Best CD, MM Rates & Bank Special Deals Thread 2023 - Please post updates here

[Spock]

Still seems highly probable to me that 1 to 2 yr CD's rates will be going up a bit more in the next 4 to 6 weeks. I expect Powell will raise rates .5% later this month so that should push CD's to 5.5% by mid April. YMMV

I'm planning to be re-buying by then.

I don't know if it's overblown or not... but there are opinions that the Fed painted themselves into a corner based on the last 1/4point rise. To turn around and do 1/2point now would be both a shock to the market that thinks the slope of raises has tipped over and a credibility issue ("shoulda raised 1/2point last time").

Now maybe the fed wants a little shock into the system to show they're serious given that some charts that show parts of the market are betting on the 1/2point anyway.

They're nearing the end of the increase cycle so things can get a little choppy.

 

[imbatman]

We live in a state where we currently pay 5.15% on our taxable income. That gives Treasuries a distinct advantage. CDs and agencies would have to pay at least 0.25% higher (sometimes more) to keep me from favoring treasuries in our taxable accounts.

Perhaps your state is different, but I believe the vast majority of Agency bonds that my brokers sell are state / local tax exempt. So for me (similar high state/local tax rate like you), these are really attractive because they are paying noticeably higher than treasuries and the bump on state/ local tax exemption.

https://www.raymondjames.com/wealth...vernment-sponsored-enterprise-debt-securities

 

[pb4uski]

I don't know if it's overblown or not... but there are opinions that the Fed painted themselves into a corner based on the last 1/4point rise. To turn around and do 1/2point now would be both a shock to the market that thinks the slope of raises has tipped over and a credibility issue ("shoulda raised 1/2point last time").

Now maybe the fed wants a little shock into the system to show they're serious given that some charts that show parts of the market are betting on the 1/2point anyway.

They're nearing the end of the increase cycle so things can get a little choppy.

The Fed should just ignore the market and do what they think is best.

 

[jldavid47]

Perhaps your state is different, but I believe the vast majority of Agency bonds that my brokers sell are state / local tax exempt. So for me (similar high state/local tax rate like you), these are really attractive because they are paying noticeably higher than treasuries and the bump on state/ local tax exemption.

https://www.raymondjames.com/wealth...vernment-sponsored-enterprise-debt-securities

Thanks for the link. It looks like FHLB and FFCB (those that are usually available thru Schwab) are exempt from state taxes while the mortgage-based agencies are not. When I lengthen my duration in our taxable account I'll need to consider those.

 

[pb4uski]

Perhaps your state is different, but I believe the vast majority of Agency bonds that my brokers sell are state / local tax exempt. So for me (similar high state/local tax rate like you), these are really attractive because they are paying noticeably higher than treasuries and the bump on state/ local tax exemption.

https://www.raymondjames.com/wealth...vernment-sponsored-enterprise-debt-securities

From the link:

Taxation

Interest income and capital gains/losses from most GSE securities are subject to federal income tax. Interest income paid by several GSEs is exempt from state and local taxes: FHLB, FFCB, TVA, FICO, and REFCORP. FNMA, FHLMC, and GNMA are subject to state and local taxes. Investors should consult with a tax professional to ensure proper tax reporting.

 

[erkevin]

Wells Fargo 2-year CD @ 5.25%. ID# 949764AF1. On my Schwab CD page it lists this CD as "no cash call identified". I haven't seen that call descriptor before, so maybe check that out before you commit.

 

[11522914]

Still seems highly probable to me that 1 to 2 yr CD's rates will be going up a bit more in the next 4 to 6 weeks. I expect Powell will raise rates .5% later this month so that should push CD's to 5.5% by mid April. YMMV

I'm planning to be re-buying by then.

I agree we still have some CD rate increases down the road. Whether it starts to affect 10 year Treasuries remains to be seen. February's inflation will be interesting to say the least. If it's bad watch out, if not the pivot crowd will be back again

Sitting on the sidelines earning 4.47% is just fine with me at this point. I nibble occasionally, like those 10 year 5.2% Royal Bank of Canada with 5 year call protection.

 

[Car-Guy]

To turn around and do 1/2point now would be both a shock to the market that thinks the slope of raises has tipped over and a credibility issue ("shoulda raised 1/2point last time").

To me, the Fed would "regain" some credibility it they raised rates by a 1/2 point this time. Seems justified to me but it could just be wishful thinking.

Now maybe the fed wants a little shock into the system to show they're serious given that some charts that show parts of the market are betting on the 1/2point anyway.

"I don't think they want to" shock the system, they are just following their stated path to get inflation down to 2% and it's not happening yet.

They're nearing the end of the increase cycle so things can get a little choppy.

Yep, probably true

The Fed should just ignore the market and do what they think is best.

Agree.

 

[camfused]

I read there are a couple of small local banks that have 6% CDs now. Maybe after the Fed’s next bump, we might see more.

 

[Car-Guy]

^^^
What term? Callable? FDIC protection?

