APY GUY: Maximize Your Savings & Earnings

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I Bonds Rates – Now 6.89% APY!


You don’t need to be told that we’re living in unprecedented times. From sharp GDP growth to record inflation rates, we’re living in an economy that is expanding and changing rapidly.

If you’ve been following the bond market at all, you know that the Treasury Department made a shocking announcement about I bonds in November of this year.

Here, we’re going to answer questions you may have about I bonds from what they are to how to buy them.

Let’s dig in.

What Are I Bonds?

Series I savings bonds or I bonds are government-issued debt securities that accrue interest at a rate adjusted for inflation twice a year. Rather than having a single interest rate used to determine your return, I bonds have two: an inflation rate that changes every six months with the economy and a fixed rate that will not change throughout the entire life of the bond. These rates combine to give you a composite rate.

On November 1st of 2022, the U.S. Treasury Department announced that I bonds will earn a variable rate of 6.89% for the next six months through April 2023.

This new rate will apply to all new I bonds issued in the next six months before it is adjusted again at the beginning of May 2023, at which time the variable rate may increase or decrease.

These bonds are considered to be incredibly safe investments because there is no risk of value depreciation. Interest accrues and compounds semiannually (every six months) for up to 30 years or until cashed out. Earnings are automatically deposited back into the bond. I bonds do not require high minimum purchases and offer tax advantages and protection against inflation.

Current Rates

The variable semiannual inflation rate for I bonds is 6.89% and the fixed rate is 0.00% (which has been the case for the past several years).

All new bonds issued between now and April 2023 and existing bonds will earn 6.89% interest.

As of January 2023, the national average rate for an interest-bearing savings account is 0.33% and for a 1-year CD is 1.28% APY according to recent FDIC data. At the top digital banks, the best you’ll get on a 1-year CD is about 4.50% APY.

As you might expect, there is no way to tell for sure what the inflation rate will be six months or a year from now. May 2023 may bring a much lower earnings rate depending on inflation, which is expected to slow in the next six months.

Who Are I Bonds for?

If you are looking for somewhere safe to park your cash, these bonds may be for you. Many financial advisors and investment experts are recommending these securities to help hedge against inflation. If you can afford to lock some money up for at least five years (to avoid the early withdrawal penalty), an I bond is a good way to guarantee a small return.

Series I savings bonds tend to be best for investors seeking low-risk investments, but they shouldn’t be your only investment. They are good for medium- or high-net-worth individuals who want to diversify their portfolio and lower net worth individuals who want to secure a small portion of their wealth after maxing out contributions to a retirement account.

You are eligible to purchase an I bond if you meet one of the following requirements:

  • You are a United States citizen living in the country or abroad
  • You are a United States permanent resident
  • You are a civilian employed by the United States anywhere in the world

Children under the age of 18 may qualify to own an I bond if purchased on their behalf by an adult. Parents and adult custodians can open a TreasuryDirect account for a child and use that to purchase I bonds, making the child become the bond’s beneficiary.

It is common for I bonds to be used to help pay for education and retirement or gifted to younger individuals. Using I bonds to pay for education comes with tax benefits. Any bonds you purchase for yourself count toward your own annual purchase limit but bonds purchased as a gift do not. When you buy a bond as a gift for someone else, it counts toward their limit.

There are electronic and paper bonds. Electronic bonds are available in penny increments of $25 or more and paper bonds are available in denominations of $50, $100, $200, $500, and $1,000.

Advantages

The main advantage of I bonds over other investment vehicles is that they freeze your money and thus protect it from losing value due to inflation for as long as it is still earning interest.

I bonds are also one of the most secure investments you can make. The U.S. Treasury has never defaulted on bonds before, so there is virtually no risk of bond holders losing their principal.

Another pro is that you do not have to pay state and local taxes on interest and you can avoid federal taxes too. There are no fees associated with purchasing or cashing out I bonds.

I bonds are an ideal method for saving for education. In fact, many people consider them to be good alternatives to 529 savings plans.

I Bonds vs. EE Bonds and Treasury Inflation-Protected Securities

Another type of bond you can purchase from the U.S. Treasury is a Series EE savings bond or EE bond. EE bonds share many similarities with I bonds: they mature after 30 years, are sold at face value, and earn interest monthly.

The biggest difference between EE bonds and I bonds is that EE bonds earn a fixed interest rate and I bonds earn a variable interest rate that is dependent on inflation. EE bonds guarantee a return equal to double your principal investment after 20 years (adjusted if needed by the Treasury Department), but I bonds offer no earnings guarantees.

Which Treasury bond is best depends on the market. If inflation rates are high or expected to increase, I bonds will likely end up earning more interest over their lifetime. But if inflation rates are fairly low, EE bonds will likely earn more interest. Given how much inflation has increased this year, I bond holders are coming out on top.

Treasury Inflation-Protected Securities or TIPS are also similar to I bonds. TIPS are designed to hedge against inflation as well, but they differ from I bonds in several important ways.

First, TIPS are riskier because the principal is adjusted for inflation and deflation. You lose principal if the U.S. economy goes into a deflationary period and gain principal if the U.S. economy goes into an inflationary period. TIPS are available in terms of 5, 10, and 30 years and purchased at auction rather than at face value. You can purchase between $100 and $5 million. Rates for TIPS change and you must visit a Treasury auction to bid.

Rather than earning interest monthly, TIPS earn interest just twice a year at a fixed rate. Interest is paid on the adjusted principal until the account reaches maturity. Unlike I bonds, you can sell TIPS before they mature. TIPS and their interest are exempt from state and local tax but subject to federal tax.

Considerations

There are a few important considerations to keep in mind when purchasing I bonds

The first is that I bonds have a low minimum purchase requirement. You can open an electronic I bond with as little as $25 and a paper I bond with as little as $50 (note that you can no longer purchase paper bonds at banks).

