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

[PatrickA5]

Free withdrawals does refer to lack of surrender charge. I am sure taxes will be due on interest but maybe someone can tell us if withdrawals consist of principal only or a combination. I’ve taken the 10% free withdrawal to buy a higher rate contract but it was IRA money. The details around withdrawal of interest is opaque. Currently the provider I am using reduced the free withdrawal to 5%. In addition to the hefty surrender charge many MYGAs assess a market value adjustment based on the difference between the contract rate and current rates

I posted a similar question on Bogleheads and Stinky (a MYGA guru) responded with the following:

"Any withdrawal from an accumulation annuity is treated as ordinary income first, then return of basis, for tax reporting purposes.

So a 10% partial withdrawal will be partially, and could be fully, reported as taxable income, depending on how much earnings have built up in the contract. And the insurance company will send a 1099, showing both the amount of the gross withdrawal and the taxable income.

If you’re withdrawing interest starting with the first month, then there is no interest buildup in the contract. And yes, the insurer will send a 1099."

 

[Car-Guy]

Yes, & Yes.

It is just I am struggling as we are at the point where we have enough cash and IRAs to last us, but I am looking for an income stream for the rest of our days that does not include losing it if we cark it (I.E. SPIA). I may have to break down and have to hire and advisor ...... God forbid.

A discussion for another thread.

Do what!

 

[pb4uski]

I posted a similar question on Bogleheads and Stinky (a MYGA guru) responded with the following:



"Any withdrawal from an accumulation annuity is treated as ordinary income first, then return of basis, for tax reporting purposes.



So a 10% partial withdrawal will be partially, and could be fully, reported as taxable income, depending on how much earnings have built up in the contract. And the insurance company will send a 1099, showing both the amount of the gross withdrawal and the taxable income.



If you’re withdrawing interest starting with the first month, then there is no interest buildup in the contract. And yes, the insurer will send a 1099."

+1

 

[Dtail]

+1

+2
We will save you SWR.

 

[pletal]

Fidelity

Just on Fidelity site . looks like not many CD's for sale. What happened? Fire Sale?

 

[Car-Guy]

Just on Fidelity site . looks like not many CD's for sale. What happened? Fire Sale?

Same with Schwab, nothing available for 18mo and 2yr CD's and the pickens are slim for most everything else. But I've seen this before on a weekend. I expect (hope) to see them repopulated early next week.

 

[pletal]

Same with Schwab, nothing available for 18mo and 2yr CD's and the pickens are slim for everything else. But I've seen this before on a weekend. I expect (hope) to see them repopulated early next week

Car Guy. Thanks for the info!

 

[audreyh1]

When there is a big move in interest rate directions - maybe the issuers pull back and reevaluate which could take a little while.

 

[jldavid47]

Same with Schwab, nothing available for 18mo and 2yr CD's and the pickens are slim for most everything else. But I've seen this before on a weekend. I expect (hope) to see them repopulated early next week.

I've seen this before on Schwab as well. Wait until Monday AM after 7:40AM when they complete their daily (business day) refresh.

 

[11522914]

Same with Schwab, nothing available for 18mo and 2yr CD's and the pickens are slim for most everything else. But I've seen this before on a weekend. I expect (hope) to see them repopulated early next week.

What was different about that this time was the 18mo & 2 year were unavailable during the trading day on Friday. They had some in the morning but by early afternoon there were all gone. Very strange. Never saw that before.

 

[Car-Guy]

^^^^^
I wouldn't worry about it "yet". If they aren't back tomorrow by mid/late morning, then something may be going on.

 

[Al18]

There are lots of buyers of broker CD’s. You should check during working hours M-F.

I don’t see this rush at brick and mortar banks/credit union unless the deal is exceptional.

 

[jldavid47]

I've seen this before on Schwab as well. Wait until Monday AM after 7:40AM when they complete their daily (business day) refresh.

