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

[Car-Guy]

How critical are the bank ratings on these cd purchases? If you’re under $250K should you care? I was looking at the Schwab offerings. Under $250K just choose the highest return?

No I don't care as long as they are FDIC insured and I stay under the 250k aggregate per bank....That's what I've been doing.

NOTE: I personally do look at the issuing banks websites and would stay away from those that claim to be big in (mention) Cyber Currency, but other than that, they are all pretty much to same to me. YMMV

 

[GenXguy]

How critical are the bank ratings on these cd purchases? If you’re under $250K should you care? I was looking at the Schwab offerings. Under $250K just choose the highest return?

This was also just discussed a several days back in this thread.

 

[Dtail]

Early last week I watched the 5 year / 5% cds sell out in about an hour. Later in the week there were more listed and they lasted longer but it was still hours. It was definitely an “if you snooze, you lose” environment.

Having said that, the 5 year / 4.9% offerings hung around. I think the “5” is a psychological thing adding to the mix.

Subscribe here and on the Golden Period thread for posts when they appear.
https://www.early-retirement.org/forums/showthread.php?t=114400&referrerid=37143

Yup, grabbed the 4.9% for my mom. Again 10 bp will not matter.

 

[Dtail]

My jump into CDs number was 5%+, I am slowly putting all my/our spare cash into them. $400k already allocated. Let us see what next week holds. 3 years is my max duration at the moment, as I cannot think out any further, I am too old.

Interesting that you don't go out further, not being an equity guy.

 

[Maximus]

This was also just discussed a several days back in this thread.

Ok, checked back and found the posts. Some hearty soul bought from a bank with B rated status. I guess no worries is the conventional wisdom.. Thanks GXG for the info.

 

[erkevin]

As Freedom56 stated, all of those Morgan Stanley CDs did disappear this morning, but came back after a few moments. I was initially not happy as I had a CD mature this AM and I had $50k waiting to be put to better use. Fortunately, they did re-populate and I snagged a 2-year @5.3%.

 

[Car-Guy]

I saw a new issue 1yr CD for 5.4% at Schwab pop up just after the market open this morning. It's already sold out. "Some folks" seem to be chasing .05% difference... Still a couple left for 5.35%... Note, .05% is only $125 a yr for a 250k CD.

 

[njhowie]

I saw a new issue 1yr CD for 5.4% at Schwab pop up just after the market open this morning. It's already sold out. "Some folks" seem to be chasing .05% difference... Still a couple left for 5.35%... Note, .05% is only $125 a yr for a 250k CD.

Many times, at least at Fidelity, if folks have put an order in for a new issue and it hasn't been distributed yet, they can change their mind and cancel. So, you may see a few CDs show in the list at a higher rate. It's not that they made another 5,000 of them available, just someone canceling their order for 5 or 10 from a couple weeks ago. When I see that happen, I have no problem quickly grabbing them. What was my effort, clicking a few buttons?

 

[MarieIG]

I was eyeballing some Morgan Stanley over at Fidelity, but my transfer (which showed up quickly) seems to be taking a while to be available to trade.

Que Sera Sera . . .

 

[Car-Guy]

^^^^^
On line transfers into Schwab take about 3 days to become available for trading. Transfers from Schwab to my local bank are available the same day they are received, regardless of the amount. Go figure.

 

[erkevin]

And Freedom56's prediction came true; all Morgan Stanley CDs are on the secondary market with significantly lower yields and all are callable (at TDA).

 

[pb4uski]

And Freedom56's prediction came true; all Morgan Stanley CDs are on the secondary market with significantly lower yields and all are callable (at TDA).

I've noticed that just in my shopping today. New issue CDs have more attractive yields than secondary purchases... but that was true all last week as well.

 

[Lakedog]

^^^^^
On line transfers into Schwab take about 3 days to become available for trading. Transfers from Schwab to my local bank are available the same day they are received, regardless of the amount. Go figure.

This is the reverse of my experience with TD Ameritrade (now owned by Schwab). When I transfer money into my TDA account it is available immediately for trading but going the other way it is the next day before it hits the account (credit union). Are you pulling into your Schwab account or transferring from your bank? Hope I'm not going to experience a downgrade of service when my account is integrated into Schwab.

