Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
I am redeeming cds as they mature and moving the cash to my VG MM fund, 5.27%. If cds start paying better than the MM, I may invest again at my cu. I only buy cds at my credit union. It has always paid a good rate. I will not shop around for a fe…
Bought an 18 month non-callable CD this week at Schwab, to replace one that matured last week. The CD pays 5% interest, and is from an A rated bank. The 18 month CD fits well into a CD ladder I have in place. As a retired person, I am very comfor…
I continue to use CDs as long as they keep paying 5% or more. Currently at Schwab, they have a significant number of non-callable CDs. For me in retirement, it is a very comfortable, no risk way, to make the 4 to 6% TR that I seek in retirement. I…
With CDs maturing, it is a bit surprising (at least to me), that CDs have started ticking back to the 5+% level for the 1 year and 18 month durations. Along with 5+% level MMs, that gives a pretty attractive and safe array of investing options, wit…
I have a financial link between my Schwab Taxable Account and my Capital One Bank Account. I will transfer money back and forth, between these two financial institutions, depending on where the best CD rates are available--very fast and simple. Fo…
With my Turbo Tax preparation of taxes, I have found if I owe too much to the IRS, I am pretty much required to send an Estimated Tax amount the following year, as IRS does not want large taxable amounts due at the end of the year. I pretty much e…
There are many varying components, regarding the CDs that fit your personal situation, whether you are talking about CDs for taxable assets vs. retirement assets, what kind of termination fee components work for you, etc. etc. I prefer Bank CDs for…
My experience over the last month is that I can find much better rates on CDs directly from Banks, than if they are offered through Brokerages. I have bought 12 month CDs from Capital One at 5.25%, but brokerage CDs through Schwab are under 5%. I…
@DT. thanks for sharing your thoughts on how youuse CD’s. I think an important point to remember is that “personal finance “ is just th at. It’s very personal and we are all on unique paths.
Absolutely--the difference between CD rates from my b…
”This thread is directed toward those who currently own CDs.”
I’ll stay out of this discussion than. Just wanted to say that it’s nice to see CDs receiving some attention on the board.
hank, thanks for being respectful of the intent of this thread.…
I have found attractive rates at my favorite on line banks but sometime soon that will be over too. My CD addiction delayed me from age related simplification of our assets but one fund solutions are looking more attractive as falling rates will be…
As a Super Senior, CDs are very important in our savings and planning.
They offer security and liquidity and beat the low savings offered at our local CU. We have about 20% in Mutual funds and that makes us over extended if one uses the 100-age rule…
Yes and no. I bought some US Treasuries this week that are maturing in 3-6 months with yields about 5.3%. I consider them comparable to CDs with certain advantages. My CD ladders will have issues maturing every 6 months or so over the next 5 years. …
As Yogi just said, "report payment delays to the FDIC. While FDIC coverage won't kick in from delated CD interest payments, but it is valid to ask if the bank involved is in any kind of trouble. Both FDIC and the Fed watch banks who top the lists of…
Crash: "Not gonna touch any of the critters mentioned here, for precisely the reasons discussed. My experience in this direction is limited to a single ADR which is underperforming. "Foreign issuer" was allegedly the reason for the delay--- not to m…
My semi annual Barclays CD interest payment showed up today. There is a process, between the Bank and the DTC, that can get short circuited occasionally, with a CD interest payments. I have had a large number of CDs,with many different banks,but …
Please see my post on the other thread by Larry B, that I just made. There was a technical process issue that occurred between Barclays and the DTC, and Schwab just discovered the issue that involved resolving a "backup documentation problem" on th…
This morning I requested my Schwab Representative research why the semi-annual interest payment from Barclays was late. My representative engaged the Fixed Income Specialist that he works with, to do the research in more detail. Just before the m…
At Schwab, you are assigned, or you choose, an official Schwab employee as your Account Representative. That Account Representative has specific Fixed Income Specialists assigned to that Account Representative. It is my understanding of the Schwa…
Thanks. What I do not see is what Fidelity does, if the bank does not comply with those requirements of a "weekly settlement". My understanding is that the DTC is a placeholder for those bank CD deposits, but is not responsible for active monitori…
I really fail to understand why Schwab, or any broker, should be held responsible for a problem from some bank. If Schwab receives Msome issue at every bank in the US?
