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4.25% 60-Month CD at Wachovia in Some States

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Wachovia Bank
Wachovia is offering a competitive 60-month CD in some states. It doesn't seem to be listed at Wachovia's website even if you enter in your zip code. A reader mentioned this to me, and I just called for additional details. I was able to confirm a 4.25% APY 60-month CD in a Florida and a New York zip code (CSR requires a zip code for a rate quote). The minimum deposit is $5,000, and a checking account may be required. The CSR said this rate is scheduled to last until April 28th, but there's no guarantee.

There's also a 3.15% APY 9-month featured CD with a $5K minimum in Florida. This is listed in Wachovia CD page. Other states may have different rates and terms.

Update 4/17/08: Wachovia also has a 4.10% APY 48-month CD with a $5,000 minimum deposit. This is only verified for Florida. It may be different in other states, and these special CDs do require a checking account.

The 60 month term is long when there's risk that inflation will soon force rates much higher. According to the CSR, the 60-month CD has an early withdrawal penalty of 6 months interest which is typical. The smaller the early withdrawal penalty, the less risk of losing out if rates shoot up.

The 4.25% yield is not the best for a 60-month term, but it's near the top of what's available in today's rate environment (see my latest rate summary). The fact that Wachovia is the fourth largest bank in the US by assets may be reassuring for those worried about the credit crisis. Wachovia's financials can be reviewed at their FDIC page.

Wachovia's Way2Save Program

Wachovia still has a decent deal for small balances with their new Way2Save Program. For the first year, you'll earn 5% APY on your balance and receive a 5% bonus on your ending year balance. Unfortunately, they limit how much you can deposit. The easiest way to deposit into this account is to set up monthly automatic deposits of $100. If you do this you'll make about $72 more over the next year than what you would earn in a 3% savings account. Please see my Way2Save review for more details.

Wachovia Checking Account Bonuses

I haven't seen any new online Wachovia checking account bonuses lately. They've often had online checking account bonuses for $50. Let me know if you see a new one. When they have a new branch, they'll often have a $75 checking account bonus at that branch. I've reported on a few of these over the last few months. Please see my Wachovia deals page for the latest promotions.

Wachovia still does have a $25 refer-a-friend bonus for opening a checking account.

  Tags: New York, Wachovia Bank, CD rates, Florida

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Comments
18 Comments.
Comment #1 by Cyclone (anonymous) posted on
Cyclone
Wachovia has been offering these 3 CDs in South Florida since March 10th (my rep called me about them and left a message) and they have been available since.

3.15% APY 9-mo
4.10% APY 48-mo
4.25% APY 60-mo

& 2.75% APY Money Mkt locked for 90 days (needs $10k of new funds)

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Comment #2 by Anonymous posted on
Anonymous
Good luck getting your money back out. I have a checking account so I can transfer the proceeds of matured CDs, but their external transfer system was unavailable Friday through Monday.

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Comment #3 by Michael (anonymous) posted on
Michael
I am a Wachovia customer.

The Wachovia online banking system underwent a major overhaul this past weekend. This is not a normal occurrence. Normally, Wachovia's online banking system is quite reliable.

Two months ago, Wachovia offered a 4% 90-day Money Market deal ($10,000 of new money required). Today they will offer just 2.75%. Sad.

Their 4.25% 5-year CD is just too long in duration, in my opinion. If the rate was 5%, I could understand taking the gamble.

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Comment #4 by Cyclone (anonymous) posted on
Cyclone
Michael,

Up until the 7th of this month, I was locked in at 5%! I was very much enjoying my rate spread as my loan has been funded on my existing house and I have yet to find the right new house at 4.75%. My interest earnings were greater than my mortgage payment!

But yeah. 2.75% is hard to eat against CountryWide's 4.05 or the 4+ 5+ 6+ Reward Checking accounts, but for a guaranteed rate for a local, accessible, national bank, it is decent. That being said, I only have up to the FDIC limit at Countrwide and am over at Wachovia.

Keep in mind that if you are over 59.5 and have a Wachovia IRA CD, there is no penalty for w/d. They are the same rate but w/ a $2k min instead of a $5k min.

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Comment #5 by Michael (anonymous) posted on
Michael
Well said, Cyclone.

Remember, though, the 2.75% is only guaranteed by Wachovia for 90 days. And you have to add $10,000 of new money (yes you can take out that extra $10K at any time.) And then at the end of the 90 days, you have to renegotiate with Wachovia, and then add another $10K or else the rate will drop below 2%.

Regarding FDIC limit: Please forgive me if you already know this. Simply add qualified beneficiaries to your Wachovia account to increase your FDIC coverage (also applies to NCUA). If one made their account payable on death (or in trust for) Mom and 3 siblings, they'd have $400,000 worth of federal insurance. Sweet.

