Saving Money

How To Save Money While Saving The Environment

May 29, 2020 By Kathryn Vercillo Leave a Comment

Saving the environment is a worthy cause. There are so many good reasons to invest your energy into green actions. Most of those reasons are beneficial on a global, or at least local, scale. However, they can also benefit you personally. For example, many of the actions that you take to save the earth also help you save money.

Here are nine ways to save money while saving the environment:

1. Reduce Purchases

The first rule of “reduce, reuse, recycle” is the most important one: reduce. Stop buying things that you don’t need. They go into landfills. It’s bad for the earth. It’s bad for your bank account.

2. Save Energy At Home

Reduce your energy use at home. The immediate benefit is a reduction in your utility bills. The long-term benefit is that you’re doing good for the earth.

3. Eat Plants

Stop or significantly reduce meat-eating. Don’y buy expensive meat substitutes or processed foods. Instead, eat plants. It’s much better for the environment. Fresh produce is typically cheaper than those other products, so you will likely save money on your grocery bill. Plus, a healthy vegetarian diet might also save you long-term medical costs.

4. Stop Wasting Food

Food waste is a huge problem in America. Do your part in saving the environment by eliminating food waste in your own home. Shop your fridge. Label and date all items. Freeze what you can. Eat what you buy.

5. Invest in Alternative Energy Stocks

Sometimes you have to spend money to make money. Investing in stocks is one way that people do that. Try investing in alternative energy stocks. This supports saving the environment. If you’re lucky, you’ll increase your own savings at the same time.

6. Buy Energy-Saving Gadgets and Devices

When it comes to spending money, the first rule is “don’t.” (In other words, reduce consumption.) However, when you do plan to spend money, you might find it worth it to spend a little more for eco-friendly purchases. For example, buy Energy Star appliances or a smart thermometer for your home. This will allow you to save money over time while also saving the environment.

7. Give Up Your Car

If you can go car-free then you’ll go a long way towards saving money and saving the earth. Perhaps you can’t give up your car entirely. You can still take small steps. Drive as little as necessary. Walk, bike, or take public transportation instead.

8. Reduce Paper Waste

Do you use paper towels to clean up spills? A rag works just as well, if not better, and it doesn’t cost as much to you or the environment. Do you get your coffee to go in paper cups? A reusable coffee thermos is a better choice. Some stores even give you a discount if you bring your own.

9. Save Yourself the Costs of Natural Disasters

If we aren’t kind to the earth, then we risk continued and elevated natural disaster issues. Fires, hurricanes, and floods will all result. These things cost money at a national level. If you’re personally affected by a disaster, you’ll also feel the financial impact. Help reduce these long-term issues by reversing climate change through saving the environment.

What Happens To Savings Account When Tapped Above Limit

May 27, 2020 By Kathryn Vercillo Leave a Comment

Did you know that you are only allowed to make a certain amount of withdrawals from your savings account every month? More importantly, are you aware of the penalties that you might face if you tap your savings account above that limit? If you don’t want to pay bank fees, or potentially even lose your savings account, then it’s important to make yourself aware of all of the rules and regulations around accessing your savings account funds. And in the face if COVID-19, there are a lot of changes to stay abreast of.

What is Federal Reserve Board Regulation D?

Chances are that if you aren’t well-versed in the intricacies of finance then you haven’t ever heard of Federal Reserve Board Regulation D. What is it? Well, this regulation limits the number of transactions that you can make from your savings account. In other words, while certain banks might have their own specific rules about this topic, all banks must meet the minimum requirements of Federal Reserve Board Regulation D.

However, this regulation was amended recently.

So, first of all, what is Federal Reserve Board Regulation D? This is a regulation that issues a lot of rules for banks. For example, one of the main rules was that “depository institutions” (banks, credit unions, etc.) must keep a minimum amount of money on hand so that customers can withdraw money from their accounts. The regulation also historically limited savings account transactions to six times per month.

