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

[nwsteve]

For Forum members in Wa St and some Oregon or Idaho counties at Potlatch Federal Credit Union Rates as high as 3.35 for 60 mon. 24 mon--2.75; 36 mon 3.15%
See attachment for full list
https://app.loanspq.com/xa/xpressApp...SnnrOtKJHUNYWQ

[target2019]

Quote:

Originally Posted by jazz4cash Thanks Howie! I use SA as much for entertainment as for financial info. It’s not worth 30/mo to me.

A basic account on Seeking Alpha is free. I was able to see njhowie link in web browser.

[jazz4cash]

Yes, I was able to see it in the link also but cant figure out how to get there from my basic account app.

[4legsgood]

Quote:

Originally Posted by nwsteve For Forum members in Wa St and some Oregon or Idaho counties at Potlatch Federal Credit Union Rates as high as 3.35 for 60 mon. 24 mon--2.75; 36 mon 3.15% See attachment for full list https://app.loanspq.com/xa/xpressApp...SnnrOtKJHUNYWQ

I like the rates, but am a little unnerved by this statement about cd rates:

"RATE INFORMATION: The dividend rate and the annual percentage yield may change every month. We may change the dividend rate for your account as determined by the Credit Union Board of Directors."

Above might be a normal policy, but usually buried in the fine print.

[nwsteve]

Quote:

Originally Posted by 4legsgood I like the rates, but am a little unnerved by this statement about cd rates: "RATE INFORMATION: The dividend rate and the annual percentage yield may change every month. We may change the dividend rate for your account as determined by the Credit Union Board of Directors." Above might be a normal policy, but usually buried in the fine print.

The way I interpreted was the "offer rate" could change but not after a CD is issued unless it is stated as a variable rate. I don't believe any of their CD are variable but you would need to confirm with them.

[4legsgood]

Quote:

Originally Posted by nwsteve The way I interpreted was the "offer rate" could change but not after a CD is issued unless it is stated as a variable rate. I don't believe any of their CD are variable but you would need to confirm with them.

I do get the impression a credit union isn't able to change existing interest rate unless the rate caused them existential threat.

[Dtail]

Quote:

Originally Posted by 4legsgood I do get the impression a credit union isn't able to change existing interest rate unless the rate caused them existential threat.

Well GTE tried it but was defeated.

[4legsgood]

Quote:

Originally Posted by Dtail Well GTE tried it but was defeated.

I quick as possible did an 'add-to' on my GTE cd, since it did look like they could change a special feature with 30 days notice.

Tough times for fixed income!

[ShokWaveRider]

GTE is a B+, personally I would not go with any institution with my retirement funds who are less that A and A+. Mainly because we usually exceed the $250k NCUA/FDIC limits.

[4legsgood]

Quote:

Originally Posted by ShokWaveRider .... Mainly because we usually exceed the $250k NCUA/FDIC limits.

I would never exceed the limit, plenty of ways to avoid that, and then you don't have to think about rating.

[pb4uski]

+1

[ShokWaveRider]

Did not really have a choice, we do not like multiple institutions for our IRAs and have invested in CDs since 2000. So far fingers crossed, but we always chose highly rated Credit unions.

Why it is an different than putting $3m with one brokerage?

[4legsgood]

Huh? No choice, don't get that. No guarantees at all (except against some kinds of fraud) at a brokerage so don't get that 3M comparison. Everything will be fine I'm sure, I just prefer to have insurance coverage on my safest investments.

[ShokWaveRider]

Quote:

Originally Posted by 4legsgood Huh? No choice, don't get that.

At the time PenFed was offering great Rates in excess of 6% for 10 years I forget the actual numbers. The Funds were qualified and had a limited time to shift them. So the whole lot went to PenFED. Then off we went sailing. 10 years later we left the money with PenFed albeit at a much lower rate.

I do not want to dwell on this as it is off topic, but we had our reasons and were living on the income. It was leaps and bounds over the NCUA levels. We are spread out more now, but our IRAs are only insured for a meager $250k, but both our accounts are a lot more. Hopefully life will remain good as the CUs are rated over A.

Besides, what do folks with $10 - $20m do to protect their cash?

[4legsgood]

Quote:

Originally Posted by ShokWaveRider A... Besides, what do folks with $10 - $20m do to protect their cash?

Sounds like a good problem

[pb4uski]

Quote:

Originally Posted by ShokWaveRider Did not really have a choice, we do not like multiple institutions for our IRAs and have invested in CDs since 2000. So far fingers crossed, but we always chose highly rated Credit unions. Why it is an different than putting $3m with one brokerage?

Hugely different.... your CD is similar to a bond but rather than being an IOU from a compny it is an IOU from the bank. Your brokerage account assets are effectively held in trust and belong to you with the broker just admnistering them.

The brokerage doesn't own the underlying stocks and bonds and other investments that they hold for customers... your assets are effectively held in trust... if the brokerage goes bust then other than perhaps temporary difficulties accessing your assets you are not harmed. Theoretically, they could abscond with customer funds but it is unlikely because they quickly put people in jail for that whereas it is unlikely that they would go to jail for just going bankrupt.

If the bank you have CDs in goes belly up it is likely due to some of the assets (probably loans) that it holds going bust... what the FDIC will do is take control and pay each depositor up to the FDIC limit.... if there are extra assets left then you would be entitled to them but chances are there wouldn't be extra assets left so you would likely lose everything that you had in excess of the FDIC limits.

Quote:

If I have more than $250,000 in a closed bank and I am paid $250,000 by the FDIC, what happens to the amount in excess of $250,000? If for example, a depositor has only a single account with a balance of $255,000$3,000,000, he or she would be paid $250,000 through FDIC insurance and would receive a claim against the estate of the closed bank for the remaining $5,000 $2,750,000 which is not insured. The depositor would be given a Receiver's Certificate as proof of this claim and would receive payments as the assets of the bank are liquidated.

[Montecfo]

Quote:

Originally Posted by ShokWaveRider Did not really have a choice, we do not like multiple institutions for our IRAs and have invested in CDs since 2000. So far fingers crossed, but we always chose highly rated Credit unions. Why it is an different than putting $3m with one brokerage?

SIPC insures brokerage assets up to 500k ($250k cash). Most brokerages add an additional layer of private insurance.

[brewer12345]

Quote:

Originally Posted by ShokWaveRider Besides, what do folks with $10 - $20m do to protect their cash?

T bills, CDARS, money market funds, etc.

[audreyh1]

Quote:

Originally Posted by nwsteve For Forum members in Wa St and some Oregon or Idaho counties at Potlatch Federal Credit Union Rates as high as 3.35 for 60 mon. 24 mon--2.75; 36 mon 3.15% See attachment for full list https://app.loanspq.com/xa/xpressApp...SnnrOtKJHUNYWQ

Potlach- haha. Quite a tradition among the PNW coastal Indian tribes for hosting big potlatches where they gave away huge amounts of personal wealth. Something cracked down upon later by the Canadian government. Funny a credit union taking that name.

[audreyh1]

Quote:

Originally Posted by ShokWaveRider GTE is a B+, personally I would not go with any institution with my retirement funds who are less that A and A+. Mainly because we usually exceed the $250k NCUA/FDIC limits.

When you say we - if it’s a joint account (couple) you should be covered up to $500K, $250K each?