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

[Gotadimple]

American Express announced a change in interest rates on their High Yield Savings account from 1.4% (announced 8/4) to 1.5% effective 8/11.

 

[RetiredAndLovingIt]

As promised, 5 year 4%+ Cd's at efcufinancial.org

https://www.efcufinancial.org/media/201863/august-2022-rate-sheet-2-1.pdf


Hopefully this is the first of many to come

 

[Montecfo]

Y'all really ought to check out CFG Bank's rates.

Money Market Savings now at 2.55%. 2nd hike this month.

CD's no slouch either. 12 month at 3.05 pct.

 

[RetiredAndLovingIt]

Another 4% (37 month) Certificate at Great River Federal Credit Union with a possible Bump feature. Ken at DepositAccounts.com will have more information soon.

https://www.greatriverfcu.org/money-market-and-share-certificates/

 

[freedomatlast]

Y'all really ought to check out CFG Bank's rates.

Money Market Savings now at 2.55%. 2nd hike this month.

CD's no slouch either. 12 month at 3.05 pct.

From CFG Bank's website: **Due to volume – effective 8/11 we have temporarily suspended online account applications. All applications submitted prior to 8/11 will be processed normally, but may experience some delays. The system will be back up shortly. We apologize for any inconvenience. For any questions, please email contactus@cfg.bank.

 

[jazz4cash]

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

American Express announced a change in interest rates on their High Yield Savings account from 1.4% (announced 8/4) to 1.5% effective 8/11.

I just can’t fathom how a large financial institution would make such a tiny change in such a short span of time. Makes me wonder.

 

[Another Reader]

I just can’t fathom how a large financial institution would make such a tiny change in such a short span of time. Makes me wonder.

And the new rate isn't competitive...

 

[disneysteve]

If a brokered CD says it pays interest semiannually, does that payment get added to the principal or paid out to my settlement fund, or do I get to choose when I buy it which way it gets handled?

 

[jazz4cash]

If a brokered CD says it pays interest semiannually, does that payment get added to the principal or paid out to my settlement fund, or do I get to choose when I buy it which way it gets handled?

Brokered CD interest gets paid out to your settlement fund.

 

[disneysteve]

Brokered CD interest gets paid out to your settlement fund.

Thanks

 

[explanade]

Brokered CD interest gets paid out to your settlement fund.

What happens to the principal?

Especially if you didn't set auto-rollover?

Also can you change the auto-rollover setting after buying the CD at Fidelity?

 

[COcheesehead]

What happens to the principal?

Especially if you didn't set auto-rollover?

Also can you change the auto-rollover setting after buying the CD at Fidelity?

A matured instrument gets paid into your core settlement account.

 

[Gotadimple]

I just can’t fathom how a large financial institution would make such a tiny change in such a short span of time. Makes me wonder.

I can. Competitive is a double-edged sword when it comes to banks and credit unions.

If they don't need the money, they don't have to compete against other banks that do need the deposits.

If they don't want to get criticized by the FDIC for having too many deposits and not using the money to make loans, they will manage the problem by not being competitive to target savers (and borrowers).

That said, for high yield savings account this rate is right in the middle of the pack, according to Bankrate.com
https://www.bankrate.com/banking/savings/best-high-yield-interests-savings-accounts/

 

[John Galt III]

Was going to buy some Penfed 5 or 7 year CDs at 3.2% but don't have the right phone with me for two factor authentication ! Will have to wait til Monday. Arggghh.

 

[WannabeRetired]

Was going to buy some Penfed 5 or 7 year CDs at 3.2% but don't have the right phone with me for two factor authentication ! Will have to wait til Monday. Arggghh.

There are institutions offering much higher rates than 3.2% for 5-year CDs right now.

 

[tulak]

And the new rate isn't competitive...

American Express is never competitive. I gave up on them a couple of years ago.

 

[Graybeard]

I'm not aware of a thread discussing current yields on T bills. Is it OK to use this thread to discuss buying T bills vs CDs, MM and bank deals?

I won't post anything until I get the OK, I don't want to complicate the thread with another topic if the Mods would not want that.

 

[Dash man]

I'm not aware of a thread discussing current yields on T bills. Is it OK to use this thread to discuss buying T bills vs CDs, MM and bank deals?



I won't post anything until I get the OK, I don't want to complicate the thread with another topic if the Mods would not want that.

You should use the Golden age of fixed income investing:

We are entering a "Golden Period" for fixed income investing
https://www.early-retirement.org/forums/showthread.php?t=114400

 

[audreyh1]

I'm not aware of a thread discussing current yields on T bills. Is it OK to use this thread to discuss buying T bills vs CDs, MM and bank deals?

