Savings/investments/bonds Master Thread.

[sam2015]

Nice rates. Make sure they are CP (call protected).

They are, which is interesting. I think the banks now are under pressure to raise their rates so that depositors don’t leave them to buy treasuries.

[CountValentine]

They are, which is interesting. I think the banks now are under pressure to raise their rates so that depositors don’t leave them to buy treasuries.

Have you checked the banks site directly and see if they offer the same rate? They know with brokerage CD's they are in direct competition with T-bills.

[sam2015]

Have you checked the banks site directly and see if they offer the same rate? They know with brokerage CD's they are in direct competition with T-bills.

Correct, these rates are not being offered directly from the bank website.

[ExGingi]

Nice rates. Make sure they are CP (call protected).

Offerings constantly changing. Was looking at Fidelity. Saw a 1yr CD at 5.40%. I was too slow to act, and by the time I hit submit on my order there were no more available.

See below how the available quantity on the top-yielding offerings is low. As soon as something higher becomes available it is snatched.

[aygart]

They are, which is interesting. I think the banks now are under pressure to raise their rates so that depositors don’t leave them to buy treasuries.

The flip side is that this leaves them paying higher rates than they can get in some cases.

[CountValentine]

Offerings constantly changing. Was looking at Fidelity. Saw a 1yr CD at 5.40%. I was too slow to act, and by the time I hit submit on my order there were no more available.

See below how the available quantity on the top-yielding offerings is low. As soon as something higher becomes available it is snatched.

Changes by the minute. 

[Essen est zich]

His main point is to keep it simple 1 resist the urge to buy or sell based on short term market or econ predictions (no one has a clue).
+ buy bonds
+ keep allocations simple
and other points

[Essen est zich]

Opened up a Fidelity account, now I gotta figure out the T-Bill business.
Is there any quick guide which help me pretend to know what I'm doing?

Can you share you're steps? Im debating whether to go with fidelity or shwabb

[CountValentine]

Can you share you're steps? Im debating whether to go with fidelity or shwabb

Unless I am doing something wrong there is a major drawback to Schwab. Your core account can't be a money market account. So, when I buy something I need to sell shares in my MM account to cover it. Then when I sell something, proceeds go into my cash account. I then need to buy shares with the proceeds for my MM account.

With Fidelity my core account is my MM market account. So, no need for this extra work.

[ExGingi]

Unless I am doing something wrong there is a major drawback to Schwab. Your core account can't be a money market account. So, when I buy something I need to sell shares in my MM account to cover it. Then when I sell something, proceeds go into my cash account. I then need to buy shares with the proceeds for my MM account.

With Fidelity my core account is my MM market account. So, no need for this extra work.

Correct.

However, I found available fixed rates to be slightly better on Schwab. It's just another order to buy or sell. And Schwab MM has a higher yield than Fidelity MM.

[CountValentine]

Correct.

However, I found available fixed rates to be slightly better on Schwab. It's just another order to buy or sell. And Schwab MM has a higher yield than Fidelity MM.

You have to remember to buy/sell. Don't you also lose a day's interest each time you have to buy/sell?

[ExGingi]

You have to remember to buy/sell. Don't you also lose a day's interest each time you have to buy/sell?

I just did this yesterday. Bought a CD, got a notice that there is insufficient cash and that I must deposit or sell something else to cover before settlement date. So I right away put a sell order on the MM to satisfy.

[CountValentine]

I just did this yesterday. Bought a CD, got a notice that there is insufficient cash and that I must deposit or sell something else to cover before settlement date. So I right away put a sell order on the MM to satisfy.

This is what I am asking. Say settlement date is Friday. When do you need to sell your MM so funds will be available for Friday? Can you sell your MM on Friday, or does it need to be sold on Thursday?

[Yo ssi]

Can you share you're steps? Im debating whether to go with fidelity or shwabb

It's in the following posts
Credits to @CountValentine

[ExGingi]

This is what I am asking. Say settlement date is Friday. When do you need to sell your MM so funds will be available for Friday? Can you sell your MM on Friday, or does it need to be sold on Thursday?

I just did both trades the same day. But I guess you can PUTPAC to find out. I did the trades in an IRA, so less flexibility (no margin, and no ability to just add cash from elsewhere).

[CountValentine]

With Schwab I buy a CD/T-bill on Monday and sell the same amount of MM to cover the purchase that day.
With Fidelity I buy a CD/T-bill on Monday and on Thursday (settlement day) it automatically sells my MM shares to cover the purchase.
With Schwab I am losing three days of interest on my MM shares used for the purchase?

[zh cohen]

Was looking at Fidelity. Saw a 1yr CD at 5.40%.

They have 5.35% listed now

[CountValentine]

They have 5.35% listed now

They are going fast. 

[ExGingi]

They are going fast. 

IDK if it means anything, but two 5.4% CDs I bought this week are showing a value about 0.35% higher than invested. I am wondering if these have a secondary market just like Treasuries, and can be traded prior to maturity.

[CountValentine]

IDK if it means anything, but two 5.4% CDs I bought this week are showing a value about 0.35% higher than invested. I am wondering if these have a secondary market just like Treasuries, and can be traded prior to maturity.

Some CD's can be sold on the secondary market. Click on yours and see if you can sell it.