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

[JoeWras]

After dealing with a three hour and 20 minute wait to get my TD account unlocked, I decided to make future Treasury security purchases via a brokerage, probably Fidelity.

Chuckanut, me too. It was surprisingly easy at Vanguard, and from what I hear, the same at Fidelity.

I'm going to back off using TD because that web site has so many problems...

 

[jim584672]

That Treasury Direct site is so lame. Every time I see TD I think TDAmeritrade. Being in a brokerage is so much easier.

 

[audreyh1]

FZDXX is a premium fund class, so it has $100k minimum. By any chance does anyone know what happens if you're in the fund but one day spend enough money buying stocks that your balance in the fund goes under the minimum? Just wondering if it automatically reverts to the lower class fund rate or if there's a fee or nagging emails from Fido, etc.

You can go much lower than the initial buy in. I do all the time. The retention minimum is something like $5,000 or maybe a little lower.

And if you go below that I think you do get nagged by Fidelity and have a chance to rectify.

 

[gromit]

You can go much lower than the initial buy in. I do all the time. The retention minimum is something like $5,000 or maybe a little lower.

And if you go below that I think you do get nagged by Fidelity and have a chance to rectify.

Thanks. I'm currrently in the Fidelity Government Money Market Fund (SPAXX) and will look into the premium version.

 

[Dtail]

You can go much lower than the initial buy in. I do all the time. The retention minimum is something like $5,000 or maybe a little lower.

And if you go below that I think you do get nagged by Fidelity and have a chance to rectify.

Actually there is no minimum, once you establish the original 100k.
I know in that my mom has an account with less than 1k balance and is receiving the premium rate.

 

[Aerides]

For those with Ally No Penalty CD's - any luck calling and getting your rate raised?

I was told I have to create a whole separate account that they can settle to first, and they can't just close/open new, and that they can't just bump my rate....

Did I get a twit or is there an easier way to do this?

 

[Earl E Retyre]

For those with Ally No Penalty CD's - any luck calling and getting your rate raised?

I was told I have to create a whole separate account that they can settle to first, and they can't just close/open new, and that they can't just bump my rate....

Did I get a twit or is there an easier way to do this?

I have never tried calling. I have a savings and checking account with Ally. So, whenever the No Penalty CD changes rate, I simply do an early withdraw and transfer funds to one of those accounts and then immediately reopen a new CD. It literally takes a minute. If you are saying you only have a CD and no other Ally accounts then you might want to open a checking or savings account with $5 to do so.

 

[JoeWras]

For those with Ally No Penalty CD's - any luck calling and getting your rate raised?

I was told I have to create a whole separate account that they can settle to first, and they can't just close/open new, and that they can't just bump my rate....

Did I get a twit or is there an easier way to do this?

I don't think you got a twit.

This business of closing it is why I earlier discussed the idea of closing down my ladder because that undoes some work of building accounts on a staggered date basis.

I'm not sure what you mean about a new account to settle to, so maybe there is a twit on the phone. You close to your money market fund. It settles immediately.. Just a click of the mouse. Then you can open a new CD. Or in my case I transferred out to Vanguard and opened up a T-bill.

 

[Aerides]

I don't think you got a twit.

This business of closing it is why I earlier discussed the idea of closing down my ladder because that undoes some work of building accounts on a staggered date basis.

I'm not sure what you mean about a new account to settle to, so maybe there is a twit on the phone. You close to your money market fund. It settles immediately.. Just a click of the mouse. Then you can open a new CD. Or in my case I transferred out to Vanguard and opened up a T-bill.

Thanks, but all I have with them is the one CD account. I don't have a money market. I guess I'll go close it, put it in my back, and them open another in a day... as it took 12 mins on hold, then a person, then another 10 mins on hold, then a terrible broken up line where I could barely understand them let alone make sense of it.

 

[Graybeard]

For those with Ally No Penalty CD's - any luck calling and getting your rate raised?

I was told I have to create a whole separate account that they can settle to first, and they can't just close/open new, and that they can't just bump my rate....

Did I get a twit or is there an easier way to do this?

I've had many Ally CDs. You only get a bump in the rate within 10 days of opening the CD. After that, you need to close the NP CD and open a new one to get a higher rate. Ally has a "Raise MY Rate CD" but IIRC those are 2 or 4 years and almost assuredly have an early termination penalty.

 

[JoeWras]

Thanks, but all I have with them is the one CD account. I don't have a money market. I guess I'll go close it, put it in my back, and them open another in a day... as it took 12 mins on hold, then a person, then another 10 mins on hold, then a terrible broken up line where I could barely understand them let alone make sense of it.

Ah, I see. No other account with them.

A lot of people are doing what you are. Just a few weeks ago, their wait queue meter would typically show 0 to 5 minutes. Now it's routinely over 20.

 

[Momcpa]

Just opened a 2.5% CD at a local credit union today. It's a 24 month term and you can bump up the rate one time during that 24 months if interest increases.

 

[NomDeER]

Yes the liquidity at Fidelity is incredible. I have submitted a transfer request from my B&M bank to Fido and immediately had access to trade with those funds before they ever left my bank. I never knew how other brokerages handle transfers.

Vanguard apparently is the same.

I've got a question about timing. How long after the Fed increases interest rates is that reflected in the interest rates for the treasuries being auctioned?

 

[JoeWras]

Vanguard apparently is the same.

I've got a question about timing. How long after the Fed increases interest rates is that reflected in the interest rates for the treasuries being auctioned?

It doesn't work that way. It isn't a step function that adds the Fed rate.

Sometimes the treasury products start rising before the rate increase is announced because the Fed governors are sending out hints ahead of the actual rate increase.

