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

[RE2Boys]

I got this email today from Marcus.

Get a $100 Savings Bonus when you deposit $10,000 in new funds to a Marcus Online Savings Account.

Wish I got this offer, would have been glad to comply. Just moved all funds out of Marcus just a week ago. Logged in but didn't see any notices that it would apply to me.

 

[Sojourner]

I've been playing this game for a while (i.e., chasing small sign-up/transfer bonuses from various banks and brokerages), but I think I've ultimately decided—at least for now—that the amounts are too low to bother with. Why go to the trouble of opening a new bank account somewhere, transferring a bunch of money in, waiting for weeks or months, then getting a mere $100 or $200 or $300 in return? I've found that I can quite easily make that much by selling a few put or call options in a fairly low-risk way every month. Obviously, that is not going to appeal to everyone, but it works for me. The $$$/effort ratio is far better, IME, even though the risks are a bit higher.

 

[audreyh1]

Just thought I'd pass along a recent experience chasing after highest yield on cash accounts for my monthly retirement paycheck. Last July based on a postal mail ad for HYSA and subsequent google search I opened a High Yield Savings Account called "Accelerate Savings" with citiBank. It has been a nightmare and I'm in the slow process of closing the account as we speak. Although my problems with the account may not apply to everyone, you should at least be aware of the limitations they impose on you getting your money back out when you need it. First, there is a $15,000/month limit on transfers to other institutions, and $10,000 per transaction and/or per day. The clock resets each time you make a transfer so it is hard to use up the entire $15,000 every month. I've found it impossible to set a monthly check for $10,000 due to previously staggered withdrawals unless I skip a month all together and start over. When I tried to close the account out today on the phone I was told they can't do it over the phone, I have to use their mobile app or website. AND I can only withdraw $50,000 maximum every 24 hours and each withdrawal carries a $30 fee! They make it not only difficult but expensive to take your own money out and use it. Bottom line, ask lots of questions based on your planned usage before you make a deposit in a HYSA from citiBank. This would be a real shocker if planned for an emergency account and a sizeable amount was needed. Other institutions may charge in a similar fashion but I can't say from experience. I'm moving the money as fast as I can to my Fidelity Brokerage Account and taking the small hit on interest rate. They have no limits on frequency or amounts. Lesson learned the hard way!

A lot of places have daily and monthly transaction limits. However, I have never been limited by those if I initiate the transfer from the receiving institution.

 

[rk911]

...the amounts are too low to bother with. Why go to the trouble of opening a new bank account somewhere, transferring a bunch of money in, waiting for weeks or months, then getting a mere $100 or $200 or $300 in return....

+1

 

[RE2Boys]

Wish I got this offer, would have been glad to comply. Just moved all funds out of Marcus just a week ago. Logged in but didn't see any notices that it would apply to me.

Found that this offer is open to both new and existing customers of Marcus. See: https://www.marcus.com/us/en/savings/osa-savingsbonus-1

I had an account with zero balance as moved my funds about a week ago, now moved the $10K back.

I hate the offers that require so many debit card transactions or direct deposits. Too convoluted and easy to make a mistake, but easy to do a one time transfer.

 

[target2019]

Banks should simply send money to us, just like rich Uncle Sam!

 

[njhowie]

Originally Posted by Sojourner
...the amounts are too low to bother with. Why go to the trouble of opening a new bank account somewhere, transferring a bunch of money in, waiting for weeks or months, then getting a mere $100 or $200 or $300 in return....

+1

In removing the remainder of the original post, you left out exactly what is wrong with the argument.

We're currently in a 90 day $200 for $5000 offer. To make $200 in a high yield savings account yielding 0.5%, you'd need to have $40,000 sit in it for a year.

When interest rates are so low, the bonus offers are well worth the bother in my view.

 

[jazz4cash]

I might do the Marcus offer but I won’t open a new account just for a few hundred $ bonus. The language in the linked Marcus offer is unintelligible.

