As of 5 pm EST 8/13/2024, 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% (Glen Falls National Bank & Trust NY)
6-month: 4.65% (Western Alliance Bank AZ)
9-month: 4.40% (Associated Bank NA WI, Western Alliance Bank AZ)
1-year: 4.25% (Grand Ridge National Bank IL - monthly, Western Alliance Bank AZ)
18-month: 4.10% (Western Alliance Bank AZ), 4.05% (Bank Hapoalim BM NY)
2-year: 3.95% (First Farmers Bank & Trust Co IN – monthly)
3-year: 3.90% (Medallion Bank UT – monthly)
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: This week, brokered cd rates continue to be controlled for the benefit of the troubled, smallest banks with a common problem. Low liquidity. Not much has changed from last week’s troubled list and low rates. From 2-year out to 5-year, brokered cd rates are all near but below 4.00%. If you want to lock in 5% CDs now, you have to look for those rates nationally or locally available via Direct Bank or Credit Union CDs.
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 nine weekly 4-week T-bill auctions most recently yielding investment rates: 5.381%, 5.381%, 5.381%, 5.365%, 5.365%, 5.375%, 5.365%, 5.324%, 5.355%. With “high for longer” and “T-bill and chill”, short yields have been great! Be aware though, it may not be that high, or that chill, much longer.
Current Money Market Yields at Vanguard (VMFXX (Settlement fund) 5.26%, VUSXX 5.26%, VMRXX 5.28%).
