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

[Another Reader]

Barclays, Marcus and Sallie Mae need to catch up...

 

[Graybeard]

Today Ally's No Penalty CD is 2% which is 15 bp above their online savings account. I wonder if the NP CD will go up 15 bp tomorrow?

 

[disneysteve]

Today Ally's No Penalty CD is 2% which is 15 bp above their online savings account. I wonder if the NP CD will go up 15 bp tomorrow?

I understand the "no penalty" feature but even if they raise it to 2.15%, you can get a 12-mo brokered CD for 3.2%. That's a big difference just to get the no penalty feature. Heck, you can get a 3-mo brokered CD for 2.7%. Rather than taking such a low return with Ally, why not just ladder some brokered CDs. You can buy one maturing every month if you'd like.

 

[pb4uski]

In the header.

Not on the Android app.

 

[Chuckanut]

So it’s the app’s problem. Nice to know that.

2% from Ally…. I’ll stick with my CD ladders for now.

 

[aja8888]

Not on the Android app.

They need to fix the app! I use a Chromebook for posting here.

 

[disneysteve]

I never really noticed there is no header on the mobile app. I’ll need to keep that in mind going forward.

What app is that? I access the site on my phone using the browser and mobile version of the site. I see the headers on iPhone.

 

[jazz4cash]

What app is that? I access the site on my phone using the browser and mobile version of the site. I see the headers on iPhone.

It’s the Early Retirement Forum app on an iPhone 6. I do get headers if I use the browser.

 

[target2019]

Quick Reply doesn't have Title! Eat at Joes!! Discover Bank is a Laggard!!! 86 chars.

I wonder what goes on inside the institutions that lag on interest rates? Eventually they seem to pony up. Maybe that's their strategy. Something like, "We know our depositors follow interest rates, but ours aren't on top of things day-to-day, and they'll usually not switch institutions on a dime."

 

[JoeWras]

I wonder what goes on inside the institutions that lag on interest rates? Eventually they seem to pony up. Maybe that's their strategy. Something like, "We know our depositors follow interest rates, but ours aren't on top of things day-to-day, and they'll usually not switch institutions on a dime."

I think a lot matters based on their clientele. Our local credit unions have pathetic rates, and I don't think most clients even know what's out there. There likely is not much movement or outflows.

Meanwhile, Ally, Marcus, Synchronicity, etc. all play off each other, and many of their clients also are sophisticated enough to know about treasuries. They are assuredly seeing outflows, just judging by the posts I see here and bogleheads, it can't be trivial either.

BTW: I used my Discover card and Ate at Joes. And what's your problem with 86 characters?

 

[jazz4cash]

Lagging is not so bad compared to places like BofA. Their highest tier savings is .05%. 1M in a 3 yr CD earns .05%. They haven’t raised rates at all.

 

[target2019]

Train approaching / Whistle squealing / Stop / Avoid that run-down feeling / Burma-Sh

I think a lot matters based on their clientele. Our local credit unions have pathetic rates, and I don't think most clients even know what's out there. There likely is not much movement or outflows.

Meanwhile, Ally, Marcus, Synchronicity, etc. all play off each other, and many of their clients also are sophisticated enough to know about treasuries. They are assuredly seeing outflows, just judging by the posts I see here and bogleheads, it can't be trivial either.

BTW: I used my Discover card and Ate at Joes. And what's your problem with 86 characters?

Well, it cut off my latest. Lol.

Train approaching / Whistle squealing / Stop / Avoid that run-down feeling / Burma-Shave

 

[grasshopper]

Discover is giving 5% cash back at Eat at Joe's. Only 36 characters. OK 52 now.

 

[aja8888]

ALLY just raised their 12 month high yield CD to 2.7%.

(for those of you that can't see the header, I mentioned the institution in the body)

 

[Henry Lili]

Freedom CU in PA offering 4.08 for 36 months as well as sweet terms on lower term CDs. I have three pandemic-era there now that I was going to break anyway. May play dumb, call to break them, and take the counter if they offer the new rates.

 

[foxcreek9]

Lagging is not so bad compared to places like BofA. Their highest tier savings is .05%. 1M in a 3 yr CD earns .05%. They haven’t raised rates at all.

I worked in a small town bank for a couple of years after leaving the corp world and it is amazing how many people have 10s and more than handful 100k+ in plain old savings account earning next to nothing (this was in 17 and 18). I sometimes thought I would slip them a note saying for 5% of their gain I could show them how to make thousands, ie move their money to Ally, etc. For many, this was all the money they had but I think internet banking scared them and they had no one (or didn’t trust) to guide them.

