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

[Henry Lili]

Marcus and Synchrony are both behind the curve...

Marcus 1.5% as of yesterday 7/29

 

[pb4uski]

... The Fed Funds Rate that is being raised is between the FED and member banks.

I realize that, but historically the Fed funds rate has sort of been the baseline for rates deeper in the curve and when the Fed funds rate changes other rates on the curve changed correspondingly unless the curve flattened or steepened. Not 1:1 but in a broad brush way.

 

[aja8888]

I realize that, but historically the Fed funds rate has sort of been the baseline for rates deeper in the curve and when the Fed funds rate changes other rates on the curve changed correspondingly unless the curve flattened or steepened. Not 1:1 but in a broad brush way.

Like you said, it's a mess now and with all the liquidity in the system and moving parts, who knows what's going on. And, rate changes are not always immediate.

 

[tulak]

Thanks. That makes me feel better because my recollection also was that they were not FDIC insured.

They acquired Radius Bank in February 2021 and rebranded banking to LendingClub. I’m guessing that’s when they became FDIC insured?

I’m a bit tired of dealing with weird banks for a little more yield (bye, bye T-Mobile Bank), so I’m hesitant to go with them even though they’re at 2%.

 

[explanade]

Fidelity currently shows CDs from what I assume are small regional banks, names that I don't recognize.

But there are a few offerings from Ally, Wells Fargo, Discover, Fidelity, Morgan Stanley.

All have CP, SFP, FDIC and SO.

These are all under new issues and have maturities from 1 month to 10 years. The earliest maturities are in early September.

The 3 month rates are all over 2%, the 6 month rates are 2.5 to 2.6% and the 1 year rates are around 3%.

These seem better than the 5-year rates around 3.75% that people have been citing, assuming rates will continue to go up for at least the rest of the year?

 

[Graybeard]

Yesterday the Vanguard Federal Money Market Fund VMFXX (settlement fund) 7 day SEC yield increased to 1.84%, IIRC it was 1.60% on Thursday.

 

[Another Reader]

Yesterday the Vanguard Federal Money Market Fund VMFXX (settlement fund) 7 day SEC yield increased to 1.84%, IIRC it was 1.60% on Thursday.

It's hard to beat Vanguard for low cost money market funds. Fidelity and Schwab charge much higher expenses and it shows in the net yields.

 

[John Galt III]

Anyone have an idea where the 5 year rates will top out at? I'm hoping more than 3.5%.

I found this with a google search: *** Ken Tumin, founder and editor of DepositAccounts, expects CD rates to keep climbing this year and next. If the Fed carries three more rate hikes this year, for a total of seven, and three or four in 2023, Tumin predicts the highest rates for five-year CDs will hit a range of 4.00% to 4.50% by the end of next year. *** from Forbes.com recently.

 

[Car-Guy]

I found this with a google search: *** Ken Tumin, founder and editor of DepositAccounts, expects CD rates to keep climbing this year and next. If the Fed carries three more rate hikes this year, for a total of seven, and three or four in 2023, Tumin predicts the highest rates for five-year CDs will hit a range of 4.00% to 4.50% by the end of next year. *** from Forbes.com recently.

I'll be very surprised if they don't go over 4% this year. Schwab is already offering 4 yr brokered CD's for 3.5% and that's not considering the Fed's rather large rate increase this past week. I wouldn't be surprise to see 4% in the next ~30 days for 4 and 5 yr CD's. That's my trigger point to start laddering CD's again.

 

[NomDeER]

Yesterday the Vanguard Federal Money Market Fund VMFXX (settlement fund) 7 day SEC yield increased to 1.84%, IIRC it was 1.60% on Thursday.

Yes. Earlier in the week it was at 1.53%. I think my money in the settlement fund will end up doing better than my short-term T Bills.

I found this with a google search: *** Ken Tumin, founder and editor of DepositAccounts, expects CD rates to keep climbing this year and next. If the Fed carries three more rate hikes this year, for a total of seven, and three or four in 2023, Tumin predicts the highest rates for five-year CDs will hit a range of 4.00% to 4.50% by the end of next year. *** from Forbes.com recently.

I really don't know much CDs and bonds, so I'm curious as to why people think that 5 year CDs will be so high next year when the longer term Treasury yields have decreased recently and many expect the Fed to start lowering interest rates next year.

 

[COcheesehead]

Yes. Earlier in the week it was at 1.53%. I think my money in the settlement fund will end up doing better than my short-term T Bills.



I really don't know much CDs and bonds, so I'm curious as to why people think that 5 year CDs will be so high next year when the longer term Treasury yields have decreased recently and many expect the Fed to start lowering interest rates next year.

The long end of the curve has dropped - recession fears. The short end has risen - in reaction to the Fed. Creating an inversion.

 

[Cayman]

Navy FCU - 33 month CD available starting today with 3.3% APY. $100k max. You can open it with $1k and additions up to the $100k maximum are allowed at any time. Look under "Certificate Special Offers"

CAR GUY - Looks like you're spot on -"I wouldn't be surprise to see 4% in the next ~30 days for 4 and 5 yr CD's."

