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

[Car-Guy]

How agressively do people around here move money from one account to another chasing yield (if you already have accounts open)?

Do people ignore this noise or regularly move funds back and forth chasing the highest yield? Thanks!

Between accounts no, within an account yes.

 

[Chuckanut]

The best rate I could find at Vanguard for a minimum 3 year non-callable CD is 4.5%. I see a few banks offering around 4.6%. So it would seem that brokered CDs are not paying a premium over bank CDs unless you go with callable ones, but then there is no guarantee how long you will receive that interest rate. Am I missing something?

Alas, I can't find that in my area. Ally bank is paying 4% on a one year CD.
Here is where one of the better local banks in my area is at. Read it and weep.

13-Month CD Special*

$1,000 - $500,000
With Eligible† Checking:
Interest Rate/Annual Percentage Yield
2.96%/3.00%



Without Eligible† Checking:
Interest Rate/Annual Percentage Yield
2.86%/2.90%

High Yield Money Market***

• $1,000 - $14,999
• 0.99% Interest Rate
• 1.00% Annual Percentage Yield

• $15,000 - $89,999
• 1.24% Interest Rate
• 1.25% Annual Percentage Yield

• $90,000 - Plus
• 1.49% Interest Rate
• 1.50% Annual Percentage Yield

High Yield? Sure. No doubt about it.

 

[Fermion]

Wells Fargo "high yield" saving account was paying 0.02% last time I checked.

 

[ShokWaveRider]

My Schwab MM is paying 3.95% as of today. I am looking for and over 5 to 6% FDIC Insured CD That is not over 4 years. I will make a decision after The FED decision next week.

 

[wdwwildbill]

My Schwab MM is paying 3.95% as of today. I am looking for and over 5 to 6% FDIC Insured CD That is not over 4 years. I will make a decision after The FED decision next week.

Could you tell me what Schwab mm that is. I did to hold some cash at TD in something besides trading account ( making nothing ) is there a minium ?
Thanks

 

[lawman]

My Schwab MM is paying 3.95% as of today. I am looking for and over 5 to 6% FDIC Insured CD That is not over 4 years. I will make a decision after The FED decision next week.

You can get that now on Government Agencies. Are you concerned a those might default?

 

[ShokWaveRider]

Could you tell me what Schwab mm that is. I did to hold some cash at TD in something besides trading account ( making nothing ) is there a minium ?
Thanks

There are 2.

SWVXX - 3.8% No minimum
SNAXX - 3.95% $1m minimum Initial Investment - Once the initial payment is made it can be reduced without losing the premium interest rate.

 

[kongmen]

I'm also interested in finding somewhere to put my money while waiting to invest at Ameritrade. Swab is acquiring Ameritrade so does anyone know it we Ameritrade customers have access to these mm accounts now?


I guess I really don't understand how this works: is SWVXX a liquid savings account at Ameritrade/shwab or a mutual fund that has to be bought and sold on the open market?



Thanks for any replies.

 

[Drake3287]

I'll never understand how these mega-banks can get away with offering less than 1% on CD's and of course even less on Savings accounts. Apparently they have no interest or need in having new cash deposited.

In the mean time, our local brick and mortar bank (Summit State Bank) is offering 4.75% for a 12 month CD. It'll be interesting to see if it hit's the coveted 5% next month when the Feds raise the rates again.

 

[Gotadimple]

I'll never understand how these mega-banks can get away with offering less than 1% on CD's and of course even less on Savings accounts. Apparently they have no interest or need in having new cash deposited.

Because the majority of accounts at a mega-bank are commercial accounts and there is a lot income in those fees. In addition, they are required to serve the community, so that's what they are doing. Providing low yield on personal accounts, requiring high account minimums to avoid an even higher monthly account fee, and then acting surprised when you tell them you have the majority of your savings in a high yield account at an internet bank.

- Rita

 

[wdwwildbill]

There are 2.

SWVXX - 3.8% No minimum
SNAXX - 3.95% $1m minimum Initial Investment - Once the initial payment is made it can be reduced without losing the premium interest rate.

Thank You !!!

 

[lordjust]

Thank You !!!

