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☆ The average tax refund is over $3,000. Here are 7 ways to put it to good use
▼ + stars: | 2024-03-15 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

New York CNN —The average federal tax refund is more than $3,000, according to the latest data from the IRS. … They don’t understand how much interest they’re paying,” Russ said. Create or add to an emergency fundYou can use your refund to start or bolster an emergency fund. If you have high-rate debt and you’re lacking emergency savings, Russ suggested you might use a portion of your refund to attack your debt and the other portion to create an emergency fund. If you need the money within three years, you might consider putting your refund in certificates of deposits and US Treasury bonds.

Persons: you’re, ”, Eric Bronnenkant, Keyana Russ, ” Russ, Russ, Bronnenkant, Roth, Bronnenkant, Charles Schwab, ” Bronnenkant Organizations: New, New York CNN, Ponds Financial, Invest, Roth IRA, Treasury Locations: New York, Ponds

☆ Inexpensive ways to access emergency funds
▼ + stars: | 2024-03-11 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +7 min

And while surveys indicate that there are plenty of people in just such a situation, there are some inexpensive and safe ways to access emergency funds. putting it on a credit card but paying that bill in full when it comes due). An earlier survey by Bankrate, meanwhile, found that two-thirds of US adults worried they don’t have enough emergency savings to cover them if they lost their primary source of income. Her bills were piling up and she had already accrued high credit card balances from her years in school. To make the next emergency expense less stressful and costly, you can build emergency savings with small amounts consistently over time.

Persons: Bankrate.com, Bankrate, Noah Damsky, ”, Marcel Miu, ” Miu, Daisy Martini, she’d, Rodney Williams, Martini, “, Damsky, Linda Grizely Organizations: New, New York CNN, Federal Reserve, Marina Wealth Advisors, New York City’s Department of Education, Financial Locations: New York, New

☆ After Biden praises progress on inflation in State of the Union, economists weigh in
▼ + stars: | 2024-03-08 | by ( Jessica Dickler | ) www.cnbc.com time to read: +1 min

In his State of the Union address, President Joe Biden celebrated his administration's progress in the fight against inflation. "Wages keep going up and inflation keeps coming down," Biden said in the annual speech before Congress. Inflation has cooled while wages have ticked higher, but households are still struggling to keep up with the increased cost of living. However, "it is difficult to tell people that inflation isn't so bad as it was, given that it has taken about one-fifth of purchasing power away from people," he said. The consumer price index, a key inflation barometer, has fallen gradually from a 9.1% pandemic-era peak in June 2022 to 3.1% in January.

Persons: Joe Biden, Biden, Mark Hamrick Organizations: Finance Locations: California

☆ These surprise sources of income could cost you during tax season
▼ + stars: | 2024-02-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Investors are celebrating a year of easy-to-obtain interest income, but the Tax Man will want his slice this spring. Institutions report interest income of $10 or more to their customers and the Internal Revenue Service on Form 1099-INT . For instance, you can be on the hook for an accuracy-related penalty of 20% of the underpayment of the tax. Interest income from these I bonds is subject to federal income tax, but investors don't receive it until they redeem the bond or it matures. "It might be worth it to buy the MLP and pay the tax," Kearns said.

Persons: Elizabeth Buffardi, Buffardi, you'll, Jerrod Pearce, Adam Markowitz, Brian Kearns, Kearns Organizations: Internal Revenue Service, IRS, CPA, Creative Planning, Luminary, CFP, Haddam, Advisors, MLP Locations: Oak Brook , Illinois, Overland Park , Kansas, Windermere , Florida, Evanston , Illinois

☆ Lower rates help homebuyers more than cardholders: Bankrate's Ted Rossman
▼ + stars: | 2024-01-31 | by ( ) www.cnbc.com time to read: 1 min

Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailLower rates help homebuyers more than cardholders: Bankrate's Ted RossmanTed Rossman, senior industry analyst at Bankrate.com, joins 'The Exchange' to discuss how rates affect home prices, the outlook for homebuyers, and more.