You can purchase up to $10,000 in electronic I bonds per calendar year and up to $5,000 in paper bonds. If you purchase an I bond as a gift, that amount will not count toward your annual purchase limit. Instead, it will count toward the recipient’s limit, and they will also be the one who is responsible for paying taxes on it.

Series I savings bonds are issued at cash value. Your bond will never be worth less than you paid for it and it is not possible to lose money on this investment. (There is no guarantee that you will earn money, but you will not lose any.)

If you decide to cash in your I bond before it matures, you may do so without incurring a penalty if you wait five years to do so. If you choose to cash out within five years of opening the bond, you will pay an early withdrawal penalty equal to the last three months’ interest. You can keep your bond open for as long as you like, but it will not continue to earn interest after 30 years. You must keep your bond for a minimum of one year, at which time it becomes liquid.

I bonds themselves are tax-exempt but the interest you earn is subject to federal income tax. You may enjoy additional tax benefits if you use your bond to finance education under the Education Savings Bond Program.

How to Buy I Bonds

Ready to join the wave of people purchasing I bonds for the first time at this incredible rate?

First, decide whether you will purchase an electronic or paper bond.

To purchase an electronic bond, visit the U.S. Treasury website at TreasuryDirect.gov.

You will need to create a TreasuryDirect account using your tax identification number and an email address.

At this time, you will link a bank account and personalize your profile. From your account, navigate to the bonds purchasing page and enter the amount you would like to purchase. Register the I bond in the name of its intended recipient (if you are purchasing for someone other than yourself, provide their information).

To purchase a paper bond, you will need to use your IRS tax refund. This is the only way to purchase paper I bonds. You will use Form 8888 to allocate your refund to be used for the purchase of a U.S. Treasury bond and specify that you want an I bond. You used to be able to purchase paper I bonds at banks and credit unions, but this is no longer possible.

You can purchase up to $10,000 in electronic I bonds per year and use your tax refund to purchase up to $5,000 worth of government I bonds per year. These limits can be combined for a total of $15,000 in I bonds.

How to Cash Out

When you’re ready to cash out your electronic I bond, visit the TreasuryDirect site again and navigate to the ManageDirect page. From there, link the bank account you would like to send the funds to and transfer the money.

To cash out your paper I bond, visit a bank or credit union and present your bond and identity verification documents.

Final Thoughts

While you won’t get rich from an I bond alone, this investment is a sound one, especially at the current earnings rate. We recommend I bonds to anyone looking for a safe investment to add to their portfolio. This type of security is ideal for conservative investors, not aggressive investors looking for an opportunity to grow their wealth dramatically. You do not risk losing your investment when you purchase an I bond.

The more you can afford to spend at the current earnings rate of 6.89%, the better, but any amount will likely be a worthwhile investment. When the bond turns liquid after a year, you’ll probably end up with more cash than you would have with another deposit account if you choose to cash out.

E-Trade Premium Savings Account – Now 3.50% APY!


E-Trade has teamed up with Morgan Stanley to offer banking products along with their well-renowned brokerage services.

This account is ideal for those who use E-Trade on the brokerage side and would like to earn a competitive APY (annual percentage yield) on uninvested funds.

Money can be moved seamlessly from brokerage account to premium savings account with easy access to your funds and quick deposits.

E-Trade’s Premium Savings account currently pays an APY of 3.50% on all balances and has no minimum deposit requirements or balance requirements to maintain.

To see if this account is right for you, continue reading our review below.

E-Trade Premium Savings Rate + Account Details

image credit: etrade.com

As mentioned the E-Trade Premium Savings Account has no minimum deposit requirement to open it nor any balance requirement to maintain it. That said, if you open the account and fail to fund it within 30 days, they will close the account.

Premium Savings Account Rate

Min. DepositAPY
$03.50%
APY = Annual Percentage Yield

To put this yield into context, the national average for a savings account and a money market account sit at just 0.44% APY and 0.33% APY, respectively, according to FDIC data.

There are, however, a few online banks and nationally available credit unions now paying 4.00% APY or more on variable rate savings accounts.

All funds are federally insured by the FDIC up to $500,000. This is double the normal coverage of $250,000 for deposits held at most banks and credit unions.

Compounding and Crediting Interest

The E-Trade Premium Savings account features daily compounding interest. Interest begins compounding on the date of your initial deposit and continues until the last full day prior to the withdrawal.

Interest is credited to your account monthly.

Opening the Account

The account is available to consumers nationwide and can be opened online in minutes. E-Trade also has branches in 17 states where you can stop by to open the account in-person if you’d prefer. Below are the following states in which E-Trade has branches. You can locate a specific branch here.

  • Arizona
  • California
  • Colorado
  • Washington, DC
  • Florida
  • Georgia
  • Illinois
  • Massachusetts
  • Michigan
  • Minnesota
  • New Jersey
  • New York
  • North Carolina
  • Oregon
  • Pennsylvania
  • Texas
  • Washington

Managing the Account

Once your account is open, you can transfer money between your brokerage account and the Premium Savings account easily and you’ll have instantaneous access to your transferred funds.

If you’re depositing funds via the mobile app, only a portion of your funds will be immediately available. You must wait until the 4th business day to access the full deposit. This is similar to Robinhood and other brokerage accounts with savings features.

E-Trade’s apps receive relatively high ratings. Their IOS app has a 4.6 out of 5 star rating with nearly 140k ratings and their Android app has a 4.0 out of 5 star rating with over 40k reviews.

How E-Trade Premium Savings Compares

E-Trade offers one of the highest yields on the market for brokerage accounts with FDIC-insured savings account options.

For comparison see the chart below:

BrokerageAPY on idle cash
E-Trade3.50%
Robinhood1.50% – or – 4.00% with Gold
SoFi3.25%
Fidelity2.21%
APY = annual percentage yield

Final Thoughts

If you are already an active trader on E-Trade and are in the market for a savings account to park uninvested cash, then opening up the Premium Savings Account by E-Trade via Morgan Stanley is a no-brainer.

