Dedicated to Deposits: Deals, Data, and Discussion

Update on WaMu's 5% One Year Certificate of Deposit

POSTED ON BY

Update 9/26/08: WaMu closed. JPMorgan Chase acquires WaMu's banking operations. Please refer to this post for more details. Note, the 5% CDs are still being offered online as of 9/30/08.

Update 9/13/08: The 12 and 13-month CD yields have fallen to 4.00% APY.
Update 9/06/08: The 12 and 13-month CD yields are back up to 5.00% APY.
Update 8/30/08: The 12 and 13-month CD yields have fallen to 4.50% APY.

I opened the 5% APY 12-month Online CD at WaMu.com this afternoon. The process went smoothly. I wasn't able to open it in the morning due to some type of website upgrade that was taking place. As I mentioned in my first post on this 5% CD, it's also available as a 13-month term. In addition to Online CDs, it can be opened by phone or at a WaMu branch. I've been told by a WaMu CSR that this special is scheduled to end on 8/29/08. I wouldn't be surprised if they extend it. There's also a 13-month 5% CD and an 8-month 4.25% APY CD. These rates are listed at WaMu's Online CD page.

A summary of the important features that I can confirm from the online application and from the account disclosure (pdf) include:
  • $1,000 minimum deposit
  • CD can be funded with an ACH transfer from an external checking or savings 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  • Early withdrawal penalty for a 12-month term is 180 days of interest on the amount withdrawn.
  • You have 7 days to fund the CD to lock in the rate.
  • Grace period at maturity is 7 calendar days
  • If you withdraw funds during the grace period, no interest is earned between the maturity date and the time of the withdrawal

I don't have experience closing a WaMu Online CD, but a reader described a nice online feature at WaMu that can make closing a CD easy if you have a WaMu checking or savings account:
when a CD matures, on the account summary you will see a big bold text saying: "This CD has reached its Maturity Date!" under the matured. They give you a bunch of information and even let you close and transfer to your checking/savings.

They don't seem to allow an ACH transfer to your bank account outside of WaMu.

Update 8/25/08: The reader who mentioned this withdrawal feature commented that his last matured Online CD didn't have this feature. So this option may no longer be available. Another option is to call WaMu and instruct them to close the CD and transfer funds to your WaMu savings or checking account. The reader reported that it took WaMu around an hour to close and transfer the funds. WaMu states that it'll take within one business day. Another reader reported that the Online CD can be cashed out in person at a WaMu branch.

Below is a summary of my experience with the online application (Note, I already had a WaMu login ID from a previous WaMu Traditional CD).
  • Page One allows you to select the term of the CD. One nice feature is that it includes the APY with the term so there's no doubt about receiving the advertised rate. Page one allows existing account holders to provide their login ID and password so they can prefill the application. I didn't receive any Lexus Nexus verification questions so that may be another advantage.
  • Page Two required me to enter some personal data. Since I provided my login ID, it had my name and address, but I still had to enter my birth date, social and driver's license ID.
  • Page Three allowed me to verify all my personal data. It also provided links to the account disclosure. This was the only place that I found the early withdrawal penalty listed (180 days for a 12-month CD). Page three also required me to agree to the following credit reporting authorization:
    I authorize and consent to WaMu obtaining credit reports in connection with this transaction, using the information to evaluate my application, for consideration of other accounts and services, and any other lawful purpose.
  • Page Four dealt with account funding. The only option that I saw was to fund the account with an ACH debit from another bank's checking or savings account. I assume if you had a WaMu savings or checking account, it would provide the option to fund it with one of those. In my case, I had to provide the routing and account number of the funding account. It described the account verification process that would be required:
    To verify that the specified external account is yours, in 2-3 business days once your account is approved, WaMu will make two small deposits (each less than $1.00) and a matching withdrawal from your external account. We will ask you to confirm and verify the two deposits online, therefore verifying your true ownership of the external account.
  • Page Five, the last page, confirmed the application was completed. It confirmed the yield, the term, the opening deposit and the funding bank. It also noted the following requirement about funding:
    This is the CD term you selected and the fixed interest rate and APY that will apply during the term of your Online CD account, as long as you fund your account within 7 days.
    Within 5 minutes, I received email confirmation and instructions for account verification as promised. I was able to go to my main account page and see the new CD account listed.
If you decide to open a WaMu Online CD, you might also consider their Online Savings Account. It currently pays 3.75% APY, and it has no monthly fees or minimum balance requirements if it's linked to WaMu's Free Checking account. The Free Checking also has no monthly service charges. It has several nice features such as free checks and free outgoing wire transfers worldwide (which can come in very handy to fund CD's at other banks). I plan to open these before the CD matures.

