Dedicated to Deposits: Deals, Data, and Discussion

5.50% 5-Month CD at Countrywide Bank

POSTED ON BY

Countrywide Bank has a 5.50% APY 5-month CD special that's not listed at their website. A reader mentioned seeing this advertised on TV yesterday. According to the reader, he called and was able to open the CD and have it funded using money from his Countrywide Savingslink account. I just called their toll-free number (1-800-283-8875), and I was told that this special CD is still available. However, I had to give them my Texas zip code. The CSR said the rate may vary by state. Also, I was told that this special CD has to be opened by phone.

Countrywide is still offering 6-month CD yields as high as 5.45% APY in some states (and 5.55% APY at a Washington State branch). I had posted on these on Monday. The minimum deposit is $10,000.

With the issues Countrywide has been having in its mortgage business (see 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.

For more info on Countrywide's online savingslink account and CDs, please see this post.

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

Thanks to the reader who mentioned this 5-month CD in the comments.

  Tags: CD rates

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Comments
5 Comments.
Comment #1 by onpoint (anonymous) posted on
onpoint
I'm not keen on Countrywide Bank's deals..read up this article - (cut & paste the url below if hyperlink doesn't work)
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1216

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Comment #2 by Anonymous posted on
Anonymous
These comments are spam - ads for another website - and have nothing to do with Countrywide Bank deals and should be deleted. JMHO.

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Comment #3 by Snippy (anonymous) posted on
Snippy
I think that anonymous@2:12pm is half wrong and half right: The lengthy second comment (above) is not an advertisement, but the text of a financial pundit's op-ed article that can be viewed by following the truncated hypertext link (URL) in the first comment. Therefore, the first and second comments are not spam, but they are indeed irrelevant because they are concerned with the concept of investing in Countrywide stock, and NOT with the topic of investing funds in a time deposit (i.e., CD) offered by Countrywide Bank. I just opened a 9-month Internet CD with them and might open a 6-month CD at the higher in-branch rate if I can arrange to do so (they're only open Mon-Fri when I'm at work). As long as the total amount you invest with Countrywide Bank is within the limits covered by FDIC protection, then if Countrywide is forced to declare bankruptcy, I think the worst that is likely to happen is that you will have to wait several days to obtain the balance of your CD from the FDIC or whichever bank might be assigned to administer Countrywide Bank's accounts. Banking Guy, if I'm wrong on this, please step in and correct any unintentional misinformation.

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Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
Sorry, I had to remove the 2nd comment. It was somewhat relevant to Countrywide Bank deposits, but my main concern is copyright infringement. Here's the link to the full article.

Depositors in Countrywide's bank accounts shouldn't have to worry about their deposits if they're under the FDIC limits. As I mentioned in this post, the FDIC has proven itself on this matter.

But I understand some readers would prefer not to have to go through a bank closure even if they're deposits are covered by the FDIC. So I don't mind some discussion on a bank's financial health.

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Comment #5 by Anonymous posted on
Anonymous
Just wanted to keep this updated, but the deal is still alive. I opened another up today.

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