Money Market Rates December 2017

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

1.40% Popular Direct Savings
1.40% FNBO Direct Online Savings
1.35% American Express High Yield Savings
1.30% Marcus by Goldman Sachs (GS Bank) Online Savings
1.30% Discover Bank Online Savings
1.30% Capital One 360 Money Market
1.25% Ally Bank Online Savings
0.20% Unify (fmr. Western) FCU Money Market
0.04% Citibank Savings Account
0.04% Chase Plus Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates. Rates are believed to be accurate as of 12/27/17. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included one credit union in the list so that readers have a comparison point with banks.

Several other banks have bumped up their money market rates and most of the ones in my list are now paying 1.25% or more. I expect that some increase will become a trend for a while.

The frequent changes show how variable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

PFS

IRS Increases 401(k) Contribution Limit

For 2018, the IRS has increased employee 401(k) contribution limit to $18,500. This is an increase of $500 from the 2017 limit. For those who will be 50 or older in 2018, that limit will be $24,500.

PFS

Disclaimer
PFStock.com does not provide specific tax advice. If you have questions about 401(k) plans and taxes, please contact a qualified tax advisor.

Money Market Rates October 2017

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

1.40% Popular Direct Savings
1.30% GS (Goldman Sachs) Bank Online Savings
1.25% Ally Bank Online Savings
1.25% American Express High Yield Savings
1.20% Discover Bank Online Savings
1.15% FNBO Direct Online Savings
0.75% Capital One 360 Savings
0.20% Unify (fmr. Western) FCU Money Market
0.04% Citibank Savings Account
0.04% Chase Plus Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates. Rates are believed to be accurate as of 10/27/17. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included one credit union in the list so that readers have a comparison point with banks.

Several other banks have bumped up their money market rates and most of the ones in my list are now paying 1.15% or more. Even Citibank and Chase nudged their rates higher by 0.01%! I expect that some increase will become a trend for a while.

The frequent changes show how variable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

PFS

About ex-Dividends Revisited

Several years ago, I wrote a post about dividends and ex-dividends. Due to the change to T+2 settlement time, that article needs to be revised. Here, I will discuss the mechanics of dividends. Basically, stocks could be classified into two categories: those that pay dividends, and those that don't. A lot of smaller, growth companies do not pay a dividend. Companies are not required to pay dividends, and each dividend is declared by the company (usually at a board of directors meeting) before it is paid.

In the United States, most companies that pay a regular dividend do so every quarter. There are exceptions, for example some companies pay their dividends only once or twice a year. Most of the time, when looking at a financial website, the dividend is listed with the company stock quote. I estimate that 95% of the time this data is correct. However, sometimes it is inaccurate or outdated, so it is a good idea to confirm this information against another source.

Typically, when dividends are announced, the company will usually issue a press release that says something like this:

DALLAS, Aug. 1, 2017 /PRNewswire/ -- The board of directors of Kimberly-Clark Corporation (KMB) has declared a regular quarterly dividend of $.97 per share. The dividend is payable on October 3, 2017, to stockholders of record on September 8, 2017.

Let's dissect this statement. In 2017, Kimberly-Clark (NYSE: KMB) paid dividends of 97 cents per quarter (equivalent to $3.88 for the year). The dividend is paid on October 3 to "shareholders of record" on September 8. In order to be a "shareholder of record" one has to own the stock 2 business days before the record date. (This is a change from the previous 3 business day requirement.) In this case, that date is September 6. On September 7, the stock goes "ex-dividend". What that means is that if you buy the stock on September 7 or later, you are not entitled to this particular 97-cent dividend. The term "ex-" in this case means "without". So as of September 7, the stock trades without the current dividend.

A common question about dividends is "What happens if you sell the stock on September 7 or later, but before the October 3 date when dividends are paid?" In this case, you would be entitled to the dividend, even though you don't own the stock on the pay date. This has happened to me several times where I've received dividends on stock that I no longer own.

Another more involved question that people sometimes ask is "What if you bought the stock on September 6 and sold the stock on September 7. Does that qualify you as a "shareholder of record" for September 8?"

Looking at a calendar, if you buy the stock on Wednesday, September 6 (trade date), it will settle in your account T+2 days later, on the morning of Friday, September 8 (settlement date). On the settlement date, the brokerage deducts cash from your sweep account in exchange for the stock. If you sell the stock on Thursday, September 7, the sale will settle in your account on the following Monday, September 11.

