CD rates am I right here?

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Russ Smith

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I was going to mention similarly that VMFXX is at 4.78% right now. It's where I've been parking cash lately. The rate isn't locked like with a CD but I think we still have another rate hike or two on the horizon and we're not going to be seeing cuts for a bit.

I have a former employers 401K and it's actually a Roth but for some reason Vanguard won't let me put the money in VMFXX it's not in the approved list. They said I have to do some paperwork to get access to that fund.

A little annoying.
 
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Russ Smith

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I bond fixed rate 0.9%, I'm in!

Yeah I saw that. I wish you could do more than 10K but it's a good deal still.

If I could find a 2 year CD paying 5% I would snap it up but nobody seems to have one at least not a bank I feel safe with . Marcus has a 20 month for 4.35 and it's got a free bump so if the rate goes up they raise you up for free, once, but would like it higher than 4.35. They have a 10 month for 5.05 that I am interested in but haven't done yet.

Mentioned before there's a youtube lady called Diamond Nest Egg that's really good for this sort of thing. It's not just that she knows about stuff, she has a network of viewers who tell her hey I found this CD or that high yield savings and then she verifies them so you get good info from it.
 

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I have a former employers 401K and it's actually a Roth but for some reason Vanguard won't let me put the money in VMFXX it's not in the approved list. They said I have to do some paperwork to get access to that fund.

A little annoying.
Ouch, that sucks. I have my IRAs with Vanguard and they use VMFXX as the settlement fund for them. So pretty much everything is automatically in it that's not in fund or stock. My 401k has mostly Vanguard funds in it too and includes it too. Looks like I'm lucky on that front.
 
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Russ Smith

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Capital One raised the 360 High Yield Savings from 3.5 to 3.75 so they gave us the full .25 bump from the fed rate. Not bad, still not the highest but better than many.
 

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I know I see many posts about an Apple Savings account that is either 4.15% through Goldman Sachs
 

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Savings Accounts that are supposed to be 5%: Five percent rates for savings accounts

I went to the Mango site listed in the list above, and they claim they are up to 6% rate on as little as $25 in an account.% is above market rates which means they are subsidizing it to attract depositors which is common. They admit to this on their site.


6% is above market rates so they are subsidizing the yield to attract depositors. Sort of like a high intro CD rate.

They admit to it here, but they also say the 6% is only offered up to $2500 and then it plummets to 0.10%. It's not worth your time in my opinion.

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That's a novel approach. Lots of banks now are giving a lump-sum cashback bonus if you keep a balance of X for at least Y months, so this is similar. Say they honor the 6% for a year, that puts them on the hook for $150, not a bad investment to attract a lifelong customer.
 

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That's a novel approach. Lots of banks now are giving a lump-sum cashback bonus if you keep a balance of X for at least Y months, so this is similar. Say they honor the 6% for a year, that puts them on the hook for $150, not a bad investment to attract a lifelong customer.

A word on this for others: Most discount brokers will offer you cash bonuses to consolidate outside assets that will credit after a determined holding period of typically 90 days. Cash offers typically range from $100 to $1K depending on the amount. So before you just transfer over an amount of 20K or more, check with your broker.
 
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Russ Smith

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I know I see many posts about an Apple Savings account that is either 4.15% through Goldman Sachs

Yeah I mentioned the APple one it seems to be an excellent deal. I don't have an iPhone and you can't do it without an iPhone near as I can tell.

4.15 is quite good right now.
 
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Russ Smith

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Revisiting this. Capital One increased the 360 Savings rate to 3.4% on Friday. And I just discovered they have, for about 6 more weeks, an offering on a 11 month CD at 5%. So I just transferred 25K from my 360 savings to a new CD at 5%. It says that rate will stop being offered sometime in March. It's the best rate they have, the 2 year is 4.3, even the 5 year is only 4.1 so I jumped on the 11 month one.

I don't have a true "CD ladder" but as of now I have a CD that matures in Sep 2023 and then 2 newer ones that mature in Jan of 2024. My plan is to merge 2 of those in Jan probably into another CD(depending on rates) and put the one maturing in Sept, into my savings

So from Feb 4 being 3.4 to June 4 they bumped it again to an even 4. So up .6 in 4 months on the 360 savings. If I go back through this thread I was all excited when the 1 year CD hit 4 which was Oct 2022. 8 months later the high yield savings is at 4. I have a CD with them at 5 that ends in Jan, their highest right now is 1 year 4.75 so from Oct to now the 1 year CD rate has gone up .75 and the high yield savings has gone up 1.65!


