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

[jazz4cash]

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.

 

[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.com/BondCenter/BondDetail.jsp?ticker=C629795

 

[audreyh1]

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.

 

[disneysteve]

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.com/BondCenter/BondDetail.jsp?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?

 

[Chuckanut]

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.

 

[disneysteve]

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.

 

[Freedom56]

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.

 

[disneysteve]

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.

 

[Montecfo]

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.

 

[camfused]

The creeping up continues: viobank MM now at .71%.

 

[frank]

never had treasuries. is there a thread on here that discusses buying and selling them?

 

[disneysteve]

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.com/BondCenter/BondDetail.jsp?ticker=C629795

There must be a glitch on Vanguard's site. When I look up that CUSIP it shows maturity 4/30/22, but when I click on the little "info" icon, it links to the exact same FINRA page as you posted with the same information.


Well that wasn't confusing.

 

[disneysteve]

never had treasuries. is there a thread on here that discusses buying and selling them?

https://www.early-retirement.org/forums/f44/muni-bond-and-muni-bond-fund-discussion-104000.html'
This thread says it's about municipal bonds but they talk about treasuries too. Some super knowledgeable people there. That's what got me into buying them.


Basically, buying treasuries is super easy. I'm with Vanguard. It's just a couple of clicks to pull up a list of current offerings filtered by duration, and then to put in a buy order for what you want. Just the same as buying brokered CDs.

 

[RE2Boys]

never had treasuries. is there a thread on here that discusses buying and selling them?

While there is a very active secondary market for treasuries, I tend to keep simple, almost like dealing with bank CDs. In the last rising rate environment, I purchased new treasuries at auction (1-18 month) to form a ladder and always held to maturity.

 

[jazz4cash]

never had treasuries. is there a thread on here that discusses buying and selling them?

I don’t have any treasuries but it is super easy to navigate the Fidelity bond pages. Vanguard’s is similar. Which brokerage would you be using to buy?

 

[Turbo29]

If you have a brokerage account at any major brokerage, buying Treasuries is as easy or easier than opening another CD at a bank that you already have an existing account at.

 

[jim584672]

Schwab and Vanguard both have bond pages to pick out and place a Treasury order. Very easy to do.

 

[daylatedollarshort]

We've been putting all our cash into short term Treasuries. Might at well make a little money while we wait to buy anything longer until the Fed's planned rate increases top out.

 

[Al18]

PenFed just posted new rates:
3 Year
2.10%

4 Year
2.25%

5 Year
2.50%

7 Year
2.75%

 

[Winemaker]

I went to bank today to correct a double charge for check printing. First charge ever for checks in 20+years. Banking representative looked at our past banking history and bumped all of our accounts up to get more interest, freer checking, and no fees, provided we have a monthly balance over $5000. not a problem, we have $4600 in tenant's security deposits alone.

 

[Another Reader]

Six figure balance plus the mortgage and Wells Fargo charges for everything...

 

[audreyh1]

never had treasuries. is there a thread on here that discusses buying and selling them?

Fidelity makes them easy to buy at govt auction no fee including rolling them over for you automatically.

 

[Another Reader]

Fidelity makes them easy to buy at govt auction no fee including rolling them over for you automatically.

You can choose to roll them over or the money comes back to you at maturity. When they paid higher interest, I usually had between five and ten going at once with different maturities.

 

[frank]

vanguard. I thought i-bonds had a 10000 maximum or is that yearly?

 

[jazz4cash]

vanguard. I thought i-bonds had a 10000 maximum or is that yearly?

The ibond has a 10k per year max and the rate adjusts every 6 months for inflation. They can only be bought and sold on the Treasury Direct website. We have a long thread here on the topic.

The term treasuries usually refers to securities with 1 month to 30 yr maturities. They are very easy to buy or sell from any broker. The initial rate is set by auction when they are issued. That rate is fixed but the principal value of the security will adjust according to the market (supply, demand, inflation, etc).