We have to keep in mind the GTE promise will not dematerialize in the near term, if ever. I am in goldendog’s situation, too. I’ll be doing nothing to jeopardize GTE any time soon. It’s because I do not have the money.
But later, in 2020 and especially (for me) in 2021, will come the deluge. Can GTE survive a tsunami of new money, pay us 3.3% APY on that money in a very low interest rate environment, and avoid turning turtle?
This, and so much else, will be revealed only in the fullness of time.
This cut in Europe brought a quick response from President Trump. In a tweet this morning he is seizing upon the situation to once again jawbone the Fed. Here is the text of Trump’s tweet:
European Central Bank, acting quickly, Cuts Rates 10 Basis Points. They are trying, and succeeding, in depreciating the Euro against the VERY strong Dollar, hurting U.S. exports… And the Fed sits, and sits, and sits. They get paid to borrow money, while we are paying interest!
Trump clearly would welcome a half point rate reduction next Wednesday following the FOMC meeting. If that happens, contrary to current expectations, I will have to reevaluate things bigly.
Residents of the cities of Casper and Cheyenne, and Natrona County, Wyoming; possible easy membership requirement.
Western Vista’s Membership page indicates there is an easy membership requirement. CSR confirmed any U.S. citizen or resident alien, regardless of residency status, is eligible to join by making a $5 contribution to the Community Foundation.
Western Vista does not have any kind of online application. If you don’t live near any of the three Wyoming branches (Cheyenne and Casper), you can request a membership application be sent via email. According to CSR, all out-of-area transactions (including opening a CD) can be done by email, but all official documents must be notarized.
To your point, for GTE I think the 3.% CD is likely more of an issue than the 3.3% one. First there is probably a lot fewer 3.3% CDs due to the entry barrier. But also those 3.3% CD have relatively lower range until they are no longer NCUA protected. Also people who pooled their money to do the 3.3% CDs may not have that much ammo left. And at most people can only addon 150k to these 3.3% CDs.
While the 3% CDs could see influx up to $250k extra (to stay within NCUA limits). And people who only put $500 down to get them could well be sitting on much larger amounts of money.
But I agree that prevalent rates are not yet low enough to see a massive influx materialize but it could start in a hurry if Feds cut by 500 bps.
I know many of us have opened 3% or higher CD’s to lock in high rates given the climate of falling interest rates and uncertainty about what’s coming. I think that leaves many of us with low amount of liquid funds currently however some of us will have CD’s maturing in the next few years. I have been looking for options to try to lock in higher rates now and noticed that MACU offers Growth Certificates that only require a very low $5 minimum deposit and allow you to add up to 100k over the course of the term. The 60 month certificate pays 2.5%. They also require $10 be added monthly which is a minor annoyance. Anyone is able to join who is a member of the American Consumer Council. I think many here, like myself, are already members of ACC from other credit unions. I’m opening to have an option of somewhere to put up to 100k when future CD’s mature. 2.5% isn’t great by recent standards but may be pretty good in the coming years. Also if you never have to use it, it only ties up a small amount of money - $605 by the end of a 60 month term and of course you are being paid 2.5% on that money. I’m looking at it as a form of insurance with a negligible cost(at most).
Just one addition to your excellent writeup…MACU allows a max of 100K across ALL it’s growth certificates so if you sign up for 2 of their promo’s even at widely apart times that’s something to keep in mind.
“These rates are valid from Monday, September 16, 2019 to Sunday, September 22, 2019. A minimum balance of $500 is required to open a certificate account.”
Hi Scanchain,
Is this good nationwide or just good for Pen residents? Ken’s side seems to have people having issue getting membership without Pen residency.
It is good nationwide. I have the CD and I’m not a PA resident. You just need to sign up for PRPS membership during the application process. The PRPS membership fee is $20 but PSECU will pay for $10.
Just a brief reminder for those with a longer time horizon who are able to take early withdrawal off the table (as a practical matter):
Keesler’s weird back end deal remains available. It’s weird because they do not pay the preponderance of your interest until the end. You can close early . . . but it’ll cost you.
However the blended rate for these CDs can go as high as 3.21% APY (30 month jumbo), so might be worth a gander for certain individuals in certain special situations. Here is your link:
It is wrong to be expansive and even boastful when things are going your way, and then later to remain silent when it all goes south. Such is my situation now:
I’m getting my butt kicked. My once tall and luxuriant alfalfa, which I was always eager to point to here and back on FW, is all but burned to a crisp, gone with the wind, wiped out.
Yes, reference here is to my Bellco Index Advantage CD. Commencing with purchase back in 2017 its APY did nothing but rise, as the Fed raised rates relentlessly. Those were surely the halcyon days of my CD’s existence. And boy was I happy and making money. Life was great!
That was then. This is now. It’s an indexed CD. When the Fed raises rates my APY goes up. But when the Fed cuts rates . . well . . you know. My APY will fall another quarter point on October first.
Q: Shin, Trump wants interest rates to fall to zero. If rates go to zero does your CD’s APY also achieve goose egg status?
No. Gratefully. There is a floor down somewhere around 2.4% I think it is. The APY cannot fall below that.
But it certainly is a different ownership experience with rates now falling than it was earlier when they were rising.
Oh, well. I guess you have to take the good with the bad. Live and learn. And there is no chest thumping or boasting now.
I’m guessing the new rate is still more than, or at least comparable to, a standard fixed rate CD you could’ve gotten back in 2017? Just because rates are now dropping doesnt turn that purchase into a mistake. With a floor around 2.4%, I’m thinking you’re still going to come out ahead over the full term.
If nothing else, that’s a good example of the risks of indexed CDs and the importance of paying attention to the floor rate on those. 2.4% may not be that bad considering the direction the rates are going.
I remember so well. I almost tried to get in to Bellco, but at the time it was to much work . As we so often have said “only time will tell”.
So now shinobi, I have a large CD maturing at the end of the month. Thinking & wishing for a good suggestion from you of where to go with these funds. I can keep the money in Grow for a few months & watch the rates go farther down. But what would you do with a “windfall”?
End of the month is still 11 days away. There’s really no reason to suggest anything now, because it’ll likely be invalid by then anyways. If you cant catch things now before there’s further reaction to yesterday’s rate cut, you need to wait to see the reactions before determining what’s best.
