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

[almost there]

"USALLIANCE Financial =24 month 3% and 60 month .80%. " https://www.depositaccounts.com/banks/usalliance-financial.html#rates

Makes me want to lock some up at 3.20 for 5 yrs. in a brokerage account.
But, in the end... Am sure we will see higher rates over the the summer..
Just no fun waiting...

 

[24601NoMore]

"USALLIANCE Financial =24 month 3% and 60 month .80%. " https://www.depositaccounts.com/banks/usalliance-financial.html#rates

Makes me want to lock some up at 3.20 for 5 yrs. in a brokerage account.
But, in the end... Am sure we will see higher rates over the the summer..
Just no fun waiting...

Aren't longer term (say, 5 year CD) rates tied more to the 5-year Treasury than to Fed Funds rate?

Said a different way..just because the Fed raises rates at their June and August meetings (which is likely..2X 50 bps), I wouldn't assume that 5-year CD rates will increase. In fact, 10 year yields have already dropped from (IIRC) ~3.2 to 2.8%..

I heard it said recently by someone far smarter than me that 10 year Treasuries reflect expectations of the economy, and 2 year tracks FFR more. (That's apparently why a 2/10 inversion is such a big deal). I have no idea where 5 year Treasuries fit or what an increase in FFR would mean to 5 year CD/Certificate rates, though..

 

[almost there]

Yep, not easy to figure out.
5 yrs ago when the 5 yrs treasury was 2.5% - 2.75%
It was easy to get 3%+ on 5 yr CD's.
Most of the time, CD's are higher that Treasury bill's.
Am thinking most institutions are just flush with cash. Like never before.
Could be 100% wrong. Just a best guess.

With the fed signaling 12-18 more months of rate hikes.
I am betting we are not seeing the high's just yet at .75%-1% current target. .
"Fed policymakers said in March they expect rates to climb to nearly 2% on average by the end of this year,
and close to 3% by the end of 2023."

Just saw $6.36, $6.56 and $ 6.76 for prem. $6.46 for diesel on my way back from Lowes.
So, am thinking we are not out of the woods just yet.

 

[John Galt III]

Laddering 1st 5-yr CD chunk since 2019.

https://www.connexuscu.org/

3.21% yield.

Expecting rates to make it up to 4%.

I may do something similar. May get 2.75% now at Penfed for 3 or 5 years CD, hold onto rest of my cash and see what happens a few months from now. Hoping for 4.5% 5 year cd by then.

 

[Montecfo]

Aren't longer term (say, 5 year CD) rates tied more to the 5-year Treasury than to Fed Funds rate?

Said a different way..just because the Fed raises rates at their June and August meetings (which is likely..2X 50 bps), I wouldn't assume that 5-year CD rates will increase. In fact, 10 year yields have already dropped from (IIRC) ~3.2 to 2.8%..

I heard it said recently by someone far smarter than me that 10 year Treasuries reflect expectations of the economy, and 2 year tracks FFR more. (That's apparently why a 2/10 inversion is such a big deal). I have no idea where 5 year Treasuries fit or what an increase in FFR would mean to 5 year CD/Certificate rates, though..

Yes that is true. Fed funds rate will affect short term rates most directly.

Sometimes Fed funds hikes will actually cause the 10 or 30 year bond to rally, reducing rates. Why? Fed actions may rein in inflation over the longterm. Longer term rates reflect long term inflation expectations.

I doubt we have seen the highs on the 5-year for this cycle.

 

[Idealer]

Has anyone used the Paypal saving account which is now offering 0.85% APY? It seems like a decent rate and maybe convenient for someone who already has a paypal account, but I haven’t heard much about it. Any gotchas?

 

[jim584672]

Ally finally went to 0.75%, better late than never.

 

[erkevin]

Marcus is now at .85%

 

[erkevin]

Has anyone used the Paypal saving account which is now offering 0.85% APY? It seems like a decent rate and maybe convenient for someone who already has a paypal account, but I haven’t heard much about it. Any gotchas?

Most funds in Paypal are not FDIC insured. Paypal is not a bank.

 

[mrfeh]

Ally finally went to 0.75%, better late than never.

And still behind other options, like Synchrony.

 

[wolf]

Ally finally went to 0.75%, better late than never.

Ally. No penalty 11 mo. Cd. 0.85%

Only issue. You cannot close CD online. Have to call Ally. (long wait
times). When you want to take advantage of rising CD rates at Ally.

No penalty Cd, same as keeping $ in high yield saving acct. at Ally.

 

[Idealer]

Most funds in Paypal are not FDIC insured. Paypal is not a bank.

