Ally up to 1.50%

Fidelity premium MM is at 1.83%
 
COcheesehead said:
Yep. FZDXX. Now at 1.88%. We’re about to build a house and we’re using this as our draw account.
Click to expand...
Ah a day or two behind. Cool.
I see in another post that the Vanguard premium MM is over 2%, but requires 5mm.
FZDXX requires 100k, but one doesn't have to keep the balance over 100k IIRC.
 
Skip the Fidelity MM accounts. Look at the expense ratios... You can do much better at Vanguard if you want a large MM holding. I just buy treasuries at Fidelity instead.
 
I feel almost as giddy as when rates were at double digits in the early 1980's!

Remember Columbia Savings CD's @ 12%? :LOL:
 
njhowie said:
I like CDs, Treasuries (up to maybe 15 months), and munis.

You are correct on how I buy in general.

I don't have a "formal" ladder, though I do employ a laddering strategy. I don't have any particular maturity or timeframe that I'm targeting, just that I can pick up good yields and ride interest rates higher.

My portfolio maturity curve looks like the right half of a bell curve, with the bulk of maturities up to roughly 3 years, a bit less up to 5, a bit less up to 10, and maybe only 5 percent of the value at 10 years or more.

I have a set of pre-defined queries on Fidelity's website that I run and browse through to find CDs that are mispriced and pick them up when offered. I don't have any in particular that I'm specifically ever looking for, just that the rates are a good amount better than new issue or others offered for similar maturity.
Click to expand...

I haven't played with building queries there.
What filters are you using??
 
Spock said:
I haven't played with building queries there.
What filters are you using??
Click to expand...


Query capability for the CDs is very basic - just maturity date range, current yield range, current price, coupon, and callability.

I set mine up simply using the current yield range for various ranges, then play with the sort using current yield increasing/decreasing and the maturity date increasing/decreasing browsing the results eyeballing for any that stick out.

This is just for secondary market CDs.
 
njhowie said:
Query capability for the CDs is very basic - just maturity date range, current yield range, current price, coupon, and callability.

I set mine up simply using the current yield range for various ranges, then play with the sort using current yield increasing/decreasing and the maturity date increasing/decreasing browsing the results eyeballing for any that stick out.

This is just for secondary market CDs.
Click to expand...

Found an article on secondary CDs that had some bookmarklets in the article.
The query can be edited directly in the link, including eh Moody's rating of the issuing bank. (don't mind the rest of the parms... just playing with the query).
https://fixedincome.fidelity.com/ft...rice=&maxprice=&displayFormat=TABLE&sortby=MA
 
Lsbcal said:
You guy are so picky. Maybe try VMMXX instead. I think it is at 1.99%.:blush:
Click to expand...

Yes, with a nice sane $3,000 minimum.

The 5 year PenFed 3% CDs are maturing in Dec 2018. It's been nice while it lasted. The 10 year 5% ones mature in Jan 2021, they deserve a nice hug.
 
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Spock said:
Found an article on secondary CDs that had some bookmarklets in the article.
The query can be edited directly in the link, including eh Moody's rating of the issuing bank. (don't mind the rest of the parms... just playing with the query).
Click to expand...


For CDs that isn't the Moody's rating of the issuing bank. It's a parameter used for bond/muni queries. It has no effect for CDs. Make your minmoody, maxmoody, minsandp, maxsandp parameters anything you want - even garbage values it doesn't care - it's ignored for CD retrievals.
 
njhowie said:
For CDs that isn't the Moody's rating of the issuing bank. It's a parameter used for bond/muni queries. It has no effect for CDs. Make your minmoody, maxmoody, minsandp, maxsandp parameters anything you want - even garbage values it doesn't care - it's ignored for CD retrievals.
Click to expand...

Well... as a former software test engineer, thats a sev1 or sev2 defect/bug (and the developer will return it "working as designed" or a "undocumented feature").
 
