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Old 03-11-2023, 11:41 AM   #461
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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/sili...-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.
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Old 03-11-2023, 01:20 PM   #462
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Yesterday, Schwab had a 5.25% 2 year Cd that is NON callable. Morgan Stanley in Utah. If itís still thereÖÖ.
Just saw the same CD at Fidelity and Vanguard.
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Old 03-11-2023, 01:38 PM   #463
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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
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Old 03-11-2023, 01:53 PM   #464
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Schwab 18 month 5.4% CD still available at Fidelity.
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Old 03-11-2023, 02:27 PM   #465
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Things I am thinking aboutÖ.SBV was selling CDís 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 CDís 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.
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Old 03-11-2023, 05:16 PM   #466
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Things I am thinking aboutÖ.SBV was selling CDís 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 CDís 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.
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Old 03-11-2023, 06:08 PM   #467
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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.
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Old 03-11-2023, 06:31 PM   #468
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Let's get this thread back on topic, please.
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Old 03-12-2023, 06:30 AM   #469
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Ally no penalty 11 month CD at 4.75%. Up from 4.0%.
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Old 03-12-2023, 06:32 AM   #470
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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!

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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.
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Old 03-12-2023, 06:46 AM   #471
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Wow, that was quick and a big jump!

I had just upgraded last Sunday. But hey, it looks like Iím 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.
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Old 03-12-2023, 07:12 AM   #472
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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?
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Old 03-12-2023, 07:35 AM   #473
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Is it not true that accounts are protected up to 500k if you and your spouse are on the account?
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Old 03-12-2023, 07:40 AM   #474
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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.
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Old 03-13-2023, 08:06 AM   #475
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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).
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Old 03-13-2023, 08:46 AM   #476
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There are plenty of 2 year 5.25% non-callable CDs left at Fidelity from Morgan Stanley and no shortage of 5.25-5.3% one year CDs from various banks.

All high grade corporate notes from big banks on Fidelity have sold out.
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Old 03-13-2023, 08:52 AM   #477
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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.
Schwab still has 18mo new issue non callable CD's for 5.4% as of 5 mins ago.
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Old 03-13-2023, 09:40 AM   #478
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Schwab still has 18mo new issue non callable CD's for 5.4% as of 5 mins ago.
Thanks, I see it there.

Unfortunately, there (and Ameritrade) are where I have my non-tax deferred accounts. I still might pick some (more) up.

ETA: Decided to buy some of the 5.35% 1-year issue.
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Old 03-13-2023, 09:47 AM   #479
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^^^^
I'll probably pickup another 100k later today too... I've got a bunch of CD's maturing later this month so I hope the current levels hold (or go up) for a few more weeks so I can re-invest.
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Old 03-13-2023, 09:54 AM   #480
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Schwab still has 18mo new issue non callable CD's for 5.4% as of 5 mins ago.

I just put my order in. I consider it a vote of confidence with Schwab and it might actually be safer than the hi-yield SWVXX. I have to remember to fund it on Thursday.
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