Additional information released - new rate range is 0% to 0.25%.
Good Lord, between the Fed and the corona virus things have really become unhinged.
How are we savers supposed to deal with rates that low?
I am nonplussed.
And I am shaken and uncomfortable. I have no experience to deal with something like this. At least for me, this is uncharted territory.
I told you a while back, put your money into keeping your credit card churning going. Youâd be blissfully unaffected by current interest rates, with that money having made you as much already as itâs going to earn locked up over the next 3-4 years⌠
Werent you around 12 years ago? Rates were at this level back then, too, with âno hope in sightâ.
Zero with nowhere to go but negative? I have no recollection of that.
ETA
I just checked and youâre right. I was wrong. This territory is not uncharted.
However, if rate sinks lower that will be different.
And Iâm still uncomfortable.
Jay Powell will hold press conference about a half hour from now.
The Federal Reserve announced today a lowering of the interest rates, the new target range is 0%-0.25% ([down from 1 to 1.25%. The Federal Reserve has also announced quantitative easing of $700 billion ($500 billion of Treasurys and $200 billion of agency-backed mortgage securities). This will of course cause savings account rates for consumers to drop massively as well.
With news like this if you plan to do the Ally deal you better jump on it Monday and hope they donât drop the no penalty rate until tuesday.
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I decided not to wait and opened the Ally NP CD. I should have 10 days to fund them.
Are we at a point where thinking about FDIC insurance is necessary? What if a person has CDs at, say, Ally, that amount to over the FDIC insurance limit? Are banks at risk at this moment?
Thanks to multiple people for mentioning the Ally bonus. I grabbed a couple of CDs tonight.
You do. I waited for 15 minutes on hold to confirm it.
If youâre
I think that most people know how to increase the FDIC (POD, etc) limits to the point that they wonât be over.
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Well, I guess Iâm one of those who donât know how to. Iâm single at the moment so I canât have joint accounts.
A bit of good news now. This is copied from Kenâs write up regarding the Fed rate cut:
After the FOMC statement, Fed Chair Jerome Powell gave a phone press conference and Q&A. One question asked to the Fed Chair was the possibility that the Fed will move the federal funds rate into negative territory, similar to actions taken by other central banks. Fed Chair Powell essentially said that it wasnât a policy option. Letâs hope that holds.
I surely agree with Kenâs take on this, and I hope negative rates are not on the table as an option for the Fed.
Hereâs a start âŚ
Scroll down to the section " Revocable Trust Accounts".
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Sign of the times
Here are the Connexus CD rates as of this morning:
Amount Term APY
$5,000 and over 12 months 0.51%
$5,000 and over 24 months 0.71%
$5,000 and over 36 months 0.81%
$5,000 and over 42 months 0.81%
$5,000 and over 60 months 1.01%
Read 'em and weep.
If you did not provision yourself with add-on CDs, back when you could, there is not a lot of hope going forward.
On a personal note:
I actually did that stupid NFCU $50 3% IRA CD add-on which I posted WAY up thread. It was a whole lot of trouble and inconvenience for a lousy fifty bucks. I very nearly just blew it off as being far too much of a nuisance, better things to do with my time.
Not now. My attitude on that account has flipped 180 degrees. There is no way now I could net 3% on my IRA funds when my current CD matures later this year. Iâm not. NO WAY! But I feel like a genius for having gone to the trouble of opening that stinky little add-on IRA CD. Itâs gonna save my IRA bacon. 
(now Argyll is gonna comment about bacon 
. . . or his favorite NFCU . . . . or both!)
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*** PLEASE DISREGARD THIS POST as this deal, which I found on a FIRE forum indicates that it might not be legit. In an abundance of caution, although others state it is a real deal, I DO NOT recommend at this time. My apologies, as this was discussed in detail on a respected FIRE forum before I originally posted.***
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Those are beautiful in todayâs market. Wish I had a spare 200k to take advantage of them. What am I talking about - make that a spare 500k. 
Is this for real? Where did you find this? Has anyone dealt with this company?
The Ally NP CD has dropped to 1.55% for the top tier.
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This website advertising Synovus CD rates must be bogus. I googled it and nothing came up. Turtlebug, what do you know about them? How did you find it?
That is not my experience. If you fund the Ally CD within 10 days of opening it, you get the highest interest rate during that period, in this case, the interest rate when you opened it.
This has happened to me twice in the last week. I opened a CD but couldnât fund it immediately. The rate dropped before I funded it, but when my funds came through before the end of the 10 day period, the rate went back up to the original amount.
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