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

[npage]

Agreed, while I get the theoretical we are losing to inflation booking anything longer term with a lower rate than the then current inflation number. It feels good to be able to get some return without stock risk.

I'm hoping we have another year to lock some more in.

 

[JackJester]

Thanks to the fine folks on this forum I just waded into the CD/Treasuries aspect of Fixed Income. Today I set up a 2 yr 4 rung CD ladder using the Schwab ladder builder tool. Avg APY/YTM = 4.14% I also purchased a 1 yr US Treasury YTM = 4.258%. I’m sure there will be more purchases to follow as I venture forward. And, I’m glad I’m working on the premise noted by Dash man … “In this environment, he who loses least, wins."

 

[calmloki]

Just had a wire transfer from GTE to Vanguard brokerage account land at VG today and closed the GTE accounts. Hefty six month interest penalty, but at 3% with 23 months left on the CD till maturity Treasuries make more sense. Our Navy FCU CDs are at 3% as well, but have a 12 month penalty that means we don't break them.

Now I have to decide what duration Treasuries. Think I'll stick with 6 and 12 month T-bills in hope/fear that rates continue going up. Had a call from a company that is handling a refi on a new construction home we did a hard money loan on. Scary biggest loan we've ever done. Real happy the folks have finally got their home finished and are about to be out from under our 12% loan, but going to really notice the lack of their monthly payment. Our cash pile is moving well into stupid high numbers (for us) as our investments shrink or end.

 

[Car-Guy]

I'm with Carguy and aja, although I am keeping some money in equities, in the near-term I am all about a steady income flow.

I'm keeping plenty "available" for equities too.. Although the way the markets have been acting this year, I may just buy more CD's, especially if they go up another few points in the near term... Don't need the cash in that "bucket" anytime soon anyway.

 

[audreyh1]

In this environment, he who loses least, wins.

Right!

And you have to look at the investment mix as a whole, not just the components.

Our investment portfolio has been running way ahead of inflation for a long time. This year we’ve given a good chunk back, but we are still ahead. Personally, living entirely off our investments for a very long time and still keeping up with inflation long term feels like gravy. Some years (like 2008-2011) we will fall somewhat behind inflation - that’s how it goes.

P.S. I’m a total return investor and don’t care about income generation.

 

[Drake3287]

In this environment, he who loses least, wins.

Exactly!

 

[pletal]

Just had a wire transfer from GTE to Vanguard brokerage account land at VG today and closed the GTE accounts. Hefty six month interest penalty, but at 3% with 23 months left on the CD till maturity Treasuries make more sense. Our Navy FCU CDs are at 3% as well, but have a 12 month penalty that means we don't break them.

Now I have to decide what duration Treasuries. Think I'll stick with 6 and 12 month T-bills in hope/fear that rates continue going up. Had a call from a company that is handling a refi on a new construction home we did a hard money loan on. Scary biggest loan we've ever done. Real happy the folks have finally got their home finished and are about to be out from under our 12% loan, but going to really notice the lack of their monthly payment. Our cash pile is moving well into stupid high numbers (for us) as our investments shrink or end.

FYI, I have a lot of CD’s at Navy FCU. You can pull interest out penalty free, Justin case you are not aware of that feature.

 

[calmloki]

FYI, I have a lot of CD’s at Navy FCU. You can pull interest out penalty free, Justin case you are not aware of that feature.

Yep, did just that with one of our CDs there today. They mentioned that dividends can be pulled out penalty free but can't be re-deposited in the CD. Also, the penalty amount was the same whether I reduced the CD size by pulling the dividends or left them in. Doesn't seem right, but the penalty was the same before and after I pulled the dividend. Thought I was being smart, but seems I was wrong. I didn't break the CD.

 

[Dtail]

Just had a wire transfer from GTE to Vanguard brokerage account land at VG today and closed the GTE accounts. Hefty six month interest penalty, but at 3% with 23 months left on the CD till maturity Treasuries make more sense. Our Navy FCU CDs are at 3% as well, but have a 12 month penalty that means we don't break them.

Now I have to decide what duration Treasuries. Think I'll stick with 6 and 12 month T-bills in hope/fear that rates continue going up. Had a call from a company that is handling a refi on a new construction home we did a hard money loan on. Scary biggest loan we've ever done. Real happy the folks have finally got their home finished and are about to be out from under our 12% loan, but going to really notice the lack of their monthly payment. Our cash pile is moving well into stupid high numbers (for us) as our investments shrink or end.

I thought someone mentioned either in this thread or another one that GTE allowed the termination of those 5 year CD's with no penalties.

 

[Freedom56]

AMEX Bank has 3 year 4.40% CDs (non-callable) at Fidelity and TDA/Schwab.

CUSIP: 02589AE24 Maturity 10/6/2025


Fixed income investing hasn't be this easy in a long time. Rolling coupon payments and maturities/called securities is pretty effortless these days.

 

[copyright1997reloaded]

Reading this thread points out to me that there might be massive retail money flow out of stocks and into CD's/short term bonds.