Update 8/26/08: I received the two trial deposits into my savings account this morning. There was also one withdrawal of the sum of the two deposits. I was able to log into wamu.com and verify without problems. I would prefer if WaMu didn't do a withdrawal of the trial deposits since savings accounts are allowed no more than 6 electronic withdrawals per month. But at least it'll only be a total of two withdrawals (one for the trial deposits and one for the CD funding).

Update 8/28/08: The deposit was received this morning at WaMu. An email was sent by WaMu confirming the deposit. I logged into my WaMu account, and the deposit was shown. The start date was 8/27/08. I also logged into my funding account at GMAC Bank. The amount was debited by WaMu on 8/28/08. Here's a summary of my expereince with the Online CD account opening process:
  • Sunday 8/24/08: Applied for the Online CD
  • Tuesday 8/26/08: Trial deposits/withdrawal made by WaMu. I verified the deposits at WaMu
  • Thursday 8/28/08: Funding account debited. Deposit amount is shown at WaMu

Recent WaMu News

This LA Times article questions the "Too big to fail" notion. According to this article by Mike "Mish" Shedlock, "Washington Mutual (WM) is on the brink," and it is unable to raise capital. WaMu is not alone. This Tampa Bay news article mentions that HSBC Bank has the same Weiss rating as WaMu (D+). The last part of this article has an important point to keep in mind:
"We can expect to see more bank failures, but it's not a repeat of the savings and loan crisis," said Greg McBride, senior analyst for Bankrate.com in North Palm Beach.

"That outlook isn't a cause for concern for individual savers provided that their funds are fully protected by deposit insurance."

FDIC Insurance

Bank deposits at WaMu are FDIC insured under two banks: Washington Mutual Bank FSB and Washington Mutual Bank. Washington Mutual Bank appears to be the main bank which holds most of the deposits. 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. For other ways to extend your FDIC insurance coverage above $100K (along with the associated risks), please refer to my post, Extending FDIC Coverage Past $100K. For facts and misconceptions about the FDIC, please refer to this post.

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).

  Tags: CD rates

Related Posts

Comments
84 Comments.
Comment #1 by Anonymous posted on
Anonymous
That reader's comment on closing wamu cd is not right. I had about 5 CDs with WAMU and I had to call and wait 1 day to have it transferred out. There is no such thing as trasnfering out online yourself or red words showing up reminding you that the CD was matured.

1
Comment #2 by Anonymous posted on
Anonymous
Can an online WAMU CD be cashed out in person at a branch when it matures?

1
Comment #3 by Anonymous posted on
Anonymous
That reader's comment on closing wamu cd is not right. I had about 5 CDs with WAMU and I had to call and wait 1 day to have it transferred out. There is no such thing as trasnfering out online yourself or red words showing up reminding you that the CD was matured.

That was the old way. I haven't done it myself, but I understand you can now close CDs online.

Can an online WAMU CD be cashed out in person at a branch when it matures?

Yes, they can.

1
Comment #4 by ShraZZy (anonymous) posted on
ShraZZy
I was the one who told that you can automatically close it online the next day of maturity. I did three of them but the last one didn't have that function anymore. The last CD that matured for me was on July 24 but the July 9th one still had it. I have one maturating in early September so I will let you know if that function is still here. Also if you call usually they state within 1-day business day to close and transfer the funds but mine went after like an hour.

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Comment #5 by Anonymous posted on
Anonymous
""That was the old way. I haven't done it myself, but I understand you can now close CDs online.""

My most recent closure was 9/18/08. is that "new" enough? No such thing as transferring out online yourself, period.

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Comment #6 by Anonymous posted on
Anonymous
i meant to say 8/18/08 oops

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Comment #7 by marc (anonymous) posted on
marc
Thanks for the details. I like the wire feature on the free checking and the fact that you can open at a branch (one right across from my work) or at least open online and then get your cashier's check at a branch (if they make it though the year). With the credit default swaps predicting a 10% chance of WM failing (source: WSJ Blog), it's worth the risk of hassle should the FDIC swoop in. My prediction is a takeover will be over a long weekend since this mess would be big.

http://blogs.wsj.com/marketbeat/2008/08/22/four-at-four-lets-push-this-giant-ball-of-oil-out-the-window/

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Comment #8 by Anonymous posted on
Anonymous
i have a $240K Ira maturing next week. Thinking about moving it to WaMu. Got a little sting from the Indy Mac deal. So feeling a little gun shy. What would you do?

