Mastercard is hitting back on media reports circulating last week that said the credit card processing giant along with rival Visa plan to raise credit card network and interchange “swipe” fees that merchants pay for card transactions.

“Unfortunately, the story is wrong,” Mastercard said in a Sept. 5 website statement. The statement refers to an Aug. 30 Wall Street Journal report that Visa and Mastercard – which dominate the card processing market with an 80% market share – intend to begin raising fees on merchants in October and April. Several other media outlets also picked up the WSJ story.

The news comes amid concerns that America's credit card debt, which recently surpassed $1 trillion, continues to rapidly increase. Merchants can pass some or all of the swipe fees that they are charged on to credit card users.

“The reporting relies upon a report produced by an advisory firm advocating for legislation currently under consideration in Congress,” Mastercard said in the statement. “Mastercard is not raising interchange rates in the U.S. this fall and has no plans to do so. Mastercard is not raising network fees in the U.S. required for the processing of Mastercard transactions this fall.”

The company said, however, that the authorization optimizer service “is the only Mastercard fee noted in the study cited by the journal” but that it is not related to interchange fees. “This service is designed to reduce the likelihood that subscription and recurring payments will be declined, with any related fees being de minimis in scope,” the company said.

A Visa spokesperson said in a statement that its overall interchange fees have remained flat for more than a decade and that over the past few years the company has lowered interchange rates for the vast majority of small businesses and in key segments such as supermarkets and quick service restaurants.

The spokesperson referred Kiplinger to a Visa blog to “set the record straight on recent misleading press coverage.” In the blog, the company said that since 2012 it has seen a 180% increase in Visa payment volume.

“Despite strong growth in the use of Visa cards, our overall interchange fees on Visa transactions have been flat for the past decade. Moreover, over the past three years, Visa has introduced programs to lower interchange for the vast majority of small businesses in the United States,” the company said.

Last year, for example, Visa lowered interchange 10% for 90% of US businesses to help with their recovery and growth, it said. “Efforts by special interest groups to challenge these facts in the press are simply inaccurate and disappointing,” Visa said.

New legislation seeks to increase competition

Citing the WSJ article, two U.S. Senators pushed back last week on the reported fee hikes, urging Visa and Mastercard to withdraw any such plans as they would result in fees ultimately being passed on to consumers in the form of price hikes.

“We strongly urge Visa and Mastercard to withdraw their plan to raise credit card fees on small business owners and hard-working American families,” said senators Roger Marshall (R-KA) and Dick Durbin (D-IL) in a statement. “With small businesses and families already dealing with high prices on groceries and gasoline, this hidden credit card fee increase couldn’t come at a worse time.”

The senators are the lead sponsors of the recently reintroduced Credit Card Competition Act, a bill that seeks to increase industry competition by requiring major card-issuing banks to offer a choice of at least two networks to process transactions.

Mastercard noted in the statement that Congress is considering legislation that could potentially lower costs for merchants. “Yet it fails to mention the negative consequences for consumers – compromised security, a loss of rewards programs and higher prices on goods and services,” the company said.

“Whether businesses are considering implementing a specific service or Congress is considering legislation, we believe these activities should only take place based on an accurate understanding of the facts and how our industry works,” Mastercard said.

Credit card fees have been a hot topic on the state level as well. New Jersey recently became the latest state to pass a law that limits the amount of card swipe fees that businesses can pass on to customers. Swipe fees can create financial hardships for consumers, said N.J. Assemblyman Sadaf Jaffer in a statement endorsing the new law.

According to a Bankrate study, 35% of Americans carry credit card debt from month to month, which can hold people back from achieving their financial goals. One of the first steps you can take to help pay off credit card debt is knowing your credit score and assessing your options.

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Should you rely on credit, debit, or cash to manage your finances? Each method has pros and cons. Your best bet is to stay flexible. 

Cash, Credit or Debit? 

These days, your payment options usually boil down to paper, plastic or digital. You can fork over hard cash or a check, swipe or tap a debit card, or use a payment app. And more consumers are relying on rewards credit cards to offset the rising cost of travel and shopping. Most people employ a range of options. 

We've outlined the benefits and pitfalls of each to help you choose the best payment methods for you. And since peer-to-peer (P2P) payment methods like Venmo and prepaid cards are on the rise, you'll find them here too. With payments becoming more complex and varied, you have much to consider.

The Credit Card Advantage

For disciplined spenders, credit cards have the edge. A big plus is the potential to earn hundreds — or even thousands — of dollars in rewards each year. Some of the best cash back credit cards can get you between 2% and 6% back on supermarket purchases, gas and everyday spending. Frequent travelers may choose to use travel rewards credit cards that earn points or miles that are redeemable toward flights, hotel stays and other travel-related purchases. Best yet? You can get bonus deals worth free flights or hundreds of dollars just for signing up for some of these cards.  

If a thief gets hold of your credit card or card data, you have stronger legal protections than with a debit card. Your liability is capped at $50. And card networks American Express, Discover, MasterCard and Visa all have zero-liability policies that protect credit card holders in case of fraudulent purchases. If you report any credit card lost or stolen before any unauthorized charges appear, or if only the card number — but not the physical card — is stolen, you’ll have no liability. If you find an error on your credit card bill — say, a duplicate charge or one for an item you never received — you have the right to dispute the charge and withhold payment on it until the card issuer resolves the case.

If you have racked up debt on another credit card, or if you have a high-interest loan that you could pay off in 15 to 21 months, then balance transfer credit cards may give you relief. You’ll still have to pay a fee for the transfer, often around 3% of the total transfer amount. But unlike cash or debit cards, balance transfer cards can bring real peace of mind when interest rates are high. 

The downsides. If you don’t pay your bill in full, interest will kick in — typically on any unpaid portion of the balance. And in the next billing cycle, you’ll incur interest on new purchases starting on the date you make them. Sometimes you’ll pay additional fees if you use a card. Retailers may pass on fees of up to 4% to customers who use Visa or MasterCard, as long as such businesses clearly post their policy and don’t run afoul of laws in several states that prohibit the practice. Plus, if you pay your credit card bill late, you could be hit with a penalty as high as $41. (Late payments also hurt your credit score.)

If you think you’ll lose control of your spending with a credit card, consider keeping one around and using it, say, only for gas or other regular purchases that don’t tempt you to overspend. A history of on-time payments on a credit card helps boost your credit score — and a high credit score qualifies you for the lowest interest rates on mortgages and other loans. 

The Discipline of Debit Cards

If you like the convenience of paying with plastic but prefer to spend within the limits of your bank balance, you probably tend to reach for your debit card when you’re at the register. And when you pay with a debit card (as with a credit card), you can track your spending by eyeballing your monthly statement.

Some checking accounts pay an enticing interest rate on the balance, as well as refund out-of-network ATM surcharges if you use your debit card several times a month and meet other requirements. 

Many institutions halted their debit rewards programs years ago, and the programs that remain aren’t typically as lucrative as those offered by the best credit cards. But it’s worth checking whether your bank offers discounts at certain merchants or points for the money you spend using your debit card. 

One remaining rewards program is helpful for vehicle owners; it links an American Express, MasterCard or Visa debit or credit card with Shell’s Fuel Rewards program. When you spend a specified amount on your card at participating restaurants and merchants, you’ll get a discount on gas at eligible Shell stations. For every $50 spent on dining, for example, you’ll get 10 cents off per gallon. And just for being a member, you’ll get at least 3 cents off per gallon every time you fuel up.

For consumers concerned about the environment, there are green debit cards that pay between 1% and 6% cash back for sustainable purchases or services. For example, you get cash back for taking public transit, charging an electric car, or shopping at online secondhand stores like Threadup. 

The downsides. Legally, debit cards have weaker fraud protections than credit cards. Your liability is capped at $50 in unauthorized charges if you notify your bank within two business days of learning that your debit card has been lost or stolen, but you could be on the hook for up to $500 if you report a missing card after those two days have passed. And if you wait more than 60 calendar days after your statement is sent, you could possibly be responsible for all the money stolen from your account.

If you report a missing debit card before any suspicious charges appear, you’ll have no liability. And if your card number, but not the card itself, is used fraudulently, you won’t be responsible for unauthorized charges if you contest them within 60 days of the statement containing them having been mailed to you.

In practice, your bank will likely refund any unauthorized charges as long as you notify it promptly of a lost or stolen debit card. But you may have to wait several days to get the money back in your account.

It’s tempting to spend more than you have in your checking account if you enroll in overdraft protection, and the fees can be ugly, up to $35 a pop if the bank covers the overdraft for you. Arranging an automatic transfer of money from savings to checking in case of an overdraft can also incur charges of as much as $12 per transfer. (If you have no overdraft protection, merchants will decline your debit card.)  

Cash Is Waning

Consumers continue the pre-pandemic trend of relying less and less on cash payments. The use of cash declined from 31% of consumer transactions in 2016 to 18% in 2022, according to a study by the Federal Reserve Bank of San Francisco. 

Cash, though, is still useful; it is the ultimate budgeting tool because once it’s gone, it’s really gone. “It is very hard to fully comprehend the amount of money you are spending when you never physically possess it,” says Robert Solimano, a certified financial planner and founder of Angel Oak Financial Services. He counsels young clients to use cash whenever possible, “so that they may feel the pain of actually being separated from the money they earn.”

One of the easiest tried-and-true savings methods, the envelope budget, is based on cash purchases. For each paycheck, put your cash in envelopes according to their purpose, such as needs like rent and groceries, savings, and things you want but could live without. This method quickly helps discipline impulsive buying and encourages saving.

Another benefit of paying with cash? It could earn you a discount. Merchants are charged fees each time you use a credit or debit card, so some smaller retailers charge less to customers who hand over cash. Some gas stations, for example, shave off a few cents per gallon of gas if you make a cash payment.

The downsides. The average fee for withdrawing cash from an ATM outside of your bank’s network — including the charge from the ATM’s operator as well as one from your own bank —  hit a record high of $4.66, according to a 2022 survey from Bankrate.com. If you frequently pay with cash, you’ll benefit from using a bank that has a wide network of ATMs in your area or that reimburses fees for out-of-network ATM with­drawals. Online banks tend to have more-generous reimbursements than big national banks. 

Cash is immune to the data breaches that plague credit card users. But remember, if your credit or debit card is hacked or goes missing, you have liability protection. Lose a wad of cash, and you will probably never see it again.

Peer-to-Peer (P2P) Payments

Cash may be your first choice to pay the babysitter or reimburse a coworker for picking up the tab at lunch. But peer-to-peer payment tools, such as PayPal, Cash App, Apple Cash and Venmo (owned by PayPal), have made strides in mimicking the speed and ease of moving plain old cash. And in some ways, they’re more convenient. For example, roommates can easily split the cost of utilities or rent, or you can zap money to your sister on the other side of the country without pulling out your checkbook. Typically, you’ll need the recipient’s e-mail address or phone number to send money, and he or she will have to be comfortable sharing account information with the app. 

Banks also offer P2P services through the Zelle app. Over one thousand banks — including Bank of America, Capital One 360, Chase, U.S. Bank and Wells Fargo — allow customers to send and receive money instantly with their bank accounts on the Zelle platform.  

Depending on the service, you may have a choice of linking directly to your bank account, debit card, or credit card or transferring money from your bank account to be stored by the service until you’re ready to use it. Cash App and Venmo charge 3% of the amount sent if you use a credit card. Since Apple Cash and Zelle do not draw funds from credit cards, this fee does not apply when using those apps.

Some apps have tacked on services and payment methods that may complicate security, tax reporting and even air quality. For example, Cash App allows users to pay or receive funds in the form of Bitcoin, a notoriously volatile cryptocurrency and a significant source of pollution. Users may also invest funds in the stock market.

These payment apps are enormously popular; A LendingTree study in 2022 found that 84% of U.S. consumers had used P2P apps. 

The downsides: P2P apps come with significant privacy and security risks. Almost a quarter of users have mistakenly sent money to the wrong person, and 15% have been victims of fraud, according to LendingTree. 

According to the Consumer Financial Protection Bureau (CFPB), funds held in these P2P apps may lack federal depository insurance. So if the financial institution underlying the app goes bankrupt — as Silicon Valley Bank did in 2023 — account holders would not benefit from FDIC insurance up to $250,000.

Most of the apps do a poor job of explaining fees and policies or alerting users to security breaches. A 2023 study by Consumer Reports found that of four major P2P apps, Apple Cash did the best job of protecting consumers. 

             Consumer Reports Ratings of Evaluated P2P Payment Services

The Prepaid Option

A prepaid debit card lets you load a specific amount onto your card, which you spend down every time you use the card. Unlike a traditional debit card, a prepaid card is not tied to a checking account. But many prepaid cards offer similar functions, such as direct deposit and the ability to make purchases, pay bills and withdraw cash at the ATM. A prepaid card that carries no overdraft option may be a good choice if you have trouble staying within a spending limit. The fees can add up, though, with some cards levying monthly and cash-reload fees, plus other charges. 

These cards may be useful for consumers who have poor credit or who want to stick to a strict budget.

The downsides: Federal rules require prepaid cards to disclose account terms, limit the fees and interest associated with an overdraft line of credit and provide timely dispute resolution. But overall these cards lack the security of a debit or credit card in the event of fraud or theft. And these cards are not always backed by the FDIC; if the bank that issued the card fails, you may not get your money back as you would with an FDIC-insured account.  

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The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired.

The credit cards in your wallet are packed with insurance, identity-theft protection and a slew of perks — including exclusive access to concerts and sporting events, discounts on products and services, and free memberships. But keeping track of all of these credit card benefits isn’t always easy because some perks come from your card network and some come from your card issuer — and the benefits vary depending on which plastic you’re packing.

Banks, credit unions and other financial institutions interact with four card networks: American Express, Discover, Mastercard and Visa. Generally, these networks have tiered benefits connected with certain cards. For example, Visa Signature cards offer more benefits than traditional Visa cards, including extended warranty protection and various travel-related benefits. Mastercard works similarly — World and World Elite cardholders have more benefits than standard Mastercard holders.

However, an issuer can still pick and choose which benefits to offer potential cardholders, says Senitra Horbrook, credit cards editor at The Points Guy, a consumer travel website. For example, the Chase Sapphire Preferred card has the same long list of travel and purchase protections as a Visa Signature card. But the Chase Freedom Unlimited card, which is available as a Visa Signature card, doesn’t have the same benefits, because Chase decided not to make them available for that card.

American Express and Discover act as both network and issuer. American Express offers travel insurance, purchase protections and other services, but Discover axed those benefits in 2018 and has not restored them.

Below we’ve gathered a list of valuable credit card perks and protections. To see which benefits come with your card, check your card benefits guide on the issuer’s website.

