Advertising Disclosure
  1. Home
  2. Community
  3. Miscellaneous
  4. Brokered CD's

Brokered CD's

Vernazza
  |     |   34 posts since 2022

FYI -

The 5%, non-callable, 5-year CD's go very fast on Fidelity. I found you need to check several times a day to catch them. When you do find one and refresh your screen you see the number drops very very quickly and usually gone in hours.

  Post a comment
5


RichardW
  |     |   821 posts since 2019
Vernazza…I noticed that American Express sold over $3,575,000 of their 5%, 5yr, new issue, non-callable brokered CDs at Fidelity in less than 35 minutes this afternoon. As of 4 PM EST today they are currently sold out. I’m glad to see American Express joined the 5%, 5yr, new issue, non-callable brokered CD group at Fidelity today. Previously I had only noticed Capital One and Discover in that group. Great to see a third financial institution in the mix. I wonder if we will soon see a financial institution in that CD group which isn’t a credit card company :)
Reply
5
sams1985
  |     |   781 posts since 2022
As of now at 1125pm, all 3 institutions have availability on Fidelity for 5 year non-callable 5% CD's. Discover, Amex & Cap One. Cap One has over 12,000 available.
Reply
3
w00d00w
  |     |   360 posts since 2012
the current demand for credit card borrowing seems like it's helping pull those brokered CDs to the top of the longer term pile
Reply
3
sams1985
  |     |   781 posts since 2022
I've been observing this as well. I'm wondering if this super strong demand will disincentivize banks from raising rates much beyond 5% even if the fed keeps raising the interest rate? Any thoughts?
Reply
5
RichardW
  |     |   821 posts since 2019
Why are we even considering these CDs which only yield 5% annually, when we can make 5.54% in one day with an S&P 500 index ETF? Just some entertaining 11/10/2022 stock market analysis…no need to answer :)
Reply
4
Kirkland
  |     |   377 posts since 2014
because we are retired and want to sleep well, and even with today's huge increase, we have lost 17.52% year to date in that S&P 500 index
Reply
7
GH1
  |     |   1,058 posts since 2017
And next week will lose 20 percent. Not gambling here as Kirkland said i like to sleep at night
Reply
4
111
  |     |   672 posts since 2019
Well, as I bet RichardW suspects at some level, one doesn't really put a statement like that out there without expecting at least SOME responses, right? :)

So... YTD my S&P500 index fund (SPY) looks somewhat like Kirkland's does - ugly. But to turn that frown upside down, I just move the starting point back 6 months to 6/30/21 - ROI is now -9%. Back another 6 months to 12/31/20 - now up 5.57%. Back to 12/31/19 - up 22.42% (includes the COVID recession, BTW). Etc., etc. - it just keeps getting better until you get back to early 2009, and even then it doesn't drop much. So how you sleep at night is, you diversify your over-time volatile moneymakers, against your more sedate non-volatiles (in my case mostly CDs instead of bonds, since 2018-early 2019). Sure you adjust the percentage of each at times depending on macroeconomic stuff, and age, but you never completely exit all stocks until you're really, really old.
Reply
4
RichardW
  |     |   821 posts since 2019
111…I like your diversified portfolio philosophy! I have been utilizing a similar approach with VFIAX.
Reply
3
MY2CENTSWORTH
  |     |   440 posts since 2016
111...what is "really, really old? While I appreciate your perspective I believe each individual financial situation differs and may have a little bit to do with net worth and their expenses as they pertain to their lifestyle.
Reply
1
sams1985
  |     |   781 posts since 2022
Not sure if this is true but the reason we're not seeing too many new issues CDs is because tomorrow is a bank holiday according to my Fidelity rep.
Reply
4


The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.