Best CD, MM Rates & Bank Special Deals Thread 2020 - Please post updates here

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GNMA- the refi risk makes it like you are buying bonds callable at any time. So rates fall and refis mean return of capital and likely some capital loss due to reduced overall coupon.

Rates rise and capital loss results like other fixed income security.

They work best in my opinion in stable rate environment. We appear to be in one-but for how long?
 
Richard4444 said:
I purchased some GNMAs which yield ~2% with an expected duration of ~4.5 years. FDIC guaranteed, compared to a CD, it seems like a no brainer (but I've been wrong way too many times).

Rich
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GNMAs are not FDIC guaranteed. FDIC covers bank depositors.

GNMAs are backed by the US government, but not FDIC.
 
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The GNMA funds seem to have held up pretty well over a decade of falling rates. Kinda like everyone thought interest rates couldn’t go lower and stay depressed for a decade.
 
jazz4cash said:
Ha! After reading the first sentence in the linked article.......

“Investors today are scrambling for yield, and one place they are looking is at funds of mortgage-backed securities”

I glanced at the date.......Nov, 2011!
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I provided a link that explains the negative convexity characteristic of mortgage-backed bonds. It’s still valid. They behave worse than non-mortgage high quality bonds do during rising interest rates, and suddenly GNMA fund durations extend. Which is why they pay higher rates. Whether the current rates make up for near future convexity issues - above my pay grade.
 
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Repatriating CD money

As my CDs are maturing I have made a plan to begin moving funds back to my brokerage. I was able to negotiate a .3% cash payment with no strings attached.

In these times of .5 percent MM funds, I feel very good about that.
 
Is the .3% a one time payment or is it annual interest on cash in the account?
 
harley said:
Not sure if this has been mentioned, but Chase has a deal going where if you're not an existing customer you can start a checking account (with Direct Deposit) and get $200, open a savings account ($15K for 90 days) and get $200, or do both and get $500. I'm not eligible having done the last deal, but I thought I'd pass it on in case anyone is interested.

https://account.chase.com/consumer/banking/QC99622?jp_aid_a=T_63020&jp_aid_p=chasehome_3/hero
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Yes, I just got the $200 for opening a savings account with them.

In total I made $1,000 by shifting around a total of $20,000 to 3 different banks via the open a new account. During the year. It was fun ..... :)
 
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jazz4cash said:
Is the .3% a one time payment or is it annual interest on cash in the account?
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It's one time. This is a brokerage account so I will be investing the funds in short-term bonds or one of the other ideas mentioned here.

Point is some brokers will give you money for moving $ there. Mine is E-Trade. I believe TDA and Ally will do this too. Not sure about the others.
 
Sunset said:
Yes, I just got the $200 for opening a savings account with them.

In total I made $1,000 by shifting around a total of $20,000 to 3 different banks via the open a new account. During the year. It was fun ..... :)
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Do you later close the accounts or leave them open in case they have future offers?
 
I think in general to qualify for future offers you have to close the accounts. I took advantage of a generous Chase offer 3 years ago, but don’t currently qualify for this one because my accounts are still open.
 
harley said:
Not sure if this has been mentioned, but Chase has a deal going where if you're not an existing customer you can start a checking account (with Direct Deposit) and get $200, open a savings account ($15K for 90 days) and get $200, or do both and get $500. I'm not eligible having done the last deal, but I thought I'd pass it on in case anyone is interested.

https://account.chase.com/consumer/banking/QC99622?jp_aid_a=T_63020&jp_aid_p=chasehome_3/hero
Click to expand...

It appears that the bonuses are paid within 10 business days, but must maintain the account being open for 6 months even though the bonuses are based on 3 month maintenance of balances.
Still around a 2.67% effective rate on just the savings account.
 
pb4uski said:
Do you later close the accounts or leave them open in case they have future offers?
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I close the accounts after meeting all the terms for 2 reasons:

  1. I don't need them.
  2. They may offer a similar deal again in a year or two, and having the same type of account usually disqualifies someone.
Chase has a 2 yr rule.

