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Old 01-19-2020, 09:20 AM   #41
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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.
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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.
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Old 01-19-2020, 04:58 PM   #42
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...there may be no other viable option...
You may also consider routes like proper.com (personal loan lending), or similar.
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Old 01-28-2020, 08:56 AM   #43
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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.
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Old 02-02-2020, 07:51 AM   #44
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Got enrolled for my extra $100. Its not great but i like doing business with Marcus.

https://www.marcus.com/us/en/savings...100PromoHeader
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Old 02-04-2020, 11:09 AM   #45
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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.
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Old 02-04-2020, 11:25 AM   #46
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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.
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Old 02-05-2020, 08:07 PM   #47
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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.
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Old 02-05-2020, 10:38 PM   #48
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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.
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Old 02-10-2020, 09:56 AM   #49
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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.
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Old 02-10-2020, 09:58 AM   #50
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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.
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Old 02-15-2020, 05:31 AM   #51
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Ally Bank recently came out with a 13 month 2.1% CD special. They also raised their no penalty 11 month CD to 1.9% for $25K or mire. Was 1.85%.

I often park funds in their no penalty CDs at the beginning of the year while I await other deals.
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Old 02-15-2020, 12:00 PM   #52
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Ally Bank recently came out with a 13 month 2.1% CD special. They also raised their no penalty 11 month CD to 1.9% for $25K or mire. Was 1.85%.

I often park funds in their no penalty CDs at the beginning of the year while I await other deals.
Thanks, just upped some low interest no penalty ones I had, and told couple of other folks (not on here) , so they could grab some more decent interest rates.
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Old 02-15-2020, 01:25 PM   #53
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Live Oak Bank 2.15% APR for 12-month and 18-month CDs. Penalty is 90 days simple interest for withdrawals on CDs with terms less than 24 months. Interest is declared and paid monthly.

They are an internet bank,and focus on small business. Click on the personal tab for rates and terms.

- Rita
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Old 02-21-2020, 09:27 AM   #54
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CIT bank. Have had some bucks with them for over a year, they did a free wire out for my account with over $25k, so that was nice. DO keep $25k with them to earn the full interest rate; they have tiered interest, which bit me once.
They have had several specials, current one is $300 bonus on top of 1.75% for $50k in new money. Existing account only has to keep those funds there for 30 days.

https://cit.com/cit-bank/savings-bui...-bonus-spring/
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Old 02-21-2020, 07:31 PM   #55
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Isnít there a dedicated thread for bank bonus deals?

When I see a new post here I think Iím gonna find some killer CD offer. Iím not quite ready to jump through the bank bonus deal hoops yet (but may be getting close).
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Old 02-21-2020, 07:47 PM   #56
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Gee. Sorry to get you all excited for nothing - This is a short term 1.75% account with some bonus money on top that brings it up to an interesting rate, but it's not a CD, just a Bank Special Deal. I just like making free money.
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Old 02-22-2020, 06:48 AM   #57
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Isn’t there a dedicated thread for bank bonus deals?
This post is for both CD and Bank Deals.... Check the title. "Best CD, MM Rates & Bank Special Deals Thread 2020"
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Old 02-22-2020, 10:52 AM   #58
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This post is for both CD and Bank Deals.... Check the title. "Best CD, MM Rates & Bank Special Deals Thread 2020"


Oh, you mean I should read the ENTIRE title?....all the way to the end?
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Old 02-22-2020, 11:23 AM   #59
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Wow, watching the 5 year treasury interest rate drop like a rock! I’m glad I already finished locking in rates on a few short-term CDs.
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Old 02-22-2020, 11:32 AM   #60
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Wow, watching the 5 year treasury interest rate drop like a rock! Iím glad I already finished locking in rates on a few short-term CDs.
Yep.
Got the 1.9% no penalty Ally Bank CD, plus still have 4.5 years left on the GTE 3.30% 5 year CD and will add to it when my 14 month Ally CD matures.
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