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Update on Wachovia's High Yield CD Specials

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Wachovia Bank
Wachovia has started advertising some of its Featured CDs in newspapers around the country including Denver, San Francisco and Florida. The ads show their 4.25% APY 12-month CD and the 4.00% APY 7-month CD. The minimum deposit is $5,000 ($2,000 minimum for an IRA CD). I first reported on these Featured CDs in this Friday post. If you've been following CD rates in the last few months, you'll know these are way above what other banks have been offering.

One thing to note in the ads is that there's no mention of the checking account requirement. I received conflicting info on this from two different Wachovia reps, so your miles may vary on this issue. Many readers in my previous post have mentioned being told by reps from their local branches that checking is required. Also, Wachovia's FAQ does state that Featured CDs require an existing or new Wachovia checking account. This is typical of past Wachovia CD promotions, but the first CSR seemed pretty confident that this new promotion was different.

Update 7/9/08: I received more confirmation from a Wachovia CSR today that these special CDs are available nationwide with no checking account requirement. She recommended against opening the CD online due to compliations (several readers have also reported problems with the online application). CDs can be opened by phone and can be funded by check or wire transfer.

The checking requirement isn't that bad since the Free Checking qualifies. A commenter from the previous post mentioned that he didn't receive a credit inquiry. In the past others have noted a hard credit pull, and this FAQ does state that Wachovia will verify your personal information and credit history with consumer reporting agencies.

Another reason you may want a Wachovia checking account is to take advantage of the Way2Save account in which you can easily make $72 more than you would earn in a 3% savings account in the first year (see my Way2Save review).

Wachovia's checking also has a $25 refer-a-friend bonus. Plus, keep a look out for new branches. They often have a $75 checking bonus.

The ad doesn't list all the Featured CD rates and terms. The website also doesn't list these, so these may vary based on your location. Below are the terms and rates that I was told on Friday based on zip codes in Texas, Florida, California and New York. Readers in my previous post have also confirmed these in Arizona, Georgia and Central Illinois.

Wachovia Featured CD Rates as of 6/20/08:

Term APY
7-month 4.00%
12-month 4.25%
18-month 4.40%
24-month 4.50%
36-month 5.00%
48-month 5.15%
60-month 5.25%

Early withdrawal penalties equal 90 days of interest for terms under one year and 180 days of interest for terms of one year and greater.

More Wachovia News and Speculation

As this Charlotte Business Journal reports, Wachovia has been hit hard in this mortgage mess. Its acquisition of Golden West Financial Group (parent of World Savings) proved to be a costly problem. The article repeated the CNBC speculation of a potential acquisition by JPMorgan, however, it noted there's a complication in such a merger. JPMorgan has 7 percent of US deposits and Wachovia has 6 percent. That would put the merged bank above the federal deposit cap that requires a bank not to have more than 10 percent of all US deposits.

With Wachovia being the fourth largest US bank by assets, it may be too large to fail in that the Fed wouldn't let it happen. Nevertheless, I would recommend staying below the FDIC limits. Wachovia describes how you can be FDIC insured on deposits above $100,000. I also have more info at this post. Wachovia's financials can be reviewed at their FDIC page.

  Tags: Wachovia Bank, CD rates

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Comments
17 Comments.
Comment #1 by Anonymous posted on
Anonymous
Was also advertised in New Jersey

1
Comment #2 by Sam Cass (anonymous) posted on
Sam Cass
Not available in Massachusetts. Going over the 10% deposit limits can be solved. They can divest banks which is common in big bank mergers.

1
Comment #3 by Anonymous posted on
Anonymous
I just noticed a HARD pull from Equifax and a pull from
Chexsystems.

1
Comment #4 by Cyclone (anonymous) posted on
Cyclone
Opening an acct: My rep told me no pulls if you have a ** checking or money market ** acct for over six months. Only savings, CDs, annuities, closed checking/money market accts (or a checking less than 6 months old) require a pull. All customers who are customers of the bank less than 90 days require a pull. Pulls are NOT required for CD-only customers. Caveat: Online works by different rules that my rep didn't know, but this is how it works if you call or walk in. Their policy for it has something to do with checking and money market accounts being classified as demand deposit accounts or something of that nature. Doesn't affect me so it didn't really stick to me like glue.

