Anybody ever have a Capital One CD? They're offering a 1-year 4% CD that I'm thinking about going for. Possibly the 2-year.

CobraBob

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I've been watching the CD interest rates climb and I'm interested in moving a BIG chuck from my bank money market into a 1-year or 2-year Capital One CD. The 1-year rate is 4% and the 2-year rate is 4.1%. The 5-year is 4.25%. I've never done a CD other than with my local bank, but they're only offering a .40% on a 1-year CD and .45% on a 2-year CD. Their 5-year is only 1%! No thanks. But this Capital One CD is very good, interest wise.

Any concerns or cautions?

Sallie Mae is offering a 2.5-year CD yielding 4.45%.
 

Blackoyote

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There are HYS that are close to that and you don't have to oblige it for a year...I think my Discover high interest savings is near 3...if it's not it will be in another week or two. I get 1-2 emails per week from Discover and AMEX that my rates are going up.
 

Detroit Iron

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I don't think I would lock my money up for an extended period of time for minimal gain. You can get a schwab money market account (SWVXX) that pays 3.5% and will go higher as the fed keeps raising rates. Being liquid may be very beneficial in the next year or two.
 

jshen

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I don't think I'll move to CDs-yet- as when mine came due from Ally, I moved to Vio. Bank and they pay 3.58%. Liquidity in this market is safer for me. I would not go for anything longer than 12 month CD
 

rborden

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I've been watching the CD interest rates climb and I'm interested in moving a BIG chuck from my bank money market into a 1-year or 2-year Capital One CD. The 1-year rate is 4% and the 2-year rate is 4.1%. The 5-year is 4.25%. I've never done a CD other than with my local bank, but they're only offering a .40% on a 1-year CD and .45% on a 2-year CD. Their 5-year is only 1%! No thanks. But this Capital One CD is very good, interest wise.

Any concerns or cautions?

Sallie Mae is offering a 2.5-year CD yielding 4.45%.
Bob,

You’re better off investing in mutual funds right now. Buy low (now) sell high (later).

Don’t look at the current 5 and 10 year trends, look at the 80 year historical trends. You can clean up nice in the next 10-15 years.
 

GOTSVT?

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I don’t know how much you are planning on depositing?
With that being said, there are some nice buys in the market right now.
Find a solid paying dividend stock, and park your money there for 2 years. I think there will be some solid gains on a couple REITs in the next few months as the real estate market continues to decline.
 

CobraBob

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Thanks everyone for your replies. I get it on the advice to keep my money liquid. At my age (73), that's important. I'm still working full time, but I expect that I'll (finally) retire in 3-5 years. A Discover HYS is now yielding 3.0%.

I-Bonds are at 9.62%. The November-April 2023 rate hasn't been announced. But, there is a max amount you can buy. $10,000 in electronic EE bonds. $10,000 in electronic I bonds. $5,000 in paper I bonds.

I'm looking to invest a minimum of $50K, and up to $100K. And I don't want to risk any losses in my $145K liquid funds at present.
 

DSG2003Mach1

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Thanks everyone for your replies. I get it on the advice to keep my money liquid. At my age (73), that's important. I'm still working full time, but I expect that I'll (finally) retire in 3-5 years. A Discover HYS is now yielding 3.0%.

I-Bonds are at 9.62%. The November-April 2023 rate hasn't been announced. But, there is a max amount you can buy. $10,000 in electronic EE bonds. $10,000 in electronic I bonds. $5,000 in paper I bonds.

I'm looking to invest a minimum of $50K, and up to $100K. And I don't want to risk any losses in my $145K liquid funds at present.

Bob do you have a finance guy you can talk to? Some shorter term municipal bonds may be good option as well, especially depending on your tax bracket. Muni bond dividends are tax free.
 

Detroit Iron

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@CobraBob, the new ibond rate thru end of April is 6.89%. The May rate will be MUCH lower, likely lower than a money market account. One of the big ibond rate calculation contributor is the 6 month change in CPI. Inflation is going down, this will makes future ibond rates much lower.

As I mentioned before in my previous post, the Schwab money market account (SWVXX) now pays 3.7% and will go up as the Fed raises rates. I have all my liquid money in there, there are no minimums, no buying fee, you can transfer money in and out electronically whenever you please. Fidelity has a similar money market account (SPRXX) that pays very similar. I would look into something like this if you want to stay liquid, no risk and get a "decent" return.
 

DSG2003Mach1

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@CobraBob, the new ibond rate thru end of April is 6.89%. The May rate will be MUCH lower, likely lower than a money market account. One of the big ibond rate calculation contributor is the 6 month change in CPI. Inflation is going down, this will makes future ibond rates much lower.

As I mentioned before in my previous post, the Schwab money market account (SWVXX) now pays 3.7% and will go up as the Fed raises rates. I have all my liquid money in there, there are no minimums, no buying fee, you can transfer money in and out electronically whenever you please. Fidelity has a similar money market account (SPRXX) that pays very similar. I would look into something like this if you want to stay liquid, no risk and get a "decent" return.

I've already got an account with Schwab, will definitely be looking into this vs my worthless MM at the credit union.
 

CobraBob

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Bob do you have a finance guy you can talk to? Some shorter term municipal bonds may be good option as well, especially depending on your tax bracket. Muni bond dividends are tax free.
Yes, I do, but I'd prefer to do this myself. Sometimes I trust the advice from some of those here who have practical personal experience in shorter term (liquid) investments. I will look into municipal bonds.

Bob,

I would seriously consider putting it in Bitcoin…
Thanks, but I'm after "no risk".

@CobraBob, the new ibond rate thru end of April is 6.89%. The May rate will be MUCH lower, likely lower than a money market account. One of the big ibond rate calculation contributor is the 6 month change in CPI. Inflation is going down, this will makes future ibond rates much lower.

As I mentioned before in my previous post, the Schwab money market account (SWVXX) now pays 3.7% and will go up as the Fed raises rates. I have all my liquid money in there, there are no minimums, no buying fee, you can transfer money in and out electronically whenever you please. Fidelity has a similar money market account (SPRXX) that pays very similar. I would look into something like this if you want to stay liquid, no risk and get a "decent" return.
Thanks for that info! (y)

I really don't have a need to withdraw more than maybe $10K from my MM over the next 2-3 years. I'm liking that 6.89% iBond more than the 4.1% Capital One CD. I'm going to be busy this weekend.
 

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