That said, if you’re just in the market for a high yield, FDIC-insured savings account or money market account without any brokerage account tied to it, then slightly higher yields can be found through a handful of online banks and credit unions with nationwide acceptance.

Fidelity Cash Management Account – Up to 2.21% APY!


Fidelity Investments Inc. is a multinational investment management corporation offering a wide range of personal and professional investment products and advising options.

This financial services company was established in 1946 and is now the fifth largest asset management firm in the world controlling more than $2 trillion in assets.

Rated the #1 online broker of 2020 by both Barron’s and Investor’s Business Daily, Fidelity is also considered to be an overall sound choice for cash management accounts by review publications and customers alike.

If you’re not familiar with cash management accounts, they are all-in-one accounts that combine features of savings accounts, checking accounts and investment accounts all in one place, with one institution.

Cash management accounts let you capitalize on convenience and security and this brokerage firm offers one with several notable perks. If you want a cash management account that can do more than the standard checking, savings, or investment account can, here’s what you’ll need to know about the cash management account offered through Fidelity.

About the Fidelity Cash Management Account

image credit: fidelity.com

Fidelity Cash Management accounts are brokerage accounts, not bank accounts. This makes managing your finances easier by allowing you to both save and invest under the same roof.

That said, you can also use this much like you would a checking account since it offers:

  1. ATM cash access,
  2. a debit card,
  3. the option for bill pay,
  4. and unlimited check writing capabilities. 

Your uninvested balance earns interest similar to an online savings account or you can choose to park your cash in other low-risk investment options like a money market account or CD.

Now let’s get under the hood and see how these accounts actually work.

Remember these are not deposit accounts nor bank accounts.

In fact, the cash you put in your Fidelity Cash Management account doesn’t actually stay with Fidelity at all (though it can be accessed through Fidelity).

Instead, Fidelity partners with other FDIC-insured banks, called Program Banks, and carries out what is known as “FDIC-Insured Deposit Sweep” or simply “Sweep” (a practice typical of cash management accounts).

Basically, Fidelity moves your money into different interest-bearing deposit accounts with other institutions so that it can leverage their FDIC insurance and maximize your coverage.

Your money will be swept into Program Banks chosen by Fidelity and you will be notified about which have been selected for you when you are presented with your Program Bank List. There are always going to be a minimum of five different banks available for Sweep, but exactly which ones are available to participate depends on demand and other factors. 

This practice of sweeping makes it possible for Fidelity Cash Management accounts to be FDIC insured up to $1.25 million. Most deposit products are only insured up to $250,000, but because your money will be distributed across multiple institutions and insured separately by the FDIC, coverage can extend well beyond this typical maximum. However, the coverage limit per bank is still $250,000, which is why you may have up to five different Program Banks. 

Fidelity will automatically sweep the first $245,000 of your cash management account balance into the first bank on your Program Bank List, reserving $5,000 for accrued interest, then the next $245,000 into your second bank, and so on. Just know that it is your responsibility to make sure that your cash is always within coverage limits at each Program Bank. If you do find that you’ve, for some reason, exceeded FDIC coverage limits or you wish to change one or more of your banks, call Fidelity at 800-931-9987 to update your Program Bank list as needed. 

Remember that you are not a customer with Program Banks but with Fidelity. If you are already a customer with a Program Bank beforehand, keep in mind that your aggregate balance will be used to assess coverage.

You will also need a Fidelity investment account in order to open a Cash Management account.

Fidelity Cash Management Account Rate + Details

The Fidelity Cash Management Account has no minimum balance requirements and no monthly maintenance fees.

Rates

BalanceAPY
$0 – $99,999.992.21%
$100,000 +2.21%
APY = Annual Percentage Yield

To put this yield into perspective, the current national average for a savings account is 0.30% APY and just 0.05% APY for interest-bearing checking accounts, according to FDIC data.

That said, some online banks are now featuring APY’s above 4.00% and some brokerages offering savings accounts, like the E-Trade Premium Savings account are offering 3.25% APY. See more comparisons in the table below.

Interest compounds daily and credits monthly.

You can use this account to invest in Fidelity CDs, mutual funds, fixed-income instruments, or MMAs as well, but the current rates won’t be too enticing.

According to Fidelity, the Fidelity Cash Management account is meant to supplement, not replace, your Fidelity brokerage account, which does not allow for spending but has many more investment options to choose from.

The Fidelity Debit Card, issued by PNC Bank, can be used at any Fidelity ATM or out-of-network ATM worldwide and all ATM charges made from your cash management account will be fully reimbursed. It can also be linked to Apple Pay.

You can use your Cash Management account to enroll in Fidelity BillPay, write as many checks as you want, deposit checks, and make transfers between this and external accounts, and more—all at no cost to you.

How Does it Compare

There’s quite a few cash management accounts on the market to choose from and their feature sets and interest rates vary widely.

Below is our rundown of the most popular cash management accounts of 2021 benchmarked with Fidelity on top features and yield.

Institution/AccountFDIC insuranceDebit CardAPY
SoFi Money$1.5 millionYes3.75%
Wealthfront Cash Account$1 millionNo3.80%
Betterment Everyday Cash Reserve$1 million+Yes3.75%
Aspiration Spend & Save$2 millionYes5.00%
Affirm Savings$250kNo3.50%
Fidelity Cash Management$1.25 millionYes2.21%
APY = Annual Percentage Yield

Many of the cash management accounts that come with a debit card also feature ATM fee reimbursements worldwide. The Fidelity Cash management account offers an unlimited amount of these but every institution and account is different. You’ll have to check with the institution’s account details page for more information.

