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

[Car-Guy]

I hope their loan rates are proportional to their CD rates.

I don't know since they don't post loan rates on their website... That's a Red Flag to me.

More folks than one would imagine.

I have a very good working relationship with that bank but this makes me wonder. Guess they are like all the others.

 

[jldavid47]

Current best non-callable CD rates at Schwab:

12 mo - 5.50%
18 mo - 5.45%
24 mo - 5.25%
36 mo - 5.05%
48 mo - 4.90%
60 mo - 4.80%

18, 24 and 36 month maturities declined by 10 to 15 basis points since last week. 12, 48 and 60 month maturities remained the same.

 

[doneat54]

Morgan Stanley had a 1 yr CD at 5.7% a few days ago. Dropped to 5.65% now.

 

[ShokWaveRider]

I was looking at Schwab CD Rates today. I noticed that a lot of their banks (decent paying ones that is) are Rated C- and C+. I am not sure I am comfortable with that. Even at the FDIC limit.

 

[Car-Guy]

When I buy CD's I check them too. Only buy from A (5 star) or B (4 star) banks. Who needs the "potential" hassle.

 

[pb4uski]

I was looking at Schwab CD Rates today. I noticed that a lot of their banks (decent paying ones that is) are Rated C- and C+. I am not sure I am comfortable with that. Even at the FDIC limit.

With FDIC insurance I think bank ratings are superfulous.

Not sure what the hassle would be unless by coincidence your CD is maturing at the exact same time that the FDIC is taking the keys, but usually it is all resolved over a couple days.

 

[ShokWaveRider]

With FDIC insurance I think bank ratings are superfulous.

Not sure what the hassle would be unless by coincidence your CD is maturing at the exact same time that the FDIC is taking the keys, but usually it is all resolved over a couple days.

So, do you just take the highest payer and not worry about it regardless of their rating? Even 4 and 5 year ones?

 

[pb4uski]

So, do you just take the highest payer and not worry about it regardless of their rating? Even 4 and 5 year ones?

Yup. Full faith and credit. Highest yield wins since credit default risk is the same for all FDIC insured brokered CDs.

 

[ShokWaveRider]

Yup. Full faith and credit. Highest yield wins since credit default risk is the same for all FDIC insured brokered CDs.

I guess me and CarGuy are not used to it. Accepting there is no risk that is. Has anyone ever defaulted on you?

 

[Car-Guy]

I guess me and CarGuy are not used to it. Accepting there is no risk that is. Has anyone ever defaulted on you?

I'm sure I'll get my money back from a bank in default but I'm not as sure how long it could take. And while not earning anything. Most likely just a few days, but who know for sure. So all things being equal, I'll stay with the highest rated banks.

 

[jazz4cash]

I'm sure I'll get my money back from a bank in default but I'm not as sure how long it could take. And while not earning anything. Most likely just a few days, but who know for sure. So all things being equal, I'll stay with the highest rated banks.

I agree the lack of access while an issue is sorted out is the risk. Staying within FDIC limits should keep depositors out of danger. Also what level of service to expect from a lowly rated bank. Now that we’ve seem FDIC in action it seems they are overly responsive to depositors. How was SVB rated when they collapsed? I don’t know that these ratings are reliable.

 

[pletal]

Spread your risks. Split the cash in half. Buy a five year now and then watch for a better deal in the next few months.

That's pretty much what I am doing. Adding a couple of MYGA's along the way to help defer taxes. Nice to see my average get to 4.5. Old CD's maturing in 2023 and renewed at a higher rate added almost 10k to my yearly fixed income amount.

 

[Car-Guy]

I agree the lack of access while an issue is sorted out is the risk. Staying within FDIC limits should keep depositors out of danger. Also what level of service to expect from a lowly rated bank. Now that we’ve seem FDIC in action it seems they are overly responsive to depositors. How was SVB rated when they collapsed? I don’t know that these ratings are reliable.

Nor do I. But it's one of the few tools I have in this area. That and staying under the FDIC limits is about all I can do.

 

[pb4uski]

I guess me and CarGuy are not used to it. Accepting there is no risk that is. Has anyone ever defaulted on you?

