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Old 05-05-2023, 11:36 AM   #1261
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Still buying treasuries instead of CDs because the CDs have about an eight% deduction from their rate FOR ME because of state tax not charged on the treasuries.
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Old 05-05-2023, 11:55 AM   #1262
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Still buying treasuries instead of CDs because the CDs have about an eight% deduction from their rate FOR ME because of state tax not charged on the treasuries.
My state tax is almost 5%, so it effectively reduces my 5% CD rate by about .25 percnetage points to 4.75%. But with federal tax, brings it down to about 3.65%. Way behind high inflation we are seeing. Of course, the federal applies to the treasurys also, but now with rates even lower on these 3 to 5 year CDs than I had gotten a while back, it makes it just that much harder to try to keep up with inflation. A losing battle for now. Large amounts of buying power lost over the last few years of high inflation (while CD rates were very low <1%) can never be recouped at this point.
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Old 05-05-2023, 01:18 PM   #1263
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I'm buying both, even with the high marginal state tax. I can't get significant duration with the T-bills at good rates. So I buy one year plus CD's when they are over 5 percent. They are not all issued by the higher-risk entities, either. Picked up 9 and 12 month CD's from Wells Fargo yesterday.
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Old 05-06-2023, 09:35 AM   #1264
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https://www.clearpathfcu.org/depositrates.html

12 Months 6.00% apy
$5,000 minimum

I tried to search for this one and didnt see anyone have it out there.
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Old 05-08-2023, 10:35 AM   #1265
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Picked up secondary market 3 month Goldman CD 7% YTM this morning 38150VGW3. Yes, only 3 months, but, considering new issue 3 month is 5.1%, I won't complain.
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Old 05-08-2023, 10:37 AM   #1266
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https://www.clearpathfcu.org/depositrates.html

12 Months 6.00% apy
$5,000 minimum

I tried to search for this one and didnt see anyone have it out there.

No longer showing.
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Old 05-08-2023, 12:27 PM   #1267
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Quick question - never bought a CD through my Fidelity account ... I don't track which banks are good for CDs ... ex: is there a simple way to pick safe banks from this 6 month list?
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Old 05-08-2023, 12:38 PM   #1268
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In general, these should all be FDIC insured unless you exceed your "per depositor, per insured bank, for each account ownership category" limits. You have to keep track of your limits yourself. If you want to know for sure the CD is eligible, you can confirm by clicking the CD and seeing the green check mark by "FDIC Insured". Has there ever been a listed new CD on Fidelity that was NOT? I haven't seen one.

The more subtle questions around "quality" of the CD is if it is callable at all, if it is callable continuously starting soon, if they pay you interest MONTHLY or instead some longer frequency, etc., etc.
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Old 05-08-2023, 12:46 PM   #1269
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Quick question - never bought a CD through my Fidelity account ... I don't track which banks are good for CDs ... ex: is there a simple way to pick safe banks from this 6 month list?
Unless you will be exceeding the FDIC limits of $250k per depositor per bank, there is really no need to worry about bank safety at all.

Fidelity's Fixed Income Analysis Tool will show you totals by bank across all your accounts.
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Old 05-08-2023, 12:55 PM   #1270
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Unless you will be exceeding the FDIC limits of $250k per depositor per bank, there is really no need to worry about bank safety at all.

Fidelity's Fixed Income Analysis Tool will show you totals by bank across all your accounts.
If I understand what you are saying, I have been completely missing how FDIC insurance works on CDs with the brokerages (Fidelity, Schwab, Vanguard, ...). I just assumed the limits would be by brokerage, when in fact it's for the banks that are holding the CDs?
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Old 05-08-2023, 12:56 PM   #1271
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Thanks - new stuff for me!

Just bought the one year WF issue. 5.15%
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Old 05-08-2023, 12:59 PM   #1272
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.... I just assumed the limits would be by brokerage, when in fact it's for the banks that are holding the CDs?
YES
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Old 05-08-2023, 01:02 PM   #1273
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If I understand what you are saying, I have been completely missing how FDIC insurance works on CDs with the brokerages (Fidelity, Schwab, Vanguard, ...). I just assumed the limits would be by brokerage, when in fact it's for the banks that are holding the CDs?

pb4uski is correct. FDIC insurance is provided to the banks, and the CDs you buy are insured through that bank, regardless of where you bought them. Also, if you own Bank A CDs that you bought in that bank's branch and also own some brokered CDs for the same bank its the sum of both that's used to determine if you have exceeded your insured deposit limit.
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Old 05-08-2023, 01:05 PM   #1274
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Picked up secondary market 3 month Goldman CD 7% YTM this morning 38150VGW3. Yes, only 3 months, but, considering new issue 3 month is 5.1%, I won't complain.


What price did you end up having to pay to get that YTM? Itís listed as a 4.9% originally if i looking at the right one.
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Old 05-08-2023, 01:06 PM   #1275
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Quick question - never bought a CD through my Fidelity account ... I don't track which banks are good for CDs ... ex: is there a simple way to pick safe banks from this 6 month list?


Dont know how are accurate they are but Weiss does/gives bank grades. Probably others as well.
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Old 05-08-2023, 01:11 PM   #1276
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what price did you end up having to pay to get that ytm? It’s listed as a 4.9% originally if i looking at the right one.

99.404 + $1/cd
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Old 05-08-2023, 01:14 PM   #1277
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Been a Wells Fargo customer for decades, since college. Really enjoyed buying their CDs yielding over 5 percent!
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Old 05-08-2023, 01:15 PM   #1278
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99.404 + $1/cd


Tks
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Old 05-08-2023, 01:17 PM   #1279
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Quick question - never bought a CD through my Fidelity account ... I don't track which banks are good for CDs ... ex: is there a simple way to pick safe banks from this 6 month list?
Simple? Just make sure it's FDIC insured and you stay below the 250k limit as outlined in the FDIC guidelines.

Want more? Try this...

https://www.bauerfinancial.com/star-ratings/
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Old 05-08-2023, 01:18 PM   #1280
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What price did you end up having to pay to get that YTM? Itís listed as a 4.9% originally if i looking at the right one.
I see the same 4.9% as you
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