Best CD rates thread

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Kevin M
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Re: Best CD rates thread

Post by Kevin M » Fri Nov 08, 2019 7:38 pm

travlinman561 wrote:
Fri Nov 08, 2019 7:27 pm
I mailed in an ira application a week and a half ago to psecu to transfer funds from vanguard. From vanguard's website, they mailed psecu a check November 5. As of now psecu hasn't received it. According to depositaccounts, the 2 and 3 year rates are only good until tomorrow, not the end of november. I guess I am SOL
Where on DA does it say the rates are only good until tomorrow? Below is from a DA post on Nov 5:
As I mentioned in my October 26th post on these PSECU’s CDs, I was told by PSECU that they intend to offer these specials through November. Of course, there’s no guarantee. The small print does say “Rates and information are subject to change at any time.” If the demand for these CDs is high enough, they may end these specials early. Fortunately, PSECU is a large credit union. It’s the 32nd largest credit union in the nation with assets in excess of $5.5 billion and deposits of almost $5 billion. That should reduce the odds that they will be forced to end the special rates early.
Oh, never mind. Toward the end of the comments to the above post, I see this:
RATE CHANGE....on Promo 2 and 3 yr. CD's. The current PSECU rates on the 2 and 3 year Promo CD's will continue thru 11/9 ONLY. Confirmed by service advisor and customer service manager on 11/8, 2:32 Pacific time. Reason for rate change based on Board of Directors decision this week, no specific reason given to customer service. New rates are not available at this time. My earlier comment here #32 where I stated "sometimes you can overdo a good thing," was referring to Ken's need to repost the PSECU offer, and now we see the promo offer has been pulled way short of the previous announced 11/30 end date. A coincidence? Maybe. However, sometimes you can overstate a good thing.
Bummer. A friend of mine just applied a couple of days ago, and I don't think he's even had his membership accepted yet. Guess he's out of luck.

Kevin
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indexfundfan
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Re: Best CD rates thread

Post by indexfundfan » Fri Nov 08, 2019 8:28 pm

Wow, just read that DA thread.

I suspect there could be many people who opened the PSECU CD with $500 just to gain a foothold onto the add-on feature. So PSECU could be looking at a potential big inflow of funds. To deal with this, they might be looking to tighten the add-on rules.
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SlowMovingInvestor
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Re: Best CD rates thread

Post by SlowMovingInvestor » Fri Nov 08, 2019 8:49 pm

Big thread on PSECU, but I wonder if anyone has any comments on Sallie Mae's 2.35% 1 year CD. 90 day penalty, but a pretty good rate.

Carl53
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Re: Best CD rates thread

Post by Carl53 » Sat Nov 09, 2019 4:43 am

dollarsaver wrote:
Fri Nov 08, 2019 2:13 pm
Kevin M wrote:
Fri Nov 08, 2019 12:47 pm
Carl53 wrote:
Fri Nov 08, 2019 10:55 am
Kevin M wrote:
Wed Oct 23, 2019 3:33 pm
I'm putting $227K into a 3-year IRA CD as soon as the check from Vanguard arrives.
My rant. Maybe I should have tried asking for a check, but am wore down and giving up. After 12 days (including a week to get the Chexsystems freeze lifted as I never received a PIN) and a few calls and an hour or so on hold, my PSECU savings account is finally set up. Today, I have had several more calls, another hour plus on hold or talking to PSECU to get around glitches that popped up in the online application process and a couple of calls to Vanguard I am giving up on hoping to set up a similar TIRA CD with Vanguard funds. At this point, PSECU says they don't know if it could all happen (there are three holidays yet this month). Kevin, it sounds like you were doing a rollover and actually taking possession of the check. I was hoping to do a direct transfer. Vanguard did not particularly help with the second Flagship rep telling me they would not accept faxed paperwork contrary to what others reported.
I did a custodian to custodian transfer. Vanguard sent the check to PSECU, which is typical for an IRA transfer. What I meant was when the check arrives at PSECU.

If you FAX the transfer form to PSECU and they FAX it to Vanguard, it should only take about a week to complete the transfer--that's how long it took for me and at least one other poster. Seems to me that there is plenty of time left in the month to get it done.

Here is the Vanguard FAX number I used: 484-582-4544. I wrote "FAX to Vanguard at ..." on the transfer form. Here is the PSECU FAX number: 717-720-1114. If FAXing worked for me, I don't see why it wouldn't work for you.

Kevin
+1 Six days for me using the above fax # for Vanguard and above fax # for PSECU
Thanks Kevin and dollar. (I see that more recent comments on rate may very likely preclude me actually acting on this.) I had decided to go ahead with it. Got the forms to print by telling PSECU website that I would tell them the deposit method later. Now I see on the transfer form signature page, there is a spot for notary signature that is designated (if required by the trustee or custodian). For what may turn out to be only academic purposes, did you have a notary witness this?

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Re: Best CD rates thread

Post by Bluce » Sat Nov 09, 2019 7:52 am

To the thread title: Best CD rates thread

I started a CD ladder in the spring of 2018 with 3, 6, 9, and 12 month new issues from Schwab, within my SEP-IRA (they were between 1.75% and 2.25% as I recall). After a couple came due I replaced one with a 2.75% one year and I thought this is great -- if I get to 3% I will forget about bond funds and just go with CDs.

But that was the end. Rates stabilized and began retreating a bit (this was about a year ago). Then I could buy a 9 month with a higher yield than a 12 month and that was the last one I bought. One more came due but I did not replace it, nor will I replace the remaining three -- the last of which comes due in March.

