4.7% Brokered CDs at Schwab | How To Buy (Step-By-Step)

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  • čas přidán 16. 12. 2022
  • The highest yielding brokered CD at Schwab is currently 4.7% with a maturity of 9 months, non-callable. This video: 4.7% Brokered CDs at Schwab | How To Buy (Step-By-Step) will walk through:
    - How to buy a brokered CD at Schwab the easy way
    - How to narrow down the brokered CD search if you have more specific requirements (e.g. non-callable CD vs callable CD), yield, maturity date, etc
    👉 Subscribe for all things inflation, Treasury bills, I-Bonds, investing & retirement!
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    WATCH NEXT
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Komentáře • 120

  • @DiamondNestEgg
    @DiamondNestEgg  Před rokem +7

    Thanks for visiting our personal finance channel! We hope this free content will help fast-track your financial journey! Everyone's financial journey is different. Please note that there are questions/ comments which I will not be able to answer without fully understanding your financial, personal & other circumstances.
    >>WATCH NEXT
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    ⭐ T-Bill Rates, Pricing & Interest | High Rate vs Investment Rate: czcams.com/video/keerkA4XaIk/video.html
    ⭐ T-Bill Auction Schedule | When You Can Buy New Issue T-Bills: czcams.com/video/xZr6EWkVJw0/video.html
    ⭐ China & The Fed Are Dumping Treasuries - Should You: czcams.com/video/Ywlr0JiTZMk/video.html
    ⭐ T-Bill Must-Knows: czcams.com/video/jIBn3VFkDw8/video.html
    ⭐ I Bought A $60,000 T-Bill Ladder: czcams.com/video/__oqvdtLoiE/video.html

  • @jieelyuu
    @jieelyuu Před rokem +1

    Thanks for this tutorial! Answers every question I would have. Just bought my first CD

  • @TALLXXL
    @TALLXXL Před rokem +4

    This video is so good I just watched it again...

  • @michaellogan3227
    @michaellogan3227 Před rokem +7

    Ive been laddering schwab and chase brokered cd's for a while now. It's a great way to maximize the fixed rate portion of my portfolio. I'm certain many people will benefit from this guidance. I just found your channel and immediately subscribed. Thanks for the info.

  • @CD318
    @CD318 Před rokem

    You are SO helpful! You've earned a new sub!

  • @sh3lby886
    @sh3lby886 Před rokem +1

    Yes, I recently learned, thanks.

  • @janecurtis5962
    @janecurtis5962 Před rokem +2

    sharp, concise cookie! Love it.

  • @yannip2083
    @yannip2083 Před rokem

    Just discovered this EXCELLENT channel and just subscribed.

  • @CurtisWinsor
    @CurtisWinsor Před rokem

    Very thorough. Well explained. Thank you!

  • @r.a.o.c.2592
    @r.a.o.c.2592 Před 9 měsíci

    Thank you for making this so easy. I love you for this. I am building my ladders now. Thanks!!!!!!~!!

  • @larryalaimo4973
    @larryalaimo4973 Před 7 měsíci

    Very clear! Thanks for the great info!

  • @preston3255
    @preston3255 Před rokem +1

    Thank you for a fantastic and informative video!

  • @leslieduran1738
    @leslieduran1738 Před 5 měsíci

    Thank you I learned so much

  • @ZanZ-qi6wz
    @ZanZ-qi6wz Před rokem

    Best video I seen. Thanks a lot!

  • @duc6612
    @duc6612 Před 4 měsíci

    I was looking to invest in CD for short term. Your video was helpful.. Thank you so much...

  • @genglandoh
    @genglandoh Před 7 měsíci

    Thank you for being very clear

  • @kbdefay
    @kbdefay Před rokem

    Great information. Thank you! Please consider doing a video on Money Market Accounts and Money Market ETFs

  • @ZOT369
    @ZOT369 Před rokem

    Nice Thanks!

  • @fubarbrandon1345
    @fubarbrandon1345 Před rokem

    Great information...thank you!

  • @tedosmond413
    @tedosmond413 Před rokem

    Excellent!

  • @sudhisira
    @sudhisira Před 10 měsíci

    Thanks for this video. My account will be transferred from TD Ameritrade to Schwab in a few weeks. This video helped me see what I should expect as a Schwab CD customer.

