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

[Car-Guy]

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?

Not really. I've got a bunch from banks all over the country (large and small) many of which I have never heard of. I just try to be sure I stay under the 250k FDIC limit per bank since "sometimes" I buy multiple CD's from the same banks with different maturities.


But, I'll probably stay away from Silicon Valley banks for a while.

 

[NomDeER]

But, I'll probably stay away from Silicon Valley banks for a while.

What happened with Silicon Valley Bank today has some people spooked, but the real problem many depositors at that bank have is that they were above the FDIC insurance limit. A huge percentage of the deposits with SVB reportedly are uninsured (which is probably part of what caused the run on the bank). Those who have FDIC insurance reportedly will be able to get their money on Monday morning. Others will have headaches.

https://www.cnbc.com/2023/03/10/sil...ulators-fdic-to-protect-insured-deposits.html

 

[MJ]

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.

Got an email which said both the online savings and money market was going up. What surprises me is that the MM which has been typically lower than the online savings is going to 3.8% which is 20 basis points higher.

 

[Chuckanut]

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

What happened with Silicon Valley Bank today has some people spooked, but the real problem many depositors at that bank have is that they were above the FDIC insurance limit. A huge percentage of the deposits with SVB reportedly are uninsured (which is probably part of what caused the run on the bank). Those who have FDIC insurance reportedly will be able to get their money on Monday morning. Others will have headaches.



https://www.cnbc.com/2023/03/10/sil...ulators-fdic-to-protect-insured-deposits.html

The WSJ reported 151 billion dollars in uninsured funds held by SVB. That’s about 90% of the money held by the bank. Amazing.

 

[pb4uski]

Sounds like a lot of tech wizzards are going to end up with egg on their faces before this is all over.

This reminds me of the occasional poster that we get that has more than half of their wealth in their employer's stock and when we suggest that is too much they resist... its a great company... it's done great... I have confidence in them... etc.

Well guess what... sh!t happens and if you don't protect yourself then years of hard work and saving can be gone in a flash.

 

[nurseratchit]

I’m already excited about the $4.01 I’ve made with my 5% 18 month CD at Ally—haha. Nice to see after all the downward trends elsewhere. Perhaps not the highest rate but was quick and easy to set up an account with them and I appreciate their “plain language” documents.

 

[MBSC]

The WSJ reported 151 billion dollars in uninsured funds held by SVB. That’s about 90% of the money held by the bank. Amazing.

Roku has $487 million at SVB.

Roku has total cash and cash equivalents of approximately $1.9 billion as of March 10, 2023. Approximately $487 million is held at SVB, which represents approximately 26% of the Company’s cash and cash equivalents balance. The Company’s deposits with SVB are largely uninsured. At this time, the Company does not know to what extent the Company will be able to recover its cash on deposit at SVB.

Source: https://www.sec.gov/ix?doc=/Archives/edgar/data/0001428439/000142843923000010/wk-20230310.htm

 

[njhowie]

This morning, 5.5% 2-year (callable beginning in 3 months) CD available at Fidelity.

 

[Chuckanut]

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

This morning, 5.5% 2-year (callable beginning in 3 months) CD available at Fidelity.

Yesterday, Schwab had a 5.25% 2 year Cd that is NON callable. Morgan Stanley in Utah. If it’s still there…….

 

[Car-Guy]

Sounds like a lot of tech wizzards are going to end up with egg on their faces before this is all over.

This reminds me of the occasional poster that we get that has more than half of their wealth in their employer's stock and when we suggest that is too much they resist... its a great company... it's done great... I have confidence in them... etc.

Well guess what... sh!t happens and if you don't protect yourself then years of hard work and saving can be gone in a flash.

Remember Enron! I worked for a mega corp that was only a few blocks away from their HQ's in downtown Houston. I'll never forget the ~day they went under. I saw hundreds of folks out on the steps of their building waiting for the bus or a ride with nothing more than a brown box of personal items. Jobs lost, options worthless, 401k's wiped out.

 

[Montecfo]

What happened with Silicon Valley Bank today has some people spooked, but the real problem many depositors at that bank have is that they were above the FDIC insurance limit. A huge percentage of the deposits with SVB reportedly are uninsured (which is probably part of what caused the run on the bank). Those who have FDIC insurance reportedly will be able to get their money on Monday morning. Others will have headaches.



https://www.cnbc.com/2023/03/10/sil...ulators-fdic-to-protect-insured-deposits.html

Reason for that is they are a venture bank . Customers are smaller early and midstage companies with debt financing from SVB.

SVB, like all venture banks, requires their customers to bank there as a term of the financing.

Businesses often carry balances higher than FDIC limits, just for regular operations.

