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I'd rather get a 3 year multi year guaranteed annuity from athene or Lincoln Financial or some insurer that's backed by a massive financial institution which won't collapse and collect 5.5% principal protected coupon which is basically a certificate of deposit from an insurer versus a CD from one of these fly by day no name banks after what's happened during the past week
You might want to check out Lincoln Financial's current state of its shaky finances & downgrades
this is the most ridiculous thing. You do remember 2008 right? WaMu, Lehman, etc? What about Signature Bank and now CS?
All banks nowadays have ESG components and diversity officers and all that good stuff. Goldman, JPM, all of them. If it wasnt good for business they wouldnt do it.
There's a huge difference between a bank offering things like ESG options to customers that are seeking such & a bank whose entire focus is in that arena.
There's a huge difference between a bank offering things like ESG options to customers that are seeking such & a bank whose entire focus is in that arena.
Not when its FDIC insured. Unless you're dropping $250k+ in there.
Given that it looks like the Fed is going to raise interest rates by at least 3/4 of a percent at least twice again this year, I have to consider 5% or even 6% long-term (= anything over 6 months) as a sucker bet.
T-bills can be purchased from most banks with an investment department for a minimal commission (0.1% at my bank) or directly from the government without commission. I find it worthwhile to go through a bank because they do all the rate lookup and the paperwork for me, with consolidated statements at the end of the year.
T-bills are exempt from Federal income tax. In a higher tax bracket this can raise the return by a quarter of a percent or more.
The investment length is anywhere between four weeks and 52 weeks in (about) monthly increments.
The short term T-bill rates are now actually higher than the long term rates. And despite my personal opinion of government by deficit, they are one of the safest securities available.
Anyway, that's where I'm keeping my money - in T-bills. And it's not just for the rich -- the minimum investment through Treasury Direct is $100 with increments of $100.
is that fdic insured though? I thought brokered cd's were not insured. Which may be fine but that may be the reason for the premium.
All brokered CDs purchased through your brokerage firm Fidelity, eTrade, etc. will have FDIC coverage. When you log into your online brokerage and go to buy a CD you will see that they all carry FDIC coverage.
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Can u pls share link. I couldn't find similar rate.
you have to be o fidelity customer to see it . login and then go to fixed rate offerings. the primary CDs just mean you are buying from bank instead of marketplace (secondary)
Can u pls share link. I couldn't find similar rate.
brokered CDs only pay the interest at the end of the term and are not compounded daily and paid monthly. Does that higher rate is not equal to the same return as a bank cd rate at 5.45%
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All banks nowadays have ESG components and diversity officers and all that good stuff. Goldman, JPM, all of them. If it wasnt good for business they wouldnt do it.
I read the investor doesn't get the interest for primary CDs, instead it goes to the bank/brokerage.
https://www.treasurydir
T-bills can be purchased from most banks with an investment department for a minimal commission (0.1% at my bank) or directly from the government without commission. I find it worthwhile to go through a bank because they do all the rate lookup and the paperwork for me, with consolidated statements at the end of the year.
T-bills are exempt from Federal income tax. In a higher tax bracket this can raise the return by a quarter of a percent or more.
The investment length is anywhere between four weeks and 52 weeks in (about) monthly increments.
The short term T-bill rates are now actually higher than the long term rates. And despite my personal opinion of government by deficit, they are one of the safest securities available.
Anyway, that's where I'm keeping my money - in T-bills. And it's not just for the rich -- the minimum investment through Treasury Direct is $100 with increments of $100.
https://www.treasurydir
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T-bills are exempt from Federal income tax. In a higher tax bracket this can raise the return by a quarter of a percent or more.
Munis are Fed tax exempt but that's clearly reflected in their rates, not to mention the risks.
I can't find anything negative about this bank.
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