Any financial guys can explain CD's?
So when I look on line at CDs I am a little confused
For instance a CD that has a 1.3 coupon rate and a term to 3-11-19 has a yield to worst/APY of 1.509 and is priced at 99.967 it is rated a B+
Another CD same date 3-11-19 with same coupon of 1.3 is priced at 100.012 with a yield to worst /APY of 1.216 rated B
So why would anyone buy the second CD with a lower yield for more money and why would these not be discounted even further when I can buy a NEW CD with a 1 month yield to worst/APY of 2.050??!!
Example below why would you buy the discover at a higher price than the Goldman or the key bank over the Sycrony or the Amex?
2/14/2020 2.35 Goldman Sachs B 100.373 1.999 1.999
2/14/2020 2.3 Discover B 100.676 1.668 1.668
2/19/2019 1.35 Key Bank B 100.114 0.193 0.193
2/19/2019 2.05 Sycrony B 100.122 0.801 0.801
2/19/2019 1.6 Amex B 100.096 0.696 0.696
For instance a CD that has a 1.3 coupon rate and a term to 3-11-19 has a yield to worst/APY of 1.509 and is priced at 99.967 it is rated a B+
Another CD same date 3-11-19 with same coupon of 1.3 is priced at 100.012 with a yield to worst /APY of 1.216 rated B
So why would anyone buy the second CD with a lower yield for more money and why would these not be discounted even further when I can buy a NEW CD with a 1 month yield to worst/APY of 2.050??!!
Example below why would you buy the discover at a higher price than the Goldman or the key bank over the Sycrony or the Amex?
2/14/2020 2.35 Goldman Sachs B 100.373 1.999 1.999
2/14/2020 2.3 Discover B 100.676 1.668 1.668
2/19/2019 1.35 Key Bank B 100.114 0.193 0.193
2/19/2019 2.05 Sycrony B 100.122 0.801 0.801
2/19/2019 1.6 Amex B 100.096 0.696 0.696
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I'm pretty sure it depends on the type of music you like. 0 -
Got it THANKS!
quote:Originally posted by Mr. Perfect
I'm pretty sure it depends on the type of music you like.0 -
i ASK, is this % of interest stated what i will actually recieve at end of stated term of this cd ????..don't like all the confused terminology 0 -
PNC has a 19Month promotional offer at 2.5% 0 -
set up some CDs on staggered intervals....i had not a clue...so i asked if i needed to cash one in to pay for something big how much was the penalty..i was told ONE (1%) of the cd total ...hesus h christo ..the old CDs only earned 2/10ths of one percent ????....new ones at 2.27% and my bank matched what another local bank was offering...wife does online banks which have little higher rate but i do not feel comfy with sending money somewhere to somebody a long ways away....here i can get my hands on it or on someone 0 -
I just bought a Cleveland Ohio school tax-free bond the other day that is paying 4%. Cd's are a waste of money at this time. Bonds have been slowly going back up recently. 0 -
I too am putting money in municipal bonds. 3.25% and tax free. 0 -
C D's have different terms of interest and how and when it is earned. May be accademic but if you need to cash it in prior to it's maturity it makes a difference. 0 -
I have munis too but you do have to be aware of the possibility of default & that the value of the bonds will yoyo. I buy bonds at below par & expect to cash them when they mature if I live that long. I don't expect to sell them so I don't worry too much if they go down in value.
I do still have to pay some tax on them because of the tax on Social Security.0 -
you need to shop around some online banks at 3%+ 0 -
I don't care WHAT they are paying, AVOID SYNCHRONY BANK!
They are HORRIBLE HORRIBLE HORRIBLE! Paypal is using them now, and that is one stupid bank! I've never had so many problems with a bank, EVER!
Merc0 -
Ally bank typically has some of the best CD rates.
https://www.ally.com/bank/cd-rates/
Easy to open an account0 -
Also be aware that some CDs allow you to compound the intrest, but others like brokered CDs insist the interest is paid out and not compounded. 0
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