Talk of The Villages Florida
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Talk of The Villages Florida (https://www.talkofthevillages.com/forums/)
-   Investment Talk (https://www.talkofthevillages.com/forums/investment-talk-158/)
-   -   CD Rates (https://www.talkofthevillages.com/forums/investment-talk-158/cd-rates-336569/)

Gigi3000 01-05-2023 12:12 PM
Quote:
Originally Posted by dewilson58 (Post 2155940)
Overview of Edward Jones CDs
Edward Jones is a brokerage service. When it comes to CDs, that means Edward Jones is not creating its own CDs the way traditional banks do. Instead, it buys CDs from other banks in large volumes and then resells them to customers at competitive rates. The CDs that Edward Jones sells are known as brokered CDs.

One advantage of brokered CDs is that it’s possible to buy CDs from multiple banks through Edward Jones. The FDIC will insure your CDs up to $250,000 at every institution you bank with. So getting CDs from multiple banks (through Edward Jones) will allow you to insure potentially more than $1 million. This isn’t relevant to everyone, but it provides some more security if you are putting a lot of money into CDs.

Edward Jones has 10 CD term options available. Term lengths range from three months to 10 years. As with most brokered CDs, the interest rates are competitive. However, it’s important to note that Edward Jones does not compound your interest. You will receive interest payments based on how many days you hold a CD and the annual percentage yield (APY).

If your CD term is one year or less, you will receive an interest payment when your CD reaches maturity. If your CD term is more than one year, Edward Jones will send you an interest payment monthly, quarterly, semiannually or annually (as well as when your CD reaches full maturity). The exact schedule for your interest payments will depend on your CD. Make sure to check the schedule before you open an account.

When your CD earns interest, payments will go straight into your money market account (MMA) or another bank account that you have with Edward Jones. The interest payment will send on the same day that it is paid. Similarly, Edward Jones will transfer your principal to another account when your CD reaches maturity. This differs from traditional banks, which renew your CD for another one of the same term length after your maturity date.

There are also some potential fees you should consider. Unlike with traditional bank CDs, brokers sometimes charge a commission for buying and selling CDs. These fees often come out of your interest payments and can cut into your earnings.
Wow. Extremely helpful Mr Helpful. Ty

Gigi3000 01-08-2023 12:17 PM
Quote:
Originally Posted by Kenswing (Post 2155943)
Also make sure the cd is call protected. The last thing you want is for rates to drop and your cd called early.


Right now, interest rates are suppose to rise, last i read. Would you worry much about callable or not on a 4.70 CD? for 13 months?

Babubhat 01-08-2023 01:02 PM
Fidelity.com is Temporarily Unavailable

All you need. Ignore the error message . It works

chrissy2231 01-08-2023 05:49 PM
Quote:
Originally Posted by Paper1 (Post 2155937)
In today's Sun I see an advertisement by Edward Jones offering 12 month CD's with a rate of 4.65%. Is anyone on the forum familiar with this offering and how they can offer so much more than a bank. Thank you in advance.
use marcus best rate CD & save acct

Gigi3000 01-20-2023 07:19 PM
I found a non callable Schwab CD at Vanguard today for 13 months at 4.70% fyi

chrissy2231 01-20-2023 07:30 PM
Quote:
Originally Posted by Paper1 (Post 2155937)
In today's Sun I see an advertisement by Edward Jones offering 12 month CD's with a rate of 4.65%. Is anyone on the forum familiar with this offering and how they can offer so much more than a bank. Thank you in advance.
i have their bonds. ibond 6.86%. treasury bill 4.8%

Aces4 01-20-2023 09:36 PM
Quote:
Originally Posted by clouwho (Post 2156129)
Banks are charging EXORBITANT early withdrawal fees on CDs. 3 months up to ALL months if it is a very high interest rate

Read the fine print on everything!

Why would you withdraw early? Good planning precludes that from happening.

