WaMu Increases Online Savings Account Rate to 4.0% APY

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Washington MutualWaMu failed and was acquired by JPMorgan Chase, if you don’t have an account yet, I recommend going with FNBO Direct or one of these high yield savings accounts.

Washington Mutual sent me an email today indicating that they will be increasing their high yield savings rate from 3.75% APY to 4.00% (at midnight tonight, if you read this on Monday), which will beat all the banks on my list of best online savings accounts by at least half a percent (FNBO Direct is second with a 3.50% APY interest rate).

Nothing else will change about either the Free Checking or the Savings account offer, you can read my brief WaMu review to learn more about the accounts.

There have been concerns lately that WaMu was facing some liquidity concerns (mostly in the chaos that was last week, but the FDIC did send a MOU) but they are FDIC insured up to the same $100,000 as every other insured bank. WaMu benefits from the fact that its short term financing can come from deposits, rather than short term borrowing, so it’s not as exposed as investment banks. If the liquidity issue still concerns you and you don’t trust that FDIC will make you whole (it will), your next best option is FNBO Direct with a 3.50% APY rate or opening a CD somewhere else. I haven’t read a single thing about them having problems and they too are FDIC insured.

{ 7 comments, please add your thoughts now! }

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7 Responses to “WaMu Increases Online Savings Account Rate to 4.0% APY”

  1. aa says:

    Bankruptcy is near with the rate hike…

  2. Frugal Dad says:

    So the rate hike is an effort to draw new deposits? I wonder if it will work given the troubling news on WaMu here lately. I have to admit, the 4.0% rate is tempting!

  3. jim says:

    It’s all FDIC insured so I don’t see a reason to say no to 4.0% (unless your money is already at 3.50% or 3.25%, because the transit time negates any additional interest).

  4. EN says:

    ^I agree. I haven’t received that email yet but the rate hike is good news for me and FDIC makes it all peachy.

  5. kim says:

    Does this APY only apply to new accounts? or to existing accounts as well?

  6. jim says:

    It will apply to all accounts, new and existing.

  7. Whoo hoo says:

    Whoo hoo!

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