CD rates on the rise

[SoCalBaseball]

On 9/19/2024 at 12:16 PM, TonyDown said:

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  The additional deposits can be withdrawn without penalty.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 

 

Did you try Fidelity?

[TonyDown]

4 hours ago, SoCalBaseball said:

Did you try Fidelity?

Yes, I did.  Have you?  

[SoCalBaseball]

9 hours ago, TonyDown said:

Yes, I did.  Have you?  

Yes, way better than Citi overral 

[Cooper]

25 minutes ago, SoCalBaseball said:

Yes, way better than Citi overral 

Could you post Fidelity’s interest rates on CD’s. 

[BuffaloKyle]

On 9/18/2024 at 3:26 PM, BuffaloKyle said:

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.

They just lowered the rates at the bank I bought my CD from. Now a 1 year is 4.25%, 2 year 3.75%, 3 year 3.10% and a 4 or 5 year 3.00%. Glad I locked in my 4.00% rate for 2 years.

[Frequentflier]

On 9/21/2024 at 5:06 PM, SoCalBaseball said:

Did you try Fidelity?

I've found some decent CD's on Fidelity's New Issue page. The secondary market rarely has anything decent.  I've had good luck on these sites:

CDVALET, Bankrate. Or you can just search "best 6 month cd rate" or "best two year cd rate", etc. 

Some recent success with Lending Club Bank, Bankwell, Barclays. Again, as I think I posted previously, check the bank on the FDIC website to confirm its a covered bank AND the website you are using is legitimate. The FDIC website even provides the official webpage for a covered bank.

I see lots of violatilty but if someone is ok to check everyday until they have bought enough they are getting ahead of further rate decreases. Keeping in mind that we don't know what will happen in the future and certainly with the election so I don't go out more than 24 months and have many laddered shorter than that.

Sorry if everyone knows this but many banks let you decide when you open a CD or even throughout the term what you want done with the interest. Paid electronically to another bank account with that bank or another. Lending Club I think even allows you to make that decision online whereas some ask you to call within a certain number of days of when an interest payment will be made.

[BuffaloKyle]

1 hour ago, Frequentflier said:

Sorry if everyone knows this but many banks let you decide when you open a CD or even throughout the term what you want done with the interest.

I opened my CD with a bank that I already have a high interest savings account with. I didn't know this but I can have the monthly interest added to my CD value to earn more interest on or I can have the monthly interest deposited into my savings account. I can also change my mind back and forth. I'll keep it in the CD but once it gets down to near the maturity date I'll have the interest go into whichever account has the higher interest rate.

[+ augustus]

On 9/22/2024 at 10:24 AM, Cooper said:

Could you post Fidelity’s interest rates on CD’s. 

These are the rates as of Friday, 9/27/24 for the non-callable CD's. at Fidelity.  The callable CD's have slightly higher rates but can be called in by the bank at any time before maturity.  I think most people avoid the callables. 

3 mo   4.55%.   6 mo  4.35%.   9 mo  4.05%.  12 mo  3.90%.  18 mo 3.80%.  24 mo 3.75%.  36 mo 3.65%.  48 mo 3.45%.

60 mo 3.60%.  

 

 

[BuffaloKyle]

Based on the election results there is now only one rate cut projected in 2025 and a chance that we will have inflation return and a need for rate hikes as well. So I would think that would lead to don't buy any long term CDs anytime soon.

[Jim_n_NYC]

Interestingly, rates are not doing what some pundits thought they would.  The Fed cut rates a quarter percent, but some rates in the market have actually gone up.  Just saw a report that some mortgage rates are above 7% again.

From my personal experience, I bought treasuries two weeks before the election and then last Friday (so after the election).  The rate on my post-election (and post Fed cut) bills came in higher.

[+ augustus]

On 11/13/2024 at 9:26 AM, Jim_n_NYC said:

Interestingly, rates are not doing what some pundits thought they would.  The Fed cut rates a quarter percent, but some rates in the market have actually gone up.  Just saw a report that some mortgage rates are above 7% again.

From my personal experience, I bought treasuries two weeks before the election and then last Friday (so after the election).  The rate on my post-election (and post Fed cut) bills came in higher.

