Best CD & MM Rates Thread 2018 Archive

[dixonge]

Check their GAT rates, their inflation is a little higher than ours, also I would debate the overall stability of the Peso over time.

That's the beauty of operating in two currencies.

 

[Running_Man]

When was the last time CD rates were this much better than Treasuries? What happened next?

I watch the CD rates quoted on Fidelity vs the rates on US treasuries and usually a 3-5 year CD rate is a 1/4 point higher on CD vs comparable treasuries. Currently CD rates are .1 higher on 2 year and .44 on 5 year which is the high end, which I take to mean the big banks are finding more activity for lending, which in general is good for the economy. Right now 2 year CD offered at 2.90 and 5 year at 3.40

During the slower times in the economy CD rates would more frequently fall below the treasury rates.

Rates seem to be breaking out in an upward move at the present time, so it looks like the FED will shortly be raising rates to keep up with the market. If the economy stays this hot we may see 4 percent on the 30 year before long.

 

[Montecfo]

Rates seem to be breaking out in an upward move at the present time, so it looks like the FED will shortly be raising rates to keep up with the market. If the economy stays this hot we may see 4 percent on the 30 year before long.[/QUOTE]

The market is actually reflecting an expected Fed rate hike in 7 days.

 

[audreyh1]

Yes, finally. Will the 10-year close above 3% for two days in a row! Bated breath.

The 5 year is finally back above 2.9% and has reached a decade high?

 

[pb4uski]

....Rates seem to be breaking out in an upward move at the present time, so it looks like the FED will shortly be raising rates to keep up with the market. If the economy stays this hot we may see 4 percent on the 30 year before long.

The bond market follows what the Fed does, not the other way around as you wrote.

ETA: clarify bond market and not stock market

 

[ShokWaveRider]

MYGAs are based on The 10 year and 30 year bond, not what the Fed does. At least that is what I was told by an insurance company I was looking into investing in.

 

[audreyh1]

The market follows what the Fed does, not the other way around as you wrote.

The bond market follows what the Fed does. The stock market - not so clear.

The Fed is following the economy (which the equity markets mirror at the moment - but not always). And the economy appears to continue to strengthen, encouraging the Fed to continue their "normalization" process.

 

[pb4uski]

The bond market follows what the Fed does. The stock market - not so clear.

The Fed is following the economy (which the equity markets mirror at the moment - but not always). And the economy appears to continue to strengthen, encouraging the Fed to continue their "normalization" process.

If you go back to my post you will see that my post was in response to a comment on the direction of interest rates... it should have been apparent that I was talking about the bond market.

 

[pb4uski]

MYGAs are based on The 10 year and 30 year bond, not what the Fed does. At least that is what I was told by an insurance company I was looking into investing in.

MYGAs would be based on bonds generally, not necessarily the 10 and 30 year... but bond interest rates are influenced by what the Fed does so it is somewhat of a difference without a distinction.

 

[audreyh1]

If you go back to my post you will see that my post was in response to a comment on the direction of interest rates... it should have been apparent that I was talking about the bond market.

OK - but I thought that Running_Man was referring to the stock market in his comment.

 

[copyright1997reloaded]

Does anyone know for a fact if/when this offer might close? We are in the process of selling our house and are scheduled to close on October 9th and I *really* want to put those proceeds into that NASA CD. I *could* close out a couple of the Ally CDs I have, but would take the two-month penalty hit...but would prefer not to do that. I shouldn't complain...it's a good problem to have.

According to this page: https://www.nasafcu.com/rates/share-certificate-rates/

The following rates are effective on September 1, 2018, and subject to change without notice.

and this is in the footnote for the 15-month CD:
[QUOTE Available for Certificate and IRA funds. Minimum $5,000 new funds required. Early withdrawal penalties apply and may reduce earnings. A minimum of $5,000 in new funds must be brought from an external source and must be deposited between September 1, 2018 and September 30, 2018. Credit Union reserves the right to limit deposits into this special certificate. This limited-time offer is subject to change at any time without notice. Special certificate renews automatically to a standard 12-month term at the rate in effect at the time of renewal unless instructed otherwise.[/QUOTE]

Given this, I wouldn't bet that it would still be available.

If you have an investment account, you might be able to borrow from it (margin), take those funds and open the NASA CD. Then when the closing happens, pay off the margin loan. Since you have the Ally CD's, you aren't taking a lot of risk (even if the closing were for some reason not happen). I did this technique to fund a 2nd NASA CD while I was waiting for some ACH funds to clear...which I used to pay off the short term margin loan.

 

[copyright1997reloaded]

I went into the branch to open and fund a 15 mo IRA CD today. I was unable to get the 3rd party website to work. It took about an hour even though I already have an IRA there and had check in hand from Fido payable to NASA FCU. Their system does not adequately distinguish between rollovers and transfers. I’m fed up with jumping through all these hoops and need to find another way to access decent fixed rate offers. I did get good service in the branch but they are very lightly staffed.

I've read this a few times now and don't understand what you are stating. Whose 3rd party website? "Their system" refers to what?

 

[Henry Lili]

Customers Bank has a 2.25% on line savings account available . Rate guaranteed until 6/30/19.

