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Old 01-09-2023, 10:00 AM   #41
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With MM funds now paying 4.26% and rising with short term treasuries, you are not really penalized for waiting. It's not like last January when money market funds were paying just .02%. As long as you have your cash invested in a high yielding MM fund, you can still earn income while you wait to lock your CD yields. It's not like rates are heading to zero anytime soon. We are reverting back to normal rates.
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Old 01-09-2023, 01:22 PM   #42
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... We are reverting back to normal rates.
I hope that you are right and think that is where we are headed. 5% on the 5 year Treasury for a sustained period? What do ya think?
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Old 01-09-2023, 02:42 PM   #43
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With MM funds now paying 4.26% and rising with short term treasuries, you are not really penalized for waiting. It's not like last January when money market funds were paying just .02%. As long as you have your cash invested in a high yielding MM fund, you can still earn income while you wait to lock your CD yields. It's not like rates are heading to zero anytime soon. We are reverting back to normal rates.
Does this make sense only for the short term or do you think this makes sense for three years and beyond?


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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 have a Discover savings account. I used to keep most of my cash there because it paid more than my money market account. Now, though, the brokerage settlement account is paying more than my Discover savings account. The Vanguard settlement account is paying 4.22%. (I would think that Fidelity's settlement account and money markets are ipaying more than your Discover account, too.) That is likely to go up when the Fed increases rates over the next couple of the months. Personally, I see no reason to lock in my cash for the very short term because the very short-term CD yields don't seem likely to give me any more than my money market will yield during that period. I'll have cash available in case there are good options.
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Old 01-09-2023, 03:48 PM   #44
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Any branch of the military active or vet.
That's what I thought from what I read when first looking into signing up a couple years ago, and I was not active or a veteran. However, long ago, I was active duty for reserve training and a reservist for about 6 years with honorable discharge about 30 years ago. NFCU let me sign up despite not being active or a vet. Also I had no family members with NFCU.
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Old 01-09-2023, 04:27 PM   #45
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That's what I thought from what I read when first looking into signing up a couple years ago, and I was not active or a veteran. However, long ago, I was active duty for reserve training and a reservist for about 6 years with honorable discharge about 30 years ago. NFCU let me sign up despite not being active or a vet. Also I had no family members with NFCU.
It is even easier than that. My dad served in WWII, but I had no records. I gave some bare bones info, and Presto, they let me join.
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Old 01-09-2023, 06:10 PM   #46
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This CD went live today. From the NFCU website:


Thanks, thatís great info. The NFCU app does not state the expiry or that it is an add-onÖ..thatís a big deal. I had not gotten around to looking on the web to confirm details.
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Old 01-09-2023, 06:39 PM   #47
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I hope that you are right and think that is where we are headed. 5% on the 5 year Treasury for a sustained period? What do ya think?
I think we will see the 10 year treasury around 4.6%. That's about where it was prior to the 2008/9 financial crisis. I would take clues from what the Fed says.
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Old 01-09-2023, 06:42 PM   #48
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Does this make sense only for the short term or do you think this makes sense for three years and beyond?




I have a Discover savings account. I used to keep most of my cash there because it paid more than my money market account. Now, though, the brokerage settlement account is paying more than my Discover savings account. The Vanguard settlement account is paying 4.22%. (I would think that Fidelity's settlement account and money markets are ipaying more than your Discover account, too.) That is likely to go up when the Fed increases rates over the next couple of the months. Personally, I see no reason to lock in my cash for the very short term because the very short-term CD yields don't seem likely to give me any more than my money market will yield during that period. I'll have cash available in case there are good options.

This makes sense for the short term while the Fed keeps raising rates. It gives you liquidity and flexibility to lock in the durations when the deals arrive. Right now CDs make no sense relative to treasury yields.
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Old 01-10-2023, 11:03 AM   #49
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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

Plus the ability to consolidate any existing CD there to a longer duration with no penalty. So an old 1,2,3,4, 5 yr. can go into a new 4.2% 5 yr. with no penalty.

Just consolidated (4) Navy roth ira's into (2) 7 yr at 4.25%
So I can forget about those for a while.

And opened 2 15 mo. at 5%.
Its like the wild west at Navy right now. LOL LOL
1 hr wait time if you call in though.
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Old 01-10-2023, 11:50 AM   #50
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I think we will see the 10 year treasury around 4.6%. That's about where it was prior to the 2008/9 financial crisis. I would take clues from what the Fed says.
Take them with a grain of salt. Anyone remember what their dots said in late 2021?

said right now Fed Funds would be at .75 or so.

https://www.forexlive.com/centralban...eting-20210922

Does anyone remember when they said they would keep rates low through 2023?

https://www.nytimes.com/2020/09/16/b...est-rates.html

If you believe the Fed can forecast accurately, you have lost a lot of money.
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Old 01-10-2023, 12:15 PM   #51
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Agree, short term rates being higher than long term rates is the clue I look at. No idea exactly when, but its going to get really ugly.


