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

[erkevin]

I appreciate the calls to break CDs that are "dogs". I just dumped a Marcus CD. I will re-coup the interest penalty in about a month moving to a 4% CD.

[Henry Lili]

Quote:

Originally Posted by DallasGuy I have accounts at several banks as well. I keep a spreadsheet of CD's with maturity dates and have it sorted by maturity date so I can easily see what will be maturing soon....and then setup an email reminder sent to me a few days before something matures. Once a CD matures, I zero it out on the spreadsheet and add a new row for the new CD. That helps me alot.

Same. With a countdown spreadsheet date timer.

[11522914]

Quote:

Originally Posted by jldavid47 I saw that and passed. I just am not comfortable going out that far in time.

I certainly understand which is why I didn't buy much. I kept waffling on whether to do it as clearly, particularly after today's Fed meeting, rates are going to go up at least another point if not more.

I'm going to start building a year ladder in a couple of weeks to allow today's hike to start working.

[COcheesehead]

Fidelity has a fixed income analysis tool. So if you have brokered CDs, bonds, etc, they are all tracked by maturity and call date with email notifications as well as rolling up your total income by month and year. Very valuable tool.

[Seattleite]

Quote:

Originally Posted by Spock Personally I stay away from the "Bank of India" and "Bank of China" brokered CDs of foreign owned banks. Yes they are FDIC insured. For now. I'm laddering out 10 years and the global landscape can change in a month. With the way the world is polarizing today's friend is tomorrows enemy with assets frozen (or seized) and the 'IC' in BRICS countries are playing games with which side they are going to chose. All bets are off when China lands in Taiwan as the administration edicts ways to inflict economic punishment on whatever related entities it can reach. Revoking a banks FDIC status because "it has ties to the CCP" or some such is just a stroke of an executive pen. For me an extra 0.1% is not worth the 'what if' on longer term plans.

If you see a CD offered by State Bank of India it is backed by the Govt of India, Schwab brokers them. In other words it is not a private bank.
I would not invest in a private bank in India.

[audreyh1]

Quote:

Originally Posted by COcheesehead Fidelity has a fixed income analysis tool. So if you have brokered CDs, bonds, etc, they are all tracked by maturity and call date with email notifications as well as rolling up your total income by month and year. Very valuable tool.

Nice, I should check that out!

[erkevin]

Marcus savings up to 2.15%

[Car-Guy]

Schwab just posted 5yr CD's now available at 4.3%... Haven't seen numbers like that in well over a decade.

I really don't want to lock up too much money for 5 years or more, since I think CD rates are going a lot higher in that time frame. I'm thinking of buying a bunch of 6 and 9mo CD's for ~4%, from different banks to stay under the FDIC limits, and then reinvesting at that point for hopefully much higher rates. Just to much cash sitting in my account getting next to nothing right now.

[brucethebroker]

Quote:

Originally Posted by Seattleite If you see a CD offered by State Bank of India it is backed by the Govt of India, Schwab brokers them. In other words it is not a private bank. I would not invest in a private bank in India.

I just double checked at Schwab, both State bank of India and Bank of China brokered CD's are FDIC insured. Now, you can debate how safe the FDIC insurance is if the SHTF, but they ARE showing up on the FDIC list of Schwab offerings. (or perhaps SOME of the CD's offered are not FDIC insured, but the ones I checked were).

[ShokWaveRider]

Quote:

Originally Posted by Car-Guy Schwab just posted 5yr CD's now available at 4.3%... Haven't seen numbers like that in well over a decade. I really don't want to lock up too much money for 5 years or more, since I think CD rates are going a lot higher in that time frame. I'm thinking of buying a bunch of 6 and 9mo CD's for ~4%, from different banks to stay under the FDIC limits, and then reinvesting at that point for hopefully much higher rates. Just to much cash sitting in my account getting next to nothing right now.

Why when 2 year treasuries are 4.xx%

[Car-Guy]

^^^^^
Because I think in less than two years rates will be well over 5% maybe 6+.

