Best CD rates thread

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Kevin M
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Re: Best CD rates thread

Post by Kevin M » Sun Oct 20, 2019 3:58 pm

scintillator wrote:
Sun Oct 20, 2019 3:12 pm
Why is this PSECU offer not listed on Bankrate.com's 'Best CD Rates' page? It bothers me that should I ever want to invest in a CD, I'll have to come post on here and hope someone knows of a good offer.
Could be because sites like that don't realize it's available nationwide by joining an organization.

Similarly, it isn't listed at DepositAccounts with the default settings for my region, but if I change the region to "Any", it shows up.

There has been some confusion about the membership requirements. Here is what DepositAccounts says:
Membership in Pennsylvania State Employees Credit Union is open to all Pennsylvania residents through membership in the Pennsylvania Recreation & Parks Society ($20 membership fee). Membership is also open to Pennsylvania state or local government employees, municipality or school district employees, students, faculty, staff and alumni of universities in the Pennsylvania State System, and over 1,000 Select Employer Groups.
However, the first sentence is no longer correct, as anyone who joins PRPS is eligible, and PSECU pays half of the $20 membership fee.

Speaking of the membership fee, be sure to leave $20 in your share account, including the $10 PSECU deposits for you. I didn't do that, figuring that any fees would have been charged when I first joined, but they charged it several days later, and I ended up with a negative balance. There also was a $30 overdraft charge, but it was reversed before I even saw it. I called, and the rep said no problem as long as I planned to make a deposit soon. I must wait another week or so, as I linked PSECU from Vanguard, and VG doesn't let you transfer to a new bank for 7-10 days after setting it up.

Between my two CD purchases, the payment to PRPS, and the overdraft withdrawal, I'm already at four withdrawals for the month, so am hesitant to set up a link to PSECU from another bank, as the withdrawal to reverse the trial deposits would put me at five, leaving only one for the rest of the month.

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Re: Best CD rates thread

Post by joyceg2797 » Sun Oct 20, 2019 4:28 pm

I purchased my CD's at PSECU Friday and funded them with money sent to the share account by wire transfer. I'm trying to link this account with my Ally account to send ACH money for the monthly auto-deposits. Ally seems to be having trouble recognizing PSECU and so they haven't been able to set up a link. Any suggestions?

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Re: Best CD rates thread

Post by indexfundfan » Sun Oct 20, 2019 5:17 pm

Kevin M wrote:
Sun Oct 20, 2019 3:58 pm
Between my two CD purchases, the payment to PRPS, and the overdraft withdrawal, I'm already at four withdrawals for the month, so am hesitant to set up a link to PSECU from another bank, as the withdrawal to reverse the trial deposits would put me at five, leaving only one for the rest of the month.
I went ahead and opened the free checking account as well, so as to overcome the withdrawal count. My transactions are all through the checking account.
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Re: Best CD rates thread

Post by Kevin M » Sun Oct 20, 2019 6:11 pm

indexfundfan wrote:
Sun Oct 20, 2019 5:17 pm
Kevin M wrote:
Sun Oct 20, 2019 3:58 pm
Between my two CD purchases, the payment to PRPS, and the overdraft withdrawal, I'm already at four withdrawals for the month, so am hesitant to set up a link to PSECU from another bank, as the withdrawal to reverse the trial deposits would put me at five, leaving only one for the rest of the month.
I went ahead and opened the free checking account as well, so as to overcome the withdrawal count. My transactions are all through the checking account.
Haha! I submitted an application for a checking account about an hour ago, for the exact same reason. Wish I had just included a checking account when I first joined (it's an option).

On the checking account application I selected to deposit $100 using a credit card, as I did on the initial application (earn $2 cash back). If that works, then I'll have $100 in the checking account, and can use $15 of that to cover the negative share account balance. If not, I'll link PSECU to Ally (assuming I don't have a problem, as someone just posted), and shoot the money over as soon as it's set up.

We just submitted an application for my wife, and included the checking account for this reason.

To save me a phone call, is it clear what account number to use for the checking account? Some (most?) credit unions just assign a suffix to additional accounts, with the member number being the only actual account number. Some credit unions give you a completely different account number to use for ACH transfers.

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Re: Best CD rates thread

Post by Kevin M » Sun Oct 20, 2019 6:15 pm

joyceg2797 wrote:
Sun Oct 20, 2019 4:28 pm
I purchased my CD's at PSECU Friday and funded them with money sent to the share account by wire transfer. I'm trying to link this account with my Ally account to send ACH money for the monthly auto-deposits. Ally seems to be having trouble recognizing PSECU and so they haven't been able to set up a link. Any suggestions?
Can you be more specific about what you mean by "trouble recognizing"? Which method did Ally present: trial deposits or log on to PSECU using your username and password?

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Re: Best CD rates thread

Post by Kevin M » Sun Oct 20, 2019 6:39 pm

Since I saw that one must expand region to "any" at DepositAccounts to see the PSECU CD, I thought I'd mention a few of the other highest yielding CDs I see when I do that.

For 2-year:

I see 24-month at Encompass CU at 3.04% APY with these eligibility requirements:
Membership in Encompass Credit Union is open to those who live, work, worship, or attend school in Clinton, Howard, or Tipton County, Indiana. Membership is also open to immediate family of current Encompass Credit Union members, as well as immediate family of those who are membership-eligible.
According to the DA blog post on this, they're offering 3y, 4y and 5y CDs at the same rate. If you're eligible, consider one of the longer terms, as the EWP is only three months of interest (and only one month if less than one year to maturity).

I see Western Vista FCU 29-month at 3.00%. Eligibility:
Membership in Western Vista Federal Credit Union is open to those who live, work, or worship in the Wyoming cities of Casper or Cheyenne, or Natrona County, Wyoming.