  • @TALLXXL
    @TALLXXL Před rokem +1

    Thanks .

  • @robertt6327
    @robertt6327 Před rokem

    I just discovered your channel And subscribe to it, I recently opened my Charles Schwab account and I do not know what I'm doing so I really appreciate all of this helpful information. I will be watching many of your post thank you for sharing your knowledge

  • @debrabullion3766
    @debrabullion3766 Před rokem +10

    So happy to have you back Jennifer! I’m hoping you do a video on what’s Happening with T Bills. If it’s a good time to transition into longer terms, 26, 52 week yet? Or do you think T Bill interest rates will continue going up! I’m kinda afraid of locking into a 13, 17, or 26 week T Bill and having the rates lower when they mature. I very much value your opinion. Thank you for all you do! 🙏🏻❤️🎅🤶

    • @simplefinance
      @simplefinance Před rokem +2

      A 13 week new issue T-bill is often a deceptively better investment than a 4 or 8 week for 1 main reason - and that is the extra days your money has to 'wait' before the T-bill 'activates'.
      with 4 and 8 week T-bills, your money goes in Wednesday at the latest so you have funds to bid on Thursday morning auctions, which then 'settle' the following Tuesday - the starting date for the 4 or 8 week period. So your money is actually occupied in this investment since Wednesday of the previous week! This has the effect of reducing a 3.8% APY on a 4 week bill to a 'real' APY of ~3.1%. An 8 week bill is less effected because those 6 extra days are a smaller fraction of the total term, but can still reduce ~4% to ~3.6-3.7% (please do your own math, only for illustrative purposes).
      Starting with 13 week T-bills, the number of additional days your money is waiting for the term to begin goes down from 6 days to 4 days. Combined with the longer term, the 4 days becomes a very small 'penalty' on your 'real APY'. For this reason, T-bills, especially beginning around the 13 week term, have an invisible (unpublished) advantage over 4 and 8 week bills in terms of APY, at least when bought from most brokers. Not sure about how this waiting period works on treasury direct, but I suspect it is the same.
      TL;DR:
      "Actual" term of the following T-bills:
      4 week - 34 days (6 additional days)
      8 week - 62 days (6 additional days)
      13 week - 94 days (4 additional days)
      You may or may not avoid this issue by 'renewing' your shorter term T-bills using the money from your maturing T-bills, but am not sure.
      Sorry for the long tangent. Getting back to your question, nobody knows for sure where rates will go, but the fed has suggested that rates will continue to rise in 2023, albeit at a slower rate than it has in 2022. The most recent 0.5% hike is likely to 'kick in' to treasury bill rates about 2 weeks after the hike based on history, but again not a guarantee.
      Nobody can make your decisions for you of course, but using objective data such as this may help you in your decision. 13 week or longer MAY make sense regardless due to the reasons discussed in length above.

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem +1

      Thanks Debra. I think you may have already seen this video but in case you haven’t, here’s my latest thinking on T-Bills. My New $60,000 T-Bill Ladder (How To Build A T-Bill Ladder | Bond Ladder | Treasury Bills 2023)
      czcams.com/video/4gaDsNYlxA8/video.html

    • @debrabullion3766
      @debrabullion3766 Před rokem

      @@simplefinance thank you so much for that explanation! Really helpful. There’s more to buying TBills than I knew. I’m learning a lot. I’m wondering when I buy T bill through fidelity if I choose the rollover option if we don’t have those waiting days with no interest?

    • @simplefinance
      @simplefinance Před rokem

      @@debrabullion3766 Another commenter on either this video or another has suggested that the 'rollover' feature some brokers offer can avoid the additional waiting days inbetween T-Bill maturity dates. Can't promise you this is accurate, so please do your own double checking!

  • @beb10
    @beb10 Před rokem +2

    Thanks for the great explanation! Once when the CD matures and rollover is not checked, does the principal and interest automatically be added back to my Cash & Cash Investment account?

    • @eddenoy321
      @eddenoy321 Před rokem +1

      It's automatically back to cash, normally.

  • @rolfbrunner4619
    @rolfbrunner4619 Před rokem

    Hello Jennifer, thank you for this very informative tutorial. I would like to ask a question. I'm a US citizen but will be moving to another country. Will I be able to purchase CD's if I don't have a US address? I would really appreciate if you could respond. Thank you

  • @letstalkemfs4061
    @letstalkemfs4061 Před rokem

    Excellent video. Very informative. I don't see many CDs at Schwab right now. Is that common? Only 5-year CDs?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      CD supply changes regularly at the various brokerage companies - you just have to keep checking unfortunately.

