CD Rates

[JES]

In that case we should also be asking what the best money market/savings/checking account rates are.

[JES]

Countrywide has a 5.25% APY on a 50k+ money market account.

[an]

SDAppraiser, that’s my thought exactly. In normal condition where long term rates are higher than short term rates, it makes total sense to lock in a CD. But in current flat and inverted yield curve, it’s better to keep it liquid in online savings account or money market account.

[bubba99]

Last year my credit union (Patelco) went with private insurance instead of FDIC. They claim each investor is now insured up to $250,000 in “American Share Insurance”. The claim is of course that this is better than FDIC and covers the depositor completely.

Any thoughts?

[powayseller]

How solvent is American Share Insurance, and who pays if they go belly up? Does the government back them? I check the solvency of my life insurance, homeowner insurance, and auto insurance companies before I sign up; there are plenty of insurance companies which are not solvent in case of big losses.

I’m wondering why more people dont’ use Weiss ratings or Treasury bills. Both add a degree of confidence.

asianautica, thanks for the tip on the liquid CD. I will keep some money in a liquid CD. It’s a good idea to have an emergency fund, in case the car breaks down or something.

[JES]

Powayseller – How do you go about buying Tbills? they peaked my interest a few months ago but it seemed like the online govt website and bidding system was a bit complicated…

[powayseller]

I was scared off also by the “bidding” process at the government website. theplayers told me they bought Tbills, and that got me interested.

So for anyone who bought Tbills, was it complicated? Where did you buy them?

[desmond]

For T-Bills, TIPS, Bonds (I, EE etc) here is the government web site:

https://www.treasurydirect.gov/

It will answer all your questions. Buying T-Bills is very simple,just link your existing bank account with a new Treasury Direct account and follow instructions. You can buy a 7 day T-Bill for the minimum of $1,000.00 to get your feet wet. All past auction results are posted giving you the interest rates, and auctions are held weekly. Do not be intimidated by the word “auction”, it is the govenments was of “selling” you a T-Bill. I rate the site an A+.

[JES]

I looked at that site again and it was clearer this time!

Looks like you can buy direct rather than a competitive auction. Rates for the 28-day t-bill are a little over 5%, much higher than the best 1 or 2 month CDs.

Thanks

[JES]

For the Navy Fed 18-month share account, any opinions on that? The rate is great at around 6.25%…

[Chrispy]

Imperial Capital Bank (downtown SD) has a 5.3% three-month CD, 5.5% six-month, etc.

[powayseller]

Has anyone checked out the Weiss ratings on these banks? Or are we trusting FDIC? I always worry about banks which hold a lot of residential loans. Do these banks hold a variety of loans, so no residential concentration?

[waiting hawk]

I have a 5.25% ING Direct CD and a money Market I add 3k a month to at 4.35%.

After Fed’s pause the one year CD went from 5.25% to present 5.20% APY.

My website tracking Temecula and South Riverside County

[SD Realtor]

Guys I wanted to thank all of your for your posts on this.

1 – My old real estate buddy (who bailed on real estate and went into oil well investments) uses treasury direct and has been very happy with his purchases of those securities offered there…

2 – I have uses ING and Emmigrant for money market funds and was happy with the rates received.

3 – PS, I agree with your thoroughness with regards to making sure that WHOEVER you select you should check them out to make sure that they are solvent. I must admit I am negligient in that case at times…

4 – I am sure all of you know that the rate quotes have the actual rate and the APY. At first I was pretty much settling on a 6 or 7 month CD or perhaps even a liquid CD… Now I am wondering if I should go longer like 18 months as the impending recession should start to knock rates down… perhaps as soon as next spring?

So is it better to lock that nice rate in now? This would assume big B is going to stop pumping the fed funds rate and will start to reduce it as the housing market falls apart and the economy heads south…

what to do what to do….

[Anonymous]

Took powayseller advised and looked into USAA since I’m a member. 50k to 100k they are at 5.17%, over 100k they gave me 6.20% for the USAA Performance 1st Index Account. Liquid saving account to boot!

Annual Percentage Yield (APY)
Daily Balance APY
$0 – $9,999 2.22%
$10,000 – $24,999 4.80%
$25,000 – $49,999 5.06%
>$50,000 5.17%
APY applies for deposits received by 08/17/2006

[Author]

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