Bank officials at the mortgage lenders say the changes aren't related to the recent difficulties they have had trying to raise money in the secondary market to fund new loans, as investors back away from subprime loans and other perceived credit risks. Nevertheless, analysts say the moves should help lenders such as Countrywide that are having trouble raising money in the commercial-paper market.
Here's a summary with links to my posts of the deals being offered by the banking units of some major mortgage lenders:
- Countrywide Bank: 5.65% APY 12-month CD, 5.50% 3, 6, 9-month CDs, 5.50% savings account (post)
- IndyMac Bank: 5.75% APY money market account, 5.55% APY 5-month CD, 5.50% APY 12-month CD (post)
- Washington Mutual: 5.50% APY 6-month Online CD (post), 5.45% APY 8-month branch CDs in some states (post)
- Capital One: 5.20% APY Money Market Account for Costco members, 5.00% APY for High Yield Money Market (post)
The article also describes the concerns of depositors regarding the financial health of these banks. If you keep below the FDIC limits, you should be safe. However, you have to be careful about maintaining FDIC coverage if you have deposits over $100K at one bank. See my previous post on this issue.
Thanks to the readers who emailed me info on this article.