 

[Graybeard]

I understand the "no penalty" feature but even if they raise it to 2.15%, you can get a 12-mo brokered CD for 3.2%. That's a big difference just to get the no penalty feature. Heck, you can get a 3-mo brokered CD for 2.7%. Rather than taking such a low return with Ally, why not just ladder some brokered CDs. You can buy one maturing every month if you'd like.

Oh I agree, I would never consider either of them. I was just wondering, sort of a rhetorical question, if they'd increase the NP CD. I moved most of my money from Ally to Vanguard and have been in the Settlement Fund and buying T bills.

 

[disneysteve]

I moved most of my money from Ally to Vanguard and have been in the Settlement Fund and buying T bills.

Exactly what I've done.


I've still got 2 CDs there earning a now-pathetic rate. It probably makes sense to pay the penalty and move the money but they mature in October and the beginning of November so I'm not going to bother at this point.


I've also got about 60K in the money market. At least with the most recent increase to 2%, it's nearly the same as what the VG settlement account is paying so I'll leave that there just for diversification and accessibility.

 

[kongmen]

Synchrony is up to 2.05%

Nice Thanks!

 

[PatrickA5]

I worked in a small town bank for a couple of years after leaving the corp world and it is amazing how many people have 10s and more than handful 100k+ in plain old savings account earning next to nothing (this was in 17 and 18). I sometimes thought I would slip them a note saying for 5% of their gain I could show them how to make thousands, ie move their money to Ally, etc. For many, this was all the money they had but I think internet banking scared them and they had no one (or didn’t trust) to guide them.

I never could get my dad to open an account at Ally (or anywhere online). He wanted to be able to drive to his bank and buy a CD from the nice guy at the desk. So, he'd buy a .5% CD when he could get 3% or 4% at an online bank. All of his money was at the local bank in CDs. I think a lot of older people are uncomfortable with their money being not being local.

 

[calmloki]

I never could get my dad to open an account at Ally (or anywhere online). He wanted to be able to drive to his bank and buy a CD from the nice guy at the desk. So, he'd buy a .5% CD when he could get 3% or 4% at an online bank. All of his money was at the local bank in CDs. I think a lot of older people are uncomfortable with their money being not being local.

Just so. My 75 YO BIL has hundreds of thousands making postage stamp money at a local bank because he likes the tellers there.

 

[disneysteve]

I never could get my dad to open an account at Ally (or anywhere online). He wanted to be able to drive to his bank and buy a CD from the nice guy at the desk. So, he'd buy a .5% CD when he could get 3% or 4% at an online bank. All of his money was at the local bank in CDs. I think a lot of older people are uncomfortable with their money being not being local.

I wonder if that dynamic is changing as those of us who grew up with technology become the old folks. My parents' generation didn't have computers and internet and smartphones until late in life, if at all. On the other hand, I started taking computer programming classes in 5th grade and we got our first mobile phones in 1992.


Even for our bricks and mortar bank checking account, we do 98% of our transactions on our phones or online, and everything else financial is 100% online. I don't think we will suddenly change to in-person banking 10 or 20 years from now.


Will the digital-native generation aging force physical banks to change their ways?

 

[braumeister]

Will the digital-native generation aging force physical banks to change their ways?

Eventually, as most things do change. But they still have their place for a great many people, so I don't see any big changes happening soon. Just like many of us here gravitate to Fidelity or Schwab largely because they have a B&M presence within a reasonable distance.

 

[JoeWras]

I wonder if that dynamic is changing as those of us who grew up with technology become the old folks. My parents' generation didn't have computers and internet and smartphones until late in life, if at all. On the other hand, I started taking computer programming classes in 5th grade and we got our first mobile phones in 1992.

Even for our bricks and mortar bank checking account, we do 98% of our transactions on our phones or online, and everything else financial is 100% online. I don't think we will suddenly change to in-person banking 10 or 20 years from now.

Will the digital-native generation aging force physical banks to change their ways?

I hope so. I'm specifically looking at credit unions. The two I belong to plow way too many profits into real estate -- something they are allowed to do as non-profits. They need to plow it back into rates.

And even though we older people are somewhat sophisiticated online, the kids are way beyond us. Example: I'm like the cranky guy who has to visit the bank personally when I think of money transfer apps. I don't like them. So when it comes to Venmo or Zelle, I say to the kids: "Nope. Not gonna do it sonny boy. Here's a $50 bill."

 

[disneysteve]

Eventually, as most things do change. But they still have their place for a great many people, so I don't see any big changes happening soon. Just like many of us here gravitate to Fidelity or Schwab largely because they have a B&M presence within a reasonable distance.

And how many of your Fidelity/Schwab transactions are done in person vs online? I have a Schwab account. I think the last time I was in a physical location was in the 90s when I opened the account. Otherwise it's been all online. The bulk of our money is with Vanguard. I have the need to call them on occasion but never has there been a situation that would have required me to be face to face with someone.