Posted by Chuck on March 3, 2020
High-Yield APY Accounts

Published on March 3rd, 2020 | by Chuck

167

Fed Cuts Interest Rates By .5%, Lock In Savings Rate Now

The Federal Reserve announced today a lowering of the interest rates 50 basis points from 1.75% to 1.25%. Presumably this will precipitate a nice drop in rates on high yield savings accounts.

Could make sense to lock into a CD or a No-Penalty-CD now to avoid the rate decrease. There also might be a few options (like Elements Financial and Patriot Bank) who have guaranteed rates for a certain amount of time. Lock funds in now before they decrease.

For those unfamiliar, a no-penalty-CD is as good as an ordinary high-yield savings account, the only downside being that when you break it you have to break it entirely. Ally Bank offers a 1.90% no-penalty CD with a $25,000 minimum. You can open multiple no-penalty CD’s, and a lot of people like opening multiple CDs with $25,000 in each. That gets you the highest rate possible on a no-penalty CD, but still gives you flexibility of breaking each $25k without affecting the others. A similar thing might (?) work with Goldman/Marcus who offers a slightly higher rate of 2.00% on their no-penalty CD.

See our List of Best Savings Rates here.



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raekwon
raekwon

SoFi Money lowering their APY in 3… 2…

Matt
Matt

I hate the Fed.

Feel TheJimm
Feel TheJimm

The Fed is just following the Free market interest rates.

Abe Jjj
Abe Jjj

There is no free market in short term interest rates.

Wilson
Wilson

what about the Fed supplying the repo market? If banks had to pay the 8% market rate maybe they wouldn’t look at depositors as dead weight

John Adamson
John Adamson

If the banks had to pay the 8% market rate the modern economy would be dead.

scripta
scripta

The FED isn’t there to follow the market, it’s there to lead.

Mims
Mims

Um, which free market rates would those be? The rates that exist outside of government (and its arms) meddling? Where are those exactly besides one’s bookie? Banks respond to the Fed since the Fed essentially controls the overnight lending rate.

Bob
Bob

10 year Treasury does what it does. Nobody tells it what to do. Not even Jeff Gundlach. Another LuckBoxx.

One call to make a Billion 💵 is all God gives U.

Jeff
Jeff

You’ve got to be kidding me with this comment! Since when has the Fed been about “free market”? If anything, they have been doing exactly the opposite. The Fed is the reason we have recessions and bubbles of housing and equity.

John Adamson
John Adamson

That was true in the past when they raised rates to curb inflation but we are in a different boat where those interest rates can never go anywhere near as high as they used to. Mortgage applications dry up over 5%. So their rate adjustments aren’t having a huge effect on the downside or upside and causing boom or bust cycles. Maybe it will change but since 2008 this has been the case. We are permanently stuck in an under 3% gdp growth which means we don’t have the dot com or 2006-2007 bubbles and don’t have the huge downside. I agree what the fed does is not ideal but what’s the alternative? I’m more worried about the government pushing high taxes, excessive regulations and promoting an open borders policy that guarantees the above.

Jeff
Jeff

I don’t know why you are defending the Fed when they have clearly been messing up a system that would have worked perfectly without them. The alternative is simple: end the Fed. And practically speaking, we have an alternative now – Bitcoin – an asset that cannot be confiscated and debased. Our current financial system has been debasing our currency so much that purchasing power has significantly diminished. Don’t you see it?

Feel TheJimm
Feel TheJimm

U a right wing 😂😂😂😂💯% nutt job or what?

U forgot to add if Obamacare stays that’s 1%cost s year to gdp 4evrr.

Low growth n low interest rates 4ever.

Can u say Nihongo Wakaru…or in English Japan.

Feel TheJimm
Feel TheJimm

Off topic I know. Thomas Square park in HNL has erected a fence all around so Homeless can’t get in. Thing is No One use the park.
Hahahahaha.

Might as well build million dollar condos. That’s AAAplus land. Valuable as Gold.

No homeless dare to camp on State 😂😠😂😠😡😡 Capitol land nearby.

Kevbo Sampson
Kevbo Sampson

It’s a necessary evil

albert
albert

lol

Feel TheJimm
Feel TheJimm

Mortgage refinancers r rejoicing like 1999.

Shake
Shake

Damn you were so right..

Midnight
Midnight

They already lowered it 😂

Matt
Matt

Navy Fed 17 month special certificate. 2.25% up to 75k balance. Fairly attractive. Rates are only going lower….

Jethro Tuller
Jethro Tuller

I just did that today – lol.

