Kindle E-Readers: Prime Sale + American Express Discount = $9.99 Kindle?

Posted on September 19, 2018 // 6 Comments

Amazon is having two separate promotions on Kindle e-Readers that can stack together to result in a $10 Kindle. This was a great opportunity to upgrade from my ancient 2nd generation Kindle. First, all Amazon Prime members have the special Kindle prices below ($30 to $40 off):

Amazon Prime members who have also have a linked American Express card with Membership Rewards linked may be eligible for an additional $30 to $40 off discount:

Cardholders of an American Express card with Membership Rewards should also check again to see if they are eligible for this targeted $30 off any $60 purchase promotion when you use as little as 1 Membership Rewards point. You may even be able to get it a second time. The items must be shipped and sold by Amazon.

There have been some pretty solid American Express + Amazon offers recently. Here are my two favorite cards that earn Membership Rewards with no annual fee, one consumer and one business:

Filed Under: Deals & Offers //

Big List of Ways To Protect Your Identity: Free Credit Monitoring, Free Credit Locks, and Free Credit Freezes

Posted on September 16, 2018 // 24 Comments

eq_hack

Updated. After the Equifax hack and many subsequent hacks that affected so many Americans, there is renewed interest in the various ways you can monitor and/or protect your credit report. Below is a summary of the options available.

Free credit reports. Everyone should take advantage of the free copy of their credit reports (Equifax, Experian, TransUnion) and their bank report (ChexSystems, TeleCheck) available every 12 months. I would also add LexisNexis to the ones I personally check. This free access is mandated by the government. Here again is my Big List of Free Consumer Reports.

Free credit monitoring. There are many offers nowadays for free credit scores and partial snapshots of your credit report. These are provided by private services, either in partnership with or as a subsidiary of the major credit bureaus. In addition, some offer credit monitoring, where they will e-mail or text you when a significant change occurs (new accounts, etc). I choose to take advantage of this, knowing it is in exchange for some ads. Here’s a recipe for credit monitoring coverage across all three major bureaus:

Free credit locks. The credit bureaus now have a feature that allows you to instantly “lock” and “unlock” the credit report of a specific credit bureau and thus prevent access. These are nice because you can unlock it for a day or so when you need, but otherwise keep it locked. Again, if they are free, they are probably supported by ads and/or upgrades (which is fine by me, I just decline the occasional upsell and it stays free).

Free Fraud Alerts. If you are concerned that your personal information is compromised (you should be!), you can contact any one of the three major credit bureaus and ask for a “Fraud Alert” to be placed on your credit report. This supposedly lets all potential creditors know that you are at high risk and that they need to do extra identity verification. Be sure that they have your current contact information as they will call you every time someone tries to check your credit report.

(Update: I’ve had a Fraud Alert on my account for over 12 months now, and I have not seen any special precautions taken despite applying for multiple credit cards during that time. No verification phone calls, no snail mail letters, etc. I wouldn’t depend on a Fraud Alert to stop any criminal activities.)

This is free of charge. It will expire automatically after 1 year but you can call in and renew by submitting a new request within 30 days of your current alert expiring. If you are a documented victim of identity theft, you can ask for an Extended Fraud Alert of up to 7 years. By law, you should only need to contact one of them, and they are supposed to contact the other two companies and thus have the Fraud Alert active on all three accounts. Taken from FTC.gov:

Credit Freezes. This is the most comprehensive measure to take. Once you initiate a credit freeze, it will stay on there permanently in most states (or at least 7 years in others). In order for a business to check your credit report, you must manually “unfreeze” your credit temporarily. As of 9/21/18, this should be free by law at all three credit bureaus. You must contact each credit bureau separately.

In addition, the same law requires that free credit freezes also be made available for children under 16 years old. (I would warn folks that you have to send in multiple sensitive personal documents like birth certificate and possibly notarized forms to verify your kids’ identities. Makes sense but a lot of work.)

