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

Posted By Jim On 09/23/2008 @ 6:45 pm In Banking | 6 Comments

Update: The 5.0% APY Online CD is no longer available and the rates quoted in this article are out of date – read this list of best CD rates [3] for current rates.

A month or so ago, Washington Mutual [4] (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 [3] available, updated weekly). ING Direct’s [5] 12-month CD is 4.00% APY [6] and HSBC Direct’s [7] 12-month CD is 3.70% APY [8], 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 [9], 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 [10] 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 [11], 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 [12])


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[1] Tweet: http://twitter.com/share

[2] Email: mailto:?subject=http://www.bargaineering.com/articles/wamu-cd-rate-update-500-apy-12-month-cd.html

[3] best CD rates: http://www.bargaineering.com/articles/best-cd-certificate-of-deposit-rates.html

[4] Washington Mutual: http://www.bargaineering.com/articles/r/wamu.php?tag=5APYcdBack

[5] ING Direct’s: http://www.bargaineering.com/articles/r/ingdirect.php?tag=5APYcdBack

[6] 4.00% APY: http://home.ingdirect.com/products/products.asp?s=OCDHP

[7] HSBC Direct’s: http://www.bargaineering.com/articles/r/hsbcdirect.php?tag=5APYcdBack

[8] 3.70% APY: http://www.hsbcdirect.com/1/2/1/default/learn-more/ocd?code=CSM0000459&WT.ac=HBUS_CSM0000459

[9] laddered our emergency fund: http://www.bargaineering.com/articles/laddering-your-emergency-fund.html

[10] WaMu: http://www.bargaineering.com/articles"http://www.bargaineering.com/articles/r/wamu.php?tag=5APYcdBack

[11] detailed listing of their fees: http://www.wamu.com/NR/rdonlyres/E58D9C54-1024-49DE-878A-661CC5518942/0/OurFeesandFrees_060108.pdf

[12] thetruthabout: http://www.flickr.com/photos/thetruthabout/2668765545/sizes/s/

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