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

[Car-Guy]

Just start charging them a $35 late interest payment fee. They would do the same to you. [emoji6]

I wonder if you could complain to the CFPB.

I wish I could.


Schwab tells me the contracts they have with these banks, gives the banks some "wiggle" room. (Funny, they never pay early) Well IMO, they should say payments are due to me "somewhere around X date" and not on X date specifically if that's they way they operate.

 

[lawman]

That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..It seems treasuries always settle within a week..Is that correct?

 

[Car-Guy]

That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..

That's true, but I know that going in and can decide to buy or not.

 

[lawman]

Aren't treasuries more timely?

 

[Car-Guy]

I don't buy treasuries (directly) so I don't know for sure. But I'm sure there are others here that will know.

 

[11522914]

That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..It seems treasuries always settle within a week..Is that correct?

At Schwab I just buy it and let it show a negative cash balance. Then I sell my SWVXX 1 day prior to the settlement date. A little bit of a pain but at least I keep earning interest right on up to the settlement date.

 

[Chuckanut]

RANT on:

I've commented before that it really irritates me when a bank doesn't pay it's brokered CD's interest on time as promised. (I like to reinvest the payments in SWVXX as soon as I receive them). I've checked with Schwab and they assure me they post payments as soon as they receive them from the issuing banks. Most pay on time but about ~25% delay payments by a few days. (I can understand when a payment date falls on a weekend but not on a business day)

Now I'm thinking about starting to call the issuing banks myself and complain and/or posting negative feedback on the issuing banks website about their practice of delaying payments. My only way to fight back, I guess.


RANT off (for now)...

My father used to refer to such people as chiselers. The name comes from the old days when coins were made of real gold or silver. Unethical people would use a chisel to scrape a bit of gold off of each coin, not enough to be noticed. Eventually, they could melt it down into something worth real money.

That is the reason coins have those serrated edges. So you can identify a coin that had been chiseled.

 

[Car-Guy]

RANT on:

I've commented before that it really irritates me when a bank doesn't pay it's brokered CD's interest on time as promised. (I like to reinvest the payments in SWVXX as soon as I receive them). I've checked with Schwab and they assure me they post payments as soon as they receive them from the issuing banks. Most pay on time but about ~25% delay payments by a few days. (I can understand when a payment date falls on a weekend but not on a business day)

Now I'm thinking about starting to call the issuing banks myself and complain and/or posting negative feedback on the issuing banks website about their practice of delaying payments. My only way to fight back, I guess.


RANT off (for now)...

So I looked a little deeper and found this one particular bank (1st Carolina) has only paid me on time "once" since I bought a CD from them. They have always been a day or more late with their payments to me, so far.

Float?

 

[audreyh1]

That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..It seems treasuries always settle within a week..Is that correct?

I don’t worry about it because at Fidelity my money continues earning a decent MM rate until the CD s issued.

Treasury bills settle/issue within a few days to a week from auction. Other treasuries can take a bit longer. Regardless your funds don’t leave the account until the settle/issue date so mine continue to earn MM interest.

 

[lawman]

I don’t worry about it because at Fidelity my money continues earning a decent MM rate until the CD s issued.

Treasury bills settle/issue within a few days to a week from auction. Other treasuries can take a bit longer. Regardless your funds don’t leave the account until the settle/issue date so mine continue to earn MM interest.

Schwab requires funds to be in cash account which pays nothing..I buy my treasuries on secondary market I guess..They told me I should not place an order to buy unless I have money in cash account to pay for it

 

[audreyh1]

Schwab requires funds to be in cash account which pays nothing..I buy my treasuries on secondary market I guess..They told me I should not place an order to buy unless I have money in cash account to pay for it

I forgot who your broker was - yeah, dead money.

 

[jim584672]

Brokered CDs are in the name of DTCC (Cede & Co.), interest payments come from the bank to DTCC, then to the broker, then the broker splits out the money to the customers. So the delay can be caused by the bank, DTCC, or the broker.

 

[Chuckanut]

Schwab requires funds to be in cash account which pays nothing..I buy my treasuries on secondary market I guess..They told me I should not place an order to buy unless I have money in cash account to pay for it

It pays 0.4%. Yes, almost nothing.



I sell necessary MM fund shares a day or two before the settlement date. A hassle, but it works.

 

[pb4uski]

That's also a factor when buying brokered C. D.'s..When I buy one I can find nothing offered that settles in less then a week..So my money is dead money for a week..It seems treasuries always settle within a week..Is that correct?

Why is your money dead for a week? I just carry a negative settlement account balance for the purchase amount and then on the settlement date I sell that same amount of SWVXX. The proceeds from the sale of SWVXX and the settlement of the buy then cross that day (or night).

