High(er)-rate CD deals

[audreyh1]

FYI, the PenFed 15-month CD special is over;
according to the fine folks at depositaccounts.com, as of 1/30/16 the rate dropped from 1.51% down to 1.26%. So it goes.

I figured it would be really really short. If they'd come out with that offer just a week earlier, I probably would have left more money with them (one of the CDs I had just bought was a 1.3% rate for 13 months). I was just lucky that I happened to leave a little behind. I knew I had better jump on it immediately or it would disappear.

The good thing is that as long as you open the account, even if there is a delay in funding it, you can still usually get the rate. And they make it easy to transfer the funds from an outside account.

As that article mentions, I noticed in my agreement that the language used on the penalties for PenFed CDs has changed quite a bit.

Certificates Having a Term Greater Than Six Months:

If redeemed within the first year, all dividends will be forfeited.

If redeemed thereafter, but prior to the maturity date, the early withdrawal penalty will equal 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.

 

[jazz4cash]

FYI, the PenFed 15-month CD special is over;
according to the fine folks at depositaccounts.com, as of 1/30/16 the rate dropped from 1.51% down to 1.26%. So it goes.

• May as well go out to 24 months and get 1.41% at Penfed.
• NASA FCU is at 1.3% for 15 months and 2.3% for 49 months.
• NASA 12 mo rate is .35% and the 48 mo is .80%!

What's the deal with the odd term periods on these specials? I guess it gets your attention and makes it easy to keep the regular term rates steady.

 

[audreyh1]

Oops - I guess the Synchrony Bank 1.3% 14 month CD is also gone.

 

[Rosie]

I'd rather mail them a check so I don't have my checking account number floating around on the internet.

FWIW, most banks and credit card providers enable alerts to be set up, so you receive an email &/or text msg whenever there is some sort of activity on your account. You can usually specify what kinds of activities trigger an alert. When all is well it'll simply inform you of transactions you initiated yourself or were already aware of, and you delete the message. But on the off chance something looks fishy, at least you get an early heads up.

I realize that's not a perfect solution, but it's worth considering.

 

[Rosie]

I was checking the depositacounts.com blog and came across this entry, which was posted yesterday (Feb 3):

USALLIANCE Financial Continues To Offer Top Rate 15-Month CD

It's a 15-month Fixed Certificate Special at 1.51% APY, Min $500, Max $100k

Details about eligibility, how to join, withdrawal penalties, etc are discussed in the link above, and other links provided therein.

 

[Rosie]

The CD Rates Summary on depositaccounts.com, generally updated bi-weekly, is an interesting read for those so inclined.

Here's the most recent entry (this link always goes to the most recent entry, which as of this writing is for Feb 2):

CD Rates Summary

An excerpt, pertaining to CD rates:

Last month has shown why CD ladders make sense. When it seemed almost guaranteed that rates would be rising in 2016, conditions started to change. Trying to predict future interest rates is very difficult. By using CD ladders, you don’t have to worry about interest rate predictions. You just renew your long-term CDs with new long-term CDs. Of course, it always make sense to choose new CDs with mild early withdrawal penalties, especially if you don’t have to sacrifice yields. Don’t forget that your existing CDs that renew may have higher early withdrawal penalties. In addition to checking the rate of the new CD, you should also check the latest CD disclosure. You may find out that the early withdrawal penalty has increased substantially. In that case, you should consider moving your money during the grace period.

 

[jazz4cash]

24 Month bump up rate: 1.5 apy
www.info.reverebank.com/cd

 

[John Galt III]

Got a card in the mail yesterday from Santander Bank. 5 year CD rate is 2.20%.

 

[Another Reader]

NASA credit union still offers 2.3 percent 49 month CD's per depositaccounts.com. It's easy to join.

BBVA offers a 1.35 percent 13 month CD, not too bad, and a 1.20 money market account with no monthly fee as long as you keep $10,000 in the account. These accounts can be opened in person or on-line.

 

[harley]

Wake me up if something hits 5%.

 

[audreyh1]

Wake me up if something hits 5%.

Heck - 3% is interesting!

Even though I'm not really interested in committing to 5 years.

 

[Debinnov a]

I would take another 3% 5 year CD, especially with a reasonable EWP.

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[imoldernu]

Hard to even look at CD rates now. Remembering back around 1985, when we were getting 12.5% from Metlife Bank on some 5 year CD's. Moved to IBonds in 2001 through 2003, which are still paying between 4.8% and 5.6%

Re Synchrony... It took 32 days and hours and hours of calls to get a 70 1/2 distribution, at a time when we needed it for a rather large one time bill. The problem is that there is only one way to get this distribution, and that's by mail. It took them 13 days to open the first mail, and they never notified me at all that there was any kind of a problem. It took three calls to even find out why I hadn't received the distribution. Turns out one box on the request form hadn't been checked. They required a whole new form... no FAX. Two more weeks.
I sent a complaint to the FDIC, and three weeks later received a letter from Synchrony apologising. The customer service was rude, arrogant, and involved longer waits than Comcast... and that's saying something.

I firmly believe that this type of stall in paying is a matter of course and involves cash flow for the bank.

Highest CD rates are listed @ bankrate.com.

 

[scrinch]

... Re Synchrony... It took 32 days and hours and hours of calls to get a 70 1/2 distribution, at a time when we needed it for a rather large one time bill. The problem is that there is only one way to get this distribution, and that's by mail. It took them 13 days to open the first mail, and they never notified me at all that there was any kind of a problem. It took three calls to even find out why I hadn't received the distribution. Turns out one box on the request form hadn't been checked. They required a whole new form... no FAX. Two more weeks.
I sent a complaint to the FDIC, and three weeks later received a letter from Synchrony apologising. The customer service was rude, arrogant, and involved longer waits than Comcast... and that's saying something.

