Is it a good time to buy CD (Certificate Deposits)?

[Carrera911]

I was checking out CD's earlier today and was surprised to see they climb up to 2.75% APY for a 5 year deposit.
I know 5 years is a lot but still 2.75% is not that bad. What do you guys think would you invest into a 5 year CD today ?

[Dan Pierce]

Sorry, that I can't answer. However, my band is releasing a CD in June and that would be a perfect time to buy.
dP

[AzPaul]

By recent standards, no, not that bad.
But still not a rate to be happy about.
We all have different needs, risk tolerances, etc, so I can only speak for myself, but that number isn't anywhere near the rate I'd be willing to lend them money at.

[MonBK]

Originally Posted by Dan Pierce

Sorry, that I can't answer. However, my band is releasing a CD in June and that would be a perfect time to buy.
dP

Just say the word Dan and I'll buy one.

[imperio]

Originally Posted by Carrera911

I was checking out CD's earlier today and was surprised to see they climb up to 2.75% APY for a 5 year deposit.
I know 5 years is a lot but still 2.75% is not that bad. What do you guys think would you invest into a 5 year CD today ?

I wouldn't...

[tyler1980]

i wouldn't tie money up that long for that amount of return. Id rather make somewhere around 1/2 of that in a savings account if you are going ultra conservative with risk.

[GradyPhilpott]

Originally Posted by Dan Pierce

Sorry, that I can't answer. However, my band is releasing a CD in June and that would be a perfect time to buy.
dP

Make sure you post all the details in June, because I'll buy one for sure.

How much for an autographed one?

[bdex75]

Originally Posted by Dan Pierce

Sorry, that I can't answer. However, my band is releasing a CD in June and that would be a perfect time to buy.

dP

Let us know when it is out!!!


As to the OP question, nope. In a rising rate environment I have a feeling you will regret that move.


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[Wcdhtwn]

Originally Posted by tyler1980

i wouldn't tie money up that long for that amount of return. Id rather make somewhere around 1/2 of that in a savings account if you are going ultra conservative with risk.

What bank has a savings account paying 1.375? I have a savings account at Chase with almost $60K in it and my monthly interest payment is .53. Yes, 53 cents. It’s purpose is an emergency/ rainy day fund so don’t want to tie it up, or move it to my brokerage account where it’s harder to access, but I’d love to get a better rate.


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[tyler1980]

Originally Posted by Wcdhtwn

What bank has a savings account paying 1.375? I have a savings account at Chase with almost $60K in it and my monthly interest payment is .53. Yes, 53 cents. It’s purpose is an emergency/ rainy day fund so don’t want to tie it up, or move it to my brokerage account where it’s harder to access, but I’d love to get a better rate.


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my AMEX savings account is 1.44%

[walds11]

Originally Posted by tyler1980

my AMEX savings account is 1.44%

My Ally Bank online savings account is the same rate

[.brian.]

Originally Posted by Wcdhtwn

What bank has a savings account paying 1.375?

https://www.bankrate.com/banking/savings/rates/

[Wcdhtwn]

Originally Posted by tyler1980

my AMEX savings account is 1.44%

Originally Posted by walds11

My Ally Bank online savings account is the same rate

Originally Posted by .brian.

https://www.bankrate.com/banking/savings/rates/

I'm getting hosed at Chase...

How do you guys like the virtual bank concept? Mail in a check and not have a physical location to visit? I've never taken this path as it seems with the high rate of interest there have to be some drawbacks and limits on the money being completely accessible. Something about being able to see a person makes me feel better. But for 1.44 vs. .01 I might get over this.

[tyler1980]

Originally Posted by Wcdhtwn

I'm getting hosed at Chase...

How do you guys like the virtual bank concept? Mail in a check and not have a physical location to visit? I've never taken this path as it seems with the high rate of interest there have to be some drawbacks and limits on the money being completely accessible. Something about being able to see a person makes me feel better. But for 1.44 vs. .01 I might get over this.

i don't do any branch banking so its not an issue for me. Its AMEX and its not some random internet bank as those do tend to offer higher rates too. I can transfer money to/from checking accounts like any other savings accounts so i am pretty happy with it.

[Naples09]

Originally Posted by Dan Pierce

Sorry, that I can't answer. However, my band is releasing a CD in June and that would be a perfect time to buy.
dP

I see a TRF group buy in our future!

[Thatguy]

Originally Posted by Wcdhtwn

I'm getting hosed at Chase...



