Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Absolutely not. There's no reason to tie up your money for 5 years at 3% in a rising interest rate economy. If you want a CD, you can get a 1yr CD with a slightly higher interest rate (3.1%) through an online bank
<snip>
Where the heck are you finding these CD's?
Please reply by DM if you don't want to post this.
Please reply by DM if you don't want to post this.
When I pull up fixed income on Schwab.
The CDs are there as well as Treasury Notes & Bills with similar or higher interest rates that one would purchase on the secondary market. In fact, I bought a T Note a couple of weeks ago like that. It is set to mature next August and had a coupon (interest) rate of only 0.125% when originally issued, but I bought it at 96.78% of face value, giving me a YTM (interest) rate of 3.002%. I'll probably buy another 3, 6, 9, or 12-month T Note after the Fed raises its rate by the expected 75 basis points next Thursday afternoon. (Not that I expect T Bills to go up an equivalent amount; a lot of that expected increase is already baked in to current rates on the secondary market.) I have a lot of "free" money to invest right now because I just sold my house and while the majority is or will be going into equities, I am also buying fixed income to keep my overall portfolio balanced. But in a rising interest rate environment, I don't want to just dump a large lump sum into fixed income at one time, even by laddering maturity dates. So I'm investing a portion at a time, just as I am doing with the equities side.
Please reply by DM if you don't want to post this.
CFG bank money market account is now 2.03%,wait till Tuesday when Fed raises rate by 75 basis point,rate could easily reach 3% and you can withdraw anytime
Some of us remember when CDs were paying 18% in the Carter years, and I think we’re headed there again. So no, I wouldn’t take out a 3 year CD right now.
We are kind of facing the same dilemma soon. We’re expecting a windfall, and are reluctant to throw it in the pile with the stock and bond funds right now. At least if it’s sitting in the bank, it’s not losing, except to inflation.
Some of us remember when CDs were paying 18% in the Carter years, and I think we’re headed there again. So no, I wouldn’t take out a 3 year CD right now.
We are kind of facing the same dilemma soon. We’re expecting a windfall, and are reluctant to throw it in the pile with the stock and bond funds right now. At least if it’s sitting in the bank, it’s not losing, except to inflation.
If you have access to the NYT, or any free articles left to read before the paywall kicks in, the link below is to an excellent article written by Ben Bernanke last month that explains why it is almost a certainty that that will not happen. He also explains why exactly "The Great Inflation" (1965-1981) took place and the errors that occurred both politically and with the actions (or inaction) of the Federal Reserve Board.
I think we might be opening a Schwab account for the 1yr. cd soon! Thank you all for the information in this post.
Just to be clear, you don't need to open a Schwab account necessarily to see these rates or to get access to these CDs. I'm sure you can do so through most any brokerage account. Just as you could also purchase a T Bill or Note on the secondary market.
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,073 posts, read 7,515,583 times
Reputation: 9798
OP,
Not unless you get a toaster, hair dryer, and socks
We keep the cash as cash, for trading stocks and missed trips. Retired.
YCMV
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
