Best CD & MM Rates Thread 2018 Archive

[almost there]

My only complaint with Ally?
They used to be leaders (a few yrs ago) with the best interest rates in on line banking.
Now, they are middle of the pack at best. These days, Credit unions & brokered CD's are way ahead of Ally's rates. Have about 300k with them. But not for long.......

 

[mickeyd]

PMMF has finally been bumped up to 2.30%. Slow and steady increase.

 

[Dash man]

PenFed rates are 3.5% for five years. Just when I was planning move my money out of there after my CDs mature this month.

 

[almost there]

Locked up some 3.5% 5 yr CD's a couple months ago.
I am going to start 4 new CD's in Jan.
Paying the 150 day penalty on a 2% 5 yr with 2 1/2 yrs to go.
As it stands now 3 mo 2.4%, 6 mo 2.5%, 9mo 2.6% and 12 mo 2.8%
Then roll them into longer durations when they come due.
Could be higher in Jan. Will find out soon! Silly game............lol lol

 

[pb4uski]

PenFed rates are 3.5% for five years. Just when I was planning move my money out of there after my CDs mature this month.

But Vanguard and others are offering 3.5% on 5 year CDs so I would rather have my funds consolidated in one place.

 

[Ready]

Has anyone found a deal on brokered CDs that provides a higher interest rate than the best deals available through traditional banks? It looks like the best deal on a 5 year bank CD is 3.6% right now but there were a few credit unions offering 4% just recently, so it’s likely we will see those deals come back at some point.

 

[Dash man]

But Vanguard and others are offering 3.5% on 5 year CDs so I would rather have my funds consolidated in one place.

I like to keep my insured funds under the cap at each institution. I also don’t use Vanguard because I know too many people who work there. Their campus is just 25 minutes from here.

 

[pb4uski]

You're missing the point... be it Vanguard or Fido, I prefer to have fewer accounts if possible. Staying under the FDIC cap isn't an issue since it is the issuing bank that counts. I can somewhat understand your hesitancy if you know a lot of people at Vanguard.

 

[audreyh1]

Has anyone found a deal on brokered CDs that provides a higher interest rate than the best deals available through traditional banks? It looks like the best deal on a 5 year bank CD is 3.6% right now but there were a few credit unions offering 4% just recently, so it’s likely we will see those deals come back at some point.

Occasionally I see better deals on new issue brokered CDs. Not always. You have to check.

 

[jazz4cash]

Has anyone found a deal on brokered CDs that provides a higher interest rate than the best deals available through traditional banks? It looks like the best deal on a 5 year bank CD is 3.6% right now but there were a few credit unions offering 4% just recently, so it’s likely we will see those deals come back at some point.

The deals I see at Fido are for 2ndary market CDs in the 2-3 yr range at ~3.3%. If you are diligent you might grab a deal for a 5 yr term but the offerings are very transient and I’ve never seen a 5yr that was any better than new issue. . NJ Howie seems to track these closely.

 

[MJ]

I recently opened an Ally Trad and Roth IRA 2% online account and started the process of a direct transfer of my sizable PFCU IRA accounts to Ally. I planned to keep the money there until I find suitable CDs for my stash when I remembered PFCU's had a no early withdrawal penalty for IRA certificates. I'll cancel my transfer request and move the money into 5 year certificates earning 3.4% APY. When I find a much higher rate for 5/7 years, i'll withdrawal the balance leaving $1000 without any penalty. I can even later withdraw the last $1000+ as part of my annul RMD. Maybe by the end of December PFCU will wake up and raise their rates significantly higher to keep people from leaving.

 

[jazz4cash]

I recently opened an Ally Trad and Roth IRA 2% online account and started the process of a direct transfer of my sizable PFCU IRA accounts to Ally. I planned to keep the money there until I find suitable CDs for my stash when I remembered PFCU's had a no early withdrawal penalty for IRA certificates. I'll cancel my transfer request and move the money into 5 year certificates earning 3.4% APY. When I find a much higher rate for 5/7 years, i'll withdrawal the balance leaving $1000 without any penalty. I can even later withdraw the last $1000+ as part of my annul RMD. Maybe by the end of December PFCU will wake up and raise their rates significantly higher to keep people from leaving.

Their EWP policy has changed...It ranges from 90 days interest for terms of 6 months up to 30% of what would have been earned if held to maturity for terms of one year or more.

https://www.penfed.org/content/dam/penfed/general/pdf/Forms/deposit-account-forms/687

Edit: Hopefully you can follow up on this....I thought RMDs were excepted from EWP but I don't see that in the linked document.