Travel Help

With delays and cancellations for air travel worse than ever — especially during the winter storms, your card’s travel insurance could cover various elements that could go wrong with your trip. 

Insurance for trip cancellation or interruption kicks in if your prepaid or nonrefundable flight is canceled or your trip is cut short due to events that are out of your control — think severe weather, mechanical failure, or a medical emergency —and it’s considered a covered event under your policy. An expansive policy may also reimburse you for prepaid hotel costs. All coverage is secondary to any reimbursement you get from the airline or hotel, and you’ll need to keep detailed receipts to ensure a successful claim. If you’re unsure of what’s covered, call your issuer. 

Although the coverage limits vary, you will generally get the most-comprehensive insurance benefits with travel credit cards that have annual fees. For example:

• The no-fee Chase Freedom Unlimited Visa card comes with coverage for trip cancellation or interruption for up to $1,500 per person and $6,000 per trip for non-refundable passenger fares.
• the Chase Sapphire Preferred Visa ($95 annual fee) ups the limits to $10,000 per person and $20,000 per trip for fares as well as other nonrefundable expenses, such as hotels and tours. This card also offers baggage-delay insurance and trip-delay reimbursement.

Your card may also offer benefits that can get you through airport security or customs quicker. Several travel cards offer a statement credit to cover TSA PreCheck ($85 every five years) or Global Entry ($100 every five years). As a bonus, your card may cover you for CLEAR ($189 a year), the biometric identification scanner at the airport, in full or at a discounted rate.  

Your card issuer wants to be your travel agent, too. For example, American Express, Bank of America, Capital One and Chase all have travel portals where cardholders can book flights, hotels, rental cars and more by using their credit card or by redeeming the points and miles they have earned. And card issuers are providing incentives for card members to do so. The Capital One Venture Rewards Visa ($95 annual fee), for example, gives cardholders five miles per dollar spent on travel booked through Capital One Travel, through May 16, 2023. Before signing up, make sure you understand how best to use credit card portals to book travel. 

If you decide to book a rental car either through your credit card travel portal or directly with a rental car company, you may also have rental car insurance as a perk.

See our guide to the best travel rewards credit cards if you want to combine these benefits with rewards.

Dining and Entertainment

Food Perks
Has ordering takeout been part of your work-from-home routine? Food-delivery services are on the benefits menu, too.

Food-delivery memberships and discounts are among the trendy benefits now, says Ted Rossman, senior industry analyst for Bankrate.com. For example, Chase and DoorDash extended their partnership to offer eligible cardholders a complimentary DashPass. The membership unlocks free deliveries and lower service fees. But not all cardholders are treated equally. 

Chase Freedom and Slate cardholders can access a complimentary three-month DashPass membership — and once the three months are up, cardholders get a 50% discount on the pass for the next nine months. If you spring for the Chase Sapphire Preferred or Sapphire Reserve ($550 annual fee for Reserve), you’ll get free access to DashPass for a year. Chase Freedom, Slate and Sapphire cardholders can also sign up for a complimentary membership, ranging from three months to a year, to grocery deliverer Instacart. (Chase cardholders must activate the Instacart offer by July 31, 2024, and the DoorDash offer by December 31, 2024.) Bank of America cardholders can sign up for a free year of Grubhub if they enroll by April 20, 2023. 

Subscription Perks
If you’re looking to catch a break on your streaming or subscription bills, the American Express Platinum card ($695 annual fee) offers up to $240 a year in digital subscription credits. A $20 monthly credit is applied if you use your card to pay for Disney Plus, ESPN Plus and Hulu (or enroll in the Disney Bundle, which packages them together), The New York Times, SiriusXM radio, Audible, or Peacock. If you’re curious about the true value of the credit, the Disney Bundle that includes Hulu’s no-ad version, for example, is $19.99 a month. (Your rewards card may offer cash back for your favorite streaming services.)

Culture and Entertainment Perks
Your card network or issuer may offer eligible cardholders early access to concert or sporting event tickets. Citibank cardmembers, for example, can buy presale tickets to concerts, food and wine festivals, and more. The current concert lineup includes Shania Twain, Rod Stewart, the Dave Matthews Band and Carlos Santana live at his Las Vegas residency. Golfers who hold World and World Elite cards from Mastercard can sign up for experiences ranging from golfing with a professional to playing private courses (prices vary by course). 

Museum lovers aren’t left out. Recently, Capital One partnered with the Cultivist, a global arts club offering access to hundreds of arts events, to provide a free, six-month Enthusiast membership. Priced at $40 a month, the Enthusiast membership grants access to hundreds of museums across the globe, including the Metropolitan Museum of Art and Guggenheim in New York City and the Louvre and Musée d’Orsay in Paris. The offer expires on June 22, 2024. 

For Bank of America members, the Museums on Us program is still going strong, with access to more than 200 museums across the U.S. covering art, science and history. 

Shopping Benefits

Your “retail therapy” habit can get a boost, too. Issuers such as American Express, Capital One and Chase offer digital coupons to holders of their debit and credit cards. Simply sign in to your account, browse the current offers and add them to your card. Offers include cash back or statement credits at clothing stores—as well as restaurants, hotels and rental car services. Current offers from American Express, for example, include a $10 statement credit if you spend $50 or more at Under Armour and a $25 credit if you spend $75 or more at Tommy Hilfiger. Note that for each issuer, offers change frequently, and each coupon has an expiration date  

To get your items faster, get a free ShopRunner membership through your Mastercard World or World Elite, American Express, or Chase credit card. ShopRunner partners with more than 100 retailers to offer free two-day shipping with no minimum purchase at most participating stores. Partner retailers include department stores Bloomingdale’s and Neiman Marcus, as well as various cosmetic companies. Mastercard and Chase users are entitled to a free one-year membership; American Express members receive a lifetime membership.

American Express Platinum cardholders who pay for a Walmart Plus membership can essentially get it for free if they cover the monthly fee with their Platinum card. American Express reimburses the fee as a monthly statement credit. The membership, which costs $98 a year, provides free shipping. 

If your items are damaged — or someone steals them — you may have purchase protection if you bought them using an eligible card from American Express, Bank of America, Chase, Capital One and others. The policies typically last 90 days after purchase, and the standard policy has a maximum coverage of $500 per item, according to WalletHub. But you could have a higher coverage limit or more time to file a claim. For example, the Chase Sapphire Preferred card has a 120-day purchase-protection policy. 

Also double check for extended-warranty policies. Most major card issuers offer this benefit and extend an item’s warranty by one year. Citi extends the warranty for eligible cardholders for up to two years after the manufacturer’s warranty expires. The Amex Platinum card has a coverage limit of $10,000 per covered purchase, with the same coverage as the original manufacturer’s warranty. To help avoid any snafus, keep your original warranty documents in a safe place, such as your digital cloud storage. 

Most holders of Chase, American Express and U.S. Bank consumer credit cards have access to a buy-now, pay-later platform as part of their card’s features. You can elect to use these services after you’ve made your purchase worth a total of $100 or more. The portion you separated to pay via installments is not subject to your card’s regular interest charges, but you’re charged a fee. When it comes time to pay your monthly bill, your installment amount, including the fee, is added to your card’s minimum payment amount.

Credit Monitoring

Your benefits may also include credit monitoring and identity-theft protection. Capital One’s CreditWise and Chase’s Credit Journey, for example, offer cardmembers — and non-cardmembers — free credit monitoring. The services track your Social Security number, scan the “dark web,” and send alerts about credit inquiries or new accounts. Both services also let you keep up with changes in your credit score. Mastercard holders can sign up for the card network’s identity-theft protection service for free. 

You can cover your smartphone with phone insurance. These policies typically come with a deductible of up to $50 or more, and there are limits on how many claims you can submit. Chase’s Freedom Flex, for example, offers coverage up to $800 per claim with a $50 deductible for a stolen or damaged phone; you must pay your monthly bill with your eligible card to qualify. You’re allowed to make two claims in a 12-month period. 

The Best Benefit of All? Fraud Protection

Security is one of the most valuable credit card perks. Under the Fair Credit Billing Act, if someone uses your credit card fraudulently, federal law limits your liability to $50. American Express, Discover, Mastercard and Visa assume all liability for unauthorized purchases.

For extra protection, some credit card issuers allow you to disguise your card number with a virtual number. Most Capital One and select Citi cards offer this feature, which randomly generates virtual numbers that are linked to your credit card.

For online shopping, a credit card’s limited liability is essential because data breaches are an ever-present danger. If your debit card number (but not the card itself) is stolen, you must report the fraud within 60 days of your bank statement being sent to you to avoid liability. If the debit card is physically stolen, your liability is capped at $50 if you report it within two days. Notifying your bank between three and 60 days after the fraud occurred could increase your liability to $500, and beyond 60 days your losses could be unlimited.

Use Built-In Rental Car Insurance

Car rentals have been extra pricey ever since rental fleets downsized during the pandemic. But you can cut some of your costs by waiving the collision damage coverage (often called CDW) on eligible cars and paying for your rental with a credit card that offers rental car insurance as secondary coverage. (Credit card policies typically don’t extend CDW coverage to exotic or antique cars, or to luxury brands such as Jaguar or Tesla.)

Credit cards with rental CDW coverage include the Chase Freedom Unlimited (no annual fee), Chase Sapphire Preferred ($95 annual fee), American Express Blue Cash Preferred ($95 fee, waived for the first year), Amex Platinum card ($695 fee) and a host of others. Your personal auto insurance policy serves as primary coverage, meaning any costs related to a rental’s damages or theft are paid out from your auto insurer before coverage from your credit card kicks in. 

What about extra liability coverage? That is generally covered through your auto insurer as well, but call to verify. Most cards don’t cover you for liability, so if you have a license but not a car — and therefore no auto insurance — don’t waive the liability coverage even if you reserve the car using a card that covers collision damage. 

However, if you rent a car while vacationing overseas, spring for full collision and liability coverage. Your credit card may cover you, but that’s not always the case. For example, the American Express Platinum card doesn’t offer rental car coverage in Australia, Italy or New Zealand. Mastercard and Visa also exclude coverage in certain countries.

Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a credit card, check its current terms and conditions with the issuer.

Rates checked as of October 31, 2023.

This article only highlights our picks for the best balance transfer credit cards. We may get compensation if you visit partner links on our site. We may not cover every available offer. Our relationship with advertisers may impact how an offer is presented on our website. However, our selection of products is made independently of our relationship with advertisers.

If you have high-rate credit card debt, consider refinancing it with a balance transfer credit card. Especially as interest rates tick up, carrying a balance on a credit card becomes more burdensome. Average annual percentage rates on credit cards run from about 15% to 20%, and some cards have rates of nearly 30%.

While you may be tempted by cash back or other offers made by rewards credit cards, it is better to stay focused on paying off your debt first.

With a balance transfer card, you can take advantage of a 0% APR interest rate for as long as the first 21 months. That could shave hundreds or even thousands of dollars from your interest payments, enough to offset the balance transfer fee of 3% to 5% and save you money.

But to make the most of a balance transfer — and to make your investment in that transfer fee pay off — you need to pay off the debt before the 0% window expires. After the 0% period ends, the APR on the remaining balance typically jumps into the double digits.

We’ve rounded up the best credit cards for balance transfers. All of them feature extended 0% introductory windows, and they charge reasonable balance-transfer fees of 3%. (With some cards, you must promptly make the balance transfer after opening the card to capture the 0% rate or the 3% fee — otherwise, you pay a higher APR or fee.) If you’re looking for a great rewards credit card instead, see our guides to the best cash back credit cards and the best travel rewards credit cards.

We select balance transfer cards with 0% introductory windows and balance-transfer fees of 3%. (With some cards, you must promptly make the balance transfer after opening the card to capture the 0% rate or the 3% fee–otherwise, you pay a higher APR or fee.) Interest rates, fees, rewards and other terms listed in this article are subject to change. Before you apply for a credit card, check its current terms and conditions with the issuer.

0% APR for 21 Months

• Interest rate: 0% for 21 billing cycles on purchases and balance transfers, then 18.74% to 29.74% variable APR.
• Balance transfer fee: 3% ($5 minimum).
• Annual fee: None.
• Penalty APR: None.
• Late payment fee: Up to $41.
• Perks: This card offers up to $600 reimbursement if your cell phone is stolen or damaged and you use the card to pay your wireless bill; the deductible is $25, and you get up to two claims paid per 12 months.

• Interest rate: Balance transfer 0% introductory APR for 21 months from date of first transfer when transfers are completed within 4 months from date of account opening. After that, your APR will be 19.24% to 29.99%, based on your creditworthiness. For purchases, 0% introductory APR for 12 months from date of account opening. After that, your APR will be 19.24% to 29.99%, based on your creditworthiness.
• Balance transfer fee: 3% ($5 minimum); after four months of opening the account, it is 5% with a $5 minimum.
• Annual fee: None.
• Penalty APR: If you make a late payment during the introductory period you may lose the 0% interest rate.
• Late payment fee: Up to $41.
• Perks: Rather than offer cash back or other rewards, this card focuses on giving you a long balance transfer period for a 3% fee.

18 Months 0% APR

• Interest rate: Balance transfers: 0% intro APR only on Balance Transfers for 18 months; after that, the variable APR will be 19.24% to 29.24% variable, based on your creditworthiness. The ongoing variable APR for purchases is 19.24% to 29.24%. If you transfer a balance, interest will be charged on your purchases unless you pay your entire balance (including balance transfers) by the due date each month.
• Balance transfer fee: 3% ($5 minimum) within the first 4 months of account opening, then 5% ($5 minimum).
• Annual fee: None
• Penalty APR: Up to 29.99% if you pay your bill late.
• Credit rating: Solid cash back cards usually require a good to excellent credit rating; Citi recently announced that it will also approve qualified applicants with "fair" credit ratings for this card.
• Late payment fee: Up to $41; returned payments may also be charged up to this amount.
• Perks: total 2% cash back on every purchase — 1% at the time of purchase and 1% when you pay for those purchases.
  

