Gotadimple
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2007
- Messages
- 2,615
American Express Bank high yield savings goes to 1.3% from 1.5% effective today, 5/14.
- Rita
- Rita
How about the Capital One Performance Savings Account?
https://www.capitalone.com/score500/[/URL]
If you factor in the cash bonus the effective interest rate comes out to 2.5%. I haven't seen any other savings accounts with rates anywhere near that. I read the disclosure and don't see any catches. Looks like all you have to do is maintain the balance in whatever tier you're in for 90 days to get the bonus.
How about the Capital One Performance Savings Account?
https://www.capitalone.com/score500/
If you factor in the cash bonus the effective interest rate comes out to 2.5%. I haven't seen any other savings accounts with rates anywhere near that. I read the disclosure and don't see any catches. Looks like all you have to do is maintain the balance in whatever tier you're in for 90 days to get the bonus.
I looked at the local banks and credit unions last week. On Friday I plunked down a chunk of change at a credit union for 1.5% 18 month CD. I felt like I was investing poorly at that rate, but we had the 'extra' in cash and wanted to do something with it. I checked the rate at the same credit union and the same terms today. It went down to 1.25%. So now I feel a little better. But around here, even going out to 3 or 5 years doesn't get anything much better.
Well, maybe not great, but at least not so awful. It's just how things are working lately and the sweet spot has shrunk from 2-3 years to 12-18 months.What looks Meh today will look great after awhile.
No, I had money in 3 month T-bills. I stopped the reinvestment last week before they came due.
Ginnie Maes are government backed secure, and pay over 2%, many are approximate payout of 3-5 years. Wouldn't this be a better option than a CD?
Thanks, Rich
Google "negative convexity."
I’ve been thinking about GNMAs and as long as interest rates stay low, they are fine. The gotcha is no one knows when interest rates will rise again.
Anyway, my core bond funds have plenty, so I don’t need to add.
OK, I will try (Again) to get this thread back on track.
American 1 Credit Union 5-Year IRA CD Is A Rate Leader
5-year IRA CD, 2.27% APY, $50 min deposit;
5-year CD, 2.00% APY, $500 min deposit.
There are no catches - Capital One is good when it comes to bonus offers. Also be aware, your balance just needs to be maintained through the 90 day period. On day 91, you can move the money out, regardless if they credit the bonus immediately (which in the past they have done very quickly), or up to 60 days later.
The effective interest rate is 5.5% over the bonus period. You're collecting 1% in 3 months, which is 4% effective. Then add on the 1.5% yield for the account and you have 5.5%. You get 2.5% if you leave the money there for a year and collect the amount shown in their chart. Still very good overall, assuming they keep the account at 1.5%, which is unlikely - it will continue heading lower.
Put your money in, leave it there for the 90 days, pull it out, and put it towards a different bank promo offer. Churn through the offers to compound the high effective rate the bonuses produce.
I’ve been using Dominion Energy Reliability Investment (DERI) for over a year now. Not FDIC insured, but so far rates have been very competitive. Before the COVID collapse, greater than $50k was @ 2.7%, now it’s at 2.0%, so rates are not guaranteed for any length of time. Be aware that when they post interest, they subtract federal tax, so the taxes amount is not compounding through the year, somewhat lowering the actual taxed return. I never investigated if the taxes had to be subtracted or if it was just a default.
I’ve been using Dominion Energy Reliability Investment (DERI) for over a year now. Not FDIC insured, but so far rates have been very competitive. Before the COVID collapse, greater than $50k was @ 2.7%, now it’s at 2.0%, so rates are not guaranteed for any length of time. Be aware that when they post interest, they subtract federal tax, so the taxes amount is not compounding through the year, somewhat lowering the actual taxed return. I never investigated if the taxes had to be subtracted or if it was just a default.
Risks Relating to the Notes
• An investment in the Notes does not create a bank account or depositor relationship between you and Dominion Energy or The Northern Trust Company, as the agent bank.
