Who has the highest CD rate today. USAA is now 2.70. Do you know of anybody higher? (funds, paying)

[no kudzu]

I have some money I won't need for about a year or 2. I can't keep it in my checking account getting nothing so thought I would find CD rate where can park it,. Where do you suggest. I can use USAA ( 2.70% ) or several Credit unions. Any better choices?

[sll3454]

I think most banks right now are between 1% and 1.4%. Credit unions are probably a little better. I wish I had a 2.7% option available to me.

[slackjaw]

USAA always has very good rates near the top of the market but that 2.7% seemed nuts for a two year CD, here is their CD page:

https://www.usaa.com/inet/ent_utils/...=bank_cd_rates

That 2.7% is for a seven year, not the two year term you'd be looking for. Their two year CDs are running a much more believable 1.5% to 1.8% depending on deposit amount.

[no kudzu]

yeah I realize the high rate is for 7 years but I think I can sock it away for that long with such good rates. Even if our economy improves in the next year or so I think it will be awhile before mainstreeam CD's will be going at 2.7.

Any thoughts on that?

[mathjak107]

if your locking it in for 7 years why not buy a 7 year treasury paying 2.8% and free of local taxes. seems like a no brainer.

[no kudzu]

how do I buy a treasury bond?

[mathjak107]

You can go here or a brokerage or even some banks



TreasuryDirect

[mysticaltyger]

Originally Posted by no kudzu

yeah I realize the high rate is for 7 years but I think I can sock it away for that long with such good rates. Even if our economy improves in the next year or so I think it will be awhile before mainstreeam CD's will be going at 2.7.

Any thoughts on that?

If I could sock it away for 7 years, I'd put at least some of it in a bond mutual fund of some sort. You can lose money in any given year, but losing money over a 7 year period is very unlikely. If things get that bad, we're all screwed anyway.

You might want to think about these funds below:


Harbor Bond Instl (HABDX) Fund Performance and Returns


Vanguard Short-Term Investment-Grade Ins (VFSIX) Fund Performance and Returns


This fund below has lower returns, but the interest it pays out is exempt from Federal income tax:

Vanguard Interm-Term Tx-Ex Inv (VWITX) Fund Performance and Returns

You can contact Vanguard here:

www.vanguard.com

You can contact Harbor Funds here:

http://www.harborfunds.com/

[no kudzu]

thank you very much for the list. I have some planning and plotting to do about this.