What I did this week CD and US Treasuries...

Discussion in 'Fixed Income' started by Cabin111, Oct 12, 2022.

  1. Cabin111

    Cabin111

    I had a CD mature on Saturday (during a 3 day weekend..Not good). Years ago, I would make sure CDs always matured on a business day!! The bank would use the float otherwise. The CD was for $250,000.+ interest.

    Was not getting much for my CDs...Was tried of going from one bank to another asking about rates.

    Took a cashiers check for the amount over to Schwab and deposited into my trust account.

    I picked up US Treasuries today (about 6)...Each between $25-50,000. They range from about 9 months to 18 months. I got between 4 to 4.4% on them. Also have kept about $30,000. dry powder, if something looks good in the market. Just me...
     
  2. schizo

    schizo

    I think you got in too soon. We could easily see the rates between 6% - 8% by next summer.
     
  3. Cabin111

    Cabin111

    Still have other CDs maturing over the next few months. Will try a little laddering with CDs and treasuries over the next 18 months...
     
  4. BKR88

    BKR88

    Easy rate comparison here.
    https://www.depositaccounts.com/cd/

    ***I've been laddering brokered CDs at Schwab/Fidelity. (1-6 months)
     
  5. tiddlywinks

    tiddlywinks

    CU (w/over 1M members) is offering 4% for 18/mths, with a "bump" feature that allows a one time rate increase, if rates become better. The bump is not automatic... must be initiated by customer. Since this is one of the first afaik to offer 4%, my guess is they won't be so quick to increase.

    IMO, this is a good offering for an emergency fund.

    Image 1.png
     
  6. Bad_Badness

    Bad_Badness

    CDs can be liquid. I have sold a lot of them before maturity. You just need a dealer willing to put out bid request.

    Does Schwab do that?
     
  7. Cabin111

    Cabin111

    Yes...
     
    Bad_Badness likes this.
  8. mervyn

    mervyn

    I buy CDs at Fidelity, they seem to have more products. I do 3 months roll but I’d rather buy short dated corporate bonds or SPXL.