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

[audreyh1]

I just opened an account at synchrony for my savings and everything went smoothly. I was thinking of putting an additional 50k in that my be used in a house purchase soon. Can anyone tell me what kind of hoops I might have to jump through to access that money and how long it might take.


Thanks for any replies.

Once you have a bank linked for transfers, I expect it will normally take only 1 day after a simple login to setup the transfer (a couple of minutes online). It does depend on the receiving institution.

I’ve transferred up to $200,000 back and forth from my brokerage no problem. I believe the current transfer limit is $250,000.

 

[TheCaptain67]

Alliant credit union raised saving acct rate from 1.05% to 1.2% today.

 

[Drake3287]

I'm sure many of you already heard the news reports this morning that the Fed is expected to raise rate possibly a full 1% later this month. With Capitol One currently offering a 2.5% CD, we certainly have hopes for 3% or better in the coming weeks.

Never thought I'd be raving about a 3% CD rate!

 

[kongmen]

Thanks for the replies. It sounds like I will be able to transfer the funds to a brick and mortar when I need the money.

 

[wrigley]

Once you have a bank linked for transfers, I expect it will normally take only 1 day after a simple login to setup the transfer (a couple of minutes online). It does depend on the receiving institution.

I’ve transferred up to $200,000 back and forth from my brokerage no problem. I believe the current transfer limit is $250,000.

I called Synchrony yesterday and asked about ACH transfers into their High Yield Savings from my Credit Union. I was told the limit was $500,000.

Mike

 

[Dash man]

Ally just went to 1.25%. Still lagging others.

 

[Another Reader]

Barclays still at at 1.10. Canned response from customer service is humorous.

"The interest rate and Annual Percentage Yield are established at our discretion and, as permitted by law, are variable and subject to change at any time without notice. If you are interested in an account with a fixed interest over a specified period of time, we can recommend a Certificate of Deposit. "

Think they need to exercise their discretion.

 

[Gotadimple]

Starting today 7/15 American Express Savings High Yield interest rate moves to 1.15% up from 1.00% declared on 6/29.

 

[xlf11]

CIBC Agility Savings 1.52% as of 7/14.

 

[madatrub]

Wells Fargo and JPM just hit 3% CD offerings 1yr.

 

[almost there]

Here are a couple more.

 

[Another Reader]

Wells Fargo and JPM just hit 3% CD offerings 1yr.

Wells is call protected, Chase is not.

 

[almost there]

All the ones I listed at Schwab are.

 

[2HOTinPHX]

Wells Fargo and JPM just hit 3% CD offerings 1yr.

Where are you seeing those rates? I don't see them on bankrate.com?

 

[disneysteve]

Where are you seeing those rates? I don't see them on bankrate.com?

I'm seeing a 3% brokered 12 month CD from Wells Fargo on Vanguard.

 

[jazz4cash]

Where are you seeing those rates? I don't see them on bankrate.com?

Glancing at bankrate.com and I just realized they don’t seem to show any brokered CDs. At the present time the brokered CDs have the best rates.

 

[audreyh1]

Where are you seeing those rates? I don't see them on bankrate.com?

Bankrate only shows CDs sold directly from banks. They don’t show the bank CDs offered through brokerages which sometimes (often?) have better rates.

 

[NomDeER]

Bankrate only shows CDs sold directly from banks. They don’t show the bank CDs offered through brokerages which sometimes (often?) have better rates.

I don't have experience with brokered CDs. Are there risks or drawbacks from buying brokered CDs from someplace like Vanguard? I'm trying in understand why the brokered CD interest rates are better than the interest rates from the bank CDs.

