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Author: AskMyFinance Editorial Team

  • Citi Simplicity Card Review 2026: Best Card for Balance Transfers?

    The Citi Simplicity Card is one of the longest 0% APR offers available on a credit card. If you have existing credit card debt you want to pay off without interest, it deserves a close look.

    Citi Simplicity Card: Quick Summary

    • Annual fee: $0
    • Intro APR on purchases: 0% for 12 months from account opening
    • Intro APR on balance transfers: 0% for 21 months from first transfer date
    • Balance transfer fee: 3% (minimum $5) for transfers in the first 4 months; 5% after that
    • Regular APR: Variable, based on creditworthiness
    • Rewards: None
    • Late fee: $0 — no late fees ever
    • Penalty APR: None

    Why the Citi Simplicity Stands Out

    The 21-month balance transfer window is one of the longest available anywhere. If you have credit card debt at 20–30% APR, transferring to the Simplicity lets you pay down principal for nearly two years without additional interest charges.

    The no-late-fee policy is also unusual. Most cards charge $25–$40 for a late payment. The Simplicity card will not — though late payments can still hurt your credit score, so paying on time still matters.

    There is no penalty APR either. Many cards hike your rate to 29.99%+ after a late payment. The Simplicity card does not do this.

    The Math: How Much Can You Save?

    If you have $5,000 in credit card debt at 24% APR and you transfer it to the Citi Simplicity:

    • Balance transfer fee: $150 (3% of $5,000)
    • Interest you would have paid over 21 months at 24%: roughly $1,500–$2,000
    • Net savings: $1,350–$1,850

    Even after the transfer fee, you come out significantly ahead — as long as you pay off the balance before the intro period ends.

    How to Use It Correctly

    The strategy is straightforward: transfer your high-interest balances, divide the total by 21 months, and pay that amount every month. If you pay it all off before the intro period ends, you pay no interest.

    If you carry a balance when the 21 months ends, the remaining balance starts accruing interest at the regular APR. Make sure your payment plan gets you to $0 before the clock runs out.

    What the Citi Simplicity Does Not Offer

    The Simplicity card does not earn any cash back, points, or miles. Once you use it to pay off debt, it becomes a card with no rewards — essentially just a 0% APR emergency card with no annual fee.

    If your goal after clearing the debt is to earn rewards on everyday spending, you will want to open a separate rewards card.

    Who This Card Is Best For

    The Citi Simplicity Card is ideal for:

    • People carrying balances on high-APR credit cards who want to pay them down without interest
    • Anyone who has missed payments in the past and wants protection from late fees and penalty rates
    • People focused on debt payoff who do not want to manage rewards programs

    Who Should Look Elsewhere

    • If you want to earn rewards on purchases, look at the Citi Double Cash or Chase Freedom Unlimited instead
    • If you are looking for a 0% purchase APR for a large upcoming buy, the 12-month purchase APR window is decent but other cards offer 15–21 months on purchases too
    • If your credit score is below 670, approval is not guaranteed and you may get a higher regular APR

    How It Compares to Other Balance Transfer Cards

    Citi Simplicity vs. Citi Double Cash: The Double Cash offers 18 months on balance transfers and earns 2% cash back. Better for long-term use, but the Simplicity’s 21-month window beats it for strictly paying down debt.

    Citi Simplicity vs. Wells Fargo Reflect: The Reflect offers up to 21 months on both purchases and balance transfers with on-time payments, with a similar no-annual-fee structure. Worth comparing directly.

    Citi Simplicity vs. BankAmericard: The BankAmericard offers 21 billing cycles with no balance transfer fee for the first 60 days. If the fee matters more than the exact window length, that card is worth considering.

    Bottom Line

    The Citi Simplicity Card is one of the best tools available for paying off high-interest credit card debt. The 21-month 0% balance transfer APR, no annual fee, no late fees, and no penalty APR make it a simple, low-risk option. Use it as a debt payoff vehicle, not a rewards card, and have a plan to pay off the full balance before the intro period ends.

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  • What Is a Certificate of Deposit (CD)? How It Works in 2026

    A certificate of deposit (CD) is one of the safest ways to earn interest on your savings. Here is everything you need to know about how CDs work, what rates look like in 2026, and when they make sense for you.

    What Is a CD?

    A certificate of deposit is a savings account with a fixed interest rate and a fixed term. You deposit a lump sum, agree not to withdraw it for a set period (the term), and earn a guaranteed return. When the term ends, you get your original deposit plus the interest earned.

    Banks and credit unions offer CDs. They are insured by the FDIC (banks) or NCUA (credit unions) up to $250,000 per depositor, making them one of the lowest-risk savings vehicles available.

    How CDs Work

    1. You deposit money into a CD — typically a minimum of $500 to $1,000, though some banks have no minimum.
    2. You choose a term: anywhere from 3 months to 5 years.
    3. The bank pays a fixed annual percentage yield (APY) for the full term.
    4. At maturity (when the term ends), you receive your deposit plus interest.
    5. You can reinvest in a new CD or move the money elsewhere.

