Best CD rates thread

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2Birds1Stone
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Re: Best CD rates thread

Post by 2Birds1Stone » Mon Oct 14, 2019 6:57 pm

Thank you for sharing this. I just created my PSECU account and hope to dump $25k from Ally in there before the deadline this weekend.

Hope the account gets verified/approved quickly.

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Kevin M
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Re: Best CD rates thread

Post by Kevin M » Mon Oct 14, 2019 7:50 pm

Ricchan wrote:
Mon Oct 14, 2019 10:48 am
Kevin M wrote:
Sun Oct 13, 2019 8:46 pm
From the posts here, it sounds like you can't just provide PSECU with routing and account number of an external bank to fund the CD.
I noticed there was no option to link an external bank account to my newly opened PSECU account on the PSECU website. I called PSECU and they said linking external accounts is not immediately available for new accounts. They also mentioned the maximum limit for transfers from external banks is $1,500 per day and $6,000 per month.
Low ACH limits are typical for credit unions, but sometimes you can fund a CD directly at some credit unions from an external bank with much more than their ACH limits. As I recall, I did this at PenFed.

Unfreezing my Experian account and completing the application was easy--less than 30 minutes, much of that time spent searching for my scanned driver license. Tomorrow I'll call my bank with the large savings account and ask if I can wire a large amount directly to the credit union. Their ACH limit is kind of low--something like $25K, but I'm guessing I can do more with a wire.

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stlutz
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Re: Best CD rates thread

Post by stlutz » Mon Oct 14, 2019 10:43 pm

What are 3 to 5 banks and credit unions that consistently offer high CD rates and allow to move money among them relatively easily?
One other criteria for me is that the CDs don't auto renew. Right now Ally and Alliant are the only ones I'm aware of that have this option.

Life gets busy--when a CD matures I just want the money to end up in my checking or savings account. I'll decide on my own timeline what to do with it then.

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Re: Best CD rates thread

Post by 2Birds1Stone » Tue Oct 15, 2019 2:33 am

Capitalone CDs can be set not to auto renew.

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indexfundfan
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Re: Best CD rates thread

Post by indexfundfan » Tue Oct 15, 2019 6:41 am

stlutz wrote:
Mon Oct 14, 2019 10:43 pm
What are 3 to 5 banks and credit unions that consistently offer high CD rates and allow to move money among them relatively easily?
One other criteria for me is that the CDs don't auto renew. Right now Ally and Alliant are the only ones I'm aware of that have this option.

Life gets busy--when a CD matures I just want the money to end up in my checking or savings account. I'll decide on my own timeline what to do with it then.
The recent CDs I opened, at AgFed and PSECU, all allow you to specify whether to auto-renew or not.
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Re: Best CD rates thread

Post by stlutz » Tue Oct 15, 2019 11:27 am

indexfundfan wrote:
Tue Oct 15, 2019 6:41 am
stlutz wrote:
Mon Oct 14, 2019 10:43 pm
What are 3 to 5 banks and credit unions that consistently offer high CD rates and allow to move money among them relatively easily?
One other criteria for me is that the CDs don't auto renew. Right now Ally and Alliant are the only ones I'm aware of that have this option.

Life gets busy--when a CD matures I just want the money to end up in my checking or savings account. I'll decide on my own timeline what to do with it then.
The recent CDs I opened, at AgFed and PSECU, all allow you to specify whether to auto-renew or not.
That's great--thanks! I hope I didn't jack the thread but am definitely interested in hearing of others if people have them.

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Re: Best CD rates thread

Post by Scooter57 » Tue Oct 15, 2019 11:36 am

PenFed and NASA FCU also allow you to set a CD not to auto renew online.

But the rest of them, all you have to do is send an e-message to them a few weeks before the CD matures instructing them to move the proceeds into your Share account. Put an entry on your calendar and that's that.

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Re: Best CD rates thread

Post by Kevin M » Tue Oct 15, 2019 3:47 pm

indexfundfan wrote:
Wed Oct 09, 2019 2:23 pm
Chesterfield wrote:
Wed Oct 09, 2019 2:15 pm
You need to submit the transfer from your bank's website, and hope that your bank supports next-day ACH.
What bank is good that you rec'd for excellent ACH services and rates? Maybe I'll sign up and use that as my hub instead? The current one I have (Northern) offers 1 day ACH to Fidelity/Vanguard if same day request by 2/4P I cannot recall, but I can only link THREE (3) external accounts. Looking for reliably high & competitive rates and can have more than 3 external links. Thanks.
I have been searching for one too, but did not find a perfect bank.

Alliant comes pretty close, next-day ACH but has $25k outgoing limit. Incoming pulls I think are available immediately.
Amex savings has next-day ACH and very high ACH limits but holds incoming funds for 5 days I believe.

I wanted to use Fidelity as a hub but they locked my account when I sent two wires out last month. So I am kind of back to the drawing board.

Maybe others can chime in?
Ally is a good hub bank, in that they provide all the products and services you'd want in an online bank. Rates are OK, but not the best.
  • ACH limits are so high I've never run into them.
  • Ditto for the number of external banks you can set up.
  • Some ACH transfers are next business day, some are 2nd business day.
  • Savings account rates are decent, but not the highest.
  • CD rates are OK, but not competitive enough that I've bought any CDs at Ally in years, other than an occasional no-penalty CD.
  • If you do buy CDs, you can manage them online in taxable accounts. This includes changing what happens at maturity, changing what happens with interest, and doing early withdrawals.
  • As far as I know, they don't put a hold on new money transferred in.
  • You can quickly open new accounts online with $0 minimum (but I think you must put something into the account within something like 60 days to keep it open).
  • They have both checking and savings accounts.
I used to pay bills from Ally, but I've switched over most bill payments to Fidelity, since you earn more in a Fidelity money market fund than in Ally checking (0.1%, or 0.6% if $15K or more in account). However, the Fidelity MM yields aren't quite as high as Ally savings, currently at 1.80%, unless you get into FZDXX with an initial investment of $100K; FZDXX compound yield today is 1.83%. There's a long thread on Fidelity as a one-stop shop, in which lots of people post about their experience using Fidelity for most if not all of their banking needs, as well as for investments.

