If you've ever checked your bank statement and spotted an unexpected overdraft fee, you're not the only one. U.S. banks made a staggering $12.1 billion in overdraft fees in 2024, according to the Financial Health Network.

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Here's what you need to know about sneaky overdraft fees -- and the accounts you can switch to in order to avoid them.

How do overdraft fees work?

When your checking account balance dips below zero and a transaction still goes through, your bank covers the difference and charges you what's called an "overdraft fee." It's basically a small, high-interest loan you never asked for.

Some banks will even rearrange your daily transactions from largest to smallest, increasing the odds that your balance drops below zero. That helps them charge more overdraft fees.

If overdraft fees are showing up on your statements, even just once or twice a year, it's a sign that your bank doesn't have your best interests in mind. The good news is that you don't have to settle for that anymore.

Find a bank that doesn't charge you at all

Many forward-looking banks have eliminated overdraft fees altogether.

What if you're not ready to switch banks?

If you're not quite ready to move your money, you can still take steps to protect yourself in the meantime.

Start by turning on low balance alerts on your banking app so you'll get a notification any time your cash drops below a set amount. This gives you time to move your money or cut spending before you get hit with a fee.

Many banks also let you link your savings account to your checking account to cover overdrafts. But watch out: Some banks still charge a transfer fee for this, so check the terms first.

It's also a smart idea to leave a small cushion in your checking account -- even $50 or $100 can prevent most accidental overdrafts. Pair that with a simple budgeting app that tracks your spending in real time, and you'll have a much better handle on your balance.

Don't let your bank profit from a small mistake

Overdraft fees aren't necessary anymore. If they keep popping up on your account, it's a clear sign your bank is behind the times -- or more interested in charging you than helping you.

Modern banks are leading the way with fee-free accounts, better apps, and higher savings rates. You don't have to put up with surprise charges anymore.

Ready to get started? Open one of your favorite high-yield savings accounts today to protect your money.

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Premium credit cards promise a lot -- huge welcome offers, travel upgrades, statement credits, and exclusive perks.

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But those benefits often come with a steep price tag. And if you're not using the card strategically, you might be paying far more than you're getting back.

Just because a card has premium perks doesn't mean it's a good fit for you. Below are three warning signs that you're not getting your money's worth -- and what you can do instead.

1. You won't spend enough to earn the welcome bonus

One of the biggest incentives to open a new credit card is the welcome bonus. Many premium cards offer bonuses worth hundreds or even thousands of dollars if you meet a spending requirement, usually within the first three to six months.

But these minimums aren't always small. You might need to spend thousands over the course of just a few months to qualify. If that's far above your normal monthly spending, hitting the target can be tough.

And if you're forcing purchases just to reach the bonus, you're putting yourself at risk of carrying a balance and paying interest -- quickly wiping out the value of any rewards.

If you're not sure you can meet the requirement without overspending or going into debt, it's a sign the card might not be worth it.

Want a card with a more reasonable spending requirement? Check out our list of the best no-annual-fee credit cards to get started.

2. The perks don't match your lifestyle

A premium card is only worth the cost if you're actually using the perks it offers. It's easy to get aspirational when you apply for a credit card -- some people overestimate how often they'll use benefits like airport lounge access, free hotel nights, or travel credits.

For example, a travel rewards card might offer a $300 travel credit -- but if you rarely travel or never book through the card's portal, that credit could go unused. The same goes for more niche perks like Uber Cash, streaming credits or fitness-related discounts. These can sound great on paper, but if they don't match your daily routine or preferences, they won't deliver real value.

Before renewing a card with a high annual fee, take a moment to look back over the past year. Which perks did you actually use? Which ones went untouched? If the answer skews heavily toward the latter, it's time to consider a downgrade.

3. You already have a card with similar perks

It's common to carry multiple rewards cards -- but that makes it easy to overlook overlapping benefits. If two or more of your cards offer things like trip insurance, purchase protection, or the similar bonus categories, you're probably paying for a card you don't need.

