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

[Car-Guy]

Not sure if anyone posted this yet but Ally bank no penalty CD is now at 2%

Maybe their penalty is the low rate?

 

[Dash man]

Synchrony is now 1.8% for their savings interest rate.

 

[kongmen]

Synchrony is now 1.8% for their savings interest rate.

Nice! Could have done a little better but I'm happy they are responding.

 

[Drake3287]

Not sure if anyone posted this yet but Ally bank no penalty CD is now at 2%

That 2.0% Ally No Penalty CD is a good alternative to those savings accounts paying well under 2.0% still. I had one a few months ago before I reinvested it to something different.

 

[Gotadimple]

Another week, another American Express high yield interest rate change. From 1.5% (8/11) to 1.65% (8/19).

 

[Henry Lili]

I keep seeing posts about rates at specific banks and credit unions and they’re almost all below what Treasuries and brokered CDs are paying. Isn’t it much simpler to keep all of your money in one place (Vanguard, Fidelity, Schwab) and get great rates and convenience? Why deal with multiple institutions if you don’t need to and if their rates aren’t even better?

Nothing at Schwab was close to NASA FCU. No real membership requirements other then "joining" some NASA thing for free and I'm a member anyway so for me an easy decision. Also, many brokered CD's don't pay monthly. Fine if it's short term.

 

[Henry Lili]

Maybe their penalty is the low rate?

[emoji1787]

 

[pb4uski]

Nothing at Schwab was close to NASA FCU. No real membership requirements other then "joining" some NASA thing for free and I'm a member anyway so for me an easy decision. Also, many brokered CD's don't pay monthly. Fine if it's short term.

I dunno. There were only 3 offerings that looked interesting compared to brokered CDs or USTs. The most attractive NASA FCU rates that I saw were 3.55% for 9 month CD, 3.75% APR for 15 month CD and 3.85% for 49 month CD.

https://www.nasafcu.com/personal/checking-savings/certificates/certificates---rates

Schwab is 3.10% for a 9 month UST (45 bps lower), 18 month CDs are 3.33% (42 bps lower) and 4 year CDs are 3.65% (20 bps lower). Is 20-45 bps extra worth having an account at yet another financial institution? Borderline for me.

I'm not opposed to credit union CDs where they provide a much better yield over much more convenient brokered CDs and USTs. I currently have a lot of 3.0-3.5% CDs with various credit unions that I bought in 2019... the spread on those was well worth the effort but I'm not sure if it will be when they mature in 2024.

 

[bmcgonig]

Check out a MM, FZDXX, yield is 2.2%

Does Schwab have the equivalent?

 

[target2019]

Schwab money funds are here:
https://www.schwab.com/money-market-funds

 

[Chuckanut]

I'm not sure that as I age, I will be happy with having my assets scattered over many credit unions. Especially, if the difference in the rate is 0.4% or less. As some point, complications may cost me more than the little bit of money I lose.

 

[audreyh1]

I haven’t added a new bank or credit union in many years, and dropped one in the interest of simplification/consolidation.

I plan to gradually reduce the number of banks and credit unions and credit cards as I age. A slew of them are related to foreign travel.

 

[jazz4cash]

I'm not sure that as I age, I will be happy with having my assets scattered over many credit unions. Especially, if the difference in the rate is 0.4% or less. As some point, complications may cost me more than the little bit of money I lose.

I’ve made the decision to simplify. Having IRA accounts adds a layer of complexity that my tiny community bank and assortment of credit unions don’t handle well. About 30% of IRA transactions need intervention to fix an error.

 

[John Galt III]

I'm surprised by how many people are willing to forgo a half percent interest just to consolidate. And I am one of them, lol. I have 4 accounts already. Andrews FCU, Vanguard, Penfed CU, and TreasuryDirect. (I could not resist the 9% I Bond deal, so I added this one recently). NASA interest rates are tempting, but I'm not biting at this point.

