Monday ended up being rather uneventful for the bond despite its role as the lead-off hitter for an all-star line-up. There were no significant economic reports on tap, but the 3yr Treasury auction managed to come in weak enough to prompt a bit of additional selling. Losses were short-lived and trading levels returned to pre-auction levels about 90 minutes later. That left a sideways-to-modestly-weaker tone intact for the day as traders wait for ultra-high consequence data and events on Wednesday.
09:58 AM
modestly weaker overnight and little-changed since then. MBS down 3 ticks (.09) and 10yr up 1.5bps at 4.476
01:40 PM
a bit weaker after 3yr Treasury auction. 10yr up 2.8bps in total on the day at 4.489. MBS are down an eighth of a point in 6.0 coupons
03:20 PM
Recovering some of the post-auction weakness now. MBS down 3 ticks (.09) and 10yr up 1.9bps at 4.48
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As expected by virtually all market participants, the Federal Reservemaintained its short-term policy interest rate between 5.25% and 5.5% at its June meeting that concluded Wednesday afternoon.
That’s the seventh consecutive time policymakers with the Federal Open Markets Committee (FOMC) kept the rates unchanged, reflecting mixed signals from the leading U.S. economic data. Job creation came in stronger than expected in May, but inflation slowed slightly.
According to the FOMC, “the risks to achieving its employment and inflation goals have moved toward better balance over the past year.” In recent months, there has been “modest” progress toward the 2% inflation target, but the economic outlook is “uncertain,” and the committee remains “highly attentive to inflation risks.”
“The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2%,” the FOMC said in a statement. “In addition, the Committee will continue reducing its holdings of Treasury securities and agency debt and agency mortgage‑backed securities.”
For mortgage companies, today’s Fed decision means that rates for home loans will remain at higher levels for longer. Following the release of inflation data on Wednesday morning, the 30-year fixed rate for conforming loans was at 7.18%, according to HousingWire’s Mortgage Rates Center.
All eyes are now on the Fed’s next moves. Officials no longer expect three rate cuts for 2024, as indicated in March. According to new economic projections, 11 policymakers expect no more than one rate cut this year since more evidence of a cooling economy is needed.
The data shows that eight participants estimate a target level for the federal funds rate of 4.875% at the end of 2024, compared to seven participants at 5.125% and four at 5.375%. Overall, the median for the federal funds rate is at 5.1%, compared to 4.6% in March, the new projections show.
Monetary policy watchers believe there is a 91.1% chance of rates staying unchanged in July, along with a 65.4% chance of a rate cut in September, according to the CME FedWatch Tool, which measures the likelihood of changes to rates at upcoming meetings.
Fed officials have consistently stated that economic data drives their decisions.
In May, the U.S. economy added 272,000 jobs, above the market consensus estimate of 180,000, per data released by the U.S. Bureau of Labor Statistics. But the unemployment rate was at 4%, the highest level since January 2022 and up from 3.7% one year earlier.
Meanwhile, the Consumer Price Index (CPI) cooled slightly in May, with the all-items index posting a 3.3% annual increase before seasonal adjustment, down from 3.4% in April. On a month-over-month basis, inflation remained flat, marking the first month without an increase since July 2022. In April, the index posted a month-over-month increase of 0.3%.
Fed officials are expecting higher inflation for 2024 than previously projected. PCE inflation is estimated at 2.6%, higher than 2.4% in March. Core inflation, which excludes food and energy, is estimated at 2.8%, up from 2.6% previously. Unemployment rate expectations remained unchanged at 4% from March to June.
“We need to see more good data to bolster our confidence that inflation is moving sustainably towards 2%,” Fed Chairman Jerome Powell told journalists during a conference on Wednesday afternoon. “It’s going to be not just the inflation rate readings; it’s going to be the totality of the data.”
According to Powell, reducing policy restraint too soon or too much could reverse the progress already made. Meanwhile, waiting too long would impact the U.S. economy.
But if the economy remains solid and inflation persists, Powell said the Fed is ready to “maintain the current range for the overall funds rate as long as appropriate,” adding that there’s no “commitment to a rate path.”
“It’s the full economic picture, not a singular factor, that will guide their decision,” First American deputy chief economist Odeta Kushi said in a statement.
“The FOMC will hold off on making any changes to the federal funds rate until inflation, and the factors that drive inflation, such as a more balanced labor market, make significant and sustained progress toward the Fed’s target, or there’s a significant decline in economic activity or worrisome weakness in the labor market.”
According to Kushi, the FOMC rate announcement itself is unlikely to significantly impact mortgage rates, but a more hawkish tone than markets anticipate can move them up further, or vice versa.
Realtor.com chief economist Danielle Hale said that “there are ample data points for both sides to factor into the debate” of where rates should be.
“Although recent inflation and labor market data have raised questions about whether additional increases in the Fed’s rate are necessary, I still expect the current rate to be sufficiently restrictive to bring inflation back to 2%, and updated economic projections suggest that Fed decision makers agree,” Hale said.
“For home shoppers and sellers, I expect that peak mortgage rates likely remain in the rearview, but volatility remains a risk, complicating moving decisions for home sellers, homebuyers, and renters alike,” she added.
Regarding the housing sector, Powell said that the situation is “complicated” and the best the Fed can do is “bring inflation down,” noting that the country will still have to deal with a housing shortage.
Editor’s note: This is a developing story and will be updated.
Because today, we taking a tour of an idyllic private island with a fully renovated, century-old mansion, a waterside guest cottage, a putting green, a tennis court, a resort-like pool, and formal gardens, among other desirable features.
Rogers Island, one of the largest Thimble Islands off the coast of Branford, Connecticut, offers all that for a hefty $35 million.
This 7.65-acre gem, featuring a circa 1902 Tudor mansion built by railroad baron John Jay Phelps and a host of luxurious amenities, promises unparalleled privacy and comfort, all just a short boat ride from the mainland.
Part of the Thimble Islands archipelago, the same one where Davis Island is located — and where President William Taft established his “Summer White House” for two years — the private island is reportedly owned by a hedge fund executive with ties to Ray Dalio’s Bridgewater Associates.
The Thimble Islands: A Connecticut treasure
The Thimble Islands are a picturesque archipelago located in Long Island Sound, off the coast of Branford, Connecticut. Comprising around 365 small islands, only 23 of which are inhabited, the Thimble Islands offer a unique blend of natural beauty and historical significance. These islands were named by early settlers who thought they resembled thimbles sticking out of the water.
The Thimble Islands have a storied past, with some dating back to the 17th century. They have been used for various purposes over the years, including farming, quarrying, and as private retreats. Today, they are known for their serene landscapes, charming cottages, and luxurious private estates.
Rogers Island is one of the largest in the archipelago
Each island has its own character and charm, making the Thimble Islands a sought-after destination for those seeking tranquility and seclusion, just a short boat ride from the mainland.
Rogers Island stands out from the other 364 small islands for several reasons. At 7.75 acres, it’s one of the largest in the archipelago, surpassed only by the 17-acre Horse Island (owned by Yale University), the 12-acre Money Island, a village in itself with 32 houses and a library, and the 10-acre Governor Island. It’s also one of the few inhabited, and one of the most expensive.
The Tudor-style property that anchors it
This island isn’t just about breathtaking views and seclusion; Rogers Island is anchored by a stunning Tudor-style mansion originally developed in 1902 by John Jay Phelps, a notable railroad baron and yachtsman.
The main house, measuring nearly 8,750 square feet, offers a blend of century-old architecture and modern design, featuring 10 bedrooms, 6 bathrooms, and 2 half-baths.
Heavily updated by the current owner
Several news outlets have identified the current owner as Greg Jensen, co-chief investment officer at Ray Dalio’s Bridgewater Associates, one of the largest hedge funds in the world.
Jensen purchased the island in 2018 for $21,500,000 from Edmund and Christine Stoecklein (nicknamed the Thimbles Lady, and known for collecting several islands — and trying to offload 8 of them all at once in 2017).