Reviews and Customer Sentiment

Overall customer satisfaction is at 4.4 out of 5 stars on the Fidelity site. Customers appreciate how comprehensive Fidelity’s product lineup and website are and the general consensus is that the online banking platform is easy-to-use and does the job.

In terms of the cash management account, the disadvantages are that the product isn’t as competitive as it could be in terms of rates and APY and Fidelity doesn’t have many branches. In addition, there have been reports of transactions into and out of cash management accounts taking longer to go through than what is typical. Some customers have also expressed frustration in getting support from Fidelity.

The Fidelity Cash Management account was given a rating of 4.5 stars out of 5 on NerdWallet because it has good ATM coverage, ATM reimbursements, and no monthly fees, but the account is dinged for not earning a better rate of return.

There are less than 200 Fidelity Investor Centers or branches across the country. This limited in-person branch access might not be what you want from a bank, but Fidelity makes up for this in other ways. For one, customer support can be reached 24/7 and the Fidelity app is very highly rated on the App Store — 4.8 stars — and Google Play — 4.2 stars. Call (800) 343-3548 to reach a representative at any time or day of the week or reach out via the site’s convenient live chat feature.

Robinhood Cash Management – Now 4.00% APY on Idle Cash!


Earn 1.50% APY on idle cash balances. Must first have a Robinhood brokerage account.

The Robinhood Cash Management account is similar to other cash management accounts we’ve covered this year in that it combines features of both checking and savings accounts, but the accounts are offered from brokerages rather than banks, and are designed to be a convenient place to park uninvested cash.

Like other cash management accounts, the Robinhood Cash Management account leverages the FDIC insurance of multiple banks by sweeping your funds into these partner banks at the end of each day to accrue interest and be protected by federal deposit insurance.

Currently Robinhood has two options available for consumers:

  1. Instant account which applies 1.50% APY (annual percentage yield) on all uninvested cash.
  2. Robinhood Gold which applies 4.00% APY to idle cash + additional features but comes with a $5.00/month fee.

To see if either of these accounts are right for you, continue reading our review below.

Instant Account Features and Details

Robinhood Cash Management is a free service that comes with no minimum deposit or balance requirements. That said, you must first open the brokerage account before activating the cash management product, and there may be some fees associated with that such as transfer fees or other account service fees. Robinhood fees are covered further down in this article.

Interest Rate and APY

As with all competitive cash management accounts on the market, Robin Hood Cash Management pays a respectable APY (annual percentage yield) on your idle funds.

When Robinhood first released this product the interest rate was one of the highest around, even beating the top online savings and money market accounts. Today, however, while still competitive the yield is much more modest.

Min BalanceFDICAPY
$0$1.25 million1.50%
APY = Annual Percentage Yield

To put this yield in perspective the average APY on a savings account and an interest checking account sit at just 0.06% and 0.03% APY, respectively, according to recent FDIC data.

Robinhood Cash Management VS Competitors

Here’s a quick look at the top cash management accounts on the market when benchmarked against Robinhood Cash Management.

Institution/AccountFDIC insuranceDebit CardAPY
SoFi Money$1.5 millionYes1.25%
Wealthfront Cash Account$1 millionNo0.85%
Betterment Everyday Cash Reserve$1 million+Yes0.35%
Aspiration Spend & Save$2 millionYes3.0% – 5.0%
Affirm Savings$250kNo0.65%
Fidelity Cash Management$1.25 millionYes0.01%
Robinhood Cash Management$1.25 millionYes1.50%
APY = Annual Percentage Yield

One point that deserves repeating is that you must open a Robinhood brokerage account first before opening the Robinhood cash management. That is not the case with every other cash management account on the list above. All of these except Robinhood can be opened as stand alone accounts.

Benefits, Features and Drawbacks

Robinhood cash management is loaded with perks and benefits combining the best of checking accounts and savings accounts into one tidy package. It does, however, come with some drawbacks and disadvantages that traditional savings and checking accounts may not.

Here’s a complete list of current features:

  • An APY that is 6x the national average according to the FDIC
  • No minimum deposit or monthly balance requirements
  • No monthly service fee
  • Free debit card
  • No out-of-network ATM fees (ATM owner fees may apply)
  • No foreign transaction fees
  • No overdraft fees

Perhaps the most notable item on this list is the lack of foreign transaction fees. This is a unique benefit and one that could be of tremendous value if you travel outside the country frequently.

Robinhood uses the Allpoint and MoneyPass ATM network for free usage at over 75,000 access points. Robinhood also never charges for out-of-network ATM usage but the ATM owner may impose a fee for using your Robinhood debit card in their machine(s). Many cash management accounts such as Fidelity and others reimburse these fees worldwide, but Robinhood does not currently.

Here are more drawbacks to consider with Robin Cash Management:

  • No out-of-network ATM reimbursement
  • You must first open and maintain a brokerage account with Robinhood
  • Customer service is limited and receives poor reviews by online users
  • Frequent outages reported
  • No cash or check deposit options

Robinhood Fee Schedule

Because you’re obligated to open a Robinhood brokerage account in order to take advantage of Robinhood cash management, you may encounter some fees on that side from time to time depending on the account activities you make.

Below is a full list of fees that Robinhood imposes for account services and transfers.

ActionFee
Debit Balance Transfers$0
Returned Check, ACH, Wire & Recall/Stop Payments$0
ACATS, Outgoing$75
Domestic Wire Transfer $0
International Wire Transfer $0
Domestic Overnight Check Delivery$20
Electronic Statements & Confirms$0
Paper Statements$5
Paper Confirms$2
Domestic Overnight Mail$20
International Overnight Mail$50
Paper Form CRS$0

There are also fees associated with the stock trading side of the brokerage account. You can download their full fee schedule here for more information.

How to Upgrade to Gold

You can upgrade to Gold at any time from your computer or mobile app.

