Jumbo CD questions

[ProfessionalOnFire]

My spouse and I retired early last year. Never invested in CD's before but looking to invest $250K in a 2-year CD and had a couple of questions:

1.) If CD's are FDIC insured, what is the Kroll Rating, and does it matter if they are rated a B or B-?

2.) With talk of the fed raising interest rates, will this directly affect CD rates and should I hold off a few more weeks?

3.) where do you find the best rates for CD's?

 

[ownyourfuture]

Can't answer question #1
I assume if the Fed continues to raise rates, cd rates will rise as well.
Here's a link to help you find the best rates.
https://www.bankrate.com/banking/cds/cd-rates/

 

[Al18]

Another good site for CD rates is https://www.depositaccounts.com/blog/

You can also check for the health of a bank/credit union by entering the name into the search box on the top right corner of the page

 

[RetiredAndLovingIt]

+1 for deposit accounts website.
Also check this link for member posts for example the Navy Federal post has not made it to the blog yet.

https://www.depositaccounts.com/community/recent/

I would not be going long term yet, I'm waiting for at least 4% or even better 5%.

 

[njhowie]

So long as the CD is FDIC insured, there is nothing to be concerned about.

What Kroll/KBRA rating are you looking at? The bank? What bank are the CDs from?

At this time, the best CD rates are through your brokerage account at Fidelity, Etrade, Schwab, Vanguard, etc.

 

[ProfessionalOnFire]

So long as the CD is FDIC insured, there is nothing to be concerned about.

What Kroll/KBRA rating are you looking at? The bank? What bank are the CDs from?

At this time, the best CD rates are through your brokerage account at Fidelity, Etrade, Schwab, Vanguard, etc.

This was the two year CD I was looking at through my brokerage.
Maturity APY* Coupon Description
9/9/2024 3.48% 3.45 PACIFIC PREMIER BANK (CA)

 

[njhowie]

This was the two year CD I was looking at through my brokerage.
Maturity APY* Coupon  Description
9/9/2024 3.48% 3.45 PACIFIC PREMIER BANK (CA)

You shouldn't be concerned about it at all.

Bauer Financial gives Pacific Premier Bank 5 Stars.

Bauer is an authority when it comes to the banking sector.

 

[pb4uski]

My spouse and I retired early last year. Never invested in CD's before but looking to invest $250K in a 2-year CD and had a couple of questions:

1.) If CD's are FDIC insured, what is the Kroll Rating, and does it matter if they are rated a B or B-?

2.) With talk of the fed raising interest rates, will this directly affect CD rates and should I hold off a few more weeks?

3.) where do you find the best rates for CD's?

No need to worry about ratings so much given FDIC insurance.

Given the prospect of higher interest rates, rather than invest in a 2-year CD, I would put $30k into a 8-rung CD ladder... 3mo, 6mo, 9mo, 12mo, 15mo, 18mo, 21mo and 24mo... then as the rungs mature, use the proceeds to buy 2 year CDs.

Personally, I would use either CD or US Treasuries or Agency/GSE bonds, whichever is best yielding. I recently bought some 2 year GSE bonds that yielded 4%. I put together a CD/UST/GSE/Agency ladder for my mother similar to described abover that has a weighted-average term of about 1.4 years and a weighted average yield of about 3%.

I use Schwab, but Schwab, Fido or Vanguard are all good.