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

[Golden sunsets]

That is interesting in that I recently set up my Navy Federal bank account with Vanguard and Vanguard sent to small deposits to my account and a withdrawal equal to the two small deposits combined. I later got a letter from Navy Federal saying that they did not allow transfers out from a share savings account to another financial institution based on the 6-transactions per month limit and that it should be on my checking account (but I don't have a checking account with them). So it sounds like the restriction will change.

That happened to me as well when I set up the account at Navy and tried to establish a link to Ally. The easiest thing to do is set up a checking account as Navy and use it as the transfer account. That will require an extra step on PB's part to move the money into the interest bearing account at Navy, unless they have some sort of automatic transfer option that you could set up.

 

[fisemper]

That is interesting in that I recently set up my Navy Federal bank account with Vanguard and Vanguard sent to small deposits to my account and a withdrawal equal to the two small deposits combined. I later got a letter from Navy Federal saying that they did not allow transfers out from a share savings account to another financial institution based on the 6-transactions per month limit and that it should be on my checking account (but I don't have a checking account with them). So it sounds like the restriction will change.

I have a MM with NFCU and that account is the only one I have had any notifications of withdrawal limits. Never any issues with share savings.

 

[pb4uski]

That happened to me as well when I set up the account at Navy and tried to establish a link to Ally. ...

I don't expect to do many transfers to/from this account or even Navy Federal generally... so it isn't a big deal to me either way... I was just surprised that Navy Federal's policy was that I could do ACHs to the share account but not out of the share account and the reasoning was lame. But I suspect that may change with the Fed's changes.

 

[Spock]

If their developers and designers are worth their salt, it is simply a parameter in a database table somewhere that they just update, from 6 to say 9999.

The 6 transfers limit has been in place for so long that it can creep into a lot of different places... "oh... that never changes, go ahead and hard code it".

Regardless of the implementation technique, banks are running reduced hours on short staff it has taken a week just to get an email response sent directly to a bankers direct mailbox (not using the generic "contact us" email access). I don't think implementing (and testing??) this change is going to be high on their priority list.

 

[REWahoo]

The easiest thing to do is set up a checking account as Navy and use it as the transfer account.

Exactly what I did last week. Navy has a free, no minimum balance, no frills "EveryDay Checking" account that works nicely for this purpose. Takes only a couple of minutes to set up online.

 

[Chuckanut]

Exactly what I did last week. Navy has a free, no minimum balance, no frills "EveryDay Checking" account that works nicely for this purpose. Takes only a couple of minutes to set up online.

I tried to enlist so I could open an account with them, but apparently the Navy has found out we older folks get CV19 easily. This is a No No in today's Navy. Poo, poor, pitiful me.

 

[pb4uski]

Sounds like age discrimination to me. You should sue.

 

[Richard4444]

Here's what I don't understand: The Fed is printing lots of money. That means increased inflation, which should mean a higher yield on CDs, MM, etc. But I guess I am wrong, so what am I missing?

Thanks, Rich

 

[pb4uski]

More money doesn't necessarily mean inflation... that money needs to be chasing goods in order to end up with inflation. Right now, people are sequestered and not spending money so even though there is a lot of money out there it isn't chasing goods... ergo, no inflation.

 

[harley]

Here's what I don't understand: The Fed is printing lots of money. That means increased inflation, which should mean a higher yield on CDs, MM, etc. But I guess I am wrong, so what am I missing?

Thanks, Rich

That's what I've been saying since 2009. So I guess we're both wrong.

 

[audreyh1]

Here's what I don't understand: The Fed is printing lots of money. That means increased inflation, which should mean a higher yield on CDs, MM, etc. But I guess I am wrong, so what am I missing?

Thanks, Rich

We’ve been through this since 2009, and inflation didn’t happen then. We flirted with deflation instead.

Once we’re through tough economic times, maybe inflation could happen, but it seems a long way away.

 

[BeachOrCity]

More money doesn't necessarily mean inflation... that money needs to be chasing goods in order to end up with inflation. Right now, people are sequestered and not spending money so even though there is a lot of money out there it isn't chasing goods... ergo, no inflation.

This guy makes a good case that its not just demand that may make inflation, but a lack of faith in fiat currency. Don't know if it will happen, but I think it is possible enough that people should think about what they own hard asset wise. CD's and Bonds would do even worse than equities under this type of scenario.