Western Vista’s Membership page indicates there is an easy membership requirement. CSR confirmed any U.S. citizen or resident alien, regardless of residency status, is eligible to join by making a $5 contribution to the Community Foundation.
So this looks like another possibility for nationwide availability. However,
DA blog post wrote:Western Vista does not have any kind of online application. If you don’t live near any of the three Wyoming branches (Cheyenne and Casper), you can request a membership application be sent via email. According to CSR, all out-of-area transactions (including opening a CD) can be done by email, but all official documents must be notarized.
Yuck. This makes it not nearly as attractive as PSECU, at which everything can be done online.

There are a number of other 2-year deals at 2.85%-2.90%.

Looking at 5-year CDs, there are three CUs offering 3.35% if you expand to "any" state. https://www.depositaccounts.com/cd/5-year-cd-rates.html.

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Re: Best CD rates thread

Post by joyceg2797 » Sun Oct 20, 2019 6:46 pm

Kevin M wrote:
Sun Oct 20, 2019 6:15 pm
joyceg2797 wrote:
Sun Oct 20, 2019 4:28 pm
I purchased my CD's at PSECU Friday and funded them with money sent to the share account by wire transfer. I'm trying to link this account with my Ally account to send ACH money for the monthly auto-deposits. Ally seems to be having trouble recognizing PSECU and so they haven't been able to set up a link. Any suggestions?
Can you be more specific about what you mean by "trouble recognizing"? Which method did Ally present: trial deposits or log on to PSECU using your username and password?

Kevin
I guess I don't understand what the problem seems to be. Ally said they can't verify my PSECU account but they didn't (can't) put in the two small deposits. They said they were researching the issue and I may have to have PSECU send a letter to Ally. The initial wire transfer from Ally to PSECU went through fine but I can't seem to get Ally to link the account.

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Re: Best CD rates thread

Post by indexfundfan » Sun Oct 20, 2019 7:23 pm

Kevin M wrote:
Sun Oct 20, 2019 6:11 pm
To save me a phone call, is it clear what account number to use for the checking account? Some (most?) credit unions just assign a suffix to additional accounts, with the member number being the only actual account number. Some credit unions give you a completely different account number to use for ACH transfers.
Very good question. Here's my experience. After my checking account was approved, I sent a wire to PSECU using the member number (which is the same as savings) and in the additional instructions, I specify "credit to checking". The wire was successfully credited to checking.

After that, I used the member number with account type = checking for ACH linking. It worked.

But later on, when I received the PSECU check book, I realized the account number on the check book is actually different from the member number. I tried the new account number for ACH linking. It also worked.

For consistency, I am now just using the account number on the check book, and I have removed the others.
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Re: Best CD rates thread

Post by Kevin M » Sun Oct 20, 2019 7:33 pm

indexfundfan wrote:
Sun Oct 20, 2019 7:23 pm
Kevin M wrote:
Sun Oct 20, 2019 6:11 pm
To save me a phone call, is it clear what account number to use for the checking account? Some (most?) credit unions just assign a suffix to additional accounts, with the member number being the only actual account number. Some credit unions give you a completely different account number to use for ACH transfers.
Very good question. Here's my experience. After my checking account was approved, I sent a wire to PSECU using the member number (which is the same as savings) and in the additional instructions, I specify "credit to checking". The wire was successfully credited to checking.

After that, I used the member number with account type = checking for ACH linking. It worked.

But later on, when I received the PSECU check book, I realized the account number on the check book is actually different from the member number. I tried the new account number for ACH linking. It also worked.

For consistency, I am now just using the account number on the check book, and I have removed the others.
Thanks for this detailed explanation. Do you see the account number on the checks anywhere online? Is it related at all to the member number?

Thanks,

Kevin
Last edited by Kevin M on Sun Oct 20, 2019 7:41 pm, edited 1 time in total.
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Re: Best CD rates thread

Post by Kevin M » Sun Oct 20, 2019 7:40 pm

joyceg2797 wrote:
Sun Oct 20, 2019 6:46 pm
Kevin M wrote:
Sun Oct 20, 2019 6:15 pm
joyceg2797 wrote:
Sun Oct 20, 2019 4:28 pm
I purchased my CD's at PSECU Friday and funded them with money sent to the share account by wire transfer. I'm trying to link this account with my Ally account to send ACH money for the monthly auto-deposits. Ally seems to be having trouble recognizing PSECU and so they haven't been able to set up a link. Any suggestions?
Can you be more specific about what you mean by "trouble recognizing"? Which method did Ally present: trial deposits or log on to PSECU using your username and password?

Kevin
I guess I don't understand what the problem seems to be. Ally said they can't verify my PSECU account but they didn't (can't) put in the two small deposits. They said they were researching the issue and I may have to have PSECU send a letter to Ally. The initial wire transfer from Ally to PSECU went through fine but I can't seem to get Ally to link the account.
I was wondering specifically at what point in trying to link the account you ran into the problem. Did you try to add it online? At exactly which step did you encounter an error, and what was the error message?

For example, when I enter the routing number 231381116 at Ally in the Add External Account page, it displays "Pennsylvania State Employees Credit Union", so Ally's system does indeed seem to recognize PSECU. I'm not going to try and actually add it at this point, as I want to wait until I get a checking account open, then link that.

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Re: Best CD rates thread

Post by indexfundfan » Sun Oct 20, 2019 7:46 pm

Kevin M wrote:
Sun Oct 20, 2019 7:33 pm
indexfundfan wrote:
Sun Oct 20, 2019 7:23 pm
Very good question. Here's my experience. After my checking account was approved, I sent a wire to PSECU using the member number (which is the same as savings) and in the additional instructions, I specify "credit to checking". The wire was successfully credited to checking.

After that, I used the member number with account type = checking for ACH linking. It worked.

