Best CD & MM Rates Thread 2018 Archive

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Golden sunsets said:
The 3% 2 year CD's are now equivalent to 2 yr Treasuries, at 2.865%, once I factor in the relatively high State Taxes we would pay at the highest marginal rate.
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What percent is your state income tax ?

Since I've always lived in a no income tax state. I can't imagine having to pay another government entity income tax.

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ShokWaveRider said:
I think if one anticipates needing money before the duration of an investment one should NOT invest in that vehicle. We have invested in CDs for 30 years and NEVER have we had to take an early withdrawal. So IMHO arguments about Early withdrawal penalties are moot and would be a result poor planning.
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I also have invested in CDs for decades without needing to take out the money early.

But recently I did cash out one of my CDs a couple of months early in order to invest in a better CD that more than made up for the small penalty.

Now that I am retired, some of my new 5 year CDs are structured to quarterly send the interest to my checking account [no fee or penalty.] Not only can I spend that interest if I need to... I might opt to reinvest that interest at a higher rate.

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Helena said:
I also have invested in CDs for decades without needing to take out the money early.

But recently I did cash out one of my CDs a couple of months early in order to invest in a better CD that more than made up for the small penalty.

Now that I am retired, some of my new 5 year CDs are structured to quarterly send the interest to my checking account [no fee or penalty.] Not only can I spend that interest if I need to... I might opt to reinvest that interest at a higher rate.

.
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That's what I do.
 
Helena said:
What percent is your state income tax ?



Since I've always lived in a no income tax state. I can't imagine having to pay another government entity income tax.



.
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The top marginal rate in my state is 7.15%.


Sent from my iPad using Early Retirement Forum
 
The NASA window has closed on their 3.25% 15 month share certificate. The rate is now 2.75%.
 
Union Bank has an 18m to 23m CD @2.75apy. 10k min - 99k max
 
We had a few cd mature a cpl days ago and are also in "evaluate" mode. So because of a cpl post here on fidelity, I called them this morn because I was unable to find what we would be paid for leaving the $ sit there. Took over 15 very frustrating minutes asking the same question over and over before she was finally able to tell me how much return I'd be receiving but yet she said many, many, many times that the fund is fdic insured! I suspect fidelity is well aware of ppl leaving for better rates while evaluating which is why she repeated fdic insured. Although I'm not very intelligent, I really dislike being treated that way and as a sheep!! I will be leaving fidelity. We also have Vg accounts. Can anyone recommend any others?
 
Hyper said:
We had a few cd mature a cpl days ago and are also in "evaluate" mode. So because of a cpl post here on fidelity, I called them this morn because I was unable to find what we would be paid for leaving the $ sit there. Took over 15 very frustrating minutes asking the same question over and over before she was finally able to tell me how much return I'd be receiving but yet she said many, many, many times that the fund is fdic insured! I suspect fidelity is well aware of ppl leaving for better rates while evaluating which is why she repeated fdic insured. Although I'm not very intelligent, I really dislike being treated that way and as a sheep!! I will be leaving fidelity. We also have Vg accounts. Can anyone recommend any others?
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I am at Fidelity and all the info is online and it’s easy to see the CDs available and the rates paid by various money market funds (which are not FDIC insured).

What kind of account do you have, and what is the core fund?
 
Goldman's online bank, Marcus, has 1.90% savings account and 2.55% 12-month CD. Very low minimums, but the CD does have early withdrawal penalty.
 
I think all eyes will be on PenFed at the end of this year. If they cannot get their 3 - 5 year CDS up to or above the best averages, they will certain lose me. In our case it is a VERY significant number. Three quarters of our retirement nest egg is coming due from 10 and 5 year CDs.
 
Another Reader said:
The yield on four week treasuries at tomorrow's auction is anticipated to be 2.07 percent. I'm in!
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The recent 4-week auction was 2.14% investment rate. It's moving up smartly!

13 week (3 month), 2.22%
26 week (6 month), 2.40%

12 month and higher, CDs are paying more.
 
njhowie said:
Can I ask what your objective is in doing this as opposed to simply looking for the highest yield to maturity, whether new issue or secondary market?
….
If you're looking to pick up deals on secondary market "offerings", you'll likely not be successful if you're looking for folks to post them here to alert you. The best deals generally pop up in small lots and by the time anyone could come here to post about it, and you see the post, it would likely be gone. Folks watch the CD inventory for when the deals pop up (I certainly do) and if you're not ready to grab it when you see it, if it is really a bargain, it will be gone in under a minute.