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Comment #9 by Anonymous posted on
Anonymous
Will they mail you a monthly dividend check?

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Comment #10 by larkin (anonymous) posted on
larkin
To anonymous at 9:25--You're asking anonymous posters what to do with 240K in retirement money? WOW...

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Comment #11 by Anonymous posted on
Anonymous
to anonymous "9:25 PM, August 24, 2008"

How did you get burnt on IndyMac? Did you go over the FDIC limit?

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Comment #12 by beancountess (anonymous) posted on
beancountess
I've currently got $$ with Vineyard, who I'm afraid will crash and burn before the year is out. Sure - funds are FDIC insured, but interest can/will be lost if they fail, and I am weighing the benefits of pulling out and losing a few bucks now, rather than go through the hassle..
I'm looking into Zions, with a 130 year track record and 4-star rating.
A far as WaMu, the bigger they are ....

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Comment #13 by Anonymous posted on
Anonymous
I opened the 12 month CD last night after running into the "website down for upgrade" message I got Sunday morning. The process so far was quick and simple.

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Comment #14 by scott (anonymous) posted on
scott
I am also looking for information on taking monthly interest. I did the application this morning and finally got approved after unfreezing my Equifax. Most applications have a place to tell what you wanted done with interest, But none found. I did find this on WAMU site

"In general, you can withdraw the interest earnings on a CD at any time without an interest penalty."

I tried calling to ask but gave up after a 1/2 hour on hold. I'm hoping they allow interest to go monthly to the funding account.

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Comment #15 by Anonymous posted on
Anonymous
Don't know what this is worth, but CSR said on Sat. they might have interst checking in a few weeks.
I'm in Glendale, CA

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Comment #16 by Anonymous posted on
Anonymous
I too am on the fence whether to open a large POD CD with WaMu, a bank most likely to fail, FDIC insurance notwithstanding. Does anyone know from experience if POD titling will slow/complicate the transfer of funds from a failed bank as I suspect qualified beneficiaries in such an account would have to be first verified?

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Comment #17 by Mario (anonymous) posted on
Mario
Thanks for all the details you've provided, banking guy!

My wife called our local branch and confirmed that the 5% APY 13-month term is available there (TX).

I'm considering whether I should open a CD online (funded by ACH) or in branch (funded by check). Does anyone know when WaMu starts paying interest on the CD (e.g. opening date) for the online CDs? Is it only after the ACH transfer completed?

I'm also interested in the poster's question yesterday @ 6:53 pm if the online CD can be closed in branch.

Thanks for any details that someone can provide on my questions!

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Comment #18 by scott (anonymous) posted on
scott
Just found out the only way you can get your monthly Interest is either by them mailing you a check or transferring into another WaMu account. I don't like having checks mailed to me since it can be a pain keeping track that you get all checks each month. So I just opened the free checking. Will just link my Countrywide to it and pull out the interest every month

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Comment #19 by Tiburon Hiker (anonymous) posted on
Tiburon Hiker
I had a IndyMac CD that matured early this year. The amount was $157,000. With all the concerns over viability of the banking industry I luckily broke the funds into 2 smaller CD's, carefully making sure that the POD beneficiaries were my children. Indymac failed on a Friday. I had access to these two CD's on the following Monday. Knowing they were healthier now than before the collapse of the bank I left the accounts alone. Interest rates continued to creep up and two weeks ago I pulled both of these CD's and reinvested them with WaMu and Wachovia. It took about ten days to get the checks in the mail from Indy, and without any penalty for early withdrawal as per FDIC rules. My interest rate went from 3.81 to 4.65, so I benefited from the failure of IndyMac. If you stay within FDIC limits and follow the advice of the moderator of this forum I can't see how you could go wrong. If a bank fails and you feel more comfortable pulling the money you have that option, if you keep it in place likely the CD will run it's course. The worst that could happen is the bank could close out the CD early and send you your money. Stay within FDIC insurance limits and you can pretty much call the shots.

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Comment #20 by Anonymous posted on
Anonymous
I went into a WAMU branch in GA and had to open a 13 month CD for the 5.00 APY. I was told the 12 month is only available online.

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Comment #21 by Anonymous posted on
Anonymous
xmgpaz

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Comment #22 by Anonymous posted on
Anonymous
I went to New Jersey branch of Wamu and they also said only 13 month is available at branch.