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VictoriaF
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Re: Best CD rates thread

Post by VictoriaF » Tue Oct 15, 2019 4:04 pm

Scooter57 wrote:
Mon Oct 14, 2019 3:44 pm
Victoria,

There doesn't ever seem to be a bank or CU that consistently offers the best rates.
...
I check out the institutions I invest with through depositaccounts.com and track their financial health ratings when they update them every quarter. The worst ratings I have seen were for the brick and mortar Credit Unions in towns near where I live where I had invested for decades before discovering the online CDs.

I also read the comments on depostiaccounts.com to get a feeling for how a CU's customer service performs. I have avoided a couple of higher rate CD offers over the years because I read too many comments that made me uncomfortable about dealing with the small CUs that offered them. I also phone and ask customer service staff questions before I invest, to get a feeling for how helpful they might be and how easy to reach.
Thank you Scooter57,

I, too, check Deposit Accounts when my CDs are approaching maturity, but most of the time I favor financial organizations with which I already have an account.

An advantage of local banks and credit unions is that if they have low ACH limits, I can drive there and get a cashier's check. I will check out NASA FCU.

Victoria
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Re: Best CD rates thread

Post by VictoriaF » Tue Oct 15, 2019 4:09 pm

UpperNwGuy wrote:
Mon Oct 14, 2019 4:13 pm
The rest of my savings are in Vanguard's Prime Money Market Fund.
VMMXX 7-day SEC yield is 1.96%, better than my savings account at Ally. Thank you for reminding me about Vanguard as a legitimate parking for cash.

Victoria
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Re: Best CD rates thread

Post by Kevin M » Tue Oct 15, 2019 4:13 pm

VictoriaF wrote:
Mon Oct 14, 2019 3:03 pm
As the title of this thread is "Best CD rates", I'd like to re-define "best" as "optimal combination" -- and pose a question as follows:

What are 3 to 5 banks and credit unions that consistently offer high CD rates and allow to move money among them relatively easily?

I am quite pleased with:
1) Navy Fed
2) Ally

3) PenFed used to offer great CD rates, but not recently.
4) Andrews Federal Credit Union has OK rates but dealing with them is a bit awkward.

What would be a single other financial institution to get an account at solely for the sake of consistently good CD rates and ease of dealing with?

Victoria
I wouldn't call Ally CD rates "high". Note that we are discussing 2y at 3% and 3y at 3.25%, while Ally 3y is 2.25% (min $25K), and even the 5y is only 2.30%). Ally rates haven't been top-tier in some years.

Having joined quite a few banks and credit unions over the years, I can only say that a few have had good CD deals more than once since I've been a member:
  • Patelco: 7y @ 2.50% Jul/Aug 2012; 5y @2.50% Mar 2016; 3y flex @3.00% year 1, 3.50% year 2, 4.00% year 3 with penalty-free withdrawals on each anniversary date, Jan 2019 (my wife and I both loaded up on this one in taxable accounts).
  • Achieva FCU: 2.71% Oct 2010, 4.20% May 2018, both 5y.
  • Inova: 6y @ 2.50% Mar 2012, 2.5y @ 2.55% Mar 2018.
  • Mountain America (MACU): 5y @2.00% May 2013, 5y add-on (max $100K) @ 3.51% Feb 2019.
PenFed would be in the list, but the last CD I bought there was in 2014; rates have not been very competitive since then.

Also, I did roll a matured 5y at Synchrony bank (2.30% Jun 2014) into a 1y at 2.60%, mainly because it is in an IRA, and that was a decent 1y rate in an IRA at the time.

So, if you are a member of enough banks or credit unions, odds are that one of them will offer a decent CD deal periodically.

In terms of moving money between them easily, most credit unions have very low ACH limits, so chances are you'd have to move money through a hub bank like Ally to get it from one to the other CU.

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Re: Best CD rates thread

Post by Kevin M » Tue Oct 15, 2019 4:17 pm

VictoriaF wrote:
Tue Oct 15, 2019 4:09 pm
UpperNwGuy wrote:
Mon Oct 14, 2019 4:13 pm
The rest of my savings are in Vanguard's Prime Money Market Fund.
VMMXX 7-day SEC yield is 1.96%, better than my savings account at Ally. Thank you for reminding me about Vanguard as a legitimate parking for cash.

Victoria
Yep. Note that to compare to bank APY you should use the compound yield, not the SEC yield, so 1.98% for VMMXX.

And, if you pay state income tax, be sure to check taxable-equivalent yield (TEY) of the Treasury MM fund (VUSXX, min $50K initial investment) and even Fed MM fund (VMFXX). At my marginal tax rates of 27% Fed and 8% state, VUSXX compound TEY is 2.13% and VMFXX is 2.07%.

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Re: Best CD rates thread

Post by VictoriaF » Tue Oct 15, 2019 4:23 pm

Kevin M wrote:
Tue Oct 15, 2019 4:13 pm
I wouldn't call Ally CD rates "high". Note that we are discussing 2y at 3% and 3y at 3.25%, while Ally 3y is 2.25% (min $25K), and even the 5y is only 2.30%). Ally rates haven't been top-tier in some years.

