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

[Dtail]

When I select a CD and look at the details, I see early withdrawal in the menu bar near the top.

If the CD is less than 10 days old you probably can’t do anything.

+1 that is how I did it.

 

[MJ]

I have a bunch of 5 year CD's earning average 3.4% closing early 2024. Hoping I'll be able to moved them to CDs earning 4+%. Keeping my fingers crossed. Of course, it may mean that inflation is still with us increasing our normal expenses.

 

[DawgMan]

Question for the group... if you are laddering bonds with a portion slated for treasuries and/or CDs would you use them interchangeably even if the purchase was over the FDIC ($250K) limit? In other words, how much of a premium would a CD have to yield to in theory make you bite knowing technically anything over the $250K was "at risk"? Eg. I noticed at Schwab a 10 yr CD is paying 3.7 vs a 10 yr treasury at 2.94.

 

[Golden sunsets]

Question for the group... if you are laddering bonds with a portion slated for treasuries and/or CDs would you use them interchangeably even if the purchase was over the FDIC ($250K) limit? In other words, how much of a premium would a CD have to yield to in theory make you bite knowing technically anything over the $250K was "at risk"? Eg. I noticed at Schwab a 10 yr CD is paying 3.7 vs a 10 yr treasury at 2.94.

Do you have a spouse? If so the insurance would be $500k.

Sent from my SM-T510 using Early Retirement Forum mobile app

 

[DawgMan]

Do you have a spouse? If so the insurance would be $500k.

Sent from my SM-T510 using Early Retirement Forum mobile app

Yes, but lets assume it exceeds the $500K. I'm trying to understand the "real" risk, if any, associated with CDs. If the plan is to hold to maturity, is the default risk on CDs realistic? I have never owned a CD so do not recall what the CD defaults looked like during the bank failures back in 2008. Seems like the Fed shored up most of the banks. My first thought is the risk is minimal so go for the higher yield all things being equal.

Also, as the bond laddering is new to me (previously used ETFs), if you were laddering multiple 7 figures, how many different bonds/CDs/Treasuries should one have to be reasonably diversified knowing the the plan is generally to hold to maturity?

 

[Golden sunsets]

Yes, but lets assume it exceeds the $500K. I'm trying to understand the "real" risk, if any, associated with CDs. If the plan is to hold to maturity, is the default risk on CDs realistic? I have never owned a CD so do not recall what the CD defaults looked like during the bank failures back in 2008. Seems like the Fed shored up most of the banks. My first thought is the risk is minimal so go for the higher yield all things being equal.



Also, as the bond laddering is new to me (previously used ETFs), if you were laddering multiple 7 figures, how many different bonds/CDs/Treasuries should one have to be reasonably diversified knowing the the plan is generally to hold to maturity?

It is too easy to just title the accounts so that you have FDIC insurance to cover your total. Ex: One in your name alone=250,000. One in your wife's name alone=$250,000. One in yours and your wife's name jointly for $500,000. So $1,000,000 in coverage. Then you could do one in your name with a POD in the name of one of your children. There's another $250,000. And so on.

I wouldn't take the risk of exceeding the coverage. There's no reason to.

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[almost there]

It is too easy to just title the accounts so that you have FDIC insurance to cover your total. Ex: One in your name alone=250,000. One in your wife's name alone=$250,000. One in yours and your wife's name jointly for $500,000. So $1,000,000 in coverage. Then you could do one in your name with a POD in the name of one of your children. There's another $250,000. And so on.

I wouldn't take the risk of exceeding the coverage. There's no reason to.

Sent from my SM-T510 using Early Retirement Forum mobile app

Another good thing about brokered CD's, the FDIC Ins. is per institution. Not Charles Schwab, in this example. And they have dozens of institutions offering CD's in the same time frame. So, its not like getting one at a bank or Credit union. Its like dozens of them... Under one roof.

 

[frank]

are these brokered cd/s being mentioned hear all callable?

 

[jazz4cash]

Question for the group... if you are laddering bonds with a portion slated for treasuries and/or CDs would you use them interchangeably even if the purchase was over the FDIC ($250K) limit? In other words, how much of a premium would a CD have to yield to in theory make you bite knowing technically anything over the $250K was "at risk"? Eg. I noticed at Schwab a 10 yr CD is paying 3.7 vs a 10 yr treasury at 2.94.

I think its pretty easy to stay within FDIC limits so that’s what I would do. In the past we’ve seen some really unique high CD rates from some credit unions but I think brokered CDs are available from multiple sources.
Fidelity shows the same rate on a 10 yr CD and tax-free AA munis are in that range also. I do use bonds, treasuries and CDs somewhat interchangeably to fill ladder rungs.

 

[almost there]

are these brokered cd/s being mentioned hear all callable?

The majority are not. A few are. But its easy to see. No mystery at all. I never went with a callable CD. Not interested.

