Best CD & MM Rates Thread 2018 Archive

[Ready]

4% is a great rate. Does anyone know what the early termination penalty is?

 

[audreyh1]

4% is a great rate. Does anyone know what the early termination penalty is?

From their FAQs

If your account has an original term of one year or less: The penalty will equal 90 days dividends on the amount withdrawn subject to penalty. If your account has an original term of more than one year, but less than five years: The penalty we may impose will equal 180 days dividends on the amount withdrawn subject to penalty. If your account has an original term of five years or greater: The penalty we may impose will equal 365 days dividends on the amount withdrawn subject to penalty.

So 5 years - whopping 365 days of interest.

 

[Ready]

From their FAQs

So 5 years - whopping 365 days of interest.

Thanks! I don’t want to lock into that rate for five years with that penalty. I won’t purchase any CD that has anything greater than a six month penalty. Those are getting harder to find though. Too bad...hopefully other banks will follow.

 

[audreyh1]

Thanks! I don’t want to lock into that rate for five years with that penalty. I won’t purchase any CD that has anything greater than a six month penalty. Those are getting harder to find though. Too bad...hopefully other banks will follow.

Probably more opportunities coming soon.

 

[Spock]

2019 is looking good for 5yr 5% finally...........normal interest rates in the future. "The real rate for the entire 700-year history is 4.78%"

https://dailyreckoning.com/history-teaches-interest-rates-2/

You are joking right?
The very next sentence in the same linked article:

Schmelzing’s researches show that the real rate for the entire 700-year history is 4.78%.
​

Meantime, the real rate for the past 200 years averages 2.6%.
​

Just study the 700 year graph for 30 seconds... the trend is clearly declining with lower peaks and lower valleys.

 

[Spock]

Maybe I live under a rock, but I had not seen these before in brokered CDs.
Fidelity now has a handful of step-up CDs in 2/3/5year maturities.
Kinda interesting to see 5% out in 2023 (assuming rates don't start dropping again before then). BUT. at 4 years out it just starts to catch-up to where my freshly bought inventory of 5 yrs are now... So I think I'm still coming out ahead.
An example:
CITIBANK NA

End Date Coupon Yield to Maturity
11/19/2020 3.100 3.100
11/19/2021 3.500 3.229
11/19/2022 3.750 3.353
11/19/2023 5.000 3.658

 

[audreyh1]

Synchrony Bank high yield savings now 2.05% up from 1.90%

Looks like that happened yesterday.
https://www.depositaccounts.com/banks/synchrony-bank/offers/

 

[dixter]

https://www.treasury.gov/resource-c...rest-rates/Pages/TextView.aspx?data=billrates

the 4 week T-bill today is 2.19%

 

[Spock]

CIT bank has a 2.15% savings acct (25k minimum) advertised on mint,

 

[ShokWaveRider]

Remember I asked whether we would see 4% by year end? A lot of you were not so confident they would. Well here is number 2.

Bank of Utica (NY) Boosts 5-Year CD To 4.00% APY

I guess my next question is will see 5Year 5% by the end of 2019?

 

[fosterscik]

The nice part is that Vanguard's VMMXX mirrors these T-bill/CD/savings rate increases: now 2.22%.
I find it especially convenient to leave my liquid funds with my broker rather than chasing offers at various locations.

 

[audreyh1]

Remember I asked whether we would see 4% by year end? A lot of you were not so confident they would. Well here is number 2.

Bank of Utica (NY) Boosts 5-Year CD To 4.00% APY

I guess my next question is will see 5Year 5% by the end of 2019?

If the Fed takes the Fed Rate from today’s 2.25% to 3.25% by the end of 2019 that certainly seems possible, unless long rates gets pushed down due to economic outlook concerns or some other crisis.

Assuming the almost certain 0.25% raise this December, that would mean 3 more rises in 2019.

 

[ShokWaveRider]

If the Fed takes the Fed Rate from today’s 2.25% to 3.25% by the end of 2019 that certainly seems possible, unless long rates gets pushed down due to economic outlook concerns or some other crisis.

Assuming the almost certain 0.25% raise this December, that would mean 3 more rises in 2019.

I am tempted to move my "Big" CDs from PenFed in December to VMMXX and cruise along at 2.xx% for a while. I will put the Pre-Tax qualified Money (about 40%) of our Nest Egg, in for another 5 years at 4.xx% to take me till RMD., and see what turns out better for the After Tax Cash. I am still Vacillating.

 

[calmloki]

Just checked: 1/5/2007 we opened some three year certs with PenFed for 6.25%. For the last 11 years I've been taking grief for not getting the ten year version. I'm just too short-sighted and keep buying short term investments. Which does work out much of the time.

 

[pb4uski]

One thing to remember to do (I just did this the other day).... get online and set your PenFed CDs so that they don't automatically renew under the More account info and actions and then Certificate Options.

Like SWR, I'll probably park mine in VMMXX for a bit and wait out the rise in rates rather than lock in at this time... I'm just a dirty market timer.

 

[REWahoo]

Like SWR, I'll probably park mine in VMMXX for a bit and wait out the rise in rates rather than lock in at this time...

I think there is a long line forming behind you to do the same.

 

[pb4uski]

as long as the line is behind me and not in front of me....

 

[audreyh1]

I am tempted to move my "Big" CDs from PenFed in December to VMMXX and cruise along at 2.xx% for a while. I will put the Pre-Tax qualified Money (about 40%) of our Nest Egg, in for another 5 years at 4.xx% to take me till RMD., and see what turns out better for the After Tax Cash. I am still Vacillating.

Six month treasuries are also an option. They are paying around 2.5%.

 

[Huston55]

The nice part is that Vanguard's VMMXX mirrors these T-bill/CD/savings rate increases: now 2.22%.
I find it especially convenient to leave my liquid funds with my broker rather than chasing offers at various locations.

+1

Same with FZDXX.

BTW, Darrow K just posted a good blog-bit on this. https://www.caniretireyet.com

 

[Free bird]

Filthy market timers & disgusting rate chasers.

 

[Another Reader]

Filthy market timers & disgusting rate chasers.

Why, thank you for the compliment!

 

[almost there]

Put a good bunch in at 2.7% for 1 yr. this week. Thinking its probably a wash.
Waiting around in the 2% range V.S getting .7 more for a year then getting a 5 yr with the funds (that I believe will be 5% or more 12 mo's from now) Silly games.......

 

[jazz4cash]

The nice part is that Vanguard's VMMXX mirrors these T-bill/CD/savings rate increases: now 2.22%.
I find it especially convenient to leave my liquid funds with my broker rather than chasing offers at various locations.

How often does the rate on VMMXX adjust? Does it move in lock step or adjust monthly or

 

[fosterscik]

How often does the rate on VMMXX adjust? Does it move in lock step or adjust monthly or

I haven't paid enough attention to give a definitive answer. But if you want daily rates you can go here:
https://personal.vanguard.com/us/fu...inDate=01/01/2018&endDate=11/7/2018&year=#res

VMMXX is fund 0030. Enter any date range you want.

On January 1 the yield was 1.37%. June 21 it hit 2.0%. It's now 2.22%.

 

[JDRbole]

13 week Treasure Bill 2.366
See the rates from recent auctions 4, 8, 13, 26, 52 week on the US Treasury direct site.
https://www.treasurydirect.gov/instit/annceresult/annceresult.htm

Buying T Bills is easier than you think.