Dedicated to Deposits: Deals, Data, and Discussion

Best Bank Deals of the Day


Update 12/24/08: Rates are falling fast after the Fed's historic rate. I listed almost 30 banks that have cut their savings account rates in my Saturday weekly rate summary.

You still can lock into a 5% CD. There are four 5% 60-month CDs that are still available as of 12/22/08 (see post). Is 5 years too long? I discussed this issue in this post.

It appears WTDirect has extended its $250 savings account bonus. It had been scheduled to end on 12/22/08, but it's now good through 12/31/08 (see post).

I recently did this post on two $150 checking account bonuses that are scheduled to end on 12/31/08.

For my full list of savings account and CD rates with links to reviews, please refer to my weekly rate summary. Rates are dropping FAST, so please check with the bank or credit union for the latest rates. If rates have gone down, please leave a comment in the post.

If you want to leave a comment on these deals, please click the "readers' comments" link above. If you find a good bank deal or an interesting banking news story, please leave a comment in the finding the best deals post (red "Comment here" link on the right).

Related Posts

Comments
69 comments.
Comment #1 by sligg (anonymous) posted on
sligg
Wamu is on shaky ground. The prediction is they will probably go belly up within 3-6 months. As enticing as 5% is one has to be cautious buying into their CD's

1
Comment #2 by Bozo (anonymous) posted on
Bozo
Sligg, as much as I have loved rate-chasing over the past two years, I'm developing a depression-era mentality about banks. I really, really, don't want to have to fight with some FDIC bureaucrats if one or more of my Mom's accounts (held in the family trust) is in a failed bank.

But, then, what are you going to do? It's a flip of the coin which bank fails next. My guess would be either WaMu or Wachovia. I just hope they don't bulldoze the local Wachovia branch before we get our stuff out of the safety deposit box.

1
Comment #3 by Anonymous posted on
Anonymous
Maybe we should cast a vote/take a poll on this forum as to which bank will fail--Citi, WAMU or Wachovia?

It would be interesting to see the votes and results.

Can this be done?

1
Comment #4 by Banking Guy (anonymous) posted on
Banking Guy
I'm going to have to be careful discussing future bank failures. I don't want to be accused of starting a bank run:

The blogs were a bit out of control,"Sheila Bair, chairman of the Federal Deposit Insurance Corp., told the San Francisco Business Times after a speech in San Francisco this week.

source

1
Comment #5 by Michael (anonymous) posted on
Michael
Banking Guy, I don't think you have done anything wrong.

You are performing a service.

You are only stating information that is already known.

You are not divulging secret information.

I wouldn't change a thing.

Your warnings that a bank might be experiencing some trouble and that we should watch our insurance coverage is helpful and appreciated.

You never state that a bank will fail. You only state that a bank might be hurting and that we need to tread carefully.

Thank you.

1
Comment #6 by sligg (anonymous) posted on
sligg
Help: I opened several CD's at Wamu three weeks ago @ 4.5%. The current rate is 5%. Does it pay to close these CD's, pay the penalty and open new CD's @ 5%?

1
Comment #7 by Anonymous posted on
Anonymous
It seems that it's the commenters here who foment runs, not the original blog posts. I'm disgusted by people who say that they won't put their money in bank X, because it seems like it might fail, because they're only encouraging others to do the same.

1
Comment #8 by Anonymous posted on
Anonymous
Maybe banking guy should do a post on not running scared on a bank. All people need to do is stay under the FDIC limits and spread their money around a little.

1
Comment #9 by Anonymous posted on
Anonymous
Hey, banking guy just put money in it, so what's the fear? LOL!

1
Comment #10 by Anonymous posted on
Anonymous
Indymac matches Wamu on 5% atleast for me.

1
Comment #11 by avenueroo (anonymous) posted on
avenueroo
the jumbo 3 month cd at park ave bank in ny has ended, i called this morning.

1
Comment #12 by Anonymous posted on
Anonymous
Just signed up for WAMU'S 13 monthe 5.00% apy at a NJ branch.

No problem Asked if we wanted savings/checking accts. we declined. No pressure.

1
Comment #13 by Anonymous posted on
Anonymous
WaMu's signature card for its CD's has an "account title" section, so explicitly labeled. WaMu refuses to add POD or ITF to that section, saying that this information is elsewhere on the signature card.

We got the FDIC on the phone, and the FDIC insurance person told the Bank manager the account did not comply with FDIC standards. The Bank manager said it did, had been cleared by the Bank lawyers, and the FDIC was wrong.

I am thinking of getting media involved, because WaMu is probably putting lots of POD customers in jeopardy of total loss.

