CD Discussion Thread

It is important, pattyb53, never, ever, to attempt setup of an ACH link at Alliant unless the account you are linking has at least $1 available. Here is why:

The Alliant ACH linking process involves deposit and withdrawal of a small amount of money, always less than $1. If you attempt to withdraw even a tiny amount of money from an external account wherein that amount of money is unavailable for withdrawal, you will be slammed with in ISF (insufficient funds) fee.

“But wait”, you protest, “didn’t Alliant first deposit an amount of money exactly equal to the attempted and failed withdrawal?”

Yes they probably did. But until your Sharonview savings account balance reaches $5, no withdrawals of any kind are allowed. There is a required $5 minimum balance. Try to draw on that and you will receive an ISF penalty.

Sharonview will almost certainly reverse your $32 ISF fee. But life is a LOT easier when you do not incur such fees in the first place. Also, the lesson taught by your difficult and vexing Sharonview experience will serve you well when doing Alliant ACH linking to almost any other financial institution.

Word on the street at this hour says the Sharonview 4% CD deal will die a mean and ugly death at 5:00 ET today, Friday, roughly 30 minutes from now. RIP Sharonview deal. It was a very intriguing deal.

BTW, at this very moment they continue to feature the deal on their website. Maybe they figure people will be able to do the deal, start to finish, in thirty minutes!:grin:

Why do I have to learn everything the hard way!! One lesson I learned today, wait until the savings acct is open before I mess with it. But I thought it was…

My funds are still in transit, but I did call my agent. He agreed to wave the $32. He also made note on my account to accept the CD funds when they arrive even if the offer is closed.

The CSR did not tell me the offer would end today. I see this deal is dead!

There is a difference between an account being merely open, and that same account having at least $1 available for withdrawal. Without at least $1 available, no Alliant ACH linking should be attempted.

Sharonview 4% CD.

I have continued to track my Priority Mailed check. 2-day mailed 3/5, promised arrival 3/7, tracking shows 3/10, delivery final made. Tracking mail shows weather is the cause of delay. Of course today being Saturday, they will not open mail until Monday 3/12.

This deal is almost a joke, when you read all the scenarios posted on Ken’s site.

shinobi, Just for information, did you open & fund this deal without a hitch?

I think this is a fine deal. There are a lot of thread crappers on Ken’s site, where apparently they are coddled. Not my problem.

I did get the deal but my more recent CD was opened using wired funds. I was fearful the deal would end on 3/9, and I didn’t want to mess around, so I wired the funds and suffered the $10 incoming wire fee. There was no outgoing wire fee for me. Overall my Sharonview experience was quite good.

When evaluating Sharonview it is important to take their location into account. Some people might not be familiar with that region of the Carolinas. It’s a pretty good area. I do not expect trouble with the Sharonview CDs, and especially not considering the economy is picking up with Sharonview being located in a venue generally friendly to business and growth. It’s not as if the credit union were in Illinois, for example. The Carolinas are alive and thriving, not circling the drain.

Umm, yeah. Charlotte, NC is the largest financial center in the U.S. outside of New York City.

Actually I had the Piedmont region of SC in mind, not Charlotte. Also, western NC is a pretty good region.

shinobi, Sharonview finally got my deposit check to open the 64mo CD 4%, 3/12.

Definitely deal is closed as of 3/9 to any new additional CD’s at 4%. When my agent finally called at 4:45 pm today, to say he received my check. I tried to see if he would open another CD at the original rate. NO!, but he did say to keep in touch if I wanted to add more money at today’s rate. No, not interested.

So it’s good that you beat the cut-off date with your additional wire on 3/9. Lucky you.!!.

NASA FCU 2.25% APY 11-Month CD
$20,000 Minimum Deposit Required

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Live Oak Bank has raised most its CD rates: 6-month (1.95% APY), 1-year (2.15% APY), 18-month (2.40% APY), 2-year (2.55% APY), 3-year (2.60% APY), 4-year (2.65% APY), and 5-year (2.70% APY). There is a $2.5k minimum deposit requirement, with a maximum $250k per account.

That six month is interesting. Wish they offered a three month or a four month.

Wish this was at a different bank. I’d move the money from Ally’s No penalty CD paying 1.75% over to that 6 month paying 1.95% but I already have the FDIC limit at Live Oak and not interested in going over it. First IB’s 2.10% 12 month is somewhat tempting since I have a relationship with them and don’t currently have a cd there…

Right now, as far as I can see, nothing looks to great as far as CD’s are concerned. We can still get pretty good liquid savings rates. I use AbleBanking 1.70%. Live Oak 6-mo CD 1.95% is ok, but too much trouble to bother.

I have a couple CD’s with Navy FCU that mature in April. Small amounts $20K each, so I will be looking for a placement. We all still have those GTE Financial add-on’s 2.78%.

So, I’m still on the look-out for a good deal.

Agreed. I’m on the prowl myself and coming up totally empty. Am no longer willing, and this has been the case for a while now, to do 3% for five years. That’s a sucker play in my view. I need better terms than that . . . . either a higher interest rate or else a shorter CD.

But at the same time, I’m also not doing anything south of 3%, either. The current situation reminds me of gasoline. You know:

When they raise the price of gasoline it happens really quickly, almost overnight sometimes. When market circumstances favor decreasing gasoline prices they fall so slowly, so very, very slowly.

And so it will be, I think, with interest rates. Right now rates of serious CDs, longer term CDs, are rising very, very slowly. I feel safe in cash and very short term CDs until and unless I smell a change in the direction of interest rates.

Listening yesterday to Bob Brinker, I got an earful. He was recommending a CD ladder consisting of three month, six month, nine month, and one year CDs!! Not saying I concur or disagree with Bob. But he certainly was not suggesting anyone rush out and ladder up with five year stuff!!!:wink:

I have the opportunity of 2.75% 18Mo CD, which would make the maturity close to 9/19. Short term in my thinking. But rates seem to look upwards as far as folks on Fox Money are saying.

But some of us have those GTE Financial add-on 2.78% CD’s maturing 4/20. My thoughts are to hang on & see if predictions hold true. Always having the GTE add-on’s handy if rates don’t take a leap.

What say others?

t

You should factor the early withdrawal penalty into the equation. What I would do is calculate the effective interest rate if you held the 2.75% CD for one year and then cashed it out. Would the effective interest rate be anywhere close to 2%? If so, I might go ahead with that.

Frankly I am buying six month CDs right now. That is it.

Well, OK, shorter than that when I can.

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In light of events subsequent, and following further review, I now believe I went into Sharonview too light.

Attempted to take a moderate approach. Now realize that course was an error. I did not take advantage of the allowed quarter million, which I am today thinking was a gift I foolishly declined.

Am happy I at least got some money in. Something is better than nothing. But if another 4% deal surfaces it’ll be time to get serious and move out in earnest.

Yes I almost missed out on Sharonview. I felt at the time the length 4%, 5+ years was to long for a CD. It is my only 2023 maturity deal. By the time I decided to go for it, & the postal delay was a bit critical for me.

I did put a nice amount of money into this CD at the time, but not nearly $250K. I am pleased with my final decision.

Now we wait! I decided to forgo the offer 2.75% 18-Month CD. I’m going to be on the prowl for at least 3+%, & not more that 3yr span.