Robinhood also provides members with a free 30 day trial to see if the features are right for you. After the 30 day trial a $5 per month fee will be charged to your account at the beginning of each billing cycle.

What you get with Gold

Here are the added benefits you get with a Robinhood Gold account.

  • 4.00% APY on all idle and uninvested cash
  • Larger Instant Deposits for all Gold members whose Instant Deposit status is in good standing.
  • Professional research provided by MorningStar
  • Level 2 market data from Nasdaq
  • Access to margin investing at 7%. Margin investing costs 11% without gold.

We should note that if you have a margin balance that is uninvested this sum will not earn interest.

The 7% margin interest is an annual rate applied to borrowed sums of $1,000 or greater.

12 Best Stock Picking Services for 2022


Full disclosure: We may receive financial compensation when you click on links and are approved for products from our advertising partners. Opinions and product recommendations on APYGUY are those of our writers and have not been influenced, reviewed or approved by any advertiser. Learn more about how we make money.

Many investors choose to pay for a stock-picking subscription to help them research potential investments. There are plenty of newsletters, stock-picking subscriptions, and investment information sites designed to help people who want to buy individual stocks make good decisions. 

Whether you are new to stock market investing or you just want to make more informed decisions without dedicating your free time to researching stocks, a subscription to a stock picking service or stock information website could provide the boost you need to build a profitable portfolio of growth stocks.

Top 12 Stock Picking Services, Subscriptions, and Websites of 2022

Below are the best stock picking services we’ve found and evaluated for October 2022. The services vary based on the type of investing and/or trading you intend to do.

Best Stock Picking Service for Long-Term Buy and Hold Investors: Motley Fool Stock Advisor

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Subscribers can see every recommendation offered by Stock Advisor throughout the entire history of the service.

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Motley Fool Stock Advisor may be a good fit for you if:

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Motley Fool Rule Breakers is the second most popular stock picking service provided by the financial media company Motley Fool. They recommend stocks in emerging industries that have a sustainable advantage along with competent management. Rule Breakers’ advisors look for companies with strong consumer appeal that are currently undervalued. 

Rule Breakers Basics

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Best for: Investors who want to consistently invest in growth stocks.

Motley Fool Rule Breakers may be a good fit for you if:

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Best Stock Picking Service for Day Traders: Trade Ideas Premium Plan

The Trade Ideas Premium Plan uses an artificial intelligence (AI) assistant to help subscribers research potentially lucrative investments. The AI assistant runs more than one million simulated trades using over 70 proprietary algorithms each night before the markets open. 

Scan results, curated by real people before they become official stock picks on the Trade Ideas platform, include the method used to choose the stock, why it may perform well and how to find similar stocks.

A live simulated reading room allows subscribers to see how the stock-picking service’s recommendations perform without risk. Users have access to real-time streaming ideas to facilitate skill-building. 

What you’ll get with Trade Ideas Premium Plan: Price alerts, Trade of the Week newsletter, five new trade ideas each Sunday night, Rules-based virtual trading room for active traders and long-term investors, fully-functioning AI assistant (Holly) that you can connect to your separate brokerage account to execute trades automatically.

Trade Ideas Premium price: $2,268 per year or Standard for $1068

Compare features below:

Best for: Long-term investors and day traders who want access to robust technology and also want to learn how to invest.

Trade Ideas Premium Plan may be a good fit for you if:

  • You have an established portfolio and plan to purchase larger volumes of stocks
  • You want to learn how to invest and trade using a simulated trading platform
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Based in Chicago, Zack’s Investment Research offers constant monitoring of stocks to help investors decide whether to buy, hold, or sell individual investments. You can access the investment research software on Zack’s Investment Research site for free. Bull and Bear of the Day provide insights about two stocks (one Bull and one Bear) to help investors decide which stocks to hold or buy and which to sell. 

Zack’s rates stocks from one (strong buy) to five (strong sell) along with ratings for value and growth and momentum. Subscribers can enter their current stocks and funds to get up-to-date ratings 24/7. 

What you’ll get with Zack’s Investment Research: Focus List including long-term stock recommendations, Equity Research reports, Custom Stock Screener, and The Zacks #1 Rank List.

Zack’s Investment Research Premium track record: Stocks rated as a #1 Strong Buy beat the S&P 500 by more than 14% (on average) for the past three decades. Stocks rated as a #5 Strong Sell underperformed the market by 8%.

Take a look at Zack’s Strong Buy rated picks vs the S&P 500 over the last few years:

YearZack’s Strong BuyS&P 500
2022-7.14%-9.29%
2021+41.10+28.68
2020+33.86+19.27

Zack’s Investment Research Premium price: $249 per year after a 30-day trial

Best for: Fundamental investors

Zack’s Investment Research may be a good fit for you if:

  • You have an active portfolio and aren’t afraid to buy or sell stocks to maintain growth
  • Have the experience and knowledge needed to make independent decisions about your portfolio
  • Are willing to devote time and money to the pursuit of creating a profitable portfolio

Best Stock Picking Service App for Momentum Investors: Seeking Alpha App Premium Subscription

image credit: seekingalpha.com

Seeking Alpha’s app provides comprehensive investment news along with the opinions of thousands of experienced traders. Subscribers to Seeking Alpha’s Premium Tier app can opt into push notifications, email alerts, and texts to stay on top of breaking news in the world of stock market investing. 

Premium subscribers can create watch lists using the stock tracking portion of the app to get a custom feed. 

Seeking Alpha Premium App track record: Quant performance beats the market by four-to-one, stocks rated as very bullish created a 1,369% return over the S&P 500 and had an average annualized return of 29%. 

What you’ll get with Seeking Alpha Premium app subscription: Stock quant ratings, stock dividend grades, author ratings, author performance, unlimited access to all Premium content, watch list creation, news alerts, fewer ads than the free limited version of the app, and conference call transcripts.

