Any updates on funding online as a purchase with a citibank double cash?? I only know of gte financial cu. Their cd rates have plummeted. Min length 6mo 3%, 12 mo 4% …was 5.12 but I delayed & missed it
I have had this bank [Western Alliance Bank High-Yield Savings Premier Review: 5.31% APY1 (Nationwide) (bankdealguy.com)(Western Alliance Bank High-Yield Savings Premier Review: 5.31% APY1 (Nationwide)) ( I live in upstate NY,) I think they are in AZ. for 6 months. Still 5.31% interest rate. They have been fine by me. very stripped-down web site. (don’t care) They only allow 1 bank in your acct for xfers in or out, they hold inbound xfers for about 5 biz days, but you get the interest from the day they receive it.
2 Likes
sorry, this Western Alliance is NOT a CD
2 Likes
Turtlebug,
VUSXX is still showing 5.29% which is great.
Just lock in a 30 months special with NWFCU for 4.6%. Thought I lock in a few longer terms just in case the rate plummet.
2 Likes
Sf Fire CU has a 10 month promo CD at 5%. $250 minimum.
2 Likes
It’s worth noting that SF Fire CU is not federally insured by NCUA.
Deposits in SF Fire Credit Union are insured by American Share Insurance, the largest provider of private share insurance. Each SF Fire Credit Union deposit and certificate account is insured up to $250,000. This institution is not federally insured. The credit union is not insured by any state government.
5 Likes
Good point. Depending on the health of the insurer, it may be wise to adjust the risk-adjusted returns (just like for bonds or MYGA annuities say).
2 Likes
Heck of catch! I suspect many people presume that CUs are all covered by the NCUA.
1 Like
"American Share Insurance (ASI) is a private share (deposit) insurer owned by the credit unions it insures. Currently, ASI protects the accounts of over 1.35 million credit union members, and no credit union union member has ever lost money in any ASI-insured account in over its 50-year history."
Their only business is to insure credit unions. Their assets are held in cash and bonds, not speculative investments.
“ASI’s insured credit unions generally have little or no investments in mortgage-backed securities, nor do credit unions buy the types of exotic investments that have been associated with the failures of some of the nation’s largest investment firms, banks, and thrifts during recent years. ASI’s insured credit unions hold little or no sub-prime mortgages, as confirmed by our numerous on-site field examinations.”
“ASI’s equity ratio is greater than that reported by federal deposit insurance funds.”
.
6 Likes
Thanks for finding that out!
Only potential concern for me would be the scale. ASI’s size is quite small since it only covers just shy of 1% of the number of customers covered by NCUA. So even with good equity ratio, a randomly abnormal number of CU failures could stretch their resources. And they’re not government-backed unlike FDIC or NCUA who can borrow from the Treasury as needed (like in 2008).
2 Likes
They don’t cover as many credit unions, so I don’t see smallness as an issue, especially since they insure higher quality credit unions which have limited dealings with speculative investments. Since they have covered everything over 50 years, it seems likely they’ll be able to do so in the future. “ASI’s equity ratio is greater than that reported by federal deposit insurance funds.”
Is anyone still doing CDs? Pretty quiet here.
Has anyone hear of Bank of Lake Mills - 7 mths CD 5.35%
And Twin River Bank - 6 mths 5.35%
2 Likes
I’m looking more at CDs now that short term treasuries are falling. Most of my treasury income is going into ~18 month terms. I’m unfamiliar with the two that you mentioned. Several of my most recent treasury non-renewals have gone to First Security in Iowa at ~ 5.4 and dropping to 5.3 APR.
Depending on your anticipated term, you may also want to look at annuities.
1 Like
Same here. With Treasuries rate falling, I am also looking into CDs now. I am looking at 2 and 3 years. Not familiar with annuities.
This is as decent an explanation as most. The bottom line is that you’re trusting an insurance company to remain solvent for the length of your annuity. For that risk, you get a slightly higher interest rate. The longest term annuity that I’ve ever purchased is 5 years, but most have been 3 years.
3 Likes
Thanks for the link! Will check it out.
Cds rate are tumbling. T-bills rates are still not bad.
1 Like