Best CD, MM Rates & Bank Special Deals Thread 2024 - Please post updates here

[Gotadimple]

American Express drops the rate on it's high yield savings account to 4.3% today down from 4.35% - this rate was last changed in October.

CDs are not truly competitive. Best offer is a 11-month CD at 4.75% no minimum and can renew at the then offered rate for that term.

 

[Car-Guy]

American Express drops the rate on it's high yield savings account to 4.3% today down from 4.35% - this rate was last changed in October.

CDs are not truly competitive. Best offer is a 11-month CD at 4.75% no minimum and can renew at the then offered rate for that term.

Yep,~1yr brokered CD's have been, and still are running just over 5%.

 

[explanade]

American Express drops the rate on it's high yield savings account to 4.3% today down from 4.35% - this rate was last changed in October.

CDs are not truly competitive. Best offer is a 11-month CD at 4.75% no minimum and can renew at the then offered rate for that term.

Yep,~1yr brokered CD's have been, and still are running just over 5%.

Last time I renewed, about 4-6 weeks ago, it was about the same 1-year for a bit over 5%.

OTOH, I have a 10-month CD maturing next week which has an APY of 4.48% and they're offering 5% APY for 10, 12 or 15 months at a local credit union.

For the convenience of not having to move funds around, I'm inclined to renew, rather than chasing say another 1/10 of a point. Now if the difference was more like 1/5 of a point or greater, I would jump through the hoops.

 

[audreyh1]

I went thru a period late last year early this year where direct bank CDs had higher rates than brokered CDs, especially compared to the noncallable ones. I ended up with all direct bank CDs loading up in Dec and Jan. This may have changed again recently. Also T-bills were offering higher rates than brokered CDs and I think they still are. I’ve been happily rolling over mine so far.

 

[Another Reader]

Did a Barclays 6 month at 5.3 percent. NASA has a 9 month at 5.4, but I can't seem to get an account opened there...

 

[Golden sunsets]

We have been especially alert to CD rates with 5 year maturities of late as we have a CD maturing this month in our 5 year ladder. As far as I can see the highest non callable rate I can find at Fidelity for new issues is 4.35%. For secondary market non callable I'm seeing 4.46%. For direct bank CD's I'm seeing 4.55%. We live in a state with the top marginal income tax rate of 7.15%, and looking at TE yields, buying a 5 year treasury at auction this month, we could get a TE yield of 4.924%, so I think our decision has been made.

If anyone knows of a 5 year direct CD with a rate of 5% please post here.

 

[Dtail]

We have been especially alert to CD rates with 5 year maturities of late as we have a CD maturing this month in our 5 year ladder. As far as I can see the highest non callable rate I can find at Fidelity for new issues is 4.35%. For secondary market non callable I'm seeing 4.46%. For direct bank CD's I'm seeing 4.55%. We live in a state with the top marginal income tax rate of 7.15%, and looking at TE yields, buying a 5 year treasury at auction this month, we could get a TE yield of 4.924%, so I think our decision has been made.

If anyone knows of a 5 year direct CD with a rate of 5% please post here.

I personally have been looking for that combo too, but have not seen anything close.

 

[PaunchyPirate]

JPMorgan Callable CD was called and paid out today. Help me understand what I didn't understand when I bought it.

I purchased a callable JPMorgan CD that settled on 7-11-23. It was a 13 months CD that would mature on 8-12-24 if not called. It paid 5.55% interest, which I thought was per year, so 12 months.

The CD was for $25,000. It was called and paid out today 4-11-24, so 9 months after purchasing it.

If it would have lasted 12 months, I was expecting (25000 x .0555) = $1387.50 in interest. Since it was only held for 9 months before being called, I would expect 9/12 or 3/4 of that interest. So $1040.63 in interest.

Instead, I got paid $345.92 in interest today (along with the return of the $25,000).

What am I not understanding? I'm sure I'm wrong, but I don't know why.
Perhaps I have now learned why most people say don't buy callable CDs.

 

[copyright1997reloaded]

JPMorgan Callable CD was called and paid out today. Help me understand what I didn't understand when I bought it.

I purchased a callable JPMorgan CD that settled on 7-11-23. It was a 13 months CD that would mature on 8-12-24 if not called. It paid 5.55% interest, which I thought was per year, so 12 months.

The CD was for $25,000. It was called and paid out today 4-11-24, so 9 months after purchasing it.

If it would have lasted 12 months, I was expecting (25000 x .0555) = $1387.50 in interest. Since it was only held for 9 months before being called, I would expect 9/12 or 3/4 of that interest. So $1040.63 in interest.

Instead, I got paid $345.92 in interest today (along with the return of the $25,000).

What am I not understanding? I'm sure I'm wrong, but I don't know why.
Perhaps I have now learned why most people say don't buy callable CDs.

You likely got interest paid December 2023 credited last year? I say this because:
25000*.0555*102/366 = $386

 

[PaunchyPirate]

You likely got interest paid December 2023 credited last year? I say this because:
25000*.0555*102/366 = $386

Doh! Almost correct. They paid me $699.45 on January 11th. I had forgotten that. Close enough.

Thanks for helping me find that. Problem solved.

 

[jldavid47]

Thread revival?

