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Old 03-23-2022, 02:52 PM   #81
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I have a Capital One money market account, paying 0.40%. While I've never had any issues with the account, their rates aren't giving me much reason to stick with them right now.

I'm eligible for Navy Federal Credit Union, and they have slightly better rates (0.45%) as well as a local physical branch.
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Old 03-23-2022, 05:41 PM   #82
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Bingo. I'm with Vanguard, not Fidelity, but I just bought my first CD from them this week. 18 months at 1.6% compared to Ally offering 1.1% for the same term. We have 2 CDs still with Ally but when they mature later this year, I will move them over.

From what I've seen, US Treasuries are generally currently higher yielding than CDs until you get about 5 years out and then the advantage flips to CDs so a US Treasury maturing 9/30/23 at 1.92% would be better than an 18-month CD for 1.6%.
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Old 03-23-2022, 05:45 PM   #83
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From what I've seen, US Treasuries are generally currently higher yielding than CDs until you get about 5 years out and then the advantage flips to CDs so a US Treasury maturing 9/30/23 at 1.92% would be better than an 18-month CD for 1.6%.
.
Good to know. We don't own any Treasuries and I've never bought them. I'll need to read up on the process. At least in this case, I already had some cash sitting in our Vanguard account from year-end 2021 income that I hadn't done anything with yet so it was simple to just buy the CD right there.
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Old 03-23-2022, 05:46 PM   #84
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Ally Bank savings and CD rates are lagging. 0.5% savings and their 12-month "High Yield" CD is 0.75%. From what I've seen in the past Ally was always very competitive. I've got the bulk of my fixed income allocation at Ally spread between savings and CD's but I think at this point I will start migrating to FIDO CD Ladders.
I just rollover to the Ally no penalty CDs as a place holder and wait for better rates before committing to 12-15 month CDs.
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Old 03-23-2022, 05:53 PM   #85
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I just rollover to the Ally no penalty CDs as a place holder and wait for better rates before committing to 12-15 month CDs.
Yep, that is where I have my money as well. I'm just noticing that Ally seems to be lagging in adjusting interest rates. It could be that they've changed their philosophy about how aggressive they will be on the returns they offer. They used to be in the top 2 or 3 of CD and Savings returns. Not right now. I'm not going to move everything away from them, but I will liquidate a couple of those no-pentalty CD's and look for greener pasture for the next 18 months or so. If Ally raises their rates again, I'll be back.
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Old 03-23-2022, 05:55 PM   #86
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I just rollover to the Ally no penalty CDs as a place holder and wait for better rates before committing to 12-15 month CDs.
What does that accomplish? I just looked and their no penalty CD is paying 0.5%, same as their savings account. Why not just leave it in savings?
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Old 03-23-2022, 05:55 PM   #87
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For a 6 month time frame, is there anything better than online savings right now?

Sitting on a lot of cash for a house purchase...
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Old 03-23-2022, 05:57 PM   #88
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For a 6 month time frame, is there anything better than online savings right now?
Sure. A 6-month CD. I just looked at Vanguard's brokered CDs and the top 6-month one is paying 0.85%.
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Old 03-23-2022, 07:40 PM   #89
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Good to know. We don't own any Treasuries and I've never bought them. I'll need to read up on the process. At least in this case, I already had some cash sitting in our Vanguard account from year-end 2021 income that I hadn't done anything with yet so it was simple to just buy the CD right there.
You can buy Treasuries from Vanguard as well... it's the same process as buying brokered CDs... and both are full faith and credit... they are effectively one and the same.
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Old 03-23-2022, 07:50 PM   #90
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You can buy Treasuries from Vanguard as well... it's the same process as buying brokered CDs... and both are full faith and credit... they are effectively one and the same.
Duh. I should have known that. Thanks.
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Old 03-23-2022, 09:26 PM   #91
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I have a Capital One money market account, paying 0.40%. While I've never had any issues with the account, their rates aren't giving me much reason to stick with them right now.

I'm eligible for Navy Federal Credit Union, and they have slightly better rates (0.45%) as well as a local physical branch.
FYI, viobank is paying 0.66% on their MM. I have had vio for a couple years now and happy with them. They seem to try and have rates that are above average.
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Old 03-23-2022, 10:10 PM   #92
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Yep, that is where I have my money as well. I'm just noticing that Ally seems to be lagging in adjusting interest rates. It could be that they've changed their philosophy about how aggressive they will be on the returns they offer. They used to be in the top 2 or 3 of CD and Savings returns. Not right now. I'm not going to move everything away from them, but I will liquidate a couple of those no-pentalty CD's and look for greener pasture for the next 18 months or so. If Ally raises their rates again, I'll be back.
When Ally does raise their rates, can I exit the no penalty CD and move it into another no penalty CD that pays a higher rate? I have 5 days left to exit the CD before it rolls over to .55%
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Old 03-23-2022, 10:41 PM   #93
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I just rollover to the Ally no penalty CDs as a place holder and wait for better rates before committing to 12-15 month CDs.
But.... I just purchased a one year t-bill for 1.6%, over three times what Ally is offering on the no penalty CD. Will Ally offer a big enough rate increase soon enough to negate the loss of earnings while you wait? This is something to consider. Time will tell.
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Old 03-23-2022, 11:24 PM   #94
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What does that accomplish? I just looked and their no penalty CD is paying 0.5%, same as their savings account. Why not just leave it in savings?

I thought the same, so changed all my CD's at Ally to auto deposit back to the savings account.

No sense in locking up money at this time.
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Old 03-24-2022, 07:41 AM   #95
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When Ally does raise their rates, can I exit the no penalty CD and move it into another no penalty CD that pays a higher rate? I have 5 days left to exit the CD before it rolls over to .55%


Thatís an interesting question. I assume you could just move to a new higher rate. If you are Ally and you are looking at huge deposits in the no penalty accounts it might discourage you from raising rates.
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Old 03-24-2022, 08:15 AM   #96
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I have a Capital One money market account, paying 0.40%. While I've never had any issues with the account, their rates aren't giving me much reason to stick with them right now.

I'm eligible for Navy Federal Credit Union, and they have slightly better rates (0.45%) as well as a local physical branch.
T-Mobile Money (FDIC insured) remains at 1.00%. Might make it a bit more worth the trouble.
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Old 03-24-2022, 09:25 AM   #97
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T-Mobile Money (FDIC insured) remains at 1.00%. Might make it a big more worth the trouble.
As I read this, I don't have to be a T-Mobile customer to get the 1% interest but if I am, I can also open a checking account and get 4% Interest on the first $3k with qualifying transactions and other perks. I'm not a T-Mobile customer and have no plans to be anytime soon.
I'm not interested in a checking account, just a place to park money for now. Would this account work for me?
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Old 03-24-2022, 09:43 AM   #98
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As I read this, I don't have to be a T-Mobile customer to get the 1% interest but if I am, I can also open a checking account and get 4% Interest on the first $3k with qualifying transactions and other perks. I'm not a T-Mobile customer and have no plans to be anytime soon.
I'm not interested in a checking account, just a place to park money for now. Would this account work for me?
It has for me.
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Old 03-24-2022, 09:58 AM   #99
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It has for me.
Great, I think i'll sign up. I took a quick look to see if they offered any referral bonuses but not that I can see. If they're giving you anything for a new referral send me a code.
Thanks
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Old 03-24-2022, 10:18 AM   #100
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Great, I think i'll sign up. I took a quick look to see if they offered any referral bonuses but not that I can see. If they're giving you anything for a new referral send me a code.
Thanks
Not to my knowledge but thanks for that!
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