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Response to Shemp Howard (Reply #14)

Wed Apr 29, 2020, 05:49 PM

24. What bank is paying just 0.10% on CD's? My credit union, which definitely doesn't

have the best rates, because it has brick and mortar branches, has rates of (APY)
91 day: 0.60%
1y: 1.10%
2y: 1.35%
4y: 1.65%
5y: 1.90%.

Also check out bankrate.com
2y: 1.75%
4y: 1.75%
5y: 1.80%

(I'm shocked that bankrate.com doesn't have much better rates than my credit union, it usually does).

Here's another showing 1y, 3y, and 5y for 10 banks in a table for easier comparison:

https://www.nerdwallet.com/best/banking/cd-rates

However, I entirely agree with your point that there's nowhere to go. These are miserable rates (the yield on the S&P 500 is better for example, and stock dividends rise over time rather than being fixed, and of course the endless historic record of stock capital gains). But I post this just because I don't want people to overlook FDIC- or NCUA-insured CD's for the part of their portfolio they feel should be in fixed income.

There are some who post about high P/E's and Shiller's CAPE ratio and Warren Buffett's market valuation / GDP ratio, both showing stocks considerably overvalued in aggregate compared to almost all of the past, but in my mind, leave out one crucial factor -- the one you mention -- rates on competing fixed income investments like bonds and CD's are about the lowest they've ever been. And just plain suck.

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at140 Apr 2020 OP
wryter2000 Apr 2020 #1
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LineLineNew Reply What bank is paying just 0.10% on CD's? My credit union, which definitely doesn't
progree Apr 2020 #24
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Voltaire2 Apr 2020 #19
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