I don't get the point of a no-penalty CD. What's the difference between that and a savings account?
You are usually offered a higher rate.
You lock in that rate for the term.
Right, but what's in it for the bank?
I promise not to make any more deposits in this account, and I say that I *hope* to keep the money in there for xx months, but no penalty if I don't.
If rates go up, I just withdraw and re-deposit at the higher rate. If rates go down, I keep my money in the higher-rate account.
It's a lose-lose for the bank, right?
I'm not accustomed to seeing banks do things which benefit me, at their expense.
Right, but what's in it for the bank?
I promise not to make any more deposits in this account, and I say that I *hope* to keep the money in there for xx months, but no penalty if I don't.
If rates go up, I just withdraw and re-deposit at the higher rate. If rates go down, I keep my money in the higher-rate account.
It's a lose-lose for the bank, right?
I'm not accustomed to seeing banks do things which benefit me, at their expense.
Right, but what's in it for the bank?
I promise not to make any more deposits in this account, and I say that I *hope* to keep the money in there for xx months, but no penalty if I don't.
If rates go up, I just withdraw and re-deposit at the higher rate. If rates go down, I keep my money in the higher-rate account.
It's a lose-lose for the bank, right?
I'm not accustomed to seeing banks do things which benefit me, at their expense.
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.
My current cutoff for CDs is 2.5%, for no more than 3 years. If I can't find such a deal, I'll use I Bonds or short term bond funds instead.
Ally now offers a 12 month "high yield" CD for 1.65%. Minimum $25K deposit.
.......................... The 3yr IRA CD rate is a tad lower than I posted earlier....1.87 vs. 1.92 for taxable CD. ...............
I was surprised by this too when IRA CD renewed. Rep explained that IRA CDs have a component of no-penalty liquidity (for RMDs for example) .......so just as savings account typically has lower rates vs longer term CDs , IRA CDs typically have lower rates than non-IRA CDs.
Yep, that was nice and have one more year to go on them. Nothing after 4 years still doesn't come close.Yes, please do! I just had a significant CD mature, and I just rolled it into my savings account since I didn't see anything worth putting it in. A nice 3% or so like the one from Pen Fed a few years ago would be sweet.
I just got notice from Synchrony of their "Cyber Week Special" deal of 1.75% for 13 months available through Dec 3. https://www.synchronybank.com/home/?UISCode=0000000
Fidelity has brokered CD's that pay 1.65% for 12 months, 1.95% for 2 years
Last day for NASA FCU CD specials is tomorrow 11/30. It's 2.25 for 49 months/ 1.6 for 15.