When the maturity date gets close, they send notification, and you decide what to do next online.
American Express Bank lets you enter maturity instructions at any time. Sends an email that you've made the change. If maturity is to close the account, the final statement comes by snail mail.
Alternative view: Banks are anticipating/seeing an economic downturn - they are worried about rising delinquency rates, rising credit card balances, and other issues (particularly for Gen Z). The net here (I believe) is that they are tightening their loan processes and seeing lessened demand for loans (on things like automobiles and some other high ticket items).
Ally Bank is good about easy modifications via their website but all the others I have to call.
There, I fixed it for you.
Agreed! I am grandfatheredThere, I fixed it for you.
Yep, best looking fixed income is SWVXX @ 5.15%. I guess I'll ride that for a while.
into SNAXX so 5.30% for us. I have a CD maturing on 9/23/2024, hopefully there will be something by then. Otherwise, I will look for a 3 year MYGA.
A very nice thing about brokered CDs is that they don’t automatically renew.
No - As mine mature it's just cash automatically added back in my account just waiting on me to decided what to do with it.
I did a ladder at FIDO and they auto renewed at the "best" rate. You can choose not to renew if I'm not mistaken.
What you did was to set up AutoRoll which is a service Fidelity offers. You have to select this service for any particular CD you purchase. And they choose different CDs and banks for the renewed CD, not the original one which is what a bank usually does. Fidelity makes it very easy to select yes or no for Autoroll.
Yeah I'm surprised 2 of my callables haven't been yet. They're kinda small but I don't think they are that specific to the size of them.
I'll bet everything over 5% will get called if it's callable.
I've got a lot in there and I'm holding on as long as I can! Gotta start looking for a place to keep fixed income in the interim.
The problem is that moves in money market rates lag the move in interest rates overall because they still have inventory that needs to roll off - in this case at relatively higher rates. Once that inventory rolls off, they will have to replace it with lower yielding paper which will begin lowering the interest rate they pay. If you are trying to decide whether to lock in for 6 months at, say, 5% or simply keep your cash in SWVXX currently yielding 5.14% the decision isn't that simple. Over the course of the next six months it is entirely possible (and maybe likely) that the average return on SWVXX will be LESS than 5% and you will find yourself with less money at the end.
Comprehensive plan? When the tide goes out, all boats go down. Remember 0% interest rates?
That’s why you have a plan. So you can move your boat.