 

[Helena]

.


A regional bank [LA/TX] is offering a new FDIC insured "variable CD" with a base rate and the possibility that rate will increase with an increase in the federal fund rate. But it never goes down below the initial base rate.

For example, a 5 year CD's base rate is 3% [based on a 2% fed fund rate.]

Any comments positive or negative about this kind of CD ??

https://www.fgb.net/variable-cd


.

Many are forecasting the federal fund rate to continue to increase through next year.

Any comments ??

.

 

[jazz4cash]

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

I've read this a few times now and don't understand what you are stating. Whose 3rd party website? "Their system" refers to what?

Not sure I can answer this. When I go to the retirement center web link, it says “you are leaving nasafcu” and you have to acknowledge before proceeding. I’m not sure who the site vendor is but it is confusing. After you input your info and review it, you should be able to print them as .pdf but this time the forms are blank. I used this process before and it was ok. The forms are exactly the same as Andrews FCU and the process is similar as I recall.

“Their system” refers to the fact that you cannot actually identify a direct transfer from an employer savings plan. On the input sheet you can select transfer from an employer account but on the actual form all assets from employer plans are categorized as rollovers.

 

[chrisaukcam]

Does anyone invest into money market ETF's? Thoughts on pro's and con's of doing that. Seems like a way to park money short term.

 

[audreyh1]

Does anyone invest into money market ETF's? Thoughts on pro's and con's of doing that. Seems like a way to park money short term.

The things I see listed as “money market ETFs” aren’t actually money markets funds but rather ultra-short bond funds. Slightly different animal IMO.

 

[njhowie]

Customers Bank has a 2.25% on line savings account available . Rate guaranteed until 6/30/19.

It is a money market account. Slightly different. There's a $25k minimum balance to get that rate. Many folks have also indicated they are not happy with the customer service from "Customers" (poor and non-existent).

 

[njhowie]

Many are forecasting the federal fund rate to continue to increase through next year.

Any comments ??

.

Well, time for everyone to dust off their crystal balls. The forecasts change week to week as new government data is reported. The range of forecasts had been from just one more this month, to one this month and one in December, to one this month and one in December and one or two next year. With the last jobs and wage data reports, some are beginning to call for this month and December and three or four next year.

I believe the forecasts will trend to three or four for next year as we head into year end. I think the Fed will go that route unless some data comes in showing a potential slowdown in the economy beginning to develop and then they will put the brakes on the tightening and pause.

Jeff Gundlach (the new "Bond King") came out this week and stated that he stands by his projection (made in late 2016) for the 10-year going to 6% in 2020 or 2021. I follow him closely and respect his interest rate calls. However, you need to take it with a grain of salt - though he has been pretty spot on with his interest rate calls, (in January) he said the stock market would likely have negative returns in 2018, and that 3% on the 10-year would spell the end of the end of the stock bull market.

The message for us 99-percenters is that we should not lock in to long term rates with too much of our portfolios. Stick to short term (no more than maybe 5 years) while the rates continue to trend higher. If we do see numbers like 5% and 6% on the 10-year, then that's definitely a much better time to consider longer term maturities for a larger portion of the portfolio.

 

[Montecfo]

:: dusting off crystal ball ::

I think we get 3 or possibly 4 between now and mid 2019, then a pause.

If the yield curve is remaining so flat, I think the Fed could speed up the unwinding of their balance sheet to coax rates higher on the long end.

If they are able to do so, it will be a good thing.

At some point the economy will begin to stumble. My guess is this could happen in the next 12-24 months.

Staying with st bonds, treasuries and CDs. Re-evaluate when we hit that pause.

I am sure little of this will be right, but it is helpful to have market expectations when investing.

 

[Henry Lili]

It is a money market account. Slightly different. There's a $25k minimum balance to get that rate. Many folks have also indicated they are not happy with the customer service from "Customers" (poor and non-existent).

I have had an account there before. Never had a problem. I called with questions about this offering and the rep was on point and pleasent. Also, opening this on-line account was easy. They will ACH up to $50k to initially fund the account. Beyond that, check or wire. Possibly electronic but may have a daily limit of some sort.

 

[njhowie]

I have had an account there before. Never had a problem. I called with questions about this offering and the rep was on point and pleasent. Also, opening this on-line account was easy. They will ACH up to $50k to initially fund the account. Beyond that, check or wire. Possibly electronic but may have a daily limit of some sort.

That's good to hear. I was looking at the comments on depositaccounts.com last month and shied away from opening an account because of them.

 

[audreyh1]

I have had an account there before. Never had a problem. I called with questions about this offering and the rep was on point and pleasent. Also, opening this on-line account was easy. They will ACH up to $50k to initially fund the account. Beyond that, check or wire. Possibly electronic but may have a daily limit of some sort.

Banks and credit unions that have ACH limits handle larger transfers initiated by other financial institutions just fine. So you aren’t really bound by those limits.

 

[Henry Lili]

Yeah. I usually move sums out of a brokerage account or Allly so haven't run into that issue. Was just pointing it out as it's a bit fuzzy in the copy on the site. At least to me.

 

[erkevin]

Marcus (Goldman Sachs) savings is now at 1.9%