ScholarShare 529 College Savings Plan: $100 Bonus Per Accountholder/Beneficiary Combo

Posted on September 5, 2023 // 10 Comments

The ScholarShare 529 College Savings Plan is offering a $100 bonus when you open a new account by 9/30/23 and deposit $1,000+ within 10 business days of establishing the account. Your $100 matching deposit will arrive by 1/31/24. The ScholarShare 529 account must be open with a non-zero balance to receive the bonus.

Compared to all 529 plans nationwide, the ScholarShare 529 is a solid overall plan with reasonable costs (official plan of California, run by TIAA-CREF), making it a good option for those without specific in-state tax incentives. See here to compare 529 tax benefits across all 50 states.

I find that having an open 529 plan is a great way to redirect various gifts from friends and family (like grandparents) so that the money doesn’t just get spent mindlessly and then forgotten. If someone gives them a gift card, I just put the equivalent value into the 529 and spend the gift card myself. Since by the time they really understand money it will have been 10 years since birth, it can been a good lesson on how steady saving and investing adds up. Finally, opening a plan and making any contribution also starts the 15-year clock on potential future 529-to-Roth IRA rollovers.

This specific bonus is also interesting due to the limit of “one (1) Matching Deposit per new ScholarShare 529 account per unique accountholder/beneficiary combination.” That means a couple with three children could open six accounts for $600 in total bonuses. It would also require a significant upfront deposit, but many families are already setting aside $100+ each month per kid for future college expenses.

  • Spouse 1 + Child 1
  • Spouse 1 + Child 2
  • Spouse 1 + Child 3
  • Spouse 2 + Child 1
  • Spouse 2 + Child 2
  • Spouse 2 + Child 3

If you have multiple 529 accounts from different state plans/managers, know that you can later transfer the balances and merge them into each other, although there may be a modest amount of paperwork required each time. You are allowed one rollover per beneficiary during a rolling 12-month period.

From the full fine print:

Offer Description: The ScholarShare 529 College Savings Plan (“ScholarShare 529”) is a 529 college savings plan administered by the ScholarShare Investment Board (“SIB”), an instrumentality of the state of California, and managed by TIAA-CREF Tuition Financing, Inc. (“TFI”). To receive a $100 matching deposit (“the Matching Deposit”), eligible individuals must (a) open a new ScholarShare 529 account (for a new beneficiary) online at www.ScholarShare529.com between September 1, 2023 at 12:01 AM Pacific Time (PT) and September 30, 2023 at 8:59 PM PT with an initial deposit of at least $1,000 to be contributed and invested at the time the new ScholarShare 529 account is opened. The initial $1,000 deposit must be received within 10 business days after the account is established. The Matching Deposit will be made to the eligible ScholarShare 529 account on or before 8:59 PM PT on January 31, 2024. To receive the Matching Deposit, the ScholarShare 529 account must be open with a dollar balance greater than zero on the day the Matching Deposit is made. Limit: one (1) Matching Deposit per new ScholarShare 529 account per unique accountholder/beneficiary combination.

Filed Under: College & Education, Deals & Offers, Investing, Taxes //

Vanguard Cash Plus Account Review: FDIC-Insured, But Missing Useful Features

Posted on August 29, 2023 // 8 Comments

Vanguard has been piloting some new products recently, and I was finally invited to try out the Vanguard Cash Plus Account. I’ve been playing with it for a few days and here are my thoughts. First, it’s important to note that there are two separate FDIC-insured products available from Vanguard:

  • Vanguard Cash Deposit – This is a new option for the settlement fund (default cash sweep) in your brokerage account. The interest rate has historically been lower than Cash Plus. 3.70% APY as of 8/28/23. You can make immediate trades straight from the funds in this account. FDIC insurance up to $1.25 million ($2.5 million for joint accounts).
  • Vanguard Cash Plus Account – This is a separate FDIC-insured account with a historically higher interest rate that is not a settlement account. 4.70% APY as of 8/28/23. It is meant as an alternative to a bank savings account and allows incoming ACH direct deposits and ACH withdrawals. FDIC insurance up to $1.25 million ($2.5 million for joint accounts).

Invitation and opening process. I received a physical mailer with an invitation last week, but the application was all online. The invitations are sent to individuals, and if you want to open a joint account, the joint owner must also have a Vanguard brokerage account. The implication is that this product is meant for existing Vanguard brokerage customers only, not as a standalone product.

Features. This is not a full-featured account, but a pretty minimalist FDIC-insured savings account. No minimum balance, no monthly fees. You get a routing number and account number (routing number is 242071583 which turns out to be PNC Bank NA, their bank partner.

It’s important to note all that is not included:

  • No ATM or debit card. (No ATM rebates.)
  • No checkwriting. (I did find mobile check deposit on the app.)
  • No online bill payment service. (You can use your account number to link at your credit card’s website for example, but there is no in-house system.)
  • No automated recurring transfers.
  • No ability to use your money market fund as a backup overdraft source.

