Best places to buy Cd's online

[wolf]

Yes, I agree, it can be a pain to shop around, rather than use Schwabb,Vanguard, etc. I think it depends on the amount of money you are working with. If you have a relatively small amount it probably is not worth "shopping" around. However, in my case, a small percentage difference in return, does result in a fairly large dollar amount.

One example, I'm sure many of you are aware, Pentagon Federal Credit Union (open to all), offered 5-7yr, 6.25%, CD's about a year ago. It took a little effort to open these accounts, but the returns are well worth it. So, shopping around takes effort, but in doing so, you can get above average returns.

 

[OAG]

FDIC insurance limits: This is a little off topic here, but I was wondering if I understand something I found out yesterday correctly. Yesterday I was told at a bank that if I set up my accounts with multiple POD's (payable on death beneficiaries), that I would have more than $100,000 FDIC insurance coverage. For example, if I set up my accounts at a bank with my mother and 2 sisters as POD's, I would have $300,000 FDIC insurance coverage (instead of $100,000). This was news to me and from now on I plan on putting more than one POD on all my new accounts. Is anyone here familiar with this FDIC law/rule and am I understanding it correctly?

I actually have more than $100,000 at Key Bank, so this will put my mind at ease once I get the POD designations changed on my accounts.

Go here FDIC: Federal Deposit Insurance Corporation and use the calculator (direct link to calculator FDIC: Account Fully Insured) to determine coverage. You can get it up to $400K for two people (and $800K for three) if done correctly.

 

[FreeAtLast]

https://www.moneyaisle.com/

 

[davemartin88]

Tried to do the non registered version of the test drive on the moneyaisle site and wouldn't work this morning, interesting idea?

 

[calmloki]

https://www.moneyaisle.com/

That was kinda ebay style fun:

• Sign In
• Register
• Home

• Live Bank CD Auction: Test-Drive

• Help
• FAQ

• Pick your product
• Watch banks bid, live
• Get a great rate

And the highest
offer is...


4.34%APY









Which is under the 5% offered by WAMU and reported by bankdeals.blogspot.com for the same amount and term.

 

[Gotadimple]

Calmloki,
The WAMU offer ended last Friday, 8/29. The rate above is very good, for 13 months.

-- Rita

 

[explanade]

Hmm, I just did the Wamu 12 months at 5% online.

 

[Goonie]

Hmm, I just did the Wamu 12 months at 5% online.

Yep, just checked Wamu's site....4.89% interest rate with a 5.0% APY for 12 & 13 month online CD's. That ain't too shabby at all! Hope they have that rate (or better) when I have some spare change to get another CD.

 

[calmloki]

Calmloki,
The WAMU offer ended last Friday, 8/29. The rate above is very good, for 13 months.

-- Rita

I'm not much for research, but this guy (gal?) seems pretty on the ball - notice it was claimed as a 1 week only rate, so.... like the earlier poster said; bankdeals.blogspot.com
Think it's updated every Saturday.
Works for me (he says, with money mouldering at 3.7 with CapOne savings, cause surely the rates are going to bounce up higher pretty quick, no? Yes? I hope!).

 

[Art G]

Right now you can buy a four month WAMU cp. bond paying 24.75%. If you're willing to buy a CD, you may as well consider the corporate bond. JMO
BTW, if you're not willing to buy the corp. bond, perhaps you should be reconsidering whether or not you feel comfortable with their CD's. Just a thought.

 

[explanade]

FDIC vs no FDIC.

 

[Gotadimple]

I'm not much for research, but this guy (gal?) seems pretty on the ball - notice it was claimed as a 1 week only rate, so.... like the earlier poster said; bankdeals.blogspot.com
Think it's updated every Saturday.
Works for me (he says, with money mouldering at 3.7 with CapOne savings, cause surely the rates are going to bounce up higher pretty quick, no? Yes? I hope!).

Calmloki:
It helps to live near the bank and happen to be there to buy the CD at the 5% rate. Comment from the Customer Service Rep was that it was only good until the end of August. Comment from one CSR to the other - "we lost $10M last month."

However, block ad in today's Seattle Times shows the rate is now back on for 13 month CD's. So, must have just been on vacation for the week.

In other news, WAMU's CEO Kerry Killinger was terminated over the weekend (see the $10M comment above).

-- Rita

 

[Art G]

FDIC vs no FDIC.

Doesn't matter. Would you actually buy a 1 year CD knowing FDIC may have to step in to pay them off? You'd be losing interest, AND waiting to get paid back. So, if you think WAMU lasts a year, why not buy their bonds paying a ton more income for a much shorter period?

