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Vanguard just announced a new round of expense ratio drops spanning 53 funds (roughly 25% of them), totaling close to $250 million in fee reductions in 2026. See their press release and full list of changes. This comes almost exactly a year after their February 2025 cuts which spanned 87 funds with an estimated $350 in fee reductions that year.

Over the past two years, Vanguard has reduced fees on most of its fund lineup totaling nearly $600 million in savings for investors—Vanguard’s largest-ever two-year combined cost reduction. Vanguard’s product lineup across all asset classes and styles now has an average expense ratio of 0.06%, reinforcing the firm’s longstanding cost leadership position. These consistently low costs help investors keep more of their returns, contributing to stronger long-term performance.

Additional media coverage at the Wall Street Journal (gift article) and Morningstar.

At this point, most of their expense ratios are so low on their big funds that most individual investors won’t notice much of a difference. The largest index funds VTI, VXUS, BND are unchanged. Target Retirement funds are also unchanged. However, I do believe it is an important indicator that Vanguard is still lowering costs as their assets under management continue to grow.

As an individual investor, it’s also important to remember that costs matter and those costs directly affect performance. Jack Bogle was right in his past skepticism of ETFs in that over time, the group has grown to include a lot of complex, expensive options. While the overall, asset-weighted average expense ratio for ETFs has declined over time, the average fee of newly launched ETFs has actually increased. Be wary of all those new, fancy ETFs that make attractive promises like limited downside and extremely high dividend income. This “Boomer candy” almost always comes with a higher expense ratio, and I am willing to bet it will also end up with lower long-term returns. New tricks, same old story.

Personally, I note that the Vanguard 0–3 Month Treasury Bill ETF (VBIL) lowered its expense ratio from 0.07% to 0.06%. My current go-to is iShares 0-3 Month Treasury Bond ETF (SGOV), which is at 0.09%.

The 30-day median bid/ask spread on VBIL is now 0.01% of market price, meaning its liquidity is now basically on the same level as SGOV (also at 0.01%). I will probably start using VBIL instead of SGOV for the times when I want a short-term cash equivalent in a brokerage account. 0.03% is a small difference, but I gotta keep incentivizing those lower costs. Long live the Vanguard Effect!

Updated for 2026. As the brokerage 1099 forms for the 2025 Tax Year are coming out, here is a quick reminder for those subject to state and/or local income taxes. If you earned interest from a money market fund, a significant portion of this interest may have come from “US Government Obligations” like Treasury bills and bonds, which are generally exempt from state and local income taxes. However, in order to claim this exemption, you’ll likely have to manually enter it on your tax return after digging up a few extra details.

(Note: California, Connecticut, and New York exempt dividend income only when the mutual fund has met certain minimum investments in U.S. government securities. They require that 50% of a mutual fund’s assets at each quarter-end within the tax year consist of U.S. government obligations.)

Fidelity has released 2025 Percentage of Income from U.S. Government Securities [pdf]. Here are the results for the most popular core Fidelity money market funds:

• Fidelity® Treasury Only Money Market Fund (FDLXX, CUSIP 31617H300) – 98.67%.
• Fidelity® Government Money Market Fund (SPAXX, CUSIP 31617H102) – 50.90%. *Did not meet the minimum investment in U.S. Government securities required to exempt the distribution from tax in California, Connecticut, and New York.
• Fidelity® Government Cash Reserves (FDRXX, CUSIP 316067107) – 52.17%. *Did not meet the minimum investment in U.S. Government securities required to exempt the distribution from tax in California, Connecticut, and New York.
• Fidelity® Treasury Money Market Fund* (FZFXX, CUSIP 316341304) – 61.52%. *Did not meet the minimum investment in U.S. Government securities required to exempt the distribution from tax in California, Connecticut, and New York.

It is disappointing that SPAXX as a default cash sweep did not meet the requirements to exempt any of their interest from state income tax in California, Connecticut, and New York. They must have missed the 50% minimum cut-off in one of the four quarters of 2025.

