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Old 01-23-2022, 12:32 AM   #41
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0.3%. I think I would remember that interest rate for a long time and it would make me wonder if I wanted to do any business with that CU at all. Aren't credit unions supposed to be there for the good of the members? How is 0.3% for 7 years any good for savers in this inflationary environment? One year of inflation would wipe out 7 years of 0.3% interest compounded in real terms. And then taxes.
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Old 02-02-2022, 10:17 AM   #42
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Discover online saving just increased their interest percentage from 0.4% to 0.5%.


(Quiet, polite, "golf clap" heard among the masses.)
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Old 02-02-2022, 11:52 AM   #43
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0.3%. I think I would remember that interest rate for a long time and it would make me wonder if I wanted to do any business with that CU at all. Aren't credit unions supposed to be there for the good of the members? How is 0.3% for 7 years any good for savers in this inflationary environment? One year of inflation would wipe out 7 years of 0.3% interest compounded in real terms. And then taxes.
I would offer a different view.
In this inflationary environment how do we encourage savers Not to lend us money for 7 years? Lower the rate so we aren't paying out higher interest than we can earn through the Fed. That's one view.
----------------- or ------------------
For the good of the members doesn't mean you pay members more than you can afford. Rates this low means they are dealing with significant loan losses, or inability to make loans to qualified borrowers. CUs make loans to provide above market (hopefully) interest on savings to members. If they don't have a broad enough book of loans the Feds will caution them to lower their interest rates paid on savings.
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Old 02-03-2022, 01:53 PM   #44
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PenFed just sent me "through the roof" (haha) certificate rates:

1% 15 months
1.15% 18 months
1.25% 2 years
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Old 02-03-2022, 03:30 PM   #45
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Aren't credit unions supposed to be there for the good of the members? How is 0.3% for 7 years any good for savers in this inflationary environment?


Well, my CU would brag that “our rates are 10X compared to the big banks”… and it’s true. B of A is at 0.03% for 7 yrs for $10k.
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Old 02-03-2022, 04:27 PM   #46
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Discover online saving just increased their interest percentage from 0.4% to 0.5%.


(Quiet, polite, "golf clap" heard among the masses.)
So now they are equal to Ally.
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Old 02-05-2022, 09:51 PM   #47
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Poppy Bank

- 6 month CD 0.4%
- 9 month CD 0.75%
- 12 month CD 1.0%

https://www.poppy.bank/personal
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Old 02-15-2022, 08:28 PM   #48
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Hi All,

The Marcus by Goldman Sachs $100 bonus for $10k deposit ends tomorrow.

With AARP the account yields 0.60%.

[mod edit]

Cheers,

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Old 02-16-2022, 07:46 AM   #49
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Fidelity has 5 yr brokered CD from Sallie Mae bank @ 2.2%. I think that’s better than anything in depositaccounts.com
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Old 02-16-2022, 08:30 AM   #50
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^^^ and the 3-year CD is 1.9%
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Old 02-16-2022, 08:48 AM   #51
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So now they are equal to Ally.
Yes. And both are half the TMobile Money rate.
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Old 02-18-2022, 10:51 AM   #52
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Here are current PENFED CD rates.
TERMAPY*
6 Month0.45%**
12 Month0.85%
15 Month1.00%
18 Month1.15%
2 Year1.25%
3 Year1.00%
4 Year0.95%
5 Year1.30%
7 Year1.50%

For argument's sake, if high yield savings rate is .50%, then it makes little sense to invest in any CDs like this, whoever is offering them.
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Old 02-18-2022, 02:55 PM   #53
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Here are current PENFED CD rates.

TERMAPY*
6 Month0.45%**
12 Month0.85%
15 Month1.00%
18 Month1.15%
2 Year1.25%
3 Year1.00%
4 Year0.95%
5 Year1.30%
7 Year1.50%



For argument's sake, if high yield savings rate is .50%, then it makes little sense to invest in any CDs like this, whoever is offering them.


I guess I’d rather earn .85-1.25 on funds not needed for the corresponding terms. I’d use the Hi yield savings as well to meet immediate and emergency needs. I expect rates will be headed up so I wouldn’t go out very far.
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Old 02-18-2022, 06:19 PM   #54
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Here are current PENFED CD rates.
TERMAPY*
6 Month0.45%**
12 Month0.85%
15 Month1.00%
18 Month1.15%
2 Year1.25%
3 Year1.00%
4 Year0.95%
5 Year1.30%
7 Year1.50%

For argument's sake, if high yield savings rate is .50%, then it makes little sense to invest in any CDs like this, whoever is offering them.
The 2 year T-bill is at 1.45%. That seems a lot more interesting than these rates.

But I plan to sit tight with more rate hikes teed up.
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Old 02-18-2022, 10:06 PM   #55
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Yes, the T-bills are just about to look interesting again. It might be like last go around when T-bills were ahead of bank CDs for quite a while.
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Old 02-19-2022, 06:32 AM   #56
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High-interest savings vs. 1 year CD.
Amount0.50% hi-int0.85% 1-YR CDadd'l $$$
10,000$50$85$35
50,000$250$425$175
100,000$500$850$350

I'll play some other game this year.
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Old 02-19-2022, 06:43 AM   #57
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High-interest savings vs. 1 year CD.
Amount0.50% hi-int0.85% 1-YR CDadd'l $$$
10,000$50$85$35
50,000$250$425$175
100,000$500$850$350

I'll play some other game this year.
1 year UST is 1.15%, so better than 0.85% for a 1-year brokered CD... same credit and interest rate risk... so a $65 advantage over the online savings account on $10,000.
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Old 02-19-2022, 10:16 AM   #58
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I guess this thread will stay a bit more active with rates on the rise. MYGA rates too. The 5 yr A rated Americo MYGA just increased from 2.7 to 3.05. 5 yrs might be too long to lock in a large sum, though.
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Old 02-19-2022, 01:26 PM   #59
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1 year UST is 1.15%, so better than 0.85% for a 1-year brokered CD... same credit and interest rate risk... so a $65 advantage over the online savings account on $10,000.
Stick with 1.00.% savings account. no interest rate risk or.credit risk.
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Old 02-19-2022, 10:04 PM   #60
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1 year UST is 1.15%, so better than 0.85% for a 1-year brokered CD... same credit and interest rate risk... so a $65 advantage over the online savings account on $10,000.
I like that suggestion. Where are you buying these? I'm surprised to see very high minimums on 1yr UST's at Fidelity. 1yr really is a sweet spot vs. CD's
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