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1 Year CD rates down to .8%
Posted by: Ammo
Date: August 28, 2020 01:43PM
I have a CD coming due next week and was surprised to learn that .8% is the best rate I can find for renewing (Ally Bank). I realize that I'm lucky to even have this problem, but its still kind of a kick in the pants to see savings decrease in value relative to inflation. At least home buyers are receiving some benefit from the low rates these days!



Where is there dignity unless there is also honesty? - Cicero

Be kind, for everyone you meet is fighting a battle you know nothing about. —Wendy Mass
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Re: 1 Year CD rates down to .8%
Posted by: Acer
Date: August 28, 2020 01:55PM
Might as well keep it in a vanilla savings account at .5% and not hassle with locking it into a CD. Or, perhaps in a mayo jar under your porch.
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Re: 1 Year CD rates down to .8%
Posted by: Michael
Date: August 28, 2020 02:01PM
The last time this happened I started using high interest checking accounts. They pay between 2-5%. They typically require a certain number of swipes with their debit card and/or certain amount of deposits or use of billpay.

Here's one list of possibilities: [www.investopedia.com]
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Re: 1 Year CD rates down to .8%
Posted by: mattkime
Date: August 28, 2020 02:28PM
I think my citibank account still pays 1%



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Re: 1 Year CD rates down to .8%
Posted by: freeradical
Date: August 28, 2020 03:57PM
The S&P 500 dividend yield is 1.82%
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Re: 1 Year CD rates down to .8%
Posted by: Ombligo
Date: August 28, 2020 03:59PM
I just pulled my mom's 2 CD's that went from 2.5% to .5%. She isn't going to need it anytime soon, so I threw caution to the wind and bought APPL stock. I am going to guarantee it at her investment price, so she can't lose. If it comes back strong, then she will be better off.



“No persons are more frequently wrong, than those who will not admit they are wrong.”
-- François de La Rochefoucauld

Growing older is mandatory. Growing up is optional.
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Re: 1 Year CD rates down to .8%
Posted by: mikebw
Date: August 28, 2020 04:01PM
Quote
freeradical
The S&P 500 dividend yield is 1.82%

I was gonna say it's hard to go wrong in stocks these days, but I'm actually down just a little today so, yeah.
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Re: 1 Year CD rates down to .8%
Posted by: Acer
Date: August 28, 2020 06:12PM
Quote
Ombligo
I just pulled my mom's 2 CD's that went from 2.5% to .5%. She isn't going to need it anytime soon, so I threw caution to the wind and bought APPL stock. I am going to guarantee it at her investment price, so she can't lose. If it comes back strong, then she will be better off.

That's a heck of a deal...son.
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Re: 1 Year CD rates down to .8%
Posted by: NewtonMP2100
Date: August 28, 2020 06:13PM
.....have series EE Savings bonds due in 2022......earning 4%.......got it in 1992.....



_____________________________________

I reject your reality and substitute my own!



Edited 1 time(s). Last edit at 08/28/2020 06:13PM by NewtonMP2100.
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Re: 1 Year CD rates down to .8%
Posted by: freeradical
Date: August 28, 2020 07:44PM
Quote
NewtonMP2100
.....have series EE Savings bonds due in 2022......earning 4%.......got it in 1992.....

It looks like they're "paying" 0.10% now.

The current inflation rate is around 1%

Then to add insult to injury, you have to pay taxes on that whopping 0.1% windfall.

eye popping smiley

[www.treasurydirect.gov]
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Re: 1 Year CD rates down to .8%
Posted by: Don C
Date: August 28, 2020 09:15PM
Well, it won't be a LOT of taxon that windfall!

When I inherited some money a couple of decades ago, I started a CD ladder figuring to turn them over as they came due. Plan worked for a few years but then the CD rates became so low as to not be worth the trouble.

My credit union pays 4% interest on their checking account up to $4000; rate drops pretty low above that. It requires 10 debit card transactions a month worth $500 (I think) and direct deposit. The number of transactions and value of them decreased for May, June, and July due to stay and home orders.
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Re: 1 Year CD rates down to .8%
Posted by: freeradical
Date: August 28, 2020 10:32PM
I can't even remember when the last was when I received a 1099 on the dividends paid out on my savings account with my credit union.
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Re: 1 Year CD rates down to .8%
Posted by: graylocks
Date: August 28, 2020 10:49PM
Ally regular savings just lowered to .80%. That's what Discover Savings is at also.

Fitness Bank ITR is 1.05% if you walk an average of 10k - 12k steps a day depending upon your age.



"Success isn't about how much money you make. It is about the difference you make in people's lives."--Michelle Obama
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Re: 1 Year CD rates down to .8%
Posted by: Wags
Date: August 29, 2020 09:47AM
This is an election year ploy to jack up the Dow at the expense of our retirement savings, for those of us who actually have any. It could lead to inflation run amok, another treat for the working stiff.
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Re: 1 Year CD rates down to .8%
Posted by: Michael
Date: August 29, 2020 01:22PM
Quote
Don C
My credit union pays 4% interest on their checking account up to $4000; rate drops pretty low above that. It requires 10 debit card transactions a month worth $500 (I think) and direct deposit. The number of transactions and value of them decreased for May, June, and July due to stay and home orders.

There's a number of credit unions and some banks that have high interest checking account, paying 2-4%. They typically require swipes and either deposits and/or billpays for each month. Some require that you login each month.

I have several of the accounts. I used to go to a self-checkout and split my purchases into a bunch of individual sales. The I got smart and bought a Square and sit in my chair and spend 10 min a month swiping minimums that all go to one of the credit unions.

Here's a list of some of the high interest checking account places: [www.investopedia.com]
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Re: 1 Year CD rates down to .8%
Posted by: Don C
Date: August 29, 2020 09:45PM
A few months ago, my credit union debit card stopped working. It wasn't my balance; maybe the stripe or the chip got damaged. I'll never know.

I called the credit union to get a replacement and was promised 8 -10 working day to get a new one. After 12 days, I still did not have the replacement so I called again. Order for the new card never went through so they started over. Another 8-10 day wait. When the card finally arrived it was too late to get my minimum number of transactions made in the month so my 4% was lost. I called and asked that they fix that since it was their fault that I had not met the requirements. "Sorry, I have no way to do that."

I was peeved enough that I considered closing the account, but I have been with them for more than 40 years and the amount was really not all that much so I let it slide. I did, however, compare their services to another credit union and it was better to stick with my old one, which made it easier to stay loyal.
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