The payments from the monthly MM have been nice. Just in case anyone needs to be assured.

 

[PatrickA5]

I have been cluing my acquaintances (seniors) in to the decent interest rates in CDs these days, and they listen politely, but I think they just don't want the bother of changing anything in their portfolio. They have all the money they need, forever (knock on wood) and do not want to be bothered making these kinds of decisions. I think we are a rare breed of seniors who manage our own portfolios and dare to go bargain hunting now and then.

I tried to get my dad to open an online account for years. At that point, he was renewing his local CDs at .5% interest when he could have gotten 10 times that amount at online banks. I offered to do everything. He just wouldn't trust any bank that he couldn't walk into.

 

[audreyh1]

How agressively do people around here move money from one account to another chasing yield (if you already have accounts open)?

I have brokerage accounts at Fidelity, Schwab and Vanguard. I own money market funds with cash at all three places. Vanguard had been lagging the last few weeks with Fidelity leading (two weeks ago it was like 3.66% vs. 3.55%). Last week Schwab's MM fund went up to about 3.80% and Vanguard was still only 3.61%. I was planning on moving money today but see that now it is Schwab/Vanguard/Fidelity with 7 day yields of 3.805/3.71/3.69%.

It is very easy to move money between the three accounts and funds can probably be in the new account earning interest in 1-3 days but I'm starting to think it isn't worth the effort if yields keep bouncing back and forth with one fund beating another one week to the next.

It certainly would be worth the effort to get 12 basis points to have my cash sitting at Schwab vs. Fidelity if that disparity stayed for a period of time. I just don't know if next week due to a few holdings maturing at Fidelity and then they will be the rate leader.

Do people ignore this noise or regularly move funds back and forth chasing the highest yield? Thanks!

Not very aggressively as many catch up with one another over shortish periods of time. Over a few years, a while ago now, I opened up accounts at 3 online banks and a couple of credit unions for higher savings rates and CDs. I also have Fidelity MM funds. It tends to be gradual and I just move larger funds occasionally usually for CD specials or some short-term bonus offered. Pretty much just a few mouse clicks. I haven’t opened up a new financial account in a very long time, and don’t plan to anymore as it’s not worth the hassle and added tracking/statements to me.

You simply have to calculate the actual $ gain see if a small basis difference is worth it to you.

 

[lordjust]

I tried to get my dad to open an online account for years. At that point, he was renewing his local CDs at .5% interest when he could have gotten 10 times that amount at online banks. I offered to do everything. He just wouldn't trust any bank that he couldn't walk into.

You’re not alone. It’s very frustrating

 

[PatrickA5]

How agressively do people around here move money from one account to another chasing yield (if you already have accounts open)?

I have brokerage accounts at Fidelity, Schwab and Vanguard. I own money market funds with cash at all three places. Vanguard had been lagging the last few weeks with Fidelity leading (two weeks ago it was like 3.66% vs. 3.55%). Last week Schwab's MM fund went up to about 3.80% and Vanguard was still only 3.61%. I was planning on moving money today but see that now it is Schwab/Vanguard/Fidelity with 7 day yields of 3.805/3.71/3.69%.

It is very easy to move money between the three accounts and funds can probably be in the new account earning interest in 1-3 days but I'm starting to think it isn't worth the effort if yields keep bouncing back and forth with one fund beating another one week to the next.

It certainly would be worth the effort to get 12 basis points to have my cash sitting at Schwab vs. Fidelity if that disparity stayed for a period of time. I just don't know if next week due to a few holdings maturing at Fidelity and then they will be the rate leader.

Do people ignore this noise or regularly move funds back and forth chasing the highest yield? Thanks!

I might occasionally go after a sign up bonus by opening a new account, but I don't move money around chasing money market fund rates between the big three. I think my Fidelity FZDXX will be approaching 4.3% within a week or two of the next fed meeting.

 

[lordjust]

Not very aggressively as many catch up with one another over shortish periods of time. Over a few years, a while ago now, I opened up accounts at 3 online banks and a couple of credit unions for higher savings rates and CDs. I also have Fidelity MM funds. It tends to be gradual and I just move larger funds occasionally usually for CD specials or some short-term bonus offered. Pretty much just a few mouse clicks. I haven’t opened up a new financial account in a very long time, and don’t plan to anymore as it’s not worth the hassle and added tracking/statements to me.

