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Old 11-09-2018, 09:32 AM   #541
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That was a very interesting article, thanks. Along with the comments. I'm not sure I understood his conclusions though in terms of where he felt safest stashing his cash.
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Did agree with his idea of reducing the number of institutions. Am also trying to keep it to a minimum and still get a decent return. Always a struggle as great rates are offered at times to get new customers. At places you would seldom think to invest with.
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Apparently he does not consider "treasury only" money market funds, such as VUSXX, to be safe, nor does he like on-line banks because they might use bait and switch. As a result, he accepts an interest rate that guarantees he will lose out to inflation over the period he intends to hold so he can "simplify." The fear creeping into his thought process is unsettling.
First, Im a big DK fan. I think his blog has excellent, well thought out and practical advice. Hey, what else would we expect from a Civil Engineer!?!

But, I also did not completely agree with his approach which, in all fairness, he seems to be still finalizing. In particular, I do keep $$$ in a MMF (FZDXX), which has a good rate & is easy as pie to use. We link it to our Core Account and every $ earns the FZDXX yield until its consumed to pay a bill. I am also a CD ladder fan and, we have a medium length ladder.

However, I did agree with the overall concept of the blog post: (1) simplify [weve done that & are down to two institutions - Fido & PFCU] and; (2) my time has value [I like the idea of quantifying the value of my time to see if it makes sense for me to spend some on a particular thing. IOW, is it worth the candle?]
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Old 11-09-2018, 09:37 AM   #542
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Apparently he does not consider "treasury only" money market funds, such as VUSXX, to be safe, nor does he like on-line banks because they might use bait and switch. As a result, he accepts an interest rate that guarantees he will lose out to inflation over the period he intends to hold so he can "simplify." The fear creeping into his thought process is unsettling.
Well - he cuts out a lot of options. I've had accounts at several online savings banks and never experienced a "bait and switch" - although it does sound like the top interest rate banks do pull that stunt and even CIT has apparently changed account types forcing customers to move funds to get better rates.

Also - I would never consider a government type money market fund let alone treasuries only money market to be inferior to any FDIC insured account.

There are more concerns with a Prime Money Market fund. Regulations are much stricter these days, and they have safeguards to slow fund movements during times of crisis to avoid float. So I wouldn't be too worried, but I agree they are not the same as treasuries only or FDIC insured accounts.

It was interesting his concerns reading reviews about Ally Bank. In general they get some of the highest reviews for online banks, and I have never seen any kind of bait and switch stunt. You have to take reviews with a grain of salt and compare bank reviews. You read much worse reviews of other online banks. Ally is super easy to work with online.

Another thing - these banks may go to overseas customer support. But I bet when you talk to their fraud department you are talking to a US team because that's just way too sensitive. That was a very scary story about his savings withdrawal fraud issue, and it didn't sound like it was an online bank where he had the problem.

Looks like at the end he updated his blog to say he'd decided the Vanguard Prime MM fund would be a good option for him.

About simplification - I only moved into CDs and online savings accounts because yields on money market funds had become so abysmal back in 2013 plus the temporary protection for MM funds had expired. Now that things are gradually normalizing, I'll probably eventually go back to perhaps just one high yield savings accounts, drop the credit unions, and use MM funds plus CDs and Treasuries purchased through my brokerage. But I'm in no hurry. With things set up already, it's minimal effort to move funds and super easy to take advantage of things like the recent Ally offer. But I've drawn the line at opening accounts any new CU or bank for bonuses or the latest high yield CD offering.
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Old 11-09-2018, 10:23 AM   #543
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CD ladder at Connexus looks like the landing place for my PenFed 5yr CD's
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Old 11-09-2018, 11:24 AM   #544
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Equivalent to about one hour of time if you value yours as Darrow does: https://www.caniretireyet.com

Is it worth the time you spend to earn the $330?
While you might be right, I can't help myself.

After all, I am a dirty market timer and rate chaser.

