Ready
Thinks s/he gets paid by the post
4% is a great rate. Does anyone know what the early termination penalty is?
4% is a great rate. Does anyone know what the early termination penalty is?
So 5 years - whopping 365 days of interest.If your account has an original term of one year or less: The penalty will equal 90 days dividends on the amount withdrawn subject to penalty. If your account has an original term of more than one year, but less than five years: The penalty we may impose will equal 180 days dividends on the amount withdrawn subject to penalty. If your account has an original term of five years or greater: The penalty we may impose will equal 365 days dividends on the amount withdrawn subject to penalty.
From their FAQs
So 5 years - whopping 365 days of interest.
Thanks! I don’t want to lock into that rate for five years with that penalty. I won’t purchase any CD that has anything greater than a six month penalty. Those are getting harder to find though. Too bad...hopefully other banks will follow.
2019 is looking good for 5yr 5% finally...........normal interest rates in the future. "The real rate for the entire 700-year history is 4.78%"
https://dailyreckoning.com/history-teaches-interest-rates-2/
Remember I asked whether we would see 4% by year end? A lot of you were not so confident they would. Well here is number 2.
Bank of Utica (NY) Boosts 5-Year CD To 4.00% APY
I guess my next question is will see 5Year 5% by the end of 2019?
If the Fed takes the Fed Rate from today’s 2.25% to 3.25% by the end of 2019 that certainly seems possible, unless long rates gets pushed down due to economic outlook concerns or some other crisis.
Assuming the almost certain 0.25% raise this December, that would mean 3 more rises in 2019.
Like SWR, I'll probably park mine in VMMXX for a bit and wait out the rise in rates rather than lock in at this time...
I am tempted to move my "Big" CDs from PenFed in December to VMMXX and cruise along at 2.xx% for a while. I will put the Pre-Tax qualified Money (about 40%) of our Nest Egg, in for another 5 years at 4.xx% to take me till RMD., and see what turns out better for the After Tax Cash. I am still Vacillating.
The nice part is that Vanguard's VMMXX mirrors these T-bill/CD/savings rate increases: now 2.22%.
I find it especially convenient to leave my liquid funds with my broker rather than chasing offers at various locations.
Filthy market timers & disgusting rate chasers.
The nice part is that Vanguard's VMMXX mirrors these T-bill/CD/savings rate increases: now 2.22%.
I find it especially convenient to leave my liquid funds with my broker rather than chasing offers at various locations.
How often does the rate on VMMXX adjust? Does it move in lock step or adjust monthly or