This is why I mostly own FDLXX as my “pseudo-core” money market fund via automated recurring purchases. For more information on this “hack”, see my post Fidelity Treasury Only Money Market (FDLXX) as Fidelity Core Position Workaround.

To find the portion of Fidelity dividends that may be exempt from your state income tax, multiply the amount of “ordinary dividends” reported in Box 1a of your Form 1099-DIV by the percentage listed in the PDF. For example, if you earned $1,000 in total interest from Fidelity Treasury Only Money Market Fund (FDLXX) in 2025, then $986.70 could possibly be exempt from state and local income taxes. If your marginal state income tax rate was 10% that would be a ~$99 tax savings for every $1,000 in total interest earned.

On a net after-tax basis, folks with a ~10% state income tax rate will likely find that FDLXX earns more interest than the default core holdings of SPAXX/FZFXX, even though the gross yield of SPAXX/FZFXX is higher than that of FDLXX.

To obtain these tax savings, you’ll have to manually adjust your state/local income tax return. I don’t believe that TurboTax, H&R Block, and other tax software will do this automatically for you, as they won’t have the required information on their own. (I’m also not sure if they ask about it in their interview process.) If you use an accountant, you should also double-check to make sure they use this information. Here is some information on how to enter this into a previous version of TurboTax:

• When you are entering the 1099-DIV Box 1a, 1b, and 2a – click the “My form has info in other boxes (this is uncommon)” checkbox.
• Next, click on the option “A portion of these dividends is U.S. Government interest.”
• On the next screen enter the Government interest amount. This will be subtracted from your state return.

Standard disclosure: Check with your state or local tax office or with your tax advisor to determine whether your state allows you to exclude some or all of the income you earn from mutual funds that invest in U.S. government obligations.

[Image credit – Tax Foundation]

Updated with new 5% deposit bonus. Crypto exchange OKX is currently offering a few different bonuses which may be stackable. Details below.

1. New customers: $200 referral bonus Should auto-populate the promo code 79795662. That’s mine, thanks if you use it! Details below.
2. New and existing customers: New 5% Deposit Match for all deposits of at least $1,000 (max $250 on $50k deposit). 24 week hold period to get full deposit match, paid out every 14 days. Details below. If you use your deposits to hold USDG, then you will stack on top of the 5% APY earned on USDG.
3. New and existing customers: 5% APY on USDG (stablecoin)
4. New and existing customers: Free crypto via X Drops Club. Must maintain a $1,000+ portfolio of crypto (cash, USDC, USDT and USDG stablecoin does not count). BTC, ETH do count. You must also “join” each airdrop before the window closes. More details here and here.

1. $200 New customer bonus details. For new OKX customers:

• Sign up via special referral link. I think they allow either smartphone or browser sign-up, but identity verification may be easier on a smartphone. That’s my referral link, which should auto-populate with the promo code 79795662. Thanks if you use it!
• Complete identity verification (driver’s license and smartphone selfie).
• $200 BTC Bonus if you deposit $200+ of either cash (link bank account via Plaid) or crypto within 30 days, trade that $200 or more of crypto (can purchase stablecoin like USDG), and hold the assets for at least 30 days within a 90-day period. After 90 days, the bonus will be tradable and withdrawable.
• Stablecoins such as USDG, USDT, and USDC qualify for deposit, trading volume, and AUM holding requirements.

2. New 5% Deposit Match

• OKX is running a 5% bonus match on new deposits (minimum $1,000 and maximum $50,000). You must hold for 24 weeks to get the full 5%, but it is paid out gradually every 14 days (2 weeks). You still keep liquidity and can withdraw your deposits at any time, but you lose the match.
• Must opt in *first* by February 17, 2026, and then make the deposit.
• Full terms.
• This works out to over 10% annualized, and if you hold USDG that also earns 5% APY at OKX.

