Ally Hikes No Penalty CD To Rate-Leading Status Amid U.S. Banking Crisis
The bank run and subsequent closure of Silicon Valley Bank last week may have sparked fear at Ally Bank. On Saturday, Ally Bank did something very unusual. It did a weekend rate hike, increasing the rate of one of its savings products to a rate-leading level. With Ally being listed as one of ten banks “that may face trouble” in the press, I think this might have been one action done by Ally Bank to reduce outflows of deposits from skittish customers. The latest news on Sunday night may help calm fears of more bank runs. The government announced that all uninsured depositors at Silicon Valley Bank will be made whole. The Fed also announced “it will make available additional funding to eligible depository institutions to help assure banks have the ability to meet the needs of all their depositors.” (I’ll have more on this news later.) Due to these Sunday announcements, Ally Bank may not keep this latest deal for too long.
The unusual rate hike this weekend was the 75-bp rate increase of Ally’s 11-month No Penalty CD. The 11-month No Penalty CD now has a 4.75% APY. The media may not notice this rate as unusual since many online banks now offer 12-month standard CDs with a 5.00% APY. That may be one reason Ally chose the big rate hike on the No Penalty CD. Also, the No Penalty CD rate increase doesn’t automatically raise Ally’s deposit costs on existing accounts. When the savings or money market rates increase, existing account holders immediately get the benefit. Only Ally customers who open the No Penalty CDs will benefit (or who have recently opened a No Penalty CD.) This minimizes Ally’s deposit costs. The high-rate No Penalty CD may help keep more deposits at Ally, but Ally may not need to be so aggressive with deposit rates after the Sunday announcements from the Feds. As I mentioned above, this 4.75% APY on the No Penalty CD may not last long if the Fed’s actions on Sunday reduces deposit outflows.
Thanks to DA readers mnysvr and slowboat for posting on the No Penalty CD rate hike in the DA Forum.
On Friday, before the closure of Silicon Valley Bank, Ally Bank did a few smaller rate increases.
Both the Online Savings Account (OSA) and Money Market Account (MMA) had rate hikes, but the MMA rate had a larger increase, and it now exceeds the OSA rate by 20 bps. The OSA rate increased 20 bps to 3.60% APY, and the MMA rate increased 30 bps to 3.80% APY.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 4.40% | - | - | Ally Bank | Money Market Account | |
| 4.25% | - | - | Ally Bank | IRA Savings (Traditional, Roth, SEP) | |
| 4.25% | - | - | Ally Bank | Savings Account |
I’m disappointed that Ally has chosen to widen the rate gap between the OSA and the MMA. The only reason that I see for the MMA rate to be 20 bps higher than the OSA rate is that it might be saving Ally on deposit costs. Many more customer deposits are probably in the OSA than in the MMA. Many customers may not quickly move their money into a MMA, and that will save Ally money. Also, the MMA isn’t available inside of an Ally IRA. The OSA is the only liquid account available in the Ally IRA. The only reason I could see Ally justifying the higher rate on the MMA is due to the new savings features on the OSA such as the boosters and buckets. However, these should be less costly for Ally compared to the checks and debit card available on the MMA.
Ally Bank also increased rates on Friday on a few of its CDs.
| APY | MIN | MAX | INSTITUTION | PRODUCT | DETAILS |
|---|---|---|---|---|---|
| 5.00% | - | - | Ally Bank | 9 Month High Yield CD | |
| 4.85% | - | - | Ally Bank | 12 Month High Yield CD | |
| 3.75% | - | - | Ally Bank | 2 Year Raise Your Rate CD | |
| 3.75% | - | - | Ally Bank | 4 Year Raise Your Rate CD |
Ally Bank increased the rate of its 20-month Select CD by 65 bps to 5.00% APY, which now matches Ally’s 18-month High Yield CD rate. For those looking for long-term 5% CDs, this isn't long enough. Nevertheless, it's a step in the right direction.
Ally Bank increased its 12-month High Yield CD rate by 25 bps to 4.50% APY and its 9-month High Yield CD rate by 65 bps to 4.15% APY. With the 11-month No Penalty CD at 4.75% APY, this is the only time that I remember when Ally’s No Penalty CD rate was higher than its 12-month CD rate. It’s nice to see Ally’s 9-month CD rate being competitive. Ally has a long history of keeping the rates of its short-term CDs (under one year) uncompetitive. Of course, with the No Penalty CD rate at 4.75%. The only reason to choose this 9-month CD over the No Penalty CD is if you have an Ally IRA since Ally doesn’t offer the No Penalty CD in an IRA.
