I started investing in CDs last year, and unfortunately, I did not have your foresight!
I plan to start the application for the MYGA and then move the money there. It will be for a 3yr MYGA with AM Best A- rating and APY 3%. Will re-evaluate after 3 years.
Stop scanchain.!!
Why would you want to tie up funds for 3 yrs @ 1.77%? Couldnât you find savings or money mkt at a decent (maybe not fair) rate to tied you over for a span?
Hopefully we wonât have to wait for 3 years before money rates start to pick up. 
Thatâs true. I now plan to put the money into a 3yr MYGA that pays 3%. This has no FDIC/NCUA insurance. It is backed by the insurer and the state insurance guaranty fund, so it has a little more risk than a CD.
Just checked MYGA, & my state CA, only pays 2.45%. No FDIC/NCUA is bothersome, especially when thinking of deposits of $100k.
Many participants here look for and try to purchase the highest yielding certificates of deposit they can buy . . when they have funds available. Thatâs what I do. Iâm the same.
Just was over on the Weiss Ratings web page, noodling around. Noticed, belatedly I guess, their âWatchlistâ. Itâs on the free side of the website, but I had not used it prior. Anyway, I watchlisted all of the financial institutions where I have CDs.
That completed I pulled up the available compendium of my watchlisted institutions. Shown there is the month and year of the last rating change for each institution on my list, eleven in all.
Most of them had a rating change in 2019. For one the rating has been stable since 2018, and in one other instance, since 2016.
But by FAR the most stable rating of any institution on my list is owned by NFCU. NFCUâs âAâ rating, which stands out like a sore thumb regarding its longevity, has not changed since September of 2012!! At least by comparison, that is quite remarkable.
Where are you going to look that up?
I just followed scanchain 3yr MYGA. Then on details, it said to check your state. Plugged in CA.
I donât think I will probably go with MYGA because I still a couple good add-on CDâs to go with for now.
I agree. I would certainly go with the CDs before the MYGA if the rates are comparable or even a little worse off. It would take a non-trivial interest rate premium for me to consider using MYGAs instead of CDs.
Reminder for Andrews FCU members:
Our annual meeting will take place online, about three hours from now. It could be worth tuning in on chance they might offer us a glimpse of financial condition in the wake of the pandemic.
I attended the Andrews FCU virtual meeting. Did so, much as anything else, just to get the lay of the land and obtain some experience . . . . in preparation for PSECU.
The meeting was uneventful to boring. Interestingly they strove to speak only about the credit unionâs 2019 results, which they said were very good. Itâs a little tough for me to square that with a Weiss rating of âCâ, based on the very same 2019 outcome numbers.
Regardless, only at the end when they got 'round to âNew Businessâ did any information regarding 2020 and the pandemic emerge. The mucky mucks said all well, bed of roses, and so forth.
Make of that what you will. Like I said, I was there to get experience, and I would participate again for the same reason. The meeting lasted less than one hour, so not too much time lost.
Ken published the following yesterday. Put this in the category of âread 'em and weepâ. Nevertheless, this is what it is:
CD Deals: Unfortunately, there arenât many CD deals. Those that pop up rarely last long. Iâll just mention one CD deal.
There are no longer any institutions that offer nationally available CDs with yields of at least 2.00%. The highest nationally available CD yield is now 1.90%. This is available on a 5-year term at Georgiaâs Own Credit Union. People in any state are eligible to join this credit union via a $10 contribution to the Georgiaâs Own Foundation or by joining the Getting Ahead Association.
I came to the same conclusion recently after searching for a place for the funds that became available. I have decided that the funds will not be going into CDs this time, they are going into a 3yr 3% MYGA.
@shinobi Iâm not sure how much info weâll find out from the annual meeting about current cirucumstances. I signed up and they sent a link to some materials relating to it. It looks like last yearâs meeting lasted a whopping 10 minutes!
Wow! Ten minutes is remarkably short.
Andrews FCU allowed meeting attendees to submit questions. I submitted one, and it was answered. Have to wonder if PSECU will allow questions. Guess we shall know answer in the fullness of (not a whole lot of) time.
My question at the Andrews meeting went to pandemic impact. Who the heck cares at this point about 2019, pre-pandemic, financial results!
Update - Ratings
I have just checked Kenâs page, Weiss Ratings, and Bauer. In each instance, for credit unions, the ratings shown are based on end of 2019 data. However, I found the following helpful explanatory statement on the Bauer page:
Star ratings are current as of 06/27/2020 . Bank star ratings are based on 03/31/2020 financial data; credit union star ratings are based on 12/31/2019 financial data.
Due to the disruption that COVID-19 has caused, regulators allowed an extra month for banks to file their Call Reports this quarter; approximately 500 banks have taken advantage of the extension. As a result, you may not be able to find an existing bank on our website. This is temporary. We will get the late-filers evaluated and on our website as quickly as possible â we anticipate before the end of June.
My best knowledge is that credit unions were also granted an extra month, because of the pandemic.
Of course two business days remain in the month of June; I acknowledge that. Was hoping for something on credit unions by now . . . but no. We shall see what emerges this coming week.
The Bauer announcement does appear to address a question I raised up thread. The data we are about to receive, it would appear, will reflect. only (roughly) two weeks of pandemic impact. That is not especially helpful, but is better I suppose than the six month old, pre-pandemic, data we have now.
What was your question and what was the answer?
I inquired about the credit unionâs current financial circumstances in the wake of the pandemic. They said all is fine.
The SCOTUS ruled favorably yesterday for purchasers of CDs (and other financial products as well) from credit unions.
Hope is this SCOTUS outcome might allow credit unions to expand fields of membership. In an example of American âswift justiceâ, this case took âonlyâ four years to work its way through our courts. Disgusting.
Iâm just off the telephone with the NCUA and wanted to provide everyone this update:
There has not, as of today, been any NCUA decision as to whether or not to grant member institutions more time to submit their Q2 2020 call reports. As you know, because of the pandemic, the NCUA did grant member institutions an extra month for the filing of their Q1 2020 call reports. Because of that leniency, we depositors continue to await ratings based on that Q1 data. Whenever we finally get those ratings, they will be based on data which is AT LEAST three months old.
We can only hope the NCUA does not do that again. We will know their decision by the end of July.
Update
Some good news for a change:
Several hours ago the NCUA, finally and at long last, released their quarterly data summary report for the first quarter of 2020. Call Report Quarterly Summary Reports provide a quarterly listing of summarized accounts collected from all federally insured credit unions.
Release of this report presages ratings updates for all of the credit unions where so many of us have our certificates of deposit. I cannot tell you when the new ratings will become available. But release of that data summary had to happen first.