1
Comment #14 by Anonymous posted on
Anonymous
And who you going to trust? Certainly not WaMu...

1
Comment #15 by O-Qua Tangin Wann (anonymous) posted on
O-Qua Tangin Wann
7:12 p.m.: You cannot trust what the WaMu employees tell you, even if it is the bank manager.

The bank MUST put the letters POD or ITF in the account title. For example: "John Doe POD"

Do not take "no" for an answer.

If they refuse, find another bank paying the rate you want who will be more than happy to type those three little letters inside your account title.

I got AARP Savings (when they were at 4.75%, of course) to add "POD" right after my name. All my correspondence from them had "POD" after my name. It was reassuring.

I got Wachovia to do it.

Threaten to remove your money and they will do it.

Fight the good fight!

(Or, just keep under $100,000 in WaMu and be done with it.)

~O-Qua Tangin Wann

1
Comment #16 by sligg (anonymous) posted on
sligg
I opened six CD's online and I had to go to a branch to fill the paperwork to add a beneficiary to each account (POD). I could not do this online. Kind of archaic.

The hold time before Wamu releases funds is horrendous. It took 17 days on one account.

1
Comment #17 by Anonymous posted on
Anonymous
WaMu Branches in Oregon allowed the 5% for 13 to 17 months...

1
Comment #18 by Anonymous posted on
Anonymous
Banking Guy-

I have to agree with your gut regarding how you package things on the website.

I'm a smart guy, but it took some time to navigate through your site as well as FDIC's to determine that

1) All is well if you are well under FDIC limits.

2) If you are under FDIC limits, your interest and principal are both insured

3) If you have a CD - you can't access your pricipal for the term, so waiting a few days or even a month for FDIC to figure it out isn't going to limit access. (though its wise not to put 100% of your eggs in one basket in the event there is an emergency)

4) You continue to be paid interest should the bank be taken over by FDIC. I'm still not 100% clear on this point...I seem to recall that Bank of America decreased the rate on CD accounts when it took over Union Bank on the west coast (in the 80's) though that may not have been an FDIC related event it may have just been a merger/takeover.

5) FDIC limits can be greater than 100k, though doing so is tricky and requires some careful wording that the bankers aren't all aware of.

I would suggest creating a master post about the FDIC facts that offers links to particular FDIC pages describing the above coverage and link to it on every post.

You do offer a great service and I'm glad you recognize your responsibility given your potential impact.

My two cents-
MB

Now I have to help my hard working inlaws - just learned they have over $100k and were told by their bank they were ok because it was split between a savings and checking account. Good grief...

1
Comment #19 by Anonymous posted on
Anonymous
"Now I have to help my hard working inlaws - just learned they have over $100k and were told by their bank they were ok because it was split between a savings and checking account. Good grief..."

If both of these accounts are joint accounts and these are the only joint accounts either of them is a party to at that bank, then the combined total of the two accounts is insured up to $200k.

1
Comment #20 by Paul Foster (anonymous) posted on
Paul Foster
To MB at 7:18 a.m.

You write that you are a "smart guy" and yet you do not recognize that Banking Guy is being very conscientious on his reporting. He is exceptionally thorough. Nothing he writes is difficult to understand or figure out. Nothing he writes could cause misunderstanding or panic. In my opinion, Banking Guy is doing a perfect job. He doesn't need to change a thing.

As a blog fills up with data, it becomes more difficult perhaps to find every pertinent piece of information that each individual might need. Banking Guy does a fabulous job placing links to that information. And of course, one could just use the search link. And then there is Google, etc.

1
Comment #21 by Anonymous posted on
Anonymous
Forget the hassle at WaMu; just phone Indymac. They will be happy to match WaMu's rate, even if you are new money & not just renewing an old CD. I just did it and it couldn't have gone smoother. They give you 12 calendar days to fund. Thank you Indymac CSR "Wendy" :)

1
Comment #22 by Anonymous posted on
Anonymous
Best thing to do is check Bank deals once a day or more. Than you don't miss anything and have to search. It seems the people that complain are the ones that visit infrequently. It only takes a minute a day, folks, and your financial well being is worth it.

Unlike most of the other bank blogs I have found, this one has new and updated info everyday. Banking guy does a terrific job with what he has to work with!

1
Comment #23 by Anonymous posted on
Anonymous
Banking Guy does an EXCELLENT job on explaining all bank, S&L, credit union offers listed here. He also is very kind to clarify and link to FDIC website for insurance related questions. I would suggest that FDIC hire Banking Guy to re-write their current brochures as he says it simply but completely.