If you keep both, you'll likely end up favoring one card over the other, anyway, while one of them collects dust -- despite its hefty annual fee.

Every so often, it's smart to lay out your cards side by side and compare them directly. If one card clearly does the job of two, you can save money by closing or downgrading the less useful one.

Match your credit cards to your lifestyle today

The perks of a premium credit card can be valuable, but only if they match your actual spending habits and lifestyle.

If you're paying a high annual fee without getting enough back, it's time to rethink your strategy. In these cases, a lower-fee or no-annual-fee card could offer more value long-term.

Looking for a more affordable credit card option? See our picks for the best no-annual-fee credit cards available now.

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The start of July marks the halfway point of the year, making it a great time to check in on your financial goals and adjust your strategy.

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Whether you're investing for retirement or just trying to grow your money faster, the right mix of accounts and investments can help. Here are four smart options to consider right now.

1. Roth IRA: Lock in tax-free growth

A Roth IRA is not an investment, but an investment account -- and it's one of the most powerful tools for retirement saving. Any investments held in a Roth IRA will grow free of capital gains tax or dividend tax.

Once you reach age 59 1/2, you can withdraw your money without paying taxes, a big win if you expect your tax rate to be higher later.

Roth IRAs also offer flexibility -- you can withdraw your original contributions at any time without taxes or penalties. That makes it a useful option for younger investors or anyone who wants a backup plan before retirement.

The 2025 Roth IRA contribution limit is $7,000, or $8,000 if you're 50 or older. You can only contribute to a Roth IRA if your income is below certain limits, so you'll want to check if you qualify. But if you do, it's a great place for your retirement savings.

2. Taxable brokerage account: Full control at a low cost

If you want to invest on your own terms, a taxable brokerage account gives you maximum flexibility. Although you won't enjoy the tax breaks of an IRA, you can invest with no income or contribution limits.

Taxable brokerage accounts are a great option if:

• You've maxed out your retirement accounts
• You want access to your money before retirement
• You're comfortable managing your own portfolio

3. Low-cost index ETFs: Simple, diversified growth

Index exchange-traded funds (ETFs) remain a smart choice for hands-off, long-term investors. These funds track broad market indexes, like the S&P 500 or the total U.S. stock market.

Because they're so diversified, you'll get reliable long-term returns -- instead of trying to pick winners, you're buying hundreds or thousands of stocks at once.

Total-market and S&P 500 index funds are widely used, and they have low fees and strong historical performance, making them great picks for anyone who wants a simple and effective investment.

4. High-yield savings accounts: Earn more on your cash

Your short-term savings don't need to sit idle. Even with cash you don't want to invest, you can earn 4.00% APY or more with a high-yield savings account (HYSA), offering a mix of growth and flexibility.

That makes HYSAs a great place for an emergency fund or building toward any short- or medium- term savings goals.

These accounts are typically FDIC insured, too, meaning up to $250,000 of your money is protected against bank failure. They also allow easy transfers to your investing accounts.

Make your money work for you

No matter what the market's doing, a good investment strategy strikes a balance between growth, flexibility, and risk.

Whether you're building a long-term retirement plan or just trying to grow extra cash, these four options offer a strong foundation for you to get started today.

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Too many drivers treat car insurance like a set-it-and-forget-it expense. You find a policy once, set up autopay, and renew each year without a second thought. But this habit can quietly cost you hundreds of dollars a year.

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A 2024 survey by Consumer Reports found that just 30% of drivers switched insurance providers in the past five years -- but those who did saved a median of $461 per year. That's a big payoff for a small amount of effort.

If you haven't reviewed your policy or compared quotes in a while, there's a good chance you're overpaying. Here's what to know.