• Interest rate: 0% Intro APR for 18 months from account opening on purchases and balance transfers; variable APR of 20.49% to 29.24% on balance transfers and purchases after the introductory period ends.
• Annual fee: None.
• Penalty APR: Up to 29.99% if you fail to make the minimum payment on time or make a payment that is returned unpaid to Chase.
• Late payment fee: Up to $40.
• Perks: If you pay your bill on time and spend $500 in the first six months, Chase automatically reviews whether you are eligible for a higher credit limit. If you make purchases of at least $1,000 in an account anniversary year and make all payments on time, you may get a 2% reduction of the standard APR for purchases and balance transfers (your APR cannot be lower than the prime rate plus 9.74%).
• Additional perks: Cardholders enjoy three free months of membership with DashPass — which provides reduced fees on orders from delivery service DoorDash — and 50% off DashPass for the following nine months. Activate your DashPass membership by December 31, 2024 to be eligible. . Chase credit cards also offer excellent rental car insurance.
• Member FDIC

• Interest rate: 0% for 18 months on purchases and balance transfers, as long as the transfer is made within 60 days of opening your account. After 18 months, you pay the standard variable rate — recently, it was 16.24% to 26.24%.
• Balance transfer fee: 3% of the amount transferred ($10 minimum).
• Annual fee: None.
• Penalty APR: None; paying late won't automatically raise your interest rate (APR).
• Late payment fee: Up to $40.
• Perks: Free FICO score.

How Do Balance Transfers Work?

A balance transfer is a credit card feature that allows you to move debt from one credit card account to another. While most credit cards allow you to request a balance transfer at any time, some offer introductory 0% APR promotions to make it worth your while.

These promotions typically last between 12 and 21 months and often come with an upfront fee of 3% to 5% of your transferred balance. Once the transfer has been completed, the fee will be tacked onto the balance on the new card.

Then, you can pay down the debt interest-free until the promotional period expires, at which point any remaining balance will be subject to the card's regular balance transfer APR.

Balance transfer credit cards offer 0% APR balance transfer promotions to new cardholders. But in many cases, credit card issuers may also offer low or 0% APR promotions to existing customers.

Keep in mind, though, that you typically can't transfer a balance from one card to another if they're issued by the same bank. Also, unless your card also has a 0% APR promotion on purchases, your card issuer will typically start charging interest on those transactions immediately instead of giving you a grace period — that is, until you pay off your balance transfer debt.

In addition to credit card debt, some card issuers may also allow you to use a balance transfer to pay off medical bills, auto loans and more.

How to Perform a Balance Transfer

Depending on your situation and needs, you can complete a balance transfer in a few different ways.

When you apply for a new credit card

If you're applying for a credit card, you may be able to request the transfer during the application process. If this is the case, you can provide the account number and the amount you want to transfer for each debt — in some cases, the card issuer may limit how many accounts you can pay off at once.

Then, complete the rest of the application. If you're approved, the card issuer will process the request.

Through your online account

Sometimes, credit card issuers offer balance transfer promotions to existing customers, which you can activate through your online account. Log in to your account, select the card you want to use, then search for current promotions.

Then, provide the required information, such as an account number and amount, to complete the request. If your card issuer approves your transfer, it'll handle the payment to your other card or loan.

Use a balance transfer check

From time to time, card issuers will send out balance transfer checks to customers in the mail — some may even allow you to request a check through your online account. You can use the check to pay off your desired balance or even address it to yourself and deposit the funds into your checking account, then make an online payment.

With this option, you don't need to provide your account numbers to your card issuer.

Call your card issuer

If you prefer personal service, call the number on the back of your credit card or your card issuer's main customer service line to request a transfer over the phone. Be sure to have your account numbers on hand and the amount you want to pay off.

How Long Does a Balance Transfer Take?

There's no hard-and-fast rule for how long a balance transfer will take — the timeline can vary for each credit card company. In general, though, it can take anywhere from a few days to several weeks.

Here's what you can expect from the top credit card companies:

• American Express: Typically five to seven days, but it can take up to six weeks in certain circumstances
• Bank of America: Typically two to 14 days
• Barclays: Up to four weeks
• Capital One: Typically three to 14 days
• Chase: Up to 21 days
• Discover: Typically four days, but newly opened cards take 14 days before a balance transfer will begin processing
• U.S. Bank: Up to 14 days
• Wells Fargo: Up to 14 days

Pros and Cons of a Balance Transfer

A balance transfer may help you save money and simplify your debt situation, but there's no guarantee you'll get what you need, and there are other potential roadblocks you'll encounter during the process.

Pros

• You can save hundreds on interest: Depending on how much debt you're transferring and the original interest rate, you could save hundreds of dollars in interest charges by using a 0% APR promotion.
• It consolidates multiple balances into one: Using a balance transfer credit card to pay off multiple balances can help simplify your debt payoff plan, making it easier to keep track of your monthly payments and progress.
• You may benefit from other card features: Some balance transfer credit cards also offer welcome bonuses, 0% APR promotions on purchases, ongoing rewards and other valuable features you can enjoy.

Cons

• There are no guarantees: If you're applying for a new credit card, there's no assurance that the card's credit limit will be high enough to cover your full debt balance. You'll also typically need good credit to get approved — according to FICO, that's a credit score of 670 or higher — and even then, other factors may get in the way of approval.
• It could damage your credit temporarily: If you transfer balances from multiple credit cards to a single account, it could cause your credit utilization ratio — the percentage of your available credit that you're using at a given time — to spike, damaging your credit until you pay down the balance.
• It's not without costs: You'll usually have to pay a balance transfer fee, which can be hundreds of dollars, depending on how much debt you're transferring. Additionally, if you're not diligent with your payoff plan or you have too much debt to pay off, you may end up paying interest on at least some of the balance after the introductory period expires.

Is a Balance Transfer Right for Me?

A balance transfer isn't the right move for everyone, so it's important to understand your situation and goals to determine whether to use one. Here are some situations where it might make sense to request a balance transfer:

• You have a lot of high-interest credit card debt.
• You expect to be able to pay off the debt within a year or two.
• You have great credit (if you plan to apply for a new card).
• You have your spending under control and aren't in danger of racking up more debt after you make the transfer.

Alternatively, you may want to think twice about using a balance transfer to pay off debt if:

• You don't have a lot of credit card debt.
• You could pay off the debt in a handful of months.
• Your credit is in less-than-stellar shape (if you're applying for a new card).
• You're not planning to pay off most or all of the debt within the promotional period.

Remember, a balance transfer doesn't fix the behavior that got you into debt in the first place. If emergency expenses blindsided you and you didn't have enough savings to cover them, try to focus on building your emergency fund. If you've racked up debt with overspending, consider taking a break from credit cards until you can get your spending habits under control, so you can avoid repeating the process.

As an independent publication dedicated to helping you make the most of your money, the article above is our view of the best deals and is not the opinion of any entity mentioned such as a card issuer, hotel, airline etc. Similarly, the content has not been reviewed or endorsed by any of those entities.

With the holiday shopping season approaching, you’ll need to decide not only what to buy but also how to pay for it. The decision will be even more important this year, when many shoppers will make their holiday purchases online. In the credit versus debit card debate, proponents of both sides have good reasons for embracing one method and rejecting the other.

The case for credit. The greatest advantage a credit card offers is security. Under the Fair Credit Billing Act, if someone uses your card number fraudulently to go on a spending spree, federal law limits your liability to $50. And many credit card companies extend their protection beyond that baseline. American Express, Discover, Mastercard and Visa assume all liability for unauthorized purchases.

The FCBA protections are especially important if you’re shopping online. If you use your credit card to make a purchase and have a billing problem with a merchant—including a dispute over unsatisfactory merchandise—the credit card issuer must investigate and resolve your complaint, and you can withhold payment until then.

In addition, credit cards may offer other protections, such as extended warranties and purchase protection, says Ted Rossman, analyst for Bankrate.com.

Credit cards also have more-generous rewards programs. Depending on the card, you can earn as much as 5% cash back (or, typically, five points per dollar) for spending on groceries, gas, restaurant meals and travel. Some cards earn up to 3% cash back on every purchase you make (see The Best Rewards Cards for You).

The case for debit. Although credit cards allow you to spread out payments over time, the costs can be steep if you don’t pay off your balance in full each month: Interest on credit card balances averages 16%. And missing payments, exceeding your credit limit or using too high a ratio of your available credit could hurt your credit score.

You avoid those pitfalls with debit cards. Because funds are taken directly out of your checking account when you use a debit card, the temptation to spend money you don’t have is removed. “In practice, debit cards are viewed as a debt-free payment method akin to cash, whereas a credit card could be used as a loan,” Rossman says.

Debit cards don’t offer the same legal protections as credit cards. They have stricter time frames for reporting fraud, which could leave you liable for substantial losses if you wait too long to report unauthorized use. If your debit card is stolen, you must report it within two days to get the same $50 limited liability. Notifying your bank between three and 60 days after the fraud occurred could cost you up to $500, and beyond 60 days your losses could be unlimited.

In practice, though, your bank will likely refund any unauthorized charges as long as you notify it promptly of a lost or stolen debit card. But it could take weeks to get your money back. And some debit card issuers offer additional protections. For example, Visa debit cards do not hold you accountable for fraudulent transactions if the transaction is processed by Visa—though you may not know which transactions are processed by Visa and which aren’t.

Credit card companies have been changing annual fees and beefing up rewards—or plan to roll out new cards later this year and next. Some of the changes affect some winners in our annual Best Rewards Credit Cards.

Good news for anyone considering the Alliant Cashback Visa, which won silver in our Flat-Rate Cash Back (Worth the Fee) category: There’s no longer a $99 annual fee. There’s also a new tiered rewards program with no cap on rewards. Before, rewards were capped at $250. Now you can earn either 2.5% cash back on all spending up to $10,000 (with purchases after that earning 1.5%) or 1.5% overall if you don’t qualify for tier-one rewards status. (See www.alliantcreditunion.org for details.) Current cardholders have automatically been enrolled in tier-one rewards to give them time to set up an Alliant high-rate checking account, which is a requirement to qualify for tier-one status.

Chase now allows holders of most of its co-branded travel cards to sign up for a free one-year DashPass membership that also comes with some reduced service fees. The cards on our best list eligible for the deal include the Southwest Rapid Rewards Priority Visa, Marriott Bonvoy Boundless Visa and World of Hyatt Visa.

The Capital One SavorOne Mastercard, which took silver in our Dining Rewards category, increased cash back on grocery purchases from 2% to 3% and now pays 3% on eligible streaming services, such as Net­flix, Hulu and Disney+. Subscriptions and purchases from Amazon Prime, AT&T TV and Verizon FIOS On Demand are excluded.

The American Express Platinum card (silver in Premium Travel Rewards) is raising its annual fee to $695 on January 1. But cardholders will now get an annual statement credit of $179 for a membership to CLEAR, the airport security clearance network. Cardholders can also earn up to $240 a year on subscriptions to the New York Times, Peacock, Audible and SiriusXM, along with other perks.

The price of bitcoin was already soaring when Tesla announced in February that it had bought $1.5 billion worth of the digital currency, sending its value climbing higher. The electric-vehicle maker said it would soon accept bitcoin as payment for its products, too. But in truth, Tesla was a tad late to the party.

Several well-known firms had already embraced bitcoin in one way or another. Massachusetts Mutual Life Insurance, a 170-year-old insurer, bought $100 million worth of bitcoin in late 2020 for its general investment accounts. MicroStrategy, a business services company, has been buying millions in bitcoin, which represents the majority of its cash reserves. And Mastercard and PayPal have each said customers will soon be able to use bitcoin to pay for purchases through their respective networks. All told, demand has driven up the price of the cryptocurrency by nearly 450% over the past 12 months. Its market value is just under $1 trillion. (Returns and data are through March 5.)

Does that mean it’s time for regular folks to buy bitcoin? Not necessarily. There are pros and cons to buying it, and its recent popularity doesn’t erase its drawbacks, whether you view it as an investment or as a currency that you can use to buy things.

What is bitcoin? The 11-year-old cryptocurrency was the first of its kind. It gets its name from the technology behind it—every transaction is encrypted by computer code, known as blockchain technology, which eliminates the need for a middleman or a central bank. Ethereum, bitcoin cash (a spin-off of the original bitcoin) and litecoin are other well-known e-coins.

What’s driving the price? There is a finite supply of bitcoin. Only 21 million tokens will ever be made, and nearly 19 million bitcoins are already in circulation, so there are fewer than 3 million left to be created. And the rules around how the tokens are created—they’re awarded to bitcoin “miners” who solve complicated math problems—along with other restrictions mean a dwindling number of tokens will be issued in the coming years. The final bitcoin will be minted more than 100 years from now, in 2140.

Such scarcity is driving demand, says Tom Jessop, head of digital assets at Fidelity Investments. The brokerage and investment firm launched a passively managed bitcoin fund with a minimum $100,000 investment requirement, targeted at institutions. Since then, Fidelity has seen a lot of interest from a diverse group of clients, including hedge funds, registered investment advisers, pension and endowment funds, and corporate clients.

Will other digital assets displace bitcoin? Scarcity and increased demand could help bitcoin stay dominant. Yassine Elmandjra, a cryptocurrency analyst at Ark Investments, believes bitcoin will capture the lion’s share of the market for digital assets over time. “There may be room for two to five additional currencies that capture 25% to 35% of the total market share,” he says.

Is bitcoin a good investment? It has been over the past 12 months. But some in­vestment professionals still view the virtual currency skeptically, including Matt Andrulot, executive director of research at Verdence Capital Advisors, an advisory firm for ultra-high-net-worth investors, in Hunt Valley, Maryland. “It’s volatile and speculative,” he says.

He’s right about the volatility. In just two weeks in January, bitcoin lost 25% of its value. During the pandemic sell-off in 2020, the price of bitcoin fell 49% from its peak to its trough (the S&P 500 index, by contrast, dropped 34%). And few holders are likely to forget its 83% fall between December 2017 and December 2018. Because bitcoin doesn’t generate any cash flow or earnings—and never will—its price is driven purely by demand, so it’s speculative. “Be prepared to lose the entirety of your principal,” says Thomas Stapp, a certified financial planner in Olympia, Wash.

That said, bitcoin could still have a small place in an investor’s portfolio. But given the sky-high volatility, it should take up no more than 1% to 3% of your assets, say many advisers. Limit your investment to an amount you can afford to lose, says Leo Marte, a certified financial planner in Huntersville, N.C. “That kind of mind-set will bring you to the right allocation for you.”

If you do invest, consider it exposure to an “alternative” asset class. Traditional alternative investments, such as gold or a basket of commodities, offer your portfolio diversification from stocks or bonds. Many investors hold gold, for instance, as ballast against market downturns or to hedge against inflation. Bitcoin’s unique characteristics make it more commodity-like than stock- or bond-like. In fact, the U.S. Commodity Futures Trading Commission considers virtual currencies to be commodities, and therefore subject to oversight under its authority.

On paper, bitcoin has superior properties as a store of value compared with gold. It’s scarce because of the finite supply; by contrast, gold miners regularly find new deposits. Bitcoin is portable and easily stored; in that regard, 100 gold bars might prove onerous. Plus, bitcoin is divisible to eight decimal places and can be easily transferred to others. However, it’s also three or four times more volatile than gold. But the more acceptance grows, says Fidelity’s Jessop, “the more bitcoin gets to become a superior store of value.”

