Just noticed on Schwab you can get 5% non-callable CD on 4 year with monthly payments from Wells Fargo. 5 year is 4.90% with same terms.
^^^^
Schwab still has them "at this time". Issued by WF and paying monthly.
4.9% for 5yr and 5.0% for 4yr.
^^^^
Schwab still has them "at this time". Issued by WF and paying monthly.
4.9% for 5yr and 5.0% for 4yr.
Well that will be good for 40k over the next 4 years. (Less tax and even more if you reinvest those interest payments.)Just filled the 4 yr one for my mom through Fidelity for 200k.
Not your fault. Schwab was having issues with their CD offerings late this afternoon. For a while they didn't show any CD's available.I have Schwab and the 5 year did not populate in my search results. Oh well.
Yup. It just got added to Schwab's inventory this morning. They also added another 5-year 4.95% only paying semi-annually from Customers Bancorp CUSIP 23204HPE2.Schwab has a 5 yr, monthly-paying, non-callable CD at 4.95% Medallion Bank #58404DTR2 Note: No Texas or Ohio buyers.
Schwab has a 5 yr, monthly-paying, non-callable CD at 4.95% Medallion Bank #58404DTR2 Note: No Texas or Ohio buyers.
Now that's interesting, I can't see the Medallion Bank CD but I can see the Customer Bancorp. I guess since I'm a Texas customer they filter Medallion out for me.Yup. It just got added to Schwab's inventory this morning. They also added another 5-year 4.95% only paying semi-annually from Customers Bancorp CUSIP 23204HPE2.
Schwab has a 5 yr, monthly-paying, non-callable CD at 4.95% Medallion Bank #58404DTR2 Note: No Texas or Ohio buyers.
Okay theoretical question.
If one likes Treasuries and Brokered CD's for their Fixed Income portfolio, here is the scenario.
TSY and CD have the same yield, no state tax, set in an IRA account.
Let's say one wishes to sell some fixed income and buy stock in their IRA account after a large market downturn with yields dropping as folks flee to TSY.
My first thought generically was there wasn't much difference between the two investments, but wouldn't the value of the CD drop in my example, but if one also uses TSY in their portfolio, the TSY would rise in value as yields drop and one could then choose to sell this higher market value asset vs. only having Brokered CD's.
Am I missing something?
Treasuries are much more liquid (currently) than CDs. You can sell a T almost instantly whereas as CD will likely draw a low ball bid.
Look at the secondary market values on CDs. If rates fall, the market value of a higher yielding CD goes up. Maybe not as much as Ts, but they do sell for above par.
RANT ON:
As been discussed in several threads, some of us are buying brokered CD's that make interest payments, monthly, quarterly or semi-annually, just to be able to reinvest the interest or withdraw it for other purposes. So by now we all should know that many banks don't always make their payments on the due dates "as promised". Often they are delayed by two, three or more days.
When I first learned of this "practice" Schwab explained to me that they have to wait for the issuing bank to send their payments to Schwab before they post them to my account. Ok, but it's funny to me, if I have a payment due "today" I'm expect to be on time or pay a penalty.
So, 6 months ago I bought a 1yr 250k 4.95% CD issued by Schwab that pays interest payments semi annually. First coupon is due today. Guess what, it's now after the close of business and still no credit to my account. I think I'm going to call Schwab and ask what their excuse is now . They can't seem to make payments for their own CD's any better than another banks.
RANT OFF:
EDIT: 4:05pm. Interest just posted to my account. But it's to late to do anything with it today.