Chasing CD rates.

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Topic Author
Boulous
Posts: 46
Joined: Sun May 24, 2020 3:42 pm

Chasing CD rates.

Post by Boulous »

Hi Bogleheads,
In April-May of this year, I went looking for a bank to invest my cash portfolio in a ladder of CDs. I looked at Alley, credit unions, and finally settled on Marcus 1:00 percent. I locked in 1/2 of my cash portfolio -no-penalty CD- at 1:00 %, by the time I transferred another 1/4 of my cash, the rate dropped to 0.08% and for the last 1/4 of my cash, the rate dropped to 0.06%. Anyone else doing something different from other financial institutions?
Thanks
Boulous
000
Posts: 2771
Joined: Thu Jul 23, 2020 12:04 am

Re: Chasing CD rates.

Post by 000 »

What about online high yield savings at 0.8%? Although it will probably drop soon and of course the rate is not locked in.
02nz
Posts: 5562
Joined: Wed Feb 21, 2018 3:17 pm

Re: Chasing CD rates.

Post by 02nz »

Your figures are off by 10x! Marcus CD rates are around 0.8% not 0.08.
Topic Author
Boulous
Posts: 46
Joined: Sun May 24, 2020 3:42 pm

Re: Chasing CD rates.

Post by Boulous »

Sorry for the typo I meant 0.8% and 0.6%
Thanks
Boulous.
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anon_investor
Posts: 3501
Joined: Mon Jun 03, 2019 1:43 pm

Re: Chasing CD rates.

Post by anon_investor »

Boulous wrote: Sun Sep 13, 2020 7:53 pm Sorry for the typo I meant 0.8% and 0.6%
Thanks
Boulous.
Unfortunately since the Fed Funds rate is pegged at 0% to 0.25%, it is unlikely that you will find much better CD rates going forward, they will likely go down. There are no "safe" investments anymore that will pay over 1%. What is the time frame for needing your money? You might be better off just putting it into a Total Bond Market Index Fund (mutual fund or ETF) like VBTLX/BND. You could also look at Series I US Savings Bonds (https://www.treasurydirect.gov/indiv/re ... ibonds.htm).
CRTR
Posts: 341
Joined: Sat Apr 11, 2015 1:15 pm

Re: Chasing CD rates.

Post by CRTR »

Not sure if you'd be willing to spread the money among different institutions but there are a number of credit unions out there with CD rates above 1%.

I use https://www.depositaccounts.com/ to follow rates. . .
Rudedog
Posts: 265
Joined: Wed Aug 01, 2018 3:15 pm

Re: Chasing CD rates.

Post by Rudedog »

I chased rates for a few years, got tired of it and opened accounts at Marcus, Ally, Capital One and Synchrony Bank. Now I just roll maturing CDs into a new CD at one of those banks. Marcus usually wins.
MikeG62
Posts: 3107
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Chasing CD rates.

Post by MikeG62 »

CRTR wrote: Mon Sep 14, 2020 3:20 am Not sure if you'd be willing to spread the money among different institutions but there are a number of credit unions out there with CD rates above 1%.

I use https://www.depositaccounts.com/ to follow rates. . .
+1. You’ve got to look around and be prepared to move quick if you find an attractive rate.

Take a look at Barksdale Federal Credit Union and see if you meet any of their membership criteria. I opened two 5-year ladders last month. Rates just reset a week or so ago so risk of imminent change in rates not likely (but of course possible).
Real Knowledge Comes Only From Experience
SlowMovingInvestor
Posts: 1824
Joined: Sun Sep 11, 2016 11:27 am

Re: Chasing CD rates.

Post by SlowMovingInvestor »

MikeG62 wrote: Mon Sep 14, 2020 8:08 am
CRTR wrote: Mon Sep 14, 2020 3:20 am Not sure if you'd be willing to spread the money among different institutions but there are a number of credit unions out there with CD rates above 1%.

I use https://www.depositaccounts.com/ to follow rates. . .
+1. You’ve got to look around and be prepared to move quick if you find an attractive rate.

Take a look at Barksdale Federal Credit Union and see if you meet any of their membership criteria. I opened two 5-year ladders last month. Rates just reset a week or so ago so risk of imminent change in rates not likely (but of course possible).
Barksdale has some very good rates for CDs. But unless you are a veteran or belong to one of their groups (which seem like local employers), membership doesn't look that easy.
MikeG62
Posts: 3107
Joined: Tue Nov 15, 2016 3:20 pm
Location: New Jersey

Re: Chasing CD rates.

Post by MikeG62 »

SlowMovingInvestor wrote: Mon Sep 14, 2020 8:51 am
MikeG62 wrote: Mon Sep 14, 2020 8:08 am
CRTR wrote: Mon Sep 14, 2020 3:20 am Not sure if you'd be willing to spread the money among different institutions but there are a number of credit unions out there with CD rates above 1%.

I use https://www.depositaccounts.com/ to follow rates. . .
+1. You’ve got to look around and be prepared to move quick if you find an attractive rate.

Take a look at Barksdale Federal Credit Union and see if you meet any of their membership criteria. I opened two 5-year ladders last month. Rates just reset a week or so ago so risk of imminent change in rates not likely (but of course possible).
Barksdale has some very good rates for CDs. But unless you are a veteran or belong to one of their groups (which seem like local employers), membership doesn't look that easy.
Immediate family members of veterans or former military who were honorably discharged qualify.

That’s how I got into Barksdale and NFCU - my Dad was honorably discharged in the 50’s (and is still alive).
Real Knowledge Comes Only From Experience
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