CD rates am I right here?

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Russ Smith

Russ Smith

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My first CD at Capital One matures I think 9-28. If things hold up they have an 18 month 5.25 option still available. My current plan is to put 6K of it into the high yield savings at 4.3 and the other 20 in a 18 month CD. We have 2 more maturing in January I doubt that 5.25 18 month will still be available then.

The maturing CD is making 3.25 so I'll get an extra 2 percent on 20K of it and 1 percent on the other 6 so I'll be bringing home another 20 to 30 dollars in interest a month on the exact same money. The only reason I'm not putting the whole amount back into a CD is that I'm currently only putting away 500 a month into the savings account so I wanted to pump it up a bit with the 6K just to increase my emergency fund.
 
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Russ Smith

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My first CD at Capital One matures I think 9-28. If things hold up they have an 18 month 5.25 option still available. My current plan is to put 6K of it into the high yield savings at 4.3 and the other 20 in a 18 month CD. We have 2 more maturing in January I doubt that 5.25 18 month will still be available then.

The maturing CD is making 3.25 so I'll get an extra 2 percent on 20K of it and 1 percent on the other 6 so I'll be bringing home another 20 to 30 dollars in interest a month on the exact same money. The only reason I'm not putting the whole amount back into a CD is that I'm currently only putting away 500 a month into the savings account so I wanted to pump it up a bit with the 6K just to increase my emergency fund.

Looks like almost 110 a month at those rates, I get about 69 a month now at 3.25. So nearly 40 bucks a month more with the same money.
 
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Russ Smith

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My fun with CD's continues. With the rates staying the same my CD at 3.25% matured today. I had about 26K in it. So I put 6K in the high yield savings at 4.3% and the 20 in an 18 month CD at 5.25%, both at Capital One. I was considering waiting to see if there's another rate hike but decided I didn't want to get greedy.

18 months is the sweet spot, 12 is 5%, 24 is 4.4.

We have 2 CD's that mature in January I now have "some" hope we may still be able to get 5 or more on those. One is actually getting 5 right now, the other 2.5.
 

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My fun with CD's continues. With the rates staying the same my CD at 3.25% matured today. I had about 26K in it. So I put 6K in the high yield savings at 4.3% and the 20 in an 18 month CD at 5.25%, both at Capital One. I was considering waiting to see if there's another rate hike but decided I didn't want to get greedy.

18 months is the sweet spot, 12 is 5%, 24 is 4.4.

We have 2 CD's that mature in January I now have "some" hope we may still be able to get 5 or more on those. One is actually getting 5 right now, the other 2.5.
I think you're going to be good in January. After the last meeting I'd be shocked if we see a rate cut before then. I actually wouldn't be surprised if we see another 25 BP increase by then. So you might be able to get a little more.
 

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My fun with CD's continues. With the rates staying the same my CD at 3.25% matured today. I had about 26K in it. So I put 6K in the high yield savings at 4.3% and the 20 in an 18 month CD at 5.25%, both at Capital One. I was considering waiting to see if there's another rate hike but decided I didn't want to get greedy.

18 months is the sweet spot, 12 is 5%, 24 is 4.4.

We have 2 CD's that mature in January I now have "some" hope we may still be able to get 5 or more on those. One is actually getting 5 right now, the other 2.5.

In January, I have some CDs maturing as well.

I recently learned that the penalty on the early withdrawal of a CD is 6 months of interest instead of 3 months of interest if the CD is over 12 months. It would have been nice to know, but it didn't affect me.

I'm curious about Capital One 360 CDs and how they work.

Admittedly, I have been reluctant about using online banks. How do you know if you are dealing with a legit URL?
 
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Russ Smith

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In January, I have some CDs maturing as well.

I recently learned that the penalty on the early withdrawal of a CD is 6 months of interest instead of 3 months of interest if the CD is over 12 months. It would have been nice to know, but it didn't affect me.

I'm curious about Capital One 360 CDs and how they work.

Admittedly, I have been reluctant about using online banks. How do you know if you are dealing with a legit URL?


Yes over 12 months the penalty is 6 months.

This is the URL for Capital One I use, at least it's the one I used last night that's now logged out.


I have never had any issue at all with them, my credit card is with them too. Obviously with online there's always some risk but never had an issue.

