CD Discussion Thread

CD Discussion Thread
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Sure, pattyb53. Not a big deal.

Here is a link to Ken’s blog

Here is a link to the Bogleheads best CD rates thread

Hope you have good luck with your new computer! :grinning:

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Ken has now blogged, full writeup, regarding this Andrews deal I posted up thread six days ago.

Link to Ken’s blog post on the Andrews CU 3 month CD deal

I don’t know which would be worse… 84 Mo 3.29% or 3 Mo 3.01%.
84 Mo- to long a time for me, 3 Mo- to short a time to be worth the effort.

These 2 accounts might work for some. I have several old CD’s that will be maturing in 3-4 months so I will be searching for placement of these funds. The 3 mo CD would mature right along with my others. But nice to hear of these movements. :woozy_face:

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Lest we all forget

It’s a busy time of the year what with this being Thanksgiving week and so forth. Black Friday happens only one day later. So I’m offering a reminder post here . . . nothing new . . . just a reminder:

At this writing the two Keesler 30 month CDs continue to be available. Both feature Keesler’s weird “jump up” rates, so DO NOT invest unless you plan to hold onto the CD for the full 30 months. If you do that you’ll be fine.

The first CD requires you invest at least $1000. The blended, bottom line, interest rate across the 30 months is 3.1% APY.

The second Keesler CD is their jumbo. It’s the same “you gotta hold” situation, and you need $100,000 to play. The APY on the jumbo is only slightly higher at 3.2% APY. To see these rates, go here, click on “certificates”, and scroll down.

It’s unknown how much longer Keesler will be able to hold these high rates. But with the end of November approaching rapidly, if you want the rate it might be well to act promptly.

The only other decent CD out there is, of course, the 3 year 3.25% APY at PSECU. Everyone already knows about this CD. The deal dies a mean and ugly, and final, death this coming Saturday. I opened my third CD yesterday. On this one we all need to hope for the best, meaning if the add-on feature changes or evaporates it’s all over.

Yes, the unknown!! Thanks, shinobi for the updates…

I did pick up one of the Keesler 3.2% CD’s, that will mature 2/28/22. So I will just hold tight for now. The wait for me would be 2/20 for my first old CD’s to mature.

Ken has just posted a very nice 3.03% APY five year CD deal, at Lafayette FCU in Maryland, but available to anyone who has at least $500:

Link to Ken’s new five year Lafayette deal

“Lafayette, We are Here!” :grinning:

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Good rate in this current environment, but take note of the punitive EWP of 600 days for this 5yr CD.

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Thank you, scanchain, for pointing that out! Good job. I should have noticed that aspect, but I failed to do so.

I’m noticing about myself these days that I pay very little heed to possibility of having to close out any CD early and pay the penalty. It’s because I’m instinctively not anticipating significantly higher interest rates in the foreseeable future.

But you all need to be aware, as I’m certain many of you are already, that my instincts could be wildly in ERROR!! I cannot accurately forecast the direction of interest rates. Gosh, it would be wonderful it I could! :grinning:

Thanks shinobi…

This rate caused me to check to see maturity date, 12/2024. I see that I have Navy FCU 3.5% CD’s that mature in July, 2024. So actually 3.03% might be worth looking at.

Of course we also obtained those Sharonview 4% mature 2023. I was so unthinking at that time. Should have bet the farm then. :woozy_face:

Ditto

I went in WAY TOO LIGHT at Sharonview . . . and at Garden Savings, too, at an even higher APY! This happened because I’m an idiot who, at the time, believed rates were trending up. Groan :unamused:

I was on the same page. Didn’t even get in on Garden Savings. What a dope! Figured times were going great & an even better rate would pop up. Then the top of the mountain dropped!! :rage:

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FYI, their rate sheet seems to run Wed to Tuesday. While there’s no guarantee, of course, it’s likely a rate decrease will happen on a Wed morning.

And a little quirk with Keesler I found - when using their ACH system to pull in money, that money posts and is “available” the same day as the transfer request, even before the close of business that day. I don’t think it accommodates typical CD-size dollar amounts, but handy none the less (I was a couple thousand short of a jumbo CD, and was able to quickly pull in the difference.)

Interesting. I write this as of Thursday early. And of course it is now December.

Keesler’s rate on their 30 month step certificates remain at the prior high rates of 3.10% APY and 3.20% APY on the jumbo!

Those have to be among the highest interest rates in the USA right now for any CD. Where else can you take little as a thousand bucks and earn 3.1% APY!

I’ve written it up thread before and now here once again:

Keesler is one of those credit unions where you just gotta be a member.

Thanks for the reminder… I’ll have money Feb, 2020. Hopes Keesler’s rates remain competitive.

No new CD deals in this post. This is regarding interest rates going forward. Two things:

First be aware the November employment report will be released at 8:30 am today . . . in less than 1/2 hour.

Second, here is an article which discusses future interest rates:

Link to article

It is a worthwhile read. Couple of pull quotes follow:

Over the last several decades, in developed countries, interest rates have shown a notable trend downward. This trend is long term and systemic, transcending the temporary interest rate fluctuations caused by business cycles, one-off economic shocks or short-term monetary policy.

One contributing factor seems to be low fertility rates and aging populations in rich countries. Partly because people tend to save and borrow different amounts at different times in their lives, an aging population leads, on the whole, to increases in the supply of savings and decreases in the demand for loans. Another factor is the falling productivity growth of developed economies in the last few decades, which also depresses rates by decreasing demand for loans. Rising inequality may also be at play, since the rich tend to save proportionately more than the poor or middle class.

If benchmark rates fall well into negative territory, one option would be to embrace the new upside-down world and impose negative interest rates on deposits.

ETA

November report is nice:

Hourly wages rose 3.1%

Payrolls rose 266K

Unemployment rate fell to 3.5% (50 year low)

ETA

Revisions to prior months were also positive. From CNBC:

In addition to the robust November gains, revisions brought up totals from the two previous months. September’s estimate went up 13,000 to 193,000 and the initial October count increased by 28,000 to 156,000. Those changes added 41,000 to the previous tallies

My personal analysis: Things could be worse! :grinning:

This is regarding the PSECU ATS (automatic transfer service). This is only my data point. It is based on my personal experience and one single incident.

Beware the 30 day promise where PSECU says you have 30 days from opening of CD to set up your ATS by telephoning them. This promise is only good provided the day you want to call and do the setup is a business day. You cannot call in and set up an ATS on a Saturday or on a Sunday. Hence, if your day 30 falls on a weekend you do not actually have the promised 30 days. Reason weekends are out is that the PSECU certificate administration department is not open on weekends.

I just tried to get the full 30 days and was denied because my day 30 falls on Sunday. They will not adjust or make allowance. I was cut back to 28 days which, frankly, hurts just a bit. Live and learn.

Fortunately for me I have one other iron in the fire, which can save me. But if that goes south for any reason, i.e. a change of policy, I will be SOL.

I don’t see this happening soon. Would you deposit money at a bank guaranteeing you to lose some of your deposit? That would totally kill the deposits market and affect the lending markets as well. Could be good for gold and other commodities which tend to hold value though. But the trend is undeniable even if it doesn’t get to these extremes. Which means for the moment securing long term CDs with decent rates or looking at alternative fixed income investment is probably a good idea.

Answer to that would depend on my available alternatives.

We surely do agree there!! :wink: