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The returns savers can get on their money are the highest they’ve been in 15 years, yet most people don’t have their cash in a high-yield savings account.
Higher returns are “the only free lunch in finance,” says Greg McBride, Bankrate’s chief financial analyst.
Amid stubborn inflation, fewer Americans are saving at all.

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The returns savers stand to get on their money are the highest they’ve been in 15 years, thanks in part to stubborn inflation, which pushed the Federal Reserve into hiking interest rates over the past year.
Top-yielding online savings account rates are now just north of 5%, the highest since 2008, and much higher than last year’s 0.8%, according to Bankrate.com.

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Even Apple got in the game with a savings account offering a 4.15% interest rate.
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“Higher returns on federally-insured savings and money market accounts represent the only free lunch in finance,” said Greg McBride, Bankrate’s chief financial analyst. 
Meanwhile, the savings account rates at some of the largest retail banks, which have been near rock-bottom for years, are currently 0.39%, on average.
“On a $10,000 balance, that’s $500 you could be earning, versus close to zero,” said Ken Tumin, founder of DepositAccounts.com.  

While savers could get better returns on their cash, just 22% of savers are earning 3% or more on their accounts — and nearly as many savers are not earning any interest at all, according to a report from Bankrate.
Most people said the main reasons for not switching to a high-yield savings account were because they preferred their local branch or were comfortable at their current bank. Some also said they worried about the security of their cash at an online institution or they didn’t have enough savings to make the switch worthwhile.
49% have less in savings, or none, compared to 2022
Americans, overall, are saving less. Nearly half, or 49%, of adults have less savings or no savings compared to a year ago, according to a separate Bankrate survey from February.
More than one-third also now have more credit card debt than emergency savings, which is the highest on record.

If you are not part of the banking system, you are not benefitting from savings rates and not likely building credit very effectively,

Greg McBride
chief financial analyst at Bankrate

“Inflation has been running very hot, so savings has been a casualty of that in many households,” McBride said.
The average American’s savings are 32% behind where they should be when scaled against their salary, according to one analysis by DollarGeek based on data from the Fed’s Survey of Consumer Finances.  
4.5% of households are unbanked entirely
And then there are those who don’t save at all, at least at a bank or credit union.
In 2022, 4.5% of households had no checking or savings account, according to the FDIC’s latest survey.

The most common reasons cited for being unbanked included not having enough money to meet minimum balance requirements and distrust of banks, followed by concerns over account fees.
Although more households can rely on online payment services such as PayPal and Venmo for day-to-day transactions, “if you are not part of the banking system, you are not benefitting from savings rates and not likely building credit very effectively,” McBride said — “and those can have pretty significant ripple effects on your finances, not only now but for years to come.”
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For the past three years, states have been required to provide continuous Medicaid coverage to enrollees.
That meant people on Medicaid couldn’t be dropped from the program during that time.
Starting this month, however, states can disenroll people and as many as 14 million enrollees could lose coverage.

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As a pandemic-era policy winds down, millions of people on Medicaid may lose their coverage — even though they remain eligible, advocates say.
For the past three years, due to the Families First Coronavirus Response Act, states have been required to provide continuous Medicaid coverage to enrollees in order to get federal funding. That meant people on Medicaid couldn’t be dropped from the program during that time.

“From March 2020 to March 2023, people could only enter Medicaid, and no one was at risk of losing coverage,” said Kosali Simon, professor of health economics at the O’Neill School at Indiana University.
Starting this month, however, states are resuming the usual eligibility redetermination process, which may lead to difficulties for millions of Americans, many of whom are already in a vulnerable position.
“The Medicaid population is disproportionately low income, with chronic or debilitating conditions, and they also frequently move residences or do not speak English as their primary language,” said Caitlin Donovan, a spokesperson for the National Patient Advocate Foundation.
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The expiration of the continuous coverage provision could result in as many as 14 million people losing their Medicaid coverage, according to the Kaiser Family Foundation. Nearly 7 million people may be dropped from their plans even though they still qualify.

“The states may not have the correct contact information for them, or even if they do, [enrollees] may not realize what the forms are when they receive them in the mail,” Donovan said.
Here’s how to avoid losing your Medicaid coverage if you believe you remain eligible.

Be on the lookout for notices about coverage

In the following months, states are likely to reach out to Medicaid beneficiaries in multiple ways, Donovan said.
“People should always check their mail for notices from their state Medicaid agency, but they can also check email, texts, phone calls or even e-portals where they may manage their care,” she said.