That's why it is an auction. The market determines the rate. The Fed rates are just part of a greater calculus. Of course the Fed rate is the big hammer in the market's rate calculus.

 

[Aerides]

I've had many Ally CDs. You only get a bump in the rate within 10 days of opening the CD. After that, you need to close the NP CD and open a new one to get a higher rate. Ally has a "Raise MY Rate CD" but IIRC those are 2 or 4 years and almost assuredly have an early termination penalty.

Ah, I see. No other account with them.

A lot of people are doing what you are. Just a few weeks ago, their wait queue meter would typically show 0 to 5 minutes. Now it's routinely over 20.

Thanks. Of course, Ally's "create a new account" feature is currently unavailable, (temporary failure)... I'll keep trying, at least it should shave off the 3-5 days and round trip if I deposit in my other online bank savings...but I get almost as much there now, so I might not bother after this fiasco!

 

[JoeWras]

One other thing about buying Treasuries at Vanguard or Fidelity: you increase your liquidity.

Treasury products at Treasury Direct (except savings bonds) need to be transferred to a brokerage in order to sell them. In true Treasury Direct fashion, it isn't easy.

 

[jazz4cash]

Vanguard apparently is the same.



I've got a question about timing. How long after the Fed increases interest rates is that reflected in the interest rates for the treasuries being auctioned?

There is no set formula for how the market reacts. Rates are already rising in anticipation of the most recent hike which does not take effect until July.

 

[mrfeh]

I just opened my account with Synchrony at .85 I'm hoping they will increase soon along with the other online banks in response to the latest 75 basis point increase by the Fed.

Synchrony is at 1.1% today.

I don't know when it was increased, as they don't announce these changes like Ally does.

 

[Montecfo]

CFG Bank's HY money market is now at 1.30%. It is certainly much more interesting on the way up.

 

[audreyh1]

Actually there is no minimum, once you establish the original 100k.
I know in that my mom has an account with less than 1k balance and is receiving the premium rate.

I carefully read through the prospectus a few years ago and thought I read maybe $2K and what they would do when you went under, which meant basically nagging you for a couple of months to bring it above that min before closing it.

So I suppose things have changed….

Well I found this under Policies in the current prospectus.

If your fund balance falls below $10,000 worth of shares for any reason and you do not increase your balance, Fidelity may sell all of your shares and send the proceeds to you after providing you with at least 30 days' notice to reestablish the minimum balance. Your shares will be sold at the NAV, minus any applicable shareholder fees, on the day Fidelity closes your fund position. Certain fund positions are not subject to these balance requirements and will not be closed for failure to maintain a minimum balance.

That $10K min is higher than I remembered reading. Is your mom holding it in an IRA? IRAs often have different minimums.

 

[audreyh1]

One other thing about buying Treasuries at Vanguard or Fidelity: you increase your liquidity.

Treasury products at Treasury Direct (except savings bonds) need to be transferred to a brokerage in order to sell them. In true Treasury Direct fashion, it isn't easy.

That’s because Treasury Direct doesn’t operate on the secondary market. Makes perfect sense to me. They aren’t trying to be difficult.

If you hold to maturity your money will be returned directly to you. No selling involved.

 

[JoeWras]

That’s because Treasury Direct doesn’t operate on the secondary market. Makes perfect sense to me. They aren’t trying to be difficult.

What I mean by "being difficult" is that in the event you do have to transfer to a brokerage, it will be a difficult administrative process, because every administrative process with Treasury Direct is difficult. I once just poked around to see what it would take to transfer out and got a headache. You will have to submit a medallion guaranteed paper form. The process will take a while. Instructions here: https://www.treasurydirect.gov/indiv/help/TDHelp/howdoi.htm#transfermarketable

I don't plan on selling, but one never knows. Examples would be: a sudden deal on a house comes into play which requires cash, or you die and your estate administrators have an extra hurdle of administrative tasks to liquidate your long holdings.

 

[audreyh1]

Thanks, but all I have with them is the one CD account. I don't have a money market. I guess I'll go close it, put it in my back, and them open another in a day... as it took 12 mins on hold, then a person, then another 10 mins on hold, then a terrible broken up line where I could barely understand them let alone make sense of it.

I have a savings and checking account with Ally. I’ve always done the early withdrawal close, and reopen a new no penalty. It’s virtually instantaneous.

I added the checking account later simply due to the limited withdrawals per statement cycle allowed on a savings account. Ally may have increased the monthly limit since the Fed dropped the limit.

 

[Aerides]

I have a savings and checking account with Ally. I’ve always done the early withdrawal close, and reopen a new no penalty. It’s virtually instantaneous.

I added the checking account later simply due to the limited withdrawals per statement cycle allowed on a savings account. Ally may have increased the monthly limit since the Fed dropped the limit.

Yes, it finally worked, but was error-ing out multiple times. It was far quicker once I got that done than the phone side. It really should have been in their FAQs "want to close early? Do this"...

 

[audreyh1]

What I mean by "being difficult" is that in the event you do have to transfer to a brokerage, it will be a difficult administrative process, because every administrative process with Treasury Direct is difficult.

I don't plan on selling, but one never knows. A sudden deal on a house comes into play, or say you die and your estate administrators have an extra hurdle.

Your original point was a good one: if you think you might sell your treasuries on the secondary market, then buy them though a broker in the first place.

I bought my treasuries through my broker in the first place because they make it seamless and convenient to do, especially the autoroll feature. I’ve never sold my treasuries.

I only use Treasury direct for iBond purchases, and that has been straightforward enough, fortunately. Redemption after the one year minimum holding period is very straightforward, and partial redemption is supported. You have to download the 1099-INT the next year. They may have emailed a notice, I don’t remember.