Under his ownership, Jensen has extensively renovated the mansion’s interiors and updated the island’s electrical systems, bringing modern convenience to this historic property. Known for his financial acumen, Jensen has transformed Rogers Island into a luxurious retreat, blending its rich history with contemporary comforts.
Luxurious living spaces abound
The main residence showcases spacious living areas with large windows and numerous fireplaces, giving it a warm and inviting ambiance.
The modern kitchen, renovated by Jensen, includes custom cabinetry, an eat-in island, and a daybed by the window, making it perfect for casual family meals or entertaining guests. The bedrooms, many of which are ocean-facing, provide serene views and a peaceful retreat.
See also: $16.5M miniature private island in the heart of Florida Keys
The many other buildings on the island
Beyond the main Tudor mansion, Rogers Island has several other impressive structures that add to its appeal. A 4-bedroom waterfront guest cottage with a charming wraparound porch offers additional accommodations for visitors.
For those who enjoy artistic pursuits, a dedicated artist’s studio provides a serene space to create.
The pool house complements the resort-like pool area, which is surrounded by stone terracing perfect for lounging and outdoor dining. A picturesque gazebo, perched directly on the rocks above the water, provides an ideal spot for relaxation and taking in the stunning views.
Amenities make the most of the idyllic location
The island’s amenities cater to every whim and desire. Sports enthusiasts will appreciate the fenced-in tennis court with a basketball hoop and the Jack Nicklaus-designed putting green.
Nature lovers can explore the lush formal gardens, meandering trails, and a serene koi pond. For those who love the water, there are three private beaches and two docks, perfect for swimming, boating, or simply relaxing by the sea.
Practical perks
Despite its seclusion, Rogers Island is fully equipped for modern living. The island has three septic systems, a generator, and a recently updated electrical system connected to the mainland.
Practical amenities include a greenhouse, staff quarters, three private beaches, and two docks, making Rogers Island a fully equipped and self-sufficient haven.
Currently listed for $35,000,000
Jennifer Leahy of Douglas Elliman, who holds the listing, emphasizes the unique appeal of Rogers Island. “Rogers Island is such a unique offering because you have almost every amenity imaginable at your fingertips,” she told the New York Post.
“Relax poolside, play a game of tennis, perfect your putting skills, or explore the incredible gardens and mature trees that adorn this 7.65-acre retreat.”
Neighboring islands for sale
Leahy is also selling several other islands in the Thimble Islands archipelago, including Belden Island for $2.75 million, Jepson Island for $1.5 million, and Burr Island for $1.3 million. Each offers its own slice of paradise, but Rogers Island stands out as the ultimate trophy property for those seeking a luxurious, secluded escape with endless amenities.
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As mortgage companies turn to artificial intelligence for some tasks, they’re under pressure to comply both with fair lending laws and emerging guidance around AI itself, and that’s raised questions for the industry and its vendors about how to approach the two.
“There’s a lot of noise around AI and fair lending,” said Tori Shinohara, a partner at Mayer Brown. “If you look at the consensus of interagency pronouncements around the use of responsible AI or the White House blueprint for an AI Bill of Rights, those all have anti-discrimination components.”
However, while there’s guidance in this area, there hasn’t been formal regulation, she noted.
“Federal regulators, including the prudential regulators, whenever they put guidance on AI, it almost always has some sort of anti-bias component to it. But in terms of true regulation, there isn’t anything out there yet that is specifically regulating the use of AI in mortgage lending for anti-discrimination purposes,” Shinohara said.
Whether there is formal regulation in this area on the horizon remains to be seen.
“I think the thought is the existing regulatory framework for fair lending: the Fair Housing Act, Equal Credit Opportunity Act, and state laws are sufficient to prevent discrimination in connection with AI and in mortgage lending or servicing, because they’re so broad and cover discrimination as a result of a model in addition to discrimination as the result of an individual decision,” she added.
So these two federal laws are what mortgage companies may want to prioritize in compliance, but mortgage professionals should take note that public officials and agencies are looking at fair lending in new ways too.
“Both laws require any aspects of a credit transaction to be fair, and historically that was interpreted as being just underwriting and pricing,” said Kareem Saleh, founder and CEO of Fairplay AI, in a separate interview. “But if you pay attention to the statements coming out of the federal regulators, there also now seem to be concerns about digital marketing and fraud.”
This means more layers of potential scrutiny of fintech providers in areas where AI is being applied such as customer outreach, Saleh said.
“I think that is a big consequence of this move toward alternative data and advanced predictive models,” Saleh said. “As those systems are being used at more and more touchpoints in the customer journey, we’re seeing fair lending risks and obligations grow commensurately.”
It’s scrutiny that could apply to servicers as well as originators, as use cases for AI to determine settlements, modification offers or what customers to call, when, and how often emerge, according to Saleh.
What some new dimensions of risk look like To get a sense of where AI and fair lending rules veer into areas like marketing regulation and potential fraud allegations, consider the following examples. While these lie outside the traditional owner-occupied single-family mortgage market, the situations involved are applicable.
One cautionary tale to be aware of when it comes to compliance for generative AI, a type of machine learning that draws on existing data it’s fed and patterns within it to create new outputs, was an Air Canada chatbot. (Several other airlines have used chatbots as well.)
That chatbot produced a response to a consumer asking about a bereavement discount in 2022 that was a “hallucination,” which is to say the AI somehow interpreted the airline’s data in such a way that it made an offer that didn’t previously exist at the airline and that it didn’t intend. Earlier this year, the British Columbia Civil Resolution Tribunal forced the airline to make good on the offer.
In the United States, that kind of development might lead to violations of laws against unfair, deceptive or abusive acts or practices, Shinohara said.
“I think those would equate to UDAAP concerns if there was something that was provided and was inaccurate, raising questions about whether the company is still on the hook for those types of miscommunications,” Shinohara said.
The Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and other prudential regulators enforce UDAAP, and the Federal Trade Commission enforces laws against unfair or deceptive acts and practices, which might also be relevant in such a circumstance.
Meanwhile, exemplifying the kind of new scrutiny of fair lending risks that might arise when AI gets used for marketing purposes is a recent missive the Department of Housing and Urban Development delivered to real estate agents and lenders.
HUD directed them to “to carefully consider the source, and analyze the composition, of audience datasets used for custom and mirror audience tools for housing-related ads” in conjunction with rules for AI-driven advertising rules and tenant screening.
Demetria McCain, principal deputy assistant secretary fair housing and equal opportunity, warns in a related press release that “the Fair Housing Act applies to tenant screening and the advertising of housing,” suggesting that officials are watching any customer outreach and approvals in this area for signs of redlining.
Marketing may currently be the bigger concern of the two for housing finance companies in the single-family owner-occupied market.
For now, qualifying borrowers or other core processes are determined primarily by major government-related secondary market players, so mortgage companies in that business are most likely to relegate AI and any related compliance efforts to customer outreach, according to Shinohara.
“I think there’s more focused interest on adopting AI or machine learning tools for things like marketing and how you make your marketing dollars go further. In action with marketing, you run into risks, like digital redlining,” she said. “If you’ve got tools that are being used to select who you’re going to market to, and you are marketing credit products, you should look at whether those tools inadvertently exclude or only give preference to certain communities.”
The path to compliant use of AI The aforementioned examples of new scrutiny applied to AI-driven tools do raise a key question about whether newer technologies like generative AI are helping to better address inequities that exist than their predecessors, or are further entrenching systemic biases.
“On the one hand, some of the disparate outcomes are likely the result of non-AI models, so you’ve kind of got a modernization issue,” Saleh said. “But also behind some of the disparities are AI issues which basically encode the disparities that were the result of the conventional techniques to begin with, and so it’s a very interesting time to be doing this work.”
