CD Discussion Thread

That’s what their number reverse-calculated to be.

That is exactly what was done. I always thought it was a look back period, being penalized equal to the last 6 months of earned interest, but apparently it is equal to what you would’ve earned over the next 6 months.

Something doesn’t seem right, unless this was a (huge) step up cd, or you more than doubled the principle (add-on CD?). Either that, or I misunderstood your comments:

1 full year earned <250
6 months would earn 310
rate is 2.25%

Yes, this was an add-on CD I’ve added money to over the last 6 months. I wanted some near-term liquidity, waiting until this summer to decide to tie it up for the remainder of the 5year GTE term.

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The following was posted by Ken Tumin earlier this week on his DA dot com website:

Safety of the Banking System and Your Deposits

Even though the banking industry is in a much better position now than it was in 2008, the pandemic is stressing the financial system. Weak banks and credit unions will have a higher chance of failing over the next year. Thus, this is the time to be extra careful that your deposits are within the FDIC and NCUA limits.

I would add to that as follows:

It is a time to be certain your deposits which ostensibly are backed by NCUA or FDIC insurance, actually do carry such insurance in reality.

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As of this morning Weiss Ratings has made available credit union ratings based on Q4 2020 financial data, the most recent available. Here is a link to the Weiss page:

Link to the Weiss Ratings page

GTE Financial appears only very slightly the worse for wear, if at all, and has maintained its “C+” rating.

Freedom Credit Union is holding its own with an “A” rating

The rating of PSECU is unchanged at “B+”.

Bottom line, most of the financial institutions I follow appear to be holding their own after a solid three quarters plus of pandemic. We will know more come mid to late June.

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Today my Keesler HIMMA + rate dropped from 1.45% to 1.40%. :relaxed:

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Hi Shinobi,
Thanks for the link to the Weiss page. Checked it out for the first time. Interesting.
Too bad it is no longer able to join Keesler for me but I sure am glad for PSECU add-on CD. Thanks to you!

Alliant was upgraded.

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Ken Tumin wrote as follows a couple of days ago:

Even fewer credit unions have failed in the last year. According to the NCUA Conservatorships and Liquidations List, only one credit union was liquidated in 2020, and none have [sic] been liquidated as of March 31, 2021. One was placed into conservatorship in 2020, and three have been placed into conservatorship this year as of March 31, 2021. In a conservatorship, the NCUA takes over the management of the credit union with the goal of resolving the issues. If the issues cannot be resolved, the NCUA will either arrange for a merger of the conserved credit union into a healthy credit union or liquidate the credit union.

Monitoring WJR (AM 760 - Detroit) early this morning I was surprised to learn from Paul W. that the ongoing wastewater reservoir crisis in Florida is in the Tampa region:

From the internet:

Florida governor Ron DeSantis has vowed to prevent a “catastrophic flood” near the major city of Tampa. A leaking toxic wastewater reservoir has the potential to cause an environmental crisis in the region.

This post is intended only to raise awareness of the proximity between this crisis and the Tampa Bay region. I live very distant from there. Prior to hearing the news on WJR I had not connected this crisis in any way with Tampa.

Impact on GTE? Probably not. But GTE is of great interest to me as it is I know to other participants here. So I follow anything happening in the Tampa region which could turn out to be important to GTE’s prospects.

This will probably be fine. But, sure, I would be happier were something of this sort not happening so close to my valuable GTE add-on CD. I will be monitoring the situation a bit more closely than I was prior.

The new Advancial five year CD rate of 1.94% APY might be of interest to some of you. There is a large wrinkle in that becoming a member could turn out to be highly problematic. I’m not a member and I dunno what it takes to get in. They do have an extensive SEG list. If you want to pursue this you can start here:

Is there a way in?

paying special attention to where it says “member of a partner organization”. Or you could telephone them.

This is a long shot, but the interest rate is somewhat attractive. The EWP? I do not have it.

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Yes I had an Advancial acct with $6.20.
Called & it’s no longer open. They say the account went dormant.
Bummer!
This CD sound fair. I have a CD maturing this month.
I may reopen this account.

Again, I’m not an Advancial member. Wish I were because they, from time to time, have some pretty decent deals.

Above all, whether you sign up for that CD or not, do not lose your Advancial membership. Job #1 right now is to ask them what you need to do to restore your active membership standing. Following that you can decide at your leisure about the CD, provided it remains available.

Dunno how you managed to get into Advancial. You’re a pretty sharp cookie, pattyb53. Well done.

Nasa FCU 49 month CD 1.5%, 10k min
Thanks bankdealguy website

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I don’t think their membership was too strict. It appears that they’ve tightened up significantly. Odd, but their HQ seems to be in Dallas (with an appropriately imaged woke website), but their membership seems to be limited to south central Louisiana. I thought they were based in Lafayette.

Appreciate that. I was confused.

Interesting. I, too, thought of them as being Louisiana based.

Hmm… Different part of LA but you guys could send the money to me. I will find a cousin to open the account for you. Just a small handling charge will apply.

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That was three days ago. Ken Tumin has now posted on Advancial, front and center of his page this morning. As usual, Ken’s writeup is very complete, professional, and worth your time to read:

Advancial Long-Term Jumbo CD Rates Increased Significantly

Langley FCU is offering a Promo 15 month CD paying 1.00% APY. $25,000 is the maximum allowed deposit and it must be new money:

Link to Langley deal

I don’t like this deal for myself and I’m not even a Langley member. But this at least is a fairly short CD, Langley membership is easy to obtain and it is a very good credit union of which to be a member.

Ken says:

Membership in Langley Federal Credit Union is open to anyone through joining the VersaBility Resources ($5 fee), Friends of Carrollton Library ($5 fee), Friends of Suffolk Public Library ($5 membership fee), Friends of Gloucester Library ($5 fee), Friends of Poquoson Library ($5 fee), Friends of Portsmouth Library ($5 fee), or Virginia Association of Museums ($15 fee).

And there are other ways in, as well. So you can get in.

This might be a good CD for someone who has no add-on opportunities or Keesler membership, and who prefers to remain short.