Ally Bank has a new 8-Month Select CD
5.25% Annual Percentage Yield (APY)
No minimum deposit to open or earn APY.
Guaranteed return at a boosted, fixed rate for the term of the CD.
Early withdrawal penalty will apply.
Limited time offer ends 3/20/2024.
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Ally Bank has a new 8-Month Select CD
5.25% Annual Percentage Yield (APY)
No minimum deposit to open or earn APY.
Guaranteed return at a boosted, fixed rate for the term of the CD.
Early withdrawal penalty will apply.
Limited time offer ends 3/20/2024.
looking at Fidelity brokerage CDs I see Goldman Sachs 9 months @ 5.5% and Bank of America 9 months 5.40%
these rates are non-callable
I also see one year in 18 months at 5.5% non-callable
Longer term of guaranteed rates? Live in a state with no income tax which nullifies that benefit?
6 months treasury yield is 5.56%, 1 year treasury yield is 5.5%. Both are better than this CD, unless you absolutely need to invest for 8 months. On top of that, treasuries are more liquid and there is no penalty if you sell them early, other than the small drop in value you may have if the rates rise.
6 months treasury yield is 5.56%, 1 year treasury yield is 5.5%. Both are better than this CD, unless you absolutely need to invest for 8 months. On top of that, treasuries are more liquid and there is no penalty if you sell them early, other than the small drop in value you may have if the rates rise.
I'm referring more to the abundance of 18-24 month cds offering 5.5% also.
I'm not against treasury stuff, just giving an argument as to why cds may be a better option for some. There is a segment of the population that will take guaranteed rates for a longer period with no cares about liquidity.
Longer term of guaranteed rates? Live in a state with no income tax which nullifies that benefit?
Both treasuries and CDs are subject to federal income tax, but treasuries are not subject to state income tax.
So no matter where you live if the treasury has higher yield it also has higher post-tax yield. If you live in a high tax state treasuries may have higher post-tax yield even if their pre-tax yield is lower.
Both treasuries and CDs are subject to federal income tax, but treasuries are not subject to state income tax.
So no matter where you live if the treasury has higher yield it also has higher post-tax yield. If you live in a high tax state treasuries may have higher post-tax yield even if their pre-tax yield is lower.
Absolutely correct, but I'm referring more to the CDs available now that are better than treasury yields, for longer terms.
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these rates are non-callable
I also see one year in 18 months at 5.5% non-callable
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I'm not against treasury stuff, just giving an argument as to why cds may be a better option for some. There is a segment of the population that will take guaranteed rates for a longer period with no cares about liquidity.
So no matter where you live if the treasury has higher yield it also has higher post-tax yield. If you live in a high tax state treasuries may have higher post-tax yield even if their pre-tax yield is lower.
So no matter where you live if the treasury has higher yield it also has higher post-tax yield. If you live in a high tax state treasuries may have higher post-tax yield even if their pre-tax yield is lower.