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

[pc95]

A good bet 4% CDs will be available if not this year, this summer.
I will hold out until around that % for next ladder rung.

 

[explanade]

A good bet 4% CDs will be available if not this year, this summer.
I will hold out until around that % for next ladder rung.

For what term?

 

[pc95]

For what term?

3 or 5 year -take your pick.

 

[FindingForward]

Does anyone have any advice they can share re: breaking a cd - early withdrawals? Never did this before, but stuck in a couple of very low paying CDs opened earlier this year, vs current T Bill rates. One has onerous penalties, but is still worth breaking according to a bankrate.com online calculator I found.

Just not sure how it works tax-wise: am I still going to get a 1099 on interest, even though all interest (and a small part of principal) will negated by the early withdrawal penalties? Are there other things to consider before breaking a CD?

 

[Sasquatch1]

A-rated Brighthouse MYGA rates just increased. 3.7, 4.1, and 4.15 for 3, 5, and 7 years 10% withdrawals permitted each year.

Do these have age restrictions?

 

[audreyh1]

Does anyone have any advice they can share re: breaking a cd - early withdrawals? Never did this before, but stuck in a couple of very low paying CDs opened earlier this year, vs current T Bill rates. One has onerous penalties, but is still worth breaking according to a bankrate.com online calculator I found.

Just not sure how it works tax-wise: am I still going to get a 1099 on interest, even though all interest (and a small part of principal) will negated by the early withdrawal penalties? Are there other things to consider before breaking a CD?

Here is an article: https://www.bankrate.com/banking/cds/paying-tax-on-cd-interest/

How early withdrawal penalties affect taxes owed

In some cases, early withdrawal penalties may reduce your tax obligation.

Most traditional CDs charge penalties for taking out money before the maturity date. If you pay an early withdrawal penalty, you can deduct the full amount from your taxes, even if it’s an amount that’s greater than the interest earned. So, if you earned $50 in interest, but you paid an early withdrawal penalty of $100, the full $100 can be deducted on taxes.

Any early withdrawal penalties will be included in box 2 of your 1099-INT form from the issuing institution and clearly labeled “early withdrawal penalty.”

 

[Dtail]

Do these have age restrictions?

I believe the maximum age allowance is 85 for this company, as it is for many companies.

 

[jim584672]

Had some money open up and did a 6 month T-Bill @ 2.346% today.

 

[jazz4cash]

I believe the maximum age allowance is 85 for this company, as it is for many companies.

That is correct.

 

[Done]

Alliant Credit Union moved their savings account rate to 1% today.

 

[nwsteve]

Does anyone have any advice they can share re: breaking a cd - early withdrawals? Never did this before, but stuck in a couple of very low paying CDs opened earlier this year, vs current T Bill rates. One has onerous penalties, but is still worth breaking according to a bankrate.com online calculator I found.

Just not sure how it works tax-wise: am I still going to get a 1099 on interest, even though all interest (and a small part of principal) will negated by the early withdrawal penalties? Are there other things to consider before breaking a CD?

Here is a handy link to do the math to confirm if you should break the CD. You do need to know the CD terms especially your CD's early withdrawal penalty. Every bank has their own penalty model and typically vary by length of original term.
https://www.depositaccounts.com/TOOLS/BREAK-CD-CALCULATOR.ASPX

 

[xlf11]

CIBC Agility online Saving 1.27% as of 6/14/22, no string attached.

 

[NomDeER]

Ally has the 12 month CD at 1.50% but a 1 year T bill is 2.89%. Rhetorical question - why would anyone buy the CD?

Because most people know about CDs but don't know about or understand t bills? I've known about CDs since I opened my first bank account as a kid. I know nothing about t bills or how to go about getting one. I think that's true for most people. I wouldn't even be trying to understand t bills if I hadn't come across this thread.

 

[Graybeard]

Because most people know about CDs but don't know about or understand t bills? I've known about CDs since I opened my first bank account as a kid. I know nothing about t bills or how to go about getting one. I think that's true for most people. I wouldn't even be trying to understand t bills if I hadn't come across this thread.

I was in the same boat as you. A couple of months ago I became interested in TLH due to losses in my taxable account's bond fund. I did some reading, I read threads here and asked some questions. TLH can be complicated but I understand it well enough now to be able to understand how to do it and not run afoul of the Wash Sale rule which I thought I understood but clearly did not. Good thing I explored it.

About 6-8 weeks ago I came to the conclusion that bond funds were not just losing money this year but with lots of Fed rate hikes coming it was going to get much worse. I started to read about T bills and followed threads here and asked questions. I bought several in my taxable and Rollover IRA about 3 weeks ago, it is actually very easy to do, Treasury Direct always made it look so complicated. So I have sold all the shares of 2 of my 3 bond funds and will be buying T bills this year. The coupon may or may not be as high as the SEC yield of the bond funds but when they mature I will get back my principal vs losing to nav decreases as rates rise.

 

[Drake3287]

Speaking of early withdrawal/reinvestment of CD's, has anyone ever had luck in just asking a bank/S&L to wave the penalty fee? Such as for long term customers. Just curious if that ever happens.

I have had a bank once increase their CD rate just to keep me as a customer. Seem's like some branch managers have leeway in this.

