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

[jazz4cash]

May I ask why you're buying so many of the same duration at the same time? Is there some benefit to doing that vs buying one big one if they will all mature at once anyway?

I had a question about this also. Does 6 13 week tbills mean 6 tbills @ $1k each, or 6 individual purchases, or something else?

 

[jazz4cash]

NASA FCU has done nice CD specials with their usual requirements. I’m currently trying to justify keeping my account open there.


Deal Summary: Share Certificate Specials – 9-month (2.00% APY), 15-month (2.50% APY), 49-month (3.00% APY), minimum $10k deposit of new money, rates guaranteed through June 30, 2022.

 

[almost there]

I have never seen 1,2,3,4,5 year CD's crunched together like this.
Brokerage CD's... (1yr 3.0%) (2yr 3.3%) (3yr 3.4%) (4yr 3.4%)

Am in need of a 1,2,3,and 4yr. for a ladder.
Have been waiting for better rates since March with the cash.
And they have gone up as expected.
Just never expected the rates to all be so close to the 5 year.
And had to mention it to someone. LOL LOL
As my 1 month CDs the cash was in matured today.
Am sure rates will go up a bit, but am thinking about pulling the trigger
as it seems pretty fair as they are all co close now.
A bit of a phenomena.
Thoughts?

 

[copyright1997reloaded]

NASA FCU has done nice CD specials with their usual requirements. I’m currently trying to justify keeping my account open there.


Deal Summary: Share Certificate Specials – 9-month (2.00% APY), 15-month (2.50% APY), 49-month (3.00% APY), minimum $10k deposit of new money, rates guaranteed through June 30, 2022.

Same.
Given the new money requirement, I've been transferring out $ 10K at a time. If they would offer that for existing $ I would do the 9 month specials, but since they don't I will move the money elsewhere.

 

[Car-Guy]

I'm seriously thinking of taking most of the money I've been using for swing trading and creating a 18 to 36 month CD ladder once they hit ~4%, which shouldn't be too long from now.

 

[Chuckanut]

pc95, I am only using about 10% of my cash stash for each CD purchase. Keeping most of it for later when rates are 'supposed to be' higher. But hard to resist the 'bird in hand' opportunity of the 5 year PenFed CD at 3.5%. I have until July 7 to decide. Congratulations on scoring the PenFed 10 year 5%, by the way. I don't even remember that one, lol.

I see this from a total return point of view. If I hold on to cash in an online bank I get about 1% depending on the bank. Meanwhile, as of today, CDs and treasuries are yielding between 1.7 and 3+% for a 3 -12 months duration. I can hold back purchasing them in the hope of getting more interest later, but in the meantime I miss the current higher interest rates of the 3, 6, 9 or 12 month treasuries/CDs. Not so good.

A ladder solves might solve the problem for many people. A 3, 6, 9, 12, 15 and 18 month ladder should work pretty well, though one can stretch it out longer or cut it off earlier if one chooses.

This does not leave a a majority of one's money collecting lower savings account rates for an extended period of time, yet gives the saver the opportunity to earn more assuming the Fed does what it says it will do. I think that is a good assumption, though nothing is cast in concrete.

IMO, the ladder gives people the best chance of capturing a higher level of total return over the next 1-3 years. And if rates go higher than expected, one can extend the ladder out to a longer duration. YMMV.

 

[copyright1997reloaded]

I just wanted to pop in here to thank MichealB for creating and others for contributing to this thread! While I follow the deposit accounts blog, having things posted here helps me to keep up on current deals and considerations.

 

[JoeWras]

Today's 3 month T-Bill auctioned off at 1.78%

https://www.treasurydirect.gov/instit/annceresult/annceresult.htm

 

[almost there]

One catch is they are FDIC insured to $250k. If you have over that, then you need more than one account (to be insured).

After years of shuffling around between banks and credit unions, With too many CD's, I recently went pretty much all in with (1) brokerage on my IRA.
Easy to shop and buy online. Plus there are many, many institutions to choose from. Making it easy so stay under the FDIC max.
I finished my 5 yr ladder today. Could not pass up 3.4% on both 3 and 4 yr CD's. A 9 month at 2.6% and a 1yr. at 3%. Am sure rates will go higher over the summer. But, its good enough for me. Now I can completely forget about it until 3/2023. And see where we are at.

Will probably do the same with the Roth's. Am consolidating from several to a few with shorter terms so they can be combined. (6) are maturing over the next 2 yrs. After that, life will be simplified.

 

[Graybeard]

May I ask why you're buying so many of the same duration at the same time? Is there some benefit to doing that vs buying one big one if they will all mature at once anyway?

My assumption, so take that for what it is worth, is as the Fed raises rates Treasury coupons will rise too so I am sticking with short maturities. I bought a couple of 26 week T bills a month ago but rates may rise a lot in 6 months (or not) and I may be kicking myself for going so long so I want to turn them over in 13 weeks. So I think I am dollar cost averaging in with small amounts each week. I have over $130k in my IRA to put into Treasuries, all of it came from 2 bond funds. I'm trying to not jump into the pond all at once but go in slowly.

 

[Graybeard]

I had a question about this also. Does 6 13 week tbills mean 6 tbills @ $1k each, or 6 individual purchases, or something else?

