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

[mn54]

Quote:

Originally Posted by calmloki And state tax free. And a cookie.

and free turbotax!

[NomDeER]

Quote:

Originally Posted by cbo111 Well the new year has commenced, and I am still patiently waiting for a non-callable 5% rate for 5 years. Crazy. Ha!

I think it's the 5 years that is pretty iffy. Short-term CDs at 5% are pretty likely this year. But, I think I'd rather keep my money available in my money market settlement account than buy very short-term CDs.

[njhowie]

Quote:

Originally Posted by Car-Guy ^^^^ 5%+ is what many of us want... I think if JP raises rates another 1/2 point on ~Feb1 we will see it soon after. Just 1/4 and maybe not. Of course 4.6 and 4.7 that we can get at Schwab today is pretty close.

I already have some 5-year new issue non-callable Capital One CDs at 5% from the run up a couple months ago when the rates topped out thus far. I continue finding bargains in excess of 5% in the secondary market here and there. Yesterday I got 9-month 5.7% non-callable.

No matter what the rates are, folks always "want" more. Go back and you'll see a couple folks adamant that they want and will get 6% and won't buy before then.

Going forward, I believe we'll see 5% on the one year. Maybe we'll see it for 2-year, and possibly 3-year. Beyond that, will likely be the same as what we have today - falling off on longer term rates.

Bond market and yield curve continue to indicate investors do not believe these rates are going to be with us longer term.

If you really want to guarantee the yield, take some of what's available today. Again, just keep in mind where we've been for the past 10 years. The difference between 5.0% and 4.6%/4.7% is a non-issue in the bigger scheme of things. Can always buy more later if rates continue higher.

[njhowie]

Quote:

Originally Posted by NomDeER I think it's the 5 years that is pretty iffy. Short-term CDs at 5% are pretty likely this year. But, I think I'd rather keep my money available in my money market settlement account than buy very short-term CDs.

Bingo!

That's the way to do it. Remember the constant drum beat the past couple years "Cash is trash". Don't hear that anymore, do we? Cash is once again king.

[ShokWaveRider]

Quote:

Originally Posted by calmloki And state tax free.

Not an issue in Florida!

[Chuckanut]

Quote:

Originally Posted by NomDeER I think it's the 5 years that is pretty iffy. Short-term CDs at 5% are pretty likely this year. But, I think I'd rather keep my money available in my money market settlement account than buy very short-term CDs.

I just had a CD roll over. Even CDs with only a 2 year duration are starting to become callable. The yield on a callable 2 year CD is 0.1% more this morning. Not enough, IMO. I bought a non callable CD.

[jazz4cash]

Navy Federal Credit Union has 15 month 5% CD available. These short term CD's are generally not attractive to me but this one has my attention.

Edit: Will be available Jan 9th

[ReadyNotReady]

Western State bank has a HYMM for 4.25% https://apps.westernbanks.com/

[RetiredAndLovingIt]

With all the 4%+ short term CD's available at Fidelity I decided to ladder one per month for income instead of holding the cash in my Discover savings account at a lower rate. I have a bunch of large CD's maturing this year so I'll continue that strategy and lock in 2-3 years of income as long as these rates stay high and I'll also have a stash to invest in Treasuries and long term CD opportunities as they show up. (If they show up!!)

[njhowie]

Quote:

Originally Posted by RetiredAndLovingIt With all the 4%+ short term CD's available at Fidelity I decided to ladder one per month for income instead of holding the cash in my Discover savings account at a lower rate. I have a bunch of large CD's maturing this year so I'll continue that strategy and lock in 2-3 years of income as long as these rates stay high and I'll also have a stash to invest in Treasuries and long term CD opportunities as they show up. (If they show up!!)

If you're buying maturities 1 year or less, then treasuries have better yields at this time.

[oiseux]

Quote:

Originally Posted by RetiredAndLovingIt With all the 4%+ short term CD's available at Fidelity I decided to ladder one per month for income instead of holding the cash in my Discover savings account at a lower rate. I have a bunch of large CD's maturing this year so I'll continue that strategy and lock in 2-3 years of income as long as these rates stay high and I'll also have a stash to invest in Treasuries and long term CD opportunities as they show up. (If they show up!!)

I'm doing the same thing, except with a one year offset. I'm trying to shift income out of this year. I also saw the Treasuries are pretty compelling right now as well, especially for my high tax state.

[explanade]

Quote:

Originally Posted by jazz4cash Navy Federal Credit Union has 15 month 5% CD available. These short term CD's are generally not attractive to me but this one has my attention. Edit: Will be available Jan 9th

What are the membership requirements, Navy vet or active service or family member?

[wrigley]

Quote:

Originally Posted by explanade What are the membership requirements, Navy vet or active service or family member?

Any branch of the military active or vet. Yes, if you have a family member that is a NFCU member you can join through them. I've been a member since the late 80's and at that time the only way you could join was you had to be stationed overseas. I'm sure there are other ways now you could join. They are the largest CU in the world, and If I'm not mistaken, the second largest financial institution behind JP Morgan Chase.

