Best CD, MM Rates & Bank Special Deals Thread 2020 - Please post updates here

[jazz4cash]

Here are the specific instructions from the email (which is pasted onto the depositaccounts.com site:


1.Sign in to online banking
2.Navigate to the "Transfers" tab
3.Select the account to pull the money from
4.Select the certificate to apply the money to
5.Choose which year to apply the funds

 

[pb4uski]

The last part... "Chose which year to apply the funds" suggests that it applies to contributions only.

 

[almost there]

Understand, no change...

 

[jazz4cash]

Here are the specific instructions from the email (which is pasted onto the depositaccounts.com site:


1.Sign in to online banking
2.Navigate to the "Transfers" tab
3.Select the account to pull the money from
4.Select the certificate to apply the money to
5.Choose which year to apply the funds

These instructions do seem to work but there is nothing on the website to inform members of this feature.

 

[CardsFan]

Ok. After hearing so much about NFCU, I finally called today to see if I qualify for membership (Dad served in WWII, but I have NO documents to prove that). Took my info, and said to call back next Wednesday to check on it. No questions about dad, except which branch he served in. Hope it goes through. 3% for 37 months looks awfully good right about now.

 

[ShokWaveRider]

Ok. After hearing so much about NFCU, I finally called today to see if I qualify for membership (Dad served in WWII, but I have NO documents to prove that). Took my info, and said to call back next Wednesday to check on it. No questions about dad, except which branch he served in. Hope it goes through. 3% for 37 months looks awfully good right about now.

That is what I did, same for me Dad Served in the UK at a US Airbase in WWII. They never asked any questions just signed me up. I gave them the now decommissioned airbase he was at and that is all they needed.

 

[Bossman]

Navy Federal IRA Certificate

For us baby boomers that did not serve in the military, we can become a member of the Navy Federal Credit Union if either of our parents (likely deceased), served in the military. At this moment, 3% looks pretty good, although I have also been considering MYGA (Multi-year Guaranty Annuities) that return up to 3.6% and will allow you to withdraw interest without penalty.

As most of the peeps on this board, I do not like annuities, but MYGA are fixed income annuities that have no hidden fees. The downside is that you do have insurance company risk (some MYGAs have state guarantees) along with penalties if you withdraw the money early.

 

[pb4uski]

^^^^ And the surrender charges can be very high.... commonly starting at 10% in the first year and grading down to zero over 10 years so much higher than a CD. However, most annuities allow you to take out up to 10% penalty free once a year. YMMV and you d to look at the specifics of the product.

In some cases these fixed annuities can be a sensible CD substitute, particularly for those who want tax-deferred income because of ACA or to make more headroom for higher Roth conversions.

 

[ShokWaveRider]

At this moment, 3% looks pretty good, although I have also been considering MYGA (Multi-year Guaranty Annuities) that return up to 3.6% and will allow you to withdraw interest without penalty.

Rating of the Insurance company that offer this? Years needed to get this rate?

 

[ShokWaveRider]

For us baby boomers that did not serve in the military, we can become a member of the Navy Federal Credit Union if either of our parents (likely deceased), served in the military.

That is exactly what I did. My father was a pilot in the RAF (UK Royal Air Force) and worked for a time on a USA UK Airbase on loan as a Pilot for the US Air Force. He did that for 2 years.

NFCU accepted that with very little proof, other than the historical information that the Base was in fact a US base (Now De-Commissioned). I got that information from the WEB, it was good enough for them. The fact he was awarded a Medal for his services probably helped, but it was a UK Medal not a USA Medal.

 

[almost there]

Side note on the Navy 37 month ira/roth 3% CD.
One per account holder. I have one as a Roth, tried for a 2nd one
as a Trad IRA. No dice....

 

[jazz4cash]

Side note on the Navy 37 month ira/roth 3% CD.
One per account holder. I have one as a Roth, tried for a 2nd one
as a Trad IRA. No dice....

I wondered about that. Nice try and thanks for the info.

 

[Bossman]

MYGA term and company rating for 3.6%

Rating of the Insurance company that offer this? Years needed to get this rate?

To get 3.6%, the term is 5 years with a company that is rated BBB+. If your state guarantees the annuity amount, this may be a good alternative to a CD. Once again, you are allowed to withdraw the interest on an annual basis with no penalty. I am reluctant to purchase any annuity (fixed income or not), but with CD rates so low, there may be no other viable option.

 

[njhowie]

To get 3.6%, the term is 5 years with a company that is rated BBB+. If your state guarantees the annuity amount, this may be a good alternative to a CD. Once again, you are allowed to withdraw the interest on an annual basis with no penalty. I am reluctant to purchase any annuity (fixed income or not), but with CD rates so low, there may be no other viable option.

Do not begin to think that way, as there is always an alternative. It's simply a matter of whether you will accept that alternative, which likely provides a lower return, but will also have less risk.

This is typical of this market in general today, and folks need to be extremely careful in chasing yield and settling for lesser quality to get that yield. Low interest rates are pushing folks to do this, and a soaring stock market is once again enticing many to think they can/should move (some of) their fixed income allocation elsewhere. Retirees and folks who primarily rely on fixed income are very susceptible to this line of thinking.

There are folks here who wouldn't consider purchasing life insurance with an insurer with a rating as low as A, now we're looking at CD alternatives with a BBB+ company?