AI could be viewed as a constructive force in a lot of the advanced data analysis the government-sponsored enterprises are doing with the aim of safely opening up the underwriting or marketing box in ways that could make lending more equitable.
“In theory, that should allow you to paint a kind of a finer portrait of a borrower, or the ability and willingness to repay a loan,” Saleh said.
But with AI currently relegated to limited use in conjunction with the customer experience and other challenges to qualifying for a loan existing in the market, applying AI to the point where it allows lenders to actually extend more loans to more people in an equitable manner is tricky.
“There are a lot of headwinds to write related to affordability in particular. So it’s a tough time to do fair lending, because on the one hand, you’ve got more resources than ever on the other hand, the macroeconomic environment is kind of working against you.”
How to address ‘the compliance officer’s lament’ When asked how a mortgage company can best address the aforementioned challenges, Saleh said, “This is the compliance officer’s lament, which is what do you want me to do? If I don’t do things exactly to the letter, am I going to get in trouble?”
Doing things to the letter may not even be possible, because the regulators themselves face a conundrum when it comes to giving companies guidance that’s too specific.
“There have been a lot of requests from the industry for more guidance and I think in some ways, the regulators have wanted to give more guidance. However, in other ways, they’ve been reluctant because they want to maintain their optionality,” he added. “They’re concerned that if they give guidance that’s too specific that people will game the system.”
So the industry is left to navigate what Saleh calls a “strategic ambiguity.”
“The thing about judgment is that you can always be second guessed, but if you can document that you take fairness seriously and why you feel the approach you’ve chosen doesn’t pose a threat to the consumers that you serve, I think that is your best option,” Saleh said.
Because legacy data that fuels generative AI may be biased and its outputs have to be watched for hallucinations, the answer to how to make it a constructive and compliant tool may be ongoing monitoring, a phrase common in consent orders.
The approach is in line with what mortgage companies that offer chatbots have said they’ve done to address the risks.. Instamortgage, for example, has said it limits possible interactions and constantly monitors the company’s personified chatbot, Rachel.
Saleh suggests applying analytics that may be AI-driven and can be examined on a regular basis such as monthly to the problem, perhaps even more frequently where unpredictable generative models are utilized.Although the aforementioned ambiguity from regulators and the opt-in nature of borrower information around race can make it be hurdles to interest in building the kind of robust fair-lending data sets that AI has the capacity to help ingest, Saleh advises doing so. He also advised keeping in mind that regulators generally want an understanding and explanation of any model used, no matter how complex it is, as HUD noted in its aforementioned directive.
“Have the benefit of evidence that’s informed by data so that you can comply and explain,” Saleh said.
Adjustments may not be necessary each time the statistics get examined as aberrations may occur in the short-term. But if counterproductive rather than productive patterns start to appear regularly in analyses, they need to be addressed, he said.
“I think a key part of what originators can do to navigate this environment gets back to saying, ‘Hey, we’re going to monitor frequently to make sure that these models and our decisions are performing reasonably and don’t pose a threat to consumers,” Saleh said.
Series EE bonds, or Patriot Bonds, were initiated in 1980 as a low-risk way for Americans to save. The money invested is guaranteed to double in 20 years.
They build upon the tradition of Series E bonds, or war bonds, which were introduced by the federal government in 1941. Learn more about this savings vehicle here.
What Is a Series EE Bond?
A series EE bond is a U.S. Treasury bond. It’s considered to be a very safe investment, as it’s backed by the U.S. government. It is guaranteed to double in value in 20 years, even if the government has to add funds to it to meet that mark.
To provide some context, here’s a quick look at what bonds are and how bonds work. A bond is a debt instrument. Bonds are issued by corporations or governments in order to raise capital. The bond market is huge — much larger than the equity markets. (In 2023, the market cap of the global bond market was about $133 trillion, versus $111 trillion for the stock market.) Investors provide capital to companies and governments when they buy the bonds, effectively loaning their money to that institution.
Meanwhile, the bond issuer agrees to pay investors the capital back, along with interest, after a certain period.
There are different kinds of bonds investors can purchase, including municipal, corporate, high-yield bonds, and U.S. Treasuries. A savings bond is a type of U.S. Treasury bond, issued with the full faith and credit of the U.S. government, meaning there’s virtually no chance of losing money. Savings bonds allow the government to borrow money for various purposes while giving investors a reliable and predictable stream of interest income.
Series E bonds, which were created in 1941 to help fund the WWII effort, were replaced in 1980 with Series EE bonds, or Patriot Bonds.
💡 Quick Tip: An online bank account with SoFi can help your money earn more — up to 4.60% APY, with no minimum balance required.
How Do Series EE Bonds Work?
If you’re interested in buying bonds, here are details on how a Series EE bond works:
• Series EE bonds are electronic and can only be purchased and managed online with a TreasuryDirect account. They are available in any denomination starting at $25, up to $10,000 per person named on the bond, per calendar year.
• These bonds are guaranteed to double in value in 20 years, even if the government needs to kick in extra cash. You can hold the bond for up to 10 additional years to continue to earn interest.
• When you purchase a Series EE bond, the interest rate will be stated. Through October 31, 2024, the interest rate is 2.70%.
• Interest is earned monthly, compounding semi-annually, for up to 30 years, unless you cash it sooner.
• Series EE bonds can be cashed in (or redeemed) after 12 months, but early withdrawal can trigger a penalty of partial interest loss.
• Electronic Series EE bonds can be cashed in via the TreasuryDirect site.
• Interest earned on Series EE bonds is taxable at the federal level. Federal estate, gift, and excise taxes, as well as state estate or inheritance taxes, may also apply. If the money is used for qualified education expenses, however, you may not be subject to taxes.
• The TreasuryDirect site also makes 1099-INT statements of interest earnings available annually.
Recommended: Understanding the Yield to Maturity (YTM) Formula
Understanding Series E Bonds
The popularity of Series E bonds may have hinged largely on the patriotic call to purchase them as part of the war effort. Buying bonds served two purposes: It helped the government to raise money for the war and it also helped to keep inflation at bay as shortages threatened to push consumer prices up. Apart from that, there were other qualities that might have made a Series E saving bond attractive.
These bonds were issued at 75% of their face value and returned 2.9% interest, compounded semiannually if held to 10-year maturity. So investors were able to earn a decent rate of return on their investment.
Series E bonds were also affordable, with initial denominations ranging from $25 to $1,000. Larger denominations of $5,000 and $10,000 were added later, along with two smaller memorial denominations of $75 and $200 to commemorate the deaths of President Kennedy and President Roosevelt, respectively.
Series E bonds were redeemable at any time after two months following the date of issue. Bond purchasers could redeem them for the full face value, along with any interest earned.
Interest from Series E bonds was taxable at the federal level but exempt from state and local taxes, adding to their appeal. And because they were issued by the federal government, they were considered a safe investment.
Recommended: Understanding the Yield to Maturity (YTM) Formula
Series EE Bond Maturity Rate
The maturity rate for EE bonds depends on when they were first issued.
Here’s a table showing the maturity dates for Series EE bonds over time:
Issuing Date
Maturity Period
January – October 1980
11 years
November 1980 – April 1981
9 years
May 1981 – October 1982
8 years
November 1982 – October 1986
10 years
November 1986 – February 1993
12 years
March 1993 – April 1995
18 years
May 1995 – May 2003
17 years
After June 2003
20 years
Recommended: 13 Tips for Aggressively Saving Money
Are Series EE Bonds Right for Me?
Series EE bonds can be a convenient, low-risk way to help your money grow over time. Plus, many people like the idea of investing in America and having their investment backed by the U.S. government. However, the rate of return may not be optimal, and the bonds are typically held for quite a long time versus a short-term investment.
Here are two popular alternatives you might consider to grow your money:
Savings Accounts
A savings account is a deposit account that’s designed to hold the money you don’t plan to spend right away. You can find various types of savings accounts at traditional banks, credit unions, and online banks. Savings accounts can pay interest, though not all at the same rate.
