Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here

[Drake3287]

Likely not going to happen. If we go back a month or two, we can find the same post by someone waiting for 6% CDs. What's happened since then? Fed continued increases, CD yields heading lower. The peak yields at and just above 5% have likely already been seen.

There is certainly nothing shabby about 4.3% in money market yields...until the Fed pauses or announces a rate cut.

We'll see.

I certainly don't have a crystal ball but I find it hard to believe we're not going to be seeing 5% in the coming few months. With 4.75% already being offered on a 12 month CD even before this latest Fed increase, 5% can't be too far off with the Feds continuing to raise rates for awhile. I do agree that it'll probably never get above the 5% range.

 

[Montecfo]

I certainly don't have a crystal ball but I find it hard to believe we're not going to be seeing 5% in the coming few months. With 4.75% already being offered on a 12 month CD even before this latest Fed increase, 5% can't be too far off with the Feds continuing to raise rates for awhile. I do agree that it'll probably never get above the 5% range.

Possibly for short-term money. Unlikely IMHO for 5 yeara+ type money.

 

[John Galt III]

Possibly for short-term money. Unlikely IMHO for 5 yeara+ type money.

Yeah, I went onto the Vanguard website a few days ago, and the best interest they had for a new issue 5 year non-callable CD was 3.75 % ! I see better rates at credit unions, for 5 year term non callable CDs.

 

[audreyh1]

I certainly don't have a crystal ball but I find it hard to believe we're not going to be seeing 5% in the coming few months. With 4.75% already being offered on a 12 month CD even before this latest Fed increase, 5% can't be too far off with the Feds continuing to raise rates for awhile. I do agree that it'll probably never get above the 5% range.

Possibly for short-term money. Unlikely IMHO for 5 years+ type money.

Yeah, I went onto the Vanguard website a few days ago, and the best interest they had for a new issue 5 year non-callable CD was 3.75 % ! I see better rates at credit unions, for 5 year term non callable CDs.

I think folks really have a hard time getting their head around the idea that intermediate term money (5 years) may yield less than short-term money, but it happens all the time when the Fed is raising rates. If you don’t pay attention to the yield curve and understand what drives it, you will be constantly mystified.

 

[target2019]

Schwab Money Funds all here: https://www.schwab.com/money-market-funds

But no SNOOZ!

I think he was joking... ROFL

I know he was joking

 

[swk7907]

I think folks really have a hard time getting their head around the idea that intermediate term money (5 years) may yield less than short-term money, but it happens all the time when the Fed is raising rates. If you don’t pay attention to the yield curve and understand what drives it, you will be constantly mystified.

The flip side though is that everybody seems to expect intermediate and long term rates to eventually plummet back to the historic lows of the past decade. Due to this we hear a lot of fear about missing the chance to lock in before rates go back down. Even if inflation is brought back under control the fear of inflation will remain. Cutting short term rates due to a recession doesn't mean that mid term rates will go back as low as they were. I have no problems keeping cash in money market funds now. I'm confident 5-10 year rates won't go back to 1-2% even once the fed starts cutting again.

 

[RetiredAndLovingIt]

This is a good one, I'd lock a lot of money for this rate in a minute if I lived in Indiana.
Deal Summary: 60-71 month CD, 5.27% APY, $500 minimum deposit.
Availability: Twelve northeast Indiana counties.

https://www.depositaccounts.com/banks/via-credit-union/offers/

 

[jldavid47]

The flip side though is that everybody seems to expect intermediate and long term rates to eventually plummet back to the historic lows of the past decade. Due to this we hear a lot of fear about missing the chance to lock in before rates go back down. Even if inflation is brought back under control the fear of inflation will remain. Cutting short term rates due to a recession doesn't mean that mid term rates will go back as low as they were. I have no problems keeping cash in money market funds now. I'm confident 5-10 year rates won't go back to 1-2% even once the fed starts cutting again.

While I generally agree with you I am still putting money into 6 month, 1 year and 2 year (and sometimes longer) treasuries, agencies and CDs. Why? Because one lesson I've learned the hard way over the years is that the market doesn't care what I think is going to happen. I'm not afraid of rates going back to 1-2% (unless the Fed decides to go all in on QE again and that ain't happening), I'm just diversifying my risk over time because I don't know anything.

 

[swk7907]

While I generally agree with you I am still putting money into 6 month, 1 year and 2 year (and sometimes longer) treasuries, agencies and CDs. Why? Because one lesson I've learned the hard way over the years is that the market doesn't care what I think is going to happen. I'm not afraid of rates going back to 1-2% (unless the Fed decides to go all in on QE again and that ain't happening), I'm just diversifying my risk over time because I don't know anything.

Agreed. I just think many people have so much FOMO they are tempted to lock more money into longer dated maturities sooner than they should. Following a plan which takes emotion out of the equation, as you suggest, is the best option 95% of the time.

 

[almost there]

The market thinks they know what's going to happen. Lowering 5 year rates early with more fed hikes to come?.
Not common at all in reality. But here we are.
Banks will continue to raise rates as brokerage houses lower them.
As banks always lag brokered CD's in both directions. Up and Down.
Not sure they got it right this time though. Lowering long term so early with more hikes in 2023.
Time will tell.
And I am 99% sure we will never see artificially low rates again.
Capitalism simply does not operate on zero % interest.
Not in the past 3000 years any way. We tried it, and look what happened. LOL LOL
Here we are. Am pretty sure we will go back to historic / normal rates going forward. Just my 2.

 

[audreyh1]

I tend to agree. 3% Fed Funds rate used to be the bottom like it was during the 2000-2003 recession.

