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

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Brokered CDs at Fidelity:
5-year 3.0%
10-year 3.25%

They are callable, but these rates are milestones on the march higher.
 
I liked the secondary market cuz I could buy a T bill that matured in mid August with a coupon that is more than half of a 1 year bill for just 4 months. If you can do that say 2 or 3 times a year the rate looks like it is quite a bit more than buying a 1 year bill unless I am misunderstanding what I saw, this is new stuff to me. But as mentioned, you pay a bit more on the secondary market.
A secondary with a high coupon should be trading at a premium bringing the YTM down to market rates. In a taxable account under this scenario, you will pay federal income tax on the high coupon rate and have a ST capital loss (bought at 100.50, matured at 100).

Some secondaries have low coupons (0.25%) so most of the YTM is capital gains received at maturity. LTCG are taxed at a lower rate than interest on the federal return and the coupon is state tax free.
I bought my first T-bills from the Fidelity secondary market order tool....

...The problem is that after selecting an offer with a lower minimum and selecting preview order, it goes back to the offer with a minimum of 300 bonds ($300k). I tried and tried and eventually it accepted the order. I bought another bond and had the same issue. It took four tries before the order was accepted.
This occurs when the price changes before the order is submitted and your limit price is now too low for the quantity specified. On the Place Order screen, there is a link in the lower right corner of the expanded More Quotes section to refresh the Depth of Book prices. I manually enter the new limit price as I find it quicker than starting over.

I have also set limit prices 0.005 higher than the Depth of Book price for the specified quantity to ensure it's filled. It's only 5 cents more per $1000 bond.
 
I couldn’t find MYGAs as an option to purchase in my Fidelity account. Where are they?
 
This occurs when the price changes before the order is submitted and your limit price is now too low for the quantity specified. On the Place Order screen, there is a link in the lower right corner of the expanded More Quotes section to refresh the Depth of Book prices. I manually enter the new limit price as I find it quicker than starting over.

I have also set limit prices 0.005 higher than the Depth of Book price for the specified quantity to ensure it's filled. It's only 5 cents more per $1000 bond.



Thanks! I’ll check that out but I recall the error flag said the order quantity did not meet the minimum so that is confusing. I also nearly muffed the order by forgetting to have extra funds available to pay the accrued interest.
 
I couldn’t find MYGAs as an option to purchase in my Fidelity account. Where are they?
Fidelity MYGA rates can be found here: https://fixedincome.fidelity.com/ftgw/fi/FILanding#tbannuities

You can call the number on the webpage to start the application process.

Thanks! I’ll check that out but I recall the error flag said the order quantity did not meet the minimum so that is confusing. I also nearly muffed the order by forgetting to have extra funds available to pay the accrued interest.
Yeah, it's not the most straightforward language. When researching, it may look like this.

100.200 Min: 300
100.250 Min: 5

If you want 10, it defaults to a limit price of 100.250. By the time the order is submitted, the price changed to 100.260. Your limit order no longer meets the minimum requirements. Sometimes there is a popup saying that order (100.250) can be used for a $300k purchase.
 
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Cycle is back! its time to activate this thread.

I have seeing the improvement of CD rate.
I have 13 month CD with synchrony that renewed in November 2021 at 0.55%, as of now the 13 month CD is 1.15%. With bond yield dropping significantly and inflation concern, its good to see CD rate is chipping up
 
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Just like 2018 I've begun to shift to longer term holdings. I'll take whatever little benefit I can get while rates are climbing. Personally I doubt the climb in short rates will translate into significantly higher long rates. Due to personal longevity issues I'm dipping my toes in the Treasury Strips market while constructing a non rolling ladder for DW. My only fixed income advice is to match your holdings with your anticipated needs. Meanwhile let your risky equities run for potential long term gains.
 
Brokered CDs at Fidelity:
5-year 3.0%
10-year 3.25%

They are callable, but these rates are milestones on the march higher.
A year ago I would have jumped over the Grand Canyon to get the 5 year deal. Today, with 8%+ inflation, I think that might make me more like the donkeys that carry people down into the canyon.
 
This is almost laughable if it wasn't so sad.