Aces4 01-20-2023 10:02 PM
Quote:
Originally Posted by melpetezrinski (Post 2156406)
Oh, there are so many variables that go into that decision but I will say that a majority of investors will agree with your “hardly a good investment” stance but there are many investors that are extremely conservative when they reach certain stages of life or don’t invest in the stock market. For those investors, 4% can be “a good investment” (Interest rate of change * investment portfolio exceeds inflation rate of change * expenses).
Careful planning has allowed us to ladder CDs from 4.00%-4:50%-4:75% through credit unions and banks, no fees. We have a reserve amount in a money market fund and a small balance CD at a lower rate which we will apply to this year’s RMD. With the social security increase, we are able to manage the raging, current inflation with the planned principle attrition. Everyone has different needs and requirements, as we know.

rmd2 01-20-2023 10:22 PM
If you get a brokerage account you will pay a management fee.

rmd2 01-20-2023 10:25 PM
Quote:
Originally Posted by chrissy2231 (Post 2177907)
i have their bonds. ibond 6.86%. treasury bill 4.8%
That ibond quote is good for 6 months. Then they will set another rate. It could be higher/could be lower. Every 6 months the ibond sets a new rate.

retiredguy123 01-21-2023 04:16 AM
Quote:
Originally Posted by rmd2 (Post 2177946)
If you get a brokerage account you will pay a management fee.
There is no separate management fee with Fidelity. The brokered CDs listed on their website already have any fees built into the APY. There is a percentage fee if you turn over funds for them to manage, but that is optional, and you can allow them to manage only a part of your portfolio. Typically, that would be the individual stocks in your portfolio. It wouldn't make sense to pay them to select brokered CDs.

manaboutown 01-21-2023 09:54 AM
Quote:
Originally Posted by rmd2 (Post 2177946)
If you get a brokerage account you will pay a management fee.
I currently have accounts at three separate brokerages: Ameriprise, Schwab and Vanguard. I pay no management fees as I manage my own investments and trade on-line without consulting or engaging an "advisor" in any capacity even though Ameriprise and Schwab have assigned advisors to me. I am certain the advisors are paid based on the size and number of accounts assigned to them. The brokerages of course make money on trade spreads, uninvested funds in accounts and in other ways. Ameriprise charges modest commissions but I rarely trade and have had the accounts since it was Olde Discount back in the 1970s which was bought by H & R Block after which Ameriprise bought the advisory business from H & R. Whew!

Stu from NYC 01-21-2023 12:57 PM
Quote:
Originally Posted by Aces4 (Post 2177936)
Why would you withdraw early? Good planning precludes that from happening.
Generally true but sometimes life gets in the way of planning.

Aces4 01-21-2023 12:59 PM
Quote:
Originally Posted by Stu from NYC (Post 2178183)
Generally true but sometimes life gets in the way of planning.
Believe me, I understand and thus the money market fund.

Michael G. 01-21-2023 04:36 PM
Worst thing about money market or savings accounts is the percentage can change over time.
Hopefully increase.

Stu from NYC 01-21-2023 04:38 PM
Quote:
Originally Posted by Aces4 (Post 2178184)
Believe me, I understand and thus the money market fund.
But too easy to run out of money with a long retirement. I like mutual funds with good long term track record with manager not near retirement age.

Aces4 01-21-2023 05:46 PM
Quote:
Originally Posted by Stu from NYC (Post 2178290)
But too easy to run out of money with a long retirement. I like mutual funds with good long term track record with manager not near retirement age.
CD money is not as spendable as mutual fund money? I don’t quite understand your analogy but I do know our earnings and principle are FDIC and NCUA insured. We don’t have to pay any fees for our earnings.

Boomer 02-13-2023 10:50 AM
Quote:
Originally Posted by retiredguy123 (Post 2177975)
There is no separate management fee with Fidelity. The brokered CDs listed on their website already have any fees built into the APY. There is a percentage fee if you turn over funds for them to manage, but that is optional, and you can allow them to manage only a part of your portfolio. Typically, that would be the individual stocks in your portfolio. It wouldn't make sense to pay them to select brokered CDs.

I know. I have bought some for a short and shorter term. I was getting ready to do it again, but started over-thinking how long to tie up the cash.......

Sure, a CD is a known and it's good to have some knowns. And I have been waiting forever to get some return on cash......

