Best CD, MM Rates & Bank Special Deals Thread 2022 - Please post updates here

[njhowie]

I wish I understood this. What is the actual interest one would get (anual interest) at the end of the period 6.1% or 4.5% divided by 8 months?

So there are two components when you are not buying new issue CDs:
1. Interest component
2. Premium or discount (capital loss or gain)

Obviously, if you pay above 100, you are paying a premium, and over the remaining life of the CD you will need to subtract this amount out of your total return. If you pay below 100, then it is a discount, and you will get this additional gain over the remaining life of the CD - since it will always be paid 100.0 at maturity.

So, in my case, the CD has 3.1% coupon, I collect that interest for 8 months - so 3.1/97.7 for that portion of the return. Additionally, I get the difference of 97.7 to 100 as a capital gain component. So, an extra 2.3 points over 8 months ($23/$1000 CD).

Now, if they do call in 2.5 months at the end of February, I still get that additional 2.3 points, but more quickly, 6 months early. Annualize that portion, and it's over 10% in the event of a call.

You can use Fidelity's price yield calculator to figure the exact returns.

 

[ShokWaveRider]

So there are two components when you are not buying new issue CDs:
1. Interest component
2. Premium or discount (capital loss or gain)

Obviously, if you pay above 100, you are paying a premium, and over the remaining life of the CD you will need to subtract this amount out of your total return. If you pay below 100, then it is a discount, and you will get this additional gain over the remaining life of the CD - since it will always be paid 100.0 at maturity.

So, in my case, the CD has 3.1% coupon, I collect that interest for 8 months - so 3.1/97.7 for that portion of the return. Additionally, I get the difference of 97.7 to 100 as a capital gain component. So, an extra 2.3 points over 8 months ($23/$1000 CD).

Now, if they do call in 2.5 months at the end of February, I still get that additional 2.3 points, but more quickly, 6 months early. Annualize that portion, and it's over 10% in the event of a call.

You can use Fidelity's price yield calculator to figure the exact returns.

Thanks

 

[sengsational]

You can use Fidelity's price yield calculator to figure the exact returns.

I had to tweak how much interest the CD had earned between the last coupon and when you bought it, but I'm getting pretty close to the Fidelity bond calculator. Of course very doubtful they'd call it, given the current and expected rates (2% higher than the coupon).

 

[njhowie]

I had to tweak how much interest the CD had earned between the last coupon and when you bought it, but I'm getting pretty close to the Fidelity bond calculator. Of course very doubtful they'd call it, given the current and expected rates (2% higher than the coupon).

https://digital.fidelity.com/prgw/digital/priceyieldcalc/

If you're using some other calculator, make the price 97.7 - the 0.1 markup is in the Fidelity screen, just on the lower left cut off from my screen shot.

 

[Ready]

Ally is raising their online savings rate from 3% to 3.3% starting tomorrow. I use Ally as my main savings account and they have been good to work with so far.

 

[copyright1997reloaded]

Ally is raising their online savings rate from 3% to 3.3% starting tomorrow. I use Ally as my main savings account and they have been good to work with so far.

This is great given the over $50K I have stuck there for the $500 bonus offer.

 

[jazz4cash]

I think you guys all need to get a fidelity account. I am a Schwab customer (mainly) and i can tell you that i see more offerings on Fidelity.

At the risk of sounding like a broken record, Fidelity does still offer guest access so you could checkout the site without commiting funds. To be fair I don't think they are always ahead of others in terms of number of offerings

 

[lordjust]

At the risk of sounding like a broken record, Fidelity does still offer guest access so you could checkout the site without commiting funds. To be fair I don't think they are always ahead of others in terms of number of offerings

You can see new bond offerings without an account? I always had to log in but other options allowed me to view without logging in. Also, to create an account you have to add money ?

 

[audreyh1]

You can see new bond offerings without an account? I always had to log in but other options allowed me to view without logging in. Also, to create an account you have to add money ?

It’s possible to use the Fidelity guest access to play around with the tools. This is like a temporary login good for 30 days.
https://guest.fidelity.com/GA/profile

 

[pb4uski]

You can see new bond offerings without an account? I always had to log in but other options allowed me to view without logging in. Also, to create an account you have to add money ?

+1 I can access the overview page without logging in, but if I click on a hyperlink to look at offerings it prompts me to login.

https://fixedincome.fidelity.com/ftgw/fi/FILanding

 

[audreyh1]

+1 I can access the overview page without logging in, but if I click on a hyperlink to look at offerings it prompts me to login.

https://fixedincome.fidelity.com/ftgw/fi/FILanding

Someone who doesn’t have a Fidelity account should still be able to view the bond offerings on Fidelity if they use the Fidelity guest access option. https://guest.fidelity.com/GA/profile

 

[Henry Lili]

So buy some now, and if it goes higher buy some more. Folks really need to stop playing for the last tenth of a percent. Come on, where have rates been the past 10 years? Now you're pussyfooting because 5% isn't good enough? It's laughable if you think about it.

