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My TD Ameritrade account was converted to a Schwab account over the Labor Day Weekend. When I logged in the first time I went to check their selection of brokered CDs. They only had 2 CDs available with maturities three months and under - a 1 month CD and a 3 month CD paying 4.99%, not that great. For comparison, Fidelity at the same time had 17 CDs available from 1-3 months. If anyone here uses Schwab for brokered CDs is that limited selection normal or do they usually have more available? If it is normal for them then I’m going to transfer my Schwab account to Fidelity as I mainly buy CDs.
Wow! I thought that all happened last year.
Not surprising really.
Still, not all that many (short term) choices
Okay. But whether at Schwab or Fidelity ... the Q about short maturity term remains.
When will you start to extend them? 1yr 2yr 3yr etc?
I don’t really need many choices as my main criteria in choosing a CD is the earliest settlement date and secondarily the yield. My cash at TDA earned only .4% and I think Schwab is maybe a little more but not much. If there is only one CD available and it settles in 10 days, that’s 10 days I’m only earning .40% instead of 5% or more. Fidelity puts my cash in a government money market fund now earning about 5%. In that regard Fidelity is much better than TDA and Schwab.
I don’t plan on going for long maturities anytime soon because I don’t like to tie my money up for a year or more. I might go for CDs longer than three months if the Fed signals they will be making a series of interest cuts but I don’t see a reduction in inflation when I shop.
I just logged into my Schwab account, and looked at the short term brokered CD list. Today I see two offered for one month CDs and three offered for three month CDs. All of the CDs I have purchased through Schwab settled within a couple of days.
Lately, as my CDs mature, I've been buying 3 month T-bills (new issue at auction) through my Schwab account. The interest rates are a bit better than CDs, and if you live in a state with income taxes, they are state income tax free.
My TD Ameritrade account was converted to a Schwab account over the Labor Day Weekend. When I logged in the first time I went to check their selection of brokered CDs. They only had 2 CDs available with maturities three months and under - a 1 month CD and a 3 month CD paying 4.99%, not that great. For comparison, Fidelity at the same time had 17 CDs available from 1-3 months. If anyone here uses Schwab for brokered CDs is that limited selection normal or do they usually have more available? If it is normal for them then I’m going to transfer my Schwab account to Fidelity as I mainly buy CDs.
I just did a search for 3-month CDs and I get a whole page of them, probably at least 50. Here are the first few...
I just did a search for 3-month CDs and I get a whole page of them, probably at least 50. Here are the first few...
Those don't look like "new issue" CDs for the full term. Those are previously issued, where you buy at the going market rate for the remainder of their term.
i agree with the previous comment, that the Schwab money market fund is paying 5.2 percent or better, which is not a bad deal for short term funds. Nice thing with a money market fund is you can move cash in or out within a day. I use the Schwab money market for my emergency cash fund, which is about 12 months of expenses.
My TD Ameritrade account was converted to a Schwab account over the Labor Day Weekend. When I logged in the first time I went to check their selection of brokered CDs. They only had 2 CDs available with maturities three months and under - a 1 month CD and a 3 month CD paying 4.99%, not that great. For comparison, Fidelity at the same time had 17 CDs available from 1-3 months. If anyone here uses Schwab for brokered CDs is that limited selection normal or do they usually have more available? If it is normal for them then I’m going to transfer my Schwab account to Fidelity as I mainly buy CDs.
I haven't checked at Schwab lately, but the CD offerings at Fidelity change daily. I've looked on days when only 2-3 3-month CDs were available and days when 30-40 were offered.
Those don't look like "new issue" CDs for the full term. Those are previously issued, where you buy at the going market rate for the remainder of their term.
i agree with the previous comment, that the Schwab money market fund is paying 5.2 percent or better, which is not a bad deal for short term funds. Nice thing with a money market fund is you can move cash in or out within a day. I use the Schwab money market for my emergency cash fund, which is about 12 months of expenses.
Wow! I thought that all happened last year. (snip)
My TDA accounts STILL haven't been transferred. They give you a 3 month window, with email notice beforehand, which I haven't rec'd yet.
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