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

[MarieIG]

Thanks! I keep buying these Capital One 5 yr CDs as they rise.

Question: if I buy $250k in Vanguard and another $250k in Fidelity, am I covered under FDIC protection or not? It is the same bank but under 2 different brokerages?

Does anyone know?

I don't know - but I would err on the side of caution.

 

[gromit]

Thanks! I keep buying these Capital One 5 yr CDs as they rise.

Question: if I buy $250k in Vanguard and another $250k in Fidelity, am I covered under FDIC protection or not? It is the same bank but under 2 different brokerages?

Does anyone know?

The broker is just the sales channel. FDIC coverage would be directly related to the insured institution and not based on where you got it. So, No you would NOT get extra coverage from using two brokerage firms.

 

[Montecfo]

CFG Bank HY savings account now at 3.49 percent.

Not bad.

 

[camfused]

viobank MM is 3.52% now

 

[Golden sunsets]

Ivybank is now at 3.50%

Sent from my SM-T510 using Early Retirement Forum mobile app

 

[frank]

doesn't the fdic cover 250k per person, 500k per man and wife at each institution? Not just 500k total wherever you bank total?

 

[audreyh1]

Yes it’s $500K for a joint (2 person) account. Our brokerage accounts are joint.

I haven’t actually yet bought a brokered CD so never worried about it. I only use short-term CDs and when the brokered CDs looked attractive to me T-bills were usually a bit better. I tended to use no penalty CDs otherwise so that was part of it.

 

[FiveDriver]

It appears that the Ally Bonus on High Yield Savings Deposit has expired at the end of October. I have about $25k that is 'mobile' and would like to use it to follow these bonus offers -- but he who hesitates is 'lunch'.

Any other Bonus Offers on Savings Deposit Accounts worth pursuing ??

 

[lucky penny]

It appears that the Ally Bonus on High Yield Savings Deposit has expired at the end of October. I have about $25k that is 'mobile' and would like to use it to follow these bonus offers -- but he who hesitates is 'lunch'.

The Ally offer was extended to Nov 4.

 

[jim584672]

7-Month Inflation Buster Share Certificate Special Offer

Rate 4.91% APR 5.00%

"1Offered rate is accurate as of 11/04/22 and will be available through 12/02/2022. Minimum of $1,000 to open and maintain the account; account must be opened with new money (i.e., money not already on deposit at Andrews Federal Credit Union). Minimum of $1,000 to earn the advertised APY. Maximum balance allowed is $100,000. Penalties apply for early withdrawal. Fees may reduce earnings on the account. The credit union reserves the right to change offered rates at any time. Limit of 1 (one) 7-month Inflation Buster. Special Share Certificate per membership. At maturity, all 7-Month Inflation Buster Special Share Certificates will automatically renew at the 12-Month share certificate rate and term."

https://www.andrewsfcu.org/Learn/Resources/Rates/Share-Certificate-Rates

 

[audreyh1]

Hmmmmm…….

Thanks for the notice!

Andrews sometimes has interesting end of the year specials.

 

[gromit]

doesn't the fdic cover 250k per person, 500k per man and wife at each institution? Not just 500k total wherever you bank total?

Yes. Just to clarify, you can have a bunch of accounts at different institutions that are each FDIC insured up to the 250k single/500k joint limit. The key is that each bank is a different institution with their own FDIC insurance certificate. In the case of brokered CDs, what broker you buy them from has nothing to do with insurability. Its the FDIC insurance for the institution that created the CD that determines insurability. You can have millions of dollars in CDs and/or brokered CDs and all are insured as long as the CDs for any one issuing institution doesn't exceed the 250/500 limit.

 

[simple girl]

GTE is offering 4.13% for a 1 yr CD.

https://www.gtefinancial.org/products/share-certificates

 

[copyright1997reloaded]

I'm buying 1,2,and 3 mo CD's north of 3% for now. I expect we will be able to buy 6 month CD's north of 5% in the next 30-45 days. If 5 yr CD's paying monthly are north of 6%, I'll back up the truck.

Why buy a 3-month CD "north of 3%" when you can buy a 3-month T-BILL with a 4.11% YTM? (as of today).

 

[Transhuman]

Like the idea of CD’s through Morgan Stanley. Myopic vision has keep me thinking of my local banks CD’s only.

 

[Earl E Retyre]

Yes. Just to clarify, you can have a bunch of accounts at different institutions that are each FDIC insured up to the 250k single/500k joint limit. The key is that each bank is a different institution with their own FDIC insurance certificate. In the case of brokered CDs, what broker you buy them from has nothing to do with insurability. Its the FDIC insurance for the institution that created the CD that determines insurability. You can have millions of dollars in CDs and/or brokered CDs and all are insured as long as the CDs for any one issuing institution doesn't exceed the 250/500 limit.

