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06-22-2022, 06:16 AM
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#741
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Posts: 11,701
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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.
__________________
Retired Class of 2018
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06-22-2022, 06:59 AM
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#742
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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Quote:
Originally Posted by NomDeER
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?
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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.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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06-22-2022, 07:10 AM
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#743
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Thinks s/he gets paid by the post
Join Date: Jul 2013
Posts: 1,877
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Quote:
Originally Posted by kongmen
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.
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Synchrony is at 1.1% today.
I don't know when it was increased, as they don't announce these changes like Ally does.
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06-22-2022, 08:13 AM
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#744
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2016
Location: Northern Virginia
Posts: 7,544
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CFG Bank's HY money market is now at 1.30%. It is certainly much more interesting on the way up.
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06-22-2022, 08:32 AM
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#745
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,002
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Quote:
Originally Posted by Dtail
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.
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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.
Quote:
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.
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That $10K min is higher than I remembered reading. Is your mom holding it in an IRA? IRAs often have different minimums.
__________________
Retired since summer 1999.
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06-22-2022, 08:54 AM
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#746
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,002
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Quote:
Originally Posted by 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.
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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.
__________________
Retired since summer 1999.
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06-22-2022, 09:07 AM
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#747
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Posts: 11,701
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Quote:
Originally Posted by audreyh1
That’s because Treasury Direct doesn’t operate on the secondary market. Makes perfect sense to me. They aren’t trying to be difficult.
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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...sfermarketable
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.
__________________
Retired Class of 2018
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06-22-2022, 09:15 AM
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#748
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,002
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Quote:
Originally Posted by Aerides
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.
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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.
__________________
Retired since summer 1999.
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06-22-2022, 09:18 AM
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#749
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Moderator
Join Date: Nov 2015
Posts: 13,879
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Quote:
Originally Posted by audreyh1
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.
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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"...
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06-22-2022, 09:22 AM
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#750
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,002
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Quote:
Originally Posted by JoeWras
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.
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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.
__________________
Retired since summer 1999.
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06-22-2022, 09:23 AM
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#751
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Posts: 11,701
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Quote:
Originally Posted by Aerides
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"...
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Like the cable company, their FAQs never discuss closing out.
__________________
Retired Class of 2018
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06-22-2022, 10:05 AM
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#752
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
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Bask Bank savings is now at 1.61 percent.
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06-22-2022, 10:16 AM
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#753
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,226
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Quote:
Originally Posted by audreyh1
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.
That $10K min is higher than I remembered reading. Is your mom holding it in an IRA? IRAs often have different minimums.
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Just a regular taxable account and no hint or mention that the balance had to be increased to 10k.
She is a Private Client, so perhaps that gets an exception.
FZDXX now at 1.18%.
__________________
TGIM
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06-22-2022, 10:37 AM
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#754
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Full time employment: Posting here.
Join Date: Sep 2010
Location: Orlando, Fl
Posts: 950
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Quote:
Originally Posted by Another Reader
Bask Bank savings is now at 1.61 percent.
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You beat me to it....well done.
__________________
"Some people describe themselves as being able to see things as a glass half full. For some, the glass is half empty. Me? I can't even find the f***king glass."
Silver
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06-22-2022, 10:56 AM
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#755
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,002
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Quote:
Originally Posted by mrfeh
Synchrony is at 1.1% today.
I don't know when it was increased, as they don't announce these changes like Ally does.
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Definitely an improvement. But I suspect it won’t be long before it reaches 1.5% as 3 month treasuries are now trading above 1.6%
__________________
Retired since summer 1999.
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06-22-2022, 11:46 AM
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#756
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Full time employment: Posting here.
Join Date: Aug 2013
Location: New Jersey
Posts: 908
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PenFed posted their CD special today - 5 year 3.50%
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06-22-2022, 12:04 PM
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#757
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Thinks s/he gets paid by the post
Join Date: Oct 2008
Posts: 2,776
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Quote:
Originally Posted by almost there
Yep, have 5 yr CD's maturing at Navy Jan 2023 and Pen Fed Jan 2024.
Will be interesting what rates will be there / then.
Am thinking Jan 23 will be much higher than Jan 24...Just a guess.
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Someone just posted that PenFed has 3.5% 5 year CDs now. It *seems* to me that rates for 5 and 7 year CDs ought to go up to 5% or higher by June, 2023. But who knows, right? Not biting yet on the 5 year 3.5% Penfed. Hoping for at least 4% for 5 or 7 year CD. Even then, I won't put all my cash in. Hoping for 5%, of course.
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06-22-2022, 12:08 PM
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#758
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Full time employment: Posting here.
Join Date: Oct 2014
Location: Tucson
Posts: 797
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Morgan Stanley has a 5 year CD (callable) at 3.785%
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06-22-2022, 12:19 PM
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#759
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Full time employment: Posting here.
Join Date: May 2011
Posts: 770
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Quote:
Originally Posted by John Galt III
Someone just posted that PenFed has 3.5% 5 year CDs now. It *seems* to me that rates for 5 and 7 year CDs ought to go up to 5% or higher by June, 2023. But who knows, right? Not biting yet on the 5 year 3.5% Penfed. Hoping for at least 4% for 5 or 7 year CD. Even then, I won't put all my cash in. Hoping for 5%, of course.
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I've been waiting for 4% to 5% also. For some reason, even with crazy inflation, I fear we may not get there and I'll miss the boat again. [emoji848]
I'm seriously considering ladders.
10 year Treasury got up to 3.48% about 3 days ago and now down to 3.14%. it's hard to lock in these yields when inflation is 9%.
__________________
you interpret daily life according to your ideas of what is possible or not possible - Seth Speaks
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06-22-2022, 12:21 PM
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#760
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Full time employment: Posting here.
Join Date: Jun 2015
Location: Redmond
Posts: 892
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FZDXX now at 1.18
Marcus base MM 1.0, all in with promos 1.6
8 week Tbill 1.375?
Long story, on the phone with the bond guy, he really could not explain why TD says the yeild is 1.45, but the new issue yield is 1.375 after sale. They swear there is no fee or commission nor spread, its just they method used to calculate, BS....
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