Historical note: For a while, Vanguard did offer an “Advantage” account to select customers which did include all these things, but they abruptly discontinued it in 2019. So Vanguard is definitely intentionally leaving all these features out.

Basically, you get to make ACH direct deposits and ACH withdrawals. This enables the direct deposit of paychecks, Social Security, pensions, PayPal/Venmo transfers, and pay bills through vendor websites.

You might think that since it is a Vanguard account, you could use the funds in Cash Plus directly to buy some Vanguard ETFs or mutual funds. Not quite. First, all accounts must be “like registered” for you to transfer from Cash Plus. I am not allowed to transfer to my trust accounts. Second, you must manually transfer the money over, and then it should be available the same day. I found this statement in one place:

A transfer from a Cash Plus Account into a Vanguard Brokerage Account will settle by the next business day, but will be available for trading immediately.

But a slightly different one on their public FAQ:

How long will it take to move my cash from one account to another?

Transfers (including from one Vanguard account to another) generally take 2–3 business days, but at times may be quicker.

The competition. This is a supplemental Vanguard account meant to add functionality for existing Vanguard customers. However, I must point out that Fidelity has included a much higher level of functionality for its customers for a long time.

The plain taxable Fidelity brokerage account will also provide you account and routing numbers so that you can perform ACH deposits and withdrawals. Their core options (settlement fund) also include an FDIC-insured option with lower interest rate, but you can use a money market mutual fund like SPAXX that currently has a 4.98% yield.

But Fidelity also includes a nice bill payment interface, ATM debit card, checkwriting (with free checks), and mobile check deposit all within their standard brokerage account. (Fidelity also includes domestic and international ATM rebates if you have at least $250k in total assets with them. The alternative Fidelity Cash Management Account does include ATM rebates with no minimum balance requirement, but takes a bit more work to manage the cash optimally by manually purchasing their money market funds. I’ll leave the details for another review.)

Basically, if you are the type to want an all-in-one banking solution, Fidelity has already been doing it for years and years with more features. I feel that Fidelity’s customer service is also much better than Vanguard’s.

The Cash Plus account appeals to a niche customer. You are a loyal Vanguard customer that wants the added functionality from a basic high-yield savings account with bank routing and account numbers. You want one that shows up when you log into Vanguard, so you don’t have to log into another bank. The interest rate is pretty good and should stay that way, but still lower than Vanguard’s own money market funds. Maybe you want that FDIC-insurance. Finally, you are satisfied with Vanguard’s level of customer service these days. In my experience, the differences in hold times between Vanguard and Fidelity is simply night and day.

Will I actually use it? Honestly, it’s kind of hard to get excited that Vanguard is offering a barebones FDIC-insured savings account like ING Direct in 2023. I’d love to see the Cash Plus APY as the standard settlement fund along with account/routing numbers. They could even add the other features like ATM debit cards, but I don’t think they can handle the customer service level required. Instead, we just get this little step forward.

Mostly, I don’t need the FDIC insurance as I have full faith in the Vanguard Federal Money Market Fund (VMFXX, 5.28% yield as of 8/28/23) and Vanguard Treasury Money Market Fund (VUSXX, 5.19% yield as of 8/28/23) which both offer much higher interest rates and partial state income tax deductions. These are perfectly acceptable as my “savings accounts”. Stay lean Vanguard, just take the customer service back to the acceptable levels you had before your huge growth.

For now, my plan is to simply keep my Cash Plus account open with minimal activity in case one day the APY is higher than the money market alternatives.

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

Johnson & Johnson / Kenvue Odd Lot Tender Arbitrage Deal (Results)

Posted on August 25, 2023 // 34 Comments

Update 8/24: Here are the final results of this odd lot tender. See original post below for past details, although the opportunity has passed. Per JNJSeparation.com, the final exchange ratio was 1 share JNJ to 8.0324 shares of KVUE. The deal was oversubscribed, with a final proration factor of ~23.2% of shares tendered. However, those with “odd lots” of 99 shares or less were not subject to proration, which created an opportunity for smaller individual investors.

Here are the stats:

  • 8/14 prices (closing), JNJ $173.44 and KVUE $22.94.
  • 99 shares of JNJ @$173.44 = $17,171 (8/14)
  • 8/24 prices (intraday), JNJ $165.36 and KVUE $23.32.
  • 99 shares of JNJ tendered = 795.20 shares of KVUE.
  • 795.20 shares of KVUE @$23.32 = $18,544 (8/24)

Net profit on 99 JNJ shares bought 8/14, tendered, and sold 8/24: ~$1,350. If you sold your resulting KVUE and immediately bought JNJ back again intraday on 8/24, you would end up with ~112 shares of JNJ.

For the curious, the current market caps are JNJ $430 billion and KVUE $44.5 billion. So if you wanted to keeping owning the “original” JNJ components in a weighted manner, that would be roughly 90% JNJ and %10 KVUE. (JNJ still owns about 9.5% of KVUE after this split-off.)

