📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details! ⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners ⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters ⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf ⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 ruclips.net/channel/UCnexoc6tvesvcCEzZhmI-Agjoin Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY. _________ SOURCES alto.bmo.com/en-us/high-yield-cd/ savings.breadfinancial.com/products/certificates-of-deposit www.capitalone.com/bank/cds/online-cds/ www.marcus.com/us/en/savings/high-yield-cds www.synchronybank.com/banking/cd/ www.raisin.com/en-us/cd-accounts/ home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics banks.data.fdic.gov/bankfind-suite
Now that I've discovered T-Bills and brokered CDs, I don't expect to be stuck with the hassle of dealing with the individual banks ever again! Thaks, as always, for another thorough video.
@@goldie7924 I had a TD Ameritrade account that got Schwabbed a few months ago, but I stayed with Schwab. I also recently opened a Fidelity account, and I've noticed that they sometimes have offerings that Schwab doesn't have, and vice versa. I'm told that Vanguard also has this product, but I found their account opening process much more burdensome than the others so I abandoned it very quickly. Hope this helps!
@@teacherdavid--eatplaylearn5013 The good lady who runs this channel has already posted some excellent videos on the subject. Also, if you plug (for example) "brokered CD Fidelity" into your favorite search engine there is plenty of information and opinions. Hope this helps.
HI Jen, nice video as always but you should also highlight for those looking for periodic income from the CD that some of the CD's pay only at maturity. I know Raisin's CD offerings fall into this category...good for savors but not so much if you're looking for monthly or semiannual income. Regards, Phil
This was great, Thank you. Many of us have Living Trusts and not all financial institutions will accept this type of account ownership. Is that anyway you could include that information in the future CD videos. Thanks
Western Alliance Bank on Raisin was offering a 5.4% 16-month No-Penalty CD as of a few days ago. I went to verify it, but they apparently just removed it. I was considering it, but I guess as rates start to tick down slightly (or at least they think they will), the banks will be pulling these enticing packages. So I'm just continuing with the T-Bills for now. As long as they all remain over 5%, I'm fine with the government continuing to hold my money.
Since I found out that you don't pay state taxes on interest for US Treasuries, I have only been purchasing CDs inside my IRA. Although the rates can be a little less for Treasuries, the after tax is typically a higher return than CDs.
I think to buy CDs by opening an additional account is just too much to handle. I prefer to buy brokered CDs through the broker unless the CDs are offered by the banks that I'm currently banking with. Bought a brokered CD 12-month term offered by JP Morgan & Chase, rate is 5.7% and callable after 6 months.
I'm all locked up in CD land: three 10 month CDs at 5.50% with Citizens Bank, one 12 months CD at 5.30% with Goldman Sachs, and an older 18th month CD at 4.40% at Goldman Sachs. Earning just over 1k/month. They all mature by next November. If rates have dropped by then I'll be moving that cash into dividend stocks and expect to be making at least 2k/month in 2025.
Thanks Jen. Because of you, I have been slowly adding to my fixed income portfolio. Added a BMO CD too. All has worked well till now with opening of the account. Funding it shortly and will update again.
I recently started learning more about investing, and your videos have been so helpful. I’ve recommended them to friends. I really appreciate how you include links to your other videos! Thanks to you, I bought my first Treasury bills! ❤
Thanks for the information Jen but I will stick with my 30 day treasuries that pay me 205 every week and that cash gets deposited into a citi high yield interest account paying 4.45%
Could you please do a video how to estimate returns? What does it mean that 5 percent returns in two years me. Is it investment*% or is there a sort of compound interest invovled√?
I don’t know others, but I know Marcus is giving 4.40% on regular saving account now with $0 minimum, unlimited withdrawals and no fees & penalties. Their CD rates are pretty good too, all above 5% for less than 18 months.
So on that Seattle bank CD do they allow you to NOT renew it? I’m confused by their footnote. Surely they don’t expect you to leave your money there forever in a continual renewal?
Most CDs have a short grace period either before or after the maturity/ renewal date, during which you can cancel/ close out the CD without penalty - would suggest calling them directly to confirm
Most of my funds are in 13 month T-bills only because I don't want to tie up my money for much longer. But I did find the 18 month 5.8 from Seattle Most intriguing!
Always like your videos, but I have a question. Did you abandon broker CD's I just looked and I am seeing 5.70% for 10-12 month Broker CD"S. ( callable )
Marketing. APY includes the effects of compounding, while interest rate does not. Thus, for any situation where interest compounds more frequently than annually, APY will be a higher number, which looks better.
Whoa! 😲 That 60 month CD from BMO ALTO is something else! Is it really call protected? If I had extra cash kicking around, then I would seriously consider it.
Hi Boris - It appears to be call-protected based on what we could find on their website. We haven't opened one up with them though, so would suggest calling/ emailing them to confirm. If you do, let us know what how things work out.
