0.65% on a 9 month CD, is there anything better for now?

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Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

0.65% on a 9 month CD, is there anything better for now?

Post by Boulous »

Hi Bogleheads,
My bank is offering me a 9 month CD for 0.65% rate, can I do better somewhere else? there is a convivence to stay with my current bank instead of moving things around, your feedbacks are greatly appreciated.- this is my cash bucket I use in retirement-
Thanks
Boulous
Monsterflockster
Posts: 634
Joined: Thu Nov 21, 2019 12:03 am

Re: 0.65% on a 9 month CD, is there anything better for now?

Post by Monsterflockster »

Do you have a mortgage? If so paying extra is one way to improve that rate.
Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Re: 0.65% on a 9 month CD, is there anything better for now?

Post by Boulous »

No, I have been mortgage free since 1991 years before I retired.
Thanks
Boulous
ChiKid24
Posts: 375
Joined: Fri Aug 09, 2019 3:43 pm

Re: 0.65% on a 9 month CD, is there anything better for now?

Post by ChiKid24 »

I'm getting 3% on savings account at HM Bradley. It's on up to $100k. Some hoops to go through to get the rate, but it's the best I've seen on that high a balance.
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William Million
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Location: A Deep Mountain

Re: 0.65% on a 9 month CD, is there anything better for now?

Post by William Million »

Decent rate but you can get .6% on an ordinary savings account. For me, it wouldn't be worth a CD for .05%. That's my rate with Live Oak.
csmath
Posts: 541
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Re: 0.65% on a 9 month CD, is there anything better for now?

Post by csmath »

ChiKid24 wrote: Wed Apr 07, 2021 10:52 pm I'm getting 3% on savings account at HM Bradley. It's on up to $100k. Some hoops to go through to get the rate, but it's the best I've seen on that high a balance.
HM Bradley seems like a reasonable option if your not actually withdrawing from the account but I believe OP uses this account for short term retirement expenses based on the 9 month CD duration. If I understand the HM Bradley requirements for the 3% rate you wouldn't want to do large withdrawals. Of course having 3% rate for 6 months out of the year is better than 0.65% for a whole year. OP, how often do you expect to have access to these funds? Are they actually needed every 9 months or is that just a duration that gives you enough flexibility, just in case?

I think your options are quite different whether you need the funds after 9 months for sure or if you just want the option to access them every 9 months. I also think you would get much better replies if we knew what sort of amount we are dealing with here. If it is 10k, then the 9 month difference between 0.65% and 3% is insignificant but if it is 100k, then not only will the high % be worth more hoops but it also requires an account with higher limits. There are a lot of easy 2% to 3% rate accounts available but they usually have 10k to 15k limits.
lakpr
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Re: 0.65% on a 9 month CD, is there anything better for now?

Post by lakpr »

Have you taken a look at this thread?

viewtopic.php?f=1&t=340088&start=50

Toyota Income Driver Notes offering 1.5% APY on what's essentially a money market fund. No FDIC protection, these notes are technically senior unsecured notes, and TMCC (Toyota Motor Credit Corp) is the sole obligor on these notes. Unless you think TMCC is going to go bankrupt before you redeem these notes, I think this is the best offering available
Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Re: 0.65% on a 9 month CD, is there anything better for now?

Post by Boulous »

ChiKid24 wrote: Wed Apr 07, 2021 10:52 pm I'm getting 3% on savings account at HM Bradley. It's on up to $100k. Some hoops to go through to get the rate, but it's the best I've seen on that high a balance.
Thanks for the feedback, I checked HM Bradley, good rate, but not easy to enroll.
Boulous
Topic Author
Boulous
Posts: 76
Joined: Sun May 24, 2020 3:42 pm

Re: 0.65% on a 9 month CD, is there anything better for now?

Post by Boulous »

lakpr wrote: Thu Apr 08, 2021 10:11 am Have you taken a look at this thread?

viewtopic.php?f=1&t=340088&start=50

Toyota Income Driver Notes offering 1.5% APY on what's essentially a money market fund. No FDIC protection, these notes are technically senior unsecured notes, and TMCC (Toyota Motor Credit Corp) is the sole obligor on these notes. Unless you think TMCC is going to go bankrupt before you redeem these notes, I think this is the best offering available
Thanks for the feedback, I will check it out.
Boulous
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ipdiddly
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Location: MA

Re: 0.65% on a 9 month CD, is there anything better for now?

Post by ipdiddly »

Bear in mind that the amount of interest earned on $100K over 12 months at 0.4%, 0.6% and 0.8% is $400, $600 and $800. For 9 months (3/4 year), those amounts are $300, $450 and $600. And that's at $100K. For smaller amounts, the amount of interest is even less. So one needs to decide if relatively small differences are worth the effort to eke out a fraction of a percent. Now if you are investing $1MM, go for it.
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