Current best non-callable brokered CD rates at Schwab (04/12/24):

12 mo - 5.05%
18 mo - 5.00%
24 mo - 4.90%
36 mo - 4.80%
48 mo - 4.55%
60 mo - 4.50%

 

[Car-Guy]

^^^^
I've got a couple more CD's maturing in Mid May. Hopefully rates will hold until then. (I think they will) I'll probably go for 18 to 24 month CD's this time since I think we'll start seeing the Fed cut rates later this year. Certainly at least one cut (probably two) before the election.

 

[Montecfo]

Maybe in this spike we can get some 5 yr 5% CDs.

I remember when we were being told rates would go much higher by now..So much for that.

 

[MarieIG]

I note that Navy Fed has a 12-month CD with APY of 5.15% available. I just rolled over a CD with them. I'll ride with Navy until next April and then check the rates.

I have a CD there maturing in 17 days. Maybe I'll leap on that too.

I have a CD maturing at Navy Federal. I don't really want to keep CDs in taxable accounts, but I want to support Navy Federal as they support service members so I will leave some money there.

 

[mebden]

I still don't get why people keep chasing high % CD's which most have been lower than some savings accounts online? When you have online bank accounts offering 5.32% APY interest rate at 5.17% for money market accounts which is the same as a high breed savings account or on another bank online is offering for its savings account 5.10% APY interest rate at 4.97%. I came out very well with these accounts last year. and both only need $100 dollars to open and your money isn't tied up?

 

[audreyh1]

They are trying to lock in rates for a longer period knowing that savings account and MM funds can drop rates quickly when conditions change.

 

[Chuckanut]

I still don't get why people keep chasing high % CD's which most have been lower than some savings accounts online? When you have online bank accounts offering 5.32% APY interest rate at 5.17% for money market accounts which is the same as a high breed savings account or on another bank online is offering for its savings account 5.10% APY interest rate at 4.97%. I came out very well with these accounts last year. and both only need $100 dollars to open and your money isn't tied up?

Maybe not everybody has the same financial needs as you do?

 

[Car-Guy]

they are trying to lock in rates for a longer period knowing that savings account and mm funds can drop rates quickly when conditions change.

+1 (And I see no need to take any investment risk anymore) Just happy to get ~5% for the next few years. No need for long term (decades) planning anymore. YMMV

maybe not everybody has the same financial needs as you do?

+1

 

[ShokWaveRider]

I like to lock our IRAs up for a while as we do not need or use them as an income source ..... yet. I just got 18m @ 5.35% at a local A Rated Credit Union, I would have liked longer but Oh Well. They represent about 50% of our investable funds, so it is not a trivial amount. No state income tax worries where we live.

 

[Midpack]

They are trying to lock in rates for a longer period knowing that savings account and MM funds can drop rates quickly when conditions change.

+1. I have almost all our cash in treasuries (vs CDs) for the same reason, because there’s no state income tax on treasury yields.

 

[statsman]

They are trying to lock in rates for a longer period knowing that savings account and MM funds can drop rates quickly when conditions change.

Having a firm grasp of how much interest will be earned can help plan for ACA subsidies, Roth conversions, tax brackets, ...

 

[Healthy Lifestyle]

I like to lock our IRAs up for a while as we do not need or use them as an income source ..... yet. I just got 18m @ 5.35% at a local A Rated Credit Union, I would have liked longer but Oh Well. They represent about 50% of our investable funds, so it is not a trivial amount. No state income tax worries where we live.

I don’t think State income tax in an IRA matters.?

 

[Chuckanut]

Having a firm grasp of how much interest will be earned can help plan for ACA subsidies, Roth conversions, tax brackets, ...

I would add financial survival. I know a lot of people go need to squeeze NNN dollars from their cash every year for basic life expenses and a few modest goodies. So, yes, locking in near 5% for 3-5 years is a good idea. Especially, if the FRB can get inflation down into the 3% range and keep it there.

Longer term, they also need stocks that they won’t have to sell at an ill-timed market downturn. So, having NNN dollars locked in at a rate the provides the necessary income becomes a very good idea.

 

[Golden sunsets]

They are trying to lock in rates for a longer period knowing that savings account and MM funds can drop rates quickly when conditions change.

Exactly! Those folks would rather have a 5 year CD yielding 4.6% for 5 years, then have a 1 year CD yielding 5.15% for one year and then nothing near 5% or even 4.6 % to reinvest in a year down the road.

 

[JackJester]

Hi. I posted this on 1-25 and I'm still seeking some feedback.

Anybody know anything about UFB Direct (via Axos Bank)?

I think this is a High Yield Savings Account from an online bank, but the interest rates are more in line with MM or CDs. The rate listed is 5.25% APY. Whereas Ally is currently 4.25% APY. So, I'm what am I missing? Here's a link to their website: https://www.ufbdirect.com/savingsac...arxEzkzJTpZ_hjhMaTSh0EZZXn9i571MaAkwTEALw_wcB

Here's a summary:
Features

• Earn up to 5.25% APY.*
• No monthly maintenance fees.
• No minimum deposit required to open an account.
• Access your funds 24/7 with easy-to-use digital banking tools.
• Enjoy peace of mind with FDIC insurance up to the maximum allowance limit ® Certificate #35546.

Thank You