Therefore, you could not transfer money from your savings account more than half a dozen times per month, according to this regulation. Your own bank and specific account might be even stricter. For example, you might have an account that only allows you to withdraw a certain amount from savings without incurring a fee. It might be fewer than six times per month (but because of Federal Reserve Board Regulation D it can’t be more often.)

COVID-19 Changed the Rules of Federal Reserve Board Regulation D

Up until very recently, that was simply the rule. You could withdraw money from your savings account up to six times per month without being in violation of Federal Reserve Board Regulation D. However, there’s a new amendment to the regulation that suspends this limitation. This suspension came about as a result of the financial strain that people are facing due to COVID-19.

Thanks to pressure from banking professionals, The Federal Reserve recognized that this is a tie of economic crisis in America. As a result, they decided to relax many of the rules established by Federal Reserve Board Regulation D. This means that the previous rules don’t currently apply. Therefore, banks can allow you to make as many transactions as you wish right now from your savings account. They do not have to limit your transactions to six per month.

What Happens To Your Savings Account If You Make Many Transactions?

Under the original rules of Federal Reserve Board Regulation D, banks could not allow you to make more than six transactions per month. Therefore, there were consequences if you did. In some cases, the bank would charge you a fee per transaction over that amount. This is typically called an Excessive Withdrawal Fee. In other instances, the bank would change your savings account to a checking account. Therefore, you would no longer earn savings account interest rates on that money.

However, under the new rules, those restrictions don’t apply. Banks no longer have to restrict the number of transactions that you’re allowed to make from your savings account. Therefore, most likely, nothing at all will happen to your account if you make more than 6 transfers from savings this month. That said, you want to check with your bank about their specific rules and regulations. Not only does each bank have its own rules, but many banks offer different types of savings account, so whether or not you can make multiple transactions could depend upon the type of savings account that you have.

Banks Make It Easier to Access Money During Coronavirus Pandemic

Chances are that your bank is going to take advantage of the opportunity to allow you to access your savings account with penalty. Many professional banking organizations have long called for an end to the cap on transactions anyway. Now that Federal Reserve Board Regulation D is suspended, they’ll let you make your withdrawals without penalty. This is just one of many ways that banks are trying to make it easier for you to access your money during the limitations of the Coronavirus Pandemic.

For example, many banks, including Ally Bank, are waiving a wide range of fees. They are waiving the “excessive withdrawal fee” of course since this is not longer a Federal Reserve rule. But that’s not all they are waiving. They are also waiving overdraft fees and fees for expedited checks. Many other banks have made similar changes.

Check With Your Bank to Find Out Current Rules

The most important thing that you can do is to check with your bank to find out about all rules related to fees. Since so much has changed in the face of COVID-19, you need to get the most up-to-date information. Ask your bank representative what changes your account experienced as a result of COVID-19. Ask specifically about reduced or waived fees. Make sure that you double-check the expiration date of those waivers.

For example, Ally Bank’s fee waivers currently run through July 18, 2020. Unless they decide to extend that, fees resume in mid-July. It’s importune to be aware not only of what you can do right now but when that might change again.

To that end, you might also want to set a news alert for Federal Reserve Board Regulation D. After all, this isn’t a permanent change. When the immediate financial strain of COVID-19 passes, The Federal Reserve may lift the suspension. At that time, limitations might once again restrict you to six transactions per month. With the news changing all of the time, this is an area of personal finance that it’s wise to stay abreast of.

How To Open The Best Savings Accounts In A Low-Interest Rate Environment

May 26, 2020 By Susan Paige Leave a Comment

savings account

In March, as a response to the pandemic brought by the coronavirus, two emergency rate cuts were made by the Federal Reserve. The federal funds rate was moved to the target range of 0-2.5%. Interest rates are clearly heading lower, and if the crisis continues, it will only get worse.