The rates were all over the place: One month paying more than a 9 or 12 month, etc. I just looked the other day and they're still all messed up, not to mention too low to bother with:

_3 month: 1.610%
12 month: 1.601%

Oh well, it will all go back into bond funds.

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Re: Best CD rates thread

Post by MikeG62 » Sat Nov 09, 2019 10:24 am

indexfundfan wrote:
Fri Nov 08, 2019 8:28 pm
Wow, just read that DA thread.

I suspect there could be many people who opened the PSECU CD with $500 just to gain a foothold onto the add-on feature. So PSECU could be looking at a potential big inflow of funds. To deal with this, they might be looking to tighten the add-on rules.
Exactly the reason I intend to follow the rules as published on their web site (i.e., make sure I have sufficient funds in my share account every month to meet the scheduled transfer).

When I was told the offer was going to be extended until Nov 30th (by more than one PSECU CSR, by the way - in fact, I was told by at least one long-tenured CSR that she had never seen PSECU early terminate a promotional CD rate) my plan was to open two additional CD's later this month to effectively extend the rate lock on my PSECU CD's by roughly another two months (original CD's opened at the beginning of October). Guess I will now just stick with the add-on feature I placed on the first two CD's back in Oct.
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Re: Best CD rates thread

Post by Lloydo » Sat Nov 09, 2019 10:25 am

Thanks Kevin and dollar. (I see that more recent comments on rate may very likely preclude me actually acting on this.) I had decided to go ahead with it. Got the forms to print by telling PSECU website that I would tell them the deposit method later. Now I see on the transfer form signature page, there is a spot for notary signature that is designated (if required by the trustee or custodian). For what may turn out to be only academic purposes, did you have a notary witness this?
Neither Vanguard nor PSECU required the forms to be notarized. I FAX'd my app to PSECU last Tuesday and included the Vanguard FAX number as part of the transfer instructions. Things went very quickly in that I saw the withdrawal was processed by Vanguard (check indicated) on Wednesday. As I haven't seen a record of deposit yet at PSECU, it will be interesting to see how the rate shown on the application form is handled.

Lloyd

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Re: Best CD rates thread

Post by Katietsu » Sat Nov 09, 2019 11:03 am

MikeG62 wrote:
Sat Nov 09, 2019 10:24 am

When I was told the offer was going to be extended until Nov 30th (by more than one PSECU CSR, by the way - in fact, I was told by at least one long-tenured CSR that she had never seen PSECU early terminate a promotional CD rate)
I suspect the difference is that PSECU recently opened membership to basically anybody. Before this, when the offer was opened only to those with certain relationships or a PA state residence, you would not have had very many people like in this thread bringing in over half a million dollars. I was very surprised that the promotion was extended past October 31 once I started seeing threads like this.

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Re: Best CD rates thread

Post by travlinman561 » Sat Nov 09, 2019 12:44 pm

Neither Vanguard nor PSECU required the forms to be notarized. I FAX'd my app to PSECU last Tuesday and included the Vanguard FAX number as part of the transfer instructions. Things went very quickly in that I saw the withdrawal was processed by Vanguard (check indicated) on Wednesday. As I haven't seen a record of deposit yet at PSECU, it will be interesting to see how the rate shown on the application form is handled.
My Vanguard IRA check was issued Tuesday. According to the USPS service map, it should only take 2 days for a Valley Forge to Harrisburg mail delivery. I wonder why they didn't receive it, or maybe they did but are so backed up in processing. I wish there was some option for Vanguard to send it overnight delivery.

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Re: Best CD rates thread

Post by Kevin M » Sat Nov 09, 2019 1:33 pm

Bluce wrote:
Sat Nov 09, 2019 7:52 am
To the thread title: Best CD rates thread

I started a CD ladder in the spring of 2018 with 3, 6, 9, and 12 month new issues from Schwab, within my SEP-IRA (they were between 1.75% and 2.25% as I recall). After a couple came due I replaced one with a 2.75% one year and I thought this is great -- if I get to 3% I will forget about bond funds and just go with CDs.

But that was the end. Rates stabilized and began retreating a bit (this was about a year ago). Then I could buy a 9 month with a higher yield than a 12 month and that was the last one I bought. One more came due but I did not replace it, nor will I replace the remaining three -- the last of which comes due in March.

The rates were all over the place: One month paying more than a 9 or 12 month, etc. I just looked the other day and they're still all messed up, not to mention too low to bother with:

_3 month: 1.610%
12 month: 1.601%

Oh well, it will all go back into bond funds.
With a bond fund you're just taking more term risk, and depending on the type of fund, possibly some credit risk. If you eliminate the credit risk and stick with Treasuries, you're looking at a yield on the 10-year Treasury of 1.94%. Fidelity is offering a 10-year brokered CD with a yield of 2.50%. The 5-year Treasury yield is 1.74%, and Fidelity 5-year CD is 2.20%.

So you still could earn more with a CD ladder than with a Treasury ladder, and a Treasury ladder is comparable to a Treasury bond fund with same maturity/duration characteristics.

Treasuries are much more liquid than CDs though; the bid/ask spreads are tiny--could be one basis point or less--while the bid/ask spread on CDs can be 100 basis points or more. So you wouldn't want to do a CD ladder unless you plan to hold the CDs to maturity.

Also, Treasuries are exempt from state income tax, so that needs to be factored into the analysis for a taxable account subject to state income tax.

And of course as this thread illustrates, you might do significantly better with direct CDs.

