Best CD & MM Rates Thread 2018 Archive

[audreyh1]

The 2.52% became effective in May. Next I bond rate change will be this 11-1.

I bonds fixed rate increased to 0.5%! That's the highest since a brief blip up to 0.7% 10 years ago.

The semi-annual inflation rate is 1.16%

The composite rate is 2.83%.

You can see the history of the fixed rate on iBonds in this PDF file: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/IBondRateChart.pdf

 

[Livefree]

I bonds fixed rate increased to 0.5%! That's the highest since a brief blip up to 0.7% 10 years ago.

The semi-annual inflation rate is 1.16%

The composite rate is 2.83%.

You can see the history of the fixed rate on iBonds in this PDF file: https://www.treasurydirect.gov/indiv/research/indepth/ibonds/IBondRateChart.pdf

That's great! If only the Savings Bond Wizard still worked. Maybe because I'm running windows 7 and doesn't support it anymore.

 

[copyright1997reloaded]

That's great! If only the Savings Bond Wizard still worked. Maybe because I'm running windows 7 and doesn't support it anymore.

No, they stopped updating it. Bummer. Now you have to use the 'Savings Bond Calculator': https://www.treasurydirect.gov/indiv/tools/tools_savingsbondcalc.htm

 

[audreyh1]

I’m going to upgrade/replace a couple of older iBonds with lower fixed rates. These have just moved out of the initial 5 years. I can do one set this year, and another set next Jan.

Although 2.83% is still low compared to say 5 yr CDs offered right now. But it’s better than some of my current iBonds are earning.

 

[Another Reader]

Most of mine were bought from 2003 to 2008 and are paying in the low mid 3 percent range. Base rates are 1 percent plus. A few later ones at zero base rate. Not worth changing anything. Good that you brought this up, because I haven't checked on them in a long time.

 

[audreyh1]

Most of mine were bought from 2003 to 2008 and are paying in the low mid 3 percent range. Base rates are 1 percent plus. A few later ones at zero base rate. Not worth changing anything. Good that you brought this up, because I haven't checked on them in a long time.

What about the ones paying at a zero base rate? Wouldn’t you consider changing to 0.5% base rate?

I bought some iBonds in 2013 and 2014 because they were yielding much more than any of the money markets/CDs at the time.

 

[Another Reader]

It's only a small amount. I wasn't exactly enthusiastic about the rate. I don't know how you exchange them. Don't you have to sell at the market price and buy new ones?

 

[audreyh1]

It's only a small amount. I wasn't exactly enthusiastic about the rate. I don't know how you exchange them. Don't you have to sell at the market price and buy new ones?

There is no “selling at the market”. You simply redeem the bonds as long as 12 months have passed. If less than five years you forfeit the last 3 months of interest. After 5 years you redeem principal plus all interest earned.

Yes, you have to buy new ones, and redeem your old ones whenever.

You are limited to $10K per person per year not including tax refunds, so if you plan to buy some anyway, you might not want to redeem older ones. We aren’t planning on adding, but wouldn’t mind improving what we have.

 

[Free bird]

Ibonds were sweet at the end of the 90s & early 2000s. Gor sum @ 3% base rate. The gubmt was crazy fools back then. I miss those crazy fools.

 

[Another Reader]

There is no “selling at the market”. You simply redeem the bonds as long as 12 months have passed. If less than five years you forfeit the last 3 months of interest. After 5 years you redeem principal plus all interest earned.

Yes, you have to buy new ones, and redeem your old ones whenever.

You are limited to $10K per person per year not including tax refunds, so if you plan to buy some anyway, you might not want to redeem older ones. We aren’t planning on adding, but wouldn’t mind improving what we have.

Ooops, I forgot about redemption...

I'm going to just leave them for now. I will look at them and at buying new ones when the base rate becomes more attractive.

 

[almost there]

Yesterday bumped the last of my 2.75% one bump 5yr CD's at Mountain America to 3.51% with 3 1/2 yrs to go.
Am also looking at Charles Schwab's 12 month CD @2.75%. Have a ton in a MM there earning 2%, so it seems like a good idea.
Then there is the 5yr batch at Ally bank paying 2% on a 5 yr with 2 yrs to go. Am thinking of paying the penalty in Jan after the annual Int is paid and shop around. Old enough to where the penalty isn't all that high........Just where I am at.............