The lowering of interest rates will surely hurt those who have tucked their hard-earned money into savings. That holds true even if lower interest rates are actually meant to aid or help the economy.

If you’re one of those who are hoping to make saving cash a top priority, then, read on to learn more about savings accounts and what to consider when opening one in a low-interest economy.

Why Open A Savings Account?

Helps In Achieving Personal Finance Goals

If you feel that you need to access funds, you only have to go to the nearest branch of your bank and transfer money from your savings account to your checking account, or make a withdrawal. Indeed, with savings accounts, banks, credit unions, and other financial institutions make it easy for consumers to reach their funds. It’s also a good thing that you can perform unlimited cash withdrawals over the counter or through a cash dispenser. Fund transfers, however, often have restrictions.

More importantly, a savings account will help you set some money aside to help you achieve your financial goals. As you probably already know, having cash in hand will make it easy for you to spend on something or things that are actually not budgeted for.

Offers Safety

High-interest savings accounts are the safest place where you can save money. Cash at home or on hand can get lost very easily. That being said, rather than hiding a lot of cash at home or carrying it around, it’s best to have it kept in a savings account. The good thing about keeping your money in a savings account, especially at the bank, is that it gets insured by the federal government so that you can still recover it if ever something terrible happens.

Shop Around

It’s best to do comparison shopping for you to ensure that you’re getting an excellent deal. It’s a way of making sure that you’ll be earning as much interest as possible even if rates fall. You know how important having the chance to earn additional interest could be, especially when it comes to meeting a specific savings goal.

Earning the national APY or average annual percentage yield of 0.1 percent and earning an APY of 1.7 percent could, no doubt, have a big difference. The difference even becomes bigger if you actually have a lot of funds to save. Keep in mind that the best rates for savings accounts typically pay around 17 times what the national average offers. The goal is to find a place where you can open a savings account and receive an interest rate that’s closer to what’s considered as the best.

Going with savings accounts that online banks offer, most of the time, is your best option. Online banks still offer competitive, better yields when compared to local branches. Even when interest rates slide further, the rates you’ll get from online banks are also likely to remain competitive.

In connection with comparing interest rates, if it’s peace of mind that you’re really after, opt for a bank, may it be online or local brick-and-mortar, that offers a fixed rate set for several months.

When Do You Need The Funds?

You have to ask yourself this question and honestly answer it. If you’re going to spend or need to withdraw the funds within a few years, then, it would be best actually to leave it in a deposit savings account. One thing you have to remember is that there are accounts that only deliver substantial or significant returns over a longer period. That being said, if you don’t expect yourself needing the funds for a while or if you have enough money on hand to see you through an unexpected job loss or emergency, consider other options. One option you can take a look at is a high-yield, no-penalty CD or certificate of deposit. A CD is ideal for consumers who want to grow their savings even outside the traditional savings account. More about the no-penalty certificate of deposit below.

Open A No-Penalty Certificate Of Deposit

Why should you opt for no-penalty CDs over traditional CDs? First, they won’t go down even if interest rates will continue to drop because of their fixed high-yield rate. Second, when compared to a traditional CD, no-penalty CDs offer customers more access to their funds. What that means is that you can still withdraw your full balance without penalties or fees even after locking in one fixed-rate, high-yield, no-penalty certificate of deposit. You can do it beginning seven days after you fund your account.

Consider CD Laddering

When laddering CDs, you’re going to buy multiple certificates of deposit that mature at varying intervals. You’ll have the money you can use and reinvest as each CD comes due. It also gives you the chance to lock yourself into a CD with a yield that’s higher when compared to what the banks currently offer in an environment with falling interest rates. Laddering CDs is, indeed, a strategy that savers can consider, especially those who are hoping to insulate themselves in the face of falling interest rates.

Open A Money Market Account

You can also consider money market accounts if CDs don’t seem like a smart strategy for your financial goals. A money market account is an excellent alternative for a traditional savings account. Savers can enjoy having spending options while their money earns higher interest.

