Best CD, MM Rates & Bank Special Deals Thread 2021 - Please post updates here

[Spanky]

Might not be bad if doing both, depending how long you have to tie up the money. Other than the bonus you probably earn close to nothing on those.

But if I wanted a new national bank account that might make it more compelling.

tying up cash for 90 days for a $500 bonus is not too bad. Citibank offers another deal to earn up to $1,500 bonus https://banking.citi.com/cbol/prior...1&ProspectID=F735AC7B5C884ACA8C42CC36AEA8CD39.

 

[MJ]

Wells Fargo is offering for $200 for opening a checking account with a $1000 or more direct deposit and $300 for a saving account with a minimum balance of $25K. Thoughts?

My google search has not brought up any reference to this bonus offer. Do you have a link and possibly a bonus code you can share. I'd like to see if it would work in my state. The one I got is much less for the same requirements.

 

[simple girl]

The current i-bond rate is great:

The initial interest rate on new Series I savings bonds is the second-highest ever: 7.12 percent.

Of course you are limited in how much you can purchase per person ($10K electronic, $5K in paper with your federal refund), so it's a small investment, but it's something!

 

[Chuckanut]

Of course you are limited in how much you can purchase per person ($10K electronic, $5K in paper with your federal refund), so it's a small investment, but it's something!

I would buy the bonds anyway. Time passes regardless of whether or not one buys the bonds this year.

Assuming one was interested in inflation protected securities, if she did not buy her 10 or 15K worth of iBonds this year, how much better or worse off would she be in 10 years? 20 years?

The best time to plant a tree was 30 years ago. The next best time is today.

 

[simple girl]

I would buy the bonds anyway. Time passes regardless of whether or not one buys the bonds this year.

Assuming one was interested in inflation protected securities, if she did not buy her 10 or 15K worth of iBonds this year, how much better or worse off would she be in 10 years? 20 years?

Agreed. I'm definitely buying. They will add up to 1 year's worth of "bucket money" for us eventually! I bought some last year for the first time, thanks to this thread, and I'm super happy I did.

 

[Spanky]

My google search has not brought up any reference to this bonus offer. Do you have a link and possibly a bonus code you can share. I'd like to see if it would work in my state. The one I got is much less for the same requirements.

The offer came from mail. See attached.

 

[Sunset]

The current i-bond rate is great:

The initial interest rate on new Series I savings bonds is the second-highest ever: 7.12 percent.

Of course you are limited in how much you can purchase per person ($10K electronic, $5K in paper with your federal refund), so it's a small investment, but it's something!

You can also register an account as an entity if you have one (trust, LLC, sole proprietorship, ...etc). The same limit of 10K applies per year for each entity.
Entities cannot set beneficiaries.

 

[SunnyOne]

bankrate.com shows highest paying HYSAs at about .50/.55. Are there other sources I should be checking for better rates on HYSAs? Thanks

 

[Another Reader]

bankrate.com shows highest paying HYSAs at about .50/.55. Are there other sources I should be checking for better rates on HYSAs? Thanks

No, but I prefer depositaccounts.com as an unbiased source.

 

[Sojourner]

You can also register an account as an entity if you have one (trust, LLC, sole proprietorship, ...etc). The same limit of 10K applies per year for each entity.
Entities cannot set beneficiaries.

Hmm, so then I could set up an account for my sole proprietorship, for myself, and for my wife, and through those accounts buy $30k of I-bonds annually? I assume I'd have to use my sole proprietorship's tax ID (EIN?) instead of my own personal SSN when doing this?

 

[MJ]

The offer came from mail. See attached.

Thanks for the image, but can you provide the code in the letter. I'd like to see if it is available in my state. I go a similar letter with the same Dec 10th expiration but it is offering only $400 for $1000+ direct deposit AND $25k both in the same checking account with no mention of a savings account. I wouldn't mind getting another $100 if the code you have can be used in my state.

 

[jazz4cash]

The current i-bond rate is great:



The initial interest rate on new Series I savings bonds is the second-highest ever: 7.12 percent.



Of course you are limited in how much you can purchase per person ($10K electronic, $5K in paper with your federal refund), so it's a small investment, but it's something!

I plan on making my first I-bond purchase within 60 days when a 2% CD matures. I keep seeing this fantastic rate but have to remind myself it’s a 6 month rate on a 30 year bond. I expect the 2nd 6 month rate will be good but probably lower overall for the 5 yr holding period to avoid penalty if I understand correctly.

 

[pb4uski]

You can bail after 12 months with a 3 month of interest early withdrawal penalty.

The way I figure it if I invest $10,000 and get 7.12% for 6 months and 0% for the next 6 months and receive $10,356 twelve months later that is still 3.56% for the 12 months... not too bad.

 

[simple girl]

You can bail after 12 months with a 3 month of interest early withdrawal penalty.

The way I figure it if I invest $10,000 and get 7.12% for 6 months and 0% for the next 6 months and receive $10,356 twelve months later that is still 3.56% for the 12 months... not too bad.

That's likely what we will do as I'm using the i-bonds I purchased this year plus the ones I will buy in 2022 as a decent portion of our 2023 bucket. Even with the loss of 3 months of interest, it's way better than any other CD or MMA out there right now.

