Marcus no penalty CD

Quantcast XtNh53
Jan 9 19 Comments

Marcus offers 7,11, and 13 month CDs with no penalty on withdrawal before maturity. The 13 month CD offers 2.35% interest and the 7 month CD offers 2.25%. Why would I open a 7 month CD if I can open a 13 month CD and withdraw earlier with no penalty? What am i missing?

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TOP 19 Comments
  • Google YTBs33
    If you withdraw early you probably get 0 interest.

    You can put cash in a Marcus savings account for 2.25 so not sure why it makes sense to even fuck with a 2.35 cd
    Jan 9 6
    • Tableau / Product
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      Because the savings rate could drop and you'd have an extra x months of higher CD rates?
      Jan 9
    • Tableau / Product
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      You get the interest as long as you withdraw *after* seven days.

      Source: Been there, done that.
      Jan 9
    • Quantcast XtNh53
      OP
      Right. You do get the interest. Almost better than the savings except that you cannot make partial deposits/withdrawals like in savings. I’m guessing there must be some other catch else 7 and 11 month don’t make sense.
      Jan 9
    • Tableau / Product
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      I withdraw and invest every month or every time the rate increases as long as I won't trigger the seven day penalty. That takes care of "partial deposits".
      Jan 9
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      Besides I'm only using it for an emergency fund. If you're really trying to invest for the long term VTSAX and chill.
      Jan 9
    • Google hodl-gang
      No catch, there is no penalty after 7 days. They're hoping you'll leave the money there after 13 months so it auto renews at a less competent rate then.
      Jan 9
  • Walmart.com realDTrump
    Ally 12CD 2.75
    Jan 9 4
    • Google hodl-gang
      Ally 14CD 2.85
      Penfed 18CD 2.90
      Jan 9
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      No penalty?
      Jan 9
    • Walmart.com realDTrump
      Why would you do 18 given interest rate will go up again this year
      Jan 10
    • Google hodl-gang
      Because it makes sense for my CD ladder
      Jan 10
  • Facebook public2
    Rates are rising, don't touch cds
    Jan 9 3
    • Tableau / Product
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      Right. Buy FB and AAPL 🤣.
      Jan 9
    • Google anons2
      Where do you put the $$ then? Short term CDs or tbills are prob fine... After they expire can roll to higher yield
      Jan 10
    • Facebook public2
      The point was their savings account rate goes up every few months, if you lock yourself into a 3% CD and the liquid savings account pays 4% you are not winning lol
      Jan 10
  • New b37
    I have a 9 month auto renew CD at BoA paying 0.04% and can't get there in person to non-renew because I now live abroad. Can't tell them I live abroad because they'll close my account. Sucks.
    Jan 10 0
  • Intuit / Eng Djjrkfmwkw
    https://www.northpointe.com 2.3% SAVINGS account.
    Jan 10 0
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    It's no penalty *unless* you withdraw *within* 7 days.
    Jan 9 0

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