Updated April 2024. Navy Federal Credit Union is the nation’s largest credit union, with a long history of serving active military members. More recently, they have expanded their field of membership to include veterans and family members of veterans. NavyFed often offers special rates and/or features on their share certificates. Here’s a recent example:

• Limited-Time 18-month EasyStart Certificate at 4.70% APY. Open with as little as $50. No maximum balance. Make additional deposits any time. You also get a single early withdrawal with no penalty.

I opened one with the $50 minimum because I thought the optionality was neat. If rates drop drastically, I’ll have the ability to add unlimited additional funds at 4.70% APY. If rates rise drastically, I can withdraw it all at once with no penalty. If nothing big happens (most likely scenario), I’ll only have committed $50. I already have other products with NavyFed, so it didn’t require any additional paperwork.

A flexible alternative to a traditional bank account is getting better. The Fidelity Cash Management Account (CMA) is a brokerage account that also includes traditional bank features like ACH routing and account numbers, Billpay, mobile check deposit, physical checks, and ATM/debit cards.

Perhaps a lesser-known fact is that the standard “Fidelity Account” is a brokerage account that also offers ACH routing/account numbers, Billpay, mobile check deposit, checkwriting, and an ATM/debit card. One of the major additions to the CMA (and missing from the standard Fidelity Account) is that you get unlimited ATM fee rebates, worldwide:

Your account will automatically be reimbursed for all ATM fees charged by other institutions while using a Fidelity® Debit Card linked to your Fidelity Cash Management Account at any ATM displaying the Visa®, Plus®, or Star® logos. The reimbursement will be credited to the account the same day the ATM fee is debited from the account. Please note that there may be a foreign transaction fee of 1% that is not waived, which will be included in the amount charged to your account.

One of the major drawbacks to the CMA was that the only option for the core position was their “FDIC-insured Deposit Sweep”, currently paying 2.72% APY (as of 4/21/24). While better than the 0.01% many other brokers offer on cash sweeps, this yield is much lower than that of the money market fund options available in the standard Fidelity account. To get around this, many people used the auto-draft feature that lets you set the standard Fidelity brokerage account as the backup funding source, and then kept a minimal or zero balance inside the CMA.

Perhaps Fidelity noticed this activity as well, or perhaps they noticed certain 5% APY cash offerings from competitors, because in less than two months (June 15, 2024), the CMA is adding the Fidelity Government Money Market Fund (SPAXX) an a core position option. If you have a Fidelity Cash Management Account and look at the “Additional Information and Endnotes” section of your March 2024 statement, you should find the following notice. This has also been confirmed by an official Fidelity representative on the r/Fidelity Subreddit. From my statement:

Please note that on or around June 15, 2024, you’ll have the option to elect Fidelity(R) Government Money Market Fund (SPAXX) as your core sweep investment vehicle. You will not need to take any action if you wish to retain the Bank Sweep as your core position. For additional information on your core position options, including the current yields on the Bank Sweep and money market funds, please visit Fidelity.com/spend-save/fidelity-cash-management-account/overview and FundResearch.Fidelity.com/mutual-funds/summary/31617H102.

The 7-day yield of SPAXX is 4.95% as of 4/19/24, significantly higher than the 2.72% FDIC-insured sweep. Money market mutual funds are unable to offer FDIC insurance, but they are still heavily-regulated by the SEC to hold very conservative and liquid investments. “Government” money markets have even stricter requirements, and that is why they are used as cash sweep funds. I personally lose zero sleep over holding cash in a money market fund run by a reputable firm like Fidelity, Vanguard, or Schwab.

This is a positive development for those that use the Fidelity CMA, especially if your state doesn’t have income taxes on investment interest that create an incentive to hold money market funds with mostly interest from Treasury bonds. If you do live in such a state, you should know that in 2023 neither Fidelity Government Money Market Fund (SPAXX) nor Fidelity® Treasury Money Market Fund (FZFXX) met the minimum investment in U.S. government securities required to exempt the distribution from tax in California, Connecticut, and New York. (Despite having Treasury in the name, FZFXX only had about 20% in eligible Treasury interest.) These are the core positions available in the standard Fidelity Account.