Kevin
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pyld76
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Re: Best CD rates thread

Post by pyld76 » Sat Nov 09, 2019 1:39 pm

Katietsu wrote:
Sat Nov 09, 2019 11:03 am
MikeG62 wrote:
Sat Nov 09, 2019 10:24 am

When I was told the offer was going to be extended until Nov 30th (by more than one PSECU CSR, by the way - in fact, I was told by at least one long-tenured CSR that she had never seen PSECU early terminate a promotional CD rate)
I suspect the difference is that PSECU recently opened membership to basically anybody. Before this, when the offer was opened only to those with certain relationships or a PA state residence, you would not have had very many people like in this thread bringing in over half a million dollars. I was very surprised that the promotion was extended past October 31 once I started seeing threads like this.
I’m not surprised, but for different reasons.

PSECU used to have a relatively restricted field of membership (mine stems from the fact that my parents were actual state workers 30 years ago). So long as you for one of those groups, you could join regardless of residency. Several years ago, they added the PA parks/rec society (or whatever it is) as an SEG in their field of membership. It them become, for all intents and purposes, a de minimis cover charge. This has been the reality for years now. The first time the internet found the loophole was when PSECU started providing free FICO scores monthly years before it became commonplace.

For years, PSECU was aggressive about returning value to its field of membership. They handed out “relationship awards” (return of earnings, ostensibly). They’ve covered like $20 bucks a month of ATM fees forever. They had consistently good CD rates.

Now, they’ve stopped returning earnings to members directly and started doing things like a 2% cash back card and this CD deal that are almost seemingly designed to attract “hot money.” Most of the change to a “gathering asset” mindset has accelerated with a changing of the guard at the top (the longtime president recently retired).

My bet? Because this deal ended up all over the internet that the BOD realized they overcooked it and is yanking the marketing people and new President back into reality. Guess we will all find out this week.

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Re: Best CD rates thread

Post by Bluce » Sat Nov 09, 2019 2:25 pm

Kevin M wrote:
Sat Nov 09, 2019 1:33 pm
Bluce wrote:
Sat Nov 09, 2019 7:52 am
To the thread title: Best CD rates thread

I started a CD ladder in the spring of 2018 with 3, 6, 9, and 12 month new issues from Schwab, within my SEP-IRA (they were between 1.75% and 2.25% as I recall). After a couple came due I replaced one with a 2.75% one year and I thought this is great -- if I get to 3% I will forget about bond funds and just go with CDs.

But that was the end. Rates stabilized and began retreating a bit (this was about a year ago). Then I could buy a 9 month with a higher yield than a 12 month and that was the last one I bought. One more came due but I did not replace it, nor will I replace the remaining three -- the last of which comes due in March.

The rates were all over the place: One month paying more than a 9 or 12 month, etc. I just looked the other day and they're still all messed up, not to mention too low to bother with:

_3 month: 1.610%
12 month: 1.601%

Oh well, it will all go back into bond funds.
With a bond fund you're just taking more term risk, and depending on the type of fund, possibly some credit risk. If you eliminate the credit risk and stick with Treasuries, you're looking at a yield on the 10-year Treasury of 1.94%. Fidelity is offering a 10-year brokered CD with a yield of 2.50%. The 5-year Treasury yield is 1.74%, and Fidelity 5-year CD is 2.20%.

So you still could earn more with a CD ladder than with a Treasury ladder, and a Treasury ladder is comparable to a Treasury bond fund with same maturity/duration characteristics.

Treasuries are much more liquid than CDs though; the bid/ask spreads are tiny--could be one basis point or less--while the bid/ask spread on CDs can be 100 basis points or more. So you wouldn't want to do a CD ladder unless you plan to hold the CDs to maturity.

Also, Treasuries are exempt from state income tax, so that needs to be factored into the analysis for a taxable account subject to state income tax.

And of course as this thread illustrates, you might do significantly better with direct CDs. :mrgreen:

Kevin
This is all within a SEP-IRA so I don't care about taxes, and I'm staying with Schwab's platform to keep it simple. I originally took the CD money out of bond funds, so it'll just go back in as it matures.

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Re: Best CD rates thread

Post by aida2003 » Sat Nov 09, 2019 2:34 pm

Yep, supposedly I got lucky but I'm not 100% sure yet.
Today I got an email that my membership at PSECU was granted. I called to find out how to transfer money to my membership account and add a CD. While chatting about my options (either add a checking account first or fill out and mail/fax a paper form), he mentioned that the promo rates are ending today but will be honored in my case. As soon as he said it, we got disconnected. I called back. Another rep confirmed that I'm OK as long as I add the CD by the 30th. So, I'll see if that's true. I'm waiting for the trial deposits and as soon as I can verify them I'll call PSECU to get those CD's added. So, I hope I'll be OK.

I'm not surprised about PSECU pulling these promos when I read that some retirees were wiring $350k-$450k!!!

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Re: Best CD rates thread

Post by Kevin M » Sat Nov 09, 2019 2:36 pm

Bluce wrote:
Sat Nov 09, 2019 2:25 pm
Kevin M wrote:
Sat Nov 09, 2019 1:33 pm
Bluce wrote:
Sat Nov 09, 2019 7:52 am
To the thread title: Best CD rates thread

I started a CD ladder in the spring of 2018 with 3, 6, 9, and 12 month new issues from Schwab, within my SEP-IRA (they were between 1.75% and 2.25% as I recall). After a couple came due I replaced one with a 2.75% one year and I thought this is great -- if I get to 3% I will forget about bond funds and just go with CDs.

But that was the end. Rates stabilized and began retreating a bit (this was about a year ago). Then I could buy a 9 month with a higher yield than a 12 month and that was the last one I bought. One more came due but I did not replace it, nor will I replace the remaining three -- the last of which comes due in March.

