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Lock in 4.00%+ CD Rates While You Can!

J. Wu Posted in CD Rates by J. Wu
March 11, 2008 09:21 AM - 21 Comments

bernanke.jpg Ben Bernanke and all the other clowns at the Federal Reserve are meeting on March 18, 2008 to cut interest rates AGAIN.

Be warned that futures traders are considering the possibility of a full 1.00% cut!!

I kid you not. Per this article on Bloomberg.

“Interest-rate futures show a 10 percent chance the Fed will cut by 1 percentage point its overnight target lending rate between banks to 2 percent next week. The rest of the bets are for a 75 basis point cut.”

Personally, I am expecting a 0.75% cut, but with this 2nd wave of foreclosures and more bad news looming, there is a chance that the Federal Reserve is desperate enough to cut a full 1.00%. CRAZY huh?

Say Good-Bye to 4.00%+ Interest Rates
I’ve been talking daily with managers at online banks, and many have already preemptively cut deposit rates. From the banks I polled, they are all expecting a 75 basis point cut as well.

Right now, WaMu is still holding strong with their 4.00% online savings account. However, it is highly unrealistic that they will be able to hold this rate after March 18, regardless of whether rates are cut 0.75% or 1.00%.

Lock in 4.00%+ Rates with Certificate of Deposit Accounts
My contact at WaMu tipped me off about a “flexible 9-month 4.00% CD” promotion that they are currently running in brick & mortar branches. Basically, you can get 4.00% APY for 9-months guaranteed, and you can deposit additional funds to your account over time. However, like traditional CDs, you cannot withdraw early.

I’ve verified this at a few Southern California WaMu branches, and they say this promotion expires March 28.

For those who want to lock in rates long term, Indymac Bank is running a 4.05% APY 12 month -or- 18 month CD account promotion.

If you’ve been on the fence about opening a CD, I strongly urge you to do it now before March 18! Use Bankaholic’s CD rate table to find a bank suitable for you.

It will be a long and painful ride as we delve deeper into these troubled financial mess. I’m just as angry as you are about the country’s irresponsible monetary policies. Unfortunately, we cannot do anything about it except educate ourselves and adapt. Dump the US dollar. Stay out of debt. Protect your wealth in hard assets and commodities.

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Comments (21)
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  1. WB said:
    on March 11th at 07:58 pm

    agreed- lock in now before rates get cut again, otherwise throw money in the market and wait till the upswing. Depends on the personal risk tolerance.

  2. Jarod the Pretender said:
    on March 11th at 07:59 pm

    whats the highest rate i can get for terms longer than 3 years?

  3. Michael said:
    on March 12th at 02:10 am

    Capital One has a 10 year CD for 5.00%, Jarod. Don’t know how long of a term you’re looking for though.

  4. Rebecca said:
    on March 12th at 03:19 pm

    I am looking for a savings account with a good interest. maybe the flexable CD would be better. Any ideas?

  5. Chewy said:
    on March 14th at 12:06 am

    I love how the Republicans are supposed to be the responsible ones when it comes to monetary policy.

  6. Jerry-Denver, CO said:
    on March 16th at 12:58 am

    WaMu, Denver, CO It’s 8 Month promotion 3.93% (%4.00 apr.) In branch, must ask for it. New money, It has ADD-TO feature up to amount of original opening amount. ends this comming week (before the 28th). I’ll roll some of my May maturity Wacovia after payoff of B.A MasterCard promotion. Thanks for the WaMu post.

  7. Jarod the Pretender said:
    on March 16th at 01:02 am

    Yep, I personally opened a WaMu ADD TO CD in California. Only works in brick and mortar branches.

  8. Jerry-Denver, CO said:
    on March 16th at 10:56 pm

    I checked all my current credit cards for Bal-trans/Cash-adv: existing US Bank Visa has 9 billing cycle Balance transfere, 1.99%, no fee, payback 1% of bal. + interest each month. I don’t have to wait till May to do the ADD TO CD at WaMu.

  9. Marty said:
    on March 17th at 02:54 am

    Thanks for the CD tips. Bernake lowered the discount rate tonight so I’m trying to lock my money in a CD before the rate falls.

  10. skwids said:
    on March 17th at 06:31 am

    How come Bankrate.com doesn’t list all the high rates…. the 4.01% by Indymac for example? They don’t mention Transportation Alliance Bank, or Armed Forces Bank either.

    Are they being paid to list certain banks? I’m losing faith in their listings.

  11. Jerry-Denver, CO said:
    on March 17th at 03:34 pm

    Hello Skwids, These posts/comments pick up the things that missed publicaltion time, We are the ARGUS with a thousand eyes. I’ll check out the Indy. Trans.Aliance, & Armed forces.

    Jerry

  12. Stuart said:
    on March 17th at 08:37 pm

    The time to have locked in with a CD was last year, if you had funds available, when you could still get 5.50APY+. To do it now is just a knee-jerk reaction. Remember, CDs are a trap, designed to make banks money (not you), and it generally takes at least a 6.00% return over the long haul JUST TO BREAK EVEN AFTER TAXES AND INFLATION!

  13. Jerry-Denver, CO said:
    on March 17th at 09:50 pm

    The Bank of Denver has a 6 mo. CD, @ 3.30%, renewable at same or higher in effect. unlimited add-to $1000 or greater. $2.500 min opening & one time withdraw up to half no penalty good till 2008/03/31

  14. Lulu-CA said:
    on March 19th at 11:13 pm

    if i opened a wamu savings last month and the rate is cut by 1%, all i’ll earn is 4% or does it mean i locked it in at 4%? does the lock in only apply to CDs? thanks

  15. Lulu-CA said:
    on March 19th at 11:13 pm

    ^ i mean 3%

  16. David said:
    on March 24th at 07:16 pm

    What is a “brick & mortar” branch?

  17. Inndesign said:
    on March 27th at 01:43 am

    “Brick and Mortar” is a internet term coined in the last 90’s referring to a store or business in a physical form as a building. It reflects on the physical properties used in a buildings construction. A “Web Presence” would be the digital version, but in reference to internet commerce verses a building.

  18. Kent said:
    on March 28th at 02:35 am

    are CD accounts even worth it? if i have 150,000 to invest, what’s the safest/best route to go?

  19. Hana Hawaii said:
    on April 2nd at 09:51 pm

    Patelco Credit Uniton has $50 bonus on new checking account with $100 direct deposit for 3 months. Not a bad deal for now. They also offer 4% 12months CD with min $1,000. I like them a lot.

  20. Mike said:
    on April 15th at 03:17 pm

    What everybody needs to do who wants to invest money with very little risk and the highest return on investment needs to do is use Prosper. The interest you earn is higher than ANY CD, Savings, etc… Any with only a $50 minimum, no maximum and any number of accounts, you can build a portfolio and invest $50 an unlimited amount of times or $1,000 once. Returns are anywhere from 7%-35%, you choose! I have been investing on this site for a while with great success, I love it! Plus, while you are investing, you are helping others and lets face it, even the best bank that you love doesn’t care about you, they are out to make as much money from you as they can, this method helps us stick it to the banks, this is not a bank. New investors earn a $25 bonus for signing up, check out my listing first using the link, then I invite you to check out the whole site.

  21. Mike said:
    on April 15th at 03:19 pm

    In case you don’t know, click on my name to visit the website link. I just found that out myself.

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