As of 3 pm ET 01/02/2025, here are the highest rates from today at either Charles Schwab brokerage and/or Vanguard brokerage for non-callable, new-issue brokered CDs with terms of 1-month, 3-month, 6-month, 9-month, 1-year, 18-month, 2-year, 3-year, 4-year, and 5-year:
1-month: 4.25% (Leader Bank NA MA, Oriental Bank San Juan PR, Pathward NA SD)
3-month: 4.30% (Kearny Bank NJ), 4.25% (Northpointe Bank MI)
6-month: 4.20% (Meridian Bank PA), 4.15% (BofA, GSB, PNC Bank NA PA)
9-month: 4.10% (BofA, GSB)
1-year: 4.10% (GSB)
18-month: 4.05% (Meridian Bank PA – monthly, MSB, MSPB)
2-year: 4.00% (GSB, MSB, MSPB)
3-year: 4.00% (GSB, MSB, MSPB)
4-year: 4.00% (State Bank Reeseville WI – monthly), 3.90% (UBS – monthly)
5-year: 4.00% (GSB)
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, here are the previous ten, including from today, weekly 4-week T-bill auctions most recently yielding investment rates: 4.339%, 4.334%, 4.303%, 4.313%, 4.476%, 4.630%, 4.609%, 4.589%, 4.594%, 4.660%.
As of December 31, 2024, ICI reported to the Federal Reserve that $6.85 trillion of cash is parked in money market funds. This is an increase of $42.05 billion from the prior week. Current Money Market yields as of 12/31/24 at Vanguard are (VMFXX (Settlement fund) 4.39%, VUSXX 4.41%, VMRXX 4.42%).
Recent new issue Treasury note auctions, are yielding much higher rates than today’s best available non-callable, new-issue brokered cd’s. For examples, the recent coupon interest rate and yield to maturity at Treasury auction were as follows:
2-year note: 4.250%, 4.335%
5-year note: 4.375%, 4.478%
7-year note: 4.500%, 4.532%
Notes pay a fixed rate of coupon interest every six months until they mature. All successful bidders get the same rate, yield, or discount margin as the highest accepted bid. You may buy these Treasury Notes through TreasuryDirect.gov or your brokerage firm. You can hold a note until it matures or sell it before it matures. And for those subject to state and local taxes, Treasury interest is state and local tax free.
2-year, 3-year, 5-year, and 7-year note auctions are held monthly. 10-year notes are auctioned Feb., May, Aug., and Nov. You may want to begin by observing the next 3-year note auction, which will be auctioned early next week, with an issue date of 1/15/25. You may want to first visit TreasuryDirect.gov, for a tentative auction schedule of all upcoming U.S. Treasury Securities, schedule currently available through April 2025.