You need two beneficiaries for $200,000. Three gets you $300,000, and so on.

As soon as my 4% Wachovia promo rate is up, I will switch my Wachovia money to Alliant Credit Union (assuming Alliant is still offering great rates).

Also, WaMu online Savings is still at 3.3%, and WaMu makes it very easy to transfer from their online savings to checking.

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Comment #6 by Anonymous posted on
Anonymous
How long do I have to keep my Money Market account open at Wachovia before I close it without penalty?

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Comment #7 by Anonymous posted on
Anonymous
My funny Wachovia story

OK, OK, I hate Wachovia (it has something to do with the fact I loved World Savings).

So, my CD has rolled over, and I am searching for the best rate. Wachovia's website has 3.75% for a 9 month CD, not great, but on the whole, lame.

So I go in at 9 am with the printout showing 3.75%. The branch manager says "oops" the rate just fell to 3.15%. He gives me the 3.75% anyway, acting as if it's a big deal.

AAArgh, my money's going to Alliant Credit Union. Big surprise.

Yours,

Bozo

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Comment #8 by Michael (anonymous) posted on
Michael
Bozo, I too loved World Savings. Was switched to Wachovia after the takeover. Then I took my CD money from Wachovia and went over to Alliant CU.

I will take my Wachovia Money Market funds out of Wachovia and switch that to Alliant Savings after my promo rate expires (this will end my relationship with Wachovia completely).

You and I have a lot in common.

Now let's hope Alliant keeps their rates above 4%.

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Comment #9 by Bozo (anonymous) posted on
Bozo
Michael, I keep the $10,000 CD in Wachovia only because of the free safety deposit box. The branch (formerly the World Savings branch) in Lafayette (CA) is very handy, and my wife likes her jewels in a safety deposit box. So, I live with the lame rate on the $10,000.

Meanwhile, I am clicking along with my 5.91% on my 5 year CD/IRA with USAA. No safety deposit box, but, who cares?

Yours,

Bozo

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Comment #10 by Cyclone (anonymous) posted on
Cyclone
My rep called me today about their new rates.

3.15% APY 9-mo
3.00% APY 18-mo
3.75% APY 36-mo
4.25% APY 48-mo
4.75% APY 60-mo

This is in South Florida. No clue about the rest of the country.

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Comment #11 by Bozo (anonymous) posted on
Bozo
That's about par for Lafayette (CA) as well. As I said, the only reason to have money in Wachovia is for the free safety deposit box.

Yours,

Bozo

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Comment #12 by Bozo (anonymous) posted on
Bozo
Cyclone:

Then again, wimp that I am, 4.75% for 5 years is not too bad if you only take out 4%/year. As I always said, anything over 5% is a gift. If you can average 4%, and can hide a few hundred dollars from your wife, you can still have beer money.

Yours,

Bozo

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Comment #13 by Banking Guy (anonymous) posted on
Banking Guy
Cyclone, thanks for the info. I wasn't able to get the 4.75% quote for a Miami zip code and a Central Florida zip code. They still quoted me the same 4.25% APY for 5 years. I wonder if this may be something coming out on Monday? Or perhaps a very local deal?

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Comment #14 by Cyclone (anonymous) posted on
Cyclone
Banking Guy, these rates will be available starting Tuesday morning. Wachovia seems to make these specials statewide as my North Florida friends and I always seem to have the same specials available with them.

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Comment #15 by Anonymous posted on
Anonymous
I received a customer referral offer from Wachovia yesterday - refer a friend to Wachovia and you both get $25. If you need to open a checking account in order to qualify for the 4.75% CD and would like a $25 bonus, email me and I will send you the referral - tsmyr@earthlink.net.

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Comment #16 by Anonymous posted on
Anonymous
The Wachovia 4.75% 60-month CD is advertised in the May 1, 2008 edition of the San Antonio Express-News. The fine print says that there is a $5000 minimum deposit for this rate, or $2000 for an IRA). It also states that this is a limited time offer.

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Comment #17 by Anonymous posted on
Anonymous
I was able to open a 60 month CD at 4.75% without having to open a checking account even though the website states so.

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Comment #18 by Anonymous posted on
Anonymous
WE used World Savings for years for our CD's an Money Market Account but since Wachovia has taken over we are gradually pulling away. The service in our Spring Hill, FL branch is terrible. The tellers are not able to do anything concerning CD's so one must sign in and wait your turn for a rep.. Usually there are only 2 reps sitting at desks and they are slow. Many customers walk out totally disgusted and the personnel give you the impression they don't care. When we cashed in 3 CD's just recently, the rep never even tried to keep us as a customer .. I found that pretty odd but it's just as well.. We are not at Sun Trust with everything we have at their bank ..

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