Because I have multiple accounts with them I was able to open the new CD in less than 5 minutes, took the money from a savings account with them to fund it. If you're a first time customer it takes longer than that with approvals and then they have to fund the account which can take 2-3 days.
 

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Yes over 12 months the penalty is 6 months.

This is the URL for Capital One I use, at least it's the one I used last night that's now logged out.


I have never had any issue at all with them, my credit card is with them too. Obviously with online there's always some risk but never had an issue.

Because I have multiple accounts with them I was able to open the new CD in less than 5 minutes, took the money from a savings account with them to fund it. If you're a first time customer it takes longer than that with approvals and then they have to fund the account which can take 2-3 days.

Looking at the link it sounds like I would have to make an account first. I do have a Capitol One card, so that may make it easier.

Possibly I already have a Sign-In but I will have to search my records. I'm looking at joint accounts.
 
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Russ Smith

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based on expected core inflation data this thurs, expected at 3.5, experts are saying it's likely the fed won't lower interest rates until Q3 2024 at the earliest.

That's in line with forecasts the last few months. It will be interesting to see when banks start lowering CD and high yield interest rates. Will they wait for the first rate cut or do it before then?

Looking more and more like I'll be able to get close to 5% at 18 months in Jan when my next 2 CD's mature. I got 5.25 for 18 months in Sept, that's down to 5 now for 18 months. Really hoping that holds through January so I can get 18 months at 5 .

But it sounds like by probably July 2024 rates will start coming down.
 

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Gold up 11% YTD. If you don't know about it, the best way for small individual investors to get into gold is the GLDM etf. They take only 0.1% per year for management.
 

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Gold up 11% YTD. If you don't know about it, the best way for small individual investors to get into gold is the GLDM etf. They take only 0.1% per year for management.

I was unaware that State Street launched that fund. I'm still in IAU from iShares with its 0.25% expense ratio. I will have to take a look at it and review my basis.
 
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not sure why as rates seem to have stabilized but Capital One just raised the 360 savings high yield account again, now 4.35%
 
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Another cool new deal this one from Wells Fargo.

If you put in more than 10K in new money and keep it over 10K you can get 4.6% for 12 months. It's a high yield not a CD, you can withdraw up to 10% per month without penalty, but you have to keep the balance above 10K while doing it.

I can't see it on their website but we were in the branch this morning because one of Lucy's CD's matured and we were reupping(7 months 5.01%) and the guy who did it told us about the offer and it's on their tv screens in the branch.

I'm probably going to move my 4.35 Capital One High Yield over to Wells Fargo for this deal. The per month difference isn't that big but the high yield with Capital One doesn't have a 12 month guarantee if the balance is 10K like the WF one does.

It appears you have to do it in person can't do it online.
 
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CapitalOne had 12 month CD rates of 5.25% the last time I looked.

Yeah I have one and am about to renew 2 cd's combined into 1 at 18 months 5%.

But I also have a high yield that once I've done the CD, I will move the high yield to this WF offer assuming it's still available. One CD matured on the 4th I have it in my high yield now, the 2nd one matures 1/15 then I'll combine both balances into a new CD and then move the high yield to WF.

Still really good deals on both CD's and high yield right now. The key to the WF one is I can lock in the rate for 12 months AND be able to withdraw from it as long as I stay over 10k in balance.
 

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A couple weeks ago I threw some money into Merrill Edge's Preferred Deposit money market at 5.15%.
VMFXX (vanguard's money market) still has a 7 day yield of 5.29%. Roughing it out it looks like my monthly dividend has been in the 5.25-5.35% APR range for at least the last half of the year.
 

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I just found a CD made out to me for 4,300 bucks at a 5.8% rate that was issued in… 1991. It’s been sitting in my mom’s security box, completely forgotten for… well, around 33 years.

Pretty sure it’s the sum total of bar mitzvah money. Only problem is it was from First Interstate which was bought by Wells Fargo years ago and they now say they have no record of it. So, now I have to go through the State Of AZ’s Unclaimed Property Department to try and collect on that.

Anyone here ever have to deal with that kind of headache or have any idea how I’d calculate what that might be worth today as it’s never been cashed/deposited?
 

