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

[ShokWaveRider]

Me too! But dry powder in Schwab MM.

 

[Car-Guy]

^^^^

That's where I've been parking my cash as CD's mature. And that ain't bad. Yes inflation is high but finally we getting something to minimize that hit.

 

[Dtail]

^^^^

That's where I've been parking my cash as CD's mature. And that ain't bad. Yes inflation is high but finally we getting something to minimize that hit.

Same here but at Fidelity.

 

[simple girl]

Hi all!

I'm trying to decide between Fidelity vs Vanguard for a rollover of a 401K into an IRA. I plan to gradually turn some of that $ into CD's and possibly into t-bills and bonds. I want to park some of the $ in a MM fund inside the new IRA in the interim. I've never purchased any of these items within an IRA so I'm not familiar with the process.

We already have a Vanguard IRA so rolling it into that would make it easier to do some rebalancing. At the same time, I've heard really good things about Fidelity for brokered CDs and bonds, and Fidelity is also the current custodian for our 401K, so I assume that would make the rollover even easier.

Which custodian would you recommend, or are they equivalent in their offerings/ease of use?

Thanks much!

 

[mf15]

Totally satisfied with FIDO,been there 30+ years.
Oldmike

 

[Spock]

Hi all!

I'm trying to decide between Fidelity vs Vanguard for a rollover of a 401K into an IRA. I plan to gradually turn some of that $ into CD's and possibly into t-bills and bonds. I want to park some of the $ in a MM fund inside the new IRA in the interim. I've never purchased any of these items within an IRA so I'm not familiar with the process.

We already have a Vanguard IRA so rolling it into that would make it easier to do some rebalancing. At the same time, I've heard really good things about Fidelity for brokered CDs and bonds, and Fidelity is also the current custodian for our 401K, so I assume that would make the rollover even easier.

Which custodian would you recommend, or are they equivalent in their offerings/ease of use?

Thanks much!

A very small consideration is to move the 401k into a ROLLOVER IRA and not a "traditional IRA". The only difference is the 401K $ are not mixed with your contributions to the traditional IRA. The consideration is supposedly 401Ks have a little bit more protection from bankruptcy/liability claims and it varies by state. By segregating the 401k funds into a rollover ira you maintain some of that protection. And while not a consideration for the general age group on this board, rollover iras can generally be transferred into a future employers 401k.

 

[ShokWaveRider]

Trying to get this thread back on track. General Brokerage discussion belong in a different thread.

Capital One 11 Month 360 CD Special 5.00%

Merchants Bank of Indiana 12month Flex 5.13%

 

[jim584672]

Bethpage FCU - 5% 12 month.

https://www.bethpagefcu.com/personal/certificate-of-deposit/

 

[latexman]

You need input from someone who has/had both.

I've been with Fido for 40+ years. I'm happy. Not looking to move.

If you pick Fido, then you can experience both, and make an informed choice after some time (1-2 years?).

Did you look at Yelp reviews?

 

[frayne]

Hi all!

I'm trying to decide between Fidelity vs Vanguard for a rollover of a 401K into an IRA. I plan to gradually turn some of that $ into CD's and possibly into t-bills and bonds. I want to park some of the $ in a MM fund inside the new IRA in the interim. I've never purchased any of these items within an IRA so I'm not familiar with the process.

We already have a Vanguard IRA so rolling it into that would make it easier to do some rebalancing. At the same time, I've heard really good things about Fidelity for brokered CDs and bonds, and Fidelity is also the current custodian for our 401K, so I assume that would make the rollover even easier.

Which custodian would you recommend, or are they equivalent in their offerings/ease of use?

Thanks much!

I have accounts (IRA and Brokerage) with both institutions and have never had a problem with either. I do like FIDO's website and the ease of navigation better than Vanguards but that is just my personal preference. At Fido rolling over a 401K into an IRA is a pretty seamless process and setting up a mm account or buying brokered CDs, MFs, stocks, etc. is breeze. I've been with FIDO for 30+ years and Vanguard for over 20. Both are fine institutions IMHO.