I decided to initiate a free 90-Day Fraud Alert to try it out (through Equifax since they should do the extra work).

eqalert_sample

I already access my credit reports/ChexSystems/LexisNexis every 12 months, and I continuously monitor my own credit using the services listed above. Here’s a sample free alert I got from CreditKarma:

ck_sample

I then cross-referenced with a similar free credit monitoring alert from CreditSesame (TransUnion) that included more info like date and card issuer:

cs_sample

Bottom line. That’s the menu; I would start at the top and pick what works for you. I tend to open a relatively high number of credit and bank accounts throughout the year, often for a time-senstive promotion, so I choose to decline the extra hassle and cost that comes with a credit freeze. I use the free monitoring services listed above instead to get an e-mail whenever a new credit check occurs or a new line of credit is reported. If you rarely get new accounts or simply feel otherwise, go more extreme.

Filed Under: Credit Cards, Deals & Offers //

Best Interest Rates on Cash – September 2018

Posted on September 4, 2018 // 26 Comments

This is my monthly roundup of the best interest rates on cash, roughly sorted from shortest to longest maturities. Check out my Ultimate Rate-Chaser Calculator to get an idea of how much additional interest you’d earn if you are moving money between accounts. Rates listed are available to everyone nationwide. Rates checked as of 9/4/18.

High-yield savings accounts
While the huge megabanks like to get away with 0.01% APY, getting higher rates is as easy as transferring some money electronically from your checking account to an online savings account. Keep in mind that the interest rates on savings accounts can drop at any time, so consider prioritizing banks with a history of competitive rates.

  • CIT Bank Money Market offers 1.85% APY with no minimum balance ($100 to open), no max balance cap. Redneck Bank offers 2.00% APY on a maximum balance of $50k. Several other established high-yield savings accounts are in this close range.
  • In terms of newcomers, Customers Bank offers 2.25% APY guaranteed until 6/30/19, but with a minimum balance of $25k+. Northfield Bank has a Platinum Savings Online (not their regular Platinum Savings) at 2.25% APY up to $100k, but there is an $8 monthly fee if under $2,500.
  • My “hub” bank account is the Ally Bank Savings + Checking combo due to their history of competitive rates, 1-day external bank transfers, and overall ease of use. The free overdraft transfers from savings allows to me to keep my checking balance at a minimum. Ally Savings is currently at 1.85% APY. From here, I open “spoke” accounts and CDs to lock in higher rates.

Money market mutual funds + Ultra-short bond ETFs
If you like to keep cash in a brokerage account, you should know that money market and short-term Treasury rates have been rising. The following money market and ultra-short bond funds are not FDIC-insured, but may be a good option if you have idle cash and cheap/free commissions.

  • Vanguard Prime Money Market Fund currently pays an 2.08% SEC yield. The default sweep option is the Vanguard Federal Money Market Fund, which has an SEC yield of 1.93%. 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 2.42% SEC Yield ($3,000 min) and 2.52% SEC Yield ($50,000 min). The average duration is ~1 year.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 2.42% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 2.54% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

Short-term guaranteed rates (1 year and under)
I am often asked what to do with a big wad 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. If not a savings account, then put it in a flexible short-term CD under the FDIC limits until you have a plan.

  • USALLIANCE Financial Credit Union has a 1-year CD at 2.75% 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). CIT Bank 1-year CD is at 2.50% APY ($1,000 minimum) with an early withdrawal penalty of 3 months interest.
  • For more flexibility, the Ally Bank 11-month No Penalty CD is at 2.00% APY ($25k minimum) and the CIT Bank 11-Month No-Penalty CD is at 1.85% APY with a lower $1,000 minimum. The lack of early withdrawal penalty means that your interest rate can never go down for 11 months, but you keep full liquidity. You can open multiple CDs in smaller $1,000 increments to get even more flexibility.

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 2018 and October 2018 will earn a 2.52% 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 2018, 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.

  • The only notable card left in this category is Mango Money at 6% APY on up to $5,000, but there are many hoops to jump through. There is a $3 monthly fee and you need to maintain a minimum $800 net direct deposit each month. This means you can’t direct deposit $800 and also take out $800 via online transfer. Checks and ATM withdrawals have additional fees. The only thing left is to spend the money via the Visa debit feature (and miss out on flat 2% cash back on all purchases).

