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Have CD rates peaked at 5 Percent?

Andrew Hansen |

That's the highest I remember them being. Do they go higher?

by Anonymousreply 155November 9, 2023 1:30 PM

right before the tech bubble burst, the banks were paying 5% interest on savings accounts.

by Anonymousreply 2February 23, 2023 2:15 AM

Money market was 11% in the late 70's

by Anonymousreply 3February 23, 2023 2:37 AM

Does any even buys CDs anymore?

by Anonymousreply 4February 23, 2023 2:38 AM

I got 20 CDs for a penny at Columbia House!

by Anonymousreply 5February 23, 2023 3:14 AM

My mother does. I call her once a week to hear about the cds she bought and which ones are now up..it's fasicnating. She thinks she is the next wolf of Wall Street. More like the next Granny of Goodwill.

by Anonymousreply 6February 23, 2023 1:34 PM

It’s a safe haven, and you are not losing money. There just doesn’t seem to be any way to make money now. I had hoped the last year would be about buying low, but the market just keeps finding new lows.

by Anonymousreply 7February 23, 2023 1:54 PM

Hope they don't go higher, I'll be even more pissed about my shitty 3.25 percent.

I just opened a savings account at 5 percent. Hope it lasts awhile. My other savings account has been bumped up to 3.75. I don't have the gambling gene (and I worked in a casino in my 20s) so the stock market was not fun, even with blue chip stocks. I know, Mary!

by Anonymousreply 9February 23, 2023 2:30 PM

I had some money in a savings acount, just sitting there...not touching it and maybe added a little here and there. It wasn't collecting any interest, less than 1%, so I put most of it in a CD. It's for 13 months, and the interest is 4.75% (?). So instead of getting pennies in interest, I'll get around $850.00 by the end of the term. I went to a brick and mortar bank, not online...where you'd get better interest. I wasn't too confident going online. If it's going to sit there in savings, at least make it work for you.

by Anonymousreply 10February 23, 2023 6:20 PM

I have about 250K in savings - where should I invest it?

by Anonymousreply 11February 23, 2023 6:27 PM

R11 Put it in an 18 month CD at 5.25 percent, I just saw some at that rate on investopedia. You could decide later when the term is up if you want to play the market where your money is not insured but maybe better returns.

Five and a quarter percent is not chump change though. It's 13k in one year (over a thousand dollars a month if you want to extract the interest monthy to pay bills.)

by Anonymousreply 13February 23, 2023 7:55 PM

R11 if they still have money market but then it was 10,000 min but your money rolls over Twice a year. You could make a real nice chunk of change in one years time..

by Anonymousreply 14February 23, 2023 11:01 PM

[quote]I just opened a savings account at 5 percent.

Where? Most of mine are in the mid 4s. (I have about $750K in HYSAs.)

by Anonymousreply 15February 24, 2023 12:03 AM

Capital One has an 11 month CD at 5%, no minimum right now.

by Anonymousreply 16February 24, 2023 12:18 AM

r16 That's not a savings account.

by Anonymousreply 17February 24, 2023 1:15 AM

I wasn’t talking to you.

by Anonymousreply 18February 24, 2023 2:04 AM

R7 If it's less than inflation then you are effectively losing money in real terms.

by Anonymousreply 19February 24, 2023 2:07 AM

It's nice that the interest rates are going up. The rates have been depressingly low for 15+ years.

by Anonymousreply 20February 24, 2023 2:10 AM

WOW! Where are these banks giving considerably high rates on CDs and savings ? My bank is still doing .02% on savings, 2 % on 18 month CDs.

by Anonymousreply 21February 24, 2023 2:24 AM

R21 You always have to shop around to get the best deals in my experience. Loyalty means nothing these days.

by Anonymousreply 22February 24, 2023 2:28 AM

I have 2 banks where I have accounts. One (credit union) has 4.25%, the other (American Express) has 4.50%. Talking about CDs.

by Anonymousreply 23February 24, 2023 2:29 AM

Here's an offer from Capital One, r21.