Question. I’ve been buying tbills in my E*TRADE account. This money is from a rollover 401(k). Since it is in a 401(k), should I just be buying callable CDs at a higher interest rate because it wouldn’t be taxed anyway. Am I correct? Chase has a 1 yr. callable 5.7%.
📢 We've launched! Get 15% off our brand-new bond courses thru 11:59PM ET on 4/30/2024 for Financial Literacy Month - enter coupon code bondfans2024 at checkout - see links below for more details!
⭐ Bond Beginners (our foundational-level bond course): www.diamondnestegg.com/bond-beginners
⭐ Bond Masters (our intermediate-level bond course): www.diamondnestegg.com/bond-masters
⭐ Or get both & save $100: www.diamondnestegg.com/home#_paa2isucf
⭐ Join our super-supersaver membership for regular market updates & monthly live member Q&As 👉 ruclips.net/channel/UCnexoc6tvesvcCEzZhmI-Agjoin
Thanks for visiting our personal finance channel! We hope this content will help fast-track your financial journey! Everyone's financial journey is different. Please note that: 1) there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances & 2) we will not ask you to call us or send us money in the comments on this channel or any of our other social media accounts, so if you see comment(s) along those lines, it is most likely spam - PLEASE DO NOT ENGAGE WITH SPAMMERS OR GIVE OUT YOUR PERSONAL INFORMATION FOR YOUR OWN SAFETY.
_________
SOURCES
alto.bmo.com/en-us/high-yield-cd/
savings.breadfinancial.com/products/certificates-of-deposit
www.capitalone.com/bank/cds/online-cds/
www.marcus.com/us/en/savings/high-yield-cds
www.synchronybank.com/banking/cd/
www.raisin.com/en-us/cd-accounts/
home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics
banks.data.fdic.gov/bankfind-suite
Now that I've discovered T-Bills and brokered CDs, I don't expect to be stuck with the hassle of dealing with the individual banks ever again! Thaks, as always, for another thorough video.
Where / how are you getting your brokered CDs? I'm new ty
@@goldie7924 I had a TD Ameritrade account that got Schwabbed a few months ago, but I stayed with Schwab. I also recently opened a Fidelity account, and I've noticed that they sometimes have offerings that Schwab doesn't have, and vice versa. I'm told that Vanguard also has this product, but I found their account opening process much more burdensome than the others so I abandoned it very quickly. Hope this helps!
Most in here seem to use Schwab, Fidelity and Vanguard. Look at the other videos on brokered CDs. GL.
I want to know MORE about brokered CD, too! Thank you.
@@teacherdavid--eatplaylearn5013 The good lady who runs this channel has already posted some excellent videos on the subject. Also, if you plug (for example) "brokered CD Fidelity" into your favorite search engine there is plenty of information and opinions. Hope this helps.
This is so timely for me! I've got some 3 month tbills maturing next Friday and I'll be buying an 18 month CD with those funds.
HI Jen, nice video as always but you should also highlight for those looking for periodic income from the CD that some of the CD's pay only at maturity. I know Raisin's CD offerings fall into this category...good for savors but not so much if you're looking for monthly or semiannual income.
Regards,
Phil
Thanks Jen. Your videos are my caffeine for the day!
This was great, Thank you. Many of us have Living Trusts and not all financial institutions will accept this type of account ownership. Is that anyway you could include that information in the future CD videos. Thanks
Western Alliance Bank on Raisin was offering a 5.4% 16-month No-Penalty CD as of a few days ago. I went to verify it, but they apparently just removed it. I was considering it, but I guess as rates start to tick down slightly (or at least they think they will), the banks will be pulling these enticing packages. So I'm just continuing with the T-Bills for now. As long as they all remain over 5%, I'm fine with the government continuing to hold my money.
Since I found out that you don't pay state taxes on interest for US Treasuries, I have only been purchasing CDs inside my IRA. Although the rates can be a little less for Treasuries, the after tax is typically a higher return than CDs.
You still have to pay Federal taxes on Treasuries..
he said state taxes
I think to buy CDs by opening an additional account is just too much to handle. I prefer to buy brokered CDs through the broker unless the CDs are offered by the banks that I'm currently banking with. Bought a brokered CD 12-month term offered by JP Morgan & Chase, rate is 5.7% and callable after 6 months.
Absolutely correct
Thanks for the video Jen!
I'm all locked up in CD land: three 10 month CDs at 5.50% with Citizens Bank, one 12 months CD at 5.30% with Goldman Sachs, and an older 18th month CD at 4.40% at Goldman Sachs. Earning just over 1k/month. They all mature by next November. If rates have dropped by then I'll be moving that cash into dividend stocks and expect to be making at least 2k/month in 2025.