Sue J said:
Yes, with a nice sane $3,000 minimum.

The 5 year PenFed 3% CDs are maturing in Dec 2018. It's been nice while it lasted. The 10 year 5% ones mature in Jan 2021, they deserve a nice hug.
Click to expand...

+1
3% for 5 yrs is available now....5% for 10 might be available before Jan 2021, but I see more value at the 3 yrs and under terms.
 
3% for THREE years is available in new issue brokered CD's from multiple banks. That's a non-compounded rate. My finger has been hovering over the trade button for at least a week. Not sure I want to tie money up for three years if interest rates continue to rise.

ETA: I did buy some two year CD's at 2.80 percent. Not a lot, just enough to call it a ladder.
 
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Another Reader said:
3% for THREE years is available in new issue brokered CD's from multiple banks. That's a non-compounded rate. My finger has been hovering over the trade button for at least a week. Not sure I want to tie money up for three years if interest rates continue to rise.

ETA: I did buy some two year CD's at 2.80 percent. Not a lot, just enough to call it a ladder.
Click to expand...

If you are uneasy about 3% for 3 years, then don't lose any sleep over it - just stick to the 2-year at 2.8% - what are we talking about, a difference of $20 on $10,000/year...$40 for the 2 years.

We are likely not at the end of the rate hikes as the next two in September and December are near 100% guaranteed. However, like all things investment oriented, do you require to squeeze the last penny out on every position? At some point the rate hikes will pause/end. As with the current economic cycle, we are certainly much closer to the end at this time. There are economic reasons why rates can only go so high before it does more damage than good, but that's another discussion.

Do what you feel comfortable doing. The 2 and 3 year CDs have been the sweet spot for the past couple months, as after that point, increased yields are difficult to come by with an almost flat yield curve. If you are offered 3% for 3 years or 3.6% for 10 years, which would you take? 3 years is quite enticing. However, what if longer term rates do not go higher and we are approaching the peak, with the next phase taking rates lower once again? Will 5 year CDs go back to 1.5%? 1 year back below 1%? Europe is keeping their short term rate at 0%, Japan is at -0.1% for short-term and 0.0% for their 10-year. US rates cannot go much higher when you couple this with US economic issues.
 
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njhowie said:
If you are uneasy about 3% for 3 years, then don't lose any sleep over it - just stick to the 2-year at 2.8% - what are we talking about, a difference of $20 on $10,000/year...$40 for the 2 years.

We are likely not at the end of the rate hikes as the next two in September and December are near 100% guaranteed. However, like all things investment oriented, do you require to squeeze the last penny out on every position? At some point the rate hikes will pause/end. As with the current economic cycle, we are certainly much closer to the end at this time. There are economic reasons why rates can only go so high before it does more damage than good, but that's another discussion.

Do what you feel comfortable doing. The 2 and 3 year CDs have been the sweet spot for the past couple months, as after that point, increased yields are difficult to come by with an almost flat yield curve. If you are offered 3% for 3 years or 3.6% for 10 years, which would you take? 3 years is quite enticing. However, what if longer term rates do not go higher and we are approaching the peak, with the next phase taking rates lower once again? Will 5 year CDs go back to 1.5%? 1 year back below 1%? Europe is keeping their short term rate at 0%, Japan is at -0.1% for short-term and 0.0% for their 10-year. US rates cannot go much higher when you couple this with US economic issues.
Click to expand...

What's implicit in my comments is the premium for tying up my money for an additional year is not high enough to make me jump, although crossing the three percent boundary is pretty exciting after all the years of near zero rates.

Most of the buying is about squeezing out a little extra yield over Fidelity's high ER money market funds on short term money, so you are correct, the 2.8 percent two year is the sweet spot for me.

I won't be buying any long term CD's or treasuries until the yields include a substantial liquidity premium. 30 year CD's at 4 percent? Thanks, I'll pass.
 
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