But later on, when I received the PSECU check book, I realized the account number on the check book is actually different from the member number. I tried the new account number for ACH linking. It also worked.

For consistency, I am now just using the account number on the check book, and I have removed the others.
Thanks for this detailed explanation. Do you see the number on the account number on the checks anywhere online? Is it related at all to the member number?
The checking account number is completely different from the member number.

I just checked. I cannot find the checking account number anywhere on the website (I tried the usual places but it could be hidden in some place I didn't check). The checking account number also did not appear in the statement.
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Re: Best CD rates thread

Post by Chesterfield » Sun Oct 20, 2019 7:54 pm

I linked PSECU to 3 external banks and I used membership number as my account numbers and I had no problems linking all 3.

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Re: Best CD rates thread

Post by MikeG62 » Mon Oct 21, 2019 8:13 am

Kevin M wrote:
Sun Oct 20, 2019 7:40 pm

For example, when I enter the routing number 231381116 at Ally in the Add External Account page, it displays "Pennsylvania State Employees Credit Union", so Ally's system does indeed seem to recognize PSECU.
Same experience for me. Trial deposits showed up the next day.

In process of doing the same thing with Marcus. However, trial deposits did not show up Friday (which was the next business day). I’ll check today when I get back in town. Someone else posted that it took two days with Marcus.

Edit - Just checked and my trial deposits between Marcus and PSECU posted today (two business days). That account is now linked as well.
Last edited by MikeG62 on Mon Oct 21, 2019 12:55 pm, edited 1 time in total.
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Re: Best CD rates thread

Post by Scooter57 » Mon Oct 21, 2019 11:45 am

joyceg2797 wrote:
Sun Oct 20, 2019 6:46 pm


I guess I don't understand what the problem seems to be. Ally said they can't verify my PSECU account but they didn't (can't) put in the two small deposits. They said they were researching the issue and I may have to have PSECU send a letter to Ally. The initial wire transfer from Ally to PSECU went through fine but I can't seem to get Ally to link the account.
I have run into this problem with other credit unions. When you do a wire, they just need your account number and the default is your share account. But for an ACH transfer, they need the specific account number, which is NOT the same as the 01, 02, etc suffix you see online.

Call customer service and ask them what the exact account number is for your share account when you set up ACH from another institution.

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Re: Best CD rates thread

Post by Scooter57 » Mon Oct 21, 2019 11:51 am

Question for Kevin M:

What do you think about that 5 year 3.00 APY CD that PSECU is offering?

My 2024 rung of my CD ladder is complete, but only with CDs that mature in January of 2024, so I am thinking that I might buy a 3% CD 5 year now since the long term rates are so poor and treat it as a 2025 CD since we are only two months away from year end.

I remember all too well the years when I was salivating at 2.25% 5 year CDs. They look like they might come back again.

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Re: Best CD rates thread

Post by MikeG62 » Mon Oct 21, 2019 12:59 pm

Scooter57 wrote:
Mon Oct 21, 2019 11:45 am
joyceg2797 wrote:
Sun Oct 20, 2019 6:46 pm


I guess I don't understand what the problem seems to be. Ally said they can't verify my PSECU account but they didn't (can't) put in the two small deposits. They said they were researching the issue and I may have to have PSECU send a letter to Ally. The initial wire transfer from Ally to PSECU went through fine but I can't seem to get Ally to link the account.
I have run into this problem with other credit unions. When you do a wire, they just need your account number and the default is your share account. But for an ACH transfer, they need the specific account number, which is NOT the same as the 01, 02, etc suffix you see online.

Call customer service and ask them what the exact account number is for your share account when you set up ACH from another institution.
I used only my member number (and PSECU's routing number) and the trial deposits between Ally and PSECU posted in one business day. Did the same thing with Marcus and it posted in two business days. I only have a share account and the CD's - no checking account at PSECU.
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Re: Best CD rates thread

Post by Kevin M » Mon Oct 21, 2019 2:19 pm

Scooter57 wrote:
Mon Oct 21, 2019 11:51 am
Question for Kevin M:

What do you think about that 5 year 3.00 APY CD that PSECU is offering?

My 2024 rung of my CD ladder is complete, but only with CDs that mature in January of 2024, so I am thinking that I might buy a 3% CD 5 year now since the long term rates are so poor and treat it as a 2025 CD since we are only two months away from year end.
Since the Treasury yield curve is basically flat between 1-year and 5-year maturities, the 5y CD at 3.00% has about the same yield premium as the 2y CD at 3.00%, so about 144 basis points, not considering the state tax exemption of the Treasury. The latter would add about 20 basis points to the Treasury TEY for me, but 124 bps still is a healthy yield premium.

As posted above, there are a few credit unions offering 3.35% on 5y CDs, so I probably would look at those too, to see if I were eligible to join one of them.
Scooter57 wrote:
Mon Oct 21, 2019 11:51 am
I remember all too well the years when I was salivating at 2.25% 5 year CDs. They look like they might come back again.
Yep, still have some.

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Re: Best CD rates thread

Post by Ricchan » Mon Oct 21, 2019 2:26 pm

MikeG62 wrote:
Mon Oct 21, 2019 8:13 am
Same experience for me. Trial deposits showed up the next day.

In process of doing the same thing with Marcus. However, trial deposits did not show up Friday (which was the next business day). I’ll check today when I get back in town. Someone else posted that it took two days with Marcus.

Edit - Just checked and my trial deposits between Marcus and PSECU posted today (two business days). That account is now linked as well.
Hi Mike, I believe that person might have been me. :) I have a quick question, if you don't mind.

- When I did the trial deposits with Ally, they made 2 deposits and 1 withdrawal on the same day.
- When I did the trial deposits with Marcus, they made 2 deposits, but have not made any withdrawals yet, and it has already been more than a week.

Did you experience the same thing where Marcus did not withdrawal the 2 trial deposits?

