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Finding 5.25 Percent Callable 5 Years On Etrade

GH1
  |     |   1,053 posts since 2017

Burke Herbert Finl Svcs Corp

Callable 03/24@100 5.25 03/15/2028

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3


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me1004
  |     |   1,379 posts since 2010
The big reason to get a 5-year CD now is to hold onto high rates for years after the Fed decides to go back to 0%, or at least no more than 1%. Thus, the idea of using a callable CD -- you are not going to get 5 years on that CD! They will call it as soon as it becomes a weak or poor value for them. And that could be much sooner than you think, maybe even two years, but probably longer than that, certainly it could be three years. They a e not going to pay 5% if mortgage rates are back down to 4%, or even less. So flashing that 5% for for 5 years is just a marketing gimmick to sucker people in.
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6
Kirkland
  |     |   374 posts since 2014
I noticed this one too and thought wow, what a guaranteed great rate for at least a 1 year CD, payable monthly, at 5.25%. It says not callable for 1 year!
The Fed is not going back to zero but if rates drop by next March, then it will be called. It is callable monthly beg. 3/2024
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2
Evil_Capitalist
  |     |   157 posts since 2022
I wouldn't recommend putting all of your free cash into any CD right now. If you want to lock in a portion of what you have, fine, I guess, but I personally wouldn't commit to ANY CD right now.

There is just too much uncertainty as to where the ultimate Fed High Rate is going to land. My prediction is that anyone locking in any APY below 5.25% is going to be kicking themselves by July.

P.S.  I agree with Kirkland on the ultimate fate of interest rates.  I seriously doubt they are ever going back to 0%.   In my opinion, interest rates should stay at 5% forever, which is less than HALF of what they were when I was in High School back in the late 70s. (11.20%)  The world didn't end when you could earn a very impressive return on your savings account.  In fact, things were much better back then as far as I remember.

I wish I had had the cash I have today back then! I could have lived off that 11.20% and traveled the world instead of working a 9 to 5!  ;o)
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7
GH1
  |     |   1,053 posts since 2017
Yes only deploy lower amounts shorter terms. When cds were 3.29 I thought wow that’s awesome. Now about 5. But everything can chg quickly.? Just make sure your money is earning. One major bank said oh keep everything in market. I said you’re fired. Lol
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