Will bitcoin take off as a form of payment? There’s a lot of promise but little in practice so far. “You can’t go to Starbucks and buy a cup of coffee,” says Stan Kiang, director of exchange-traded funds at Aberdeen Standard Investments. “When that happens, I’ll be a believer.” Bitcoin is gaining some momentum on that front, though, as people buy crypto assets and either use them directly or convert them to traditional currencies to spend. The trend is “unmistakable,” says Raj Dhamodharan, head of Mastercard’s digital assets, blockchain products and partnerships, in a recent company blog post.

Spending bitcoin can involve some rigamarole. For a payment to go through the Mastercard network for a Starbucks latte, say, the dollar price would be translated into digital assets, then those digital assets would be exchanged for dollars at one of Mastercard’s crypto-payment platform partners (BitPay, Wirex or LVL) before the purchase is transmitted on the Mastercard network.

There may be tax implications, too. Because the Internal Revenue Service views digital currencies as property, they are subject to capital gains taxes. If you buy a cup of coffee using bitcoin, it’s akin to selling an asset to do so—you may have to report your cost basis and any potential long- or short-term gain or loss on the digital currency. That would make paying with bitcoin “challenging,” says Fidelity’s Jessop.

How can I buy bitcoin or invest in it? To buy the actual tokens, you’ll have to open an account at an exchange; Coinbase is the biggest. Digital assets in Coinbase accounts aren’t covered by any kind of insurance, but U.S. dollars in the accounts are FDIC-insured, up to $250,000. There’s an easier path, but it’s pricey. Grayscale Bitcoin Trust (symbol GBTC, $44, expense ratio 2.0%), an investment fund of sorts, holds actual bitcoin tokens. “Each share is backed by bitcoin,” says Rayhaneh Sharif-Askary, director of investor relations and business development at Grayscale.

The trust is a bit of a cross between a closed-end fund and an exchange-traded fund. It’s easy to buy and sell in a brokerage account. But you should be mindful of the premium you’ll pay: Over the past five years, the fund has traded at an average 38% premium to its net asset value, according to data provider Y Charts. But in volatile times past (namely 2017), the premium has reached 133%.

Over the past 12 months, GBTC gained 419%. That beat the S&P 500, of course, which rose 29%, but the bitcoin trust experienced three times the volatility, too.

The number of ways investors have to invest in Bitcoin has just grown by one.

The Osprey Bitcoin Trust (OBTC), which hit public markets this week, is the latest in a small group of funds that provide exposure to cryptocurrencies through their brokerage accounts. Specifically, OBTC allows investors to share in the ebbs and flows of Bitcoin.

That's fortunate, because the digital currency is swelling in popularity. On Friday, Feb. 19, assets invested in Bitcoin hit $1 trillion for the first time. If it were a publicly traded company, Bitcoin would be worth more than the likes of Facebook (FB) and Tesla (TSLA) by a couple hundred billion dollars.

The launch of OBTC is a welcome addition to the small existing stable of crypto-connected plays. But it also comes just a step short of the much-anticipated "holy grail" of Bitcoin investments.

Big Money Wants Bitcoin Now

Over the past year, Bitcoin prices have soared from below $4,000 in March 2000 to $53,000 more recently. And as we discussed in our 2021 outlook for Bitcoin, one of the driving forces behind this most recent rise in Bitcoin has been institutional interest.

And that remains the case.

Bank of New York Mellon (BK) and Mastercard (MA) are among the latest companies to join the fray, with the former starting a crypto unit to hold cryptocurrencies on behalf of clients, and the latter bringing digital currencies onto its payment network.

To remain competitive, it's likely that most major banks and credit card processors will be forced to provide similar offerings within the next couple years.

Additionally, companies are now purchasing and holding Bitcoin on their balance sheets in lieu of fiat currencies such as dollars and euros. Business intelligence firm MicroStrategy (MSTR) recently announced a $600 million convertible debt offering to continue buying Bitcoin – and within days upped that debt offering to $900 million, with the potential for another $150 million should additional investor interest exist.

The flashiest such move, however, was a Feb. 8 announcement by Tesla. The electric-vehicle company said it had bought $1.5 billion in Bitcoin, and Elon Musk said his firm was also considering allowing customers to purchase vehicles with the digital coins.

"Player 3 has entered the race," tweeted Barry Silbert, founder and former CEO of Grayscale Investments, which offers the Grayscale Bitcoin Trust (GBTC) Bitcoin fund. "Good luck, @ElonMusk."

Enter the Osprey Bitcoin Trust (OBTC)

Investors have myriad options for investing in Bitcoin and other cryptocurrencies. For instance, if the stock market is your comfort zone, you can buy several publicly traded companies for the potential upside of their various crypto-related initiatives.

Your options for investing in cryptocurrencies are limited if you're only comfortable investing through a traditional brokerage account, however. Bitcoin and other digital coins can only be directly accessed via cryptocurrency exchanges, and it's typically recommended that you have your own personal digital wallet for holding those digital coins.

You can, however, buy Bitcoin and a couple other digital currencies through funds, similar to how you might buy commodities such as gold and silver through exchange-traded funds (ETFs).

The Osprey Bitcoin Trust buys and holds Bitcoin on behalf of its investors, using Fidelity as a custodian. This fund has been around since 2019, but until this week, it had only been available privately to accredited investors.

Much like owning a gold fund, investors in OBTC can't redeem their shares for actual Bitcoin – but they still enjoy exposure to the price movements of the cryptocurrency.

Most importantly, OBTC charges just 0.49% in management fees, and other expenses (custody, legal, etc.) are expected to bring the total fee to no more than 0.79%. While that's much higher than your average index ETF, that's far smaller than its primary competitor, the Grayscale Bitcoin Trust, charges a 2.0% holding fee but has nonetheless amassed $34 billion in assets.

Designed to grab cost-conscious investors, OBTC might spur Grayscale to lower its fees. It's a trend we've seen time and time again across exchange-traded funds, as well as with stock brokerage firms that stampeded to zero fees in 2019.

"We're simply trying to give investors exposure to Bitcoin, so there's no active management other than converting new investment dollars into Bitcoin," says Greg King, CEO of Osprey Funds. "The price point reflects a more ETF-like structure rather than hedge fund fees. We think it's more appropriate for this kind of product."

The Potential Danger: A Bitcoin ETF

OBTC is not an exchange-traded fund. It's similar, but the difference is a doozy.

OBTC (and GBTC, for that matter) is a trust that trades "over the counter." And one of the biggest differences between OGBTC/GBTC and, say, a theoretical Bitcoin ETF that would work similarly to a commodity ETF, is that they can trade at a significant premium or discount to their net asset value.

Let's say that the net asset value of OBTC's Bitcoin holdings is $10 per share. Well, the fund itself could still trade at $12 per share or $8 per share, depending on how much demand there is for the fund itself. For instance, within the span of about a month, GBTC went from trading at a 40% premium to NAV to a mere 5% premium. People simply became less willing to pay as much for the assets GBTC held.

The SEC thus far has refused to green-light a Bitcoin ETF, though its time could be soon. Canada recently approved its first crypto ETF, and days later approved its second. They could act as something of a test case, and possibly pave the way to eventual SEC approval of U.S. products.

"Because of the change in administration, there's more interest in Bitcoin as an ETF," King says. "If things start to look more favorable at the SEC, we're very likely to see that space grow as well."

Approval of a Bitcoin ETF does threaten funds like GBTC and OBTC, however. If money rushes from those funds into a new Bitcoin ETF, the price of those over-the-counter funds could deflate – even if Bitcoin prices remain high.

"We would look at our options of converting to an ETF when the time comes and depending on the regulatory environment," King adds.

However, investors who wait for an ETF before jumping in could miss out on part of the current bull market in cryptocurrencies. Again, while prior bull markets in crypto were marked by retail investors, this new uptrend is clearly being driven by institutional interest. It also helps that it's a limited asset in a world beset by global money printing.

"Part of the attraction of Bitcoin is that it's ultimately a finite supply," King says. "Ultimately, all interest has to fit into 21 million BTC, so the price will have to accommodate."

Andrew Packer was long Bitcoin as of this writing.

Do you worry about cell phone mishaps? Before you shell out for insurance, see whether your credit card comes with coverage as a free benefit. Last year, Mastercard began offering cell phone protection for holders of its World and World Elite credit cards. Consumer credit cards from Wells Fargo come with phone insurance, and so do the Chase Ink Business Preferred Visa, Uber Visa and U.S. Bank Visa Platinum cards.

To get the insurance, you have to pay your monthly wireless bill with the credit card (check with the issuer to see whether all phones on a family plan are covered). The coverage limit per claim is often $600, although Mastercard World Elite cardholders get up to $800 a claim. Yearly coverage limits apply, too, typically ranging from about $1,000 to $1,800. And the number of claims may be capped at two or three annually. Deductibles run from about $25 to $100.

The insurance usually covers devices that are damaged or stolen (but not lost). The type of damage that qualifies varies. Mastercard’s pro­tection, for example, includes screen scratches that don’t affect your phone’s ability to make or take calls; some other plans exclude cosmetic damage. Other exclusions may include phones paired with a prepaid wireless plan, devices stolen from checked baggage during air travel and electronic problems not caused by physical damage, such as inability to charge the battery. If your phone is stolen, you may have to provide the benefit administrator a police report that was filed within 48 hours of the in­cident, and damage claims may require a repair estimate. And you’ll typically have to file your claim within a specified window after the damage or theft occurred—often 90 days.

If you buy insurance through your phone carrier, you may enjoy higher coverage limits of about $2,000 per claim and inclusion of lost phones in the plan, says Tina Chang, of WhistleOut, a phone-plan comparison site. But the cost may be about $10 to $20 per month in premiums.

Most lenders expect you to have a decent credit record to qualify for a loan or credit card. But if you’ve never had a credit card or taken out a loan, you don’t have much of a credit history.

It’s a conundrum that young people face as they begin their adult lives. And having no credit record (or a thin one) touches more than just your ability to borrow money. A landlord may check your credit report before offering you an apartment, and a wireless carrier may peek at your credit before offering you service or setting a price for a plan or device.

Fortunately, you can establish a credit history even without a track record. And if your credit report contains negative items, such as late payments or a bankruptcy, you can use some of the same strategies to rebuild credit.

Apply for a credit card. Using a credit card responsibly helps you get a foot in the door to good credit. To build a positive history, pay your bills by the due date and try to keep the balance to less than 20% to 30% of the card’s limit. The percentage of available credit that you use on your cards is known as your credit utilization ratio, and the lower it is, the better for your credit score. As you learn the ropes, make just a few basic purchases monthly—say, to buy groceries—to help ensure that you can afford to pay the bill in full and avoid carrying a balance from month to month, which incurs interest.

Becoming an authorized user on a parent’s credit card is a common way young people start out with credit. That’s the route Nate Reistetter, 19, took after he heard some coworkers his age at a summer job talking about building credit. A sophomore at the University of Wisconsin—Madison, he charges some course materials to his mother’s Amazon Prime Rewards Visa Signature credit card (16.24% to 24.24% annual percentage rate). “It works well because my Amazon purchases are regular and small,” says Reistetter. As long as the cardholder pays the bills on time and keeps the utilization ratio low, an authorized user should see a positive effect on his or her credit score.

Reistetter has also thought about applying for a student credit card. Our favorite one, Discover It Chrome for Students (0% for six months, then 14.99% to 23.99%), offers 2% cash back on up to $1,000 spent per quarter at gas stations and restaurants and 1% on other purchases. Plus, you get a $20 statement credit each academic year that your grade point average is at least 3.0.

Card issuers are usually more lenient in evaluating student-card applicants’ income and credit history than in evaluating the finances of applicants for standard cards. Bank of America—which issues another student card that we like, Bank of America Cash Rewards for Students Mastercard (0% for 15 months, then 15.99% to 25.99%)—looks for an independent ability to pay the bills based on income, such as from a summer or part-time job, in applicants ages 18 to 20.

If you or your parents have been customers for a while, your bank or credit union may give you a chance. You’ll have the best shot with smaller, local banks. Or open a store credit card. Retail credit cards often have less-strict eligibility requirements than standard cards from large issuers, but many store cards come with high interest rates and low limits.

Get an un-credit card. Another option is to open a secured credit card. Qualifying for a secured card is relatively easy because you make a deposit, often equal to the card’s limit; if you fail to pay the bill, the issuer can dip into the deposit. Some secured cards even offer rewards. The Discover It Secured card (24.99%), for example, offers the same cash-back structure as Discover’s Chrome for Students card. After you’ve had the card for eight months, Discover will perform monthly reviews to determine whether you’re managing credit well enough to convert to an unsecured account and receive your deposit back.

Some financial-technology companies are conjuring up cards that rely on alternative methods to evaluate creditworthiness. The Petal Visa card (14.99% to 25.99%) focuses on people new to credit and charges no fees. Plus, you get 1% cash back right away, 1.25% after six on-time payments and 1.5% after 12 on-time payments. If your credit history isn’t robust, you can link your bank account for Petal to review your cash flow. Depending on how healthy your credit and finances are, the credit limit runs up to $10,000—much higher than you can typically get with a secured card.

Consider a loan. Some community banks and credit unions offer credit-builder loans, which may be preferable if you’d rather avoid a credit card, says Beverly Harzog, credit expert for U.S. News & World Report. The lender puts the amount you borrow (typically $1,000 or less) into a deposit account, and you make payments of principal and interest on a predetermined schedule. After you pay off the loan, you get the money back, possibly with interest. Check that the lender reports your loan payments to the three major credit bureaus: Equifax, Experian and TransUnion.

If you have a student loan, making on-time payments can help beef up your credit history, too. Your mix of credit makes up 10% of your FICO credit score, so having both a loan and a credit card on your report may give your score a bit of a bump.

Leverage new alternatives. Experian Boost is a service that potentially increases your credit score by considering on-time payments of bills you owe to utility providers and phone or cable companies, which typically don’t report customer payments to the credit bureaus. At www.experian.com/boost, link the bank account you use to pay bills. Experian will scan your account for positive payment information and include what it finds in your Experian credit file. Equifax plans to soon introduce a service through which lenders may consider payment information for utility, phone and cable bills, with the applicant’s permission. (See Kiplinger Q&A: Hill Harper)

FICO has been testing an UltraFICO score with a handful of lenders and expects the score to become more widely available this fall. UltraFICO incorporates activity from your bank account, including how consistently you have cash available and whether you’ve overdrawn your account. If you can’t qualify for credit with a traditional score, a lender may ask whether you’d like to link up to 20 active personal checking or savings accounts for evaluation with UltraFICO.