You’ll want to quickly provide any information your state agency requests from you, Donovan said, adding, “It may keep you enrolled.”
Some of the notices states are sending to people are confusing, Donovan said.
For example, she said one state told someone that they no longer qualified for Medicaid but then said their eligibility was still being determined. This is why communication with your agency and making sure they have the latest information for you will be crucial, she said.
“This is going to be a confusing process for a lot of people,” Donovan said. “If you receive notice, don’t give up hope.”

You can appeal if you’re dropped, find new coverage

Your state should provide you with information on how to appeal your coverage decision, should they deem you ineligible, Donovan said. That process should unfold within a certain time frame to avoid too long of a gap in your coverage.
Anyone who loses their appeal for Medicaid coverage could look for insurance on the public exchange, Donovan said, where a special enrollment period is open through July.
“The marketplace has subsidies in place so you should be able to find a zero monthly premium plan and may even qualify for out-of-pocket assistance as well,” she said.
In some states, former Medicaid enrollees may actually be automatically transferred to a marketplace program. “Every state is different,” Donovan said.
She is especially concerned that millions of children will become uninsured over the following months.
Parents who are dropped from Medicaid shouldn’t assume that their children no longer qualify either, she said. Children can be eligible for Medicaid or the Children’s Health Insurance Program at higher income levels than adults.
“Basically, double-check everything,” Donovan said. More

Those armed with a newly minted college diploma are entering a job market that suddenly looks a little less promising than it did a few months ago.
Employers now project hiring 4% more new college graduates than they did from the Class of 2022, a new report said. But that’s down from the projection employers made in the fall, of hiring 15% more year over year. 
Experts share their best advice for students entering the job market.

The outlook for newly minted graduates doesn’t look as good as it once did.
Employers plan to hire about 4% more new college graduates from this year’s class than they hired from the Class of 2022, according to a report from the National Association of Colleges and Employers.

However, that’s down significantly from earlier projections: In the fall, employers said they would boost hiring roughly 15% year over year. 
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Tech companies, in particular, have dramatically scaled back on their college hires, the NACE report found.
Year to date, job cuts are up nearly 400% from the same period a year ago, led by layoffs in the tech sector, according to a recent report by outplacement firm Challenger, Gray & Christmas.
As those layoffs mount, job openings have also begun to fall. Available positions in February declined to below 10 million for the first time since May 2021, according to data from the U.S. Department of Labor.

“We know companies are approaching 2023 with caution, though the economy is still creating jobs,” said Andrew Challenger, senior vice president of Challenger, Gray & Christmas.

Start job hunting early

As a result, many college seniors are jumping on opportunities: 62% have already accepted their first job after college, compared with only 20% from the Class of 2022 at this time last year, according to a report by LaSalle Network.  
Soon-to-be graduates “want to have something hat in hand more than before,” said LaSalle Network CEO Tom Gimbel. 
His advice: “College seniors should be interviewing with as many companies that they can and not worry about the industry or location.”
“The earlier you start planning the more options you have,” he said.

Vicki Salemi, career expert at Monster, suggests setting up job alerts to find openings as they become available and aim to apply within 24 hours.
But first, take a few minutes to craft a cover letter, tailor the executive summary and reorder your bullets to mirror the job description, she said. For example, “If the first line item is about travel, highlight that you studied abroad.”  
Then, do one last review to catch any typos or grammatical errors before hitting send.
And don’t just apply online, cautioned Barbara Safani, president of Career Solvers in New York.
Recent or soon-to-be grads can also stay ahead of their competition by networking with parents, professors, family friends, classmates and an extensive alumni network. “Attend campus career fairs to get a chance to talk to employers face to face,” Safani said.
“Be present; don’t hide behind a screen,” she said.
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Smart Tax Planning

April 18 is the last chance for most Americans to avoid late filing and payment penalties for 2022 federal taxes.
There’s still time to file an extension via IRS Free File, which pushes the filing deadline to Oct. 16.
However, you still need to pay your balance by the original deadline or you’ll start accruing penalties and interest.

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The federal tax deadline for most Americans is April 18, and there’s still time to file for an extension. But the clock is ticking.  
As of April 7, the IRS received more than 101 million returns, but the agency expects to receive in excess of 168 million through the end of the year.

“If you don’t file the extension by the original deadline, you miss the opportunity,” said Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida. 

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

Exceptions may include filers living outside the U.S. who receive an automatic two-month extension, with a June 15 deadline, and certain members of the military who may have more time, with varying extensions, Lucas said.
You may also have an automatic extension to file if you’re living in an area recently affected by natural disasters, including most of California, parts of Alabama and Georgia, among others.

