Best CD & MM Rates Thread 2018 Archive

[Huston55]

Because I don't have to pay state taxes on a taxable account and because treasuries are lower risk than even prime money market paper. Although I agree that risk seems small right now.

Also, most of my money is at Fido with their outrageous ER's on their money market accounts.

FZDXX is currently 1.95% yield, net of expenses.

 

[dvalley]

So if I were to switch-to/buy VMMXX using the money in VMFXX (settlement fund), do I lose out on this month's VMFXX's interest?

Similarly if I move the money from the Discover savings account (compounded daily, paid monthly) today into VMMXX do I lose the entire Sep accrued interest or just the days the money's not in the account?

 

[audreyh1]

So if I were to switch-to/buy VMMXX using the money in VMFXX (settlement fund), do I lose out on this month's VMFXX's interest?

Similarly if I move the money from the Discover savings account (compounded daily, paid monthly) today into VMMXX do I lose the entire Sep accrued interest or just the days the money's not in the account?

No it’s all accrued daily.

 

[pb4uski]

^^^ Right.

 

[Another Reader]

FZDXX invests in 40 percent commercial paper. It requires $100k initial investment, which I could do, but prefer not to. The current reduced ER with waiver is 0.3 percent. I would have to pay state tax in the taxable account. I'll stick with treasuries for now.

ETA: ER on VMMXX is 0.16 percent.

 

[Ready-4-ER-at-14]

For those of you who mention great deals found through a broker could you also please provide the cusip number if it is availabl?


I am especially looking for secondary longer term offerings at lower yields with great discounts on purchase in 5 to 10k amounts in the next week or so.

Thanks!

 

[Huston55]

FZDXX invests in 40 percent commercial paper. It requires $100k initial investment, which I could do, but prefer not to. The current reduced ER with waiver is 0.3 percent. I would have to pay state tax in the taxable account. I'll stick with treasuries for now.

ETA: ER on VMMXX is 0.16 percent.

Understand; not trying to convince you, just listing facts. Regarding the $100k initial investment, as pointed out in an earlier thread, after opening the position with $100k, the balance can go well below that & still earn the same rate. And, all the 7-day yields for these funds are ‘net of yield’ so, that’s already baked into the yields quoted above.

 

[Helena]

.

I put one of my IRAs into a five year variable CD I posted about here previously.

The floor base rate is 3% and that rate wiill increase with any increase in the fed fund rate which will probably go up .25 Wednesday. If so, my interest rate automatically goes up to 3.25% beginning in October. Experts say the Fed will probably increase the rate again several more times in the next year or so.

.

 

[njhowie]

For those of you who mention great deals found through a broker could you also please provide the cusip number if it is availabl?

I am especially looking for secondary longer term offerings at lower yields with great discounts on purchase in 5 to 10k amounts in the next week or so.

Thanks!

Can I ask what your objective is in doing this as opposed to simply looking for the highest yield to maturity, whether new issue or secondary market?

FYI, there is a HSBC 4% 13-year new issue at Fidelity and Merrill (likely others as well). At Merrill, the cusip is 40434YQ59. At Fidelity, the temporary cusip they've assigned to it is DSI9K4485. It is callable, but then so are any of the new issues longer than 10 years at this time. The chances are that they won't be called - unless you believe that going forward long term interest rates may go lower. It seems fairly obvious that the reason they are offering 4% for 13 years right now is because they believe rates are likely to go higher.

If you're looking to pick up deals on secondary market "offerings", you'll likely not be successful if you're looking for folks to post them here to alert you. The best deals generally pop up in small lots and by the time anyone could come here to post about it, and you see the post, it would likely be gone. Folks watch the CD inventory for when the deals pop up (I certainly do) and if you're not ready to grab it when you see it, if it is really a bargain, it will be gone in under a minute.

As far as long term bargains, over the past few weeks, I haven't seen any secondary market bargains on longer-term CDs. Fidelity does not offer anything longer than 10 years in their secondary market inventory. Etrade offers secondary market CDs beyond 10 years, but I closed my account earlier this year, so haven't seen their inventory in some time. For 10-year secondary market at Fidelity, just in the past week the yields have poked back above 3.7% after maxing out in the 3.6% range for the past month or so.

 

[Golden sunsets]

I just successfully funded the NASA FCU 15 month CD at 3.25%. I must say I am impressed with the processing time, customer service, on-line experience and up to date technology NASA uses. Thanks to whoever posted this deal. I was unaware of the offer until that message was posted.

 

[jazz4cash]

.

I put one of my IRAs into a five year variable CD I posted about here previously.

The floor base rate is 3% and that rate wiill increase with any increase in the fed fund rate which will probably go up .25 Wednesday. If so, my interest rate automatically goes up to 3.25% beginning in October. Experts say the Fed will probably increase the rate again several more times in the next year or so.

.

I really like the way that CD works, but I like the 40 month tem at 2.85 base rate better than the 5 yr at 3.0. The other variable rate CDs I've seen only adjust on the anniversary of the CD or you get to bump up once or twice during the term. I am not eligible anyway, so.....

 

[dvalley]

No it’s all accrued daily.

^^^ Right.

