High(er)-rate CD deals

[Another Reader]

Pen Fed is at 1.36% APY for 12 months...

 

[Dave J]

Pen Fed is at 1.36% APY for 12 months...

I wasn't talking up the rate, just the rate increase. Also, the Ally is no penality, so it is just about like a passbook savings account.

 

[audreyh1]

This is the only one I have seen so far......From https://www.depositaccounts.com/blog/

This might be a sign that Wednesday’s Fed rate hike will have an effect on deposit rates. Ally Bank just raised the APY of its 11-month No Penalty CD by 38 basis points to 1.25%. This is the highest APY that Ally Bank has offered on this CD since 2010.

The 1.25% APY applies to all balances. Ally Bank added rate tiers in 2015, but this 11-month CD currently has just one rate for all tiers.

Hmmm - no penalty? - Wow!

 

[almost there]

Vanguard bumped it up last week. Unlike Ally, they used to be the leader LOL LOL Now there 5 yr is 1.75%. Vanguard is 2.25% Strange....
Thinking about laddering, but is it too soon?
Vanguard today
1 month 0.50%, 3 month 0.60%, 6 month 0.80%, 9 month 0.95%, 1 year 1.10%, 18 month 1.45%, 2 year 1.55%, 3 year 1.75%, 5 year 2.25%

 

[djr59]

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.

 

[jazz4cash]

Did you open IRA or regular CD? It looks like the EWP details are no longer on the webpage.

 

[djr59]

Regular. Was planning on opening more

 

[Earl E Retyre]

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.

I do not see it anywhere on the website. However, the nice thing about Andrews is that they will email you a sheet of paper for each CD you open including the amounts, maturities, etc as well as the Terms & Conditions including the withdrawal penalty. Here is a picture from mine. Wait about a week and you should get your paperwork.

 

[kaneohe]

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.

https://www.depositaccounts.com/banks/andrews-federal-credit-union/offers/

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

 

[djr59]

Thanks. Not a bad deal for cash. I am in. They have 3 and 6 month for 3% too.

 

[Earl E Retyre]

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.

 

[djr59]

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

 

[Dave J]

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..

 

[jazz4cash]

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/docs/TruthinSavings.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.

 

[Earl E Retyre]

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.

 

[djr59]

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%.

 

[jazz4cash]

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.

 

[Dave J]

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.

 

[audreyh1]

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.

 

[jim584672]

5 year Treasuries are back over 2%. No state income tax on Treasuries. No early withdrawal penalty, just market risk if higher rates.

 

[djr59]

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.

 

[djr59]

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?

 

[FIREd]

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.

 

[jazz4cash]

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

 

[kaneohe]

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?