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04-06-2022, 10:29 AM
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#141
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Recycles dryer sheets
Join Date: Apr 2016
Location: Bay Area
Posts: 187
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It is interesting that on my FIDO CD Research dashboard I see Ally Bank has 1 year CD's at 1.25%, 18 month CD's at 1.5%, and 2 year CD's at 2.3%. They are all starting 4/14/22. I don't know if those CD's are different from what you can buy through the ally.com site but it is interesting there is such a large disparity between what they are offering on their retail website and what you can buy through FIDO.
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04-06-2022, 11:28 AM
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#142
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Posts: 2,599
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Quote:
Originally Posted by JohnnyBGoode
but it is interesting there is such a large disparity between what they are offering on their retail website and what you can buy through FIDO.
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Same for Schwab.
But! You might want to compare T-bill rates - from The Finance Buff recent email:
You can get a feel of where the yield might land by checking Daily Treasury Par Yield Curve Rates (click on the first link on the webpage). Here's the URL of the Treasury Interest Rate Yield Curve. Next auction is @4/21 and you can buy direct from the Treasury or thru Fidelity.
https://home.treasury.gov/policy-iss...ate-statistics
__________________
Only got A dimple, would have preferred 2!
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04-06-2022, 11:56 AM
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#143
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,514
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Yes the 2 year Treasury looking pretty attractive, especially if the money is already at a brokerage.
Rates moving quite a bit now with Fed comments and minutes.
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04-06-2022, 12:05 PM
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#144
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Full time employment: Posting here.
Join Date: Jul 2018
Location: Valley of the Sun
Posts: 634
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Quote:
Originally Posted by JohnnyBGoode
It is interesting that on my FIDO CD Research dashboard I see Ally Bank has 1 year CD's at 1.25%, 18 month CD's at 1.5%, and 2 year CD's at 2.3%. They are all starting 4/14/22. I don't know if those CD's are different from what you can buy through the ally.com site but it is interesting there is such a large disparity between what they are offering on their retail website and what you can buy through FIDO.
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I noticed the same type of thing last week with CapitalOne brokered CDs on E*trade vs CDs offered on the CapitalOne website.
It may be because money obtained through brokered CDs is more firm. There is no such thing as an early withdrawal on a brokered CD (although the CD holder may sell the CD to someone else).
__________________
"... the astrologer who lived in a tumbled old tower up the valley, and put in his nights studying the stars. Every one knew he could foretell wars and famines, though that was not so hard, for there was always a war and generally a famine somewhere."
-- Mark Twain, The Mysterious Stranger
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04-06-2022, 12:10 PM
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#145
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Recycles dryer sheets
Join Date: Apr 2016
Location: Bay Area
Posts: 187
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Yes, Montecfo, I see that a 2-year treasury would yield 2.53%. Is there any reason not to do that as opposed to a 2-year CD at 2.35%?
(Sorry, I'm a newbie on purchasing treasuries directly)
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04-06-2022, 12:42 PM
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#146
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,324
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Quote:
Originally Posted by JohnnyBGoode
Yes, Montecfo, I see that a 2-year treasury would yield 2.53%. Is there any reason not to do that as opposed to a 2-year CD at 2.35%?
(Sorry, I'm a newbie on purchasing treasuries directly)
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Depending on where you live, treasuries have an added advantage besides just the higher interest rate. They are tax free on the state and local level.
I can’t think of any reason to buy a CD over a treasury paying the same or higher interest.
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04-06-2022, 12:58 PM
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#147
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Recycles dryer sheets
Join Date: Apr 2016
Location: Bay Area
Posts: 187
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Quote:
Originally Posted by disneysteve
Depending on where you live, treasuries have an added advantage besides just the higher interest rate. They are tax free on the state and local level.
I can’t think of any reason to buy a CD over a treasury paying the same or higher interest.
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Great point. As I live in a state with a high state tax rate that does make it even more compelling. Thanks.
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04-06-2022, 01:00 PM
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#148
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,134
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Ally bank 1 yr CD rate is 0.75%. The 18 month rate is 1.25%. <-- that is their highest high yield CD rate.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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04-06-2022, 02:21 PM
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#149
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,196
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Quote:
Originally Posted by JohnnyBGoode
It is interesting that on my FIDO CD Research dashboard I see Ally Bank has 1 year CD's at 1.25%, 18 month CD's at 1.5%, and 2 year CD's at 2.3%. They are all starting 4/14/22. I don't know if those CD's are different from what you can buy through the ally.com site but it is interesting there is such a large disparity between what they are offering on their retail website and what you can buy through FIDO.
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Ally just not currently competitive with CD rates. Perhaps they will develop into another Penfed.
__________________
TGIM
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04-06-2022, 02:45 PM
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#150
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,324
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Quote:
Originally Posted by Chuckanut
Ally bank 1 yr CD rate is 0.75%. The 18 month rate is 1.25%. <-- that is their highest high yield CD rate.
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But you can buy an 18-month Treasury for a full point higher at 2.27%. Not really any good reason to buy a CD right now.
