Short term C.D.

[lawman]

The best short term C.D. rate on Schwab today is one that matures 11/25/22 and has a YTM of 1.2%...Seems pretty good to me..How does that compare to what is available from other Brokerage firms?

 

[FIREd_2015]

The best short term C.D. rate on Schwab today is one that matures 11/25/22 and has a YTM of 1.2%...Seems pretty good to me..How does that compare to what is available from other Brokerage firms?

Why buy a 6 month CD at 1.2% when 6 month zero coupon Treasuries are paying 1.4%?

 

[RunningBum]

There's a whole thread on this that's very active.
https://www.early-retirement.org/fo...ead-2022-please-post-updates-here-112376.html,

 

[lawman]

Why buy a 6 month CD at 1.2% when 6 month zero coupon Treasuries are paying 1.4%?

That's a good example of the difference in brokerage offerings..Schwab's 6 month zero treasury has YTM of only .98%.
However the regular 6 month treasury is 1.4%

 

[FIREd_2015]

That's a good example of the difference in brokerage offerings..Schwab's 6 month zero treasury has YTM of only .98%.
However the regular 6 month treasury is 1.4%

I don't have a Schwab account but I'm guessing you're looking at the wrong info. Fidelity's site estimates the yield on the next new issue 6 month zero coupon treasury (auction date on Monday 5/16) will be 1.4%. Fidelity's estimate is usually conservative. My last couple of purchases were higher then their estimates. If Schwab is similar to TD Ameritrade's platform, it doesn't provide an estimate of the yield because the yield is determined after the auction. However, you can get an idea of what the yield will be by going to the treasury.gov site:

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202205

The yield should be the same regardless of which brokerage is used since it's a public auction. I've bought 6 month new issues in both my TD Ameritrade and Fidelity accounts in April and the yields posted after the auction were the same.

 

[lawman]

I don't have a Schwab account but I'm guessing you're looking at the wrong info. Fidelity's site estimates the yield on the next new issue 6 month zero coupon treasury (auction date on Monday 5/16) will be 1.4%. Fidelity's estimate is usually conservative. My last couple of purchases were higher then their estimates. If Schwab is similar to TD Ameritrade's platform, it doesn't provide an estimate of the yield because the yield is determined after the auction. However, you can get an idea of what the yield will be by going to the treasury.gov site:

https://home.treasury.gov/resource-center/data-chart-center/interest-rates/TextView?type=daily_treasury_yield_curve&field_tdr_date_value_month=202205

The yield should be the same regardless of which brokerage is used since it's a public auction. I've bought 6 month new issues in both my TD Ameritrade and Fidelity accounts in April and the yields posted after the auction were the same.

The zero was indeed .98%..I just purchsed a 6 month treasury YTM 1.443%

 

[jazz4cash]

The best short term C.D. rate on Schwab today is one that matures 11/25/22 and has a YTM of 1.2%...Seems pretty good to me..How does that compare to what is available from other Brokerage firms?

At Fidelity, the top rate is 1.2% for a 6 month CD that matures 11/28/22 from Banesco USA Bank and it is call protected.
Vanguard has same rate on a 6 month that matures 11/23/22.

 

[FIREd_2015]

The zero was indeed .98%..I just purchsed a 6 month treasury YTM 1.443%

I'll have to keep that in mind the next time I'm shopping for a new brokerage account. It'll be interesting to see what happens when my TD Ameritrade accounts are fully integrated/converted to Schwab.