[keepsake]

Do you include federal credit unions in your comfort zone ?

[retiredguy123]

Originally Posted by keepsake

Do you include federal credit unions in your comfort zone ?

I think credit unions are just as safe as banks if they have NCUA insurance. But, I would still use one with a local brick and mortar building, if possible. I could be wrong, but I don't know of any Federal credit unions that are online only, and don't have brick and mortar buildings somewhere.

[Two Bills]

In UK our local bank does not have facility to handle cash anymore.
Everything is automated. Paying in, and taking out.
No cashiers, just a couple of machine sorter outers for when you **** up!
Online/cell banking is as safe as any online business, as long as you have all safeguards in place to start off with.
Believe me, if I can do it, anyone can!

[daniel200]

Originally Posted by retiredguy123

If you buy a 12 month treasury at 2.18 percent and hold it for 12 months, technically you will not lose money. But, if the interest rate doubles 3 months after you buy it, you are losing the opportunity to replace the bond at a higher rate. It's semantics. I prefer to invest in bonds with mutual funds rather than buying individual bonds. I like the liquidity.

I am a big fan of bond funds in a falling rate environment. But we are now (I believe) in a rising rate environment. An investment in Vanguard’s short term fund has lost 3% in value in the last 3 months. Longer term bond funds have lost much more. I am no longer in bond funds … because I believe the Fed is on a path to consistently raise rates the next 12 months. So I am now nibling at bonds as rates rise.

I hold my cash in GM Rightnotes. Current rate is 1.25% compounded daily. Redeemable at any time upon request. Essentially it is like a money market account that pays 1.25%. Toyota and Daimler offer similar accounts. Certainly, the 1.25% is much less than inflation …. But it is better than 0.01% paid by most money market accounts … and you will never lose principle as rates rise (like bond funds).

I know there are many places to put your cash (preferred shares, trust shares, Reits etc) that offer 4 to 10% dividends or returns. I own many of these … but am at my personal risk “limit” of these. I see treasury bonds as ultrasafe for my cash … I am not rushing in to buy bonds but rather stepping in a few bonds at a time with maturities of 12 to 24 months. I plan to buy every 2 or 3 months and slowly build a ladder. I dont need the liquidity. If rates continue to rise I am happy! If rates fall, I am happy to have a few bonds at a higher rate.

I think the first choice with anyone with some cash that they do not need for 1 year is US treasury I-bonds. Current rate is 9.8%. But you are limited to $10,000 per year (+ $5,000 more if funded by a tax refund). They are easy purchase via the US treasury website

[Michael G.]

Originally Posted by keepsake

Do you include federal credit unions in your comfort zone ?

I do belong to a credit union in Ocala and thinking about joining the Camps USA.
Their building a new building along the service road just west of Stonecrest.

If you check on CD's at most Credit Unions, their rates are close to on-line banks.

[retiredguy123]

Originally Posted by Michael G.

I do belong to a credit union in Ocala and thinking about joining the Camps USA.
Their building a new building along the service road just west of Stonecrest.

If you check on CD's at most Credit Unions, their rates are close to on-line banks.

The best CD rates are usually from the large Federal credit unions like Penfed and Navy Federal. I think Penfed currently has a 5 year CD for 2.5 percent. Anyone can join these credit unions. Personally, I would not buy a long term CD at this time because I think interest rates are going to increase.

[Nucky]

We have used Chase Bank for almost as long as they have had Online Banking. Never a blip. Chase does their updates during the early morning hours and warns you that they will be doing so. Chase has many departments, but not all
We did use Citizens First when we first moved here but several times they did updates during business hours and had no one on duty to help on weekends and after hours. We were accustomed to the service provided by Chase. I would highly recommend Chase for Online Banking. Good Luck.

Just so you know, Citizens is a fine bank in many other ways.

[New Englander]

I have been using this online bank for many years. (Online Savings Account ⋆ SFGI Direct, a division of Summit Community Bank) It is FDIC insured. Very fast transfers to your local bank. It is currently paying 0.71% and that is much more than many bank. I have nothing but positive feelings about this bank.

[coralway]

been using Citi, Fidelity and TD for decades. As well as NFCU, and PEN FED.

Never had any problem at all with any of them.