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Re: Best CD rates thread

Post by MikeG62 » Mon Oct 21, 2019 2:53 pm

Ricchan wrote:
Mon Oct 21, 2019 2:26 pm
MikeG62 wrote:
Mon Oct 21, 2019 8:13 am
Same experience for me. Trial deposits showed up the next day.

In process of doing the same thing with Marcus. However, trial deposits did not show up Friday (which was the next business day). I’ll check today when I get back in town. Someone else posted that it took two days with Marcus.

Edit - Just checked and my trial deposits between Marcus and PSECU posted today (two business days). That account is now linked as well.
Hi Mike, I believe that person might have been me. :) I have a quick question, if you don't mind.

- When I did the trial deposits with Ally, they made 2 deposits and 1 withdrawal on the same day.
- When I did the trial deposits with Marcus, they made 2 deposits, but have not made any withdrawals yet, and it has already been more than a week.

Did you experience the same thing where Marcus did not withdrawal the 2 trial deposits?
Yes exact same experience you have had. My Marcus link was only set up today so I thought maybe they would take it out later. Now that I think about it, when I linked my Marcus account to my Fidelity account they never withdrew the trial deposits. Thought it was strange, then forgot about it.
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Re: Best CD rates thread

Post by Scooter57 » Mon Oct 21, 2019 2:56 pm

Kevin,

Thanks for the detailed reply! I live in a region that very rarely qualifies for high rate offers. Depositaccounts.com only shows me national offers, and did not display the PSECU offer to me. So I would have missed this one had it not come up in this discussion. I hope people will continue to flag this kind of deal here going forward.

I still have my share of those 2.25% long CDs, none of which would earn more if I broke them. They are paying more than the Prime Money Market now, which is some consolation.

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Re: Best CD rates thread

Post by Ricchan » Mon Oct 21, 2019 4:08 pm

MikeG62 wrote:
Mon Oct 21, 2019 2:53 pm
Ricchan wrote:
Mon Oct 21, 2019 2:26 pm
MikeG62 wrote:
Mon Oct 21, 2019 8:13 am
Same experience for me. Trial deposits showed up the next day.

In process of doing the same thing with Marcus. However, trial deposits did not show up Friday (which was the next business day). I’ll check today when I get back in town. Someone else posted that it took two days with Marcus.

Edit - Just checked and my trial deposits between Marcus and PSECU posted today (two business days). That account is now linked as well.
Hi Mike, I believe that person might have been me. :) I have a quick question, if you don't mind.

- When I did the trial deposits with Ally, they made 2 deposits and 1 withdrawal on the same day.
- When I did the trial deposits with Marcus, they made 2 deposits, but have not made any withdrawals yet, and it has already been more than a week.

Did you experience the same thing where Marcus did not withdrawal the 2 trial deposits?
Yes exact same experience you have had. My Marcus link was only set up today so I thought maybe they would take it out later. Now that I think about it, when I linked my Marcus account to my Fidelity account they never withdrew the trial deposits. Thought it was strange, then forgot about it.
Thanks for the reply. I've been trying to plan out my deposits and withdrawals to fall within the 6 monthly withdrawal limit. I didn't factor in the automatic withdrawal for the Pennsylvania Recreation and Park Society membership, but I also didn't factor in Marcus not withdrawing their trial deposits. So I guess it all works out in the end.

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Re: Best CD rates thread

Post by Kevin M » Mon Oct 21, 2019 6:10 pm

Scooter57 wrote:
Mon Oct 21, 2019 2:56 pm
Kevin,

Thanks for the detailed reply! I live in a region that very rarely qualifies for high rate offers. Depositaccounts.com only shows me national offers, and did not display the PSECU offer to me. So I would have missed this one had it not come up in this discussion. I hope people will continue to flag this kind of deal here going forward.
As I posted, you need to change the state to "Any" using the " Modify or Expand Region ▼" link; click "Select your state", then scroll to the end of the drop-down box and select "Any". Then you'll see the PSECU CDs, and the other ones that don't show up for your region or as nationwide.

What we have discovered here is that some of the deals that don't show up as nationwide actually are available to anyone by joining some organization, as is the case for PSECU. So to be diligent, you need to select "Any", then investigate each credit union with a top rate to see if there is a way for you to join. You might have to drill down a bit to find this info, perhaps even reading the DA blog post about a particular CU or deal.

Kevin
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Re: Best CD rates thread

Post by HomeStretch » Mon Oct 21, 2019 6:22 pm

Ricchan wrote:
Mon Oct 21, 2019 2:26 pm
Did you experience the same thing where Marcus did not withdrawal the 2 trial deposits?
Marcus never withdrew the trial deposits when I linked two accounts this summer.

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Re: Best CD rates thread

Post by Kevin M » Mon Oct 21, 2019 6:42 pm

indexfundfan wrote:
Sun Oct 20, 2019 7:46 pm
Kevin M wrote:
Sun Oct 20, 2019 7:33 pm
indexfundfan wrote:
Sun Oct 20, 2019 7:23 pm
Very good question. Here's my experience. After my checking account was approved, I sent a wire to PSECU using the member number (which is the same as savings) and in the additional instructions, I specify "credit to checking". The wire was successfully credited to checking.

After that, I used the member number with account type = checking for ACH linking. It worked.

But later on, when I received the PSECU check book, I realized the account number on the check book is actually different from the member number. I tried the new account number for ACH linking. It also worked.

For consistency, I am now just using the account number on the check book, and I have removed the others.
Thanks for this detailed explanation. Do you see the number on the account number on the checks anywhere online? Is it related at all to the member number?
The checking account number is completely different from the member number.