Original post 8/12:

Everyone knows Johnson & Johnson (JNJ), but fewer know that the huge company spun off its consumer health division (Tylenol, Band-Aid, etc) earlier in 2023 and called it Kenvue (KVUE). JNJ kept its pharmaceutical and medtech divisions, but also still owns about 90% of KVUE. Moving forward with the split-off, they are offering JNJ shareholders the option to tender roughly $100 of JNJ and get $107 of KVUE stock in return.

They are incentivizing JNJ shareholders to help them complete the split-off, and it’s a good deal, almost too good as it may be “oversubscribed” and tenders may be pro-rated. However, there is an “odd lot” provision in the deal, where if you only have 99 shares of less of JNJ and tender them all, you won’t be subject to pro-ration. This is a small corner where small individual investors can gain a small advantage that the bigger money can’t access.

Now, I’m not an expert on this stuff by any means, and there are risks involved. The following two articles and the official informational site explain the various details and risks in much better detail.

From the official site above that tracks the share prices for the exact tender ratio (upper limit not in effect at time of writing):

If the Exchange Offer is oversubscribed and Johnson & Johnson cannot accept all tenders of J&J Common Stock at the exchange ratio, then all shares of J&J Common Stock that are validly tendered will generally be accepted for exchange on a pro rata basis in proportion to the number of shares validly tendered, which is referred to as “proration.” Stockholders who beneficially own “odd-lots” (less than 100 shares) of J&J Common Stock and who validly tender all of their shares will not be subject to proration (other than participants who hold odd-lot shares as a participant in the Savings Plans).

To quickly summarize the potential deal:

  • Buy 99 shares* of JNJ at your broker, for an approximate cost of $17,000.
  • Tender *all* your shares through your broker . You can’t own 100+ shares and only tender 99. The deadline is supposed to be 8/18, but some brokers may require your tender instructions earlier than that. (At Fidelity it is 08/17 at 7pm ET.) I’d do it as soon as you can.
  • If all goes smoothly (not guaranteed by me), then you’ll get ~$18,200 of KVUE approximately 7 business days after the deadline. You can sell the shares for cash if you want to realize a potential profit of ~$1,200. You may get a little less depending on the relative share prices of JNJ and KVUE.
  • * You can buy less than 99 shares for less financial commitment (and less upside), but you have to tender them all.

This is the type of deal that I find both interesting and educational, on top of having a positive expected value. Warren Buffett today wouldn’t bother with this deal, but Warren Buffett age 14 might. This is more of a calculated gamble, rather than a fixed return. There is risk involved, including either the deal being canceled somehow (you keep 99 shares of JNJ) or the limit ratio being reached and you get less than 7.5% premium of KVUE. You should perform your own due diligence.

Filed Under: Deals & Offers, Investing //

Wallet by BOSS Money $100 Referral Bonus + 3.75% APY Checking/Savings

Posted on August 23, 2023 // 3 Comments

A new banking app called Wallet by BOSS Money is offering a $100 bonus via referral link (open link via smartphone, that’s mine). You need to set up direct deposits totaling at least $5,000 within 45 days. No minimum hold period. App only (iOS and Android). The referrer gets the same amount. I know that this is a relatively high requirement, and I’m hoping a brokerage transfer of my investment income will satisfy it, but definitely not guaranteed.

There is no minimum hold period and the terms state “Rewards are generally deposited within 14 (fourteen) business days after criteria are met.” Therefore, remember that you don’t actually have to keep the $5,000 in the account. You just need it to show up, and after that you can remove it whenever. You are also earning 3.75% APY in the few days in between as opposed to zero in some cases. (Worst case math: Even if you get $100 + 3.75% APY on $5,000 held for 45 days, that’s the equivalent of nearly 20% annualized return (16% + 3.75%). But I don’t plan on keeping the $5k there.)

Good news is the account opening process was very quick and easy, under 5 minutes, and did not require a hard credit check. So the upfront time commitment can be low. Have your photo ID and a good location with dark background and no glare ready, as the app will ask to take a live picture of your photo ID (and a selfie photo) as part of the application process. I passed without issue and did not have to upload any extra documentation. The account was open and ready less than an hour after application. FDIC insurance through Evolve Bank and Trust (routing number 084106768).

The stated mission of BOSS Money is to “provide accessible, affordable, and secure banking services to everyone, including underserved and unbanked communities.” As such, they do not require a Social Security Number (SSN) or Individual Taxpayer Identification Number (ITIN).

In the US, 22% of adults are either unbanked or underbanked, lacking access to basic financial services like checking or savings accounts. This disproportionately impacts underserved minority communities, including immigrants, independent contractors, freelancers, on-demand workers, and college students. These communities are often excluded from traditional financial systems, leaving them without the tools and resources they need to achieve financial wellness and stability.

