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

[disneysteve]

The big banks can keep their 0.5% interest and I will keep my money in higher yielding quality bonds and CDs.

Or even just online/brokerage money markets for 2+%.

 

[Gotadimple]

Clearly internet banks are responding to deposit outflow, many of them have increased savings yields up to 2% and will continue to do so. The regular banks like Chase and BofA have kept their savings rates super low for a very very long time.

Sometimes we forget that new deposits (savings) and making loans are why we have banks. You can't expect any bank to keep savings rates high and borrowing rates lower than savings rates, and still stay in business.

Brick and Mortar banks generally keep savings rates low because they have other streams of $$ they manage as fiduciaries that are more lucrative. To be called a commercial bank, they have to serve the public and they do that by offering checking and savings accounts. They don't care about offering competitive rates, they make their profits elsewhere.

Internet banks are also commercial banks. But, they are basically in the business of lending $. There is a risk-based ratio (convoluted math!) that bank auditors calculate to make sure the bank isn't lending more than its reserves, to prevent a bank failure (think Washington Mutual). That's the theory (that didn't work so well for WaMu).

Investopedia describes the reality of why big banks don't want your money: https://www.investopedia.com/articl...your-money-make-loans.asp#toc-the-bottom-line

All banks can make loans from deposits or they can borrow from other banks to make loans. For a small bank like an Internet banks, there is too much risk of losing profitability in borrowing from other banks, and they are willing to give up some profit on a loan to attract new deposits.

Same with credit unions. Some will argue that credit unions aren't as competitive as internet banks. That is true for all the same reasons big banks aren't as competitive.

- Rita

 

[ShokWaveRider]

I think it may be simpler than we all think. For the last few years money has been cheap, then we started printing it with gay abandon. The banks simply do not need our deposits as they are already flush with cheap cash, they are lining up to make a killing on it (Their cheap cash) as rates go up and loan qualification tightens.

 

[Car-Guy]

Penfed 5 and 7 year CD rates up slightly. Both went from 3.20 % to 3.25 %. They know I am waiting for 4.0 %, like everyone else.

Schwab just raised their 5yr to 3.9..... Pretty close to that magic 4.0. Still I think I'll wait until the end of the month or early Oct.

 

[Northforker]

JP MORGAN CHASE 4.000 SEMIANNUAL 09/23/2025 No 4.000 No 09/23/2022 1,715 SFP FDIC
SO 3 YR

cusip DSM9D6221

 

[audreyh1]

Not call protected, right?

 

[teej1985]

Sometimes we forget that new deposits (savings) and making loans are why we have banks. You can't expect any bank to keep savings rates high and borrowing rates lower than savings rates, and still stay in business.

Brick and Mortar banks generally keep savings rates low because they have other streams of $$ they manage as fiduciaries that are more lucrative. To be called a commercial bank, they have to serve the public and they do that by offering checking and savings accounts. They don't care about offering competitive rates, they make their profits elsewhere.

Internet banks are also commercial banks. But, they are basically in the business of lending $. There is a risk-based ratio (convoluted math!) that bank auditors calculate to make sure the bank isn't lending more than its reserves, to prevent a bank failure (think Washington Mutual). That's the theory (that didn't work so well for WaMu).

Investopedia describes the reality of why big banks don't want your money: https://www.investopedia.com/articl...your-money-make-loans.asp#toc-the-bottom-line

All banks can make loans from deposits or they can borrow from other banks to make loans. For a small bank like an Internet banks, there is too much risk of losing profitability in borrowing from other banks, and they are willing to give up some profit on a loan to attract new deposits.

Same with credit unions. Some will argue that credit unions aren't as competitive as internet banks. That is true for all the same reasons big banks aren't as competitive.

- Rita

Why do the big banks bother to do the signup bonuses with deposit requirements? I must have opened a Chase checking account for the bonus 7 or 8 times by now in my life, and a savings account maybe half those times.

 

[JoeWras]

I think it may be simpler than we all think. For the last few years money has been cheap, then we started printing it with gay abandon. The banks simply do not need our deposits as they are already flush with cheap cash, they are lining up to make a killing on it (Their cheap cash) as rates go up and loan qualification tightens.

+1

 

[explanade]

If I withdraw money from bank A to open a CD at bank B, does my withdrawal still count in the Savings outflow stats?

Or it should be net zero, since the same amount stays within the banking system.

 

[RetiredAndLovingIt]

4% 16 month CD available at Langley FCU. Membership open to all

https://www.depositaccounts.com/banks/langley-cu.html#promo49287

 

[Trailwalker]

4% 16 month CD available at Langley FCU. Membership open to all

https://www.depositaccounts.com/banks/langley-cu.html#promo49287

Interesting comment from someone at that link:

"Went through the application process and was denied. I called the customer support people and they said they were getting many fraudulent applications and she needed to get a manger. Held for a while and gave up. Treasuries are looking better and better with no hassle. Opening CDs at new institutions is really a hassle now."

I have to admit that the process for buying a Treasury is a lot simpler than trying to set up another financial institution account. I've been moving money from Marcus to Treasuries on a monthly basis building out a ladder.

 

[Gotadimple]

Interesting comment from someone at that link:

"Went through the application process and was denied. I called the customer support people and they said they were getting many fraudulent applications and she needed to get a manger. Held for a while and gave up. Treasuries are looking better and better with no hassle. Opening CDs at new institutions is really a hassle now."

I have to admit that the process for buying a Treasury is a lot simpler than trying to set up another financial institution account. I've been moving money from Marcus to Treasuries on a monthly basis building out a ladder.

This has been my experience as well for B&M banks. In my case, there were many many steps delaying the purchase. It turns out, that the bank was under an order from the Comptroller of the Currency to clean up their act and verify the depositor was legitimate.

Moved money over to an Internet Bank that did that verification up front one time. Have set up several other purchases with them and didn't have to go through verification after the first time.

- Rita

 

[Gotadimple]

American Express Bank announces an increase in interest rates for their High Yield Account to 1.95% effective 9/15 - up from 1.75% announced 2 weeks ago.

 

[audreyh1]

Everyone sees the Fed writing on the wall for 9/21.

 

[Car-Guy]

^^^^^


3/4 or 1 ?

 

[target2019]

^^^

1

 

[JoeWras]

The best thing about the bible phrase "Writing on the Wall" is that it wasn't clear what was written, just that something was written. It was up to interpretation.

That's exactly what's happening here. We know something is going to happen, but exactly what will the number be?

 

[audreyh1]

^^^^^


3/4 or 1 ?

I’ve been assuming 0.75%, but who knows?

 

[Car-Guy]

I’ve been assuming 0.75%, but who knows?

Most everybody has an opinion, except Jay Powell. He'll flip a coin next week on the way to the podium.

 

[jazz4cash]

Most everybody has an opinion, except Jay Powell. He'll flip a coin next week on the way to the podium.

So what’s on each side of the coin? I guess one side is .75 but how about the other side?

 

[Car-Guy]

So what’s on each side of the coin? I guess one side is .75 but how about the other side?

I'd guess 1 but now we are back to "who knows".

 

[xlf11]

CIBC Agility Saving is now 2.32%

 

[aja8888]

Most everybody has an opinion, except Jay Powell. He'll flip a coin next week on the way to the podium.

He will interpret the dot plot and come up with a consensus.

 

[ShokWaveRider]

^^^^^


3/4 or 1 ?

Do I see a Poll coming?

 

[Dtail]

Do I see a Poll coming?

0.75