I just checked. I cannot find the checking account number anywhere on the website (I tried the usual places but it could be hidden in some place I didn't check). The checking account number also did not appear in the statement.
We got my wife set up at PSECU today, with a checking account. We called to ask what the checking account number is, and the rep wouldn't tell us over the phone. Said they could only FAX it or mail it, and since we don't have FAX, they're mailing it. So doesn't do us any good for the initial deposit, which will be wired into her share account tomorrow--the wire instructions don't specify savings or checking, just the account number (member number).

Since she qualified through my membership, there will be no $20 withdrawal to join the parks and recreation organization, and she's just doing one 3-year CD, so only one withdrawal to fund that. Then maybe one more withdrawal in setting up PSECU as an external credit union at one of her banks or brokerages, if she decides to do the monthly add-on deposits. So shouldn't be any issues running up against the six per month withdrawal limit.

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Re: Best CD rates thread

Post by Ricchan » Mon Oct 21, 2019 7:00 pm

HomeStretch wrote:
Mon Oct 21, 2019 6:22 pm
Ricchan wrote:
Mon Oct 21, 2019 2:26 pm
Did you experience the same thing where Marcus did not withdrawal the 2 trial deposits?
Marcus never withdrew the trial deposits when I linked two accounts this summer.
Thanks for the additional data point!
Last edited by Ricchan on Mon Oct 21, 2019 7:06 pm, edited 2 times in total.

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Re: Best CD rates thread

Post by MikeG62 » Mon Oct 21, 2019 7:05 pm

Kevin M wrote:
Mon Oct 21, 2019 6:42 pm

...So shouldn't be any issues running up against the six per month withdrawal limit.
Maybe I am missing something, but there does not appear to be any limitation on the number of monthly withdrawals on their regular share account (the limit of six applies only to their money market savings).

Are you reading it differently or have you opened a MM Share Savings?

Edit - comment withdrawn. See below.
Last edited by MikeG62 on Tue Oct 22, 2019 8:14 am, edited 1 time in total.
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808
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Re: Best CD rates thread

Post by 808 » Mon Oct 21, 2019 9:00 pm

It's in the disclosure. If you start at https://www.psecu.com/privacy-policies-disclosures and click the Agreements & Disclosures link, in that PDF:
Section 10 TRUTH IN SAVINGS ACCOUNT DISCLOSURES
1. REGULAR, ADDITIONAL AND IRA SHARES::
Transaction Limitations

which is basically the same for:
3. MONEY MARKET:
Transaction Limitations

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Re: Best CD rates thread

Post by MikeG62 » Tue Oct 22, 2019 8:13 am

808 wrote:
Mon Oct 21, 2019 9:00 pm
It's in the disclosure. If you start at https://www.psecu.com/privacy-policies-disclosures and click the Agreements & Disclosures link, in that PDF:
Section 10 TRUTH IN SAVINGS ACCOUNT DISCLOSURES
1. REGULAR, ADDITIONAL AND IRA SHARES::
Transaction Limitations

which is basically the same for:
3. MONEY MARKET:
Transaction Limitations
Interesting. I was relying on their web site (under banking and savings accounts) which talks to the six-withdrawal limit under the Money Market Savings Share, but not the Regular Savings Share (this is true even of footnote 3).

Having said that, I have now read Reg D and see that the six-transaction limit applies to all interest-bearing savings accounts. It's not optional at the bank or CU's discretion to apply to one type of savings (MM for example) and not others. So, I stand corrected. Thanks for pointing that out.

I called PSECU a few minutes ago to discuss each withdrawal from my regular share account to see if each one counted toward the limit of six (as there are some types of transactions that don't count within the six). She confirmed that the transfers I made to the two CD's I opened earlier this month count, as does the $20 withdrawal for the parks and rec membership fee, as well as the withdrawal of the trial deposit by Ally. That puts me at four right now. In addition, the auto transfers (add-on's) into those CD's scheduled for the end of this week will also count. That will put me at six. I also linked my Marcus account yesterday. However, the two trial deposits have not been withdrawn. To the extent they are, that would put me at seven. I asked if that happens, will my auto transfers into the CD scheduled for later this week fail. I was told no they would not. She said the only time I would be contacted about being over six withdrawals would be if I were a habitual offender. A one-off violation would not result in a failed transfer or closure of the account. FWIW, I have her name and teller # for my records (she was a supervisor as the first person I spoke to was not sure of the answer to my questions).
Last edited by MikeG62 on Tue Oct 22, 2019 9:58 am, edited 1 time in total.
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Re: Best CD rates thread

Post by Chesterfield » Tue Oct 22, 2019 9:39 am

Hey Mike,
very easy to open a checking account (right online and immediate) and then call to change yr auto add on to be withdrawn from checking account.

Also, my observation is this: Once you have a checking account, it seems all ACH and wires go into there. when I set up wire or ACH and 3 times all went into my checking accounts and I used my membership number as my “account” numbers. Not sure why.

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Re: Best CD rates thread

Post by MikeG62 » Tue Oct 22, 2019 10:06 am

Chesterfield wrote:
Tue Oct 22, 2019 9:39 am
Hey Mike,
very easy to open a checking account (right online and immediate) and then call to change yr auto add on to be withdrawn from checking account.
Thanks that’s good to know. Not sure I need to add the checking as I don’t plan to do much with PSECU other than hold these CD’s with one transfer into each one monthly. The checking won’t help this month as I wired the funds to cover the auto transfer later this week this morning after speaking to the rep and being assured I’d be ok even if I went over the six threshold. I also don’t think Marcus sweeps trial deposits back out anyway. They did not when i linked my Marcus account to my Fidelity account this summer. One other poster said no debit with his trial deposits at PSECU and none as of yet with my trial deposits yesterday. However, I’ll keep it in mind.