 

[lordjust]

Totally satisfied with FIDO,been there 30+ years.
Oldmike

+1

 

[simple girl]

I'm posting this for anyone that's locked into the add-on CD's that GTE Financial offered back in 2019 but it probably applies to most of their CD's opened prior to this year. If interested check your CD disclosure.

Their has been many threads over on depositaccounts.com regarding EWP policy and a poster SouthernGirl explains how to do it with zero EWP and it worked for me.

https://www.depositaccounts.com/community/ask/50021-gte-early-withdrawal-penalty.html

This is the post that explains it all and I followed it to the letter and it worked for me via their chat feature with no hassle whatsoever. I pulled out 100K the first time a few weeks ago and then chatted with them again yesterday and closed the CD out entirely.
IGR,
Have you received the dividends monthly? If not, withdraw the dividends that have been posted. It is so simple to have GTE to mail a check for dividends. Confirm that the principal balance is your original amount that you opened it for originally. After the dividends have been paid to you, there will be no dividends to take a 180-day dividend penalty. There should be no loss of principal. Confirm that the closing amount is equal to the principal and plus interest that is accrued and close the CD. According to GTE Truth and Savings disclosure, there is a 180-day dividend penalty. It does not disclose a principal penalty or a principal loss. Do not argue. On day one, just ask for the dividend withdrawal. On day two, just ask for the closing amount. If you agree, then close the CD.

GTE is aware of this loophole and have since changed their disclosure this year for any new CD's. They are also now allowing you to upgrade to their current specials, originally it was only new money when I inquired last month which is why I closed the entire CD and was lucky enough to move it all to a 6% CD elsewhere.

I just did this today, thank you so very much for posting this info! I took out all of the dividends and confirmed the only amount that remained was my principal.

It was a bit tricky for me. I tried to do it initially via the chat feature and she told me a small amount for the fees would be deducted. When I told her what my disclosure said, she said I'd have to call the bank. So, I did. At first they told me the same thing, but when pressed the agent looked a bit closer. She said the ~$45 fee was actually NOT a fee, it was additional money that would be paid out to me, on top of my principle. I guess that was the interest since my last dividend. Yippee!

 

[pb4uski]

Fidelity or Schwab. Recently Vanguard's customer service has been dreadful.

 

[RetiredAndLovingIt]

I just did this today, thank you so very much for posting this info! I took out all of the dividends and confirmed the only amount that remained was my principal.

It was a bit tricky for me. I tried to do it initially via the chat feature and she told me a small amount for the fees would be deducted. When I told her what my disclosure said, she said I'd have to call the bank. So, I did. At first they told me the same thing, but when pressed the agent looked a bit closer. She said the ~$45 fee was actually NOT a fee, it was additional money that would be paid out to me, on top of my principle. I guess that was the interest since my last dividend. Yippee!

You are more than welcome.
I've learned so much in this group over the last few years that has saved me ton of money so just paying it forward.

 

[Gumby]

Trying to get this thread back on track. General Brokerage discussion belong in a different thread.

Capital One 11 Month 360 CD Special 5.00%

Merchants Bank of Indiana 12month Flex 5.13%

MODERATOR NOTE - ShokWaveRider is correct. This is a general notice thread to alert people to new rates. It was never intended for substantial discussion. If something piques your interest and you would like to discuss it, please start a new thread for that purpose. That will keep this one from getting off track. Thanks.

 

[imbatman]

Fidelity showing new CD for Method Bank 5.35% settling 03/17/23 10-year with first call starting in one year 03/17/24

 

[ShokWaveRider]

Checked Schwab today. There seem to be a few of options for >5% CDs. I think I even saw a 5.2%.

I think it maybe an optimum time to jump in maybe at the end of this month. Assuming the anticipated 25bp hike. We are looking to ladder from 2 years (Maybe 3 Years depending on returns) and down in ~$225k chunks. Dry powder is getting $4.63% at the moment. Not having to worry about income for another 2 years seems attractive.

What are you CD investors doing, still waiting, or getting ready to pull the trigger.

 

[copyright1997reloaded]

Checked Schwab today. There seem to be a few of options for >5% CDs. I think I even saw a 5.2%.

