John Galt III
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Did it. Snapped up a modest amount of PenFed 5 year 3.5 % CD. Got a lot more cash waiting and hoping for higher rate, but now I can relax for a while.
Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here
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Be careful with this. You can accidentally mistype the name and enter your credentials on a bogus website.
I actually prefer my search engine to redirect me, since they will catch my typo and send me to the correct site.
But really the best way is to use a password manager. They’ll only log you in if you’re at the correct website.
aja8888
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Bought 3.35% Wells Fargo 2 year CD at Schwab today. Just picking away...
lawman
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Bought I yr C.D at Schwab today paying 3% but they were gone a few minutes later.
almost there
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Am thinking CDs will all go up after the next rate hike.
But may drift down a hair till then as they have this week.
I got tired of waiting and bought in Monday at Schwab.
9 month 2.6%, (2) yr 3.3%, (3) yr 3.4%, (4) yr 3.4% (5) yr 3.5%.
Was surprised how quickly the 5 yr at 3.5% sold out. And didn't return?
But if you can wait, you can probably do better in Aug. Just a guess.
But, as mentioned I got tired of waiting.....
Am thinking CDs will all go up after the next rate hike.
But may drift down a hair till then as they have this week.
I got tired of waiting and bought in Monday at Schwab.
9 month 2.6%, (2) yr 3.3%, (3) yr 3.4%, (4) yr 3.4% (5) yr 3.5%.
Was surprised how quickly the 5 yr at 3.5% sold out. And didn't return?
But if you can wait, you can probably do better in Aug. Just a guess.
But, as mentioned I got tired of waiting.....
Super curious how it all plays out. Does another 0.5-0.75bps in July push rates higher? Is the market calling the feds bluff that they can't raise much more?
Sunset
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
I use bookmarks from the browser, or the URL I've saved in my password manager. Some scam sites pay to get to the top of the search function, so that is not a guaranteed way of getting to the correct URL.
Freedom56
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Did you buy those CIBC 4.47% notes or the Citibank 5% notes? They are both now trading above par.
Sunset
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I was too slow, or couldn't find them on Vanguard or TD Ameritrade.
If you know of other good candidates, I'm all ears
Have bought some Treasuries, even then I have found the broker sites don't track the money like they do for stocks.
Example: say I have $42K in cash, if I put in an order for $10K of stock, my cash pile drops to $32K even if the stock order has not filled.
When I buy treasuries, after the order, the cash pile still says the original amount.
Makes it more confusing to have 2 ways to treat orders.
I don't have a Fidelity account.
Freedom56
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I was too slow, or couldn't find them on Vanguard or TD Ameritrade.
If you know of other good candidates, I'm all ears
Have bought some Treasuries, even then I have found the broker sites don't track the money like they do for stocks.
Example: say I have $42K in cash, if I put in an order for $10K of stock, my cash pile drops to $32K even if the stock order has not filled.
When I buy treasuries, after the order, the cash pile still says the original amount.
Makes it more confusing to have 2 ways to treat orders.
I don't have a Fidelity account.
TD Ameritrade had TD Bank 5% 2027 notes (rated A1/A+) last week. Fidelity did not. It sold out pretty quickly.
...or 1.3% if you added the AARP +0.1% bonus!
AND now they are offering the referral bonus of an additional 1.0% on top of that for a total of 2.3% MM no limit, all accounts.
I would love to share the referral bonus code with someone, I ran out of family members to open accounts. Here is the link to open an account and get the additional 1%. Nice part of this is, if you use the link, we both get the 1% for 3 months. Then if you share your link, they add another 3 months. You can apply a referral bonus up to 5 times in one calendar year, so effectively you get this rate for 15 months if you have 5 referrals.
Here are the terms;
https://www.marcus.com/us/en/savings/referral-offer-terms
This is for new customers or past customers that have not had an account for 12 months.
Here is the link;
https://www.marcus.com/share/GAR-7Y6-PQZF
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pb4uski
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
You might try this link: https://personal.vanguard.com/us/FixedIncomeHome as it seems to work for me without logging in using Win 10 and Chrome.
Is there any PAR that you would consider selling them back at?
Freedom56
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I don't understand your question. Par is $100 for those notes. They are both callable in 18 months and 24 months respectively. With treasury yields dropping off, these notes are trading above par and adjusting for current yields. I could theoretically sell them now for a gain plus and accrued interest.
The outflows in bond and equity funds continued but have eased off.
From Lipper:
REFINITIV LIPPER FUND FLOW REPORT NEWSLINE FUND FLOW REPORTS FOR THE WEEK ENDED 06/29 ARE NOW AVAILABLE.
