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expired Posted by hii.appa • May 6, 2023
expired Posted by hii.appa • May 6, 2023

9month CD @ 5.5% APY w/ $500 min deposit at Northern Bank Direct

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I know there NASA credit union is offering the same thing but difference is that this needs $500 min deposit vs $10k for NASA.

https://northernbankdirect.com/cds
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I know there NASA credit union is offering the same thing but difference is that this needs $500 min deposit vs $10k for NASA.

https://northernbankdirect.com/cds

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May 7, 2023
613 Posts
Joined Oct 2011
May 7, 2023
maingey
May 7, 2023
613 Posts
I don't understand. Why is 9 Month so high, and beyond so low? Wouldn't it be more incentive to give higher yields the longer you commit?
2
May 7, 2023
5,691 Posts
Joined Nov 2011
May 7, 2023
SamsungS21
May 7, 2023
5,691 Posts
Quote from ratbastard :
I think he's referring to Treasury bill laddering. It's an investment strategy that involves buying t-bills with various maturity dates and interest rates. You can buy directly through the Treasury Department is through a brokerage firm like Charles Schwab (you'll pay a fee but have better liquidity of your funds).
Is that tax free
1
May 7, 2023
508 Posts
Joined Nov 2011
May 7, 2023
ratero90
May 7, 2023
508 Posts

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Quote from mikej :
Maybe the reason why these banks are failing is because there are freaking hundreds of them. Seems like every Joe can set one up.

And now they are close to shutting down, but offer these CD's that their business could never support, essentially taking in money to pay out others. Eventually they shut down and the insurance pays for it. Then the insurance gets over extended, and well the govt will step in.

So essentially we will all end up paying for these mom and pop shops doing business that is not viable.
Take a few classes, read a few books, watch a few educational videos, you clearly don't understand US banking.
1
1
1
May 7, 2023
3,941 Posts
Joined Nov 2006
May 7, 2023
zhelder
May 7, 2023
3,941 Posts
Quote from maingey :
I don't understand. Why is 9 Month so high, and beyond so low? Wouldn't it be more incentive to give higher yields the longer you commit?
Kind of baffling to me too. Thinking about this, but the weird rate chart is giving me pause.
1
May 7, 2023
1,274 Posts
Joined Jul 2015
May 7, 2023
007_bond
May 7, 2023
1,274 Posts
Quote from ECartman :
No fee for trading T-Bills at Schwab or Fidelity. Easy Peasy. And big advantage for those in high state tax states is there is no state tax on T-Bills.

Currently 17 week T-bills are near 5.25%.
Is there a specific ticker for t-bills that you need to search in schwab or fidelity.
1
May 7, 2023
861 Posts
Joined Aug 2009
May 7, 2023
copyright1997
May 7, 2023
861 Posts

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Quote from 007_bond :
Is there a specific ticker for t-bills that you need to search in schwab or fidelity.
Each instrument will have its own CUSIP. You can buy at auction, 4 week and 8 week are auctioned on Thursday (Schwab and Fido require your order to be in before 9:30 AM), 17-week on Wednesday, 3 and 6 months on Mondays.

See here for upcoming auctions: https://www.treasurydirect.gov/au.../upcoming/

and here for a longer schedule: https://home.treasury.gov/system/...hedule.pdf

To purchase on Fidelity: https://fixedincome.fidelity.com/ftgw/fi/FICorpNotesDisplay?name=TREASA&refpr=obrfind5&requestpage=F... [fidelity.com]

To purchase on Schwab: https://client.schwab.com/Areas/T...ryAuctions

Note that T-Bills are sold at a discount, your interest is the difference between the maturity price and the purchase (discounted price). For example, last weeks 13-week (3 month) bill: https://www.treasurydirect.gov/in...0501_2.pdf. If you review the PDF, you will see it sold (for non-competitive bids which is what you would do) at 98.705778 per $100 and the Investment Rate 5.274% is assuming it is reinvested at the same return (i.e. compounded like you would see in a CD APY calc).

Hope this helps.
3
May 7, 2023
613 Posts
Joined Oct 2011
May 7, 2023
maingey
May 7, 2023
613 Posts
I'm genuinely curious about this, as I would like to open an account, possibly more than one for kids. I also see deposit min of 500$, but I thought earlier it was 10$. And I'm assuming the annual means once at the end of the term. I have to reread everything again because I need to find out what happens after 9 months, what kind of taxation, etc.
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May 7, 2023
613 Posts
Joined Oct 2011
May 7, 2023
maingey
May 7, 2023
613 Posts
Quote from zhelder :
Kind of baffling to me too. Thinking about this, but the weird rate chart is giving me pause.
Quote from copyright1997 :
Each instrument will have its own CUSIP. You can buy at auction, 4 week and 8 week are auctioned on Thursday (Schwab and Fido require your order to be in before 9:30 AM), 17-week on Wednesday, 3 and 6 months on Mondays.