Seeking Alpha Premium app price: $19.99 per month

Best for: Research-driven investors

Seeking Alpha Premium app may be a good fit for you if:

  • You want original stock news (not news-aggregator)
  • You want to interact with other investors about strategy
  • You base your investment decisions on ideas from other investors and original news

Read our full review of Seeking Alpha here.

Best Stock Picking Service For Technical Analysis: The Maley Report

The Maley Report offers no-frills information about stocks, including fundamental, macro, and technical analysis. Matt Maley has more than 35 years of experience trading on Wall Street and is now a market strategist at Miller Tabak + Co. Subscribers to The Maley Report have access to his analysis of what’s happening in the stock market.

What you’ll get with The Maley Report: Aggregates of Matt Maley’s videos, blog posts, and trade alerts, educational resources to help investors learn Maley’s strategy, a regular email newsletter with an overall outlook on the market and discussion of what’s to come.

The Maley Report price: $49 per month or $490 per year with a 30-day money-back guarantee

Best for: Fundamental and technical analysis investors

The Maley Report may be a good fit for you if:

  • You want actionable stock insights based on a number of factors
  • You want information from an experienced investor willing to discuss his methods for choosing high-performing stocks

Best Stock Picking Service For Day Traders & Swing Traders: Pilot Trading

image credit: pilottrading.co

Pilot Trading uses artificial intelligence to watch other day traders and swing traders in real time and make predictions about how the market may change from one minute to the next. Subscribers can create a custom watchlist or choose a pre-made one in the app. Link to a brokerage account to use the stock research app and make trades through the app.

What you’ll get with Pilot Trading: Information about real-time trading activity, alerts when market sentiment shifts, and the ability to link brokerage accounts. 

Pilot Trading price: $19.95 per month after a 14-day free trial

Best for: Forex, futures, crypto, and stock traders

Pilot Trading may be a good fit for you if:

  • You are an active trader interested in cryptocurrency investment, futures, or forex
  • You want in-app trading that connects to stock trading platforms

Best Stock Picking Service For Day Traders: Scanz

image credit: scanz.com

Scanz offers two ways to get information to inform day trading activity. The Scanz News Streamer offers SEC filing on NASDAQ, NYS, and AMEX alerts. It also provides two broker integrations and streaming charges. The Trade Scanner offers Level 1 and Level 2 data on NYSE, AMEX, and NASDAQ with unlimited watchlists, a montage window, streaming charges, and breakout alerts. 

Subscribers can choose between the services or bundle them to get a discount.

What you’ll get with Scanz: Access to customized alerts for price changes, percentage changes, volume changes, and important company news.

Scanz price: $79 per month for news only, $99 per month for scanner only, $149 per month for news and scanner; seven-day free trial.

Scanz may be a good fit for you if:

  • You are an active day trader who wants up-to-the-minute breaking news that’s curated to help you reach your goals
  • You want to filter stocks based on a predetermined set of criteria, including penny stocks

Best Stock Picking Service For Penny Stocks: Tim Alerts

Tim Alerts is a platform created by Tim Sykes. The successful penny stock investor started with just $12,000 and in about ten years became a multimillionaire. Sykes started Tim Alerts to help penny stock investors learn how to make money in the stock market by purchasing penny stocks. The platform provides finance services, training for retail investors, and educational content. 

What you’ll get with Tim Alerts: Access to a chat room with a paired trading app, daily penny stock picks newsletter with stock watchlists, and customizable push notifications.

Tim Alerts price: $679 per year

Best for: Penny stock traders

Tim Alerts may be a good fit for you if:

  • You are curious about investing in penny stocks and want to learn from someone with documented and ongoing success
  • You want daily stock picks delivered to your inbox
  • You learn best by interacting with other investors

Best Stock Picking Service For Income Investing: AAII Dividend Investing

image credit: invest.aaii.com

AAII Dividend Investing provides direction to investors who want to build a portfolio of dividend-paying stocks. The platform provides subscribers with research and information produced by its proprietary stock picking process. AAII searches for and highlights stocks providing a mix of asset and yield quality. It also looks closely at recommended company’s management teams to make sure that the stock is likely to pay out dividends for years to come. 

What you’ll get with AAII Dividend Investing: Access to a target portfolio with a mix of Geographical Exposure and GISC Sector investments, weekly webinars, and access to weekly stock ideas and the lead analyst.

AAII Dividend Investing price: $2 for the first 30 days and then $199 per year or $359 for two years

Best for: Dividend investors

AAII Dividend Investing may be a good fit for you if:

  • You want reliable information about low-risk dividend-paying stocks
  • You want instant access to the information you need to build a portfolio with fully vetted dividend stocks

Best Stock Picking Service For Swing Trading: Mindful Trader

image credit: mindfultrader.com

Mindful Trader helps swing traders make confident decisions about when to buy and sell stocks. Short-term movements in the stock market can be hard to follow, even for devoted traders. Mindful Trader offers up to 15 text or email alerts each week to help traders manage an active portfolio of investments. 

What you’ll get with Mindful Trader: Stock trade alerts via text and email, between five and 15 trade alerts each week, clear guidance about when it may be smart to open or close positions, and historical data on every recommended trade since Mindful Trader’s inception.

Mindful Trader price: $47 per month; cancel anytime

Best for: Swing traders

Mindful Trader may be a good fit for you if:

  • You want an easy way to take advantage of quick movements in the market
  • You want access to live positions in a portfolio with historical data

Best Stock Picking Service For REIT Stocks: Millionacres Real Estate Winners

image credit: millionacres.com

Investors involved in real estate investing and REITs may find that the valuable and condensed information included with a Millionacres Real Estate Winners subscription helps them level up their investing game. 

Millionacres Real Estate Winners aims to help investors understand the complicated world of real estate investment with recommendations and stock picks to help you create a portfolio of money-making stocks. 

