Bricks and mortar banks in our area used to have very low interest rates on short term CDs , around 0.02 to 0.03% for all except for promotional CDs that had competitive rates. Although longer term bank CDs are better nowadays they still are not competitive. Usually, I buy CDs from my broker, which had competitive CDs at market rates. A few years ago, I checked out our local credit union, and they had very competitive rates. So we opened a few CDs with a local credit union.
A couple weeks ago, we renewed some CDs that had matured at the credit union. Today, I checked the CD rates at the brokerage, and they were 0.3% lower than the credit union CD. Woohoo! We decided a few years ago to stay at the credit union for part of our fixed income portfolio for diversification.
At the credit union, we get the benefit of working with the same representative over past few years. We like having the personal connection and contact, which doesn't happen when buying CDs online. Finally, if we like the current CD rate, we can allow autorenewal for the same term. Maximum simplicity.
This is not financial nor CD advice. Please consult a professional advisor.
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