Yes, it's incredibly high. And of course the Fed would increase the rate and the banks and t bills would all increase between the time I filmed this video and was able to launch it 🤣
@@Trust_but_Verify yes it’s because of that worry; that t bill with that rate closed this morning. Pretty sure those 4 wk rates will be available next week as well unless the debt ceiling is resolved by then which I doubt.
@@BusinessWithBrian Well keep up the great content Brian, you never really know. I mean last 4week T-Bill was at 3.9% so you are on par with the current upward trend. ;)
Great video. thanks. Just seeing it now, 5 months later I signed up for Wells Fargo 5 year CD at 5.05% not callable monthly interest payments via Fidelity brokerage. What i like about brokerage CDs is that they do not automatically renew. Nov 1, I bonds at Treasury Direct will have a new rate expected to go up to 5%, but can't take your money out for a year, ...but not subject to state taxes like a cd.
Pretty much always CDs are gonna be 5%apy. That's the highest I've ever seen other that the one you showed. My credit union offers 5% for 14 months. Currently none of the big banks like Ally offer any 5% or higher CDs.
Compound interest is really only beneficial over several years. It makes very little difference on a CD of 2 years or less. I'd like to see a 5.5% CD over 3 years.
Fidelity right now has a 4 tear CD each 1/4 is at 5.15% How can I calculate the return on it investing $250K. My math isn't that good. I would pull the interest into a high yield savings fo at least the first 6 months then consider what to do. My Marcus Goldman is paying me 4% right now. I really appreciate all the education you have done for me.Keep the videos coming. TY
@@BusinessWithBrian , Yes, MOST youtube videos of this (advice, info) are 75% fluff. This means we waste 75% of our time. BTW, because of this video I check with Vanguard, where we already have an account. It has 5.05% in 3, 6, 9 and 12 month flavors. I'll be doing a CD ladder with them. Oh, BTW, prior to seeing your video we were going to park the liquid, now in a money-market account, with a local bank CD at 4.75, so your video resulted in our making several $1,000's more, just this year. Thanks again!
Whatever the teller or product salesperson tells you at the bank or credit union, make sure it says the same in the contract. They told me my CD was redeemable at anytime, but now i discover it is locked in at 1.9% for the full year. I will move my few dollars from there when i get them back, for good.
I would go ahead and cash that 1.9% CD in early, take the insignificant penalty and reinvest it in any T Bill of 4 week, 8 week, 13 week or 17 week. They are ALL as of 05-09-2023 paying over 5%, with NO state income tax. At this date 4 week is almost paying 6%. Invest in any of those you quickly make up your measly penalty for early withdrawal. Just a suggestion. Many people think penalty on ALL the previously owned CD's that paid less than 2 to 3% but would be WAY ahead to cash them out early and reinvesting them. This is one reason the banks detests what the FED has done raising rates. The banks have had it too good for over TWO decades by loaning out money at least DOUBLE over what they have been paying on CD's and etc. RIDICULOUS!!!! Thus NO CD is "LOCKED IN" that I would ever buy. Penalty for early withdrawal yes, but at a measly 1.9%, the penalty is nothing! GOOD LUCK! On UA-cam go to DiamondNestEgg on how to buy T Bills through Treasury Direct (TD) online. She shows how to set up an account and how to invest. It is very easy to do. I was VERY reluctant because as a 70 year old I like to do business face-to-face but local banks can't sell T-Bills like they use to years ago. She also shows how to do such thru Fidelity, Schwab, and Vanguard. I tried some of those but they make you jump through too many hoops and some require a week for the account to be approved. Treasury was MUCH easier and QUICKER for me PLUS I get to keep my money in MY local bank and they withdraw and deposit from that, whereas all the others make you put money in an account you set up with them and they withdraw and deposit into that account. Well when one wants to get THAT money back from them it is just more hoops to jump through, whereas TD it is STILL at MY local bank in MY account. I don't have to go through any extra to get it out! Also with TD you can see several more possible T-Bill schedules and the MINIMUM to purchase is only $100 versus $1000 or more thru one of the brokerage firms. Also she shows how to buy I Bonds (which I never heard of) that can ONLY be done through TD, NOT thru ANY brokerage firms. 1
Haven’t bought a CD since the 70s, because there’s just too many better options out there. Today one better option is treasury bills. They pay higher rates, they’re safer, and they’re state and local income tax free. You just can’t beat them for a short term investment.
Please remember my reference in the video where I state rates will be different when you view the video. Sadly, an item you may not be aware of, is that it takes roughly 30 hours to make a video. In this case, I recorded the video last weekend. T-bills went up after the Fed raised rates a day ago. Please keep in mind the reference to rates being different due to this time difference.
Thanks Brian, but when I spoke to the Credit Union they asked how I would qualify and I said that I would pay the $5 charity. She then said that I could not use the charity since I was out of state.
Hi, I asked both Schwab and Vanguard, and they said they do not have CDs without penalty. They said you have to sell it like a bond to get out early. So how do I find the CDs without penalties? And were you going to have a link to best paying CDs?
Marcus by goldman gives 10 days bump up on their CDs and also offering bump up CD (havent look at APY on this CD) Its some good option for buyer. Btw Thanks for videos im really enjoying and learning a lot.
Thanks for the comment. I can certainly include longer time frames. Please know that as they go further out because of the inverse yield curve they will go down substantially.
