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Best Bank Account Interest Rates - Summary for October 3, 2017

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Best Bank Account Interest Rates - Summary for October 3, 2017

The odds of a December Fed rate hike continue to look solid. As long as the economy doesn’t nosedive, the Fed is likely to hike rates at its December meeting. There might be some disappointments in the economic news in the next month. We’ll soon be seeing some of the effects of the hurricanes on the economic data. The September jobs report that’s scheduled for release this Friday is anticipated to show fewer jobs gains than previous months. Nevertheless, the Fed made the point at its last meeting that the impact of the hurricanes should only be temporary, and that will not alter its plans. Thus, it’s likely the Fed will hike in December. Economist Tim Duy described what he expects from the Fed in December and in 2018 in his Fed Watch newsletter:

If this pace of job gains continues through the end of the year and does not look likely to slow to 100k in early 2018, the Fed will tend toward maintaining the current pace of rate hikes (three in each 2017 and 2018) despite weak inflation.

One thing that should increase the odds of at least three rate hikes in 2018 is the appointment of a new Fed Chair. Last week President Trump interviewed Fed Governor Jerome Powell and former Fed governor Kevin Warsh. The odds seem to be rising that President Trump will choose a new Fed Chair to replace Janet Yellen when her term ends in February. Any new Fed Chair will likely lead to a faster pace of rate hikes than would occur if Janet Yellen remains as Fed Chair.

The odds of a December Fed rate hike based on the Fed funds futures declined slightly from last week, but the odds continue to be strong at almost 78%.

All Treasury yields are up from last week with the long-dated Treasury yields up the most (both the 10-year and 30-year were up 9 bps).

The following numbers are based on Daily Treasury Yield Curve Rates and the CME Group FedWatch.

Treasury Yields:

  • 1-month: 1.01% up from 0.96% last week (0.52% on Jan 3)
  • 6-month: 1.21% up from 1.19% last week (0.65% on Jan 3)
  • 2--year: 1.47% up from 1.45% last week (1.22% on Jan 3)
  • 5--year: 1.92% up from 1.87% last week (1.94% on Jan 3)
  • 10-year: 2.33% up from 2.24% last week (2.45% on Jan 3)
  • 30-year: 2.87% up from 2.78% last week (3.04% on Jan 3)

Fed funds futures' probabilities of future rate hikes by:

  • Dec 2017 - up by at least 25bps: 77.9% down from 83.1% last week
  • Dec 2017 - up by at least 50bps: 1.2% down from 1.7% last week
  • Jun 2018 - up by at least 25bps: 90.5% down from 91.5% last week
  • Jun 2018 - up by at least 50bps: 47.8% up from 43.8% last week

Savings and Checking Account Rates

The expectation that another Fed rate hike is coming appears to be encouraging the internet banks into hiking their savings and money market rates. In the last two weeks, four internet banks and a credit union raised their savings or money market rates.

The most noteworthy rate increase was at Popular Direct which raised its Plus Savings Account by 19 bps to 1.40% APY. Unlike some of Popular Direct’s past rate hikes, this one didn’t involve the creation of a new account. So both existing and new customers will benefit.

Two other significant rate hikes were at two large internet banks. Synchrony Bank increased its High Yield Savings Account rate by 10 bps to 1.30% APY, and American Express Bank increased its High Yield Savings Account rate by 10 bps to 1.25% APY. Hopefully, these rate hikes will put pressure on the other large internet banks like Ally and Barclays to increase their rates.

Alliant Credit Union increased its High-Rate Savings Account rate at the start of October by 5 bps to 1.16% APY. Alliant continues to be a little disappointing. Ten years ago when rates were "high", Alliant was a rate leader. They are now far away from the rate leaders with no sign they plan to compete.

My 1.25% club (nationally available savings and money market accounts with non-promo rates of at least 1.25% APY) has grown to 17. With this large number of banks, it’s time to start a new, more exclusive club that I’ll track going forward. That will be the 1.40% club. There are currently five members: State Bank of Texas Jumbo Money Market (1.55% APY), UFB Direct Money Market Savings (1.41% APY), DollarSavingsDirect Savings (1.40% APY), Live Oak Bank Savings (1.40% APY) and Popular Direct Plus Savings (1.40% APY). I’m excluding the Mega Money Market accounts from All America Bank and Redneck Bank since these have $35k balance caps.

