How soon until CD rates reflect the Fed hike of May 4th?

[audreyh1]

Ally has fallen behind. They will be forced to increase their savings rate and thus their no penalty CD rate soon.

Well. Got notice from Ally today that their savings rate went up to 0.6%. Also the no penalty CD.

 

[PERSonalTime]

They will eventually. They have been competitive in the past. They’re dragging their feet at the moment, but will respond when funds start seriously getting pulled.

They’re too slow. I’m moving funds for a better rate.

 

[Koolau]

They will become more competitive if/when they need to do so in order to get the deposits they need. No need to do it sooner & no different than any other bank.

No source and too lazy to look: I have heard that banks are still awash in cash and don't need to raise rates - yet. I'm gonna wait until they start offering toasters again.

 

[2HOTinPHX]

No source and too lazy to look: I have heard that banks are still awash in cash and don't need to raise rates - yet. I'm gonna wait until they start offering toasters again.

At these low interest rates they may not be offering toasters for a long while. You may need to settle for a peice of toast... unfortunately.

 

[Koolau]

At these low interest rates they may not be offering toasters for a long while. You may need to settle for a peice of toast... unfortunately.

Heh, heh, more like CRUMBS!

 

[audreyh1]

They’re too slow. I’m moving funds for a better rate.

I’m sure many folks are doing the same. They will be forced to respond.

 

[Koolau]

They’re too slow. I’m moving funds for a better rate.

Let us know what that is please.

 

[aja8888]

Ally just sent me a notice for a 20 month CD @ 2.0%! Things are moving in the right direction.
https://www.ally.com/go/bank/20m-select-cd/?CP=EML400002574

 

[I am He]

Banks are kind of getting pinched right now on any loans they hold on their books. They can't sell them at the rates they wrote them at from a year or two ago so I think it's going to be a bit, yet.

Similar to your bonds right now. No one wants to buy them at the older/lower rates with out taking a haircut.

 

[lakehawk]

CD Rates

20-Month Select CD

2.00%

Annual Percentage Yield
Accurate as of 5/13/2022.
APY is subject to change.

ALLY Bank

https://www.ally.com/go/bank/20m-select-cd/?CP=EML400002574

 

[aja8888]

20-Month Select CD

2.00%

Annual Percentage Yield
Accurate as of 5/13/2022.
APY is subject to change.

ALLY Bank

https://www.ally.com/go/bank/20m-select-cd/?CP=EML400002574

See post #33 above.

 

[Turbo29]

Brokered CDs at Fidelity 2.9% (as of the time of this post).

https://fixedincome.fidelity.com/ftgw/fi/FILanding

Seems like the brokered CDs are getting closer to Treasury rates at the shorter maturities (and already exceed them at the longer).

 

[WWDog]

Woo! Hoo! Let me know when I can get one at least even with inflation.

 

[Koolau]

Woo! Hoo! Let me know when I can get one at least even with inflation.

Heh, heh, not for a long time yet!

 

[audreyh1]

Woo! Hoo! Let me know when I can get one at least even with inflation.

IBonds is it for now!

 

[money4wells]

I signed up for a new online savings account today, Baskbank.com. Kiplinger recommended them this month. 1.25% rate for online savings, no limit on amounts, FDIC insured.

Planning on moving my one year of expenses from Capital One that has stayed at 0.3% even still today. They went to 0.6% for new money, but not money already there. The one thing I will miss though is Capital Ones ability to have multiple sub accounts and name them whatever you want.

Anybody else had any experience with Bask Bank? From the site:
We launched the first online-only savings bank in the U.S. through Texas Capital Bank in 1999 and have been rewarding people for saving ever since.