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

[Chuckanut]

I think it's the 5 years that is pretty iffy. Short-term CDs at 5% are pretty likely this year. But, I think I'd rather keep my money available in my money market settlement account than buy very short-term CDs.

I just had a CD roll over. Even CDs with only a 2 year duration are starting to become callable. The yield on a callable 2 year CD is 0.1% more this morning. Not enough, IMO. I bought a non callable CD.

 

[jazz4cash]

Navy Federal Credit Union has 15 month 5% CD available. These short term CD's are generally not attractive to me but this one has my attention.

Edit: Will be available Jan 9th

 

[ReadyNotReady]

Western State bank has a HYMM for 4.25% https://apps.westernbanks.com/

 

[RetiredAndLovingIt]

With all the 4%+ short term CD's available at Fidelity I decided to ladder one per month for income instead of holding the cash in my Discover savings account at a lower rate. I have a bunch of large CD's maturing this year so I'll continue that strategy and lock in 2-3 years of income as long as these rates stay high and I'll also have a stash to invest in Treasuries and long term CD opportunities as they show up. (If they show up!!)

 

[njhowie]

With all the 4%+ short term CD's available at Fidelity I decided to ladder one per month for income instead of holding the cash in my Discover savings account at a lower rate. I have a bunch of large CD's maturing this year so I'll continue that strategy and lock in 2-3 years of income as long as these rates stay high and I'll also have a stash to invest in Treasuries and long term CD opportunities as they show up. (If they show up!!)

If you're buying maturities 1 year or less, then treasuries have better yields at this time.

 

[oiseux]

With all the 4%+ short term CD's available at Fidelity I decided to ladder one per month for income instead of holding the cash in my Discover savings account at a lower rate. I have a bunch of large CD's maturing this year so I'll continue that strategy and lock in 2-3 years of income as long as these rates stay high and I'll also have a stash to invest in Treasuries and long term CD opportunities as they show up. (If they show up!!)

I'm doing the same thing, except with a one year offset. I'm trying to shift income out of this year. I also saw the Treasuries are pretty compelling right now as well, especially for my high tax state.

 

[explanade]

Navy Federal Credit Union has 15 month 5% CD available. These short term CD's are generally not attractive to me but this one has my attention.

Edit: Will be available Jan 9th

What are the membership requirements, Navy vet or active service or family member?

 

[wrigley]

What are the membership requirements, Navy vet or active service or family member?

Any branch of the military active or vet. Yes, if you have a family member that is a NFCU member you can join through them. I've been a member since the late 80's and at that time the only way you could join was you had to be stationed overseas. I'm sure there are other ways now you could join. They are the largest CU in the world, and If I'm not mistaken, the second largest financial institution behind JP Morgan Chase.

Mike

 

[pb4uski]

... They are the largest CU in the world, and If I'm not mistaken, the second largest financial institution behind JP Morgan Chase.



Mike

While NFCU is the world's largest CU with about $160 billion in assets, the second part isn't even close to being right. The 100th largest bank in the world is Quatar National Bank with $300 billion in assets, almost twice the size of NFCU. The world's largest banks are in China. JPM ranks 5th largest in the world with $3.7 trillion in assets.

At $160 billion, NFCU would be about the same size as the 25th largest US bank.

 

[REWahoo]

Navy Federal Credit Union has 15 month 5% CD available. These short term CD's are generally not attractive to me but this one has my attention.

Edit: Will be available Jan 9th

This CD went live today. From the NFCU website:

Open with as little as $50. You can keep adding money up to $250,000. Don’t wait—offer ends by April 30, 2023!

 

[Car-Guy]

So looking at the "tons" of brokered CD's available today, it makes me wonder why very short term CD's (3 to 9 mos) pay less than mid term CD's (12 to 18 mos). I understand why the longer term rates (fed policy/statements create the inverted curve) pay less than the mid term rates, but it seems odd to me that shorter term rates pay less than mid term rates. (If that all make sense) It's not a lot but it seems to me short term rates should be at least the same as mid terms...

I mean, if I buy a 1yr CD for 4.6%, why wouldn't the same bank be willing to pay the same rate of return for a 6mo CD... Just seems odd to me.

