CD advice

[Earl E Retyre]

Those are the two CD specials they are running right now. I have several accounts with them. I've arranged for the interest on one of my five year CDs to go into my checking account every quarter. I get wonderful personal service at the Dallas County branch. You will need to contact them about on-line accessibility.

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So, I just called First Guaranty Bank, and they said you have to go to a branch to open an account. You cannot do it online. That would be a 2.5 hour drive for me round trip. At first I was thinking it is worth the drive in order to get the 3.75% rate. But then I called back and asked what happens when the CD matures and they said I would have to drive back to the branch to get my money (if I did not want it to roll over). Since I do not know where I will be living in 5 years, I decided to forego this great rate. I think I am going to wait until interest rates go back up at Vanguard. It is odd to me that interest rates seem to be declining. Hopefully they climb back up again some time this year.

 

[njhowie]

It is odd to me that interest rates seem to be declining. Hopefully they climb back up again some time this year.

Folks are worried about what comes next ==> flight to quality/safety. Even off the highs, yields today are not bad at all for fixed income folks. You have to keep in mind where rates have been for most of the past 10 years, and what rates look like in other developed economies around the world. As a result, there is lots and lots of demand for US treasuries, CDs, and debt. The Fed has also made it known that they do not see any necessity to raise rates further at this time.

 

[teej1985]

BTW, Pen Fed acquired an antique credit union charter that allows them to offer membership freely to anyone. No idea what this means for rates, but it will be interesting to watch.

Pen Fed was already bascially open to anyone - anyone could donate to the NFMA.

 

[Earl E Retyre]

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My local bank is now offering a five year CD at 3.75% and a five year variable CD where the rate will increase or decrease with the Fed Fund Rate [but never go below the initial 3.50%.]

https://www.fgb.net/our-cds-are-hard-to-top

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Just wanted to say thanks, Helena. I just opened 2 CDs - the 1st at the 3.75% and the 2nd at the 3.5% variable. They do not allow opening new CDs online. So, it was an 80 minute drive to the closest local branch. But, the drive was worth it to me since there are no other offerings I am aware of that are as good. I would have not known about this deal if not for your post. Thanks.

 

[mn54]

if you don't want to go out 5 years columbia cu is still offering 30 month cds for 3.6%.