Subject to change without notice... That didn't last long. As of Saturday May 6, 2023, Clearpath no longer offers the 12 mo Promo - Their 12 mo pays 1.05% w/ $10K min or 1.15% w/$50K. Their promo CD is 60 months @2.42% w/ $50K min.
Yes, I think that they may have been overwhelmed with interest from people after the video. I spoke to someone on Friday and it was still available. I'll keep a lookout for any other high rates. This one was actually brought to me from a viewer, and I shared it as quickly as I could
On those “used” or secondary market CDs, I am exploring these as a tax alternative. Yes, the earnings will still get a 1099 int. On the gain in value or discount, this will be taxed at long term capital gains assuming you hold that CD for at least a year. Buying those older CDs with at least a year to maturity and with very low rates BUT competitive yields to maturity will convert much of the earnings to long term capital gains. Your thoughts on this strategy.
As of 5/14 1:33pm PST, Newtek 3 month is 4.6%. I opened an account recently and was able to lock down a 1 month cd with them for 4.8809% and a 3 month for 4.7808%. Not too much of a difference
$10,000 CD @ 6% APY; 12 months = $600 interest earned at the end of 12 months. Same CD but 6 months: $300 interest. APY would be the same but don't misunderstand the interest you would earn. Don't think that you will earn 12 months worth of interest at 6% in matter of 6 months.
I'm learning a lot from your videos. Well organized and to the point with great production and a friendly vibe. My question: Can you give a few examples of words used in place of "callable/non-callable" that are used by banks offering CD's?
Thank you so much for the note. Your question is valid and a great one to ask. The problem is no bank is alike with how they speak to how it may be callable. The language is all over the place on this item. It frustrates me to no end. Even when I call their customer support sometimes, they're not even able to answer the question
My FA found a mutual fund with 0 penalties on withdrawals and pays monthly not annually. Currently returning 5%. I'd rather do this and still have access to my money. It does take 24-48 hours to receive money though.
Would be nice to see rates for longer cd maturities and outlook on when or if the bond yield curve could flip and long term rates may go higher in the future for bonds.
Thank you for the comment. I can easily provide longer time frames for maturities. As for the yield curve starting to flip. That's more for a fortune teller. I'm not sure I would trust anyone that said that they absolutely knew the details of when the yield curve would flip. It's an outcome we will all learn together. Thanks again for the comment
If you take out the interest and not have it compound, then it would be the fixed rate stated on the CD paperwork. In my example, I had the fixed rate of 4.89% but turns out to be 5% when compounded. If not compounded because you took interest payments.....then the fixed rate is your new APY.
Alliant Credit Union's certificates are at 5% for 12 mos, 5.15 for 18. Would love to see credit union coverage as well as your opinion about Apple's new Goldman-Sachs saving account at 4.15%.
I do like your content however you didn't mention Synchrony Bank which has a 5% CD 6 mos. I would the basic explanation of annuities particularly when you are at retirement age for products such as Allianz or American Equity.
Thanks for the comment. I have two items to point out. The first is that synchrony Bank didn't have the 5% CD when I filmed this video. The second point is that I do cover annuities in other videos. Thanks again for the comment
Thanks for being transparent another UTube stated he got a mortgage for 4.50% from a CU but no name of the CU and now the mortgage financed for a 3-3-30no
Excellent video once again, Brian! And I definitely would like to hear more about 3 to 6 year CD’s. With today’s Money Market Funds approaching 5% interest, the short-term CD’s are less interesting BUT within 6-12 months we may see the short-term CD’s and the MMF’s interest rates dropping like a rock - so need to have some 3 to 6 year CD’s locked-in to at least get us to the 2026 to 2029 period. (I remember purchasing 17% RePo’s about 1980 - yet they were only offered for 3 month time periods and soon disappeared). Thanks again and I’ve subscribed! Steve on 11 May 2023
If I find them, I'll certainly share them. The clear path one was one that a viewer had brought up to me, and then I tried to share it as quickly as possible before they pulled it down
Hi Brian, Appreciate your CD vs. Treasury video. Q. I'm down about 35k in the market (wells intitive account) If I move to a 2yr / 5% CD I will make up the loss plus a little to cover tax. My only delay to act is the hope that my currant account will move up a little. I'm really looking forward to investing in the hi interest CD market. Should I just pull the trigger or continue to hope the Bloomberg channel turns green. lol Thanks for any input. Pete Ca.
Good information as always from you. I really am not interested in longer term CDs, to answer your question, at least for now. I would be interested if you could cover more on buying CDs in a IRA account.
Cds easily purchased in my fidelity cd account Got a large lump sum in February, wanted to dollar cost average over time so invested some in various stock, bond funds Set up 10 month ladder of 5000/10000/25000, CDs 2 month to 10 months, 4.7% up to 5.25. Some pay monthly, some pay at maturity. As a 10,000 CD matures, I’ll probably reinvest 5000 of it in a CD and put the other 5000 in various stock mutual funds.
How do find out the financial strength of these institutions? Will they go bankrupt and how quickly can I get my money returned via FDIC?? Thanks for your content..
The financial strength is a moving target. You can look up reviews they can be good and yet they can still fail. Top reviews for Moody's doesn't mean a lot since banks like the recent ones that failed, had high ratings last year. However I can speak with secondhand knowledge, that FDIC pays out within one day of a bank going bankrupt. My wife's best friend was impacted from the recent issue in San Francisco.
Hi Brian, Gest videos! I just subscribed to your channel. I am in my early 50s and would like to lock in the high interest rate for.the fixed income allocation in my portfolio. What id your view about a 5-year CD or would you recommend a ladder? Thanks so much for your feedback!
