Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here

[Eucerin]

I haven't see Fido publish 1month and 2month new treasuries lately, anyone knows why?

 

[Eucerin]

I haven't see Fido publish 1month and 2month new treasuries lately, anyone knows why?

Sorry, meant to say treasury bills

 

[RE2Boys]

Sorry, meant to say treasury bills

Usually announced Tuesday afternoons two days before the actual auction.

See:chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf

 

[Eucerin]

Usually announced Tuesday afternoons two days before the actual auction.

See:chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf

Thank You!!!
I am in fido and saw the 1 and 2 month treasury bill and rates.
I have $50,462 in the account, I set quantity 50 and yes to Auto Roll, but the msg came up says "auto roll feature is unavailable for the treasury auction order". Is it because not enough money in the account after 50k out?

 

[Eucerin]

I have $50,462 in the account, I set quantity 50 and yes to Auto Roll, but the msg came up says "auto roll feature is unavailable for the treasury auction order". Is it because not enough money in the account after 50k out?

Just FYI. Here is the answer in case this happens to others.
I was going to buy 4 month treasury bill and auto roll; because 4 month treasury bill isn't a common period, Fido can't guarantee there will be another 4 month treasury bill after mine expiries, so no auto roll. It is common for month or two, or quarterly or semi-annual for auto roll.

 

[Gotadimple]

American Express Bank announced interest rates on their high yield savings accounts increases from .50% to .60% effective 4/28.

 

[Turbo29]

When I logged in to CapitalOne a few days ago I noticed they had gone to 0.60% too. Discover Bank still stuck at 0.50%

 

[disneysteve]

When I logged in to CapitalOne a few days ago I noticed they had gone to 0.60% too. Discover Bank still stuck at 0.50%

So is Ally. 0.5%. I’ve been moving cash out of there into short term treasuries.

 

[Montecfo]

These savings rates are pathetically low. But banks have little incentive to raise them as they are awash in reserves.

Treasuries looking good by comparison.

 

[almost there]

Was talking to my brokerage / fixed income desk yesterday.
(I have both Credit union and Brokered CD's)
Asking how much of the future rate hikes are already priced into brokered CD's.
Un like banks, they are now paying 3% on 3, 4, 5 and 10 year CD's. And 2.7% on 2 yr. CD's. Navy bumped up to 1.05% and Pen Fed is at 2.5% on the 5 yr. So plan to move most over to the brokerage.
There thought's are they wont go too much higher. And a looming recession in the next year or 2 could once again bring rates back down. No crystal ball here. But plan to load the boat with 5 yr CD's over the next 6 months. Starting next month. I wonder if we will ever see " normal rates" again.... Looking back at the past 5000 years. )
Am OK with 3-3.5% As my retirement plan can work with zero% growth. Worst case scenario.

Side note, when folks start pulling money out of banks and credit unions for better rates. Then they will reluctantly have to raise rates. But its a long lag. Brokered CD's are months ahead of Banks. (In both directions).

 

[Turbo29]

Brokered CDs are offered by the Banks. They are just sold by brokers instead of directly from the bank. Interestingly, I notice that recently the same banks will offer a directly sold CD at a rate much lower than they will pay when sold through a broker.

My theory is they have a large number of customers who don't even know about brokered CDs who are sort of "captives' and will just take what they are offered. When they have exhausted that pool of funds, they offer some on the brokered CD market and have to pay market rates.

Also, brokered CDs can't be withdrawn early so they are more a guaranteed source of funds for a given time period than a direct CD is.

 

[almost there]

Well, you have to sell a brokered CD for whatever market will bring at that time.
It can work in your favor. A few years ago one of my brokered CD was paying a higher % than the brokerage was currently offering. Sold with no loss, and picked a point or so with a special 40 month 3 3/4% CD at a credit union. (That one matures next Tues)
Jumped the gun a month ago on a 2 yr at 2% brokerage CD. 4 weeks later they are offering 2 yr CD's at 2.7%. So, if I were to sell now, I would take a big loss. So, I will just hold it. Can't win 'em all!

 

[Dtail]

Was talking to my brokerage / fixed income desk yesterday.
(I have both Credit union and Brokered CD's)
Asking how much of the future rate hikes are already priced into brokered CD's.
Un like banks, they are now paying 3% on 3, 4, 5 and 10 year CD's. And 2.7% on 2 yr. CD's. Navy bumped up to 1.05% and Pen Fed is at 2.5% on the 5 yr. So plan to move most over to the brokerage.
There thought's are they wont go too much higher. And a looming recession in the next year or 2 could once again bring rates back down. No crystal ball here. But plan to load the boat with 5 yr CD's over the next 6 months. Starting next month. I wonder if we will ever see " normal rates" again.... Looking back at the past 5000 years. )
Am OK with 3-3.5% As my retirement plan can work with zero% growth. Worst case scenario.