  • @allovertheplaceofficial
    @allovertheplaceofficial Před rokem +8

    @Jen why don’t you give us an update on your Tbill ladder strategy, are you still doing 13 weeks?

    • @debrabullion3766
      @debrabullion3766 Před rokem +2

      Yes!

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      My New $60,000 T-Bill Ladder (How To Build A T-Bill Ladder | Bond Ladder | Treasury Bills 2023)
      czcams.com/video/4gaDsNYlxA8/video.html

  • @petediaz9310
    @petediaz9310 Před rokem

    Bought my first cd at Schwab, thanks Jennifer; now can you clarify how much interest is collected for the various length cd's.

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      The interest should be specified with each CD if you click on the description box

  • @norberto95
    @norberto95 Před rokem

    Hi, Diamond. I followed this video and I purchased my first 25K CD at Schwab today. I think i did something wrong because immediately after my purchase i am $35 down. Talking about money preservation.

  • @irrelevant2235
    @irrelevant2235 Před rokem

    Would you please advise how you got to the fees section on 10:16?

  • @jasonwong1187
    @jasonwong1187 Před 11 měsíci

    I'm looking at 1 year CDs, and I see one that holds the principal for 1 year and 3 months. Do I earn interest on the extra 3 months that the bank is holding the money for? The coupon frequency is listed as Semi-Annually, so I am worried that the 3 months is less than that. And how do I see how often the interest is compounded? Is it compounded daily or monthly? Thanks!

  • @PhilippeOrlando
    @PhilippeOrlando Před 5 měsíci

    So if they APY is 3.8, or something like that, which is an annualized rate, correct? How much do you get, percentage wise in a month?

  • @ChiliDawg97
    @ChiliDawg97 Před rokem

    Thank you for the videos. QUESTION: Is there a way to receive a notification from Schwab when my T-Bills reach maturity?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      Not that I know of at the moment unfortunately - perhaps someone else in the community might be able to help.

    • @ChiliDawg97
      @ChiliDawg97 Před rokem

      @@DiamondNestEgg Thanks. I spoke to Schwab support via chat and I was told that there is no way to get alerts specific to a treasury item reaching maturity. I'll just track these assets on an external calendar.

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      Too bad - that would’ve made life a lot easier

  • @concernedcitizen8133
    @concernedcitizen8133 Před rokem

    I am not able to find any information on what is the penalty for early withdrawal of a CD in Schwab. Am I missing something?

  • @sh3lby886
    @sh3lby886 Před rokem +3

    I love your videos! I think I prefer to buy t-bills in my Roth account. I wasn't very clear if that is an advantage or not. Also, please send me the link if you have done a video on how to dollar cost average in the S&P and if you would do that now. Thank you so much! I tell everyone that will listen
    about your videos!

    • @TonyDL
      @TonyDL Před rokem +1

      Generally speaking you may want to put the more risky portion of your portfolio in your Roth due to the potential for tax free gains. But I get it, you don't want to lose your Roth either since you've already paid the tax there.

    • @supersteve8305
      @supersteve8305 Před rokem +2

      I agree with Tony. I would put growth and dividend growth in a Roth (stocks, etf, mutual funds). I would put T-bills in a brokerage account. JMO

    • @seantretiak2959
      @seantretiak2959 Před rokem

      Roth and IRA are tax deferred, which negates the tax benefits of treasuries over CDs (the elimination of state taxation). Thus, in my taxable account I prefer treasuries, but in my Roth (and IRA) I choose CD or treasuries- whichever yields more - so long as the CDs are FDIC and the terms are acceptable.

  • @sn-zg6gb
    @sn-zg6gb Před rokem

    What is the DTC eligible (yes) mean in the Schwab CD trade page ?

    • @kenclassen6616
      @kenclassen6616 Před rokem

      DTC stands for the Depository Trust Company. The short answer is if the CD is DTC eligible you can likely transfer it to another broker without having to redeem it, like you can do with stocks and ETFs.

