List of Brokers paying Interest on Uninvested Cash

ETJ said:
BROKERED CDs. NOT FREE CASH. Last WEEK THEY HAD SOME JPM PAYING OVER 5


Visit Find CDs for a detailed CD search experience
Schwab's Highest-Yielding CDs by Maturity

Maturity 1 Mo 3 Mo 6 Mo 9 Mo 1 Yr 18 Mo 2 Yr 3 Yr 4 Yr 5 Yr 10 Yr 20 Yr 30 Yr +
APY(%) 1 3.867 4.112 4.602 4.727 4.800 4.850 4.900 4.950 4.200 --
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The link is worthless unless you're already a Schwab customer.

But anyway, you'll notice the best yields are on callable CD's (at a specified starting point as an option to the issuer) . F that! Just make sure you screen those out. No use getting "the best rate" if it can be taken away from you before maturation. They'll most likely take it back when they find themselves on the losing end of the deal (relative to more favorable rates to them at that time in the future)
 
SteveH said:
The link is worthless unless you're already a Schwab customer.

But anyway, you'll notice the best yields are on callable CD's (at a specified starting point as an option to the issuer) . F that! Just make sure you screen those out. No use getting "the best rate" if it can be taken away from you before maturation. They'll most likely take it back when they find themselves on the losing end of the deal (relative to more favorable rates to them at that time in the future)
More...

And with the Fed rumored to be going easy on QT, the rate is very likely to drop. USD is already losing strength. That callable feature sucks.
 
Robert Morse said:
With today's CD and T-bill rates, I do not see the advantage of the CD. Most T-bill rates of the same duration are higher and are not taxable by the state. T-bills are marginable and I expect CDs are not.
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When rates are rising in a trend, shorter term Treasuries are preferred over CDs. However, when they are falling, CDs are preferred. Why? CD's generally lag Treasuries on the way up and down. So you'll tend to get better rates on CD's in a falling interest rate market. Or, maybe better said, you'll have more time to purchase a CD at a better Treasury rate as the Treasury rates are trending down.

I understand what the OP asked and wanted in replies, but this key distinction may help someone else decide how to get a better guaranteed fixed rate of return in a sharply declining interest rate environment.
 
I can't say I agree, but besides the "best rate" for any term, the questions was List of Brokers paying Interest on Uninvested Cash. I assume at some point David would like to invest the cash and have it available for day trading or investing with little notice. A Money Market Fund I think meets that best, even if it pays a little lower rate. It is highly marginable, settles in one day and can stay in a margin account. The CD will not be marginable or sit in a margin account and a T-bill when you sell it before it settles, can lose money. If David only wanted to make a fixed rate investment for a term without using it for trading, I have chosen to buy T-bills in varying duration from Treasury Direct and the balance that I might need for emergency funds in a high yielding savings account. However, those funds were always set aside for riskless investing and will never be used for a stock portfolio. That will not fit his needs as asked.

SteveH said:
When rates are rising in a trend, shorter term Treasuries are preferred over CDs. However, when they are falling, CDs are preferred. Why? CD's generally lag Treasuries on the way up and down. So you'll tend to get better rates on CD's in a falling interest rate market. Or, maybe better said, you'll have more time to purchase a CD at a better Treasury rate as the Treasury rates are trending down.

I understand what the OP asked and wanted in replies, but this key distinction may help someone else decide how to get a better guaranteed fixed rate of return in a sharply declining interest rate environment.
More...
 
SteveH said:
However, when they are falling, CDs are preferred. Why? CD's generally lag Treasuries on the way up and down. So you'll tend to get better rates on CD's in a falling interest rate market. Or, maybe better said, you'll have more time to purchase a CD at a better Treasury rate as the Treasury rates are trending down.
More...

If you buy treasuries and rates drop, then you'll have capital appreciation on your treasury due to the change in rates. If I buy a CD from my local bank, I suspect that they will not let me trade it. I don't know anything about CDs, never saw the point in owning one vs. treasuries when considering points mentioned here.
 
Robert Morse said:
I can't say I agree, but besides the "best rate" for any term, the questions was List of Brokers paying Interest on Uninvested Cash. I assume at some point David would like to invest the cash and have it available for day trading or investing with little notice. A Money Market Fund I think meets that best, even if it pays a little lower rate. It is highly marginable, settles in one day and can stay in a margin account. The CD will not be marginable or sit in a margin account and a T-bill when you sell it before it settles, can lose money. If David only wanted to make a fixed rate investment for a term without using it for trading, I have chosen to buy T-bills in varying duration from Treasury Direct and the balance that I might need for emergency funds in a high yielding savings account. However, those funds were always set aside for riskless investing and will never be used for a stock portfolio. That will not fit his needs as asked.
More...


Robert is absolutely correct in what I am looking for. Higher interest rate on cash balance with the continued ability to still daytrade, both longing & shorting.
 
Fixed Wells Fargo & Co SD 4.65% CD 09/05/2023
9497634D5

Most of the brokered CD market is fairly similar

JPM and WF are about 4.6 for tradeable cash this AM and naturally, scale pays a better yield.

The WF CDs show a dozen folks' b/d's offering before the list truncates. Make a friend with a Bloomberg terminal to view competitive offerings

Obviously, the size market is superior. But you're probably dealing with a broker carving up the size market.
























 
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