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

[njhowie]

what price did you end up having to pay to get that ytm? It’s listed as a 4.9% originally if i looking at the right one.

99.404 + $1/cd

 

[Another Reader]

Been a Wells Fargo customer for decades, since college. Really enjoyed buying their CDs yielding over 5 percent!

 

[DuluthGA]

99.404 + $1/cd

Tks

 

[Car-Guy]

Quick question - never bought a CD through my Fidelity account ... I don't track which banks are good for CDs ... ex: is there a simple way to pick safe banks from this 6 month list?

Simple? Just make sure it's FDIC insured and you stay below the 250k limit as outlined in the FDIC guidelines.

Want more? Try this...

https://www.bauerfinancial.com/star-ratings/

 

[erkevin]

What price did you end up having to pay to get that YTM? It’s listed as a 4.9% originally if i looking at the right one.

I see the same 4.9% as you

 

[njhowie]

I see the same 4.9% as you

I paid less than $1000 for each CD.

 

[Marc]

I am also new to buying CDs through FIDO. In March I bought $50,000 Cadence Bank 9-month maturing on 12/29/23 with a 5.35% rate payable at maturity. I calculated payout of $52,006 (approximately) on 12/29/23.

However, current price is just 100.149 and value is just $50,074.50. I don't know how to make the calculation but that would imply a YTM well above 5.35% which doesn't make sense. What am I missing?

thanks,

Marc

 

[finnski1]

I see the same 4.9% as you

That's the coupon you are looking at. The yield is whatever you can pay on the secondary market.

At his price of $99.404 you get a yield of about 7.058% if your bid is accepted.

 

[njhowie]

I am also new to buying CDs through FIDO. In March I bought $50,000 Cadence Bank 9-month maturing on 12/29/23 with a 5.35% rate payable at maturity. I calculated payout of $52,006 (approximately) on 12/29/23.

However, current price is just 100.149 and value is just $50,074.50. I don't know how to make the calculation but that would imply a YTM well above 5.35% which doesn't make sense. What am I missing?

thanks,

Marc

Ignore everything you wrote in the second paragraph.

What you are missing is that in a brokerage account, CDs, like bonds, and treasuries are going to get revalued every night - this is called mark-to-market. It's an estimate of what the asset is worth. It's not an offer to buy or sell, just an estimate for valuation purposes. Because it is a brokered CD, you can buy/sell it in the market. Maybe you could get more than the mark-to-market price if you want to sell, maybe not.

Also, keep in mind that the mark-to-market valuation you see does not include the accumulated interest since the last payment date (or issue date). So, if you were to sell or buy the CD in the market today, you would collect or have to pay the accumulated interest in addition to whatever the price of the CD is.

The key, which is exactly what you have in the first paragraph, is that if you hold to maturity, you know what the return is and exactly how much you will receive.

 

[DallasGuy]

Simple? Just make sure it's FDIC insured and you stay below the 250k limit as outlined in the FDIC guidelines.

Want more? Try this...

https://www.bauerfinancial.com/star-ratings/

fyi. You can actually have your account(s) insured by FDIC up to $1,250,000. Here's an example:

Maximum Insurance Coverage for a Trust Owner when there are Five or Fewer Unique Beneficiaries:
Number of Unique Beneficiaries Maximum Deposit Insurance Coverage
1 Beneficiary $250,000
2 Beneficiaries $500,000
3 Beneficiaries $750,000
4 Beneficiaries $1,000,000
5 Beneficiaries $1,250,000

And here is the article it came from.
https://www.fdic.gov/regulations/resources/brochures/your_insured_deposits-english.html

 

[audreyh1]

I am also new to buying CDs through FIDO. In March I bought $50,000 Cadence Bank 9-month maturing on 12/29/23 with a 5.35% rate payable at maturity. I calculated payout of $52,006 (approximately) on 12/29/23.

However, current price is just 100.149 and value is just $50,074.50. I don't know how to make the calculation but that would imply a YTM well above 5.35% which doesn't make sense. What am I missing?

thanks,

Marc

Don’t worry about the current price as that doesn’t affect what you’ll get at maturity. Those prices are for folks buying/selling on the secondary market.

