YIELD SHOPPER By Financial Planning Hawaii JULY 2026

John Robinson |

Yield Shopper is a service for helping Financial Planning Hawaii Clients keep abreast of current yields on money market funds, high yields savings accounts, CDs, treasuries, agency securities, municipal bonds, corporate bonds, and other popular fixed income investments.

 

JR’s Two Cents on the Fixed Income Marketspace - July 2026

The most noteworthy yields in the current issue are the 6-month to 5-year CD rates, which have quietly been creeping higher over the past few months. Yields have a bit more to go before equaling their October 2023 peak, but they are already within spitting distance. 
 
I believe rates will continue to edge higher, but I am perfectly okay locking in CDs as far out as two years. It is also worth mentioning that 5% yields are back on the menu at the 5-year maturity rung of the bond ladder for callable government agency securities.
 
Sue and I are proactively encouraging clients to shift dollars out of money market funds and into CDs, especially in retirement accounts. Please do not hesitate to reach out to us  if you wish climb on the CD bandwagon too.
 

HERE IS A SNAPSHOT OF FIXED INCOME RATES AS OF THE FIRST WEEK OF JULY 2026

Yields on CDs, Bonds, and Agency Securities from Charles Schwab July 2026

Source:  Charles Schwab fixed income trading desk.

*The Taxable Equivalent Municipal AAA Yield is calculated from the Municipal AAA Yield, and assumes a 35% federal tax rate. This does not reflect the effects of any state or local taxes, which, if applicable, may increase the taxable equivalent yield. For questions about calculating your individual rate, see your tax advisor. The following formula is used: Taxable Equivalent Municipal Yield = (Municipal AAA Yield) / (1.00 - 0.35).

In reviewing the yields in the table above, investors should keep in mind that the interest paid on treasury securities and certain government agencies (e.g. Federal Home Loan Bank, Federal Farm Credit Bank, and Tennessee Valley Authority) is exempt from state income tax.  Interest from most (but not all) municipal bonds is exempt from federal income tax. Federally tax exempt municipal bonds issued within your residence state (or issued by U.S. territories such as Guam and Puerto Rico) are generally exempt from state income tax as well. Interest paid Certificates of Deposit, Corporate Bonds, and annuity contracts is subject to federal and state income tax. In comparing yields between these securities it may be necessary to calculate the tax-equivalent yield. 

Taxable Equivalent Yield Calculator (Source: Fidelity)

Money Market Funds 7/12/2026

Fund Name & Symbol

7-Day Yield

Link to Fact Sheet & Prospectus

Schwab Prime Money Market Fund (SWVXX)

3.46%

Fact Sheet & Prospectus

Schwab U.S. Treasury  Money Fund (SNSXX)

3.39%

Fact Sheet & Prospectus

Schwab U.S. Treasury Money Fund (Ultra Shares) SUTXX

3.53%

Fact Sheet & Prospectus

Fidelity Prime Money Market Fund (SPRXX)

3.35%

Fact Sheet & Prospectus

Fidelity Treasury Only Money Fund (FDLXX)

3.32%

Fact Sheet & Prospectus

Vanguard Cash Reserves Fed MMF (VMRXX)

3.56%

Fact Sheet & Prospectus

Vanguard Treasury Money Fund (VUSXX)

3.64%

Fact Sheet & Prospectus

 

High Yield Savings and CD Rates from Bankrate.com as of 12-July-2026

 

Readers will do well to compare the yields from these banks featured on Bankrate.com to the yields on CDs in the Schwab table above.  There is a popular misconception that the yields on CDs are higher at online banks than on brokered CDs available through Schwab, Fidelity, and Vanguard.  While there are occasionally individual banks that may offer a special rate that is nominally higher, for the most part, brokered CD rates are extremely competitive when compared to the online bank market space.

Always remember:  Friends Don't Let Friends Buy Bond Funds (or ETFs)

Readers of my commentary know I do not ever recommend bond mutual funds or ETFs.  The primary reason for this position is I believe the risk-free portion of client portfolios should truly be risk-free.  Individual bonds and CDs are generally regarded as risk-free if held to maturity.  Bond mutual funds and ETFs cannot provide such assurances.  In a rising interest rate environment, investors are often unpleasntly suprised by the decline in value of the so-called "conservative" bond funds in their reitrement accounts.  

I have written many articles on this topic. This position is echoed by retirement researcher and financial  planning industry thought leader Wade Pfau, PhD, CFA.  Links to Wade’s commentary on this topic are as follows:

3 Ways to Incorporate Bonds Into Your Retirement Strategy (Retirement Researcher)

Why Bond Funds Don’t Belong in Retirement Portfolios (Wade Pfau, Advisor Perspectives)

Laddering with Individual Bonds (Retirement Researcher)

 

John H. Robinson is the founder of Financial Planning Hawaii and Fee-Only Planning Hawaii and a co-founder of retirement simulation software, Nest Egg Guru.