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

[.brian.]

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.

Nope.

Just to reiterate what others have already said.

I have a checking account at my local bank. Direct deposit goes there. Then, I just transfer from my local bank checking account to my online savings account (Discover for me). Done and done.

Keep an eye out for promos as well if you are going to open an online savings account. Discover was just running one, if you opened your account with $15k, they would give you $150, and if you opened with $25k, they give you $200. Not a lot, but I have never heard anyone complain with a free $200.

Sorry to take the thread off-topic.

[TheVTCGuy]

I don't know much about buying CDs. I just bought a bunch of 8-tracks though.

[djhiram]

Without getting into too much detail about my employer (one of the “big banks”) I’ll give you some info that should help with your decision.

I have been a banker/account executive/branch manager for most of my banking career. Right now if you came in to my bank to open a CD we have 2 promos:

New or existing client bringing in new funds - 13 month CD at 1.60% APY. Minimum deposit 25k

Existing client with existing funds- 19 month CD at 1.60% APY.
Minimum deposit 5k

These are the best promo CDs I have seen at my employer since 2008.

Cost of living goes up roughly 3% every year. If you don’t invest in something that will get you at least that much in return annually then you are just “losing money slowly.” Should you need to close the CD before maturity, there is often a penalty involved which surpasses the amount of interest you would have earned had you not closed the CD and carried it out to full term. Chose wisely.

My personal opinion is 5 years is way too much for a CD. Better off investing in some high grade corporate bonds. Better rate of return (of course that only applies if you again carry it out to the full term.). The bonds tend to fluctuate (as any investment) but if you don’t panic and stay put, you should do much better than that CD you were looking at. You can sell the bond at any time with no penalties as opposed to the CD.

I give that same advice to all my clients. CDs are “safe” but there are better options if you truly plan on not using that money for 5 years. Just my 2 cents as a banker.

That being said there is plenty of good advice on here already. Shop around and don’t be in a hurry. And most importantly of all, make sure you fully understand the product before you jump in.

Best of luck.

[OgSnowflake]

salemfivedirect.com .... online checking/savings ...pays 1.85apy up to the first million no fees 100$ To open FDIC insured.

[Dan Pierce]

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 ?

My apologies to the OP for the shameless plug. Greedy redirect indeed, sorry.

Originally Posted by MonBK

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

Originally Posted by GradyPhilpott

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

How much for an autographed one?

Originally Posted by bdex75

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.


Sent from my iPhone using Tapatalk Pro

Originally Posted by Naples09

I see a TRF group buy in our future!

Thanks, gents!

Really proud of this recording and was thrilled to have a big hand in it's development. Hope to have it released by June, shall keep y'all posted.
dP

[Chewbacca]

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 dp!!!

Ps: nice thread jacking! Knew you could do it!

[GB-man]

Ally savings nets almost 1.5% and any other cash on the sidelines ends up spread in 3 month CDs across banks for fdic.

[Etschell]

saving is more important than getting large returns.

but what do i know i only deal with peoples financial lives daily.

[Dan Pierce]

Originally Posted by Chewbacca

Let us know when dp!!!

Ps: nice thread jacking! Knew you could do it!

Will do, CJ!

Yeah, never waste an opportunity for a shameless plug.
dP

[beshannon]

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 ?

With a 5 year time frame I would take some risk and grow my money.

If you need to protect principal then CD's might be a good choice.

[Gaijin]

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

Nice one Dan.


and I will buy your CD if you’ll ship it here?

[Gaijin]

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.


Sent from my iPhone using Tapatalk

I get 1.75 % on my first $ 25,000 and just under 1 % for anything over that. Credit union. To heck with banks.

[Gaijin]

Originally Posted by djhiram

Without getting into too much detail about my employer (one of the “big banks”) I’ll give you some info that should help with your decision.

I have been a banker/account executive/branch manager for most of my banking career. Right now if you came in to my bank to open a CD we have 2 promos:

New or existing client bringing in new funds - 13 month CD at 1.60% APY. Minimum deposit 25k

Existing client with existing funds- 19 month CD at 1.60% APY.
Minimum deposit 5k

These are the best promo CDs I have seen at my employer since 2008.

Cost of living goes up roughly 3% every year. If you don’t invest in something that will get you at least that much in return annually then you are just “losing money slowly.” Should you need to close the CD before maturity, there is often a penalty involved which surpasses the amount of interest you would have earned had you not closed the CD and carried it out to full term. Chose wisely.

My personal opinion is 5 years is way too much for a CD. Better off investing in some high grade corporate bonds. Better rate of return (of course that only applies if you again carry it out to the full term.). The bonds tend to fluctuate (as any investment) but if you don’t panic and stay put, you should do much better than that CD you were looking at. You can sell the bond at any time with no penalties as opposed to the CD.

I give that same advice to all my clients. CDs are “safe” but there are better options if you truly plan on not using that money for 5 years. Just my 2 cents as a banker.

