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03-31-2017, 06:54 PM
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#201
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by imoldernu
Dunno if this is too dumb a question to ask... OK to ignore...
Why does one buy an extended (more than 6 month) CD in the under 3% rate, when IBonds currently yield 2.78%, and adjust to the CPI? Yes, Bond held under 5 years lose thee months interest when redeemed early.
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For me, a couple of reasons:
- I bonds have relatively small annual purchase limits (10k?), CDs do not
- Dealing with treasury direct is a colossal PITA
I have both CDs and I bonds, but CDs are most of it.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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03-31-2017, 07:21 PM
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#202
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Quote:
Originally Posted by jazz4cash
The 84 mo CD on the AFCU website has been reduced from 3% to 2.2%. This is very disappointing since I was stalking CD rates in anticipation of higher rates and found the opposite. I am still hoping to find some rate increases after April 1st since I have come to the end of the road on my 4% NFCU CD and need to reinvest.
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CD rates do seem to have a serious lag compared to Fed rate rises. On the other hand, they never went as low as the Fed Funds Rate did.
I guess banks and credit unions have plenty of money on deposit at the moment. They aren't in a hurry to compete with each other.
__________________
Retired since summer 1999.
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03-31-2017, 07:37 PM
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#203
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Full time employment: Posting here.
Join Date: Aug 2015
Posts: 550
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Quote:
Originally Posted by audreyh1
CD rates do seem to have a serious lag compared to Fed rate rises. On the other hand, they never went as low as the Fed Funds Rate did.
I guess banks and credit unions have plenty of money on deposit at the moment. They aren't in a hurry to compete with each other.
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I think the Feds raised due to a different reason than a boom in the economy. Our GDP growth although OK clearly indicates that we are not booming and inflation the Feds wanted comes only because of Chinese Yuan slowly but surely started to push US$ from world trade. I also noticed that Banks did not move at all after the Feds rate raising. There is no much demand for loans, otherwise we would see a competition for your money to lend.
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03-31-2017, 07:42 PM
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#204
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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I expect the prime rate went up, so loans and mortgages were affected. Just not interest rates paid for deposits.
__________________
Retired since summer 1999.
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03-31-2017, 07:50 PM
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#205
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 397
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Quote:
Originally Posted by imoldernu
Dunno if this is too dumb a question to ask... OK to ignore...
Why does one buy an extended (more than 6 month) CD in the under 3% rate, when IBonds currently yield 2.78%, and adjust to the CPI? Yes, Bond held under 5 years lose thee months interest when redeemed early.
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There is a $10,000 limit per year per SS number purchase limit on I-Bonds. So if you have more than that , you need to look elsewhere.
HTH
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03-31-2017, 08:40 PM
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#206
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Thinks s/he gets paid by the post
Join Date: Apr 2016
Location: Dutchess County
Posts: 1,599
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Quote:
Originally Posted by travelover
Me, neither. That's why I kept my cassette player.
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You have a cassette player? I still use an 8 Track player.
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03-31-2017, 08:45 PM
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#207
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 397
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Quote:
Originally Posted by Just_Steve
You have a cassette player? I still use an 8 Track player.
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For real, tomorrow my new record player gets delivered by Amazon!!!!
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03-31-2017, 10:38 PM
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#208
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by audreyh1
I expect the prime rate went up, so loans and mortgages were affected. Just not interest rates paid for deposits.
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Yes, but with market interest rates moving up on treasuries, the banks will have to start competing soon. 4 week t bills are .74% as of today. Doesn't take much more for money to start moving in that direction rather than 1 year CDs.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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04-01-2017, 04:07 AM
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#209
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Thinks s/he gets paid by the post
Join Date: Sep 2008
Posts: 1,011
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Quote:
Originally Posted by Free bird
Are you a member of the American Consumer Council? I just found out that qualifies you. I forgot about that.
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I am now. Joined on line when I opened the account. $15.00 for a life time membership.
__________________
"I couldn't wait for success, so I went ahead without it." Ret. 2013 @ 51.
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04-01-2017, 05:02 AM
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#210
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Thinks s/he gets paid by the post
Join Date: Jul 2011
Posts: 1,290
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Here is a CA credit union now paying 2.72% for a 5 year CD. Need to qualify for membership. Those living in the San Francisco area have a good chance. Also, they post the following, among other ways to qualify You are an employee or pensioner of one of the 1100+ companies (including AT&T and Walgreens), associations, trade groups, chambers of commerce, or federal government agencies served by Patelco Credit Union.
https://www.patelco.org/Rates/#CDs
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04-01-2017, 05:38 AM
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#211
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2013
Location: Limerick
Posts: 5,655
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Quote:
Originally Posted by imoldernu
Dunno if this is too dumb a question to ask... OK to ignore...
