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

[imbatman]

CDs - seeing 5.3% monthly 15-year (Method Bank) and 5.25% monthly 5-year (Burke Herbert) today on Fidelity new issues. Both callable starting in a year (03/15/2024) but not too shabby starting to get back to the rates I was grabbing last fall.

 

[RetiredAndLovingIt]

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?

Sent from my SM-T510 using Early Retirement Forum mobile app

When I closed the account, it was about 2 or 3 days ater the interest had posted for this month. I meant to do it the morning of but got busy.
I had my interest posted to my share savings instead of a check and promptly had Fidelity pull it out.
I love my newish Fidelity Cash management account. When I set up a transfer the money is in my account within about 3 hours even on a weekend. I haven't tried buying until the next day but it looks like it will let me.

 

[Spock]

...
I love my newish Fidelity Cash management account. When I set up a transfer the money is in my account within about 3 hours even on a weekend...

huh... I wonder if the cash account has a special "unhindered" path for transfers while other accounts have to take a longer (skim off the float) route.

 

[simple girl]

I love my newish Fidelity Cash management account. When I set up a transfer the money is in my account within about 3 hours even on a weekend. I haven't tried buying until the next day but it looks like it will let me.

Wow! I pull money using my Citbank account, it seems to take at least a day to get there, and then they put a hold on whatever I pull for 5 business days before I can do anything with it. Would be helpful to know if Fidelity puts a hold on that $ or not - let us know when you find out please.

 

[jim584672]

When I closed the account, it was about 2 or 3 days ater the interest had posted for this month. I meant to do it the morning of but got busy.
I had my interest posted to my share savings instead of a check and promptly had Fidelity pull it out.
I love my newish Fidelity Cash management account. When I set up a transfer the money is in my account within about 3 hours even on a weekend. I haven't tried buying until the next day but it looks like it will let me.

I chatted with Fidelity today and asked about wired funds and availability. They said the funds can't be withdrawn for 5-7 business days, but are available for trading right away.

 

[audreyh1]

I chatted with Fidelity today and asked about wired funds and availability. They said the funds can't be withdrawn for 5-7 business days, but are available for trading right away.

That doesn’t match my experience. I’ve been able to transfer funds in and they are available right away, even for transfer back out.

 

[RetiredAndLovingIt]

When I closed the account, it was about 2 or 3 days ater the interest had posted for this month. I meant to do it the morning of but got busy.
I had my interest posted to my share savings instead of a check and promptly had Fidelity pull it out.

For anyone interested, here is my add-on GTE CD disclosure. I'm glad they did not invoke the 60 day written notice. I'm also including another link to a different post on the EWP.

Early Withdrawal
Withdrawals before the maturity date are subject to an early withdrawal penalty. The
credit union may require up to 60 days written notice prior to any intended withdrawal
in accordance with federal credit union bylaws. The penalty is calculated as a forfeiture
of part or all of the dividends. Withdrawals within six days of opening a certificate will
be assessed a penalty of seven days dividends which may invade principal. The penalty
applies to the amount withdrawn each time a withdrawal is made, and is based on the
dividend rate in effect at the time of the withdrawal. The penalty will equal 90 days of
dividends for accounts with terms of 12 months or less, and 180 days of dividends for
account with terms greater than 12 months

https://www.depositaccounts.com/community/ask/50490-gte-wont-waive-ewp.html

 

[explanade]

How does Fidelity know which funds to draw from?

I tried to purchase FZDXX with the balance from SPAXX, which I never chose in the first place.

But the Buy window showed funds available to invest as a CA Muni instrument.

I went to chat and they told me if I enter the total balance of SPAXX, which is less than the CA Muni investment, it will draw entirely from SPAXX.

Then supposedly it would automatically withdraw from FZDXX for all buys in the future.

 

[Car-Guy]

As of this afternoon, Schwab posted a 1yr CD offering for 5.1%, non callable with monthly interest payments. My kind of deal!

 

[jldavid47]

As of this afternoon, Schwab posted a 1yr CD offering for 5.1%, non callable with monthly interest payments. My kind of deal!

Here are the details:

Axos Bank CA 5.1% CD 03/15/2024
CUSIP: 05465DAX6

 

[Golden sunsets]

GTE CD Cancellation with no EWP

For anyone interested, here is my add-on GTE CD disclosure. I'm glad they did not invoke the 60 day written notice. I'm also including another link to a different post on the EWP.

