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Old 11-01-2017, 09:29 AM   #41
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I see i-bond rates are up to 2.58 percent today. 0.10 percent fixed rate, 2.48 percent inflation.
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Old 11-01-2017, 10:09 AM   #42
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Agreed... so I only put money in there that I don't think I will need and in $50k increments so if it ends up that I do need it I don't have to break the whole thing.
Exactly!
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Old 11-01-2017, 10:14 AM   #43
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I did $5k CDs. Makes for a thick statment. Looks more impressive.
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Old 11-01-2017, 10:17 AM   #44
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I did $5k CDs. Makes for a thick statment. Looks more impressive.
Some banks like Ally pay you a higher rate for minimum $25K, so that's usually my denomination.
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Old 11-01-2017, 10:18 AM   #45
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2.38% inflation. It only took 4 rounds of QE to get it. My 3% base rate ibonds are lookin juicy.
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Old 11-01-2017, 10:20 AM   #46
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I do CUs only. No banks.
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Old 11-01-2017, 10:25 AM   #47
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I dumped GE Capital when they were bought out by Goldman Sachs. I figured GS would not invest much effort in the platform and be less than friendly to the little people.

Today I decided to open up a small one year CD at 1.65 percent to see how they do. So far, the platform seems well designed and easy to use. They had all my GE Capital info in their database, so it was easy to open the account.

My 11 month no penalty CD at Ally expires this month. The account is not large enough to qualify for the 1.5 percent at renewal. That money will go back into the savings account or into another CD at an institution with better CD rates.

Hoping some 3 percent CD's show up by the end of December so I can commit more money to them.
I was thinking the same as you wrt GE Cap transition to GS Bank, but stuck with them to see how they would do. They've been fine so far. The only objection I have is they don't offer IRA (just like GE Cap). I asked if they might be offering IRA anytime soon and response was negative so I started moving to Ally but haven't gotten around to closing the GS Bank acct.
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Old 11-01-2017, 10:51 AM   #48
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Bought a couple of 5-year CDs at 2.4% this morning. All of the 7-year CDs that I purchased from USAA in 2010 (at 3.65%) have matured and their current rates are not competitive at all, so I am looking for other opportunities. Still have some 10-year CDs at 5% from PenFed (maturing in 3 years). I jumped on Andrews FCU's 5-year CD at 3% last year. Overall, my CD ladder still pays a decent 3.5% for an average maturity of 3.7 years. Hoping for some good end-of-year deals.

I-bonds remain competitive.
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Old 11-01-2017, 11:03 AM   #49
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Fed expected to raise in Dec. Should jack short CDs up again. Long end not responding.
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Old 11-01-2017, 11:18 AM   #50
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Can we please keep this thread on point. It is very useful to those of us who like fixed income options and have some free cash to put to work. While what was available last year, 5 or 10 years ago is somewhat interesting. I would like to see more relevant posts.

Great information would be: Institution, Rate(s), Duration(s) & Minimum Investment & when the offer will expire if applicable.
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Old 11-01-2017, 02:17 PM   #51
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I don't get the point of a no-penalty CD. What's the difference between that and a savings account?
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Old 11-01-2017, 02:38 PM   #52
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With a savings account you can make additional deposits and withdrawals at will... not so with a CD... even a no-penalty CD.
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Old 11-01-2017, 02:49 PM   #53
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I don't get the point of a no-penalty CD. What's the difference between that and a savings account?
You are usually offered a higher rate.
You lock in that rate for the term.
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Old 11-02-2017, 09:29 AM   #54
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You are usually offered a higher rate.
You lock in that rate for the term.
Right, but what's in it for the bank?

I promise not to make any more deposits in this account, and I say that I *hope* to keep the money in there for xx months, but no penalty if I don't.

If rates go up, I just withdraw and re-deposit at the higher rate. If rates go down, I keep my money in the higher-rate account.

It's a lose-lose for the bank, right?

I'm not accustomed to seeing banks do things which benefit me, at their expense.
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Old 11-02-2017, 09:49 AM   #55
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Right, but what's in it for the bank?

I promise not to make any more deposits in this account, and I say that I *hope* to keep the money in there for xx months, but no penalty if I don't.

If rates go up, I just withdraw and re-deposit at the higher rate. If rates go down, I keep my money in the higher-rate account.

It's a lose-lose for the bank, right?

I'm not accustomed to seeing banks do things which benefit me, at their expense.
No, it's more like a win-win for the bank and customer.

Obviously banks don't think interest rates will zoom up, and they know most folks are lazy.
What this means is most folks will deposit the money, and even more folks than normal will deposit money as it is risk free. So the bank gets lots of cd money deposited which is more stable money.

Then most of the money will sit there for the full term and the bank gets to loan out this money at much higher rates.
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Old 11-02-2017, 09:57 AM   #56
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Right, but what's in it for the bank?

I promise not to make any more deposits in this account, and I say that I *hope* to keep the money in there for xx months, but no penalty if I don't.

If rates go up, I just withdraw and re-deposit at the higher rate. If rates go down, I keep my money in the higher-rate account.

It's a lose-lose for the bank, right?

I'm not accustomed to seeing banks do things which benefit me, at their expense.
Banks are trying to attract more deposits. They are probably "banking" on those deposits being sticky.
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Old 11-02-2017, 09:23 PM   #57
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Right, but what's in it for the bank?



I promise not to make any more deposits in this account, and I say that I *hope* to keep the money in there for xx months, but no penalty if I don't.



If rates go up, I just withdraw and re-deposit at the higher rate. If rates go down, I keep my money in the higher-rate account.



It's a lose-lose for the bank, right?



I'm not accustomed to seeing banks do things which benefit me, at their expense.


I think it may attract a bit of money that's on the margin. I might deposit more in a no penalty CD if I know I can get it out in case of an emergency or higher rates. The bank gambles that most of these depositors at least have a desire to leave the funds in the account for the full term as opposed to a regular savings account that might get used as a piggy bank.
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Old 11-03-2017, 12:58 AM   #58
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My Dad just moved a big chunk to Chase for FDIC insurance coverage. What their savings and CD’s pay is still criminal woefully uncompetitive.
We left Chase about 2 years ago, and also love Ally. Local Chase branches began browbeating people in line for tellers to use the in-lobby ATM's. If you declined, the "line manager" then began talking down to you like you could not understand computers and offered to walk you through it. Closing the drive through windows was the last straw. We complained-no one listened. I see where they have now re-opened drive through service. Too little-too late.
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Old 11-10-2017, 08:16 AM   #59
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Chase rates are horrible, probably the lowest I've ever seen. I enjoyed their new account bonuses this year though. I opened accounts for the convenience of paying credit cards plus transferring funds to one sibling.
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Old 11-10-2017, 10:55 AM   #60
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My current cutoff for CDs is 2.5%, for no more than 3 years. If I can't find such a deal, I'll use I Bonds or short term bond funds instead.
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