Here are the highlights:

  • 3.75% APY on both Checking and Savings accounts.
  • No minimum balance, no monthly fees (even without direct deposit).
  • No credit check.
  • Load cash to your Wallet by BOSS Money account at over 90,000 locations nationwide, including popular retailers like 7-Eleven, CVS, Walgreens, Walmart.
  • Get $2 cashback in your Wallet account when you send money using the Wallet Mastercard® in either the BOSS Money or BOSS Revolution apps.

Here are the full promo terms. If you direct deposit between $500 – $4,999.99, you’ll get $25. Hat tip to Doctor of Credit.

Refer a Friend, Get up to $100 in Wallet Account
Invite Friends to Join Wallet by BOSS Money:

Referral Rewards:
For Direct Deposits between $500 – $4,999.99: You both receive $25.
For Direct Deposits of $5,000 or more: You both receive $100.
Preferred Direct Deposit Method: We recommend connecting with your employer in the app using Argyle, a two-minute process.
Exclusions: Bank ACH transfers, Wallet transfers, verification or trial deposits from financial institutions, peer-to-peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, and cash loads or deposits are not considered qualifying direct deposits.
Reward Timeline: Rewards are generally deposited within 14 (fourteen) business days after criteria are met.
Referral Cap: Referrers may earn no more than $500 in monetary referral rewards per calendar year.
Account Standing: The Referrer’s account must be in good standing to receive the referral reward.
Amendments and Termination: Wallet by BOSS Money may modify or terminate these terms at any time without prior notice.

Another drop in my 2023 IRA challenge bucket.

Filed Under: Banking, Deals & Offers //

American Express® Green Card Review: 40,000 Points Welcome Offer

Posted on August 18, 2023 // 1 Comment

The American Express(R) Green Card is one of AmEx’s classic cards, and they have revamped the rewards structure and added new travel perks. There is also a welcome offer for new cardholders. Here the the highlights:

  • Earn 40,000 Membership Rewards(R) Points after you spend $3,000 on purchases on your new Card in your first 6 months of Card Membership.
  • Earn 3X Membership Rewards(R) points on travel including airfare, hotels, cruises, tours, car rentals, campgrounds, and vacation rentals.
  • Earn 3X Membership Rewards(R) Points on transit purchases including trains, taxicabs, rideshare services, ferries, tolls, parking, buses, and subways.
  • Earn 3X Membership Rewards(R) points on eligible purchases at restaurants worldwide, including takeout and delivery in the US.
  • $189 CLEAR Plus Credit: Receive up to $189 per calendar year in statement credits when you pay for your CLEAR Plus membership (subject to auto-renewal) with the American Express(R) Green Card.
  • $100 LoungeBuddy Credit: No airport lounge membership? No problem! Purchase lounge access through the LoungeBuddy app using the American Express(R) Green Card and receive up to $100 in statement credits annually.
  • Trip Delay Insurance: If a round-trip is paid for entirely with your Eligible Card and a covered reason delays your trip more than 12 hours, Trip Delay Insurance can help reimburse certain additional expenses purchased on the same Eligible Card, up to $300 per trip, maximum 2 claims per eligible account per 12 consecutive month period. Terms, conditions and limitations apply. Coverage is provided by New Hampshire Insurance Company, an AIG Company.
  • No Foreign Transaction Fees.
  • $150 annual fee. (card_name)

Note the following language:

You may not be eligible to receive a welcome offer if you have or have had this Card or previous versions of this Card. You also may not be eligible to receive a welcome offer based on various factors, such as your history with credit card balance transfers, your history as an American Express Card Member, the number of credit cards that you have opened and closed and other factors. If you are not eligible for a welcome offer, we will notify you prior to processing your application so you have the option to withdraw your application.

This card has not been heavily marketed in the past, so many people (including myself) are still eligible for the welcome offer. The application will tell you if they detect that you are not eligible for the bonus based on their records. Given that you can only get the welcome offer once time per lifetime, it is best to apply during a limited-time offer. (Update: I was approved for this card without issue.)

Membership Rewards points can be converted to the following airline and hotel programs (there are more, this is just a selection):

  • Delta SkyMiles
  • Hawaiian Airlines
  • JetBlue
  • ANA Mileage Club (partner of United Airlines)
  • Air Canada (partner of United Airlines)
  • British Airways (partner of American Airlines)
  • FlyingBlue (Air France/KLM)
  • Singapore Airlines
  • Cathay Pacific
  • Emirates
  • Etihad Guest
  • Qantas
  • Virgin Atlantic
  • Choice Privileges
  • Hilton Honors
  • Marriott Bonvoy

They also run limited-time 25% to 40% bonuses on points transfers. You can also transfer to gift cards many retailers at varying rates, but many available at the rate of 10,000 MR points = $100 gift card. My most recent redemption was a $100 Home Depot card for 10,000 points, sometimes less when they run special discount. However, don’t expect the cash-equivalent prepaid credit cards at that rate, it’s usually closer to a 0.6 cent/point ratio.