Chesterfield wrote:
Tue Oct 22, 2019 9:39 am

Also, my observation is this: Once you have a checking account, it seems all ACH and wires go into there. when I set up wire or ACH and 3 times all went into my checking accounts and I used my membership number as my “account” numbers. Not sure why.
Interesting... I guess their default is to the checking - maybe to try and avoid the six WD issue?
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Re: Best CD rates thread

Post by international001 » Tue Oct 22, 2019 1:43 pm

I my case the application was a pain

Yesterday I apply , but after a while it didn't allow me to login (via email link request). Today it alowed me to login, and asked me to upload Driver License. I am told process is reviewed manually, so I should wait a few more days.

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Re: Best CD rates thread

Post by TLB » Tue Oct 22, 2019 2:24 pm

I finally got it right, last week when I applied for the new account, I didn't upload the PRPS correctly so after a phone call yesterday I had to reapply.
Called this morning to confirm everything was good they said yes and they will email me instructions to continue. After signature form signed, got my account number, pin number and routing number to fun my PSECU checking account. I called Vanguard to wire the money to my account and it funded in less than 3 hours.Went back to PSECU web site and bought a 36 month CD. Now I'm setting up a monthly transfer from my bank, hopefully done in 2 days.

I probably called them 5 times to make sure I wasn't screwing things up (which I do a lot) each person I talked to was super polite with my questions.

Thank you BH's for the heads up on these CD's.

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Re: Best CD rates thread

Post by indexfundfan » Tue Oct 22, 2019 2:27 pm

TLB wrote:
Tue Oct 22, 2019 2:24 pm
I finally got it right, last week when I applied for the new account, I didn't upload the PRPS correctly so after a phone call yesterday I had to reapply.
Called this morning to confirm everything was good they said yes and they will email me instructions to continue. After signature form signed, got my account number, pin number and routing number to fun my PSECU checking account. I called Vanguard to wire the money to my account and it funded in less than 3 hours.Went back to PSECU web site and bought a 36 month CD. Now I'm setting up a monthly transfer from my bank, hopefully done in 2 days.

I probably called them 5 times to make sure I wasn't screwing things up (which I do a lot) each person I talked to was super polite with my questions.

Thank you BH's for the heads up on these CD's.
Nice to hear that you are all set.

I have a question -- what is the process to wire money from Vanguard? Do you need to submit a form with medallion signature to Vanguard? Or can it all be done with just one phone call?
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Re: Best CD rates thread

Post by Tarkus » Tue Oct 22, 2019 2:52 pm

My experience setting up an account has also been sort of a pain. I applied on Friday, uploaded a PDF of my driver license. Didn't hear anything so I called yesterday. A woman told me that she would approve the application and I'd have an email by the end of the day.

Today I didn't get the email, so I called again this morning. The application was routed to a manager, and I heard that I needed to provide a proof of address. I uploaded those documents (a utility bill and an auto insurance card) immediately. Waited all afternoon and just called them again.

The agent now says everything looks good, and I should get an email later today with the next steps in the process.

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Re: Best CD rates thread

Post by Scooter57 » Tue Oct 22, 2019 3:01 pm

I simply called Vanguard and, after passing the voice verification, told the automated system "Wire" when it asked what I wanted. I was transferred to the wire department. I gave them the PSECU account info, the amount, the accout to draw from, validated my request when it was read back to me, and they sent it.that day.

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Re: Best CD rates thread

Post by indexfundfan » Tue Oct 22, 2019 3:10 pm

Scooter57 wrote:
Tue Oct 22, 2019 3:01 pm
I simply called Vanguard and, after passing the voice verification, told the automated system "Wire" when it asked what I wanted. I was transferred to the wire department. I gave them the PSECU account info, the amount, the accout to draw from, validated my request when it was read back to me, and they sent it.that day.
Thanks! I have always thought a medallion stamp was needed with Vanguard. This would make funding any future CDs much easier.
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Re: Best CD rates thread

Post by Kevin M » Tue Oct 22, 2019 3:25 pm

Some more PSECU data points.

Submitted application for wife's account Sunday, account opened Monday (yesterday), provided wire instructions to local bank yesterday afternoon, wired funds arrived today, bought 36-month CD online. Phone calls at each step to ensure things were moving along, and the phone calls seemed to make a difference.

For example, funds hadn't left the local bank account by 11:30 am PT, even though we gave them the instructions yesterday, so called local bank. Funds still hadn't left by 12:15pm, so called again (PSECU told me wire cutoff is 4pm ET, so 1pm PT). Wire finally went out, but hadn't shown up in PSECU account by 12:45pm PT, so called PSECU wire department (extension 3868), and they had it posted to the account before we hung up.

Since she opened a checking account when she submitted her application, the wired funds went into the checking account, as others have observed. There was no instruction as to what type of account on the wire instructions.

On my IRA transfer, I faxed the transfer form to PSECU on Friday at about 1:15 PM PT, with instructions to FAX to Vanguard, and when I logged into Vanguard Monday morning, the money had already been withdrawn from my account. Since both Vanguard and PSECU are in Pennsylvania, I assume the check will get to PSECU this week.

Regarding the six per month limit on withdrawals, I used up two to buy the CD, one for the $20 to the organization, and two for overdraft charges (both of which were reversed), so I'm at five. I don't think I'll need to do any more withdrawals this cycle, as my monthly additions are set for mid-November.

I think I may have shared this already, but the overdrafts were because they didn't do the $20 withdrawal initially, so I put the extra in my share account into one of the CDs, and when they pulled the $20, my balance went negative. I linked PSECU from Vanguard, but VG won't allow ACH to new external banks for 7-10 days.

I tried to open a checking account, thinking I could quickly link it to Ally and transfer some money in, but it wasn't opened. I called, and was told that the checking account couldn't be opened if the share account had a negative balance. While on hold with the PSECU rep, it dawned on my that I could wire from Fidelity, so I wired in $100 (the minimum) from Fidelity, and that got my balance back into the black before the phone call ended.