 

[COcheesehead]

Consolidation is powerful just to get an accurate picture of your finances, simplify tax time, reduce risk of losing accounts as we age and some providers reward you for having larger amounts of assets with them. Perks.

 

[11522914]

I'm surprised by how many people are willing to forgo a half percent interest just to consolidate. And I am one of them, lol. I have 4 accounts already. Andrews FCU, Vanguard, Penfed CU, and TreasuryDirect. (I could not resist the 9% I Bond deal, so I added this one recently). NASA interest rates are tempting, but I'm not biting at this point.

I agree .50 is tempting but recently consolidated everything into my brokerage account. I like it.

I'm also keeping everything very short term while the fed continues to raise rates. I did buy some 5 to 10 year corporate bonds back in June when I could get 5% to 6%+ but the market has changed due to the drop in the 10 year Treasury. Patiently waiting for the shoe to drop again [emoji848]

Meanwhile just bought a 10/4/22 Treasury at 2.31% which at this point is good enough for me.

I'm timing my short term buys close to Fed meetings.

 

[COcheesehead]

I agree .50 is tempting but recently consolidated everything into my brokerage account. I like it.

I'm also keeping everything very short term while the fed continues to raise rates. I did buy some 5 to 10 year corporate bonds back in June when I could get 5% to 6%+ but the market has changed due to the drop in the 10 year Treasury. Patiently waiting for the shoe to drop again [emoji848]

Meanwhile just bought a 10/4/22 Treasury at 2.31% which at this point is good enough for me.

I'm timing my short term buys close to Fed meetings.

I also bought some nice yields on intermediates in mid June, but I agree that now, with an occasional exception, the bond market doesn’t capture my attention like it did a couple months back and my money market pays me 2.2% so I don’t feel too bad sitting on some cash. We’ll see what happens from here.

 

[Chuckanut]

I haven’t added a new bank or credit union in many years, and dropped one in the interest of simplification/consolidation.

I plan to gradually reduce the number of banks and credit unions and credit cards as I age. A slew of them are related to foreign travel.

+1

I am beginning to realize the complicated stuff may end up costing me far more in time and dollars than simplifying on a few institutions that basically do a good job day in and day out. I can handle the mix now, but 10 years from now? The fact that on any given day another institution may do the job a bit better is interesting, but not worth the hassle and risk. Time has value.

 

[Montecfo]

I dunno. There were only 3 offerings that looked interesting compared to brokered CDs or USTs. The most attractive NASA FCU rates that I saw were 3.55% for 9 month CD, 3.75% APR for 15 month CD and 3.85% for 49 month CD.



https://www.nasafcu.com/personal/checking-savings/certificates/certificates---rates



Schwab is 3.10% for a 9 month UST (45 bps lower), 18 month CDs are 3.33% (42 bps lower) and 4 year CDs are 3.65% (20 bps lower). Is 20-45 bps extra worth having an account at yet another financial institution? Borderline for me.



I'm not opposed to credit union CDs where they provide a much better yield over much more convenient brokered CDs and USTs. I currently have a lot of 3.0-3.5% CDs with various credit unions that I bought in 2019... the spread on those was well worth the effort but I'm not sure if it will be when they mature in 2024.

I am already a member at NASA. For me definitely worth a look. No money there now.

NASA has a history of rolling out some attractive rates

 

[copyright1997reloaded]

I just put in an order for the 180-day treasury bills being auctioned Monday (8/22). Six month t-bills are currently north of 3%. I might have grabbed some of those high rate CD deals, but I am pondering moving next year and want to remain flexible in terms of cash in case I need to buy another home (e.g. prior to selling the current one).

Here's a graph of the treasury issue yield curve:
https://www.ustreasuryyieldcurve.com/

 

[Graybeard]

I just put in an order for the 180-day treasury bills being auctioned Monday (8/22). Six month t-bills are currently north of 3%. I might have grabbed some of those high rate CD deals, but I am pondering moving next year and want to remain flexible in terms of cash in case I need to buy another home (e.g. prior to selling the current one).