Great question. It all depends on your goals and your situation. I talk about ladders in this video: ua-cam.com/video/J_wCv8TtnIk/v-deo.html But it's a personal decision based on what is right for you. If the rates drop in 6 months, will you regret having a ladder and not more money in the 5 year CD? Or do you possibly need the funds to be more liquid where a ladder makes more sense? Lot's to consider.
It depends on your goals, I think the main goal of laddering is to have less funds tied up long-term. You can build some CDs expiring at varying lengths, or multiple CDs of the same term (spaced out at maturity). I'm currently exiting my 1-month t bills and starting up weekly ones at 2 months, i.e., each week I'm buying a new 8-week t bill.
Similar to other notes on this string, it truly depends on your goals, appetite for risk, and your need for liquidity. I have a video on Ladders that covers this in quite a bit of detail. Give it a shot and let me know if you have further questions: ua-cam.com/video/J_wCv8TtnIk/v-deo.html
Brian do you have a website where a lot of this covered for the common man (raises his hand?) My son got me into Ally Bank for my savings rate, but i'd like to learn more...
Thanks so much for the note. Sadly I do not have a website. I am a bit behind from most people that have UA-cam sites. I will probably get there in time. What type of content would you find the most value from?
Save better allows one bank account linked and you can’t change it for 60 days I think. So if I put in by one account I can’t take out to another account for 60 days.
Have you seen my video on Where to Park Cash? I cover most of them in that video. If not, I can look to include in the future. ua-cam.com/video/0wSxTAxUVe4/v-deo.html
Hey Brian I have a question for you; I noticed a worrisome statement on a high yield savings account by betterment “pending transfer and deposits are not FDIC insured” - what exactly does that mean? If I transfer over money and it gets lost in cyber space I’m out of my money? Or does that mean it’s the responsibility of the depositing bank?
True, it is the responsibility of the depositing bank until it has passed the clearinghouse and truly has been deposited with the new institution. It's understandable that they will state that they are not taking responsibility, and will not cover under their FDIC insurance for funds that haven't been fully received.
We nutters are doing something right! We have the world's sixth largest economy, right on track to be the fifth. Some analysts already have us ranked at $5. How's your state doing?
If CD rate is 5% maturing in 3 months, which I see often in Fidelity, and if I do that 4 times a year, does that mean it will yield 20% of profit a year?
No, it is at a rate of 5% APY. APY is the annual percentage yield so if it's 5% you would divide that by 12 to find out what the interest payment would be per month. So if you did four of these that matured every 3 months, you would get exactly a 5% return if they were all at a 5% APY
I went to purchase a brokered cd and there was a clause that I do not understand: a selling concession is included in the offering price. Will purchasing this cd mean that my principal will be less than the offering price?
Hi, but most bank CDs now offers short term with about %4.0 to %4.45 -6months, is this safe? And worth it to open Jumbo CDs for short term? Since, everything is so high now!
They do have bad reviews. A lot from people angry the closed their account for having a negative balance. I would love to hear from somebody who has purchased a CD from them. Thanks for the comment
DID I MISS SOMETHING? Didn't you say you were going to mention a way to get out of a CD with no penalty? Sorry if I mis-heard that or missed it. I have a 4% CD that was for 1 year that I'd like to get out of which has a 3 month interest penalty. Thanks!
He mentioned 2 things - avoiding penalty by selling on the secondary market (only possible if you buy the CD thru a brokerage) and a no-penalty CDs which is an entirely separate thing, you can break the contract at any time and there's no penalty, though usually, there's a 7 to 30 biz day waiting period to get your money back depending on where you buy it and the rates tend to be lower (and there's muuuuuch less options).
@Cindy-tron answered it spot on. But no penalty CDs can allow you to pull out your funds without any penalties, as the name suggests. And that's why I made certain to showcase a no penalty CD at all of the different time frames where they were available
Thinking of selling a piece of income property and putting it to CDs. It is short term. With all the options for bank, CDs and broker CDs how do you that a Bank is safe to invest in these days?
It's a good question without a good answer. You can look at reviews and Moody's ratings, but banks that have failed had great reviews a year ago. Insurance that covers your investment is clutch, but with concerns of government default, it is creating unnecessary churn.
The safety comes through the FDIC coverage of $250,000. Per issuer. This is why brokered CDs are popular as multiple Issuers are listed to choose from through your account.
I have a number of IRA's - both traditional and ROTH. I'm considering investing in CD's but am wary about the tax issues. I would assume that a CD in the IRA would not be taxed when funds are received/disbursed from the CD when mature or sold and that ROTHS would never have taxes incurred. Would that be true? Are CD's handled just like stocks within such accounts?
I purchased two brokered CDs (4yr and 5yr) at 5.10 and 5.05% around 11/15/23. Rates across the board dropped a couple days later (after Fed no new hike news) to 4.70 and 4.65% appx BUT the value of each of the CDs in my account have shown LOSSES every day since and I am REALLY confused as to how this is possible? Seems like since I have a Cd with a higher rate than current is offered with everything else equal that the value to the market should be increasing? Please help me out here. Thanks!
So. I just inherited 130,000 dollars. I plan on paying off my house which will leave me with around 75 thousand. Would it be stupid to put all of that into a 7-18 month cd?
