Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
Just a note that in addition to the actual Financial Health Rating, there is a description/overview description of the bank being reviewed. You should be looking at both the Rating and the Overview of the Bank. For example, with Republic Bank, this…
I would just add that you should also consider the type of account, and term length of the CD. I tend to buy shorter term CDs in my taxable account, and slightly longer term CDs in my IRA account. I also focus on a laddering system of short term CD…
I had a 4% "brokered" CD mature yesterday, and I chose to reinvest the principal into a new 5% "brokered" CD. As long as I can get a guaranteed 5% interest on CDs, they will continue to be a very viable investment option for this retired investor. …
Brokered CDs have significant differences with Bank CDs. Bank CDs have very little drama, maintaining their "principal" value, with minimal change, but Brokered CDs will see their "principal" value change significantly during the holding period, o…
Yogi: "Many banks also offer unusual 11-mo, or 13-mo CDs as those one-time deals may not show up on industry wide 12-mo, 18-mo, 24-mo offering data."
Yep, I do my banking at Capital One, and that bank offers those types of CDs. I hold enough mon…
Lots of CDs at Schwab are now paying 5%. I suspect some of this may be due to the reducing fear of bank closures. I am expecting rates to go a bit higher before the end of April.
It looks like tremendous volatility for the remainder of 2023. If you are a great trader, maybe you can play the volatility to your advantage. The banking sector is so riddled with doubts, that the risk could be a lot of falling knives possibiliti…
In trying to focus on what Jan is considering, for her personal situation, I don't see much risk. She sounds like a very conservative low risk investor, and putting a portion of her savings into a credit union CD, with government protections, appea…
I simply transfer my RMD amount from my brokerage IRA, into my brokerage joint tenant/taxable account. It is a cash to cash transfer, but once the RMD amount is in my joint tenant/taxable account, I then move the cash into a brokerage MM account…
The penalty for brokerage CDs can be very substantial, compared to the penalities for Bank CDs. I am very hesitant to give advice to any other poster--circumstances and situations vary. My wife and I are retired and in our 70s, and I will say I re…
I am accustomed to MM funds having "waivers" to keep expenses low, and attract deposits. I do not put "short term treasuries" or "short term CDs" in the same category. I use MMs as holding accounts, with strong liquidity criteria. My MM accounts…
I am not concerned about a recession, resulting from a couple of troubled banks. I will be interested in seeing how the Feds react to the recent bank issues, but I am still expecting them to raise rates slightly, likely no more than .25%
I continue to buy short term CDs--bought two, 9 mo CDs, at 5.2% each, a few days ago. I limit the amount of my CDs to $50k to 100k. All of my recent CD purchases are either 6 month, or 9 month CDs. I have four other CDs maturing this summer, and I e…
As of today, SVB is still receiving an "A" rating, by the Bank Rating agencies. Those who depend on Rating agencies to identify the best and most healthy banks may want to think twice about how these rating agencies work
Short term CD rates of 5% are becoming more commonplace. My Capital One Bank has been offering 5% CDs for an 11 month period in recent weeks. Schwab has 4 banks offering 5% CDs for one year. If you go shorter for 6 to 9 months, you can get about …
Takes a million dollars to get into SNAXX, so you often must give up about .15% yield and settle for its sibling SWVXX. I was able to buy SNAXX, in one of my accounts, in March of 2022, when I sold/reduced OEFs, but since then I have been able to r…
Feds raised interest rates today by .25%--I wonder if that will lead to another hike in MM and CD interest rates soon. In the fixed income options, I continue using MM and short term CDs, and whatever cash I hold is only temporary and in small amoun…
I am not interested in Vanguard Multisector bond offerings. Vanguard has strengths in some other bond areas, but they have not demonstrated much flexibility in adjusting bond holdings, in the various categories, normally associated with more establ…
Capital One Bank is paying 3.3% for their Savings Account, and 4.15% for one year CDs. That is still below the 4.27% and 4.42% for a Money Market fund at Schwab. and I can get one year CDs at Schwab for a 4.75% Coupon rate. Capital One offers som…
I just invested in another CD for a year, focusing on the highest rated banks, for consideration. I have confidence that strong banks, will do well in this period of political brinksmanship. I do have a CDs maturing in March and June, and will co…
Unnamed Big Bang Poster: "I now have concerns with holding funds in Treasury or Government Money Market Funds. I am looking for alternatives as to where I can place these funds. Looking for options - do you have any."
