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

[Sunset]

MJ - I don't know a site to calculate CD vs Treasury with tax implications, but I was searching for the same info and found this on Zack's site:
To compare the interest rate from a CD with the rate from a Treasury bond and see if US Treasury bond prices and yields are a good deal, calculate the state-taxable-equivalent yield of the Treasury bond. The equivalent yield is determined by dividing the Treasury bond yield by one minus your marginal tax rate. As an example, say your state income tax rate is 8 percent and the Treasury bond you are looking at yields 3 percent. One minus 8 percent – 1 minus 0.08 in decimal form – gives 0.92. Divide the 3 percent by 0.92 to get a taxable equivalent yield of 3.26 percent. A CD must yield more than 3.26 percent to be a better deal than the Treasury bond.

I have a simple way. Since IL State tax is 5% .
For every 1% of a treasury , I just add 0.05

So a 4% treasury pays the same after State tax in IL as a 4 + (4x 0.05) or
4 + 0.05+ 0.05 + 0.05 + 0.05 = 4.20%
It's close enough and quick.

There is an added benefit, that Treasuries don't increase Fed taxes like a CD would, as that could make the difference in various other taxes being applied, or going into another tax bracket.

 

[audreyh1]

7-Month Inflation Buster Share Certificate Special Offer

Rate 4.91% APR 5.00%

"1Offered rate is accurate as of 11/04/22 and will be available through 12/02/2022. Minimum of $1,000 to open and maintain the account; account must be opened with new money (i.e., money not already on deposit at Andrews Federal Credit Union). Minimum of $1,000 to earn the advertised APY. Maximum balance allowed is $100,000. Penalties apply for early withdrawal. Fees may reduce earnings on the account. The credit union reserves the right to change offered rates at any time. Limit of 1 (one) 7-month Inflation Buster. Special Share Certificate per membership. At maturity, all 7-Month Inflation Buster Special Share Certificates will automatically renew at the 12-Month share certificate rate and term."

https://www.andrewsfcu.org/Learn/Resources/Rates/Share-Certificate-Rates

Their new money requirement is a bit vague as they say it can’t be money already on deposit at Andrews (without a date) but I usually fund my CDs there by pushing the funds to my savings there then opening the CD. It’s much more difficult to fund the CD otherwise.

 

[jim584672]

Their new money requirement is a bit vague as they say it can’t be money already on deposit at Andrews (without a date) but I usually fund my CDs there by pushing the funds to my savings there then opening the CD. It’s much more difficult to fund the CD otherwise.

I emailed them for more info, it has a 90 day early withdrawal penalty and pays quarterly.

 

[audreyh1]

I emailed them for more info, it has a 90 day early withdrawal penalty and pays quarterly.

What do they consider new money? If I transfer funds to my savings account and then open the CD, will they allow that because they consider that new money? Or do they require the CD to be funded directly from outside funds?

The problem is their language “new money not already on deposit at Andrews”.

 

[cbo111]

Has anyone seen a bump in CD rates since the latest Fed .75 increase? Vanguard brokered CD rates don't seem to have changed at all.

 

[audreyh1]

Has anyone seen a bump in CD rates since the latest Fed .75 increase? Vanguard brokered CD rates don't seem to have changed at all.

There is usually a delay and a gradual ramp up.

 

[Car-Guy]

Has anyone seen a bump in CD rates since the latest Fed .75 increase? Vanguard brokered CD rates don't seem to have changed at all.

Seems to lag a few weeks usually... Maybe by the end of the month, if not sooner. The wild card (from my POV) are the elections today.

 

[Dash man]

Just bought a 4.9% noncallable 18-month CD at Schwab, from Customer's Bank in PA: CUSIP 23204HMC9.

 

[disneysteve]

I just saw that the Vanguard Settlement Fund VMFXX has a 7-day yield of 3.34%. I think it was 2.7% the last time I looked not that long ago. Even money sitting on the "sidelines" waiting to be invested is doing pretty well for a change.

 

[audreyh1]

Yeah, FZDXX reached 3.5% this morning, and the core funds are both above 3%.

 

[Mark1]

Thanks! I keep buying these Capital One 5 yr CDs as they rise.

Question: if I buy $250k in Vanguard and another $250k in Fidelity, am I covered under FDIC protection or not? It is the same bank but under 2 different brokerages?

Does anyone know?

