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

[audreyh1]

Don't you have to cancel the existing no penalty one and establish a new no penalty one?

Yes, you redeem, then purchase a new one. I was using the term “upgrade” for that process. It’s near instantaneous online if you use Ally checking or savings - not savings probably has some transaction limit.

 

[Graybeard]

Ally is way behind. Three month Treasury is now 1%.

That rate is annualized, isn't the coupon 1/4 of 1%?

 

[audreyh1]

To compare rates between different vehicles and maturities you always use annualized rates.

Quotes on treasury rates are given annualized.

 

[aja8888]

That rate is annualized, isn't the coupon 1/4 of 1%?

Yes, that's how it works.

 

[PERSonalTime]

Ally Bank is finally increasing the savings rate to 0.60%. I was hoping it’d be a larger increase since they delayed it so long.

What about their CD rates?

 

[Dtail]

Yes, you redeem, then purchase a new one. I was using the term “upgrade” for that process. It’s near instantaneous online if you use Ally checking or savings - not savings probably has some transaction limit.

Understand.
Didn't Ally in the past always have their no penalty CD higher than their money market account?

 

[Montecfo]

Have not had money at Ally for a very long time. And looks like no reason to return.

Then again none of these accounts are compelling rate-wise at the moment.

 

[Eucerin]

If a CD is call protected you are guaranteed that you can hold the CD to maturity. If it is not call protected the bank could “call” (cancel) the CD before maturity and give you your money back along with the interest earned. Up to that point. It really only makes sense for the bank to call a CD if rates have dropped and they can borrow the money more cheaply. We were looking at those Fido call protected vs non protected CDs the other day. The 5 yr call protected CDs were 3.2% vs 3.35 for non-protected. You could think of the difference of 0.15% as insurance. Call protected is <slightly> lower risk / lower reward.

You have explained nicely, simple and easy to understand. Thank you so much!!!
Have a great day!!! The market is up, that's a good start

 

[Eucerin]

Not a MYGA, you are thinking Life SPIA. Just look at a MYGA exactly like a CD but with the interest being deferred until you cash it in.

I got caught up by the name - multi year guaranteed annuity. I did some research and understand it is annuity version of CD with multiple year terms. The details behind scenes are more complicated than CD, but Yes, on the surface it is similar to CD.
Thank you for your help!

 

[jazz4cash]

The market is up, that's a good start

Well, that didn’t last long! Guess there’s still time for a reversal. It feels healthier going back and forth vs. going straight down.

 

[audreyh1]

Understand.
Didn't Ally in the past always have their no penalty CD higher than their money market account?

Yes, they used to be slightly higher. Occasionally significantly higher as a “special”.

 

[Chuckanut]

Just in time today, I got promotional material in the US Mail from both Ally and Penfed. Sorry, boys and girls, too little, too late.

I just put in purchase orders for a 6 month and a 12 month T-bill. I expect to earn at least 50% more than the best deal either of these banks pay.

 

[audreyh1]

Yes, I imagine I’ll be withdrawing funds over the next few months and piling into T-bills.

 

[Hopeful]

I just got notice that Live Oak Bank increased their savings rate to 0.8%

 

[ShokWaveRider]

As usual we are way behind the eight ball. Here are the current Canadian GIC Rates. GICs are Canada's equivalent to CDs.

https://www.moneysense.ca/save/investing/best-gic-rates/

 

[PatrickA5]

I've noticed that money market funds are starting to pay a little dividends (interest). Fidelity's SPRXX was up to .44% from basically zero at the start of the month. It would be nice if these would, once again, be competitive with bank saving rates.

 

[jazz4cash]

As usual we are way behind the eight ball. Here are the current Canadian GIC Rates. GICs are Canada's equivalent to CDs.

https://www.moneysense.ca/save/investing/best-gic-rates/

Huh? I’m seeing 3.35% for 1 yr! Am I reading that right?

 

[almost there]

From above link...
1-year: 3.25%
2-year: 3.90%
3-year: 4.10%
4-year: 4.15%
5-year: 4.15%

Yep, over here waiting............
Will do some 1, 3 and 6 month CD's
when the rollover check shows up next week.
Then hopefully start locking things up.
Am pretty much liquid with the IRA..
Past 2 months had 3 large CD's expire...
"The waiting is the hardest part"

 

[Montecfo]

CFG Bank MM account is now at 1.02 pct. Since I have an account there and at T-Mobile Money (1.00 pct), looks like CFG is where I will be staging my ST cash.

 

[aja8888]

Ally now offering 20 month 2.0% CD.

offer:

https://www.ally.com/go/bank/20m-select-cd/?CP=EML400002574

 

[Dash man]

Ally now offering 20 month 2.0% CD.

I saw that, but a one year treasury is paying 2%.

 

[aja8888]

I saw that, but a one year treasury is paying 2%.

I posted this for the CD buyers.

 

[MandM]

For CD buyers, I moved money from Ally No Penalty CD this week to Fidelity Brokerage and purchased a 2 yr CD from Ally Bank at Fidelity with a 3% rate. Right now the current list of brokered CDs for 2 yrs listed are 2.9%. 3yrs are at 3.15%

I would strongly encourage those who have CDs at banks maturing and also have brokerage accounts to start reviewing Brokered New Issue CDs as they are hard to beat currently by the banks or Credit Unions.

 

[disneysteve]

I would strongly encourage those who have CDs at banks maturing and also have brokerage accounts to start reviewing Brokered New Issue CDs as they are hard to beat currently by the banks or Credit Unions.

+1


Once I discovered brokered CDs, I will never go back. And then discovering how easy it is to buy Treasuries as well. Buying CDs direct from the banks is a waste unless you catch a local branch running a great promo, which does happen from time to time.

 

[explanade]

I saw that, but a one year treasury is paying 2%.

Is there a limit on how much in Treasuries you could buy at a time?

Do those Treasury Direct accounts just give you the interest at maturity and you can get the principal and interest transferred back to a bank account by ACH?