Having joined quite a few banks and credit unions over the years, I can only say that a few have had good CD deals more than once since I've been a member:
  • Patelco: 7y @ 2.50% Jul/Aug 2012; 5y @2.50% Mar 2016; 3y flex @3.00% year 1, 3.50% year 2, 4.00% year 3 with penalty-free withdrawals on each anniversary date, Jan 2019 (my wife and I both loaded up on this one in taxable accounts).
  • Achieva FCU: 2.71% Oct 2010, 4.20% May 2018, both 5y.
  • Inova: 6y @ 2.50% Mar 2012, 2.5y @ 2.55% Mar 2018.
  • Mountain America (MACU): 5y @2.00% May 2013, 5y add-on (max $100K) @ 3.51% Feb 2019.
PenFed would be in the list, but the last CD I bought there was in 2014; rates have not been very competitive since then.

Also, I did roll a matured 5y at Synchrony bank (2.30% Jun 2014) into a 1y at 2.60%, mainly because it is in an IRA, and that was a decent 1y rate in an IRA at the time.

So, if you are a member of enough banks or credit unions, odds are that one of them will offer a decent CD deal periodically.

In terms of moving money between them easily, most credit unions have very low ACH limits, so chances are you'd have to move money through a hub bank like Ally to get it from one to the other CU.

Kevin
Thank you, Kevin. I will check out CUs and banks on your list.

Victoria
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Re: Best CD rates thread

Post by pyld76 » Tue Oct 15, 2019 4:27 pm

stlutz wrote:
Tue Oct 15, 2019 11:27 am
indexfundfan wrote:
Tue Oct 15, 2019 6:41 am
stlutz wrote:
Mon Oct 14, 2019 10:43 pm
What are 3 to 5 banks and credit unions that consistently offer high CD rates and allow to move money among them relatively easily?
One other criteria for me is that the CDs don't auto renew. Right now Ally and Alliant are the only ones I'm aware of that have this option.

Life gets busy--when a CD matures I just want the money to end up in my checking or savings account. I'll decide on my own timeline what to do with it then.
The recent CDs I opened, at AgFed and PSECU, all allow you to specify whether to auto-renew or not.
That's great--thanks! I hope I didn't jack the thread but am definitely interested in hearing of others if people have them.
AS has been mentioned, PSECU will let you do whatever you want. Auto renew, bounce into your account there. Not sure if they'll cut you a check, as they've been the custodian of my checking account since the 1980s. Never bothered to look.
VictoriaF wrote:
Mon Oct 14, 2019 3:03 pm
As the title of this thread is "Best CD rates", I'd like to re-define "best" as "optimal combination" -- and pose a question as follows:

What are 3 to 5 banks and credit unions that consistently offer high CD rates and allow to move money among them relatively easily?

I am quite pleased with:
1) Navy Fed
2) Ally

3) PenFed used to offer great CD rates, but not recently.
4) Andrews Federal Credit Union has OK rates but dealing with them is a bit awkward.

What would be a single other financial institution to get an account at solely for the sake of consistently good CD rates and ease of dealing with?

Victoria
So, there was a time (years ago), I'd have told you to put PSECU on the list. Their certificate rates used to be competitive with everyone, almost all the time. Then zero rates happened after 2008. And since then (oh, since early 2018 or thereabouts), PSECU has been wholly noncompetitive until this most recent offer.

If someone had a life altering CD deal, I'd probably pay to chase it or hope VG or Fido could get it brokered. As it is, I keep an eye on their rates, the brokered stuffs at Fido and VG, treasury rates, and federal money market funds at VG/Fido. Save PSECU's current deal and some others, it seems to me that the VG money market funds (I happen to use VMFXX) are the best deal going.

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Re: Best CD rates thread

Post by Ricchan » Tue Oct 15, 2019 5:42 pm

Since there have been several questions about PSECU's CD maturity options, I figured I'd just post a screenshot of the options available on their CD creation page to clear things up.

Image

The last option, "Transfer the certificate funds to my shares," is basically transferring the funds to PSECU's equivalent of a savings account, as that's what they're called at credit unions.
Last edited by Ricchan on Tue Oct 15, 2019 11:52 pm, edited 1 time in total.

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Re: Best CD rates thread

Post by Kevin M » Tue Oct 15, 2019 6:45 pm

Kevin M wrote:
Mon Oct 14, 2019 7:50 pm
Unfreezing my Experian account and completing the application was easy--less than 30 minutes, much of that time spent searching for my scanned driver license. Tomorrow I'll call my bank with the large savings account and ask if I can wire a large amount directly to the credit union. Their ACH limit is kind of low--something like $25K, but I'm guessing I can do more with a wire.
Application submitted yesterday (bank holiday), and account is open today. I did what one or two other posters did, and called this morning to check on the status of the application; rep said since I called he'd get it done ASAP. A few minutes later, I had the email to do the next step. I called a few other times to ask about the next step or to ask some questions, and everyone I talked to was extremely pleasant and helpful. Almost no time on hold for any of the calls.

Went to the local B&M bank with the 2.5% savings account, and gave them wire instructions to wire $300K tomorrow morning. The branch is in a grocery store, so we did some shopping while there, making it not just a trip to do the wire.

So, if all goes well tomorrow, the money should arrive at PSECU, and I can buy the CDs without losing even one day of interest. One day of interest on $300K at 2.5% APY (2.47% rate) is $20.30, at 3.0% APY (2.96% rate) it's $24.30, and at 3.25% APY (3.20% rate) it's $26.29, so not losing one or two days of interest in doing ACH transfers is worth the $20 wire fee.

I'm thinking $150K in each of the 2-year and 3-year.

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Re: Best CD rates thread

Post by Kevin M » Tue Oct 15, 2019 6:54 pm

Kevin M wrote:
Sun Oct 13, 2019 8:46 pm
Incidentally, these are great CD deals. With the 2-year Treasury at 1.63% and the 3-year at 1.60%, your yield premium is about 140 basis points on the 2-year CD at 3%, and 165 basis points on the 3-year at 3.25%.
To be fair, Treasuries are exempt from state income tax, so if bought in a taxable account and if subject to state income tax, the taxable-equivalent yield (TEY) is higher than the stated yield. At my marginal tax rates of 27% fed and 8% state, TEY of a 2y Treasury at 1.61% (today's yield) is 1.81%. So lop about 20 basis points of the previously stated yield premiums. Still very good at about 120 bps for the 2y and 145 bps for the 3-year.