Here's a graph of the treasury issue yield curve:
https://www.ustreasuryyieldcurve.com/

That is a tempting yield. Like you, I am staying flexible by keeping most of my fixed income in the Vanguard Settlement Fund. I have some T bills maturing from August to October but that money will stay in the SF. As long as the Fed is in a rate hiking mood, I figure the SF will track the 1-3 month T bills close enough that I'm OK with the yield from the SF. When it looks like the Fed is done hiking, I'll buy 3, 6, maybe 12 month T bills. I want to keep "cash" available and not tied up in case I need it for a roof or some other lesser but still largish expense.

 

[lucky penny]

That is a tempting yield. Like you, I am staying flexible by keeping most of my fixed income in the Vanguard Settlement Fund. I have some T bills maturing from August to October but that money will stay in the SF. As long as the Fed is in a rate hiking mood, I figure the SF will track the 1-3 month T bills close enough that I'm OK with the yield from the SF. When it looks like the Fed is done hiking, I'll buy 3, 6, maybe 12 month T bills. I want to keep "cash" available and not tied up in case I need it for a roof or some other lesser but still largish expense.

I've been meaning to ask this question for a while:

I currently have money in VMRXX (VG's Cash Reserves Federal Money Market Fund Admiral Shares, which is showing a 7-day yield of 2.12%) & I've been assuming that's the "settlement fund" everyone is referring to -- is it? Can I simply transfer funds in & out of that fund to my bank or any other account?

I'm confused because I also see listed in my Brokerage Acct something called "Vanguard Federal Money Market Fund (Settlement fund)", which shows a balance of $0 funds available. Can someone please explain in general how & when funds move in & out of that account, and more to the point, whether I would need to use that account at all if I want to transfer funds in & out of VMRXX for the short-term?

 

[Another Reader]

VMFXX is the settlement fund in my taxable Vanguard account. It currently pays 2.11 percent, based on the 7 day SEC yield. The settlement account is the one that money enters and exits Vanguard. VMRXX is not the settlement account. You buy and sell the shares in that fund and the money goes through the settlement account in both directions. VMRXX currently pays 2.12 percent. So, to buy VMRXX or sell it and move the money somewhere else, you go through the settlement account, VMFXX.

 

[bmcgonig]

Schwab money funds are here:
https://www.schwab.com/money-market-funds

Thank you

 

[JoeWras]

I'm going to go down an twisted, but potentially important, tax hole regarding VMFXX vs T-Bills which could make VMFXX less desirable in some cases. This was brought to my attention by this post at the BH cult site.

If you live in a no-tax or low-tax state, stop here and don't worry. Actually, for most of us, don't worry about it. But live in NY, CT, CA? You may want to keep reading.

Most states allow one to avoid state taxation on income from "US Government Obligations". For those of us who take advantage of this, we know that sometimes a lot of manual math is require at tax time. It is worth it. The manual math is required because funds typically don't have 100% in "US Government Obligations" (USGO). So they publish a table and you peel off the percentage for tax calculations. Last year, VMFXX was published at 73% USGO. As of right now, it is below 50%.

In my case, I'm not going to sweat it. Even if it comes out to be 40%, that's still a nice tax advantage since my state allows the calculation at any percentage.

However, for those living in CA, NY and CT, there is a danger that VG will publish a number below 50%, and in those states, that eliminates the state tax deduction. Is it end of the world? No. Basically, VMFXX becomes taxed like a CD or bank account.

However, if one does want to take advantage of this, a little short term T-Bill ladder will qualify for the tax advantage. And, if it is a short term mix of 4, 8 and 13 wk, it matches or beats VMFXX yield pretty well, at this time. Continued interest rises could obviate that and allow VMFXX to be ahead, especially with 13 wk T-Bills.

VMFXX uses repurchase agreements which allows them to turn on a dime as these are very short term, like days or overnight. I don't fully understand how these work, I just know they don't qualify as USGO since they are technically loans, even though they are backed by Treasuries as collateral.