How to file a federal tax extension

There are several ways to file a federal tax extension if you can’t make the April 18 deadline. Your state filing may need a separate extension.
You can file Form 4868 electronically via IRS Free File, which provides free guided tax prep software. Anyone can use IRS Free File to request an extension, regardless of income, according to the IRS.

If you file Form 4868, it’s very clear that you know exactly what you’re doing.

Owner at The Wealth Planner

The second option is to make an electronic payment and select “extension” as the reason, which provides an automatic six-month extension without filing Form 4868, the agency says.
But the first option may bypass mistakes or confusion. “If you file Form 4868, it’s very clear that you know exactly what you’re doing,” said John Loyd, a CFP and owner at The Wealth Planner in Fort Worth, Texas. He is also an enrolled agent.
You can also print and mail Form 4868, but it must be postmarked by the federal filing deadline — and you may want to opt for certified mail for tracking.

‘Not an extension for payment’

The federal extension gives you an extra six months to file, but it’s “not an extension for payment,” warned Linda Farinola, a CFP and enrolled agent at Princeton Financial Group in Plainsboro, New Jersey.
“You still need to estimate your taxes due and make a payment online,” she said. Otherwise, you’ll rack up a late payment penalty of 0.5% of your unpaid balance per month, capped at 25%, plus interest, which currently compounds at 7% daily.

“Your saving grace would be that there is no penalty for filing a late return after the tax deadline if a refund is due,” Lucas said. However, filing an extension means you’ll have to wait longer for that payment.
If you can’t cover your estimated balance, you may be eligible for payment plans and other options through the IRS. More

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In another tough college admissions season, more students were rejected or waitlisted at their top-choice schools.
Now students are left with fewer options and only a short time to figure out their next move ahead of National College Decision Day on May 1.
Experts share their best advice before choosing a school.

Students have just a few weeks to figure out which college they will attend ahead of National College Decision Day on May 1, which is the deadline many schools set.
But with a record-breaking increase in applications pushing acceptance rates to all-time lows, some college-bound seniors may have a tough decision to make, or pivot to back-up schools. 

If you didn’t get the news you hoped to receive, “keep an open mind,” said Connie Livingston the head of college counselors at college counseling firm Empowerly and a former admissions officer at Brown University — there is absolutely a path forward, she said, although it may take doing a little more legwork.
To that end, experts share their best advice on how to frame your decision before choosing a school, including navigating a waitlist and, of course, factoring in financial aid.
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How to decide on a college

For starters, settle on a few schools among the list of acceptances, based on which are the best fit in terms of cost, academics, campus life and other factors. Then, hit the road.
For students who didn’t get accepted at their top choice, use this opportunity to revisit other schools, advised Eric Greenberg, president of Greenberg Educational Group, a New York-based consulting firm.  “A lot of colleges have programs for accepted students and incoming freshmen, which can establish a comfort level.”

Keep in mind that you can still transfer to a school higher up on your wish list after a semester or two, he said. “Realize that you are really making a one-year commitment,” Livingston added. “This does not have to be the end all and be all.”

What to do if you’ve been waitlisted

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Waitlisted applicants have neither been outright rejected by a college nor have they been extended a formal offer of admission.
Instead, they may be considered for a seat between now and September, depending on whether there’s sufficient space for them in the incoming class, among other factors.
The first thing seniors who were waitlisted should do is write a letter of continued interest to the college to let them know why they want to attend, Greenberg said.

Then, provide an update since your application was submitted that demonstrates what you could bring to the table. For example, perhaps you took classes or completed a research project that helped solidify why that school is now an even better fit.
“You don’t want to rehash stuff; you want to bring in new information,” Greenberg said.

Factor in financial aid

Also consider the amount of aid available. Some financial aid is awarded on a first-come, first-served basis, or from programs with limited funds. Students who were admitted in the first round tend to have first dibs on grants and other forms of aid.
“Waitlist students get last dibs on financial aid,” Greenberg cautioned. That may be the most important consideration, after all.
Most college-bound students and their parents now say affordability and dealing with the debt burden that often goes hand in hand with a college diploma is their top concern, even over getting into their first-choice school, according to The Princeton Review’s 2023 College Hopes & Worries survey.

Waitlist students get last dibs on financial aid.

Eric Greenberg
president of Greenberg Educational Group

A whopping 98% of families said financial aid would be necessary to pay for college, and 82% said it was “extremely” or “very” necessary, The Princeton Review found.