Thanks! I knew it was accrued daily but I wasn't sure if there was a catch like the money had to be there for the entire month to get the payout. Sorta like the typical corporate annual bonuses lol

 

[audreyh1]

Thanks! I knew it was accrued daily but I wasn't sure if there was a catch like the money had to be there for the entire month to get the payout. Sorta like the typical corporate annual bonuses lol

No such catch.

 

[Helena]

I just successfully funded the NASA FCU 15 month CD at 3.25%. I must say I am impressed with the processing time, customer service, on-line experience and up to date technology NASA uses. Thanks to whoever posted this deal. I was unaware of the offer until that message was posted.

Odd... just now when I tried to access nasafcu.com on my mobile phone, I get a warning "your connection is not private." I tried going through Google search to get there and received the same warning.

I remember checking into that NASA FCU months ago. I am not eligible because membership is too restricted. Ironic, because my brother is a 42 year retired NASA scientist. He is a member of a different NASA CU, jscfcu.org [no warning page when I go there] but it has lower rates.

Besides, I'm old-fashioned and prefer dealing with local banks/CUs.

.

 

[njhowie]

I remember checking into that NASA FCU months ago. I am not eligible because membership is too restricted.

Everyone is eligible.

Go to the website, choose open account, then look at the last option under Select Your Eligibility: "Need another way to join"? It's a free one year membership to NSS which makes you eligible.

 

[Helena]

Everyone is eligible.

Go to the website, choose open account, then look at the last option under Select Your Eligibility: "Need another way to join"? It's a free one year membership to NSS which makes you eligible.

As I said... just now I tried to go to that website again... but I received a warning on my mobile phone not to go there. I've accessed many other financial websites, but I've never seen that warning page show up before.

.

 

[jazz4cash]

As I said... just now I tried to go to that website again... but I received a warning on my mobile phone not to go there. I've accessed many other financial websites, but I've never seen that warning page show up before.



.

I don’t have any issue going to the site. Could be a privacy setting on your browser.

 

[pb4uski]

Try https://www.nasafcu.com/ .... it shows as secure on Chrome.

 

[Golden sunsets]

As I said... just now I tried to go to that website again... but I received a warning on my mobile phone not to go there. I've accessed many other financial websites, but I've never seen that warning page show up before.

.

Try accessing the website via your computer. I have found that my ipad frequently restricts me from going to specific websites for no apparent reason, so perhaps your mobile phone is the same.

 

[Golden sunsets]

Try accessing the website via your computer. I have found that my ipad frequently restricts me from going to specific websites for no apparent reason, so perhaps your mobile phone is the same.

But note, the website states the 3.25% 15 mo CD rate is through 9-30. At this point, even with speedy processing, I would not expect to fund the CD before 9-30. I do think you have 10 days to fund the CD, but I would not want to trust that 10 day period. I started the process of opening the account last Wednesday, and finalized the funding today, so 5 business days.

 

[adrift]

But note, the website states the 3.25% 15 mo CD rate is through 9-30. At this point, even with speedy processing, I would not expect to fund the CD before 9-30. I do think you have 10 days to fund the CD, but I would not want to trust that 10 day period. I started the process of opening the account last Wednesday, and finalized the funding today, so 5 business days.

There is this post on the deposit account blog.


I have no idea if this is correct. I've had a banking relationship with NASA FCU for over 3 years. At least then, it was very easy to open an account.


A bit over a week ago, I opened a 3.25% 15-month CD at NASA. I did an ACH into NASA. The next day I used their internet chat to open the CD. It took less than 3 minutes (they timestamp the chat).


I have a Northwest FCU CD maturing on 10/2. If NASA is indeed still making this offer, I'm very likely to be opening another CD there.

 

[Golden sunsets]

There is this post on the deposit account blog.


I have no idea if this is correct. I've had a banking relationship with NASA FCU for over 3 years. At least then, it was very easy to open an account.


A bit over a week ago, I opened a 3.25% 15-month CD at NASA. I did an ACH into NASA. The next day I used their internet chat to open the CD. It took less than 3 minutes (they timestamp the chat).


I have a Northwest FCU CD maturing on 10/2. If NASA is indeed still making this offer, I'm very likely to be opening another CD there.

Ha. I have a NWFCU 3% CD maturing as well, on 10/10. If the rate is still available I may open another one too. Now that we have an account at NASA we could open the CD on a next day basis. Once the share account was opened, I ACH'd the money to fund the CD from my main bank account and it showed up overnight. Perhaps their October deal will be for a different maturity. That would be potentially enticing as well.

 

[Dtail]

FZDXX invests in 40 percent commercial paper. It requires $100k initial investment, which I could do, but prefer not to. The current reduced ER with waiver is 0.3 percent. I would have to pay state tax in the taxable account. I'll stick with treasuries for now.

ETA: ER on VMMXX is 0.16 percent.

But you don't have to keep 100k in the account after opening it up.

 

[Another Reader]

But you don't have to keep 100k in the account after opening it up.

I understand that but the carrot is tiny and treasuries are better anyway with no state income tax.

 

[njhowie]

Wells Fargo 2-year brokered CDs posted this evening at 2.95%.