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

[Badger]

Is your 5.05% for the 2 year at Schwab correct?
You should be able to get 5.40% for 2 years non callable (at Fidelity).

The rates were as of 2 days ago when I went into the local Schwab branch and bought the 1 and 2 year CDs. I just looked at the website a couple of minutes ago and saw where the 1 yr non-callable CD rates were still a high of 5.5 but the 2 year CD rates had increased to 5.4. What a difference a day makes.

Cheers!

 

[Badger]

The rates were as of 2 days ago when I went into the local Schwab branch and bought the 1 and 2 year CDs. I just looked at the website a couple of minutes ago and saw where the 1 yr non-callable CD rates were still a high of 5.5 but the 2 year CD rates had increased to 5.4. What a difference a day makes.

Cheers!

I checked my account and the 2 yr CD I bought was 5.4%. I must have had another senior moment. Nice to know that it was in my favor.

Cheers!

 

[Tracer]

My current CD ladder consists of all bank CD's. I am considering another rung at the 5 year level. I'm considering a MYGA instead, which is basically a CD issued by an insurance company. The longer MYGA maturities (5 yrs and up) seem to be paying more than bank CD's. Some are yielding up to 6.15%. Unlike banks, earnings are tax deferred until the contract matures. In this higher interest environment, I'm wondering if anyone else is looking into these alternatives to get higher yields than the banks are offering.

 

[Dtail]

My current CD ladder consists of all bank CD's. I am considering another rung at the 5 year level. I'm considering a MYGA instead, which is basically a CD issued by an insurance company. The longer MYGA maturities (5 yrs and up) seem to be paying more than bank CD's, some are yielding up to 6.15%. Unlike banks, they are tax deferred until the contract matures. In this higher interest environment, I'm wondering if anyone else is looking into these alternatives to get higher yields than the banks are offering.

Can be somewhat more credit risk on the lower higher yielding MYGA's, plus early surrender penalties.
I do have some MYGA's for my mom, but sticking to brokered CDs for now.

 

[Tracer]

Can be somewhat more credit risk on the lower higher yielding MYGA's, plus early surrender penalties.
I do have some MYGA's for my mom, but sticking to brokered CDs for now.

I'm not worried about risk with an A rated company. Also, while not federally insured like bank and credit union CD's, MYGA's are regulated and insured at the state level.

 

[PatrickA5]

My current CD ladder consists of all bank CD's. I am considering another rung at the 5 year level. I'm considering a MYGA instead, which is basically a CD issued by an insurance company. The longer MYGA maturities (5 yrs and up) seem to be paying more than bank CD's. Some are yielding up to 6.15%. Unlike banks, earnings are tax deferred until the contract matures. In this higher interest environment, I'm wondering if anyone else is looking into these alternatives to get higher yields than the banks are offering.

Ibexis (A-) is offering a 5 year MYGA 6.45% Simple Interest. I think this is more for people looking to have interest paid out monthly. It would basically equate to a CD that paid monthly. A good rate if you know you won't touch the money for 5 years.

https://myannuitystore.com/ibexis-myga-plus-annuity/

 

[jldavid47]

Current best non-callable brokered CD rates at Schwab (10/31/24):

12 mo - 5.50%
18 mo - 5.50%
24 mo - 5.40%
36 mo - 5.15%
48 mo - 5.05%
60 mo - 5.05%

The CD yield curve continues to flatten slowly. Maturities less than 2 years have stayed steady while those two years and longer continue to rise.

 

[finvest2]

Ibexis (A-) is offering a 5 year MYGA 6.45% Simple Interest. I think this is more for people looking to have interest paid out monthly. It would basically equate to a CD that paid monthly. A good rate if you know you won't touch the money for 5 years.

https://myannuitystore.com/ibexis-myga-plus-annuity/

It took a minute to dig it up, here's their latest pdf with the rates: https://static1.squarespace.com/sta...907146227/Ibexis_RateSheet_092823_Banding.pdf (found on https://ibexis.com/myga-plus)

6.45% seems like it would beat anything else with a 5 year term, I wonder how they're offering this? I guess some corporate bonds probably pay about that rate, which is maybe more comparable since there's no FDIC insurance.

