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

[NomDeER]

89235MPL9
Toyota Financial Sgs Bk Conditional Puts - Death Of Holder - Restricted States: OH,TX, FDIC#57542
12/02/2024
4.900

if its not this one i think its gone

No, it was a different one. Four year, 5%. The CUSIP was 89235MPK1. It's gone already. I tried buying a Discover CD this morning and something similar happened. Grabbed a cup of tea and went to order them and they were gone already.

 

[Dash man]

Ally bank raising their savings rate to 3.00%.

Synchrony Bank is 3.25%.

 

[Graybeard]

Recently threw some cabbage into VMFXX at Vanguard. Now waiting for their 7 day hold to roll off, so I can snap me up some of them 4.9 % three year noncallable CDs, if they are still there.

John Galt maybe you know this but the way you worded that post you may be making a mistake, I did. To buy treasuries at Vanguard (and I assume CDs are the same), the money has to be in the "settlement fund". I moved money to VMFXX thinking I could buy t bills but the purchase failed. Yes, the settlement fund invests in VMFXX but you can't buy from VMFXX. It's confusing and stupid and it tripped me up so just in case I want you to understand the difference and not miss out cuz the money is in the wrong place and all the Cds are sold before you can move it.

 

[jazz4cash]

John Galt maybe you know this but the way you worded that post you may be making a mistake, I did. To buy treasuries at Vanguard (and I assume CDs are the same), the money has to be in the "settlement fund". I moved money to VMFXX thinking I could buy t bills but the purchase failed. Yes, the settlement fund invests in VMFXX but you can't buy from VMFXX. It's confusing and stupid and it tripped me up so just in case I want you to understand the difference and not miss out cuz the money is in the wrong place and all the Cds are sold before you can move it.

This is what I wondered about when I asked about a ‘workaround’…..but that error message implies that you could buy from that particular fund once the holding period has expired. Where was this cabbage thrown from.

 

[John Galt III]

This is what I wondered about when I asked about a ‘workaround’…..but that error message implies that you could buy from that particular fund once the holding period has expired. Where was this cabbage thrown from.

The cabbage is from my linked checking account. I agree, the error message says nothing about buying from the wrong fund. It just says I have to wait longer. The Vanguard website even says that VFMFXX IS the settlement fund. Where would I move the cabbage inside Vanguard to make a purchase? Could I specify my linked checking account as the source for making a CD buy?

 

[John Galt III]

This is what I wondered about when I asked about a ‘workaround’…..but that error message implies that you could buy from that particular fund once the holding period has expired. Where was this cabbage thrown from.

I found this snippet from investor,vanguard.com (but no date on it) >> "The money market settlement fund paves the way for buying and selling ... by electronic bank transfer or check are subject to a 7-calendar-day hold."

 

[John Galt III]

I know I'm beating this thing to death, but I want to mention (and I guess this lets Vanguard off the hook a tiny bit) that when I am in my accounts screen, looking at VMFXX, it say something like "funds available to invest : $XX,XXX " and right under that, it says something like "funds available to invest, adjusted : $0.00 " So there's that.

 

[Ready]

Ally Bank has a 4.1% 48 month CD with an early termination penalty of 150 days. This seems like a very good deal as you can lock in the rate for four years but if rates go up the penalty for withdrawing and reinvesting it is pretty minimal compared to other banks.

 

[Rianne]

VG Federal Money Market Fund VMFXX is paying 3.62%

 

[Gotadimple]

Live Oak Bank increases yield on it's High Yield Savings account to 3.10% effective 11/22. 6-month and 12-month CDs are the sweet spot at 3.75/4.25%

 

[Drake3287]

Ally Bank has a 4.1% 48 month CD with an early termination penalty of 150 days. This seems like a very good deal as you can lock in the rate for four years but if rates go up the penalty for withdrawing and reinvesting it is pretty minimal compared to other banks.

I almost did that one today. Instead I went from an existing 20 month, 2% CD to a 12 month 4% CD and only paid 60 days of interest as a penalty. Should make me an additional $2,000. over the course of the 12 months including the cost of the penalty.

I still find it pleasantly surprising that Ally changes such a small penalty compared to most banks who want 6 months or so. In my case, if rates go to 5% I'll be locking into a longer term minus another round of penalties. In general, 12 month Ally CD's only require a 1% interest bump until it makes sense to pay the 60 day penalty.

 

[frank]

I was looking at pelican credit union at 4.97 for 60 months but they have dropped to 4.5 for 48 months. anyone see anything close to 5 for a longer term? are the rates starting to decline or am I just getting nervous? is the 5% still coming. thoughts? thanks

frank

 

[almost there]

It came and went with brokered CD's. Might come back though.
Hope so anyway.

 

[Car-Guy]

It came and went with brokered CD's. Might come back though.
Hope so anyway.

From Schwab's web site this morning... Notice the 3 and 4 yr CD's offer a lower return rate than the shorter terms.. I saw this early last week and the trend is holding.

