Best CD, MM Rates & Bank Special Deals Thread 2023 - Please post updates here

[flyingaway]

I think treasuries are a better deal with those CD rates....more liquid too.

It is a little complicated to figure out the exact returns for secondary market treasuries at Fidelity. Can you buy treasuries in auction at Fidelity?

 

[audreyh1]

It is a little complicated to figure out the exact returns for secondary market treasuries at Fidelity. Can you buy treasuries in auction at Fidelity?

Yes, it’s quite straightforward. Look at the new issues list under fixed income. Treasuries appear a few hours after each auction is announced and you can place your order ahead. Units of $1000.

 

[jazz4cash]

I am considering the 5 year Athene (A) MYGA. 6.15 is hard to overlook. Interest withdrawals are allowed.

Where are you looking to buy it?
I am interested in this also. I was all set to buy B++ Canvas Annuity 5 yr@6.5% but 35bps is reasonable cost far the higher rated issuer. Canvas sold directly so it means another account which I’d prefer to avoid.

 

[ShokWaveRider]

Where are you looking to buy it?
I am interested in this also. I was all set to buy B++ Canvas Annuity 5 yr@6.5% but 35bps is reasonable cost far the higher rated issuer. Canvas sold directly so it means another account which I’d prefer to avoid.

https://www.blueprintincome.com/fixed-annuities

I am still vacillating tough. I really do not want to do anything out to 5 years before January 2024.

 

[pb4uski]

I think treasuries are a better deal with those CD rates....more liquid too.

From what I was seeing building a ladder for a friend this morning brokered CDs, even non-callable, were at better yields than similar term treasuries.

One other thing that I learned. The Schwab CD Ladder Builder tool seems to be convenient but suboptimal. I noticed that I could find better options than the CD Ladder Builder tool offered me for a particular term if I just did a search for CDs.

 

[Dtail]

From what I was seeing building a ladder for a friend this morning brokered CDs, even non-callable, were at better yields than similar term treasuries.

One other thing that I learned. The Schwab CD Ladder Builder tool seems to be convenient but suboptimal. I noticed that I could find better options than the CD Ladder Builder tool offered me for a particular term if I just did a search for CDs.

The Fidelity CD build ladder tool has the same issues in not showing all the best choices.

 

[pb4uski]

The Fidelity CD build ladder tool has the same issues in not showing all the best choices.

I spoke with someone at Schwab. I was using the ladder tool to build a 5-year CD ladder with 10 rungs. One possible issue is that the tool only offers you new issues and not secondary issues. I usually check the secondary issues checkbox but it might be that I didn't this time. Another is that the tool is very literal and would only present issues maturing in November or May whereas when I sarch I will accept issues a month or two on either side of November or May.

Anyway, after all of that the 10-rung, 5-year CD ladder had a weighted average yield of 5.38% but it did include 5 callable CDs.

 

[explanade]

You folks are looking to lock in 5-year CDs because you anticipate Fed lower rates next year?

 

[jazz4cash]

https://www.blueprintincome.com/fixed-annuities

I am still vacillating tough. I really do not want to do anything out to 5 years before January 2024.

I am only seeing 6.1 on the Blueprint site but that includes a withdrawal benefit. Why are you vacillating? Do you believe rates will be the same or higher in 1,2, or 3 years? One of the nice features about most MYGA products is the rate lock and free look. This Athene MYGA has rate lock for 60 days from application. Then you have free look of 20 days. If you apply today you have 60 days to fund the premium. That would take you out to Jan ‘24. Then you have another 20 days to cancel (e.g. if rates are higher in Jan).

 

[jazz4cash]

You folks are looking to lock in 5-year CDs because you anticipate Fed lower rates next year?

I am looking to lock in 5-yr rates because I do not know what the Fed will do or how the markets (which are not controlled by the Fed) will react. I rely on laddering to mitigate rate volatility but todays rates are the highest in decades so I am leaning in.

 

[ShokWaveRider]

I am only seeing 6.1 on the Blueprint site but that includes a withdrawal benefit. Why are you vacillating? Do you believe rates will be the same or higher in 1,2, or 3 years? One of the nice features about most MYGA products is the rate lock and free look. This Athene MYGA has rate lock for 60 days from application. Then you have free look of 20 days. If you apply today you have 60 days to fund the premium. That would take you out to Jan ‘24. Then you have another 20 days to cancel (e.g. if rates are higher in Jan).

I just looked and it is 6.15% for 5 years. The 60 day rate lock is for qualified funds not personal savings.

 

[jazz4cash]

I just looked and it is 6.15% for 5 years. The 60 day rate lock is for qualified funds not personal savings.

Oh, I do see the 0 day lock for personal savings now. That seems very unusual but my funds are qualified. Still not seeing the 6.15 rate but I am likely to move on from Athene because of the rate banding.

