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

[DuluthGA]

The research pages are behind. I have the fund and it reports the yield daily. As of this morning it says 2.08%.

Edit, if you click on your link, it also says 2.08%.

Is there another Fidelity MM fund earning similar thats open to new investors and has lover minimum investment? This one shows closed on my account and the other shows $100k min

 

[COcheesehead]

is there a fidelity fund mm earning similar open to new investors with $25k to invest? This one says $100k min and the other mentioned is closed to new investors.

fdrxx 1.74%
fzfxx 1.71%

 

[DuluthGA]

fdrxx 1.74%

fzfxx 1.71%

Tks

 

[audreyh1]

Penfed 5 year CD is now 3.2 %. 7 year CD also 3.2 %. Not high enough! cmon 4 % !

The 5 and 10 year treasury rates have dropped, not risen, so looking for longer rates to rise significantly may be futile until 5 and 10 year treasuries move back up again.

All the rising action is in the short end right now - 1 month to 2 years.

 

[tulak]

The research pages are behind. I have the fund and it reports the yield daily. As of this morning it says 2.08%.

Edit, if you click on your link, it also says 2.08%.

Got it. You were seeing the 8/3 yield. The site I linked to was showing the 8/2 yield when I looked. It looks like there’s a delay before the page I referenced is updated. Thanks!

 

[MarieIG]

Check out Vanguard's money market (and sweep account) rates. They are changing constantly (which is why I'm not posting, the info might be incorrect by tomorrow) but appear to be up, i.e. in the 2% range.

 

[COcheesehead]

The 5 and 10 year treasury rates have dropped, not risen, so looking for longer rates to rise significantly may be futile until 5 and 10 year treasuries move back up again.

All the rising action is in the short end right now - 1 month to 2 years.

Correct. The short end is rising. Intermediates have dropped. The time to buy in the 5-10 year range was about 6-7 weeks ago when rates spiked. I was buying munis around 4.5%. Today those same durations are around 3.7%.

 

[Chuckanut]

Penfed 5 year CD is now 3.2 %. 7 year CD also 3.2 %. Not high enough! cmon 4 % !

Five years at 3.2%. Inflation is currently raging at 9% for the 12 months ending in June.

If I was a banker, I would take that bet.

 

[Gotadimple]

Announced this morning 8/4, American Express High Yield Savings moves to 1.4% from 1.25% announced on 7/29. This matches Live Oak Bank, which has been at this rate since mid-June.

Coincidentally, while not matching Treasury yields, Live Oak does offer a 1-year CD at 2.50%. With a $2500 minimum to open.

Amex Bank has a different structure for CDs that pays less for 18-, 36-. and 48-months by 1% or more. 1-year CD is 2.25%, 18-months 1.00% etc (see the link below). 5-year CD is 3.0% roughly matching PenFed. No minimum to open, but early withdrawal penalties are stiff.

https://www.americanexpress.com/en-us/banking/online-savings/cd/?linknav=savings-nav-cd

This whole thing just gets more interesting for internet-based banks.

 

[Livefree]

I purchased a 3 month brokered CD from Fidelity @ 2.4% today.

 

[Freedom56]

Fidelity money market funds yields are rapidly approaching their last peaks back at the end of 2018. The yields already exceed those of most short duration bond funds and by September should exceed short and medium duration bond funds. Attached are the charts for FZDXX and FXFXX.

 

[explanade]

Do the brokerage MM funds have FDIC protection or something equivalent?

Or only the brokerage CDs?

 

[disneysteve]

Ally up to 1.6%

 

[audreyh1]

Do the brokerage MM funds have FDIC protection or something equivalent?

Or only the brokerage CDs?

They are covered under SIPC I believe, but nothing like FDIC. The Govt MM funds are supposed to use mostly govt issued short-term debt, so those are very safe.

The brokerage CDs are issued by banks therefore they usually have FDIC protection.

And of course Treasuries are backed by the US govt.

There are treasury only MM funds, and their rates have gone up dramatically too. FDLXX is yielding 1.38% right now, and has been climbing with the other MM funds. They generally yield less because they have the highest quality credit.