40,000 Membership Rewards points, worth an estimated $400. Some folks value these points much more highly, but I prefer to stick to a simple and conservative 1 cent per point.

CLEAR Plus membership gets you through airport security significantly faster at 50+ airports nationwide via designated lanes at TSA checkpoints. (CLEAR offers separate and short ID check lines, getting you to the x-ray machines faster. But you should also have TSA PreCheck for optimal speed.) If you value this service, then the recurring $189 value can offset the $150 annual fee at renewal time.

Compared with its siblings at American Express, this card has a tighter focus on frequent fliers (3X on travel, CLEAR Plus membership) and the lowest annual fee:

Bottom line. The American Express(R) Green Card is a premium travel card with a welcome offer, revamped 3X rewards categories, and new travel perks. You’ll have to see if your travel habits match up to the perks that this card offers. (card_name)

Also see: Top 10 Best Credit Card Bonus Offers.

All information about the American Express® Green Card has been collected independently by MyMoneyBlog.com.

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

Lesser-Known Cheap Cell Plans on Verizon, AT&T, and T-Mobile Networks – Unlimited Data from $25/Month

Posted on August 10, 2023 // 29 Comments

Updated 2023. You can save hundreds of dollars per year by shopping around and using a lesser-known plan. Every major network sells wholesale minutes and data to MVNOs (Mobile Network Virtual Operators), which they in turn sell at a significant discount to individuals. Most recently, the major networks themselves have either entered the game and/or bought out competitors. You can now get “unlimited” data for just $25 a month on most networks.

The drawbacks are that the customer service may be more lean, and the data speeds may be slower as the MVNO data is usually at a lower prioritization than if you had a direct plan. If you’re at a Taylor Swift concert, the MVNO plan users will be the ones with slow uploads to TikTok. But once I was set up, it was pretty smooth sailing and worth the savings given my needs (I also can’t afford to go to Taylor Swift concerts).

This list includes unlimited talk and text plans that include 5G and 4G LTE data. Many of these advertise “unlimited data”, which actually means they throttle speeds down the 128 kbps (2G) after your LTE allotment runs out. Here are the best options by network below (Verizon, AT&T, T-Mobile). I sort by network because that usually makes it easier to Bring Your Own Device (BYOD), though every MVNO will have a form where you can check compatibility via your phone’s specific identification number (IMEI or MEID).

Disclosure: This post includes affiliate links where available. If you make a purchase through the links below, I may be compensated.

T-Mobile Network – T-Mobile Network Color: Hot Pink

  • Unlimited Talk & Text + 5 GB 5G/LTE Data. Mint Mobile has an unlimited talk, text, and 5 GB 5G/LTE data plan from $15 per month. Their intro offer is 3 months at $15 per month for all plans. After that, you’ll have to buy 12 months of airtime upfront to get the $15 per month price. After your 5G/LTE data runs out, you still get data included at slower 2G data speeds until your month resets. 15 GB for $20/month ($240/yr), or 40 GB for $30/month.
  • Less value, but direct from T-Mobile. T-Mobile Connect has an unlimited talk, text, and 1 GB data plan for $10 a month. 3.5 GB for $15/mo. 6.5 GB for $25/mo.
  • Unlimited Talk & Text + “Unlimited” 5G/LTE Data (30 GB full speed). Boost Infinite offers unlimited talk, text, and “unlimited” data for $25 a month + taxes. 30 GB of high speed data before “lower speeds”. Use all 30GB as mobile hotspot for additional $10/mo.

Note: I personally use Mint Mobile – see my Mint Mobile review for tips and details based on my experiences.

AT&T Network – AT&T Network Color: Blue

  • Unlimited Talk & Text + 1 GB 5G/LTE Data. Boost Mobile offers unlimited talk, text, and 1 GB data for $8.33 a month. To find this plan option, you must click on “12 months” on the Plans page. You must prepay $100 + taxes/fees upfront for 12 months of service. After your 5G/LTE data runs out, you still get data included at slower 2G data speeds until your month resets. You can choose the AT&T network (GSMA) when you sign up. You can also upgrade to 15 GB of data for $20/month ($240/yr).
  • Unlimited Talk & Text + “Unlimited” Data (16 GB full speed). AT&T Prepaid offers unlimited talk, text, and “unlimited” data for $25 a month. You must prepay $300 + taxes/fees upfront for 12 months of service. After 16GB of data each month, speeds are slowed to max 1.5 Mbps for the month… 16GB is a relatively low cap for “unlimited” data.