 

[MJ]

Their EWP policy has changed...It ranges from 90 days interest for terms of 6 months up to 30% of what would have been earned if held to maturity for terms of one year or more.

https://www.penfed.org/content/dam/penfed/general/pdf/Forms/deposit-account-forms/687

Edit: Hopefully you can follow up on this....I thought RMDs were excepted from EWP but I don't see that in the linked document.

I forgot to mention that the IRA EWP benefit applies to those over 59 1/2. I sometimes forget that I am an ol gizza.
See https://www.penfed.org/accounts/traditional-ira-certificates

 

[Ready]

My PenFed CDs mature next week. Renewing is out of the question due to the ridiculous EWP they now have. I guess I’ll just keep my money in a 2% savings account until some decent 4% CDs come back on the market.

 

[jazz4cash]

You referring to their taxable certificates. Their IRA certificates have a different rule. See https://www.penfed.org/accounts/traditional-ira-certificates

OK, I see what you are saying, but the disclosure I linked is for IRA CDs as well as traditional. The early withdrawal penalty is the loss of dividends The penalty is capped at all dividends earned. I think many EWPs have this cap.

Edit: I have some older Penfed IRA CDs and one of the EWP exceptions is age 59 1/2.

 

[MJ]

OK, I see what you are saying, but the disclosure I linked is for IRA CDs as well as traditional. The early withdrawal penalty is the loss of dividends The penalty is capped at all dividends earned. I think many EWPs have this cap.

Edit: I have some older Penfed IRA CDs and one of the EWP exceptions is age 59 1/2.

I need to correct myself. The IRA EWP exception for partial withdrawals leaving a minimum of $1000 balance is for those over 59 1/2 years.

 

[almost there]

Has anyone found a deal on brokered CDs that provides a higher interest rate than the best deals available through traditional banks? It looks like the best deal on a 5 year bank CD is 3.6% right now but there were a few credit unions offering 4% just recently, so it’s likely we will see those deals come back at some point.

No, I have not. There were two small FCU's I did see that had 4% for a short window. Now 3.5%... 3.6% -3.65% brokered at Schwab is still the best 5 yr I have found. Looking forward to Jan. though........The one yr at 2.8 seems the best deal going. To me anyway.

 

[jazz4cash]

I need to correct myself. The IRA EWP exception for partial withdrawals leaving a minimum of $1000 balance is for those over 59 1/2 years.

Do you see that in writing anywhere? I see it in the disclosure for some of my OLD IRA CDs at Penfed, but the 59 1/2 exception for EWP in IRA CDs is not included in the current CD disclosure that covers both IRA and taxable CDs. I thought it was great when they did that but it appears the new EWP policies are quite stringent as you see many on here complaining.

 

[Amethyst]

T. Rowe Price Government Money (money market fund) is up to 2.36% if anyone's interested. We just had a tiny bit in there; I grew curious after noticing that it seemed to be growing

 

[MJ]

Do you see that in writing anywhere? I see it in the disclosure for some of my OLD IRA CDs at Penfed, but the 59 1/2 exception for EWP in IRA CDs is not included in the current CD disclosure that covers both IRA and taxable CDs. I thought it was great when they did that but it appears the new EWP policies are quite stringent as you see many on here complaining.

Yes. I provided the link below in my previous reply.
https://www.penfed.org/accounts/traditional-ira-certificates

from this link
Partial withdrawals for members over the age 59 1/2 (including Required Minimum Distributions) and qualified distributions regardless of age (including Disability) may be processed from IRA certificates without incurring an early redemption penalty.

 

[jazz4cash]

Ok, Thanks MJ. I finally found it buried in the scroll. Good eye! It does seem to conflict with the document I found but I agree you are good to go with your plan. I have one coming due also so this may be helpful to me.

 

[MJ]

Ok, Thanks MJ. I finally found it buried in the scroll. Good eye! It does seem to conflict with the document I found but I agree you are good to go with your plan. I have one coming due also so this may be helpful to me.

I wish I had remembered this benefit before I went through starting the process of transferring my IRAs to Ally which I now have to undo quickly before the 12/6.

 

[friar1610]

Navy Federal CU two year 3%.

 

[nwsteve]

Just saw an 18 mon HY CD for 2.75% from Ally

 

[almost there]

Have CD rates always been screwey like this? Places like ALLY offering basically the same 2.6-2.7% rate on a 12 mo as they do for a 2 or 3 year CD? And credit unions offering anywhere from 2.35% to 3.82% on a 5 yr. depending where you look? CIT 2.25% on a savings account, 2.5% on an 18 month and 1.7% on a 5 year CD? Also, some credit unions offer higher CD rates than brokered CD's?Just surprised.