Reap Some Rewards

The Apple Card (12.99% to 23.99%) is an attractive choice for newbies. Normally, you’d have trouble getting a rewards card with a score below about 670, says Ted Rossman of CreditCards.com. But, he says, “I’m hearing that a lot of people with credit scores in the 550 to 650 range are getting approved.” The card offers cash-back rewards of 3% on Apple purchases, 2% on other purchases you make with Apple Pay, and 1% at stores or websites that don’t accept Apple Pay.

Fees aren’t just annoying—they’re expensive. A few monthly surcharges can add up to hundreds of dollars a year. That’s money you could use to save for retirement, give to charity, or enjoy a really nice dinner or two.

The good news is that most of these fees are avoidable, especially if you’re willing to make a couple of phone calls and threaten to take your business elsewhere. Take a look.

The simplest way to bypass annual fees—which often run between $50 and $100 but can go much higher—is to choose cards that don’t charge them. Plenty of great rewards cards, which offer cash back, miles or points on your purchases, come with no annual fee; Citi Double Cash Mastercard and PenFed Pathfinder Rewards American Express are among our favorites.

Cards that carry annual fees typically offer heightened rewards, and the fee may be worth paying if you gain enough in rewards and benefits to make up for it. But if you’re not getting enough bang for your buck, the issuer may cut you a break. A recent CreditCards.com survey showed that 70% of those who asked had the annual fee lowered or waived. Some cards waive the annual fee the first year, so you can try out the card free.

You may be charged up to $27 the first time you make a late payment and up to $38 for another overdue bill within the next six billing cycles. Plus, the issuer may increase your annual percentage rate.

Consider signing up for automatic payments to ensure you pay the bill on time. If you slip up and pay late, it’s well worth asking the issuer to waive the fee. CreditCards.com says more than 80% of those who made the request had the fee waived. Discover charges no late-payment fee for the first offense and never increases your APR for late payments. The Citi Simplicity Mastercard and PenFed Promise Visa impose no late fee or penalty APR.

The number of major credit cards that charge currency-conversion fees when you use them abroad has been shrinking over the past few years. Still, many cards impose a fee of about 3% of the transaction. Some issuers, including Capital One and Discover, charge no foreign-transaction fees on any of their cards. Other issuers skip the fee on certain cards—often travel cards with annual fees.

If you move your balance from one card to another, the new card typically charges a fee—an average 3.46%, according to a CompareCards.com study—and such fees have been creeping up lately, says Matt Schulz, chief industry analyst for CompareCards.

Look for cards that charge no balance-transfer fee and offer an introductory 0% APR. For example, the Amex EveryDay card levies no fee if you request the transfer within 60 days of opening an account, and it charges no interest for the first 15 months (after that it ranges from 14.99% to 25.99%). Plus, you’ll get two points per dollar spent at supermarkets and one point on everything else, as well as a 20% bonus on points earned if you use the card at least 20 times per billing period. Points are redeemable for gift cards, travel bookings and statement credits, among other options.

Checking accounts that pay interest charge an average of $14.35 a month, and non-interest-bearing accounts charge $5.57, according to Bankrate.com. Luckily, these fees are among the easiest to avoid. Most accounts waive the fee if you arrange for a direct deposit or maintain a minimum balance.

Among accounts at big national banks, TD Bank’s Convenience Checking requires a minimum daily balance of only $100 to waive the $15 monthly fee. Or find a free account with no strings attached; internet banks and credit unions are often your best bets.

If you withdraw cash from an ATM outside your bank’s network, both your bank and the ATM’s operator may hit you with fees—charging a combined average of $4.68, according to Bankrate. Choose a bank with a strong ATM network where you live and commonly travel. Or pick an account that charges no out-of-network ATM fees and reimburses you for the fees ATM owners charge.

Premium checking accounts from larger banks often provide such refunds (you’ll typically have to keep a large balance to avoid a monthly fee), and free accounts from some other institutions—especially internet banks—do, too. The free Ally Bank Interest Checking Account reimburses $10 monthly in out-of-network ATM fees.

Overdrawing your checking account could result in a fee as high as $35 to $40 if you opt to let the bank cover the overdraft for you. Instead, link your checking account to a backup savings account from which the bank can automatically transfer funds; you may pay a fee, but it’ll likely be about $5 to $15 instead.

Among big banks, Chase and U.S. Bank charge no fees for overdraft transfers from a savings account with the bank. Alternatively, you can turn down all forms of overdraft protection, and your debit card will be rejected if you have insufficient funds to cover the charge (but you could still incur fees for electronic transfers or checks that overdraw your account).

Some banks charge $3 or so for a standard ACH transfer to an account with another institution, which may take a few days to clear. For a wire transfer—which often goes through on the same day—your bank may charge about $25 to $35 to send money domestically and as much as $45 or more to wire money internationally. (Many banks levy fees for incoming wires, too—typically less than $20.)

To quickly send money to another person in the U.S., check out a peer-to-peer payment service, such as Zelle. It offers instant transfers directly to other bank accounts (at least one member of the transaction must have an account with a participating bank), and most banks don’t charge fees for the service. TransferWise is an inexpensive choice for international transactions of a couple of thousand dollars or less, but the transfer may take a few days. Recently, sending $500 to someone in Great Britain incurred a fee of about $5.

Some prepaid cards stick customers with a multitude of fees, such as monthly fees of up to about $10, reload fees of about $5, and $2.50 or so each time you withdraw cash at a U.S. ATM. Use a card with minimal fees, such as Bluebird by American Express and Walmart. It charges no monthly fee, most methods of reloading are free, and you can avoid an ATM surcharge by visiting machines in the MoneyPass network.

When you start a new line of service with a wireless phone carrier or upgrade your phone, you may pay an activation or upgrade fee, ranging from about $25 up to $45. Ask the carrier to waive the fee. Or watch for promotions—carriers sometimes drop the activation fee for a limited time, says Tina Chang of WhistleOut.com, a phone-plan comparison website.

Sprint, for example, recently offered a promotion for a year of free unlimited data, talking and texting and waived activation fees for those who switched to the carrier and brought their own eligible, unlocked phone to the plan. With some companies, you may avoid the upgrade fee by purchasing an unlocked phone from outside the carrier (say, from the manufacturer or on Amazon.com or eBay). Verizon Wireless charges no upgrade fee if you buy an unlocked phone and put your previous phone’s SIM card in it yourself.

Contracts with wireless phone carriers have gone the way of the dodo, but cable and satellite TV companies still offer them. If you break a contract, you’ll likely face an early-termination fee, which may run about $15 to $20 for each month left on your contract. If you’re moving to an area where the provider doesn’t offer service, it may not charge the fee.

Or if you’re switching to a competing company, see whether it will reimburse you. Spectrum and Verizon Fios will cover up to $500 of the previous provider’s early-termination fee for new customers who sign up for eligible plans.

Cable companies may tack on fees of $50 to $100 or even more to have a tech set up your home for cable, internet or landline service or to fix a problem with your existing service. If your home is already wired and installation is limited to connecting basic equipment, see whether you can do it yourself; some providers offer self-installation kits free or for a reduced fee.

Or ask the provider to waive the installation fee—you’ll have more leverage if you make the request before you start service than if you wait until the fee hits your bill, says Peter Zimbicki, head of operations for BillFixers, a service that negotiates lower bills for consumers. It’s worth asking the company to remove service-call fees, too, especially if the problem is the provider’s fault.

Renting a modem from your internet provider may cost you about $10 to $15 a month. Instead, buy your own—you may pay $100 to $200, but you should recoup the cost within a year or two.

You may encounter this fee—often $20 or more per year—when you open a new IRA or have an IRA balance below $10,000, says Greg McBride, chief financial analyst at Bankrate.com. But there are plenty of brokerage firms and mutual fund companies that do not charge a fee, and others will waive it if you sign up for e-mail delivery of account statements, maintain a certain minimum balance or make a specified number of trades per year.

Fidelity, Charles Schwab and TD Ameritrade don’t charge a maintenance fee for their IRAs. Vanguard charges a $20 annual fee for accounts with less than $10,000 but waives the fee if you sign up for e-delivery service for statements, notices and confirmations.

Insurers usually give you the option of paying your bill monthly or in full, but the installment payments come with an extra fee. You can usually cut your premiums by 5% to 10% if you pay your bill for the full auto insurance term (usually six months) in a lump sum, says Bailey Peterson, research analyst at ValuePenguin, a consumer research website.

If you have your own auto insurance when you rent a car, you may not need to sign up for supplemental liability insurance, which can cost $7 to $15 per day for liability coverage up to $1 million, according to Value­Penguin. Your car insurance will cover you up to the liability limits of your policy if you rent a car in the U.S. or Canada (but usually not in other countries).

If you have comprehensive and collision coverage on your own insurance policy, it may be redundant to get the collision damage waiver coverage, which covers physical damage to the rental car and tends to cost $10 to $20 per day. However, that extra coverage may be worthwhile if you have high deductibles or have dropped collision and comprehensive coverage on your own car insurance policy. Plus, you may be charged an administrative or loss-of-use fee if you wreck a car after declining the CDW.

You may also have CDW coverage from your credit card company, which will pay your car insurance deductible if you reserve and pay for the rental car with that credit card and decline CDW coverage from the rental-car company. Find out about any exclusions; credit cards usually don’t provide liability coverage, and some don’t cover pickup trucks, truck-based SUVs or certain sports cars.

It's a pretty good bet that you have leaks in your budget—car insurance that costs too much, bank account fees, home-energy wasters or mutual funds with high expense ratios. Each of those leaks in isolation won't damage your finances, but all of the drips can quickly add up to big bucks—maybe even thousands of dollars a year—going down the drain. We identify typical leaks and show you how to fix them so you can keep more money in your pocket.

SEE ALSO: Time-Tested Tactics to Build Your Wealth

You can find store discount codes, often worth up to 20%, at sites such as Retailmenot.com and Promocodes.com. But if you're not in the mood to conduct the search yourself, Honey (www.joinhoney.com), a browser extension available for Chrome, Safari and Firefox, searches for coupons at thousands of sites and applies the discounts at checkout. Honey also searches Amazon.com for the lowest price.

• But don't just assume Amazon has the best deal. LendEDU, a comparison marketplace for loans and other financial products, compared a shopping cart of 50 identical items from Amazon and Walmart in five categories: home goods, kitchen/appliances, tech, food and beverage, and miscellaneous items. Walmart bested Amazon in every category except food and beverage.
• You can score deals at the supermarket without clipping coupons. If you sign up for a loyalty card, you can save up to 30% on sale items, and you may be able to add virtual coupons to your card if you register it on the grocer's website.

If you're paying pesky shipping fees, maybe you're not shopping right. The coupon sites mentioned in the last slide may turn up free-shipping codes.

Or search Bradsdeals.com for more than 50 stores—including Coach, Dell, DKNY, Microsoft, Neiman Marcus, Nord­strom, North Face, Ray Ban and Zappos—that always offer free shipping with no minimum purchase. But compare what you buy at sites with shipping fees to make sure you're getting the best overall deal. Another option: Best Buy, Nordstrom, Target and other large retailers offer free shipping to nearby stores, so you can take advantage of the online price. Or contact customer service through the chat box to ask about free-shipping codes.

Don't pay an extra 20% on an extended warranty—your credit card may have your back.

American Express offers an extended warranty on all of its cards, and most cards from Visa and MasterCard also include this perk (Discover recently discontinued it). To see what your card issuer offers, go to WalletHub.com and search for “extended warranty.” The extra warranty typically lasts up to a year beyond the manufacturer's warranty and has coverage up to $10,000.

Many retailers have annual sales for particular items, typically when they're clearing out inventory to make room for the coming year's new lines. You can score big savings by marking your calendar for the best months to buy the following gear.

• January: linens and bedding, exercise equipment, winter clothing
• February: TVs, tax-filing software, cookware and small kitchen appliances
• March: skis and snowboards, high-end fashion, luggage
• April: tires, cruise vacations, hotel discounts on tax day
• May: mattresses, smart-home hubs, office furniture
• June: gardening tools, gym memberships, camping gear
• July: swimwear, air conditioners
• August: laptops, school supplies, shoes
• September: older iPhone models, grills, summer clothing
• October: outgoing models of sedans and SUVs, Halloween costumes, patio furniture
• November: gaming systems, tablets, large appliances
• December: jewelry, toys, wedding dresses

You might be surprised to learn the extent to which high mutual fund expenses can erode your return. Consider Primecap Odyssey Growth (POGRX), a member of the Kiplinger 25 (the list of our favorite no-load funds). The fund invests in growth-oriented, large-company stocks and charges expenses of just 0.66% of assets. The long-term annualized return for large-cap stocks is 10%. Assuming a more conservative 8%, a $10,000 investment in Odyssey Growth would be worth nearly $41,000 after 20 years.

Under the same scenario, a $10,000 investment in the Monetta Fund, a large-company growth fund with a 1.46% expense ratio, would grow to just $35,000 over two decades. You can save even more with index mutual funds and exchange-traded funds. Vanguard Russell 1000 Growth ETF (VONG), which tracks the performance of 1,000 growth-oriented, large-company stocks, charges 0.12%. Under the same assumptions, the fund would net $45,500.

SEE ALSO: The 25 Best No-Load Mutual Funds

If you're shelling out more than $5 per trade to buy or sell stocks, you're paying too much. Brokerage firms Ally, Charles Schwab and Fidelity each charge $4.95 per stock trade, beating E*Trade, TD Ameritrade and Vanguard (all at about $7 per trade). Merrill Edge levies $6.95 per trade but waives the fee entirely on up to 30 trades a month for customers who keep at least $50,000 with the firm (including its parent, Bank of America).

• Investors can also trade exchange-traded funds or buy mutual funds without paying a penny in fees. Schwab offers an industry-leading 254 commission-free ETFs. Vanguard brokerage customers may buy or sell more than 70 of its ETFs without charge. Most brokers also offer thousands of no-transaction-fee mutual funds.

SEE ALSO: Best Online Brokers

• Exchange-traded funds that track a market benchmark tend to be more tax-efficient than actively managed mutual funds that invest in the same arena because the latter may distribute capital gains on a regular basis. In a taxable account, consider swapping a poor-performing mutual fund that invests in large-company stocks for an ETF such as iShares Core S&P 500 (symbol IVV). Its expense ratio is a wafer-thin 0.04%, and it distributes dividend income only from underlying stock holdings.

Municipal bond funds can be a good alternative to taxable bond funds because muni interest isn't taxed by Uncle Sam; it may also be tax-free at the state level to the extent the fund holds bonds issued by the state in which you live. Fidelity Intermediate Municipal Income (FLTMX) yields about 2%, equal to a 3.2% yield for investors in the top 37% tax bracket, or 3.4% for those also subject to the net investment income tax.

