Best CD & MM Rates Thread 2018 Archive

[Dtail]

^^^
In my parents CD Ladder, the first 1 yr is due in Feb. Will gladly take a 3.5% replacing a 1.90%.

 

[Spock]

Last few days CD rates have been dropping? Brokered CD's are easiest to follow on a daily basis. Have the better paying ones been purchased as the stock market has been tanking?
Or was the last rate hike factored in / in advance and now unsettled due to shaky markets? Have heard both reasons. Was thinking rates would be going up a bit after the feds .25% hike on the 19th... With 2 more projected next year. There are isolated deals 12 month, 15 month etc. But those look like deals to attract new customers rather than across the board rates. With the better 5 yr still around 3.5%... Just something to talk about....

Just my guesses
1. there is always a lag between the fed and the banks
2. while the fed said 2 more hikes next year, the market is pricing/betting in 0 raises next year and a cut in 2020. If it were my bank I wouldn't be in a rush to raise rates with those forecasts.
ETA: The qty of available CDs is also way down in my limited perspective. Fidelity used to have 200-300 new issues available, to day there are only 62 scattered across all maturities... take out the foreign and lower rated institutions and some maturities are slim pickings.

 

[Drake3287]

^^^
In my parents CD Ladder, the first 1 yr is due in Feb. Will gladly take a 3.5% replacing a 1.90%.

I think your a little overly optimistic! I'll be happy with 3% by then. Our local bank is at 2.90% right now for 18 months.

 

[audreyh1]

Long CD rates have been coming down because the long treasuries have dropped significantly over the past few weeks. Seeing lower rates via Fidelity.

You can still get 3.5% for 5 year at PenFed.org.

The short-term CDs are still up. Ally is offering 2.85% for a 14 month CD special.

 

[Dtail]

I think your a little overly optimistic! I'll be happy with 3% by then. Our local bank is at 2.90% right now for 18 months.

Sorry what I meant is that as part of the ladder buildup, the 5 year rate of 3.5% will replace the current 1 yr CD of 1.90%, as each piece of the ladder converts to a 5 yr CD.

 

[tulak]

VMMXX Paying 2.43% Compounded 7 day Yield

The 7 day SEC yield for this fund is 2.40%.

 

[jazz4cash]

Sorry what I meant is that as part of the ladder buildup, the 5 year rate of 3.5% will replace the current 1 yr CD of 1.90%, as each piece of the ladder converts to a 5 yr CD.

I think Drake meant the 5 yr rate in effect in Feb when your 1 yr rolls over is likely to be less then it is currently.

 

[njhowie]

Last few days CD rates have been dropping? Brokered CD's are easiest to follow on a daily basis. Have the better paying ones been purchased as the stock market has been tanking?
Or was the last rate hike factored in / in advance and now unsettled due to shaky markets? Have heard both reasons. Was thinking rates would be going up a bit after the feds .25% hike on the 19th... With 2 more projected next year. There are isolated deals 12 month, 15 month etc. But those look like deals to attract new customers rather than across the board rates. With the better 5 yr still around 3.5%... Just something to talk about....

This has been happening over the past several weeks - even leading up to the rate hike.

There has also been increased demand for longer-dated CDs and yields have been pushed lower on those which are longer-dated as a result.

This is happening because there is a swath of investors looking for safety/quality as they are concerned about the investment environment. I take a reality check every month or so as my maturities roll in looking for reinvestment. We're only ~2 years out from when short-term rates were at zero and 5-year CDs were below 2%. Today, everyone is talking that we're near the end of hikes for this cycle, and the Fed rate isn't even at 3%.

Without inflation picking up in 2019, and a pullback in aggressiveness of the Fed to continue rate hikes, demand for those 10-year CDs is going to continue, keeping them only a smidge above 5-year yields.

 

[Rianne]

Through VG bought 5 yr CD with Wells Fargo, 3.5%.

 

[almost there]

Am thinking things are sold out so to speak. Will watch the next month or so & see if the 5 yr picks up. Just a guess..........
Also need to watch brokered 5 yr CD's. As some are actually 7 yr under the 5 yr menu......

 

[njhowie]

AMEX savings goes to 2.1% - Ally shouldn't be far behind.

 

[almost there]

Ally down to 1.98%. Annual Percentage Yield: 2.00%.........
SWVXX money market still 2.26%

 

[lucky penny]

AMEX savings goes to 2.1% - Ally shouldn't be far behind.

Barclays online savings is at 2.2%. Usually neck-and-neck with AMEX.

 

[Drake3287]

Ally down to 1.98%. Annual Percentage Yield: 2.00%.........
SWVXX money market still 2.26%

It's been at that APY for awhile now. I think some people get confused with the APY and APR meaning even though it's generally close to the same.

 

[almost there]

Thought it was a bit higher? My mistake...

 

[Drake3287]

Literally splitting pennies!

 

[almost there]

No, just watching CD rates follow the ten yr, downward. Surprised to say the least.....
Above I listed both Ally current int % rate and APY.

 

[bmcgonig]

One year CD 2.9%

https://www.ablebanking.com/

 

[sheehs1]

My 3%-5 year PenFed Cd's came due this month. Proceeds have been siting in the share account.
Trying to decide which term to reinvest in. 2-year = 2.95%, 3 year = 3.05% and 5 year 3.5%. Not sure the extra 0.5% is worth it to keep it invested for another 2 or 3 years.

I did lock in 2 jumbo CD's with Langley Federal Credit Union at 3% for 29 months.

Thought I might wait another week or two.

Decisions, Decisions!

 

[bmcgonig]

My 3%-5 year PenFed Cd's came due this month. Proceeds have been siting in the share account.
Trying to decide which term to reinvest in. 2-year = 2.95%, 3 year = 3.05% and 5 year 3.5%. Not sure the extra 0.5% is worth it to keep it invested for another 2 or 3 years.

I did lock in 2 jumbo CD's with Langley Federal Credit Union at 3% for 29 months.

Thought I might wait another week or two.

Decisions, Decisions!

The Able one above gives you 3.2% for 2 yr, and 3.3% for 3 yr.

 

[ShokWaveRider]

I have just moved one from PenFed to Vanguard. Did it all by email, took 2 full business days for the money to get to Vanguard. I sent the email at 5pm on day 0, had confirmation of a properly filled out form by 7pm day 0, money was in VG by Afternoon of Day 2