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WaMu CD Rate Update: 5.00% APY, 12-Month CD

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WaMu ATMUpdate: The 5.0% APY Online CD is no longer available and the rates quoted in this article are out of date – read this list of best CD rates for current rates.

A month or so ago, Washington Mutual (WaMu) offered a 5.00% APY 12-month CD, one of the best interest rates on a 12-month CD available (I wrote a post listing the best CD rates available, updated weekly). ING Direct’s 12-month CD is 4.00% APY and HSBC Direct’s 12-month CD is 3.70% APY, WaMu is offering a rate that’s a full point higher for the same term. (If you check Bankrate’s list of CDs, the national overnight average is 3.69% APY, WaMu’s CD isn’t even listed)

Right now I have some CDs at ING Direct because I laddered our emergency fund, but the rates are all in the 3%’s only recently have they gone up. The rates these days are far more competitive and I’ll be opening a WaMu account so I can take advantage of the one-two punch of a high yield checking/savings account combo and this 5.00% APY CD.

While I’m pretty sure you don’t need a checking/savings account to open a CD, I think it’d be easier to use their 3.75% APY checking account as a holding account. It certainly trumps my piddly 0.00% APY checking account for sure. Plus, having a checking account there costs nothing (except time) and it makes it easier for me to move things around if WaMu keeps things competitive.

Details of the offer:

  • 12-month and 13-month terms offer 5.00% APY.
  • Here is a detailed listing of their fees, though I don’t see anything about CDs.
  • The minimum to open a CD is $1,000.
  • An early withdrawal penalty applies, though I couldn’t find it. I’d bet it’s the standard 90-day interest lost.
  • The account is managed entirely online, you won’t be able to visit a branch to open one.

(Photo: thetruthabout)

{ 6 comments, please add your thoughts now! }

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6 Responses to “WaMu CD Rate Update: 5.00% APY, 12-Month CD”

  1. bigdon says:

    The 5.00% was a one month promotion that eneded 9/1. They still offer a 12-mo. at 4,5% .

  2. jim says:

    bigdon – It says “Rates effective 09/08/2008.”

  3. bigdon says:

    Jim- You are correct. the aug. rate ended 8/29 and new rate started 9/8. I’m glad I read your article this morning. I was able to get the 5.0% instead of the 4.5% that I created last week.

  4. jim says:

    Awesome! Glad I was able to help.

  5. ralph says:

    Anyone here concerned with the possiblity of WAMu going bankrupt since it was rated junk bond status as of 9/15/08?

  6. Scott says:

    Ralph- yes I am. WaMu is offering above market rates for a reason. Why? Need for cash? Anytime a place is significantly above going rates that is red flag territory. I know, But it is FDIC insured. Yes, it is. However, Indymac aside, if Wamu goes down then what? I have no desire to fill out an FDIC claim form and then wait how long for my money. Do I get interest while I wait? (no)

    Seriously, Maintain FDIC at all times, watch you registration types, single, joint, trust, know the FDIC rules and buyer beware.

    Good Luck


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