This is the first year, I actively went for account opening bonuses, just because I was unhappy with interest rates and had extra cash lying around.
 
Sunset said:
I close the accounts after meeting all the terms for 2 reasons:

  1. I don't need them.
  2. They may offer a similar deal again in a year or two, and having the same type of account usually disqualifies someone.
Chase has a 2 yr rule.

This is the first year, I actively went for account opening bonuses, just because I was unhappy with interest rates and had extra cash lying around.
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I've got a couple of 1.6% Ally Cd's coming due in March. At that point, I'll probably work on using the money to take advantage of a couple of these bonuses. I do a lot of CC bonus offers, but have never done bank bonus offers before - mainly due to being able to make decent money on MM funds. Not anymore!
 
Sunset said:
I close the accounts after meeting all the terms for 2 reasons ... Chase has a 2 yr rule.
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The fine print says existing customers are excluded but does not have a 2-year rule or any other restriction. I've been collecting these bonuses since 2013, my last accounts were closed in March 2019, and I was able to open accounts with this offer.
 
LarryMelman said:
The fine print says existing customers are excluded but does not have a 2-year rule or any other restriction. I've been collecting these bonuses since 2013, my last accounts were closed in March 2019, and I was able to open accounts with this offer.
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I took advantage of a savings account offer, I've had a checking account with them for years. I guess the existing customer part really means existing customer with the subject savings account. (in my case).

I saw the 2 yr rule on an offer, I'm sure the rules change depending upon the offers.

For my chase savings account offer , I had to keep the $15K in for 3 months, and keep the account open with a minimum $300 for an additional 3 months.

I did this one once years ago for a $250 bonus.
 
Sunset said:
I took advantage of a savings account offer, I've had a checking account with them for years. I guess the existing customer part really means existing customer with the subject savings account. (in my case).

I saw the 2 yr rule on an offer, I'm sure the rules change depending upon the offers.

For my chase savings account offer , I had to keep the $15K in for 3 months, and keep the account open with a minimum $300 for an additional 3 months.

I did this one once years ago for a $250 bonus.
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There is work involved with opening, keeping eye on, and closing. Did you ever consider if your time/effort was worth $250?
 
I'm still working, so with these low rates, I decided to really step my retirement contributions to add more to a stable value fund that pays 3% (and has been for years) with no management fees. I'm already maxing out my 457B, but I can add over $50,000 per year more to my 401a contributions until I retire.
 
JustKickItForward said:
There is work involved with opening, keeping eye on, and closing. Did you ever consider if your time/effort was worth $250?
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Yeah, but that's for them to decide. I like to hear the offers. I've taken a couple of them myself, but for the most part don't bother.

It's funny how people do things differently for whatever reasons.

Some wait to try to get the very best deals, while others (like myself) take the first dip and don't worry about it.

Some do these bonus card/account deals, others don't want to do the paper work.

Some do Roth conversions to maximize wealth, other people say it's too much work and too much uncertainty for them to bother.

It doesn't bother me what others decide, but I do like hearing about the deals and strategies so I can decide for myself. And I'm probably lying, I'll bet someone can find some posts where it did seem to bother me, but I'm trying to stop that!

I used to do coupons in the grocery store. Kroger made it reasonably easy by mailing some to me based on things I've bought in the past. Then I realized how much time I was using to try to sort through them to decide what to use, and too often I'd forget the coupons in my car or not see that they've expired, so I stopped. Now they have digital coupons, and I find that even harder to use.
 
GenXguy said:
I'm still working, so with these low rates, I decided to really step my retirement contributions to add more to a stable value fund that pays 3% (and has been for years) with no management fees. I'm already maxing out my 457B, but I can add over $50,000 per year more to my 401a contributions until I retire.
Click to expand...

When you retire, perhaps keep your 401k just for this option instead of automatically rolling over into an IRA.
 
Dtail said:
When you retire, perhaps keep your 401k just for this option instead of automatically rolling over into an IRA.
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Yeah, I definitely think about it - I know others who have left our organization who are doing just that.
 
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