Dedicated to Deposits: Deals, Data, and Discussion

Countrywide Bank Raises 12-month CD Yield to 4.20%

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After yesterday's big Fed rate cut, it's a surprise to see Countrywide Bank increase the rate on its 12-month Internet CD from 3.50% to 4.20% APY. The 6-month CD rate remains unchanged at 4.05% APY. This 12-month CD also seems to be available at Countrywide Financial Centers. Please refer to the CD rate table for more details.

Details of Countrywide CDs are listed in their account disclosure (pdf) starting on page 17. Last month Countrywide ended the feature that allowed you to make additional deposits to a CD during the first 30 days. They still give you a period of 10 days to fund the CD after you apply online when you'll be guaranteed the CD rate at the time of the application. A few readers have commented that they didn't receive the rate at the application time when they sent in the check with the documentation they received in the mail from Countrywide. It appears that you should send in the check without waiting for the CD documentation from Countrywide if you want to ensure the check is received before 10 days.

The easiest way to close a CD at maturity is to also have a Countrywide savingslink account. A few readers have commented that they were able to have Countrywide transfer the CD funds into their savingslink account very easily. Once in the savingslink account, you can initiate a fast ACH transfer to any of your accounts at other banks. The savingslink account has a minimum opening deposit of $1,000, but it has no balance requirements or monthly service charges after it's opened.

Other CD details include:
  • 91 days of interest early withdrawal penalty for terms under 12 months.
  • 180 days of interest early withdrawal penalty for terms of 12 to 60 months.
  • Grace period at maturity when you can close without penalty is 10 calendar days
  • No hard credit inquiries for opening CDs or savings accounts
  • CD funding options: mail a check, wire transfer, or drop off check at a CW financial center. ACH funding for a CD is not an option.

Countrywide Bank Risks

With news of Countrywide being investigated by the FBI for possible securities fraud (see ABC News article), there's growing concern that Bank of America's acquisition of Countrywide might not be a sure thing. Thus, 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 Marc who mentioned these CD rates in the finding-the-best-deals post.
  Tags: CD rates, IRA rates

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Comments
8 comments.
Comment #1 by grobe (anonymous) posted on
grobe
The Savingslink account is down to 3.25% over $10,000 and a miniscule 1% under $10,000.kzl

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Comment #2 by Anonymous posted on
Anonymous
Incorrect:

2.95% 3.00% 3.97% 4.05% 3.97% 4.05% 3.97% 4.05% 3.97% 4.05%

Still at 4.05% for 10k minimum.

1
Comment #3 by Anonymous posted on
Anonymous
According to this morning's Orange County Register the 4.20% 12-month CD is available at California Financial Centers only.

1
Comment #4 by Anonymous posted on
Anonymous
All the postings here are false.

4.20 for 12 mths is available in my market in NYC over the internet.

The 4.05% rate tier is also still in effect for savingslink.

1
Comment #5 by Anonymous posted on
Anonymous
https://bank.countrywide.com/landing/cd3.aspx?src=HLCDA001D002

4.20% Internet CD for 12 months.

https://bank.countrywide.com/landing/sl2.aspx?src=HLSLA001D002&tier=10000

4.05% Savingslink 10k min.

All rates are effective as of today March 19, 2008.

1
Comment #6 by grobe (anonymous) posted on
grobe
Sorry, I read the wrong link. No change yet in Savingslink account.

1
Comment #7 by Anonymous posted on
Anonymous
And of course there remains the age old problem at time of maturity of getting your money out cleanly. I have money at CWB now, but I plan to stay clear after my next maturity regardless the interest rate offered. They are just too far over the edge for my comfort. Hopeless.

1
Comment #8 by Anonymous posted on
Anonymous
1 year CD's are a bad hedge because rates will likely head back up.

I am thinking of splitting my countrywide cash into a short term CD and the savingslink account. Spoke to countrywide who said I could use my savingslink to fund a cd with them.

1