CD Discussion Thread

CD Discussion Thread
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#485

Inova five and six year CD deals have turned turtle!!!

If you click my link not too far up thread entitled “Your humble link” you will see this. There is mass confusion/consternation over at Ken’s site. People there are in disbelief, and by the way:

So am I

I actually was considering the deal only earlier this morning. I decided “no”. But it never occurred to me Inova would pull the deal this quickly.

Analysis

You have to ask yourself: Why did Inova pull the deal?

Was there overwhelming local response? Was there not sufficient money, on the Inova side, even at the outset?

There has not really been enough time, yet, for a gargantuan national response . . . and especially considering there was a weekend and then Christmas eve and Christmas day for goodness sake! The deal only went live on the twenty first, and Ken did not feature it until Christmas eve.

Something is amiss. There is something fishy about how quickly this Inova CD deal has disappeared.


#486

Some unhappy folks over at Ken’s site.

Like you, shinobi, I was only considering Inova’s 5-6 year deals this morning. Sure glad I didn’t take the time to fill out the application. Bait & Switch!! But really, only 2 days & gone!!


#487

You bet!

From our standpoint, we have to ask ourselves:

Is the demand for high interest CDs so over the top that any new issue will meet this fate, i.e., only last a matter of hours?

I think not. I believe, instead, that there was something amiss at Inova. I think the Inova potentates made an error . . . and quickly acted to correct their error. That is my best guess, anyway.

In my many years of experience with CDs, the rapidity of withdrawal of the Inova deal is unprecedented. It’s no wonder so many people are nonplussed.


#488

No one mentioned Ally’s no penalty is up to 2.30% for 25K+ from 2.25%? Very quick to close current cd to checking then reopen new…done within a couple of minutes. Doing this does not affect the 1% bonus promo they recently had. The money just has to stay in ALLY for that.


#489

already reported 10 days ago


#490

Thanks.

Is anyone else subscribed to the thread but finding they are missing a few messages here and there in the emails sent?

It’s possible I missed them but has been alot of conversation I don’t recall seeing.


#491

Shinobi, you didn’t get into the Garden Savings 48 month 4% (actually a tiny bit over 4% if I remember right) deal? I remember you talking about it.


#492

Old age has overtaken me for certain. I actually could not recall and needed to log into my Garden Savings account! But can report I do own a sweet Garden Savings CD. They are showing an APY of 4.074% and an APR of 4.000%.

My error at Garden Savings, at least in light of events subsequent so far, is that I went in too light. :cry:


#493

Pursuant to discussion and comment up thread regarding higher CD interest rates coming in 2019, there is this which you might find of interest if you’ve not seen it already:

Goodness knows PenFed needs to do something about their paltry CD interest rates


#494

Do not make my mistake

I have discovered a significant error I made. It is related to my certificates of deposit.

I have some older certificates of deposit paying interest at a rate lower than today’s liquid money interest rates. The rates on liquid money have been inching up as the FOMC raised Fed rates through 2017 and 2018. At this point the available liquid money rates are, in some instances (only), higher than the interest rate on certain of my old CDs.

It is not always possible to withdraw CD interest without penalty. For those certificates you might consider, if it is permitted, changing the interest payout option from “reinvest into certificate” to “credit to savings”. Then withdraw the interest and put it into a higher yielding liquid money account.

It was a dope slap for me when I discovered this error. Making such mistakes is annoying. :slightly_frowning_face:


#495

It’s true, I also have some CD’s with a low rate. I discussed withdrawing these, but the penalty would make it not worthwhile.

In late January & early February 2019, I have a couple CD’s with Advancial that are only paying 1.91% & 1.93%. So I will just wait & get the rebate then. At the time I purchased these CD’s, I thought this was a decent rate. ;(


#496

I apologize for possibly having created a misunderstanding with my earlier post, which lacks clarity. It is only the INTEREST on these certificates I will be withdrawing, and then only when it is permitted to withdraw the interest without penalty. I am not closing the CDs themselves early because there is a substantial penalty for closure prior to maturity.

But it is dumb for me to leave interest in a CD when I can withdraw it, without penalty, and reinvest those funds right now at a higher rate than the CD interest rate.


#497

News just hit over at Ken’s website. The widely-anticipated “big deal” PenFed 2019 CD rate increase has turned out to be, in essence, a giant cypher . . . . . at least so far.

Happy New Year from PenFed. Prepare to pull out your money. I already yanked mine.:wink:


#498

I don’t have PenFed, guess I missed out on their last specials.

But, at this point when my Advancial CD’s mature at the end of the month, I will place those funds in EBSB 2.5%. Unless we see something around 4%, short term, 2.5% will be my go to spot.

It looks like a waiting game at this point. :wink:


#499

Heads up. New NFCU add-on CD is emerging, with formal rollout slated for (this coming) Monday, January seventh.

Deal is anticipated to be 3.25% for 17 months with a $50 buy in. Stay tuned.


#500

shinobi, I think this offer from NFCU sounds good. 17Mo CD 3.25% add-on. The problem I see is you can only have 1 CD per member. If it turns out to be an add-on CD, we don’t have to worry about a large opening deposit. So I guess we just wait until the 7th to see it listed.


#501

Yup. Buy in is scarcely more than pocket change. Course have to confess I already have one of these “great” add-on CDs at NFCU. It just sits there with fifty bucks in it, plus a tiny amount of interest. I bought that one as insurance which, at least so far, I’ve not needed.

But if this thing does materialize again on Monday I will give 'em another fifty. Cheap insurance and the “policy premium” even pays interest . . . . just not much.


#502

shinobi,

I hope the Navy CD materializes on the 7th. I ach’ed funds to NFCU just now, to be ready for the move.
…Don’t let me down!


#503

I promise to do my best! :grinning:

And thanks for the heads up. With all the PurePoint excitement this morning I very nearly forgot to ACH my fifty bucks to NFCU.

Time is short, but thanks to you I will make it.:wink:


#506

I am surely the last of the big time operators. :rofl:

Offer as proof my having just opened, online, a big whoop $50 NFCU seventeen month CD paying all of 3.25% APY. Only did the deed because it is an add-on CD. And even then you are limited to $50k. :stuck_out_tongue:

Hardly worth the trouble but it’s done now.