I won't post anything until I get the OK, I don't want to complicate the thread with another topic if the Mods would not want that.

Yes.

Not a Mod, but IMO during periods where T-bills are competitive with CDs, MM funds and high yield savings accounts it’s certainly appropriate to discuss them here.

 

[Car-Guy]

Not a Mod,

That's really unfortunate "for us".

 

[JoeWras]

We have already discussed T-bills here upstream on the thread.

In "normal" times, they'd not be worth discussing. We are in an extra ordinary time where T-bills are ahead. Anyone only searching for bank rates is leaving an important competitive product out of the mix if they ignore the T-bill, at this time.

There are some things to consider too:

• T-Bills have the added benefit of no state or local income taxation
• T-Bills are NOT FDIC insured (but... it would be black swan time for them to fail)
• You have to carry them on Treasury Direct or through your broker, not an FDIC insured bank

 

[pb4uski]

Yes.

Not a Mod, but IMO during periods where T-bills are competitive with CDs, MM funds and high yield savings accounts it’s certainly appropriate to discuss them here.

+1 I don't see UST as any different from brokered CDs that are discussed here... both are full fait and credit, involve interest rate risk, etc.

 

[GenXguy]

An add-on CD is a spectacular deal. After a year the NFCU deal becomes 3.3% for 21 months. After 2 years it's 3.3% for 11 months. You're getting a long dated call option on that rate. I wish the term was longer, and of course a higher rate I would not hate! I had just about 1K laying around in a share account earning 0.25%

Edit: that should be 3.3% for 9 months after 2 years.

What I don't like about NFCU is that I can't add POD when I'm adding the certificate because it requires each POD designated to have an access number, which they don't.

You can send in a form to them, but there's not room for enough PODs on it, plus it requires SSN, which I don't have.

And then there's no way to verify the POD info online yourself.

 

[Graybeard]

Thanks for the replies.

So here is my thinking on T bills instead of CDs or online savings accounts. I haven't been buying T bills in my taxable and rollover IRA for a month or so because I think yields could move up due to inflation and recession fears. So keeping things very short term and liquid seems like a good idea. The 3 month T bill on Friday 8/12 was 2.63% and the indicative yield on the 8/15 auction is 2.51% but both of those may change each day. The Vanguard Settlement fund's 7 day SEC yield as of Friday 8/12 is 2.11% so it seems like a better place to wait vs locking in a 90 or 180 day T bill right now. I might get some 30 day or 60 day T bills depending upon what things look like but 60 days is a bit long, those both auction every Tuesday.

Fed meeting is 9/20 and 9/21 so I'll see how much they raise the overnight rate and see how it affects the T bill rates, 50 bps is being touted after the CPI and was it GDP last week cooled inflation fears but I think it'll be 75 bp again. Also the Fed will be doing some talking at the end of August at some annual meeting out west and may influence things.

I would like to move the money I want in T bills later this year with the idea I am locking in a good yield should the Fed start to decrease the FOMC rate early next year.

 

[JoeWras]

Thanks for the replies.

So here is my thinking on T bills instead of CDs or online savings accounts. I haven't been buying T bills in my taxable and rollover IRA for a month or so because I think yields could move up due to inflation and recession fears. So keeping things very short term and liquid seems like a good idea. The 3 month T bill on Friday 8/12 was 2.63% and the indicative yield on the 8/15 auction is 2.51% but both of those may change each day. The Vanguard Settlement fund's 7 day SEC yield as of Friday 8/12 is 2.11% so it seems like a better place to wait vs locking in a 90 or 180 day T bill right now. I might get some 30 day or 60 day T bills depending upon what things look like but 60 days is a bit long, those both auction every Tuesday.

Fed meeting is 9/20 and 9/21 so I'll see how much they raise the overnight rate and see how it affects the T bill rates, 50 bps is being touted after the CPI and was it GDP last week cooled inflation fears but I think it'll be 75 bp again. Also the Fed will be doing some talking at the end of August at some annual meeting out west and may influence things.

I would like to move the money I want in T bills later this year with the idea I am locking in a good yield should the Fed start to decrease the FOMC rate early next year.

At this exact point in time, you can't go wrong with VMFXX. It is better than languishing in a bank account.

But this will change someday, and change fast.

One suggestion? If someone wants to try out their broker's treasury buying process, now is a good time to buy a small 8 or 13 week bill. There's little risk, and you can understand the process so that perhaps someday when you want to buy the big one, you'll have more confidence in the interface.

It is very different than buying an equity, ETF or mutual fund. Windows open and close on purchasing at auction. Settlement occurs later after the results are announced. The mechanics are very different, so it is worth trying out and buying a small T-bill or two right now to get a feel for how it all works, and what is presented on your brokerage holdings screen.