As such, residents of California, Connecticut, and New York may want to hold the Fidelity Treasury Only Money Market Fund (FDLXX), as it did meet those requirements in 2023 with roughly 90% of interest eligible for exemption. This is not a core option so you do have to buy this mutual fund manually, although the CMA account will sell it automatically to meet any cash demands that come up later. But still, if you forget for a few days, the interest difference is much smaller between SPAXX and FDLXX.

I am definitely switching over my core position as soon as I can. June 15th, 2024 is a Saturday, so I’ll check on Friday the 14th and then Monday the 17th. You can switch over manually by logging into Fidelity.com, going to “Accounts & Trade”,” Account Positions”, and then “Cash”. You should then see the button to “Change Core Position”.

Capital One has brought back a deposit promotion worth up to $1,500 for new 360 Savings accountholders. It’s a good bonus, but only for “new” customers and those that are willing to keep an eye on things. Here’s their definition of “new”:

If you have or had an open 360 Performance Savings, 360 Savings, 360 Money Market, Savings Now or Confidence Savings account as a primary or secondary account holder with Capital One on or after January 1, 2022, you will be ineligible for the bonus. If your account is in default, closed or suspended, or otherwise not in good standing, you will not receive the bonus.

Note: Some readers have reported in the past that they were not able to apply the promo code even as valid new customers, and Capital One responded that this was a targeted promotion even though there is no such language on the offer page nor in the terms and conditions. After applying, I would contact them and make sure that the promo code “BONUS1500” was accepted before making a large deposit for this promo.

The steps:

• Open a new 360 Performance Savings account with promo code BONUS1500 on or after April 3, 2024.
• Deposit $20,000+ of external funds during the 15-day Initial Funding Period after opening your account.
• Hold the deposit(s) in your account for an additional 90 days after the 15-day Initial Funding Period ends.
• $20,000+ deposited = $300 bonus.
• $50,000+ deposited = $750 bonus.
• $100,000+ deposited = $1,500 bonus.
• See the bonus in your new account within 60 days after holding.
• You’ll also earn their normal interest rate (variable, but currently 4.25% APY as of 4/17/24). No monthly fees or minimum balance requirements.

Note that the 90-day “maintain balance” period is after and in addition to the end of the 15-day “initial funding period”. So if you are counting from the opening day, that is a total of 105 days after opening. This is important as other readers have gotten denied for the bonus when withdrawing after 91-100 days. You may wish to chat with Capital One to confirm the exact date.

As long as you hit the tiers exactly, you are getting 1.5% of your deposit with technically a minimum holding period of 90 days, but you’ll probably want to send it in a little early and take it out a little late to be safely within the deadlines. Let’s call it 120 days for a conservative round number. This works out to the equivalent of (a little more than) a 4.5% annualized yield. If you assume the current 4.25% APY holds, that would be an estimated 4.5% + 4.25% = 8.75% annualized yield for those 120 days.

A 4-month CD at nearly 9% APY is not bad if you have a lot of money and a short-term horizon for it. Again, this one is only for new customers or those that have closed their previous CapOne360 savings-type accounts by January 1, 2022.

Updated with new offer. Axos Bank has a $300 bonus with relatively straightforward requirements using promo code FREEDOM300. You must open a new Cashback Checking account by 7/31/2024 and fund within 30 days of account opening. Set up direct deposit of $1,000+ each calendar month, and that will earn you $100 per month for 3 months ($300 total). Historically, they have been pretty flexible on what is considered direct deposit.

The fine print:

To be eligible to earn all or a portion of the cash incentive as part of the “FREEDOM300″ $300 promotion, an Axos Bank CashBack Checking account that includes the promotional code ” FREEDOM300″ must be opened between November 1, 2023, at 12 a.m. PST and July 31, 2024, at 11:59 p.m. PST. Axos Bank reserves the right to limit each primary account holder to one (1) checking account promotional offer per year, and customers who have held primary ownership of an Axos Bank or Axos Bank for Nationwide checking account at any time in the past 12 months may be disqualified from the “FREEDOM300” offer. Promotional terms and conditions are subject to change or removal without notice. Bonus cash may be taxable and reported on IRS Form 1099-MISC. Consult your tax advisor. After meeting the initial requirements mentioned above, the amount of cash bonus earned will depend on meeting the additional requirements outlined below:

To earn up to a $300 bonus, you must be approved for your new Axos Bank CashBack Checking account, fund it within 30 days of account opening, and have qualifying direct deposits that total at least $1,000.00 each calendar month. A cash bonus of up to $300 can be earned in the following manner during the first four (4) statement cycles. A statement cycle is a calendar month consisting of the days your account was open during that month. A maximum of three (3) payouts of $100 for each calendar month that the CashBack Checking account is receiving the direct deposit requirement, the bonus can be earned during the first four (4) statement cycles, and the bonus will be deposited into your Axos Bank CashBack Checking account within 10 business days following the end of the statement cycle in which the direct deposit requirement was met. Your Axos Bank CashBack Checking account must be open and in good standing at the time the bonus is paid to be eligible to receive the bonus, and your Axos Bank CashBack Checking account must remain open for 120 days, or an early closure fee of up to $300 may apply, equal to the amount of the total bonus earned up to $300.

I’ve done a few Axos Bank bonuses in the past (too recent for me to qualify for this), and the good news is that they do pay out reliably in my experience.

Updated with new bonus details. First Tech Federal Credit Union has a new $300 checking bonus. This new promo is set to run through 6/30/24, but is specifically for their new Reward Checking account that pays up to 5.00% APY (on up to $15,000 balance) if you meet a bunch of different hoops including 20 debit card transactions with $500+ in monthly spend. However, you can still get the $300 without meeting the 5.00% APY requirements. This promo is also valid for existing First Tech Rewards checking account owners who have not set up a direct deposit yet.

Here’s how to make it happen:

1) Open a First Tech Reward Checking account. Already have one? You’re set!
2) Set up a new payroll direct deposit to your First Tech Rewards Checking of $1,000+ per month for a minimum of three months.
3) Earn your $300 bonus!

When I applied for a previous promo, First Tech CU paid the $8 membership fee for the partner organization on my behalf so that I could join the credit union, although they mentioned it might be eventually be reported on 1099-INT. I did not experience a hard credit check, although they did a soft check on Experian.

The monthly requirements for earning the 5.00% APY interest (on up to $15,000 balance) are:

• 20 card transactions with $500+ in monthly spend.
• Electronic statements
• ACH / direct deposit $1,000+ monthly

Offer valid for enrollment between February 26, 2024 and June 30, 2024 for members without an existing direct deposit. Members with existing direct deposits or who are already enrolled in a First Tech direct deposit campaign are not eligible. Participant is defined as 18 years of age or older and the primary account owner on a First Tech Rewards Checking (FTRC) account. Direct deposits are considered new if there has been no direct deposit activity in the Participant’s share accounts on which they are the Primary Owner within the previous 18 months. Membership is required and is subject to approval. Fees could reduce earnings on the account. FTRC accounts must be personal accounts. Fiduciary, trust, business, or organization accounts are not eligible. Participant will be enrolled in the promotion upon receipt of new direct deposit transaction into the FTRC account (“Enrollment”). In order to receive any bonus payout, in addition to satisfying the payout conditions set forth in this disclosure, the Membership Savings account must be in good standing (not in default, closed, inactive, or otherwise not in good standing) during the period of time commencing with Enrollment and ending with the applicable date of payout. Any inquiries or disputes must be received by January 31, 2025.

New Direct Deposit Offer: New direct deposit must occur at least on New Direct Deposit Offer: New direct deposit must occur at least once per calendar month from the Participant’s employer payroll into the First Tech Rewards Checking (FTRC) account of which the Participant is the primary account owner. Direct deposits from a non-employer payroll source do not qualify. The monthly aggregate amount of all qualifying direct deposits must equal to at least $1,000 to earn the $300 bonus. Enrollment is the date of the initial direct deposit transaction. During the period of time commencing with Enrollment and ending 120 calendar days after Enrollment (“Enrollment Period”), at least one direct deposit transaction must occur each calendar month starting with the initial direct deposit transaction. A minimum of three direct deposit transactions must be received during the Enrollment Period. (EXAMPLE: If a member’s initial direct deposit is March 1, 2024, additional required direct deposits must occur at least once in each subsequent calendar month following the month in which the initial direct deposit is made, the last direct deposit must be received by June 29, 2024.) Only the Participant will receive credit for the direct deposits. Any qualifying bonus will be deposited to the Participant’s Membership Savings account the first week following the Enrollment Period. Bonuses will be considered dividends and may be reported on IRS form 1099-INT.