Verizon Network – Verizon Network Color: Red

  • Unlimited Talk & Text + 2 GB 5G/LTE Data. Twigby Mobile runs on the Verizon network and offers unlimited talk, text, and 2 GB data for $15 a month (Intro offer is $5/mo for 3 months). 5 GB for $20 a month (Intro offer is $10/mo for 3 months).
  • Unlimited Talk & Text + Unlimited 5G/LTE Data. Visible Wireless has an unlimited talk and text plan with unlimited 5G/LTE data that recently dropped their pricing to a flat $25 per month, tax and fees included, no annual prepayment required. Data speed will be lower (5-12 Mbps for LTE) compared to Visible+ plan. No group buy required. Visible is owned by Verizon. Unlimited hotspot included (5 Mbps cap). Ability to add a smartwatch Apple Watch for $10/mo.
Filed Under: Deals & Offers, Frugal Living //

Best Interest Rates on Cash – August 2023

Posted on August 7, 2023 // 1 Comment

Here’s my monthly roundup of the best interest rates on cash as of August 2023, roughly sorted from shortest to longest maturities. There are often lesser-known opportunities available to individual investors. Check out my Ultimate Rate-Chaser Calculator to see how much extra interest you could earn from switching. Rates listed are available to everyone nationwide. Rates checked as of 8/7/2023.

TL;DR: 5%+ APY available on liquid savings. 5% APY+ available on multiple short-term CDs. Compare against Treasury bills and bonds at every maturity.

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

  • 5.25% APY ($1 minimum). SaveBetter lets you switch between different FDIC-insured banks and NCUA-insured credit unions easily without opening a new account every time, and their liquid savings rates currently top out at 5.25% APY from multiple banks. See my SaveBetter review for details. SaveBetter does not charge a fee to switch between banks.
  • 5.20% APY (before fees). MaxMyInterest is another service that allows you to access and switch between different FDIC-insured banks. You can view their current banks and APYs here. As of 8/7/23, the highest rate is from Customers Bank at 5.20% APY. However, note that they charge a membership fee of 0.04% per quarter, or 0.16% per year (subject to $20 minimum per quarter, or $80 per year). That means if you have a $10,000 balance, then $80 a year = 0.80% per year. This service is meant for those with larger balances. You are allowed to cancel the service and keep the bank accounts, but then you may lose their specially-negotiated rates and cannot switch between banks anymore.

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

  • The leapfrogging to be the temporary “top” rate continues. Milli.bank (app-only) at 5.25% APY. CIT Platinum Savings at 5.05% APY with $5,000+ balance.
  • SoFi Bank is now up to 4.50% APY + up to $275 new account bonus with direct deposit. You must maintain a direct deposit of any amount each month for the higher APY. SoFi has their own bank charter now so no longer a fintech by my definition. See details at $25 + $250 SoFi Money new account and deposit bonus.
  • There are several other established high-yield savings accounts at 4.25%+ APY that aren’t the absolute top rate, but historically do keep it relatively competitive for those that don’t want to keep switching banks.

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

  • No Penalty CDs offer a fixed interest rate that can never go down, but you can still take out your money (once) without any fees if you want to use it elsewhere. CIT Bank has a 11-month No Penalty CD at 4.90% APY with a $1,000 minimum deposit. Ally Bank has a 11-month No Penalty CD at 4.55% APY for all balance tiers. Marcus has a 13-month No Penalty CD at 4.50% APY with a $500 minimum deposit. Consider opening multiple CDs in smaller increments for more flexibility.
  • Blue FCU via SaveBetter has a 9-month No Penalty CD at 5.25% APY. Minimum opening deposit is $1. No early withdrawal penalty. Withdrawals may be made 30 days after opening.
  • Northern Bank Direct has a 11-month certificate at 5.60% APY. $500 minimum. Early withdrawal penalty is all the interest earned.

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

  • Vanguard Federal Money Market Fund is the default sweep option for Vanguard brokerage accounts, which has an SEC yield of 5.24%. Odds are this is much higher than your own broker’s default cash sweep interest rate.
  • The PIMCO Enhanced Short Maturity Active Bond ETF (MINT) has a 5.47% SEC yield and the iShares Short Maturity Bond ETF (NEAR) has a 5.52% SEC yield while holding a portfolio of investment-grade bonds with an average duration of ~6 months.

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

  • 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 8/4/23, a new 4-week T-Bill had the equivalent of 5.38% annualized interest and a 52-week T-Bill had the equivalent of 5.36% annualized interest.
  • The iShares 0-3 Month Treasury Bond ETF (SGOV) has a 5.29% SEC yield and effective duration of 0.10 years. SPDR Bloomberg Barclays 1-3 Month T-Bill ETF (BIL) has a 5.10% SEC yield and effective duration of 0.08 years.