The Fed can control short term rates, but not long-term rates.  The market decides that at Treasury auctions and the market takes into account many factors, such as the perceived or expected rate of inflation.  Another factor being cited by economists is the large size of the National Debt, which is causing buyers of Treasuries to demand high rates as an offset to the risk factor of default.  

[Cooper]

For the past year CD rates were on the decline. I was surprised to see a rise in today’s Citibank’s CD rates. 

7-Month

APY

4.35%

[BuffaloKyle]

On 1/28/2025 at 6:11 AM, Cooper said:

For the past year CD rates were on the decline. I was surprised to see a rise in today’s Citibank’s CD rates. 

The one article on the fed keeping the interest rate the same said we might see a rate hike due to inflation creeping back up and the job market staying strong. That was before the news on the tariffs going into effect which will surely raise consumer prices. 

[TonyDown]

On 1/28/2025 at 3:11 AM, Cooper said:

For the past year CD rates were on the decline. I was surprised to see a rise in today’s Citibank’s CD rates. 

7-Month

APY

4.35%

That rate is in the lead by a nose, among all the CD rates I track.   

[Frequentflier]

I thought we'd see interest rates continue to decline but I've also seen an increase in CD rates recently. And last week my partner bought (with my money) some long term treasury notes yielding over 5%. Only saw that over 5% for a brief period. Treasury securites are very liquid so holding to maturity isn't a requirement; "risk" is that treasury rates increase and market value falls but at 4.5%-5%+...... Treasuries are marginable if cash is needed but the interest rates on those loans are usually high

 

[BuffaloKyle]

The bank I use just raised their one year cd rate from 4.00% to 4.35%. The 2 year stayed at 3.50% though. I wouldn't even wanna buy anything more than a one year cd at this point in time. 

[+ ApexNomad]

45 minutes ago, BuffaloKyle said:

The bank I use just raised their one year cd rate from 4.00% to 4.35%. The 2 year stayed at 3.50% though. I wouldn't even wanna buy anything more than a one year cd at this point in time. 

Hard to justify locking in for longer when the yield curve is this inverted. It usually signals economic uncertainty or expectations that interest rates will decline in the future.

[+ augustus]

Marcus by Goldman is offering 4.50% for a 14-month CD.  I believe it's the highest in the nation.

[Kcdave]

If we enter into a recession situation because of the tariff cuts. The Fed will ultimately have to start reducing the prime rate.
So if you can lock in today for six months to 18 months on a CD, you’re probably smart

Will the Fed go back to quantitative easy they probably will have to if the economy dives into a recession

[TonyDown]

I grabbed a 4.25% CD at Citibank yesterday.  I'd moved away for awhile but came back to them.

A popular finance personality confirmed that 4.25% is a good rate right now in her opinion and expects CD rates will drop soon.  However her predictions have not always been on target.

[+ Lucky]

But isn't that Citibank CD pretty short term?

[TonyDown]

3 hours ago, Lucky said:

But isn't that Citibank CD pretty short term?

Yes.  Sorry, I omitted the term.  It's 9 months.

[Cooper]

6 hours ago, TonyDown said:

Yes.  Sorry, I omitted the term.  It's 9 months.

@TonyDown,

I also bank at Citibank. Are you familiar with the 4.35% that Citibank offers? If you add 25K or more of “new money” to your existing savings account, for 3 months, you get this higher rate. What I like about it is that your entire savings account will now get this higher rate and there are no penalties if you withdraw any money before the 3 months. Citibank frequently offers this deal. 

[TonyDown]

5 hours ago, Cooper said:

@TonyDown,

I also bank at Citibank. Are you familiar with the 4.35% that Citibank offers? If you add 25K or more of “new money” to your existing savings account, for 3 months, you get this higher rate. What I like about it is that your entire savings account will now get this higher rate and there are no penalties if you withdraw any money before the 3 months. Citibank frequently offers this deal. 

@Cooper

I wasn't aware. That looks good.  Is the strategy to capture that higher rate and then park those funds somewhere else after the 3 month promotional rate expires?

[Cooper]

Citibank just posted their new CD rates. They’re down from last week. Could this be the start of falling interest rates? The 9 month CD is their highest rate. 

9-Month

APY

4.15%