Or an even better question would be why would you even look at a 3-month CD that only paid 2% when there are much higher ones? In addition to that, rather than a money market account at 4.5%, have you considered a No penalty CD at 4.9%?
can someone explain why someone would buy a 3 month cd vs hysa with higher rates? to lock in the rate for those 3 months? seems like too much work for very little benefit
Sorry, I can't make that argument. In one of my videos on where to park cash, I state that anything short-term, I'd keep in a HYSA because it isn't worth the effort for me personally. But I received a lot of comments where people felt it was worth their time. Everyone is different, and we each have different needs.
my bank has a 12 month cd at 5.06 percent.But they have a 6 month cd at 4.88 percent. What if I get a 6 month cd and roll it and the interest over twice a year for nearly 10 percent. Or does it not work that way?
Just a heads up that Clear Path took down their 6% CD Saturday, May 6th. Apparently, they were getting a lot of applications.
ya saw that. Just when I was going to start one. Any other ones at 6 pct ?
I was checking that out also. Apparently they had enough money flow in and turned the offer off.
6% was amazing
SOLIDDDDD VIDEO BROOO! got offered a CD while I was getting a cashier's check, this is the first video I see and need no more. Thanks, Ed.
Glad I could help
Crescent Bank in New Orleans has 12 month CD at 5.05, 18 month at 5.10 and 24 at 5.05
Thanks for sharing these rates.
4 Week T-bill was also at 5.964% without any local or state taxes
Hoping they remain for awhile..
Yes, it's incredibly high. And of course the Fed would increase the rate and the banks and t bills would all increase between the time I filmed this video and was able to launch it 🤣
Where do you see that rate? Is it because of worry of default?
@@Trust_but_Verify yes it’s because of that worry; that t bill with that rate closed this morning. Pretty sure those 4 wk rates will be available next week as well unless the debt ceiling is resolved by then which I doubt.
@@BusinessWithBrian Well keep up the great content Brian, you never really know. I mean last 4week T-Bill was at 3.9% so you are on par with the current upward trend. ;)
Yep, got my CD at Capital one 2 months ago, 6% 11 months. Sweet. No headaches day trading anymore.
It's a nice solid return
Never have seen that high rate from Capital One ever!
How can one start?
Great video. thanks. Just seeing it now, 5 months later I signed up for Wells Fargo 5 year CD at 5.05% not callable monthly interest payments via Fidelity brokerage. What i like about brokerage CDs is that they do not automatically renew. Nov 1, I bonds at Treasury Direct will have a new rate expected to go up to 5%, but can't take your money out for a year, ...but not subject to state taxes like a cd.
I’d like cd rates up to 5 yrs, thanks for all you do, you’re very informative
You're in luck, I just launched a video tonight that has 5-year and 10-year CDs
Pretty much always CDs are gonna be 5%apy. That's the highest I've ever seen other that the one you showed. My credit union offers 5% for 14 months. Currently none of the big banks like Ally offer any 5% or higher CDs.
Compound interest is really only beneficial over several years. It makes very little difference on a CD of 2 years or less. I'd like to see a 5.5% CD over 3 years.
I agree, as the APY keeps them all on a similar field. I haven't seen a CD at 5.5% for 3 years, only MYGAs.
Fidelity right now has a 4 tear CD each 1/4 is at 5.15% How can I calculate the return on it investing $250K. My math isn't that good. I would pull the interest into a high yield savings fo at least the first 6 months then consider what to do. My Marcus Goldman is paying me 4% right now. I really appreciate all the education you have done for me.Keep the videos coming. TY
I like the direct, fast, info witout a lot of filler most other speakers add in.
Thanks, I appreciate the note. Not everyone appreciates my straightforward communication. Thanks again for the note
@@BusinessWithBrian , Yes, MOST youtube videos of this (advice, info) are 75% fluff. This means we waste 75% of our time.
BTW, because of this video I check with Vanguard, where we already have an account. It has 5.05% in 3, 6, 9 and 12 month flavors. I'll be doing a CD ladder with them.
Oh, BTW, prior to seeing your video we were going to park the liquid, now in a money-market account, with a local bank CD at 4.75, so your video resulted in our making several $1,000's more, just this year. Thanks again!
Just saw your video. America First Credit Union also offers Bump-rate CDs.
That's great to hear, thanks for the note
CD’s earning interest again was the one thing I’ve liked about the Fed raising rates
Treasuries also yields better for states with tax.
Slightly true, CD rate increases have hardly kept pace with Fed rate increases.
Banks continue to short their customers.
Whatever the teller or product salesperson tells you at the bank or credit union, make sure it says the same in the contract. They told me my CD was redeemable at anytime, but now i discover it is locked in at 1.9% for the full year. I will move my few dollars from there when i get them back, for good.
Thank you for the great reminder that you should always read the fine print.
I would go ahead and cash that 1.9% CD in early, take the insignificant penalty and reinvest it in any T Bill of 4 week, 8 week, 13 week or 17 week. They are ALL as of 05-09-2023 paying over 5%, with NO state income tax. At this date 4 week is almost paying 6%. Invest in any of those you quickly make up your measly penalty for early withdrawal. Just a suggestion. Many people think penalty on ALL the previously owned CD's that paid less than 2 to 3% but would be WAY ahead to cash them out early and reinvesting them. This is one reason the banks detests what the FED has done raising rates. The banks have had it too good for over TWO decades by loaning out money at least DOUBLE over what they have been paying on CD's and etc. RIDICULOUS!!!!
Thus NO CD is "LOCKED IN" that I would ever buy. Penalty for early withdrawal yes, but at a measly 1.9%, the penalty is nothing! GOOD LUCK!