Updated with new offer. Truist Bank formed from the merger of BB&T and Suntrust Banks, now roughly the 10th largest US bank with branches in 17 states and DC. Trust has a new $400 checking bonus for new checking customers that have a mailing address within a state in their branch footprint: AL, AR, GA, FL, IN, KY, MD, MS, NC, NJ, OH, PA, SC, TN, TX, VA, WV or DC. I usually don’t list bonuses that aren’t nationwide, but this is a sizable bonus with a large regional bank. If I lived in this area, I’d certainly rather open an account when they are giving out 400 bucks. Here are the steps:

• Open a new Truist One Checking account online from 2/28/24 through 6/26/24. Minimum opening deposit is $50. Must open online with promo code TRUIST400DC24.
• Receive at least one qualifying Direct Deposit* of $500 or more, AND
• Complete at least 15 qualifying debit card purchases** within 90 days of account opening. All debit purchases must be posted to your account to qualify.

Note the following definitions for new customers:

Clients that are the primary account holder on an existing personal checking account with Truist or who have closed a personal checking account with Truist on or after 2/28/23 are not eligible to participate.

The Truist One Checking account has a $12 monthly maintenance fees that is waived each statement cycle by any one of the following:

• $500+ in total qualifying Direct Deposits
• Maintain a total combined ledger balance of $500 or more in Truist related accounts across personal deposits (excluding Truist HSA) and all investments as reflected on the business day before your statement cycle end date.
• Having a personal Truist credit card, mortgage or consumer loan, excluding LightStream®.
• Having a linked Small Business Checking Account.
• Students under the age of 25.

Greenlight is a popular reloadable debit card service for kids, where parents can manage and track their kids spending. You can also add an allowance, payments for recurring chores or one-time jobs, and teach them compound interest via “parent-paid interest”. I suppose its wise to show the kids how handle digital spending before the credit card offers arrive.

I decided to try out the new PSECU perk that offers the basic tier of Greenlight for free. (I did the PSECU $300 checking promo first.) You must enroll at Greenlight.com/PSECU and link a PSECU checking account in order to get the benefit. The “Greenlight Select” membership is a special tier for such partners, but is mostly comparable to the “Greenlight Core” tier on their website, which costs $4.99 a month. Included in the “Greenlight Select” membership:

• Debit Mastercards for up to 5 kids. Send money instantly and keep tabs on spending with real-time notifications.
• Educational app. The parents have their app where they get notified of every purchase, and the kids have their own app with educational games and short lessons (optional). Kids can divide their money into “savings” or “giving” baskets as well as create specific savings goals.
• Parental controls. Created automated allowance payments. Set category and store-level spending limits.
• 1% APY interest. This is the lowest tier and the lowest interest, although some other apps don’t pay any interest at all. You can get up to 5% APY on $5,000 if you upgrade to the $15/month tier.
• Roundup feature. You can set it to round up purchases to the next dollar and put the difference in a savings account.
• No overdraft fees. Does not allow overdrafts, so no overdraft fees.
• Banking services provided by Community Federal Savings Bank, member FDIC.

Teaching compound interest with higher interest rates. It can be hard to visualize compound interest at low interest rates, so parents can increase it by paying a higher “interest” rate out of their own pockets. For example, here is an illustration of $100 earning a 25% interest rate (paid by the parent) as opposed to a 5% interest rate. It makes the idea of earning interest on interest more immediate and tangible. Ideally, this can teach them that delayed gratification turns it into future rewards. You can set interest rates from 1% up to 100%.

Unfortunately, to add on investments, I would have to upgrade to the $10 a month tier or higher. If I had a teen ready for investing, I’d probably use the Fidelity Youth account instead (available for age 13-17 only, and my kids aren’t that old yet).

For kids under 13, I think that Greenlight would serve as a nice alternative to piggy banks. (Greenlight has no minimum age requirement.) While I suppose $5 a month isn’t a lot of money for all these features, I still like “free” better. After a few quick internet searches for “Greenlight Select”, I found multiple local banks and credit unions in my area that offered this free tier of service. If you plan on paying for it, there is $30 bonus available with a 1-month free trial (bonus not stackable with this free offer).