CD Discussion Thread

It kind of sucks having 2 rather large CDs maturing next month. This is a time where I’d be much happier knowing I was simply stuck with what I have. Right now, even a decent 1-year CD might be too long, yet liquid rates (beyond Rewards Checking Accounts) still arent offering much of an alternative.

Well you didn’t say when in the month. But the next upcoming Fed meeting is really early, next week, so presumably your maturities are likely to be thereafter. And then you can look forward to another half point boost in the Fed funds rate six weeks after next Wednesday, so middle of June. These Fed rate increases will put pressure on the financial institutions. But the latter will of course resist and hold off increasing their interest rates as long as they are able. Some will be better positioned to resist than others. So ya gotta shop.

I am seeing reports (depositaccounts.com) of 3+% interest rates available today on brokered five year CDs. But I do not know the EWP, if there even is one. Maybe it would just be a case of selling the CD, if forced, and taking your loss that way.

Anyway and regardless, it appears at this point that the longer you’re able to hold out the higher the interest rate you can hope for. I still have money in the three year Bellco Smart Move CD at 1.15% APY, though that is not “real” CD money. It is actually a sort of reserve fund, since it is (mostly) liquid. But they call it a CD. I’m hoping for a rate boost there soon. :slightly_smiling_face:

I’m thinking that many of us are in the same boat with those nice older CD’s that are maturing. I’ve managed to stay afloat with fairly decent Savings accounts.

When I say decent %rates, actually between. .70%~1.05%. I’m still trying to get SoFi 1.25%. Haven’t been able to work that out yet.

Anyone with something better? :blush:

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Per depositaccounts site-

As of 4/29/2022, Department of Commerce Federal Credit Union is now open to all U.S. citizens and residents aliens.

$500 min deposit. Deposits of $25k+ earn 10 bps more.

Easy membership requirement through membership in the American Consumer Council (ACC).

CDs –
6-11 month (1.35% APY)
12-23 month (2.12% APY)
24-35 month (2.80% APY)
36-47 month (2.97% APY)
48-59 month (2.99% APY)
60-84 month (3.03% APY)

edit to add-
DOCFCU’s Relationship Rewards program awards points for services and balance levels. The points add up to free benefits like higher yields on certificates, with Bronze Members receiving an additional 5 bps, Silver Members receiving an additional 10 bps, and Gold Members receiving an additional 25 bps. In addition to the Relationship Rewards levels, initial deposits of $25k or more receive an additional 10 bps.

The CDs (with the exception of the 6-11 month) are also available as IRA CDs (Traditional, Roth, CESA), earning the same APYs with the same deposit requirements.

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NASA Federal Credit Union CD specials (the 9-month CD currently offers the most competitive rate) -

9-month (1.60% APY)
15-month (1.85% APY)
49-month (2.35% APY)

**Minimum $10k deposit of new money.

Easy membership requirement.

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Yes, I also noticed these short term CD’s earlier today.

Since I belong to NASA FCU and I need placement for funds that so far are only drawing a measly .70+%. I may move some $$’s over.

USALLIANCE Financial has a new 1.25% APY 11-month No Penalty CD (currently the highest rate for any nationally available short-term no penalty CD).

The minimum opening deposit is $500. Easy membership requirement.

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Kansas State Bank has upped their one year CD to 1.8% and two year CD to 2.35%.

Online applications are available.

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Some good news indeed which I’m seeing for first time this morning:

Weiss Ratings has updated their credit union and bank ratings to reflect end of 2021 data. This update has come VERY late.

Some great news there for owners of the high yielding GTE Financial CDs. Weiss has upgraded their GTE rating to “B” from “B-”. A “B” rating from Weiss is quite a good rating.

Also, worth mentioning since it continues to give Ken trouble, Weiss is rating NFCU as among the strongest, perhaps the strongest, credit unions in the USA. I’m certain this comes as no shock to anyone here.

Bottom line, while I cannot account for Weiss’s long delay in making their update available, this is certainly an example of “better late than never”. :grinning:

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Just a very brief heads up for participants here. This is early notice but I hope better early than late.

Be aware that the twentieth of June is a National Holiday. If you are moving money or need access to your financial institution, it quite possibly could be closed that day.

If access to banking services on 20 June happens to be important to you, you would be wise to check in advance where things will stand for yourself personally.

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Huh? Don’t tell me the eagle has finally gotten a day off. What holiday is it? I searched, and found lots of possibilities (Ugly Dog Day, American Eagle Day, etc.), but none that seemed to indicated a national holiday.

Sorry. My post was an effort to focus on the banking impact. For example, I personally am impacted by this.

June twentieth is the day many financial institutions will be commemorating the Juneteenth National Holiday, which this year happens to fall on a Sunday.

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Not really competitive, but someone here might be interested nonetheless:

Ally is now offering a limited-time 20-month Select CD at 1.75% APY with no minimum deposit to open.

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Brokered CDs are looking good (compared to CDs anyway) at 2.05% for 12-mo, 2.45% for 18-mo, 2.85% for 24-mo (others available too).

I wouldn’t rush into them though with the FED hikes looming. The best savings accounts will probably be paying 2% by July, so these CDs might be even better then.

FYI, not really competitive, but Ally just bumped their 11-month No Penalty CD up to 0.70% APY.

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Also, to update my post from three days ago, Ally just bumped their limited-time 20-month Select CD to 2.00% APY with no minimum deposit to open.

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Dept. of Commerce FCU lists a 12 month CD at 2.15%. Easy to join (American Consumer Council membership qualifies).

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Again, not very competitive, but Ally Bank has a 9-month High Yield CD at 1.00% APY and a 14-month CD at 1.50% APY, no minimum balance.

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Connexus Credit Union CDs:

12-month CD (2.26% APY)
24-month CD (2.86% APY)
36-month CD (3.01% APY)
48-month CD (3.11% APY)
60-month CD (3.21% APY)

$5k minimum deposit, easy membership requirement.

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Excellent post, turtlebug. Thank you. That five year APY is an eye opener!

The problem we have now, as I see things, is related to term. If we select too long a term for our new CD, and/or if the early withdrawal penalty (EWP) is too draconian, we will not have “dry powder” available to invest when interest rates hit their peak. And that is exactly when it is best to invest . . . at the peak and before interest rates once again inevitably decline. I wish I could tell you when that peak will occur but . . . . I do not know.

I do believe peak interest will happen within fewer than five years. But that is only my opinion and you will decide this on your own and for yourself.

In the much shorter term, say within 2022, higher interest rates appear likely in light of Fed Chairman Powell’s inflation fighting promises. We shall see.