Reward Checking Accounts

Again, there were no changes to my list of nationally available reward checking accounts. Reward checking rates have been slower to respond to the Fed rate hikes as compared to internet savings account rates. Since much of the rates of reward checking accounts are paid for by debit card activity, banks may continue to go slow with rate hikes.

To find the highest reward checking rates and balance caps in your state or nationwide, please refer to our reward checking rate table. If you're new to reward checking, please refer to my blog post, Overview of Reward Checking and Our Reward Checking Table.

Certificate of Deposit Rates

I’m now publishing my CD survey as a separate post. Please refer to my survey of the best CD rates. This recap will focus on banking news of the week and liquid accounts.

CD Deals: I just wanted to include this reminder of a few noteworthy CD deals that are available.

We finally have a 3% CD. Unfortunately, it’s not nationally available. 1st United Credit Union in California is offering a 3-year CD earning 3% APY. Minimum deposit is $1k, with no stated balance cap. Membership is open to residents in several Northern California counties. For more details, please refer to this blog post).

For nationally available CDs, the highest rate is 2.60% APY for a 5-year CD from Mountain America Credit Union (see blog post).

You can now get 2% for terms as short as 24 months. One of the best deals is a 30-month CD with a 2.21% APY. This is available at EBSB Direct (see blog post).

I don’t think it’ll be too long before we see rates on CD terms around 12 months reaching 2%. The latest CD to get close to this rate is the 14-month CD that earns 1.75% APY from INOVA Federal Credit Union. Minimum deposit is only $200 (see blog post)

Ally Bank’s 11-month No Penalty CD continues to earn 1.50% APY for balances of at least $25k. Balances of $5k to under $25k earn a 1.25% APY. The advantage of Ally is an easy account opening process and easy account management. Please refer to this blog post for more details. CIT Bank is also giving Ally some competition with its 11-month No-Penalty CD which earns 1.45% APY, with only a $1k minimum deposit (see blog post).

Rates as of October 3, 2017

Checking/Savings/Money Market Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
State Bank of Texas1.55% ($100k)Jumbo MMDA - Account review
All America Bank1.50% (up to $35k), 0.50% ($35k+)Mega Money Market Account - Account review
Redneck Bank1.50% (up to $35k), 0.50% ($35k+)Mega Money Market Account
UFB Direct1.41% ($5k min)Money Market Savings - Account review
DollarSavingsDirect1.40% (no min)Dollar Savings Account - Account review
Live Oak Bank1.40% ($250k max) Savings Account - Account review
Popular Direct1.40%Popular Direct Plus Savings - Account review
EBSB Direct1.39% ($50k+), 0.20% ($5k+)Money Market Direct - Account review
Self-Help Federal Credit Union1.37% ($500k), 1.27% ($500) Money Market - Account review
United Bank (MA)1.36% ($500k max, guaranteed for 6mo) Advantage Money Market, Not available in all states, Account review
CIT Bank1.35% (up to $100k), 1.30% ($100k+) Premier High Yield Savings - Account review
Salem Five Direct1.35% eOne Savings, for new customers only Account review
Signal Financial Credit Union1.35% ($25k, enrollment in Premium Bundle) Premium Money Market - Account review
EverBank1.31% (1yr intro rate) 0.86% ongoing rateMMA - Account review
SFGI Direct1.31%Savings account - Account review
Synchrony Bank (formerly GE Capital Retail Bk) 1.30%High Yield Savings - Account review
Nationwide Bank1.30%Online Savings - Account review
Sallie Mae Bank1.30%MMA - Account review
BankPurely1.30% ($1 min) SavingPurely - Account review
ableBanking1.30% ($250 min)Money Market Savings - Account review
PurePoint Financial1.30% ($10k min)Online Savings - Account review
UFB Direct1.30% ($25k+), 0.20% ($100) Premium Savings - Account review
The Palladian PrivateBank1.30% (6mo intro rate) 1.10% blended APYSavings Account - Account review
Northern Bank Direct1.26% ($250k max) Money Market - See review
American Express Bank1.25%High Yield Savings - Account review
BBVA Compass1.25% ($10k min)ClearChoice MMA Promo - Account review
McGraw-Hill Federal Credit Union1.25% ($75k), 1.10% ($20k),1.00% ($5k) (guaranteed through 8/31/17)Ascend Account - Account review
EverBank1.21% (1yr intro rate) 0.71% ongoing rateChecking - Account review
Incredible Bank1.21% ($2.5k), 0.05% ($250k+)IncredibleBank Savings - Account review
Barclays1.20%Online Savings - Account review
GS Bank1.20%Online Savings Account - Account review
Radius Bank1.20% ($2.5k min)Radius High-Yield Savings - See review
Ally Bank1.20%Online Savings - Account review
Capital One1.20% ($10k+), 0.60% (up to $10k)360 Money Market - Account review
Alliant Credit Union1.16% ($100 min)High-Rate Savings - See review
My e-BAnC by BAC Florida Bank1.15%Super Saver - Account review
Discover Bank1.15% (no min) Online Savings - See review
FNBO Direct1.15%Online Savings
MyBankingDirect1.15% ($5k+), 0.25% (less than $5k) Earn >More Money Market
SmartyPig1.15% ($10k min), 1.05% (less than $10k)SmartyPig Savings - Account review
Nationwide Bank1.15% ($10k), 1.00% ($1)Nationwide Member Checking Account
Connexus Credit Union1.15% ($100k), 1.00% ($50k,) 0.75% ($20k)MMA - active chk required
Northpointe Bank1.12% Statement Savings - Account review
Northeast Bank1.10%Pearl Money Market Promo, new customers - Account review
Dime Savings Bank1.10% Dime Direct Money Market, new money - Account review
iGObanking.com1.10% ($25k min) MMA, New accounts and new money only, Account review
Chevron Federal Credit Union1.10% ($250k+), 1.00% ($2.5k+) MarketEdge Savings
Quorum Federal Credit Union1.10% HighQ Savings
Pacific National Bank1.06% Money Market Deposit Account - See review
AloStar Bank of Commerce1.05%Savings account - Account review
Bank of Internet USA1.05% Smart Money Market
Bank of Internet USA1.05% Smart Savings
Discover Bank1.05% ($100k min), 1.01% ($2.5k) MMA - See review
NBKC Bank1.01% Personal Money Market Savings
iGObanking.com1.00%iGOsavings - Account review
MySavingsDirect1.00%MySavings Account - Account review
UFB Direct1.00% ($20k min)UFB Savings - Account review

Reward Checking Accounts:

  • Noteworthy Accounts Available Nationwide:
InstitutionRatesNotes
Northpointe Bank5.00% (up to $10k), 0.10% ($10k+) UltimateAccount - Account review
Consumers Credit Union4.59% (up to $20k) Rewards Checking - debit card and $1k credit card requirements
Consumers Credit Union3.59% (up to $15k)Rewards Checking - debit card and credit card requirements
One American Bank3.50% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Consumers Credit Union3.09% (up to $10k)Rewards Checking - debit card with NO credit card requirements
Evansville Teachers Federal Credit Union3.00% (up to $15k), 0.00% ($15k+)Vertical Dividend Checking - Account review
Lake Michigan Credit Union3.00% (up to $15k), 0.00% ($15k+)Max Checking
Great Lakes Credit Union3.00% (up to $10k), 0.10% ($10k+)Ultimate Checking
Security State Bank3.00% (up to $10k), 0.25% ($10k+)Kasasa Cash - Account review
Partner Colorado Credit Union3.00% (up to $10k), 0.50% ($10k+)High Interest Checking
American Bank & Trust2.51% (up to $10k), 0.25% ($10k+)Kasasa Cash
Industrial Bank2.50% (up to $15k), 0.25% ($25k+)Kasasa Cash
Capital Educators Federal Credit Union2.50% (up to $10k), 0.20% ($10k+)High Yield Checking
New Buffalo Savings Bank2.27% (up to $35k), 0.2497% ($35k+)Kasasa Cash - Account review
Bellco Credit Union2.25% (up to $25k), 0.25% ($25k+)Boost Interest Checking - Account review
Main Street Bank2.25% (up to $25k), 0.25% ($25k+)Kasasa Cash - Account review
Altra Federal Credit Union2.25% (up to $15k), 0.50% ($15k+)A+ Checking
Coastal Credit Union2.25% (up to $10k), 0.10% ($10k+) Go Green Checking - Account review that includes companion Go Green MMA
Georgia Bank Company2.15% (up to $25k), 0.40% ($25k+)Kasasa Cash - Account review
TruStone Financial Credit Union2.02% (up to $20k), 0.10% ($20k+)TruRate Checking - Account review
BankFirst2.02% (up to $10k), 0.15% ($10k+)Kasasa Cash
Finex2.018% (up to $25k), 0.20% ($25k+)Axcess Rewards Checking, Premier Account (formerly First New England Federal Credit Union)
XCEL Federal Credit Union2.01% (up to $25k), 0.03% ($25k+)Kasasa Cash Checking
Bay State Savings Bank2.01% (up to $20k), 0.25% ($20k+)Kasasa Cash - Account review
Legence Bank2.01% (up to $10k), 0.25% ($10k+)Kasasa Cash
5Star Bank2.00% (up to $25k), 0.15% ($25k+)Kasasa Cash Checking Account review
Country Bank2.00% (up to $20k), 0.25% ($20k+)Kasasa Cash Checking Account review
Elements Financial2.00% (up to $20k), 0.10% ($20k+)High Interest Checking - Account review
MainStreet Bank2.00% (up to $15k), 0.25% ($15k+)Kasasa Cash - Account review
Blue Federal Credit Union2.00% (up to $15k), 0.25% ($15k+)Extreme Checking (up to 4% w/account relationships) - Account review
All America Bank2.00% (up to $10k), 0.50% ($10k+)Ultimate Rewards Checking
United Educators Credit Union2.00% (up to $10k), 0.25% ($10k+)Kasasa Cash
KS StateBank1.95% (up to $25k), 0.50% ($25k+)Check PLUS - Account review
Connexus Credit Union1.75% (up to $25k), 0.25% ($25k+)Xtraordinary Checking
First Tech Federal Credit Union1.58% (up to $10k), 0.16% ($10k+)Dividend Rewards Checking
MemoryBank1.50% (up to $250k) EarnMore Interest Checking - Account review
Superior Choice Credit Union1.50% (up to $30k)AMP Checking
Bank of Internet USA1.25% (up to $150k), 0.00% ($150k+)Rewards Checking
Heritage Bank1.25% (up to $25k), 0.10% ($25k+)eCentive Account
ABCO Federal Credit Union1.01% (up to $25k), 0.10% ($25k+)Rewards Checking
Community Bank of Raymore1.01% (up to $10k), 0.20% ($10k+)Kasasa Cash
Community Bank of Pleasant Hill1.01% (up to $10k), 0.20% ($10k+)Kasasa Cash
First American Bank1.00% (up to $15k), 0.21% ($15k+)Everyday Rewards Checking
Bank of Blue Valley1.00% (up to $10k), 0.10% ($10k+)$1k/month debit card req (formerly Ultimate Checking)

Certificates of Deposit:

Bank Account Alternatives - NOT FDIC Insured

InstitutionRatesNotes
Duke Energy PremierNotes1.41% rate for $50K+Duke Energy PremierNotes review
Ally Financial Demand Notes1.15% rate for $50k+
Ford Interest Advantage1.15% rate for $50k+Ford Interest Advantage review
Vanguard Prime Money Market Fund1.12% 7-day yield
Fidelity Money Market Fund0.98% 7-day yieldreviews on Fatwallet
Vanguard Tax-Exempt Money Market Fund0.81% 7-day yield
Fidelity Municipal Money Market Fund0.57% 7-day yield
Related Pages: savings accounts, money market accounts, checking accounts, reward checking accounts, nationwide deals, Internet banks
Comments
Kaight
Kaight   |     |   Comment #1
As a Bellco Index Advantage participant, I offer Ken sincere thanks for such a heartening writeup. Thank you, KEN!! It appears January 1, 2018 could turn out to be a REALLY Happy New Year for yours truly.

Requisite acknowledgement:

I realize even Ken could be wrong about a December hike and about subsequent Fed rate hikes during 2018 as well. Nobody can predict interest rates, and I acknowledge Ken makes no pretence whatsoever about so doing.

Still, it is fun for a "CD person" like me to read such a wonderful and hopeful assessment as this. The Bellco Index Advantage CD brings out what little gambler remains in me, and it is very little indeed at my age. But the allure of reward in return for (albeit tiny) risk taken is nevertheless irresistible and, simultaneously, entertaining.

