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Best Rates On A CD Ladder?

choosefi
  |     |   37 posts since 2017

I want to set up a 7 year non callable CD ladder with monthly dividend, and so far it looks like Crescent Bank looks pretty good:

1 year 5.15% APY

2 y 5.05

3 y 4.80

4 y 4.55

5 y 4.50 (double the amount for year 6, but not ideal)

Vanguard has a 7 y 3.90.

I will need to pay CA state tax, I also checked Fidelity, Schwab, and Raisin, but the rates were lower. If you know of any other high yield banks that you could recommend? Thanks.

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Answers
sams1985
  |     |   781 posts since 2022
Many banks have better rates for the 1 yr and 2 yr term. Click cd rates and you can see by term. 
Advancial CU has better rates on the 3/4/5 yr terms for both the junior jumbo(25k minimum) and jumbo(50k minimum)
Don’t be afraid to split it up. You don’t have to go all in on one bank. It’s a tiny hassle but once it’s set up you’re on autopilot. Don’t leave money on the table for a tiny bit of extra work. 
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me1004
  |     |   1,379 posts since 2010
A good palce to start looking is DA's CD rates charts, second tab from left right under the Website name, above. Of course, it all depends on how much money you will be investing. Also, I write it is New Year's Eve. A lot of CUs use the first of the month as the day they change their rates, as routine, but they can change them at any time. Tomorrow is the first of the month, so these rates might drop, others might rise, although we seem to be in a falling atmosphere now.

The CD rates chart today shows all the rates you posted can be beaten.

Another palce to look is at Ken's bi-weekly story about CD rates, especially the chart at the bottom. He sometimes picks up rates in there that don't seem to be reflected in the CD rates chart.

Also, watch this form, people do post some rates otherwise not listed elsewhere yet. Ken's daily stories can help similarly.

CD Rates chart today:

5 years: US Senate FCU is paying 4.85% APY, but that required at least $200,000. Fro $100,000, it's 4.80% and less is 4.75%. I will say, take note, its user rating is only 2.5 starts (and well deserved, although once you're in and CD opened, you shoudn't have to deal with them for five years).

4-years: You can get 5.0% APY at Farmers Insurance FCU, and that requires only $1,000. But note its user rating of only 1.5 stars!

3-years: US Senate and Farmers FCU still the top ones, at 5.23% APY and 5.0% APY, respectively.

2 years: Dover FCU will give you 5.5% APY for as little as $500. Amboy direct will give you 5.45% APY, with a minimum of $25,000. Digital FCU is offering 5.39% APY for 12-23 months, for a minimum of $25,000.