    CD Rates in 2026

    CD rates vary by bank, term length, and the broader interest rate environment. In 2026, high-yield CDs at online banks are offering competitive rates compared to traditional savings accounts at big banks.

    Online banks and credit unions typically offer the highest CD rates. Checking comparison sites like Bankrate or NerdWallet helps you find the best current rate for your preferred term.

    As a general rule, longer terms offer higher rates — but not always. Sometimes short-term CDs (3–6 months) offer better rates when banks are expecting rate cuts.

    What Happens If You Withdraw Early?

    Most CDs charge an early withdrawal penalty if you take money out before the term ends. Typical penalties range from 60 to 180 days of interest, depending on the bank and term length.

    For example, if a 1-year CD has a 90-day interest penalty and you withdraw at 6 months, you lose 90 days of interest from your total return.

    No-penalty CDs allow early withdrawals without a fee, but they typically offer slightly lower rates. They are a good option if you might need access to the funds.

    Types of CDs

    Traditional CD — fixed rate, fixed term, early withdrawal penalty. The most common type.

    No-penalty CD — lets you withdraw without a fee, usually after an initial lockup period of 6–7 days.

    Bump-up CD — allows you to request a rate increase once during the term if rates rise. Usually offered with lower starting rates.

    Step-up CD — the rate automatically increases at preset intervals during the term.

    Jumbo CD — requires a large minimum deposit (typically $100,000+) and may offer slightly higher rates.

    Brokered CD — purchased through a brokerage account. Can be sold on the secondary market before maturity, avoiding the early withdrawal penalty.

    CD Laddering Strategy

    A CD ladder splits your savings across multiple CDs with different maturity dates. For example, instead of putting $10,000 in a single 5-year CD, you put $2,000 each in 1-year, 2-year, 3-year, 4-year, and 5-year CDs.

    As each CD matures, you either use the funds or roll them into a new 5-year CD. This gives you:

    • Regular access to a portion of your money
    • Exposure to higher long-term rates
    • Protection against locking all your money in if rates rise

    When a CD Makes Sense

    CDs are a good fit when:

    • You have a specific savings goal with a known timeline (a vacation in 18 months, a down payment in 3 years)
    • You want a guaranteed return with zero risk
    • You have more savings than your emergency fund needs
    • You are nearing retirement and want to protect principal

    When a CD May Not Be the Right Move

    • You might need the money before the term ends
    • You want to keep money accessible for opportunities
    • High-yield savings accounts are offering comparable rates without locking up funds
    • You have high-interest debt — paying that down beats CD returns

    CD vs. High-Yield Savings Account

    The main difference: a HYSA lets you access your money anytime, while a CD locks it up for the term. In exchange for the lockup, CDs typically offer slightly higher rates — though in some rate environments the gap is small.

    For an emergency fund, a HYSA wins because you need access. For money you will not touch for a year or more, a CD may offer a better guaranteed return.

    Bottom Line

    A CD is a simple, low-risk way to earn more interest than a standard savings account on money you will not need for a defined period. Compare rates at online banks, consider a CD ladder if you have a larger amount to save, and make sure you understand the early withdrawal penalty before you commit.

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  • How to Track Your Net Worth in 2026: A Step-by-Step Guide

    Your net worth is the clearest picture of your financial health. It is the one number that tells you whether you are moving forward or falling behind. Here is how to calculate it and how to track it over time.

    What Is Net Worth?

    Net worth is what you own minus what you owe:

    Net Worth = Total Assets – Total Liabilities

    A positive net worth means you own more than you owe. A negative net worth (common early in life due to student loans) means you owe more than you own.

    The goal is not to hit some specific number — it is to make the number grow over time.

    Step 1: List Your Assets

    Assets are everything you own that has monetary value.

    Liquid assets (easy to access):

    • Checking account balance
    • Savings account balance
    • Cash

    Investment assets:

    • 401(k), IRA, Roth IRA balances
    • Brokerage account balances
    • Pension value (if applicable)
    • Crypto holdings

    Physical assets:

    • Home value (use Zillow or Redfin for an estimate)
    • Car value (use Kelley Blue Book)
    • Other property

    Add them all up. That is your total assets.

    Step 2: List Your Liabilities

    Liabilities are everything you owe.

    • Mortgage balance
    • Car loan balance
    • Student loan balance
    • Credit card balances
    • Personal loan balances
    • Medical debt
    • Any other debt

    Add them all up. That is your total liabilities.

    Step 3: Calculate the Difference

    Subtract liabilities from assets. The result is your current net worth.

    Example: $180,000 in assets – $95,000 in liabilities = $85,000 net worth.

    Do not panic if the number is negative or lower than you expected. The point is to have a baseline to improve from.

    Step 4: Track It Over Time

    The real value of tracking net worth comes from watching it change over months and years. Update your calculation monthly or quarterly. You do not need daily precision.