 

[REWahoo]

Navy FCU - 33 month CD available starting today with 3.3% APY. $100k max. You can open it with $1k and additions up to the $100k maximum are allowed at any time. Look under "Certificate Special Offers"

Thanks for this. I opened one with them last week when the "Special Offer" was less special - only 2.6%. I sent them a message asking what I need to do to get the higher rate. Hopefully they won't make me jump through any hoops to make it happen.

 

[Cayman]

Thanks for this. I opened one with them last week when the "Special Offer" was less special - only 2.6%. I sent them a message asking what I need to do to get the higher rate. Hopefully they won't make me jump through any hoops to make it happen.

Good to hear. That'll be a nice bump.

 

[aja8888]

Just Bought at Schwab (new issues - FDIC insured:

Settle date: 08/11/2022 (9 month CD)
Action: Bought
Quantity: 4,000 - ALL that was available!
Symbol: AXOS BANK 3% CD FDIC INS DUE 05/11/23 US
Unit Price: $100.00

Settle Date: 08/10/2022 (18 Month CD)
Action: Bought
Quantity: 15,000
Symbol: UBS BANK USA 3.2% CD FDIC INS DUE 02/12/24US
Unit Price: $100.00

Both non callable and both distribute monthly.

 

[jazz4cash]

Navy FCU - 33 month CD available starting today with 3.3% APY. $100k max. You can open it with $1k and additions up to the $100k maximum are allowed at any time. Look under "Certificate Special Offers"

CAR GUY - Looks like you're spot on -"I wouldn't be surprise to see 4% in the next ~30 days for 4 and 5 yr CD's."

Thank you for this!! I don't know how I missed it previously. I tried to open with IRA funds but the website would not let me transfer from my IRA share account. The footnote for this certificate special does say IRA funds are eligible. I sent a message requesting them to transfer the funds. It's perfect to dump funds from another certificate that matures in Jan.

 

[Spock]

sorry for dup-ing this post with another thread, but DANG!
Fido is "sold out" of all non-callable, new issue CD's beyond 4 years.
There are only 32 non-callable secondary CD issues at 5+ years maturity and I think I would have to buy 100% of the available market to cover the 401K stable value $ I was planning to move.
So much for waiting for the next rate hike.

 

[GenXguy]

sorry for dup-ing this post with another thread, but DANG!
Fido is "sold out" of all non-callable, new issue CD's beyond 4 years.
There are only 32 non-callable secondary CD issues at 5+ years maturity and I think I would have to buy 100% of the available market to cover the 401K stable value $ I was planning to move.
So much for waiting for the next rate hike.

I've been using Vanguard for most of my investments and was going to open a Fido or Schwab account, and I was thinking of getting some new issue CDs. How's things up to 3 years? Would Schwab have a better selection?

 

[Dash man]

I've been using Vanguard for most of my investments and was going to open a Fido or Schwab account, and I was thinking of getting some new issue CDs. How's things up to 3 years? Would Schwab have a better selection?

I just bought a ladder of CDs at Schwab this morning. Here are my purchases:

 

[dvalley]

I ended up building a 5yr CD ladder too using Fidelity's CD ladder builder (cool tool that Vanguard should offer). The CDs include 3% to 3.75% non-callable CDs. If the rates go up I'll buy a few of those too; I still have some cash in lower earning accounts. Plus when the laddered CDs start maturing next year I'll roll the funds into whatever is the highest paying fixed income vehicle at that time.

I-Bonds are great but they really gotta make the online limits higher, like 100k per yr

 

[Freedom56]

It's hard to beat Vanguard for low cost money market funds. Fidelity and Schwab charge much higher expenses and it shows in the net yields.

It's even harder to beat the US treasury as 30 day notes are now 2.22%. After the next rate hike it should be up near 3%.

https://ycharts.com/indicators/1_mo..., compared to 2.20,long term average of 1.17%.

 

[Chuckanut]

CAR GUY - Looks like you're spot on -"I wouldn't be surprise to see 4% in the next ~30 days for 4 and 5 yr CD's."

I hope you're right. This inflation is making 3 percenters still look rather meager.
I am going to keep some powder dry. If they don't get inflation under control, I can see 5% for a 3 year CD. Still a loser in real terms, but not as bad as in the 3% area.

 

[calmloki]

Back a few years ago I missed a 3.5% CD - it was there on a Friday and by the time i bought on Monday it was 3%. Irked me.

Bearing in mind GTE's add-on CD and how good it has made me feel I'm going to stick $1000 in the Navy add-on , just in case rates don't keep going up.

 

[Dash man]

Back a few years ago I missed a 3.5% CD - it was there on a Friday and by the time i bought on Monday it was 3%. Irked me.

Bearing in mind GTE's add-on CD and how good it has made me feel I'm going to stick $1000 in the Navy add-on , just in case rates don't keep going up.

I’m putting $1,000 into the NFCU CD too. No harm in doing it.

 

[Accidental Retiree]

Back a few years ago I missed a 3.5% CD - it was there on a Friday and by the time i bought on Monday it was 3%. Irked me.

Bearing in mind GTE's add-on CD and how good it has made me feel I'm going to stick $1000 in the Navy add-on , just in case rates don't keep going up.

That’s what we’re doing.