Lastly, Ally Bank increased the rate of its two Raise Your Rate (RYR) CDs by 45 bps to 3.75% APY. Both the 2-year and 4-year RYR CDs now have a 3.75% APY. It’s nice to see a big increase on these RYR CDs, but they’re still too low when compared to standard 2-year and 4-year CDs at other online banks. They’re low even when compared to Ally’s High Yield CDs. Ally’s 3-year and 5-year High Yield CD rates are now 4.25% APY, 50 bps above the RYR CD rate. By keeping the RYR CD rates low, Ally has been unfair to customers who had viewed these CDs as a way to keep pace with rising rates. It’s understandable that the RYR CD rates would be below the standard CD rates of comparable terms, but the RYR rates have been kept too far beneath the standard CD rates in my opinion.
Thanks to DA readers JVW, LanceTX and RichardW for their DA Forum posts on the Friday rate increases.
11-Month No Penalty CD
The No Penalty CD (4.75% APY) now has a 95-bp rate advantage over the Ally Money Market Account (3.80% APY) and 115-bp rate advantage over the Ally Online Savings Account (3.60% APY). This is the largest rate advantage over the savings and money market accounts that I can remember. This is an easy way for Ally Bank customers to get an extra 95 bps on their liquid savings. There are just a few minor downsides to consider. First, when you open the No Penalty CD, you can’t withdraw the funds for the first six days following the date you funded the CD. After that date, you can access the funds (principal and all accrued interest) without penalty. However, you can’t make a partial withdrawal. To access the principal, the CD must be closed. This can be done quickly and easily by using Ally’s online CD management system. If you close the CD and transfer the funds back to your Ally savings, the closure and transfer are immediate. The last downside to consider is the risk you might miss out on a higher online savings account rate in the future. It’s possible that the Ally savings and money market rates will rise above 4.75% in the next few months. If that does occur, you’ll want to close the No Penalty CD. It’ll also make sense to close the CD if Ally increases the rate of the No Penalty CD. In that case, you’ll want to close the CD, move the funds to the Ally savings, money market or checking account, and then open the new No Penalty CD with those funds.
High Yield and Select CDs
With a 5.00% APY, the 20-month Select CD and the 18-month High Yield CD are the only Ally CDs with rates higher than the 11-month No Penalty CD. If you think rates won’t stay high, longer-term CDs make sense. With a banking crisis that might not be over, there are definitely signs that suggest that rates may not stay high for too long. If you want to hedge your bets, longer-term CDs make sense. The 20-month Select CD isn’t that long, but at least you’ll keep earning 5% APY through most of 2024.
One thing nice about the 18-month and 20-month CDs is that the early withdrawal penalty is fairly mild for this maturity length, only 60 days of interest.
Ally Bank’s Early Withdrawal Penalty and Early Withdrawal Process
Ally rarely has the highest CD rates, but it has two significant advantages: 1) mild early withdrawal penalties, and 2) an easy and quick process to request an early closure and to receive the funds.
Ally has the following description of its early withdrawal penalties on its website for its CDs:
- 24 months or less: 60 days of interest
- 25 months – 36 months: 90 days of interest
- 37 months – 48 months: 120 days of interest
- 49 months or longer: 150 days of interest
One downside with Ally’s CDs is that they don’t allow partial early withdrawals. If you need some of your CD principal before maturity, your only option is to close the CD and withdraw the entire amount.
There was a long period of time when Ally disabled the capability to request online an early closure of a CD. It instructed the customer to call to request an early closure. I’m happy to report that the online CD closure capability is back at Ally and it’s still active. When you log in, go to the “Early Withdrawal” section of “Manage CDs”. At this page, you can see your CD’s current balance that includes accrued interest. It also displays the early withdrawal penalty and the “after penalty” balance. This allows you to confirm exactly how much interest you will lose before you request an early closure. To receive the funds, it offers two choices: 1) online transfer, or 2) check. If you choose “online transfer”, you can select the destination account. Any of your Ally liquid accounts are options. Also, any of your external linked accounts are options. If you choose an Ally account, it informs you that “funds should post to your account immediately.” If you choose an external linked account, it informs you that “funds should post to your account within 3 business days.” I can confirm that the funds from a closed Ally CD are immediately transferred and made available in your Ally liquid account that you selected.
