CD rates am I right here?

[Folster]

I do not have a clue how to get a brokered CD.

My present bank only wants to pay me slightly over 1% on a CD which is not terrible for some brick and mortar banks.

Open a brokerage account with a discount broker like Schwab, TD, Etrade, or Vanguard.

 

[Mainstreet]

Open a brokerage account with a discount broker like Schwab, TD, Etrade, or Vanguard.

This is probably the way to go. I appreciate your help.

 

[Russ Smith]

I've been following Capital One closely, but I've been reluctant to make the jump because it's scary to give one's money to a computer link.

At least I have a Capital One credit card, so that's something.

Yeah I haven't really had any big issues with them at all. My CD's and other stuff are in the same login as the credit card. So when I login I see all of it at the same time. In fact I can pay my credit card bill from the money market.

I'm quite happy with them.

 

[jf-08]

I know this isn't CD rates, but I bought a new Toyota Corolla Hybrid for my accounting manager's 20-year anniversary this morning.

Pre-negotiations had the financing at 5.29%. When I went to pick it up this morning, the finance guy said the interest rate would be 9.8%. I simply said "no, I'm not paying anything over 5.29%" and got up and walked out and told my salesman that I'm out. The salesman called the finance guy back and told him he found some loophole about this 5.29%. Finance guy said he'd look at whatever the salesman found and agreed it would be the 5.29%.

When finalizing the docs with the finance guy, he got a call and looked at my in an odd way. He hung up the phone and said, "Well, I just got word that your rate is 4.99%."

I have no idea who called this dude or why, but I thought that was a pretty darn good rate in this economy.

 

[Devilmaycare]

I know this isn't CD rates, but I bought a new Toyota Corolla Hybrid for my accounting manager's 20-year anniversary this morning.

Pre-negotiations had the financing at 5.29%. When I went to pick it up this morning, the finance guy said the interest rate would be 9.8%. I simply said "no, I'm not paying anything over 5.29%" and got up and walked out and told my salesman that I'm out. The salesman called the finance guy back and told him he found some loophole about this 5.29%. Finance guy said he'd look at whatever the salesman found and agreed it would be the 5.29%.

When finalizing the docs with the finance guy, he got a call and looked at my in an odd way. He hung up the phone and said, "Well, I just got word that your rate is 4.99%."

I have no idea who called this dude or why, but I thought that was a pretty darn good rate in this economy.

Sounds like the dealership was trying to get greedy with you by taking extra points. I had a fight on that with my last car purchase.

 

[dreamcastrocks]

I know this isn't CD rates, but I bought a new Toyota Corolla Hybrid for my accounting manager's 20-year anniversary this morning.

Pre-negotiations had the financing at 5.29%. When I went to pick it up this morning, the finance guy said the interest rate would be 9.8%. I simply said "no, I'm not paying anything over 5.29%" and got up and walked out and told my salesman that I'm out. The salesman called the finance guy back and told him he found some loophole about this 5.29%. Finance guy said he'd look at whatever the salesman found and agreed it would be the 5.29%.

When finalizing the docs with the finance guy, he got a call and looked at my in an odd way. He hung up the phone and said, "Well, I just got word that your rate is 4.99%."

I have no idea who called this dude or why, but I thought that was a pretty darn good rate in this economy.

Can I work for you?

 

[dscher]

I know this isn't CD rates, but I bought a new Toyota Corolla Hybrid for my accounting manager's 20-year anniversary this morning.

Pre-negotiations had the financing at 5.29%. When I went to pick it up this morning, the finance guy said the interest rate would be 9.8%. I simply said "no, I'm not paying anything over 5.29%" and got up and walked out and told my salesman that I'm out. The salesman called the finance guy back and told him he found some loophole about this 5.29%. Finance guy said he'd look at whatever the salesman found and agreed it would be the 5.29%.

When finalizing the docs with the finance guy, he got a call and looked at my in an odd way. He hung up the phone and said, "Well, I just got word that your rate is 4.99%."

I have no idea who called this dude or why, but I thought that was a pretty darn good rate in this economy.

Couldn't pay cash?


Chump!

 

[jf-08]

Couldn't pay cash?


Chump!

They wouldn't allow it. They said that the most cash that they could accept is 50%. I've never heard of that before.

 

[dscher]

They wouldn't allow it. They said that the most cash that they could accept is 50%. I've never heard of that before.

Yep. This is a normal thing with inverted yields/tightening. Big banks aren't making cash on their spread. So, they sure as **** will make sure they are charging the well-off consumer during that environment. Strangely, it's idiotic. Because your cash is their benefit in this environment. So, their are always intricacies..but the financial environment is not conducive to anybody right now.

 

[Devilmaycare]

They wouldn't allow it. They said that the most cash that they could accept is 50%. I've never heard of that before.

That's further proof that it was the dealership being greedy. They wanted the finder fees and points from the loan. Is it even legal to not let you pay for the full thing? I would have walked on that one and gone to a different dealership. There's plenty of Honda dealerships around. Not like it's a specialty brand that only has one in the area.

 

[Russ Smith]

I know this isn't CD rates, but I bought a new Toyota Corolla Hybrid for my accounting manager's 20-year anniversary this morning.