High-yield savings accounts at online banks, for example, tend to pay much higher rates than basic savings accounts at brick-and-mortar banks. Currently, they may offer around 4.60% APY (annual percentage yield) versus 0.58% for savings accounts.
Stocks
If you’re unclear about how stocks work, they effectively represent an ownership share in a company. When you buy shares of stock, you’re buying an ownership stake in a publicly traded company. The way you make money with stock investing is by buying low and selling high. In other words, you want to purchase stocks at one price then sell them for a higher price.
Stock trading can be a more powerful way to build wealth over time versus keeping money in a savings account or buying bonds. But there’s a tradeoff since stocks tend to be much riskier than bonds or savings accounts. Buying shares of mutual funds or exchange-traded funds (ETFs), which hold a collection of different stocks as well as bonds, is one strategy for managing that risk.
Recommended: Bonds vs. CDs: What’s Smart for Your Money?
Banking With SoFi
Series EE savings bonds can be a safe way to earn a steady rate of return. However, they aren’t the only way to grow your money.
Interested in opening an online bank account? When you sign up for a SoFi Checking and Savings account with direct deposit, you’ll get a competitive annual percentage yield (APY), pay zero account fees, and enjoy an array of rewards, such as access to the Allpoint Network of 55,000+ fee-free ATMs globally. Qualifying accounts can even access their paycheck up to two days early.
Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall.* Enjoy up to 4.60% APY on SoFi Checking and Savings.
FAQ
When should I cash in EE savings bonds?
Series EE savings bonds are optimally held for 20 years, at which point the money invested will have doubled. If you’d like to keep earning interest, you may hold the bonds for up to an additional 10 years.
How long does it take for a Series EE savings bond to mature?
Series EE savings bonds mature in 20 years. At the end of that period, the initial investment’s value will have doubled. You may hold them an additional 10 years and continue to earn interest, if you like.
Do Series EE savings bonds double after 20 years? 30 years?
Series EE savings bonds double after 20 years. If you don’t redeem them, you may continue to earn interest on them for another 10 years, for a total of 30 years.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.
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As an alternative to direct deposit, SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.
SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.
SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.
Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.
Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.
*Awards or rankings from NerdWallet are not indicative of future success or results. This award and its ratings are independently determined and awarded by their respective publications.
I’m now 30 months into my new career, and I’m loving every single day.
As a lifelong learner, I find the nuanced topics of financial planning and investment management to be a limitless sandbox, or perhaps more like an underground cave system. Where’s the bottom?! Nobody knows!
Despite that complexity, my colleagues and I help clients with many common issues that are not the strict domain of experts. These are topics you don’t need CFPs, CPAs, or attorneys to help you with. And that fact – that even experts focus on getting the basics correct – is an important lesson.
Let’s dive into some examples.
Cash Flow Management
Cash flow management is the single biggest financial fundamental that most people overlook. I see examples of this daily, both good and bad.
I’ve seen people earning $600,000 and spending $625,000 yearly. They’re drowning (though usually unaware of it).
I’ve seen people earn $300,000 and spend $200,000, or earn $120,000 and spend $80,000. They are thriving. If you’re saving 20%+, you’re killing it. Great work.
Yes, it is so simple: Spend less than you earn and, ideally, measure it. Despite its simplicity, this idea is the foundation upon which the rest of our finances are built. Cash flow management is a vital part of every financial planning conversation.
Portfolio Complexity
Prospective clients or new clients typically prioritize portfolio reconstruction. I get to see the peculiar, the zany, the intriguing…somebody call P.T. Barnum!
The most common theme, though, is that many outside portfolios have come to me far more complex than they needed to be.
The most frequent complexity is to see 4 or 8 or 15 mutual funds in a single portfolio that are performing the same exact role. Who needs 15 mutual funds that are all 60% stocks, 40% bonds, and actively managed? The answer, of course, is nobody. But why, then? Why do investors get in this situation in the first place?
The reason is what I call “flavor of the month.”
With about 97% accuracy, I can tell these portfolios were built by a financial advisor who was financially incentivized to buy specific funds for their clients. The “mothership” will tell such advisors, “Our NBNHX mutual fund is undercapitalized. If you put your clients in NBNHX this quarter, we’ll double your commission on it.”
That’s a flavor of the month. Not for the client, mind you. But for the advisor. It’s a conflict of interest, for sure, but not all advisors are required to act as fiduciaries. We call on Uncle Charlie to remind us, “Show me the incentives, I’ll show you the outcomes.” Next thing you know, NBBHX has entered the portfolio.
The portfolio fills up with these various flavors of the month until – voila! – you have a Baskin Robbins. But despite the “flavors” having different ticker symbols, they all taste the same. Imagine if Baskin Robbins sold 31 flavors of vanilla! That’s what these portfolios look like. “Could I get a scoop of vanilla, a scoop of French Vanilla, and one of Vanilla Bean? Sprinkles? Never…”
Instead, we should make specific investment choices to answer specific portfolio problems—in layman’s terms, put the “right tools for the jobs” into your portfolio.
Each “job” might require its own specialty “tool.” We each have many tools in our garages and toolboxes. There’s nothing wrong with having multiple funds in a portfolio. But you don’t want or need redundant assets, just like a homeowner doesn’t need nine shovels.
You should be able to point to each fund or asset in your portfolio and describe the unique reason it’s there or the specific portfolio problem the asset is solving.
It’s hard to find a picture that combines “ice cream” and “tools,” so I asked A.I. to help me out. I’ve seen plenty of weird A.I. images at this point, but it’s still disorienting to see such real-looking objects (that ice cream isn’t real?!) juxtaposed with a computer’s misguided interpretations (what kind of dental torture device is that in the lower right? and why do the screwdrivers all have wooden popsicle sticks?).
Too Much Cash
Nobody should complain about 5% risk-free rates. However, cash is not a long-term investing strategy. Risk-free rates cannot, and should not, outperform inflation over the long run. You need to take some risk.
While cash is an important buffer to ensure short-term liquidity and an emergency fund safety net, your long-term assets should be in a risk-bearing, higher-growth asset class.
Stocks and bonds are wonderful.
Further reading: How Much Time Does It Take for Stocks to Outperform Bonds?
Goal Setting
Whether you realize it or not, your financial plan has specific branches and pitstops and end-points. My financial plan does too. But mine are much different than yours.
The reason is because each of those branches and pitstops and end-points are related to specific goals. My goals for my plan, your goals for your plan.
You don’t need a professional’s intervention to ask yourself, “What are our financial goals? What do we want life to look like, and by when, and how much might that particular life cost us?”
Consolidation
A common financial stress I hear rhymes with, “We have money all over the place. Too many accounts, too many statements, we need help!”
There’s not always a financial impact from consolidation (though sometimes it will save you annual or monthly account charges). But a significant mental burden lifts when you go from 24 disparate accounts down to 5.
Scary Stuff
People out there have scary stuff in their financial lives. The more stones I overturn, the more interesting scenarios I find. Some examples include:
Keeping large amounts of credit card debt to “improve our credit scores.” Credit scores don’t work that way.
Saving large sums ($25,000+ per year) while carrying huge credit card debt ($50,000+). Bad priorities. No investment is going to outperform paying down a 25% debt.
Tapping into a 401(k) prematurely (though quite intentionally) without awareness of the extremely stiff penalty. There’s a 10% early withdrawal penalty plus your marginal Federal tax rate (22% to 37% for most of you) plus your marginal state tax rate (6-8% here in NY). For hire earners, it sums to north of 50%. That $50,000 withdrawal? You keep $24,000 of it. The rest goes to the IRS.
Unrealistic spending plans. Both irrationally optimistic and irrationally pessimistic. Two families each want to spend $100,000 a year throughout their retirement. The first family has a $500,000 nest egg, which works out to a 20% withdrawal rate. The 4% rule is squealing. The second family has $15 million, or a 0.67% withdrawal rate. They are crippled with anxiety over running out of money. Neither family is living in reality.
