Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
2.55% two yr FDIC bank CD at Edward Jones
Old 03-22-2018, 02:52 PM   #1
Recycles dryer sheets
lwp2017's Avatar
 
Join Date: Feb 2014
Posts: 151
2.55% two yr FDIC bank CD at Edward Jones

Today my Edward Jones broker sold me a one year Wells Fargo $17K CD at 2.15%.
Also a 2 year $50K CD from Morgan Stanley at 2.55%.
Both are FDIC insured.

I asked my credit union to match, their best offer was 1.8%.

Edward Jones, Fidelity, etc are able to get better CD rates for you due to the volume of money they send to the banks.
__________________

lwp2017 is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-22-2018, 03:22 PM   #2
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,686
How are brokered CDs better than short term bonds?
__________________

GrayHare is online now   Reply With Quote
Old 03-22-2018, 03:24 PM   #3
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 363
Quote:
Originally Posted by GrayHare View Post
How are brokered CDs better than short term bonds?
Lower risk.
njhowie is online now   Reply With Quote
Old 03-22-2018, 03:28 PM   #4
Recycles dryer sheets
JohnnyBGoode's Avatar
 
Join Date: Apr 2016
Location: Bay Area
Posts: 140
Yep, I see Fido has the same Wells Fargo 2 year CD available for 2.55% as well as a Morgan Stanley CD for 2.55%. Not sure why one would pick one over the other but you are right in either case they beat Ally Bank's 3-year CD currently at 2.1%.

At the moment I'm not willing to lock in an interest rate for more than 12 months just because I think there is still room to grow, but 2.5%+ sure looks good.
JohnnyBGoode is offline   Reply With Quote
Old 03-22-2018, 03:29 PM   #5
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 1,980
they are brokered CDs. They have different terms than most CDs from the bank directly. So they get better rates. Plus the banks don't have to do the maintaining or selling of the CD.
Likely most major brokers have these.

FDIC insurance
bingybear is offline   Reply With Quote
Old 03-22-2018, 03:51 PM   #6
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,686
Quote:
Originally Posted by njhowie View Post
Lower risk.
Because they are FDIC insured, or for other reasons?
GrayHare is online now   Reply With Quote
Old 03-22-2018, 03:59 PM   #7
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 19,095
Quote:
Originally Posted by GrayHare View Post
Because they are FDIC insured, or for other reasons?
I'm not sure. "Short term bonds" is broad. Treasuries are the same risk as CDs in that the principal and interest is guaranteed by the US government just as CDs are FDIC insured for the same under the $250K limit per bank and account holder.

If you are talking about any other type of bond you have credit risk and default risk.
__________________
Retired since summer 1999.
audreyh1 is online now   Reply With Quote
Old 03-22-2018, 05:09 PM   #8
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 363
Quote:
Originally Posted by JohnnyBGoode View Post
Yep, I see Fido has the same Wells Fargo 2 year CD available for 2.55% as well as a Morgan Stanley CD for 2.55%. Not sure why one would pick one over the other but you are right in either case they beat Ally Bank's 3-year CD currently at 2.1%.
The Wells Fargo pays monthly while the MS is semi-annually.
njhowie is online now   Reply With Quote
Old 03-22-2018, 08:12 PM   #9
Recycles dryer sheets
lwp2017's Avatar
 
Join Date: Feb 2014
Posts: 151
I wanted guaranteed value from the CD.

I bought a tractor with dealer zero interest financing for 4 years. I originally had planned to pay cash, so I used the payment money to buy CDs.

I was able to make a tidy little sum on CD interest.
lwp2017 is offline   Reply With Quote
Old 03-22-2018, 08:31 PM   #10
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 3,581
Quote:
Originally Posted by GrayHare View Post
Because they are FDIC insured, or for other reasons?


I'm thinking because of FDIC and the principle doesn't decline when rates go up so if you have to cash in before they mature you may forfeit some interest but get your principle back. Treasuries will decline in value as rates rise.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 03-23-2018, 05:52 AM   #11
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 363
Quote:
Originally Posted by Jxxx View Post
Greetings forum, I hope my initial post is ok, but I was cruising and found this thread.
I was able to find for my clients 3.6%, and the starting amount doesn't even have to be 50-100k like you see for Big Banks.
Not sure if I should say more - don't want to bet banned for my first post
If you are not advertising/promoting a product, you won't get banned. Worst case, the post would be removed and you'd get a warning. Post it, folks will certainly comment what they think about it, whether good or bad.
njhowie is online now   Reply With Quote
Old 03-23-2018, 06:17 AM   #12
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 44,176
Quote:
Originally Posted by Jxxx View Post
Greetings forum, I hope my initial post is ok, but I was cruising and found this thread.
I was able to find for my clients 3.6%, and the starting amount doesn't even have to be 50-100k like you see for Big Banks.
Not sure if I should say more - don't want to bet banned for my first post
PUBLIC SERVICE ANNOUNCEMENT: Annuity Salesman