The rates were all over the place: One month paying more than a 9 or 12 month, etc. I just looked the other day and they're still all messed up, not to mention too low to bother with:

_3 month: 1.610%
12 month: 1.601%

Oh well, it will all go back into bond funds.
With a bond fund you're just taking more term risk, and depending on the type of fund, possibly some credit risk. If you eliminate the credit risk and stick with Treasuries, you're looking at a yield on the 10-year Treasury of 1.94%. Fidelity is offering a 10-year brokered CD with a yield of 2.50%. The 5-year Treasury yield is 1.74%, and Fidelity 5-year CD is 2.20%.

So you still could earn more with a CD ladder than with a Treasury ladder, and a Treasury ladder is comparable to a Treasury bond fund with same maturity/duration characteristics.

Treasuries are much more liquid than CDs though; the bid/ask spreads are tiny--could be one basis point or less--while the bid/ask spread on CDs can be 100 basis points or more. So you wouldn't want to do a CD ladder unless you plan to hold the CDs to maturity.

Also, Treasuries are exempt from state income tax, so that needs to be factored into the analysis for a taxable account subject to state income tax.

And of course as this thread illustrates, you might do significantly better with direct CDs. :mrgreen:

Kevin
This is all within a SEP-IRA so I don't care about taxes, and I'm staying with Schwab's platform to keep it simple. I originally took the CD money out of bond funds, so it'll just go back in as it matures.
In a tax-advantaged account Treasuries provide no state tax exemption benefit, so you can just compare yields directly. Schwab does not appear to have quite as good CD yields as Fidelity, but you still may be able to beat Treasury yields. At Schwab I see 3-year CD at 1.80%, compared to 3-year Treasury at 1.70%, and 5-year CD at 1.95% compared to 5-year Treasury at 1.74%.

Just pointing out that just because the CD yields aren't as high as they were in the past (all yields have come down) doesn't mean that CDs still aren't attractive compared to the alternatives.

Kevin
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Re: Best CD rates thread

Post by deanmoriarty » Sat Nov 09, 2019 2:39 pm

aida2003 wrote:
Sat Nov 09, 2019 2:34 pm
Yep, supposedly I got lucky but I'm not 100% sure yet.
Today I got an email that my membership at PSECU was granted. I called to find out how to transfer money to my membership account and add a CD. While chatting about my options (either add a checking account first or fill out and mail/fax a paper form), he mentioned that the promo rates are ending today but will be honored in my case. As soon as he said it, we got disconnected. I called back. Another rep confirmed that I'm OK as long as I add the CD by the 30th. So, I'll see if that's true. I'm waiting for the trial deposits and as soon as I can verify them I'll call PSECU to get those CD's added. So, I hope I'll be OK.

I'm not surprised about PSECU pulling these promos when I read that some retirees were wiring $350k-$450k!!!
Are you saying that they made an exception just for your account, or that all existing accounts will still be able to open a cd at that promotional rate?

Because my account was approved last week and my ACH is currently in transfer reaching them Monday or Tuesday...

Btw, I didn’t add any checking account, I sent it to the savings account after confirming the trial deposits.
Last edited by deanmoriarty on Sat Nov 09, 2019 2:40 pm, edited 1 time in total.

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Kevin M
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Re: Best CD rates thread

Post by Kevin M » Sat Nov 09, 2019 2:40 pm

aida2003 wrote:
Sat Nov 09, 2019 2:34 pm
Yep, supposedly I got lucky but I'm not 100% sure yet.
Today I got an email that my membership at PSECU was granted. I called to find out how to transfer money to my membership account and add a CD. While chatting about my options (either add a checking account first or fill out and mail/fax a paper form), he mentioned that the promo rates are ending today but will be honored in my case. As soon as he said it, we got disconnected. I called back. Another rep confirmed that I'm OK as long as I add the CD by the 30th. So, I'll see if that's true. I'm waiting for the trial deposits and as soon as I can verify them I'll call PSECU to get those CD's added. So, I hope I'll be OK.
My friend was told the same thing today, so fingers crossed that it works out for you, him, and all the others that are in this transition phase.
aida2003 wrote:
Sat Nov 09, 2019 2:34 pm
I'm not surprised about PSECU pulling these promos when I read that some retirees were wiring $350k-$450k!!!
Yep, $300K into taxable CDs and $227K into an IRA CD. And I was thinking of selling some bond fund shares to add more, but that appears to be off the table now.

Kevin
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travlinman561
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Re: Best CD rates thread

Post by travlinman561 » Sat Nov 09, 2019 7:55 pm

Saw on depositaccounts and psecu website new rates:

RATE CHANGE... new PSECU CD rates effective 5pm Eastern Time 11/9/19. 2yr @ 2.00% APY, 3yr @2.25% APY, 4yr @ 2.40% APY, 5yr @ 2.55% APY

I guess I will be sending my ira funds back to vanguard.

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Re: Best CD rates thread

Post by Kevin M » Sat Nov 09, 2019 8:06 pm

travlinman561 wrote:
Sat Nov 09, 2019 7:55 pm
Saw on depositaccounts and psecu website new rates:

RATE CHANGE... new PSECU CD rates effective 5pm Eastern Time 11/9/19. 2yr @ 2.00% APY, 3yr @2.25% APY, 4yr @ 2.40% APY, 5yr @ 2.55% APY

I guess I will be sending my ira funds back to vanguard.
We have several reports of PSECU saying that they will honor the higher rates if the membership application is in process. I would call them and ask them if they'll honor the rate for the CD you selected on the IRA application or transfer form.