Checking requirements for CD. If you were an ACTIVE World Savings customer at merger (meaning you had an open account merge over), no checking acct is required for these promos. If you did not have any OPEN, MERGED World Savings accts, then the checking requirement is there.

However, this is somewhat YMMV b/c their system will open the CD and give you the promotion rate even if the rep does not see the checking. However, the reps are guided to look for that b/c they do not get paid on CDs opened w/o any checking accts.

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Comment #5 by Anonymous posted on
Anonymous
Cyclone, your posting is confusing.

I too got hard pull and none of your reasoning applied to me.

I opened the CD online and was forced to open a checking to qualify for the rates.

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Comment #6 by Anonymous posted on
Anonymous
Confirmed the posted rates are available in northern VA. Requires checking account. (free checking, funded with $100, no min bal required, qualifies.) Minimum $5k for CDs.

1
Comment #7 by Sree (anonymous) posted on
Sree
I am confused now with anynomous comment at 8:13PM about Hard credit enquiry.
I opened on Saturday, I asked the banker before opening about the hard credit enquiry, he really cleared me more then once that they wont do the credit check if one opened any checking/CD accounts with them, only credit cards or loan applications will get credit check.
I called again now and double checked with them and they told me that they didnt run any credit check on me.
Ofcourse, I dont have an account with credit beuro on hand to check my credit profile right now.

I will know my trans union credit score at the end of the month, will check it at that time

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Comment #8 by Bozo (anonymous) posted on
Bozo
As a veteran World Savings customer, I guess this explains why the checking account thingee never came up. Good, as I really didn't need another stupid checking account I never use.

Yours,

Bozo

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Comment #9 by Jeff (anonymous) posted on
Jeff
I opened a CD in AZ today, at a branch, and the rep said a checking account was not required. She said this was a recent change. The rate sheet I picked up on friday had it and the rate sheet they gave me today did not.

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Comment #10 by Anonymous posted on
Anonymous
Does it require a branch visit for those feature CDs not listed on the website?? Dose anyone know how long these rates will last?

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Comment #11 by Anonymous posted on
Anonymous
I already have one of their checking accounts (as an acquired World customer) so I can't tell whether it's required. However, I was able to fund the CD with part of my matured CD proceeds, so new money is definitely not required.

The CSR will have to mail me the papers -- so many people are getting these CDs that the printer queue is clogged.

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Comment #12 by Anonymous posted on
Anonymous
was by was told 25 bonus for myself and who refers me if you have account i want to go to ny branch any referral? Anton mcrmgf@aol.com

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Comment #13 by Anonymous posted on
Anonymous
I had a 7 month CD maturing this past Monday and I was able to roll it over into another 7 month CD with the new 4.00% APY in Pennsylvania. I am glad I contacted them about this or otherwise the roll over rate would have been 1.16 %. I already have a checking account with them so I can not answer whether it was needed or not.

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Comment #14 by Anonymous posted on
Anonymous
Opening a checking account with referral can't be done online, can it?

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Comment #15 by Anonymous posted on
Anonymous
The "Featured CD" rates shown above are still in effect in South Jersey. I opened a 3-year 5% CD in a local branch today. I was asked if I have (I do) a Wachovia checking account.

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Comment #16 by Anonymous posted on
Anonymous
Can someone confirm that that the 5-years CD at 5.25APY is no longer available (in CA)?

I called and the CSR said that the promotion period has ended, but I still want to make sure. So disappointed if it is not available anymore.

1
Comment #17 by Darvin (anonymous) posted on
Darvin
Hello. I find your blog is very interesting. So much has already been said about banks – good and bad. Wachovia Bank is one of the most popular among the dissatisfied customers, the majority of reports have been posted about it. You can find lots of claims on www.****edconsumer.com. Everyone can file his/her feedback on the site to share experience with others.

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