Don’t forget to take advantage of these 4 ‘free money’ benefits, says financial expert

Welcome back to Money Made Easy, where we focus on simple ways to manage your finances and save money. In the latest installment of the series, CNBC Select Contributor and Financial Advisor Kristin O’Keeffe Merrick walks us through her best tips for rethinking how you manage your money in 2023.

Check out the full interview featured on TODAY in the video below and read on for some of Merrick’s best strategies.

Free money isn’t just finding a $10 bill on the sidewalk or getting a birthday card from Grandma. Below are four easy money moves you can make to bank what is essentially “free money,” according to Merrick.

1. Meet your employer’s 401(k) match

Employer-sponsored 401(k)s often offer a company match for employees who contribute a certain amount to the retirement plan. For example, your company may promise to match up to 6% of your salary if you also contribute 6% into your 401(k) — basically doubling what you’re able to put away for retirement.

“If you don’t contribute to your 401(k), then your company does not match and then you miss out on that compensation,” Merrick says.

And don’t forget that your contributions to a 401(k) are tax-free, meaning they reduce how much you owe in taxes.

2. Maximize your credit card rewards

Credit card rewards programs let you earn cash-back (or other perks) on money you were going to spend anyway. For example, with a cash rewards credit card like the Wells Fargo Active Cash^® Card, you can earn 2% cash rewards on all eligible purchases with no annual fee.

Rewards credit cards allow cardholders to earn everything from cash back to points and miles when they spend on the card. Those points and miles can then be redeemed to offset expenses on things like travel, while cash back can lower your credit card bill.

Plus, many of these cards offer a welcome bonus after opening a new account and meeting a minimum spending requirement. For example, the Active Cash Card comes with a welcome bonus of a $200 cash reward after you spend $1,000 in purchases within three months of opening the card.

Merrick adds one caveat with credit cards, and that is to understand what a card could provide for you and whether or not it actually suits your spending habits. You wouldn’t want to get a gas rewards credit card if you barely drive, for example.

And the key to really maximizing your card’s rewards is to make sure you pay off your balance in full and on time each month, otherwise the interest and late fees you would accrue eat away at anything you’d earn. “You should not be using credit cards for points if you carry large balances,” Merrick warns.

3. Open a new checking account with a welcome bonus

“There’s a lot of incentives these days for opening new accounts — there’s actually cash incentives,” Merrick says. “If you’re ready for a new checking account, a good time to switch to another bank is when doing so would give you some free money.”

The accounts below are currently offering new customer bonuses:

Up to $400 bonus offer: PNC Virtual Wallet. Open and use a select new Virtual Wallet.

$200 bonus offer: Chase Total Checking®. Open a Chase Total Checking account and set up direct deposit within 90 days of coupon enrollment. Offer expires 04/19/2023.

4. Transfer your cash to a high-yield savings account

In this rising-rate environment, now is the time to open a high-yield savings account and earn more interest than you would in a traditional savings account. You’re essentially collecting “free” money by parking your cash in a savings account — especially one with an above-average APY.

“I want you to think about, if you’re sitting on cash, where it’s sitting and if it’s earning you money and then maybe being strategic about where that money’s going to go,” Merrick says.

Some of the top high-yield savings accounts, like the ones below, are currently offering 4% APY and higher. If you have idle cash sitting in a traditional savings or checking account, it’s worth moving your money to take advantage of the highest interest rates we’ve seen in decades.

Simple money moves like meeting your company’s 401(k) match, earning rewards on your daily spending with a rewards credit card, opening a checking account with a welcome bonus and transferring your savings to a high-yield account can make your money work harder for you and give you “free” money for the things you were already doing.

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