Kevin
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Mark S
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Re: Best CD rates thread

Post by Mark S » Sat Nov 09, 2019 8:54 pm

Spoke to PSECU this morning. If you submitted your app before 5pm today, they said they'd honor the promotional rates.

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Re: Best CD rates thread

Post by Chesterfield » Sat Nov 09, 2019 9:59 pm

Mark S wrote:
Sat Nov 09, 2019 8:54 pm
Spoke to PSECU this morning. If you submitted your app before 5pm today, they said they'd honor the promotional rates.
I was advised that they don't (have never) locked rate nor warrant a guarantee rate request by a sup at the new application department, even though a family's app was approved but not yet opened CD. According to rep, PSECU received A LOT, OVERWHELMING amount of apps that are still being processed so I doubt that they'll be able to make good on everyone's apps that have been submitted but not yet processed. Anyhow, a family member has been approved & fund is scheduled/already on its way arriving on Tuesday (Monday is a holiday). However, it doesn't seem like it will be honored according to rep.
Last edited by Chesterfield on Sat Nov 09, 2019 11:35 pm, edited 1 time in total.

Loon11
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Re: Best CD rates thread

Post by Loon11 » Sat Nov 09, 2019 11:29 pm

I was trying to set up an ach with Marcus and was told by Marcus they wire for free so did that instead on Friday. Did it really end? I was going to put more in when another CD matures. Sorry to hear this.

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Re: Best CD rates thread

Post by MikeG62 » Sun Nov 10, 2019 8:52 am

Loon11 wrote:
Sat Nov 09, 2019 11:29 pm
I was trying to set up an ach with Marcus and was told by Marcus they wire for free so did that instead on Friday. Did it really end? I was going to put more in when another CD matures. Sorry to hear this.
Have you considered the ATS (add-on) feature? If done right you could buy 60 days from opening the CD until the first auto transfer kicks in. Would depend of course on when you upcoming CD matures.
Chesterfield wrote:
Sat Nov 09, 2019 9:59 pm
Mark S wrote:
Sat Nov 09, 2019 8:54 pm
Spoke to PSECU this morning. If you submitted your app before 5pm today, they said they'd honor the promotional rates.
...According to rep, PSECU received A LOT, OVERWHELMING amount of apps that are still being processed so I doubt that they'll be able to make good on everyone's apps that have been submitted but not yet processed.
I don't think they are going to pick and choose. Either they extend the rate for all applications in process or no applications in process. Enough people appear to have been told they are ok as long as their application was in process to suggest it more likely than not the rate will be honored. Also, it is not uncommon for financial institutions to honored CD rates for applications in process. This has been documented many times on these forums. FWIW, I have been told different things by different PSECU CSR's about how the auto transfer would work in the event there was insufficient funds in my share account to satisfy the scheduled transfer amount. In other words, they all do not appear to be on the same page (despite the fact that they are all very nice people). We will find out one way or the other in a few days from those who app's are in process.
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pyld76
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Re: Best CD rates thread

Post by pyld76 » Sun Nov 10, 2019 9:45 am

So, just by dint of explanation: when I asked PSECU about the ability to add to a certificate years ago, it is set up the way it is because they expected people to put in some portion of money at every pay. They didn’t design the process in a way to account for how folks might keep topping up a good deal. I say this because when you ask a CSR what happens when there aren’t funds there, it’s likely a question they never fielded prior to having hot money coming streaming in.

I’d also say this: if they honor new certificate requests for folks who weren’t yet members (and that is how I’d characterize apps in flight) when the offer was yanked, they are going above and beyond.

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Re: Best CD rates thread

Post by mary1492 » Sun Nov 10, 2019 10:01 am

Kevin M wrote:
Sat Nov 09, 2019 2:36 pm
In a tax-advantaged account Treasuries provide no state tax exemption benefit, so you can just compare yields directly. Schwab does not appear to have quite as good CD yields as Fidelity, but you still may be able to beat Treasury yields. At Schwab I see 3-year CD at 1.80%, compared to 3-year Treasury at 1.70%, and 5-year CD at 1.95% compared to 5-year Treasury at 1.74%.

Just pointing out that just because the CD yields aren't as high as they were in the past (all yields have come down) doesn't mean that CDs still aren't attractive compared to the alternatives.
Kevin
Just be sure that you are making an apples-to-apples comparison when looking at CD rates.

Top CD yields in each maturity at Fidelity are for callable CDs, whereas the non-callables are identical to the Schwab ones you present.

I agree with you though - CDs are very good relative to equivalent maturity treasuries.

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Re: Best CD rates thread

Post by MKP » Sun Nov 10, 2019 11:38 am

This is complete garbage...make you wait days to get approved...cannot open a CD until after funds are "received" versus opening a CD and then funding....and then they pull the rates. Thanks PSECU for wasting a significant amount of my time and money.
Last edited by MKP on Sun Nov 10, 2019 11:42 am, edited 1 time in total.

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Re: Best CD rates thread

Post by deanmoriarty » Sun Nov 10, 2019 11:41 am

How would I know if the promo rate is honored for me?

My money is in flight and should be there on Monday or Tuesday. However, if I try now to open a CD account (even if I have less than $500 in there), nowhere on the page it specifies what my rate will be, it just asks me for the duration. I haven’t clicked through the final “purchase” button obviously.

I would like to avoid calling support one more time, this whole thing wasted a massive amount of my time, so if I don’t have a clear way to see what rate will be applied to my account I will just ACH back the money to Marcus and never again will open an account with a CU, they are just not equipped to provide a prompt and clear service.