Something I just learned today is that if you have TOD designations on an account then this adds to your fdic limit.

“Add beneficiaries to your accounts.
You can increase your FDIC insurance coverage by creating a payable-on-death account (also known as an informal trust, in-trust-for, or Totten Trust account) or titling an account in the name of a formal revocable trust . For these account types, each unique beneficiary adds $250,000 of coverage up to FDIC limits. For example, a payable-on-death account with 1 owner and 5 beneficiaries could be insured up to $1,250,000”

Source: https://www.ally.com/bank/fdic/

 

[MJ]

Does any know if there is either an app or a website that does a comparison of CD and treasury bills by calculating the interest on a CD and treasury bond and also deducts your fed income tax and state tax, if you have, based on your inputted rate. It seems that if you live in a state with income tax, some of these supposed high interest CDs don't compared to short term treasuries.

 

[money4wells]

Fidelity has a 5% 5-year CD, non-callable, paid semi-annually, from Capital One Bank.

 

[money4wells]

Does any know if there is either an app or a website that does a comparison of CD and treasury bills by calculating the interest on a CD and treasury bond and also deducts your fed income tax and state tax, if you have, based on your inputted rate. It seems that if you live in a state with income tax, some of these supposed high interest CDs don't compared to short term treasuries.

MJ - I don't know a site to calculate CD vs Treasury with tax implications, but I was searching for the same info and found this on Zack's site:
To compare the interest rate from a CD with the rate from a Treasury bond and see if US Treasury bond prices and yields are a good deal, calculate the state-taxable-equivalent yield of the Treasury bond. The equivalent yield is determined by dividing the Treasury bond yield by one minus your marginal tax rate. As an example, say your state income tax rate is 8 percent and the Treasury bond you are looking at yields 3 percent. One minus 8 percent – 1 minus 0.08 in decimal form – gives 0.92. Divide the 3 percent by 0.92 to get a taxable equivalent yield of 3.26 percent. A CD must yield more than 3.26 percent to be a better deal than the Treasury bond.

 

[JoeWras]

Try this: https://www.bankrate.com/retirement/tax-equivalent-yield-calculator-tool/

Enter 0 for your federal income to see just the effect for a state. It matches money4wells calculations below.

MJ - I don't know a site to calculate CD vs Treasury with tax implications, but I was searching for the same info and found this on Zack's site:
To compare the interest rate from a CD with the rate from a Treasury bond and see if US Treasury bond prices and yields are a good deal, calculate the state-taxable-equivalent yield of the Treasury bond. The equivalent yield is determined by dividing the Treasury bond yield by one minus your marginal tax rate. As an example, say your state income tax rate is 8 percent and the Treasury bond you are looking at yields 3 percent. One minus 8 percent – 1 minus 0.08 in decimal form – gives 0.92. Divide the 3 percent by 0.92 to get a taxable equivalent yield of 3.26 percent. A CD must yield more than 3.26 percent to be a better deal than the Treasury bond.

 

[Accidental Retiree]

Fidelity has a 5% 5-year CD, non-callable, paid semi-annually, from Capital One Bank.

I got this one yesterday but at Schwab.

 

[Gotadimple]

Shows 2.5% online. Where are you seeing this?

You are correct. It's a typo on my part.

 

[NomDeER]

Fidelity has a 5% 5-year CD, non-callable, paid semi-annually, from Capital One Bank.

Vanguard has this one. It also has a CD from Discover with the same duration and rate. Both non-callable.

 

[oiseux]

I got this one yesterday but at Schwab.

I was planning this out as well, there were several choices of noncallable CDs between 4.8 and 5% to construct a nice ladder using their tool.

 

[Montecfo]

MJ - I don't know a site to calculate CD vs Treasury with tax implications, but I was searching for the same info and found this on Zack's site:
To compare the interest rate from a CD with the rate from a Treasury bond and see if US Treasury bond prices and yields are a good deal, calculate the state-taxable-equivalent yield of the Treasury bond. The equivalent yield is determined by dividing the Treasury bond yield by one minus your marginal tax rate. As an example, say your state income tax rate is 8 percent and the Treasury bond you are looking at yields 3 percent. One minus 8 percent – 1 minus 0.08 in decimal form – gives 0.92. Divide the 3 percent by 0.92 to get a taxable equivalent yield of 3.26 percent. A CD must yield more than 3.26 percent to be a better deal than the Treasury bond.

This is correct only if the taxpayer is unable to deduct state taxes.