balance) at time bonus is distributed. PenFed will issue an IRS form 1099 reporting the value of the bonus. One bonus per member.

Filed Under: Banking, Deals & Offers //

Best Interest Rates on Cash – May 2020

Posted on May 6, 2020 // 8 Comments

The Federal Reserve is buying everything in sight (even junk bonds apparently), so it has been rate drops all around. Bank accounts now offer much higher available rates than Treasury bonds. I’d also recommend checking on your brokerage money market sweep fund as most are back to very low rates.

Here’s my monthly roundup of the best interest rates on cash for May 2020, roughly sorted from shortest to longest maturities. I track these rates because I keep 12 months of expenses as a cash cushion and also invest in longer-term CDs (often at lesser-known credit unions) when they yield more than bonds. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you’d earn by moving money between accounts. Rates listed are available to everyone nationwide. Rates checked as of 5/6/2020.

High-yield savings accounts
While the huge megabanks make huge profits while paying you 0.01% APY, it’s easy to open a new “piggy-back” savings account and simply move some funds over from your existing checking account. The interest rates on savings accounts can drop at any time, so I list the top rates as well as competitive rates from banks with a history of competitive rates. Some banks will bait you with a temporary top rate and then lower the rates in the hopes that you are too lazy to leave.

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

  • No Penalty CDs offer a fixed interest rate that can never go down, but you can still take out your money (once) without any fees if you want to use it elsewhere. Marcus has a 7-month No Penalty CD at 1.55% APY with a $500 minimum deposit. Ally Bank has a 11-month No Penalty CD at 1.50% APY with a $25,000 minimum deposit. CIT Bank has a 11-month No Penalty CD at 1.40% APY with a $1,000 minimum deposit. You may wish to open multiple CDs in smaller increments for more flexibility.
  • Comenity Direct has a 12-month CD at 1.70% APY ($1,500 min).

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

  • Vanguard Prime Money Market Fund currently pays an 0.57% SEC yield. The default sweep option is the Vanguard Federal Money Market Fund which has an SEC yield of 0.40%. You can manually move the money over to Prime if you meet the $3,000 minimum investment.
  • Vanguard Ultra-Short-Term Bond Fund currently pays 2.00% SEC yield ($3,000 min) and 2.10% SEC Yield ($50,000 min). The average duration is ~1 year, so there is more interest rate risk.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 2.47% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 2.48% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months. Note that the higher yield come partly from a drop in net asset value during the recent market stress.

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 probably 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 5/6/2020, a new 4-week T-Bill had the equivalent of 0.09% annualized interest and a 52-week T-Bill had the equivalent of 0.16% annualized interest.
  • The Goldman Sachs Access Treasury 0-1 Year ETF (GBIL) has a 0.57% SEC yield and the SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a 0.14% SEC yield. GBIL appears to have a slightly longer average maturity than BIL. Expect that GBIL yield to drop significantly as it is updated.

US Savings Bonds
Series I Savings Bonds offer rates that are linked to inflation and backed by the US government. You must hold them for at least a year. There are annual purchase limits. If you redeem them within 5 years there is a penalty of the last 3 months of interest.

  • “I Bonds” bought between May 2020 and October 2020 will earn a 1.06% 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 2020, the CPI will be announced and you will have a short period where you will have a very close estimate of the rate for the next 12 months. I will have another post up at that time.

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

  • The only notable card left in this category is Mango Money at 6% APY on up to $2,500, but there are many hoops to jump through. Requirements include $1,500+ in “signature” purchases and a minimum balance of $25.00 at the end of the month.

Rewards checking accounts
These unique checking accounts pay above-average interest rates, but with unique risks. You have to jump through certain hoops, and if you make a mistake you won’t earn any interest for that month. Some folks don’t mind the extra work and attention required, while others do. Rates can also drop to near-zero quickly, leaving a “bait-and-switch” feeling. I don’t use any of these anymore.

