Dedicated to Deposits: Deals, Data, and Discussion

5.50% 5-Month CD at Countrywide Bank Continues

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Countrywide Bank is still offering a "secret" 5.50% APY 5-month CD special that I first reported on November 28th. It's not listed at their website. They've been advertising it on TV in certain markets. I just called their toll-free number (1-800-283-8875) and verified that it's still available at least for Texas (it may vary by state). However, I was told it may end any day. The minimum deposit is $10,000. The application must be done by phone.

Other Countrywide Bank CD Rates

Last week, Countrywide was offering 6-month CD yields as high as 5.45% APY in some states, but the best yields now are no better than Countrywide's internet CD rate of 5.35% APY. However, you can get a higher yield of 5.50% APY in some states for the 3-month CD.

The 30-Day Additional Funding Feature

Countrywide Bank's CDs have some nice features that I've seen mentioned before. According to the CSR, you have 10 days after the application to fund the CD to guarantee the rate at the time of the application. This can be done by check or wire transfer. More importantly, they give you 30 days after the application to add more funds to the CD at the same guaranteed rate. You can add to it as much as you like. So this could be very useful if you're waiting on more funds to become available or if you're waiting for another potential CD deal (like at PenFed).

Countrywide Bank Risks

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 still being available in the comments.

  Tags: CD rates, IRA rates

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Comments
5 Comments.
Comment #1 by Anonymous posted on
Anonymous
Wish I would have known about that 30 day add on a week ago.

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Comment #2 by Anonymous posted on
Anonymous
The 3-month 5.50% CD is available at SoCal branches. Unfortunatly, I'm already about maxed out at Countrywide.

1
Comment #3 by Anonymous posted on
Anonymous
The 6 month CD special 5.55% APY in WA is valid till next Thursday. I just opened mine couple days ago.

1
Comment #4 by Anonymous posted on
Anonymous
Don't deposit at Countrywide banks and financial centers. Learn more about the national mortgage crisis and Countrywide's role in it. Visit www.dontdepositatcountrywide.info

1
Comment #5 by Anonymous posted on
Anonymous
As an existing Countrywide online savings account holder, I called last week to shift a portion of my funds into the 5.5%, five-month CD.

It was quick and easy..all done over the phone, no paperwork. Just asked the routine security questions to verify my request. Staying, of course, below the FDIC limit.

But, it's a nice deal, because it's a way to use near future spending money that earns pretty good interest without locking up the funds for a long time. Good short term investment, particularly when rates on savings accounts are likely to continue falling.

--John in Los Angeles

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