90-day Treasury Bill Yields vs. 90-day CD Rates

The 90-day Treasury Bill is yielding only 2.64% after large-scale buying of U.S. Treasuries. The rally in short-term Treasuries has been the largest since 1987 and represents an international flight-to-quality. Typically banks reset their own deposit rates based on action in the Treasury markets, but this has not occured yet after the recent freefall in yields of short-term Treasury bills. Either banks see the drop in yields as temporary or are pressured for deposits enought to need to keep rates attractive, but either way savings investors are benefitting with some good rate offers on the 90-day term. Listed below are some of Friday’s highest 90-day CD annual percentage yields offered by FDIC-insured banks. These yields offer a very significant spread over U.S. Treasury Bills, a gap which savings investors may not see again.

UniBank, 5.65%, 1K minimum

Security Savings Bank, 5.25%, 10K minimum

More information and links to banks here