We're moving around money now about to put some money in a Wells Fargo 5 month CD at 4.4%. It's already in Wells Fargo and we figure that rate is pretty darn good for 5 months.
 

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So from Feb 4 being 3.4 to June 4 they bumped it again to an even 4. So up .6 in 4 months on the 360 savings. If I go back through this thread I was all excited when the 1 year CD hit 4 which was Oct 2022. 8 months later the high yield savings is at 4. I have a CD with them at 5 that ends in Jan, their highest right now is 1 year 4.75 so from Oct to now the 1 year CD rate has gone up .75 and the high yield savings has gone up 1.65!


We're moving around money now about to put some money in a Wells Fargo 5 month CD at 4.4%. It's already in Wells Fargo and we figure that rate is pretty darn good for 5 months.

At this point would it make more sense to put the money into a high yield savings since the percentages are close? I prefer to stay more to the liquid side if things are close and I don't think we're going to see a rate drop any time soon. There's already been rumblings that the Fed is going to raise rates in July, maybe 50 BP.
 
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At this point would it make more sense to put the money into a high yield savings since the percentages are close? I prefer to stay more to the liquid side if things are close and I don't think we're going to see a rate drop any time soon. There's already been rumblings that the Fed is going to raise rates in July, maybe 50 BP.

Complicated but Lucy wants to keep the money in Wells Fargo. We had it in a Wells Fargo managed brokerage account, the problem is we're on like our 5th manager with WF because they either keep leaving or getting reassigned, and our current manager, is in Wisconsin and we're in Sunnyvale CA. So we decided to close the brokerage account and put the money in a CD for 5 months.

I'm not 100% sure but I think we have about 20K in profit between initial deposit in 2017 and now. Some of that has already been taxed when they sold in prior years, but most of it hasn't so I'm figuring it makes sense to take that tax hit this year since I'm "retired" and not really earning much money now. So this is the right year to take the tax hit on the brokerage. IF I end up going back to work, which could happen, I'd still only have 6 months or so of earnings so better to take it this year.

To get the 4 percent in the high yield I have to move the money to Capital One, Lucy prefers it stay in WF and the best way to get interest is then a CD thus the 5 month one.

We're not trying to time the market we're at a point where if we retire soon or now, it becomes more valuable to us as cash since I'm only 57 1/2 so I can't start withdrawing from my IRA or 401K for 2 years without paying a penalty.

I do agree on the could go up. Lucy has a CD with WF right now herself that's getting 4.17 which comes out to 4.25, I think it's 11 months I forget. At that time the 5 month was not even close to 4.4. So if we do this now, in November we'll be again shopping for the highest CD rate unless we just decide screw it and retire in which case then the highest high yield.

Sorry wordy but that's the "logic" behind it.
 

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Complicated but Lucy wants to keep the money in Wells Fargo. We had it in a Wells Fargo managed brokerage account, the problem is we're on like our 5th manager with WF because they either keep leaving or getting reassigned, and our current manager, is in Wisconsin and we're in Sunnyvale CA. So we decided to close the brokerage account and put the money in a CD for 5 months.

I'm not 100% sure but I think we have about 20K in profit between initial deposit in 2017 and now. Some of that has already been taxed when they sold in prior years, but most of it hasn't so I'm figuring it makes sense to take that tax hit this year since I'm "retired" and not really earning much money now. So this is the right year to take the tax hit on the brokerage. IF I end up going back to work, which could happen, I'd still only have 6 months or so of earnings so better to take it this year.

To get the 4 percent in the high yield I have to move the money to Capital One, Lucy prefers it stay in WF and the best way to get interest is then a CD thus the 5 month one.

We're not trying to time the market we're at a point where if we retire soon or now, it becomes more valuable to us as cash since I'm only 57 1/2 so I can't start withdrawing from my IRA or 401K for 2 years without paying a penalty.

I do agree on the could go up. Lucy has a CD with WF right now herself that's getting 4.17 which comes out to 4.25, I think it's 11 months I forget. At that time the 5 month was not even close to 4.4. So if we do this now, in November we'll be again shopping for the highest CD rate unless we just decide screw it and retire in which case then the highest high yield.

Sorry wordy but that's the "logic" behind it.