    What you are looking for:

    • Is the number growing?
    • Which liabilities are shrinking fastest?
    • Are your investments compounding?
    • Did a large expense set you back — and have you recovered?

    Tools for Tracking Net Worth

    Spreadsheet — A simple Google Sheet with a “Date” column and columns for each account works well. Update monthly. Free and fully customizable.

    Monarch Money — Links to your accounts automatically and calculates net worth in real time. Paid ($99/year) but comprehensive.

    Personal Capital (Empower) — Free net worth dashboard that pulls in all your accounts. Popular for tracking investment accounts alongside checking and savings.

    YNAB — Focuses more on budgeting but includes a net worth view if you use it consistently.

    What Your Net Worth Number Tells You

    Net worth does not tell you everything. A 28-year-old with $50,000 in net worth who is maxing their 401(k) every year is in great shape. A 55-year-old with $50,000 in net worth who is five years from retirement is in trouble.

    Context matters. Use benchmarks as rough guides:

    • Age 30: aim for 1x your annual salary in net worth
    • Age 40: aim for 3x your annual salary
    • Age 50: aim for 6x your annual salary
    • Age 60: aim for 8–10x your annual salary

    These are guidelines, not rules. Your situation is unique.

    How to Grow Your Net Worth

    Net worth grows in two ways: adding to assets and reducing liabilities.

    • Increase income and invest the difference
    • Pay down high-interest debt aggressively
    • Avoid lifestyle inflation as your income rises
    • Let compounding do its work over time

    Bottom Line

    Tracking net worth takes about 30 minutes to set up and 10 minutes per month to maintain. It is the single best metric for measuring financial progress. Start today, update regularly, and let the number motivate your decisions throughout the year.

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  • How to Avoid Overdraft Fees in 2026: 8 Simple Strategies

    Overdraft fees averaged $26.61 per transaction in 2026. If you overdraft a few times a month, you could be handing your bank hundreds of dollars a year. Here is how to stop paying them.

    What Is an Overdraft Fee?

    An overdraft fee is charged when you spend more than your account balance. The bank covers the transaction but charges you for the service. Some banks charge up to $35 per transaction. If multiple transactions overdraft in a single day, you can be hit with multiple fees.

    1. Switch to a Bank That Does Not Charge Overdraft Fees

    The simplest fix is choosing a bank that does not charge overdraft fees in the first place. Several banks now offer fee-free overdraft or simply decline transactions that would overdraw your account.

    Banks with no overdraft fees include Ally Bank, Chime, and many credit unions. These accounts decline over-limit transactions rather than charging you for them.

    2. Set Up Low Balance Alerts

    Most banks let you set up text or email alerts when your balance falls below a threshold you choose. Set an alert at $100 or $200 — enough warning to transfer money before you overdraft.

    This costs nothing and takes two minutes to set up in your bank’s app.

    3. Link a Savings Account as Overdraft Protection

    Many banks offer free overdraft protection if you link a savings account. When you spend more than your checking balance, the bank automatically transfers funds from savings to cover it. Some banks charge a small transfer fee ($5–$10), but it is far less than a full overdraft fee.

    Check your bank’s app or call to enable this if you have not already.

    4. Opt Out of Overdraft Coverage for Debit Card Purchases

    Under federal law, banks must get your permission (opt-in) before charging overdraft fees for debit card and ATM transactions. If you never opted in, these transactions are automatically declined when your balance is too low — no fee charged.

    If you opted in previously, you can opt out at any time by calling your bank or updating your account settings online.

    Note: this does not apply to checks or ACH transactions, which can still overdraft even without opt-in.

    5. Keep a Buffer in Your Checking Account

    Treat your real minimum balance as $100 or $200 instead of $0. When your “mental zero” is higher than your actual zero, you have a cushion that prevents accidental overdrafts from small timing errors.

    6. Use a Budgeting App

    Apps like YNAB (You Need A Budget) or Monarch Money track your spending in real time and show you exactly how much is available before bills hit. When you can see your upcoming expenses mapped against your balance, you know ahead of time if something will be short.

    7. Move Your Payday to Align With Your Bills

    If your biggest bills land right before payday, you may regularly run low for a day or two. Many employers and gig platforms now offer flexible pay schedules or early direct deposit. Getting paid two days early through your bank (Chime, Ally, and others offer this) can eliminate the gap entirely.

    8. Ask Your Bank to Waive the Fee

    If you overdraft for the first time or overdraft rarely, call your bank and ask them to waive the fee. Banks do this regularly for customers in good standing. A polite 2-minute phone call can save you $30. If they say no, ask again — or switch to a bank that does not charge overdraft fees.

    What About Overdraft Lines of Credit?

    Some banks offer a formal overdraft line of credit — essentially a small loan attached to your checking account. You pay interest on what you borrow, but the rate is usually much lower than the cost of repeated flat fees. If your bank offers this, it is worth considering as a backup.

    Bottom Line

    Overdraft fees are optional expenses. By switching to a fee-free bank, setting up alerts, linking a savings account, and keeping a small buffer, you can eliminate them entirely. The steps take less than an hour and the savings add up fast.