What you’ll get with Millionacres Real Estate Winners: Investing ideas with guidance on how to get started in the real estate market, monthly new stock recommendations, updates on previously recommended stocks, “Top 10 Investment Alerts” quarterly, unlimited access to education resources on the Millionacres site. 

Millionacres Real Estate Winners price: $149 per year 

Best for: Buy and hold REIT investors and those curious about getting started with REITs

Millionacres Real Estate Winners may be a good fit for you if:

  • You are a beginning investor interested in making successful REIT trades
  • You are an experienced investor seeking bit-sized monthly investment alerts about real estate equities and REITs to support your current trading activity
  • You want to use real estate investments to create a portfolio that produces consistent and reliable results for years to come.

Why Subscribe To A Stock Picking Service?

Paying for advice about which stocks to pick can be a great time saver. It’s crucial that you trust your source of information, however. Subscribing to a stock picking service requires an investment, which can be tough to justify if the service doesn’t have a long and dependable track record of choosing up-and-coming companies. 

To get your money’s worth, you’ll need to take the service’s advice and buy the stocks they recommend. Stock picking services make the most sense for investors who already have some money in the stock market and have the extra money and confidence it takes to buy individual stocks. 

Even with a stock picking service, you’ll need to know enough about how the stock market works to determine whether a specific stock is a good fit for your portfolio. If you are new to buying stocks, it’s wise to spend time learning about how other investors research stocks. The Khan Academy offers a great deal of free and unbiased education about stocks and bonds in their Finance and Capital markets section. 

What To Look For In A Stock Picking Subscription

🥇 Track record: The stock picking service should produce returns for subscribers that purchase recommended stocks. Look for how the service’s choices performed compared to a benchmark index. Growth stocks should perform over time. 

💸 Price: Some stock picking services cost thousands of dollars each year. Look for a modestly priced service; not one that you couldn’t cover the cost of with gains from your portfolio. 

📈 Results you can reproduce: Some of the best-performing investments aren’t available unless you are an institutional investor. They may be able to buy stocks at a lower price before it goes public. If you can’t reproduce the results in your portfolio, the service has no value to you. 

📚 Education: A good stock picking service doesn’t just periodically send you the names of stocks to buy. You should gain knowledge when you read about how and why they chose a specific stock. The service should help you build the skills you need to evaluate recommendations based on your unique criteria, investment goals, and risk tolerance. 

Bottom Line

Stock picking services should help you build the skills you need to make independent decisions about your portfolio. Even if you only subscribe to a single stock picking service, it’s wise to gather information from a number of sources before you decide to buy or sell any single stock. Many of the services listed here offer free information and resources. Always research stock picks on your own and make sure they are a good fit for your portfolio. 

If you decide to try out a stock-picking service, take full advantage of the service during the free trial (if there is one) before you commit.

Charles Schwab Private Client 2022 Review – Is it Worth it?


image credit: schwab.com

Founded in 1971 in San Francisco, California, Charles Schwab is the largest publicly traded investment services firm in the world with over $7.8 in total assets. There are an estimated 33.6 million clients with this brokerage across the world.

Are you interested in becoming a wealth management customer with Schwab? In this article, we’re going to go over everything you need to know about Charles Schwab Private Client and Wealth Management to help you decide if this firm can help you meet your long-term financial goals–and if it’s worth the fees.

What Is It?

Schwab Wealth Management is a subsidiary of financial services company Charles Schwab. This firm offers investment advising and portfolio management services to help you create a wealth management strategy at any stage of your life. 

Wealth management is available through Charles Schwab Private Client. This is a relationship package that connects you with a dedicated Private Client Advisor as well as a Financial Consultant. 

Your Financial Consultant will point you in the right direction when you have questions and serve as an intermediary between you and the brokerage firm. Your Private Client Advisor will help you manage your portfolio and provide ongoing investment guidance.

You must pay to be a Private Client and meet the requirements to qualify. See the next section for details.

How to Become a Private Client + Fees

To become a Private Client, you must have at least $1 million to invest when enrolling. If you already have a Financial Consultant with Charles Schwab, ask them about becoming a Private Client.

There is a fee for being a Private Client. The annual asset-based fee is 0.8% to start but decreases as your investment balance increases. Take a look at the fee tiers below:

  • For the first $1 million in billable assets, you will pay a fee equal to 0.80% of your portfolio.
  • For the next $1 million in billable assets (between $1 and $2 million), you will pay a fee equal to 0.75% of your portfolio.
  • For the next $3 million in billable assets (between $2 and $5 million), you will pay a fee equal to 0.70% of your portfolio.
  • For all assets in excess of $5 million, you will pay a fee equal to 0.30% of your portfolio.

There are no fees for making withdrawals, individual fees for consulting and advising services, internal transfer fees, or direct deposit fees. You will pay the same investing fees as anyone else investing with Charles Schwab.

All Private Clients receive the same level of wealth management features and benefits outlined in this article.

Who Is It For?

Private Client wealth management from Charles Schwab is designed for high-net-worth individuals. This is not a low-cost service, so it is not recommended for beginners or those just starting out with investing. 

To make the most of membership with this firm, you should already have at least some clear goals for your retirement, investments, and personal wealth. While you will collaborate with your Private Client Advisor to create a personalized strategy, you will benefit from their expertise most if you have specific questions about what investments you should be making.

You also must have at least $1 million to invest, which will be a significant barrier for most. And the more you invest, the lower your fees, so those with more than $1 million to invest will save significantly.

Schwab Wealth Management services can be especially beneficial for those with complicated financial situations or goals. With ongoing advising and tracking, you will have the support you need to make your strategy a reality no matter what changes may occur.

Features and Benefits

As a Charles Schwab Private Client, you receive comprehensive wealth management services that include the following: 

  • Investment planning
  • Retirement planning
  • Tax planning
  • Estate planning
  • Risk management and insurance
  • Banking and credit management
  • Education and family support

All of the advice and guidance you receive as a Schwab Private Client is completely personalized to your situation and goals. 