A money market account typically comes with a debit card or checks you can use to access your account money directly. Money market accounts are like a savings account, only that they tend to actually be more restrictive when it comes to minimum balance and withdrawal limits. They’re FDIC-insured, and their rates are typically higher than traditional savings accounts, too.

Final Thoughts

Aside from the options of how to open the best savings accounts discussed above, another valuable way to save your hard-earned money is through retirement plans or accounts. 401(k) plans and individual retirement accounts (IRA), for instance, aren’t only low risk, but are also crucial to a comfortable life after retirement. The earlier you start to save in these accounts, the more your funds grow.

Saving For Education In North America

May 25, 2020 By Susan Paige Leave a Comment

College is expensive in North America. Many people rely on student loans. However, student loan programs are changing rapidly. We don’t know what is in store for them for the future. Moreover, starting adult life saddled with student loan debt makes life more challenging. It’s best to start saving for education sooner rather than later.

Best Accounts to Save Money for Higher Education

Of course, you could simply put money into a savings account and withdraw it when it’s time for college. However, that’s not the best use of your money. Instead, you should take advantage of the different savings programs. Specifically, you want to look for savings accounts that help you maximize your investment while also giving you benefits such as tax-free savings.

529 Plans in the US

One of the most popular options in America is the 529 Savings Plan. This is a great option for parents who want to set aside money for their children’s college funds. Parents can invest the money tax-free. The child must use the money for tuition or other college expenses, such as college textbooks. When they withdraw the money for those purposes, the funds are taxed, but the taxes are at the student’s income rate (which is typically lower than the rate for parents at the time of investing.)

Registered Education Savings Plan (RESP) in Canada

Whereas 529 Plans are the most popular college savings option in the United States, in Canada it’s the Registered Education Savings Plan. RESP in Canada is a type of account that gives parents a means to invest their money for their children’s higher education. They can even earn government grants through matching in this program. Like 529 plans, RESP accounts are tax-sheltered. They must be used for college costs.

Other College Savings Accounts

Most likely, you will want to save with a 529 Plan or RESP. However, there are additional options for college savings accounts including:

Education IRA, which is similar to a 529 Plan but with more limitations. This is also called a Coverdell Education Savings Account (ESA).
Custodial account, which is an account that an adult sets up for a child to receive when they turn 18 (or 21). However, they may or may not use it for their education
Prepaid tuition, which locks in the price at the current rate of the institution. However, this means the child must attend that specific institution.

Tips for Saving Money for Higher Education

Review all of your options carefully. Not all savings accounts are created equally, including those for saving for college. For example, 529 plans are state plans and each state has slightly different rules from the others. Review the rules in your state. Similarly, there are different RESP accounts. Make sure that you know what the terms of your account are before you begin investing.

Your child’s college education is important. Start saving as soon as possible. College will be here before you know it.

Is Costco Gas Quality the Same as Exxon, Shell and Chevron?

May 25, 2020 By Trey LaRocca 105 Comments

Everyone loves Costco, right? They treat their employees much better than other businesses, and they have competitive prices on a wide variety of items. In fact, Costco is known for some of the lowest prices on gas. But what do these low prices mean when it comes to Costco gas quality?

Cheap Gas But What About Costco Gas Quality?

Costco gas prices positively cannot be beat. Typically, this means that a company saves money by making a cheaper product. This can call into question the quality of Costco’s black gold.

When Costco is selling its gasoline for so much less than the competition, it’s natural to be skeptical and wonder if the quality is equal to brand-name gasoline such as Exxon, Shell, and Chevron. Most people want to know if Costco gas is good quality fuel, or if it might cause long-term damage to their fuel system.

Gas Quality Standards

First, it’s important to note that the government sets fairly stringent standards for all gasoline sold in the United States. When it comes to octane level and other specific gasoline characteristics, all gas is basically the same. The difference between the fuel that you buy at branded gas stations comes down to the detergents that are added to the gas.

