As of 6 pm EST 7/23/2024, 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: 5.25% (Flushing Bank NY, Kearny Bank NJ, Third Fed Svgs & Ln Assn OH)
6-month: 5.15% (State Bank of India NY)
9-month: 4.95% (BofA)
1-year: 4.85% (Santander Bank NA MA), 4.80% (BofA, SCHW)
18-month: 4.60% (BofA, MSB, MSPB, Valley National Bank NJ)
2-year: 4.50% (BofA, MSB, MSPB)
3-year: 4.45% (Sallie Mae Bank UT)
4-year: 3.95% (Cross River Bank NJ)
5-year: 4.30% (Sallie Mae Bank UT)
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: Brokered CD rates have fallen off the cliff.
For those staying liquid, expecting cuts not to materialize, or only a one and done recalibration cut later this year, or waiting for the yield curve to steepen (longer rates to rise) and/or waiting for the bond vigilantes to appear, demanding higher longer rates, here are the previous six weekly 4-week T bill auctions most recently yielding investment rate: 5.365%, 5.365%, 5.375%, 5.365%, 5.324%, 5.355%. Current Money Market Yields at Vanguard (VMFXX (Settlement fund) – 5.29%, VUSXX – 5.28%, VMRXX – 5.30%). With T-bills and Treasury Money Market VUSXX, your interest income is state/local income tax free.
With the careful approach that the fed has taken thus far, it seems reasonable to assume, that the fed could continue to stay on hold until after the election. With all the political chaos, we need to count on a steady hand at the federal reserve, and it could even be 2025 before any tweaks.
MSB, MSPB have a 2 1/2 -year, 4.45%, available at Vanguard. There are no MSB, MSPB rates posted at 3-year, 4-year, nor 5-year.