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. That’s just how it goes with these types of accounts.

  • Consumers Credit Union recently announced changes starting 10/1/18, including lower balance limits ($10k down from $20k) and more restrictive requirements, but also higher interest rates in some tiers. Free Rewards Checking now offers 3.09% to 5.09% APY on up to a $10k balance depending on your qualifying activity. The highest tier requires their credit card in addition to their debit card (other credit cards offer $500+ in sign-up bonuses). Keep your 12 debit purchases just above the $100 requirement, as for every $500 in monthly purchases you may be losing out on 2% cash back elsewhere (or $10 a month after-tax). Thanks to reader Jonathan for the heads up. Find a local rewards checking account at DepositAccounts.

Certificates of deposit (greater than 1 year)
You might have larger balances, either because you are using CDs instead of bonds or you simply want a large cash reserves. 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 such that you have access to part of the ladder each year, but your blended interest rate is higher than a savings account.

  • Synchrony Bank has a special 13-month CD at 2.65% APY ($2,000 min). Note that the early withdrawal penalty is relatively big at 6 months of interest. NASA Federal Credit Union has a special 15-month Share Certificate at 3.25% APY ($5,000 min, EWP 6 months). 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.
  • Ally Bank has a 5-year CD at 3.00% APY ($25k minimum) with a relatively short 150-day early withdrawal penalty. For example, if you closed this CD after 2 years you’d still get a 2.39% effective APY even after accounting for the penalty. (2.61% at 3 years.)
  • United States Senate Federal Credit Union has a 5-year Share Certificate at 3.53% APY ($60k min), 3.47% APY ($20k min), or 3.41% APY ($1k min). Note that the early withdrawal penalty is a full year of interest. Anyone can join this credit union via American Consumer Council.
  • You can buy certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable fixed early withdrawal penalties. As of this writing, Vanguard is showing a 3-year non-callable CD at 3.00% APY and a 5-year non-callable CD at 3.35% APY. Watch out for 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 fixed early withdrawal penalties. As of this writing, Vanguard is showing a 10-year non-callable CD at 3.45% APY. Watch out for higher rates from callable CDs from Fidelity. Matching the overall yield curve, current CD rates do not rise much higher as you extend beyond a 5-year maturity.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a 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 long-term bond and thus a hedge against deflation, but only if you can hold on for 20 years.

All rates were checked as of 9/4/18.

Filed Under: Banking, Deals & Offers //

Ally Invest Commission-Free ETF List Review (+ New Account Cash Bonus)

Posted on August 28, 2018 // 1 Comment

Ally Invest (formerly TradeKing) has rolled out their own commission-free ETF list to augment their $4.95 trades and no account minimums. As an existing customer, they sent a short e-mail with the following paragraph:

We’re excited to announce that you can now trade some of our most popular ETFs commission free. We made sure to handpick a variety of funds that may fit your investment style, whatever that may be. They’re a great way to diversify and another way we strive to be a better ally.

You can view the complete list of 100+ ETFs here. I see three major categories:

  • WisdomTree “Smart Beta” ETFs (all of them)
  • iShares Sector and ESG ETFs
  • 6 iShares Core ETFs

Low-cost index ETFs. Here are their lowest-cost ETFs across the major asset classes. There are enough iShares Core ETFs to build a simple, low-cost portfolio with no commissions. I might have wished to see IEMG instead of ESGE or some more bond options, but otherwise these are not bad for portfolio building blocks.

  • iShares Core S&P Total U.S. Stock Market ETF (ITOT) 0.03% ER
  • iShares Core MSCI International Developed Markets ETF (IDEV) 0.05% ER
  • iShares MSCI EM ESG Optimized (ESGE) 0.25% ER
  • iShares Core U.S. REIT ETF (USRT) 0.08% ER
  • iShares Core 1-5 Year USD Bond ETF (ISTB) 0.06% ER
  • iShares Core 10+ Year USD Bond ETF (ILTB) 0.06% ER
  • iShares Core 5-10 Year USD Bond ETF (IMTB) 0.06% ER
  • iShares National Muni Bond ETF (MUB) 0.07% ER

This list is certainly not as “all-inclusive” as compared to the just-announced Firstrade free trades program but it is still a positive move, especially for those that already have an Ally Invest account and don’t want to move assets. You may also have an Ally bank account and want to keep things together.