Key takeaways for future applicants

Finally, the hardest application cycle to date can serve as an important lesson for future applicants, according to Christopher Rim, president and CEO of Command Education. “It’s not just about having top grades and test scores,” he said.
“Decision letters from top schools are a reminder of the importance of crafting a balanced college list, honing their interests to convey a singularity of focus, and starting early in the process.”
Livingston advises high schoolers to take some of the focus off the prestige and name brand and research schools and programs based on other factors such as location, size, areas of study, research opportunities, sports, clubs and campus life.
“Visit schools and talk to current students,” she said. “The key is to make sure you can see yourself at all of those schools.”
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The U.S. government wastes billions of taxpayer dollars every year.
The U.S. has lost almost $2.4 trillion in simple payment errors over the last two decades.
Oversight reports claim that billions more dare being wasted every year on needless and duplicative programs
Wasteful spending by the government can have painful consequences to the health of the economy, according to watchdog groups.

The U.S. government wastes billions of taxpayer dollars every year.
Improper payments, which refer to payments that are made incorrectly by the government, cost the U.S. $247 billion in 2022, according to the Government Accountability Office. The U.S. government has lost almost $2.4 trillion in simple payment errors over the last two decades, by GAO estimates.

“The government has just lost, as if you dropped it on the sidewalk, trillions and trillions of dollars over the last few decades,” said Richard Stern, a budget and spending expert from the Heritage Foundation. “That is money that was stolen from hardworking Americans to just simply get wasted.”
But that’s not all. Oversight reports from nonprofits and lawmakers like Sen. Rand Paul, R-Ky., claim billions more are being wasted every year — from spending $1.7 billion maintaining empty government buildings to accidentally investing $28 million on forest camouflage uniforms to be used in the deserts of Afghanistan.
Duplicated programs are another cause for concern.
“The Government Accountability Office every year issues a report on duplicative and overlapping programs and every year they find more and more of these programs,” according to Tom Schatz, president of Citizens Against Government Waste.
The problems mainly stem from the way our government tries to solve an issue, according to critics.

“In the private sector, if somebody is doing something, they see what they’re trying to do or sell and then determine how to do it and how much it will cost,” Schatz said. “In the federal government, everything is ‘Go spend more money’ and if that doesn’t work, it’s ‘Go spend more money.'”
It’s the job of the GAO to audit and report any wasteful spending by the federal government. But experts argue that it doesn’t influence policy changes in the way that it could or should.
“I think they have enough power, but I don’t think they have enough manpower or resources,” said Elaine Karmarck, a senior fellow at the Brookings Institution.
Nevertheless, wasteful spending by the government can have painful consequences to the health of the economy, according to watchdog groups.
“As the government spends it runs up a deficit,” Stern said. “What happens is, it’s sucking all the oxygen out of the room. It’s destroying investment. It’s mortgaging our futures. It’s slowing our growth. Today, the inflation you’re seeing is a large result of that.”
Watch the video to find out more about why taxes feel so high in the U.S. and why so much taxpayer money gets wasted. More

Tech giant Apple may be looking to get “top of wallet status” with the debut of a new savings account, one expert said.
For savers, it’s yet another sign that it’s time to shop around for the best interest rates.

A person walks out of the Apple Store in Annapolis, Maryland, on February 2, 2023.
Jim Watson | AFP | Getty Images

As the Federal Reserve continues to hike interest rates, some online banks have been jockeying to offer the highest yields on savings.
Now, Apple has entered the competition with a new savings account offering a 4.15% interest rate.

The new offering amplifies the tech giant’s suite of other financial offerings, including Apple Pay, Apple Card and the recent debut of a “buy now, pay later” service, said Ted Rossman, senior industry analyst at Bankrate.
“They’re trying to get that ‘top of mind, top of wallet’ status,” Rossman said.
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Savings interest rates of 4% and above were unheard of as recently as one year ago, he noted.
But that was before the Federal Reserve launched a series of interest rate hikes aimed at tamping down historic high inflation. While those increases have brought higher rates for debts on everything from credit cards to mortgages, they have also sweetened incentives for savers who can now earn more on their cash.