 

[njhowie]

I had an account with zero balance as moved my funds about a week ago, now moved the $10K back.

That may be too close that they do not consider it new money. You may want to consult with them to verify.

 

[Dtail]

In removing the remainder of the original post, you left out exactly what is wrong with the argument.

We're currently in a 90 day $200 for $5000 offer. To make $200 in a high yield savings account yielding 0.5%, you'd need to have $40,000 sit in it for a year.

When interest rates are so low, the bonus offers are well worth the bother in my view.

+1 especially with a savings account vs. a checking account which typically requires more hoops to jump through.

 

[njhowie]

I might do the Marcus offer but I won’t open a new account just for a few hundred $ bonus. The language in the linked Marcus offer is unintelligible.

$100 for $10,000 is towards the low end of offers at this time. But, we've done a few Marcus offers in the past, and you just put the money in, don't touch it, and they pay exactly on time. No other requirements. They are very good.

Also, you can open the account, and once the bonus is paid, drop the balance down to zero and just leave the account open - there are no fees for zero balance. When they come up with another bonus offer in the future, the account will already be there and you can move the funds in. That's where we are today - got the email(s) this afternoon, accounts are already open, will move money in closer to the deadline.

 

[jazz4cash]

On the Marcus bonus, it looks like the account balance before the transfer is not available for withdrawal for 90 days. I think I did one other one like that and I drew down the account to minimize the amount locked up. I can’t believe the banks are doing this but they must think it works. My Penfed 5% CDs matured finally so I could do this without jumping through too many hoops.

 

[rk911]

In removing the remainder of the original post, you left out exactly what is wrong with the argument.

We're currently in a 90 day $200 for $5000 offer. To make $200 in a high yield savings account yielding 0.5%, you'd need to have $40,000 sit in it for a year.

When interest rates are so low, the bonus offers are well worth the bother in my view.

my point is that for $100 or $200 is just not worth the effort involved. that's not going to change our lives one bit. our monthly income/spending is significantly in the black and our NW is in the low 7-figures. chasing those kind of rewards or juggling bunches of credit cards for points, for us, is just not worth the effort.

 

[calmloki]

Marcus is really good for these bonus amounts - think we've done 3 in the last year and a half for different amounts. I'd prefer to have 3% (I'm sloppy and figure a 3 month requirement uses our money for 4 months) on more than $20K, but we had $5.52 sitting in each of our two accounts from the last time I drained them, so just enrolled and moved $20k. Real easy when you have remote accounts already set up.

 

[njhowie]

my point is that for $100 or $200 is just not worth the effort involved. that's not going to change our lives one bit. our monthly income/spending is significantly in the black and our NW is in the low 7-figures. chasing those kind of rewards or juggling bunches of credit cards for points, for us, is just not worth the effort.

For us, it's $1000 to $2000 a year. That doesn't change our lives one bit either. However, when you put some context around it, like "It pays our auto insurance for the year" or "It pays our electric bills for the year", well, then the hour or two I spend on it a year is well worth the effort. I'm retired - time is the one thing I have an abundance of.

I like having my money work for me. I keep a money market statement from March 2010 tacked to the wall right in front of my computer showing "30 Day Yield: 0.01%" just to remind me what receiving $1.74 over a 3 month period for $72,000 looks like. Never again. $100, $200, $300 for clicking a few buttons and letting my money sit in one bank's computer versus some other? Who would believe they actually pay so much for doing so little? 10 or 20 years ago who could have imagined such a thing? I'll pick up the $100 bill every time I see it on the ground - it's not too much effort for me.

 

[Dtail]

For us, it's $1000 to $2000 a year. That doesn't change our lives one bit either. However, when you put some context around it, like "It pays our auto insurance for the year" or "It pays our electric bills for the year", well, then the hour or two I spend on it a year is well worth the effort. I'm retired - time is the one thing I have an abundance of.

