- Joined
- Apr 14, 2006
- Messages
- 23,150
New year, new thread.
You are absolutely correct, as usual. In addition, since MM rates can change frequently during a month, it's hard to know exactly how much you'll make in any given month. (If you really care to try and calculate it that close.)MM funds pay out dividend distributions based on your days in the fund. You can’t pull that trick.
If you sell before the end of the month you’ll be paid dividends immediately up to that date. If you buy during the month you’ll be paid a smaller amount than you would be for a whole month like a bank savings account does.
Ally Bank savings account: paying 3.3%
Deal Summary: 12-month CD, 6.00% APY, $10k minimum deposit, new money.
Availability: 19 Central Iowa counties
Advantage Credit Union (Advantage CU) is starting 2023 off with a “New Year Savings Spectacular” – a limited-time 12-month CD earning 6.00% APY. (This is definitely a rate milestone: the last time I wrote about a 6% APY was 2008 and it was offered on a 60-month CD.)
https://www.depositaccounts.com/banks/advantage-cu-ia/offers/
Over the past holiday weekend, Schwab only had one brokered CD available... This morning most maturities are available again (as we expected) They are still inverted (example, 1yr is 4.35% and 5 is only 3.75%). Personally, I still expect rates to climb a little more (bit by bit) and to remain inverted, most of the year.
^^^^
5%+ is what many of us want... I think if JP raises rates another 1/2 point on ~Feb1 we will see it soon after. Just 1/4 and maybe not.
Of course 4.6 and 4.7 that we can get at Schwab today is pretty close.
I wouldn't buy any CD's that are not insured by the FDIC. I don't recall even seeing any that were not covered.5% + FDIC is what we want.
And state tax free.
And a cookie.
Well the new year has commenced, and I am still patiently waiting for a non-callable 5% rate for 5 years. Crazy. Ha!
^^^^
5%+ is what many of us want... I think if JP raises rates another 1/2 point on ~Feb1 we will see it soon after. Just 1/4 and maybe not.
Of course 4.6 and 4.7 that we can get at Schwab today is pretty close.
I think it's the 5 years that is pretty iffy. Short-term CDs at 5% are pretty likely this year. But, I think I'd rather keep my money available in my money market settlement account than buy very short-term CDs.
And state tax free.