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Wells Fargo leading the way on non callable short term brokered CD rates

Kirkland
  |     |   377 posts since 2014

On Monday mornings, the last two Mondays (Tuesday last week because of holiday), 10:39 am EST exactly, Wells Fargo's weekly new non callable 12 month, 18 month, and 2 year brokered CD's rates post at Charles Schwab brokerage. This week 5.45%, 5.40% and 5.25% respectively. The rest of the issuers will eventually follow today and this week, with increases to match. Wells Fargo is a G-SIB (global systemically important bank) and this gives me some security in purchasing their non callable brokered CD's.

Although I have not seen Wells issuing longer term lengths, watch and wait, as their shorter rates will affect the longer rates offered. We should see 3 year non callable CD brokered rates rise to 5.00% this week.

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txFish1
  |     |   479 posts since 2023
Wells Fargo has the same rates posted on Fidelity as of an hour ago. Discover does have a 5% non-callable 3 year CD that also just listed at Fidelity
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Kirkland
  |     |   377 posts since 2014
Yes. 12:39 pm EST, Discover's new weekly rates posted at Schwab. Discover matched Wells non callable 2 year rate of 5.25% and Discover is the first issuer to raise non callable 3 year rate to 5.00%. :)
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choice1
  |     |   372 posts since 2023
Wells has capital problems…among other things!
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Kirkland
  |     |   377 posts since 2014
Weiss rates Wells only a Fair current capitalization (only a 5 out of 10), which is not good. However, Wells is a G-SIB, which overrides their capital and other problems. Janet Yellen would guarantee both their insured and uninsured deposits for only that (G-SIB) reason. Just my opinion of course.
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GH1
  |     |   1,058 posts since 2017
Which bank does not have scandals now. Wells is a great hub bank
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Kirkland
  |     |   377 posts since 2014
Today, we have Wells gobbling up all the cash, with the highest non callable shorter rates, and JP Morgan Chase gobbling up all the cash, with the highest callable shorter rates. This should tell you that (when these 2 giant banks are gobbling) rates are going higher and higher for longer and that both Wells and JP Morgan stocks are a buy! Just my opinion of course.
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Sperry8
  |     |   274 posts since 2011
Jamie Dimon came out and said he sees the 10 year over 5%. Not many agree. We shall see who is right. Meanwhile, I don't think any of this has to do with their stocks being a buy.
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choice1
  |     |   372 posts since 2023
And when the two mega-banks are directed to increase their capital requirements while additional lending is not in the cards…interest costs are going up and the stock is going…. And then the message for little/mid-sized FIs is…rough times ahead!
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Kirkland
  |     |   377 posts since 2014
Little/mid-sized FI's were existing on our (savers) free money. They were paying nothing to savers and that is why depositors have fled them and they will collapse or be consolidated. Sorry choice1 but I aint lending any free money to you no more. And you speaking of bad banks, you should be directing your furor to Bank of America! They are the worst, worst customer service, highest fees, they have the worst capitalization (Weiss ratings of .7 on a 1 to 10 scale) ratio and they are offering the lowest brokered rates. Why don't you put your savings there!
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choice1
  |     |   372 posts since 2023
And today’s WSJ article, “Banks Load Up on $1.2 Trillion in Risky Deposits,” highlights the financial risks and some of your favorite players in brokered deposits!
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Sperry8
  |     |   274 posts since 2011
I picked up a UBS Bank 5.25% non callable 2 year brokered CD today. A fine rate imo. 3 years at 5% is also nice... but I may need the money in that 3rd year so I went slightly shorter term. When I checked the Wells one this AM it was there, but in the afternoon it was all gone, so I went with UBS who also pays monthly. The remaining 5.25% ones from Amex, Discover, and Morgan Stanley all pay semi-annually.
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Kirkland
  |     |   377 posts since 2014
Wells raises the bar again! This week, new non callable 12 month, 18 month, and 2 year brokered CD rates, posted at Charles Schwab brokerage. 5.50%, 5.45%, and 5.30% respectively. All settlement dates 9/26/23.
I think CIT Platinum (liquid savings), to keep par, will need to quickly raise rates from 5.05% APY to 5.25% APY (liquid), or risk large outflows.
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txFish1
  |     |   479 posts since 2023
Fidelity has the exact same Wells Fargo CD's that just popped up. Also Bank of America has a 1 year at 5.5% non callable CD at Fidelity
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Kirkland
  |     |   377 posts since 2014
And Wells has a 9 month at 5.50% too. This should push widespread liquid rates higher to 5.25%.
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RichardW
  |     |   821 posts since 2019
I guess Wells Fargo plans on selling a lot of those CDs…as of 1pm ET 9/18/2023, Fidelity had a “Quantity Available” of 485,481 (or $485,481,000.00) of the 1-year @ 5.50% CD, 499,213 (or $499,213,000.00) of the 18-month @ 5.45% CD, and 494,916 (or $494,916,000.00) of the 2-year @ 5.30% CD. I don’t ever remember seeing “Quantity Available” numbers that high before regarding new issue, non-callable brokered CDs at Fidelity.
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Kirkland
  |     |   377 posts since 2014
Wow. That is incredible! On Charles Schwab brokerage, Wells offered up 100,000 quantity of each.
As far as business news, Wells Fargo is consolidating, selling real estate (branches) and cutting labor costs. This from Florida Trend....
Wells Fargo & Co. is selling four branch locations in Tampa Bay and 10 throughout Florida as the bank continues to downsize its real estate footprint and trim costs through layoffs. CFO Mike Santomassimo said the bank has “a lot more to do” to increase efficiencies during Tuesday’s Barclays Global Financial Services Conference. Wells has pruned its workforce every quarter since the third quarter of 2020, cutting almost 40,000 jobs in total since then, he noted. 
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RichardW
  |     |   821 posts since 2019
I wonder if someone made a factor of 10 error in the “Quantity Available” listings for the Wells Fargo CDs offered at Fidelity?

