Ally up to 1.50%

[copyright1997reloaded]

Ally is not even close to Northern Bank Direct, 2.26% APY MM (max $250K): https://www.depositaccounts.com/bank...direct/offers/

[aja8888]

I feel almost as giddy as when rates were at double digits in the early 1980's!

Remember Columbia Savings CD's @ 12%?

[Spock]

Quote:

Originally Posted by njhowie I like CDs, Treasuries (up to maybe 15 months), and munis. You are correct on how I buy in general. I don't have a "formal" ladder, though I do employ a laddering strategy. I don't have any particular maturity or timeframe that I'm targeting, just that I can pick up good yields and ride interest rates higher. My portfolio maturity curve looks like the right half of a bell curve, with the bulk of maturities up to roughly 3 years, a bit less up to 5, a bit less up to 10, and maybe only 5 percent of the value at 10 years or more. I have a set of pre-defined queries on Fidelity's website that I run and browse through to find CDs that are mispriced and pick them up when offered. I don't have any in particular that I'm specifically ever looking for, just that the rates are a good amount better than new issue or others offered for similar maturity.

I haven't played with building queries there.
What filters are you using??

[ShokWaveRider]

State Bank of Texas (SBT) 12month CD is 2.6%

https://www.depositaccounts.com/cd/

[njhowie]

Quote:

Originally Posted by ShokWaveRider State Bank of Texas (SBT) 12month CD is 2.6% https://www.depositaccounts.com/cd/

Maybe if you are willing to go to one of their Texas or Chicago branches to open it. Doesn't appear to be a way to do it online. There isn't even any info about it on their own website.

[njhowie]

Quote:

Originally Posted by Spock I haven't played with building queries there. What filters are you using??

Query capability for the CDs is very basic - just maturity date range, current yield range, current price, coupon, and callability.

I set mine up simply using the current yield range for various ranges, then play with the sort using current yield increasing/decreasing and the maturity date increasing/decreasing browsing the results eyeballing for any that stick out.

This is just for secondary market CDs.

[Spock]

Quote:

Originally Posted by njhowie Query capability for the CDs is very basic - just maturity date range, current yield range, current price, coupon, and callability. I set mine up simply using the current yield range for various ranges, then play with the sort using current yield increasing/decreasing and the maturity date increasing/decreasing browsing the results eyeballing for any that stick out. This is just for secondary market CDs.

Found an article on secondary CDs that had some bookmarklets in the article.
The query can be edited directly in the link, including eh Moody's rating of the issuing bank. (don't mind the rest of the parms... just playing with the query).
https://fixedincome.fidelity.com/ftg...ABLE&sortby=MA

[Sue J]

Quote:

Originally Posted by Lsbcal You guy are so picky. Maybe try VMMXX instead. I think it is at 1.99%.

Yes, with a nice sane $3,000 minimum.

The 5 year PenFed 3% CDs are maturing in Dec 2018. It's been nice while it lasted. The 10 year 5% ones mature in Jan 2021, they deserve a nice hug.

[njhowie]

Quote:

Originally Posted by Spock Found an article on secondary CDs that had some bookmarklets in the article. The query can be edited directly in the link, including eh Moody's rating of the issuing bank. (don't mind the rest of the parms... just playing with the query).

For CDs that isn't the Moody's rating of the issuing bank. It's a parameter used for bond/muni queries. It has no effect for CDs. Make your minmoody, maxmoody, minsandp, maxsandp parameters anything you want - even garbage values it doesn't care - it's ignored for CD retrievals.

[Spock]

Quote:

Originally Posted by njhowie For CDs that isn't the Moody's rating of the issuing bank. It's a parameter used for bond/muni queries. It has no effect for CDs. Make your minmoody, maxmoody, minsandp, maxsandp parameters anything you want - even garbage values it doesn't care - it's ignored for CD retrievals.

Well... as a former software test engineer, thats a sev1 or sev2 defect/bug (and the developer will return it "working as designed" or a "undocumented feature").

[braumeister]

Quote:

Originally Posted by Spock "undocumented feature").

Ooh! Ooh!
Easter eggs!

[jazz4cash]

Quote:

Originally Posted by Sue J Yes, with a nice sane $3,000 minimum. The 5 year PenFed 3% CDs are maturing in Dec 2018. It's been nice while it lasted. The 10 year 5% ones mature in Jan 2021, they deserve a nice hug.

+1
3% for 5 yrs is available now....5% for 10 might be available before Jan 2021, but I see more value at the 3 yrs and under terms.

[Another Reader]

3% for THREE years is available in new issue brokered CD's from multiple banks. That's a non-compounded rate. My finger has been hovering over the trade button for at least a week. Not sure I want to tie money up for three years if interest rates continue to rise.

ETA: I did buy some two year CD's at 2.80 percent. Not a lot, just enough to call it a ladder.