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  • How to Start Investing With $100: A Beginner’s Guide for 2026

    You do not need thousands of dollars to start investing. With $100 and a smartphone, you can open a brokerage account and buy your first investment today. Here is how to make the most of a small starting amount.

    Why Starting Small Still Matters

    The most important factor in building wealth is time in the market, not the size of your first deposit. A $100 investment that earns 8% per year for 30 years grows to about $1,006. But if you wait 10 years to start, that same $100 invested for 20 years only grows to $466.

    Starting small and adding consistently beats waiting until you have “enough.”

    Step 1: Build a $500–$1,000 Emergency Fund First

    Before investing, keep at least one month of expenses in a high-yield savings account. Investing money you might need in three months means you could be forced to sell at a loss.

    If you already have a cushion, skip ahead.

    Step 2: Choose the Right Account

    The account type matters as much as what you invest in.

    Roth IRA

    If you have earned income and meet the income limits, a Roth IRA is one of the best places to invest. Contributions are made with after-tax dollars, but growth and withdrawals in retirement are tax-free. You can contribute up to $7,000 in 2026.

    401(k)

    If your employer offers a 401(k) with a match, contribute enough to get the full match before investing anywhere else. The match is an immediate 50–100% return.

    Taxable Brokerage Account

    No tax advantages, but no limits on contributions and no restrictions on when you can withdraw. Good for goals before retirement age.

    Step 3: Pick a Brokerage With No Minimums

    Several major brokerages let you open an account with $0 and buy fractional shares, meaning you can own a piece of any stock or ETF regardless of price.

    Good options for beginners include Fidelity, Schwab, and Robinhood. All offer $0 commission trades and fractional shares.

    Step 4: What to Buy With $100

    For most beginners, a broad market index ETF is the right move. These funds hold hundreds of companies in a single investment, giving you diversification from day one.

    Popular options:

    • VTI (Vanguard Total Stock Market ETF) — owns every publicly traded U.S. company
    • VOO (Vanguard S&P 500 ETF) — tracks the 500 largest U.S. companies
    • SCHB (Schwab U.S. Broad Market ETF) — similar to VTI with a very low expense ratio

    These ETFs have expense ratios under 0.05%, meaning you pay less than $5 per year on a $10,000 investment.

    What to Avoid With a Small Starting Amount

    Individual stocks — picking single stocks is hard even for professionals. With $100, putting it all in one company creates unnecessary risk.

    Crypto — high volatility and speculation. Treat it as entertainment money, not a retirement strategy.

    High-fee funds — any mutual fund or ETF with an expense ratio above 0.5% is taking too much of your return.

    Step 5: Automate and Add More Over Time

    Set up automatic contributions from your paycheck or bank account. Even $25 or $50 per month on top of your initial $100 compounds significantly over time.

    $100 starting balance + $50/month for 30 years at 8% = $74,518.

    The habit matters more than the amount.

    Beginner Mistakes to Avoid

    • Checking your portfolio daily and reacting to short-term moves
    • Selling during a market dip — that locks in losses
    • Waiting for the “right time” to invest — time in the market beats timing the market
    • Forgetting to invest your tax refund or bonus

    Bottom Line

    Starting with $100 is not a limitation — it is a starting point. Open a Roth IRA or brokerage account at a no-minimum broker, buy a low-cost index ETF, and set up automatic contributions. The hardest part is starting. Everything else follows from that first $100.

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  • How to Lower Your Tax Bill in 2026: 12 Legal Strategies

    Nobody wants to pay more in taxes than they have to. The good news: there are plenty of legal ways to reduce what you owe. These strategies work whether you are a salaried employee, a freelancer, or a small business owner.

    1. Max Out Your 401(k) or IRA

    Every dollar you put into a traditional 401(k) or IRA lowers your taxable income for the year. In 2026, the 401(k) contribution limit is $23,500 ($31,000 if you are 50 or older). The IRA limit is $7,000 ($8,000 if you are 50 or older).

    If your employer offers a match, contribute at least enough to get the full match. That is free money on top of the tax savings.

    2. Contribute to an HSA

    A Health Savings Account (HSA) gives you a triple tax advantage: contributions are tax-deductible, growth is tax-free, and withdrawals for qualified medical expenses are tax-free. In 2026, you can contribute up to $4,300 for self-only coverage or $8,550 for family coverage.

    You must be enrolled in a high-deductible health plan (HDHP) to qualify.

    3. Claim Every Deduction You Are Entitled To

    Most people take the standard deduction — $15,000 for single filers and $30,000 for married filing jointly in 2026. But if your itemized deductions exceed those amounts, itemizing saves you more.

    Common itemized deductions include:

    • Mortgage interest
    • State and local taxes (up to $10,000)
    • Charitable contributions
    • Medical expenses above 7.5% of your adjusted gross income

    4. Use a Flexible Spending Account (FSA)

    If you have access to a Flexible Spending Account through your employer, use it. FSA contributions come out of your paycheck before taxes, reducing your taxable income. You can use the funds for medical expenses, dental care, and vision costs.

