QA note: Eligibility Requirements - Live, work or worship in either San Diego, Riverside or San Bernardino counties. Or be an immediate family member of a current Frontwave Credit Union member.
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QA note: Eligibility Requirements - Live, work or worship in either San Diego, Riverside or San Bernardino counties. Or be an immediate family member of a current Frontwave Credit Union member.
Where are the terms and conditions of this CD account? I can't seem to find any. I guess I will be able to see it if I go through the sign up process, but I'd like to see it before I give my personal info. I'd like to know the penalty if you need to withdraw money before the 18 months are up.
Also of note, this is a Credit Union, not a bank, so they are not FDIC insured, they are however NCUA Insured (National Credit Union Administration) which is supposed to be similar and also offers up to $250,000 insurance
Last edited by NeatTank3537 February 6, 2023 at 06:16 AM.
Buy 6 month treasuries. They're almost yielding 5%. For a high earner in California, the avoidance of state tax almost makes treasuries competitive with this 6% CD (irrelevant for Roth).
Treasury bond is a bit confusing.
I purchased 2 I-Bonds, one with an issue date of Oct 01, 2021 showing 9.62% yield, another one with issue date of Jan 01, 2022 with 6.48%.
But the current value on the one that was purchased earlier with high yield is showing less value than the one with low yield.
Treasury bond is a bit confusing.
I purchased 2 I-Bonds, one with an issue date of Oct 01, 2021 showing 9.62% yield, another one with issue date of Jan 01, 2022 with 6.48%.
But the current value on the one that was purchased earlier with high yield is showing less value than the one with low yield.
I-Bonds are technically from the Treasury, but when people talk about Treasury bonds, they're really referring to something else.
I-bonds have a whole bunch of rules and limits, governing when and how much you can buy and sell. Treasuries have no such rules. Generally, treasuries are a better investment than Series-I or Series-EE bonds. There was a brief time last year when Series-I bonds became very attractive for the general population and I'm guessing you're not the only one not quite sure what you bought. Here's a link I found with a quick Google search:
I-Bonds are technically from the Treasury, but when people talk about Treasury bonds, they're really referring to something else.
I-bonds have a whole bunch of rules and limits, governing when and how much you can buy and sell. Treasuries have no such rules. Generally, treasuries are a better investment than Series-I or Series-EE bonds. There was a brief time last year when Series-I bonds became very attractive for the general population and I'm guessing you're not the only one not quite sure what you bought. Here's a link I found with a quick Google search:
Whatever it says on that website doesn't seem to add up:
"Interest you earn is added to the value of the bond twice per year. This means the principal amount you earn interest on increases every six months, positioning your money to compound over time."
They never respond to emails, and it's nearly impossible to reach out to them over the phone. Overall, I would rather go with regular High Yield Savings or CDs, much easier, better and flexible.
Whatever it says on that website doesn't seem to add up:
"Interest you earn is added to the value of the bond twice per year. This means the principal amount you earn interest on increases every six months, positioning your money to compound over time."
They never respond to emails, and it's nearly impossible to reach out to them over the phone. Overall, I would rather go with regular High Yield Savings or CDs, much easier, better and flexible.
This makes perfect sense. The interest you earn is reinvested and becomes additional principal. So when the next interest payment is made, it's made on a larger principal amount. They specify this in the article because this is somewhat unusual for a bond.
You're probably right to stick with HYS and CDs. You'll earn a better return with treasuries, but it's never a good idea to invest in securities that you don't understand. Don't worry, you're not going to be missing out on too much.
Treasury bond is a bit confusing.
I purchased 2 I-Bonds, one with an issue date of Oct 01, 2021 showing 9.62% yield, another one with issue date of Jan 01, 2022 with 6.48%.
But the current value on the one that was purchased earlier with high yield is showing less value than the one with low yield.
I bonds have two rates. Fixed and variable. The newer bonds have a fixed rate that will continue for the life of the bond. I think it's .4%. The older bonds have a 0 fixed rate so the older bonds total interest rate will be lower than it you bought them before the last change in November.
Capital One is offering their 11-month "360" CD at 5% until March 14th. That's a pretty good deal that won't tie your money up for more than a year (or in this case 11 month if you so choose) and it's not limited to where you live in a specific area.
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Also of note, this is a Credit Union, not a bank, so they are not FDIC insured, they are however NCUA Insured (National Credit Union Administration) which is supposed to be similar and also offers up to $250,000 insurance
I purchased 2 I-Bonds, one with an issue date of Oct 01, 2021 showing 9.62% yield, another one with issue date of Jan 01, 2022 with 6.48%.
But the current value on the one that was purchased earlier with high yield is showing less value than the one with low yield.
I posted a thread on SD here, I'm waiting for inputs.
https://slickdeals.net/f/16432363-treasury-i-bond-yield-discrepancy?p=161554465&newthread=success#po...
Sign up for a Slickdeals account to remove this ad.
I purchased 2 I-Bonds, one with an issue date of Oct 01, 2021 showing 9.62% yield, another one with issue date of Jan 01, 2022 with 6.48%.
But the current value on the one that was purchased earlier with high yield is showing less value than the one with low yield.
I posted a thread on SD here, I'm waiting for inputs.
https://slickdeals.net/f/16432363-treasury-i-bond-yield-discrepancy?p=161554465&newthread=success#po...
I-bonds have a whole bunch of rules and limits, governing when and how much you can buy and sell. Treasuries have no such rules. Generally, treasuries are a better investment than Series-I or Series-EE bonds. There was a brief time last year when Series-I bonds became very attractive for the general population and I'm guessing you're not the only one not quite sure what you bought. Here's a link I found with a quick Google search:
Forbes - Basics of I-Bonds [forbes.com]
I-bonds have a whole bunch of rules and limits, governing when and how much you can buy and sell. Treasuries have no such rules. Generally, treasuries are a better investment than Series-I or Series-EE bonds. There was a brief time last year when Series-I bonds became very attractive for the general population and I'm guessing you're not the only one not quite sure what you bought. Here's a link I found with a quick Google search:
Forbes - Basics of I-Bonds [forbes.com]
"Interest you earn is added to the value of the bond twice per year. This means the principal amount you earn interest on increases every six months, positioning your money to compound over time."
They never respond to emails, and it's nearly impossible to reach out to them over the phone. Overall, I would rather go with regular High Yield Savings or CDs, much easier, better and flexible.
"Interest you earn is added to the value of the bond twice per year. This means the principal amount you earn interest on increases every six months, positioning your money to compound over time."
They never respond to emails, and it's nearly impossible to reach out to them over the phone. Overall, I would rather go with regular High Yield Savings or CDs, much easier, better and flexible.
You're probably right to stick with HYS and CDs. You'll earn a better return with treasuries, but it's never a good idea to invest in securities that you don't understand. Don't worry, you're not going to be missing out on too much.
I purchased 2 I-Bonds, one with an issue date of Oct 01, 2021 showing 9.62% yield, another one with issue date of Jan 01, 2022 with 6.48%.
But the current value on the one that was purchased earlier with high yield is showing less value than the one with low yield.
I posted a thread on SD here, I'm waiting for inputs.
https://slickdeals.net/f/16432363-treasury-i-bond-yield-discrepancy?p=161554465&newthread=success#po...
Sign up for a Slickdeals account to remove this ad.
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