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I just found a CD made out to me for 4,300 bucks at a 5.8% rate that was issued in… 1991. It’s been sitting in my mom’s security box, completely forgotten for… well, around 33 years.

Pretty sure it’s the sum total of bar mitzvah money. Only problem is it was from First Interstate which was bought by Wells Fargo years ago and they now say they have no record of it. So, now I have to go through the State Of AZ’s Unclaimed Property Department to try and collect on that.

Anyone here ever have to deal with that kind of headache or have any idea how I’d calculate what that might be worth today as it’s never been cashed/deposited?
First interstate was still in business and had branches all over South Dakota and North Dakota when I was there 3.5 years ago….. wouldn’t they still have to honor that? Or am I dumb?

 
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Shane

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I don’t really understand the whole CD appeal with what the rates are currently…. I’m using Marcus. They are paying 4.5% with no length of deposit obligations or penalties for withdrawing in their high yield online savings account. Then I’ve referred 5 people in The last year each referral giving me a 1% bump for 3 months for a total of 15 months at 5.5% or more if it goes up or down if it drops a little. But my money isn’t stuck there with possible penalty if by some chance I need it.
 

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First interstate was still in business and had branches all over South Dakota and North Dakota when I was there 3.5 years ago….. wouldn’t they still have to honor that? Or am I dumb?

It’s just the name, not the original institution.
 

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I just found a CD made out to me for 4,300 bucks at a 5.8% rate that was issued in… 1991. It’s been sitting in my mom’s security box, completely forgotten for… well, around 33 years.

Pretty sure it’s the sum total of bar mitzvah money. Only problem is it was from First Interstate which was bought by Wells Fargo years ago and they now say they have no record of it. So, now I have to go through the State Of AZ’s Unclaimed Property Department to try and collect on that.

Anyone here ever have to deal with that kind of headache or have any idea how I’d calculate what that might be worth today as it’s never been cashed/deposited?
I don't know the CD end of it but I've done AZ Unclaimed Property. I found that I had something in it last fall and submitted a claim. It was towards the end of October that I sent in the paperwork. You have to get one of them notarized and send in IDs. After that it was a waiting game and they're slow. They have 120 days from submission to resolve your case and it took all of it. In February I found a check for like $1800 in my mailbox for it. Ended up being most home insurance rebates from my previous house.
 

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I don't know the CD end of it but I've done AZ Unclaimed Property. I found that I had something in it last fall and submitted a claim. It was towards the end of October that I sent in the paperwork. You have to get one of them notarized and send in IDs. After that it was a waiting game and they're slow. They have 120 days from submission to resolve your case and it took all of it. In February I found a check for like $1800 in my mailbox for it. Ended up being most home insurance rebates from my previous house.
Yeah… that’s my first recourse of action. The biggest issue is them will be the ID process where they require “proof of residence, utility bill, pay stub, medical bills, etc etc” FROM THE TIME the CD was purchased…. when I was 15. As if a) 15 year olds got utility bills, pay stubs, med bills in their name AND b) STILL had ANY of those 30 years later. I DO have a couple Savings Bonds from 1989 that have my name and address on them from the same bank, so I’m hoping one of those with a copy of license and social security card suffice.

But if the state says they were never transferred the CD post First Interstate sale to Wells Fargo, then I likely have to take Wells Fargo to court. An annoying process but one I’ll have to be doggedly determined to follow through because it’s potentially a pretty big chunk of change from out of nowhere.
 

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Yeah… that’s my first recourse of action. The biggest issue is them will be the ID process where they require “proof of residence, utility bill, pay stub, medical bills, etc etc” FROM THE TIME the CD was purchased…. when I was 15. As if a) 15 year olds got utility bills, pay stubs, med bills in their name AND b) STILL had ANY of those 30 years later. I DO have a couple Savings Bonds from 1989 that have my name and address on them from the same bank, so I’m hoping one of those with a copy of license and social security card suffice.

But if the state says they were never transferred the CD post First Interstate sale to Wells Fargo, then I likely have to take Wells Fargo to court. An annoying process but one I’ll have to be doggedly determined to follow through because it’s potentially a pretty big chunk of change from out of nowhere.
Hopefully those bonds work. I was lucky on the docs. Just did the form, SS card, and my license. I still had my previous license with that house's address on it so I used it over my current one.
 
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