Best CD rates in the country ?

[jazz4cash]

I am not sure I would invest a chunk at cash for 63 months in a "potentially" rising interest rate market.

63 months.....another oddball term to maturity. If the early withdrawal penalty is not too bad you are not locked out if rates rise significantly. The EWD penalty at Andrews FCU is 6 months interest. I think there is an EWD penalty calculator around somewhere.

 

[pb4uski]

Actually the 3% for 84 months with a 6 month EWD penalty looks pretty good to me compared to intermediate-term investment-grade corporate bonds. Better return but no interest rate risk and an easy out if rates rise.

 

[aida2003]

If you have IRA Monies available, you can transfer to Andrews Federal Credit Union and get 3% for 84 months. I moved monies from Vanguard IRA with minimal issues.

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I'm guessing this is an option for people who invest their IRA's in the bonds only?

 

[thefinancebuff]

I'm guessing this is an option for people who invest their IRA's in the bonds only?

You can transfer over only part of your IRA. The rest can be in stocks or other investments. The insurance limit means you don't want to move your entire IRA anyway (assuming it's more than $200k if reinvesting interest or $250k if distributing interest).

 

[jazz4cash]

63 months.....another oddball term to maturity. If the early withdrawal penalty is not too bad you are not locked out if rates rise significantly. The EWD penalty at Andrews FCU is 6 months interest. I think there is an EWD penalty calculator around somewhere.

www.depositaccounts.com has one that looks pretty good in the >Tools and Calculators< tab. That 6 month penalty looks pretty good. I would consider buying several 84mo CDs to create a ladder using early withdrawals beyond 24 mos.

 

[John Galt III]

If you have IRA Monies available, you can transfer to Andrews Federal Credit Union and get 3% for 84 months. I moved monies from Vanguard IRA with minimal issues.

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Argghhh! Always a catch. Don't have much in IRA. Most in regular CD's and 401K.

 

[jazz4cash]

Argghhh! Always a catch. Don't have much in IRA. Most in regular CD's and 401K.

You can usually transfer/roll 401k assets into an IRA w/ no penalty. Have you checked your plan?


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[John Galt III]

You can usually transfer/roll 401k assets into an IRA w/ no penalty. Have you checked your plan?


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Thanks, Jazz4cash. I'll check into it.

 

[mickeyd]

NFCU has had some outstanding rates recently, but you need a military connection to get on board. The 2.5% 30 month CD I got in December looks better every day, but not a good as the 5% 12 month CD I had the year before.

 

[jazz4cash]

NFCU has had some outstanding rates recently, but you need a military connection to get on board. The 2.5% 30 month CD I got in December looks better every day, but not a good as the 5% 12 month CD I had the year before.

Yeah I love NFCU too but it looks like Andrews FCU has them beat right now AND they have open membership so I guess I have one more spot to bury some nuts.


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[jazz4cash]

If you have IRA Monies available, you can transfer to Andrews Federal Credit Union and get 3% for 84 months. I moved monies from Vanguard IRA with minimal issues.

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I did this today. Went into the branch and customer service was good. Thanks!


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[laurence]

Has anyone here thought about dividend bearing stocks in utilities etc. instead of CDs? At these rates, man, it's just brutal.

 

[Sunset]

Nope, but have bought some preferred utility shares as they pay 6% ->7%
I view them as my "sorta bonds".

 

[OneDay]

Has anyone here thought about dividend bearing stocks in utilities etc. instead of CDs? At these rates, man, it's just brutal.

Yes, I own T now and several other stocks that aren't utility but pay good dividends " GE, F, PFC, WFC " and will buy more or just buy VPU. But I'm looking to just park some money for a while or least not dump a large amount of money in the market all at one time. So at this point, I'll wait till September to see if the feds raise rates.

 

[VFK57]

Yes, I own T now and several other stocks that aren't utility but pay good dividends " GE, F, PFC, WFC " and will buy more or just buy VPU. But I'm looking to just park some money for a while or least not dump a large amount of money in the market all at one time. So at this point, I'll wait till September to see if the feds raise rates.

+1 I think between September and Nov election we may see some changes in Feds monetary policy.