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

[Out of Steam]

Wow, they are still pulling that trick? I know they aren’t the only ones. I think it was a common practice at CIT bank, for example.

I'm not the first to notice this here.

https://www.early-retirement.org/fo...-post-updates-here-112376-57.html#post2809316

 

[audreyh1]

Some institutions were pulling that trick back in 2018/2019. Fortunately none of mine.

 

[pletal]

Slow going for sure. Got 3.5% on a 5 yr at Charles Schwab on June 28th.
3.4% on a 3 & 4 year at the same time.
I kind of suspected it would go like this. Also any hint of continued recession
and will see an immediate fed U-turn. More personal CD $$ available Jan & Feb 2023. Will see what things look like then. Hoping for 4%... Past 5 years my average has been 3.4%. So anything over that is a bonus. My frothy ret. plan is based on a 3% return. Actual plan based on a zero % return, but with ZERO losses.
Super constitutive over here.

My retirement plan is base on 2.6% return. As you say anything above is a bonus. Don't believe rates will go as high as we would like

 

[copyright1997reloaded]

My retirement plan is base on 2.6% return. As you say anything above is a bonus. Don't believe rates will go as high as we would like

How does your retirement plan do with 8% inflation an a 2.6% NOMINAL return = 5.4% negative real return? (Even worse after tax considerations.)


Rates have to go up, or inflation needs to come down, or both. Otherwise, a lot of retirement plans are in serious trouble.

 

[scfr]

The NASA FCU 9-mo "CD" (Share Certificate) at 3.55% APY is still the best for us for less than 1 year.

 

[audreyh1]

Wow - that's pretty sweet! Unfortunately I'm not willing to take on another FCU.

 

[Car-Guy]

Schwab's updated brokered CD rates as of tonight.

Maturity-1 Mo- 3 Mo- 6 Mo - 9 Mo- 1 Yr - 18 Mo -2 Yr -3 Yr -4 Yr - 5 Yr
APY(%) 2.376 2.881 3.226 3.263 3.400 3.400 3.500 3.550 3.600 3.600

Actually, pretty small spread between 6mos and 5yrs

 

[pletal]

How does your retirement plan do with 8% inflation an a 2.6% NOMINAL return = 5.4% negative real return? (Even worse after tax considerations.)


Rates have to go up, or inflation needs to come down, or both. Otherwise, a lot of retirement plans are in serious trouble.

I hope rates go up. I don’t have anybody to leave the money once we are gone. Hopefully inflation calms down. Yes with this ongoing trend many could be in trouble. Been saving for over 40 years. If inflation stays above 6 percent for a long period, all bets are off for many of us.

 

[aja8888]

Schwab's updated brokered CD rates as of tonight.

Maturity-1 Mo- 3 Mo- 6 Mo - 9 Mo- 1 Yr - 18 Mo -2 Yr -3 Yr -4 Yr - 5 Yr
APY(%) 2.376 2.881 3.226 3.263 3.400 3.400 3.500 3.550 3.600 3.600

Actually, pretty small spread between 6mos and 5yrs

6 month looks like the best deal.

 

[audreyh1]

I noticed today that Ally Bank was offering a 3.5% APY 2 YR brokered CD via Fidelity.

Of course that’s far higher than what is being offered to retail customers directly which sometimes happens.

 

[explanade]

Wow - that's pretty sweet! Unfortunately I'm not willing to take on another FCU.

Why, something about FCUs?

 

[audreyh1]

I just really don’t open new accounts anymore, and FCUs are a little more trouble compared to banks. But I don’t open new bank accounts either.

 

[John Galt III]

Hearing more and more talk about Fed raising rates 0.75 % Sept 20-21, 2022. I'm waiting patiently for 4% CD at Penfed. Might even bite at 3.5 % for a 5 year CD. Cmon Penfed, don't make me join yet another credit union!

 

[Momcpa]

2 local credit unions have nice rates right now. One is a 15 month special at 3%. I'll take it. The other has an on-going 24 month "bump-up" one. At first it was 2.5% with a one-time bump up option. Then it went to 2.81% with the bump-up option. Now it's 2.96% with a bump-up. I just added 2 of those this week to my CD ladder. (I thought it was still at the 2.81%, but the clerk said it had been increased to 2.96%) Our banks don't seem to have anything close to these two.

 

[ShokWaveRider]

How does your retirement plan do with 8% inflation an a 2.6% NOMINAL return = 5.4% negative real return? (Even worse after tax considerations.)

People insist on posting this rationale. For us it is not the case. Posted Inflation % is a relative number and honestly it does NOT apply to us. Our inflation rate is far different. Refer to the posts on 'Personal Inflation Rates". They are different for everyone.