Early Withdrawal
Withdrawals before the maturity date are subject to an early withdrawal penalty. The
credit union may require up to 60 days written notice prior to any intended withdrawal
in accordance with federal credit union bylaws. The penalty is calculated as a forfeiture
of part or all of the dividends. Withdrawals within six days of opening a certificate will
be assessed a penalty of seven days dividends which may invade principal. The penalty
applies to the amount withdrawn each time a withdrawal is made, and is based on the
dividend rate in effect at the time of the withdrawal. The penalty will equal 90 days of
dividends for accounts with terms of 12 months or less, and 180 days of dividends for
account with terms greater than 12 months

https://www.depositaccounts.com/community/ask/50490-gte-wont-waive-ewp.html

I just wanted to post that thanks to RALI's info and links, I successfully closed out the GTE Add On CD, without incurring any EWP, using the described process, over the course of the last 24 hours. My Early Withdrawal language was the same as that posted above. Woo Hoo.

 

[cbo111]

I finally scored a 5.0% 18-month noncallable brokered CD with Vanguard. The bank is Synovus.

 

[MJ]

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.

I caught this too by accident when I needed money for an all cash real estate purchase about 2 months ago. GTE is one of several CUs that allow interest from the start of the certificate to be withdrawn EWP so I withdrew all the earned interest. I then asked what was the EWP to withdraw 90K of the principal and was shocked to be told that it was ZERO. I asked, are you sure and was told yes! As they say "in for a penny, in for a pound" I then asked to withdraw the full principal balance at a ZERO EWP. I also did the same withdrawl pattern with my wife's certificate. That saved us a good $9K in potential EWP.

 

[ShokWaveRider]

Do we think there will be more 5+% Brokered CDs after March 23rd.? I am looking for 3 Years minimum to create a ladder down to 1year. I know there are 5% for 1y - 18 months, but not too many above that.

 

[Drake3287]

Do we think there will be more 5+% Brokered CDs after March 23rd.? I am looking for 3 Years minimum to create a ladder down to 1year. I know there are 5% for 1y - 18 months, but not too many above that.

Easy answer. Yes.

 

[Car-Guy]

5.2% 18 mo, non callable CD's available at Schwab today

 

[erkevin]

2 year non-callable, YTM 5.116% ID# 90355GCC8

 

[copyright1997reloaded]

Just put an order in for an 18-month, non-callable Schwab Bank 5.2%.
CUSIP is DSN315174 at Fidelity. Also appears to be available at Ameritrade, CUSIP 15987UAT5, and at Schwab itself w/same CUSIP 15987UAT5.

 

[Dash man]

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

Just put an order in for an 18-month, non-callable Schwab Bank 5.2%.
CUSIP is DSN315174 at Fidelity. Also appears to be available at Ameritrade, CUSIP 15987UAT5, and at Schwab itself w/same CUSIP 15987UAT5.

Yes, I just bought some of that myself from a T-bill that matured. It pays semiannually.

 

[pb4uski]

Today, I did a short play on ALL/PRG aka ALL+G. This is an Allstate preferred stock series that was recently called. On Apr 17 it will pay the $25 stated value and a 35c quarterly dividend... so $25.35. I bought some at the opening today for $20.15 and some later at $20.16. The XIRR for the $20.15 lots is 6.79% and the XIRR for the $20.16 lots is 6.44%, so a better return then MM albeit with negligibly higher risk.

 

[Montecfo]

Today, I did a short play on ALL/PRG aka ALL+G. This is an Allstate preferred stock series that was recently called. On Apr 17 it will pay the $25 stated value and a 35c quarterly dividend... so $25.35. I bought some at the opening today for $20.15 and some later at $20.16. The XIRR for the $20.15 lots is 6.79% and the XIRR for the $20.16 lots is 6.44%, so a better return then MM albeit with negligibly higher risk.

You bought for 20.15 and it will pay 25.35 in a month and a half?

25%+?

Looks like purchase prices off.

 

[pb4uski]

Sorry, I mistyped. The purchase prices were $25.15 and $25.16 and the call price and accrued interest in 44 days is $25.35.

 

[Car-Guy]

Apparently Schwab had either 12 or 18mo CD's available earlier today at 5.3% but they have already sold out and no longer show up on their list. Still plenty of 5.1 to 5.2's available for those terms though. My guess is we will be seeing up to 5.5% non callable CD's for 1 and 2yr terms later this month readily available.

 

[erkevin]

Praying for that Car-guy. I have about $200k in CDs maturing at the end of March, early April. I've been playing that game and I hope it is worthwhile.

 

[Car-Guy]

Me too... I have a bunch maturing later this month and more in April...