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

[almost there]

Schwab Value Advantage Money Fund® Investor Shares
(SWVXX) is 2.1981% Just a heads up. Good place to park liquid funds.

 

[JoeWras]

That was an interesting read about repros, I have heard them mentioned on CNBC but had no idea what they were talking about.

Now for the Vanguard Federal Money Market Fund VMFFX, it holds almost 73% in US government obligations. Does that mean that interest paid by the Settlement Fund (which is holding VMFFX) is exempt from CT state income tax? I thought I have read here that VMFFX interest is included in CT state income tax?

From what I read in the fine print, the US govt obligations have to be over 50% for each of the 4 quarter-ends in the year. This has been true for most of the previous years, including last year which I referenced in the link above. Note that the 73% was for last year. This would qualify those 50% states. It doesn't mean you get the full amount exempt, but you get 73% of it. Your tax person should be able to do the math. If you use turbotax, it asks you this question and you shouldn't blow it off.

But here's the bad news. That link is from last year. Here's the current situation. Well below 50%. This means that in some states, you may not be able to exempt any of your earnings from VMFXX if this ratio persists. And I as I mentioned, it probably was already broken by 2nd quarter end.

 

[target2019]

Schwab Value Advantage Money Fund® Investor Shares
(SWVXX) is 2.1981% Just a heads up. Good place to park liquid funds.

We use SWVXX. Here are more details:

Schwab Value Advantage Money Fund® - Investor Shares
Type: Mutual Funds Symbol: SWVXX Net Expense Ratio: 0.340%
Summary
Objective
The fund’s goal is to seek the highest current income consistent with stability of capital and liquidity.

Highlights
Seeks to generate current income while maintaining liquidity
Invests in high-quality, short-term money market investments issued by U.S. and foreign issuers
Actively managed, benefiting from extensive credit research and professional money management

 

[pletal]

Michigan State FCU has a 7 year at 3.76 % 100k min deposit. Any thoughts on this one? Hold out , or go for it? It fills in my CD ladder nicely

 

[Dash man]

Michigan State FCU has a 7 year at 3.76 % 100k min deposit. Any thoughts on this one? Hold out , or go for it? It fills in my CD ladder nicely

Seven years is a long time for 3.76%. I’m staying 2 years or less right now. I may go to 5 years at 4% and 7 years at 5%.
I believe patience will be rewarded.

 

[Car-Guy]

Seven years is a long time for 3.76%. I’m staying 2 years or less right now. I may go to 5 years at 4% and 7 years at 5%.
I believe patience will be rewarded.

Agree, seven years is to long... I'd like to be reasonably sure I'll be here to collect! 2 to 3 years at ~4% is what I'm looking for. Schwab is getting close. (Maybe after September, after the Fed's next rate hike.)

 

[ShokWaveRider]

Lounging in MM till the end of the year before we make a decision on what to do with our cashish.

 

[freedomatlast]

Michigan State FCU has a 7 year at 3.76 % 100k min deposit. Any thoughts on this one? Hold out , or go for it? It fills in my CD ladder nicely

NASA FCU has a 49 month CD at 3.85%

 

[audreyh1]

Rates popped a bit this morning. Got 6 month T-bill at annualized rate 3.334% at auction this morning.

 

[Bruno]

Wife renewed her Discover 1 yr CD for 2.5% today. I could not get her to move to savings. I wanted her to wait. She was EXCITED it went up from .5%.

 

[Car-Guy]

Schwab's 9mo through 24mo CD's all moved up a few more tenths today. Not exactly skyrocketing but they moved up more than NASA's Artemis 1 did today.

 

[John Galt III]

Penfed still has the same offer of 3.25% for 3 year CD and 3.20 % for the 5 and 7 year. Oh, and they also say "these rates won't last long".

Well, yeah, they ought to change upwards, lol.

 

[audreyh1]

It gets a bit unnerving what Fidelity shows as "Expected Yield" for their treasury auction as sometimes it's quite a bit off. As you can see here over the weekend and early this morning it was quite a bit lower than I expected.

But I know from experience that the auction price is going to be pretty close to whatever the secondary treasury market was trading on Friday or early Monday morning. And I had purchased a 6-month T-bill in the first week of August that came in at 3.13%, so I was expecting at least 3.2% was likely. And the Treasury Direct auction results from today show that it came in above 3.2% - annualized 3.334%.

It's just annoying to get off "Expected Yield" values from Fidelity. I have no idea how they calculate such a thing. Sometimes what they give is much closer to recent market rates.