Offsite Link
by Anonymousreply 24February 24, 2023 2:30 AM

Why tie your money up? My CIBC US savings account is paying 4.01% and I can take the money out if I need to.

Offsite Link
by Anonymousreply 25February 24, 2023 2:32 AM

Highest appears to be 5.15% as of 23 Feb.

Offsite Link
by Anonymousreply 26February 24, 2023 2:36 AM

R15. It's Primis Bank but I see now it's down to 4.33%. They'll probably lower mine soon then. That's the problem with savings interest, it's not fixed.

by Anonymousreply 27February 24, 2023 3:21 AM

I like CDs. The stock market only averages around 6% a year (the 10% is a myth) so bonds or CDs are good if you don’t want to risk losing your principal.

by Anonymousreply 28February 24, 2023 3:25 AM

[quote] Why tie your money up?

Because interest rates are fixed on CDs but not savings. It doesn't look like the Fed will be lowering them any time soon but when they do, your savings account interest will start dropping every month.

by Anonymousreply 29February 24, 2023 3:26 AM

Per Investopedia (scroll down past the advertiser section), the top right now is CFG Bank at 4.55%.

Offsite Link
by Anonymousreply 31February 24, 2023 3:46 AM

In 1981, I was working as a page in a university library where we got in many newspapers and remember seeing ads for CDs that were paying around 18%.

Of course, that pointed out a different economic problem, but my grandparents were happy.

by Anonymousreply 32February 24, 2023 3:50 AM

I’ve seen some at 5%. As people stay out of the stock market, rates could go up. But those days of super high savings or bond rates are over.

by Anonymousreply 33February 24, 2023 3:54 AM

I worked a Japanese bank as the ten year 16.5% CDs matured - old Japanese clients cried over the 2% return on rollovers.

by Anonymousreply 34February 24, 2023 4:23 AM

Don’t forget 6.89 o series EE savings bonds through April. The closest low risk hedge against inflation.

by Anonymousreply 35February 24, 2023 12:24 PM

My checking account was 15% for over $1,000 USD in 1984.

10% was very common for checking accounts in the 80s.

by Anonymousreply 36February 24, 2023 12:26 PM

If the rate isn’t what you want…buy a boxer instead

by Anonymousreply 37February 24, 2023 12:27 PM

R19, there doesn’t seem to be any place not to be losing value in relation to inflation. Not banks, not the market, not real estate.

by Anonymousreply 38February 24, 2023 12:29 PM

R37 I thought you said Boxster lol. Probably a better investment these days

by Anonymousreply 39February 24, 2023 12:29 PM

[quote] My checking account was 15% for over $1,000 USD in 1984. 10% was very common for checking accounts in the 80s.

Brought to you by the Reagan Administration.

by Anonymousreply 40February 24, 2023 1:00 PM

R21, Shop around. Google CD interest rates. I opened up my CD at Wells Fargo.

by Anonymousreply 41February 24, 2023 1:05 PM

What is the catch with those 5% cd rates? Do they require other accounts to be opened at the bank? Is the 5% only on large amounts? What’s in the fine print?

by Anonymousreply 42February 24, 2023 1:11 PM

R32....Yes, back then, the interest rates were very high...which is great for a savings account or CD. Imagine though, what your mortgage rates were back then....which is not good. We complain when the interest rates are now 6% or 7%. That's nothing compared to the 80s.

by Anonymousreply 43February 24, 2023 1:17 PM

Online CD or savings rates are higher because there's no brick or mortar overhead, I think.

by Anonymousreply 44February 24, 2023 1:18 PM

R42 The only catch with CDs is if you have to withdraw your money early. Depending on the fine print you pay either 6 months of interest or 12 months. The other risk is daily interest rates that keep going up and up after you locked in to one. Your bank or credit union will not raise your cd rate, I tried (I've herd of 'bump up' benefits are sometimes offered but I think it's a myth.)

by Anonymousreply 46February 24, 2023 1:27 PM

*None of banks require a checking account or savings account but my credit union did--$5.00 is all you needed in there.

by Anonymousreply 47February 24, 2023 1:29 PM

The Marcus (Goldman Sachs) cd says the following on their website:

[quote] The Annual Percentage Yield (APY) and Interest Rate are variable and may change at our discretion at any time without notice.

