# CD Rates



## caroln (Jun 16, 2021)

I just had a CD come due.  Went to the bank to check new CD rates and found out my checking account was paying a better rate than CDs.  Cashed out the CD of course.  Sad state of affairs....


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## fmdog44 (Jun 16, 2021)

0.57 is the highest I am getting last time I checked. Add inflation and it is a negative return.


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## Pecos (Jun 16, 2021)

caroln said:


> I just had a CD come due.  Went to the bank to check new CD rates and found out my checking account was paying a better rate than CDs.  Cashed out the CD of course.  Sad state of affairs....


I have a CD that matures in three weeks. I let a previous one roll over last year and the best they would give me was 1.05% this time they are offering me 0.55% on a $21K CD. That is just plain insulting, especially when inflation is taking off and Government I-Bonds are paying over 3.0%.


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## Victor (Jun 17, 2021)

The highest I saw is 1.1 for 3 or 4 years.  Or wait until2122 or 2123.  I took the 1.1. at a local bank


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## Aunt Bea (Jun 17, 2021)

The only thing worse than low rates is not having cash when you need it.

If the reasons for holding cash are still valid then stick with it and don't chase the yields offered by things that you do not understand or are not comfortable with.  

I try to average my low returns on cash into the returns on my other investments.   The drag of low rates on cash only drops my overall return by a few basis points and I can live with that kind of tradeoff.


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## Liberty (Jun 17, 2021)

Victor said:


> The highest I saw is 1.1 for 3 or 4 years.  Or wait until2122 or 2123.  I took the 1.1. at a local bank


Is it an online bank?  Some of those banks are "pump & dumps"...lol.  Good rate at this time.


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## Liberty (Jun 17, 2021)

Aunt Bea said:


> The only thing worse than low rates is not having cash when you need it.
> 
> If the reasons for holding cash are still valid then stick with it and don't chase the yields offered by things that you do not understand or are not comfortable with.
> 
> I try to average my low returns on cash into the returns on my other investments.   The drag of low rates on cash only drops my overall return by a few basis points and I can live with that kind of tradeoff.


So where do you put most of your investments...in the market - funds or etfs?  We always have a large amount in cash...too much cash. We're in the market of course, but I'm sitting here trying to figure out what to do with these big bucks.  Any ideas greatly appreciated.  We're coming up like $8-10 grand short each year now due to the non existent CD rates.


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## Don M. (Jun 17, 2021)

Money in the bank, CD's, and Treasuries, etc., are earning very little in recent years....certainly not enough to keep up with inflation.  About the Only way to make any money is to be invested in the markets....and be willing to ride out the ups and downs.


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## Liberty (Jun 17, 2021)

Don M. said:


> Money in the bank, CD's, and Treasuries, etc., are earning very little in recent years....certainly not enough to keep up with inflation.  About the Only way to make any money is to be invested in the markets....and be willing to ride out the ups and downs.


Yes, that's the truth.  It does make you a bit nervous though to keep adding  so much cash back into the market when you are in  the "drawdown phase" of life...lol.  Maybe got way less time to make it back in a crunch!


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## Aunt Bea (Jun 17, 2021)

Liberty said:


> So where do you put most of your investments...in the market - funds or etfs?  We always have a large amount in cash...too much cash. We're in the market of course, but I'm sitting here trying to figure out what to do with these big bucks.  Any ideas greatly appreciated.  We're coming up like $8-10 grand short each year now due to the non existent CD rates.


No earth-shattering inside information here.

My main source of income for day-to-day expenses comes from Social Security.  The income from my taxable accounts is available for splurges or unusual expenses.  What doesn't get spent gets reinvested.  My IRA distributions are reinvested and continue to grow.

I use a money market fund for cash reserves various balanced and stock index funds offered by Vanguard for my taxable accounts and IRA.

I'm not rich or a savvy investor.  I'm what the old folks in my family used to call _comfortable_.

_"There is no dignity quite so impressive, and no one independence quite so important, as living within your means."_ - Calvin Coolidge


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## Liberty (Jun 17, 2021)

Aunt Bea said:


> No earth-shattering inside information here.
> 
> My main source of income for day-to-day expenses comes from Social Security.  The income from my taxable accounts is available for splurges or unusual expenses.  What doesn't get spent gets reinvested.  My IRA distributions are reinvested and continue to grow.
> 
> ...


Love it.  Ditto here...was nice to see that "inflation protection" CD rates coming in though.  Seems like you never take anything out of the market...lol.  Guess the heirs will.


