Highest Brokered CD Rates As Of 5/14/2024

Kirkland | May 14, 2024 | 377 posts since 2014

As of 4 pm EST 5/14/2024, here are the highest rates available at either Charles Schwab brokerage and/or Vanguard 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: 5.35% (Cathay Bank CA, Veritex Community Bank TX), 5.30% (Associated Bank NA WI, BofA, Barclays Bank DE, Discover Bank DE, GSB, Western Alliance Bank AZ)

9-month: 5.30% (Citizens Bank NA RI, Veritex Community Bank TX, Western Alliance Bank AZ), 5.25% (BofA, Barclays, GSB, WF)

1-year: 5.30% (Veritex Community Bank TX), 5.25% (BofA, Barclays, MSPB, SCHW, WF)

18-month: 5.15% (BofA, MSB, MSPB, WF)

2-year: 5.05% (MSB, MSPB), 5.00% (BofA, WF)

3-year: 4.90% (MSB, MSPB), 4.85% (WF)

4-year: 4.75% (MSB, MSPB)

5-year: 4.65% (MSB, MSPB)

Large 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.

Notes: Above 6-month, 9-month and 1-year terms are payable at maturity.

Above 18-month, 2-year, 3-year, 4-year, and 5-year terms are payable semi-annually, with an exception (WF). For 18-month through 5-year term, the only large (100B+ in assets) banks that pay monthly coupons are UBS Bank USA and Wells Fargo.

17

RichardW | May 15, 2024 | 821 posts since 2019

Kirkland -Thank you for posting these rates! Nice to see that the 4-year rate has increased 40 basis points since 3/13/2024, and that the 5-year rate has increased 35 basis points since 3/13/2024.

8

HollyHolly | May 18, 2024 | 89 posts since 2015

One thing I don't like about buying brokered CDs at Schwab is that there is generally a 4-5 day wait until they are purchased from the day you select them. You are sitting in cash earning nothing until then. If you have a money market account at Schwab you have to take the money out from it the day before you want to buy something with it. Fidelity is much better in this respect - the money moves seamlessly from money market account (without effort on your part) same day when you purchase something.

4

Kirkland | May 18, 2024 | 377 posts since 2014

I switched to holding zero cash at Schwab and zero in money market funds at Schwab. Holding my stocks at Schwab and able to use my allowable margin (approximately 1/2 of value of stocks) to be able to purchase brokered cd's at Schwab, if necessary. That way you lose almost nothing (one day) and don't incur any margin interest charge at Schwab by waiting until the day before settlement to pull in the money to Schwab (to settle the brokered cd).
I am using Vanguard money market funds and using Vanguard (if same deal available) to buy my brokered cd's. Like Fidelity, Vanguard only pulls the money from your money market settlement fund on the day of brokered cd settlement. (so you lose no interest). Difference is you have to already have the money in money market settlement fund at Vanguard, in order to contract to purchase the brokered cd.

3

Kirkland | May 18, 2024 | 377 posts since 2014

Another advantage of holding (especially monthly payable coupons) brokered cd's in your Vanguard account (as opposed to Schwab), is that the coupon immediately gets credited into your money market settlement fund account, where it immediately begins earning interest at the current money market account rate. As opposed to Schwab, which earns zero, or practically zero. You lose a day at Schwab transferring it out. Also, if you purchase brokered cd's in your Schwab account, be sure to first check to see the actual day of the week that they mature. If it matures on a Friday, Schwab gets to earn the interest on that matured cd, over the weekend (so now you lose 3 days).

1

Kirkland | May 18, 2024 | 377 posts since 2014

Update to Highest Brokered CD rates as of Saturday 5/18/2024. I logged into Schwab brokerage, this Saturday morning, and to my surprise, Wells Fargo has posted new higher rates! These were not posted on Friday afternoon, when I logged off of Schwab! Here goes, a couple of Wells Fargo rates leading the way again!
9-month: 5.35% at maturity
1-year: 5.30% at maturity
18-month: 5.20% monthly
2-year: 5.00% monthly
3-year: 4.85% monthly
The 9-month and the 18-month are now the highest rates available. Wells Fargo brokered cd's have never, to my knowledge, been available on the weekend. They are typically posted on Monday morning and pulled by Friday. These brokered rates, are so far, only available on Schwab brokerage, not posted on Vanguard. Settlement dates of the non-callable, new issue Wells brokered cd's are 5/29.

5

RichardW | May 18, 2024 | 821 posts since 2019

As of 3:00 PM EDT 5/18/2024, Fidelity is also offering the new-issue, non-callable brokered Wells Fargo CDs which Kirkland recently mentioned: 9-month: 5.35%; 1-year: 5.30%; 18-month: 5.20%; 2-year: 5.00%, and 3-year: 4.85%.

4

The financial institution, product, and APY (Annual Percentage Yield) data displayed on this website is gathered from various sources and may not reflect all of the offers available in your region. Although we strive to provide the most accurate data possible, we cannot guarantee its accuracy. The content displayed is for general information purposes only; always verify account details and availability with the financial institution before opening an account. Contact [email protected] to report inaccurate info or to request offers be included in this website. We are not affiliated with the financial institutions included in this website.