Best CD & MM Rates Thread 2018 Archive

[Spock]

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.

Interest rates are moving in response to the Fed raising rates.
There is nothing that says they have to move in a coordinated fashion.

 

[almost there]

Within the same organization though?

 

[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 just got off with PFCU IRA and I misunderstood their early partial withdrawal policy for those over 59 1/2. You can only do an EW without penalty if it is a partial distribution. You CANNOT do a partial direct transfer to another institution with incurring a EWP. The only option is to do a once a year indirect rollover without incurring an EWP. Again this is for a early withdrawal before maturity.

 

[ShokWaveRider]

Looks like PenFed is getting more aggressive in anticipation of the mass exodus in the next 2 months.

3 Year up to 3.05% APY
5 Year up to 3.5% APY

 

[Spock]

Within the same organization though?

Absolutely. An institution will have different projections of their cash needs. With rates rising they might be inclined to bump their short term but not their long term rates or visc versa. The rates don't move in sync across an institutions maturity dates. Case in point is the common practice of having 3/6/9month CD rates lower than their savings account.

 

[CaptainO]

I just noticed some disturbing verbiage in the membership agreement for Mountain America Federal Credit Union:

"Common Features On All Accounts
Nature of Dividends. The Credit Union pays dividends from current income and available earnings, after required transfers to reserves at the end of the dividend period, thus dividends are not guaranteed. The Dividend Rate and Annual Percentage Yield set forth in the Schedule are prospective rates and yields the Credit Union anticipates paying for the applicable dividend period."

I did a quick Internet search and noticed this disclosure is not uncommon among credit unions. Has anyone else noticed this? Do you think the payment of dividends is insecure as it sounds?

 

[pb4uski]

Looks like PenFed is getting more aggressive in anticipation of the mass exodus in the next 2 months.

3 Year up to 3.05% APY
5 Year up to 3.5% APY

Yeah, but there are lots of 3.5%+ CDs out there so unless someone wants to keep their money at Penfed I don't see 3.5% as stemming the tide at all.

 

[ShokWaveRider]

Yeah, but there are lots of 3.5%+ CDs out there so unless someone wants to keep their money at Penfed I don't see 3.5% as stemming the tide at all.

Unless one is happy with PenFed. However I am tempted to move all our assets to Fidelity and consolidate.

 

[pb4uski]

+1 It isn't that I am unhappy with PenFed but if there is no significant economic benefit I would rather have things consolidated at Vanguard and Fidelity.

 

[almost there]

I just noticed some disturbing verbiage in the membership agreement for Mountain America Federal Credit Union:

"Common Features On All Accounts
Nature of Dividends. The Credit Union pays dividends from current income and available earnings, after required transfers to reserves at the end of the dividend period, thus dividends are not guaranteed. The Dividend Rate and Annual Percentage Yield set forth in the Schedule are prospective rates and yields the Credit Union anticipates paying for the applicable dividend period."

I did a quick Internet search and noticed this disclosure is not uncommon among credit unions. Has anyone else noticed this? Do you think the payment of dividends is insecure as it sounds?

My "Mountain America CU" CD's has paid its monthly div. like clockwork.
Used to have the absolute best 5 yr rates going. Just bumped the last of my one time bump 5y r CD's up to 3.51 a couple months ago. Would add more there, but am maxed out.

 

[jazz4cash]

I did a quick Internet search and noticed this disclosure is not uncommon among credit unions. Has anyone else noticed this? Do you think the payment of dividends is insecure as it sounds?

Yes I’ve noticed it and no I don’t think it sounds insecure at all. There are resources to check the health of financial institutions like depositaccounts.com.

 

[ShokWaveRider]

+1 It isn't that I am unhappy with PenFed but if there is no significant economic benefit I would rather have things consolidated at Vanguard and Fidelity.

I am considering the same with Fidelity, In fact I have started a new thread to try and get some sage advice.....

http://www.early-retirement.org/for...-one-basket-vg-or-fido-95050.html#post2151085

 

[Huston55]

+1 It isn't that I am unhappy with PenFed but if there is no significant economic benefit I would rather have things consolidated at Vanguard and Fidelity.

+2

Have been moving ladder rungs from PenFed to Fido for ~2 yrs now, and will roll last PenFed rung to Fido in Jan 2019. Will still maintain small PenFed share balance for membership purposes.

 

[MJ]

PFCU's IRA certificates have a very liberal no penalty partial early withdrawal policy for those 59 1/2 and over, besides mandatory RMD, of course. Are there other banks/CUs with similar policies?

 

[jazz4cash]

Consolidating at Fido looks more appealing since it is amazingly complicated to direct transfer IRA funds between institutions and rollovers are limited to one/12 months ( or is it one/ yr). I will probably keep the CU accounts I have but transition to Fido as opportunity presents. Fido has good online form filling tools to xfer funds.

 

[Debinnov a]

Thoughts on Navy Federal Credit Union 40 month 3.5% IRA CD? I'm retired and fixed income Cds are majority of income. Better than my past 3% Pen Fed cds. Have more $$$ to hold for possible upcoming higher rates as well.

 

[REWahoo]

Thoughts on Navy Federal Credit Union 40 month 3.5% IRA CD?

Been eyeing those myself as a new home for my PenFed IRA CDs. I'm not a NFCU member (yet) but I've not heard any negative feedback on them.

 

[Debinnov a]

My mistake, the Navy Fed IRA CD is 40 months 3.75% and may be an add on, and has $150k cap.

 

[jazz4cash]

Best CD & MM Rates Thread 2018 - 2019 - Please Post Updates Here

The NFCU 40 month @ 3.75 apy does allow additional deposits. It only requires $50 to open the CD. I always open these add-on CDs just to reserve the option to load them up as other CDs mature. I don’t expect this will be around long.
Edit: Thanks for the tip. I was looking yesterday and this was not posted.

 

[teej1985]

The NFCU 40 month @ 3.75 apy does allow additional deposits. It only requires $50 to open the CD. I always open these add-on CDs just to reserve the option to load them up as other CDs mature. I don’t expect this will be around long.
Edit: Thanks for the tip. I was looking yesterday and this was not posted.

How long do you have to add on?

 

[jazz4cash]

Best CD & MM Rates Thread 2018 - 2019 - Please Post Updates Here

You can add at any time for this one. Sometimes it is restricted to 1st quarter of the year or anniversary of the CD.

 

[MomintheSouth]

The NFCU 40 month 3.75% CD is only for IRA's and ESA's. Unfortunate.

 

[jazz4cash]

NFCU is also offering $100 dividend bonus for first time IRA. I don't qualify, but I did fund the 40 Month IRA with a whopping $50. Painless.

 

[Debinnov a]

I just opened the NFCU 40 month IRA CD and was told nothing about $100 bonus for first time IRA. Maybe doesn't count for an established IRA transfer?

 

[jazz4cash]

Best CD & MM Rates Thread 2018 - 2019 - Please Post Updates Here

Hey Deb
I think I followed you into the CD special at Andrews awhile ago. Here is the detail on the first time bonus at NFCU. I Can’t tell if you have to request it but there are some requirements. I have found the secure message link on NFCUs website to be very good for resolving issues.
https://www.navyfederal.org/savings-season-2019/save-money.php