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

[DuluthGA]

+1

 

[PaunchyPirate]

I just purchased my first callable CD today via Schwab using the proceeds from a maturing T-Bill. It's a JPMorgan Chase CD paying 5.55% for 13 months. It's callable in about 6 months. I figured even if they call it, I'll have 6 months at 5.55%. Hopefully, I haven't missed something obvious about callable CDs. If I have, please enlighten me!

 

[JohnnyBGoode]

Nice, PaunchyP - 5.55% is more than anything I see on Fido. I agree with your assessment. A 6-month minimum at 5.55% seems like a pretty good bet.

 

[Freedom56]

I would wait for the 6% CDs to arrive. Treasury rates are trending up in anticipation of the supply coming to market.

 

[PaunchyPirate]

I would wait for the 6% CDs to arrive. Treasury rates are trending up in anticipation of the supply coming to market.

I will buy more if, and when, that happens. I have no problem earning 5.55% on a portion of my money.

 

[ShokWaveRider]

Our Big IRAs ~$1.5m total (His and Hers) @ ~4% do not mature till next March (2024). I am hoping for some 6%'ers by then. we have not touched them since we retired and do not intend on doing so till RMDs kick in.

I am curious, if RMDs are ~4%, and if the IRA is making 6% does one still only have to take ~4%?

 

[Freedom56]

I will buy more if, and when, that happens. I have no problem earning 5.55% on a portion of my money.

Your 5.55% CD should be safe from a call. Earning 5.55% is not the worst thing in the world given where we were in early 2022.

 

[latexman]

I am curious, if RMDs are ~4%, and if the IRA is making 6% does one still only have to take ~4%?

Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year, so . . . no.

 

[Marc]

Our Big IRAs ~$1.5m total (His and Hers) @ ~4% do not mature till next March (2024). I am hoping for some 6%'ers by then. we have not touched them since we retired and do not intend on doing so till RMDs kick in.

I am curious, if RMDs are ~4%, and if the IRA is making 6% does one still only have to take ~4%?

RMDs are based on the previous 31 December balance.

 

[ShokWaveRider]

Required minimum distributions (RMDs) are the minimum amounts you must withdraw from your retirement accounts each year, so . . . no.

Not sure you answered my Queston, but I get it. If the RMS for a 72 year old are 27.4 per the tables. Assuming a $500k IRA at the beginning of the year of the year. 6% added would make it $530k. 4% of $530 = $21.2k - $530k/27.4 = $19.343k so one does not have to take any more even though one made more. Sounds OK to me.

 

[aja8888]

Not sure you answered my Queston, but I get it. If the RMS for a 72 year old are 27.4 per the tables. Assuming a $500k IRA at the beginning of the year of the year. 6% added would make it $530k. 4% of $530 = $21.2k - $530k/27.4 = $19.343k so one does not have to take any more even though one made more. Sounds OK to me.

You only have to take what the IRS formula (table factor by year) dictates. You can take more, of course, and pay the extra tax. It's based on the 12/31 ending balance in the IRA, not at the start of the year.

 

[ShokWaveRider]

You only have to take what the IRS formula (table factor by year) dictates. You can take more, of course, and pay the extra tax. It's based on the 12/31 ending balance in the IRA, not at the start of the year.

I know, I took that into account in my calculation.

 

[Dtail]

Not sure you answered my Queston, but I get it. If the RMS for a 72 year old are 27.4 per the tables. Assuming a $500k IRA at the beginning of the year of the year. 6% added would make it $530k. 4% of $530 = $21.2k - $530k/27.4 = $19.343k so one does not have to take any more even though one made more. Sounds OK to me.

Correct, no different than earning 6% on stocks in that one year.

 

[audreyh1]

Not sure you answered my Queston, but I get it. If the RMS for a 72 year old are 27.4 per the tables. Assuming a $500k IRA at the beginning of the year of the year. 6% added would make it $530k. 4% of $530 = $21.2k - $530k/27.4 = $19.343k so one does not have to take any more even though one made more. Sounds OK to me.

The having to take more because you made more part happens the following year.

 

[ReadyNotReady]

Western State Bank just upped their High Yield Money Market (HYMM) account to 5.15% Better in my opinion than a CD since you get liquidity!

https://apps.westernbanks.com/

 

[njhowie]

Nice, PaunchyP - 5.55% is more than anything I see on Fido. I agree with your assessment. A 6-month minimum at 5.55% seems like a pretty good bet.

DSN6M2734 - 13 month 5.55% callable 10/12/2023

DSN6T9323 - 13 month 5.55% callable 1/11/2024

 

[Free bird]

These #s don’t exist on Vanguards system when I enter them.

 

[njhowie]

These #s don’t exist on Vanguards system when I enter them.

For new issue CDs, Fidelity assigns them a temporary/internal code, which when issued changes to the real CUSIP. Those temporary codes will only work in Fidelity when you do a lookup by CUSIP.

 

[NomDeER]

These #s don’t exist on Vanguards system when I enter them.

Vanguard has some callable JP Morgan Chase CDs at 5.55%. One of them is CUSIP 46656MEX5. If you look at their CD options on the fixed income quick search page, you'll definitely see them.

 

[PaunchyPirate]

Vanguard has some callable JP Morgan Chase CDs at 5.55%. One of them is CUSIP 46656MEX5. If you look at their CD options on the fixed income quick search page, you'll definitely see them.

This is the CUSIP for the one I bought at Schwab today.

 

[Montecfo]

Western State Bank just upped their High Yield Money Market (HYMM) account to 5.15% Better in my opinion than a CD since you get liquidity!

https://apps.westernbanks.com/

You do get liquidity but no downside protection which is likely to matter in the next 12 months.

 

[Free bird]

Who’s the issuing bank?

 

[pb4uski]

Not sure you answered my Queston, but I get it. If the RMS for a 72 year old are 27.4 per the tables. Assuming a $500k IRA at the beginning of the year of the year. 6% added would make it $530k. 4% of $530 = $21.2k - $530k/27.4 = $19.343k so one does not have to take any more even though one made more. Sounds OK to me.

The point is that you can take the whole IRA out if you want to as long as you pay the tax. The RMD is a mechanism to ensure that taxes are not deferred forever.

While I'm sure that you know this, just because you have to withdraw the money doesn't mean that you have to spend it. Some people don't understand that part.

 

[ShokWaveRider]

While I'm sure that you know this, just because you have to withdraw the money doesn't mean that you have to spend it. Some people don't understand that part.

Yes I do, thanks.

 

[Tracer]

Western State Bank just upped their High Yield Money Market (HYMM) account to 5.15% Better in my opinion than a CD since you get liquidity!

You do get liquidity but no downside protection which is likely to matter in the next 12 months.

Liquidity is important, but not for all your savings. I have a large chunk of cash at All America Bank currently earning 5.05%. Nice rate, but for how long? I was pretty confident I could tie up half of what I had in a CD to lock in a rate which won't change, unlike a high yield account which could change on any given day. I scooped up a 3 year certificate at a credit union with a APY of 5.50%. Now I have liquidity that I may need over the next 3 years and a great guaranteed rate on cash I'm pretty confident I won't need over that same time period. Have your cake and eat it.