Commission-free ETF rules. There is a minimum holding period of 30 calendar days for commission-free ETFs, otherwise you will be charged a short-term trading fee of $9.90. This is equal to their normal trade commissions ($4.95 buy + $4.95 sell = $9.90). Commission-free ETFs will also not be margin-eligible for 30 days from the purchase date.

New account bonuses of $50 to $3,500. Ally Invest is still running their new account promotions of up to $3,500 cash bonus + 90 days of free trades. Here’s the chart, the bonuses start at a $10,000 transfer or deposit.

Up to $150 transfer fee credit. If you’re already trading somewhere else, Ally Invest will reimburse up to $150 in ACAT transfer fees if you make a one-time transfer of $2,500 or more.

These promotions are stackable, so for example if you had $25,000 at E*Trade, you could move your existing holdings over (without having to sell anything) and get a $200 bonus while also having Ally Invest cover the transfer fee. You’d then have 90 days of commission-free trades to sell and buy as you wish.

Finally, I noticed that Ally Invest has a new “Select” tier where you get cheaper $3.95 trades and $0.50 options contracts when you maintain an average balance of $100,000 (or average 30 trades per month) for the past rolling 3 months.

Bottom line. Ally Invest has added a commission-free ETF list, which includes a few popular low-cost iShares Core ETFs, several iShares Sector/ESG ETFs, and every single WisdomTree ETF (“Smart Beta”). This is a continuing trend amongst online brokers. Ally Invest also has new account cash bonuses from $50 to $3,500.

Filed Under: Deals & Offers, Investing //

Best Interest Rates on Cash – August 2018

Posted on August 5, 2018 // 20 Comments

Here is my monthly roundup of the best safe rates available, roughly sorted from shortest to longest maturities. Check out my Ultimate Rate-Chaser Calculator to get an idea of how much additional interest you’d earn if you are moving money between accounts. Rates listed are available to everyone nationwide. Rates checked as of 8/4/18.

High-yield savings accounts
While the huge brick-and-mortar banks like to get away with 0.01% APY, there are a number of online savings accounts offering much higher rates. Keep in mind that with savings accounts, the interest rates can change at any time.

  • CIT Bank Money Market offers 1.85% APY with no minimum balance ($100 to open) and no max balance cap. Several others have similar rates (see interactive tool below). Customers Bank offers 2.25% APY guaranteed until 6/30/19, but with a minimum balance of $25k+. On the flip side, Redneck Bank offers 2.00% APY but on a maximum balance of $50k.
  • My “hub” bank account is the Ally Bank Savings + Checking combo due to their history of competitive savings/CD rates, 1-day external bank transfers, and overall user experience. The free overdraft transfers from savings allows to me to keep my checking balance at a minimum. Ally Savings is currently at 1.80% APY. From here, I open “spoke” accounts and CDs to lock in higher rates.

Money market mutual funds + Ultra-short bond ETFs
If you like to keep cash in a brokerage account, you should know that money market and short-term Treasury rates have been rising. The following money market and ultra-short bond funds are not FDIC-insured, but may be a good option if you have idle cash and cheap/free commissions.

  • Vanguard Prime Money Market Fund currently pays an 2.06% SEC yield. The default sweep option is the Vanguard Federal Money Market Fund, which has an SEC yield of 1.87%. 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 2.44% SEC Yield ($3,000 min) and 2.54% SEC Yield ($50,000 min). The average duration is ~1 year.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 2.45% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 2.47% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

Short-term guaranteed rates (1 year and under)
I am often asked what to do with a big wad 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. If not a savings account, then put it in a flexible short-term CD under the FDIC limits until you have a plan.

