former cd suggestions

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gerrym51

Full time employment: Posting here.
Joined
Mar 21, 2007
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559
well it happened. the CD i talked about on another thread. expired. it was 3.3 percent.

although i am a platinum member at bank of america the best rate i could get if i renewed was .45 for 4 years plus.

i opted to put the 75,000 dollars in my savings account paying .35 anyways.

my wife and i are looking for options. we would rather not let this extra money sit there.

the one proviso is this. MY WIFE insists on no other providers other than the 2 brokerage house we currently use-fidelity and troweprice.

so i'm open for suggestions with either one.

she is adamant about no more providers. i tried to talk about wellington and got a no-no new providers.
 
How about a CD with a credit union (pen fed) or Ally? Pretty simple to open a bank/credit union account.

If not, see if you can find a secindary market CD at one of your brokerages that you someone is selling. Sometimes you get slightly more yield that way.
 
What about making a CD ladder out of it? that may mitigate the current rates.
 
brewer12345 said:
How about a CD with a credit union (pen fed) or Ally? Pretty simple to open a bank/credit union account.

If not, see if you can find a secindary market CD at one of your brokerages that you someone is selling. Sometimes you get slightly more yield that way.
Click to expand...


sorry -no new institutions
 
look at PFF--etf for prefers--at fido you can buy with no transaction cost. Has more risk than a CD but yields are above 5. In yesterday's market chaos, price dropped less than a dime.
Nwsteve
 
nwsteve said:
look at PFF--etf for prefers--at fido you can buy with no transaction cost. Has more risk than a CD but yields are above 5. In yesterday's market chaos, price dropped less than a dime.
Nwsteve
Click to expand...

Way, way more risk than CDs. May or may not be appropriate for OP, but it needs to be said.
 
brewer12345 said:
Way, way more risk than CDs. May or may not be appropriate for OP, but it needs to be said.
Click to expand...

Brewer, what's your thoughts on WIW these days? I remember not long ago you said you had been buying some. Currently selling at a 11% discount. Probably not a good CD substitute for the OP as it dropped like a rock when the market crashed in 2008. But for some of us willing to take on a little more risk......do you like?

CEFs | Guggenheim Investments
 
Dawg52 said:
Brewer, what's your thoughts on WIW these days? I remember not long ago you said you had been buying some. Currently selling at a 11% discount. Probably not a good CD substitute for the OP as it dropped like a rock when the market crashed in 2008. But for some of us willing to take on a little more risk......do you like?

CEFs | Guggenheim Investments
Click to expand...

I have bought quite a bit of it. I have a strategy for CEFs (more fully described here Life, Investments & Everything: How to Buy a Dollar For 90 Cents) which involves finding fixed income CEFs which are not dogs but are selling at at least a 10% discount and hanging onto them until the discount closes. At the moment, WIW is the only CEF which meets my screening criteria, so I own a chunk.
 
obgyn65 said:
And why not ? I am happy with Edward Jones, as they always get me the best CD rates. All the interest amounts are paid directly into my BoA checking account.
Click to expand...

What kind of rate have you got recently? Just wondering.
 
What sort of risk are willing to take ? It's a big step going from a CD to wellington or even wellesley. Barclays and CITbank have online savings at 1%, Ally was also mentioned.
 
My wife and i have a lot of money already in funds.

we have decided to leave our cash in savings for now.

thanks for the replies
 
obgyn65 said:
And why not ? I am happy with Edward Jones, as they always get me the best CD rates. All the interest amounts are paid directly into my BoA checking account.
Click to expand...



the wife wants no new institutions. what the wife wants she gets.
 
Perhaps it is time to explore the institutions you use and if they are meeting your needs. I understand the need to keep it simple by keeping the number of institutions you use to a small number. However, are you getting value from them? If you have a savings account is it paying you for what you've left with them as well as some others savings bank could?

Ally is one example, so is American Express Bank. Both pay above market rates and you have easy access to your cash by linking your checking account to the savings account.

-- Rita
 
rec7 said:
That's not bad. I wonder what the 1 year CD's there are paying?
Click to expand...

For a brokerage CD (no early surrender allowed, even with a penalty), that is unacceptable interest rate/inflation risk to me. YMMV.
 
ally has a 5 year Cd for 1.5 percent. we have decided to leave the money in our savings account at .3 percent for the time being. if we found a really great rate someplace we would do it but ther is not any. well hold and see if rates go up in 2 years.
 
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