Side note, when folks start pulling money out of banks and credit unions for better rates. Then they will reluctantly have to raise rates. But its a long lag. Brokered CD's are months ahead of Banks. (In both directions).

I am also in the camp of rates going a little higher, but not getting anywhere near the inflation rate and we will not have an early 1980's situation again in terms of those rates.

 

[almost there]

Agree,but secretly would be nice to see a measly 5% on a 5 yr.
(Still below historic norms)

 

[Another Reader]

Agree,but secretly would be nice to see a measly 5% on a 5 yr.
(Still below historic norms)

Yeah, 4 and 5 percent were what Countrywide and Wachovia were tossing out in 2008. Had a few Countrywides and one decent sized Wachovia. Countrywide went to B of A and that sweet Wachovia went to Wells Fargo. The Wachovia was 5 percent and five years if I recall.

 

[Sue J]

DiscoverBank is at 0.60% this morning.

 

[target2019]

American Express Bank announced interest rates on their high yield savings accounts increases from .50% to .60% effective 4/28.

Discover Bank has been .60% for a while. Not that it matters a whole lot, 0.50 vs. 0.60%.

 

[Chuckanut]

Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here

Discover Bank has been .60% for a while. Not that it matters a whole lot, 0.50 vs. 0.60%.

I’m building a ladder of 26 week t bills for money I may need soon. . Twice the above rate.

 

[disneysteve]

I’m building a ladder of 26 week t bills for money I may need soon. . Twice the above rate.

I’ve also been gradually moving excess cash from Ally into short term t bills. It’s silly not to double your interest if you have no immediate need for the money. I’m having one mature each month so just in case we need some cash it will be there. If not I’ll just roll it into a new one.

 

[Livefree]

Was talking to my brokerage / fixed income desk yesterday.
(I have both Credit union and Brokered CD's)
Asking how much of the future rate hikes are already priced into brokered CD's.
Un like banks, they are now paying 3% on 3, 4, 5 and 10 year CD's. And 2.7% on 2 yr. CD's. Navy bumped up to 1.05% and Pen Fed is at 2.5% on the 5 yr. So plan to move most over to the brokerage.
There thought's are they wont go too much higher. And a looming recession in the next year or 2 could once again bring rates back down. No crystal ball here. But plan to load the boat with 5 yr CD's over the next 6 months. Starting next month. I wonder if we will ever see " normal rates" again.... Looking back at the past 5000 years. )
Am OK with 3-3.5% As my retirement plan can work with zero% growth. Worst case scenario.

Side note, when folks start pulling money out of banks and credit unions for better rates. Then they will reluctantly have to raise rates. But its a long lag. Brokered CD's are months ahead of Banks. (In both directions).

I see Fidelity is paying 3.20% on 5 yr and 3% on 3 and 4yr CD's now. Do you know if it's possible to get the monthly interest deposited to a bank account on these, or just payable at the end of maturity?

 

[jim584672]

I see Fidelity is paying 3.20% on 5 yr and 3% on 3 and 4yr CD's now. Do you know if it's possible to get the monthly interest deposited to a bank account on these, or just payable at the end of maturity?

Most brokered CDs tend to be semi-annual, some are monthly. It should say in the description.

 

[almost there]

I see Fidelity is paying 3.20% on 5 yr and 3% on 3 and 4yr CD's now. Do you know if it's possible to get the monthly interest deposited to a bank account on these, or just payable at the end of maturity?

Depends on who is selling the CD, as there are dozens of banks listed.
I only have access to see Charles Schwab brokered CD's.
But believe they are all the same as far as interest paid, and not re-invested.

Most Coupon Frequency pays Semi-annually.
The interest is not re-invested into the CD on the brokered CD's I am aware of. But is put into a sav. or other type of account you choose. So, yes after 6 months it could be drawn out monthly.

Ch Sch has been at 3.05% on 5 yr for a week or so. And expect things to climb a bit going forward.

 

[Dtail]

Most brokered CDs tend to be semi-annual, some are monthly. It should say in the description.

+1

 

[John Galt III]

I see Fidelity is paying 3.20% on 5 yr and 3% on 3 and 4yr CD's now.

I plan to bite on a 3% 5 year cd if and when PenFed or Andrews FCU get there, and just put 30% of my cash into it, then wait for even higher interest, then deposit more. I have too many separate accounts already, lol. Don't want to sign up for another one, like Fidelity. Wow, how lazy is that, eh?

 

[Gumby]

PenFed CD rates as of today:

6 Month 0.60%
12 Month 1.25%
15 Month 1.40%
18 Month 1.60%
2 Year 1.75%
3 Year 2.10%
4 Year 2.25%
5 Year 2.50%
7 Year 2.75%

https://www.penfed.org/accounts/mon...cid=em-1024814&cid=PRODDM21889&bid=1358383388