How Apple’s savings account yield stacks up

The highest savings yields in the Bankrate database are now more than 5%, according to Rossman. That includes UFB Direct, which is offering 5.02%.
Apple’s 4.15% savings account now lands in 11th place on Bankrate’s rankings, he said.
Still, Apple may have an advantage when it comes to the top offerings for rates due to its brand recognition, Rossman said.
“At Bankrate, we tend to be fans of anything that gets people saving more and getting better returns,” Rossman said. “This is definitely a big, important, popular company entering this space.”
The savings account provides a “seamless factor” for Apple enthusiasts who are already using the company’s phone, credit card, or buy now, pay later service, he said.
The savings account is intended to be a sidecar to the Apple Card, so daily cash back earnings get deposited there, Rossman noted. Outside funds can also be transferred to the savings account.
Importantly, Apple’s savings account is offered through Goldman Sachs, and funds are insured by the FDIC, or Federal Deposit Insurance Corporation. That means its accounts are generally federally insured for up to $250,000 per depositor. Experts have emphasized that FDIC coverage should be high on savers’ wish lists in light of the recent collapses of Silicon Valley Bank and Signature Bank.
Goldman Sachs has its own high-yield accounts through Marcus, which currently offers a 3.9% rate.

‘Best incentive in years to shop around’

Even as interest rates on savings have kicked up, savers are largely not taking advantage of the higher yields that are now available, Bankrate’s research has found.
A recent survey conducted by the website found just 22% of savers are earning interest rates of 3% or more on their cash.
Savers with accounts at big brick-and-mortar banks are probably earning “next to nothing,” Rossman said. Many people can probably earn a much better return by switching banks, he said.
“There’s definitely the best incentive in years to shop around,” Rossman said.
Many people may find it difficult, however, to find extra cash to sock away when rising rates have made paying debts more expensive and inflation has pushed up prices for everyday items.

For those who are struggling to save, personal finance expert Suze Orman recently told CNBC that it helps to automate your savings. By setting aside money before you see it in your paycheck, “you will find that you do not miss it,” Orman said.
Of note, today’s high rates are not guaranteed to stick around, Rossman noted.
The yields on savings accounts may go down if the Federal Reserve decides to lower interest rates at some point. Other products, including certificates of deposit, or CDs, may allow savers to lock in interest rates for longer time periods, such as one to five years, he said. More

Smart Tax Planning

The deadline for first-quarter estimated tax payments is also April 18, applying to income from self-employment, gig economy work, investments and more.
You may avoid late payment penalties by covering 90% of 2023 taxes or 100% of 2022 levies if your adjusted gross income is $150,000 or less.

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If you’re scrambling to file your taxes, it’s easy to miss another key deadline on April 18: the due date for 2023 first-quarter estimated tax payments.
Income taxes are pay-as-you-go, meaning you must remit taxes throughout the year. While employees contribute through paycheck withholdings, others must pay the IRS quarterly. 

The first estimated tax deadline is April 18, which applies to self-employed or gig economy workers, investors and other filers who expect to owe $1,000 or more in 2023.  

More from Smart Tax Planning:

Here’s a look at more tax-planning news.

“Many taxpayers don’t realize that first quarter payments are due at the same time as their tax return for the prior year,” said Kathy Pickering, chief tax officer for H&R Block.
You may also owe quarterly taxes for retirement income, interest, dividends, capital gains, alimony and rental income to reduce or avoid penalties, according to the IRS.

Many taxpayers don’t realize that first quarter payments are due at the same time as their tax return for the prior year.

Kathy Pickering
Chief tax officer for H&R Block

“Paying quarterly estimated taxes will usually lessen and may even eliminate any penalties,” the IRS said in a news release last week.
However, some filers affected by natural disasters have more time for estimated tax payments, such as eligible filers in Alabama, California and Georgia, according to the agency. You can find a full list of tax relief by location here.

The ‘quick and dirty’ way to avoid late fees

There’s a “quick and dirty” way to bypass late payment penalties, known as the “safe harbor rule,” says Mark Jaeger, vice president of tax operations at TaxAct.
You can avoid late fees by covering 90% of your 2023 taxes or paying 100% of your 2022 bill if your adjusted gross income is $150,000 or less. However, you’ll need 110% of your 2022 bill if you earn more than $150,000.
The late payment penalty is 0.5% of your unpaid balance per month, up to 25%, plus interest. And with higher interest rates, “you definitely don’t want to pay that underpayment penalty,” Jaeger said.
If you’re expecting similar income to last year, you can check your 2022 return for last year’s tax liability and divide that number (or 110% of that number, for high earners) into four quarterly payments. Of course, it’s still possible you’ll have a 2023 tax bill by following this method, depending on your earnings for the year.

Paying online is ‘easiest’ for most filers

While there are several ways to remit quarterly taxes, “paying online is the easiest method for most taxpayers,” Pickering said.
You can use IRS DirectPay or make a payment through your IRS online account, which shows your payment history and other tax details. You can see the full list of payment options here. More