 

[JoeWras]

It gets a bit unnerving what Fidelity shows as "Expected Yield" for their treasury auction as sometimes it's quite a bit off. As you can see here over the weekend and early this morning it was quite a bit lower than I expected.

But I know from experience that the auction price is going to be pretty close to whatever the secondary was trading on Friday or early Monday morning. And I had purchased a 6-month T-bill in the first week of August that came in at 3.13%, so I was expecting at least 3.2% was likely. And the Treasury Direct auction results from today show that it came in above 3.2% - annualized 3.334%.

It's just annoying to get off "Expected Yield" values from Fidelity. I have no idea how they calculate such a thing. Sometimes what they give is much closer to recent market rates.

Vanguard, too, seems conservative on this. It is a market, after all, and a market isn't settled until the auction closes. I think they don't want flak by over estimating.

 

[audreyh1]

Well, they were going way, way under in this case, and like I said sometimes they are much closer. I see little rhyme or reason to it. Whatever, I just have to do my own research to estimate expected yield pre-auction.

 

[copyright1997reloaded]

Rates popped a bit this morning. Got 6 month T-bill at annualized rate 3.334% at auction this morning.

Same.
I've been picking these as they are decently up the yield curve without committing for too long if rates start moving up quickly. They also have the advantage of payment at maturity (no coupons) and more importantly are auctioned every week.

 

[JoeWras]

Well, they were going way, way under in this case, and like I said sometimes they are much closer. I see little rhyme or reason to it. Whatever, I just have to do my own research to estimate expected yield pre-auction.

Imma gonna go out on a limb and guess that VG and Fidelity didn't catch up to Powel's remarks on Friday and the market reacted faster than whatever algorithm comes up with the guess.

 

[JoeWras]

Same.
I've been picking these as they are decently up the yield curve without committing for too long if rates start moving up quickly. They also have the advantage of payment at maturity (no coupons) and more importantly are auctioned every week.

I started with 13s to build a weekly ladder, and now I'm moving to 26s as the 13s roll off. I also threw in a note or two. As this rate bump matures, I may move to more 2 and 3 year notes. It is a bit nerve wracking as it involves guessing the CPI, the Fed's reaction to the CPI, and the money market.

 

[aja8888]

Originally Posted by audreyh1 View Post
Rates popped a bit this morning. Got 6 month T-bill at annualized rate 3.334% at auction this morning.

I also picked one up at that rate.

 

[audreyh1]

Imma gonna go out on a limb and guess that VG and Fidelity didn't catch up to Powel's remarks on Friday and the market reacted faster than whatever algorithm comes up with the guess.

Like I said I picked up a 6-month T-bill at 3.13% 4 weeks ago. So 6 month T-bills have been yielding above 3% for quite a while.

 

[MarieIG]

Well, they were going way, way under in this case, and like I said sometimes they are much closer. I see little rhyme or reason to it. Whatever, I just have to do my own research to estimate expected yield pre-auction.

I'm going to have to start doing this. I did get the six month T at 3.13; but have some CDs coming due in September so . . .

 

[jim584672]

Schwab had a non callable FDIC Toyota CD @ 3.6% 5 year. Rates popping.

 

[almost there]

Schwab had a non callable FDIC Toyota CD @ 3.6% 5 year. Rates popping.

Well thats something, got a 3.5% 5 yr there a couple months ago.
Funny how slow it is on the receiving end. LOL LOL
In the end, things will catch up. Its just a slow process as banks would rather lend than receive.

 

[Graybeard]

I wish I'd thought of this yesterday instead of around 2 pm today! I never have had an obligation in the future where you'd buy a bond to meet it. It dawned on me, I could buy a 13 week T bill that'll mature in early December vs leaving the money in the Settlement Fund for my RMD from Vanguard. I can still do this next week but I missed it for this week.

 

[jazz4cash]

I wish I'd thought of this yesterday instead of around 2 pm today! I never have had an obligation in the future where you'd buy a bond to meet it. It dawned on me, I could buy a 13 week T bill that'll mature in early December vs leaving the money in the Settlement Fund for my RMD from Vanguard. I can still do this next week but I missed it for this week.

Is that because you missed the auction? I use secondary market for that. It’s easier (for me) to match liabilities (known extraordinary expenses like property taxes, insurance premiums). I can pick a maturity very close to the due date. Actually I’m still waiting for someone to explain the advantages of buying at the auction. I start earning immediately, too