1 year: Live Oak Bank is paying 5.40% APY for a minimum of $2,500. PenFed CU is offering 5.35% APY for a minimum of $1,000.
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txFish1
  |     |   476 posts since 2023
Like sams1985 said if you are not dead set on having all of your ladder at one institution USSFCU also has a 36-47 month jumbo CD paying 5.34% APY as of right now
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gratitudecd
  |     |   83 posts since 2022
Its not 47! I promise you I checked with 3 different CSR's @ USSFCU! 36-47 you have to pick only a 36 - If you provide a name and phone number of a person telling you this I would appreciate it!
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gratitudecd
  |     |   83 posts since 2022
I also just sent you a PM - thanks TxFish1 - 3 Different people CSR's told me that I can only pick 36 or 48 not anything in between. They seemed to think I was nuts.
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txFish1
  |     |   476 posts since 2023
gratitude I opened up a 36 month rate of 5.34% APY and got it for 47 months. Don't know what to tell you but I have actually done this 3 times with USSFCU over the years.
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gratitudecd
  |     |   83 posts since 2022
Hey txFish1 I had sent you a PM - I would love to do the same thing or a 42 month CD w/ them. Would you please see what I wrote you. Would be very appreciative of your help. In fact only reason I even considered them was b/c of your suggestion. Thanks!
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CDMD
  |     |   141 posts since 2022
I too just opened a 47 mo cd with the 36 month rate. See my post of reviews under USSFCU. Unless policy changed with new year
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JeffinEasternFL
  |     |   744 posts since 2020
For the sake of "what if" don't do it all with one bank! I suggest you use at least 3 different! (be sure they have a brick-and-mortar branch, somewhere in the USA - that is a retail branch!) . Credit unions are also fine! Go for FDIC/NCUA insurance first, then rates, then be sure they are physically located somewhere, preferably with a local phone number too! Use the search tool here and find those rates, they are gonna change at many banks today/tomorrow btw...You may also want to look at fixed deposits that aren't state taxed as well...
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Zemo999
  |     |   103 posts since 2017
One thing to consider, if you think you might need the money before maturity is the Early Withdrawal Penalty at each institution - e.g., Advantcial 5 yr 5.4% - 365 days EWP; United States Federal Credit Union 36 month jumbo ($200k) 5.34%: 180 days EWP; Prime Alliance 24 month 5.25% 90 Days EWP.
The other thing to consider is how competent the institution is. For instance, United States Senat FCU often has a 20 minute wait time for them to answer, and the reps, I've found, are pretty unknowledgeable, send the wrong documents, etc. Prime Alliance reps really know what they're doing, e.g., they 'get it' as to what's needed to include POD in the account and naming beneficiaries to create an informal trust that brings federal insurance above $250k. Many places arrogantly insist that just naming benficiaries creates such a trust, which is just plain dead wrong. 3 conditions as stipulated, for instance, on Pg. 35 of NCUA's booklet on trust insurance must be satisfied. It's amazing to me how few institutions know this important information.
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acadapter
  |     |   296 posts since 2018
I've thought about opening a CD account with Crescent, have never heard of them until recently.
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choosefi
  |     |   37 posts since 2017
I appreciate all the responses, I ended up opening up CD's with Prime Alliance Bank with
1y. 5.27%
2y. 5.27%
3y. 4.96%

I also applied yesterday at First national Bank of America, and the applications went pending that I'm waiting on, I did ask first if i needed to thaw my credit report by 2 different CS and they said no, but I'm guessing that caused it to go pending, or because I just opened up an account with Prime Alliance that already showed up on my ChexSystems.
4y. 4.80%
5y. 4.75%
6y. 4.60%
7y. 4.55%

It sure would have been great to have them all with Vanguard, but those broker rates definitely fall first, seems they rather get you as a customer directly to upsell.
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txFish1
  |     |   476 posts since 2023
trailspeed If the First National Bank of America is the one out of Lansing MI they are actually a pretty good bank. Years ago the company I worked for was owned by a company out of E Lansing MI and we had an account with them and they always had above average deposit rates and good customer service. As far as the Broker sold CD's go yes they do fall first and this time really quick as the best 5 year rate I saw as of yesterday at Fidelity was about 3.85%
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choosefi
  |     |   37 posts since 2017
Yep, that's them, good to hear FNBA is easy bank to deal with. I tried to sift threw the DA reviews to find decent banks.
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NYCDoug
  |     |   334 posts since 2011
Also realize that Brokered CDs (through Vanguard, Fidelity, et al) are NOT compounding your interest; they pay it off to you every six months, or whenever.

So you get a bigger bang for your buck — a significantly higher return — through bank or credit union certificates. And the longer the term, the better . . .

"Compound interest the eighth wonder of the world" [Einstein]
https://www.clearwealthasset.com/einsteins-8th-wonder-of-the-world/
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Steve58
  |     |   459 posts since 2018
If not to late, I would consider Advancial FCU (APYs for $50K minimum) for the 3 year (5.06%), 4 year (5.20%), 5 year (5.40%). Rates are good till the end of the month based on past experience. You can qualify regardless of where you live, but it does not show up under DA list for nationwide.

Steve
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