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WaMu's Money Market Savings Account Promotion

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Update 9/26/08: WaMu closed. JPMorgan Chase acquires WaMu's banking operations. Please refer to this post for more details.

Washington Mutual is offering a promotion on its Money Market Savings Account with a 3.60% APY and with a rate guarantee of 12 months. It doesn't seem to be listed at the website. A reader mentioned seeing it advertised in the LA Times today. It's also being advertised in the San Francisco newspaper. The ad is available online here.

Update 7/31/08: This MMA promotion is still being advertised but the rate being advertised is changing. For 7/30/08, the San Francisco ad has a 3.75% APY. Also advertised is a 4.25% APY 13-month CD with a $1,000 minimum deposit. Like the MMA, it can only be opened at a WaMu branch or by phone.

At first sight the promotion looks like a very good deal. However, there are several features that hurt the deal. Here's the deal in a nutshell:
  • 3.60% APY is only for balances of $25K and over. Rates for balances under $25K are much lower.
  • The 3.60% APY is composed of two parts: a rate bonus of 0.74% and a base rate
  • Rate bonus of 0.74% is guaranteed for 12 months for balances over $25K
  • Base rate is not guaranteed and is variable
  • There's a $15 monthly fee for balances under $25K
  • New money is required
  • Checking account is required
  • Can't be opened online. Can be opened by phone or at a branch.
  • May not be available in all states.
In addition to California, the CSR said it's available in Texas and Florida, but she said it's scheduled to end at the end of Saturday (7/12/08). Since the ads in California were published today, it seems likely that this promo won't end tomorrow at least in California.

Thanks to the reader who mentioned this promotion in the finding the best deals post.

Other WaMu Bank Deals

For those who don't like high balance requirements to avoid monthly fees, WaMu's Online Savings Account is a better deal. The yield is lower (3.30% APY as of 7/11/08), but there are no minimum balance requirements or monthly fees. This online savings account also requires the checking account relationship, but their Free Checking qualifies.

WaMu continues to offer a very competitive 4.00% APY 12-month and 3.60% APY 8-month Online CDs (see post). Also, they have a Traditional CD with a yield of 5% APY for terms of 48 months to 120 months (see post).

For information on WaMu's Savings for Success Program and their latest financial problems, please refer to my Saturday post.

As I recommend with any bank, make sure you stay under the FDIC limits. WaMu is FDIC insured under two banks (Washington Mutual Bank FSB and Washington Mutual Bank).
  Tags: California

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Comments
3 comments.
Comment #1 by Anonymous posted on
Anonymous
It has probally been reported already but in case it has not countrywide lowered their saving link rate from 3.65 to 3.55. Not much but it all counts.

1
Comment #2 by Anonymous posted on
Anonymous
Same deal being offered in the NJ/NY market but the rate is lower.

We are being offered 3.55%

1
Comment #3 by Anonymous posted on
Anonymous
Rate bonus has been increased in SF to 0.88% so the yield went from 3.60% to 3.75%.

1