I have noticed in the recent past (~ month ago) that Cap One has two slightly different banks names available with identical rates (i.e, Cap One N/A and Cap One USA). I'm assuming this is too allow for $250,000 at each bank while maintaining FDIC insurance, though I'm not sure.

 

[RetireBy90]

Just noticed Apple Credit Union has 4% on some short term CDs of 5, 9, and 18 months

 

[disneysteve]

Ally is up to 2.75%.

 

[Dash man]

Synchrony Bank is up to 3.00%

 

[braumeister]

Discover Bank is 2.75 but I get 2.80 because I opened the account as an AAII member. Kind of amazing that this seems puny now, when it would have been wonderful a year or two ago.

 

[Montecfo]

CFG bank now at 3.7%.

Higher than just about all other institutions.

 

[njhowie]

Marcus 3.00%

 

[money4wells]

I got a 3-month brokered non-callable CD at 4.15% at Fidelity yesterday. I don't see it there today though.

 

[MBSC]

Yeah, FZDXX reached 3.5% this morning, and the core funds are both above 3%.

The 1-day yield on FZDXX is 3.77%. The 7-day yield is still trying to catch up.

https://institutional.fidelity.com/app/fund/sasid/details/2738.html

 

[njhowie]

Just purchased secondary market 18-month non-callable 5.24%

 

[audreyh1]

Ally is up to 2.75%.

American Express Bank just matched them.

 

[audreyh1]

7-Month Inflation Buster Share Certificate Special Offer

Rate 4.91% APR 5.00%

"1Offered rate is accurate as of 11/04/22 and will be available through 12/02/2022. Minimum of $1,000 to open and maintain the account; account must be opened with new money (i.e., money not already on deposit at Andrews Federal Credit Union). Minimum of $1,000 to earn the advertised APY. Maximum balance allowed is $100,000. Penalties apply for early withdrawal. Fees may reduce earnings on the account. The credit union reserves the right to change offered rates at any time. Limit of 1 (one) 7-month Inflation Buster. Special Share Certificate per membership. At maturity, all 7-Month Inflation Buster Special Share Certificates will automatically renew at the 12-Month share certificate rate and term."

https://www.andrewsfcu.org/Learn/Resources/Rates/Share-Certificate-Rates

Their new money requirement is a bit vague as they say it can’t be money already on deposit at Andrews (without a date) but I usually fund my CDs there by pushing the funds to my savings there then opening the CD. It’s much more difficult to fund the CD otherwise.

I emailed them for more info, it has a 90 day early withdrawal penalty and pays quarterly.

What do they consider new money? If I transfer funds to my savings account and then open the CD, will they allow that because they consider that new money? Or do they require the CD to be funded directly from outside funds?

The problem is their language “new money not already on deposit at Andrews”.

OK - I called them and talked to a customer care person about this new money requirement. They expect you to either make an in person deposit, transfer from an external account (directly to the CD), or mail in a check as "new money".

Unfortunately there are limits on transfers from external accounts. According to their share certificate info, for amounts above $50,000 you pretty much have to mail in a check or arrange for a wire transfer. https://www.andrewsfcu.org/Support/How-to-Fund-Your-Share-Certificate

So apparently I am going to mail them a check this time. A bit of a hassle.

When you open the share certificate you say how you are going to fund the share certificate, then you have some time to arrange the funding.

 

[jim584672]

Usually with credit unions you can push or pull ACH initiated from the outside bank to get around the transfer limits.

 

[Dave J]

OK - I called them and talked to a customer care person about this new money requirement. They expect you to either make an in person deposit, transfer from an external account (directly to the CD), or mail in a check as "new money".

Unfortunately there are limits on transfers from external accounts. According to their share certificate info, for amounts above $50,000 you pretty much have to mail in a check or arrange for a wire transfer. https://www.andrewsfcu.org/Support/How-to-Fund-Your-Share-Certificate

So apparently I am going to mail them a check this time. A bit of a hassle.

When you open the share certificate you say how you are going to fund the share certificate, then you have some time to arrange the funding.

With all the trouble I and other had back in 2016 opening an IRA and funding it to get the 3% 7 yr CD, I decided I would never give them more business. When my CD matures in 2023, I am taking my money elsewhere and closing my account.

 

[Gotadimple]

American Express Bank just matched them.

American Express also bumped their CD rates .60% for 12/24/60 months to 3.85%/4.00%/4.10% effective 11/9