CD Discussion Thread

CD Discussion Thread


Personally I’m not playing their short term/low rate game. Why not?

It’s because I’m not convinced that interest rates out between eighteen months and thirty months will be high as is the case today. I’m seeing them trying to tie me up for that interval and then, if rates fall, I’m stuck.

So what could change my mind? Well, the moment I sense interest rates are generally falling I will lock in whatever deals are available at that moment. But right now my impression is we remain in a (generally) rising rate environment. Hence I continue to harbor hope of locking in higher rates than are available now.

Meanwhile, your 2% return on liquid funds does not seem punitive at all. At that rate we can afford to wait things out . . . at least a bit longer.


Heads up NFCU members:

NFCU has announced new CD offerings effective today. Go to their website for the details.

NFCU CD rates


Thanks for this info shinobi. But, I think I will pass for now.

The 18 mo 2.25% is pretty good. I am drawing 2% liquid savings at Popular Direct, so I can withdraw funds when I wish.
The 5 yr 3% is ok, but I’m not interested in that long a term.

I really enjoy Navy FCU & invest when the offering is appealing. I have a couple CD’s with NFCU that mature in June. I’ll be really interested the middle of June.


Totally agree. Both offerings are unattractive to me as well. But thought others deserved to be made aware.


Greenwood two year CD deal analysis and discussion:

Ken is featuring the Greenwood deal front and center. The APY is 2.8% for a two year deal. Ken says joining is easy.

2.8% is very nearly 3%, and two years is a short enough term. This deal does not sound horrible to me, at least not on the surface.

My principal concern is where will rates be in two years? There is the politics which can be expected to be in FULL force in May of 2020. There is the economy itself whether or not, politics quite aside, we can sustain growth for two years . . . or will the economy and interest rates be faltering in May of 2020?

If I could lock in 2.8% for two years and then come back at maturity and be assured rates would not have taken a hit . . well . . not so bad. Sadly, my crystal ball becomes quite opaque commencing roughly September/October of this year. There is so much turbulence out there of all sorts and kinds. It is most difficult for me to have a clear vision of how things will stand in May of 2020.


Per Ken at depositaccounts:

KS StateBank’s raised all of its rates yesterday, making their CD rates at or near the top

1-year (2.27% APY),
2-year (2.65% APY),
3-year (2.85% APY),
4-year (2.90% APY),
5-year (3.00% APY),

***All CDs require $500 minimum deposit

Availability: Nationwide


As OP here I want you to be advised that this CD discussion may be either specific or general. Either is fine and either is welcome. I have a comment in the “general” category:

It seems to me 3%, five year, CDs are now more or less routinely available. And the shorter CDs bunching up behind the five year benchmark variety at only slightly lower interest rates are legion.

But if you are seeking 4% for example, well, good luck with that. So will the anticipated June Fed hike cause the dam to burst, will it be the straw that finally breaks the camel’s back? Obviously I dunno.

I was conditioned during the Obama years to watch the stock market for indication of where interest rates were headed. I was ebullient earlier this year when the stock market was reaching new highs weekly. Now the stock market has cooled, and even retreated, and interest rate hikes much above 3% are not so far materializing.

Sure interest rates are a measure of the cost of money. Higher longer term rates betray belief, on the part of borrowers, that the cost of money will remain high over a longer period of time. The folks running Andrews had that belief late in 2016 with their 3% offering back then. While they have yet to be proven right and smart, at least now they are breaking even, while at the time they appeared to be bearers of gifts for us savers.

Will the Sharonview potentates turn out to be prescient? Stay tuned. My own crystal ball remains clouded on that one.


Shinobi were you always this into CDs? If not what and when were you in?


No, but the answer to your question is off topic here . . . related to CDs only peripherally. When young I made my money in the bond market, to include munis, govvies, you name it. It has been many years since I did bonds, except more recently for I bonds. I researched and bought individual issues . . never funds. Bonds were very good to me.

I guess the common element is fascination with and dependence upon the direction of interest rates, yield curves, etc… That stuff always has intrigued me.


Discover Bank 1 Year at 2% APY.


Noted in passing

I am currently reflecting on the following factoid:

A $5000 CD with a 30% APY provides more yearly income than a $35000 CD having only a 4% APY

Interesting :wink:

There is not a dull moment in this life. :joy:


Interesting info.

But, where can we find $5k cd@30%? At the same time where can we find CD @4%? (short term)
Just asking!!


Well, of course such things do not exist in the real world. :wink: :rofl:

But it is interesting to contemplate, in terms of income thrown off by a nest egg, how much a relatively small amount of money can generate if (and only if) the APY is at a high level.


Connexus is offering a 5 year CD, available to all, having a 3.25% APY.


Kinda pondering the new “three for three” CD deal at PurePoint.

Worth dropping in a few bucks? I dunno. Anybody have an opinion?

OK, wasn’t the Freedom CD thing a three for three? And that was a while back. Still a great deal back then and I went in. Now?


PurePoint is trying to get to top of the savings rate, 1.90%. Looking good for saver’s!

PurePoint, 3 for 3, might be the best going. My Navy CU cd’s mature the middle of June & other than savings I may go for this one.


Persons with curiosity regarding where interest rates might be heading, here is your notice:

The May employment report will be released tomorrow (Friday) morning, promptly at 8:30am ET.


Northern Bank Direct adds a new 30mo CD (3.01% APY); $500 minimum deposit. Available nationwide.



Possibly quite true at the time written. A “three for three” deal is attractive.

But now turtlebug has posted a “three for two point five” CD deal. And next week the Fed is anticipated once again to raise the federal funds rate by another quarter point.

I am unable today to see an end in sight for these interest rate increases. First change of direction I can envision would not happen until November, if it happens at all.

Between now and then: onward and upward for interest rates.


ableBanking 1-Year CD is up to 2.50% APY; $1k minimum deposit, $240k maximum deposit; nationwide availability