Ally’s Ten Day Best Rate Guarantee
For those who opened the No Penalty CD in March before the 4.75% APY took effect, you should get the new 4.75% APY. This is due to Ally’s Ten Day Best Rate Guarantee. Here are the details as Ally describes in its FAQ:
When you fund your non-IRA CD within 10 days of your open date, you'll get the best rate we offer for your term and balance tier if our rate goes up within that time. The Ally Ten Day Best Rate Guarantee also applies at renewal.
There is no minimum deposit to open a CD or get the Ten Day Best Rate Guarantee, but you may get a higher rate with a higher opening deposit.
Other Ally Bank CD Features
Few online banks offer the features that Ally offers for online CD management. When you log into your account, you can change things like how interest is disbursed. Ally allows you to have the interest paid monthly, quarterly, semi-annually or annually. You can also change how interest is paid. You can choose for the interest to be credited back to the CD, paid out to your account or paid as a check. The software can also be used to change renewal options and to request an early withdrawal.
Loyalty Reward of an Extra 0.05%
Ally Bank continues to offer a 0.05% loyalty reward when you renew your CDs. There’s an easy way to use this loyalty reward to get an extra 5 bps on all of your Ally CDs.
Beneficiary Designations and Extending FDIC Insurance
Another nice aspect of all of Ally’s accounts is the ability to designate beneficiaries. You can choose up to ten beneficiaries for each of your non-IRA accounts, and you can choose the designation of either “In Trust For” or “Payable On Death”. Beneficiaries can be individuals or non-profits/charities. You can also specify how to distribute the funds (either equally among beneficiaries or by specific percentages.)
Beneficiary designations can be done online in account management software after the account has been opened. These features make it easy to maintain FDIC insurance on deposits in excess of $1 million. I described how this can be done in this blog post.
Ally now requires that you provide beneficiary identification. According to Ally, the FDIC added regulatory requirements for recordkeeping which required Ally to maintain “complete and accurate beneficiary information.” The beneficiary’s Social Security number or Tax ID isn’t the only option. Other options listed by Ally include, Alien Identification Card, Driver’s License, Valid Passport and Military ID.
Ally also allows customers to open an account in the name of a Trust.
Deciding to Break an Old Ally CD
If you have any old Ally High Yield CDs, it might be worth closing them and moving those funds to a new 11-month No Penalty CD or a new 20-month Select CD. With today’s “high” rates, it won’t take too many months before the interest from the new high-rate account offsets the loss of the early withdrawal penalty. The more time left on your existing CD, the more likely that you’ll benefit from breaking the CD.
To help with this decision, please refer to the DA When to Break a CD Calculator. Enter the APY, balance, early withdrawal penalty, and remaining months of your current CD. Then enter the APY of the new CD. The Calculator will tell you if you should or should not break your CD.
Another High-Rate Option at Ally
Even though the Feds have announced new support for banks to avoid bank runs, there will still be concern for those who have over the FDIC deposit coverage limits at any bank. Those who have that much cash might want to consider money market funds. They’re not FDIC insured, but they’re considered very conservative. Ally customers can easily take advantage of money market funds by having an Ally Invest account. As described in this MyMoneyBlog post, Ally customers with Ally Invest accounts can easily move their cash into money market funds to earn yields which are currently in the mid 4% range.
Availability and Account Opening
Ally Bank offers its services and product line to individuals 18 years or older, who have a valid Social Security number or Tax ID and a U.S. residential street address.
In the online application, Ally asks “have you placed a security freeze on your credit?” According to Ally:
If you have a freeze on your credit as a feature of credit security monitoring, you'll need to request a "federal lift" before you submit your application. Once your application is processed you can re-instate the freeze. If you are already an Ally Bank customer, you can complete the application, and we'll contact you to verify your identity.
We'll use your credit information to verify your identity, protect you from identity fraud and comply with federal regulations. Your credit score won't be affected.
Applying for an Ally account can be done using Ally Bank’s online application or by calling Ally (877-247-2559). You can fund your new account in a few different ways:
- Transfer from an Ally or non-Ally account
- Check (by mail or Ally eCheck Deposit)
- Wire transfer
To open one of the Select CDs, you’ll have to start at one of the Select CD promotional pages (either the 20-month page or the 13-month page.) This is for both existing customers and new customers.
Bank Overview
Ally Bank (FDIC Certificate # 57803) has an overall health grade of "B+" at DepositAccounts.com, with a Texas Ratio of 7.47% (excellent) based on June 30, 2022 data. In the past year, Ally has increased its non-brokered deposits by $1.13 billion, an above average annual growth rate of 0.84%. Please refer to our financial overview of Ally Bank for more details.
