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

[audreyh1]

Noticed today that Synchrony Bank just upped their CD rates by a full .25%. The current 16 month CD is now 5.25%.

Got an email from First Tech FCU reminding me of their 5.35% 13 month certificate.

 

[Surewhitey]

Fidelity brokered non-callable CDs - 5-Year ladder:

1y - 5.35
2y - 5.10
3y - 4.85
4y - 4.70
5y - 4.65

5y ticked up a little in the last week.

Yeah, I was just looking at the 5 y, but it has restrictions in TX. I decided on a 1 y 5.5% callable as it seems long rates will be creeping up, hoping for the next year and then get a bit more on a 5y then.

 

[Car-Guy]

I sort of hope rates stay where they are for about 6 more months and then take a big jump up.

 

[jldavid47]

Schwab Brokered CDs

Current best non-callable CD rates at Schwab:

12 mo - 5.40%
18 mo - 5.30%
24 mo - 5.15%
36 mo - 4.90%
48 mo - 4.75%
60 mo - 4.65%

 

[Montecfo]

Current best non-callable CD rates at Schwab:

12 mo - 5.40%
18 mo - 5.30%
24 mo - 5.15%
36 mo - 4.90%
48 mo - 4.75%
60 mo - 4.65%

Still not real attractive on the long end.

 

[BrianB]

Still not real attractive on the long end.

Monte, I know nobody can predict interest rates, but in your opinion do we still have some upside ahead for the longer terms? I have a some CD's maturing in in the next two months and am hoping to pick up 3 yr, 4 yr, and 5 yr term closer to 5% average rate with that money.

I'm only looking at call protected offerings and right now I could get a 4.77% blended rate. I could use other funds to buy now, but would prefer to wait until the current holdings mature.

BrianB

 

[audreyh1]

So I’ve had a Gold preferred rewards level BofA checking account for a little while, maintaining a $20K minimum balance. I get a few perks like 3.75% back on online orders with their Cash Rewards card, for example, bumped up from 3%.

Turns out BofA has some CD specials (their “Featured” CDs) available via an office visit, not online. We were in to access our safe deposit box. I was very surprised when the lady mentioned they currently had a 4.6% APY 7 month CD*. Moved a chunk from checking into that. It still meets the minimum balance requirements.

Some folks keep investments at Merrill Lunch to meet those balance requirements. Several levels https://promotions.bankofamerica.com/preferredrewards/en. I just haven’t wanted to deal with Merrill Lynch (or any additional broker) so the CD approach is simpler and I can’t believe I didn’t think of that option a year ago. Smart lady. She was the one that brought up the Gold level in the first place. Back then yields were super low anyway.

*I think these might be available online unless they tell you to make an in person appointment when you try to purchase. I also see they are offering 13 months also at the same APY. All the other offers have minuscule rates as far as I can tell.

 

[Dtail]

Still not real attractive on the long end.

True, but not sure we will see 5% on the long end with current conditions.

 

[Car-Guy]

^^^^^
Depends on what Powell says/does later this month.

 

[rkser]

I know I am speculating here but,

If Powell keeps the present rate without changing any as expected in the press, I don’t think it will change the present long CD rates.

 

[Dtail]

I know I am speculating here but,

If Powell keeps the present rate without changing any as expected in the press, I don’t think it will change the present long CD rates.

So the issue becomes when will the yield curve go back to an upwardly sloping curve vs. an inverted curve?

 

[Car-Guy]

^^^^
At some point after Powell starts cutting rates. "Or" if he says something like, rates are going to stay like this for "years".

 

[RunningBum]

^^^^
At some point after Powell starts cutting rates. "Or" if he says something like, rates are going to stay like this for "years".

That's what I'd guess. If they start cutting rates, the gap between longer and shorter term rates should narrow.

 

[jazz4cash]

Still not real attractive on the long end.

It’s attractive to me! My maturing CDs are 3% but the term was 7 yrs! It was a very good rate at the time. As far as current rates, I just don’t like the inversion

 

[pb4uski]

A little off topic, but I had a bond mature and replaced it with three new issues at 6%+ ... a 6% TD Bank new issue maturing in 2026, a 6% Goldman Sachs new issue maturing in 2026 and a 6.125% FHLB new issue maturing in 2028. My ladder was underweight for 2026-2028 so these help fill the gaps.

 

[aja8888]

A little off topic, but I had a bond mature and replaced it with three new issues at 6%+ ... a 6% TD Bank new issue maturing in 2026, a 6% Goldman Sachs new issue maturing in 2026 and a 6.125% FHLB new issue maturing in 2028. My ladder was underweight for 2026-2028 so these help fill the gaps.

Are these new issues callable?

 

[pb4uski]

Are these new issues callable?

Yes. The two corporate bonds have 1 year of call protection of the total 3 year term. The agency issue only has 3 months of call protection.

My investment hypothesis is that we'll see a couple more 25 bps rate increases in the next 6 months and then no changes for 2-3 years so I'm not very concerned about calls given the short terms. My crystal ball is broken so that is what I'm going with.

 

[Car-Guy]

My investment hypothesis is that we'll see a couple more 25 bps rate increases in the next 6 months and then no changes for 2-3 years so I'm not very concerned about calls given the short terms. My crystal ball is broken so that is what I'm going with.

Dang, I hope you are better at predicting upcoming rate increases and duration's than I am at picking the winners of football games.

 

[pb4uski]

Dang, I hope you are better at predicting upcoming rate increases and duration's than I am at picking the winners of football games.

Copy that!

 

[jazz4cash]

Yes. The two corporate bonds have 1 year of call protection of the total 3 year term. The agency issue only has 3 months of call protection.



My investment hypothesis is that we'll see a couple more 25 bps rate increases in the next 6 months and then no changes for 2-3 years so I'm not very concerned about calls given the short terms. My crystal ball is broken so that is what I'm going with.

You are not actually saying no changes for 2-3 yrs are you? I thought you’d say no more INCREASES. I think we see rates going down a bit after 1 or 2 25bps increases followed by a pause.

 

[pb4uski]

Yes, I'm thinking no changes after a couple increases... who knows but I'm thinking no decreases unless we end up having a recession.

 

[BrianB]

One CD showed up at Fidelity today with 3 yr / 5.0% / non-callable terms. There were about 2000 available. I don't remember the bank name but when I went back just now they were gone.

Might be more to come?

BrianB

 

[Montecfo]

It’s attractive to me! My maturing CDs are 3% but the term was 7 yrs! It was a very good rate at the time. As far as current rates, I just don’t like the inversion

Well it is all a matter of perspective jazz4cash!

I do not have any maturing cash now. Just looking for 5+ yr 6% high investment grade in order to move some of my equity allocation to binds. We will see if that happens.

 

[Montecfo]

Yes, I'm thinking no changes after a couple increases... who knows but I'm thinking no decreases unless we end up having a recession.

Just for perepctive: Average time between last Fed hike and 1st Fed cut is 5.5 months. I believe that goes back to 1970.

 

[Montecfo]

Monte, I know nobody can predict interest rates, but in your opinion do we still have some upside ahead for the longer terms? I have a some CD's maturing in in the next two months and am hoping to pick up 3 yr, 4 yr, and 5 yr term closer to 5% average rate with that money.



I'm only looking at call protected offerings and right now I could get a 4.77% blended rate. I could use other funds to buy now, but would prefer to wait until the current holdings mature.



BrianB

I think we may have a bit in treasuries essentially because there is a lot of new supply to be auctioned. This could push up CD and corporate yields.

But the pattern has been better deals are available briefly, so you have to be ready to strike.

We are close to the end on any Fed actions based on how things look now.