3.75% - 5-year CD

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
pc95
Posts: 189
Joined: Sat Sep 17, 2011 9:26 pm

3.75% - 5-year CD

Post by pc95 » Mon Nov 05, 2018 10:17 pm

https://www.greenwoodcu.org/gcu-rates/c ... -deposits/

This is nice, 4%-CDs may be following pretty soon.

Sidney
Posts: 6694
Joined: Thu Mar 08, 2007 6:06 pm

Re: 3.75% - 5-year CD

Post by Sidney » Mon Nov 05, 2018 11:18 pm

Very odd looking yield curve. Most of the yield is at 30 months. Not sure the second 30 months is worth the risk.
I always wanted to be a procrastinator.

nalor511
Posts: 270
Joined: Mon Jul 27, 2015 1:00 am

Re: 3.75% - 5-year CD

Post by nalor511 » Tue Nov 06, 2018 7:09 am

3.68 interest, 3.75 apy

z3r0c00l
Posts: 1201
Joined: Fri Jul 06, 2012 11:43 am
Location: NYC
Contact:

Re: 3.75% - 5-year CD

Post by z3r0c00l » Tue Nov 06, 2018 9:49 am

3.35% for half the duration in the 30 month, and even the 12 month offers a reasonable 3%. I would probably go shorter.

pc95
Posts: 189
Joined: Sat Sep 17, 2011 9:26 pm

Re: 3.75% - 5-year CD

Post by pc95 » Tue Nov 06, 2018 11:14 am

I'm going full tilt if/when 4%. Thought this is a noteworthy step though. I think the tendency for policy seems to be knee-jerk rate cuts. Cheap borrowing. Much easier to take a penalty if incorrect, and jump into a higher rate.

CRTR
Posts: 144
Joined: Sat Apr 11, 2015 1:15 pm

Re: 3.75% - 5-year CD

Post by CRTR » Tue Nov 06, 2018 5:18 pm

pc95 wrote:
Tue Nov 06, 2018 11:14 am
I'm going full tilt if/when 4%. Thought this is a noteworthy step though. I think the tendency for policy seems to be knee-jerk rate cuts. Cheap borrowing. Much easier to take a penalty if incorrect, and jump into a higher rate.
Time to roll over a rung in Mom's CD ladder . . . . 4.08% APY Connexus Credit Union for 4 year CD according to DepositAccounts.com I'm going to call tomorrow and confirm because it sounds fishy.
https://www.depositaccounts.com/cd/4-year-cd-rates.html

I've been using a CD ladder in lieu of half her bond allocation for almost 10 years now. All her CDs have EWP of 180 or 90 day interest penalty. Not sure why this matters to me so much? I've yet to flip one early. All but one of the Cds is above 3% now. If I had it all to do over again, I would have put it all into CDs instead of a bond fund. The Cds have outperformed VBTLX over that interval . . . guess I need a new crystal ball . . .

nalor511
Posts: 270
Joined: Mon Jul 27, 2015 1:00 am

Re: 3.75% - 5-year CD

Post by nalor511 » Tue Nov 06, 2018 6:40 pm

I think the 4%/4.0%APY is Garden Savings:
https://www.gardensavingsfcu.org/notice-details.html
https://www.depositaccounts.com/banks/g ... s-fcu.html

Free membership by joining american consumer council. Text:

Join us as we celebrate America's military Veterans this month with two great certificate specials ... and we'll donate money to support our Veterans as you do! For a limited time only take advantage of the following great rates:
2-Year Certificates 3.00% rate 3.04% Annual Percentage Yield
4-Year Certificates 4.00% rate 4.08% Annual Percentage Yield

pc95
Posts: 189
Joined: Sat Sep 17, 2011 9:26 pm

Re: 3.75% - 5-year CD

Post by pc95 » Tue Nov 06, 2018 9:03 pm

Thanks Nalor.

User avatar
fortfun
Posts: 1087
Joined: Tue Apr 19, 2016 7:31 pm

Re: 3.75% - 5-year CD

Post by fortfun » Tue Nov 06, 2018 9:38 pm

Sidney wrote:
Mon Nov 05, 2018 11:18 pm
Very odd looking yield curve. Most of the yield is at 30 months. Not sure the second 30 months is worth the risk.
Why do you suppose this bank's CDs rates are much better than most others?

pc95
Posts: 189
Joined: Sat Sep 17, 2011 9:26 pm

Re: 3.75% - 5-year CD

Post by pc95 » Tue Nov 06, 2018 10:09 pm

I think he's talking about the interest rate projection with FEDs over time - its been generally mentioned there are still rate hikes in the hopper.

pc95
Posts: 189
Joined: Sat Sep 17, 2011 9:26 pm

Re: 3.75% - 5-year CD

Post by pc95 » Tue Nov 06, 2018 10:15 pm

[quote=CRTR post_id=4201423 time=1541542718 user_id=88548]
[quote=pc95 post_id=4200787 time=1541520873 user_id=29974]
I'm going full tilt if/when 4%. Thought this is a noteworthy step though. I think the tendency for policy seems to be knee-jerk rate cuts. Cheap borrowing. Much easier to take a penalty if incorrect, and jump into a higher rate.
[/quote]

Time to roll over a rung in Mom's CD ladder . . . . 4.08% APY Connexus Credit Union for 4 year CD according to DepositAccounts.com I'm going to call tomorrow and confirm because it sounds fishy.
https://www.depositaccounts.com/cd/4-year-cd-rates.html

I've been using a CD ladder in lieu of half her bond allocation for almost 10 years now. All her CDs have EWP of 180 or 90 day interest penalty. Not sure why this matters to me so much? I've yet to flip one early. All but one of the Cds is above 3% now. If I had it all to do over again, I would have put it all into CDs instead of a bond fund. The Cds have outperformed VBTLX over that interval . . . guess I need a new crystal ball . . .
[/quote]

Thx,
When CDs make it into the 4+% range that's when I start looking to move money around back in CDs. The October stock hit unfortunately coincided, and left me at loss position in some cases that I might've considered selling for CDs. But as one of the guys earlier mentioned, there may be some more upward rate increases still in the tank - in other words, now may not be the top, although if you're laddering, I think now is not a bad time at all.

User avatar
peterinjapan
Posts: 466
Joined: Fri May 15, 2015 8:41 am
Location: Japan!

Re: 3.75% - 5-year CD

Post by peterinjapan » Tue Nov 06, 2018 11:05 pm

One question I have is, why can a CD go above the US treasury "risk-free rate" which is presumably 3.1x% for a ten year treasury now.

nalor511
Posts: 270
Joined: Mon Jul 27, 2015 1:00 am

Re: 3.75% - 5-year CD

Post by nalor511 » Wed Nov 07, 2018 12:09 am

peterinjapan wrote:
Tue Nov 06, 2018 11:05 pm
One question I have is, why can a CD go above the US treasury "risk-free rate" which is presumably 3.1x% for a ten year treasury now.
When the bank needs capital (to fund loans, reserves, other initiatives), they may pay more to get those deposits in, or because they're making money loaning your money out?

IHateCasinos
Posts: 29
Joined: Fri Jan 22, 2016 4:58 pm
Location: Portland, OR

Re: 3.75% - 5-year CD

Post by IHateCasinos » Thu Nov 08, 2018 4:17 pm

that is one CRAZY looking yield curve!!!
Those guys look desperate for cash.
Personally, I would look elsewhere. CU / bank failures are a huge admin mess.

Especially since there are rising rates between the banks overnight [interbank] rates as the Treasury selling continues.
:)

Post Reply