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

[Lholzer]

Why is spaxx so much lower than vanguards money market

 

[audreyh1]

Why is spaxx so much lower than vanguards money market

Simply because the SPAXX expense ratio is much higher.

The SPAXX expense ratio is 0.42%.

The non-muni Vanguard MM fund expense ratios seem to run around 0.10%.

So that easily explains the ~0.32% difference.

Stated yield is always net of fees.

 

[stephenson]

Thanks, Audrey - had no idea they would be that different!

BTW - the last two 50K JPM 5.6 CDs closed this morning - neither are call protected. Will see how long it lasts.

I noted Fidelity SPAXX dropped to 4.97 this morning - at least the big banner number on the welcome page dropped from the 4.99 on Friday - my SPAXX still shows 4.99.

 

[Car-Guy]

I just noticed that Schwab's SWVXX is still holding at 5.25%.

Also, a reminder, for you folks that have money in SWVXX and similar holdings at Schwab, that usually pay interest on the 15th of each month. Payments in December are made on the last business day and not on the 15th.

FWIW

 

[aja8888]

I just noticed that Schwab's SWVXX is still holding at 5.25%.

Also, a reminder, for you folks that have money in SWVXX and similar holdings at Schwab, that usually pay interest on the 15th of each month. Payments in December are made on the last business day and not on the 15th.

FWIW

So if you are keeping track of monthly/annual interest on SWVXX, use 45 days for December.

 

[Car-Guy]

^^^^
Yes

 

[Maximus]

I just noticed that Schwab's SWVXX is still holding at 5.25%.

Also, a reminder, for you folks that have money in SWVXX and similar holdings at Schwab, that usually pay interest on the 15th of each month. Payments in December are made on the last business day and not on the 15th.

FWIW

Interesting. So if I sell 100k of SWVXX on the 13th of a normal month to purchase a cd do they prorate and give me 13 days of SWVXX interest on the 15th?

 

[Car-Guy]

Interesting. So if I sell 100k of SWVXX on the 13th of a normal month to purchase a cd do they prorate and give me 13 days of SWVXX interest on the 15th?

Nope, assuming you had money in SWVXX on the 15th of the previous month and sold it on the 13th of the next month they would typically credit you with either 28 or 29 days of interest depending on if the first month had 30 or 31 days in it.

Interest is paid from the 15th of 1 month to the 15th of the next. (Except in November/December it's paid from Nov 15th to the last day of December. If a payment date falls on a weekend or holiday, it's "typically" paid on the next business day.

 

[jldavid47]

Interesting CD available at Schwab this morning.

CROSS RIV BK TEANECK NJ 5.5% CD 11/28/2025 Callable
CUSIP: 227563EM1
Maturity Date: 11/28/25
Settlement Date: 11/30/23
First Call Date: 11/30/24
Interest Rate: 5.50%
Coupon Frequency: Monthly

Yes, it's callable, but not for 1 year. The current best non-callable 1-year CDs at Schwab are paying a 5.35% interest rate which makes this a good alternative to purchasing a 1-year CD. The best 2-year non-callable rate is down to 4.95%.

EDIT: This same bank is also offering maturities of 3, 4 and 5 years with the same terms and call date.

 

[Montecfo]

Interesting CD available at Schwab this morning.

CROSS RIV BK TEANECK NJ 5.5% CD 11/28/2025 Callable
CUSIP: 227563EM1
Maturity Date: 11/28/25
Settlement Date: 11/30/23
First Call Date: 11/30/24
Interest Rate: 5.50%
Coupon Frequency: Monthly

Yes, it's callable, but not for 1 year. The current best non-callable 1-year CDs at Schwab are paying a 5.35% interest rate which makes this a good alternative to purchasing a 1-year CD. The best 2-year non-callable rate is down to 4.95%.

EDIT: This same bank is also offering maturities of 3, 4 and 5 years with the same terms and call date.

Last sentence seems revealing.

 

[latexman]

Why is spaxx so much lower than vanguards money market

Simply because the SPAXX expense ratio is much higher.

