[Michael G.]

Originally Posted by Paper1

I am now armed with a number of good questions to ask.

Yeah, like telling them to take their "Potential Fees" and stick where the sun don't shine.

[FastAndCurious]

You might consider looking into US treasury bills which can easily be bought through your online account. They may have some advantages.
They can be bought for shorter terms, like 3 months and 6 months.
I just checked Fidelity and 3 month was paying 4.34%
6 month is paying 4.52% and 1 year is at 4.76%
These are backed by the US government.
Staggering the terms allows you to "ladder" the investments so you have money becoming available every few months if needed.
In most cases they are also exempt from state taxes on the earnings.
You still have to pay federal income tax on earnings of course.
There are a lot of videos on youtube that will help educate anyone.
I am NOT a broker or an expert! Good luck.

[Babubhat]

Fidelity money market paying 3.06 on cash balances.

All current CD and Treasury rates at this link

Rates

https://home.treasury.gov/system/fil...n-Schedule.pdf

[tfulgieri]

Well written except for one thing. The quoted rates are net of all commissions, so if the add says 4%, you get 4%. The broker does get paid but as I used to say to clients "if Jones kept the CD they, would earn slightly more than the 4% you are getting".

[MandoMan]

Originally Posted by Paper1

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.

Doesn’t that mean that with the current inflation, you will lose 4% in a year? Hardly a good investment.

[rustyp]

Originally Posted by MandoMan

Doesn’t that mean that with the current inflation, you will lose 4% in a year? Hardly a good investment.

OK I'll bite. Where can I get a guaranteed investment which yields inflation plus normal 4% (approx 12% +) that is FDIC insured ?

[main12use]

If you want your money liquid - VIO Bank online Cornerstone money market is now 3.52. No fees or penalties. Minimum to open $100.

[Iowagirl2]

Thank you I’ve always wondered why bank CDs and brokered CDs are different.

[clouwho]

Originally Posted by Aces4

You were Mr. Helpful, great analogy.

I am getting great rates on FDIC insured brokered CD within my vanguard account. NO FEES or commissions.

Also, there are 4.3-5.3% rate short term (3-5 years) fixed term annuities available at pretty much every bank, investment house etc.

And t bills and notes are AWESOME right now.

LOTS of decent returns in the Uber low risk category for a change.

Of course, not enough reward to offset this ridiculous amount of inflation, but great options for short term safe money.

[clouwho]

Originally Posted by Kenswing

Also make sure the cd is call protected. The last thing you want is for rates to drop and your cd called early.

YES, critically important part of due diligence.

On vanguard you can sort for non-callable, term, FDIC insured on both primary and secondary market CDs

[clouwho]

Originally Posted by dewilson58

Also, must you investigate if you move forward............................At some brokers, if you buy a CD thru them and you need your cash early, they sell your CD on the market, with fees and with market pricing......which may not be good. Unlike buying from a "bank", you lose some interest for early withdrawal.

Could be a good opportunity,,,,,,,,,,,,,,,,,,,,,,,,,jus go in with eyes wide open and ask questions.

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!

[clouwho]

Depositaccounts.com tends to have even more offerings than bank rate.com
Credit unions tend to have higher rates than banks.
Internet banks almost always beat brick and mortar CD rates (unless buying a brokered CD via your investment house)

Do your due diligence and make sure your financial institutions are in good shape. Bauer Financial is a good site to check on the fiscal health of the institutions holding your money.

Star Ratings | BauerFinancial


https://www.depositaccounts.com/

[daniel200]

As others have noted, in the current environment US treasuries are a solid and safe choice. Attached is a fidelity screenshot of todays yields on various CD’s, bonds and US Treasuries. Currently you can get 4.75% on a one year US treasury.

You can purchase any of these on the fidelity website in a few mouse clicks if you have an account set up.

The Fidelity money market fund FZDXX currently is paying 3.59%

[Carol Fiore]

Originally Posted by Paper1

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 buy my CD online with Fidelity. I can get 4.75 for a year. It easy to open an account. They have an office in Sumter. Then I buy the CD myself. Just $1000 MIN.

[rsmurano]

You can get a 2 year treasury note that you I’ll give you 4.7% if you want to lock up your money. I want to get back in the market when things get back to normal so I don’t want to have my money locked up where I can’t get to it when I want