As of 11 am EST 9/18/2024, 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: 4.90% (Merchants Bank of Indiana IN, Mizrahi Tefahot Bank CA)
6-month: 4.60% (Live Oak Banking Co NC - monthly, PCB Bank CA), 4.55% (BofA)
9-month: 4.35% (Live Oak Banking Co NC - monthly), 4.25% (BofA)
1-year: 4.15% (Live Oak Banking Co NC - monthly), 4.10% (Santander Bank NA DE), 4.00% (BofA, MSB, MSPB)
18-month: 3.90% (MSB, MSPB)
2-year: 3.80% (Ally Bank UT, MSB, MSPB)
3-year: 3.75% (Ally Bank UT)
4-year: 3.65% (Celtic Bank Corp UT- monthly)
5-year: (N/A)
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: Very few brokered cd’s available this week, while awaiting Fed rate decision. 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. 5.25% APY CDs are still available direct for durations of 1-year at Merchants Bank of Indiana and Mountain America Credit Union.
For those staying liquid, expecting a one and done recalibration cut later today, or expecting gradual cuts over the 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: 5.053%, 5.171%, 5.263%, 5.335%, 5.355%, 5.381%, 5.381%, 5.381%, 5.365%, 5.365%.
As of September 11, ICI reported to the Federal Reserve that $6.32 trillion of cash is parked in money market funds. This is an increase of $23.37 billion from the prior week. Current Money Market yields at Vanguard are (VMFXX (Settlement fund) 5.19%, VUSXX 5.15%, VMRXX 5.20%).
