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5 year CD with 3.15% rate?
04-20-2018, 08:03 AM
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#1
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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5 year CD with 3.15% rate?
Anyone see anything higher? This is the offer I am getting from northwest federal credit union. Early withdrawal penalty is a year of interest.
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04-20-2018, 08:41 AM
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#2
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Posts: 11,701
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Coastal Federal Credit Union (NC) has a 39 mo. at %3.00. Same 12 month interest penalty.
The shorter term may make it slightly more advantageous.
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04-20-2018, 10:02 AM
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#3
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Full time employment: Posting here.
Join Date: Oct 2014
Location: Tucson
Posts: 796
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I have seen brokered CDs at 3.3%, but the cost had a premium (in the neighborhood of $1025 for a $1000 bond)
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04-20-2018, 02:18 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: Jan 2018
Location: Tampa
Posts: 11,196
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Fidelity has a new issue call protected brokered 5 yr CD at 3.05%.
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TGIM
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04-20-2018, 02:26 PM
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#5
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 1,608
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I'll be very interested toward the end of the year when my PenFed CD's mature. It's good to follow where the rates are going.
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04-20-2018, 03:40 PM
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#6
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Thinks s/he gets paid by the post
Join Date: Jun 2004
Location: W Wash
Posts: 1,643
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Without stretching to 5 years you get 2.0% 6 mo treasury zeros in current offering--funds April 26, 5 yr Zero at 2.74, settles 4/30. At Fido, no cost to buy, $1/bond to sell and no lost of interest.
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04-20-2018, 07:14 PM
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#7
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Yesterday I purchased 3 year 5 month (9/28/2021) @ 3.11%.
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05-26-2018, 02:16 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Might we be approaching peak rates for this cycle?
Treasury yields have been hammered over the past 2 days. 1-year (and shorter) treasury yields had been running ahead of equivalent maturity CDs. Yesterday, the 1-year was at 2.30%, same as 1-year CDs.
Federal Reserve meeting minutes from Wednesday had some of the talking heads commenting that they were surprised with what seemed to suggest that we may get the 2 or 3 more rate hikes this year, but that might be the end of it. I may nibble on some 3.25% 5-years next week, just to have in my portfolio, in case we are approaching the peak.
I certainly hope we aren't near the peak, but want to be sure I have some longer-term money taking advantage of whatever the peak rates turn out to be.
Beyond 5 years, forget it - rate differential still doesn't justify it.
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05-26-2018, 08:31 AM
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#9
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
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If you live in Arizona, Pinnacle Bank is offering 3.25 percent for five years. Looks like I can arbitrage my 30 year, 3.125 percent mortgage with CD's soon...
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05-26-2018, 09:20 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,134
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Given that inflation is a bit over 2% so far, I don't see how see can be near a peak in the longer term CDs. Well, I certainly hope not. But, so far the War on Savers is still a losing battle for many of us.
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Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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05-26-2018, 09:59 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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I still say we are headed for a rate inversion. We are moving closer and closer to it now.
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05-26-2018, 10:28 AM
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#12
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,196
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Quote:
Originally Posted by Freedom56
I still say we are headed for a rate inversion. We are moving closer and closer to it now.
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Isn't the 2/10 year spread around the same now as the beginning of the year(~50bps) ?
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TGIM
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05-26-2018, 01:08 PM
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#13
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Quote:
Originally Posted by Dtail
Isn't the 2/10 year spread around the same now as the beginning of the year(~50bps) ?
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Personally, I'm more interested in the 5/10/30 year spreads and they are pathetic.
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05-29-2018, 11:12 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Quote:
Originally Posted by Chuckanut
Given that inflation is a bit over 2% so far, I don't see how see can be near a peak in the longer term CDs. Well, I certainly hope not. But, so far the War on Savers is still a losing battle for many of us.
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Treasury yields are cratering today.
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05-29-2018, 12:52 PM
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#15
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,196
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Quote:
Originally Posted by njhowie
Treasury yields are cratering today.
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So are we going to hit the inversion 2/10 yr level soon?
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TGIM
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05-29-2018, 01:21 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Quote:
Originally Posted by Dtail
So are we going to hit the inversion 2/10 yr level soon?
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Possibly towards year end.
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05-30-2018, 01:56 PM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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No idea whether we are topping out on rates. I kind of doubt it, but it's worth remembering that we only know in hindsight. That said, I find retail cds with a 3 handle and a modest early surrender penalty attractive enough to jump on. Worst case scenario is rates spike and I surrender and reinvest.
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"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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