 

[NomDeER]

The flip side though is that everybody seems to expect intermediate and long term rates to eventually plummet back to the historic lows of the past decade. Due to this we hear a lot of fear about missing the chance to lock in before rates go back down. Even if inflation is brought back under control the fear of inflation will remain. Cutting short term rates due to a recession doesn't mean that mid term rates will go back as low as they were. I have no problems keeping cash in money market funds now. I'm confident 5-10 year rates won't go back to 1-2% even once the fed starts cutting again.

Does "everybody" really expect intermediate and long term rates to plummet back to the historic lows of the past decade? I haven't seen very many people saying that. What a lot of people do seem to think is that we aren't going up more than 50-100 bps more and that's probably not going to be there for more than a year, with rates decreasing somewhat after that, but not plummeting to the very low levels of the last decade. And a lot of people just don't know what to expect, which may be why there are so many callable brokered CDs.

If banks thought that we'd be near zero or 1% in the next couple of years, they would not be offering the CD yields they are offering for more than 2 years. The yields would be lower.

But, if someone is just looking for yields for the next year and perhaps want some cash on hand, then I think it makes sense to keep money in a higher-yield money market.

To me, the fact that the Fed plans to have 2-3 more increases in the next six months doesn't have a lot to do with what is going to happen to the yields for CDs with terms that are several years out or more. And that information about the expected increases is already baked into CDs currently being offered.

I've been slowly laddering and plan to continue to do that.

 

[Car-Guy]

What a lot of people do seem to think is that we aren't going up more than 50-100 bps more and that's probably not going to be there for more than a year, with rates decreasing somewhat after that, but not plummeting to the very low levels of the last decade.

If banks thought that we'd be near zero or 1% in the next couple of years, they would not be offering the CD yields they are offering for more than 2 years. The yields would be lower.

But, if someone is just looking for yields for the next year and perhaps want some cash on hand, then I think it makes sense to keep money in a higher-yield money market.

I think that is all correct!

 

[njhowie]

If banks thought that we'd be near zero or 1% in the next couple of years, they would not be offering the CD yields they are offering for more than 2 years. The yields would be lower.

Why do you think so many brokered CDs more than 2 years out are callable?

 

[Car-Guy]

Why do you think so many brokered CDs more than 2 years out are callable?

Personally, at today's rates, I would rather just put my money in MM's rather than mess with callable CD's.

 

[NomDeER]

Why do you think so many brokered CDs more than 2 years out are callable?

Because they think that rates are going to go down but are not sure how much or when so they want the ability to call. That doesn't mean they think that interest rates are going to drop to what they were a year or two ago.

The non-brokered and non-callable CDs being offered at banks do not indicate that the banks expect interest rates to suddenly plummet to next to nothing. My bank (Discover) is offering 5 year CDs at 4.4% and some banks are doing better. To me, that indicates that they are not looking for rates to plummet.

I do wonder how many people are buying these callable CDs. If I were considering something callable right now, I would want more yield in return for the call.

 

[Car-Guy]

Just noticed Schwab has a 5yr new issue non callable CD for 4.6%... That's a change from recent weeks/months and helps flatten the curve.

So for those you that want to lock in a little better longer term rates, this may be your chance. Or you can roll the dice and wait a while longer.


EDIT: Forget it, already gone! I'm not sure how long it was available but it was gone ~10 mins after I first noticed it.

 

[Gotadimple]

Live Oak Bank increases rate on High Yield Savings to 3.5% (was 3.10). Their strategy seems to be to offer 6 month and 12 month CDs at attractive rates (4.35/4.60), while longer term CDs only earn 2.0%

- Rita

 

[John Galt III]

Scored at Andrews FCU today for a 7 month 'inflation buster' CD at 5.0 %. Yeehah ! Hoping rates are still good 7 months from now. Who knows. Rolling the dice, lol.

 

[Ready]

Scored at Andrews FCU today for a 7 month 'inflation buster' CD at 5.0 %. Yeehah ! Hoping rates are still good 7 months from now. Who knows. Rolling the dice, lol.

Curios why you chose that one over the 22 month 5% CD at Utah First?

 

[John Galt III]

Curios why you chose that one over the 22 month 5% CD at Utah First?

The Utah deal is great, but I just don't want to add yet another financial institution to my portfolio. I already have seven, lol. That's enough to keep track of.

 

[explanade]

Anyone go for the JP Morgan Chase or Morgan Stanley Private Bank offerings.

No caller protection but FDIC for both.

At this moment on Fidelity, those are the only two institutions I've ever heard of. A lot of small regional banks otherwise.

 

[njhowie]

Anyone go for the JP Morgan Chase or Morgan Stanley Private Bank offerings.

No caller protection but FDIC for both.

At this moment on Fidelity, those are the only two institutions I've ever heard of. A lot of small regional banks otherwise.

Take the highest yield for the maturity you want. All of the CDs at Fidelity are FDIC insured.

I'm sure there will be a new stock from bigger banks you've heard of soon.

 

[HealthyFuture]

Utah First has 5% for 22 months.

How do you assess whether a given institution is ‘safe’ to invest your money in if it’s a place you haven’t heard of before? I suspect this may be answered elsewhere in the forum, but I’m not sure how to query for that.

 

[Drake3287]

How do you assess whether a given institution is ‘safe’ to invest your money in if it’s a place you haven’t heard of before? I suspect this may be answered elsewhere in the forum, but I’m not sure how to query for that.

In theory, if it's FDIC insured you're as safe as it being at BofA or Wells Fargo. I've been using smaller local banks and Savings and Loans for years without tissue. As a matter of fact, these smaller banks treat you like a real person and not a number like the big banks do.

I have several $100k+ CD's in locals banks which you've probably never heard of and I've never lost a minute of sleep over it. These local banks are even paying the highest rates these days. More so than the online banks even.