    The 2026 FSA contribution limit is $3,300. Watch the use-it-or-lose-it rules — most plans require you to spend the balance by year end.

    5. Harvest Tax Losses

    If you have investments that have lost value, selling them lets you claim a capital loss on your return. Those losses offset capital gains dollar for dollar. If losses exceed gains, you can deduct up to $3,000 against ordinary income and carry the rest forward to future years.

    This strategy is called tax-loss harvesting and works best in taxable brokerage accounts.

    6. Give to Charity the Smart Way

    Cash donations are deductible, but donating appreciated stock is even better. You avoid paying capital gains tax on the appreciation and still get to deduct the full market value. Many large brokerages make this easy with a few clicks.

    If you are 70.5 or older, a Qualified Charitable Distribution (QCD) from your IRA lets you give up to $105,000 directly to charity without counting it as taxable income.

    7. Time Your Income and Deductions

    If you expect to be in a lower tax bracket next year, consider deferring income to January. If you expect to be in a higher bracket next year, pull income forward into this year. The same logic applies to deductions — bunch them into the year where they give you the most benefit.

    8. Deduct Home Office Expenses

    If you are self-employed and use part of your home exclusively for business, you can deduct a portion of your rent or mortgage interest, utilities, and internet. The simplified method allows a deduction of $5 per square foot up to 300 square feet.

    Employees working from home for a company generally cannot claim this deduction under current tax law.

    9. Deduct Business Expenses If You Are Self-Employed

    Freelancers, contractors, and small business owners can deduct ordinary and necessary business expenses. Common deductions include:

    • Software subscriptions
    • Marketing and advertising
    • Professional services (accountant, lawyer)
    • Business-use portion of your vehicle
    • Business travel
    • Health insurance premiums

    Keep receipts and a mileage log. The IRS standard mileage rate in 2026 is 70 cents per mile for business use.

    10. Contribute to a 529 Plan

    529 contributions are not deductible on your federal return, but many states allow a state income tax deduction for contributions. If you have kids or grandkids you plan to help with college, this is worth checking for your state.

    11. Convert to a Roth When Your Income Is Lower

    A Roth IRA conversion moves money from a traditional IRA to a Roth. You pay taxes on the converted amount now, but all future growth and withdrawals are tax-free. Converting in a low-income year — after retirement, between jobs, or early in your career — minimizes the tax hit.

    12. Work With a CPA Before Year End

    The best tax moves happen before December 31, not when you are filing in April. A CPA or tax advisor can help you model different scenarios, catch deductions you missed, and time moves to minimize your bill.

    The fee for tax planning often pays for itself many times over in savings.

    Bottom Line

    Lowering your tax bill is not about loopholes — it is about using the tools the tax code already gives you. Max out your retirement accounts, use tax-advantaged savings accounts, track your deductions, and time your income strategically. Start now rather than waiting until filing season.

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  • Credit Union vs Bank: Which Is Better for You in 2026?

    Banks and credit unions both offer checking accounts, savings accounts, loans, and other financial services. But they work very differently — and choosing the right one can save you money and improve your banking experience.

    What Is a Credit Union?

    A credit union is a nonprofit financial institution owned by its members. When you join a credit union and deposit money, you become a part-owner. Profits are returned to members in the form of higher savings rates, lower loan rates, and lower fees.

    Credit unions are typically organized around a shared community — your employer, a profession, a geographic area, or a religious organization. Membership requirements vary by credit union.

    What Is a Bank?

    A bank is a for-profit financial institution owned by shareholders. Its goal is to generate profit for those shareholders. Banks earn money by charging interest on loans, collecting fees, and investing deposits.

    Banks range from small community banks to large national institutions like Chase, Bank of America, and Wells Fargo. Anyone can open an account at a bank — there are no membership requirements.

    Key Differences: Credit Union vs Bank

    Ownership Structure

    Credit union: Nonprofit, member-owned. Each member has an equal vote regardless of deposit size.

    Bank: For-profit, shareholder-owned. Decisions are made to maximize profit.

    Interest Rates

    Credit unions often offer better rates than banks on both savings and loans. Because they are nonprofit, they do not need to generate profit — so they pass savings on to members.

    That said, online banks have become highly competitive. Many online banks now match or beat credit union savings rates. If you are looking for the highest savings rate, compare both credit unions and online banks.

    Fees

    Credit unions tend to charge fewer and lower fees. Monthly maintenance fees, overdraft fees, and ATM fees are often lower or waived entirely for members.

    Traditional banks often charge higher fees, though many have eliminated monthly fees for accounts that meet minimum balance requirements.

    Membership Requirements

    Credit union: You must qualify for membership. Common requirements include working for a specific employer, living in a certain area, or being a member of a particular organization. Many credit unions allow family members of existing members to join.

    Bank: Anyone can open an account. No eligibility requirements beyond passing an identity verification and ChexSystems check.

