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

[explanade]

Many experts think so. And well into 2023 with .25 and .50 rate hikes.
Lots has been written about it. Some say 7 hikes in 2022 and 3 to 4 in 2023.
But nobody really knows... Too much $$$ was printed in 2021 at 0%. So here we are.
With a drastically devalued dollar, but they like to pin it (inflation) on many many other things.
Anything but that. LOL LOL
Just my 2. Worth what you paid for it.

So why are people looking to lock into 3 or 5 year CDs now?

BTW, the dollar has appreciated in the past year. It was around $1.22 for a Euro in May of last year, currently around $1.05.

https://www.xe.com/currencycharts/?from=EUR&to=USD


Just returned from a 2-3 week trip to Portugal and the exchange range went from almost $1.10 to around $1.05 while I was there.

I guess if the Fed keeps raising rates, the exchange rate vs. other currencies should decline as well, unless their banks are also raising rates aggressively.

 

[Spock]

One thing that appears different to me this time is that while brokered CD rates are raising, a lot of the top rates on longer durations (5 years) are callable CDs while the non-callable rates are .25% and sometimes .5% lower.
This lines up with the expectation that the fed will be lowering rates again sooner than later.

 

[John Galt III]

I am afraid they will back off the interest rate hikes if the economy slows down too much, to keep the Wall Street Bros happy, and maybe even lower them again, so I plan to put some of my cash into 3% 5 year CD's if and when PenFed offers that deal. And then hope for better deals as time goes on.

 

[Dtail]

I am afraid they will back off the interest rate hikes if the economy slows down too much, to keep the Wall Street Bros happy, and maybe even lower them again, so I plan to put some of my cash into 3% 5 year CD's if and when PenFed offers that deal. And then hope for better deals as time goes on.

Agree generically with you that rates might not go as high as expected.
Why wait for Penfed for 3% 5 yr rates, when others are already providing those rates?

 

[jazz4cash]

One thing that appears different to me this time is that while brokered CD rates are raising, a lot of the top rates on longer durations (5 years) are callable CDs while the non-callable rates are .25% and sometimes .5% lower.
This lines up with the expectation that the fed will be lowering rates again sooner than later.

+1
I was noticing the same and could not recall brokered CDs being callable in the past. I haven’t bought any so I wasn’t sure if it was typical. MYGAs seem to be a bit better right now.

 

[jazz4cash]

I am afraid they will back off the interest rate hikes if the economy slows down too much,

Isn’t that what they are supposed to do? Whether it makes Wall St bros happy or not, continuing to raise rates when the economy is slowing and inflation is in target range would be awful for everyone.

 

[jazz4cash]

I plan to put some of my cash into 3% 5 year CD's if and when PenFed offers that deal. And then hope for better deals as time goes on.

If and when? Good luck with that! Penfed is at 2.5 now so maybe by year end…….Not sure what those funds are earning now but I think I’d buy a small stake now rather than waiting for something that may never happen.

 

[almost there]

+1
I was noticing the same and could not recall brokered CDs being callable in the past. I haven’t bought any so I wasn’t sure if it was typical. MYGAs seem to be a bit better right now.

Have had several brokered CD's over the years at Schwab. All Non-Callable.
Most all of the ones there I am looking now are all Non-Callable.
3.2% 5yr now available is Non-Callable. 2.9% 2 yr Non-Callable.
But I do check 1st. Its easy to see. (Call / Put / Sink Features) Callable or Non-Callable

 

[explanade]

Isn’t that what they are supposed to do? Whether it makes Wall St bros happy or not, continuing to raise rates when the economy is slowing and inflation is in target range would be awful for everyone.

There was one report of one indicator saying inflation may have already peaked.

But there are predictions of various component shortages expected to last for at least another year.

And as long as oil remains high but demand hasn't declined that much, it seems it would be hard to push inflation down.

 

[jim584672]

If and when? Good luck with that! Penfed is at 2.5 now so maybe by year end…….Not sure what those funds are earning now but I think I’d buy a small stake now rather than waiting for something that may never happen.

PenFed has had some brutal early withdrawal penalties in the past. Brokered CDs have market risk, depending on what rates do, that can be good or bad.

 

[jazz4cash]

Have had several brokered CD's over the years at Schwab. All Non-Callable.
Most all of the ones there I am looking now are all Non-Callable.
3.2% 5yr now available is Non-Callable. 2.9% 2 yr Non-Callable.
But I do check 1st. Its easy to see. (Call / Put / Sink Features) Callable or Non-Callable

Fido and Vanguard also showing 3.2 for 5 yrs non-callable but Fido also offers 3.35 non-callable. Not really worth the risk for only of a call for only .15% IMO.

 

[ShokWaveRider]

I am afraid they will back off the interest rate hikes if the economy slows down too much, to keep the Wall Street Bros happy, and maybe even lower them again, so I plan to put some of my cash into 3% 5 year CD's if and when PenFed offers that deal. And then hope for better deals as time goes on.

