I havent seen a bid this high, but one of my holdings pages has this 4.9% CD marked with a last trade of 104.50.
New 5-yr non-callable brokered CDs are now at 3.75%. I think even at 104.5, the yield is higher than that, probably 3.9%, so it is still good compared to new brokered CDs for the buyer.
As a comparison, 5 year treasuries, more liquid and tax breaks, are 3.85% currently.
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Treasuries are certainly better than brokered CDs. But i think the deal is in shopping for direct CDs now.
Mountain America Credit Union (MACU) has a 12-month CD at 5.25% APY with $500 minimum deposit and no stated balance cap. Easy membership requirement w/ACC membership. New members – call 1-800-748-4302 to open an account (or visit their nearest branch). A minimum $1 deposit in a Primary Savings account establishes a MACU membership.
They also offer a 12-month Growth CD at 5.25% APY with $5 minimum deposit up to a maximum of 100K. Additional funds may be added any time up to the 100K cap. Minimum $10 automatic monthly deposit requirement.
MACU also offers a 12-month Youth CD at 5.35% APY with a $5 minimum deposit and a stated balance cap of 100K. Additional deposits of up to 10K can be made annually up to age 27 (but not more than the stated balance cap).
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If it’s a 12-month CD, how can you make additional deposits annually?
Edit: I see they also offer 24-60 month terms as well, albeit at a significantly lower rate.
It’s just standard language for all of their Youth CDs, to include the 12mo CD.
Glitch99 mentioned upthread how he closed a CD from GTE and rolled it into a new CD without penalty. I was going to attempt the same thing, but then I read on Deposit Accounts that there was a possible way to close a CD without opening a new one and not incur the EWP.
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Call or chat (I used chat; those who called suggested extension 40453) and ask for all accrued and current interest to be transferred to your share account (apparently this option is in the original disclosure for these CDs).
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Ask what the balance would be if you cashed out the CD. It should be the full amount. If it is, cash it out!
This worked perfectly for me. Apparently, the reason it works is because the EWP comes from the interest.
Note that you can probably do both steps on the same chat/call, but I waited two days until after I had transferred the interest out (just to be extra cautious). Surprisingly, when I asked for the balance for cashing out, it was more than $100 greater than the balance shown. I thought maybe they hadn’t transferred the current interest out originally, but the amount was a bit more that that would have been (and I would have thought any interest left would go toward an EWP).
So that was my 5 year CD. I still have a 4 year CD that I pulled all the interest from. It’s only got 4 months left and is a smaller amount, so I may just let it ride.
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To be clear, my rolling it into a new CD had nothing to do with my penalty-free withdrawal. I redeemed the existing CD, then opened a new one - you essentially did what I did, only I chose to keep the money at GTE. Expecting a penalty, I also first withdrew the accumulated interest so that the fee wouldnt be charged on that portion.
When closing the CD, they also pay out interest accrued to date; in my case, the manager credited the ~$600 accrued interest to the CD then redeemed the whole balance to my savings account. That’s what your extra $100 was - when you asked before, they only pay out the accumulated interest, not the interest that has accrued but not been posted. I’m pretty sure the EWP simply doesnt apply to jumbo CDs, or (if yours wasnt a jumbo) they’re discretely waiving it for the time being. It has nothing to do with the presence, or lack of, accumulated interest.
Regardless, yes, if expecting no fee, you should ask what the fee will be (or the balance being deposited) before telling them to do it. What happens today may not be what happens tomorrow.
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A couple new-issue brokered 5-yr CDs have appeared with a coupon as high as 4.2%.
The premiums on CDs are also evaporating. On my 4.9% CD, bids that were around 104 a week ago are now barely topping 102. As I expected I would, I’m regretting not accepting that 103.9 bid last week. That same CD is available to purchase today for 103.3.
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Interestingly, I can see the 4.2% non-callable new issue 5-yr brokered CD (from Blue Ridge Bank) only on E*Trade. The best that Fidelity offers are only the 4.0% ones.
I suspect Fidelity, being the much bigger/popular broker, has already exhausted the 4.2% offering for now.
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TD Ameritrade for me. They show an inventory of over 14,700 available.
Fidelity shows two, three, and five year CDs all around 4.9%. I do not know other details, but it is easy enough to find out at their website
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You need to drill deeper. Those with 4.9% rates are callable CDs.
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Ally 11mo no-penalty CDs are now at 4.00% APY.
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For anyone interested, Ally now has an 18-month CD at 5.00% APY.
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5 year brokered CDs have cleared 4.4%. Huge jump over 2 weeks ago.
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6%, 11 month special at SecurityPlus. Seems like you have to call to get it. Membership is available through the ACC:
https://www.depositaccounts.com/banks/securityplus-federal-credit-union/offers/
$50k max.
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I see 4.5% 5-yr brokered non-callable CDs today. Still not competitive enough compared to the best direct CDs.
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Update: NFCU 15mo add-on Special CD at 5.00% APY offer will now expire March 5th (originally supposed to expire 4/30). If you’re interested in this CD and qualify for same, I would suggest you open it asap. $50 min/$250K max deposit, limit one per member, additional deposits at any time.
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