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

[Montecfo]

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.

These are interesting. Duke Energy has a similar offering. They are demand notes.

These are not comparable to FDIC insured accounts but I think can be considered for your next tier of cash. It looks like the rate floats but not the value.

These are debt, they are not like preferred stock or any other equity.

 

[pb4uski]

Seems akin to commercial paper sold to the public. Interesting idea.

 

[njhowie]

Seems akin to commercial paper sold to the public. Interesting idea.

It's being used as a cash/CD/MM alternative, with none of the protections. How much would you have to "invest" to make it worth doing? If we're talking about a cash/savings/MM account where I keep my $10,000 that I use for monthly expenses, whether I get 2% or 0% is of no concern to me. That I get anything is a win. Here, I'll take 0% with full protection.

If I have $100,000 to keep in this account, why will I put this amount fully at risk in an unsecured 2% yielding investment in a utility company? Why not simply buy the earliest maturity secured bond they offer? It gets down to the difference in cash/CD/MM versus an investment...which this Dominion account is.

 

[pb4uski]

I dunno. Current brokered CD rates at Fidelity are pathetic... 0.3% for 9 months to 2 years. VMMXX has an SEC yield of .34% and a distribution yield of .42%.

With the tiered structure on $100k you would yield 1.915%... so a 1.615% premium over CDs for a BBB+ credit. I'm not advocating these but it doesn't seem like they are horrible to me as long as the buyer understands the credit risk involved compared to a CD or MM.

FWIW, their 4/1/2021 maturity corporate bond (D4341370) is currently yielding .698%

 

[njhowie]

It's been my contention for some time now that folks are underpricing risk, and I still believe that is the case. An ultra-low interest rate environment will do that. There is a point where it makes sense to pass and cash is your best option - even if you are getting 0% on it.

 

[Dtail]

Purchased a 3 yr 260k MYGA from Mass Mutual for my parents at 1.90%.
They will not need this money, so surrender fees are not important.
Willing to take the risk on highly rated Mass Mutual.

 

[RE2Boys]

These demand notes are also available from Ally Bank, not to be confused with Ally FDIC accounts.

https://www.ally.com/about/investor/demand-notes/

 

[njhowie]

These demand notes are also available from Ally Bank, not to be confused with Ally FDIC accounts.

https://www.ally.com/about/investor/demand-notes/

For rates which barely pay more than their savings account at the upper tiers, I don't see the draw to them.

Additionally, most will not be eligible:

1. Confirm eligibility
Demands Notes are available to all employees and retirees of Ally Financial, as well as their immediate family members (spouse, children, parents, siblings and grandparents of the employee or retiree). Eligibility also extends to associated Ally Financial dealers and their employees.

 

[Gotadimple]

American Express high yield savings rate reduced to 1.15% down from 1.5% effective today. Their website claims 10X the national average.

I like to compare them to Live Oak Bank, a fairly newish bank with good rates on high yield savings accounts. Today's rate for a personal account is 1.35%. They claim 13X the national average.

- Rita

 

[WhiskeyJack]

I did one last year. Read the terms very carefully and follow them exactly. Closing I went to a branch and closed the account. You could probably do it online.

Has anyone tried CitiBank offer of $700 bonus with $50000 deposit for 90 days .Link at: https://banking.citi.com/cbol/check...1&ProspectID=295D75F38C444F42A40A2FF552CDC9BC
I believe after 90 days, one can down grade the account to the next tier to have $10K or less maintained without a monthly fee (instead of having to maintain a balance of $50K to avoid the $30 monthly fee)
Also, I don't know if one can cancel a CitiBank account online, or one has to go to a physical location to do that (that would be too much work imo)

I am considering opening an account with Citi to get this offer. I saw this in the T&Cs.

Using Inter-Institution Transfers from Citibank is easy. You can:

Make one-time and recurring transfers, sent using either the Standard or Next Day delivery service

Make a transfer simply by setting up your non-Citi account by providing the account number and the ABA number

See the chart for the amounts you can transfer
Standard Service Next-Day Service

Outgoing to External Accounts
Daily $10,000 $1,000
30 day rolling calendar period $15,000 $2,500

Does this mean that i can only transfer out within a 30 day period a maximum of $15,000. The Citi rep I talked to on the phone could not answer this question. Thanks

 

[calmloki]

Do a pull from another bank vs a push from Citi. Recommend Discover or Ally as "hub" banks to pull to as they have real sizable daily limits going in or out.