3. OKX is also paying 5% APY on USDG deposits currently. USDG stablecoin is not FDIC-insured. They claim to be fully backed by US Treasury Bills with monthly audits and regulated by Singapore, but I still plan to withdraw my USDG out into a real FDIC-insured bank as soon as the holding period is over. This is a short-term play for me; I’m in for the bonus duration and then I’m out.

4. X Drops Club is a recurring rewards program with automatic daily drops that scale with a user’s eligible crypto balance. Must maintain $1,000+ in eligible crypto assets (excluding fiat, USDC, USDT, and USDG).

Please perform your own due diligence on crypto apps. They are not regulated on the same level as bank account or brokerage accounts. I usually don’t like to keep significant funds in there any longer than is required for the bonus to clear; in this case the reward/risk ratio is acceptable to me. Here is the OKX Wikipedia page and they are profiled in the Forbes article “The World’s Most Trustworthy Crypto Exchanges”. (Also see: Kraken and Gemini bonuses.)

Note: OKX does not allow customers to be individuals residing in New York, Texas, American Samoa, Guam, the Northern Mariana Islands, and the US Virgin Islands.

Updated offer for 2026. May sure you enroll first! Marcus by Goldman Sachs is offering a up to a $1,500 deposit bonus (starting at $100 bonus on $10,000 in new funds) into their online savings account within 10 calendar days of enrollment at this special offer page. Valid for both new and existing customers. You must enroll first by 3/11/26 and maintain the new funds for 90 days (after the end of the 10-day funding period, so possibly up to 100 days total). You then get the bonus after another 14 days. No offer or promo code required. They have done a similar promotion in past years (and it’s nice that you can keep doing it). Here are the tiers:

After enrolling, you must deposit $10,000 or more in new funds from an external account into your Account within 10 calendar days of enrollment (the “Funding Period”). The Account balance plus a minimum of $10,000 in new funds (the “Required Dollar Amount”) must be maintained in your Account for 90 consecutive days from the end of the Funding Period. The Account balance is based on the starting current balance reflected on your account at 12 am ET the day you enroll. Once the Funding Period has ended, your Account balance may not drop below the Required Dollar Amount at any point until after the 90 consecutive days have passed. You may make multiple deposits within the Funding Period to reach the Required Dollar Amount. Internal transfers do not count for purposes of this Offer.

Important disclosures: Enroll your Online Savings Account in the Offer, then deposit (within 10 calendar days of enrollment) and maintain at least $10,000 (for $100 bonus), $50,000 (for $750 bonus), or $100,000 (for $1,500 bonus) of New Funds, plus your balances in your enrolled account and across all Marcus accounts as of 6:00 pm ET on 1/27/26, for 90 days after the 10-day Funding Period. Withdrawals made by you or a joint owner while enrolled, including CD maturities to non-Marcus accounts or CD early withdrawals, may result in a lower bonus or losing eligibility, depending on your balances.

New customer referral offer. If you don’t have a Marcus account yet, if you open with a Marcus referral link from an existing customer, you will a small 0.25% bonus (it keeps shrinking!). That’s my referral link, thanks if you use it! I’d open and get the referral offer first, and then later enroll in this $100 offer as an existing customer.

Bonus math. Here’s how it works out for each tier:

• $100 is a 1% bonus on $10,000 if you keep it there for 90 days, which makes it the equivalent of ~4% APY annualized.
• $750 is a 1.5% bonus on $50,000 if you keep it there for 90 days, which makes it the equivalent of ~6% APY annualized.
• $1,500 is a 1.5% bonus on $100,000 if you keep it there for 90 days, which makes it the equivalent of ~6% APY annualized.

The bonus is on top of the standard interest rate, currently 3.65% APY as of 1/29/2026. Compare with my latest update of best interest rates. I have gotten a similar Marcus bonus in the past with no issues. Make sure you enroll at the link above first before transferring in your new funds.

