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

[stephenson]

Thanks, audreyh1!

I've got some extra cash right now - equities are scary with debt crisis, well, I guess so is everything else.

SPAXX is about 4.77 (7 day), CDs 5 ish? IBonds 4.3?

 

[audreyh1]

At Fidelity I think all CDs are FDIC insured although they do explicitly list it.

I pay more attention to the call protection as I don’t like callable CDs, not generally an issue with very short maturities.

 

[JohnDoe]

Did you check the settlement date for the CD's? Rarely have I bought one that settles the same day, it's usually 2-3 days away. I looked at the new issues on Fidelity and the earliest settlement date right now is 5/12.

I bought a different one yesterday (with a settlement date of 5/16) and it filled already. The other 3 from days ago are still pending orders - not filled yet.

 

[DrgLrd]

I've noticed recently about brokered CD's that seems to be happening (at Schwab anyway)... As I've mention before, I like to buy CD's that pay "earned interest" on a monthly basis. That way I can reinvest the interest payments in more CD's and/or MM funds. (My way of compounding) Anyway, in the past I could buy 6mo, 9mo, 1yr or 18mo CD's that paid monthly. Now it's either semi-annually or at maturity. I have to go out to two year CD's to find any that pay monthly.

Anyone know a calculator to compare those "interest at maturity" CDs to one that deposits interest back into the CD?


100k into a 5.15% brokered CD gives $5150 at 1yr maturity, but



100k into a 4.75% bank CD with the interest added monthly, how much is this worth at 1yr?

 

[audreyh1]

Doesn’t APY tell you that?

 

[stephenson]

Odd - some settlement dates are May 22-23 ... thus means period of CD doesn't start til then, correct? This was on 3 month issues.

If so, then why are some quick and some not?

 

[DrgLrd]

Doesn’t APY tell you that?

Meaning 100k into a 4.75% bank CD with the interest compounded monthly gives $4,750?


so the actual interest rate (which they hide), to compare with the brokered 5.15%, is even lower.

 

[Car-Guy]

Anyone know a calculator to compare those "interest at maturity" CDs to one that deposits interest back into the CD?


100k into a 5.15% brokered CD gives $5150 at 1yr maturity, but



100k into a 4.75% bank CD with the interest added monthly, how much is this worth at 1yr?

I think the CD above (bold) would be worth about $104,854.79 w/monthly compounding for one year.

 

[audreyh1]

Odd - some settlement dates are May 22-23 ... thus means period of CD doesn't start til then, correct? This was on 3 month issues.

If so, then why are some quick and some not?

It’s all over the map, whatever each bank decides. Meanwhile your funds are earning interest in your core account (or other MM fund) until settlement day.

I imagine they set the settlement day to allow enough time for each CD to be completely ordered. Judgement call I would guess.

 

[audreyh1]

Meaning 100k into a 4.75% bank CD with the interest compounded monthly gives $4,750?


so the actual interest rate (which they hide), to compare with the brokered 5.15%, is even lower.

APY assumes compounded interest I believe. Bank CDs usually give both numbers but for comparison use APY.

 

[lawman]

Meanwhile your funds are earning interest in your core account (or other MM fund) until settlement day.

Where is this?..At Schwab they will not take funds from MM account..
Funds must be in cash account to settle..

 

[DrgLrd]

WELLS FARGO BANK NA 5.150000 02/16/2024 05/16/2023

Will that still be available a month from now? I'm new to brokered CDs and I'm trying to get the timing right.

 

[audreyh1]

Where is this?..At Schwab they will not take funds from MM account..
Funds must be in cash account to settle..

Fidelity

The core (settlement) account at Fidelity is usually a MM account SPAXX or FDRXX and both are currently yielding 4.7%+.

 

[Car-Guy]

Will that still be available a month from now? I'm new to brokered CDs and I'm trying to get the timing right.

Nobody knows that... Get them while they are hot, if you can. Some are only available for a few days or maybe even hours. The ones that pay better/best rates tend to go much quicker. (Duh)

 

[audreyh1]

Will that still be available a month from now? I'm new to brokered CDs and I'm trying to get the timing right.