I think it maybe an optimum time to jump in maybe at the end of this month. Assuming the anticipated 25bp hike. We are looking to ladder from 2 years (Maybe 3 Years depending on returns) and down in ~$225k chunks. Dry powder is getting $4.63% at the moment. Not having to worry about income for another 2 years seems attractive.

What are you CD investors doing, still waiting, or getting ready to pull the trigger.

Nibbling.
Did the 18-month Schwab Bank CD (non-callable, 5.2%). About 1% of net worth.
Did a smaller chunk of the 3-year T-Note being auctioned today (yield TBD, probably around 4.50 %-4.65%, competitive bidding closes at 1pm). About 0.5% of net worth.

ETA: 3-year note came in at 4.635% (YTM) (4.625 coupon).

 

[pb4uski]

... What are you CD investors doing, still waiting, or getting ready to pull the trigger.

I consider brokered CDs, US Treasuries and even Agency bonds to be interchangeable even though in high theory Aaa rated agency bonds have a smidgeon of credit risk compared to CDs and UST.

My ladder is pretty full at this point. I have very little dry powder right now... about 2% sitting in SWVXX at 4.48% SEC yield... but 5% of my total ladder matures in late March and another 7% in late April... so I'll have 14% available to be redeployed in the next 6 weeks or so. Just impatiently waiting right now.

 

[Car-Guy]

What are you CD investors doing, still waiting, or getting ready to pull the trigger.

Still seems highly probable to me that 1 to 2 yr CD's rates will be going up a bit more in the next 4 to 6 weeks. I expect Powell will raise rates .5% later this month so that should push CD's to 5.5% by mid April. YMMV

I'm planning to be re-buying by then.

 

[jldavid47]

I consider brokered CDs, US Treasuries and even Agency bonds to be interchangeable even though in high theory Aaa rated agency bonds have a smidgeon of credit risk compared to CDs and UST.

I only consider them to be interchangeable in a retirement account. We live in a state where we currently pay 5.15% on our taxable income. That gives Treasuries a distinct advantage. CDs and agencies would have to pay at least 0.25% higher (sometimes more) to keep me from favoring treasuries in our taxable accounts.

If you live in a state with no state income tax, then they are certainly interchangeable.

 

[pb4uski]

I only consider them to be interchangeable in a retirement account. We live in a state where we currently pay 5.15% on our taxable income. That gives Treasuries a distinct advantage. CDs and agencies would have to pay at least 0.25% higher (sometimes more) to keep me from favoring treasuries in our taxable accounts.

If you live in a state with no state income tax, then they are certainly interchangeable.

Yes, no income tax state for us, but I see your point. Even if we were in an income tax state, 99% of our money is either retirement accounts (tIRA, Roth, HSA) or i-bonds so wouldn't be a big issue for us.

 

[dmpi]

Still seems highly probable to me that 1 to 2 yr CD's rates will be going up a bit more in the next 4 to 6 weeks. I expect Powell will raise rates .5% later this month so that should push CD's to 5.5% by mid April. YMMV

I'm planning to be re-buying by then.

I generally agree with you. The economy is still going strong and it may take much higher rates to knock inflation down (let alone get it down to the target 2% which can take years & years). With high-yield MM paying good and potentially still climbing up I'm afraid to tie up my money on anything longer than 4 months.

 

[jazz4cash]

Checked Schwab today. There seem to be a few of options for >5% CDs. I think I even saw a 5.2%.

What are you CD investors doing, still waiting, or getting ready to pull the trigger.

Looking right now at 4.6% 5yr NON callable issues…..paying ~60 bps for call protection seems reasonable. Waiting for 6 yr MYGA @5.45% to get funded…applied before Xmas!

 

[Chuckanut]

Checked Schwab today. There seem to be a few of options for >5% CDs. I think I even saw a 5.2%.

What are you CD investors doing, still waiting, or getting ready to pull the trigger.

I’m waiting for CDs in the three to five year area comfortably above 5% and call protected. That’s the weak point in my ladder. I have some steps but they are all callable above 5%. IMO, the premium for the callable CDs is still rather low. I won’t buy them.