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

[Chuckanut]

I remember those who waited when we saw 5 year CD rates at 5% and more. What if the rates went even higher? But, they didn’t and those who missed out on the higher rates had to settle for less at the same term.

We may now have a similar situation going the opposite way. The FED seems geared up to lower rates later this month. Meanwhile people are buying MM accounts and short term CDs that are still over 5%. Will they get stuck when rates come tumbling down? Will we see rates in the mid to high 4% area on 2-5 year CDs, non callable again? They are already getting hard to find.

I have a feeling that a year from now a 3 year 4+% non callable CD will look very good. Longer term non callable CDs at 4% or more are getting harder to find, based upon my recent searches.

YMMV.

 

[Car-Guy]

Well FOMO got me "again" yesterday and "on impulse" I dumped "almost all" of my spare cash in to several ~4.5% CD's. And I "did it again ," I only kept out 40 to 50k in cash to make it to year end. Makes me feel like I'm living below the poverty line.

 

[audreyh1]

Ha ha. Cash flow - what’s that?

If it was really your “spare cash” then no problem!

 

[Car-Guy]

The problem is I'm now fully invested in things that are "not so instantly liquid" and just having 40 to 50k for the next several months sort of crimps my style. But, that's really a good thing for me.

 

[audreyh1]

The problem is I'm now fully invested in things that are "not so instantly liquid" and just having 40 to 50k for the next several months sort of crimps my style. But, that's really a good thing for me.

Well then I guess some of that cash wasn’t really spare.

 

[Car-Guy]

From my POV any cash I don't need or have plans for in the near term (~6 to 12mos) is spare. If a real need (emergency) arises, I have plenty of invested money to tap within a few days/weeks penalty free. (e.g. 401k)

 

[John Galt III]

Started the process of deciding how much to move out of money market at around 5% to 4 or 5 year CD's, to lock in before the probably soon decline in CD rates, . Already moved $10,000 from MM into a 5 year 3.95% APY jumbo CD at a credit union.

Have to decide what to with about $30,000 more in MM. Maybe move it into another 3.95% CD at same cred union.

 

[erkevin]

Like others here, I have rungs in my ladder maturing soon. $50k next month and $300k in the 1st quarter of 2025. I will be following this thread closely for good ideas in the coming months

 

[Chuckanut]

Started the process of deciding how much to move out of money market at around 5% to 4 or 5 year CD's, to lock in before the probably soon decline in CD rates, . Already moved $10,000 from MM into a 5 year 3.95% APY jumbo CD at a credit union.

Have to decide what to with about $30,000 more in MM. Maybe move it into another 3.95% CD at same cred union.

The last time I checked a few days ago, Marcus is offering 3 year CDs at 4.1%. That is/was their best CD rate over 6 months.

 

[jazz4cash]

Started the process of deciding how much to move out of money market at around 5% to 4 or 5 year CD's, to lock in before the probably soon decline in CD rates, . Already moved $10,000 from MM into a 5 year 3.95% APY jumbo CD at a credit union.

Have to decide what to with about $30,000 more in MM. Maybe move it into another 3.95% CD at same cred union.

Umm…rates have been moving down for awhile now. That’s actually a great rate from what I’m seeing. I am also sticking with longer maturities in spite of the sweet spot being 1-3 yrs. I realize that I am lucky to have stumbled into a raggedy ladder with tiny uneven steps. Reinvesting at reduced rates is less painful but next year I’ll have a big chunk.

 

[pb4uski]

I just received a call notice for Sept 13 on a 6.38% FHLB bond that I bought in Nov 2022, so it was good while it lasted. I've identified a couple agency bonds in the 5.25% range and a couple A/BBB+ corporate bonds in the 5.6-6.0% range as replacements. The replacements are all 2027 maturities that fit a gap in my ladder.

While they are all callable I'm thinking that the call risk is lower because there are 4 bonds rather than 1 bond and that the chance that all 4 get called is lower than the chance of a single bond being called, but what do I know.

 

[audreyh1]

I’m really curious to see if my only JP Morgan callable CD gets called in November. First call date was out 6 months so I decided it was OK as my other options were 6 months anyway.

 

[njhowie]

I’m really curious to see if my only JP Morgan callable CD gets called in November. First call date was out 6 months so I decided it was OK as my other options were 6 months anyway.

JPM has been calling everything...even with just one month until maturity if it's above 5.3%.

 

[audreyh1]

Wow, well I expected they would call it in Nov. it was still my best new release option at the time.

 

[njhowie]

While they are all callable I'm thinking that the call risk is lower because there are 4 bonds rather than 1 bond and that the chance that all 4 get called is lower than the chance of a single bond being called, but what do I know.

In a partial call situation, they are individually selected at random. So your view makes sense. You can work out the statistics behind it if you know what percentage of the outstanding are being called.

 

[pb4uski]

^^^ good point that I hadn't thought of.

 

[jazz4cash]

JPM has been calling everything...even with just one month until maturity if it's above 5.3%.

Yeah they called my 5.4 due in December. It was only 12 months to begin with.....those are usually not callable and I prolly didn't bother to check.

 

[Cat-tirement]

I received notice that a Toronto Dominion 6.35% bond is being called on Sep 16 (not surprised). I hope to be able to grab something else before further drops following next week’s anticipated fed rate cut. I’m watching a few things hoping they will still be available and not drastically dropped in yield before the call settles.

 

[Chuckanut]

From what I have seen the banks have already baked an interest rate cut into bond and CD rates.

 

[TickTock]

Just had some agency (Federal Home Loan Banks) 5.42% bonds due in 12/28 in the taxable account called. Not surprising. Also not too sad, as I'm finding I prefer to have more in the MM now that we're both fully retired; perhaps later on I'll get comfortable with less. VMFXX is currently yielding 5.21% and it's easier to keep it there with the yield curve inverted.

 

[Livefree]

I purchased a 6 month non-callable CD @ Fidelity paying 4.7% a few days ago.

 

[NomDeER]

I've just had a couple of bonds called as well. I guess I should buy a CD before the CD rates fall even further.

While they are all callable I'm thinking that the call risk is lower because there are 4 bonds rather than 1 bond and that the chance that all 4 get called is lower than the chance of a single bond being called, but what do I know.

If rates drop, that affects all four bonds, right? Having two different bonds didn't protect me from a call. I doubt four would, either, unless some of them have lower interest rates. But, I don't know a whole lot about calls - other than I just got two bonds called from the same issuer.

 

[John Galt III]

Related to cash on hand vs cash stored in a CD :

If I needed some quick cash, say, in a week or two, could I just call up Fidelity and ask them to ACH $30K out of my 401K into a checking account? I know it would be taxable, I just want to know how long it would take. I am 70 years old, so no 10% penalty, also am aware of that.

Thanks

 

[Dash man]

We have $150k in CDs maturing this month. I think I’m going to stick it JAAA at 6.41% for now. Even if it drops when interest rates are lowered, the return should still be better than any CDs available.

 

[jazz4cash]

Related to cash on hand vs cash stored in a CD :

If I needed some quick cash, say, in a week or two, could I just call up Fidelity and ask them to ACH $30K out of my 401K into a checking account? I know it would be taxable, I just want to know how long it would take. I am 70 years old, so no 10% penalty, also am aware of that.

Thanks

Probably yes but it would depend on your particular 401k plan rules. I’ve done it but my plan is very employee freindly. I think some plans may not permit partial distributions. Call Fidelity or take a look at your plan docs. It’s good to know the rules before you encounter an emergency. .