[bionictony]

can someone please post a link? or is it a Las Vegas local thing?

[ft_chief]

Originally Posted by bionictony

can someone please post a link? or is it a Las Vegas local thing?

https://www.navyfederal.org/

Look for the Member-ific Specials banner.

[logline]

10-year treasuries are currently at 2.5%. This CD sounds like a deal, but I have to ask WHY it's a deal. Is this a bad sign of things to come? Is the credit union hurting for deposits that bad? If so, why and what will happen if it goes under? Or is it a bad omen for the rest of the economy to offer rates that high after so many years of ultra-low interest rates? Hmmm.... looks suspicious.

[ft_chief]

Originally Posted by logline

10-year treasuries are currently at 2.5%. This CD sounds like a deal, but I have to ask WHY it's a deal. Is this a bad sign of things to come? Is the credit union hurting for deposits that bad? If so, why and what will happen if it goes under? Or is it a bad omen for the rest of the economy to offer rates that high after so many years of ultra-low interest rates? Hmmm.... looks suspicious.

Navy Federal Credit Union is the largest credit union in the world with over 5 million members. They are a rock solid conservative financial institution. They make money hand over fist. Their primary customers are AD military members and retirees. They are generous giving back to their members in reduced fees, credit card rates, and loan rates.They are one of the few banks that never engaged in sub-prime mortgage lending. This 5% APY for a 1 year CD has a maximum deposit of $5k. It is not an unlimited amount.

[clutchcargo777]

Originally Posted by ft_chief

Navy Federal Credit Union is the largest credit union in the world with over 5 million members. They are a rock solid conservative financial institution. They make money hand over fist. Their primary customers are AD military members and retirees. They are generous giving back to their members in reduced fees, credit card rates, and loan rates.They are one of the few banks that never engaged in sub-prime mortgage lending. This 5% APY for a 1 year CD has a maximum deposit of $5k. It is not an unlimited amount.

Correct, and they have done this same promo every other year as a "member appreciation" give back since I've been a member.

NFCU is a top notch CU. Just don't try to slide in under sketchy credentials. They WILL ferret you out and close your account.

Only current or retired military or DoD, retired meaning you are collecting a pension. There are a few other ways in listed here https://www.navyfederal.org/how-to-b...e-a-member.php

I am none of the above, but I lucked out when a CU I was a member of crashed and burned and went under receivership of Navy. Really a stroke of luck. The only weird way in that I know of that's legitimate.

[ddrhazy]

Originally Posted by ScoopLV

Try to take your money out early and then tell me how it's "no-hassle." I've had money in both CDs and Index Funds. The level of hassle is similar.

The only difference is the amount of taxes that the investor is going to pay on the dividends -- not the percentage, the amount -- because Index funds PAY considerably more than CDs.

Seriously, please read this. And then read the associated links. Especially anything that has the name "John Boegel" on it. This is not get-rich-quick. But it IS get-rich-slow. CDs are NOT "get-rich-fast-or-slow-or-ever." I keep hoping we create a society where everyone does well.

Index Funds | Index Mutual Funds | Investing in Index Funds

An index fund has risk. A CD has none. I'm not sure what hassle you have had in the past taking money out of a CD before it has matured, but there should only be a partial penalty against the interest you were first promised.

[ScoopLV]

Originally Posted by ddrhazy

An index fund has risk. A CD has none. I'm not sure what hassle you have had in the past taking money out of a CD before it has matured, but there should only be a partial penalty against the interest you were first promised.

You really think a CD has NO risk? What if the NCUSIF crashes and burns? I thought I was quite clear that if an index fund tied to three thousand companies loses 100% of it's value, the economy has tanked to such a degree that a CD is probably worthless as well.

Furthermore there is risk in not accepting at least a little risk -- the risk of not having the funds necessary to accomplish financial goals. (A house, a business, tuition, etc.) That's the risk that I keep laser-like focus on. The rest is just hand-wringing.

[ddrhazy]

If you don't wish to trust FDIC then I guess it has risk but that seems silly to do. If I had the option of investing in a CD at a 5% return vs. investing in real estate with 7% return, I'd invest in the CD. Obviously that's not doable as there is a 5k limit on the amount to deposit here, but doesn't negate the fact that the return is good.

[ScoopLV]

Originally Posted by ddrhazy

If you don't wish to trust FDIC then I guess it has risk but that seems silly to do. If I had the option of investing in a CD at a 5% return vs. investing in real estate with 7% return, I'd invest in the CD. Obviously that's not doable as there is a 5k limit on the amount to deposit here, but doesn't negate the fact that the return is good.

And I don't think 5% is good. I don't even think 5% is worth the effort. Nobody is going to get rich on 5%. That isn't even "comfortable."

The index fund I have paid 9% in it's worst year ever. I put a chunk of change on par with ft_chief's $5K into it every year. And then I plow all the dividends back into the fund. It has more than doubled what I have put into it over the course of 10 years. Way more than doubled is more accurate. It is getting into "Wow! This is really cool!" numbers.

Look at the 10-year returns and then get back to me about how good CDs are. And keep in mind, this all still worked during the crash.

https://investor.vanguard.com/mutual...AnnualMonthEnd

[ddrhazy]

It is a risk based investment. Not a guaranteed return like a CD. You cannot guarantee that the mutual fund doesn't tank.