Persons: Ted Rossman Ted Rossman

☆ How America racked up a $1 trillion credit card bill
▼ + stars: | 2023-12-03 | by ( Delon Thornton | ) www.cnbc.com time to read: +1 min

Americans have accumulated a record-breaking $1 trillion in credit card debt. This comes as the Federal Reserve's interest rate hikes have caused average interest rates for credit cards to spike to more than 22%. Rates on retail credit cards are even higher, nearing 29% on average. However, big box retailers like Macy's and Nordstrom have issued warnings about a slowdown in repayments on their credit cards over the summer, highlighting a potential risk to retail revenue this holiday season. Watch the video above to find out more about how Americans' credit card debt ballooned past the $1 trillion threshold, and whether U.S. consumers can keep spending enough to keep a looming recession at bay.

Persons: Tedd Rossman, Nordstrom Organizations: National Retail Federation

☆ Rates may have hit their peak. How to get the biggest bang out of cash heading into 2024
▼ + stars: | 2023-11-27 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +5 min

"It's important to keep sharing this idea to do something with your cash; these rates won't be here forever." Municipal money market funds Rather than tying up money in CDs or T-bills, Sachs prefers municipal money market funds for investors in the highest income tax brackets. Vanguard's Municipal Money Market Fund (VMSXX) has a 7-day SEC yield of 3.53% and carries an expense ratio of 0.15%. Residents in high-tax locales may also want to consider state-specific muni market funds, which have the additional benefit of providing income that's free of state taxes. For instance, there's the Vanguard California Municipal Money Market Fund (VCTXX) and the Fidelity New York Municipal Money Market Fund (FSNXX) .

Persons: –, Catherine Valega, Sallie Mae, Jeremy Keil, Keil, There's, Charles Sachs, Kaufman, Sachs, Michael Bloom Organizations: Federal, Green Bee, Synchrony, Financial, Keil Financial Partners, Federal Deposit Insurance Corp, FDIC, ., CFP, Money Market Fund, SEC, Residents, Vanguard, Fidelity New York Municipal Money Market Fund Locations: Winchester , Massachusetts, New Berlin , Wisconsin, Miami, Vanguard California

☆ The Federal Reserve leaves rates unchanged. Here's what that means for your wallet
▼ + stars: | 2023-11-01 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

watch nowThe Federal Reserve left its target federal funds rate unchanged for the second consecutive time Wednesday. What the federal funds rate means for youThe federal funds rate, which is set by the central bank, is the interest rate at which banks borrow and lend to one another overnight. To a certain extent, many households have been shielded from the brunt of the Fed's rate hikes so far, House said. As the federal funds rate rose, the prime rate did as well, and credit card rates followed suit. If the 10-year yield stays near 5%, federal student loan interest rates could increase again when they reset in the spring, costing student borrowers even more in interest.

Persons: Brett House, that's, Sung Won Sohn, Sohn, bode, Greg McBride, Sam Khater, Freddie Mac's, Tiffany Hagler, Bankrate, Jacob Channel Organizations: Federal Reserve, Fed, Columbia Business School, Loyola Marymount University, SS Economics, Treasury, Geard, Bloomberg, Getty, Auto Locations: Larchmont , New York

☆ Federal Reserve Meeting Fed Expected to Keep Rates on Hold
▼ + stars: | 2023-11-01 | by ( Jeanna Smialek | ) www.nytimes.com time to read: +7 min

The Fed last raised its benchmark rate, the federal funds rate, in July to a range of 5.25 to 5.5 percent. In recent weeks, the long-term market rates that influence many types of consumer and business loans have drifted higher, even as the Fed left its key rate on hold. Car LoansHigher loan rates have been dampening auto sales, particularly in the used-car market, because loans are more expensive and prices remain high, experts said. Used-car rates were even higher: The average loan carried an 11.4 percent rate in September, matching a high set earlier in the year. Home-equity lines of credit and adjustable-rate mortgages — which each carry variable interest rates — generally rise within two billing cycles after a change in the Fed’s rates.