I like having my money work for me. I keep a money market statement from March 2010 tacked to the wall right in front of my computer showing "30 Day Yield: 0.01%" just to remind me what receiving $1.74 over a 3 month period for $72,000 looks like. Never again. $100, $200, $300 for clicking a few buttons and letting my money sit in one bank's computer versus some other? Who would believe they actually pay so much for doing so little? 10 or 20 years ago who could have imagined such a thing? I'll pick up the $100 bill every time I see it on the ground - it's not too much effort for me.

Some of the same arguments are made for folks not interested in managing CC rewards, which admittingly is a little more work, but not too much more.

 

[calmloki]

Hunh. This morning Ally bank says our 1.9% CD has matured and is now sitting in our Ally savings account earning 0.5%. I'm going to move $10K of it over to a Navy FCU addon CD I set up that matures in November that pays 1.34%. Figure that will earn about $73 more than if I let it sit in Ally at current rates. It will take less time than typing this out has. Why would I not take the extra $73 and the satisfaction that comes from having the money working a bit harder? How is that different than maximizing bank bonus money?

 

[Chuckanut]

The Vanguard Short Term Investment grade fund is looking better and better these days.

 

[Sojourner]

Some of the same arguments are made for folks not interested in managing CC rewards, which admittingly is a little more work, but not too much more.

Even though I've stopped chasing bank account sign-up/transfer bonuses, I view larger CC bonuses a bit differently. For example, I'm currently eyeing the Chase Ink Business Cash CC and its $750 sign-up bonus. If used for booking travel through the Chase UR portal, the bonus is actually more like $935... and that's after-tax money. This is better than getting a $1,000 taxable bonus from a bank or brokerage account sign-up deal. IMHO, that passes my threshold for "worth my time and effort", whereas the smaller, taxable bank sign-up bonuses generally don't.

 

[GenXguy]

I have a few NFCU CDs coming up for renewal, all 3%. Just checked their renewal rates - .55% for 12 month, .6% for 18 month.

I would consider moving to Ally for .6% on a 12 month, but I think NFCU has a limit on transferring out.

 

[Timeisprecious]

Banks should simply send money to us, just like rich Uncle Sam!

RIIIIIIIGHT!

 

[Sojourner]

I have a few NFCU CDs coming up for renewal, all 3%. Just checked their renewal rates - .55% for 12 month, .6% for 18 month.

I would consider moving to Ally for .6% on a 12 month, but I think NFCU has a limit on transferring out.

The difference between 0.6% and 0.55% amounts to a mere $50 over an entire year for a $100,000 CD (for example). Just pointing out the tiny amounts of money under consideration here.

 

[Dtail]

I have a few NFCU CDs coming up for renewal, all 3%. Just checked their renewal rates - .55% for 12 month, .6% for 18 month.

I would consider moving to Ally for .6% on a 12 month, but I think NFCU has a limit on transferring out.

Perhaps move it from the Ally side.

 

[Montecfo]

The Vanguard Short Term Investment grade fund is looking better and better these days.

I put a bit of my maturing CD money in the market neutral Merger Fund (MERFX), per discussion in last years thread. It is merger arbitrage, pays interest once a year. I'm guessing I will earn 2-3 percent in this low rate environment where I expect there will be a lot of merger activity.

I also bought a closed end fund which invests in bank loans, which have been out of favor (10 pct discount to NAV) recently. Definitely more risk than a CD but I expect little change in short rates in this unique year.

And I still have CDs at 3.3 pct and one maturing mid-year. And my MM at CFG Bank appears to be holding now at .72 pct.

 

[rrppve]

MYGAs to replace CDs

With CD rates so low, I’ve switched to investing maturing CDs into insurance company issued MYGAs, which are very similar. You can find 3% for 5 year MYGAs. Granted they are not FDIC insured. One advantage is that taxes on earnings are deferred until the money is withdrawn.