Community Chat

[kivah]

I have a 4-year CD with Ally Bank, maturing June, 2019. It's where I have the option of getting a higher interest rate - twice - during this period - if the interest rate increases. I forgot all about it until yesterday - and called the bank and now the interest on my CD went from 1.44% to 2.32%.

So - if ur with Ally Bank - or other banks - and have this option, call or email them.

[Nightowlz]

Our credit union has 2.60% on a 42 month CD.

They also have a 17 month CD at 1.35%.

We get 1.50% monthly on our checking account on up to a $30,000 balance.

Not much but better than any other checking account I have seen.

[151949]

I would not place money in a CD with the low interest rates now. We have 85% of our savings in municipal bonds , getting a fairly good growth rate and 15% in the stock market so we get better growth there - hopefully. At least if we lose everything in the stock market - we can afford that.

[millieshops]

@151949What works for one person (family) may be inappropriate for someone else which is why when I deal with a financial advisor, I run from someone who tells me what to do with knowing my whole financial picture.

I've never heard that CD's are a poor placement for funds needed within a few years where the goal is protection of principal rather than long-term growth.  And an extra % is always good! 

[gidgetgh]

We just put some money in a cd at a local bank last Friday. 13 months, 2.30%.  They were running a special. 

We moved money from a “pays next to nothing” money market to the cd. 

I’m happy with 2.30% for 13 months. FDIC insured. No risk. 

We have another cd maturing near the end of this month. I’m going to renew it, but will be looking for better terms. It was in an 11 month cd for 1.00%. I’ll be able to get better than that now. 

I’ve given some thought to dabbling in the stock market but I just don’t feel comfortable doing it right now. Maybe down the road. 

[151949]

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@gidgetgh wrote:

We just put some money in a cd at a local bank last Friday. 13 months, 2.30%.  They were running a special. 

We moved money from a “pays next to nothing” money market to the cd. 

I’m happy with 2.30% for 13 months. FDIC insured. No risk. 

We have another cd maturing near the end of this month. I’m going to renew it, but will be looking for better terms. It was in an 11 month cd for 1.00%. I’ll be able to get better than that now. 

I’ve given some thought to dabbling in the stock market but I just don’t feel comfortable doing it right now. Maybe down the road. 

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Municipal bonds are much safer than the stock market. The yield is lower but your money is safer. Say a town wants to build a sports complex - they float a bond - in other words they borrow money from many people at a certain interest rate, & pay it back like any loan. As the bond makes money - you make money. Your money is as safe as that town's government because that is who borrowed it.

[gidgetgh]

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@151949 wrote:

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@gidgetgh wrote:

We just put some money in a cd at a local bank last Friday. 13 months, 2.30%.  They were running a special. 

We moved money from a “pays next to nothing” money market to the cd. 

I’m happy with 2.30% for 13 months. FDIC insured. No risk. 

We have another cd maturing near the end of this month. I’m going to renew it, but will be looking for better terms. It was in an 11 month cd for 1.00%. I’ll be able to get better than that now. 

I’ve given some thought to dabbling in the stock market but I just don’t feel comfortable doing it right now. Maybe down the road. 

---

Municipal bonds are much safer than the stock market. The yield is lower but your money is safer. Say a town wants to build a sports complex - they float a bond - in other words they borrow money from many people at a certain interest rate, & pay it back like any loan. As the bond makes money - you make money. Your money is as safe as that town's government because that is who borrowed it.

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@151949- I appreciate the info. I’m much more familiar with the stock market and how all that works, so that’s probably what I’ll do whenever the time comes. I freely admit that I don’t understand bonds very well and if I don’t understand them, I’m hesitant to invest in them. 

[Snowpuppy]

8 cities and 28 municipal entities (utilities, public hospitals) have filed for bankruptcy since 2010.

Ally bank was rebranded from GMAC Financial after GM filed for bankruptcy. 

Just sayin'.

[FrostyBabe1]

January 2018 was the WORST month for muni's since 1981. While it's true that bonds are technically thought to be safer than stocks, the muni market, according to this article, remains "murky". Municipal entities can and do default on their debt, just like private companies. 

https://www.cnbc.com/2018/02/28/are-muni-bonds-still-a-safe-investment-bet.html

DON'T take or believe investment advice from strangers on a message board. Talk to a professional. I worked at the management level in institutional investing, and I would never, ever give advice in a forum like this. Ever. It's foolish, and if you don't have the appropriate registrations with the SEC, it's illegal. 

[BirkiLady]

@FrostyBabe1Some posters are authorities on every subject talked about on these boards. Just ask them anything; you'll get a determined answer. If you don't like the answer, you'll get an arguement! No proof or facts; Google is their source of reference!