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-   -   Best CD, MM Rates & Bank Special Deals Thread 2021 - Please post updates here (https://www.early-retirement.org/forums/f28/best-cd-mm-rates-and-bank-special-deals-thread-2021-please-post-updates-here-107187.html)

Dtail 01-16-2021 05:02 AM

Quote:

Originally Posted by njhowie (Post 2544465)
For us, it's $1000 to $2000 a year. That doesn't change our lives one bit either. However, when you put some context around it, like "It pays our auto insurance for the year" or "It pays our electric bills for the year", well, then the hour or two I spend on it a year is well worth the effort. I'm retired - time is the one thing I have an abundance of.

I like having my money work for me. I keep a money market statement from March 2010 tacked to the wall right in front of my computer showing "30 Day Yield: 0.01%" just to remind me what receiving $1.74 over a 3 month period for $72,000 looks like. Never again. $100, $200, $300 for clicking a few buttons and letting my money sit in one bank's computer versus some other? Who would believe they actually pay so much for doing so little? 10 or 20 years ago who could have imagined such a thing? I'll pick up the $100 bill every time I see it on the ground - it's not too much effort for me.

Some of the same arguments are made for folks not interested in managing CC rewards, which admittingly is a little more work, but not too much more.

calmloki 01-16-2021 09:22 AM

Hunh. This morning Ally bank says our 1.9% CD has matured and is now sitting in our Ally savings account earning 0.5%. I'm going to move $10K of it over to a Navy FCU addon CD I set up that matures in November that pays 1.34%. Figure that will earn about $73 more than if I let it sit in Ally at current rates. It will take less time than typing this out has. Why would I not take the extra $73 and the satisfaction that comes from having the money working a bit harder? How is that different than maximizing bank bonus money?

Chuckanut 01-16-2021 09:38 AM

The Vanguard Short Term Investment grade fund is looking better and better these days.

Sojourner 01-16-2021 11:38 AM

Quote:

Originally Posted by Dtail (Post 2544473)
Some of the same arguments are made for folks not interested in managing CC rewards, which admittingly is a little more work, but not too much more.

Even though I've stopped chasing bank account sign-up/transfer bonuses, I view larger CC bonuses a bit differently. For example, I'm currently eyeing the Chase Ink Business Cash CC and its $750 sign-up bonus. If used for booking travel through the Chase UR portal, the bonus is actually more like $935... and that's after-tax money. This is better than getting a $1,000 taxable bonus from a bank or brokerage account sign-up deal. IMHO, that passes my threshold for "worth my time and effort", whereas the smaller, taxable bank sign-up bonuses generally don't.

GenXguy 01-16-2021 12:01 PM

I have a few NFCU CDs coming up for renewal, all 3%. Just checked their renewal rates - .55% for 12 month, .6% for 18 month.

I would consider moving to Ally for .6% on a 12 month, but I think NFCU has a limit on transferring out.

Timeisprecious 01-16-2021 12:06 PM

Quote:

Originally Posted by target2019 (Post 2544237)
Banks should simply send money to us, just like rich Uncle Sam!

RIIIIIIIGHT! :laugh:

Sojourner 01-16-2021 12:23 PM

Quote:

Originally Posted by GenXguy (Post 2544648)
I have a few NFCU CDs coming up for renewal, all 3%. Just checked their renewal rates - .55% for 12 month, .6% for 18 month.

I would consider moving to Ally for .6% on a 12 month, but I think NFCU has a limit on transferring out.

The difference between 0.6% and 0.55% amounts to a mere $50 over an entire year for a $100,000 CD (for example). Just pointing out the tiny amounts of money under consideration here.

Dtail 01-16-2021 12:34 PM

Quote:

Originally Posted by GenXguy (Post 2544648)
I have a few NFCU CDs coming up for renewal, all 3%. Just checked their renewal rates - .55% for 12 month, .6% for 18 month.

I would consider moving to Ally for .6% on a 12 month, but I think NFCU has a limit on transferring out.

Perhaps move it from the Ally side.

Montecfo 01-16-2021 01:28 PM

Quote:

Originally Posted by Chuckanut (Post 2544571)
The Vanguard Short Term Investment grade fund is looking better and better these days.

I put a bit of my maturing CD money in the market neutral Merger Fund (MERFX), per discussion in last years thread. It is merger arbitrage, pays interest once a year. I'm guessing I will earn 2-3 percent in this low rate environment where I expect there will be a lot of merger activity.

