Best CD & MM Rates Thread 2019 - Please post updates here

[pb4uski]

FDIC insurance doesn’t go that high. How are they doing this?

They are using multiple banks... sounds like as many as 5 banks since $1,250,000/$250,000 = 5.

FDIC insurance up to $250,000 (including principal & interest) per depositor per program bank. The cash balance you place through the program is swept to one or more program banks where it earns a variable rate of interest and is eligible for FDIC insurance. If the number of program banks changes, the aggregate amount of available FDIC insurance could be higher or lower. If you have deposits at a program bank, you should consider electing not to use that bank by following the opt out instructions we provide. If you do so, the aggregate amount of FDIC insurance available to you will be lower. If you do not do so, your existing deposits and deposits through Personal Capital Cash at that program bank will be combined for the purposes of FDIC coverage, which could result in some of your funds at that program bank being uninsured.

 

[Another Reader]

FDIC insurance doesn’t go that high. How are they doing this?

Multiple banks. This is a variable rate account. Money is funneled through one bank into several others. Those banks have some kind of rate agreement with PC and/or the master bank. Your rate will change as these rates change. PC is probably skimming a couple of basis points to pay their costs. Pretty sure some of the brokers do the same but take a bigger chunk of the interest.

 

[jazz4cash]

I see where they use multiple banks but I noted references to fixed and variable rates in separate areas of the disclosure. I’m wary of this but I’d never be in a position where I need a product like this, anyway!

 

[audreyh1]

I see where they use multiple banks but I noted references to fixed and variable rates in separate areas of the disclosure. I’m wary of this but I’d never be in a position where I need a product like this, anyway!

I immediately thought of the multiple banks scheme for FDIC coverage. No problem there. What I don't get is how that provides 2.3% interest.

Well, never mind, you can get very close to 2.3% with online high yield savings accounts. So maybe they get a slightly better deal.

 

[dvalley]

I think Personal Capital has a good reputation so they won't do something funny. Of course the rates can change but then again it's a fluid account unlike a CD so the money can moved in and out easily. Right now most of my cash is in a Vanguard MM account earning close to 2% last I checked so this will be a slight increase. I haven't singed up for it yet but if it's a few clicks right from my account that'll make it convenient too.

 

[wrigley]

Just saw NFCU has a 10 month CD @ 2.75% for up to $100,000.

Sorry if this has already been posted.

Mike

 

[nwsteve]

Ally is still offering 2.55 for 12 & 18 mon with 25K in their High Yield CD--only a few months ago it was 2.7.

 

[gayl]

My IRA is at Schwab & I have a little in CDs for some balance. Rates dropped yesterday to the point where 1-3 months beats 1.5 - 2.5 yrs. WWYD?

 

[Gotadimple]

My IRA is at Schwab & I have a little in CDs for some balance. Rates dropped yesterday to the point where 1-3 months beats 1.5 - 2.5 yrs. WWYD?

Go short! Sometimes it is upside down. When it's time to renew longer term may be more attractive.

 

[ShokWaveRider]

Just Secured a 24 month 3.25% CD at SunCoast Credit Union Florida....

 

[copyright1997reloaded]

Just Secured a 24 month 3.25% CD at SunCoast Credit Union Florida....

Similar situation here. I came to the conclusion early this year that we were topping out (in terms of rates) and decided to lock in as many 3.25% 2-year rates as I could (as money became available).

I still think we might be seeing a repeat of the late 94/early 95 cycle, where the economy slowed/did a brief mini-recession and then returned to higher growth rates. If so, the $ put away for 2-years might work out pretty well in terms of rates when they mature.

One of the big arguments that we have had a super long bull ( 10 years) and that it must end neglects to mention that we've had three near 20% downturns during that 10 year period.

 

[24601NoMore]

Just Secured a 24 month 3.25% CD at SunCoast Credit Union Florida....

Sweet. I'm only seeing 5-year jumbo CDs/Certificates at that rate in places I can get them..

I generally don't like to go out 5 years but as long as I can get > 3% on my $$, it meets our needs in terms of dividend/interest income. Something "better" may come along in a couple/few years..but as long as I can pay the bills, I'm thinking I need to grab the 3+% (actually seeing 3.25% 5-yr at Navy) while I can still get it..even on 5 year durations.