Persons: ”, Anna N’Jie, Bankrate.com, Matt Schulz, Jonathan Smoke, that’s, Freddie Mac, Ken Tumin, DepositAccounts.com Organizations: Federal Reserve, Fed, Re, LendingTree, Cox Automotive, Treasury, Savings Vehicles Savers, Consumers, DepositAccounts.com Locations: LendingTree

☆ How the long-awaited recession became a 'richsession' for America's wealthy
▼ + stars: | 2023-10-25 | by ( Delon Thornton | ) www.cnbc.com time to read: +1 min

Sticky inflation, white-collar layoffs, and surging interest rates are all putting pressure on a certain type of American — higher-income earners. The same year, 1.8 million Americans lost their millionaire status, according to UBS' 2023 Global Wealth Survey. Bank of America's Consumer Checkpoint Survey for September 2023 found that high-income households have become more pessimistic about the economy. The same group also appears more cautious about spending because of soft wage growth and slowing job creation for high earners. Watch the video above to find out more about how the so-called "richcession" could affect the entire economy.

Persons: Greg McBride Organizations: UBS, Survey, Bank of America's Locations: U.S

☆ Americans ran up $105 billion in credit card interest last year alone
▼ + stars: | 2023-10-25 | by ( Matt Egan | ) edition.cnn.com time to read: +5 min

New York CNN —Danielle Foskie is among a growing number of Americans who have stumbled into a credit card doom loop. She turrned to credit cards to get by, eventually racking up $60,000 in credit card debt. Americans were hit with $105 billion in credit card interest last year alone, according to the CFPB’s biennial consumer credit card report. As signs of consumer stress emerge, the credit card industry continues to perform well financially. The report also warned of an “apparent lack of competition” on credit card rates.

Persons: Danielle Foskie, I’ve, ” Foskie, She’s, Renee Barrett, ” Barrett, Barrett, “, ”, Rohit Chopra Organizations: New, New York CNN, CNN, Financial, “, New York Fed Locations: New York, Cleveland , Ohio, United States, Bronx, Covid

"When the 10-year yield goes up, it will have a knock-on effect for almost everything," according to Brett House, economics professor at Columbia Business School. There are many factors driving the recent spike in Treasury yields, economists said. Most of the recent jump in Treasury yields is due to a so-called term premium, said Andrew Hunter, deputy chief U.S. economist at Capital Economics. Student loans could get pricierThere is also a correlation between Treasury yields and student loans. The government sets the annual rates on those loans once a year, based on the 10-year Treasury.

Persons: Jerome Powell, Mark Hamrick, Brett House, Andrew Hunter, Hunter, Tony Dwyer, Canaccord Genuity, Freddie Mac, Eugenio Aleman, Raymond James Organizations: Federal, Stock, Fed, Columbia Business School, Treasury, Capital Economics Locations: U.S

☆ As mortgage rates hit 8%, home 'affordability is incredibly difficult,' economist says
▼ + stars: | 2023-10-20 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +2 min

Lifestylevisuals | E+ | Getty ImagesHow home affordability has changedIn August 2020, the typical monthly mortgage payment was $1,581, based on an average interest rate of 2.94%, Redfin found. Nowadays, the typical U.S. homebuyer's monthly mortgage payment is $2,866, according to Redfin — an all-time high. "In the next year or two years, interest rates will be lower, and people will have the ability to refinance." That said, competition for homes on the market is likely to be worse in a few years as interest rates cool, she said. "When interest rates come down, everyone's going to come back to the marketplace," said Cohn.

Persons: Redfin, homebuyers, Mark Hamrick, Alicia Huey, Melissa Cohn, William Raveis, Cohn Organizations: Bankrate.com, Istock, Federal Reserve, CNBC, William Raveis Mortgage Locations: U.S, Birmingham , Alabama, New York

"When the 10-year yield goes up, it will have a knock-on effect for almost everything," according to Columbia Business School economics professor Brett House. Why Treasury yields have jumpedA bond's yield is the total annual return investors get from bond payments. There are many factors driving the recent spike in Treasury yields, economists said. Student loans could get pricierThere is also a correlation between Treasury yields and student loans. The government sets the annual rates on those loans once a year, based on the 10-year Treasury.