 

[explanade]

OK so these brokerage MM funds like VMFXX which are yielding around 2% are probably what, AAA corporate securities?

 

[dvalley]

Fidelity money market funds yields are rapidly approaching their last peaks back at the end of 2018. The yields already exceed those of most short duration bond funds and by September should exceed short and medium duration bond funds. Attached are the charts for FZDXX and FXFXX.

I noticed a couple of those MM funds just yesterday but at least the ones I checked said not open to new investors or something to that effect.

 

[Freedom56]

I noticed a couple of those MM funds just yesterday but at least the ones I checked said not open to new investors or something to that effect.

FZDXX and FXFXX have been my default cash sweep funds for my roll-over IRA and taxable accounts at Fidelity. I wasn't aware that they were not accepting new investors. It makes no sense given how deep the treasury markets are. You can roll 30 day treasury bills at 2.2% currently and do effectively the same as a money market fund.

 

[COcheesehead]

I noticed a couple of those MM funds just yesterday but at least the ones I checked said not open to new investors or something to that effect.

FZDXX is open. It has a note that it can only be used by natural persons, but there is no other restriction. So unless you are a trust or partnership or something like that, you can invest in it.

 

[NomDeER]

OK so these brokerage MM funds like VMFXX which are yielding around 2% are probably what, AAA corporate securities?

Nope. Government securities:

https://investor.vanguard.com/investment-products/mutual-funds/profile/vmfxx#overview

 

[John Galt III]

The 5 and 10 year treasury rates have dropped, not risen, so looking for longer rates to rise significantly may be futile until 5 and 10 year treasuries move back up again.

All the rising action is in the short end right now - 1 month to 2 years.

So everyone thinks rates will top out, or drop, in 3 years. What are they going to do with their money when their CD's mature in 2025, and interest rates are back down to 0.7 % ? Invest in the stock market? Apparently so. Just my guess.

 

[COcheesehead]

So everyone thinks rates will top out, or drop, in 3 years. What are they going to do with their money when their CD's mature in 2025, and interest rates are back down to 0.7 % ? Invest in the stock market? Apparently so. Just my guess.

I haven’t been afraid to go longer. I doubled the yield of my ladder this year by buying 10 years plus. The yield makes my plan work, anything over 4% works for me. My withdrawal rate is in the low 2’s.


I buy muni bonds for income. I get growth and inflation hedges elsewhere

 

[audreyh1]

OK so these brokerage MM funds like VMFXX which are yielding around 2% are probably what, AAA corporate securities?

No,

VMFXX-Vanguard Federal Money Market Fund
The fund invests at least 99.5% of its total assets in cash, U.S. government securities, and/or repurchase agreements that are collateralized solely by U.S.

It’s a US Govt MM fund.

US 1 month treasuries are yielding 2.1%+, and VMFXX has a very low expense ratio, so it’s not surprising to see 2% yield now.

 

[Dash man]

I haven’t been afraid to go longer. I doubled the yield of my ladder this year by buying 10 years plus. The yield makes my plan work, anything over 4% works for me. My withdrawal rate is in the low 2’s.





I buy muni bonds for income. I get growth and inflation hedges elsewhere

I’ve purchased a few Munis going out as long as 20 years, several weeks ago when some deals were available. The rest of my fixed income is mostly in short-term CDs or treasuries. I believe rates will increase giving us better long term opportunities.

 

[audreyh1]

I noticed a couple of those MM funds just yesterday but at least the ones I checked said not open to new investors or something to that effect.

FZDXX is open, it just has a high initial minimum of $100K.

 

[jazz4cash]

So everyone thinks rates will top out, or drop, in 3 years. What are they going to do with their money when their CD's mature in 2025, and interest rates are back down to 0.7 % ? Invest in the stock market? Apparently so. Just my guess.

I don’t know what rates will do. I plan to continue laddering with CDs, Treasuries, individual corporate notes, bonds and/or MYGAs with 3-5yr maturities and take the best rates I can get. I also have a few munis that are locked in @ 3-4% for 10-15 yrs. I never had to settle for anything less than 2.25%.