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

[adrift]

2018 someone on this site posted Navy Federal CU was paying 3.5 for 5 year CD and I bought it. I have 1 year and 4 months until my commitment is done without penalty. They let me move to a 4.5% 18 month without penalty. I was thinking others may have the same 5 year CD, easy move, no paperwork done over the phone.

Thanks jw72. I had 4 of these CD's maturing in July and August of 2024. Three of them were @3.5% and one was @3.25%. I called and rolled them all into one 18-month CD @4.55%. Cumulatively, they were over 100K. That gave me a slight bump in rate.

I was told that the transfer without an EWP only applied if the maturity date of the new CD was later than the maturity date of the CD's being converted.

 

[jw72]

Thanks jw72. I had 4 of these CD's maturing in July and August of 2024. Three of them were @3.5% and one was @3.25%. I called and rolled them all into one 18-month CD @4.55%. Cumulatively, they were over 100K. That gave me a slight bump in rate

Thats a big difference, good job!!!!

 

[braumeister]

Haven't seen it here, but First Tech FCU has a 13 month 5.05%APY CD available.

https://www.firsttechfed.com/bank/share-certificates

 

[Chuckanut]

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

Just helped a friend buy a 5% non callable 1 year Cd from Schwab. Callable yielded only 0.4% more. It’s nice to do that for a buddy who needs every dollar of interest he can earn.

 

[ShokWaveRider]

I am sure there will be more in a couple of weeks.

 

[Car-Guy]

Just helped a friend buy a 5% non callable 1 year Cd from Schwab. Callable yielded only 0.4% more. It’s nice to do that for a buddy who needs every dollar of interest he can earn.

Speaking of getting "every dollar". All things being equal, I like to buy CD's that pay off interest earned monthly (coupon frequency), unless they are offering compounding. As they "pay off each month", I transfer that money to a MM fund (currently paying 4.67%). So for example, if I buy a 1yr 250k CD @ 5%, it pays me over 1k per month which I then move to a MM fund that currently pays 4.67%. Rinse and repeat each month. Multiply that for each 250k CD At the end of the year I'm up a nice chuck of change for doing nothing but clicking a mouse button a few times each month. My own way of "compounding interest". Plus if I need/want the MM funds, it's available to me in one day.

 

[ShokWaveRider]

This was Schwab Rate Offerings just now.

 

[Car-Guy]

Since I typically only buy 12 to 24 month CD's, I may have missed this. But IIRC, in the past, brokered CD's didn't compounded interest regardless of maturity terms. But now I'm seeing CD's with less than a one year maturity that "appear" to be compounding. CD's of one year or greater are still not compounding. (At least at Schwab)

Anyone else notice this or has it always been that way?

 

[jazz4cash]

Since I typically only buy 12 to 24 month CD's, I may have missed this. But IIRC, in the past, brokered CD's didn't compounded interest regardless of maturity terms. But now I'm seeing CD's with less than a one year maturity that "appear" to be compounding. CD's of one year or greater are still not compounding. (At least at Schwab)

Anyone else notice this or has it always been that way?

Do you have an example of a brokered CD that appears to be compounding?

 

[COcheesehead]

Since I typically only buy 12 to 24 month CD's, I may have missed this. But IIRC, in the past, brokered CD's didn't compounded interest regardless of maturity terms. But now I'm seeing CD's with less than a one year maturity that "appear" to be compounding. CD's of one year or greater are still not compounding. (At least at Schwab)

Anyone else notice this or has it always been that way?

All the ones I see pay either monthly, semi annually or at maturity, but the interest is not reinvested so it does not compound. I am curious what you see.

 

[Car-Guy]

Do you have an example of a brokered CD that appears to be compounding?

All the ones I see pay either monthly, semi annually or at maturity, but the interest is not reinvested so it does not compound. I am curious what you see.

Maybe I'm misunderstanding what they are saying on the website but if I look at the 9mo CD's, they are all showing an APY that's higher than the fixed coupon rate. As I said, I haven't been watching CD's that are less than a year so maybe they have always been quoted this way. If you look at CD's that are for 1 or more years, they are all quoted with the same APY as the fixed rate.

Example.Wells Fargo CUSIP 949764BL7 has a 9mo fixed coupon of 5.05% but shows an APY of 5.08. Maybe that's just an extrapolation for a year?

 

[jazz4cash]

Maybe I'm misunderstanding what they are saying on the website but if I look at the 9mo CD's, they are all showing an APY that's higher than the fixed coupon rate. As I said, I haven't been watching CD's that are less than a year so maybe they have always been quoted this way. If you look at CD's that are for 1 or more years, they are all quoted with the same APY as the fixed rate.