[ShokWaveRider]

Quote:

Originally Posted by Car-Guy ^^^^^ Because I think in two years rates will be well over 5% maybe 6+.

My point exactly! Why tying up money for 5 years at 4.3% is a fool's errand now.

[Car-Guy]

Quote:

Originally Posted by ShokWaveRider My point exactly! Why tying up money for 5 years at 4.3% is a fool's errand now.

Sounds like we are in agreement.

[Drake3287]

Some of you forget about the magic of paying early penalty fees! Many times you're still money ahead on these 5 year rates when you end up having to pay get out of of them.

It's funny, I've had CD's all my life and I've never spent more then 2 seconds thinking about early penalty rates or policies. Now it's the first thing I look at.

[Car-Guy]

Quote:

Originally Posted by Drake3287 Some of you forget about the magic of paying early penalty fees! Many times you're still money ahead on these 5 year rates when you end up having to pay get out of of them. It's funny, I've had CD's all my life and I've never spent more then 2 seconds thinking about early penalty rates or policies. Now it's the first thing I look at.

Me too, but then again, I've never cashed out early...

[11522914]

Quote:

Originally Posted by ShokWaveRider My point exactly! Why tying up money for 5 years at 4.3% is a fool's errand now.

I guess that could be said of tying up money in the stock market right now.

[copyright1997reloaded]

Quote:

Originally Posted by Car-Guy Schwab just posted 5yr CD's now available at 4.3%... Haven't seen numbers like that in well over a decade. I really don't want to lock up too much money for 5 years or more, since I think CD rates are going a lot higher in that time frame. I'm thinking of buying a bunch of 6 and 9mo CD's for ~4%, from different banks to stay under the FDIC limits, and then reinvesting at that point for hopefully much higher rates. Just to much cash sitting in my account getting next to nothing right now.

The way rates have been rising, six-months is too long!
(I've been mostly buying six-month T-Bills.) Three months ago (so half way through a six-month T-Bill), the rate was about 2.41%. Today 3.904%. A six month T-Bill maturing now (i.e. purchased 6 months ago) had a yield of 0.95%. Ouch. I made my first 6-month purchase less than a month ago (8/23/22) @ 3.22%. So quite the jump since then.

[Dash man]

I just put some in for Monday’s 13-week T-Bill auction. Early next year I think I’ll start reaching out for more longer term rates.

[pb4uski]

Quote:

Originally Posted by Car-Guy Schwab just posted 5yr CD's now available at 4.3%... Haven't seen numbers like that in well over a decade. I really don't want to lock up too much money for 5 years or more, since I think CD rates are going a lot higher in that time frame. I'm thinking of buying a bunch of 6 and 9mo CD's for ~4%, from different banks to stay under the FDIC limits, and then reinvesting at that point for hopefully much higher rates. Just to much cash sitting in my account getting next to nothing right now.

If I'm going for 5 years I would opt for a 5.25% agency bond over a 4.3% CD. Agency bond is callable, but for an extra 95 bps you are getting well compensated for the call risk IMO.

[Car-Guy]

Quote:

Originally Posted by copyright1997reloaded The way rates have been rising, six-months is too long! (I've been mostly buying six-month T-Bills.) Three months ago (so half way through a six-month T-Bill), the rate was about 2.41%. Today 3.904%. A six month T-Bill maturing now (i.e. purchased 6 months ago) had a yield of 0.95%. Ouch. I made my first 6-month purchase less than a month ago (8/23/22) @ 3.22%. So quite the jump since then.

Well I've been sitting on a lot of cash far to long that's doing nothing... So I've already missed a lot. It's always a bit of a crap shoot but it's time to get in (for me). Sure, I think it's going to keep going up but I don't want to miss another 3, 6 or 9 mo's of getting nothing. So I'm going in shorter term(s) now and probably longer term(s) when these mature. But don't follow me... I'm lost!