Free To Canoe
Thinks s/he gets paid by the post
PSECU is offering a 20 month promotional CD at 3.00%.
I keep seeing posts about rates at specific banks and credit unions and they’re almost all below what Treasuries and brokered CDs are paying. Isn’t it much simpler to keep all of your money in one place (Vanguard, Fidelity, Schwab) and get great rates and convenience? Why deal with multiple institutions if you don’t need to and if their rates aren’t even better?
I keep seeing posts about rates at specific banks and credit unions and they’re almost all below what Treasuries and brokered CDs are paying. Isn’t it much simpler to keep all of your money in one place (Vanguard, Fidelity, Schwab) and get great rates and convenience? Why deal with multiple institutions if you don’t need to and if their rates aren’t even better?
That's what I've been doing with my CD's. 5+ Years ago I had CD's at ~5 different banks... Paperwork, mail, websites, contacts, etc out the wazoo. Now everything is through Schwab. One website, no paperwork, real time updates and rates "appear" to be very close to the actual issuing banks. A few clicks and I'm done.I keep seeing posts about rates at specific banks and credit unions and they’re almost all below what Treasuries and brokered CDs are paying. Isn’t it much simpler to keep all of your money in one place (Vanguard, Fidelity, Schwab) and get great rates and convenience? Why deal with multiple institutions if you don’t need to and if their rates aren’t even better?
+100That's what I've been doing with my CD's. 5+ Years ago I had CD's at ~5 different banks... Paperwork, mail, websites, contacts, etc out the wazoo. Now everything is through Schwab. One website, no paperwork, real time updates and rates "appear" to be very close to the actual issuing banks. A few clicks and I'm done.
I keep seeing posts about rates at specific banks and credit unions and they’re almost all below what Treasuries and brokered CDs are paying. Isn’t it much simpler to keep all of your money in one place (Vanguard, Fidelity, Schwab) and get great rates and convenience? Why deal with multiple institutions if you don’t need to and if their rates aren’t even better?
I snagged a deal with Citizens Bank to get $600 for opening a checking account with one direct deposit for $500 and a savings account with $5,000 in it through the end of November. I know I won’t stick with them because they only pay 0.01% interest and their website is terrible. But it’s an easy $600!
Oh no. You are tempting me. I feel as if I have become a money manager since my retirement.
That's what I've been doing. My credit union (BECU) has laughable CD rates, so I am parking our cash in brokered CD's in our VG account.
Another account advertises 2.02% in big print. The small print says on the first $500.12-17 Month CD with Member Advantage
0.75%
To the best of my knowledge brokered CD's do not compound interest which may not be a big deal on short term CD's but is on longer terms.
Real life example of one of my CD's
$200,000 4.2% for 5 years $45679.31 at a credit union.
$200,000 4.2% for 5 years $42,000 simple interest at a brokerage
Having said that I've also opened a Fidelity account to possibly buy some shorter term CD's.
Well, that's not a bad thing as someone has to manage your money!
In a sense, most of us here are doing the same.
Got it, in my case I don't need access to the money for the five years so the credit union is the better deal for my situation. I'm still learning about brokered CD's and it's good to know this an option for my living expenses.Non-compounding CDs allow one to invest (tie-up) more in the CD because they throw off cash in real time to live on vs. having to wait to maturity.
In your example, if the CD compounded, I would have to keep 42K back in cash and only be able to invest 158K and only end up with 36K in compound interest.
Non-compounding CDs allow one to invest (tie-up) more in the CD because they throw off cash in real time to live on vs. having to wait to maturity.
In your example, if the CD compounded, I would have to keep 42K back in cash and only be able to invest 158K and only end up with 36K in compound interest.
Yes. The more I learn, the more I realize how much I don't know.
I keep seeing posts about rates at specific banks and credit unions and they’re almost all below what Treasuries and brokered CDs are paying. Isn’t it much simpler to keep all of your money in one place (Vanguard, Fidelity, Schwab) and get great rates and convenience? Why deal with multiple institutions if you don’t need to and if their rates aren’t even better?
Fidelity doesn’t offer the convenience of FDIC insured high yield savings accounts, so I have relationships with a few banks anyway, and when they have attractive CDs I take advantage. But otherwise I have no trouble buying brokered CDs through Fidelity.
That is not a high yield savings account. Yields are miserable.If you open a cash management account, the cash is held in a FDIC insured account and you have access to FDIC insured CDs.
That is not a high yield savings account. Yields are miserable.
Check out a MM, FZDXX, yield is 2.2%