    Products and Services

    Credit union: Offers most standard banking products — checking, savings, CDs, auto loans, mortgages, and credit cards. Smaller credit unions may offer fewer products than large banks.

    Bank: Large banks offer a wider range of products, including investment accounts, business banking, international services, and specialized loans.

    Technology and Convenience

    Large banks typically have more robust mobile apps, larger ATM networks, and more branch locations. Credit unions have traditionally lagged in technology, though many have improved significantly in recent years.

    Many credit unions participate in shared branching and shared ATM networks, which can give you access to thousands of locations nationwide without fees.

    FDIC vs NCUA Insurance

    Bank deposits are insured by the FDIC (Federal Deposit Insurance Corporation) up to $250,000 per depositor per account category.

    Credit union deposits are insured by the NCUA (National Credit Union Administration) up to the same $250,000 limit. Both offer equivalent protection — so your money is equally safe at either institution.

    When a Credit Union Is the Better Choice

    Consider a credit union if you:

    • Want better rates on auto loans, personal loans, or mortgages
    • Prefer lower fees and more personalized service
    • Qualify for membership at a credit union with strong rates and technology
    • Value a nonprofit, member-owned structure

    When a Bank Is the Better Choice

    Consider a bank if you:

    • Want no-hassle account opening with no membership requirements
    • Travel frequently and need a large ATM network
    • Need advanced banking features like international wire transfers or business accounts
    • Prefer the mobile app experience of a large bank or online bank

    Can You Use Both?

    Many people use both. You might keep a checking account at a large bank for the convenience and ATM access, while using a credit union for a car loan or a high-yield savings account.

    There is no rule that says you must pick just one. Use the institution that offers the best product for each need.

    How to Find a Credit Union

    You can search for credit unions you qualify for at MyCreditUnion.gov or use the NCUA credit union locator. Enter your employer, location, or affiliation to see which credit unions you are eligible to join.

    The Bottom Line

    Credit unions often offer better rates and lower fees, but require membership eligibility. Banks offer wider product selection and convenience, but charge more. Online banks have changed the equation — many now offer high savings rates with no fees, making them a strong third option.

    Compare rates and fees based on what you actually need: a checking account, a savings account, or a loan. The best bank or credit union is the one that serves your specific situation at the lowest cost.

    Related: Best online banks for 2026 | Best high-yield savings accounts | Best CD rates

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  • What Is a Treasury Bill (T-Bill)? How to Buy T-Bills in 2026

    A Treasury bill, or T-bill, is a short-term debt security issued by the U.S. federal government. It is one of the safest investments you can make — backed by the full faith and credit of the U.S. government. T-bills have become very popular with everyday investors since interest rates rose in recent years.

    How Treasury Bills Work

    T-bills are sold at a discount to their face value. When the bill matures, the government pays you the full face value. The difference between what you paid and what you received is your return.

    For example: You buy a $1,000 T-bill for $975. When it matures in 26 weeks, you receive $1,000. Your gain is $25, which represents your interest income.

    T-bills do not pay periodic interest like bonds. All the return comes at maturity.

    T-Bill Maturities

    Treasury bills come in several maturities:

    • 4 weeks (about 1 month)
    • 8 weeks (about 2 months)
    • 13 weeks (about 3 months)
    • 17 weeks (about 4 months)
    • 26 weeks (about 6 months)
    • 52 weeks (about 1 year)

    The shorter the maturity, the more liquid the investment. Many investors “ladder” T-bills by buying different maturities so that some bills mature every few weeks, providing regular access to cash.

    T-Bill Yields

    T-bill yields change based on market conditions and Federal Reserve policy. When the Fed raises interest rates, T-bill yields typically rise too.

    T-bill yields are quoted as an annualized rate. A 26-week T-bill with a 5% annualized yield does not earn 5% in 6 months — it earns roughly half that over the 6-month period.

    Are T-Bills Safe?

    T-bills are considered one of the safest investments in the world. The U.S. government has never defaulted on its debt. Your principal is guaranteed as long as you hold the bill to maturity.

    Unlike savings accounts, T-bills do not have FDIC insurance — but they have something better: a direct government guarantee. The risk of loss is essentially zero if held to maturity.

    If you sell a T-bill before maturity, you could receive more or less than you paid, depending on where interest rates have moved. Holding to maturity eliminates this price risk.

    T-Bills vs High-Yield Savings Accounts

    Both T-bills and high-yield savings accounts are safe ways to earn interest on cash. The main differences:

    • Liquidity: High-yield savings accounts let you access money anytime. T-bills lock up money until maturity (though you can sell early on the secondary market).
    • Yield: T-bill yields are often competitive with or higher than top savings account rates.
    • Taxes: T-bill interest is exempt from state and local income taxes. Savings account interest is fully taxable at the federal, state, and local levels. For people in high-tax states, this can make T-bills more attractive.

    How to Buy Treasury Bills

    Through TreasuryDirect

    The easiest way to buy T-bills directly from the government is through TreasuryDirect.gov. You create an account, link your bank account, and purchase T-bills directly.