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Comment #23 by marc (anonymous) posted on
marc
Does anyone know if you open the CD online and then go into a branch to fund it with a check?

The branch here in downtown San Francisco wasn't too busy so it doesn't appear that a made rush is on for in-branch openings of these CDs here. Maybe word will get out later in the week.

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Comment #24 by ShraZZy (anonymous) posted on
ShraZZy
You can always try and go to the branch, wouldn't hurt.

Also if you already had the external bank account setup, you won't need to verify the two deposits. You will actually see in the transfer scheduled the amount of your CD that will initiate in a day or two.

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Comment #25 by Anonymous posted on
Anonymous
Had a little over the $100k with Indy Mac, FDIC folks honored it all. Think it was such a small amount, it was easier to do that than to go through the paper work.

Had several S&L go under on me in Texas in the 80's. Never lost a cent. The FDIC just assigned my accounts to new banks. I think they just pay the new bank a negotiated amount to take over the failed one's business.

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Comment #26 by Bozo (anonymous) posted on
Bozo
To: Tiburon Hiker
Re: CDs with "iffy" banks

While I agree with you totally in concept, I'm not sure I want to be involved with the failure of the first bank that's "too big to fail."

I have an IRA CD (2 years) rolling over this month with State Farm Bank, and I was tempted to go with Wachovia/WaMu/KeyDirect. I finally threw in the towel and decided to roll it over at State Farm Bank.

The interest rate's not the highest, but it's fair. And State Farm Bank was never into the sub-prime fiasco as a lender.

I was also tempted to move it to Wells, but I was aghast at their interest rates. Not much better than putting it under the mattress.

As I said in another post on this blog, it's really a shame when folks lose so much trust in their banks that FDIC coverage is itself doubted. Never thought I'd get there, but a failure by Wachovia could drain the FDIC of its last penny. I don't want to be there to see what happens.

Yours,

Bozo

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Comment #27 by Rob (anonymous) posted on
Rob
"No such thing as transferring out online yourself, period."

They used to have this feature. I used it myself twice. For some reason, however, my last 2 CDs did not have the closeout feature online.

(I have multiple laddered online CDs with WaMu).

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Comment #28 by Bozo (anonymous) posted on
Bozo
Without being too flip, the concept of "full faith and credit of the U.S. Government" doesn't go too far with me these days. The government's credit is basically tied to the Gulf States, and the Chinese, Russians, and Japanese. Wow, that's comforting. Do you have a lot of faith in our supreme leaders in Washington? I don't. If the FDIC is exhausted, sure, the idiots in Washington will just print more money. That's sort of the Zimbabwe solution.

Pardon my rant, but it's getting silly when ordinary folks have to worry about the safety of their retirement funds.

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Comment #29 by Anonymous posted on
Anonymous
In the late 1980s there used to be a bank called BCCI. They operated out of different countries, including the US. At that time interest rates nation wide used to be anything up to 7-8%. BCCI rates were exceptionally much higher than any other bank "WORLDWIDE" as much as 12%. They attracted millions, those rates lasted about a year or so before the FBI moved in and closed the bank with the loss of millions to clients. That particular bank was involved in some kind of criminal activity worldwide. Point being, that when a bank is in some kind of trouble, one of the ways to attract capital is by raising rates. And when a bank does that, that really worries me. Who needs another headache?

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Comment #30 by Anonymous posted on
Anonymous
Bozo,
You are right, but we should stop electing same old corrupted people in Congress.

We are to be blamed partially for the bad faith that is filling our minds about the insecurity.

We should have clear objective to save for long term and be faithful to ourselves and believe in the Dollar. Otherwise, our savings efforts will not bring the rewards we all expect.

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Comment #31 by Bozo (anonymous) posted on
Bozo
To: Anon at 6:13 pm
Re: Too good to be true interest rates and BCCI

OMG, I had totally forgotten about BCCI. But, then, it seems many others have forgotten as well.

What really made me re-think rate-chasing this morning were the numerous comparisons of Countrywide and IndyMac (with their huge rate bumps just before their respective collapses) with Wachovia and WaMu. Your reminder about BCCI was noteworthy.

It does seem that Wachovia and WaMu are matching each others CD rates upward in a downward institutional death spiral. Why do they care? When they go toes up, the acquiring bank (if any, tee hee) won't have to honor the rates and/or terms. Happened with NetBank, if you are curious.

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Comment #32 by Anonymous posted on
Anonymous
I like to add to the discussions about the faith.