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Re: Best CD rates thread

Post by Katietsu » Tue Oct 15, 2019 9:38 pm

It appears that many have successfully joined the PSECU using the option to become a member of the PA Rec and Parks Society. I would just say that if you look within the documents on the website, it states that you must be a PA permanent resident to use that option to become eligible. Maybe, they changed their rules and only some of the website got updated. But that explains why this has been listed as a regional offer elsewhere.

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Re: Best CD rates thread

Post by indexfundfan » Tue Oct 15, 2019 9:41 pm

Katietsu wrote:
Tue Oct 15, 2019 9:38 pm
It appears that many have successfully joined the PSECU using the option to become a member of the PA Rec and Parks Society. I would just say that if you look within the documents on the website, it states that you must be a PA permanent resident to use that option to become eligible. Maybe, they changed their rules and only some of the website got updated. But that explains why this has been listed as a regional offer elsewhere.
Yes, according to reports, this only changed in August.
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Re: Best CD rates thread

Post by hirlaw » Tue Oct 15, 2019 9:57 pm

FYI: For those in the Houston metro area, the Houston Federal Credit Union is running a special providing for 3.00% APY for a 30 month CD (3.12% for deposits over $100k).
https://www.houstonfcu.org/

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Re: Best CD rates thread

Post by Scooter57 » Tue Oct 15, 2019 10:34 pm

VictoriaF wrote:
Tue Oct 15, 2019 4:04 pm

An advantage of local banks and credit unions is that if they have low ACH limits, I can drive there and get a cashier's check. I will check out NASA FCU.
I link all my CUs and banks to Vanguard and then I can pull the money into my Vanguard money market account when the CD matures. That ignores the CU's ACH limits.

Many CUs are part of the Coop Network which let's me deposit a check into my share account at the distant credit union using a teller at a local Credit Union office. Once deposited in person, I call the CU and they open the CD for me.

I didn't hear back about my application at PSECU today so I will try calling tomorrow. Once I get this CD opened I will be set for a while.
Last edited by Scooter57 on Wed Oct 16, 2019 8:44 pm, edited 1 time in total.

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Re: Best CD rates thread

Post by MikeG62 » Wed Oct 16, 2019 5:47 pm

Ricchan wrote:
Mon Oct 14, 2019 10:48 am
Kevin M wrote:
Sun Oct 13, 2019 8:46 pm
From the posts here, it sounds like you can't just provide PSECU with routing and account number of an external bank to fund the CD.
I noticed there was no option to link an external bank account to my newly opened PSECU account on the PSECU website. I called PSECU and they said linking external accounts is not immediately available for new accounts. They also mentioned the maximum limit for transfers from external banks is $1,500 per day and $6,000 per month.

So yes, initiating the ACH from the external bank is probably the best option.
I opened and funded two CD's two weeks ago. Opened share account and funded it and then the CD's all in one day. Funds were same day wired (not ACH) from Fidelity at no cost.

Just completed funding an IRA CD as well today. That took a bit longer, but IRA transfers typically do.

I also added the "auto transfer" feature today to both of the CD's I opened two weeks ago. This is a really neat feature.

Everyone I have spoken with at PSECU has been exceptionally helpful and very nice.
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Re: Best CD rates thread

Post by Kevin M » Wed Oct 16, 2019 8:43 pm

MikeG62 wrote:
Wed Oct 16, 2019 5:47 pm
I opened and funded two CD's two weeks ago. Opened share account and funded it and then the CD's all in one day. Funds were same day wired (not ACH) from Fidelity at no cost.
You beat me. It took me two days (I submitted the application Monday, but that was a bank holiday, so it doesn't count). Account was open yesterday, but no way would a wire have gotten there in time, so I provided the wire instructions yesterday for a wire today. The sending bank charged me $20 for the wire transfer, but that's less than a day's interest on $300K, so worth it.

Really easy to open the CDs. Their web interface is quite nice.

Next, I downloaded the "tentative trust" form (their term for POD account), filled it out, printed/signed/scanned the signature page, and emailed it to them. Email address provided by another friendly PSECU rep.
Just completed funding an IRA CD as well today. That took a bit longer, but IRA transfers typically do.
Did they agree to lock the rate when you initiated the IRA transfer? I've done many, but I did get burned by the rate dropping once or twice, so I'm less willing to jump on these deals in an IRA than in taxable.
I also added the "auto transfer" feature today to both of the CD's I opened two weeks ago. This is a really neat feature.
You mean the monthly additions automatically transferred from the share account? I set that up when opening the CDs, but the note said you could do it within 30 days of opening.

I set both (2y and 3y) up to add $10K per month, since you can reduce or stop the monthly additions, but can't increase them. I'm not sure how much more I'll add, but I still have a fair amount of cash I didn't want to commit right now, and I have individual bonds maturing monthly for another couple of years, so as long as rates remain generally low, this is a good place to keep putting the cash.
Everyone I have spoken with at PSECU has been exceptionally helpful and very nice.
Ditto. Either they hire really good people or train them really well--or both.

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Re: Best CD rates thread

Post by MikeG62 » Thu Oct 17, 2019 7:04 am

Hey Kevin,

Glad you found this deal/thread. You help a lot of people on these boards and it's good to get some benefit yourself. :D I know you've been taking advantage of a lot of CD specials the last 6-12 months, so I thought maybe you were passing on this one. Good to see you are not and that you are in :sharebeer
Kevin M wrote:
Wed Oct 16, 2019 8:43 pm
MikeG62 wrote:
Wed Oct 16, 2019 5:47 pm
I opened and funded two CD's two weeks ago. Opened share account and funded it and then the CD's all in one day. Funds were same day wired (not ACH) from Fidelity at no cost.
You beat me. It took me two days (I submitted the application Monday, but that was a bank holiday, so it doesn't count). Account was open yesterday, but no way would a wire have gotten there in time, so I provided the wire instructions yesterday for a wire today. The sending bank charged me $20 for the wire transfer, but that's less than a day's interest on $300K, so worth it.