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Take them with a grain of salt. Anyone remember what their dots said in late 2021?

said right now Fed Funds would be at .75 or so.

https://www.forexlive.com/centralban...eting-20210922

Does anyone remember when they said they would keep rates low through 2023?

https://www.nytimes.com/2020/09/16/b...est-rates.html

If you believe the Fed can forecast accurately, you have lost a lot of money.
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Old 01-10-2023, 01:38 PM   #52
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Plus the ability to consolidate any existing CD there to a longer duration with no penalty. So an old 1,2,3,4, 5 yr. can go into a new 4.2% 5 yr. with no penalty.
Nice ! I have a 7 year CD at Andrews (air force base) FCU getting 3.1 %, which I got 2 years ago. Maybe I ought to call up Andrews and ask if I can roll it into a their current 5 year CD deal at 4.2 %, without a penalty.
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Old 01-10-2023, 04:01 PM   #53
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Nice ! I have a 7 year CD at Andrews (air force base) FCU getting 3.1 %, which I got 2 years ago. Maybe I ought to call up Andrews and ask if I can roll it into a their current 5 year CD deal at 4.2 %, without a penalty.


Yes, please call and let us know what they say! I have 7 and 12 month maturities there at 3%. I recently scraped the interest off to buy 6 yr @5.45.
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Old 01-10-2023, 06:34 PM   #54
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Take them with a grain of salt. Anyone remember what their dots said in late 2021?

said right now Fed Funds would be at .75 or so.

https://www.forexlive.com/centralban...eting-20210922

Does anyone remember when they said they would keep rates low through 2023?

https://www.nytimes.com/2020/09/16/b...est-rates.html

If you believe the Fed can forecast accurately, you have lost a lot of money.
Somebody had a Fed blooper reel but I can't find it back.
The two recent ones:
"inflation is transitory"
"the subprime mortgage problem is self-contained"
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Old 01-10-2023, 09:02 PM   #55
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Maybe I ought to call up Andrews and ask if I can roll it into a their current 5 year CD deal at 4.2 %, without a penalty.
I already tried that with one of my banks, I even offered to open a second $100k CD. As much as they would have loved to do it, they said Federal Banking laws don't allow them to wave penalty fees.
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Old 01-11-2023, 05:49 AM   #56
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That's what I thought from what I read when first looking into signing up a couple years ago, and I was not active or a veteran. However, long ago, I was active duty for reserve training and a reservist for about 6 years with honorable discharge about 30 years ago. NFCU let me sign up despite not being active or a vet. Also I had no family members with NFCU.
Umm, yes! U r a vet. Anyone who raised their hand, took the oath, served (even for one day) and then received a discharge is considered a veteran. Thank you for your service. I have no doubt Navy Fed will take you as a client. Good luck.
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Old 01-11-2023, 08:42 AM   #57
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Yes, please call and let us know what they say! I have 7 and 12 month maturities there at 3%. I recently scraped the interest off to buy 6 yr @5.45.
Too busy now, but will call later, perhaps. You didn't get the 6 year 5.45% at Andrews, did you? I see they have a 5 year CD at 4.2 %, but no 6 year CD. I'd almost rather they didn't 'haggle' for rates and deals. Is nothing sacred, lol? I tried getting my local credit union to give me a deal and they said no dice, the rules are the rules. How the heck can Navy FCU get away with waiving early termination fees, I wonder.
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Old 01-11-2023, 10:48 AM   #58
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Too busy now, but will call later, perhaps. You didn't get the 6 year 5.45% at Andrews, did you? I see they have a 5 year CD at 4.2 %, but no 6 year CD. I'd almost rather they didn't 'haggle' for rates and deals. Is nothing sacred, lol? I tried getting my local credit union to give me a deal and they said no dice, the rules are the rules. How the heck can Navy FCU get away with waiving early termination fees, I wonder.
Somehow I missed the 6 yr 5.45 at Andrews. I mis-read your question....The 6yr 5.45 deal was a MYGA I bought because the brokered CDs seem to be losing call protection. It is still available.

I re-read the CD disclosure at NFCU and I think the folks getting to roll into a new certificate with no penalty are getting a generous interpretation of the policy. Generally speaking they is a lot of discretion in how the policies are enforced.
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Old 01-11-2023, 01:02 PM   #59
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Does the signal to noise ratio in this thread typically increase when the number of deals decreases? It's sometimes hard to weed through all the chatter to see if there are actually any deals to be had. Perhaps a separate thread for discussions of CD/MM rates/Deals and this one just for posting of the actual deals would be really helpful. Don't get me wrong...some of the discussions are interesting, they just happen to really obscure what I think is the original intent of the thread.

Not looking for a discussion on this, maybe just seeding some food for thought.
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Old 01-11-2023, 04:44 PM   #60
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Umm, yes! U r a vet. Anyone who raised their hand, took the oath, served (even for one day) and then received a discharge is considered a veteran. Thank you for your service. I have no doubt Navy Fed will take you as a client. Good luck.
Well thank you, but unfortunately, there are some strict rules on veteran status. I have about a year of active duty for when I was in training, which would be more than enough to qualify me as a veteran, but any active duty time for reserve training is excluded in meeting the time requirement.

You are correct about Navy Fed taking me as a client. I've been a NFCU member since 2019.
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