Let's all support Banking Guy by reporting all local specials to him so the Blog can continue to grow in value to all savers!

Thanks again for all your help in finding great interest rates!!

OC Steve

1
Comment #24 by anonymous77 (anonymous) posted on
anonymous77
I don't see anything about an 8/29/08 expiration for WaMu's 5% 12/13 mo. CD offer.

Where is that?

https://online.wamu.com/banking/offers/Campaign001/landing/Online_CD?hmelnk=phpocddbprop013108
http://www.wamu.com/personal/certificate_deposit/online_cd/default.asp?SourceID=olcpropb7217

1
Comment #25 by anonymous77 (anonymous) posted on
anonymous77
There seems to be a problem entering URL's here. The second URL in my previous post should have been:

http://www.wamu.com/personal/certificate_deposit/online_cd/default.asp?SourceID=olcpropb7217

Hope it gets through this time.

1
Comment #26 by anonymous77 (anonymous) posted on
anonymous77
No, did not work. Bank Guy, are you aware of this (i.e., URL truncation)?

1
Comment #27 by anonymous77 (anonymous) posted on
anonymous77
The first URL (3 posts back) didn't make it either.

Add the following to the URL as shown:

/landing/Online_CD?hmelnk=phpocddbprop013108

1
Comment #28 by Anonymous posted on
Anonymous
Just want to add to what some others have already said. Bankguy does a terfic job on this site. I appreciate all the work Bankguy puts in everyday updating infor. That's work! Thank Bankguy!

1
Comment #29 by Anonymous posted on
Anonymous
I want to second the praise for Banking Guy. I visit this site EVERY DAY. It is SO helpful. Found out about the 7 month 5.1% CD at WAMU in January that just matured and the 5% 12/13 month CD that I rolled it into. Also the rates on all the different money markets. This is MY #1 Financial web site.

THANK YOU BANKING GUY !!!!!

1
Comment #30 by Anonymous posted on
Anonymous
As a daily reader of your site, I really like your new format with the most recent comments posted up front. This is by far the most informative site for those of us with CDs. Thanks a lot.

1
Comment #31 by Anonymous posted on
Anonymous
According to WAMU CSR, the 5% CD rate is good until close of banking today, central time. New rates will be posted at that time.

Up or down - that's is the question.

1
Comment #32 by Anonymous posted on
Anonymous
Wamu now 4.5% for 12-mo.

1
Comment #33 by Mocirne (anonymous) posted on
Mocirne
Definitely want to *third* the praise for Banking Guy. Through the seriously hard work and time taken out to research, type out and format all this information for complete strangers, he has helped us all gain some serious cash.

Also, remember to do all your purchases at Amazon by clicking on his Tip Jar Amazon link first so he at least gets a little money for doing all this.

1
Comment #34 by Anonymous posted on
Anonymous
Georgia's Integrity Bank fails

http://money.cnn.com/2008/08/29/news/economy/integrity_bank/index.htm?postversion=2008082917

1
Comment #35 by Anonymous posted on
Anonymous
I just tried to open an account with Addison Avenue Credit Union online. I had previously called their CSR to ask questions. Don't believe anything they tell you. They don't train their people. The CSR said I could have an account opened by the next day using the online system. Wrong! They said I could fund the account with my Visa account with no fees! Wrong! They may have good rates but their consumer service is way below par.

1
Comment #36 by Anonymous posted on
Anonymous
Which bank is best to have my savings funds in now?

1
Comment #37 by Anonymous posted on
Anonymous
Hey Bank Guy,

I do like the new "Best Bank Deals of the Day" section, but I wonder if it would be better if you just updated it/put it at the top of the list once a day (at the end of the day). As it is, it's not as easy to see if new updates have been posted. Just a suggestion.

1
Comment #38 by Banking Guy (anonymous) posted on
Banking Guy
Perhaps just a link at the top of the page to this post without having this post always on top.

I was afraid that some readers (especially new ones) may have trouble finding the really-good-deals posts from all the other ones since these quickly get buried.

1
Comment #39 by Anonymous posted on
Anonymous
Builders Bank in Chicago is advertising a 4.75% 15 month CD. Here is the ad in the Chicago Tribune:
http://www.buildersbank.com/img/tribune_71702.pdf

1
Comment #40 by Anonymous posted on
Anonymous
FYI _ Went to my WaMu branch today; the rep said the 5% CD will be back tomorrow (Sat 9/6) for another week.

1
Comment #41 by Anonymous posted on
Anonymous
The Dime Savings Bank of Williamsburgh located in brooklyn, NY is offering online a 12 Months CD with APY of 5.00% Tel: 1-800-321-3463

1
Comment #42 by rkp (anonymous) posted on
rkp
My local WAMU branch manager just called me and said that 5% is back tomorrow morning. I am going to go in and open a CD for sure.