No communication. Family finances are a deeply personal topic. There are many ways to skin the cat. But there aren’t infinite ways to skin a cat. Some methods are plain stupid. It shouldn’t take a meeting with a CFP for one spouse to tell the other spouse they still have $120,000 of student loans. Communication, communication, communication.
Ok, you spelunkers. It’s fun to dive deep into the financial planning cave, where the Social Security salamanders and the Roth conversion crayfish lurk. But the professionals care deeply about the “surface-level” stuff too, and it’s perhaps more important to get those simple ideas right.
Thank you for reading! If you enjoyed this article, join 8000+ subscribers who read my 2-minute weekly email, where I send you links to the smartest financial content I find online every week.
-Jesse
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Get ready to be blown away by this brand-new, jaw-dropping California Modernism-inspired compound in the heart of Pacific Palisades.
Freshly landed on the market for a cool $34 million, this 2024 stunner offers the ultimate blend of luxury, style, and convenience — with a distinct architecture that makes it fit right in with area’s many notable properties, which include four Case Study House Program residences and National Register of Historic Places-designated houses.
Listed by Jacqueline Chernov at Compass and David Berg, Kristin Alexander, and F. Ron Smith of Smith & Berg Partners, the newly built marvel offers 15,681 square feet of luxury living space and some standout amenities, not to mention a killer location in the Palisades.
Here’s a peek inside this posh pad.
Specs & features
Price: $34,000,000 Location: Between Riviera Country Club, Palisades Village, and Will Rogers State Beach Size: 15,681 sq ft Bedrooms: 6 Bathrooms: 12 Lot size: 0.52 acres Notable features: elevator, subterranean 6-car garage, home automation system Select amenities: Ocean views, home theater, wine-tasting room, full spa with a gym, massage room, sauna, resort-like backyard with zero-edge infinity pool & cabana
Set in an enclave of architecture
The estate sits on the architecturally significant Chautauqua Boulevard, best known for its four iconic midcentury houses built under the auspices of Arts & Architecture magazine’s Case Study House program.
Bearing the signatures of lauded architects like Charles Eames, Eero Saarinen, Rodney Walker, and Richard Neutra, several of them have been listed in the National Register of Historic Places. That includes the Eames House, the famous mid-century modern home of well-known designers Charles and Ray Eames, now open to visitors.
Paying tribute to the area’s architectural past
While 538 Chautauqua Boulevard might not align itself with its neighbors’s midcentury modern aesthetics, its architecture does adopt (or rather, adapt) their California Modernism elements.
Drawing heavily on the principles of California Modernism, it features clean lines, open spaces, and a seamless connection with the outdoors. It also heavy showcases certain hallmarks of this style like the extensive use of glass.
Inside the main level
Walking through the front door, you’re greeted by soaring 12-foot ceilings and steel-framed doors that flood the space with natural light.
The gourmet kitchen, complete with a butler’s pantry, is a chef’s dream come true, and the multiple living areas make this home perfect for hosting grand events or cozy family gatherings.
Luxury amenities galore
Head downstairs to find a bar, lounge, wine-tasting room, home theater, and a full spa with every other wellness amenity imaginable. Think gym, massage room, sauna, and steam room. Talk about living the high life!
Sophisticated interior finishes
The interior of this home is a masterclass in sophisticated design. From the warm, monochromatic palette to the high-end finishes, every detail has been carefully selected.
Highlights include Taj Mahal slab stone, which adds a touch of elegance and durability, and Apparatus lighting that provides both function and a modern aesthetic. These elements come together to create a cohesive and luxurious living environment.
Standout design elements
Some of the most striking features of this home are the soaring 12-foot ceilings and the walls of steel-framed doors that flood the space with natural light.
These architectural choices enhance the feeling of openness but also highlight the brilliant millwork of the artisan-crafted walnut staircase and custom built-ins. The design elements are both visually stunning and add practical elegance to the spaces.
The primary suite
The primary suite is nothing short of a personal oasis. With its high vaulted ceilings, you’re enveloped in an atmosphere of tranquility and spaciousness. Imagine waking up to panoramic ocean views and enjoying your morning coffee from your private sitting room.
The suite also boasts dual custom closets, offering ample space for even the most extensive wardrobes, and a stone-clad bath that creates a spa-like experience right at home.
Bathrooms are equally luxurious
Every bathroom has been crafted with attention to detail, featuring high-end fixtures and finishes, and a luxurious design that seems taken straight out of the most expensive hotels in the world.
Heading outside to the zero edge pool
Step outside, and you’re greeted by a resort-like backyard that rivals any high-end vacation destination. The zero-edge infinity pool seems to blend seamlessly with the ocean views, providing a perfect spot to unwind.
More outdoor amenities
The outdoor kitchen and private cabana make entertaining a breeze, whether it’s for hosting a summer barbecue or a sophisticated evening gathering. The outdoor space is designed for both relaxation and recreation, making it an ideal extension of the luxurious indoor living areas.
Our favorite part? The sunken outdoor living area with plenty of seating, which I’m sure makes for one hell of a party spot.
A great location in the Palisades
The newly built home is located in the affluent neighborhood of Pacific Palisades, known for its tranquil ambiance, breathtaking ocean views, and large, private homes — that sport a hefty median listing price of $5 million, per Realtor.com.
Conveniently nestled between the Riviera Country Club, Palisades Village, and Will Rogers State Beach, 538 Chautauqua Boulevard offers easy access to some of the area’s top attractions. Whether future owners will be into golfing, shopping, or beach lounging, everything is just a stone’s throw away.
More stories
Celebrity Chef Giada de Laurentiis Sells Scenic Pacific Palisades Home for $7 Million
After a Successful Streak of Savvy Real Estate Investments, Arnold Schwarzenegger Now Lives in a Pacific Palisades Mansion
‘The One’ mansion saga: from a $500M listing to its $141M auction sale
Traveling abroad can be an exhilarating adventure, especially when you’re heading to Europe. Whether you’re in the mood for an eclair or want to take in the Colosseum, making your way over to Europe involves a lot of moving parts.
That’s why travel insurance can be so beneficial. With protections such as trip delay reimbursement and coverage for lost luggage, travel insurance can help make sure your trip stays smooth.
What’s more, several plans include travel health insurance in Europe, so you can worry less about whether that hike through the Alps is a good idea.
Let’s take a look at travel insurance in Europe as well as other coverage options for your vacations.
How travel insurance works
Because a lot of thought, money and effort go into planning and taking a vacation, protecting your investments (and yourself) with travel insurance can make the difference between an enjoyable memory and a disastrous anecdote you tell at mealtimes.
Travel insurance can cover a variety of things, including:
Common types of travel insurance
Trip cancellation, trip delay, trip interruption and lost luggage insurance are all sources of protection when you travel, especially on airlines. These can reimburse you for nonrefundable expenses you miss out on due to covered delays, and may pay you back for costs you end up incurring (including lodging, meals, toiletries and clothing).
🤓Nerdy Tip
Although it’s possible to get standard health insurance for trips abroad, it’s much more common to get coverage for emergency care, which includes protections for unexpected injuries and illnesses.
Health insurance for European travel is usually included with a standard travel insurance policy, but there are plan limits and there may be deductibles.
It’s also possible to purchase medical-only travel insurance from certain providers if you aren’t interested in other trip protections.
How to choose between travel insurance companies
Before you start shopping for travel and medical insurance in Europe, evaluate the level of coverage you need based on your age, health, trip duration, destination and planned activities (some adventure sports aren’t always covered). Compare plans from different providers, paying attention to coverage, benefits and prices.
Here’s a short list of factors to consider:
The cost of the policy.
The limits of the plan.
Whether there are deductibles.
Whether the benefits are primary or secondary.
Where you’re going.
How long your trip is.
Whether you already have insurance that’ll cover you.
The types of activities you’ll be doing.
