Car-Guy
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Maybe their penalty is the low rate?Not sure if anyone posted this yet but Ally bank no penalty CD is now at 2%
Maybe their penalty is the low rate?Not sure if anyone posted this yet but Ally bank no penalty CD is now at 2%
Synchrony is now 1.8% for their savings interest rate.
Not sure if anyone posted this yet but Ally bank no penalty CD is now at 2%
Nothing at Schwab was close to NASA FCU. No real membership requirements other then "joining" some NASA thing for free and I'm a member anyway so for me an easy decision. Also, many brokered CD's don't pay monthly. Fine if it's short term.I keep seeing posts about rates at specific banks and credit unions and they’re almost all below what Treasuries and brokered CDs are paying. Isn’t it much simpler to keep all of your money in one place (Vanguard, Fidelity, Schwab) and get great rates and convenience? Why deal with multiple institutions if you don’t need to and if their rates aren’t even better?
[emoji1787]Maybe their penalty is the low rate?
Nothing at Schwab was close to NASA FCU. No real membership requirements other then "joining" some NASA thing for free and I'm a member anyway so for me an easy decision. Also, many brokered CD's don't pay monthly. Fine if it's short term.
Check out a MM, FZDXX, yield is 2.2%
I'm not sure that as I age, I will be happy with having my assets scattered over many credit unions. Especially, if the difference in the rate is 0.4% or less. As some point, complications may cost me more than the little bit of money I lose.
I agree .50 is tempting but recently consolidated everything into my brokerage account. I like it.I'm surprised by how many people are willing to forgo a half percent interest just to consolidate. And I am one of them, lol. I have 4 accounts already. Andrews FCU, Vanguard, Penfed CU, and TreasuryDirect. (I could not resist the 9% I Bond deal, so I added this one recently). NASA interest rates are tempting, but I'm not biting at this point.
I also bought some nice yields on intermediates in mid June, but I agree that now, with an occasional exception, the bond market doesn’t capture my attention like it did a couple months back and my money market pays me 2.2% so I don’t feel too bad sitting on some cash. We’ll see what happens from here.I agree .50 is tempting but recently consolidated everything into my brokerage account. I like it.
I'm also keeping everything very short term while the fed continues to raise rates. I did buy some 5 to 10 year corporate bonds back in June when I could get 5% to 6%+ but the market has changed due to the drop in the 10 year Treasury. Patiently waiting for the shoe to drop again [emoji848]
Meanwhile just bought a 10/4/22 Treasury at 2.31% which at this point is good enough for me.
I'm timing my short term buys close to Fed meetings.
I haven’t added a new bank or credit union in many years, and dropped one in the interest of simplification/consolidation.
I plan to gradually reduce the number of banks and credit unions and credit cards as I age. A slew of them are related to foreign travel.
I am already a member at NASA. For me definitely worth a look. No money there now.I dunno. There were only 3 offerings that looked interesting compared to brokered CDs or USTs. The most attractive NASA FCU rates that I saw were 3.55% for 9 month CD, 3.75% APR for 15 month CD and 3.85% for 49 month CD.
https://www.nasafcu.com/personal/checking-savings/certificates/certificates---rates
Schwab is 3.10% for a 9 month UST (45 bps lower), 18 month CDs are 3.33% (42 bps lower) and 4 year CDs are 3.65% (20 bps lower). Is 20-45 bps extra worth having an account at yet another financial institution? Borderline for me.
I'm not opposed to credit union CDs where they provide a much better yield over much more convenient brokered CDs and USTs. I currently have a lot of 3.0-3.5% CDs with various credit unions that I bought in 2019... the spread on those was well worth the effort but I'm not sure if it will be when they mature in 2024.
I just put in an order for the 180-day treasury bills being auctioned Monday (8/22). Six month t-bills are currently north of 3%. I might have grabbed some of those high rate CD deals, but I am pondering moving next year and want to remain flexible in terms of cash in case I need to buy another home (e.g. prior to selling the current one).
Here's a graph of the treasury issue yield curve:
https://www.ustreasuryyieldcurve.com/
That is a tempting yield. Like you, I am staying flexible by keeping most of my fixed income in the Vanguard Settlement Fund. I have some T bills maturing from August to October but that money will stay in the SF. As long as the Fed is in a rate hiking mood, I figure the SF will track the 1-3 month T bills close enough that I'm OK with the yield from the SF. When it looks like the Fed is done hiking, I'll buy 3, 6, maybe 12 month T bills. I want to keep "cash" available and not tied up in case I need it for a roof or some other lesser but still largish expense.