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## Ruth n Jersey (Jun 17, 2021)

I had a cd mature last week. I thought I'd try online banking and got so confused trying to figure out passwords, and then they wanted me to ok the transfer of funds by sending me two deposits. Then they wanted me to put a code in a place that they said I asked for. I have no idea what that was all about.
Finally I said enough is enough. I found an unadvertised local bank offering 1%. It matures in 5 years. I may not be around to collect but it was a small cd and the kids are beneficiaries.
I could hear my mom in the background saying. "don't be greedy."  
She did all her banking in local banks if the rates were down, so be it.
Now its in a local bank and  I didn't have to pay wiring fees.
My mom has been gone for 15 years and she still gives me good advice . To bad I have to learn the hard way, sorry mom, next time I will listen.


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## mathjak107 (Jun 17, 2021)

Many banks have good promos …we just got 1500 from citi bank and now are going to do TD bank


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## Chet (Jun 17, 2021)

The system is rigged so you invest in the stock market. The Secretaries of the Treasury all come from Wall St.


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## Liberty (Jun 18, 2021)

Chet said:


> The system is rigged so you invest in the stock market. The Secretaries of the Treasury all come from Wall St.


Certainly not designed for true "savers" that's for sure.  Kind of sad, isn't it!


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## mathjak107 (Jun 18, 2021)

Even in the high inflation 1970s returns on cds were negative real returns ..it is just a function of inflation vs rates


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## Liberty (Jun 18, 2021)

mathjak107 said:


> Even in the high inflation 1970s returns on cds were negative real returns ..it is just a function of inflation vs rates


That's true, but investing in the market can be worrisome for a lot of folks.  The CD rates will come back up in a year or so right after the Fed figures out the total inflation isn't "temporary" and raises the interest rates...duh!

   Personally, I took our lifespan guesses, deciding how much "extra money" we would need to live in the lifestyle to which we had so loved and become accustomed to, added a few years on to that - socked the money away in fixed insured savings, and plunked down most of the rest of the dough in cheap DIY index funds...lol.


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## mathjak107 (Jun 18, 2021)

the best way is a diversified approach 

I don’t carry high equity levels anymore , don’t need to ..30-40% works fine .

the last few days I am accumulating the inflation hedges , commodities via dbc and gold via Gld .

they will ride shotgun alongside my core portfolio of equities, bonds and cash


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## Liberty (Jun 18, 2021)

mathjak107 said:


> the best way is a diversified approach
> 
> I don’t carry high equity levels anymore , don’t need to ..30-40% works fine .
> 
> ...


They better sew some bigger pockets in your shroud cause you might think you are going to take it with you...lol.    Or maybe you are giving a lot away to charity these days?

I like to keep it simple.  Passive income, lazy portfolio,  not an all consuming interest pursuit for this old chick...got lots of other nature interests...too many interests, too little time...ha ha.

Good advice, though about commodities. Gotta work them though.


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## mathjak107 (Jun 18, 2021)

Between living in ny , having six grand kids to do things with and all the things my wife and I like to do or buy having to much is not an issue ..spending more than we should is


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## Liberty (Jun 18, 2021)

mathjak107 said:


> Between living in ny , having six grand kids to do things with and all the things my wife and I like to do or buy having to much is not an issue ..spending more than we should is


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## mathjak107 (Jun 19, 2021)

just did the td bank beyond savings today for 400 bucks  in promo dollars for my wife and i .

we got 1500 from citi bank last week


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## Uptosnuff (Jun 19, 2021)

Liberty said:


> So where do you put most of your investments...in the market - funds or etfs?  We always have a large amount in cash...too much cash. We're in the market of course, but I'm sitting here trying to figure out what to do with these big bucks.  Any ideas greatly appreciated.  We're coming up like $8-10 grand short each year now due to the non existent CD rates.


I used to buy CDs and Savings Bonds back when they were paying some interest but haven't done that for years.  The only thing I can see right now that's paying anything is the market.  I have my investments in mutual funds and ETFs.  And we do take money out of them when we need to.  Yes, you get taxed but only on the capital gains.

We have very little money sitting around not working for us.


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## Liberty (Jun 20, 2021)

Uptosnuff said:


> I used to buy CDs and Savings Bonds back when they were paying some interest but haven't done that for years.  The only thing I can see right now that's paying anything is the market.  I have my investments in mutual funds and ETFs.  And we do take money out of them when we need to.  Yes, you get taxed but only on the capital gains.
> 
> We have very little money sitting around not working for us.