You got me to log into paypal and look up more details. Funds are held at Synchrony Bank via partnership with paypal. However, there are a lot of fees and fine print details, including:

Your cash funds held in balance are FDIC insured if you have:
- Enrolled in Direct Deposit or
- Bought cryptocurrency

So I interpret that to mean funds are not FDIC insured without direct deposit or a crypto buy.

Too bad, i was hoping to get a slightly better return without opening yet another bank account somewhere.

 

[nwsteve]

Ally. No penalty 11 mo. Cd. 0.85%

Only issue. You cannot close CD online. Have to call Ally. (long wait
times). When you want to take advantage of rising CD rates at Ally.

I wonder if this a new policy to slow the withdrawal rate. Two/three weeks ago, I closed online 3 NP CDs--moved money to their HY Savings which was pulled next day by Fido. Funds used for ST bonds

 

[Eucerin]

Kearny bank in Fido offers 15month CD for 2.3%, that's the highest I have seen in CD so far

 

[Happyras]

I was about to do a treasury bill ladder, when I realized Marcus is now at 1.45% with referral bonus, AARP and the 0.85 base rate. Hard to beat for full liquid MM account.

 

[RetiredAt55.5]

Ally. No penalty 11 mo. Cd. 0.85%

Only issue. You cannot close CD online. Have to call Ally. (long wait
times). When you want to take advantage of rising CD rates at Ally.

No penalty Cd, same as keeping $ in high yield saving acct. at Ally.

I just closed 21 no penalty CD's at Ally on May 22nd. Did it all online.

Maybe you had to call to close them if it was less than 7 days since you opened them, as they do have a 7 day restriction.

 

[audreyh1]

Ally. No penalty 11 mo. Cd. 0.85%

Only issue. You cannot close CD online. Have to call Ally. (long wait
times). When you want to take advantage of rising CD rates at Ally.

No penalty Cd, same as keeping $ in high yield saving acct. at Ally.

Are you sure? I just closed and reopened some no penalty CDs online this past Monday 5/30, no problem.

I wonder if this a new policy to slow the withdrawal rate. Two/three weeks ago, I closed online 3 NP CDs--moved money to their HY Savings which was pulled next day by Fido. Funds used for ST bonds

No, this is not their current policy. Online early withdrawal is still available.

 

[John Galt III]

I’m taking credit for the Ally rate increase. I closed my account there two days ago.

If Penfed raises their 7 year rate, I will take credit for it! I just locked in 3.0% 7 year for $5,000. If it goes up to 3.5%, will buy more. It's all good, as they say.

 

[Dtail]

Are you sure? I just closed and reopened some no penalty CDs online this past Monday 5/30, no problem.


No, this is not their current policy. Online early withdrawal is still available.

I can confirm this too, as I just switched the No Penalty CD for my brother from 0.55 to 0.85 using the online banking function.

 

[Happyras]

I see new Retail Notes on Schwab, particularly the Citi 3.7 2 year and 4.0 3 year. Rated A, I see only a slight risk for the extra YTM and YTW, but they are wholly callable after the first year, and quarterly there after. Advice from the bond desk is they are not very liquid if you need to sell, for what ever reason they trade low ball likely due to call feature. Anyone else considering these, the equiv Treasury note 2.53 and 2.71, so they provide a 1.3% premium for risk over Treasuries.

 

[Chuckanut]

I see new Retail Notes on Schwab, particularly the Citi 3.7 2 year and 4.0 3 year. Rated A, I see only a slight risk for the extra YTM and YTW, but they are wholly callable after the first year, and quarterly there after. Advice from the bond desk is they are not very liquid if you need to sell, for what ever reason they trade low ball likely due to call feature. Anyone else considering these, the equiv Treasury note 2.53 and 2.71, so they provide a 1.3% premium for risk over Treasuries.

Emphasis added...


On relative terms that is 40% to 50% more interest. I won't bite because I have other plans, but it is interesting.

 

[wolf]

I can confirm this too, as I just switched the No Penalty CD for my brother from 0.55 to 0.85 using the online banking function.

Thanks, for the info. In the past, I was able to close no penalty Ally CD, online.

Recently, when online, not able to "find", the correct "place" to click to close

CD early. Will have to double check. Thanks

 

[TheCaptain67]

Alliant Credit Union finally went to 0.75% on their “high yield” savings accounts.

 

[Golden sunsets]

I also just clicked early withdrawal on 2 Ally jumbo CD's and funded 2 no penalties for the .85% rate.

Sent from my SM-T510 using Early Retirement Forum mobile app

 

[audreyh1]

Thanks, for the info. In the past, I was able to close no penalty Ally CD, online.

Recently, when online, not able to "find", the correct "place" to click to close

CD early. Will have to double check. Thanks

When I select a CD and look at the details, I see early withdrawal in the menu bar near the top.

If the CD is less than 10 days old you probably can’t do anything.