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

[pb4uski]

Hmmm...You made me look but I don't see any add-on CDs at NFCU right now.

As far as what to do, I think many of us are putting year-end CD specials from the likes of Penfed and NFCU on our Xmas list this year. My 5% Penfed CDs mature in Jan.

If you look under the 'More' tab you'll see a bunch of different Easy Start certificates. Those allow additional deposits.

I'm not very optimistic that we'll see some great CD specials this December

 

[jazz4cash]

I don't even have the more tab anymore. It went away when they re-vamped their website. I know because the variable rate CDs used to hide on that tab also but are now listed with the "standard Cds" I'll keep looking tho.....

EDIT: Found it. They buried it pretty good too. If I use the link at the top of the page, there is no "more" section and no "more" tab but if I follow the link at the bottom of the homepage I can dig down to the "Easy Start" certificates which are add-on products.

Thanks for the head up!

 

[Rosedala]

Consider an Ally 5 yr high rate CD: https://www.ally.com/bank/high-yield-cd/

Here is why I buy these instead of shorter term ones:
It pays 1% but if rates go up after 21 months, you can cash it, pay the penalty and still net more than the 2yr CD pays even if the 2 yr had no penalty.

Here are the effective rates including the penalty cost for the 5 yr CD :

1 Year0.58%
2 Years0.79%
3 Years0.86%
4 Years0.90%
5 Years1.00%

Sunset, you can get a Wings.com 5 yr. CD for 1.31% now. When I started the membership it was 1.41% but went down in the middle of my process. I may get the 1.31% because the-next-to-nothing interest may continue for a few more years...according to those who know. However, I'm still thinking about it and I'm sure by the time I decide, they'll "trim" it again... Oh, if you have available more money like 100K they go up quite a bit. Go see it. Good luck!

P.S. I saw quite a few others that paid up to over 2%, so if you're lucky and can get those I think it's a good decision. Browse depositaccounts.com.

 

[Sunset]

I'm thinking about buying some I-bonds ($10K for me , and $10K for DW). The treasury direct site says they are paying a total of 1.68% for the next 5.75 months.
That is: 0% plus inflation rate.

This suggests to me, that a regular CD at 1% is less than inflation, which sucks...

My Question is: Does it matter when in the month I buy the I-bond ?, as in do they earn daily interest or not.

 

[mrfeh]

I'm thinking about buying some I-bonds ($10K for me , and $10K for DW). The treasury direct site says they are paying a total of 1.68% for the next 5.75 months.
That is: 0% plus inflation rate.

This suggests to me, that a regular CD at 1% is less than inflation, which sucks...

My Question is: Does it matter when in the month I buy the I-bond ?, as in do they earn daily interest or not.

I've been buying the max each year for the last 7-8 years.

Buy them at the end of the month. Interest is earned at the end of the month, and you get credit for the entire month regardless of when you buy them.

 

[Dave J]

I'm thinking about buying some I-bonds ($10K for me , and $10K for DW).

My Question is: Does it matter when in the month I buy the I-bond ?, as in do they earn daily interest or not.

They get credited interest on the first day of the month for the previous month. From Treasury Direct......
*******************************************
When are earnings added to the I bond?
I bonds increase in value on the first day of each month, and interest is compounded semiannually based on each I bond's issue date. An I bond's issue date is the month and year in which full payment for the bond is received.
************************************************
So you buy them near the end of the month, but don't wait until the last day as it takes a little time to actually complete, especially the first time. I would recommend doing it about the 25th or so. When you want to cash in, do it on the first or second day of the month, as you don't earn the interest unless you hold it until the first of the next month. But when you buy them, you get a whole month of interest no matter what day you actually purchase them.

The website is not 100% user friendly, but after you figure it out, it works fine. Due to the low limits of purchasing, I would not recommend them to someone unless they are going to do it every year for several years for whatever reason to get a decent amount. I have owned some since 2001.

 

[harley]

I found a $20 bill in a parking lot a week ago. That beats the return on my savings account for the past year. I'm going to start hanging out in parking lots until rates increase.

 

[aja8888]

I found a $20 bill in a parking lot a week ago. That beats the return on my savings account for the past year. I'm going to start hanging out in parking lots until rates increase.

I'm looking for change left in vending machines and collecting aluminum drink cans which have a $0.05 return per can. What cans I can't return due to damage (car ran it over), I save in a 55 gallon drum for selling to scrap dealers.

Sure beats 0.01% interest in my bank account and it only takes a few hours per day!