Persons: Jerome Powell, Mark Hamrick, Brett House, Andrew Hunter, Hunter, Freddie Mac, Eugenio Aleman, Raymond James Organizations: Treasury, Columbia Business School, Fed, Capital Economics Locations: U.S

☆ Keep your sweetened CD yields going with this maneuver
▼ + stars: | 2023-10-18 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

The one-year Treasury bill is yielding 5.47% Wednesday, and one-year CDs at some institutions offer annual percentage yields exceeding 5%. "It always makes sense to look at the landscape," said Danika Waddell, a certified financial planner and founder of Xena Financial Planning. Ally Financial and Bread Financial are among the institutions offering a higher renewal rate for customers who stick around. Consider that about a year ago, the average one-year CD had an APY of less than 1%, according to Bankrate.com . Consider that Synchrony Financial has an 11-month no-penalty CD that offers a 4.5% APY, while its 12-month standard CD yields 5.1%.

Persons: Danika Waddell, Morgan Stanley, Banks, Betsy Graseck, Mark Hamrick, It's, Waddell, Michael Bloom Organizations: Federal Reserve, Treasury, Investors, Xena, PNC, WFC, Bankrate.com, Ally, Federal Deposit Insurance Corp Locations: JPM

Retail sales increased 0.7% in September, driven by nonstore retailers and spending at food and drinking establishments, the Census Bureau reported on Tuesday. Even after stripping out autos, as some analysts do, the increase was 0.6%, way above estimates of a 0.2% gain. As long as those trends remain positive, consumers will feel they have the wherewithal to continue shopping. “Consumer spending has been fairly flat over the last two months,” according to Bank of America Institute’s Consumer Checkpoint October report. However, the wages and salaries of higher-income households are still growing at slower rates than other income cohorts.”Many retailers will be looking to the critical holiday season for a boost in sales.

Persons: ”, Ted Rossman Organizations: Census, Bankrate.com, “, Federal Reserve, Employers, Labor Department, Bank of America, ” Bank of America, Cyber, Signifyd’s Commerce

☆ Beware these debt-laden stocks breaking down under the weight of higher rates
▼ + stars: | 2023-10-05 | by ( Lisa Kailai Han | ) www.cnbc.com time to read: +7 min

Stocks have sold off as Wall Street accepted that the Federal Reserve might keep interest rates higher for longer to crush inflation. Corporate debt refinancings are going to start hitting profits more urgently starting in 2024, according to Wolfe Research chief investment strategist Chris Senyek. "[T]hat higher interest expense is likely to create a $5-$7/share headwind for S & P 500 operating EPS in 2024," Senyek said. Stocks have sold off as Wall Street accepted that the Federal Reserve might keep interest rates higher for longer to crush inflation. "[T]hat higher interest expense is likely to create a $5-$7/share headwind for S&P 500 operating EPS in 2024," Senyek said.

Persons: Stocks, Chris Senyek, —, Senyek, LSEG, RC Willey, George Frey, BAX Baxter, Lockheed Martin, Kellogg Organizations: Labor Department, Wall, Federal Reserve, Wolfe Research, CNBC, General Motors, United Auto Workers, GM, Whirlpool, Kellogg, RC, Bloomberg, Getty, Equity, Lockheed, AEP American Electric Power, Dominion Energy, Motors, Duke Energy, VZ Verizon Communications, Nasdaq, Stock Screener, Whirlpool Corp Locations: Draper , Utah

☆ Record inflows are expected this year in money market funds. Here are the top yielding plays
▼ + stars: | 2023-09-25 | by ( Michelle Fox | ) www.cnbc.com time to read: +2 min

Americans continue to flock to money market funds, attracted by yields the assets haven't seen in years. In fact, retail investors in money market funds have grown 40% over the past year, said Peter Crane, founder of Crane Data, a firm that tracks money markets. They also account for almost 40% of the whole money fund pie, up from 33% a year ago, he said. "They will keep hitting records, there is no doubt of that," Crane said of money market fund inflows. Here are the top yielding government money market funds, per Crane Data, as of July 31, the latest data available.

