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

ShokWaveRider said:
5 Year MYGAs are there with A rated companies.(y)
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Soured a bit on MYGA's only due to the administrative issues I have had with delays on transference of monies back into other accounts on maturity. Plus there was a huge issue with a 1099 with one the issuers which was grossly incorrect and the subsequent correction let's just say I will accept the correction.
Tax preparers would have not caught the error.
 
Dtail said:
Soured a bit on MYGA's only due to the administrative issues I have had with delays on transference of monies back into other accounts on maturity. Plus there was a huge issue with a 1099 with one the issuers which was grossly incorrect and the subsequent correction let's just say I will accept the correction.
Tax preparers would have not caught the error.
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I have always gone through BluePrint Income; any withdrawals have been seamless. But none have actually matured yet. Take my 10% yearly from one of them I email BPI, they send me a form, I fill it out, email it back. Money is deposited into my account about 2 - 3 days later. I have done this annually for the last 2 years from one I have with a lower return than my others.
 
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ShokWaveRider said:
I have always gone through BluePrint Income; any withdrawals have been seamless. But none have actually matured yet. Take my 10% yearly from one of them I email BPI, they send me a form, I fill it out, email it back. Money is deposited into my account about 2 - 3 days later. I have done this annually for the last 2 years from one I have with a lower return than my others.
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The Admin errors were from Fidelity (only example of errors/bad service in 40+ years), but the 1099 error was from the issuer. On all the MYGA's, I did have 1035 distributions to create other MYGA's and the resulting creations appear to be too complex for some of the issuers.
 
Dtail said:
Soured a bit on MYGA's only due to the administrative issues I have had with delays on transference of monies back into other accounts on maturity. Plus there was a huge issue with a 1099 with one the issuers which was grossly incorrect and the subsequent correction let's just say I will accept the correction.
Tax preparers would have not caught the error.
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Ok but do you mind identifying the issuer and broker? Seems unfair to become soured on the entire MYGA marketplace. I’ve had some delays taking free annual distributions from Americo initiated at Fidelity. Insurance companies seem to take forever and you have to bug them sometimes…and I just bought another one from Americo theough Blueprint Income. It’s 5.55 for 6 yrs w/5% free annual withdrawals.

Edit: I see you’ve added detail. Thanks.
 
jazz4cash said:
Ok but do you mind identifying the issuer and broker? Seems unfair to become soured on the entire MYGA marketplace. I’ve had some delays taking free annual distributions from Americo initiated at Fidelity. Insurance companies seem to take forever and you have to bug them sometimes…and I just bought another one from Americo theough Blueprint Income. It’s 5.55 for 6 yrs w/5% free annual withdrawals.

Edit: I see you’ve added detail. Thanks.
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Additionally the issuer was Mass Mutual. I should also add that these investments are for my mom's (90 y.o.) trust, so also trying to reduce the overall weighted average maturity of the portfolio.
 
I'm reconsidering my fixed income strategy, just a little bit. I have been buying shorter term CD's (9 to 18mo) but I am now considering buying longer term (2 and 3 yr+) as my shorter term CD's mature, for FOMO. (greed) I just have a feeling, that we've seen the peaks for this cycle and things will start ticking down by year end. At my age a few more years of 5%+ is all I care about anyway. If rates stay higher longer (and if I'm still around) I'll just re-buy.
 
Car-Guy said:
I'm reconsidering my fixed income strategy, just a little bit. I have been buying shorter term CD's (9 to 18mo) but I am now considering buying longer term (2 and 3 yr+) as my shorter term CD's mature, for FOMO. (greed) I just have a feeling, that we've seen the peeks for this cycle and things will start ticking down by year end. At my age a few more years of 5%+ is all I care about anyway. If rates stay higher longer (and if I'm still around) I'll just re-buy.
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My only issue with Brokered CDs is that there are only a few that pay monthly and most of the good ones are callable. Do you buy Callable CDs or only Non Callable?