But, now, in weeks like this past one, it would be easy to see the market taking and inflation dive, hitting rock bottom and thentaking quite a while to grow it back.  Not nice for old folks to be forced into putting so much of their savings into the market.  Thank heavens we aren't in that position.


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## mathjak107 (Jun 21, 2021)

Even at 65 we have money we won’t eat with for two to three decades ….that is still very long term money , you have as much recovery time as you did in your younger years .

a 40 to 60% equity portfolio allows you enough short term and intermediate term money to be safe whilvkeep that long term money invested ….a 50/50 has never ever lost a penny in any ten or twenty year period or longer


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## Liberty (Jun 21, 2021)

mathjak107 said:


> Even at 65 we have money we won’t eat with for two to three decades ….that is still very long term money , you have as much recovery time as you did in your younger years .
> 
> a 40 to 60% equity portfolio allows you enough short term and intermediate term money to be safe whilvkeep that long term money invested ….a 50/50 has never ever lost a penny in any ten or twenty year period or longer


Yes, I know that, but feel for all those old folks who don't have that "decades" of long term money they won't have to touch.  Its only then you really feel "ok" about shoveling it in the market and hoping you won't have to wait another decade to not lose any of it and hopefully might be able to keep up with inflation.

Somewhere between that option and the zero CD "savers" options should be a real OPTION for those folks, don't you think now?  Like maybe a nice 3% for a couple year CD or something. We used to have that.


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## mathjak107 (Jun 21, 2021)

_if people are planning to live off  their portfolio over their lifetime they ALWAYS have the same long term money …_

The math and allocation is the same whether they are drawing 4% of 250k or  4% of 2.5 million .

the ratio of short , intermediate, and long term money  is the same..

a 50/50 provides the same longevity of the money , success rate of not failing and percentage of draw in both cases


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## Uptosnuff (Jun 21, 2021)

Liberty said:


> But, now, in weeks like this past one, it would be easy to see the market taking and inflation dive, hitting rock bottom and thentaking quite a while to grow it back.  Not nice for old folks to be forced into putting so much of their savings into the market.  Thank heavens we aren't in that position.


We are in a volatile market now.  It might tank this week but be right back up there next week.  That is what I have seen with our accounts the past several weeks.  For us, we can ride it out without too much problem. The problem comes when your risk tolerance is low and you don't want to put up with that up and down volatility. 

You are right that there doesn't seem to be a decent return on "savings" type investments other than in the market.


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## Don M. (Jun 21, 2021)

The markets Always have their "ups and downs".  In many cases, I tend to believe the theory of "go away in May, come back in Sept".  But the few times I've tried to "time" the markets, I've guessed wrong.  I just accept the downturns, and hope for recovery.  Staying diversified, and not stressing over every "glitch" seems to be the best approach....after all, there is nothing I can do to influence the markets.


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## Liberty (Jun 22, 2021)

Yes, Don.  Don't believe you can "time the market".  I tell those beginning to invest, just get in there and don't look back.  So many don't invest though and then when its time for retirement to come around they just aren't ready.  Really do feel for them.

Pedro mowed the 6 acres around this big joint yesterday and it looks like a green velvet park.  We treasure each golden hour we have here, living the dream...lol.  Would wish the same for others!


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## rkunsaw (Jul 4, 2021)

I just sold some stock, and have the cash making almost nothing. I have  a list of stocks I want to buy but most of the are at a high point right now. I'm hoping for a quick drop in the market so I don't have to keep so much cash for too long.


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## Liberty (Jul 4, 2021)

rkunsaw said:


> I just sold some stock, and have the cash making almost nothing. I have  a list of stocks I want to buy but most of the are at a high point right now. I'm hoping for a quick drop in the market so I don't have to keep so much cash for too long.


Why not just put it into an index fund?


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## Don M. (Jul 4, 2021)

rkunsaw said:


> I just sold some stock, and have the cash making almost nothing. I have  a list of stocks I want to buy but most of the are at a high point right now. I'm hoping for a quick drop in the market so I don't have to keep so much cash for too long.



Good luck...if you have the same experiences I've had in trying to time or predict the markets.  If you are retired, and expecting to generate some income from the markets, I would think that investing in a diversified, and fairly conservative portfolio of mutual funds, would be far less risky than individual stocks.  There are any number of good funds out there which have a long history of generating good positive returns.  Let the "professionals" stress out over every rise and fall of the markets, while they try to keep your balance moving in a positive direction.


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## Aunt Bea (Jul 4, 2021)

I've resigned myself to the fact that every time I put new money into the market it will drop before it begins to go up and create value for me.

The good news is that over time the trend has always been up.


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