CD Discussion Thread

shinobi · July 9, 2019, 12:36pm

Not a big deal, famewolf. But achieving a 3.5% APY, or more, with an add-on CD is a terrific outcome at this time. Congrats! You went the GTE deal I posted up thread one better!

Regarding GTE Financial I have a good, and extensive, working relationship with them because of my early hustle activity. I was all over their six month CDs until I found better opportunities (ceased buying their six month CDs many months ago). I think GTE is a good organization. The reps are easy to work with and really take care of their members. If I had a hundred grand (I do not) I would take famewolf’s deal in a heartbeat.

famewolf · July 9, 2019, 2:53pm

I think I was wrong on that apy and it’s 3.56% from the calculator here: APY to APR Calculator | Convert Annual Percentage Yield to Annual Percentage Rate

Thanks shinobi. I’ve found as long as you can stay calm and polite (bring a cat and pet it…I did…also an ebook to read ) even with long holds most times folks will work with you as best they can.

famewolf · July 9, 2019, 2:58pm

My initial 5K credit card funding showed up promptly. Have you checked to see if the problem is on your credit card side? If a 5K purchase is outside your shopping pattern they might have it on hold to do an investigation to ensure it’s not fraud…it’s annoying but on the other hand you want them to catch fraud…and by they/them I mean your credit card…not the bank.

Keep in mind you are dealing with a small bank out of florida. I imagine their pretty slammed right now.

famewolf · July 9, 2019, 6:55pm

Anyone know if there is an official “buyer’s remorse” period for a cd that you can cancel it? I just want to know for future knowledge.

Shandril · July 9, 2019, 8:53pm

I don’t think there is or at least I’ve not seen language allowing a rescission or examination period like you see on loans or on insurance policies. But worst case scenario, closing the account right away would be treated as early termination so you’d only lose a few days of interest.

My own data point for GTE was also mixed. They totally failed to contact me after my application (was supposed to be 24 hours). I had uploaded the documentation required and it did not speed things up at all. Maybe the contrary. After 2 days, I did a live chat, the rep forwarded my request and I got my accounts setup within 2 hours of that live chat. After that, my credit card deposit took a couple more days to show up but nothing too unexpected.

famewolf · July 9, 2019, 9:00pm

I included a scan of my drivers license and was never contacted until 2 emails back to back…one showing the cd was opened (the $500 one for 3%) and then a welcome email as the 2nd. I think it did take a day or two but not any longer.

Shandril · July 9, 2019, 9:05pm

Maybe I could have waited but I’m not patient. When I’m told I’ll be contacted within 24 hours, I stop waiting around the 25 hr or so … Bottom line, a little nudge (chat or call) seems to be able to speed up the process.

famewolf · July 9, 2019, 9:18pm

Well I have to admit I’m very excited about the gte jumbo because if rates tank I can “pull a shinobi”. What’s that you ask? That’s when you dump all your funds in one cd WAY over the FDIC limit because you want that higher interest rate. He’s the one who first demonstrated that trick here.

shinobi · July 9, 2019, 9:34pm

Wow, famewolf, you have quite a memory. I do not recall mentioning that here on FD. But I could easily have written about it back on FW.

Yes, I did do that following the 2008 crash. The target back then was NWFCU, where I had a high-rate add-on CD. That CD had a ridiculous amount of money in it at maturity . . . . far, far too much. But with rates having tanked in the wake of the crash it was, for me, “the only (sensible) game in town”.

famewolf · July 9, 2019, 9:47pm

I think you did it again between 2016 and now cause I’m not sure I would have remembered back to 2008 nor was I tracking cd’s so closely. It’s a good trick provided you trust the bank you are doing it with…I have to admit I’d prefer more of a big name than GTE for doing that sort of thing but will see how it goes. You should have a banner: Shinobi, helping people save money since xxxx

famewolf · July 10, 2019, 4:22am

When searching for financial/cd deals 3 of my Holy Grail sites are:

Does anyone have any additional sites to recommend? I use ifttt.com to have their rss feed forwarded to my email when a new article appears. Has been very useful.

Badlands · July 10, 2019, 8:24am

No; the $5000 charge went through and posted the next day. The smaller charges into the 3 and 4 year CDs actually did raise a flag and I had to confirm those charges.

StatGren · July 10, 2019, 12:28pm

shinobi · July 10, 2019, 1:26pm

Oh, snap. This stinks. Appears as if Powell has spilled the beans and pre-announced his now seemingly inevitable announcement at month’s end.

Powell folds like cheap suit in wake of Trump jawboning

This will commence costing me money on September 1, 2019. That is when the interest rate on my Bellco Index Advantage CD will descend. It will be the first time my CD rate actually goes down. Up until now I have had nothing but rate increases.

Hey, Trump: Yer costin’ me money here!!

Course when you buy index CDs you have to be willing to take the good with the bad.

Up until now: all good . . great actually.

Going forward to maturity: I dunno.

ETA

By way of further explanation and elaboration:

The Bellco Index Advantage CD, which was offered back in spring of 2017 and is no longer available, is indexed to the Federal funds rate (FFR). The CD interest rate is reset first of every month depending on the FFR on the prior 26th of the month.