 

[Montecfo]

Trouble is, the Fed has moved the rates so high so quickly (fastest ever), I do not think they are giving the stew enough time to simmer. Depending on who you talk to, it takes 6-18 months for Fed actions to trickle through the economy.

They have raised 225 basis points in past six months and 450 basis points in the past 12 months.

25 bp is probably right in my view, based on what is now known.

But of course we will have quite a bit of data between now and March 21.

Powell is right to keep jawboning though.

Not sure how this surprised the market.

 

[camfused]

^^^
What term? Callable? FDIC protection?

Source: https://www.marketwatch.com/picks/t...-pay-6-should-you-bite-e25d2a32?mod=home-page

 

[Car-Guy]

Yep, the devil is in the detail. Some of these are for new accounts only. Some are limited to 50k max. I didn't notice if they were callable or not but that too should be checked. But, my guess is in the next few months, we will be seeing 5.5 and maybe even 6% cd's everywhere with 1 to 2yr terms without any such catches.

 

[Graybeard]

The Vanguard Federal Money Market Fund seems to be stuck at 4.51% despite T bill rates going up over the past week+. VMFXX rose fast as rates rose but it isn't budging lately. Any opinions on why?

 

[Dtail]

The Vanguard Federal Money Market Fund seems to be stuck at 4.51% despite T bill rates going up over the past week+. VMFXX rose fast as rates rose but it isn't budging lately. Any opinions on why?

The Fidelity top yielding mm fund is at 4.45%, which is actually down from a high of 4.47% IIRC.
Perhaps they are all taking a pause to see who goes higher first.

 

[audreyh1]

Gosh, patience folks. It all depends on which short-term securities they can buy. MM funds don’t set their rate like banks do.

Anyway, with more Fed rate rises in the pipeline it’s just a matter of time. In the meantime, if you want to do better buy 4-week treasuries instead which are only slightly less liquid.

 

[jldavid47]

The Fidelity top yielding mm fund is at 4.45%, which is actually down from a high of 4.47% IIRC.
Perhaps they are all taking a pause to see who goes higher first.

Money market rates are dependent on the income received from the underlying assets and the underlying expenses. Period. SWVXX is paying 4.48% had has been sitting at 4.47%-4.48% since a week after the last Fed rate hike. Don't expect another rise until the next Fed hike because the return on many of their assets follows that.

 

[pb4uski]

The Vanguard Federal Money Market Fund seems to be stuck at 4.51% despite T bill rates going up over the past week+. VMFXX rose fast as rates rose but it isn't budging lately. Any opinions on why?

Step back a year and that is a bit of a funny post... unhappy that one's money market fund is stuck at 4.5%. [emoji16]

 

[imbatman]

New CD (DSN371986) - Fidelity has 5.4% 03/17/2023 settlement (Callable starting 03/17/2024, 1 Year) 10-Year Celtic Bank

New CD (CCDCHN2) - ML has 5.5% (Callable starting 06/17/2023, 3 Months) 2-Year JPM

 

[Car-Guy]

Gosh, patience folks. It all depends on which short-term securities they can buy. MM funds don’t set their rate like banks do.

Anyway, with more Fed rate rises in the pipeline it’s just a matter of time. In the meantime, if you want to do better buy 4-week treasuries instead which are only slightly less liquid.

It's easy to be patient when you can put your money in MM's that pay "almost" as much as the CD's you are waiting to buy and they are very liquid.

There has been a "war on savers" (w/fixed income) so long, all this seems almost to good to be true. Still lagging behind inflation but..........

 

[njhowie]

New CD (DSN371986) - Fidelity has 5.4% 03/17/2023 settlement (Callable starting 03/17/2024, 1 Year) 10-Year Celtic Bank

New CD (CCDCHN2) - ML has 5.5% (Callable starting 06/17/2023, 3 Months) 2-Year JPM

Fidelity DSN370219 JPM 1 year 5.4% callable 6/17/2023

 

[Car-Guy]

Interesting to see the inverted CD yield curve "seems" to be flattening out a little more (maybe). I guess that means the big banks think rates will stay high for a longer period of time than they thought just a few months ago. Less than 1/2 point between 1 and 5 yr CD's at this time and non callable.

 

[Born2Fish]

2 year non-callable CD, Fidelity, CUSIP: DSN376133

WELLS FARGO BANK NATL ASSN CD 5.25000% 03/17/2025

 

[Golden sunsets]

The 3-5 year non callable CD's are inching up. On Fido, non callables in the new issue group are 4.95% for the 3 year, 4.85% for the 4 year and 4.8% for the 5 year. Just yesterday the highest 5 year noncallable was 4.6%. I imagine that Powell's speech yesterday triggered increases.

 

[jldavid47]

There has been a "war on savers" (w/fixed income) so long, all this seems almost to good to be true. Still lagging behind inflation but..........

Yes, the war on savers is over (or so it seems).

My assets do not have to keep up with inflation. My income does. Our income last year rose several multiples of the inflation rate even at 2-4% interest rates even if our asset growth was flat. This year income growth will be even better (on a nominal basis) given 4-5% interest at a minimum.