We, the people bring faith to the Dollar and its value by saving it and foreign Governments by buying it.

To be in balance, the Government tries to destroy its value by printing more of it or trashing it like Ben Bernanke does (lowering interest rates).

So, we the people must believe and have faith not FDIC or other Government's body.

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Comment #33 by Anonymous posted on
Anonymous
I tried to open a CD at WaMu via the Internet and could not get it titled into my revocable living trust. They requested I had to go in to a branch to do so. No branch near our summer home so could not complete the purchase. Now the rate offer is better and might try a phone call. If not, I give up.

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Comment #34 by Anonymous posted on
Anonymous
I also called about the revocable trust account title for the 5% CD at Wamu. Here is what I was told to do. First, open the account on line as a single or joint account. Second fund the account as you normally would. Lastly, (here's the tricky part) visit a branch later and ask a bank rept to change the vesting on the account to your revocable trust title. I was told you can also do this "vesting" change by mail. I was given this proceuder by a branch rep in a Florida office after I got no help from the telephone bankers onthe 800 number. The branch rep said they do this vesting change often.

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Comment #35 by Anonymous posted on
Anonymous
Banking Guy, you said "You have 7 days to fund the CD to lock in the rate." From my past experience, I was given a month to verify the trial deposits. Has Wamu changed this practice? Can you point me to some written evidence that specifies 7 days? I'm asking because I'm worried about not being able to fund the CD within 7 days (by the way, are they calendar or business days?). Thanks.

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Comment #36 by Anonymous posted on
Anonymous
Hi Banking Guy, I found the reference to 7 calendar days on the Wamu website. That's kinda short for me as I need to do consolidating transfers from three banks and all have snail-speed ACH transfers :-( Thanks anyway...

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Comment #37 by Anonymous posted on
Anonymous
POD and longer terms are available at a WaMu Branch...at least in Oregon.

CD will renew at non promotional rate when opened at a branch.

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Comment #38 by Anonymous posted on
Anonymous
Banking Guy,

Please let us know when you receive your WaMu intial deposits. Like you, I opened my on line CD Sunday.

As the previous posters said, 7 days is not very long to get your CD funded with slow ACH transfers from other banks.

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Comment #39 by Anonymous posted on
Anonymous
Tried to open an online CD this morning (8/26) and my application was denied based on not being able to verify the security questions. I called the online reps and was told that if this happens I will be locked out from applying again for 7 days. Apparently the credit bureau has wrong info on me (it was a previous address) so I now have to contact credit bureaus to correct or it will happen again. Altho this has not happened before with any other online CD app.

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Comment #40 by marc (anonymous) posted on
marc
Just opened my 13 mo. in branch in SF since I wanted to do it via paper check deposit (you cannot open online and fund in branch) and went smoothly. Nice service. The staff didn't seem to be panicking (yet). Opened the free checking account with a $1 as well as I might take advantage of the free outgoing wire transfers (though strangely they charge for incoming). They tried to push a credit card on me, so they still seem to be willing to lend out money.

1
Comment #41 by Anonymous posted on
Anonymous
I was a WAMU customer until yesterday. Looking at the stock prices tumbling (WM)almost everyday, knowing someone that works in another bank that has a friend at WAMU that is saying that WAMU management is not telling staff anything what is going--which is causing chaos, staying with this Titanic does not make sense.

Please be careful.

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Comment #42 by Anonymous posted on
Anonymous
I opened a CD last Fri. with 4.5% APY. When I see it bump the rate up again to 5%. I wanted to take the money out, since I don't want to deal with FDIC. I was told that the CD has no penalty if I decide to close it, except that I loose the interest. However, it turned out it does have penalty, and it's about $1400 penalty for me to close the CD besides losing interest.

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Comment #43 by Bozo (anonymous) posted on
Bozo
To: Anon @ 11:57
Re: Morale at WaMu

I'm not surprised the folks at WaMu might be a little skittish about their jobs. Isn't it traditionally Friday the day the FDIC closes down banks? So much for TGIF.

As I've said in other posts on this blog, I've really enjoyed rate-chasing the past couple of years. Now, with the odds of a bank failure directly related to its CD rates (lessons learned from Countrywide and IndyMac), it seems like chasing higher rates is setting the proverbial torch to the gasoline.

I know, I know, FDIC and NCUA. But do you really want to get messed up with those bureaucrats if you have an IRA CD? I never tried to do a custodian-to-custodian transfer with a failed bank with the FDIC as intermediary. I don't particularly want to start now. I assume the FDIC would **** it up, I'd get a check, a notice of distribution, and then I'd be dealing with the IRS.


