End of Year CD Deals

[pb4uski]

+1 Looks fishy. First Financial Guarantee is NOT a bank... they are probably just a selling agent... but I am very skeptical that a legitimate FDIC insured bank would be offering a 4.25% one-year CD.

 

[aja8888]

Anyone remember Allen Stanford's Bank of Antigua 12% Cd's?

https://en.wikipedia.org/wiki/Allen_Stanford

In early 2009, Stanford became the subject of several fraud investigations, and on February 17, 2009, was charged by the U.S. Securities and Exchange Commission (SEC) with fraud and multiple violations of U.S. securities laws for alleged "massive ongoing fraud" involving $7 billion in certificates of deposits.

 

[MRG]

Anyone remember Allen Stanford's Bank of Antigua 12% Cd's?

https://en.wikipedia.org/wiki/Allen_Stanford

No but I remember getting a call from a support guy to ensure what they did to the systems Stanford ran on would not be accessible by them.

 

[aja8888]

No but I remember getting a call from a support guy to ensure what they did to the systems Stanford ran on would not be accessible by them.

Allen ripped off many retirees to the tune of $7 Billion. He got 110 years in prison. He was a local Houston area guy and when he was in our local jail waiting for his trial, he got the royal crap beat out of him by other prisoners. I guess they had relatives that got scammed. American Greed did a session on him.

 

[aboatguy]

Right now, I'll stick to the two 3% apy for 12months $3k max and the 2.25% apy for 15 months up to $50k max certificates we have from Navy Federal Credit union!

 

[Another Reader]

Looking at www.depositaccounts.com, Live Oak Bank is offering a 2.30 percent 18 month CD. Fidelity has two year CD's from Wells Fargo for 2.4 percent. I'm ok with the 18 month, but a little nervous about anything beyond that.

 

[audreyh1]

Looking at www.depositaccounts.com, Live Oak Bank is offering a 2.30 percent 18 month CD. Fidelity has two year CD's from Wells Fargo for 2.4 percent. I'm ok with the 18 month, but a little nervous about anything beyond that.

I filled up on the 1.75% no penalty CDs, but now I’m just going to wait with these increasing savings account rates because I think the CD deals at the end of this year will be much higher.

 

[Chuckanut]

Today in the newspaper is an ad for a 12 month CD at 4.25% APY, and is FDIC insured. This rate is offered by First Financial Guarantee. We are currently in The Villages Florida. They have several locations close to this area. Ad says First Financial Guarantee is "the original CD locator and financial service Co." Phone number is 352-561-2050. No web site is listed in the ad. I might give them a call for details.

The Villages? Then they should also offer you a happy hour bonus payment and a coupon for 0.2 senior interest rate boost.

 

[Another Reader]

I filled up on the 1.75% no penalty CDs, but now I’m just going to wait with these increasing savings account rates because I think the CD deals at the end of this year will be much higher.

That was probably the smart thing to do. Live Oak is offering one year at 2.1 percent, which might be a good compromise now that the No Penalty CD has dropped dramatically.

 

[jazz4cash]

NASA FCU has an 11 mo IRA/taxable CD at 2.25apy. 20k min
49 mo IRA/taxable CD bumped to 2.40 apy 5k min

 

[audreyh1]

NASA FCU has an 11 mo IRA/taxable CD at 2.25apy. 20k min
49 mo IRA/taxable CD bumped to 2.40 apy 5k min

Wow - 11 month 2.25% - not bad!!!

The 2 year treasury is climbing fast. It touched 2.2% this morning.

I’m guessing we’ll see Fed Funds rate increase at least 0.75% this year, so cash (high yield) accounts should be yielding 2.25% by year end.

 

[Mango1956]

My 3% Pen Fed CD is expiring the end of this year. Hoping by then I can reup at 3% or better.

 

[ShokWaveRider]

My 3% Pen Fed CD is expiring the end of this year. Hoping by then I can reup at 3% or better.

I have a sneaky feeling a lot if us are in the same canoe.......