As far as long term bargains, over the past few weeks, I haven't seen any secondary market bargains on longer-term CDs. Fidelity does not offer anything longer than 10 years in their secondary market inventory. Etrade offers secondary market CDs beyond 10 years, but I closed my account earlier this year, so haven't seen their inventory in some time. For 10-year secondary market at Fidelity, just in the past week the yields have poked back above 3.7% after maxing out in the 3.6% range for the past month or so.
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TY for a response, I was away from the site for a couple days so slow responding.

The reason for asking cusip numbers is I felt that it might be easier to find specific items on some broker sites I use. At least one site I use seems to be hard to use with the sorting screens I have set up. (could be operator error ( mine)) and I end up scrolling through a 20 year list of many things I do not want like callable cds for example. They have a cusip search.

I have missed out on cds by a minute or two in the past so I agree that the inventory can move fast.


Not sure if this is true or not but I tend to see interest rates spike for one day and then take a week or so to reach that new spiked to level. I always assumed a big lender was placated and somehow I got the crumbs left over.
 
jazz4cash said:
The link shows rates for Taxable and Coverdale CDs but not IRA. IRA rates seem to be same as Coverdale eg 3.2 % apy for 5yr. Good News!
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3.2% or 3.3% is a good but not exceptional rate for 5 year at this time. Most of the new issue CDs at Fidelity are at 3.3% to 3.4% right now. Secondary market you can get 3.47% after commission.
 
Ready-4-ER-at-14 said:
The reason for asking cusip numbers is I felt that it might be easier to find specific items on some broker sites I use. At least one site I use seems to be hard to use with the sorting screens I have set up. (could be operator error ( mine)) and I end up scrolling through a 20 year list of many things I do not want like callable cds for example. They have a cusip search.
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Double check the queries you have set up. There may be a parameter to not include callable CDs. All have maturity date range as a parameter so you could easily narrow down the results. Minimally set up a few queries with maturities of say 0 to 5 years, 5 to 10 years, etc. That should ease the results somewhat.

I have missed out on cds by a minute or two in the past so I agree that the inventory can move fast.
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Inventory is also broker specific. There is no guarantee that a specific CD that shows up in Fidelity's secondary market inventory would be in Etrade's, for example.

Not sure if this is true or not but I tend to see interest rates spike for one day and then take a week or so to reach that new spiked to level. I always assumed a big lender was placated and somehow I got the crumbs left over.
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It is how the rates are moving in the market. However, as you likely know, that does not change the fact that a CD may show up in the secondary market inventory that is wildly out of line, possibly 0.2% or higher than where the rest of the market is. I have had a couple of instances with both Fidelity and Etrade where they have undone an executed trade where I seemingly got a great deal - claiming they were mistakes. I had a drawn out argument with Etrade once when their claim was "The counterparty didn't own the CD"...to which I responded "Not my problem - I have an executed/confirmed trade, go back to the counterparty and tell him/her they need to pay my profit for the naked short position they created for themselves". Etrade didn't have any good response other than repeatedly apologizing.

Keep at it - I agree with your approach and regularly scan the secondary market inventory because I know you can get great bargains. I have about 10 queries set up to pluck them out when they do show up.
 
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njhowie said:
3.2% or 3.3% is a good but not exceptional rate for 5 year at this time. Most of the new issue CDs at Fidelity are at 3.3% to 3.4% right now. Secondary market you can get 3.47% after commission.
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It's good news to me because I have IRA CD's maturing at Penfed and moving IRA funds between institutions is much more hassle than I ever expected it to be. The last time I tried to have Penfed draw IRA funds from Fidelity, they lost the paperwork twice and I just gave up. I'm more willing to give up a few bp to avoid the hassle. I have generally found Fidelity to be very easy to deal with, but have not purchased any brokered CD's there.
 
jazz4cash said:
It's good news to me because I have IRA CD's maturing at Penfed and moving IRA funds between institutions is much more hassle than I ever expected it to be. The last time I tried to have Penfed draw IRA funds from Fidelity, they lost the paperwork twice and I just gave up. I'm more willing to give up a few bp to avoid the hassle. I have generally found Fidelity to be very easy to deal with, but have not purchased any brokered CD's there.
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One good reason why I’m not in the camp of people who move money for higher CD rates. Whatever in Vanguard or Fido is good enough for me. I have money in Bank of America earning zero. I’m even too lazy to move that to savings account within Bank of America.
 
Yesterday it was 3.40% for 5 years. I’m not doing 5 years. I have a few brokered CDs for bonds.
 
the 2 year CD looks like the sweet spot to me... but why lock my money up for 2 years at 2.95% when 2.15% on VMMXX is available.... only $800 difference on $100k.... hardly seems worth it while raes are rising.
 
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