  • United Texas Bank has a 1-year CD at 2.80% APY. CIT Bank 1-year CD is at 2.50% APY ($1,000 minimum). Early withdrawal penalty is 3-months of interest. For more flexibility, the Ally Bank 11-month No Penalty CD is at 2.00% APY ($25k minimum) and the CIT Bank 11-Month No-Penalty CD is at 1.85% APY with a lower $1,000 minimum. The lack of early withdrawal penalty means that your interest rate can never go down for 11 months, but you keep full liquidity. You can open multiple CDs in smaller $1,000 increments to get even more flexibility.
  • Several other banks now have 12-month CDs at 2% APY and above. Watch the early withdrawal penalties. For example, Synchrony Bank has a 2.45% APY 12-month CD, but the early withdrawal penalty is 90 days of interest. Meanwhile, Ally Bank has a 12-month CD at 2.40% APY with $25k+ deposit (2.25% APY for $5k+) and early withdrawal penalty of 60 days interest.

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 2018 and October 2018 will earn a 2.52% 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 2018, 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.

  • The only notable card left in this category is Mango Money at 6% APY on up to $5,000, but there are many hoops to jump through. There is a $3 monthly fee and you need to maintain a minimum $800 net direct deposit each month. This means you can’t direct deposit $800 and also take out $800 via online transfer. Checks and ATM withdrawals have additional fees. The only thing left is to spend the money via the Visa debit feature (and miss out on 2% or similar credit card rewards).

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. That’s just how it goes with these types of accounts.

  • Consumers Credit Union offers up to 4.59% APY on up to a $20k balance, although getting 3.09% APY on a $10k balance has a much shorter list of requirements. The 4.59% APY requires you to apply for a credit card through them (other credit cards offer $500+ in sign-up bonuses). Keep your 12 debit purchases small as well, as for every $500 in monthly purchases you may be losing out on 2% cashback (or $10 a month after-tax). Find a local rewards checking account at DepositAccounts.

Certificates of deposit (greater than 1 year)
You might have larger balances, either because you are using CDs instead of bonds or you simply want a large cash reserves. 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 such that you have access to part of the ladder each year, but your blended interest rate is higher than a savings account.

  • Ally Bank has a 5-year CD at 3.00% APY ($25k minimum) with a relatively short 150-day early withdrawal penalty. For example, if you closed this CD after 2 years you’d still get a 2.39% effective APY even after accounting for the penalty. (2.61% at 3 years.)
  • Connexus Credit Union is offering a 1-year Share Certificate at 2.50% APY (90-day early withdrawal penalty), a 3-year Share Certificate (180-day early withdrawal penalty) at 2.75% APY, and a 5-year Share Certificate (365-day early withdrawal penalty) at 3.25% APY. All have a $5,000 minimum deposit. Anyone can join this credit union via partner organization Connexus Association for a one-time $5 fee.
  • You can buy certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable fixed early withdrawal penalties. As of this writing, Vanguard is showing a 3-year non-callable CD at 3.00% APY and a 5-year non-callable CD at 3.30% APY from a few banks including American Express and Citibank. Watch out for 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 fixed early withdrawal penalties. As of this writing, Vanguard is showing a 10-year non-callable CD at 3.45% APY. Watch out for higher rates from callable CDs from Fidelity. Matching the overall yield curve, current CD rates do not rise much higher as you extend beyond a 5-year maturity.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a 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 long-term bond and thus a hedge against deflation, but only if you can hold on for 20 years.

All rates were checked as of 8/4/18.

Interactive rate table. Above, I work to curate only the banks with top nationwide rates. I don’t include every bank. Below is an interactive widget that lets you filter by account type (savings, CD term) and deposit amount. I don’t control the results, but it can be useful for comparison purposes to see other competitive rates. Disclosure: If you end up opening a new account using this widget, I may receive a commission.



