2.75% 9 Month Or 2.8% 15 Month Or Neither And Stick With A 2.5% Money Market Awaiting Better Deals?

willy12 | Apr 9, 2019 | 143 posts since 2019

I have an Andrews 9 month 2.75% CD maturing soon. I also have an 8 month but they limit them to one special CD per person.

A rep said that when one ended, I could open another but I can only have one each at a time. I could do that the same day it matures so no interest lost in transit.

Ally has the 15 month at 2.80%. Its not a great deal either but It would not require opening another account.

There are a handful of banks & credit unions offering around 3% for 18 months but I'm not sure I want to use up what might be a chexsystems inquiry over what I consider a mediocre rate.

I do not qualify for Navy Federal or an of the current good deals. I am not interested in a CD lasting 4-5 years at current rates.

I am leaning toward another Andrews 9 month for simplicity.

And I am considering opening an Orien RCA which has a 25-30k limit at 4% but that is only a fraction of my maturing CD value and it may involve a chexsystems inquiry.

Why are the chexsystems inquiries a concern? Because I opened a lot of new accounts in the last year or so and I would hate to be rejected at a FI that has a very good deal because of a past mediocre deal.

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Answers

MY2CENTSWORTH | Apr 9, 2019 | 436 posts since 2016

Hey, willy12...I noticed your post and think I have read similar ones from you in the past. I guess I'm a little puzzled that you have such a concern for the Chexsystem inquiry. Have you read the reasons why you could be rejected? Here is a short list from an earlier post on this DA website:
There are several types of banking activity that could cause your ChexSystems report to have negative records. They are:

Having several overdrafts reported in a short period of time
Falsifying information on your bank account
Nonpayment of insufficient funds or overdraft fees
Fraudulent activity
Violation of banking rules and regulations
Account closures due to insufficient funds or failure to pay fees
Bounced checks

I'm certainly aware that you may have concerns, but I personally wouldn't let that get in your way of making the best decision regarding rates. Just my two-cents worth and hope it helps.

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willy12 | Apr 9, 2019 | 143 posts since 2019

A half dozen or so have posted that they have been rejected by some FIs simply for having too many recent new account inquiries. Not for any of the things you mentioned.

Its reasonable to think that most people who are buying CDs do not have the things you mentioned. And thats why I did not think it needed to even be mentioned.

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willy12 | Apr 9, 2019 | 143 posts since 2019

We are left to guess what any specific FI might choose as a cut off number of new accounts.

So, hypothetically, opening a new account for say an 18 month at 3.05%, could keep me from taking advantage of a good deal in the future. (Say something like a 2 year at 3.50%)

Over 15 years ago, I once experienced what I am talking about and the bank in question did not care and would not make exceptions. Since then, I have not. But, in the last 12-15 months, I have opened an inordinate number of new accounts. If it was 2-3, I would not be concerned.

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111 | Apr 9, 2019 | 672 posts since 2019

ddbrege, willy12 and everyone - I used to think ChexSystems only reported on folks who wrote bad checks, etc. During the last few years I've learned that while it certainly does that, it also records many quite normal transactions a customer has with a bank or CU. For the first time, I recently requested and received my ChexSystems report. You get one free one a year - same timeframe as free credit reports.

As expected my report listed no true "negatives" (bad checks, etc.), but that's one good reason for requesting it - to see whether such things have been added in error, and if so to get them removed. So, my data was all "inquiries". Problem is, the reports doesn't list the reason why any inquiry was done. Often they match up with account openings, but sometimes there are others - for example, AgFed inquired when I opened a membership, AND again when I later started a checking account. Had I known this I would have started the checking account upon opening, probably eliminating 1 inquiry. There is another bank that made a 2nd inquiry a month after I opened an account, and I can't figure out why for the life of me.

Then at the other end of things, Sharonview CU where I started several 4% CDs AND a checking account and money market, did no inquiries. Neither did another bank, where I started a checking account. So, the process lacks consistency.

Do these inquiries have negative effects? They can. Some banks and CUs are particularly "ChexSystem sensitive" and will deny an account to those with too many inquiries.

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111 | Apr 10, 2019 | 672 posts since 2019

A couple things to add - in my recent ChexSystems report (the one that everyone gets free annually), the section titled "Reported Information" is where much of the overtly negative info. (they call it - "reports of accounts that have been mishandled, reported for cause, and/or outstanding debts") would be reported. As stated above I didn't have any, but if I had, the report states "Our current practice is to retain this information for a period of five years".

The "Inquiries Viewed by Others" section, which is what I was discussing above, is probably more relevant to most users on this website. Here, ChexSystems states "These inquiries remain on your file for up to 3 years."

Through the grapevine - that is, not in this report - I've heard that "ChexSystems sensitive" financial institutions often look back up to 18 months to see how many inquiries someone has. But, the inquiry data available goes back 3 years, so clearly they could look back that far.

Finally, if you have a ChexSystems "record", you apparently also have a ChexSystems score, much like you might have an Equifax or Experian FICO (or other) score. My ChexSystems report did NOT include any score. I'm assuming that, much as the free, annual Credit Bureau reports to consumers are not required to include their scores, the ChexSystems free annual reports are not required to either.

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AnnO | Apr 10, 2019 | 129 posts since 2018

I haven't done it, but it appears to be possible to request your ChexSystems score for free too, you just have to do it separately from the report request.
https://www.chexsystems.com/web/chexsystems/consumerdebit/page/requestreports/consumerscore/

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willy12 | Apr 16, 2019 | 143 posts since 2019

I am still unsure what to do with my large maturing CD at Andrews. I can roll over all or some of into a 9 month at 2.75%. I could put some in a 15 month at Ally at 2.80%. Or I could just park it at Northern for 2.50%.

I have cranked up two old RCAs that I had stopped using for winter. The 2 weaker ones at 15k at 3%.

I should probably convert those into an Orien. Because even in good weather, I don't want to have to deal with 4 or more RCAs. (I have 2 at Heritage Bank)

I am leaning toward at least half and maybe all going back in another 9 month. I had hoped something else would pop up by now but it has not. And I am not inclined to do a 5+ year term. \

Found a nice 24 month at 3.30% but it was Colorado residents only. That would have been ideal.

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JDubs | Apr 17, 2019 | 69 posts since 2016

Andrews has a 8-month 2.86% CD special.

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willy12 | Apr 17, 2019 | 143 posts since 2019

I already have one 2.86% and its limit one.

But, apparently there is a new one, 17 month 2.95%.

And it seems the 9 month is now dead.

I just logged in and it automatically bought the 1.40% 12 month. So I called and he said they will call me tomorrow because I sure don't want it.

Crap, I HOPE they don't require new money but they probably do.

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AnnO | Apr 17, 2019 | 129 posts since 2018

Northern 2.5% is probably going to drop when the guarantee period ends in June, and then you'll have to consider opening an account at one of the other banks offering 2.5% now.

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111 | Apr 17, 2019 | 672 posts since 2019

True for many folks here. Several times I've come close to liquidating my remaining 2.4% No-Penalty CDs from AgFed, but I've held off because they don't mature till 2021. These rate doldrums have caused changes in approach.

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willy12 | Apr 17, 2019 | 143 posts since 2019

I went ahead & rolled over the entire amount into the 2.95% that matures 9/17/20.

I hope that Andrews keeps their rate longer than the guarantee. They raised the rate and they did not have to. I also have an AA up to $50k at 2.50% and could do a 2nd one if I need to. I was going to do that when Northern jacked their rate up.

The Andrews deal did not require new money.

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