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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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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.com/cd-acc...y-cd-rates
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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If you think about a CD, it's an agreement where you loan the bank your money and they promise to pay you back with interest. A treasury bond is the same thing. Right now, the treasury bonds will give you a better return on your money. On top of that, because you're lending to the federal government, they're willing to let your income from this be exempt from state and local taxes (but not federal taxes, which will likely be higher anyway).
Unlike a CD, treasury bonds are liquid. If you have a 12 month treasury bond and decide that you want to buy something else after 6 months, then you can sell it on the secondary market. Unless something really crazy has happened with interest rates during those 6 months, you will have a profit for your time holding that bond. With a CD, the only way to get out of the deal is to forfeit all of the interest you would otherwise be entitled to.
CDs typically pay more than treasuries, but not right now. You should avoid short-duration CDs and get short-duration treasury bonds if you need a safe place to park cash.
With a standard CD yes. This is a no penalty CD. It's liquid.
(Amount Invested) X (Interest Rate) X (Time Invested / 1 Year)
$1000 X 0.042 X (8 weeks / 52 weeks) = $6.46