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

[jldavid47]

The bank run and subsequent closure of Silicon Valley Bank last week may have sparked fear at Ally Bank. On Saturday, Ally Bank did something very unusual. It did a weekend rate hike, increasing the rate of one of its savings products to a rate-leading level.

Sorry, but whoever wrote this didn't do their research. The last 3 rate hikes (at least) on Ally Savings accounts have all become effective on a Saturday. There was nothing unusual about it.

 

[jldavid47]

On Fidelity this morning, I see a lot of CD's paying over 5 percent. All are with banks with which I'm unfamiliar. Is anyone blindly buying these? Or are you holding off for a few days until there is better visibility about the near term future?

I'm not blindly buying anything, but if the CD is FDIC insured and my total with that bank is under the FDIC limit I have no problem buying CDs from them. My most recent CD purchases last week were through Charles Schwab bank. I'm not concerned.

 

[RBDan]

Question - With the Fed meeting in a few days...

Would it be best to purchase a 1 year CD at 5.35% or wait? In other words, do you guys think the next bump is already priced in?

 

[Another Reader]

Fidelity is flooded with non-callable CDs 5%+ yields with durations of 12, 18, 24,36,48, and 60 months from multiple banks.

They also have 3,6, 9 months.

Some folks are trying to raise deposits in a hurry...I would look at the health of the issuing bank.

 

[pb4uski]

Problems at Schwab this morning... I sold some MM funds (SWVXX) yesterday and was planning to buy a 5.4% CD today. The order was filled overnight as expected but the money "is stuck" in the MM and didn't transfer to my cash account so I can't buy the CD.

I called in and within a couple of minutes I was told they knew of the problem with their system and it's being worked but know ETA was given..(Come-on guys, this morning, this afternoon, tomorrow, give me some idea)

Good thing I didn't need to money 1st thing this morning (as they promise)...

Thay's strange. At 11:36 am I bought a 5.1% 3-year Discover CD 2546733A2 and didn't have any money in my settlement account but had more than enough to cover in in SWVXX.

 

[Gotadimple]

Some folks are trying to raise deposits in a hurry...I would look at the health of the issuing bank.

Agree there are a lot of small banks out there. I use Bauer Financial to look at financial stability, and may google the bank to understand who their clients are.

https://www.bauerfinancial.com/
Click on Ratings.

 

[Car-Guy]

Well I just picked up a new issue 1yr for 5.4% non callable paid monthly at Schwab about an hour ago to add to my CD portfolio. Bought 100k and it was sold out in less than 2 hours.

 

[jim584672]

Sold some Treasuries early and bought 18 month 5.4% Schwab CDs for my IRA.

 

[audreyh1]

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.

I got my funding notices today, and yep, I got the new higher rate.

 

[Dtail]

I got my funding notices today, and yep, I got the new higher rate.

Yeah same here.

 

[oiseux]

Thay's strange. At 11:36 am I bought a 5.1% 3-year Discover CD 2546733A2 and didn't have any money in my settlement account but had more than enough to cover in in SWVXX.

I had this one selected and was about to buy and then it disappeared.... you beat me to it. Sounds like we can expect to have others flow through.

 

[Chuckanut]

I got my funding notices today, and yep, I got the new higher rate.

You can do a lot worse than 4.75% on an almost one year Cd with no early termination penalty. [emoji846]

 

[disneysteve]

I just picked up a 2-year brokered CD at Vanguard, matures 3/24/25, at 5.25%. I thought that was pretty good. Not callable.

 

[GenXguy]

I just picked up a 2-year brokered CD at Vanguard, matures 3/24/25, at 5.25%. I thought that was pretty good. Not callable.

Ally one I assume. I picked up a Wells Fargo one through Vanguard late Sunday for 2-year 5.25 non-callable. But dropped to 4.95% to get a 3-year non-callable Morgan Stanley.

Now, I have more funds in place at Fidelity and soon will at Vanguard. Hope I don't miss out on getting a good rate.

 

[disneysteve]

Ally one I assume. I picked up a Wells Fargo one through Vanguard late Sunday for 2-year 5.25 non-callable. But dropped to 4.95% to get a 3-year non-callable Morgan Stanley.

Yes, the Ally one. I also got a 4.95% one for 3.5 years from United Fidelity.

 

[audreyh1]

You can do a lot worse than 4.75% on an almost one year Cd with no early termination penalty. [emoji846]

Yeah, the no penalty aspect is worth a lot to me. Also no interest paid until 2024 unless I upgrade again.

 

[lucky penny]

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

I have never had a "no penalty" CD & wonder what the downside is. Can you literally close it & withdraw the balance after X days?

 

[dmpi]

I bought a 1-year 5.35% American Express & a 1-year Pacific Premier Bank. These pay once at maturity pushing my income to next year. I worry a bit about Pacific Premier Bank but it's FIDC insured so whatever happens; happens.

 

[audreyh1]

I have never had a "no penalty" CD & wonder what the downside is. Can you literally close it & withdraw the balance after X days?

You can close it and withdraw immediately. If rates are rising I usually upgrade and as soon as the no penalty CD is closed the funds are available to buy another CD.

The downside is that they usually don’t pay as much as a CD with penalty. But if they are paying more that the savings account, it’s worth it if you are waiting for a better opportunity.

 

[disneysteve]

You can close it and withdraw immediately. If rates are rising I usually upgrade and as soon as the no penalty CD is closed the funds are available to buy another CD.

At Ally you can close it after 6 days, so not quite immediate. Also you have to withdraw the full amount. You can’t take a partial withdrawal.

 

[audreyh1]

At Ally you can close it after 6 days, so not quite immediate. Also you have to withdraw the full amount. You can’t take a partial withdrawal.

Right, once you are past the initial 6 days during which you can’t close it, your money is available immediately after closing the CD.

 

[Freedom56]

Fidelity still has 5%+ non-callable CDs from 6 through 60 months from multiple banks. Another batch landed.

 

[momoftwo]

The no penalty feature at Ally works for me.
I just closed one from a month ago paying 3.8%>
Turned around and bought the 4.75% in two smaller chunks. After 6days, i can close one or both if their rate increases.
Takes about 10 min online to update at Ally..
Not the highest rate, but suits me.

 

[Dtail]

I have never had a "no penalty" CD & wonder what the downside is. Can you literally close it & withdraw the balance after X days?

No real downside except when one closes it, the whole CD must be closed.
Since one can close it after 6 days, one can substitute it effectively for an online savings account. The only caveat there is one might have to open multiple CD's in order to mimic the access of a savings account.
I still use a savings account, but keep only very short term living expenses in there.

 

[audreyh1]

If you are closing a no penalty to upgrade to a newer CD you would likely want the whole amount withdrawn anyway.

Be aware that Ally still imposes a 6 transaction limit per monthly statement cycle on withdrawals from their savings accounts. You can run into this limit if you do a bunch of CD transactions in one month. For this reason I opened up a checking account (no limits) a few years ago.