I’m going to wait a bit on my full May interest rate update, as I expect more rate changes early this week. Even the rates quoted below may become outdated quickly, but I wanted to point out certain rates at multi-year highs and also near the psychological 3% level. Here are a few examples as of 5/1/22:
- Brokered CD rates: 3.05% APY for 5-year CDat Vanguard and Fidelity fixed income desks (non-callable, Capital One and Goldman).
- Credit union CD rate: 3.03% APY for 5-year certificate at Department Of Commerce Federal Credit Union.
- US Treasury Bonds: 2.97% yield to maturity at 5 years length, secondary market.
- Fixed Annuity: 3.65% rate on 5-year MYGA from The Standard (A Rating) on 5/2/22 via Blueprint Income. Possibly as high as 3.85% with $100,000 at Stan the Annuity Man (varies by state). Learn more about MYGAs here and here.
I have no idea where rates will go from here. They may go much higher. 🤷 I haven’t decided when to lock in something, but I’m definitely paying attention.
A calculator such as this one (https://www.depositaccounts.com/tools/break-cd-calculator.aspx) is useful to decide if it makes sense to break a CD and pay the penalty in order to lock in a new higher rate. It helps me with FOMO of a much better rate.
How are brokered CDs different from CDs from your neighborhood (or national) bank or credit union – specifically for early withdrawals, are they just a predetermined number of days interest or more difficult?
How long does it typically take to see rates bump up? I guess i am trained from how fast gas prices go up (eye roll). I thought some of the sites like Smarty Pig would jump at attracting new investors. Drooling for more than .7%…
Department Of Commerce Federal Credit Union had lowered the rates now, 2.93%