And to think back not too terribly long ago, we all expected 3.5 - 4% on reasonable duration CDs & Certificates..how things change (and quickly).

 

[jazz4cash]

Thinking back to 2011. PenFed had a limited amount of 5% CDs with 10 yr term. I distinctly remember how tough it was to go out 10 yrs. Wish I’d bought more.

This also makes me feel great about those NFCU add on CDs. I can get 2.75 on a 13 mo CD and 3.7 for 32 months. These get better as maturity approaches.

 

[stephenson]

Rolled a few more K into the NFCU CDs ...will prob keep doing this for a few months as money is available.

 

[nwsteve]

Seattle Bank (seattlebank.com) 1 yr cd-2.8; 2 yr CD 2.95. There are higher rates for longer terms but spread over 2 yrs is small. Community Bank-FDIC. All WA state residents eligible, outstate residents subject to bank discretion so you have to call bank.
Straightforward online app with credit check to verify ID or you can go to branch--but there are not many and all in greater Seattle/Bellevue.

 

[ShokWaveRider]

On average for this years investments in CDs, our money that has matured from long term 3% instruments is averaging 3.73% overall. This is thanks to the uptick of rates in the early months of 2019, and taking advantage of CD specials. I do not think that is too bad considering. Thanks Mr. Powell. That should keep us going for the next 2 years at least.

 

[ShokWaveRider]

Vanguard VMMXX Down to 2.39%

 

[Dtail]

Fidelity's version of VMMXX which is FZDXX is way down to 2.25%.
Yeah just saw Ally down to 2.10%.
To be expected I guess.

 

[nwsteve]

Seattle Bank (seattlebank.com) 1 yr cd-2.8; 2 yr CD 2.95. There are higher rates for longer terms but spread over 2 yrs is small. Community Bank-FDIC. All WA state residents eligible, outstate residents subject to bank discretion so you have to call bank.
Straightforward online app with credit check to verify ID or you can go to branch--but there are not many and all in greater Seattle/Bellevue.

Just received confirmation of online funding being completed for 2 year CD at 2.95. Great online support and quick response from Seattle Bank. May convert some more of no-penalty Ally CD given the spread. Ally has been steadily dropping rates. Got email notice today on their online savings going to 2.1 from 2.2

 

[njhowie]

Goldman Sachs Group Inc. (GS) and Ally Financial Inc.(ALLY) aren't waiting around for the Federal Reserve to cut interest rates.

Goldman told customers Thursday it was cutting the rate on its Marcus high-yield savings account to 2.15% from 2.25%, following Ally's decision to lower its online-savings rate to 2.1% from 2.2%.

The cuts show that banks are positioning themselves for the Fed to lower rates later this year.

https://www.wsj.com/articles/goldman-sachs-ally-financial-beat-the-fed-to-a-rate-cut-11561714200

 

[target2019]

https://www.wsj.com/articles/goldman-sachs-ally-financial-beat-the-fed-to-a-rate-cut-11561714200

Most of us have no chance of reading what's behind that naked link. What does it say, other than Ally cut their rate (as most online banks have/will done/do?

 

[jazz4cash]

Most of us have no chance of reading what's behind that naked link. What does it say, other than Ally cut their rate (as most online banks have/will done/do?

See the extensive quote njhowie posted in the shadow box above the link

 

[24601NoMore]

Navy has a 10-month "special" - 2.75 APY, 2.71 Divvy. $50 min, $100K max. Limit 1 per person. 90 day EWP; can withdraw divs prior to maturity.

 

[ShokWaveRider]

We are all done for the next 24 months. Averaging 3.52% on our cash stash, 50% & 50% split basically evenly between taxable and qualified funds.

 

[ShokWaveRider]

Space Coast CU Florida Still paying premium rates for IRA Money and pretty good for Cashish too. A & A+ rated. https://www.sccu.com/

12 Months 3.00% 3.03%apy
18 Months 3.05% 3.09%apy
24 Months 3.25% 3.29%apy
30 Months 3.30% 3.34%apy
36 Months 3.45% 3.49%apy
48 Months 3.65% 3.70%apy
60 Months 3.80% 3.85%apy