The second overdraft charge ($30) apparently was triggered by Vanguard withdrawing the trial deposits. A rep told me that, but I don't see that withdrawal in my transaction history.

Now that my share balance is positive, I was able to open a checking account online instantly.

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Re: Best CD rates thread

Post by TLB » Tue Oct 22, 2019 3:51 pm

indexfundfan wrote:
Tue Oct 22, 2019 2:27 pm
TLB wrote:
Tue Oct 22, 2019 2:24 pm
I finally got it right, last week when I applied for the new account, I didn't upload the PRPS correctly so after a phone call yesterday I had to reapply.
Called this morning to confirm everything was good they said yes and they will email me instructions to continue. After signature form signed, got my account number, pin number and routing number to fun my PSECU checking account. I called Vanguard to wire the money to my account and it funded in less than 3 hours.Went back to PSECU web site and bought a 36 month CD. Now I'm setting up a monthly transfer from my bank, hopefully done in 2 days.

I probably called them 5 times to make sure I wasn't screwing things up (which I do a lot) each person I talked to was super polite with my questions.

Thank you BH's for the heads up on these CD's.
Nice to hear that you are all set.

I have a question -- what is the process to wire money from Vanguard? Do you need to submit a form with medallion signature to Vanguard? Or can it all be done with just one phone call?
Just called in to my Vanguard rep and asked her to do it for me. Done, that was the easiest process of this transaction.

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Re: Best CD rates thread

Post by SlowMovingInvestor » Tue Oct 22, 2019 4:54 pm

Kevin M wrote:
Tue Oct 22, 2019 3:25 pm

Submitted application for wife's account Sunday, account opened Monday (yesterday),
I submitted application on Sunday, called twice yesterday, and was told it would take 24-48 hrs for a manual review. So far, nothing :(

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Re: Best CD rates thread

Post by Tarkus » Tue Oct 22, 2019 6:16 pm

SlowMovingInvestor wrote:
Tue Oct 22, 2019 4:54 pm
Kevin M wrote:
Tue Oct 22, 2019 3:25 pm

Submitted application for wife's account Sunday, account opened Monday (yesterday),
I submitted application on Sunday, called twice yesterday, and was told it would take 24-48 hrs for a manual review. So far, nothing :(
I just got my account finalized. I'm ready to link it to Ally.

Maybe they see that you are a SlowMovingInvestor, and they figure you can wait...

Seriously, though, their print advertising indicates the offer should be around until Nov 1, so we can afford to wait this week. Next week would be a different story!

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Re: Best CD rates thread

Post by Kevin M » Tue Oct 22, 2019 6:30 pm

Tarkus wrote:
Tue Oct 22, 2019 6:16 pm
SlowMovingInvestor wrote:
Tue Oct 22, 2019 4:54 pm
Kevin M wrote:
Tue Oct 22, 2019 3:25 pm
Submitted application for wife's account Sunday, account opened Monday (yesterday),
I submitted application on Sunday, called twice yesterday, and was told it would take 24-48 hrs for a manual review. So far, nothing :(
I just got my account finalized. I'm ready to link it to Ally.

Maybe they see that you are a SlowMovingInvestor, and they figure you can wait...
Haha! Same thought occurred to me.

SlowMoving, did you submit the application online? Are your Experian and ChexSystems not frozen? Any potential issues with credit score? If submitted online, did you hit any glitches in the process, like problems with the security questions?

When we (wife and I) called in at this point, we asked something like, "Is there anything else I can provide to facilitate getting the account opened?" I usually phrased my inquiries something like that, mentioning that I wanted to get the CD opened as soon as possible. I usually got the feeling that calling helped expedite things; more than once the rep would say something like, "since you called, I'll make sure that gets done right away", or, "I'll check with the agent working on that". Reps were always friendly, always helpful.
Seriously, though, their print advertising indicates the offer should be around until Nov 1, so we can afford to wait this week. Next week would be a different story!
Agreed.

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Re: Best CD rates thread

Post by international001 » Wed Oct 23, 2019 11:02 am

Some Qs:

- The Nov 1st deadline, is for when you apply to the CD or when you fund it (imagine you use ACH)?
- Do CDs allow partial early withdrawal? (with proportional EW penalty)
- What is considered a best option? 36, 60 months?

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Re: Best CD rates thread

Post by Scooter57 » Wed Oct 23, 2019 11:10 am

international001 wrote:
Wed Oct 23, 2019 11:02 am
Some Qs:

- The Nov 1st deadline, is for when you apply to the CD or when you fund it (imagine you use ACH)?
- Do CDs allow partial early withdrawal? (with proportional EW penalty)
- What is considered a best option? 36, 60 months?
1. I was told by the rep the first time I called PSECU that they don't freeze rates when you apply. So if the rate changes on Nov 1, and your application hasn't finished processing, you won't get the rate.

2. I was told they do allow partial early withdrawals.

3. I have been tormenting myself with this question. After checking out all the other alternatives open to me for 5 year CDs I find that PSECU 3% five year CD to be the best rate available to me, and am thinking I will put most of the rest of my CD money into the 3 year but buy some of the 5 year, too, so that I am not kicking myself when rates plunge again. I was very happy with the 3% 5 year CDs I bought back in 2014.

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Re: Best CD rates thread

Post by Ricchan » Wed Oct 23, 2019 12:09 pm

international001 wrote:
Wed Oct 23, 2019 11:02 am
- Do CDs allow partial early withdrawal? (with proportional EW penalty)
Their account disclosure seems to indicate they do.

