Update 8/23/08: WaMu has increased the Online CD yield to 5.00% APY on terms of 12 and 13 months.
Washington Mutual just increased the yield on its online 12 and 13-month CDs from 4.25% to 4.50% APY. The 8-month CD yield remains at 4.25% APY. The minimum deposit is $1,000.
For details about opening and closing WaMu Online CDs, please refer to this July 5th post. Several readers have commented about their experiences opening a WaMu Online CD in my last WaMu CD post. Some of the details mentioned included:
- 5 Lexus Nexus type verification questions asked during the online application
- CD can be funded with an ACH transfer from an external account. Two small deposit amounts are used to verify the account. Also, the deposits are followed by a withdrawal of the sum of the two deposits.
- The application did not provide fields for POD beneficiary info
- Early withdrawal penalty for a 12-month term is 180 days of interest on the amount withdrawn.
- After 15 minutes on hold at their 800#. I gave up.
- My account is STILL not funded. They STILL haven't sent me an email and responses to 3 bankmails have been canned BS responses that they can't do anything unless I call.
I opened an online CD in 5 minutes transferring the money from my WaMu checking account which I had just transferred from an external account. All my transactions and external transfers with WaMu online have been fine except that the outgoing transfers seem to take much longer than the incoming ones.
With this very high CD yield and the WaMu's recent big rate increase of its Online Savings Account (see post), WaMu is looking like it's desperate for deposits as it struggles with huge loan losses. Latest news shows WaMu is having success at raising more capital. Last week a UK hedge fund bought a 6% stake in Washington Mutual.
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). This WaMu page provides more details of FDIC insurance and WaMu's two FDIC-insured banks. Note, there's no mention about the ability to have deposits under both banks to double your FDIC insurance.
To review all of my recent WaMu posts, please refer to this page. WaMu continues to offer Traditional 5% CDs for terms of 48-months and longer (see post).
Thanks to the reader who mentioned this new rate increase.