CD Discussion Thread

CD Discussion Thread


I’m not too worried about Fed NOT raising rates on Wed. All indicators are that’s almost a done deal. Plus, I think the President has more or less forced their hand by tweeting against rate hikes. If the Fed did not raise rates, it’d paint them as compromised in their independence and rattle market confidence further I’d think. But we’ll see.


That is my bet, as well. But by no means do I think pattyb53 is unwise for hedging her bets. In fact:

It’s not entirely about the Federal Funds rate anticipated hike. It’s also about the FOMC’s forward guidance which will be released as well at 2:00pm Wednesday. They might, for example, raise a quarter but simultaneously announce “that’s it” for a while . . . . instead of all the additional rate hikes many are today thinking will ensue in 2019.

It is VERY difficult for me to read the economy with all of the political undertones now attached thereto. I figure it’s the Fed’s job to know a lot more than I can ferret out and to keep politics out of their decisions. So I will be happy to set aside my own preconceived notions about the economy and be guided instead by the opinions of the pros at the Fed. Not saying they are gods. Just hoping they are smarter than me.

And if the Fed fails to raise rates Wednesday and signals future increases are in doubt, that will be (for me) a signal they perceive a slowing economy. If the economy is indeed slowing it might be high time to lock in current CD interest rates by lengthening maturities.


If I were them, I would raise it 1/8 and gesture that this is the sweet spot for now, with possible 1/8th adjustments in the future which could go up or down depending on tarrifs, china and strength of the dollar


The famous nineteenth century sage Samuel Clemens, aka Mark Twain, once wrote:

The report of my death was an exaggeration

So too, it would seem, various pronouncements relating to the demise of the Sun East CD deal. As I write this Tuesday morning, that deal continues to survive.

Against all odds, or merely an effort by Sun East to garner additional deposits? One wonders.


Yes, shinibi….

I completed my latest new CD with Sun East this morning. There was still a wait for a phone rep to get the CD posted. So they must be still doing business & haven’t closed shop on this one.


Ally has upped the APY on their 11 month no-penalty CD again. Current APY is now 2.30%.

This means many Payback Time participants, including me, are gonna have to close their existing 2.25% APY certificates and then re-open at the new higher rate.

Note the 2.30% APY rate applies to accounts of $25,000 and over.

Now get out there and close, then reopen, all those certificates!! I guess this is our “Merry Christmas” from Ally Bank!:grinning:



Once you have opened your new Ally no-penalty certificates at the new, higher, interest rate:

Be certain to go into your new accounts and update the renewal option for each account.

The renewal option you might have selected for the account(s) you just closed DO NOT automatically transfer over to your new Ally CD accounts. You have to go back in and do the update(s) manually!


I just checked my Ally acct to see if I had this no-penalty certificate.

No, but I have the Ally Savings acct that is paying 2%. I keep a little cheat sheet handy with all my accts listed. Next to Ally acct it shows Cash Savings that has a note reminder check in 3 months. Can anyone refresh my mind about the 3 months note?


Did you do the Payback Time deal at beginning of November? If so that could be it.

And if so why keep Payback Time money in your OSA? You could be earning more interest in a no-penalty CD and Ally does not care where Payback Time money is housed, so long as they have the money somewhere.


Well, the FOMC has raised a quarter and promises two more increases in 2019. Whew.

There is not a dull moment in this life.


Time to lock in some 5 years?


Well, that is up to the individual. For me, the FOMC yesterday said the economy is NOT in the dumpster. So I’m content to hold onto my dry powder for a while. If a great four or five year deal materializes, at at least 4%, I’m in. Otherwise I’m standing pat.

The Sun East deal? Well, it remarkably remains available this morning. I have no regrets at all having done that deal in a small way last week. But after yesterday’s Fed outcome I will not be putting in more money at this time. My hope is that with the new year might come new, great, CD deals. We shall see.:wink:


The Fed announcement to me sounded like a 50/50 of getting more rate increases. So you could see even higher rates next year but it’s certainly not a bad time probably. I’d wait a bit until banks mull over what it means and decide what the new CD rates are gonna be to stay competitive.


I am merely your humble messenger here. Please be understanding. This post is an advice only. This is NOT a recommendation. That said:

Inova FCU is offering a six (6) year CD paying 4% APY.

Your humble link

Thank you.


For persons with a lot of money to invest:

Do not ignore the five year step-up certificate at 3.8% APY. This offering features a $500 gift card bonus, in addition to the step-up feature. The bonus brings the APY up to circa 3.9%


Thanks shinobi…

I think the 14mo 3% with the $100 gift card & deposit of $50K sounds pretty good. Can anyone compute the actually % yield if you add the extra $100 to the CD?

But 6yr to get 4% is to long for me…:wink:


If I’m figuring it right - gain would be $1850 and that would be close to 3.17%. --Looks like a pretty good deal.


Word on the street indicates NFCU will be offering one or more special CDs commencing Monday, 7 January. I suspect other financial institutions will also be unveiling some higher CD rates as the new year gets underway.

Keep a weather eye.:wink:


I’m hoping this is true. I still went and opened a few CDs with Pathways CU since 4% for 40 months seemed unlikely to get beat by much for the moment.

But I’m hoping to see other offers matching/beating that soon so I did not put all my eggs in that basket.


Agreed. The Pathways deal was an absolute killer deal . . . . but it was only available to a select, elite, group of individuals smart enough to live in the right place.

Regrettably many of us, myself included, simply were unable to make the cut. :cry:


Yes it was very local unfortunately. We just happened to live in the area and coincidentally our previous credit union merged with Pathways in November so we became members without doing a thing. Proof that it’s better to be lucky than good.

But looking at rates to follow Feds moves, I’m expecting other 4% CDs to become more frequently available in January or February (at least I’m hoping because we’ve got a few CDs maturing in that time frame hehe).


I guess the wait is on… Hopefully NFCU will have a good one Jan 7…4-5% short term. Just noticed Sun East deal is gone.