Being retired at age of 77, I have enjoyed the last few years of finding CDs which pay at least 4% interest. I looked at Schwab this week, and it is almost impossible to find a noncallable CD paying 4% interest. I have been getting over 4% from Schwab Money Market accounts, but I would like to have some CDs to replace those maturing, and retain some FDIC protections. In my Taxable Schwab account, I have chosen to increase my investments in private banks and credit unitions. I just bought a 100k CD at Capital One for 4.2%, and have started looking at other banks for some of my Schwab holdings.
Comments
Unfortunately, the 14 months No-Penalty Sally Mae Bank CD is down to 3.95% APY.
However, there are still some appealing options:
1. On raisin.com one can get $1000 on a $100K+ investment though September 30, 2025. This is an extra 4% annualized @ $100K investment on top whatever CD or other bank product one may get from them over 3 months. One can also get smaller bonuses for smaller investments.
This is the offer I would have taken advantage of if I did not have the funds locked up elsewhere on a somewhat better deal, alas, no longer available. (Note: I have never invested with Raisin before but have heard good things about the platform.) Current Raisin offerings include:
OptimumBank 5 months No-Penalty CD @ 4.20% APY (30-day hold)
Western Alliance Bank 5-months CD @ 4.36% APY (90-day simple interest penalty)
ADDED: Blue Federal Credit Union 9 month No-Penalty Certificate @ 4.15% APY (30-day hold, NCUA-insured)
[while offering the same rate as and shorter term than Marcus' offer (below) this product can be combined with Raisin's $1000 promo on larger deposits for a significantly higher yield]
2. Outside of Raisin, there are still a number of smaller FDIC-insured banks offering conventional longer-term CDs at > 4.30% APY. Here is one example:
FinWise Bank 12 months CD @ 4.40% APY (90-day simple interest penalty)
3. Also, Marcus' original longer-duration No Penalty offer is still available (as first highlighted by @msf):
Marcus 13 month No-Penalty CD @ 4.15% APY (7-day hold)
4. ADDING for cataloguing purposes:
(as pointed out by @msf below) Sallie Mae Bank has a range of conventional CDs > 4.00% APY. The highest-yielding one:
Sally Mae Bank 15 months CD @ 4.40% APY (180-day simple interest penalty)
[Note, when bought directly from Sallie Mae Bank, these are assessed:
90-days simple interest penalty if CD has a maturity of 12 months or less, and
180-days simple interest penalty if CD has a maturity greater than 12 months.]
(as pointed out by @larryB below) Marcus has a range of conventional CDs > 4.00% APY up to 6 years out. The highest-yielding ones:
Marcus 6/9/12/18 months CD @ 4.40%/4.30%/4.20%/4.00% APY (90/90/90/180-day simple interest penalty)
[Note, when bought directly from Marcus, these are assessed:
90-days simple interest penalty if CD has a maturity of 12 months or less,
180-days simple interest penalty if CD has a maturity greater than 12 months but less than 5 years, and
270-days simple interest penalty if CD has a maturity greater than 5 years.]
apologies for forgetting whoyugo) mentioned Sallie Mae Bank. It currently has a a top rate of 4.40% APY for a 15 month CD. It also has 4% CDs out to 3 and 5 years,These are direct from Sallie herself.
https://www.salliemae.com/banking/certificates-of-deposit/
If you go through Raisin, the rates are lower (perhaps analogous to getting lower rates through Schwab).
https://www.raisin.com/en-us/cd-accounts
4.3% for 9 months
4.2% for 12 months
4.0% for 18 months
but don't count on that holding for too long.
You could withdraw the IRA money into your taxable Schwab account and on the same day (or perhaps the next day to be safe) initiate a deposit into an outside CD (IRA). That would constitute a 60 day, non-trustee-to-trustee rollover. If you keep to 12 month or longer CDs, you could rinse and repeat fairly easily.