If the bank has a problem that's the government's, perhaps FDIC's, responsibilit…
I started a related thread on this a few minutes ago, before reading this thread. I wanted more information about "DTC" workings, as periodically Schwab and the Bank disagree on who was at fault on the delay of interest rate payments. I am havin…
Yep, CD rates are lower. It was just a few weeks ago that CD rates for many time periods were 5.5%. Longer term rates over 5% are disappearing. So, it does challenge investors with maturing CDs and ample amounts of cash, to determine where they w…
Which begs the question of who do you think is selling out and depositing their funds there? Bezos? Institutions? Small investors playing the FOMO game will be left w/o a chair when/if the music stops.
Okay, I confess--its me! I have been increasin…
@stillers : "
I've netted anywhere from a % or 2 to upwards of 4%-5% extra proceeds over the years. For example, one BUY I still have the detail on shows I paid $47,739 (priced at 92.931) for a $50,000 CD for an effective Discount of 4.52%. Yeah, af…
I saw a 5.8% yield on a 10 year CD through my Fidelity brokerage account.
The bank can call the rate and I haven’t checked the penalty for early withdrawal but I imagine it would be harsh.
I assume the chances of the bank keeping the rate at 5.8 ar…
For 15+ years, we have been in a Bull Stock Market, bolstered by government stimulation and zero interest rates. That looks like an artificial set of conditions that was overdue to end. If you are holding your "breath" expecting those conditions t…
If anyone is looking for CALLABLE CD’s at Schwab they are to be found by going to TRADE, Then BONDS, and the CD’s listed above the Bond grid are generally callable.
That is enlightening! I start off with going to Products, then "Bonds, CD's,& F…
Last check at Vanguard , longer Cd's Callable. Not my cup of tea !
Not sure why Vanguard is so different than Schwab. I randomly clicked on multiple CDs in all maturity ranges, at Schwab, and they were all non-callable. These are very well known b…
Just checked CD and MM rates at Schwab. Lots of CDs in the 5.5 range, and for the first time in awhile, all CDs from 3 month to 5 years, are paying at least 5%. That seems to project a lot of confidence by banks that CD rates are going to stay hig…
At age 75, longer term rolling returns is not that meaningful to me personally. My focus has become more short term, and it appears to me, that we are transitioning away from the lengthy bull market that started in the early 2000s. Low interest r…
I own both, but attempt to have enough CDs where they are maturing throughout the year. I do own MMs for emergency liquidity needs, but do not have confidence that rates will continue rising significantly going into the future, so I prefer to lock …
I am overweight CD’s and loving it. As an older middle aged dude it’s great not to think of the next 50% correction. The only thing I worry about is when to go out longer to lock in a living, risk free return. I think that life is cool at 5.5% an…
No one can force anyone to provide any more than the minimal amount of information. If someone wants to know what I am going to invest in, I just assume they may want to know why I am choosing to invest in that way. It more completely explains my …
It frustrates me when a thread can quickly deteriorate into "silly ass" discussion. The thread topic is simply "How would you invest $100,000 now?". Just answer the question, give your reasons for that choice, and move on. The answer to the OPs q…
CDs at Schwab Brokerage are slowly seeing ongoing rate increases--some short term CDs are now at 5.6s, with most inching up above 5.4%. It is very encouraging for me personally, and anytime I get a "spare" $100k, it appears I will have some very at…
I read this thread as NOT a general question about investing, but just a very individual question, that each investor will answer for any reason they choose. I hope it does not regress into which decision is "better", or which is likely to make th…