Really easy to open the CDs. Their web interface is quite nice.
Agree!
Kevin M wrote:
Wed Oct 16, 2019 8:43 pm
Next, I downloaded the "tentative trust" form (their term for POD account), filled it out, printed/signed/scanned the signature page, and emailed it to them. Email address provided by another friendly PSECU rep.
You did one better than me. I initially opened my PSECU account as an individual account (was worried about slowing the process by having them background check both my DW and I). Once opened and funded, I called and inquired about adding my DW as a joint owner. They said no problem and snail mailed me the form. They either did not volunteer that I could download it, or I did not ask. Having said that, it was at the same time I was trying to open the IRA CD, which I think has to be done on the phone. Since they had to send me documents relating to that, maybe it was just easier for them to put the change in account ownership form in the same package.
Kevin M wrote:
Wed Oct 16, 2019 8:43 pm
MikeG62 wrote:
Wed Oct 16, 2019 5:47 pm
Just completed funding an IRA CD as well today. That took a bit longer, but IRA transfers typically do.
Did they agree to lock the rate when you initiated the IRA transfer? I've done many, but I did get burned by the rate dropping once or twice, so I'm less willing to jump on these deals in an IRA than in taxable.
I shared your worry here. However, the rep told me at the time I was applying for the IRA CD that the rate had been extended through Nov 1, so I had "nothing to worry about". When I pressed her that plans could change, she said not in this case as the rate extension had been publicly announced (local newspaper). I have read on Deposit Accounts that there was a flyer included in the account statement of existing members too announcing the rate lock through Nov 1.
Kevin M wrote:
Wed Oct 16, 2019 8:43 pm
MikeG62 wrote:
Wed Oct 16, 2019 5:47 pm
I also added the "auto transfer" feature today to both of the CD's I opened two weeks ago. This is a really neat feature.
You mean the monthly additions automatically transferred from the share account? I set that up when opening the CDs, but the note said you could do it within 30 days of opening.

I set both (2y and 3y) up to add $10K per month, since you can reduce or stop the monthly additions, but can't increase them. I'm not sure how much more I'll add, but I still have a fair amount of cash I didn't want to commit right now, and I have individual bonds maturing monthly for another couple of years, so as long as rates remain generally low, this is a good place to keep putting the cash.
Yup that is the one. I did not set it up initially as I was told during one of the calls I had with a PSECU rep that I could do that at any time within the first 30 days of opening the account and then could have it begin anytime within 30 days of adding it. I wanted time to figure out how I could strategically spread the future contributions over time, aligning those as best I could with the dates I would have access to funds that are currently tied up (a large slug has just freed up now, the second large block frees up in early November (it is on deposit with Marcus bank from their July bonus offer) and other blocks free up at various dates in spring of 2020 from traditional CD's). I will be breaking some no penalty CD's along the way too as a bridge between the Marcus funds freeing up and the traditional CD's maturing. Spent a bit of time yesterday laying this all out in an excel spreadsheet so I could make sure I had the funding schedule down. As you know, once you decrease the auto transfer you cannot increase it and once you stop it, you cannot restart it either.

My plan is to get both CD's I opened two weeks ago funded up to a total of $470K (combined balance between the two of them) between now and middle of 2020 (so that with compound interest the amount on deposit never exceeds the NCUA insurance limit). Most of the funding will be made in the next two months. I'll then feather back on the amount of the auto transfer so I can extend things out to get to the maturing CD's in the spring of 2020.
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Re: Best CD rates thread

Post by Scooter57 » Thu Oct 17, 2019 1:20 pm

The value of information like this is why I have kept visiting this forum for years. Kevin M's advice about CDs has earned me many tens of thousands of dollars I wouldn't have had over the past 7 years.

I finally got my 3 yr PSECU CD opened. It took a while because I didn't call in when I didn't hear anything on Tuesday, and then apparently there was a typo in my credit card number (my vision ain't what it used to be) so the initial share deposit didn't go through. I ended up calling them 4 times and every time I called the rep (a different one each time) was friendly, extremely helpful, and solved the issue.

Our power went out this morning thanks to the big Nor'easter, so I ended up having to do all the online stuff required to open my account on my phone including opening the CD. Everything went flawlessly. It's a nice change dealing with a banking institution staffed by people who know what they are doing with an online interface that works!

I'm hoping that now that I put a big chunk of money into a 3 year CD rates will rise again. With my luck they will. <g>

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Re: Best CD rates thread

Post by MikeG62 » Thu Oct 17, 2019 1:57 pm

Scooter57 wrote:
Thu Oct 17, 2019 1:20 pm
The value of information like this is why I have kept visiting this forum for years. Kevin M's advice about CDs has earned me many tens of thousands of dollars I wouldn't have had over the past 7 years.
Agree with you, Kevin is one of the most valuable contributors to this forum.
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Re: Best CD rates thread

Post by Ricchan » Thu Oct 17, 2019 8:57 pm

Just wanted to echo what others have said about PSECU phone support. I've called three times-- once to ask a question about their fee structure, once about their ACH, and once on a conference call with another bank for a wire transfer. All three times the service rep has been very friendly and helpful.

And although it is a bit off topic, also wanted to say that I appreciate Kevin's posts on these forums very much. The fact that he shares so much valuable information here is one of the main reasons I visit this forum.