I am leaning towards MYGAs as I get older. Only the better companies though.
 
ShokWaveRider said:
My only issue with Brokered CDs is that there are only a few that pay monthly and most of the good ones are callable. Do you buy Callable CDs or only Non Callable?

I am leaning towards MYGAs as I get older. Only the better companies though.
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I only buy non callable and the majority I have pay monthly. I don't even consider callable's. I agree most pay semi annually or at maturity, but there's enough that pay on a monthly basis they can be found. If none are available at any given time, usually you can wait a few days and a few will pop up (and disappear quickly too). So be ready.
 
Car-Guy said:
I only buy non callable and the majority I have pay monthly. I don't even consider callable's. I agree most pay semi annually or at maturity, but there's enough that pay on a monthly basis they can be found. If none are available at any given time, usually you can wait a few days and a few will pop up (and disappear quickly too). So be ready.
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Wouldn't a monthly paying CD be somewhat of a negative if there is a declining interest rate environment?
Yes OTOH, if one needs the cash flow as part of the matching of expenses, then understand.
 
Car-Guy said:
Why?
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Not the current environment, but if the current MM and CD rates in a declining interest rate environment are less than the one's let's say 5 year CD rate, then the interest rate choices for that monthly interest payment would be less than that 5 yr CD which pays less frequently and keeps more of the money with a higher rate.
 
I like the MYGAs (CD with an Insurance Company) that allow 10% withdrawals per contract year. Some (my favorite) even allow a regular systematic monthly withdrawal.

So, based on my latest MYGA ($250k) which is paying 5.55% (A++ Rated). You could only take the interest only and receive ~$1145 a month till maturity and not deplete the capital. You could also take the full 10% @ ~$2083 a month in the first year. You could do the math in the second year and get around $1900 a month in the second year.

Not too shabby really.
 
ShokWaveRider said:
I like the MYGAs (CD with an Insurance Company) that allow 10% withdrawals per contract year. Some (my favorite) even allow a regular systematic monthly withdrawal.

So, based on my latest MYGA ($250k) which is paying 5.55% (A++ Rated). You could only take the interest only and receive ~$1145 a month till maturity and not deplete the capital. You could also take the full 10% @ ~$2083 a month in the first year. You could do the math in the second year and get around $1900 a month in the second year.

Not too shabby really.
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Gainbridge FastBreak has 5-10 years at 6.15%, and what's great about FastBreak is it's not tax-deferred so you can use the 10% withdrawals pre- 59.5
 
ShokWaveRider said:
My only issue with Brokered CDs is that there are only a few that pay monthly and most of the good ones are callable. Do you buy Callable CDs or only Non Callable?

I am leaning towards MYGAs as I get older. Only the better companies though.
Click to expand...
But can you buy MYGAs in your brokerage account or only directly with the insurer? If the former then I would consider but I'm not interested in having multiple accounts with multiple vendors to chase 50 bps.
 
pb4uski said:
But can you buy MYGAs in your brokerage account or only directly with the insurer? If the former then I would consider but I'm not interested in having multiple accounts with multiple vendors to chase 50 bps.
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Not directly with the insurer. But you can with your brokerage. I personally use a dedicated insurance broker for my MYGAs. I find them more responsive than Schwab on these matters. YMMV
 
pb4uski said:
But can you buy MYGAs in your brokerage account or only directly with the insurer? If the former then I would consider but I'm not interested in having multiple accounts with multiple vendors to chase 50 bps.
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All the MYGA's I purchase for my mom are contained within Fidelity. On the position page, each one does show up as a separate account, but technically and officially they are contained within the trust.
 
RetiredAndLovingIt said:
I'm well aware of what it is and you're hijacking the Bank Deals thread.
MYGAs are NOT FDIC insured so are not the same and don't belong in this thread.
All other threads on this topic are over in Active Investing as you well know since you participate in them.
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I have to agree, a MYGA is an insurance product and nothing like a CD.
 
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