Why does one buy an extended (more than 6 month) CD in the under 3% rate, when IBonds currently yield 2.78%, and adjust to the CPI? Yes, Bond held under 5 years lose thee months interest when redeemed early.
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Yields on I Bonds change every six months. It wasn't that long ago there was a six month period where they were paying zero for the inflation portion of the calculated rate. However, we recently bought more I Bonds expecting inflation to be higher for the foreseeable future. We can always cash them in after a year should rates go back down.
Funny thing though...having registered the bonds jointly with DW we bought two $10,000 I Bonds thinking one for each of our social security numbers. We got a warning email about buying too many I Bonds for one social security number, since my number is the primary on the account. But they let us keep the bonds. We also opened an account for DW and bought another $10,000 I Bond in that account registered jointly, but with her number as primary. We also opened a trust account, with my number as primary and bought another.
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04-01-2017, 05:54 AM
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#212
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Quote:
Originally Posted by brewer12345
Yes, but with market interest rates moving up on treasuries, the banks will have to start competing soon. 4 week t bills are .74% as of today. Doesn't take much more for money to start moving in that direction rather than 1 year CDs.
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Yeah, is what I thought, so I've been watching this process to see when high yield savings and CD rates "finally get moving". Many haven't charged their rates for a year or two. At least they stopped going down.
Money market mutual funds, on the other hand, have increased rates quite a bit over the past year, although still way behind the higher yielding savings account.
__________________
Retired since summer 1999.
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04-01-2017, 06:55 AM
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#213
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Full time employment: Posting here.
Join Date: May 2015
Location: Charleston, SC
Posts: 549
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I notice that Capital One CD Rates are moving up recently....their 18 month rate is now 1.45% and the 24 month is at 1.60% and than it flattens out.
https://www.capitalone.com/cds/online-cds/
I don't feel comfortable locking up money longer than that.
__________________
He who thinks he 'knows it all' has a very limited understanding of the word ALL.
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04-01-2017, 08:57 AM
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#214
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,265
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Quote:
Originally Posted by travelover
Me, neither. That's why I kept my cassette player.
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What's a cassette player? Can I store my old 45's in it?
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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04-01-2017, 08:58 AM
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#215
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2011
Location: West of the Mississippi
Posts: 17,265
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Quote:
Originally Posted by audreyh1
Yeah, is what I thought, so I've been watching this process to see when high yield savings and CD rates "finally get moving". Many haven't charged their rates for a year or two. At least they stopped going down.
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My 3% PenFed CD's still look awfully good right now. Who would have thought?
__________________
Comparison is the thief of joy
The worst decisions are usually made in times of anger and impatience.
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04-01-2017, 09:11 AM
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#216
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Quote:
Originally Posted by FiveDriver
I notice that Capital One CD Rates are moving up recently....their 18 month rate is now 1.45% and the 24 month is at 1.60% and than it flattens out.
https://www.capitalone.com/cds/online-cds/
I don't feel comfortable locking up money longer than that.
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They are just catching up with some others.
__________________
Retired since summer 1999.
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04-01-2017, 09:12 AM
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#217
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,145
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Quote:
Originally Posted by Chuckanut
My 3% PenFed CD's still look awfully good right now. Who would have thought?
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Mine mature in Dec of next year.
Many of us have be patting ourselves on the back ever since.
I loaded up on the Andrews FCU 3% early this year and I am curious to see when the rate is finally exceeded.
__________________
Retired since summer 1999.
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04-01-2017, 09:28 AM
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#218
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Recycles dryer sheets
Join Date: Jan 2008
Posts: 397
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Quote:
Originally Posted by audreyh1
I loaded up on the Andrews FCU 3% early this year and I am curious to see when the rate is finally exceeded.
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Andrews lowered their 3% rate a few weeks ago, to I think 2.2%. Glad I got one also a while back.
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04-03-2017, 11:17 AM
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#219
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Full time employment: Posting here.
Join Date: Dec 2013
Posts: 774
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Mountain America C U told me I can only transfer $7500 per day via ACH. The CU it's coming from has no ACH limits. Are all of these places different? I thought I read where someone on this thread funded their account with $260k using ACH at MACU.
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04-03-2017, 11:46 AM
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#220
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Location: SoCal, Lausanne
Posts: 4,408
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Quote:
Originally Posted by CountingDown2014
I noticed on Fidelity that JPMorgan Chase is offering a 3% 10-Year CD although it doesn't appear that you have the ability to make any early withdrawals prior to maturity. I am considering moving some $ that is currently in a bond fund in my tIRA and Roth IRA to this but wanted to get some feedback from others as to whether this might be jumping the gun since I will be locked into this for 10 years (even though I have no plans of using these funds during that period). Thanks!
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A 10 year note with JP Morgan pays 4%.
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