    Minimum purchase is $100. T-bills are sold at auction on a regular schedule. You can also set up automatic reinvestment so your T-bills automatically roll over into new bills when they mature.

    Through a Brokerage

    You can also buy T-bills through most major brokerage accounts, including Fidelity, Schwab, Vanguard, and others. Brokerages give you access to both new-issue auctions and the secondary market, where you can buy existing T-bills before they mature.

    Buying through a brokerage is convenient if you already have an investment account. You can manage T-bills alongside your stocks and bonds in one place.

    Through Treasury ETFs

    If you want T-bill exposure without buying individual bills, consider a short-term Treasury ETF. These funds hold a portfolio of T-bills and pay monthly interest. Examples include the iShares 0-3 Month Treasury Bond ETF (SGOV) and the SPDR Bloomberg 1-3 Month T-Bill ETF (BIL).

    Tax Treatment

    T-bill interest is:

    • Subject to federal income tax
    • Exempt from state and local income taxes

    You report T-bill interest in the year it matures (not the year you bought it). TreasuryDirect and your brokerage will send you a 1099-INT form for any interest earned.

    Who Should Invest in T-Bills?

    T-bills are a good fit for:

    • People who want a safe place to park cash for 1 to 12 months
    • Investors building an emergency fund who want to earn more than a typical savings account
    • Retirees who want capital preservation with competitive yields
    • Residents of high-tax states who benefit from state tax exemption

    T-bills are not ideal for money you might need immediately, since they lock up your cash until maturity. For truly liquid savings, a high-yield savings account or money market account is a better fit.

    The Bottom Line

    Treasury bills offer safety, competitive yields, and a state tax advantage. They are a solid choice for short-term cash you do not need immediately. With TreasuryDirect.gov, buying T-bills takes less than 10 minutes to set up.

    If you are not sure whether T-bills, high-yield savings, or CDs are right for your cash, compare rates and terms before deciding. See our guides on best CD rates and best high-yield savings account rates.

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  • What Is Whole Life Insurance? How It Works and How It Compares to Term Life

    Whole life insurance is a type of permanent life insurance that covers you for your entire life. Unlike term life insurance, which expires after a set period, whole life never runs out — as long as you pay your premiums.

    It also builds cash value over time, which you can borrow against or withdraw. This combination of lifetime coverage and a savings component makes whole life more expensive than term life, but it serves a different purpose.

    How Whole Life Insurance Works

    When you buy a whole life policy, you agree to pay a fixed premium every month or year. Part of that premium covers the cost of insurance. The rest goes into a cash value account that grows over time.

    The cash value grows at a guaranteed rate set by the insurance company. It grows tax-deferred, meaning you do not pay taxes on the growth each year.

    Your beneficiaries receive a death benefit when you die. This is the amount the policy pays out. With whole life, the death benefit stays the same throughout your life.

    What Is Cash Value?

    Cash value is a savings component built into whole life policies. As you pay premiums, a portion accumulates in this account. Over many years, it can grow to a significant amount.

    You can access your cash value in several ways:

    • Policy loan: Borrow against the cash value. The loan does not require credit approval. You pay it back with interest, or the unpaid balance is deducted from the death benefit.
    • Withdrawal: Take money out directly. Withdrawals up to your cost basis are tax-free. Excess withdrawals may be taxable.
    • Surrender: Cancel the policy and receive the cash value (minus surrender charges and taxes).

    In the early years, very little cash value builds up because most of your premium covers fees and the cost of insurance. Cash value grows more meaningfully after 10 to 15 years.

    Whole Life vs Term Life Insurance

    Coverage Length

    Term life: Covers you for a specific period — usually 10, 20, or 30 years. If you die after the term ends, no death benefit is paid.

    Whole life: Covers you for your entire life. As long as you pay premiums, your beneficiaries will receive the death benefit.

    Cost

    Whole life insurance premiums are typically 5 to 15 times higher than term life for the same death benefit. A $500,000 term life policy for a healthy 35-year-old might cost $30 per month. A $500,000 whole life policy for the same person could cost $400 to $700 per month.

    Cash Value

    Term life has no cash value. Whole life accumulates cash value over time.

    Complexity

    Term life is simple — you pay a premium, you are covered, the policy pays a death benefit if you die. Whole life has more moving parts: premium allocation, cash value growth rates, policy loans, and surrender values.

    Types of Permanent Life Insurance

    Whole life is the most common type, but there are others:

    • Universal life: More flexible premiums and death benefits, but less guaranteed cash value growth
    • Variable life: Cash value is invested in sub-accounts (like mutual funds) — higher growth potential, but also risk of loss
    • Indexed universal life: Cash value growth is tied to a market index, with a floor to prevent losses

    Who Should Consider Whole Life Insurance?

    Whole life insurance is not the right choice for most people. Term life covers most families’ needs at a fraction of the cost.

