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SV
SV (@guest_1822810)
March 29, 2024 22:01

Elements Financial 8 month CD is now 5.05 APY. I called to see if there was any other specials and the answer was not at this time.

SV
SV (@guest_1822808)
March 29, 2024 21:58

Looks like Legacy Bank and Trust has a 6 month CD at 5.65. I haven’t called them yet nor do I know anything about the bank. It is located in several states.

JasonTX 🔗
JasonTX 🔗 (@guest_1822628)
March 29, 2024 17:31

I saw a lot of chatters here mentioning Canvas Annuity….a lot of the posters seem like the sale reps from the company pretending to be DOC users. In the brochure for their annuity, it has a disclaimer “Interest rates as stated are effective as of October 13, 2023. interest rates are subject to change at the sole discretion of Puritan Life”…

Better make sure you know what you are getting yourself into before committing to a large sum of money. Someone on Trustpilot mentioned there is a 7% penalty to withdraw early.

Also, DO NOT trust the reviews on trustpilot. I used to work for a company that pays them $20k a month so they can remove all the negative reviews.

TyrannicalDuncery
TyrannicalDuncery (@guest_1822649)
March 29, 2024 17:54

Good points. Personally I’m not too concerned about the rates or the potential shadiness of the company, although I’m not saying you shouldn’t be.

What concerns me is risk of loss. If I understand correctly (let me know if I’m wrong), these usually (not always) do not have FDIC/NCUA/SIPC protection, and are instead protected by state guaranty funds which may be less bulletproof (no money printer) but may have higher (or lower) coverage amounts.

That’s what always steered me to CDs instead but I could totally be wrong. Let me know if you want.

But now you got me looking at them again. Just doing a quick search for a few states, it seems like the returns tend to beat CDs after 2 or 3 years but slightly lose for shorter holding periods; does that sound right to you? I’ve only ever looked at MYGAs as I’ve assumed (without checking) that this will get me the highest fixed rate for shortish holding periods.

Karl
Karl (@guest_1822794)
March 29, 2024 21:27

CDs look better to me for anything under 3 years, and treasuries equal or beat CDs up to 3-4 months.

For tax purposes, the canvas annuities mentioned here are more like CDs held within your IRA.

Unless you will be under 59 when the annuity matures. If so you’d have to renew it at an unknown interest rate. Canvas guarantees a 3% minimum FWIW, but if you’re under 52 you can’t just use it as a CD.

CF Frost
CF Frost (@guest_1822704)
March 29, 2024 19:04

Annuity is just a dirty word – it has a time and place in someone’s life – and it’s so limited to when an annuity is actual a “good” financial decision. 95% of the time, an annuity is the WRONG answer to anyone’s financial plan. Look at all the up-front-costs that go straight into the pocket of the seller – it’s an insurance “product” – plain and simple…with the fee’s to go along with it.

When ever I see someone touting the word annuity as a good thing, I reach for my pocket and make sure my wallet is still there!

CF Frost
CF Frost (@guest_1822841)
March 29, 2024 23:22
PaulinTexas
PaulinTexas (@guest_1822735)
March 29, 2024 19:55

JasonTX 🔗 So, I see you’re a relatively new poster on this site. I thought it a little funny that you reference Trustpilot in one breath and then say don’t trust it in the next. Unfortunately, the information you provided is inaccurate & misleading.

“…interest rates are subject to change…” until you purchase the Canvas Annity, then the rate is locked. It’s called a MYGA because the rate is guaranteed for multiple years. Your Trustpilot reference to a 7% penalty is wrong, it’s worse!
The range in the brochure is 9%-5% (Years 1 – 5). Didn’t you see that when you read it? However, that’s only if you withdraw more than10% a year & even then there is a list of exceptions.

So, yes, Kudos for warning everyone to be cautious. You know, look before you leap. Everyone should do their own due diligence to make sure they understand the pros/cons and if it right for them & their circumstances.