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Re: Best CD rates thread

Post by dollarsaver » Thu Oct 17, 2019 9:24 pm

Hi. If you set up the PSECU CD's to have $50K each month deposited( money from Marcus coming due in a couple of weeks) that means they will transfer $50K from the share account into the CD. Then you can reduce the amount I know say to 10K each month . But does that mean you have to put $10K into the CD each month? If I have a chunk of money from another CD in January for $100K ,I would have to wait 10 months to deposit it. But if I leave it at the $50K as I have it now, do you have to put in $50K each month until January? Thanks

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Re: Best CD rates thread

Post by 2Birds1Stone » Fri Oct 18, 2019 4:36 am

I successfully got my $25k into the CD this morning, instantly.

I have $10k in funds becoming available in late November. Trying to figure out how to get that in with the automated fund addition option.

Can you set it up as a once a month thing? I could probably free up $5k as a bridge before those funds become available, then pop the $10k in across two additional payments.

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Re: Best CD rates thread

Post by MikeG62 » Fri Oct 18, 2019 6:49 am

dollarsaver wrote:
Thu Oct 17, 2019 9:24 pm
Hi. If you set up the PSECU CD's to have $50K each month deposited( money from Marcus coming due in a couple of weeks) that means they will transfer $50K from the share account into the CD. Then you can reduce the amount I know say to 10K each month . But does that mean you have to put $10K into the CD each month? If I have a chunk of money from another CD in January for $100K ,I would have to wait 10 months to deposit it. But if I leave it at the $50K as I have it now, do you have to put in $50K each month until January? Thanks
Whatever you set as the transfer will be transferred monthly until you either reduce or cancel it. Once reduced, it cannot be increased again and once cancelled it cannot be restarted.

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?

Yes this means the Marcus money won't be invested in the CD right away. Not the end of the world. You can either leave it at Marcus (online savings or no-penalty CD for example) or temporarily move it elsewhere. Just make sure to get it in your PSECU share account by Dec 13th.

I plan to leave our Marcus funds (2 x $50K) on deposit until the bonus posts. I am 99.99% sure I can sweep it out on Nov 5th (per their web site, that is the end date of my maintenance period), but don't see any reason to take any chances. After all, the T&C's of the bonus offer say "If we determine that you have engaged in or plan to engage in abuse or gaming in connection with this offer, you will not be eligible for this offer". I set my auto transfer allowing sufficient time for the bonuses to post and the funds to get transferred to our PSECU share account.

2Birds1Stone wrote:
Fri Oct 18, 2019 4:36 am
I successfully got my $25k into the CD this morning, instantly.

I have $10k in funds becoming available in late November. Trying to figure out how to get that in with the automated fund addition option.

Can you set it up as a once a month thing? I could probably free up $5k as a bridge before those funds become available, then pop the $10k in across two additional payments.
Do what I suggested above. You could in theory have your first auto transfer done as late as Dec 17th, so that would work for you.

I'd suggest calling in to add the auto transfer feature in early November and have it begin in early December. Allow sufficient time for your $10K to become available and moved into your share account at PSECU before the auto transfer kicks in.
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Re: Best CD rates thread

Post by indexfundfan » Fri Oct 18, 2019 6:52 am

If you set up a monthly transfer into the PSECU CD, it means exactly that, a monthly transfer (until you terminate it).

I'm not sure what would happen to future transfers if there is insufficient money for the transfer in a certain month. I'm thinking the whole transfer series would be cancelled, but to be sure, please call PSECU and ask.
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Re: Best CD rates thread

Post by EvelynTroy » Fri Oct 18, 2019 8:34 am

I too phoned PSECU and set up the "add-on" feature for my CD purchased 10/9 this morning.
Like my other contacts with PSECU - no long wait time, friendly, professional representative, who was patient and not in a rush as I explained back how I understood the add-on worked. A pleasure to do business with PSECU.
Mine will begin 11/1 with a larger amount and then continue on 12/1 with recurring smaller amounts. What a nice feature this is.

Evelyn

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Re: Best CD rates thread

Post by HeelaMonster » Fri Oct 18, 2019 8:54 am

Adding my thanks to others for this thread! :sharebeer

I just purchased 3-year CD from PSECU at 3.25%. My experience was much like others have reported. I read about it on Tuesday, submitted application that evening, approved on Thursday morning, wired funds Thursday afternoon, completed transaction first thing Friday morning. All relatively smooth. Biggest delay was needing to scan and upload drivers licences for both of us, to complete the application. There were a few more phone calls than might've been necessary to clarify next steps or get info, but didn't take long and phone reps were helpful. I had to laugh when more than one of them asked "Are you planning to purchase a CD?".... they obviously are dealing with a LOT of people, from BH and elsewhere, getting in on this offer! I was hoping that moving money from one state employees credit union (my home bank) to another might grease the skids, but there was still a $10 wire fee.

Happy to have this done. The increase over the interest I have been earning on these funds sitting in MM at my home SECU will amount to around $6000 over three years, so that's a nice bonus for time spent on BH.

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Re: Best CD rates thread

Post by 2Birds1Stone » Fri Oct 18, 2019 12:48 pm

MikeG62 wrote:
Fri Oct 18, 2019 6:49 am
Do what I suggested above. You could in theory have your first auto transfer done as late as Dec 17th, so that would work for you.

I'd suggest calling in to add the auto transfer feature in early November and have it begin in early December. Allow sufficient time for your $10K to become available and moved into your share account at PSECU before the auto transfer kicks in.
Thank you!, I actually went so far as to break a crappy 5 year 2.2% CD I had with another institution this morning, even with the 6 month interest penalty I will come out $500 ahead by moving the money into the PSECU account. I will make sure to set up the recurring deposits with this second one off the bat.

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Re: Best CD rates thread

Post by MikeG62 » Fri Oct 18, 2019 1:00 pm

indexfundfan wrote:
Fri Oct 18, 2019 6:52 am
If you set up a monthly transfer into the PSECU CD, it means exactly that, a monthly transfer (until you terminate it).