Example.Wells Fargo CUSIP 949764BL7 has a 9mo fixed coupon of 5.05% but shows an APY of 5.08. Maybe that's just an extrapolation for a year?

Coupons are expressed as annual rates. The description I found says the CD pays at maturity so there is no compounding. Fidelity is not showing any APY but it seems like it should be higher than 5.08 but that may take the commission into account.

 

[mf15]

People pulling money from gov't MM funds, there is an article on marketwatch but i can't read it. Here are the numbers from diff source, 60B
https://www.ici.org/research/stats/mmf

Oldmike

 

[Northforker]

All the ones I see pay either monthly, semi annually or at maturity, but the interest is not reinvested so it does not compound. I am curious what you see.

If a CD pays monthly, it makes part of the total interest available as a payout each month instead of quarterly, semi annually, annually, or at maturity.

The compounding occurs when YOU reinvest that monthly payment into another interest paying product(MM account, another CD, Treasuries, Dividend paying equity, etc.).

For example, you have a 1 year $250,000 CD paying 5% interest paying monthly, You will receive about $1040/month. If you don't need that money for expenses, you can buy a $1000 CD every month instead of waiting 12 month for your payout if you had it in a 12 month CD paying at Maturity.

What am I missing?

 

[COcheesehead]

If a CD pays monthly, it makes part of the total interest available as a payout each month instead of quarterly, semi annually, annually, or at maturity.

The compounding occurs when YOU reinvest that monthly payment into another interest paying product(MM account, another CD, Treasuries, Dividend paying equity, etc.).

For example, you have a 1 year $250,000 CD paying 5% interest paying monthly, You will receive about $1040/month. If you don't need that money for expenses, you can buy a $1000 CD every month instead of waiting 12 month for your payout if you had it in a 12 month CD paying at Maturity.

What am I missing?

Of course there can always be manual reinvesting with anything paying a distribution into something else. Compounding takes place within the current investment at the original interest rate, eliminating reinvestment risk.

 

[Free bird]

Default fears. Where’s the money going? Mattress? Guns? Gold? Art work? Who knows

 

[Car-Guy]

^^^^^
If we (the US) were to default, is any monetary investment/holding safe? Cash, stocks, bonds, MM's, CD's, etc.. Maybe gold and silver.... Maybe....

 

[Free bird]

In my opinion the best you can do when you enter the world of government default talk is to be diversified. Spread your risk around & realize certain threats are not actionable. Adding chaos to chaos won’t get you anywhere.

 

[lawman]

In my opinion the best you can do when you enter the world of government default talk is to be diversified. Spread your risk around & realize certain threats are not actionable. Adding chaos to chaos won’t get you anywhere.

Since the Federal Reserve creates money why would we ever default? In my mind what is being called default would really end up being hyperinflation. But what do I know?

 

[Quattro73]

It is tax filing time. The MM outflows are most likely attributable to people paying Uncle Sam. Banks classically see heavy outflows for taxes during April.

 

[Montecfo]

It is tax filing time. The MM outflows are most likely attributable to people paying Uncle Sam. Banks classically see heavy outflows for taxes during April.

This is government only MM funds. Reportedly tied to debt ceiling jitters.

 

[jw72]

In my opinion the best you can do when you enter the world of government default talk is to be diversified. Spread your risk around & realize certain threats are not actionable. Adding chaos to chaos won’t get you anywhere.

I would think rental property would be a good place to park $$$

 

[Chuckanut]

Depends on the political environment where the property is located. Rent control and other restrictions on landlords are raising their head in some areas. The CDC claimed it had the power to restrict evictions nationwide, though SCOTUS tossed that out. Be careful.

 

[Drake3287]

Depends on the political environment where the property is located. Rent control and other restrictions on landlords are raising their head in some areas. The CDC claimed it had the power to restrict evictions nationwide, though SCOTUS tossed that out. Be careful.

Exactly. The days of having rental properties in a state like California are long over. Renters now have all the rights here, simply no longer worth the headache. You'll see few and fewer available rentals down the road. It's already happening.

 

[copyright1997reloaded]

This is government only MM funds. Reportedly tied to debt ceiling jitters.

Also being helped (i.e. funds being withdrawn) as the risk of non Government only (e.g. SWVXX) funds goes down, money returning to a higher yielding fund. This is especially true given the spread between very short term T-Bills (e.g. a month and under) vs. commercial paper, etc.

Example: As of now SNSXX (treasuries only) is at 4.29% (7-day trailing yield) while SWVVXX is at 4.66%.