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

[explanade]

Quote:

Originally Posted by Another Reader Per Deposit Accounts, Department of Commerce FCU has some attractive rates. Membership is now open to all per Deposit Accounts. 12-23 month CD's at 2.12 percent. 48 month at 2.99.

Has anyone opened an account with this institution for these rates?

Or have had accounts with them in the past?

[Graybeard]

Quote:

Originally Posted by explanade Is there a limit on how much in Treasuries you could buy at a time? Do those Treasury Direct accounts just give you the interest at maturity and you can get the principal and interest transferred back to a bank account by ACH?

IIRC it is $5M.

ETA - that might be a Vanguard restriction.

[audreyh1]

Quote:

Originally Posted by aja8888 I posted this for the CD buyers.

CD buyers become treasury buyers under these circumstances!

[explanade]

Are treasuries tax free?

Fed tax free but not state tax free?

[audreyh1]

Quote:

Originally Posted by explanade Do those Treasury Direct accounts just give you the interest at maturity and you can get the principal and interest transferred back to a bank account by ACH?

For the bills (short term) you buy a $1000 treasury for something less than $1000, then get $1000 back at maturity. The difference is your interest earned. These are “zero coupon”.

Treasury Direct would pull something less than $1000 from your bank account, then return $1000 when the bill matures.

Interest from treasuries is subject to federal income tax.

[explanade]

Quote:

Originally Posted by Graybeard IIRC it is $5M. ETA - that might be a Vanguard restriction.

Does VG let you buy and hold treasuries in VG accounts?

[jazz4cash]

Quote:

Originally Posted by explanade Does VG let you buy and hold treasuries in VG accounts?

Yes.
Edit: Yes for Treasury bills, notes, and bonds. No for iBonds.

[Out-to-Lunch]

Quote:

Originally Posted by explanade Are treasuries tax free? Fed tax free but not state tax free?

The opposite. Subject to Fed tax, but free of state tax.

[almost there]

Is there any advantage to Treasuries? Same 1 yr brokered CD is at 2.1%
Thanks

[Jenna]

Capital One online has a 6 month for 1.75% , no minimim

[Earl E Retyre]

I just canceled all my Ally No Penalty CDs at .55% and reopened them at .70%. Takes a second.

[John Galt III]

Quote:

Originally Posted by Linney Is this link more helpful? It shows the rates, day by day: https://home.treasury.gov/resource-c...e_month=202205

Yes, thanks, Linney.

[Eucerin]

Quote:

Originally Posted by audreyh1 For the bills (short term) you buy a $1000 treasury for something less than $1000, then get $1000 back at maturity. The difference is your interest earned. These are “zero coupon”.

I am trying to understand above statement. For example, I bought $1,000 1month treasury bill at rate 0.50%, the price was $985. At end of month, I will get $1,000 back plus the interest which was 0.5%, am I right? in the end, the total amount should be slightly above $1,000, it could be $1,010 (example only) - principle+interest

[pb4uski]

Quote:

Originally Posted by almost there Is there any advantage to Treasuries? Same 1 yr brokered CD is at 2.1% Thanks

IMO UST and brokered CDs are functionally equivalent.... both are full faith and credit/credit risk-free and have interest rate risk unless held to maturity.

[pb4uski]

Quote:

Originally Posted by Eucerin I am trying to understand above statement. For example, I bought $1,000 1month treasury bill at rate 0.50%, the price was $985. At end of month, I will get $1,000 back plus the interest which was 0.5%, am I right? in the end, the total amount should be slightly above $1,000, it could be $1,010 (example only) - principle+interest

Do you mean 1-year treasury bill rather than 1-month treasury bill? If you buy a $1,000 t-bill for $985 then you'll get 1.5% interest ($15/$985). 1.5% for a year would be good, 1.5% for a month would be crazy good so I'm guessing that you bought a 1-year t-bill.

With a t-bill you do not get interest... only face value.

Quote:

Unlike Treasury bonds and notes, T-bills do not pay periodic interest payments to investors. Instead, Treasury bills are auctioned off to investors at a discount to their face value. The investor's return is the difference between the face value and the discount price paid at purchase.

[lawman]

Quote:

Originally Posted by pb4uski . With a t-bill you do not get interest... only face value.

So when I go to Schwab's bond offering page and click on "Treasuries" I assume those are bonds..It that correct? Some of those are selling above $100.00 and some less than $100.00

I assume zero treasuries are t-bills .correct?

[pb4uski]

You are way overthinking it. Just focus on remaining term and yield to maturity.

[Eucerin]

Quote:

Originally Posted by pb4uski Do you mean 1-year treasury bill rather than 1-month treasury bill? If you buy a $1,000 t-bill for $985 then you'll get 1.5% interest ($15/$985). 1.5% for a year would be good, 1.5% for a month would be crazy good so I'm guessing that you bought a 1-year t-bill. With a t-bill you do not get interest... only face value.

I understand now. Thank You!

[audreyh1]

Quote:

Originally Posted by Eucerin I am trying to understand above statement. For example, I bought $1,000 1month treasury bill at rate 0.50%, the price was $985. At end of month, I will get $1,000 back plus the interest which was 0.5%, am I right? in the end, the total amount should be slightly above $1,000, it could be $1,010 (example only) - principle+interest

No, you get $1000 back. The difference between $985 and $1000 is your interest payment.

[4legsgood]

CIT Bank has a new savings account type, 'Savings Connect', .9 APY. Unfortunately they didn't bump the old savings account rate so you have to open a new one (and also checking account) but easy to do all online. They did bump existing money market accounts to .7 APY.