Oh, and I am definitely not saying this "will" happen, or even "probably" happen. But i do this it is becoming something that is closer to possible than it was 3 months ago.

https://seekingalpha.com/article/43...t-paul-singers-perspectives-letter-april-2020

 

[Dtail]

This guy makes a good case that its not just demand that may make inflation, but a lack of faith in fiat currency. Don't know if it will happen, but I think it is possible enough that people should think about what they own hard asset wise. CD's and Bonds would do even worse than equities under this type of scenario.

Oh, and I am definitely not saying this "will" happen, or even "probably" happen. But i do this it is becoming something that is closer to possible than it was 3 months ago.

https://seekingalpha.com/article/43...t-paul-singers-perspectives-letter-april-2020

I have mentioned this before, but if yields go up quite a bit, even if they stay under inflation, couldn't some folks lock in some nice real return rates on CD's, if there own personal inflation rate is much lower than the CPI?

 

[BeachOrCity]

The beauty of CDs vs bonds in a rising rate environment is you know in advance the price hit if you cash it out early.

 

[audreyh1]

Not true for brokered CDs.

Since bonds are generally bought through a brokerage, and treasuries to be sold on the secondary market have to go through a brokerage, you are in the same boat with CDs that you bought through a brokerage.

 

[CardsFan]

Not true for brokered CDs.

Quite true.

I only buy brokered CD's when I know I will not need the money for the term of the CD.

 

[Timeisprecious]

American Express Bank changes interest rate on its high yield savings account from 1.6% to 1.5% effective today.

- Rita

Yep; that really stinks. The interest rate on my Vio high-interest savings account has been slipping a bit, but it's still paying 1.69% - I think that's still one of the better rates out there.

 

[Spock]

We’ve been through this since 2009, and inflation didn’t happen then. We flirted with deflation instead.

Once we’re through tough economic times, maybe inflation could happen, but it seems a long way away.

I just went to re-order a pack of black beans and rice. Price is up 56% from January. Similar %'s for most of the food now.

 

[Montecfo]

I just went to re-order a pack of black beans and rice. Price is up 56% from January. Similar %'s for most of the food now.

I see food prices up somewhat, nothing like what you are seeing.

But it's to be expected. Supply and demand.

And OTOH gas/fuel prices way down, auto prices declining, etc.

Market for some goods has been disrupted, but it is still a market.

 

[Spock]

I see food prices up somewhat, nothing like what you are seeing.

But it's to be expected. Supply and demand.

And OTOH gas/fuel prices way down, auto prices declining, etc.

Market for some goods has been disrupted, but it is still a market.

I don't want to pull the rate thread off topic. So I'll be brief and then shutup about it (in this thread... )

Cheap gas is meaningless when I'm not/can't consume gas to make use of the cheap price. Same with cheap(er) cars (all I see is "we'll let you defer payment", not cheaper prices.
My day to day must spend $ (food) is skyrocketing right now so I just don't get it when people say "there is no inflation". And its not because I'm eating more while quarantined... I've cut back to 1.5 meals a day to make the food last longer and have lost ~30lbs in the last ~8 weeks... I'm going to have to spend even more $ buying smaller clothes.

 

[lucky penny]

Returning to the original topic: with interest rates sinking fast, CD offerings are looking pathetic. What's the best deal to lock in a rate for the next year or 2?

 

[Sunset]

I just went to re-order a pack of black beans and rice. Price is up 56% from January. Similar %'s for most of the food now.

Wow, I have not seen that, a month ago I bought chicken legs $0.54 /lb
Now they are $0.64 /lb --> that's a 18.5% rise in a month, a 222% yearly inflation rate

Still cheap in my books.

 

[pb4uski]

Returning to the original topic: with interest rates sinking fast, CD offerings are looking pathetic. What's the best deal to lock in a rate for the next year or 2?

The best deal that I know of right now is Navy Federal's 37-month IRA CD special of 3% APY. But you need to be able to qualify to be a member and it has to be IRA money (can be traditional or Roth). $150k max IIRC.

Put DW's Roth into one of these a few weeks ago.

 

[RunningBum]

Coming from someone with 30+ years of experience...I would not be surprised in the least that many will have hard coded values.

Hard coded. In a COBOL program.

 

[pb4uski]

Hard coded. In a COBOL program.

So if you went in and changed each instant of a limit of 6 to 999 or 99 wouldn't it get you pretty close?