Working with Schwab as a Private Client is an “ongoing collaboration, with you in control” that focuses on a wealth management strategy, an experienced team, and a personalized approach. Let’s dig into each of these aspects.

Wealth Management Strategy

You will work with your Private Client Advisor to develop a wealth management strategy that is goal-oriented, diversified, and disciplined. You will discuss the specific goals that you have now and in the future as well as needs that can be met through investing, whether that’s growing your personal wealth, planning for your retirement, or something else. 

You will have access to a wide range of investments through Schwab Private Client Investment Advisory, from stocks and bonds to ETFs and mutual funds. Advanced trading like options and futures trading is also available. Your Advisor will help recommend investments to you based on your income, risk tolerance, etc. 

On an as-needed basis (when you contact your Advisor), your portfolio’s performance will be reviewed to ensure that you are on track to meet your short- and long-term goals. Your Advisor will help you make adjustments as needed.

Experienced Team

All Schwab Private Client Advisors and Financial Consultants are experts in their field and highly qualified. Each Private Client has one of each kind of wealth specialist on their team. Your Financial Consultant will serve as a coordinator between you and your Private Client Advisor and you and the brokerage firm as a whole. Your Private Client Advisor will provide the following services:

  • Portfolio evaluation and investment recommendations
  • Assessment of your wealth management needs
  • Progress monitoring for your wealth management strategy and adjustments

Your Advisor is an expert on topics including risk management, asset protection and hedging strategies, executive compensation, business succession, charitable giving, fixed income, liquidity needs, and more. You can contact your wealth specialists whenever you have a question or concern. Note that only Schwab Private Clients receive dedicated advising from an Advisor of their own.

Personalized Approach

The final component of Private Client wealth management is a personal approach to your strategy that includes conversations with your team of wealth specialists, collaboration between you and your team, execution of the strategy you agree on, and evaluation of your portfolio’s success on an ongoing basis. 

If at any point your needs change or you feel your strategy needs to be reassessed, your Private Client Advisor will review your situation with you to help you strategize and update your portfolio and financial plan. Every investment strategy is completely unique to the individual Private Client.

All of these services are included under the cost of being a Private Client. For example, you will not be charged a separate fee when you meet with your Financial Consultant or Private Client Advisor.

Pros and Cons

Pros

✅ Easy to use. The platform is comprehensive and fairly easy to use, making it a great choice for beginners and intermediate investors alike. Advisors are plenty knowledgeable and some of the best you could ask for, and this brokerage has a reputation for delivering quality recommendations and results overall.

✅ Many choices. With Schwab, you have a lot of choices when it comes to how you invest your wealth. Charles Schwab offers a robust suite of products to trade and tools you can use to make informed decisions about them, so you won’t really feel like you’re missing out on much if you go with this brokerage. Cryptocurrency options could be better but this shouldn’t hold you back much.

✅ Highly personalized. Private Client is a highly personalized wealth management service. You will not receive generic advice from anyone on your financial team. And with a dedicated Financial Consultant and Private Client Advisor, you will enjoy above-average customer service and have multiple options for getting help in a timely manner when you need it.

Cons

🛑 Fees. The fees for Charles Schwab Private Client are actually right around average for wealth management firms, but it’s still a lot to pay. Not only is the flat fee for Private Client services high, but trading fees for activities such as options trading and margin trading are rather high as well.

🛑 No automatic rebalancing. Your portfolio won’t be automatically rebalanced when the market is especially volatile. This is something that other brokerages might do for you. 

🛑 Your advisor won’t invest for you. Any time you want to update your portfolio or have a question about your strategy, you need to contact your Private Client Advisor yourself. They will provide recommendations but won’t invest for you. If you don’t know what questions to ask your advisor, you might struggle to make the most of this service. While it’s nice to have the option to reach out, you might be looking for something less involved.

Is It Worth It?

Whether or not the price of Charles Schwab Private Client wealth management is worth it for you really comes down to how you plan to use these services.

While you can find a wealth management account with lower fees, this is one of the most comprehensive products out there. If you have big investing goals, a complicated financial situation, or just a lot of money to manage, this service is going to be far more worth it than if you were just starting to invest and hadn’t thought about your long-term goals much.

You can probably find a service that will let you keep a larger percentage of your returns, but if you value customer service and personalized financial guidance, Schwab Private Client can provide these things. To really maximize the service, you should definitely contact your Private Client Advisor and Financial Consultant regularly with questions and use the resources available to you. 

Schwab also offers a satisfaction guarantee. If you’re not completely satisfied with your experience as a Private Client, you may qualify for a full refund of all eligible fees as long as you make your request within 90 days of paying the fee. For Schwab Private Clients, this includes your program or advisory fee. You can contact your Financial Consultant with any concerns or to request a refund. Trade fees do not qualify for a refund.

If you’re looking for a more affordable alternative, you might consider a robo-advisor. Robo-advisors use automated investing algorithms to choose and execute investments for you based on your profile. Because they are primarily digital, they are able to charge much lower fees than traditional wealth management and advising firms. This is also more hands-off for you, the investor, as the robo-advisor will do almost everything for you.

Related: Compare this to Citi Personal Wealth Management to see which one may be right for you.

Final Thoughts

Overall, Charles Schwab Private Client and wealth management is not a bad option for you if you meet the specific criteria for making the high fees worth it. It is a comprehensive service with many beneficial features for experienced investors with short- and long-term goals.

This service is not a good fit for the average investor but for high net-worth individuals who are more than happy to pay higher fees for more personalized advice and above-average customer service. Beginning investors may not benefit much from becoming Private Clients. If you’re looking for an option with lower fees, another brokerage or robo-advisory services could be better.