Pre-negotiations had the financing at 5.29%. When I went to pick it up this morning, the finance guy said the interest rate would be 9.8%. I simply said "no, I'm not paying anything over 5.29%" and got up and walked out and told my salesman that I'm out. The salesman called the finance guy back and told him he found some loophole about this 5.29%. Finance guy said he'd look at whatever the salesman found and agreed it would be the 5.29%.

When finalizing the docs with the finance guy, he got a call and looked at my in an odd way. He hung up the phone and said, "Well, I just got word that your rate is 4.99%."

I have no idea who called this dude or why, but I thought that was a pretty darn good rate in this economy.

Lucy's sister and oldest niece both bought new cars right before the interest rate hike. the niece is 26 and had to use her dad to co sign even though she has a good job because she lacks credit history and they were going to give her 9 something. I think she got 5 or 6 so your 4.99 is good. The wife it's her and husband I don't know what they got for interest rate they are coming here tonight in the car so we'll see.

Terrible time to need a car but in both cases they needed to replace. The niece got 9K in tradein for an Altima that she said was beat up. My sisters BF said he thinks she could have gotten 12 to 13K selling it herself that's how expensive the used car market is right now

 

[puckhead]

They wouldn't allow it. They said that the most cash that they could accept is 50%. I've never heard of that before.

Can't you make a deal w/ financing and once you get the payment book, pay off the car in full? (assuming cash isn't an issue)

 

[dscher]

Can't you make a deal w/ financing and once you get the payment book, pay off the car in full? (assuming cash isn't an issue)

Probably some big prepayment penalties mixed in there I'd assume...

 

[jf-08]

Can't you make a deal w/ financing and once you get the payment book, pay off the car in full? (assuming cash isn't an issue)

Probably some big prepayment penalties mixed in there I'd assume...

Yeah some pre-payment penalties. No biggie though. Crazy economics in the world today.

 

[Mainstreet]

I thought pre-payment penalties were illegal, at least in Arizona. I paid off my last vehicle after getting better financing and perks from the manufacturer.

 

[jf-08]

I thought pre-payment penalties were illegal, at least in Arizona. I paid off my last vehicle after getting better financing and perks from the manufacturer.

Basically, the financed amount is the total amount, so if I pay it off early, the total payable would still be the same. Weird.

 

[Mainstreet]

Basically, the financed amount is the total amount, so if I pay it off early, the total payable would still be the same. Weird.

I don't understand it. Have you called to see what the payoff is? Maybe it is different.

 

[jf-08]

I don't understand it. Have you called to see what the payoff is? Maybe it is different.

I just checked the contract - no PP penalties, I just have to wait at least 90 days to pay off the loan if I decide to do that.

 

[Mainstreet]

I just checked the contract - no PP penalties, I just have to wait at least 90 days to pay off the loan if I decide to do that.

Awesome.

 

[Russ Smith]

This is probably the way to go. I appreciate your help.

FYI I just saw Capital One now has a 1 year CD for 3.25. So it jumped much quicker than I expected.

I'm going to be getting into one this week probably tomorrow I just have to figure out how much to put into it don't want all my cash tied up in CD's. But 3.25 sounds like a good 3rd rung on my CD ladder.

 

[Mainstreet]

FYI I just saw Capital One now has a 1 year CD for 3.25. So it jumped much quicker than I expected.

I'm going to be getting into one this week probably tomorrow I just have to figure out how much to put into it don't want all my cash tied up in CD's. But 3.25 sounds like a good 3rd rung on my CD ladder.

Wow. I predicted as much only last Thursday. I still need to PM you my thoughts, but I've been up to my knees in alligators.

 

[Folster]

FYI I just saw Capital One now has a 1 year CD for 3.25. So it jumped much quicker than I expected.

I'm going to be getting into one this week probably tomorrow I just have to figure out how much to put into it don't want all my cash tied up in CD's. But 3.25 sounds like a good 3rd rung on my CD ladder.

I'm puzzled as to why you would knowingly purchase a CD that's well below the market rate? 1 year CD's are over 4%. Is it just a convenience factor having it at Capital One?

 

[Devilmaycare]

I'm puzzled as to why you would knowingly purchase a CD that's well below the market rate? 1 year CD's are over 4%. Is it just a convenience factor having it at Capital One?

I was thinking 3.25 sounded low. I was looking at CDs this afternoon and I was seeing 2.95% for 1 month CDs. I was toying with the idea of one over letting cash sit in my money market.

 

[Russ Smith]

I'm puzzled as to why you would knowingly purchase a CD that's well below the market rate? 1 year CD's are over 4%. Is it just a convenience factor having it at Capital One?

Yes it's where it's at ease of putting money in but also right now 3.25 is the highest 1 year CD rate on both Nerdwallet and Bankrate. I know I can get a brokered CD but I have much of my cash in Capital One. MOre than half of it is co mingled cash(we're not married) so I'm careful about moving it around as it's only half mine.

 

[Mainstreet]

Yes it's where it's at ease of putting money in but also right now 3.25 is the highest 1 year CD rate on both Nerdwallet and Bankrate. I know I can get a brokered CD but I have much of my cash in Capital One. MOre than half of it is co mingled cash(we're not married) so I'm careful about moving it around as it's only half mine.

This is an issue with me as well. I have joint accounts.

My current bank requires both parties to appear on any transactions from joint savings. I don't know how this works on online accounts such as Capital One. Also, I'd like to add a beneficiary POD.