NO penalty CDs, Marcu, Sallie Mae, Ally bank??

Discussion in 'Fixed Income' started by Crunchyknees60, Dec 28, 2023.

  1. HI all

    I was wondering if any of you guys have experience with Marcus by Goldman Sachs or Sallie Mae no penalty cds?? I currently have money at Ally Bank at 4.55%. Marcus no penalty cd s pay 4.70% and Sallie Mae 4.75%. The ratings for Ally is pretty bad its rated BBB-. However they have terrific customer service. I believe the rating for Sallie Mae is BB. I cant figure out Marcus. Its owned by goldman sachs and its hard to get rating on that bank. Marcus i believe guarantee same day transfers. I dont suppose any day trading outfits pay over 4.5% on cash balances?? Any other ways to get over 4% on cash balances with ez liquidity?

    Lets not bring up the FDIC. Everyone knows they dont have enough money to back all the money in the system.
     
  2. ZBZB

    ZBZB

  3. BKR88

    BKR88

    Fidelity auto-rolls free cash into SPAXX which yields 5%.

    Avi Gilburt regularly writes articles about some of the large banks.
    https://www.saferbankingresearch.com/articles/sa
    https://seekingalpha.com/article/4652541-are-you-preparing-for-another-banking-crisis-you-should-be

    He has a paid service where he lists his *safest* banks. I haven't seen the list.
    https://www.saferbankingresearch.com/methodology-banks/sa
     
    engineering and elite1974 like this.
  4. 1 month treasuries are about 5.5%.
    Why accept less? Plus that interest is tax advantaged.

    I don't get why people accept a higher risk for less return.
     
  5. CET

    CET

    Check out ETFs SGOV and BIL. Get short term rates and can enter and exit with ease.
     
    engineering likes this.
  6. Good point.
    sgov is about 4.8%.

    How is it that these bank are able to sell their CDs so cheaply? In a sane world that BBB- bank should be paying over 6%.