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Old 04-06-2022, 10:29 AM   #141
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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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Old 04-06-2022, 11:28 AM   #142
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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.
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
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Old 04-06-2022, 11:56 AM   #143
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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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Old 04-06-2022, 12:05 PM   #144
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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.

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).
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Old 04-06-2022, 12:10 PM   #145
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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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Old 04-06-2022, 12:42 PM   #146
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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)
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 canít think of any reason to buy a CD over a treasury paying the same or higher interest.
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Old 04-06-2022, 12:58 PM   #147
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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 canít think of any reason to buy a CD over a treasury paying the same or higher interest.
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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Old 04-06-2022, 01:00 PM   #148
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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.
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Old 04-06-2022, 02:21 PM   #149
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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.
Ally just not currently competitive with CD rates. Perhaps they will develop into another Penfed.
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Old 04-06-2022, 02:45 PM   #150
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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.
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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Old 04-06-2022, 03:15 PM   #151
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Originally Posted by JohnnyBGoode View Post
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.
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.
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Old 04-06-2022, 04:03 PM   #152
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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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Old 04-06-2022, 04:14 PM   #153
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Originally Posted by JohnnyBGoode View Post
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.
Interesting! Thanks!

We saw this pattern last time rates started rising.
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Old 04-06-2022, 05:48 PM   #154
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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
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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Old 04-06-2022, 06:18 PM   #155
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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.
Yes. That was my point. I figure they are counting on the uniformed to let their CD's renew automatically.
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Old 04-06-2022, 06:31 PM   #156
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Yes. That was my point. I figure they are counting on the uniformed to let their CD's renew automatically.
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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Old 04-06-2022, 06:45 PM   #157
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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?
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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Old 04-06-2022, 06:59 PM   #158
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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.
That's odd. I'll have to check tomorrow.
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Old 04-06-2022, 08:49 PM   #159
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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)
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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Old 04-07-2022, 06:03 AM   #160
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