Getty Images 529 savings plans can be useful when saving for your child’s college education. However, if you’re reluctant to start saving because you don’t know whether your child will pursue a degree, a new rule is changing the savings game. Thanks to a bill known as Secure 2.0, starting in 2024 people can roll over up to $35,000 from their 529 savings plan to a Roth IRA. “It [529 rollovers] offers an option for those wondering what to do with unused assets,” says Rob Williams, managing...

With interest rates likely at their peak, it’s time to strike while the iron is hot. Federal Reserve Chair Jerome Powell has indicated that interest rates probably won’t go any higher and has even suggested rate cuts later this year. By investing money in cash equivalents, such as certificates of deposits (CDs), you can keep the interest payments flowing for years or even decades regardless of what the Fed does. Like traditional CDs, a brokered CD is a type of deposit account where you...

Getty Images On February 19, Capital One announced it would acquire Discover in an all-stock transaction worth $35.3 billion. Both companies are among the largest credit card issuers in the country while Capital One is the ninth-largest bank in the United States. While the deal may impact consumers in the future, according to a Capital One press release it won’t close until later this year or early 2025. For now, the companies are awaiting approval from regulators and shareholders, with the...

CD rates track the federal funds rate—the interest rate commercial banks charge each other to borrow money. When the Fed raises the federal funds rate, banks raise the interest rates on CDs to attract more depositors. Since CDs offer fixed interest rates, you may be tempted to lock in these higher rates while you can—especially with interest rates at record highs. But remember that CD interest is subject to taxes, which impacts your overall returns. Are CDs worth it right now? Thanks to the...

Checking accounts are useful for everyday spending, while savings accounts offer higher interest rates on people’s savings. Both of these accounts can be instrumental in helping you reach your financial goals, whether it’s building up your emergency fund or paying off your credit card bills. Checking vs. savings accounts There are a few important distinctions between checking and savings accounts. Checking accounts give you fast and easy access to cash, while savings accounts are good for...