Persons: Shelly Antoniewicz, Antoniewicz, Peter Crane, Crane, givens Organizations: Bank of America, Investment Company Institute, Assets, ICI, Crane

Since the central bank kicked off its policy-tightening campaign in March 2022 — boosting interest rates 11 times — income investors have benefited from higher yields on Treasurys, money market funds and certificates of deposit. "From here, even if rates go higher you are locking in some really good income." If you're willing to sacrifice a little bit of liquidity, select banks will pay even higher yields. Drivers of those increases include higher-for-longer interest rates, and competition from Treasurys and money market funds, Graseck added. Money market funds Rates on money market funds have also jumped substantially since the rate-hiking campaign started.

Persons: Greg McBride, reinvest, US2Y, Treasurys, Sameer Samana, Sallie Mae, Morgan Stanley's Betsy Graseck, Graseck, — CNBC's Michael Bloom, Nick Wells Organizations: Federal Reserve, Fed, Treasury, Wells, Wells Fargo Investment Institute, Savings, Synchrony, Bread Financial, Investment Company Locations: maturities, Wells Fargo

☆ The Federal Reserve leaves rates unchanged. Here's how it impacts your money
▼ + stars: | 2023-09-20 | by ( Jessica Dickler | ) www.cnbc.com time to read: +3 min

As the federal funds rate rose, the prime rate did as well, and credit card rates followed suit. The average rates for a 30-year, fixed-rate mortgage "remain anchored north of 7%," said Sam Khater, Freddie Mac's chief economist. Already, the average rate for a HELOC is up to 9.12%, the highest in 22 years, according to Bankrate. Student loansFederal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves. But undergraduate students who take out new direct federal student loans are now paying 5.50% — up from 4.99% in the 2022-23 academic year and 3.73% in 2021-22.

Persons: that's, Matt Schulz, Sam Khater, Freddie Mac's, Greg McBride Organizations: Treasury, Bankrate.com, LendingTree

☆ How to get an even higher CD rate than you see advertised
▼ + stars: | 2023-09-19 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Higher yields on certificates of deposit are out there, but you'll have to venture beyond your favorite bank to get them. "There could be as much as a 50-basis point difference going to a brokered CD," he said. Brokered vs. bank offerings With a bank CD, the investor goes directly to the institution to buy the instrument. For instance, brokered CDs purchased via Vanguard begin at 1 to 3 months and go out beyond 10 years. The value of the CD will fluctuate with interest rates, with the price declining as yields run higher.

Persons: Malcolm Ethridge, Greg McBride, McBride, Ethridge, Michael Bloom Organizations: Wealth, Vanguard, Bankrate.com . Bank, Federal Deposit Insurance Corp Locations: Rockville , Maryland

☆ The Federal Reserve may not hike interest rates this week. What that means for you
▼ + stars: | 2023-09-18 | by ( Jessica Dickler | ) www.cnbc.com time to read: +4 min

Artistgndphotography | E+ | Getty ImagesThe Federal Reserve is likely to skip an interest rate hike when it meets this week, experts predict. The central bank has already raised interest rates 11 times since last year — the fastest pace of tightening since the early 1980s. The average rates for a 30-year, fixed-rate mortgage "remain anchored north of 7%," said Sam Khater, Freddie Mac's chief economist. Auto loan rates top 7%Even though auto loans are fixed, payments are getting bigger because the price for all cars is rising along with the interest rates on new loans. Federal student loans are now at 5.5%Federal student loan rates are also fixed, so most borrowers aren't immediately affected by the Fed's moves.

Persons: Greg McBride, that's, Sam Khater, Freddie Mac's, McBride Organizations: Finance, Money, Homeowners, U.S, Treasury, Auto Locations: LendingTree, Federal

☆ What Happens When Wall Street Buys Most of the Homes on Your Block?
▼ + stars: | 2023-09-16 | by ( Ronda Kaysen | Ella Koeze | ) www.nytimes.com time to read: +21 min

Alvin and Patricia Maisonet bought their house in Bradfield Farms almost a decade ago. Bradfield Farms fit the bill: It is in an area that, in 2020, was 35 percent Black and 11 percent Latino, according to census data. Tarchia Barber chose to rent in Bradfield Farms because of the neighborhood’s rural feel. The RentersTarchia Barber liked the rural feel of Bradfield Farms, with cul-de-sacs and shady streets surrounded by farmland and woods. A school bus drops off students in Bradfield Farms, a quiet neighborhood where parents say their children often roam freely.

