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New issue CDs 1y 5.45% - offered by various issuers on Fidelity website
https://fixedincome.fid
New issue CDs by top rates:
CDs
3mo 5.30
6mo 5.30
9mo 5.35
1yr 5.45
1. To explore and buy CD's on Fidelity website you need an account.
2. The rates above are for callable CD's, non-callable CD's offer slightly lower rates, for example, for 1y CD callable APY 5.45%, non-callable 5.3%.
3. Nice feature of a Fidelity account is that if you cannot decide which CD to choose you can in short term keep your money in Money Market account SPAXX that currently pays respectable 4.75%.
https://digital.fidelit
RATES AS OF 9:07 PM EDT 06/26/2023
New issue CDs by top rates:
CDs
3mo 5.30
6mo 5.30
9mo 5.35
1yr 5.45
1. To explore and buy CD's on Fidelity website you need an account.
2. The rates above are for callable CD's, non-callable CD's offer slightly lower rates, for example, for 1y CD callable APY 5.45%, non-callable 5.3%.
3. Nice feature of a Fidelity account is that if you cannot decide which CD to choose you can in short term keep your money in Money Market account SPAXX that currently pays respectable 4.75%.
https://digital.fidelit
RATES AS OF 9:07 PM EDT 06/26/2023
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3mo 5.25
6mo 5.21
9mo 5.43
12mo 5.55
18mo 5.40
You might read one page introduction to Fidelity brokered CD's here:
https://www.fidelity.co
"New issue offerings are sold at par, which is $1,000 for most CDs and investors do NOT pay a trading fee to purchase them"
"A brokered CD ... repay your principal with interest if they're held to maturity . More important, both are FDIC-insured"
That is why brokered CDs, IMHO, have advantage over single issuer like your local bank or community credit union. At Fidelity an investor has a comprehensive comparison of CD's from dozens of issuers and can select whatever fits his/her investing needs the best regarding APY, term, attributes and risk.
From Fidelity website:
"Investors typically will see 50–100 new issue offerings and as many as 2,000 secondary offerings at any point in time."
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Stick with "New Issue" T-bills and they are very easy to understand and buy on the brokerage websites for no fees. I just bought 3 this week.
Stick with "New Issue" T-bills and they are very easy to understand and buy on the brokerage websites for no fees. I just bought 3 this week.
I'm looking at 17 week, 26 week and 52 week Treasury Bills. They have gr8 rates. You can do the auction where you are blind to what the rate will be, but know that it will be great- for now anyway. Or buy on the secondary market where you can see the rate.
Bills are better because if you need to get out of the investment there are more people buying on the secondary market = you will lose less money. Also, Fidelity doesn't charge a fee for you to sell them (no fee to buy secondary either). (No fees to buy new issues of either TBill or CDs).
Also, no state income tax on bills.
Also. You can choose to pay the fed taxes when the bond pays out, so, you can defer the income to later years if you've already hit a higher bracket this year. (Gr8 problem to have, I know!)
Also, CDs with high rates are from banks leaning towards desperate.... they might go under.... FDIC has your back, but still, that would be stressful!
I find it frustrating that all the great CD rates are callable. Now that I've thought through the above, I'm going with TBills.
I hear Schwab has a slightly more robust marketplace than Fidelity... haven't seen for myself yet. (means better chance of selling secondary if you need to. maybe better secondary rates??)
3mo 5.30
6mo 5.30
9mo 5.35
1yr 5.45
18mo 5.35
2yr 5.35
3yr 5.35
4yr 5.25
5yr 5.25
10yr 5.30
20yr 5.00
5 over 20 years sounds awesome but then again, who knows where we will be in 20.
Bills are better because if you need to get out of the investment there are more people buying on the secondary market = you will lose less money. Also, Fidelity doesn't charge a fee for you to sell them (no fee to buy secondary either). (No fees to buy new issues of either TBill or CDs).
Also, no state income tax on bills.
Also. You can choose to pay the fed taxes when the bond pays out, so, you can defer the income to later years if you've already hit a higher bracket this year. (Gr8 problem to have, I know!)
Also, CDs with high rates are from banks leaning towards desperate.... they might go under.... FDIC has your back, but still, that would be stressful!
I find it frustrating that all the great CD rates are callable. Now that I've thought through the above, I'm going with TBills.
I hear Schwab has a slightly more robust marketplace than Fidelity... haven't seen for myself yet. (means better chance of selling secondary if you need to. maybe better secondary rates??)
Call protection: No
Continuously callable: No
this is good, no? it also has FDIC attribute ==> it's insured
Callable CD gives the bank option to terminate your CD at any time before the maturity date.
Call protection: No
Continuously callable: No
this is good, no? it also has FDIC attribute ==> it's insured
The CD APY rates are still going up.
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