Aarrgh.

Bozo

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Comment #44 by Anonymous posted on
Anonymous
I can't believe that people are still scared of bank failure. If you stay under the FDIC limits, it's pretty painless should the institution fail. The fact of the matter is, if you take your money out (or don't put it in, when you otherwise would) because of a fear of failure, you're just bringing that this much closer to happening.

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Comment #45 by Bozo (anonymous) posted on
Bozo
To: Anon @ 2:38
Re: Scared or prudent?

For the benefit of 50, or even 100, basis points over 2 years, do I really want to have to deal with the risk of a failed bank? I did the math, it worked out to about $800 to $1000 on my State Farm CD. For the small amount involved, I just did not want to touch WaMu or Wachovia (or KeyDirect, for that matter).

I'm really not into failed banks.

Yours,

Bozo

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Comment #46 by Anonymous posted on
Anonymous
Thanks, Banking Guy, for giving us the "play by play" for opening the WaMu CD. I also received my initial deposits and verified them. Is everything else automatic (withdrawl of funds)?

I'm funding this CD with my FNBO savings account. Does the ACH process happen faster than the 3 business days FNBO usually takes?

If not, I should be ok if FNBO only takes 3 business days. The account should be funded by Friday. I noticed that sometimes it takes FNBO 4 days (when I transfer the funds on the weekend).

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Comment #47 by Anonymous posted on
Anonymous
Does opening this CD result in a hard pull on my credit report?

What if I already have a free checking account with Wamu?

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Comment #48 by Anonymous posted on
Anonymous
To: Bozo@2:51
Re: Scared

If you stay under the FDIC limit, there's no risk with a bank, failed or not. Unless you're going to start socking your money under the mattress, your fear is irrational.

As pointed out, you're only hurting a bank which might be in trouble by withholding funds, when you could make more money and help keep the bank afloat.

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Comment #49 by Anonymous posted on
Anonymous
This might be a dumb question... but is there any significant difference between a 12-month CD and a 13-month one? The worst would be missing out the then prevailing 10% APY by a month, right? :-)

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Comment #50 by Anonymous posted on
Anonymous
It used to be that WAMU allowed more money to be added to CDs of 12 months or less during the term of the CD.

I don't know if that policy is still in effect or if it applies to this offer.

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Comment #51 by Mario (anonymous) posted on
Mario
Anonymous @ 6:33 pm,

in general one difference between a 12 and 13 month CD could be different withdrawal penalties. However, in WaMu's case the withdrawal penalty is 180 days for terms lower than 36 months, so I don't see much practical difference.

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Comment #52 by Mario (anonymous) posted on
Mario
My wife and I openend the 13-month CD in a Texas branch today. You could tell that the 5% promo was rather quickly planned because it was printed on colored 8 1/2 x 11 paper taped to the entry door rather than a flashy banner.

I was also interesting to see "FDIC insured" prominently written in multiple places on the promo flyer. And among the pamphlets about their products there was what? You guessed it, a pamphlet about FDIC coverage. We also got a very reassuringly official looking certificate for the CD and the financial rep highlighted the words "FDIC insured" on it and explained to us it was FDIC insured. Interesting experience! :)

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Comment #53 by Anonymous posted on
Anonymous
How long after opening can online savings & checking accounts be closed for no fee?

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Comment #54 by Anonymous posted on
Anonymous
If open CD online, the bank will normally mail you the signature card to fill out, I want to know how many days does one have to return the signature card.

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Comment #55 by Anonymous posted on
Anonymous
I have checking and saving account at wamu. When I opened online CDs, I never get any signature cards to sign. I have opened a few CD online so far. I am not sure if this is good thing or bad thing.

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Comment #56 by DollarBill (anonymous) posted on
DollarBill
Anonymous said...
"It used to be that WAMU allowed more money to be added to CDs of 12 months or less during the term of the CD."

According to a CSR I just spoke to, only 12 month CDs opened at a BRANCH can be added to and only for an amount up to the original amount of the CD. ie, if you open the CD for $25k, you can add up to $25k.

CSR also told me you have the option of having the accrued interest paid back into the CD.

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Comment #57 by ShraZZy (anonymous) posted on
ShraZZy
never was hit with a hard credit opening CD but I am a checking/savings member.
Maybe the signature card if for people who only have a CD account with no checking or prior history.

