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

[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.

Called today and the bank was all for it until they contacted the head office for approval. Turns out it's not allowed due to federal banking regulations. I was that close! So much for getting out of penalties.

 

[erkevin]

Called today and the bank was all for it until they contacted the head office for approval. Turns out it's not allowed due to federal banking regulations. I was that close! So much for getting out of penalties.

I hope that you are still going to do it; you will recoup that $100 in under 30 days

 

[jazz4cash]

Called today and the bank was all for it until they contacted the head office for approval. Turns out it's not allowed due to federal banking regulations. I was that close! So much for getting out of penalties.

I don't buy that. Could be true but doesn't sound right to me. I did a google search and found some results from 10 yrs ago claiming the bank can waive the penalty but it may affect their reserve requirements so they may not be willing to make an exception. Some credit unions did make exceptions when COVID hit. Early withdrawal penalties are mandated by Federal Regulation but the amount and the ability to grant waivers seems to be very fluid. One source reports the minimum penalty is 7 days of interest so maybe you could ask for a reduction of the penalty. Here is a recent quote from Investopedia:

"Ask for a Waiver
If you're already in a CD and need to withdraw your money early, ask your bank or credit union if it will waive the fees. That may seem like a crazy idea—and it might turn out to be if your CD is with a big corporate bank. But if it's with a smaller institution, where they know you, they might let you off the hook.

According to the Consumer Financial Protection Bureau (CFPB), some financial institutions will also agree in advance to waive any penalty once you have had the CD for a certain period of time."

https://www.investopedia.com/cd-early-withdrawal-penalty-5225111

 

[WannabeRetired]

Nine years ago I was able to get a credit union to drop their 180-day interest penalty to 90. The branch manager was able to just do it on their computer. There didn't appear to be any additional approvals needed.

 

[yooper66]

Ask if you can withdraw all the interest paid to date without penalty. The penalty should be on the withdrawal of the initial principal.

 

[Drake3287]

I hope that you are still going to do it; you will recoup that $100 in under 30 days

Nope, pulling out with 8 months to go on a 2.75% CD ($100k) with a 6 month penalty and a new rate of 4.75%, it'll cost me $109.00 in the long run when all said and done. It would take a new rate of at least 5% to make it work. Might happen by next month though.

Another possibility is opening a second CD at the higher rate. I've just never had over $200k in any one bank.

 

[ShokWaveRider]

Schwab rep told me MYGAs offered by them will reset lower tomorrow.

 

[erkevin]

A 3-year, non-callable, brokered CD popped back up: Sallie Mae Bank CUSIP 795451CL5 @ 4.9%

 

[Montecfo]

A 3-year, non-callable, brokered CD popped back up: Sallie Mae Bank CUSIP 795451CL5 @ 4.9%

yes. Not seeing much that is better.

 

[kongmen]

19 month 4.75% CD at Synchrony till I believe the 1st week in December.


Edit: November 28 through December 4

 

[erkevin]

And *POOF*, the sallie mae 3-year @ 4.9% is gone....... (2-year is still available)

 

[Car-Guy]

^^^^

Same at Schwab... Several new issue 2yr at 4.9% but after that they drop to 4.5% at 3yr and nothing available longer than that.

Things may start to change (for good or bad) after Jay Powell talks today. It may take a few days to a week to see if what he says will have any affect... And they'll change again once they actually adjust rates in mid December.

 

[erkevin]

Really hoping for some significant offers at 3-5 years-duration. I've been playing the game; lots of short-term CDs maturing in the coming year and they need a longer-duration home.......hopefully at 5%+

 

[Car-Guy]

Really hoping for some significant offers at 3-5 years-duration. I've been playing the game; lots of short-term CDs maturing in the coming year and they need a longer-duration home.......hopefully at 5%+

You and about half (well several anyway) of the folks on this site are playing the same game (including me). I've got 1/2m that will mature in March 2023 and a bunch more spread out from then into early 2024. I bought more than I had originally planned but that's ok. Next round I "hope" to buy 2 to 3 year maturities. 5+ years is just too dang long for me to invest in anything anymore. I'd like to be here to collect.

 

[ER604me]

At TDA I'm seeing a 4yr non-callable CD with Discover Bank with price of 100.600 and YTW/YTM of 4.683. What are people's opinion of locking up money for 4 years at that rate? It seems pretty good on surface.

 

[ShokWaveRider]

I am still holding out for a 4 year 5%. When I get that I will put $250k into it. I currently have a good 5 year. I will then do the same with 3 and 2 year and maybe 1 year if the rates are favorable. I am/will be happy with 5% going forward.

 

[copyright1997reloaded]

And *POOF*, the sallie mae 3-year @ 4.9% is gone....... (2-year is still available)

Still show available at TD Ameritrade, not in inventory at Fido.
I was going to pick up some 4-week, 8-week T-Bills in an IRA there, but just switched to pick up some of this 3-year CD.

ETA: Filled.

 

[NomDeER]

And *POOF*, the sallie mae 3-year @ 4.9% is gone....... (2-year is still available)

Still some available at Vanguard, but won't last long. Also a two-year CD at 4.9% from Manufacturers & Traders Tr Co.

Really hoping for some significant offers at 3-5 years-duration. I've been playing the game; lots of short-term CDs maturing in the coming year and they need a longer-duration home.......hopefully at 5%+

There have been some fairly good 3-years popping up this past week.
Unfortunately, I'm looking for longer CDs and there has been nothing good available this week. I was filling up on shorter term CDs first. I probably should have done it the other way around.

 

[copyright1997reloaded]

Still show available at TD Ameritrade, not in inventory at Fido.
I was going to pick up some 4-week, 8-week T-Bills in an IRA there, but just switched to pick up some of this 3-year CD.

ETA: Filled.

Just checked Ameritrade and it is no longer available (CUSIP search returns nothing).

 

[wolf]

Stay calm. IMHO. 5% or more will be common next year.

 

[cbo111]

Stay calm. IMHO. 5% or more will be common next year.

Or we will enter a recession and the Fed will slash rates. Who knows.

 

[John Galt III]

Stay calm. IMHO. 5% or more will be common next year.

Yes! I like that thought!

 

[Car-Guy]

Stay calm. IMHO. 5% or more will be common next year.

I suspect that's probably true... Not sure how happy we should be about that unless inflation drops nearer 5% too. But beats the heck out of what we were getting a ~year ago.

 

[Montecfo]

On Powell's comments today, treasury yields mostly fell.

Given that, I remain concerned that we may have already seen the highest rates on the 5yr plus maturities.

Barron's today called the rate inversion the greatest recession signal in 40 years.

 

[Car-Guy]

On Powell's comments today, treasury yields mostly fell.

Given that, I remain concerned that we may have already seen the highest rates on the 5yr plus maturities.

I think that may be true too... But I do think we still have more upside on 1, 2 and "maybe" even 3yr maturities.