But I could not decide how long to tie up the next batch......

I have been fretting about this for days.......How much? How long? I already bought a 4.7 something, so there it sits, and that's OK.....but I guess the thrill is gone.......

And soooooo, instead of buying a CD this time, I just spent the money on a utility that will pay me 4-ish. (not as much as a current CD rate would) It will never take me on a rocket ride, but the check will be in the mail, and there is always hope for gain along the way, and the term to hold is strictly up to me -- months? years? forever?

Hello, my name is Boomer, and I think I am addicted to dividends. (sigh)

manaboutown 02-13-2023 11:02 AM
Since I sold a couple investment real estate properties, one in 2022 and the other last month, I have put most of the proceeds into T bills, either 3 or 6 monthers as I will need 30%ish of my LTCGs for Uncle Sam come April 18th. I have been putting a fraction of the proceeds into mostly dividend paying stocks, slowly and carefully... I really do not understand where the economy is going so I am being cautious/

Ecuadog 02-13-2023 10:50 PM
Not for nothing... I believe my Vanguard sweep acount (Vanguard Federal Money Market Fund - VMFXX) has a current yield of 4.50%.

Caymus 02-14-2023 11:48 AM
Quote:
Originally Posted by Ecuadog (Post 2187156)
Not for nothing... I believe my Vanguard sweep acount (Vanguard Federal Money Market Fund - VMFXX) has a current yield of 4.50%.
CPI was worse than expected today. You will get close to 5% soon.

kingofbeer 02-14-2023 05:33 PM
Quote:
Originally Posted by Caymus (Post 2187420)
CPI was worse than expected today. You will get close to 5% soon.
Capital One has 11 month CD at 5%

daniel200 02-14-2023 09:46 PM
GM Right Notes recently raised their rate from 4.5% to 4.75%. They have a $500 minimum. This is really like a money market fund as you can move money at your discretion at any time via electronic funds transfer from your bank account. It’s not a CD or note in that there is no minimum investment term. Interest accrues daily but is paid at the end of the month.

You can move your money back to your bank at any time with no penalty via their online tool. Mellon Bank manages the program.

The rate paid seems to float with the FED treasury target rate as they have been steadily raising the rate paid in step with the FED

I have used this extensively since rates have been rising from near zero without problem, but using it less now because of the availability of treasury bonds near 5%.

Caymus 02-15-2023 01:33 AM
Quote:
Originally Posted by kingofbeer (Post 2187523)
Capital One has 11 month CD at 5%
Different instruments. Ecuadog has a Vanguard sweep which pays interest pending reinvestments.

Kenswing 03-07-2023 11:33 AM
5.26% yield on a 1-year Treasury at Fidelity right now.

Caymus 03-07-2023 08:26 PM
Quote:
Originally Posted by Kenswing (Post 2195482)
5.26% yield on a 1-year Treasury at Fidelity right now.
Short term rates will probably reach 6% soon based on Powell's testimony today.

keithgerri 03-07-2023 11:18 PM
Synchrony bank paying 5% on 14 month cd.no fees no minimum

Babubhat 03-08-2023 06:05 AM
Fidelity.com is Temporarily Unavailable



Top rates chart. Ignore the unavailable message

Mlundberg 03-08-2023 06:58 AM
I use Vanguard for brokered CD,s. It's simple with the click of a mouse. Rates are competitive and no fees. I would never buy a bank CD again.

Plinker 03-08-2023 07:46 AM
Quote:
Originally Posted by Mlundberg (Post 2195686)
I use Vanguard for brokered CD,s. It's simple with the click of a mouse. Rates are competitive and no fees. I would never buy a bank CD again.
Agree with Vanguard choice. Callable, 12-18 months at 5.35%. I am not concerned with callable CD’s with short-terms. Longer terms, yes.
A big advantage with Vanguard, etc is you won’t be subjected to an Edward Jones sales pitch for other more lucrative, commission-based services.

retiredguy123 03-08-2023 11:05 AM
Quote:
Originally Posted by Mlundberg (Post 2195686)
I use Vanguard for brokered CD,s. It's simple with the click of a mouse. Rates are competitive and no fees. I would never buy a bank CD again.
I agree. I only use banks for checking accounts and credit cards. They cannot compete with investment companies like Vanguard and Fidelity for earning interest.