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Re: Best CD rates thread

Post by MKP » Sun Nov 10, 2019 11:43 am

deanmoriarty wrote:
Sun Nov 10, 2019 11:41 am
How would I know if the promo rate is honored for me?

My money is in flight and should be there on Monday or Tuesday. However, if I try now to open a CD account (even if I have less than $500 in there), nowhere on the page it specifies what my rate will be, it just asks me for the duration. I haven’t clicked through the final “purchase” button obviously.

I would like to avoid calling support one more time, this whole thing wasted a massive amount of my time, so if I don’t have a clear way to see what rate will be applied to my account I will just ACH back the money to Marcus.
Exactly - and I was told over the phone...dont worry the rates are good through the end of November, you dont have to wire funds, and you can wait until your next paycheck to open another certificate.

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Re: Best CD rates thread

Post by MKP » Sun Nov 10, 2019 11:55 am

Also this was absolutely not worth a hard pull on my Experian credit report...

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Re: Best CD rates thread

Post by Kevin M » Sun Nov 10, 2019 1:22 pm

mary1492 wrote:
Sun Nov 10, 2019 10:01 am
Just be sure that you are making an apples-to-apples comparison when looking at CD rates.

Top CD yields in each maturity at Fidelity are for callable CDs, whereas the non-callables are identical to the Schwab ones you present.
Good point!

Similarly, bond yields shown on the Yields summary page are likely to be for maturities slightly longer than indicated. For example, the yield currently shown for a 1-year Treasury is for one maturing on 11/30/2020. And the muni bond yields are likely to be for states and municipalities with more financial challenges than others. So you really do have to drill down to check them out.

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Re: Best CD rates thread

Post by pyld76 » Sun Nov 10, 2019 6:34 pm

deanmoriarty wrote:
Sun Nov 10, 2019 11:41 am
How would I know if the promo rate is honored for me?

My money is in flight and should be there on Monday or Tuesday. However, if I try now to open a CD account (even if I have less than $500 in there), nowhere on the page it specifies what my rate will be, it just asks me for the duration. I haven’t clicked through the final “purchase” button obviously.

I would like to avoid calling support one more time, this whole thing wasted a massive amount of my time, so if I don’t have a clear way to see what rate will be applied to my account I will just ACH back the money to Marcus and never again will open an account with a CU, they are just not equipped to provide a prompt and clear service.
You are likely going to have to call in, because I'd bet good money that the automagic process is going to use the currently posted rates, which aren't the 3% number. I'd actually recommend calling to purchase rather than pushing the button and then trying to get it "fixed." You do the latter, and you likely risk a CD at the lower rate that you may or may not get switched.

I also think that they are absolutely able to provide prompt service--to their membership. Credit unions don't staff their membership departments to deal with huge spikes over the "normal" application pace.

There's some implication in this thread and those DA threads that PSECU somehow pulled something "early." Their CD and rates page both have "Rates and information are subject to change at any time." right there.

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Re: Best CD rates thread

Post by MKP » Sun Nov 10, 2019 8:48 pm

... but out of the other side of their mouth they were saying it was guaranteed until the 30th

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Re: Best CD rates thread

Post by Kevin M » Sun Nov 10, 2019 9:23 pm

My friend is proceeding on the assumption that what the PSECU rep told him (and some who have posted here) is true--that they will honor the rate for him since he got his application in before the deal ended. He got the reps name, but did not get it in writing. I suggested that he try to get it in writing before proceeding.

It will be a stretch for him to get all the money to PSECU this week. It will be coming from Ally, Vanguard and Schwab, none of which have been linked to PSECU yet. Based on posts here, he should be able to do a phone-call wire from Vanguard. Not sure if he will use ACH or wire from Ally and Schwab.

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Re: Best CD rates thread

Post by quisp65 » Mon Nov 11, 2019 4:57 am

Never called these guys up to see if there would be anyway to get an account. But they are 3.37% 120 month with I believe a 90 day EWP. Would be nice to have 4 $50K CDs that I could cancel when needed. I'd take a few day vacation to Denver for that. I have nothing to invest now though.

https://www.depositaccounts.com/banks/e ... html#rates

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Re: Best CD rates thread

Post by international001 » Mon Nov 11, 2019 8:35 am

travlinman561 wrote:
Sat Nov 09, 2019 7:55 pm
Saw on depositaccounts and psecu website new rates:

RATE CHANGE... new PSECU CD rates effective 5pm Eastern Time 11/9/19. 2yr @ 2.00% APY, 3yr @2.25% APY, 4yr @ 2.40% APY, 5yr @ 2.55% APY

I guess I will be sending my ira funds back to vanguard.
I don't understand. Didn't they say they would hold them till Nov 30th? How can you trust a bank that lies?

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Re: Best CD rates thread

Post by MikeG62 » Mon Nov 11, 2019 8:52 am

international001 wrote:
Mon Nov 11, 2019 8:35 am
travlinman561 wrote:
Sat Nov 09, 2019 7:55 pm
Saw on depositaccounts and psecu website new rates:

RATE CHANGE... new PSECU CD rates effective 5pm Eastern Time 11/9/19. 2yr @ 2.00% APY, 3yr @2.25% APY, 4yr @ 2.40% APY, 5yr @ 2.55% APY

I guess I will be sending my ira funds back to vanguard.
I don't understand. Didn't they say they would hold them till Nov 30th? How can you trust a bank that lies?
Rates are of course subject to change at any time (and this is stated on their web site). So no it is not lie. This the reason though why I opened and funded my account (including the CD's) in one day (on Oct 7th).
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Re: Best CD rates thread

Post by pyld76 » Mon Nov 11, 2019 10:28 am

international001 wrote:
Mon Nov 11, 2019 8:35 am
travlinman561 wrote:
Sat Nov 09, 2019 7:55 pm
Saw on depositaccounts and psecu website new rates:

RATE CHANGE... new PSECU CD rates effective 5pm Eastern Time 11/9/19. 2yr @ 2.00% APY, 3yr @2.25% APY, 4yr @ 2.40% APY, 5yr @ 2.55% APY

I guess I will be sending my ira funds back to vanguard.
I don't understand. Didn't they say they would hold them till Nov 30th? How can you trust a bank that lies?
On what medium did they say those rates would be available until November 30th? It isn’t their website, which unambiguously states that “rates and information are subject to change at any time.” That language was there far prior to this rate and during the entirety of the time they offered it.

