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

[ModestNestEgg]

I saw that CFG Community Bank, which was listed on Bankrate with a 3.65% 5 yr. CD has a message that they have temporarily suspended online applications due to the volume they were receiving.

 

[Henry Lili]

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.

Depends on a couple things for me. In the NASA case I already have an account so no additional hassle and they pay monthly. The ST brokered CDs pay less frequently in many cases. I like brokered CD's for other reasons in addition to convenience. There is no ewdl penalty, per se' but you get what the market gives. I currently have 2 at Schwab both mature this year.

 

[lucky penny]

For anyone buying this today, rates (as I type this) for the 6-month bill are 3.166%. (Note that things can move up/down between now and the auction, and the auction rate can move it given competitive bid demand/non-demand).
https://www.cnbc.com/quotes/US6m

Question: When placing an order through Treasury Direct for an auction today (with a settlement date on Thursday), when is the $$ taken from my checking account?

 

[Dash man]

Question: When placing an order through Treasury Direct for an auction today (with a settlement date on Thursday), when is the $$ taken from my checking account?

Just make sure the money is there and you won’t have to worry. [emoji3]

 

[audreyh1]

Fidelity treats it like the funds are pulled on Monday. I don’t think they’d let you place the order without the funds already there.

 

[JoeWras]

Fidelity treats it like the funds are pulled on Monday. I don’t think they’d let you place the order without the funds already there.

Lucky Penny was talking about Treasury Direct.

 

[audreyh1]

Oops, thanks!

 

[JoeWras]

It's been a long time since I bought on TD directly from a bank account, so I don't have the answer.

I do know if you don't have enough in your C&I, it fails and they send you a message.

So you may ask, "Joe how do you know this?" Well, what happened was I attempted to buy a TIPS a few years ago. I had 10k in my C&I and bought a TIPS for $10k. It failed because the TIPS were at premium at the time and needed more than $10k.

Now that I've learned how to buy Treasuries on Vanguard, I'm done with TD for all except iBonds. I'll be rolling out the money as the securities mature.

 

[COcheesehead]

Money market at Fidelity, FZDXX up to 2.21% this morning.

 

[Car-Guy]

Just noticed most of the CD maturities offered at Schwab moved up fractionally overnight. Plus, unlike a few weeks ago, there are a lot to choose from too.

 

[ShokWaveRider]

Just noticed most of the CD maturities offered at Schwab moved up fractionally overnight. Plus, unlike a few weeks ago, there are a lot to choose from too.

Maybe because the 2, 5 and 10 year treasuries were up quite a bit yesterday.

 

[Accidental Retiree]

Just noticed most of the CD maturities offered at Schwab moved up fractionally overnight. Plus, unlike a few weeks ago, there are a lot to choose from too.

Oh, they must have refreshed inventory. I looked a bit earlier and they were really low.

 

[Dash man]

2-year Treasury note auction result is 3.307%

 

[Graybeard]

I sold shares of a mutual fund in my taxable account for a $3400 LT capital loss to offset income. I put it in the settlement fund but thought why not buy some 30 day T bills for a little more yield. I was going to buy 40 1 month T bills but then I thought maybe it makes more sense to buy 20 this week and 20 next week. This will have them maturing right after the September Fed meeting and then I can assess the current yields.

Also in my rollover IRA, I have over $120k in the settlement fund so why not do the same thing there too cuz that money is just sitting there. I have wanted to keep enough in the SF, not in T bills, to satisfy my RMD if equities don't go up, if they do then I'll take the RMD from the equities.

Leaving money in the settlement fund waiting for higher T bill yields results in every week figuring the SF yield will go higher and I've been doing this since July. For the extra yield tying it up for 30 days maybe is just better. I need to start a 3 and 6 month ladder but I'm always waiting and never do anything so this can get the ball rolling to at least buy some more T bills.

 

[copyright1997reloaded]

Today's 5-year T-Note auction resulted in higher rates, 3.230% (July rate was 2.860%).

