Ally 12 month cd 2.25%

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Oak&Elm
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Ally 12 month cd 2.25%

Post by Oak&Elm » Fri May 11, 2018 9:31 am

I see Ally just jumped to the top in the 12 month CD rates @ 2.25% ...nice

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Rainier
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Re: Ally 12 month cd 2.25%

Post by Rainier » Fri May 11, 2018 9:32 am

Same as a 12 month US treasury but no state income tax....and its the most liquid investment in the world....and you can buy it for no cost....and you can hold it in your brokerage account with all your other investments.

NoVaBlue
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Re: Ally 12 month cd 2.25%

Post by NoVaBlue » Fri May 11, 2018 10:28 am

Rainier wrote:
Fri May 11, 2018 9:32 am
Same as a 12 month US treasury but no state income tax....and its the most liquid investment in the world....and you can buy it for no cost....and you can hold it in your brokerage account with all your other investments.
I have some CDs at Ally (second-tier emergency fund $), and while I've been happy with Ally I'm starting to wonder if I should move at least some of that $ to Treasuries. Assuming rates are the same, are there any advantages to CDs over Treasuries, or "cons" to holding Treasuries I should know about? i.e., is there some downside to parking money in Treasuries that I'm missing?

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Rainier
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Re: Ally 12 month cd 2.25%

Post by Rainier » Fri May 11, 2018 11:32 am

NoVaBlue wrote:
Fri May 11, 2018 10:28 am
Rainier wrote:
Fri May 11, 2018 9:32 am
Same as a 12 month US treasury but no state income tax....and its the most liquid investment in the world....and you can buy it for no cost....and you can hold it in your brokerage account with all your other investments.
I have some CDs at Ally (second-tier emergency fund $), and while I've been happy with Ally I'm starting to wonder if I should move at least some of that $ to Treasuries. Assuming rates are the same, are there any advantages to CDs over Treasuries, or "cons" to holding Treasuries I should know about? i.e., is there some downside to parking money in Treasuries that I'm missing?
No risk over CDs that I am aware of. As long as the UST rate is higher than the CD rate it is no brainer.

I suspect bank rates will catch up at some point though.

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aj76er
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Re: Ally 12 month cd 2.25%

Post by aj76er » Fri May 11, 2018 11:51 am

Looking at Fidelity, the 9mo T-bill is yielding 2.22%. Unless the CD has no (or very low) EWP, T-bills would be a better deal now.
"Buy-and-hold, long-term, all-market-index strategies, implemented at rock-bottom cost, are the surest of all routes to the accumulation of wealth" - John C. Bogle

SrGrumpy
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Re: Ally 12 month cd 2.25%

Post by SrGrumpy » Fri May 11, 2018 11:58 am

A great deal. Seems like yesterday that I bought a 5-year Ally CD for 2.0% Sigh.

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triceratop
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Re: Ally 12 month cd 2.25%

Post by triceratop » Fri May 11, 2018 12:09 pm

SrGrumpy wrote:
Fri May 11, 2018 11:58 am
A great deal. Seems like yesterday that I bought a 5-year Ally CD for 2.0% Sigh.
aj76er wrote:
Fri May 11, 2018 11:51 am
Looking at Fidelity, the 9mo T-bill is yielding 2.22%. Unless the CD has no (or very low) EWP, T-bills would be a better deal now.
What 9mo T-bill?

Anyway, the 12mo T-bill is currently at 2.25% so I don't see this as very attractive.
"To play the stock market is to play musical chairs under the chord progression of a bid-ask spread."

wrongfunds
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Re: Ally 12 month cd 2.25%

Post by wrongfunds » Fri May 11, 2018 2:17 pm

triceratop wrote:
Fri May 11, 2018 12:09 pm
SrGrumpy wrote:
Fri May 11, 2018 11:58 am
A great deal. Seems like yesterday that I bought a 5-year Ally CD for 2.0% Sigh.
aj76er wrote:
Fri May 11, 2018 11:51 am
Looking at Fidelity, the 9mo T-bill is yielding 2.22%. Unless the CD has no (or very low) EWP, T-bills would be a better deal now.
What 9mo T-bill?

Anyway, the 12mo T-bill is currently at 2.25% so I don't see this as very attractive.
How does one invest in the T-bill using Fidelity?

SrGrumpy
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Re: Ally 12 month cd 2.25%

Post by SrGrumpy » Fri May 11, 2018 2:18 pm

triceratop wrote:
Fri May 11, 2018 12:09 pm
SrGrumpy wrote:
Fri May 11, 2018 11:58 am
A great deal. Seems like yesterday that I bought a 5-year Ally CD for 2.0% Sigh.
aj76er wrote:
Fri May 11, 2018 11:51 am
Looking at Fidelity, the 9mo T-bill is yielding 2.22%. Unless the CD has no (or very low) EWP, T-bills would be a better deal now.
What 9mo T-bill?

Anyway, the 12mo T-bill is currently at 2.25% so I don't see this as very attractive.
Ally is fine for me - my income is below the standard deduction, and I have the infrastructure in place. Trying to keep it simple.

thx1138
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Re: Ally 12 month cd 2.25%

Post by thx1138 » Sat May 12, 2018 3:10 pm

triceratop wrote:
Fri May 11, 2018 12:09 pm

What 9mo T-bill?

Anyway, the 12mo T-bill is currently at 2.25% so I don't see this as very attractive.
All the various ones maturing around Feb 2019:

http://www.wsj.com/mdc/public/page/2_3020-treasury.html

I suppose you could argue whether they are variously bills or notes depending on their origin...

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