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

[Drake3287]

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

Wishful thinking I'm afraid. A couple of the big names in finance such as BofA just yesterday announced that the June Fed meeting might be the first of several rate cuts. Unfortunately I tend to agree, especially with it being an election year.

 

[Montecfo]

Wishful thinking I'm afraid. A couple of the big names in finance such as BofA just yesterday announced that the June Fed meeting might be the first of several rate cuts. Unfortunately I tend to agree, especially with it being an election year.

I see cuts as a good thing. Bonds and stocks grow in value. Hopefully most of us extended maturities earlier.

I guess for folks who are mostly bonds it feels a bit like winter coming but having a more valuable bond portfolio seems a good thing all considered.

 

[pb4uski]

No way.

I would much rather see yields settle in around the current level and the war on savers end. If the real yield on 5 year CDs could settle in around 2-3%... so 4-5% nominal given the Fed's 2% inflation target that would be fine.

The low interest rates of the last 10 years were a ridiculous gift to corporate America.

 

[Montecfo]

No way.

I would much rather see yields settle in around the current level and the war on savers end. If the real yield on 5 year CDs could settle in around 2-3%... so 4-5% nominal given the Fed's 2% inflation target that would be fine.

The low interest rates of the last 10 years were a ridiculous gift to corporate America.

Well I see no reason for them to cut to zero now but the Fed never once hiked rates and then failed to cut. This is just the normal shape of the economic cycle.

And of course the "war on savers" kept the economy afloat and goosed equity returns for all of us which gave you a larger nestegg to go all bonds.

 

[pb4uski]

I'm ok with some modest cuts but I fear that Wall Street and corporate America are greedy and will pressure the Fed to go back to zero and the Fed may cave.

And yes, I personally benefitted from the low rates but realistically there was no other option with such low real rates.

 

[Montecfo]

I'm ok with some modest cuts but I fear that Wall Street and corporate America are greedy and will pressure the Fed to go back to zero and the Fed may cave.

And yes, I personally benefitted from the low rates but realistically there was no other option with such low real rates.

Well they did not cut to zero because "Wall Street and corporate America are greedy". It was that great financial crisis thingy.

And I agree Fed kept rates too low too long. But that was due to poor judgement, not pressure from business.

Not saying Wall Street is not greedy. Then again everyone wants to earn all they can don't they?

 

[aja8888]

I'm ok with some modest cuts but I fear that Wall Street and corporate America are greedy and will pressure the Fed to go back to zero and the Fed may cave.

And yes, I personally benefitted from the low rates but realistically there was no other option with such low real rates.

It may be time again to start moving some cash into the preferreds that have been brought down near their issue price.

 

[jw72]

It may be time again to start moving some cash into the preferreds that have been brought down near their issue price.

Can you please give me your top two preferred? TY

 

[Car-Guy]

All my remaining (12) CD's mature in 2024 pretty evenly spread thru the year. So far "this year" I've been sticking money from maturing CD's into SWVXX waiting to see what rates do. Heck SWVXX is still paying 5.25, so that's not bad, but I suspect that may start to drop soon. I'm also beginning to feel like we have peaked out in CD rates too. As I've said before, if I can get another few years of rates like they are now, I'll be happy.

So I'll be anxiously awaiting Powell's comments in a few weeks to decide if it is time to go all in now (again) or risk waiting a little longer. I'm beginning to think chasing a 1/4 to 1/2 point just ain't worth it. FOMO.

So I don't like buying 3+ year CD's (I like shorter terms) but I may buy some this time. Of course I can go all in now with my SWVXX dry powder at pretty good rates and rebuild my cash reserves next year as my 2024 CD's mature. Decisions, decision, decisions.

 

[aja8888]

Can you please give me your top two preferred? TY

I have not looked closely at preferreds since I sold all them off around the time interest rates started to climb in early 2022 or was it late 2021. I was capturing capital gains with those sales.

There is a thread here started by user MUlligan that is all about preferreds. Maybe take a peek at that.

