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Seems Like CD Rates ARE creeping up.
05-03-2018, 09:33 AM
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#1
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Join Date: Jun 2003
Location: Florida's First Coast
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Seems Like CD Rates ARE creeping up.
Here is PenFed's Latest. 12 Month for 2.15 seems pretty reasonable.
https://www.penfed.org/accounts/mone...SAAEgIQ5vD_BwE
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05-03-2018, 09:49 AM
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#2
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Join Date: Jan 2018
Location: Tampa
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 Quote:
Originally Posted by ShokWaveRider
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I think the 1 yr quote is 2.10. Fidelity has 1 yr new issues for 2.15.
Relating back to your other thread, I think the PenFed 5 yr of 3% from 5 years ago was an unusual circumstance that many on this site jumped on. Others can comment.
Edit - I see you now stated you are one of the PenFed holders. Okay so you know......
I think that PenFed's current rates are not that unusual.
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TGIM
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05-03-2018, 11:46 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Aug 2004
Location: Laurel, MD
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To me, this is much faster than a creep. I started another thread about taking the EWP hit on a 3 yr CD I bought just 10 months ago. This reinforced the value of having a modest EWP for me.
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...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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05-03-2018, 11:49 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Feb 2007
Location: Upstate
Posts: 2,950
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Just follow this site: https://www.depositaccounts.com/blog/
Yes, rates are moving up.
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05-03-2018, 02:38 PM
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#5
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Join Date: Jan 2008
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Sweet spot seems to be 2-3 years. Yield curve flattens out quickly once you get to 5 and the payoff from 10-30 is almost nothing.
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05-03-2018, 06:53 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
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Quote:
Originally Posted by jebmke
Sweet spot seems to be 2-3 years. Yield curve flattens out quickly once you get to 5 and the payoff from 10-30 is almost nothing.
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+1
One would hope for a minimum]of 20 bps extra per year.
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TGIM
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05-03-2018, 08:19 PM
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#7
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Give me a museum and I'll fill it. (Picasso)
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Quote:
Originally Posted by jebmke
Sweet spot seems to be 2-3 years. Yield curve flattens out quickly once you get to 5 and the payoff from 10-30 is almost nothing.
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+2
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...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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05-06-2018, 06:57 AM
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#8
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Thinks s/he gets paid by the post
Join Date: Mar 2012
Posts: 3,931
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For folks who are buying new issue CDs through their broker, if you have free time during the day, consider skimming through the secondary market offerings - on Friday I was able to get 3% for (exactly) 3 years through Fidelity, even after the $1/CD commission.
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05-06-2018, 10:05 AM
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#9
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Recycles dryer sheets
Join Date: Aug 2013
Posts: 437
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Even the money market settlement fund is giving a better yield now! 1.59% for vanguard's fed money.
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05-06-2018, 05:14 PM
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#10
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Recycles dryer sheets
Join Date: Mar 2016
Posts: 103
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Is it better to find a CD that pays monthly interest?
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05-06-2018, 05:25 PM
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#11
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Give me a museum and I'll fill it. (Picasso)
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Quote:
Originally Posted by Fleur58
Is it better to find a CD that pays monthly interest?
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I think most do. Not sure about brokered, but regular CDs do. I have the interest put into an account monthly. Of course it is not compounded that way.
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05-06-2018, 05:58 PM
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#12
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Using Fidelity brokered CD's as an example, the interest payments are a mix of monthly and semi-annual in the 2-3 year range.
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05-06-2018, 07:00 PM
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#13
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Give me a museum and I'll fill it. (Picasso)
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If you don't need to use the dividends it doesn't matter much but be sure to compare apy and not just the interest rate.
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...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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05-06-2018, 08:36 PM
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#14
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Quote:
Originally Posted by Fleur58
Is it better to find a CD that pays monthly interest?
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I don’t care about that.
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Retired since summer 1999.
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05-07-2018, 05:46 AM
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#15
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Join Date: May 2014
Location: Utrecht
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None here in the Netherlands & Belgium do, all do it yearly.
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05-11-2018, 02:33 PM
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#16
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Recycles dryer sheets
Join Date: Oct 2009
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CDs at Schwab are yielding 3.2% for 5 years and, I think, 2.9% or 2.7 for 3 years.
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05-11-2018, 02:42 PM
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#17
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Brokered? Or New Issue?
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05-11-2018, 02:43 PM
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#18
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Recycles dryer sheets
Join Date: Oct 2009
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New issue. Several pay semi annually and a couple monthly.
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05-11-2018, 02:54 PM
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#19
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Thinks s/he gets paid by the post
Join Date: Mar 2009
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It appears to me that a great majority are buying CD's in the 2 year range. Personally I'm keeping to my 5 year ladder approach. With current, better , core yields it really doesn't matter what payout schedule is used.
Keep in mind that the Fed may be using current increases as a hedge against future downturns. Who knows?
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05-11-2018, 03:32 PM
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#20
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Join Date: Nov 2011
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Quote:
Originally Posted by foxfirev5
It appears to me that a great majority are buying CD's in the 2 year range. Personally I'm keeping to my 5 year ladder approach. With current, better , core yields it really doesn't matter what payout schedule is used.
Keep in mind that the Fed may be using current increases as a hedge against future downturns. Who knows?
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I've been pondering this too. Tough to stick with 5 years when it seems like rates have nowhere to go but up, OTOH that's mere guessing.
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