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12-26-2018, 01:19 PM
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#801
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,296
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^^^
In my parents CD Ladder, the first 1 yr is due in Feb. Will gladly take a 3.5% replacing a 1.90%.
__________________
TGIM
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12-26-2018, 01:34 PM
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#802
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Thinks s/he gets paid by the post
Join Date: Jun 2016
Posts: 1,961
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 Quote:
Originally Posted by 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....
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Just my guesses
1. there is always a lag between the fed and the banks
2. while the fed said 2 more hikes next year, the market is pricing/betting in 0 raises next year and a cut in 2020. If it were my bank I wouldn't be in a rush to raise rates with those forecasts.
ETA: The qty of available CDs is also way down in my limited perspective. Fidelity used to have 200-300 new issues available, to day there are only 62 scattered across all maturities... take out the foreign and lower rated institutions and some maturities are slim pickings.
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12-26-2018, 01:48 PM
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#803
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Full time employment: Posting here.
Join Date: Apr 2015
Posts: 580
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Quote:
Originally Posted by Dtail
^^^
In my parents CD Ladder, the first 1 yr is due in Feb. Will gladly take a 3.5% replacing a 1.90%.
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I think your a little overly optimistic! I'll be happy with 3% by then. Our local bank is at 2.90% right now for 18 months.
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12-26-2018, 02:16 PM
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#804
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,139
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Long CD rates have been coming down because the long treasuries have dropped significantly over the past few weeks. Seeing lower rates via Fidelity.
You can still get 3.5% for 5 year at PenFed.org.
The short-term CDs are still up. Ally is offering 2.85% for a 14 month CD special.
__________________
Retired since summer 1999.
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12-26-2018, 02:39 PM
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#805
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,296
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Quote:
Originally Posted by Drake3287
I think your a little overly optimistic! I'll be happy with 3% by then. Our local bank is at 2.90% right now for 18 months.
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Sorry what I meant is that as part of the ladder buildup, the 5 year rate of 3.5% will replace the current 1 yr CD of 1.90%, as each piece of the ladder converts to a 5 yr CD.
__________________
TGIM
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12-26-2018, 02:41 PM
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#806
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Thinks s/he gets paid by the post
Join Date: Aug 2007
Posts: 2,872
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Quote:
Originally Posted by ShokWaveRider
VMMXX Paying 2.43% Compounded 7 day Yield
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The 7 day SEC yield for this fund is 2.40%.
__________________
Eat, Drink and Be Merry.
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12-26-2018, 07:18 PM
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#807
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,326
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Quote:
Originally Posted by Dtail
Sorry what I meant is that as part of the ladder buildup, the 5 year rate of 3.5% will replace the current 1 yr CD of 1.90%, as each piece of the ladder converts to a 5 yr CD.
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I think Drake meant the 5 yr rate in effect in Feb when your 1 yr rolls over is likely to be less then it is currently.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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12-27-2018, 02:06 AM
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#808
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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Quote:
Originally Posted by 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....
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This has been happening over the past several weeks - even leading up to the rate hike.
There has also been increased demand for longer-dated CDs and yields have been pushed lower on those which are longer-dated as a result.
This is happening because there is a swath of investors looking for safety/quality as they are concerned about the investment environment. I take a reality check every month or so as my maturities roll in looking for reinvestment. We're only ~2 years out from when short-term rates were at zero and 5-year CDs were below 2%. Today, everyone is talking that we're near the end of hikes for this cycle, and the Fed rate isn't even at 3%.
Without inflation picking up in 2019, and a pullback in aggressiveness of the Fed to continue rate hikes, demand for those 10-year CDs is going to continue, keeping them only a smidge above 5-year yields.
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12-27-2018, 10:41 AM
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#809
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Thinks s/he gets paid by the post
Join Date: Aug 2017
Location: Champaign
Posts: 4,722
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Through VG bought 5 yr CD with Wells Fargo, 3.5%.
__________________
"Do not go where the path may lead, go instead where there is no path and leave a trail."
Ralph Waldo Emerson
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12-27-2018, 11:56 AM
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#810
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,006
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Am thinking things are sold out so to speak. Will watch the next month or so & see if the 5 yr picks up. Just a guess..........
Also need to watch brokered 5 yr CD's. As some are actually 7 yr under the 5 yr menu......
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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12-28-2018, 02:22 PM
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#811
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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AMEX savings goes to 2.1% - Ally shouldn't be far behind.
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12-28-2018, 03:07 PM
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#812
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,006
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Ally down to 1.98%. Annual Percentage Yield: 2.00%.........
SWVXX money market still 2.26%
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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12-28-2018, 03:49 PM
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#813
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Full time employment: Posting here.
Join Date: Jan 2010
Posts: 734
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Quote:
Originally Posted by njhowie
AMEX savings goes to 2.1% - Ally shouldn't be far behind.
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Barclays online savings is at 2.2%. Usually neck-and-neck with AMEX.
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12-28-2018, 04:38 PM
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#814
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Full time employment: Posting here.
Join Date: Apr 2015
Posts: 580
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Quote:
Originally Posted by almost there
Ally down to 1.98%. Annual Percentage Yield: 2.00%.........
SWVXX money market still 2.26%
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It's been at that APY for awhile now. I think some people get confused with the APY and APR meaning even though it's generally close to the same.
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12-28-2018, 04:41 PM
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#815
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,006
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Thought it was a bit higher? My mistake...
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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12-28-2018, 04:50 PM
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#816
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Full time employment: Posting here.
Join Date: Apr 2015
Posts: 580
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Literally splitting pennies!
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12-28-2018, 04:59 PM
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#817
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,006
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No, just watching CD rates follow the ten yr, downward. Surprised to say the least.....
Above I listed both Ally current int % rate and APY.
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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12-31-2018, 11:05 AM
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#818
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Thinks s/he gets paid by the post
Join Date: Aug 2009
Posts: 1,578
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12-31-2018, 01:21 PM
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#819
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Thinks s/he gets paid by the post
Join Date: Mar 2010
Posts: 1,994
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My 3%-5 year PenFed Cd's came due this month. Proceeds have been siting in the share account.
Trying to decide which term to reinvest in. 2-year = 2.95%, 3 year = 3.05% and 5 year 3.5%. Not sure the extra 0.5% is worth it to keep it invested for another 2 or 3 years.
I did lock in 2 jumbo CD's with Langley Federal Credit Union at 3% for 29 months.
Thought I might wait another week or two.
Decisions, Decisions!
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12-31-2018, 01:53 PM
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#820
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Thinks s/he gets paid by the post
Join Date: Aug 2009
Posts: 1,578
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Quote:
Originally Posted by sheehs1
My 3%-5 year PenFed Cd's came due this month. Proceeds have been siting in the share account.
Trying to decide which term to reinvest in. 2-year = 2.95%, 3 year = 3.05% and 5 year 3.5%. Not sure the extra 0.5% is worth it to keep it invested for another 2 or 3 years.
I did lock in 2 jumbo CD's with Langley Federal Credit Union at 3% for 29 months.
Thought I might wait another week or two.
Decisions, Decisions!
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The Able one above gives you 3.2% for 2 yr, and 3.3% for 3 yr.
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