I suspect they had few mom and pop type savers.

 

[GenXguy]

Yesterday, Schwab had a 5.25% 2 year Cd that is NON callable. Morgan Stanley in Utah. If it’s still there…….

Just saw the same CD at Fidelity and Vanguard.

 

[Newventurer]

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?

Things I am thinking about….SBV was selling CD’s last week, MM are not FDIC insured. Schwab Savings Account (FDIC insured) paying .48% rate is safer than MM (not FDIC insured) paying over 4%, just have to be aware that you are being compensated for accepting risk and that banks that may have liquidity issues are apparently selling CD’s to raise cash

 

[Freedom56]

Schwab 18 month 5.4% CD still available at Fidelity.

 

[Spock]

Things I am thinking about….SBV was selling CD’s last week, MM are not FDIC insured. Schwab Savings Account (FDIC insured) paying .48% rate is safer than MM (not FDIC insured) paying over 4%, just have to be aware that you are being compensated for accepting risk and that banks that may have liquidity issues are apparently selling CD’s to raise cash

I got up and saw the SVB news yesterday morning. Remembering the "commercial paper" component makeup of one of my MMFs I quickly bought some 1-3month treasuries. The rate on the T's is higher I'm not out anything but the liquidity for a month.

 

[NomDeER]

Things I am thinking about….SBV was selling CD’s last week, MM are not FDIC insured. Schwab Savings Account (FDIC insured) paying .48% rate is safer than MM (not FDIC insured) paying over 4%, just have to be aware that you are being compensated for accepting risk and that banks that may have liquidity issues are apparently selling CD’s to raise cash

What risk? As long as your CD is FDIC insured, which is the case for most CDs, and you are below the 250k limit, you get your money. I see CDs as no riskier than a savings account if they are FDIC insured. I also would never leap to a conclusion that a bank is on the brink just because they are offering CDs. Offering CDs is routine bank business.

I also don't see much risk in money market accounts. Some are even FDIC insured. And if Vanguard can't give me my money market money, then there are much, much bigger issues.

I can't imagine having a bunch of money in a savings account yielding only .48%. There are savings accounts that yield much more and there are better options than savings accounts without risk.

 

[jldavid47]

I got up and saw the SVB news yesterday morning. Remembering the "commercial paper" component makeup of one of my MMFs I quickly bought some 1-3month treasuries. The rate on the T's is higher I'm not out anything but the liquidity for a month.

You aren't even out liquidity. T-bills are very liquid and you can sell them in the secondary market at any time. It may not be at a price you like, but you could sell them if needed.

 

[GenXguy]

Let's get this thread back on topic, please.

 

[Dtail]

Ally no penalty 11 month CD at 4.75%. Up from 4.0%.

 

[audreyh1]

Ally no penalty 11 month CD at 4.75%. Up from 4.0%.

Wow, that was quick and a big jump!

I had just upgraded last Sunday. But hey, it looks like I’m therefore in the 10 Day Best Rate Guarantee window so I should get the new rate. Nice!

10 Day Best Rate Guarantee
When you fund your CD within 10 days of your open date, you'll get the best rate we offer for your term and balance tier if our rate goes up within that time. The Ally Ten Day Best Rate Guarantee also applies at renewal.

 

[Dtail]

Wow, that was quick and a big jump!

I had just upgraded last Sunday. But hey, it looks like I’m therefore in the 10 Day Best Rate Guarantee window so I should get the new rate. Nice!

I funded 3 of them on March 4th, so the same should apply. Actually forgot about this Best rate guarantee. Saves me some work.

 

[audreyh1]

I funded 3 of them on March 4th, so the same should apply. Actually forgot about this Best rate guarantee. Saves me some work.

Exactly!

I opened and funded on the 4th too, so it was last Saturday in fact. This is the first time I’ve ever hit that window.

I wonder if banks are going to be more aggressive about rates to hold onto more deposits?

 

[frank]

Is it not true that accounts are protected up to 500k if you and your spouse are on the account?

 

[audreyh1]

Is it not true that accounts are protected up to 500k if you and your spouse are on the account?

Yes. It’s per depositor.

 

[copyright1997reloaded]

Bought a variety of non-callable CD's this morning at 5.2-5.3%, terms 12 months to 2 years. Also had an order in for that Schwab 5.4% non-callable (from over the weekend). That one is no longer available.

I plan on selling some of my recently purchased 1-year T-BILL and 3-year T-Notes due to the huge rate drop this morning (thus higher prices).

Cancelled my orders for today for the 3-month and 6-month T-BILL, as those in the secondary are also down in yield dramatically this morning (flight to safety).