Website AdvisorHub posted an article entitled, "UBS Woos Cash with Sky-​high 3% One-​Year CD," which tells us, "UBS Wealth Management USA has stuck its tongue out at bank and other competitors with a 3% teaser rate on a one-​year certificate of deposit, but some of its brokers are upset at the way it marketed the promotion. The Swiss-​owned broker-​dealer'​s rate on its proprietary CD tops all competitors, according to Bankrate Monitor, and is almost 50 basis points higher than the 7-​day yield on top-​returning money-​market funds and 60 basis points above the 2.​42% rate on a 3-​year U.​S. Treasury note as of Tuesday morning. UBS is offering the deal only to customers who have more than $​10,​000 in their household accounts, and the CDs must be funded with new money. Several brokers said the five-​week promotional rate, which ends next week and requires a minimum investment of $​10,​000, is an attempt to increase net new assets, particularly in the first quarter when wealthy people often draw down their accounts to pay tax bills." The piece quotes Crane Data'​s Peter Crane, "Cash is becoming a battlefield among brokerages, because they'​ve gone as low as they can with commissions and index funds.... Brokerages are looking at Goldman and all those fintech firms attacking their space, and saying, '​We'​ve got to start losing money, too.'" It explains, "`​He speculated that UBS'​s teaser rate may be responding to the high money-​market rates that Goldman Sachs has been offering with its new Marcus consumer-​banking push.... To be sure, broker-​dealers have been generating wide profit spreads with revved-​up programs that automatically sweep client cash into low-​interest bank accounts. using the money to fund mortgages and other loans to their wealthy customers."

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