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

[disneysteve]

Don't know how long I have to wait for my canceled order's money to be usable again.
Maybe on Monday. Or maybe it isn't canceled at all.

Nothing typically happens outside of business hours so I'd certainly not expect anything before Monday at the earliest. Glad you were able to get in on the 4.95% offering. That's a good deal.

 

[NomDeER]

I grabbed some of that one myself. Even a touch better than the 4.90% I bought last week. I've got no problem locking in 3 years at nearly 5% at this point. And if the rates climb even higher, we've got stuff maturing monthly so we can still take advantage of that.

I bought all the 3-years I was looking for with that 4.90% from City National Bank. I don't feel too bad about missing out on the 4.95%. That .05% isn't a huge deal to me. I worry more about waiting for weeks or months for a higher yield that never comes and then all the best yields are gone. I'm perfectly happy with 4.9%. I will have a little more cash available for 3-years by early in 2023.

 

[disneysteve]

I bought all the 3-years I was looking for with that 4.90% from City National Bank. I don't feel too bad about missing out on the 4.95%. That .05% isn't a huge deal to me. I worry more about waiting for weeks or months for a higher yield that never comes and then all the best yields are gone. I'm perfectly happy with 4.9%. I will have a little more cash available for 3-years by early in 2023.

Agreed. I wasn’t waiting for higher but since it ticked up slightly and I had some more cash I used it. Our next T bill matures on 12/8 so I’ll grab something then.

 

[audreyh1]

According to Vanguard, if there is a Blue Sky limit on your state, the CD won't even show up as an option for you. They sometimes also list the restricted states.

https://personal.vanguard.com/us/content/Funds/FundsCertOfDepositOVContent.jsp

At Fidelity they are listed but with the SKY designation. Fortunately most CDs on the list don’t have it.

 

[Montecfo]

While the e-trade $2500 deal does sound attractive, if they don't have a settlement fund equal to Fidelity, there is some loss of potential money there.



$1,000,000 sitting in Fidelity 3.8% fund throws off $3166 per month!

Well, Fidelity has no monopoly on funds. Or any other short term investments.

Having said that I was not suggesting anyone use E-trade, but suggesting a way to get a nice payday from whatever brokerage someone chooses to move to.

 

[jazz4cash]

I have been wondering how the theory of lump sum vs DCA in stocks might apply also to bonds.



It is generally accepted that lump sum beats DCA in stocks.



By laddering or waiting for better rates, is it similar to trying to time the market in stocks by DCA?

You will frequently see the term laddering used when discussing bonds which is similar to DCA in my opinion. You wont get the very best rates but you won’t get the worst either. No one knows when stocks or bonds will peak but The Fed has indicated rates will go up. They can only adjust rates on the short end but there is a ripple effect and broad assumptions that medium and longer term rates will also be affected. Those assumptions are risky IMO but they have played out so far.

 

[Spock]

The main core funds are Fidelity Government Cash Reserves FDRXX and Fidelity Government Money Market SPAXX. These are both yielding around 3.3%. Then there is the Fidelity Premium Money Market fund FZDXX which is yielding around 3.8% and has a $10K initial minimum in an IRA. Other than that there are some more specialized/narrow funds such as treasuriy only etc.

I'm buying a house in early January 2023.
Is FZDXX a place that I can accumulate bonds maturing between now and the 1st week of January for a wire xfer to the title company?
Or would it be best to just let it set in the SPAXX core fund?

 

[audreyh1]

Either. The difference is 0.5%. Funds drawn from the Fidelity account will automatically pull from FZDXX after depleting SPAXX, so it’s very convenient. I guess there is no reason not to use FZDXX if you can meet the initial $100K minimum.

 

[Spock]

Either. The difference is 0.5%. Funds drawn from the Fidelity account will automatically pull from FZDXX after depleting SPAXX, so it’s very convenient. I guess there is no reason not to use FZDXX if you can meet the initial $100K minimum.

I'll meet the minimum going in.
Will be well below after transferring funds out to buy the house until more bonds/CDs mature.

 

[audreyh1]

No problem.

 

[John Galt III]

On Vanguard. The 3 year Bank of India New York 4.95 % CD's have gone for now. But there was a 2 year Bank of India New York CD for 4.90 % which I scooped up this morning. Non callable.

 

[NomDeER]

On Vanguard. The 3 year Bank of India New York 4.95 % CD's have gone for now. But there was a 2 year Bank of India New York CD for 4.90 % which I scooped up this morning. Non callable.

I obviously was wrong about more options being available on Monday. Vanguard has not really replenished the fixed income today. Even with the corporate bonds, there literally are no new issues available. I'm glad there were still some 2-years left for you. Were you able to successfully cancel that 4.3% CD order?

 

[disneysteve]

Today's news suggests that the Fed may continue to raise rates more aggressively than was previously thought. Maybe we haven't seen the peak quite yet. Just another factor supporting laddering of your fixed income investments. I was happy with my 4.9 and 4.95% CD purchases the past week or two but if the rates climb even higher, my maturing issues will let me keep buying more. I know a number of people have been holding out for 5%. It may be here soon (not that 4.9% is that big of a difference).

