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New issue CDs 1y 5.45% - offered by various issuers on Fidelity website

+20 Deal Score
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https://fixedincome.fidelity.com/...-new-issue

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.fidelity.com/sear...e=o-NavBar

RATES AS OF 9:07 PM EDT 06/26/2023
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Joined Jun 2016
L2: Beginner
> bubble2 73 Posts
18 Reputation
Harvs
07-03-2023 at 06:34 PM.
07-03-2023 at 06:34 PM.
Okay real question. Why go over a CD when 3 month T Bills are yielding the same and you can "redeem" at any time by buying a ETF like BIL or TBIL?
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Joined Jun 2016
L5: Journeyman
> bubble2 790 Posts
156 Reputation
biskett
07-11-2023 at 10:01 AM.
07-11-2023 at 10:01 AM.
Quote from Revers3 :
Yes, this is good.
The CD APY rates are still going up. ​
what happens at the end of 1 year, do we have to sell or something? do we lose anything at that point?
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Joined May 2022
L3: Novice
> bubble2 139 Posts
219 Reputation
Original Poster
Revers3
07-11-2023 at 11:10 AM.
07-11-2023 at 11:10 AM.
Quote from biskett :
what happens at the end of 1 year, do we have to sell or something? do we lose anything at that point?
If you buy CD for 1 y term, at the end of 1 year, you will get your invested money back plus accrued interest. You don't have to do anything, the money will just show up in your account with explanation: what why and how much. You can keep track of this, on Fidelity website, under "Activity and Orders" tab.
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Joined May 2022
L3: Novice
> bubble2 139 Posts
219 Reputation
Original Poster
Revers3
07-11-2023 at 06:34 PM.
07-11-2023 at 06:34 PM.
Quote from GreySofa5158 :
Please stop buying tbills or CDs unless you need this money short term. Every single penny should be in stocks. Stop being a wimp and try to accumulate some real wealth which you'll never do by keeping your money "safe".

In the CNBC interview, Buffett advised savers to buy shares of the S&P 500, and keep doing it no matter what. That's the key not only to holding a strong retirement fund but also to having more cash on hand to pass down to your family, he said.

"Keep buying it through thick and thin," he said. "Especially through thin."

Buffett explained that it can be incredibly tempting to sell when the market sells and to buy when the market buys. But doing so means not getting the best deal for your dollar.

"When you see bad headlines in newspapers, we say, 'Well maybe I should skip a year.' Just keep buying it," he said.

If you're buying the S&P 500, you're buying the biggest and best companies in the country. So you just have to remain confident, like Buffett, that these companies will rise again.

"American business is going to do fine over time, so you know the investment universe is going to do very well."
Overall, lots of good advice. Investing in S&P (SPY, IVV) is very smart thing to do. Start early, think long term, buy and hold, dollar cost averaging. 401k, IRA are the best for that, cash brokerage account works well as well.

"Buffett advised savers to buy shares of the S&P 500,"
This is correct, more precisely, Buffet advice was to keep about 90% in S&P and rest in treasuries, bonds, CD's, cash. This was advice to his wife estate, so this is a conservative approach advisable for those retired or close to retirement. For younger folks, adding some growth, technology companies or ETF's, for example, QQQ or FTEC, might be a good strategy as well.

"Warren Buffet's will leave his wife money allocated conservatively: 90% in the Standard & Poor's 500 and 10% in short-term Treasuries, frozen at those levels"
https://www.berkshirehathaway.com...013ltr.pdf
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Joined Nov 2014
Shark jumper
> bubble2 975 Posts
1,107 Reputation
Platinumland
08-04-2023 at 09:21 AM.
08-04-2023 at 09:21 AM.
Question: Why do CDs when there are money markets doing about the same APR?
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Joined Feb 2018
L3: Novice
> bubble2 266 Posts
342 Reputation
RigbyR
08-10-2023 at 01:09 AM.
08-10-2023 at 01:09 AM.
Quote from Platinumland :
Question: Why do CDs when there are money markets doing about the same APR?
seems a money market may go down in a year or so, its a gamble. a cd guarantees you the rate for the full term of a year or whatever. so u can lock it in
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Joined May 2007
L10: Grand Master
> bubble2 11,686 Posts
1,459 Reputation
superslickz
08-10-2023 at 03:29 AM.
08-10-2023 at 03:29 AM.
I don't see an issue with the cd getting called because you still get your interest up to that date. IF the cd gets called, the market condition is probably better for putting money back into the stock market anyways.
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