[njhowie]

Quote:

Originally Posted by Another Reader 3% for THREE years is available in new issue brokered CD's from multiple banks. That's a non-compounded rate. My finger has been hovering over the trade button for at least a week. Not sure I want to tie money up for three years if interest rates continue to rise. ETA: I did buy some two year CD's at 2.80 percent. Not a lot, just enough to call it a ladder.

If you are uneasy about 3% for 3 years, then don't lose any sleep over it - just stick to the 2-year at 2.8% - what are we talking about, a difference of $20 on $10,000/year...$40 for the 2 years.

We are likely not at the end of the rate hikes as the next two in September and December are near 100% guaranteed. However, like all things investment oriented, do you require to squeeze the last penny out on every position? At some point the rate hikes will pause/end. As with the current economic cycle, we are certainly much closer to the end at this time. There are economic reasons why rates can only go so high before it does more damage than good, but that's another discussion.

Do what you feel comfortable doing. The 2 and 3 year CDs have been the sweet spot for the past couple months, as after that point, increased yields are difficult to come by with an almost flat yield curve. If you are offered 3% for 3 years or 3.6% for 10 years, which would you take? 3 years is quite enticing. However, what if longer term rates do not go higher and we are approaching the peak, with the next phase taking rates lower once again? Will 5 year CDs go back to 1.5%? 1 year back below 1%? Europe is keeping their short term rate at 0%, Japan is at -0.1% for short-term and 0.0% for their 10-year. US rates cannot go much higher when you couple this with US economic issues.

[Another Reader]

Quote:

Originally Posted by njhowie If you are uneasy about 3% for 3 years, then don't lose any sleep over it - just stick to the 2-year at 2.8% - what are we talking about, a difference of $20 on $10,000/year...$40 for the 2 years. We are likely not at the end of the rate hikes as the next two in September and December are near 100% guaranteed. However, like all things investment oriented, do you require to squeeze the last penny out on every position? At some point the rate hikes will pause/end. As with the current economic cycle, we are certainly much closer to the end at this time. There are economic reasons why rates can only go so high before it does more damage than good, but that's another discussion. Do what you feel comfortable doing. The 2 and 3 year CDs have been the sweet spot for the past couple months, as after that point, increased yields are difficult to come by with an almost flat yield curve. If you are offered 3% for 3 years or 3.6% for 10 years, which would you take? 3 years is quite enticing. However, what if longer term rates do not go higher and we are approaching the peak, with the next phase taking rates lower once again? Will 5 year CDs go back to 1.5%? 1 year back below 1%? Europe is keeping their short term rate at 0%, Japan is at -0.1% for short-term and 0.0% for their 10-year. US rates cannot go much higher when you couple this with US economic issues.

What's implicit in my comments is the premium for tying up my money for an additional year is not high enough to make me jump, although crossing the three percent boundary is pretty exciting after all the years of near zero rates.

Most of the buying is about squeezing out a little extra yield over Fidelity's high ER money market funds on short term money, so you are correct, the 2.8 percent two year is the sweet spot for me.

I won't be buying any long term CD's or treasuries until the yields include a substantial liquidity premium. 30 year CD's at 4 percent? Thanks, I'll pass.

[jazz4cash]

In addition to the sweet spot at 3 yrs and below, I'm looking to simplify/consolidate around the financial providers that i currently do business with. I have been a yield chaser in the past when a few bps were more significant and savings accounts were all at 0. That's another benefit of the current rate environment. I currently have CDs at 5 places which is a PITA but I would do it again. Consolidating around brokered CDs at Fido looks pretty good to me right now.

[njhowie]

Quote:

Originally Posted by jazz4cash Consolidating around brokered CDs at Fido looks pretty good to me right now.

I came to this conclusion about a year ago - it's very flexible and provides a wide universe of choices, especially when it comes to secondary market offerings. Further, with secondary market, because it is a market, it will act irrational at times, offering yields which are out of the normal bounds by a significant amount, both higher and lower. Small retail investors have the ability to take advantage of it by simply putting in a little effort when looking to purchase.

[Dtail]

Quote:

Originally Posted by jazz4cash In addition to the sweet spot at 3 yrs and below, I'm looking to simplify/consolidate around the financial providers that i currently do business with. I have been a yield chaser in the past when a few bps were more significant and savings accounts were all at 0. That's another benefit of the current rate environment. I currently have CDs at 5 places which is a PITA but I would do it again. Consolidating around brokered CDs at Fido looks pretty good to me right now.

Same here. Only have CD's at Fidelity, as I don't have accounts at Vanguard, Schwab, etc. About to move cash from Ally to Fidelity, as the rate is higher at Fidelity and part of the consolidation concept.

[njhowie]

Quote:

Originally Posted by Another Reader Most of the buying is about squeezing out a little extra yield over Fidelity's high ER money market funds on short term money, so you are correct, the 2.8 percent two year is the sweet spot for me.

Just FYI, on Friday one of the CDs I purchased secondary market through Fidelity was Ally 4/13/2020 maturity for 2.965% (after commission).

[jazz4cash]

So that's 2.965 for a 22 month CD from a well known entity....pretty sweet.