With that in mind, I wrote the post below to explain why I purchased the 5-year Canvas Annuity. It contains information someone would need to help them decide if an annuity is a good choice for them. I always thought “annuity” was a dirty word until I did my own research.

https://www.doctorofcredit.com/high-interest-savings-to-get/#comment-1781201

Karl
Karl (@guest_1822777)
March 29, 2024 20:58

“…pretending to be DOC users”

LOL. The comment you appear to be suspicious of,
https://www.doctorofcredit.com/high-interest-savings-to-get/#comment-1781201, was written by PaulinTexas.

Comment author information for PaulinTexas:
451 comments and 624 upvotes.

Comment author information for you, posting as JasonTX:
29 comments and 18 upvotes.

PaulinTexas obviously did a lot of research before posting his comment. It all checks out.

Your comment contains only disinformation.

You wrote, “Interest rates as stated are effective as of October 13, 2023. interest rates are subject to change at the sole discretion of Puritan Life”… which you deliberately took out of context.

The interest rates are only subject to change before you sign the contract.

The relevant term is:
“The Initial Interest Rate begins on the Contract Date and applies for the Initial Interest Rate Guarantee Period”

The Rate Guarantee Period is 3/5/7 years from when you buy the annuity.

You also wrote, “Someone on Trustpilot mentioned there is a 7% penalty to withdraw early”
And, “DO NOT trust the reviews on trustpilot.”

Have you considered taking your own advice?

The actual terms allow free early withdrawal of up to 10% per year. Exactly what PaulinTexas wrote.

IOW, if you read the T&Cs this is equivalent to a CD if and only if you will be at least 59 when it matures.

If you’re 52 or over it’s way better than any available 3-5 year CD.

KubKadet
KubKadet (@guest_1822460)
March 29, 2024 14:38

Thanks for answers below on deploying my moms house sale proceeds. A follow up. As I am a trustee on her trust, can I open up accounts for her in the name of her trust without her participation? THe issue is she is not all there and to set up the kind of multiple accoutns I am envisioning would be a pain, but if you cant you cant

Grateful
Grateful (@guest_1820756)
March 27, 2024 15:44

Bluevine has 4.25% APY on premiere business checking https://www.bluevine.com/business-checking/premier.

TAB Bank – 3.50% money market is now 4.00% APY.

Andy Prosseda
Andy Prosseda (@guest_1821234)
March 28, 2024 07:18

There is a $95 monthly fee unless you keep at least 100K in the account AND spend at least $5000 on the Bluevine debit card.
This might make sense if you have several hundred thousand to put in a checking account, otherwise no.

Grateful
Grateful (@guest_1821319)
March 28, 2024 09:38

Also,
On the Bluevine premiere, it earns on up to $3million and also FDIC insured to that amount through their sweep program banks.

On TAB, this is the business MM and earns 4.00% on first $1,000,000 and then .25% on remaining, but only insured up to the usual $250K.

KubKadet
KubKadet (@guest_1820628)
March 27, 2024 12:27

My elderly mom just netted 300K from sale of home. She is currently in independent living which isnt so costly but at some point will have to enter assisted living and more costly options

I have ideas of how to best deploy the cash in terms of CD lengths, etc. but thought I would ask opinions here on terms and best places

KubKadet
KubKadet (@guest_1820673)
March 27, 2024 13:17

a follow up? Any insights about the Farmers Insurance CU CDs. The good thing about that is there are shared CUs in our area you can actually go into as my mom is not good with online game

ntn
ntn (@guest_1820824)
March 27, 2024 17:48

I don’t know specifically about Farmers but have used shared CO-OP branches and discovered that there are limitations put into place, so I encourage you to look into it more closely.

In my case, I needed 2k in cash, and the shared branch I went into has an upper limit of 1k cash withdrawal per day per person. I wasn’t able to withdraw from a different CU either.

Gadget - Bank Bonus Geek 🔗
Gadget - Bank Bonus Geek 🔗 (@guest_1820739)
March 27, 2024 15:14

I’d probably do a CD ladder… various lengths of CD’s at $25K or $50K each. That way you have one maturing at least every 6 months if the need arises. And FDIC limit is $250K, so you would want at least two institutions. No Penalty CD’s exist too, where you can withdraw at any time without a penalty, but usually not at the best rates.

Most credit unions participate in “shared branching”, so you can access a remote credit union that way as long as the CD money is moved to a Checking or Savings. Someone not used to the “online game” can still call banks/CU’s too.