On UA-cam go to DiamondNestEgg on how to buy T Bills through Treasury Direct (TD) online. She shows how to set up an account and how to invest. It is very easy to do. I was VERY reluctant because as a 70 year old I like to do business face-to-face but local banks can't sell T-Bills like they use to years ago. She also shows how to do such thru Fidelity, Schwab, and Vanguard. I tried some of those but they make you jump through too many hoops and some require a week for the account to be approved. Treasury was MUCH easier and QUICKER for me PLUS I get to keep my money in MY local bank and they withdraw and deposit from that, whereas all the others make you put money in an account you set up with them and they withdraw and deposit into that account. Well when one wants to get THAT money back from them it is just more hoops to jump through, whereas TD it is STILL at MY local bank in MY account. I don't have to go through any extra to get it out! Also with TD you can see several more possible T-Bill schedules and the MINIMUM to purchase is only $100 versus $1000 or more thru one of the brokerage firms. Also she shows how to buy I Bonds (which I never heard of) that can ONLY be done through TD, NOT thru ANY brokerage firms. 1
Haven’t bought a CD since the 70s, because there’s just too many better options out there. Today one better option is treasury bills. They pay higher rates, they’re safer, and they’re state and local income tax free. You just can’t beat them for a short term investment.
For the short-term, T bills are a fantastic option. And I have several different videos specifically on that.
3 month T Bill is 5.25% today, higher than those 3 month CDs you showed.
I only see 5.074% 3 month zero coupon bond. UNITED STATES TREAS BILLS ZERO CPN 0.00000% 08/10/2023
Please remember my reference in the video where I state rates will be different when you view the video. Sadly, an item you may not be aware of, is that it takes roughly 30 hours to make a video. In this case, I recorded the video last weekend. T-bills went up after the Fed raised rates a day ago. Please keep in mind the reference to rates being different due to this time difference.
@@Trust_but_Verifysame
Thanks Brian, but when I spoke to the Credit Union they asked how I would qualify and I said that I would pay the $5 charity. She then said that I could not use the charity since I was out of state.
I called them as well, and they verified the giving portion is ONLY for in-state applicants. My apologies, as that was not intentional.
Hi, I asked both Schwab and Vanguard, and they said they do not have CDs without penalty. They said you have to sell it like a bond to get out early. So how do I find the CDs without penalties? And were you going to have a link to best paying CDs?
Marcus by goldman gives 10 days bump up on their CDs and also offering bump up CD (havent look at APY on this CD) Its some good option for buyer. Btw Thanks for videos im really enjoying and learning a lot.
Thanks for the info! I'll have to check it out
Yes please. Could you do 3,5 and 10 year CDs.
Thanks for the comment. I can certainly include longer time frames. Please know that as they go further out because of the inverse yield curve they will go down substantially.
This was one of the best videos on CDs I've seen
Thanks, I greatly appreciate the comment. I certainly put a lot of time and effort into my production and editing.
First tech credit union does bump up cds. I got one recently at 5%
Wonderful, thank you for sharing
Michigan schools and Government credit union offers a one time bump cd option on their 3 year, 4 year, and 5 year cd
That's great to hear. Thank you for sharing these options.
banks outside the USA pay a much better interest, Mexico and Ecuador are around 10 percent and are in my opinion safe...
Subject to change without notice... That didn't last long. As of Saturday May 6, 2023, Clearpath no longer offers the 12 mo Promo - Their 12 mo pays 1.05% w/ $10K min or 1.15% w/$50K. Their promo CD is 60 months @2.42% w/ $50K min.
Yes, I think that they may have been overwhelmed with interest from people after the video. I spoke to someone on Friday and it was still available. I'll keep a lookout for any other high rates. This one was actually brought to me from a viewer, and I shared it as quickly as I could
On those “used” or secondary market CDs, I am exploring these as a tax alternative. Yes, the earnings will still get a 1099 int. On the gain in value or discount, this will be taxed at long term capital gains assuming you hold that CD for at least a year. Buying those older CDs with at least a year to maturity and with very low rates BUT competitive yields to maturity will convert much of the earnings to long term capital gains. Your thoughts on this strategy.
As of 5/14 1:33pm PST, Newtek 3 month is 4.6%. I opened an account recently and was able to lock down a 1 month cd with them for 4.8809% and a 3 month for 4.7808%. Not too much of a difference
$10,000 CD @ 6% APY; 12 months = $600 interest earned at the end of 12 months. Same CD but 6 months: $300 interest. APY would be the same but don't misunderstand the interest you would earn. Don't think that you will earn 12 months worth of interest at 6% in matter of 6 months.
That was my point exactly. They make the same percent at the monthly level, but they simply earn for different time durations
I'm learning a lot from your videos. Well organized and to the point with great production and a friendly vibe. My question: Can you give a few examples of words used in place of "callable/non-callable" that are used by banks offering CD's?
Thank you so much for the note. Your question is valid and a great one to ask. The problem is no bank is alike with how they speak to how it may be callable. The language is all over the place on this item. It frustrates me to no end. Even when I call their customer support sometimes, they're not even able to answer the question
@@BusinessWithBrian I agree. That's kind of a scary territory.
Thanks for the video explanation, Mr. Brian.
Any time
Pls find and report regularly on 5+ CD interest yields. Thank you!