How do you guys like the virtual bank concept? Mail in a check and not have a physical location to visit? I've never taken this path as it seems with the high rate of interest there have to be some drawbacks and limits on the money being completely accessible. Something about being able to see a person makes me feel better. But for 1.44 vs. .01 I might get over this.

No mailing checks for me. I just snap a pic to deposit.


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[walds11]

Originally Posted by Wcdhtwn

I'm getting hosed at Chase...

How do you guys like the virtual bank concept? Mail in a check and not have a physical location to visit? I've never taken this path as it seems with the high rate of interest there have to be some drawbacks and limits on the money being completely accessible. Something about being able to see a person makes me feel better. But for 1.44 vs. .01 I might get over this.

Yep, get over it. You are leaving a lot of money on the table.

Originally Posted by Thatguy

No mailing checks for me. I just snap a pic to deposit.


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Exactly

[Letsgodiving]

I'm currently buying 2 yr CD's. Not much lower than 5 yr rates and doesn't tie the money up too long with rates likely to increase.

[imperio]

Originally Posted by Wcdhtwn

What bank has a savings account paying 1.375? I have a savings account at Chase with almost $60K in it and my monthly interest payment is .53. Yes, 53 cents. It’s purpose is an emergency/ rainy day fund so don’t want to tie it up, or move it to my brokerage account where it’s harder to access, but I’d love to get a better rate.


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Discover, Ally, Capital One, the list goes on... I believe theyre currently at 1.5%apy

[77T]

Originally Posted by Carrera911

I was checking out CD's earlier today and was surprised to see they climb up to 2.75% APY for a 5 year deposit.
I know 5 years is a lot but still 2.75% is not that bad. What do you guys think would you invest into a 5 year CD today ?

If you want to start now, but are concerned a better rate will come around, and want safety all the while - consider an old-fashioned solution - a CD Ladder system of investing.

https://www.bankrate.com/finance/cd/...-worth-it.aspx


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[Wcdhtwn]

Originally Posted by Thatguy

No mailing checks for me. I just snap a pic to deposit.


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Cool... I didn't think of that. So you write a check to yourself from your bank and just use the app of the institution where the savings account is and that's it?

[Thatguy]

Originally Posted by Wcdhtwn

Cool... I didn't think of that. So you write a check to yourself from your bank and just use the app of the institution where the savings account is and that's it?

I have a local bank and an online one. I link accounts online and can just transfer with app as needed between the two. If I get a check from something I can deposit by picture.


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[tyler1980]

Originally Posted by Wcdhtwn

Cool... I didn't think of that. So you write a check to yourself from your bank and just use the app of the institution where the savings account is and that's it?

or you enter your banking details (account number/routing number) and do transfers online. I have not written a check for years.

[JTL31]

Originally Posted by 77T

If you want to start now, but are concerned a better rate will come around, and want safety all the while - consider an old-fashioned solution - a CD Ladder system of investing.

https://www.bankrate.com/finance/cd/...-worth-it.aspx


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Thanks for the tip! Currently saving cash for next car in a credit union CD.

Semi-related re: banking & financial transactions:
I turn WiFi off on phone & use only cell data ~ safer route to go, even vs. locked home WiFi.

[Keadog]

I wouldn't tie up any cash for 5 years right now at anywhere near that low a rate.

[snyde]

1 year max. 6 MO CD’s are around 1.5%, so the 1% premium is not worth the extra 4.5 years.

[Wcdhtwn]

Originally Posted by tyler1980

or you enter your banking details (account number/routing number) and do transfers online. I have not written a check for years.

Is there a fee to do the online transfers? I assume so, as you're effectively wiring money from one place to another.

[tyler1980]

Originally Posted by Wcdhtwn

Is there a fee to do the online transfers? I assume so, as you're effectively wiring money from one place to another.

no

[tng11]

Better off using an online bank and maintaining your savings liquid. 2.75% locked for 5 years is peanuts in environment where rates are on the rise. I'd rather take a lower rate but maintain the liquidity.

For my USD savings I'm with Ally Bank which pays 1.45%. Connected to my main account with HSBC USA no problem.

[JTL31]

Originally Posted by Keadog

I wouldn't tie up any cash for 5 years right now at anywhere near that low a rate.

Any friendly advice to save for teenage driver? The $$ I expect to spend is already there. Should I flip over to a money market for easier access?? Have no clue exactly when a 2nd car will be needed.