CD rates on the rise

[samhexum]

16 hours ago, BuffaloKyle said:

I was thinking about doing a 24 month CD. 

Grow your savings the secure way by locking in Valley's 12-month CD at 5.00% APY.
 

5.00% APY
12-Month CD
FDIC Insured

Head to your local branch and open an account with as little as $500. Deposits are FDIC insured up to $250,000 per depositor, for each account ownership category.

Learn more at valley.com/12-monthcd and start saving.

[Jim_n_NYC]

Just checked Fidelity's treasury yields and the 3-mo's are listing around 5.4% on the secondary market.  I have a new buy coming soon and I buy new issues instead of on the secondary, so the yield should be VERY slightly higher.

 

[Beancounter]

Announcements, Data & Results — TreasuryDirect

WWW.TREASURYDIRECT.GOV

I just purchased a 26-week t-bill at a 5.526% investment rate.  I’m good with any rate above 5% to park excess funds on a short term basis.  
 

The above link will take you to recent Fed auction results.  
 

Prosperity to all!

Edited May 31, 2023 by Beancounter

[edinbrooklyn]

Fidelity has a money market mutual fund paying about 4.75% on an annualized basis. The interest is paid every month so there’s a compounding benefit. And no “lock up” or term, as with CDs.

[Jim_n_NYC]

21 hours ago, edinbrooklyn said:

Fidelity has a money market mutual fund paying about 4.75% on an annualized basis. The interest is paid every month so there’s a compounding benefit. And no “lock up” or term, as with CDs.

Current Fidelity treasuries are just shy of 5.2% and don't pay state and local taxes...which saves another 10% here in NYC as compared to their MM's.  I'll gladly "lock in" the funds for 3 months to a year for that.

[TonyDown]

I skimmed an article this week that Chase has lost $75 billion deposits that flowed to banks offering better interest rates such as CD rates.

I became a Chase customer back when they gobbled up the failed Washington Mutual.

However I moved most of my cash to another institution that offered a 5% interest CD, earlier this year.  I am not surprised to read others are doing the same.

I expect Chase can weather the storm. 

A guy from the local branch called to invite me I to some kind of VIP relationship but I am not looking for that right now.

I'd rather not hear from them.  

[handiacefailure]

20 hours ago, TonyDown said:

I skimmed an article this week that Chase has lost $75 billion deposits that flowed to banks offering better interest rates such as CD rates.

I became a Chase customer back when they gobbled up the failed Washington Mutual.

However I moved most of my cash to another institution that offered a 5% interest CD, earlier this year.  I am not surprised to read others are doing the same.

I expect Chase can weather the storm. 

A guy from the local branch called to invite me I to some kind of VIP relationship but I am not looking for that right now.

I'd rather not hear from them.  

A friend of mine in LA also got a call from a chase rep and had him come in and invited him to be a private banking customer    Apparently they lowered the requirements to be a private banking customer   They offered him a 12 to 18 month CD at 5 percent but alliant is paying a little better.

He's been doing what I've been doing and buying 30 day t-bills since the rate is a little over 5 percent and living in California which is a high state tax rate state like mine, not paying state income tax helps a lot.   

[+ augustus]

13 hours ago, handiacefailure said:

A friend of mine in LA also got a call from a chase rep and had him come in and invited him to be a private banking customer    Apparently they lowered the requirements to be a private banking customer   They offered him a 12 to 18 month CD at 5 percent but alliant is paying a little better.

Yes, the big money center banks are starting to lose deposits to higher rate alternatives elsewhere but it's not a major problem for them so far.  It's amazing how many people don't care if their getting 0.10% on their money.  It's important to at least try to keep up with inflation, you would think.

[TonyDown]

Personally I prefer not working with big banks.

I fired Wells Fargo (I like saying that) years ago around the times they were caught with pants down, and have been tempted to give Chase the heave ho.  

My trust level is low.

That said, I am already wondering where CD rates will be a year from now.

Perhaps now is a good time to look at bonds, suggested by one investment news show on cable TV.

[handiacefailure]

18 minutes ago, TonyDown said:

Personally I prefer not working with big banks.