 

[pb4uski]

You folks are looking to lock in 5-year CDs because you anticipate Fed lower rates next year?

Yes, but in my case I bought 10 CDs over 5 years, every 6 months +/- and not a single 5-year CD.

Idea is to lock in these rates in case CD rates decline. I'm not necessarily trying to time rates but at the same time I don't think rates are going to go much higher so I'll get while the gtting is good. If rates trend up a little will I be unhappy with the 5.38% yield from the ladder? I doubt it.

 

[Dtail]

I spoke with someone at Schwab. I was using the ladder tool to build a 5-year CD ladder with 10 rungs. One possible issue is that the tool only offers you new issues and not secondary issues. I usually check the secondary issues checkbox but it might be that I didn't this time. Another is that the tool is very literal and would only present issues maturing in November or May whereas when I sarch I will accept issues a month or two on either side of November or May.

Anyway, after all of that the 10-rung, 5-year CD ladder had a weighted average yield of 5.38% but it did include 5 callable CDs.

With Fidelity, I was only looking for new issues and they still didn't list all the best yielding new issues.
Thus I effectively ended up doing it "manually". Only cost a few more minutes.

 

[ShokWaveRider]

Oh, I do see the 0 day lock for personal savings now. That seems very unusual but my funds are qualified. Still not seeing the 6.15 rate but I am likely to move on from Athene because of the rate banding.

I was using $250k as the investment number.

 

[jldavid47]

I think treasuries are a better deal with those CD rates....more liquid too.

It depends. If you pay state income tax you are usually better off with Treasuries on the short (<= 2 years) end. In a retirement account, the CD rates 1 year and beyond are a better deal by just a bit (especially since >95% of my IRA funds do not need to be liquid). I also like having a part of my retirement funds in agency bonds, but that's a different forum.

 

[Drake3287]

You folks are looking to lock in 5-year CDs because you anticipate Fed lower rates next year?

That's exactly why although I agree it probably won't be until well into 2024. Both the Federal Reserve and the Biden administration are looking for an interest rate drop as soon as they can get it.

 

[flyingaway]

It seems that good CDs are gone on Fridays, do they post newer and better one on Mondays?

 

[xlf11]

CIBC Agility Saving (5.01%APY) has a limited time offer for new or existing clients: upto $500 bonus for keeping $50k for a minimum of 90 days. Here is the link: https://us.cibc.com/content/dam/us-...ity-savings-promo-terms-and-conditions-en.pdf

 

[jazz4cash]

It seems that good CDs are gone on Fridays, do they post newer and better one on Mondays?

What rates/terms are you looking for? I see >160 new issues at Fidelity right now.

 

[PatrickA5]

I've got around $500K sitting in VUSXX (5.3% state tax free). I'd like to move some/all of that into something that is longer term, even if slightly less earnings. My dilemma is we "might" buy a new house in the next year or three. By "might", we're probably talking about less than 20% chance - since we're so picky. Other than maybe buying a house, we don't need the money to spend.

Question: What's the best savings vehicle that would allow us to capture the current rates long term (5yrs), but would be the easiest and cost the least to cash out (if needed). We don't want to put this money into stocks.

 

[Car-Guy]

So, let's say you have a 5 year brokered CD that is payable at maturity. Later you decided you need the money sooner than 5 years (let's say 3 in years). So you sell it on the secondary market. Easy enough I think.

But, since the interest is payable at maturity, what happens to the accrued interest? Does the original owner get 3 years worth of interest? If so who pays it and when? If not, what happens to it?

I've never done (nor do I plan to) but really don't know.

 

[flyingaway]

It is a little complicated to figure out the exact returns for secondary market treasuries at Fidelity. Can you buy treasuries in auction at Fidelity?

Currently I saw 1, 3, 6 month bills, not a longer.

 

[audreyh1]

So, let's say you have a 5 year brokered CD that is payable at maturity. Later you decided you need the money sooner than 5 years (let's say 3 in years). So you sell it on the secondary market. Easy enough I think.

But, since the interest is payable at maturity, what happens to the accrued interest? Does the original owner get 3 years worth of interest? If so who pays it and when? If not, what happens to it?

I've never done (nor do I plan to) but really don't know.

Whoever buys the CD also pays you the accrued interest. That is how it is supposed to work.

My understanding is that the secondary CD market isn’t very liquid, so you’d probably not get a great price.

 

[Car-Guy]

Whoever buys the CD also pays you the accrued interest. That is how it is supposed to work.

My understanding is that the secondary CD market isn’t very liquid, so you’d probably not get a great price.

So if I were to buy a 5yr 250k CD on the secondary market, that was only 3 years into it's 5 yr term, that would say it had accrued $37,500 in interest and that I would have to pay the original owner $287k for the CD? Less whatever I'd discount the original CD. Correct?

Of course I'd get all that back plus 2 more years of interest when it matured. Correct?