I thought the point of a cd was to lock in a specific interest rate.

by Anonymousreply 48February 24, 2023 1:30 PM

I moved money into Cap One CDs too.

by Anonymousreply 49February 24, 2023 1:34 PM

R48 That's only before it's opened. IOW, they advertise a 4.5% rate but you take a few days to apply they have the right to give you a different rate but tell you what it is. I have a Marcus cd and they gave me the rate they advertised even though it was a few days later. But it's annoying to and a little stressful to have that limbo period.

by Anonymousreply 50February 24, 2023 1:35 PM

[quote]In 1981, I was working as a page in a university library where we got in many newspapers and remember seeing ads for CDs that were paying around 18%.

This is why Reagan was so popular among the wealthy. This was a prime piece of 'Reaganomics" - which his VP Bush had called "Voo Doo Economics".

by Anonymousreply 51February 24, 2023 1:39 PM

I just opened two. One at Wells Fargo for 4% and one at a local CU for 4.55%. WF is 11 months and the CU is 13. This was my downpayment money, which I don’t think is going to happen in the next 12 months.

by Anonymousreply 52February 24, 2023 1:45 PM

R35 Don't you mean the series "I" bond? They're 6.89% right now. The EE shows 2.89%.

by Anonymousreply 53February 24, 2023 7:41 PM

^^^ Typo, should read: The EE shows 2.10%.

by Anonymousreply 54February 24, 2023 7:42 PM

If you live in a state with state taxes, forget the cds. Go to TreasuryDirect.gov and get a 52 week Tbill. Slightly better interest rate and you only pay Federal tax, not state tax.

by Anonymousreply 56February 24, 2023 10:15 PM

[quote] I Bonds, kids, I Bonds.

Good except you can only invest $10,000 per year and you have to hold for 5 years without penalty.

by Anonymousreply 57February 24, 2023 10:18 PM

I am more a fan of the T Bill.

I'm waiting for the Republicans to fuck up not lifting the debt ceiling for rates to spike.

by Anonymousreply 58February 24, 2023 10:22 PM

I bonds have a limit per year on how much you can buy. No state tax though when you cash them in…. I do this….part of my money in CDs, part in savings in case I need the money. If you have early CD withdrawals, you have to file a special tax form at tax time, , so only commit to the time and amount of money you feel comfortable with..

by Anonymousreply 59February 25, 2023 12:36 AM

If you cash in an I Bond after one year, you only lose 3 months of interest. It’s not much of a penalty.

There are also a lot of 3-month or 6-month rates that are good.

by Anonymousreply 60February 25, 2023 1:32 AM

There's no state income tax on I-Bonds either.

by Anonymousreply 61February 25, 2023 1:43 AM

[quote]I just opened two. One at Wells Fargo for 4% and one at a local CU for 4.55%. WF is 11 months and the CU is 13. This was my downpayment money, which I don’t think is going to happen in the next 12 months.

As pointed out above, you can get regular savings account rates at 4% and above and you don't need to tie up your money.

by Anonymousreply 62February 25, 2023 1:43 AM

[quote].As pointed out above, you can get regular savings account rates at 4% and above and you don't need to tie up your money.

*sigh* As pointed out above, savings account interest rates are variable, they can drop at ANY TIME. If you want guaranteed returns for principal and don't have to be liquid CDs are better. A CD at 5% for 18 months or 2 years is better than a savings at 4%. for that reason. . You never know what the Fed will do and when those savings interest rates start dropping it's steady.

by Anonymousreply 63February 25, 2023 1:41 PM

Here's a response to OP's actual question "have CD rates peaked".

