10-Year CDs @ 4% On the Schwab CD quote page, under New Issues, they organize the CDs by term (1 month, 3 month, 6 month, 9 month, 1 year, 18 months, 2 years........), and the listings are only for FDIC insured banks. For each Bank listed, they then give a clear statement of the coupon interest rate it is paying, the frequency of interest rate payments, and what the Maturity date is for the CD. Again, I discussed all of these details in conference calls with Schwab representatives, and the subject of my call was to ensure there is no difference between CDs you buy directly from a bank, compared to CDs you buy from the banks through the brokerage. I am confident that that information is correct. However, I did not do additional extensive research on each bank to determine if they are "financially shaky banks", to use your terminology. I will say that your statement above, about Brokered CDs fluctuating in value according to bid/ask is accurate, and in my conference calls with Schwab, they did not acknowledge that difference from CDs offered directly from banks. When I monitored my CDs in my account, I did see those daily values changing very frequently, and that was a surprise to me. I called my regional Schwab representative back, she acknowledged that "they could have done a better job with that aspect of the description brokerage CDs", but she then connected me with the CD office at Schwab, who assured me that those fluctuating daily values are "just paper values", and if I held those CDs to maturity, I would get all the coupon interest accurately quoted on their CD brokerage page, and on the maturity date I would have CD amount distributed back into my account cash account. I do believe that there are some differences in the penalties, for early selling of the CDs, between brokerage bought CDs and Banks, so you need to be fully aware of those penalty differences if you have any plans on doing that.
NY Fed Sees 80% Probability of Hard Landing From Today’s WSJ:
The U.S. economy is very likely on a path to shrink this year and next, a Federal Reserve Bank of New York report said on Friday. According to how the New York Fed models the economy’s path, the report said that “the chances of a hard landing…as occurred during the 1990 recession are about 80%,” while the probability of a “soft landing,” in which gross domestic product essentially remains positive over the next 10 quarters, is 10%.
* The ellipsis marks reflect editing by the WSJ and not by me.
10-Year CDs @ 4% ADVANCE to the
12:00 minute mark for a brief lesson on how “rainy day” time deposit withdrawals work.
10-Year CDs @ 4% @yogibearbull : The CD I bought at Schwab starts on 6/22 - ends7/22. I take it Chuck is using the money as "float". Could this be instead of the bank paying a fee ? CD was purchased about
10 days ago.
Thanks YBB, Derf
10-Year CDs @ 4% Fido is showing their current CD ladders as follows:
1 yr = 2.14%
2 yr = 2.75%
5 yr = 3.14%
When you click on these "CD ladders" at Fido, you may end up with some questionable CD issuers.
Their FZDXX money market fund is giving .86% (7 day yield).
10-Year CDs @ 4% Yup, Bought 1 month CD @ 1% at Chuck's place. I'll wait for the next rate increase to see if I will buy another month or go longer.
Differ strokes for differ folks, Derf
10-Year CDs @ 4% Schwab is offering a 2 year CD at 3.10%, a 18 month CD at 2.7%, 12 month at 2.65%, 9 monrh at 2.1%, and 3 month at 1.8%. It takes a minimum of $10,000 for a CD. I am expecting these rates to increase substantially during the last half of 2022. Longer term CDs do not interest me.