Danno
Danno

Also, “Additional deposits are allowed at any time, subject to the maximum balance.” So one could open for $50 and be able to contribute more when they can. I just wish that I could put more into my 3.75% Roth IRA CD for the next two years 🙁

Feel TheJimm
Feel TheJimm

Not to long ago u could get 5 yr cd @ 3.5% … Obamacare is what killing the economy. The small man n girl just don’t have disposable income.

Celia
Celia

How is that? The economy has been on a roll for a decade, before and after the Affordable Care Act.

I still have the 2.25 at Wintrust until August. Hoping things will settle down. But not sure the Administration will be happy to let the Fed raise the rates back. Low rates will continue to be the future.

Bob
Bob

2% is considered a Roll Now…… Lol.
Obama growth 1.8%. Trump a smidgen higher.

😂 low rates are here to stay.

Celia
Celia

No comparison can be made IMO when you’re looking at one 8 year administration that started with a recession and a <4 year administration that came into an economy that had an average of 2.2% over the previous 4 years. Presidents love to claim credit but economy is cyclical.

Honestly, the comparisons between the current and recent presidents is getting old, again IMO.

Jeff
Jeff

You seemed to suggest that low rates are good?!

DK
DK

This is what I came here for, the real, hard science lol.

Mike B
Mike B

Gotta put up a new sign:

“It has been *zero* days since somebody blamed something completely random on Obamacare.”

Rob
Rob

I am sure you can afford that $3000 bill for Corona test kit as opposed to those poor folks on ACA, unless you plan on blaming the virus on ACA as well?

Feel TheJimm
Feel TheJimm

Actually problems with Kits are Obamas fault.

The Hot chick 😍 with 236.000 in student debt is Obama’s fault. He took over program to get people in debt. He then becomes their master.

Read the holy Bible.

GoPack
GoPack

This small man just don’t have a brain ^^^

Peter Lobl
Peter Lobl

us healthcare system is so efficient and without bloat, a paradigm for the people..

marcus
marcus

Did you mean to say “paragon” for the people?

Matt
Matt

I had just graduated and was denied healthcare coverage the year before Obamacare was passed… very stressful period in my life when I could have been completely screwed by a hospital bill. It’s better than what came before, but certainly not as good as other developed nations.

Zhi
Zhi

Feel TheJimm, I try not to get into politics here but your insinuation is baseless. So Obamacare is killing the economy but nothing wrong with our current president’s harmful and impulsive actions, right? He inherited an improving economy from Obama and has just been riding the wave

Feel TheJimm
Feel TheJimm

Name some harmful n impulsive actions.

Trump has been way to tame. Ex. He went limp on ChinaMans.

Kerry
Kerry

“Obamacare is what killing the economy” -Feel TheJimm

Nonsense. Please earn a real education and stop watching Fox News.

Joe Camel
Joe Camel

CNN dumbing down America for 40 years, luckily its ratings are tanking.

Cal Ripken Jr.
Cal Ripken Jr.

your dumb ass comments are lowering the IQ of people on this web site… go back to reddit troll

Dan
Dan

Obamacare… HUH?? Trump has literally been begging the feds to drop the rate every day, and you think Obamacare is to blame lmao

Gretchen Garbonski
Gretchen Garbonski

Obama could have had a roaRing economy if he wanted too. Instead he put Opharh Winfrey as the Jockey. Regulation after regulation to kill the middle class.

All Trump doing is unDoing Obama executive orders.

Feel TheJimm
Feel TheJimm

Communist pops begets communist son….lol. Don’t deceive yourselves Obama is every bit the CommiE Sanders is.

Cal Ripken Jr.
Cal Ripken Jr.

William Charles is there any way to block / ignore trolling clowns on this site? this guy just creates 50 new accounts each day.. and because us readers subscribe to a lot of posts.. our inboxes are filling up with troll junk everyday now.

Robin
Robin

Well put, Jr. To the censorship mobile!

SamL
SamL

Everybody, pay attention. “Feel TheJimm” and their dozens of aliases, is the forum’s resident troll, always spurting out random off the wall stuff, which people mostly have the sense to disregard. Moreover, it’s a troll with no political intuition, who is therefore incapable of plausibly mimicking any actual political ideology. Please don’t feed the troll with serious responses. You have to be astonishingly gullible to think this was an authentic critique of Obamacare.

Jack
Jack

Sort of sounds like you’re insulting those that tried to educate him by saying they don’t have sense or are gullible? Doesn’t sound like much of a difference there.