Lucky for me the Fed does not meet until the very end of July, so old Powell will not change the FFR until after the 26th of July. But on the 26th of August the new rate will be in effect, in time to get me when the CD interest rate again resets on September first.

Honkinggoose · July 14, 2019, 6:05am

Congratulations! You are the perfect Lifetime Products customer.

Honkinggoose · July 14, 2019, 6:16am

This _may_be the case at GTE, but it is NOT the case at Ally. I am talking about their High Yield CD, and not the no-penalty CD. From their website (emphasis by me):

The penalty amount is calculated at the interest rate in effect for the CD, and is equal to the interest accrued during the time period specified in the penalty schedule. If the accrued interest is less than the penalty amount, the difference will be deducted from the CD’s balance.

shinobi · July 15, 2019, 10:57am

They’re baaaaaak!!

Keesler, famous for their 5% deal not long ago, is back in the fray:

21 Month Step Share Certificate - $1,000 minimum
First 7 Months APR: 1.5%
Second 7 Months APR* 2.5%
Final 7 Months APR* 3.5%
Blended APY 2.54%

30 Month Step Share Certificate - $1,000 minimum
First 10 Months APR: 2.0%
Second 10 Months APR* 3.0%
Final 10 Months APR* 4.0%
Blended APY 3.1%

21 Month Jumbo Step Share Certificate - $100,000 minimum
First 7 Months APR: 1.6%
Second 7 Months APR* 2.6%
Final 7 Months APR* 3.6%
Blended APY 2.65%

30 Month Jumbo Step Share Certificate - $100,000 minimum
First 10 Months APR: 2.1%
Second 10 Months APR* 3.1%
Final 10 Months APR* 4.1%
Blended APY 3.21%

You can find their current rate table here:

Keesler rate table - Welcome back to Mississippi!!

Still more information is here

pattyb53 · July 15, 2019, 2:35pm

Thanks shinobi… Finally happy to see you are also back in the fray.

This 30 mo CD 3.21% is not to bad. But first, you must have $100K & second you must stay for the long run. No bowing out early.

Shandril · July 15, 2019, 5:50pm

Yikes. I haven’t had a CD with this bad an early withdrawal penalty but in that case, you’d definitely not want to close it early.

shinobi · July 17, 2019, 1:10pm

This post is for FD participants only. Please do not post what I’m sharing here over on Ken’s site. Thanks.

This is an uncertain thing anyway, but CD deals are not that easy now so I’m posting what I can. If this is too convoluted for you, I understand. Please be aware others might have a differing view and simply move on if you do not like this.

We start with Ken’s post this morning regarding Empower:

Ken’s Empower post

You can read that for yourself and some of you probably already have seen it. Personally I do not see a lot of juice in what Ken posted, but that is only MHO.

Q: OK, Shin. Where’s the juice?

There are two things you need to consider. First, Empower is well known for their Christmas time “givebacks”. Each Christmas season they offer members a bonus based on the amount of business done with Empower the previous year. Christmas of 2018 they returned four million bucks to members. Expressed as a percentage that is between ten and fifteen percent. So . . .

Q: Shin, how do you know that? What is your basis for making that claim?

I have been an Empower member for many years. The last two years the giveback has been toward the higher end of that range . . above 15% actually.

Q: But is the giveback guaranteed?

It is not. If Empower has a poor year the amount of the giveback declines. But they have paid a giveback at Christmas for every year at least since 2012. And the term of these CDs is relatively short (see Ken’s post). So it’s a good bet the giveback will hold in the short run.
Obviously you must decide for yourself whether or not you want to run the risk of the giveback disappearing.

Q: Anything else?

The other item missing from Ken’s post, or maybe not, is that anyone can join Empower (or maybe not). If you look here you will find the reference:

See the fifth item down on their list

I know about that because that is how I myself joined Empower. I do not live in their service territory.

Q: What’s with all this “maybe not” stuff?

I joined many years ago. I telephoned Empower this morning to learn if the rules regarding CNYPCUG had changed. I was told the rules have not changed. That is really all I can do. The "maybe not’ part comes because there is always the possibility I was given bad information. But I have done what I could do.

Let’s face reality. There is an NFCU CD deal out there right now known to all, with no hassles whatsoever, paying 3.5% APY. And this Empower deal pays less, even with the giveback bonus! So your only reason for being interested in this deal is if you have preference for an eighteen month CD over a five year CD. Opinions on the merits of investing shorter will vary all over the place. Some people will want to do a split, putting a portion of their money shorter and other of their funds out the five years. I understand. Enjoy!

ETA

Just offering here a clarification on the giveback bonus, since I did not state this as overtly as I should have. By way of example:

If your nominal APY is 2.5%, and the Christmas time giveback bonus is 10%, then your effective APY for that year becomes 2.5% plus 0.25%, which equals 2.75%. You can do the math yourself for each of the several tiers Ken mentions in his post.

In 2018 my giveback bonus percentage was 15.4%. In 2017 my giveback bonus percentage was 16.8%. In 2016 my giveback bonus percentage was 16.22%. But back in 2015 my giveback bonus percentage was only 10.22%.

So you can see the giveback bonus number varies widely and, once again, it is not guaranteed.