As of 11am EST 8/07/2024, 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: 4.95% (Dime Community Bank NY), 4.90% (Ameris Bank GA, Kearny Bank NJ)
6-month: 4.75% (Independent Bank TX)
9-month: 4.40% (Bank OZK AR - monthly)
1-year: 4.30% (FirstBank TN)
18-month: 4.05% (Citizens Bank TN)
2-year: 4.00% (Customers Bank PA, FirstBank TN, Flushing Bank NY - monthly)
3-year: 3.95% (Customers Bank PA)
4-year: 3.90% (Customers Bank PA)
5-year: 3.85% (Customers Bank PA)
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: For those staying liquid, expecting multiple 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 eight weekly 4-week T bill auctions most recently yielding investment rates: 5.381%, 5.381%, 5.365%, 5.365%, 5.375%, 5.365%, 5.324%, 5.355%. Current Money Market Yields at Vanguard (VMFXX (Settlement fund) 5.28%, VUSXX 5.27%, VMRXX 5.29%). With T-bills and Treasury Money Market VUSXX, your interest income is state/local income tax free.
This week appears to be a chance for illiquid and smaller banks to try to sell brokered CDs. If you have to lock in any CDs now, look for higher rates that are nationally or locally available via Direct Bank or Credit Union CDs. An example of this is Bank OZK AR. They are offering via their Bank website, 5.40% APY on a 7-month, 5.00% APY on a 13-month, while only offering new-issue brokered rate of 4.40% monthly on a 9-month.