Ally Bank has a long history as an online-only bank. The name used to be GMAC Bank. The name change to Ally Bank was completed in late 2009. My first posts on GMAC Bank were in early 2006. Back then it only offered money market accounts and CDs. The Online Savings account was launched in 2008, and the Interest Checking account was launched in 2010.
How the Ally 11-Month No Penalty CD Compares
When compared to other no-penalty CDs tracked by DepositAccounts.com that are available nationally, have a term of at least 11 months and have minimum deposit requirements of $10k or less, no banks or credit unions have a higher rate than the rate offered on the Ally Bank 11-month No Penalty CD. The following table compares the Ally Bank 11-month No Penalty CD to the three highest-rate CDs from other banks and the highest-rate CD from a credit union.
The above information and rates are accurate as of 3/13/2023.
To look for the best CD rates, both nationwide and state specific, please refer to our Best CD Rates Table page. For the best no-penalty CD rates, please refer to our No Penalty CD Rates Table of the liquid account summary.
No response, no communication of any kind. It's completely unacceptable.
PS Fed futures predicting 52% chance of no rate increase at the March meeting. For the last month it has been predicting 0% chance of that. Stands as a reminder that such complex predictions are tenuous at best since a single shock to the economy can derail them instantly. Another data point supporting diversification over timing.
I'm also considering charging Ally an NSF fee.
But if futures have any predictive power at all they are indicating that the increase won't be more than one quarter point. And since the fixed income markets have already priced in a half-point increase as a sure thing, yields are dropping sharply.
Until now it seemed unlikely that financial stress was the reason that Ally did not pay the bonuses they owe their depositors. Now I think that would be a leading theory. To that extent, they are already in default and have broken their agreement with their depositors.
it's an under the radar default.
They can no longer be trusted with my money, I think they will stage another "server glitch" and they will claim that they do not have any record of that CD and either the interest or the principal will be confiscated or both.
I already closed all of my accounts with them and I do not think to open another account ever.
They are on the verge of collapsing, what is holding them up as bank is a "creative accounting scam". Do not let be fooled twice, it will be your fault this time.
I filed a formal case with them on February 15th and called them several times since. They had nothing to say except that they promised to update me twice and did not. It seems likely now that they made a conscious decision not to pay the remaining bonuses to conserve capital. In other words they defaulted on their agreement intentionally. That would explain why they don't want to tell you anything at all about it. Remains to be seen whether it will ever be paid. May take a lawsuit to recover it if it is recoverable at all.
whats the story ?
I am not panicking, but need immediate access to my funds and can’t wait days for the FDIC to payout.
Closed 3 last night opened 3
4.75% this morning.
No Foul-ups
https://www.depositaccounts.com/blog/2020/11/ally-banks-removal-early-withdrawals-online-cd-management.html
While it is possible to open or rollover NPCD online, the ability to close it prior to maturity was removed some time ago and Customers were promptly notified about the change of the functionality. it is such an insignificant issue where or not it was restored!
I have no standing NPCD with Ally.
Let's not ridicule ourselves over such worthless non-issue.
There are infinitely more important concerns competing for our time and keyboard availability.
I hope you'd agree.
Ally's CS is miles away from pre-pandemic.
And the dozen of eggs three times of used to be.
There the real kicker is to decide what is important "in time of the cholera".
Please do your own research, before you intend to muck the posters and then counter comment with opposite facts, if you think the post is not true. Thanks again for asking.
Kzzl Aid Kzzl Aid Can't Wait
Join His Party
I wonder why, if indeed, Ally would use such an unprofessional term.
Paper form says it differently; "If you have a freeze on your credit as a feature of credit security monitoring, we may contact you to lift the freeze temporarily to verify your identity."
ALSO, comes to ubiquitous lists of 10 or 20 Banks exposed to SVB.
ALL this lists come from single source without any peer review and reference to creditworthy data.
Initially published by MarketWatch and reposted by Reddit, but removed from Morningstar.
I have zero confidence that these lists are kosher. Could it be that we are here spreading the rumors and advancing malicious agenda?
I have received Ally bonuses in the past and recently without any issues.
As promised, $454 bonus was deposited to my account on February 8th
The weird amount represent the fact that I made no effort to maximize the bonus and received it in the course of conducting continuously typical banking business with Ally.
Ally is known for overcomplicating the rules of the promotions, but once rules are navigated properly Ally acts fair and honest.