I'll certainly add it to my list. Thanks for the comment
My FA found a mutual fund with 0 penalties on withdrawals and pays monthly not annually. Currently returning 5%. I'd rather do this and still have access to my money. It does take 24-48 hours to receive money though.
Well which fund?
Is it truly a mutual fund? Or is it something else?
Would be nice to see rates for longer cd maturities and outlook on when or if the bond yield curve could flip and long term rates may go higher in the future for bonds.
Isn't that a sign of going into economic crash when short term CD rates becomes higher than longer terms.
@@mariyork Not necessarily. It just shows that banks are not confident that interest rates will remain high over the next several years.
Thank you for the comment. I can easily provide longer time frames for maturities. As for the yield curve starting to flip. That's more for a fortune teller. I'm not sure I would trust anyone that said that they absolutely knew the details of when the yield curve would flip. It's an outcome we will all learn together. Thanks again for the comment
Thank you I find you to be comprehensible
Thank you, that is a huge compliment to me. I appreciate your note
Great info & I'm more educated after your video .thank you
Thanks for the comment! I appreciate it.
Great Video. How to you calculate APY on a CD that pays interest monthly? We are reinvesting the interest.
If you take out the interest and not have it compound, then it would be the fixed rate stated on the CD paperwork. In my example, I had the fixed rate of 4.89% but turns out to be 5% when compounded. If not compounded because you took interest payments.....then the fixed rate is your new APY.
Thank you so much for all information you provide us!❤
So nice of you. Thx!
My brokered 1 yr CD from JP Morgan Chase is 5.4%.
CMEFCU, Columbus Ohio.....bump up CD's they also have jumbo CD's up to $125,000@ 5.25% 12 months
That's fantastic, thank you for sharing this one
Alliant Credit Union's certificates are at 5% for 12 mos, 5.15 for 18. Would love to see credit union coverage as well as your opinion about Apple's new Goldman-Sachs saving account at 4.15%.
I got 5 year Goldman at 4.95
@@alexfisher1684 when did you get it?
It’s 3.8% now
@@theequalizer2727 a month ago through fidelity broker
Thank you for sharing.
marcus goldman sachs has a 5.05 10 month cd
Thanks for sharing
👍🏼 i actually just opened this one last week
I do like your content however you didn't mention Synchrony Bank which has a 5% CD 6 mos. I would the basic explanation of annuities particularly when you are at retirement age for products such as Allianz or American Equity.
Thanks for the comment. I have two items to point out. The first is that synchrony Bank didn't have the 5% CD when I filmed this video. The second point is that I do cover annuities in other videos. Thanks again for the comment
Thanks for being transparent another UTube stated he got a mortgage for 4.50% from a CU but no name of the CU and now the mortgage financed for a 3-3-30no
Thanks for the info!
You're very welcome!
Keep crushing it Brian! Thank you for your top notch videos!
Thank you so much! I greatly appreciate the vote of confidence.
Excellent video once again, Brian! And I definitely would like to hear more about 3 to 6 year CD’s. With today’s Money Market Funds approaching 5% interest, the short-term CD’s are less interesting BUT within 6-12 months we may see the short-term CD’s and the MMF’s interest rates dropping like a rock - so need to have some 3 to 6 year CD’s locked-in to at least get us to the 2026 to 2029 period. (I remember purchasing 17% RePo’s about 1980 - yet they were only offered for 3 month time periods and soon disappeared). Thanks again and I’ve subscribed! Steve on 11 May 2023
I could not find the 6% claim Ally or anyone on CD's So, what gives.
They took the 6% CD down a few days ago. I made certain to put it at the top of the comments, so that everyone would know.
Thank you for all the informations you are vert clear
You're welcome! Thanks for the note.
KeyBank offers a 6-month promotional 5.0% money market account for new monies over $25k. That's even more flexible than a CD.
BMO Harris at 5.1APY for 13 months. Online only, not at a branch.
Thanks for sharing these CD options
Huntington bank has 14 month CD 5.05 % and 5.18% APY ( compounded monthly)
thanks for sharing.
Is this a good one. Please if anyone can help me start I am so afraid to start as I have checking account just sitting and doing nothing
Clear Path Bank is no longer offering the 6% CD. Any other places that offer 6-7 CDs?
If I find them, I'll certainly share them. The clear path one was one that a viewer had brought up to me, and then I tried to share it as quickly as possible before they pulled it down
Hi Brian, Appreciate your CD vs. Treasury video. Q. I'm down about 35k in the market (wells intitive account) If I move to a 2yr / 5% CD I will make up the loss plus a little to cover tax. My only delay to act is the hope that my currant account will move up a little. I'm really looking forward to investing in the hi interest CD market. Should I just pull the trigger or continue to hope the Bloomberg channel turns green. lol Thanks for any input. Pete Ca.
The returns are solid right now so bring on the fees. Hell I might even tip.
Thank you ! Great content
Happy you enjoyed the video. Thanks so much for the nice comment
Good information as always from you. I really am not interested in longer term CDs, to answer your question, at least for now.
I would be interested if you could cover more on buying CDs in a IRA account.
Your IRA could be in a brokerage account which can just buy brokered CD.
Cds easily purchased in my fidelity cd account
Got a large lump sum in February, wanted to dollar cost average over time so invested some in various stock, bond funds
Set up 10 month ladder of 5000/10000/25000, CDs 2 month to 10 months, 4.7% up to 5.25.
Some pay monthly, some pay at maturity. As a 10,000 CD matures, I’ll probably reinvest 5000 of it in a CD and put the other 5000 in various stock mutual funds.
