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

[mn54]

fidelity MM FZDXX was 4.9% yesterday

[John Galt III]

Quote:

Originally Posted by Earl E Retyre Andrews 5.75% for 7.5 months https://www.andrewsfcu.org/Learn/Res...tificate-Rates

Gone ! Lasted less than 1 week.

[NomDeER]

Quote:

Originally Posted by Freedom56 Be patient, even better CD yields that what we saw in March are coming. With MM funds at 5% and still rising, there is no need to rush in. Medium to long term treasury yields are still too low and market forces will eventually cause those yields to tick up slowly.

You think that the higher CD yields will be in the medium to long term ranges at 5% plus? When do you think this is likely to happen and why? I realize that the yield curve is inverted but why wouldn't it just be that the short-term yields eventually will come down? I'm not challenging your position. Just trying to understand.

[Healthy Lifestyle]

ML MMF rate as of yesterday.
BlackRock Liquidity Funds: Treasury Trust --- Institutional Class5, 6, ** TTTXX 5.07%

I have a nice cash position sitting there for now!

[BruinBones]

I saw that NFCU is now offering a 12-month Special Easy Start Certificate at 4.85% (must have direct deposit, max only $3k, $50 bonus after three $50 transfers after initial deposit). Not for me since I was able to score a better one there earlier this year (15-month, 4.88%, max $250K).

[Freedom56]

Quote:

Originally Posted by NomDeER You think that the higher CD yields will be in the medium to long term ranges at 5% plus? When do you think this is likely to happen and why? I realize that the yield curve is inverted but why wouldn't it just be that the short-term yields eventually will come down? I'm not challenging your position. Just trying to understand.

I believe the treasury yield curve will flatten (i.e. medium to long term yield will rise), before the curve normalizes. Many Fed officials have stated since last summer that the Fed funds rates will stay elevated through the end of 2024. The economy is still very strong. I believe we will be breaking out to higher yields for 1-5 year CDs in the coming months.

[Drake3287]

Quote:

Originally Posted by Car-Guy So what do you guys (and gals) think (if you care to go out on a limb) the Fed is going to do next week? IMO, dropping rates is unlikely, pausing/holding (maybe), increasing rates another 1/4 point is likely. .

I think most "supposed" experts believe they'll hold at this next meeting and give it a wait and see until the next meeting. I tend to agree.

[jldavid47]

Quote:

Originally Posted by mn54 fidelity MM FZDXX was 4.9% yesterday

Schwab's SWVXX is at 4.93%. In our taxable account I still prefer T-Bills to SWVXX. Not only is the rate higher but the after-tax differential is even larger as we do not pay state income tax on T-bill interest.

[jazz4cash]

Quote:

Originally Posted by Dtail Interesting as one can buy a brokered Ally Bank CD on Fidelity for 18 months for 5.15%. Non callable.

I bought that one. I don’t normally bother with an 18 month term except to match a known expense (property taxes) within 24 mos. I think the spread of 15 bps is pretty narrow if you are already using Ally. I’m done with having an account there.

[GenXguy]

Quote:

Originally Posted by Drake3287 I think most "supposed" experts believe they'll hold at this next meeting and give it a wait and see until the next meeting. I tend to agree.

Yeah, seems like most people here would agree with or parrot what they hear/read from the supposed "experts". I would prefer they increase it - they were too late to the game and year over year inflation is still very high above the 2% target and unemployment very low. Even if inflation dropped to 2% eventually, that doesn't mean prices drop on average, it means they are still going up, despite what the media or politicians might want you to believe or don't understand themselves.

[njhowie]

Quote:

Originally Posted by lordjust just saw this one.. thought the JPM fans might be interested. Never checked into one of these step up ones before.. so i would be interested to hear the comments pos/neg about it. https://www.sec.gov/Archives/edgar/d...5370_424b2.htm On the 13th calendar day of June and December of each year, beginning on June 13, 2025 and ending on December 13, 2032 From (and including) To (but excluding) Interest Rate June 13, 2023 June 13, 2028 5.50% per annum June 13, 2028 June 13, 2031 6.00% per annum June 13, 2031 June 13, 2032 7.50% per annum June 13, 2032 June 13, 2033 9.00% per annum (also coming soon) https://www.sec.gov/Archives/edgar/d...5368_424b2.htm

I believe this is not the thread for discussing these. These are essentially bonds. They are certainly not CDs and they carry no assurance/insurance of principal or interest.