• The Notes are not equivalent to a deposit or other bank account and are not subject to the protection of Federal Deposit Insurance Corporation (FDIC) regulation or insurance or any other insurance.
• All of the money you invest will be used to purchase Notes for you. All interest earned on your Notes will be reinvested monthly in additional Notes for your investment. The Notes are not a money market fund, which is typically a diversified fund consisting of short-term debt of many issuers. The Notes are not subject to regulation under the Investment Company Act of 1940, as amended. Consequently, you will not have the benefit of federal laws and regulations designed to help maintain liquidity and a stable share price and set standards for credit quality, diversification and for maturity of individual securities and the overall portfolio.
• The Notes are not subject to the requirements of the Employee Retirement Income Security Act of 1974, as amended.
• The Notes are not a brokerage account with Georgeson Securities Corporation or any other broker-dealer and are not protected by the Securities Investor Protection Corporation under the Securities Investor Protection Act of 1970.
• Dominion Energy has not requested, and does not anticipate receiving, a rating for the Notes from any rating agency.
• The interest rate paid on investments in the Notes may not provide a basis for comparison with bank deposits or money market funds, which may use a different method of calculating yield, or other investments which pay a fixed yield for a stated period of time. The interest rate also does not necessarily bear any relation to the risks associated with or changes in our creditworthiness, credit rating or financial condition and may not compensate you for any increase in credit risk of investment in Notes.
• Although you may redeem your investment in the Notes at any time in whole or in part, in the manner explained in this prospectus, you are not able to transfer your investment in the Notes to someone else. The Notes are not listed on any securities exchange, and no secondary market for the Notes currently exists nor will one develop in the future. Consequently, there is no public market valuation of the Notes to assist you in evaluating the Notes or the yield earned.
• The Notes are unsecured debt obligations of Dominion Energy, Inc. Only the assets of Dominion Energy, Inc. are available to pay the principal and interest on the Notes.
• Dominion Energy, Inc. is a holding company, and we operate our businesses through our subsidiaries. Thus, our ability to meet our obligations under the Notes is dependent on the earnings and cash flows of those subsidiaries and the ability of those subsidiaries to pay dividends or to advance or repay funds to Dominion Energy. In addition, the rights that Dominion Energy and its creditors would have to participate in the assets of any such subsidiary upon the subsidiary’s liquidation or recapitalization will be subject to the prior claims of the subsidiary’s creditors.
• Holders of Notes will generally have a junior position to claims of creditors of our subsidiaries, including trade creditors, debt holders, secured creditors, taxing authorities, guarantee holders and any holders of preferred stock. In addition to trade debt, certain of our operating subsidiaries have ongoing corporate debt programs used to finance their business activities. As of December 31, 2018, on a consolidated basis (including securities due within one year and credit facility borrowings), we had approximately $35.1 billion of outstanding debt, of which approximately $21.3 billion was subsidiary debt, excluding SCANA. As of December 31, 2018, SCANA had approximately $6.8 billion principal amount of outstanding long-term debt (including securities due within one year and credit facility borrowings).
• The Notes are not guaranteed, endorsed or insured by any of our subsidiaries or any financial institution or government entity. Dominion Energy does not maintain reserves for its obligations under the Notes. There is a risk that Dominion Energy will be unable to meet interest payments or repay principal on the Notes. You may lose all or part of your investment, including accrued interest, if Dominion Energy is unable to pay its debts, enters bankruptcy or seeks protection from its creditors.
• You will not be able to exchange your Notes for any other securities of Dominion Energy.
I’ve been using Dominion Energy Reliability Investment (DERI) for over a year now. Not FDIC insured, but so far rates have been very competitive. Before the COVID collapse, greater than $50k was @ 2.7%, now it’s at 2.0%, so rates are not guaranteed for any length of time. Be aware that when they post interest, they subtract federal tax, so the taxes amount is not compounding through the year, somewhat lowering the actual taxed return. I never investigated if the taxes had to be subtracted or if it was just a default.