By the time your video was online, Clearpath was not offering a 6% CD. Their rates are much, much lower.
Actually they just dropped the rate yesterday. I know because I was on the phone with them on Friday.
How do find out the financial strength of these institutions? Will they go bankrupt and how quickly can I get my money returned via FDIC?? Thanks for your content..
The financial strength is a moving target. You can look up reviews they can be good and yet they can still fail. Top reviews for Moody's doesn't mean a lot since banks like the recent ones that failed, had high ratings last year. However I can speak with secondhand knowledge, that FDIC pays out within one day of a bank going bankrupt. My wife's best friend was impacted from the recent issue in San Francisco.
What will happen to cd values if the debt ceiling is not raised by the deadline?
Thanks for sharing, I use Fidelity for my 18-24 months CD's. Wonder if Fidelity has an addon CD.
I haven't seen any add-on CDs from Fidelity. I typically find them directly from banking institutions
Can you provide us with more information on how to understand purchasing CD's via our IRA? Thank you!
I certainly can. thanks for the request.
If your IRA is in a brokerage account look under their ‘fixed income’ heading and you will find CDs/bonds/etc.
Sure would like to hear about C Ds from Merchants in Indianapolis. My daughter worked for them in NY. Thanks
Question, what do you think of "AMERANT" with their 5.25%% APY high yield 15 month or 12 month CD for 5.00% APY?
Hi Brian, Gest videos! I just subscribed to your channel. I am in my early 50s and would like to lock in the high interest rate for.the fixed income allocation in my portfolio. What id your view about a 5-year CD or would you recommend a ladder? Thanks so much for your feedback!
Great question. It all depends on your goals and your situation. I talk about ladders in this video: ua-cam.com/video/J_wCv8TtnIk/v-deo.html But it's a personal decision based on what is right for you. If the rates drop in 6 months, will you regret having a ladder and not more money in the 5 year CD? Or do you possibly need the funds to be more liquid where a ladder makes more sense? Lot's to consider.
General Electric credit union has bump up cd’s. 3 & 5 years
thanks for sharing
Can you explain ladder cds & what strategy makes sense?
It depends on your goals, I think the main goal of laddering is to have less funds tied up long-term. You can build some CDs expiring at varying lengths, or multiple CDs of the same term (spaced out at maturity). I'm currently exiting my 1-month t bills and starting up weekly ones at 2 months, i.e., each week I'm buying a new 8-week t bill.
Similar to other notes on this string, it truly depends on your goals, appetite for risk, and your need for liquidity. I have a video on Ladders that covers this in quite a bit of detail. Give it a shot and let me know if you have further questions: ua-cam.com/video/J_wCv8TtnIk/v-deo.html
Brian do you have a website where a lot of this covered for the common man (raises his hand?)
My son got me into Ally Bank for my savings rate, but i'd like to learn more...
Thanks so much for the note. Sadly I do not have a website. I am a bit behind from most people that have UA-cam sites. I will probably get there in time. What type of content would you find the most value from?
Would like to know the best CD rates for 3, 4. and 5 year terms. Thanks.
okay....they drop off substantially, but I can look to include further on. Thanks.
Labor Credit Union has a 3 month shared certificate for 6%
Wow, thanks for sharing
Save better allows one bank account linked and you can’t change it for 60 days I think. So if I put in by one account I can’t take out to another account for 60 days.
Have you tried contacting them directly to ensure that it is fact?
@@BusinessWithBrian they told me and it’s in their terms.
With CD rates that high, it's safe to assume car loans will have high rates for the foreseeable future...
Yes, with the Fed having rates this high, it will have an impact on car loans for quite some time.
Compare the CD to money market funds, t-bills, for short term, like 6 months, which will be a better choice?
Have you seen my video on Where to Park Cash? I cover most of them in that video. If not, I can look to include in the future. ua-cam.com/video/0wSxTAxUVe4/v-deo.html
You’ll want the FDIC protection in money market funds so due diligence on their portfolio holdings is a must.
👏👏👏
Thanks!
Well done!
Thank you for the comment. I appreciate it!
Hey Brian I have a question for you; I noticed a worrisome statement on a high yield savings account by betterment “pending transfer and deposits are not FDIC insured” - what exactly does that mean? If I transfer over money and it gets lost in cyber space I’m out of my money? Or does that mean it’s the responsibility of the depositing bank?
True, it is the responsibility of the depositing bank until it has passed the clearinghouse and truly has been deposited with the new institution. It's understandable that they will state that they are not taking responsibility, and will not cover under their FDIC insurance for funds that haven't been fully received.
Good video thanks for your effort
Thanks. I appreciate your comment!
How do reinvest interest fron brokered cds? Most cds would not earn enough to reinvest the interest.
Northern bank direct is now 5.90% for 9 months
That's fantastic, I hadn't seen that one yet. Thanks for sharing
5.5
So is Clearpath a solid Credit Union. I'm always weary of anything from California seeing its like a giant insane assylum
Don't know how solid they are but if you check Google reviews, they're about as bad as any I've seen for a financial institution
Lol!
😂😂True
Really ignorant comment. I’ve invested in many California muni bonds and always done fine.
We nutters are doing something right! We have the world's sixth largest economy, right on track to be the fifth. Some analysts already have us ranked at $5. How's your state doing?
If CD rate is 5% maturing in 3 months, which I see often in Fidelity, and if I do that 4 times a year, does that mean it will yield 20% of profit a year?