Note that CD issue as it settles on 5/16. Who knows what will be offered a month from now.

 

[ShokWaveRider]

SNAXX is 5.04% today. I am going to keep my spare cashish there till the current financial turmoil is over.

 

[Car-Guy]

Doing much the same thing but I'm currently stuck with SWVXX @ 4.89%.


As Gordan Gekko said in Wall Street. "If you don't have enough, you can't pi** in the tall weeds with the big dogs."

 

[RetiredAndLovingIt]

Anyone know a calculator to compare those "interest at maturity" CDs to one that deposits interest back into the CD?


100k into a 5.15% brokered CD gives $5150 at 1yr maturity, but



100k into a 4.75% bank CD with the interest added monthly, how much is this worth at 1yr?

$4750.*corrected*
Here is the calculator and be sure to change to $0 additional contributions that are preset (100)at least on my screen.
I am buying tons of short term CD's maturing every month for my living expenses for the next 2 years. For long term money that I won't need to touch, I'm still getting more at credit unions at least for now but that may change.

https://www.depositaccounts.com/tools/compound-interest-calculator.aspx

 

[copyright1997reloaded]

Where is this?..At Schwab they will not take funds from MM account..
Funds must be in cash account to settle..

Fido is vastly superior in this regard... Funds sitting in SPAXX (4.73%) or FCZXX (4.83%) until the order settles.

 

[RetiredAndLovingIt]

Will that still be available a month from now? I'm new to brokered CDs and I'm trying to get the timing right.

No, availability and rate can change at any time both up or down but once you buy you're locked and if it does not settle for a couple of days you could cancel and rebuy while that was still an option if the rates moved higher.
You can click on description in the header and it will sort by bank, you can also click on yield/maturity date/settlement date or call protected to sort by what you're looking for.
I played around for months before actually buying a single $1000 30 day new issued CD to test it out and make sure I understood how everything works. I'd suggest you do the same.
Here is all the new issue Wells Fargo Bank offerings right now.

 

[dmpi]

SNAXX is 5.04% today. I am going to keep my spare cashish there till the current financial turmoil is over.

I'm in the same boat. At this point it's not worth the trouble of getting a 3 month or 6 month. We'll have to see how this all plays out.

 

[JohnDoe]

I am sure 99% of you folks know this, but this is what Fidelity told me today.

The issuing bank has up until the settlement date to fill an order and that it usually depends on how much and when the issue is sold. If the issue sells out quickly, it might settle quickly. Once he order is placed, you are guaranteed the issue.

My orders from 5/10 with settlement dates of 5/16, 1 filled yesterday and 2 filled today.

 

[Gotadimple]

Fido is vastly superior in this regard... Funds sitting in SPAXX (4.73%) or FCZXX (4.83%) until the order settles.

Meaning that Fidelity takes funds from a Money Market account and Schwab does not without client intervention.

It's a manual process at Schwab
- order the CD
- check the settlement date (provided in the online confirmation)
- move money from the Schwab MMF to your brokerage (post-tax/pre-tax) account before the settlement date.

It is one more step that can be done on the same day you order the CD.

- Rita

 

[pb4uski]

Anyone know a calculator to compare those "interest at maturity" CDs to one that deposits interest back into the CD?


100k into a 5.15% brokered CD gives $5150 at 1yr maturity, but



100k into a 4.75% bank CD with the interest added monthly, how much is this worth at 1yr?

The future value will be $100k * (1+4.75%/12)^12 or $104,854.79, or $4,854.79 of total interest.

 

[RetiredAndLovingIt]

I hope this is not a sign of what's to come, one of my credit unions who offer some good promotions has dropped their IRA Certificate rates to 1% and below. Their regular share certificates are still between 3-4%.
I have 3 CD's with them all maturing this month at 4%+ so I called to see what's going on and there was no explanation or interest in keeping my account, just an apology. They did run a special 2-3 months back for 6% for 18 months if I remember correctly so maybe they were so swamped with IRA deposits that they simply don't need to offer any deals right now. My money is now in the process of moving on to Nasa FCU and Alaska for 5%+ offers.