No, never.

 

[Love This Community]

I’m thinking of putting about 40K in Credit Human at 6% 17 months duration. Never tried this credit union before but seems like an easy process to open an account with $5 membership for those that don’t live in the area where the CU operates.

 

[Tracer]

I’m thinking of putting about 40K in Credit Human at 6% 17 months duration. Never tried this credit union before but seems like an easy process to open an account with $5 membership for those that don’t live in the area where the CU operates.

I bought a 35 month at 5.50% and a 23 month at 5.25% from this credit union a few months back when their rates spiked. They've since pulled those rates back a bit right after I bought them. Lucky timing!! Joining and purchasing were pretty effortless. That recently introduced 6%er looks pretty inviting! I'd grab it now before they pull that back too.

 

[pb4uski]

I did the credit union CD special thing for a while back in 2019 and with PenFed prior to that when they were offering 3.0-3.5% for 5 years in a low interest rate environment.

I didn't mind the inconvenience when I ws getting a 2% or more premium, but I didn't like having so many disparate accounts here, there and everywhere.

I like it that now brokered CD are available at competitive rates and I can have everything in one place.

While 6% for 17 months is attractive, I could buy a JPM brokered CD yielding 5.7% maturing in Jan 2025 with a few clicks and avoid the hassle of establishing new accounts.

 

[Tracer]

While 6% for 17 months is attractive, I could buy a JPM brokered CD yielding 5.7% maturing in Jan 2025 with a few clicks and avoid the hassle of establishing new accounts.

Is that 5.7% JPM CD call protected?

 

[Love This Community]

Agree pb4uski. I would go for a 5.7 JPM CD. Does anyone has the CUSIP for it please? I have an E*trade brokerage account and could buy it from there

 

[pb4uski]

Is that 5.7% JPM CD call protected?

Agree pb4uski. I would go for a 5.7 JPM CD. Does anyone has the CUSIP for it please? I have an E*trade brokerage account and could buy it from there

Callable at 100 beginning 04/24/2024.

CUSIP is 46656MSQ5

 

[Cayman]

10 year TIPS real rate (real time): https://www.cnbc.com/quotes/US10YTIP

Let me know if you go for some of these...I own a bit of it (from the intial auction, it is now quite a bit under water but will likely add to the position if the real rates keep rising.)

ETA: Last September I drew this very simple support line on the TLT chart. Back then, it was a note to myself not to go long if the $TLT support broke. Once it did, I occasionally rlook at it to remind myself. Honestly, I should print it out and tape it to my forhead everytime I've wanted to go big on any long term bond...as I've made a few "mistakes" and bought an occasional 5/10 year. (Not big, I would guess < 2% of my total net worth.) Eventually, sometime, it will be good to go big and lock in longer term...but this ugly chart (which keeps getting uglier) is a good reason to hesitate.

http://tos.mx/M6h4K4C

Just added to our TIPS ladder, buying 5/10 year. >2% over inflation works for me.

 

[aja8888]

Callable at 100 beginning 04/24/2024.

CUSIP is 46656MSQ5

Thank you! I had a CD mature this week and bought this today.

 

[audreyh1]

Ally sent notice of an 8-month CD special 5.25%, but a lot of noncallable brokered CDs are paying more than that.

 

[ShokWaveRider]

What I have noticed is that most brokered CDs with a Decent APY pay Quarterly if one is lucky, Bi-Annually or at Maturity. There seem to be very few decent longer-term CDs that pay monthly. There are some, but they seem few and far between. I am sure we could cherry pick some though.

 

[Gotadimple]

I'm sure I'll get my money back from a bank in default but I'm not as sure how long it could take. And while not earning anything. Most likely just a few days, but who know for sure. So all things being equal, I'll stay with the highest rated banks.

It doesn't take long with Schwab. As soon as the bank is assumed by another bank they start the process of liquidating the CD. Had that happen in 2011. Unfortunately I couldn't match the interest rate with a newer CD.

But to just generally avoid the hassle, 4* or 5* rating at Bauer Financial or Bank Rate is the smoother path.

- Rita