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

[FiveDriver]

Question about Fidelity's Cash Management Acct --

Do they still offer a Bonus for opening and depositing new money ??
What Interest Rate are they currently paying on this CMA ??
Does this Rate move in step with rising Fed Rates ??

I will call Fido's Customer Service over the weekend.....don't want to dial into a frenzied trading day.

 

[Spock]

Question about Fidelity's Cash Management Acct --

Do they still offer a Bonus for opening and depositing new money ??
What Interest Rate are they currently paying on this CMA ??
Does this Rate move in step with rising Fed Rates ??

I will call Fido's Customer Service over the weekend.....don't want to dial into a frenzied trading day.

https://www.fidelity.com/cash-management/fidelity-cash-management-account/overview

 

[FiveDriver]

Thanks Spock. I did find it on their website.

I was hoping that they were paying interest in the 4% range....not just 2.34%. I would like to just keep my RMD withdrawals in Fidelity, since we don't really need it at this time. I may transfer the RMD into my Individual Acct at Fido and transfer locally as necessary.

Pleliminary Discussion Phase only, at this time.

 

[Marc]

Thanks Spock. I did find it on their website.

I was hoping that they were paying interest in the 4% range....not just 2.34%. I would like to just keep my RMD withdrawals in Fidelity, since we don't really need it at this time. I may transfer the RMD into my Individual Acct at Fido and transfer locally as necessary.

Pleliminary Discussion Phase only, at this time.

When I had $100K to establish FXDXX I opened that in my brokerage account. I then move money from that account to the CMA as needed. Current FZDXX in taxable account is down to $30K which will be refreshed from my rollover IRA FZDXX position later in the year. I like getting 4.47% (currently) on FZDXX and the CMA interest is at least better than an extra hole in the head. I established the CMA account in 2006 and have not had any other checking accounts since 2007; I have been pleased.

 

[Car-Guy]

Realistically we'll be looking at 5.10% to 5.20% by the end of March assuming the Feds do another .25% increase like most people expect. The majority of brick and mortar banks and S&L's are still below 5%. Obviously the 3 big online banks are all offering 5% now.

I would not be surprised to see the Fed bump it another .5% at the next meeting... From my POV it's a 50/50 chance at this time between .25 and .5.

 

[audreyh1]

Thanks Spock. I did find it on their website.

I was hoping that they were paying interest in the 4% range....not just 2.34%. I would like to just keep my RMD withdrawals in Fidelity, since we don't really need it at this time. I may transfer the RMD into my Individual Acct at Fido and transfer locally as necessary.

Pleliminary Discussion Phase only, at this time.

You will be able to buy MM funds like Fidelity Govt Cash Reserves which yields over 4%. Fidelity automatically draws from these other MM funds when the core is depleted.

 

[njhowie]

Thanks Spock. I did find it on their website.

I was hoping that they were paying interest in the 4% range....not just 2.34%. I would like to just keep my RMD withdrawals in Fidelity, since we don't really need it at this time. I may transfer the RMD into my Individual Acct at Fido and transfer locally as necessary.

Pleliminary Discussion Phase only, at this time.

You can buy any Fidelity money fund you like in the CMA. Just enter a buy order with all the cash for SPRXX which is above 4% or any of the others that are.

 

[Drake3287]

I would not be surprised to see the Fed bump it another .5% at the next meeting... From my POV it's a 50/50 chance at this time between .25 and .5.

Your correct in your thinking. Almost every financial expert not tied to the government agrees that a full .50% is needed and probably should have been done last time. Unfortunately politics do play into what the Feds do to some degree even though they'll suppose to be an independent body.

 

[Earl E Retyre]

I see a 5.25% 5 year CD on Vanguard. It is callable after 1 year and looking at Yelp reviews, the bank has some very poor comments. So, I am not going to buy. But nice to see 5.25%. Hoping to see more soon.