I'm not sure what would happen to future transfers if there is insufficient money for the transfer in a certain month. I'm thinking the whole transfer series would be cancelled, but to be sure, please call PSECU and ask.
I asked this of PSECU and was told if there were insufficient funds for any of the future transfers, that transfer would fail and that would end the ability to make any future transfers into the CD. Think of it as a transfer at $0. Since you are prevented from increasing the amount of the auto transfer once reduced you are stuck at zero.
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Re: Best CD rates thread

Post by indexfundfan » Fri Oct 18, 2019 2:32 pm

MikeG62 wrote:
Fri Oct 18, 2019 1:00 pm
indexfundfan wrote:
Fri Oct 18, 2019 6:52 am
If you set up a monthly transfer into the PSECU CD, it means exactly that, a monthly transfer (until you terminate it).

I'm not sure what would happen to future transfers if there is insufficient money for the transfer in a certain month. I'm thinking the whole transfer series would be cancelled, but to be sure, please call PSECU and ask.
I asked this of PSECU and was told if there were insufficient funds for any of the future transfers, that transfer would fail and that would end the ability to make any future transfers into the CD. Think of it as a transfer at $0. Since you are prevented from increasing the amount of the auto transfer once reduced you are stuck at zero.
Thanks. That makes sense.
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Re: Best CD rates thread

Post by Kevin M » Fri Oct 18, 2019 6:20 pm

MikeG62 wrote:
Thu Oct 17, 2019 7:04 am
Kevin M wrote:
Wed Oct 16, 2019 8:43 pm
MikeG62 wrote:
Wed Oct 16, 2019 5:47 pm
Just completed funding an IRA CD as well today. That took a bit longer, but IRA transfers typically do.
Did they agree to lock the rate when you initiated the IRA transfer? I've done many, but I did get burned by the rate dropping once or twice, so I'm less willing to jump on these deals in an IRA than in taxable.
I shared your worry here. However, the rep told me at the time I was applying for the IRA CD that the rate had been extended through Nov 1, so I had "nothing to worry about". When I pressed her that plans could change, she said not in this case as the rate extension had been publicly announced (local newspaper). I have read on Deposit Accounts that there was a flyer included in the account statement of existing members too announcing the rate lock through Nov 1.
OK, you motivated me to go for an IRA CD as well. I have a lot in money market and ultra-short-term bond funds in a Vanguard IRA, having done a couple of IRA transfers into Vanguard of matured CD proceeds in August.

Called the PSECU IRA/CD department (extension 3570), and the nice lady told me that if Vanguard would accept a faxed IRA transfer form, I could FAX the IRA application and transfer form to PSECU, then they'd FAX it to Vanguard; she gave me their FAX number. She guided me to the online IRA application, and it worked as smoothly as all of their other online stuff has. The only glitch is when I got to the step to print the forms, the forms opened in their interface without anything filled in, but there was a choice to open using another application, and when I clicked that and opened in Adobe, they were filled in as expected.

Called Vanguard, and they said they would accept a FAXed IRA transfer form, and the rep gave me the Vanguard FAX number to use. So, I faxed the signed forms to PSECU. If this actually works, it should be one of the fastest IRA transfers I've ever done.

Since you can't get around the $250K FDIC/NCUA insurance limit for an IRA, I'm putting $227,000 into the 3-year CD, which will grow to about 249,860 in three years at 3.25% ( =FV(3.25%, 3, 0, -227000, 0) ). The initial amount can be calculated using the PV function as =-PV(3.25%, 3, 0, 250000) = 227,128.

Kevin
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Re: Best CD rates thread

Post by DaftInvestor » Fri Oct 18, 2019 6:23 pm

stlutz wrote:
Mon Oct 14, 2019 10:43 pm
What are 3 to 5 banks and credit unions that consistently offer high CD rates and allow to move money among them relatively easily?
One other criteria for me is that the CDs don't auto renew. Right now Ally and Alliant are the only ones I'm aware of that have this option.

Life gets busy--when a CD matures I just want the money to end up in my checking or savings account. I'll decide on my own timeline what to do with it then.
Marcus and Synchrony both have the option not to renew - can set the disposition ahead of time. I thought all online banks had it by now

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Re: Best CD rates thread

Post by MikeG62 » Fri Oct 18, 2019 7:24 pm

Kevin M wrote:
Fri Oct 18, 2019 6:20 pm
MikeG62 wrote:
Thu Oct 17, 2019 7:04 am
Kevin M wrote:
Wed Oct 16, 2019 8:43 pm
MikeG62 wrote:
Wed Oct 16, 2019 5:47 pm
Just completed funding an IRA CD as well today. That took a bit longer, but IRA transfers typically do.
Did they agree to lock the rate when you initiated the IRA transfer? I've done many, but I did get burned by the rate dropping once or twice, so I'm less willing to jump on these deals in an IRA than in taxable.
I shared your worry here. However, the rep told me at the time I was applying for the IRA CD that the rate had been extended through Nov 1, so I had "nothing to worry about". When I pressed her that plans could change, she said not in this case as the rate extension had been publicly announced (local newspaper). I have read on Deposit Accounts that there was a flyer included in the account statement of existing members too announcing the rate lock through Nov 1.
OK, you motivated me to go for an IRA CD as well. I have a lot in money market and ultra-short-term bond funds in a Vanguard IRA, having done a couple of IRA transfers into Vanguard of matured CD proceeds in August.

Called the PSECU IRA/CD department (extension 3570), and the nice lady told me that if Vanguard would accept a faxed IRA transfer form, I could FAX the IRA application and transfer form to PSECU, then they'd FAX it to Vanguard; she gave me their FAX number. She guided me to the online IRA application, and it worked as smoothly as all of their other online stuff has. The only glitch is when I got to the step to print the forms, the forms opened in their interface without anything filled in, but there was a choice to open using another application, and when I clicked that and opened in Adobe, they were filled in as expected.

