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

[Freedom56]

Remember if you are buying jumbo CDs ($100K and above) call your broker's fixed income desk. Fidelity gives discounts for jumbo CD orders. I got the Zion 5.4% for an effective yield of 5.75% with the discount. The price was $99500 for a face value of $100000.

 

[jldavid47]

Remember if you are buying jumbo CDs ($100K and above) call your broker's fixed income desk. Fidelity gives discounts for jumbo CD orders. I got the Zion 5.4% for an effective yield of 5.75% with the discount. The price was $99500 for a face value of $100000.

Nice, Freedom56! I am not purchasing in those quantities but it's a great tip for those who do.

 

[njhowie]

I don't know how much you can trust these ratings but this one is from Lendingtree.

https://www.depositaccounts.com/banks/city-national-bank-ca.html#health

https://www.depositaccounts.com/banks/city-national-bank-ca.html

Bauer Financial is my go-to - this is their business.

https://www.bauerfinancial.com/

 

[Car-Guy]

^^^^^


Very nice, I like it. Thanks

 

[mf15]

Remember if you are buying jumbo CDs ($100K and above) call your broker's fixed income desk. Fidelity gives discounts for jumbo CD orders. I got the Zion 5.4% for an effective yield of 5.75% with the discount. The price was $99500 for a face value of $100000.

Freedom: Just wondering when buying jumbo CD's why is the discount not listed online at Fidelity. Why would I have to bother with fixed income desk,unless they are trying to hide any discount. Seems like they should state this up front,when buying online and apply the discount automatically,for jumbo CD's.
Thanks
Oldmike

 

[Free bird]

Just bought 2 of the Zion 18 month CD through Vanguard. Didn’t see your post about calling in to get a discount. Sometimes the phone wait is long when I call them. If the CD sells out while I’m waiting I’ll get aggregated & will give up. One for the Roth IRA & one for the roll over IRA. No idea if I got screwed over. They settle on the 31st. Any glaring rookie mistakes?

 

[Freedom56]

Bauer Financial is my go-to - this is their business.

https://www.bauerfinancial.com/

Right now, we don't know the true state of any bank until they report Q1 earnings starting next month and we see their balance sheets. Things are moving too fast for any company to analyze the state of a given bank. What we do know is that there is an obvious liquidity problem at many banks. Large depositors are fleeing to the larger banks. Board of directors are pushing companies to move their accounts to larger banks from regional banks. Cash in accounts are moving to CDs and money market funds. The spreads between treasuries and CDs (both risk free assets) are abnormally high indicating that many banks are pretty desperate to increase liquidity.

 

[Freedom56]

Just bought 2 of the Zion 18 month CD through Vanguard. Didn’t see your post about calling in to get a discount. Sometimes the phone wait is long when I call them. If the CD sells out while I’m waiting I’ll get aggregated & will give up. One for the Roth IRA & one for the roll over IRA. No idea if I got screwed over. They settle on the 31st. Any glaring rookie mistakes?

It's hard to get screwed over on a FDIC insured CD. You will earn the 5.4% for 18 months and get your capital bank at the end of the term. Remember how bad things were with respect to yields just a year ago.

 

[njhowie]

Right now, we don't know the true state of any bank until they report Q1 earnings starting next month and we see their balance sheets. Things are moving too fast for any company to analyze the state of a given bank. What we do know is that there is an obvious liquidity problem at many banks. Large depositors are fleeing to the larger banks. Board of directors are pushing companies to move their accounts to larger banks from regional banks. Cash in accounts are moving to CDs and money market funds. The spreads between treasuries and CDs (both risk free assets) are abnormally high indicating that many banks are pretty desperate to increase liquidity.

Bauer does much more in-depth analysis compared to the cursory scratching of the surface which depositaccounts.com does. You provided depositaccounts.com as the analysis resource, I provided Bauer, which is going to be better than depositaccounts.com regardless of the day of the week.

 

[Freedom56]

Bauer does much more in-depth analysis compared to the cursory scratching of the surface which depositaccounts.com does. You provided depositaccounts.com as the analysis resource, I provided Bauer, which is going to be better than depositaccounts.com regardless of the day of the week.

I don't use depositaccounts.com and I stated that it's not clear how good these ratings are or how much you can trust them. I look at a bank's 10Q filed with the SEC. But that data is too stale with a fast moving situation. But with CDs, the FDIC is covering your capital risk as long as you stay within insurance limits.

 

[daver]

Remember if you are buying jumbo CDs ($100K and above) call your broker's fixed income desk. Fidelity gives discounts for jumbo CD orders. I got the Zion 5.4% for an effective yield of 5.75% with the discount. The price was $99500 for a face value of $100000.

Can you still request the discount if the order status is open on a 3/31/23 CD?

 

[Freedom56]

Can you still request the discount if the order status is open on a 3/31/23 CD?

I placed my order yesterday. It doesn't hurt to call.

 

[Chuckanut]

It's hard to get screwed over on a FDIC insured CD. You will earn the 5.4% for 18 months and get your capital bank at the end of the term. Remember how bad things were with respect to yields just a year ago.

I just had a 2.9% bond mature that was bought just 9 months ago. 5.4% for 18 months? It's always good to keep things in perspective.