 

[RetiredAndLovingIt]

The Navy Federal 15 Month 5% add-on CD (Non IRA) offer is now scheduled to expire on March 5, 2023 instead of the original expiration date of 4/30/23.

The last time I talked to them they told me to look for an IRA deal in the middle of tax season. She said they were not given a specific date but to start looking around the end of February, beginning of March. The way I see it, the longer we wait, the higher the rate will be.

 

[RetiredAndLovingIt]

I'm posting this for anyone that's locked into the add-on CD's that GTE Financial offered back in 2019 but it probably applies to most of their CD's opened prior to this year. If interested check your CD disclosure.

Their has been many threads over on depositaccounts.com regarding EWP policy and a poster SouthernGirl explains how to do it with zero EWP and it worked for me.

https://www.depositaccounts.com/community/ask/50021-gte-early-withdrawal-penalty.html

This is the post that explains it all and I followed it to the letter and it worked for me via their chat feature with no hassle whatsoever. I pulled out 100K the first time a few weeks ago and then chatted with them again yesterday and closed the CD out entirely.
IGR,
Have you received the dividends monthly? If not, withdraw the dividends that have been posted. It is so simple to have GTE to mail a check for dividends. Confirm that the principal balance is your original amount that you opened it for originally. After the dividends have been paid to you, there will be no dividends to take a 180-day dividend penalty. There should be no loss of principal. Confirm that the closing amount is equal to the principal and plus interest that is accrued and close the CD. According to GTE Truth and Savings disclosure, there is a 180-day dividend penalty. It does not disclose a principal penalty or a principal loss. Do not argue. On day one, just ask for the dividend withdrawal. On day two, just ask for the closing amount. If you agree, then close the CD.

GTE is aware of this loophole and have since changed their disclosure this year for any new CD's. They are also now allowing you to upgrade to their current specials, originally it was only new money when I inquired last month which is why I closed the entire CD and was lucky enough to move it all to a 6% CD elsewhere.

 

[Dtail]

I'm posting this for anyone that's locked into the add-on CD's that GTE Financial offered back in 2019 but it probably applies to most of their CD's opened prior to this year. If interested check your CD disclosure.

Their has been many threads over on depositaccounts.com regarding EWP policy and a poster SouthernGirl explains how to do it with zero EWP and it worked for me.

https://www.depositaccounts.com/community/ask/50021-gte-early-withdrawal-penalty.html

This is the post that explains it all and I followed it to the letter and it worked for me via their chat feature with no hassle whatsoever. I pulled out 100K the first time a few weeks ago and then chatted with them again yesterday and closed the CD out entirely.
IGR,
Have you received the dividends monthly? If not, withdraw the dividends that have been posted. It is so simple to have GTE to mail a check for dividends. Confirm that the principal balance is your original amount that you opened it for originally. After the dividends have been paid to you, there will be no dividends to take a 180-day dividend penalty. There should be no loss of principal. Confirm that the closing amount is equal to the principal and plus interest that is accrued and close the CD. According to GTE Truth and Savings disclosure, there is a 180-day dividend penalty. It does not disclose a principal penalty or a principal loss. Do not argue. On day one, just ask for the dividend withdrawal. On day two, just ask for the closing amount. If you agree, then close the CD.

GTE is aware of this loophole and have since changed their disclosure this year for any new CD's. They are also now allowing you to upgrade to their current specials, originally it was only new money when I inquired last month which is why I closed the entire CD and was lucky enough to move it all to a 6% CD elsewhere.

Wow is this timely, as wanted to cancel the CD, but didn't want the penalty. Was already going to take out the dividends.
As us owners know, this was a fantastic deal back in 2019, but not so much now.
Great find.

 

[simple girl]

I'm posting this for anyone that's locked into the add-on CD's that GTE Financial offered back in 2019 but it probably applies to most of their CD's opened prior to this year. If interested check your CD disclosure.