 

[jazz4cash]

My 3% Pen Fed CD is expiring the end of this year. Hoping by then I can reup at 3% or better.

Navy Federal still has 15 and 32 mo specials with an add-on feature. They pay 2.25 and 2.75. I'm using these as placeholders in case something better doesn't come along. I'm pretty much maxed out on fixed and I even use the longer term stuff in lieu of bonds.

 

[me228]

If you do stay with PenFed be sure to take into account their new early withdraw penalties. Certificates Having a Term Greater Than Six Months.

a) If redeemed within the first year, all dividends will be forfeited.

b) If redeemed thereafter, but prior to the maturity date, the early withdrawal penalty will equal 30% of what would have been earned if the certificate had been held to maturity, not to exceed total dividends earned.

 

[MJ]

PFCU has gone down the drain over the last few years. I got a whole bunch of PFCU money maturing in December. The only good thing I have from them is their old CC that I get 5% cashback. The only (good) problem is that I only spend about $25 to $35 a month on gas.

 

[pb4uski]

Yeah, I suspect that there will be a giant sucking sound at PenFed in the fourth quarter of this year unless they pull a rabbit out of their hat and offer some attractive rates... I hope that they are ready for it.

 

[REWahoo]

Yeah, I suspect that there will be a giant sucking sound at PenFed in the fourth quarter of this year unless they pull a rabbit out of their hat and offer some attractive rates... I hope that they are ready for it.

Not only that, the 30% early withdrawal penalty mentioned above seem excessive. It will take some really attractive rates for me to stay.

 

[copyright1997reloaded]

Yeah, I suspect that there will be a giant sucking sound at PenFed in the fourth quarter of this year unless they pull a rabbit out of their hat and offer some attractive rates... I hope that they are ready for it.

Yep. I have two CD's maturing 12/18 and two 01/19. All will leave Penfed unless they become competitive.

 

[audreyh1]

Not only that, the 30% early withdrawal penalty mentioned above seem excessive. It will take some really attractive rates for me to stay.

Yeah - as high yield savings and MM funds catch up, I’m not so interested in long commitments with high penalties unless the rate offered is high.

 

[CaptTom]

PFCU has gone down the drain over the last few years.

I first noticed when they went from a fixed cash back % on their credit card, to some phony "points" deal.

Instead of a simple batch job their own IT staff could manage with almost no effort, someone now has to manage a complicated points system. I'm pretty sure they're not doing it internally. No doubt it's some 3rd party.

They didn't do this for their customers.

The salesmen probably pitched it to PenFed management as a money-saving move; we'll con the mugs into playing this points game, and we'll split the take with you.

Once any business goes down that path, it's over. The customers are the enemy, to be taken advantage of at every opportunity. Usually the employees suffer the same fate. Kinda sad.

(They made me chose between the new points system, and any ONE category of cash back. I chose gas. That's the only thing I use the PenFed card for now.)

 

[MJ]

Regarding PFCU, I did take advantage of their 4 year .99% new car loan offer they had back in mid 2015 so I am still making 1/2+% on the the outstanding principal. I would have paid cash for the car but the loan was too cheap to pass up.

 

[Ready]

The Capital One 5 year 2.65% CD is not all that bad because you can terminate early with only a six month penalty. So if you put your money in for a year and then rates go up, you still will have earned 1.325% the first year, and you can then buy a CD with a higher rate after that. But if rates don't go up, you will earn a better rate than a one year CD would get you right now.

 

[braumeister]

I first noticed when they went from a fixed cash back % on their credit card, to some phony "points" deal.

I kept that cash card, although it took a lot of will power to ignore their constant nagging to switch to points. I still get 5% cash back on gas, 3% on groceries, and 1% on everything else with that card, credited to my statement the same month.

Between DW and me, we buy an average of over $200 in gas per month, so that's around $250 per year, or ten free tankfuls.

So PenFed is still pretty good in my book. My mortgage (nearly paid off) is with them too.

 

[ShokWaveRider]

I hope PenFed is watching this thread. We have ~$2m that is going to make a small sucking sound in December if they have no alternatives.