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Comment #58 by Anonymous posted on
Anonymous
For me bad WaMu Karma this morning. I telephoned their 24/7 help line toll-free number listed at the website. Went all through their horrid announcements/menus. Finally voice comes on saying they are CLOSED . . . on a line advertised to be available 24/7!! Today is Thursday. If their belly is slated to point upwards this week, I would not have expected the event to take place until tomorrow, Friday. Whole experience just sort of leaves me with me a negative feeling, a bad first impression.

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Comment #59 by Anonymous posted on
Anonymous
Started the on line application for the WaMU 12 month CD on Sunday. My account just got funded by FNBO today. Funds get transferred faster from FNBO when another bank pulls the cash.

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Comment #60 by Anonymous posted on
Anonymous
anyone knows how long it takes from verify deposit to funding the CD? My application will across the long holiday, concerned that I may not be on time for the 7 calendar days. Thanks

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Comment #61 by Anonymous posted on
Anonymous
The trial deposits go into your account the day after you fill out the application (if it's done on a business day). At least that's my experience. Banking guy gives the exact information in his post updates list above.

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Comment #62 by Anonymous posted on
Anonymous
I have been trying for two days to open 5% 12 mo cd online. Message keeps coming back saying I need to visit branch to open. I have other existing cds with wamu. Anyone else get this message?

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Comment #63 by Anonymous posted on
Anonymous
Our Family Trust Account C/D matured this week at Patelco Credit Union. We asked Patelco to wire-transfer (We don’t know if it was the best way, but it was fast!) 95K to our existing free checking account (also Trust) at WAMU. The service at Patelco was excellent.
We printed out ”Domestic Outgoing Wire Transfer Instructions" form from Patelco web-site, and faxed it back to Patelco before noon as they instructed us. ($18 charge)
We learned that if we send it back before noon, WAMU will receive the funds on the same day

WAMU received it in the afternoon, and funds were available on the same day.
But, they charged $10.00 for incoming funds.
We later learned that if we opened a new account, then, they waived that fee.

After making sure (on the phone) that they put the funds into our free checking account, we went to the branch to open a new 12 month CD.
The rate for 12 months CD at the branch was 1.5% (really!!) instead of 5%. The manager showed us their printed rate sheet.
So we opened 13 months CD at 5% at the branch.

We had a Free Checking Account under our Trust already, but when we wanted to open a new CD account (also a Trust), they insisted that all of the trustees must come in to the branch with their two ID’s. They told us that WAMU's recent new rule was for security reasons.

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Comment #64 by DollarBill (anonymous) posted on
DollarBill
Anonymous said...
"I have been trying for two days to open 5% 12 mo cd online. Message keeps coming back saying I need to visit branch to open. I have other existing cds with wamu. Anyone else get this message?"

I tried applying yesterday on WaMu's web site and got a similar rejection message. I assumed it was because there is a freeze on the credit report. Nonetheless, I tired calling WaMu to find out why I couldn't apply on line. While I was on a lengthy hold with WaMu, I called Indymac Federal from another phone and they were willing to match WaMu's 5% rate. Since I already had another CD at Indymac Federal, getting and funding the new Indymac CD was fast and simple.

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Comment #65 by Anonymous posted on
Anonymous
I opened the 5% 12-mo CD online on Friday (8/29).

I received the emails about trial deposits on Saturday, but haven't seen the trial deposits as of today (Tuesday).

Anyone else who opened their CD on Friday not seeing their trial deposits?

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Comment #66 by Anonymous posted on
Anonymous
I opened the CD on Friday as well. Still no trial deposits today(9/3).

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Comment #67 by Anonymous posted on
Anonymous
The customer service here is awful. I attempted to open a joint account online recently. A week later I get a letter from them claiming they can't verify the identity of the co-applicant (I do this once or twice a month to keep my ladder going and never had this problem before). After two phone calls, waiting for up to 15 minutes each time just to speak with someone, and then getting passed around like a hot potato (and ending up at Fidelity Information Services the first time)no one can tell me what the issue is. The only way to resolve it is to visit a branch or go online and start the app over again. Of course at this point the rate is half a point lower.

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Comment #68 by Anonymous posted on
Anonymous
I just submitted the post regarding the awful service experience with a rejected application. Then I read some of the more recent posts and many express concern over their own applications. Seems that perhaps WAMU had taken enough money at 5%/12 months and were rejecting all new apps until they could lower the rate.

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Comment #69 by Anonymous posted on
Anonymous
I just called WAMU. They said that the trial deposits were made yesterday, and they are in pending status. If I don't see them tomorrow, I will just not verify this since the rate will be lowered to 4.5%.