Most of Ken's readers are already aware of the Bellco Index Advantage deal. As service to anyone not familiar, the product is gone. It was pulled down by Bellco a while back. I cannot say as I blame Bellco for their withdrawal of this CD. After all, in a best case scenario (only), by the end of 2018 owners of this CD could be receiving 3.45% APY interest on a CD with only about 27 months remaining in its term. Conceded I will be shocked if that happens. But it is such fun to dream!
gregk
gregk   |     |   Comment #3
This is not a "wonderful and hopeful assessment", Kaight. 2% to 3% CD's 10 years in the making after their financial crisis plunge is nothing but a still dire state of affairs for many of us, and should a new recession hit those still paltry rates will be deep into the crapper once again (from which they've barely even emerged). Astonishing what posters will now refer to as "great deals" when they are anything but. After taxes and (real) inflation you are probably taking a loss, - not something in my mind worth getting enthused over. These FI's have you all right where they want you, licking crumbs off the floor and feeling grateful for them, with Ken leading the cheers. Pathetic.
Kaight
Kaight   |     |   Comment #4
OK, fair enough. So do please tell us, what are prevailing interest rates like on your home planet which, based on what you wrote, I'm guessing is Ur-anus.
deplorable 1
deplorable 1   |     |   Comment #10
@Kaight: Bazinga! That actually did make me laugh. I wonder if gregk was this upset for the last 8 years or if this anger about interest rates has only surfaced since Trump is now in the white house.
deplorable 1
deplorable 1   |     |   Comment #9
@gregk: This is a cautiously optimistic assessment which I happen to agree with. I wouldn't exactly call it "cheer-leading". After 8 years of bad news on interest rates ANY upward movement is almost worth cheering about. It looks like long term treasury rates are rising and the yield curve is going back to normal which is very good news. I do however believe the banks are 100% taking advantage of the interest rate situation by holding off as long as possible in raising rates to savers in order to boost profits. This is particularly infuriating since us savers and taxpayers are the same folks who bailed them out after the mortgage crisis. There is always monthly and quarterly dividend paying stocks which in my opinion are the safest alternative to replace lost interest income. I earn from 5-20% APY in MONTHLY paying dividend stocks. My PBA just hiked dividends for the second time this year and they are tax free qualified dividends as well and MORL pays me north of 20% with a $15 cost basis. With a combination of interest and dividends is is quite easy to average 5% or better and that isn't even counting any stock appreciation.
Att
Att   |     |   Comment #5
The institution could also fail and you wouldn't get the rate. I'm not familiar with the product, is it insured?
Kaight
Kaight   |     |   Comment #6
Yes, the Bellco Index Advantage CD is NCUA insured. Ken currently lists Bellco with an "A" rating. It is the 44th largest CU in America, and failure is not likely.

Gosh a bit of negativeness this morning in response to a happy post. I guess the natives are restless and concerned. If so do not, I emphasize DO NOT UNDER ANY CIRCUMSTANCES, read my forum thread here:

