Best CD, MM Rates & Bank Special Deals Thread 2023 - Please post updates here

[mf15]

Fido Just saw a 5% 1 year cd not call protected JP Morgan Chase.
Rates getting better.
Oldmike

 

[GenXguy]

Ally Bank has an 18 month CD for 5%.

Thanks - more useful than the continuous posts about the savings account rates and money market funds going up a small fraction of one percent.

 

[ShokWaveRider]

Thanks - more useful "To Me" than the continuous posts about the savings account rates and money market funds going up a small fraction of one percent.

Highlighted by me. I personally find all the information useful until someone takes the discussion completely off point.

I personally have no interest in Ally, that does not mean is not useful to know.

 

[Drake3287]

Ally Bank has an 18 month CD for 5%.

Not sure how I missed that one this morning! I saw the ongoing 12 month 4.25% CD so I went ahead and opened a second, 11 month 5% CD with Capital One. Would rather have had that 18 month account.

Oh well, hopefully rates will still be around 5% in 11 months. Who knows, maybe they'll be 6% by then!

 

[MSDalt]

Checked 7-day Tax Free MMF Rates this morning:
SWTXX 3.43%
FTEXX 3.43%
VMSXX 3.74%

 

[ShokWaveRider]

Checked 7-day Tax Free MMF Rates this morning:
SWTXX 3.43%
FTEXX 3.43%
VMSXX 3.74%

Does income from these go towards MAGI for ACA purposes?

 

[audreyh1]

Does income from these go towards MAGI for ACA purposes?

Yes it does. Also for IRMAA purposes.

 

[ShokWaveRider]

Yes it does. Also for IRMAA purposes.

Thanks but .

 

[explanade]

FZDXX apparently dropped a hair... it was at 4.47% earlier in the week and today is 4.46%.
Maybe a rounding difference.
https://institutional.fidelity.com/...ty-money-market-fund-premium-class-fzdxx.html

What is the advantage in putting $100k into this MM as opposed to a CD?

These MM funds have expense ratios which are not zero.

If one is planning to buy equities?

Fidelity says $100k required to initially buy. But you don't have to maintain balances over that?

 

[ShokWaveRider]

What is the advantage in putting $100k into this MM as opposed to a CD?

To keep powder dry.

These MM funds have expense ratios which are not zero.

That is included in the 7 day yield.

 

[Dtail]

What is the advantage in putting $100k into this MM as opposed to a CD?

These MM funds have expense ratios which are not zero.

If one is planning to buy equities?

Fidelity says $100k required to initially buy. But you don't have to maintain balances over that?

Only need 100k to initiate, but then any balance will suffice.

 

[Spock]

...
Fidelity says $100k required to initially buy. But you don't have to maintain balances over that?

100K minimum for regular accounts. 10K minimum for tax deferred.
And once you've met the minimums and are in the fund, you can drain the balance as needed when buying other assets.

 

[audreyh1]

What is the advantage in putting $100k into this MM as opposed to a CD?

These MM funds have expense ratios which are not zero.

If one is planning to buy equities?

Fidelity says $100k required to initially buy. But you don't have to maintain balances over that?

The MM yield is after expense ratio.

MM funds are far more liquid than CDs.

You don’t have to leave the entire $100K in the fund all the time. That’s just to open it. There are other funds that get close in yield that don’t require $100K initially.

 

[copyright1997reloaded]

What is the advantage in putting $100k into this MM as opposed to a CD?

These MM funds have expense ratios which are not zero.

If one is planning to buy equities?

Fidelity says $100k required to initially buy. But you don't have to maintain balances over that?

Advantages:
Liquid
Rising rates will result in higher MM rates
Can sometimes be marginable

Disadvantages:
Not FDIC insured
Subject to falling rates (vs. lock in for CD)
Most MM funds have written in the ability to delay withdraws (e.g. if there is a run on the fund)

If one is planning on buying equities, better to have in a MM than in a CD that you would have to sell in the secondary market.

 

[Camellia]

Ally refused my 500 bonus, I thought I read the rules carefully but I believe now the funds I withdrew from Ally on Oct 18 and redeposited on Oct 28 didn't qualify as New Money. I think they updated language on Oct 20 to include 10/12 as the start date from which funds couldn't be withdrawn and redeposited later and still qualify.

Darn.

 

[njhowie]

Just picked up a few 1 year non-callables in secondary market with YTM of 5.8%

 

[aja8888]

Just picked up a few 1 year non-callables in secondary market with YTM of 5.8%

What did you buy? CD? Bond?

 

[njhowie]

What did you buy? CD? Bond?

Yes, CDs
919853HP9 @ 99.0
919853HN4 @ 99.033

 

[Marc]

Wrong thread.

 

[erkevin]

I purchased this one this morning: Tradition Capital Bank CUSIP: 89269FES0. A 3-year, callable with a YTM of 5.064% and it pays monthly (4.950%). And the 1st call is not until March, 2024

 

[Car-Guy]

1yr non callable CD's @5% are now available at Schwab.

 

[Spock]

I just ordered $5000 of the following CD

(I realize it's callable) By ordering now, am I guaranteed the 5.1% rate on the settlement date of March 7th ?

It's a CD thread, but you can get non-callable 1Y USTs at 5.07%.

 

[ownyourfuture]

I just ordered $5000 of the following CD via Fidelity.

I realize this is a callable CD, so they could take it back at any time, but by having the order in today, am I guaranteed the 5.1% rate on the settlement date of March 7th ?

 

[Car-Guy]

^^^^
Yep I bought another sizable one today too through Schwab. 1yr @ 4.95% non callable, interest paid monthly, from BankProv MA 03/04/2024. I could have got 5% 'payable at maturity" but I like to get the monthly payments. Anyway the difference between 4.95 and 5% on a 100k for one year is $50.

I've got a bunch of them maturing in late March... Hope to re-buy at well over 5% by then.

 

[Drake3287]

^^^^
I've got a bunch of them maturing in late March... Hope to re-buy at well over 5% by then.

Realistically we'll be looking at 5.10% to 5.20% by the end of March assuming the Feds do another .25% increase like most people expect. The majority of brick and mortar banks and S&L's are still below 5%. Obviously the 3 big online banks are all offering 5% now.