CD Discussion Thread

The “bonus” is just a distribution of the credit union’s excess profits for the year.

And I’m pretty sure there’s a thread specifically for this topic, from last year. Discussion should continue there. Edit: It was actually this thread. So carry on. :slight_smile:

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For those like me with tons of Penfed CDs maturing, just curious where people end up parking that money at the moment.

We’re likely moving it to addon CDs (3.3% for 3.5 years) but I’m not sure this is the best solution.

Add-on CDs are good options. Unfortunately, I didn’t have any of them. So I ended up purchasing a few MYGAs, with maturities 3yr, 4yr and 5yr.

Which did you go with if you don’t mind sharing? What kind of rates did you get overall for those terms?

Besides the differences between FDIC/NCUA insurance vs. state guarantee fund ($250k in my state), anything else to watch for?

I purchased them last year Jul ~ Sept and they were all slightly above 3%. Now the rates have gone down some to 2+%. Browse what is available for your state at

MYGAs have high surrender penalties so make sure you plan to hold them to maturity. There is also a 10% tax penalty on the earnings if you withdraw before age 59.5. But this can be avoided by rolling into a new MYGA when the old one matures.

If you have 3.3% add-on CDs, that seems to be a better bet.

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Lucky gal, nice add-on CDs.

My first high rate CD is maturing end of January. Unluckily more CDs maturing during this year. At this time I will be placing those fund in Keesler’s HIMMA+ accounts.

Those MYGA rates are good but I don’t wish to tie up funds for such a long period.

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I’m just a bit reluctant to put all my eggs in that GTE basket. I already have about $105k with them in that CD so adding the money from my penfed CDs would still fit under the NCUA insurance limit but I wouldn’t want them to go belly up and having to find a new home for that amount of money in the current rate environment. Or risk getting stuck with that interest rate for the next 3.5 years if inflation starts ticking back up.

Oceanview just introduced a 2-yr MYGA @1.75%. According to DA, the best nationally available 2-yr CD is just 1.04%. Oceanview is rated A- by A.M. Best.

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But you are already finding a new home for that amount of money in the current rate environment. Either you stash it in a liquid .5% account hoping rates will rebound, or you let it sit at 3.3% until they fail and you need to stash it in a liquid .5% account.

I have no concern about rates going up to the extend I’ll regret using the GTE add-on. The excess it’ll earn now will subsidize a lot of underperformance 3 years from now, if rates do go up that much.

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That what I was thinking as well. It’d take quite a bit of rate increases in the near future before I’d regret locking in 3.3% instead of the prevailing current rate for 3-4 yr term. Just nice to have others confirm that it’s not a stupid move. :slight_smile:

Yesterday’s CU Times carried an article on this “stuff” which mentions four credit unions that pay year-end bonuses:

Four CU opportunities for year end special dividend payments

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Thanks… Is Empower the only one of the 4 you have? Do you have a CD or Savings there?

Yes, the only one. I have a CD there . . . . which matures this year.

Did any of you open an account with Sun East FCU? Probably 2-3 years ago.
At that time they offered 27 Mo CD Special 3.5%. I accepted & the CD’s mature in March, 2021.

Yesterday I received an e-mail from Sun East FCU. Before your 27 Mo CD matures, pick one of the following exclusive renewal options:
13 Mo CD at 1.0% APY
27 Mo CD at 1.50% APY

I called & told them to renew my CD’s when they mature. Rate seems pretty good for now.

Sure did

A lady from there telephoned me a couple of days ago and showed me that deal.

I had to explain to the lady what an add-on CD is. :wink:

So are your Sun East CD’s, add-on’s? If so, better deal…

I will be on the lookout for higher rates, but at this time “a bird in the hand”.

No

I needed to school the rep about add-on CDs so she could understand why it was I had no interest in her offerings, which are at far lower APYs than are my various add-on CDs. She was unfamiliar even with the concept of add-on CDs. Sun East does not offer them.

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Are you still adding on to your PA State CD’s?

No, goldendog. That stopped last fall. The dollar values were becoming too high and, perhaps more important, the maturity date became too close. I “shut 'er down” with maturity at (roughly) two years.

I have other, better, much lower maintenance, add-on CDs which will protect me out to 2024. After that, if interest rates have not improved by then, I’m gonna be in a world of hurt . . . . . . . assuming I’m even still alive in 2024. :grinning:

I’ll have to admit that shinobi was the smartest CD man around in past times

Yes, I jumped at all those 3-3.5% short term CD’s. I wasn’t thinking about going for add-on CD’s being more important. Well, our balloon burst last year & now I’m longing for any 1.5% rate or better now.

Really bad, for me, because though out 2021 I have many great CD’s maturing. :flushed:

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