Also a techno-geek, so I have about 20 tabs in my google portfolio and asset tracking spreadsheet - to the point that it (google) struggles to update the cells w/o delay. I have detailed lot holdings, summaries by symbol, various pivot tables (e.g. sorted by % change, $ change, ..., and so on.) (The equities all use Google finance api's to update pricing and other data.)
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Old 11-09-2018, 04:34 PM   #545
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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.
Ditto!
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Old 11-09-2018, 06:05 PM   #546
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My name is Freebird. Hi Freebird. I am a filthy rate shopper.
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Old 11-09-2018, 06:14 PM   #547
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My name is Freebird. Hi Freebird. I am a filthy rate shopper.
How about posting some good ones then.
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Old 11-10-2018, 03:00 AM   #548
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How about posting some good ones then.
As ripper1 mentions above without the details - at Connexus:

5-year = 4.0%
3-year = 3.35%
2-year = 3.2%
1-year = 2.8%

$5000 minimum

https://www.connexuscu.org/accounts/share-certificates/
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Old 11-10-2018, 07:01 AM   #549
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As ripper1 mentions above without the details - at Connexus:

5-year = 4.0%
3-year = 3.35%
2-year = 3.2%
1-year = 2.8%

$5000 minimum

https://www.connexuscu.org/accounts/share-certificates/
Definitely one of the very best so far. Hopefully 4% will become the norm for 2019.
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Old 11-13-2018, 09:31 PM   #550
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PenFed Premium Online Savings Account rate increase to 1.85%.
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Old 11-13-2018, 10:12 PM   #551
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PenFed Premium Online Savings Account rate increase to 1.85%.
So when did they add this savings account? I noticed that the other day, but I hadn't seen it before. Certainly not with a higher rate.
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Old 11-13-2018, 10:13 PM   #552
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PenFed Premium Online Savings Account rate increase to 1.85%.
Doesn't that have a $100,000 minimum to get that rate?
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Old 11-13-2018, 10:23 PM   #553
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100k max
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Old 11-13-2018, 10:41 PM   #554
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Doesn't that have a $100,000 minimum to get that rate?
No, its up to $100,000. Min $5.
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Old 11-14-2018, 08:53 AM   #555
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So when did they add this savings account? I noticed that the other day, but I hadn't seen it before. Certainly not with a higher rate.
It was mentioned/discussed here in this thread in late August. I opened the account but just put in the minimum so I am glad to see they are trying to keep it interesting. I could park some maturing CD money here.
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Old 11-14-2018, 09:46 AM   #556
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It was mentioned/discussed here in this thread in late August. I opened the account but just put in the minimum so I am glad to see they are trying to keep it interesting. I could park some maturing CD money here.
I already have better rates at my 3 high yield savings accounts, so it's not so interesting to me anymore. Synchrony went up to 2.05% - that's my highest yielder.

Once my PenFed CDs mature, I'm pretty much just going to be using their credit card. And we don't use it much, just for gas, and occasionally overseas. I have other no FTF credit cards now that are more convenient overseas - the FirstTech card that is great for PIN only situations, and Costco VISA for restaurants and hotels, and American Express Travel Rewards VISA for miscellaneous.
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Old 11-14-2018, 10:38 AM   #557
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Agree, Ally is at 1.9%. SWVXX at Schwab is at 2.08%.
Looking forward to 2019 & 2020.
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Old 11-14-2018, 01:26 PM   #558
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GM Financial Right Notes

They advertise 24/7 access to your money. These may have replaced the Old GMAC Demand Notes which were sort of an interest bearing checking account.

2.25% for under $15K investment
2.35% for $15K to $50K investment
2.50% for greater than $50K investment
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Best CD & MM Rates Thread 2018 - 2019 - Please Post Updates Here
Old 11-14-2018, 02:29 PM   #559
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Best CD & MM Rates Thread 2018 - 2019 - Please Post Updates Here

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They advertise 24/7 access to your money. These may have replaced the Old GMAC Demand Notes which were sort of an interest bearing checking account.

2.25% for under $15K investment
2.35% for $15K to $50K investment
2.50% for greater than $50K investment


Not sure who you mean by they, but I just got an email for GM Financial Right Notes with these rates and tiers. Right Notes are successor to the Demand Note program. Ally is a different successor to GMAC which is a bank covered by FDIC with no connection to GM.
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Old 11-14-2018, 02:33 PM   #560
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No, its up to $100,000. Min $5.
Thanks, I guess I didn't read the fine print close enough.
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