 

[John Galt III]

I have a bunch of 5 year CD's earning average 3.4% closing early 2024. Hoping I'll be able to moved them to CDs earning 4+%. Keeping my fingers crossed. Of course, it may mean that inflation is still with us increasing our normal expenses.

Similar boat here, MJ. I went in big in 2019, in 3.5% PenFed CDs, and have them maturing in 2024. I also have a chunk of cash in 0.7% savings, and am waiting for rates to go to up from here, and will invest it periodically in CDs.

 

[target2019]

Ally finally went to 0.75%, better late than never.

Discover recently went to 0.70%. In the past they were running with Ally, always a little behind in the change. But this time is different...

 

[Another Reader]

I use depositaccounts.com to track rates. Barclays is at 0.9%, Synchrony and Marcus are both at 0.85%. I get an old folks sweetener of 0.1 at Marcus, so 0.95%. Trialing a small deposit at Bask Bank for 1.25 percent. Website is kind of clunky, so we will see if it's worth the trouble.

They track CD rates as well. I started a couple of small ones at Live Oak Bank, but rates are moving too fast now to justify more CD's.

 

[aza455]

I use depositaccounts.com to track rates. Barclays is at 0.9%, Synchrony and Marcus are both at 0.85%. I get an old folks sweetener of 0.1 at Marcus, so 0.95%. Trialing a small deposit at Bask Bank for 1.25 percent. Website is kind of clunky, so we will see if it's worth the trouble.

They track CD rates as well. I started a couple of small ones at Live Oak Bank, but rates are moving too fast now to justify more CD's.

Can you give us a link to the seniors offer for 0.1% extra rate at Marcus?

 

[Another Reader]

Can you give us a link to the seniors offer for 0.1% extra rate at Marcus?

It isn't offered on the website. They e-mailed me the offer, so it's targeted. I do keep low five figures there and have been a long time customer.

 

[Happyras]

Here is the offer link for Marcus;
https://www.marcus.com/us/en/disclosure/savings-rate-bonus-offer-details

Also, PM me and I will send you a link to get 0.5% more for 3 months.

 

[Happyras]

Also, PM me and I will send you a link to get 0.5% more for 3 months. This is a referral bonus and both the sender and the user of the link get 3 months added at the extra 0.5%. This offer is expiring on 6/30, so it is available to anyone until then.

 

[Happyras]

It isn't offered on the website. They e-mailed me the offer, so it's targeted. I do keep low five figures there and have been a long time customer.

You should be able to get this offer, but you need to have an AARP membership. It actually is applied for more than one year, so the 1st year $10 you pay to join AARP is easily covered in the interest earned. We are getting 1.45% now on our Marcus MM, fully liquid......

 

[audreyh1]

Question for the group... if you are laddering bonds with a portion slated for treasuries and/or CDs would you use them interchangeably even if the purchase was over the FDIC ($250K) limit? In other words, how much of a premium would a CD have to yield to in theory make you bite knowing technically anything over the $250K was "at risk"? Eg. I noticed at Schwab a 10 yr CD is paying 3.7 vs a 10 yr treasury at 2.94.

I always title our CDs joint which gives us $500K per banking institution.

 

[Dash man]

Question for the group... if you are laddering bonds with a portion slated for treasuries and/or CDs would you use them interchangeably even if the purchase was over the FDIC ($250K) limit? In other words, how much of a premium would a CD have to yield to in theory make you bite knowing technically anything over the $250K was "at risk"? Eg. I noticed at Schwab a 10 yr CD is paying 3.7 vs a 10 yr treasury at 2.94.

This might help you understand FDIC Insurance limits. From FDIC.gov

FDIC Deposit Insurance Coverage Limits by Account Ownership Category:

Single Accounts (Owned by One Person)$250,000 per owner

Joint Accounts (Owned by Two or More Persons)$250,000 per co-owner

Certain Retirement Accounts (Includes IRAs)$250,000 per owner

Revocable Trust Accounts$250,000 per owner per unique beneficiary

Corporation, Partnership and Unincorporated Association Accounts$250,000 per corporation, partnership or unincorporated association

Irrevocable Trust Accounts$250,000 for the noncontingent interest of each unique beneficiary

Employee Benefit Plan Accounts$250,000 for the noncontingent interest of each plan participant

Government Accounts$250,000 per official custodian (more coverage available subject to specific conditions)

 

[almost there]

Navy Fed finally budged today. Just a heads up. 2.8% on a 5 yr.
Tons of cash sitting at Charles Schwab in 1 month 1% CD's.
... waiting for 3.5%-4%.
So close....

 

[jim584672]

PenFed 3% 7 year certificates are out now.

 

[madatrub]

3 year notes coming in at 2.875 thru Treasury Direct

 

[topsider]

NFCU Increases Long Term CD Rates

NFCU bumped up their long term CD rates...3.15% for 7 Yr 100K.

 

[Sue J]

DiscoverBank savings is now at 0.80%.