For the week ended 06/29/2022 ExETFs - All Equity funds report net outflows totaling -$5.578 billion, with Domestic Equity funds reporting net outflows of -$2.689 billion and Non-Domestic Equity funds reporting net outflows of -$2.889 billion...ExETFs - Emerging Markets Equity funds report net outflows of -$1.131 billion...Net outflows are reported for All Taxable Bond funds of -$3.726 billion, bringing the rate of outflows for the $3.511 trillion sector to -$8.067 billion/week...International & Global Debt funds posted net outflows of -$0.805 billion...Net outflows of -$3.644 billion were reported for Corp-Investment Grade funds while High Yield funds reported net outflows of -$1.593 billion...Money Market funds reported net outflows of -$13.746 billion...ExETFs - Municipal Bond funds report net outflows of -$1.793 billion.
The asset value of major bond ETFs have asset values below their March 2020 lows and are headed for their 2009 lows. The only thing that would prevent that from happening is a rapid drop in interest rates back to zero. The asset erosion is a result of repeated "buy high sell low" strategies forced onto these funds.
With Revlon declaring bankruptcy and the stock rising from $1 and change to $8 and then easing off to $5 and change indicates that the casino mentality in the stock market is still alive and well. Even the crypto Ponzi scheme continues.
The reason I made the suggestion is that people blindly run the search and click on the first link in the results, which may not be where they want to go. Search results can have phishing/scam sites in them.
+1 on using a password manager.
Thankyou to whoever used the referral code, I just got another 1% added to my Marcus! Hard to beat 2.3% FDIC liquid MM account with no cap on how much. Beats even a 1 year tbill.....I can only get 3 more referral bonuses this year, but I think my link posted earlier will still give the extra 1% to anyone who uses it.
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I misspoke. Is there any NAV that you would consider selling early? Say the price of the bonds went up to 150. Would you sell?
Another Reader
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I looked through the Fidelity and Vanguard money market funds today. I think your premium MM is FZDXX, now paying 1.41 percent. It contains a mix of financial corporation and government paper. A little higher risk. On most MM products, Vanguard pays a higher rate, probably because of lower expenses. VMRXX and VMFXX pay 1.39 and 1.41 percent respectively. Both are federal money market funds.
My recollection from years ago when I set up the Vanguard account, their money market funds paid a higher rate than the competition. Seems that still holds true.
audreyh1
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That’s right, FZDXX which now yields over 1.4% is a premium MM fund and thus subject to stricter rules during a liquidity crisis. The Fidelity government MM funds aren’t paying quite as high, but approaching or exceeding 1%. Fidelity has higher ERs on their MM funds compared to Vanguard.
Golden sunsets
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For those who don't have access to Vanguard or Fidelity, another option: TMCXX, a Blackrock Temp cash fund is yielding 1.48%, in its most recent 7 day yield. Minimum entry amount is $100,000 but once in your holdings can float down to as little as $1, and minimums no longer apply.
Sent from my SM-T510 using Early Retirement Forum mobile app
Sent from my SM-T510 using Early Retirement Forum mobile app
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Another Reader
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I recall years ago a number of these funds had high minimums. What is a "premium" money market fund and what are the stricter liquidity rules? Is there a source to read up on this?
audreyh1
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It’s a prime money market type fund as described on this page https://www.fidelity.com/mutual-fun...dGWnO01TJ35zmUdMq2RoCeYgQAvD_BwE&gclsrc=aw.ds and the minimum initial investment is $100,000 although you can draw in down way below that.
More here: https://www.fidelity.com/learning-c...ucts/mutual-funds/what-are-money-market-funds
How do Prime MMFs manage liquidity? https://www.sec.gov/files/how-do-prime-mmfs-manage-liquidity-buffers.pdf
More here: https://www.fidelity.com/learning-c...ucts/mutual-funds/what-are-money-market-funds
How do Prime MMFs manage liquidity? https://www.sec.gov/files/how-do-prime-mmfs-manage-liquidity-buffers.pdf
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Another Reader
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So the "premium" designation refers to the account minimum and possibly the paper held in the fund? There are prime MM funds with lower minimums.
I have had VUSXX, the Vanguard treasury MM fund for probably 25 years. If I recall, the minimum used to be higher. When they moved from treasury-only to a broader range of treasury investments, I moved the bulk of the account to Fidelity, despite the higher expenses. I have 2008 burned in my brain, which affected my concept of security.
Vanguard only has government MM funds. No commercial paper. Interesting...
It seems to make sense to move money into the higher paying Vanguard funds, as they are equal to nearly equal in return to the Fidelity premium fund. Am I missing something?
audreyh1
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The Premium name is probably due to it being an institutional account with a $100K initial investment minimum.
I have never had a Vanguard account. That may be the only thing you are missing.
I have never had a Vanguard account. That may be the only thing you are missing.
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