 

[Sue J]

Discover Bank savings is now 0.90%

 

[erkevin]

Marcus raised theirs to .85%

 

[Chuckanut]

Discover Bank savings is now 0.90%

Tempting, but I recently bought a 3 mo CD for 1.6%. That was before the recent 0.75% increase from the Fed. Of course, I don't believe I will need instant access to the money in the next three months. YMMV.

Even 1.6% is still a pathetic return considering inflation. But, we hang on tight and do the best we can.

 

[almost there]

Looks like the CD rates are sending us a message from the future.
As to how long the rate increase will last.
Today at CH Sch. 1yr 2.900 / 18 mo. 3.050 / 2 yr 3.150, (3), (4) and (5) yr all. 3.250%
May hold off on the even amount 5 year ladder I had planned. Build a VERY small 5 yr. ladder. And put the bulk in to 5 yr CD's. When we get into the 3.5%- 4% range.
Thoughts?

 

[Silver]

Discover Bank savings is now 0.90%

I moved away from Discover when they were at .60% and Bask Bank was at 1.25% They are now at 1.5%.

 

[NomDeER]

About 6-8 weeks ago I came to the conclusion that bond funds were not just losing money this year but with lots of Fed rate hikes coming it was going to get much worse. I started to read about T bills and followed threads here and asked questions. I bought several in my taxable and Rollover IRA about 3 weeks ago, it is actually very easy to do, Treasury Direct always made it look so complicated. So I have sold all the shares of 2 of my 3 bond funds and will be buying T bills this year. The coupon may or may not be as high as the SEC yield of the bond funds but when they mature I will get back my principal vs losing to nav decreases as rates rise.

That was smart. I wish I had done the same thing. I'm wondering if it's too late and whether selling my bond funds now to invest in T bills would be locking in losses. I have bond funds in my retirement accounts at both Vanguard and Fidelity. They aren't down as much as my stock funds, but they are down significantly. I suppose I could hedge my bets and leave some of my money in the bond funds but transfer some of the bond funds into an equity fund and some into treasuries. I also could use some of my cash and put it into treasuries. I have some money in my settlement fund at Vanguard.

Could you or someone else provide me (or direct me) to the clearest information about how to go about buying treasuries? I am a total newbie to this.

I moved away from Discover when they were at .60% and Bask Bank was at 1.25% They are now at 1.5%.

I've never heard of Bask Bank. Why and how are they so much higher than everyone else?

 

[Another Reader]

That was smart. I wish I had done the same thing. I'm wondering if it's too late and whether selling my bond funds now to invest in T bills would be locking in losses. I have bond funds in my retirement accounts at both Vanguard and Fidelity. They aren't down as much as my stock funds, but they are down significantly. I suppose I could hedge my bets and leave some of my money in the bond funds but transfer some of the bond funds into an equity fund and some into treasuries. I also could use some of my cash and put it into treasuries. I have some money in my settlement fund at Vanguard.

Could you or someone else provide me (or direct me) to the clearest information about how to go about buying treasuries? I am a total newbie to this.



I've never heard of Bask Bank. Why and how are they so much higher than everyone else?

You can read about them at depositaccounts.com. They are small but have been around for awhile. I deposited a small amount to try them out. So far so good...

 

[jmmec]

Looks like the CD rates are sending us a message from the future.
As to how long the rate increase will last.
Today at CH Sch. 1yr 2.900 / 18 mo. 3.050 / 2 yr 3.150, (3), (4) and (5) yr all. 3.250%
May hold off on the even amount 5 year ladder I had planned. Build a VERY small 5 yr. ladder. And put the bulk in to 5 yr CD's. When we get into the 3.5%- 4% range.
Thoughts?

What about a 5-year or 7-year Treasury Note? There is an auction for both next week. The 7-year hit 3.583% yesterday but is down to 3.375% at the moment.


I'm thinking about dumping in $1M to generate around $30k a year for the next 7 years. Foolish? Wait for CD rates to increase, if they will? I don't know.

 

[Chuckanut]

What about a 5-year or 7-year Treasury Note? There is an auction for both next week. The 7-year hit 3.583% yesterday but is down to 3.375% at the moment.


I'm thinking about dumping in $1M to generate around $30k a year for the next 7 years. Foolish? Wait for CD rates to increase, if they will? I don't know.

I don't know. But, the idea of locking in a rate under 4% for five to seven years does not sit well with me when the current inflation rate is over double that interest rate. OTOH, my crystal ball is cracked, I can't read minds, and my time machine is still broken. So I doubt if I know more than most.

Personally, I am going to ladder my 'bank' money in 3-6-9-12-15-18 month maturities and see what happens. The exception would be if I see things like 10 year T-Bonds going for double digit rates. Then I might buy a few of those just for the fun of it.

 

[Sue J]

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

I moved away from Discover when they were at .60% and Bask Bank was at 1.25% They are now at 1.5%.

Thanks for posting. I never heard of Bask Bank. I checked it out and read the FAQs. Like T Mobile Money they do not have joint accounts but they do have a way to add a beneficiary.

I’m not going to move anything yet, but will keep them in mind for when rates are done climbing.

Are crystal balls on sale yet? Maybe the next upcoming Amazon Prime Day.