An insurance aggregator like InsureMyTrip or Squaremouth (a NerdWallet partner) can streamline your shopping experience. Be sure to also read reviews and ratings of individual travel insurance companies to get an idea of customer service and claim resolution processes.
Best plans for health insurance while traveling in Europe
To figure out the best plans for travel and health insurance in Europe, we generated quotes from multiple travel insurance companies using a test scenario. For this example, we used a 37-year-old Nevada resident traveling to Germany for 11 days with a $4,000 trip cost. Here are the winners.
1. GeoBlue
GeoBlue’s Voyager Choice medical insurance for European travel sits head and shoulders above the rest for cost, at only $28.16.
That said, there’s a reason it is so affordable. This plan offers coverage only for medical emergencies and lacks other trip protections. It is a good option if you want to supplement existing travel coverage (say via your credit card) with more medical coverage.
$1 million in medical coverage.
$0 deductible.
Offers direct billing.
No trip protections.
Pre-existing condition coverage requires that you have domestic health insurance.
Can only purchase plans up to six months in advance of your trip.
2. IMG
IMG’s iTravelInsured Travel SE’s comprehensive plan includes both trip protections and health insurance for Europe travel and rings in at just $135.36.
At this price point, it provides excellent primary coverage for medical insurance, offers rental car insurance and includes superior trip interruption reimbursement.
Travel delay reimbursement kicks in after 12 hours.
Baggage loss is capped at $250 per item and $1,500 total.
More expensive than other options.
3. Detour Insurance
The Detour Insurance @The Edge insurance plan is aptly named. Costing $86.90, the plan offers a unique inclusion for the costs of search and rescue, which can provide peace of mind if you’re participating in backcountry adventures.
$1 million limit for medical evacuation.
Coverage can be extended.
$10,000 for search and rescue.
No rental car insurance.
Pre-existing conditions not covered.
$50,000 limit for 24-hour accidental death and dismemberment (AD&D) coverage.
4. Trawick International
Trawick International’s Safe Travels Protect plan includes primary medical coverage as well as a wide range of trip protections. At $100.03, it even covers cancellations for medical reasons.
$25,000 in emergency medical coverage.
100% for both trip cancellation and trip interruption.
Medical quarantine coverage included.
$100 medical deductible.
$500 lost luggage limit (not a great fit if you are packing several valuables).
Doesn’t cover pre-existing conditions.
Other tips for travel and medical insurance in Europe
Do you have a travel credit card? Many of these cards offer complimentary travel insurance as a part of their benefits.
The plan you select may offer secondary coverage, but this matters only if you have existing insurance. In its absence, secondary coverage becomes primary.
Look at your existing health insurance policy. Some plans will provide emergency coverage for you when traveling internationally.
Which credit cards offer Europe travel insurance?
If you’re looking for insurance when traveling to Europe, you may already have it without knowing. Many travel credit cards offer complimentary travel insurance.
Available types of insurance can include rental car insurance, emergency medical insurance, trip cancellation reimbursement, lost luggage protection and trip delay insurance.
Here are some of the best credit cards for travel insurance:
Top cards with travel insurance
Chase Sapphire Preferred® Card
on Chase’s website
Chase Sapphire Reserve®
on Chase’s website
The Platinum Card® from American Express
Capital One Venture X Rewards Credit Card
Annual fee
Travel protections (not a comprehensive list)
• Trip delay: Up to $500 per ticket for delays more than 12 hours.
• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.
• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.
• Baggage delay: Up to $100 per day for five days.
• Lost luggage: Up to $3,000 per passenger.
• Trip delay: Up to $500 per ticket for delays more than 6 hours.
• Trip cancellation: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.
• Trip interruption: Up to $10,000 per person and $20,000 per trip. Maximum benefit of $40,000 per 12-month period.
• Baggage delay: Up to $100 per day for five days.
• Lost luggage: Up to $3,000 per passenger.
• Trip delay: Up to $500 per trip for delays more than 6 hours.
• Trip cancellation: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.
• Trip interruption: Up to $10,000 per trip. Maximum benefit of $20,000 per 12-month period.
• Lost luggage: Up to $3,000 per passenger.
Terms apply.
• Trip delay: Up to $500 per passenger for delays more than 6 hours.
• Trip cancellation: Up to $2,000 per person for nonrefundable airline, bus, train or ferry tikets.
• Trip interruption: Up to $2,000 per person for nonrefundable airline, bus, train or ferry tikets.
• Lost or damaged luggage: Up to $3,000 per passenger.
Learn more
Terms apply.
Travel insurance for Europe recapped
Staying safe is important during your trip to Europe. Health insurance for travel can make a difference, especially if you’re planning on doing anything adventurous. The same can be said for other trip protections, which reimburse you for covered expenses that you incur.
To view rates and fees of The Platinum Card® from American Express, see this page.
Insurance Benefit: Trip Delay Insurance
Up to $500 per Covered Trip that is delayed for more than 6 hours; and 2 claims per Eligible Card per 12 consecutive month period.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.
Underwritten by New Hampshire Insurance Company, an AIG Company.
Insurance Benefit: Trip Cancellation and Interruption Insurance
The maximum benefit amount for Trip Cancellation and Interruption Insurance is $10,000 per Covered Trip and $20,000 per Eligible Card per 12 consecutive month period.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.
Underwritten by New Hampshire Insurance Company, an AIG Company.
Insurance Benefit: Baggage Insurance Plan
Baggage Insurance Plan coverage can be in effect for Covered Persons for eligible lost, damaged, or stolen Baggage during their travel on a Common Carrier Vehicle (e.g., plane, train, ship, or bus) when the Entire Fare for a ticket for the trip (one-way or round-trip) is charged to an Eligible Card. Coverage can be provided for up to $2,000 for checked Baggage and up to a combined maximum of $3,000 for checked and carry-on Baggage, in excess of coverage provided by the Common Carrier. The coverage is also subject to a $3,000 aggregate limit per Covered Trip. For New York State residents, there is a $2,000 per bag/suitcase limit for each Covered Person with a $10,000 aggregate maximum for all Covered Persons per Covered Trip.
Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply.
Inside: The 100 Envelope Challenge is a popular money saving challenge that has gained widespread popularity in recent years. The envelope money challenge is a fun and creative way to save money as it can be tailored to suit different budgets and financial goals.
Let’s be honest… sometimes you just have to make saving fun because saving money for another day can get kind of boring after a while.
Here at our site, Money Bliss, we have plenty of fun money saving challenges to help you find the perfect one for you.
Today, we are going to bring you one that is very unique.
Have you seen the popularity of this money saving challenge with envelopes taken off on TikTok? If not, then you are missing out.
This saving hack has been going viral and does not seem to be going away anytime soon. There is so much interest in this information!!
In this article, we will break down everything you need to know to start saving money today.
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
What is the 100 Envelope Challenge?
The 100 day envelope challenge is a straightforward hack to start saving money.
You start with 100 envelopes and label them with the numbers 1 through 100. Then place all of the envelopes in a special place like a container box, basket, file folder, or bag.
Each day, you will choose a new envelope, and you must put that amount of money in the envelope.
Real Life Example For With 100 Day Envelope Challenge
For example, if you draw the number 33, then you would put $33 into that envelope and seal it.
Then the next day, if you draw the number 72, you would put $72 into that envelope and seal it. Then, continue this challenge for over 100 days.
And the best part is by the end of the 100 envelope challenge, the goal is to save $5,050.
Now, after 100 days, I would call saving $5,000 a huge win. Now, do I have your interest?
Is the 100 envelope Challenge worth it? My Personal Experience
I recently started the 100 day envelope challenge because I wanted to save more money. This was a great way to kickstart my short term goal.
My kids loved to pull out the envelope for that day and stuff it with cash. Once I was done I would close the envelope and stamp it with a sticker.
As a very visual person, I found that this challenge was incredibly rewarding and gave me a sense of accomplishment.
