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5.10% 6-Month Online CD at WaMu - Plus Updates on WaMu's Savings Accounts

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Washington Mutual just recently increased the yield on its 6-month Online CD from 5% to 5.10% APY. The minimum deposit is $1,000, and the maximum is $250,000.

Every now and then WaMu bumps up the rates on these Online CDs. In August this 6-month CD yield had been 5.50%. The 5.10% isn't that great, but it is competitive in today's rate environment.

I just called WaMu's customer service rep, and I was told that there's no hard credit pull. They only do a ChexSystem verification. To fund the CD, you can do an ACH transfer from another bank (you supply your bank's routing and account number) or you can have the money transfered from your existing WaMu savings or checking account. For this second option, I was told that you must first log into your account, and then open the CD. This will allow you to link the CD to your account and fund it with a transfer from your WaMu savings or checking.

At maturity of the certificate, there's a 10 day grace period in which you can close the CD without a penalty. They cannot do an ACH transfer out of the CD into another bank account, even the one used to fund the CD. This is different than what I reported being previously told, but I believe this latest info is correct since several readers have reported difficulty in receiving funds from a matured WaMu CD. You can request to have them transfer the funds to your WaMu savings or checking account.

WaMu Online Savings and Free Checking Account

So if you decide to open a WaMu Online CD, you might also consider their Online Savings Account. It currently pays 4.75% APY, and it has no monthly fees or minimum balance requirements if it's linked to WaMu's Free Checking account. The Free Checking also has no monthly service charges. It has several nice features such as free checks and free outgoing wire transfers (which can come in very handy to fund CDs at other banks).

Savings for Success Update

I did get confirmation that the rates on the Savings for Success account dropped by 50 basis points. The new rates are 6.50% APY for Texas and Illinois, and 5.50% APY for Georgia and Washington State. When I was told about this program in July, they said they expected to roll this program out to the other states later in 2007. With 2007 nearing an end, it looks like they changed their minds. For details about this Savings for Success program, please refer to this previous WaMu deals post.

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

Thanks to the reader Shrazzy who mentioned this CD rate update in the finding-the-best-deals post.
  Tags: CD rates, savings account

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Comments
9 comments.
Comment #1 by Simon Says (anonymous) posted on
Simon Says
The WAMU site claims a minimum average balance must be $300 to avoid fees for the Online Savings Account. I have it linked to the Free Checking Account, do I still need to maintain the $300 minimum average balance to avoid the fee?

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Comment #2 by ShraZZy (anonymous) posted on
ShraZZy
if you link the wamu checking to the wamu online savings account, there is no minimum requirements and you get the high rate of currently 4.75% APY.

1
Comment #3 by Anonymous posted on
Anonymous
I just open a cd with them for 5.2 apy for 7 month. It requires a free checking with them. There were no display, could be a local promo (NY).

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Comment #4 by Anonymous posted on
Anonymous
how much time do I have to fund my account after it has been opened?

According to the Online people, I have 30 days and the guy I talked to checked with management and they said that you are locked into that rate for those 30 days, unless the interest goes up. That sounds too good to be true. Any thoughts?

thank you

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Comment #5 by Anonymous posted on
Anonymous
I just spoke with the csr in wamu at my branch and the 7 month 5.10 apy cd is still available while many banks have just droped there rates. so i decided to lock in this rate. wish it was for a longer term....

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Comment #6 by ShraZZy (anonymous) posted on
ShraZZy
I just found out that when a CD matures, on the account summary you will see a big bold text saying: “This CD has reached its Maturity Date!” under the matured. They give you a bunch of information and even let you close and transfer to your checking/savings. AWESOME! WAMU is becoming a nice online site.

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Comment #7 by Banking Guy (anonymous) posted on
Banking Guy
Thanks shrazzy for the info. Glad to see WAMU has made the online CD management process easy.

Does the transfer option include transfer to your non-WAMU checking/savings account? (the account used to fund it?) Or does it just allow transfer to your WAMU checking/savings account?

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Comment #8 by ShraZZy (anonymous) posted on
ShraZZy
I believe the option was just for accounts inside of WAMU. The transfer is instant so you can move it from your checking to the external source afterwards.

1
Comment #9 by Banking Guy (anonymous) posted on
Banking Guy
Thanks for the info. For those with CDs, it's definitely worthwhile to get their free checking and savings account to make it easy transfer out the CD funds.

1