Their has been many threads over on depositaccounts.com regarding EWP policy and a poster SouthernGirl explains how to do it with zero EWP and it worked for me.

https://www.depositaccounts.com/community/ask/50021-gte-early-withdrawal-penalty.html

This is the post that explains it all and I followed it to the letter and it worked for me via their chat feature with no hassle whatsoever. I pulled out 100K the first time a few weeks ago and then chatted with them again yesterday and closed the CD out entirely.
IGR,
Have you received the dividends monthly? If not, withdraw the dividends that have been posted. It is so simple to have GTE to mail a check for dividends. Confirm that the principal balance is your original amount that you opened it for originally. After the dividends have been paid to you, there will be no dividends to take a 180-day dividend penalty. There should be no loss of principal. Confirm that the closing amount is equal to the principal and plus interest that is accrued and close the CD. According to GTE Truth and Savings disclosure, there is a 180-day dividend penalty. It does not disclose a principal penalty or a principal loss. Do not argue. On day one, just ask for the dividend withdrawal. On day two, just ask for the closing amount. If you agree, then close the CD.

GTE is aware of this loophole and have since changed their disclosure this year for any new CD's. They are also now allowing you to upgrade to their current specials, originally it was only new money when I inquired last month which is why I closed the entire CD and was lucky enough to move it all to a 6% CD elsewhere.

Wow, thank you so much!!! Extremely timely for us as well!

 

[calmloki]

I'm posting this for anyone that's locked into the add-on CD's that GTE Financial offered back in 2019 but it probably applies to most of their CD's opened prior to this year. If interested check your CD disclosure.

Their has been many threads over on depositaccounts.com regarding EWP policy and a poster SouthernGirl explains how to do it with zero EWP and it worked for me.

https://www.depositaccounts.com/community/ask/50021-gte-early-withdrawal-penalty.html

This is the post that explains it all and I followed it to the letter and it worked for me via their chat feature with no hassle whatsoever. I pulled out 100K the first time a few weeks ago and then chatted with them again yesterday and closed the CD out entirely.
IGR,
Have you received the dividends monthly? If not, withdraw the dividends that have been posted. It is so simple to have GTE to mail a check for dividends. Confirm that the principal balance is your original amount that you opened it for originally. After the dividends have been paid to you, there will be no dividends to take a 180-day dividend penalty. There should be no loss of principal. Confirm that the closing amount is equal to the principal and plus interest that is accrued and close the CD. According to GTE Truth and Savings disclosure, there is a 180-day dividend penalty. It does not disclose a principal penalty or a principal loss. Do not argue. On day one, just ask for the dividend withdrawal. On day two, just ask for the closing amount. If you agree, then close the CD.

GTE is aware of this loophole and have since changed their disclosure this year for any new CD's. They are also now allowing you to upgrade to their current specials, originally it was only new money when I inquired last month which is why I closed the entire CD and was lucky enough to move it all to a 6% CD elsewhere.

Ouch. I cashed in our fat addon 3%CD on 9/28. Paid the penalty and started plugging money into Treasuries. AAh well, good for others.

 

[Earl E Retyre]

Ouch. I cashed in our fat addon 3%CD on 9/28. Paid the penalty and started plugging money into Treasuries. AAh well, good for others.

We did the same thing. Wish I would have known.

 

[Chuckanut]

We did the same thing. Wish I would have known.

We all make mistakes. Sometimes the best decision ends up not being the right decision. But at that time, it was probably the best decision you could make without being able to accurately predict the future. You modified, adapted and moved on. That's the secret to long-term success.

 

[RetiredAndLovingIt]

I'd never heard of this before either but apparently it has been policy in the past with some institutions although that has changed in recent years. I will be reading all my CD disclosures more carefully from now on. Knowledge is power.

 

[audreyh1]

Seriously? They allow this huge loophole?

 

[Dtail]

Seriously? They allow this huge loophole?