I was able to see my progress as I went along, and it was nice to have a visual reminder of how far I had come.
I was also able to stay on track with my saving goals and could adjust if needed.
On the downside, we don’t have cash around as much.
So this was the hardest part of the envelope saving method. Consequently, I opened a separate savings account, and I could easily make a transfer from my checking account. This allowed me to stay on top of my savings without worrying about having enough cash.
When I was a waitress, this challenge would have been a fun way to save money with my tips! Oh, what an inspiring money-saving journey that would have been!
100 Envelope Challenge Chart
How much money do you save with the 100 envelope saving challenge?
You need to the numbers behind everything so you truly understand how the 100 day money challenge is set up.
Let’s break down how the math works with this 100 envelope challenge chart. See the image below for a visual layout of the information.
At the end of the 100 day money challenge, you will save $5,050!!
How the 100 day Envelope Savings Challenge Works:
This is how to do the 100 envelope challenge. The premise of the 1-100 day envelope saving challenge is simple.
The 100 day envelope challenge is a savings challenge in which you are challenged to save a specified amount of money within 100 days.
Step #1 – Gather your supplies
Step #2 – You will write the numbers 1-100 on blank envelopes.
Step #3 – Each day or whenever you choose to pick an envelope, you will stuff the envelope with that much cash.
Step #4 – Track your progress.
Step #5 – Save $5050 in 100 days or 100 envelopes.
Pretty easy, right?
This post may contain affiliate links, which helps us to continue providing relevant content and we receive a small commission at no cost to you. As an Amazon Associate, I earn from qualifying purchases. Please read the full disclosure here.
Envelope Challenge Math
Are you a little worried about having to save a lot in one week? Need to know how to calculate 100 envelope challenge, here you go.
Here is the math if you randomly pick an envelope each day:
Most you save in one week: $679
The least you save in one week: $371
Even if you do not finish the entire 100 days and quit on day 50, you will save at least $950. More than likely, it will be a higher amount (unless you are great at just picking numbers under $50).
This challenge is great for somebody who gets paid with cash consistently, like servers, bartenders, drivers, caddies, etc – any tipped employee.
Find more money saving charts.
Is the 100 envelope challenge hard?
In fact, the 100 envelope challenge is extremely simple – just number the envelopes and shake them around to randomize their order.
You can use this method to save for anything – a vacation, a new car, or even your retirement!
This is a great way to exercise your brain and challenge yourself.
Raisin
Simply select one of the high-yield savings products offered by their network of federally insured banks and credit unions to begin your savings journey.
You can open a free Raisin account in just a few minutes!
Compare Rates
Advantages of 1-100 Envelope Challenge
Most importantly, the 100 envelope challenge is a great way to save money.
This 1-100 saving plan is simple and easy to follow. You can save a lot of money in a short period of time with this challenge.
1 – Save Money for a Purpose
The challenge is a great way to save for your emergency savings, pay off your debt, or save for a vacation.
You can start the challenge at any time and with any amount of money. All you need is 100 envelopes and some willpower!
2- Makes Savings A Habit
One of the advantages of building good habits is that they become easier and more automatic with time – this is proven by my favorite book, Atomic Habits.
Habits are a helpful thing, as they can make our lives a lot easier. When we build good habits, we’re more likely to do the same things in the future without having to think about them.
That is why the 100 envelope challenge is amazing. With each envelope, you are building a habit of saving money and paying yourself first.
3- Improve your Cash Situation in 3 Months!
This challenge helps you save money in a short period of time.
For 100 days (or envelopes), you are focused on saving money. A little bit at a time.
Also, it helps you become more mindful of your spending. That is a win-win!
In fact, you can use this how to save 5000 in 3 months chart.
4 – Easy to Follow with No Excuses
No advanced math skills are needed for this one.
The plan is simple to follow and the cash is easy to access.
As such, it would be difficult to come up with reasons why you are unable to complete this 100 day money envelope challenge.
5 – Restart if needed
Too many times, one thing happens and it completely derails our plans.
If your financial situation changes, you can stop and restart the challenge when you can. This makes it a great option for people who want to save money but are nervous if their finances change.
Drawbacks of the 100 Day Money Challenge
There are a few drawbacks, just like there are with any money saving challenge.
1 – Access to Cash
The first one is if you do not have access to cash readily. This can cause a problem to stuff your numbered envelopes with a dollar each day.
If you manage your finances digitally and don’t carry various dollar bills around, then it is much harder for you to find ways to actually physically stuff those envelopes with cash.
2- Figuring out the Budget with High Number Days
Another drawback of the challenge is what would happen if you picked #98 and # 99 on back-to-back days, you must save $197. That may be a challenge to have the extra cash available to do so. Especially if you pick #97 on day 3!
For instance, even for a tipped employee as a server who maybe makes $160 in a shift. That means over half of their cash would have to go straight to the envelope challenge.
Change to 200 Envelope Challenge – A Spin to Save at Least $5K!
3 – Concept of Finding Money to Save
Another drawback of this challenge is if you are struggling to live paycheck to paycheck, then attempting this challenge may just get you down and defeated. There is a possibility you may get behind on stuffing the envelopes, as you would randomly pick them.
Instead of being disappointed, you need to change the frequency of picking up an envelope every day to maybe picking envelopes one to three times a week; thus, stretching out the 100 days further.
100 Envelope Savings Challenge will Be Helpful
Even if you only make it, thirty percent of the way through the challenge… guess what, you have 30% more saved now than you did without doing the challenge.
Overall, I truly believe that any way to make saving money fun is well worth the effort.
If you make it to 65% of the way, then you are saving more than you would without the challenge.
How does envelope savings work?
With any of the envelope challenges, they are just a money saving challenge. A fun way to save money! A plan to follow to keep you accountable. A target to achieve!
Envelope savings is a tried and true way to save money.
It’s simple, it’s straightforward, and it works. You put your money in an envelope and don’t spend it until the challenge is complete. This challenge can be a fun way to get to know your spending habits better while saving money.
The savings are real, and you will be surprised at how much you can save by following this challenge for even just a few months!
Plus if you put the money in a high interest saving account, then you are adding more interest and dollars on top!
Many people prefer one of these challenges instead:
Shop for Supplies Needed for the 100 Day Envelope Money Saving Challenge
The supplies needed for the 100 Day Challenge are not complicated and you should have most of them around your house. If not, you can make a list and shop for them.
Supplies Needed:
Envelopes – Plain old white envelopes work, but colored envelopes make everything more fun.
Sharpie or Marker Pens – You need something to write with in order to keep track of those envelopes.
Cash – You need to figure out where you have the extra cash to stuff those envelopes. You may need to run to the bank quite a few times.
Stickers or Rubber Stamps – To make sure you don’t cheat and reopen a finished envelope.
Box or Container – Just make sure you have enough space for your envelopes!
Or Just Shop for this handy dandy premade Money Saving Box!
Related Read: Best Cash Envelopes – Pick Your Favorite
DIY 100 envelope challenge tracker
Also, it is super helpful to have a free printable 100 day challenge to keep you accountable! Don’t worry… we have you covered!
At the bottom of the post, you have the opportunity to download the image of the free 100 envelope challenge PDF.
Printable 100 envelope challenge
The 100 Envelope Challenge is a printable tracker chart you can download and print. Go to our resource library (for our email subscribers) to print the image.
It details how to set up an envelope challenge with your friends, family members, or co-workers.
The idea is that in the course of six months you will have earned $5,050 in savings by doing this challenge!
This 100 envelope challenge tracker is a useful tool for tracking the progress of your endeavor. You want to use a 100 envelope challenge tracker to keep you motivated during the next six months and reach your goal.
It can be printed or colored digitally and allows you to stay on top of how much money you need each day or each week.
100 Envelope Challenge App
As of right now, there is no $100 envelope challenge app developed to make this cashless. However, you can do this challenge digitally and we will show you how to do it virtually.
