My only firm feeling is to not get baited by a near-5% rate for only a 12 or 15 month term. A little lower rate for a much longer term will likely prove to be the correct answer.
Like the blog article scanchain posted, long term rates may have already peaked this cycle and wont touch 5% again. Waiting for it may put us in the metaphorical position of having to catch a falling knife.
You can open the CD once the funds are in your Alliant savings or checking account. It’s an easy process and it’s all done online, including selecting which account to take the funds from, whether you want to distribute the interest every month and which account to credit on maturity.
Remember to select a maturity date that is on a business day.
Also apparently Alliant is running a promotion now. See the Alliant thread
I decided to go halves (more like 70/30), and pay the penalty to move most of my balance to NASA for one of their 49-month 4.75% APY offers.
Turns out there was no EWP, she didnt know why but I wasnt complaining. Tried to withdraw the rest at no fee as well, but the system balked at two large withdrawals so thats still a work in progress. Its an add-on CD, so my hypothesis is the add-on amounts are being treated like interest earnings, and the EWP only applies to the opening balance.
Also turns out that, on the GTE Financial page where it promotes their 4.54% offer, if you scroll down a bit they also have 60-month Jumbo CDs at 4.8%.
Needless to say, this Rep made me happy today - no penalty, and a slightly higher rate without the hassle of transfering funds to another bank. And while I almost missed it, props to GTE for promoting a rate thats most accessible to people (with a sub-$100k requirement) instead of headlining their best rate that many wont qualify for.
I am currently not a GTE member but it looks like a nice credit union to have. Its inactivity fee gave me pause though. E.g. it states an Inactive Member fee of $15 a month. Has that been an issue for you if you just have a long term CD and you don’t touch the account at all?
An account from which you have not made a withdrawal, deposit, or transfer within the past 6 months may be classified inactive, and dormant after 24 months. Inactive/dormant accounts may be charged the Inactive/Dormant Member Account fee as set forth in the Schedule of Current Charges.
I’m not sure the above can be applied to non-addon CDs.
I dont know if CD interest would count as activity. But the fee generally applies to “the membership”, not each individual account. So your base savings account (which is required) or other account (if you have any) would still need to have that activity every 6 months. But it’s easy to automate - transfer $20 in every 6 months, and transfer $20 out 3 months after each deposit. I have a couple lingering memberships following old CDs maturing, where I do exactly that, just in case they have a new offer sometime.
My hypothesis was wrong. I was able to close the CD entirely with no penalty, despite having been told by multiple email reps that there was a fee and there was no way to waive it. I did have to speak with a manager to close it, but it was a quick and painless process.
So if you have one of those GTE 3.3% add-on CDs from 3.5 years ago, there’s a good chance you can get out of it clean. Roll it into one of GTE’s 4.8% offers, and you get nearly a 50% bump over what you would’ve received plus extend the timeframe out for a new 60 month term.
Last fall I had purchased a couple brokered CDs paying 4.35% and 4.5%. Today I was able to sell them each for a 1%+ premium (plus accrued interest), and push the money to GTE towards buying another of their 4.8% jumbo CDs.
Netted a 2.5% return over a 4-month holding period, plus moved the money to a higher long term rate. Not bad, I feel rather accomplished the past couple days.