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Chance Of Holiday CD Special?

Sevenpercent
Sevenpercent   |     |   15 posts since 2015

Looking for your thoughts on the chance of a few CD specials before the end of the year.  It's a shame that the last 3 year NFCU special only lasted for a short time and had a cap of 100k.  Hoping to see something around the interest rate that deal was even if it's in a 5 year CD.

Any predictions as to what the best rate might be?  If the Fed doesn't lift rates 25 to 50 basis points mid December, I wonder if there's still any chance of a special popping up...   



Answers
Ken Tumin
Ken Tumin   |     |   5,766 posts since 2009
I tried to see if I could get any hints of a December CD special at PenFed (I'm hoping for something like their December 2013 special). No luck. I'll keep trying. If anyone gets an early word of PenFed's December rates, please post them.
Sevenpercent
Sevenpercent   |     |   15 posts since 2015
That would be pretty good if they did something like that again.  This is a separate question, but thought I would ask here since I mentioned the Fed raising rates:  Say there is a 25-50 basis point increase; how long after that day do you expect that increase to be reflected in 5 year CD's (for those that don't run a special in advance expecting it to happen)?
me1004
me1004   |     |   537 posts since 2010
My observations over the years suggest to expect a good three-week delay. But that's very general. In fact, notice, the banks are giving notably more than the zero percent Fed rate already, so how much they might or might not feel the need to raise their rates remains to be seen. More demand on the borrowing side is more likely to push rates up.
me1004
me1004   |     |   537 posts since 2010
Don't know of any, but seems to me in past years there were a couple Black Friday  specials, or was it Black Monday. I have some liquid money I need to put in a CD by Jan. 4, so I sure we hear about any such fast and short specials.
ChasR
ChasR   |     |   139 posts since 2013
Last year, CapEd FCU had both Black Friday and Cyber Monday CD specials. 

I also got the same answer as Ken yesterday at PenFed from a CSR about December rates--i.e., she hadn't heard anything yet. 
Sevenpercent
Sevenpercent   |     |   15 posts since 2015
Couldn't believe how fast quite a few large banks raised their prime rate after the 25 basis point increase yesterday.  Immediately after the announcement on cnbc, up pops Wells Fargo as their first reported bank prime rate increase.

Too bad banks aren't that quick to increase interest rates on deposits and CD's.  I'm still keeping my fingers crossed for a special popping up though.  All the more reason to do it now with this increase and the reports of another few amounting to a predicted 1% by the end of 2016.