Car insurance rates change often

Even if nothing has changed on your end, your insurance company may change your rate. And your personal situation might have shifted in ways that can affect your premium:

• You've gotten older or improved your credit score
• You moved to a different ZIP code
• You drive less
• You added safety features to your car
• You've had an accident or a traffic violation

All of these factors can affect how much you pay, and not all insurers weigh them the same way. One company might see you as a lower risk, and charge you a lower premium, than another.

You can even set a yearly calendar reminder to review your policy and compare some quotes. Then you'll know you're not missing an easy opportunity to save money.

With our free tool, you might be able to save hundreds of dollars per year just by switching car insurance -- and it only takes a few minutes to find out. Check it out to compare rates from the top companies today.

What to check when you compare

When shopping around for a new policy, make sure you're comparing apples to apples. Don't just look at the monthly premium. Dig in to the details and ask questions like:

• Are the liability limits the same?
• Is the deductible the same?
• Are you getting the same add-ons, like roadside assistance and rental reimbursement?

You might be able to get discounts, too. Some insurers offer savings for bundling with home or renters insurance, having a clean driving record, being a student with good grades, or even paying in full up front.

Make your policy fit your needs

If your life situation has changed, a car insurance policy that made sense three years ago may no longer be a fit. Maybe you now work from home and drive half as much. Maybe you moved to a lower-crime area. Or maybe your teen driver is away at college and isn't on your policy.

Do an annual review to update your insurer on any changes and check that your current coverage would still protect you in a real emergency.

Ready to get started? Check out our free tool to compare rates and potentially save hundreds of dollars on your car insurance today.

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A personal loan can be a helpful way to cover a big expense, consolidate debt, or handle an emergency. But most borrowers don't realize just how much the laundry list of fees can change the actual cost of their loan.

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And as someone who's written about personal finance for years -- and is now looking into a personal loan himself -- I can't emphasize the importance of reading the fine print enough.

Here are the biggest traps to watch for before you sign on the dotted line.

Origination fees eat into your loan amount

The biggest and most important fee you'll see on your personal loan is an origination fee, which is typically taken out of your loan before you even receive the money.

Origination fees usually range from 1% to 10% of the total loan amount, depending on factors like your credit score and the amount of your loan. That means if you take out a loan for $10,000, for example, you may actually get as little as $9,000 -- but you'll still have to repay the full $10,000, plus interest.

For this reason, you'll want to check how much you'll actually get from your loan after the origination fee. If you need a specific amount of cash, you may have to borrow more than expected to cover it.

Ready to calculate how much you'll need? Check out our list of the best personal loans to save on fees today.

Hidden fees can add a lot to your loan

The interest rate you're shown on your loan -- also called the annual percentage rate, or APR -- is supposed to reflect the true cost of the loan, including most fees. But in practice, lenders don't always make every charge easy to spot.

Lenders often tack on extra fees for things like processing or application charges, late payments, returned checks, or early payoff penalties. Yes, you read that right: Lenders will actually make you pay more for repaying your loan early, because charging interest is how they make money.

Altogether, these fees can quietly add as much as 10% to the cost of your loan. Make sure to read through all of the loan terms and ask for a full breakdown of every potential fee before agreeing to anything.

Look out for other potential pitfalls

Lenders are required to give you full loan terms in writing, but it's up to you to read them. Watch for things like variable interest rates that may increase over time, as well as mandatory insurance or other add-ons that increase your monthly payment.

Autopay setups are common, too, and can be convenient -- but they can also be risky if you forget to account for them in your budget, leading to potential overdraft or late fees.

If anything doesn't make sense, ask. A good lender will explain everything in plain English.

Looking for a lender you can trust? Check out this list of our favorite personal loan lenders.

Avoid "guaranteed approval" and upfront payments

Some online lenders or loan "brokers" advertise guaranteed approval or ask for an upfront payment before you get your loan. These are major warning signs.

Legit lenders will never ask you to pay before you receive your funds. And no one can guarantee approval without checking your income and credit.

If you're ever unsure, you can check if the lender is registered in your state or search for complaints through the Consumer Financial Protection Bureau (CFPB) or Better Business Bureau (BBB).