    Whole life may make sense if you:

    • Have a permanent financial dependent (such as a child with special needs)
    • Have a large estate and need life insurance for estate planning purposes
    • Have maxed out other tax-advantaged savings (401(k), IRA) and want additional tax-deferred growth
    • Own a business and need key-person or buy-sell agreement insurance

    For most people — especially those with families and mortgages — term life insurance is the more practical and cost-effective choice.

    Pros of Whole Life Insurance

    • Guaranteed lifetime coverage
    • Fixed premiums that never increase
    • Tax-deferred cash value growth
    • Policy loans do not require credit checks
    • Death benefit is generally income-tax-free for beneficiaries

    Cons of Whole Life Insurance

    • Much more expensive than term life
    • Cash value grows slowly in early years
    • Returns on cash value are typically lower than investing in index funds
    • Complexity makes it easy to misunderstand what you are buying
    • Surrender charges can be steep if you cancel early

    The Bottom Line

    Whole life insurance provides permanent coverage and builds cash value, but at a high cost. For most families, buying term life insurance and investing the difference is a better strategy.

    If you are considering whole life, compare quotes from multiple insurers and consult with a fee-only financial advisor who does not earn commissions on insurance sales. This helps ensure you get objective advice.

    See also: Best life insurance companies for 2026 | What is term life insurance?

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  • What Is a Co-Signer on a Loan? Pros, Cons, and What to Know

    A co-signer is someone who agrees to be legally responsible for a loan if the primary borrower fails to make payments. Adding a co-signer can help you qualify for a loan or get a lower interest rate — but it comes with serious risks for both parties.

    What Does a Co-Signer Do?

    When you apply for a loan and do not meet the lender’s requirements on your own — because of low credit, limited credit history, or low income — the lender may require a co-signer.

    The co-signer’s credit history and income are considered alongside yours. If your co-signer has strong credit, you are more likely to be approved and may receive a better interest rate.

    If you stop making payments, the lender can come after your co-signer. The full debt becomes their responsibility.

    Co-Signer vs Co-Borrower

    These terms sound similar but they are different.

    A co-signer is a backup. They are only responsible if the primary borrower defaults. They typically do not have ownership rights to whatever the loan was used for.

    A co-borrower (or joint borrower) shares equal responsibility for the loan from day one. They also typically share ownership of the asset. A spouse on a joint mortgage is a co-borrower, not a co-signer.

    When Do You Need a Co-Signer?

    Lenders may require a co-signer when:

    • You have no credit history (common for young people or recent immigrants)
    • You have a low credit score (typically below 620 for most lenders)
    • Your income is too low to qualify for the loan amount you need
    • You have a history of missed payments or defaults

    Common loans that use co-signers include student loans, auto loans, personal loans, and apartment lease agreements.

    Benefits of Having a Co-Signer

    • Easier approval: Lenders are more willing to approve risky borrowers when a creditworthy co-signer backs the loan
    • Lower interest rate: A stronger co-signer can help you qualify for a lower rate, saving you money over the life of the loan
    • Credit building opportunity: If you make all payments on time, the loan helps build your credit history

    Risks for the Co-Signer

    Co-signing is a major financial commitment. Before agreeing to co-sign, every co-signer should understand these risks:

    • Full legal responsibility: If the primary borrower does not pay, the lender will demand payment from the co-signer
    • Credit damage: Late payments and defaults appear on the co-signer’s credit report, not just the borrower’s
    • Debt-to-income impact: The loan shows up on the co-signer’s credit report as their debt, which can affect their ability to get their own loans
    • Limited control: The co-signer does not receive the loan funds or own the asset, but bears full financial risk

    Risks for the Primary Borrower

    • Relationship damage: If you miss payments and hurt your co-signer’s credit, it can permanently damage the relationship
    • Pressure to perform: Someone else’s financial wellbeing depends on your ability to pay

    How to Get a Co-Signer Removed

    There are a few ways to remove a co-signer from a loan:

    1. Refinance: Apply for a new loan in your name only once your credit and income have improved. The new loan pays off the old one, releasing the co-signer.
    2. Co-signer release: Some lenders allow co-signers to be released after you make a certain number of on-time payments (commonly 12 to 24 months). Check your loan agreement for details.
    3. Pay off the loan: Once the loan is paid in full, the co-signer’s obligation ends.

    What Co-Signers Should Do Before Agreeing

    • Review your own financial situation — can you afford to repay this loan if the borrower cannot?
    • Read the full loan terms before signing anything
    • Set up alerts so you are notified if a payment is late
    • Have an honest conversation with the borrower about expectations and consequences

    Alternatives to a Co-Signer

    If you cannot find a co-signer or do not want to put someone in that position, consider these options:

    • Secured loan: Offer collateral (a car, savings account) to reduce the lender’s risk
    • Credit builder loan: Specifically designed to help you build credit history from scratch
    • Secured credit card: Build credit with a small deposit as collateral
    • Improve your credit first: Spend six to twelve months paying down existing debt and building credit before applying

    Related: Best personal loans for bad credit | What is a credit builder loan? | How to dispute a credit report error

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