Dedicated to Deposits: Deals, Data, and Discussion

Countrywide's 12-Month CD Yield Raised to 5.70% in California

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Countrywide Bank is now offering a 5.70% APY 12-month CD at its California financial centers (see rate table). I reported last Wednesday that the 12-month internet CD yield was increased from 5.50% to 5.65% APY. This 5.65% is also being offered at financial centers outside of California. For more details about Countrywide CDs, please refer to my Wednesday post.

There has been some speculation about why Countrywide is raising their CD rates again. The rates had fallen near the end of September. Some more recent bad publicity has come up such as the questionable stock trades made by the CEO (see LA Times article). As I mentioned in my previous post, it seems prudent to stay below the FDIC insurance limits. Note, there are many ways to extend your FDIC coverage over $100K. However, you have to be careful, especially if you use POD's. Please see this post for more info.

To review Countrywide Bank's FDIC information, please see their FDIC page.

Thanks to the readers who emailed me the rate update.

  Tags: California, CD rates

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Comments
3 Comments.
Comment #1 by Anonymous posted on
Anonymous
Any speculation on why Countrywide "discriminates" against non-California residents when it comes to CD rates? Ironic, given their name ... (and their situation ...)

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Comment #2 by Anonymous posted on
Anonymous
They probably give Californians a better rate because there's more publicity here about their bad points, being as they are headquartered here.

Many banks discriminate amongst locations. Any time you see "enter your zip code here" they're going to give you different rates depending on your residence or the location of the branch.

1
Comment #3 by Anonymous posted on
Anonymous
Also, note that you can get 5.65% from Countrywide's SavingsLink, with no requirement to tie up your funds for 12 months, IF you have a balance of more than $250,000. (At these balance amounts, it is essential that you structure FDIC insurance to cover all your funds.)

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