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

[Silver]

I've never heard of Bask Bank. Why and how are they so much higher than everyone else?

Bask has been an online bank since 1999 through Texas Capital Bank. They started their online savings with offering travel miles with American Airlines, and later offered accounts earning interest. They are FDIC insured up to $250,000.

I do not know how they are able to offer a higher interest right now, but I'm happy to have it.

 

[erkevin]

Re: Bask Bank. In reading their financial health reports, they have had a net depositor loss over the past year (losses in both customers and total deposits). My guess is that this is their gamble to attract new customers. Their other financial health indicators are strong.

 

[Al18]

Fidelity had 3.60% 5 year CD earlier today, though sold out. My guess is you’ll see 4.00% 5 year CD’s in the next 2-3 weeks.

 

[Gotadimple]

Bask has been an online bank since 1999 through Texas Capital Bank. They started their online savings with offering travel miles with American Airlines, and later offered accounts earning interest. They are FDIC insured up to $250,000.

I do not know how they are able to offer a higher interest right now, but I'm happy to have it.

I suspect it's a way to generate deposits. I did notice this footnote on their FAQ page:
Bask Bank and BankDirect are divisions of Texas Capital Bank. Member FDIC. The sum of your total deposits with (i) Bask Bank; (ii) BankDirect; and (iii) Texas Capital Bank are insured up to $250,000. Additional coverage may be available depending on how your assets are held.
https://www.baskbank.com/faq#2254641303-2555903753-5

 

[Graybeard]

That was smart. I wish I had done the same thing. I'm wondering if it's too late and whether selling my bond funds now to invest in T bills would be locking in losses. I have bond funds in my retirement accounts at both Vanguard and Fidelity. They aren't down as much as my stock funds, but they are down significantly. I suppose I could hedge my bets and leave some of my money in the bond funds but transfer some of the bond funds into an equity fund and some into treasuries. I also could use some of my cash and put it into treasuries. I have some money in my settlement fund at Vanguard.

Could you or someone else provide me (or direct me) to the clearest information about how to go about buying treasuries? I am a total newbie to this.

I lost a lot to nav depreciation but decided enough was enough. I locked in the loss to prevent future losses and with the Fed on a rate rising jihad you can be pretty much assured the losses you have today will only get worse as this year and maybe next progresses.

I buy the T bills at Vanguard, no idea how to do it at Fido. If you read this link it explains how to do it at Vanguard. It really is easy, BTW I buy at Auction not the secondary market. 13 week T bills are auctioned every week, I think the 26 week are also every week. You need to have the money in your settlement fund to purchase, when the bills are ready to be bought you'll see Buy on the line for the bill. I buy them in both my taxable account and RO IRA. BTW, if you buy them in a tax deferred account you have to "SELL" the shares of the investment you are using for the purchase. If you "EXCHANGE" the money goes into the mutual fund equivalent not the settlement fund! I learned that the hard way.
https://thefinancebuff.com/treasury-bills-cd-money-market.html


ETA - I just realized the link also tells how to buy at Fido.

 

[NomDeER]

I buy the T bills at Vanguard, no idea how to do it at Fido. If you read this link it explains how to do it at Vanguard. It really is easy, BTW I buy at Auction not the secondary market. 13 week T bills are auctioned every week, I think the 26 week are also every week. You need to have the money in your settlement fund to purchase, when the bills are ready to be bought you'll see Buy on the line for the bill. I buy them in both my taxable account and RO IRA. BTW, if you buy them in a tax deferred account you have to "SELL" the shares of the investment you are using for the purchase. If you "EXCHANGE" the money goes into the mutual fund equivalent not the settlement fund! I learned that the hard way.
https://thefinancebuff.com/treasury-bills-cd-money-market.html

Thanks. I really appreciate it. I'll give Vanguard a call to make sure I do any purchases correctly in my IRA.

So, when you make the purchase, is it correct that you don't know what interest rate you are going to get? You can just roughly approximate by what the recent interest rates have been?

 

[JoeWras]

Should I destroy my CD ladder at Ally?

Should I destroy my CD ladder at Ally?

Years ago, I built pretty big ladder of CDs at Ally, about 20. Yeah, maybe ridiculous.

In recent years, I've renewed all but 8 with "No penalty CD". I can keep the 8 which I think is more than enough for a ladder. At renewal, I can make adjustments to get a decent spaced ladder again.

Meanwhile, for all the "no penalty" CDs, I think I just just nuke 'em all. Today. Like. Right. Now.

