End of Year CD Deals

GrayHare said:
The rates on some of the money market funds are moving up. I see VMMXX quoted at a 1.13% yield now.
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Thanks. I moved every penny of our VMMXX to Ally years ago so I hadn’t noticed VMMXX is paying interest that’s much more competitive again (finally). I’m not moving cash back but I might let some sweep money accumulate at Vanguard again.

My Dad just moved a big chunk to Chase for FDIC insurance coverage. What their savings and CD’s pay is still [-]criminal[/-] woefully uncompetitive.
 
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audreyh1 said:
Yeah the money market rates have moved up smartly this year.
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It has me rethinking CDs. If rates continue to move higher, which is uncertain of course, a money market will relatively quickly give those higher rates, all without having to break a CD and possibly incur a penalty.
 
GrayHare said:
It has me rethinking CDs. If rates continue to move higher, which is uncertain of course, a money market will relatively quickly give those higher rates, all without having to break a CD and possibly incur a penalty.
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I'm not sure money market rates are going to beat the high yield savings account rates anytime soon. The Vanguard rate is the highest, but it's still just shy of the 1.20% to 1.35% rate offered by several banks. Those high yield savings rates have been moving up very quickly with the Fed Funds rate. And even short CD no penalty rates are available above that.

It's certainly way better than a couple years ago when savings/CDs were the only game in town.
 
It is only prison if you need the money. If you put Dividends in another account you can live off them. We have for 4 years now. Very easily. I would have NO intention of touching the principle. If one did, then it is possibly not a good investment for them.

My Maturity dates are December 2018 and January 2019. Then I will by looking for some 3% + CDs myself. $2m @ 60k PA not such a bad income for a retiree. Add SS and Not too bad at all.
 
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I still have 3 yrs left on Penfed 5% CDs plus a yr on the 3% ones. The 5% were 10 yr notes and I remember how tough it was to commit to that term. Looking back it was a great move. The only reason it feels like a prison is that I feel forced to reinvest the dividend due to lack of decent alternatives. I do like the NASA 49 mo CDs @ 2.25 but they keep sending me emails suggesting that may end soon. NFCU has been pretty good with Add-On features and I open one with a tiny deposit every time they are offered to reserve the rate. Last one was 2% for 17 mo. Overall I am maxed out on fixed income so just need to continue rungs on the ladder. I use these to substitute for bonds.
 
3% seems to be the magic number. I put money in 2.75% CDs earlier this year. Created 20 smaller CDs instead of one large one. They don't allow partial withdrawls or taking the dividends out after they get distributed into the CD so I had to have the dividends put into a share account. Just another example of how the system has become increasingly hostile toward savers. That's the way I view it. With so much money having been created it's no longer required to court savers. Money is not rare under the current system.
 
10 year CD purchase was a genious move Dash. Buying a 30 year bond circa 1980 is more genious. So far I have a zero in the genious moves column. Buy & hold doesn't count as genious does it?
 
I dumped GE Capital when they were bought out by Goldman Sachs. I figured GS would not invest much effort in the platform and be less than friendly to the little people.

Today I decided to open up a small one year CD at 1.65 percent to see how they do. So far, the platform seems well designed and easy to use. They had all my GE Capital info in their database, so it was easy to open the account.

My 11 month no penalty CD at Ally expires this month. The account is not large enough to qualify for the 1.5 percent at renewal. That money will go back into the savings account or into another CD at an institution with better CD rates.

Hoping some 3 percent CD's show up by the end of December so I can commit more money to them.
 
I see i-bond rates are up to 2.58 percent today. 0.10 percent fixed rate, 2.48 percent inflation.
 
I did $5k CDs. Makes for a thick statment. Looks more impressive.
 
2.38% inflation. It only took 4 rounds of QE to get it. My 3% base rate ibonds are lookin juicy.
 
Another Reader said:
I dumped GE Capital when they were bought out by Goldman Sachs. I figured GS would not invest much effort in the platform and be less than friendly to the little people.

Today I decided to open up a small one year CD at 1.65 percent to see how they do. So far, the platform seems well designed and easy to use. They had all my GE Capital info in their database, so it was easy to open the account.

My 11 month no penalty CD at Ally expires this month. The account is not large enough to qualify for the 1.5 percent at renewal. That money will go back into the savings account or into another CD at an institution with better CD rates.

Hoping some 3 percent CD's show up by the end of December so I can commit more money to them.
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I was thinking the same as you wrt GE Cap transition to GS Bank, but stuck with them to see how they would do. They've been fine so far. The only objection I have is they don't offer IRA (just like GE Cap). I asked if they might be offering IRA anytime soon and response was negative so I started moving to Ally but haven't gotten around to closing the GS Bank acct.
 
Bought a couple of 5-year CDs at 2.4% this morning. All of the 7-year CDs that I purchased from USAA in 2010 (at 3.65%) have matured and their current rates are not competitive at all, so I am looking for other opportunities. Still have some 10-year CDs at 5% from PenFed (maturing in 3 years). I jumped on Andrews FCU's 5-year CD at 3% last year. Overall, my CD ladder still pays a decent 3.5% for an average maturity of 3.7 years. Hoping for some good end-of-year deals.

I-bonds remain competitive.
 
Fed expected to raise in Dec. Should jack short CDs up again. Long end not responding.
 
Can we please keep this thread on point. It is very useful to those of us who like fixed income options and have some free cash to put to work. While what was available last year, 5 or 10 years ago is somewhat interesting. I would like to see more relevant posts.

Great information would be: Institution, Rate(s), Duration(s) & Minimum Investment & when the offer will expire if applicable.
 
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