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Old 12-23-2016, 04:11 PM   #161
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Thanks. Not a bad deal for cash. I am in. They have 3 and 6 month for 3% too.
I agree.

I recall reading a thread (not sure if it was here or Bogleheads) where some people viewed CDs as a potential alternative to Bond Funds.

If 1 year from now, rates were to rise to 4% then a Bond Fund would lose principal value but in this case you can withdraw after 1 year, take the equivalent of 1.5% for year 1 and open a 4% CD with the same principal.
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Old 12-23-2016, 04:13 PM   #162
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Yes but I spilt it up so rather than open 1 cd I am opening like 4 so I can dump one or two if rates for up
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Old 12-23-2016, 04:21 PM   #163
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Yes but I split it up so rather than open 1 cd I am opening like 4 so I can dump one or two if rates for up
I did this in the past. Now, I check if they allow partial withdrawals with penalty on only the part withdrawn. Most, but probably not all, now allow this. I first experienced them allowing partial withdrawal about 10-13 years ago at a local branch of large regional bank when I was going to open 6 CD's of same term and rate..
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Old 12-23-2016, 04:57 PM   #164
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Got my andrews open finally.
3% yield is nice.
I am opening a few in case i withdraw prior to 7 years.

Someone said they saw where early withdrawal penalty was 6 months. I can't find that.
Anyone have that in print?
Thanks.
OK Here it is................

Early withdrawal penalties (a penalty may be imposed for principal withdrawals before maturity):
•If your account has an original maturity of less than 24 months, we will charge a penalty equal to 90 days of dividends.

•If your account has an original maturity date of 24 months or greater, we will charge a penalty equal to 180 days of dividends.

on page 9 of this document...
https://www.andrewsfcu.org/content/d...hinSavings.pdf

It is also stated in the Share Certificate Disclosure document that I received when I opened my CD.

I can no longer find the 84 month IRA CD (which I hoped would stick around until April). It looks like the 84 months @ 3% is only available for a regular CD until 12-31-16.
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Old 12-23-2016, 05:27 PM   #165
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Yes but I spilt it up so rather than open 1 cd I am opening like 4 so I can dump one or two if rates for up
I did the same thing and opened 4. Although it was probably overkill since Andrews states that they allow partial withdrawals.
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Old 12-23-2016, 05:31 PM   #166
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I think you can open either. I probably should of done it with ira money but I keep most of that in market. This was for loose cash which I had too much sitting at 1%.
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Old 12-23-2016, 06:01 PM   #167
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I did the same thing and opened 4. Although it was probably overkill since Andrews states that they allow partial withdrawals.
I split up a CD purchase at Penfed awhile ago but this time i sent Andrews an email requesting specific advice that I could obtain multiple partial withdrawals with the 6 mo EWP and I filed the email with my certificate.
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Old 12-23-2016, 06:42 PM   #168
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I can no longer find the 84 month IRA CD (which I hoped would stick around until April). It looks like the 84 months @ 3% is only available for a regular CD until 12-31-16.
It is still there. The CD rate page has 4 or 5 headers you can check for different type cds ie:Fixed rate, IRA, Jumbo and special ect.
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Old 12-23-2016, 06:47 PM   #169
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My account is still not open, even though my application was approved several days ago. I don't think I'm going to be able to get funds transferred in time with banks being closed on Monday. This has taken far longer than I expected.
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Old 12-23-2016, 06:51 PM   #170
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5 year Treasuries are back over 2%. No state income tax on Treasuries. No early withdrawal penalty, just market risk if higher rates.
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Old 12-23-2016, 06:52 PM   #171
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I opened the basic savings account with $5. Then transferred from ally to there. Then opened the certificate. Took a week to get it opened and verify it from ally. I like ally too but their 1% doesn't compare to this.
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Old 12-23-2016, 06:53 PM   #172
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5 year Treasuries are back over 2%. No state income tax on Treasuries. No early withdrawal penalty, just market risk if higher rates.


I never play treasuries. How do you buy?
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Old 12-23-2016, 07:28 PM   #173
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My Andrews account was finally approved on Tuesday. I was able to fund the account the same day by depositing a personal check at a local credit union co-op shared branch. I called Andrews right after making the deposit and they were able to open three 7-year @ 3% CDs for me right away. It took almost 2 weeks to be approved for membership, but only about 3 hours to fund the account and open the CDs.
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Old 12-23-2016, 07:55 PM   #174
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It is still there. The CD rate page has 4 or 5 headers you can check for different type cds ie:Fixed rate, IRA, Jumbo and special ect.


I see it now. Thanks
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Old 12-23-2016, 08:21 PM   #175
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My Andrews account was finally approved on Tuesday. I was able to fund the account the same day by depositing a personal check at a local credit union co-op shared branch. I called Andrews right after making the deposit and they were able to open three 7-year @ 3% CDs for me right away. It took almost 2 weeks to be approved for membership, but only about 3 hours to fund the account and open the CDs.
Glad you got on the train......cutting it pretty close there, or did you abandon leaving town for Xmas?
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Old 12-23-2016, 08:40 PM   #176
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I never play treasuries. How do you buy?

Any broker will happily sell you some. Alternatively, you can set up a TreasuryDirect account with the US Treasury and buy bonds that way.
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Old 12-23-2016, 08:44 PM   #177
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I have a treasury direct accounts but was never sure how to buy them. Will look. I still think a 3% taxable cd is better.
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Old 12-23-2016, 08:55 PM   #178
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I have a treasury direct accounts but was never sure how to buy them. Will look. I still think a 3% taxable cd is better.
It depends on your aims and goals. Treasuries are a nice offset to an equity portfolio because they tend not to be too highly correlated with stocks and in times of market panic/chaos they particularly shine. That means they are easy to liquidate at good prices in a crash and rebalance to equities if you wish to do so.

However, if you rate shop CDs you can generally get a higher yield with no market risk vs. treasuries. So if you are looking for a safe place to stash some "oh excrement" money that you can access in a pinch and not lose too much to inflation, CDs are a better bet than Treasuries.

If we get to the point where I think interest rates have about peaked and are about to go the other way, I will be cashing in CDs and buying treasuries. At that point the early surrender option will have little value and treasury bonds offer you an option that CDs do not offer: you can sell appreciated treasuries after rates have fallen and convert interest income into capital gains income. This can be very attractive depending on your tax profile.
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Old 12-24-2016, 02:08 AM   #179
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Glad you got on the train......cutting it pretty close there, or did you abandon leaving town for Xmas?
I stopped by the co-op shared branch to make the deposit on my way to the airport and I called back Andrews while waiting for my flight. So yes, cutting it really close...
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Old 12-31-2016, 09:18 AM   #180
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Just wanted to inform those who are interested in 5 yr CD. Bank Popular Direct offers 2.25% APY, they have high financial health rating (5 stars) so far and FDIC.
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