The "bid-to-cover" ratio was poor, (2.30). (Bid-to-cover is the $ amount of bids divided by amount sold. When demand is strong, the result is a higher bid-to-cover ratio. The six month historical treasury average is 2.437)

We may be seeing the end of the recent rate dip.

ETA: 20 year Bond Index ETF (TLT), starting to roll over and resume its downtrend? (i.e. rates higher)
http://tos.mx/hqwbnT0

 

[pb4uski]

It's been a long time since I bought on TD directly from a bank account, so I don't have the answer.

I do know if you don't have enough in your C&I, it fails and they send you a message.

So you may ask, "Joe how do you know this?" Well, what happened was I attempted to buy a TIPS a few years ago. I had 10k in my C&I and bought a TIPS for $10k. It failed because the TIPS were at premium at the time and needed more than $10k.

Now that I've learned how to buy Treasuries on Vanguard, I'm done with TD for all except iBonds. I'll be rolling out the money as the securities mature.

What I don't understand is that for these people who buy more than their allowance, why doesn't TD just put the money in their C&I rather than refunding it to them which takes forever. They could then send an email letting the customer know that they did that and the customer can then decide whether to withdraw it from C&I or buy a bond for the gift box or buy a UST or whatever.

 

[aja8888]

What I don't understand is that for these people who buy more than their allowance, why doesn't TD just put the money in their C&I rather than refunding it to them which takes forever. They could then send an email letting the customer know that they did that and the customer can then decide whether to withdraw it from C&I or buy a bond for the gift box or buy a UST or whatever.

You are forgetting that the Treasury is a government organization.

 

[captain3d]

Not just the government. I got a credit on my Bank of America credit card and requested to cash it back out. When it didn’t appear in my Bank of America linked account I called them. They told me a paper check was on the way.

 

[Graybeard]

I checked yields just now, VMFXX is 2.12% and Vanguard's indictive yield is 2.14%. For 2 bp more I don't think locking up money for even 30 days when rates are most likely rising makes sense. Jackson Hole on Friday could further push up rates. I'm passing once again and leaving the money in the Settlement Fund.

 

[Car-Guy]

You are forgetting that the Treasury is a government organization.

You make me laugh sometimes... The government has no organization. Disorganization, yes, but organization...

Back in the day, I had the opportunity to work with a couple of the 3 letter government agencies several times. Good people, for the most part, but .......

 

[Joylush]

At Fidelity, you don’t need the funds in the settlement in order to buy. They will liquidate your MM first to settle the buy. You will also need to rebuy the MM in order to get funds back into the higher yielding fund. I hold FDZXX yielding 2.2%. It works like a settlement with a little bit of extra effort for the buys.

FDZXX has a higher opening balance requirement. Do you know if that is a minimum which must be maintained after opening the account? It sounds like a good place to park some cash but not if you plan to use it anytime soon if you can’t dip below the opening balance requirement.

 

[mrfeh]

FDZXX has a higher opening balance requirement. Do you know if that is a minimum which must be maintained after opening the account? It sounds like a good place to park some cash but not if you plan to use it anytime soon if you can’t dip below the opening balance requirement.

I'm curious about this also. FDZXX is not listed as an option as the core position for my Fido brokerage account.

 

[Joylush]

I'm curious about this also. FDZXX is not listed as an option as the core position for my Fido brokerage account.

I just called them and they had to research to find the answer. The prospectus is not clear. But I was told you only need the minimum initial investment of 100k to open the account. There is no minimum balance requirement after it has been opened.

I don’t believe it is an option to use as your core account but is owned as a mutual fund money market account within your brokerage account like any other mutual fund would be. So if you needed to use the funds you might have to transfer from the FZDXX to the core account and use the funds from there.

 

[COcheesehead]

FDZXX has a higher opening balance requirement. Do you know if that is a minimum which must be maintained after opening the account? It sounds like a good place to park some cash but not if you plan to use it anytime soon if you can’t dip below the opening balance requirement.

They don’t hold you to the minimum.

 

[COcheesehead]

I'm curious about this also. FDZXX is not listed as an option as the core position for my Fido brokerage account.

You have to purchase it like any other fund.