 

[Golden sunsets]

There is no “selling at the market”. You simply redeem the bonds as long as 12 months have passed. If less than five years you forfeit the last 3 months of interest. After 5 years you redeem principal plus all interest earned.

Yes, you have to buy new ones, and redeem your old ones whenever.

You are limited to $10K per person per year not including tax refunds, so if you plan to buy some anyway, you might not want to redeem older ones. We aren’t planning on adding, but wouldn’t mind improving what we have.

Cashing them in though means you have to finally declare all that accumulated interest on your tax return right? And if you did cash them in you couldn't turn around and repurchase the same amounts if they exceeded $10,000 right?


Sent from my iPad using Early Retirement Forum

 

[audreyh1]

Cashing them in though means you have to finally declare all that accumulated interest on your tax return right? And if you did cash them in you couldn't turn around and repurchase the same amounts if they exceeded $10,000 right?


Sent from my iPad using Early Retirement Forum

Yes, you would miss out on the tax-free compounding of the interest accumulated so far.

 

[aaronc879]

I just put the minimum $10K into a 15 month CD at my local Credit Union at 3.15%. 6 month early withdrawal penalty.

 

[almost there]

Best I have seen on a 15 month......

 

[Momcpa]

Synchrony has a 15 month CD at 2.75%. $2,000 minimum.

Sounds pretty good to me. What do y'all think? Is Synchrony pretty reputable?

 

[Dtail]

Synchrony has a 15 month CD at 2.75%. $2,000 minimum.

Sounds pretty good to me. What do y'all think? Is Synchrony pretty reputable?

In the same league as Ally Bank. Should be good.

 

[audreyh1]

Synchrony has a 15 month CD at 2.75%. $2,000 minimum.

Sounds pretty good to me. What do y'all think? Is Synchrony pretty reputable?

Yes. They tend to have longer(larger) early withdrawal penalties than Ally. Is that one 6 months?

Yep -

Terms of more than 12 months but less than 48 months: 180 days of simple interest at the current rate.

 

[copyright1997reloaded]

4% Club is here

I just received an email from Connexus Credit Union regarding new rates:

12 months – 2.80% APY/Nominal rate = 2.772% - (Highest in the nation)

24 months – 3.20% APY/Nominal rate = 3.163%

36 months – 3.35% APY/Nominal rate = 3.309% - (Highest in the nation)

42 months – 3.35% APY/Nominal rate = 3.309% - (Highest in the nation)

60 months – 4.00% APY Nominal rate = 3.942% - (Highest in the nation and first to offer 4.00%!)

I haven't seen this mentioned (yet) on depositaccounts.com ...

Easy membership requirements.

ETA: I have not verified the "Highest in the nation" claim from the rep.

 

[ShokWaveRider]

I just received an email from Connexus Credit Union regarding new rates:

36 months – 3.35% APY/Nominal rate = 3.309% - (Highest in the nation)

42 months – 3.35% APY/Nominal rate = 3.309% - (Highest in the nation)

60 months – 4.00% APY Nominal rate = 3.942% - (Highest in the nation and first to offer 4.00%!)

I haven't seen this mentioned (yet) on depositaccounts.com ...

Easy membership requirements.

ETA: I have not verified the "Highest in the nation" claim from the rep.

Well Reported!!! you be the first to see the magic 4%.

 

[Henry Lili]

Well Reported!!! you be the first to see the magic 4%.

Yeah. That 4% got my attention.[emoji102]

 

[almost there]

2019 is looking good for 5yr 5% finally...........normal interest rates in the future. "The real rate for the entire 700-year history is 4.78%"

https://dailyreckoning.com/history-teaches-interest-rates-2/

 

[pb4uski]

I hope that you are right..... I'd be tempted to go all in with my fixed income allocation on 5% for 5 years.

 

[almost there]

History is on our side.........

 

[Chuckanut]

2019 is looking good for 5yr 5% finally...........normal interest rates in the future. "The real rate for the entire 700-year history is 4.78%"

https://dailyreckoning.com/history-teaches-interest-rates-2/

I hope you are correct. That would give us a fighting chance of beating inflation with some real gains after taxes.