Old school process. I had to talk to an actual human yesterday to open an account there. They do a hard credit pull - fyi.

 

[Henry Lili]

Probably not very long IMHO.

This is the time, starting a month or two ago, to be locking in the best 3-5 year rates you can find.



Of course, people here have been saying that for a while now, so nothing new.

That's what I've been doing as well. Settling for 2 years as well.

 

[copyright1997reloaded]

SWVXX overnight jump from 3.81% to 3.85%. It looks like the latest FED hike is starting to positively impact money market rates. (I track this every day, it had been pretty stable in the 3.79-3.81 area for the last week/couple weeks.)

ETA: Fido FZDXX also jumped from 3.81% (yesterday) to 3.85% (today).
FZCXX from 3.50% to 3.55%
SPAXX from 3.40% to 3.45%

ETA2: My 3.3-3.5% T-BILLS from early September - early October aren't looking so hot now. The good news is that some of these are starting to roll off in the next month to two months and my average weighted yield on these my cash equivalents is now 4.093% (and that includes some money at 0% in accounts for current/near term expenses.)

 

[Henry Lili]

I would if I could but Vanguard has my money hostage and won’t let me send it to Utah First for another week or so.

I'm paying up ($20) to wire to Utah from Ally. I could avoid the fee if I set up a electronic transfer but that takes a couple/few business days though the rep at Utah mentioned that the offer is relatively new when I voiced my concern on the offer going away. Figured, lock in the 5% and pay up. Lol.

 

[ShokWaveRider]

SWVXX overnight jump from 3.81% to 3.85%. It looks like the latest FED hike is starting to positively impact money market rates. (I track this every day, it had been pretty stable in the 3.79-3.81 area for the last week/couple weeks.)

And SNAXX hit 4%.

 

[sengsational]

FZDXX reports the same "7 day yield" of 3.85%, but that's backward looking, I think. Is there a place where it shows what it is for 'now'?

 

[ER604me]

Wow. Very impressed and appreciative of all the knowledge and insights that people on the forum are willing to share. It has been a big help and I've learned a ton.

 

[copyright1997reloaded]

FZDXX reports the same "7 day yield" of 3.85%, but that's backward looking, I think. Is there a place where it shows what it is for 'now'?

It is 4.1%.

Here you go: https://institutional.fidelity.com/app/funds-and-products/2738/fidelity-money-market-fund-premium-class-fzdxx.html

Maybe I should update my spreadsheet to use 1-day rates to make my numbers look better! (At least while it is rising.)

 

[Dash man]

Received my $600 from Citizens Bank for opening a checking and savings account. Had to lock up at least $5,200 for about two months. Not bad!

 

[JoeWras]

The MM has finally bumped into the inversion.

We live in interesting times.

 

[njhowie]

FZDXX reports the same "7 day yield" of 3.85%, but that's backward looking, I think. Is there a place where it shows what it is for 'now'?

Go here:
https://tinyurl.com/2y2mdrzk

It provides looking at previous day and current day using the radio buttons on the left. For current day it's not filled in. I'm sure you could check throughout the day periodically to see when current day numbers are posted.

 

[Sue J]

This US Bank bonus offer requires 2 direct deposits for a $300 or $500 cash bonus-

https://www.usbank.com/splash/check...820&referral=commissionjunction&ecid=AF_42839

Started the application for DH since we will be using his pension direct deposit and before I finished there was an option to make it a joint account, so we did that.

You can fund the account opening by giving US Bank your logon and password to another bank account (not real comfortable with that) or with a credit or debit card. I used a debit card. A credit card may view this as a cash advance.

Quoting myself here. The $500 bonus posted to the US Bank account a few days ago and I'm transferring it our home bank, leaving the $25 opening balance. I'm going to check if I have to leave the account open for a while to avoid a fee or if I can close it.

This was a nice easy promotion and the bonus posted quickly after the 2 direct deposits.

 

[Montecfo]

Just now I bought secondary market, 8 month 6.5%. It is callable Feb 28, but coupon is 3.1%, so they likely won't be calling. However, if they do call, because I purchased at 97.6, yield jumps to 15.4% for the 2.5 months.

I call those "cushion" bonds. You have some secondary call protection.

 

[sengsational]

Thanks for the pointers to the institutional section at Fidelity! Good stuff.