  • Consumers Credit Union Free Rewards Checking (my review) still offers up to 4.09% APY on balances up to $10,000 if you make $500+ in ACH deposits, 12 debit card “signature” purchases, and spend $1,000 on their credit card each month. The Bank of Denver has a Free Kasasa Cash Checking offering 3% APY on balances up to $25,000 if you make 12 debit card “signature” purchases and at least 1 ACH credit or debit transaction per statement cycle. If you meet those qualifications, you can also link a savings account that pays 2% APY on up to $50k. Thanks to reader Bill for the tip. 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.

  • The Federal Savings Bank has a 5-year certificate at 2.05% APY ($10,000 minimum). Early withdrawal penalty is 365 days of interest.
  • Pen Air Federal Credit Union has a 5-year certificate at 2.20% APY ($500 minimum). Early withdrawal penalty is 180 days of interest. Their other terms are competitive as well, if you want build a CD ladder. Anyone can join this credit union via partner organization ($3 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. Vanguard and Fidelity both have a 5-year at 1.00% APY right now. Be wary of higher rates from callable CDs listed by Fidelity.

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

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. Watch out for higher rates from callable CDs from Fidelity.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a unique guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate which is quite low (currently a sad 0.10% rate). I view this as a huge early withdrawal penalty. You could also view it as a hedge against prolonged deflation (again if you can hold on for 20 years). As of 5/6/2020, the 20-year Treasury Bond rate was 1.16%.

All rates were checked as of 5/6/2020.

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

Red Pocket Mobile: iPhone SE $299 with 2 Years Service (Starts At $10/Month)

Posted on April 27, 2020 // Leave a Comment

(One more iPhone SE deal! Apologies if these bore you; I have no more planned. They do also happen to be the cheapest MVNOs for anyone with an existing phone. Compare with Visible and Mint Mobile.)

Red Pocket Mobile is an MVNO with very competitive pricing that doesn’t stick with any single network. You can choose which one you want: AT&T (GSMA), Sprint (CDMAS), T-Mobile (GSMT), and Verizon (CDMA). They aren’t allowed to actually use the trademarked names on their pages, but it’s an easy conversion. Note that the pricing for certain plans differs by the network chosen, and they often shift the pricing around with limited-time offers. If bringing over your own device and you want to switch networks, use their compatibility checker first.

Their current front page deal is the iPhone SE for regular price ($399) but with 6 months of free 3GB service. At $14/month, this could be seen as a $84 discount. However, if you proceed to the iPhone SE purchase page and agree to a 12 month or 24 month term, you can get alternative discounts on the phone itself instead as well as long-term discounts on the service. If you commit to 2 years, you can get the iPhone SE for $299 ($100 off) and have a choice of several monthly plans.

Example: iPhone SE + 2 years of Unlimited talk, text, and 3 GB LTE data = $299 + $336 = $635 for 2 years. This works out close to $26.50 per month. Breaks down to $12.50/month for the phone and $14/month for service. GSMA network (AT&T). You can upgrade to 7GB LTE for $20/month, 15 GB LTE for $30/month, or Unlimited LTE for $45/month. You could also downgrade to 1,000 minutes, unlimited text, and 1 GB LTE data for $10/month. After you reach your LTE data allotment each month, you still get unlimited data at slower 2G speeds. Looks like a little bit more if you finance it over monthly payments. UPS Ground shipping is free.

iPhone SE 2020 quick take. Apple’s new $400 iPhone SE may be called a “budget” phone, but it is a “parts bin” phone that saves money not by using lower-quality ingredients, but instead by combining high-quality parts from other iPhones. If you’re okay with the older body style (might be what you already have), this phone is a great value at $400 (64 GB). Check out the review from your favorite tech site, but here are the basics:

  • Screen/Body: iPhone 8. Same outer shape as iPhone 6/7/8. Retina 4.7″ screen. Touch ID (no Face ID).
  • Latest CPU: iPhone 11 Pro. Same A13 Bionic chip as inside the current iPhone 11 Pro that costs $1,000. These fast internals mean this phone won’t be obsolete for 4+ years.
  • Camera: iPhone XR+. The hardware specs are like the iPhone XR which still costs $600 today. However, combined with the faster internals, Apple added software improvements to make it take better photos (better portrait mode, etc). Still an upgrade over the iPhone 6/7/8 cameras.
Filed Under: Deals & Offers, Frugal Living //

Visible Promo: iPhone SE $184 Net Price After Paying 2 Months Service

Posted on April 26, 2020 // 2 Comments

(After I wrote this up, the iPhone SE went out of stock. If you want this deal, I would check back regularly as it might be going to be in and out of stock for a while.)

