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14 Month No Penalty CD @ 4.40% APY - Sallie Mae Bank by Savebetter
January 3, 2023 at
05:30 PM
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(4)
Deal Details
Last Edited by jersharocks | Staff January 4, 2023 at 01:10 PM
I've posted this before when the rate was lower, but Savebetter.com increased their no penalty Sallie Mae CD to 4.40%. I cancelled my old one and opened a new one.
Savebetter.com has a No penalty CD @ 4.40% APY. You can break this CD anytime after 30 days. With Fed Reserve increasing rates, CDs in the near future will pay better. So lock in 4.4% for now; if you find a better higher earning CD in the future, break it and lock in. There's no minimum and FDIC insured to $250,000. For the bond heads that prefer treasury bonds, the comparable 1 month fed treasury yield is 4.17%, so this yields higher and offers a guaranteed return for longer if you choose to keep it. I haven't found a better rate out there that doesn't lock in your money for a longer period.
For people that want a higher earning CD they also offer a regular 27 mo CD @ 5% APY.
https://www.savebetter.
Savebetter.com has a No penalty CD @ 4.40% APY. You can break this CD anytime after 30 days. With Fed Reserve increasing rates, CDs in the near future will pay better. So lock in 4.4% for now; if you find a better higher earning CD in the future, break it and lock in. There's no minimum and FDIC insured to $250,000. For the bond heads that prefer treasury bonds, the comparable 1 month fed treasury yield is 4.17%, so this yields higher and offers a guaranteed return for longer if you choose to keep it. I haven't found a better rate out there that doesn't lock in your money for a longer period.
For people that want a higher earning CD they also offer a regular 27 mo CD @ 5% APY.
https://www.savebetter.
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There are limits for the purchase of Series-I bonds. These have been discussed a lot on Slickdeals and are very different from a standard treasury bond.
Moving funds to a new Fidelity brokerage account from my savings so I can take advantage of the higher rates of Treasury bills...
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The only risk with treasuries is that since you can trade them on the secondary market, it's possible that their value can fall in the short term. Note that with a short duration treasury like one year, it would be hard to lose money on it if you held it for at least 2-3 months.
I don't think there is anyone who should choose a lower yielding CD with the same term as a higher yielding treasury. I can see the convenience of HYS luring people away from treasuries in exchange for lower returns, but I don't see why someone should pick this CD.
Sorry for being a total newbie, but what does it mean to trade them on the secondary market? Does that mean buying and trading them through a broker like Fidelity? Also, in states with no income tax like Washington, isn't it worth the ease of using this rather than the crappy treasury direct website?
edit : I see some people have answered by buying them through Fidelity.
so there's really no penalty to trading treasuries before maturity through a broker ??
edit : I see some people have answered by buying them through Fidelity.
so there's really no penalty to trading treasuries before maturity through a broker ??
When you trade through a broker there is no penalty because the borrower is not being repaid early. You have sold the bond to a third party who will redeem it as originally scheduled
Schwab has a better MM yield than Fidelity(less than 4%). Personally I find Schwab better than Fidelity, especially no fee mutual funds.
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https://fixedincome.fid
Hey…. Moved jobs a few years ago and most of my funds from my 401k transferred but some went into this.
You all know anything about this fund/product? Doesn't seem to earn much at all.
https://fundresearch.fi
edit : I see some people have answered by buying them through Fidelity.
so there's really no penalty to trading treasuries before maturity through a broker ??
Imagine you buy a bond for $960 and you're told you'll get $1000 back in 12 months. That's an interest rate of ~4.2%. Now let's say that you decide you need the money after 3 months. If you sell the bond for $960, then the other guy would be getting that same $1000, but in only 9 months. That's an interest rate of ~5.6%. If the going rate is still 4.2%, then he will pay you about $970.
On a short duration treasury, it takes an enormous interest rate move or a very short holding period for it to be possible to lose money. Note that this last year saw short term treasury yields increase from <1% to 4.7%, so such a thing could be possible, but losing 1% if you sold bonds early in the worst year for bonds in decades would be far preferable than the ~20% loss that the S&P 500 took last year.
Imagine you buy a bond for $960 and you're told you'll get $1000 back in 12 months. That's an interest rate of ~4.2%. Now let's say that you decide you need the money after 3 months. If you sell the bond for $960, then the other guy would be getting that same $1000, but in only 9 months. That's an interest rate of ~5.6%. If the going rate is still 4.2%, then he will pay you about $970.
On a short duration treasury, it takes an enormous interest rate move or a very short holding period for it to be possible to lose money. Note that this last year saw short term treasury yields increase from <1% to 4.7%, so such a thing could be possible, but losing 1% if you sold bonds early in the worst year for bonds in decades would be far preferable than the ~20% loss that the S&P 500 took last year.
https://youtu.be/GG86mhOGjB8
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Schwab has a better MM yield than Fidelity(less than 4%). Personally I find Schwab better than Fidelity, especially no fee mutual funds.