See here for upcoming auctions: https://www.treasurydirect.gov/au.../upcoming/

and here for a longer schedule: https://home.treasury.gov/system/...hedule.pdf

To purchase on Fidelity: https://fixedincome.fidelity.com/ftgw/fi/FICorpNotesDisplay?name=TREASA&refpr=obrfind5&requestpage=F... [fidelity.com]

To purchase on Schwab: https://client.schwab.com/Areas/T...ryAuctions

Note that T-Bills are sold at a discount, your interest is the difference between the maturity price and the purchase (discounted price). For example, last weeks 13-week (3 month) bill: https://www.treasurydirect.gov/in...0501_2.pdf. If you review the PDF, you will see it sold (for non-competitive bids which is what you would do) at 98.705778 per $100 and the Investment Rate 5.274% is assuming it is reinvested at the same return (i.e. compounded like you would see in a CD APY calc).

Hope this helps.
lot of info but super confusing. Will need to read it slowly again. Thank you for this.
1
May 7, 2023
1,274 Posts
Joined Jul 2015
May 7, 2023
007_bond
May 7, 2023
1,274 Posts
Quote from copyright1997 :
Each instrument will have its own CUSIP. You can buy at auction, 4 week and 8 week are auctioned on Thursday (Schwab and Fido require your order to be in before 9:30 AM), 17-week on Wednesday, 3 and 6 months on Mondays.

See here for upcoming auctions: https://www.treasurydirect.gov/au.../upcoming/

and here for a longer schedule: https://home.treasury.gov/system/...hedule.pdf

To purchase on Fidelity: https://fixedincome.fidelity.com/ftgw/fi/FICorpNotesDisplay?name=TREASA&refpr=obrfind5&requestpage=F... [fidelity.com]

To purchase on Schwab: https://client.schwab.com/Areas/T...ryAuctions

Note that T-Bills are sold at a discount, your interest is the difference between the maturity price and the purchase (discounted price). For example, last weeks 13-week (3 month) bill: https://www.treasurydirect.gov/in...0501_2.pdf. If you review the PDF, you will see it sold (for non-competitive bids which is what you would do) at 98.705778 per $100 and the Investment Rate 5.274% is assuming it is reinvested at the same return (i.e. compounded like you would see in a CD APY calc).

Hope this helps.
Thank you! This is very helpful.
1
May 7, 2023
96 Posts
Joined Jan 2014
May 7, 2023
nopey
May 7, 2023
96 Posts
Quote from maingey :
I don't understand. Why is 9 Month so high, and beyond so low? Wouldn't it be more incentive to give higher yields the longer you commit?
Normally that would be correct, but this is what they call an inverted yield curve. I think that means that they think the Federal Reserve is almost done raising rates and will cut by next year, so the banks are the ones that won't commit to the higher rates for the longer terms.
May 7, 2023
1,831 Posts
Joined Sep 2007
May 7, 2023
ECartman
May 7, 2023
1,831 Posts
Quote from 007_bond :
Is there a specific ticker for t-bills that you need to search in schwab or fidelity.
I buy new issues. In Fidelity go to News & Research, then Fixed Income, Bonds, & CDS and then the New Issues tab.

In Schwab, go to Research then Bonds, CDs & Fixed Income.

You can find Treasuries in those places.
1
May 7, 2023
54 Posts
Joined Nov 2013
May 7, 2023
Kodaraw
May 7, 2023
54 Posts
Quote from maingey :
I don't understand. Why is 9 Month so high, and beyond so low? Wouldn't it be more incentive to give higher yields the longer you commit?
Expecting rates to go down in the future. If you're locked into a CD for 5 years at 5.5% and rate go down to 2% for 3 of those years, bank is our 3.5% on all the CDs.

Rates rose quick and are unstable rn.
1
May 7, 2023
240 Posts
Joined Nov 2006
May 7, 2023
rick_312
May 7, 2023
240 Posts
Quote from Eagles89 :
Why lock up your money when you might need it this year?
lol, i think we know if we need out money or not.
May 7, 2023
382 Posts
Joined Feb 2021
May 7, 2023
LeasedJet
May 7, 2023
382 Posts
Quote from mikej :
Maybe the reason why these banks are failing is because there are freaking hundreds of them. Seems like every Joe can set one up.

And now they are close to shutting down, but offer these CD's that their business could never support, essentially taking in money to pay out others. Eventually they shut down and the insurance pays for it. Then the insurance gets over extended, and well the govt will step in.

So essentially we will all end up paying for these mom and pop shops doing business that is not viable.
Maybe you should withhold commentary, your comments make it clear you have absolutely no clue what you're talking about.

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May 7, 2023
5,963 Posts
Joined Jan 2008
May 7, 2023
Eagles89
May 7, 2023
5,963 Posts
Quote from rick_312 :
lol, i think we know if we need out money or not.
If that were true, nothing bad would ever happen
2

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