  • @dfwyuvera
    @dfwyuvera Před rokem +1

    The Schwab CD Page have much better layout and CD details 👍 My account is with Fidelity though 😔

    • @woodsy7946
      @woodsy7946 Před rokem

      She has a good video for Fidelity

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      4-5% Brokered CDs At Fidelity 2022 | How To Buy (Step By Step Tutorial)
      czcams.com/video/sTce1fn25bM/video.html

  • @kjones5406
    @kjones5406 Před 8 měsíci

    can I transfer my ira Schwabs accounts into cd's?

  • @kellylee514
    @kellylee514 Před rokem +1

    I bought cds with schwab but didn’t check the blue sky warning. Is there a way to check that after the fact? Or would they not have gone through if issue?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      I’m assuming Schwab would have some checks, but not sure quite honestly - perhaps someone else in the community might have an answer

  • @dbest4755
    @dbest4755 Před rokem +1

    Jennifer - I ran out of Cash, 18 eggs now $5.22, it's crazy...

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      I know! And we’re limited to only two boxes each time.

  • @cjengland2365
    @cjengland2365 Před rokem +3

    We have our IRAs, 401k and brokerage account at one firm. Is there any advantage of splitting it up between different firms like Schwab, Fidelity and/or Vanguard?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem +6

      I like keeping my stuff in one place if I can to make my financial life simpler (others may do it differently). Either way, just make sure you stay under the SIPC limit. Here's more info on that: www.sipc.org/for-investors/investors-with-multiple-accounts

    • @Gary65437
      @Gary65437 Před rokem +1

      One advantage is if you like to buy stks during very high volatility days like with the vix at 40 some brokers bog down with all the traffic. So if your order is not going thru at one broker you can try using your other one. An example is Chase was very slow during the Oct 15 bottom this yr, hate to see it when we really have an active crash.

    • @davidosisek3867
      @davidosisek3867 Před rokem

      Hello Jennifer. Question - would there be a benefit to doing an in-service rollover from my 401k (fidelity) to my IRA account (vanguard) ? I feel like I’m losing out on some benefits of self directing my retirement funds compared to the options I have in the 401k. I realize this is a multi-faceted question, but would appreciate your thoughts anyway (even from a ten thousand foot view). Thanks!

  • @berryconway4296
    @berryconway4296 Před rokem

    I thought this was pretty useful. For me, Schwab's web site is something less than friendly. Thanks for a fine video.

  • @darrylr.4983
    @darrylr.4983 Před rokem

    I have my 401K at Schwab. I have $40K in the cash account, which I think is too much. Can I use say $30K to buy brokered CD's in my 401K, or does that not make sense? I'm in North Carolina so have around a 5% state income tax.

  • @pingtsai5029
    @pingtsai5029 Před rokem

    Thanks Jennifer, is each owner is entitled to $250,000 of deposit insurance coverage per unique beneficiary, a bank said?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      I go through how this works here: czcams.com/video/txmXJBGU_70/video.html

  • @jeilee9997
    @jeilee9997 Před rokem

    i have a question about I-bonds. If i invest into saving i-bonds, and pull it out after 5 years vs 30 years at it maturity date, is there a difference? I mean would there be a charge fee? for pulling out before 30 years but after 5 years?

    • @darrylr.4983
      @darrylr.4983 Před rokem +1

      I reached this after watching this channels videos on I-bonds. After 5 years there is no penalty. Prior to 5 years you are penalized 3 month's interest.

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      Glad you found your answer!

  • @Gelovan682
    @Gelovan682 Před rokem

    do you verify somehow that interest payments are being made timely? When I have looked at History or investment income, they don't appear to be the same nor do they appear to be as much as I expected. I will say that calling the 800 number always gets me a very helpful friendly helper. But I gather that there is no part of the website where you can monitor your holdings and interest or dividends paid to quickly verify you're getting your yield. Perhaps an app is the answer?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      Mine have always paid on maturity, so I can’t speak to CDs that don’t unfortunately.

  • @peterbergeris6510
    @peterbergeris6510 Před rokem +1

    What is the secondary mkt n why does Schwab charge? If I want to buy a cd at Schwab n have an account, and there are no new issues I want then I would have to buy in the secondary mkt. Does that mean they would have to get those CDs from another broker? Confused. At TD Ameritrade I didn't have to pay a commission.