1
Comment #43 by Anonymous posted on
Anonymous
There are clear signs that US Bank that is headquartered in Minnneapolis, MN (the same place as our dear convention) may be about to go under. Multiple unexplained account closures and threats of closure and seizure have been made under the guise of the unconstitutional US Patriots Act. These accounts which have had significant amounts money and cashflow which US Bank does not pay for or give interest to, have been closed due to pressures and inquiries from clients about the bank's solvency, credit worthiness, and legal obligations to customers under federal law.

This a ominous sign of the continous perils of the US Financial and Banking system and US Bank in particular as the next domino in the failing bank chain. WE HOPE we may be WRONG, but history and more recent events leave the outlook very bleak.

1
Comment #44 by Anonymous posted on
Anonymous
WSJ is reporting:
Regulators Shut Silver State Bank

David Enrich / WSJ
Silver State became the latest in a series of bank failures and one that could ripple through the presidential campaign. Until recently, one of Sen. McCain's sons was on the committee responsible for overseeing the company's financial

1
Comment #45 by mk (anonymous) posted on
mk
Silver State Bank of Henderson, Nevada was closed by U.S. regulators today, the 11th bank to collapse this year amid a surge in soured real-estate loans stemming from the worst housing slump since the Depression.

source: Bloomberg

1
Comment #46 by Anonymous posted on
Anonymous
The 5% online CD is indeed back. I just opened an account and funded it from another Wamu savings account with no problems.

1
Comment #47 by Anonymous posted on
Anonymous
Hi Bank Guy:

Love the blog. What a great public service!

Just opened up two 5.00 percent WaMu CD's online. Both 12 month and 13 month CD's are available on the website. Missed them the first time, but saw your post and checked this morning.

One I haven't seen here but is at Bankrate is the 5 year 5.35 percent APY CD's at Wachovia. They are not on the website but I called and confirmed the rate with the CSR. You have to make an appearance at a branch with ID, but the other information can be taken over the phone. Minimum deposit is $1,000.

Thanks again for the info on your blog!

1
Comment #48 by Jim (anonymous) posted on
Jim
If people are having problems with long urls, you can try things like snipurl.com or tinyurl.com

1
Comment #49 by Anonymous posted on
Anonymous
WAMU is on the dreaded FDIC list.

DOW JONES NEWSWIRES

Washington Mutual Inc. (WM) ousted Chief Executive Kerry Killinger while also announcing it entered a memorandum of understanding with the Office of Thrift Supervision, meaning the bank is now effectively on probation.

The memorandum of understanding comes as federal regulators have increased the number of struggling banks they have effectively put on probation, forcing them to fix their problems and try to avoid potentially costly failures. The secret agreements can force banks to take steps including raising capital, cutting back on risky loans and suspending dividend payments.

For regulators, the memorandums are an early-warning system about troubled banks but aren't meant to imply that a bank is at risk of failing. They are often a precursor to more-severe, publicly disclosed enforcement actions if conditions don't improve.

1
Comment #50 by Anonymous posted on
Anonymous
Killinger (WAMU's CEO) transformed Seattle-based WaMu into a national giant in mortgage lending and consumer banking via a string of mergers in the 1990s. But he also made some costly mistakes with the company's mortgage-hedging operation that undercut profits during a mortgage boom. He pursued an aggressive retail expansion marred by poor locations in too many markets.

Then he steered WaMu into subprime mortgages, only to discover too late that it was lending to many unqualified borrowers. Sinking home values in California and other WaMu markets dealt a heavy blow.

1
Comment #51 by Anonymous posted on
Anonymous
indymac just matched my 4%APY to WAMU's 5%APY and extended 12 months.
FYI.

1
Comment #52 by Adam (anonymous) posted on
Adam
Alan Fishman is over at WaMU now.

He was previously at Independence Community Bancorp.

Independence was a very small community oriented bank which had nothing to offer.

Now as for WaMU, it doesn't have anything to offer either.

So which Bank is now the best to use in NYC market?

:O

1
Comment #53 by Anonymous posted on
Anonymous
WaMu phone CSR told me this evening 9/8/08 that 5% APY deal is scheduled to end 9/12/08

1
Comment #54 by Anonymous posted on
Anonymous
So if a bank were to fail, does the FDIC also cover outstanding interest payments, as long as the total amount of savings and interest does not exceed 100k?