SEE ALSO: What Investors Need to Know About the New Tax Law

Our standard advice to mutual fund investors is to avoid funds that come with sales charges, known as loads, which can range as high as 5.75% each time you buy shares. But if you invest through a discount brokerage, you may be able to purchase a stellar load fund without paying a sales charge or transaction fee. Loomis Sayles Core Plus Bond (NEFRX), which has outperformed its benchmark in seven of the past nine calendar years, usually levies a 4.25% charge for Class A shares.

But you can purchase them load-free at brokerages such as E*Trade, Fidelity and Schwab. Much of the fund's assets are pegged to the Bloomberg Barclays Aggregate Bond index, but the managers can stray from the index if they see fit. Hotchkis & Wiley Value Opportunities (HWAAX) returns have bested the average large-company value fund in seven of the past 10 years, including so far in 2018. The fund invests in promising out-of-favor companies. A shares are available without their 5.25% load at Fidelity, Schwab and Vanguard.

SEE ALSO: The 25 Best No-Load Mutual Funds

Investment advice from a human might cost you 1% of assets. Robo advisers typically charge about 0.25%. These virtual advisers use computer programs to match you with a diversified portfolio of low-fee ETFs tailored to your time horizon and risk tolerance.

You can find robo advisers at a slew of financial firms; Betterment, Fidelity, Merrill Lynch, Morgan Stanley, Schwab and Vanguard each offer their own service. Robos' performance depends on the mix of assets in their portfolios. Schwab Intelligent Portfolios (free) beat its peers over the past two years, thanks to its stakes in foreign stocks, high-yield debt and foreign bonds, says the Robo Report newsletter.

SEE ALSO: Advice from Financial Pros on Our Wealth Creation Channel

Our pick for the best family phone plan, Sprint's Unlimited Freedom Plan, costs $100 a month through March 2019 for unlimited calling, texting and data on up to five lines (you must make automatic payments to qualify for that price). After that, it costs $60 a month for the first line, $40 for the second line and $30 for each additional line. The plan includes free access to Hulu (worth $8 a month).

Cell-phone users with low data needs can often cut costs through prepaid carriers, such as Cricket Wireless (a subsidiary of AT&T) and MetroPCS (a subsidiary of T-Mobile), which charge about $40 per month for 5 gigabytes of data with unlimited talk and text. The average monthly data use is 2.4GB, according to Nielsen.

• If you need more data, consider an unlimited data plan through one of the big four carriers—and you may get a bonus perk. T-Mobile's unlimited plan comes with a free standard Netflix subscription (worth $11 per month) for accounts with two or more phone lines (cost: $120 per month for two lines). AT&T's unlimited plans (starting at $60 a month for one line) come with free HBO (worth $15 per month) and, if you opt for the Unlimited Plus plan (starting at $90 for one line), a discount on a DirecTV subscription.

SEE ALSO: Best Phone Plans for Every Type of User

When you're due for a phone upgrade, save $100 or more by skipping new, pricier models and going with their cheaper, almost-as-good predecessors. The iPhone 8 retails for $700, but a new iPhone 7 starts at $550. The Samsung Galaxy S8 sells for $725, but the Galaxy S7 costs $450.

SEE ALSO: Best Phone Plans for Every Type of User

The insurer that had the best rate when you bought your coverage may not be the most competitive after you add a teenage driver, get married, move, buy a new car or improve your credit score. It's a good idea to reshop your auto insurance every year or so even if nothing has changed. In a study by the Texas Insurance Department, people saved an average of $125 per year just by calling other insurers to compare rates. Weigh any premium savings against long-term customer discounts you may be earning. Also, you'll usually get a big discount if you keep your auto and home coverage with the same company.

• You can compare quotes from several insurers through an independent agent (to find one, go to www.trustedchoice.com), at Insurance.com or InsuranceQuotes.com, or by visiting a few insurers' websites. Tell your company about a better quote before switching; it may reduce your rate to keep you as a customer.
• Ask your insurer for a list of discounts to see if you qualify for breaks you're not receiving. If you have safe driving habits and low mileage, you may save up to 50% by signing up for a data-tracking program, such as Progressive's Snapshot, State Farm's Drive Safe & Save or Allstate's Drivewise.

If you have an old car and you're still paying for collision insurance, you may be paying more in premiums than you would collect from your insurer if you totaled your car. Check out your car's value at Edmunds.com or KBB.com, and drop collision coverage if the value of your car minus your deductible is less than what you pay for collision coverage. Or boost your deductible. Raising it from, say, $250 to $1,000 could save you 15% or 20% in premiums.

SEE ALSO: 6 Steps to Cut Your Car-Insurance Rates

• Raising your deductible from $250 to $500 or $1,000 can cut your premiums by 15% or more. It also makes you less likely to file small claims that could boost your premiums or lead to cancellation of your policy. Don't forget to ask your insurer about discounts for home improvements that reduce claim risks, such as installing storm shutters or impact-resistant glass. You could also snag a discount of up to 5% for a home generator.

SEE ALSO: Does Insurance Cover That?

If your family is in relatively good health, you can save money on premiums—and benefit from an HSA's triple tax benefit—by signing up for a high-deductible health insurance policy. To be eligible for an HSA in 2018, your deductible must be at least $1,350 for self-only coverage or $2,700 for family coverage. Your contributions are tax-deductible or pretax (and you may get an employer match), and the money can be used tax-free for medical expenses in any year.

• If you don't have an HSA but your employer offers a flexible spending account (FSA), you can contribute up to $2,650 in 2018, and the money escapes federal income and Social Security taxes. FSA funds can be used tax-free for eligible medical expenses. You must use the cash in your account by December 31 or March 15, depending on your employer, or you'll lose it. (Some employers let you roll over $500 to the next year.)

SEE ALSO: 10 Things You Need to Know About HSAs

• You have from October 15 to December 7 each year to reshop your Medicare Part D or Medicare Advantage plans. Go to www.medicare.gov/find-a-plan and type in your drugs and dosages to see how much you'd pay in premiums and out-of-pocket costs for Part D plans. Use the same tool to shop for Medicare Advantage plans.
• If you're paying the Medicare surcharge but your income has decreased because of retirement, divorce or the death of a spouse, you can get your surcharge reduced. (You pay higher premiums for Part B and Part D when your adjusted gross income plus tax-exempt interest is more than $85,000 if you're single or $170,000 if married filing jointly.) See www.ssa.gov/medicare for details.

SEE ALSO: 7 Ways to Maximize Medicare Benefits

A lot of insurance is simply overkill—it duplicates coverage you already have or offers too little payback for the premium.

• Rental car insurance. If you have car insurance with liability limits of $500,000 to $1 million, you don't need to pay $10 to $15 per day for $1 million of rental car liability insurance.
• Credit and mortgage life insurance. You've probably found pitches for credit life coverage tucked in with your car loan or credit card bill. The coverage looks cheap, but the benefits are minimal: The insurance just pays off the balance on your loan. Likewise, with mortgage life insurance, the value goes down every year as your mortgage balance decreases. Plus, your heirs can't use the death benefit for anything else.
• Dental insurance. Most policies pay for cleanings and checkups every six months and annual x-rays. But annual premiums commonly run $180 to $600 for policies that generally cap coverage at $2,000 or less per year for most other expenses. Many policies also make you wait six months before covering fillings or at least 12 months before covering a root canal. If your employer offers a subsidized plan, it could be a good deal. But it may be more cost-effective to add pretax money to your flexible spending account to cover dental expenses.

SEE ALSO: Retirement Planning Mistakes You'll Regret Forever

Not getting your money's worth from a card that charges an annual fee? You have plenty of great choices among no-fee cards. The Citi Double Cash card rewards you with 1% cash back when you make a purchase and another 1% when you pay the bill, for a total of 2% on all spending. Discover It offers 5% cash back on up to $1,500 spent in categories that change quarterly; in 2018, the 5% categories include gas stations, grocery stores, restaurants and Amazon.com.

SEE ALSO: Everyday Actions That Could Affect Your Credit Score

Don't pay for benefits you can get free. Your card may offer purchase protection, which provides a refund, replacement or repair if an item you bought with the card is damaged or stolen within a few months of purchase. Some cards include travel insurance, such as for trip cancellations or lost or delayed baggage. Certain types of identity-theft monitoring, such as scanning internet black markets for your Social Security number, are available to MasterCard and Discover cardholders.

SEE ALSO: Best Rewards Credit Cards

The Bank of Internet USA Essential Checking account requires no minimum balance or monthly fee and provides unlimited reimbursement of out-of-network ATM fees. Plus, it's free to have money automatically transferred from a savings account if you overdraw your checking account. The free Ally Bank Interest Checking Account yields up to 0.6%, depending on the balance. Ally reimburses up to $10 monthly in out-of-network ATM fees, and overdraft transfers from savings are free (but you'll pay a $25 fee if you choose to have Ally cover an overdraft).

SEE ALSO: Best Credit Unions Anyone Can Join

If you're carrying a balance on a credit card, consider transferring it to a card such as the BankAmericard Credit Card. It charges no interest for 15 months and levies no balance-transfer fee (you must make the transfer within 60 days of opening the account to capture those terms).

If you can't pay off the balance before the 0% window closes, you may be better off moving the debt to a lower-rate loan. The average rate on a $30,000 home-equity line of credit was recently 5.66%, according to Bankrate.com. Or consider a personal loan. LightStream, an online lending division of SunTrust Bank, offers rates as low as 5.49% on a debt-consolidation loan.

SEE ALSO: Kiplinger's Interest Rate Forecast

The following cards don't charge a 3% foreign-transaction fee for each purchase.

CREDIT CARDS

• Bank of America Travel Rewards Visa (no annual fee) makes it simple to earn and redeem points.
• Chase Sapphire Preferred Visa ($95 annual fee, waived the first year) lets users transfer points to several partner airline and hotel programs, or use points to book travel through the Chase portal.
• PenFed Pathfinder Rewards American Express (no annual fee) dangles some attractive features for travelers, plus you can earn up to four points per dollar spent on travel purchases (for more details, see kiplinger.com/links/penfed).
• Charles Schwab Bank High Yield Investor Checking refunds all ATM fees to withdraw cash worldwide and charges no foreign-transaction fees to use the debit card. The account is free to open and maintain.
• Capital One 360 Checking does not charge foreign-transaction fees or out-of-network ATM fees, but it won't refund fees that the ATM owner charges. The account is free to open and maintain.

DEBIT CARDS

When you withdraw cash abroad, some debit cards waive the 3% foreign-transaction fee as well as out-of-network ATM fees (commonly $2.50, according to Bankrate.com).

SEE ALSO: Secrets to Save on Travel

The first programmable thermostats promised energy savings, but homeowners didn't fully tap their potential. Smart thermostats make it easier: They learn from your habits and automatically adjust temperature settings for the highest efficiency. The Nest 3rd Generation (works with Google Home and Amazon Echo, $249), ecobee4 (with built-in Alexa Voice Service, $249) and the ecobee3 lite (works with Amazon Echo, $169) have been certified by Energy Star. Independent studies show that the Nest thermostat will save an average of 10% to 12% on heating bills and 15% on cooling bills, or an average of $130 to $145 a year.

SEE ALSO: Put Smart-Home Technologies to Work for You

U.S. households have, on average, 65 electronics and appliances plugged in, according to the Natural Resources Defense Council. Most of them consume electricity around the clock, even when they're turned off. And that's costing households $165 a year, on average. (You can see how much you're paying with the Energy Vampire calculator at www.duke-energy.com.)

The obvious way to pull the plug on these suckers is to do just that—pull the plug. An easier approach: Use a smart power strip, which cuts power to electronics, such as computers, printers and home audio/video components, that slip into standby mode. The seven-outlet Smart Strip Power Strip and automatic switching surge protector ($25.75 at www.smarthomeusa.com; $33.95 for a 10-outlet strip) automatically turns outlets on or off when it detects whether an electronic device plugged into it is on, off or in standby mode.

SEE ALSO: 6 Home Projects That Save Energy and Money

If you can rattle a door or a window in its frame, or you can see light around it, your home is letting in hot air in the summer and drafts in the winter. To save 5% to 20% on your energy bills, weather-strip around doors and between the sashes of double-hung windows. Caulk other cracks and gaps. You'll save another 5% to 15% on your energy bills if you have your heating and cooling equipment tuned up annually (about $70 to $100 per unit) and change the air filter at least every three months.

SEE ALSO: 10 Projects to Help You Live in Your Home Forever

About one-third of Americans have an old, inefficient refrigerator in their basement or garage. To see what you can save by retiring yours, use the "Flip Your Fridge" calculator at EnergyStar.gov. For example, if you got rid of a side-by-side model built in the early 2000s, you could save an average of $90 to $150 annually.

SEE ALSO: Unlock 11 Secrets of Home Improvement Shopping at Lowe’s

When it's time to replace appliances, get an Energy Star–certified model. Your clothes washer and dryer gulp the most energy in your home. By replacing them with Energy Star models, you would use only about half as much energy and water, and the typical household could save an average of $113 annually compared with standard models.

SEE ALSO: 12 Secrets to Shopping at Home Depot

Homeowners could save about $1,000 over 10 years by replacing 20 incandescent or halogen lightbulbs with LED bulbs, according to a 2017 price survey and cost analysis by the Consumer Federation of America. Most stores now sell 60-watt LEDs for less than $5 per bulb.

SEE ALSO: 5 Best (and 2 Worst) Things About Shopping at Lowe’s

• The standard real estate commission is 6%, but in 2017, the average was 5.1% and falling, according to Real Trends, a real estate consulting company.

A shortage of housing inventory and pressure from discount and flat-fee brokerages are behind the trend. At Redfin, now available in more than 80 cities, sellers pay the usual 3% commission to the buyer's agent but just 1.5%—or 1% in some cities, including Washington, D.C.—to their agent. At a rate of 4.5%, you'd save $6,000 on a $400,000 home.

SEE ALSO: How Smart a Home Seller Are You?

Let's cut to the chase when it comes to picking stocks for a retirement portfolio. There's nothing wrong with sorting through individual names for desirable attributes such as reliable dividends, low volatility and secure business models. But it's quicker, easier and perhaps wiser for retirees to first narrow down the field. Taking the lead of the greatest value investor of all time is a good way to start.

Under Warren Buffett, shares in Berkshire Hathaway (symbol: BRK.A, BRK.B ) have delivered the kind of outperformance that would put a longtime shareholder on easy street. From 1965, when Buffett took control of the company, through the end of 2016, Berkshire stock has returned 20.8% a year, on average. Standard & Poor's 500-stock index, by comparison, had an average annual return of 9.7%. It’s no wonder Berkshire ranks as one of the greatest stocks of all time.