Persons: Ronda Kaysen, Ella Koeze, Logan Cyrus Sept, “, Alvin Maisonet, Maisonet, Patricia Maisonet, Joggers, ”, Alvin, Kelli Enos, Cash, can’t, Laurie Goodman, “ Covid, David Howard, Keith R, Madeline Bankson, They’re, Jessica Moreno, Tarchia Barber, Barber, He’d, Nikki Sloup, Sloup, Becky Johnson, didn’t, Johnson, Jesus ”, Greg McBride, Hall, Brandon Little, Keller Williams, Bradfield, “ We’ve, Jade Rahmani, Keefe, “ It’s, ” Mr, Rahmani, Enos, ” Dana Hartness, James M, Hasty, Ms, Lisa Damas, Kasey, Jim Sylvester, Sylvester, Hartness, —, — she’s, Dana Hartness, She’s Organizations: →, HomeRiver, Investor, Vegas, Kansas City, Antonio, Houston, Investors, New York Times, Homeowners, “, Bradfield Farms, Charlotte Airport, NORTH, NORTH CAROLINA, SOUTH, CAROLINA SOUTH, Bradfield, Housing Finance, Center, Urban Institute, National Rental Home, Rentals, Florida State University, Equity, Bankrate.com, Sheree, Nationwide, Facebook, Mecklenburg Police Locations: Ronda, Charlotte, N.C, Bradfield Farms, Bradfield, Paterson , N.J, United States, ATTOM, Atlanta, Phoenix, Memphis, Birmingham, Ala, Orlando, Fla, Jacksonville, Tampa, Kansas, Mo, NORTH CAROLINA, CAROLINA SOUTH CAROLINA, “, American, North Carolina, New Jersey, Peru

☆ Women will accept $66,000 a year to take a new job — while men hold out for more than $90,000
▼ + stars: | 2023-09-06 | by ( Jessica Dickler | ) www.cnbc.com time to read: +5 min

For men, the average lowest wage they would be willing to accept for a new job is $91,048, about $25,000 more than the average women would accept, which currently stands at $66,068. Regarding her first job as a senior analyst in 2017, El-Amin said, "I was offered $68,000, I countered and asked for $72,000," she said. In her most recent role, El-Amin, now 28, earned $200,000, she said. Negotiate for higher pay Differences in the way women and men approach negotiating their pay has played a role in the gender pay gap, research shows. "Women tend to look for mentors and men tend to look for sponsors who will help them negotiate," she said.

Persons: Cinneah El, Amin, I've, El, Barnard, Aronstein, Trevor Bogan, Bogan, Laurie Chamberlin, Chamberlin, Alex Gailey Organizations: New, Federal, Barnard, Columbia University, Finance, Pew Research Center, Top Employers Institute, Adecco, Mentors, Gallup Locations: El

☆ If you want to know where the economy is headed, don't watch the Fed. Track this interest rate instead. Anything above 4% is bad.
▼ + stars: | 2023-08-03 | by ( Alistair Barr | ) www.businessinsider.com time to read: +4 min

I watch the 10-year Treasury yield every weekday morning. If the 10-year Treasury bond yield stays around 4.1%, the cost of these mortgages could rise in coming days and set new 20-year highs. The 10-year Treasury bond yield is a common way to do this discounting. If the 10-year Treasury yield is 4%, that $10 billion is suddenly worth a whole lot less in today's money. This is often why tech stocks fall when the 10-year Treasury bond yield spikes.

Persons: that's, it's, United States FRED, Louis Organizations: Treasury, Service, Federal Reserve, Auto, Federal Reserve Bank of St, Stock, Nasdaq Locations: Wall, Silicon, United States

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