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

[Car-Guy]

Are you seeing higher CD rates at 2,3,4, and 5 years? The shortest end will continue to move up with rate hikes but the spread with treasuries at 2,3,4, and 5 years continues to grow. This will pull CD rates down at those durations.

I really don't watch anything over 2 years very close. So I can't say.

 

[GenXguy]

I don't really don't watch anything over 2 years very close. So I can't say.

I didn't buy anything in the last week that was less than 2 years. The 4 and 5 year are definitely down now, which I expected when treasuries took a dive, which is I why I went in pretty heavily last week. I was able to get 5%+ on the longer term last week.

 

[jurgs01]

Have we seen the peak in rates for the long end?

The long end will come down as we enter recession and/or a credit crises as the normal fear trade. May climb higher if we get another bull trap.

I would bet we are going to lose control of the long end of the curve sometime this decade due to the massive fiscal imbalances and the market realizing the only way out is through inflation.

 

[pb4uski]

Are you tempted? B+ rated California Bank. The name says it all..... We "Hope" we can pay you in a years time. LOL

If it's FDIC insured and you don't wear a tin-foil hat why would you care what the name or rating is?

 

[harley]

Are you tempted? B+ rated California Bank. The name says it all..... We "Hope" we can pay you in a years time. LOL

If it's FDIC insured and you don't wear a tin-foil hat why would you care what the name or rating is?

Yeah, I would never buy a CD from Chase Bank, because I might have to chase them down to get my money and I'm to old to run.

 

[jldavid47]

There is a 1y 5.5% at Schwab this evening.

That particular CD from Bank of Hope CA is actually a 15 month CD. It settles 3/31 and matures 7/1/24. Still, that's a very good rate for 15 months. As for the name, why should I care? It's FDIC insured and it's not like I'm putting our entire net worth there. Just a sliver.

 

[audreyh1]

Yeah, I would never buy a CD from Chase Bank, because I might have to chase them down to get my money and I'm to old to run.

Good one!

 

[njhowie]

The shortest end will continue to move up with rate hikes ...

I don't believe so. Short end has likely peaked. Fed signaled end is near...surprise, surprise ... likely ending at 5.0%, just one more 0.25% hike.

Banks/markets know this, they have no further reason to go higher with short-term CD rates. All of the current short-term CDs at 5.0% and higher will sell out and then they're likely going to move lower. They're going to follow short-term treasury yields...1-year closed yesterday at 4.56%, that's lower than the 4.68% on Tuesday before the Fed announcement.

 

[ShokWaveRider]

Jumped in on a "Hope" and a Prayer for $200k @ 5.5% 15 Month CD. Still have a few more to go before I rest for a year or so.

 

[audreyh1]

Sounds like an interesting bank with a Korean-American history.

https://www.bankofhope.com/about/our-story

Interesting message from CEO detailing contrasts between them and both SVB and Signature Bank.
https://www.bankofhope.com/files/5e...ank of hope's chairman, president and ceo.pdf

 

[dmpi]

Jumped in on a "Hope" and a Prayer for $200k @ 5.5% 15 Month CD. Still have a few more to go before I rest for a year or so.

I just jump in too for 230K. Sounds like a good deal and I feel compelled to help our Korean friends. I wonder if maybe Koreans are skittish about banks because they had their own banking crisis in 1997 and many probably lost money.

 

[Freedom56]

I don't believe so. Short end has likely peaked. Fed signaled end is near...surprise, surprise ... likely ending at 5.0%, just one more 0.25% hike.

Banks/markets know this, they have no further reason to go higher with short-term CD rates. All of the current short-term CDs at 5.0% and higher will sell out and then they're likely going to move lower. They're going to follow short-term treasury yields...1-year closed yesterday at 4.56%, that's lower than the 4.68% on Tuesday before the Fed announcement.

There still remains a chance for one more spike up as we approach the debt ceiling debate. Otherwise, I agree that short term rates have peaked but there may be some CD issues with higher yields at the short end issued by smaller banks as they increase short term liquidity. Some larger banks and brokers have similar problems. Schwab is planning on issuing $8B per month in CDs. We'll know more when banks start reporting Q1 next month.

 

[pb4uski]

Jumped in on a "Hope" and a Prayer for $200k @ 5.5% 15 Month CD. Still have a few more to go before I rest for a year or so.

Since almost 25% of my fixed income portfolio matures in 2023, I'm afraid that I'm not going to get much rest for a while.

 

[Car-Guy]

So the first of my CD's that I bought mid last year, mature today (@ Schwab). Anyone know when those funds are posted back to my cash account?

 

[Dash man]

So the first of my CD's that I bought mid last year, mature today (@ Schwab). Anyone know when those funds are posted back to my cash account?

By the end of the day.

 

[dmpi]

So the first of my CD's that I bought mid last year, mature today (@ Schwab). Anyone know when those funds are posted back to my cash account?

I'm curious about this myself. Can you get it back into SWVXX without losing a day of interest?

 

[Car-Guy]

^^^^
And that's where I'll be moving it until I decide which new CD's to buy. I'll let you guys know when I see it posted, for those interested in knowing how long it takes!

Not a big deal but it would be nice if it is posted and available today.

 

[Dash man]

I'm curious about this myself. Can you get it back into SWVXX without losing a day of interest?

You can always try putting in the order to move it to SWVXX and see it it takes it. If it doesn’t like it it’ll stop you.

 

[pb4uski]

I'm curious about this myself. Can you get it back into SWVXX without losing a day of interest?

I think you can. You'll need to call but you can buy SWVXX for an amount equal to the maturing bond and the two transactions will offset when they settle tonight.

 

[Car-Guy]

Maybe, but I hope you are wrong. I just saw (last 30 mins) two new issue 1yr CD's pop up at Schwab for 5.4 and 5.5%. Of course 2 new CD's don't make a trend. "Stuff" is happening pretty fast.

Less than 24 hours and they are gone.

 

[aja8888]

Less than 24 hours and they are gone.

I picked up the 5.4% Hope Bank one year CD this morning. I have a couple of T bills maturing very soon and decided to add to my "collection" of CD's.

 

[pb4uski]

Now if it was Hope and a Prayer bank then I might pause for a moment.

 

[Car-Guy]

I picked up the 5.4% Hope Bank one year CD this morning. I have a couple of T bills maturing very soon and decided to add to my "collection" of CD's.

Looks like you got them just in time. Congratulations. I "Hope" there are more coming in the next few weeks.

 

[Car-Guy]

By the end of the day.

You are correct... The interest on the CD that matured today was credited to my cash account just before 11am, and the original purchase amount was credited a couple of hours later. Now I can park it all in SWVXX before the market closes today.

 

[Brook2]

Any theories on why Schwab continues to be one of the highest rates everyday? Does that mean they want a lot of cash right now?