    • @supersteve8305
      @supersteve8305 Před rokem +1

      The secondary market example. I buy a six month cd and in one month need the money. I sell the cd with 5 months to maturity to get my money. You or someone else buys it from me. The brokerage charges for the arrangement.

  • @Coco-yw9nf
    @Coco-yw9nf Před rokem

    Hi
    I watch all your videos.I bought brokered CDs at Fidelity.It’s Xmas time so no one can answer my questions.Do Fidelity charge to buy brokered CD?Thanks

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem +1

      Based on our experience, no fee if you buy new issue brokered CDs online.

    • @Coco-yw9nf
      @Coco-yw9nf Před rokem

      @@DiamondNestEgg thanks so much.I only bought new issues.You are truly awesome.On Fidelity I saw treasuries 3 months paying 4.476 3rd party price 98.59.I take it it’s secondary market.There are some paying 4.497 price 98.572.do you think this is cheaper price than treasury auction? Thanks

  • @touchsmith4630
    @touchsmith4630 Před rokem

    hello i have a CD at 3.15 % for 15 months should i cancel my bank CD I have a Schwab checking account and open with Schwab

  • @supersteve8305
    @supersteve8305 Před rokem

    If I try to buy a cd that is prohibited (like Ohio in this example), will Schwab or the bank recognize it and stop it? Thanks for another great lesson.

    • @supersteve8305
      @supersteve8305 Před rokem

      @John Smith I don't understand what that means in this example or otherwise. Could you clarify?

    • @supersteve8305
      @supersteve8305 Před rokem +2

      @John Smith you should have said "great conservative states". I would have understood that. Thanks for clarifying.

  • @marymazur700
    @marymazur700 Před rokem

    Hello this is Mary Ann from South Jersey I called Charles suave today to tell them did I close out my CD Schwab's they would have no problem with my plans to invest in the stock market and in the next few days come to their office and they will fill my stock market and bond request the man from suave was very pleasant and very helpful thank you for helping me make my investment for me and my daughter that we have a better understanding of what will transpire in a couple of days I can't thank you enough for your information❤

  • @selma5885
    @selma5885 Před rokem +1

    Why schwab? Is the same offered at fidelity if you don't have an account from Schwab and want to keep it simple?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      You can buy on Fidelity, Vanguard and the other major brokerage firms as well - I have videos on the channel for the former two if you’re interested.

  • @kwonh4008
    @kwonh4008 Před rokem +1

    Which brokerage would you say has the most selection of brokerage CDs?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      Not sure about this as I wasn’t comparing on this factor - sorry

  • @wildmountainsky
    @wildmountainsky Před rokem +1

    Do you have a step by step for selling CD's?

  • @kellylee514
    @kellylee514 Před rokem

    If I buy $250,000 am I fully fdic insured since brokered cd’s don’t compound interest? Or do they?

  • @kwonh4008
    @kwonh4008 Před rokem

    I believe brokered CDs pay "simple" interest. Bank CDs pay "compounding" interest meaning you earn interest on interest you earned and principal. Do you earn little more with brokered CDs than with bank CDs?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      Brokered CDs typically pay more than bank CDs - this video explains brokered CDs in greater detail: czcams.com/video/zhEiyW2N7KE/video.html

  • @isabelwang8769
    @isabelwang8769 Před rokem

    in the "FIND CD", why there is no 9 month maturity date in the search ?

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      It depends on what’s available at the time you look

  • @kitkarson4226
    @kitkarson4226 Před rokem

    Hi Jennifer, I have a simple question. Do you use multiple banks/brokerage to be safe? Can you talk about that? I need your advice.

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem +1

      Personally, not at the moment, but my circumstances may be different from yours. I have various brokerage accounts primarily for the purpose of this channel (e.g. to make tutorials, test things out, etc)

    • @kitkarson4226
      @kitkarson4226 Před rokem

      @@DiamondNestEgg Understood. Thanks. Happy new year!😀

  • @silasgraves5316
    @silasgraves5316 Před rokem

    I bought 4 brokered CDs from Schwab but my monthly statement only gives me the current market value of the CDs, not the actual value because I am going to hold the CDs until maturity. Is there a way to see the actual value each month from the Schwab website?? Thanks

    • @DiamondNestEgg
      @DiamondNestEgg  Před rokem

      Not that I’m aware of but perhaps someone else in the community might be able to shed some more light on this?

