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2.0% 5-year CD - Can I do better?
10-09-2013, 05:24 PM
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#1
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Dryer sheet wannabe
Join Date: Apr 2013
Posts: 13
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2.0% 5-year CD - Can I do better?
I am looking to put about $100,000 into a CD. I have found the following deal at State Farm Bank:
Term: 5-Year
Interest Rate: 1.98%
APY: 2.0%
Early withdrawal penalty: 180 days
I also see that PenFed has a 2.02% rate, but the early withdrawal penalty is 365 days.
Does anyone know of a better deal?
Thanks very much,
Mark
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10-09-2013, 05:52 PM
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#2
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Thinks s/he gets paid by the post
Join Date: Mar 2013
Location: Southern California
Posts: 3,999
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That looks like a pretty good deal. The only other option might be Ally Bank, which would pay 1.5% but would only hit you with a 60 day penalty for early withdrawal, so if you think rates are likely to go up in the next year or so, you would have very little penalty for pulling it out early. At a 180 day penalty you might be inclined to leave it in even if rates go up. But if you're comfortable locking it in for five years, that looks like a very competitive rate.
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10-09-2013, 05:57 PM
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#3
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Recycles dryer sheets
Join Date: Aug 2006
Posts: 151
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info seeker posted this recently:
If you are a Navy Federal Credit Union member.....and have been llooking for a good rate on a 12 month CD they have a special offer going on right now. ( $50-$3000 CD, 3% APY) Only downside for you might be that you have to have a checking account and direct deposit with them. Just thought I'd pass along this info, as I only see it advertised at their website.
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10-09-2013, 06:27 PM
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#4
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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I bought a 5 year non redeemable GIC last week for 3%. However, since this was from Scotiabank in Canada, it won't help you. 
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10-10-2013, 05:22 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Mar 2006
Location: Houston
Posts: 4,337
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I'm getting 1% on 2 yr brokered CDs. There's no early redemption option not involving my death so if rates go up I have to hold until maturity or sell.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
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10-10-2013, 05:46 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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In a similar vein you can get 3% 5 year savings bonds in the UK.
Top 10 Five Year Fixed Rate Bonds UK - Best 5 Yr Savings Bond
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
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10-10-2013, 06:30 AM
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#7
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Thinks s/he gets paid by the post
Join Date: Jan 2011
Location: Fair Lawn
Posts: 2,958
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Sorry for deflecting this thread's direction, but just curious: can a non-citizen buy CD's or another country's savings bonds?
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10-10-2013, 06:37 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Feb 2006
Posts: 4,872
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 Quote:
Originally Posted by mystang52
Sorry for deflecting this thread's direction, but just curious: can a non-citizen buy CD's or another country's savings bonds?
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I think it would be better to ask if a non-resident can buy them rather than a non citizen and I think the answer is basically no unless they are specifically set up for cross border selling....like the Iceland banks were......
__________________
“So we beat on, boats against the current, borne back ceaselessly into the past.”
Current AA: 75% Equity Funds / 15% Bonds / 5% Stable Value /2% Cash / 3% TIAA Traditional
Retired Mar 2014 at age 52, target WR: 0.0%,
Income from pension and rent
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10-10-2013, 09:52 AM
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#9
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Full time employment: Posting here.
Join Date: May 2005
Location: Atlanta suburbs
Posts: 898
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Quote:
Originally Posted by mystang52
Sorry for deflecting this thread's direction, but just curious: can a non-citizen buy CD's or another country's savings bonds?
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All depends on country.
But easier to buy a fund which invests in such things, like GIM (which is my major global bond holding)
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10-11-2013, 02:16 PM
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#10
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Recycles dryer sheets
Join Date: Oct 2009
Posts: 246
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2% seems to be right in line with what I've found as well.
State Bank of India
Rates as of Oct. 9th
5 year
2.10%$5,0005 years and above
EverBank
Rates as of Oct. 9th5 year1.99%2.01%$1,500Yield Pledge CDBarclays
Rates as of Oct. 9th5 year1.98%2.00%$060 Month Online CDState Farm Bank (Rate in NY)
Rates as of Oct. 9th5 year1.98%2.00%$50060 Month CD - Less than $100,000 - Rate collected within: 10025 (NY)
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10-11-2013, 02:56 PM
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#11
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Thinks s/he gets paid by the post
Join Date: Jun 2006
Location: Central, Ohio, USA
Posts: 2,635
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Bought 2.5% for 6 years a couple of weeks ago (now 2.4% - changes are posted on Thursday's) at Wright-Patt CU NCUA insured. Pentagon FCU has 5 and 7 years at 2.02% currently. Vanguard had some 3.25% 10 year FDIC insured non-callable CD's too.
__________________
Vietnam Veteran, CW4 USA, Retired 1979
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10-11-2013, 03:53 PM
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#12
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Administrator
Join Date: Jul 2005
Location: N. Yorkshire
Posts: 34,122
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Quote:
Originally Posted by mystang52
Sorry for deflecting this thread's direction, but just curious: can a non-citizen buy CD's or another country's savings bonds?
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I've looked at these in the past and always found that you have to be a permanent resident.
I had a quick look at nun's link and the CD he mentioned requires you to be a UK resident. (see screen shot attached)
__________________
Retired in Jan, 2010 at 55, moved to England in May 2016
Enough private pension and SS income to cover all needs
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10-11-2013, 04:01 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Posts: 11,401
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Apparently you don't have to be a permanent resident to buy them in Canada, but there will be tax withholding unless it's a 5 year non redeemable GIC.
Fiscal Agents - Ask An Expert - Guaranteed Investment Certificates
However, the rate that I got last week was a promotion, which has now ended.
The other issue is currency exchange risk.
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