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Highest Brokered CD Rates As Of 9/11/2024

Kirkland
  |     |   308 posts since 2014

As of 11 am EST 9/11/2024, 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% (Northpointe Bank MI, Umpqua Bank OR)

6-month: 4.70% (State Bank of India NY) 4.65% (Barclays Bank DE, GSB)

9-month: 4.45% (Barclays Bank DE, Encore Bank AR - monthly, State Bank of India NY, WebBank UT)

1-year: 4.35% (MSB, MSPB, Santander Bank NA DE, State Bank of India NY)

18-month: 4.15% (Israel Discount Bank NY, MSB, MSPB)

2-year: 3.95% (Ally Bank UT, MSB, MSPB, Valley National Bank NJ)

3-year: 3.90% (Ally Bank UT, MSPB, Northeast Bank ME)

4-year: 3.85% (MSPB, Northeast Bank ME)

5-year: 3.80% (Bank Hapoalim BM NY, Merrick Bank UT – monthly, 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: Another week to stay away from most brokered cd’s. Many on the list of these banks have liquidity concerns, problem commercial loans, stability issues etc. Keep under FDIC limits. Check their recent ratings on Weissratings.com and recent news before buying.

If you want to lock in 5% CDs now, look for those rates nationally or locally available via Direct Bank or Credit Union. Check DepositAccounts.com CD Rates. 5% CDs are available for durations up to 1-year. For longer term, currently available direct is a 5-year Advancial FCU jumbo dividend rate of 4.38%/4.47% APY.

For those staying liquid, expecting a one and done recalibration cut in September, or expecting multiple cuts not to materialize until later this year or next 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 ten weekly 4-week T-bill auctions most recently yielding investment rates: 5.171%, 5.263%, 5.335%, 5.355%, 5.381%, 5.381%, 5.381%, 5.365%, 5.365%, 5.375%.

As of September 4, ICI reported to the Federal Reserve that $6.30 trillion of cash is parked in money market funds. This is an increase of $37.26 billion from the prior week. Current Money Market yields at Vanguard are (VMFXX (Settlement fund) 5.21%, VUSXX 5.19%, VMRXX 5.22%).

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18


w00d00w
  |     |   337 posts since 2012
for those who buy callable brokered CDs, i recently had a 5.3% brokered CD called 18 months after being issued. had a few called earlier this year but that is the lowest call rate I've experienced so far during this cycle.
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Tegan
  |     |   20 posts since 2019
I've got a 5% payment coming next month on a callable cd and am curious to see if it gets called.

I'd like to keep my investment money at 4%, and it should be possible as long as they don' t take the rate cuts past 4.5% or so. -- Crossing my fingers...
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2
w00d00w
  |     |   337 posts since 2012
regarding the rate cut floor, the most recent summary of economic projections had the median fed fund rate at 5.1 by year's end, 4.1 end 2025, and 3.1 end 2026. they'll be updating those projections next week. will be interesting to see how aligned the bond market currently is with the Fed's forward view
https://fred.stlouisfed.org/series/FEDTARMD
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4
Tegan
  |     |   20 posts since 2019
5% JP Morgan cd came due yesterday and they didn't call it. Next call date is April.
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1
Kirkland
  |     |   308 posts since 2014
Tegan, I hold a UNITED FIDELITY BANK FSB EVANSVILLE IN CD FDIC #29566 CLLB 5.8% 10/27/28 10/27/23. It is a 5 year CD, interest is payable monthly and skipped its first call date of 10/27/24. It is callable monthly.
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3
Tegan
  |     |   20 posts since 2019
That is very very cool Kirkland and I wish you luck on it. :)

Hopefully we'll still be able to get some decent rates in the not so distant future. -Fingers crossed.
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3
RichardW
  |     |   666 posts since 2019
As Kirkland mentioned in this post, $6.30 trillion of cash is currently parked in money market funds.

Here is an article from “A Wealth of Common Sense” a blog by Ben Carlson which examines the topic of what typically happens to the cash in money market funds when the Fed starts cutting rates.

https://awealthofcommonsense.com/2024/09/what-happens-to-the-money-market-cash-on-the-sidelines/
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