https://www.depositaccounts.com/community/misc/29877-potential-threat-older-americans.html
Luvcd
Luvcd   |     |   Comment #7
Kaight, you posted on the forum about guardianship...an attorney filed a lawsuit in Michigan regarding the "shame" aspects of guardianship in that state and on another blog that triggered a host of comments regarding Nevada and other states. For those interested, attorneys and non-attorneys can join the American Bar Association Elder Bar blog listserv...free
DJT
DJT   |     |   Comment #2
FYI - Palladian Private Bank dumped their intro rate from 1.30% to 0.90%. I just noticed on my September statement.
Sylvia
Sylvia   |     |   Comment #8
DJT, the 1.30% promo rate expires after 6 months. To continue the rate for another 6 months, you need only open a new account with funds from old, as long as promo is still open. You can do this online. I've done it a couple times already. Of course, they could make it easier but not an insurmountable deal.
DCGuy
DCGuy   |     |   Comment #12
Many people are too lazy to monitor rate changes. There are billions still in near zero rate accounts in banks and brokerages. Banks bet on inertia.
deplorable 1
deplorable 1   |     |   Comment #11
As the Dow nears 23,000 another all time high I have noticed many articles touting Obama's stock market performance as being better than Trump's. Now first of all Obama had 8 years and Trump hasn't even had a year yet so it may be a little soon to compare. They then go on to site Obama's performance from the low of around Dow 6,000 to 18,000 or so where it topped out. Ok fine some pretty great performance there off the low. Now what about comparing top to top? The Dow topped out around 14,000 under G.W. Bush and around 18,000 under Obama(after 8 years) now in Trump's first year we are nearing 23,000. Now this tells a radically different story and shows that Trump has already surpassed Obama's stock market performance in his first year. I'm taking this from the perspective of a long term investor who was invested pre-Bush and rode the market up and down. Anyone just start investing @ Dow 6,000?
DCGuy
DCGuy   |     |   Comment #13
I started investing in the market back in the 1980s when the Dow was 1700 (after a big drop in October, 1987 referred to as Black Monday). That drop was almost 1/4 of the previous Dow level. I started to dabble in the market after my granduncle passed away and left behind his stock holdings a few years earlier.
Bozo
Bozo   |     |   Comment #14
DJIA from roughly 1000 to 22,000 in less than 40 years. Don't we boomers love the step-up in basis? Seriously inside joke.
Bozo
Bozo   |     |   Comment #15
Further to comment #14, the step-up in basis on death is one of those tax dodges seldom attracting much attention. Were one to sell an appreciated asset while alive, one might expect capital gains tax. But, if you die with those appreciated assets, the tax goes "poof". It's the magic of step-up in basis.
Bozo
Bozo   |     |   Comment #16
Further to comment # 15, theoretically, any rational tax reform package would note the illogic of the step-up in basis. Frankly, I doubt anyone alive has any idea from where it originated, or why it even exists.
Pual
Pual   |     |   Comment #24
I have been selling for the last two years and continue to do so, mostly Individual stks.
Now I'm getting out (majority, not totally) of my IRA VG funds. total skt mkt, selling 70% from it. Primecap, selling 80% of it and healthcare (my favorite fund) only 25%.
The market is really acting silly in the last 9 months and I refuse to get slaughtered like in the past.
DCGuy
DCGuy   |     |   Comment #27
There was the dot-com bust in 2000 and then the subprime meltdown in 2008. After another eight years (2016), no market decline in sight. Maybe we dodged a bullet?
deplorable 1
deplorable 1   |     |   Comment #29
@Pual: I'm not seeing a inverted yield curve at the moment which in my opinion is one of the best indicators of the next downturn. I think you will be losing out if this market continues to run. Before the 2008 drop I was 80% in equities and only 20% cash. I didn't sell at a loss but I quickly figured out that my risk tolerance is only about 55% stocks max. So I just kept on pulling out dividends monthly until I hit my comfort zone. Luckily the market rebounded and I picked up some cheap shares on the way back up. That's the great thing about high yield monthly paying dividend stocks you don't need to panic sell in a down turn if you are not comfortable buying then just bank the dividends. Much safer than just buying a stock and then hoping and praying that it goes up and taking a loss if it doesn't pan out.
DCGuy
DCGuy   |     |   Comment #28
I like that life insurance benefits are 100% tax free. Unfortunately, you have to die in order to benefit from the tax exclusion.
CuriousDave
CuriousDave   |     |   Comment #33
The step-up in basis is not a tax "dodge." Congress put in this provision long ago because, at the time, estate taxes applied to a much larger percentage of estates than now, and it was considered unconscionable (not sure if that's the right word to use when talking about politicians) to impose both an income tax and and estate tax on the appreciation of the same assets. It now takes an estate with net assets having a market value as much as about $5.5 million (potentially as much as twice that amount for surviving spouses) before even a dime of federal estate tax is due, so the step-up is now an unintended (?) boon for the wealthy and the likelihood that it will be scrapped as part of tax reform is somewhere between remote and zero.
Bozo
Bozo   |     |   Comment #17
Is anyone, other than me, taking profits in this nosebleed market?
deplorable 1
deplorable 1   |     |   Comment #18
I'm mostly invested in stocks that pay dividends so I usually take profits just by putting the dividends back in the bank rather than purchasing more shares. It does get tempting to sell though when your share price has doubled. Then the problem becomes where to put the profits at these low interest rates? I guess as far as problems go that is a good one to have.
Bozo
Bozo   |     |   Comment #21
Deplorable 1, as I noted over on the Forum, I culled my stock profits from 2017. The primary issue is pulling the trigger. The secondary issue is "then what"?

