9 Month CD at 5.25% Thoughts?

January 13, 2023, 10:22 PM

Rey HRH

I get 4% interest on maximum $15,000 in my checking account as long as I deposit $3,000 every month and make a combined 30 transactions between my checking and visa credit card.

"It did not really matter what we expected from life, but rather what life expected from us. We needed to stop asking about the meaning of life, and instead to think of ourselves as those who were being questioned by life – daily and hourly. Our answer must consist not in talk and meditation, but in right action and in right conduct. Life ultimately means taking the responsibility to find the right answer to its problems and to fulfill the tasks which it constantly sets for each individual." Viktor Frankl, Man's Search for Meaning, 1946.

January 14, 2023, 12:11 AM

2PAK

quote:
Just gotta point something out that everyone keeps missing... 5.25% APR for 9 months is a 3.9375% return ($393.75) over 9 months, not a $525 return.

Thanks for pointing this out. Most of us know it but it's a good reminder or primer for folks considering actual returns.

January 15, 2023, 06:11 AM

frayedends

quote:
Originally posted by iron chef:
I took my mother to open a CD a few weeks ago. The rate on a 12-month CD was 4.80% APR/4.91% APY, and she was thrilled w/ that.

old rugged cross, what is the name of this CU offering 5.25%, and what are their membership eligibility requirements?

quote:
Originally posted by frayedends:
quote:
Originally posted by BigSwede:
What kind of money are we talking about here?

What would one earn on say $10,000 at 5.25% for 12 months?

I’m no math whiz but $525.

If you're talking Annual Percentage Yield, then that's correct.

quote:
OP: 5.25% 9 months fixed on $10k = $5,250 for 9 months.

apprentice, double check your math.

My math is correct. CD rates are based on APY. The number of months is the minimum you need to hold it to earn that interest yield.

January 15, 2023, 06:55 AM

wcb6092

The National Credit Union Administration is a US government agency that regulates and supervises credit unions. If your Credit Union participates it is covered with Federal insurance similar to FDIC. So the risk is basically the same.

What Is the Difference Between the FDIC and the NCUA?

https://www.experian.com/blogs...perian/fdic-vs-ncua/

When you open an account with a bank insured by the Federal Deposit Insurance Corporation (FDIC) or a credit union insured by the National Credit Union Administration (NCUA), you can feel confident your money is protected up to a certain amount. Both the FDIC and NCUA provide government-backed insurance for financial institutions; however, the FDIC insures bank deposits while the NCUA insures credit union deposits.