The Federal Reserve will keep raising interest rates, according to minutes from the latest policy committee meeting (January 31-February 1, 2023). They did not state a final interest rate target, but “… all participants continued to anticipate that ongoing increases in the target range for the federal funds rate would be appropriate to achieve the Committee's objectives.”

Offsite Link
by Anonymousreply 64February 25, 2023 2:00 PM

[quote]As pointed out above, you can get regular savings account rates at 4% and above and you don't need to tie up your money.

I would add (in addition to R63), that I had accounts already at these two banks. I already have 3 checking accounts and two savings at 3 different institutions. I really don't want to open a 4th. Not that it is difficult, but there comes a point where it is a PITA to track these things. This is a reason I didn't go for the I bonds as well - another account, another login, another password, etc.

by Anonymousreply 65February 25, 2023 2:03 PM

r65 I don't think it's that much of a deal to track HYSAs. I do everything online, and I rarely even look at them unless I have to transfer money in or out (although I track them in Mint, but they do the logging in for me). But you have to make sure you stay under the $250K limit for FDIC insurance.

by Anonymousreply 66February 25, 2023 4:44 PM

So DL Investors - where would you put 250K right now?

by Anonymousreply 67February 26, 2023 2:02 PM

My mother is in her 90s and in an assisted living facility. We both have the same money manager. I’m in a much higher risk position than she is. Knowing that there are ongoing expenses for her, our advisor always has 3 month CDs to give her availability to cash.

We negotiated that the company doesn’t get any transaction fees for that particular service. If you’re looking at using a wealth manager, know that you can bargain. Certain fees are contractual, but things like my example are open to negotiation. I get that the size of the portfolio and number of accounts are what give you some wiggle room, but I’ve known people with significant assets who use these services and just accept all the fees for ongoing transactions without even discussing them with their manager.

Just a little bit of advice from a senior member of DL.

by Anonymousreply 68February 26, 2023 2:24 PM

R68, would you mind sharing some ballpark numbers? My dad just died and I have to figure out a strategy to maximize income. She has about $800k that is not getting much back and $4k in income in pension.

by Anonymousreply 69February 26, 2023 2:28 PM

[quote] where would you put 250K right now?

150K in 6 month Tbills

100K in 1 year (52 week) Tbills

by Anonymousreply 70February 26, 2023 2:30 PM

I agree with r70, but I would hedge in 3 mo T Bills til June, and we see how much the Republicans are going to fuck up the debt ceiling. They are going to play chicken, as usual, and lose as usual, but they will spike the interest rate.

by Anonymousreply 71February 26, 2023 8:35 PM

Those of you in the know, if you were nearing 50 years old and had $50,000 to invest but didn't make much money annually so couldn't risk any big losses, what would you do?

by Anonymousreply 72February 26, 2023 8:50 PM

[quote]Those of you in the know, if you were nearing 50 years old and had $50,000 to invest but didn't make much money annually so couldn't risk any big losses, what would you do?

$10,000 in I-bonds (that’s the yearly max)

The rest in Tbills and Tnotes

by Anonymousreply 73February 26, 2023 8:54 PM

Nearing 50, hmm.

AFTER the market meltdown of the Deb Ceiling Debacle, the market will have dropped sufficiently for you to buy into a company that has broad, diversified MUTUAL FUNDS. Put your money into a moderate risk portfolio until the 2024 elections.

by Anonymousreply 74February 26, 2023 9:28 PM

Does anyone have a Vanguard account?

by Anonymousreply 75February 27, 2023 3:30 AM

[quote] Those of you in the know, if you were nearing 50 years old and had $50,000 to invest but didn't make much money annually so couldn't risk any big losses, what would you do?

R72, do you have an emergency fund? If you were to lose your job, do you have enough money to pay your bills (fixed expenses) for ~ 6 months? I would calculate, roughly, how much it costs you to live per month.

