As of 4 pm EST 5/07/2024, here are the highest rates available at Charles Schwab brokerage for non-callable, new-issue brokered CDs with terms of 6-month, 9-month, 1-year, 18-month, 2-year, 3-year, 4-year, and 5-year:
6-month: 5.30% sold out (Hingham Institution for Savings, MA), 5.25% (BofA, GSB)
9-month: 5.25% (Bank of China, NY), 5.20% (BofA, GSB)
1-year: 5.20% (WF), 5.15% (BofA, MSB, MSPB)
18-month: 5.15% (MSB, MSPB), 5.10% (BofA, WF)
2-year: 5.00% (BofA, MSB, MSPB, WF)
3-year: 4.90% (MSB, MSPB), 4.85% (WF)
4-year: 4.70% (MSB, MSPB)
5-year: 4.60% (MSB, MSPB)
Issuers abbreviations:
BofA => Bank of America, NC; GSB => Goldman Sachs Bank USA, NY;
MSB => Morgan Stanley Bank, UT; MSPB => Morgan Stanley Private Bank, NY;
SCHW => Charles Schwab Bank, TX; UBS => UBS Bank USA, UT; WF=> Wells Fargo Bank, SD.
Wells Fargo re-enters into the mix, offering brokered cd’s this week. I am partial to Wells Fargo for two reasons. First, Wells is a GSIB, and second, on their 18-month, 2-year, and 3-year, Wells is paying monthly coupons and so, one can lock in the 2-year, 5% rate and reinvest the monthly coupon (at current higher rates) for compounding, to achieve a higher total return.
Wells settlement dates are 5/14.
Notes: On 5/6/2024, Wells was offering a 9-month 5.25%, but pulled the offering early on 5/7/2024. It is unknown if it may reappear later this week. In order to be competitive with Wells, Morgan Stanley Bank and Morgan Stanley Private Bank is offering a 5 basis points higher rate on the 18-month and 3-year. MSB, MSPB offer semi-annual coupons.
