So what’s on each side of the coin? I guess one side is .75 but how about the other side?
What if it lands on its edge?
So what’s on each side of the coin? I guess one side is .75 but how about the other side?
What if it lands on its edge?
And he is right. I remember one of my college finance profs making the same point, circa 1979 or so.Jeffrey Gundlach say they should do 0 bp, the effects of the increases they have already done have yet to even work their way into the system, it takes about 9 months. The fear is the Fed is going to overdo it and create a serious recession. He said at the most 25 bp but figures the Fed will do 75 bp. Most are saying 75 bp but there are few that say 1% and I can't recall who they are. I think 75 bp will be the number but we'll see.
That's getting fairly interesting and I am already a member.
As of today, Schwab is offering 4% on 1, 3 and 5 CD's and 4.5% on 10 yr.
As of today, Schwab is offering 4% on 1, 3 and 5 CD's and 4.5% on 10 yr.
No, not callable, and yes if you want to buy through Schwab, you'd need an account. Maybe you could buy direct from the bank(s) if you want to deal with each bank...are those callable? do you have to be a member of schwab to buy?
, does it matter to you what bank you buy them from through your brokerage?
No, not callable, and yes if you want to buy through Schwab, you'd need an account. Maybe you could buy direct from the bank(s) if you want to deal with each bank...
Keep in mind that if you go directly to the bank, you likely won’t get the same rate that you can get on the brokered CDs.
Also, you don’t have to use Schwab. Any broker is fine. I use Vanguard myself.
Worse or Better?
Yep, I checked out a few directly through the banks websites. In all cases "that I checked" their rates were actually lower when going direct.Keep in mind that if you go directly to the bank, you likely won’t get the same rate that you can get on the brokered CDs.
Yep, I checked out a few directly through the banks websites. In all cases "that I checked" their rates were actually lower when going direct.
That's a change from a decade+ ago... The last time I bought CD's, (more than a decade ago) I found that I could get slightly better rates going directly to the banks. If buying from Schwab, they made their money by "skimming" 1 or 2 tenths off the top... Doesn't seem to be working that way anymore. No doubt they are still making money off brokering the CD's, you just can't see it as easily as you could in the past.Exactly. It’s worth opening a brokerage account if you don’t have one to gain access to the better rates.
No. It makes no difference to me as long as they are FDIC insured.
+100No. It makes no difference to me as long as they are FDIC insured.
This actually varies. I would say there is no "rule" as to which is more attractive.Direct from the bank will most likely be lower. Brokered CDs typically pay higher rates.