Best CD & MM Rates Thread 2019 - Please post updates here

[ShokWaveRider]

Nice rate! They have pretty restrictive membership qualifications (i.e. only certain counties in Florida)?

Yes, a wide area of Florida though. For once a good rate came up somewhat near me. Most are quite restrictive.

 

[njhowie]

Fed has basically said they are done raising interest rates for the next two years. We've seen the top on CD yields. Grab whatever you can as yields will likely continue to slide.

 

[Spock]

Fed has basically said they are done raising interest rates for the next two years. We've seen the top on CD yields. Grab whatever you can as yields will likely continue to slide.

It would be really interesting to see what rates would be if the market determined what risk is worth without central banks interfering.

 

[njhowie]

It would be really interesting to see what rates would be if the market determined what risk is worth without central banks interfering.

Agreed - I've thought the same forever.

 

[stepford]

It would be really interesting to see what rates would be if the market determined what risk is worth without central banks interfering.

Particularly since without said 'interference' the market would likely be subject to far more drastic booms and busts as in the era prior to the Fed's existence.

 

[Spock]

Particularly since without said 'interference' the market would likely be subject to far more drastic booms and busts as in the era prior to the Fed's existence.

There are a lot of articles disputing that claim. The Great Depression occurred 13 years after the fed was created and the fed screwed up both ends of it, being too loose in the 1920's and too tight in the 1930's.
Bernanke, who is considered a Great Depression scholar, is quoted as saying:

Let me end my talk by abusing slightly my status as an official representative of the Federal Reserve. I would like to say to Milton {Friedman } and Anna {Schwartz}: Regarding the Great Depression, you're right. We did it. We're very sorry. But thanks to you, we won't do it again.

Bernake took too big to fail banks and merged them with brokerages, making even bigger institutions while socializing the losses.
Greenspan has admitted he got it wrong during his tenure with the "fix" for the dot com bubble setting the stage for the MBS/credit bubbles that triggered the Great Recession.
Powell just caved to another taper(+twitter) tantrum.

With fed leaders like this, I don't think the markets would do much worse.
If you want to believe in efficient markets, you got to let the markets work.

 

[pb4uski]

I'm finding it real hard to get excited about CDs with 18 months at 2.5% and 5 year at 2.9%.... or even high quality corporates at 3% and change for 5 year. For now I'm parked to the side in VMMXX at 2.48%... IMO just as good as 18 month CDs and more flexibility to take advantage of possible future opportunities.

For each $100k invested in VMMXX at 2.48% vs a 5 year CD at 2.9% I'm giving up $420 a year for flexibility.... I can live with that.

 

[JAGOTI]

17 month NFCU cd at 3.25% up to $50K

 

[audreyh1]

Wow - that was quite a drop in the 10 year treasury today.

All my bond funds took quite a jump in NAV this year.

Glad I had already purchased several CDs and locked in slightly higher rates.

 

[ShokWaveRider]

USF Federal Credit Union Offers 18-Month CD Special, 3.10% APY

 

[wrigley]

Just got an e-mail from NFCU. They are offering a 6 month CD, no limit on deposit amount, 3.00% APY.

Mike

 

[lucky penny]

I'm finding it real hard to get excited about CDs with 18 months at 2.5% and 5 year at 2.9%.... or even high quality corporates at 3% and change for 5 year. For now I'm parked to the side in VMMXX at 2.48%... IMO just as good as 18 month CDs and more flexibility to take advantage of possible future opportunities. For each $100k invested in VMMXX at 2.48% vs a 5 year CD at 2.9% I'm giving up $420 a year for flexibility.... I can live with that.

VMMXX yield has been dropping slowly, now 2.45%.

 

[ShokWaveRider]

VMMXX yield has been dropping slowly, now 2.45%.

Still better than the Fidelity equivalent, at least it was the last time I looked.

