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01-19-2022, 11:39 AM
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#21
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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New issue call-protected 5-year brokered CD at Fidelity 1.5%
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01-20-2022, 01:17 PM
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#22
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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New issue 10-year brokered CDs at Fidelity 2.0%-2.05%
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01-20-2022, 01:18 PM
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#23
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Moderator Emeritus
Join Date: Apr 2011
Location: Conroe, Texas
Posts: 18,593
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Quote:
Originally Posted by njhowie
New issue 10-year brokered CDs at Fidelity 2.0%-2.05%
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Ten years......ugh.
__________________
*********Go Astros!*********
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01-20-2022, 01:19 PM
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#24
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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The important point is that they are on the move...higher. It's double what it was a year ago.
I just did a quick check on depositaccounts.com and these 2% rates for 10 years are significantly higher than any they are showing.
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01-20-2022, 01:26 PM
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#25
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Posts: 3,046
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Quote:
Originally Posted by njhowie
New issue call-protected 5-year brokered CD at Fidelity 1.5%
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5 year Treasury is at 1.61% right now. Safer and no state income taxes.
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01-20-2022, 01:36 PM
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#26
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Quote:
Originally Posted by jim584672
5 year Treasury is at 1.61% right now. Safer and no state income taxes.
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True.
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01-20-2022, 01:48 PM
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#27
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,134
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I think there are number organizations with an institutional memory that goes back more than a dozen years who would love to lock in borrowing 2% money for a decade.
For me, as a lender, there is no way I am going for 2% for ten years. Not when we have inflation racing at 7%. One year of 7% inflation, and 3.5 years of the 10 years' 2% earning is gone. I'm willing to hunker down at 0.4 to 1% for another year just to see if I can do better. If not, well.... that's why I own common stock index funds. Eventually, they should save the day.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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01-20-2022, 02:00 PM
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#28
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Recycles dryer sheets
Join Date: Aug 2013
Location: Norcal, Silly-Con Valley
Posts: 248
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How long does it take for CD yields to catch-up with inflation?
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01-20-2022, 02:06 PM
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#29
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Quote:
Originally Posted by slowsaver
How long does it take for CD yields to catch-up with inflation?
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Think of price of gas at the pump - falls slowly but goes up quickly. CD yields work the same ... in reverse. The banks aren't going to offer more yield until competitive forces push them to do it.
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01-20-2022, 02:17 PM
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#30
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Quote:
Originally Posted by jim584672
5 year Treasury is at 1.61% right now. Safer and no state income taxes.
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New issue 5-year brokered CD now 1.8% through Fidelity.
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01-20-2022, 03:03 PM
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#31
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,515
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Quote:
Originally Posted by slowsaver
How long does it take for CD yields to catch-up with inflation?
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They are not tied to inflation strictly speaking. They are more related to other interest rates, which may exceed or trail inflation rates for a long time.
In some ways, worrying that cds may not beat inflation misses the point. The point is to earn the highest safe yield, and understand that such yields often do not exceed inflation.
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01-20-2022, 03:05 PM
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#32
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
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Got a targeted e-mail from Marcus today. Deposit at least $10,000 into an online savings account by 2/16/22, leave it for 90 days, and get $100. I get the 0.6 percent AARP rate, so that would be a nice bonus. Just as soon as I finish my i-bond deposit for the year...
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01-20-2022, 03:10 PM
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#33
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,925
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Quote:
Originally Posted by Another Reader
Got a targeted e-mail from Marcus today. Deposit at least $10,000 into an online savings account by 2/16/22, leave it for 90 days, and get $100. I get the 0.6 percent AARP rate, so that would be a nice bonus. Just as soon as I finish my i-bond deposit for the year...
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New or existing customers - not targeted.
https://www.marcus.com/us/en/savings/osa-savingsbonus
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01-20-2022, 05:34 PM
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#34
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,134
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Quote:
Originally Posted by slowsaver
How long does it take for CD yields to catch-up with inflation?
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In the time period of the mid 1970's to early 1980's we had high inflation, often double digits. Ugh.
CD and Treasury yields never matched inflation especially after taxes. But they also did not lag it as badly as they lag now. Today, other than the iBonds, rates are being kept down while inflation is going through the roof. That's what makes this time very bad. IIRC, I remember Treasuries and CD rates in the high single digits. I even bought one Treasury over 10%.
Take a look at the chart of one year t-bill rates on this website;
https://www.macrotrends.net/2492/1-y...te-yield-chart
One example: November 1979, about 12%.
A bit over three years ago you could still get over 2.5%.
Today's rates are pathetic.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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01-20-2022, 05:56 PM
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#35
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,197
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Quote:
Originally Posted by njhowie
New issue 5-year brokered CD now 1.8% through Fidelity.
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The A++ MYGA from New York Life for 5 years soon to be 2.0%.
Somewhat apples to apples if going to maturity.
__________________
TGIM
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01-20-2022, 11:21 PM
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#36
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,515
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Not sure why I would want to commit to anything longer than a year when FED has 3-4 planned rate hikes and $9T of bonds to possibly sell.
Fact is, I have some existing CDs at 3.4 pct, some I-bonds at 7 pct and a lot of plain old cash earning 1 percent. Seems right for now.
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01-21-2022, 09:30 AM
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#37
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 2,775
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Quote:
Originally Posted by Montecfo
Not sure why I would want to commit to anything longer than a year when FED has 3-4 planned rate hikes and $9T of bonds to possibly sell.
Fact is, I have some existing CDs at 3.4 pct, some I-bonds at 7 pct and a lot of plain old cash earning 1 percent. Seems right for now.
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Very similar position here. Penfed cd's at 3.5%. Andrews FCU cd's at 3.0% approx, obtained a few years ago.. And I just checked current Andrews CD rates and I could not believe it. 7 year cd rate is 0.3%. Can that be right?
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01-21-2022, 02:23 PM
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#38
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: Independence
Posts: 7,271
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Pssh! We just got word that a flipper loan we have out at 10% is paying off. Set up a T-Mobile money account to take care of some at a whole 1% - so in a year it will earn about what it was making in a month. ooogg.
__________________
"Be kind whenever possible. It is always possible." Dalai Lama
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01-22-2022, 05:46 PM
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#39
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 2,775
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Quote:
Originally Posted by John Galt III
Very similar position here. Penfed cd's at 3.5%. Andrews FCU cd's at 3.0% approx, obtained a few years ago.. And I just checked current Andrews CD rates and I could not believe it. 7 year cd rate is 0.3%. Can that be right?
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Yep, I just confirmed it. The Andrews 7 year CD rate is 0.3% per year. Yes, Zero point three percent. Don't know what their game is, but I suppose I don't have to know, lol. Won't be stashing any cabbage there.
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01-22-2022, 10:40 PM
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#40
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 16,973
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Quote:
Originally Posted by John Galt III
Yep, I just confirmed it. The Andrews 7 year CD rate is 0.3% per year. Yes, Zero point three percent. Don't know what their game is, but I suppose I don't have to know, lol. Won't be stashing any cabbage there.
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They will catch a lot of old folks auto-renewing their CD's and not paying attention.
I've seen this before at other banks.
__________________
Fortune favors the prepared mind. ... Louis Pasteur
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