I just found this out, starting tomorrow 8/23 thru 8/29, WAMU is offering a 13 month, 5.00%APY CD. It will be available in the branches, online, or by phone.
**UPDATE: Looks like the promotion is back on starting tomorrow 9/6 thru 9/12**
13-17 month term when I called to renew traditional CD
Online CD must be closed at the end of term. Cannot be renewed. Traditional CD allows you to add additional fund up to the original deposit.
Minor note: 12 month or less CD's get better delayed tax treatment (all is interest taxable at maturity, none this year). For longer than 1 year CDs, interest is taxable for year it's earned. Might make you want to choose a 12 over a 13 month CD if you're tax rate is flat or rising.
6. Will I continue to earn interest at the same rate?
All interest on deposits accrued through September 25, 2008, will be paid at your same rate. JPMorgan Chase Bank will be reviewing rates and will provide further information soon.
Message edited by: manuvns on 2008-09-26 08:56:53 CDT
I just confirmed with my WAMU bank and indeed they are offering a 13mo CD 5%APY starting Saturday 8/23 and ending 8/28.
I think I may take them up on this special. Just received $30K and I had planned to it invest the money in one of my MM funds, but this sounds pretty good.
I need to get in on this but have been unable to open with them because of my security freeze. So I just called and was told they pull through Equifax and will need to unfreeze. Figure for 5% I can take the hard hit
This is definitely a sign of desperation from a one star bank. But as long as some stupid Senator does not make comments on them they should be bringing in more than enough new money with these great rates to keep operating
swandown said:When WAMU goes under, will the FDIC continue paying out the 5% for the duration of the term? With Indymac they did because they took them over. I think with WAMU it will depend on what happens when/if they fail. Normally the the FDIC tries to get another bank to take the accounts but like Indy they might be to big for that
swandown said:When WAMU goes under, will the FDIC continue paying out the 5% for the duration of the term?
That brings up a good opportunity. Let's start a FWF bank, issue 20% CDs with FDIC insurance, then fail. We'll all put our money into them, and be covered.
walletfart said:swandown said:When WAMU goes under, will the FDIC continue paying out the 5% for the duration of the term?
That brings up a good opportunity. Let's start a FWF bank, issue 20% CDs with FDIC insurance, then fail. We'll all put our money into them, and be covered.Actually, with Indymac, they stopped paying interest (at least on the brokered CDs) before the end of the term. People ending up getting effectively 3.6% APY instead of 4%. source. So the FDIC doesn't always continue paying out interest. YMMV.
theman2 said: Actually, with Indymac, they stopped paying interest (at least on the brokered CDs) before the end of the term. People ending up getting effectively 3.6% APY instead of 4%. source. So the FDIC doesn't always continue paying out interest. YMMV. That was only on brokered CDs, Ones opened through Indymac held rates
scott1961 said:theman2 said: Actually, with Indymac, they stopped paying interest (at least on the brokered CDs) before the end of the term. People ending up getting effectively 3.6% APY instead of 4%. source. So the FDIC doesn't always continue paying out interest. YMMV. That was only on brokered CDs, Ones opened through Indymac held ratesWere you able to keep the CDs at the same rate after the bank failed or were they liquidated?
theman2 said:scott1961 said:theman2 said: Actually, with Indymac, they stopped paying interest (at least on the brokered CDs) before the end of the term. People ending up getting effectively 3.6% APY instead of 4%. source. So the FDIC doesn't always continue paying out interest. YMMV. That was only on brokered CDs, Ones opened through Indymac held ratesWere you able to keep the CDs at the same rate after the bank failed or were they liquidated? I did not have any CDs, Only the Money Market. But in the Indymac thread many did have the CDs and had the option of continuing unchanged or could break it with no penalty
theman2 said:scott1961 said:theman2 said: Actually, with Indymac, they stopped paying interest (at least on the brokered CDs) before the end of the term. People ending up getting effectively 3.6% APY instead of 4%. source. So the FDIC doesn't always continue paying out interest. YMMV. That was only on brokered CDs, Ones opened through Indymac held ratesWere you able to keep the CDs at the same rate after the bank failed or were they liquidated?
Custom Term CD (300-329 days) 29XXXXXXXX Certificate of Deposit XX,XXX.XX XXX.XX 3.970% Mar. 25, 2009
I was surprised when one of the loan officers called me to ask if I want to renew my CD which ends 8/23/08. I was asked to renew at 5.0% for 13 month, one-week only promotion that they are having. At that rate, I said sure, go ahead. It was nice that they called because I was going to come and try to sort out what to do with my expired CD. Great timing.
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