When are you all buying CDs/ I bonds? Now or are you waiting?

[QuarterMillionMan]

Next week I'll put some money into some treasury bills for 1 year at 3% and laddering up as rates continue to climb. I like the no state/local taxes as kork mentioned. Thanks disneysteve for calling attention to this. I have $150k sitting in cash on the side and need to put some of that money to work. I know I should be more invested but don't want to lose principal if recession hits and takes a bite out of it. Even brokerage CD's at 3% for 1 year sounds like a safe bet.

[QuarterMillionMan]

Testing the waters and bought $5000 in a 6-month Treasury bill w/a 2.913% yield to maturity (YTM).

[kork13]

For the crowd --- I assume that upon maturity, you're not able to roll a Treasury bond automatically into a new one (like bank CDs), but would need to go back in to select & purchase a new bond manually?

[QuarterMillionMan]

Good question Kork, I don't think so. Thinking back when I executed the purchase it didn't have a field or box to select to reinvest so I'm guessing it'll have to purchase a new treasury bill when it matures,

[disneysteve]

Good question Kork, I don't think so. Thinking back when I executed the purchase it didn't have a field or box to select to reinvest so I'm guessing it'll have to purchase a new treasury bill when it matures,

T bills can't really roll over in the same way as CDs can. You're buying on the secondary market so prices and maturity dates vary. Also, if you're building a ladder, you wouldn't want it to roll over anyway. For example, I might buy bills for 3, 6, 9, and 12 months and then each time one matures, use the funds to buy a new 12-month bill, not the same duration that it was already in.

[frugal saver]

I just moved some money from savings to a new CD at Alliant FCU for a 2.65% rate. My local credit union used to have high rates, but I had 3 CD's roll "during the bad times" and the rates were scary low. I just closed all three to move them and the total penalty for all three was $6. I'm going to wait and see if they raise rates again in September before I lock these into a new CD.

I've never looked at Treasury bills before--I only have I bonds. I'll have to take a look now.

[QuarterMillionMan]

My brokered CDs search criteria; under 1 year yielded about 5 pages of results. This is only 1 page. Chose JP Morgan Chase 9 month CD @ 2.95% with $5000. All CDs are Non-Callable (what ever that means). I'm guessing the issuing bank cannot recall the CD. Never heard of a bank recalling a CD but I guess it's a desperation move or a hail Mary for the bank if needed.

[QuarterMillionMan]

Available funds for trading $129,000. Way too much cash on the sidelines so later will be getting more US Treasury bills & brokered CDs. Thanks disneysteve for enlghtening me.

[QuarterMillionMan]

I stand corrected. The JP Morgan CD that I bought is callable, no biggie to me.

[disneysteve]

will be getting more US Treasury bills & brokered CDs. Thanks disneysteve for enlghtening me.

Happy to help. I just learned about both of those products myself earlier this year so I'm spreading the word.

My cousin's estate finally closed (the courts in Florida have been awful) and I'll be getting a check in a few days. I plan to put a good chunk of it into brokered CDs and Treasury bills as well as another chunk into the market to adjust our asset allocation which has drifted super conservative (although that has insulated us somewhat from the recent correction).

[plodding_investor]

I bought my first IBonds this year in May -- maxed out (for wife and self), then gifted the max for next year to get the current rates. Also purchased some Tbills and TIPS for the first time on the market, thanks to a how-to I read on another forum. I also have several CDs from a ladder I created several years ago. One expires next month, one next year then another in 2 years. I may cash in the 2-year CD early (penalty is 180 days interest), although the yield is still slightly higher than the Federal MM at Vanguard, so probably not worth it just yet to do so. It doesn't require a large sum of money to invest in these, fortunately -- just enough savings or EF to get a ladder going or for duration savings.

[Drake3287]

I've had CD's all my life and I'm currently more active in chasing these higher rates now. CD's are obviously only part of my overall financial strategy though and I've also purchased I Bonds along the way. And yes, I tend to be maybe too conservative with my investing but over my life time it's paid off well. Too many people over the years have told me not to invest in CD's. Fortunately I didn't listen to any of them. Like stocks, you'll always have highs and lows.

[scfr]

Since NASA FCU just raised their promo share certificate rates, we put some in a 9-month at 3.55%. We decided that wasn't a bad place to park it while we wait for (hopefully) higher rates on longer term CDs.

(FYI, we already "maxed" our IBonds early in the year, sort of. We have a joint account. We could change that to 2 separate accounts to increase our annual limit, but has been noted elsewhere making changes on TD accounts involves some rigorous hoop-jumping and the IBond limit is relatively low so for now we're just sticking with what we already have set up with them.)

[scfr]

Current thinking in my household is to wait to lock in longer term CDs until they hit 5%.

Just pulled the trigger on a 5-yr CD at 5% APY. Not a huge amount because I was unsuccessful in convincing DH to break a lower-earning CD to put in more even though the math makes sense. There's a chance rates will go up a bit more, but there's also the chance rates on long term CDs will decline, so it will do for now! Just feels like good timing to this long-time rate chaser.

[disneysteve]

Just pulled the trigger on a 5-yr CD at 5% APY.

Is that non-callable? Where did you find it?