Best places: wherever they feel comfortable with.

CF Frost
CF Frost (@guest_1820784)
March 27, 2024 16:21

I would think you would want to also talk with an attorney who handles aging parents and how to best cover their assets so that Medicare / some assisted living place does not take all of her assets, especially if in her name, if you want Medicare to help cover her later expenses. Things like trusts, etc… I’m not too familiar in this area, but I know that we must have some people who can chime in on that.

Andy Prosseda
Andy Prosseda (@guest_1821240)
March 28, 2024 07:26

We got an irrevocable trust for my father with my brother and I as trustees. The purpose was to get all the assets out of his name so that in case he went into a nursing home, they couldn’t take his assets – which at the time included several properties.

At that time, the ‘look-back’ was 5 years, meaning that after 5 years all that money would be officially out of your mother’s name and they couldn’t come after any of ‘her’ assets, which after 5 years would be offically yours.

Obviously there has to be a lot of trust in your family, but it is a smart, safe way from keeping them from taking it all should tragedy happen.

Karl
Karl (@guest_1820877)
March 27, 2024 19:26

She should look into this!

It’s the equivalent of a 3-year 6%, 5-year 6.25%, or 7-year 6.05% CD.

Early withdrawal of up to 10% per year with no penalty if you’re over 59.

You have to be over 59 at redemption which I assume she is.

Most states insure this up to $250k but check hers to be sure.

https://www.doctorofcredit.com/high-interest-savings-to-get/#comment-1781201

Andy Prosseda
Andy Prosseda (@guest_1821237)
March 28, 2024 07:22

Yes, Canvas Annuity is a great place to park at least half of her money. I got a 5-year in December (at 6.50%) and it’s been smooth sailing so far.
Relatively easy to open, they update the interest almost every day on their site, and when I signed up they back-dated my interest for the week+ that my money wasn’t officially in the annuity.

Ty K.
Ty K. (@guest_1820549)
March 27, 2024 09:47

Egg prices up 22% since January.
Gas prices up 17% since January.
Homeowners insurance up 32% within last 12 months.
Auto insurance up 40% within last 12 months.

Time to cut interest rates.
Really?

Andy Prosseda
Andy Prosseda (@guest_1821241)
March 28, 2024 07:29

Impossible! I just heard Biden’s press secretary say that Bidenomics was working for all Americans to lower prices.
Are you suggesting that we can’t always believe everything that comes out of the mouth of a President’s press secretary?? Balderdash I say!

Jon
Jon (@guest_1820143)
March 26, 2024 17:30

Many rates have changed. Andrews CU and NASA CU For example.List needs an update.

TyrannicalDuncery
TyrannicalDuncery (@guest_1820030)
March 26, 2024 14:10

I see people quoting their Chex history pretty often in the format like 9/12.

Does that refer to number of inquiries or number of unique institutions? I have a few banks that hit me with multiple hard inquiries, lol.

Regardless, is it known whether repeat inquiries with the same bank are generally seen as better than inquiries with new institutions? I’m hoping so, since there is a Chex score code that says something like “insufficient activity same FI” or something like that.

Gadget - Bank Bonus Geek 🔗
Gadget - Bank Bonus Geek 🔗 (@guest_1820042)
March 26, 2024 14:27

Number of inquiries, not unique, is what I would think most people are doing. In theory, yeah, maybe having multiple from a single bank could help your Chex score, but I certainly wouldn’t try it just to find out. Typically I dispute all duplicates. Sometimes it works, sometimes it doesn’t. TyrannicalDuncery

Rasheed
Rasheed (@guest_1819452)
March 25, 2024 12:53

Intuit is expanding their use of HYS offerings. Credit Karma is still at 5.1 APY which had been in the low 4s for most of the past year. I still believe it is tied to tax time promos., but that is not stated anywhere.

Now Intuit is offering QuickBooks customers a business savings at 5.0 APY. Heavy media ads also out there, so it should stick around for a few months. (https://quickbooks.intuit.com/get-money/). It is using a similar multi-bank system as Credit Karma, but GreenDot is more prominent.