Dedicated to Deposits: Deals, Data, and Discussion

5.50% 6-Month Online CD at WaMu

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Update 9/01/07: This 5.50% 6-mo CD has ended. Please see WaMu's Online CD rate page for the latest rates.

Washington Mutual has just started offering 5.50% APY for a 6-month term on its Online CD.The minimum deposit is $1,000.

The CD can be funded via an ACH transfer from an external account or from funds from your existing WaMu checking or savings account. I was told by a service rep in March that you can call to close the CD and have the funds transferred back into the funding account.

WaMu seems to be heavily pushing these Online CDs lately. Just a few weeks ago WaMu was offering 5.35% APY on all terms of its Online CDs. When there are no specials, there always seems to be a few terms with decent rates. But there are also a few terms with very low rates. For example, the 24-month CD yield is currently only 3.70% APY. So when the CD matures, you should definitely not let it automatically renew without reviewing the current rates.

WaMu still offers a 5% no-minimum online savings account when you also open its checking account online (see post).

WaMu is one of the banks that is being hurt by the mortgage problems. Some others include Countrywide and Indymac. Like WaMu, both Countrywide and Indymac have just come out with some nice CD deals (Countrywide post and Indymac post). You have to wonder if these deposit specials are attempts to increase their liquidity sources to provide a cushion to their mortgage businesses.

WaMu is FDIC insured under two banks (Washington Mutual Bank FSB and Washington Mutual Bank).

  Tags: CD rates

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