Makes sense. Well, all except for the part about Lucy being loyal to WF. ;)

From what you're saying it sounds like this will be a good year for you to harvest all of your gains. Do it while you're in the lower brackets due to not working.
 
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Makes sense. Well, all except for the part about Lucy being loyal to WF. ;)

From what you're saying it sounds like this will be a good year for you to harvest all of your gains. Do it while you're in the lower brackets due to not working.

Yeah the loyalty thing is hard to fight. If you knew how long it took me to get her to move money out of savings getting almost nothing at WF, to a CD. We did it in the bank and the guy at least 3 times kind of politely said yes I think it's a very good idea this is too much money to NOT have it in something taking advantage of the interest rates today. She now tells me every month when we get the statement from WF that it's doing well. It was the first good CD rate I saw at WF could not convince her to let me open an account anywhere else.
 
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Looks like great timing on the CD with WF. It turns out you can't get the 4.4 rate in the bank it's only an online offer, so I signed up online today. I just got a confirmation with all the documentation and if I'm reading that right the actual rate is 4.65 not 4.4 so it must have gone up today or yesterday. They have a 12 month for 4.75 we were going to do that but didn't want to tie up the money for that long if we didn't have to so getting only .1 less for 5 months is perfect. An extra 56 bucks for 5 months with the higher interest.

I also finally got WF to agree with me on my checking and savings. When I signed up they had some rule that required me to have at least 300 dollars in the savings, which pays almost no interest. If you go under 300 they fine you 10 bucks a month. But there's no way online to close that account and transfer it to checking, if you do, they fine you every month for not having 300 in the account. I finally got someone on the phone who admitted that's correct and agreed I shouldn't have to go in to move that small of an amount so she closed the account for me and put the money in my checking. I always forget about it when we're there because we're using the ATM not inside the bank.
 
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Russ Smith

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I finally got around to dealing with my Vanguard Roth 401K from my former employer so I had more options than just a target account. Took 3 tries but I got to the person who really knew what was up and it turns out only about 60% of my money was actually already taxed, all the employer contributions (matching) are pre tax, and I had actually rolled over money from before we were bought out and forgot about that and that was all pre tax.

So end of next week I'll have 2 new IRA's one Roth one not both allowing me to do money markets, brokered CD's and eventually stocks if I want to.

It is funny it seems like such a pain for a 15 minute phone call with 3 different people but in the old days before internet and e signature this whole thing would have taken weeks.

So end of next week I should finally be able to put those funds into some short term stuff other than stocks. Once I hit 59 1/2(about 2 years) it's the first savings I'll be spending, at least the Roth portion is since it's already been taxed
 
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Russ Smith

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And Capital One upped the 360 Savings rate again, now at 4.1

If we have 2 more 25 basis point rate hikes in the future, as the fed hinted, we may see 4.5% in it.
 
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Not bad for the middle of July. in our 3 CD's and one high yield savings with Capital One we've earned $2026.90 in interest already this year! And it should be higher the rest of the year because the one that renews in Sep is only 3.25% right now but will be paying more like 4.75 when it renews. Might see 4K in interest this year with no risk.
 
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Capital One bumped the 360 Savings to 4.3% now.

And we just did an 11 month CD today at Wells Fargo that's going to pay I think 4.76%. It said 4.5 something but then like our 5 month one because we already have accounts we get a higher rate, think it's 4.76.
 
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FYI if you have etrade, the recent merge with Morgan Stanley is complete and they just opened a high yield savings account that's paying 4.25% with no minimum deposit and no minimum balance. We had a savings account in ours where we just dump the money from dividends on stocks owned, I never did the auto reinvest not sure why but I just took that money and opened a high yield and put it there. It's less than 1000 dollars so we'll get like 3-4 bucks a month in interest but it's great that Etrade now has that.

The application is a bit long for some reason they ask you all sorts of employment and income questions which makes no sense for an existing Etrade customer but the whole thing took 5 minutes.
 
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Not sure for how long but Capital One now has a 18 month CD paying 5.15%.

I have one maturing in about 5 weeks and if that rate is still there then, I will put that money right into it.
 

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It looks like 12-18 months is the sweet spot on the yield curve right now. Brokered CD rates at Vanguard right now should be the same inventory at all brokers.

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It looks like 12-18 months is the sweet spot on the yield curve right now. Brokered CD rates at Vanguard right now should be the same inventory at all brokers.

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Dang, those are above the 7 day yield on VMFXX now. It's at 5.26%. It's getting tempting.
 
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