Even with detergents, the government sets standards. The federal government has required since 1995 that all gasoline sold in the U.S. must contain a certain amount of detergent additives. These additives are Environmental Protection Agency (EPA) approved, and the amount of detergent which must be added to keep vehicle engines free from deposits is regulated. Costco gasoline meets all these requirements, despite being so much cheaper than surrounding stations. Just because you are saving money, that does not mean that they have skimped out, or skirted any regulations.

Is Costco Gas As Good As the Competitors?

So, Costco meets the minimum requirements, but is it still as good as other brand-name gasoline? A number of automakers made the decision that the U.S. government additive requirement wasn’t high enough for many cars. As a result, they developed a “Top Tier” standard. In order to meet the “Top Tier” designation, the fuel sold at the gas station must meet additive requirements higher than required by the U.S. government. Costco fuel meets this top-tier standard, so that just goes to show the value that you are getting.

While Costco’s gas isn’t the same as the other brands, that does not make it a lesser product. After all, if it was the same exact gas, Costco wouldn’t be able to set itself apart. Costco gasoline is practically equal to any other major brand gasoline. You should not notice any difference when filling up your vehicle at Costco as you would with any other brand. The only difference you should notice is a much lighter hit to the wallet.

Get Better Gas Quality and Save Money

If you aren’t sure that Costco gasoline is as good as another major brand’s, try this “gas hack” to save money. In most areas of the country, you can fill up at the Costco gas station, plus add quality fuel injector cleaner. If you add this fuel injector cleaner as recommended, you will still pay less for Costco gas and the fuel injector cleaner, than you would on gas alone at a major brand gas station. This, though, is more of a peace-of-mind improvement. Most mechanics will tell you that fuel injector cleaner really doesn’t do much, so maybe just enjoy the savings that come with your yearly membership.

In the end, there is nothing to suggest that Costco brand fuel is inferior to any other brands of gasoline. Don’t let the price alone dissuade you from filling up there, but we won’t judge if the long lines drive you away.

Do you fill up at Costco gas stations? What do you think about the gas quality?

Is the Costco Membership Fee Worth it?

Is a Costco Executive Membership Worth the Price?
Costco Gas Calculator: Will I Save Money Buying a Membership if All I Buy is Fuel?

Costco Return Policy

Costco Holiday Schedule

Costco Tires

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(Photo courtesy of Adam Keys)

Save Up or Reduce Principle During Zero Interest Period

May 22, 2020 By Trey LaRocca Leave a Comment

COVID-19 has led to some very unique measures on the part of the US government. With $1,200 stimulus checks and increased unemployment benefits, it is no wonder that student loans got worked on. The current measures regarding student debt include a zero-interest period. So, there are a couple things this could mean for you. As a result of these measures, one could actually suspend loan payments completely for the duration of this benefit. This will help you save up an emergency fund for times like these. On the other hand, you could take the opportunity to pay straight out of the principle of the loan, decreasing the interest you’ll be charged afterward. Both seem to be pretty smart choices, so we will dive into a video to discuss what is best.

In Summary

It largely depends on your situation. as with most financial decisions, your current debts and assets will change the answer. If you have a lot of other high-interest debt, it will probably pay off to get rid of some. Not only that, but if you have no savings, now is a great example of a time where they would have come in handy. SO, if either apply to you, you should probably suspend and save. If you are otherwise debt-free and have decent savings, you may benefit from reducing the principle on your loan. Doing this could save you a decent chunk of change in the long run on interest, and could help you prepare better for the future.

I hope this video helped you make your decision. The primary focus right now should be your financial security, so don’t worry as much about gains in a time like this. While many people may be able to score big in stocks right now, you can still count yourself lucky if you only come out of this with what you had before. Not very many people will be able to say the same.