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Old 06-21-2022, 05:53 AM
 
610 posts, read 531,369 times
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Quote:
Originally Posted by tickyul View Post
Some banks a jacked to the gills with deposits, they have no need to pay for more.

Well Fargo is still under a Fedgov-ordered asset-cap, so I assume that has something to do with it.
This is what I’ve heard also. I have a friend who is a retired president of a fairly large bank and in his words banks are currently “flush with cash”. So there’s no reason to raise rates in order to attract more cash. If that changes then you’ll see them raise their rates.
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Old 06-21-2022, 03:08 PM
 
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Banks aren't raising rates, because most banks are flush with cash. Most of the time, when a bank pays a much higher than average savings rate, it's to build the banks core cash (have it on the balance sheet >12 months) in order to fund loans. Funding loans hasn't been an issue in a number of years, as borrowing money is very cheap, and those borrowers have parked their money in banks.
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Old 06-21-2022, 03:16 PM
 
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Quote:
Originally Posted by thrillobyte View Post
I think he's right. Larger banks are the ones that will get bailed in a crash, not the smaller ones and most smart people know this. That's why the Big 10 will keep their interest rates at 0.01%--because they know depositors will keep their money in a large bank out of fear of losing it all in a Depression. In these uncertain times no one should keep large amounts of money in tiny banks.
I'm not anticipating many banks succumbing to a run on them. Growth will just slow, but it won't halt like it did in 2008 and 2009. Have to remember, borrowers just like banks, are also flush with cash.
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Old 06-21-2022, 03:25 PM
 
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1. They don't have to.

1.1. I'd be a little concerned about any bank or similar offering over-market rates.

1.2. It's too in the weeds for much discussion but many smaller banks have grown so much over the last couple of years that more deposit growth isn't appealing.

1.3. CDs are subject to absurdly high compliance costs. Thanks to Dodd-Frank mostly.

2. Many retail customers specifically motivated by CD rates are net loser customers for banks. The larger the bank the more likely true that statement.
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Old 06-22-2022, 11:56 AM
 
30,904 posts, read 36,995,531 times
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Quote:
Originally Posted by thrillobyte View Post
Wells Fargo CD: 0.01%


Chase CD: 0.02%
A: Because they don't have to. People will keep banking with them despite their horrible rates. I've been saying since long before the 2008 financial crisis that people should stop doing business with the big banks, to no avail.
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Old 06-24-2022, 10:32 AM
 
Location: North Idaho
32,668 posts, read 48,129,403 times
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i just checked and my money market account is paying 0.1% and some of the savings accounts are paying, literally, zero interest. Mortgages are all around the 5% level; some a hair less, some a hair more, but all close to 5%.


It would be nice to see some interest rate increase because the official government rate is that my money is losing 8% of its value every year and that official rate is artificially low and self-serving. My money is losing its spending power at a fast clip.


At least the interest on the money market has doubled. It was .05% when I opened the account.
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Old 06-24-2022, 10:54 AM
 
Location: 5,400 feet
4,873 posts, read 4,816,295 times
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I have previously purchased CDs through Fidelity directly from the issuer. There are no fees. Some banks are not familiar, but everyone I have looked into is FDIC insured.

Current top rates for 3-month are 1.9-2.0%, 6 month 2.15-2.25%, 9 month 2.5-2.6%, 12 month 2.6-2.8% (only 4 issues offered for 12 mo).
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Old 06-26-2022, 02:41 AM
 
Location: Silicon Valley
7,652 posts, read 4,616,279 times
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Understanding This Table 3mo 6mo 9mo 1yr 2yr 3yr 5yr 10yr 20yr 30yr+
CDs (New Issues) 2.05% 2.25% 2.60% 2.95% 3.35% 3.45% 3.75% 4.00%

Rates on Fidelity.

Go into News and Research. Select Fixed Income Bonds and CDs. THen just click on the timeframe you are interested in buying for bonds or CDs.
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Old 06-27-2022, 01:47 AM
 
3,351 posts, read 1,241,645 times
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Quote:
Originally Posted by JohnMuirTrailNirvana View Post
My local credit union is advertising 5 year CD's with a 3.01% rate. I am tempted to park the $500 minimum in one and see if rates go further up this summer.
Nothing like a sweet $1.50 a month profit
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Old 07-01-2022, 08:02 PM
 
Location: Chapel Hill, NC, formerly NoVA and Phila
9,781 posts, read 15,804,357 times
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Pentagon Federal has a July 4th special (can buy until 7/7):

2.75% for 2 years
3.5% for 5 years

We are planning to buy a second home in about 3 years, and I just want to park some money, so bought some 2 year ones. Better than the .45% I was getting in the money market. Funny thing is that we only have an account there because years ago they had higher CD rates than our regular credit union (Navy Federal).

Navy Federal isn't as good, but they just raised rates:

2.25% for 3 years
2.8% for 5 years
3.1% for 7 years
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