Good CD Rates Over the Long Haul

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Topic Author
LISD
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Joined: Sun Feb 10, 2019 8:52 pm

Good CD Rates Over the Long Haul

Post by LISD » Tue Jul 23, 2019 11:20 pm

I have Ally bank right now and am happy with them, but I want to diversify. So I'm looking for another CU or bank - one that consistently has competitive CD rates over the long haul! Bankrate.com tells me who is 'hot today' - but 'hot today' may mean 'cold tomorrow' - not interested in that. Too much work closing/opening accounts.

What Bank/CU have you been happy with, that has provided good CD rates for many years?

Thanks

PS - I used to have Penfed but I've had issues with them in the past, and their rates are no longer competitive.

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Sandtrap
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Re: Good CD Rates Over the Long Haul

Post by Sandtrap » Tue Jul 23, 2019 11:23 pm

Wiki Bogleheads Wiki: Everything You Need to Know

stlutz
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Re: Good CD Rates Over the Long Haul

Post by stlutz » Tue Jul 23, 2019 11:34 pm

There really isn't such a thing. Years ago Ally tended to be toward the top of the list. Now they are in the "decent, but not great" category.

Banks offer high CD rates when they deposits to fund loans. Offering high rates is one method of marketing. Running lots of TV commercials is another. The point is that rates at a particular bank aren't really a function of trying to be "depositor friendly"; it's about trying to keep up with their loan department.

That is why nobody offers high rates for a the long haul. Eventually the bank has plenty of deposits and they the rates they offer become less competitive.

retiredflyboy
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Re: Good CD Rates Over the Long Haul

Post by retiredflyboy » Tue Jul 23, 2019 11:38 pm

Goldman Sachs and Synchrony Bank are good choices.
Facts are stubborn things. Everything works until it doesn’t.

Topic Author
LISD
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Re: Good CD Rates Over the Long Haul

Post by LISD » Wed Jul 24, 2019 5:06 pm

Sandtrap wrote:
Tue Jul 23, 2019 11:23 pm
Vanguard Fixed Rate Chart
https://personal.vanguard.com/us/FixedIncomeHome

Fidelity Fixed Rate Chart
https://fixedincome.fidelity.com/ftgw/fi/FILanding

Unfortunately Brokered CDs aren't competitive any longer - they were up to last year. 2.05% for a 1 year CD (brokered) is pretty low! One of the reasons I'm looking at Banks/CUs, where 2.5%-ish is more the norm.

Austintatious
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Re: Good CD Rates Over the Long Haul

Post by Austintatious » Wed Jul 24, 2019 6:38 pm

Navy Federal CU is offering 3.5% on their 5 year CDs. I'd call that a relatively good rate, considering current rates generally. They also seem to have relatively flexible parameters for qualifying for membership.

lakpr
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Re: Good CD Rates Over the Long Haul

Post by lakpr » Wed Jul 24, 2019 8:36 pm

Austintatious wrote:
Wed Jul 24, 2019 6:38 pm
Navy Federal CU is offering 3.5% on their 5 year CDs. I'd call that a relatively good rate, considering current rates generally. They also seem to have relatively flexible parameters for qualifying for membership.
Hmm... share please? I am not military or have any family members who are military. Not sure what are the "flexible parameters" that can qualify for membership? Everything I read on the internet forums leads me to believe that their membership requirements are super strict, and I have read numerous reports of people getting locked out of accounts if NFCU determines the membership was achieved fraudulently

ladycat
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Re: Good CD Rates Over the Long Haul

Post by ladycat » Wed Jul 24, 2019 8:48 pm

Barclay's has been decent. I have a 1-year CD maturing at the end of the month that was 2.4% The current APY for a 1-year CD listed on their website is 2.45% https://www.banking.barclaysus.com/online-cds.html

guyinlaw
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Re: Good CD Rates Over the Long Haul

Post by guyinlaw » Wed Jul 24, 2019 9:02 pm

lakpr wrote:
Wed Jul 24, 2019 8:36 pm
Austintatious wrote:
Wed Jul 24, 2019 6:38 pm
Navy Federal CU is offering 3.5% on their 5 year CDs. I'd call that a relatively good rate, considering current rates generally. They also seem to have relatively flexible parameters for qualifying for membership.
Hmm... share please? I am not military or have any family members who are military. Not sure what are the "flexible parameters" that can qualify for membership? Everything I read on the internet forums leads me to believe that their membership requirements are super strict, and I have read numerous reports of people getting locked out of accounts if NFCU determines the membership was achieved fraudulently