 

[PatrickA5]

It took a minute to dig it up, here's their latest pdf with the rates: https://static1.squarespace.com/sta...907146227/Ibexis_RateSheet_092823_Banding.pdf (found on https://ibexis.com/myga-plus)

6.45% seems like it would beat anything else with a 5 year term, I wonder how they're offering this? I guess some corporate bonds probably pay about that rate, which is maybe more comparable since there's no FDIC insurance.

Keep in mind that most MYGAs compound. This particular one pays simple interest. I think it's designed for people that want to have periodic withdrawals - probably monthly interest.

 

[Badger]

Current best non-callable brokered CD rates at Schwab (10/31/24):

12 mo - 5.50%
18 mo - 5.50%
24 mo - 5.40%
36 mo - 5.15%
48 mo - 5.05%
60 mo - 5.05%

The CD yield curve continues to flatten slowly. Maturities less than 2 years have stayed steady while those two years and longer continue to rise.

I will have a chunk of money to invest in a 4 or 5 year CD by mid December so I hope the rise for those will continue.

Cheers!

 

[CatinKS]

Somewhat off topic but applies to CD's and thought this might be the best place to ask. With the higher CD rates I asked my brick-and-mortar financial credit union if they could do withholding on my CD's. They declined and said they do for IRA accounts, but not standard accounts. Has anyone else had a bank agreeable to doing?

 

[erkevin]

Somewhat off topic but applies to CD's and thought this might be the best place to ask. With the higher CD rates I asked my brick-and-mortar financial credit union if they could do withholding on my CD's. They declined and said they do for IRA accounts, but not standard accounts. Has anyone else had a bank agreeable to doing?

I would not want my bank to withhold taxes. Unlike my brokered CDs, my bank CDs compound interest, therefore increasing the yield. If the bank withholds taxes, I lose out.

 

[Car-Guy]

I will have a chunk of money to invest in a 4 or 5 year CD by mid December so I hope the rise for those will continue.

Cheers!

You might get a better idea of what rates will be doing in the near future after Powell speaks tomorrow.

 

[MarieIG]

Somewhat off topic but applies to CD's and thought this might be the best place to ask. With the higher CD rates I asked my brick-and-mortar financial credit union if they could do withholding on my CD's. They declined and said they do for IRA accounts, but not standard accounts. Has anyone else had a bank agreeable to doing?

No, not yet. I had asked at one of my brokerages and they didn't withhold taxes in taxable accounts (although presumably they would do so at the request of the IRS).

 

[check6]

You might get a better idea of what rates will be doing in the near future after Powell speaks tomorrow.

Wasn't what I had hoped. My CU is still offering 5.40% for a 12 mth CD compounded quarterly if less than $100,000, monthly if above. May purchase more now with no Fed rate increase.

 

[CatinKS]

I would not want my bank to withhold taxes. Unlike my brokered CDs, my bank CDs compound interest, therefore increasing the yield. If the bank withholds taxes, I lose out.

Thanks, makes sense.

 

[ShokWaveRider]

Not too sure where to put this, as a MYGA is a CD equivalent with an insurance company.

Athene (A Rated = Excellent by AM Best) is paying 6.1% for 5 years with free interest withdrawals once a year for the duration. $250k guarantee by most states.

 

[Bruno]

Keep in mind that most MYGAs compound. This particular one pays simple interest. I think it's designed for people that want to have periodic withdrawals - probably monthly interest.

I saw this at BH and was thinking WOW , but not sure now being able to get FREE 10% withdrawls you could do this with most MYGA that are getting compound interest.

 

[jazz4cash]

I'm wondering if anyone else is looking into these alternatives to get higher yields than the banks are offering.

