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

[Dtail]

So I opened an Ally no penalty CD for my brother at 0.85% on June 2nd. It still shows that rate as of today.
Shouldn't the rate have been changed to 1% as part of their 10 day guarantee of best rates since opening the CD?

 

[audreyh1]

So I opened an Ally no penalty CD for my brother at 0.85% on June 2nd. It still shows that rate as of today.
Shouldn't the rate have been changed to 1% as part of their 10 day guarantee of best rates since opening the CD?

You have to wait until the 10 days are up.

 

[Helen]

I skipped Ally, Discover, and CapitalOne today and purchased 1yr Treasuries at ~2.6%.

With interest rates rising I wonder if it would be better to invest in three month Treasuries and have them automatically reinvest (at Fido)?

If real estate prices drop enough we may buy a condo in Palm Springs in the next few years, otherwise we will put the money back into a total stock market ETF.

 

[Dtail]

You have to wait until the 10 days are up.

Ah thanks

 

[aja8888]

With interest rates rising I wonder if it would be better to invest in three month Treasuries and have them automatically reinvest (at Fido)?

That's what I have done at Schwab. Every month I have Schwab buy me a $25,000 3 month T Bill at auction and set it for rollover automatically.

 

[audreyh1]

I’ve been laddering 3 and 6 month treasuries.

 

[Happyras]

I’ve been laddering 3 and 6 month treasuries.

I am just now doing the same. The 1.45% we got on the MM at Marcus has been better, but that promo is expiring and I am shifting to more short duration bonds and treasuries, in addition to selling ITM covered calls on SPY......

 

[jimbohoward69]

Does Vanguard offer "rollover" of purchased Treasuries? I can't seem to find an option on any of the menus. Or is it something where the option will appear when it gets close to maturity?

 

[nwsteve]

We have several CDs at Ally. We already cashed our no penalty CDs and moved to T bill, etc. I came across this tool and was amazed that given the big bump by the Fed how many remaining CDs (even one 90 days out) were worth breaking and paying the penalty.
https://www.depositaccounts.com/TOOLS/BREAK-CD-CALCULATOR.ASPX

 

[Eucerin]

I had a 13month CD at 0.5% with Sychrony that expires this December, I canceled it 2weeks ago and paid 6month penalty. I just bought one year treasury with Fido, the rate hasn't finalized yet but currently Fido shows 2.456%. Ultimately the penalty for cancel the 13month CD at 0.5% rate is worth it.

 

[Graybeard]

Does Vanguard offer "rollover" of purchased Treasuries? I can't seem to find an option on any of the menus. Or is it something where the option will appear when it gets close to maturity?

No. Fido does, I think Schwab does but not sure.

 

[aja8888]

No. Fido does, I think Schwab does but not sure.

Schwab does when you buy them at auction.

 

[Graybeard]

Ally has the 12 month CD at 1.50% but a 1 year T bill is 2.89%. Rhetorical question - why would anyone buy the CD?

 

[disneysteve]

Ally has the 12 month CD at 1.50% but a 1 year T bill is 2.89%. Rhetorical question - why would anyone buy the CD?

I know you said it was rhetorical, but the main answer is inertia. If you have a bunch of money at Ally (or wherever), you're more prone to keep it there and just keep rolling things over as they mature. I was guilty of that for a long time. It's only been this year that I started transferring money from Ally to Vanguard and started buying brokered CDs and Treasuries.

 

[audreyh1]

Wow, big jump in T-bill rates today. That must have been some auction!

 

[almost there]

3.3% on 3 yr cd's at Schwab today. Things are just getting started. Wait, if you can.

 

[audreyh1]

Ally has the 12 month CD at 1.50% but a 1 year T bill is 2.89%. Rhetorical question - why would anyone buy the CD?

This is a temporary situation. CDs usually offer better rates than T-bills, but when rates are changing quickly there can be considerable lag.

 

[almost there]

This is a temporary situation. CDs usually offer better rates than T-bills, but when rates are changing quickly there can be considerable lag.

Thats great news. If you bank on cds. Won't be long now.

 

[Graybeard]

Wow, big jump in T-bill rates today. That must have been some auction!

Yes, I turned on CNBC and saw the 2 year at 3.38 IIRC and the 10 year at 3.44 area. I was shocked. Word is leaking out the Fed is going 75 bp on Wednesday

 

[Graybeard]

This is a temporary situation. CDs usually offer better rates than T-bills, but when rates are changing quickly there can be considerable lag.

I have money in my settlement fund at Vanguard to buy 13 week and 26 week T bills. I held off last week knowing the Fed will raise rates this week so the coupons at auction should be better.

I thought there was a shift from CDs offering the best rates to T bills but from what you say this is temporary? Typically is that 6 months later or 1 year later that the CDs are higher? The advantage is there is no state income tax on treasuries whereas CD interest is here.

 

[almost there]

Yes, I turned on CNBC and saw the 2 year at 3.38 IIRC and the 10 year at 3.44 area. I was shocked. Word is leaking out the Fed is going 75 bp on Wednesday

Bout time they picked things up. So far behind the curve

 

[audreyh1]

Thats great news. If you bank on cds. Won't be long now.

In 2018 seemed like it took a year to settle out. Don’t remember more details.

 

[audreyh1]

I have money in my settlement fund at Vanguard to buy 13 week and 26 week T bills. I held off last week knowing the Fed will raise rates this week so the coupons at auction should be better.

I thought there was a shift from CDs offering the best rates to T bills but from what you say this is temporary? Typically is that 6 months later or 1 year later that the CDs are higher? The advantage is there is no state income tax on treasuries whereas CD interest is here.

Seemed like in 2018 it was about a year before CD rates caught up and exceeded t-bills? Banks have to compete for deposits with T-bills.

The treasury auction today appeared to have already baked in this weeks rate hike.

 

[jazz4cash]

A-rated Brighthouse MYGA rates just increased. 3.7, 4.1, and 4.15 for 3, 5, and 7 years 10% withdrawals permitted each year.

 

[Chuckanut]

Quick question on buying CD from Schwab and Fidelity

From what I can tell the Schwab iPad app does not allow us to buy CDs. We have to use the Schwab website.

Fidelity does let us buy CDs using their iPad app.

Correct? Or have I missed something on the Schwab app?