Comments on: WaMu Online Savings Account Rate Increase: 3.75% APY

By: Jackson

Jackson — Sat, 02 Aug 2008 18:10:44 +0000

This is really tempting… I’m currently at Countrywide (3.55%) and the transfers are really fast.

But now that Bank of America bought them I’m expecting their rates to drop…

By: Khyron

Khyron — Fri, 01 Aug 2008 04:45:12 +0000

I have to agree with Saladdin on this one.

http://alphaguy.blogspot.com/2008/07/thoughts-of-indymac.html

WM is asset gathering. Of course, that’s really the least of their problems in the first place, but… E*Trade Bank was doing the same thing recently, as was IndyMac a few months ago. A BankRate search showed (until recently it seems) that OneUnited was offering some insane APY was well. Asset gathering.

The problem is that all this asset gathering is just bringing in more funds for them to lend out, and hopefully make enough spread over all of the deposited funds vs. the lending that they can continue paying their bills. Yet the holes in their balance sheets have little to do with deposits; its mismanagement of their (read: shareholder) money.

I personally think WM or WB will go out of business by the time this is all done. Maybe asset gathering slows things down, but we see how well that has worked for everyone else. At least E*Trade has the brokerage business and the small lending operation. For WM and WB, its their lifeblood.

By: saladdin

saladdin — Fri, 01 Aug 2008 00:30:12 +0000

I think this is less a sign of interest rates and more that these guys are in “trouble” and with people pulling money out they have to find a way to get more dough. Check out their stock price.

saladdin

By: jim

jim — Thu, 31 Jul 2008 20:06:09 +0000

Whoops, typo, for some reason I thought FNBO and HSBC were at 4.50% (they’re not, they’re at 3.50%). Yikes. Thanks Cameron, I made the correction.

By: Cameron

Cameron — Thu, 31 Jul 2008 19:59:12 +0000

I can’t figure out this line: “this still lags against 3.50% APY rate leaders FNBO Direct and HSBC Direct.”

Why does 3.75% APY lag against 3.50% APY?

By: ebow

ebow — Thu, 31 Jul 2008 16:23:08 +0000

C’mon ING, why are you still at a measly 3.0% APR?