Filed Under: Banking, Deals & Offers //

Fidelity Investments: Zero Expense Ratio Index Funds, Zero Account Fees

Posted on August 1, 2018 // 23 Comments

Fidelity Investments announced a bunch of “zero”-themed price and fee cuts across nearly all of their products:

  • Zero expense ratio mutual funds (two new Fidelity ZERO Index Funds)
  • Zero account minimums, zero account fees, zero domestic money movement fees
  • Zero investment minimums on Fidelity retail and advisor mutual funds and 529 plans
  • Lower expense ratios on many existing Fidelity index mutual funds

Fidelity ZERO Total Market Index Fund and (FZROX) and Fidelity ZERO International Index Fund (FZILX). These have zero expense ratio. Not nearly zero like 0.03%, but 0.00%. This was made possible partially because Fidelity is “self-indexing” and not paying any licensing fees to a 3rd party provider like the S&P 500.

  • Fidelity ZERO Total Market Index Fund and (FZROX) tracks the total US stock market, and is supposed to be comparable to the Vanguard Total Stock Market Index Fund (VTSMX) and the Schwab Total Stock Market Index Fund (SWTSX).
  • Fidelity ZERO International Index Fund (FZILX) tracks the total international stock market including foreign developed and emerging stocks. It’s supposed to compare with the Vanguard FTSE All- World, Ex-U.S. Index Fund (VFWIX) and Schwab International Index Fund (SWISX). I like that FZILX includes emerging markets. VFWIX does too, but SWISX does not include emerging markets.

More info on Fidelity index funds.

Zero minimums, zero account fees, domestic money movement fees. There is now no minimum amount required to open an account, buy a mutual fund, or maintain any account at Fidelity. Some of the account fees are nice to see gone as I have been dinged by them from other brokerages. For example: account transfer out fee, IRA closure fee, domestic bank wire fee.

Zero investment minimums. If you want to put $5 in a mutual fund, now you can. They want to get rid of all barriers to entry.

Notably, their trade commissions are holding steady at $4.95 a trade. They still have $0 commissions on select iShares and Fidelity ETFs.

Access to lowest-price share class. Although it didn’t fit neatly into their “zero” theme, another big move was that now all investors will get the lowest priced share class available. In the past, if you only put in $5,000 you might pay one price, and if you had $1,000,000 then you’d get a lower price. Vanguard still does this with their Investor and Admiral share classes. Now, everyone will get the lowest price regardless. Fidelity says the average asset-weighted annual expense across Fidelity’s stock and bond index funds will decrease by 35%, with expense ratios as low as 0.015%.

Bottom line. Fidelity just announced a big round of price cuts that basically shout “We’re cheap too!!” They added two new index funds with zero expense ratios, and they got rid of nearly all their account fees and minimum investments. This comes after Vanguard’s “all ETFs trade free with us” announcement and Schwab’s streak of “we have cheap ETFs” TV commercials.

Filed Under: Deals & Offers, Investing //

Atom Movie Tickets Promo Code: Buy One Get One Free

Posted on July 31, 2018 // Leave a Comment

Atom is a “social movie ticketing” app and website. Sign up and enter the promo code WEGOTYOU in the mobile app checkout to get two tickets for the price of one (“Buy 1 Get 1 Free”). US only. Offer valid from July 31, 2018 (8:00 am PT) through August 5, 2018 (11:59 pm PT), while supplies last.

I don’t know if this counts as 1 or 2 tickets with their “Watch 4, Get 1 Free” rewards system. It would seem like it would count as two according this FAQ text:

Discounted orders count towards earning a Free Reward Ticket, but orders containing only free movie tickets do not apply. Concessions purchases do not count towards earning a Free Reward Ticket.

