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

[copyright1997reloaded]

Not with an inverted yield curve I think.

It is more difficult with an inverted yield curve because typically banks lend (assets) longer than their deposits (liabilities). Thus, an inverted yield hurts ... especially when what they have to pay on those short duration deposits goes up dramatically in a year!

(Banks also make spread for a given time frame, i.e. they should borrow (e.g. CDs) at a rate lower than what they loan it for. For example, they would pay less for a 5-year CD than what they get on a 5-year auto loan.

 

[MarieIG]

This just in from the Associate Press:

Early Retirement website participants corner market on 5+% CDs. FBI looking at illegal conspiracy, racketeering, and violations of RICO statutes. [emoji32]

Just joined the gang tonight over at Vanguard . . .

 

[RetiredAndLovingIt]

Wow! I pull money using my Citbank account, it seems to take at least a day to get there, and then they put a hold on whatever I pull for 5 business days before I can do anything with it. Would be helpful to know if Fidelity puts a hold on that $ or not - let us know when you find out please.

So I had Fidelity pull money today from my credit union at 6.38PM and at 7.35PM it showed in my Fidelity Total account value. It shows as pending in my activity screen with a completion date of tomorrow. Just to test it, I went through the process to buy a CD and it took me all the way without warning me that the funds were on hold or not available yet. I cancelled out at the last screen since I want to see what's available in the morning.
So it looks like I can start buying immediately, probably since the CD's usually don't process for a couple of days.

 

[oiseux]

I feel like I've been battling the forum in the brokered CD market, chasing after the last available prizes. I was bummed that I bought so many about a month ago, when I started setting up a new ladder.

 

[simple girl]

So I had Fidelity pull money today from my credit union at 6.38PM and at 7.35PM it showed in my Fidelity Total account value. It shows as pending in my activity screen with a completion date of tomorrow. Just to test it, I went through the process to buy a CD and it took me all the way without warning me that the funds were on hold or not available yet. I cancelled out at the last screen since I want to see what's available in the morning.
So it looks like I can start buying immediately, probably since the CD's usually don't process for a couple of days.

Great to know - wow, that's fast! Thank you!

 

[jldavid47]

Some of us are are trying to help those mid size banks with their liquidity issues. It's called investment altruism.

I helped out Customers Bank PA (5.4% for 1 year) and Flagstar Bank MI (5.25% for 2 years) this morning. However, I don't think there was any altruism involved.

Both of these banks have a Weiss safely rating of B and the CDs are FDIC insured so I'm not worried. Yet.

 

[jldavid47]

I feel like I've been battling the forum in the brokered CD market, chasing after the last available prizes. I was bummed that I bought so many about a month ago, when I started setting up a new ladder.

Don't kick yourself. You cannot time rates exactly.

 

[MarieIG]

I feel like I've been battling the forum in the brokered CD market, chasing after the last available prizes. I was bummed that I bought so many about a month ago, when I started setting up a new ladder.

The majority of us simply are not going to get the "perfect" rates; but they are much better than a year ago. I try not to torture myself about missing a quarter of a point here and there.

 

[Car-Guy]

I feel like I've been battling the forum in the brokered CD market, chasing after the last available prizes. I was bummed that I bought so many about a month ago, when I started setting up a new ladder.

The shorter term CD's I bought 6 to 8 months ago will be maturing by the end of this month... Even more will be maturing over the next few months. So I hope the FED raises rates a couple of more times so I can re-buy at higher rates. OTOH, I hope we've seen peak inflation so they can take a pause in rate increases "by late summer" and start lowering rates later this year. (After I re-buy new and longer term CD's at higher rates.) Market timing, greed. Yep!

 

[copyright1997reloaded]

The majority of us simply are not going to get the "perfect" rates; but they are much better than a year ago. I try not to torture myself about missing a quarter of a point here and there.

Exactly. All I know (based on my spreadsheet) is how much my expected cash flow has increased over the last six to nine months. My average YTM is now 4.71% on a very safe Treasury MM, FDIC bank/CD, T-Bills and only a very small amount in corporate notes.

 

[disneysteve]

The majority of us simply are not going to get the "perfect" rates; but they are much better than a year ago. I try not to torture myself about missing a quarter of a point here and there.

Exactly.

“Never let the perfect be the enemy of the good” - Voltaire

 

[Freedom56]

Non-callable CD picture today at Fidelity. 4 and 5 year 5% non-callable CDs are sold out. 1-3 years are still available at yields over 5%.

 

[Chuckanut]

I feel like I've been battling the forum in the brokered CD market, chasing after the last available prizes. I was bummed that I bought so many about a month ago, when I started setting up a new ladder.

