Update 7/22/08: The Featured CDs have been extended. See this post for more details.
Wachovia is still offering very high rates on its Featured CDs. However, I just confirmed with a banking rep that these are scheduled to end at the end of day this Friday (7/18/08). The rep also confirmed that no checking account is required. The minimum deposit is $5,000. For more details about these CDs, please refer to my June post. Below is the list of the current yields:
Wachovia Featured CD Rates as of 7/15/08
(scheduled to end on 7/18/08)
Be sure to call your local branch to verify these rates. The banking rep made it appear these are available nationwide. However, some readers have mentioned that these weren't available at their branches.
Money Market Account Promotion
Wachovia is also having a money market promotion. However, unlike the CD promotion, this does seem to vary based on location. For Texas and California, I was told the yield is 3.50% APY for balances over $10,000 guaranteed for 90 days. Other states have a top yield of 3.25% APY. The money must come from outside of Wachovia, and this does require a checking account. According to the banking rep, this promotion ends on July 22, 2008.
Latest Wachovia News
Shares of Wachovia plummeted to a 17-year low today after an analyst downgraded the shares due to rising losses on home loans. However, shares did rebound some this afternoon. A Wachovia spokeswoman who was quoted in this Bloomberg article said that "Wachovia has $150 billion in liquidity. The bank attracted $800 million in deposits yesterday and remains well capitalized with more than $50 billion in Tier 1 capital." According to this AP article, Wachovia's option ARM portfolio has been especially hard hit. In preliminary quarterly results that were released last Wednesday, Wachovia said it lost between $2.6 billion and $2.8 billion.
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.