In this example, you are the "shareholder of record" from the morning of Sept 8 until the morning of Sept 11. This sounds strange because you have already traded away the stock. Nevertheless, you "own" the stock at the close of business of Sept 8, so you are entitled to the dividend. Some investors actually use this method, which is known as a "dividend capture" strategy, to invest in stocks.

PFS

Credit Card Bonuses Q4 2017

Save money on purchases and get cash back with coupon codes and the following credit cards:

Citi Dividend Card

• 5% cash back 7/1/16 - 9/31/17: Hilton & Airlines
• 5% cash back 10/1/16 - 12/31/17: Best Buy & Department Stores
• 1% on everything else.

Discover Card

• 5% cash back 7/1/17 - 9/30/17: Restaurants
• 5% cash back 10/1/17 - 12/30/17: Amazon.com & Target
• up to 1% on everything else.

Barclaycard Arrival World MasterCard (Travel Rewards)

• 2.1% on travel and dining
• 1.05% on everything else.
• No annual fee.

BankAmericard Cash Rewards

• 3% on gas
• 2% at grocery stores
• 2% at wholesale clubs (including Costco)
• 1% on everything else.
• No annual fee.

Costco Anywhere Visa Card
This card replaced the Costco TrueEarnings Card from American Express on June 20, 2016.

• 4% on gas
• 3% on restaurants and travel
• 2% at Costco
• 1% on everything else.
• There is no annual fee, however you must be a Costco member.

Citi ThankYou Card

• 2X points on Dining Out & Entertainment
• 1X points on everything else.

Barclaycard Arrival Plus World MasterCard (Travel Rewards)

• 2.1% on travel and dining
• 2.1% on everything else.
• ($89 annual fee after first year)

PFS

Money Market Rates July 2017

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

1.20% GS (Goldman Sachs) Bank Online Savings
1.15% Popular Direct Savings*
1.15% Ally Bank Online Savings
1.10% Discover Bank Online Savings
1.10% FNBO Direct Online Savings
1.05% American Express High Yield Savings
0.75% Capital One 360 Savings
0.20% Unify (Western) FCU Money Market
0.03% Citibank Savings Plus
0.03% Chase Plus Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates. Rates are believed to be accurate as of 7/5/17. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included one credit union in the list so that readers have a comparison point with banks.

GS Bank (Goldman Sachs) has recently taken the lead among the interest rates. Several other banks have increased their money market rates and most of the ones in my list are now paying more than 1.00%. I expect that some increase will become a trend for a while.

The frequent changes show how variable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

PFS

Money Market Rates On The Rise

Here are the latest money market interest rates of the banks that I've been tracking on my blog. Note that these rates are sorted by APY, and represent institutions that I have accounts at, or have otherwise mentioned in my blog:

1.20% GS (Goldman Sachs) Bank Online Savings
1.15% Popular Direct Savings*
1.05% Ally Bank Online Savings
1.01% Discover Bank Online Savings
0.95% FNBO Direct Online Savings
0.95% American Express High Yield Savings
0.75% Capital One 360 Savings
0.20% Unify (Western) FCU Money Market
0.03% Citibank Savings Plus
0.03% Chase Plus Savings

In some cases, MMA interest rates are tiered. If this is the case, I usually report the interest rate at the $10,000 tier in these updates. Rates are believed to be accurate as of 6/7/17. I did not include banks that had special, or introductory rates in the list because they are not ongoing interest rates. I am also not including non-liquid accounts such as CD's in the list. I have included one credit union in the list so that readers have a comparison point with banks.

GS Bank (Goldman Sachs) has recently taken the lead among the interest rates. Several other banks have increased their money market rates by about 5 basis points (0.05%). I expect that this will become a trend for a while.

The frequent changes show how variable the money market is. Because this is a constantly moving target, it has been very hard to keep track of the rates that I've been getting in my various money market accounts, and this is the main reason I've decided to compile a list of these annual percentage yields.

So, that is the latest list of money market rates. Please let me know if you know of any higher interest rates.

PFS

Alexa, Where's My Stuff?

Alexa is an app provided by Amazon that can answer spoken questions. You can also check the status of an Amazon order just by asking, "Where's my stuff?"

Alexa answered me: "A shipment for your order placed on Wednesday, March 29th will arrive on Tuesday, May 23rd."

Hmm, that is a shipping time of nearly 2 months. Am I the only one that is disappointed with Amazon these days?

PFS

How Much Do You Invest?

A question that people often ask is "How much should you invest in a particular stock?" My short answer is a lot.

During a lunchtime conversation with a co-worker, he announced that he was buying 100 shares in company that makes jeans that happen to be popular with his daughter and her friends. In my mind, that is not investing; that is what some people call "playing in the stock market". And I would never do that. True stock investing requires far more fundamental research.

