money market or cd

[frank]

I have a sizable cd coming due at Penfed on Dec. 5. trying to decide whether to go for cd or money market to park funds for a while to see if cd rates go up. I can get 2.10 or 2.25 in money markets for 12 months. Do you think I should lock in now with cd or park in money market?

 

[Aerides]

I would not lock in now, as there's a december fed rate increase expected. Maybe go with the ally no penalty, which is 2.25, and then wait for a month or three.

 

[Dtail]

I would not lock in now, as there's a december fed rate increase expected. Maybe go with the ally no penalty, which is 2.25, and then wait for a month or three.

+1

 

[REWahoo]

I would not lock in now, as there's a december fed rate increase expected. Maybe go with the ally no penalty, which is 2.25, and then wait for a month or three.

+2

 

[USGrant1962]

I would not lock in now, as there's a december fed rate increase expected. Maybe go with the ally no penalty, which is 2.25, and then wait for a month or three.

Why bother with a CD when Vanguard Prime Money Market is paying 2.32 and likely to continue to creep upward?

 

[frank]

can you withdraw your earnings monthly or how is that done with vanguard? how is your interest compounded, monthy, quarterly, etc?

 

[jazz4cash]

The VG Prime MM looks good or several of the online banks have no-penalty CDs at >2%

 

[ripper1]

Was going to do a 1-5 cd ladder at connexus at end of year when 5yr penfed cd's are up but now a little disappointed that the 5yr at connexus went down from 4% to 3.5%. Might just park it somewhere for a while.

 

[ripper1]

Discover Bank premium savings is paying 2%.

 

[MarieIG]

I am going to look for a six to eight month CD after the December rate hike.

 

[ripper1]

Why bother with a CD when Vanguard Prime Money Market is paying 2.32 and likely to continue to creep upward?

Where there is the .16 e/r....just saying

 

[ShokWaveRider]

can you withdraw your earnings monthly or how is that done with vanguard? how is your interest compounded, monthy, quarterly, etc?

It is a MM you can take it out whenever you like.

 

[tulak]

Where there is the .16 e/r....just saying

The yield is after expenses.

 

[fosterscik]

Ignore - VMMXX earnings are reported as ordinary dividends and taxable.

 

[tulak]

can you withdraw your earnings monthly or how is that done with vanguard? how is your interest compounded, monthy, quarterly, etc?

Vanguard’s MM fund compounds interest daily.

 

[target2019]

can you withdraw your earnings monthly or how is that done with vanguard? how is your interest compounded, monthy, quarterly, etc?

Best to go to the site and understand the investment, find answers.

https://investor.vanguard.com/mutual-funds/profile/overview/vmmxx

I hold two Vanguard tax-free MMFs. I have checks for both, and can set up automatic withdrawals.

 

[ShokWaveRider]

Does their income go towards MAGI for ACA Purposes?

 

[target2019]

Does their income go towards MAGI for ACA Purposes?

The interest/dividends from our Vanguard muni MMFs went on line 8b.
I am covered by spouse's health insurance, and not really up on all the ACA questions.

 

[USGrant1962]

Does their income go towards MAGI for ACA Purposes?

Yes, tax free interest is on of the things added back to AGI to get MAGI.

 

[Montecfo]

I am going to look for a six to eight month CD after the December rate hike.

Treasuries are probably a better bet for that time frame.

 

[Spanky]

I have a sizable cd coming due at Penfed on Dec. 5. trying to decide whether to go for cd or money market to park funds for a while to see if cd rates go up. I can get 2.10 or 2.25 in money markets for 12 months. Do you think I should lock in now with cd or park in money market?

If you could get over 2% in MM, why not switch to that after your CD expiration?

Mine will be expired in January. I will just switch over to MM or ultra-short term bond fund.

 

[frank]

I am thinking about the money market for the short term at 2.1 I can hold off to see if the rates improve. I was wondering if anyone had any guesses as to how high the cd's might go before diving back in or how long to wait?

 

[lucky penny]

I have a sizable cd coming due at Penfed on Dec. 5. trying to decide whether to go for cd or money market to park funds for a while to see if cd rates go up. I can get 2.10 or 2.25 in money markets for 12 months. Do you think I should lock in now with cd or park in money market?

I'm in the same boat (like others on this forum who learned about these 3% CDs here 5 yrs ago). I bought several, first one matures on Dec 12. I'm tempted to roll it over. Why does everyone think the fed rate will increase and if it does, how likely is it that CD rates will rise?

 

[jazz4cash]

I am going to look for a six to eight month CD after the December rate hike.

Andrews FCU still has 8 months @ 2.86 and 9 months @ 2.75, but these are not open to IRA funds.

 

[Debinnov a]

It is hard to know what to do with Pen Fed 3% cds that are maturing. This is a sizable amount and I'm currently retired with no pension and no soc. sec. yet. Lucky to get the 3% for 5 years and the difference between 2% (savings acct) and 3% (cd) means a lot more income for me. Decisions Decisions. I think I may commit some to 3% and stash some in a 2%+ savings to see if rates go up again after Dec. I was so hoping for 4%..... Does anyone think It is possible that if feds don't raise again in Dec., that we could lose the 5 year 3% rate? That's what I'm afraid of.