 

[calmloki]

So looking at the "tons" of brokered CD's available today, it makes me wonder why very short term CD's (3 to 9 mos) pay less than mid term CD's (12 to 18 mos). I understand why the longer term rates (fed policy/statements create the inverted curve) pay less than the mid term rates, but it seems odd to me that shorter term rates pay less than mid term rates. (If that all make sense) It's not a lot but it seems to me short term rates should be at least the same as mid terms...

I mean, if I buy a 1yr CD for 4.6%, why wouldn't the same bank be willing to pay the same rate of return for a 6mo CD... Just seems odd to me.

Maybe the bank isn't eager to spend the same amount of work to lock up your money for 1/2 the time?

If I was lending $100 over the course of a year I'd rather make one loan than two.

Pure guess here.

edit: never mind - you said brokered CDs. Maybe the purchaser wants to work less and make fewer transactions to get that $100 invested over a year.

 

[njhowie]

So looking at the "tons" of brokered CD's available today, it makes me wonder why very short term CD's (3 to 9 mos) pay less than mid term CD's (12 to 18 mos). I understand why the longer term rates (fed policy/statements create the inverted curve) pay less than the mid term rates, but it seems odd to me that shorter term rates pay less than mid term rates. (If that all make sense) It's not a lot but it seems to me short term rates should be at least the same as mid terms...

I mean, if I buy a 1yr CD for 4.6%, why wouldn't the same bank be willing to pay the same rate of return for a 6mo CD... Just seems odd to me.

At the end of the day, it's a function of what the bank believes it has to pay to have sufficient demand for those CDs.

Additionally, in my view, those shorter terms are closer in concept to basic savings accounts and money market accounts as far as how long the money is locked up, so should have yields above those, but closer to them than anything longer term.

Let's take it a step further...why would those same 3-9 month CDs be paying less than equivalent maturity treasuries?

 

[RetiredAndLovingIt]

This CD went live today. From the NFCU website:

Share certificate only, not available for IRA certificate. I do love that it's an add-on, I have a lot of CD's maturing this year so it's there if nothing better comes up.
Navy usually offers a really good IRA CD rate around this time every year so here's hoping it's even better than this one.

Navy alos still allows add-ons on all your IRA CD's during tax season. It's not such a deal in this rising rate environment but still good information to keep in mind, they allow it every year during tax season.
As per Sandy, IRA CSR, Navy FCU Announcement today 12/30/2022 at 1:35 p.m. est. In 2023, IRA add-on requests can be processed from 01/04/2023 and the tax filing date of 04/18/2023. IRA back office can process IRA add-on requests from 04/19/2023 through 04/30/2023. To clarify add-ons can be either new contributions or existing funds that are maturing during the add-on period.

 

[Car-Guy]

Maybe the bank isn't eager to spend the same amount of work to lock up your money for 1/2 the time?

edit: never mind - you said brokered CDs. Maybe the purchaser wants to work less and make fewer transactions to get that $100 invested over a year.

Maybe, but I'm buying 50k at a time, and from my POV it's just a few mouse clicks. And I'm sure it's all being done by a computer program in the back ground, so I'd think there is "little to no effort" involved once the CD offer has been made.

At the end of the day, it's a function of what the bank believes it has to pay to have sufficient demand for those CDs.

Additionally, in my view, those shorter terms are closer in concept to basic savings accounts and money market accounts as far as how long the money is locked up, so should have yields above those, but closer to them than anything longer term.

Probably.

 

[Freedom56]

With MM funds now paying 4.26% and rising with short term treasuries, you are not really penalized for waiting. It's not like last January when money market funds were paying just .02%. As long as you have your cash invested in a high yielding MM fund, you can still earn income while you wait to lock your CD yields. It's not like rates are heading to zero anytime soon. We are reverting back to normal rates.

 

[pb4uski]

... We are reverting back to normal rates.

I hope that you are right and think that is where we are headed. 5% on the 5 year Treasury for a sustained period? What do ya think?

 

[NomDeER]

With MM funds now paying 4.26% and rising with short term treasuries, you are not really penalized for waiting. It's not like last January when money market funds were paying just .02%. As long as you have your cash invested in a high yielding MM fund, you can still earn income while you wait to lock your CD yields. It's not like rates are heading to zero anytime soon. We are reverting back to normal rates.