Anyway, you can still "tie up" your emergency fund in a CD. If you need to break into it, then just take the penalty.

by Anonymousreply 76February 27, 2023 3:35 AM

I have brokerage accounts at Schwab and Fidelity. They make buying CDs or bonds very easy. Schwab also has a nice Income interface so you can see anticipated interest and dividends. Treasury Direct is also easy to use but it can be a hassle to set up your account.

by Anonymousreply 77February 27, 2023 4:31 AM

Any guidance on Roth IRA?

by Anonymousreply 78February 27, 2023 4:56 AM

R76, yes, I do have an emergency fund of $20,000 on top of the $50,000 that I want to invest somewhere so I can actually make it start doing something for me. But, that is all my life savings and I don't make a lot annually, so it will be hard to make up any losses and retirement is going to be pathetic as it is, if even possible.

by Anonymousreply 79February 27, 2023 5:12 AM

What is your age and what do you want the money for? I would start a Roth IRA and max out your contribution every year. You can invest in a S&P index fund each year and not worry about it.

If you want to save for a house you have to be careful about taxes if you buy and sell stock. If you want liquidity just do 3 or 6 month CDs or bonds in a ladder so you always have access to the funds.

Good luck.

by Anonymousreply 80February 27, 2023 5:42 AM

Yes, Roth IRA is a good idea. R79, does your employer have a deferred comp plan? If so, contribute the max. You can use down the $50K to supplement your income (which will be diminished due to maxing out your deferred comp). If you’re self-employed, there’s something called a SEP IRA.

by Anonymousreply 81February 27, 2023 5:49 AM

Thanks for all the info. I think it's always hard for people who don't make much to invest properly because of the fear of losing what they've worked so hard to save knowing it will be very difficult to replace any lost funds.

by Anonymousreply 82February 27, 2023 12:24 PM

The nice thing about a Roth IRA is that you're taxed up front, not deferred...like a traditonal IRA. That way, when the times comes when you need to draw on the Roth in retirement, you've already paid taxes and withdraw tax free. I wish I had a Roth back when I started my IRA, back in the 80s. I don't think they were available back then.

by Anonymousreply 83February 27, 2023 12:50 PM

I bet they start taxing Roths at some point. There will be an uproar but when has that ever stopped them. Got to keep the subservient class in their place.

On another note, they should link bank saving account interest percentages to what the bank charges in interest on their various loans. Rat bastards paying .2% while collecting 8%.

by Anonymousreply 84February 27, 2023 1:00 PM

I worked at a bank in the 1980s and remember when some long-term CDs were paying 13-15%.

I also remember when interest rates started coming down and CD's went below 10%. Some customers were outraged and closed their accounts.

by Anonymousreply 85February 27, 2023 1:28 PM

Yes and I remember buying my first house in 1985 using a mortgage at the princely rate of 12%.

by Anonymousreply 86February 27, 2023 1:59 PM

Is there a nonrisky investment that I can put my 250K in and get paid out monthly? Meaning can I get 5% return on the money paid to me as 1000 a month?

by Anonymousreply 87February 27, 2023 2:05 PM

R87 As I said in a previous post you can withdraw the interest on your CD every month. My CD bank deposits it directly into my checking account. There are some 18 month CDs paying 5,25% right now.

You don't get the compound interest doing this (interest on your interest) because you're withdrawing it every month but that's only significant if you're investing millions imo.

by Anonymousreply 88February 27, 2023 2:14 PM

What about annuities? Some pay 5%. I believe there are some that, what money you put into them, a variable?....you're money isn't tied up? I'm not too knowledgeable about them.

by Anonymousreply 89February 27, 2023 3:02 PM

[quote] Is there a nonrisky investment that I can put my 250K in and get paid out monthly? Meaning can I get 5% return on the money paid to me as 1000 a month?

