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Old 12-13-2020, 05:25 PM   #941
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Are you talking about Beam?

https://www.depositaccounts.com/blog...-fintechs.html
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Old 12-13-2020, 05:40 PM   #942
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Yep, that’s the one I was thinking of.
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Old 12-13-2020, 05:51 PM   #943
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Old 12-17-2020, 10:56 AM   #944
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amex savings is down to .5%
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Old 12-17-2020, 11:11 AM   #945
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amex savings is down to .5%
I was waiting for this to happen. They have been earlier than others to declare a decrease. So when Ally declared .50% I was surprised that Amex didn't follow immediately.
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Old 12-25-2020, 04:17 AM   #946
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In sync with the race to the bottom, DERI is now down to 1.5% for $50k or more. So based on that, I went ahead & paid off the rental house mortgage ($95k) that was at 3.5% from it, rather than refi it. In the middle of a refi for the primary home that will drop P&I about $300/mo.
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Old 12-25-2020, 10:15 AM   #947
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While I did pay one mortgage down by 60+%, I still plan on maintaining mortgages and will start the refinance process right after New Year. I agree that rates right now don't lend themselves to carrying mortgages, but I'm sure enough that in 5-10 years things will be different and the 2.5% mortgages will essentially be free money. Of course, if you read back through my history making financial prognostications you'll see that following my advice can lead to less than happy endings. But I feel pretty confident about this. YMMV.
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Old 12-25-2020, 12:14 PM   #948
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I purchased some GNMAs which yield ~2% with an expected duration of ~4.5 years. FDIC guaranteed, compared to a CD, it seems like a no brainer (but I've been wrong way too many times).

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Old 12-25-2020, 12:55 PM   #949
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I purchased some GNMAs which yield ~2% with an expected duration of ~4.5 years. FDIC guaranteed, compared to a CD, it seems like a no brainer (but I've been wrong way too many times).

Rich
Rich, did you purchase a GNMA fund or actual individual bonds?
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Old 12-25-2020, 01:53 PM   #950
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Negative Convexity is a feature of mortgage backed bonds including GNMAs.
Do-It-Yourself (DIY) Investor: What is Negative Convexity?
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Old 12-26-2020, 11:24 AM   #951
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Negative Convexity is a feature of mortgage backed bonds including GNMAs.
Do-It-Yourself (DIY) Investor: What is Negative Convexity?


Ha! After reading the first sentence in the linked article.......

“Investors today are scrambling for yield, and one place they are looking is at funds of mortgage-backed securities”

I glanced at the date.......Nov, 2011!
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Old 12-26-2020, 12:58 PM   #952
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GNMA- the refi risk makes it like you are buying bonds callable at any time. So rates fall and refis mean return of capital and likely some capital loss due to reduced overall coupon.

Rates rise and capital loss results like other fixed income security.

They work best in my opinion in stable rate environment. We appear to be in one-but for how long?
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Old 12-26-2020, 01:49 PM   #953
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I purchased some GNMAs which yield ~2% with an expected duration of ~4.5 years. FDIC guaranteed, compared to a CD, it seems like a no brainer (but I've been wrong way too many times).

Rich
GNMAs are not FDIC guaranteed. FDIC covers bank depositors.

GNMAs are backed by the US government, but not FDIC.
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Old 12-26-2020, 02:27 PM   #954
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The GNMA funds seem to have held up pretty well over a decade of falling rates. Kinda like everyone thought interest rates couldn’t go lower and stay depressed for a decade.
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Old 12-26-2020, 05:06 PM   #955
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Ha! After reading the first sentence in the linked article.......

“Investors today are scrambling for yield, and one place they are looking is at funds of mortgage-backed securities”

I glanced at the date.......Nov, 2011!
I provided a link that explains the negative convexity characteristic of mortgage-backed bonds. It’s still valid. They behave worse than non-mortgage high quality bonds do during rising interest rates, and suddenly GNMA fund durations extend. Which is why they pay higher rates. Whether the current rates make up for near future convexity issues - above my pay grade.
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Repatriating CD money
Old 12-26-2020, 09:09 PM   #956
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Repatriating CD money

As my CDs are maturing I have made a plan to begin moving funds back to my brokerage. I was able to negotiate a .3% cash payment with no strings attached.

In these times of .5 percent MM funds, I feel very good about that.
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Old 12-29-2020, 06:22 AM   #957
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Is the .3% a one time payment or is it annual interest on cash in the account?
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Old 12-30-2020, 07:36 PM   #958
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Not sure if this has been mentioned, but Chase has a deal going where if you're not an existing customer you can start a checking account (with Direct Deposit) and get $200, open a savings account ($15K for 90 days) and get $200, or do both and get $500. I'm not eligible having done the last deal, but I thought I'd pass it on in case anyone is interested.

https://account.chase.com/consumer/b...asehome_3/hero
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Old 12-30-2020, 11:35 PM   #959
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Not sure if this has been mentioned, but Chase has a deal going where if you're not an existing customer you can start a checking account (with Direct Deposit) and get $200, open a savings account ($15K for 90 days) and get $200, or do both and get $500. I'm not eligible having done the last deal, but I thought I'd pass it on in case anyone is interested.

https://account.chase.com/consumer/b...asehome_3/hero
Yes, I just got the $200 for opening a savings account with them.

In total I made $1,000 by shifting around a total of $20,000 to 3 different banks via the open a new account. During the year. It was fun .....
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Old 12-30-2020, 11:38 PM   #960
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Is the .3% a one time payment or is it annual interest on cash in the account?
It's one time. This is a brokerage account so I will be investing the funds in short-term bonds or one of the other ideas mentioned here.

Point is some brokers will give you money for moving $ there. Mine is E-Trade. I believe TDA and Ally will do this too. Not sure about the others.
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