 

[Montecfo]

Today's news suggests that the Fed may continue to raise rates more aggressively than was previously thought. Maybe we haven't seen the peak quite yet. Just another factor supporting laddering of your fixed income investments. I was happy with my 4.9 and 4.95% CD purchases the past week or two but if the rates climb even higher, my maturing issues will let me keep buying more. I know a number of people have been holding out for 5%. It may be here soon (not that 4.9% is that big of a difference).

What news was that?

 

[disneysteve]

What news was that?

Here's one article about it:
https://www.whec.com/business/2-fed-officials-favor-keeping-key-rate-at-peak-through-2023/

 

[Montecfo]

Here's one article about it:
https://www.whec.com/business/2-fed-officials-favor-keeping-key-rate-at-peak-through-2023/

Ah, thanks for that DisneySteve.

Yes, I expect a hawkish Fed, which is why I said stocks will likely rally until the Fed speaks.

It is funny how equity markets are getting this wrong every single time. And the Fed has a credibility problem.

And I do hope they are believable enough that we get some nice rates on longer term CD's.

 

[TNBigfoot]

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

What FI investments are you in to yield 8% YTD? Higher risk corporates?

 

[Car-Guy]

Today's news suggests that the Fed may continue to raise rates more aggressively than was previously thought. Maybe we haven't seen the peak quite yet. Just another factor supporting laddering of your fixed income investments. I was happy with my 4.9 and 4.95% CD purchases the past week or two but if the rates climb even higher, my maturing issues will let me keep buying more. I know a number of people have been holding out for 5%. It may be here soon (not that 4.9% is that big of a difference).

I was out on the road much of the day so I missed this "news". Of course, it's what Jay Powell says in a couple of weeks that will really matter. The problem today isn't getting 4.8 to 4.9%, the problem as I see it, is getting those rates for longer than 2 years.

Even if Powell raises rates another 3/4 of a point in December, I think what will affect the longer terms (3 to 5 yr) rates is what he says about future increases for "next year" and beyond. IMO, there's just too much conflicting info on a day to day basis right now to "guess with any confidence". Maybe that's why CD laddering is a good thing, especially these days.. Guessing the top is going to be a real crap shoot, like always.

But I think I'm just stating the obvious.

 

[audreyh1]

Ah, thanks for that DisneySteve.

Yes, I expect a hawkish Fed, which is why I said stocks will likely rally until the Fed speaks.

It is funny how equity markets are getting this wrong every single time. And the Fed has a credibility problem.

And I do hope they are believable enough that we get some nice rates on longer term CD's.

I think it’s like animal spirits/wishful thinking - especially this time of year. The markets keep putting a positive spin on news and wishing and hoping and so they keep trying to rally.

 

[Drake3287]

Has anyone ever had luck with a bank waving the penalty fee on breaking/reinvesting a CD? I have a $100k CD at a local bank at 2.75% with 8 months remaining. They'll currently offering 4.75% for a 12 month CD now.

If I paid the 6 month penalty I'll be underwater around $100. bucks so it's currently not worth it for me. BUT, and this is a big but, if I offer to drop another $100k into this CD would they more likely to work with me? It's a smaller community bank so I guess you never know.

I plan to call and ask tomorrow. I guess all they can say is no.

* And before you jump all over me for maybe having to much cash tied up in CD's, I also have plenty of other non-cash investments.

 

[Montecfo]

I think it’s like animal spirits/wishful thinking - especially this time of year. The markets keep putting a positive spin on news and wishing and hoping and so they keep trying to rally.

It has been happening since what June? We have a market which does not believe the Fed.

 

[JoeWras]

It has been happening since what June? We have a market which does not believe the Fed.

Somewhat deserved as the Fed has recently been reactionary (quick rate drops) to impending slow downs, and obviously had their head in the sand regarding inflation ("transitory").

However, The Market also needs to take some blame. There's a lot of recency bias on their part. Consider The Market consists primarily of workers who have not experienced any sort of significant inflation in their life. What these younger workers have experienced are severe shocks like 2008, Covid, and perhaps tech crash or 9/11 attacks. So their bias is to a Fed that has a habit of dropping the floor out from under rates overnight.

I also think that people don't have an appreciation for the kind of stimulus thrown into the economy, and the effect of massive government spending. The Fed is monitoring this. And I hate to say it considering some of the nonsense we've seen from them, but The Fed may be the only adults in the room regarding these stimulative effects.

 

[Car-Guy]

What FI investments are you in to yield 8% YTD? Higher risk corporates?

I'm getting that in my ex-company managed 401k... Interest/income comes from things like a mix of employee loans, short term bonds and overnight loans. The management fee is almost nothing. Some years the yields were pretty low but in the ~40+ yrs I been using this investment option, it is has never lost any of my money... (so very low risk of loss of principal IMO)

 

[John Galt III]

I obviously was wrong about more options being available on Monday. Vanguard has not really replenished the fixed income today. Even with the corporate bonds, there literally are no new issues available. I'm glad there were still some 2-years left for you. Were you able to successfully cancel that 4.3% CD order?

Yes! Whereas on Sunday, one screen was saying it was 'canceled' and another screen was saying it was 'accepted', on Monday, it was showing as 'canceled' only. So it's all good. Thanks for asking.

 

[Chuckanut]

Picked a two year 4.85% CD of small amount. It’s only my second stretch past the 18 months max of my ladders. Still waiting for the Fed to speak in two weeks.