Gotadimple
Thinks s/he gets paid by the post
- Joined
- Feb 17, 2007
- Messages
- 2,624
American Express announced a change in interest rates on their High Yield Savings account from 1.4% (announced 8/4) to 1.5% effective 8/11.
Y'all really ought to check out CFG Bank's rates.
Money Market Savings now at 2.55%. 2nd hike this month.
CD's no slouch either. 12 month at 3.05 pct.
American Express announced a change in interest rates on their High Yield Savings account from 1.4% (announced 8/4) to 1.5% effective 8/11.
I just can’t fathom how a large financial institution would make such a tiny change in such a short span of time. Makes me wonder.
If a brokered CD says it pays interest semiannually, does that payment get added to the principal or paid out to my settlement fund, or do I get to choose when I buy it which way it gets handled?
Brokered CD interest gets paid out to your settlement fund.
Brokered CD interest gets paid out to your settlement fund.
What happens to the principal?
Especially if you didn't set auto-rollover?
Also can you change the auto-rollover setting after buying the CD at Fidelity?
I can. Competitive is a double-edged sword when it comes to banks and credit unions.I just can’t fathom how a large financial institution would make such a tiny change in such a short span of time. Makes me wonder.
Was going to buy some Penfed 5 or 7 year CDs at 3.2% but don't have the right phone with me for two factor authentication ! Will have to wait til Monday. Arggghh.
And the new rate isn't competitive...
I'm not aware of a thread discussing current yields on T bills. Is it OK to use this thread to discuss buying T bills vs CDs, MM and bank deals?
I won't post anything until I get the OK, I don't want to complicate the thread with another topic if the Mods would not want that.
I'm not aware of a thread discussing current yields on T bills. Is it OK to use this thread to discuss buying T bills vs CDs, MM and bank deals?
I won't post anything until I get the OK, I don't want to complicate the thread with another topic if the Mods would not want that.
That's really unfortunate "for us".Not a Mod,
Yes.
Not a Mod, but IMO during periods where T-bills are competitive with CDs, MM funds and high yield savings accounts it’s certainly appropriate to discuss them here.
An add-on CD is a spectacular deal. After a year the NFCU deal becomes 3.3% for 21 months. After 2 years it's 3.3% for 11 months. You're getting a long dated call option on that rate. I wish the term was longer, and of course a higher rate I would not hate! I had just about 1K laying around in a share account earning 0.25%
Edit: that should be 3.3% for 9 months after 2 years.
Thanks for the replies.
So here is my thinking on T bills instead of CDs or online savings accounts. I haven't been buying T bills in my taxable and rollover IRA for a month or so because I think yields could move up due to inflation and recession fears. So keeping things very short term and liquid seems like a good idea. The 3 month T bill on Friday 8/12 was 2.63% and the indicative yield on the 8/15 auction is 2.51% but both of those may change each day. The Vanguard Settlement fund's 7 day SEC yield as of Friday 8/12 is 2.11% so it seems like a better place to wait vs locking in a 90 or 180 day T bill right now. I might get some 30 day or 60 day T bills depending upon what things look like but 60 days is a bit long, those both auction every Tuesday.
Fed meeting is 9/20 and 9/21 so I'll see how much they raise the overnight rate and see how it affects the T bill rates, 50 bps is being touted after the CPI and was it GDP last week cooled inflation fears but I think it'll be 75 bp again. Also the Fed will be doing some talking at the end of August at some annual meeting out west and may influence things.
I would like to move the money I want in T bills later this year with the idea I am locking in a good yield should the Fed start to decrease the FOMC rate early next year.