 

[Montecfo]

If those CDs backstopped by the FDIC, do you care? For years, those banks that are currently under stress were paying next to nothing to savers. Now the tables have turned. Powell said, no rate cuts this year. So the yield curve will stay inverted until the market finally realizes that the days of easy money are over. Then the curve will start to flatten and eventually normalize. Right now the 10 year treasury has priced a 1% Fed funds rate. That isn't based on any economic reality today or the near future.

The 2/10 treasury spread has narrowed. Though it narrowed by the 2y Treasury dropping.

Jeffery Gundlach tweeted yesterday that this is a sign of imminent recession.

The recession happens after the curve begins to revert they say.

 

[copyright1997reloaded]

It's hard to get screwed over on a FDIC insured CD. You will earn the 5.4% for 18 months and get your capital bank at the end of the term. Remember how bad things were with respect to yields just a year ago.

I am starting to look at selling my 1-year T-Bills (CUSIPS 912796Z28, 912796ZY8, 912796ZN2) and reinvesting the proceeds into 1-Year CD's. Based on price data from Fido this morning, my (annualized) yields on holding them (so far) has been 12.82%, 6.20%, and 5.92% respectively. The remaining (annualized) yield (to maturity from today) on them are 4.37%, 4.43%, and 4.38% respectively.

This make sense as Treasury rates have fallen and the above are roughly what one would expect given their remaining days till maturity (337, 307,280).

My hesitation is mostly because a) I have to copy/paste pricing information manually from Fido to my spreadsheet and b) I have to explore depth of book given I don't have the $ amounts to always get the best price, then I have to put it out for sale, then I have to wait for the fill/kill to happen (which has taken 10-20 minutes sometimes).

But the spread between CD's and Treasuries has gotten so wide the hassle is worth it.

 

[Montecfo]

^^^^ it is an interesting point. I have a lot of treasuries in my step ladder.

 

[copyright1997reloaded]

^^^^ it is an interesting point. I have a lot of treasuries in my step ladder.

I would also state (hoping to not be accused of being a doom and gloomier) that I *think* this is just a similar risk arb opportunity being presented to us because of the all-of-a-sudden need for banks to get capital and a flght-to-safety on Treasuries.

However, I also have in the back of my head "What if you are wrong. What if this is increased risk (as perceived by market prices) of FDIC insurance fund capabilities (which to backstop* above the $128 or so billion in the fund would require congressional action vs. Treasuries which are a direct government obligation". This makes me hesitate (a little) in terms of going all-in on the strategy to swap treasuries with CD's.)

At the moment, I am about 1/3 CD's and 2/3 Treasuries, but it is still big $ (to me at least) that I have invested/exposed to CD's.

 

[daver]

Remember if you are buying jumbo CDs ($100K and above) call your broker's fixed income desk. Fidelity gives discounts for jumbo CD orders. I got the Zion 5.4% for an effective yield of 5.75% with the discount. The price was $99500 for a face value of $100000.

Can you still request the discount if the order status is open on a 3/31/23 CD?

I placed my order yesterday. It doesn't hurt to call.

Called Fidelity Fixed Issue Desk and they said "Jumbo CD discount is not a thing on new issues" and maybe was a secondary market purchase or via actual bank order....called in twice to confirm??

 

[njhowie]

^^^^ it is an interesting point. I have a lot of treasuries in my step ladder.

Keep in mind that interest on the treasuries is state and local tax free whereas for the CD it is not. Maybe that effects you, maybe not, but it should be factored in if you're thinking of switching from one to the other.

 

[dmpi]

I got mixed feeling about this discount thing. I don't want to have to beg for a discount for everything I buy. I like to purchase on-line by computer without human intervention. But that's just me, if you have a personal relationship with someone at the bond desk then I guess it makes sense.

 

[pb4uski]

Just bought 2 of the Zion 18 month CD through Vanguard. Didn’t see your post about calling in to get a discount. Sometimes the phone wait is long when I call them. If the CD sells out while I’m waiting I’ll get aggregated & will give up. One for the Roth IRA & one for the roll over IRA. No idea if I got screwed over. They settle on the 31st. Any glaring rookie mistakes?

I bought the same one. Question for those with Fido, this issue doesn't settle until 3/31. Is your settlement account reduced today or on 3/31?

 

[copyright1997reloaded]

Fidelity: ZIONS BANCORPORATIONNATL ASSN CD 5.40000% 09/27/2024

Zions bancorporationnatl assn cd 5.40000% 09/27/2024
Non-callable
CUSIP: DSN3N0265

 

[daver]

I bought the same one. Question for those with Fido, this issue doesn't settle until 3/31. Is your settlement account reduced today or on 3/31?

Mine is reduced today in the amount of two open orders that settle 3/31.

 

[Freedom56]

Called Fidelity Fixed Issue Desk and they said "Jumbo CD discount is not a thing on new issues" and maybe was a secondary market purchase or via actual bank order....called in twice to confirm??

I spoke to their high net worth bond specialist assigned to our account that gave me this discount.

Update: I contacted Fidelity. You have to have a minimum $3M invested in bonds/CDs at Fidelity to qualify for any discounts and other services.

 

[Freedom56]

I bought the same one. Question for those with Fido, this issue doesn't settle until 3/31. Is your settlement account reduced today or on 3/31?

The settlement account is not reduced for the Zion Bank CD order. Fidelity does not pull the funds until 2 business days prior to the settlement date.