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Old 04-13-2020, 11:58 AM   #321
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Hi, it looks like HSBCDirect is offering 1.7%. Is this a legitimate offer or related o the scam you guys were previously discussing?
In looking at depositaccounts.com it is legit. The 1.70% rate is within the normal boundaries of what is being offered currently with 1.75% the highest rate.
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Old 04-13-2020, 01:20 PM   #322
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In looking at depositaccounts.com it is legit. The 1.70% rate is within the normal boundaries of what is being offered currently with 1.75% the highest rate.
Affirmative. The scammer (who is still out there) is still offering 3.4% for a 9 month. I wish they could shut him down.
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Old 04-14-2020, 02:13 PM   #323
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I don't think that is at all true. While there are a dozen or so online banks that pay attractive high-yield savings rates the vast majoirty of banks and credit union high-yield savings rates just plain suck.

What is true is that credit union CD specials have been spanking banks for the past year to 18 months... or arguably even longer.
You're of course correct that my statement is not totally true (but I do think it's somewhat or even mostly true - which is why I used the word "most" twice in my original claim). When I made the statement I was thinking largely of those online banks offering great rates to which you refer above. However, I think most of us know rates vary somewhat between banks and credit unions. Now, though, it seems to me that the best banks are getting smarter and drawing customers with both rates and better service.
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Investor Beware: All credit union accounts
Old 04-14-2020, 02:41 PM   #324
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Investor Beware: All credit union accounts

In last year's thread, I reported that I had bought some CDs at Signal Financial Credit Union here in the Washington DC area. At that time they had a 72-month CD that had "unlimited" add-on money at any time during there term, penalty free withdrawal of half your money, and interest rate protection, meaning if rates increased you could opt for the new interest rate and term. The yield of 3.3% was also rather attractive.

Fast forward to last month, the credit union announced that they were eliminating the add-on feature. They provided 30 days notice. I knew the terms of my CD as set forth in the disclosure did not allow for unilateral changes to the terms. I dug through the other materials including truth and savings disclosures etc and I did not find that the credit union could make this change.
I spoke to the CFO at the credit union and long story short their position is that because the account disclosures, in the notices section, provide for changes upon 30 days notice, they can change anything that is deemed a term, since they say a CD is an "account".

I am not done attempting to get some satisfaction regarding this, but it certainly is a cautionary tale: you don't necessarily get what you bargain for with these credit union CDs.
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Old 04-14-2020, 02:43 PM   #325
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In last year's thread, I reported that I had bought some CDs at Signal Financial Credit Union here in the Washington DC area. At that time they had a 72-month CD that had "unlimited" add-on money at any time during there term, penalty free withdrawal of half your money, and interest rate protection, meaning if rates increased you could opt for the new interest rate and term. The yield of 3.3% was also rather attractive.

Fast forward to last month, the credit union announced that they were eliminating the add-on feature. They provided 30 days notice. I knew the terms of my CD as set forth in the disclosure did not allow for unilateral changes to the terms. I dug through the other materials including truth and savings disclosures etc and I did not find that the credit union could make this change.
I spoke to the CFO at the credit union and long story short their position is that because the account disclosures, in the notices section, provide for changes upon 30 days notice, they can change anything that is deemed a term, since they say a CD is an "account".

I am not done attempting to get some satisfaction regarding this, but it certainly is a cautionary tale: you don't necessarily get what you bargain for with these credit union CDs.
Complain to their regulator
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Old 04-14-2020, 02:56 PM   #326
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Complain to their regulator
That's the plan. Even if they are correct about ability to change terms, use of the "unlimited" and "at any time" language in the CD disclosures, with no reference to the account disclosures, is misleading.
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Old 04-14-2020, 03:43 PM   #327
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Montecfo's story sounds like last year's GTE Financial and their 3% add-on CD: they tried to change the terms and but ended up honoring them due to (I believe) Consumer Financial Protection Bureau complaints. If that is true I hope the CFPB can stay active and functional. This story suggests they may not:

https://www.cnbc.com/2020/03/02/supr...reau-case.html
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Old 04-14-2020, 07:31 PM   #328
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Montecfo's story sounds like last year's GTE Financial and their 3% add-on CD: they tried to change the terms and but ended up honoring them due to (I believe) Consumer Financial Protection Bureau complaints. If that is true I hope the CFPB can stay active and functional. This story suggests they may not:

https://www.cnbc.com/2020/03/02/supr...reau-case.html
Yup, that is why with these add on favorable CD's, it is best to get to the maximum FDIC insured sooner than later.
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Old 04-15-2020, 09:03 AM   #329
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Marcus (Goldman) is paying 1.7% for online savings.
Just lowered to 1.55%
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Old 04-15-2020, 10:11 AM   #330
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Ally sav., still 1.50%.
Same as Navy Fed's 5 yr. (
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2.02% 2 yr cd
Old 04-17-2020, 10:56 AM   #331
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2.02% 2 yr cd

Am wrapping up 2 yr jumbo CD ($99,000+) with Hughes Federal Credit Union. Rates dropped today but maybe something to watch.
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Zeros went negative?
Old 04-22-2020, 06:13 AM   #332
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Zeros went negative?

The one-month and three-month Treasury bill yields turned negative Wednesday.
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Old 04-22-2020, 07:49 AM   #333
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Not seeing it. Post a link?
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Old 04-22-2020, 08:19 AM   #334
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Check now at Fidelity - currently 6-month is negative 0.096%
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Old 04-22-2020, 08:32 AM   #335
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The one-month and three-month Treasury bill yields turned negative Wednesday.
The currently trading ones are positive. They went negative interest rate briefly about a month ago, but have been at positive yields since.
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Old 04-22-2020, 08:39 AM   #336
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Why would one buy them if they have negative returns.
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Old 04-22-2020, 08:48 AM   #337
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Why would one buy them if they have negative returns.
Because you have to hold them?

Or to play the "Take advantage of the FED" game. It goes like this:
1) Treasuries at auction can't be sold with a negative interest rate. Thus, the highest bid on a short term bill can be par (0%). So buy as many as you can.

2) Sell those on the open market at a negative rate (i.e. over par), capturing the difference as profit. The buyers are there because in some cases they have to hold them.

Isn't America great?

Here's a helper article. Yes, ZH has some crazy stuff but they also have interesting analysis that you won't find on MSM: https://www.zerohedge.com/markets/he...fits-every-day
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Old 04-22-2020, 03:54 PM   #338
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Not seeing it. Post a link?
Sorry, I read it on a source that I mostly don't like how they treat the news, so didn't want to give them the business, hehe! I did (and do) trust that they got the basics of this story right.
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Old 04-22-2020, 04:06 PM   #339
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I see some Ask prices with negative yields, but no Bid prices with negative yields. I can understand a trader buying them at a negative yield in hopes of selling them at a lower negative yield and capturing a capital gain, but I don't understand why any individual investor would buy them rather than just stash cash in an FDIC insured account.
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Old 04-22-2020, 05:31 PM   #340
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Have you looked at what 3 month and 1 month treasury interest rates are quoted on yahoo, CNBC, etc? Not seeing your negative rates.
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