Not anyone here ( ) but lots of folks who in the past were "buy the dip" but after buying the dip and getting creamed are net moving assets to "safe" places.

I have been on record (i.e. babbling on these forums) that I didn't think the bottom was in (even during the July/August run up), however the more kind of talk like this I see the closer I think we are to a bottom. I am certainly not there yet but this makes me go hmm. I definitely remember as a young pup investor in 1979/80/81 my coworkers talking about their great CD's. Meanwhile, I was timidly nibbling at stocks. (I remember buying Stryker about 6-months after IPO - profitable, great bones (UpJohn family) at something like 14x.)

I'm not ready to commit any sort of sizable capital flow back to equities, but thinking that staying relatively short term is a good plan for $ that I might eventually want back into equities.

 

[frank]

what length of time are most of you looking for in cd's? short term to see if rates go up further or long term at 4-5%? just curious. I am sitting on some money in a mm account at 2.16 and waiting to see what the rates will go to, but don't know how long to wait before jumping. should I buy short term cd's at the 12-18 mo. at current good rates or wait for rates to go up on longer term?

 

[ShokWaveRider]

We will do 5% for 5 years Max.

 

[eytonxav]

I have been on record (i.e. babbling on these forums) that I didn't think the bottom was in (even during the July/August run up), however the more kind of talk like this I see the closer I think we are to a bottom.

While the investor concern level has risen substantially, I don't think we are there yet. I do not see blood running in the streets, but if we drop another 15% from here, that would make me want to start buying more equities. For those that are still working with longer horizons till retirement and are still contributing to their portfolios, I would not be overly worried.

 

[Freedom56]

Two to three years is the sweet spot right now for treasuries, CDs, and high grade corporates.

 

[erkevin]

Frank, focusing on 3-month to a year or so in duration. The 3 and 4 month CDs, I got in the neighborhood of 2.5- 2.7%, the 6-months+, I got 4%, I purchased a 13-month at 4.2%. I have CDs maturing every month in the hope that I will find new issues at higher rates. If I come across any 5+%, I will seriously consider longer durations

 

[Car-Guy]

Two to three years is the sweet spot right now for treasuries, CDs, and high grade corporates.

I think that's reasonable, all things considered... That's why I bought a bunch of CD's that will all mature within the next 18 mos... Many sooner.. Then I hope to buy back in and lock in even higher rates and longer maturities. Still a crap shoot, but seems reasonable (to me), at this time.

 

[Love This Community]

Just curious, are most of the responders on this particular thread already retired? Asking because I am still w**king and still have more than 7 years to go. What would you have done if you were working in current environment. Just wanted to get a perspective from those that are still w*rking.

Additional context:

We are contributing maximum to 401K, HSA, purchased I bonds (didn’t take advantage of gift giving option).

 

[erkevin]

Retired. If I were still working (in the accumulation phase), i would not be buying CDs, I would be buying equities at their sale prices right now.

 

[Car-Guy]

Just curious, are most of the responders on this particular thread already retired? Asking because I am still w**king and still have more than 7 years to go. What would you have done if you were working in current environment. Just wanted to get a perspective from those that are still w*rking.

Additional context:

We are contributing maximum to 401K, HSA, purchased I bonds (didn’t take advantage of gift giving option).

Very much retired.... For the first 25 to 30 years of building my 401k it was mostly in equities. But I converted 100% of my investments in my 401k from equities to fixed income ~5 years before I retired and it's still invested that way today...

 

[copyright1997reloaded]

Just curious, are most of the responders on this particular thread already retired? Asking because I am still w**king and still have more than 7 years to go. What would you have done if you were working in current environment. Just wanted to get a perspective from those that are still w*rking.

Additional context:

We are contributing maximum to 401K, HSA, purchased I bonds (didn’t take advantage of gift giving option).

30 years to go? Emergency fund and then almost all equities (95-100%)
20 years to go? Emergency fund on steroids', very strong on equities (80%)
10 years to go? Emergency fund w/enough to get by for a couple years, rest equities? (70%?)
7 years to go? Hm, now getting into the phase where a super-big drop would impact my go date. Same as 10 years but maybe 65% overall equities?

I'm now under 50% equities (retiring "soon" from my 2nd career). My kid is 20, every week 1/3 of the net pay goes to a Roth (all in equities).

 

[copyright1997reloaded]

While the investor concern level has risen substantially, I don't think we are there yet. I do not see blood running in the streets, but if we drop another 15% from here, that would make me want to start buying more equities. For those that are still working with longer horizons till retirement and are still contributing to their portfolios, I would not be overly worried.

Agreed. Got to just wait it out.

 

[Freedom56]

Retired, travelling, and managing two large fixed income portfolios.

 

[ShokWaveRider]

Schwab Highest MM fund Update:

SWVXX - 2.78%
SNAXX - 2.93%

Getting quite competitive, will be ~3% before we know it..

 

[audreyh1]

Retired. If I were still working (in the accumulation phase), i would not be buying CDs, I would be buying equities at their sale prices right now.

+1