 

[Freedom56]

And Freedom56's prediction came true; all Morgan Stanley CDs are on the secondary market with significantly lower yields and all are callable (at TDA).

Should I pick lotto numbers now?

 

[Car-Guy]

This is the reverse of my experience with TD Ameritrade (now owned by Schwab). When I transfer money into my TDA account it is available immediately for trading but going the other way it is the next day before it hits the account (credit union). Are you pulling into your Schwab account or transferring from your bank? Hope I'm not going to experience a downgrade of service when my account is integrated into Schwab.

I have an on-line (bi-directional) transfer setup with Schwab and my local bank. So I send money to my local bank or pull money from my local bank all from Schwab. I'm usually transferring 25 to 100k at a time so maybe that matters but they hold in-bound transfers for ~3 days once received. They do process outbound transfers overnight and it's available to me as soon as my local bank receives it.

This is one of my few complaints about Schwab. Been with them 40+ years and maintain a balance well over 1m. Doesn't seem to matter.

 

[RetiredAndLovingIt]

This one has been up for a few hours today and still not fixed. That's the kind of yield I'm looking for on a 1 month CD

 

[Brook2]

Perhaps a question asked a million times - forgive I'm new here - but I can't figure out how to read this thread from new to old? I like to visit it often, but i always have to click on the last page number and read backwards. There must be a better way and it's not obvious to me. Viewing "first unread" seems to want to make me read everything a year of history. Thx!

 

[Car-Guy]

^^^^^ Lot's of ways. Here's a few.


Just click "First" at the front of the page numbers.

If you want to jump to a specific page, just modify the page # in the URL with the page # you want to jump to. See below for an example if you want to go to page 20 of this thread.

https://www.early-retirement.org/fo...-2023-please-post-updates-here-116449-20.html

Or even easier, just click the down arrow key and enter the page # you want (located at the end of the page numbers)

 

[lordjust]

This one has been up for a few hours today and still not fixed. That's the kind of yield I'm looking for on a 1 month CD

is it non-callable?

 

[TN Jim]

Brook2 said" Viewing "first unread" seems to want to make me read everything a year of history."

I use this method... https://www.early-retirement.org/forums/f32/i-was-this-many-years-old-116683.html

 

[njhowie]

3-year 5.5%, callable starting in 6 months available at Fidelity. 19,000 of them still available.

DSN3L1688

 

[Jimonlimon]

I'm done with a major shift from bond and money market funds to CD's in preparation of retiring in the next 9-19 months. Moved 1/3 of my 401k into CD's from 1 to 5 years out. Left the rest in assorted equity funds. I may have second thoughts in a couple days though! Purchased the 1-2 year CD's last week and 3-5 year this week. (should have gone the other way as I lost 0.1% on the 5 year CD for waiting.)

Rates range from 5.35% (1 yr) to 4.80% (5 yr). All purchased within my Schwab PCRA account.


AMERICAN EXPRESS 5.35%24CD FDIC INS DUE 03/21/24US

FULTON BANK 5.35%24CD FDIC INS DUE 09/23/24US

AMERICAN EXPRESS 5.25%25CD FDIC INS DUE 03/24/25US

MORGAN STANLEY B 5.25%25CD FDIC INS DUE 03/24/25US

MORGAN STANLEY BANK 5%26CD FDIC INS DUE 03/23/26US

CUSTOMERS BANCOR 5.05%26CD FDIC INS DUE 03/24/26US

SYNCHRONY BANK 4.9%27CD FDIC INS DUE 03/29/27US

SYNCHRONY BANK 4.8%28CD FDIC INS DUE 03/29/28US

 

[JohnDoe]

For these callable CDs, do they typically get called? What are the factors in determining if they get called? Thanks.

 

[Spock]

For these callable CDs, do they typically get called? What are the factors in determining if they get called? Thanks.

There isn't any solid math to determine if a CD gets called. The higher rates go the less likely your bond will be called. The lower rates go the more likely it will get called.

 

[NomDeER]

There isn't any solid math to determine if a CD gets called. The higher rates go the less likely your bond will be called. The lower rates go the more likely it will get called.

And if they get called when there are lower rates, you will have to reinvest at lower rates. Callable CDs also make it difficult to figure out where the CD fits in a bond/CD ladder. Personally, I've never seen a callable CD where the premium for being callable was worth it to me. Other people's mileage obviously varies.