CD Rates Summary - January 18, 2022
Federal Reserve, the Economy and CD Rate Forecast - January 18, 2022Rates in Rapid Decline - Note Regarding DepositAccounts Rate Tables
Due to the Fed’s massive rate cut at the Sunday emergency FOMC meeting, banks and credit unions are starting to respond by making their own rate cuts to their deposit accounts. In short, this is overwhelming our rate tracking system at DepositAccounts. We are trying our best to keep our rates updated, but there are just too many rate cuts for us to quickly process. Thus, in the next couple of weeks, please be aware that the rates we list at DepositAccounts may not reflect the latest rates published by the banks and credit unions. Please make sure you verify the rate with the financial institution by visiting the institution’s website and/or by calling the institution.
For every bank and credit union, we include the institution’s web address and contact phone number in their profile page. These are in the overview section near the top of the bank profile page. When you click on the name of the institution in our rate tables, it’ll take you to this institution’s profile page. You can also reach this page by searching for a bank or credit union in the DepositAccounts search box on the top of each page.
If you don’t see a bank or credit union listed in our rate tables, it might be due to a manual review that’s underway. When our system identifies something unusual with a rate change at the institution’s website, it can temporarily delist the institution's products to minimize the listing of incorrect rates. Once the rates are manually reviewed and it’s confirmed that we’re listing the correct rates, those products will then be listed again in the rate tables. You can check to see if products from a bank are under review by checking the rates section of the bank’s profile page. Search for the bank or credit union in the DepositAccounts search box on top of each page. When you reach the bank profile page, select the rates tab, and you can see if the rates are currently being reviewed.
https://finance.yahoo.com/news/wall-street-wants-even-more-014100174.html
By going out of cycle, on a sunday no less, just makes the action feel more desparate, like the economy couldn't even last 4 more days without this being done. So yeah, I'd say that spooked more than if they had just waited til the normal meeting.
How many CD depositors here spend the interest as it's earned rather than accumulate it in their Certificates? Some, I would guess, but not many.
as gregk said, it makes borrowing cheaper which makes it easier to spend money you don't have.
add to that: it discourages saving. if you aren't saving your money, what is the average person going to do with it? stuff it in their mattress? or spend it?
Anyone buying tomorrow?
Term extensions.
Lowered interest rates.
Opt In provisions.
You didn't see because you didn't look. COVID-19 is a temporary state of affairs, eventually businesses will be reopened. When buying stocks, invertors think long term, gamblers think short term.
Due diligence is looking at the companies (what market segment are they in, what impacts has COVID-19 had or is likely to have on their business - some businesses serve market segments that actually benefited from COVID-19 but their stocks were down mid-march just as much as the businesses that didn't) and their balance sheets (do they have the cash on hand to weather the storm or are they already loaded up with massive debt) and their history (how did they manage previous economic bad times and do they still have the capabilities to do so now) etc. There's no magic to doing due diligence other than using your brain and thinking (and not just about the now, but about the future) as you look at the data.
Should we worry?
What are you people talking about, treasury prices are not falling. Every yield is at historic lows.
I mocked your assertion that treasury prices have fallen. Absolutely nonsensical gibberish.
But seeing non competitive rates
I have always generally supported RCAs, but lately TAB has been the poster child for what not to do. Other RCAs have NOT dropped nearly as fast or far. TAB has now been put into the “suspended animation” ward - I'll leave about $2 in the account but keep it open since there are no fees, and the $25K will probably go into an add-on CD started in 2018. As current yields decline, at some point a guaranteed higher yield trumps liquidity.