There is a big convenience factor with Fidelity and SPAXX too. That explains the higher expenses. SPAXX is your core account AND it's a MMF that earns high rates. Not among the very highest, as discussed, but high nonetheless. So one does not have to sweep funds back and forth from their core account, which funds trades, to a high interest account, waiting on the next opportunity.

I'll take a little less for that convenience. In my Fidelity 401k, I use FIGXX which pays about 0.25% more than SPAXX.

 

[G-Man]

There is a big convenience factor with Fidelity and SPAXX too. That explains the higher expenses. SPAXX is your core account AND it's a MMF that earns high rates. Not among the very highest, as discussed, but high nonetheless. So one does not have to sweep funds back and forth from their core account, which funds trades, to a high interest account, waiting on the next opportunity.

I'll take a little less for that convenience. In my Fidelity 401k, I use FIGXX which pays about 0.25% more than SPAXX.

FIGXX is $1M minimum to invest. FZDXX has a slightly lower yield with $100k minimum to invest. Seems like the 2 best Fidelity Money Market funds based on yield.

 

[stephenson]

Interesting ... other than rate, pros and cons vs SPAXX?

Can't select either as core?

 

[Drake3287]

Synchroney Bank now offering a 5.65% 14 month CD until 12/4.

 

[latexman]

FIGXX is $1M minimum to invest.

Not in my company's 401k. There were no restrictions.

Also, my mistake, sorry. Back in Sept. our plan's MMF changed from FIGXX (ER 0.21%) to FRGXX (ER 0.18%). FRGXX is paying a 7 day yield of 5.28% PA today, and like FIGXX, no restrictions.

 

[G-Man]

Not in my company's 401k. There were no restrictions.

Also, my mistake, sorry. Back in Sept. our plan's MMF changed from FIGXX (ER 0.21%) to FRGXX (ER 0.18%). FRGXX is paying a 7 day yield of 5.28% PA today, and like FIGXX, no restrictions.

I wish we had a Money Market fund option in our 401k plan. Closest thing is an Interest Income fund from Goldman Sachs.

 

[jldavid47]

Current best non-callable brokered CD rates at Schwab (11/28/23):

12 mo - 5.35%
18 mo - 5.20%
24 mo - 5.10%
36 mo - 4.90%
48 mo - 4.75%
60 mo - 4.60%

In the past 2 weeks rates on brokered CDs at Schwab have tumbled along with bond rates - especially in the longer maturities:

12 mo - down 10 basis points
18 mo - down 30 basis points
24 mo - down 25 basis points
36 mo - down 30 basis points
48 mo - down 35 basis points
60 mo - down 45 basis points

 

[audreyh1]

Interesting. Since Synchrony is offering a 5.65% 14 month CD, looks like bank CDs are starting to beat brokered CDs.

 

[erkevin]

Thanks jldavid47. Looks like the curve on CDs is getting even more inverted and that the peak for longer-duration CDs has passed.

 

[Dtail]

Not in my company's 401k. There were no restrictions.

Also, my mistake, sorry. Back in Sept. our plan's MMF changed from FIGXX (ER 0.21%) to FRGXX (ER 0.18%). FRGXX is paying a 7 day yield of 5.28% PA today, and like FIGXX, no restrictions.

Good for you on the no restrictions, as the normal initial investment for FRGXX is 10 million.

 

[jldavid47]

Thanks jldavid47. Looks like the curve on CDs is getting even more inverted and that the peak for longer-duration CDs has passed.

I don't know if the peak is passed or if this is just a correction before the next move up in rates (like in March and April of this year). I'm just reporting on what is happening.

 

[Car-Guy]

Hopefully the next Fed meeting talking points in a few weeks, will give us a good idea of where rates are heading. Maybe.

 

[JC888]

Lets pray that fed is not done hiking and hikes continuously next few meetings.

 

[Car-Guy]

I'm guessing one more is possible in the next few meetings and that's a big maybe at this point. Cut's to start by mid summer I'm guessing. (Election year)

 

[stephenson]

I'm thinking they're done ...