Published on January 10th, 2018 | by William Charles62
Predictions For 2018: Savings Hit 2% APY, 2%+ Cashback Cards Will Disappear, Negative Companion Pass Changes & More
Every year I like to make a list of predictions for the upcoming year, we are getting into the swing of things for January so I thought it was a good time to finalize my predictions for 2018. You can see the predictions I and other sites made for 2017 here. You can also see a rating of my predictions and other sites predictions for 2017 here.
Other Sites Predictions
Below is a list of other sites that have made predictions for 2018 in this space. If you’re a blogger and have made some predictions, let us know in the comments so I can add it here. This list is oldest to newest.
Best Basic Savings Rates Will Hit 2% APY
This one should be fairly self explanatory but I think the best savings account with no requirements will be over 2% APY at years end. This doesn’t take into account rewards accounts that are already at up to 5%. The current highest rate is 1.65% but that requires a $50,000 balance. The highest without a balance requirement is 1.6% so I’m predicting an extra 0.4%, although I think that would be on the lower side of the movement we see. This might make things like balance transfers and 0% introductory APR offers more attractive as well.
2%+ Credit Cards Will Be A Thing Of The Past
Believe it or not I wrote this before the USAA Limitless and JCB cards were discontinued. But I don’t think offering 2%+ cash back on all purchases is sustainable long term (when I say this I’m talking about cards that earn 2.01% cash back or more, not cards that earn at the 2% level). Because those two are already out, my prediction is really that the Alliant 3%/2.5% card will be no more. The card was launched in March and I think they will see a lot of cardholders cancel after the first year, the cardholders that keep the card will be big spenders that are unprofitable for Alliant causing them to rethink this strategy. I’d say the card will likely be changed by June or July.
Southwest Will Announced Negative Changes To Companion Pass For 2019
I think the companion pass is just too valuable for Southwest to keep offering, especially when you can effectively get it with two credit card applications. The pass will only get more valuable when Southwest adds service to Hawaii. My guess would be that the amount of points required will increase, credit card sign up bonus points won’t count or some other negative change will occur. I think 2018 will just see an announcement made that qualification for the pass will change for the 2019 year.
Mobile Wallets Will Dominate
In 2017 we saw some promotions for mobile wallets like Samsung Pay and more recently Chase Pay. This area is just getting warmed up, expect to see all of these companies spend a significant amount to try and grab market share as spend on mobile wallets skyrockets. I made a similar prediction last year, but this year it’s really going to kick up a notch.
I’d love for readers to tell me what their thoughts of my predictions are in the comments. I’d also love to read your own predictions for 2018.