From his "About Me":

Quote:
Right now I am offering a rate of 3.6% for a 5 year MYGA which will beat out any CD rate banks can offer you.
(similar to a CD but it's a tax-deferred 5 year annuity)
__________________
Numbers is hard

Charter resident of the lumpen slums of cyberspace

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 03-23-2018, 06:18 AM   #13
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 363
Quote:
Originally Posted by REWahoo View Post
PUBLIC SERVICE ANNOUNCEMENT: Annuity Salesman

From his "About Me":




Thanks!
njhowie is online now   Reply With Quote
Old 03-23-2018, 06:27 AM   #14
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 44,176
Quote:
Originally Posted by Jxxx View Post
Pretty transparent, both within my profile, and this thread. Does it matter my vocation if I share info that is both truthful and may lead to people earning more on their nest-egg?
Using this forum for commercial purposes isn't permitted.

From the Community Rules:

Quote:
...participants may not use the Forum for commercial gain.
__________________
Numbers is hard

Charter resident of the lumpen slums of cyberspace

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 03-23-2018, 06:27 AM   #15
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 363
Quote:
Originally Posted by Jxxx View Post
Pretty transparent, both within my profile, and this thread. Does it matter my vocation if I share info that is both truthful and may lead to people earning more on their nest-egg?
It might be more appropriate on an annuities thread rather than one titled FDIC bank CD.
njhowie is online now   Reply With Quote
Old 03-23-2018, 06:40 AM   #16
Thinks s/he gets paid by the post
 
Join Date: Dec 2014
Posts: 1,980
Quote:
Originally Posted by njhowie View Post
It might be more appropriate on an annuities thread rather than one titled FDIC bank CD.
+1
plus it is not something he only has.... it is what 5 year MYGA is paying now.

Not that it is bad. One just needs to know what they are buying
bingybear is offline   Reply With Quote
Old 03-23-2018, 08:18 AM   #17
Recycles dryer sheets
 
Join Date: May 2013
Location: Sarasota
Posts: 130
Quote:
Originally Posted by lwp2017 View Post
Today my Edward Jones broker sold me a one year Wells Fargo $17K CD at 2.15%.
Also a 2 year $50K CD from Morgan Stanley at 2.55%.
Both are FDIC insured.

I asked my credit union to match, their best offer was 1.8%.

Edward Jones, Fidelity, etc are able to get better CD rates for you due to the volume of money they send to the banks.
Edward Jones broker I would bet that you could save significantly more money by changing brokers to a low cost/do it yourself outfit than getting a slightly better 2 year cd rate while keeping money at EJ. Besides, you can get the same CD at the other guys also. Watch your wallet!! JMHO
__________________
Retired in 2015 at 53
"Things are never as good--or as bad--as they seem."
LiveBelowMeans is offline   Reply With Quote
Old 03-23-2018, 08:27 AM   #18
Thinks s/he gets paid by the post
 
Join Date: Nov 2011
Posts: 2,686
Quote:
Originally Posted by jazz4cash View Post
I'm thinking because of FDIC and the principle doesn't decline when rates go up so if you have to cash in before they mature you may forfeit some interest but get your principle back. Treasuries will decline in value as rates rise.
But like a bond a brokered CD also declines in resale value when rates rise, no?
GrayHare is online now   Reply With Quote
Old 03-23-2018, 09:13 AM   #19
Thinks s/he gets paid by the post
 
Join Date: Aug 2004
Location: Laurel, MD
Posts: 3,581
Quote:
Originally Posted by GrayHare View Post
But like a bond a brokered CD also declines in resale value when rates rise, no?
Yes that is correct. I forgot the question was about brokered CDs.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
jazz4cash is offline   Reply With Quote
Old 03-28-2018, 03:50 AM   #20
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 363
2-year now at 2.6%
__________________

njhowie is online now   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Merrill Lynch or Edward Jones?? rdjrn FIRE and Money 95 07-23-2012 09:09 PM
How Edward Jones advisors are compensated Helen FIRE and Money 3 10-18-2011 11:38 AM
Mom, Edward Jones, and a CIT Bond region2 Other topics 7 08-16-2009 03:55 PM
Things must be slow at Edward Jones... Gonzo Other topics 10 10-04-2006 10:09 AM

» Quick Links

 
All times are GMT -6. The time now is 01:02 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2018, vBulletin Solutions, Inc.