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

[erkevin]

Seems like the Fed rate hikes are over. I’m starting to lock in longer CD’s. I put some $ into a 36 month 4.65% CD yesterday.

I grabbed a WF 3-yr at 4.65% also. It's the last of my dry powder for awhile as I dont have any CDs maturing until October, 2024. The million dollar question is what will market conditions be like then? Will fixed income products still be attractive?

 

[erkevin]

I grabbed a WF 3-yr at 4.65% also. It's the last of my dry powder for awhile as I dont have any CDs maturing until October, 2024. The million dollar question is what will market conditions be like then? Will fixed income products still be attractive?

I take that back. I just checked my ladder; I have a couple of rungs of callable CDs that are at 5+%. Not sure they will survive 2024.

 

[Car-Guy]

I'll decide if I want to buy/build another CD ladder this week or defer a while longer after I hear what Powell says tomorrow afternoon.

 

[Car-Guy]

Ok, after hearing Powell speak today, it sounds like they are done raising rates for this cycle. Still unclear when, how fast or how often rate cuts are coming but "my take" is they may be coming a little sooner than I had thought recently. Maybe as early as March. So, I guess I'll start building a new ladder over the next few weeks to lock in some of the better rates.

 

[aja8888]

Ok, after hearing Powell speak today, it sounds like they are done raising rates for this cycle. Still unclear when, how fast or how often rate cuts are coming but "my take" is they may be coming a little sooner than I had thought recently. Maybe as early as March. So, I guess I'll start building a new ladder over the next few weeks to lock in some of the better rates.

I think now that rates are going to be taken down, I'm going to put some taxable money in a municipal bond fund and ride the NAV up when rates fall.

 

[Drake3287]

They announced that they could foresee 3 rate drops in 2024. I'm still sticking closer to the June meeting dare. They'd have a tough time explaining those rate cuts if things went south too soon.

 

[COcheesehead]

The denial of rate decreases on this forum is palpable.

 

[Romer]

Schwab has (Likely others) a JPMorgan 1 year CD at 5.35% callable no earlier than June 26th. There are others at 5% non callable

 

[Montecfo]

I've mentioned a few times from memory that since 1970, the average time from last Fed hike to first Fed cut is 8-9.months.

Last hike was in July.

 

[Gotadimple]

American Express Savings announced a rate increase on its high yield savings account effective today from 4.30% to 4.35%. A look at CD rates shows
11 month CD - 5% APY
12 month CD - 4.25% APY
24 month CD - 4.5% APY

 

[Al18]

Barclays CD rates are very good, compared to other large banks
CD rates
Term Interest Rate APY
12 Month CD 5.26% 5.40%
18 Month CD 5.12% 5.25%
24 Month CD 4.78% 4.90%
36 Month CD 4.40% 4.50%
48 Month CD 4.35% 4.45%
60 Month CD 4.40% 4.50%

 

[John Galt III]

Rates have to hold at least until Jan, 2024. That's when all my Penfed CD's mature, lol.

 

[John Galt III]

Lot's new talk here regarding these 9 month CD's in the 5%+ range but unfortunately almost know one's looking for such a short term CD simply because rates will be dropping 6 to 9 months. Longer term the better at this point, even if it comes with a slightly lower rate.

Agree. I have some cabbage maturing in Jan, 2024. I plan to put half into 4 or 5 year, and the rest into some combo of the other terms.

 

[Another Reader]

Just opened a one year Marcus CD at 5.50 percent. Treasury yields are dropping rapidly.

Also a 5.55 percent 15 month at Sallie Mae. Already have accounts at both institutions.

 

[copyright1997reloaded]

Agree. I have some cabbage maturing in Jan, 2024. I plan to put half into 4 or 5 year, and the rest into some combo of the other terms.

I am scraping the bottom of the barrel in terms of MM funds in my IRA that can be used for anything (only about 20K at the moment). I do have things maturing almost every week but am limited to what i can deploy, unless I flip some of the 1-year T-Bills I bought earlier (e.g. Aug-Nov 24).

In my regular account, I do have more $ in MM, but I've kept that short as I might be moving this coming year and want to have cash available (e.g. home purchase).

 

[Car-Guy]

I decided to quit far*&^g around for .1 or .2 points so I'm going to build another short term CD ladder. Sold most of my SWVXX today and will buy a bunch of new short term 9 to 18 mo CD's tomorrow. I got a bunch more maturing in 1q24 and will decide then how to add to this new ladder.

 

[Drake3287]

I've mentioned a few times from memory that since 1970, the average time from last Fed hike to first Fed cut is 8-9.months.

Last hike was in July.

In this case the Feds repeatedly said yesterday that they still intend to reach the 2% inflation rate next year. If that's the case then mid 2024 will be the start of rate drops. Reaching anywhere near this magic 2% number is still a ways off based on the current rate it's dropping.

 

[GenXguy]

In this case the Feds repeatedly said yesterday that they still intend to reach the 2% inflation rate next year. If that's the case then mid 2024 will be the start of rate drops. Reaching anywhere near this magic 2% number is still a ways off based on the current rate it's dropping.

Next year? I read they don't expect to hit the 2% target until 2026, so for the year of 2026, meaning year end of 2026. That's a full 3 years away.

https://www.cnbc.com/2023/12/13/fed-interest-rate-decision-december-2023.html

Fed officials see core inflation falling to 3.2% in 2023 and 2.4% in 2024, then to 2.2% in 2025. Finally, it gets back to the 2% target in 2026.

 

[Marc]

Since MM rates are based on short end of curve I don't see any decrease in my 5.21% MM rate until cuts actually start; I think I will stop buying 6 month Treasuries and stay with MM.

Marc

 

[Car-Guy]

I decided to quit far*&^g around for .1 or .2 points so I'm going to build another short term CD ladder. Sold most of my SWVXX today and will buy a bunch of new short term 9 to 18 mo CD's tomorrow. I got a bunch more maturing in 1q24 and will decide then how to add to this new ladder.

Well I was able to re-buy/re-build this morning but "pickins" were as slim as I can remember seeing them in the past two years. Some of what I bought in the past hour are already no longer available, at least at Schwab. (So it's really become more like Slim Pickens)

 

[aja8888]

Well I was able to re-buy/re-build this morning but "pickins" were as slim as I can remember seeing them in the past two years. Some of what I bought in the past hour are already no longer available, at least at Schwab. (So it's really become more like Slim Pickens)

I just bought into the next Schwab 6 month T Bill auction this morning (12/18). I had available cash in my IRA and didn't see any CDs that would interest me.

I'm done for the year with fixed income buying.

 

[Car-Guy]

I just bought into the next Schwab 6 month T Bill auction this morning (12/18). I had available cash in my IRA and didn't see any CDs that would interest me.

I'm done for the year with fixed income buying.

Me too. Less than 50k in dry powder remaining anyway so I'm done for the year.

 

[aja8888]

Me too. Less than 50k in dry powder anyway so I'm done for the year.

My dry powder in the IRA is $259.50. The brokerage account has more, but I need it to pay a few bills.

 

[Car-Guy]

My dry powder in the IRA is $259.50. The brokerage account has more, but I need it to pay a few bills.

I did that earlier too. I over invested and didn't leave out enough to "live" like I want. It took a few+ months to get re-balance (maturing CD's) and I'm not going to do that again. I really don't like to gamble on margin

 

[Chuckanut]

I have spent the past three months beefing up the longer term steps on my ladder with CDs in the area of 5%. So, like many, until something matures, my supply of dry powder is minimal.