I hope he’s wrong. I have a ton of money in Penfed 5% 10-yr CDs maturing early in 2021 and although I’m not expecting to get 5% interest again any time soon, APY somewhere in the 3s would have been nice. Not much I can do about it though.
It’s funny…on one of his previous posts he said 4% cd’s were gone and to lock in now while you could…and he was right…but I went to get a cd that was 3.6something percent and that very day the rate dropped to 3.51 percent…I was so ticked off but I locked it in anyway…now I look back at that short time back and am so glad I did. Your 10 year 5% cd’s had me coughing though…I heard this mickey mouse voice in my head say “I want one!”. 
I wish I had put more into them than I already did, believe me. I had money with them maturing from 6+% CDs and I hesitated a bit due to the length of the 10-yr term. In the end, went with just a bit short of NCUA limits but could have probably squeezed in another $50k or so. Ah the good ol’ days when Penfed rates were competitive…
I’m checking into this one. Application seems quite easy. 2.57% for a cash account (as they call it) has possibilities. I call it another Liquid Savings with a decent % rate.
I’m going to open the new account with $500 & give myself some time to figure out the kinks. The biggest problem I see is “how long will the rate last”? 
The biggest problem I see is that, should one of their banks go belly up, you must work through an intermediary to collect from the FDIC. . . . with funds possibly being paid out first to Wealthfront.
I am suspicious to the max about such arrangements as this and would not consider this deal. When I do business with a bank or CU I want it to be my personal name, right there in the financial institution’s records, for the FDIC or the NCUA to find should there be trouble. I do not want to be forced to deal through some third party I’ve never heard of should circumstances become extenuating or troubled.
Well no rate guarantee is an obvious negative. Another is making sure you don’t already have funds at the member banks to ensure your FDIC limit is not exceeded. However one positive is that there is no limit on transfers in and out(no 6 transfer limit).
It seems to me that if you notice the % rate start to decrease, transfer the funds out immediately. Yes, this account will have to be one that I keep on a constant eye.
I don’t know, I did some reading on Wealthfront. Doesn’t sound bad, but who knows. Question for thought!!
From Ken’s blog:
One thing Wealthfront admits in this blog post is that they will have to lower the rate if and when the Fed cuts the target federal funds rate:
If the rate is lowered by 0.25%, then we will have to lower the rate for our cash account by the same amount.
This at least gives some hope that it will stay at the current rate until this happens.
Another negative at least for now is that all ach transfers MUST be made from the wealthfront side…they do not allow you to initiate externally.
I’ve got some of those Penfed 5% CDs, as well.
I know it’s not much over 3%, but opening up one of the GTE 5 year add-ons would ensure you’d get at least 3.04% when you want to re-invest the Penfed money.
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0.1% is hardly a crashing noise, Chicken Little. Also, what’s with the rhetorical questions? 
Oh my goodness was I fortunate!
As of today, this Friday morning, the interest rate on all those thirteen month PurePoint. NPCDs that I was buying earlier this week at 2.5% has fallen to just 2%. I did not see this coming.
Q: Seems like you did see it coming. Somehow. No?
Honestly, no. I did anticipate a reduction in the interest rate at some point. I did not see coming such a large decrease in the rate. And I thought, if it happened at all, the reduction would take effect with commencement of the third quarter, this coming Monday.
There must have been many other PurePoint. customers out there who, like me, smelled a great deal at 2.5% and were taking advantage of it while they could.
But it is VERY hard to get stuff like this right and I fail at the attempt more often than I succeed. Still, this time I lucked out as never before. Whew. Amazing stuff!!
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Those PurePoint rate cuts was not just on the no penalty CDs, but looks like across the board, half percent cuts.
I’m very happy to see Wealthfront Cash Account 2.57% is now on Ken’s site.
This Cash Account is just another holding spot with $500 to tide me over if needed for future time. I have my Promo Grow savings 2.75% guaranteed until early 2020. I also have an old Add-on Savings account 3%, maturing 10/20.
Hopefully things don’t keep going down.
You’re right. Plus by then, it’d be a 40 month CD only so that rate may be as good as it gets. Send me a referral code if you want… I’ll probably open one as insurance policy unless someone can point to a better add-on CD currently available.
CIT dropped their Savings Builder account from 2.4% to 2.3%. They had previously dropped it from 2.45% to 2.4%.
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Did any of you take the Capitol One 360 deal in February? It was the one that paid 2%, on $50K deposit. After 90 days it should pay out the $500 bonus.
I did & as far as I can see my time is up July 8. Just wondering if anyone par took of the deal?
Does anyone know when I pull money from Alliant today funds from another bank), will my funds be ready for use at Alliant by tomorrow? Thanks! I understand that when you pull funds using Ally, I will need the funds to sit for 3 days before I transfer it out again am I right? So confused.
Thanks!
I opened the account January 22, and deposited $50K on February 1st. Bonus of $500 was paid out May 3rd.
I don’t see any $500 in my account yet. I wrote down July 8, for the bonus to show. Did you take everything out & close account on May 3rd?