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

[lordjust]

Picked up a Barclays CD at Fidelity yesterday - 5.1% for 2 years, call protected. I would have preferred a 3 year, but didn’t find any paying 5% or greater.

https://www.ussfcu.org/resources/rates.html#smart-share-certificates

(APYs)

36 months $200,000 5.23%
$100,000 -$199,999 5.18%
24 months $200,000 5.28%
$100,000 -$199,999 5.23%

I could not see if these were call protected and they had some weird verbiage around "dormancy". Something to check if the numbers meet your needs. I thought i saw someone post this site previously .. but caught your inquiry about 3 years and thought i would throw it out there. again, i didnt look to closely at this one.

 

[Chuckanut]

I am now buying CDs mostly in the 5 year area. If that means I fall below the beloved 5% line, so be it.

Two recent exceptions: A three year CD to beef up that step of my ladder. And, an Ibond with the new fixed rate of 0.9%. Ibonds are essentially a variable maturity bond that I can call anytime in the next 30 years.

I only buy Federal government insured bonds/CDs. I also have equities and those have used up my ‘risk’ allocation. Nothing left for bonds.

The above should work well for me. YMMV.

 

[MarieIG]

I note that Navy Federal is NOT keeping pace with the current CD rates. They're stuck at around 4.55% and their terminology is out of sync with all other lenders.

]I have a 5% CD maturing in about 6 months. If their rates don't improve, I'm not going to renew it at NFCU. I'll move it into Fido where I have more control.

It occurred to me that I should be keeping my CDs in an IRA - and my IRAs are not at NFCU - so, when my CDs there mature - I will not renew, although I will keep at least a nominal amount of cash there.

 

[pb4uski]

I have been selling off short duration GSE's likely to be called in a few months to buy beaten up funds like Wellesley and Wellington that contain 40% and 60% bonds and to raise some capital to see where we go from here. If we see some blips like Montecfo has been doing, I'll be adding. Likely longer duration. Otherwise perfectly content getting 5% in money market.

What do you mean by "to raise some capital"... if you sell some short duration GSE's and have sales proceeds of $x and then buy $x of Wellesley and Wellington how is it that you raise capital?

 

[dobig]

What do you mean by "to raise some capital"... if you sell some short duration GSE's and have sales proceeds of $x and then buy $x of Wellesley and Wellington how is it that you raise capital?

More detailed explanation.

I was 34% in GSE's yielding 6.22 - 6.375% that would surely be called in a few months. Sold it all at a small profit plus accrued interest. Used half the proceeds to buy equal amounts of Vanguard Wellington and Wellesley and other half is now in Fidelity money markets awaiting opportunities but collecting 5% in the meantime.

 

[Phroig]

More detailed explanation.

I was 34% in GSE's yielding 6.22 - 6.375% that would surely be called in a few months. Sold it all at a small profit plus accrued interest. Used half the proceeds to buy equal amounts of Vanguard Wellington and Wellesley and other half is now in Fidelity money markets awaiting opportunities but collecting 5% in the meantime.

Wellesley is 38% equities, and Wellington about 66%, so effectively you moved 8-9% of your portfolio from bonds to equities. That changes your asset allocation significantly.

 

[dobig]

Wellesley is 38% equities, and Wellington about 66%, so effectively you moved 8-9% of your portfolio from bonds to equities. That changes your asset allocation significantly.

Before the move we were less than 20% equities. Trying to eventually move closer to a 50/50.

 

[pb4uski]

More detailed explanation.

I was 34% in GSE's yielding 6.22 - 6.375% that would surely be called in a few months. Sold it all at a small profit plus accrued interest. Used half the proceeds to buy equal amounts of Vanguard Wellington and Wellesley and other half is now in Fidelity money markets awaiting opportunities but collecting 5% in the meantime.

Got it now. I don't know how you can know that they will "surely be called in a few months". I have some of the same ~6+% GSEs. I'll take the 6+% coupon for as long as they are paying it. A call is possible but far from "sure" given that these issues are less than a year old and the Fed has raised rates since they were issued and they are currently trading at a slight discount.

 

[dobig]

Got it now. I don't know how you can know that they will "surely be called in a few months". I have some of the same ~6+% GSEs. I'll take the 6+% coupon for as long as they are paying it. A call is possible but far from "sure" given that these issues are less than a year old and the Fed has raised rates since they were issued and they are currently trading at a slight discount.

I'm too new to say with any degree of confidence how these things will play out. I just know for us I'm willing to give up a little short term gain to start locking in some longer term investments. I also realized after awhile with the callable GSE's I don't like the uncertaintanty with such a large concentration as we had. Once I get the majority of my core positions set I think I'll be able to play around a little bit more. Still getting a feel for all this but my longer term strategy is starting to come together.

 

[Nords]

@Nords had a not so good experience with PenFed, IIRC.

OTOH, I think PenFed used to be in the super group for great service and loans and CDs.

I had several bad experiences with PenFed over the years, especially compared to Navy Federal Credit Union and USAA Bank. We quit PenFed CDs in 2015 and ended our last loan with them (a HELOC) in 2017.

I think PenFed's higher CD rates came from cutting their customer-service payroll. I'm certain it's how they were able to offer lower mortgage rates in that customer-service department.

Their last straw with me was when I was managing my father's finances. They didn't even have a manager who understood the difference between a court appointment for a conservator versus a guardianship. The manager of the CD department didn't care about their ignorance because they just did what their lawyers told them they could do. Since the word "conservator" wasn't in their legal policy (only "guardian"), they wouldn't accept a conservator's court appointment to put any of my father's money in their CDs. And, of course, they weren't willing to talk with their lawyers.

