Best CD & MM Rates Thread 2018 Archive

[almost there]

Have a bunch in Ally. But am leaving soon as they have not kept up over the past few years. All I see is a nice 12 mo. Not the best, but better than the rest of their rates.

 

[Dtail]

Have a bunch in Ally. But am leaving soon as they have not kept up over the past few years. All I see is a nice 12 mo. Not the best, but better than the rest of their rates.

Ally very strange with CD's. Their 18 month rate is below their 12 month rate. Fidelity offers a 2 yr Ally brokered CD, while Ally doesn't even offer a "regular" 2 yr CD.

 

[ExFlyBoy5]

And the fed is doing another hike. A little bit of hurry up and wait to see what comes down the pike in the next couple of weeks.

 

[Spock]

Ally very strange with CD's. Their 18 month rate is below their 12 month rate. Fidelity offers a 2 yr Ally brokered CD, while Ally doesn't even offer a "regular" 2 yr CD.

I've seen massive (2x) differences between CD terms that I can get as a retail customer of a couple of the major banks and the terms I can get from those same banks on brokered CDs at Fidelity. Counter-intuitive.

 

[audreyh1]

Related question - is there a hard pull on the credit when opening a CD at Ally, or soft pull?

I’ve never seen a credit pull from Ally on my credit records. So if they do pull it’s soft.

I don’t remember if there was an initial hard pull when I first became a customer.

 

[Dtail]

I’ve never seen a credit pull from Ally on my credit records. So if they do pull it’s soft.

I don’t remember if there was an initial hard pull when I first became a customer.

Thanks. It was not a hard pull when I became a customer, but wasn't sure about that first CD.

 

[adrift]

Ally 14-Month @ 2.85%

 

[jazz4cash]

I've seen massive (2x) differences between CD terms that I can get as a retail customer of a couple of the major banks and the terms I can get from those same banks on brokered CDs at Fidelity. Counter-intuitive.

I think most large B&M banks don’t want to be bothered with individuals buying CDs in small quantities. I assumed places like Fido agree to distribute a huge bucket of these and handle the paperwork so they get better rates and pass them on to clients. Could be wrong and I’m not sure how they get paid.

 

[Aerides]

Thanks. It was not a hard pull when I became a customer, but wasn't sure about that first CD.

I just called yesterday to bump my No-Penalty Ally CD up to the 2.3 (it's basically a close/open-new transaction, and easier on the phone I find).

They do a soft pull I guess. She indicated they do a pull but that it has zero impact on my credit (unlike a Hard inquiry).

 

[njhowie]

I think most large B&M banks don’t want to be bothered with individuals buying CDs in small quantities. I assumed places like Fido agree to distribute a huge bucket of these and handle the paperwork so they get better rates and pass them on to clients. Could be wrong and I’m not sure how they get paid.

The issuing bank pays them a fee - usually between 0.1% and 0.2%. When ML gives the trade confirmations they explicitly indicate how much they were paid.

For example:

WHEN ISSUED ISSUER HAS PAID ML A FEE OF 0.15 % YIELD 3.30% TO 11/29/2021.
INSURED TO FDIC LIMIT. FACT SHEET ENCLOSED OR UNDER SEPARATE COVER. INTEREST
FROM 11/28/18. FIRST COUPON 05/28/19.

 

[Dtail]

I just called yesterday to bump my No-Penalty Ally CD up to the 2.3 (it's basically a close/open-new transaction, and easier on the phone I find).

They do a soft pull I guess. She indicated they do a pull but that it has zero impact on my credit (unlike a Hard inquiry).

Okay great to know. Have to wait myself for the bonus period to end just to make sure no pullback of $ if moving monies beforehand.

 

[Golden sunsets]

Ally has been very clear IMO, that the money only has to stay in the institution but can move around between accounts.

 

[Golden sunsets]

Ally 14-Month @ 2.85%

Where did you see this rate? At a brokerage?

 

[Dtail]

Where did you see this rate? At a brokerage?

Well certainly not at Ally and also not at Fidelity.

 

[KB]

Where did you see this rate? At a brokerage?

Click the 14 month link. They still show the 14 month CD on Ally.com when you click the link.

 

[Drake3287]

Click the 14 month link. They still show the 14 month CD on Ally.com when you click the link.

Your right, certainly not a widely advertised rate although it does say it's a "Special". With the recent .25% interest rate hike we'll be looking at a few 18 month or less 3% rates very soon. My local Summit State Bank has had a 2.90% for the last few weeks.

With my $100,000. CD coming due next month I'll hopefully bump it up to at least 3%.

The only down fall with all these higher rates (although still low) is I'm back to earning some real money which only translates to real taxes being owed.

 

[ShokWaveRider]

The only down fall with all these higher rates (although still low) is I'm back to earning some real money which only translates to real taxes being owed.

I am considering a Fixed Deferred Annuity (MYGA) for 3 years to offset the income. Basically these are CDs with an insurance company and are tax deferred. Fidelity has some 3% with A+ Companies.

 

[audreyh1]

Where did you see this rate? At a brokerage?

Ally just now announced it. Good through Feb 2019.

 

[jim584672]

Just did an Ally Bank 14 month at 2.85%. 60 day early withdrawal penalty.

 

[Spock]

I've never focused on CDs much until this year... but its curious to see the supply (at least at Fidelity) has really dried up here towards year end... There used to be 200-300 new issues spread across the durations, today there are 72. Glean out the foreign and lower rated institutions and its almost slim pickings.


Is this normal for this time of year? Or a result of stocks tanking (people moving to cash and soaking up the inventory)? Or a perceived top in rates so banks are holding off with locking in rates?
Or?

 

[njhowie]

I've never focused on CDs much until this year... but its curious to see the supply (at least at Fidelity) has really dried up here towards year end... There used to be 200-300 new issues spread across the durations, today there are 72. Glean out the foreign and lower rated institutions and its almost slim pickings.


Is this normal for this time of year? Or a result of stocks tanking (people moving to cash and soaking up the inventory)? Or a perceived top in rates so banks are holding off with locking in rates?
Or?

I've seen it happen before. I can't remember if it was at this time last year, or some other time. However, I do seem to remember that it did occur at the end of a month. There will be plenty more available soon, I'm sure. However, they (the banks) are probably trying to figure out the lowest rates they can get away with offering.

 

[almost there]

waiting is the hardest part..........

 

[jazz4cash]

Guess I’ll be leaving Ally eventually. I’ve had issues on 3 out of last 4 transactions with them. I took a distribution of 10% from my IRA and got an email saying the account is closed. I log in and see account is not closed. I used the chat session and was told the balance dropped to 0 “in error” triggering an automated email. They haven’t sent anything saying to disregard prior email.

 

[ShokWaveRider]

VMMXX Paying 2.43% Compounded 7 day Yield

 

[almost there]

Last few days CD rates have been dropping? Brokered CD's are easiest to follow on a daily basis. Have the better paying ones been purchased as the stock market has been tanking?
Or was the last rate hike factored in / in advance and now unsettled due to shaky markets? Have heard both reasons. Was thinking rates would be going up a bit after the feds .25% hike on the 19th... With 2 more projected next year. There are isolated deals 12 month, 15 month etc. But those look like deals to attract new customers rather than across the board rates. With the better 5 yr still around 3.5%... Just something to talk about....