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forum thread Posted by Ejsdad12 • Sep 5, 2023
forum thread Posted by Ejsdad12 • Sep 5, 2023

High Yield Certificate of Deposit CD 5.8% 15 months Finworth Bank - $50000

$50,000

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Finworth is offering great rates if you have $50k to put into a CD. It's FDIC insured under INSBANK #35521.

https://www.finworth.com/certificate-of-deposit/
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Finworth is offering great rates if you have $50k to put into a CD. It's FDIC insured under INSBANK #35521.

https://www.finworth.com/certificate-of-deposit/

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103 Comments

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Sep 5, 2023
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Sep 5, 2023
briank642
Sep 5, 2023
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Treasury Bills are a better option. Lower investment requirement and significantly better liquidity.
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Sep 5, 2023
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Sep 5, 2023
runner0382
Sep 5, 2023
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Quote from briank642 :
Treasury Bills are a better option. Lower investment requirement and significantly better liquidity.
And no state taxes. They aren't necessarily better because the rate can dip. The whole point of CDs is to lock a rate and some consumers prefer that.
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Sep 5, 2023
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Sep 5, 2023
C17chief
Sep 5, 2023
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Quote from runner0382 :
And no state taxes. They aren't necessarily better because the rate can dip. The whole point of CDs is to lock a rate and some consumers prefer that.
On some types of bonds yes, but with treasury bills you're locking in your gains at the time of purchase. Held to maturity, the face value is face value, there's no changing rates or any of that.

That said, no treasury bill is paying quite that high. They are within a few tenths though. If $50k is max on that CD, the difference might not be worth the effort of going thru the hassle of opening a new account at another institution for a lot of people.
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Sep 5, 2023
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runner0382
Sep 5, 2023
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Quote from C17chief :
On some types of bonds yes, but with treasury bills you're locking in your gains at the time of purchase. Held to maturity, the face value is face value, there's no changing rates or any of that.

That said, no treasury bill is paying quite that high. They are within a few tenths though. If $50k is max on that CD, the difference might not be worth the effort of going thru the hassle of opening a new account at another institution for a lot of people.
Thanks
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Sep 6, 2023
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Ejsdad12
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Sep 6, 2023
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Quote from C17chief :
On some types of bonds yes, but with treasury bills you're locking in your gains at the time of purchase. Held to maturity, the face value is face value, there's no changing rates or any of that.

That said, no treasury bill is paying quite that high. They are within a few tenths though. If $50k is max on that CD, the difference might not be worth the effort of going thru the hassle of opening a new account at another institution for a lot of people.
The max you can invest with this CD is $240k. But you need $50k to open the CD. Keep in mind this CD only compounds annually. Instead, they have an option to take the income monthly instead. Depending on how much you put in, this monthly income can be pretty great.

I haven't seen any other CDs at this interest rate since Sallie Mae dropped their rates on September 1st. Hope someone can benefit!
Sep 6, 2023
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briank642
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Quote from runner0382 :
And no state taxes. They aren't necessarily better because the rate can dip. The whole point of CDs is to lock a rate and some consumers prefer that.
You can do what's called a ladder and buy T-Bills at different maturities: 1 month, 3 month, 6 month, etc. By doing this you lock in your interest rates (held to maturity), and also give yourself the benefit of liquidity. Roll them back over and continue the ladder, or put the money into equities (VOO). Everyone should have a brokerage account ready and waiting, even if you only have $100 in it.
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Sep 6, 2023
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runner0382
Sep 6, 2023
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Quote from briank642 :
You can do what's called a ladder and buy T-Bills at different maturities: 1 month, 3 month, 6 month, etc. By doing this you lock in your interest rates (held to maturity), and also give yourself the benefit of liquidity. Roll them back over and continue the ladder, or put the money into equities (VOO). Everyone should have a brokerage account ready and waiting, even if you only have $100 in it.
I'm going USFR ETF for simplicity
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Sep 6, 2023
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briank642
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Quote from runner0382 :
I'm going USFR ETF for simplicity
Buying actual T-Bills is VERY VERY easy through any brokerage. You won't pay any fund expenses. I'm also not sure if you save on state/local taxes if using an ETF.
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Sep 6, 2023
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Sep 6, 2023
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Rainchecker
Sep 6, 2023
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With those brokerage accounts do you have to figure fed tax on each bond or is it an interest statement at the end of the year? Tracking them all would not be worth the hassle for me.
Sep 7, 2023
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Catfish500
Sep 7, 2023
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Quote from C17chief :
On some types of bonds yes, but with treasury bills you're locking in your gains at the time of purchase. Held to maturity, the face value is face value, there's no changing rates or any of that.

That said, no treasury bill is paying quite that high. They are within a few tenths though. If $50k is max on that CD, the difference might not be worth the effort of going thru the hassle of opening a new account at another institution for a lot of people.
50k is the minimum, not the max so it might be worth it for people that have a minimum of 50k.
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Sep 7, 2023
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Sep 9, 2023
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sd5000
Sep 9, 2023
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Some banks make it difficult to withdraw the funds on maturity, like only sending out a check to the address on record which could take up to a week in lost interest.
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