Look at preferreds that have a cumulative dividend payment feature and are from great companies as a starter.

 

[pb4uski]

It may be time again to start moving some cash into the preferreds that have been brought down near their issue price.

Can you please give me your top two preferred? TY

I agree aja and have been tiptoeing back into variable rate preferreds trying to pick them up for $25 plus accrued dividend or less.

Current favorites are:

• Reinsurance Group of America RZC 6.71% yield BBB+
• Athene ATH/PRE 7.71% yield BBB
• Allstate ALL/PRB 8.74% yield BBB-
• MetLife MET/PRA 6.79% yield BBB-
• Citigroup C/PRJ 9.43% yield BB+
• Jackson Financial JXN/PRA 7.88% yield BB+

 

[Chuckanut]

No way.

I would much rather see yields settle in around the current level and the war on savers end. If the real yield on 5 year CDs could settle in around 2-3%... so 4-5% nominal given the Fed's 2% inflation target that would be fine.

The low interest rates of the last 10 years were a ridiculous gift to corporate America.

+1

The above is the pretty close to the norm for most of my life. 4-5% CDs, 6-7% mortgages, and inflation in the 2-3% area.

 

[audreyh1]

I think it takes things like the 2008 financial crisis, deflation (which we intermittently experienced for brief periods afterwards) or a global pandemic to create emergency reactions like dropping rates to zero. Before 2008 dropping rates meant dropping the Fed Funds rate to 3%.

 

[jazz4cash]

All my remaining (12) CD's mature in 2024 pretty evenly spread thru the year. So far "this year" I've been sticking money from maturing CD's into SWVXX waiting to see what rates do. Heck SWVXX is still paying 5.25, so that's not bad, but I suspect that may start to drop soon. I'm also beginning to feel like we have peaked out in CD rates too. As I've said before, if I can get another few years of rates like they are now, I'll be happy.

So I'll be anxiously awaiting Powell's comments in a few weeks to decide if it is time to go all in now (again) or risk waiting a little longer. I'm beginning to think chasing a 1/4 to 1/2 point just ain't worth it. FOMO.

So I don't like buying 3+ year CD's (I like shorter terms) but I may buy some this time. Of course I can go all in now with my SWVXX dry powder at pretty good rates and rebuild my cash reserves next year as my 2024 CD's mature. Decisions, decision, decisions.

This is baffling to me. I read this as arguing with yourself. If you really wish to get current rates for another few years all you have to do is extend maturities. Making a decision based on 1/4 pt change that has no direct impact on these proficts seems random. Are you averse to other fixed investments like bonds or MYGAs? You don’t like 3+ yr maturities but all your CDs are <12 months. Ladder, ladder, ladder.

 

[jazz4cash]

I agree aja and have been tiptoeing back into variable rate preferreds trying to pick them up for $25 plus accrued dividend or less.

Current favorites are:

• Reinsurance Group of America RZC 6.71% yield BBB+
• Athene ATH/PRE 7.71% yield BBB
• Allstate ALL/PRB 8.74% yield BBB-
• MetLife MET/PRA 6.79% yield BBB-
• Citigroup C/PRJ 9.43% yield BB+
• Jackson Financial JXN/PRA 7.88% yield BB+

How do these ratings work?
I bought a bond issued by Athene which was rated A by S&P. Is the scale different for preferreds or is the rating for the specific issue rather than the issuer?
Thanks

 

[pb4uski]

Yes and yes. The scale is different for preferreds because they are lower in the credit stack... they are generally 2 notches lower than debt. Athene's Senior Notes are rated A- by S&P... 2 notches lower would be BBB.

I personally think that 2 notches is a bit too much, but that is typical.

https://irathene.q4cdn.com/88688883.../2023/q3/ATH-Q3-2023-Financial-Supplement.pdf

page 11

 

[pb4uski]

...If you really wish to get current rates for another few years all you have to do is extend maturities. ... Ladder, ladder, ladder.