If a CSR told you they’d honor the rate for you and they don’t? It’s a question of trust. I haven’t seen a soul say that. What -has- been said is that someone on the internet claims a CSR told them that they thought the rates would run to 30-November. If you can point out where an actual representative of the CU said that, I’d love to see it. If they told you something different on the phone and didn’t honor that verbal commitment, I’d love to hear it.

Or, “cite the lie.” Some guy on the internet claiming X does not count.

For those of us who have been members there for awhile, there are a number of recent reasons to question PSECU. That there are folks on the internet unhappy about not being able to exploit a single product from a CU they weren’t already a member of doesn’t rise to that threshold.

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Re: Best CD rates thread

Post by MikeG62 » Mon Nov 11, 2019 12:29 pm

pyld76 wrote:
Mon Nov 11, 2019 10:28 am

For those of us who have been members there for awhile, there are a number of recent reasons to question PSECU.
Would you care to color that comment with more specifics?
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Re: Best CD rates thread

Post by RubyTuesday » Mon Nov 11, 2019 12:30 pm

St. Louis Community Credit Union offering 5 year share certificates at 3% with 180 days EWP
https://www.depositaccounts.com/banks/s ... ty-cu.html

Also:
4 year at 2.75%
3 year at 2.65%
2 year at 2.4%

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Re: Best CD rates thread

Post by RubyTuesday » Mon Nov 11, 2019 12:32 pm

RubyTuesday wrote:
Mon Nov 11, 2019 12:30 pm
St. Louis Community Credit Union offering 5 year share certificates at 3% with 180 days EWP
https://www.depositaccounts.com/banks/s ... ty-cu.html

Also:
4 year at 2.75%
3 year at 2.65%
2 year at 2.4%
Membership eligibility “
MEMBERSHIP
Membership in St. Louis Community Credit Union is open to anyone who lives or works in St. Louis City and those in Franklin and St. Louis County in Missouri and St. Clair, Madison, Monroe, and Jersey Counties in Illinois.

Membership is also open to relatives of those eligible for St. Louis Community membership – including your spouse and children, parents, brothers and sisters, grandparents and grandchildren, aunts and uncles, nieces and nephews, first cousins and legal guardians, as well as step, in-law and legally adoptive relationships.

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Re: Best CD rates thread

Post by nalor511 » Mon Nov 11, 2019 1:40 pm

quisp65 wrote:
Mon Nov 11, 2019 4:57 am
Never called these guys up to see if there would be anyway to get an account. But they are 3.37% 120 month with I believe a 90 day EWP. Would be nice to have 4 $50K CDs that I could cancel when needed. I'd take a few day vacation to Denver for that. I have nothing to invest now though.

https://www.depositaccounts.com/banks/e ... html#rates
I doubt the penalty on the 120mo is only 90 days, and there's no further info on the webpage about how to open it or what the penalty is. It says under penalty, "3MO+", whatever that plus indicates. Unless someone gets the truth-in-savings disclosure which should list the penalty. It says contact a branch. The webpage also looks like about 2002.

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Re: Best CD rates thread

Post by Kevin M » Mon Nov 11, 2019 2:43 pm

nalor511 wrote:
Mon Nov 11, 2019 1:40 pm
quisp65 wrote:
Mon Nov 11, 2019 4:57 am
Never called these guys up to see if there would be anyway to get an account. But they are 3.37% 120 month with I believe a 90 day EWP. Would be nice to have 4 $50K CDs that I could cancel when needed. I'd take a few day vacation to Denver for that. I have nothing to invest now though.

https://www.depositaccounts.com/banks/e ... html#rates
I doubt the penalty on the 120mo is only 90 days, and there's no further info on the webpage about how to open it or what the penalty is. It says under penalty, "3MO+", whatever that plus indicates. Unless someone gets the truth-in-savings disclosure which should list the penalty. It says contact a branch. The webpage also looks like about 2002.
Right. If the EWP is correct, this would be quite a good deal. However, the first hurdle is to open an account. Looking at the FAQs, I see this:
Q: Can I open an account through Online Banking?

A: No. To open an account please visit one of our 10 locations
So short of a trip to Colorado, it appears that this is not an option for most people.

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Re: Best CD rates thread

Post by SlowMovingInvestor » Mon Nov 11, 2019 6:52 pm

I mentioned this before, but let me do so again

https://www.salliemae.com/banking/certi ... -learnmore

Any comment on the 2.35% 1 year rate at Sallie Mae ? Sounds pretty good to me, better than Capital One's 2.20% CD.

