Current CD rates in your area

[REWahoo]

Anyone can join Pen Fed and get that 4%...

Yep, like the man said: https://www.penfed.org/howToJoin/overview.asp

Scroll down and look at #7...

 

[freebird5825]

Anyone can join Pen Fed and get that 4%...

Oh, I have that page bookmarked and a calendar reminder to revisit it when I am ready to jump into the CD pool. I have X amount to DCA per month and it is pointed at stocks right now.
I really do learn a lot here (when I'm not pitching slow ones over the plate ) You guys are great!

 

[John Galt III]

My credit union just lowered their cd rates drastically. Was 3.0 % 2 weeks ago for a 24 month. Now the 24 month is down to 1.6 % !!! The best rate is the 7 month, for some reason, at 2.25 %. All the other terms hover around 1.6 %. Awful. Maybe because of the recent scumfest in the "wholesale" credit union sector.

 

[ziggy29]

Maybe because of the recent scumfest in the "wholesale" credit union sector.

When few people are borrowing, there's little need to attract more deposits by offering higher rates on deposits. When everyone is saving and no one is borrowing, the return on savings is going to stink. Simple supply and demand.

 

[bbbamI]

One of the banks in my area got creative last week. A $10k or more cd for 5 years was based on the S&P 500. Whatever the S&P was on the day you opened the cd, would determine if you receive interest after 12 months. They would pay 6% if the S&P was up by just one point. If it went down 1 point, you got nothing. This goes on each year for the duration of the cd term. If you had to cash in the cd, there would be a 15 % penalty....

 

[ziggy29]

One of the banks in my area got creative last week. A $10k or more cd for 5 years was based on the S&P 500. Whatever the S&P was on the day you opened the cd, would determine if you receive interest after 12 months. They would pay 6% if the S&P was up by just one point. If it went down 1 point, you got nothing. This goes on each year for the duration of the cd term. If you had to cash in the cd, there would be a 15 % penalty....

I suspect that instead of paying "interest" they buy call options on the index which either expire worthless (giving you no interest that year) or allow them to give the depositor a share of the gains in the options.

Or something like that.