Well that would just be the 2nd large error in judgment that GTE made with this CD issuance.
Allowing unlimited add on monies in an initial already above market yield at the time was not the smartest risk management choice.

 

[RetiredAndLovingIt]

And the 3rd mistake was when they tried to cancel allowing add-ons and the outcry was so massive that they quickly reversed that decision.

 

[pb4uski]

I see a 5.25% 5 year CD on Vanguard. It is callable after 1 year and looking at Yelp reviews, the bank has some very poor comments. So, I am not going to buy. But nice to see 5.25%. Hoping to see more soon.

What relevance do Yelp bank reviews have to buying a brokered CD?

 

[Earl E Retyre]

What relevance do Yelp bank reviews have to buying a brokered CD?

Almost zero relevance since I would be dealing with Vanguard and Vanguard would be dealing with the bank. The main reason for me not selecting the CD was the callability after 1 year (not the Yelp reviews).

The Yelp reviews were so awful that I figured I would mention it. But, if the bank made mistakes and if they have poor customer service fixing their issues, then that would all be handled between Vanguard and the bank. That to me, is one of the pros to buying brokered CDs. I do not have deal directly with the banks.

Honestly, if the CD were not callable, even with all the awful reviews, while I would not bank directly with the bank, I would still purchase the CD as a brokered CD through Vanguard.

 

[yhoomajor]

SWVXX MM rate is around 4.47%. Does anyone know if this is taxed as dividends? or interest income?

 

[jldavid47]

SWVXX MM rate is around 4.47%. Does anyone know if this is taxed as dividends? or interest income?

Ordinary, non-qualified dividends

 

[Golden sunsets]

I'm posting this for anyone that's locked into the add-on CD's that GTE Financial offered back in 2019 but it probably applies to most of their CD's opened prior to this year. If interested check your CD disclosure.



Their has been many threads over on depositaccounts.com regarding EWP policy and a poster SouthernGirl explains how to do it with zero EWP and it worked for me.



https://www.depositaccounts.com/community/ask/50021-gte-early-withdrawal-penalty.html



This is the post that explains it all and I followed it to the letter and it worked for me via their chat feature with no hassle whatsoever. I pulled out 100K the first time a few weeks ago and then chatted with them again yesterday and closed the CD out entirely.

IGR,

Have you received the dividends monthly? If not, withdraw the dividends that have been posted. It is so simple to have GTE to mail a check for dividends. Confirm that the principal balance is your original amount that you opened it for originally. After the dividends have been paid to you, there will be no dividends to take a 180-day dividend penalty. There should be no loss of principal. Confirm that the closing amount is equal to the principal and plus interest that is accrued and close the CD. According to GTE Truth and Savings disclosure, there is a 180-day dividend penalty. It does not disclose a principal penalty or a principal loss. Do not argue. On day one, just ask for the dividend withdrawal. On day two, just ask for the closing amount. If you agree, then close the CD.



GTE is aware of this loophole and have since changed their disclosure this year for any new CD's. They are also now allowing you to upgrade to their current specials, originally it was only new money when I inquired last month which is why I closed the entire CD and was lucky enough to move it all to a 6% CD elsewhere.

Wow. Thank you RALI. I've been chomping at the bit to cash in a rather large CD from GTE that we initially purchased in 2019 at 2.94% as part of a 5 year CD ladder. We subsequently added to the CD twice in subsequent years as rates were so low that investing the maturing funds out another 5 years seemed unwise. So 3 of our 5 years of laddering are in this account which matures this August. I've been planning on redeploying the funds in CD's due in 2026, 2027 and 2028 at maturity or sooner, if the "When break a CD" tool shows a positive result. I'll have to search my email to see if I can find the initial disclosure. I gather it's important to do the final close out the day after pulling out the accrued interest, so that no more interest is accrued. I wondered if it is possible to have the accrued interest moved over to the share account rather than sent via check. Same with the principle funds the day after. Any thoughts on using that method of extracting without an ewp?

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