WaMu (Washington Mutual) just ramped up their online savings account rate to 4.00% APY today.

As of now, a complete failure of WaMu seems highly unlikely since there are many potential bidders examining their assets. In addition, the US Treasury has also set a hazardous precedent of bailing out companies that are “too big to fail”. Nevertheless, stay aware of FDIC insurance limits.

Bankaholic reader Jim B. wrote in to tip me off on a 5.00% APY 6-month CD (certificate of deposit) rate over at Dime Direct.

The catch is that you have to open a checking account ($5k min to avoid fees) to take advantage of this hot CD rate.

I’ve never heard of this bank, but nevertheless, this is still one of the highest rates out there.

You must have seen it in the news by now. Washington Mutual is up for grabs to the highest bidder. Who will it be? Whatever happens, I sure hope that Americans tax payers won’t be footing the bill for this sale… n

The FDIC (Federal Deposit Insurance Corporation) has released an interesting tool called EDIE the Estimator that can calculate your FDIC insurance coverage for each FDIC-insured bank where you have deposit accounts. EDIE lets you know in a printable report for each bank whether your deposits are within or exceed coverage limits.

Basically you type in all your account balances, and ownership type (individual, joint, IRA, etc) and it will generate a printed report on whether your balances are insured.

Citibank is running a deal on their checking account. Get $100 when you open a Citibank regular checking account and fund it with a minimum of $1,000 by 12/31/2008.

There IS a catch however. You must make at least one direct deposit into your account -OR- make at least two electronic bill payments from your account each month for three consecutive months.

With the stock market in such a volatile state these days, it’s tempting to dig a hole in your backyard and bury your savings. This way you’d at least know where your money is at all times and how it’s performing for you.

Luckily, there are still some secure places you can invest your money and you won’t have to be afraid of your financial future.

Here’s a list of some places you should consider investing your money with very minimal risk:

1. Open money market / high interest savings accounts.
Money market accounts are great ways to invest money for the short-term. If you need a quick turnaround these are stable ways to secure a return on your investment. The current average yield ranges from 0.50% to high as 4.00%. The bank will reinvest your money into short-term securities with that solid interest rate as further incentive. These accounts are liquid and usually FDIC insured. The only drawback is that some money market accounts may require a minimum balance.

2. Treasuries are safe.
T-bills are issued by the U.S. government and are considered very low-risk investments. They are fully backed by the government. You can choose the maturity date when you’re investment will be fully realized. Short-term T-bills are the safest investments with maturity dates of 13 or 26 weeks.

3.Certificates of Deposit.
CDs are available through your bank or broker and are also very safe investments. They have set maturity dates and you’re locked into your interest rate at the time of your investment. If you withdraw your funds early then you incur a penalty that can be costly.

4. 401k Plans.
If your employer offers a 401k plan then you’d be wise to invest in it. This is your money that you put in on a pre-tax basis. Within your plan you can choose what funds you want to invest in. Whether you’re willing to assume risk or need stable funds you’ll find them in your overall plan.

5. Mutual funds.
There are many mutual funds that are tailored for those who have little appetite for risk. The mutual fund is monitored by a fund manager that invests your money in a number of stocks or other mutual funds. One drawback is that you need to pay administrative fees for the management of your fund.

6. Savings bonds.
These bonds will offer a low return but also are virtually risk-free, which is a nice thought in this financial climate.

Hat tip goes to Bankaholic reader Loretta T. for spotting this deal. AmboyDirect is running a promo on their 3.25% APY e-Savings Account ($3k min). If you open an account with at least $3000 balance for 90 days, then Amboy Direct will award you with a bonus $50.

Offer expires 9/30/08.

Wells Fargo Bank deals are fairly rare. This is a hassle-free deal too. All you have to do is open a checking account with $100 minimum deposit, and they will credit your account with $50 within 45 days.

Wells Fargo is one of the few banks that actually weathered the credit crunch quite nicely. In fact, just recently, Wells Fargo stock overtook Citi in terms of market capitalization.

This is a good deal from a great bank.

US Bank is running a deal where you can get free $100 gas for applying for the US Bank Cash Bonus Check Card with a checking account and linking it up with an Exxon mobile Speedpass key tag.

Remember, this only works at Exxon Mobil gas stations. This deal expires September 07, 2008.