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

[Trooper]

Still looking for CD's from stronger banks.

I'm dipping my toe into the brokered CD world, and wondering how much the offering bank has to do with principal risk. I know all banks are not created equal,, but how does one research bank quality?

For example there's a CD at Vanguard now from Cadence Bank in Tupelo, MS. How would one evaluate that (interest rate aside)?

 

[ShokWaveRider]

I'm dipping my toe into the brokered CD world, and wondering how much the offering bank has to do with principal risk. I know all banks are not created equal,, but how does one research bank quality?

For example there's a CD at Vanguard now from Cadence Bank in Tupelo, MS. How would one evaluate that (interest rate aside)?

https://weissratings.com/en/search?o=total-assets-safety+desc&p=1&q=Cadence

 

[Trooper]

^^^ Thank you!

 

[Slater]

How do you guys feel about what Trooper mentioned. I have a Vanguard acct & see that theyre offering a 5.25% / 4 month to 2 year cd's for 5.25%
I have $50k just sitting in a MM doing nothing for me.....
Anything I really need to know inregards to a brokered cd, 12 months isnt a very long term to profit a few thousand dollars & no risk....
thanks for any insight

 

[ShokWaveRider]

How do you guys feel about what Trooper mentioned. I have a Vanguard acct & see that theyre offering a 5.25% / 4 month to 2 year cd's for 5.25%
I have $50k just sitting in a MM doing nothing for me.....
thanks for any insight

How much is your MM paying?

 

[RunningBum]

How do you guys feel about what Trooper mentioned. I have a Vanguard acct & see that theyre offering a 5.25% / 4 month to 2 year cd's for 5.25%
I have $50k just sitting in a MM doing nothing for me.....
thanks for any insight

Hopefully you have that money sitting in your Vanguard settlement account, using VMFXX which currently has a 4.65% 7-day yield. That's much better than doing nothing.

Still, you can get a better rate with brokered CDs. I admit I haven't been diligent in researching bank ratings and should be. FDIC coverage helps, but how long will it take to get your money back, and would they continue paying CD interest during that time?

 

[RetiredAndLovingIt]

I'm buying the highest rate I can get if they have FDIC insurance and are call protected.

 

[njhowie]

... but how long will it take to get your money back, and would they continue paying CD interest during that time?

Bank seizures usually happen on Friday and acquiring bank has the accounts on Monday morning.

As far as your CD terms being honored...it ceases the moment the bank is taken over. New bank may honor original terms or not, but you can immediately take the money back at that point.
https://www.fdic.gov/consumers/banking/facts/payment.html

How does a bank closing affect interest accruing on my deposits?

The FDIC's insurance coverage includes principal and interest through the date of the bank failure up to applicable insurance limit for each deposit. The accrual of interest ceases on all accounts once the bank is closed. If an open bank acquires deposits from the failed bank, the acquiring bank becomes responsible for re-establishing interest rates and beginning the accrual of interest after the date of the failure of the bank. The acquiring bank may change the interest rate on the acquired deposits, but the depositor may withdraw their insured funds without penalty if they chose to do so. If no acquiring bank is found for the deposits and the FDIC pays the depositors directly for their insured amounts, interest does not accrue past the date of failure.

 

[Trooper]

https://weissratings.com/en/search?o=total-assets-safety+desc&p=1&q=Cadence

How do you guys feel about what Trooper mentioned. I have a Vanguard acct & see that theyre offering a 5.25% / 4 month to 2 year cd's for 5.25%
I have $50k just sitting in a MM doing nothing for me.....
Anything I really need to know inregards to a brokered cd, 12 months isnt a very long term to profit a few thousand dollars & no risk....
thanks for any insight

Well I see that they're rated B+ per ShokWaveRider's link.
That's better than any grade I ever got in school! [emoji41]

 

[Freedom56]

Given the number of banks in this country (over 4000), bank failures are rare.