They are all paying less than .6% and have maturity anywhere from next month to the first month next year. The cash will go into the money market which is now paying .9%. I can also transfer some of this easily to Vanguard and get a few T-bills which even the short term 13 week is paying well over 1%.

Make sense?

 

[frank]

Looks like the CD rates are sending us a message from the future.
As to how long the rate increase will last.
Today at CH Sch. 1yr 2.900 / 18 mo. 3.050 / 2 yr 3.150, (3), (4) and (5) yr all. 3.250%
May hold off on the even amount 5 year ladder I had planned. Build a VERY small 5 yr. ladder. And put the bulk in to 5 yr CD's. When we get into the 3.5%- 4% range.
Thoughts?

I was wondering what you are referring to with CH Sch?

 

[Montecfo]

Should I destroy my CD ladder at Ally?

Years ago, I built pretty big ladder of CDs at Ally, about 20. Yeah, maybe ridiculous.

In recent years, I've renewed all but 8 with "No penalty CD". I can keep the 8 which I think is more than enough for a ladder. At renewal, I can make adjustments to get a decent spaced ladder again.

Meanwhile, for all the "no penalty" CDs, I think I just just nuke 'em all. Today. Like. Right. Now.

They are all paying less than .6% and have maturity anywhere from next month to the first month next year. The cash will go into the money market which is now paying .9%. I can also transfer some of this easily to Vanguard and get a few T-bills which even the short term 13 week is paying well over 1%.

Make sense?

Yes. Do it yesterday.

 

[Turbo29]

E*trade Bank (Morgan Stanley now) was competitive with Capital One, Discover, etc. but in 2020 when rates cratered they went down to 0.05% so I just kept a few dollars there to keep the account open. They stayed at that 0.05% until yesterday I guess and then this morning, I got this email:

"We've got exciting news: The interest rate on your Premium Savings Account from Morgan Stanley Private Bank (previously E*TRADE Bank) just increased to 1.40% APY¹, 20X the national average²."

Wondering why Morgan Stanley all of the sudden wants to draw in money to these accounts. They diidn't seem to care ever since they took over E*Trade.

The rest of the email: "The US Federal Reserve has recently been increasing the federal funds rate, which is a big driver of savings rates. More importantly, we're committed to giving you a very competitive rate that keeps your money working as hard as possible for you. Your 1.40% APY rate has already been applied to your account If you have deposits at other financial institutions (national savings average of 0.07%²), we've included the link below to transfer funds into your 1.40% APY Premium Savings Account. Just click below to get started."

 

[almost there]

3.5% 5 yr cds sold out yesterday. And already / again today. Holding out for 4%. But its not easy.

 

[JoeWras]

The E*Trade thing will just help raise the others.

I dismantled most of my ladder on Ally this morning. The web site was a bit sluggish. I noticed the call queue time was almost 30 minutes. I've never seen it that high.

There's clearly a lot of activity going on. People are moving money.

 

[Chuckanut]

The E*Trade thing will just help raise the others.

I dismantled most of my ladder on Ally this morning. The web site was a bit sluggish. I noticed the call queue time was almost 30 minutes. I've never seen it that high.

There's clearly a lot of activity going on. People are moving money.

One gets the sense there is a lot of bottled up frustration with things like High Yield Accounts that pay 0.5%, and it's finally being vented. I think this is similar to the travel boom we have seen. People waited, and waited and waited, and when things opened up they jumped onto planes, cruises ships and into their cars and headed out.

 

[Turbo29]

1.40% APY

Link for anyone who's interested:

Premium Savings Account from Morgan Stanley Private Bank

 

[Drake3287]

Should I destroy my CD ladder at Ally?

Years ago, I built pretty big ladder of CDs at Ally, about 20. Yeah, maybe ridiculous.

In recent years, I've renewed all but 8 with "No penalty CD". I can keep the 8 which I think is more than enough for a ladder. At renewal, I can make adjustments to get a decent spaced ladder again.

Meanwhile, for all the "no penalty" CDs, I think I just just nuke 'em all. Today. Like. Right. Now.

They are all paying less than .6% and have maturity anywhere from next month to the first month next year. The cash will go into the money market which is now paying .9%. I can also transfer some of this easily to Vanguard and get a few T-bills which even the short term 13 week is paying well over 1%.

Make sense?