It's sort of a "win some, win maybe more" scenario. I'm thinking seriously of plopping the gains in the 1st United 3% 3-year CD.

I do have one over-riding, old-fashioned philosophy. Once I harvest a gain, I never look back. It's now "my money".
deplorable 1
deplorable 1   |     |   Comment #23
@Bozo: In this interest rate environment 3% on a 3 year CD is a awesome deal and a great place to park some stock market gains IMO. It looks like a add-on cd to boot so if rates are low later on you could plunk some more in there. No cap as well. As usual I don't qualify for this deal. You better hop on that quick I bet it won't last. NFCU pulled it's 3% 5 mo. CD the other day. Did you see the post on the Beam savings account? 2-4% APY on liquid cash. It sounds a bit fishy like some kind of new app(scam) a millennial just came up with to sell email addresses and personal info of early adopters. Hope I'm wrong though as 2% on liquid cash would be nice.
Pual
Pual   |     |   Comment #25
But, having said that, I believe there is further upside to this ridiculous market, but I'm not a player going forward.
I must sleep at night.
deplorable 1
deplorable 1   |     |   Comment #19
@DCGuy: Back in the early 80's I was still pretty young although I did have money to invest(around $20,000 I saved from cutting lawns/odd jobs as I recall). Not bad for a kid. The stock market didn't really appeal to me back then as fees for mutual funds and brokerages were high. You could also get 10%-12% in FDIC insured bank accounts and 15% in short term t-bills/CD's. I remember people telling me that I should be invested in the stock market and that nobody ever got rich by keeping their money in the bank. I guess these folks didn't understand the power of compound interest over time as I doubled my money in around 5 years back then. Ahh the good old days earning tax free money, living at home with no bills and high interest rates. Then I got my first "real" job and when I got my first paycheck I was so angry I went up to my dad and asked him "who the hell is FICA and what did they do with my money!?".................My dad looked at me and laughed and said "Welcome to the real world and taxes son!"
Bozo
Bozo   |     |   Comment #22
Ah, memories (re comment #19), Back in the early 80's, when inflation and interest rates were truly crazy, I bought a 10-year 10% CD. The irony, once inflation was tamed, those 10% 10-year CDs just kept clicking along.
DCGuy
DCGuy   |     |   Comment #26
I missed out on the14% 30 year Treasury Bond rate lock as money market rates hovered over 10% in the 1980s. At the time, I thought that rates would remain high for many years, but they began a steep decline in the 1990s. Had I bought them, they would just mature a few years earlier and the 30 year T-bond rate now would be below 3%.
Bozo
Bozo   |     |   Comment #30
DCGuy, re comment # 26, you have to be of a "certain age" to remember 30-year Treasuries at 10%+. It was weird. You'd walk down the street, and every bank would have a chalk board with its latest rate. Ah, the early 80s. Disco balls, leisure suits, and 10% CDs.
Jersy
Jersy   |     |   Comment #31
#30
And 15% mortgage rates!
Att
Att   |     |   Comment #34
I remember in 1990 when I bought my first home mortgage rates were around 11%. I was able to get a SONYMA mortgage for 8.5% which at the time was considered extremely low. The rate on my current home is 3.25%.
DCGuy
DCGuy   |     |   Comment #35
I remember when gas was 35 cents a gallon in the 1973 just before the Arab Oil embargo. When the price went above $1 a gallon, prices on everything else went up too.
deplorable 1
deplorable 1   |     |   Comment #39
I remember sitting in the back seat of my parents car endlessly waiting to buy gas. Peanuts, liver pills, gas lines, job losses and my angry parents is what I remember about Carter. Now I get it as that's how I felt about Obama.
Luvcd
Luvcd   |     |   Comment #40
But, you haven't taken the liver pills, had gas, and angry parents for years...
Bogie
Bogie   |     |   Comment #36
There are always be winners and losers.