Visible is one of multiple discount MVNOs that use the Verizon network, but they are the only one directly owned by Verizon (smart move, VZ). Their current promo gives you a $100 Prepaid card to bring over your own existing device after paying for two months of service. However, if you can also buy the iPhone SE 2020 for $384 + get a $200 Prepaid Mastercard after paying for two months of service. That’s a net price of $184, although Visible may cost more on a monthly basis than you might pay with another MVNO like Mint Mobile. You should compare the all-in total prices over two years, along with other factors like data usage, network preference, and upfront costs vs. monthly payments.

Visible costs $40 a month and includes unlimited talk, text, and LTE data. Right now, the first month is $25/month. Verizon network. No contracts. Online customer service only. Mobile hotspot included for one tethered device at up to 5 Mbps max. Data may be slowed during network congestion. Visible also has a Party Pay feature where if you can join with a group of two, three, or four, you can get it down to $25/month. Each person manages their Visible account and their bill separately. You can join a Party at any time after becoming a Visible customer. Try the r/VisiblePartyPay subreddit to join with some random people on the internet (which appears to be within the rules).

iPhone SE 2020 quick take. Apple’s new $400 iPhone SE may be called a “budget” phone, but I prefer to think of it as a “parts bin” phone that saves money not by using cheaper, low-quality ingredients, but instead by RE-using high-quality parts from other iPhones. If you’re okay with the older body style (might be what you already have), this phone is a great value at $400 (64 GB). Check out the review from your favorite tech site, but here’s my take:

  • Screen/Body: iPhone 8. Same size as iPhone 6/7/8. Retina 4.7″ screen. Touch ID (no Face ID).
  • Latest CPU: iPhone 11 Pro. Same A13 Bionic chip as inside the current iPhone 11 Pro that costs $1,000. These fast internals mean this phone won’t be obsolete for 4+ years.
  • Camera: iPhone XR+. The hardware specs are like the iPhone XR which still costs $600 today. However, combined with the faster internals, Apple added software improvements to make it take better photos (portrait mode, etc). The camera is still significantly better than iPhone 6/7/8.

Here is the fine print on the promo. Just know that it is a rebate that you have to wait a bit for, as opposed to getting the discount upfront or via a monthly payment plan.

Buy an eligible device from us, pay for your first two months of service, and you’ll get a Prepaid Mastercard Virtual Account sent to you via email. Purchase a device over $400 and you’ll get a $200 Prepaid Mastercard Virtual Account. The Apple iPhone SE is also eligible for the $200 Prepaid Mastercard Virtual Account. Purchase a device under $400, but still more than $50, and you’ll receive a $100 Prepaid Mastercard Virtual Account*. Certain Samsung devices are not eligible. Already have a phone you love? No problem. If it’s compatible with Visible, just activate it, pay for two months of service, and we’ll email you a $100 Prepaid Mastercard Virtual Account too.

Filed Under: Deals & Offers //

Mint Mobile Bundle Discount: iPhone SE $15/Month, Service $15/Month

Posted on April 24, 2020 // 4 Comments

Mint Mobile has a new iPhone SE bundle promotion where you can get the new iPhone SE 2020 for $15/month + their $15/month cell service = $30/month total. You save $40 off the iPhone SE price and you lock in their bulk discount on data plans. Details below.

Apple’s new $400 iPhone SE may be called a “budget” phone, but I prefer to think of it as a “parts bin” phone that saves money not by using cheaper, low-quality ingredients, but instead by RE-using high-quality parts from other iPhones. Check out the review from your favorite tech site, but here’s a short take:

  • Screen/Body: iPhone 8. Same size as iPhone 6/7/8. Retina 4.7″ screen. Touch ID (no Face ID).
  • Latest CPU: iPhone 11 Pro. Same A13 Bionic chip as inside the current iPhone 11 Pro that costs $1,000. These fast internals mean this phone won’t be obsolete for 4+ years.
  • Camera: iPhone XR+. The hardware specs are like the iPhone XR which still costs $600 today. However, combined with the faster internals, Apple added software improvements to make it take better photos (portrait mode, etc). The camera is still significantly better than iPhone 6/7/8.