Finally, if you tweet them a photo of your cut-up MoviePass card, you’ll be entered in a sweepstakes for 365 free movies. (I don’t like these contests where the taxable value of the prize is so much higher than the actual value I could get out of it.) Gee, who would’ve guessed that MoviePass would run out of money?…

Filed Under: Deals & Offers //

American Airlines AAdvantage® Mile Up® Card Review

Posted on July 30, 2018 // 2 Comments

The American Airlines AAdvantage® Mile Up® Card is the no annual fee co-branded American Airlines credit card. It replaces the former and not-very-publicized Citi/AAdvantage Bronze card and adds a few new features. Here are the card highlights:

  • 10,000 bonus American Airlines miles plus a $50 statement credit after $500 in purchases within the first 3 months.
  • 2 AAdvantage® miles per $1 spent at grocery stores, including grocery delivery services
  • 2 AAdvantage® miles per $1 spent on eligible American Airlines purchases
  • 1 AAdvantage® mile per $1 spent on other purchases
  • Earn 1 Loyalty Point for every 1 eligible AAdvantage(R) mile earned from purchases.
  • Save 25% on inflight food and beverage purchases when you use your card on American Airlines flights.
  • No annual fee.

I view this is a niche card for those that want to earn American Airlines, but don’t fly or spend enough to justify the annual fee of the other cards. Some folks just aren’t willing to pay an annual fee, no matter how good the perks are.

Bonus details. If you find the spending requirement too high on many cards, note that this one only requires $500 in purchases to earn the account opening bonus. Note the following language:

Statement credit and American Airlines AAdvantage® bonus miles are not available if you have received a statement credit or American Airlines AAdvantage® bonus miles for a new AAdvantage MileUpSM account in the past 48 months.

This means that yes, you can still get the bonus on this card if you’ve had another co-branded American Airlines card from Citi in the last 24 months like the Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard or the CitiBusiness® version designed for businesses.

No waived baggage fees. As you might expect, being the no annual fee version also means less perks. Notably, this card does not include any baggage fee waivers, which was a big potential source of savings from the other cards mentioned above (with annual fees). Also missing are priority boarding and the ability to book discounted award tickets (“Reduced Mileage Awards”).

Redemption tips. American Airlines MileSAAver awards are still 25,000 miles for a round-trip ticket within the contiguous 48 states. Their online system is pretty good for looking for domestic AA awards. If the trip is less than 500 miles, then it is only 15,000 miles round-trip within the contiguous 48 states. Under-500 miles routes include Las Vegas to/from Los Angeles, Charleston to/from Miami, New York to/from Washington DC, Philadelphia to Boston, and many others.

Bottom-line.  The American Airlines AAdvantage® Mile Up® Card is the no annual fee credit card from Citi and American Airlines. This card is a good fit for folks that don’t want to pay an annual fee for extra features, but still want to earn American miles on purchases (and keep their miles from expiring from inactivity). As such, you may consider “downgrading” your other Citi/American cards to this card if you stop wanting to pay the annual fee. Note that if you downgrade you don’t get the sign-up bonus, and getting the bonus from this card is independent of the bonuses from other Citi/American cards anyway.

Filed Under: Credit Cards, Deals & Offers //

LastPass Premium Discount: 12-Month Subscription for $6

Posted on July 26, 2018 // 15 Comments

lastpass0If your password manager of choice is Lastpass, right now HumbleBundle is selling a 12-month subscription of LastPass Premium for $6. (You do have a password manager, right?) This works out to $0.50 a month as opposed to the regular price of $2/month. According to SD, the keys are redeemable for both new and existing customers, and you can even buy two codes to stack (per payment type) for multiple years. I am not sure of the exact differences between Free and Premium, as Lastpass seems to hide those in order to push Premium. I am a 1Password user, which is $3 to $5 per month for cloud users.

Deal ends July 30th. Codes redeemable until September 1, 2018. 12 months subscription starts from the date of activation.

Filed Under: Deals & Offers //

Citi® / AAdvantage® Executive World Elite Mastercard® Review: 50,000 Bonus Miles

Posted on July 24, 2018 // Leave a Comment

The Citi® / AAdvantage® Executive World Elite Mastercard® is the premium American Airlines co-branded card that includes Admirals Club lounge access and the ability to earn Elite Qualifying Miles if you spend enough on the card. Here are the full details.