[Freedom56]

Quote:

Originally Posted by lordjust just saw this one.. thought the JPM fans might be interested. Never checked into one of these step up ones before.. so i would be interested to hear the comments pos/neg about it. https://www.sec.gov/Archives/edgar/d...5370_424b2.htm On the 13th calendar day of June and December of each year, beginning on June 13, 2025 and ending on December 13, 2032 From (and including) To (but excluding) Interest Rate June 13, 2023 June 13, 2028 5.50% per annum June 13, 2028 June 13, 2031 6.00% per annum June 13, 2031 June 13, 2032 7.50% per annum June 13, 2032 June 13, 2033 9.00% per annum (also coming soon) https://www.sec.gov/Archives/edgar/d...5368_424b2.htm

The note can be called in 2025 so it's like a hedge against rates continuing to climb to over 10% over the next 10 years.

[lordjust]

Quote:

Originally Posted by njhowie I believe this is not the thread for discussing these. These are essentially bonds. They are certainly not CDs and they carry no assurance/insurance of principal or interest.

Sorry nj you’re correct. I have two tabs open and I pasted into the wrong one.

[RetiredAndLovingIt]

Sharing from Deposit accounts

https://www.depositaccounts.com/bank...one-cu/offers/

[braumeister]

Just noticed that PenFed is finally joining the move on their money market certificates.

1 year 4.60%APY
15 months 4.65%APY

[Healthy Lifestyle]

Vanguard VMFXX 5.03% today - I sit and and watch happily.
I have trouble chasing 5.3 & 5.35% CD/Treasuries with duration risk.
Plus, the Fed speak on possible 2 more rate hikes by end of year.
What to do with cash on the sideline, or just be happy with current MM Funds?

[njhowie]

Quote:

Originally Posted by Healthy Lifestyle Vanguard VMFXX 5.03% today - I sit and and watch happily. I have trouble chasing 5.3 & 5.35% CD/Treasuries with duration risk. Plus, the Fed speak on possible 2 more rate hikes by end of year. What to do with cash on the sideline, or just be happy with current MM Funds?

Yet again, folks are getting worked up thinking they need to get the last 1/4 or 1/2 point. Why do you have trouble chasing 5.3 & 5.35% CD/Treasuries with duration risk? Not even 18 months ago they were below 1.0%.

Maybe there are 2 more hikes coming by year end, maybe not. Based on the Fed speak the past few weeks, prognosticators around here were sure that we were going to get 0.25% hike this week.

If you want longer term CDs and Treasuries in your portfolio, buy some now, don't worry about the last 1/4 or 1/2 point - it's not going to make a difference in the bigger picture of your portfolio. Buy some, don't shoot your entire wad, you can always buy more if rates continue higher. However, it's likely prudent to be locking in some duration to have these 5%+ yields guaranteed while we still have them.

What will make a difference is if rates fall back down by 25% or more and you're sitting with your MM funds waiting for the higher rate CD/Treasury which never comes. Holding out for the last 1/4 or 1/2 point is just another form of market timing, you likely won't win.

[Car-Guy]

Quote:

Originally Posted by njhowie Yet again, folks are getting worked up thinking they need to get the last 1/4 or 1/2 point. Why do you have trouble chasing 5.3 & 5.35% CD/Treasuries with duration risk? Not even 18 months ago they were below 1.0%.

Greed.... FOMO....

[jldavid47]

Quote:

Originally Posted by Healthy Lifestyle Vanguard VMFXX 5.03% today - I sit and and watch happily. I have trouble chasing 5.3 & 5.35% CD/Treasuries with duration risk. Plus, the Fed speak on possible 2 more rate hikes by end of year. What to do with cash on the sideline, or just be happy with current MM Funds?

Why are you happy? You are giving up 32 basis points of return compared to even a 3-month brokered CD today. There is virtually no duration risk 3 months out (or even 6 months out). Your disadvantaged money sitting in a MMF would have to average over 5.35% over the next 90 days which means it would have to rise to 5.67% rather quickly and that ain't happening even if the Fed raises rates in July.

Your attitude and your argument makes no sense to me. People can time interest rate peaks no better than they can time the stock market. Keep durations short? Fine. Let money rot in a MMF at a 32 basis point disadvantage in the hope you can catch an interest rate peak and do better over time? Good luck with that.

[Healthy Lifestyle]

Quote:

Originally Posted by jldavid47 Why are you happy? You are giving up 32 basis points of return compared to even a 3-month brokered CD today. There is virtually no duration risk 3 months out (or even 6 months out). Your disadvantaged money sitting in a MMF would have to average over 5.35% over the next 90 days which means it would have to rise to 5.67% rather quickly and that ain't happening even if the Fed raises rates in July. Your attitude and your argument makes no sense to me. People can time interest rate peaks no better than they can time the stock market. Keep durations short? Fine. Let money rot in a MMF at a 32 basis point disadvantage in the hope you can catch an interest rate peak and do better over time? Good luck with that.

Thanks for your words of wisdom, but I think I have a great attitude.
I have won the game and am financially in a good position to relax.
You should try it!