How to protect yourself

Here are a few beginner-friendly tips before taking out a personal loan:

• Compare at least three lenders side by side
• Read the full disclosure and fee breakdown on each
• Use a loan calculator to see your true repayment cost
• Check reviews and ratings from trusted sources

And if the terms seem too good to be true, trust your gut. The best personal loans are transparent, affordable, and clear about what you're getting into.

By watching for fees, reading the fine print, and avoiding shady lenders, you can borrow safely while staying in control of your finances.

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The Federal Reserve kept interest rates steady in its June meeting, which means CD rates aren't likely to drop overnight -- but they may start slipping soon.

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Many experts still expect the Fed to lower rates later this year. If that happens, banks could begin cutting CD yields in anticipation. So if you've been thinking about locking in a long-term CD, this might be your best window.

Learn why (and how) to open a 5-year CD before rates start to fall.

Why a 5-year CD makes sense right now

Historically, CD rates tend to follow the Fed's lead. When the Fed lowers its benchmark rate, banks usually reduce CD rates as well -- sometimes even before the cut happens.

Case in point: even with no rate cut yet, some banks have already started trimming their CD yields. But right now, top 5-year CD rates are still among the best we've seen in years, with some banks currently offering around 3.50%.

Opening a 5-year CD at these rates means you can lock in a solid return even if the market shifts. That gives you more certainty than something like a high-yield savings account, which can change rates at any time.

And with a 5-year CD, you'll get that guaranteed return for a whole half-decade.

Who should open a CD?

A CD isn't right for everyone. But it can be a great fit if you have money you don't need to touch and want a predictable return.

You should consider a CD if:

• You have short- to medium-term savings goals. A CD can be perfect for saving for a car, vacation, or wedding.
• You want a guaranteed return. A fixed rate shields your savings from drops in the market.
• You have an emergency fund already. CDs charge penalties for early withdrawal, so they're best for money you can leave untouched.

CDs are also FDIC insured up to $250,000, meaning your money's protected just as it would be in a savings account.

Don't wait -- open a CD today

CD rates haven't significantly dropped yet -- but that could change fast if the Fed signals cuts.

By opening a 5-year CD now, you can secure a strong return and protect yourself from future rate drops for years to come.

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Did you know it's possible to have "too much" car insurance?

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Many drivers pay more for car insurance than necessary because their coverage exceeds their needs. In fact, having more coverage than you need could be costing you several hundred dollars per year.

Here are three red flags to help you spot if you're overinsured -- and how to fix it.

1. You have coverage you don't need

Not all auto insurance coverages make sense for every driver.

For example, if you own an older vehicle with a low resale value, comprehensive and collision coverage might cost more than your car is worth. In that case, dropping these optional coverages can lower your premiums without much risk.

On average, U.S. drivers pay $421 per year for comprehensive coverage and $743 per year for collision coverage, according to Insurance.com. If you get in an accident, you've also got the deductible to cover, which means you could end up paying more out of pocket than the car is worth.

If you already pay for roadside assistance through services like AAA or your phone provider, you may be doubling up by having it included in your car insurance. You might also be paying for rental reimbursement coverage, which isn't necessary if you have a backup vehicle and won't need a loaner while your other car is getting fixed or replaced.

It's smart to regularly review your policy to cut coverages that don't fit your situation.

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2. You have overlapping or duplicate policies

Sometimes people unknowingly pay twice for the same protection. This happens if you have multiple insurance policies that cover the same risks, or if you have duplicate coverage already included in another policy.

For instance, you might have rental car reimbursement in both your auto and homeowners insurance. An easy way to save money is to to track all your insurance products to avoid paying twice for the same coverage.

3. Your deductible is too low

Your deductible is the amount you pay out of pocket before insurance kicks in. Choosing a very low deductible, therefore, usually means a higher premium (your monthly payment).