Today I received an email from a big name internet bank bragging about how I can increase my earnings by switching to them. Their comparison was the internet bank's 0.5% interest rate with a brick and mortar bank's rate of 0.01%. On $10,000 I could earn $50 from internet bank compared to the BnM bank's $1. WOW? Nope.

I get this on the day that I am told the inflation rate for the last 12 months is over 8%. I don't know whether to laugh or cry.
 
I just threw a large amount of cash into a 10 month @ 1.1% CD at Marcus (Goldman Sachs). I figured with the multiple coming rate hikes, 10 months is not too long to tie up this money.
 
I just threw a large amount of cash into a 10 month @ 1.1% CD at Marcus (Goldman Sachs). I figured with the multiple coming rate hikes, 10 months is not too long to tie up this money.

The t-bills are a nice option. We currently have way too much at Marcus in MM account earning 1.1%, fully liquid. I plan on jumping to T-bills very soon as the 6 month rate improves. We got the 1.1% on MM since mid last year. 0.5% as advertised, then another 0.1% for AARP promo till June 2023, and the additional 0.5% for 3 months for each referral account opened. Not saying the CD rate is bad, it just ties you up from other options as rates go higher at each auction.....:flowers:

BTW, yesterday the 6 month T-bill was 1.23%, today it is 1.2%.....https://home.treasury.gov/resource-...yield_curve&field_tdr_date_value_month=202204
 
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I've been keeping that Marcus ten month cd offer in my inbox for awhile, but deleted it today after deciding to get a 12 month T bill at next week's auction. Not that much difference in the time commitment and significant difference in likely interest rate.
 
I just threw a large amount of cash into a 10 month @ 1.1% CD at Marcus (Goldman Sachs). I figured with the multiple coming rate hikes, 10 months is not too long to tie up this money.
You can get a 10-month treasury right now paying 1.57%. Go a couple of months longer and get about 1.8%.
 
Some secondaries have low coupons (0.25%) so most of the YTM is capital gains received at maturity. LTCG are taxed at a lower rate than interest on the federal return and the coupon is state tax free.

Your comment about "most of the YTM is capital gains received at maturity. LTCG are taxed at a lower rate than interest on the federal return" being taxed as capital gains is mostly incorrect.

You could claim this additional income annually. But, it's easier to delay it to maturity. Assuming you claim it at maturity, normally, it is taxed as interest when the bond matures. If the discount is very small, it might qualify as capital gains. Google the "de minimis tax rule" for more information when this applies.
 
This is almost laughable if it wasn't so sad.

Today I received an email from a big name internet bank bragging about how I can increase my earnings by switching to them. Their comparison was the internet bank's 0.5% interest rate with a brick and mortar bank's rate of 0.01%. On $10,000 I could earn $50 from internet bank compared to the BnM bank's $1. WOW? Nope.

I get this on the day that I am told the inflation rate for the last 12 months is over 8%. I don't know whether to laugh or cry.
Pretty disappointing to get those ads, but the mail carrier needs the work!

I posted recently about a CD renewal with them, and whether it was worth it stay with a 1-year CD (0.7%) instead of the hi-yield (0.5%). I went with half in the CD, because rates are going to rise faster than they want to share.
 
Can anyone tell me if there are any strings attached to these online higher rate savings accounts like time on deposit or something else? I've never used an online bank but with rates going up and my having a relatively large cash position I would like to take advantage of these higher interest rates.



Please give a rookie a crash course from transferring money to an online bank to potential pitfalls to avoid.


Thank you.
 
Can anyone tell me if there are any strings attached to these online higher rate savings accounts like time on deposit or something else? I've never used an online bank but with rates going up and my having a relatively large cash position I would like to take advantage of these higher interest rates.
No strings attached to the accounts themselves. The only time there are some strings is if they have a sign up bonus. Those require you to keep a certain amount on deposit for a certain period, like 90 days, to earn the bonus. But for the account itself, nope. Most have no minimum balance and no fees.


There is a limit of 6 withdrawals or transfers per month, but only if they are initiated in that account. For example, if I make a transfer from Ally to Vanguard, that counts as one of the six. But if I initiate the transfer in my Vanguard account to pull money from Ally, that does not count.


