seriousthistime
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Post by seriousthistime on Jan 19, 2024 13:09:06 GMT -5
Thanks for that "warning." I would freak out if I were to see my CD value going down.
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Post by minnesotapaintlady on Jan 19, 2024 13:18:16 GMT -5
Also, with brokered CD's the higher rate ones are not call protected, which means, the issuing bank can pull out early. They still pay you the interest up to that date, but you might sign up for a 5 year CD at 4.5% rate and only get 1 before you get dumped. They might do this if rates are dropping. Why pay you 4.5% when they got people lined up that would only charge 3.5%?
You can choose to buy CDs that are call protected, but your rate probably won't be as high.
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Tiny
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Post by Tiny on Jan 19, 2024 13:49:52 GMT -5
Just an observation - Ally's High Yield 12 month CDs are slowly dropping: In December they were 5.25% APY (I think they may have gone to 5.35% for a week or two after that. And then they dropped to 5.15% APY and today the 12 month CD is 5.00 APY
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Artemis Windsong
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The love in me salutes the love in you. M. Williamson
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Post by Artemis Windsong on Jan 22, 2024 22:13:15 GMT -5
The banks and s&ls run specials on cds for a short time. I goofed around and missed Seattle Bank's that yielded 5.8 last December. I probably already said this but I did switch the TD to 1.3% fixed plus. My DD is going to do that also.
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countrygirl2
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Post by countrygirl2 on Jan 23, 2024 12:31:44 GMT -5
We have a local bank offering 5.25% for 257 days right now. But our money is pretty much invested for the time being.
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Tiny
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Post by Tiny on Jan 28, 2024 15:36:34 GMT -5
And one last observation: Ally 12 month CDs just went to 4.90% The longer term CDs are (and have been) less than that. I guess the slow dropping of interest rates are happening at other places as well. Ally never was "the highest/best" rate. But at least it isn't horrible.
Kind of makes the I-Bonds with 1.3 fixed rate a little more attractive for long term "cash" savings.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Jan 30, 2024 9:35:59 GMT -5
And one last observation: Ally 12 month CDs just went to 4.90% The longer term CDs are (and have been) less than that. I guess the slow dropping of interest rates are happening at other places as well. Ally never was "the highest/best" rate. But at least it isn't horrible. Kind of makes the I-Bonds with 1.3 fixed rate a little more attractive for long term "cash" savings. the latest I heard on expectations is that the fed plans to drop rates this year, so that makes sense they are cooking it into their offerings. I am going to try to see if I can get my 10k into 2024 ibonds before the next reset.
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Tiny
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Post by Tiny on Jan 30, 2024 12:44:15 GMT -5
On the i-bond front: The best guesstimate for what the future FIXED rate might be should be available on/after April 15th. The variable rate will have been calculated by then by the Bogleheads or Tipswatch. If you are going to wait for the last minute to buy I-bonds to get the old fixed rate (1.3%) you will need to set up the "purchase" on or before Friday April 26th. SEtting it for Monday April 29th or April 30th might not give enough processing time to get the old rate. (there's been some chatter that scheduling an I-Bond purchase for the 29th/30th might not happen on those days and they'd be "May 1st" bonds). If I really want the old rate - I want to be 100% sure to get bonds with the old rate.... I have 5K of 2024 Ibonds with the 1.3% fixed rate. I'm waiting until the estimates for the new fixed rate come out to decide if I should buy 5K more before April 26th or after May 1st. I'm motivated by the Fixed Rate this time around. My plan: Marked my calendar for April 15th/16th - to find out the possible fixed rate ( check bogleheads or tipswatch for the guesstimate) and then have my money ready to go to purchase on or before April 26th. I need some time to get the 5K together (and this falls into my spring "cash hemorrhage" when lots of lumpy bills come due) so I need to make sure I have this money queued up and ready to go.
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Rukh O'Rorke
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Post by Rukh O'Rorke on Mar 1, 2024 12:25:46 GMT -5
Hey everyone! It's I-bond interest day!!!
My interest for this month is over 100, by just a hair, but I am satisfied! It was a bit under 100 last month, so boo hiss for that. Still have paper ones I don't know about...will do something....someday....about that.....
Excited to talk with one of my offspring. Convinced them to create a treasurydirect account to max Ibonds on the 27th/28th. I hope it all went through in time for them to get a full month of interest! Get them hooked, amiright?
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countrygirl2
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Post by countrygirl2 on Mar 2, 2024 21:51:15 GMT -5
I have $10k in I bonds worth $14k now, but they don't have fixed rates as part of the interest. I should have invested them in CD's when the rates were higher. Mine don't start maturing till 2031 and they are all going to be worth a lot in 6 more years so I just hate to touch them. Hubs thinks we may have to use them in our next house purchase, but I'm fighting that all the way. These are safe, need to look up what years have fixed interest and how much. Been happy with the gain though. They have gained 2 1/2 times the amount I invested, soon will be 3 times the amount invested. We have 70 of them.
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dannylion
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Post by dannylion on Mar 4, 2024 15:29:05 GMT -5
I do have a Fidelity account. I was confused about their brokered CDs vs. Fractional CDs (are they just for amounts below $1K?) so I didn't look further. How does that work? Do they list CDs to choose from at different banks, etc., or do you just deposit the money into something called a brokered CD in your Fidelity account and they take care of choosing the bank and the doing the leg work? I like the Fidelity CD ladders. It saves having to figure out the terms and how to get them to ladder efficiently.
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Artemis Windsong
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The love in me salutes the love in you. M. Williamson
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Post by Artemis Windsong on Apr 25, 2024 13:13:00 GMT -5
Does anyone know what the rate will be starting in May? I read possibly 4.17%.
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resolution
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Post by resolution on Apr 25, 2024 13:42:52 GMT -5
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