I have been in a bind as whether to go with PurePoint 1.60% & ableBanking 1.70% for liquid savings. That “10 cents” difference is beginning get on my mind.
I received the 2 small deposits today. It being Saturday, I was able to do the verification. You say you didn’t hear from Able after the verification for 3 more days.
I’ll now wait until Monday to give them a call. My money is now in Alliant CU waiting for make a decision on which way to go.(money gaining low % interest at Alliant)
Pretty close. Alliant 5 year cd is 2.3%. BND is 2.5% with a perpetual 7 year maturity. The cd probably beats it when you add the value of the optionality for early withdrawal. Also, a cd’s direct competitor is US treasuries. BND includes corporates.
To those of you that are buying these CDs regularly, what part of your portfolio is it replacing?
The bond funds would be the most likely candidate for the cd’s to be replacing. Personally I expect at some point the market will do an adjustment(on the other hand I’ve been waiting a WHILE already for that and it keeps going up and up) and I have money in no penalty cd’s and savings accounts available so I can take advantage of that should it happen.
I am going with AbleBanking.
Everything is set up as of today. The small deposits came on Saturday & all the follow up accomplished today. I can log into my acct now, even though there is no money in the acct.
I would have to say the rep that I worked with this morning was the BEST. I added AbleBank to my list with Alliant CU and should be able to ACH my liquid funds over tomorrow at 1.70%.
Oh I’ll admit the person I spoke with over the phone at able banking was super helpful…and they even donate $25 to charity for each signup (you have to fill out a form to tell them what charity you want it to go to) which is really cool. They just need to work on their signup to cut down on the time it takes. I ended up keeping the account since they opened it even after I told them they didn’t need to.
ableBanking is looking good this morning.
$250 out of personal acct is showing in ableBanking & first deposit from Alliant CU is also there. I still have that problem with Alliant CU, they will only allow $25K per day from their accounts. So it will take a couple days to move those liquid funds over to ableBanking.
famewolf, you said your big problem with ableBanking was the time it takes for the signup. That process actually went very well, even with a weekend involved.
Perhaps I was the exception and not the rule however Able Bankings decision to continue opening my account and withdrawing the initial $250 deposit in spite of me messaging them in the app system and saying “nevermind, don’t create the account” caused me to get dinged with a returned check fee on my transfer to live oak because they took my balance below the amount I planned to send to live oak. They pulled it late friday. I tried to transfer funds from another account but would not post to the account until Monday…the pull occurred before the funds posted. $25 gone.
I still have some concerns.
What is your opinion of the new Freedom FCU 3.04% APY three year CD?
Me? FWIW, I jumped in but did not “bet the farm” on this one.
There is so much financial uncertainty now with the falling stock market and all, I thought I could risk a (relatively) small amount of money on this deal. I’m not in the least confident it will work out. Heck, at this point I’m not confident of much of anything in the financial realm! 
But at 3.04% I shouldn’t lose my shirt, either. We shall see.
Did this one turn out to be an add-on CD? There was a lot of talk on Ken’s site about yes & no on add-on.
It is not an add-on CD AFAIK. But it is a three year CD, not five years. I like that.
Added Ally’s 12 month CD paying 2% for 25K+. 60 day EWP.
What did I miss that explains why so many rates went down? Ally was doing 1.75% on it’s no penalty and is now doing 1.50. Synchrony was doing 2% for a 1 year cd and is now doing 1.85%…plenty of other examples. With the recent hit to the stock market shouldn’t the cd’s be doing BETTER? There are still “ok” rates (for what we can consider ok for now) available but it’s not as prevalent as it was or at least looks that way to me.
These things are not related in the way you think. They said the reason for the market jitters were expectations of higher rates, so you’d expect CDs to offer better rates. On the other hand, all the money that flowed out of stocks has to go somewhere, and if they went into bonds or CDs, that would increase the prices and reduce the yields.
Agreed. Ken stated several weeks ago that a rising stock market tends to drain money away from CDs, forcing financial institutions to raise rates in order to hang onto existing deposits and attract new deposits in the face of a very attractive stock market alternative. Back then the stock market was ascending.
With the more recent stock market uncertainty, I can understand people are less inclined to abandon their CDs. This does not mitigate in favor of higher CD interest rates.
IRA only - IRA only - IRA only - IRA only - IRA only
This post applies to IRA CDs alone, NOT to regular CDs.
Be reminded that for your IRA CD (only), 3% APY on a two year CD remains available from U.S. Postal Service FCU. Membership is easy.
Boy do I ever wish this worked for non-IRA CDs as well. It does not.
Wow that’s a slick one @shinobi . Not really useful for me but I bet if someone was closer to retirement age it would be a solid place to park some money.
NASA Federal CU has a special 11 month Share Certificate (CD) offering at 2.25% APY with a minimum deposit requirement of $20,000
$20 to join the “National Space Society” and be eligible for the NASA Federal CU unless you meet one of the other choices.
When I joined NASA Fed CU, the membership to the National Space Society was complimentary ($0). I don’t know if that’s still the case.