Have a large CD about to mature. Found at Texas Bay Area Credit Union a callable 24 month CD @5.69 apy. They guarantee that rate for at least 90 days. Afterwards it is up to their whim if they will call or not. I also have found a 23 month CD at Credit Human Credit Union in San Antonio paying 5.2 apy this non callable. Any advice or other alternatives are welcome. I do not anticipate needing the money.

Split your money between the two. 50-50, 70-30, something like that. IMO callables almost always get called.

Thanks in what I keep reading most callable CDs get called after 6 months to a year. I guess Im greedy just wanting to make the most without risk. The CD that about to mature rate is 2.8 apy. That was a 20 month CD I got at Navy Federal, thought at the time it was a good deal. How times have changed under crooked Joe Biden. I remember in the early 80's under Good Old Jimmy Carter, I got 17% on a CD from San Jacinto Savings, who went belly up several months later. However the bank that took them over made good thanks to the FSLIC. Anyway, advice to all shop around there are good rates to be had. Any more advice for us old guys please let me know. Thanks

rancher1953 said:

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Thanks in what I keep reading most callable CDs get called after 6 months to a year. I guess Im greedy just wanting to make the most without risk. The CD that about to mature rate is 2.8 apy. That was a 20 month CD I got at Navy Federal, thought at the time it was a good deal. How times have changed under crooked Joe Biden. I remember in the early 80's under Good Old Jimmy Carter, I got 17% on a CD from San Jacinto Savings, who went belly up several months later. However the bank that took them over made good thanks to the FSLIC. Anyway, advice to all shop around there are good rates to be had. Any more advice for us old guys please let me know. Thanks

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Those CDs paying 15, 16% in the early mid 80s were great but not good for the overall economy. That's how my parents paid my living expenses in college for several years. They just put X thousand in a CD and the interest was put in my account monthly and that was that (for living - rent, food, utilities). I worked and did co-op in order to make money for auto, beer, Hall of Shame, Roxy, etc.

You could explore government agency bonds. They are not call-protected, nor FDIC insured. But, the default risk may be relatively low (compared to a corporate bond at least). You can get 5.5-6% interest fairly easily. But, if feds cut rates, then it is possible they are called early. However, you can probably enter into another agency bond soon thereafter that reflects the new rates. For my fixed income, I use a mix of CDs, corporate bonds, and agency bonds. But I use Fidelity, and they have a lot of options available all at once (as other brokers do). It's possible you can find a better deal at a local/regional bank, though. Best 2-year at Fidelity today is 5.2%, and is callable. Good luck.

OldArmyCT said:

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Split your money between the two. 50-50, 70-30, something like that. IMO callables almost always get called.

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Callables always get called when you don't want them to.

yeah this just seems like a legal bait and switch... a way to get you in the door and then call it hoping you stick around the bank?

That's kind of the reason I prefer a brokered CD. It was tempting to jump on the Apple/Marcus/Amex savings and CD rates being touted, but then your money is stuck there. Plus the hassle of going through account creation, funding, etc...But I also don't get close to FDIC limit, and if you're wanting to put a larger amount of money into a CD, chasing rates could pay off.

Also, are those local/regional credit unions financially healthy? There is a reason why NYCB is offering super high interest rates right now. Do these institutions need the money? For a 2-year product, I'm guessing it's not about immediate funding, but that 5.6% seems a bit "too good".

Would you be interested in making a loan on land? You could get 10 to 12%.

I just want to update on CD rates that Im finding as mine are about to mature. Credit Human has 5.3 apy on an 18-23 month you choose the length. State Bank of Texas is 5.4 apy for 12 months. Citizens national bank of Texas is 5.65 apy for 12 months. Texas Bay Area Credit Union still has the callable 24 month at 5.69 apy and 60 month callable at 5.4 apy. Hope this helps, as I said earlier I long for the days of the 15-17%f CD.