If you're a safe driver and have enough savings to cover a bigger chunk of an accident, increasing your auto insurance deductible can lower your monthly or yearly premium significantly.

That means you'll be reducing your insurance costs while still providing solid protection. If you've got a decent driving record and are looking to save a little, raising your deductible (and decreasing your premium) could be a smart move.

Review your policy and save today

Having the right amount of car insurance coverage means balancing risk with upfront cost.

The best ways to save on car insurance include avoiding paying for unnecessary coverages, overlapping policies, and low deductibles that drive up premiums. It's smart to review your insurance regularly and adjust it to fit your current needs and financial situation.

Want to save on your car insurance today? Check out this free tool to compare rates from the top insurance companies.

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We're firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Motley Fool Money does not cover all offers on the market. Editorial content from Motley Fool Money is separate from The Motley Fool editorial content and is created by a different analyst team.The Motley Fool has a disclosure policy.

The Federal Reserve is meeting next week, and while no immediate rate change is expected, there's a bigger question on the horizon: What comes next?

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If the Fed starts preparing markets for rate cuts later this year, it could mean that CD rates will fall as well. CD rates have been relatively high for the last few years, but that won't last forever. In fact, they could start dropping soon.

Here's why you may want to get ahead of a possible rate cut by locking in your CD rate now.

Why the Fed's meeting matters

As of now, futures traders see a 99% chance that the Fed will keep rates unchanged at its June 17-18 meeting, per the CME FedWatch Tool.

But that doesn't mean cuts definitely aren't on the horizon. If Fed officials mention planned rate cuts for later this year, banks could react by trimming their CD rates in advance.

In fact, some have already started -- which is why now may be the time to act.

CD rates are still high -- for now

CD rates are closely tied to the Fed's benchmark rate. As that rate rises or falls, CD yields tend to follow. And right now, top CD rates are still near multiyear highs, with APYs as high as 4.60%.

Once you open your CD, your return is locked in for the duration of the term, which is the main advantage of a CD. That's why you'll want to lock in a high CD rate while you still can.

CD basics: How they work and how to open one

Put simply, a certificate of deposit (CD) is a type of savings account that locks in your money for a set period, usually anywhere from a few months to a few years, in exchange for a fixed interest rate.

You can open one in just a few simple steps:

1. Choose a term. Common terms range from 6 months to 5 years. Pick one based on when you'll need the money.
2. Compare rates. Shop around for the best APYs. Online banks often offer higher rates than traditional banks.
3. Fund your CD. Most banks let you open a CD via bank transfer or check. Minimum deposits vary by institution.
4. Make a plan for the maturity date. Once your CD matures, you can "renew" it by opening a CD with the same term (and a potentially different rate) or transfer the cash to a different account.

One popular strategy involves building a CD "ladder" -- splitting your money across different term lengths. This creates staggered maturity dates, so a portion of your money becomes available at regular intervals to provide flexibility.

You'll also want to avoid early withdrawals, which usually come with penalties that can reduce your overall return. Discipline is key.

Don't wait for rates to fall

There's a chance CD rates hold steady through the summer. But if you wait too long, you could miss your chance to lock in a high yield. Some banks are already reducing CD offers based on what they expect the Fed to do.

And while alternatives like high-yield savings accounts offer competitive returns, their rates are variable. If you're sitting on extra cash you don't need right away, putting it in a fixed-rate CD now could give you peace of mind.

Want to lock in a great rate while you still can? Compare top CDs and open one today.

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Your credit limit is the maximum amount a lender allows you to borrow on a credit card. So higher is better, right?

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In most cases, yes. A $50,000 credit limit, for example, means you likely have a strong credit history, high income, and low existing debt. But for big spenders, a high credit limit comes with risks.

Here's what you need to know about the pros and cons of a $50,000 credit limit.

Benefits of a high credit limit

Greater financial flexibility

A high credit limit can be a great way to pay for big purchases or cover you in an emergency.