"current and retired members of the armed forces to include their families and household members, Department of Defense personnel and more."

https://www.navyfederal.org/membership/ ... bility.php

Austintatious
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Re: Good CD Rates Over the Long Haul

Post by Austintatious » Wed Jul 24, 2019 9:11 pm

lakpr wrote:
Wed Jul 24, 2019 8:36 pm
Austintatious wrote:
Wed Jul 24, 2019 6:38 pm
Navy Federal CU is offering 3.5% on their 5 year CDs. I'd call that a relatively good rate, considering current rates generally. They also seem to have relatively flexible parameters for qualifying for membership.
Hmm... share please? I am not military or have any family members who are military. Not sure what are the "flexible parameters" that can qualify for membership? Everything I read on the internet forums leads me to believe that their membership requirements are super strict, and I have read numerous reports of people getting locked out of accounts if NFCU determines the membership was achieved fraudulently
I am not a member of NFCU, though I seriously considered membership a couple of years ago and looked then at the possible ways to get there. And I've followed their CD rates fairly closely since then. I spoke with them specifically about membership and it was made clear that at least some relatives of those who had served in the military or who otherwise would qualify for membership could also be a member. And it was my impression that they would go out of their way to help an applicant get there.

I've never heard of persons being drummed out, once a member, so I can't comment on that other than to say that it would surprise me. I'd have to wonder just how it was that the CU found out about a "fraudulent" membership. It seems that there is still a requirement of some kind of link to a military service or defense-related position, but it also has sounded like those links may be fairly tenuous and still work. For example, see this recent thread:

viewtopic.php?t=285172

I know that veterans and certain relatives of veterans may join. If you're interested and Great Uncle George served in WWI, maybe it's sufficient. I suggest talking with them.

lakpr
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Re: Good CD Rates Over the Long Haul

Post by lakpr » Thu Jul 25, 2019 11:00 am

guyinlaw wrote:
Wed Jul 24, 2019 9:02 pm
"current and retired members of the armed forces to include their families and household members, Department of Defense personnel and more."

https://www.navyfederal.org/membership/ ... bility.php
Hi guyinlaw,

I am aware of that list, however my point is that unless you belong to these groups, you cannot become a member of the NFCU. That is, there is no path to membership for general public, unlike say the Pentagon Federal Credit Union (donate $ to Voice for Troops), or DCU (donate $15 for Reach Out Schools) etc.

I am an immigrant to this country, no family members before me here, so no military affiliation, nor did I marry into a military family.

I am aware that NFCU constantly puts out great tempting goodies out to its members, and I feel jealous of members who can take advantage. That is where my original question is coming from, if there is a path to membership that I have been unaware of for folks without military affiliation (self or household)

lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: Good CD Rates Over the Long Haul

Post by lakpr » Thu Jul 25, 2019 11:09 am

@ Austintatious,

Over at creditboards.com where I am also a member, I had read posts that said members were locked out because
(1) member joined initially based on Grandpa being in the army/navy, themselves not military, Grandpa died, and sometime later received notice that access is locked until grandpa’s DD-214 us produced

(2) Joined NFCU based on having a roommate who has an IN into the membership, stretching the “household members” definition beyond what was intended

(3) Becoming a member of NFCU through familial relationship to someone who years ago became a member through 1 and 2; basically became collateral damage

Topic Author
LISD
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Re: Good CD Rates Over the Long Haul

Post by LISD » Thu Jul 25, 2019 11:43 am

I was a member of NFCU for a few weeks. I'm not military but they let me join. After 2 weeks of constant mistakes and long lines I closed the account. Never again!

lakpr
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Joined: Fri Mar 18, 2011 9:59 am

Re: Good CD Rates Over the Long Haul

Post by lakpr » Thu Jul 25, 2019 11:56 am

LISD wrote:
Thu Jul 25, 2019 11:43 am
I was a member of NFCU for a few weeks. I'm not military but they let me join. After 2 weeks of constant mistakes and long lines I closed the account. Never again!
They have a $50k maximum 3.5% CD, that you can add to throughout the term. Perhaps you have been hasty in closing the account, perhaps it would have been better to leave $5 in it and keep it open :( Just saying....

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