You simply have to calculate the actual $ gain see if a small basis difference is worth it to you.

I had a few that I would open chasing yields but after a couple of them changed names (urls?) I got tired of trying to track things. Also I thought about the security implications. These were the smaller online banks obviously .

 

[Car-Guy]

The payments from the monthly MM have been nice. Just in case anyone needs to be assured.

Not that it really matters much, but at Schwab, money fund payments are made on the 15th of each month (or the 1st bus day after that) except in December when they are made on the last business day of the month.

Just so you (and others) aren't surprised by a later payment in December.

 

[pb4uski]

The best rate I could find at Vanguard for a minimum 3 year non-callable CD is 4.5%. I see a few banks offering around 4.6%. So it would seem that brokered CDs are not paying a premium over bank CDs unless you go with callable ones, but then there is no guarantee how long you will receive that interest rate. Am I missing something?

One thing that you are missing is the convenience of not having to transfer accounts or money around to grab the best deal... been there, done that. It was worthwhile but also a hassle, especially for IRAs.

I'm not seeing anything for 3-year bank CDs at 4.5% around here. PenFed is currently offering 18 month or 2 year at 4.35%.

 

[Spock]

One thing that you are missing is the convenience of not having to transfer accounts or money around to grab the best deal... been there, done that. It was worthwhile but also a hassle, especially for IRAs.

I'm not seeing anything for 3-year bank CDs at 4.5% around here. PenFed is currently offering 18 month or 2 year at 4.35%.

^^^ this. Especially when building a multi-rung ladder involving 10ish CDs of different durations.
Another bonus on brokered accounts is you can always sell a CD (in increments of $1K) for whatever the market thinks it's worth vs. Discover Bank (for example) putting on a 2 year interest penalty on their longer duration CDs.

 

[lordjust]

Not that it really matters much, but at Schwab, money fund payments are made on the 15th of each month (or the 1st bus day after that) except in December when they are made on the last business day of the month.

Just so you (and others) aren't surprised by a later payment in December.

Wooo… good info. Didn’t know about the December thing

 

[FiveDriver]

I notice that Navy Fed now has CD's yielding 4.25% on 3 month to 7 year terms. I have some money parked there, I'm going to call them today to verify the details on these. There's a brick & mortar Navy Fed shop nearby if I want to wave at my money as I ride into town.

Navy Fed has treated us very well over the years.

https://www.navyfederal.org/checking-savings/savings/certificates.html

 

[REWahoo]

I notice that Navy Fed now has CD's yielding 4.25% on 3 month to 7 year terms. I have some money parked there, I'm going to call them today to verify the details on these. There's a brick & mortar Navy Fed shop nearby if I want to wave at my money as I ride into town.

Navy Fed has treated us very well over the years.

https://www.navyfederal.org/checking-savings/savings/certificates.html

I had a 33 mo 3.25% CD at Navy that I opened in May. Contacted them yesterday and they allowed me to close that CD without penalty and move the funds to a 36 mo 4.05% CD.

 

[ER604me]

Have a 2 year CD at Penfed for .45% coming due in late January 2023. Asked if we could roll it over two months early into a new 2 yr CD at their advertised 4.25% rate without a penalty. Nope. They wanted to enforce the penalty. We'll be moving the funds in January

 

[MarieIG]

Such low transfer limits go away when you use another bank or brokerage to initiate the transfer. Many have much higher transfer limits.

Yes. When DH and I sold our home, initially the funds went into a bank account partially via an electronic bank-to-bank electronic transfer (which cleared the next day), and the next day when I brought in some paper bank checks the buyer had brought to the closing. (I had set up the account to have all our kiddos as beneficiaries.) I wanted the money out ASAP, and had Vanguard "pull" it out. There was a questionnaire which required me to check off where the money had come from (i.e. sale of a business, residence, etc.) but the money was pulled out in a chunk, although it took a while to clear . . .