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Highest Brokered CD Rates As Of 5/29/2024

Kirkland
  |     |   377 posts since 2014

As of 3 pm EST 5/29/2024, 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 3-month, 6-month, 9-month, 1-year, 18-month, 2-year, 3-year, 4-year, and 5-year:

3-month: 5.45% sold out (Main Street Bank MA), 5.40% (Liberty Bank CT, Mizrahi Tefahot Bank CA)

6-month: 5.45% sold out (Hancock Whitney Bank MS), 5.40% (Hingham Institution for Savings MA, Mizrahi Tefahot Bank CA, Primis Bank VA)

9-month: 5.35% (Cross River Bank NJ, WF)

1-year: 5.30% (BofA, First Horizon Bank TN, First National Bank of Omaha NE, MSPB, SCHW, WF)

18-month: 5.25% sold out (Bank Hapoalim B.M. NY), 5.20% (BofA, MSB, MSPB, WF)

2-year: 5.05% (BofA, Bank Hapoalim B.M. NY, MSB, MSPB, WF)

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

4-year: 4.80% (MSB, MSPB)

5-year: 4.70% (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.

Note: Wells Fargo Bank pays monthly coupons on 18-month, 2-year, and 3-year. MSB has a 2 1/2 year at 5.00%.

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16


RichardW
  |     |   821 posts since 2019
The rate on the 1-year Charles Schwab Bank new-issue, non-callable, brokered CD increased to 5.35% today. As of 3:30 pm EDT, 5/30/2024, it was available at Vanguard and Fidelity.
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6
HollyHolly
  |     |   89 posts since 2015
The trouble with buying brokered CDs at Schwab is that your money is sitting uninvested because the date of the purchase is always at least 5 days after you select the CD and money is sitting uninvested while you are waiting for the purchase date - unless you have a money market fund, but then you have to take the money out of the fund the day before the purchase of the brokered CD and have it uninvested for an entire day and possibly a weekend.
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4
Kirkland
  |     |   377 posts since 2014
HollyHolly exactly. I see this as a major business problem for Schwab.
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3
txFish1
  |     |   479 posts since 2023
That is the nice thing about Fidelity it sits earning almost 5% until settlement date
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5
w00d00w
  |     |   360 posts since 2012
when i look at brokered CDs, i'm also looking at the applicable treasury rate as a point of reference. for instance, the applicable 2 year treasury yield is currently 5.02% (according to Vanguard's market yield page) vs 5.05% for best brokered CD. with a spread that thin, i'd just buy the treasury instead.
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3
Kirkland
  |     |   377 posts since 2014
An update on Wells Fargo Bank. At both Vanguard and Schwab, Wells Fargo has increased their non-callable, new-issue brokered CD's as of Friday, 1 pm EST. New rates are:
9-month: 5.40%
1-year: 5.40%
18-month: 5.20%
2-year: 5.10%
3-year: 4.90%

Note: 18-month, 2-year, and 3-year interest are paid monthly. All are settlement dates of 6/11/24.
Reply
4
Kirkland
  |     |   377 posts since 2014
The Wells Fargo brokered 1-year 5.40% at maturity, is similar to what you are currently receiving in liquid Vanguard money market funds as follows:
VUSXX (Treasury) 5.29%/ compound yield 5.42%
VMRXX (Federal Admiral) 5.29%/ compound yield 5.42%
VMFXX (Federal Settlement Fund) 5.28%/ compound yield 5.41%
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3


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