 

[plex]

Buying a CD vs. buying the equivalent of a junk bond from an extremely distressed company is essentially what it comes down to. It is simply a matter of risk vs. reward.

The CD has essentially no risk, you risk possibly losing a weeks worth of interest. You only get 5% over the course of the year for a return as a result. For comparison's sake, this would be a return of 1.66% over 4 months.

The corp bond has extremely high risk, you risk losing all your principle, what exactly that risk level is, who knows, but is in the very high range based on current market information. So, you get a 24.5% return over 4 months (if that is right).

So, is a huge amount of risk worth an increased return of about 22.85% over 4 months? Essentially, do you think there is a less than 22.85% chance the company will go under in 4 months? Who knows, it depends on your risk tolerance and if you know something the rest of the market doesn't, which currently believes there is a 22.85% chance of the equivalent of a total loss in the next 4 months.

 

[cute fuzzy bunny]

Someone has a fundamental disconnect on the various levels of risk associated with different investment products........

The good news is that I now have seen the second worst piece of investment advice ever. This easily replaces that comment about mutual funds all having about the same level of risk and theres no need to read the prospectus, since they all say the same thing...

 

[Gardnr]

Doesn't matter. Would you actually buy a 1 year CD knowing FDIC may have to step in to pay them off? You'd be losing interest, AND waiting to get paid back. So, if you think WAMU lasts a year, why not buy their bonds paying a ton more income for a much shorter period?

You've GOT to be kidding us, right? That's absurd. The risk of losing some small amount of interest if they fail is not even close to the risk you're talking about taking. Buying the bonds is a purely speculative play and isn't in the same ball park as buying a CD.

Surely you know that, right?

 

[calmloki]

Who was it that said return of principle was more important than return on principle? Buffet? Rockefeller? Groucho Marx or Will Rodgers? Suze Orman?

 

[Art G]

Buying a CD vs. buying the equivalent of a junk bond from an extremely distressed company is essentially what it comes down to. It is simply a matter of risk vs. reward.

The CD has essentially no risk, you risk possibly losing a weeks worth of interest. You only get 5% over the course of the year for a return as a result. For comparison's sake, this would be a return of 1.66% over 4 months.

The corp bond has extremely high risk, you risk losing all your principle, what exactly that risk level is, who knows, but is in the very high range based on current market information. So, you get a 24.5% return over 4 months (if that is right).

So, is a huge amount of risk worth an increased return of about 22.85% over 4 months? Essentially, do you think there is a less than 22.85% chance the company will go under in 4 months? Who knows, it depends on your risk tolerance and if you know something the rest of the market doesn't, which currently believes there is a 22.85% chance of the equivalent of a total loss in the next 4 months.

Well your math is wrong, but nonetheless.....apparently my point was too subtle, so let me be more blunt.
QUIT SEARCHING THE INTERNET FOR AN ADDITIONAL .2% AND INSTEAD FIND YOURSELF SOME QUALITY BANK NOT AT RISK OF DEFAULT.
Amazing, you guys get that return OF principle is paramount and yet still have a thread devoted to finding tenths of a point, even though there's a risk you'll have to wait to get your money back. Perhaps you all should go back and read the thread about how much time FDIC has to repay.

 

[plex]

Yea, I was being lazy, but the numbers sort of in the general ballpark I guess, also, the numbers didn't account for the huge difference in return caused by taxes, assuming it is in a taxable account. The point probably would have been just as clear though by snipping it down to one sentence for describing the risk difference, "potentially losing all your principle AND return vs. potentially losing a small fraction of your return and keeping your principle".

 

[Gardnr]

QUIT SEARCHING THE INTERNET FOR AN ADDITIONAL .2% AND INSTEAD FIND YOURSELF SOME QUALITY BANK NOT AT RISK OF DEFAULT.

I don't disagree with that. I guess we got lost in the "subtleties" of your post

 

[Art G]

I will try to be less subtle in the future.

 

[Art G]

Well I hope no one bought those WaMu CDs.

 

[ziggy29]

Well I hope no one bought those WaMu CDs.

Why? Especially in amounts under $100,000?

 

[cute fuzzy bunny]

The FDIC protection wasnt even used, so even deposits over 100k are still fine.

No word on whether they'll give you your CD money back, offer a lower rate or continue paying the rates given by Wamu.

Really, quite the horror show. Just like buying high risk bonds. Same thing, right?

 

[ziggy29]

The FDIC protection wasnt even used, so even deposits over 100k are still fine.

Yes -- for now. No guarantee that these assets over $100K will continue to be safe in the future. I prefer to think that those who had more than $100K at WaMu just dodged a bullet, and should use their good fortune as a second chance to do the prudent thing with their savings and spread it around to maximize their coverage by the FDIC or NCUA.