SamL
SamL

Trying to “educate” the troll IS feeding the troll. It was a very obvious troll post, and people fell for it hook line and sinker. This troll has been wrecking a lot of threads, and shouldn’t be given any action. I hate to respond, but they got so much action, that I really thought people should be alerted to pay attention.

Jack
Jack

Saying like you just did now is fine, it’s just that before you pretty much called those that maybe didn’t realize it was a troll gullible and senseless.

Don’t Feed the Troll
Don’t Feed the Troll

Thank you, SamL. You’re one of the better commenters on the site.

Feel TheJimm
Feel TheJimm

You are the man. The guy thinks u r all a bunch of deplorableS…….lol.

Feel TheJimm
Feel TheJimm

Dictator U R? You idolize ChairMan Mao?

People can think for themselves.

John J
John J

Its obamacare’s fault that coronavirus hit and impotus called it a hoax? you’re dumb as a rock.

ncsam
ncsam

Where do you see the 2% no-penalty CD for Marcus? I only see 1.9%.

EDWNY
EDWNY

I think it is 1.9. I just opened one and funded.

alex
alex

i see 2.05 for 12 / 18 months.

abhirup Chakraborty
abhirup Chakraborty

Ally says
“Your maturity date and APY will be determined once you fund your account”.
So even if I open today, funds will take sometime to deposit, so I cant lock in the rate right?

Kevbo Sampson
Kevbo Sampson

Ally has a 10-day best CD rate guarantee. If you fund the account within 10 days of open you are guaranteed the best rate theyve offered within those 10 days.

G
G

Yes, but from the date of “open”, not the rate one sees at “application”.

Kevbo Sampson
Kevbo Sampson

It took me a few minutes to “open” an account. The issue is always going to be in how long it takes to fund.

ap
ap

This happened to me with Discover – I tried to be sneaky and lock in a 2.50% 2 year with them right after a rate cut and my account was updated after the fact to a 2.35. I was livid and they basically told me I could take my money out for no penalty but they would not give me the rate – must be some weird regulations because I only had 5k in there so we’re talking like 14 bucks over two years

David
David

Thanks, opened another Discover 2.00% 12-month CD.

Their Savings account is already down to 1.60%, so I would hate to see how much more it’s going to come down….

Bob
Bob

Unless you dealing in$10,000,000 increments does it really matter.

There comes a 👉 where keeping your 💰 in your Socks makes sense…. 😂.

qmc
qmc

Not too long ago, Discover savings was 1.3 and the CD barely higher… It happens.

Abe Jjj
Abe Jjj

Elements 1.90% rate seems to have vanished. Their Helium rate is now 1.30% 🙁

Mike
Mike

Gotta pump that money into the system to keep that economy propped up yo…

Ronald
Ronald

Cal Coast Credit Union is offering 5% APY 5 month certificate: https://www.calcoastcu.org/special.htm?

Can credit card fund up to $5,000

lilurbanachiever
lilurbanachiever

Up to 5K only. Not enough for a hassle of opening anther account.

hailstate
hailstate

Elements Helium Savings appears to be down to 1.3% now.

https://www.elements.org/personal/savings/helium-savings/

Steve
Steve

Glad I locked in the 2.1% for 12 months promo last month.

Kim
Kim

I’m not seeing any sort of locked in rate on Elements Financial anymore.

Soobaerodude
Soobaerodude

For a few select cities in California, Poppy Bank is offering a 2.0% APY money market, rate fixed through June 31, 2021.

Here’s a picture of the flyer https://imgur.com/NT6fKF9
-$10K Minimum to open and maintain rate
-$2500 minimum to avoid service charge
-Agree to electronic statements or get charged $2.50 paper statement fee
“Offer only good at the Los Angeles/Westwood, Menlo Park, Milpitas, Orange County/Cost Mesa, Pleasanton, and Roseville locations”

Yu
Yu

are we sure they still offer this product?

qmc
qmc

The product yes, but rates can change. I’d you are in the area, check the local newspaper. They run the ad 1-2 times a week.

Soobaerodude
Soobaerodude

I just opened an account last week

Plus, here’s an ad from today’s San Jose Mercury News with the same flyer https://www.docdroid.net/Hamr1kb

qmc
qmc

soob aero dude… sti, wrx, brz outback?

Dan
Dan

Cue garden variety economists in the comments

Mark
Mark

And amateur virology experts

bax
bax

“independent” Fed

Feel TheJimm
Feel TheJimm

Yellen was Obama’s lap 🐕.

Chris
Chris

moved some to CD few days ago. A strong economy while fed has to cut rate like there is no tomorrow? yeah right.

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