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Re: Best CD rates thread

Post by Kevin M » Mon Nov 11, 2019 7:14 pm

SlowMovingInvestor wrote:
Mon Nov 11, 2019 6:52 pm
I mentioned this before, but let me do so again

https://www.salliemae.com/banking/certi ... -learnmore

Any comment on the 2.35% 1 year rate at Sallie Mae ? Sounds pretty good to me, better than Capital One's 2.20% CD.
It is competitive--shows up in 3rd place on DA for 1-year CDs for my "region". If I expand to any state, there are many CDs at higher rates, so a good idea to comb through those to see if any are available to you. Note that the PSECU CDs were not shown as nationally available for some time after they became so.

For comparison, 1y Treasury yield is 1.58%, so CD yields is 77 basis points higher--not bad, but not spectacular. Looks like a brokered CD is in the 1.65% ballpark, the 2.35% CD is a good deal compared to that too.

Of no interest to me, due to my local bank 2.5% savings account guaranteed through Jan 2021, my 3.5% add-on 5-year CD that still has lots of room for additional deposits, and my 3.00% and 3.25% PSECU CDs that I'll be adding to monthly, but for those who don't have such alternatives, it's worth considering.

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Re: Best CD rates thread

Post by nickb » Mon Nov 11, 2019 8:22 pm

I just received an email from PSECU
Our certificate rates were decreased on Saturday, November 9 at 5 p.m. EST.

We will honor current rates for 24-month certificate and 36-month certificate requests for new membership applications submitted before November 9 at 5 p.m. We will also honor prior rates for 24-month certificates and 36-month certificates if you call us before November 30 to open a certificate.

Rates are subject to change at any time. We strive to help all members reach their financial goals through every stage of life.

If you have any questions, please call us at 800.237.7328, extension 3036.

Thank you for your membership.

Sincerely,
Your Team at PSECU

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Re: Best CD rates thread

Post by Utvolfan1 » Mon Nov 11, 2019 8:35 pm

I just received the following email from PSECU:
Our certificate rates were decreased on Saturday, November 9 at 5 p.m. EST.

We will honor current rates for 24-month certificate and 36-month certificate requests for new membership applications submitted before November 9 at 5 p.m. We will also honor prior rates for 24-month certificates and 36-month certificates if you call us before November 30 to open a certificate.

Rates are subject to change at any time. We strive to help all members reach their financial goals through every stage of life.

If you have any questions, please call us at 800.237.7328, extension 3036.

Thank you for your membership.

Sincerely,
Your Team at PSECU

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Re: Best CD rates thread

Post by SlowMovingInvestor » Mon Nov 11, 2019 8:36 pm

Kevin M wrote:
Mon Nov 11, 2019 7:14 pm
SlowMovingInvestor wrote:
Mon Nov 11, 2019 6:52 pm
I mentioned this before, but let me do so again

https://www.salliemae.com/banking/certi ... -learnmore

Any comment on the 2.35% 1 year rate at Sallie Mae ? Sounds pretty good to me, better than Capital One's 2.20% CD.
It is competitive--shows up in 3rd place on DA for 1-year CDs for my "region". If I expand to any state, there are many CDs at higher rates, so a good idea to comb through those to see if any are available to you. Note that the PSECU CDs were not shown as nationally available for some time after they became so.

For comparison, 1y Treasury yield is 1.58%, so CD yields is 77 basis points higher--not bad, but not spectacular. Looks like a brokered CD is in the 1.65% ballpark, the 2.35% CD is a good deal compared to that too.

Of no interest to me, due to my local bank 2.5% savings account guaranteed through Jan 2021, my 3.5% add-on 5-year CD that still has lots of room for additional deposits, and my 3.00% and 3.25% PSECU CDs that I'll be adding to monthly, but for those who don't have such alternatives, it's worth considering.

Kevin
Thanks, Kevin. I do have the PSECU CDs for 2 and 3 year CDs that I could add to, but I am looking for something in the 1 year range. There are credit unions with higher rates that might be available to me, so I might look at them too.

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Re: Best CD rates thread

Post by MikeG62 » Tue Nov 12, 2019 7:46 am

nickb wrote:
Mon Nov 11, 2019 8:22 pm
I just received an email from PSECU

...We will also honor prior rates for 24-month certificates and 36-month certificates if you call us before November 30 to open a certificate.
So does this mean any existing customer can open another 24 or 36 month CD if calling before Nov 30th?

That's the way I am interpreting it, but wondering if there is any other interpretation?
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Re: Best CD rates thread

Post by indexfundfan » Tue Nov 12, 2019 7:59 am

MikeG62 wrote:
Tue Nov 12, 2019 7:46 am
nickb wrote:
Mon Nov 11, 2019 8:22 pm
I just received an email from PSECU

...We will also honor prior rates for 24-month certificates and 36-month certificates if you call us before November 30 to open a certificate.
So does this mean any existing customer can open another 24 or 36 month CD if calling before Nov 30th?

That's the way I am interpreting it, but wondering if there is any other interpretation?
It does say it is for "new membership applications".
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Re: Best CD rates thread

Post by MKP » Tue Nov 12, 2019 8:25 am

my application got approved on Nov 6th. Got the email over the weekend and called in just now and opened the 3 yr CD. Going to call back when some additional funds come in and get the 5 yr before the 30th.

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Re: Best CD rates thread

Post by indexfundfan » Tue Nov 12, 2019 8:32 am

MKP wrote:
Tue Nov 12, 2019 8:25 am
my application got approved on Nov 6th. Got the email over the weekend and called in just now and opened the 3 yr CD. Going to call back when some additional funds come in and get the 5 yr before the 30th.
I'm glad they made things right for you. I had a similar experience with AgFed CU a few months ago. On the day I received the account number, they had pulled the special CD offer. I called in and they honored the prior CD rate.
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