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Highest Brokered CD Rates As Of 01/28/2025

Kirkland
  |     |   377 posts since 2014

As of 5 pm ET 01/28/2025, here are the highest rates 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, 5-year, and 10-year:

3-month: 4.35% (Bangor Savings Bank ME, First Business Bank WI, Mizrahi Tefahot Bank CA, State Bank of India NY)

6-month: 4.30% (Mizrahi Tefahot Bank CA)

9-month: 4.25% (Burke & Herbert Bank & Trust Company VA – monthly, Dogwood State Bank NC – monthly, Merrick Bank UT - monthly)

1-year: 4.25% (Merrick Bank UT - monthly)

18-month: 4.25% (Merrick Bank UT – monthly)

2-year: 4.30% (MSB, MSPB)

3-year: 4.30% (Merrick Bank UT - monthly)

4-year: 4.25% (MSB, MSPB)

5-year: 4.25% (MSB, MSPB)

10-year: 4.20% (Apex Bank TN – monthly)

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, weekly 4-week T-bill auctions most recently yielding investment rates: 4.339%, 4.313%, 4.318%, 4.339%, 4.334%, 4.303%, 4.313%, 4.476%, 4.630%, 4.609%.

Current Money Market yields as of 01/27/25 at Vanguard are (VMFXX (Settlement fund) 4.28%, VUSXX 4.29%, VMRXX 4.30%).

As of January 22, 2025, ICI reported to the Federal Reserve that $6.90 trillion of cash is parked in money market funds. This is an increase of $41.65 billion from the prior week.

Highest non-callable, new-issue brokered 2-year and 3-year cd rates have risen and are now higher than today’s U.S. Treasuries rates.

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Kirkland
  |     |   377 posts since 2014
With highest Vanguard cash (VMRXX) current money market yield at rate of 4.30%, 4.30% payable monthly via a non-callable, new-issue brokered CD is looking interesting. Just appearing now, is listed available EagleBank MD, offering at Charles Schwab brokerage, 4.30% payable monthly at 2-year, 3-year and 5-year terms.

Only thing missing from the 5-year is a term premium. The term premium is the extra return investors receive for holding long-term bonds instead of short-term bonds. It’s the compensation investors demand for taking on the risk that interest rates may change over the life of the bond.

It could be that both the 50 basis point cut Sept 18 and the 25 basis point cut Nov 7 have already filtered through the economy. Only the 25 basis point cut Dec 18 has not yet filtered. And of course that is monetary policy. We have no idea what or how fiscal policy will affect inflation, expectations.
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