 

[almost there]

I have not found any risks or drawbacks at all. I just make sure they are non callable,
and insured by the FDIC. Seems 99.9% of new issue are non callable.
And all new issue CD's I have seen at Schwab are insured by the FDIC. (its easy to check)
Most are bank CD's, just sold through a brokerage. But at better rates than offered directly through the bank?
Its super easy, just pick the one you want and click. Its done.
But interest isn't compounded. It goes directly into an IRA cash account.
Or cash account for non IRA accounts. I have all 3 types. IRA, ROTH, and cash/sav brokered CD's.
Most pay twice a year, some monthly and some annually.
And that works for me as I plan to start taking the interest soon.
Selling early is not the same as it gets listed on the market. And bid on.
And you get an offer you can either accept or reject.
The only one I ended early, I actually made a small amount on.
As new issue CD rates were lower than the one I wanted to sell.
But it goes both ways..
I listed Schwab's screen shot above up a few posts. They seem to follow interest rates faster, both to the upside and the downside. .
I am going to start taking IRA distributions Jan 2024 at 62..
I just set up an IRA / 5 yr cd ladder at Schwab last month. 3.25% average. Got a 3.5% 5yr, 3.4% 3 yr and 4yr. last month.
Today its 3.4% on the 5 yr. But expect it to go higher after the next rate hike.
Plan to take all the interest, and what ever else I want every year from the one that comes due.
Then put the balance into a new 5 yr. Went that route for simplicity. Also made a 30k and a 60k CD.
For Roth conversions. The 30k I converted last week. The 60k is for 2023.
Still have some 3.4 and 3.5% Roth CDs and Cash cds at Navy and PenFed.
Will see where they are at when due in 2023 & 2024. And go from there.
But have had both Credit union, Bank and Brokered CD's for quite a while.
Never had a problem with any. I just go with the best rates I can find. So far its been great.
As I am no longer swinging for the fence. Past 5 yrs returned 3.5%.
Am thinking it will be about the same for the next 5 yrs. Good enough for me.

 

[jazz4cash]

I don't have experience with brokered CDs. Are there risks or drawbacks from buying brokered CDs from someplace like Vanguard? I'm trying in understand why the brokered CD interest rates are better than the interest rates from the bank CDs.

Here’s a list of pros and cons of brokered vs. direct CDs. My interpretation is that a broker is buying a huge amount of CDs from an FDIC bank and reselling them at retail which may reduce some admin cost for the issuer. The big difference is what happens if you must sell before maturity. Unlike a direct CD which has an early penalty for early withdrawal, a brokered CD must be sold in the secondary market. Like a bond, the value could be higher or lower depending on the coupon vs prevailing interest rates.

https://www.bankrate.com/banking/cds/what-are-brokered-cds/

 

[Car-Guy]

I guess my post in this thread would be more about "special deals" from a bank (or financial institution). My 401k has an investment category called common assets that has been paying a little better than long term CD's, "seemingly forever". That's been okay since I keep my "won the game" money there. However, with this out of control inflation, I have been reconsidering if that's wise, but then "what would I do with the funds".

Anyway, the first quarter interest payment earlier this year was almost 6% on an annualized basis. Then 2nd quarter interest was just posted a few days ago and I was surprised to see it is now returning almost 7% on an annualized basis. That is still not keeping up with inflation but it's performing a lot better than the market. Not sure exactly sure how they are doing this but I guess I'll just sit on it for now. Matter of fact, now I wish I could add to it.

 

[ShokWaveRider]

Here are the latest MYGA rates from Blueprint. 5year up to 4.5%. I am waiting till the end of the month to get more. I am hoping for 5%.

https://www.blueprintincome.com/

 

[audreyh1]

I don't have experience with brokered CDs. Are there risks or drawbacks from buying brokered CDs from someplace like Vanguard? I'm trying in understand why the brokered CD interest rates are better than the interest rates from the bank CDs.

The only thing is that there is not an early withdrawal option. It really is a bank CD sold through a broker.

Better rates are because the broker is getting large amounts to sell. So they are getting wholesale prices and the bank does have to deal directly with retail customers.

Oh right, I forgot about paid interest not compounding in the CD.

 

[jazz4cash]

The only thing is that there is not an early withdrawal option. It really is a bank CD sold through a broker.
…
Oh right, I forgot about paid interest not compounding in the CD.

But you can sell early in the secondary market like a bond, right?

Good point about lack of compounding. I keep forgetting about that detail too, but that is also similar to a bond.

 

[audreyh1]

But you can sell early in the secondary market like a bond, right?

Good point about lack of compounding. I keep forgetting about that detail too, but that is also similar to a bond.

Yes, there is a secondary market for CDs at your brokerage.

Who knows how liquid it is, must not be nearly as liquid as the secondary US Treasury market.