    • @silasgraves5316
      @silasgraves5316 Před rokem

      @@DiamondNestEgg thanks

  • @daveschmarder-1950
    @daveschmarder-1950 Před rokem

    I wonder if I'll die before I mature? Probably not.
    I used to buy brokered CDs about 5 years ago in my taxable account. I had a bunch of them and I ended up listing each one on my 1040. Not sure if I could have bunched them? Do you know?

    • @supersteve8305
      @supersteve8305 Před rokem +1

      Doesn't the tax form from the brokerage just list them all as interest in one group? Good question because I can't remember.

    • @daveschmarder-1950
      @daveschmarder-1950 Před rokem

      @@supersteve8305 No. they listed them separately, so that is how I filed it. It was the same with the Lending Club.
      I probably could have done them as one, but I didn't want to end up in IRS jail.

    • @elaine1743
      @elaine1743 Před rokem

      This is my first year buying brokerage cds. Never thought about having to list them individually. I just assumed the broker would bunch them together.

    • @daveschmarder-1950
      @daveschmarder-1950 Před rokem

      @@elaine1743 It depends on the brokerage. I use Vanguard. The payer banks were all different and that is probably the reason I listed then separately.

  • @simplefinance
    @simplefinance Před rokem +3

    I'll just add that people with Ameritrade will become Schwab sometime in the next year or two (I believe during 2023).
    Also, be careful to also calculate any number of days where you put your order in that your money has to be in your account before the CD 'kicks in'.
    If you get a 1 month CD but your money has to be in your account 4-6 days ahead of time, that's 4-6 days of extra time you need to calculate to get the real APY. On a 1 month CD, 4-6 days can reduce your APY by ~0.5% - 1%. I don't know why this isn't talked about more!
    This is true at least for 4 week treasury bills on Ameritrade for me. I have to have my money in my account by ~Wednesday evening at the latest to 'bid' on the 4 week treasury bill which gets sold on Thursday, but actually the 4 week term starts the following Tuesday. That's 6 extra days! I did some quick math and a 3.8% treasury bill becomes ~3.1% when you consider the extra 6 days it takes to earn the (face value - price paid).
    Be careful buying very short term fixed income investments!
    The extra 4-6 days won't effect longer term fixed income investments as much because it'll still be 4-6 days which will be a smaller percentage of the total term. And I'm not sure about 'rolling' investments where you can get back to back fixed income investments with the proceeds from the previous.
    Can anyone confirm or add details to this? Am I wrong here?

    • @Gary65437
      @Gary65437 Před rokem

      @John Smith It only takes a couple days to transfer your tax acc and a week to transfer an IRA. Was a pretty simple transfer.. I did hear Feb is when auto transfers will start. I hope it goes smoothly and Schwab doesn't bog down with issues or overcrowding, slowdowns during market volatility.

    • @rightangletriangle3188
      @rightangletriangle3188 Před rokem

      Good point, I never think about it like that. I guess to avoid that, you can do 1 year CD with 3 months increments, so the shortest duration one is 3 months and the error for 4-6 days holding period is relatively small. I started my CDs ladder with 1 month increments and up to 6 months. So only the very first part of the ladder has this problem, once the first 1 month is due and it will get rolled over to the 6 months one. Now the interest rate has been rising steadily, I extend the ladder to 1 year instead. When Fed pauses, I will extend the ladder further.

    • @supersteve8305
      @supersteve8305 Před rokem

      I agree. They deduct it on the auction day but it takes several days for the cd or t-bill to be issued. A four day free interest for someone. I have read somewhere in comments that if you do automatic rollover it eliminates this problem, but I don't know if that is true. The money should be left in your account until issue day IMO. While a much lower rate, at least you would earn interest in your fixed account.

    • @jeff.0-3
      @jeff.0-3 Před rokem +1

      I work at a large OSJ that supervises accounts from both Schwab and TD Ameritrade. I was told that the full switch over will take place around the end of Q3 2023.

    • @SummerlinRealtor
      @SummerlinRealtor Před rokem

      My Schwab office has told me that the transition will be completed next year.

  • @sh3lby886
    @sh3lby886 Před rokem

    BTW, I forgot to mention that I have my Roth with TD Ameritrade.

  • @kennethdunn7448
    @kennethdunn7448 Před rokem

    ✌🏿