Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here

[John Galt III]

Just bought a few grand of a 5 year 4.85 % callable CD at Vanguard. Will cancel it if a comparable non callable version pops up.

 

[John Galt III]

I’m waiting for Vanguard to approve my link to Utah First Credit Union so that I can open up my 5% 22 month CD, but now I’m wondering if it makes sense to hold off for a better rate. I’m not thrilled with Vanguard at the moment. They won’t let me send money to a bank account until almost two weeks after I add it to my account. Pretty ridiculous.

Yeah, I had to wait 7 calendar days after transferring $$$ to the Vanguard settlement fund, before I could use it to buy CDs on the Vanguard website.

 

[Ready]

So buy some now, and if it goes higher buy some more. Folks really need to stop playing for the last tenth of a percent. Come on, where have rates been the past 10 years? Now you're pussyfooting because 5% isn't good enough? It's laughable if you think about it.

I would if I could but Vanguard has my money hostage and won’t let me send it to Utah First for another week or so.

 

[njhowie]

I would if I could but Vanguard has my money hostage and won’t let me send it to Utah First for another week or so.

Your post said buy the 5% or wonder whether to wait for a better rate. That's what I addressed.

 

[lordjust]

FWIW, I was talking with my Fidelity guy this morning and he said their money market, FZDXX, should be around 4.25% next week. It's about 3.8% now, so that's interesting.

That seems high in that amount of time … I’m all for it but still….

Maybe we will see higher bonds/cds then..

 

[njhowie]

Just now I bought secondary market, 8 month 6.5%. It is callable Feb 28, but coupon is 3.1%, so they likely won't be calling. However, if they do call, because I purchased at 97.6, yield jumps to 15.4% for the 2.5 months.

 

[Spock]

Just now I bought secondary market, 8 month 6.5%. It is callable Feb 28, but coupon is 3.1%, so they likely won't be calling. However, if they do call, because I purchased at 97.6, yield jumps to 15.4% for the 2.5 months.

Do you have some sort of automatic alerts/notifications setup for when these come up or do you just sit in front of the screen and push refresh all day?

 

[John Galt III]

Just now I bought secondary market, 8 month 6.5%. It is callable Feb 28, but coupon is 3.1%, so they likely won't be calling. However, if they do call, because I purchased at 97.6, yield jumps to 15.4% for the 2.5 months.

Wow, NJ, that's the way to do it! They call, you win ! It was a CD, not a bond ?

 

[njhowie]

Wow, NJ, that's the way to do it! They call, you win ! It was a CD, not a bond ?

Yes - JPM 46593LFA2

 

[sengsational]

They filled it at $0.10 more than your limit? Hmmm.

ETA: Ah, that's the mark-up.

 

[njhowie]

They filled it at $0.10 more than your limit? Hmmm.

$1 commission/CD, it is factored in to my yields. That's just how they display it. No different than how they show fill on any bond purchase.

 

[audreyh1]

$1 commission per 1000?

 

[Car-Guy]

My first batch of (~20) CD's that I bought several months ago is starting to mature this month. About 10 more will mature between now and the end of March. A few others are a little further out. Since I've only been buying shorter term CD's, I'm thinking "now" to just park that cash in something like Schwabs MM funds that's paying 3.8%. That's only ~1% less that I'm getting on the CD's I've been buying and it's available to me in less than 24 hours.

I don't see the MM funds going down anytime soon and they will probably keep going up after what JP did and said yesterday. So now I'm thinking of letting the CD's mature and moving it all to SNAXX in the early 2nd qt of next year. That pays even a little more (~4% today) until this "plays out" a little longer and before committing my fixed asset investments for longer terms...

 

[njhowie]

$1 commission per 1000?

Yes, that is how secondary market CDs are sold at Fidelity and other brokerages.

 

[lawman]

Yes - JPM 46593LFA2

Where are you buying these? Are you placing limit orders for specific issues? Nothing like what you and Freedom are buying ever shows up on Schwab's offerings..

 

[Fotodog]

Same question as Lawman, how are you finding these rates? I check Schwab twice daily but never see anything this good.

I did try the process of finding a bond on the FINRA site, calling the bond desk, and trying to place an order. I wanted to place a limit order but was told they can’t do that. They would attempt to fill an order and would call back by the end of the day. They did call back, only to tell me the order couldn’t be filled.

 

[sengsational]

Where are you buying these? Are you placing limit orders for specific issues? Nothing like what you and Freedom are buying ever shows up on Schwab's offerings..

I see it's Fidelity. And I presume limit orders.

My question is what's the ratio between filled orders and unfilled? IOW, do you place a boatload of limit orders?

 

[PatrickA5]

Listening to Powell’s speech today, he seems to think yeah get to over 5% first half next year and stay there for a long time due to the very tight labor market. He talks like the 5% fed rate could last into the following year. They revise this outlook every Fed meeting. Next meeting is in February.


So the outlook above would be for a MM fund like FZDXX, not for 3-5 year bonds which respond more to economic outlook.

Yes, I agree. I listened to his speech. It sounds like short term rates (like FZDXX) will continue to stay high throughout next year and maybe longer. Based on his outlook, I'd expect FZDXX to be somewhere around 5% - 5.25% for most of next year assuming a couple of .25 bumps early in the year.

At this point, I'm not looking to tie up my money for long term (3-5 years), because this is the money I'll likely have to spend over the next couple of years.

 

[njhowie]

I see it's Fidelity. And I presume limit orders.

My question is what's the ratio between filled orders and unfilled? IOW, do you place a boatload of limit orders?

It wasn't a limit order. That's what was offered and I paid the ask. It shows as limit because that's how it goes in on the entry screen - there is no "market order" for bonds or CDs - it's a limit order at the ask.

 

[pb4uski]

Yes - JPM 46593LFA2

No availability on Schwab

While it might be that anything with an ask sold out, it is frustrating that it seems that sometimes that some brokerages have some and others don't.

 

[audreyh1]

Generally it seems like it takes FZDXX a couple up weeks to catch up to the new Fed funds rate. It was at 3.80% yesterday, so we can watch how quickly it gets to 4.25%.

 

[njhowie]

No availability on Schwab

While it might be that anything with an ask sold out, it is frustrating that it seems that sometimes that some brokerages have some and others don't.

Secondary market CD orders come and go, sometimes quickly. If there is a good price, it will certainly go quicker once someone finds it.

Fidelity still has this one, though obviously the price is not as good as what I got it for earlier.

 

[erkevin]

I had a ($50k) rung of my ladder mature this AM. I went with a Morgan Stanley issue: 4.650%, three-year callable that pays monthly. The first call is not until December 2023.

 

[lordjust]

Same question as Lawman, how are you finding these rates? I check Schwab twice daily but never see anything this good.

I did try the process of finding a bond on the FINRA site, calling the bond desk, and trying to place an order. I wanted to place a limit order but was told they can’t do that. They would attempt to fill an order and would call back by the end of the day. They did call back, only to tell me the order couldn’t be filled.

I think you guys all need to get a fidelity account. I am a Schwab customer (mainly) and i can tell you that i see more offerings on Fidelity.

 

[ShokWaveRider]

Secondary market CD orders come and go, sometimes quickly. If there is a good price, it will certainly go quicker once someone finds it.

Fidelity still has this one, though obviously the price is not as good as what I got it for earlier.

I wish I understood this. What is the actual interest one would get (anual interest) at the end of the period 6.1% or 4.5% divided by 8 months?