CD rates on the rise

[Thelatin]

Hmmm, Vanguard's money market over the last year has returned 5.38%

[Cooper]

@augustus and @Thelatin,

Those are good rates. 👍🏼

I have some CD’s maturing next month. I’m currently earning 5.25% at Citibank but their new best rate is 4.75% for 6 months. I’ll look into your suggestions. Thanks! 

[Jim_n_NYC]

2 hours ago, Cooper said:

@augustus and @Thelatin,

Those are good rates. 👍🏼

I have some CD’s maturing next month. I’m currently earning 5.25% at Citibank but their new best rate is 4.75% for 6 months. I’ll look into your suggestions. Thanks! 

Huh, I just had a 6 month treasury order execute this morning and when I multiply out the rate, it comes out to almost 5.5%...and no NYC or NYS taxes!

[Cooper]

For the 1st time in several months the CD rates @ Citibank are dropping. I wonder if this is also true at other commercial banks. 

Featured Rates as of today:

9-Month

APY

3.75% 

6-Month

APY

4.65% 

15-Month

APY

4.00% 

[sutherland]

On 5/29/2024 at 11:42 AM, Jim_n_NYC said:

Huh, I just had a 6 month treasury order execute this morning and when I multiply out the rate, it comes out to almost 5.5%...and no NYC or NYS taxes!

I have a ladder of t-bills with no local taxes ... I love it!

[Jim_n_NYC]

So, I thought rates were supposed to be falling, but my 6 month treasury buy yesterday ended up at a 5.4% annual rate.  I'll take that!

[+ augustus]

On 6/18/2024 at 7:05 AM, Cooper said:

For the 1st time in several months the CD rates @ Citibank are dropping. I wonder if this is also true at other commercial banks. 

Featured Rates as of today:

9-Month

APY

3.75% 

6-Month

APY

4.65% 

15-Month

APY

4.00% 

They are basically giving out good rates up until 15-18 months, then they are dropping after that.  It seems the banks are anticipating rate cuts and don't want to go out too long.  I'm getting 4.75% at my smaller regional bank for 18 months.  What can we do?

[+ augustus]

It seems now is the time to lock in an 18 month (more or less).  It looks like the Fed is about to cut rates.   Lending Club is offering 5% for an 18-month CD and you can set it up online.  FDIC insured.  

[BuffaloKyle]

My bank just lowered their one year cd rate from 5.00% to 4.50%! I just missed out on that but I've been very hesitant because I have no idea what the election in November could possibly do to the markets.

[MikePDNA51]

On 5/29/2024 at 5:07 AM, Thelatin said:

Hmmm, Vanguard's money market over the last year has returned 5.38%

totally obvious with the amount of people moving their money into Vanguard's ETF.  Great info. 

[+ augustus]

Just went to Fidelity's website.  OMG, all the CD offerings have been withdrawn.  Your only hope now is to buy a 6-month T-bill yielding 4.77% at this moment or a 1-year T-bill yielding 4.35%.  Or maybe you can find a local bank offering better.  Stock markets around the world are crashing, with Tokyo down 10% today as I write this.

[+ FrankR]

Never fear, Red Neck bank offers 5% on their rewards checking! You dont even have to marry your cousin to qualify! 😆

https://redneck.bank/

[MikePDNA51]

On 8/5/2024 at 4:25 AM, FrankR said:

Never fear, Red Neck bank offers 5% on their rewards checking! You dont even have to marry your cousin to qualify! 😆

https://redneck.bank/

Is this a real bank? Did someone just make a website on webflow where I can put money?

[+ augustus]

Marcus by Goldman Sachs is offering a 1-year CD for 5.00% which is quite good right now.   You can open it online.  

[TonyDown]

I bought a CD on the Fidelity Website, Bank of China New York 

FDIC insured. 

CD rates are slowly dropping.  I thought about buying ATT instead, dividend yield > 5%, however I decided to stick to my CD plan for these assets.

[Cooper]

Citibank is offering a “special interest” rate of 5% for 3 months. The catch is, it has to be new money but you can add it to an existing account and get 5% on all your savings. 

[BuffaloKyle]

2 hours ago, Cooper said:

The catch is, it has to be new money but you can add it to an existing account and get 5% on all your savings. 

Ok, I have to say I always see that about having to be "new money". Why is that exactly? So a bank where I keep most of my money then I can't open a cd with then and have to go to a competitor instead.

[+ augustus]

Lending Club Bank has the highest CD rates in the country right now.

 

6 months  5.00% APY

10 months 5.20% APY

18 months 5.00% APY

 

[TonyDown]

I've transitioned to buying CD's on the Vanguard and Fidelity Websites.

My last Citibank CD expires soon.  For now I'm consolidating and may drop my accounts there.

With all the CD rules and other unique requirements and fee structures the banks and credit unions have, for me it is a good time to choose an easier path.

 

[Cooper]

CD Interest rates at Commercial banks are dropping. This is the best rate offered by Citibank. 

5-Month

APY

4.51% 

 

[mike carey]

Bank term deposits in Australia are still available at 4.8% to about 5.1% for terms from about six to twelve months (all taxable). My bank's transaction account is paying 4.75% and I have a 'bonus' savings account that pays 5.15% (reduced to about 2% for any month I make a withdrawal or don't deposit $100) so there's little advantage in taking out a term deposit. Unlike the US Federal Reserve, the RBA is saying it doesn't expect to cut the cash rate until early next year, so maybe then it will be worth looking at term deposits but not just now.

[Frequentflier]

Check out Lending Club bank. Currently offering 5.1% for 10 months, 4.9% for 18 months, etc. There is an option to have interest transferred to another account although that would mean a lower APY. Definetly takes some shopping now to get decent rates, and the Fed hasn't even dropped interest rates yet!

Have noticed that CDs sold on Vanguard and Fidelity sites are as much as .80% lower than investing directly with a bank. 

Even for well known banks I like to look them up at the FDIC wesbite to make sure there is FDIC coverage and the website I"m accessing is legit. Here's the link to confirm FDIC coverage and it also provides the official website for the bank.

BankFind Suite

BANKS.DATA.FDIC.GOV

 

[Cooper]

Citibank posted their latest CD rates. 

Their best is 4.40% for 5 months. 

Have others noticed the same drop at their banks? 

[BuffaloKyle]

I just bought a 2 year CD today from my bank at a 4.00% rate as it's surely going to go down now. A one year rate was at 4.50% and a 3 - 5 year was all around a 3.45% rate.

[TonyDown]

My Citibank 4.75% CD matured so I

bought a 4.5% 13 mo. CD this week at my credit union. 

The advisor recommended I also buy 4.25% 9 mo. CD with their minimum deposit that allows additional deposits during the period at that rate.  The additional deposits can be withdrawn without penalty. 

So I moved $$ from my savings over to the 9 mo CD.  Seemed like a decent opportunity to have a chunk of $$ totally liquid at a decent rate, 4.25%.

Citibank CD'S are not competitive currently, IMO