High(er)-rate CD deals

djr59 said:
I never play treasuries. How do you buy?
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Any broker will happily sell you some. Alternatively, you can set up a TreasuryDirect account with the US Treasury and buy bonds that way.
 
I have a treasury direct accounts but was never sure how to buy them. Will look. I still think a 3% taxable cd is better.
 
djr59 said:
I have a treasury direct accounts but was never sure how to buy them. Will look. I still think a 3% taxable cd is better.
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It depends on your aims and goals. Treasuries are a nice offset to an equity portfolio because they tend not to be too highly correlated with stocks and in times of market panic/chaos they particularly shine. That means they are easy to liquidate at good prices in a crash and rebalance to equities if you wish to do so.

However, if you rate shop CDs you can generally get a higher yield with no market risk vs. treasuries. So if you are looking for a safe place to stash some "oh excrement" money that you can access in a pinch and not lose too much to inflation, CDs are a better bet than Treasuries.

If we get to the point where I think interest rates have about peaked and are about to go the other way, I will be cashing in CDs and buying treasuries. At that point the early surrender option will have little value and treasury bonds offer you an option that CDs do not offer: you can sell appreciated treasuries after rates have fallen and convert interest income into capital gains income. This can be very attractive depending on your tax profile.
 
kaneohe said:
Glad you got on the train......cutting it pretty close there, or did you abandon leaving town for Xmas?:)
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I stopped by the co-op shared branch to make the deposit on my way to the airport and I called back Andrews while waiting for my flight. So yes, cutting it really close...:LOL:
 
Just wanted to inform those who are interested in 5 yr CD. Bank Popular Direct offers 2.25% APY, they have high financial health rating (5 stars) so far and FDIC.
 
JPMorgan Chase 3% 10-Year CD

I noticed on Fidelity that JPMorgan Chase is offering a 3% 10-Year CD although it doesn't appear that you have the ability to make any early withdrawals prior to maturity. I am considering moving some $ that is currently in a bond fund in my tIRA and Roth IRA to this but wanted to get some feedback from others as to whether this might be jumping the gun since I will be locked into this for 10 years (even though I have no plans of using these funds during that period). Thanks!
 
CountingDown2014 said:
I noticed on Fidelity that JPMorgan Chase is offering a 3% 10-Year CD although it doesn't appear that you have the ability to make any early withdrawals prior to maturity. I am considering moving some $ that is currently in a bond fund in my tIRA and Roth IRA to this but wanted to get some feedback from others as to whether this might be jumping the gun since I will be locked into this for 10 years (even though I have no plans of using these funds during that period). Thanks!
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Andrews Federal Credit Union has a 7 year cert. earning 3% that has mild early withdrawal fees. It is a little ornery joining but was worth it to me. Rates are rising, and I don't think I'd go 10 years today, and I might even rethink 7 years(but I did mine 6 months ago).
 
Ten years is a mighty long time. I do not think I would lock it up for that long.
 
audreyh1 said:
My account is still not open, even though my application was approved several days ago. I don't think I'm going to be able to get funds transferred in time with banks being closed on Monday. This has taken far longer than I expected.
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Well, I had given up on Andrews since I got no indication on how to set up my account online, and couldn't reach anybody by phone (>1 hr waits on the phone don't work when you are surrounded by family during the holidays and switching lodging several times). So when they sent me a survey, I expressed my frustration with the process, laid out my plans, and explained that I was out of time to transfer funds to buy the CDs I wanted.

To my great surprise, I got a call from an Andrews FCU branch manager last week who had read my survey comments, and told me I was still eligible to open those CDs I wanted since I had opened my account before 12/31/16 with intent to buy those Holiday Special CDs. He helped me set up online access, and asked me which CD I wanted. I was able to transfer the funds and saw the CD available in the list for me to open. Was able to complete my transactions online.

So, I was able to get the certificates I wanted after all. That was really a nice save for both of us. I was very impressed to get a personal phone call from Andrews FCU and have them set things up for me to correct the problems I encountered.

Oh this is funny! Andrews FCU has just made that 84 month 3% CD available again according to Deposit Accounts. https://www.depositaccounts.com/banks/andrews-federal-credit-union/offers/

Yep - for both IRA and regular accounts. It's no longer a special, but part of their normal lineup.
https://www.andrewsfcu.org/personal/checking-and-savings/share-certificates.html
 
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Per depositaccounts.com, the 7 year 3 percent CD's at Andrews CU are still available. Minimum deposit is $1,000.
 
Audrey
Thanks for the update. Glad to hear AFCU finally came through. It's a good lesson for anyone trying to do business with them. I tried to purchase a second IRA CD online and the process was aggravating so I downloaded the form and converted it to a fillable PDF and went into the branch since I am local. In spite of a bad experience with them on a mortgage application I am satisfied overall so far. I received an invitation to be a secret shopper for them so it appears they are aware that they have some issues.
 
Andrews FCU

Thanks for the responses. It definitely seems like Andrews FCU would be the way to go except that I was trying to avoid having to deal with transferring funds to another institution (I already have CDs at PenFed and NWFCU) and have a few more months before I should transfer $ out of Fidelity as a result of a cash bonus I received last year for transferring additional $ there. I do think I will hold off on the 10-year CDs though. Thanks again for the input.
 
Another Reader said:
Per depositaccounts.com, the 7 year 3 percent CD's at Andrews CU are still available. Minimum deposit is $1,000.
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It did disappear for a while after the New Years weekend, and the 84 month certificate had a much lower rate. I know because I checked. I think it just became available as part of the standard offering.

If you read the deposit accounts blog the article announcing the availability is dated today.
 
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Andrews FCU CD Rate Lowered

The 84 mo CD on the AFCU website has been reduced from 3% to 2.2%. This is very disappointing since I was stalking CD rates in anticipation of higher rates and found the opposite. I am still hoping to find some rate increases after April 1st since I have come to the end of the road on my 4% NFCU CD and need to reinvest.
 
If you don't live in Utah macu isn't an option it would seem.
 
I live in SoCal and put $265k in last week..........
Not a problem..........
 
Are you a member of the American Consumer Council? I just found out that qualifies you. I forgot about that.
 
Thanks Almost there, I took your advise on MACU and open the 5yr CD
 
almost there said:
This one bump 2.75% 5 year CD is a no brainer..........
https://www.macu.com/bump
Not sure what your waiting for?
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Well no point doing anything until it matures in 2 weeks. Gotta milk the last penny outta that 4 per cent rate! That MACU deal is better than anything else I've seen so thanks for the reminder. I hate to open another CU account but I'll do it if they make me.
 
Dunno if this is too dumb a question to ask... OK to ignore...

Why does one buy an extended (more than 6 month) CD in the under 3% rate, when IBonds currently yield 2.78%, and adjust to the CPI? Yes, Bond held under 5 years lose thee months interest when redeemed early.
:confused:
 
Bonds do not have insurance on your investment. That is why for my fixed income part of portfolio I would rather have CD especially when the difference in return is so tiny.
 
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