  • Earn 50,000 American Airlines AAdvantage(R) bonus miles after making $5,000 in purchases in the first 3 months of account opening
  • Admirals Club(R) membership for you and access for up to two guests or immediate family members traveling with you.
  • First checked bag is free on domestic American Airlines itineraries for you and up to 8 companions traveling with you on the same reservation
  • Priority check-in, airport screening (where available) and early boarding when flying American Airlines.
  • Earn 10,000 additional Loyalty Points after you spend $40,000 in purchases during the qualifying status year.
  • No Foreign Transaction Fees on purchases.
  • Up to $100 statement credit every 5 years, as reimbursement for your application fee for Global Entry or The TSA PreCheck®.
  • Earn 1 Loyalty Point for every 1 eligible AAdvantage(R) mile earned from purchases.
  • $450 annual fee.

Note the following fine print:

American Airlines AAdvantage® bonus miles are not available if you have received a new account bonus for a Citi® / AAdvantage® Executive account in the past 48 months. The card offer referenced in this communication is only available to individuals who reside in the United States and its territories, excluding Puerto Rico and U.S. Virgin Islands.

As mentioned, this is the highest level Citi/American Airlines card, designed to make the frequent American Airlines customer as comfortable as possible. The primary reasons for the higher $450 annual fee are the Admirals Club lounge membership and the opportunity to earn more Loyalty Points towards status.

Admirals Club lounge membership value and details. Admirals Club membership usually costs $550+ a year on its own, and this is now the only card that gives it to you as a complimentary feature. Here’s the full cost chart:

This membership allows both you and your immediate family (or up to two traveling guests that accompany you) to access over 50 Admirals Club locations worldwide. Your immediate family includes spouse, domestic partner and/or children under 18 years of age. You don’t even need to be on an American Airlines flight! You can even give your spouse or trusted friend/family an authorized user card and they’ll get lounge access too, even while traveling separately from you. (Authorized user cards have no additional fee.)

You can be flying on any airline, and if that airport has an Admirals Club you and your family can go inside. Lounge access might save you money on certain things like comfortable seats, free food/drink, WiFi, and sometimes hot showers. Mostly it just makes the overall flying experience more pleasant. I’ve been to Admiral’s Clubs with special kids rooms; perfect for families during delays or layovers.

Bottom line. Bonus miles are always nice, but this card is mostly about the Admiral Club lounge access and the help in achieving/maintaining elite status on American. If you don’t fly on American enough to value these perks, I would consider the Citi® AAdvantage® Platinum Select® World Elite Mastercard instead.

Filed Under: Credit Cards, Deals & Offers //

Amazon Prime Day 2018: Big List of Deals and Discounts

Posted on July 17, 2018 // 6 Comments

A few more hours… Amazon Prime Day 2018 is here. I’ll try to keep this post updated with the most recent offers (and remove the expired ones). There are usually many opportunities to save some money without buying stuff you don’t need (and thus offset a chunk of that membership fee). In fact, if you have any things you’ve been looking for on your Wish List, you should just look them up and see if they are on sale today.

As the name suggests, most deals require a Prime membership. New members can sign up for a 30-day free trial (6-month free trial + 50% off afterward with student .edu address).

Site-wide

Specific deals

Amazon Deals

Whole Foods Deals

Targeted deals

Filed Under: Deals & Offers //

Target $20 off $50+ Coupon, 15% Off Coupon Via Text

Posted on July 15, 2018 // 9 Comments

Expired: This offer is no longer available.

Target is offering a mobile coupon for $20 off a $50+ purchase. Simply text LKWKGK to TARGET (827438) and a special link and promo code will be texted back to you. Coupon will expire 10/31/18. Valid both in-stores and online. Found via Slickdeals. Exclusions apply:

Coupon offer excludes alcohol, Apple products, Bose, CVS clinic & pharmacy, dairy milk, DSLR cameras & lenses, Elf on the Shelf, gift cards, Google products, GoPro, LEGO, mobile contracts, prepaid cards, Sonos, Target Optical, Tylenol pain relief, and Weber.

You can also try texting the following codes to TARGET (827438) and get a 15% off coupon code. They might even stack…

  • ptwyy3
  • ptwxx3
  • Lkwgkg

Text STOP to 827438 to end.

Filed Under: Deals & Offers //
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