Berkshire is more than just its portfolio of stocks, of course. It owns scores of subsidiaries as well. But Buffett's investing prowess can’t be denied. If you're looking for great stocks to own in retirement, piggyback on some of Buffett's best ideas. After all, his preferred holding period is "forever." Here are eight of the best Buffett stocks for retirement.

(Shares prices and other data are as of Sept. 25, 2017. Berkshire holdings are based on regulatory filings and CNBC’s Berkshire Hathaway Portfolio Tracker. Stocks are listed in alphabetical order.)

• Symbol: AAPL
• Share price: $150.55
• Dividend yield: 1.6%
• Berkshire’s stake: 130.2 million shares

Apple has been one of the most visible growth stocks over the past decade, but it's increasingly becoming attractive as a stable value stock for retirement portfolios. Growth has slowed, to be sure, and yet Apple is set up to continue to generate a firehose of cash and dividends for a long time to come. The company currently has more than $261 billion in cash and securities on hand. David Kass, a professor at the University of Maryland's Robert H. Smith School of Business who studies Buffett and is a Berkshire shareholder, notes that customer devotion to Apple products and services almost serve as an annuity. "Apple may be viewed as a 'subscription model' with a loyal customer base very likely to purchase future products and services," Kass says.

• Symbol: AXP
• Share price: $88.21
• Dividend yield: 1.4%
• Berkshire’s stake: 151.6 million shares

Buffett likes credit-card companies. Berkshire currently owns nearly $1.1 billion worth of Visa (V) shares, $684 million worth of Mastercard (MA) and $516 million worth of Synchrony Financial (SYF), a major issuer of charge cards for retailers. But as much as Buffett likes these credit-card companies, he loves American Express. Buffett took his first stake in AmEx in the 1960s, and it’s still paying off a half-century later. Today, Berkshire owns 17% of the company worth about $13.4 billion. There’s a lot to love about AmEx: Its management is strong, it’s a dominant brand in the industry, and it generates copious amounts of free cash flow – the money left over after essential capital expenditures are made that can be used to finance dividends and stock buybacks. The current yield isn’t eye-catching, but it is safe and growing. And the stock is only slightly more volatile than the broader market. Those are attributes that will help retirees sleep better at night.

• Symbol: BAC
• Share price: $24.76
• Dividend yield: 1.9%
• Berkshire’s stake: 700 million shares

Buffett famously loves a good bargain, and that’s exactly what he got in 2011 when he swooped in to shore up the finances of Bank of America. In exchange for investing $5 billion in the bank six years ago, Berkshire received preferred stock yielding 6% and warrants giving Berkshire the right to purchase BofA common stock at a steep discount. Buffett recently exercised those warrants, a move that netted Berkshire a cool $12 billion in profits. The current stake in BofA is now valued at $17.3 billion, making the bank one of Berkshire's single biggest stock investments. Good news for retirement investors: BofA’s dividend yield is growing once again after plunging during last decade’s financial crisis. The quarterly dividend fell to just a penny a share in 2009 – and stayed there until mid-2014, when it was bumped up to a nickel. In July, BofA raised its quarterly dividend 60% to 12 cents a share. "This is a very well run bank that should benefit as interest rates rise in the near future," says Kass.

• Symbol: BRK.B
• Share price: $182.52
• Dividend yield: 0%
• Berkshire’s stake: N/A

We're not trying to be cute here, but Berkshire Hathaway is Warren Buffett's greatest investment and it promises to remain one for a long time. "I would recommend Berkshire Hathaway as the best retirement stock of all," Kass says. "Its stock represents ownership of over 90 companies across numerous industries along with a diversified portfolio of stocks." True, Buffett and partner Charlie Munger are getting up there in age –87 and 93, respectively – but the company boasts what Kass calls a superior management team. No successor has been named publicly, but Todd Combs and Ted Weschler are Buffett’s chief stock-picking lieutenants. Each already manages more than $10 billion worth of Berkshire’s investments. Either Combs or Weschler (or possibly both) are thought to be behind the lucrative move into Apple stock.

• Symbol: KO
• Share price: $45.69
• Dividend yield: 3.2%
• Berkshire’s stake: 400 million shares

The first thing you need to know about Coca-Cola is that it’s an income investor’s dream. The company has paid a quarterly dividend since 1920, and that dividend has increased annually for the past 54 years. The bear case on Coke is that the market for carbonated beverages in the U.S. has been shrinking for more than a decade and shows few signs of coming back. But Coke has responded by branching out into tea, bottled water, fruit juice and energy drinks. Brian Bollinger of Simply Safe Dividends, a website specializing in dividend investing, attributes Coke's ongoing business success to globally recognized brands, a massive customer base and worldwide distribution channels. Buffett, an unabashed fan of Cherry Coke, started investing in Coca-Cola soon after the stock market crash of 1987. In his 1988 letter to Berkshire shareholders, Buffett said he expected to hold on to the stock “for a long time.” Three decades later he’s proven true to his word.

• Symbol: IBM
• Share price: $145.87
• Dividend yield: 4.2%
• Berkshire’s stake: 54.1 million shares

IBM, the granddaddy of tech stocks, is trying to change with the times in a bid to stay relevant in today’s technology marketplace. Whether or not it will be successful remains to be seen, but a track record that dates back a century offers hope. IBM is following the lead of the likes of Google (GOOGL), Microsoft (MSFT) and Amazon (AMZN) into cloud-based computing services. Security is another growth driver, as are social and mobile services. IBM is also investing heavily in the cloud-based analytical capabilities of its Watson supercomputer. Transparency Market Research expects the global cognitive computing market to grow to $1 trillion by 2025, up from $30 billion today. In fairness, it’s important to point out that Buffett has lost some of his enthusiasm for IBM. Berkshire started buying the stock in 2011, and by the end of 2016 owned 81.2 million shares. But Buffett sold off about a third of the stake in early 2017. Still, the below-average volatility of the stock and the above-average dividend yield make IBM well-suited for retirees’ portfolios.

• Symbol: KHC
• Share price: $78.42
• Dividend yield: 3.1%
• Berkshire’s stake: 325.6 million shares

Buffett was one of the driving forces behind the 2015 merger of packaged-food giant Kraft and ketchup purveyor Heinz. It seems he couldn't be happier with the result. After all, it is now Berkshire's largest stock investment with a current market value of $25.6 billion. Berkshire owns nearly 27% of Kraft Heinz, and private investment firm 3G Capital owns another 25%. Berkshire and 3G Capital originally teamed up in 2013 to purchase H. J. Heinz. "Warren Buffett considers 3G Capital to be the best operating managers in the world," says Kass. "They are likely in the future to partner with Berkshire in the acquisition of other food companies." That's a powerhouse stamp of approval. And let's not forget that the packaged-food sector tends to hold up better when the economy turns south. That’s music to the ears of retirees who can’t afford to take a big hit to their nest eggs during market corrections.

• Symbol: WFC
• Share price: $54.03
• Dividend yield: 2.9%
• Berkshire’s stake: 468 million shares

You don’t have to like the company to love the stock. Case in point: Wells Fargo, which a year ago was caught opening millions of fake customer accounts. It was a PR nightmare for the bank that cost the CEO his job. And just when things had started to quiet down, it emerged that employees also charged 800,000 auto-loan customers for car insurance they didn't need. Yet Buffett has stood by Wells Fargo through it all. Bollinger points out that Wells Fargo can survive the flap in the long run because it has diversified revenue sources, market share in key financial products, a large national distribution network and a cheap base of deposits. Wells Fargo is trying to make amends with shareholders as well as customers. The company has vowed to devote one-half to three-quarters of its profits to dividends and share repurchases. At 39 cents per share, the current quarterly dividend has surpassed the 34 cents that was being paid out in early 2009, right before the financial crisis forced the bank to slash its quarterly dividend to a nickel. Wells Fargo is Berkshire's second-largest stock holding behind Kraft Heinz.

With rising fuel prices affecting grocery bills, shoppers are having to get creative to keep their budget under control while restocking the pantry. One way to do that is with a warehouse club membership, like Costco or Sam's Club.

Becoming a member of either store can help you save big on groceries and other household essentials, thanks to each store's member-only pricing and deals on everyday items. However, with so many variables to compare, it can be tricky to decide which club is better for you.

To help you decide, we've looked at how Costco and Sam's Club stack up in several different categories, including everyday prices, product quality, extra perks, and more. Whichever club looks like a better fit for you, make sure to grab extra savings by taking advantage of their sign-up offers.

Right now at Costco, new members can get a gift card worth up to $40 when they join.

• Our pick: Sam's Club

While both Sam's Club and Costco have similar membership tiers and carry similar products, Sam's Club is the cheaper option overall.

For starters, becoming a Sam's Club member is cheaper than signing up for a membership with Costco. The basic Sam's Club membership costs $50 a year, while Costco's basic membership costs $65 a year. A premium membership at Sam's Club is $110 a year, compared to $130 at Costco.

When you compare prices on various food and household items, you'll also likely save more money buying essentials from Sam's Club. In 2024, The Kansas City Star compared pricing on Costco's Kirkland products and Sam's Club's Member's Mark products. While you'll still get bang for your buck shopping at Costco, Sam's Club has a slight edge. This is what they found:

In 2023, AARP also pitted Sam's Club and Costco against each other to determine which club had the best prices. The total cost to buy the same list of 30 grocery items came to $68.94 at Sam's Club and $81.60 at Costco.

However, Costco has also made strides to lower prices on its signature Kirkland products. Some of the more popular items earning discounts include chicken wings, golf balls, king-sized sheets and more.

• Our pick: Costco

While prices might be slightly higher at Costco, the added costs do translate to better quality. Overall, Costco's Kirkland Signature brand has earned more kudos for quality than Sam's Club's products. For example, Kirkland olive oil was one of only a few imported oils that met international and U.S. standards for extra virgin olive oil in a chemical and sensory study by the University of California, Davis.

And Kirkland Signature Tequila Añejo received an "exceptional" score from the Beverage Tasting Institute's Tastings.com. Consumer Reports has named Kirkland's Colombian Supremo whole bean coffee, Greek yogurt and super premium vanilla ice cream as best buys.

• Our pick: It's a tie.

Both the Costco Anywhere Visa Card and Sam’s Club Mastercard have great perks for frequent Costco or Sam's Club shoppers.

The Costco Anywhere Visa Card offers 5% cash back on Costco gas and 4% on other eligible gas and EV charging for the first $7,000 spent per year. Cardholders also get 3% cash back at restaurants and on eligible travel spending. You'll also get 2% on all your Costco purchases and 1% on everything else. Plus, there's no annual fee to offset any rewards you earn. Many other store rewards credit cards offer a higher rewards rate on purchases made in-store — like the Amazon Prime Visa which earns an unlimited 5% back on Amazon purchases — but this card will earn more when you spend outside of Costco.

The Sam's Club MasterCard also has no annual fee and an impressive rewards rate on fuel purchases. The card earns 5% cashback up to $6,000 spent per year (then 1%) on EV charging and at eligible gas stations. You'll also get 3% cashback on dining and 1% on all other purchases. If you spring for the Sam's Club Plus membership, you can also earn up to 5% back on eligible Sam’s Club purchases (3% back with the card, plus up to 2% back from the higher membership tier.) One downside: Those with a basic membership will only earn 1% cash back from shopping at Sam's.

• Our pick: Costco

Both big-box stores offer an array of membership benefits beyond gas and grocery savings that are free or at discounted prices. That includes home improvement and maintenance services, car-buying services, identity protection and pharmacy savings.

But Costco offers more. For example, the warehouse club offers special pricing on life insurance, pet insurance, and auto and home insurance. Members who saved reported an average of $595.86 in auto insurance savings the first year they switched. Costco also offers business health insurance and impressive travel packages.

• Our pick: Costco

Both Costco and Sam's Club have solid return policies. They both offer a risk-free 100% satisfaction guarantee, with just a few exceptions.

At Costco you can return virtually any item anytime, no questions asked, without a receipt or the original packaging — unless you're returning a PC (or other electronic device) or a major appliance, in which case you have 90 days. And of course, Costco does not accept returns on cigarettes or alcohol where prohibited by law.

That's similar to Sam's Club, except Sam's highly recommends that you have the original receipt and packaging. On their site, it says: "We prefer your original receipt or printed order, but if that’s not available, we’ll do our best to process your return without it." To obtain a full refund in some instances, you'll also be required to return the product with its full original packaging.

Related Content

• 20 Secrets to Shopping at Costco
• Amazon Prime Grocery Outlet: A Secret to Saving on Groceries
• Amazon Warehouse: Where Amazon Prime Returns Become Your Online Bargains

• Our pick: Sam's Club

If you don't have plans to get a store credit card from either warehouse club, it's worth noting that Sam's Club accepted a wider variety of credit cards. At Costco, you're limited to Visa cards, but Sam's Club will accept Visa, Mastercard, American Express or Discover. The warehouse club even allows you to use a Walmart gift card to pay for your Sam's Club purchases.

For shoppers trying to maximize credit card rewards by using them on groceries, Sam's Club might be your best choice. Since some of the best travel rewards credit cards are Mastercard or American Express, the flexibility to use any card you like at Sam's Club can help you rack up points or achieve status with your favorite airline loyalty program faster.

Credit cards aside, both warehouse clubs accept debit cards, cash, and checks.

1. Yikes! Your new stove is electronic.

And you’re afraid of a costly repair bill after the manufacturer’s warranty expires in 12 months. Buying an extended warranty that covers five years generally adds 10% to 20% to the cost of the item, says Tim Meenan, the executive director of the Service Contract Industry Council.

2. You could play the odds.

Check the failure rate of the particular brand and model you’re buying, and find out about other consumers’ experiences. “The vast majority of major home appliances don’t break,” says Celia Lehrman, deputy home editor for Consumer Reports, which continues to be critical of extended warranties. In its annual survey, only 17% of gas ranges needed repairs, with a median repair cost of $187. Refrigerators with bottom freezers needed repairs 21% of the time, with a median repair cost of $216; 31% of side-by-side refrigerators needed repairs, with a median repair cost of $194. Even if you have a glitch, it may be diagnosed without summoning a technician by reporting a code or using a smartphone app.

3. You may already be covered.

Many Visa, MasterCard, Discover and American Express cards double a manufac­turer’s warranty of up to 12 months, and cover repairs or replacement up to $10,000 for products purchased with their cards, says Matt Schulz, of CreditCards.com (see the list on its website for details). Hold on to your credit card statement as well as the original receipt.