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

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

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

  • Genisys Credit Union pays 5.25% APY on up to $7,500 if you make 10 debit card purchases of $5+ each, and opt into receive only online statements. Anyone can join this credit union via $5 membership fee to join partner organization.
  • Pelican State Credit Union pays 5.50% APY on up to $10,000 if you make 15 debit card purchases, opt into online statements, and make at least 1 direct deposit, online bill payment, or automatic payment (ACH) per statement cycle. Anyone can join this credit union via partner organization membership.
  • The Bank of Denver pays 5.00% APY on up to $25,000 if you make 12 debit card purchases of $5+ each, receive only online statements, and make at least 1 ACH credit or debit transaction per statement cycle. Thanks to reader Bill for the updated info.
  • All America/Redneck Bank pays 5.30% APY on up to $15,000 if you make 10 debit card purchases each monthly cycle with online statements.
  • Presidential Bank pays 4.62% APY on balances between $500 and up to $25,000 (3.625% APY above that) if you maintain a $500+ direct deposit and at least 7 electronic withdrawals per month (ATM, POS, ACH and Billpay counts).
  • 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.

  • Dept of Commerce FCU has a 60-month CD at 4.67% APY $500 minimum. The early withdrawal penalty is 180 days of interest. Anyone can join this credit union via partner organization.
  • Lafayette Federal Credit Union has a 5-year certificate at 4.42 APY ($500 min), 4-year at 4.68% APY, 3-year at 4.84% APY, 2-year at 5.09% APY, and 1-year at 5.20% APY. They also have jumbo certificates with $100,000 minimums at slightly higher rates. The early withdrawal penalty for the 5-year is very high at 600 days 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 non-callable CD at 4.55% APY (callable: no, call protection: yes). Be warned that both Vanguard and Fidelity will list higher rates from callable CDs, which importantly means they can call back your CD if rates drop later.

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

  • Willing to lock up your money for 10 years? You can buy long-term certificates of deposit via the bond desks of Vanguard and Fidelity. These “brokered CDs” offer FDIC insurance, but they don’t come with predictable early withdrawal penalties. You might find something that pays more than your other brokerage cash and Treasury options. Right now, I see a 10-year CDs at (none available, non-callable) vs. 4.08% for a 10-year Treasury. Watch out for higher rates from callable CDs where they can call your CD back if interest rates drop.
  • How about two decades? Series EE Savings Bonds are not indexed to inflation, but they have a unique guarantee that the value will double in value in 20 years, which equals a guaranteed return of 3.5% a year. However, if you don’t hold for that long, you’ll be stuck with the normal rate, currently 2.50% for EE bonds issued from May 2023 to October 2023. As of 8/4/23, the 20-year Treasury Bond rate was 4.36%.

All rates were checked as of 8/7/2023.

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

Facebook User Privacy Class Action Settlement (File a Claim Soon)

Posted on August 2, 2023 // 1 Comment

Facebook has another class action settlement, this one for $725 million and different from the last $90 million one. Lots of people will be eligible:

If you were a Facebook user in the United States between May 24, 2007, and December 22, 2022, inclusive, you may be eligible for a cash payment from a Class Action Settlement.

File a claim here. It’s all online and pretty simple, although you may have to log into your Facebook account if you forgot your username. The deadline to file a claim is coming up soon on August 25, 2023.

I don’t have deep thoughts about these class action settlements. I simply submit a claim and forget about it. Last month, I think I was surprised by $100+ in claims from a Yahoo data breach and Zoom something something.

Filed Under: Deals & Offers //

CIT Bank Review: 11-Month No-Penalty CD at 3.75% APY, Platinum Savings 3.75% APY ($300 Deposit Bonus)

Posted on July 27, 2023 // 49 Comments

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Rate hike for No-Penalty CD. CIT Bank (not to be confused with Citi Bank) is an online-only bank that has a multi-year history of competitive rates, although they do like to start up new product lines while keeping low rates on their older product lines. Here are the current noteworthy accounts:

Check out my rate chaser calculator to see if it makes sense for you to move money over.

New customer? Opening process overview. Here’s my review of the opening process if you are a new customer.

  • The application process was completely online. You provide the usual personal information.
  • You must submit to a credit check, but in my experience it was a “soft” pull which did not harm my credit. None of my various credit monitoring services showed it was a hard pull.
  • You may fund via (1) electronic ACH transfer, (2) wire transfer, (3) mobile check deposit via CIT Bank mobile app (iOS and Android), and (4) mailing in a paper check. There was no option for credit card funding. I picked online ACH funding and you need to provide routing and account numbers, followed by manual verification via micro-deposits after a day or two. There was no instant linking option via login information.

After deposit verification, then your funding will go through.

You have successfully verified your external account. Please allow up to 5 business days for your funds to appear in your CIT Bank account.
No further action is required for this account. Thank you!

Existing savings or money market customer? Check your rate. If you already have an existing High Yield Savings account, it may remain at a lower interest rate than the currently-promoted accounts. If so, take a minute and upgrade yourself to the better interest rate.

Bottom line. CIT Bank is a lean bank offering targeted products for folks looking to get higher interest rates on their cash balances. They don’t maintain physical bank branches or fancy apps. However, I have been pleasantly satisfied with their customer service on my accounts with them.