All of that said, I'd also suggest you consider other options. Depending on how much cash you're talking about and how liquid you need it to be, you can do better with short term treasuries. Right now, Ally is paying 0.5% but you can buy a 3-mo treasury paying 0.8%, a 6-mo at about 1.1%, etc. If you don't need to have immediate access to all of the money, you might want to spread it around a bit.
 
No strings attached to the accounts themselves. The only time there are some strings is if they have a sign up bonus. Those require you to keep a certain amount on deposit for a certain period, like 90 days, to earn the bonus. But for the account itself, nope. Most have no minimum balance and no fees.


There is a limit of 6 withdrawals or transfers per month, but only if they are initiated in that account. For example, if I make a transfer from Ally to Vanguard, that counts as one of the six. But if I initiate the transfer in my Vanguard account to pull money from Ally, that does not count.


All of that said, I'd also suggest you consider other options. Depending on how much cash you're talking about and how liquid you need it to be, you can do better with short term treasuries. Right now, Ally is paying 0.5% but you can buy a 3-mo treasury paying 0.8%, a 6-mo at about 1.1%, etc. If you don't need to have immediate access to all of the money, you might want to spread it around a bit.

I have some monies at Ally, however the post is spot on.
Nothing to be afraid of with online banks. No catches and Ally is quite conscientious about security.
 
Steve, I have used American Express online savings & Barclays online savings for years & never had any issues. (I also bought CDs with them, though none now since rates are so low.) Very easy to transfer funds to those accounts from my checking account, & to transfer back to the checking account when needed. The accounts were also very easy to set up -- just go to the websites & indicate that you want to open an account & they will ask for the info they need to get started. Am Ex, Barclays & Ally rates are usually pretty similar - when one changes, the others soon follow.

If you're hesitant, start small - you'll quickly see how it works.
 
One catch is they are FDIC insured to $250k. If you have over that, then you need more than one account (to be insured).
 
Steve, I have used American Express online savings & Barclays online savings for years & never had any issues. (I also bought CDs with them, though none now since rates are so low.) Very easy to transfer funds to those accounts from my checking account, & to transfer back to the checking account when needed. The accounts were also very easy to set up -- just go to the websites & indicate that you want to open an account & they will ask for the info they need to get started. Am Ex, Barclays & Ally rates are usually pretty similar - when one changes, the others soon follow.

If you're hesitant, start small - you'll quickly see how it works.

A good source for interest rates on savings accounts and CDs is www.depositaccounts.com. They also rate the service quality of the banks. I have had Ally for many years, but higher rates and good customer service are available from other banks. Amex and Ally are behind the curve on rates right now.
 
Best CD, MM Rates &amp; Bank Special Deals Thread 2022 - Please post updates here

Can anyone tell me if there are any strings attached to these online higher rate savings accounts like time on deposit or something else? I've never used an online bank but with rates going up and my having a relatively large cash position I would like to take advantage of these higher interest rates.



Please give a rookie a crash course from transferring money to an online bank to potential pitfalls to avoid.


Thank you.



I would suggest using depositaccounts.com to compare various high yield savings accounts from internet banks. Checkout the commentary and reader comments. I’m not aware of any strings like time on deposit. Look at the savings, money market and shorter term CDs to compare rates. I’ve used Ally and Marcus and have no issues but may close Ally just to simplify.

Edit: Bankrate.com is another comparison site.
 
I would wait for the next FED meeting before investing in CDs, MYGAs etc. Maybe even 2 more meetings.
I think short terms are fine. I've been buying 1-year treasuries myself. I wouldn't do anything longer like 3+ years right now.
 
Please give a rookie a crash course from transferring money to an online bank to potential pitfalls to avoid.

In setting up the account, you'll be asked for the routing number of the bank from which you'll be transferring funds, your account number & the amount you want to transfer. The actual transfer will about 2 days. Then, when you login to your new account, the home page will show the funds in your account, & options that include "Transfer funds." When you choose that, you indicate whether you want to move funds in or out of your new account; then, depending of which you choose, the bank that was the original source of funds will appear an as option to receive the funds you're transferring out, or as the source of additional funds for your new account. A couple of clicks & you're done. (You will see a warning that once you click "Confirm," the transfer can't be cancelled.)

You can add information for additional institutions you may want to use, but I find it simpler to involve just one bank (where I have my checking account), as either the source or recipient of funds for or from the online account.
 
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