4. Ask who does the work.

Sears uses its own tech­nicians, but most other warranty programs contract with local repair people. “Whenever I look at highly rated repair businesses, none of them par­ticipate in these programs,” says Kevin Brasler, executive editor of Checkbook.org, which rates service providers.

5. Check out the upstarts.

Several new online pro­viders, such as Protect Your Bubble, SquareTrade and Upsie, charge less for extended warranties. SquareTrade’s five-year warranty on a $1,700 re­frigerator is $299—less than half the cost of a re­tailer’s extended warranty. SquareTrade also just started offering a program in conjunction with Costco.com. Costco provides a two-year warranty for many products purchased in its stores or on its website. SquareTrade will extend the two-year warranty to five years for $100 for appliances costing from $1,000 to $2,000, and $120 for items costing more than $2,000.

6. You can change your mind.

Sears gives you up to 15 days after you buy an item to add its extended warranty. SquareTrade gives you up to 90 days after buying appliances through Costco.com. If you do get an extended warranty and change your mind, you usually have 30 to 45 days to cancel and get your money back.

7. Pay out of pocket.

Rather than spend money on an extended warranty, set aside cash in an emergency fund to cover repairs. If you never have problems, you’ll have savings to pay for the next generation of appliances.

The Problem

A criminal who gets your credit or debit card number can rack up big charges.

Scare Factor

If your credit card number is used fraudulently, you will have to get a new card with a new number, but at least the criminals aren’t spending your money. Legally, you’re respon­sible for no more than $50 in liability for credit card fraud, but all of the major payment networks (American Express, Discover, MasterCard and Visa) promise zero liability.

How to Combat: Stolen Social Security Number | Medical ID Theft | Tax Identity Fraud | Lost/Stolen Electronics

Armed with your debit card or bank account information, however, a thief could drain your checking account. Theft of debit card data at ATMs, which often involves criminals attaching devices to the machines to “skim” card data, has reached the highest level in 20 years, says FICO, developer of the most commonly used credit score among lenders. As the U.S. payment system transitions to microchip technology, crooks will have a harder time intercepting usable data from payment transactions because the information in chip transactions is repeatedly re-encrypted. As a result, fraud will likely shift to an easier target: use of card numbers to make fraudulent purchases online.

How to Avoid It

Arrange with your credit card issuers and bank to receive e-mail or text-message alerts when there are transactions higher than a certain amount—say, $100—or your account balances reach a certain minimum amount. Check your accounts at least weekly to look for suspicious transactions. Watch especially for amounts of $10 or less; crooks often test the authenticity of card numbers by first making small purchases. When you swipe your debit or credit card at an ATM or gas pump, look for an attachment to the card reader, and shield your hand as you enter the PIN in case there’s a hidden camera. Use a bank ATM whenever possible, says Levin.

What to Do If You’re a Victim:

Call your card issuer or bank as soon as you see suspicious activity on your account. With your bank account, as long as you give prompt notification, you likely won’t be responsible for covering the charges, but you may have to wait until the bank processes your claim to get a refund. By law, your debit card liability could be unlimited if you wait more than 60 days from the date of the fraudulent activity to report it. But many banks have policies to protect debit card customers.

How to Combat: Stolen Social Security Number | Medical ID Theft | Tax Identity Fraud | Lost/Stolen Electronics

Buying a new appliance? The retailer will probably give you the hard sell for an extended warranty. But your credit card may already have you covered. American Express, Discover, MasterCard and Visa Signature offer extended warranties on eligible purchases you make with their cards, according to a study from credit card research site CardHub.com. You don’t have to register your purchase, and the warranty provides up to $10,000 in coverage per claim. (Visa Signature cardholders have a lifetime limit of $50,000 in coverage for all claims; Amex and Discover cardholders get up to $50,000 per year. MasterCard has no limit.) Caveat: The card network decides whether you qualify for a replacement or reimbursement for the purchase price, or whether you will have to get the item repaired.

CardHub rated the card warranty programs, and it gives its highest overall marks to American Express. According to the study, Amex will add an extra year to a manufacturer’s warranty that runs as many as five years, compared with one year added to a maximum of three years for the other card networks. (MasterCard World cards extend the original warranty by as many as two years.) Amex and Visa provide coverage for wear and tear and will also extend the warranty on a refurbished item.

If you carry a mix of credit cards, use the one that provides the best extended warranty for a particular item -- for example, use an Amex or Visa Signature card to purchase a refurbished tablet. You’ll need to hold on to your receipt to make a claim. Visa’s Warranty Manager Service lets you send Visa a copy of your receipt and manufacturer warranty information to keep on file in case you make a claim later.

Abbott Laboratories

Drug and medical-device maker Abbott Laboratories (symbol ABT, $44) is focusing on high-growth areas. Last July, the firm said it would sell part of its overseas generic-drug business to Mylan for $5.3 billion. The deal, slated to close in 2015, will allow Abbott to focus on emerging markets, where sales in the third quarter of 2014 rose by double-digit percentages from the same period in 2013 and helped boost overall profits by 13%. “Abbott will have a higher growth profile,” says Mark Freeman, comanager of the Westwood Income Opportunity Fund. (All prices are as of October 31.)

American Express

Unlike Visa and MasterCard, which pride themselves on wide acceptance of their credit cards (Visa’s slogan is “Everywhere you want to be”), American Express (AXP, $90) is known for a more limited reach. But the company is trying to change that. In 2014, Amex launched OptBlue, which allows third-party processors to manage card transactions for small retailers. Execs believe the number of mom-and-pop stores newly accepting Amex could rise by 50% annually for several years. That, plus an improving U.S. economy, could get more consumers reaching for their Amex cards.

Apple

In 2014, Apple (AAPL, $108) proved it could continue to roll out coveted products. Michael Walkley, an analyst at Canaccord Genuity, says he expects a “record upgrade cycle” for the new iPhone 6 and iPhone 6 Plus. In the quarter that ended in September, during which the latest iPhone models were released, Apple saw its strongest revenue growth rate in seven quarters. Its new mobile-payment system, Apple Pay, faces competition, but adoption by retailers is growing. And a high-tech wristwatch, Apple Watch, should start shipping in early 2015.

Gilead Sciences

The case for large biotech companies has never been so compelling, says Matt Peron, head of global stock investing at Northern Trust. Although the industry is churning out many new drugs with long patent lives, some of the stocks remain attractively priced. Gilead Sciences (GILD, $112) is a leading example. Gilead won approval from U.S. regulators in October to sell Harvoni, which could become a blockbuster hepatitis C drug. Gilead also has treatments for HIV. Analysts say profits could increase by 25% in 2015, yet the stock trades for just 11 times estimated earnings.

Macy’s

Fewer people may be going to malls, but Macy’s (M, $58) has taken key steps to customize merchandise and attract shoppers. For example, consumers can check online to see if an item is in a nearby store. “Macy’s understands who its customer is,” says Eric Heyman, comanager of Olstein Strategic Opportunities Fund. If an improving economy boosts consumer spending, Macy’s will be ready. Among other things, Macy’s, which also owns the Bloomingdale’s chain, has started testing same-day delivery from stores. Analysts see earnings rising 13% in the Jan­uary 2016 fiscal year.

Precision Castparts

A boom in the aerospace industry is boosting Precision Castparts (PCP, $221). The firm makes complex molds and other components used to build jet engines. For three of the past four quarters (most recently the July–September period), the company has fallen short of earnings forecasts as clients used up inventory. As a result, the stock has dropped 13% over the past year. But Stephen Levenson, an analyst at investment bank Stifel, says the de-stocking should end in early 2015. Meanwhile, production of the high-tech Airbus A350 XWB and Boeing 787 Dreamliner will boost profits.

Charles Schwab

Low interest rates have pressured profits at Charles Schwab (SCHW, $29), which is waiving fees to prevent clients from suffering losses in money market funds. But the broker is making up for it with volume. According to a report by the William Blair firm, Schwab was on track to gather more than $100 billion in net new assets for the third straight year in 2014. “Schwab is an asset-gathering machine,” says Pin Oak Equity Fund manager Mark Oelschlager. Schwab plans to jump on the “robo adviser” bandwagon in 2015, offering automated portfolios to clients with low balances.

Stanley Black & Decker

Power-tool maker Stanley Black & Decker (SWK, $94) is benefiting from a housing rebound. In the third quarter, sales in Stanley’s do-it-yourself segment rose 9%. Weak performance at a European subsidiary has hurt overall results, but Ron Sloan, senior manager of the Invesco Charter Fund, says Stanley is taking steps to right the business. That will help the company’s profit margins, which Sloan says could climb by as much as three percentage points in 2015. “Companies already operating at high margins won’t have that opportunity,” he says.

Traveling abroad is rarely a cheap proposition. For a recent trip to Europe, I searched for bargain airfares and lodging online, which helped rack up some savings. But another area I found ripe for trimming: the fees on the money you use to pay for goods and services overseas. I'd rather put my money toward admission to a historic site, for instance, or to taste the local cuisine than waste it on obtaining the foreign currency I need to pay for those treats. Here's how you can save:

Go plastic. Credit cards offer some of the most favorable currency exchange rates. The exchange rate through Visa and MasterCard was recently 0.743 euros for one U.S. dollar, compared with 0.669 euros for a dollar from Travelex, one of the major exchange bureaus. "It's a noticeable difference," says Matt Schulz, senior industry analyst for CreditCards.com.

It's best to take a card with an embedded chip that uses a personal identification number for verification at purchase instead of a signature. (Some use both.) Chip and PIN technology provides extra security from data thieves and is the standard used worldwide, Schulz says.

Big banks tend to charge annual fees for chip cards, so look to credit unions affiliated with the government, military and international organizations. Andrews Federal Credit Union's GlobeTrek Visa Rewards card is a chip and PIN card free of standard fees. Pentagon Federal Credit Union also offers several chip cards with no fees, including the PenFed Promise Visa. (You'll need to join the credit union, usually for a small fee.)

Although the need for a chip card "is a little overblown," says Ed Perkins, contributing editor for SmarterTravel.com, "it is a good idea to have one." Without one, you won't be able to use automated machines at train stations or gas stations, for instance. My chip card came in handy late one evening in Venice when I needed to buy a pass for the vaporetto, or water bus, to get back to my hotel. The ticket office had closed for the night at that vaporetto stop, but I was able to quickly do the transaction at an automated kiosk, which took only chip cards.

Ditch conversion fees. Get a card that doesn't levy a foreign-transaction fee, which can cost 1% to 3% of your purchase. In a 2014 study, CardHub.com found that, on average, using a credit or debit card with no foreign-transaction fee on the Visa and MasterCard networks was the cheapest way to convert currency.

Schulz says a fair number of these cards don't have annual fees either, such as Capital One's VentureOne Rewards and Quicksilver Cash Rewards cards. Bank of America's BankAmericard Travel Rewards card comes with a chip but uses a signature. Of the chip and PIN cards, the Andrews Federal card has no annual fee and no foreign-transaction fee. The PenFed chip cards don't have a foreign-transaction fee and most have no annual fee.

The savings can start even before you leave U.S. soil. For instance, before I left the U.S., I purchased airfare directly on BritishAirways.com for an intra-Europe leg of my trip. While I got charged in pound sterling, the conversion to dollars on my statement didn't include an extra fee because I used my no-foreign-transaction-fee credit card to buy the ticket.

Say no to dollars. Some retailers overseas will ask if you want to pay in dollars instead of the local currency. That sounds convenient, and at the end of a long trip, I said okay a couple of times on a day when I did a lot of Irish souvenir shopping. Big mistake! When you pay in dollars, the amount you're charged includes an exchange rate with a markup—meaning you just paid a sneaky conversion fee, even if you are careful to use a no-conversion-fee card like I was. And if you use a card that does charge conversion fees, you'll suffer a double whammy because you'll get socked with that fee, too.

Slash fees on cash. I planned to use my no-foreign-transaction-fee credit card whenever I could, but I couldn't avoid getting cash because I traveled in the Balkans, where cash is king over credit. Even in countries, such as England, where credit is readily accepted, you'll need some cash for small purchases.

But wait to get foreign currency until you arrive at your destination. Then go to a local ATM—it is the cheapest way to get currency, often at a wholesale rate. I was a bit unnerved to arrive overseas with no local currency, but as soon as I got off the plane, I hit an ATM in the airport and quickly had some local currency in hand and at a favorable exchange rate. If possible, wait until you get into town and go to a local bank's ATM, which can have better exchange rates than an airport ATM. Skip the currency exchanges. "Bureaus of exchange generally have the highest transfer rates," says Pauline Frommer, editorial director of travel publisher Frommer's.

Of course, ATMs have costs. Before traveling, check your bank's overseas policy. "Some banks charge $3 to $5 per withdrawal, some charge a 3% conversion fee, and some bad actors charge both," Perkins says. If your bank charges a flat fee, withdraw larger amounts fewer times.

If you're going to travel a lot, Perkins says, "open an account at a bank with a good overseas policy." Perkins says he keeps an account at Bank of America for traveling purposes because account holders can benefit from its international bank partnerships. You can use a Bank of America debit card at the ATMs of France's BNP Paribas and United Kingdom's Barclays, for instance, without paying an out-of-network fee. (Go to www.bankofamerica.com for the list of partner banks.)

A few banks refund ATM fees worldwide. Account holders of Charles Schwab High Yield Investor Checking, Bangor Savings Bank Benefit Checking and Capital One 360 Checking offer this feature. These three also offer no-foreign-transaction-fee debit cards. A bonus, says Odysseas Papadimitriou, chief executive officer of CardHub.com: You'll save time because you won't have to go searching for an ATM that is in network to cut costs.

Avoid using your credit card at the ATM. Such a withdrawal is usually considered a cash advance, with interest racking up immediately.

Cut out the middleman. You're headed to France and know a couple who just came back from a trip to Spain? Ask them if they have any leftover euros they'd like to sell you. And when you return from a trip, see if you know anyone who has an upcoming trip to a country that uses any leftover currency you have. When I returned to the U.S., I was quickly able to unload my remaining 15 euros fee-free to a co-worker headed to Europe a few days later. We both got a favorable exchange rate, and I had dollars back in my wallet.

Exchanging with people in your sphere means you can also offload coins, which exchange bureaus and banks won't take. With coins in larger denominations, such as two euros, commonly used abroad and often given back as change, it's easy to amass a mound of coins, even if you're careful to use them while traveling. Selling those coins to a friend could result in a sizable amount of dollars back in your wallet. At recent exchange rates, if you come back into the U.S. with coins worth 20 pounds, that's an unusable $33.62 if you can't offload them.

Another way to make good use of your remaining foreign currency before you come home: Put leftover coins and paper currency toward your last hotel bill, and pay the balance on your credit card.