At this point I think I'd wait a couple of weeks or so, at least until the rates increase from this weeks Fed rate increase. By throwing those No penalty CD's into a locked rate today, you'd be cheating yourself out of another .50% in the coming weeks. At this point a few weeks isn't going to make a big difference for you.

 

[JoeWras]

At this point I think I'd wait a couple of weeks or so, at least until the rates increase from this weeks Fed rate increase. By throwing those No penalty CD's into a locked rate today, you'd be cheating yourself out of another .50% in the coming weeks. At this point a few weeks isn't going to make a big difference for you.

No, what I did was killed the no-penalty CDs at 0.5%, and dumped them into the money market (immediately) for 0.9%.

I can always open another CD with that money market money at any time.

I have penalty CDs that will come due and can add money to those also.

I am moving some of that Ally MM money to T-bills. Yesterday's 13 week non-competitive settled at 1.67%. And the upcoming 4 week settled at 1.197%.

 

[Gotadimple]

I was wondering what you are referring to with CH Sch?

Charles Schwab

 

[aja8888]

Anyone taking advantage of the Capital One Performance Savings account $450 bonus for opening an account and depositing $50K for 90 days?

 

[Graybeard]

Thanks. I really appreciate it. I'll give Vanguard a call to make sure I do any purchases correctly in my IRA.

So, when you make the purchase, is it correct that you don't know what interest rate you are going to get? You can just roughly approximate by what the recent interest rates have been?

Correct, the rates are set during the auction based upon bidding I would assume.

Here's a link to see the schedule for Treasury bill, note and bond auctions.
https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf

This link will show you what the Treasury bills, notes and bond coupons were to get an idea of what you can get, it will be lower or higher or it might be the same as the last date in the chart. Click the 1st link called Daily Treasury Par Yield Curve Rates.
https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics

 

[Graybeard]

No, what I did was killed the no-penalty CDs at 0.5%, and dumped them into the money market (immediately) for 0.9%.

I can always open another CD with that money market money at any time.

I have penalty CDs that will come due and can add money to those also.

I am moving some of that Ally MM money to T-bills. Yesterday's 13 week non-competitive settled at 1.67%. And the upcoming 4 week settled at 1.197%.

IMO you did the right thing. The No Penalty CDs are paying nothing and there's no penalty to close them. For the CDs that would have an early withdrawal penalty I guess it depends upon how quickly they mature and what the penalty is.

 

[NomDeER]

Correct, the rates are set during the auction based upon bidding I would assume.

Here's a link to see the schedule for Treasury bill, note and bond auctions.
https://home.treasury.gov/system/files/221/Tentative-Auction-Schedule.pdf

This link will show you what the Treasury bills, notes and bond coupons were to get an idea of what you can get, it will be lower or higher or it might be the same as the last date in the chart. Click the 1st link called Daily Treasury Par Yield Curve Rates.
https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics

Thanks! I ordered my first Treasury bills today. The Vanguard rep asked if I wanted them from auction or the secondary market. I'm not very familiar with the options and went with the auction. I hope that was the right choice. He said the interest rate was anticipated to be around 1.59% but I wouldn't know until after the auction.

 

[Trailwalker]

Anyone taking advantage of the Capital One Performance Savings account $450 bonus for opening an account and depositing $50K for 90 days?

I like offers like that, but it looks like the bonus isn't actually paid until after six months. Still an interesting offer.

 

[Freedom56]

This isn't a CD but just as safe. It is a new Corporate note from Canadian Imperial Bank of Commerce (CIBC) that is rated (A-/A2) with a duration of 42 months that you can find on Fidelity and other brokerages that will be issued 6/24/22 and matures 12/24/25 and pays semi-annually at a rate of 4.47%. The earliest call date is 12/24/23 and the next is 12/24/24. The CUSIP is 13607XA98.

Given how weak the markets are, I plan to wait for this one to hit the secondary market next week and bid below par value for a better yield.

On a positive note, it's encouraging to see that high grade bonds are being issued with higher coupons for those seeking income.

 

[Debinnov a]

I like offers like that, but it looks like the bonus isn't actually paid until after six months. Still an interesting offer.

What is the interest rate on that savings account?

 

[Trailwalker]

What is the interest rate on that savings account?

0.90%

The Forbes article talked about bonus payment in six months, but I see Capital's site says 60 days after deposit and then 90 days after that for 150 days.

https://www.capitalone.com/bank/save22

My DW accuses me of having a money shuffling hobby. I still have Live Oak money to shuffle back after the waiting period.