When deciding on how much to invest, you should push yourself to the edge of your comfort zone. The actual dollar amount depends on how big your portfolio is, and how much trading experience you have. What is comfortable for one person might be a stretch for others. But, by pushing toward the end of their comfort zone, investors are forcing themselves to more thoroughly consider their investment.

PFS

Disclaimer: This material is for general information only. It is not intended as an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any security or fund.

Discover Card Q2 2017 Cashback Bonus Categories

Discover Card offers a 5% cashback bonus on a "seasonally rotating" list of spending categories. They just announced their categories for Q2 2017. Currently, these bonus categories are as follows:

Discover Card

• 5% cash back 1/1/17 - 3/31/17: Gas Stations, Ground Transportation, and Wholesale Clubs
• 5% cash back 4/1/17 - 6/30/17: Home Improvement Stores, and Wholesale Clubs
• up to 1% on everything else.

I find it curious that Discover is offering a 5% bonus on purchases from Wholesale Clubs. The only such club that I'm a member of is Costco, and they do not accept Discover as payment. Does anybody know of a Wholesale Club that accepts Discover?

PFS

Surviving the Paycheck to Paycheck Lifestyle

Whether you live alone or have a family, living paycheck to paycheck doesn't give you any room for unexpected events. If your car needs a major repair or your child needs medical attention it can become difficult, if not impossible to get back on track. The good news is that there are many ways you can supplement your income and recover your losses in short order.

Organize a yard sale
In your time of need, there are clever ways to come up with a few hundred dollars to cover most if not all of your immediate emergency. For one, you can have a yard sale. If it's been a few years since you've cleaned out the basement, attic or garage, chances are pretty good that you have many items that you don't need. Furniture, clothing, tools and silverware are big sellers at yard sales. Doing this you get the added bonus of finally giving your home a thorough cleaning. If you collect coins, stamps, comic books or dolls, there are many private and professional retailers that will pay big for these items. Check online to see if there's a shop in your area.

Borrow money short term
I know the last thing you need is to owe more money, but in some instances, you can't avoid it. If you have a family member or friend who is able and willing you can take out a loan with them for a few months interest-free. If, however, this is not an option available to you, you could choose from any number of installment loans online. Maxlend Loans provides personal cash loans and installment loans in amounts up to $1250 as an alternative option to payday lending. Key benefits include minimal eligibility requirements, fast funding and flexible repayment. Qualified applicants must have a social security number, an active checking account, and a verifiable source of income. This will give you an easy way to borrow the funds and allow you to pay small payments over the course of 6 to 12 months.

Review your budget
As you move forward it's important to get on track so that you don't let yourself fall into this type situation again. Some people have a budget but rarely stick to it. If this sounds like you, you are not alone. A budget is only effective when you follow it. Once you change out this and push that back you eventually run out of wiggle room on your monthly bills and then you're in the mess known as the paycheck to paycheck cycle. It's important to take a look at your bills and come up with a strategy to reduce your income to debt ratio as fast as possible. If your bills are less than your income, ending the paycheck to paycheck cycle can happen rather quickly by prioritizing your bills. For example, if you have credit cards, pay the smallest one off first and then move to the next one with the lowest balance.

Live frugal
One of the fastest ways to acquire money on a shoe-string budget is to learn to live frugally. This doesn't mean you have to make your own detergent, but it is possible. No, what it means is you give up some of your habits that cost more than you think. If you pass up on the morning hot latte, your afternoon lunch with the exception of Fridays and dine in most of the month, those few items can add up to hundreds per month. The best part of learning to live frugally is that you're not sacrificing your quality of life you're simply learning how to make every penny matter.

IRS e-file – When Will I Get My IRS Tax Refund (2017)?

If you are wondering when you can expect to receive your tax refund from the IRS, you are not alone. In past years, the IRS published a table where you could look up when your federal tax refund would be deposited in your bank account (by direct deposit), or when your check would be mailed. It seems that this document, Publication 2043, doesn't provide a table anymore. From previous years, the IRS reported that over 90% of refunds were issued in less than 21 days. The same results are expected in 2017.

You can also check the status of your income tax refund using this link. (And of course, en Español: ¿Dónde está mi reembolso?) You will need to enter your social security number, filing status, and refund amount to see your refund status.

I've heard some anecdotal stories about the IRS a long time to process refunds in the past. So I will be curious how the IRS does this time around.

If you haven't prepared your tax return yet, I encourage you to do so soon.

PFS

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