Does this make sense only for the short term or do you think this makes sense for three years and beyond?

With all the 4%+ short term CD's available at Fidelity I decided to ladder one per month for income instead of holding the cash in my Discover savings account at a lower rate. I have a bunch of large CD's maturing this year so I'll continue that strategy and lock in 2-3 years of income as long as these rates stay high and I'll also have a stash to invest in Treasuries and long term CD opportunities as they show up. (If they show up!!)

I have a Discover savings account. I used to keep most of my cash there because it paid more than my money market account. Now, though, the brokerage settlement account is paying more than my Discover savings account. The Vanguard settlement account is paying 4.22%. (I would think that Fidelity's settlement account and money markets are ipaying more than your Discover account, too.) That is likely to go up when the Fed increases rates over the next couple of the months. Personally, I see no reason to lock in my cash for the very short term because the very short-term CD yields don't seem likely to give me any more than my money market will yield during that period. I'll have cash available in case there are good options.

 

[GenXguy]

Any branch of the military active or vet.

That's what I thought from what I read when first looking into signing up a couple years ago, and I was not active or a veteran. However, long ago, I was active duty for reserve training and a reservist for about 6 years with honorable discharge about 30 years ago. NFCU let me sign up despite not being active or a vet. Also I had no family members with NFCU.

 

[CardsFan]

That's what I thought from what I read when first looking into signing up a couple years ago, and I was not active or a veteran. However, long ago, I was active duty for reserve training and a reservist for about 6 years with honorable discharge about 30 years ago. NFCU let me sign up despite not being active or a vet. Also I had no family members with NFCU.

It is even easier than that. My dad served in WWII, but I had no records. I gave some bare bones info, and Presto, they let me join.

 

[jazz4cash]

This CD went live today. From the NFCU website:

Thanks, that’s great info. The NFCU app does not state the expiry or that it is an add-on…..that’s a big deal. I had not gotten around to looking on the web to confirm details.

 

[Freedom56]

I hope that you are right and think that is where we are headed. 5% on the 5 year Treasury for a sustained period? What do ya think?

I think we will see the 10 year treasury around 4.6%. That's about where it was prior to the 2008/9 financial crisis. I would take clues from what the Fed says.

 

[Freedom56]

Does this make sense only for the short term or do you think this makes sense for three years and beyond?




I have a Discover savings account. I used to keep most of my cash there because it paid more than my money market account. Now, though, the brokerage settlement account is paying more than my Discover savings account. The Vanguard settlement account is paying 4.22%. (I would think that Fidelity's settlement account and money markets are ipaying more than your Discover account, too.) That is likely to go up when the Fed increases rates over the next couple of the months. Personally, I see no reason to lock in my cash for the very short term because the very short-term CD yields don't seem likely to give me any more than my money market will yield during that period. I'll have cash available in case there are good options.

This makes sense for the short term while the Fed keeps raising rates. It gives you liquidity and flexibility to lock in the durations when the deals arrive. Right now CDs make no sense relative to treasury yields.

 

[almost there]

Navy Federal Credit Union has 15 month 5% CD available. These short term CD's are generally not attractive to me but this one has my attention.

Edit: Will be available Jan 9th

Plus the ability to consolidate any existing CD there to a longer duration with no penalty. So an old 1,2,3,4, 5 yr. can go into a new 4.2% 5 yr. with no penalty.

Just consolidated (4) Navy roth ira's into (2) 7 yr at 4.25%
So I can forget about those for a while.

And opened 2 15 mo. at 5%.
Its like the wild west at Navy right now. LOL LOL
1 hr wait time if you call in though.

 

[Montecfo]

I think we will see the 10 year treasury around 4.6%. That's about where it was prior to the 2008/9 financial crisis. I would take clues from what the Fed says.

Take them with a grain of salt. Anyone remember what their dots said in late 2021?

said right now Fed Funds would be at .75 or so.

https://www.forexlive.com/centralba...-and-dot-plot-september-2021-meeting-20210922

Does anyone remember when they said they would keep rates low through 2023?

https://www.nytimes.com/2020/09/16/business/economy/federal-reserve-interest-rates.html

If you believe the Fed can forecast accurately, you have lost a lot of money.