Maturity - 6 Mo- 9 Mo- 1 Yr- 18 Mo - 2 Yr- 3 Yr - 4 Yr
APY %---4.602 4.727 4.800 4.850 4.900 4.400 4.200 --

 

[almost there]

From Schwab's web site this morning... Notice the 3 and 4 yr CD's offer a lower return rate than the shorter terms.. I saw this early last week and the trend is holding.

Maturity - 6 Mo- 9 Mo- 1 Yr- 18 Mo - 2 Yr- 3 Yr - 4 Yr
APY %---4.602 4.727 4.800 4.850 4.900 4.400 4.200 --

Yep, quite different from a couple weeks ago.
And now the banks will start to go up. Funny how that works.

 

[lawman]

Yep, quite different from a couple weeks ago.
And now the banks will start to go up. Funny how that works.

I bought a 6 month treasury from Schwab this morning. It was paying a fraction more than the c.d. I seem to prefer treasuries to C. D.'s because it seems the settlement date is usually earlier..Am I right or not necessarily so? Other than FDIC insurance what are the pros and cons of treasuries vs. c.d.'s

 

[Ready]

I bought a 6 month treasury from Schwab this morning. It was paying a fraction more than the c.d. I seem to prefer treasuries to C. D.'s because it seems the settlement date is usually earlier..Am I right or not necessarily so? Other than FDIC insurance what are the pros and cons of treasuries vs. c.d.'s

The main benefit of a bank CD is they offer a predefined early termination penalty that you can pay if you don’t want to hold the CD until maturity. In the case of Ally Bank the penalty is fairly small, which allows you to easily reinvest if rates go up.

 

[almost there]

I bought a 6 month treasury from Schwab this morning. It was paying a fraction more than the c.d. I seem to prefer treasuries to C. D.'s because it seems the settlement date is usually earlier..Am I right or not necessarily so? Other than FDIC insurance what are the pros and cons of treasuries vs. c.d.'s

"When interest rates are high, a CD may yield a better return than a bond. When interest rates are low, a bond may be the higher-paying investment."

I always go 5 yr CD's. They generally pay a bit over treasuries.
But the last decade has been anything but normal......
And now with a 2 yr CD paying 1% over a 5 yr.

 

[Drake3287]

Not to change the subject of this CD thread, but it's interesting how much the penalties bank's charge for breaking a CD vary so much. In all my many years of owning CD's, I've never overly paid attention to this bank policy or even found the need to reinvest during a CD period.

Obviously now it's a major factor when investing in the CD market. My recent 60 day Ally Bank penalty is a major reason why people should be looking into using this bank instead of maybe others. In general, a 1% bump will pay for itself unlike most other banks that require a 180 day penalty for most CD's.

Like many here, I'm holding out hope for 5% so I can lock in several CD's at much longer terms.

 

[Drake3287]

Just read this in our local paper here in the Bay Area this morning. Summit State Bank offering a 12 month CD at 4.75%. For a brick and mortar bank, this is a huge jump from the online banks.

 

[almost there]

Just read this in our local paper here in the Bay Area this morning. Summit State Bank offering a 12 month CD at 4.75%. For a brick and mortar bank, this is a huge jump from the online banks.

Unfortunately, few are willing to risk offering much over 4% past 3 years....
A big change from the prev. 1-2 months. But getting close to 5% for 1-3 years is no problem..

 

[copyright1997reloaded]

Hey all
I am in the process of moving a 7-figure 401K to Fidelity IRA. Because my ex-mega corp had great unitized funds, most of the $ is going to be moved over as cash (vs. in-kind). As a result, I will have that 7-figure $ amount sitting in cash.

While figuring out how to invest it, are there recommendations regarding Fidelity money-market funds?

Thanks.

 

[Dtail]

hey all
i am in the process of moving a 7-figure 401k to fidelity ira. Because my ex-mega corp had great unitized funds, most of the $ is going to be moved over as cash (vs. In-kind). As a result, i will have that 7-figure $ amount sitting in cash.

While figuring out how to invest it, are there recommendations regarding fidelity money-market funds?

Thanks.

fzdxx

 

[audreyh1]

The main core funds are Fidelity Government Cash Reserves FDRXX and Fidelity Government Money Market SPAXX. These are both yielding around 3.3%. Then there is the Fidelity Premium Money Market fund FZDXX which is yielding around 3.8% and has a $10K initial minimum in an IRA. Other than that there are some more specialized/narrow funds such as treasuriy only etc.

 

[copyright1997reloaded]

fzdxx

Thanks.

The main core funds are Fidelity Government Cash Reserves FDRXX and Fidelity Government Money Market SPAXX. These are both yielding around 3.3%. Then there is the Fidelity Premium Money Market fund FZDXX which is yielding around 3.8% and has a $10K initial minimum in an IRA. Other than that there are some more specialized/narrow funds such as treasuriy only etc.

Thanks. I mentioned the 7-figure $ amount because at the point of transfer, I could purchase a fund with a $1,000,000.00 minimum (which I won't be able to do once I start doing a bond ladder and equity purchases.) [It wasn't meant to be a humble brag - I've never had that much cash transfer ever before.]