No, it is at a rate of 5% APY. APY is the annual percentage yield so if it's 5% you would divide that by 12 to find out what the interest payment would be per month. So if you did four of these that matured every 3 months, you would get exactly a 5% return if they were all at a 5% APY
This is actually a very common question, and I try to go over it and provide examples in several other of my videos.
I went to purchase a brokered cd and there was a clause that I do not understand: a selling concession is included in the offering price. Will purchasing this cd mean that my principal will be less than the offering price?
Hi, but most bank CDs now offers short term with about %4.0 to %4.45 -6months, is this safe? And worth it to open Jumbo CDs for short term? Since, everything is so high now!
Bad reviews on Clearpath (the 6% credit union). Check before you invest, I was going to buy $250000 of CDs, but after their reviews, no way! Beware.
They do have bad reviews. A lot from people angry the closed their account for having a negative balance. I would love to hear from somebody who has purchased a CD from them. Thanks for the comment
hi Brokered CDs callable ? when they call cd what heaped ? cd will be close pay beck with interest or just lower interest % ?
DID I MISS SOMETHING? Didn't you say you were going to mention a way to get out of a CD with no penalty? Sorry if I mis-heard that or missed it. I have a 4% CD that was for 1 year that I'd like to get out of which has a 3 month interest penalty. Thanks!
He mentioned 2 things - avoiding penalty by selling on the secondary market (only possible if you buy the CD thru a brokerage) and a no-penalty CDs which is an entirely separate thing, you can break the contract at any time and there's no penalty, though usually, there's a 7 to 30 biz day waiting period to get your money back depending on where you buy it and the rates tend to be lower (and there's muuuuuch less options).
@Cindy-tron answered it spot on. But no penalty CDs can allow you to pull out your funds without any penalties, as the name suggests. And that's why I made certain to showcase a no penalty CD at all of the different time frames where they were available
Got a 5% CD for and only one month maturity!
Very nice
Wintrust has 5.35% 11 month
What about Raymond James Financial for brokered Cd’s?
I only know them as being an institution that offers financial advisors. For that reason, I do not deal with them.
Logix is offering a bump CD , one bump and one add on
I’ll take a BUMP or 2 please 🙏 LOL
That's great, thank you for sharing
Nice vid😁👍 just subbed
Fantastic, thanks so much for the comment
What about o.e federal credit union
What do u think about there rates for cd s
Thinking of selling a piece of income property and putting it to CDs. It is short term. With all the options for bank, CDs and broker CDs how do you that a Bank is safe to invest in these days?
It's a good question without a good answer. You can look at reviews and Moody's ratings, but banks that have failed had great reviews a year ago. Insurance that covers your investment is clutch, but with concerns of government default, it is creating unnecessary churn.
The safety comes through the FDIC coverage of $250,000. Per issuer. This is why brokered CDs are popular as multiple Issuers are listed to choose from through your account.
I have a number of IRA's - both traditional and ROTH. I'm considering investing in CD's but am wary about the tax issues. I would assume that a CD in the IRA would not be taxed when funds are received/disbursed from the CD when mature or sold and that ROTHS would never have taxes incurred. Would that be true? Are CD's handled just like stocks within such accounts?
You are correct, the CDs are sheltered within the IRA just like stock would be.
@@BusinessWithBrian what about in a 401K?
I purchased two brokered CDs (4yr and 5yr) at 5.10 and 5.05% around 11/15/23. Rates across the board dropped a couple days later (after Fed no new hike news) to 4.70 and 4.65% appx BUT the value of each of the CDs in my account have shown LOSSES every day since and I am REALLY confused as to how this is possible? Seems like since I have a Cd with a higher rate than current is offered with everything else equal that the value to the market should be increasing? Please help me out here. Thanks!
I need to obtain this kind of information more slowly. It is too much to fast. It's probable perfect for some. Not me.
How about 6 months CD from NewtexBank is 5.25 % that you didn’t mention that ??
They weren't at that rate when I made the video. Rates change in a moment's notice.
You said dividends were taxable. Are the taxable still if purchased with an IRA?
No, a tax advantaged account will shelter interest being earned from a CD. IRA will tax on withdrawals. Hope that helps.
So. I just inherited 130,000 dollars. I plan on paying off my house which will leave me with around 75 thousand. Would it be stupid to put all of that into a 7-18 month cd?
Learn Friedaannellis she will teach you step by step
Barclays has good rates on 1 year.
Thanks for sharing
I recently sold a position in my ira and the funds are still uninvested.
Could I buy cds as you demonstrated with the funds in my ira account.?
Learn Friedaannellis she will teach you step by step
Why would I go with 3 month CD for 2% when Money markets are giving me north of 4.5%…
Or an even better question would be why would you even look at a 3-month CD that only paid 2% when there are much higher ones? In addition to that, rather than a money market account at 4.5%, have you considered a No penalty CD at 4.9%?
can someone explain why someone would buy a 3 month cd vs hysa with higher rates? to lock in the rate for those 3 months? seems like too much work for very little benefit
Sorry, I can't make that argument. In one of my videos on where to park cash, I state that anything short-term, I'd keep in a HYSA because it isn't worth the effort for me personally. But I received a lot of comments where people felt it was worth their time. Everyone is different, and we each have different needs.
my bank has a 12 month cd at 5.06 percent.But they have a 6 month cd at 4.88 percent. What if I get a 6 month cd and roll it and the interest over twice a year for nearly 10 percent. Or does it not work that way?