 

[jollystomper]

Received email from Ally today at 3pm Eastern. Online savings account APR dropping from 1.25% to 1.10% effective 6/12.

 

[aja8888]

Received email from Ally today at 3pm Eastern. Online savings account APR dropping from 1.25% to 1.10% effective 6/12.

I got that too. Totally expected.

I have a friend who is a mortgage broker and he sent me a text saying that he can book 30 year, 2.75% mortgages right now. He said he is swamped with refi's, not new mortgages.

 

[Dtail]

I got that too. Totally expected.

I have a friend who is a mortgage broker and he sent me a text saying that he can book 30 year, 2.75% mortgages right now. He said he is swamped with refi's, not new mortgages.

I always seem to get that Ally email a day later.

 

[njhowie]

I have a friend who is a mortgage broker and he sent me a text saying that he can book 30 year, 2.75% mortgages right now. He said he is swamped with refi's, not new mortgages.

What is he quoting for 15 year?

 

[Drake3287]

Funny how the real estate market is right now in some area's of the country with this pandemic going on. Here in the Bay Area homes are selling over night. I just sold my deceased mother's million dollar home this week. Never even hit the MLS.

All because of record low rates.

 

[MJ]

I am really happy to have opened a GTE promo 3.04% 5 year add last August for me and my wife with a deposit of $500 each. As money is coming to maturity now I am moving the available money into it. I'll have a safe haven for the next 4+ years. Their early withdrawal penalty is 180 days so even withdrawing some money after one year, it would be the equivalent of a 1 year at 1.5% plus apparently there is no penalty for withdrawing any accumulated interest. Who would have thought back in the August interest rates would tank so badly.

 

[Dtail]

I am really happy to have opened a GTE promo 3.04% 5 year add last August for me and my wife with a deposit of $500 each. As money is coming to maturity now I am moving the available money into it. I'll have a safe haven for the next 4+ years. Their early withdrawal penalty is 180 days so even withdrawing some money after one year, it would be the equivalent of a 1 year at 1.5% plus apparently there is no penalty for withdrawing any accumulated interest. Who would have thought back in the August interest rates would tank so badly.

Did the same with GTE, but should have opened a separate one for the DGF and I vs. one joint one for $500. However also opened an IRA for 3.30% for the DGF.

Tempting to go over the NCUA limit with the rates are currently, plus could go lower, but not willing to risk any principle.

 

[njhowie]

"Effective today, the rate on our Marcus high-yield Online Savings Account has been adjusted to 1.05% from 1.30% APY."

 

[Oilcan]

"Effective today, the rate on our Marcus high-yield Online Savings Account has been adjusted to 1.05% from 1.30% APY."

Not a surprise either.

 

[Dtail]

"Effective today, the rate on our Marcus high-yield Online Savings Account has been adjusted to 1.05% from 1.30% APY."

Where do you think the composite low will be for online savings accounts?
I am thinking around 0.80%.

 

[jazz4cash]

We were headed for a reset with rates normalizing and a shot at a 4% 5yr CD. A chance to load up and hunker down but too many whiners thought any rate hike is bad, the markets spooked, the Fed rolled over and now has only nuclear options to boost the economy.

 

[Perryinva]

Just did the $50k for $450 bonuses for each of us in a 360 account at Capital One. First time I ever got an offer to add to an existing account for a bonus vs having to be a new customer. They are also at 1.15%, so pulling $100k from our 2.0% HY savings still nets about $680 at the lower rate. In before 6/30 &out after 9/30.

 

[lauradrops]

Just did the $50k for $450 bonuses for each of us in a 360 account at Capital One. First time I ever got an offer to add to an existing account for a bonus vs having to be a new customer. They are also at 1.15%, so pulling $100k from our 2.0% HY savings still nets about $680 at the lower rate. In before 6/30 &out after 9/30.

As of this morning, it is already down to 1%. When we opened it 6/1 it was 1.3%, but we were new accounts with each getting 500 in bonus. Still worth it for 3 months.

 

[aja8888]

Decisions.....let's see...I have an ALLY High Yield 2.85% CD maturing in late July. Renewal CD is at 1% for 12 months while their savings account interest rate sits at 1.1%. I wonder what I am going to do. LOL!