Thank You

1
Comment #55 by Anonymous posted on
Anonymous
To Anonymous, at 10:10 PM, September 08, 2008


YES

But, it may be a long delay in paying the FDIC insurance due to the size of WAMU.

1
Comment #56 by Doug (anonymous) posted on
Doug
Banking Guy, I say toss the "Best Banking Deals of the Day". As part of their due dilegence, new readers should be able to sift through a week of deals, and regular readers have to skip this article every time.

1
Comment #57 by Anonymous posted on
Anonymous
BG, Doug is right.
Old format was better.

1
Comment #58 by Anonymous posted on
Anonymous
I agree with Doug and Anonymous 6:57. Scratch it from the top and put it as a separate link.

1
Comment #59 by Banking Guy (anonymous) posted on
Banking Guy
3 votes for and none against. So it passes... This Best Deals of the Day post won't move to the top any more. I just added a link to it that'll remain on top. Let me know if you have any other suggestions. Thanks.

1
Comment #60 by Doug (anonymous) posted on
Doug
The separate link is perfect! Thanks BG for the change.

1
Comment #61 by fife (anonymous) posted on
fife
I share the thoughts expressed earlier with having to scroll past the "Best Deals" post or look at the list of recent posts on the right. I like the small footprint of the link at the top of the blog, easily accessible if desired. Thanks for the quick response to feedback BG, keep up your great efforts!

1
Comment #62 by Anonymous posted on
Anonymous
Replacing the "Best Bank Deals of the Day" article with just a link at the top is a great idea, Banking Guy.

My only suggestion would be that you change that topmost link to reflect the latest/biggest headline as needed, if that is possible. That way, it takes up only one line (or possibly two), but allows you to alert everyone about the most important info.

BTW, I must also take this opportunity to thank you for the (literally!) valuable service you provide by maintaining this site and keeping all of us up to date on the current deals. Great job!

1
Comment #63 by Anonymous posted on
Anonymous
If I were to go to a branch and open the CD there, do I have to fund the account right away or could I wait a couple of days?

Thank You

1
Comment #64 by Roger (anonymous) posted on
Roger
Banking guy - You're link at the top of the main page is still pointing to this page, which seems incorrect. This page isn't getting updated - there's no reference to CNBBankDirect for example, even though it's mentioned in your link.

1
Comment #65 by Banking Guy (anonymous) posted on
Banking Guy
You might need to refresh your browser's cache. My last update was on 9/23, and CNBBankDirect is mentioned on the second paragraph.

1
Comment #66 by Mocirne (anonymous) posted on
Mocirne
I'm getting updates on this page fine. Looks like WaMu has definitely been forced into a sell with JP Morgan Chase, meaning the lifespan of their 5% CD and 4% savings accounts deals will likely end relatively fast. Great time to jump on the 13 month CD and get as much interest as you can from it.

Obviously, as the infinitely benevolent and wise Banking Guy reiterates over and over, KEEP THE (principal + expected interest) below $100,000! This bank WILL go under, there is a virtual certainty of that. Once it does go under and Chase takes over, Chase may decide to keep the rates. If not, you will receive your principal AND all accumulated interest up until that point.

1
Comment #67 by Anonymous posted on
Anonymous
Announcement just came out. Not sure what will happen to those 5% CD but should be OK, I think.

FDIC seizes WaMu. Largest bank failure in U.S. history; JPMorgan buys $1.9B in WaMu assets.
In a statement, JPMorgan Chase said it was not acquiring any senior unsecured debt, subordinated debt, and preferred stock of Washington Mutual's banks, or any assets or liabilities of the holding company, Washington Mutual Inc.

1
Comment #68 by Anonymous posted on
Anonymous
A comment about a specific experience I just had funding a WaMu online CD (and may apply to other institutions):

To fund this CD I set up an external account via the usual ACH micro-deposits. Those deposits, and a reversing debit went through fine. But when I went back to my account on WaMu's web site to verify the deposits, I was informed that the funding could not be completed, as the external account was closed (not true).

After 30 min on the phone with two WaMu reps (both very nice) and their back office, it turns out that I had clicked on "Checking Account" when setting up the external account, when in fact, the account is a "Savings Account" (the account was a UFB Direct account, and I mistakenly assumed it was a MM checking acct). WaMu's verification system invalidated this mis-match as a security measure.

The advice was to re-enter the same ACH and acct info as a new external account and this time correctly mark it as a Savings Acct. New micro-deposits will be made, and I hope this time the funding will complete.

WaMu also informs me that interest will accrue from the date the online CD was set up.

My only negative comment is that it would have been much better if the automated verification system gave more detail as the cause for rejection, not the mis-information that the external account was closed.

1
Comment #69 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!

1