I also bought a closed end fund which invests in bank loans, which have been out of favor (10 pct discount to NAV) recently. Definitely more risk than a CD but I expect little change in short rates in this unique year.

And I still have CDs at 3.3 pct and one maturing mid-year. And my MM at CFG Bank appears to be holding now at .72 pct.

rrppve 01-19-2021 01:25 AM

MYGAs to replace CDs
 
With CD rates so low, Iíve switched to investing maturing CDs into insurance company issued MYGAs, which are very similar. You can find 3% for 5 year MYGAs. Granted they are not FDIC insured. One advantage is that taxes on earnings are deferred until the money is withdrawn.

jazz4cash 01-19-2021 08:19 PM

Quote:

Originally Posted by rrppve (Post 2546024)
With CD rates so low, Iíve switched to investing maturing CDs into insurance company issued MYGAs, which are very similar. You can find 3% for 5 year MYGAs. Granted they are not FDIC insured. One advantage is that taxes on earnings are deferred until the money is withdrawn.



+1. I locked one in just before rate dropped from 3.05 to 2.5 for A rated insurer. If I was buying today Iíd accept B+ to get 3%. It took 5 weeks to fund. I really like the 10% /yr withdrawal feature even though I shouldnít need to do that. I have a bit of room to add-onto my NFCU CD. I am very surprised by some of the riskier suggestions to replace FDIC CDs.

audreyh1 01-19-2021 10:05 PM

Quote:

Originally Posted by GenXguy (Post 2544648)
I have a few NFCU CDs coming up for renewal, all 3%. Just checked their renewal rates - .55% for 12 month, .6% for 18 month.

I would consider moving to Ally for .6% on a 12 month, but I think NFCU has a limit on transferring out.

You can pull from Ally once you have a bank transfer link established. Limits are very high, and NFCU limit will not apply.

Ally is currently offering a 15 month 0.65% CD special. You may have to google it as Ally doesnít include the offer in their standard CD list.

Mike1968 01-20-2021 07:16 AM

Quote:

Originally Posted by audreyh1 (Post 2546490)
You can pull from Ally once you have a bank transfer link established. Limits are very high, and NFCU limit will not apply.

Ally is currently offering a 15 month 0.65% CD special. You may have to google it as Ally doesnít include the offer in their standard CD list.


Here is the link to the Ally 15 month(Select CD) special:


https://www.ally.com/go/bank/15m-select-cd/

pb4uski 01-20-2021 08:23 AM

Sad that 0.65% for 15 months is attractive enough to be worthy of mention... but those are the times that we live in.

audreyh1 01-20-2021 08:36 AM

Yes, it’s still better than MM funds at brokerages, and most high yield savings accounts which can continue to drop further.

The extra 0.5% bonus for renewing an Ally CD at least brought it to 0.7%.

pb4uski 01-20-2021 08:41 AM

Quote:

Originally Posted by audreyh1 (Post 2546576)
Yes, itís still better than MM funds at brokerages, and most high yield savings accounts which can continue to drop further.

The extra 0.5% bonus for renewing an Ally CD at least brought it to 0.7%.

You mean 0.05% bonus... right?

Dtail 01-20-2021 01:18 PM

Quote:

Originally Posted by pb4uski (Post 2546580)
You mean 0.05% bonus... right?

Yes.:)

audreyh1 01-25-2021 06:09 PM

Quote:

Originally Posted by pb4uski (Post 2546580)
You mean 0.05% bonus... right?

Right, sorry!

audreyh1 01-25-2021 06:11 PM

The Ally 15 month "Select" promotional CD offer has been extended to 5/04/21 and is currently still offered at 0.65%.

If you rollover a maturing Ally CD you get an additional 0.05% interest rate bonus added.
https://www.ally.com/go/bank/15m-select-cd/

BergLust 01-25-2021 11:09 PM

Quote:

Originally Posted by audreyh1 (Post 2549655)
The Ally 15 month "Select" promotional CD offer has been extended to 5/04/21 and is currently still offered at 0.65%.

If you rollover a maturing Ally CD you get an additional 0.05% interest rate bonus added.
https://www.ally.com/go/bank/15m-select-cd/



Well, this may be one I look into. Thanks for the tip. The end of last year I did the Citi bonus offer: deposit 50k for 60 days and get $700 bonus. I just got the bonus deposited and am in the process of closing that account. Need to park the money somewhere.


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