From https://www.psecu.com/-/media/files/pdf ... n/2104.pdf (emphasis mine)
Early Withdrawal Penalties - We impose a penalty if you withdraw any of the principal before the maturity of the certificate. For 3-24
month certificates, any early withdrawal will cause a forfeiture of 90 days worth of dividends on the principal amount withdrawn,
whether or not the certificate has earned an initial dividend. For 36-60 month certificates, any early withdrawal will cause a forfeiture
of 180 days worth of dividends on the principal amount withdrawn, whether or not the certificate has earned an initial dividend. The
early withdrawal penalty will be calculated at the annual dividend rate being paid on the certificate.

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Re: Best CD rates thread

Post by MikeG62 » Wed Oct 23, 2019 12:42 pm

Just called the Certificates department with a question and was told (by Patty) that the promotional CD rates (3.0% on 24-months and 3.25% on 36-months) have been extended to November 30th.

It's amazing that in this rate environment this offer would be extended. Guess they are anxious to bring in more funds.
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Re: Best CD rates thread

Post by RCL » Wed Oct 23, 2019 1:49 pm

MikeG62 wrote:
Wed Oct 23, 2019 12:42 pm
Just called the Certificates department with a question and was told (by Patty) that the promotional CD rates (3.0% on 24-months and 3.25% on 36-months) have been extended to November 30th.

It's amazing that in this rate environment this offer would be extended. Guess they are anxious to bring in more funds.
Good to know, thanks for the update.
As stated many times up-thread, I found the Reps were always friendly and helpful
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Re: Best CD rates thread

Post by Kevin M » Wed Oct 23, 2019 3:33 pm

international001 wrote:
Wed Oct 23, 2019 11:02 am
- What is considered a best option? 36, 60 months?
I like the 36-month, but putting some into the 5-year reduces your reinvestment risk. So it really depends on how you want to balance price risk with reinvestment risk, these being the two main aspects of term risk.

The early withdrawal option limits downside price risk to the early withdrawal penalty (EWP), so about 1.68% on the 3-year at 3.25%, and 1.5% on the 5-year at 3.00%. With a direct CD, there is no upside price potential for taking on term risk.

Of course the reinvestment risk of the 3-year is that in three years you won't be able to find anything earning 3.0%, so your 5-year return could end up lower than 3.00%.

I'd also consider what I have in other fixed income with various maturities.

On a related note, I split my $300K so far between the 2-year and 3-year, but like MikeG62 (I think), I wish I had put it all in the 3-year, especially since I have a very large amount in other CDs maturing in about 27 months. We put it all in the 3-year for my wife. I'm putting $227K into a 3-year IRA CD as soon as the check from Vanguard arrives.

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Re: Best CD rates thread

Post by indexfundfan » Wed Oct 23, 2019 3:49 pm

Here's a page comparing early withdrawals.

https://www.depositaccounts.com/tools/e ... ties=3,6,6

If you withdraw the 5yr CD after only 3 years, the yield drops to 2.53%.
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Re: Best CD rates thread

Post by MikeG62 » Wed Oct 23, 2019 5:05 pm

Kevin M wrote:
Wed Oct 23, 2019 3:33 pm

...On a related note, I split my $300K so far between the 2-year and 3-year, but like MikeG62 (I think), I wish I had put it all in the 3-year, especially since I have a very large amount in other CDs maturing in about 27 months. We put it all in the 3-year for my wife. I'm putting $227K into a 3-year IRA CD as soon as the check from Vanguard arrives.

Kevin
Nah, I did not go all in on the 36-month CD. When I opened the two CD’s, I split my initial contribution of $75K equally between the two. My first auto transfer happens this Friday with $45K going into each CD. My plan at this point is to have the same auto transfer happen for the Nov 25th* contribution. Then I think I will dial down the auto transfer on the 24-month CD beginning with the December transfer. I expect to end up with $500K between the two CD’s, once all future auto-transfers are complete (which should be by mid-2020), split roughly 70%/30% between the 36-month and 24-month CD’s. Why did I not put 100% into the 36-month CD? I guess because who knows what interest rates are going to be 24-months from now. While I think rates will either be lower than, or at best in the range of, current rates, I could be wrong and rates could be higher. So I guess I am hedging a bit on that uncertainty. Ideally, I’d rather have these funds in muni bonds, but for the fact that muni’s are ridiculously overbought (have been for a year now) and current rates are simply unattractive (most certainly compared to the rates on these PSECU CD’s). Maybe 24-months from now that situation has changed and having some funds free up at that time may not be such a bad thing.

Edited on 10/24/19 to add:

* Thinking a bit more on this last night and this morning. Given the extension of these promotional rates through Nov 30th, I might stop the auto-transfers before Nov 25th and instead open either one 36-month CD or both a 36-month and 24-month CD by Nov 29th instead (with auto transfers added within 30 days of 11/29). Because I opened my first two CD's in early October, this would effectively extend the term of these rates by nearly two months for me. :idea:
Last edited by MikeG62 on Thu Oct 24, 2019 8:04 am, edited 2 times in total.
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Re: Best CD rates thread

Post by mpnret » Wed Oct 23, 2019 5:44 pm

MikeG62 wrote:
Fri Oct 18, 2019 6:49 am
To your specific question, the answer depends on when in January that CD matures. Here's one option. Set up the $50K transfer for the latest possible date. So, let's assume you initially funded the CD on Oct 15th. You can call PSECU as late at Nov 14th to add the "auto transfer" feature and set that transfer to begin as late as 30 days from that time - or Dec 14th. Your Marcus $50K will get in the CD at that time and the monthly transfer after that will be January 14th. Does that get you far enough into January for the $100K CD to have matured? If so, invest that $100K over the ensuing two months in the CD ($50K on Jan 14th and $50K on Feb 14th). If not, do you have access to $50K from another source you can use temporarily to meet the January call until the CD matures?
Did anyone confirm it works this way? If you set up auto transfer when you open the CD it must begin within 30 days. If you don't set it up at opening you have to call within that 30 days to set it up. Will they really give you another 30 days from call date or is it still 30 days from opening date.

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