I am a big fan of MYGA. Hope we are not punished for discussing an annuity in this thread. I have been looking at Canvas MYGA 5 yrs@6.5%. It’s sold directly by a subsidiary of B++ Puritan Life. It won’t show up at broker sites like Blueprint. Now I will consider the A rated Athene product mentioned above (Thanks).

 

[pb4uski]

Not too sure where to put this, as a MYGA is a CD equivalent with an insurance company.

Athene (A Rated = Excellent by AM Best) is paying 6.1% for 5 years with free interest withdrawals once a year for the duration. $250k guarantee by most states.

There is an Athene bond (CUSIP 04686JAA9) maturing on 1/12/2028 and call protected through 10/12/2027 (make whole call) that yields 6.45% (4.15% coupon selling at 91.556 ask). Unlikely to be called given lower coupon rate. Slightly more credit risk because no guaranty association protection, but also no limitations on liquidity.. if you need the money you just sell all or part of your bond holdings.

Not recommending, just observing.

 

[JoeWras]

I am a big fan of MYGA. Hope we are not punished for discussing an annuity in this thread. I have been looking at Canvas MYGA 5 yrs@6.5%. It’s sold directly by a subsidiary of B++ Puritan Life. It won’t show up at broker sites like Blueprint. Now I will consider the A rated Athene product mentioned above (Thanks).

Ha ha, I don't think you'll get punished. There is a MYGA thread though: https://www.early-retirement.org/forums/f28/does-anyone-here-use-a-myga-for-income-119597.html

My dad was put into these when rates cratered in the late aughts. When rates were below 2, his was paying at 5. My siblings and I inherited it and had to absorb the interest gained. Luckily, on inheritance, they offered for me to let it ride for 5 years (one of many options). I knew I'd retire in year 5, so it worked perfectly to drop all that deferred income. On that renewal, it was making in the 3's, which wasn't bad because CD rates were still below 2.

 

[PatrickA5]

I saw this at BH and was thinking WOW , but not sure now being able to get FREE 10% withdrawls you could do this with most MYGA that are getting compound interest.

I've had an MYGA before, but didn't take out the 10%. I'm not sure if any of that 10% is considered interest - which is normally deferred in a MYGA. Mine was inside an IRA, so it didn't matter.

I assume if one takes monthly interest payments, there is no deferral of interest. Seems obvious, but I haven't asked how interest works when withdrawing money from an MYGA.

Rates look good on these at this point.

 

[PatrickA5]

Not too sure where to put this, as a MYGA is a CD equivalent with an insurance company.

Athene (A Rated = Excellent by AM Best) is paying 6.1% for 5 years with free interest withdrawals once a year for the duration. $250k guarantee by most states.

By "free interest withdrawals" I assume you're referring to no surrender fees? I also assume you'd have to pay taxes on the interest since none of it would be deferred.

I guess inside a qualified plan, it doesn't really matter until you make an actual distribution.

 

[ShokWaveRider]

By "free interest withdrawals" I assume you're referring to no surrender fees?

I guess inside a qualified plan, it doesn't really matter until you make an actual distribution.

Yes, & Yes.

It is just I am struggling as we are at the point where we have enough cash and IRAs to last us, but I am looking for an income stream for the rest of our days that does not include losing it if we cark it (I.E. SPIA). I may have to break down and have to hire and advisor ...... God forbid.

A discussion for another thread.

 

[jazz4cash]

By "free interest withdrawals" I assume you're referring to no surrender fees? I also assume you'd have to pay taxes on the interest since none of it would be deferred.



I guess inside a qualified plan, it doesn't really matter until you make an actual distribution.

Free withdrawals does refer to lack of surrender charge. I am sure taxes will be due on interest but maybe someone can tell us if withdrawals consist of principal only or a combination. I’ve taken the 10% free withdrawal to buy a higher rate contract but it was IRA money. The details around withdrawal of interest is opaque. Currently the provider I am using reduced the free withdrawal to 5%. In addition to the hefty surrender charge many MYGAs assess a market value adjustment based on the difference between the contract rate and current rates