John look at 5 Year MYGAs currently at 3.85% with A rated companies. Your state may even insure them up to $250k.

https://www.blueprintincome.com/

 

[John Galt III]

Agree generically with you that rates might not go as high as expected.
Why wait for Penfed for 3% 5 yr rates, when others are already providing those rates?

Thanks. Yes, someone upthread mentioned Commerce FCU with 2.99% for 48 month CD. Might have to go that route.

I was just hoping to not have to set up yet another account, ha ha. Already have several.

 

[Dtail]

Thanks. Yes, someone upthread mentioned Commerce FCU with 2.99% for 48 month CD. Might have to go that route.

I was just hoping to not have to set up yet another account, ha ha. Already have several.

Understand that, but could be a one shot yield upswing for a somewhat limited timetable.

 

[John Galt III]

Isn’t that what they are supposed to do? Whether it makes Wall St bros happy or not, continuing to raise rates when the economy is slowing and inflation is in target range would be awful for everyone.

They might back off the rate hikes even if inflation is still high, if the economy is faltering badly enough, no ?

 

[John Galt III]

Understand that, but could be a one shot yield upswing for a somewhat limited timetable.

Agreed !!

 

[Dtail]

Agreed !!

I am not familiar with the Vanguard site, but am very familiar with Fidelity and their site.
It is logical and very easy to use. Their brokered CD rates are very competitive, as having access to many corporations.

 

[jazz4cash]

They might back off the rate hikes even if inflation is still high, if the economy is faltering badly enough, no ?

Usually inflation is not a problem if the economy is faltering. It’s possible…stagflation.

 

[GenXguy]

Inflation is always a problem. So, hopefully they'll keep ramping up those rates to deal with it.

 

[explanade]

Per Deposit Accounts, Department of Commerce FCU has some attractive rates. Membership is now open to all per Deposit Accounts. 12-23 month CD's at 2.12 percent. 48 month at 2.99.

Wow, how are they so high?


Are they reliable or like some banks which offered high rates but I think the FDIC had to take them over?


Seems like one of the best-regarded is Alliant FCU in Chicago.

Their rates are good, but not quite as good, 1.24% for 12-17 months, 1.74 for 18-23 months. Their 60 months is 2.23%.

https://www.alliantcreditunion.org/bank/credit-union-certificate#rates

 

[gcgang]

Wow, how are they so high?


Are they reliable or like some banks which offered high rates but I think the FDIC had to take them over?


Seems like one of the best-regarded is Alliant FCU in Chicago.

Their rates are good, but not quite as good, 1.24% for 12-17 months, 1.74 for 18-23 months. Their 60 months is 2.23%.

https://www.alliantcreditunion.org/bank/credit-union-certificate#rates

Why wouldn’t you just buy Treasuries? Safer, more liquid, and higher rates right now.

1 yr =1.99%
2 yr = 2.61%
5 yr= 2.99%.

https://www.barchart.com/economy/interest-rates

 

[almost there]

They might back off the rate hikes even if inflation is still high, if the economy is faltering badly enough, no ?

The fed is far behind the curve. And will probably continue lowering rates when most think it's over. Just to make sure they don't screw up again...Like last year. Printing, 0%, and giving it away.

Most banks and credit unions are flush with cash. They will wait till they need cash to raise rates to realistic levels. Making bank with huge spreads. By that time brokered CD's will be dropping and things cross over in favor of credit unions.
As Brokered CD's are forward looking in both directions.

"In the long-term, the United States Fed Funds Rate is projected to trend around 3.25 percent in 2023 and 3.50 percent in 2024, according to our econometric models." And here we are today at .75%
We have a long way to go. And the fed is just getting started.

Last week Brokered CD's have been about 3% on 2, 3, 4 yr and 3.20% on 5 yr. And are holding there for now.
Waiting a bit, then will start loading up around 3.5%

Just my take on things. Could 100% right. Or wrong. lol lol

 

[pb4uski]

Thanks. Yes, someone upthread mentioned Commerce FCU with 2.99% for 48 month CD. Might have to go that route.

I was just hoping to not have to set up yet another account, ha ha. Already have several.

You can avoid another account by just buying a 4 year brokered at your broker and you'll get more than 2.99%... 3.10% for the 3-year and 3.35% for the 5-year.

 

[ownyourfuture]

Why wouldn’t you just buy Treasuries? Safer, more liquid, and higher rates right now.

1 yr =1.99%
2 yr = 2.61%
5 yr= 2.99%.

https://www.barchart.com/economy/interest-rates

That's certainly tempting. Unfortunately, I know nothing about purchasing treasuries. I better get to work. Thanks for the link.

 

[almost there]

Typo:
The fed is far behind the curve. And will probably continue "lowering" rates when most think it's over. Should have been "raising" rates...