In case you utilize a cashless envelope system, you may be wanting to do this challenge, but are not sure the best way to do it.
Here is how to do the 100 day challenge digitally:
Instead of using 100 envelopes, you could write on 100 pieces of paper, fold them up, and put them into a bag or box.
Every day you would draw out a new number (just like the normal challenge).
Make sure you have a separate savings account for the challenge.
Instead of placing cash into the envelopes, you will move money from your checking account to that separate savings account.
For example, on the first day, you pull out the number 53. Well, that means you would move $53 from your checking account into your newly open 100 envelope challenge savings account.
You are taking money from your normal spending and moving it away and into a savings account.
That way you are setting aside money, virtually into a different account.
100 Envelope Challenge Variations
Not everyone can complete the 100 envelope saving challenge as we discussed in this post.
So, here are some alternatives to still save money using a concept similar to envelopes and still target saving $5000:
100 envelope challenge weekly – Pull envelopes each week instead of daily.
Save $50 for every envelope.
Give yourself an hour and see how long it takes before opening your last envelope.
10k in 100 days envelope challenge (detailed below).
50 envelope challenge is a variation on the 100 envelope challenge.
Pull envelopes on payday.
It’s up to you how long it takes to get there and if you want to take some time off in between while continuing to spend less than your original budget.
Higher income? Then check out the 10k in 100 days envelope challenge. This accelerated saving challenge is perfect for you.
Honestly, the goal is to save $5000. How you use this information and reach your target dollar amount is completely up to you!
100 Day Envelope Challenge FAQs
If you’re looking for a free printable version of the 100 envelope challenge chart, you can find it in our free resource library.
This section provides our readers with plenty of printables they can enjoy.
Make sure you subscribe to our email newsletter.
Yes, you can do the 100 envelope challenge twice a week.
Instead of picking an envelope each day, you would pick an envelope two times a week. Then, you would finish the challenge in one year.
The premise of the 100 envelope challenge is a money making challenge that allows you to save money and stay motivated.
Yes, you can complete the 100 envelope challenge biweekly. You will have more time to complete the challenge this way.
Instead of completing the challenge in 100 days, it will take you 200 weeks. To shorten the time, you can pick multiple envelopes with each biweekly paycheck.
Find more biweekly money saving challenges.
The 1-100 envelope challenge is a social media trend where participants are asked to create an envelope with a specific number of envelopes inside of it.
At the end of the challenge, you will save $5050.
This assumes you follow the traditional 1-100 day envelope challenge with no variations.
The 100 Day Envelope Challenge will take 14 weeks and 2 days to complete.
Or about 3.5 months.
The goal of the challenge is to prove you can save money and to see how far you can push yourself.
When you complete the 100 day envelope challenge in its entirety, you will have $5,050.
Yes, you can complete the 100 envelope challenge UK, Africa, or any other country.
You can live wherever you want to participate. Since you complete this challenge on your own, you can adjust the challenge as you see fit.
Are You Ready for these Envelope Saving Challenges?
All in all, this is the one great thing that social media can offer – maybe even providing information that can change the dismal data on saving money.
It brought around a brand new challenge for you new hack for you to start saving money.
The 100 day envelope challenge is a fun goal to kickstart your money saving journey.
The 100 day money envelope challenge may be too aggressive for what you can do right now, so here are great options to build those saving habits:
If you like the idea of this challenge here are some other money saving challenge ideas that you may enjoy more:
Know someone else that needs this, too? Then, please share!!
Did the post resonate with you?
More importantly, did I answer the questions you have about this topic? Let me know in the comments if I can help in some other way!
Your comments are not just welcomed; they’re an integral part of our community. Let’s continue the conversation and explore how these ideas align with your journey towards Money Bliss.
After the latest report revealed that inflation remains high at 3.4% — and after the May Consumer Price Index All Urban Consumers report showed a 0.3% increase in April — the Federal Reserve elected to hold the federal funds rate steady for the sixth consecutive meeting. This, in turn, further delayed the anticipated rate cuts that had, at one point, been expected to occur in mid-2024.
While the Federal Reserve doesn’t directly set mortgage rates, the rates offered by lenders tend to follow the agency’s lead. As such, mortgage rates remain elevated, and once again have climbed over the 7% mark on average, with the 30-year fixed-rate mortgage rate averaging 7.18% as of June 4, 2024.
The Fed’s next meeting is set for June 11 and 12, and many potential borrowers are hopeful that a rate cut will occur, followed by a drop to mortgage rates. Late last year, the agency hinted at multiple rate cuts in 2024, but persistent inflation has delayed such cuts. So, any rate drop would be welcome news for potential homebuyers looking for lower borrowing costs. But will mortgage rates fall after the June Fed meeting? Here’s what experts say.
Compare today’s top mortgage loan options and get started today.
Will mortgage rates fall after the June Fed meeting? Here’s what experts think
We consulted several experts to get their take on the Federal Reserve’s potential course and how it could influence mortgage rates. Here’s what they had to say.
Joseph Camberato, CEO at NationalBusinessCapital.com:
“I highly doubt we’re going to get a rate cut just yet. I really believe we’re finally headed in the right direction, albeit very slowly. Inflation still rose 0.3% in April, which was better than expected, but it’s still up 3.4% for the year and unemployment remains the same. The Fed is looking for it to worsen to lower rates.
If the Fed keeps rates the same, mortgage rates will probably remain unchanged in the short term.”
Daniel McKeever, assistant professor at the School of Management at Binghamton University, State University of New York:
“I think the probability of a June rate cut is pretty low. Just take a look at the minutes from the Fed’s most recent policy meeting (April 30 and May 1). There appears to be a pretty clear consensus to continue chasing a 2% inflation target, even if it takes longer than initially thought. Rate hikes aren’t off the table, either, in the event that persistent rates in the 5.25% to 5.50% range don’t appear to have the same impact that they once did.
The most probable outcome is that the Fed doesn’t change rates. Mortgage rates track extremely closely with the Fed’s benchmark rate. Since the Fed completed the bulk of its aggressive rate hikes in spring 2022, average 30-year fixed-rate mortgage rates have hovered around 7% pretty consistently. I’d expect to see them stay there if the Fed keeps its benchmark rate the same at the upcoming meeting.”
Find out the best mortgage rates you could qualify for now.
Van Hesser, chief strategist at Kroll Bond Rating Agency:
“No (the Fed will not cut rates). Inflation remains meaningfully above the Fed’s 2% target, and it is taking longer than usual for restrictive rates to slow the economy. That has a lot to do with the extraordinary amount of stimulus deployed in the pandemic era.
Over the near term, with the Fed keeping rates elevated, we do not expect mortgage rates to fall materially. As the economy slows in 2024’s second half and the Fed begins to ease monetary policy, we would expect mortgage rates to fall gradually and modestly but remain well above the sub-3% lows hit during the pandemic.”
Emily Overton, capital markets analyst at Veterans United Home Loans:
“It is widely expected that the Federal Reserve will keep rates unchanged at this month’s meeting. While this decision is expected, markets eagerly anticipate what the Fed’s new dot plot and summary of economic projections will reveal.
Markets currently anticipate one cut this year, so if the Fed keeps three cuts on the table, we should see a small improvement in mortgage rates. However, if the Fed were to match market expectations, then mortgage rates should remain relatively unchanged.”
The bottom line
The consensus among these experts suggests the Federal Reserve is likely to keep the federal funds rate where it is, but it could lower rates later in the year. Consequently, mortgage rates are likely to stay in the current 7% range, with little room to drop much lower, at least in the near future, experts say.
“If a prospective buyer is looking to buy a home this year, waiting for lower rates may not necessarily result in more savings as rates are likely to hover near current levels,” says Overton. “For a seller, waiting for home prices to rise may also not be a feasible option because we haven’t seen a huge uptick in buying activity, and recent data suggests home prices may have peaked as delistings and price drops are increasing.”