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

[audreyh1]

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]

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]

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]

^^^^^
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]

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]

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]

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]

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]

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]

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!

 

[Trailwalker]

I've been laddering 6 months and 12 months. When the six months come due, I will start the 2 year part of the ladder. That's the plan--written in jello.

 

[Car-Guy]

I've been laddering 6 months and 12 months. When the six months come due, I will start the 2 year part of the ladder. That's the plan--written in jello.

I could have written that!

 

[disneysteve]

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.

It's all a crap shoot but I'm a proponent of the mindset "Never let the perfect be the enemy of the good". That's the big value of laddering.

My mom had 2 CDs mature at the end of August. They were earning 0.6%. I moved the money to her Vanguard account (it was in Ally) and bought her 3, 6, 9, and 12-month T bills instead earning between 2.9 and 3.4%. Is it the best she could possibly do? No. But it's 5-6 times better than what she had been getting on that money. And every 3 months, a chunk of it will mature and can be redeployed into a new 12-month bill at the prevailing rate. I'm okay with that.

And I just realized this is the CD thread but the exact same plan works for CDs too.

 

[Montecfo]

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!

Yes. In fact it is lot like equities. You need to stay fully invested. Very hard for rates to rise enough to make up for zeros.

 

[disneysteve]

Ally up to 2.1%

 

[Golden sunsets]

Ivy Bank up to 2.7%

 

[Dave J]

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!

Any reason you are not in an online savings account, paying maybe 2% or a little more now? Not much, but better than nothing.

 

[11522914]

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.

I've mostly been buying 3 months or less T-Bills. I bought a very few 4,5 and 10 year CDs, Agency and Corporate Bonds but right now that is only 4.5% of my income earning assets so I still have 95.5% to invest.

On the longer term I have been mainly investing in non-callable as I hate the interest rates drop I lose-you win but as you know it doesn't appear rates will be dropping anytime soon.

I'm having a hard time deciding when to really start investing in longer term. I'm really waiting for a corporate bond crash a la March 2020. Learned about that from Freedom56. And some preferred financials are getting tempting.

 

[PatrickA5]

Ally up to 2.1%

I moved $10 into my Ally Money Market account just to make sure it doesn't get closed (I've had a zero balance for months). At some point my money market fund at Fidelity will drop (quickly?), so might as well have an open Ally account just in case.

I don't have enough cash available to make any of this worth much, but next year we will start taking distributions and at that point we will take a closer look at what's available.

 

[jazz4cash]

Why when 2 year treasuries are 4.xx%

It could be logical if you have a need that is five years out and you believe the rate cycle may peak in 2 yrs. Rates to reinvest those 2 yr maturities could be lower than today’s rates.

My ladder has a rung that is 5 yrs out and i need to put something there.