5 year CD with 3.15% rate?

[brewer12345]

Anyone see anything higher? This is the offer I am getting from northwest federal credit union. Early withdrawal penalty is a year of interest.

 

[JoeWras]

Coastal Federal Credit Union (NC) has a 39 mo. at %3.00. Same 12 month interest penalty.

The shorter term may make it slightly more advantageous.

 

[erkevin]

I have seen brokered CDs at 3.3%, but the cost had a premium (in the neighborhood of $1025 for a $1000 bond)

 

[Dtail]

Fidelity has a new issue call protected brokered 5 yr CD at 3.05%.

 

[powerplay]

I'll be very interested toward the end of the year when my PenFed CD's mature. It's good to follow where the rates are going.

 

[nwsteve]

Without stretching to 5 years you get 2.0% 6 mo treasury zeros in current offering--funds April 26, 5 yr Zero at 2.74, settles 4/30. At Fido, no cost to buy, $1/bond to sell and no lost of interest.

 

[njhowie]

Yesterday I purchased 3 year 5 month (9/28/2021) @ 3.11%.

 

[njhowie]

Might we be approaching peak rates for this cycle?

Treasury yields have been hammered over the past 2 days. 1-year (and shorter) treasury yields had been running ahead of equivalent maturity CDs. Yesterday, the 1-year was at 2.30%, same as 1-year CDs.

Federal Reserve meeting minutes from Wednesday had some of the talking heads commenting that they were surprised with what seemed to suggest that we may get the 2 or 3 more rate hikes this year, but that might be the end of it. I may nibble on some 3.25% 5-years next week, just to have in my portfolio, in case we are approaching the peak.

I certainly hope we aren't near the peak, but want to be sure I have some longer-term money taking advantage of whatever the peak rates turn out to be.

Beyond 5 years, forget it - rate differential still doesn't justify it.

 

[Another Reader]

If you live in Arizona, Pinnacle Bank is offering 3.25 percent for five years. Looks like I can arbitrage my 30 year, 3.125 percent mortgage with CD's soon...

 

[Chuckanut]

Given that inflation is a bit over 2% so far, I don't see how see can be near a peak in the longer term CDs. Well, I certainly hope not. But, so far the War on Savers is still a losing battle for many of us.

 

[Freedom56]

I still say we are headed for a rate inversion. We are moving closer and closer to it now.

 

[Dtail]

I still say we are headed for a rate inversion. We are moving closer and closer to it now.

Isn't the 2/10 year spread around the same now as the beginning of the year(~50bps)?

 

[njhowie]

Isn't the 2/10 year spread around the same now as the beginning of the year(~50bps)?

Personally, I'm more interested in the 5/10/30 year spreads and they are pathetic.

 

[njhowie]

Given that inflation is a bit over 2% so far, I don't see how see can be near a peak in the longer term CDs. Well, I certainly hope not. But, so far the War on Savers is still a losing battle for many of us.

Treasury yields are cratering today.

 

[Dtail]

Treasury yields are cratering today.

So are we going to hit the inversion 2/10 yr level soon?

 

[GoGolfing]

So are we going to hit the inversion 2/10 yr level soon?

It is closing - you can graph it here: https://www.quandl.com/data/USTREASURY/YIELD-Treasury-Yield-Curve-Rates

 

[njhowie]

So are we going to hit the inversion 2/10 yr level soon?

Possibly towards year end.

 

[brewer12345]

No idea whether we are topping out on rates. I kind of doubt it, but it's worth remembering that we only know in hindsight. That said, I find retail cds with a 3 handle and a modest early surrender penalty attractive enough to jump on. Worst case scenario is rates spike and I surrender and reinvest.