Relax. I used to say I made more on credit card cash back and bonus programs than I did on interest from my savings. Today that is no longer true. That’s good. We make the best decision we can at that time. Until I get my Time Machine fixed that’s about as good as it gets.

 

[dmpi]

The way I look at it you almost can't screw up buying CDs. You may not get the best rates but every 'mistake' times out at maturity and you get to try again. Also you always get what you signed up for. If it beats the money market I'm ahead.

 

[njhowie]

The majority of us simply are not going to get the "perfect" rates; but they are much better than a year ago. I try not to torture myself about missing a quarter of a point here and there.

Exactly!

When rates were down around 0.5%, sure, the 0.05% or 0.1% made a huge difference. Now, with all rates solidly above 4%, there is little reason to fight to get that last 0.1% or 0.25%.

 

[Gotadimple]

American Express Bank announces a rate increase on it's high yield savings to 3.75% (from 3.50%) effective 3/16. Looking at CD rates, their sweet spot for CDs is 12 months at 4.50%.

At the end of 2022, they had $200B on deposit, so raising rates is more about competition than the spread between savings and loans.

- Rita

 

[Car-Guy]

^^^^
Interesting, Schwab is offering 1yr American Express brokered CD's for 5.35%.

 

[Dtail]

Exactly!

When rates were down around 0.5%, sure, the 0.05% or 0.1% made a huge difference. Now, with all rates solidly above 4%, there is little reason to fight to get that last 0.1% or 0.25%.

Yup, almost like it is an implicit contest among some posters. I locked in a 5 yr CD for my mom at 4.80%. Not fretting over missing 5%.
Will not subject myself to checking out rates all day along.

 

[audreyh1]

Exactly!

When rates were down around 0.5%, sure, the 0.05% or 0.1% made a huge difference. Now, with all rates solidly above 4%, there is little reason to fight to get that last 0.1% or 0.25%.

Yup, almost like it is an implicit contest among some posters. I locked in a 5 yr CD for my mom at 4.80%. Not fretting over missing 5%.
Will not subject myself to checking out rates all day along.

Agreed. I don’t sweat it. I try to spend very little time on it and mostly manage via ladders.

 

[ShokWaveRider]

I do check depositaccounts.com to check the rating of a bank before I buy a CD from them though. I stick to A Rated banks.

 

[Car-Guy]

Agreed. I don’t sweat it. I try to spend very little time on it and mostly manage via ladders.

I don't sweat it either but I don't mind spending a few minutes a couple of times a month to keep up and to get the best rates I can when I'm ready to replace a step on my ladder... (And that's all it takes these days) I spend more time looking at rates to help folks out here than I do for myself... Several PM's from folks thanking me for my occasional posts on better rates but YMMV. And it's true enough, ~.1 difference ain't much per year, even for a 1m in CD's. But YMMV

 

[jldavid47]

I do check depositaccounts.com to check the rating of a bank before I buy a CD from them though. I stick to A Rated banks.

Another choice is Weiss Ratings:

https://weissratings.com/en/search?o=total-assets-safety+desc&p=1&q=type(bank)

 

[ShokWaveRider]

Another choice is Weiss Ratings:

https://weissratings.com/en/search?o=total-assets-safety+desc&p=1&q=type(bank)

Thanks, how come they show banks ratings far lower than deposit accounts.com?

 

[jldavid47]

Thanks, how come they show banks ratings far lower than deposit accounts.com?

I believe Weiss' standards are more stringent. If they rank a bank an A it's safe. I'm comfortable going with B rated banks from Weiss. If the SHTF then who knows what's really safe.

 

[NomDeER]

I believe Weiss' standards are more stringent. If they rank a bank an A it's safe. I'm comfortable going with B rated banks from Weiss. If the SHTF then who knows what's really safe.

I do check depositaccounts.com to check the rating of a bank before I buy a CD from them though. I stick to A Rated banks.

I'm not willing to spend a lot of effort figuring out the relative health of banks when the CDs are being offered by brokerages and are FDIC insured. For FDIC insured banks, I'm confident that I'll get my money. (And, the benefit of a brokerage is that they take care of it for you if there is a problem. Vanguard has an alert on its bond screen informing people that Vanguard is currently working with the FDIC to get the funds for anybody who bought SVB CDs.)

People are joking about being altruistic by buying the highest yield CDs, but I really do think it's good to be buying from the banks that are not the biggest banks, which is the case for some of the higher yielding CDs. They need the deposits. Selling CDs is part of their business model and will help them maintain the assets they need to stay afloat. Panic or paranoia is the worst thing for these banks (and for the borrowers, depositors, and holders of bank bonds and equities and the bonds and equities of business using these regional banks).