+1 A few weeks ago I helped a friend buy a 10-rung, 5-year CD ladder that yields 5.4% using money that was in SWVXX earning 5.25%.

 

[jazz4cash]

Thanks, pb. Very helpful.

 

[Drake3287]

I think it takes things like the 2008 financial crisis, deflation (which we intermittently experienced for brief periods afterwards) or a global pandemic to create emergency reactions like dropping rates to zero. Before 2008 dropping rates meant dropping the Fed Funds rate to 3%.

Agree and most of here won't be alive when if ever it returns to those near zero levels again. Unfortunately to many people now almost expect it to be the new norm.

 

[audreyh1]

Agree and most of here won't be alive when if ever it returns to those near zero levels again. Unfortunately to many people now almost expect it to be the new norm.

Well I tell you, the huge asset price run up in the face of those near 0% rates has reversed very little, so I suspect people are expecting rates to go much lower again.

 

[Chuckanut]

FYI

Ally is offering a short term 8 month CD at 5.25%.
It is NOT the no penalty CD.

 

[Tracer]

7.50 APY with PenFed up to $750 Savings Bonus offer

I just got an interesting offer in the mail from PenFed. They are offering a savings bonus of up to $750. Must make deposits on or before 12/30/23 into their Premium Savings account. Balance must be maintained from 12/30/23 to 4/30/24. You will receive a bonus of $150 for every $10,000 deposited (up to $50,000) at the end of the period.

Funds need to be in the account for four months, account earns a base rate of 3.0%. With the bonus this works out to be 7.50% APY. That’s better than current basic savings account rates or any short term CD and worth considering if you have lots of spare funds in cash currently and won't be needing it in the near furture. Your funds are totally liquid but you must keep the funds in the account until 4/30/24 to receive the bonus.

https://www.penfed.org/psvoffer2

 

[aja8888]

I just got an interesting offer in the mail from PenFed. They are offering a savings bonus of up to $750. Must make deposits on or before 12/30/23 into their Premium Savings account. Balance must be maintained from 12/30/23 to 4/30/24. You will receive a bonus of $150 for every $10,000 deposited (up to $50,000) at the end of the period.

Funds need to be in the account for four months, account earns a base rate of 3.0%. With the bonus this works out to be 7.50% APY. That’s better than current basic savings account rates or any short term CD and worth considering if you have lots of spare funds in cash currently and won't be needing it in the near furture. Your funds are totally liquid but you must keep the funds in the account until 4/30/24 to receive the bonus.

https://www.penfed.org/psvoffer2

Sounds good. But your existing balance in your account, plus the new funds must remain for the whole period to get the bonus. At least that's the way I read it.

 

[RunningBum]

Sounds good. But your existing balance in your account, plus the new funds must remain for the whole period to get the bonus. At least that's the way I read it.

The incoming transfer must also go directly to the online savings account. It specifically says it can't come from another PF account. It seems like you'd have to set up direct access from an outside account to this savings account, rather than transferring in to checking and then within PF transferring to savings.

 

[Dtail]

I just got an interesting offer in the mail from PenFed. They are offering a savings bonus of up to $750. Must make deposits on or before 12/30/23 into their Premium Savings account. Balance must be maintained from 12/30/23 to 4/30/24. You will receive a bonus of $150 for every $10,000 deposited (up to $50,000) at the end of the period.

Funds need to be in the account for four months, account earns a base rate of 3.0%. With the bonus this works out to be 7.50% APY. That’s better than current basic savings account rates or any short term CD and worth considering if you have lots of spare funds in cash currently and won't be needing it in the near furture. Your funds are totally liquid but you must keep the funds in the account until 4/30/24 to receive the bonus.

https://www.penfed.org/psvoffer2

Sounds good. But your existing balance in your account, plus the new funds must remain for the whole period to get the bonus. At least that's the way I read it.

Not only that, but in the fine print it states that it can take up to 60 days to receive the bonus and I believe then to be in good standing the account effectively must stay open for 6 months.
Thus the APY would really be 6%, which is still a nice 6 month return with no risk.