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Seems Like CD Rates ARE creeping up.
Old 05-03-2018, 10:33 AM   #1
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Seems Like CD Rates ARE creeping up.

Here is PenFed's Latest. 12 Month for 2.15 seems pretty reasonable.

https://www.penfed.org/accounts/mone...SAAEgIQ5vD_BwE
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Old 05-03-2018, 10:49 AM   #2
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Originally Posted by ShokWaveRider View Post
Here is PenFed's Latest. 12 Month for 2.15 seems pretty reasonable.

https://www.penfed.org/accounts/mone...SAAEgIQ5vD_BwE
I think the 1 yr quote is 2.10. Fidelity has 1 yr new issues for 2.15.
Relating back to your other thread, I think the PenFed 5 yr of 3% from 5 years ago was an unusual circumstance that many on this site jumped on. Others can comment.
Edit - I see you now stated you are one of the PenFed holders. Okay so you know......
I think that PenFed's current rates are not that unusual.
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Old 05-03-2018, 12:46 PM   #3
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To me, this is much faster than a creep. I started another thread about taking the EWP hit on a 3 yr CD I bought just 10 months ago. This reinforced the value of having a modest EWP for me.
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Old 05-03-2018, 12:49 PM   #4
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Just follow this site: https://www.depositaccounts.com/blog/

Yes, rates are moving up.
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Old 05-03-2018, 03:38 PM   #5
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Sweet spot seems to be 2-3 years. Yield curve flattens out quickly once you get to 5 and the payoff from 10-30 is almost nothing.
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Old 05-03-2018, 07:53 PM   #6
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Sweet spot seems to be 2-3 years. Yield curve flattens out quickly once you get to 5 and the payoff from 10-30 is almost nothing.
+1
One would hope for a minimum]of 20 bps extra per year.
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Old 05-03-2018, 09:19 PM   #7
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Sweet spot seems to be 2-3 years. Yield curve flattens out quickly once you get to 5 and the payoff from 10-30 is almost nothing.


+2
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Old 05-06-2018, 07:57 AM   #8
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For folks who are buying new issue CDs through their broker, if you have free time during the day, consider skimming through the secondary market offerings - on Friday I was able to get 3% for (exactly) 3 years through Fidelity, even after the $1/CD commission.
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Old 05-06-2018, 11:05 AM   #9
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Even the money market settlement fund is giving a better yield now! 1.59% for vanguard's fed money.
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Old 05-06-2018, 06:14 PM   #10
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Is it better to find a CD that pays monthly interest?
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Old 05-06-2018, 06:25 PM   #11
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Is it better to find a CD that pays monthly interest?
I think most do. Not sure about brokered, but regular CDs do. I have the interest put into an account monthly. Of course it is not compounded that way.
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Old 05-06-2018, 06:58 PM   #12
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Using Fidelity brokered CD's as an example, the interest payments are a mix of monthly and semi-annual in the 2-3 year range.
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Old 05-06-2018, 08:00 PM   #13
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If you don't need to use the dividends it doesn't matter much but be sure to compare apy and not just the interest rate.
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Old 05-06-2018, 09:36 PM   #14
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Is it better to find a CD that pays monthly interest?
I donít care about that.
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Old 05-07-2018, 06:46 AM   #15
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None here in the Netherlands & Belgium do, all do it yearly.
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Old 05-11-2018, 03:33 PM   #16
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CDs at Schwab are yielding 3.2% for 5 years and, I think, 2.9% or 2.7 for 3 years.
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Old 05-11-2018, 03:42 PM   #17
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Brokered? Or New Issue?
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Old 05-11-2018, 03:43 PM   #18
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New issue. Several pay semi annually and a couple monthly.
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Old 05-11-2018, 03:54 PM   #19
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It appears to me that a great majority are buying CD's in the 2 year range. Personally I'm keeping to my 5 year ladder approach. With current, better , core yields it really doesn't matter what payout schedule is used.
Keep in mind that the Fed may be using current increases as a hedge against future downturns. Who knows?
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Old 05-11-2018, 04:32 PM   #20
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It appears to me that a great majority are buying CD's in the 2 year range. Personally I'm keeping to my 5 year ladder approach. With current, better , core yields it really doesn't matter what payout schedule is used.
Keep in mind that the Fed may be using current increases as a hedge against future downturns. Who knows?
I've been pondering this too. Tough to stick with 5 years when it seems like rates have nowhere to go but up, OTOH that's mere guessing.
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