Best CD, MM Rates & Bank Special Deals Thread 2024 - Please post updates here

[jazz4cash]

Comprehensive plan? When the tide goes out, all boats go down. Remember 0% interest rates?

When the tide goes out my CD and bond boats don’t go down cause they are locked in noncallable. I’m still only buying MM funds for liquidity. I’ll take 4ish% for 5 yrs over a 5% MM or 12 month CD. Plus, I like MYGAs which are still 5.5ish for 5-6 yrs.

 

[aja8888]

When the tide goes out my CD and bond boats don’t go down cause they are locked in noncallable. I’m still only buying MM funds for liquidity. I’ll take 4ish% for 5 yrs over a 5% MM or 12 month CD. Plus, I like MYGAs which are still 5.5ish for 5-6 yrs.

I'm also starting to think locking 4% over the next 5 years is a great idea. I have several T Bills and CD's maturing later this month and next.

 

[Car-Guy]

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.

Simply parking your money in what is currently yielding the most can cost you over time. Having a comprehensive fixed income plan that you can stick to is a better idea. Does that mean the plan should never change? Of course not, but the planning exercise will help hone your judgment.

 

[audreyh1]

I'm also starting to think locking 4% over the next 5 years is a great idea. I have several T Bills and CD's maturing later this month and next.

This might go against your simplification plan?

 

[jldavid47]

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.

Exactly. I'm already figuring out how to move my boat. However, the probability of rates going back to zero is almost zero.

 

[jazz4cash]

Pain sets in well above zero.

 

[aja8888]

This might go against your simplification plan?

I have been buying the CD's and treasuries in small dollar increments during the last few years, building a so-called ladder of maturities. They are now rolling off monthly (ending in 2026 or so) and my thought would be to lock up a few 5 year, 4% instruments in $250K amounts (keep within FDIC insurance limits). That would simplify the steady fixed income part of the simplification plan for 5 years. By then, if I am still alive (or coherent), I would re-evaluate the fixed income alternatives. Realistically, it's hard to make steady 4% in any bond fund without taking on a lot of risk.

 

[aja8888]

Exactly. I'm already figuring out how to move my boat. However, the probability of rates going back to zero is almost zero.

True, but 2% is not out of the question. Heck, some banks are still paying 0.01% on deposited funds!

 

[Chuckanut]

True, but 2% is not out of the question. Heck, some banks are still paying 0.01% on deposited funds!

And I assume you, me ,and the rest if this enlightened group are not being taken to the cleaners by these way, way, way below market rates.

 

[explanade]

So looks like rates are already down into the 4-4.5 range for 1 year, call protected, on Fidelity.

Anyone else seeing different?

 

[Car-Guy]

Nope, Schwab has been hanging about 4.2 to 4.3 for 1yr CD's for several weeks now. That's down a full point in the past couple of months. If the FED starts cutting in Sept (as I expect) we'll see 1yr CD rates drop below 4 by early Oct.

 

[Chuckanut]

Those 5%+ one year CDs from a few weeks back are looking mighty good.

 

[Another Reader]

I missed one and it autorenewed at 4.93 percent. Guess I won't complain...

 

[Dash man]

I missed one and it autorenewed at 4.93 percent. Guess I won't complain...

I just took some money from a matured treasury bill out of Schwab and moved it into Citadel FCU for a one year 4.9% CD.

 

[Surewhitey]

DW got a 5 yr CD at Marcus @ 4%. Got a feeling it'll be our last 4%-er. Been stashing a boatload in MM until a better option presents itself.

 

[Another Reader]

Just opened another 4 month stopgap at Wells Fargo with the 5.01 percent relationship rate. Not much else out there over 5 right now...

 

[xlf11]

Discover 5.1% for 9 months CD and CIBC 5.11% for the same term.

 

[Another Reader]

Thanks for the Discover tip! Just opened a CD.

 

[Car-Guy]

Almost hate to buy a 1yr jumbo CD for 4.25 when I'm getting 5.1 on the same money in a MM. But, I don't think the MM rates are going to last much longer. Heck that's a >2k difference over a year per 250k. (If MM rates were to hold) Oh, well, it's all timing. I guess I buy another in the next week or two, just ahead of the FED's rate cut. Been a nice ride the past two years.

 

[Drake3287]

Yep, we all feel your pain! I have a jumbo CD renewing 3 days after next months projected interest rate drop. You know darn well the CD rates will drop within 24 hours of the announcement. Funny how when rates go up it take weeks for CD rates to increase while interest rate drops are almost instant.

 

[Hyper]

For once, we're kinda in front of a possible drop. Just did a substantial ladder today. Lowest rate was 3.85. Not great but blessed to get that!

 

[Momcpa]

Got a 30 month at 4.5% at our credit union Wednesday. I felt good with that.

 

[Chuckanut]

I recently purchased a two year CD for 4%. Interestingly, it matures about the same time as a five year CD I bought a while ago that is also yielding 4%.

I recall being quite happy to catch that 4% yield a few years ago. That helps to put things into perspective.

 

[Happyras]

short comment;
I am not in a rush to invest 5 years at 4% in any CD, Since this thread is focused on MM and CD's, I apologize for the diversion, but I really think the banks have the edge when you lock into their CD. You have same day liquidity with a T-bill. At the first of the year, I did buy in to the Marcus 12 month 5.5%APR CD's, looking back I see that was OK, but could have done better with 100K invested in Agency notes.

Available for comment, the long version for those interested in why;

 

[Drake3287]

Early withdrawal penalty also plays into longer term CD's. Of the 6 jumbo CD's I have, all 6 of them have different penalty terms. Ally for example is only 60 days interest.