Aces4 03-08-2023 12:34 PM
Quote:
Originally Posted by retiredguy123 (Post 2195804)
I agree. I only use banks for checking accounts and credit cards. They cannot compete with investment companies like Vanguard and Fidelity for earning interest.
I didn’t realize those two companies are FDIC insured. Peace of mind…. Priceless.

dewilson58 03-08-2023 12:41 PM
Quote:
Originally Posted by Aces4 (Post 2195834)
I didn’t realize those two companies are FDIC insured. Peace of mind…. Priceless.
Not 100% true.

Aces4 03-08-2023 12:43 PM
Quote:
Originally Posted by dewilson58 (Post 2195838)
Not 100% true.
They are FDIC insured and no fees anywhere?

dewilson58 03-08-2023 12:48 PM
Quote:
Originally Posted by Aces4 (Post 2195839)
They are FDIC insured and no fees anywhere?
Nope.

Example from Van's website: Vanguard Municipal Money Market Fund: The Fund is only available to retail investors (natural persons). You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Another: Vanguard Cash Reserves Federal Money Market Fund and Vanguard Federal Money Market Fund: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Aces4 03-08-2023 12:52 PM
Quote:
Originally Posted by dewilson58 (Post 2195842)
Nope.

Example from Van's website: Vanguard Municipal Money Market Fund: The Fund is only available to retail investors (natural persons). You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon the sale of your shares or may temporarily suspend your ability to sell shares if the Fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Another: Vanguard Cash Reserves Federal Money Market Fund and Vanguard Federal Money Market Fund: You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.
As I thought. So you think peace of mind isn’t important.:icon_wink:

retiredguy123 03-08-2023 12:59 PM
Quote:
Originally Posted by Aces4 (Post 2195839)
They are FDIC insured and no fees anywhere?
Not sure I understand your post. You can buy brokered CDs from Vanguard and Fidelity that are FDIC insured, and they will sell you U.S. Treasury products that are backed by the Government. They also sell non-insured products.

The Vanguard and Fidelity companies are not personally FDIC insured, but they don't fund the products that they sell. They are brokers who buy and sell products for you, and hold them in an account for you in your name. So, if you buy a brokered CD that is FDIC insured, you are protected the same way the original purchaser is protected.

retiredguy123 03-08-2023 01:17 PM
Quote:
Originally Posted by Aces4 (Post 2195846)
As I thought. So you think peace of mind isn’t important.:icon_wink:
Note that all products sold by banks are not FDIC insured. FDIC deposit insurance only covers certain deposit products, such as checking and savings accounts, money market deposit accounts (MMDAs), and certificates of deposit (CDs). Other products like mutual funds and annuities are not FDIC insured, even if you buy them from an FDIC bank. So, a municipal money market fund similar to the Vanguard fund, referred to in Post No. 75, but sold by a bank, would not be FDIC insured.

Aces4 03-08-2023 01:17 PM
Quote:
Originally Posted by retiredguy123 (Post 2195848)
Not sure I understand your post. You can buy brokered CDs from Vanguard and Fidelity that are FDIC insured, and they will sell you U.S. Treasury products that are backed by the Government. They also sell non-insured products.

The Vanguard and Fidelity companies are not personally FDIC insured, but they don't fund the products that they sell. They are brokers who buy and sell products for you, and hold them in an account for you in your name. So, if you buy a brokered CD that is FDIC insured, you are protected the same way the original purchaser is protected.
No fees or other accounts necessary for brokered CDs? If a cd is brokered, there is either money taken off the top or at the end of the cd. One had better be sure their investment is FDIC insured and not something else.

Caymus 03-08-2023 01:24 PM
Quote:
Originally Posted by Aces4 (Post 2195834)
I didn’t realize those two companies are FDIC insured. Peace of mind…. Priceless.

All the "brokered" CDs I ever bought through Schwab and TD Ameritrade were FDIC insured.


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