Here’s a post from Kaight (aka Shinobi) over on Deposit Accounts. His title is super misleading, but it’s a good deal if you can get the extra 2% from your credit card. I opened up a $5K CD, funding it with my Citi Double Cash, and it counted it as a purchase.
To get this deal you must overcome two aspects you possibly might not like:
First, it’s a one year CD deal. That might not be the best term choice for you right now. This is a matter of personal opinion and preference.
Second, you will need to fund the CD with a credit card offering a 2% reward which does not treat the transaction as a cash advance and which does treat the transaction as a purchase. Such credit cards exist, I can promise you that.
Other aspects of deal:
The 2% portion of your return, which is in the form of a credit card reward, is unlikely to be taxed. The 5% APY CD itself may be opened for as little as $500 if you just want to experiment and “dip your toe into the water” to see how things go before making a larger commitment later.
Many people believe interest rates generally will be lower one year hence. Nevertheless, a 7% return on one year money is a respectable rate of interest.
Be prepared, credit card funding is available up to $5k when starting a new membership. Doesnt look to be available for adding new accounts after you’re a member.
And the CD was opened immediately online, once the wired funds showed in my account (within 2 hours of the sending bank calling to confirm the wire request).
One of their eligible “communities” listed is the greater Charlotte NC area. I have a NC license, which may make a difference.
Thanks. I saw that but I didn’t take advantage of it because I wasn’t sure if it codes as a cash advance.
Anyway, my application failed when uploading the joint account picture ID. So I just submitted an individual application, and I will then try to add the joint account holder if I’m approved.
Climate First Bank is offering a 5.34% APY 6-month CD Special (no penalty), $500 minimum and a 5.34% APY 15-month Flex CD Special (partial no penalty and add-on), $500 min; new money required. Nationwide through online application.
6-Month No-Penalty CD Special
$500 minimum opening deposit and minimum required balance.
New money only. “Deposits and investments not previously held by Climate First Bank.”
No withdrawals allowed within the first seven days after account opening, but unlimited withdrawals allowed any time after first 7 days.
15-Month Flex CD Special
$500 minimum opening deposit and minimum required balance.
New money only. “Deposits and investments not previously held by Climate First Bank.”
Additional deposits in increments of $100 up to one-half of the initial principal balance are allowed throughout the term.
One withdrawal of up to ½ of initial principal balance without penalty after the first seven days of account opening.
90 days interest penalty on withdrawals that exceed ½ of the initial principal balance and on any withdrawals after the first (penalty-free) withdrawal.
Del Norte Credit Union is offering a 13-month Share Certificate Specia at 5.65% APY with a $1k minimum deposit.
Del Norte Credit Union’s field of membership has expanded to include an easy membership requirement. U.S. citizens/residents aliens with a valid tax identification number who join the Del Norte LOV Foundation qualify for credit union membership. Joining is free (although they will gladly accept a donation) and can be done through the DNCU online membership application. There is the possibility that the nationwide availability could change if DNCU is inundated with out-of-state applications.
My application with Advancial FCU was approved. I tried to link to the account from Fidelity, but Fidelity gave me an error “ownership information doesn’t match your Fidelity account”. Anyone else has this issue?
I used the 8-digit member savings number for the link.
Ally 11mo No-Penalty CD decreased again from 4.50% APY to 4.35% APY (same rate as their Savings Account, which leads me to believe that that is about to decrease as well…)
Ally 12mo CD decreased again from 5.15% APY to 5.00% APY
(Ally 9mo CD is at 5.15% APY, in case anyone is interested)
So you open the gte 12mo cd at5%rate (5.12apy) & fund it with a 2% back cc.
I am guessing The only thing unique about gte is $5000 funding of the cd is allowed (from comments on https://www.depositaccounts.com/banks/gte-cu.html#promo56080 ).
Anyone know another bank/CU that allows $5000 or more cd funding?
Thanks. I wish Fidelity would do just that. For some reason, in addition to the ABA/Acc# combo, Fidelity wanted me to input in the userid/password combo as well, and there is no option to avoid it (short of sending in the ACH link by mail).
Just to verify, you used the 8-digit membership savings account as the account number?
My brokered CDs (bought with a ~5% YTM) are trading at a premium again, lowering their current YTM to around 4.5% (based on bid price). And they’re sub-4 year terms at this point. I plan to sell some Monday (pending the bid price I’m offered), and putting the funds into another 5.4% 5yr Advancial CD. Higher rate and longer maturity seems like a good idea.
I’m not buying that rate cuts are forthcoming, but I dont think further rate increases are in the cards, either.
I agree. Seems like inflation data has been mixed and I suspect the fed will be more likely to keep the status quo given we are in an election year. Maybe we see something post-election if the economy cools, but I doubt anything changes until then.
Locking something in now feels like the smart move. I don’t have anything in CDs right now; all my cash is in FZDXX which will drop the minute there’s a whiff of a rate cut. I think I’ll dig through all the obscure credit unions and their CD offers to hedge risk a bit.
Schwab’s CD sale function seems a lot less fluid than when I last sold a CD on TD Ameritrade’s system. But I was able to cash out all but one (a 2-year that still has a 4.9% YTM) at prices indicating a 4.4-4.55% YTM. My net return on these CDs were 6-7% APY, with one at 11% APY.
Now hoping Advancial doesnt change their rates this week, so I can get these trades settled and the cash transfered into a new 5.4% CD.
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