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

[Another Reader]

Big and Little banks offer CDs through brokers at higher rates, and they always have. It's one more outlet for getting cash in so they can lend it out.

- Rita

Haven't seen the big banks do it until now. Recently, many, if not most of the best rates have been from smaller, more marginal banks. Chase and Citi have not played the game to date.

 

[brucethebroker]

Probably for members of the CU that don't have a brokerage account and/or don't understand broker CD's.

Or just not paying attention....

 

[Car-Guy]

FWIW

I just stumbled into another "gotcha" on brokered CD's. So I've been buying more and more CD's that pay interest (coupon frequency) on a monthly basis rather than at maturity... So far they have been paying off like a slot machine. Right on time and for the exact amounts I have calculated.

That is until now....I have one with a bank in North Carolina (through Schwab) and the first payment was due Sunday 5/14/23. So I expected to see my account credited by Monday 5/15/23. But nothing.... Okay so I call my AE at Schwab and he looks into it and tells me that Schwab doesn't credit accounts until they receive payment from the issuing banks. Well that makes sense but how can a bank delay making payments... Isn't that default or at least a violation of the CD agreement? Well as he dug further, it seems this is not rare. According to their contracts, the issuing banks have up to 2 weeks to make interest payments after the coupon date. (Well nobody told me and it's never happen to me, but now I know)... Sounds like a good way for a bank to "float" a lot of money....

So don't be surprised when an interest payment is due or your CD reaches maturity, it may be a few more weeks before you get your money...

Have a nice day.

 

[Gotadimple]

FWIW
So don't be surprised when an interest payment is due or your CD reaches maturity, it may be a few more weeks before you get your money...

Have a nice day.

Well it's good to know there may be certain banks who are using the window for interim payments. I've never encountered this either.

But when a CD matures, I would think there would be no window and the entire deposit plus the last payment is due on maturity date.

 

[Car-Guy]

Well it's good to know there may be certain banks who are using the window for interim payments. I've never encountered this either.

But when a CD matures, I would think there would be no window and the entire deposit plus the last payment is due on maturity date.

So far that's been true on maturing CD's for me too but now I wonder if there aren't some sneaky snakes out for those too. Is everyone [-]a crook[/-] taking advantage whenever they can?

 

[RetiredAndLovingIt]

FWIW

I just stumbled into another "gotcha" on brokered CD's. So I've been buying more and more CD's that pay interest (coupon frequency) on a monthly basis rather than at maturity... So far they have been paying off like a slot machine. Right on time and for the exact amounts I have calculated.

That is until now....I have one with a bank in North Carolina (through Schwab) and the first payment was due Sunday 5/14/23. So I expected to see my account credited by Monday 5/15/23. But nothing.... Okay so I call my AE at Schwab and he looks into it and tells me that Schwab doesn't credit accounts until they receive payment from the issuing banks. Well that makes sense but how can a bank delay making payments... Isn't that default or at least a violation of the CD agreement. Well as he dug further, it seems this is not rare. According to their contracts, the issuing banks have up to 2 weeks to make interest payments after the coupon date. (Well nobody told me and it's never happen to me, but now I know)... Sounds like a good way for a bank to "float" a lot of money....

So don't be surprised when an interest payment is due or your CD reaches maturity, it may be a few more weeks before you get your money...

Have a nice day.

Can you tell us which bank that was, I've picked up a couple of banks at Fidelity that I've never heard of before and it never even occurred to me to verify amounts so now I'll need to check. I did add calendar reminders for maturity dates and so far I'm pretty sure they've all been on time.

 

[Car-Guy]

^^^^^^
Yes I can tell you... And when I get paid, I'll try to remember to update my "experience"!

First Carolina Bank NC Rocky Mount

 

[RE2Boys]

Discover hi-yield savings at 3.83% APY 3.9% this morning.

 

[stephenson]

Hi All,

Still easing into buying CDs ... today bought Zion Bank 9 month at 5.25%.

Founding listing from Fed re size of banks ... https://www.federalreserve.gov/releases/lbr/current/

Rates still creeping up?

Fidelity SPAXX 7 day yield at 4.73% today.

 

[JDARNELL]

Hi All,

Still easing into buying CDs ... today bought Zion Bank 9 month at 5.25%.

I picked up a couple of those also

 

[Car-Guy]

^^^^^^
Yes I can tell you... And when I get paid, I'll try to remember to update my "experience"!

First Carolina Bank NC Rocky Mount

After a few more calls to my AE at Schwab and I got this resolved late this afternoon. My account has been credited. I'm not sure if the bank made it's CD payment (albeit late) or if Schwab stepped up and made the payment. I guess I'll see in June when the next interest payment is due.

Anyway, just "info" for the CD buyers around here, so if/when you are hit like this, you shouldn't be too surprised.

 

[Romer]

Bought a 12 month Brokerage CD through TD Ameritrade. It is A Charles Schwab Bank CD FDIC Insured with a rate of 5.15% and APY of 5.25% and is non callable

 

[JohnDoe]

Rates still creeping up?

Doesn't seem to be on the longer term. I've been waiting to pull the trigger on the 3-5 year ones.

 

[Another Reader]

I am curious why B of A and Wells decided to get into this game. It occurred to me that they may be collecting cash to get past the debt limit debacle and any extended disruption in credit and the availability of cash. What do others think?

 

[Free bird]

I am curious why B of A and Wells decided to get into this game. It occurred to me that they may be collecting cash to get past the debt limit debacle and any extended disruption in credit and the availability of cash. What do others think?

What game is that?

 

[Another Reader]

What game is that?

Offering high yield CD's through brokers, not for their branch or other direct customers.

 

[Free bird]

Offering high yield CD's through brokers, not for their branch or other direct customers.

Wells paid out $1 billion for fraud. I’m told big banks are swimming in money but I don’t know. I’m not an analyst. Maybe they are. Is it unusual for big banks to offer competitive brokered CD rates? I don’t know. I’m new to this.

 

[RetiredAndLovingIt]

I am curious why B of A and Wells decided to get into this game. It occurred to me that they may be collecting cash to get past the debt limit debacle and any extended disruption in credit and the availability of cash. What do others think?

Yes, I think they need money in a hurry and they are paying a premium to get it.
Wells Fargo has a 6 month CD at 2.50% APY and a 1 year for 1.5% APY on their website. I picked up my 9 month brokerage CD yesterday from them for 5.15% APY

 

[dobig]

VMFXX 7 day yield 5.15%.

 

[imbatman]

nice CDs rate bump on Fido to 5.25% for Zion and Hancock Whitney (ex. DSN5H9446 12-months call protected, maturity payment)

 

[ShokWaveRider]

Zion is B- and Hancock is B+

Not that it matters as they are FDIC insured.

 

[stephenson]

SWR,

Where do you find ratings (and who rates) on these CD issuer banks?

 

[Car-Guy]

^^^^^^
You might want to try this one.... https://www.bauerfinancial.com/star-ratings/


I use it before buying any brokered CD's. Is it any good? Heck if I know but I'm using it anyway.

 

[Dash man]

I bought a $10k 5yr 5.1% CD through Schwab from First Bank of the Lakes in Missouri today. It’s callable in a year, but a year at 5.1% is still not bad.

 

[ShokWaveRider]

SWR,

Where do you find ratings (and who rates) on these CD issuer banks?

There are lots but these are what I use. They are less liberal with theirs.

https://weissratings.com/en/search?o=total-assets-safety+desc&p=1&q=type(bank