I fired Wells Fargo (I like saying that) years ago around the times they were caught with pants down, and have been tempted to give Chase the heave ho.  

My trust level is low.

That said, I am already wondering where CD rates will be a year from now.

Perhaps now is a good time to look at bonds, suggested by one investment news show on cable TV.

One thing I like about big banks is that I travel a lot and it's easier to find their branches and ATMs and most big banks have an investment division.   I'm getting aroudn 4.5% on my money market at my bank which isn't the greatest return but at least if I want to make a stock purchase I can transfer it to my investment account right away and make the trade.  And an investment account factors into the composite balance for fee waivers.

Suze Orman did a podcast yesterday on 30 year treasury bonds.   Thinking of doing dollar cost averaging into those like she suggested.   I've doing four 30 day t-bill ladders so I have on maturing each week   It's paying a little over five percent and I get the money in my bank account as soon as it matures and I live in a state with a high state tax and it's nice the interest is tax free

[Cooper]

On 8/9/2022 at 3:20 PM, Cooper said:

For those of you who keep a savings account, check out the new CD rates at Citibank. Effective 8/9-8/15.

1 year 2.50%
1 year no penalty for early withdrawal 1.50%
18 month 2.75%

 

I started this thread a year ago and have been following rising CD rates ever since. Today’s rate @ Citibank for a 9 month CD is 4.90% with a minimum of $100,000. From reading previous messages I see that CD rates are higher elsewhere. One of my CD’s @ Citi matures this week and I’ll be rolling it over into the higher rate. 

[+ Lucky]

Happy Anniversary!

[Jim_n_NYC]

My last treasury buy (3 mo bills) came out to 5.49% APY when I did the math.

[Cooper]

Re: CD’s 

If you think CD rates might still be rising and you don’t want to lock-in your money for 9+ months, Citi is still offering the “no penalty” CD at 4.75%. Other banks might have better rates. Breaking a CD before its maturity can cost you 3 months in interest.  

[Beancounter]

Announcements, Data & Results — TreasuryDirect

WWW.TREASURYDIRECT.GOV

Here’s a link to the most recent auctions.  Rates are consistently over 5%.  I’m good with that. 😊 

[Jim_n_NYC]

2 hours ago, Cooper said:

Re: CD’s 

If you think CD rates might still be rising and you don’t want to lock-in your money for 9+ months, Citi is still offering the “no penalty” CD at 4.75%. Other banks might have better rates. Breaking a CD before its maturity can cost you 3 months in interest.  

That's partly why I've been buying 3 month treasuries...1/3 of my cash each month so I have maturities every month that I can tap if needed.

But on the other hand, I have a huge bunch of cash just in online savings accounts getting anywhere from 5% to 5.5%..so no need to lock in anything.

[+ stevenkesslar]

On 8/7/2023 at 5:36 AM, handiacefailure said:

One thing I like about big banks is that I travel a lot and it's easier to find their branches and ATMs and most big banks have an investment division.   I'm getting aroudn 4.5% on my money market at my bank which isn't the greatest return but at least if I want to make a stock purchase I can transfer it to my investment account right away and make the trade.

That was helpful advice.  Thanks.

I just had a big cash inflow from a home sale and I was about set to take @jawjateck's instructions from Page 2 and sign up for Treasury Direct.  The rates on short term bills are all in the low 5's.  And the process seems easy enough.

I recently got kicked to Schwab from Ameritrade, due to a merger.  I hate their stock trading platform.  But I figured I'd check.  Sure enough they have very similar Treasury-based money market rates.  Their rate is almost exactly 5, which I'm guessing factors in a 0.35 % expense ratio.  But I figured the convenience was worth it because the whole point is simply to park it temporarily while I dollar cost average it in to stocks in the (hopefully) continuing bull market.  Since the account, including a transfer to my checking, was already set up it was super easy to just do it that way.  I checked with B of A, where I have my checking, and their rates were significantly lower.  So, yeah, big banks mostly suck.

By the way, has anyone found the crystal ball that tells us whether the bull market is ongoing?  Asking for a friend.  😉

Edited August 9, 2023 by stevenkesslar

[musclestuduws]

On 8/9/2023 at 8:10 AM, Cooper said:

Re: CD’s 

If you think CD rates might still be rising and you don’t want to lock-in your money for 9+ months, Citi is still offering the “no penalty” CD at 4.75%. Other banks might have better rates. Breaking a CD before its maturity can cost you 3 months in interest.  