Maybe bonds? But it takes time to get them to a point of paying dividends.

by Anonymousreply 90February 27, 2023 4:41 PM

[quote]What about annuities? Some pay 5%

I can't say I'm an expert R89, but annuities often get a bad rap (and rightly so). The fees and commissions often eat into the principal a lot more than traditional investments would.

A CD (or government bond) is just as guaranteed as an annuity, and you get to skip all the commission bullshit. I'm sure there are some use cases, but I don't know of one for "small" amounts of money.

by Anonymousreply 91February 27, 2023 10:56 PM

Are I bonds worth it given the high interest rate at present? If you want to put $10k somewhere and not touch it for 30 years?

by Anonymousreply 92April 6, 2023 7:05 PM

Here’s the thing to remember about Ibonds: it’s includes two different figures.

Guaranteed base rate

Adjustable inflation rate

For the long haul, make sure there is a base rate.

Several months ago, there was a 9.62% rate, but it had a zero base rate. So if the inflation rate went to zero, you wouldn’t be getting anything off that investment.

Also remember that after five years, you can cash in the Ibond without penalty, so you can always put the money somewhere else or reinvest in Ibond at a better rate.

by Anonymousreply 93April 6, 2023 8:19 PM

Thanks r93. Are EE bonds any better?

by Anonymousreply 94April 6, 2023 8:43 PM

[quote]Are EE bonds any better?

No because they may not keep up with inflation. Due to inflation, you may put in $1,000 but by the time you take it out 20 years later, it may only buy $800 worth of goods. Inflation is always the mystery card in investing.

by Anonymousreply 95April 6, 2023 11:23 PM

I went to the site and Treasury talked about the combined rate.

Huh?

by Anonymousreply 97April 7, 2023 12:18 AM

[quote] I went to the site and Treasury talked about the combined rate. Huh?

Read r93

by Anonymousreply 99April 7, 2023 12:34 AM

I Bonds are a good investment, especially for people who don’t want to risk losing their principal. They only have a one year lock up period.

I think the market will tank soon, especially as we get closer to the debt ceiling deadline. Layoffs are escalating.

by Anonymousreply 100April 7, 2023 1:19 AM

Last month, I set up my Treasury Direct account.

Today I dropped the hammer and bought @6.89%.

What say ye, DL?

by Anonymousreply 102April 15, 2023 10:53 PM

R102 Was it relatively easy to navigate the website?

by Anonymousreply 104April 15, 2023 11:01 PM

lots of good advice, i'm gonna be looking into this.

by Anonymousreply 105April 15, 2023 11:23 PM

[quote]I have about 250K in savings - where should I invest it?

Buy a rental property.

by Anonymousreply 106April 15, 2023 11:28 PM

r104, there is lots of security on Treasury Direct and the only remarkable thing is that they have an anti-keylogger sign in.

You have to enter your password using the virtual keyboard and the password in all caps. Interesting.

Setting up the account was a breeze, but I automatically log out and sign in to make sure I have set up the username and password correctly. Linking to an account was like any other account link for bill paying.

Take screenshots of your USERNAME/account# and your PASSWORD IN CAPS. You cannot paste the password.

And first they verify your email address. They will automatically send you One Time Codes for log-in.

I set up the account and linked to a savings account last month.

The transaction was easy-peasy.

by Anonymousreply 107April 15, 2023 11:38 PM

I see some at 5.15%... it'll probably still go up further depending on how much further the Feds want to raise things.

by Anonymousreply 109April 15, 2023 11:55 PM

[quote] Today I dropped the hammer and bought @6.89%.

That rate is locked in for you for six months. But on May 1 they will announce the new rate.

by Anonymousreply 110April 16, 2023 12:56 AM

R10, This is my first investment on TD. I will probably learn a lot from this investment

It is no risk and much better than the savings account I parked it in.

by Anonymousreply 111April 16, 2023 4:55 AM

Anyone have experience with Marcus through Goldman Sachs?