 

[Marc]

njhowie and audreyh1; thanks. The part I was missing is that the current value does not include accumulated interest.

 

[audreyh1]

njhowie and audreyh1; thanks. The part I was missing is that the current value does not include accumulated interest.

There is that too.

 

[Car-Guy]

fyi. You can actually have your account(s) insured by FDIC up to $1,250,000. Here's an example:

Maximum Insurance Coverage for a Trust Owner when there are Five or Fewer Unique Beneficiaries:
Number of Unique Beneficiaries Maximum Deposit Insurance Coverage
1 Beneficiary $250,000
2 Beneficiaries $500,000
3 Beneficiaries $750,000
4 Beneficiaries $1,000,000
5 Beneficiaries $1,250,000

And here is the article it came from.
https://www.fdic.gov/regulations/resources/brochures/your_insured_deposits-english.html

Actually you can have FDIC coverage for five, ten or more millions just through one financial institution (like Schwab) with something as simple as brokered CD's. Almost unlimited coverage "for most of us". Just buy CD's from a bunch of different banks through (ex) Schwab. I'm many times over the "single" 250k limit all through Schwab. A few mouse clicks for each CD is all it takes. Oh, and a healthy starting balance helps.

 

[Chuckanut]

I paid less than $1000 for each CD.

Who says you can't buy a dollar for 95¢?

 

[COcheesehead]

I see the same 4.9% as you

You’re confusing coupon and yield.

 

[dobig]

Marcus savings bumped up their savings to 4.15%. With referral (easily get one from Reddit or just ask customer service) and AARP bonus and rate is 5.25%.

 

[Free bird]

Marcus savings bumped up their savings to 4.15%. With referral (easily get one from Reddit or just ask customer service) and AARP bonus and rate is 5.25%.

The AARP bonus rate is not on the website that I can see. You have to call & ask for it? Or does it show up when you open an account? Thanks

 

[dobig]

The AARP bonus rate is not on the website that I can see. You have to call & ask for it? Or does it show up when you open an account? Thanks

"AARP members can earn a rate that’s.10% higher than the stated available APY at marcus.com for 24 months. To qualify for the rate bonus, you must be an active AARP member and you must enroll at marcus.com/aarp-savings or by calling Marcus at 833-956-2277."

https://www.marcus.com/content/dam/...-savings or by calling Marcus at 833-956-2277.

 

[dobig]

M1 Plus savings now 5%.

https://m1.com/save/high-yield-savi...ia-l1&sfmc_asset_id=720269&sfmc_channel=email

 

[MJ]

Cit Bank has a new savings account "Platinum" earning 4.85% APY on a balance of $5K or more but only .25% below $5K. Their Savings Connect is now 4.6% APY.

 

[MJ]

Marcus savings bumped up their savings to 4.15%. With referral (easily get one from Reddit or just ask customer service) and AARP bonus and rate is 5.25%.

This is only for new customers or if you refer a new customer AND the 5.15% rate is only for 1st 3 months.

 

[dobig]

This is only for new customers or if you refer a new customer AND the 5.15% rate is only for 1st 3 months.

From what I understand from Doctor of Credit you can just call every 3 months to request a new referral code. Otherwise you can give out 5 referrals thru a link Marcus gives you when you open an account. Each are good for an additional 3 months. I posted my referals on Reddit and within a couple weeks all 5 were taken so I get the higher rate until August of next year without any hassles.

 

[explanade]

Marcus savings bumped up their savings to 4.15%. With referral (easily get one from Reddit or just ask customer service) and AARP bonus and rate is 5.25%.

Apple is now offering that interest rate for their new savings product, though you have to have the Apple Card.

No withdrawals though.

But presumably easy to apply for, then you have to figure out some ACH set up to transfer money in and out.

 

[John Galt III]

Came off the sidelines to score some Bank of Hope 15 month CDs at 5.1 % for 15 month term, payable semi annually, non callable. Not as awesome as the Zion Bank CDs I got a month ago at 5.4%, lol. But not bad.