5-yr non-callable brokered CD now at 4.8% (available from Fidelity).
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They are pretty comparable to brokered CDs. Aside from tax treatment, I dont see a material difference. Besides the fact that a CD passes through a private entity before being backed by the federal government, while treasuries are backed by the government directly.
I think they’re comparable to brokered CDs when purchased from a broker, and bank (non-brokered) CDs when purchased directly from the Terasury.
I think the only difference between CDs and Treasuries is that with Treasuries there’s no choice to receive monthly interest, you only get paid at maturity.
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Is that true for all, or just the shorter maturities?
I was on mobile, and too terse, apologies. I concede Treasuries are very similar to CDs, but with two big differences.
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if you have to cash out a Treasury early you’ll have to accept market rate. Their price will go up if rates have fallen and down if rates are up. Doesn’t apply if you hold to maturity.
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Treasuries are a huge market, with lots of money and brainpower looking for deals. I don’t have much faith that I will notice good deals in that market that everyone else has missed. With most CDs (except brokered) institutional investors are locked out of the market generally, and the amounts are too small to attract institutional investors anyway. I think especially No Penalty and Add-On CDs can be fantastic deals that wouldn’t survive if the market were more efficient. So over in CD land I keep an eye out for $20 bills lying on the street, but in Treasuries I don’t think I’ll be quick enough to spot them first.
Treasuries can still be better than CDs, and especially for short terms we’re in one of those times now. But I think they’re different enough that they should be considered a separate asset class and have their own thread. I’d love to understand more about how 5-30 year Treasuries fit into someone’s portfolio, I don’t see a reason why anyone would hold them over some percent shorter bonds and stocks.
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We’re not talking about 5-30 year Treasuries here, the exact quote you responded to mentioned 2 years or less. We’re also not talking about the yields you have to hunt for on the secondary market. You can buy them at the auction, and the yields are basically known in advance since they don’t move that much.
For those who don’t need to cash out early, it’s the same as CDs.
We already discuss Treasuries in the I-Bonds thread, and I think that thread is totally appropriate for such discussion. But Treasuries weren’t brought up here for discussion, they were brought up to point out that the short-term yields are higher than CDs, especially for those with state income tax. IMO short-term Treasuries for most purposes are not different enough from CDs to prohibit their mention here.
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Ally 11-month no-penalty CDs have increased from 4.00% APY to 4.75% APY
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Someone posted this on DOC. Ally is on the list.
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Shorts are going to pounce on these stocks next week.
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Discover is back with a 5% 5-year brokered CD. A couple others at 4.8%.
There are also 12-18 month new issues with a yield near 5.5%.
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I also saw some 2-yr CDs at 5.25%. The drop in the corresponding treasury yields in the past few days have made CDs competitive again.
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Did you buy any? I bought some this morning.
I have a CD that matures today at Langley FCU. Checking in I’m surprised to see a new 5% 15 month CD offer advertised today.
The credit Union had already replaced my funds into a 3% 12 months CD. Luckily for me I had it changed to their new 5% CD. 
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Time to remind everyone that while treasuries are fully backed by the Federal government, any CDs over $250k per bank (per registration) are only backed by the FDIC and they’re feeling a bit nervous these days.
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No, I locked in relatively big with GTE a couple months ago, and now only have my wait-and-see money - and I’m willing to continue waiting before chosing a home for it.
I dont think we’ll see 6% long term rates, maybe not even 5.5%, but I’m betting it gets a little better than 5% before it starts getting worse.
Bought the 5.25% 2-yr AmEx non-callable brokered CD from Fidelity this morning. The 2-yr treasury is only yielding 3.89%.
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Sun Canyon Bank has a 1-year CD Special at 5.35% APY w/$5k minimum deposit. Available nationwide thru online application.
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the 6mo alliant cu is 4.75apy since 3-16-2023… did it drop from 3-1-23?
Yes.
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Post on CDs in bank failures cross linked to the bank failures thread. There can be headaches and lost interest.
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