If you’re okay with the older body style (might be what you already have), this phone is a great value at $400 (64 GB).

$15/month for unlimited talk, text, and 3 GB of LTE data. We are in our second year of using Mint Mobile for cell phone service, an MVNO which runs on the T-Mobile network. One of us is on the $15 a month plan ($180 a year) for unlimited talk, text, and 3 GB of LTE data. The other pays $20 a month for unlimited talk, text, and 8 GB of data. You lock in this discount by paying for a year upfront.

In response to COVID-19, Mint Mobile offered their existing customers unlimited data (via free data add-ons) since March and going through May 14th, 2020.

New 2020 iPhone SE for $15/month. Mint Mobile combines these two into a new iPhone SE bundle promotion where you can also get the iPhone SE for $15/month for two years when you agree to also buy two years of service. This works out to $360 total for the phone, a $40 discount on the $400 retail price. You also get the free year of Apple TV+ streaming service included with all new iPhones.

End result: iPhone SE and unlimited talk/text/3GB data service for $30 a month total. Quite the frugal minimalist combo. You could also upgrade to the 8 GB data plan for $35/month total. This offer is for new Mint customers, although existing Mint customers can get 0% financing on the iPhone SE for $16.66 a month (you don’t save the $40 over 2 years).

Filed Under: Deals & Offers, Frugal Living //

10 Free eBooks For World Book Day

Posted on April 21, 2020 // 2 Comments

Amazon is celebrating World Book Day 2020 by giving away 9 free Kindle books from around the world covering a variety of genres, from contemporary fiction to true crime to a children’s book. “Buy” them for free by Friday 4/24 and you can own them forever. This is different than the Amazon Prime or Kindle Unlimited lists, where you are only borrowing them while paying the subscription fee.

Barnes and Noble also has the Evie in the Jungle NOOK eBook free for World Book Day. This is on top of the 1000s of free NOOK books otherwise available for free (would say “forever” but all bets are off if BN goes bankrupt).

Grab them now and read later. You can read both Kindle and NOOK eBooks on your smartphone or tablet. In fact, phones are turning out to be my favorite way to read. I rarely use my Kindle device anymore. The convenience of being able to read and highlight text whenever you have a few free minutes outweighs everything else.

Filed Under: Deals & Offers //

Official IRS Tool to Check Status of Stimulus Check

Posted on April 16, 2020 // 3 Comments

The IRS has released an official tool to check the status of your stimulus check, otherwise known as Economic Impact Payment / Coronavirus Tax Relief. It seems like you can also add your bank account information for direct deposit if they don’t have it on file, definitely if you were not required to file a 2018 or 2019 tax return. Data is updated once every night. You may need information from your 2018/2019 tax return for identification purposes.

Filed Under: Deals & Offers, Taxes //

Free HBO: 500 Hours Free To Stream During April 2020

Posted on April 16, 2020 // 1 Comment

For the month of April, HBO is making 500 hours of programming available to stream for free (without ads) for a limited time on HBO Now and HBO Go services without a subscription. You can download the HBO Go or HBO Now apps for iOS and Android, and I was able to use the HBO app in my Smart TV without issue. Click on the link for the list of available shows (not everything is free). I wonder if I can finish “Big Little Lies” before the end of April.

For the month of April, watch some of HBO’s most beloved shows and documentaries, plus a selection of movies — entirely for free. Just head to HBO GO or HBO NOW or On Demand to watch every episode of series like The Sopranos, Veep and The Wire along with documentaries including McMillion$ and I Love You, Now Die and movies like Crazy. Stupid. Love. and Blinded by the Light, no subscription required. See the full list of available shows, documentaries and movies below.

Filed Under: Deals & Offers //
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