Except when they don't pay.
sometime I prevail by arguing myself against wrong.
sometime I employed CFPD doing arguing on my behalf.
and sometime I failed and CFPB was no help because i was not diligent enough reading the small print and verifying my eligibility.
the bonus is an exercise of gamesmanship where the first rule of the game is know the rule of the game.
What is the issue here? There are so many deals... just move on to next one.
There is no way the Fi of any size and reputation would arbitrary renege on publicly announced contract.
your $500 bonus is a 20 minutes of paid time some SVP would have to spend dealing with it!!!!
Since then I've done maybe two or three more, but have been losing interest in it because I have more lucrative uses of my time and the hobby value wore off. Of all of the bonuses I've done Ally is the only one that did not pay.
Before they apparently told their reps to clam up, the first rep told me that he looked at everything and confirmed that I qualified. He also told me they were getting a lot of calls about it from other people who qualified but never got paid. It was clear to me from that first call that something was seriously wrong at Ally.
When I called today, two days short of 1 month later after I filed a case and got a case number from them and they said they were going to look into it, they didn't say they looked into it and I don't qualify, they said the case is still open and they haven't looked at it yet.
They may well be telling me the truth that they didn't look at it yet. Why would they bother looking at it if they don't intend to pay it either way? During that month I called twice and they promised both times they would get back to me to follow up. They never did. I would call that unfair and dishonest.
This isn’t a bad deal, even if it’s nowhere near the highest rates. We saw today a huge stall in Treasury bill increases: the 26 week term which auctioned last week at 5.183% dropped to 4.895% today. That’s a huge red flag to me. And it makes Ally’s offer intriguing, at least for the time being.
https://www.ally.com/go/bank/20m-select-cd/
If it's the former, I would be concerned because there is clear evidence that they may be in financial trouble.
If it's the latter, you own bonds in an Ally brokerage account, but they are not Ally corporate bonds, you are likely covered by SIPC which won't protect you against market losses but will protect you in the event that Ally fails, as long as you meet the insurance requirements. You should not lose any of those bonds even if Ally fails as long as you are within the insurance limits.
Ally keeps being mentioned by security analysts
My reading of that, they are so far concerned rather about the performance than the risks.
We have learnt 6 days ago that in current market the conversion from performance to risk takes 48 hours.
I have no investment advice.
Pay attention to posts #68 and #82.
If paper check distribution is an attempt to slow distribution, Ally is in distress.
If this is the glitch that is fixed or the policy that is reversed, Ally feels safer and you could relax a bit.
To the extend that Corporate Bondholders enjoy no protection, second/third to Shareholders to be wiped-out and second/third to last to be reimbursed.
Depending on the Bankruptcy chapter there may not be shares of the dissolved entity and after all creditors are paid you'll receive cents on dollar as final distribution, or...The entity is allowed to recapitalize itself through new emission and you receive shares worth cents on dollar.That is in case of court supervised voluntarily Bankruptcy.
Where FDIC shuts the Bank, FDIC becomes sole asset owner with no regard to former Share or Bond Holders.
After asset is liquidated Bondholders may or may not get whatever is left after
Depositors and Creditors are paid.
Please, consult with Financial advisor...I am way out of my comfort range on this subject.
Nothing personal, but I wonder how others could speak freely on the issue that takes a carrier to master.
"Ally Financial Inc. (ALLY) -- the third largest bank on the list by Dec. 31 total assets -- stands out as having the largest percentage of negative accumulated comprehensive income relative to total equity capital as of Dec. 31.
To be sure, these numbers don't mean that a bank is in trouble, or that it will be forced to sell securities for big losses. But SVB had both a troubling pattern for its interest margins and what appeared to be a relatively high percentage of securities losses relative to capital as of Dec. 31."
https://www.morningstar.com/news/marketwatch/20230311312/20-banks-that-are-sitting-on-huge-potential-securities-lossesas-was-svb
It's a little technical, but to try to simplify, The reason SVB failed is that a lot of their investments were tied up in long-term bonds which have been creamed by inflation. Inflation is what got them in trouble. So when depositors started demanding money, they had to liquidate those bonds at deep losses. Apparently Ally MAY have a similar investment issue that could be a serious problem.
However, this guy-"By Philip van Doorn" has become SINGLE expert quoted everywhere as Oracle of the kind, on the occurrence that will baffle Noble prized Economists for ages. He published his "Doom" assessment as initial 10 Banks list couple of hours following the public disclosure, then followed with 20 Banks list few hours later... I wonder.