We certainly do not consume like we used to or like most of the US population does. The things that affect us directly are:

Food (Biggest Weighting)
Utilities (Next Biggest Weighting)
Insurance
Auto Fuel (But not lot)
House Taxes
Dining Out (Very Low)
Medicare
HOA Fees (Actually went down for 2022 vs 2021)

All else are really just noise. I measure out inflation rate over the last 1 year to date, from the previous year. So the difference in expenditures from the previous 12 months vs current 12 months.

Currently our personal inflation rate as of Aug. 2020 to Aug. 2021 vs Aug. 2021. - Aug. 2022 is: ~2% (Not 8.5%)

Our return rate is ~4% so we are OK.

I do not count Medicare,

 

[mrfeh]

2 local credit unions have nice rates right now. One is a 15 month special at 3%. I'll take it. The other has an on-going 24 month "bump-up" one. At first it was 2.5% with a one-time bump up option. Then it went to 2.81% with the bump-up option. Now it's 2.96% with a bump-up. I just added 2 of those this week to my CD ladder. (I thought it was still at the 2.81%, but the clerk said it had been increased to 2.96%) Our banks don't seem to have anything close to these two.

6 month and 12 month treasuries are over 3%, so I don't see the appeal of these CDs.

 

[ShokWaveRider]

Wait. Wait. Wait. Our Cashish is on hiatus till the last hike of this year. Money enjoying a vacation getting 2.37% in Schwab. Good enough for now.

 

[copyright1997reloaded]

People insist on post this rationale. For us it is not the case. Posted Inflation % is a relative number and honestly it does NOT apply to us. Our inflation rate is far different. Refer to the posts on 'Personal Inflation Rates". They are different for everyone.

We certainly do not consume like we used to or like most of the US population does. The things that affect us directly are:

Food (Biggest Weighting)
Utilities (Next Biggest Weighting)
Insurance
Auto Fuel (But not lot)
House Taxes
Dining Out (Very Low)
Medicare
HOA Fees (Actually went down for 2022 vs 2021)

All else are really just noise. I measure out inflation rate over the last 1 year to date, from the previous year. So the difference in expenditures from the previous 12 months vs current 12 months.

Currently our personal inflation rate as of Aug. 2020 to Aug. 2021 vs Aug. 2021. - Aug. 2022 is: ~2% (Not 8.5%)

Our return rate is ~4% so we are OK.

I do not count Medicare,

Rising costs work their way through the economic system. It doesn't happen all at once, but it will happen.

Food WILL go up if there is inflation in input costs - fuel for tractors, fuel for production of fertilizers, cost of machinery, land cost, and so on. Just picking that as an example, but just about anything you do or use will eventually be affected.

I'm enjoying chasing the rates higher as much as anyone, and getting 3% on a six month T-bill is better than getting 0.25%. But we need to be careful in fooling ourselves - if rates of return lag overall inflation rates for a long period of time, our SWR assumptions/results start going out the window.

 

[Chuckanut]

I want at least 6% for five years. I see no reason for less until the Federal government shows some level of fiscal restraint.

 

[Car-Guy]

I want at least 6% for five years. I see no reason for less until the Federal government shows some level of fiscal restraint.

Good luck with that!

 

[RetiredAndLovingIt]

Lewis Clark Credit Union (ID/WA) 37-Month CD Special Breaks 4% Ceiling at 4.5% APY

https://www.depositaccounts.com/banks/lewis-clark-cu/offers/

 

[Tadpole]

Question, if anyone knows the answer. If I take out a CD for seven years and I die in year 4, can the beneficiary withdraw the money and interest from the CD without penalty?

 

[disneysteve]

Question, if anyone knows the answer. If I take out a CD for seven years and I die in year 4, can the beneficiary withdraw the money and interest from the CD without penalty?

Most banks waive the early withdrawal penalty upon death but if that’s important to your situation, you should verify that before buying the CD.

 

[RetiredAndLovingIt]

My beneficiaries are listed as POD Payable On Death at my credit unions and I think my banks as well. I agree you should ask the question of the institution for verification.

https://www.investopedia.com/terms/p/payableondeath.asp

The next question becomes what if it's a good rate and the beneficiary would rather let the money ride to the end of the term and I don't know the answer to that.

 

[Tadpole]

Thanks, disneysteve and RetiredAndLovingIt. I was just thinking that even though I am 73, I probably won't need the money myself so why, if I put it in a CD, should I let the length of time of the CD effect the ones I purchase. The only downside might be heavy penalties for beneficiaries. (All my accounts currently list my estate as the beneficiary, so the executor needs flexibility.) I will follow your advice and ask about the bank's policies.