 

[calmloki]

Was going to plug more bucks into a local CU, Columbia CU in Washington. They had 3.6% for 30 months. No more when I checked yesterday. Might do the Navy 6 month CD, but it is only $400 more/100k than leaving it in Ally at 2.2%. If there was a big opportunity in the next 6 months I would want to be ready to grab it, not play with extracting it from Navy FCU.

 

[pb4uski]

VMMXX yield has been dropping slowly, now 2.45%.

2.45% is the 7-day yield.... the compound yield is more relevant... it is the yield for a year, similar to an annual percentage rate.

((1+(2.45%/365))^365) -1 = 2.48%

but you're right... it has been drifting slowly downward... but still better than most 1 year or 18 month CDs.

 

[Dave J]

RE: Ally 2 year raise your rate CD. I bought a decent amount on July 9, 2018 at 2.5% APY and can raise it 1 time in 2 years. It did go up to 2.6% a while back, but I've been holding for higher. After the Fed meeting this week I kind of doubt it will go up and who knows if it might go down. Would you pull the trigger and raise it to 2.6 now, or wait longer. Thanks.

 

[Aerides]

Dave I would either raise it, or convert it now to their high yield CD's, anything 12 month or longer is paying 2.75% and higher, so depending on how much/long you have, the 60 day penalty might be less than you'd stand to gain?

 

[Dave J]

Was going to plug more bucks into a local CU, Columbia CU in Washington. They had 3.6% for 30 months. No more when I checked yesterday. Might do the Navy 6 month CD, but it is only $400 more/100k than leaving it in Ally at 2.2%. If there was a big opportunity in the next 6 months I would want to be ready to grab it, not play with extracting it from Navy FCU.

If you have a SO that could get an account at NavyFed, you could each do 50k in the 17month, 3.25% special. And, it's a tiny increase in APY, but Ally has the 2.3% 11 month no penalty CD. You can break online in about 5 minutes after 6 days if better opportunity comes along. I have done that a couple times in past.

 

[retired1]

Nice. Opened 40 mo. special $3.75% but 6 mo. @ 3.0% is not too bad

 

[4legsgood]

Alaska USA FCU

This has restricted membership, but good for all Washington residents and more. Their CD rates have a tiered structure that's not great at lower balances but at 100k, 5 years, it's 3.55%.

Pretty good. And quite a few pocket branches, some open weekends and with notaries.

 

[Dreamer]

Just opened a 17 month CD at Navy Federal Credit Union at 3.25%.

 

[ShokWaveRider]

City Credit Union (TX) Promotes 4-Year IRA CD, 4.00% APY

 

[RunningBum]

I'm finding it real hard to get excited about CDs with 18 months at 2.5% and 5 year at 2.9%.... or even high quality corporates at 3% and change for 5 year. For now I'm parked to the side in VMMXX at 2.48%... IMO just as good as 18 month CDs and more flexibility to take advantage of possible future opportunities.

For each $100k invested in VMMXX at 2.48% vs a 5 year CD at 2.9% I'm giving up $420 a year for flexibility.... I can live with that.

That's what I've been doing, but now with CD rates stabilizing or perhaps dropping, I'm locking in rates with a ladder for the next 5 years. VMMXX rates look like they could drop so the difference may turn out to be more. Of course rates could go back up again, making VMMXX more attractive. I'm hedging my bets and leaving some with VMMXX.

So I'll have a quarterly flow coming in from dividends on my mutual funds, yearly injection when CDs mature, and take from VMMXX as needed. If I include tapping my HSA at 64, I've got a plan to get me to 65 without having to sell any funds and take capital gains, and should be able to stay short of the ACA cliff. If I must, I can tap my Roth as well.

 

[Carpediem]

How quickly/often does VG change the VMMXX rate or is it completely random, depending on the events of the world?

 

[audreyh1]

How quickly/often does VG change the VMMXX rate or is it completely random, depending on the events of the world?

I’m sure it’s daily and depends on the holdings in the fund. It just varies slowly.