Good rates…

Offsite Link
by Anonymousreply 112April 16, 2023 1:43 PM

[quote]I'm still using VHS.

I'm still using cuneiform.

by Anonymousreply 113April 16, 2023 2:50 PM

r113, I've seen pictures of Russians using Abacus.

by Anonymousreply 114April 16, 2023 7:13 PM

R112 I've had Marcus Goldman CDs in the past and a current savings account which I've had for several years. The savings account is at 3.75% right now, they raise it automatically when the fed does in my experience. Two years ago the same account was .50%.

They're okay iow, not the highest rates but the website is my favorite one to navigate, verrry simple. I have also 'moved money' a lot with them with no problems.

by Anonymousreply 115April 16, 2023 7:57 PM

[quote] Anyone have experience with Marcus through Goldman Sachs? Good rates…

Just remember that with savings accounts, they can change the rate at anytime.

by Anonymousreply 117April 16, 2023 8:49 PM

Anyone have any personal experience with the Cdars program? Surprised to read the rates aren't as competitive.

by Anonymousreply 118April 16, 2023 9:03 PM

WHere would you put 150K for the best short-term (1-year) gains with relative safety?

by Anonymousreply 119April 17, 2023 1:09 AM

[quote] WHere would you put 150K for the best short-term (1-year) gains with relative safety?

Treasury Bills

by Anonymousreply 121April 17, 2023 4:22 AM

Holy ****. My credit union is up to 6.2%

by Anonymousreply 122June 21, 2023 11:13 PM

Is it still ok to buy Treasury Bills?

by Anonymousreply 123June 22, 2023 5:30 PM

What's the comparison on T bills to the others?

Updates?

by Anonymousreply 124November 4, 2023 2:44 AM

I'm risk averse, so I've been keeping most of my cash in HYSAs. I just realized that my monthly interest has gone from around $600 to around $3000 in a year's time. I can't believe I'm going to earn over $30K in interest this year. (Not looking forward to tax time.)

by Anonymousreply 125November 4, 2023 10:08 AM

What banks are your High Yield Savings Accounts in r125?

by Anonymousreply 126November 4, 2023 7:35 PM

R125, you must have a shit ton of cash in those accounts to earn $3,000/mo in interest. Do you have any investments? Are you worried about inflation?

by Anonymousreply 127November 4, 2023 8:39 PM

r127, 3K/mo= 36K/yr

assuming 5%, $36K is 5% of $720K cash. A little less if his HYSAs are paying more than 5%.

by Anonymousreply 128November 4, 2023 9:04 PM

r126: New York Community Bank

CIT Bank (Platinum Savings)

First Foundation Bank

Discover

Bread Savings

UFB Direct Money Market

Have to diversify to avoid going over the $250K cap on FDIC insurance.

by Anonymousreply 129November 4, 2023 9:07 PM

[quote]you must have a shit ton of cash in those accounts to earn $3,000/mo in interest. Do you have any investments? Are you worried about inflation?

I'm 71, have a six-figure government pension (with a COLA), a paid-for house, and a rental property. Not to mention $450K in my 401(k)-type plan that I've yet to touch.

So, in a word -- no.

Now -- who's looking for a sugar daddy?

by Anonymousreply 130November 4, 2023 9:09 PM

What happens when you move your cash to a higher yield bank?

by Anonymousreply 131November 4, 2023 9:09 PM

r131 Ummm .... you earn more interest?

by Anonymousreply 133November 4, 2023 9:58 PM

some stock tips please or T bills good to buy?

by Anonymousreply 134November 4, 2023 10:10 PM

Thanks R128, my quick back of the envelope estimate was 700 to 750K, so I was in the ballpark.

R130, I was mainly just curious about your cash to investments ratio. Makes sense knowing that you are risk adverse. I opened my Roth IRA about 6 months before the great recession. While it scared me to see it lose value, I kept contributing and so realized a lot of gains over that period. I'm just amazed you were able to accumulate that much cash. Was that over your entire career?