People with ultra low mortgage rates today aren't concerned about the pitiful low interest rates we savers are stuck with.
Bogie
Bogie   |     |   Comment #37
My comment #36 was in reply to Jersy's comment #31
#20 - This comment has been removed for violating our comment policy.
deplorable 1
deplorable 1   |     |   Comment #42
I also forgot to mention in my post #11 that Obama's stock market gains came at the expense of us savers with endless QE and 0% interest rates which helped out the stock market big time as it was the only game in town to beat inflation. Since Trump has been in office we have had 3 rate hikes at the FED and the announcement that they will be reducing their balance sheet(ending extended QE) which basically would also have the effect of raising longer term interest rates as well. This makes Trump's stock market performance even more remarkable because it has been happening in a rising interest rate environment. When Obama was president if there was even a whisper of ending QE or hiking interest rates the market would tank(think taper tantrum). Now I know some of you guys on here don't like Trump but you have to admit that the stock market certainly does.
Jersy
Jersy   |     |   Comment #43
#42
Not for much longer...
deplorable 1
deplorable 1   |     |   Comment #45
There has been talk of what is called a "melt up" starting to happen in stocks due to central banks who have the ability to print money buying stocks. This would cause a huge unsustainable run up in stock prices followed by a even bigger drop or crash. This is because the run up would be caused by central banks and investors on the sidelines suddenly dumping cash into stocks rather than fundamentals. The key will be to have a decent amount of cash in the market and getting out before the big crash. I'm betting there will be a big run up in stocks until the uncertainty of the next election which will be a good time to take some profits. This is obviously just my guess and any number of factors could change this timeline.
Jersy
Jersy   |     |   Comment #44
#42
Sort of...
Few want Trump to succeed, especially the entrenched elites who are masters of all universes...political, financial and social. YOU only matter as a source of labor. Fly-over America is held in disdain, history is being forgotten or destroyed and yet the coffers at the top overflow. At this moment I'm surrounded by multi-million dollar second homes, luxury autos and smiling people. Trust me, hedge fund managers (across the street) NY lawyers and their subordinate politicians will do whatever is necessary to maintain the lifestyle to which they are entitled. It's a lot like 1929.
deplorable 1
deplorable 1   |     |   Comment #46
@Jersy: I'm guessing you are talking about the rich liberal elitists who own all the major media companies as well as the Democrat party? Heck even the Republicans want Trump to fail because he was never one of them to begin with. Think about it if Trump were to pass legislation and succeed it would make BOTH parties look like total incompetent fools(which they are) because he is a non-politician. This is the real reason you see all this anti-Trump push back from both parties and the media. I can't remember the last time I saw a unbiased news story.
???
???   |     |   Comment #47
it's your party and you can cry if you want to
deplorable 1
deplorable 1   |     |   Comment #48
@???: There is no party that represents us conservatives that was kind of my point. You liberals, globalist and anti-American types have the Democrat party that represents you guys pretty well. Most Republicans only pretend to be conservative to get elected and then turn into John McLame or forget why they got voted into office in the first place like to get rid of Obamacare for example.
???
???   |     |   Comment #49
Both parties suck, being stuck on their ideologies. At least you have Steve Bannon to fall back on.
#32 - This comment has been removed for violating our comment policy.
deplorable 1
deplorable 1   |     |   Comment #38
More good news for us savers. The new jobs report showed a increase in wages of 2.9%. It also showed a loss of jobs but with all the hurricanes that's not really surprising and most likely transitory. If this trend continues it should put more pressure on the FED to hike interest rates at a faster pace. Another factor is the rising stock market which seems at times to defy all logic. We may be at the beginning of another stock boom which could be pushed even higher with a tax cut package being passed early next year. Meanwhile the liberal media is downplaying all of these factors and telling people that a crash is coming(fear mongering). Well just remember they also said that Trump couldn't win the election, Hillary was a lock and the market would crash if Trump won. Since the election the Dow is up around 5,000 points.
Bogie
Bogie   |     |   Comment #41
Right, deplorable 1. Yet Hillary and her liberal cronies are still in denial. Fortunately mainstream America knows what's good for our country.
deplorable 1
deplorable 1   |     |   Comment #50
I'm sure Ken or many of the readers on here are familiar with Fatwallet so I'm regrettably informing you of this news. My financial flag is flying at half mast today. The Fatwallet and Fatwallet finance forums has been shut down. This is the end of a era. I have found multiple bank deals and financial ideas on this site over the years not to mention the cash back shopping network they used to have. Please pause for a moment of silence.