None of the reasons are true, no matter how much they oversimplified.. not the investments, not the inflation, not even the losses.
Speaking of losses, this van Doom reports $1.9B of negative book value and $1.8B of realized losses!!!
For the Bank with $200B in total assets and $175B of liabilities it is a mosquito bite. it is Nonce, it is like me declaring Bankruptcy and getting evicted because I spent $1.5K on weed while gambling away $50K since December 31st.
The real culprit of SVB failure is macro-economical, it is a systemic Liquidity Crisis.
and the reasons are rapidly rising interest rates and deflation of fixed income securities AND the failure of biggest and most liquid Fixed Income market to exchange "marketable" Securities for Cash. The failure of SVB is that it relied almost exclusively on Silicon Valley startups, kind of customers who by the very nature generate little to none cash inflow and when IPO and Private Equity injections dried up SVB was left with nothing but the Deposits outflow. Then was Goldman, Moody's, FDIC and finally BTFP.
We only talk here about this because irresponsible opinions can spark another run for another no good reason.
When you say "we," I am not sure which "irresponsible opinions" you are repeatedly referring to. But I am already a victim of Ally depositor default and come from a banking career. I see no reason to remain silent about it or to make believe I don't understand the issues. I predict nothing. I post facts.
The last thing I want is to see is Ally fail as it would be an administrative nightmare for me. I have skin in the game. But neither do I want to remain silent and be caught by surprise and have them deal me yet another loss without discussing what's going on. They need to get their act together. I have been talking about it for at least a couple of years. I hope they will take this opportunity to do just that. And I hope the frustration they are hearing from their customers will be a catalyst for them to do it before they lose the chance to do so.
"If you had a banking career it possibly may have just been the security guard stationed at the door!"
There is no reason to denigrate people who are employed as bank security guards.
The reference to "opinion" wasn't related to yours.
As for the missing bonus, your grudges here are misplaced.
Would be more productive if you locate the contacts of Ally's Compliance Officer or "Customer Advocate" if Ally has such office and deal directly with them... you may get a response and/or resolution.
Alternatively, you have the right to file the complaint with CFPB, this way the response is guaranteed as a copy of the communication sent to CFPB.
keep in mind that CFPB will not be arbitrating the resolution in your favor.
It's apparent that you may not be aware of this but this is a forum for participants to share information about and experiences -- both good and bad -- with financial institutions.
There, please. Ignore everything I said, it won't be helpful to your one way journey.
I didn't bother with the Ally deal last fall. Have other stuff going on; too much trouble and annoyance. So no negative remarks from me on that one. I am (for now) keeping my Ally total south of a quarter million. That could change.
Nearly everything I do at Ally is via ACH. But yesterday they did a good job of cashing a couple of small (paper) checks for me, online with no cell phone involvement whatsoever. Fun cashing checks from home in the middle of a blizzard. Couldn't do that fifty years ago!
All in all Ally is a good bank with great service and rates.
Either way, not a good time for BBB-, I suppose if Ally offered 9% for 12 months it would still be listed
Great wealth is created by braves during crises at the cost of 100x losses of other braves.
Good call, there is no price for good night sleep.
But, keep looking, crises stirs up the opportunity.
If you are not greedy, are diversified and can handle the losses, you may hit the jack pot.
In short summery of all this. Every should know the liberal politicians and billionaires don't want the Fed to raise interest rates anymore. So after Weds Fed meeting, That night started the downfall of SVB. Coincidence right? For the Fed to STOP raising rates, the bank sector would have to crash. So they made SVB a example. Follow the dark money. SVB Board and shareholders with millions was told their accounts will be safe long before the Fed stepped in on Sunday. Signature also. They wanted the the Bond market to crash, banks just to get the Fed to stop and or drop Interest rates in the next 2-3 cycles.. Europe followed a few days later. Powel should ignore the "Dark $$ Billionaires who control Washington DC and continue to fight inflation to get to the 5.75-6.00 interest rate by July. A Pause then though end of this year will help with slow decreases after CPI drops below 4. It be nice to see more banks doing a 4.5-5 on a 3yr or 5yr CD.. might be hard though as most feel in 3 years inflation will be down to 2.5-3%
"liberal billionaires", " downfall of SVB", "Dark $$", "control Washington DC", "Bond market to crash", "Europe followed", "4.5-5 on a 3yr or 5yr CD".
Let's throw in Jews and Immigrants, sprinkle with Joe and Donald... and the Great theory of the Economy is cooked...after just "3yr or 5yr" in line to soup kitchen.