I agree. Although I suspect it’ll be a while before we see rates decrease. So for that Connexus offer, my first reaction is that the higher rate is worth going for the 2-year instead of the 1-year, but the incremental gain for going longer than 2 years is questionable at best.
1 Like
I’m interested in that Connexus 2yr cd (almost 3%). I’ve been placing my liquid funds in Bask Bank 1.25% for the past months. I like Bask Bank with the one exception that they place your funds on hold for (seems like 2 weeks) before available.
Connexus Credit Union has been around for sometime and I’m a member. So must make up my mind about that CD pretty soon.
I like glitch 99 comments today, makes sense. 
You mean for the past two weeks.
With inflation running about 7% or higher right now, you think interest rates are going to stay around 3% for the next two years. I doubt it. I know it’s hard but I wouldn’t be deploying your cash just yet. Keep it in the highest rate liquid account for now. Whether the Fed knows it or not, they are going to have push rates up much higher than they think to slow down this inflation. It’s now totally embedded in the economy.
1 Like
Caught off guard again…
Yesterday I checked out my Connexus account. I have $$’s at this point in their MM 1.11%. When talking to an agent about placement of those funds into that 2yr CD, she said that they were being swamped with calls. She said that I should call back today and they would be happy to help me.
So after reading goldendog’s post I’m at a tiff as to whether I should just leave those funds in the MM account drawing 1.11%.
Decisions Decisions…. 
scripta…are you applying for the disinformation board?
That CD is paying 2.5x what you’re earning now. That’s a lot of wiggle room, should the rate end up being low on the back half of the CD term.
2 Likes
Rates probably will be a few hundred basis points higher in a just a few months. It’s going to happen far more quickly than you think. Don’t panic.
2 Likes
Penfed has a cd paying 2.75% for 3 years. Need a thousand to buy. Ends 5/31.
5 Likes
USALLIANCE Financial Certificate Specials –
24-month (3.00% APY)
36-month (3.25% APY)
$500 minimum deposit. Easy membership requirement.
5 Likes
Thanks turtlebug.
Looks like the predictions of CD %rates upward movement is taking hold. I have $$’s in USALLIANCE Financial High Yield Savings paying out 1%.
So wondering now whether I should leave those funds in a liquid account. Their 2yr CD 3% looks good but last week the 2.68% was tempting enough that I went for it.
Even leaving those funds in USALLIANCE at 1% when I can get 1.25% at Bask involves moving money. So we have this 3day holiday again and can’t make changes until Tuesday. Time to make up my mind🤔
Like I said earlier, if you wait for the “best” rate, you’re money will be sitting in that 1% savings account for most of that 2-year term. You gotta jump at some point, and just remember that you’re making more now, even though you may be below what you could be earning towards the end of the term.
2 Likes
In 2 months all the best rates will probably be 1% higher than today. If you go from 1% savings to 2% CD, whatever you’re making more for the next month or two is gonna break even two months after that and then be a loser. If you go to 3% CD it’ll take a little longer, but probably still a loser compared to waiting a bit longer.
2 Likes
…and at that point you’ll want to wait another two months because the best rates may be even higher. My point is that there’s no endpoint to the waiting, at some point you need to just jump.
And, perhaps even more importantly, the longer you wait, the further out the maturity date will be - potentially causing you to miss out on securing the next CD before rates begin to fall… I wouldn’t lock in a 5- or 7-year CD now, but there’s a good chance that two years from now will be a great time to be looking at longer-term maturities - yet you won’t have funds available if you waited to long to open a two-year CD now.
I’m not saying it’s the same, but it is comparable to the I bond situation. Buying I bonds last October got you a 3.5% rate, even though 7% was just around the corner had you waited a month. But on the back end of the bond, you will now still be getting a high rate for 6 months after the rate crashes. Whereas had you waited that month, when the rate finally crashes what you earn would crash right along with it.
2 Likes
3% for 2yr CD today has good possibilities, IMO.
Last week I was ready to go for that 2yr CD 2.86%, & I did. At this point I’m leaving liquid funds hanging at 1.25%. Who knows how fast or slow financial changes are happening? I’m happy to go with these 3% ur’s.
When checking out my USALLIANCE account I have an 18 mo cd 1.49% that will mature 8/23. I wonder why I bothered?
1 Like
I didn’t say we have to wait forever. Just wait until the FED slows down the rate increases (or the market predictions for the FED’s actions indicate a slowdown). Or at the very least, the difference between the longer-term rates is actually worth more than the potential increases in the short term rate. Right now nothing is worth more (except I-Bonds), because everything will be 1% higher in 2 months.
I could say the same thing – if you lock into 2 years too early and the peak rates are reached in 12 months, you won’t have the funds available because you jumped in too soon.
Huh? There’s nothing similar between 2+yr fixed rate CDs at 2-3% and 11-months+ 8%+ floating rate I-Bonds.
1 Like
100% agree with scripta. It won’t be difficult to know when the Fed decides to stop increasing rates. They will signal their intentions before they do it.
1 Like
Of course. And when that happens 18 months from now, you’ll have let your cash sit around earning 1% all that time, instead of being ready to renew your CD after having earned 3% over that same period. That’s the whole (and sole) point - there’s as much risk of jumping in late as there is of jumping in early. The reasons to wait patiently can remain indefinitely, while the opportunity cost of your ongoing inaction compounds daily.
And I didnt say you need to lock things up immediately. Just that the reasons for waiting could in fact remain a factor ‘forever’ (not literally, but for a really long time), waiting for that to change could leave a lot earnings potential on the table in the meantime. There are two sides to this equation, and “wait for better rates!” is only considering one of those sides.
1 Like
I never said I was going to wait 18 months. I think most of the upward move in rates will happen in the next 6 months. I will be in a much better position in the next 3 to 6 months to commit money to longer term CDs.
1 Like
…