It is one purchase of 6 $1,000 13 week T bills, they all have the same Cuspid. This may not be the best or it may be a good analogy but it is like buying a CD with $6,000. It will show up on my Vanguard statement as 1 purchase. I am not building a ladder just parking money in my fixed income allocation.

 

[jazz4cash]

Today's 3 month T-Bill auctioned off at 1.78%

https://www.treasurydirect.gov/instit/annceresult/annceresult.htm

But you can buy a secondary that earns 1.97-2.01 at Fidelity right now.

 

[JoeWras]

But you can buy a secondary that earns 1.97-2.01 at Fidelity right now.

On Vanguard, those are maturing a few weeks later. The few tenths might be worth the extra weeks.

 

[jazz4cash]

On Vanguard, those are maturing a few weeks later. The few tenths might be worth the extra weeks.

You are correct….that’s why the rate is higher….it’s actually 4 months to maturity. Vanguard does a better job identifying a range of maturities for their yield table.

 

[Sue J]

DiscoverBank savings account is now at 1.0%.

 

[Montecfo]

Same.
Given the new money requirement, I've been transferring out $ 10K at a time. If they would offer that for existing $ I would do the 9 month specials, but since they don't I will move the money elsewhere.

Ask them to waive it. I did that successfully with them a few years back.

Your money is new in that it is leaving if they don't waive.

 

[audreyh1]

DiscoverBank savings account is now at 1.0%.

Some of my Fidelity MM funds are now exceeding this rate, and the others are very close, so I’ve been shifting back to the brokerages.

 

[ShokWaveRider]

Here are some current MYGA (Ins. Co. CD) Rates for those who care.

 

[Spock]

I have never seen 1,2,3,4,5 year CD's crunched together like this.
Brokerage CD's... (1yr 3.0%) (2yr 3.3%) (3yr 3.4%) (4yr 3.4%)

Am in need of a 1,2,3,and 4yr. for a ladder.
Have been waiting for better rates since March with the cash.
And they have gone up as expected.
Just never expected the rates to all be so close to the 5 year.
And had to mention it to someone. LOL LOL
As my 1 month CDs the cash was in matured today.
Am sure rates will go up a bit, but am thinking about pulling the trigger
as it seems pretty fair as they are all co close now.
A bit of a phenomena.
Thoughts?

The rate compression you're seeing means (to me) that the market is forecasting future rate cuts... so rate increases hit the short end of the curve more than the long end. I'm not expecting be able to get a 5yr CD at 5% unless Powell starts talking like Volker and smoking a cigar.

 

[explanade]

I logged into my Vanguard account, clicked Buy & Sell and clicked "Buy a CD" and then clicked to select my brokerage account (as opposed to a ROTH IRA account that I have with them).

Resulting page is mostly blank in my Safari browser, there is nothing else I can do further.

I don't have any cash in a MM fund in my brokerage account, I just want to browse what they have available first.


Same thing happens if I click "Check rates and bonds" instead of "Buy a CD."

Am I not going through the right sequence to browse the fixed rate investments?

What a PITA.

 

[disneysteve]

I logged into my Vanguard account, clicked Buy & Sell and clicked "Buy a CD" and then clicked to select my brokerage account (as opposed to a ROTH IRA account that I have with them).

Resulting page is mostly blank in my Safari browser, there is nothing else I can do further.

I don't have any cash in a MM fund in my brokerage account, I just want to browse what they have available first.


Same thing happens if I click "Check rates and bonds" instead of "Buy a CD."

Am I not going through the right sequence to browse the fixed rate investments?

What a PITA.

Safari is pretty antiquated. Do it with Firefox. VG doesn’t work well or at all with Safari.

 

[11522914]

Just bought some brokered cds. 1 month at 1.3% and 2 month at 1.9%.

Keeping term really short.

 

[almost there]

The rate compression you're seeing means (to me) that the market is forecasting future rate cuts... so rate increases hit the short end of the curve more than the long end. I'm not expecting be able to get a 5yr CD at 5% unless Powell starts talking like Volker and smoking a cigar.

Agree, as brokered CD's are forward looking, they are the 1st to go up. And the 1st to come down. With credit unions , then banks trailing. Have 7 CD's coming due Jan 2024 thru Aug 2024. Around 475k. Will be interesting to see what rates will be then..
Will probably build a ladder, if we are still in a recession. )

 

[Chuckanut]

Safari is pretty antiquated. Do it with Firefox. VG doesn’t work well or at all with Safari.

Sadly, many websites are made to work with Chrome. Everybody else takes their chances. Why somebody trying to sell me something on the internet would make it difficult to use other popular browsers is beyond me.

 

[Spock]

Agree, as brokered CD's are forward looking, they are the 1st to go up. And the 1st to come down. With credit unions , then banks trailing. Have 7 CD's coming due Jan 2024 thru Aug 2024. Around 475k. Will be interesting to see what rates will be then..
Will probably build a ladder, if we are still in a recession. )

Probably too much of a diversion for this thread
but the scenario of having that much mature in 2024, and if you believe rates will be starting back down before 2024, would have me investigating selling some of that pile and re-buying 5yr-ish durations to lock in rates through 2027ish (or even longer).