These days we have checking accounts and a money-market account with NFCU, and we no longer invest in CDs. I'm about ready to cancel my USAA credit card, although we'll keep their auto insurance.

Our mortgage is with Chase and we'll let that amortization run through 2047, but their customer-service payroll appears to be defunded as well.

 

[teej1985]

I had several bad experiences with PenFed over the years, especially compared to Navy Federal Credit Union and USAA Bank. We quit PenFed CDs in 2015 and ended our last loan with them (a HELOC) in 2017.

I think PenFed's higher CD rates came from cutting their customer-service payroll. I'm certain it's how they were able to offer lower mortgage rates in that customer-service department.

Their last straw with me was when I was managing my father's finances. They didn't even have a manager who understood the difference between a court appointment for a conservator versus a guardianship. The manager of the CD department didn't care about their ignorance because they just did what their lawyers told them they could do. Since the word "conservator" wasn't in their legal policy (only "guardian"), they wouldn't accept a conservator's court appointment to put any of my father's money in their CDs. And, of course, they weren't willing to talk with their lawyers.

These days we have checking accounts and a money-market account with NFCU, and we no longer invest in CDs. I'm about ready to cancel my USAA credit card, although we'll keep their auto insurance.

Our mortgage is with Chase and we'll let that amortization run through 2047, but their customer-service payroll appears to be defunded as well.

USAA kill the above-average cashback on your Limitless card?

 

[d.davis]

USAA has certainly changed over the years, significantly this last decade. More of a profit center now.

Sent from my moto g power using Early Retirement Forum mobile app

 

[Nords]

USAA kill the above-average cashback on your Limitless card?

The bank has reduced the rewards (I think from 2% down to 1.50% or even 1.25%). Greater regulation and lower interchange fees have been squeezing those margins for years, but the most annoying part has been their fraud-alert and cancellation policy.

I've had the card since 1984 (nearly 40 years) but in the last few years it's been canceled twice and a replacement's been mailed out. The annoying part was that both times we were on slow travel-- and had sent in a travel notification-- and they mailed the replacement card to our home address. Then I'd have to call them and point out that we were having our mail held and wouldn't pick it up for another two months, so please mail the card to our location.

I'm simplifying my life to our Costco Citi Visa (and its rewards) with a NFCU Amex as a backup.

USAA has certainly changed over the years, significantly this last decade. More of a profit center now.

Not so much:
https://www.spglobal.com/marketinte...verses-amid-recent-regulatory-tumult-74176131

https://www.ksat.com/news/local/202...s-in-100-years-blames-inflation-weak-markets/

 

[pb4uski]

...I was 34% in GSE's yielding 6.22 - 6.375% that would surely be called in a few months. ...

Got it now. I don't know how you can know that they will "surely be called in a few months"...

I'm too new to say with any degree of confidence how these things will play out....

I get it now. The "would surely be called in a few months" in the first quote sounded pretty confident to me... I guess I misread it.

 

[ER604me]

I am thinking along the same lines since I am retired and age 66+ years old.
I would like to maintain a 5+% rate for 2-3 years which takes me to age 70 and SSI.

My approach too!

 

[njhowie]

Secondary market purchase, monthly payer, 3/15/2027 maturity, YTM=5.98%, callable 3/15/2024 YTC=8.69%, coupon=5.35%

 

[erkevin]

Secondary market purchase, monthly payer, 3/15/2027 maturity, YTM=5.98%, callable 3/15/2024 YTC=8.69%, coupon=5.35%

I think that you forgot some important information

 

[njhowie]

I think that you forgot some important information

CUSIP 64907LAM5

I have no idea why everything is converted to lowercase, but it happens periodically with some of my posts.

 

[RetiredAndLovingIt]

11-Month 7.23% APY CD Or 19-Month 6.43% APY CD

Sharing from depositaccounts.com

https://www.depositaccounts.com/banks/lewis-clark-cu/offers/

"A" Rated Credit Union
Washington and some Idaho states. This one won't last long but is this a sign of things to come

 

[Dtail]

Ally Savings rate upped 25 bps to 4.25%.

 

[ShokWaveRider]

Ally Savings rate upped 25 bps to 4.25%.

I know you are a smart Guy Dtail, so why would you put you cashish there when Schwab SWVXX is 5.06% and SNAXX is 5.21%?

 

[Dtail]

I know you are a smart Guy Dtail, so why would you put you cashish there when Schwab SWVXX is 5.06% and SNAXX is 5.21%?

Good question.
For most of my cash, I keep it in the Fidelity version of the Schwab account which currently yields 5.01%.
I bulk transfer a chunk of money every few months from Fidelity to Ally and then to BOA for monthly expenses.
The larger monies are kept in Fidelity, which are slated for investment purposes such as CD's. MYGA's, etc.
So there is a little loss of yield along the way. As to Schwab vs. Fidelity, that is a whole other conversation and I have been a Fidelity guy forever.

 

[ShokWaveRider]

Good question.
For most of my cash, I keep it in the Fidelity version of the Schwab account which currently yields 5.01%.
I bulk transfer a chunk of money every few months from Fidelity to Ally and then to BOA for monthly expenses.
The larger monies are kept in Fidelity, which are slated for investment purposes such as CD's. MYGA's, etc.
So there is a little loss of yield along the way. As to Schwab vs. Fidelity, that is a whole other conversation and I have been a Fidelity guy forever.

That makes perfect sense, just not the 4.25% bit.

 

[lucky penny]

Barclays online savings is at 4.35%.

 

[Montecfo]

CFG Bank HY savings account yields 5.17%.