Buyer beware.

 

[Tracer]

There are folks here who wouldn't consider purchasing life insurance with an insurer with a rating as low as A, now we're looking at CD alternatives with a BBB+ company?

Buyer beware.

If the state you live in has a healthy reserve to cover insurance companies who default on life insurance and annuities, isn't that effectively as good as having FDIC insurance on a CD?

 

[pb4uski]

Do not begin to think that way, as there is always an alternative. It's simply a matter of whether you will accept that alternative, which likely provides a lower return, but will also have less risk.

This is typical of this market in general today, and folks need to be extremely careful in chasing yield and settling for lesser quality to get that yield. Low interest rates are pushing folks to do this, and a soaring stock market is once again enticing many to think they can/should move (some of) their fixed income allocation elsewhere. Retirees and folks who primarily rely on fixed income are very susceptible to this line of thinking.

There are folks here who wouldn't consider purchasing life insurance with an insurer with a rating as low as A, now we're looking at CD alternatives with a BBB+ company?

Buyer beware.

If the state you live in has a healthy reserve to cover insurance companies who default on life insurance and annuities, isn't that effectively as good as having FDIC insurance on a CD?

I worked in the industry and I think you're both off-base. First, unless you're buying from an already troubled company, a 5-year SPDA has very little credit risk. The company would have to, within a short 5-years, blow through reserves and surplus before there would be risk of default. Insurers are regulated by state insurance commissioners and once risk-based surplus declines to a certain percentage the insurance commissioner is required to intervene. And then on top of that there is state guaranty fund coverage. So basically, a heck of a lot needs to go wrong in order for there to be a default and defaults are very, very rare... in fact, I can't think of any in the last 20 years. At the same time, it isn't anywhere close to full faith and credit like an FDIC insured CD. I would peg the credit risk of most SPDAs to an A/AA rated corporate bond(depending on the issuer).... but certainly not the AAA akin to an FDIC insured CD.

Now all of that said, BBB+ is a little on the low side, but is the BBB+ is based on a long time horizon.... in my view the short maturity significantly reduces the risk of default.

 

[camfused]

...there may be no other viable option...

You may also consider routes like proper.com (personal loan lending), or similar.

 

[ShokWaveRider]

Oregon Community Credit Union 60-Month Jumbo IRA Earns 3.20% AP

Deal Summary:

60-month Jumbo IRA Certificate, 3.20% APY, $100k minimum; 60-month Regular IRA Certificate, 3.15% APY, $500 minimum.

Availability:

Residents of 28 Oregon counties; University of Oregon relationship (possible easy membership requirement); State of Oregon employees.

 

[Bruno]

Got enrolled for my extra $100. Its not great but i like doing business with Marcus.

https://www.marcus.com/us/en/saving...schl=emd&cid=DR20200121&lid=Jan100PromoHeader

 

[brewer12345]

Navy Federal has just started up a new CD special. 17 month maturity, 2.25% rate, $50 to open, additional dump ins allowed to a max balance of $75k. Every time Navy offers these deal I get in for the minimum as a placeholder. That way I have the option of moving money there for the short term if the rates are better than I can do in a t bill or money market fund. Currently I have the option of dumping in to a couple of these deals from a little while back for 2.75% maturing in March or 3% maturing in June.

 

[RetireAge50]

Navy Federal has just started up a new CD special. 17 month maturity, 2.25% rate, $50 to open, additional dump ins allowed to a max balance of $75k. Every time Navy offers these deal I get in for the minimum as a placeholder. That way I have the option of moving money there for the short term if the rates are better than I can do in a t bill or money market fund. Currently I have the option of dumping in to a couple of these deals from a little while back for 2.75% maturing in March or 3% maturing in June.

That is a cool idea and tip thanks. Just set one via the app and $50 transfer.

 

[friar1610]

That is a cool idea and tip thanks. Just set one via the app and $50 transfer.

+1. Just did the same for the 17 month non-IRA cert. Mulling over whether or not to go through the added paperwork to do the same for the 37 month IRA only as it would have to be a transfer from my VG T-IRA.

 

[jazz4cash]

Navy Federal has just started up a new CD special. 17 month maturity, 2.25% rate, $50 to open, additional dump ins allowed to a max balance of $75k. Every time Navy offers these deal I get in for the minimum as a placeholder. That way I have the option of moving money there for the short term if the rates are better than I can do in a t bill or money market fund. Currently I have the option of dumping in to a couple of these deals from a little while back for 2.75% maturing in March or 3% maturing in June.

+1
Thanks for the update. Gotta love the placeholder strategy.

 

[ShokWaveRider]

Earn Up To $500 When Opening a New Capital One 360 Performance Savings

Deal Summary: Bonus between $100 and $500 when opening a new 360 Performance Saving account with $10k-$50k deposits of new money.

Availability: Nationwide through online application.

Now through March 31, 2020, Capital One is offering a bonus of up to $500 when opening a new 360 Performance Savings account.

 

[ShokWaveRider]

Transportation Federal Credit Union Has Rate Leader 5-Year CD

Deal Summary: 5-year Jumbo CD, 2.98% APY, $100k min; 5-year CD, 2.78% APY, $1k min.

Availability: Easy membership through American Consumer Council. Active or retired employee, military personnel, contractor, and other related occupational group affiliated with U.S. Department of Transportation or Federal Aviation Administration.