Called Vanguard, and they said they would accept a FAXed IRA transfer form, and the rep gave me the Vanguard FAX number to use. So, I faxed the signed forms to PSECU. If this actually works, it should be one of the fastest IRA transfers I've ever done.

Since you can't get around the $250K FDIC/NCUA insurance limit for an IRA, I'm putting $227,000 into the 3-year CD, which will grow to about 249,860 in three years at 3.25% ( =FV(3.25%, 3, 0, -227000, 0) ). The initial amount can be calculated using the PV function as =-PV(3.25%, 3, 0, 250000) = 227,128.

Kevin
That's great Kevin. A good decision.

Will VG still need to send a check by snail mail or will the funds be sent electronically?

Fidelity told me they could do an ACAT if PSECU could accept an ACAT, but that did not happen (so I assume they couldn't).

Ha, good to see you are very close to maximizing the amount you can put in the IRA CD and remain within the NCUA insurance limit (well within $127 of maxing it out if my math is right). :) :beer.
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Re: Best CD rates thread

Post by Kevin M » Sat Oct 19, 2019 11:53 am

MikeG62 wrote:
Fri Oct 18, 2019 7:24 pm
Will VG still need to send a check by snail mail or will the funds be sent electronically?

Fidelity told me they could do an ACAT if PSECU could accept an ACAT, but that did not happen (so I assume they couldn't).
The PSECU rep told me that they could only accept a check for an IRA transfer, so that will be the slowest part.

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Re: Best CD rates thread

Post by BlackcatCA » Sat Oct 19, 2019 1:52 pm

Late to this thread wasted time with another CU. Does any one know if this special CD will still be available for another week or two?

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Re: Best CD rates thread

Post by Kevin M » Sat Oct 19, 2019 2:01 pm

BlackcatCA wrote:
Sat Oct 19, 2019 1:52 pm
Late to this thread wasted time with another CU. Does any one know if this special CD will still be available for another week or two?
The intel shared above is that the rates are good through Nov 1. I'm counting on that with my IRA transfer.

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Re: Best CD rates thread

Post by EvelynTroy » Sat Oct 19, 2019 2:06 pm

BlackcatCA wrote:
Sat Oct 19, 2019 1:52 pm
Late to this thread wasted time with another CU. Does any one know if this special CD will still be available for another week or two?
Blackcat, the CU publishes their rates a week at a time. If you would be purchasing one today on the application page of the website you would see:

These rates are valid from Monday, October 14, 2019 to Sunday, October 20, 2019.

On Monday Oct. 21 - they will announce the rates for the next week - its been reported here reps. advised these rates would continue until Nov. 1 - but that is not in print.
The rates may change on Mon, but then again they may not. You should phone. If you open your share/savings account it gets opened, and you decide to go ahead and purchase a CD, don't forget about the add-on feature. You have 30 days to phone and have them set up the add-on in the amount and frequency you wish. Just something to consider. I think its a very nice feature, because your term does not start over when you make the add-on payments - so the entire time you hold the CD you can continue to add money to it and earn a nice interest rate.

Good Luck - Evelyn

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Re: Best CD rates thread

Post by indexfundfan » Sat Oct 19, 2019 3:11 pm

I just received this from PSECU. It looks like the rates should last until 11/1/19. Of course the standard disclaimer still applies (the Boglehead effect could flood them with too much money that they have to terminate the offer earlier).

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Re: Best CD rates thread

Post by SlowMovingInvestor » Sun Oct 20, 2019 1:47 pm

Just saw this thread, and I have some questions about the logistics --

Say I open an account today or tomorrow. I can then move money into the source account I'm using to fund the CD, and then wire money in to their 'share account' (deposit) and then purchase a CD by the deadline date end of week ? Then set up auto deposit (from where is the money taken ?)

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Re: Best CD rates thread

Post by Kevin M » Sun Oct 20, 2019 1:55 pm

SlowMovingInvestor wrote:
Sun Oct 20, 2019 1:47 pm
Just saw this thread, and I have some questions about the logistics --

Say I open an account today or tomorrow. I can then move money into the source account I'm using to fund the CD, and then wire money in to their 'share account' (deposit) and then purchase a CD by the deadline date end of week ?
Yes. 1: Open account, 2: wire money to share account. 3: buy CD the day the money arrives at PSECU.
Then set up auto deposit (from where is the money taken ?)
You can set up monthly auto deposits into the CD online at the same time you buy it, or within 30 days. The money is taken from the share account, so you would have to link PSECU as an external credit union at your source bank or brokerage, and then transfer the auto-deposit amount into your PSECU share account monthly, making sure it gets there before the auto-deposit date. I'm assuming we want to get it into the share account the day before the auto-deposit date, but probably will call PSECU to ask if the same day is good enough (to minimize the lost interest sitting in the low-yield share account).

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Re: Best CD rates thread

Post by indexfundfan » Sun Oct 20, 2019 2:18 pm

Kevin M wrote:
Sun Oct 20, 2019 1:55 pm
I'm assuming we want to get it into the share account the day before the auto-deposit date, but probably will call PSECU to ask if the same day is good enough (to minimize the lost interest sitting in the low-yield share account).
The money needs to be in the share account the day before, because the money is taken out early in the morning.
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Re: Best CD rates thread

Post by SlowMovingInvestor » Sun Oct 20, 2019 2:51 pm

One more question -- if you fund with credit card, is it counted as a cash advance ?

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Re: Best CD rates thread

Post by scintillator » 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.

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Re: Best CD rates thread

Post by Kevin M » Sun Oct 20, 2019 3:47 pm

SlowMovingInvestor wrote:
Sun Oct 20, 2019 2:51 pm
One more question -- if you fund with credit card, is it counted as a cash advance ?
Nope, just a regular charge.

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