Mike

[pb4uski]

Quote:

Originally Posted by wrigley ... They are the largest CU in the world, and If I'm not mistaken, the second largest financial institution behind JP Morgan Chase. Mike

While NFCU is the world's largest CU with about $160 billion in assets, the second part isn't even close to being right. The 100th largest bank in the world is Quatar National Bank with $300 billion in assets, almost twice the size of NFCU. The world's largest banks are in China. JPM ranks 5th largest in the world with $3.7 trillion in assets.

At $160 billion, NFCU would be about the same size as the 25th largest US bank.

[REWahoo]

Quote:

Originally Posted by jazz4cash Navy Federal Credit Union has 15 month 5% CD available. These short term CD's are generally not attractive to me but this one has my attention. Edit: Will be available Jan 9th

This CD went live today. From the NFCU website:

Quote:

Open with as little as $50. You can keep adding money up to $250,000. Don’t wait—offer ends by April 30, 2023!

[Car-Guy]

So looking at the "tons" of brokered CD's available today, it makes me wonder why very short term CD's (3 to 9 mos) pay less than mid term CD's (12 to 18 mos). I understand why the longer term rates (fed policy/statements create the inverted curve) pay less than the mid term rates, but it seems odd to me that shorter term rates pay less than mid term rates. (If that all make sense) It's not a lot but it seems to me short term rates should be at least the same as mid terms...

I mean, if I buy a 1yr CD for 4.6%, why wouldn't the same bank be willing to pay the same rate of return for a 6mo CD... Just seems odd to me.

[calmloki]

Quote:

Originally Posted by Car-Guy So looking at the "tons" of brokered CD's available today, it makes me wonder why very short term CD's (3 to 9 mos) pay less than mid term CD's (12 to 18 mos). I understand why the longer term rates (fed policy/statements create the inverted curve) pay less than the mid term rates, but it seems odd to me that shorter term rates pay less than mid term rates. (If that all make sense) It's not a lot but it seems to me short term rates should be at least the same as mid terms... I mean, if I buy a 1yr CD for 4.6%, why wouldn't the same bank be willing to pay the same rate of return for a 6mo CD... Just seems odd to me.

Maybe the bank isn't eager to spend the same amount of work to lock up your money for 1/2 the time?

If I was lending $100 over the course of a year I'd rather make one loan than two.

Pure guess here.

edit: never mind - you said brokered CDs. Maybe the purchaser wants to work less and make fewer transactions to get that $100 invested over a year.

[njhowie]

Quote:

Originally Posted by Car-Guy So looking at the "tons" of brokered CD's available today, it makes me wonder why very short term CD's (3 to 9 mos) pay less than mid term CD's (12 to 18 mos). I understand why the longer term rates (fed policy/statements create the inverted curve) pay less than the mid term rates, but it seems odd to me that shorter term rates pay less than mid term rates. (If that all make sense) It's not a lot but it seems to me short term rates should be at least the same as mid terms... I mean, if I buy a 1yr CD for 4.6%, why wouldn't the same bank be willing to pay the same rate of return for a 6mo CD... Just seems odd to me.

At the end of the day, it's a function of what the bank believes it has to pay to have sufficient demand for those CDs.

Additionally, in my view, those shorter terms are closer in concept to basic savings accounts and money market accounts as far as how long the money is locked up, so should have yields above those, but closer to them than anything longer term.

Let's take it a step further...why would those same 3-9 month CDs be paying less than equivalent maturity treasuries?

[RetiredAndLovingIt]

Quote:

Originally Posted by REWahoo This CD went live today. From the NFCU website:

Share certificate only, not available for IRA certificate. I do love that it's an add-on, I have a lot of CD's maturing this year so it's there if nothing better comes up.
Navy usually offers a really good IRA CD rate around this time every year so here's hoping it's even better than this one.

Navy alos still allows add-ons on all your IRA CD's during tax season. It's not such a deal in this rising rate environment but still good information to keep in mind, they allow it every year during tax season.
As per Sandy, IRA CSR, Navy FCU Announcement today 12/30/2022 at 1:35 p.m. est. In 2023, IRA add-on requests can be processed from 01/04/2023 and the tax filing date of 04/18/2023. IRA back office can process IRA add-on requests from 04/19/2023 through 04/30/2023. To clarify add-ons can be either new contributions or existing funds that are maturing during the add-on period.

[Car-Guy]

Quote:

Originally Posted by calmloki Maybe the bank isn't eager to spend the same amount of work to lock up your money for 1/2 the time? edit: never mind - you said brokered CDs. Maybe the purchaser wants to work less and make fewer transactions to get that $100 invested over a year.

Maybe, but I'm buying 50k at a time, and from my POV it's just a few mouse clicks. And I'm sure it's all being done by a computer program in the back ground, so I'd think there is "little to no effort" involved once the CD offer has been made.

Quote:

Originally Posted by njhowie At the end of the day, it's a function of what the bank believes it has to pay to have sufficient demand for those CDs. Additionally, in my view, those shorter terms are closer in concept to basic savings accounts and money market accounts as far as how long the money is locked up, so should have yields above those, but closer to them than anything longer term.

Probably.