* Here are the disclosures for the Platinum Savings:

Platinum Savings is a tiered interest rate account. Interest is paid on the entire account balance based on the interest rate and APY in effect that day for the balance tier associated with the end-of day account balance. *APYs — Annual Percentage Yields are accurate as of November 20, 2025: 0.25% APY on balances of $0.01 to $4,999.99; 3.75% APY on balances of $5,000.00 or more. Interest Rates for the Platinum Savings account are variable and may change at any time without notice. The minimum to open a Platinum Savings account is $100.

** Here are the disclosures for the Savings Connect:

APY — Annual Percentage Yield is accurate as of November 20, 2025. Interest Rates for the Savings Connect Account are variable and may change at any time without notice. The minimum to open a Savings Connect account is $100. Fees could reduce earnings on the account.

For complete list of account details and fees, see the CIT Bank Personal Account disclosures.

*** Here is the fine print (disclosures) for the 11-month No-Penalty CD:

APY — Annual Percentage Yield is accurate as of January 9, 2026. $1,000 minimum to open the account.
With a No-Penalty CD, you may withdraw the total balance and interest earned, without penalty, beginning 7 days after funds have been received for your CD. No withdrawals are permitted during the first 6 days following the receipt of funds.

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

Apple News+ 4-Month Free Trial: WSJ, Businessweek, WaPo, Barron’s

Posted on July 26, 2023 // 3 Comments

If you read a lot of finance articles online, you’re probably as tired as I am of running into paywalls. Even though I already pay for subscriptions to the New York Times, Wall Street Journal, and Bloomberg Businessweek (paper magazine!), I’m still getting bounced all the time. Apple News+ gets you access to “selected” articles from a lot of the big names, and right now you can get a 4-month free trial from Best Buy. Just “buy” it and they’ll send you a special link. Technically that’s a $40 value. Returning subscribers can still get a 3-month free trial. Much better than the standard 1-month free trial.

Unfortunately, it only works through the News+ app on Apple devices (iPhone, iPad, iPod touch, or Mac) and not Android or PC devices.

  • Wall Street Journal
  • Barron’s
  • Bloomberg (very limited)
  • Bloomberg Businessweek
  • Washington Post
  • Morningstar Magazine
  • The Atlantic
  • Vox

I’m just a few days in, but I am liking it more each day. There is a bit of hassle because you have to read the articles within the app, but you can search by keyword and usually find the specific article that you’re looking for after hitting the paywall on your web browser. Very satisfying.

I still don’t know if I’d pay $10 a month, but I am warming up to the idea if I can fully drop some of my other subscriptions. The free trial may work on me!

Note: It does set you up for auto-renew automatically at the end of the trial, BUT you can cancel the trial right after signing up, and still get to enjoy the entire free trial without worrying about the auto-renew.

You can also get a 3-month free trial of Apple TV+. New and returning Apple TV+ subscribers. Might need to catch up on my Ted Lasso.

Filed Under: Deals & Offers //

Megabus $1 Fare Sale

Posted on July 23, 2023 // Leave a Comment

Megabus now runs intercity bus service to over 500 cities all across the US (also runs in UK and Canada). Right now, you get can $1 fares with their “Christmas in July” sale (Via The Gate, see tweet below). The schedule is now out through January 8th, 2024 as well. Simply search for fares between cities, and if you scan the dates you can find fares starting at $1. I did a quick search and they are definitely sprinkled around, supposedly the first couple of seats sold for each trip. Note that there is a $3.99 booking fee and possibly a $1.50 facility fee.

I’ve never tried it before, but it does seem like an interesting frugal and/or adventurous option, especially for shorter distances. I wonder if you could string a bunch of these short trips together and make your own little road trip but get some work done on the bus instead of driving all day. Wikipedia has more info in their history.

Filed Under: Deals & Offers //

Milli Savings Account Review: 5.25% APY (App Only)

Posted on July 20, 2023 // 20 Comments

Milli is a new app-only savings account that is backed by the FDIC insurance of First National Bank of Omaha (FNBO). iOS and Android apps available. They came out of the gates at 5.00% APY but recently raised to 5.25% APY. Here are the highlights:

  • 5.25% APY as of 7/20/23
  • No monthly fees, no minimum balance required.
  • Ability to split money into multiple “Jars”.
  • App-only. Currently requires iPhone iOS 15.0+, or Android OS 8.0+.
  • Uses the Allpoint ATM network of 55,000 surcharge-free ATMs worldwide.
  • No paper checks. No checkwriting ability. No mobile check deposit.

For you rate chasers. this puts Milli newly at the top for a liquid savings account after my July 2023 interest rate update. We’ll see how long it lasts.

If anyone remembers FNBO Direct, that is still around at 3.75% APY. So there is a history of FNBO going trendy and grabbing some deposits with a competitive APY for a while. The term “online savings account” is now redundant. The new thing is app-only.

Reading through the various app reviews, the most common complaint seems to be getting denied for a new account after going through the whole application process and/or difficulty funding the new account. So be prepared for some account-opening hurdles.

Filed Under: Banking, Deals & Offers //
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