Best CD, MM Rates & Bank Special Deals Thread 2023 - Please post updates here

[jldavid47]

Available this morning on Schwab:

46593LV63 - JP Morgan Chase Bank OH 5.45% CD 06/17/2024 Callable
949764AG9 - Wells Fargo Bank, Nt SD 5.25% CD 03/15/2024
61690U3B4 - Morgan Stanley Bank, UT 5.25% CD 03/15/2024

There are more non-callables in the 18-24 month range at 5.25% and some callables as high as 5.5% for 2 years.

 

[Montecfo]

New CD (DSN371986) - Fidelity has 5.4% 03/17/2023 settlement (Callable starting 03/17/2024, 1 Year) 10-Year Celtic Bank

New CD (CCDCHN2) - ML has 5.5% (Callable starting 06/17/2023, 3 Months) 2-Year JPM

10 year CD but you are just begging them to give your money back in a worse market. I have heard people say "that's fine, I will find something good to buy then". Sure, but you will be in a different market, by definition, with lower rates.

No, thank you.

 

[Montecfo]

Yes, the war on savers is over (or so it seems).

My assets do not have to keep up with inflation. My income does. Our income last year rose several multiples of the inflation rate even at 2-4% interest rates even if our asset growth was flat. This year income growth will be even better (on a nominal basis) given 4-5% interest at a minimum.

jldavid47, are you all in bonds? Not sure why you would call it a war on savers if you are mostly in equities (as most of us seem to be).

The higher rates are kind of a war on equities if you want to use that terminology. Virtually every time Fed speaks stocks fall.

 

[imbatman]

I'm not buying these, just sharing for purposes of market direction. Honestly my alternate approach was I bought a small position of 6.64% 15-year callable agencies instead. With my state/local tax rate, worth a bump more than that and still 2% more than my MM fund in the short-term until they are called. Sure, if rates go up to 7% then I lose, but if they go that high, this is just a small laddered position and we will have bigger problems at those rates ha.

 

[ShokWaveRider]

Logged on to Schwab this morning. ~5.25% seems more common now and ~5.5% for Callable. Life is getting interesting. I think they may be anticipating a 50bps hike in a couple of weeks.

While on the subject of Schwab, I had a long chat with a rep yesterday. He said, and he double checked, that one could buy a CD without any funds in their "Sweep" account, and as long as you do have funds by the settlement date all will be OK. So, if one buys a new issue CD and the settlement date is say 2 weeks away, as long as one has sold their prime MM fund by the day before the settlement date, all would be good. That saves putting funds into their low yield sweep account and missing out on a couple of weeks interest.

 

[Golden sunsets]

Ivy Savings Bank just introduced what they are calling an "Indexed Savings Account". It will automatically adjust on the first of each month to the 1 month T Bill rate, which is currently 4.75%. We have been placing our emergency fund money at Ivy Bank for the past 9 months or so in their "High Yield Savings Account" and most recently have been receiving a 4.25%. That account is still offerred. In the past that rate has been aggressively adjusted to be in the rate range offered by the most competitive banks. It will be interesting to see if they continue to be as aggressive with their HY rate, now that they are offering the Index Savings Account. At any rate the Customer Rep just changed the designation on our account to Index, so that we will receive the 4.75%. We could maintain both and just move the money back and forth depending on which has the better rate. But again the rep said all we would have to do is call in to change it back to the HY type of account.

PS They have been an easy bank to deal with. Their online platform works well and their transfer in and out timing is good. Ivy's B&M sister is Cambridge Savings Bank.

 

[Surewhitey]

Yes, the war on savers is over (or so it seems).

My assets do not have to keep up with inflation. My income does. Our income last year rose several multiples of the inflation rate even at 2-4% interest rates even if our asset growth was flat. This year income growth will be even better (on a nominal basis) given 4-5% interest at a minimum.

+1 DW just got another 2% raise (another just 6 months ago @ 4%), 8.5% profit sharing and a 20+% bonus. Our spending went up $6k YOY mainly due to 3 weeks in Italy...I'll take it. We've also averaged in on 4.8% CD's as of late and plan on locking in 4-5 yr CD's from here going forward except for the 401k's in VTI type funds.

 

[dmpi]

While on the subject of Schwab, I had a long chat with a rep yesterday. He said, and he double checked, that one could buy a CD without any funds in their "Sweep" account, and as long as you do have funds by the settlement date all will be OK. So, if one buys a new issue CD and the settlement date is say 2 weeks away, as long as one has sold their prime MM fund by the day before the settlement date, all would be good. That saves putting funds into their low yield sweep account and missing out on a couple of weeks interest.