I don't personally share those…
I own a small position in RPHIX, just in case I want to use it in the future, but with money markets paying over 4%, I have not found a reason to have anymore than a small token position. I will maintain it, but it would have to establish itself a…
In a current Schwab market outlook article, they see 2023 as a great year for bonds. They are recommending increasing duration of bond holdings and focusing on higher quality bonds. I am in the wait and see category, as projections are largely bas…
Invested in CDs, after selling all my investments in March of 2022. CDs and MMs saved my bacon, providing nice predictable total return, via low risk income streams. For a retired investor, focused on preservation of principal, I have ended the …
My guess is that it is a pause. I think pauses are not unusual just before the Feds make a decision about interest rate hikes, but I fully anticipate the Feds to continue with interest rates, even though they are likely going to be smaller and less…
FD: "RPHIX is a unique bond fund. I don't think you can find another one for 2022, with that kind of low SD + performance. The fund is closed to new investors at Fidelity and Schwab."
Yep, for years, this bond oef was the best alternative, to CDs a…
All of my brokered CDs have the "Survivor' Option" (commonly called a Death Put) as defined below by Investopedia. When I set up my brokerage account, I included the Transfer on Death component for my heirs.
What Is Death Put?
A death put is an op…
msf: "(I don't view MMF returns as guaranteed since they are not locked in. Though it is hard to imagine a scenario where their yields decline in the short term.)"
msf, I probably did not use the best wording in my commentary. The term "guarantee…
RPHIX TTM yield, per M*, is 2.36%, but I don't care about yield, by itself, for a bond oef like RPHIX. For a bond oef, like RPHIX, I only care about total return. For RPHIX, its YTD total return is 2.09%. Its shorter term TR is .90 for 3 months, …
Similar to previous comments, I own RPHIX, but have reduced it to a very small position since March of 2020. I can get better returns through Schwab Money Market accounts or short term CDs, but will reconsider RPHIX when I start to see a performanc…
sma3: "Maybe the "smart money" assumes that interest rates are going down in 2 to 4 years."
Personally, I have chosen to not go longer term in CDs. I will stay with a small ladder of shorter term CDs, and if I see the market conditions improving …
Seems pretty clear now that it was a Ukrainian Missile, that was attempting to shoot down a barage of Russian missiles which were launched after Ukrainian speech at the G20 meeting. When Russia is launching missiles at Ukrainian cities, accidents c…
Current CD rates at Schwab today are as follows: 3month (4.06%), 6month (4.55%), 9momth (4.6%), 1yr (4.8%), 18mo (4.8%), 2yr (4.85%), 3yr (4.9%), 4yr (4.85%), 5yr (4.0%)
Money Market rates at Schwab today are as follows:SWVXX (3.7%), SNAXX (3.85%)
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BenWP, Sorry about the spelling/spellchecker issue-- made an edit and correction to my post. Unfortunately, I am not witty enough to have done that purposely.
For me, a question that will become very relevant in 2023, is a prediction of where CD rates will settle at. If we do not experience a major, or prolonged recession, I am guessing they will settle somewhat higher, than where they are at the end of…
Lots of guesswork on this thread, based on when market conditions will become supportive of bond oefs or equities in 2023. My guess is that this market will flounder around for most, if not all, of 2023, with the Feds waiting for some sign that inf…