You never want to charge more than you can pay off in full. That's why everyone needs an emergency fund in a savings account. But a high-limit credit card can come in very handy when you need to cover a big expense -- especially if it's on short notice.

Improved credit utilization ratio

Credit utilization is the ratio of your credit card balances to your credit limits, and it accounts for about 30% of your credit score. Basically, credit issuers like to see that you're not always using up most or all of the credit they're giving you.

If you maintain low balances, a higher credit limit will lower your credit utilization ratio and increase your credit score.

Valuable rewards and perks

Premium, high-limit credit cards often come with superior rewards, including higher cash back rates, travel rewards, and exclusive offers.

Click here to check out one travel credit card with a minimum credit limit of $5,000 and user-reported limits reaching $50,000 or more. You'll also earn boosted points in certain categories like travel and dining, and a higher redemption value for your points when redeemed through the issuer's portal.

Risks of a high credit limit

Potential for overspending

A higher limit may tempt some people to spend beyond their means, leading to increased debt and financial strain.

If you have a history of overspending, it's probably smart to start with a lower credit limit and slowly work your way up.

Impact on credit score

While a higher limit can improve your credit utilization ratio, carrying a high balance can harm it. It'll also result in interest charges if you don't pay it off on time.

Always remember the number one rule of credit cards: Never spend more than you can pay off in full every month. Try to avoid carrying a monthly balance at all costs.

Should you aim for a $50,000 credit limit?

A $50,000 credit limit can be a blessing or a curse. Consider the following:

• Financial discipline: If you consistently pay off your balances in full, a higher limit can be a plus.
• Income level: A higher income may justify a larger credit limit if you're spending lots every month.
• Credit goals: A higher limit can lower your credit utilization ratio and thus improve your credit score.

If you struggle with managing credit or are prone to overspending, however, a lower limit may be a better starting point.

Want to build up to a higher credit limit today? Consider one of the cards from our expert-curated best high-limit credit cards list as your starting point.

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If you've been waiting for the right time to open a certificate of deposit (CD), this is probably it.

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CD rates are still hovering at 4.00% APY and above, a huge increase from just a few years ago when rates were stuck near zero. But with the Federal Reserve expected to cut interest rates later this year, CD rates are all but guaranteed to fall as well.

Here's why now's the time to lock in a CD and get a higher guaranteed return today.

Rate cuts are expected later this year

The Fed has signaled that it will start cutting interest rates later this year, despite balking at its recent May meeting. When that happens, CD rates will almost definitely follow.

Historically, when the Fed begins a rate-cutting cycle, banks respond by lowering interest rates on savings products like CDs. CD rates tend to move in the same direction as the federal funds rate, which affects how much banks are willing to pay depositors.

That means today's best CD rates could disappear quickly. And we've already seen big banks like Marcus and Bread Savings trim their CD rates in anticipation.

Locking in now could protect your savings

Opening a CD today lets you lock in a high rate for a fixed period of time (generally between three months and five years). If rates fall later this year, you'll still earn that guaranteed return while others get stuck with lower yields. Meanwhile, savings accounts have variable rates that can change at any time.

CDs also come with federal insurance (up to $250,000 per depositor, per bank), so you don't have to worry about bank failure. Just be sure you won't need the money during the term so you can avoid early withdrawal penalties.

How to open a CD

Opening a CD is simple. Here's how to do it:

1. Compare rates -- Look at top online banks and credit unions, not just traditional banks.
2. Choose a term -- Determine how long you can afford to lock up your money.
3. Check the fine print -- Look for early withdrawal penalties, minimum deposits, and renewal rules.
4. Fund your CD -- Transfer funds from a linked account

Many banks let you open a CD in minutes online, and some offer no-penalty CDs if you want more flexibility.

Lock in your higher rate today

If history is any guide, CD rates won't stay this high for much longer. With rate cuts expected in the coming months, now's a smart time to lock in a high, guaranteed return. Just make sure you're comfortable keeping your money parked until the term ends.

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