Higher Rates At Schwab And Vanguard

glasses
  |     |   13 posts since 2019

This morning both Schwab and Vanguard have much higher brokered cd rates than any bank or cu rates that are listed on this site.

6 month = 2.11

9 month = 2.6

12 month = 2.9

18 month = 3.05

2 yr = 3.15

They do not charge a fee for placing the buy.




CuriousDave
  |     |   87 posts since 2018
U.S. Government Agency bonds (includes GSEs) seem to be competitive now versus CDs. Of course, these are not insured. Today Vanguard is quoting:
1 year 3.00%
2 year 3.30%
3 year 3.72%
5 year 3.90%
7 year 4.20%
Maybe Ken can provide some insights on these as an alternative to CDs?
Infinityy
  |     |   57 posts since 2020
Slightly higher credit risk, and they are not exempt from state/local income tax like US Treasuries are.

Another interesting option is $SPX box spreads. You can typically earn 0.3 - 0.5% more than US Treasuries, and 60% of the profit is taxed as a long term capital gain, not ordinary income
CuriousDave
  |     |   87 posts since 2018
Can you confirm that all U.S. Agency bonds, not only Government Sponsored Entity bonds (like Ginnie Maes) are subject to state income taxes?
Infinityy
  |     |   57 posts since 2020
It depends on the issuer. There's a list in this pdf

https://www.rbcwm-usa.com/resources/file-687493.pdf
CuriousDave
  |     |   87 posts since 2018
Thank you.
RichardW
  |     |   59 posts since 2019
At 12:30 pm EDT today (6-21-2022) TD Ameritrade is currently offering a new issue, non-callable, Northpointe Bank 3-month brokered CD @ 2.00%.
garyh1961
  |     |   493 posts since 2017
That’s good for 3 months. I opened 2 weeks ago. 1.76 for 3 months
Beammmm
  |     |   2 posts since 2022
Almost all brokered CD are now 2% 3 month. E*Trade, vanguard etc…


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