CD Discussion Thread

Disclaimer: This is an advice only. This is NOT a recommendation.

MSU FCU is offering a five year CD paying 1.35% APY, provided you have $100,000 to invest. Don’t have that kind of loot? OK, they will still pay you 1.1% APY on a five year CD even if you can open only for $500.

Link to Michigan State University FCU rate page

Please scroll down.

Not a MSU alum? Not to worry. Ken advises:

Membership in Michigan State University Federal Credit Union is open to anyone through a $10 donation to the MSU Alumni Association (joining MSUFCU and making the $10 donation can be done simultaneously using the MSUFCU’s online application). Anyone who lives, works, worships, goes to school, or owns a business in Oakland, Genesee, Lapeer, Livingston, or Macomb Counties in Michigan is also eligible to join. Membership is also open to faculty, staff, or students of Michigan State University. Employees/members of more than 250 Select Employee Groups, including all State of Michigan employees, are also eligible to join.

#fiatcoin
:smile:

I received the terms and conditions for opening this NFCU CD for the associated bonus. The written terms still (or now?) mention a requirement for DD or an allotment, as well as a checking account, or the the interest rate will be lowered at the 90 day mark. I think I will ride it out for 90 to see that actually happens or if NFCU is still waiving the requirement as I reported above.

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Stopping by here this morning to document a good experience I just had at PenFed. This for whatever help it might be to others:

My old Valor (Tobyhanna) seven year CD, which was moved to PenFed when they absorbed Valor, matured over the weekend. I telephoned PenFed this morning when they opened to wire the funds to GTE for my add-on CD there. Can tell you:

It was a very smooth process wiring funds domestically at PenFed. There is usually so much BS associated with this process; not at PenFed. It’s very easy and straightforward, with no signatures and nothing having to be put in writing. Was able to handle the entire matter over the telephone. The cost for my wire was $25, and well worth that much money given the size of the wire.

Now of course things could go south for me later today. That’s always possible. The Fed won’t open for over an hour, and my funds cannot move until they open. If trouble ensues I will return here and tell you what happened. But so far so good. I’ve never wired funds more easily. :slightly_smiling_face:

ETA

Well, everything at PenFed went just fine. They moved the funds out just as soon as the Fed opened, and the money is already in my GTE CD earning a higher rate of interest (3.25% APY) than I was getting at PenFed. :laughing:

But there was an unforeseen wrinkle. Should have thought of it and seen it coming. Didn’t:

GTE hit me with a ten buck incoming wire fee. :unamused:

Cannot say as I blame 'em. They need those funds like another hole in the head. Oh, well. PenFed at least more than met all my expectations, and that was the reason for this post in the first place.

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Reminder

Not everyone does, I realize that. But if you are a CD owner who prefers to follow the fortunes of the financial institution(s) where your CD funds are on deposit, June is your month:

Later this month you can expect to learn Q1 2021 ratings for banks and credit unions. Ken usually publishes this information first, followed not too long thereafter by the updated Bauer ratings. Weiss is customarily last to publish. While I hope for the updated Weiss ratings this month, I would be more confident saying they will be released prior to Independence Day. Still, with Weiss you never know for certain. :wink:

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This is a brief bit of counsel regarding Interior Federal Credit Union:

If you have CD(s) maturing there in upcoming days I suggest you not wait until the very end to make arrangements for disposition of those funds.

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I have one maturing in a couple weeks. One month prior to the maturity date, Interior sent me a renewal notice. I secure messaged them I wanted the proceeds deposited into my savings account, and they acknowledged the CD is set up to do that. Is there a reason why I should be wary of this happening properly?

Not in my opinion. Sounds like you will be fine.

Course there is the matter of exactly when, at what time of day, the funds will transfer. If that’s not a concern you are in the tall alfalfa. :slightly_smiling_face:

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Thanks, I’ll join in. My Interior FCU CD matures 6/24. I will check in with them tomorrow.

I’ll ask about renewal, but pretty sure nothing will be of interest. So it’s Keesler’s HIMMA+ 1.40% for placement of funds.

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I envy your day of maturity very much, pattyb53. Mine is one day later and that has me concerned and working hard to, somehow, try to bail myself out.

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Why, because of the weekend? If it matures on Friday, wont the funds be put into your savings on Friday? You obviously have a concern you havent expressed here. Even if it takes the full weekend, the lost interest would only be $11 (per $100k), which doesnt seem like something worth losing sleep over.

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I am respectful of your view, glitch99, even though mine differs.

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Your view differs from my view that you have a concern you have not expressed? You are correct that the value of $11 is subjective, but I’m wondering about the timeline you think is going to cause issues. Especially since the maturity date is the maturity date, but you indicate you are still trying to get out of whatever the situation is - which implies you have found that the funds may not be available on the 25th?

My own CD matures on the 27th, which I assume means the funds will be deposited and ready for withdrawal on Monday - but you are making me wonder if you have information that indicates this is not correct?

I believe your thinking on this is correct, glitch99. Obviously I cannot be certain, and I also cannot tell you at what time of day your funds will become liquid and, therefore, available to you for withdrawal.

For example, would you be safe to issue an external ACH order on Friday, the 25th, which would be executed at IFCU early Monday morning? I dunno the answer to that.

Curiously I ran into a similar dilemma at PenFed a couple of weeks ago. I had a Sunday maturity. I was unable to find anyone at PenFed who would tell me when my funds would transfer to my savings, something I had prearranged. This cost me a day, because it turned out the funds actually did transfer on that Sunday. Such is life.

Is that your actual concern? There’s no reason to be cagey about it, and if you’d express it there may be someone with practical first-hand experience to share.

No, I was just trying to be of assistance to you. I’m not comfortable sharing my actual concern as it relates too closely to my personal business. I’m sure you understand.

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I dont really understand, since there’s no need for account numbers and counterparties - you can even make up a hypothetical context that produces the same issue. What happens to the funds on a CD maturity date isnt remotely personal, unless you had negotiated a unique CD with really unique terms with them.

I just got off the phone with nice agent of Interior FCU. When he pulled up my account he asked for my verbal code. I didn’t have one… He wouldn’t go on with my request until I had to go though 30 minutes of “request new forms”. Automatic Sign in, new code, picture ID. Unbelievable!!

He followed through with my request. I then asked, “will I see my funds in Savings 6/24 early” Yes, he said.

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I can offer a little more on IFCU, but first the usual caveat:

This is based on conversation with just a single representative. However, that representative was direct with IFCU and not merely a member of their 24/7 “overflow” crew. Overflow crew members are perhaps not the best choice to handle the sorts CD maturation matters under discussion here. But IFCU is so slammed with callers that oftentimes only an overflow crew member is available to take your call.

Once your CD is set up in advance to close on day of maturity, with funds moving into your IFCU savings, that movement of funds will happen at roughly 6:00 am ET on day of maturity. In addition:

They will allow, each month, a single exception to the $30,000 wire limit. You may apply for your single exception wire online with the customary form, but the system will ask you to upload a copy of the front (only) of your driver’s license. Thus:

Depending on the size of your CD account, if you are wanting to split your proceeds sending a portion to each of (for example) two financial institutions, you need to be very careful if both wires will exceed $30,000. This would violate IFCU wire rules.

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Since I’m sure you know - what does Interior charge to initiate a wire transfer? With my Aliiant closed, I’m still debating how to withdraw my CD proceeds that wont take over a week to get to the destination.