2.0% 5-year CD - Can I do better?

[marks]

I am looking to put about $100,000 into a CD. I have found the following deal at State Farm Bank:

Term: 5-Year
Interest Rate: 1.98%
APY: 2.0%
Early withdrawal penalty: 180 days

I also see that PenFed has a 2.02% rate, but the early withdrawal penalty is 365 days.

Does anyone know of a better deal?

Thanks very much,
Mark

 

[Ready]

That looks like a pretty good deal. The only other option might be Ally Bank, which would pay 1.5% but would only hit you with a 60 day penalty for early withdrawal, so if you think rates are likely to go up in the next year or so, you would have very little penalty for pulling it out early. At a 180 day penalty you might be inclined to leave it in even if rates go up. But if you're comfortable locking it in for five years, that looks like a very competitive rate.

 

[Tandemlovers]

info seeker posted this recently:

If you are a Navy Federal Credit Union member.....and have been llooking for a good rate on a 12 month CD they have a special offer going on right now. ( $50-$3000 CD, 3% APY) Only downside for you might be that you have to have a checking account and direct deposit with them. Just thought I'd pass along this info, as I only see it advertised at their website.

 

[Meadbh]

I bought a 5 year non redeemable GIC last week for 3%. However, since this was from Scotiabank in Canada, it won't help you.

 

[2B]

I'm getting 1% on 2 yr brokered CDs. There's no early redemption option not involving my death so if rates go up I have to hold until maturity or sell.

 

[nun]

I bought a 5 year non redeemable GIC last week for 3%. However, since this was from Scotiabank in Canada, it won't help you.

In a similar vein you can get 3% 5 year savings bonds in the UK.

Top 10 Five Year Fixed Rate Bonds UK - Best 5 Yr Savings Bond

 

[mystang52]

Sorry for deflecting this thread's direction, but just curious: can a non-citizen buy CD's or another country's savings bonds?

 

[nun]

Sorry for deflecting this thread's direction, but just curious: can a non-citizen buy CD's or another country's savings bonds?

I think it would be better to ask if a non-resident can buy them rather than a non citizen and I think the answer is basically no unless they are specifically set up for cross border selling....like the Iceland banks were......

 

[sailor]

Sorry for deflecting this thread's direction, but just curious: can a non-citizen buy CD's or another country's savings bonds?

All depends on country.
But easier to buy a fund which invests in such things, like GIM (which is my major global bond holding)

 

[Henry Lili]

2% seems to be right in line with what I've found as well.




State Bank of India
Rates as of Oct. 9th



5 year
2.10%$5,0005 years and above
EverBank
Rates as of Oct. 9th5 year1.99%2.01%$1,500Yield Pledge CDBarclays
Rates as of Oct. 9th5 year1.98%2.00%$060 Month Online CDState Farm Bank (Rate in NY)
Rates as of Oct. 9th5 year1.98%2.00%$50060 Month CD - Less than $100,000 - Rate collected within: 10025 (NY)

 

[OAG]

Bought 2.5% for 6 years a couple of weeks ago (now 2.4% - changes are posted on Thursday's) at Wright-Patt CU NCUA insured. Pentagon FCU has 5 and 7 years at 2.02% currently. Vanguard had some 3.25% 10 year FDIC insured non-callable CD's too.

 

[Alan]

Sorry for deflecting this thread's direction, but just curious: can a non-citizen buy CD's or another country's savings bonds?

I've looked at these in the past and always found that you have to be a permanent resident.

I had a quick look at nun's link and the CD he mentioned requires you to be a UK resident. (see screen shot attached)

 

[Meadbh]

Apparently you don't have to be a permanent resident to buy them in Canada, but there will be tax withholding unless it's a 5 year non redeemable GIC.

Fiscal Agents - Ask An Expert - Guaranteed Investment Certificates

However, the rate that I got last week was a promotion, which has now ended.

The other issue is currency exchange risk.