I'm 20 years younger than you and have barely a fraction of the cash on hand you have but do contribute 20% of my salary to retirement accounts. Now I just hope the markets stay up when I retire. And I will have a mostly paid off house by then as well.

by Anonymousreply 135November 4, 2023 10:49 PM

r133, I should have been less vague.

Are there any penalties to hopscotching your cash from bank to bank.

Do you have a graveyard of abandoned checking accounts?

by Anonymousreply 136November 4, 2023 11:26 PM

There are no penalties; no fees except certain banks charge if you want immediate transfers rather than waiting a few days.

by Anonymousreply 137November 5, 2023 12:45 AM

r135 To be fair, I did inherit some money from my mother (sold her house for around $350K.)

But I've always been one of those people who lives well below his means. And I'm starting to regret it because it's very difficult to force myself to spend my money, and since I have no heirs (closest relatives are cousins), it makes no sense.

by Anonymousreply 138November 5, 2023 12:48 AM

R138, fortunately? Your regrets are easily assuaged. There are many Americans and world citizens in need. If they do not meet your standards, I am glad to take the burden of your excess wealth via Venmo, Zelle;, or PayPal.

by Anonymousreply 139November 5, 2023 1:00 AM

R138, that's very interesting, thanks for sharing. I am also one who has lived below my means (at least since when 30's when I learned financial discipline). I'm not concerned about leaving an estate either - no direct heirs or nieces or nephews. But your talk of regret is interesting as well, because i don't want to focus so much on the future that I don't enjoy the present (but with no relatives I am assuming I'll need $$ to be cared for in my old age).

by Anonymousreply 140November 5, 2023 2:50 AM

r138 - see the last sentence of R130. Do you qualify?

by Anonymousreply 141November 5, 2023 4:15 AM

[quote] Have CD rates peaked at 5 Percent?

There are now several banks offering a 5.5% rate on CDs. I just opened a 9-month one at internet bank, Synchrony, which I've been affiliated with for two years. Really like them.

by Anonymousreply 142November 5, 2023 8:07 PM

Mine is at 5.5% Synchrony.

by Anonymousreply 143November 5, 2023 8:08 PM

Yeah, I saw some over 6% (6-month CDs) too.

by Anonymousreply 144November 5, 2023 10:43 PM

I’m going to have about 500, 000 from my dad’s estate to invest…I never did anything like this before as I’ve always been broke. A few cds sound good

by Anonymousreply 145November 5, 2023 10:49 PM

r145 Canadian Allied Petroleum

by Anonymousreply 146November 5, 2023 10:58 PM

Thank you r146 but I’m not interested in buying a whole company.

by Anonymousreply 147November 5, 2023 11:03 PM

R145, what about putting half (or more) of that in an index fund? Eventually CD rates will go down.

by Anonymousreply 148November 6, 2023 12:05 AM

That makes sense. I’m smart enough to realize at 69, this has to last me at least 15 yrs so I can’t go on a spending spree.

I own my home free and clear, will 0robably get myself a preowned SUV…but that’s all I need. Money to make repairs on the house. , the utilities are almost nothing…I suppose I could live simply on that

by Anonymousreply 149November 6, 2023 12:49 AM

Back in the early 80s, there was a time when you get close to 18% on short-term CDs.

I remember my grandparents were cashing checks and moving money from bank to bank.

by Anonymousreply 150November 6, 2023 1:57 AM

R150 at that time the mortgage rates were at about 11%

by Anonymousreply 151November 6, 2023 4:36 PM

My parents were getting 17.5% on 6-month CD's in the early 1980's.

Which was a gift, as inflation never topped 14% that year.

by Anonymousreply 152November 6, 2023 4:47 PM

You mean you guys aren't all-in on Bitcoin!? The Datalounge Bitcoin troll says it's going to $1 million! BUY NOW OR BE PRICED OUT FOREVER!!!

by Anonymousreply 153November 9, 2023 12:24 AM

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