Offer is back, updated details, expires soon. American Express is again promoting their Rewards Checking Account with a new $250 direct deposit bonus. The bonus requirements are pretty straightforward:

• Open your first American Express Rewards Checking Account in your name by 1/31/2026,
• Receive a total of $5,000 or more of Qualifying Direct Deposit(s) within 90 days of account opening.
• After you have completed the above qualifying criteria, American Express will deposit the Welcome Bonus into your Rewards Checking Account within 8-12 weeks.

This bonus is targeted for existing consumer credit cardholders, and possibly savings accountholders:

Who is eligible to apply for an American Express® Rewards Checking account?

Applying for an American Express Rewards Checking account can be completed in minutes. We are currently accepting applications from Card Members with a U.S. Basic Consumer Card issued by American Express National Bank (AENB) with at least 5 days tenure. We may also accept applications from Additional Card Members on a U.S. Basic Consumer Card issued by AENB, Customers with an existing High Yield Savings Account and CD with at least 5 days of tenure who are not existing US Basic Card Members.

Submitted applications will be reviewed promptly with decisions that can be provided within minutes.

If you log into your personal credit card account, the application is mostly auto-filled and just takes a few clicks. There is no hard credit check.

Here are some quick highlights about the Rewards Checking account:

• No monthly fees, and no minimum balance requirements.
• 1.00% APY (as of 1/29/26)
• Earn 1 Membership Rewards® point for every $2 of eligible Debit Card purchases. You can combine these points for redemption using your other AmEx cards.
• Unlimited fee-free ATM withdrawals at over 37,000 MoneyPass® ATM locations nationwide.
• Mobile check deposit is available.
• Free paper checks are not included, but you can purchase them at additional cost.

From the full terms and conditions:

A Qualifying Direct Deposit is a single ACH transfer from an employer or the government for a paycheck, pension, government benefit (such as Social Security), or tax refund. Qualifying Direct Deposit(s) totaling at least $5,000 or more are required to qualify for this offer. The following are not Qualifying Direct Deposits: person to person transfers (P2P) such as money transfer apps, deposit account to deposit account transfers (for example, from a checking account to another checking account or from a savings account to a checking account), deposits or ACH transfers not from an employer or the government (for example, online transfers or bank transfers), internal transfers from your American Express® Savings account, deposits made via check, and Membership Rewards® points redemption for deposits.

Fixed for 2026. I initially wrote this calculator in 2007. Hey, at least you know it wasn’t AI! Some of you may be wondering how well your specific portfolio performed last year (or over any specific period of time). Let’s say you started the year with $10,000 and put in another $5,000 through 10 different deposits spaced throughout the year, and ended up with $16,000. What was your rate of return? Your main goal is simply to separate the effect of new deposits (or withdrawals) and your actual return from investments.

Figuring out your exact personal rate of return requires you to know the exact dates of all your deposits and withdrawals, along with a financial calculator or spreadsheet program with an IRR function (example here). However, for a quick and simple estimate of your returns, try this calculator instead:

Instructions

1. Get your initial balance. This is probably from your brokerage statements. Try January of last year.
2. Tally up any deposits or withdrawals. For example, let’s say you know you put $3,000 in your Roth IRA and also 5% of your $40,000 salary into a 401(k). That would be $3,000 + $2,000 = $5,000. That’s it, you don’t need to worry about looking up the specific dates and amounts.
3. Get your final balance. Your December statement is probably available already.
4. Find the time elapsed (in years) between your initial and final balances.
5. Hit Calculate. An estimate of your annualized return is instantly given.

How Accurate Is This Estimate?
The calculator assumes that the inflows and outflows are spread evenly around the middle of the year. I originally saw this method in the book The Four Pillars of Investing (review). However, unless the deposits and withdrawals are very large as compared to the initial balance, the estimates are actually pretty good.

For example, let’s say that you start with $100,000 on 1/1/2025, and end up with $120,000 on 1/1/2026. If you had net deposits of $10,000 during the year, the calculator above would estimate your return at 9.52%. If the $10,000 was actually deposited all at once on one of these specific days, you would get the following exact returns:

Also check out the rest of my Tools and Calculators.