That being said there is plenty of good advice on here already. Shop around and don’t be in a hurry. And most importantly of all, make sure you fully understand the product before you jump in.

Best of luck.

Hiram do you see savings rates going up as the Feds raise rates?

Seems like banks always raise the borrowing rates i.e. mortgage, new and used car loans , credit card interest during these Fed meeting .25 bump ups , but no benefit to savers..

[djhiram]

Originally Posted by Gaijin

Hiram do you see savings rates going up as the Feds raise rates?



Seems like banks always raise the borrowing rates i.e. mortgage, new and used car loans , credit card interest during these Fed meeting .25 bump ups , but no benefit to savers..

Sadly that’s usually the case. Best savings rate I’ve seen at our place is 1.05% APY and that rate requires a minimum 25k balance. It has gone up drastically however. 2 years ago that rate was 0.08%

[Gaijin]

Ok, well I guess that’s something.. thanks.

[Valhala]

Theres better options

[Dan Pierce]

Originally Posted by Gaijin

Nice one Dan.


and I will buy your CD if you’ll ship it here?

Thanks! I'd be happy to ship but we'll have download options as well, your preference.
dP

[JTL31]

Originally Posted by TheVTCGuy

I don't know much about buying CDs. I just bought a bunch of 8-tracks though.

I just helped my bro. drop off VHS tapes, record player & old vinyls that nnnnnnoooobody would’ve listened to. Afterwards, we went out for tacos...

[Gaijin]

Originally Posted by Dan Pierce

Thanks! I'd be happy to ship but we'll have download options as well, your preference.
dP

Aaah. Perfect. I think I can figure out how to do that.

[ckaynyc]

You could get an additional 50bps with fixed annuities.

[ckaynyc]

Originally Posted by djhiram

Without getting into too much detail about my employer (one of the “big banks”) I’ll give you some info that should help with your decision.

I have been a banker/account executive/branch manager for most of my banking career. Right now if you came in to my bank to open a CD we have 2 promos:

New or existing client bringing in new funds - 13 month CD at 1.60% APY. Minimum deposit 25k

Existing client with existing funds- 19 month CD at 1.60% APY.
Minimum deposit 5k

These are the best promo CDs I have seen at my employer since 2008.

Cost of living goes up roughly 3% every year. If you don’t invest in something that will get you at least that much in return annually then you are just “losing money slowly.” Should you need to close the CD before maturity, there is often a penalty involved which surpasses the amount of interest you would have earned had you not closed the CD and carried it out to full term. Chose wisely.

My personal opinion is 5 years is way too much for a CD. Better off investing in some high grade corporate bonds. Better rate of return (of course that only applies if you again carry it out to the full term.). The bonds tend to fluctuate (as any investment) but if you don’t panic and stay put, you should do much better than that CD you were looking at. You can sell the bond at any time with no penalties as opposed to the CD.

I give that same advice to all my clients. CDs are “safe” but there are better options if you truly plan on not using that money for 5 years. Just my 2 cents as a banker.

That being said there is plenty of good advice on here already. Shop around and don’t be in a hurry. And most importantly of all, make sure you fully understand the product before you jump in.

Best of luck.

Bonds aren’t the answer unless you ladder them and intend to hold to maturity. With the current interest rate environment you will pay a premium for the “good” bonds and even then the rising rates will bring about additional volatility.

[JYmn]

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 ?

Your realized gain (after tax) will be 2.75% x 66% = 1.82% << every year for 5 yrs fixed! Ally savings account is 1.44% x 66% = 0.95% per yr; rates are trending up this year. 1 year U.S. bond yield is 2.08% tax free!

If you're looking for almost risk-free investment, Treasury Bond it is. Fed's goal is to keep inflation at less than 2% per year. If you have $1M to invest, you will have "real" gain (0.08%, minus inflation) of $800 on year 1. Notes/bills/bonds are your best investment for "risk-free" returns. Gotta be a risk taker to make more.

[TheVTCGuy]

Originally Posted by JYmn

Your realized gain (after tax) will be 2.75% x 66% = 1.82% << every year for 5 yrs fixed! Ally savings account is 1.44% x 66% = 0.95% per yr; rates are trending up this year. 1 year U.S. bond yield is 2.08% tax free!

If you're looking for almost risk-free investment, Treasury Bond it is. Fed's goal is to keep inflation at less than 2% per year. If you have $1M to invest, you will have "real" gain (0.08%, minus inflation) of $800 on year 1. Notes/bills/bonds are your best investment for "risk-free" returns. Gotta be a risk taker to make more.

You guys are a lot smarter then I am. I read this and my head exploded

[christianj]

Thanks to this thread I'm now earning the 1.55% on an AMEX Online Savings Account! Much better than the 0.01% crappy BoA was giving me. Thanks guys!

[JParm]

2.75 seems awfully low still