Schwab lack of a high-yield sweep account is making us do a lot of work! I've done it as you described and it does work. It's important because losing even one day of interest in a high-yield MM can make a 3-month T-bill trade unprofitable. The things to remember: Stocks take T+2 days to settle and Mutual funds take T+1 days to settle. I'm not sure how long it takes a bond or t-bill to settle, maybe someone else can answer this. The worse case when you screw this up is a margin fee, which of course I have done.

 

[jim584672]

Schwab lack of a high-yield sweep account is making us do a lot of work! I've done it as you described and it does work. It's important because losing even one day of interest in a high-yield MM can make a 3-month T-bill trade unprofitable. The things to remember: Stocks take T+2 days to settle and Mutual funds take T+1 days to settle. I'm not sure how long it takes a bond or t-bill to settle, maybe someone else can answer this. The worse case when you screw this up is a margin fee, which of course I have done.

T-Bills settle next day on the secondary market trades.

 

[Dtail]

Logged on to Schwab this morning. ~5.25% seems more common now and ~5.5% for Callable. Life is getting interesting. I think they may be anticipating a 50bps hike in a couple of weeks.

While on the subject of Schwab, I had a long chat with a rep yesterday. He said, and he double checked, that one could buy a CD without any funds in their "Sweep" account, and as long as you do have funds by the settlement date all will be OK. So, if one buys a new issue CD and the settlement date is say 2 weeks away, as long as one has sold their prime MM fund by the day before the settlement date, all would be good. That saves putting funds into their low yield sweep account and missing out on a couple of weeks interest.

IIRC, Fidelity takes the settlement out of the high yield MM account and thus one doesn't have to keep funds in the lower (still 4%) sweep accounts.

 

[Car-Guy]

This afternoon, Schwab added 18mo non callable CD's for 5.4%. Get them while they are hot!

Seems clear (to me) we are going to see ~6% in another month or so. YMMV

 

[PlayinwithFIRE]

Forbright CD- minimum $1000
https://www.forbrightbank.com/consumer-online-cds/


12 month term- 5.12% (5.25% APY)

 

[disneysteve]

Ally is increasing to 3.6%.

 

[GenXguy]

Ally is increasing to 3.6%.

I think you mean their savings account. I can get over 4 1/2% in my MM fund. I emptied my Ally savings. lol


Edit - confirmed my Vanguard Money Market 7 day SEC yield is 4.51%.

 

[Jackietime]

From Ally Bank today...

Your Money Market Account rate is increasing from 3.50% to 3.80% Annual Percentage Yield (APY) on all balance tiers. Your new APY goes into effect on 3/10/2023, and will appear in your account on 3/11/2023.

 

[audreyh1]

OK I got an e-mail notice that the Ally online savings account was going from 3.4% to 3.6%.

I hadn’t noticed a Money Market account paying slightly higher rates.

 

[NomDeER]

I've got a question for those of you who have a settlement fund at Vanguard. For the first time, I noticed that my brokerage account statement has an APY listed. That hasn't been there in the past. Is this new for any of you? It says "APY as of March 9, 2023." That APY is 4.1%. But, when I click on the link to the Vanguard Federal Money Market Fund, it says that the SEC 7-day yield is 4.51%.

I had been led to believe that the settlement account/money market fund return was the SEC 7-day yield and have been making decisions accordingly. Was I mistaken, and was the Vanguard rep I talked to mistaken?

 

[audreyh1]

Any MM fund APY quote will have a date associated with it. They are variable.

 

[NomDeER]

Any MM fund APY quote will have a date associated with it. They are variable.

I realize that the APY will depend on the date. The same is true for my bank accounts. That isn't the issue.

It is not the date that is new. I have never seen any APY listed on my account page before. This is new. I had looked for something like that before. I previously was told that the 7-day yield that they listed was what I was earning on that account. There is a .41 difference between the two. I'm trying to be able to compare what I get in this settlement/MM fund to other options.

 

[Freedom56]

Charles Schwab Bank 1 year CD now at 5.35% (non callable).

 

[njhowie]

Charles Schwab Bank 1 year CD now at 5.35% (non callable).

Same available on Fidelity and 18 month Schwab Bank non-callable for 5.4%

 

[copyright1997reloaded]

Same available on Fidelity and 18 month Schwab Bank non-callable for 5.4%

Picked up some of this.

I do need to be careful as I use Schwab for some of my accounts, so need to be cognizant of FDIC limits regarding settlement funds, etc.

 

[slowsaver]

When you guys look for brokered CDs, do you care what banks they come from? I see Charles Schwab mentioned. Do you avoid smaller banks, like Pacific West Bankcorp, etc? Or, doesn't it matter due to fdic insurance?

 

[pb4uski]

I don't care... I just stay within the FDIC limits.

 

[slowsaver]

Ok, thanks. I'm just trying out brokered CDs for the first time with just $10k (well under fdic limit). I'm getting tired of the super-low rates I'm getting at my credit union (FirstTech Fed).