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

[Free To Canoe]

PSECU is offering a 20 month promotional CD at 3.00%.

 

[disneysteve]

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?

 

[tominboise]

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. My credit union (BECU) has laughable CD rates, so I am parking our cash in brokered CD's in our VG account.

 

[COcheesehead]

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 agree. I realized the power of consolidation awhile ago.

 

[Car-Guy]

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.

 

[11522914]

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.

+100

Same here. Consolidated everything into one brokerage account. Soooo much easier and appears to be quite competitive with current rates.

 

[MarieIG]

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?

- My local bank has low cost safety deposit boxes as a perk for a no cost checking account.

- Vanguard has good interest on its sweep - so that if I submit the good to cancelled limit orders, which may or may not execute, the cash is earning money that it may not get at Schwab.

- TD/ Schwab has a better estate department than Vanguard, as was superior at figuring out cost basis. Also they have a local branch, better customer service, and are somewhat superior to Vanguard in getting funds transferred to them (in one of my attempts to consolidate); I do not like not getting an estimate of the cost of bonds.

- Inertia - I still have some joint accounts with two DSs, at a local bank.

- FDIC limits - I have snagged some brokered CDs; but tend to want access to cash in taxable for trading and paying taxes (i.e. think Roth conversions). With CDs outside of the brokerage, I do pay less attention to them.

- I just opened up a tiny Fidelity account (recommended on this board) so that I could use their bond research tool. I will play with the account for a while to determine whether I like it. I also noted, when reading a thread on paying taxes for Roth conversions, that Fidelity had a special deposition slip if one wanted to pay taxes directly out of a traditional IRA; and then do a non-custodial "transfer" w/n 60 days . . .

The brokerage accounts don't withhold taxes; however some of the transfer agents holding individual stocks which pay dividends will . . .

Now hopefully Midpack is not in the mood to post another poll on the number of accounts . . .

 

[Dash man]

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!

 

[MarieIG]

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.

 

[aja8888]

Oh no. You are tempting me. I feel as if I have become a money manager since my retirement.

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.

 

[Chuckanut]

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.

I used to be a member of BECU many years ago. Today, IMO, the difference between BECU and the four big major banks is very small.

12-17 Month CD with Member Advantage
0.75%

Another account advertises 2.02% in big print. The small print says on the first $500.
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
I'm too old for this nonsense.

 

[RetiredAndLovingIt]

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.

 

[Spock]

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.

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.

 

[COcheesehead]

That’s the way bonds work. They pay interest every six months in cash and at maturity they return to the original value, or par. The exception being zero coupon bonds. Which are discounted and rise to par without paying a coupon.

 

[MarieIG]

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.

Yes. The more I learn, the more I realize how much I don't know.

 

[RetiredAndLovingIt]

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.

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.

I was actually responding to Disneysteves question but I forgot to check the quote message. Originally Posted by disneysteve
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?

 

[Dtail]

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.

Plus it can be part of one's tax management each year with any mix of CD's/MYGA's.

 

[aja8888]

Yes. The more I learn, the more I realize how much I don't know.

Hang around here and keep managing your money and you will be surprised how fast you will be very knowledgeable. At that point, you will come to the realization that FA's really aren't so smart after all.

 

[captain3d]

Citizens Access going to 2.1%

 

[audreyh1]

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.

 

[COcheesehead]

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.

If you open a cash management account, the cash is held in a FDIC insured account and you have access to FDIC insured CDs.

 

[audreyh1]

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.

 

[COcheesehead]

That is not a high yield savings account. Yields are miserable.

Check out a MM, FZDXX, yield is 2.2%

 

[audreyh1]

Check out a MM, FZDXX, yield is 2.2%

That is a money market mutual fund, not an FDIC insured high yield savings account.

The FDIC cash account portion of the Fidelity Cash Management account is lower yield, currently 1.2%.

 

[Earl E Retyre]

Ally no penalty 2%

Not sure if anyone posted this yet but Ally bank no penalty CD is now at 2%