Thanks for sharing
Thanks Jen. Because of you, I have been slowly adding to my fixed income portfolio. Added a BMO CD too. All has worked well till now with opening of the account. Funding it shortly and will update again.
I haven't done the math but I think that with a 5% state income rate T-bills are a better deal
Not sure if you've seen it, but the calculator in this video can offer some general guidance: ruclips.net/video/j5FQtbUoPtc/видео.html
Can you do every month regarding CD rate for your subscribers? Thanks.
I'm staying with 17 & 26 week Tbills due to CA state taxes. Also have a couple of CD's at local credit union.
Thanks for sharing!
Wondering about Raisin...are investors having good things to say about it?
I'll try to post this question for the community to answer - I know some folks here do use Raisin
I recently started learning more about investing, and your videos have been so helpful. I’ve recommended them to friends. I really appreciate how you include links to your other videos! Thanks to you, I bought my first Treasury bills! ❤
Thanks for the information Jen but I will stick with my 30 day treasuries that pay me 205 every week and that cash gets deposited into a citi high yield interest account paying 4.45%
i'm so confused by future rates- goldman sachs projects fed funds rate to be 4.25 in 2025 and morgan stanley projects 2.35
Thanks for the info @markhill9214. I'm new and will be looking into this.
Could you please do a video how to estimate returns? What does it mean that 5 percent returns in two years me. Is it investment*% or is there a sort of compound interest invovled√?
How about a follow up on the best regular savings account rates?
I don’t know others, but I know Marcus is giving 4.40% on regular saving account now with $0 minimum, unlimited withdrawals and no fees & penalties. Their CD rates are pretty good too, all above 5% for less than 18 months.
Stay tuned - we have a savings account bonus offer video coming shortly
Synchrony 5.5 for 9 months
I have a cd with Seattle Bank. Very easy to use
Great options, and longer, fixed rate ones, too. Thanks, Jen!
So on that Seattle bank CD do they allow you to NOT renew it? I’m confused by their footnote. Surely they don’t expect you to leave your money there forever in a continual renewal?
Most CDs have a short grace period either before or after the maturity/ renewal date, during which you can cancel/ close out the CD without penalty - would suggest calling them directly to confirm
Most of my funds are in 13 month T-bills only because I don't want to tie up my money for much longer. But I did find the 18 month 5.8 from Seattle Most intriguing!
Always like your videos, but I have a question. Did you abandon broker CD's I just looked and I am seeing 5.70% for 10-12 month Broker CD"S. ( callable )
Has anyone had Any experience with BHO Alto .
Funny thing about risk. Sometimes the perceived risk can be low and the actual risk can be high. And vice versa.
my FAVORITE!! 🤑
please do at least 1 video like this EVERY month!🤩
thank you SUPER much!☺
Jesus loves everyone😇🥰
Not a fan of auto renew.
Thanks Jen, you the best
Jen, do you still think rates will go higher from here or this is the end of rate hike?
State Bank of Texas is offering 12 month CD at 5.85% apy nationwide. Is anyone aware of this bank?
I just looked at it and you have to have 50,000 to open it. That’s a lot of money to start.
I just looked at it and you have to have 50,000 to open it. That’s a lot of money to start.
Why do financial institutions use APY instead of APR?
I'm curious too - let's get that on the list for Dec Q&A
Marketing. APY includes the effects of compounding, while interest rate does not. Thus, for any situation where interest compounds more frequently than annually, APY will be a higher number, which looks better.
Thanks for the explanation 😊
Great stuff . This is how I found a cd from capital one 10 months ago . Thx
Auto renewal will end up lower rates.
Whoa! 😲 That 60 month CD from BMO ALTO is something else! Is it really call protected? If I had extra cash kicking around, then I would seriously consider it.
I don't think it is call protected? Do you know that it is?
Hi Boris - It appears to be call-protected based on what we could find on their website. We haven't opened one up with them though, so would suggest calling/ emailing them to confirm. If you do, let us know what how things work out.
Question. I’ve been buying tbills in my E*TRADE account. This money is from a rollover 401(k). Since it is in a 401(k), should I just be buying callable CDs at a higher interest rate because it wouldn’t be taxed anyway. Am I correct? Chase has a 1 yr. callable 5.7%.
Hi Steve. We just posted the answer to this in the member zone as we've received similar questions from other members over the past few days.
Great job on video
Dear @diamond nestegg
I want to LEARN MORE about brokered CD! 😎
Can you PLEASE provide the video links? 🤓
Thank you.🥳
Jesus loves everyone 😇🥰
ruclips.net/p/PLsv_4H5rP97Fe5-eXzDte14IYMEKHP7nc
you are AWESOME! THANK U!!!!!!!!!!1@@DiamondNestEgg
Tried to open a CD with BMO Alto but my application was rejected. Called them and they couldn't tell me why. I guess they just don't want my money. 😄
I tried also and it may be a credit freeze I have. Going to try tomorrow