Here is running list of banks that have failed sorted by date from the FDIC:

https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/

Since that list is backward looking and the FDIC is keeping problem list banks confidential there are sites that are tracking which banks are on the list from public information such as enforcement actions.

https://www.calculatedriskblog.com/2023/01/q4-2022-update-unofficial-problem-bank.html

There should be an update for Q1 2023 in a few weeks.

 

[Slater]

How much is your MM paying?

Hopefully you have that money sitting in your Vanguard settlement account, using VMFXX which currently has a 4.65% 7-day yield. That's much better than doing nothing.

Still, you can get a better rate with brokered CDs. I admit I haven't been diligent in researching bank ratings and should be. FDIC coverage helps, but how long will it take to get your money back, and would they continue paying CD interest during that time?

Thanks for the encouragement & information.
Ive always banked with a credit union & years past they have had great promotional rates on CD's but appears that is over....
The MM is only paying .10%, a joke......
I cant just have this money sit any longer.
Everything else is invested & this $50k is just sitting, Dont forsee needing it for an emergency so why not get it working for me....
Really not enough money to keep it in the "side lines / dry powder" waiting for something to happen.....

 

[Smallr]

Amex Savings

New year, new thread.

My Amex Savings is 3.75% APY, 3.57% Rate.

 

[finnski1]

Another batch of City National 5/5 and 5.1/3 at Fidelity.

Just put in order for the 5.1 3 year non callable.
Thanks for the heads up.

 

[aja8888]

Thanks for the encouragement & information.
Ive always banked with a credit union & years past they have had great promotional rates on CD's but appears that is over....
The MM is only paying .10%, a joke......
I cant just have this money sit any longer.
Everything else is invested & this $50k is just sitting, Dont forsee needing it for an emergency so why not get it working for me....
Really not enough money to keep it in the "side lines / dry powder" waiting for something to happen.....

Slater, something is happening right now .....5+ % CD's! Get them while they are hot!

 

[Free bird]

Zion Bancorp is rated BBB+ by Fitch. 3 out of 5 on the buttered popcorn scale. What ya think?

 

[pb4uski]

Zion Bancorp is rated BBB+ by Fitch. 3 out of 5 on the buttered popcorn scale. What ya think?

If you're talking about their CDs if the CD is FDIC insured and under the FDIC limits then their ratings don't matter IMO. I bought a 5.4% brokered CD issued by Zion yesterday.

At worst, the risk is that you have to wait a couple days for your money if they went into receivership.

 

[Free bird]

Like one OP said what happens if they fail? What will your new rate be & how long will it take for the gubmt to make you whole?

 

[pb4uski]

^^^ Haven't you heard? The sky is falling.

 

[Free bird]

Like Free says. The proof is in the puddin. Gotta wait till they open the books & report.

 

[Car-Guy]

Zion Bancorp is rated BBB+ by Fitch. 3 out of 5 on the buttered popcorn scale. What ya think?

FDIC insured and non callable... Go for it up to 250k.

 

[pb4uski]

Like Free says. The proof is in the puddin. Gotta wait till they open the books & report.

You can always cash out everything, put it in a briefcase and store it under your bed.

An average attache case (18″ x 12″ x 4.5″) can fit about US $1,000,000. Assuming all US $100 bills, a 25″ x 18″ x 4″ briefcase can fit about US $2,400,000 (theoretically). An average attache case like the one below (18″ x 12″ x 4.5″) can fit about US $1,000,000.

What would you put your mony in that is less risky than an FDIC insured CD?

 

[Free bird]

I’m in. I need a cheering section. Say it louder.

 

[copyright1997reloaded]

You can always cash out everything, put it in a briefcase and store it under your bed.



What would you put your mony in that is less risky than an FDIC insured CD?

I suggest $500 Euro notes while they are still in circulation, more nominal value in that attaché case.

 

[Free bird]

Janet Yellen should send us all a bonus for doing our part to save regional banks.

 

[pb4uski]

Janet Yellen should send us all a bonus for doing our part to save regional banks.

The bonus is embedded in that 5.4% rate.