As of the Monday 7:40AM refresh there were no CDs available at Schwab for the 18 month, 2 year and 3 year maturities. After the stock market opened, 3-year CDs became available. I'm guessing the others will be available later today.

 

[Car-Guy]

^^^^
3 yr are already sold out "again".


EDIT: At ~9:30, A 2yr just popped up at 5%. Sure seems slower to repopulate this time
EDIT: At ~10:40 The 2 yr mention above is already sold out and 3yrs keep popping up one at a time but sell out quickly. Appears to me there are plenty of 1yr and less, near 5.5%, but not many longer terms at any rates.
EDIT: At 11:15 Now a "few" more are starting to pop up at/near the same rates as last week. That was a little longer than usual to repopulate on a Monday.

 

[MomintheSouth]

NFCU and PenFed have both been very slow to raise rates on their long term CDs. 5 yr holding at 4%. Nope. Been pulling funds out from there as they mature.

 

[Drake3287]

I realize I can find a brokered 5 year CD in the low 5% range but I just noticed today that BMO Bank is now offering a 4.75% CD for 5 years. Has anyone found a 5 year rate through a B&M or online bank with a better rate than that?

 

[GhostofTomJoad]

I realize I can find a brokered 5 year CD in the low 5% range but I just noticed today that BMO Bank is now offering a 4.75% CD for 5 years. Has anyone found a 5 year rate through a B&M or online bank with a better rate than that?

4.75% for 5 years? no, grab it.
Best I can find at my Navy Fed CU branch is a 1-year at 4.9%.
At NFCU, the 5-year offering right now is at 4.00%.

 

[pb4uski]

I realize I can find a brokered 5 year CD in the low 5% range but I just noticed today that BMO Bank is now offering a 4.75% CD for 5 years. Has anyone found a 5 year rate through a B&M or online bank with a better rate than that?

I just placed orders for a 5 year brokered CD ladder with 10 rungs, maturities in May and Nov each year... weighted average yield was 5.33% but 4 of the 10 rungs were callable, which I am fine with.

First Federal Bank FL was offering a callable 5-year at 5.7%. 32022WCX2

The best 5-year noncallable was 5.05% so I took the call risk and the extra 0.65% yield.

 

[aja8888]

First Federal Bank FL was offering a callable 5-year at 5.7%. 32022WCX2

The best 5-year noncallable was 5.05% so I took the call risk and the extra 0.65% yield.

Not available - foreign, Texas LOL!

 

[jldavid47]

Current best non-callable brokered CD rates at Schwab (11/07/24):

12 mo - 5.45%
18 mo - 5.45%
24 mo - 5.30%
36 mo - 5.15%
48 mo - 5.05%
60 mo - 5.05%

12 and 18-month rates dropped by 5 basis points since last Tuesday, 2-year by 10 basis points. Longer maturities were unchanged.

 

[ShokWaveRider]

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

 

[Car-Guy]

Current best non-callable brokered CD rates at Schwab (11/07/24):

12 mo - 5.45%
18 mo - 5.45%
24 mo - 5.30%
36 mo - 5.15%
48 mo - 5.05%
60 mo - 5.05%

12 and 18-month rates dropped by 5 basis points since last Tuesday, 2-year by 10 basis points. Longer maturities were unchanged.

5 basis points isn't much and of course, one week doesn't make a trend, but it's something to be watched in the coming weeks/months. For me, I'm still holding my growing stash of dry powder hopefully until 1q24 especially since SWVXX is holding pretty steady at this time. There's still a possibility the Fed will raise rates again (albeit small) in Dec/Feb timeframe. Anyway, I don't see rate cuts coming anytime soon.

 

[flyingaway]

I was trying to build a 5-year ladder at Fidelity, but they recommended all Wells Fargo CD for an average interest of 5.19%. Maybe a diversified banks would be better?

 

[freedomatlast]

NASA FCU - 9 month CD - 5.3%

 

[Fermion]

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