Dedicated to Deposits: Deals, Data, and Discussion

High Local CD Rates at Countrywide Bank

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Countrywide Bank has some local CD rates that are much higher than their internet CD rates. To see the CD rates available to you, enter your zip code above the rate table. I've done this for several states. Below is how the rates compare:

Certificate of Deposit Rates as of 5/28/08

Term Internet FL TX NY IL CA
APY APY APY APY APY APY

6 month 3.65% 3.50% 3.35% 3.30% 3.70% 3.75%
12 month 3.95% 3.80% 3.65% 3.60% 4.00% 4.05%
24 month 3.75% 4.25% 4.15% 4.20% 4.25% 4.35%
36 month 3.95% 4.50% 4.40% 4.45% 4.50% 4.55%
48 month 4.20% 4.50% 4.40% 4.45% 4.50% 4.55%
60 month 4.20% 4.50% 4.40% 4.45% 4.50% 4.55%

The best local deal is the 3-year term. The local rates are between 45 to 60 basis points higher. The 2-year term is also pretty good with local rates between 40 to 60 basis points higher.

Although all local CD rates are higher for the longer terms, the opposite is true for shorter terms. Only Illinois and California have higher shorter term CD rates. California has the best deal with a 4.05% APY 12-month CD and a 3.75% APY 6-month CD.

For details about Countrywide CDs and IRA CDs, please refer to my April Countrywide post.

If you open a Countrywide CD, I would also recommend opening a savingslink account. A few readers have commented that they were able to have Countrywide transfer the CD funds at maturity 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. It has a history of high rates. Unfortunately, it recently lowered the top yield from 4% to 3.80% APY. But this is still very competitive.

Latest News on Countrywide

I haven't read any more news regarding the pending acquisition of Countrywide by Bank of America. It's still officially planned. This LA Times blog article has a good description of the worry that many people have:
But Wall Street worries about the cockroach theory: Given the already visible troubles at Countrywide, how many more are behind the walls?

The article points out that Bank of America stock has been hitting multi-year lows. It's clear that many investors are not happy with this Countrywide buy-out.

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

  Tags: CD rates

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Comments
2 Comments.
Comment #1 by Anonymous posted on
Anonymous
BG, Can BofA call the CD's after they take over? I guess what I'm asking is it worth going with a 3 year CD with Countrywide vs another bank with a rate 10 or 20 basis points lower. I have 3 CD's due with CW in the near future and I don't know if I should renew or look elsewhere?

1
Comment #2 by marc (anonymous) posted on
marc
I'm very happy with the speed in and out via ACH to Savingslink, but one thing I was dissapointed with was when I ACH'ed money into my Savingslink to fund a CD and they said I still had to wait for the hold period of 5 days EVEN THOUGH THE MONEY WAS NOT LEAVY COUNTRYWIDE. It was rediculous, but the CSR couldn't be convinced that this didn't make sense. Still got the same rate, but it almost messed my timing up (since I need the funds by a certain date next year)

As to Bofa purchase, I think it is definately in question, though the lowering of the rates does make it seem like it's more possible. BofA stock is yielding 7.5% right now, so one has to assume a dividend cut is expected and if they did that, they would prob not be into taking on more risk.

1