We use a 3 year bucket strategy and finding half decent places to store that money is pretty difficult right now. Thankfully, we live on a relatively small budget so not getting much interest on that amount of cash has really minimal impact upon our overall asset allocation and return.

 

[simple girl]

NASA FCU just announced some special CD rates.

9 mo: .75%
15 mo: 1%

https://www.nasafcu.com/rates-and-fees/checking-savings/share-certificate-rates

See the rules for each, minimum amounts of new $ required. Running through 11/30/21.

 

[pb4uski]

Thanks, but today's rates are really hard to get excited about. I'd be more tempted to take a chance and exceed the NCUA level and add money to my GTE 3% CD.

 

[calmloki]

I convinced myself that the interest earned beyond the NCUA insured amount could be risked. Greed. Also just signed up for a couple I bonds for Gal and I. Not a big amount to record but gather ye pennies where ye may. Probably will pick up more of them in January.

Thanks for the impetus.

 

[simple girl]

Thanks, but today's rates are really hard to get excited about. I'd be more tempted to take a chance and exceed the NCUA level and add money to my GTE 3% CD.

Agreed! I have that GTE 3% CD (YAY!), but it doesn't come due until 2024. I need a shorter term place to park some of the $ we need for 2022 so the NASA 9 month rate is worth my consideration.

 

[Montecfo]

Agreed! I have that GTE 3% CD (YAY!), but it doesn't come due until 2024. I need a shorter term place to park some of the $ we need for 2022 so the NASA 9 month rate is worth my consideration.

I am a member at NASA but T-Mobile Money is more attractive: 1 percent savings account, FDIC insured.

 

[MJ]

Agreed! I have that GTE 3% CD (YAY!), but it doesn't come due until 2024. I need a shorter term place to park some of the $ we need for 2022 so the NASA 9 month rate is worth my consideration.

I also have the GTE CD. Unless it has changed, their EWP is 6 months so if you don't need the money for at least 9 months, you still can earn more with the money stored in GTE. For example, NASA 100,000 9 months @ .75% is $562 and GTE 3 months @ 3.01% is $744 . Of course, check with GTE, just to confirm my understanding.

 

[calmloki]

You can pull earned interest from the GTE CD, but if you get into the amount you've deposited I believe you break the 3% CD. Check me, but do have a care - don't want to lose that 3% unless you are aware and expect it.

 

[Sunset]

Hmm, so then I could set up an account for my sole proprietorship, for myself, and for my wife, and through those accounts buy $30k of I-bonds annually? I assume I'd have to use my sole proprietorship's tax ID (EIN?) instead of my own personal SSN when doing this?

Yes $30K [-]annually[/-], each year, (plus $5K if overpay income tax).

I used my own SSN for my own account and my sole proprietorship entity account, as I run my sole proprietorship without a separate EIN.
I do have a separate EIN for my proprietorship 401K plan, but that is the only place I use it.

I also used my bank account and home address for my sole proprietorship as it's allowed and that is how I bill and cash my checks.

entity owned I-bonds cannot have a beneficiary, so if I needed to cash some, those would be the first to go.

 

[John Galt III]

You can bail after 12 months with a 3 month of interest early withdrawal penalty.

The way I figure it if I invest $10,000 and get 7.12% for 6 months and 0% for the next 6 months and receive $10,356 twelve months later that is still 3.56% for the 12 months... not too bad.

Already spent 45 minutes googling for this, even at TreasuryDirect.gov.


Question: If I buy $10,000 I-Bond and wait a few years, then redeem it, is the $10,000 initial investment still there? (Yes, I know there will be a last-3-months interest penalty).



Or has the $10,000 possibly decreased (or increased) due to market fluctuations (demand for I-bonds) ?



I ask because I once invested a TIPS fund (different thing, I know) and the value decreased over time.



I am hoping the I-bonds hold their initial principal amount.



Bonus question : if I hold the i-bond for at least 5 years, does the penalty disappear?



Thanks

 

[MandM]

Already spent 45 minutes googling for this, even at TreasuryDirect.gov.


Question: If I buy $10,000 I-Bond and wait a few years, then redeem it, is the $10,000 initial investment still there? (Yes, I know there will be a last-3-months interest penalty).



Or has the $10,000 possibly decreased (or increased) due to market fluctuations (demand for I-bonds) ?



I ask because I once invested a TIPS fund (different thing, I know) and the value decreased over time.



I am hoping the I-bonds hold their initial principal amount.



Bonus question : if I hold the i-bond for at least 5 years, does the penalty disappear?



Thanks

Correct, with I-bonds purchased from Treasury direct, the principle is always safe and interest earned is paid out less 3 month penalty interest for less than 5 years held. (This assumes full faith of US govt. does not default during your holding period).

Sent from my SM-G955U using Early Retirement Forum mobile app

 

[OverThinkMuch]

U.S. Treasury Bonds are considered risk free investments. It's as close as guaranteeing you will get your money back as you can get.

What isn't guaranteed is the market value of those bonds, which is how they're priced in a bond fund.
$10,000 in 10 year bond 1.63% => $11,755
$10,000 in 10 year bond 2.00% => $12,190

If you buy a $10,000 bond and rates immediately go up to 2%, your bond's market value drops by 4%. Why? Because $9,643 earning 2%/year becomes $11,755. It's the same bond, but the market wants a 2% investment, not a 1.63% investment.