"4.00% APY. Do I have your attention?"

Rosie

Rosie

Recycles dryer sheets
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I was perusing the latest CD rates at Depositaccounts.com -- everyone needs a hobby :LOL: -- and I came across this:

4.00% APY On Sharonview FCU's 64-Month Certificate Special

Whoa, now we're talkin'!

From the article linked above:
Easy membership requirement (EMR) for residents of NC, SC, GA, TN, or VA through Carolina Consumer Council. Nationwide EMR possible (see details in the Availability section).

Here's hoping others will follow.
 
Good point... but even if you just absorbed the fee it would only reduce your return to 3.9% (on $250k).
 
Let us hope there will be more of these in December 2018... Although for us the $250k Max is quite low. I wonder if there are ways of getting round that.
 
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Spanky said:
Two (you & your spouse) memberships?
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That is still only $500k only $20k pa income. Not very much from an income perspective. But $2m would generate $80k, $3m would be $120k + SS would be a reasonable income for most and sustainable indefinitely.
 
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ShokWaveRider said:
Let us hope there will be more of these in December 2018... Although for us the $250k Max is quite low. I wonder if there are ways of getting round that.
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Sure is. Give it to me to invest. :) I promise to pay you the interest minus taxes minus my administrative fee. :dance:
 
If anyone opens up one of these CDs please post back your experience.

I am a little leery since often times if it sounds too good to be true then something is not right. I am not even aware of a 3%, 5 year CD (presently) so 4% seems out of the ordinary.
 
Does this institution have the equivalent of FDIC? (I forgot what it's called for credit unions.)
 
RenoJay said:
Does this institution have the equivalent of FDIC? (I forgot what it's called for credit unions.)
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Yes it is NCUA and is actually better than FDIC. Reason: Each beneficiary (Including you) listed on the account gets $250k insurance. We have 8 on ours so we can invest up to $2m and are fully insured. Use 2 CUs and you can double this to $4m.
 
Programs like CDARS split the money up between multiple institutions so you can get FDIC insurance coverage for an 8 figure CD investment.
 
Earl E Retyre said:
If anyone opens up one of these CDs please post back your experience.

I am a little leery since often times if it sounds too good to be true then something is not right. I am not even aware of a 3%, 5 year CD (presently) so 4% seems out of the ordinary.
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FWIW, the comments section of the depositaccounts.com article I linked in post #1 gives some peoples' experiences in opening an account.

I agree, it's well out of the ordinary, although according to depositaccounts.com there are a couple of institutions currently offering a 3% 5 yr CD.

There are way too many hoops to jump thru for me to even consider opening an account at Sharonview FCU, assuming I could even qualify.

But here's hoping it's a harbinger of rates to come and not just a fluke. :blush:
 
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ShokWaveRider said:
That is still only $500k only $20k pa income. Not very much from an income perspective. But $2m would generate $80k, $3m would be $120k + SS would be a reasonable income for most and sustainable indefinitely.
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Do you really want to put that much money into a single credit union?
 
ShokWaveRider said:
As long as it is insured. I trust CUs a lot more than banks.
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Agreed - NCUA is backed by the full faith and credit of the United States - the exact same backing which FDIC and treasury securities have.

Not one penny of NCUA or FDIC insured deposits has ever been lost by a depositor. Both the principal and accrued interest are fully insured up to the respective limits.
 
I currently have 5 yr. PenFed CD's coming due in December that are earning 3.04%. Have a local bank BMO Harris currently offering 5yr. CD's at 3%. I think you have to be an Illinois or Indiana resident. I know it is not December yet but I am wondering is it wise to do another 5yr. CD at 3%?:)
 
ripper1 said:
I currently have 5 yr. PenFed CD's coming due in December that are earning 3.04%. Have a local bank BMO Harris currently offering 5yr. CD's at 3%. I think you have to be an Illinois or Indiana resident. I know it is not December yet but I am wondering is it wise to do another 5yr. CD at 3%?:)
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Our 5 year CD at Penfed will due in 1/31/19. I am thinking about rolling over to a one-year CD @2.07% when it is due. There are plenty of time before making any kind of decision.
 
Spanky said:
Our 5 year CD at Penfed will due in 1/31/19. I am thinking about rolling over to a one-year CD @2.07% when it is due. There are plenty of time before making any kind of decision.
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You'll likely be able to get 2.5%-2.75% at the time for one year.
 
njhowie said:
You'll likely be able to get 2.5%-2.75% at the time for one year.
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Only time will tell. I think a lot of us here are in the same boat. It pays for us to keep and eye out and inform each other.

I think between us here on the ER and Boggleheads Forums, combined we probably own a fair chunk of PenFed... :) It would be somewhat amusing to see how much we had combined in PenFed 3% CDs.
 
Earl E Retyre said:
If anyone opens up one of these CDs please post back your experience.

I am a little leery since often times if it sounds too good to be true then something is not right. I am not even aware of a 3%, 5 year CD (presently) so 4% seems out of the ordinary.
Click to expand...

I kinda skipped over this since I'm not in one of the listed states and don't wish to join another association just to get this deal. Rates are on the rise in general, after all. Curiosity go the best of me so I finally followed the link to get some details....I'm very surprised no one mentioned this requirement:

Deal Summary: 64-month Certificate Special, 4.00% APY, $500 minimum deposit of new money, per member deposit limit of $250k new money and $100k existing money.

So by the time you put 100k in at some lower rate, it dilutes the higher rate down to something well below what's available elsewhere.
No Thanks.
 
jazz4cash said:
....

Deal Summary: 64-month Certificate Special, 4.00% APY, $500 minimum deposit of new money, per member deposit limit of $250k new money and $100k existing money.

....
Click to expand...

To me, this means you are limited to 100K of money already at the bank (in checking account for example) and a limit of $250K of money from some other institution.

So If you have $150K at that CU, in a checking account or some other CD you can break, you can only put $100K towards the 4% CD.
 
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