 

[pb4uski]

Schwab requires funds to be in cash account which pays nothing..I buy my treasuries on secondary market I guess..They told me I should not place an order to buy unless I have money in cash account to pay for it

No, you misunderstand how the Schwab works. I frequently carry a negative settlement account balance at Schwab. In fact, as I write this of the 8 Schwab accounts that I have two have negative settlement account balances: one for $50k and another for $100k for four new issue bonds that settle between 9/18 and 9/28.

 

[copyright1997reloaded]

No, you misunderstand how the Schwab works. I frequently carry a negative settlement account balance at Schwab. In fact, as I write this of the 8 Schwab accounts that I have two have negative settlement account balances: one for $50k and another for $100k for four new issue bonds that settle between 9/18 and 9/28.

You are correct, and even though the balances shows "subject to margin", in my calling both Ameritrade and Schwab they ensured me that no margin would be charged (prior to settlement date).

It is still irritating, and I find Fido's setup much easier to keep track of, where they show it in balances as "Committed to open orders" (prior to the auction or CD locking) and then show the debit AFTER my total in positions (prior to settlement). Thus, I can see in one place I am not on margin and that my high interest MM's are there cranking out interest.

It's enough of a hassle factor that I am thinking of moving more of my "fixed" money to Fidelity. One thing stopping me is that Schwab's SWVXX is paying 5.24% vs. Fidelity SPAXX paying 4.97%. So that weighs in Schwab/Ameritrade's favor in terms of return on cash awaiting investment.

ETA: Some 5.5% non-callables have shown up this weekend.

 

[mickeyd]

Pretty hard to beat CRFMMF from VG at this time.

VMRXX
Vanguard Cash Reserves Federal Money Market Fund Admiral Shares
Management style

Active
Asset class

Money Market
Category

Taxable Money Market
Risk / reward scale

1
Less

More

Expense ratio

0.10%
as of 12/21/2022

7 day SEC yield

5.29%

C

 

[pb4uski]

Pretty hard to beat CRFMMF from VG at this time.

SVWXX is 5.24%. It is not worth putting up with Vanguard for 5 bps!

 

[pb4uski]

You are correct, and even though the balances shows "subject to margin", in my calling both Ameritrade and Schwab they ensured me that no margin would be charged (prior to settlement date).

It is still irritating, and I find Fido's setup much easier to keep track of, where they show it in balances as "Committed to open orders" (prior to the auction or CD locking) and then show the debit AFTER my total in positions (prior to settlement). Thus, I can see in one place I am not on margin and that my high interest MM's are there cranking out interest.

It's enough of a hassle factor that I am thinking of moving more of my "fixed" money to Fidelity. One thing stopping me is that Schwab's SWVXX is paying 5.24% vs. Fidelity SPAXX paying 4.97%. So that weighs in Schwab/Ameritrade's favor in terms of return on cash awaiting investment.

ETA: Some 5.5% non-callables have shown up this weekend.

Don't get me wrong... I find having to move money in and out of SWVXX because they will not let me designate SWVXX as my settlement account very irritating and I may ultimately move to Fidelity.

I was just responding to lawman's misinformation that you have to have money in your settlement account in order to place a buy. You can place a buy by phone, but not online and then sell SWVXX when it settles.

 

[ShokWaveRider]

SNAXX is 5.39%. No sarcastic comments please, we only have $300k in there.

 

[jldavid47]

Current best non-callable CD rates at Schwab:

12 mo - 5.50%
18 mo - 5.45%
24 mo - 5.30%
36 mo - 5.05%
48 mo - 4.80%
60 mo - 4.65%


The short end (<=36 months) rose by 5 basis points across the board since last week. 48 and 60 month maturities stayed the same.

 

[Tom52]

Current best non-callable CD rates at Schwab:

12 mo - 5.50%
24 mo - 5.30%
36 mo - 5.05%
48 mo - 4.80%
60 mo - 4.65%


The short end (<=36 months) rose by 5 basis points across the board since last week. 48 and 60 month maturities stayed the same.

Can you tell me how you are finding these CD rates that are non-callable. I am using Schwab and everything I see is callable.

 

[ShokWaveRider]

Can you tell me how you are finding these CD rates that are non-callable. I am using Schwab and everything I see is callable.

Try modifying your search and selecting "Non Callable".

 

[jldavid47]

Can you tell me how you are finding these CD rates that are non-callable. I am using Schwab and everything I see is callable.

I simply scroll down the list for a given duration until I find the first non-callable.

 

[erkevin]

Try modifying your search and selecting "Non Callable".

To add a little detail to this: Right above where it lists Schwab's Highest-Yielding CDs by Maturity, there is a blue hypertext link Find CDs. The 3rd section down on the Find CDs page, is "include only". There, is the box to click for "callable".