I firmly believe that this type of stall in paying is a matter of course and involves cash flow for the bank.

That's disappointing to hear, as Synchrony often has some of the highest rates available on 3-5yr CD's.

 

[John Galt III]

That's disappointing to hear, as Synchrony often has some of the highest rates available on 3-5yr CD's.

I think a lot of the banks and credit unions have inconsistent customer service, unfortunately. But if you only use them for certain idiot-proof things, like CD's they are OK because they are not often needed to be contacted (ideally). My own credit union has horrible reviews online, from folks who have loans, but not from the cd holders.

 

[mystang52]

I, in the literal financial sense, just got a 100% effective interest rate. Local bank offered a $50 Visa gift card. Only requirement is to open a savings account for $100 and leave it there for 6 months.
Rules allowed it, so DW and I opened 2 individual accounts for $100 each. Come August we'll get those gift cards. The bank was 1 mile from our house, so worth the "trip."

 

[John Galt III]

Interesting side note. I was checking out Melrose Credit Union in Briarwood, NY, since they had 5 year CD's at 2.42% recently. But they are getting killed by Uber since they have a lot of loans out to the old fashioned taxi drivers in NYC with those million dollar medallions who are getting behind on those loans. Depositaccounts.com says they have suspended evaluating Melrose's financial status for this reason.

 

[jazz4cash]

Navy Federal Add-On CD

I just noticed NFCU is offering the Add-On feature for existing CD's. I have not seen any announcement for this feature and I have been checking regularly since the 1st of the year. Typically this option runs from Jan 1 to Apr 15. You can add to an existing CD and get the same interest rate for the remainder of the term. I have one at 4% with a year left to maturity that is enticing.

 

[ShokWaveRider]

We are sitting on some 3% PenFed 5 Year CDs for out After Tax Moneys and 3% Great West MM Fund on our Taxables. ~$2m. Still another ~2yeas to go on the PenFeds.

We are NOT complaining.

 

[youbet]

That's disappointing to hear, as Synchrony often has some of the highest rates available on 3-5yr CD's.

You could always try filling out the forms correctly checking all the boxes that need checking. Synchrony may very well perform admirably on requests with no mistakes or other issues and just have a problem dealing with boo-boo's on the part of the customer.

 

[friar1610]

I just noticed NFCU is offering the Add-On feature for existing CD's. I have not seen any announcement for this feature and I have been checking regularly since the 1st of the year. Typically this option runs from Jan 1 to Apr 15. You can add to an existing CD and get the same interest rate for the remainder of the term. I have one at 4% with a year left to maturity that is enticing.

I looked on the NFCU web site (but didn't bother logging in) and didn't see that offer. Where did you find it, specifically?

BTW, noticed where you are from which triggered thoughts about my many years in that area and was a Tower FCU member. Wondered what rates they are paying these days, checked their web site and was amazed how little they are paying at the moment. I always found them great to do business with.

 

[scrinch]

You could always try filling out the forms correctly checking all the boxes that need checking. Synchrony may very well perform admirably on requests with no mistakes or other issues and just have a problem dealing with boo-boo's on the part of the customer.

Thanks for the suggestion.

So you're saying that customer service may only be lousy when it is needed. The rest of the time....no problem?

 

[Rosie]

This caught my eye today:

---
Internet bank EBSB Direct has three competitive CDs: 16-month CD (1.35% APY), 24-month Bump-Up CD (1.41% APY), and 48-month CD (2.13% APY). The minimum opening deposit for all three CDs is $1K, with no maximum balance cap.
---

More details, incl early withdrawal penalty info, here: EBSB Direct Now Offers Nationally Available CDs

 

[jazz4cash]

I looked on the NFCU web site (but didn't bother logging in) and didn't see that offer. Where did you find it, specifically?



BTW, noticed where you are from which triggered thoughts about my many years in that area and was a Tower FCU member. Wondered what rates they are paying these days, checked their web site and was amazed how little they are paying at the moment. I always found them great to do business with.

So sorry I missed your post in time to reply. In past years NFCU has put the add-on notice in a prominent location but for the last two years there was no notice. It generally runs from Jan 1st to Apr 15th. You could call and ask but if you log in there is an "add on" drop down box available on the detail page of the specific CD when the promo is running.

As for Tower FCU my brother swears by them but I never found their rates to be attractive. I live near their HQ which qualifies me for membership or I guess I might qualify as family of a member


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[jazz4cash]

Hi folks, I was thinking it might be helpful to post info about CD deals and rate promotions in one thread. They tend to come & go fairly quickly.

(If there is already such a thread here, I applogize -- let me know & I'll delete this).

I'll start:



PenFed recently announced a 15-month CD (1.51% APY), minimum deposit $1K, with no maximum balance cap.

More details here

Too bad we don't have enough posts to this thread to make it a sticky, but since there are at least 4 other threads on this topic, I'll just put this here instead of starting another.

Does anybody else take note of unfamiliar banks and credit unions while traveling and look them up to see if they have any deals?

I went to Warwick, RI this weekend and noticed Greenwood Credit Union so I looked them up. They have some decent rates (2.1% 5yr CD), an "A" health rating on depositaccounts.com, and open membership.

Best deal I know right now is still Andrews (Air Force Base) Federal Credit Union 3% CD for 84 months with only 6 month early w/d penalty.
Edit: This one is IRA only