As of 2pm ET 9/18/2023, Discover matches Wells Fargo’s rates for the 1-yr, 18-mo, and 2-yr new issue, non-callable brokered CD products offered at Fidelity. For the 18-mo and 2-yr term products, the Wells Fargo CDs provide a monthly coupon, while the Discover CDs provide a semi-annual coupon. For the 1-yr term products, the Wells Fargo CD and the Discover CD each provide interest payments only at maturity.
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txFish1
  |     |   479 posts since 2023
I do not believe I have ever seen more than 100,000 in quantity
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Sperry8
  |     |   274 posts since 2011
Yea, saw that today. Missed out on that .05% bps by 5 days. Way to go Wells. Wonder if the next few weeks brings 5.35%?
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Kirkland
  |     |   377 posts since 2014
It has taken 6 months, Wells non callable offering of 5.30% monthly on the 2 year matches the highest non callable 2 year rate offered, going back to March 2023 (Pinnacle Bank, TN 5.30% monthly SD 3/22/23)
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Kirkland
  |     |   377 posts since 2014
Yes. 5.35% yesterday, both posted on Schwab brokerage, 2 year non callable, Freedom Bank of Virginia (VA) monthly (and sold out), and today, 5.35%, just posted 10:45 am ET, Synchrony Bank (UT) semi, 5500 quantity, SD 9/29
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Kirkland
  |     |   377 posts since 2014
Today, on Charles Schwab brokerage, Morgan Stanley Bank (UT) jumps over Wells on their 18 month non callable CD rate to 5.50%, payable semi-annually. They had to do this to be competitive, when Wells (5.45%) is paying monthly. In a rising rate environment, it's nice to receive those interest payments monthly.

The rush for your liquid cash is on. :)
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Kirkland
  |     |   377 posts since 2014
Further on Morgan Stanley Bank (UT), their 3 year non callable CD rate offered today, on Schwab brokerage of 5.10%, matches the highest non callable 3 year rate offered, going back to March 2023 (Discover Bank, DE 5.10% semi SD 3/22/23)
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RichardW
  |     |   821 posts since 2019
Morgan Stanley Bank is also leading the move to increase the rates of some of the longer term, new issue, non-callable brokered CDs. As of 5pm ET 9/19/2023, Morgan Stanley was offering a 4-yr @ 4.85% and a 5-yr @ 4.70% at Fidelity. Although neither of these are as impressive as the 3-yr @ 5.10% which Kirkland mentioned.
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RichardW
  |     |   821 posts since 2019
As of 12:30 pm ET 9/20/2023, UBS Bank USA matches Morgan Stanley Bank's rates for the 5-yr @ 4.70%, 4-yr @ 4.85%, 3-yr @ 5.10%, and 2-yr @ 5.30% new issue, non-callable brokered CD products offered at Fidelity. UBS Bank USA CDs provide a monthly coupon.
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choice1
  |     |   372 posts since 2023
If I was Wells or other FI shortchanging their brick and mortar customers with brokered CDs I’d look at eliminating certain in branch services and employees. You all are too gullible. But then again some of those FIs need those walk-in customers for its previous/new “private clients”…if you get my drift
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RichardW
  |     |   821 posts since 2019
Kirkland, thanks for the feedback regarding the Synchrony Bank 2-year @ 5.35%, new issue, non-callable brokered CD offered at Schwab. Fidelity had a few available at 1:30 pm ET 9/21/2023, but they just sold out. Vanguard has a quantity of 1529 as of 1:45 pm ET 9/21/2023. Perhaps Fidelity will restock the shelves soon.
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Kirkland
  |     |   377 posts since 2014
Wells Fargo continues to raise their rates again! On 9/25/23, Posted on Schwab brokerage 100,000 quantity of each, settlement dates 10/2/23, non callable 12 month, 18 month, and 2 year brokered CD's, now, 5.55%, 5.50%, and 5.35% respectively.The 12 month interest payable at maturity, the 18 month interest payable monthly, and the 2 year interest payable monthly!
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Kirkland
  |     |   377 posts since 2014
Interestingly, they changed their settlement dates from Tuesday, to Monday this coming week, 10/2. This could be to prevent potential purchasers from continually being able to wait out the interest rate increases.
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