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

[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.

Has anyone opened an account with this institution for these rates?

Or have had accounts with them in the past?

 

[Graybeard]

Is there a limit on how much in Treasuries you could buy at a time?

Do those Treasury Direct accounts just give you the interest at maturity and you can get the principal and interest transferred back to a bank account by ACH?

IIRC it is $5M.

ETA - that might be a Vanguard restriction.

 

[audreyh1]

I posted this for the CD buyers.

CD buyers become treasury buyers under these circumstances!

 

[explanade]

Are treasuries tax free?

Fed tax free but not state tax free?

 

[audreyh1]

Do those Treasury Direct accounts just give you the interest at maturity and you can get the principal and interest transferred back to a bank account by ACH?

For the bills (short term) you buy a $1000 treasury for something less than $1000, then get $1000 back at maturity. The difference is your interest earned. These are “zero coupon”.

Treasury Direct would pull something less than $1000 from your bank account, then return $1000 when the bill matures.

Interest from treasuries is subject to federal income tax.

 

[explanade]

IIRC it is $5M.

ETA - that might be a Vanguard restriction.

Does VG let you buy and hold treasuries in VG accounts?

 

[jazz4cash]

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

Does VG let you buy and hold treasuries in VG accounts?

Yes.
Edit: Yes for Treasury bills, notes, and bonds. No for iBonds.

 

[Out-to-Lunch]

Are treasuries tax free?

Fed tax free but not state tax free?

The opposite. Subject to Fed tax, but free of state tax.

 

[almost there]

Is there any advantage to Treasuries? Same 1 yr brokered CD is at 2.1%
Thanks

 

[Jenna]

Capital One online has a 6 month for 1.75% , no minimim

 

[Earl E Retyre]

I just canceled all my Ally No Penalty CDs at .55% and reopened them at .70%. Takes a second.

 

[John Galt III]

Is this link more helpful? It shows the rates, day by day:

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202205

Yes, thanks, Linney.

 

[Eucerin]

For the bills (short term) you buy a $1000 treasury for something less than $1000, then get $1000 back at maturity. The difference is your interest earned. These are “zero coupon”.

I am trying to understand above statement. For example, I bought $1,000 1month treasury bill at rate 0.50%, the price was $985. At end of month, I will get $1,000 back plus the interest which was 0.5%, am I right? in the end, the total amount should be slightly above $1,000, it could be $1,010 (example only) - principle+interest

 

[pb4uski]

Is there any advantage to Treasuries? Same 1 yr brokered CD is at 2.1%
Thanks

IMO UST and brokered CDs are functionally equivalent.... both are full faith and credit/credit risk-free and have interest rate risk unless held to maturity.

 

[pb4uski]

I am trying to understand above statement. For example, I bought $1,000 1month treasury bill at rate 0.50%, the price was $985. At end of month, I will get $1,000 back plus the interest which was 0.5%, am I right? in the end, the total amount should be slightly above $1,000, it could be $1,010 (example only) - principle+interest

Do you mean 1-year treasury bill rather than 1-month treasury bill? If you buy a $1,000 t-bill for $985 then you'll get 1.5% interest ($15/$985). 1.5% for a year would be good, 1.5% for a month would be crazy good so I'm guessing that you bought a 1-year t-bill.

With a t-bill you do not get interest... only face value.

Unlike Treasury bonds and notes, T-bills do not pay periodic interest payments to investors. Instead, Treasury bills are auctioned off to investors at a discount to their face value. The investor's return is the difference between the face value and the discount price paid at purchase.

 

[lawman]

.

With a t-bill you do not get interest... only face value.

So when I go to Schwab's bond offering page and click on "Treasuries" I assume those are bonds..It that correct? Some of those are selling above $100.00 and some less than $100.00

I assume zero treasuries are t-bills .correct?

 

[pb4uski]

You are way overthinking it. Just focus on remaining term and yield to maturity.

 

[Eucerin]

Do you mean 1-year treasury bill rather than 1-month treasury bill? If you buy a $1,000 t-bill for $985 then you'll get 1.5% interest ($15/$985). 1.5% for a year would be good, 1.5% for a month would be crazy good so I'm guessing that you bought a 1-year t-bill.

With a t-bill you do not get interest... only face value.

I understand now. Thank You!

 

[audreyh1]

I am trying to understand above statement. For example, I bought $1,000 1month treasury bill at rate 0.50%, the price was $985. At end of month, I will get $1,000 back plus the interest which was 0.5%, am I right? in the end, the total amount should be slightly above $1,000, it could be $1,010 (example only) - principle+interest

No, you get $1000 back. The difference between $985 and $1000 is your interest payment.

 

[4legsgood]

CIT savings .9 but not applied to old accounts

CIT Bank has a new savings account type, 'Savings Connect', .9 APY. Unfortunately they didn't bump the old savings account rate so you have to open a new one (and also checking account) but easy to do all online. They did bump existing money market accounts to .7 APY.

 

[explanade]

I see that Fidelity seems to offer Treasury instruments.

But are you paying fees or commissions? Or buying them at higher prices than buying through Treasury Direct?

My understanding is you can only get auction prices with a TD account? So when you buy them through a brokerage, are these secondary market prices?

I saw one instrument which has a 1-year maturity but the price was over $100 while the rest was under $100 and the yield was supposedly over 2.1%.

 

[Eucerin]

No, you get $1000 back. The difference between $985 and $1000 is your interest payment.

It took me awhile to understand "face value", thank you for clarify

 

[pb4uski]

... I saw one instrument which has a 1-year maturity but the price was over $100 while the rest was under $100 and the yield was supposedly over 2.1%.

That 2.1% for 12-month sounds about right.... I was looking at a 12-month CD today that was 2.04%.

 

[ShokWaveRider]

5 Year MYGAs reached 4.05% today. B++ companies but.

 

[audreyh1]

I see that Fidelity seems to offer Treasury instruments.

But are you paying fees or commissions? Or buying them at higher prices than buying through Treasury Direct?

My understanding is you can only get auction prices with a TD account? So when you buy them through a brokerage, are these secondary market prices?

I saw one instrument which has a 1-year maturity but the price was over $100 while the rest was under $100 and the yield was supposedly over 2.1%.

Compared to Treasury Direct - no, you are getting exactly the same auction prices plus the auto roll option. Fidelity is buying them for you at each auction and not charging extra. These are at a set time and day each week.
You can see upcoming auctions and results here: https://www.treasurydirect.gov/instit/instit.htm?upcoming

On the secondary market, any Fidelity commission or fees is part of the buy/sell spread and they trade continually during regular bond market hours.