 

[Sunset]

Thanks to mrfeh and Dave J I will plan to buy my bonds near the end of the month. It works out well, as it may take some effort to get DW onboard.

I'm planning to buy $10K each this month, and come January buy another 10K each.

One aspect I don't like, from my reading is that they don't allow to designate POD/TOD like a bank CD allows. Once the amount is over $100K they require probate before transferring the money.
Sure one can put the bond in 2 names, but that doesn't really solve the issue, and is probably not flexible to change.

 

[lucky penny]

Due to the low limits of purchasing, I would not recommend them to someone unless they are going to do it every year for several years for whatever reason to get a decent amount.

Also, income tax refunds can be issued in I bonds, which are not counted towards the annual purchase limit.

 

[RE2Boys]

Maximum I bonds through refund is $5K.

https://www.irs.gov/refunds/now-you...savings-bonds-for-anyone-with-your-tax-refund

 

[jazz4cash]

Also, income tax refunds can be issued in I bonds, which are not counted towards the annual purchase limit.

That seems like a significant (beneficial) loophole if this is an extension of the 10k limit as lucky penny says. The 10k limit is frequently mentioned as an objections to ibonds. It should be pretty easy to plan for a big refund for the explicit purpose of buying more ibonds. Will be looking into that.

 

[JoeWras]

I-bond question: DW and I are jointly listed on Treasury direct.

Can I just buy 20k and call it a day? Or is there something I have to do with the registration? I've previously stopped at 10k each year.

 

[Dave J]

I-bond question: DW and I are jointly listed on Treasury direct.

Can I just buy 20k and call it a day? Or is there something I have to do with the registration? I've previously stopped at 10k each year.

I think 1 set in your SS number of 10k and 1 set in her SS number in 10K is how you have to do it.

 

[JoeWras]

I think 1 set in your SS number of 10k and 1 set in her SS number in 10K is how you have to do it.

Ah, so the account I log onto is [-]probably[/-] in my SS # "WITH DW." I'd have to get her a log in (she doesn't really like this stuff), and have her buy an I-bond from that account "WITH ME."

That makes sense that the primary name SS # is the limiting factor.

 

[Dave J]

Ah, so the account I log onto is [-]probably[/-] in my SS # "WITH DW." I'd have to get her a log in (she doesn't really like this stuff), and have her buy an I-bond from that account "WITH ME."

That makes sense that the primary name SS # is the limiting factor.

Make sure you set up her account a few days before you want to buy, , as I remember it took a little while to prove out the outside account to enable buying from it. Don't wait until the 29th or 30th or you may be unhappy.

 

[pb4uski]

Maximum I bonds through refund is $5K.

https://www.irs.gov/refunds/now-you...savings-bonds-for-anyone-with-your-tax-refund

Is the $5k limit per return or per taxpayer? (So MFJ could do 2 * $5k).

Also, given how slow they have been to process returns and refunds I might be hesitant.

 

[Chuckanut]

I recently got a Freedom Flex card from Chase, and now have the 20,000 bonus points in my account. Yea!

Now I will rake in the big cash by getting 4% for groceries for the first year. I figure that will beat the heck out of the picayune interest the same bank would give me on a one year CD for the same amount as I spend on groceries.

 

[jazz4cash]

Here’s what can happen when fintech companies pretend to be banks. I never heard of these guys before.

Beam users still can’t get their money. Now the lawsuits have begun. https://www.cnbc.com/2020/11/10/bea...are|com.apple.UIKit.activity.CopyToPasteboard

 

[pb4uski]

IMO, it was fradulent for Beam to assert that deposits with them were FDIC insured... Beam's deposits with FDIC-insured banks were obviously FDIC-insured, but not Beam's customer's deposits to Beam.

Is my money FDIC-insured?

Yes, funds deposited through Beam are ALWAYS FDIC-insured by member banks to the full amount.

The answer may have been technically correct but it was misleading and didn't properly answer the question.

 

[erkevin]

Thank you for the Ibonds idea; have several CDs maturing soon and this is a great place to keep some money.

 

[jazz4cash]

Goldman Sachs lowered the rate on their Marcus online savings from .6 to .50%

 

[JoeWras]

Goldman Sachs lowered the rate on their Marcus online savings from .6 to .50%

Arrrgggh!!!

 

[Dtail]

Goldman Sachs lowered the rate on their Marcus online savings from .6 to .50%

Can Ally be far behind?

 

[Bruno]

Goldman Sachs lowered the rate on their Marcus online savings from .6 to .50%

Me too.. I just moved 50k last week from CIT bank to Marcus. Probably a waste of time to move it to Discover paying .55.