PenFed just raised their CD rates

[jazz4cash]

For the ibonds, doesn’t the rate change every 6 months? Seems inaccurate to say 6.x% per annum by doubling the 6 month rate when rates could higher or lower beyond the initial rate period. I’m buying my 1st ibond next month but I’m not thinking of it as a 30 yr bond @~7%. It’s a hedge against inflation. The 10k limit is a hassle but it’s still enough to build up a reasonably sized hedge.

 

[Chuckanut]

Some credit unions apparently want to be like the Big Megabanks. High fees, low savings rates, and restrictions on things like the amount one can transfer to and from them. For that service, I might as well stay with the national Megabank down the street.

 

[RetiredAt55.5]

For those who want a higher rate, but also with a limit on how much they can put in look into ibonds. Looks like 6.67% no risk. But a couple of drawbacks. Minimum 1 year hold time. Three months of interest deduction if withdrawn before 5 years, so, 6.67%, 6.67%, 6.67%, 6.67%, 5%. Not really so bad. Or 5% for that one year hold. Also you can only invest $10,000 per person, plus kids, but then it's their money. Wait until Nov. for higher rates.

Of course, if managing income for ACA purposes, Ibonds give you more control than most CD's, on when interest is declared.