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Comment #70 by Anonymous posted on
Anonymous
wtf? Wamu debited my Countrywide Savingslink account but didn't credit any trial deposits!

So I'm out $1.xx and no way to verify trial deposits to make a transfer. wtf?

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Comment #71 by Anonymous posted on
Anonymous
I still don't see any trial deposits. I wonder if they will debit my account as well?

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Comment #72 by Anonymous posted on
Anonymous
I opened the CD online on Friday, the last day with 5% APY. Two pending deposits from wamu showed up on my source acct on 9/2 and I immediately verified. Verified on 9/2 and still haven't seen money transferred to wamu yet.

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Comment #73 by Anonymous posted on
Anonymous
Does the 7-day to fund your account mean verifying the deposits? If wamu doesn't pull the money within the 7-day limit, that's nothing much we can do.

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Comment #74 by Anonymous posted on
Anonymous
anonymous: 8:02 AM, September 04, 2008

Why did you say you are out 1.xx?
Wamu made the deposits to your source account, not taking away from yours.

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Comment #75 by Anonymous posted on
Anonymous
When my wife opened her online wamu CD 2 days prior, wamu deposited 2 deposits (for example, $0.50 and $0.61) and then withdrew 1 amount equal to the sum of the other 2 deposits ($1.01).

However, this time Wamu only debited my account $1.xx but didn't deposit the 2 corresponding trial deposits.

I guess no other readers have experienced this.

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Comment #76 by Anonymous posted on
Anonymous
**** them for bringing it back after killing so many applications last week. What a scam.

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Comment #77 by Anonymous posted on
Anonymous
Does opening this CD result in a hard pull on my credit report? It appears from the posts there is a hard pull, and WAMU uses credit report for consideration of their other bank products.

2nd NOTE; BE AWARE FROM NUMEROUS READERS WHO HAVE POSTED BAD CUSTOMER SERVICE WITH WAMU ON THIS POSTING AND OLDER WAMU POSTS. (such as requesting check to close CD account at time of maturity; delays for WAMU in opening your CD account when money was withdrawn from your other institution; instead of trial deposits, trial withdrawals were made;). BE EXTREMELY CAUTIOUS ABOUT WAMU'S ONLINE CDS, SINCE THIS BANK HAS POOR RATINGS IN CSR AND S&P CONSIDERS THEM JUNK.

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Comment #78 by Ripped off (anonymous) posted on
Ripped off
DO NOT OPEN A WAMU CD. I signed up for the 5% 12 month online cd and they stuck me with 4% and have refused to refund my money. The customer service reps are unbelievably rude. Clearly the attitude there is the doors are going to close soon and the customer can you know what.

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Comment #79 by virgquest (anonymous) posted on
virgquest
Just spoke to a WaMu CSR about a CD I'd opened over the phone and she mentioned that the 5% 12/13 month CDs are due to end today. So if anyone else out there wants to stick $$ in WaMu/Chase, now's the time!

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Comment #80 by Anonymous posted on
Anonymous
I spoke with a WaMu rep by phone yesterday about the 12-13 mo. CD offer and was told that the rates changed after the Friday close. I asked if they could go up from the 5% yield and she said no. I asked if they would go down and she said they could. Looking on the site this morning (10/04) it looks to have remained unchanged and still available. I assume from this that the deal will be available for another week. I opened mine by phone and they will hold the rate for 7 days if you are sending a check.

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Comment #81 by Anonymous posted on
Anonymous
I opened up another one this morning as well. Rate is still 5% for 12/13 months.

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Comment #82 by Anonymous posted on
Anonymous
To anonymous 9/4/08...

Why would they ask to verify an external account again using trial deposits if you just opened up a CD using it two days prior? That account should be considered a current external funding account in their system. I suggest you look at your account again. The one trial withdrawal totals the two deposits.

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Comment #83 by Anonymous posted on
Anonymous
The 8, 12, and 13-month specials are still available online. Maybe someone forgot to take them down....

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Comment #84 by Anonymous posted on
Anonymous
Attempted to open joint 5% cd online on 9/29. Still no small deposits. No email response either. Called and was put on hold while CS checked to see what the hold up was. She came back and said we should be getting a letter IN A WEEK OR SO explaining why the delay. We're still pending. I said I could understand the delay if we were borrowing their money instead of depositing our money. I'm wondering if we should just forget this whole thing. Opening a CD shouldn't be like this!!!

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