Thanks for sharing this. I looked at Citibank rates yesterday but missed the no penalty CD at 4.75. Sounds like a great option to me. We'll check again today. 

[sutherland]

On 8/9/2023 at 10:40 AM, Jim_n_NYC said:

That's partly why I've been buying 3 month treasuries...1/3 of my cash each month so I have maturities every month that I can tap if needed.

I have created a ladder of 3-month T-bills.  They are only taxed on our Federal income tax, unlike CDs that are taxed on both Federal and Local income tax returns (unless you're lucky enough to live in Florida, Nevada, etc. where there is no local income tax). When the recession hits I'll have maturities on a regular basis and put the money into the market at rock bottom. 

[Jim_n_NYC]

4 minutes ago, sutherland said:

I have created a ladder of 3-month T-bills.  They are only taxed on our Federal income tax, unlike CDs that are taxed on both Federal and Local income tax returns (unless you're lucky enough to live in Florida, Nevada, etc. where there is no local income tax). When the recession hits I'll have maturities on a regular basis and put the money into the market at rock bottom. 

I agree, but even without the tax benefits the treasuries look better.

Current yields on Fidelity:  3-mo treasury - 5.41%, 3-mo CD - 5.2%

[sutherland]

26 minutes ago, Jim_n_NYC said:

Current yields on Fidelity:  3-mo treasury - 5.41%, 3-mo CD - 5.2%

Thanks for the advice. One of my brokerage accounts is with Fidelity and I'll look into it

[Cooper]

On 6/13/2023 at 8:07 AM, Jim_n_NYC said:

Current Fidelity treasuries are just shy of 5.2% and don't pay state and local taxes...which saves another 10% here in NYC as compared to their MM's.  I'll gladly "lock in" the funds for 3 months to a year for that.

I just took out a 3 month Treasury for 5.17%. Yes, being NYS tax free is a big advantage. Tomorrow, Citibank (every Tuesday) will announce their new CD rates. I doubt there will be any changes. I’m looking into the 12 month “no penalty”  CD @4.75%. Just in case rates do go up again. 

[+ augustus]

US Treasury Bills, Notes and Bond rates for Monday, August 21, 2023 for those interested.

 

US 1-MO         5.42    +0.035
US 2-MO         5.458    +0.04
US 3-MO         5.465    +0.025
US 4-MO         5.51    +0.023
US 6-MO         5.529    +0.044
US 1-YR           5.403    +0.024
US 2-YR           4.986    -0.006
US 3-YR           4.693    -0.011
US 5-YR           4.432    -0.027
US 7-YR           4.401    -0.028
US 10-YR         4.306    -0.036
US 20-YR         4.612    -0.038
US 30-YR         4.422    -0.034
 

[samhexum]

On 5/30/2023 at 4:50 PM, samhexum said:

Grow your savings the secure way by locking in Valley's 12-month CD at 5.00% APY.
 

5.00% APY
12-Month CD
FDIC Insured

Head to your local branch and open an account with as little as $500. Deposits are FDIC insured up to $250,000 per depositor, for each account ownership category.

Learn more at valley.com/12-monthcd and start saving.

 

 

Grow your savings the safe and simple way by locking in Valley's 12-month CD at 5.25% APY. Head to your local branch and open an account with as little as $500. Deposits are FDIC insured up to $250,000 per depositor, for each account ownership category. Learn more at valley.com/12-monthcd and start saving.

Edited September 6, 2023 by samhexum
for absolutely NO @%!*ING reason at all!

[+ augustus]

M&T Bank (in the Northeast) is offering 5.50% per year for 18 months.  Not bad at all.  There may come a time, maybe soon, that locking in a long-term CD or bond will make sense.  The Federal Govt's interest expense is skyrocketing this year with the added interest rate expense as they roll over old maturing debt almost every week.  I'm sure the Fed is desperate to cut rates as soon as they are able to.   

Edited September 11, 2023 by augustus