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04-06-2022, 03:15 PM
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#151
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,304
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Quote:
Originally Posted by JohnnyBGoode
It is interesting that on my FIDO CD Research dashboard I see Ally Bank has 1 year CD's at 1.25%, 18 month CD's at 1.5%, and 2 year CD's at 2.3%. They are all starting 4/14/22. I don't know if those CD's are different from what you can buy through the ally.com site but it is interesting there is such a large disparity between what they are offering on their retail website and what you can buy through FIDO.
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The Ally CD's on the Fido CD webpage are different. They are brokered CD's. The broker has an arrangement with the issuer to sell large lots of the CD's. One big difference is that the brokered CD's get a market valuation if you need to sell before maturity. That could be good or bad depending on the direction of rates. CD's bought directly from a bank or credit union generally have an early withdrawal penalty so you know exactly what the cost will be.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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04-06-2022, 04:03 PM
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#152
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Here is an alternative to a CD. AT&T notes maturing 6/30/22 (in about 3 months) are now yielding 3.3%. The probability of default on these notes are nil. Bond funds are into forced selling at a loss due to redemptions. I'm going to put some limit orders on this one at about $98.75 to park some short term cash.
https://finra-markets.morningstar.co...ticker=C629795
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04-06-2022, 04:14 PM
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#153
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 37,931
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Quote:
Originally Posted by JohnnyBGoode
It is interesting that on my FIDO CD Research dashboard I see Ally Bank has 1 year CD's at 1.25%, 18 month CD's at 1.5%, and 2 year CD's at 2.3%. They are all starting 4/14/22. I don't know if those CD's are different from what you can buy through the ally.com site but it is interesting there is such a large disparity between what they are offering on their retail website and what you can buy through FIDO.
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Interesting! Thanks!
We saw this pattern last time rates started rising.
__________________
Retired since summer 1999.
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04-06-2022, 05:48 PM
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#154
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,324
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Quote:
Originally Posted by Freedom56
Here is an alternative to a CD. AT&T notes maturing 6/30/22 (in about 3 months) are now yielding 3.3%. The probability of default on these notes are nil. Bond funds are into forced selling at a loss due to redemptions. I'm going to put some limit orders on this one at about $98.75 to park some short term cash.
https://finra-markets.morningstar.co...ticker=C629795
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I searched that CUSIP at Vanguard and it's showing as "Called in full 4/30/22 @ 100 with a YTW of 4.603%, maturity 4/30/22.
Am I doing something wrong?
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04-06-2022, 06:18 PM
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#155
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,134
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Quote:
Originally Posted by disneysteve
But you can buy an 18-month Treasury for a full point higher at 2.27%. Not really any good reason to buy a CD right now.
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Yes. That was my point. I figure they are counting on the uniformed to let their CD's renew automatically.
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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04-06-2022, 06:31 PM
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#156
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,324
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Quote:
Originally Posted by Chuckanut
Yes. That was my point. I figure they are counting on the uniformed to let their CD's renew automatically.
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I will admit I have been guilty of that. I only recently learned how simple buying treasuries is and bought my first ones last month. This forum is to thank for that.
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04-06-2022, 06:45 PM
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#157
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by disneysteve
I searched that CUSIP at Vanguard and it's showing as "Called in full 4/30/22 @ 100 with a YTW of 4.603%, maturity 4/30/22.
Am I doing something wrong?
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I'm not seeing that at Fidelity nor TD Ameritrade. But the market has closed. It would be nuts for this issue to sell below par if it was called with 24 days of interest accrual remaining. It sold for $98.71 about 30 days ago which would be even dumber on the part of the seller.
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04-06-2022, 06:59 PM
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#158
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Thinks s/he gets paid by the post
Join Date: Feb 2021
Posts: 2,324
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Quote:
Originally Posted by Freedom56
I'm not seeing that at Fidelity nor TD Ameritrade. But the market has closed. It would be nuts for this issue to sell below par if it was called with 24 days of interest accrual remaining. It sold for $98.71 about 30 days ago which would be even dumber on the part of the seller.
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That's odd. I'll have to check tomorrow.
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04-06-2022, 08:49 PM
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#159
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,514
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Quote:
Originally Posted by JohnnyBGoode
Yes, Montecfo, I see that a 2-year treasury would yield 2.53%. Is there any reason not to do that as opposed to a 2-year CD at 2.35%?
(Sorry, I'm a newbie on purchasing treasuries directly)
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Not that I can think of. As mentioned the state tax exemption makes Treasuries more compelling.
It's simple to buy Treasuries via your brokerage. Find an issue to like then if you still have questions call the bond desk. They are very helpful.
I think you can also buy new issues at Treasury Direct.
I think these are going to be pretty fruitful for the next few months at min. Banks are reluctant to raise rates quickly.
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04-07-2022, 06:03 AM
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#160
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Full time employment: Posting here.
Join Date: Dec 2017
Posts: 942
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The creeping up continues: viobank MM now at .71%.
__________________
FIREd at 59.5 on 2019-01-18
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